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on Environmental Economics |
| By: | Marita Laukkanen; Céline Nauges |
| Abstract: | One quarter of the agricultural area in the European Union is registered in agrienvironmental programs. Despite the prevalence of such programs and increasing demands for environmental quality in the European Union, ex-post assessments of program benefits are rare. This study uses a structural econometric model to evaluate the impacts of agri-environmental payments provided through the Finnish Agri-Environmental Program, whose primary goal is to reduce nutrient pollution from agricultural land. Drawing on a representative sample of individual grain farms, the research quantifies the effects of agri-environmental payments on farmers? decisions on the use of agri-chemical inputs and on the allocation of land to grain production and set-aside (fallow) over the period 1996?2005. The effects of program payments are ascertained based on exogenous variation in payment rates across regions and over time. We find that the agri-environmental payments have reduced fertilizer inputs but that this impact has been modest. In terms of land allocation, the impact has been counterproductive in that the payments have slightly increased the grain area and reduced set-aside. To quantify the impact of agri-environmental payments on nutrient loading ? the environmental outcome of interest ? we then combine the predicted land allocation and fertilizer use with environmental production functions. Overall, we estimate that the payments have reduced the damage costs associated with nutrient pollution from grain farming by 11 to 12 percent. |
| Keywords: | agri-environmental programs, payments for ecosystem services, farm subsidies, structural models, panel data, policy evaluation, nutrient pollution, cost-benefit analysis |
| JEL: | Q58 Q28 Q53 Q18 H23 |
| Date: | 2012–11–04 |
| URL: | http://d.repec.org/n?u=RePEc:fer:wpaper:40&r=env |
| By: | Amnon Levy (University of Wollongong) |
| Abstract: | A rule for setting a tax on carbon emissions to limit their atmospheric stock to a predetermined level is developed for a world inhabited by uncoordinated, myopic, expected utility maximizing agents. In all locations, the mean of the marginal product of the carbon emitting input diminishes and the variance increases as climate deteriorates. The rule is illustrated for a world divided into poor countries and rich countries. The poor countries’ costs of non-compliance with the tax, in terms of per capita utility loss from diminished reputation, are negligible. The rich countries' costs of non-compliance and, consequently, inclination to pay the globally set tax can be substantial but not identical. The number of complying rich countries decreases with the tax level, but at a rate that is moderated by the range of the rich countries’ loss of per capita utility from abstinence. |
| Keywords: | Carbon Emissions; Climate Change; Uncertainty; Tax; Compliance |
| JEL: | Q52 Q54 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:uow:depec1:wp12-09&r=env |
| By: | Ying Liu (University of Wollongong); Kankesu Jayanthakumaran (University of Wollongong); Frank Neri (University of Wollongong) |
| Abstract: | Most climate scientists around the world are concerned about global warming. These concerns have resulted in calls for reductions in CO2 emissions over time. If these calls are to be heeded, an appropriate emissions accounting method must first be agreed upon by CO2 emitting countries, none of which are more important than China. This paper estimates China’s CO2 emissions in 2002 and in 2007 using firstly a production-based, and then a consumption-based, accounting method, both in aggregate and at the sectoral industry level. Our objectives are firstly to investigate the recent trends in Chinese emissions of CO2, and secondly to reveal the extent of the differences in the estimates produced by these two methods. Our estimates confirm what others have found, namely that Chinese emissions of CO2 increased substantially over this relatively short time period. Furthermore, the consumption-based method results in China being responsible for 38% fewer emissions in 2007 than would be the case with the production-based method. Problems caused by global warming will only be ameliorated if an acceptable worldwide distribution of responsibilities for emissions reduction efforts can be found. We believe that the consumption based method is more appropriate because it allocates responsibilities according to final consumption. |
| Keywords: | CO2 emissions, China, Accounting Methods |
| JEL: | Q01 Q53 Q58 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:uow:depec1:wp12-08&r=env |
| By: | Carnovale, Maria; Gibson, Matthew |
| Keywords: | Economics, Other, Environmental Economics |
| Date: | 2012–12–05 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:ucsdec:qt4j2755jq&r=env |
| By: | Ramón López; Sang Won Yoon |
| Abstract: | The standard theoretical literature has shown that environmental sustainability and positive economic growth are not incompatible as long as environmental policies are optimal. However, in showing this result earlier studies have relied on strong assumptions that may appear to charge the dice in favor of such result. Here we show that once the role of the consumption composition effect is recognized, environmentally sustainable economic growth may exist even if some of the most questionable assumptions used by the canonical models are relaxed. In particular, we show that sustainable growth is possible even if environmental and man-made factors of production are complement rather than highly substitutable as has been invariably assumed by the literature and even if technological change is entirely pollution-augmenting. |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:udc:wpaper:wp375&r=env |
| By: | Santosh Kumar, Sahu; K., Narayanan |
| Abstract: | According to the basic law of supply and demand, as the cost of energy input rises, ceteris paribus, producer prefers to employ smaller quantity of energy input and substitute cheaper inputs for more expensive energy during the production process (Schurr, 1982; Jorgenson, 1984). Hence, the question arises whether determinants of profitability of firms differ based on different types of energy consumption. In analyzing this phenomenon for Indian manufacturing industries, this study tries to find out the determinants of profitability of firms based on three energy clusters (natural gas, petroleum and coal) of Indian manufacturing industries. This study uses data from the PROWESS database provided by the Center for Monitoring Indian Economy from 2000-2008. The finding of the study suggests that capital intensity, age of the firm and MNE affiliation of firms are the common determinants of profitability for different energy clusters in Indian manufacturing industries. However, the determinants of profitability differ for variables such as energy intensity, size of firm and R&D intensity and based on the choice of primary source of energy consumption. In the debate of CDM, climate change; shifting from traditional fuel sources to recent fuel source might help in reducing CO2 emissions, specifically for developing country such as India. Fiscal policies support to industries such as value-added tax exemption for new energy conservation products, import duty reduction and exemption for energy conservation technology might help Indian manufacturing industries to increase the profitability as well as energy efficiency. |
| Keywords: | Energy; Profitability; Cluster; Indian Manufacturing Industries |
| JEL: | B23 Q4 |
| Date: | 2011–11–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:43457&r=env |
| By: | Qiang Chen (School of Economics, Shandong University) |
| Abstract: | China provides an interesting case study of civil conflict because of her long history and rich records. Using a unique dynastic panel dataset for north China during 25-1911 CE, this study finds that severe famines and dynastic age were positively correlated with peasant uprisings, whereas government disaster relief as a proxy for state capacity played a significant mitigating role. Negative climate shocks (e.g., severe drought, locust plagues) affected peasant uprisings primarily through the channel of severe famines. The effects of population density, temperature, and other climate shocks (e.g., flood, levee breaches, snow disasters, and frost) were either not robust or insignificant. |
| JEL: | N45 O1 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:shn:wpaper:2013-01&r=env |
| By: | Leisa Perch (International Policy Centre for Inclusive Growth); Gabriel Labbate (Senior Programme Officer, UN-REDD Programme/Poverty and Environment Initiative,) |
| Abstract: | Growth, Equity and Sustainability: A Declaration of Interdependence Over one billion of us live without many of the basics that the other six billion take as given. Although 28 countries have moved from low-income status to middle-income status, with Ghana and Zambia among the newest Middle Income Countries, an estimated 800 million people still live in low-income countries. Of these, half live in just five countries, three of which are in sub-Saharan Africa. In these least-developed countries (LDCs), conflict, disaster and broader human insecurity impose structural limits on efforts to move from crisis to risk reduction and from growth to sustained development. So although many millions have been lifted out of poverty in the last ten years, it is also true that more people live in chronic hunger than ever before. Significant and sustained progress will require faster and better efforts. The message of this Poverty in Focus is that, ?For Growth to be inclusive, it must be sustained and sustainable and that, for it to be sustained and sustainable, it must also be equitable.? As a contribution to the dialogue around Rio+20 and to the ongoing discussions around a post-2015 MDG Agenda, this Poverty in Focus links future development to sustainability and particularly to social sustainability. Looking beyond the critical issues of ?carbon footprints?, ?low-carbon development?,? green economy? and the economics behind saving the planet, it draws attention back to the continuing challenge of ensuring that growth and development deliver for the poor and vulnerable. In its many forms?energy poverty, lack of access to water and sanitation, malnutrition or insecure access to food, and lack of access to education and health?the scale and scope of global deprivation call current development policy and practice into question. Growth, gender, poverty and the environment can no longer be treated as loosely connected components of development. Recognizing their interdependence is at the core of improved and sustained development for all. For one thing, the continuing decline of the quantity and quality of natural resources and of ecosystem functions is likely to exacerbate the likelihood of conflict over resources, particularly water. According to UNDP?s Bureau for Crisis Prevention and Recovery, 35 countries had entered what could be designated a ?post-conflict phase? by 2008. The cost of conflict has been enormous, matching or surpassing, according to some estimates, the value of ODA received in the last 20 to 30 years in the same countries. Addressing topics such as the evolving debate on environmental and social justice and improved accounting frameworks to ?include? environmental assets and services in considerations of growth, the enclosed articles can help us go beyond lip-service to the notion of sustainability. They focus on the ?software? components of development, highlighting the need for equal attention to process and to results. Suggesting that inclusive and sustainable development will need to leverage ?social technologies? such as political innovations, true engagement and honest evaluation, they make a clear case for a strong, representative state and the complementary roles of civil society and the private sector in defining and achieving sustained and sustainable development. They underscore the role of formal and informal mechanisms in the negotiation and reconciliation of conflicting and competing interests. In view of the high expectations placed on the next year?s Rio+20 meeting, let us remind ourselves that ?social sustainability? will be built on the foundations of productive and social inclusion. Too often, the focus has fallen largely on productive inclusion, with limited effort to address the structural factors that cause and sustain exclusion and marginalization, be they related to gender, political processes, property rights for the poor, and so on. Moreover, a focus on ?sustained? development as well as sustainable development acknowledges that, for many countries, existing development gains are fragile and easily reversed. The acute challenges faced by countries in the Horn of Africa due to persistent drought, displacement, conflict and poverty are a case in point. A socially sustainable approach, say these authors, is one in which policy efforts do not shy away from the many interdependent multiple dynamics, processes and situations that affect vulnerability and predispose the poor and the vulnerable to harm from shocks and change. Growth, equity and sustainability are mutually compatible, if efforts have enough time and resources, are responsive to underlying structural causes and encourage the vigorous participation of the poor, allowing them to define their futures. What follows illuminates the complexity of inclusiveness as a development outcome and highlights bold action in and by the South. We hope that these articles serve as a source of further innovation and inspire more cooperation and the spread of knowledge within the South. Ours is an age of political convulsions, global economic shifts, inexorable climatic change and stubborn poverty. Informed and catalytic strategies are needed now more than ever before. by Olav Kjorven, Assistant Administrator and Director of the Bureau for Policy Development, UNDP |
| Keywords: | Dimensions of Inclusive Development |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:ipc:ifocus:23&r=env |
| By: | James B. Davies (University of Western Ontario); Xiaojun Shi (Renmin University of China); John Whalley (University of Western Ontario) |
| Abstract: | Global carbon pricing can yield revenues which are large enough to create significant global pro-poor redistributive opportunities. We analyze alternative multidecade growth trajectories from 2015 to 2105 for major global economies with carbon tax rates designed to stabilize emissions in the presence of both continued country growth and autonomous energy use efficiency improvement. In our central case analysis, revenues from globally internalizing carbon pricing rise to 8% and then fall to 6% of gross world product. High growth in India and China reduces global inequality and poverty strongly over time, but important incremental redistributive effects can be achieved using global carbon pricing revenues. Taking into account both between-country effects and previous literature estimates of within-country effects, a global carbon tax alone tends to be regressive in its global incidence. However, if its revenues are redistributed globally via equal per capita transfers, in our central case the Gini coefficient for world income falls by about 3% and the share of the bottom decile rises by 81% on average from 2015 to 2105. The population living in poverty falls by 16% in 2015. Going further, global poverty could be eliminated entirely by 2015 according to our calculations if one third of global carbon tax revenues were redistributed directly to the poorest individuals. |
| Keywords: | Carbon Pricing; Gini; Poverty Reduction; Millennium Development Goals |
| JEL: | O19 Q56 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:uwo:epuwoc:20127&r=env |
| By: | Roeder, Kerstin; Habla, Wolfgang |
| Abstract: | We analyze the German ecotax package in a model of overlapping generations and majority voting. The package consists of the ecotax rate and the budgetary rule which assigns a fraction of the tax revenue to the reduction of pension contributions while holding pension benefits constant. The old and the young generation have different preferences with respect to the tax rate and the use of the tax revenue. Our theoretical model as well as the calibration of our model show that the median voter s preferred tax rate may well exceed the efficient tax rate whenever his income is sufficiently high. This is the likelier the more CO2 is degraded and removed from the atmosphere. Furthermore, the median voter prefers earmarking of tax revenue to reductions in pension contributions. The latter is quite an accurate prediction of the situation in Germany where the share of tax revenue devoted to the pension scheme amounts to more than 90%. -- |
| JEL: | H23 H55 D78 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc12:62060&r=env |
| By: | P. Mathiou (Department of Agricultural Economics and Development Agricultural University of Athens, Greece "); Stelios Rozakis (Department of Agricultural Economics and Rural Development, Agricultural University of Athens, Iera Odos 75, Athens 11855, Greece); Rafal Pudelko (Department of Agrometeorology and Applied Informatics, Institute of Soil Sciences and Plant Cultivation (IUNG), State Research Institute, Czartoryskich 8, 24-100 Pulawy, Poland); A. Faber (Department of Agrometeorology and Applied Informatics, Institute of Soil Sciences and Plant Cultivation (IUNG), State Research Institute, Czartoryskich 8, 24-100 Pulawy, Poland) |
| Abstract: | Among measures to promote renewable energy the electricity feed-in tariff scheme is extensively used in many countries to meet the goals set by governments related to energy independence and mitigation of greenhouse effect. In this paper, an agricultural supply spatial model is run to estimate biomass plantations adoption by Polish farmers at the municipal level. Detailed spatial and agronomic information is used limiting potential areas to the less fertile land, focusing on certain land classes where research undertaken by IUNG has provided reliable estimates for willow and miscanthus cultivation needs and production yields. Decisions on multi-year land use for dedicated energy plantations replacing conventional annual crops such as rye and triticale are driven by discounted cash flow analysis. An appropriate mathematical model is built in order to estimate biomass for energy supply for a range of hypothetical prices offered by coal fueled power plants. Parametric optimization results are shown in supply curve form in order to determine efficient price levels. Results are illustrated also in terms of crop acreages as well as spatial distribution at the national level in NUTS5 resolution |
| Keywords: | Willow, Miscanthus, Cost analysis, Mathematical programming, Biomass Supply, Feed-in tariffs, Spatial analysis |
| JEL: | Q16 Q41 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:aua:wpaper:2012-2&r=env |
| By: | Shirokova, G.V.; Knatko, D.M.; Vega, G. |
| Abstract: | Demand by growing ownerrun SMEs for specialized management knowledge is resolved primarily through the separation of ownership and control, using top management labor market and agency contracts. Under certain environmental institutional conditions, owners of Russian SMEs face difficulties separating ownership and control. Using a dataset of 500 companies from fast growing industries in St. Petersburg and Moscow, this study analyzes how various perceived characteristics of the institutional environment influence the probability of separation of ownership and control. Executive summary is available at pp. 27. |
| Keywords: | emerging markets, separation of the ownership and control, management succession, SMEs, Russia, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:sps:wpaper:550&r=env |
| By: | Ahmad Komarulzaman (Department of Economics, Padjadjaran University); Ben Satriatna (Department of Economics, Padjadjaran University) |
| Abstract: | Clean water provision still becomes a problem faced by developing countries, including Indonesia. One of the factors contributing to this problem is limited financial capability of the government. Therefore, if the government intend to increase clean water service coverage, they should be carefully choosing the most efficient strategy. This study tries to help the government of Bandung Regency in Indonesia to increase water service coverage by examining two different alternatives in provision of clean water service, which are small scale and large scale piped system. By employing Benefit Cost Analysis (BCA) this study found that despite the cost to develop large scale piped system is higher, the benefit gained from the system is significantly far exceeded the benefit of small system. As a result, the large system produces larger net benefit than the small one. The benefit of large scale piped system mainly contributed by illness incident and time saving for collecting water. |
| Keywords: | Clean water services, large scale piped system, Bandung Regency, Indonesia |
| JEL: | D61 I38 O21 Q25 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:unp:wpaper:201303&r=env |
| By: | L. Lambertini |
| Abstract: | I investigate two versions of a differential Cournot oligopoly game with nonrenewable resource exploitation, in which each firm may either exploit its own private pool or exploit a common pool jointly with the rivals. Firms use a deterministic technology to invest in exploration activities. In both models, there emerges that (i) the individual exploration effort is higher when each firms has exclusive rights on a pool of its own, and (ii) depending on the assumptions on technology and demand, the aggregate exploration effort is either constant or increasing in the number of firms. |
| JEL: | C73 L13 Q30 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:bol:bodewp:wp859&r=env |
| By: | Gian Gaspare Fardella (Department of Agro-Forest Systems Economics of University of Palermo) |
| Abstract: | In recent years, a considerable share of investment has been devoted to both research development and use of renewable energy sources also in our country. This is apparently due to price volatility of fossil fuels and structural energetic dependence on politically unstable countries, which create high supplying insecurity. </p> <div class="wp_content"><span> <p>Read the full text below</p> </span></div> |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:mcr:jenome:wpaper00034&r=env |
| By: | Michel Beine (CREA, University of Luxembourg, IRES, CREAM and CES-Ifo); Serge Coulombe (University of Ottawa); Wessel N. Vermeulen (CREA, University of Luxembourg) |
| Abstract: | This paper looks at whether immigration can mitigate the Dutch disease effects associated with booms in natural resource sectors. We first derive predicted changes in the size of the non-tradable sector from a small general-equilibrium model `a la Obstfeld-Rogoff, supplemented by a resource income and a varying labour supply. Using data for Canadian provinces, we test for the existence of a mitigating effect of immigration in terms of an increase in the size of the non-tradable sector triggered by the positive resource shock in booming regions. We find evidence of such an effect for the aggregate inflow of migrants. Disentangling those flows by type of migrants, we find that the mitigation effect is due mostly to interprovincial migration and temporary international migration. There is no evidence of such an effect for permanent international immigration. Nevertheless, interprovincial migration also results in a spreading effect of Dutch disease from booming to non-booming provinces. |
| Keywords: | Natural Resources, Dutch Disease, Immigration, Mitigation Effect |
| JEL: | F22 O15 R11 R15 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:luc:wpaper:12-06&r=env |