nep-env New Economics Papers
on Environmental Economics
Issue of 2010‒06‒18
35 papers chosen by
Francisco S.Ramos
Federal University of Pernambuco

  1. Assessing the Impacts of Environmental Regulations on the Food Processing Industry in Vietnam By Le Ha Thanh
  2. Valuing Environmental Services Using Contingent Valuation Method By Duangmany Luangmany; Souphandone Voravong; Kaisorn Thanthathep; Daovinh Souphonphacdy; Malabou Baylatry
  3. Paying for Mitigation: A Multiple Country Study By Carlsson, Fredrik; Kataria, Mitesh; Krupnick, Alan; Lampi, Elina; Lofgren, Asa; Qin, Ping; Chung, Susie; Sterner, Thomas
  4. Cost-Effectiveness Analysis of Ground-Level Ozone Control in and Around Beijing By Xie Xuxuan; Wu Dan
  5. Conservation Value By Tisdell, Clem
  6. Making Polluter Pay Legislation Work - A Study of Vietnam's Decree 67 By Le Ha Thanh
  7. Saving Fishers and Fish - An Assessment of Fishery Management Options for the Visayan Sea in the Philippines By Alice Joan G. Ferrer
  8. The GHG Balance of Biofuels Taking into Account Land Use Change By Mareike Lange
  9. Environmental Standards under International Oligopoly By Ishikawa, Jota; Okubo, Toshihiro
  10. Environmental Standards under International Oligopoly By Jota Ishikawa; Toshihiro Okubo
  11. The Evidence Base for Environmental and Socioeconomic Impacts of “Sustainable” Certification By Blackman, Allen; Rivera, Jorge
  12. Education and the Political Economy of Environmental Protection. By Natacha Raffin
  13. The Excitement and Value of Discovering Tourism Economics: Clem Tisdell's Journey By Tisdell, Clem
  14. Welfare Impacts of Alternative Biofuel and Energy Policies By Cui, Jingbo; Lapan, Harvey; Moschini, GianCarlo; Cooper, Joseph
  15. IT Innovativeness and Environmental Consciousness on Organizational Performance By Myung Ko
  16. An Assessment of Forest Management Options for Preventing Forest Fire in Indonesia By Luthfi Fatah; Udiansyah
  17. Climate Change, Total Factor Productivity, and the Tanzanian Economy: A Computable General Equilibrium Analysis By Bezabih, Mintewab; Chambwera, Muyeye; Stage, Jesper
  18. Designing a Procurement Auction for Reducing Sedimentation: A Field Experiment in Indonesia By Beria Leimona; Brooke Kelsey Jack; Betha Lusiana; Rachman Pasha
  19. Which “Greenness” is Valued? Evidence from Green Condominiums in Tokyo By Yoshida, Jiro; Sugiura, Ayako
  20. The Hartwell Paper: a new direction for climate policy after the crash of 2009. By Prins, Gwyn; Galiana, Isabel; Green, Christopher; Grundmann, Reiner; Korhola, Atte; Laird, Frank; Nordhaus, Ted; Pielke Jnr, Roger; Rayner, Steve; Sarewitz, Daniel; Shellenberger, Michael; Stehr, Nico; Tezuko, Hiroyuki
  21. Battling Beijing's Ozone Crisis - Options for Action By Xie Xuxuan; Wu Dan
  22. Price Discovery in Emissions Permit Auctions By Burtraw, Dallas; Goeree, Jacob; Holt, Charles; Myers, Erica; Palmer, Karen; Shobe, William
  23. Household Adoption of Water-Efficient Equipment : The Role of Socio-economic Factors, Environmental Attitudes and Policy. By Katrin Millock; Céline Nauges
  24. Health and the Urban Transition Effects of Household Perceptions, Illness, and Environmental Pollution on Clean Water Investment By Spencer, James H.
  25. Willingness to Pay for the Preservation of Lo Go - Xa Mat National Park in Vietnam By Dang Le Hoa; Nguyen Thi Y Ly
  26. Evaluation of Fisheries Management Options for the Visayan Sea, Philippines: The Case of Northern Iloilo By Alice Joan G. Ferrer
  27. Land Use Planning and Land Allocation in the Upland of Northern Laos: Process Evaluation and Impacts By Khamphay Manivong; Phouthone Sophathilath
  28. An Assessment of Paper Mill Wastewater Impacts and Treatment Options in Vientiane Capital City, Lao P.D.R. By Kaisorn Thanthathep; Phousavanh Douangphila; Somphone Khamphanh
  29. A Contingent Valuation Estimation of Hill Recreational and Services Values in Malaysia By Pek, Chuen-Khee; Tee, Chee-Hoong; Ng, Phuay-Ying
  30. Evaluating the Economic Potential and Feasibility of Producing Bioenergy from Underutilized Crops in Sri Lanka By Prabodh Illukpitiya
  31. Cost-Effectiveness of Policy Options for Sustainable Wetland Conservation: A Case Study of Qixinghe Wetland, China By Wu Jian; Wang Xiaoxia; Niu Kunyu
  32. Behavioral Response to Plastic Bag Legislation in Botswana By Dikgang, Johane; Visser, Martine
  33. Adaptation Strategies to Address Coastal Erosion/Flooding: A Case Study of the Communities in Bang Khun Thian District, Bangkok, Thailand By Rawadee Jarungrattanapong; Areeya Manasboonphemphool
  34. Household Demand for Solid Waste Disposal Options in Malaysia By Pek, Chuen Khee; Othman, Jamal
  35. Securing Water for Wetland Conservation in China - An Assessment of Policy Options By Wu Jian; Wang Xiaoxia; Niu Kunyu; Li Shushan

  1. By: Le Ha Thanh (Faculty of Environmental, Natural Resources and Urban Economics & Management, Hanoi National Economics University)
    Abstract: This study assesses the effectiveness of Decree 67, a key piece of the country's 'polluter-pays' environmental legislation. Industrial waste-water pollution is one of the most significant environmental problems affecting Vietnam. Although the country has implemented a range of anti-pollution legislation, the problem has not been resolved and companies continue to pollute on a large scale. This makes it important to understand why current environmental legislation is not working and what must be done to improve the situation. The study looks at the impact of Decree 67 on food processing companies in Hanoi and Ho Chi Minh City. The study finds that, although the legislation has been successful in raising environmental awareness among businesses, it has been less successful at stopping pollution. Overall, Decree 67 has had a minimal impact and is poorly implemented and enforced. The study shows that many company owners and managers have an adequate knowledge of environmental protection. It is also clear that companies do not consider environmental protection a top priority. Overall, environmental costs are not being fully internalized by businesses. The study makes a number of suggestions for how Decree 67 can be made more effective. Recommendations include reducing the scope of the legislation to make it easier to implement and a phased increased in the charges that are levied on polluting.
    Keywords: waste pollution, Vietnam
    Date: 2010–03
    URL: http://d.repec.org/n?u=RePEc:eep:report:rr2010032&r=env
  2. By: Duangmany Luangmany (Environmental Training Center and the Environment Research Institute); Souphandone Voravong (Environmental Training Center and the Environment Research Institute); Kaisorn Thanthathep (Environmental Training Center and the Environment Research Institute); Daovinh Souphonphacdy (Environmental Training Center and the Environment Research Institute); Malabou Baylatry (Environmental Training Center and the Environment Research Institute)
    Abstract: This paper presents the results of two studies in Lao PDR that assessed people's willingness to pay (WTP) using the Contingent Valuation Methodology (CVM). The first study investigated the WTP of residents for the sustainable development and maintenance of urban parks in the city using Saysetha Park as the case study. In this study residents expressed that urban parks are very important to them as they are areas for relaxation and areas to conserve urban biodiversity. The WTP survey revealed that the residents' mean WTP is 10,741kip/month/household. With this amount, it was estimated that a monthly water bill surcharge of 3,000/kip/month/household may be recommended to maintain urban parks. The second study assessed the WTP for biodiversity conservation and sustainability in the Houay Nhang Protected Area. Using CVM, the WTP responses showed that the monthly contribution that would be acceptable to the people is 5,000 kip. The logit regression shows that this WTP value is influenced by bid prices, gender, and educational levels. The respondents recognized the importance of the protected area for environmental and biodiversity protection.
    Keywords: contingent valuation, Lao PDR
    Date: 2009–10
    URL: http://d.repec.org/n?u=RePEc:eep:tpaper:tp200910t4&r=env
  3. By: Carlsson, Fredrik; Kataria, Mitesh; Krupnick, Alan (Resources for the Future); Lampi, Elina; Lofgren, Asa; Qin, Ping; Chung, Susie; Sterner, Thomas
    Abstract: Unique survey data from a contingent valuation study conducted in three different countries (China, Sweden, and the United States) were used to investigate the ordinary citizen’s willingness to pay (WTP) for reducing CO2 emissions. We found that a large majority of the respondents in all three countries believe that the mean global temperature has increased over the last 100 years and that humans are responsible for the increase. A smaller share of Americans, however, believes these statements, when compared to the Chinese and Swedes. A larger share of Americans is also pessimistic and believes that nothing can be done to stop climate change. We also found that Sweden has the highest WTP for reductions of CO2, while China has the lowest. Thus, even though the Swedes and Chinese are similar to each other in their attitudes toward climate change, they differ considerably in their WTP. When WTP is measured as a share of household income, the willingness to pay is the same for Americans and Chinese, while again higher for the Swedes.
    Keywords: climate change, willingness to pay, multi-country, China, United States, Sweden
    JEL: Q51 Q54
    Date: 2010–05–25
    URL: http://d.repec.org/n?u=RePEc:rff:dpaper:dp-10-12-efd&r=env
  4. By: Xie Xuxuan (Beijing University, China); Wu Dan (Beijing University, China)
    Abstract: This study assesses a number of policy options that could help reduce ground level ozone pollution in Beijing. Ground level ozone pollution is one of the most significant air pollution problems in big cities in China. Because of the complex way in which ozone is formed, it is difficult for policy makers to identify optimal control options on a cost-effective basis. The study assesses a range of options to address this problem. It compares the effectiveness and economic costs of these options, and then recommends the most effective sequence in which the options should be adopted to realize pollution control at the lowest cost. The study finds that the installation of oil gas recovery systems at Beijing's 1446 gasoline stations would be the most cost-effective option. Overall, it is found that options to reduce ozone pollution by cutting vehicular emissions are much more cost-effective than options to "clean-ip" coal-fired plants. A series of options for controlling vehicular emissions have been introduced, including substituting gasoline buses with clean fuel buses and phasing out high emission vehicles (those with low emission standards) in Beijing. The study also highlights that cost-effective pollution control can be achieved by, for example, better practices when refueling vehicles. The results of this research are expected to help decision makers to bate ozone pollution in a cost-effective way.
    Keywords: pollution, China
    Date: 2010–03
    URL: http://d.repec.org/n?u=RePEc:eep:report:rr2010031&r=env
  5. By: Tisdell, Clem
    Abstract: This paper outlines the significance of the concept of conservation value and discusses ways in which it is determined paying attention to views stemming from utilitarian ethics and from deontological ethics. The importance of user costs in relation to economic decisions about the conservation and use of natural resources is emphasised. Particular attention is given to competing views about the importance of conserving natural resources in order to achieve economic sustainability. This then lends to a discussion of the value of conserving natural resources in order to meet the moral obligations of present generations to future generations. Anthropogenic views of the value of conserving natural resources (for example, derived from utilitarian ethics) are contrasted with views stressing mankindâs obligations to nature (ecocentric views). The latter are often based on deontological ethics.
    Keywords: anthropogenic values, conservation value, deontological ethics, ecocentric values, economic sustainability, intergenerational equity, natural resources, neo-Malthusianism, precautionary motive, sustainability, sustainable development, user costs, utilitarian ethics, Environmental Economics and Policy, Q01, Q20, Q30, Q50, Q51,
    Date: 2010–06
    URL: http://d.repec.org/n?u=RePEc:ags:uqseee:90879&r=env
  6. By: Le Ha Thanh (Faculty of Environmental, Natural Resources and Urban Economics & Management, Hanoi National Economics University)
    Abstract: One of the most significant environmental problems affecting Vietnam is industrial waste pollution. Although the country has implemented a reang of anti-pollution legislation, the problem has not been resolved and companies continue to pollute on a large scale. This study assessed the effectiveness of a key piece of Vietnam's anti-pollution legislation in an attempt to highlight what needs to be done to reduce industrial polution in the country.
    Keywords: waste pollution, Vietnam
    Date: 2010–03
    URL: http://d.repec.org/n?u=RePEc:eep:pbrief:pb2010032&r=env
  7. By: Alice Joan G. Ferrer (Division of Social Science, University of The Philippines Visayas)
    Abstract: The Visayan Sea is one of the most important and threatened marine areas in the Philippines. It is a source of income and food for thousands of people and an ecological recource of world importance. However, over exploitation means that fishing in the area is no longer sustainable and that fishing communities are losing their fishing communities are losing their livelihoods. For this reason, there is an urgent need to do something to stop any further decline in the sea’s environmental quality. This study, assesses a number of potential management options that could protect biodiversity in the Visayan Sea and help its fishing communities to earn a better living. The study finds that the best way forward would be to use a combination of options, including putting in place a marine protected area and implementing various fishing bans. The study also recommends that a single management body should be set up to oversee the implementation of this multipronged approach.
    Keywords: Fishery management, Philippines
    Date: 2009–12
    URL: http://d.repec.org/n?u=RePEc:eep:pbrief:pb2009121&r=env
  8. By: Mareike Lange
    Abstract: The contribution of biofuels to the saving of greenhouse gas (GHG) emissions has recently been questioned because of emissions resulting from land use change (LUC) for the bioenergy feedstock production. We investigate how an expanding biofuel feedstock production impacts on land use dynamics if LUC is included into the biofuel carbon accounting framework as scheduled by the European Commission. We first illustrate the change in carbon balances of different biofuels, using methodology and data from the IPCC Guidelines for National Greenhouse Gas Inventories. It turns out that the conversion of natural land except for grassy savannahs impedes meeting the EU’s 35% minimum emissions reduction target for biofuels. We show that the current accounting method promotes biofuel feedstock production mainly on former cropland, thus increases the competition between food and fuel production on the currently available cropland area. We further discuss whether it is profitable to use degraded land for commercial bioenergy production as requested by the European Commission to avoid undesirable LUC and conclude that the current regulation sets little incentives to use such land. The exclusive consideration of LUC for bioenergy production minimizes direct LUC at the expense of increasing indirect LUC but a convincing approach to implement indirect LUC into the framework does not exist. To overcome this problem, we propose the inclusion of all agricultural activities into a regulatory framework for carbon accounting, thus eliminating the indirect LUC risk
    Keywords: land use change emissions, bioenergy, biofuels, European policy, land use dynamics, indirect land use change (ILUC)
    JEL: Q58 Q42 Q24 Q17
    Date: 2010–04
    URL: http://d.repec.org/n?u=RePEc:kie:kieliw:1619&r=env
  9. By: Ishikawa, Jota; Okubo, Toshihiro
    Abstract: We explore the effects of domestic environmental standards when a domestic firm and a foreign rival compete in the domestic market. We focus on a situation where the introduction of environmental standards forces the foreign product out of the domestic market because it does not meet the standards. Such prohibitive standards may induce the foreign firm to produce an environmentally friendly good through R&D or licensing obtained from the domestic firm. However, this does not guarantee that the product, which now complies with the environmental standards, will improve the environment. In the case of licensing, governments may intervene to shift the rent from the domestic firm. In certain circumstances, the shifted rent could exceed the amount paid by the foreign firm for licensing.
    Keywords: environmental standards, international oligopoly, R&D, licensing, rent-shifting
    JEL: F13 F18
    Date: 2010–05
    URL: http://d.repec.org/n?u=RePEc:hit:ccesdp:32&r=env
  10. By: Jota Ishikawa; Toshihiro Okubo
    Abstract: We explore the effects of domestic environmental standards when a domestic firm and a foreign rival compete in the domestic market. We focus on a situation where the introduction of environmental standards forces the foreign product out of the domestic market because it does not meet the standards. Such prohibitive standards may induce the foreign firm to produce an environmentally friendly good through R&D or licensing obtained from the domestic firm. However, this does not guarantee that the product, which now complies with the environmental standards, will improve the environment. In the case of licensing, governments may intervene to shift the rent from the domestic firm. In certain circumstances, the shifted rent could exceed the amount paid by the foreign firm for licensing.
    Keywords: environmental standards, international oligopoly, R&D, licensing, rent-shifting
    JEL: F13 F18
    Date: 2010–06
    URL: http://d.repec.org/n?u=RePEc:hst:ghsdps:gd10-141&r=env
  11. By: Blackman, Allen (Resources for the Future); Rivera, Jorge
    Abstract: Initiatives certifying that farms and firms adhere to predefined environmental and social welfare production standards are increasingly popular. According to proponents, they create financial incentives for farms and firms to improve their environmental and socioeconomic performance. This paper reviews the evidence on whether sustainable certification of agricultural commodities and tourism operations actually has such benefits. It identifies empirical ex post farm-level studies of certification, classifies them on the basis of whether they use methods likely to generate credible results, summarizes their findings, and considers the implications for future research. We conclude that empirical evidence that sustainable certification has significant benefits is limited. We identify just 37 relevant studies, only 14 of which use methods likely to generate credible results. Of these 14 studies, only 6 find that certification has environmental or socioeconomic benefits. This evidence can be expanded by incorporating rigorous, independent evaluation into the design and implementation of projects promoting sustainable certification.
    Keywords: sustainable, certification, eco-label, literature review
    JEL: Q2 Q56
    Date: 2010–03–26
    URL: http://d.repec.org/n?u=RePEc:rff:dpaper:dp-10-10-efd&r=env
  12. By: Natacha Raffin (Paris School of Economics - Centre d'Economie de la Sorbonne)
    Abstract: We develop a political economy model that might explain the different environmental performance of countries, through educational choices. Individuals decide whether to invest in additional education according to their expectations regarding future environmental quality. They also vote on a tax that will be exclusively used to finance environmental protection. We show that the model may generate multiple equilibria and agents' expectations may be self-fulfilling when the public policy is endogenous. Then, we analyse the long-term implications of a public policy that would favour education and make it possible to select the higher equilibrium.
    Keywords: Environmental quality, human capital, education, self-fulfilling prophecies, public policy.
    JEL: I28 H20 O16 O40 Q58
    Date: 2010–05
    URL: http://d.repec.org/n?u=RePEc:mse:cesdoc:10042&r=env
  13. By: Tisdell, Clem
    Abstract: Outlines how Clem Tisdell came to discover tourism economics and charts the basic route that he followed in developing that interest. This article is developed by first considering his early years (1939 to 1960), that is the period prior to his commencement of postgraduate studies at the Australian National University, then his postgraduate studies at the Australian National University (1961-1963), and his lecturing appointment at this university in the period 1964-1972. It was towards the end of this period that his research interests started to change significantly and provided a springboard for his later focus on tourism economics and the environment. It was during his appointment as Professor of Economics at the University of Newcastle (1972-1989) that his interest in tourism economics âtook-offâ and gathered momentum thanks initially to a research grant from the ASEAN-Australian Joint Research Project in 1982. His interest in this subject continued strongly after he joined The University of Queensland in 1989 and benefited from several research grants, including some from the CRC for Sustainable Tourism. He was appointed Professor Emeritus in this university in 2005 and continues to pursue his interest in tourism economics. Tisdell explains why he has found this interest to be exciting and of value.
    Keywords: China, ecological economics, economic development, environmental economics, India, nature-based tourism, sustainable tourism, tourism economics, wildlife conservation., Environmental Economics and Policy, Teaching/Communication/Extension/Profession, F18, L83, O10, Q5,
    Date: 2010–05
    URL: http://d.repec.org/n?u=RePEc:ags:uqseet:90631&r=env
  14. By: Cui, Jingbo; Lapan, Harvey; Moschini, GianCarlo; Cooper, Joseph
    Abstract: We employ an open economy general equilibrium model to investigate the effects of government energy policy, with an emphasis on corn-based ethanol, on the U.S. economy. The model specification incorporates world and domestic markets, assumes pollution costs from fuel consumption, and allows endogenous determination of equilibrium quantities and prices for oil, corn and ethanol. The model is calibrated to represent a recent benchmark data set for 2009 and is used to simulate the positive and normative effects of alternative policies. We find that a second best policy of a fuel tax and ethanol subsidy approximates fairly closely the welfare gains associated with the first-best policy of an optimal carbon tax and tariffs on traded goods. The largest economic gains to the U.S. economy from these energy policies arise from the impact of the policies on U.S. terms of trade, particularly in the oil market. We also find that, conditional on the current fuel tax, an optimal ethanol mandate is superior to an optimal ethanol subsidy. In the benchmark case, the optimal ethanol mandate is about 18 billion gallons.
    Keywords: Biofuel policies; carbon tax; ethanol subsidy; gasoline tax; Greenhouse gas emissions; Mandates; renewable fuel standard; Second best; welfare.
    JEL: F1 H2 Q2
    Date: 2010–06–09
    URL: http://d.repec.org/n?u=RePEc:isu:genres:31618&r=env
  15. By: Myung Ko (University of Texas at San Antonio)
    Abstract: The purpose of our study is to investigate the impacts of Information Technology (IT) innovation and environmental consciousness on firm performance. We tested the robustness of innovation theory using the most recent Information Week (IW) 500 annual datasets. As expected, performance of IT innovators was better than their industry average performance. However, performance of environmentally conscious IT innovators is frequently no better than that of less conscious IT innovative firms. And, for some performance indicators, less environmentally conscious IT innovative firms out-performed more environmentally conscious IT innovative firms.
    Keywords: Information technology (IT) innovation, firm performance, organizational innovation, IT role, environmental consciousness, and environmental performance
    JEL: Q55
    URL: http://d.repec.org/n?u=RePEc:tsa:wpaper:0109&r=env
  16. By: Luthfi Fatah (Faculty of Agriculture Lambung Mangkurat University); Udiansyah (Faculty of Agriculture Lambung Mangkurat University)
    Abstract: This study highlights the root causes of forest fires in Indonesia and assesses a range of potential new policy options to improve the situation. Uncontrolled forest fires are one of the key causes of habitat destruction in Indonesia. The haze they produce causes significant pollution problems for people in the country and in surrounding nations. Partly as a result of these fires, Indonesia is currently losing nearly two million hectares of forest every year. Deforestation on this scale, at this speed, is unprecedented and deeply worrying. Indonesia's forests are home to a large share of the world's biodiversity and also provide a livelihood for millions of people. The study finds that the weak enforcement of forest conservation rules and regulations is a key problem and that this is caused by a wide range of resource and institutional failures. It highlights three key policy improvements that would address the forest fire problem in a cost effective way. The improvements involve strengthening policy implementation in the field, putting in place an effective reward and punishment system and the establishment of an institution to monitor and record stakeholder compliance and violation. The study recommends that all three of these policy options are of a high priority. It also highlights a number of steps that must be taken to make sure that they are implemented effectively. These include ensuring that parliament supports and finances the appropriate policies, and empowering local communities to help weed out corruption and bribery.
    Keywords: forest fire, Indonesia
    Date: 2010–04
    URL: http://d.repec.org/n?u=RePEc:eep:report:rr2010041&r=env
  17. By: Bezabih, Mintewab; Chambwera, Muyeye; Stage, Jesper
    Abstract: This paper analyzes the economic impacts of climate change-induced adjustments on the performance of the Tanzanian economy, using a countrywide CGE (computable general equilibrium) model. The general equilibrium framework enables comparison of the effects of climate change to the overall growth of the economy because responsiveness to shocks is likely to depend on the macroeconomic structure of the economy. Effect of overall climate change on agricultural productivity is projected to be relatively limited until approximately 2030 and become worse thereafter. Our simulation results indicate that, despite the projected reduction in agricultural productivity, the negative impacts can potentially be quite limited. This is because the time scales involved and the low starting point of the economy leave ample time for factor substitutability (i.e., replacing reduced land productivity with increased use of capital and labor) and increased overall productivity. This indicates that policies that give farmers opportunity to invest in autonomous climate adaptation, as well as policies that improve the overall performance of the economy, can be as important for reducing the impacts of climate change in the economy as direct government policies for climate adaptation. The study results can inform policymakers when choosing between direct climate-change adaptation policies or measures aimed at strengthening the fundamentals of the economy, as ways of insulating against external shocks.
    Keywords: climate change, agriculture, total factor productivity, Tanzania, CGE model
    JEL: Q18 C02
    Date: 2010–06–08
    URL: http://d.repec.org/n?u=RePEc:rff:dpaper:dp-10-14-efd&r=env
  18. By: Beria Leimona (The World Agroforestry Center); Brooke Kelsey Jack (The World Agroforestry Center); Betha Lusiana (The World Agroforestry Center); Rachman Pasha (The World Agroforestry Center)
    Abstract: The setting of this study is a watershed in Lampung, Indonesia where soil erosion has broad implications for both on-site and off-site environmental damage. The strategy to engage farmers in environmental protection initiative is through the Payment for Environmental Services (PES) scheme. A key condition of PES is transparency regarding the conditions under which incentives or rewards can be granted. Balanced information and the power of transaction are the basis for any environmental service (ES). A contract procurement auction is an alternative mechanism for extracting information from ES providers on levels of payments or incentives that will cover their costs when joining a conservation program. This study tested the application of a procurement auction method to reveal hidden information on the opportunity costs of supplying environmental services. The result show that a seal-bid, multiple round second-price Vickrey auction with a uniform price can be applied where most of the auction participants have a low education level, low asset endowment, small plot size and where market-based competitiveness is not common. It reveals too that farmers' bids to be involved in conservation contracts is more dependent on their learning process during the auction than observable factors such as their socioeconomic background, their awareness of conservation and their social capital state. Finally, it shows that introducing procurement auction as a market-based approach to rural communities does not harm their social relationships and is an applicable method in a rural setting.
    Keywords: watershed, Indonesia
    Date: 2010–04
    URL: http://d.repec.org/n?u=RePEc:eep:report:rr2010042&r=env
  19. By: Yoshida, Jiro; Sugiura, Ayako
    Abstract: This is one of the first researches on price differentials of green buildings in Asia. Using a rich set of data on condominium transactions and mandatory evaluation of environmental performance in Tokyo, we estimate the effects of itemized green scores on transaction prices. Although green condominiums are on average traded at a premium, the premium is mainly attributed to the building age and quality. After controlling for relevant attributes, we find significant price discounts for newly constructed green condominiums. However, green condominiums experience little depreciation at least during the initial years. Using itemized scores, we find that the long-life design mitigates price discounts, but other factors such as the use of eco-friendly materials, renewable energy, water reuse, and greening exacerbate discounts. Several possibilities are discussed including high future maintenance costs of green condominiums.
    Keywords: sustainability; green building; hedonic pricing; transaction price; residential real estate; Japan
    JEL: Q51 R31 R21
    Date: 2010–03–26
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:23124&r=env
  20. By: Prins, Gwyn; Galiana, Isabel; Green, Christopher; Grundmann, Reiner; Korhola, Atte; Laird, Frank; Nordhaus, Ted; Pielke Jnr, Roger; Rayner, Steve; Sarewitz, Daniel; Shellenberger, Michael; Stehr, Nico; Tezuko, Hiroyuki
    Date: 2010–04
    URL: http://d.repec.org/n?u=RePEc:ner:lselon:http://eprints.lse.ac.uk/27939/&r=env
  21. By: Xie Xuxuan (Beijing University, China); Wu Dan (Beijing University, China)
    Abstract: Ground level ozone pollution is one of the most significant air pollution problems in Beijing. Because of the complex way in which ozone is formed, it is difficult for policy makers to decide which ozone control options are the most cost-effective. This study, assessed a range of options for addressing this proble. The effectiveness and economic cost of these options are compared. The study recommends the most effective sequence in which the options should be adopted to deliver the lowest cost pollution control.
    Keywords: pollution, China
    Date: 2010–03
    URL: http://d.repec.org/n?u=RePEc:eep:pbrief:pb2010031&r=env
  22. By: Burtraw, Dallas (Resources for the Future); Goeree, Jacob; Holt, Charles; Myers, Erica; Palmer, Karen (Resources for the Future); Shobe, William
    Abstract: Auctions are increasingly being used to allocate emissions allowances (“permits”) for cap and trade and common-pool resource management programs. These auctions create thick markets that can provide important information about changes in current market conditions. This paper reports a laboratory experiment in which half of the bidders experienced unannounced increases in their willingness to pay for permits. The focus is on the extent to which the predicted price increase due to the demand shift is reflected in sales prices under alternative auction formats. Price tracking is good for uniform-price, sealed-bid auctions and for multiround clock auctions, with or without end-of-round information about excess demand. Price inertia is observed for “pay as bid” (discriminatory) auctions, especially for a continuous discriminatory format in which bids could be changed at will during a prespecified time window, in part because “sniping” in the final moments blocked the full effect of the demand shock.
    Keywords: auction, greenhouse gases, price discovery, cap-and-trade, emissions allowances, laboratory experiment
    JEL: C92 D44 Q5
    Date: 2010–06–03
    URL: http://d.repec.org/n?u=RePEc:rff:dpaper:dp-10-32&r=env
  23. By: Katrin Millock (Centre d'Economie de la Sorbonne); Céline Nauges (Toulouse School of Economics (LERNA-INRA))
    Abstract: Using survey data of around 10,000 households from 10 OECD countries, we identify the driving factors of household adoption of water-efficient equipment by estimating Probit models of a household's probability to invest in such equipment. The results indicate that environmental attitudes and ownership status are strong predictors of adoption of water-efficient equipment. In terms of policy, we find that households that were both metered and charged for their water individually had a much higher probability to invest in water-efficient equipment compared to households that paid a flat fee.
    Keywords: Attitudes, metering, residential water use, technology adoption.
    JEL: D12 O33 Q25 Q58
    Date: 2010–06
    URL: http://d.repec.org/n?u=RePEc:mse:cesdoc:10044&r=env
  24. By: Spencer, James H.
    Abstract: Recent efforts to reinvigorate the connections between urban planning and health have usefully brought the field back to one of its original roles. Current research, however, has focused on industrialized cities, overlooking some of the important urbanization processes in poor countries. This paper describes an emerging ‘health transition’ and the importance of socio-ecological approaches to understanding new health challenges in the developing world and uses the empirical case of Vietnam to examine the development dilemma of new industrial health concerns associated with economic development. The paper summarizes original qualitative data suggesting that one of the main benefits and rationales of the system is the improvement in public health that it has promoted. Using a related original sample survey (n=200) from 2005, the paper then tests a set of hypotheses about the relationship between illness, connections to the new system, and the role of pollution of natural water sources in illness. Findings suggest that fears of illness, and in particular new forms of industrial illnesses, are growing with rapid development as old forms of acute water borne disease are of less concern.
    Keywords: Water supply, perceptions, environmental health, transition, urbanization
    Date: 2010
    URL: http://d.repec.org/n?u=RePEc:unu:wpaper:wp2010-66&r=env
  25. By: Dang Le Hoa; Nguyen Thi Y Ly
    Abstract: Lo Go - Xa Mat National Park has great value in terms of biodiversity but preserving the park is a great challenge for the Vietnamese government. This study estimated the willingness to pay of households to preserve Lo Go - Xa Mat National Park, using the contingent valuation method. We employed the single-bounded dichotomous choice question format to estimate how much households in Ho Chi Minh City were willing to contribute towards a preservation plan for the park. This plan comprised twelve preservation activities and compensating the local communities for their foregone income. The study found that households in Ho Chi Minh City were willing to pay at least VND 6,209 per month for three years for the preservation of Lo Go - Xa Mat National Park. With protest votes included, factors strongly affecting households' willingness to pay were bid amount and the amount of their monthly electricity bill. The education level of the respondents and the number of working people in the household had significant but lesser impact on their willingness to pay. Without protest votes, the bid amount, monthly electricity bill amount and education level of respondents significantly affected willingness to pay. We found that the annualized benefit value of the project was larger than its annualized cost. This indicated that the preservation plan was economically viable. This study does not provide the total value of Lo Go - Xa Mat National Park, but it shows the great value of the park in terms of local households' willingness to pay for its preservation and this is important information for policy-makers in deciding how to protect the park efficiently.
    Keywords: willingness to pay, Vietnam
    Date: 2009–11
    URL: http://d.repec.org/n?u=RePEc:eep:tpaper:tp200911t2&r=env
  26. By: Alice Joan G. Ferrer (Division of Social Science, University of The Philippines Visayas)
    Abstract: This study assesses a number of potential management options that could help protect biodiversity in the Visayan Sea and help its fishing communities to earn a better living. The Visayan Sea is one of the most important and threatened marine areas in the Philippines. It is a source of income and food for thousands of people and an ecological resource of world importance. However, over exploitation means that fishing in the area is no longer sustainable, that fish stocks are suffering and that fishing communities are losing their livelihoods. The study finds that the best way forward would be to use a combination of management options, including putting in place a marine protected area and implementing various fishing bans. The study also recommends that a single management body should be set up to oversee the implementation of this multi-pronged approach. It is clear that the current state of the Visayan Sea calls for immediate intervention to arrest further decline in the quality of the marine resource. Any delay in addressing the problems the sea faces will simply worsen the difficult situation many fishers already face. If action is delayed until the fishery resource in the sea totally collapses then a major social crisis will be unavoidable.
    Keywords: fisheries, Philippines
    Date: 2009–12
    URL: http://d.repec.org/n?u=RePEc:eep:report:rr2009121&r=env
  27. By: Khamphay Manivong; Phouthone Sophathilath
    Abstract: Shifting cultivation, a farming practice on which majority of the upland population in the Lao People Democratic Republic (Lao PDR) has been heavily dependent upon, was identified as the main cause of rapid deforestation in the country. To address the problem, a Land Use Planning and Land Allocation (LUP/LA) program has been implemented since the start of the 1990s. This study reviewed the LUP/LA policy and assessed the implementation of the program as well as its livelihood and environmental impacts. Research undertaken in two districts - at Xieng Ngeun district of Luangphabang province and at Namo district of Oudomxay province - showed the need for program improvement. Recommendations are provided to improve program implementation.
    Keywords: land use, Lao PDR
    Date: 2009–10
    URL: http://d.repec.org/n?u=RePEc:eep:tpaper:tp200910t2&r=env
  28. By: Kaisorn Thanthathep (Environmental Training Center and the Environment Research Institute); Phousavanh Douangphila (Environmental Training Center and the Environment Research Institute); Somphone Khamphanh (Environmental Training Center and the Environment Research Institute)
    Abstract: River systems play a crucial role in local livelihoods since they provide water for agricultural production. The rapid increase in the number of factories impacts these river systems both positively and negatively. While industrial growth provides local communities with employment and income, it also causes air pollution and contaminates river systems because of industrial wastewater discharge. Pulp and paper mills are among the industries that cause air, water, and solid waste pollution, all of which impact livestock, agricultural production and local livelihood. At the time of this study in 2005, there were six pulp and paper mills operating throughout the country. Five were located in Vientiane Capital City and one in Vientiane Province. Compared to those in neighboring countries, these were small-scale pulp and paper mills with less than 200 tonnes of output per day. Among them, only the one in Vientiane Capital City had installed a wastewater treatment system. However, this did not operate full-time to save on energy and costs. Given that most of the Lao people relied on streams and rivers for their water consumption, the government recognized that the quality of water in these bodies was crucial, especially to the lives and livelihood of poor villagers. Therefore, in accordance with the Millennium Development Goals, the government set targets in order to improve the local people's access to safe drinking water by the year 2015.
    Keywords: waste water, Lao PDR
    Date: 2009–10
    URL: http://d.repec.org/n?u=RePEc:eep:tpaper:tp200910t3&r=env
  29. By: Pek, Chuen-Khee; Tee, Chee-Hoong; Ng, Phuay-Ying
    Abstract: This study estimates the economic values of household preference for preservation and conservation of hill recreational and services values in Malaysia. The Contingent Valuation technique is employed on 100 randomly selected households in the vicinities of Taman Melawati Hill. The study finds that hill preservation is important and the public is willing to pay for initiatives to mitigate further degradation to this ecosystem. More specifically, the study ascertains that households on average are willing to donate MYR92.40 per annum to the trust fund for hill mitigation management initiatives. This value conveys a total economic value of MYR51.6 million per annum, based on the Selangor state population who are willing to pay for the mitigation cause. This substantial value can help policy makers to identify any mismatch between what the public actually demands and are wiling to pay for and the degradation to the supply due to modern developments.
    Keywords: willingness-to-pay; hill recreational and services values; contingent valuation
    JEL: Q51
    Date: 2010–05–18
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:23125&r=env
  30. By: Prabodh Illukpitiya (University of Hawaii)
    Abstract: Households living in peripheral villages of the natural forests are primarily dependent on agriculture and secondarily dependent on forest gatherings. High rates of forest dependency occur, in part, from the efforts of inefficient farmers securing subsistence. Due to excessive use, the productivity of the remaining forests is at a critical stage. Technical efficiency in agriculture in forest peripheries is one aspect in which agricultural capacity and rural incomes can be enhanced. The study's main objective was to assess the efficiency of farming in forest margins and to determine its effect on dependency on forest resources by rural households. The findings of the study showed that the mean technical efficiency in agricultural farming in forest peripheries ranges between 67 - 73 percent. Factors such as age, education, experience, extension, and the nutrition status of the household head are mainly responsible for determining the level of inefficiency. Further, study findings showed factors such as technical efficiency in agriculture, off-farm income, wealth and the diversification index had negative and significant effects on dependency of rural households on forest resource extraction. It is estimated that on average, an increase in mean technical efficiency in agriculture by 10 percent would increase agricultural revenue by 2,142 - 3,987 rupees/farm. Based on the threshold efficiency levels needed to arrest forest dependency, it is estimated that increasing agricultural income through increasing technical efficiency can be partly compensated for forest resource extraction. Compared to the measured efficiency levels, the efficiency gaps needs to be addressed by policy measures range from 2-14 percent for NTFP categories and 10-26 percent for the fuelwood category. Technical efficiency in agriculture can be minimized via policies to enhance farmer education, extension and nutrition status of households. Income diversification and off-farm employment, may be other viable options to minimize forest dependency. Based on the economic value of forest products extracted from each forest reserve, it is estimated that increasing technical efficiency in agriculture by 10 percent would reduce the opportunity cost of biodiversity conservation by 27, 46, 34 and 75 percents respectively in the forest under investigation. The study findings showed that intersectoral activities such as agriculture produce positive externalities in forest conservation. Additional revenue generated by improving technical efficiency of agriculture can be partly compensated for the income gained by extracting forest goods. Hence, improving technical efficiency in farming in forest peripheries should be an integral part of forest conservation policy in Sri Lanka.
    Keywords: bioenergy, Sri Lanka
    Date: 2009–10
    URL: http://d.repec.org/n?u=RePEc:eep:tpaper:tp200910t1&r=env
  31. By: Wu Jian (School of Environment and Natural Resources, Renmin University of China); Wang Xiaoxia (School of Environment and Natural Resources, Renmin University of China); Niu Kunyu (School of Environment and Natural Resources, Renmin University of China)
    Abstract: This study assesses a number of potential policy options that could help protect the Qixinghe Wetlands which lie in the country's Sanjiang Plain. The region's wetlands are the most important breeding ground and migration route for waterfowls in Northeastern Asia, and provide a habitat for numerous species of wildlife. They face many challenges, one of the most significant being the disruption of the water supplies that feed them. Agriculture is the main cause of this problem, accounting for more than 75% of the total water use in the area. As the flow of water entering the wetlands is diverted, its ecosystem is damaged. This problem affects many wetland areas in China. The study is the work of a team of researchers from Renmin University of China, led by Wu Jian. It assesses the best way to reduce the conflict between wetland water needs and off-site water use. Its overall aim is to help policy makers decide how best to balance economic development with wetland conservation. The study recommends that the local government should reconstruct the irrigation system in the area surrounding the Qixinghe Wetlands as soon as possible. At the same time, training on water saving practices should be promoted amongst farmers. The study also suggests how these two key policies could be supported by improvements in conservation funding and management.
    Keywords: wetland, China
    Date: 2010–02
    URL: http://d.repec.org/n?u=RePEc:eep:report:rr2010021&r=env
  32. By: Dikgang, Johane; Visser, Martine
    Abstract: This paper investigates the use of charges and standards in dealing with a common externality, plastic litter from shopping bags in Botswana. The country passed a plastic bag tax (effective 2007) to curb the plastic bag demand. Interestingly, the legislation did not force retailers to charge for plastic bags, which they did voluntarily at different prices. We assessed the environmental effectiveness and efficiency of the plastic bag legislation by analyzing consumers’ sensitivity to the improvement of the plastic bag and related price charges. The introduction of the plastic bag levy led to a significant decline in the consumption of plastic bags per 1,000 Botswana pulas of shopping. The partial success of the Botswana levy was due to the constantly high prices of the bags.
    Keywords: demand, environment, litter, plastic bags, price
    JEL: Q53 Q58
    Date: 2010–05–25
    URL: http://d.repec.org/n?u=RePEc:rff:dpaper:dp-10-13-efd&r=env
  33. By: Rawadee Jarungrattanapong; Areeya Manasboonphemphool
    Abstract: Coastal erosion is a serious problem in Thailand nowadays. The impacts of coastal erosion on the flat and low-lying Gulf area are expected to be high. The sediment supply to the coasts in the Upper Gulf of Thailand, including Bang Khun Thian district in Bangkok, has been decreasing because of dam constructions, combined with relative sealevel rise (subsidence) due to excessive ground water extraction. The loss of coastal land significantly affects the livelihood of the local people. At present, the Bangkok boundary mark at Bang Khun Thian district is already submerged. The mark was made taller by the Bangkok Metropolitan Administration afterwards. Over the past 28 years, coastal erosion has decreased the shoreline by 4-800 meters, at the rate of 20-25 meters per year. Two villages in Bang Khun Thian, whose major economic activities are shrimp and blood cockle farming, have been affected by coastal erosion. This study aims to determine households' adaptation strategies to address coastal erosion/flooding. It entailed a site visit, discussion with the local people, literature review, and a household survey. The results indicate that households have individually applied three types of autonomous adaptation strategies, which are (1) protection (e.g., stone breakwaters, bamboo revetments, and dike heightening), (2) retreat, and (3) accommodation. Of these, protection is the most popular. Each household had applied more than one adaptation option. The annual adaptation cost is approximately US$3,130 per household, which is equal to 23 percent of the average household income. The average inundated area is about 0.9 hectare per household or 8 percent of the household aquaculture area. The existing government's assistance for coastal erosion/flooding is in the form of stone breakwater, which is ineffective, and flooding compensation. This study showed that individual adaptation strategies, without any collective adaptation strategies, may not be effective solutions due to the occurrence of negative externalities if the neighbors do not apply/maintain their own protection structures. Secondly, due to low educational attainment and lack of other knowledge and skills, farmers could not shift to other occupations. This lack of livelihood choices explains why farmers are willing to pay highly to apply/maintain their protection structures. Lastly, for the protection structure to be effective in protecting the shore, it should be planned for the whole Upper Gulf of Thailand. Thus, the cooperation of the national government, local governments, and the public is necessary to address the problem of coastal erosion/flooding.
    Keywords: coastal erosion, Thailand
    Date: 2009–11
    URL: http://d.repec.org/n?u=RePEc:eep:tpaper:tp200911t1&r=env
  34. By: Pek, Chuen Khee; Othman, Jamal
    Abstract: This paper estimates the economic values of household preference for enhanced solid waste disposal services in Malaysia. The contingent valuation (CV) method estimates an average additional monthly willingness-to-pay (WTP) in solid waste management charges of €0.77 to 0.80 for improved waste disposal services quality. The finding of a slightly higher WTP from the generic CV question than that of label-specific, further reveals a higher WTP for sanitary landfill, at €0.90, than incineration, at €0.63. This suggests that sanitary landfill is a more preferred alternative. The logistic regression estimation procedure reveals that household’s concern of where their rubbish is disposed, age, ownership of house, household income and format of CV question are significant factors in influencing WTP.
    Keywords: contingent valuation; logistic regression; solid waste disposal; willingness-to-pay.
    JEL: Q51
    Date: 2010–06–01
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:23143&r=env
  35. By: Wu Jian (School of Environment and Natural Resources, Renmin University of China); Wang Xiaoxia (School of Environment and Natural Resources, Renmin University of China); Niu Kunyu (School of Environment and Natural Resources, Renmin University of China); Li Shushan (School of Environment and Natural Resources, Renmin University of China)
    Abstract: Wetlands are one of the world's most ecologically important and productive ecosystems. They face many challenges, one of the most sifnificant being the disruption of the water supplies that feed them. As the flow of water entering a wetland is diverted to other uses, the werland's ecosystme is damaged. This problem affects many wetland areas in China. This study assesses the situation in the Qixinghe Wetlands which lie in the country's Sanjiang Plain. The study hifhlights two policy options that could help improve the water supply to this important wetland area and suggests how these policies could be supported by improvements in funding and institutional support.
    Keywords: wetland conservation, China
    Date: 2010–02
    URL: http://d.repec.org/n?u=RePEc:eep:pbrief:pb2010021&r=env

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