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on Environmental Economics |
| By: | David Popp; Richard G. Newell; Adam B. Jaffe |
| Abstract: | Within the field of environmental economics, the role of technological change has received much attention. The long-term nature of many environmental problems, such as climate change, makes understanding the evolution of technology an important part of projecting future impacts. Moreover, in many cases environmental problems cannot be addressed, or can only be addressed at great cost, using existing technologies. Providing incentives to develop new environmentally-friendly technologies then becomes a focus of environmental policy. This chapter reviews the literature on technological change and the environment. Our goals are to introduce technological change economists to how the lessons of the economics of technological change have been applied in the field of environmental economics, and suggest ways in which scholars of technological change could contribute to the field of environmental economics. |
| JEL: | O30 Q53 Q54 Q55 |
| Date: | 2009–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:14832&r=env |
| By: | Stephane Salaet; Jordi Roca (Universitat de Barcelona) |
| Abstract: | In terms of global warming, early peak forecasts in oil and natural gas seem reasonably good news because most emissions arise from fossil fuel burning. However, this can be misleading if coal resources are as enormous as some estimations report because a switch between low carbon content fossil fuels (oil and natural gas) and high carbon content (coal) can be envisaged. Following this hypothesis we develop peak oil and natural gas scenarios where coal supplies what is needed for levelling off fossil fuel energy as soon as oil and natural gas reach their joint peak. We estimate the implications in terms of greenhouse gas emissions and we compare them with the most pessimistic IPCC scenario. Our conclusion is, despite this IPCC scenario probably being unrealistic, the limitation of fossil fuel resources is not quite sufficient to avoid very dangerous emission future evolutions. CO2 concentrations well above 450 ppm at the end of the century are derived and, in addition, no sign of stabilization is observed. |
| Keywords: | peak oil, global warming, non renewable resource models |
| JEL: | Q3 C6 Q4 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:bar:bedcje:2009223&r=env |
| By: | Mandell, Svante (vti – Swedish National Road and Transport Research Institute) |
| Abstract: | This paper takes its departure in two observations from the EU’s climate policy. First, the EU has adopted a dual approach with a trading scheme covering CO2 emissions from the energy intensive industry, while the remaining emitters are subject to emission taxes. Second, the targets are quantitatively phrased, i.e., there is an upper limit on the total CO2 emissions. These observations are of interest under the realistic assumption of abatement costs being uncertain. Then the dual approach is likely not ex post cost effective. Furthermore, earlier literature suggests that an emissions tax on CO2 yields lower expected efficiency losses than a tradable permit scheme. Thus, quantitative targets, which are easier fulfilled through a trading scheme, stand in contrast to taxes being the preferable policy instrument. The present paper addresses, by the means of a stylized model, the two observations and shows when and why a dual approach is optimal from an efficiency point of view given an upper limit on total emissions. What determines the characteristics of the optimal solution, e.g., size of the trading vs. taxed sector and tax levels, is studied in some detail. |
| Keywords: | Climate; Emissions tax; Emissions trading; Policy; Regulation; Uncertainty |
| JEL: | H23 L51 Q28 Q58 |
| Date: | 2009–03–25 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:vtiwps:2009_004&r=env |
| By: | BRECHET, Thierry (UniversitŽ catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE)); EYCKMANS, Johan (UniversitŽ catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE)); GERARD, Franois (UniversitŽ catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE)); MARBAIX, Philippe |
| Abstract: | In this paper we analyze the negotiation strategy of the European Union regarding the formation of an international climate agreement for the post-2012 era. We use game theoretical stability concepts to explore incentives for key players in the climate policy game to join future climate agreements. We compare a minus 20 percent unilateral commitment strategy by the EU with a unilateral minus 30 percent emission reduction strategy for all Annex-B countries. Using a numerical integrated assessment climate-economy simulation model, we find that carbon leakage effects are negligible. The EU strategy to reduce emissions by 30% (compared to 1990 levels) by 2020 if other Annex-B countries follow does not induce participation of the USA with a similar 30% reduction commitment. However, the model shows that an appropriate initial allocation of emission allowances may stabilize a larger and more ambitious climate coalition than the Kyoto Protocol in its first commitment period. |
| Keywords: | climate change, coalition theory, integrated assessment model, Kyoto protocol. |
| JEL: | C6 C7 H4 Q5 |
| Date: | 2008–11 |
| URL: | http://d.repec.org/n?u=RePEc:cor:louvco:2008061&r=env |
| By: | Nelson, Gerald C. |
| Keywords: | Climate change, Copenhagen, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:2020br:16(1)&r=env |
| By: | Brännlund, Runar (Department of Economics, Umeå University); Lundgren, Tommy (Department of Forest Economics, Swedish University of Agricultural Sciences) |
| 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; the Porter hypothesis; productivity; profitability |
| JEL: | D20 H23 Q52 Q55 Q56 |
| Date: | 2009–03–26 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:umnees:0766&r=env |
| By: | Oggioni, Giorgia (UniversitŽ catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE)); Smeers, Yves (UniversitŽ catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE); ---) |
| Abstract: | Carbon leakage in this pape ris the phenomenon whereby Electricity Intensive Industries subject to harsh environmental standards move their activity or part of it to more environmentally lenient regions. Carbon leakage has been mentioned as a possible outcome of the EU Emission Trading Scheme. Different studies are underway to assess the reality of the phenomenon and to devise policies to mitigate its possible impact. One remedy, proposed by the Energy Intensive Industries is to combine free emission allowances with a pricing of electricity whereby energy emissions and transmission costs are bundled and sold on an average cost basis. The paper attempts to model this proposal. We cast the problem in a spatial model of the power sector where generators can develop new capacities, the transmission system is organized on a flowgate basis, emission allowances are auctioned, except possibly for industries, and traded. The consumer market is decomposed in two segments. Industries purchase electricity according to some form of average cost price, the rest of the market is supplied at marginal cost. These equilibrium models are non convex. We present the models and discuss their properties. Companion papers report policy implications. |
| Keywords: | carbon leakage, emission trading scheme, electricity, energy policies, equilibrum, complementarity. |
| JEL: | C61 L23 O14 O33 |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:cor:louvco:2008076&r=env |
| By: | Cole, Scott (Department of Economics, Umeå University); Brännlund, Runar (Department of Economics, Umeå University) |
| Abstract: | Several countries are responding to the climate change threat with various policy measures (e.g., taxes, permit trading, regulations, information campaigns, etc). While the effectiveness of different measures (instruments) has been studied extensively, very little research exists related to public preferences for alternative measures. This paper describes the results of a pilot study to determine whether a choice experiment might be a feasible approach for measuring preferences for carbon dioxide reduction policies, while ensuring careful consideration of the budget constraint facing households. We focus on estimating the public’s marginal utilities and implicit prices for a select group of attributes that describe climate policy measures in general. The results from the pilot study indicate that when respondents trade-off the cost of alternative and unlabeled policy measures, they are willing to pay for those that encourage (1) the development of environmentally-friendly technology and (2) climate awareness among the Swedish population. Finding (1) could be interpreted to mean public support for market-based measures (e.g., taxes and permit trading) while finding (2) seems to support the use of information in the design of climate policy measures in order to encourage carbon dioxide-reducing behavior. Finally, our pilot study assumed that respondents’ preferences for the cost-sharing burden (equity) of measures might be defined in terms of an individual’s ability to pay. Given this assumption, our results indicate weak preferences for non-regressive cost distribution, but progressive cost distribution had no effect on choice. We offer several possible conclusions from this preliminary investigation into climate policy preferences. |
| Keywords: | market-based mechanisms; information effects; equity; choice experiment; preferences |
| JEL: | Q48 Q50 Q54 Q55 |
| Date: | 2009–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:umnees:0767&r=env |
| By: | Driml, Sally; Clouston, Beth; Amy, Bortman |
| Abstract: | The Queensland Government Environmental Offsets Policy provides an overarching framework for environmental offsets in Queensland. The policy provides a consistent and transparent approach to the use of offsets. It contains principles and guidelines for developing and applying more detailed ‘specific-issue’ policies for offsetting important environmental values such as vegetation or fish habitats. Currently, offsets use in Queensland can be characterised as a compliance mechanism as they are required to meet development conditions. Developers will face higher costs if they need an offset and this provides a greater incentive to avoid and minimise impacts on areas with significant environmental values. The paper canvasses opportunities to now move to develop efficient offset markets in Queensland. |
| Keywords: | environment, offsets, policy, market based instruments., |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:48378&r=env |
| By: | Minh Ha-Duong (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); Rodica Loisel (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: | Leakage is one of the main concerns of all parties involved with the development of Carbon Capture and Storage. From an economic point of view, Van der Zwaan and Gerlagh (2009) suggest that CCS remains a valuable option even with CO2 leakage rate as high as of a few % per year. But what is valuable is, ultimately, determined by social preferences and parameters that are beyond economic modeling. Examining the point of view of four stakeholder groups: industry, policy-makers, environmental NGOs and the general public, we conclude that there is a social agreement today: zero is the only acceptable carbon leakage rate. |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00348128_v1&r=env |
| By: | Andreas Freytag (Friedrich-Schiller-University Jena, Chair for Economic Policy); Christoph Vietze (Friedrich-Schiller-University Jena, Chair for Economic Policy); Wolfgang Völkl |
| Abstract: | The environmental discussion is increasingly extended to the question of how to preserve biodiversity. As sensible regulation of biodiversity utilization uses politically set incentive schemes, it is required to discus the monetary value of biodiversity. Consequently, the relation between economic incentives and biodiversity is in the focus of our paper. By using bird species as bio indicators we derive first empirical results. In sum, one still may conclude that indeed economic growth is harmful for biodiversity. This is at least in line with the first part of biodiversity Kuznets curve. However, the existence of good institutions (especially a high quality of regulation) can in part prevent this effect, which can be cautiously interpreted as a hint that economic growth is not necessarily related to losses of biodiversity. With good governmental institutions, these losses may be prevented or mitigated. |
| Keywords: | economic growth, institutions, development, biodiversity, cross country analysis |
| JEL: | O13 Q27 |
| Date: | 2009–03–27 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2009-025&r=env |
| By: | Reimund Schwarze; Gert G. Wagner |
| Abstract: | This paper provides an overview on the existing systems of natural hazards insurance in Europe, their structural characteristics and peculiarities. It also discusses the difficulties of an adaptation of these systems to climate change and a growing number of natural disasters. Using the case of Germany as an example, the paper demonstrates that the obstacles facing system change are numerous, including failure to recognise the role of state guarantees in enabling private insurance markets, mistaken legal objections against mandatory insurance, distributional conflicts between central and state governments and re-election considerations by politicians. The adjustments to new weather conditions should reflect existing differences in the regional and national insurance systems in the EU. 'Change in diversity’ is seen to offer the best chance to arrive at insurance systems which are prepared for climate change while being adapted to local particularities. Efforts to harmonise national and regional systems as well as top down EU initiatives are rejected in this paper. |
| Keywords: | Natural Hazards, Insurance, Climate Change, Europe, Germany |
| JEL: | G22 Q54 |
| Date: | 2009–02 |
| URL: | http://d.repec.org/n?u=RePEc:inn:wpaper:2009-06&r=env |
| By: | Pierre Villa |
| Abstract: | L’article aborde sous des angles multiples l’equivalence entre taxation et droits d’emission polluante : la premiere fixe les prix, les seconds les quantites. L’equivalence est plus formelle que substantielle. La fiscalite est le fait generateur. Le marche des droits n’existe pas spontanement et le prix y est instable parce que l’offre n’est pas independante de la demande. Il est manipulable aussi bien lors de la distribution des droits gratuits que lors des interventions au cours de la periode de conformite. Il ne peut exister qu’accompagne d’une fiscalite sur les emissions. Pour eviter ces inconvenients les droits doivent etre distribues par adjudication discriminante sans droits gratuits. La fiscalite ou le prix des droits sont une valeur reelle d’option correspondant au cout du changement de technique reduisant la pollution. Pour que ce cout conduise a une reduction de la pollution, il est necessaire de financer les activites d’innovation d’un montant superieur a la fiscalite environnementale afin de deplacer les facteurs de production vers cette activite. Comme la question de l’innovation est du meme ordre que pour l’extraction des energies fossiles, l’equivalence fiscale entre les taxes sur la pollution et l’energie est mediatisee par les taxes sur le capital qui operent les transferts de facteurs vers le secteur de la recherche qui peut etre non marchand. La decentralisation par le marche impose que la depollution ait un cout marchand. |
| Keywords: | Equivalence; droits d'emission echangeable; fiscalite de l'environnement |
| JEL: | E61 E62 |
| Date: | 2009–03 |
| URL: | http://d.repec.org/n?u=RePEc:cii:cepidt:2009-05&r=env |
| By: | Kelly de Bruin; Rob Dellink; Shardul Agrawala |
| Abstract: | The present report seeks to inform critical questions with regard to policy mixes of investments in adaptation and mitigation, and how they might vary over time. This is facilitated here by examining adaptation within global Integrated Assessment Modelling frameworks. None of the existing Integrated Assessment Models (IAMs) captures adaptation satisfactorily. Many models do not specify the damages from climate change, and those that do mostly assume implicitly that adaptation is set at an “optimal” level that minimizes the sum total of the costs of adaptation and the residual climate damages that might occur. This report develops and applies a framework for the explicit incorporation of adaptation in Integrated Assessment Models (IAMs). It provides a consistent framework to investigate “optimal” balances between investments in mitigating climate change, investments in adapting to climate change and accepting (future) climate change damages. By including adaptation into IAMs these already powerful tools for policy analysis are further improved and the interactions between mitigation and adaptation can be analysed in more detail. To demonstrate the approach a framework for incorporating adaptation as a policy variable was developed for two IAMs– the global Dynamic Integrated model for Climate and the Economy (DICE) and its regional counterpart, the Regional Integrated model for Climate and the Economy (RICE). These modified models – AD-DICE and AD-RICE – are calibrated and then used in a number of policy simulations to examine the distribution of adaptation costs and the interactions between adaptation and mitigation. Using the limited information available in current models, and calibrating to a specific damage level, so-called adaptation cost curves are estimated for the world. Adaptation cost curves are also estimated for different regions, although given the limited information available to calibrate the regional curves these should be considered as rough approximations of the actual adaptation potential in the different regions. These adaptation cost curves reflect how different adaptation levels will provide a wedge between gross damages (i.e. damages that would occur in the absence of adaptation) and residual damages. The analysis presented suggests that a good adaptation policy matters especially when suboptimal mitigation policies are implemented. Similarly, a good mitigation strategy is more important when optimal adaptation levels are unattainable. The rationale for this result is that both policy control options can compensate to some extent for deviations from the efficient outcome caused by non-optimality of the other control option. It should be noted, however, that in many cases there are limits to adaptation with regard to the magnitude and rate of climate change. The higher the current value of damages, the more important mitigation is as a policy option in comparison to adaptation. The comparison between adaptation and mitigation therefore depends crucially on the assumptions in the model, and especially on the discount rate and the level of future damages. The policy simulations also suggest that to combat climate change in an efficient way, short term optimal policies would consist of a mixture of substantial investments in adaptation measures, coupled with investments in mitigation, even though the latter will only decrease damages in the longer term. The costs of inaction are high, and thus it is more important to start acting on mitigation and adaptation even when there is limited information on which to base the policies, than to ignore the problems climate change already poses. Ongoing increases in expected damages over time imply that adaptation is not an option that should be considered only for the coming decades, but it will be necessary to keep investing in adaptation options, as both the challenges and benefits of adaptation increase. The results of these policy simulations confirm the findings of the Intergovernmental Panel on Climate Change (IPCC) on the relationship between adaptation and mitigation as described in the Synthesis Report of the Fourth Assessment Report. The framework developed in this report opens the door for further simulations that examine adaptation cost issues within other, more complex IAMs. The model additions investigated in this report can also shed light on how the next generation of IAMs will look. These tools can also be further strengthened by the incorporation of more detailed regional knowledge on the impacts of climate change and of adaptation options.<BR>Le présent rapport entend apporter un éclairage sur certaines problématiques essentielles concernant les politiques qui associent investissements dans l’adaptation et investissements dans l’atténuation et leur évolution possible dans le temps. Un tel objectif suppose d’analyser l’adaptation dans le cadre de modèles d’évaluation intégrée. Aucun modèle d’évaluation intégrée ne rend compte de manière satisfaisante de l’adaptation. Bon nombre d’entre eux ne tiennent pas compte des dommages causés par le changement climatique et ceux qui le font partent implicitement de l’hypothèse que l’adaptation est fixée à un niveau « optimal » qui réduit au minimum le montant total représenté par les coûts d’adaptation et les dommages climatiques résiduels risquant d’apparaître. Dans ce rapport, un cadre permettant d’inclure explicitement l’adaptation dans les modèles d’évaluation intégrée a été créé et appliqué. On dispose ainsi d’un cadre cohérent pour examiner les compromis « optimaux » entre l’atténuation du changement climatique, l’adaptation au changement climatique et l’acceptation des (futurs) dommages induits par ce changement. Inclure l’adaptation dans les modèles d’évaluation intégrée permet d’améliorer ces instruments, déjà performants, d’analyse des politiques et d’examiner de manière plus précise les interactions entre adaptation et atténuation. Plus précisément, pour les besoins de ce rapport, un cadre a été mis au point pour inclure l’adaptation parmi les variables de politique publique dans deux modèles d’évaluation intégrée – le Dynamic Integrated model for Climate and the Economy (DICE), qui est un modèle mondial, et son équivalent régional, le Regional Integrated model of Climate and the Economy (RICE). Les modèles modifiés – AD-DICE et AD-RICE – ont été calibrés et utilisés dans plusieurs simulations de politiques pour examiner la composition des coûts de l’adaptation au changement climatique et les interactions entre adaptation et atténuation. Les courbes des coûts d’adaptation ont été estimées à l’échelle mondiale à partir des quelques informations disponibles dans les modèles actuels et après calibrage en fonction d’un niveau de dommages donné. Les mêmes courbes ont été estimées pour différentes régions mais doivent être considérées comme des évaluations approximatives du potentiel réel d’adaptation dans ces régions, compte tenu de la rareté des informations disponibles pour effectuer le calibrage. Ces courbes montrent l’écart que différents niveaux d’adaptation induisent entre les dommages bruts (ceux qui seraient subis en l’absence de mesures d’adaptation) et les dommages résiduels. L’analyse présentée démontre qu’il importe de mettre en place une bonne politique d’adaptation, en particulier lorsque les stratégies d’atténuation sont d’une efficacité insuffisante. De même, la mise en place d’une bonne stratégie d’atténuation est d’autant plus importante que les niveaux d’adaptation optimaux sont impossibles à atteindre. Ce résultat s’explique par le fait que l’une et l’autre de ces options peuvent, dans une certaine mesure, compenser les écarts par rapport au résultat efficient liés à l’insuffisance de l’autre option. Plus la valeur actuelle des dommages est élevée, moins l’adaptation occupe une place importante par rapport à l’atténuation. L’intérêt relatif des deux stratégies dépend beaucoup des hypothèses retenues dans le modèle, en particulier en ce qui concerne le taux d’actualisation et le niveau des futurs dommages. Les simulations de politiques montrent également que pour, lutter de manière efficiente contre le changement climatique, les politiques de court terme devraient associer des investissements substantiels dans des mesures d’adaptation et des investissements dans des mesures d’atténuation, même si la réduction des dommages induite par les mesures d’atténuation ne concerne que des périodes ultérieures. Le coût de l’inaction étant élevé, il vaut mieux agir même lorsque l’on dispose de peu d’informations à l’appui de l’élaboration des politiques qu’ignorer les problèmes qu’entraîne déjà le changement climatique. Les dommages attendus augmentant continûment au fil du temps, il convient de ne pas considérer que l’adaptation est une option à n’envisager que dans les décennies à venir et, au contraire, de continuer à investir dans les mesures d’adaptation puisque les bénéfices de ces mesures et les problèmes qu’elles posent augmentent. Les résultats de ces simulations de politique confirment les conclusions du Groupe d’experts intergouvernemental sur l’évolution du climat (GIEC) sur la relation entre l’adaptation et l’atténuation décrite dans le Résumé du Quatrième Rapport d’évaluation. Le cadre élaboré dans le présent rapport ouvre la voie à d’autres simulations, qui feront appel à des modèles d’évaluation intégrée plus complexes pour examiner les questions en lien avec les coûts de l’adaptation. Les modèles modifiés utilisés peuvent également fournir des informations sur ce que sera la prochaine génération de modèles d’évaluation intégrée. Ces outils peuvent aussi être renforcés en intégrant des connaissances régionales plus approfondies sur les effets du changement climatique et les options d’adaptation. |
| Keywords: | climate change, changement climatique, integrated assessment modelling, modèle d’évaluation intégrée, adaptation, adaptation |
| JEL: | Q25 Q28 |
| Date: | 2009–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:6-en&r=env |
| By: | OGGIONI, Giorgia (UniversitŽ catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE)); SMEERS, Yves (UniversitŽ catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE)) |
| Abstract: | The progressive relocation of part of the Energy Intensive Industries (EIIs) out of Europe is one of the possible consequences of the combination of emission charges and higher electricity prices entailed by the EU-Emission Trading Scheme (EU-ETS). In order to mitigate this effect, EIIs have asked for special power contracts whereby they would be supplied from dedicated power capacities at average (capacity, fuel, transmission and emission allowance) costs. We model this situation on a prototype power system calibrated on four countries of Central Western Europe. In order to capture the main feature of EIIs' demand, we separate the consumer market in two segments: EIIs and the rest. EIIs buy electricity at average cost price while the rest pays marginal cost. We consider two different types of EIIs' contractual arrangements: a single region wide and zonal average cost prices. We also analyze the cases where generators only rely on existing capacities or can invest in new ones. We find that these average cost contracts can indeed partially mitigate the incentive to relocate activities but with quite diverse regional impacts depending on different national power policies. Models are formulated as a non-monotone complementarity problems with endogenous energy, transmission and allowance prices and are implemented in GAMS. |
| Keywords: | average cost based contracts, carbon leakage, complementarity conditions, EU-ETS. |
| Date: | 2008–11 |
| URL: | http://d.repec.org/n?u=RePEc:cor:louvco:2008062&r=env |
| By: | Phouphet Kyophilavong (Faculty of Economics and Business Management, National University of Laos) |
| Abstract: | Wetlands are among the most important habitats for wildlife in the world. However, across Southeast Asia many wetland areas are under threat from water extraction and a range of other development pressures. This study finds that conserving wetlands can provide significant economic benefits. |
| Keywords: | wetland, conservation, Lao PDR |
| JEL: | Q50 Q51 Q56 Q57 |
| Date: | 2009–03 |
| URL: | http://d.repec.org/n?u=RePEc:eep:pbrief:pb200903&r=env |
| By: | Mehdi Abbas (LEPII - Laboratoire d'Economie de la Production et de l'Intégration Internationale - CNRS : FRE2664 - Université Pierre Mendès-France - Grenoble II) |
| Abstract: | Cette note aborde les différentes stratégies multilatérales que pourrait mettre en oeuvre l'Union européenne dans la phase préparatoire pour un accord post-Kyoto, et développe la proposition d'un système de gouvernance commun à la CCNUCC et à l'OMC. |
| Keywords: | changement climatique ; après-Kyoto ; gouvernance internationale ; accord international |
| Date: | 2009–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00371057_v1&r=env |
| By: | Leo Wangler (University of Jena, Germany) |
| Abstract: | This paper discusses aspects related to the green technology sector in Germany. In a ï¬rst step institutional reforms enabling diffusion of green technologies are analysed. Cost arguments are also taken into account. In a second step a theoretical model developed by Tanguay et al. (2004) is modiï¬ed in order to evaluate the efï¬ciency of the institutional setting in a political economy framework. The model is able to show that command and control policies (CCPs) are accompanied by cost-inefï¬ciencies depending on the political weight of the green technology sector. Because actual costs related to the support of green technologies are relatively low, the theoretical predictions of the model are moderated. Nevertheless, as additional money will be transferred to the green technology sector during the next decades, interest groups will gain additional political power and the problem of cost inefï¬ciency can therefore become more relevant. The paper gives important hints whether the CCP system installed in Germany is the right instrument in order to increase the share of energy produced with green technologies from 12.5% (in 2010) up to a level of 30% (in 2020). |
| Keywords: | Regulation, Renewable Energies, Green Technologies, EEG, SEG |
| JEL: | D72 H21 L52 Q28 Q48 |
| Date: | 2009–03–25 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2009-024&r=env |
| By: | Phouphet Kyophilavong (Faculty of Economics and Business Management, National University of Laos) |
| Abstract: | This study assesses the impact of irrigation on That Luang Marsh (TLM) in Vientiane, the capital city of the People’s Democratic Republic (PDR) of Laos. The study finds that the economic benefits provided by the marsh (particularly in terms of the fish it supplies to local people) far outweigh the benefits provided by the extraction of water for irrigation. As extraction of water for irrigation is threatening the ecology of the marsh and its ability to maintain a viable stock of fish, it is clear that the amount of water extracted for irrigation should be reduced. The report recommends that a minimum level for the water in TLM should be set to ensure the conservation of its precious wetland ecosystem. The report finds that, on balance, this would have a positive impact on the livelihoods of local people. This means that the conservation of the marsh makes good economic sense. To help the farmers who would be negatively affected by these measures, the report shows how they could be trained to use irrigation water more effectively, grow alternative crops that require less water than rice, catch fish and collect vegetables. |
| Keywords: | wetland, conservation, Lao PDR |
| JEL: | Q50 Q51 Q56 Q57 |
| Date: | 2009–03 |
| URL: | http://d.repec.org/n?u=RePEc:eep:report:rr200903&r=env |