|
on Environmental Economics |
| By: | Taran Fæhn and Annegrete Bruvoll (Statistics Norway) |
| Abstract: | Pollution intensive production can be avoided domestically by increased imports and less exports of dirty products. Such trade effects may imply more emissions abroad, or pollution leakages. We study whether such leakages may contribute to the observed inverted relationship between emissions and economic growth - the Environmental Kuznets Curve (EKC). In our case, the rich, open Norwegian economy, we find little evidence for the hypothesis that pollution leakages contribute to explain the EKC. Despite an observed decoupling of emissions from economic growth over the past 20 years, there was no increase in pollution leakages over this period. Rather, emissions related to export increased far more than the foreign emissions embodied in import, implying reduced leakages. In future projections, we find a lower degree of decoupling than in the past, but no corresponding reductions in leakages. Instead, leakages increase. This conclusion is fairly invariant to assumptions about future climate policy. |
| Keywords: | Climate policy; dynamic CGE model; endogenous policy; Environmental Kuznets Curve; pollution leakage |
| JEL: | D58 O11 Q25 Q28 Q48 |
| Date: | 2006–09 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:477&r=env |
| By: | Vinicio Vannucci; Loredana Torsello |
| Abstract: | Environmental economics suggests a number of techniques to assess public goods. Such methods, surrogating traditional market mechanism, allow estimations of willingness to pay for improving environmental quality. In the case study proposed in this paper an hedonic price method is implemented to assess the benefits deriving by an improvement of environmental quality due to a reduction in odor emissions. In fact, odor impacts are usually the main pressure perceived by inhabitants living near sugar production plants (localized in Tuscany, in the current case study). The implementation of the hedonic price method allows to exhibit that this kind of externalities affect the real estate market in the nearby the area |
| Keywords: | hedonic price method, economic assessment of natural resources, odor nuissance |
| JEL: | Q51 |
| Date: | 2006–07 |
| URL: | http://d.repec.org/n?u=RePEc:usi:wpaper:485&r=env |
| By: | Claustre Bajona (Economics University of Miami); David Kelly |
| Abstract: | Countries that wish to erect trade barriers have a variety of instruments at their disposal. In addition to tariffs and quotas, countries can offer tax relief, low interest financing, reduced regulation ,and other subsidies to domestic industries facing foreign competition. In a trade agreement, countries typically agree to reduce not only tariffs, but also subsidies. We consider the effect of a trade agreement on pollution emissions. We show that while reducing tariffs may indeed increase pollution intensive production in a country, reductions in some subsidies required by the trade agreement reduce pollution in general equilibrium for reasonable parameter values. The reduction results from two effects. First, a reduction in subsidies to firms reduces pollution-causing capital accumulation. Second, if subsidized firms, industries, and/or state owned enterprises are sufficiently more pollution intensive, then reducing subsidies moves capital and labor from more to less pollution intensive firms. We calibrate the model to the case of China and show that pollution emissions after China's accession to the WTO are up to 22.9 percent lower than a baseline in which China does not enter the WTO, without any pollution abatement policy changes or environmental side agreements. |
| Keywords: | trade agreements, domestic subsidies, pollution emissions, dynamic general equilibrium |
| JEL: | F18 F41 Q56 |
| Date: | 2006–12–03 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed006:306&r=env |
| By: | Knut H. Alfsen and Mads Greaker (Statistics Norway) |
| Abstract: | Norway has a long history in trying to develop management tools for sustainable development. From the early development of natural resources accounts in the 1980’s, through discussions of the usefulness of indices like “green GDP” to efforts of developing sustainable development indicators, experiences have been gained. The paper seeks to both describe the landscape and discussions associated with the key terms, and to communicate some lessons drawn from the Norwegian experiences. The conclusion focuses on the fact that whatever information is collected and organised to support the relevant decision-making processes, the final outcome should always be judged in terms of its impacts on policy processes. Thus, we issue a warning against large-scale development of information systems, without due regard to the final utilisation of the output. |
| Keywords: | Green accounting; Natural resource and environmental accounting; sustainable development indicators; green GDP; SEEA |
| JEL: | N5 Q2 Q3 |
| Date: | 2006–10 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:478&r=env |
| By: | Iulie Aslaksen and Anne Ingeborg Myhr (Statistics Norway) |
| Abstract: | How much is a wildflower worth? Inspired by “The worth of a songbird” by Funtowicz and Ravetz (1994) we use the value of a wildflower as symbol of the complexity of evaluating environmental qualities and risks. We critically discuss the application of cost-benefit analysis in evaluating environmental impacts of adoption of genetically modified organisms (GMOs). We argue that cost-benefit analysis should be supplemented with other methods, such as processes for assessing uncertainty, accommodation of scientific disagreements, and integration of stakeholders’ interests and perspectives. A more inclusive perspective is to develop precautionary approaches that recognize the multidimensional nature of environmental qualities and risks, such as irreplaceability, irreversibility, uncertainty and complexity. Precautionary approaches can contribute to develop a stronger environmental responsibility within the framework of rational self-interest. |
| Keywords: | cost-benefit analysis; environmental risk; environmental value; genetically modified organisms; precautionary principle; scientific uncertainty |
| JEL: | D81 Q20 Q50 |
| Date: | 2006–09 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:476&r=env |
| By: | Mohammad Alauddin (University of Queensland); John Quiggin (Risk & Sustainable Management Group, School of Economics, University of Queensland) |
| Abstract: | High population pressure and the rapid pace of human activity including urbanization, industrialization and other economic activities have led to a dwindling supply of arable land per capita and a process of agricultural intensification in South Asia. While this process has significantly increased food production to feed the growing population, it has also entailed considerable damage to the physical environment, including degradation and depletion of natural resources and unsustainable use of land and water resources. This paper employs the analytical tools of economic theory, environmental and ecological economics to model the impact of irrigation in South Asia. It underscores the need for an eclectic approach to policy responses stemming from private and common property rights theories, externality theory and sustainability theory with a view to environmentalizing agricultural development. |
| Keywords: | Agricultural intensification, environmental intensification, groundwater intensity. |
| JEL: | O1 Q0 Q2 |
| Date: | 2006–04 |
| URL: | http://d.repec.org/n?u=RePEc:rsm:murray:m06_4&r=env |
| By: | Bontemps, C.; Simioni, M.; Surry, Y. |
| Abstract: | In the area of environmental analysis using hedonic price models, we investigate the prerformance of various nonparametric and semiparametric specifications. The proposed model specifications are made up of two parts : a linear component for house characteristics and a non(semi) parametric component representing the nonlinear influence of environmental indications on house prices. We adopt a general-to-specific search procedure, based on recent specification tests comparing the proposed specifications with a fully nonparametric benchmark model, to select the best model specification. An application of these semiparametric models to rural districs indicates that pollution resulting from intensive livestock farming have a significant nonlinear impact on house prices. ...French Abstract : L'objectif de cet article est d'évaluer l'impact sur les prix des résidences de la pollution d'origine agricole en utilisant différentes spécifications semi paramétriques d'un modèle de prix hédoniques. Les spécifications proposées se décomposent en deux parties : une partie linéaire dans les caractéristiques des maisons et une partie non ou semi paramétrique capturant les effets non linéaires des indicateurs de pollution. Une application a un échantillon de ventes de résidences dans les communes rurales bretonnes montre que la pollution résultant de pratiques intensives dans l'élevage influe de façon significative et non linéaire sur les prix des maisons. |
| Keywords: | HEDONIC PRICING ; SEMIPARAMETRIC MODELS ; SPECIFICATION TESTS ; NONPOINT SOURCE POLLUTION ; POLLUTION AGRICOLE; AGRICULTURE INTENSIVE; PRIX; TEST STATISTIQUE; ECONOMETRIE; MAISON INDIVIDUELLE ; BRETAGNE |
| JEL: | C14 R21 R32 Q0 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:rea:inrawp:200602&r=env |
| By: | Bontemps, C.; Nauges, C. |
| Abstract: | Bottled water consumption has been steadily growing in the world for the past 30 years, in spite of its excessively high price compared to tap water. The Italian drink more bottled water than anybody else in the world, followed by the French who drink about 130 liters per year per inhabitant. In this country, despite an access to safe public drinking water, 42% of the population regularly drink bottled water. Using scanner data on French consumption combined with raw water quality and other environmental data, we show that raw water bad quality is the most important factor driving the dexision not to drink tap water. The estimated effect is found to be stronger for low-income households. We also confirm the significant direct impact of socioeconomic and demographic households' characteristics, as well as the role of cultural/regional factors. Overall, this study shows that pollution of raw water implies indirect costs for households who instead of drinking water from the tap spend up to 100 times more for bottled water. ...French Abstract : On propose dans cet article de mesurer, par une étude économétrique appropriée, l'impact des facteurs environnementaux, socioéconomiques et culturels sur la décision des ménages de boire (ou non) l'eau du robinet. L'originalité de notre approche réside d'une part, dans l'utilisation de données de consommation de ménages (SECODIP) associées à des informations sur la qualité de l'environnement dans la commune de résidence de ces ménages, en particulier la qualité des eaux brutes (IFEN-SCEES et DGS), et d'autre part dans l'utilisation du prix de potabilisation de l'eau comme mesure de la "mauvaise qualité" des eaux brutes. L'estimation d'un modèle probit sur un échantillon de 4 758 ménages montre que la "mauvaise qualité" des eaux brutes est le déterminant le plus important de la décision de (ne pas) boire l'eau du robinet. Le rôle significatif des caractéristiques des ménages et les effets régionaux sont également confirmés. |
| Keywords: | TAP WATER; BOTTLED WATER; ENVIRONMENTAL QUALITY; HOUSEHOLDS' CONSUMPTION ; MODELE ECONOMETRIQUE; EAU POTABLE; COMPORTEMENT DU CONSOMMATEUR; CONSOMMATION DES MENAGES; QUALITE DES EAUX; POLLUTION DE L'EAU; DISPARITE REGIONALE |
| JEL: | Q53 D12 C25 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:rea:inrawp:200601&r=env |
| By: | Chintrakarn, Pandej (SMU); Millimet, Daniel (SMU) |
| Abstract: | In one strand of research, analysts examine trends in and the determinants of energy usage and intensity. In a second strand, researchers analyze the impact of trade flows on environmental outcomes. Recently, Cole (2006) bridges this gap, analyzing the impact of trade intensity on energy usage utilizing panel data at the country level. Here, we analyze the impact of subnational trade flows across U.S. states on state-level energy usage and intensity, controlling for the endogeneity of trade flows. Our findings indicate that an expansion of subnational trade at worst has no impact on state-level energy usage, and may actually reduce energy usage (contrary to Cole's country-level findings), although the impacts are not uniform across sectors. |
| Keywords: | Bilateral Trade, Energy Intensity, Pollution Haven Hypothesis |
| JEL: | F18 Q4 |
| Date: | 2006–12 |
| URL: | http://d.repec.org/n?u=RePEc:smu:ecowpa:0601&r=env |
| By: | Dinar, Ariel; Farolfi, Stefano; Patrone, Fioravante; Rowntree, Kate |
| Abstract: | Governments and developing agencies promote participatory approaches in solving common pool resource problems, such as in the water sector. Two main participatory approaches have been applied separately, namely negotiation and mediation. In this paper the authors apply the Role-Playing Game that is a component of the Companion Modeling approach, a negotiation procedure, and the Cooperative Game Theory (Shapley value and the Nucleolus solution concepts) that can be mirrored as a mediated mechanism to a water allocation problem in the Kat watershed in South Africa. While the absolute results of the two approaches differ, the negotiation and the cooperative game theory provide similar shares of the benefit allocated to the players from various cooperative arrangements. By evaluating the two approaches, the authors provide useful tips for future extension for both the Role-Playing Games and the Cooperative Game Theory applications. |
| Keywords: | Water Supply and Systems,Water Supply and Sanitation Governance and Institutions,Environmental Economics & Policies,Water Conservation,Town Water Supply and Sanitation |
| Date: | 2006–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4083&r=env |
| By: | John Quigley (University of California, Berkeley); Aaron Swoboda (University of Pittsburgh) |
| Abstract: | We consider the general equilibrium implications of environmental regulations which result in a reduction of otherwise profitable residential development. Critical habitat designation under the Endangered Species Act is an important example. If the regulations affect a significant amount of land, they may have important effects on the rest of the regional economy - increasing rents and densities on lands not subject to the regulation, causing the conversion of lands from alternative uses, increasing the net developed area in the region, and decreasing consumer welfare. We develop a flexible general equilibrium simulation of the economic effects of critical habitat designation, explicitly considering the distributional effects upon owners of different types of land and upon housing consumers. The results of our simulation show that the most significant economic effects of critical habitat occur outside of the designated area. The prices and rents of non-critical habitat lands increase significantly. Incomes are redistributed across landlords, and the well being of housing consumers is further affected through these linkages. |
| Date: | 2006–07–14 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:bphupl:1070&r=env |
| By: | Mads Greaker and Yuyu Chen (Statistics Norway) |
| Abstract: | Genetically modified (GM) food has raised both health-risk fears and environmental concerns. This has led some countries to ban the trade in such food triggering a great deal of controversy among countries. In this paper we ask under what conditions will voluntary labeling of GM-free food be at least as good as a trade ban? And, under what conditions can providing labels for GM-free food be protectionist? Our main finding is that the merits of a product labeling policy depend crucially on the way food products are differentiated. If they are poorly differentiated from the beginning, a labeling policy will probably not function as good as a trade ban does; while if they are already well differentiated, a labeling policy is likely the optimal policy for the importing country. Finally, as long as consumers' willingness to pay to avoid GM-food is high, a labeling policy is not protectionist. In fact, if products are poorly differentiated from the beginning, foreign firms will probably increase their profit even if they do not choose to label their products. |
| Keywords: | Product-labeling; GMOs; protectionsim; trade policy |
| JEL: | H2 H7 Q2 Q28 |
| Date: | 2006–10 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:485&r=env |
| By: | Chunbo Ma (Department of Economics, Rensselaer Polytechnic Institute, Troy, NY 12180-3590, USA); David I. Stern (Department of Economics, Rensselaer Polytechnic Institute, Troy, NY 12180-3590, USA) |
| Abstract: | China experienced a dramatic decline in energy intensity from the onset of economic reform in the late 1970s until 2000, but since then rate of decline slowed and energy intensity actually increased in 2003. Most previous studies found that most of the decline was due to technological change, but disagreed on the role of structural change. To the best of our knowledge, no decomposition study has investigated the role of inter-fuel substitution in the decline in energy intensity or the causes of the rise in energy intensity since 2000. In this paper, we use logarithmic mean Divisia index (LMDI) techniques to decompose changes in energy intensity in the period 1980-2003. We find that: (1) technological change is confirmed as the dominant contributor to the decline in energy intensity; (2) structural change at the industry and sector (sub-industry) level actually increased energy intensity over the period of 1980-2003, although the structural change at the industry level was very different in the 1980s and in the post 1990 period; (3) structural change involving shifts of production between sub-sectors, however, decreased overall energy intensity; (4) the increase in energy intensity since 2000 is explained by negative technological progress; (5) inter-fuel substitution is found to contribute little to the changes in energy intensity. |
| JEL: | Q43 |
| Date: | 2006–12 |
| URL: | http://d.repec.org/n?u=RePEc:rpi:rpiwpe:0615&r=env |
| By: | William D. Nordhaus |
| Abstract: | The year 2005 brought record numbers of hurricanes and storm damages to the United States. Was this a foretaste of increasingly destructive hurricanes in an era of global warming? This study examines the economic impacts of U.S. hurricanes. The major conclusions are the following: First, there appears to be an increase in the frequency and intensity of tropical cyclones in the North Atlantic. Second, there are substantial vulnerabilities to intense hurricanes in the Atlantic coastal United States. Damages appear to rise with the eighth power of maximum wind speed. Third, greenhouse warming is likely to lead to stronger hurricanes, but the evidence on hurricane frequency is unclear. We estimate that the average annual U.S. hurricane damages will increase by $8 billion at 2005 incomes (0.06 percent of GDP) due to global warming. However, this number may be underestimated by current storm models. Fourth, 2005 appears to have been a quadruple outlier, involving a record number of North Atlantic tropical cyclones, a large fraction of intense storms, a large fraction of the intense storms making landfall in the United States, and an intense storm hitting the most vulnerable high-value region in the country. |
| JEL: | Q0 Q5 Q54 |
| Date: | 2006–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:12813&r=env |
| By: | Anna Alberini |
| Abstract: | State Voluntary Cleanup Programs (VCPs) were established starting in the 1990s to encourage the environmental remediation and redevelopment of contaminated properties. These programs typically offer liability relief, subsidies and other regulatory incentives in exchange for site cleanup. This paper asks three questions: First, what type of properties are attracted to voluntary cleanup programs? Second, what is the interaction between these state programs and other incentives for remediation and economic development, such as Enterprise Zone and Brownfield Zone designations? Third, what is the effect of participation in the VCP on property values? We use data from Colorado’s VCP to answer these questions. We find that most of the properties enrolled in this program were not previously listed on EPA’s contaminated site registries, and that most applicants seek to obtain directly a “no further action†determination without undergoing remediation. The main determinants of participation are the size of the parcel and whether the surrounding land use is primarily residential, while other incentives have little effect. Properties with confirmed contamination sell at a 47% discount relative to comparable uncontaminated parcels, and participation tends to raise the property price, but this latter effect is not statistically significant. Taken together, these findings suggest that the participating properties are those with high development potential, and hint at the possibility that owners or developers may be seeking to obtain a clean bill of health from the State with only minimal or no cleanup efforts. Were these findings confirmed with data from other states, they would raise doubts about the effectiveness of voluntary programs in encouraging remediation and their usefulness in reversing some of the undesired effects of the Superfund legislation. |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p126&r=env |
| By: | Richard Carson (University of California, San Diego); CLIVE GRANGER (UNIVERSITY OF CALIFORNIA); Jeremy Jackson (Scripps Institution of Oceanography, University of California, San Diego); Wolfram Schlenker (Department of Economics and School of International and Public Affairs, Columbia University) |
| Abstract: | Almost all fisher models assume time-invariant parameter values of the underlying biological growth function except for an i.i.d. error term. We examine the economic implications of cyclical growth parameters in both single and multi-species models, which are frequently observed in many real-world fisheries. Neither optimal harvest rates nor optimal escapement (remaining fish stock after fishing) remain constant as current models would predict. The amplitude of the optimal escapement is incrasing in the amplitude of the biological growth function. Moreover, the optimal harvest rate lags the cycle of the biological growth function, i.e., the highest harvest rate is observed after biological conditionos have started to decline and the optimum escapement level has alrady decreased. This is in sharp contrast to current policies which are in phase with biological conditions and hence imply and increasea/decrease in harvest quotas when the biological system is improving/deteriorating. In our model, harvest closures are only optimal during time periods when growth parameters are improving most rapidly. We show that once the periodicity of the biological growth function is incorporated, many of the traditional policy prescriptions reverse. |
| Keywords: | fisheries modeling, time varying growth rates, |
| Date: | 2006–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:ucsdec:2006-06&r=env |