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on Environmental Economics |
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Issue of 2015‒06‒20
fifty-four papers chosen by Francisco S. Ramos Universidade Federal de Pernambuco |
| By: | Krupnick, Alan (Resources for the Future); Darmstadter, Joel (Resources for the Future); Richardson, Nathan (Resources for the Future); McLaughlin, Katrina (Resources for the Future) |
| Abstract: | US policy to limit greenhouse gas emissions is currently driven, in part, by the US Environmental Protection Agency’s proposed Clean Power Plan, which seeks a drop in carbon dioxide (CO2) emissions from fossil-fueled power plants—a “downstream” approach to regulation. Here, we consider an alternative, or possibly complementary, regulatory perspective - What is the legal and economic feasibility of imposing an “upstream” CO2 charge on coal production at its extraction site? Specifically, our focus is on leased coal from federal lands managed by the Bureau of Land Management (BLM). Such a carbon charge is designed, in principle, to embody the cumulative “lifecycle” externalities from coal mining to combustion (or other “downstream” utilization). Our legal analysis concludes that BLM has the statutory and regulatory authority to impose such a charge and that it would be best to add it to the royalty rate. But a large fee that would dramatically reduce revenues could invite judicial concern. The economic case is weaker than the legal case because production on state, private, and tribal lands (60 percent of total production) would not be subject to the charge and so could ramp up in response to the economic disadvantage the charge would cause for coal on federal lands, among other reasons. Best would be a comprehensive set of charges on royalties for all fossil fuels, irrespective of ownership. |
| Keywords: | carbon taxes, coal, climate change, pollution strategies, emissions reductions |
| JEL: | Q30 Q52 Q54 |
| Date: | 2015–03–30 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-15-13&r=env |
| By: | Simon Dietz; Christian Gollier; Louise Kessler |
| Abstract: | Reducing emissions of CO2 today is expected to reduce climate damages in the future. In this paper, we examine the question of whether fighting climate change has the additional advantage of reducing the aggregate risk borne by future generations. This raises the question of the ‘climate beta’, i.e. the elasticity of climate damages with respect to a change in aggregate consumption. Using the DICE integrated assessment model, we show that the climate beta is positive and close to unity, due above all to the effect of uncertainty about technological progress. In estimating the social cost of carbon, this justifies using a relatively larger rate to discount expected climate damages. On the other hand, expected climate damages are themselves made larger by this effect and overall the NPV of emissions reductions today is increased by the climate beta. |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp190&r=env |
| By: | Ibrahim BAKIRTAS (AKSARAY UN); Mumin Atalay CETIN (AKASARAY UNIVERSITY) |
| Abstract: | Most because of the rapidly increasing world population, the world energy demand has also increased year by year. Unfortunately, that energy demand has satisfied with an energy sources such as oil, natural gas and coal that can’t be sustainable. In this regard the extensive and rapidly increasing use of fossil fuels is concieved as a main reason both of the climate change and global warming. On the other hand the relationship between economic growth and environmental pollution is frequently investigated by researchers in the economic literature. The main theoretical proposition of this relationship named as Environmental Kuznets Curve (EKC) hypothesis by researchers. According to this hypothesis, at the early stages of economic development, governments and citizens are rarely aware of the environmental problems and environmental friendly energy sources such as renewable energy that is not so profitable to use because of its high investment costs. Afterwards, along with per capita income increase, environmental pollution increases to the beyond of the ecological threshold level. In that point, environmental quality improves with higher income per capita. However governments may still prefer to consume mainly fossil fuel energy sources in their energy policies because of the high investment costs of the renewable energy sources. This study is aimed to investigate the relationship between renewable energy consumption per capita and income per capita in G-20 countries during 1992 and 2010 by using panel data analysis techniques. According to the analysis results, income per capita has a statistically significant (1 percent significancy) and positive impact (0.61%) on renewable energy consumption per capita in the long run. However it has found that increase in carbon dioxide emission (CO2) per capita any statistically significant impact on renewable energy consumption per capita. Concordantly coherent with the EKC hypothesis, it has found in that study that G-20 countries are prefer to consume renewable energy sources depending upon the increase in income per capita. |
| Keywords: | Environmental Kuznets Curve, Renewable Energy, Panel Data Analysis, Income, G-20 countries. |
| JEL: | Q50 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:2504081&r=env |
| By: | Dissanayake,Sahan T. M.; Beyene,Abebe Damte; Bluffstone,Randall; Gebreegziabher, Zenebe; Martinsson,Peter; Mekonnen,Alemu; Toman,Michael A.; Vieider,Ferdinand M. |
| Abstract: | This paper informs the national and international policy discussions related to the adoption of the United Nations Reducing Emissions from Deforestation and Forest Degradation Programme. Effective program instruments must carefully consider incentives, opportunity costs, and community interactions. A choice experiment survey was applied to rural Ethiopian communities to understand respondents? preferences toward the institutional structure of the program contracts. The results show that respondents have particular preferences about how Reducing Emissions from Deforestation and Forest Degradation programs are structured with regard to the manner in which the payments are divided between the households and the communities, the restrictions on using grazing land, and the level of payments received for the program. Surprisingly, restrictions on firewood collection do not significantly impact contract choice. The paper further analyzes the structure of the preferences by using attribute interaction terms and socio-demographic interaction terms. The analysis finds significant regional variation in preferences, indicating that Reducing Emissions from Deforestation and Forest Degradation should be tailored to specific regions. Finally, the marginal willingness to pay for attributes is calculated using the traditional preference space approach, as well as the more recent willingness-to-pay approach. |
| Keywords: | Economic Theory&Research,Forestry Management,Climate Change Mitigation and Green House Gases,Biodiversity,Environmental Economics&Policies |
| Date: | 2015–06–09 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7296&r=env |
| By: | Palmer, Karen (Resources for the Future); Paul, Anthony (Resources for the Future) |
| Abstract: | The US Environmental Protection Agency (EPA) has proposed regulations to reduce emissions of carbon dioxide (CO2)from existing fossil electricity generators in its proposed Clean Power Plan rule under section 111(d) of the Clean Air Act. The proposal is based on the best system of emissions reductions (BSER) and calls for states to develop plans to achieve reductions that are demonstrated to be equivalent to those attained by the application of BSER to each state. Policy options from which states may choose are not restricted - the BSER and state plans are distinct from one another. This primer describes the different types of incentive-based comprehensive policies that states could adopt and how policy design features can address particular objectives including overall cost-effectiveness, distributional consequences for electricity consumers and producers, administrative costs, and emissions of other pollutants. We also elucidate some trade-offs that state policymakers will face as they develop their plans for Clean Power Plan compliance. |
| Keywords: | tradable performance standard, climate policy, clean energy standard, cap and trade, allowance allocation |
| JEL: | Q42 Q48 Q54 Q58 |
| Date: | 2015–04–24 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-15-15&r=env |
| By: | Beyene,Abebe D.; Bluffstone,Randall; Gebreegziabher,Zenebe; Martinsson,Peter; Mekonnen,Alemu; Vieider,Ferdinand |
| Abstract: | This paper uses a randomized experimental design and real-time electronic stove use monitors to evaluate the frequency with which villagers use improved biomass-burning Mirt injera cookstoves in rural Ethiopia. Understanding whether, how much, and why improved cookstoves are used is important, because use of the improved stove is a critical determinant of indoor air pollution reductions, and reduced greenhouse gas emissions due to lower fuelwood consumption. Confirming use is, for example, a critical aspect of crediting improved cookstoves? climate change benefits under the United Nations Reducing Emissions from Deforestation and Forest Degradation Programme. The paper finds that Ethiopian households in the study area do use the Mirt stove on a regular basis, taking into account regional differences in cooking patterns. In general, stove users also use their Mirt stoves more frequently over time. Giving the Mirt stove away for free and supporting community-level user networks are estimated to lead to more use. The study found no evidence, however, that stove recipients use the stoves more if they have to pay for them, a hypothesis that frequently arises in policy arenas and has also been examined in the literature. |
| Keywords: | E-Business,Disease Control&Prevention,Energy Conservation&Efficiency,Climate Change Mitigation and Green House Gases,Energy and Environment |
| Date: | 2015–06–09 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7297&r=env |
| By: | Fanny Henriet (Paris School of Economics - Centre d'Economie de la Sorbonne); Katheline Schubert (Paris School of Economics - Centre d'Economie de la Sorbonne) |
| Abstract: | In the context of the deep contrast between the shale gas boom in the United States and the recent ban by France of shale gas exploration, this paper explores whether climate policy justifies developing more shale gas, taking into account environmental damages, both local and global, and addresses the question of a potential arbitrage between shale gas development and the transition to clean energy. We construct a Hotelling-like model where electricity may be produced by three perfectly substitutable sources: an abundant dirty resource (coal), a non-renewable less polluting resource (shale gas), and an abundant clean resource (solar). The resources differ by their carbon contents and their unit costs. Fixed costs must be paid for shale gas exploration, and before solar production begins. Climate policy takes the form of a ceiling on atmospheric carbon concentration. We show that at the optimum tightening climate policy always leads to bringing forward the transition to clean energy. We determine conditions under which the quantity of shale gas extracted should increase or decrease as the ceiling is tightened. To address the question of the arbitrage between shale gas development and the transition to clean energy, we assume that the social planner has to comply to the climate constraint without increasing energy expenditures. We show that when the price elasticity of electricity demand is low, a binding financial constraint leads to an overinvestment in shale gas and postpones the switch to the clean backstop. We calibrate the model for Europe and determine whether shale gas should be extracted, depending on the magnitude of the local damage, as well as the potential extra amount of shale gas developed because of a financial constraint, and the cost of a moratorium on extraction |
| Keywords: | Shale Gas; Global Warming; Non-renewable Resources; Energy transition |
| JEL: | H50 Q31 Q41 Q42 Q54 |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:15050&r=env |
| By: | Dominika Reckova (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nábreží 6, 111 01 Prague 1, Czech Republic); Zuzana Iršová (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nábreží 6, 111 01 Prague 1, Czech Republic) |
| Abstract: | We present a meta-regression analysis of the relation between the concentration of carbon dioxide in the atmosphere and changes in global temperature. The relation is captured by “climate sensitivity”, which measures the response to a doubling of carbon dioxide concentrations compared to pre-industrial levels. Estimates of climate sensitivity play a crucial role in evaluating the impacts of climate change and constitute one of the most important inputs into the computation of the social cost of carbon, which reflects the socially optimal value of a carbon tax. Climate sensitivity has been estimated by many researchers, but their results vary significantly. We collect 48 estimates from 16 studies and analyze the literature quantitatively. We find evidence for publication selection bias: researchers tend to report preferentially large estimates of climate sensitivity. Corrected for publication bias, the bulk of the literature is consistent with climate sensitivity lying between 1.4 and 2.3C. |
| Keywords: | Climate sensitivity, climate change, CO2, publication bias, meta- analysis |
| JEL: | Q53 Q54 C42 |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2015_14&r=env |
| By: | Steinkraus, Arne |
| Abstract: | Existing studies on Carbon Capture and Storage (CCS) only focus on costs and carbon dioxide (CO2 ) reduction that arise at the power plant and geological storage. These studies do not consider additional expenses and emissions at the input and output pathways. Consequently, we use a simulation model containing input data from different studies to estimate the cradle-to-grave costs of avoided carbon dioxide. We show that the true costs vary between 70 and 90 US-Dollars per ton of CO2 . Additional sensitivity analyses support the results because they are robust against different parameter adjustments. Because it is not evident whether CCS is an efficient mitigation option, it is compared to a variety of renewable energy sources. Thus, it is cheaper to avoid one ton of CO2 by means of wind energy, but costs arising from the use of solar energy are much higher. |
| Keywords: | CCS,Cradle-to-Grave,climate change,coal,gas,efficiency analysis |
| JEL: | Q40 Q50 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:tbswps:14&r=env |
| By: | Timilsina,Govinda R.; Tiwari,Ujjal |
| Abstract: | Nepal depends entirely on imports for meeting its demand for petroleum products, which account for the largest share in total import volume. Diesel is the main petroleum product consumed in the country and accounts for 38 percent of the total national CO2 emissions from fuel consumption. There is a general perception that the country would economically benefit if part of imported diesel is substituted with domestically produced jatropha-based biodiesel. This study finds that the economics of jatropha-based biodiesel depend on several factors, such as diesel price, yield of jatropha seeds per hectare, and availability of markets for production byproducts, such as glycerol and jatropha cake. Under the scenarios considered, jatropha biodiesel is unlikely to be economically competitive in Nepal unless seed yields per hectare are implausibly large and high returns can be obtained from byproduct markets that do not yet exist. In the absence of byproduct markets, even earnings from a carbon credit do not help jatropha biodiesel to compete with diesel unless the credit value exceeds US$50/tCO2 (which is well above current values) and jatropha seed yield is at or above the midrange of the scenarios considered. Declines in diesel prices from the levels observed in 2009?13 only compound the economic competitiveness issue. |
| Keywords: | Energy Production and Transportation,Economic Theory&Research,Renewable Energy,Climate Change Mitigation and Green House Gases,Environmental Economics&Policies |
| Date: | 2015–06–08 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7295&r=env |
| By: | Grebel, Thomas; Stützer, Michael |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:tuiedp:90&r=env |
| By: | Vinicius A. Vale; Fernando S. Perobelli, Ariaster B. Chimeli |
| Abstract: | This paper investigates the mechanics of international trade and CO2 emissions in two blocs of countries (“North” and “South”) by analyzing data from the World Input-Output Database. We use and adapt the Miyazawa technique to estimate the linkages between international trade and the environment at a global scale, a contribution that to our best knowledge has not yet appeared in the literature. Our results suggest that both the North and the South have become less pollution intensive (technique effect) over the years. Interestingly and in contrast to much of the literature, we also find support to the hypothesis that the South has specialized in relatively more pollution intensive activities (composition effect). |
| Keywords: | CO2 Emissions; International Trade; Input-Outout tables; Miyazawa Multiplier |
| JEL: | Q56 Q53 F18 C67 |
| Date: | 2015–06–10 |
| URL: | http://d.repec.org/n?u=RePEc:spa:wpaper:2015wpecon11&r=env |
| By: | Ekaterina Gavenas; Knut Einar Rosendahl; Terje Skjerpen (Statistics Norway) |
| Abstract: | Emissions from oil and gas extraction matter for the lifecycle emissions of fossil fuels, and account for significant shares of domestic emissions in many fossil fuel exporting countries. In this study we investigate empirically the driving forces behind CO2-emission intensities of Norwegian oil and gas extraction, using detailed field-specific data that cover all Norwegian oil and gas activity. We find that emissions per unit extraction increase significantly as a field’s extraction declines. Moreover, emission intensities increase significantly with a field’s share of oil in total oil and gas reserves. We also find some indication that oil and CO2-prices may have influenced emission intensities on the Norwegian continental shelf. |
| Keywords: | CO2-emissions; Oil and gas extraction; Panel data estimation. |
| JEL: | C23 L71 Q54 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:806&r=env |
| By: | James B. Bushnell; Stephen P. Holland; Jonathan E. Hughes; Christopher R. Knittel |
| Abstract: | Flexibility in environmental regulations can lead to reduced costs if it allows additional abatement from lower cost sources or if policy tailoring and experimentation across states increases regulatory efficiency. The EPA's 2014 Clean Power Plan, which implements greenhouse gas regulation of power plants under the Clean Air Act, allows substantial regulatory flexibility. The Clean Power Plan sets state-level 2030 goals for emissions rates (in lbs CO2 per MWh) with substantial variation in the goals across states. The Clean Power Plan allows states considerable flexibility in attaining these goals. In particular, states can choose whether to implement the rate standards goals or equivalent mass-based goals (i.e., emissions cap and trade, CAT). Moreover, states can choose whether or not to join with other states in implementing their goals. We analyze incentives to adopt inefficient rate standards versus efficient CAT standards using both analytical and simulation models. We have five main results. First, we theoretically show that industry supply can be efficient under both CAT regulation and rate-based regulation. However, under rate-based standards the carbon price must equal the social cost of carbon and the rate standard must be equal across all the states. Second, we illustrate important differences in the incentives of a unified coalition of states and the incentives of a single state. Third, our simulation results show that when states fail to coordinate on a policy, the merit order can be ``scrambled'' quite dramatically leading to significant inefficiencies. Fourth, the Nash equilibrium of a game between coastal and inland western states is an inefficient policy for consumers and an uncoordinated policy for generators. Finally, we show that how new plants are treated under the Clean Power Plan has large effects on the scale and location of entry. |
| JEL: | L5 L9 Q48 Q54 |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21259&r=env |
| By: | Victor M. Peredo-Alvarez (Biological and Environmental Sciences, University of Stirling); Allen S. Bellas (College of Management, Metropolitan State University); Ian Lange (Division of Economics and Business, Colorado School of Mines) |
| Abstract: | Steam-based electrical generating plants use large quantities of water for cooling. The potential environmental impacts of water cooling systems have resulted in their inclusion in the Clean Water Act's (CWA) Sections 316(a), related to thermal discharges and 316(b), related to cooling water intake. The CWA mandates a technological standard for water cooling systems. This analysis examines how the performance-adjusted rates of thermal emissions and water withdrawals for cooling units have changed over their vintage and how these rates of change were impacted by imposition of the CWA. Though technology standards are believed to hinder technological progress, results show that progress occurred for cooling systems installed after the CWA and no progress occurred previous to it. |
| Keywords: | Water Withdrawals, Thermal Pollution, Innovation, Environmental Policy |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:mns:wpaper:wp201505&r=env |
| By: | Ekaterina Sherstyuk (University of Hawaii at Manoa, Department of Economics); Nori Tarui (University of Hawaii at Manoa, Department of Economics); Majah-Leah 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 intergenerational 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, increased strategic uncertainty of the intergenerational setting may lead to an increased inconsistency of own actions and beliefs about the others, making own actions more myopic. Access to history and advice from previous generations may improve dynamic efficiency, but may also facilitate coordination on non-cooperative action paths. |
| Keywords: | Economic experiments, dynamic externalities, intergenerational games, climate change |
| JEL: | C92 D62 D90 Q54 |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:hai:wpaper:201509&r=env |
| By: | Divya Datt (Centre for International Trade and Development,Jawaharlal Nehru University; Centre for International Trade and Development,Jawaharlal Nehru University) |
| Abstract: | The paper explores the potential effect of intergovernmental grants (IGG) on sub-national (local) environmental policy in a federal structure. In the model, a politically-inclined local government receives campaign contributions from the polluters' lobby in return for lower pollution taxes. A benevolent federal government uses IGG as an incentive to reduce the resulting distortion in the local pollution tax. IGG are formulaic transfers that are conditional on pollution levels - lower pollution in a sub-national jurisdiction relative to others translates into a higher share of the grant and vice versa. In equilibrium, the grant effect reduces the distortion created in the pollution tax by the lobby effect, and may even lead to a higher than Pigouvian tax when the local government assigns a large enough weight on social welfare and/or when the grant is large enough. Further, IGG result in the tax levels of jurisdictions becoming interdependent in an interesting way. Environmental policies in two jurisdictions may become strategic complements or substitutes depending on their relative pollution levels. The possibility of strategic substi- tution implies that federal welfare may not increase even when environmental policy becomes stricter in one state. |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ind:citdwp:15-02&r=env |
| By: | Victor Moutinho (CEFAGE-UE and Department of Economics, Management and Industrial Engineering, University of Aveiro); José Manuel Xavier (ISCIA); Pedro Miguel Silva (Department of Economics, Management and Industrial Engineering, University of Aveiro) |
| Abstract: | This study breaks down carbon emissions into six effects within the European group - EU-15 countries – and analyses their evolution before and after the Kyoto Protocol in order to determine which of them has more impact in the intensity of emissions in those countries. The 'complete decomposition' technique was used to examine the CO2 emissions and its components: carbon intensity,(CI effect), the changes in fossil fuels consumption towards total energy consumption,(EM effect), the change in energy intensity effect,(EG effect), the average renewable capacity productivity (GC effect), the change in capacity of renewable energy per capita (CP effect), and the change in population, (P effect). It is shown that in both periods (before and after Kyoto protocol) for Germany, Denmark and Sweden reductions in CO2 emissions; in particular, with higher levels of differentiation in Germany and Sweden, before Kyoto commitment, it was explained by the predominance of negative effects on the negative variations of three effects decomposed. In the post Kyoto period there is even a greater differential in the negative changes in CO2 emissions, which were caused by the negative contribution of the intensity variations of the effects EM, GC, CP and P that exceeded the positive changes occurred in CI and EG effects. It seems also important to stress the fluctuations in CO2 variations before and after Kyoto, turning positive changes to negative changes, especially in France, Italy and Spain. |
| Keywords: | Decomposition analysis; Emissions intensity; European Countries; Renewables capacity. |
| JEL: | C29 Q47 Q52 Q57 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:cfe:wpcefa:2014_17&r=env |
| By: | Jinhoa Lee (Hankuk University of Foreign Studies) |
| Abstract: | The relationships between environmental quality, energy use and economic output have created growing attention over the past decades among researchers and policy makers. Focusing on the empirical aspects of the role of carbon dioxide (CO2) emissions and energy use in affecting the economic output, this paper is an effort to fulfill the gap in a comprehensive case study at a country level using modern econometric techniques. To achieve the goal, this country-specific study examines the short-run and long-run relationships among energy consumption (using disaggregated energy sources: petroleum products and the direct combustion of crude oil, natural gas, and electricity), CO2 emissions and gross domestic product (GDP) for Saudi Arabia using time series analysis from the year 1980-2010. To investigate the relationships between the variables, this paper employs the Augmented Dickey-Fuller (ADF) and the Phillips–Perron (PP) unit root tests for stationarity, Johansen maximum likelihood method for cointegration and a Vector Error Correction Model (VECM) for both short- and long-run causality among the research variables for the sample. All the independent variables in this study show very strong significant effects on the GDP in the country for the long term. The long-run equilibrium in the VECM suggests negative long-run causalities from the CO2 emissions and the consumption of petroleum products and the direct combustion of crude oil to the GDP. Conversely, positive impacts of the natural gas use and the electricity consumption on the GDP found to be significant in Iraq during the period. In the short run, there also exists a negative unidirectional causality running from the GDP to the electricity consumption. The results partly support and also partly deny the conventional arguments that there is a short-run positive effect from environmental quality and energy use on economic output but they eventually reduce economic output in the long run. Overall, this study found that the associations could to be differed by the sources of energy in the case of Saudi Arabia over of period 1980-2010. |
| Keywords: | CO2 emissions, energy consumption, GDP, Saudi Arabia, time series analysis |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:2504257&r=env |
| By: | Guy Robinson (University of South Australia) |
| Abstract: | This paper focuses on one of the key challenges facing farming communities around the world, namely how to adapt to changes in climate that can threaten farming livelihoods. The paper draws upon two detailed studies in South Australia where farmers have long been accustomed to dealing with issues of water shortage and very high temperatures. However, recent modelling predicts increased severity of drought and more incidences of extreme heat in some of the prime farming districts in the state. Farmers are already commenting on seasonal changes to water availability and to variations in the timing and duration of very hot weather. The two studies have examined ways in which farmers are reacting to these changes in weather and climate, firstly using in-depth interviews with a small sample to look specifically at their attitudes towards spells of excessive heat, and second, focusing on adaptations being made in their farming systems. The latter study involved semi-structured interviews with formal institutions, e.g. government agencies, and communities of practice, e.g. farm systems groups, within two major regions in South Australia. Members from both groups interviewed in the second study noted that farmers autonomously adapt to a variety of risks, including those induced by climate variability; however, the types and levels of adaptation varied among individuals as a result of different barriers to adaptation. The lack of communication and engagement processes established between formal institutions and communities of practice was one such barrier. The paper presents and discusses a model for transferring knowledge and information on climate change among formal institutions, communities of practice, trusted individual advisers and rural landholders, and for supporting the co-management of climate change across multiple groups in agricultural areas in South Australia and elsewhere. The prevalence of particular views held by farmers about heat and drought need to be addressed by policy makers if specific types of adaptation are being promoted. |
| Keywords: | climate change, farmers, formal institutions, communities of practice |
| JEL: | Q54 Q56 Q15 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:2503317&r=env |
| By: | Laure Kuhfuss (Department of Geography and Sustainable Development, University of St. Andrews); Raphaële Préget (INRA, UMR 1135 LAMETA, F-34000 Montpellier, France); Sophie Thoye (Montpellier SupAgro, UMR 1135 LAMETA, F-34000 Montpellier, France); Nick Hanley (Department of Geography and Sustainable Development, University of St. Andrews); Philippe Le Coent (Université Montpellier 1, UMR 5474 LAMETA, F-34000 Montpellier, France); Mathieu Désolé (Montpellier SupAgro, UMR 1135 LAMETA, F-34000 Montpellier, France) |
| Abstract: | The permanence of land management practices adopted under Agri-environmental schemes (AES) is often questioned. This paper investigates the drivers of farmers’ decision to maintain or not the adopted practices beyond the duration of the contract, and especially the effect of social norms and framing on this decision. Our results, based on the stated intentions of 395 farmers, show that pecuniary but also non-pecuniary motivations drive farmers’ decision, which is significantly influenced by information about the social norm. These results lead to recommendations for “nudging” farmers, by conveying information to them on other farmers’ decisions concerning pro-environmental land management practices. |
| Keywords: | Agri-environmental schemes, Permanence, Framing, Social norms |
| JEL: | Q18 Q28 |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:sss:wpaper:2015-15&r=env |
| By: | Alina Averchenkova; Florence Crick; Adriana Kocornik-Mina; Hayley Leck; Swenja Surminski |
| Abstract: | Adapting to climate change requires the engagement of all actors in society. Until recently, predominant research focus has been on governments, communities and the third sector as key actors in the adaptation process. Yet, there is a growing emphasis internationally on understanding the role of and the need to engage businesses in adaptation given their potential to finance projects, develop and deploy technologies and innovative solutions, and enhance the scale and cost-effectiveness of certain adaptation measures. Already, many multinational corporations (MNCs) are purportedly beginning to take steps to adapt their operations to climate change. Some stated reasons for their engagement include minimising potential impacts on their supply chains, improving resource efficiency, enhancing the production and use of sustainable raw materials, and supporting customers’, suppliers’ and communities’ efforts to adapt to climate change. However, there is a paucity of work analysing adaptation actions by MNCs, their motivations and contribution to broader adaptation and climate resilient development efforts, as well as possible instances of maladaptation. We apply a three-tier framework on drivers, responses and outcomes to examine the state of knowledge according to recent literature on private sector and MNC adaptation to climate change. Our review highlights that the literature on the impact and outcomes of MNC adaptation actions is considerably sparse and we consider the implications for future research. Our analysis concludes with a reflection on the relevance of MNC-led adaptation – for the companies themselves, for policy-makers at all scales, as well as for society at large. |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp183&r=env |
| By: | L. Lambertini; J. Poyago-Theotoky; A. Tampieri |
| Abstract: | We examine the relationship between competition and innovation in an industry where production is polluting and R&D aims to reduce emissions (“green” innovation). We present an n-firm oligopoly where firms compete in quantities and decide their investment in “green” R&D. When environmental taxation is exogenous, aggregate R&D investment always increases with the number of firms in the industry. Next we analyse the case where the emission tax is set endogenously by a regulator (committed or time-consistent) with the aim to maximise social welfare. We show that an inverted-U relationship exists between aggregate R&D and industry size under reasonable conditions, and is driven by the presence of R&D spillovers. |
| JEL: | Q55 Q56 O30 L13 |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:bol:bodewp:wp1013&r=env |
| By: | Hasegawa, Makoto; Salant, Stephen (Resources for the Future) |
| Abstract: | We review the literature on bankable emission permits, which has developed over the last two decades. Most articles analyze either theoretical or simulation models. The theoretical literature considers the problem of minimizing the discounted sum of social costs and the possibility of decentralizing the solution through competitive permit markets. In some cases, authors do not explicitly consider pollution damages but instead assume that the planner's goal is to minimize the discounted social cost of reducing cumulative emissions by a given amount. In other cases, authors do not explicitly consider an emissions reduction target but assume that the goal is to minimize the discounted sum of pollution damages and abatement costs. Simulations permit evaluation of alternative government policies under uncertainty. We conclude by pointing out directions for future work. |
| Date: | 2015–05–26 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-15-20&r=env |
| By: | Muhammad Shahbaz; Mita Bhattacharya; Khalid Ahmed |
| Abstract: | Australia has sustained a relatively high economic growth rate since the 1980s compared to other developed countries. Per capita CO2 emissions tend to be highest amongst OECD countries, creating new challenges to cut back emissions toward international standards. This study explores the dynamics of economic growth, CO2 emissions (including energy consumption), population growth and globalisation (an index of openness). Our contributions toward the literature in an Australian context are the following. First, we employ a newly developed cointegration test by Bayer-Hanck (2013) to establish the long-term dynamics between CO2 emissions and growth in the presence of population growth and trade openness. Second, we find economic growth is not emissions intensive, while energy consumption is emissions intensive. Third, in an environment of increasing population, Australia needs to be energy efficient at the household level, creating appropriate infrastructure for sustainable population growth. Finally, open trade environments have been conducive to combating emissions. Our findings advocate for continued investment in alternative energy sources, particularly renewables and green technologies, as well as the development of proper infrastructure to reduce per capita energy consumption. |
| Keywords: | growth, energy, population growth, globalisation, emissions |
| JEL: | O13 Q30 Q32 C12 C23 |
| Date: | 2015–02 |
| URL: | http://d.repec.org/n?u=RePEc:mos:moswps:2015-12&r=env |
| By: | Muhammad Shahbaz; Mita Bhattacharya; Khalid Ahmed |
| Abstract: | Australia has sustained a relatively high economic growth rate since the 1980s compared to other developed countries. Per capita CO2 emissions tend to be highest amongst OECD countries, creating new challenges to cut back emissions toward international standards. This study explores the dynamics of economic growth, CO2 emissions (including energy consumption), population growth and globalisation (an index of openness). Our contributions toward the literature in an Australian context are the following. First, we employ a newly developed cointegration test by Bayer-Hanck (2013) to establish the long- term dynamics between CO2 emissions and growth in the presence of population growth and trade openness. Second, we find economic growth is not emissions intensive, while energy consumption is emissions intensive. Third, in an environment of increasing population, Australia needs to be energy efficient at the household level, creating appropriate infrastructure for sustainable population growth. Finally, open trade environments have been conducive to combating emissions. Our findings advocate for continued investment in alternative energy sources, particularly renewables and green technologies, as well as the development of proper infrastructure to reduce per capita energy consumption. |
| Keywords: | growth, energy, population growth, globalisation, emissions |
| JEL: | O13 Q30 Q32 C12 C23 |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:mos:moswps:2015-23&r=env |
| By: | Davide Consoli (INGENIO CSIC-UPV, Valencia (Spain)); Giovanni Marin (IRCrES-CNR, Milano (Italy); OFCE-SciencesPo, Sophia Antipolis (France)); Alberto Marzucchi (Catholic University of Milan (Italy), SPRU, University of Sussex, Brighton (UK)); Francesco Vona (OFCE-SciencesPo, Sophia Antipolis (France), SKEMA Business School, Sophia Antipolis (France)) |
| Abstract: | This paper elaborates an empirical analysis of labour force characteristics associated to environmental sustainability. Using data on the United States we compare green and non-green occupations to detect differences in terms of skill content and of human capital. Our empirical profiling reveals that green jobs use high-level abstract skills significantly more than non-green jobs. Moreover, green occupations exhibit higher levels of education, work experience and on-the-job training. While preliminary, this exploratory exercise calls attention to an underdeveloped theme, namely the labour market implications associated with the transition towards green growth. |
| Keywords: | Skills, Green Jobs, Task Model, Human Capital |
| JEL: | J21 J24 O31 O33 Q20 Q40 |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:1015&r=env |
| By: | Gordon, Hal (Resources for the Future); Burtraw, Dallas (Resources for the Future); Williams, Roberton (Resources for the Future) |
| Abstract: | Carbon policies introduce potentially uneven cost burdens. Anticipating these outcomes is important for policymakers seeking to achieve an equitable outcome and can be politically important as well. This paper describes the details of a microsimulation model that utilizes the price and quantity changes predicted by economic models of carbon policies to make an estimation of economic incidence by income quintile or state, and potentially across other dimensions. After taking as inputs the aggregate output from partial or general equilibrium economic modeling, the microsimulation model uses data from the Consumer Expenditure Survey (CE), the State Energy Data System (SEDS), the National Income and Product Accounts (NIPA), estimations from the Congressional Budget Office (CBO), and the Haiku electricity model. These data sources are used to estimate the share of consumer and producer surplus changes that accrue to households in each income quintile and state. The model is unique among existing incidence models in its ability to drill down to the level of state incidence and to plug into a wide range of economic models. |
| Keywords: | carbon price, carbon tax, emissions tax, cap and trade, distributional effects, equity, efficiency, incidence |
| JEL: | H22 H23 Q52 Q54 |
| Date: | 2015–02–26 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-14-40&r=env |
| By: | Blackman, Allen (Resources for the Future); Alpizar, Francisco; Carlsson, Fredrik; Rivera Planter, Marisol |
| Abstract: | Little is known about the cost of environmental regulations such as residential zoning restrictions and recycling mandates that target households instead of firms, partly because of significant methodological and data challenges. We use a survey-based approach, the contingent valuation method, to measure the costs of Mexico City’s Day Without Driving program, which seeks to stem pollution and traffic congestion by prohibiting vehicles from being driven one day each week. To our knowledge, ours is the first study of an actual regulation to use this approach. We find that the Mexican program’s costs are substantial: up to US $103 per vehicle per year, about 1 percent of drivers’ annual income. Recent research has questioned whether programs for driving restrictions in Mexico City and several other megacities actually have environmental benefits. Our results suggest that whatever benefits these programs may have, they can be quite costly. |
| Keywords: | contingent valuation, driving restrictions, regulatory cost |
| JEL: | Q52 R48 O18 |
| Date: | 2015–05–28 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-15-21&r=env |
| By: | Marcello Tonelli (Australian Centre of Entrepreneurship Research (ACE) - Business School, Queenslands University of Technology); Nicolò Cristoni (WorlDynamics Pty Ltd) |
| Abstract: | There is strong evidence across the media that humanity has finally come to recognize the certainty and imminence of a global environmental crisis due to man-triggered ecological alterations. This widespread recognition of what is happening around us has matured even further as studies acknowledging that everything on Earth is interconnected begin to mount across various branches of learning. The appreciation of this simple linear and two-dimensional relationship implies enormous consequences for economic and management studies, as alternative business models will eventually have to supersede the old practices that still govern major industry sectors (e.g. energy, cement, agriculture, automotive, pharmaceutical, etc.). This paper argues that traditional knowledge found in developing countries can sometimes harness the potential of sparking genuine alternatives to established business practices. With a focus on the most fundamental geochemical cycles on Earth |
| Keywords: | Developing countries, geochemical cycles, environmental changes, interconnectedness, traditional knowledge. |
| JEL: | Q01 Q51 Q54 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:2503903&r=env |
| By: | Leard, Benjamin (Resources for the Future); Roth, Kevin |
| Abstract: | We exploit random daily variation in weather to document the relationship of temperature, rainfall, and snowfall with traffic accidents and travel demand. Using information on 46.5 million accidents from the State Data System of police reported accidents for 20 states and travel demand for 207,455 households included in the National Household Transportation Survey, we find unanticipated effects of weather on accidents and their severity. Our estimates suggest that while warmer temperatures and reduced snowfall are associated with a moderate decline in non-fatal accidents, they are also associated with a significant increase in fatal accidents. This increase in fatalities is due to a robust positive relationship between fatalities and temperature. Half of the estimated effect of temperature on fatalities is due to changes in the exposure to pedestrians, bicyclists, and motorcyclists as temperatures increase. The application of these results to middle-of-the-road climate predictions suggests that weather patterns for the end of the century would lead to 603 additional fatalities per year. Between 2010-2099, the present value social cost of all types of accidents caused by climate change is $58 billion. |
| Keywords: | traffic accidents, traffic fatalities, climate change |
| JEL: | Q58 Q52 H23 R41 |
| Date: | 2015–05–19 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-15-19&r=env |
| By: | Faith Euphrasia Mavengere (University of Jyväskylä) |
| Abstract: | The concept of a green economy, which was developed in the field of environmental economics, has in the past two years entered mainstream policy discourse and been broadened from the industrialized countries to envelop the developing and also the least developed countries. Green economy is perceived as a concept replacing sustainable development as the new driving force of environmental action. However, different green economy approaches have been discussed and researched mainly in the context of industrialized countries. Thus, there is a clear need to bridge this gap by founding research on the green economy’s implications in developing countries hence the purpose of this PhD research is to analyze green growth in relation to energy governance in Cambodia and Laos. The following key research questions are raised: What are the governance processes that influence whether the efforts will be guided towards large-scale solutions, such as large scale hydropower or towards finding locally appropriate solutions for green economy transformations? What are the challenges and possibilities for transforming the energy sectors to be more inclusive? Qualitative research methods will be used to collect data in this research. Research materials and methods which will be used in this research include policy analysis assessing policy documents, development plans and strategies such as the green growth road map of Cambodia and the national renewable energy strategies for Cambodia and Laos. Additionally, in line with the scope of this research, thematic interviews will therefore be carried out with planners in different ministries and provincial authorities as well as among civil society actors to provide relevant information, opinions and thoughts on the topic. The findings of this research will add to the existing body of knowledge with insights for bridging society-science-policy gaps in energy governance planning and decision-making processes in Laos and Cambodia and other least developed countries where local capacity and resources are limited. |
| Keywords: | green economy, energy |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:2503531&r=env |
| By: | Florens Flues; Benjamin Johannes Lutz |
| Abstract: | Proposals to increase environmentally related taxes are often challenged on competitiveness grounds. The concern is that value creation in certain sectors might decline domestically if a country introduces environmentally related taxes unilaterally. Furthermore, environmental goals might not be reached if pollution shifts abroad. A competing view argues that properly implemented environmentally related taxes foster innovation, thereby boosting productivity and competitiveness. Empirical research is needed to gain insight into the strength of these various effects. This paper provides evidence on the short-term competitiveness impacts of the German electricity tax introduced unilaterally in 1999. Germany’s manufacturing sector uses significant amounts of electricity, and to counteract potential negative effects on competitiveness, relief was provided: firms using more electricity than specified thresholds benefitted from reduced electricity tax rates. The tax reduction amounted up to EUR 14.6 per megawatt hour, about 80% of the full tax rate. When measured as an effective rate on the carbon content in the average unit of electricity, the electricity tax translates into EUR 44.4 per tonne of carbon dioxide, indicating the magnitude of the tax. The econometric analysis – a regression discontinuity design – shows no robust effects in either direction of the reduced electricity tax rates on firms’ competitiveness. Firms subject to the full tax rates, but otherwise similar to firms facing reduced rates, did not perform worse in terms of turnover, exports, value added, investment and employment. The analysis questions the relevance of the tax reduction for competitiveness reasons and suggests that it could be gradually removed. The energy use threshold, above which a reduced tax rate applies, could be raised over time and competitiveness impacts monitored. |
| Keywords: | tax expenditure, environmental taxation, competitiveness impacts |
| JEL: | D22 H21 H23 Q41 Q48 |
| Date: | 2015–05–12 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:88-en&r=env |
| By: | Christos Makridis (Stanford University) |
| Abstract: | This paper estimates the elasticities of substitution between air quality and non-durables consumption, housing services, and leisure in the United States. First, I develop the most comprehensive database to date containing measures of household-level consumption, leisure, and demographics, together with county-level measures of weather, air quality, pollution, and economic development throughout the entire United States between 2005-2010. Second, I formulate and estimate a structural model allowing for nonseparable interactions between air quality and non-durables consumption, housing services, and leisure equal to 1.5, .62, and .32, respectively, and are identified from county-industry-specific deviations in air quality from the county averages after conditioning on shocks common to all counties within a state. Prior literature ignored the ways in which households are able to best respond to changes in environmental amenities through cross-substitution. The multi-dimensionality of the micro-data allows me to characterize heterogeneity in tastes for air quality based on brackets of educational attainment, income, age, and exposure to pollution. Third, applying my elasticity estimates to an analog of the EPA’s evaluation of the Clean Air Act Amendments of 1990, I find that the benefits are many orders of magnitude lower because households are able to substitute across different private goods and services. |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:sip:dpaper:15-020&r=env |
| By: | Palmer, Karen (Resources for the Future); Walls, Margaret (Resources for the Future) |
| Abstract: | Building energy use accounted for 38 percent of total US carbon dioxide (CO2) emissions in 2012, and roughly half of those emissions were attributable to the commercial building sector. A new policy that has been adopted in 10 US cities and one US county is a requirement that commercial and sometimes also multifamily residential building owners disclose their annual energy use and benchmark it relative to other buildings. We discuss these nascent policies, preliminary analyses of the data that have been collected so far, and how to evaluate whether they are having an effect on energy use and CO2 emissions. Missing or imperfect information is a contributor to the energy efficiency gap, the finding that many low-cost options for improving energy efficiency fail to be adopted. These new laws may be an important step in closing the gap in the commercial and multifamily building sectors, but careful evaluation of the programs will be essential. |
| Keywords: | energy efficiency, commercial buildings, disclosure, benchmarking, energy use intensity, Energy Star, LEED |
| JEL: | Q40 Q48 |
| Date: | 2015–03–13 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-15-09&r=env |
| By: | Shuhua Chang; Xinyu Wang; Alexander Shananin |
| Abstract: | In this paper, we present a mean field game to model the production behaviors of a very large number of producers, whose carbon emissions are regulated by government. Especially, an emission permits trading scheme is considered in our model, in which each enterprise can trade its own permits flexibly. By means of the mean field equilibrium, we obtain a Hamilton-Jacobi-Bellman (HJB) equation coupled with a Kolmogorov equation, which are satisfied by the adjoint state and the density of producers (agents), respectively. Then, we propose a so-called fitted finite volume method to solve the HJB equation and the Kolmogorov equation. The efficiency and the usefulness of this method are illustrated by the numerical experiments. Under different conditions, the equilibrium states as well as the effects of the emission permits price are examined, which demonstrates that the emission permits trading scheme influences the producers' behaviors, that is, more populations would like to choose a lower rather than a higher emission level when the emission permits are expensive. |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1506.04869&r=env |
| By: | Lance Taylor; Armon Rezai (Vienna University of Economics and Business, Welthandelsplatz 1, 1020 Vienna, Austria); Duncan K. Foley |
| Abstract: | A demand-driven growth model involving capital accumulation and the dynamics of greenhouse gas (GHG) concentration is set up to examine macroeconomic issues raised by global warming, e.g. effects on output and employment of rising levels of GHG; offsets by mitigation; relationships among energy use and labor productivity, income distribution, and growth; the economic significance of the Jevons and other paradoxes; sustainable consumption and possible reductions in employment; and sources of instability and cyclicality implicit in the twodimensional dynamical system. The emphasis is on the combination of biophysical limits and Post- Keynesian growth theory and the qualitative patterns of system adjustment and the dynamics that emerge. |
| Keywords: | Demand-driven growth / climate change / demand and distribution / energy use / energy productivity / labor productivity / employment |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwiee:ieep3&r=env |
| By: | Alex Bowen; Emanuele Campiglio; Sara Herreras Martinez |
| Abstract: | This study employs a number of Integrated Assessment Models to determine what the optimal financial transfers between high-income and developing economies would be if climate mitigation effort, measured as mitigation costs as a share of GDP, were to be divided equally across regions. We find these to be larger than both current and planned international climate finance flows. Four out of six models imply that a North-South annual financial transfer of around US$ 400 billion is required by 2050, while the other two models imply larger sums, up to US$ 2 trillion. The equal effort constraint means that current oil exporting regions – Middle East and Former Soviet Union in particular – would receive relatively large amounts as a share of GDP. However, transfers never exceed 1-2% of GDP for high-income country regions in any model. Some potential sources of funds are reviewed, including carbon markets, public aid, private investment, development banks and special climate-related facilities. At the moment, finance flows through these channels do not appear to be equal to the task. Finally, we draw some policy conclusions, arguing that expanding private investment, if properly managed, could represent the most effective strategy to fill the ‘optimal and equitable’ climate finance gap. |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp184&r=env |
| By: | Md. Samsul Alam; Sudharshan Reddy Paramati; Muhammad Shahbaz; Mita Bhattacharya |
| Abstract: | This study examines the dynamic relationship between natural gas consumption, output, and trade in a sample of fifteen emerging economies using quarterly data for the period of 1990-2012. We employ the robust panel cointegration techniques and a heterogeneous panel causality test. Our findings confirm the presence of long-run association between natural gas consumption, output and trade. The short-run heterogeneous panel causality test suggests that natural gas consumption has feedback effect between economic growth and international trade. These findings have important implications for energy and environmental policies. The conservation policies that are designed to reduce natural gas consumption have an adverse effect on both economic growth and trade. We suggest future energy policies should focus on improving energy supply, and formulate appropriate channels to attract investments into renewable energy production with greater involvement of public-private partnership initiatives. |
| Keywords: | Natural gas consumption, economic growth, trade, emerging economies |
| JEL: | F14 O47 P28 Q43 |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:mos:moswps:2015-21&r=env |
| By: | B.Sudhakara Reddy (Indira Gandhi Institute of Development Research) |
| Abstract: | The imperative for energy security is paramount for global, national and internal stability and development. Using an indicator based approach, the present study develops a framework for sustainable energy security of India. First, it presents the energy supply and demand situation in the country under different scenarios. Then it conceptualizes the notion of energy security and quantifies it for India with the help of different indicators for energy security available in the literature. Both the supply and demand side views and both micro and macro dimensions are considered in assessing how secured India as a country is with respect to our energy future. The dimensions that include energy security are: economic, environmental, social and institutional. This will help planners and policy makers to understand India's energy scene better and design policies to develop sustainable technologies and practices to ensure energy resources last long. |
| Keywords: | energy, development, indicator, security, sustainability |
| JEL: | P28 Q41 Q42 Q48 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:ind:igiwpp:2015-008&r=env |
| By: | Epanchin-Niell, Rebecca S. (Resources for the Future); Liebhold, Andrew M. |
| Abstract: | Quantifying economic damages caused by invasive species is crucial for cost-benefit analyses of control measures. Most studies focus on short-term damage estimates, but evaluating exclusion or prevention measures requires estimates of total anticipated damages from the time of establishment onward. The magnitude of such damages critically depends on the timing of damages relative to a species’ arrival because costs are discounted back to the time of establishment. Using theoretical simulations, we illustrate how (ceteris paribus) total long-term damages, and hence the benefits of prevention efforts, are greater for species that a) have short lags between introduction and spread or between arrival at a location and initiation of damages, b) cause larger, short-lived damages (as opposed to smaller, persistent damages), and c) spread faster or earlier. We empirically estimate total long-term discounted impacts for three forest pests currently invading North America - gypsy moth (Lymantria dispar), hemlock woolly adelgid (Adelges tsugae), and emerald ash borer (Agrilus planipennis) - and discuss how damage persistence, lags between introduction and spread, and spread rates affect damages. Many temporal characteristics can be predicted for new invaders and should be considered in species risk analyses and economic evaluations of quarantine and eradication programs. |
| Keywords: | biological invasion; economic impact, damages, gypsy moth (Lymantria dispar), hemlock woolly adelgid (Adelges tsugae), emerald ash borer (Agrilus planipennis) |
| Date: | 2015–05–19 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-15-18&r=env |
| By: | Tommaso Proietti (DEF and CEIS, Università di Roma "Tor Vergata"); Eric Hillebrand (University of Aarhus and CREATES) |
| Abstract: | The aim of this paper is to assess how climate change is reflected in the variation of the seasonal patterns of the monthly Central England Temperature time series between 1772 and 2013. In particular, we model changes in the amplitude and phase of the seasonal cycle. Starting from the seminal work by Thomson (“The Seasons, Global Temperature and Precession”, Science, 7 April 1995, vol 268, p. 59–68), a number of studies have documented a shift in the phase of the annual cycle implying an earlier onset of the spring season at various European locations. A significant reduction in the amplitude of the seasonal cycle is also documented. The literature so far has concentrated on the measurement of this phenomenon by various methods, among which complex demodulation and wavelet decompositions are prominent. We offer new insight by considering a model that allows for seasonally varying deterministic and stochastic trends, as well as seasonally varying autocorrelation and residual variances. The model can be summarized as containing a permanent and a transitory component, where global warming is captured in the permanent component, on which the seasons load differentially. The phase of the seasonal cycle, on the other hand, seems to follow Earth’s precession in a stable manner, and the reported fluctuations are identified as transitory. |
| Keywords: | Global Warming, Seasonal Models, Structural Change, Amplitude and Phase Shifts. |
| JEL: | C22 |
| Date: | 2015–06–15 |
| URL: | http://d.repec.org/n?u=RePEc:rtv:ceisrp:347&r=env |
| By: | Hagem, Cathrine; Hoel, Michael; Holtsmark, Bjart; Sterner, Thomas |
| Abstract: | We analyze two mechanism designs for refunding emissions payments to polluting firms - outputbased refunding (OB) and expenditure-based refunding (EB). In both instruments, emissions fees are returned to the polluting industry, typically making the policy more politically acceptable than a standard tax. The crucial difference between OB and EB is that the fees are refunded in proportion to output in the former but in proportion to the firms’ expenditure on abatement equipment in the latter. We show theoretically that to achieve a given abatement target, the fee level in the OB design exceeds the standard tax rate, whereas the fee level in the EB design is lower. Furthermore, the use of OB and EB may lead to large differences in the distribution of costs across firms. Both designs imply a cost-ineffective provision of abatement, as firms put relatively too much effort into reducing emissions through abatement technology compared with reducing output or improving management. However, maintaining output may be seen as a political advantage by policymakers if they seek to avoid activity reduction in the regulated sector. |
| Keywords: | refunded charge, output-based, expenditure-based, NOx, tax subsidy, policy design |
| JEL: | Q28 Q25 H23 |
| Date: | 2015–02–06 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-15-05&r=env |
| By: | M. Gómez; M. C. Ausin; M. C. Domínguez |
| Abstract: | Modelling glacier discharge is an important issue in hydrology and climate research. Glaciers represent a fundamental water resource when melting of snow contributes to runoff. Glaciers are also studied as natural global warming sensors. GLACKMA association has implemented one of their Pilot Experimental Watersheds at the King George Island in the Antarctica which records values of the liquid discharge from Collins glacier. In this paper, we propose the use of time-varying copula models for analyzing the relationship between air temperature and glacier discharge, which is clearly non constant and non linear through time. A seasonal copula model is defined where both the marginal and copula parameters vary periodically along time following a seasonal dynamic. Full Bayesian inference is performed such that the marginal and copula parameters are estimated in a one single step, in contrast with the usual twostep approach. Bayesian prediction and model selection is also carried out for the proposed model such that Bayesian credible intervals can be obtained for the conditional glacier discharge given a value of the temperature at any given time point. The proposed methodology is illustrated using the GLACKMA real data where there is, in addition, a hydrological year of missing discharge data which were not possible to measure accurately due to hard meteorological conditions. |
| Keywords: | Bayesian inference , Copulas , Glacier discharge , Seasonality , Melt modelling , MCMC |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:cte:wsrepe:ws1513&r=env |
| By: | José Manuel Belbute (Department of Economics, University of Évora, Portugal Center for Advanced Studies in Management and Economics - CEFAGE, Portugal) |
| Abstract: | In this paper we measure the degree of fractional integration in final energy demand in Portugal using an ARFIMA model. Our findings suggest the presence of long memory in aggregate and disaggregate energy demand in Portugal. All fractional-difference parameters are positive and lower than 0.5 indicating that the series are stationary, although the mean reversion process will be slower than in the typical short run processes. In addition, our findings also indicate that there is clear seasonal long memory evidence for all the Portuguese components of final energy demand. These results have important implication for the design of environmental policies. First, despite the effects of a policy shock on energy consumption will tend to disappear slowly, they preserve their temporary nature. This is good news for the success of the Portuguese green tax reform since fiscal neutrality may be achieved earlier and cause temporary budget imbalances for a smaller period. Second, given the temporary nature of the effects of the policy shock, long lasting effects on the final energy consumption will be achieved by means of a more permanent policy stance. |
| Keywords: | Long memory; Final energy demand; Environmental policy; ARFIMA model; Portugal. |
| JEL: | C22 O13 Q41 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:cfe:wpcefa:2015_04&r=env |
| By: | Jolien De Baerdemaeker; Werner Bruggeman (-) |
| Abstract: | In the empirical literature, much consideration has been given over the years to the dysfunctionalitiesof budgetary slack: budgetary slack is believed to be created to intentionally bias performance evaluations, to control for resources, and to achieve personal aspirations. In contrast to this, we examine the extent to which budgetary slack is created in response to perceived environmental uncertainty rather than as a way of intentionally biasing performance evaluations. In particular, building on information processing and role theory, we argue that perceived environmental uncertainty is both directly and indirectly through the sequential mediation of role ambiguity and job related tension related to budgetary slack. Using quantitative survey data, we find that budgetary slack is positively related to the job related tension caused by uncertainty driven role ambiguity. As the effect of job related tension on budgetary slack overrides the explanatory potential of traditionally recognized antecedents such as budget participation, information asymmetry and superior’s ability to detect slack, our results hig hlight the importance of psychological variables to fully understand the budgetary slack process. |
| Keywords: | budgetary slack;environmental uncertainty; role ambiguity; job-related tension; tolerance for ambiguity |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:rug:rugwps:15/907&r=env |
| By: | Arif Yurtsev (Eastern Mediterranean University, North Cyprus); Glenn P. Jenkins (Queen’s University, Canada and Eastern Mediterranean University, North Cyprus) |
| Abstract: | This paper reports on an economic cost-effective analysis of water heating systems including solar water heating systems (SWHSs). This study finds that in situations where there is a winter, or a rainy season, the choice of the source of energy for the SWHS’s back-up during this period is critical for its overall cost-effectiveness. It is found that in the conditions of North Cyprus, an SWHS with electricity back-up is far superior to using electricity alone, however, it is inferior to heating water with either a liquefied petroleum gas (LPG) water heater alone or an SWHS with an LPG back-up. Policies to promote water heating systems that reduce the use of electricity should not encourage the installation of SWHSs with electricity back-up. An LPG water heater or an SWHS with an LPG back-up are economically more cost-effective, with or without the inclusion of the social cost of carbon estimates. |
| Keywords: | Cost-effectiveness analysis; water heater systems; North Cyprus. |
| JEL: | D61 Q42 Q48 Q50 R20 |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:qed:dpaper:279&r=env |
| By: | Emam, Sherief; Grebel, Thomas |
| Abstract: | In this paper we investigate the impact of rising energy prices on technological progress in the market for renewable energies. We use patent data of OECD countries from 1970 to 2010 and test the impact of oil prices on the innovative success of countries; R&D, investment activities, electricity consumption, etc. are used as control variables. We compare several models such as Pooled Mean Group (PMG), Mean Group (MG), Count data (CD) and Dynamic fixed effects (DFE) models to distinguish short and long-term effects. The preliminary results show that increasing energy prices seem to encourage innovation in renewable energy technologies. |
| Keywords: | Renewable Energy,Heterogeneous Dynamic Panel Data,Technological Progress |
| JEL: | Q55 C23 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:tuiedp:91&r=env |
| By: | Kapil Narula (Indira Gandhi Institute of Development Research); B. Sudhakara Reddy (Indira Gandhi Institute of Development Research); Shonali Pachauri |
| Abstract: | This paper presents a quantitative assessment of Sustainable Energy Security (SES) of the energy demand sub-system for India by calculating a SES index. The demand sub-system has been evaluated for four dimensions of SES, viz., Availability, Affordability, Efficiency and (Environmental) Acceptability using selected metrics. A hierarchical structure has been used to construct indices using 'scores' (objective values of selected metrics), and 'weights' (subjective values, representing importance of each metric) which are then aggregated, to obtain a SES Index. Various sectors of the energy demand sub-system are evaluated and dimensional and sectoral indices are calculated for the years 2002, 2007 and 2012. Assessment of the obtained energy indices is undertaken and the results reveal that all (except one) sectoral indices have shown an increase during the period of assessment. The results show that from 2002 to 2012 the aggregate SES Index has increased by approximately 10 which indicates a gradual improvementin the sustainability and security of the energy demand sub-system.However, the SES index is approximately 0.7 (short of the desired target of 1.0), which implies that there is still a large scope for improvement in the performance of the India's energy demand sub-system. A sensitivity analysis of various indices reveals that the SES index is relatively robust to variation in weights allotted to different dimensions and hence provides a reliable assessment of the SES of the demand sub-system. |
| Keywords: | Energy Security, Energy Sustainability, Energy Index, Indicators |
| JEL: | P28 Q41 Q42 Q48 |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:ind:igiwpp:2015-013&r=env |
| By: | Klara Zwickl (Vienna University of Economics and Business, Welthandelsplatz 1, 1020 Vienna, Austria); Franziska Disslbacher (Vienna University of Economics and Business, Welthandelsplatz 1, 1020 Vienna, Austria); Sigrid Stagl (Vienna University of Economics and Business, Welthandelsplatz 1, 1020 Vienna, Austria) |
| Abstract: | Achieving low unemployment in an environment of weak growth is a major policy challenge; a more egalitarian distribution of hours worked could be the key to solving it. Whether worksharing actually increases employment, however, has been debated controversially. In this article we present stylized facts on the distribution of hours worked and discuss the role of work-sharing for a sustainable economy. Building on recent developments in labor market theory we review the determinants of working long hours and its effect on well-being. Finally, we survey work-sharing reforms in the past. While there seems to be a consensus that worksharing in the Great Depression in the U.S. and in the Great Recession in Europe was successful in reducing employment losses, perceptions of the work-sharing reforms implemented between the 1980s and early 2000s are more ambivalent. However, even the most critical evaluations of these reforms provide no credible evidence of negative employment effects; instead, the overall success of the policy seems to depend on the economic and institutional setting, as well as the specific details of its implementation. |
| Keywords: | Work-sharing; Working hours; Labor Supply; Labor Demand; Environmental Sustainability |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwiee:ieep4&r=env |
| By: | Kroetz, Kailin (Resources for the Future); Sanchirico, James N. |
| Abstract: | We synthesize literature on the spatial aspects of coupled natural-human systems across a variety of natural resource contexts and introduce a framework that can be used to compare modeling approaches and findings across applications. The important components of these systems include spatial heterogeneity in benefits and costs and connectivity of the network. One or more of these components is necessary for spatial policies to be the efficient solution. We highlight the importance of these components by identifying their role in previous work that shows that spatial differentiation in policy implementation is optimal. We pay particular attention to research highlighting the difference between spatial and aspatial policies and the presence of optimal boundary solutions. Finally, we develop a stylized metapopulation model to relate findings in the spatial bioeconomic literature to the theory of second best in public economics and suggest areas for future analysis. |
| Keywords: | bioeconomics, spatial dynamics, metapopulation, connectivity, optimal control |
| Date: | 2015–04–20 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-15-14&r=env |
| By: | Doruk Ä°riÅŸ; Jungmin Lee; Alessandro Tavoni |
| Abstract: | The provision of global public goods, such as climate change mitigation and managing fisheries to avoid overharvesting, requires the coordination of national contributions. The contributions are managed by elected governments who, in turn, are subject to public pressure on the matter. In an experimental setting, we randomly assign subjects into four teams, and ask them to elect a delegate by a secret vote. The elected delegates repeatedly play a one shot public goods game in which the aim is to avoid losses that can ensue if the sum of their contributions falls short of a threshold. Earnings are split evenly among the team members, including the delegate. We find that delegation causes a small reduction in the group contributions. Public pressure, in the form of teammates’ messages to their delegate, has a significant negative effect on contributions, even though the messages are designed to be payoff-inconsequential (i.e., cheap talk). The reason for the latter finding is that delegates tend to focus on the least ambitious suggestion. In other words, they focus on the lower of the two public good contributions preferred by their teammates. This finding is consistent with the prediction of our model. |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp186&r=env |
| By: | Misato Sato; Gregor Singer; Damien Dussaux; Stefania Lovo |
| Abstract: | The lack of information on the cost of energy for industry poses a major barrier in assessing the effects of energy prices and taxes on the economic performance and international competitiveness of regulated firms. This paper documents the construction of an energy price index for 12 industrial sectors, covering 48 countries for the period 1995 to 2011. Two distinct indices are constructed: the Variable-Weight Energy Price Level (VEPL) which is useful for cross sectional analysis or descriptive statistics and; the Fixed-Weight Energy Price Index (FEPI) which is designed for use in times series and panel data analysis. We present a descriptive analysis of the major trends in energy prices and taxes, and provide guidelines for the use of our energy price data which is made publicly available for download. The indices reveal, among other things, that industrial energy prices have been on an increasing trend in real terms since 2000 for most countries, and that the gap between the highest and the lowest energy prices internationally has widened with the average price in the 10% highest countries being 2.4 times larger than the 10% lowest in 2010. The bulk of variation in industrial energy prices across countries is attributable not to the wholesale price differences but the tax component. We then evaluate to what extent energy prices are a good proxy for emissions policy stringency, and it shows that it has many attractive qualities and avoid problems common to other proxies which have been used in the literature. |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp187&r=env |
| By: | Kroetz, Kailin (Resources for the Future); Sanchirico, James N.; Lew, Daniel K. |
| Abstract: | Objectives of tradable permit programs are often broader than internalizing an externality and improving economic efficiency. Many programs are designed to accommodate community, cultural, and other non-efficiency goals through restrictions on trading. However, restrictions can decrease economic efficiency gains. We use a policy experiment from the Alaska halibut and sablefish tradable permit program, which includes both restricted and unrestricted permits, to develop one of the few empirical measurements of the costs of meeting non-efficiency goals. We estimate that restrictions are reducing resource rent in the halibut and sablefish fisheries by 25% and 9%, respectively. |
| Keywords: | tradable permits, created markets, individual transferrable quota, catch shares, Alaskan halibut and sablefish fishery |
| JEL: | Q22 Q28 |
| Date: | 2015–03–25 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-14-32&r=env |