nep-env New Economics Papers
on Environmental Economics
Issue of 2009‒03‒28
fifty-four papers chosen by
Francisco S.Ramos
Federal University of Pernambuco

  1. Assessing the environmental externalities from biofuels in Australia By Cuevas-Cubria, Clara
  2. The impact of symbolic and substantive actions on environmental legitimacy By Berrone, Pascual; Gelabert, Liliana; Fosfuri, Andrea
  3. Household perceptions of climate change and preferences for mitigation action: the case of the Carbon Pollution Reduction Scheme in Australia By Akter, Sonia; Bennett, Jeff
  4. Environmental triage decisions during a drought By Gorddard, Russell; Connor, Jeff; Ranjan, Ram
  5. Turning Water into Carbon: Carbon sequestration vs. water flow in the Murray-Darling Basin By Schrobback, Peggy; Adamson, David; Quiggin, John
  6. Low Emission Farming Systems: A whole-farm analysis of the potential impacts of greenhouse policy By Kingwell, Ross; Metcalf, Tess
  7. Understanding farmers' perceptions and adaptations to climate change and variability: The case of the Limpopo Basin, South Africa By Gbetibouo, Glwadys Aymone
  8. THE IMPACT OF AN AUSTRALIAN EMISSION TRADING SCHEME AND THE USE OF AGRICHAR ON THE SUGARCANE INDUSTRY By Thomas, Cameron
  9. When nature rebels: international migration, climate change and inequality By Luca Marchiori; Ingmar Schumacher
  10. Integrating economic values and catchment modelling By Kragt, Marit E.; Bennett, Jeff
  11. Integrating economic values and catchment modelling By Kragt, Marit E.; Bennett, Jeff W.
  12. Environmental policy without costs? A review of the Porter hypothesis By Brännlund, Runar; Lundgren, Tommy
  13. ADAPTING MORE CLEVERLY TO CLIMATE CHANGE BY USING ‘REAL OPTIONS’ TO ADDRESS THE UNCERTAINTIES By Dobes, Leo
  14. Does remediation save lives? On the cost of cleaning up arsenic-contaminated sites in Sweden By Forslund, Johanna; Samakovlis, Eva; Vredin Johansson, Maria; Barregård, Lars
  15. The role of real options analysis in the design of a greenhouse gas emissions trading scheme By Lambie, N. Ross
  16. Pollution and the State: The Role of the Structure of Government By Lopez, Ramon; Galinato, Gregmar I.; Islam, Asif
  17. Valuation of Water Quality Improvements in the Karapiro Catchment: A Choice Modelling Approach By Marsh, Dan; Baskaran, Ramesh
  18. Nonpoint pollution policy evaluation under ambiguity By Doole, Graeme; Pannell, David J.
  19. Testing Different Types of Benefit Transfer in Valuation of Ecosystem Services: New Zealand Winegrowing Case Studies By Baskaran, Ramesh; Cullen, Ross; Culumbo, Sergio
  20. Climate Change and the Australian Agricultural and Resource Industries By Garnaut, Ross
  21. Evaluating alternatives for mitigating Cryptosporidium risk and generating environmental service benefits in water supply catchments By Kandulu, John; Bryan, Brett
  22. Environmental policy and profitability. Evidence from Swedish industry By Brännlund, Runar; Lundgren, Tommy
  23. They Ain’t Making Any More of It: Agricultural Land Use, Conservation, Conflicts, Development and Energy (PowerPoint) By Richardson, Jesse J. Jr.
  24. Using choice experiments to value river and estuary health in Tasmania with individual preference heterogeneity By Kragt, Marit E.; Bennett, J.W.
  25. Preferences, Norms and Constraints in farmers’ agro-ecological choices. Case study using a choice experiments survey in the Rhone River Delta, France By Jaeck, M.; Lifran, Robert
  26. Public values for improved water security for domestic and environmental use By Windle, Jill; Rolfe, John; Brouwer, Roy
  27. The Costs and Benefits of Effluent Management Compliance in the Waikato Region of New Zealand By Gauntlett, William
  28. Location differences in communities’ preferences for environmental improvements in selected NSW catchments: A Choice Modelling approach By Mazur, Kasia; Bennett, Jeff
  29. Grandfathering and greenhouse: the role of compensation and adjustment assistance in the introduction of a carbon emissions trading scheme for Australia By Menezes, Flavio; Quiggin, John; Wagner, Liam
  30. An agro-economic model to analyse climate change impacts on farmers’ income By Jiang, Qiang
  31. Sustainability, resource substitution in energy inputs and learning By Ingmar Schumacher; Pierre-André Jouvet
  32. Chinas langer Marsch zur Umweltrevolution: Umweltprobleme und Umweltpolitik der Chinesischen Volksrepublik By Prof. Dr. habil. Bohnet, Michael
  33. The Policy Relevance of Choice Modelling: An Application to the Ningaloo and Proposed Capes Marine Parks By McCartney, Abbie
  34. Australian environmental and natural resource policy – from the Natural Heritage Trust to Caring for our Country By Pannell, David
  35. Policy responses to invasive native species: issues of social and private benefits and costs By Farquharson, Bob; Kelly, Jason; Welsh, Pam; Mazur, Kasia; Bennett, Jeff
  36. Saving the World but Saving Too Much? Time Preference and Productivity in Climate Policy Modelling By Smith, Kathryn
  37. Experiments with regulations & markets linking upstream tree plantations with downstream water users By Nordblom, Tom; Reeson, A.; Finlayson, J.; Hume, I.H.; Whitten, S.; Kelly, J.A.
  38. Burden of Proof in Environmental Disputes in the WTO: Legal Aspects By Horn, Henrik; Mavroidis, Petros C.
  39. Climate Change and the Asia-Pacific Food System By Armbruster, Walt; Coyle, William
  40. An analysis of the spatial and temporal patterns of greenhouse gas emissions by agriculture in Western Australia and the opportunities for agroforestry offsets By Kingwell, Ross; Harris'Adams, Keely
  41. Food Miles, Carbon Footprinting and their potential impact on trade By Saunders, Caroline; Barber, Andres; Sorenson, Lars-Christian
  42. MEASUREMENT OF AGRICULTURAL TOTAL FACTOR PRODUCTIVITY GROWTH INCORPORATING ENVIRONMENTAL FACTORS: A NUTRIENTS BALANCE APPROACH By Hoang, Viet-Ngu; Coelli, Tim
  43. Contract Design for Biodiversity Procurement By Bardsley, Peter; Burfurd, Ingrid
  44. Biosecurity Economics: Conflicting results in evaluation criteria By Goswami, Sarah
  45. Valuing a Clean River: A case study of Musi River, Hyderabad, India By Gayathri Devi, Mekala; Samad, Madar; Davidson, Brian; Boland, Anne-Maree
  46. Capacity decisions with demand fluctuations and carbon leakage By Guy Meunier; Jean-Pierre Ponssard
  47. Forest and Forest Land Valuation: How to Value Forests and Forest Land to Include Carbon Costs and Benefits By Meade, Richard; Fiuza, Gabriel; Lu, Andrea; Boyle, Glenn; Evans, Lewis
  48. The impact of climate change on the irrigated agricultural industries in the Murray-Darling Basin By Hafi, Ahmed; Thorpe, Sally; Foster, Adam
  49. How are Green National Accounts Produced in Practice? By Samakovlis, Eva
  50. Bioeconomic analysis of fertiliser input costs on pasture resource management under climatic uncertainty By Behrendt, Karl; Cacho, Oscar; Scott, James M.; Jones, Randall
  51. Does ratification matter and do major conventions improve safety and decrease pollution in shipping? By Knapp, S.; Franses, Ph.H.B.F.
  52. THE STRUCTURE OF THE DESERT ECONOMY: RISKS AND STRATEGIES FOR LONG-TERM SUSTAINABLE GROWTH By Rola-Rubzen, Maria Fay; McGregor, Murray J.
  53. Changement climatique et chocs extrêmes : défis, pièges, pistes By Patrick Lagadec
  54. USE OF CATCHMENT SPECIFIC SOCIAL AND ECONOMIC INFORMATION IN MANAGING NATURAL RESOURCES By Ahmed, Mehnaz; Jacobs, Brent; Tracey, Jacquie

  1. By: Cuevas-Cubria, Clara
    Abstract: In Australia, as in other countries, the environmental costs and benefits of biofuel production and use have been found to vary greatly according to the production method and feedstocks used. In general, the use of biodiesel produced in Australia has been found to provide greater environmental benefits than ethanol, both in terms of reduced greenhouse gas (GHG) emissions and reduced air pollutant emissions. In this paper, estimates of GHG and air pollutant emissions arising from biofuels and petroleum fuels production and use are employed to calculate the change in environmental externalities when substituting biofuels for petroleum fuels in Australia. These estimates of externalities highlight the need to better understand the environmental implications of biofuel production and use.
    Keywords: biofuels, environmental policy, greenhouse gas emissions, air pollutants, externalities, Australia,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:47624&r=env
  2. By: Berrone, Pascual (IESE Business School); Gelabert, Liliana (Universidad Carlos III); Fosfuri, Andrea (Universidad Carlos III)
    Abstract: Drawing on institutional theory and insights from stakeholder theory and impression management, we empirically analyze the impact of both environmental symbolic polices (participation in voluntary environmental programs, green trademarks, environmental-dedicated board committees, environmental pay policies and community communication) and substantive actions (environmental patents and pollution prevention practices) on environmental legitimacy. We show that 1) symbolic actions have a weaker positive effect on legitimacy than substantive actions; 2) that the impact of symbolic actions is greater when they are combined with substantive actions, and 3) that this impact is only short-term while substantive actions have both short- and long-term effects.
    Keywords: environmental management; institutional theory; legitimacy; stakeholder management; symbolic management;
    Date: 2009–01–05
    URL: http://d.repec.org/n?u=RePEc:ebg:iesewp:d-0778&r=env
  3. By: Akter, Sonia; Bennett, Jeff
    Abstract: The study aims to reveal Australian households’ perceptions of climate change and their preferences for climate change mitigation actions. A web-based survey was conducted in November 2008 in which about 600 New South Wales households were asked for their willingness to bear extra household expenditure to support the ‘Carbon Pollution Reduction Scheme (CPRS)’ as proposed by the Australian government. The Contingent Valuation Method (CVM), a widely used non-market valuation technique, was applied using the single bounded dichotomous choice elicitation format. Results of the study demonstrate that, currently, there is a positive demand for climate change mitigation action in Australia. The main motivation for this positive demand stems from a desire to avoid climate change. However, society’s willingness to pay (WTP) for climate change mitigation is shown to be significantly curbed by uncertainties regarding the extent of climate change and the effectiveness of climate change policy. Global cooperation (major greenhouse gas emitting countries implementing similar scheme) plays an important role in determining Australian households’ support for the CPRS. Only when cooperation is assumed, do the benefits of the CPRS, as estimated by respondents’ WTP, exceed its costs.
    Keywords: Contingent valuation, climate change, Carbon Pollution Reduction Scheme, willingness to pay, uncertainty, Australia,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:47936&r=env
  4. By: Gorddard, Russell; Connor, Jeff; Ranjan, Ram
    Abstract: The Murray Darling Basin Current is currently in drought. There are low water levels in most dams, and increased uncertainty about future rainfall. As a result management of the ecosystems in the basin that depend on river flows involves some hard decisions about what assets to save and what assets to let go. This paper models this triage problem using a stochastic and dynamic programming approach. This model is used to identify how optimal management is affected by hysteretic and irreversible effects of drought on ecosystem assets and uncertainty about future climate.
    Keywords: Triage, irreversibility, climate change,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:47631&r=env
  5. By: Schrobback, Peggy; Adamson, David; Quiggin, John
    Abstract: Large scale forest plantations in the Murray-Darling Basin may be embraced as a carbon sequestration mechanism under a Carbon Pollution Reduction Scheme. However, increased tree plantation will be associated with reduced inflows to river systems because of increased transpiration, interception and evaporation. Therefore, an unregulated change in land management is most likely to have a dramatic impact on the water availability. This will exacerbate the impacts of climate change projected in the Garnaut Review. This paper examines the implications of unrestricted changes in land use. These results should suggest the true costs to society from carbon sequestration by determining the tradeoffs between timber production and agricultural products.
    Keywords: Murray-Darling Basin, carbon sequestration, forest plantation, irrigated agriculture, water flow, trade-off,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:47616&r=env
  6. By: Kingwell, Ross; Metcalf, Tess
    Abstract: The Australian government is introducing a Carbon Pollution Reduction Scheme in 2010, as part of its climate change policy. After 2015 agriculture may be covered by this scheme. This paper examines how different broadacre farming systems may be affected by the policy settings of this scheme. Using the bio-economic farming systems model MIDAS (Model of an Integrated Dryland Agricultural System) the impacts of the Carbon Pollution Reduction Scheme on the profitability of different broadacre farming systems in the southwest of Australia are investigated. Results show a range of profit and enterprise impacts across the various farm types. In a scenario where agriculture is not covered by the scheme, reductions in profit range from 7 to 12 percent, attributable to more expensive ‘covered’ inputs such as fuel and fertiliser; and farmers reduce their use of expensive energy inputs such as chemicals and fertilisers. In a covered scenario profits decline by 15 to 25 percent of ‘business-as-usual’ profit and optimal farm plans involve a combination of reduced livestock numbers, the introduction of permanent woody perennial plantations on marginal lands and other changes to the farm enterprise mix to reduce emissions.
    Keywords: agriculture, greenhouse gases, economic modelling, abatement,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:48162&r=env
  7. By: Gbetibouo, Glwadys Aymone
    Abstract: "Climate change is expected to have serious environmental, economic, and social impacts on South Africa. In particular, rural farmers, whose livelihoods depend on the use of natural resources, are likely to bear the brunt of adverse impacts. The extent to which these impacts are felt depends in large part on the extent of adaptation in response to climate change. This research uses a “bottom-up” approach, which seeks to gain insights from the farmers themselves based on a farm household survey. Farm-level data were collected from 794 households in the Limpopo River Basin of South Africa for the farming season 2004–2005. The study examines how farmer perceptions correspond with climate data recorded at meteorological stations in the Limpopo River Basin and analyzes farmers' adaptation responses to climate change and variability. A Heckman probit model and a multinomial logit (MNL) model are used to examine the determinants of adaptation to climate change and variability. The statistical analysis of the climate data shows that temperature has increased over the years. Rainfall is characterized by large interannual variability, with the previous three years being very dry. Indeed, the analysis shows that farmers' perceptions of climate change are in line with the climatic data records. However, only approximately half of the farmers have adjusted their farming practices to account for the impacts of climate change. Lack of access to credit was cited by respondents as the main factor inhibiting adaptation. The results of the multinomial logit and Heckman probit models highlighted that household size, farming experience, wealth, access to credit, access to water, tenure rights, off-farm activities, and access to extension are the main factors that enhance adaptive capacity. Thus, the government should design policies aimed at improving these factors. " from authors' abstract
    Keywords: Climate change, Climate variability, Perception, Adaptation, Agriculture,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:fpr:ifprid:849&r=env
  8. By: Thomas, Cameron
    Abstract: The Australian government’s proposed Carbon Pollution Reduction Scheme (CPRS) is likely to have a significant impact on the price of farm inputs (diesel, fertiliser, water and electricity). Furthermore, offsets (reduction or removal of greenhouse gas emissions that counterbalances emissions elsewhere in the economy) are a potential area of expansion under the scheme with particular interest in the agricultural sector. Agrichar is one of the new technologies and farming practices being investigated to counteract CPRS-imposed costs. Its two claimed benefits which relate both to the profitability of cane growers as well as to climate change are: the reduction in fertiliser application; and the carbon which agrichar can store in the soil for hundreds to thousands of years. This study drew on the Farm Economics Analysis Tool (FEAT) developed by the Queensland Department of Primary Industries and Fisheries specifically for the sugarcane industry. An analysis was conducted for a typical sugarcane farming enterprise in the Herbert Region of North Queensland. The scenarios included in the analysis recognised the change in input prices due to an emissions trading scheme, the change in farm practices when agrichar is included in operations and the potential to trade in offsets from that additional carbon stored by the use of agrichar. The sugarcane grower was found to benefit from the inclusion of agrichar into the operations. Agrichar is seen as a potential and viable option for sugarcane growers and should be considered as an alternative under the emissions trading scheme to minimise the impact of the rise in input costs. Further scientific and policy development could see the possibility for stored carbon to be traded in the offsets market, providing additional, although minor, cash flow to the grower.
    Keywords: CPRS, sugarcane profitability, carbon offsets, agricultural adaptation,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:47641&r=env
  9. By: Luca Marchiori (IRES - Université Catholique de Louvain); Ingmar Schumacher (Department of Economics - University of Trier, Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X)
    Abstract: This article analyzes the link between climate change and international migration. We use a two-country overlapping generations model with endogenous climate change, in which the production in the North generates climate change which negatively affects the productivity of the South. Our main findings are: (i) climate change will increase migration; (ii) small impacts of climate change have significant impacts on the number of migrants; (iv) a laxer immigration policy increases long- run migration, reduces climate change, increases North-South inequality if DRTS are significant; (v) a greener technology reduces long-run migration, provides a double- dividend in favor of the environment, reduces inequality if the migrants' impact to overall climate change is large. The preference over the policies thus depends on whether the policy maker targets inequality, wealth, the number of migrants or the environment, but the qualitative ranking between the policies does not change if the policies are costly.
    Keywords: climate change, migration, North-South model, overlapping generations, inequality.
    Date: 2009–01
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00358759_v1&r=env
  10. By: Kragt, Marit E.; Bennett, Jeff
    Abstract: Integrated catchment policies are widely used to manage natural resources in Australian catchments. Decision support tools available to aid integrated catchment management are often limited in their integration of environmental processes with socio-economic systems. Fully integrated models are required to support assessments of the environmental and economic trade-offs of catchment management changes. A Bayesian Network (BN) model is demonstrated to provide a suitable approach to integrate environmental modelling with economic valuation. The model incorporates hydrological, ecological and economic models for the George catchment in Tasmania. Information about the non-market costs and benefits of environmental changes is elicited using Choice Experiments, allowing an assessment of the efficiency of alternative management scenarios.
    Keywords: Integrated catchment modelling, Bayesian networks, Uncertainty, Environmental values, Non-market valuation, Choice Modelling.,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:47956&r=env
  11. By: Kragt, Marit E.; Bennett, Jeff W.
    Abstract: Integrated catchment policies are widely used to manage natural resources in Australian catchments. Decision support tools available to aid integrated catchment management are often limited in their integration of environmental processes with socio-economic systems. Fully integrated models are required to support assessments of the environmental and economic trade-offs of catchment management changes. A Bayesian Network (BN) model is demonstrated to provide a suitable approach to integrate environmental modelling with economic valuation. The model incorporates hydrological, ecological and economic models for the George catchment in Tasmania. Information about the non-market costs and benefits of environmental changes is elicited using Choice Experiments, allowing an assessment of the efficiency of alternative management scenarios.
    Keywords: Integrated catchment modelling, Bayesian networks, Uncertainty, Environmental values, Non-market valuation, Choice Modelling.,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:48057&r=env
  12. By: Brännlund, Runar (Umeå University); Lundgren, Tommy (Umeå School of Business)
    Abstract: This paper reviews the theoretical and empirical literature connected to the so called Porter Hypothesis. That is, to review the literature connected to the discussion about the relation between environmental policy and competitiveness. According to the conventional wisdom environmental policy, aiming for improving the environment through for example emission reductions, do imply costs since scarce resources must be diverted from somewhere else. However, this conventional wisdom has been challenged and questioned recently through what has been denoted the “Porter hypothesis”. Those in the forefront of the Porter hypothesis challenge the conventional wisdom basically on the ground that resources are used inefficiently in the absence of the right kind of environmental regulations, and that the conventional neo-classical view is too static to take inefficiencies into account. The conclusions that can be made from this review is (1) that the theoretical literature can identify the circumstances and mechanisms that must exist for a Porter effect to occur, (2) that these circumstances are rather non-general, hence rejecting the Porter hypothesis in general, (3) that the empirical literature give no general support for the Porter hypothesis. Furthermore, a closer look at the “Swedish case” reveals no support for the Porter hypothesis in spite of the fact that Swedish environmental policy the last 15-20 years seems to be in line the prerequisites stated by the Porter hypothesis concerning environmental policy.
    Keywords: Environmental policy; Costs; Porter hypothesis
    Date: 2009–01–01
    URL: http://d.repec.org/n?u=RePEc:hhb:sicgwp:2009_001&r=env
  13. By: Dobes, Leo
    Abstract: Scientists consider that some climate change is already inevitable, even if anthropogenic greenhouse emissions are stabilised immediately. Adaptation measures are therefore needed, irrespective of any mitigation action. But policy discussion is focussed on deterministic responses, generally risk-based "worst case‟ scenarios. An example is the development of more stringent standards for buildings and for coastal development. Such "climate proofing‟ is misconceived in the face of the huge uncertainties involved. Economists need to promote more rational policy frameworks that draw on cost-benefit analysis, including the use of "real options‟ to minimise the cost to society of adapting to climate change.
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:47615&r=env
  14. By: Forslund, Johanna (National Institute of Economic Research); Samakovlis, Eva (National Institute of Economic Research); Vredin Johansson, Maria (National Institute of Economic Research); Barregård, Lars (National Institute of Economic Research)
    Abstract: Swedish environmental policy is based on 16 environmental quality objectives (Gov. Bill 2000/01:130 and Gov.Bill 2004/05:150).1 One of the most challenging objectives,‘A non toxic environment’, has two interim targets that concern remediation of contaminated sites. In sum, they state that the highest priority should be given to sites posing the highest risks to human health and the environment.2 By eliminating pollutants in soil, groundwater and sediment, the interim targets aim to reduce risks to human health and the environment. In Sweden, 83,000 sites are potentially contaminated due to previous industrial activities. According to the Swedish Environmental Protection Agency (EPA), the administrator of the governmental funds for remediation, approximately 1500 of these sites contain contaminant concentrations that could seriously harm human health and the environment (Swedish EPA, 2008a). To reach the interim targets, all these sites need to be remediated by 2050. Remediation of contaminated sites has so far cost more than SEK 3,000 million.3 The approximated cost to mitigate the potential risks at the most harmful sites is estimated at SEK 60,000 million.4 The Swedish government’s funding for remediation presently comes in the form of a directed grant (sakanslag). The directed grant, administrated by the Swedish EPA, subsidises remediation of contaminated sites that were contaminated prior to modern environmental legislation (in 1969) or for which no liable party can be found. The directed grant amounts to approximately 455 millions annually, which corresponds to about 10 percent of the annual national funds for environmental protection (Gov. Bill 2007/08:1). To make it possible to prioritise among contaminated sites, the Swedish EPA has developed a method for risk assessment called the ‘MIFO’ (i.e. the Method for Inventory of Contaminated Sites). The risk assessment does not take into account the actual exposure at a contaminated site. Risk is instead assessed based on divergence from guideline values for acceptable concentrations given a standardised (i.e. worst case) exposure situation on an individual level. This means that a site can be remediated without any individuals actually being exposed. The expected risk reduction is consequently not quantified. This eliminates the possibility of valuing the risk reduction, which should be weighed against the remediation cost.<p><p> The purpose of this paper is to analyse how health effects, in the form of cancer risks, from sites contaminated by arsenic are valued implicitly in remediation. By using an environmental medicine approach that takes exposure into account, and without underestimating the potential health consequences of arsenic exposure, our purpose is to place arsenic risk management in the overall picture of live-saving interventions. In the case of cancer prevention, it is necessary to recognise that focus on an environmental carcinogen like arsenic may draw public attention – and funding – away from mental health risks like ambient air pollution and indoor radon. Although environmental pollution accounts for less than ten percent of all cancer cases (Harvard Centre for Cancer Prevention, 1996; Saracci and Vineis, 2007), environmental factors are important to recognize since they may be preventable. We emphasise, however, the inefficiency in becoming overly concerned about small risks while, at the same time, losing sight of the large risks. If society’s spending on lifesaving measures with small effects (i.e. a small number of lives saved) crowds out spending on lifesaving measures with large effects, then remediation can, in fact, even be said to waste lives.<p><p>By using data on 23 arsenic-contaminated sites in Sweden, we estimate the sitespecific cancer risks and calculate the cost per life saved by using the sites’ remediation costs. Our results show that the cost per life saved through remediation is much higher than that associated with other primary prevention measures, indicating that the ambition level of Swedish remediation may be too high.
    Date: 2009–02–28
    URL: http://d.repec.org/n?u=RePEc:hhs:nierwp:0108&r=env
  15. By: Lambie, N. Ross
    Abstract: Analysing the effect of a greenhouse gas emissions trading scheme (ETS) on energy-intensive industries using a simple model of the long-run equilibrium fails to fully capture the design implications of a scheme. When we allow for imperfect market structures and uncertainty, it is more useful to focus on how an industry is affected by the scheme’s design in moving to its long-run equilibrium. A real options modelling approach that analyses how firms in these industries are likely to respond to an ETS through their investment behaviour is proposed as a more insightful method for public policy analysis.
    Keywords: climate change policy, emissions trading, investment, real options,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:47626&r=env
  16. By: Lopez, Ramon; Galinato, Gregmar I.; Islam, Asif
    Abstract: Government spending has significant environmental implications. This paper analyzes the effect of the allocation of government spending between public goods broadly defined and private goods or non-social subsidies on air and water pollution. The theoretical model predicts that a reallocation of expenditures from private subsidies to public goods improves environmental quality by reducing production pollution. We estimate an empirical model that shows that such a reallocation causes a significant reduction in air pollutants namely sulfur dioxide and lead and an improvement in water quality measures including dissolved oxygen and biological oxygen demand.
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:48055&r=env
  17. By: Marsh, Dan; Baskaran, Ramesh
    Abstract: Water pollution is widely considered to be one of the most important environmental issues facing New Zealand. Waikato region residents have reported that water pollution is easily their most important environmental concern in each of four attitude surveys conducted by Environment Waikato. Technical and regulatory mechanisms to reduce water pollution, especially non-point source pollution from agriculture are the focus of an intensive research effort both in New Zealand and internationally. This work should assist farmers and policy makers to identify the most cost effective options for achieving any given improvement in water quality. Research described in this paper aims to complement existing research projects by developing appropriate methodology for valuation of water quality improvements in New Zealand. It is envisaged that this type of information will inform the policy process by allowing decision makers to consider both the costs and the benefits of different levels of water quality improvements. This paper describes the first phase focussed on the Karapiro catchment which used focus groups and choice modelling in order to understand and quantify the value of water quality improvements in the catchment.
    Keywords: Water Quality, Non Market Valuation, Choice Modelling,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:47951&r=env
  18. By: Doole, Graeme; Pannell, David J.
    Abstract: Environmental policy evaluation is characterised by a paucity of information. Bounded sets may be more appropriate for representing this ambiguity than traditional probability distributions. A formal calibration method for regional policy models, positive mathematical programming, is thus extended to incorporate parameter definition using bounded sets through the novel method of robust non-linear programming. The resulting procedure identifies strong bounds on the range of abatement costs accruing to environmental policy and improves the relevance and value of modelling studies through not limiting conclusions to realisations of specific point estimates or probability distributions. Moreover, it may easily be solved using standard mathematical-programming algorithms. Empirical insights are provided in an application to a New Zealand inland lake threatened by nitrate pollution from dairy farming. Factor substitution could potentially be used to reduce the abatement costs accruing to regulation. However, such behaviour is shown not to be optimal at the parameter values used in this study. Accordingly, large reductions in nitrate leaching and concomitant improvements in water quality potentially bear a substantial cost to producers.
    Keywords: Interval analysis, nonpoint pollution, robust optimisation.,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:48036&r=env
  19. By: Baskaran, Ramesh; Cullen, Ross; Culumbo, Sergio
    Abstract: Most ecosystem services (ES) are neither priced nor marketed. Resource managers may fail to take into account degradation of unpriced services in their resource management decisions. Being able to estimate values for ES is fundamental to designing policies to induce resource users to provide (or improve) ES at levels that are acceptable to society. Conducting ecosystem valuation via non-market methods is costly and time consuming. Benefit Transfer (BT) using choice modeling (CM) is a potentially cost-effective method for valuing ES by transferring information from existing valuation studies (and study sites) to a target area of interest (policy sites). The prime objective of this paper is to examine the validity of BT and hence whether it is feasible to conduct the transfer process and assist policy making. The paper focuses on the environmental impact of winegrowing practices in two New Zealand winegrowing regions. The two sites, Hawke’s Bay and Marlborough, have similar environmental issues and attributes but are geographically separated. The study estimates WTP and Compensating Surplus (CS) for ES applying CM and, subsequently, given the preferences of respondents across sites and populations, tests the transferability of unadjusted value transfer (WTP) and benefits function (CS) assessing four different types of BT.
    Keywords: Benefit transfer, choice modeling, New Zealand winegrowing, ecosystem services,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:48189&r=env
  20. By: Garnaut, Ross
    Date: 2009–02
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:47769&r=env
  21. By: Kandulu, John; Bryan, Brett
    Abstract: Evaluations of pathogen management options have focussed on assessing relative removal effectiveness as a basis for prioritising alternative management investment decisions. Using a case study of the Myponga catchment, South Australia, this paper presents results of a cost-effectiveness risk analysis of 13 catchment- and treatment-based water quality management alternatives for mitigating Cryptosporidium risk. A range of costs and benefits including set-up and operating costs, farm business costs and benefits, and environmental service benefits are considered in comparing the net cost associated with each management alternative. Considering the broader range of costs and benefits changes the relative cost-effectiveness of water quality management alternatives significantly. Combinations of catchment- and treatment-based management alternatives proved to be relatively more cost-effective at mitigating Cryptosporidium risk. Specifically, the combination of spatially targeted water course management upstream of the catchment with reservoir treatment by ultra-violet radiation provides a cost-effective Cryptosporidium risk mitigation strategy especially when the adoption of dung beetles and treatment by enhanced coagulation are included as complementary low cost alternatives. Considering the broader range of costs and benefits enhances the potential to increase the cost-effectiveness of investment in Cryptosporidium risk mitigation as well as produce a range of significant secondary benefits for water quality, biodiversity, and carbon sequestration.
    Keywords: Cryptosporidium, Catchment management, benefit cost, cost effectiveness,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:48190&r=env
  22. By: Brännlund, Runar (Umeå University); Lundgren, Tommy (Umeå School of Business)
    Abstract: The purpose of this paper is to investigate the existence of a “Porter effect” using firm level data on output and inputs from Swedish industry between 1990 and 2004. By utilizing a factor demand modeling approach, and specifying a profit function which has a technology component dependent upon firm specific effective tax on CO2, we are able to separate out the effect of regulatory pressure on technological progress. The results indicate that there is evidence of a reversed “Porter effect” in most industrial sectors, specifically energy intensive industries.
    Keywords: CO2 tax; factor demands; induced technological change; Porter argument
    Date: 2009–03–21
    URL: http://d.repec.org/n?u=RePEc:hhb:sicgwp:2009_002&r=env
  23. By: Richardson, Jesse J. Jr.
    Abstract: Presented to USDA Economists Group, Washington, DC, March 11, 2009
    Keywords: Agriculture, land use, smart growtn, Environmental Economics and Policy, Land Economics/Use, Q,
    Date: 2009–03–11
    URL: http://d.repec.org/n?u=RePEc:ags:usdags:48183&r=env
  24. By: Kragt, Marit E.; Bennett, J.W.
    Abstract: Choice experiments (CE – otherwise known as Choice Modelling) have become a widespread approach to environmental valuation in Australia, with many examples assessing the tradeoffs between river catchment management and socio-economic impacts. There is, however, limited information on the values of Australian estuaries. Furthermore, none of the existing valuation studies address catchment management changes in Tasmania. The CE study reported in this paper aims to elicit community preferences for the protection of the rivers and estuary of the George catchment in north-eastern Tasmania. Results from conditional and mixed logit models show that respondents are, on average, willing to pay between $2.47 and $4.46 for a km increase in native riverside vegetation and between $9.35 and $10.97 per species for the protection of rare native plants and animals, ceteris paribus. The results are ambiguous about respondents’ preferences for estuary seagrass area. This study further shows significant differences between logit models when accounting for individual heterogeneity and repeated choices made by individual respondents.
    Keywords: River condition, Estuary condition, Environmental values, Non-market valuation, Choice Experiments, Tasmania,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:48058&r=env
  25. By: Jaeck, M.; Lifran, Robert
    Abstract: The aim of this paper is to elicit the sensitivity of farmers to payments for agro-environmental services in a context of strong agro-ecological and policy constraints. We present results from a choice experiment survey performed among the whole population of agricultural decision-makers (104) in the Camargue area. Several econometric models have been estimated, the most significant being the Latent Classes one. The estimated parameters of the utility function, together with the parameter associated with the monetary attribute provided the monetary value of each relevant agro-ecological attribute and the associated outcomes (average and risk yield).
    Keywords: Agricultural Technological Choices, Agro-environmental measures, Policy Instruments design, Choice Experiments, Sample Selection Model, Latent classes Model, Random Parameter Model, Rice production, Labelling, Organic farming,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:47948&r=env
  26. By: Windle, Jill; Rolfe, John; Brouwer, Roy
    Abstract: A choice modelling valuation exercise was recently undertaken across several countries to assess the tradeoffs that households are prepared to make between water use restrictions, maintaining environmental condition in waterways, and increased water costs. The results from the Queensland survey are reported in this paper. Also discussed are some of the tradeoffs involved in assuring the integrity of an international survey while retaining sufficient local context to make the choice modelling exercise both realistic and meaningful.
    Keywords: Choice modelling, water scarcity, water use tradeoffs, international survey,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:47627&r=env
  27. By: Gauntlett, William
    Abstract: Dairy farming in the Waikato Region has contributed greatly to the reduction of water quality. Part of this is attributable to the issue of inappropriate disposal of dairy effluent. Regional authority data shows both costs and benefits of complying with effluent management regulations. Private costs result from system and management improvements, while private benefits are largely due to reduced fertiliser requirements. Decreases in the volume of 'non-compliant effluent', resulting from improved compliance, are used as an indicator to illustrate reduced environmental effects. The benefits of becoming compliant outweigh the costs for half the farms analysed. More incentives are required to promote compliance from the other farms although their environmental effects are generally smaller.
    Keywords: Dairy farming, environment, effluent, compliance, cost, benefit.,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:48032&r=env
  28. By: Mazur, Kasia; Bennett, Jeff
    Abstract: A choice modelling (CM) study was conducted to elicit household willingness to pay (WTP) for improvements in environmental quality in three NSW catchments (Lachlan, Namoi and Hawkesbury-Nepean). This paper presents results of research designed to investigate variations in WTP across different communities including local residents, distant/urban and distant/rural residents. Nine split samples were established to test for ‘location effect’. The analysis involved both conditional logit and randomparameters logit models.
    Keywords: Choice modelling, Location effects, Non-market valuation, Catchment planning, Environment 1,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:47946&r=env
  29. By: Menezes, Flavio; Quiggin, John; Wagner, Liam
    Abstract: The terms ‘grandfather clause’ and ‘grandfathering’ describe elements of a policy program in which existing participants in an activity are protected from the impact of regulations, restrictions or charges applied to new entrants. In this paper, the role of grandfathering in the design of a carbon emissions trading scheme in Australia is assessed. It is argued that adjustment assistance policies such as those adopted in conjunction with previous microeconomic reform programs are preferable to policies based on the free issue of emissions permits.
    Keywords: grandfathering, emissions trading, compensation, adjustment assistance.,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:48042&r=env
  30. By: Jiang, Qiang
    Abstract: The increasing interests in climate change heighten the need for an agro-economic model to analyse climate change impacts on farmers’ incomes. Many researchers have turned to crop yield response models to estimate farmers’ yield and income loss. A classic method used by economists to establish yield response models is to build up the statistic relationship between historical yield changes and climate change through regression models. However, without comprehensive experimental data from each region such as crop yields response to CO2 concentration, these crop-yield response models may provide misleading predications. An alternative approach is the use of crop biophysical simulation models. Based one biophysical model Agricultural production systems simulator (APSIM), we develope an agro-economic model, WATER-BIOMASS DYNAMI, to simulate the change of crop yields and farmers' income affected by varied climate change scenarios and other economic factors. We used the WATER-BIOMASS DYNAMIC model to analyse the agricultural economic impacts of four climate change scenarios in the Australian Wagga Wagga wheat production area.
    Keywords: APSIM, Climate change, agricultural economics, wheat,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:48172&r=env
  31. By: Ingmar Schumacher (Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X, Department of Economics - University of Trier); Pierre-André Jouvet (EconomiX - CNRS : UMR7166 - Université de Paris X - Nanterre)
    Abstract: We assess the impact of the existence of a costly energy substitute (like wind, solar) for a non-renewable resource (like oil, coal) on the sustainability of consumption. The prospects for sustainability depend crucially on the costs of this substitute. If one can reduce the costs of the resource substitute via learning-by-using then we find that still this does not guarantee sustainability. Also, the poorer a country the less it will take the learning-by-using effect into account and the more likely it will be unsustainable.
    Keywords: Renewable resource, non-renewable resource, substitution, sustainability, learningby- using.
    Date: 2009–01
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00356044_v1&r=env
  32. By: Prof. Dr. habil. Bohnet, Michael
    Keywords: Environmental Economics and Policy, International Relations/Trade,
    Date: 2008–10
    URL: http://d.repec.org/n?u=RePEc:ags:ubzefd:48192&r=env
  33. By: McCartney, Abbie
    Abstract: One issue surrounding the use of Choice Modelling (CM) in policy is whether public and expert preferences diverge regarding particular environmental attributes. To investigate this issue two case studies use CM to value ecological attributes for the Ningaloo and proposed Capes marine parks in Western Australia. Public and expert populations are sampled, with consideration of information effects. Attention is also given to whether policy relevance can be improved by considering not only desired outcomes of the hypothetical policy options in the CM exercise, but also the management process used to achieve these outcomes. Preliminary results of the public sample identify significant impacts of both information and management process effects.
    Keywords: Choice modelling, public, experts, preferences, marine parks, non-use values.,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:48033&r=env
  34. By: Pannell, David
    Abstract: The Natural Heritage Trust and the National Action Plan for Salinity and Water Quality were major national policies focused on land and water degradation and nature conservation in Australia. These programs fell a long way short of achieving their stated goals. It is proposed that to be able to spend their considerable public funds in cost effective ways, they would have needed a number of particular characteristics. Among other things, they needed to prioritise investments well, consistent with an appropriate role of government, and based on analyses that integrated good quality bio-physical and socio-economic information. They needed to select policy mechanisms that would be appropriate for the circumstances. The incentives created by program rules and procedures should have encouraged environmental managers responsible for program delivery to pursue environmental outcomes cost-effectively. However, the programs did not satisfy these criteria. Prospects for improving matters in the new national program, Caring for our Country, are discussed. It will be difficult to deliver outcomes cost-effectively in the new program for reasons that include capacity constraints in government agencies, time pressures on policy development, and political priorities of governments.
    Keywords: policy evaluation, policy mechanism choice, policy implementation,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:47935&r=env
  35. By: Farquharson, Bob; Kelly, Jason; Welsh, Pam; Mazur, Kasia; Bennett, Jeff
    Abstract: Farm and catchment managers in Australia face decisions about controlling invasive native species (or scrub) which may infest agricultural land. The treatment of this land to remove the infestation and re-establish native pastures is likely to be expensive for landholders. Yet there are potential social benefits from such remediation and so a policy question arises of what to do to about facilitating such change. New South Wales state government legislation addresses this issue through regulations, and the Catchment Management Authorities are responsible for administering public funds to achieve associated natural resource improvements. However, the extent of the private costs and social benefits associated with such changes are not known, which precludes benefit-cost analyses using the traditional welfare economics framework. This paper reports results of a social and private economic analysis of the impacts of a typical infestation remediation decision. We show that for the landholder the private costs exceed the benefits achieved from increased livestock productivity. However, there are social benefits expressed by the willingness to pay by members of the local catchment community for improvements in native vegetation and biodiversity. When these social benefits are included, the economic analysis shows a positive social net benefit. This raises questions of how to reconcile the public and private accounting, and whether any changes to policies, regulations or procedures for natural resource management in New South Wales are warranted.
    Keywords: Invasive native scrub, environmental values, choice modelling, financial, economic, Namoi catchment,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:48157&r=env
  36. By: Smith, Kathryn
    Abstract: Discounting the distant future has periodically been a controversial topic in welfare economics but the evaluation of climate change policy and particularly the Stern Review have given the debate a new relevance. The parameters in a standard social welfare function that determine the path for the discount rate are also important in determining the time path of saving, and several prominent economists have criticised the values used in the Review specifically because they imply excessively high optimal saving rates, from either a positive or normative perspective. The fact that near-zero rates of pure time preference do not necessarily lead to absurdly high saving rates has been known for some time. However, in the context of climate change policy, this point has been made using inappropriate models or specific numerical examples with a rather arbitrary value for the rate of growth of total factor productivity (TFP). Given the attention that the ‘unreasonable saving rates’ debate has received in the climate change literature, there is a role for a rigorous presentation of the determinants of saving rates in models used to evaluate climate change policy, using values for TFP growth informed by recent historical experience. I show that both in theory and practice, optimal saving rates in the presence of near-zero pure time preference are far from the near-100 per cent ones obtained from simpler models. In the widely used Dynamic Integrated model of Climate and the Economy (DICE) model, optimal rates are close to 30 per cent for a range of values of the elasticity of marginal utility of consumption, and for Stern’s revised central value for that parameter they do not exceed 31 per cent. While the role of TFP growth in lowering optimal saving rates in the presence of near-zero rates of pure time preference may have been overplayed in some previous work, TFP growth is a key determinant of output and hence emissions and climate damage, so working with realistic values of TFP growth remains crucial.
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:47619&r=env
  37. By: Nordblom, Tom; Reeson, A.; Finlayson, J.; Hume, I.H.; Whitten, S.; Kelly, J.A.
    Abstract: Land-use change in upper catchments impact downstream water flows. As trees use large amounts of water the expansion of upstream plantations can substantially reduce water availability to downstream users. There can also be impacts on downstream salinity due to reduced dilution flows. In some jurisdictions afforestation requires the purchase of water rights from downstream holders, while in others it does not, effectively handing the water rights to the upstream landholders. We consider the economic efficiency and equity (profitability and distributional) consequences of upstream land use change in the presence of a water market under alternate property rights regimes and different salinity scenarios.
    Keywords: experimental-economics, tree-plantations, environmental-services, urban, irrigation, stock & domestic, water use, land use,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:47945&r=env
  38. By: Horn, Henrik (Research Institute of Industrial Economics (IFN)); Mavroidis, Petros C. (Columbia Law School)
    Abstract: This paper discusses allocation of burden of proof in environmental disputes in the WTO system. Besides laying down the natural principles that (i) the complainant carries the burden to (ii) make a prima facie case that its claim holds, WTO adjudicating bodies have said little of more general nature. The paper therefore examines the case law of relevance to environmental policies, to establish the rules concerning burden of proof that are likely to be applied in such disputes. Evaluating this case law, the paper makes two observations,: First, in cases submitted under the GATTWTO, adjudicating bodies have committed errors regarding the required amount of evidence (the burden of persuasion); and second, such errors, as well as errors concerning the determination of the party to carry the burden of providing this evidence (the burden of production), have been committed in disputes submitted under the TBT/SPS Agreements. These errors largely seem attributable to the general absence of methodology regarding the interpretation of some key substantive provisions featuring in the three Agreements.
    Keywords: Burden of Proof; Burden of Production; Burden of Persuasion; WTO; Environment
    JEL: F13 Q56
    Date: 2009–03–13
    URL: http://d.repec.org/n?u=RePEc:hhs:iuiwop:0793&r=env
  39. By: Armbruster, Walt; Coyle, William
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:48152&r=env
  40. By: Kingwell, Ross; Harris'Adams, Keely
    Abstract: If agriculture is included in an Australian emissions trading scheme then it may face from 2015 at the earliest, a price for its greenhouse gas emissions; and thereby have incentives to offset and lessen its emissions. Yet because there is currently little understanding of the spatial pattern of emissions in agricultural regions of Australia, the extent of the challenge the sector faces in reducing its emissions is not fully recognised. To improve our understanding, this study uses the National Greenhouse Accounts methodology to estimate the spatial and temporal patterns of agricultural emissions since 1990 in the key agricultural region in Australia’s southwest. This region generates almost 40 percent of the nation’s winter crop production and supports over a quarter of the nation’s sheep. The quantity and trajectory of emissions from each shire in this region are reported, thereby identifying where emission problems may be worsening or easing. The composition and causes of changes in emissions are discussed. This study also generates spatial estimates of sequestration costs by drawing on land and forestry cost and tree growth data. Many relatively low cost sites for carbon sequestration, based on permanent reforestation, are identified with the implication that agriculture may be able to cost-effectively offset its emissions, as well as some of those from other sectors. However, an implication of this study’s findings is that in some shires eventually there may be strong land use competition between farming and forestry.
    Keywords: greenhouse gas emissions, spatial analysis, agriculture, offsets, sequestration,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:48161&r=env
  41. By: Saunders, Caroline; Barber, Andres; Sorenson, Lars-Christian
    Abstract: To obtain market access for NZ food exports to high value developed country markets exporters are having to comply and consider environmental factors such as carbon footprinting. This growth in demand for environmental attributes is shown in the rise of the food miles debate or concept. Food miles is a concept which has gained traction with the popular press arguing that the further food travels the more energy is used and therefore carbons emissions are greater. This paper assesses, using the same methodology, whether this is the case by comparing NZ production shipped to the UK with a UK source. The study found that due to the different production systems even when shipping was accounted for NZ dairy products used half the energy of their UK counterpart and in the case of lamb a quarter of the energy. In the case of apples the NZ source was 10 per cent more energy efficient. In case of onions whilst NZ used slightly more energy in production the energy cost of shipping was less than the cost of storage in the UK making NZ onions more energy efficient overall. The paper then explores other developments in market access to developed markets especially the rise in demand for products to be carbon footprinted and the introduction of carbon labelling. A review of latest methodology in carbon footprinting the PAS from the UK is reviewed and implications for trade assessed.
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:48051&r=env
  42. By: Hoang, Viet-Ngu; Coelli, Tim
    Abstract: This paper develops a new measure of total factor productivity growth in agricultural production which incorporates environmental effects. The new measure is called the Total Factor Nutrient-Orientated Productivity (TFNP) Index, and incorporates a materials balance condition. TFNP measures changes in nutrient-orientated efficiency and can be decomposed into efficiency change (EC), technological change (TC) and nutrient-orientated technological change (NTC) components. An empirical analysis, involving country-level data from OECD countries during 1990-2003, is provided using DEA methods. Estimates of mean technical and nutrient-orientated efficiency are 0.798 and 0.526, respectively. Estimated mean TFNP growth is 1.5% per year, with nutrient-orientated technological progress contributing 0.8%.
    Keywords: Total factor productivity, environment, nutrient balance, DEA,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:47636&r=env
  43. By: Bardsley, Peter; Burfurd, Ingrid
    Abstract: Market based instruments are proving increasingly effective in biodiversity procurement and in regulatory schemes to preserve biodiversity. The design of these policy instruments brings together issues in auction design, contract theory, biology, and monitoring technology. Using a mixed adverse selection, moral hazard model, we show that optimal contract design may differ significantly between procurement and regulatory policy environments.
    Keywords: biodiversity, procurement, adverse selection, moral hazard, contract theory,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:48047&r=env
  44. By: Goswami, Sarah
    Abstract: Determining the optimal policy response to a species invasion is a multidimensional problem. The choice between eradication or containment has social, environmental, political and economic dimensions. Often, economic evaluation is used as a basis to underpin policy decisions. However, under certain conditions economic evaluation criteria may provide conflicting results. Deterministic factors, such as rate of spread, degree of damage and the time until detection, are derived for identifying when caution must be taken with the results of economic evaluation criteria. The conditions under which conflicting results may be obtained between NPV and BCR are identified and linked to policy implications.
    Keywords: Biosecurity economics, eradication, containment, invasive species,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:48158&r=env
  45. By: Gayathri Devi, Mekala; Samad, Madar; Davidson, Brian; Boland, Anne-Maree
    Abstract: The current study uses contingent valuation technique to estimate the value of clean water in river Musi in Hyderabad, India. The main source of pollution of the river is untreated domestic and industrial wastewater from the urban area of Hyderabad. Therefore, people’s Willingness To Pay [WTP] for the treatment of their wastewater to different quality levels (Level C, B & A) is estimated using a payment card method. Four variables were considered to influence the willingness to pay - number of years the household lived in Hyderabad; individual perceived importance of controlling water pollution; household income levels and proximity to the river. The results of the logistic regression confirmed that the variables - perceived importance of the respondent of controlling water pollution and household incomes have a significant influence on people’s WTP. Only 30% of the respondents were willing to pay for wastewater to be treated to level C. It was concluded from the survey results that 100% cost recovery of sewerage services and wastewater treatment would not be possible in Hyderabad in the current situation. However, a phased increase in the water tariffs accompanied with simultaneous improvements in service delivery mechanisms and awareness among consumers may be successful in the long-run.
    Keywords: Contingent Valuation, Wastewater Treatment, Musi, Hyderabad, Willingness to Pay,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:48164&r=env
  46. By: Guy Meunier (Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X, 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); Jean-Pierre Ponssard (Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X)
    Abstract: This paper investigates the optimal mix between home capacity and imports to face an uncertain demand. It is proved that, if the difference between the home variable cost and the import price is large, the optimal home capacity increases as uncertainty increases, while it decreases if it is small. The model is calibrated using data from the cement sector to study the impact of a unilateral high CO2 price in Europe. The results suggest a higher carbon leakage rate and more relocation of the industry than deterministic models would.
    Keywords: capacity decisions, demand uncertainty, relocation, climate policy, carbon leakage.
    Date: 2008–12
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00347650_v1&r=env
  47. By: Meade, Richard; Fiuza, Gabriel; Lu, Andrea; Boyle, Glenn; Evans, Lewis
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:48163&r=env
  48. By: Hafi, Ahmed; Thorpe, Sally; Foster, Adam
    Abstract: Climate change is expected to signifi cantly reduce water availability in the Murray-Darling Basin. This paper details a bio-physical economic model of the Basin regions which has been developed to estimate the eff ect of reduced water availability on irrigated agriculture. In the model, regions are linked through a network of water and salt fl ows, while crop yields respond to irrigation and salinity. The model allows water trade to be restricted to regions or to be unrestricted across the basin. The paper also develops a hypothetical scenario to demonstrate the model.
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:47648&r=env
  49. By: Samakovlis, Eva (National Institute of Economic Research)
    Abstract: During the last part of the twentieth century, the effect of human activity upon the environment became an important policy issue. There is now a growing concern about how economic activity affects the environment and it has become more and more recognised that economic growth is dependent upon the provision of environ-mental services. To be able to combine economic growth with a healthy environment in terms of a sustainable use of natural resources, a better understanding of the rela-tionships between economy and ecology needs to be developed.
    Date: 2008–10–31
    URL: http://d.repec.org/n?u=RePEc:hhs:nierwp:0105&r=env
  50. By: Behrendt, Karl; Cacho, Oscar; Scott, James M.; Jones, Randall
    Abstract: The application of fertilisers to pastures in the high rainfall regions of southern Australia have contributed to large increases in carrying capacity since their introduction during the 1920s. Recently, large shifts in the world-wide demand for fertiliser inputs have lead to large rises in the cost of fertiliser inputs used at the farm level. The increasing cost of fertiliser inputs during a period of climatic uncertainty has significant potential ramifications on the future management of soil fertility and its interaction with the persistence and profitability of sown pastures. A dynamic pasture resource development simulation model was used to investigate the implications of fertiliser input cost on the optimal management of soil fertility under climatic uncertainty. The framework also allowed the investigation of how the management of soil fertility interacts with the utilisation of pasture resources through adjustments in stocking rates to maximise the expected present value of the grazing system. In the application of this method to the Cicerone Project farmlets case study, fertiliser input costs were found to influence the optimal combination of fertiliser inputs and stocking rate. The implications for grazing industries in the high rainfall regions of southern Australia are discussed.
    Keywords: fertiliser input costs, dynamic pasture resource model, pasture persistence, climatic uncertainty, risk-efficient frontier,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:47628&r=env
  51. By: Knapp, S.; Franses, Ph.H.B.F. (Erasmus Econometric Institute)
    Abstract: We develop a method which measures the effect of the major international conventions in the area of safety, pollution, search and rescue and work related measures. We further distinguish between the effect of entry into force and the status of ratification of a convention by its parties. We use standard econometric models and base our analysis on a unique dataset of 30 years of monthly data where we correct for other factors which can influence safety such as safety inspections and ship economic cycles. The results show a complex picture where the average time between adoption and entry into force was calculated to be 3.1 years. Overall, the more parties ratify a convention, the more likely safety is improved and pollution is decreased although one can detect a certain level of non compliance. The immediate effect of entry into force presents a mixed picture where most negative effects can be found with legislation in the area of safety management and pollution, followed by technical areas. The effect of legislation in the areas related to working and living conditions and certification and training is smallest. Seasonality can be found with peaks in December and January for all conventions but are less important for pollution.
    Date: 2009–02–17
    URL: http://d.repec.org/n?u=RePEc:dgr:eureir:1765014823&r=env
  52. By: Rola-Rubzen, Maria Fay; McGregor, Murray J.
    Abstract: The Australian desert economy is a $90 billion dollar economy. However currently, there is a reliance on a few industry sectors in delivering its output. About 60% of the gross revenue of the desert comes from only three sectors - mining, manufacturing and agriculture. This can pose a risk in light of climate change, increasing interconnectedness of financial markets and the fact that the resources boom is unlikely to be an on-going phenomenon. How can desert economies mitigate risks associated with over-reliance on a few select sectors and ensure continued growth in the long run? This paper discusses the structure of the desert economy and strategies to mitigate the risks of overdependence on a few industries. Using a regional input-output model, the study shows which industry sectors are likely to provide the highest multiplier impacts on the economy with implications on strategic investments for sustained growth and development of desert regions in Australia.
    Keywords: input-output model, desert economy, multiplier effects,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:48028&r=env
  53. By: Patrick Lagadec (Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X)
    Abstract: Le changement climatique fait l'objet de nombreux travaux visant à mieux préciser le phénomène, ses conséquences économiques potentielles, et les mesures à envisager pour limiter l'accélération de la modification du climat. Etrangement, peu semble fait pour traiter de front une question pourtant vitale et immédiate : si chocs extrêmes et fréquents il doit y avoir – cyclones, inondations, vagues de chaleur et de froid, problèmes de santé publique, etc. –, comment nos sociétés vont-elles les traverser ? Cette contribution a pour objet d'engager un début de réflexion sur le sujet.
    Keywords: Changement climatique, événements extrêmes, pilotage, formation
    Date: 2008–11
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00339759_v1&r=env
  54. By: Ahmed, Mehnaz; Jacobs, Brent; Tracey, Jacquie
    Abstract: Catchment specific economic and social information assists catchment management authorities in natural resource planning and decision making. It gives a context to the natural resource management (NRM) planning and decision making by providing an understanding of the economic and social characteristics in a region and tracks economic and social changes overtime. It also enables analysis of factors that influence a community’s competence in undertaking NRM activities. Catchment specific economic and social data is available from the Australian Bureau of Statistics but there are gaps in the availability of this data that may hinder NRM planning and decision making. The aim of this paper is two fold: firstly, it provides a snapshot of the economic and social information of selected catchments in NSW and secondly, it emphasises the need for further data availability that can facilitate NRM planning and decision making at a catchment level.
    Keywords: economic, social, data availability, natural resource management, catchment management authorities, decision making,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:aare09:47614&r=env

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