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on Environmental Economics |
| By: | Zon, Adriaan van (UNU-MERIT/MGSoG, and Maastricht University); David, Paul (SIEPR, and Economics Department, Standford University, and UNU-MERIT/MGSoG) |
| Abstract: | The research reported here gives priority to understanding the inter-temporal resource allocation requirements of a program of technological changes that could halt global warming by completing the transition to a "green" (zero net CO2- emission) production regime within the possibly brief finite interval that remains before Earth's climate is driven beyond a catastrophic tipping point. This paper formulates a multi-phase, just-in-time transition model incorporating carbon-based and carbon-free technical options requiring physical embodiment in durable production facilities, and having performance attributes that are amenable to enhancement by directed R&D expenditures. Transition paths that indicate the best ordering and durations of the phases in which intangible and tangible capital formation is taking place, and capital stocks of different types are being utilized in production, or scrapped when replaced types embodying socially more efficient technologies, are obtained from optimizing solutions for each of a trio of related models that couple the global macro-economy's dynamics with the dynamics of the climate system. They describe the flows of consumption, CO2 emissions and the changing atmospheric concentration of green-house gas (which drives global warming), along with the investment dynamics required for the timely transformation of the production regime. These paths are found as the welfare-optimizing solutions of three different "stacked Hamiltonians", each corresponding to one of our trio of integrated endogenous growth models that have been calibrated comparably to emulate the basic global setting for the "transition planning" framework of dynamic integrated requirements analysis modelling (DIRAM). As the paper's introductory section explains, this framework is proposed in preference to the (IAM) approach that environmental and energy economists have made familiar in integrated assessment models of climate policies that would rely on fiscal and regulatory instruments -- but eschew any analysis of the essential technological transformations that would be required for those policies to have the intended effect. Simulation exercises with our models explore the optimized transition paths' sensitivity to parameter variations, including alternative exogenous specifications of the location of a pair of successive climate "tipping points": the first of these initiates higher expected rates of damage to productive capacity by extreme weather events driven by the rising temperature of the Earth's surface; whereas the second, far more serious "climate catastrophe" tipping point occurs at a still higher temperature (corresponding to a higher atmospheric concentration of CO2). In effect, that sets the point before which the transition to a carbon-free global production regime must have been completed in order to secure the possibility of future sustainable development and continued global economic growth. |
| Keywords: | global warming, tipping point, catastrophic climate instability, extreme weather-related damages, R&D based technical change, embodied technical change, optimal sequencing, multi-phase optimal control, sustainable endogenous growth |
| JEL: | Q54 Q55 O31 O32 O33 O41 O44 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2013009&r=env |
| By: | Christian Lininger (Wegener Center for Climate and Global Change, University of Graz, Austria) |
| Abstract: | As an agreement on an international climate treaty appears out of sight in the short run, many countries rely on unilateral greenhouse gas abatement strategies. The reach of such unilateral policies can be extended beyond the borders of the abating country by a switch to a consumption-based policy orientation. Such a policy does not target the emissions discharged on the territory of the country that abates, but the emissions embodied in the goods it consumes. If industrialized countries adopt this approach, they can bring the large and increasing amount of emissions embodied in imports from emerging economies into the scope of the policy. The policy switch could be implemented by means of border carbon adjustments; according to theoretic arguments such adjustments can improve the efficiency of unilateral policies. This paper develops a 2-region, 5-good analytical partial-equilibrium model to study the effects of a switch of the policy base. We especially focus on changes in production technology triggered by the policy. We find that a policy targeting consumption – when using a leakage definition appropriate for consumption-based approaches – does not cause leakage through the non-energy market leakage channel. In addition, the question whether a consumption-based policy is environmentally more effective is decided through policy transmission in non-energy markets, but not in energy markets. Still, despite the many arguments in favour of consumption-based approaches, we find that none of these arguments per se suffices to make a consumption-based policy the environmentally more effective or the more cost-effective option. Whether it is indeed more effective depends on (i) demand and production parameters and (ii) the precise design of the border tax (or any other appropriate policy instrument). In particular, the availability of “green” technology in emerging economies influences the results. Additionally, a switch of the policy base may also cause a substantial redistribution of the costs of the policy between abating and non-abating countries. |
| Keywords: | Unilateral climate policy, consumption-based accounting, carbon leakage, border carbon adjustments, trade and environment |
| JEL: | Q54 Q56 F18 H23 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:grz:wpaper:2013-03&r=env |
| By: | Niko Jaakkola |
| Abstract: | Mitigating climate change by carbon capture and storage (CCS) will require vast infrastructure investments. These investments include pipeline networks for transporting carbon dioxide (CO2) from industrial sites ('sources') to the storage sites ('sinks'). This paper considers the decentralised formation of trunk-line networks when geological storage space is exhaustible and demand is increasing. Monopolistic control of an exhaustible resource may lead to overinvestment and/or excessively early investment, as these allow the monopolist to increase her market power. The model is applied to CCS pipeline network formation in northwestern Europe. The features identified above are found to play a minor role. Should storage capacity be effectively inexhaustible, underinvestment due to the inability of the monopolist to capture the entire social surplus is likely to have substantial welfare impacts. Multilateral bargaining to coordinate international CCS policies is particularly important if storage capacity is plentiful. |
| Keywords: | carbon capture and storage, exhaustible resources, network formation, spatial networks |
| JEL: | L50 Q31 Q58 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:098&r=env |
| By: | Hiroshi Danbara (Graduate School of Economics, Keio University) |
| Abstract: | In this paper, we introduce the environmental externality into the Diamond (1965) model. The environmental externality affects on the production negatively. We define a socially optimal allocation and a competitive equilibrium, and obtain the first-order necessary conditions. In competitive equilibrium, both consumers and firms have no incentives to maintain the environment, hence competitive equilibrium allocation can not be socially optimal. Therefore we propose a tax scheme. Our model requires two types of taxes in order to achieve a social optimum. |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:kei:dpaper:2012-045&r=env |
| By: | Niko Jaakkola |
| Abstract: | This paper considers competition between an oil exporter depleting and selling an exhaustible resource, and an oil importer able to gradually lower the cost of substitutes. R&D into clean fuels begins before the substitutes are competitive, in order to reduce overall development costs. The substitute constrains the oil exporter's market power: after an initial Hotelling-type stage, oil pricing becomes constrained by the ever-cheaper substitute technology. Suppy is thus non-monotonic, initially falling, then forced up by competition from substitute. Climate change slows down substitute development: rapid R&D forces the exporter to extract oil faster, aggravating near-term environmental impacts. If oil extraction becomes more expensive as supplies are depleted, the importer switches into clean fuels once these price oil out of the market; technological development will eventually be hastened to leave more of the oil locked underground. Novel numerical methods for solving PDEs are introduced into a differential game context. |
| Keywords: | exhaustible resources, oil, alternative fuels, limit pricing, climate change |
| JEL: | D42 O32 Q31 Q40 Q54 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:099&r=env |
| By: | Taylor, Richard D.; Bangsund, Dean A.; Hodur, Nancy M. |
| Keywords: | Environmental Economics and Policy, Land Economics/Use, Public Economics, |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nddaae:145739&r=env |
| By: | Liam Byrnes (Department of Economics, University of Queensland); Colin Brown (School of Agriculture and Food Sciences); John Foster (Department of Economics, University of Queensland); Liam Wagner (Department of Economics, University of Queensland) |
| Abstract: | Australia’s renewable energy policy has taken significant steps towards encouraging the deployment of lower carbon emissions energy generation. Effective policy and regulatory frameworks are paramount to incentivising the deployment of renewable energy to achieve long term reductions in carbon emissions. However significant policy barriers still exist at the federal and state levels, which have reduced the effectiveness of a concerted national effort to deploy renewables. The current policy landscape has largely favoured mature technologies which present the lowest investment risk at the expense of emerging options which may present greater efficiency and emissions reduction gains. The lack of support for emerging technologies delays their effective deployment and the accumulation of highly skilled human capital, until the medium to long term. This paper outlines the key policy frameworks, incentives and regulatory environment which encompasses the renewable energy sector, and presents a critical analysis of the barriers faced by the industry. |
| Keywords: | Australia; Renewable Energy; Energy Policy |
| JEL: | Q42 Q28 Q50 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uqeemg:2-2013&r=env |
| By: | Andrea Beltramello; Linda Haie-Fayle; Dirk Pilat |
| Abstract: | New business models can make an important contribution to the transition to green growth. While some new business models involve large firms, others are small start-up firms that seek to exploit technological or commercial opportunities that have been neglected or not yet explored by more established firms. New firms tend to engage in more radical innovation than existing firms, and scaling up new business models can therefore help reduce environmental pollution, optimise the use of natural resources, increase productivity and energy efficiency, and provide a new source of economic growth. Although the market for green goods and services is growing, the development of new business models is affected by a range of barriers, many of which can be addressed by well-designed policies. |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envddd:2013/1-en&r=env |
| By: | Mariam Camarero (Universidad Jaume I); Juana Castillo Giménez (Universidad de Valencia); Andrés J. Picazo-Tadeo (Universidad de Valencia); Cecilio Tamarit (Universidad de Valencia) |
| Abstract: | Eco-efficiency refers to the ability to produce more goods and services with less impact on the environment and less consumption of natural resources. This issue has become a matter of concern that is receiving increasing attention by politicians, scientists and academics. Furthermore, greenhouse gases emitted as a result of production processes have a heavy impact in the environment and also are the foremost responsible of global warming and climate change. This paper assesses convergence in eco-efficiency from greenhouse gas emissions in the European Union (EU). Eco-efficiency is assessed at both country and greenhouse-gas-specific levels using Data Envelopment Analysis techniques and directional distance functions, as recently proposed by Picazo-Tadeo et al. (2012). Then, convergence is evaluated using the Phillips and Sul (2007) approach that allows testing for the existence of convergence groups. Although the results point to the existence of different convergence clubs depending on the specific pollutant considered, they signal the existence of, at least, four clear groups of countries. The first two groups are conformed of core EU high-income countries (Benelux, Germany, Italy, Austria, the United Kingdom and Scandinavian countries). A third club is made up of peripheral countries (Spain, Ireland, Portugal, Greece) together with some Eastern countries (Latvia, Slovenia) and the rest of clubs consists of groups containing Eastern European countries. |
| Keywords: | Eco-efficiency; convergence; clubs; greenhouse gases emissions; European Union; directional distance functions; Data Envelopment Analysis |
| JEL: | C15 C22 C61 F15 Q56 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:eec:wpaper:1309&r=env |
| By: | Singh, Krishna M.; Singh, R.K.P.; Meena, M.S.; Kumar, Abhay |
| Abstract: | Abstract: Water is essential for human survival but water-related illnesses are the most common health threat in the developing world. An estimated 25 000 people die every day as a result of water-related diseases Human existence depends on water. Water interacts with solar energy to determine climate and it transforms and transports the physical and chemical substances necessary for all life on earth. Competition among agriculture, industry and cities for limited water supplies is already constraining development efforts in many countries including India. As populations expand and economies grow, the competition for limited supplies is most likely to intensify, resulting in potential conflict situation among water users in days to come. Despite shortages of water, its misuse is widespread, be it in small communities or large cities, farmers or industries, developing countries or industrialized economies every where the mismanagement of water resources is evident. Surface water quality is deteriorating in key basins from urban and industrial wastes. At present, 2.4 billion people depend on irrigated agriculture for jobs, food and income (some 55 percent of all wheat and rice output is irrigated). Over the next 30 years, an estimated 80 percent of the additional food supplies required to feed the world will depend on irrigation. Ministry of Water Resources, Government of India, in January 2012, released a draft National Water Policy for the consideration and opinion of state governments and other stakeholders. The need for a holistic national policy has its genesis in the changing patterns of water use across India – both personal and industrial use. This includes the imperatives of providing both clean drinking water and adequate resources for irrigation; the move to look at renewable sources of energy like hydro power; and natural disaster management and rehabilitation following devastating floods and drought. The policy also seeks to offer economic incentives and penalties to reduce pollution and wastage. For reversing the usual approach of projecting a future demand and bringing about a supply-side response to meet that demand, we must start from the fact that the availability of fresh water in nature is finite, and learn to manage our water needs within that availability. This means a restraint on the growth of 'demand' for water (other than basic needs) which will be difficult and will involve painful adjustments; but this has become inevitable. So, to have a more equitable and inclusive water resources management, the primacy has to shift from large, centralized, capital-intensive 'water resource development' (WRD) projects with big dams and reservoirs and canal systems, to small, decentralized, local, community-led, water-harvesting and watershed-development programmes, with the big projects being regarded as projects of the last resort; and the exploitation of groundwater will have to be severely restrained in the interest of resource-conservation as well as equity. |
| Keywords: | Water Policy, India, Agriculture |
| JEL: | Q0 Q01 Q1 Q18 |
| Date: | 2013–02–14 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:45230&r=env |
| By: | Joshua Elliott; Don Fullerton |
| Abstract: | One country that tries to reduce greenhouse gas emissions may fear that other countries get a competitive advantage and increase emissions (“leakage”). Estimates from computable general equilibrium (CGE) models such as Elliott et al (2010a,b) indicate that 15% to 25% of abatement might be offset by leakage. Yet the Fullerton et al (2012) analytical general equilibrium model shows an offsetting term with negative leakage. To derive analytical expressions, their model is quite simple, with only one good from each country or sector, a fixed stock of capital, competitive markets, and many identical consumers that purchase both goods. Their model is not intended to be realistic, but only to demonstrate the potential for negative leakage. Most CGE models do not allow for negative leakage. In this paper, we use a full CGE model with many countries and many goods to measure effects in a way that allows for negative leakage. We vary elasticities of substitution and confirm the analytical model’s prediction that negative leakage depends on the ability of consumers to substitute into the untaxed good and the ability of firms to substitute from carbon emissions into labor or capital. |
| JEL: | H23 Q56 Q58 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:18897&r=env |
| By: | Ariane Manuela AMIN (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Johanna Choumert (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I) |
| Abstract: | A better understanding of the relationship between economic development and biodiversity loss is of great relevance, given the current rapid extinction of species along with challenges born from the context of economic development in poor countries. The purpose of the current study is to provide a sound analysis, within the framework of an Environmental Kuznets Curve, of the relationship between economic development and pressure on biodiversity. Drawing on the most up-to-date data on threatened species from 48 sub-Saharan African countries, we used Maximum-likelihood and generalized spatial two-stage least-squares estimators to account for spatial-autoregressiveness in the dependent variable, as well as in the explanatory variables and in the disturbances of the models. We find evidence that supports an inverted U-shaped relationship between development and biodiversity imperilment, measured as the percent of threatened bird species. The results also reveal some species-level differences in the biodiversity-development relationship, since the Environmental Kuznets Curve hypothesis doesn't hold for mammals. This analysis contributes to the literature by partially challenging the paradigm of a strictly negative relationship between biodiversity and development in a developing countries context. |
| Keywords: | biodiversity;species imperilment;Spatial econometrics;Cliff-Ord model;spatial Durbin model |
| Date: | 2013–03–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00799175&r=env |
| By: | Aleksandar Zaklan |
| Abstract: | The creation of the EU's Emission Trading Scheme (EU ETS) has turned the right to emit CO2 into a positively priced intermediate good for the affected firms. Firms thus face the decision whether to source compliance with the EU ETS within their boundaries or to acquire it through the permit trade. However, a combination of internal abatement, free permit allocation and exibility to shift the use of their allocation across time creates opportunities to achieve compliance with the EU ETS without entering the permit trade. This paper aims to identify firm-level determinants of participation in and the extent of the permit trade while recognizing the possibility of zero trade flows leading to selection bias if unaccounted-for. We construct a firm-level dataset incorporating transaction-level information from both EU ETS operator and person holding accounts, thus representing the entire system-wide permit trade by CO2 emitters. We cover the supply and demand sides of the permit trade, both inter- firm and intra-firm, and account for a wide set of firm-level characteristics using firms' balance sheet information. A detailed descriptive analysis documents salient features of the firm-level permit trade. We then jointly model firms' participation and amount decisions while allowing for possible self-selection into trading. Our results suggest that participation in the permit trade is driven by a combination of firm-specific factors existing independently of the EU ETS, such as size, sector and ownership structure, and market-specific characteristics resulting from the firms' inclusion in the EU ETS, such as the value of the firms' free permit endowment and their relative allowance position. We find that amounts traded are mostly driven by market-specific factors. In contrast to the literature on the firm-level determinants of the general goods trade we do not find self-selection into trading. |
| Keywords: | EU ETS, carbon emission permits, firm-level trade, inter-firm trade, intra-firm trade |
| JEL: | F14 F18 Q54 C34 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1275&r=env |
| By: | Franziska Holz; Philipp M. Richter; Ruud Egging |
| Abstract: | In this paper, we use the Global Gas Model to analyze the perspectives and infrastructure needs of the European natural gas market until 2050. Three pathways of natural gas consumption in a future low-carbon energy system in Europe are envisaged: i) a decreasing natural gas consumption, along the results of the PRIMES model for the EMF decarbonization scenarios; ii) a moderate increase of natural gas consumption, along the lines of the IEA (2012) World Energy Outlook's New Policy Scenario; and iii) a temporary increase of natural gas use as a bridge technology, followed by a strong decrease after 2030. Our results show that import infrastructure and intra-European transit capacity currently in place or under construction are largely sufficient to accommodate the import needs of the EMF decarbonization scenarios, despite the reduction of domestic production and the increase of import dependency. However, due to strong demand in Asia which draws LNG and imports from Russia, Europe has to increasingly rely on pipeline exports from Africa and the Caspian region from where new pipelines are built. Moreover, pipeline investments open up new import and transit paths, including reverse flow capacity, which improves the diversification of supplies. In the high gas consumption scenario similar pipeline links are realized-though on a larger scale, doubling the costs of infrastructure expansion. In the bridge technology scenario, the utilization rates of (idle) LNG import capacity can be increased for the short period of temporary strong natural gas demand. |
| Keywords: | natural gas, climate change, infrastructure, equilibrium modeling |
| JEL: | Q31 Q47 Q54 C61 D43 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1273&r=env |
| By: | Gonzalez-Duque, Jose Antonio (School of Engineering of Huelva); Panagopoulos, Thomas (Research Centre for Spatial and Organizational Dynamics) |
| Abstract: | Modern cities have to reconcile the needs of the citizens for green areas considering the evolutionary trends of the city, especially in terms of growth and the required transformation in modern times. The present study attempts to analyze and evaluate the amount and distribution of the existing urban green space and the requirements of those green areas by the public. The green infrastructure of the city of Faro was evaluated with three methods: landscape assessment using modules, spatial assessment using GIS and social assessment using an urban population survey. This research provided indicators and thresholds to be included by policy makers in local regulations about green infrastructure of the city of Faro. |
| Keywords: | Cityscape; Urban Green Network; Evaluation of Green Areas; Urban Forestry |
| JEL: | Q28 Z13 |
| Date: | 2013–03–19 |
| URL: | http://d.repec.org/n?u=RePEc:ris:cieodp:2013_008&r=env |
| By: | David Wheeler, Dan Hammer, and Robin Kraft |
| Abstract: | This paper updates Working Paper 294, “FCPR—Forest Conservation Performance Rating for the Pan-Tropics.” Forest Conservation Performance Rating (fCPR) is a system of color-coded ratings for tropical forest conservation performance that can be implemented for local areas, countries, regions, and the entire pan-tropics. The ratings reward tropical forest conservation in three dimensions: (1) Progress toward elimination of tropical forest clearing by 2050; (2) progress toward achieving more ambitious REDD+ goals; and (3) achieving an immediate reduction in forest clearing. We assign green ratings to areas that meet condition (2); yellow to areas that meet (1) only; dark red to areas that fail both conditions, with forest clearing still increasing; and light red to areas that fail both conditions, but with declining forest clearing. This paper introduces quarterly conservation performance ratings for 56 tropical forest countries, as well as 781 of their states and provinces that contain tropical forests. We also combine the fCPR country ratings to produce ratings for major regions and the entire pan- tropics. Overall, we find that conservation performance has deteriorated significantly since 2005 at the global and regional levels. Some gains were made at the height of the global economic crisis, but they have proven to be temporary. Since 2010, forest clearing has exhibited rapid growth in most of tropical Asia, Latin America and Africa. |
| Keywords: | forests, conservation, satellite imagery |
| JEL: | Q20 Q23 Q27 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:cgd:wpaper:317&r=env |
| By: | Gary Clyde Hufbauer (Peterson Institute for International Economics); Allie E. Bagnall (Peterson Institute for International Economics); Julia Muir (Peterson Institute for International Economics) |
| Abstract: | Prohibitions or restrictions on US exports of liquefied natural gas (LNG) are a bad idea. LNG exports will deliver economic benefits to the US economy. The US Department of Energy should approve pending LNG export applications for projects at an advanced planning stage, in conjunction with appropriate regulation to limit environmental dangers from wells to ports. Three strong considerations support this recommendation: (1) The United States regularly opposes export restraints on natural resources by other countries; (2) contrary action by the United States would violate World Trade Organization rules and lead foreign nations to ignore the rules as well; and (3) LNG export restrictions would contradict the Obama administration’s stated goal of growing US exports. |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:iie:pbrief:pb13-6&r=env |
| By: | Joëlle Noailly; Roger Smeets |
| Abstract: | This paper investigates the determinants of directed technical change in the electricity generation sector. We use firm-level data on patents filed in renewable (REN) and fossil fuel (FF) technologies by about 7,000 European firms over the period 1978-2006. We separately study specialized firms, that innovate in only one type of technology during the sample period, and mixed firms, that innovate in both technologies. We find that for specialized firms the main drivers of innovation are fossil-fuel prices, market size, and firms' past knowledge stocks. Also, prices and market size drive the entry of new REN firms into innovation. By contrast, we find that innovation by mixed firms is mainly driven by strong path-dependencies since for these firms past knowledge stock is the major driver of the direction of innovation. These results imply that generic environmental policies that affect prices and energy demand are mainly effective in directing innovation by small specialized firms. In order to direct innovation efforts of large mixed corporations with a long history of FF innovation, targeted R&D policies are likely to be more effective. |
| JEL: | Q4 Q55 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:cpb:discus:237&r=env |
| By: | Roberto Guerrero Compean |
| Abstract: | Using data for all 2,454 municipalities of Mexico for the period 1980-2010, this paper analyzes the relationship between exposure to extreme temperatures and precipitation and death, as well as the relationship between severe weather and agricultural income and crop production in the country. It is found that extreme heat increases mortality, while the health effect of extreme cold is generally trivial. Precipitation extremes seem to affect the agricultural system, but their impact on mortality is ambiguous. More specifically, exchanging one day with a temperature of 16-18C for one day with temperatures higher than 30C increases the crude mortality rate by 0. 15 percentage points, a result robust to several model specifications. It is also found that the extreme heat effect on death is significantly more acute in rural regions, leading to increases of up to 0. 2 percentage points vis-‡-vis a 0. 07-point increase in urban areas. The timing of climate extremes is relevant: if a weather shock takes place during the agricultural growing season, the effects on mortality and agricultural output, productivity, prices, and crop yields are large and significant, but not so if such shocks occur during the non-growing season. |
| JEL: | I12 Q12 Q51 Q54 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:idb:wpaper:idb-wp-391&r=env |
| By: | Charles F Mason |
| Abstract: | An addressing climate change becomes a high priority it seems likely that there will be a surge in interest in deploying nuclear power. Other fuel bases are too dirty (coal), too expensive (oil, natural gas) or too speculative (solar, wind) to completely supply the energy needs of the global economy. To the extent that the global society does in fact choose to expand nuclear power there will be a need for additional production. That increase in demand for nuclear power will inevitably lead to an increase in demand for uranium. While some of the increased demand for uranium will be satisfied by expanding production from existing deposits, there will undoubtedly be pressure to find and develop new deposits, perhaps quite rapidly. Looking forward, it is important that policies be put in place that encourage an optimal allocation of future resourcs towards exploration. In particular, I argue there is a valid concern that privately optial levels of industrial activity wilol fail to fully capture all potential social gains; these sub-optimal exploration levels are linked to a departure between the private and social values of exploration information. |
| Keywords: | Uranium and nuclear power, climate change, uranium, public policy |
| JEL: | E21 E62 F43 H63 O11 Q33 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:104&r=env |
| By: | Xavier, António (University of Algarve); Martins, Maria de Belém (University of Algarve) |
| Abstract: | The following paper presents a detailed insight about the situation of the forest management in the diversity within the Mediterranean Forests, and their response to different problems, in order to allow the development and application of a forest management model. Therefore, a survey was carried out in several partners’ areas of the PROTECT project (An Integrated European Model to Protect MEDiterranean Forests from Fire). The results provided a comparative analysis between different areas located in the Mediterranean Basin, and the analysis shows that there are several management systems that may be improved with experiences from other countries. Also, there are some common problems which need solutions in the different areas, namely forest fires. This general information also provided a good background for carefully applying and adapting different forests’ management models, both ecological and economically sustainable, in the PROTECT partners, where the problems and agents to be considered are different, giving conditions for the adaptation and development of a common model. |
| Keywords: | Mediterranean Forests; Forest Management; Fire Prevention; Forest Sustainability |
| JEL: | Q28 Z13 |
| Date: | 2013–03–19 |
| URL: | http://d.repec.org/n?u=RePEc:ris:cieodp:2013_011&r=env |
| By: | Roula Inglesi-Lotz (Department of Economics, University of Pretoria, South Africa) |
| Abstract: | Internationally, the importance of renewable energy in the energy mix has been increasingly appreciated. The advantages of the renewable energy usage for the world’s energy security and the environment are indisputable and much discussed in the literature. However, its effects on the economic welfare of the countries are yet to be examined fully and described properly. The purpose of this paper is to estimate the impact of the renewable energy consumption to economic welfare by employing panel data techniques. The results show that the influence of renewable energy consumption or its share to the total energy mix to economic growth is positive and statistically significant. From a policy point of view, promoting renewable energies bears benefits not only for the environment but also for the economic conditions of the countries. |
| Keywords: | Renewable energy, economic welfare, OECD countries, panel data analysis |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:201315&r=env |
| By: | Torfinn Harding; Anthony J Venables |
| Abstract: | Foreign exchange windfalls such as those from natural resource revenues change non-resource exports, imports, and the capital account. We study the balance between these responses and, using data on 41 resource exporters for 1970-2006, show that the response to a dollar of resource revenue is, approximately, to decrease non-resource exports by 75 cents and increase imports by 25 cents, implying a negligible effect on foreign saving. The negative per dollar impact on exports is larger for countries which have good institutions and higher income levels. These countries have a higher share of manufacturing in their non-resource exports, and we show that manufactures are more susceptible than other products to being crowded out by resource exports. |
| Keywords: | natural resources, Dutch disease, resource curse, trade, exports, imports |
| JEL: | E21 E62 F43 H63 O11 Q33 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:103&r=env |
| By: | Ohad Raveh |
| Abstract: | Do reduced costs of factor mobility mitigate Dutch Disease effects, to the extent that they are reversed? The case of federations provides an indication they do. We observe Resource Blessing effects at the federal-state level (within federations) yet rather Resource Curse ones at the federal level (between federations), and argue the difference in outcomes stems from the difference in factor mobility costs. Through a two-region tax competition model we show that with sufficiently low factor mobility costs a resourceboom triggers an Alberta Effect –where resource abundant regions exploit the fiscal advantage, provided by resource rents, to compete more aggressively in the inter-regionalcompetition over capital, and as a result attract vast amounts of capital– that mitigates, and possibly reverses, Dutch Disease symptoms, so that Resource Curse effects do not apply. Thus, this paper emphasizes the significance of the mitigating role of factor mobility in Dutch Disease theory, and presents a novel mechanism (Alberta Effect) through which this mitigation, and possible reversion, process occurs. The paper concludes with empirical evidence for the main implications of the model. |
| Keywords: | Natural Resources, Factor Mobility, Dutch Disease, Resource Curse, Tax Competition |
| JEL: | O13 O18 O57 Q33 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:100&r=env |
| By: | Karanikola, Paraskevi (Democritus University of Thrace); Tampakis, Stilianos (Democritus University of Thrace); Manolas, Evangelos (Democritus University of Thrace); Tsantopoulos, Georgios (Democritus University of Thrace) |
| Abstract: | The forest fires which occurred in the prefecture of Ilia, Greece, in August 2007 resulted in significant losses in forest lands, property and human lives. The citizens behaved as simple spectators of the disaster. Although they could have reacted, they did nothing. The citizens, however, declare that they know what actions they need to take in case of fire. Their information regarding forest fires mainly comes from television and radio, family and friends, newspapers and magazines and education. Indeed, it seems that through interpersonal channels of communication better results are achieved. In confronting forest fires, knowledge alone is not sufficient. In order to effectively confront forest fires, the local population also needs to be trained and organized in a voluntary system of confrontation. |
| Keywords: | Forest Fire; Ilia 2007; View of Citizen; Citizen Participation; Greece |
| JEL: | Q28 Z13 |
| Date: | 2013–03–19 |
| URL: | http://d.repec.org/n?u=RePEc:ris:cieodp:2013_009&r=env |
| By: | Panagopoulos, Thomas (Research Centre for Spatial and Organizational Dynamics) |
| Abstract: | The adverse ecological conditions at the lignite mines of Ptolemaida make the landscape reclamation difficult. The naturally established vegetation and soil properties were studied prior to reclamation. Various forest species were planted to assess the afforestation potential. The natural vegetation was heterogeneous but can be used for the analysis of the site. The soil of the spoil heaps was heterogeneous with unfavourable physicochemical properties. Surface soil temperature was still 24ºC higher in bare soil than in soil covered with vegetation. The most successful species of the afforestation trial were Robinia pseudoacacia and Cedrus atlantica. Covering of fly ash spoils with topsoil presented poor results, while sewage sludge gave a favorable amelioration response in areas with high fly ash content. Topsoil from older stands was the suggested method to establish Robinia pseudoacacia. Reclamation success was dependent on appropriate planning; thus, the new landscape had to be designed in harmony with the surrounding landscape before the start of the mining activity. |
| Keywords: | Landscape Reclamation; Mining Industry; Afforestation; Greece |
| JEL: | Q01 Q15 Q26 |
| Date: | 2013–03–19 |
| URL: | http://d.repec.org/n?u=RePEc:ris:cieodp:2013_010&r=env |
| By: | Aurora García-Gallego (LEE & Department of Economics, Universitat Jaume I, Castellón, Spain); Nikolaos Georgantzis (GLOBE & Economics Department, University of Granada, Spain; LEE & Economics Department, Universitat Jaume I, Castellón-Spain); Gianandrea Staffiero (Center for Research in Economics and Health (CRES)); Tarek Jaber-López (LEE & Department of Economics, Universitat Jaume I, Castellón, Spain) |
| Abstract: | We analyze the effect of imposing a charge for the individual appropriation of common resources. In our design, withdrawing the maximum amount is the dominant strategy for every player, but the resulting equilibrium is socially inefficient. We find that the presence of a price, small enough to leave intact the trade-off between individual incentives and collective welfare, is not effective in reducing appropriation among players who have previously played without it. On one hand, the upward trend in the average extraction of common funds continues after the introduction of a price. On the other hand, the presence of a price does decrease withdrawals, in comparison with a baseline treatment without any charge, as long as it is imposed from the outset. Our design sheds light on the conditions for the effectiveness of co-payment in curbing the over-consumption of public resources, most notably in the realm of healthcare. |
| Keywords: | Common-Pool Resources, Co-Payment, Public Goods, Consumer Choice |
| JEL: | C91 C92 H41 I11 I18 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:jau:wpaper:2013/03&r=env |