|
on Environmental Economics |
| By: | Federico Cingano (OECD); Ivan Faiella (Bank of Italy) |
| Abstract: | The Europe 2020 strategy commits Italy to reduce emissions by about 16 per cent by 2020, compared with 2005. In the case of transport, the sector that has contributed most to the growth of total emissions between 1990 and 2008, the 2020 target could be achieved by introducing a Carbon Tax (CT). A CT would significantly reduce householdsÂ’ demand for private transportation, lowering their emissions. CT proceedings could pay for the reduction of more distortive levies (e.g. labour taxation) or recycled to finance the deploying of renewable energy, replacing the existing charges on electricity consumption, thus alleviating the cost burden of less-affluent households. The CT would also be consistent with the polluter-pays principle, since the largest reduction in emissions would be financed to a proportionally larger extent by those with higher emissions. |
| Keywords: | environmental taxation, climate change, transports |
| JEL: | D62 Q52 Q54 Q58 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_206_13&r=env |
| 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:unm:unumer:2013009&r=env |
| 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 modeling (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 weatherrelated damages, R&D, directed technical change, capital-embodied technologies, 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:unm:unumer:2013041&r=env |
| By: | David I. Stern; Frank Jotzo; Leo Dobes |
| Abstract: | We review the historical literature on the economics of climate change with a focus on the evolution of the literature from some of the early classic papers to the latest contributions. We divide the paper into three main sections: trends in greenhouse gas emissions, mitigation, and adaptation. |
| Keywords: | Economics, climate change, emissions trends, mitigation, adaptation |
| JEL: | Q54 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:een:ccepwp:1307&r=env |
| By: | Jonathan Pickering; Frank Jotzo; Peter J. Wood |
| Abstract: | International funding for climate change action in developing countries may enhance the legitimacy of global climate governance. However, by allowing for a fragmented approach to mobilizing funds, current multilateral commitments raise further legitimacy challenges. We analyze the potential for unilateral and coordinated approaches to advance “output” and “input” legitimacy respectively by raising adequate funds and representing interests in contributing and recipient countries that are affected by funding decisions. Achieving legitimacy will require coordinated approaches to goal-setting, oversight and effort-sharing. Vesting contributing countries with substantial discretion over funding sources may enhance taxpayers’ support and boost funding more rapidly. However, multilateral coordination will be necessary to maximize opportunities for raising revenue from carbon pricing and to minimize adverse impacts of funding choices on developing countries. Our analysis provides a principled justification for the degree of fragmentation compatible with achieving legitimacy. These insights may inform future evaluation of legitimacy requirements in other spheres of environmental governance. |
| Keywords: | Climate policy, climate finance, legitimacy, fragmentation, climate change mitigation, climate change adaptation, development assistance |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:een:ccepwp:1308&r=env |
| By: | Nikita Lyssenko; Leslie Shiell |
| Abstract: | Most policy exercises that model the optimal control of greenhouse gas emissions have focused almost exclusively on the pollution problem in isolation from the fossil fuels scarcity problem. We argue that this approach misses important interactions between the two issues and, contrary to what is claimed, will lead to sub-optimal policies, at least within the framework of the models employed. To demonstrate, we employ an intertemporally optimizing model of economy and climate, with carbon resource scarcity and a backstop technology. Using plausible parameter values, we conclude that the initial resource shadow price is approximately twice the value of the pollution shadow price. Therefore, the optimal carbon tax is approximately three times what would be recommended if we focused solely on the pollution problem. This result is robust to changes in the values of key parameters, including the social discount rate and the backstop price. |
| Keywords: | pollution, scarcity, carbon tax, climate policy |
| JEL: | Q3 Q4 |
| Date: | 2013–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:eus:ce3swp:0613&r=env |
| By: | Grimaud, André; Neubauer, Mauricio; Rougé, Luc |
| Abstract: | We study an economy in which a final good is produced by two sectors. One uses a non-renewable and polluting resource, the other a renewable and clean resource. A specific type of research is associated to each sector. The public authorities levy a carbon tax and simultaneously subsidize both research sectors. We study the impact of such a policy scheme on the rate of resource extraction and emissions. The subsidy to research in the clean sector goes in the opposite direction of the effects of the carbon tax. If the tax creates a green paradox, the subsidy moderates it; if the tax slows down resource extraction, then the subsidy generates a green paradox |
| Keywords: | carbon tax, directed technical change, green paradox, R&D policy |
| JEL: | O32 O41 Q20 Q32 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:27735&r=env |
| By: | Ingmar Schumacher |
| Abstract: | This model provides a mechanism explaining the surge in environmental culture across the globe. We discuss empirical evidence on the determinants of environmental culture and preferences. Based upon this empirical evidence, we develop an overlapping generations model with environmental quality and endogenous environmental culture. The model predicts that for low wealth levels, society is unable to free resources for environmental culture. In this case, society will only invest in environmental maintenance if environmental quality is suffciently low. Once society has reached a certain level of economic development, then it may optimally invest a part of its wealth in developing an environmental culture. Environmental culture has not only a positive impact on environmental quality through lower levels of consumption, but it improves the environment through maintenance expenditure for wealth-environment combinations at which, in a restricted model without environmental culture, no maintenance would be undertaken. Environmental culture leads to a society with a higher indirect utility at steady state in comparison to the restricted model. Our model leads us to the conclusion that, for societies trapped in a situation with low environmental quality, investments in culture may induce positive feedback loops, where more culture raises environmental quality which in turn raises environmental culture. We also discuss how environmental culture may lead to an Environmental Kuznets Curve. |
| Keywords: | environmental culture; overlapping generations model; environment; endogenous preferences. |
| JEL: | Z1 Q56 D90 |
| Date: | 2013–11–07 |
| URL: | http://d.repec.org/n?u=RePEc:eus:ce3swp:0413&r=env |
| By: | International Water Management Institute (IWMI). |
| Keywords: | Climate change; Policy; Rain; Water harvesting |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:iwt:bosers:h045803&r=env |
| By: | Ben Jebli, Mehdi; Ben Youssef, Slim; Ozturk, Ilhan |
| Abstract: | We use panel cointegration techniques to investigate the causal relationship between CO2 emissions, renewable and non-renewable energy consumption, and trade openness in three different models for a panel of twenty five OECD countries over the period 1980-2009. Also the validity of the Environmental Kuznets Curve (EKC) hypothesis has been tested for these countries. Short-run Granger causality tests show the existence of a unidirectional causality running from the square of per capita output to per capita CO2 emissions and per capita non-renewable energy consumption and a unidirectional causality running from per capita real exports to per capita CO2 emissions. There is an indirect short-run causality running from per capita output to per capita non-renewable energy consumption. In the long-run, the FMOLS and DOLS estimates suggest that per capita GDP and per capita non-renewable energy consumption have a positive impact on per capita CO2 emissions. The long-run estimates suggest that the square of per capita GDP, per capita renewable energy consumption, and per capita real exports and imports have a negative impact on per capita CO2 emissions. Therefore, more trade openness and more use of renewable energy are efficient strategies to combat global warming. |
| Keywords: | Environmental Kuznets curve; Renewable energy; Non-renewable energy; Trade openness; CO2 emissions; Panel cointegration techniques. |
| JEL: | C33 F18 Q42 Q43 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:51672&r=env |
| By: | Singh, Amarendra Pratap; Narayanan, Krishnan |
| Abstract: | Agriculture stands as most sensitive economic activity to climate variations. Modelling climate-agriculture relationship is one of the most researched issues in recent times. This paper reviews some of the issues regarding modelling agriculture response to climate change. |
| Keywords: | Yield,Climate Change, Ricardian technique |
| JEL: | Q54 |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:51410&r=env |
| By: | Keisuke Kawata (Graduate School for International Development and Cooperation, Hiroshima University); Yasunori Ouchida (Graduate School of Social Science, Hiroshima University) |
| Abstract: | This study develops a two-country model, Home and Foreign, with offshoring and environmental spillover. A final good producer in Home can produce (homogeneous) final goods using customized inputs produced by its partner-supplier in Foreign. The intermediate input price is determined by Nash bargaining, presenting a hold-up problem. Additionally, input production causes transboundary pollution. Home and Foreign governments can set trade taxes. Moreover, the Foreign government can set the environmental standard. This model demonstrates that, under no international policy agreement, both the environmental standard and the quantity of the intermediate input are lower than the first-best levels. This ineffciency persists even if both governments conclude an agreement. |
| Keywords: | Offshoring; Intermediate input trade; Emission spillover; Environmental standard; Incomplete contract |
| JEL: | F21 F13 F18 L24 Q56 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:hir:idecdp:3-8&r=env |
| By: | Ekaterina Sherstyuk (Department of Economics, University of Hawaii at Manoa); Nori Tarui (Department of Economics, University of Hawaii at Manoa); Majah-Leah V. Ravago (School of Economics, University of the Philippines Diliman); Tatsuyoshi Saijo (Kochi University of Technology) |
| Abstract: | Dynamic externalities are at the core of many long-term environmental problems, from species preservation to climate change mitigation. We use laboratory experiments to compare welfare outcomes and underlying behavior in games with dynamic externalities under two distinct settings: traditionally-studied games with infinitely-lived decision makers, and more realistic inter-generational games. We show that if decision makers change across generations, resolving dynamic externalities becomes more challenging for two distinct reasons. First, decision makers’ actions may be short-sighted due to their limited incentives to care about the future generations’ welfare. Second, even when the incentives are perfectly aligned across generations, strategic uncertainty about the follower actions may lead to an increased inconsistency of own actions and beliefs about the others, making own actions more myopic. Inter-generational learning through history and advice from previous generations may improve dynamic efficiency, but may also lead to persistent myopia. |
| Keywords: | economic experiments; dynamic externalities; inter-generational games; climate change |
| JEL: | C92 D62 D90 Q54 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:hai:wpaper:201320&r=env |
| By: | Raouf BOUCEKKINE (Aix-Marseille University (Aix-Marseille School of Economics), CNRS and EHESS); Blanca MARTINEZ (Department of Economics, Universidad Complutense de Madrid, Spain); José Ramon RUIZ-TAMARIT (Department of Economic Analysis, Universitat de Valencia, Spain,, and UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES)) |
| Abstract: | We study optimal sustainable policies in a benchmark logistic world (where both population and technological progress follow logistic laws of motion) subject to a pollution ceiling. The main policy in the hands of the benevolent planner is pollution abatement, ultimately leading to the control of a dirtiness index as in the early literature of the limits to growth literature. Besides inclusion of demographic dynamics, we also hypothesize that population size affects negatively the natural regeneration or assimilation rate, as a side product of human activities (like increasing pollution, deforestation,...). We first characterize optimal sustainable policies. Under certain conditions, the planner goes to the pollution ceiling value and stays on, involving a more stringent environmental policy and a sacrifice in terms of consumption per capita. Second, we study how the sustainable problem is altered when we depart from the logistic world by considering exponential technical progress (keeping population growth logistic). It's shown that, as expected, introducing such an asymmetry widens the margins of optimal policies as sustainable environmental policies are clearly less stringent under exponential technical progress. Third, we connect our model to the data, using in particular UN population projections. |
| Keywords: | Limits to growth, Sustainable policy, Optimal growth, Demographic dynamics, Pollution ceiling |
| Date: | 2013–11–09 |
| URL: | http://d.repec.org/n?u=RePEc:ctl:louvir:2013028&r=env |
| By: | Jean Fouré; Houssein Guimbard; Stéphanie Monjon |
| Abstract: | Unilateral climate policy, such as carbon pricing, represents an additional cost to the economy, especially to energyintensive industrial sectors, as well as those exposed to international competition. A border carbon adjustment (BCA) is often presented as an attractive policy option for countries that want to go ahead without waiting for a global climate agreement. We used the computable general equilibrium model MIRAGE-e to simulate the impact of the introduction of a BCA on imports of energy intensive products in EU and EFTA countries and to evaluate the export losses their main trade partners would suffer. Given that a BCA is a trade measure, it would certainly lead to disputes at the World Trade Organization (WTO). If the BCA is considered illegal, the losses suffered by some partners may justify retaliation, as authorized by a WTO dispute settlement. The overall aggregated impacts of these measures would be negative but marginal, meaning that neither the BCA nor trade retaliation would have a marked impact on consumers’ real income or GDP, while prohibitive retaliatory tariffs are more likely to target sensitive products in the EU. A BCA would ultimately be a signal of the EU’s willingness to maintain an ambitious climate policy. |
| Keywords: | emission trading scheme;border carbon adjustment;trade retaliation |
| JEL: | D58 F18 Q56 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:cii:cepidt:2013-34&r=env |
| By: | Frederick van der Ploeg; Aart de Zeeuw |
| Abstract: | The optimal reaction to a pending climate catastrophe is to accumulate capital to be better prepared for the disaster and levy a carbon tax to reduce the risk of the hazard by curbing global warming. The optimal carbon tax consists of the present value of marginal damages, the non-marginal expected change in welfare caused by a marginal higher risk of catastrophe, and the expected loss in after-catastrophe welfare. The last two terms offset precautionary capital accumulation. A linear hazard function calibrated to an expected time of 15 years for a 32% drop in global GDP if temperature stays at 6 degrees Celsius implies with a discount rate of 1.4% a precautionary return of 1.6% and a carbon tax of 136 US $/tC. More intertemporal substitution lowers precautionary capital accumulation and lessens the need for a high carbon tax, but implies less intergenerational inequality aversion which pushes up the carbon tax. |
| Keywords: | non-marginal climate policy, tipping points, risk avoidance, economic growth, social cost of carbon, precaution, adaptation capital |
| JEL: | D81 H20 O40 Q31 Q38 |
| Date: | 2013–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:eus:ce3swp:0213&r=env |
| By: | Duscha, Vicki; Schumacher, Katja; Schleich, Joachim; Buisson, Pierre |
| Abstract: | This paper assesses the impact of a global phase-out of nuclear energy on the costs of meeting international climate policy targets for 2020. The analyses are based on simulations with a global energy systems model. The phase-out of nuclear power increases greenhouse gas emissions by 2% globally, and 7% for Annex I countries. The price of certificates increases by 24% and total compli-ance costs of Annex I countries rise by 28%. Compliance costs increase the most for Japan (+58%) and the USA (+28%). China, India and Russia benefit from a global nuclear phase-out because revenues from higher trading volumes of certificates outweigh the costs of losing nuclear power as a mitigation option. Even for countries that face a relatively large increase in compliance costs, such as Japan, the nuclear phase-out implies a relatively small overall economic burden. When trading of certificates is available only to countries that committed to a second Kyoto period, the nuclear phase-out results in a larger increase in the compliance costs for the group of Annex I countries (but not for the EU and Australia). Results from sensitivity analyses suggest that our findings are fairly robust to alternative burden-sharing schemes and emission target levels. -- |
| Keywords: | nuclear power,phase out,climate policy,Post-Kyoto,Copenhagen pledges |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisisi:s72013&r=env |
| By: | Leeuwen, George van (Centraal Bureau voor Statistiek); Mohnen, Pierre (UNU-MERIT/MGSoG) |
| Abstract: | Almost all empirical research that has attempted to assess the validity of the Porter hypothesis has started from reduced-form models, e.g. by using single-equation models for estimating the contribution of environmental regulation (ER) to productivity. This paper addresses the Porter Hypothesis within a structural approach that allows us to test what is known in the literature as the "weak" and the "strong" version of the Porter hypothesis. Our "Green Innovation" model includes three types of eco investments and non-eco R&D to explain differences in the incidence of innovation. Besides product and process innovations we recognize eco-innovation as a separate type of innovation output. We explicitly model the potential synergies of introducing the three types of innovations simultaneously and their synergy in affecting total factor productivity (TFP) performance. Using a comprehensive panel of firm-level data built from four surveys we aim to estimate the relative importance of energy price incentives as a market based type of ER and the direct effect of environmental regulation on eco investment and firms' decisions regarding the introduction of several types of innovations. The results of our analysis show a strong corroboration of the weak version of the Porter hypothesis but not of the strong version of the PH, in this case on TFP performance. |
| Keywords: | Porter Hypothesis, green innovation, environmental regulation, innovation complementarities, productivity |
| JEL: | H23 L5 O32 O38 Q55 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2013002&r=env |
| By: | McCornick, Peter; Smakhtin, Vladimir; Bharati, Luna; Johnston, Robyn; McCartney, Matthew; Sugden, Fraser; Clement, Floriane; McIntyre, Beverly |
| Keywords: | Climate change; Water resources; Water management; Water productivity; Water governance; Water storage; Groundwater recharge; Aquifers; River basins; Irrigation schemes; Agriculture; Rainfed farming; Food security; Health hazards; Malaria; Soil moisture; Gender; Women; Environmental flows |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:iwt:bosers:h046223&r=env |
| By: | Johane Dikgang and Edwin Muchapondwa |
| Abstract: | This paper estimates the visitation demand function for Kgalagadi Transfrontier Park (KTP) in order to determine the conservation fee to charge international tourists to maximise park revenue. International tourists account for approximately 20 percent of total number of visitors to South African national parks, with domestic visitors making-up the remaining portion. Though small, the South African international tourism market is mature, and accounts for a disproportionately large share of net revenue. The random effects Tobit model is used to estimate visitation demand at the KTP and three other national parks. Using the estimated elasticities, the revenue-maximizing daily conservation fees are computed to be R1 131.94 (US$144.20) for KTP, R575.67 (US$73.33) for Kruger National Park (KNP), R722.95 (US$92.10) for Augrabies Falls National Park (AFNP) and R634.11 (US$80.78) for Pilanesberg National Park (PNP). Our findings therefore imply that the conservation fees of R180 (US$22.93) for KTP and KNP, R100 (US$12.74) for AFNP, and R45 (US$5.73) for PNP currently charged to international visitors are significantly lower. This indicates that international park fees could be raised. |
| Keywords: | conservation fee, demand, land claim, national park |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:393&r=env |
| By: | Simone Valente (Department of Economics, Norwegian University of Science and Technology); Luca Bretschger (Center of Economic Research, ETH Zürich) |
| Abstract: | We study the incentives of selfish governments to tax tradable primary inputs under asymmetric trade. Using an empirically-consistent model of endogenous growth, we obtain explicit links between persistent gaps in productivity growth and the observed tendency of resource-exporting (importing) countries to subsidize (tax) domestic resource use. Assuming uncoordinated maximization of domestic welfare, national governments wish to deviate (i) from inefficient laissez-faire equilibria as well as (ii) from efficient equilibria in which domestic distortions are internalized. The incentive of resource-rich countries to subsidize hinges on slower productivity growth and is disconnected from the typical incentive of importers to tax resource inflows i.e., rent extraction. The model predictions concerning the impact of resource taxes on relative income shares are supported by empirical evidence. |
| Keywords: | Productivity Growth, Exhaustible Resources, International Trade. |
| JEL: | F43 O40 |
| Date: | 2013–11–22 |
| URL: | http://d.repec.org/n?u=RePEc:nst:samfok:15313&r=env |
| By: | Ansink, Erik; Weikard, Hans-Peter |
| Abstract: | In a river claims problem, agents are ordered linearly, and they have both an initial water endowment as well as a claim to the total water resource. We provide characterizations of two solutions to this problem, using Composition properties which have particularly relevant interpretations for the river claims problem. Specifically, these properties relate to situations where river flow is uncertain or highly variable, possibly due to climate change impacts. The only solution that satisfies all Composition properties is the `Harmon rule' induced by the Harmon Doctrine, which says that agents are free to use any water available on their territory, without concern for downstream impacts. The other solution that we assess is the `No-harm rule', an extreme interpretation of the no-harm principle from international water law, which implies that water is allocated as far downstream as possible. In addition to characterizing both solutions, we show their relation to priority rules and sequential sharing rules. |
| Keywords: | river claims problem; sharing rule; Harmon Doctrine; composition axioms; water allocation |
| JEL: | C71 D63 Q25 |
| Date: | 2013–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:51618&r=env |
| By: | Ange Nsouadi; Jules Sadefo Kamdem; Michel Terraza |
| Abstract: | La relation entre le Système Communautaire d’Echange de Quotas d’Emission (SCEQE) et le Mecanisme de Développement Propre (MDP) intéresse aujourd’hui de nombreux pays du monde. Le MDP est considéré comme l’un des principaux outils qui permet aux pays d’augmenter leur rentabilité et de s’acquiter de leurs obligations de conformité issues du protocole de kyoto. Il est considéré, de plus, comme un moyen rentable pour répondre au changement climatique. L’existence d’une relation entre le SCEQE et le MDP peut conduire à une baisse du prix du quota carbone européen et également à une réduction des coûts de conformités. Pour mésurer la nature de cette relation, nous analysons les différentes intéractions qui peuvent exister entre le marché Européen de quota carbone (EUA : European Union Allowance) et celui du crédit carbone (CER: Certified Emission Reduction). [...] |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:lam:wpaper:13-12&r=env |
| By: | Stefano Bosi; David Desmarchelier; Lionel Ragot |
| Abstract: | Some recent empirical contributions have pointed out a significant negative impact of pollution on labor supply. These impacts have been largely ignored in the theoretical literature, which, instead, focused on the case of pollution effects on consumption demand. In this paper, we study the short and long-run effects of pollution in a Ramsey model where pollution and labor supply are nonseparable arguments in households’ preferences. We determine sufficient conditions for existence and uniqueness of a longterm equilibrium and we show how large (negative) effects of pollution on labor supply may promotes macroeconomic volatility (deterministic cycles near the steady state) through a flip bifurcation. |
| Keywords: | pollution, endogenous labor supply, Ramsey model. |
| JEL: | E32 O44 |
| Date: | 2013–11–02 |
| URL: | http://d.repec.org/n?u=RePEc:eus:ce3swp:0513&r=env |
| By: | Radu, Laura-Diana |
| Abstract: | The evolution of the information and communication technologies (ICTs) and the increase of the role given to environment in society have led to the widening of the green ICT concept. The way in which they can contribute to the improvement of life conditions, as related to the ecosystem, depends only on the interest and involvement of people, companies and state, directly or indirectly, influenced on their turn by the living standards, education and others. This paper aims to identify the way in which producers, consumers and regulatory authorities can contribute to the promotion and implementation of the green ICT concept, as well as its main influences on the environment and the society. |
| Keywords: | green, ICT, e-waste, environment, non-renewable resources, innovation |
| JEL: | O3 |
| Date: | 2013–06–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:51532&r=env |
| By: | Masha Maslianskaia-Pautrel |
| Abstract: | This paper investigates how the hedonic equilibrium is modified when discrete consumer heterogeneity with horizontal differentiated housing supply is assumed. Our results are threefold. First, discrete consumer heterogeneity leads to a segmentation of the hedonic price function at equilibrium and the discontinuity of the implicit price of environmental quality on the borders of the segments. Second, we demonstrate that horizontal differentiation can lead to a partial sorting of consumer demand for housing attributes at hedonic equilibrium. Finally, we show that according to model specification, the groupwise heterogeneity with horizontal differentiation can lead to modification of welfare assessment related to changes in environmental quality. |
| Keywords: | Hedonic model, Discrete consumer heterogeneity, Horizontal differentiation, Locational choice |
| JEL: | R21 R31 Q51 |
| Date: | 2013–10–09 |
| URL: | http://d.repec.org/n?u=RePEc:eus:ce3swp:0313&r=env |
| By: | Felix Ebeling |
| Abstract: | We conducted a large scale field experiment to test whether framing a voluntary contribution decision with different non-binding defaults affect people's behavior. On an electricity provider's website, we manipulated non-binding green energy defaults in electricity contract offers. The default was either green or non-green. Buying green is costly and protects the environment. Hence, it is a voluntary contribution to a public good. Our core results are: First, defaults have a strong effect on contributions. 69% of new customer buy green, when the default was green, but only 7% when the default was nongreen. Second, the fraction of website visitors signing an electricity contract is similar across treatments. Third, regional election results affect green energy choice of customers. |
| Keywords: | Framing, Defaults, Public Goods, Randomized Field Experiments |
| JEL: | D03 D12 Q4 |
| Date: | 2013–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:kls:series:0066&r=env |
| By: | World Bank |
| Keywords: | Finance and Financial Sector Development - Access to Finance Environmental Economics and Policies Private Sector Development - Emerging Markets Finance and Financial Sector Development - Debt Markets Finance and Financial Sector Development - Financial Literacy Environment |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:16302&r=env |
| By: | Fardoust, Shahrokh; Dhareshwar, Ashok |
| Abstract: | Countries and international organizations working on longer-range development issues depend on long-term quantitative projections and scenario analysis. Such forecasting has become increasingly challenging, thanks to the rapid pace of globalization, technological progress, the interplay among them, and enhanced connectivity among people. As a result, seemingly isolated events can quickly lead to wide-ranging and lasting regional or even global consequences. This paper examines the problem of long-term economic forecasting in the face of increased complexity and uncertainty. With the benefit of hindsight, it scrutinizes past long-term qualitative and quantitative projections for the 1990s in order to draw lessons on how an institution can and should conduct long-term forecasting and policy analysis. The main conclusions are that policy makers and researchers across the world urgently need to see the big picture if they are to deal with the specific challenges and opportunities they will face over the long term as economies and global linkages undergo major structural changes under conditions of considerable uncertainty and volatility. Global institutions need to have strong research programs that work in close collaboration with other international organizations, academic centers, and independent experts on important long-term development issues ("blue sky"issues) and megatrends. These institutions need to build on their comparative strengths and form teams of in-house researchers and global experts who work on state-of-the-art models related to globalization, technological progress and innovations, climate change, demographic shifts, population, and labor force quality and their policy implications at both the global and country levels. Researchers should be encouraged to consider how global challenges such as financial crises, climate change, and infectious diseases can lead to breaks in economic trends and regime change and how such breaks affect economic activity. Alternative scenarios need to be created that incorporate the views of contrarian forecasters, including forecasts of possible shocks. |
| Keywords: | Environmental Economics&Policies,Economic Theory&Research,Emerging Markets,Currencies and Exchange Rates,Banks&Banking Reform |
| Date: | 2013–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6705&r=env |
| By: | Berge, Erling (Centre for Land Tenure Studies, Norwegian University of Life Sciences); Sigrid Haugset, Anne (Trøndelag R&D Institute) |
| Abstract: | More than 200 years after the King sold one of the “King’s commons” (Follafoss, located in the current Verran municipality) to urban timber merchants, local people in some ways still behave as if the area is a kind of commons. The paper will outline the history of the transformation of the area from an 18th century King’s commons to a 21th century battleground for ideas about ancient access and use rights of community members facing rights of a commercial forest owner and the local consequences of national legislation. This battleground will be illuminated by the answers that current users provide to questions about what they believe their rights of access and use are. We shall in particular look for differences between what people believe and what the law seems to say about rights and duties in the Follafoss area. |
| Keywords: | King’s commons; private forest; rights of common; customary rights; national legislation; loss of customary rights; |
| JEL: | P48 Q15 |
| Date: | 2013–11–18 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nlsclt:2013_013&r=env |
| By: | Peter A. Groothuis; Kristan Cockerill; Tanga M. Mohr |
| Abstract: | Even in historically water-rich areas, population growth and drought put pressure on water supplies. Understanding public attitudes about water management and, especially water conservation, may become increasingly salient as these regions attempt to address water supply issues. Using the contingent valuation method we estimate the willingness to pay for water conservation measures. Our analysis finds that younger individuals, individuals with higher education and higher income are more likely to say they are willing to pay for these measures. We also find that people who are on municipal water or a shared well are willing to pay more for public water conservation measures than individuals who have their own well or access to a spring. In addition we find that older individuals and respondents who have ancestors in the area are less willing to pay for water conservation methods. Lastly, using bivariate probit analysis that focuses on averting behavior expenditures and our contingent valuation question, we find that there are some unmeasured characteristics of respondents that make them more likely to participate in private ‘averting behavior’ and increase their willingness to pay for water conservation measures. Key Words: economics |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:apl:wpaper:13-26&r=env |
| By: | Stefan Behringer; Thorsten Upmann |
| Abstract: | In this paper we investigate optimal harvesting of a renewable natural resource. While in the standard approach the resource is located at a single point in space we allow for the resource to be distributed over the plane. Consequently, an agent who exploits the resource has to travel from one location to another. For a fixed planning horizon we investigate the speed and the time path of harvesting chosen by the agent. We show that the agent adjusts the speed of movement so that he visits each location only once, even in the absence of travelling cost. Since he does not come back to any location for a second harvest, it is optimal for him to fully deplete the resource upon arrival. A society interested in conserving some of the resource thus has to take measures to limit the exploitative behaviour of the agent. |
| Keywords: | Optimal harvesting; spatial renewable resource; continuous time; market failure |
| JEL: | Q20 Q28 D21 C61 |
| Date: | 2013–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:eus:ce3swp:0113&r=env |
| By: | Clarke, George; Li, Yue; Xu, Lixin Colin |
| Abstract: | Based on a comprehensive worldwide firm survey, this paper looks at how the business environment and economic agglomeration affect job creation, holding constant conventional determinants of firm growth, such as firm ownership, size, and age. The analysis finds that economic agglomeration is most important, especially modern telecommunications, access to export markets, concentration of economic activity in large cities, and capacity agglomeration (the concentration of large firms in a city). Although the business environment affects job growth less than agglomeration does, some elements of the business environment matter, such as labor flexibility, unionization, and local skill levels. There is strong heterogeneity in job creation across firm size and age. |
| Keywords: | Environmental Economics&Policies,Microfinance,Labor Markets,Private Participation in Infrastructure,Banks&Banking Reform |
| Date: | 2013–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6706&r=env |