nep-env New Economics Papers
on Environmental Economics
Issue of 2013‒04‒13
forty-five papers chosen by
Francisco S.Ramos
Federal University of Pernambuco

  1. Soil Conservation, Productivity and Environmental Quality (Power Point) By Cox, Craig
  2. Thriving Forests. Essential Resources. A Strong Community. (Power Point) By Goergen, Michael
  3. Brown Backstops Versus the Green Paradox By Thomas Michielsen
  4. What Forest Restoration Means for Agriculture and Communities (Power Point) By Covington, William Wallace
  5. Drainage Water Management (Power Point) By Frankenberger, Jane
  6. Agricultural Landscapes: Conservation and Wildlife (Power Point) By Allen, Art
  7. Incidence and Environmental Effects of Distortionary Subsidies By Heutel, Garth; Kelly, David L.
  8. Buffers, Filters, and Wetlands to Expand Sustainable Cultivation (Power Point) By Tomer, Mark D.
  9. Cap-and-Trade Climate Policy, Free Allowances, and Price-Regulated Firms By Bruno Lanz; Sebastian Rausch
  10. Soil Health and Biological Primers Make Farming Profitable (Power Point) By Brandt, David
  11. Soil Testing for Soil Health (Power Point) By Haney, Rick
  12. Value for Money in Environmental Policy and Environmental Economics By Pannell, David J.
  13. West African agriculture and climate change: A comprehensive analysis By Jalloh, Abdulai; Nelson, Gerald C.; Thomas, Timothy S.; Zougmoré, Robert; Roy-Macauley, Harold
  14. Software uncertainty in integrated environmental modelling: the role of semantics and open science By de Rigo, Daniele
  15. New Automobile Regulations: Double the Fuel Economy, Half the CO2 Emissions, and Even Automakers Like It By Lutsey, Nic
  16. The Transition from the Neoclassical Growth Model to Ecology By Schlauch, Michael; Palmisano, Gaia
  17. The impact of financial development, income, energy and trade on carbon emissions: Evidence from the Indian economy By Mohamed Amine Boutabba
  18. Livestock management at northern latitudes. Potential economic effects of climate change in sheep farming By Anne Borge Johannesen; Anders Skonhoft; Anders Nielsen
  19. You'd better bet on the ETS By Georg Zachmann
  20. The sources of preference heterogeneity for nature restoration scenarios By De Valck, Jeremy; Vlaeminck, Pieter; Liekens, Inge; Aertsens, Joris; Chen, Wendy; Vranken, Liesbet
  21. Rural Households’ Demand for Frankincense Forest Conservation in Tigray: A Continent Valuation Analysis By Tilahun, Mesfin; Vranken, Liesbet; Muys, Bart; Deckers, Jozef A.; Gebregziabher, Kidanemariam; Gebrehiwot, Kindeya; Bauer, Hans; Mathijs, Erik
  22. Does Supporting Passenger Railways Reduce Road Traffic Externalities? By Lalive, Rafael; Luechinger, Simon; Schmutzler, Armin
  23. Trade, Transboundary Pollution and Market Size By Forslid, Rikard; Okubo, Toshihiro; Sanctuary, Mark
  24. Manejo ambiental en Seaflower, Reserva de Biosfera en el Archipiélago de San Andrés, Providencia y Santa Catalina By Andrés Sánchez Jabba
  25. Endogenous Market Power in an Emissions Trading Scheme with Auctioning By Corina Haita
  26. Social Costs of Jobs Lost Due to Environmental Regulations By Timothy J. Bartik
  27. On the comparative advantage of tradable emission permits in a setting of uncertain abatement costs and market power: A case against the invariably pessimistic view By Heuson, Clemens
  28. Back to the Future of Green Powered Economies By M. Scott Taylor; Juan Moreno Cruz
  29. Environment, Health, and Human Capital By Joshua Graff Zivin; Matthew Neidell
  30. How are farmers adapting to climate change in Vietnam?: Endogeneity and sample selection in a rice yield model By Yu, Bingxin; Zhu, Tingju; Breisinger, Clemens; Manh Hai, Nguyen
  31. DO HOUSING PRICES REFLECT ENVIRONMENTAL HEALTH RISKS? EVIDENCE FROM MORE THAN 1600 TOXIC PLANT OPENINGS AND CLOSINGS By Janet Currie; Lucas Davis; Michael Greenstone; Reed Walker
  32. The transformative effect of unscheduled generation by solar PV and wind generation on net electricity demand By Bell, William Paul; Wild, Phillip; Foster, John
  33. Regulatory and Political Climate of Biotechnology in the EU (Power Point) By Cullman, Constance
  34. Crop Adaption in a Changing Climate and Biotechnology's Role: Drought Tolerant Varieties (Power Point) By Massey, Adrianne
  35. The implications of natural resource exports for non-resource trade By Harding, Torfinn; Venables, Anthony J
  36. Conflict, Climate and Cells: A Disaggregated Analysis By Harari, Mariaflavia; La Ferrara, Eliana
  37. Rain, agriculture, and tariffs By Bastos, Paulo; Straume, Odd Rune; Urrego, Jaime A.
  38. Promoción de la Conservación de Bosque Natural de Roble mediante el pago por el Servicio Ambiental de Almacenamiento de Carbono: Un Ejercicio de Optim By Andrés Camilo Álvarez Espinosa
  39. Appendix to "Is Free Trade Good For The Environment?" By M. Scott Taylor; Brian Copeland
  40. Firewood Collections and Economic Growth in Rural Nepal 1995-2010: Evidence from a Household Panel By Baland, Jean-Marie; Libois, Francois; Mookherjee, Dilip
  41. Valuation of a Recreational Fishery - A Case Study By Kelly, Stephen; Bright, Francis
  42. Economic drivers of biological invasions: A worldwide, bio-geographical analysis By Dalmazzone Silvana; Giaccaria Sergio
  43. The Access Almanac: Planning for High Speed Rail By Wachs, Martin
  44. Derretimiento y Retroceso Glaciar: Entendiendo la Percepción de los Hogares Agrícolas que se Enfrentan a los Desafíos del Cambio Climático By Adriana Bernal Escobar; Rafael Cuervo; Gonzalo Pinzón Trujillo; Jorge H. Maldonado.
  45. Asymmetric Nash Solutions in the River Sharing Problem By Harold Houba; Gerard van der Laan; Yuyu Zeng

  1. By: Cox, Craig
    Keywords: Environmental Economics and Policy, Productivity Analysis,
    Date: 2013–02
    URL: http://d.repec.org/n?u=RePEc:ags:usao13:146865&r=env
  2. By: Goergen, Michael
    Keywords: Environmental Economics and Policy, Resource /Energy Economics and Policy,
    Date: 2013–02
    URL: http://d.repec.org/n?u=RePEc:ags:usao13:146784&r=env
  3. By: Thomas Michielsen
    Abstract: Anticipated climate policies are ineffective when fossil fuel owners respond by shifting supply intertemporally (the green paradox). This mechanism relies crucially on the exhaustibility of fossil fuels. We analyze the effect of anticipated climate policies on emissions in a simple model with two fossil fuels: one scarce and dirty (eg oil), the other abundant and dirtier (eg coal). We derive conditions for a 'green orthodox': anticipated climate policies may reduce current emissions. Calibrations suggest that intertemporal carbon leakage (from -22% to 13%) is a relatively minor concern.
    Keywords: Mineral Resources, Transport Infrastructure, Regional Trade Integration, Gravity Model, Economic Legacy of Colonialism
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:oxf:oxcrwp:108&r=env
  4. By: Covington, William Wallace
    Keywords: Environmental Economics and Policy,
    Date: 2013–02
    URL: http://d.repec.org/n?u=RePEc:ags:usao13:146785&r=env
  5. By: Frankenberger, Jane
    Keywords: Environmental Economics and Policy,
    Date: 2013–02–22
    URL: http://d.repec.org/n?u=RePEc:ags:usao13:146637&r=env
  6. By: Allen, Art
    Keywords: Environmental Economics and Policy,
    Date: 2013–02
    URL: http://d.repec.org/n?u=RePEc:ags:usao13:146867&r=env
  7. By: Heutel, Garth (University of North Carolina at Greensboro, Department of Economics); Kelly, David L. (University of Miami)
    Abstract: Government policies that are not intended to address environmental concerns can nonetheless distort prices and affect firms' emissions. We present an analytical general equilibrium model to study the effect of distortionary subsidies on factor prices and on environmental outcomes. We model an output subsidy, a capital subsidy, relief from environmental regulation, and a direct cash subsidy. In exchange for receiving subsidies, firms must agree to a minimum level of labor employment. Each type of subsidy and the employment constraint create both output effects and substitution effects on input prices and emissions. We calibrate the model to the Chinese economy, where government involvement affects emissions from both state-owned enterprises and private firms. Variation in production substitution elasticities does not substantially affect input prices, but it does substantially affect emissions.
    Keywords: Pollution; China; Incidence; Perverse Subsidies
    JEL: H23 Q52 Q58
    Date: 2013–04–02
    URL: http://d.repec.org/n?u=RePEc:ris:uncgec:2013_005&r=env
  8. By: Tomer, Mark D.
    Keywords: Environmental Economics and Policy,
    Date: 2013–02
    URL: http://d.repec.org/n?u=RePEc:ags:usao13:146866&r=env
  9. By: Bruno Lanz (ETH Zurich, Switzerland); Sebastian Rausch (ETH Zurich, Switzerland)
    Abstract: Firms subject to cost-of-service regulation cannot withhold windfall profits associated with free emissions allowances. This paper examines the efficiency and distributional impacts of two approaches to transfer free allowances to consumers: output subsidies and lump-sum payments. We employ an empirically calibrated model of the U.S. economy that features regulated monopolies in the electricity sector and many heterogeneous households. Under a carbon dioxide cap-and-trade policy, we find that using free allowances to subsidize regulated electricity prices increases aggregate welfare costs by 40-80 percent relative to lump-sum transfers. These inefficiencies are disproportionately borne by households in the tails of the income distribution.
    Keywords: Climate policy; Cap-and-trade; Allowance allocation; Cost-of-service regulation; Electricity Generation.
    JEL: C61 C68 D58 Q43 Q54
    Date: 2013–04
    URL: http://d.repec.org/n?u=RePEc:eth:wpswif:13-178&r=env
  10. By: Brandt, David
    Keywords: Environmental Economics and Policy,
    Date: 2013–02
    URL: http://d.repec.org/n?u=RePEc:ags:usao13:146849&r=env
  11. By: Haney, Rick
    Keywords: Environmental Economics and Policy,
    Date: 2013–02
    URL: http://d.repec.org/n?u=RePEc:ags:usao13:146848&r=env
  12. By: Pannell, David J.
    Abstract: Requirements that environmental programs must meet in order to deliver value for money are identified, illustrated and discussed. It is argued that environmental managers and policy makers should carefully consider the extent to which potential policies and investments deliver environmental outcomes, not just outputs and activities. Processes for ranking potential environmental investments need to consider a sufficient set of information to properly evaluate benefits and costs. That information must be in a rigorous way. Many ranking systems in practical use do not meet these requirements. Environmental projects of different scales and intensities can vary greatly in the value for money that they offer, so different versions of a project should be evaluated and compared. The effectiveness of a program or project can be sensitive to the policy mechanism(s) used, so these too should be compared and evaluated for each potential project. Programs should be designed in a way that provides incentives for environmental managers to develop and pursue projects that provide high value for money, rather than creating barriers to that outcome. In some cases environmental economists could increase the value for money from investments in their research and analysis by avoiding the over-concentration of effort into a subset of the many types of information needed to make sound management and policy decisions. There are several reasons to expect that relatively less detailed or sophisticated information may provide greater value for money: diminishing marginal benefits from sophistication and detail, increasing marginal costs of sophistication and detail, and the limited capacities of potential users of this information. There is significant potential to improve the value for money generated by public investments in environmental projects and in environmental economics, although there are significant challenges in each case.
    Keywords: Environmental Economics and Policy,
    Date: 2013–03–14
    URL: http://d.repec.org/n?u=RePEc:ags:uwauwp:146501&r=env
  13. By: Jalloh, Abdulai; Nelson, Gerald C.; Thomas, Timothy S.; Zougmoré, Robert; Roy-Macauley, Harold
    Abstract: The first of three books in IFPRI’s climate change in Africa series, West African Agriculture and Climate Change: A Comprehensive Analysis examines the food security threats facing 11 of the countries that make up West Africa — Benin, Burkina Faso, Côte d’Ivoire, Ghana, Guinea, Liberia, Niger, Nigeria, Senegal, Sierra Leone, and Togo — and explores how climate change will increase the efforts needed to achieve sustainable food security throughout the region. West Africa’s population is expected to grow at least through mid-century. The region will also see income growth. Both will put increased pressure on the natural resources needed to produce food, and climate change makes the challenges greater. West Africa is already experiencing rising temperatures, shifting precipitation patterns, and increasing extreme events. Without attention to adaptation, the poor will suffer. Through the use of hundreds of scenario maps, models, figures, and detailed analysis, the editors and contributors of West African Agriculture and Climate Change present plausible future scenarios that combine economic and biophysical characteristics to explore the possible consequences for agriculture, food security, and resources management to 2050. They also offer recommendations to national governments and regional economic agencies already dealing with the vulnerabilities of climate change and deviations in environment. Decisionmakers and researchers will find West African Agriculture and Climate Change a vital tool for shaping policy and studying the various and likely consequences of climate change.
    Keywords: Benin, Burkina Faso, Côte d’Ivoire, Ghana, Guinea, Liberia, Niger, Nigeria, Senegal, Sierra Leone, Togo, West Africa, Africa South of Sahara, Africa, agriculture, Climate change, food security, Crops, Crop yield, Crop modeling, Crop diversification, Crop production, crop failure, land use, Land races, Plant land races, Population distribution, precipitation, Temperature, area, Rainfed farming, maize, Millets, Sorghum, Rice, Groundnuts, data, methodology, International Model for Policy Analysis of Agricultural Commodities and Trade, IMPACT model, Greenhouse gases, Rural population, Economic losses, farmers, National Adaptation Programmes of Action, NAPA, farming systems, Livestock, Mortality, food prices
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:fpr:resrep:abdulaijalloh&r=env
  14. By: de Rigo, Daniele
    Abstract: Excerpt: Computational aspects increasingly shape environmental sciences. Actually, transdisciplinary modelling of complex and uncertain environmental systems is challenging computational science (CS) and also the science-policy interface. Large spatial-scale problems falling within this category - i.e. wide-scale transdisciplinary modelling for environment (WSTMe) - often deal with factors for which deep-uncertainty may prevent usual statistical analysis of modelled quantities and need different ways for providing policy-making with science-based support. Here, practical recommendations are proposed for tempering a peculiar - not infrequently underestimated - source of uncertainty. Software errors in complex WSTMe may subtly affect the outcomes with possible consequences even on collective environmental decision-making. Semantic transparency in CS and free software are discussed as possible mitigations. [...]
    Keywords: software uncertainty; software errors; open science; free software; free scientific software; semantic array programming; data-transformation modelling; reproducible research; environmental modelling; complexity; uncertainty
    JEL: C6 C45 Q51 Q54 Q57 C44 C02
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:45960&r=env
  15. By: Lutsey, Nic
    Keywords: Engineering, Natural Resources and Conservation, Social Sciences, fuel economy, co2 emissions, automobile, automakers
    Date: 2012–10–01
    URL: http://d.repec.org/n?u=RePEc:cdl:uctcwp:qt8qv9t5r0&r=env
  16. By: Schlauch, Michael; Palmisano, Gaia
    Abstract: This paper examines the assumptions and conclusions of the neoclassical growth model put forth by Solow and many others. We investigate the origins of the paradigm of unlimited growth and technological progress and question their plausibility. In contrast, we develop a modified version of the neoclassi- cal growth model where we consider non-human, environmental resources such as energy as an additional input factor and recognize their limited ca- pacity to recover from human impact. Surprisingly, the same mathematical framework of the neoclassical growth model gets to the opposite conclusions - namely that long term growth cannot exceed a level in which nature begins to deplete. Growth further that level as we might experience today leads to natural and economic disaster. Technological progress understood as produc- tivity increase can only delay but not prevent this crisis. We compare these conclusions to the opposite hypothesis of the Environmental Kuznets Curve. Also we show how this model can lead to a greater understanding of present or future observations that are connected to environmental deficiency, such as social divergence and stagnating life satisfaction in developed countries.
    Keywords: growth; degrowth; limits of growth; ecological economics; resource efficiency; solow-swan model; sustainability; ecology; neoclassical growth model; EKC; environmental kuznets curve
    JEL: O11 O30 Q01 Q26 Q43
    Date: 2013–04–05
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:45867&r=env
  17. By: Mohamed Amine Boutabba (EPEE, University of Evry Val d’Essonne)
    Abstract: This paper examines the long-run equilibrium and the existence and direction of a causal relationship between carbon emissions, financial development, economic growth, energy consumption and trade openness for India in a multivariate framework. The results suggest that there is strong evidence on the long run and causal relationships between per capita carbon emissions, per capita real income, the square of per capita real income, per capita energy use, financial development and trade openness. The results also confirm the existence of EKC hypothesis in the Indian economy. Further, causality tests also indicate that there was a unidirectional Granger causality running from per capita real income, per capita energy consumption, and financial development to per capita carbon emissions, all without feedback. The evidence seems to suggest that financial system should take into account the environment aspect in their current operations. The findings of this study may be of great importance for policy and decision-makers in order to develop energy policies for India that contribute to curb carbon emissions while preserving economic growth.
    Keywords: Carbon emissions, Financial development, Growth, Energy consumption, Trade
    JEL: C32 O53 Q43 Q53 Q56
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:eve:wpaper:13-05&r=env
  18. By: Anne Borge Johannesen; Anders Skonhoft (Department of Economics, Norwegian University of Science and Technology); Anders Nielsen (Centre for Ecological and Evolutionary Synthesis (CEES), Department of Biology, University of Oslo)
    Abstract: We study the economy and ecology of sheep farming under future climate change scenarios. The analysis is at the farm level and includes two different categories of the animals, ewes (adult females) and lambs with a crucial distinction between the outdoors grazing season and the winter indoors season. The model is formulated in a Nordic economic and biological setting. During the outdoors grazing season, animals may experience growth constraints as a result of limited grazing resources. The available grazing resources are determined by animal density (stocking rate) and weather conditions potentially affecting the weight, and hence, the value of lambs. Because empirical evidence suggests that climate changes, e.g., increased temperature, have contrasting effects on lamb weights depending on the location of the farm, the spatial effects of such changes are analyzed.
    Keywords: sheep farming, weather conditions, climate change, vegetation growth, stage model
    Date: 2013–03–26
    URL: http://d.repec.org/n?u=RePEc:nst:samfok:14213&r=env
  19. By: Georg Zachmann
    Abstract: The issue: The European Union's emissions trading system (ETS), introduced in 2005, is the centerpiece of EU decarbonisation efforts and the biggest emissions trading scheme in the world. After a peak in May 2008, the price of ETS carbon allowances started to collapse, and industry, civil society and policymakers began to think about how to â??repair the ETSâ??. However, the ETS is an effective and efficient tool to mitigate greenhouse gas emissions, and although prices have not been stable, it has evolved to cover more sectors and greenhouse gases, and to become more robust and less distorting. Prices are depressed because of an interplay of fundamental factors and a lack of confidence in the system. Policy challenge The ETS must be stabilised by reinforcing the credibility of the system so that the use of existing low-carbon alternatives (for example burning gas instead of coal) is incentivised and investment in low-carbon assets is ensured. Further-more, failure to reinvigorate the ETS might compromise the cost-effective synchronisation of European decarbonisation efforts across sectors and countries. To restore credibility and to ensure long-term commitment to the ETS, the European Investment Bank should auction guarantees on the future emission allowance price.This will reduce the risk for low-carbon investments and enable stabilisation of the ETS until a compromise is found on structural measures to reinforce it in order to achieve the EU's long-term decarbonisation targets.
    Date: 2013–04
    URL: http://d.repec.org/n?u=RePEc:bre:polbrf:775&r=env
  20. By: De Valck, Jeremy; Vlaeminck, Pieter; Liekens, Inge; Aertsens, Joris; Chen, Wendy; Vranken, Liesbet
    Abstract: Due to the steady reduction of nature sites in urbanised regions, nature restoration projects are now a focal point of public interest. Policy-makers are required to balance public preferences for nature sites, with the high costs of nature restoration projects. Landscape preferences are, in general, positively correlated with ecological preferences. However this relationship is far from straightforward. Past studies show that different factors, such as personal, site-specific and spatial characteristics, influence preferences, while at the same time, little is known about the relative importance of these factors. This article proposes a conceptual approach for gaining insights into preference heterogeneity, in the context of stated preference environmental valuation studies. We conduct a choice experiment at the Drongengoed (Belgium); an afforested heathland with a diversified mosaic of natural habitats. The experiment determines public preferences towards nature restoration scenarios and illustrates the public’s willingness-to-pay for a change from the current state to a scenario with less coniferous trees, higher biodiversity and good maintaining of accessibility. Area-specific and socio-demographic characteristics are controlled for and affect the preferences for certain types of nature restoration scenarios. Preference heterogeneity is also observed for most of the choice attributes, suggesting that more sophisticated modelling methods are needed.
    Keywords: choice experiment, nature, restoration, ecosystem services, preference heterogeneity, Environmental Economics and Policy,
    Date: 2012
    URL: http://d.repec.org/n?u=RePEc:ags:kucawp:146522&r=env
  21. By: Tilahun, Mesfin; Vranken, Liesbet; Muys, Bart; Deckers, Jozef A.; Gebregziabher, Kidanemariam; Gebrehiwot, Kindeya; Bauer, Hans; Mathijs, Erik
    Abstract: Frankincense from Boswellia papyrifera forest (BPF) is a traded commodity used in the pharmaceutical, food, cosmetic and chemical industries. Ethiopia is an important producer of frankincense, but the resource is under continuous degradation and requires conservation. We applied a contingent valuation to assess rural households’ willingness to pay (WTP) and willingness to contribute labor (WTCL) for BPF conservation. Next to the bid, WTP is influenced most by income, education, and WTCL by family labor and gender of the household head. A household is willing to pay at least US$ 4.86 or contribute 7.17 labor days per year, which amounts to US$ 6.64 at per capita daily income. This suggests using per capita daily income rather than market wage rates could result in convergence in response asymmetry of labor and cash payment vehicles. The potential local demand for conservation of BPF could be mobilized effectively with complementary policy interventions aimed at sustainable use and poverty reduction.
    Keywords: Willingness to pay, Boswellia papyrifera, Forest conservation, Contingent valuation, Environmental Economics and Policy,
    Date: 2012
    URL: http://d.repec.org/n?u=RePEc:ags:kucawp:146520&r=env
  22. By: Lalive, Rafael; Luechinger, Simon; Schmutzler, Armin
    Abstract: Many governments subsidize regional rail service as an alternative to road traffic. This paper assesses whether increases in service frequency reduce road traffic externalities. We exploit differences in service frequency growth by procurement mode following a railway reform in Germany to address endogeneity of service growth. Increases in service frequency reduce the number of severe road traffic accidents, carbon monoxide, nitrogen monoxide, nitrogen dioxide pollution and infant mortality. Placebo regressions with sulfur dioxide and ozone yield no effect. Service frequency growth between 1994 and 2004 improves environmental quality by an amount that is worth approximately 28-40 % of total subsidies. An analysis of household behavior shows that the effects of railway services on outcome variables are driven by substitution from road to rail.
    Keywords: Pollution; Public Transport; Railways; Road Accidents
    JEL: Q53 R41 R48
    Date: 2013–02
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:9335&r=env
  23. By: Forslid, Rikard; Okubo, Toshihiro; Sanctuary, Mark
    Abstract: This paper uses a monopolistic competitive framework with many sectors to study the impact of trade liberalization on local and global emissions. We focus on the interplay of the pollution haven effect and the home market effect and show how a large-market advantage can counterbalance a high emission tax, implying that trade liberalization leads to lower global emissions. Generally, our results suggest that relative market size, the level of trade costs, the ease of abatement, and the degree of product differentiation at the sector level are relevant variables for empirical studies on trade and pollution.
    Keywords: market size; trade liberalization; transboundary pollution
    JEL: F12 F15
    Date: 2013–03
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:9412&r=env
  24. By: Andrés Sánchez Jabba
    Abstract: In an insular region, such as the Archipelago of San Andres, Providencia and Santa Catalina, environmental issues tend to sharpen. As result, its environmental management is different compared to other areas of Colombia, since the vast majority of its territory corresponds to marine surface. This implies an environmental management policy which is consistent with said characteristics in order to achieve efficiency and conservation. Nevertheless, San Andres Island has suffered deterioration of its marine and coastal ecosystems due to the absence of sustainability and planning within its economic and urban development. Therefore, this study presents a detailed description of the main environmental issues in the archipelago, especially San Andres Island, and analyzes their management so as to prevent their occurrence in other areas, such as Providencia and Santa Catalina. RESUMEN: En un territorio insular, como el Archipiélago de San Andrés, Providencia y Santa Catalina, los impactos ambientales tienden a agudizarse. Precisamente, como resultado de su condición específica, su manejo ambiental es distinto en comparación con las demás regiones colombianas, ya que casi la totalidad de su territorio es marino. Por lo tanto, la política ambiental dirigida a esta región debe ser consistente con dichas características y, de esa manera, garantizar una mayor eficiencia. Sin embargo, ello no ha sucedido en la isla de San Andrés, puesto que los ecosistemas marinos y costeros han sufrido un deterioro como resultado de la falta de sostenibilidad y planificación en el desarrollo económico y urbano. En ese orden de ideas, este estudio presenta una descripción y análisis detallado acerca de los principales impactos ambientales en el Archipiélago, especialmente en San Andrés, con el objetivo de prevenir su ocurrencia en otros sectores, como Providencia y Santa Catalina.
    Date: 2012–11–21
    URL: http://d.repec.org/n?u=RePEc:col:000102:010146&r=env
  25. By: Corina Haita
    Abstract: This paper contributes to the literature in market power for emissions permits, modeling an emissions trading scheme in which polluters differ only in their business-as-usual emissions. They play a two-stage static complete information game in which their market power arises endogenously from the business-as-usual emissions. In the first stage the polluters bid in an auction for the distribution of the fixed supply of permits and in the second stage they trade these permits in a secondary market. For compliance, they can also engage in abatement activity at a quadratic cost. In equilibrium all polluters are successful in the auction. In the secondary market the low emitters are net sellers and the high emitters are net buyers. Moreover, the secondary market price is unambiguously above the auction clearing price. The welfare analysis shows that the aggregate compliance cost when polluters act strategically increases in the heterogeneity of their business-as-usual emissions. Furthermore, there exists a threshold of the fixed supply of permits above which strategic behavior is socially preferable. Finally, for certain distributions of the business-as-usual emissions, strategic behavior is cost-effective, regardless of the level of the available supply of permits.
    Date: 2013–03–18
    URL: http://d.repec.org/n?u=RePEc:ceu:econwp:2013_3&r=env
  26. By: Timothy J. Bartik (W.E. Upjohn Institute for Employment Research)
    Abstract: This paper estimates the social costs of job loss due to environmental regulation. Per job lost, potential social costs of job loss are high, plausibly over $100,000 in present value costs (2012 dollars) per permanently lost job. However, these social costs will typically be far less than the earnings associated with lost jobs, because labor markets and workers adjust, increased leisure has some value, and employers benefit from wage reductions. A plausible range for social costs is 8 - 32 percent of the associated earnings of the lost jobs. Social costs will be higher for older workers, high-wage jobs, and in high unemployment conditions. Under plausible estimates of job loss for most environmental regulations, the social costs of job loss will typically be less than 10 percent of other measured social costs of regulations. Therefore, adding in job loss is unlikely to tip many regulatory benefit-cost analyses.
    Keywords: Benefit cost analysis, worker displacement, environmental regulation, social cost of labor
    JEL: D61 Q52 J68
    Date: 2013–03
    URL: http://d.repec.org/n?u=RePEc:upj:weupjo:13-193&r=env
  27. By: Heuson, Clemens
    Abstract: Recent work has shown that Weitzman's policy rule for choosing price- versus quantity-based pollution control instruments under uncertainty is biased when the polluting firms possess market power (Heuson 2010). However, this study is restricted to emission standards and taxes, while tradable emission permits are ruled out since market power gives rise to strategic permit trading, which requires some separate effort in investigation. This paper aims at closing this gap and, in doing so, makes three main contributions. First, it provides the first-time full comparative analysis of the three most common pollution control instruments stated above which takes into account two features that are frequently given in actual regulation settings, namely market power of polluting firms and uncertain abatement costs from the regulator's perspective. Second, the paper reveals a new form of strategic permit trading that may arise even though the permit market is perfectly competitive. Finally, the rather pessimistic view concerning the impact of market power on the comparative advantage of tradable emission permits, which dominates in the literature so far, is put into context. --
    Keywords: external diseconomies of pollution,emission standards,tradable emission permits,emission taxes,uncertainty,Cournot competition,market power,strategic behaviour
    JEL: D89 L13 Q58
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:zbw:ufzdps:62013&r=env
  28. By: M. Scott Taylor (University of Calgary); Juan Moreno Cruz
    URL: http://d.repec.org/n?u=RePEc:clg:wpaper:2013-10&r=env
  29. By: Joshua Graff Zivin; Matthew Neidell
    Abstract: In this review, we discuss three major contributions economists have made to our understanding of the relationship between the environment and individual well-being. First, in explicitly recognizing how optimizing behavior, particularly in the form of residential sorting, can lead to non-random assignment of pollution, economists have employed a wide range of quasi-experimental techniques to develop causal estimates of the effect of pollution. Second, economic research has placed a considerable focus on the role of avoidance behavior, which is an important component for understanding the difference between biological and behavioral effects of pollution and for proper welfare calculations. Lastly, economic research has expanded the focus of analysis beyond traditional health outcomes to include measures of human capital, including labor supply, productivity, and cognition. Our review of the quasi-experimental evidence on this topic suggests that pollution does indeed have a wide range of effects on individual well-being, even at levels well below current regulatory standards. Given the importance of health and human capital as an engine for economic growth, these findings underscore the role of environmental conditions as an important factor of production.
    JEL: H23 H41 I12 J24 Q5
    Date: 2013–04
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:18935&r=env
  30. By: Yu, Bingxin; Zhu, Tingju; Breisinger, Clemens; Manh Hai, Nguyen
    Abstract: This paper examines how a changing climate may affect rice production and how Vietnamese farmers are likely to adapt to various climatic conditions using an innovative yield function approach, taking into account sample selection bias and endogeneity of inputs. Model results suggest that although climate change can potentially reduce rice production, farmers will respond mainly by adjusting the production portfolio and levels of input use. However, investments in rural infrastructure and human capital will have to support farmers in the adaptation process if production levels and farm incomes are to be sustained in the future.
    Keywords: Climate change; rice; control function; endogeneity; Sampling; Agriculture; rice; crop yield;,
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:fpr:ifprid:1248&r=env
  31. By: Janet Currie; Lucas Davis; Michael Greenstone; Reed Walker
    Abstract: A ubiquitous and largely unquestioned assumption in studies of housing markets is that there is perfect information about local amenities. This paper measures the housing market and health impacts of 1,600 openings and closings of industrial plants that emit toxic pollutants. We find that housing values within one mile decrease by 1.5 percent when plants open, and increase by 1.5 percent when plants close. This implies an aggregate loss in housing values per plant of about $1.5 million. While the housing value impacts are concentrated within ½ mile, we find statistically significant infant health impacts up to one mile away.
    Date: 2013–04
    URL: http://d.repec.org/n?u=RePEc:cen:wpaper:13-14&r=env
  32. By: Bell, William Paul; Wild, Phillip; Foster, John
    Abstract: This study investigates the transformative effect of unscheduled solar PV and wind generation on electricity demand. The motivations for the study are twofold, the poor medium term predictions of electricity demand in the Australian National Electricity Market and the continued rise in peak demand but reduction in overall demand. A number of factors contribute to these poor predictions, including the global financial crisis inducing a reduction in business activity, the Australian economy’s continued switch from industrial to service sector, the promotion of energy conservation, and particularly mild weather reducing the requirement for air conditioning. Additionally, there is growing unscheduled generation, which is meeting electricity demand. This growing source of generation necessitates the concepts of gross and net demand where gross demand is met by unscheduled and scheduled generation and net demand by scheduled generation. The methodology compares the difference between net and gross demand of the 50 nodes in the Australian National Electricity Market using half hourly data from 2007 to 2011. The unscheduled generation is calculated using the Australian Bureau of Meteorology half hourly solar intensity and wind speed data and the Australian Clean Energy Regulator’s database of small generation units’ renewable energy target certificates by postcode. The findings are that gross demand rather than net demand helps explain both the overall reduction in net demand and the continued increase in peak demand. The study has two main conclusions. Firstly, a requirement for policy to target the growth in peak demand via time of supply feed-in tariff for small generation units. Secondly, modellers of electricity demand consider both net and gross demand in their forecasts. The time of supply feed-in tariffs are intended to promote the adoption of storage technologies and demand side participation and management. Modellers considering both net and gross demand are required to model unscheduled generation. This requirement ensues that more comprehensive solar intensity data be provided by the Bureau of Meteorology and that the Australian National Electricity Market Operator provide data in GIS format of each demand node using the Australian Statistical Geography Standard developed by Australian Bureau of Statistics to enable easier integration of large quantities of geographic data from a number of sources. The applicability of these finding become more relevant to other countries as unscheduled generation becomes more wide spread. This study is instrumental to a range of further research. Other sources of unscheduled generations should be considered to form a more comprehensive concept of gross demand, for instance, solar hot water and small hydro. Replacing electrical hot water heaters with solar hot water reduces the overnight demand, which may provide a considerable transformative effect on net electricity demand. In addition, energy efficiency is meeting demand for electricity; incorporating energy efficiency would form an even more comprehensive concept of gross electricity demand and could help improve longer term electricity demand projections.
    Keywords: solar PV, wind generation, electricity demand, AEMO, electricity demand forecasting, renewable energy, transmission, climate change adaptation, Feed-in tariffs; non-scheduled generation; FiT; residential solar PV; Sustainable; DUOS; TUOS; smart meters
    JEL: O13 O3 O31 O33 Q01 Q2 Q28 Q31 Q4 R22 R38
    Date: 2013–04–03
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:46065&r=env
  33. By: Cullman, Constance
    Keywords: Agricultural and Food Policy,
    Date: 2013–02
    URL: http://d.repec.org/n?u=RePEc:ags:usao13:146786&r=env
  34. By: Massey, Adrianne
    Keywords: Crop Production/Industries, Research and Development/Tech Change/Emerging Technologies,
    Date: 2013–02
    URL: http://d.repec.org/n?u=RePEc:ags:usao13:146642&r=env
  35. By: Harding, Torfinn; Venables, Anthony J
    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: Dutch disease; exports; imports; natural resources; resource curse; trade
    JEL: E21 E62 F43 H63 O11 Q33
    Date: 2013–01
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:9318&r=env
  36. By: Harari, Mariaflavia; La Ferrara, Eliana
    Abstract: We conduct a geographically and temporally disaggregated empirical analysis of civil conflict at the sub-national level in Africa over the period 1997-2011. Our units of observation are cells of 1 degree of latitude by 1 degree of longitude. We exploit within-year variation in the timing of weather shocks and in the growing season of different crops, as well as spatial variation in crop cover, to construct an original measure of shocks that are relevant for agricultural production. Employing a new drought index we show that negative climate shocks which occur during the growing season of the main crop cultivated in the cell have a sizeable and persistent effect on conflict incidence. We also use state-of-the-art spatial econometric techniques to test for the presence of temporal and spatial spillovers in conflict, and we find both to be sizeable and highly statistically significant. Exploiting variation in the type of conflict episode, we find that the impact of climate shocks on conflict is particularly significant when focusing on outcomes such as battles and violence against civilians. Our estimates can be used to predict how future warming scenarios affect the prevalence and diffusion of conflict.
    Keywords: Africa; civil conflict; gridded data; spatial; weather shocks
    JEL: O12
    Date: 2013–01
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:9277&r=env
  37. By: Bastos, Paulo; Straume, Odd Rune; Urrego, Jaime A.
    Abstract: This paper examines whether and how rainfall shocks affect tariff setting in the agricultural sector. In a model of strategic trade policy, the authors show that the impact of a negative rainfall shock on optimal import tariffs is generally ambiguous, depending on the weight placed by the domestic policy maker on tariff revenue, profits and the consumer surplus. The more weight placed on domestic profits, the more likely it is that the policy maker will respond to a rainfall shortage by reducing import tariffs. These findings are robust to alternative assumptions about market structure and the timing of the game. Using detailed panel data on applied tariffs and rainfall for 70 nations, the authors find robust evidence that rainfall shortages generally induce policy makers to set lower tariffs on agricultural imports.
    Keywords: Agribusiness,Economic Theory&Research,Markets and Market Access,Free Trade,Science of Climate Change
    Date: 2013–03–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:6394&r=env
  38. By: Andrés Camilo Álvarez Espinosa
    Abstract: Reducir la deforestación del bosque natural implica conservar la biodiversidad y mantener almacenado el carbono reduciendo las emisiones de Gases de Efecto Invernadero. Los pagos por servicios ambientales –PSA– fortalecerían los mecanismos de regulación directa para la conservación ya que: reflejan el costo de oportunidad de conservar, minimizan costos de transacción, son efectivos al conservar áreas mayores y establecen niveles sostenibles de aprovechamiento forestal. Usando un modelo de optimización dinámica el cual incluye PSA por almacenamiento de carbono en el bosque de roble del corredor Guantiva-La Rusia-Iguaque se encuentra que el área conservada sería 103.426 hectáreas, cifra mayor al área protegida actualmente de 20.089 hectáreas.
    Date: 2013–02–26
    URL: http://d.repec.org/n?u=RePEc:col:000089:010678&r=env
  39. By: M. Scott Taylor (University of Calgary); Brian Copeland
    URL: http://d.repec.org/n?u=RePEc:clg:wpaper:2013-05&r=env
  40. By: Baland, Jean-Marie; Libois, Francois; Mookherjee, Dilip
    Abstract: A household panel data set is used to investigate the effects of economic growth on firewood collection in Nepal between 1995 and 2010. Results from preceding cross-sectional analyses are found to be robust: (a) rising consumptions for all but the top decile were associated with increased firewood collections, contrary to the Poverty-Environment hypothesis; (b) sources of growth matter: increased livestock was associated with increased collections, and falling household size, increased education, non-farm business assets and road connectivity with reduced collections. Nepal households collected 25% less firewood over this period, mostly explained by falling livestock, and rising education, connectivity and out-migration.
    Keywords: deforestation; Environmental Kuznets Curve; growth; Nepal
    JEL: D12 O1 Q2
    Date: 2013–03
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:9394&r=env
  41. By: Kelly, Stephen; Bright, Francis
    Keywords: Livestock Production/Industries,
    Date: 2013–03–14
    URL: http://d.repec.org/n?u=RePEc:ags:aare92:146533&r=env
  42. By: Dalmazzone Silvana; Giaccaria Sergio (University of Turin)
    Abstract: The introduction of harmful non-indigenous species is generally acknowledged to depend both on the propagule pressure imposed by openness to international trade and on the health of the receiving ecosystem. Bio-geographical factors however play a crucial role in determining the level of risk associated with trade. We develop an analytical treatment of bio-geographical similarity between trade partners, within a model that links the incidence of invasive species to resource extraction, polluti on and to import volumes disaggregated by country and region of origin. The model, estimat ed with data on invasive species of all taxa in 123 countries, shows that considering the geographical structure of trade flows and the bio-geographical similarity between sources and destinations substantially improves our understanding of the drivers of biolog ical invasions. The results allow us to identify, in a worldwide perspective, the relative risk of biological invasions (by habitat and organism type) entailed by different commercial partners.
    Date: 2012–10
    URL: http://d.repec.org/n?u=RePEc:uto:dipeco:201215&r=env
  43. By: Wachs, Martin
    Keywords: Engineering, Natural Resources and Conservation, Social Sciences, high speed rail, california, fast trains
    Date: 2012–10–01
    URL: http://d.repec.org/n?u=RePEc:cdl:uctcwp:qt5535d27m&r=env
  44. By: Adriana Bernal Escobar; Rafael Cuervo; Gonzalo Pinzón Trujillo; Jorge H. Maldonado.
    Abstract: El derretimiento y retroceso de los glaciares colombianos reducen la oferta de agua, afectando al sector agrícola, responsable del 10-14% del PIB colombiano. Utilizando juegos económicos experimentales estudiamos las decisiones sobre el uso del agua y la respuesta a instituciones que facilitan la implementación de estrategias de adaptación al cambio climático, en agricultores colombianos que demandan agua proveniente de la alta montaña. Los resultados muestran que los agricultores aumentan el uso de agua del distrito de riego como respuesta a choques en el clima (menor precipitación). La inversión en estrategias de adaptación es frecuente pero no reduce el consumo de agua. A partir de estos resultados, surgen recomendaciones para enfrentar la escasez de agua en un escenario de cambio climático.
    Date: 2013–02–25
    URL: http://d.repec.org/n?u=RePEc:col:000089:010679&r=env
  45. By: Harold Houba (VU University Amsterdam); Gerard van der Laan (VU University Amsterdam); Yuyu Zeng (VU University Amsterdam)
    Abstract: We study multiple agents along a general river structure that is expressed by a geography matrix and who have access to limited local resources, quasi-linear preferences over water and money and cost functions dependent upon river inflow and own extraction. Unanimity bargaining determines the water allocation and monetary transfers. We translate International Water Law into either disagreement outcomes or individual aspiration levels. In the former case, we apply the asymmetric Nash bargaining solution, in the latter case the agents have to compromise in order to agree and we apply the asymmetric Nash rationing solution. In both cases the optimization problem is separable into two subproblems: the efficient water allocation that maximizes utilitarian welfare given the geography matrix; and the determination of the monetary transfers associated with the weights. We show that the Nash rationing solution may result in nonparticipation, therefore we generalize to the case with participation constraints.
    Keywords: River Basin Management; International Water Law; Negotiations; Externalities; Political Economy of Property Rights
    JEL: C70 D60 Q53
    Date: 2013–04–02
    URL: http://d.repec.org/n?u=RePEc:dgr:uvatin:20130051&r=env

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