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on Environmental Economics |
| By: | Hoel, Michael (Dept. of Economics, University of Oslo); Jensen, Svenn (Ragnar Frisch Centre for Economic Research) |
| Abstract: | We use a two-period model to investigate intertemporal eects of cost reductions in climate change mitigation technologies for the power sector. With imperfect climate policies, cost reductions related to carbon capture and storage (CCS) may be more desirable than comparable cost reductions related to renewable energy. The nding rests on the incentives fossil resource owners face. With regulations of emissions only in the future, cheaper renewables speed up extraction (the `green paradox'), whereas CCS cost reductions make fossil resources more attractive for future use and lead to postponement of extraction. |
| Keywords: | climate change; exhaustible resources; carbon capture and storage; renewable energy; green paradox |
| JEL: | Q30 Q42 Q54 |
| Date: | 2010–11–03 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:osloec:2010_019&r=env |
| By: | E. Agliardi; L. Sereno |
| Abstract: | The effects of two environmental policy options for the reduction of pollution emissions, i.e. taxes and non-tradable quotas, are analyzed. In contrast to the prior literature this work endogenously takes into account the level of emissions before and after the adoption of the new environmental policy. The level of emissions is determined by solving the firm's profit maximization problem under taxes and fixed quotas. We find that the optimal adoption threshold under taxes is always larger than the adoption threshold under fixed quota, even in a setting characterized by ecological uncertainty and ambiguity - in the form of Choquet-Brownian motions - on future costs and benefits over adopting environmental policies. |
| JEL: | Q28 Q48 L51 H23 |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:bol:bodewp:wp725&r=env |
| By: | Palmer, Karen (Resources for the Future); Paul, Anthony (Resources for the Future); Woerman, Matt |
| Abstract: | Three types of policies that are prominent in the federal debate over addressing greenhouse gas emissions in the United States are a cap-and-trade program (CTP) on emissions, a renewable portfolio standard (RPS) for electricity production, and tax credits for renewable electricity producers. Each of these policies would have different consequences, and combinations of these policies could induce interactions yielding a whole that is not the sum of its parts. This paper utilizes the Haiku electricity market model to evaluate the economic and technology outcomes, climate benefits, and cost-effectiveness of three such policies and all possible combinations of the policies. A central finding is that the carbon dioxide (CO2) emissions reductions from CTP can be significantly greater than those from the other policies, even for similar levels of renewable electricity production, since of the three policies, CTP is the only one that distinguishes electricity generated by coal and natural gas. It follows that CTP is the most cost-effective among these approaches at reducing CO2 emissions. An alternative compliance payment mechanism in an RPS program could substantially affect renewables penetration, and the electricity price effects of the policies hinge partly on the regulatory structure of electricity markets, which varies across the country. |
| Keywords: | renewable portfolio standard, renewable energy credits, cap-and-trade, climate policy |
| JEL: | Q42 Q54 Q58 |
| Date: | 2011–01–12 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-10-53&r=env |
| By: | Don Fullerton |
| Abstract: | While prior literature has identified various effects of environmental policy, this note uses the example of a proposed carbon permit system to illustrate and discuss six different types of distributional effects: (1) higher prices of carbon-intensive products, (2) changes in relative returns to factors like labor, capital, and resources, (3) allocation of scarcity rents from a restricted number of permits, (4) distribution of the benefits from improvements in environmental quality, (5) temporary effects during the transition, and (6) capitalization of all those effects into prices of land, corporate stock, or house values. The note also discusses whether all six effects could be regressive, that is, whether carbon policy could place disproportionate burden on the poor. |
| JEL: | H23 Q58 |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:16703&r=env |
| By: | Wang, Limin; Bandyopadhyay, Sushenjit; Cosgrove-Davies, Mac; Samad, Hussain |
| Abstract: | Scaling-up adoption of renewable energy technology, such as solar home systems, to expand electricity access in developing countries can accelerate the transition to low-carbon economic development. Using a purposely collected national household survey, this study quantifies the carbon and distributional benefits of solar home system programs in Bangladesh. Three key findings are generated from the study. First, dissemination of solar home systems brings about significant carbon benefits: the total carbon emissions avoided from replacing kerosene use for lighting by solar home systems in non-electrified rural households was equivalent to about 4 percent of total annual carbon emissions in Bangladesh in 2007. This figure increases to about 15 percent if the grid-electricity generation is used as the energy baseline to estimate the carbon avoided from the installation of solar home systems. Second, solar home system subsidies in rural Bangladesh are progressive when the program is geographically targeted. Third, there exists a market potential for solar home systems in many rural areas if micro-credit schemes are made available and the propensity to install solar home systems is very responsive to income, with a 1-percent increase in per capita income increasing the probability of installing solar home systems by 12 percent, controlling for other factors. |
| Keywords: | Climate Change Mitigation and Green House Gases,Energy Production and Transportation,Access to Finance,Environment and Energy Efficiency,Energy and Environment |
| Date: | 2011–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5545&r=env |
| By: | Shardul Agrawala; Arnoldo Matus Kramer; Guillaume Prudent-Richard; Marcus Sainsbury |
| Abstract: | National governments and development agencies have invested considerable effort in recent years to develop methodologies and tools to screen their projects for the risks posed by climate change. However, these tools have largely been developed by the climate change community and their application within actual project settings remains quite limited. An alternate and complementary approach would be to examine the feasibility of incorporating consideration of climate change impacts and adaptation within existing modalities for project design, approval, and implementation. Environmental Impact Assessments (EIA) are particularly relevant in this context.<BR>Les administrations nationales et les agences de développement ont consacré un effort considérable ces dernières années à la conception de méthodologies et d’outils d’évaluation de leurs projets du point de vue des risques posés par le changement climatique. Une bonne part de ces instruments ont toutefois été élaborés au sein de la communauté des spécialistes du climat mais sont encore rarement appliqués à des projets concrets. Une autre approche, complémentaire, serait d’étudier la faisabilité de la prise en compte des incidences du changement climatique et de l’adaptation à ce changement dans les modalités existantes de conception, d’approbation et de mise en oeuvre des projets. Les études d’impact sur l’environnement (EIE) sont particulièrement intéressantes à cet égard. |
| Keywords: | climate change, adaptation, risk assessment, environmental impact assessment (EIA), changement climatique, adaptation, évalutation des risques, étude d’impact sur l’environnement (EIE) |
| JEL: | Q51 Q54 Q58 |
| Date: | 2010–08–17 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:24-en&r=env |
| By: | Gaoussou Diarra (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Sébastien Marchand (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I) |
| Abstract: | This paper analyses the relationships between environmental compliance, corruption and environmental regulations in the case of forestry. Using a Principal-Agent model, we highlight interrelationships between firm's environmental non-compliance and corruption conditioned to the efficiency of the legal and regulatory framework. Moreover, we show that environmental compliance and judicial efficiency may be complementary or substitutable depending on the level of judicial efficiency to strengthen the forest stock. After having design a new indicator of environmental compliance, we test these predictions using cross section data for 59 developing countries. The empirical results support the predictions of the model. Judicial efficiency reduces corruption and environmental non compliance which are positively correlated and conditioned to judicial efficiency. We also find empirical evidences on the substitutability and complementarity of environmental compliance and judicial efficiency to preserve the forest stock. |
| Keywords: | corruption;Environmental compliance;Forest Stock;political economy;governance |
| Date: | 2011–01–19 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00557677&r=env |
| By: | Sébastien MARCHAND (Centre d'Etudes et de Recherches sur le Développement International); Gaoussou DIARRA (Centre d'Etudes et de Recherches sur le Développement International) |
| Abstract: | This paper analyses the relationships between environmental compliance, corruption and environmental regulations in the case of forestry. Using a Principal-Agent model, we highlight interrelationships between firm's environmental non-compliance and corruption conditioned to the efficiency of the legal and regulatory framework. Moreover, we show that environmental compliance and judicial efficiency may be complementary or substitutable depending on the level of judicial efficiency to strengthen the forest stock. After having design a new indicator of environmental compliance, we test these predictions using cross section data for 59 developing countries. The empirical results support the predictions of the model. Judicial efficiency reduces corruption and environmental non compliance which are positively correlated and conditioned to judicial efficiency. We also find empirical evidences on the substitutability and complementarity of environmental compliance and judicial efficiency to preserve the forest stock. |
| Keywords: | corruption, Environmental compliance, Forest Stock, political economy, governance |
| JEL: | Q23 D73 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:cdi:wpaper:1231&r=env |
| By: | Kessides, Ioannis N.; Wade, David C. |
| Abstract: | This paper complements previous work on the economics of different energy resources by examining the growth potential of alternative electricity supply infrastructures as constrained by innate physical limits. Coal-fired generation meets the criteria of longevity (abundance of energy source) and scalability (effective capability to expand to the multi-terawatt level) which are critical for a sustainable energy supply chain, but it carries a very heavy carbon footprint. Renewables and nuclear power meet both the longevity and climate friendliness criteria. However, they vary in terms of their ability to deliver net energy at a scale needed for meeting a huge global energy demand. The low density of renewable resources for electricity generation and the current intermittency of many renewables limit their ability to achieve high rates of growth. And a significant global increase in nuclear power deployment could engender serious risks related to proliferation, safety, and waste disposal. Unlike renewable sources of energy, nuclear power is an unforgiving technology because human lapses and errors can have ecological and social impacts that are catastrophic and irreversible. The transition to a low carbon economy is likely to prove much more challenging than some optimists have claimed. |
| Keywords: | Energy Production and Transportation,Climate Change Mitigation and Green House Gases,Energy and Environment,Environment and Energy Efficiency,Energy Demand |
| Date: | 2011–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5539&r=env |
| By: | Yoshiro Tsutsui (Osaka University and University of Amsterdam) |
| Abstract: | This paper investigates the influence of climate on well-being. While previous studies have compared the well-being of people living in different regions, this study focuses on individuals in one location. It is based on the daily data of 75 students for more than 400 days. Empirical analysis reveals that well-being is maximized at 17.5 degrees Celsius. The effects of the other meteorological variables--humidity, wind speed, sunshine hours, and precipitation--are not significant. However, the influence of temperature is weak and depends on the definition of well-being, a result that may be due to the mild climate of the Osaka region in Japan. |
| Keywords: | global well-being, hedonic well-being, climate, daily web survey, Osaka region |
| JEL: | I31 Q51 Q54 |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:osk:wpaper:1101&r=env |
| By: | George, Clive; Miles, Oliver; Prud'homme, Dan |
| Abstract: | The paper provides an overview of the potential social, economic and environmental impacts of an EU-Libya FTA as gauged by the EU-Libya Sustainability Impact Assessment (SIA). The main potential benefits to both the EU and Libya from the proposed trade agreement come from closer cooperation in the energy sector rather than from the economy-wide effects of reducing trade barriers. The agreement may also have significant adverse effects that need to be taken into account. |
| Keywords: | EU; EU-Libya FTA; Libya FTA; EU FTA; Libya; Libya trade agreement; EU-Libya trade agreement; Libya trade; SIA; Sustainability Impact Assessment; impact assessment; trade impact assessment; EU SIA; Trade; SIA; Prud'homme; Dan Prud'homme; Dan Prudhomme; Prudhomme; Prud'homme |
| JEL: | O24 Q56 F17 D58 F1 |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27641&r=env |
| By: | Scarlett, Lynn (Resources for the Future); Fraas, Arthur (Resources for the Future); Morgenstern, Richard (Resources for the Future); Murphy, Timothy |
| Abstract: | This study compares and contrasts regulatory and related practices—in particular, regulatory decisionmaking, risk assessment and planning processes, inspection and compliance, and organization structure, budgets, and training—of the Minerals Management Service (MMS, now the Bureau of Ocean Energy Management, Regulation, and Enforcement, or BOEMRE) with those of the Federal Aviation Administration (FAA) and the Environmental Protection Agency (EPA). Comparing MMS practices with those of other federal agencies that also manage low-probability but high-consequence environmental risks provides a basis for identifying opportunities for enhancing regulatory capacity and safety performance in managing deepwater energy exploration and production. Our research finds important differences in processes for setting standards; peer review contribution to the rulemaking process; establishment of tolerable risk thresholds; and training of key staff. The paper concludes with several recommendations for how various EPA and FAA practices might be modified and used at BOEMRE to strengthen its regulatory and risk management processes. |
| Keywords: | Minerals Management Service, Federal Aviation Administration, Environmental Protection Agency, risk management |
| Date: | 2011–01–12 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-10-64&r=env |
| By: | Aravindakshan, Sreejith; Sherief, Aliyaru Kunju |
| Abstract: | Unscathed agrobiodiversity remaining in-situ today is found on the small-scale farms and homestead gardens of poorer and developing countries (Brookfield, 2001). The indigenous traditional farming of Muthuvan tribe as the case of Finger millet or Ragi (Eleusine coracana), a minor millet cultivated in the Western Ghats in Kerala in the Indian South is one such classic example for in-situ agrobiodiversity management, based on organic farming systems. On such fields, the use of labour intensive, traditional production techniques have persisted throughout the period of controlled state farming and the market based large-scale farming. The homestead gardens close to fringes of ‘South Western Ghats-the hotspot of biodiversity’ also play a crucial role in tribalistic context, by contributing to the rural livelihoods in time periods and locations when markets or state institutions do not. This paper attempts to analyse the opportunity costs of minor millet cultivation incurred by indigenous tribe in scheming compensations for biodiversity conservation. It further discusses possibilities to deliver a tangible and hopeful alternative towards sustainable livelihood in the backdrop of climate change. The methodology involves use of ‘Switching Regression model’ in the estimation and comprehension of opportunity costs, and further looks at its relevance in traditional farming of underutilised minor millets in the tribal homesteads and is equated in terms of indirect payment for biodiversity conservation. The analysis of results concludes the importance of creating incentives for the conservation of agrobiodiversity, especially the on-farm diversity of underutilised crops and supporting poverty alleviation, and preventing welfare losses among vulnerable communities. |
| Keywords: | agro-biodiversity; muthuvan; minor millets; opportunity cost; payment; organic agriculture; tribal homesteads; sustainable livelihoods; indigenous people; climate change |
| JEL: | Q56 Q0 O13 Q54 Q57 Q18 Q58 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:28136&r=env |
| By: | Samarasinghe, Oshadhi; Greenhalgh, Suzie |
| Abstract: | In an attempt to value soil natural capital, we use the inherent characteristics of soil and land valuation data to examine the relationship between soil characteristics and rural farmland values in the 6000ks2 Manawatu catchment in New Zealand. The study applies a hedonic pricing method to determine if the value of âcriticalâ inherent characteristics of soils are reflected in land values. We find empirical evidence that the examined characteristics of soil natural capital stock, e.g., particle size, drainage, potential rooting depth and profile available water, are in fact reflected in rural land values. |
| Keywords: | Natural capital, soil characteristics, value of soil, hedonic prices, rural land value, Agricultural and Food Policy, Community/Rural/Urban Development, Consumer/Household Economics, Crop Production/Industries, Environmental Economics and Policy, Farm Management, Land Economics/Use, |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nzar09:97158&r=env |
| By: | Seo, Misuk; Pape, Andreas Duus |
| Abstract: | The 1996 Safe Drinking Water Act Amendments require that water utilities mail drinking water quality reports to their customers annually. The public uses this information; the news of a water quality violation makes a household 21% more likely to purchase bottled water in the following year. We estimate that about 768,000 additional Americans purchase bottled water because of reported violations. We measure reports of violations with Environmental Protection Agency (EPA) data about violation reports from 1,300 water utilities, with a service population of approximately 10 million people total. We measure the consumer response using the Consumer Expenditure (CEX) survey from 2006-2008 with 10,874 households, and we match consumers to utilities geographically. |
| Keywords: | Water Quality Reports; Environmental Information; Consumer Response to Information; Bottled Water Expenditure; Consumer Expenditure Survey |
| JEL: | D12 Q53 Q25 |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:28207&r=env |
| By: | Cameron, Michael P.; Bell, Kendon |
| Abstract: | The dairy industry is a major contributor to both the New Zealand economy as a whole and to the Waikato regional economy in particular. The industry is experiencing a period of considerable change, with increases in dairy conversion, increased intensification, and increasing use of nitrogen fertilisers, each of which has an associated environmental cost. In this paper the productivity performance of the mature dairy industry in the Waikato region is investigated, using panel data at the sub-regional level from 1994 to 2007. Overall we show that, under a range of specifications, productivity growth independent of increasing land use and herd numbers has been significantly below the four percent industry target. This suggests that, if the four percent goal were to be met in the absence of significant technological progress, further increases in fertiliser use, land use, and/or farming intensity would be required. |
| Keywords: | Productivity, dairy industry, Waikato., Agricultural and Food Policy, Environmental Economics and Policy, Farm Management, Land Economics/Use, Productivity Analysis, |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nzar09:97132&r=env |
| By: | David Tobón Orozco; Carlos Andrés Vasco Correa; Blanca Gómez Olivo |
| Abstract: | This draft discusses the main instruments to mitigate environmental externalities, considering both the traditional goals of efficiency and equity and restrictions on information and technical and political feasibility. It is analyzed the program "Pico y Placa" in Medellín, a restricting vehicular mobility on the type of command and control, its efficiency and power using the theoretical results and some estimates of elasticities of demand for gasoline and vehicles in Medellin. It is recommended what are the policies most relevant to mobility and control pollution in a city as Medellín. |
| Keywords: | Externalities, restricting vehicular mobility, command and control, economic incentives. |
| JEL: | Q28 Q52 Q53 Q58 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:lde:grupom:053&r=env |
| By: | Coenen, Lars (CIRCLE, Lund University); Suurs , Roald (TNO Built Environment); van Sandick , Emma (TNO Built Environment) |
| Abstract: | To speed up the transformation to low-carbon energy systems, transition policy approaches highlight the importance of purposive experimentation with sustainable niche technologies. An important policy challenge that has followed from various ‘real’ transition experiments concerns the crucial issue of ‘upscaling’ or ‘aggregating’ the niche technologies towards broader and more widespread application in society. To address the question ‘which policy mix supports the upscaling of emergent niche technologies in a transition to sustainable energy systems?’ the paper adopts a comparative approach. Two successful cases where upscaling of emergent technology niches has taken place are contrasted with an unsuccesful fail case. The success cases entail the emergence and diffusion of bioenergy and biofuels in Sweden as well as windpower in Denmark whereas the fail case consists of biofuels in the Netherlands. |
| Keywords: | sustainability transitions; niche technologies; technological innovation systems |
| JEL: | O30 |
| Date: | 2011–01–20 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2010_017&r=env |
| By: | Leahy, Eimear; Lyons, Seán; Tol, Richard S. J. |
| Abstract: | Vegetarianism is increasing in the western world. Anecdotally, this trend can be attributed to heightened health, environmental and animal welfare concerns. In this paper we investigate the factors associated with vegetarianism among adults and children in the UK. Using the 2008 Health Survey for England, we use a logit model to assess the relationship between vegetarianism and the socioeconomic and personal characteristics of the respondents. We also analyse the factors associated with varying levels of meat consumption using an ordered logit model. This paper adds to the existing literature as it is the first paper to estimate the determinants of vegetarianism using a large dataset containing individual level consumption data. |
| Keywords: | children/Consumption/data |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp360&r=env |
| By: | Gary D. Libecap |
| Abstract: | Katharine Coman’s “Some Unsettled Problems of Irrigation,” published in March 1911 in the first issue of the American Economic Review addressed issues of water supply, rights, and organization. These same issues have relevance today 100 years later in face of growing concern about the availability of fresh water worldwide as demand grows and as supplies become more uncertain due to the potential effects of climate change. The central point of this article is that appropriative water rights and irrigation districts that emerged in the American West in the late 19th and early 20th centuries in response to aridity to facilitate agricultural water delivery, use, and trade raise the transaction costs today of water markets. These markets are vital for smooth re-allocation of water to higher-valued uses elsewhere in the economy and for flexible response to greater hydrological uncertainty. This institutional path dependence illustrates how past arrangements to meet conditions of the time constrain contemporary economic opportunities. They cannot be easily significantly modified or replaced ex post. |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:icr:wpicer:33-2010&r=env |
| By: | Lucian Cernat (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Julien Gourdon (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I) |
| Abstract: | Given the complexity of the issues surrounding the concept of sustainable tourism, the current paper tries to provide a unified methodology to assess tourism sustainability, based on a number of quantitative indicators. The proposed methodological framework (Sustainable Tourism Benchmarking Tool – STBT) will provide a number of benchmarks against which the sustainability of tourism activities in various countries can be assessed. A model development procedure is proposed: identification of the dimensions (economic, socio-ecologic, infrastructure) and indicators, method of scaling, chart representation and evaluation on three Asian countries. This application to three countries show us that a similar level of tourism activity might induce different sort of improvements to implement in the tourism activity and might have different consequences for the socio-ecological environment. The heterogeneity of developing countries exposed in the STBT is useful to detect the main problem of each country in their tourism activity. |
| Keywords: | cerdi |
| Date: | 2011–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00557121&r=env |
| By: | António Pinheiro (Universidade de Évora, Departamento de Economia); Nuno Ribeiro (Universidade de Évora, Departamento de Fitotecnia) |
| Abstract: | Fire is the biggest forest enemy in many countries, especially in those that have dry and hot climates. Fire destroys biomass and makes forest production a very risky business. Forest insurance could decrease fire risk and would contribute to make forest activities more profitable. Nowadays, in many countries, it is not easy to find companies that want to insure forests stands. The most important reasons to explain this fact are the followings. First, in many countries, forest insurance is not mandatory; so many farmers don?t make it. This increases the risk premium that insurance companies ask for those that were willing to make the insurance contract. Second, insurance companies need to have models based on desegregated and reliable data that allow them estimating the probability of fire occurrences. Finally, it is very difficult for insurer to estimate the real value of the stands (forests) because their values vary from species to species and for the same species with the age and market prices. So, it is difficult for insurer to practice fair and reasonable insurance premiums. The main objective of this paper is to present simple models that help to estimate ?fair? insurance risk premiums, contributing in this way to make forest business more appealing and sustainable. |
| Keywords: | forest fire, insurance, risk premium, forest property insurance. |
| JEL: | G22 Q23 Q54 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:evo:wpecon:1_2011&r=env |
| By: | Claudio Araujo (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Catherine Araujo Bonjean (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Jean-Louis Combes (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Pascale Combes Motel (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Eustaquio J. Reis (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I) |
| Abstract: | This paper focuses on the impact of property rights insecurity on deforestation in the Brazilian Legal Amazon. Deforestation is considered as a risk management strategy: property rights insecurity reduces the present value of forests and fosters forest conversion into agricultural and pasture lands. Moreover, deforestation is the consequence of strategic interactions between landowners and squatters. Landowners clear the forest preventively in order to assert the productive use of land and to reduce the expropriation risk. Squatters invade land plots, clear the forest and may afterwards gain official recognition with formal property titles. A particular attention is paid to the measure of land property rights insecurity in the Brazilian context. It is assumed that property rights insecurity has a multidimensional character taken into account by the number of homicides related to land conflicts and expropriation procedures. Principal component analysis allows synthesising such information. An econometric model of deforestation is estimated on a panel dataset on the 1988-2000 period and the nine states of the Brazilian Legal Amazon. The hypothesis that insecure land property rights contribute to higher rates of deforestation is not rejected when the simultaneity bias between insecure property rights and deforestation is addressed. This result questions the modality of the Brazilian land reform that considers forested areas as unproductive and thus open for expropriation procedures. |
| Keywords: | deforestation;insecure property rights;Brazilian Legal Amazon |
| Date: | 2011–01–17 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00556699&r=env |