|
on Environmental Economics |
| By: | Felix Creutzig (Department of Economics of Climate Change, TU Berlin); Emily McGlynn; Jan Minx; Ottmar Edenhofer |
| Abstract: | The global rise of greenhouse gas (GHG) emissions and its potentially devastating consequences require a comprehensive regulatory framework for reducing emissions, including those from the transport sector. Alternative fuels and technologies have been promoted as means for reducing the carbon intensity of the transport sector. However, the overall transport policy framework in major world economies is geared towards the use of conventional fossil fuels. This paper evaluates the effectiveness and efficiency of current climate policies for road transport that (1) target fuel producers and/or car manufacturers, and (2) influence use of alternative fuels and technologies. With diversifying fuel supply chains, carbon intensity of fuels and energy efficiency of vehicles cannot be regulated by a single instrument. We demonstrate that vehicles are best regulated across all fuels in terms of energy per distance. We conclude that price-based policies and a cap on total emissions are essential for alleviating rebound effects and perverse incentives of fuel efficiency standards and low carbon fuel standards. In tandem with existing policy tools, cap and price signal policies incentivize all emissions reduction options. Design and effects of cap and trade in the transport sector are investigated in the companion article (Flachsland et al., 2010). |
| Keywords: | Fuel efficiency standards, low carbon fuel standards, climate change |
| JEL: | Z0 Z1 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:ecc:wpaper:1&r=env |
| By: | Ivan Hašcic; Nick Johnstone; Fleur Watson; Chris Kaminker |
| Abstract: | Technological innovation can lower the cost of achieving environmental objectives. As such, understanding the linkages between environmental policy and technological innovation in achieving environmental objectives is important. This is particularly true in the area of climate change, where the economic costs of slowing the rate of change are affected to a great extent by the rate of innovation. This paper provides evidence on the generation and international diffusion of selected climate change mitigation technologies (CCMTs) and their respective links to key policies. The data covers a selection of technology fields (renewable energy and ‘clean’ coal) and all countries over the last 30-35 years.<BR>L’innovation technologique peut abaisser le coût de la réalisation des objectifs environnementaux. A ce titre, il importe de comprendre les liens entre politique de l’environnement et innovation technologique dans la mise en oeuvre des objectifs, notamment dans le domaine du changement climatique, où le taux d’innovation a une forte incidence sur les coûts économiques du ralentissement du phénomène. Le présent ouvrage fournit des données sur la création et la diffusion internationale de certaines technologies d’atténuation du changement climatique, et sur leurs liens avec les principales initiatives des pouvoirs publics. Les données portent sur un éventail de domaines technologiques (énergies renouvelables et charbon propre) et, pour tous les pays, sur les 30 à 35 dernières années. |
| Keywords: | environmental policy, innovation, technology transfer, climate change, politique environnementale, innovation, changement climatique, transfert de technologie |
| JEL: | O31 O33 Q42 Q54 Q55 |
| Date: | 2010–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:30-en&r=env |
| By: | Iwata, Hiroki; Okada, Keisuke |
| Abstract: | This paper examines the effects of environmental performance on financial performance using the data of Japanese manufacturing firms from 2004 to 2008. As the environmental performance, our study considers the two different environmental issues of waste and greenhouse gas emissions in capturing the effects of corporate environmental management on financial performance. In addition, to clarify how each financial performance responds to a firm’s effort in dealing with different environmental issues, we utilize many financial performance indices reflecting various market evaluations. Our estimation results show the different effects of each environmental performance on financial performances. For example, while an increase in waste emissions generally improves financial performance, their reduction ameliorates financial performance in dirty industries. In addition, while greenhouse gas reduction leads to an increase in return on equity, it does not have a significant effect on return on sales which reflects the evaluation in the goods market, and it leads to a decrease in the natural logarithm of Tobin’s q, which indicates the value of intangible assets. |
| Keywords: | Environmental Performance; Financial Performance; Japanese Manufacturing Firms; Waste Emissions; Greenhouse Gas Emissions |
| JEL: | D21 Q56 Q53 |
| Date: | 2010–12–28 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27721&r=env |
| By: | Jiang, Yong; Koo, Won W. |
| Abstract: | The purpose of this study is to examine the possible impacts of cap-and-trade climate policy on agricultural producers in North Dakota. In this study, we focused on carbon sequestration potential and production cost impacts of carbon prices, and explicitly considered farmer preferences and adaptation behavior to estimate the benefits and costs of greenhouse gas cap-and-trade. Based on empirically estimated farmer behavior models, a policy simulation with agricultural census data identified farmer acreage allocation for carbon sequestration, carbon offset supplies and revenues, the production cost impacts of carbon prices, and impacts on net farm income and their distributions among heterogeneous farmers. Our analysis found that: 1) farmer ex ante preferences in general were biased against carbon sequestration participation although farmer involvement increased with carbon prices; 2) with the fertilizer industry exempted from cap-and-trade regulation, the production cost impact would be small, and more than half of the farms would gain with a carbon price possibly greater than $10 per metric ton of carbon; and 3) the production cost impact with a caped fertilizer industry would be 2 times higher, and more than half of the farms or farmland would lose unless the carbon price could reach more than $55 per metric ton of carbon. |
| Keywords: | cap-and-trade, climate change, agricultural impacts, economics, carbon sequestration, Agricultural Finance, Financial Economics, |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nddaae:98170&r=env |
| By: | Eric Bahel |
| Abstract: | The present paper proposes a dynamic framework for the analysis of emissions abatement by different countries. Unlike many related works, it emphasizes the non-cooperative aspects of this issue. We derive the feedback Nash equilibrium as well as the cooperative emissions paths. Under the cooperative scenario, pollution is always lower: the international agency imposes lower emissions to the countries in early periods. Surprisingly enough, emissions might be higher in very distant periods under the cooperative scenario. A transfer scheme allowing to achieve global effciency is proposed. |
| Keywords: | emissions, strategic abatement, pollution stock, feedback (closed-loop) Nash equilibrium, cooperation, transfers. |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:vpi:wpaper:e07-25&r=env |
| By: | Lemoine, Derek M.; Traeger, Christian P. |
| Abstract: | The threat of crossing tipping points in the climate system often serves as an argument for more stringent greenhouse gas emission reductions. We introduce such regime shifts into a recursive relative of the DICE integrated assessment model for determining optimal climate policies. Each period's carbon dioxide concentration determines the probability of crossing a tipping point, and the policymaker re-optimizes once a tipping point occurs. The probability, timing, and knowledge of tipping points are endogenous. Our policymaker can also display ambiguity aversion in assessing tipping point uncertainty. We fi�nd that tipping points increase the near-term social cost of carbon by 50-100% when they raise climate sensitivity or make damages more convex. They have less of an e�ffect when they increase the atmospheric lifetime of CO2 or the quantity of non-CO2 greenhouse gases. Uncertainty about tipping points can reduce their e�ffect on policy. The possibility of tipping points is more important for the social cost of carbon than is the ambiguity attitude used in their evaluation. |
| Keywords: | climate change, tipping points, ambiguity aversion, uncertainty, integrated assessment, risk aversion, intertemporal substitution, recursive utility, dynamic programming |
| Date: | 2010–12–21 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:agrebk:1704668&r=env |
| By: | Christian Flachsland; Steffen Brunner; Ottmar Edenhofer; Felix Creutzig |
| Abstract: | Current policies in the road transport sector fail to deliver consistent and efficient incentives for greenhouse gas abatement (see companion article by Creutzig et al., 2010a). Market-based instruments such as cap-and-trade systems close this policy gap and are complementary to traditional policies which are required where specific market failures arise. Even in presence of strong existing non-market policies, cap-and-trade delivers additional abatement and efficiency by incentivizing demand side abatement options. This paper analyzes generic design options and economic impacts of including the European road transport sector to the EU ETS. The point of regulation in a road transport cap-and-trade system should be upstream in the fuel chain to ensure effectiveness (cover all life-cycle emissions and avoid double-counting), efficiency (incentivize all abatement options) and low transaction costs. Based on year 2020 marginal abatement cost curves from different models and current EU climate policy objectives we show that in contrast to conventional wisdom road transport inclusion would not change the EU ETS allowance price. This puts concerns over industrial carbon leakage as a consequence of adding road transport to the EU ETS into perspective. |
| Keywords: | Climate Policy, Road Transport, Cap-and-trade |
| JEL: | Z0 Z1 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:ecc:wpaper:2&r=env |
| By: | Chen, Susan |
| Abstract: | Forests and timber are important natural resources in the state of Michigan. Forestlands make of 53% of the total land area and the forest related industry and manufacturing sector in Michigan generate approximately $12 billion to the stateâs economy. Though forestry related industry and manufacturing is a multi-billion dollar industry that affects millions of acres of land in Michigan, there have been few recently published articles regarding timber stumpage appraisal in the state particularly about the northern hardwood forests. This paper uses a hedonic timber stumpage appraisal model to calculate stumpage value for state managed forests. The model uses data from Michigan Department of Natural Resources to estimate the affect of various parameters on the accepted bid of public timber sales. From our results we found there were certain parameters that were statistically significant in raising the final bid price of a sales and this may have implications for the management of state owned forest lands. |
| Keywords: | Forests, Hedonics, Stand valuation, Stumpage value, Environmental Economics and Policy, Resource /Energy Economics and Policy, Q23 Forestry, Q51 Valuation of Environmental Effects, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ags:midagr:98072&r=env |
| By: | Gillespie, Rob; Kragt, Marit Ellen |
| Abstract: | A strategic inquiry into underground coal mining in the Southern Coalfield of New South Wales, Australia, identified the need for non-market valuation studies and recommended increased use of benefit cost analysis in assessing individual mining proposals. This paper reports on the results of a choice experiment undertaken for a colliery in the Southern Coalfield. Results from the study are used to aid the New South Wales Government in evaluating alternative proposals to continue underground coal mining operations. Results show that community wellbeing declines with increases in the kilometres of streams, the hectares of swamp, and the number of Aboriginal sites affected by mine subsidence. Community wellbeing increases with the length of time that the Colliery provides 320 jobs. Implicit price estimates from the choice experiment were incorporated into a benefit cost analysis of continued mining at the Colliery to assess the economic efficiency of a range of environmental restrictions on the proposed mining operations. Even though the Colliery generates negative environmental externalities, the continuation of mining at the Colliery was found to be economically efficient under a range of policy scenarios. |
| Keywords: | Australia, benefit cost analysis, coal mining, choice experiments, natural resource management, non-market valuation, Environmental Economics and Policy, Resource /Energy Economics and Policy, D61, Q32, Q38, Q51, |
| Date: | 2010–12–24 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uwauwp:98239&r=env |
| By: | Groth, Christian; Ricci, Francesco |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:23867&r=env |
| By: | Groth, Christian; Ricci, Francesco |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:ler:wpaper:10.27.333&r=env |
| By: | Torben Klarl (University of Augsburg, Department of Economics) |
| Abstract: | In this paper, we investigate the relationship between market dynamics, dynamic resource management and environmental policy. In contrast to static market entry games, this paper draws attention to the effects of market dynamics on resource dynamics et vice versa, because (1) we show that feedback processes are necessary for obtaining a better understanding of what drives the dynamics between the evolution of common-pool resources and the number of harvesters and more importantly, (2) this analysis provides an environment discussing sustainability in an appropriate inasmuch dynamic way. The paper makes following major points: (1) Interpreting the monopoly-scenario as a non-cooperative solution and the firm coexistence solution as a cooperative solution, it is shown that the coexistence solution of this model implies a degenerate saddle-node equilibrium. (2) An increasing number of harvesters does not necessarily imply a lower stock of the common-pool resource in the long run. (3) The paper introduces a way establishing an output-sharing solution by implementing an output tax, which turns out to be a pure effort tax in the long run. (4) Strong resource sustainability is not possible, given cost reducing technological progress is relevant and policy interventions ceased. With respect to environmental policy, we can conclude that a tax scheme is not a substitute to a partnership solution dealing with the common-pool problem, but is treated as an instrument establishing such a solution in the sense of a policy mix approach. |
| Keywords: | sustainability, resource management, environmental policy, common resources, population dynamics |
| JEL: | Q28 Q57 C61 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:aug:augsbe:0315&r=env |
| By: | Ambec, Stefan; Dinar, Ariel |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:ler:wpaper:10.15.321&r=env |
| By: | Drumea, Cristina |
| Abstract: | The world is allegedly warming in a detrimental way because our industrial activity is increasingly emitting the putative culprit for the warming which is the carbon dioxide. The preferred way to deal with the issue is to force an emission reduction by, among others, imposing quotas, creating a sophisticated system of allowances, cap and trade and technology transfers. The European Union, as well as several member States had, at times, pledged various reductions which became law. These pledges come at a cost to the industrial activity. Romania duly signed and ratified all the EU decisions taken after her accession but no clear bill was presented to the taxpayer. In the light of the Copenhagen accord and in preparation of the 2010 Mexican summit on the environment there’s a need to know what are the modeled benefits of limiting the carbon dioxide emissions, and at what costs to the Romanian economy. This paper attempts to shed a light on those issues and to make it easier for the public to follow the intricate details of the trading scheme and its effects. |
| Keywords: | ETS; Copenhagen accord; Kyoto target; Carbon credit |
| JEL: | Q50 F42 F36 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27214&r=env |
| By: | Ambec, Stefan; Cohen, Mark; Elgie, Stewart; Lanoie, Paul |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:ler:wpaper:10.14.320&r=env |
| By: | Van Hecken, Gert; Bastiaensen, Johan; Vásquez, William F. |
| Abstract: | The concept of Payments for Environmental Services (PES) has gained increasing popularity in the conservation literature as it offers the potential to reconcile opposing social and ecological objectives by paying land owners for the positive environmental externalities they generate on their land. Based on extensive fieldwork in Matiguás, Nicaragua, this paper aims to complement the literature on locally-financed PES schemes in agricultural watersheds. Using both qualitative and quantitative research approaches, it inquires into the under-researched demand-side potential by assessing local willingness to pay (WTP) for water and watershed services in an upstream-downstream setting. Our results show a significant WTP for improved water services and a clear local consciousness about upstream-downstream interdependencies, suggesting potential for a ‘Coasean’ water-related PES scheme. Contrary to expectations, the feasibility of such a locally-financed PES system is however undermined by prevailing local perceptions of agricultural externalities and entitlements, questioning the fairness of such payments. Also low levels of mutual trust seem to undermine the credibility of the PES framework. The viability and acceptance of locally-financed PES mechanisms will thus also depend on the prior social production of cognitive synergies and improved collective action. |
| Keywords: | Payments for Environmental Services; Watershed; Willingness to pay; Fairness; Externalities; Institutions |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:iob:dpaper:2010004&r=env |
| By: | Naughton, Helen Tammela |
| Abstract: | This paper examines the impact of five globalization variables on sulfur dioxide and nitrogen oxides emissions in Europe from 1980-2000 in the framework of one empirical model. The spatial autoregressive regression model is estimated using 2SLS. The five variables of interest are trade, foreign direct investment, neighboring countries wealth, cross-border pollution and participation in international environmental treaties. I then omit each of the globalization effects one at a time and find that omitted variable bias would be significant for four of the globalization variables, the exception being neighbors' wealth. |
| Keywords: | globalization; environment; spatial econometrics |
| JEL: | F18 Q53 Q58 |
| Date: | 2010–12–25 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27684&r=env |
| By: | Matías Piaggio (Department d’Economia Aplicada, Universitat Autònoma de Barcelona); Emilio Padilla (Department d’Economia Aplicada, Universitat Autònoma de Barcelona) |
| Abstract: | This paper explores the homogeneity of the functional form, the parameters, and the turning point, when appropriate, of the relationship between CO2 emissions and economic activity for 31 countries (28 OECD, Brazil, China, and India) during the period 1950 to 2006 using cointegration analysis. With a sample highly overlapped over time between countries, the result reveals that the homogeneity across countries is rejected, both in functional form and in the parameters of long term relationship. This confirms the relevance of considering the heterogeneity in exploring the relationship between air pollution and economic activity to avoid spurious parameter estimates and infer a wrong behavior of the functional form, which could lead to induce that the relationship is reversed when in fact it is direct. |
| Keywords: | Bound testing, cointegration, CO2 emissions, environmental Kuznets curve, heterogeneity |
| JEL: | C32 O13 Q53 Q56 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:res:dtecoe:01_2010.pdf&r=env |
| By: | White, Ben; Burton, Michael |
| Abstract: | The principle motivation for using price-discriminating conservation auctions is that they are expected to be significantly more cost-effective than fixed-price mechanisms. This paper measures cost effectiveness for tenders from two rounds of the Auction for Landscape Recovery in Western Australia relative to counterfactual fixed-price mechanisms. If we assume that the bid equals the compliance cost, the auction gives a significant cost saving over fixed-price mechanisms. If instead we assume that bids include an element of rent, fixed-price mechanisms can be more cost effective than the auction. The significance of these results is that a fixed price scheme may achieve a similar level of cost effectiveness to a conservation auction, when one or more of the following apply: compliance costs do not vary significantly between producers, auction bids have a significant element of rent and the auction incurs a significant additional administrative cost. |
| Keywords: | Auctions, conservation, bio-diversity, Environmental Economics and Policy, Q57, |
| Date: | 2010–12–13 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uwauwp:97798&r=env |
| By: | Gerardo Marletto; C. Silling |
| Abstract: | The environmental impact of food transportation depends on the trade-off between (increased) distances and the efficiency of modern logistics procedures. The relevant literature points out that such a trade-off is place and product specific, thus supporting the broadening of “food miles” research to new territories and product categories. Here we analyze the environmental impact – in terms of global warming, local pollution and traffic congestion – of two different canned tomatoes brands produced in Italy and consumed in Sassari (Sardinia, Italy). The supply chain of the first brand extends over the whole continental Italian territory, while the second one is mainly located in Sardinia. Different distribution patterns (modern vs. independent retail) and shopping modalities (foot vs. car) are also considered. The case study shows that the national supply chain contributes to global warming much more than the regional one, and therefore supports the view that shorter supply chains can be more sustainable than efficient logistics. The case study also confirms the very high impact of shopping by car, both in terms of global warming and local pollution. |
| Keywords: | food miles; transportation; logistics; environmental impact; Italy; canned tomatoes |
| JEL: | Q51 L99 Q56 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:cns:cnscwp:201025&r=env |
| By: | Adolf Stroombergen (Infometrics Ltd) |
| Abstract: | This research takes a closer look at the effects of climate change on New Zealand agriculture and on the wider economy, including indirect international effects such as changes in the prices of goods exported from and imported to New Zealand, as well as carbon prices and policies. Economic loss from short term catastrophic events such floods and landslides is not investigated. Infometrics (2007) presented an initial quantitative analysis of some of the above issues. In this paper they update the part of that report that looked at the effect of climate change on agricultural commodity prices, by considering some new scenarios based on international research since 2007, and expand the time-period from 2025 to 2070. |
| Keywords: | agricultural commodity prices, GE modelling |
| JEL: | F18 Q1 Q54 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:mtu:wpaper:10_14&r=env |
| By: | Robert Ackrill; Adrian Kay |
| Abstract: | Biofuels are increasingly being produced and consumed as a partial substitute to fossil-fuel based transport fuels in the fight against climate change. One policy introduced recently by some countries to help ensure biofuels perform better than fossil fuels environmentally is sustainability criteria. These, typically, require lower greenhouse gas emissions than fossil fuels, considering not only their use but also production. Concerns have been expressed from various quarters that such criteria could represent WTO-incompatible barriers to trade. The present paper addresses two specific issues. First, it argues that biofuels should be treated like any other traded product under WTO law, in particular the GATT agreement. Thus an importing country could not impose different trade measures dependent on whether the biofuel was produced according to its sustainability criteria. Second, the TBT Agreement provides guidance on how to draw up international standards that can help ensure WTO compatibility. This cannot guarantee such compatibility, but it can help reduce significantly the chances of WTO Members bringing actions against a fellow Member’s biofuels sustainability criteria. There is little direct case law to draw upon, but it is argued that, if the TBT guidance is followed, in the long term the absence of case law can be taken as an indication that sustainability criteria are WTO-compatible. |
| Keywords: | biofuels, sustainability, WTO |
| JEL: | F13 F18 Q16 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbs:wpaper:2010/9&r=env |
| By: | Carlos Pinho (Departamento de Economia e Gestão Industrial, Universidade de Aveiro, GOVCOPP); Mara Madaleno (Departamento de Economia e Gestão Industrial, Universidade de Aveiro, GOVCOPP) |
| Abstract: | We investigate and empirically estimate optimal hedge ratios, for the first time, in the EU ETS carbon market. Minimum variance hedge ratios are conditionally estimated with multivariate GARCH models, and unconditionally by OLS and the naïve strategy for the European Climate Exchange (ECX) market in the period 2005-2009. Also, utility gains are considered in order to take into account risk-return considerations. Empirical results indicate that dynamic hedging provides superior gains (in reducing the variance portfolio) compared to those obtained from static hedging, when adjustment costs are not taken into account. Moreover, results improve when the leptokurtic characteristics of the data are into consideration through distributions. Results are always compared in and out of sample, suggesting also that utility gains increase with investor's increased preference over risk. |
| Keywords: | CO2 Emission Allowances; Dynamic Hedging; Futures Prices; Risk Management; Spot Prices |
| JEL: | C32 G19 G32 Q54 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:ave:wpaper:552010&r=env |
| By: | Kevin Hanslow |
| Abstract: | This paper describes the initial development of a national integrated assessment model, based on the MMRF model used to analyse the CPRS. The initial development was geared towards delivering a proof of concept simulation to demonstrate the feasibility of the development of such a model. In consultation with the CSIRO, it was decided that a reduction in water availability would be an appropriate simulation, being of relevance and interest, especially in the context of climate change, and entailing a realistic load of model development in the timeframe allowed. |
| Keywords: | CGE models, water, climate change |
| JEL: | C68 |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:cop:wpaper:g-210&r=env |
| By: | Iizuka, Michiko (UNU-MERIT); Katz, Jorge (University of Chile) |
| Abstract: | Chilean salmon farming has been considered as an outstanding example of success after growing at two digit rates for more than twenty years. With further insight, we now know that such rapid process of expansion came at the expense of sanitary and environmental deterioration. The outbreak of ISA- a viral disease that kills salmon - in 2008 has made this utterly clear. The overexploitation of the 'common' - pristine waters - upon which the industry operates, and the lack of an adequate regulatory mechanism monitoring environmental impact contributed to a gradual - but not always adequately perceived - long term decay of industry performance. The paper shows that industries based on the exploitation of a CPR - common pool resource - require a quite different analytical approach than the one conventional neoclassical theory offers us for the understanding of firm and industry behavior. Our study shows that industries of this sort require location specific know how and R&D efforts plus public/private cooperation in order to maintain long term sustainable growth. |
| Keywords: | common pool resources, 'tragedy of commons', natural resource based industry, Chile |
| JEL: | Q22 Q57 L22 O32 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2010061&r=env |
| By: | Serdar Çelik (Department of Mechanical Engineering, Southern Illinois University Edwardsville); William Retzlaff (Department of Biological Sciences, Southern Illinois University Edwardsville); Susan Morgan (Department of Civil Engineering, Southern Illinois University Edwardsville); Ayla Ogus Binatli (Department of Economics, Izmir University of Economics); Cemil Ceylan (Department of Industrial Engineering, Istanbul Technical University) |
| Abstract: | This paper examines the energy savings, environmental benefits, and economic impact of green roof systems applied to a “micro” region in Western Turkey. This subdivision (Artur) in Karaaðaç, Izmir, consists of 1729 residential units, mostly used as summer homes. The units are in 45m2, 60m2, 90m2, and 105m2 sizes. Five different plant types were considered to be blended and planted in two different choices of growth media. Thermal benefits of the vegetated roofs to the pilot site were evaluated using appropriate heat transfer equations. For analyzing the impact of use of such systems on the local economy, monetary injection into the local economy was calculated and a multiplier effect of 2.66 was assumed. Net present value (NPV) of the generated income for the first 10 years was calculated to be approximately $14.5 million. In addition, approximately 300 new local jobs over a period of 10 years were estimated to be created. |
| Keywords: | Green roofs, Economic impact, Energy conservation, Turkey |
| JEL: | Q2 Q4 Q5 |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:izm:wpaper:1001&r=env |
| By: | Penporn Janekarnkij (Department of Agricultural and Resource Economics,Faculty of Economics,Kasetsart University,Thailand); |
| Abstract: | Krabi River Estuary, a ramsar site located in southern Thailand, is dominated by two major natural vegetation assemblages, i.e. mangrove forests and seagrass beds. According to the cluster development strategy, the cabinet has approved in principle to develop Krabi as the global marine tourism center and economic gateway of Asia. This study aimed to assess the economic value of the site, using market price and benefit transfer. The impact on economic activities with the 5% annual decline of mangrove forests was evaluated. The estimated annual use value of the site was $9.7 million for recreation and tourism. The economic value of mangrove forests was $758/ha. The net present value of mangrove forests was $73.1 million based on 7% discount rate and 15-year time line. An approximate impact of mangrove change follows the study of Ruitenbeek (1992). It was assumed that the impact on local direct resource extraction and loss in biodiversity would occur at the year after the depletion of the forest. The impact on the productivity of local fishery would occur in the fifth year and on tourism in the tenth year. Thus, value loss of mangrove at the annual rate of 5% in the net present term became $21.0 million or $2.3 million per year. The results imply that a development project that causes the same rate of mangrove destruction must generate a least an income of $2.3 million per year to be considered as an economically feasible project. |
| Keywords: | Krabi River Estuary,ramsar site,wetland management,economic valuation,direct use values |
| JEL: | Q51 Q57 |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:kau:wpaper:201004&r=env |
| By: | James, Laura |
| Abstract: | Biomass is being researched as a possible alternative to fossil sources of energy, in order to avoid externalities from fossil fuel use that affect the environment and the economy. Some biomass-based energy production systems may produce unwanted externalities in their own right, such as increasing the production pressure on the agricultural land base, resulting in a rise in prices of food commodities. Using marginal land for biomass production has been suggested as a solution. However, the definition of what constitutes marginal land is poorly understood. This paper provides a theoretical foundation for identification of marginal lands, and analyzes recent literature to assess how current usage of the term marginal correspond to the theoretical framework. Then, the paper devises empirical models that test possible methods of identification of the extensive margin of agricultural land in 19 counties in the state of Michigan. The models find that dynamic variables such as price changes have a statistically significant effect on land use change into and out of cropland. Land quality and regional effects are also statistically significant. |
| Keywords: | biomass, biofuel, marginal lands, extensive margin, Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Crop Production/Industries, Environmental Economics and Policy, Production Economics, Research and Development/Tech Change/Emerging Technologies, Resource /Energy Economics and Policy, Q15 Land Ownership and Tenure, Land Reform, Land Use, Irrigation, Agriculture and Environment, Q28 Government Policy, Q42 Alternative Energy Sources, Q48 Government Policy, R14 Land Use Patterns, R52 Land Use and Other Regulations, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ags:midagr:98203&r=env |
| By: | B. Sudhakara Reddy; P. Balachandra (Indira Gandhi Institute of Development Research) |
| Abstract: | This paper aims to analyse urban mobility patterns and consequent impacts on energy and environment in India. We investigate the quantity of energy use in 23 metropolitan regions for the period 1981–2005 and present empirical results obtained using national and urban data sets. It explores the underlying relationship among three dependent variables—energy intensity, type of mode and passenger km. Patterns of energy consumption and CO2 emissions in private and public transport are examined. Some policy recommendations are outlined to reduce urban transport energy use and greenhouse gases and provide suggestions to achieve sustainable urban mobility. |
| Keywords: | Energy, Environment, Intensity, Transport, Urban |
| JEL: | Q4 L94 L95 L98 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:eab:govern:2465&r=env |
| By: | Borissov, Kirill; Surkov, Alexander |
| Abstract: | We develop two models of economic growth with exhaustible natural resources and consumers heterogeneous in time preferences. The first model assumes private ownership of natural resources. In the second model, natural resources are commonly owned and the resource extraction rate is chosen by voting. We show that if discount factors are given exogenously, the long-run rate of growth under private property is higher than or equal to that under common property. If the discount factors are formed endogenously, under some circumstances common property can result in a higher rate of growth than private property. |
| Keywords: | natural resources; economic growth; voting; private property; common property |
| JEL: | Q32 D91 O13 D72 O4 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27524&r=env |
| By: | Nguyen, Manh-Hung; Nguyen-Van, Phu |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:23862&r=env |
| By: | Rohlfs, Wilko (Chair of Heat and Mass Transfer, Faculty of Mechanical Engineering, RWTH Aachen University); Madlener, Reinhard (E.ON Energy Research Center, Institute for Future Energy Consumer Needs and Behavior (FCN), RWTH Aachen University) |
| Abstract: | In this paper we investigate the cost effectiveness of coal-fired CCS plants. Two different model approaches are used. First, we consider marginal costs to determine the impact of fuel and CO2 certificate prices on electricity generation cost. Second, we apply a net present value evaluation to identify the main factors influencing the NPV, using projections for the price of electricity and CO2 as well as the costs of capturing, transporting and storing CO2. The NPV assessment shows that the threshold price of CO2 is highly sensitive with respect to the electricity price. Incorporating the possibility to postpone the CCS investment leads to much higher threshold prices, rendering the investment less attractive from today’s perspective. Finally, with a risk-adjusted discount rate for all CCS options it turns out to be more attractive than with a predefined discount rate of 10%, providing evidence that typical practitioner’s assumtions may indeed be too pessimistic. |
| Keywords: | CCS; Capture-ready; Coal combustion; Retrofit |
| JEL: | C63 O30 |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ris:fcnwpa:2010_008&r=env |
| By: | Ernst, Christian-Simon (Institut für Kraftfahrzeuge (ika), RWTH Aachen University); Lunz, Benedikt (E.ON Energy Research Center, Power Generation and Storage Systems (PGS), RWTH Aachen University); Hackbarth, André (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)); Sauer, Dirk Uwe (E.ON Energy Research Center, Power Generation and Storage Systems (PGS), RWTH Aachen University); Eckstein, Lutz (Institut für Kraftfahrzeuge (ika), RWTH Aachen University); Madlener, Reinhard (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)) |
| Abstract: | The battery size of a Plug-in Hybrid Electric Vehicle (PHEV) is decisive for the pure electrical range of the vehicle and crucial for the cost-effectiveness of this particular vehicle concept. Based on the energy consumption of a conventional reference car and a PHEV, we introduce a comprehensive total cost of ownership model for the average car user in Germany for both vehicle types. The model takes into account the purchase price, fixed annual costs and operating costs. The amortization time of a PHEV also depends on the recharging strategy (once a day, once a night, after each trip), the battery size as well as the battery costs. We find that PHEVs with a 4 kWh battery and at current lithium-ion battery prices reach the breakeven point after about six years (five years when using the lower night-time electricity tariffs). With higher battery capacities the amortization time becomes significantly longer. Even with the small battery size and assuming the EU-15 electricity mix, a PHEV is found to emit only around 60% of the CO2 emissions of a comparable conventional car. Thus, with the PHEV concept a cost-effective introduction of electric mobility and reduction of greenhouse gas emissions can be reached. |
| Keywords: | PHEV; e-mobility; total cost of ownership |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ris:fcnwpa:2010_014&r=env |
| By: | Kato, Kazuhiko |
| Abstract: | The paper compares emission tax and emission quota in a mixed duopoly when the partial privatization of a public firm is allowed. Furthermore, we consider the following two cases with regard to the objective of the public firm: (1) the public firm maximizes the weighted average of its profit and wefare and (2) the public firm maximizes the weighted average of its profit and the sum of consumer surplus and producer surplus. We show that emission tax is welfare superior to emission quota regardless of the degree of partial privatization in (1), whereas the former is inferior to the latter when the degree of partial privatization is high in (2). |
| Keywords: | environment; mixed duopoly; quota; tax |
| JEL: | L33 Q58 |
| Date: | 2010–12–21 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27630&r=env |
| By: | Nguyen, Manh-Hung; Nguyen-Van, Phu |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:ler:wpaper:10.25.331&r=env |
| By: | R. Quentin Grafton; Gary D. Libecap; Eric C. Edwards; R. J. O’Brien; Clay Landry |
| Abstract: | Water markets in Australia’s Murray-Darling Basin (MDB) and the US west are compared in terms of their ability to allocate scarce water resources among competing uses. Both locations have been in the forefront of the development of water markets with defined water rights and conveyance structures to assist in the reallocation of water across competing demands. They also share the challenge of managing water with climate variability and climate change. As these two markets occur in developed, wealthy countries, their experiences in water markets with different water rights (appropriative, riparian and statutory rights) provide ‘best-case’ scenarios of what institutional arrangements work best, indicate which are less effective, and demonstrate what might be possible for greater use of water markets elsewhere in the world. The paper finds that the gains from trade in the MDB is worth hundreds of millions of dollars in per year, total turnover in water rights exceeds $2 billion per year and the volume of trade accounts for over 20% of surface water extractions by irrigators. In the key states of Arizona, California, Colorado, Nevada, and Texas, trades of committed water annually range between 5% and 15% of total state freshwater diversions with over $4.3 billion (2008 $) spent or committed by urban buyers between 1987 and 2008. Despite the clear benefits of water markets in both locations, there are on-going restrictions to trade that limit the potential gains and also third-party effects from use that require resolution. |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:icr:wpicer:28-2010&r=env |
| By: | Carlos Pinho (Departamento de Economia e Gestão Industrial, Universidade de Aveiro, GOVCOPP); Mara Madaleno (Departamento de Economia e Gestão Industrial, Universidade de Aveiro, GOVCOPP) |
| Abstract: | In this work we analyze, explore and measure two of the most important concepts for the theory of storable commodity markets. After analyzing the statistical properties of spot and futures EU ETS allowances for Germany and France, we model and test the risk premium and convenience yield for CO2 contracts accordingly to previous economic theories, for the period 2005-2009. Results indicate that convenience yields are positively related to the spot CO2 return while being negatively influenced by the spot volatility. This negative impact of spot volatility is also verified for the risk premium, with the latter varying positively with time to maturity. Contradicting previous empirical findings, we found only a positive influence of the convenience yield on the risk premium for the ECX French market and for Phase II contracts, leading us to conclude that results are Phase, market and data span dependent. Moreover, results are independent on the volatility forecast used and important for risk management purposes for allowances markets participants. Moreover, day-ahead markets for CO2 are in "normal contango" for the entire data period under analysis, contrary to previous empirical findings for the allowances market. |
| Keywords: | CO2 Emission Allowances; Volatility; Volume; Maturity; Convenience Yield; Risk Premium; Spot Prices; Futures Prices |
| JEL: | C22 C32 G12 G14 Q51 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:ave:wpaper:542010&r=env |
| By: | Aakre, Dwight G.; Haugen, Ronald |
| Abstract: | This report summarizes the 2010 results of the North Dakota Land Valuation Model. The model is used annually to estimate average land values by county, based on the value of production from cropland and non-cropland. The county land values developed from this procedure form the basis for the 2010 valuation of agricultural land for real estate tax assessment. The average all agricultural land value from this analysis is multiplied by the total acres of agricultural land on the county abstract to determine each countyâs total agricultural land value for taxation purposes. The State Board of Equalization compares this value with the total value assessed to agricultural property in each county. Each county is required by state statute to assess a total value of agricultural property within 5 percent of this value. The average value per acre of all agricultural land in North Dakota increased by 10.6 percent from 2009 to 2010 based on the value of production. The value cropland increased by 11.5 percent and non-cropland value increased by 1.7 percent. The formula capitalization rate was below the minimum set by the State Legislature, therefore the minimum rate of 7.7 percent was used. The majority of the increase in values for cropland and all agricultural land was due to the increased value of crop production. This increase in value of production was due primarily to market price increases that occurred in 2007 and 2008. The change in crop revenue impacted land values from a negative 1.6 percent to an increase of 21.8 percent by county. The capitalization rate change increased land valuations by 3.8 percent in all counties; while the cost of production index decreased land values in all counties by 5.3 percent. |
| Keywords: | Land valuation, real estate assessment, agricultural land, Agribusiness, Agricultural Finance, Land Economics/Use, |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nddaae:98133&r=env |
| By: | George DeMartino; Jonathan Moyer; Kate Watkins |
| Abstract: | <p>In the 1990s many heterodox economists joined labor, human rights and environmental advocates in calling for the inclusion of binding labor and environmental standards in trade agreements, along with other measures to ensure that deepening economic integration would serve the goals of promoting human development. Neoclassical trade theorists universally opposed these measures, arguing that countries’ choices over standards represented an entirely legitimate source of comparative advantage. In the end, the free traders prevailed. </p><p>Over the past five years several mainstream trade theorists have reversed course, and begun to call for fair trade. In this context, fair trade is back on the policy agenda. This paper explores the fair trade proposals that emerged in the 1990s, and counterpoises the multilateral Social Index Tariff Structure (SITS) as an alternative fair trade regime. A SITS regime seeks to protect high standards in those countries where they prevail, while providing both the incentives and means for countries that perform poorly in this regard to improve their standards over time. </p><p>This working paper explores the construction of a hypothetical SITS regime; estimates the effects of the regime on bilateral trade flows; and generates estimates of the development funds that SITS would make available to promote human development in low-income countries. The authors find that a global system of social tariffs that are very small in magnitude would generate new, substantial and stable flows of development funds while incentivizing a race to the top in labor and environmental standards.</p> |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:uma:periwp:wp244&r=env |
| By: | Bazhanov, Andrei |
| Abstract: | This paper analyzes a social planner's solution in a resource-based economy under a constant-utility criterion. The utility function includes social progress in a multiplicative form. The resulting paths of consumption include the patterns of growth that are conventionally used in the literature. This approach extends conventional link between the utilitarian criterion and the maximin for the cases with finite elasticity of marginal utility. The closed form solutions, derived for the Dasgupta-Heal-Solow-Stiglitz (DHSS) model, include the result of Solow (1974) and Hartwick (1977) as a specific case. The approach is applied to an example of a distorted resource-extracting economy under the requirement for smoothness of the paths with respect to historical data. |
| Keywords: | essential nonrenewable resource; sustainable growth; geometrically weighted percent; distorted economy |
| JEL: | Q32 Q38 O47 O13 |
| Date: | 2010–08–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27619&r=env |
| By: | Liam Wagner (School of Economics, The University of Queensland); Luke Reedman (Carbon Futures, CSIRO, Energy Transformed Flagship) |
| Abstract: | The development of hybrid and fully electric vehicles could deliver significant reductions of emissions from the Australian transportation sector by shifting its major energy source from internal combustion to electricity. This shift towards the the use of electricity shifts the point source emissions to one which has a lower emissions intensity. Changes in load behaviour as a result of the consumer uptake of these vehicles will have significant consequences for network and central planners for the future of Australia’s electricity supply industry. This paper investigates the effects on the security of supply of energy during these previously unseen demand patterns, while also examining changes to spot market prices and changes in emissions rates. The simulation results indicate that wholesale prices during the off-peak period will increase slowly over time with controlled charging. While uncontrolled charging increases the incidence of extreme price events and a considerable number of hours with un-served energy within the network. This increase in spot prices may have consequences for regulated retail electricity tariffs. We also discuss the implementation of possible changes to the retail tariff structure to accommodate the charging of these vehicles. |
| Keywords: | Electricity Markets, Hybrid Vehicle, Transportation Economics. |
| JEL: | Q40 L91 R40 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uqeemg:06&r=env |
| By: | Eric Bahel |
| Abstract: | This paper studies the stockpiling issue for an oil importing country that is likely to suffer embargoes, the occurrence and duration of which are uncertain. I show the existence of a decreasing reserves path that the country wants to attain in order to hedge against these disruptions. Allowing the importing country to invest in R&D in order to free itself from the embargo threat, I determine the optimal effort that should be engaged in research. The incentive to develop a backstop is shown to increase with the depletion of the reserves. |
| Keywords: | imports, nonrenewable resource, random embargoes, strategic reserves. |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:vpi:wpaper:e07-27&r=env |
| By: | Ambec, Stefan; Sebi, Carine |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:ler:wpaper:10.19.325&r=env |
| By: | Jairam Ramesh |
| Abstract: | The speech is mainly about the "two cultures†(modern society—the cultures of the science and that of the humanities) syndrome—the apparent gap between those espousing the case for faster economic growth and those calling for greater attention to protection of the environment. On the face of it, there should be no gap at all—who can argue against faster economic growth since that alone will generate more jobs and at the same time who can argue against the preservation of our rivers, lakes, mountains and wonderful biodiversity in its myriad forms, since that alone will make for sustainable development. [Text of 11th ISRO-JNCASR Satish Dhawan Memorial Lecture delivered at Jawaharlal Nehru Centre for Advanced Scientifi c Research, Bangalore]. |
| Keywords: | sceinces, real GDP, India, culture, humanities, syndrome, economic growth, environemnt, rivers, lakes, mountains, biodiversity, sustainable development, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:3358&r=env |
| By: | Andersson, Henrik; Jonsson, Lina; Ögren, Mikael |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:ler:wpaper:10.17.323&r=env |
| By: | Carlos Gustavo Machicado (Institute for Advanced Development Studies); Beatriz Muriel (Institute for Advanced Development Studies); Luis Carlos Jemio (Institute for Advanced Development Studies) |
| Abstract: | El presente estudio estima el aporte de los servicios ecosistémicos a la economía y al PIB del sector de Silvicultura, Caza y Pesca, usando dos metodologías complementarias. La primera basada en el Manual de Cuentas Nacionales que considera que el capital natural y específicamente su renta forma parte del Excedente Bruto de Explotación y la segunda, que siguiendo la definición de que los servicios ecosistémicos son bienes de consumo final, calcula el valor del autoconsumo en relación al Valor Bruto de Producción del sector. El uso de la Encuesta de Hogares, para esta segunda metodología, permite además calcular la relevancia del subsidio de la naturaleza al bienestar de los hogares a través del gasto. Este es el primer estudio de este tipo que se hace para Bolivia. |
| Keywords: | Economía y Ecología, Datos Económicos, Sector de Silvicultura, Caza y Pesca, Consumo de Hogares |
| JEL: | A12 C80 R21 |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:adv:wpaper:201012&r=env |