|
on Environmental Economics |
| By: | Lamia Kamal-Chaoui; Alexis Robert |
| Abstract: | Cities are part of the climate change problem, but they are also a key part of the solution. This report offers a comprehensive analysis of how cities and metropolitan regions can change the way we think about responding to climate change. Cities consume the vast majority of global energy and are therefore major contributors of greenhouse gas emissions. At the same time, the exposed infrastructure and prevalent coastal location of many cities makes them common targets for climate change impacts such as sea level rise and fiercer storms. This report illustrates how local involvement through ?climate-conscious? urban planning and management can help achieve national climate goals and minimise tradeoffs between environmental and economic priorities. Six main chapters analyse the link between urbanisation, energy use and CO2 emissions; assess the potential contribution of local policies in reducing global energy demand and the trade-offs between economic and environmental objectives at the local scale; discuss complementary and mutually reinforcing policies such as the combination of compact growth policies with those that improve mass transit linkages; and evaluate a number of tools, including the ?greening? of existing fiscal policies, financing arrangements to combat climate change at the local level, and green innovation and jobs programmes. One of the main messages of this report is that urban policies (e.g. densification or congestion charges) can complement global climate policies (e.g. a carbon tax) by reducing global energy demand, CO2 emissions and the overall abatement costs of reducing carbon emissions. To inform the groundswell of local climate change action planning, the report highlights best practices principally from OECD member countries but also from certain non-member countries. |
| Keywords: | cities, climate change, global warming, government policy, planning, regional economics, regional, sustainable development, territorial, urban sustainability, urban |
| JEL: | Q42 Q48 Q54 Q55 Q58 R00 |
| Date: | 2009–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:oec:govaab:2009/2-en&r=env |
| By: | Rodica Loisel (CIRED - Centre international de recherche sur l'environnement et le développement - CIRAD : UMR56 - CNRS : UMR8568 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole Nationale des Ponts et Chaussées - Ecole Nationale du Génie Rural des Eaux et Forêts) |
| Abstract: | This study simulates a CO2 permit market in Romania using a dynamic general equilibrium model. The carbon constraint is set at 20.7% below the reference emissions level for sectors eligible according to the EU-ETS (European Union Emission Trading Scheme). Free permit distribution enhances growth despite a severe emissions cap, because environmental regulation stimulates structural changes (Porter, 1991). That is, grandfathering allows sectors additional resources to invest in developing technologies, but it also raises the CO2 abatement costs because of energy rebound effects from enhanced growth. Results under endogenous growth (Romer, 1990) are very similar to those obtained under an exogenous growth scenario (Ramsey, 1928), as the substitution effects are responsible for the majority of variations; in addition, Romanian research activities are too modest to significantly impact this system. The abatement cost per unit of GDP is higher under endogenous growth, as spillover effects reduce incentives to invest. Technological diffusion continues to have a positive impact on economic growth, which counterbalances the free-riding attitude adopted by some energy-intensive sectors, such as glass and cement. |
| Keywords: | tradable permits, Romania, endogenous/exogenous growth, spillover effects. |
| Date: | 2009–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00441491_v1&r=env |
| By: | Ignacio J. Pérez-Arriaga |
| Abstract: | Answering to the formidable challenge of climate change calls for a quick transition to a future economy with a drastic reduction in GHG emissions. And this in turn requires the development and massive deployment of new low-carbon energy technologies as soon as possible. Although many of these technologies have been identified, the critical issue is how to make them happen at the global level, possibly by integrating this effort into a global climate regime. This paper discusses the preferred approaches to foster low-carbon energy technologies from a regulatory point of view. Specific promotion policies for energy efficiency and conservation, renewable energy, carbon capture and sequestration, and nuclear power are examined, but the focus is on the regulatory instruments that will be needed for the deployment of enhancements to electricity grids and the associated control systems so that they are able to integrate intelligent demand response, distributed generation and storage in an efficient, reliable & environmentally responsible manner. The paper also comments on the interactions between technology and climate change policies and provides recommendations for policy makers. |
| Date: | 2009–07 |
| URL: | http://d.repec.org/n?u=RePEc:mee:wpaper:0909&r=env |
| By: | Markandya, Anil; Chou, Wan Jung |
| Abstract: | This paper reviews the environmental record of the transition countries of Eastern Europe and Central Asia since the fall of the Berlin Wall, with a focus on areas of key concern to public policy at the present time. With the impacts of environment on public health being given the highest priority, we examined several associated health indicators at the national level, as well as looking at important environmental issues at the local level. In this respect, we focus on environmental problems related to air and water quality, land contamination, and solid waste management. Despite showing a highly differentiated performance across the region, the results suggest that inadequate environmental management seen in several of the transition countries in the past 20 years has put people’s health and livelihood under huge threats. Moreover, this paper looks at the development of policy responses and resources, i.e. environmental expenditures, in these countries, during the process of transiting from centrally planned economies to market-based one. Similarly, we identify various degrees of progress across the region. The findings reinforce the need for better coherence between national environmental expenditure and international environmental assistance, as well as the actual enforcement of national regulations and international agreements in those non-EU transition countries. |
| Keywords: | transition countries; environmental issues; public health; land contamination; air pollution; water pollution; policy; environmental expenditure |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:eid:wpaper:21/09&r=env |
| By: | Ana Espinola-Arredondo; Felix Munoz-Garcia (School of Economic Sciences, Washington State University) |
| Abstract: | This paper examines the two externalities that a country?s environmental regulation imposes on other country's welfare: an environmental externality, due to transboundary pollution, and a competitive advantage externality, as regulations a¤ect domestic ?rms?abatement costs, which impact the pro?ts of their foreign competitors. We ?rst analyze the emission standards that countries independently set under di¤erent market structures and then compare them with the standards set under international environmental agreements that internalize one or both types of externalities. The paper hence disentangles the e¤ect of each externality. We show that ?rms?pro?ts increase when countries participate in international treaties if the environmental damage from pollution is relatively low and such pollution is not signi?cantly transboundary. We hence demonstrate that international environmental agreements can serve as cooperative devices ?rms use to ameliorate overproduction and increase pro?ts, without the need to form collusive agreements. |
| Keywords: | Transboundary pollution, strategic environmental policy, international envi- ronmental agreement, market structure |
| JEL: | C72 F12 H23 Q28 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:wsu:wpaper:munoz-5.rdf&r=env |
| By: | Annegrete Bruvoll (Statistics Norway) |
| Abstract: | The purpose of environmental taxes is to correct the market when it fails to take environmental damages into account, i.e. to internalize the Pigouvian element. In addition, fiscal taxes are levied on both polluting and clean goods, which may follow the Ramsey principle. In practical policy, environmental and fiscal taxes are conceptually intertwined. This mixture complicates the calculation of the extent and the evaluation of the effects of environmental taxes. Eurostat, OECD and IEA include all taxes related to energy, transport and pollution, and most resource taxes in their international measurement of environmentally related taxes. Consequently, numerous fiscal taxes are added together with the environmental taxes. This article discusses the distinctions between the Pigouvian and the fiscal taxes in light of tax theory. The revenues following the Eurostat et al. statistical basis deviate significantly from the revenues from the environmental taxes defined on the basis of theory. Steps should be taken to harmonize the international statistics of environmental taxes with economic tax theory. |
| Keywords: | Environmental taxes; Fiscal taxes; Pigou taxes; Ramsey taxes |
| JEL: | H23 Q58 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:599&r=env |
| By: | Nguyen Mau Dung (Department of Economics Hanoi University of Agriculture) |
| Abstract: | The paper-making industry in Vietnam is the cause of significant environmental pollution that is affecting the country's wildlife and the health and livelihoods of its people. This study has investigated this problem in one of the country's where paper-making is an important industry. It finds that there is a lack of awareness about the environmental. |
| Keywords: | Paper, pollution, Vietnam |
| Date: | 2009–06 |
| URL: | http://d.repec.org/n?u=RePEc:eep:pbrief:pb2009061&r=env |
| By: | Nhan Thanh Nguyen (CIRED - Centre international de recherche sur l'environnement et le développement - CIRAD : UMR56 - CNRS : UMR8568 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole Nationale des Ponts et Chaussées - Ecole Nationale du Génie Rural des Eaux et Forêts); 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 (EHESS) - Ecole Nationale des Ponts et Chaussées - Ecole Nationale du Génie Rural des Eaux et Forêts) |
| Abstract: | This manuscript examines CO2 emissions from Vietnam's power sector using an expanded Integrated Resource Planning model. The potential effects of the following alternative policy options are examined: energy efficiency, favorably imported generation fuels, nuclear energy, renewable energy, and an internalized positive carbon value. The baseline in terms of cumulative CO2 emissions over 2010-2030 is 3.6 Gt. Lighting energy efficiency improvements offers 14% of no-regret abatement of CO2 emissions. Developing nuclear and renewable energy could help meet the challenges of the increases in electricity demand, the dependence on imported fuels for electricity generation in the context of carbon constraints applied in a developing country. When CO2 costs increase from 1 $/t to 30 $/t, building 10 GW of nuclear generation capacity implies an increase in abatement levels from 24% to 46%. Using renewable energy abates CO2 levels by between 14% and 46%. At 2 $/tCO2, the model predicts an abatement of 0.77 Gt from using wind power at prime locations as well as energy from small hydro, wood residue and wood plantations, suggesting Clean Development Mechanism opportunities. At 10 $/tCO2, the model predicts an abatement of 1.4 Gt when efficient gas plants are substituted for coal generation and when the potential for wind energy is economically developed further than in the former model. |
| Keywords: | integrated resource planning, carbon value, abatement of CO2 emissions, Vietnam, electricity generation |
| Date: | 2009–11–25 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00441085_v1&r=env |
| By: | Bushnell, James; Chong, Howard G; Mansur, Erin T |
| Abstract: | Tradable permit regulations have recently been implemented for climate change policy in many countries. One of the first mandatory markets was the EU Emission Trading System, whose first phase ran from 2005-07. Unlike taxes, permits expose firms to volatility in regulatory costs, but are typically accompanied by property rights in the form of grandfathered permits. In this paper, we examine the effect of this type of environmental regulation on profits. In particular, changes in permit prices affect: (1) the direct and indirect input costs, (2) output revenue, and (3) the carbon permit asset value. Depending on abatement costs, output price sensitivity, and permit allocation, these effects may vary considerably across industries and firms. We run an event study of the carbon price crash on April 25, 2006 by examining the daily stock returns for 90 stocks from carbon intensive industries and approximately 600 stocks in the broad EUROSTOXX index. In general, firms in industries that tended to be either carbon intensive, or electricity intensive, but not involved in international trade, were hurt by the decline in permit prices. In industries that were known to be net short of permits, the cleanest firms saw the largest declines in share value. In industries known to be long in permits, firms granted the largest allocations were most harmed. |
| Keywords: | Climate Change, Cap-and-Trade, Event Study |
| Date: | 2009–12–10 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genres:13139&r=env |
| By: | Jaume Rosselló Nadal (Centre de Recerca Econòmica (UIB · Sa Nostra)); Mohcine Bakhat (Balearic Islands University) |
| Abstract: | Tourism has started to be acknowledged as a significant contributor to the increase in environmental externalities, especially to climate change. Various studies have started to estimate and compute the role of different tourism sectors’ contributions to greenhouse gas (GHG) emissions. These estimations have been made from a sectoral perspective, assessing the contribution of air transport, the accommodation sector, or other tourism-related economic sectors. In this paper, the contribution of tourism to electricity consumption is investigated using the case study of the Balearic Islands (Spain). Using a conventional daily electricity demand model, including data for daily stocks of tourists, the impact of different tourist policy measures on electricity loads is also investigated. The results show that, in terms of electricity consumption, tourism cannot be considered a very energy-intensive sector. |
| Keywords: | Electricity demand, tourism contribution, sustainable tourism, daily data |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:pdm:wpaper:2009/6&r=env |
| By: | Chiara Martini |
| Abstract: | The distributive incidence of environmental policies has not been widely investigated whereas more attention has been focused on the efficiency of environmental reforms. According to the Kyoto Protocol, domestic policies aimed at reducing carbon emissions can include carbon/energy taxes, emission trading, command-and-control regulations and other policies. Until now, only a few European countries have implemented energy or carbon taxes: Nordic countries have been the firstcomers, suggesting a tight link between institutional environment and the potential for policy adoption. In my analysis I assume that carbon taxation is fully shifted forward to consumers. The estimation of a complete demand system can clarify the impact of ecological tax reforms, help government to select appropriate fiscal policy and give producers the ability to forecast market demand. The demand systems underlying the simulation are represented by extensions of the Almost Ideal Demand System of Deaton and Muellbauer (1980b) and the Quadratic Almost Ideal Demand System (Banks et al., 1997). The different taxation scenarios I simulate is modelled by referring to the Financial Law for 1999 and the DPCM 15/1/1999; The output of the demand system estimation will allow to calculate the compensating and equivalent variations and to estimate the revenue raised by carbon taxation introduction. |
| Keywords: | carbon tax, regressivity, demand system, welfare measures |
| JEL: | D12 H23 H31 Q48 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:rtr:wpaper:0103&r=env |
| By: | Caio Koch-Weser |
| Abstract: | Climate change is one of the most important issues of the next decades and has the potential to severely impact societies, economies and human wellbeing. |
| Keywords: | Copenhagen, climate change, societies, economies, human, wellbeing, customers, shareholders, employees, industrial, economic growth, Denmark, developing world, sustainable agriculture, forestry, solar power, energy efficiency, global warming, Public-private, Germany, carbon growth |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2343&r=env |
| By: | Nguyen Mau Dung (Department of Economics Hanoi University of Agriculture) |
| Abstract: | This study from Vietnam shows that the paper-making industry in Vietnam is the cause of significant environmental pollution that affects the country's wildlife and the health and livelihoods of its people. It finds that there is a general lack of awareness about the environmental impact of the paper-making industry. It also finds that there are many paper-making plants that do not comply with the country's environmental regulations and do not have the necessary pollution clean-up technology. The study assesses the paper-making plants in Phong Khe Commune of Bac Ninh Province, which is one of the centres of paper production in Vietnam. It recommends a number of key steps that must be taken to improve the environmental performance of the paper-making plants in the area. These include securing the necessary resources to set up pollution treatment systems that can be shared by groups of plants and strengthening the monitoring and enforcement of environmental legislation. It also recommends that more be done to raise awareness of environmental protection among the general population and the plant owners in the province. |
| Keywords: | Paper making, Vietnam |
| Date: | 2009–06 |
| URL: | http://d.repec.org/n?u=RePEc:eep:report:rr2009061&r=env |
| By: | Marita Laukkanen; NAUGES Céline |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:ler:wpaper:09.28.304&r=env |
| By: | Sibel Sirakaya; Stephen Turnovsky; Nedim Alemdar |
| URL: | http://d.repec.org/n?u=RePEc:udb:wpaper:uwec-2007-01-p&r=env |
| By: | Robert S. Pindyck |
| Abstract: | Focusing on tail effects, I incorporate distributions for temperature change and its economic impact in an analysis of climate change policy. I estimate the fraction of consumption w_(_ ) that society would be willing to sacrifice to ensure that any increase in temperature at a future point is limited to _ . Using information on the distributions for temperature change and economic impact from studies assembled by the IPCC and from “integrated assessment models” (IAMs), I fit displaced gamma distributions for these variables. Unlike existing IAMs, I model economic impact as a relationship between temperature change and the growth rate of GDP as opposed to its level, so that warming has a permanent impact on future GDP. The fitted distributions for temperature change and economic impact generally yield values of w_(_ ) below 2%, even for small values of _ , unless one assumes extreme parameter values and/or substantial shifts in the temperature distribution. These results are consistent with moderate abatement policies. |
| Date: | 2009–08 |
| URL: | http://d.repec.org/n?u=RePEc:mee:wpaper:0907&r=env |
| By: | Reyes, Celia M; Domingo, Sonny N.; Gonzales, Kathrina G.; Mina, Christian D. |
| Abstract: | <p>In the face of seasonal climate variability, the smallholder farmers, particularly those in rural communities, are among the most adversely affected. As a way to address this, together with concern on low productivity, the Philippine government has been implementing a range of risk management programs for farmers and other agricultural stakeholders. Based on key informant surveys and focus group discussions with rice and corn farmers conducted in key producing areas, however, farmers reported that they still have limited options in terms of changing their production decisions in response to seasonal climate forecasts (SCFs). Among the risk mitigation tools available, the following emerged as most preferred by farmers: localized climate information, accessible credit, crop insurance, and special assistance programs such as irrigation and seeds provision.</p> <p>This paper tackles these programs in detail and then discusses the challenges besetting these programs. The paper also presents some policy options which could enhance the delivery of these agricultural services in pursuit of improved productivity and welfare in target farming communities in the country.</p> |
| Keywords: | irrigation, seasonal climate forecast (SCF), risk management programs, localized climate information, agricultural credit, crop insurance, seeds subsidy |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2009-11&r=env |
| By: | Mallard, Graham |
| Abstract: | A political economy model is presented that proposes an effective explanation as to why national allocation plans in the emissions trading scheme of the European Union have taken the form they have. The influence of the national bureaucracy, which is omitted in the majority of the related political economy literature, is shown to be potentially significant and costly – particularly through its interaction with the influence of the affected industrialists. The analysis suggests that the role of the national bureaucracy in the design of environmental policy should be carefully considered and structured, and suggests an avenue of potentially important and fruitful future research. |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:eid:wpaper:22/09&r=env |
| By: | Rogge, Karoline; Hoffmann, Volker |
| Abstract: | This paper provides an overview of early changes in the sectoral innovation system for power generation technologies which have been triggered by the European Emission Trading Scheme (EU ETS). Based on a broad definition of the sector, our research analyses the impact of the EU ETS on the four building blocks knowledge and technologies, actors and networks, institutions and demand by combining two streams of literature, namely systems of innovation and environmental economics. Our analysis is based on 42 exploratory inter-views with German and European experts in the field of the EU ETS, the power sector and technological innovation. We find that the EU ETS mainly affects the rate and direction of the technological change of power generation technologies within the large-scale, coal-based power generation technological regime to which carbon capture technologies are added as a new technological trajectory. While this impact can be interpreted as defensive behaviour of incumbents, the observed changes should not be underestimated. We argue that the EU ETS' impact on corporate CO2 culture and routines may prepare the ground for the transition to a low carbon sectoral innovation system for power generation tech-nologies. -- |
| Keywords: | EU emission trading scheme (EU ETS),innovation system,power sector |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisisi:s22009&r=env |
| By: | Masako Ikefuji; Jun-ichi Itaya; Makoto Okamura |
| Abstract: | This paper explores optimal environmental tax policy under which duopoly firms strategically choose the location of their plants in a simple three-stage game. We examine how the relationship between the optimal emission tax and the choice of location of duopoly firms affects the welfare of the home country. We characterize the relationship between the optimal emission tax and the fixed cost, depending on the degree of environmental damage from production. Finally, we show the existence of asymmetric equilibrium in which either firm chooses relocation of its plant even if the duopoly firms are identical ex ante. |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:dpr:wpaper:0762&r=env |
| By: | Sergey Paltsev; John M. Reilly; Henry D. Jacoby; Jennifer F. Morris |
| Abstract: | We consider the cost of meeting emissions reduction targets consistent with a G8 proposal of a 50 percent global reduction in emissions by 2050, and an Obama Administration proposal of an 80 percent reduction over this period. We apply the MIT Emissions Prediction and Policy Analysis (EPPA), modeling these two policy scenarios if met by applying a national cap-and-trade system, and compare results with an earlier EPPA analysis of reductions of this stringency. We also test results to alternative assumptions about program coverage, banking behavior, and cost of technology in the electric power sector. Two main messages emerge from the exercise. First, technology uncertainties have a huge effect on the generation mix but only a moderate effect on the emissions price and welfare cost of achieving the assumed targets. Measured in terms of changes in economic welfare, the economic cost of 80 percent reduction by 2050 is in the range of 2 to 3% by 2050, with CO2 prices between $48 and $67 in 2015 rising to between $190 and $266 by 2050. Second, implementation matters. When an idealized economy-wide cap-and-trade is replaced by coverage omitting some sectors, or if the credibility of long-term target is weak (limiting banking behavior) prices and welfare costs change substantially. |
| Date: | 2009–04 |
| URL: | http://d.repec.org/n?u=RePEc:mee:wpaper:0905&r=env |
| By: | John Freebairn |
| Abstract: | Arguments for, and then the form and level of, compensation of households and businesses for the additional costs of an emissions trading scheme to lower greenhouse gas (GHG) emissions are evaluated. With most of the costs passed forward to households as higher consumer prices, a sequential set of direct income transfers to all households is proposed to meet equity and macroeconomic stability objectives. In the event that Australia proceeds with a scheme before some of the other global polluters, to avoid carbon leakage and unnecessary industrial restructuring a consumption base system of taxing the GHG component of imports and compensating the GHG component of exports is proposed. |
| Keywords: | Macroeconomics: Consumption; Saving; Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance |
| JEL: | E21 G34 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:mlb:wpaper:1071&r=env |
| By: | Bushnell, James; Chen, Yihsu |
| Abstract: | The allocation of emissions allowances is among the most contentious elements of the design of cap-and-trade systems. In this paper we develop a detailed representation of the US western electricity market to assess the potential impacts of various allocation proposals. Several proposals involve the "updating'' of permit allocation, where the allocation is tied to the ongoing output, or input use, of plants. These allocation proposals are designed with the goals of limiting the pass-through of carbon costs to product prices, mitigating leakage, and of mitigating costs to high-emissions firms. However, some forms of updating can also inflate permit prices, thereby limiting the benefits of such schemes to high emissions firms. Rather than mitigating the impact on high carbon producers, the net operating profit of such firms can actually be lower under input-based updating than under auctioning. This is due to the fact that product prices (and therefore revenues) are lower under input-based updating, but overall compliance costs are relatively comparable between auctioning and input-based updating. In this way, the anticipated benefits from allocation updating are reduced and further distortions are introduced into the trading system. |
| Date: | 2009–11–21 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genres:13131&r=env |
| By: | Mabel Tidball |
| Abstract: | We consider a dynamic model of non-renewable resource extraction under the assumption that players do not know their opponents' utility functions.[...] |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:lam:wpaper:09-28&r=env |
| By: | Eggert, Håkan (Department of Economics, School of Business, Economics and Law, Göteborg University); Greaker, Mads (Department of Economics, School of Business, Economics and Law, Göteborg University) |
| Abstract: | The transport sector is a major contributor to green house gas (GHG) emissions and its share is increasing. Biofuels may provide an option to replace fossil fuels and generate an increasing worldwide interest. Rich countries like the US and the European Union ha idies for domestic producers, while applying tariffs for some of the foreign producers. Mid income and poor countries do not have binding restrictions on carbon emissions in the Kyoto treaty, but may have great potential for producing biofuels both for domestic and foreign use. In this paper we study trade policies for biofuels. We find that only by combining an import standard with border tax adjustment the government can ensure cost efficient production of biofuels from a global point of view. We also consider a blending mandate. This fundamentally alters the way the market works. For instance, if domestic biofuels production is subsidized, the optimal BTA may be negative.<p> |
| Keywords: | Biofuels; Border tax adjustment; Carbon Leakage; Trade policy |
| JEL: | F10 H20 Q50 |
| Date: | 2009–12–09 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0422&r=env |
| By: | Taylor, Timothy; Longo, A. |
| Abstract: | Algal bloom arises in part from anthropogenic emissions of nutrients into the coastal zone. Increased interest in water quality in coastal and marine areas stemming from the Water Framework Directive and the Marine Strategy Framework Directive leads to important questions in terms of policies to address nutrient loadings. This paper presents the results from a choice experiment for the valuation of algal blooms in Varna Bay, Bulgaria. Varna Bay is an important tourist destination and a large port city on the Black Sea coast of Bulgaria. Algal bloom events have been experienced frequently in this area. A choice experiment questionnaire was developed to be applied in Varna Bay. The key attributes used were visibility, duration of bloom and the amount of congestion on the beach. The amount of bloom is found to be important - respondents are willing to pay for a program that entails 1 week of algal bloom about 33 Leva (s.e. 8.09) when there is high visibility; 21 Leva (s.e. 5.75) with medium visibility and 9 Leva (s.e. 3.48) with low visibility. Respondents are willing to pay more for programs that offer shorter duration of algal bloom. The marginal price for one metre of extra space between the respondent and the nearest person is equal to 0.38 Leva. |
| Keywords: | marine ecosystem; threshold effects; |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:eid:wpaper:7/09&r=env |
| By: | Narita, Daiju; Tol, Richard S. J.; Anthoff, David |
| Abstract: | We impute a global social welfare function that is consistent with the burden sharing in the Kyoto Protocol and in two proposals for a post-Kyoto treaty. The Kyoto Protocol favored the EU. The Frankel proposal for a post-Kyoto treaty continues the favorable treatment of the EU, while the EU proposal puts more weight on the wellbeing of other OECD countries at the expense of its own residents. Ignoring income differences, the EU proposal for a post-Kyoto treaty favors developing countries. However, if income differences are taken into account, the EU proposal is not at all generous to developing countries. |
| Keywords: | burden sharing/Climate policy/income equality |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp332&r=env |
| By: | Denny Ellerman |
| Abstract: | No Abstract Available |
| Date: | 2009–11 |
| URL: | http://d.repec.org/n?u=RePEc:mee:wpaper:0916&r=env |
| By: | Athena Ballesteros |
| Abstract: | This brief seeks to address questions on how the funds are collected, dsitributes at the international level, mechanisms to ensure that the recipient countries are managing the funds in a transparent manner based on an examination of existing and proposed climate change finance mechanisms and the findings of the International Budget Partnership’s Open Budget Survey 2008. |
| Keywords: | funds, climate change, finance, international budget, Transparency, Accountability, Copenhagen, developing countries, financial flows, institutions, civil society |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2339&r=env |
| By: | Nghia Dai Tran (Department of Natural Resources and Environmental Management, University of Hawaii) |
| Abstract: | This study from Vietnam shows that a switch from conventional to organic tea productions would bring real environmental, health and economic benefits for the country's farmers and its society as a whole. In particular, the amount of agrochemical residue and waste produced by tea production would be reduced. Farmers would also be able to enjoy a better livelihood as they could command a premium price for their organic tea products. The study therefore recommends that organic tea production is the best method for farmers to adopt. The study finds that there are a number of technical and economic challenges that confront farmers making the switch to organic production. It therefore highlights the fact that clean tea production (which has a less strict environmental management regime) can offer an interim approach that still brings higher quality standards and profitability for tea growers. There are a number of ways in which the government can promote clean tea and organic tea production. Support from governmental agencies and NGOs in the form of technical training and on-farm monitoring is vital. The government can also create a market mechanism to guarantee a premium price for organic tea products. |
| Keywords: | Organic tea, Vietnam |
| Date: | 2009–06 |
| URL: | http://d.repec.org/n?u=RePEc:eep:report:rr2009062&r=env |
| By: | Nghia Dai Tran (Department of Natural Resources and Environmental Management, University of Hawaii) |
| Abstract: | This study from Vietnam shows that a switch from conventional to organic tea productions would bring real environmental, health and economic benefits for the country's farmers and its society as a whole. In particular the amount of agrochemical residue and waste produced by tea production would be reduced. Farmers would also be able to enjoy a better livelihood as they could command a premium price for their organic tea products. The study therefore recommends that organic tea production is the best method for farmers to adopt. |
| Keywords: | Organic tea, Vietnam |
| Date: | 2009–06 |
| URL: | http://d.repec.org/n?u=RePEc:eep:pbrief:pb2009062&r=env |
| By: | Reyes, Celia M; de Guzman, Rosalina G.; Mina, Christian D.; Crean, Jason; Parton, Kevin |
| Abstract: | <p>In the Philippines, importation has remained as one of the most feasible options for the government to meet the growing demand for rice. It is thus imperative for the government to develop a strategy that would ensure adequate supply and minimum importation costs. One of the critical factors in import decisionmaking is rice production. The Inter-Agency Committee on Rice and Corn (IACRC), where the National Food Authority (NFA) and Bureau of Agricultural Statistics (BAS) are members, decides on importation when there is an impending production shortfall in the coming season. However, because Philippine agriculture is vulnerable to extreme climate events and climate change is believed to further intensify the effects of seasonal climate variability, rice production forecast is becoming more uncertain. Inaccurate production forecasts could lead to incorrect volume and ill-timing of rice imports, which in turn could result in either a waste of resources for the government or a burden to consumers. Contraction of rice imports in the early 1990s, ill-timing of imports in 1995, and overimportation in 1998 illustrate how inaccurate forecasts of volume and timing of rice importation, especially during El Niño and La Niña years, could result in substantial economic costs such as higher rice prices due to rice shortages, higher storage costs, among others.</p> <p>This paper evaluates the significance of SCF information, among other things, in rice policy decisions of the government, particularly on importation. It presents an alternative method of forecasting the level of rice production through regional rice production models. The rice production models systematically incorporate SCF and could be used in support of the current practice of forecasting rice production based on planting intentions. The paper also demonstrates how SCF, together with these production estimates, could be incorporated in the rice import decisions of the government through the Rice Importation Simulation (RIS) model, which was developed using a Discrete Stochastic Programming (DSP) modelling approach. The RIS model, which recommends a set of optimal rice import strategies, could serve as guide for the government in its rice import decisions in the face of seasonal climate variability and could be used in estimating the potential value of SCF.</p> |
| Keywords: | Bureau of Agricultural Statistics (BAS), El Niño, La Niña, rice, seasonal climate forecast (SCF), National Food Authority (NFA), importation, production models, Discrete Stochastic Programming (DSP), Inter-Agency Committee on Rice and Corn (IACRC) |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2009-28&r=env |
| By: | Juan-Pablo Montero |
| Abstract: | As with other commodity markets, markets for trading pollution permits have not been immune to market power concerns. In this paper, I survey the existing literature on market power in permit trading but also contribute with some new results and ideas. I start the survey with Hahn’s (1984) dominant-firm (static) model that I then extend to the case in which there are two or more strategic firms that may also strategically interact in the output market, to the case in which current permits can be stored for future use (as in most existing and proposed market designs), to the possibility of collusive behavior, and to the case in which permits are auctioned off instead of allocated for free to firms. I finish the paper with a review of empirical evidence on market power, if any, with particular attention to the U.S. sulfur market and the Southern California NOx market. |
| Date: | 2009–07 |
| URL: | http://d.repec.org/n?u=RePEc:mee:wpaper:0906&r=env |
| By: | Reyes, Celia M; Domingo, Sonny N. |
| Abstract: | Crop insurance is a risk management tool designed to even out agricultural risks and address the consequences of natural disasters to make losses more bearable, especially to the marginalized farmers. In the Philippines, the Philippine Crop Insurance Corporation (PCIC) implements and manages the government program on agricultural insurance. This paper provides a comprehensive review of the crop insurance program in the Philippines--its history, operationalization, performance, and a number of challenges. Some of the identified constraints in operating the program are high overhead cost, need for larger investment fund, and question of sustainability. The results of secondary data assessment and key informant interviews revealed that PCIC has captured only a small segment of its target clientele, particularly the subsistence farmers, due to logistical and marketing constraints. Moreover, farmer dependence on informal credit, particularly in rural farming communities, seems to have also created a nonviable setting for a crop insurance program. |
| Keywords: | seasonal climate forecast (SCF), agricultural credit, crop insurance, Philippine Crop Insurance Corporation (PCIC) |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2009-12&r=env |
| By: | Jin Jiangjun; Rodelio Subade; Orapan Nabangchang (Sukhothai Thammatirat Open University); Truong Dang Thuy; Anabeth L. Indab (Resources, Environment and Economics Center for Studies (REECS)) |
| Abstract: | Marine turtles are important, not only for their economic and intrinsic value, but because an adequate population of marine turtles is often an indicator of healthy marine ecosystem. Of the seven species of marine turtles, four are critically endangered, while two are in the next-highest risk category. |
| Keywords: | Willingness to pay |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:eep:pbrief:pb2009052&r=env |
| By: | Mourad Ali; Patrick Rio |
| Abstract: | In this article we treat the problemof nonpoint source pollution as a problem of moral hazard in group. To solve this kind of problem we consider a group performance based tax coupled to tradable permits market. The tax is activated if the group fails to meet the ambient standard. So the role of the tax is to provide an incentive to ensure that the agents provide the abatement level necessary to achieve the standard. The role of the tradable permits market is to distribute effectively this abatement level through the price of the permits which rises with the exchange of the permits. |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:lam:wpaper:09-21&r=env |
| By: | Mourad Ali; Patrick Rio |
| Abstract: | In the context of nonpoint source pollution the regulator can not attribute individually the responsibility of pollution because of informational asymmetry which makes the costs of monitoring of individual emission very high. This grounds a moral hazard problem. We analyse group performance based instruments to regulate this kind of informational problem. In particular, we assess randomand collective fining schemes with respect to their deterrence and efficiency. We show that a collective fine scheme is more deterrent than a random fine scheme. However, the analysis of efficiency is less categorical between these two schemes. The efficiency depends on the number of non-compliant agents. If the number of non-compliant agents is high it is better to implement a collective fine scheme. If the number of non-compliant agents is small it is better to implement a random fine scheme. |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:lam:wpaper:09-22&r=env |
| By: | Jorn Altmann; Juthasit Rohitratana (Technology Management, Economics and Policy Program(TEMEP), Seoul National University) |
| Abstract: | Despite the fact that Software-as-a-Service (SaaS) adoption increases, the question whether SaaS is the right choice for an organization is still open. The main objective of this study is to propose the Software Licensing Selection Support (SL2S) model for selecting a SaaS Licensing (SaaSL) model or a Perpetual Software Licensing (PSL) model. The SL2S model considers different types of criteria under Green IT policies and sustainable IT resource conditions proposed in the literature. Based on the criteria that influence the selection of the software licensing type, we perform a sensitivity analysis, to understand the dependencies between explicit cost, implicit cost, and energy consumption. To validate the model, we constructed a scenario, in which a medium-sized company has to decide on a software licensing model. The scenario and its parameters were populated with data about CRM solutions of Salesforce.com and Microsoft, the SME definition of the European Commission, and several case studies. The results show that implicit cost criteria (25% of SaaSLM) are major decision factors. It suggests that a sustainable IT policy cannot only consider lowering cost (as a mean for lowering energy consumption) but also has to re-evaluate its relation to implicit cost criteria. |
| Keywords: | Software-as-a-Service (SaaS), Software Selection, Decision Support System, Sensitivity Analysis, Perpetual Software License Model, Green IT, Energy Consumption, Decision Factor Analysis, Cost Modeling, IT Resource Management competitiongrade, willingness to pay, relative importance |
| JEL: | C13 C44 L86 M21 |
| Date: | 2009–11 |
| URL: | http://d.repec.org/n?u=RePEc:snv:dp2009:200936&r=env |
| By: | Orapan Nabangchang (Sukhothai Thammatirat Open University) |
| Abstract: | This paper looks at why people in Bangkok give money to wildlife charities, estimates how much people would be willing to pay for the conservation of some of Thailand's endangered animals and assesses what would be the best way to collect money for wildlife protection. The study used the Contingent Valuation Method (CVM) to determine the economic value of a group of Thailand's endangered animal species. Information was gathered through 955 face-to-face interviews conducted in Bangkok. The study finds that the majority of the respondents would vote to pass a referendum to impose a 250 Baht income tax surcharge to generate funds for conservation of a selected group of Thailand's endangered species. If this surcharge were imposed on the whole of Bangkok's population, it would raise significantly more money than is allocated to the current budget of Thailand's National Park, Wildlife and Plant Conservation Department. This potential income would allow the implementation of a comprehensive, integrated conservation programme across the country. The study therefore recommends that all policy-makers and organizations involved in wildlife conservation in Thailand seriously consider its findings and incorporate them in future plans to raise funds to save the country's endangered wildlife. |
| Keywords: | Endangered species, Thailand |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:eep:report:rr2009051&r=env |
| By: | Melberg, Hans Olav (Institute of Health Management and Health Economics); Lund, Karl E. (Norwegian Institute for Alcohol and Drug Research) |
| Abstract: | After 16 years of exemptions from the ban on indoor smoking in other places of work, Norway became the second country after Ireland to implement a smoke-free regime in pubs and restaurants. This paper evaluates the economic impact on the hospitality sector in a northern region with a cold climate. The data consists of bi-monthly observations of revenues in restaurants and pubs starting in January 1999 and ending in August 2007. Auto-regressive integrated moving average (ARIMA) intervention analysis was used to test for possible economic impacts, controlling for variations in temperature. <p> The ban on smoking did not have a statistically significant effect on revenue in restaurants or on restaurant revenue as a share of personal consumption. There is also no evidence that the ban reduce revenues in bars, but there is some indication that it may have reduced bar revenue as a share of personal consumption. Conclusion: A large body of research has found no negative economic effect of smoke-free legislation on restaurant and bar sales in the United States, Australia and elsewhere Our study confirms these results in a northern region with a cold climate with respect to restaurants, but the results was more mixed for bars. <p> |
| Keywords: | Tobacco; economics; business; passive smoking; legislation |
| JEL: | D12 I18 |
| Date: | 2009–12–14 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:oslohe:2009_009&r=env |
| By: | Eduardo Cavallo; Ilan Noy |
| Abstract: | Catastrophes caused by natural disasters are by no means new, yet the evolving understanding of their relevance to economic development and growth is still in its infancy. In order to facilitate further necessary research on this topic, this paper summarizes the state of the economic literature examining the aggregate impact of disasters. The paper reviews the main disaster data sources available, discusses the determinants of the direct effects of disasters, and distinguishes between short- and long-run indirect effects. The paper then examines some of the relevant policy questions and follows up with projections about the likelihood of future disasters, while paying particular attention to climate change. The paper ends by identifying several significant gaps in the literature. |
| Keywords: | Natural disasters, Climate change, Growth |
| JEL: | O11 O40 Q54 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:idb:wpaper:4649&r=env |
| By: | Orapan Nabangchang (Sukhothai Thammatirat Open University) |
| Abstract: | If politicians are to make informed decisions about funding wildlife conservation, it is important that they know what the general public thinks about the issues involved, the factors that shape people's perceptions and how much individuals would be willing to pay to help wildlife. This study has looked into these issues and has found out what people in Bangkok think about wildlife conservation in the country and how much they would be willing to pay to support it. |
| Keywords: | Wildlive conservation, Thailand |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:eep:pbrief:pb2009051&r=env |
| By: | Richard Schmalensee |
| Abstract: | This paper provides an overview of the use of renewable energy sources to generate electricity in the United States and a critical analysis of the federal and state policies that have supported the deployment of renewable generation. Particular attention is paid to the use of wind energy and to the contrasting experiences in Texas and California. |
| Date: | 2009–11 |
| URL: | http://d.repec.org/n?u=RePEc:mee:wpaper:0917&r=env |