|
on Environmental Economics |
| By: | Searchinger, Timothy D.; Heimlich, Ralph |
| Keywords: | Environmental Economics and Policy, Land Economics/Use, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ags:fflc08:49099&r=env |
| By: | Kurt Van Dender; Philippe Crist |
| Abstract: | Transport activities have adverse environmental and health impacts, of which local and regional air pollution, climate change, and noise impacts are the most important. This paper is a non-comprehensive overview of existing and potential policies to deal with these negative impacts, with a focus on “international transport”. We define “international transport” as those transport activities that are mainly derived from the globalization of economic activity, not as cross-border transport flows in a more narrow sense. We discuss surface transport, aviation, and maritime transport. The overview is not comprehensive: we focus on climate change, treating other adverse impacts (including aviation noise and local and regional pollution from shipping) more succinctly. This does not reflect a judgment on which impacts are more or less important policy problems, but rather policy interest and the authors’ expertise. |
| Date: | 2009–06 |
| URL: | http://d.repec.org/n?u=RePEc:oec:itfaaa:2009/9-en&r=env |
| By: | McCarl, Bruce |
| Abstract: | Agriculture may help mitigate climate change risks by reducing net greenhouse gas (GHG) emissions (McCarl and Schneider, 2000). One way of doing this is that agriculture may provide substitute products that can replace fossil fuel intensive products or production processes. One such possibility involves providing feedstocks for conversion into consumable forms of energy, where the feedstocks are agriculturally produced products, crop residues, wastes, or processing byproducts. Such items may be used to generate bioenergy encompassing the possibilities where feedstocks are used: ⢠to fuel electrical power plants; ⢠as inputs into processes making liquid transportation fuels e.g., ethanol or biodiesel. Employing agriculturally produced products in such a way generally involves recycling of carbon dioxide (CO2) because the photosynthetic process of plant growth removes CO2 from the atmosphere while combustion releases it. This has implications for the need for permits for GHG emissions from energy generation or use (Assuming we ever have such a program). Namely: ⢠Direct net emissions from biofeedstock combustion are virtually zero because the carbon released is recycled atmospheric carbon. As such this combustion may not require electrical utilities or liquid fuel users/producers to have emissions permits. ⢠Use of fossil fuels for power and liquid fuels releases substantial CO2 and would require emission rights. This would mean that the willingness to pay for agricultural commodities on behalf of those using them for bioenergy use would rise because their use would not require acquisition or use of potentially costly/valuable emissions permits. As a result, biofeedstocks may be a way that energy firms can cost effectively reduce GHG liabilities and also be a source of agricultural income. But, before wholeheartedly embracing biofuels as a GHG reducing force, one fully account for the GHGs emitted when raising feedstocks, transporting them to a plant and transforming them into bioenergy. This is the domain of lifecycle accounting and the subject of this conference. However, lifecycle accounting can provide biased accounting of such phenomenon. It is typically done assuming nothing changes elsewhere in the economy or world. In reality, large biofuel programs embody many violations of this assumption. For example, the recent corn boom induced changes in exports, reactions from foreign producers, and changes in livestock herds. Such issues involve a concept called leakage in the international GHG control. Additionally, these issues imply that a full analysis needs to conduct a broader sectoral level â partial (or perhaps economy wide general) equilibrium form of lifecycle accounting. Finally, biofuel opportunities embody differential degrees of GHG offsets. This is apparent by the widespread belief that cellulosic ethanol has a âbetterâ net energy and GHG balance than does corn ethanol. This chapter addresses these issues by discussing lifecycle accounting relative to different fuels, leakage concepts and full greenhouse gas accounting in a partial equilibrium setting. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ags:fflc08:49100&r=env |
| By: | Ogle, Stephen M.; Del Grosso, Stephen J.; Adler, Paul R.; Parton, William J. |
| Keywords: | Crop Production/Industries, Environmental Economics and Policy, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ags:fflc08:49097&r=env |
| By: | Brohmann, Bettina; Heinzle, Stefanie; Rennings, Klaus; Schleich, Joachim; Wüstenhagen, Rolf |
| Abstract: | The focus of the paper is on the individual decision of energy consumers, and it’s relation to sustainable consumption. Consumer behavior is based on individual decisions, but it depends largely on supply-side measures and an appropriate infrastructure (e.g. the availability of energy-efficient household equipment) and on socio-political factors (e.g. if systems of emissions trading or eco-labels exist). We derive some hypotheses on the determinants of sustainable energy consumption in residential buildings from a review of the empirical literature on the diffusion of energy efficient activities. While there is agreement on a lot of factors, the role of environmental attitudes and environmental behavior remains uncertain. Thus research needs are derived respectively. Finally, we specify these hypotheses for three specific technologies of sustainable energy consumption: Domestic appliances, micro-power and green electricity. |
| Keywords: | Sustainable consumption, consumer behaviour, domestic appliances, micro-power, green electricity |
| JEL: | Q01 Q41 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:7538&r=env |
| By: | Feng, Hongli; Rubin, Ofir D.; Babcock, Bruce A. |
| Abstract: | As the United States begins to move towards putting an economic value on reducing greenhouse gas (GHG) emissions, the need for improved accounting standards becomes acute. Lifecycle analysis (LCA), which involves the systematic collection and interpretation of material flow in all relevant processes of a product, has become the accepted procedure to use to determine greenhouse gas emissions of products ranging from transportation fuels, to building materials, to food production (Farrell et al., 2006; Hill et al., 2006; Owen, 2004). The basic motivation of LCA is that, to conduct a fair assessment of the environmental impacts of a product, it is necessary to take into account all of the processes throughout the productâs lifespan, including the extraction of raw material, the manufacturing processes that convert raw material into the product, and the utilization and disposal of the product. For many products, including fossil fuels, a standard LCA is generally all that is needed to understand greenhouse gas emission implications. Accounting procedures for biological-based products, however, require additional considerations. Consider a country that expands production of an agricultural feedstock to produce biofuels. To understand how such an endeavor affects GHG emissions requires analysis of the greenhouse gas contents of all the inputs used to produce the feedstock as well as the inputs used to create the fuel from the feedstock. This is as far as most LCAs go. But expanded production of the feedstock does not just magically happen. Either current uses of the feedstock must be reduced to free up supply for production of biofuels, or additional production must occur. If current uses are reduced, then the greenhouse gas emissions associated with the current use should be credited towards the biofuels because they are no longer being emitted. However, if an alternative product is used as a substitute for the current use of the feedstock then the GHG implications of increased production of the substitute should also be counted as a debit. If current use is maintained, then the implications of expanded production of the feedstock need to be accounted for, including changes in crop acreage, production practices, and whether new land is brought into production. And lastly, if changes in land use in the biofuels-expanding region result in changed land-use decisions in other regions, then the GHG implications in these regions may have to be accounted for, depending on the definition of system boundary in an analysis. The need for accounting systems that take into account changes in production systems has been recognized (Delucchi, 2004; Feehan and Peterson, 2004). In a recent report, the Clean Air Task Force noted that âcurrent lifecycle analyses do not account for greenhouse gas emissions and other global warming impacts that may be caused by changes in land use; food, fuel, and materials markets (Lewis, 2007).â Righelato and Spracklen (2007) showed that carbon changes related to land use changes could outweigh the avoided emissions through the substitution of petroleum fuel by biofuels. The contribution of this chapter is two-fold: (i) to develop the beginnings of a protocol for system-wide accounting (SWA) systems that incorporates land use and other changes not included in LCA, and (ii) to apply the protocol to a case study of ethanol refined from Iowa corn. We will first lay out the basics of LCA for corn ethanol and gasoline. This serves as the beginning point for SWA because the components of LCA results can be used in SWA. We then assess the GHG impacts of ethanol from Iowa corn based on both types of accounting systems. |
| Keywords: | Crop Production/Industries, Environmental Economics and Policy, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ags:fflc08:49101&r=env |
| By: | Considine , Timothy J.; Larson, Donald F. |
| Abstract: | The use of carbon-intense fuels by the power sector contributes significantly to the greenhouse gas emissions of most countries. For this reason, the sector is often key to initial efforts to regulate emissions. But how long does it take before new regulatory incentives result in a switch to less carbon intense fuels? This study examines fuel switching in electricity production following the introduction of the European Union’s Emissions Trading System, a cap-and-trade regulatory framework for greenhouse gas emissions. The empirical analysis examines the demand for carbon permits, carbon based fuels, and carbon-free energy for 12 European countries using monthly data on fuel use, prices, and electricity generation. A short-run restricted cost function is estimated in which carbon permits, high-carbon fuels, and low-carbon fuels are variable inputs, conditional on quasi-fixed carbon-free energy production from nuclear, hydro, and renewable energy capacity. The results indicate that prices for permits and fuels affect the composition of inputs in a statistically significant way. Even so, the analysis suggests that the industry’s fuel-switching capabilities are limited in the short run as is the scope for introducing new technologies. This is because of the dominant role that past irreversible investments play in determining power-generating capacity. Moreover, the results suggest that, because the capacity for fuel substitution is limited, the impact of carbon emission limits on electricity prices can be significant if fuel prices increase together with carbon permit prices. The estimates suggest that for every 10 percent rise in carbon and fuel prices, the marginal cost of electric power generation increases by 8 percent in the short run. The European experience points to the importance of starting early down a low-carbon path and of policies that introduce flexibility in how emission reductions are achieved. |
| Keywords: | Energy Production and Transportation,Energy and Environment,Environment and Energy Efficiency,Carbon Policy and Trading,Markets and Market Access |
| Date: | 2009–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4957&r=env |
| By: | Jean-Marc Burniaux; Jean Château; Rob Dellink; Romain Duval; Stéphanie Jamet |
| Abstract: | This paper examines the cost of a range of national, regional and global mitigation policies and the corresponding incentives for countries to participate in ambitious international mitigation actions. The paper illustrates the scope for available instruments to strengthen these incentives and discusses ways to overcome barriers to the development of an international carbon price, based on the quantitative assessment from two global and sectorially-disaggregated CGE models. Key step towards the emergence of a single international carbon price will most likely involve the phasing out of subsidies of fossil fuel consumption and various forms of linking between regional carbon markets, ranging from direct linking of existing emission trading systems to more indirect forms through the use of sectoral crediting mechanisms. The paper discusses regulatory issues raised by the expansion of emission trading and crediting schemes as well as the complementary contribution of non-market based instruments such as the imposition of technical standards and R&D policies. Finally, the paper emphasises the important role of international transfers, not least to overcome the relatively strong economic incentives in some countries to free ride on other regions mitigation actions. While they can take various explicit or implicit forms, transfers made primarily through market mechanisms, for instance via the allocation of binding emission reduction commitments across countries, would be most cost-effective.<P>L'économie de l'atténuation du changement climatique : comment élaborer l'action nécessaire au niveau mondial avec un rapport coût-efficacité optimal ?<BR>Cette étude examine le coût d’un éventail de mesures prises au plan national, régional et mondial pour réduire les émissions de gaz à effet de serre, ainsi que les incitations pour les pays à participer à des actions mondiales ambitieuses de mitigation. L’étude illustre la capacité des instruments disponibles à renforcer ces incitations et discute des moyens pour surmonter les barrières au développement d’un prix mondial du carbone, sur la base d’une évaluation quantitative à partir de deux modèles d’équilibre général désagrégés au plan sectoriel. Parmi les étapes essentielles vers l’émergence d’un prix mondial unique du carbone on trouvera vraisemblablement la suppression des subventions à la consommation des combustibles fossiles ainsi que des formes diverses d'intégration des marchés du carbone régionaux, allant des couplages directs des systèmes d’échange de droits d’émission à des formes plus indirectes par le biais d’un mécanisme de crédits d’émission. Cette étude examine les questions de réglementation soulevées par l’expansion des systèmes d’échange de droits et de crédits d’émissions ainsi que le rôle complémentaire politique de R&D. |
| Keywords: | climate change, changement climatique, carbon leakage, climate policy, fuites de carbone, politique climatique, energy subsidies, crediting mechanism, sectoral approach, approche sectorielle, deforestation, déforestation, intégration des marchés du carbone |
| JEL: | H23 H41 O13 O3 Q32 Q34 Q54 |
| Date: | 2009–06–02 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:701-en&r=env |
| By: | Stéphane Couture; Arnaud Reynaud |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:ler:wpaper:09.09.285&r=env |
| By: | Jonathan Aldred (Department of Land Economy, University of Cambridge) |
| Abstract: | The Stern Review on the economics of climate change (hereafter ‘Stern’) has received much attention regarding its potential political impact.1 It has also been extensively discussed among academic economists because its conclusions are more radical, in terms of action to mitigate climate change, than previous orthodox economic analyses. This paper aims to contribute to the debate by critically assessing three key features of climate change CBA, with particular reference to Stern: monetary valuation of human life, discounting, and the treatment of risk and uncertainty. This assessment reveals some common themes, which are examined in the final section. They concern the tensions which emerge in climate change CBA between ethical arguments, market-based preferences, and the claims of CBA to scientific objectivity. |
| Keywords: | Climate change, Stern report, Cost benefit analysis, discounting, uncertainty |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:lnd:wpaper:442009&r=env |
| By: | Philippe Crist |
| Abstract: | In this paper, we discuss the greenhouse gas emission reduction potential from international shipping. Drawing from the International Maritime Organization’s most recent assessment of maritime greenhouse gas emissions and other sources, we investigate the current level of emissions from international maritime activity and look at factors influencing future emission levels such as projected activity levels, GHG-reducing technology options and the rate of their uptake, operational measures – foremost speed reduction – and fuel switching. We do not discuss the marginal abatement costs of maritime GHG-reduction measures – with the exception of speed reduction – due to insufficient evidence. Finally, we discuss factors that may influence international responses to maritime GHG reduction policies, though these are discussed more thoroughly in a companion paper (Kågeson, 2009). CO2 emissions from maritime transport are larger than has previously been estimated The IMO finds that international maritime activity accounted for 843 Mt of CO2 in 2007 or 45% more than previous emission estimates from marine bunkers. This finding, for illustrative purposes, places 2007 international shipping emissions between the 2005 national emissions of India and Germany. International shipping accounts for approximately 2.7% of world CO2 emissions from fossil fuel combustion with all shipping activity (fishing, domestic and international) representing approximately 3.3% of total CO2 from fuel combustion. Despite projected efficiency improvements, the IMO projects that CO2 emissions from international maritime activity will grow through 2050 though this growth may significantly slowed through uptake of fuel efficient technologies and operating procedures. |
| Date: | 2009–06 |
| URL: | http://d.repec.org/n?u=RePEc:oec:itfaaa:2009/11-en&r=env |
| By: | Aditi Sengupta (SMU) |
| Abstract: | We examine the effect of more stringent environmental regulation on the dynamic structure of a deterministic competitive industry with endogenous entry and exit where firms invest in reduction of their future compliance cost. The level of regulation is exogenously fixed and constant over time. The compliance cost of a firm at each point of time depends on its current output, its accumulated past investment and the level of regulation. We outline sufficient conditions under which industries with more stringent regulation are associated with higher investment in compliance cost reduction and higher shake-out of firms over time; the opposite may be true under certain circumstances. Our analysis indicates that the effect of a change in regulation on market structure may be lagged over time. |
| Keywords: | Environmental regulation; Industry dynamics; Investment; Shake-out. |
| JEL: | L51 L52 O33 Q52 |
| Date: | 2009–06 |
| URL: | http://d.repec.org/n?u=RePEc:smu:ecowpa:0903&r=env |
| By: | Sukanya Das; Rabindra N. Bhattacharya; Ekin Birol (Department of Land Economy, University of Cambridge) |
| Abstract: | This paper employs a stated preference environmental valuation method, namely the choice experiment method, to estimate local public’s willingness to pay (WTP) for improvements in the capacity of a sewage treatment plant (STP) in Chandernagore Municipality, located on the banks of the River Ganga. A pilot choice experiment study is conducted with 100 randomly selected Chandernagore residents and the data are analysed using the conditional logit model. The results reveal that residents of this municipality are WTP significant amounts in terms of higher monthly municipality taxes, in order to upgrade the capacity of the current STP to one that treats higher quantities of wastewater and at a higher quality, before discarding in the Ganga. With the use of the benefits transfer method, the results of this case study can provide information on the economic benefits that might be generated through the improvement of STPs in other similar municipalities located along the banks of the Ganga. Overall, the results reported in this paper have important policy implications for reducing pollution, and hence environmental and health risks that are currently threatening the sustainability of the economic, cultural and religious values this sacred river generates. |
| Keywords: | choice experiment method, conditional logit model, River Ganga, sewage treatment plant, water quality, water quantity |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:lnd:wpaper:432009&r=env |
| By: | David Maddison; Eleanor Field; Zubaida Choudhury (Department of Land Economy, University of Cambridge); Unai Pascual (Department of Land Economy, University of Cambridge) |
| Abstract: | The Ganges Delta of Bangladesh faces a major environmental and development problem from arsenic groundwater contamination. Here we address the rural population’s health preferences and estimate how much a given risk of arsenicosis would have to be postponed to make that risk acceptable. We also derive implicit rates of time preference associated with this health hazard based on an experimental field study in Bangladesh. Results suggest that households exposed to arsenic contaminated water do trade-off risk against latency of developing arsenicosis. The results can also be interpreted as if households face a time-varying (hyperbolic) pure rate of time preference. |
| Keywords: | Time varying discounting, Water pollution, Arsenic contamination, Bangladesh |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:lnd:wpaper:452009&r=env |
| By: | Rajagopal, Deepak; Zilberman, David |
| Abstract: | A key argument in the societal debate against polices to support biofuels is that production of these alternative fuels may in fact consume more energy than they generate and emit more greenhouse gases than they sequester (Fargione et al., 2008; Searchinger et al., 2008; Rajagopal and Zilberman, 2007; Farrell et al., 2006; Pimentel and Patzek, 2005). Metrics like net energy value, net carbon value and net petroleum offset are the basis for comparing the various fuels and are the source of these debates. The technique that underlies the calculation of these metrics is called lifecycle assessment or lifecycle analysis (LCA). A central aspect of LCA (described in detail in the next section) is it assumes linear technologies and produces outcomes that are numbers â how many units of energy are needed to produce a liter of ethanol fuel from a ton of corn. But as basic economics suggests, under reasonable conditions of some substitution between inputs and processes in production, this ratio is not a number but a function of prices. For instance, with energy being a ubiquitous input to production, a change in the relative price of different energy sources or with respect to other inputs will induce adjustments in the form of fuel switching, substitution between capital, energy and labor etc. This switching can occur at several levels in the production chain of a commodity. This will obviously alter the net carbon indicator for a fuel in the future. Also current LCA outcomes change only if the physical quantities of various inputs such as quantity of coal or electricity used in calculating LCA change. In other words, today LCA is capable of answering, how does a 10% decrease in the share of natural gas in the average electricity mix decrease the net carbon value of ethanol? But it is not capable of answering, if natural gas prices increase by 10% what is the impact on the net carbon value of ethanol? Obviously the latter is more intuitive and useful way of framing the question than the former from a policy standpoint. In this paper, we introduce a framework which can be used to derive LCA indicators directly as a function of underlying economic parameters and make it easier to simulate the impact of policies like pollution taxes and fuel mandates which in one way or another ultimately alter the relative price of commodities. Next we provide some background on current LCA literature. We then introduce a micro-economics based LCA that integrates prices directly into the lifecycle framework. We point out some implications of our model with simple illustrations. We finally describe directions for future work. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ags:fflc08:49090&r=env |
| By: | Hyytiainen, Kari; Ahtiainen, Heini; Heikkila, Jaakko; Helin, Janne; Huhtala, Anni; Iho, Antti; Koikkalainen, Kauko; Miettinen, Antti; Pouta, Eija; Vesterinen, Janne |
| Abstract: | This study introduces a prototype model for evaluating policies to abate agricultural nutrients in the Baltic Sea from a Finnish national point of view. The stochastic simulation model integrates nutrient dynamics of nitrogen and phosphorus in the sea basins adjoining the Finnish coast, nutrient loads from land and other sources, benefits from nutrient abatement (in the form of recreation and other ecosystem services) and the costs of agricultural abatement activities. The aim of this study is to present the overall structure of the model and to demonstrate its potential using preliminary parameters. The model is made flexible for further improvements in all of its ecological and economic components. Results of a sensitivity analysis suggest that investments in reducing the nutrient runoff from arable land in Finland would become profitable only if Finlandâs neighbors in the northern Baltic committed themselves to similar reductions. Environmental investments for improving water quality yield the highest returns for the Bothnian Bay and the Gulf of Finland, and smaller returns for the Bothnian Sea. In the Bothnian Bay, the abatement activities become profitable because the riverine loads from Finland represent a high proportion of the total nutrient loads. In the Gulf of Finland, this proportion is low, but the size of the coastal population benefiting from improved water quality is high. |
| Keywords: | ecosystem services, nutrient abatement, Monte Carlo simulation, recreation, valuation, Environmental Economics and Policy, Research Methods/ Statistical Methods, |
| Date: | 2009–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:mttfdp:49896&r=env |
| By: | Arthur J. Caplan (Department of Applied Economics, Utah State University); John Gilbert (Department of Economics and Finance, Utah State University); Devalina Chatterjee (Department of Applied Economics, Utah State University) |
| Abstract: | This paper provides examples of both parametric and non-parametric tests for economies of scale in the control of non-point pollution. Because field-level control costs and control effectiveness are uncertain from the regulator's perspective (due to the existence of asymmetric information), we test for economies of scale in the correlations between control costs per unit abated (i.e., average control cost), on the one hand, and field size, estimated delivered phosphorous (TP) load per field, and estimated delivered TP load per acre, respectively, on the other. Our dataset consists of loading and delivery ratio estimates for over 12,000 fields owned by 5,900 farmers located in the Bear River Basin, Utah. The estimates - derived from a newly developed hydrologic model of the basin - are then combined with control cost and best management practice (BMP) effectiveness estimates to create a basin-wide profile. We find statistical evidence of a negative relationship between average control cost and both delivered TP load per field and per acre, i.e., larger TP loads per field and per acre are associated with lower average control costs. This suggests that ranking fields according to delivered TP loads per field and per acre are, all else equal, consistent with prioritizing BMP subsidies in a cost effective manner. Evidence is mixed regarding the statistical relationship between average control cost and field size, which is the traditional way in which economies of scale are assessed. Implications of our findings for the management of BMP subsidy programs such as the Environmental Quality Incentives Program (EQIP) are discussed. |
| Keywords: | economies-of-scale; non-point pollution; delivered load; control costs |
| JEL: | Q12 Q25 Q53 |
| Date: | 2009–05–26 |
| URL: | http://d.repec.org/n?u=RePEc:usu:wpaper:2009-01&r=env |
| By: | Wang, Michael Q. |
| Abstract: | The use of fuel ethanol in the United States has increased from fewer than 200 million gallons (gal) at the beginning of the US fuel ethanol program in 1980 to 6.5 billion gal in 2007. The recent federally adopted Energy Independence and Security Act of 2007 established the goal of 36 billion gal of biofuel use in the United States by 2022, of which 15 billion gal will be corn-based ethanol. In addition, the promotion of low-carbon fuel standards (LCFS) by California and several other states could help increased use of ethanol, especially cellulosic ethanol. In the United States, corn ethanol is produced through the fermentation of corn in dry and wet milling plants, most of which are located in the Midwest. In 2006, about 82% of the total US fuel ethanol was produced from dry milling plants, and the remaining 18% from wet milling plants (Renewable Fuels Association, 2007). Ethanol can be produced from cellulosic biomass through fermentation of cellulose and semicellulose. The US Department of Energy (DOE) has been undertaking extensive research and development (R&D) efforts for cellulosic ethanol technologies. Since 1997, Argonne National Laboratory has been evaluating the energy and emission effects of fuel ethanol relative to those of petroleum gasoline. In 1997, Argonne National Laboratory published its findings from an ethanol analysis conducted for the State of Illinois (Wang et al., 1997). With DOE support, Argonne National Laboratory has continued its efforts to analyze the effects of fuel ethanol (Wang et al., 1999a,b; Wang et al., 2003; Wu et al., 2005; and Wu et al., 2006). As fuel ethanol production and usage in the United States have rapidly expanded in the past several years, corn ethanol plant technologies have been evolving. In addition, while corn yield per acre continues to increase, concerns have been raised that increased corn farming could result in switches in crop farming in the United States and potential land use changes in other countries. These factors together could cause different energy and greenhouse gas (GHG) emission results for corn ethanol. This chapter presents Argonne National Laboratoryâs updated energy and GHG emission results for fuel ethanol. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ags:fflc08:49098&r=env |
| By: | Rosa, Franco |
| Abstract: | The heavy dependence of the EU countries from the imported oil, a growing economic vulnerability caused by wider and almost unforeseeable price changes of the crude oil commodity, the global warming are some of the reasons that have induced the policy makers to incentive the production of domestic biofuels derived from agricultural biomasses. This paper analyzes the supply chain model of biofuel production by focussing the economic and environment potential benefits that production and use of these biofues might have for the primary sector and the society. The suggestions are that biofuels can be a promising renewable sources of energy; the positive perceived advantages are: less dependence on turbulent exporting countries, higher security from diversified domestic sources of energy, some environmental benefits derived from the capture of GHG emission. This paper is structured as follows: paragraphs 1 and 2 describe the scenario and the theoretical background; paragraphs 3 and 4 illustrates the problem specification and the algebraic formulation of the LP model addressed to test the sustainability of the supply chain named Biorefinery under the three assumptions hypothesized at the beginning, paragraph 5 reports some of the experimental results with comments and paragraphs 6 describes the main conclusions. This model of cogeneration is more efficient in terms of energy compared to other biofuel chains, and is more socially acceptable because fuel and food productions are complementary each others. The partial energy balance of the fuel and biogas are positive while the livestock energy balance is heavily energy consuming, the total energy balance is neutral. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Industrial Organization, |
| Date: | 2008–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eea110:49889&r=env |
| By: | Kloos, Julia; Tsegai, Daniel W. |
| Abstract: | Using household survey data, this study investigates preferences for domestic water services in the Middle Olifants sub-basin of South Africa. Water is a relative scarce resource in South Africa that is distributed unevenly both geographically and seasonally as well as socio-politically. For a water management addressing the policy objectives of efficiency in use, equity in access and benefits and long-term sustainability, economic valuation of the different water uses is required. In order to detect households' preferences, a choice experiment was conducted. Results suggested the presence of preference heterogeneity and therefore, a latent class model was applied, dividing households into homogeneous groups according to their preferences. Four distinct groups of households could be found which differ significantly in terms of their socio-economic characteristics, their attitudes toward pricing of water and their satisfaction with current water service levels. Willingness to pay (WTP) estimates of different water service characteristics in all groups indicate that households are willing to pay higher prices for a better and more reliable water services provision. But the amount households are willing to pay differs among the groups. This information is helpful for policy-makers to enable the design of water services in the Middle Olifants according to preferences of local households. Besides, WTP estimation can provide a basis for setting water tariffs. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ubzefd:49970&r=env |
| By: | Seo, John; Mahul, Olivier |
| Abstract: | Catastrophe risk models allow insurers, reinsurers and governments to assess the risk of loss from catastrophic events, such as hurricanes. These models rely on computer technology and the latest earth and meteorological science information to generate thousands if not millions of simulated events. Recently observed hurricane activity, particularly in the 2004 and 2005 hurricane seasons, in conjunction with recently published scientific literature has led risk modelers to revisit their hurricane models and develop climate conditioned hurricane models. This paper discusses these climate conditioned hurricane models and compares their risk estimates to those of base normal hurricane models. This comparison shows that the recent 50 year period of climate change has potentially increased North Atlantic hurricane frequency by 30 percent. However, such an increase in hurricane frequency would result in an increase in risk to human property that is equivalent to less than 10 years’ worth of US coastal property growth. Increases in potential extreme losses require the reinsurance industry to secure additional risk capital for these peak risks, resulting in the short term in lower risk capacity for developing countries. However, reinsurers and investors in catastrophe securities may still have a long-term interest in providing catastrophe coverage in middle and low-income countries as this allows reinsurers and investors to better diversify their catastrophe risk portfolios. |
| Keywords: | Natural Disasters,Hazard Risk Management,Insurance&Risk Mitigation,Disaster Management,Insurance Law |
| Date: | 2009–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4959&r=env |
| By: | Ronald Steenblik; Joy A. Kim |
| Abstract: | It is in every country's interest that the deployment of carbon-change-mitigation technologies (CCMTs) be accomplished at the lowest possible cost to society and that their diffusion be rapid. Reducing barriers to trade is one way to accomplish that, especially given that it is unlikely that every country will become proficient in the production of every CCMT. This study provides a preliminary assessment of the significance of tariff and non-tariff barriers to trade in a representative selection of CCMTs chosen from among those that have been identified by the IPCC and the IEA as having a large economic potential for mitigation, are globally traded, and can be easily adapted to national circumstances. Those examined in the report include: (a) technologies, such as gas-fired reciprocating engines, used in the co-production of both process (or district) heat and electric power (CHP); (b) technologies, such as pipes and meters, used in the production and delivery of heating and cooling at the scale of a city district (DHC); (c) technologies that harness solar energy to heat water or heat or cool the air in buildings (SHC); and (d) relatively energyefficient electric motors and related systems. The study finds that trade in CCMTs faces higher tariffs in some non-OECD countries than in OECD countries. Judging from information provided by exporters in response to a questionnaire, non-tariff measures are common, and in some countries are acting as barriers to trade. Overcoming some of the general measures that impede trade will take time. However, the problems that lax enforcement of intellectual property rights, cumbersome customs-clearance procedures and non-transparent government procurement create for trade in CCTMs should be regarded as providing additional reasons for importing countries to address these issues urgently. Finally, importers may need, at the same time, to examine their domestic policies in order to address behind-the-border impediments to the diffusion of CCMT technologies. |
| Date: | 2009–05–04 |
| URL: | http://d.repec.org/n?u=RePEc:oec:traaaa:2009/2-en&r=env |
| By: | Linz, Teresa; Tsegai, Daniel W. |
| Abstract: | This paper seeks to determine water demand of the mining sector in the Middle Olifants sub-basin of South Africa. Despite the growing economic importance of mining in the area, only little is known about its water demand and the role of water in the mines´ extrac-tion process. By means of econometric estimation water price elasticities as well as substi-tution possibilities between water and other inputs are derived to analyze the response of mines to changes in water tariffs. Using primary data, a translog cost function is estimated for five mines operating in the area. Cost share equations of each input are specified and estimated using Seemingly Unrelated Regression (SUR) method. The mean cost share of water for all five mines, with around 1%, is relatively small, reflecting the low water tariff and results show industrial water demand to be inelastic. Nevertheless, with water price elasticity values ranging from -0.77 to -0.95 for the five mines, there is a potential to influ-ence water use patterns through higher tariffs. As mines are water intensive industries, pos-sible water savings owing to raised water tariffs should not be neglected. Water intake is found to be a substitute for labor and capital for most of the mines, implying that capital investments in water saving technologies might be an alternative means to reduce water intake of the mining sector. |
| Keywords: | Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2009–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ubzefd:49927&r=env |
| By: | Makena Coffman (Department of Urban and Regional Planning, University of Hawaii at Manoa; University of Hawaii Economic Research Organization); Ilan Noy (Department of Economics, University of Hawaii at Manoa) |
| Abstract: | Hurricane Iniki, that hit the island of Kauai on September 11th, 1992, was the strongest hurricane that hit the Hawaiian Islands in recorded history, and the one that wrought the most damage, estimated at 7.4 billion (in 2008 US$). We provide an assessment of Hawaii’s vulnerability to disasters using a framework developed for small islands. In addition, we provide an analysis of the ex post impact of Iniki on the economy of Kauai. Using indicators such as visitor arrivals and agricultural production, we show that Kauai’s economy only returned to pre-Iniki levels 7-8 years after the storm. Today, it has yet to recover in terms of population growth. As an island state, Hawaii is particularly susceptible to the occurrence of disasters. Even more worrying, Hawaii’s dependence on tourism, narrow export base, high level of imports and relatively small agricultural sector make Hawaii much more likely to struggle to recover in the aftermath. By thoroughly learning from Kauai’s experience and the state’s vulnerabilities, we hope we can better prepare for likely future disaster events. |
| Keywords: | natural disasters, hurricane, Iniki, Kauai, Hawaii, climate change, global warming |
| JEL: | Q54 R50 |
| Date: | 2009–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:hai:wpaper:200904&r=env |
| By: | Quariguasi Frota Neto, J.; Bloemhof-Ruwaard, J.M. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University) |
| Abstract: | Remanufacturing has long been perceived as an environmentally-friendly initiative. The question of how remanufacturing moderates the relation between environmental impact and economic returns is still unanswered, however. In this paper, we focus our attention on the electronics industry. In particular, we take a close look at remanufacturing within the mobile and personal computers industries. We analyze whether remanufacturing for such products substantially mitigates the energy used in the life-cycle of these products, or whether as in most electrical equipments, it can only marginally contribute to such reduction. Using both process-based and economic input-output data, we show that remanufacturing significantly reduces total energy consumption. Furthermore, we test the ubiquitous hypothesis that the market of remanufactured products is composed by products that have been downgraded and are therefore sold for prices below the average price of the new equipments. Using data from 9,900 real transactions obtained from eBay, we show that this assumption is true for personal computers, but not for mobiles. More importantly, despite the fact that remanufactured products may suffer downgrading, and that consumers therefore command a high discount for them, the economic output per energy unit used is still higher for remanufactured products. We thus conclude that remanufacturing for these two products is not only environmentally friendly, but also eco-efficient. |
| Keywords: | sustainability;eco-efficiency;remanufacturing;closed-loop supply chains |
| Date: | 2009–05–11 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:eureri:1765015912&r=env |