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on Environmental Economics |
| By: | Böhringer, Christoph; Moslener, Ulf; Sturm, Bodo |
| Abstract: | Since January 1st the European Union has launched an EU-internal emissions trading scheme (EU ETS) for emission-intensive installations as the central pillar to comply with the Kyoto Protocol. The EU ETS may be linked at some time to a Kyoto emissions market where greenhouse gas emission allowances of signatory Kyoto countries can be traded. In this paper we investigate the implications of Russian market power for environmental effectiveness and regional compliance costs to the Kyoto Protocol taking into account potential linkages between the Kyoto emissions market and the EU ETS. We find that Russia may have incentives to join the EU ETS as long as the latter remains separated from the Kyoto international emissions market. In this case, Russia can exert monopolistic price discrimination between two separated markets thereby maximizing revenues from hot air sales. The EU will be able to substantially reduce compliance costs when it does not restrain itself to EU-internal emission regulation schemes. However, part of the gains from extra-EU emissions trading will come at the expense of environmental effectiveness as (more) hot air will be drawn in. |
| Keywords: | market power, hot air, climate policy |
| JEL: | D42 Q25 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:4595&r=env |
| By: | Böhringer, Christoph; Koschel, Henrike; Moslener, Ulf |
| Abstract: | Energy markets and energy-intensive industries in all EU member states – especially in Germany – are subject to a diverse set of policies related to climate change. We analyse the potential efficiency losses from simultaneous application of emission taxes and emissions trading in qualitative and quantitative terms within a partial equilibrium framework for the EU. It turns out that those firms within the EU Emissions Trading Scheme (EU ETS) which at the same time are subject to domestic energy or carbon taxes will abate inefficiently much while other firms within the EU ETS will benefit from lower international emission permit prices. The same logic disproves the argument that additional national emission taxes will reduce inefficiencies in abatement supposed to be resulting from allowance (over-) allocation. In essence, unilateral emission taxes within the EU ETS are ecologically ineffective and subsidise net permit buyers. Thus, all firms that are subject to emissions trading and any CO2 emission taxes at the same time should be exempt from the latter. The foregone tax revenue could be generated by auctioning a small fraction of the permits instead. This would be cheaper for the emissions trading sectors as a whole and could be compatible even with the tight auctioning restrictions of the EU directive. |
| Keywords: | emissions trading, emission taxes, National Allocation Plans |
| JEL: | D61 H21 H22 Q58 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:4597&r=env |
| By: | Thierry Bréchet; Pierre-André Jouvet |
| Abstract: | Empirical evidence support the existence of pollution abatement possibilities at negative costs, the so-called 'no-regret options'. We provide a microeconomic rationale for the existence of such potential at the firm's level under environmental regulation. An econometric application confirms that marginal pollution abatement cost curves with no-regret options are compatible with a standard production function, as stated in our theoretical model. |
| Keywords: | No-regret options, pollution, regulation |
| JEL: | D20 Q50 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2006-12&r=env |
| By: | Pierre-André Jouvet; Fabien Prieur |
| Abstract: | We develop an overlapping generations model of growth in which production generates polluting harmful emissions. In order to control pollution, the government implements an emission permits system. However, subject to political constraints, it is not able to assign the optimal quota on emissions. Hence, in such a framework, regulating pollution solely by permits does not allow the decentralized economy to achieve the long run social optimum. Our contribution is then to show that the combination of the existing permits system with a policy intended to promote a price discrimination between agents on the permits market, is a mean not only to circumvent these rigidities but also to restore the Pareto optimality of the equilibrium. |
| JEL: | D91 Q28 H23 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2006-21&r=env |
| By: | Pierre-André Jouvet; Philippe Michel; Gilles Rotillon |
| Abstract: | We study the optimal growth path and its decentralization in an overlapping generations model with two consumption goods and pollution effect. We consider two production sector i.e. one with a direct effect of pollution and the other with an indirect pollution effect by using energy. In the presence of externalities, decentralization of an optimal path needs some specific taxes in addition to lump-sum transfers. The introduction of a market for pollution permits, concerning only the polluting sector, neutralizes the external environmental effects. We show that there is a unique management of permits such that the equilibrium coincides with the optimal path: all permits should be auctioned i.e. no free permits to firms. This conclusion is in contradiction with the usual practice of grandfathering. |
| Keywords: | Optimal growth, environment, market of permits. |
| JEL: | D61 D9 Q28 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2006-1&r=env |
| By: | Thilo W. Glebe (Environmental Economics and Agricultural Policy Group, Technical University of Munich); Uwe Latacz-Lohmann (Department of Agricultural Economics, Christian-Albrechts University, Kiel) |
| Abstract: | The paper develops a conceptual framework for the welfare analysis of agri-environmental policy within an international trade context. Based on a two-factor production model, we analyse the marginal social costs of agricultural production before and after the introduction of an efficient agri-environmental policy. The paper shows that an assessment of social external costs, which is predicated on the factor intensity prior to the implementation of an agri-environmental policy, underestimates the potential welfare improvements that can be achieved by introducing an efficient environmental policy. We further demonstrate that, even if the marginal environmental effect of farming is negative prior to introducing agri-environmental policy, the co-existence of positive and negative externalities might cause the production level to increase as a result of an optimal environmental policy. |
| Date: | 2006–01 |
| URL: | http://d.repec.org/n?u=RePEc:tuu:papers:012006&r=env |
| By: | Yusuf, Arief Anshory; Koundouri, Phoebe |
| Abstract: | Hedonic pricing studies estimating the value of clean air in developing countries have been constrained, by the absence of accurate pollution data. Although less accurate pollution data, produced through measurements based on environmental modeling, exists, if used in estimation is subject to attenuation bias due to measurement error in pollution. We show that, when pollution is spatially correlated, instrumental variable regression, using average pollution of the neighbouring observations as the instrument, can produce consistent estimation of the pollution coefficient of the hedonic function. We apply our approach to the Jakarta housing market. |
| Keywords: | Hedonic price; measurement error; air pollution |
| JEL: | Q51 C20 |
| Date: | 2006–10–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:1729&r=env |
| By: | Thilo W. Glebe (Environmental Economics and Agricultural Policy Group, Technical University of Munich) |
| Abstract: | The cost-effectiveness of agri-environmental auctions soliciting two-dimensional bids consisting of conservation activity and compensation payment is analyzed. Taking a selfselecting contract schedule as a benchmark, an optimally designed auction has the potential to reduce government expenditures significantly. However, the relative cost-effectiveness of a bidding process is determined by the bid scoring system. If the government imposes stricter environmental restrictions to farmers with lower compliance costs, a bid ranking system adding scores for environmental performance and financial demands is more cost-effective than an index calculating the ratio between proposed compensation payments and environmental program benefits. |
| Keywords: | agri-environmental policy, auctions, conservation contracts, cost-effectiveness, information asymmetry, mechanism design |
| Date: | 2006–03 |
| URL: | http://d.repec.org/n?u=RePEc:tuu:papers:032006&r=env |
| By: | Yusuf, Arief Anshory |
| Abstract: | Using a technology where pollution is regarded as by-product of industry's activity and applied in a simple setup of Heckscher-Ohlin-Copeland-Taylor model, this paper analyses the possible distributional impacts of stricter environmental policy in a developing country characterized by the presence of labor-intensive informal sector which may not be a subject to the environmental regulation, and capital intensive formal sector which may face minimum wage policy. The comparative static analysis illustrates that stricter environmental regulation if enforced uniformly accross industries in undistorted labor market, hurts both labor and capital owner, leaving income ditribution unchanged. On the contrary, when economy is dualistic, income distribution may change due to labor reallocation. When the stricter regulation can only be enforced in formal sector, capital owner will be worse-off while labor are better-off. If initially capital reward is higher, the environmental policy will improve income distribution in favor of labor. The change in income distribution is greater when economy is dualistic. |
| Keywords: | Environmental Policy; Dualistic Economy; Distribution |
| JEL: | Q52 O17 |
| Date: | 2007–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:1735&r=env |
| By: | Wittneben, B.B.F. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University) |
| Abstract: | The differences in the way climate change mitigation projects are facilitated under the Kyoto Protocol as compared to the financial mechanism of the United Nations Framework Convention on Climate Change (UNFCCC) demonstrate institutional change processes that evolved from global climate change negotiations. Institutional change happens when new practices become accepted and interactions between organizations carry new meanings. Models of the two policy options are presented in this paper depicting organizational interactions to demonstrate the evolution of rule-setting in this arena. A discussion of power implications is provided with the conclusion that countries of the North as well as business corporations have increased their influence in the institutional framework of international climate change mitigation. Institutional theory needs to be further developed to be able to explain the dynamic changes that led to this shift in power potential. |
| Keywords: | Power relations;Institutional change;Institutional theory;Climate change;Environmental policy; |
| Date: | 2007–01–25 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:eureri:30009606&r=env |
| By: | Thilo W. Glebe (Environmental Economics and Agricultural Policy Group, Technical University of Munich) |
| Abstract: | This paper analyses the welfare effects of agricultural trade liberalisation when taking into account the positive environmental externalities of European farming. We show that free trade is suboptimal, if no efficient environmental policy addressing the provision of multifunctional amenities is implemented. However, tariff reductions in a net-importing country will increase the incentive for introducing an environmental policy, though this policy will be strategically distorted. Despite its strategic character, introducing an optimal environmental policy, when simultaneously abolishing a tariff policy in an importing country, will unambiguously enhance global welfare. |
| Keywords: | Agricultural trade, agricultural multifunctionality, strategic environmental policy |
| Date: | 2005–06 |
| URL: | http://d.repec.org/n?u=RePEc:tuu:papers:062005&r=env |
| By: | Robert S. Pindyck |
| Abstract: | In a world of certainty, the design of environmental policy is relatively straightforward, and boils down to maximizing the present value of the flow of social benefits minus costs. But the real world is one of considerable uncertainty – over the physical and ecological impact of pollution, over the economic costs and benefits of reducing it, and over the discount rates that should be used to compute present values. The implications of uncertainty are complicated by the fact that most environmental policy problems involve highly nonlinear damage functions, important irreversibilities, and long time horizons. Correctly incorporating uncertainty in policy design is therefore one of the more interesting and important research areas in environmental economics. This paper offers no easy formulas or solutions for treating uncertainty – to my knowledge, none exist. Instead, I try to clarify the ways in which various kinds of uncertainties will affect optimal policy design, and summarize what we know and don’t know about the problem. |
| Date: | 2006–11 |
| URL: | http://d.repec.org/n?u=RePEc:mee:wpaper:0617&r=env |
| By: | Thilo W. Glebe (Environmental Economics and Agricultural Policy Group, Technical University of Munich); Uwe Latacz-Lohmann (Department of Agricultural Economics, Christian-Albrechts University, Kiel) |
| Abstract: | We use an extended partial equilibrium trade model to derive optimal environmental policy responses to tariff reduction requirements and assess the impact of such policies on the welfare of trading partners. We find that countries which attribute preferential political weights to farmers’ welfare have an incentive to implement environmental policies that deviate from the Pigouvian solution – even if production is not de facto linked to environmental externalities. We clarify the conditions under which trading partners do not gain from unilateral trade liberalization if trade concessions are accompanied by strategic environmental policy changes. We postulate a role for the WTO in overseeing the process of formulating domestic policies to further the multifunctional role of agriculture. |
| Date: | 2005–08 |
| URL: | http://d.repec.org/n?u=RePEc:tuu:papers:082005&r=env |
| By: | Anger, Niels; Böhringer, Christoph; Lange, Andreas |
| Abstract: | In this paper we study political-economy determinants of the differentiation of environmental taxes between sectors. Using a common-agency model, we provide predictions on tax differentiation which are then tested using data from the German Ecological Tax Reform. As the reform is revenue neutral and reduces labor costs, tax differentiation is not only determined by the activity of lobby groups favoring reduced tax rates, but also by the groups’ interest in revenue rebates to labor. Empirical data underpin our theoretical findings: A regression analysis of Germany’s green tax reform explains environmental tax differentiation by the presence of sectoral interest groups. Besides market concentration and energy demand elasticities, the exposure of industries to international trade flows plays an important role in the environmental tax design. |
| Keywords: | environmental tax reform, interest groups, common agency |
| JEL: | D62 H23 P16 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:4582&r=env |
| By: | Fleischer, Aliza; Lichtman, Ivgenia; Mendelsohn, Robert |
| Abstract: | The authors use a Ricardian model to test the relationship between annual net revenues and climate across Israeli farms. They find that it is important to include the amount of irrigation water available to each farm in order to measure the response of farms to climate. With irrigation water omitted, the model predicts that climate change is strictly beneficial. But with water included, the model predicts that only modest climate changes are beneficial, while drastic climate change in the long run will be harmful. Using the Atmospheric Oceanic Global Circulation Models scenarios, the authors show that farm net revenue is expected to increase by 16 percent in 2020, while in 2100 farm net revenue is expected to drop by 60-390 percent varying between the different scenarios. Although Israel has a relatively warm climate, a mild increase in temperature is beneficial due to the ability to supply international markets with farm products early in the season. The findings lead to the conclusion that securing water rights to the farmers and international trade agreements can be important policy measures to help farmers adapt to climate change. |
| Keywords: | Climate Change,Water Supply and Sanitation Governance and Institutions,Water Supply and Systems,Water and Industry,Common Property Resource Development |
| Date: | 2007–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4135&r=env |
| By: | Thilo W. Glebe (Environmental Economics and Agricultural Policy Group, Technical University of Munich) |
| Abstract: | The paper employs a partial equilibrium model of international trade to derive optimal environmental policy responses to tariff reduction requirements and assesses the impact of such policies on social welfare. The domestically optimal policy adjustment for a large importing country committing itself to unilateral tariff reduction is to lower the Pigouvian tax rate. Transforming a Pigouvian instrument into a strategic environmental policy, following trade liberalization, enhances global welfare. The paper thereby proves that the distorting effect of an optimal tariff is generally greater than that of a strategically motivated environmental policy. On the other hand, global efficiency gains are uncertain, if countries engage in an environmental tax war as a result of trade liberalization. To avoid situations where gains from trade liberalisation are impaired by strategically motivated adjustments to domestic policies, tariff reductions should be negotiated along with environmental standards. It is argued that criteria for distinguishing genuine policy from disguised protectionism need to be established. |
| Date: | 2005–07 |
| URL: | http://d.repec.org/n?u=RePEc:tuu:papers:072005&r=env |
| By: | Thilo W. Glebe (Environmental Economics and Agricultural Policy Group, Technical University of Munich); Klaus Salhofer (Environmental Economics and Agricultural Policy Group, Technical University of Munich) |
| Abstract: | The share of agricultural area enrolled in EU agri-environmental programs varies significantly between EU member states. These national differences are explained, based on a model that reflects both, that these programs internalize externalities and the political decision making process. We identify six factors which affect the extent to which agri-environmental programs are implemented: environmental benefits, opportunity costs of participation, budgetary pressure, the share of program expenditures financed by the EU, the political weight attributed to farmers at the national, and the political influence of each country at the EU level. In addition, we demonstrate that if the policy decision making process is non-cooperatively at the EU level, countries which contribute less to the EU budget will ceteris paribus implement more programs. Using data for four years and feasible Generalised Least Square methods we are able to confirm our theoretical results and a non-cooperative behavior of EU member states. |
| Keywords: | agricultural policy, agri-environmental programs, European Union |
| JEL: | H23 Q18 C7 |
| Date: | 2006–04 |
| URL: | http://d.repec.org/n?u=RePEc:tuu:papers:042006&r=env |
| By: | Enrique Delamonica (UNICEF); Santosh Mehrotra (Regional Centre for Asia at Bangkok, UNDP) |
| Abstract: | The emphasis on growth has led to an under-emphasis of the micro-impacts of macro-economic policies. Whether growth reduces income-poverty is crucially dependent on its impact on employment. This paper addresses the question: what kind of productive employment can an economy generate that fulfils three objectives: one, personal fulfilment; two, value added; and three, restores the organic link between humans and nature. Growth policies that do not fulfil these criteria fail the test for human capability enhancement with environmental sustainability. Policies which recognize a dual synergy framework like the paper proposes, and which have been demonstrated to fulfil these objectives are described and discussed for specific countries/sectors. A paper for a book: Sustainable Human Development and the Capability Approach, to be edited by Enrica Chiappero Martinetti (Department of Economics, University of Pavia, Italy) & Anantha K. Duraiappah (International Institute for Sustainable Development, Canada). |
| Keywords: | Capability approach, Environment, Employment, Economic policies, Poverty |
| JEL: | B41 D11 D12 E31 I32 O54 |
| Date: | 2006–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipc:wpaper:0013&r=env |
| By: | Daniel M. Kammen; Majid Ezzati; Robert Bailis |
| Abstract: | We analyzed the mortality impacts and greenhouse gas (GHG) emissions produced by household energy use in Africa. Under a business-as-usual (BAU) scenario, household indoor air pollution will cause an estimated 9.8 million premature deaths by the year 2030. Gradual and rapid transitions to charcoal would delay 1.0 million and 2.8 million deaths, respectively; similar transitions to petroleum fuels would delay 1.3 million and 3.7 million deaths. Cumulative BAU GHG emissions will be 6.7 billion tons of carbon by 2050, which is 5.6% of Africa’s total emissions. Large shifts to the use of fossil fuels would reduce GHG emissions by 1 to 10%. Charcoalintensive future scenarios using current practices increase emissions by 140 to 190%; the increase can be reduced to 5 to 36% using currently available technologies for sustainable production or potentially reduced even more with investment in technological innovation. |
| Keywords: | Biomass, Petroleum, Energy, Africa |
| URL: | http://d.repec.org/n?u=RePEc:cis:africa:005&r=env |
| By: | Cinzia Di Novi (Collegio Carlo Alberto, University of Turin and Department of Public Policy and Public Choice - POLIS, University of Eastern Piedmont, Alessandria) |
| Abstract: | This paper uses the Behavioral Risk Factor Surveillance System (2001) data in conjunctions with Environmental Protection Agency data to investigate on how individual health habits, air outdoor pollution and diseases combine to affect the likelihood of good health status and the amount of health investments. The environment is a second-best world characterized by uncertainty on the level of health, in which individuals are not able to avoid health shocks completely. Models are estimated using three different measures of overall health: a measure of self-assessed health and two health outcomes indicators (blood pressure and activity limitations due to health problems). |
| Keywords: | Health production, multivariate probit, life-style, pollution, self-assessed health, health outcome |
| JEL: | I12 C31 D13 D81 Q25 |
| Date: | 2007–01 |
| URL: | http://d.repec.org/n?u=RePEc:jep:wpaper:07001&r=env |
| By: | Johanna Etner; Pierre-André Jouvet |
| Abstract: | The well known economic advantage of tradable permits over command and control obviously vanish if firms do not trade because of policy uncertainty. In fact, uncertainty about changes in the permits program could make firms reluctant to invest in tradable permits. This article proposes to give optimal risk sharing rules in order to respond to policy risk. We show how banking of tradable permits can be used as a tool of policy risk control. |
| Keywords: | Firm behavior, tradable permits, policy risk. |
| JEL: | D21 D80 Q58 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2006-7&r=env |
| By: | Dasgupta, Susmita; Laplante, Benoit; Meisner, Craig; Wheeler, David; Jianping Yan |
| Abstract: | Sea level rise (SLR) due to climate change is a serious global threat. The scientific evidence is now overwhelming. Continued growth of greenhouse gas emissions and associated global warming could well promote SLR of 1m-3m in this century, and unexpectedly rapid breakup of the Greenland and West Antarctic ice sheets might produce a 5m SLR. In this paper, the authors have assessed the consequences of continued SLR for 84 developing countries. Geographic Information System (GIS) software has been used to overlay the best available, spatially-disaggregated global data on critical impact elements (land, population, agriculture, urban extent, wetlands, and GDP) with the inundation zones projected for 1-5m SLR. The results reveal that hundreds of millions of people in the developing world are likely to be displaced by SLR within this century, and accompanying economic and ecological damage will be severe for many. At the country level, results are extremely skewed, with severe impacts limited to a relatively small number of countries. For these countries (such as Vietnam, A. R. of Egypt, and The Bahamas), however, the consequences of SLR are potentially catastrophic. For many others, including some of the largest (such as China), the absolute magnitudes of potential impacts are very large. At the other extreme, many developing countries experience limited impacts. Among regions, East Asia and the Middle East and North Africa exhibit the greatest relative impacts. To date, there is little evidence that the international community has seriously considered the implications of SLR for population location and infrastructure planning in developing countries. The authors hope that the information provided in this paper will encourage immediate planning for adaptation. |
| Keywords: | Wetlands,Climate Change,Population Policies,Country Strategy & Performance,Geographical Information Systems |
| Date: | 2007–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4136&r=env |
| By: | Clevo Wilson; Clem Tisdell (School of Economics and Finance, Queensland University of Technology) |
| Abstract: | This paper examines impacts, both positive and negative, of globalisation on the selection of a limited gene pool in livestock and agricultural production. This concentration has increased yields at high rates. It is associated with modern forms of production that are an integral part of a globalised economic system. Such strategies, at least in the short run, reduce production costs and cater for the demands of an increasing population and the needs of modern societies. As will be demonstrated, the ascribed economic benefits of such forms of production also lead to the promotion of such production by donor agencies and are linked to overseas aid, in some instances. On the other hand, specialised systems of production are not without their drawbacks. Such systems of production make many breeds (eg. ‘all-round’ breeds) obsolete for commercial use. This often leads to their gradual extinction because of the low economic values placed on them. When concentration of production relies on a few breeds it inevitably leads to several lock-in dimensions in the use of some production inputs. The lock-in aspects of this form of production, processes involved in the disappearance of breeds and their implications for sustainable development are amongst the issues discussed in this paper. |
| URL: | http://d.repec.org/n?u=RePEc:qut:dpaper:198&r=env |
| By: | Luc Doyen; Vincent Martinet; Olivier Thebaud |
| Abstract: | This paper develops a formal analysis of the recovery processes for a fishery, from undesired to desired levels of sustainable exploitation, using the theoretical framework of viability control. We define sustainability in terms of biological, economic and social constraints which need to be met for a viable fishery to exist. Biological constraints are based on the definition of a minimal resource stock to be preserved. Economic constraints relate to the existence of a minimum profit per vessel. Social constraints refer to the maintenance of a minimum size of the fleet, and to the maximum speed at which fleet adjustment can take place. Using fleet size and fishing effort per vessel as control variables, we identify the states of this bioeconomic system for which sustainable exploitation is possible, i.e. for which all constraints are dynamically met. Such favorable states are called viable states. We then examine possible transition phases, from non-viable to viable states. We characterize recovery paths, wih respect to the economic and social costs of limiting catches during the recovery period, and to the duration of this transition period. Sensitivity of each of the constraints to transition costs and time are analyzed. The analysis is applied to a single stock fishery; preliminary results of an empirical application to the bay of Biscay nephrops fishery are presented. |
| Keywords: | Sustainable fishing, recovery, fishery policies, bio-economic modeling. |
| JEL: | Q22 C61 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2006-5&r=env |
| By: | Thierry, BRECHET (UNIVERSITE CATHOLIQUE DE LOUVAIN, Department of Economics); Henry, TULKENS (UNIVERSITE CATHOLIQUE DE LOUVAIN, Department of Economics) |
| Abstract: | Technological choices are multi-dimensional and thus one needs a multidimensional methodology to identify best available techniques. Moreover, in the presence of environmental externalities generated by productive activities, ÔbestÕ available techniques should be best from SocietyÕs point of view, not only in terms of private interests. In this paper we develop a comprehensive modeling tool, based on methodologies appropriate to serve these two purposes, namely linear programming and internalization of external costs. We conclude that in this context there is in general not a single best available technique (BAT), but well a best combination of available techniques to be used (BCAT). We take a fictitious but plausible numerical example in the lime industry. For a hypothetical plant that has to meet a given demand, we build an original technical economic model within which two scenarios are considered : minimizing the private costs and minimizing the generalized costs (private costs plus external costs). In the first case, only the cheapest fuel is used in all kilns. But in the second case, where the environmental external costs are included, fuel switches occur and cleaner techniques are used. Estending the analysis to the choice of kilns, we find that the socially best combination of available techniques (S-BCAT) is not a fixed one : it varies as a function of the external costs. We therefore trace in a single diagram the whole profile of these best techniques as successive solutions of our linear programs. We conclude by stressing that external cost internallization does influence not only the choice of techniques, but also their appropriate use. Moreover, local environmental conditions play a major role in that choice and in determining that use. |
| Keywords: | Best available techniques, eco-efficiency, IPPC |
| JEL: | D20 Q50 |
| Date: | 2006–11–05 |
| URL: | http://d.repec.org/n?u=RePEc:ctl:louvec:2006060&r=env |
| By: | Christian von Hirschhausen |
| Abstract: | The objective of this paper is to analyze the development of US natural gas infrastructure over the last two decades and to discuss its perspectives. In particular, we focus on the relationship between the regulatory framework for the natural gas sector and the development of investment in LNG terminals, interstate pipelines, and storage facilities. We also discuss some cross-sectional investment issues related to financing (cost of capital, financial markets) and regulation (price caps, siting). We conclude that while some improvements in the regulatory framework might enhance investments in the US natural gas sector, there is no reason to be overly concerned about infrastructure investments, resource adequacy, or supply security. |
| Date: | 2006–12 |
| URL: | http://d.repec.org/n?u=RePEc:mee:wpaper:0618&r=env |
| By: | Clevo Wilson; Clem Tisdell (School of Economics and Finance, Queensland University of Technology) |
| Abstract: | Conservation of biodiversity is a complex issue. Apart from the creation of nature reserves, there is a plethora of other factors that are part of this complex web. One such factor is the public knowledge of species. Since public funding is imperative for the conservation of species and creation of reserves for them, it is important to determine the public’s awareness of species and their knowledge about them. In the absence of such awareness and knowledge, it is possible that the public will misallocate their support. In other words, resources may be provided for species that do not need support urgently. We show how availability of balanced information about species helps the public to make rational decisions and to allocate support (e.g. monetary) to species that need it most. Other implications of a ‘wildlife knowledgeable’ public are also discussed. |
| Keywords: | Biodiversity, conservation, Australia’s tropical wildlife, public knowledge, balanced information. |
| URL: | http://d.repec.org/n?u=RePEc:qut:dpaper:188&r=env |
| By: | Gabriel De Paula |
| Abstract: | El objetivo de este trabajo es definir un objeto de estudio que hasta el momento es analizado desde perspectivas que tienen que ver con la ecología y el desarrollo económico, pero que la discusión como factor de conflicto no está dada. Estamos hablando de los recursos naturales. A lo largo del presente se desarrollará el marco conceptual desde el que se circunscribe el análisis de este y otros estudios específicos precedentes. Luego se hará referencia a las amenazas a las que los estados están afectados: la explotación y el riesgo ambiental. Por último se procederá a la identificación de los principales recursos estratégicos. Este documento es el primero de una serie de análisis sobre recursos naturales, desarrollo y conflicto internacional. Considero que el tema es de vital importancia para entender la dinámica de las relaciones internacionales, ya que el uso y control de los recursos naturales estratégicos están en el tope de la agenda de las potencias. |
| Keywords: | natural resources, conflict, strategy, ecology, economic development |
| URL: | http://d.repec.org/n?u=RePEc:cis:recnat:001&r=env |
| By: | Gabriel De Paula |
| Abstract: | El control sobre los recursos naturales, la seguridad y el conflicto en los países de América del Sur, tal el título de la presente investigación, está en la actualidad en el tope de la agenda internacional. La presencia de la problemática en los foros intergubernamentales, en el tercer sector, y en la misma opinión pública da cuenta de que debe estudiarse desde la óptica de las relaciones internacionales. En la investigación abordaré el tema en dos partes. La primera tiene que ver estrictamente con la exploración teórica relacionada a los recursos naturales.En la segunda parte avanzo sobre el estudio de dos casos que llevan como título “El gas natural en Bolivia” y “El agua potable en la Argentina”. Estos dos casos dan cuenta de la problemática que afrontan y afrontarán los países Sudamericanos, y sobre la cual radica mi interés principal. El Objetivo General de la investigación es analizar los hechos conflictivos presentes y potenciales, relacionados con el control y la gestión sobre los recursos naturales estratégicos que existen en la región, tomando como estudio los casos del gas en Bolivia y el agua potable en la Argentina. |
| Keywords: | natural gas, water, natural resources, security, conflict, south america |
| URL: | http://d.repec.org/n?u=RePEc:cis:ebook0:007&r=env |
| By: | Vanhoucke, M. |
| Abstract: | In this paper, we present a meta-heuristic algorithm for the well-known resource-constrained project scheduling problem with discounted cash flows. This optimization procedure maximizes the net present value of project subject to the precedence and renewable resource constraints. The problem is known to be NP-hard. We investigate the use of a enhanced bi-directional generation scheme and a recursive forward/backward improvement method and embed them in a meta-heuristic scatter search framework. We generate a large dataset of project instances under a controlled design and report detailed computational results. The solutions and project instances can be downloaded from a website in order to facilitate comparison with future research attempts. |
| Keywords: | Resource-constrained project scheduling; Net present value; Scatter search |
| Date: | 2006–10–04 |
| URL: | http://d.repec.org/n?u=RePEc:vlg:vlgwps:2006-40&r=env |
| By: | Nahuel Oddone; Leonardo Granato |
| Abstract: | El reclamo de la deuda ecológica se hace hoy en un contexto de crisis ecológica. Una crisis que alcanza tanto al propio mito del desarrollo económico y su capacidad ilimitada de generar riqueza y bienestar, como a la propia teoría económica que la sustenta. "Ya no es posible pensar, como hasta hace poco, que los seres humanos progresan siempre en una dirección positiva y que ese progreso resulta prácticamente ilimitado". En nombre de una confusión interesada entre crecimiento y desarrollo6, los países del Norte y del Sur persisten, por distintas causas, en la destrucción sistématica del medio ambiente. Los estados del Norte por la contaminación industrial y los estados del Sur por la creciente pobreza desestabilizan constantemente los equilibrios ecológicos. Lógicas económico-políticas totalmente absurdas permiten el mantenimiento de esta situación. |
| Keywords: | ecologic debt, economic development, ecologic crisis |
| URL: | http://d.repec.org/n?u=RePEc:cis:recnat:002&r=env |
| By: | Mohamed Abdillahi Bahdon |
| Abstract: | L’objet de cette étude est de présenter un bilan critique du processus de changement politique vers un autre régime politique de la République de Djibouti. Il convient toutefois d’analyser le processus djiboutien dans le temps pour faire ressortir les différents éléments qui ont eu un impact important dans le développement du nouveau régime. La présente étude s’articule autour de deux principaux points, d’une part une analyser du contexte sociopolitique de l’année 1991 et les réformes politiques à la fin de l’année 1992 et d’autre part la mise en place du nouveau régime et la pratique politique institutionnelle. |
| Keywords: | Djibouti, Economy, Policy, reforms |
| URL: | http://d.repec.org/n?u=RePEc:cis:africa:004&r=env |
| By: | Petra Huck (Environmental Economics and Agricultural Policy Group, Technical University of Munich) |
| Abstract: | Differential games link strategic interactions between agents and optimization concerning time. Past and current actions of each player influence all future strategy sets and pay offs through a transition law. Due to high complexity, it is hard to find a Nash-equilibrium within a differential game and it is even harder to get some results in comparative statics. It is the purpose of the paper to describe an approximation routine for an open-loop Nash equilibrium of a simple differential game in exhaustible resources. Excel is applied as it is a wild spread tool. |
| JEL: | A22 C73 Q30 |
| Date: | 2005–04 |
| URL: | http://d.repec.org/n?u=RePEc:tuu:papers:042005&r=env |
| By: | Petra Huck (Environmental Economics and Agricultural Policy Group, Technical University of Munich) |
| Abstract: | Differential games combine strategic interactions between agents and optimization concerning time. Decisions made in the past determine the present and even the future .in pay off as well as in the opportunities available . for oneself and for the rival players, eventually too. Unfortunately, due to high complexity it is hard to find a Nash-equilibrium within a differential game and it is even harder to get some results in comparative statics. It is the purpose of the paper at hand to present findings concerning comparative statics in a differential game discussed by Wacker and Blank (1999). Comparative statics become available due to a routine solving for the open-loop Nash equilibrium for each parameter combination under consideration. A description of the routine . a 4 step simulation run which approximates the equilibrium numerically . was presented in an earlier Working Paper. In the earlier Paper Excel was applied as it is a wild spread tool. Here again Excel, its Solver and Macros constitute the main instruments; they are used to get repeated simulation runs for varying parameter constellations. The findings presented here concern varying allocations in initial stocks. Generalization to comparative statics in further parameters is in progress. |
| JEL: | A22 C73 Q30 |
| Date: | 2005–05 |
| URL: | http://d.repec.org/n?u=RePEc:tuu:papers:052005&r=env |