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on Environmental Economics |
| By: | Tol, Richard S. J. (ESRI) |
| Keywords: | International climate policy; greenhouse gas emission reduction |
| JEL: | Q54 |
| Date: | 2009–03 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp285&r=env |
| By: | 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); Angels Xabadia (Department of Economics - University of Girona); David Zilberman (Department of Agricultural and Ressource Economics - University of California, Berkeley) |
| Abstract: | With the development of modern information technologies, relying on nanotechnologies and remote sensing, a number of systems can be envisaged that allow for monitoring of the negative externalities generated by producers, consumers or travelers - road pricing schemes or individual emission meters for automobiles are two examples. In the paper, we analyze a dynamic model of stock pollution when the regulator has incomplete information on emissions generated by heterogeneous agent. The paper's contribution is to explicitly study a decentralized policy for adoption of monitoring equipment over time. Each agent has to choose between paying a fixed fee or installing monitoring technology and paying a tax on actual emissions. We determine the second-best tax rates, the pattern of monitoring technology adoption, and identify conditions for the voluntary diffusion of monitoring technologies over time. |
| Keywords: | Externalities ; environmental taxation ; monitoring technology adoption ; diffusion ; nanotechnologies |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-00367888_v1&r=env |
| By: | Sandrine Mathy (CIRED - Centre international de recherche sur l'environnement et le développement - CIRAD : UMR56 - CNRS : UMR8568 - Ecole des Hautes Etudes en Sciences Sociales - Ecole Nationale des Ponts et Chaussées - Ecole Nationale du Génie Rural des Eaux et des Forêts); Céline Guivarch (CIRED - Centre international de recherche sur l'environnement et le développement - CIRAD : UMR56 - CNRS : UMR8568 - Ecole des Hautes Etudes en Sciences Sociales - Ecole Nationale des Ponts et Chaussées - Ecole Nationale du Génie Rural des Eaux et des Forêts) |
| Abstract: | One of the current main objective of international negotiations on climate change aims at enlarging the coordination regime to developing countries (DCs), and particularly to emerging countries. The international coordination system built at the Kyoto Conference relies on a coordination system based on a purely climate centric approach which shows irreconcilable contradictions between climate and development issues. This article aims at evaluatingpossible pathways implementing synergies between climate policies and development policies in order to create an incentive towards DCs to take part in climate mitigation. We focus on an illustrative example on India.When most reference scenarios postulate rapid energy decoupling of the GDP and rapid decarbonisation of DCs economies in the future, this article elaborates, with the IMACLIM-R model, a baseline taking into account weaknesses and current disequilibria of the Indian technico-economic system such as the high dependency on imported energy, or the structural shortage in electricity. We show why a purely climate centric approach (quota allocation), adopted to commit with a world objective of tabilization to 550ppm, induce very high transition costs in spite of significant financial transfers. On the contrary, a strategy based on the research of synergies between the reduction of these disequilibria, and the mitigation of GHG emissions is investigated in the power sector, which presents the biggest potential of no-regret measures. This permits to drop down transition costs applied to the Indianeconomy by improving the overall energy efficiency. An economic and environmental evaluation of this alternative scenario is lead. |
| Keywords: | India, domestic policies and measures, climate policies, long term scenarios, international egotiations, power sector, climate regime, policies and measures, energy efficiency, realistic baselines, peak-oil |
| Date: | 2009–03–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00366276_v1&r=env |
| By: | Imran Habib Ahmad |
| Abstract: | The climate change debate raises the issue of often identified, but as yet little explored, requirement to incorporate climate policy into other policy sectors, often termed climate “mainstreaming” or climate policy integration (CPI). This paper explores the imperative for CPI, the state of current understanding, and proposals for implementation at the crucial national policy scale. The paper draws on the longer-standing field of environmental policy integration, noting that literature’s scant coverage of climate issues but its greater focus on policy and administrative structures and processes, and concludes that more attention needs to be given to these implementation mechanisms for CPI. |
| Keywords: | Climate change, public policy, environment, sustainable development, international cooperation |
| JEL: | F59 H11 Q54 Q56 Q58 |
| Date: | 2009–03 |
| URL: | http://d.repec.org/n?u=RePEc:une:wpaper:73&r=env |
| By: | Timilsina, Govinda R.; Dulal, Hari B. |
| Abstract: | This study reviews regulatory instruments designed to reduce environmental externalities from the transport sector. The study finds that the main regulatory instruments used in practice are fuel economy standards, vehicle emission standards, and fuel quality standards. Although industrialized countries have introduced all three standards with strong enforcement mechanisms, most developing countries have yet to introduce fuel economy standards. The emission standards introduced by many developing countries to control local air pollutants follow either the European Union or United States standards. Fuel quality standards, particularly for gasoline and diesel, have been introduced in many countries mandating 2 to 10 percent blending of biofuels, 10 to 50 times reduction of sulfur from 1996 levels, and banning lead contents. Although inspection and maintenance programs are in place in both industrialized and developing countries to enforce regulatory standards, these programs have faced several challenges in developing countries due to a lack of resources. The study also highlights several factors affecting the selection of regulatory instruments, such as countries'environmental priorities and institutional capacities. |
| Keywords: | Transport Economics Policy&Planning,Transport and Environment,Energy Production and Transportation,Environmental Economics&Policies,Environment and Energy Efficiency |
| Date: | 2009–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4867&r=env |
| By: | Lucas W. Davis (University of Michigan); Matthew E. Kahn (University of California, Los Angeles) |
| 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-chomothetic preferences. In autarky, 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 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. |
| Keywords: | trade, environment, NAFTA, consequences |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:mie:wpaper:584&r=env |
| By: | van Kooten, G. Cornelis; Timilsina, Govinda R. |
| Abstract: | This study reviews the prospects of wind power at the global level. Existing studies indicate that the earth's wind energy supply potential significantly exceeds global energy demand. Yet, only 1 percent of the global electricity demand is currently derived from wind power despite 40 percent annual growth in wind generating capacity over the past 25 years. More than 98 percent of total current wind power capacity is installed in the developed countries plus China and India. It has been estimated that wind power could supply 7 to 34 percent of global electricity needs by 2050. However, wind power faces a large number of technical, economic, financial, institutional, market, and other barriers. To overcome these barriers, many countries have employed various policy instruments, including capital subsidies, tax incentives, tradable energy certificates, feed-in tariffs, grid access guarantees and mandatory standards. Besides these policies, climate change mitigation initiatives resulting from the Kyoto Protocol (e.g., CO2-emission reduction targets in developed countries and the Clean Development Mechanism in developing countries) have played a significant role in promoting wind power. |
| Keywords: | Energy Production and Transportation,Carbon Policy and Trading,Windpower,Environment and Energy Efficiency,Energy and Environment |
| Date: | 2009–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4868&r=env |
| By: | Legge, Thomas (German Marshall Fund of the United States); Scott, Susan (ESRI) |
| Date: | 2009–03 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp284&r=env |
| By: | Horn, Henrik (Research Institute of Industrial Economics (IFN)) |
| Abstract: | The basic legal instrument in the WTO Agreement regulating domestic environmental policies is the GATT National Treatment (NT) provision. The practical ambit of this clause is largely determined by the allocation of the burden of proof (BoP) in NT disputes. The purpose of this paper is to examine the role of this burden for trade liberalization and for the environment, in a situation where imports may cause environmental damage. The paper finds that there may be a tension between NT and environmental concerns, but that this is not likely to arise in the context of severe threats to the environment. In any event, relieving regulating countries of the BoP will have fundamentally unclear implications for the environment. |
| Keywords: | National treatment; Burden of proof; Environment; GATT; WTO; Trade agreements |
| JEL: | F13 Q56 |
| Date: | 2009–03–02 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:0791&r=env |
| By: | Martin Daniel Siyaranamual (Department of Economics, Padjadjaran University) |
| Abstract: | To address the surprising lack of research in the area of environmental migration, this paper reviews the existing literature and proposes two basic, two region, and general equilibrium models: a closed economy and a small open economy where migration occurs between regions. The models show that migration increases welfare in the rural region, characterized by a tragedy of the commons production function, but does not affect welfare in the region with a constant returns to scale production function. The paper also provides an economic definition of an environmental refugee in the respect of an environmental migrant. |
| Keywords: | environmental migrant |
| JEL: | Q10 |
| Date: | 2009–03 |
| URL: | http://d.repec.org/n?u=RePEc:unp:wpaper:200901&r=env |
| By: | Martin Beckenkamp (Max Planck Institute for Research on Collective Goods) |
| Abstract: | The structure of a social dilemma lies behind many environmental problems. Mingling temporal aspects of resources with the structure of the social dilemma often leads to wrong conclusions. Therefore, it is worth analytically separating temporal aspects from structural aspects of the dilemma. This article concentrates solely on the structural aspects of the dilemma and the grades of complexity with respect to the number and stakes of the people involved, as well as the asymmetry of endowments and the salience of the optimal use of the resource in order to come close to the welfare optimum. Dilemmas with sufficient complexity are extremely vulnerable to individual defectors, and therefore institutions are necessary for the solution of the dilemma. Consequently, research in environmental psychology should not only target the individuals, but focus on institutional design with respect to (1) the structural diagnosis of environmental dilemmas; (2) methods that provide an insight into the structural problem of environmental dilemmas; (3) the impact of institutions on internalizing norms; and (4) the impact of structural knowledge about the dilemma of accepting institutions that help to solve the environmental dilemma. In analogy to software-ergonomics, psychology should initiate research in institutional ergonomics that helps to create addressee-friendly institutions. |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:mpg:wpaper:2009_01&r=env |
| By: | Sandrine Mathy (CIRED - Centre international de recherche sur l'environnement et le développement - CIRAD : UMR56 - CNRS : UMR8568 - Ecole des Hautes Etudes en Sciences Sociales - Ecole Nationale des Ponts et Chaussées - Ecole Nationale du Génie Rural des Eaux et des Forêts); Céline Guivarch (CIRED - Centre international de recherche sur l'environnement et le développement - CIRAD : UMR56 - CNRS : UMR8568 - Ecole des Hautes Etudes en Sciences Sociales - Ecole Nationale des Ponts et Chaussées - Ecole Nationale du Génie Rural des Eaux et des Forêts) |
| Abstract: | Reference GHG emissions scenarios are critical for estimates of the costs of stabilization and for climate policy recommendations. But recently, existing reference scenarios, notably the SRES, have been the target of criticisms that question their relevance in the light of current emissions trends, dispute the suitability, for developing countries, of the modeling methodologies used and suggest they convey too optimistic views on spontaneous energy decoupling of emerging countries economies. This article focuses on an illustrative example on India. It proposes an alternative reference scenario built with a modeling framework representing as realistically as possible the processes driving energy intensity and carbon intensity changes, in particular accounting for the interactions between energy systems and economic constraints and capturing the sub-optimalities of the energy sector. The mechanisms leading to moderate energy decoupling in this alternative scenario are analysed. From a methodological point of view, our results call for the improvement of the realism of modeling tools for scenarios elaboration. From a mitigation point of view, it appears that the challenge for climate policies to lift the barriers to the diffusion of energy efficiency improvement in India is considerable, but we identify a potential for synergies between development policies and climate policies. |
| Keywords: | India; energy-GDP decoupling; investment constraint; power sector; reference scenario |
| Date: | 2009–02–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00366274_v1&r=env |
| By: | Antoine D'Autume (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); John M. Hartwick (Queen's University - Queen's University, Kingston, Ontario); Katheline Schubert (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) |
| Abstract: | Following Stollery [1998], we extend the Solow, Dasgupta-Heal model to analyze the effects of global warning. The rise of temperature is caused by the use of fossil resources so that the temperature level can be linked to the remaining stock of these resources. The rise of temperature affects both productivity and utility. We characterize optimal solutions for the maximin and zero-discounting cases and present closed form solutions for the case where the production function and utility function are Cobb-Douglas, and the temperature level is an exponential function of the remaining stock of resources. We show that a greater weight of temperature in the preferences or a larger intertemporal elasticity of substitution both lead to postpone resource use. |
| Keywords: | Maximin ; zero discounting ; global warming |
| Date: | 2009–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-00367917_v1&r=env |
| By: | Antoine D'Autume (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); Katheline Schubert (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) |
| Abstract: | This paper studies the undiscounted utilitarian optimal paths of the canonical Dasgupta-Heal-Solow model when the stock of natural capital is a direct argument of well-being, besides consumption. We use a Keynes-Ramsey rule wich yields a generalization of Hartwick's rule : if society has a zero discount rate but is ready to accept intertemporal substitution, net investment should not be zero as in the maximin case but should be positive, its level depending on the distance between the current and the long run bliss level of utility. We characterize solutions in the Cobb-Douglas utility and production case, and analyse the influence of the intertemporal elasticity of substitution on the time profile of the optimal paths. We show that, in the Cobb-Douglas case, the ratio of the values of the resource and capital stocks remains constant along the optimal path, and is independent of initial conditions. |
| Keywords: | Exhaustible resources ; Hartwick's rule ; intertemporal substitution |
| Date: | 2009–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-00367910_v1&r=env |
| By: | Jules-Eric Tchachet Tchouto (Centre d'Analyse et de Recherche en Économie (CARE), Université de Rouen, France); Anaïs Delbosc (Mission Climat de la Caisse des Dépôts et Consignations (CDC) – Paris.- France); Luc Savard (GREDI, Faculte d'administration, Université de Sherbrooke) |
| Abstract: | Cette étude porte sur l’analyse de la réglementation applicable dans le cadre des politiques environnementales en France, à la lumière de la théorie économique. Elle dresse un bilan de l’évolution des pratiques et se focalise d’avantage sur le fonctionnement du système de permis d’émission négociables. La réalisation de cet état des lieux a exigé une démarche complémentaire en réponse à la nécessité de rigueur attendue dans un tel exercice : à savoir le déplacement sur le terrain. En effet, pour un sujet d’une telle envergure, la compréhension de la pratique, les retours d’expériences peuvent apporter d’avantage de précisions dans l’appréhension du fonctionnement des instruments mis en place. Ainsi, l’initiation de nombreux entretiens, rencontres et échanges avec certains acteurs institutionnels clés en activité au cœur des politiques environnementales développées dans cette étude se sont avérées – à posteriori – indispensables, et par ailleurs très fructueuses. |
| Keywords: | Global warming, environmental policies, tradable permits. |
| JEL: | Q52 Q54 Q58 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:shr:wpaper:09-09&r=env |
| By: | Julio Peña Torres (ILADES-Georgetown University, Universidad Alberto Hurtado); Mabyr Valderrama (ILADES-Georgetown University) |
| Abstract: | This study examines factors conditioning the fishing location decisions of the Chilean fleet operating in the South-east Pacific straddling jack mackerel fishery, considering voyage data for the1987-2004 period. As from the early 1990s, this fleet began to move beyond the 200 nm zone, responding to changes in the spatial distribution of the species. It is thought that this change dynamics may have been intensified by the strong 1997-98 El Niño event. The return of distant water-fishing-nation’s fleets to this fishery, as from the year 2000, has increased interest in understanding effects related with this spatial change dynamics. This paper is an econometric analysis of the effect of environmental, regulatory, technological and economic factors on the fishing location decisions of the Chilean fleet working in this fishery. The possible influence of El Niño events on the spatial operations of this fleet is tested. |
| JEL: | Q22 C23 C25 |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:ila:ilades:inv217&r=env |
| By: | Colin Vance; Markus Mehlin |
| Abstract: | In addition to efficiency standards and consumer information, car-related taxes constitute one of three pillars of the European Commission’s strategy to reduce CO2 emissions from passenger cars.A longstanding question concerns the effectiveness of such taxes in determining the car-purchasing behavior of households. Several recent studies suggest that purchases are primarily determined by retail costs rather than by taxes, the latter of which are typically incurred over the lifetime of the car. Using panel data on new-car registrations in Germany, Europe’s largest car market, the present paper addresses this issue with an econometric analysis of the impact of fuel costs and circulation taxes on car market shares. By employing a nested logit model that explicitly recognizes the segmented structure of the car market, the analysis takes account of correlation in unobserved shocks among cars belonging to the same market segment. Moreover, given the panel structure of the data, a fixed effects estimator is employed to control for the influence of unobservable, timeinvariant automobile attributes that could otherwise induce biases in the estimated coefficients. Contrasting with much of the evidence garnered to date, the results suggest that circulation taxes and fuel costs significantly determine car market shares, and hence may serve as effective instruments in influencing the composition of the car fleet and associated CO2 emissions. |
| Keywords: | Fuel tax, circulation tax, car market, Germany, panel data, nested logit model |
| JEL: | C51 L91 Q48 |
| Date: | 2009–02 |
| URL: | http://d.repec.org/n?u=RePEc:rwi:repape:0089&r=env |
| By: | Anonymous |
| Abstract: | This 2008 report provides an economic overview of the Canadian agriculture and agri-food system. It is meant to be a multi-purpose reference document to provide: an introduction to the agriculture and agri-food system; a snapshot of structural changes that are occurring throughout the system in response to various factors; and background data and information to inform public discussions on challenges and opportunities facing the Canadian agriculture and agri-food system. The 2008 report begins with a special feature describing recent developments in global commodity markets when prices rose dramatically over the past year. It continues by reviewing each segment of the system, going upstream from consumers to food distribution, food, beverage and tobacco (FBT) processing, primary agriculture and input suppliers. It concludes with a review of government expenditures in support of agriculture including measures of international support. It introduces a new section this year that considers the natural resources available in Canada and the environmental impacts of agriculture on the environment. |
| Keywords: | Agriculture, Agri-food, Gross Domestic Product, GDP, Employment, Exports, Imports, Innovation, Inflation, Farm typology, Farm income, Government support, Program payments, Profitability, Processing, Concentration, Water, Agribusiness, Agricultural and Food Policy, Agricultural Finance, Consumer/Household Economics, Demand and Price Analysis, Environmental Economics and Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, International Relations/Trade, Labor and Human Capital, Land Economics/Use, Livestock Production/Industries, Marketing, Production Economics, Productivity Analysis, Public Economics, Research and Development/Tech Change/Emerging Technologies, Resource /Energy Economics and Policy, |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaacem:46805&r=env |
| By: | Théophile T. Azomahou; Raouf Boucekkine; Phu Nguyen-Vanc |
| Abstract: | We develop a general equilibrium multi-sector vintage capital model with energy-saving technological progress and an explicit energy market to study the impact of investment subsidies on investment and output. Energy and capital are assumed to be complementary in the production process. New machines are less energy consuming and scrapping is endogenous. The intermediate inputs sector is modelled à la Dixit-Stiglitz (1977). Two polar market structures are considered for the energy market, free entry and natural monopoly. The impact of imperfect competition on the outcomes of the decentralized equilibria are deeply characterized. We identify an original paradox: adoption subsidies may induce a larger investment into cleaner technologies either under free entry or natural monopoly. However, larger diffusion rates do not necessarily mean lower energy consumption at equilibrium, which may explain certain empirical puzzles. |
| Keywords: | Energy-saving technological progress; vintage capital; market imperfections; natural monopoly; investment subsidies |
| JEL: | O40 E22 Q40 |
| Date: | 2009–02 |
| URL: | http://d.repec.org/n?u=RePEc:gla:glaewp:2009_06&r=env |