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on Environmental Economics |
| By: | Jota Ishikawa; Toshihiro Okubo |
| Abstract: | This paper studies greenhouse-gas (GHG) emission controls in the presence of carbon leakage through international firm relocation. The Kyoto Protocol requires developed countries to reduce GHG emissions by a certain amount. Comparing emission quotas with emission taxes, we show that taxes coupled with lower trade costs facilitate more firm relocations than quotas do, causing more international carbon leakage. Thus, if a country is concerned about global emissions, emission quotas would be adopted to mitigate the carbon leakage. Firm relocation entails a trade-off between trade liberalization and emission regulations. Emission regulations may be hampered by trade liberalization, and vice versa. |
| Keywords: | trade liberalization, global warming, Kyoto Protocol, emission tax, emission quota, carbon leakage |
| JEL: | F18 Q54 |
| Date: | 2008–11 |
| URL: | http://d.repec.org/n?u=RePEc:hst:ghsdps:gd08-013&r=env |
| By: | Cankurt, Murat; Miran, Bulent; Gunden, Cihat; Sahin, Ahmet |
| Abstract: | The main purposes of the study were to clarify the conceptual reference of environmental awareness and to investigate the relationship between some individual, socio-economic factors and awareness to environmental issues. In addition, the factors that affect the environmental awareness were also determined. Face to face interviews were done with 975 individuals 25 cities were chosen throughout Turkey, which means at least 2 cities from each region. The models were estimated by the ordered logistic regression. Environmental awareness were evaluated from the standpoints of water, air and soil. Among the pollution categories, people were mostly aware of the pollution in air. In policies related to converting sensitivity to environment to action the Turkish government and institutions should take into account gender, education, income, age, industrial city and number of information source. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saeaed:6807&r=env |
| By: | Thierry, BRECHET (UNIVERSITE CATHOLIQUE DE LOUVAIN, Center for Operations Research and Econometrics (CORE)); Francois, GERARD (UNIVERSITE CATHOLIQUE DE LOUVAIN, Center for Operations Research and Econometrics (CORE)); Henry, TULKENS (UNIVERSITE CATHOLIQUE DE LOUVAIN, Center for Operations Research and Econometrics (CORE)); Jean-Pascal, VAN YPERSELE |
| Abstract: | In this paper we analyze the negotiation strategy of the European Union regarding the formation of an international climate agreement for the post-2012 era. We use game theoretical stability concepts to explore incentives for key players in the climate policy game to join future climate agreements. We compare a minus 20 percent unilateral commitment strategy by the EU with a unilateral minus 30 percent emission reduction strategy for all Annex-B countries. Using a numerical integrated assessment climate-economy simulation model, we find that carbon leakage effects are negligible. Ther EU strategy to reduce emissions by 30% (compared to 1990 levels) by 2020 if other Annex-B countries follow does not induce participation of the USA with a similar 30% reduction commitement. However, the model shows that an appropriate initial allocation of emission allowances may stabilize a larger and more ambitious climate coalition than the Kyoto Protocol in its first commitment period. |
| Keywords: | Climate change, Coalition theory, Integrated assessment model, Kyoto protocol |
| JEL: | C6 C7 H4 Q5 |
| Date: | 2008–12–04 |
| URL: | http://d.repec.org/n?u=RePEc:ctl:louvec:2008038&r=env |
| By: | CHANDER, Parkash; MUTHUKRISHNAN, Subhashini |
| Abstract: | We analyze the effect of collective action by green/environmentally aware consumers on ambient environmental quality and market equilibrium. We consider a model with two types of consumers who differ in their willingness-to-pay for a good available in two different environmental qualities, and two competing firms: one selling the good of high environmental quality and the other of low environmental quality. We show that collective action by green consumers reduces competition and leads to higher prices for the good of both qualities. Though it improves the ambient environmental quality, it may reduce the welfare of both types of consumers. |
| Keywords: | green consumers, collective action, environmental quality, differentiated duopoly, firm profitability |
| JEL: | H23 Q20 L13 |
| Date: | 2007–08 |
| URL: | http://d.repec.org/n?u=RePEc:cor:louvco:2007058&r=env |
| By: | Goodwin, Neva |
| Abstract: | This paper starts with the question of whether climate change will require a significant reduction of consumption among the richer people in the world, and ends with the most optimistic picture the author can conjure up, of the world in the year 2075. That hopeful picture is of a world in which inequalities Â€Ó among and within nations Â€Ó have been substantially reduced. The challenges and adjustments confronting humanity in the coming decades provide an opportunity that could be used to mitigate climate change in ways that can improve the circumstances of the poor. Ecological reasons to reduce throughput of energy and materials in economic systems urge the abandonment of high-consumption life-styles. The 21st century will be an era of many losses, but it is conceivable that societies will successfully make the transition from goals of economic growth, as understood in the 20th century, to goals of maintaining and increasing sustainable well-being. |
| Keywords: | Environmental Economics and Policy, Institutional and Behavioral Economics, International Development, International Relations/Trade, Political Economy, Resource /Energy Economics and Policy, |
| Date: | 2008–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:tugdwp:37711&r=env |
| By: | Sonia Ben Kheder (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I); Natalia Zugravu (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I) |
| Abstract: | Although based on theoretical foundations, the pollution haven hypothesis stating that heterogenous environmental regulations between countries influence multinational firms' location decisions, has never been clearly proven empirically. In this study, we reexamine this hypothesis by a fresh take on both its theoretical and empirical aspects. While applying a geographic economy model on French firm-level data, we confirm the pollution haven hypothesis for a global sample. Through sensitivity analysis, we validate it for Central and Eastern European countries, emerging and high-income OECD countries, but not for the major part of the Commonwealth of Independent States countries. Finally, we show that the pollution haven hypothesis is confirmed in the strongest manner for emerging economies. |
| Keywords: | FDI, environmental regulation, economic geography, pollution haven hypothesis. |
| Date: | 2008–04 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00344845_v1&r=env |
| By: | Alvarez, Sergio; Larkin, Sherry L. |
| Abstract: | Protected undeveloped areas are an important tool for land conservation in developing nations. Efficient land allocation decisions and resource management requires knowledge of non-market benefits. Using travel cost and contingent valuation data from on-site interviews and secondary data on visitation, this study will value a national park in Columbia. |
| Keywords: | consumer surplus, non-market valuation, willingness to pay, zonal travel cost, International Development, Resource /Energy Economics and Policy, Q24, Q26, Q57, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saeaed:6732&r=env |
| By: | Lucas W. Davis; Matthew E. Kahn |
| Abstract: | Previous studies of trade and the environment overwhelmingly focus on how trade affects where goods are produced. However, trade also affects where goods are consumed. In this paper we describe a model of trade with durable goods and non-homothetic preferences. In autarky, low-quality (used) goods are relatively inexpensive in high-income countries and free trade causes these goods to be exported to low-income countries. We then evaluate the environmental consequences of this pattern of trade using evidence from the North American Free Trade Agreement. Since trade restrictions were eliminated for used cars in 2005, over 2.5 million used cars have been exported from the United States to Mexico. Using a unique, vehicle-level dataset, we find that traded vehicles are dirtier than the stock of vehicles in the United States and cleaner than the stock in Mexico, so trade leads average vehicle emissions to decrease in both countries. Total greenhouse gas emissions increase, primarily because trade gives new life to vehicles that otherwise would have been scrapped. |
| JEL: | F18 |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:14565&r=env |
| By: | Åsa Löfgren (Department of Economics, Göteborg University - University of Göteborg); Katrin Millock (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris); Céline Nauges (LERNA - INRA - INRA - Université des Sciences Sociales - Toulouse I) |
| Abstract: | We estimate hurdle rates for firms' investments in pollution abatement technology, using ex post data. The method is based on a structural option value model where the future price of polluting fuel is the major source of uncertainty facing the firm. The empirical procedure is illustrated using a panel of firms from the Swedish pulp and paper industry, and the energy and heating sector, and their sulfur dioxide emissions over the period 2000-2003. The results indicate that hurdle rates of investment vary from 2.7 to 3.1 in the pulp and paper industry, and from 3.4 to 3.6 in the energy and heating sector depending on econometric specification. |
| Keywords: | option value; oil price uncertainty; abatement investment; sulfur emissions; pulp and paper industry; energy and heating sector |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00343702_v1&r=env |
| By: | Åsa Löfgren (Department of Economics, Göteborg University - University of Göteborg); Katrin Millock (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris); Céline Nauges (LERNA - INRA - INRA - Université des Sciences Sociales - Toulouse I) |
| Abstract: | We estimate hurdle rates for firms' investments in pollution abatement technology, using ex post data. The method is based on a structural option value model where the future price of polluting fuel is the major source of uncertainty facing the firm. The empirical procedure is illustrated using a panel of firms from the Swedish pulp and paper industry, and the energy and heating sector, and their sulfur dioxide emissions over the period 2000-2003. The results indicate that hurdle rates of investment vary from 2.7 to 3.1 in the pulp and paper industry, and from 3.4 to 3.6 in the energy and heating sector depending on econometric specification. |
| Keywords: | option value; oil price uncertainty; abatement investment; sulfur emissions; pulp and paper industry; energy and heating sector |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-00343702_v1&r=env |
| By: | Baek, Jungho; Cho, Yong Sung; Koo, Won W. |
| Abstract: | The dynamic relationships among trade, income and the environment for developed and developing countries are examined using a cointegration analysis. Results suggest that trade and income growth tend to increase environmental quality in developed countries, whereas they have detrimental effects on environmental quality in most developing countries. It is also found that for developed countries, the causal relationship appears to run from trade and income to the environment ” a change in trade and income growth causes a consequent change in environmental quality, and the opposite relationship holds for developing countries. |
| Keywords: | Developed countries, Developing countries, Environmental quality, Globalization, Time-series analysis, Trade, |
| Date: | 2008–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nddaae:37342&r=env |
| By: | Torpen, David R.; Hearne, Robert R. |
| Abstract: | Effective and efficient water management implies understanding the wants and desires of the human populations through its key stakeholder groups. As a valuable resource that involves many regulating and managing players, the Red River of the North basin is an excellent case for studying stakeholder preferences and presenting them to involved managers. The primary goal of this research was to analyze stakeholder preferences for hypothetical Red River basin fresh water management alternatives. Specific objectives included comparing preferences across key stakeholder groups and estimating residents€٠willingness to pay for additional water management programs. Initial experts€٠and focus group meetings were used to select appropriate attributes and levels to be used within a stated choice experiments analysis. The final list of attributes included: additional recreation opportunities, water supply augmentation projects, water quality initiatives, and the type of institution that would be trusted. An additional levy upon annual property taxes, ranging from $20 to $240, was used as the price of these additional programs. Mail surveys were sent to three main stakeholder groups: informed stakeholders, who had attended the Red River Basin Commission water management conference; decision-makers, including county commissioners and mayors in basin constituencies; and random residents. An overall response rate of 34% was achieved. One interesting result was the general homogeneity of opinions across stakeholder groups. A log likelihood test failed to reject the hypothesis that stakeholders€٠preferences were the same across groups. Results from the pooled nested logit model show younger respondents, males, non-farmers and those categorized as pro resource conservation in favor of additional water management projects. Initiatives that were favored by respondents included: phosphorous and nitrogen reduction and enhanced fishery management. Because the population of random residents did not demonstrate a preference for any additional water management option as opposed to the status quo, willingness to pay was not estimated. |
| Keywords: | choice experiments, stakeholder analysis, Red River of the North, stated preferences, water resources management, Environmental Economics and Policy, Land Economics/Use, Resource /Energy Economics and Policy, |
| Date: | 2008–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nddaae:36774&r=env |
| By: | Raouf, BOUCEKKINE (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES)); Jacek B., KRAWCZYK; Thomas, VALLEE |
| Abstract: | Consider a country with two regions that have developed differently so that their current levels of energy efficiency differ. Each regionÕs production involves the emission of pollutants, on which a regulator might impose restrictions. The restrictions can be related to pollution standards that the regulator perceives as binding the whole country (e.g., enforced by international agreements like the Kyoto Protocol). We observe that the pollution standards define a common constraint upon the joint strategy space of the regions. We propose a game theoretic model with a coupled constraints equilibrium as a solution to the regulatorÕ s problem of avoiding excessive pollution. The regulator can direct the regions to implement the solution by using a political pressure, or compel them to emply it by using the coupled constraintÕs Lagrange multipliers as taxation coefficients. However, to implement the solution, a coupled constraints equilibrium needs to exist and must also be unique. We consider a stylised model that possesses these properties, of the Belgian regions of Flanders and Wallonia. We analyse the regional production levels, which result from the equilibrium, as a function of the pollution standards and of the sharing rules for the satisfaction of the constraint |
| Date: | 2008–12–04 |
| URL: | http://d.repec.org/n?u=RePEc:ctl:louvec:2008035&r=env |
| By: | Nehring, Richard; Vialou, Alexandre; Erickson, Kenneth; Sandretto, Carmen |
| Abstract: | The share of corn used in ethanol production has been grownig rapidly. USDA predicts that more than 30 percent of the corn crop will be used for ethanol production in 2009/2010. Expanded corn acreage contributes to the application of more fertilizer and is likely to introduce a larger volume of nutrients into the environment. This study found that an increase in ethanol production is consistent with a significant increase in quality-adjusted fertilizer use in selected corn states. |
| Keywords: | quality-adjusted fertilizer, corn production, ethanol, excess nutrients, Crop Production/Industries, Environmental Economics and Policy, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saeaed:6736&r=env |
| By: | Orr, Leanne M; Stevens, Mark; Mullen, John D |
| Abstract: | Research into IPM technologies has been conducted by NSW DPI for over 20 years. Evaluating the returns from investment in specific research and development projects is an important component of the NSW DPI science and research program. An economic evaluation has been conducted of IPM in managing invertebrate pests in rice in NSW. We found that there has been widespread adoption of many IPM practices amongst NSW rice growers leading to a flow of economic benefits to the rice industry and the community. Important environmental and human health benefits were also identified. A benefit-cost ratio of 9.05 was calculated for the return to NSW DPI investment in rice invertebrate pests IPM research. The net present value of the benefits of this research to 2020 was $67.9 million. Important environmental and human health benefits were not valued nor were €سpillover€٠benefits to other States. |
| Keywords: | benefit cost analysis, rice, IPM, invertebrate pests, evaluation, Crop Production/Industries, Environmental Economics and Policy, Farm Management, Production Economics, Q160, |
| Date: | 2008–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nswprr:45632&r=env |
| By: | Orr, Leanne M; McDougall, Sandra; Mullen, John D |
| Abstract: | Research into IPM technologies has been conducted by NSW DPI for over 20 years. Evaluating the returns from investment in specific research and development projects is an important component of the NSW DPI science and research program. An economic evaluation has been conducted of IPM in managing invertebrate pests in lettuce in NSW. We found that there has been widespread adoption of IPM practices amongst NSW lettuce growers leading to a flow of economic benefits to the lettuce industry and the community. Important environmental and human health benefits were also identified. A benefit-cost ratio of 2 was calculated for the return to NSW DPI investment in lettuce IPM research which while satisfactory, is lower than returns calculated for other agricultural R&D. It does not include €سpillover€٠benefits to other States nor have human health or environmental benefits been valued. |
| Keywords: | research, benefit-cost, evaluation, IPM (Integrated Pest Management), lettuce, Crop Production/Industries, Environmental Economics and Policy, Farm Management, Production Economics, Q160, |
| Date: | 2008–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nswprr:45631&r=env |
| By: | Julien Chevallier; Johanna Etner; Pierre-André Jouvet |
| Abstract: | An increase in the demand for agricultural goods leads to the use of more intensive cultivation methods. Though Ricardo sees no difficulties in the intensification process, their existence is revealed by the possible occurrence of multiple equilibria. A general theory of intensive rent is based on a formal parallel with single-product systems without land. |
| Keywords: | Firm behavior, Tradable permits, Policy risk, EU ETS |
| JEL: | D21 D80 Q58 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2008-25&r=env |
| By: | Pierre-André Jouvet; Pierre Pestieau; Grégory Ponthière |
| Abstract: | This paper re-examines the spaceship problem, i.e. the design of the optimal population under the environmental constraint of a fixed area available for life, by focusing on the dilemma between adding new beings and extending the life of existing beings. For that purpose, we characterize, under the assumption that individual lifetime welfare depends positively on the length of life but negatively on population density, the preference ordering of a utilitarian planner over lifetime-equal histories, i.e. pairs of initial population size and survival conditions yielding an equal number of life periods. It is shown that a Benthamite planner is not necessarily indifferent between lifetime-equal histories, and that a Millian utilitarian planner prefers lifetime-equal histories yielding the smallest population with the longest life. The solutions under Critical-level and Number-dampened utilitarianisms are also shown to differ significantly. |
| Keywords: | environmental congestion, fertility, longevity, population ethics, utilitarianism |
| JEL: | D63 Q56 Q57 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2008-28&r=env |
| By: | Howry, Sierra; Stoecker, Arthur; Storm, Daniel; White, Michael |
| Abstract: | Changes in management practices are often proposed to reduce phosphorus loading from a watershed due to over application of poultry litter. This study determines the choice, location, and level of each best management practice in the watershed to meet a Total Maximum Daily Load and margins of safety at least cost. |
| Keywords: | best management practice, phosphorus runoff, poultry litter, Target MOTAD, Environmental Economics and Policy, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saeaed:6793&r=env |
| By: | Kemper, Nathan; Goodwin, H.L., Jr.; Mozaffari, Morteza |
| Abstract: | The export of poultry litter by baling efficiently packages litter for long-term storage and transportation. Use of baled poultry litter to supply the recommended rates of P and K and a portion of the N rate appears to be a feasible nutrient management strategy for cotton. |
| Keywords: | poultry waste management, cotton production, fertilizer, Crop Production/Industries, Environmental Economics and Policy, Q15, Q53, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saeaed:6809&r=env |
| By: | Kim, Taeyoon; Kenkel, Phil |
| Abstract: | Drought impact both producers and agribusinesses. This study investigates the impacts of the 2004-2007 droughts on Oklahoma grain handling and fertilizer supply firms. The results indicated an average decline in firm revenues of 30%. Individual firms had single year revenue declines of 85% and drought period declines of 75%. |
| Keywords: | Agribusiness, Environmental Economics and Policy, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saeaed:6844&r=env |
| By: | John H. Y. Edwards (Department of Economics, Tulane University); Christian Langpap (Department of Agricultural and Resource Economics, Oregon State University) |
| Abstract: | Much of the world population, particularly in developing countries, still relies on firewood to meet basic energy needs. The resulting indoor air pollution can have severe health consequences, particularly for young children who spend considerable time in close proximity to the fire while their mothers cook. In this paper we use data from a household survey to examine gas stove adoption, firewood consumption, and the resulting effects on the health of young children in Guatemala. Our findings suggest that cooking with firewood has significant negative impacts on children's respiratory health. We also find strong evidence that these impacts go well beyond respiratory problems and have much broader health effects. Simulation results indicate that policies which attempt to reduce the consumption of wood and/or accelerate the adoption of LPG may not be as effective at improving respiratory health as policies that target cooking habits to directly attempt to reduce exposure by young children. However, broader health effects are more effectively addressed by policies aimed directly at eliminating the use of wood fuel. |
| Keywords: | indoor air pollution, health, children, fuel transition, firewood, Guatemala |
| JEL: | Q53 Q56 D13 I12 O13 |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:tul:wpaper:0803&r=env |
| By: | Owen, Ann L.; Videras, Julio; Wu, Stephen |
| Abstract: | This paper examines the influence of community characteristics on self-proclaimed environmentalism. We find that the composition of a community affects the likelihood that a person claims to be a strong environmentalist, even after controlling for individual characteristics and pro-environment behaviors. Individuals are more likely to definitely agree they are strong environmentalists if they live in areas where a large share of the population has post-graduate degrees and if they live in heavily Democratic areas or heavily Republican areas. These community effects occur only when individuals are predisposed to take on an environmental identity. |
| Keywords: | identity; environmentalism; communicty effects |
| JEL: | Q5 Z13 |
| Date: | 2008–12–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:12054&r=env |
| By: | Osamu Saito |
| Abstract: | This paper surveys changing interrelationships between man and the earth's forest cover over the past several centuries. The focus is on the interplay between population increase, deforestation and afforestation at both ends of Eurasia. By looking at three numerical indicators-percentage forested, per capita forest resources and the population elasticity of deforestation, Japan is compared with Lingnan, south China, and the East Asians with two European countries, England and France. Based on the East-West comparisons and on somewhat more detailed intra-Asian comparisons between China and Japan with respect to market linkages and the role of the state, the paper examines the proposition made by Ken Pomeranz that although both ends of Eurasia were ecologically constrained at the end of the early modern period, East Asia's pressure on forest resources was eprobably not much worsef than in the West. |
| Date: | 2008–10 |
| URL: | http://d.repec.org/n?u=RePEc:hst:ghsdps:gd08-009&r=env |