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on Environmental Economics |
| By: | Löfgren, Åsa (Department of Economics, School of Business, Economics and Law, Göteborg University); Burtraw, Dallas (Resources for the Future); Wråke, Markus (Energy Unit at IVL); Malinovskaya, Anna (Resources for the Future) |
| Abstract: | Recent changes to the EU Emissions Trading System introduce structural changes regarding the initial distribution of emissions allowances, which are worth tens of billions of euros. A key change is the expanding role for auctions, which account for about half of the allowance allocation now and will be a growing share going forward. The use of revenue from auctions is a decision left to EU Member States and appears increasingly important. Well over half of auction revenue to date has been directed to energy and climate related purposes. Further, we do not find evidence that Member States have used state aid to electricity-intensive firms to strategically support domestic industry. The trading system is evolving in a way that is likely to improve its performance, but there remain important questions related the future price of allowances and the distribution and use of asset value created under the trading system. |
| Keywords: | auction; cap and trade; European Union; EU ETS; allocation; climate change; policy |
| JEL: | H23 P48 Q54 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0634&r=env |
| By: | José Belbute (Department of Economics, University of Évora, Portugal and CEFAGE-UE, Portugal); Alfredo M. Pereira (Department of Economics, College of William and Mary, Williamsburg) |
| Abstract: | We provide alternative reference forecasts for global CO2 emissions based on an ARFIMA model estimated with annual data from 1750 to 2013. These forecasts are free from additional assumptions on demographic and economic variables that are commonly used in reference forecasts, as they only rely on the properties of the underlying stochastic process for CO2emissions, as well as on all the observed information it incorporates. In this sense, these forecasts are more based on fundamentals. Our reference forecast suggests that in 2030, 2040 and 2050, in the absence of any structural changes of any type, CO2 would likely be at about 25%, 34% and 39.9% above 2010 emission levels, respectively. These values are clearly below the levels proposed by other reference scenarios available in the literature. This is important, as it suggests that the ongoing policy goals are actually within much closer reach than what is implied by the standard CO2reference emission scenarios. Having lower and more realistic reference emissions projections not only gives a truer assessment of the policy efforts that are needed, but also highlights the lower costs involved in mitigation efforts, thereby maximizing the likelihood of more widespread energy and environmental policy efforts. |
| Keywords: | Forecasting, reference scenario, CO2 emissions, long memory, ARFIMA. |
| JEL: | C22 C53 O13 Q47 Q54 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:cfe:wpcefa:2015_11&r=env |
| By: | Leip, Adrian; Bielza, Maria; Bulgheroni, Claudia; Ciaian, Pavel; Lamboni, Matiyendou; Koeble, Renate; Paracchini, Maria-Luisa; Terres, Jean-Michael; Weiss, Franz; Witzke, Heinz-Peter |
| Abstract: | A specific challenge when analysing the effectiveness of the new CAP, is to identify the localized environmental impacts of policies, especially of the new 'greening' measures. Agri-environmental indicators (AEI) are routinely used to monitor changes in environmental quality in general and the environmental impacts of CAP greening in particular and allow identifying hot- and cold-spots of environmental pressures. This paper proposes a methodology for the spatially explicit evaluation of agri-environmental impacts of CAP, which allows integrating environmental impact analysis into agro-economic models, with an application to CAPRI. We have developed an approach to estimate the impacts of CAP policy at high spatial resolution level using Bayesian disaggregation procedures taking into consideration local environmental conditions. We cover modelling of the following environmental indicators: nitrogen balances and emissions (GHG and reactive nitrogen), soil erosion, biodiversity friendly farming practices, farmland bird index, agricultural landscape structure, and an indicator related to environmental compensation zones. The paper shows the simulation results for a set of CAP greening scenarios to illustrate the capabilities of the developed methodology and potential environmental impacts of the greening measures. |
| Keywords: | Agribusiness, Environmental Economics and Policy, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211541&r=env |
| By: | Dakpo, K; Jeanneaux, Philippe; Latruffee, Laure |
| Abstract: | In this paper we consider different models that assess eco-efficiency with production frontier estimation when both desirable outputs and undesirable outputs (or residuals) are considered. These models are confronted to livestock farm data (sheep meat farms) and greenhouse gas (GHG) emissions, to discuss their suitability in eco-efficiency measurement. The application is to French sheep meat farms. Our results show that under certain conditions the existing models, except for the by-production, yield the same results as when residuals are treated as inputs. The results also reveal that the by-production model augmented with dependence constraints offer some promising opportunities. Besides, environmental inefficiency appears to be the main contributor of eco-inefficiency in the sheep meat production. |
| Keywords: | eco-efficiency, undesirable output, multiple frontier technology, GHG emissions, sheep meat farming, France, Environmental Economics and Policy, C00, O13, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211557&r=env |
| By: | Alan Barreca; Olivier Deschenes; Melanie Guldi |
| Abstract: | Dynamic adjustments could be a useful strategy for mitigating the costs of acute environmental shocks when timing is not a strictly binding constraint. To investigate whether such adjustments could apply to fertility, we estimate the effects of temperature shocks on birth rates in the United States between 1931 and 2010. Our innovative approach allows for presumably random variation in the distribution of daily temperatures to affect birth rates up to 24 months into the future. We find that additional days above 80 °F cause a large decline in birth rates approximately 8 to 10 months later. The initial decline is followed by a partial rebound in births over the next few months implying that populations can mitigate the fertility cost of temperature shocks by shifting conception month. This dynamic adjustment helps explain the observed decline in birth rates during the spring and subsequent increase during the summer. The lack of a full rebound suggests that increased temperatures due to climate change may reduce population growth rates in the coming century. As an added cost, climate change will shift even more births to the summer months when third trimester exposure to dangerously high temperatures increases. Based on our analysis of historical changes in the temperature-fertility relationship, we conclude air conditioning could be used to substantially offset the fertility costs of climate change. |
| JEL: | I12 J13 Q54 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21681&r=env |
| By: | Huan-Niemi, Ellen; Niskanen, Olli; Rikkonen, Pasi; Rintamaki, Heidi |
| Abstract: | The objective of this paper is to provide insights for researchers and policy makers concerning the impact of specific mitigation measures for greenhouse gas emissions at the farm level. Both quantitative simulations and qualitative expert judgements are used to analyse the impacts of four different mitigation measures for greenhouse gas emissions in Finland. The quantitative effects projected by the farm level modelling can provide the expert panel an opportunity to evaluate the acceptability at the farm level and the effectiveness of these mitigation measures to reduce emissions from agriculture. The results indicate that the potential to reduce emissions from Finnish agriculture is limited with current technology and the cost is high for implementing these measures at the farm level. The possible emissions reduction in Finland from these measures would contribute to less than one tenth of the reduction target for sectors excluded from the Emissions Trading System. |
| Keywords: | quantitative method, qualitative method, greenhouse gas emissions, agriculture, Finland, Agricultural and Food Policy, Environmental Economics and Policy, F53, Q18, Q54, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211751&r=env |
| By: | Beach, Robert; Creason, Jared; Ohrel, Sara; Ragnauth, Shaun; Ogle, Stephen; Li, Changsheng; Salas, William |
| Abstract: | Agricultural emissions account for 53% of 2010 global non-CO2 emissions and are projected to increase substantially in the future, especially in Asia, Latin America and Africa. While agriculture is a substantial source of emissions, it is also a potential source of cost-effective non-CO2 GHG abatement. Previous “bottom-up” analyses provided marginal abatement cost (MAC) curves for use in modeling these options within economy-wide and global mitigation analyses. In this study, we utilize updated economic and biophysical data and models to extend and improve upon previous work. Key enhancements include incorporation of additional mitigation options, updated baseline emissions projections, greater spatial disaggregation, and development of MAC curves to 2030. MAC curves are generated accounting for net GHG reductions, yield effects, livestock productivity effects, commodity prices, labor requirements, and capital costs where appropriate. MAC curves are developed at the country level and reveal large potential for non-CO2 GHG mitigation at low carbon prices. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211208&r=env |
| By: | Christopher R. Knittel; Konstantinos Metaxoglou; Andre Trindade |
| Abstract: | We examine the environmental impact of the post-2005 natural gas glut in the United States due to the shale gas boom. Our focus is on quantifying short-term coal-to-gas switching decisions by different types of electric power plants in response to changes in the relative price of the two fuels. In particular, we study the following entities: investor-owned utilities (IOUs) and independent power producers (IPPs) in restructured markets coordinated by Independent System Operators, as well as IOUs in traditional vertically-integrated markets. Using alternative data aggregations and model specifications, we find that IOUs operating in traditional markets are more sensitive to changes in fuel prices than both IOUs and IPPs in restructured markets. We attribute our findings to differences in available gas-fired generating capacity with the most cost-efficient technology: electricity generators reduced their rate of investment in the restructured markets post restructuring. The heterogeneity in the response of fuel consumption to prices has implications for carbon dioxide (CO2) emissions for the entities considered. Using simple back-of-the-envelope calculations, the almost 70% drop in the price of natural gas between June 2008 and the end of 2012 translates to as much as 33% reduction in CO2 emissions for IOUs in traditional markets, but only up to 19% for IOUs in restructured markets. |
| JEL: | L5 L71 L94 Q4 Q5 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21627&r=env |
| By: | Wenhui Tian (LGI - Laboratoire Génie Industriel - EA 2606 - Ecole Centrale Paris); Pascal Da Costa (LGI - Laboratoire Génie Industriel - EA 2606 - Ecole Centrale Paris); Jean-Claude Bocquet (LGI - Laboratoire Génie Industriel - EA 2606 - Ecole Centrale Paris) |
| Abstract: | In the context of global warming, academic institutes, international institutions such as the Intergovernmental Panel on Climate Change and governments of numerous countries have proposed global objectives of reducing CO 2 emissions and announced national targets. The purposes of this article are: i) to assess the governmental targets in comparing with the global objectives of various allocation methods, which correspond to different carbon equity principles; ii) to propose technology roadmaps in terms of carbon equity in the energy sectors, under the consideration of the international convergence of technologies in the energy transition period up to 2050. In order to evaluate the technology roadmaps, a Sectoral Emission Model is proposed that covers the sectors responsible for the greatest part of CO 2 emissions (power, transport, residence and industry sector) in studying the impacts of the principle energy technologies (energy mix, electric vehicles and energy efficiency). In the article, the technology roadmaps for the governmental targets on CO 2 emissions are studied for three typical countries: China, France, and the United States. Our results show that under the sectoral carbon equity consideration, coal combustion is projected to be reduced by two thirds in China, and it will have to be almost eliminated in the United States to achieve their CO 2 reduction target. But gas is encouraged to be used in the power sector, especially in the United States. Regarding the transport sector, more than 60% of vehicles should be replaced to electric vehicles in China, and this share will be about up to 90% in France and the United States. |
| Keywords: | Multi-Objective Optimization,Technology Roadmaps,Sectoral Emission Modeling,Energy Transition,CO2 Emission Prospective Scenarios,Carbon Inequality |
| Date: | 2015–10–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01219769&r=env |
| By: | Gissela Landa (OFCE Sciences Po); Frederic Raynes (OFCE-SciencesPo & TNO); Ivan Islas (INECC); François-Xavier Bellocq (AFD); Fabio Grazi (AFD) |
| Abstract: | This paper simulates the medium- and long-term impact of proposed and expected energy policy on the environment and on the Mexican economy. The analysis has been conducted with a Multi-sector Macroeconomic Model for the Evaluation of Environmental and Energy policy (Three-ME). This model is well suited for policy assessment purposes in the context of developing economies as it indicates the transitional effects of policy intervention. Three-ME estimates the carbon tax required to meet emissions reduction targets within the Mexican “Climate Change Law”, and assesses alternative policy scenarios, each reflecting a different strategy for the recycling of tax revenues. With no compensation, the taxation policy if successful will succeed in in reducing CO2 emissions by more than 75% by 2050 with respect to Business as Usual (BAU), but at high economic costs. Under full redistribution of carbon tax revenues, a double |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:fce:doctra:1524&r=env |
| By: | Alem, Yonas (Department of Economics, School of Business, Economics and Law, Göteborg University); Eggert, Håkan (Department of Economics, School of Business, Economics and Law, Göteborg University); Ruhinduka, Remidius (Department of Economics, School of Business, Economics and Law, Göteborg University) |
| Abstract: | We use rich survey data to investigate the impact of a climate-friendly rice farming method known as the system of rice intensification (SRI) on the welfare of rain-dependent small-holder farmers in Tanzania. SRI reduces water consumption by half, which makes it a promising farming system in the adaptation to climate change in moisture-constrained areas, and it does not require flooding of rice fields, resulting in reduced methane emissions. Endogenous switching regression results suggest that SRI indeed improves yield in rain-dependent areas, but its profitability hinges on the actual market price farmers face. SRI becomes profitable only when the rice variety sells at the same market price as that of traditional varieties, but results in loss when SRI rice sells at a lower price. We argue that the effort of promoting adoption of such types of climate-friendly agricultural practices requires complementary institutional reform and support in order to ensure their profitability to small-holder farmers. |
| Keywords: | Adaptation to climate change; Endogenous switching regression; Impact evaluation; System of rice intensification; Tanzania |
| JEL: | D13 J32 O33 Q12 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0630&r=env |
| By: | Arslan, Aslihan; McCarthy, Nancy; Lipper, Leslie; Asfaw, Solomon; Cattaneo, Andrea; Kokwe, Misael |
| Abstract: | We examine a set of potentially climate smart agricultural practices, including reduced tillage, crop rotation and legume intercropping, combined with the use of improved seeds and inorganic fertiliser, for their effects on maize yields in Zambia. We use panel data from the Rural Incomes and Livelihoods Surveys merged with a novel set of climatic variables based on geo-referenced historical rainfall and temperature data to explore the changing effects of these practices with climatic conditions. We estimate the impacts on maize yields, and also on the exhibition of very low yields and yield shortfalls from average levels, as indicators of resilience, while controlling for household characteristics. We find that minimum soil disturbance and crop rotation have no significant impact on these yield outcomes, but that legume intercropping significantly increases yields and reduces the probability of low yields even under critical weather stress during the growing season. We also find that the average positive impacts of modern input use (seeds and fertilisers) are significantly conditioned by climatic variables. Timely access to fertiliser emerges as one of the most robust determinants of yields and their resilience. These results have policy implications for targeted interventions to improve theproductivity and the resilience of smallholder agriculture in Zambia in the face of climate change. |
| Keywords: | Climate change, climate smart agriculture, food security, maize yields, panel data., Environmental Economics and Policy, O13, Q01, Q12, Q16, Q18, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:210962&r=env |
| By: | Kenneth Gillingham; William D. Nordhaus; David Anthoff; Geoffrey Blanford; Valentina Bosetti; Peter Christensen; Haewon McJeon; John Reilly; Paul Sztorc |
| Abstract: | The economics of climate change involves a vast array of uncertainties, complicating both the analysis and development of climate policy. This study presents the results of the first comprehensive study of uncertainty in climate change using multiple integrated assessment models. The study looks at model and parametric uncertainties for population, total factor productivity, and climate sensitivity. It estimates the pdfs of key output variables, including CO2 concentrations, temperature, damages, and the social cost of carbon (SCC). One key finding is that parametric uncertainty is more important than uncertainty in model structure. Our resulting pdfs also provide insights on tail events. |
| JEL: | O44 Q48 Q54 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21637&r=env |
| By: | Habla, Wolfgang (Department of Economics, School of Business, Economics and Law, Göteborg University); Winkler, Ralph (Department of Economics and Oeschger Centre for Climate Change Research, University of Bern Schanzeneckstrasse 1, CH-3012 Bern, Switzerland) |
| Abstract: | We analyze a principal-agent relationship in the context of international climate policy in a two-country framework. First, the principals of both countries decide whether to link their domestic emission permit markets to an international market. Second, the principals select agents who then non-cooperatively determine the levels of emission permits. Finally, these permits are traded on domestic or international permit markets. We find that the principals in both countries have an incentive to select agents that care (weakly) less for environmental damages than the principals do themselves. This incentive is more pronounced under international permit markets, particularly for permit sellers, rendering an international market less beneficial to at least one country. Our results may explain why we do not observe international permit markets despite their seemingly favorable characteristics and, more generally, suggest that treating countries as atomistic players may be an oversimplifying assumption when analyzing strategic behavior in international policy making. |
| Keywords: | non-cooperative climate policy; political economy; emissions trading; linking of permit markets; strategic delegation; strategic voting |
| JEL: | D72 H23 H41 Q54 Q58 |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0636&r=env |
| By: | Arouna, Aminou; Kouton, Baudelaire; Diagne, Aliou |
| Abstract: | This study aimed to assess the impact of climate change on rice income in four West African countries. The paper used the Ricardian approach to measure the relationship between the net income and climate variables (temperature and precipitation), soil characteristics, and socio-economic variables. Two models (with climate variables interaction and without climate variables interaction) were used under two growing environments (rain-fed and irrigated systems). We relaxed the assumption of additively separable climatic effects by including an interaction term in Ricardian equation to allow the effect of precipitation and temperature to be mutually dependent like in agronomic experiments. Data from 22,556 rice farmers across four countries were used. Results showed that if the average temperature increases by 1°C the net income of rice decreases by US$ 1,198. Results showed that irrigation can be applied as adaptation measure to climate change. |
| Keywords: | Climate Change, Ricardian Analysis, Rice, Impact, West Africa., Crop Production/Industries, Environmental Economics and Policy, International Development, D24, Q54, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:210958&r=env |
| By: | Guerrero-Escobar, Santiago; Juarez-Torres, Miriam; Martinez-Cruz, Adan |
| Abstract: | This research develops several indicators for assessing local vulnerability to climate change in the agricultural sector of Tocantins, Brazil, where the Inter-American Development Bank is carrying irrigation investments via the Development Program for the Southwest (PRODOESTE). Vulnerability to climate indicators are constructed from exposure and sensitivity indicators and estimated using panel data on yields and farmers’ profits as a function of climatic variables. Our baseline assessment indicates that those municipalities where PRODOESTE operates present medium to high levels of precipitation and temperature vulnerability, relative to the rest of Tocantins. In particular, temperature vulnerability is higher than precipitation vulnerability. We also find that vulnerability will increase in all municipalities due to climate change and it will be higher in the long-run and in more extreme climate change scenarios. Finally, irrigation is evaluated as a potential adaptation strategy and it is found to reduce climate vulnerability in the long-term, indicating that PRODOESTE’s irrigation investments may be successful at reducing vulnerability due to climate change. |
| Keywords: | Local Vulnerability in Agriculture, Climate Change, Irrigation Projects, Agribusiness, Agricultural and Food Policy, Environmental Economics and Policy, Q1, Q51, Q54, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211694&r=env |
| By: | Hristov, Jordan |
| Abstract: | Using a mixed input-output framework, this study examined potential changes in sector output and water requirements at national level in Macedonia arising from climate change. By defining three climate change scenarios and exogenously specifying the warming shocks for five key agricultural sub-sectors, the direct and indirect effects on the economy in terms of output and water demand were quantified. In general, the results indicated that except for cereals and grapes, agricultural production would benefit from the low climate change scenario, while there would be negligible effects on the rest of the economy. In contrast, the medium and high climate change scenarios would most likely negatively affect agriculture, with severe losses in grape, apple and cereal production, but again with low effects on other economic sectors. These results on the potential economic and physical impacts of climate change can help decision makers formulate future adaptation measures for the Macedonian agriculture sector. |
| Keywords: | agriculture, climate change, crop production, mixed input-output model, water consumption, Crop Production/Industries, Environmental Economics and Policy, C00, C55, D57, O13, Q15, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211747&r=env |
| By: | Haroldo de Oliveira Machado Filho (IPC-IG) |
| Abstract: | "Climate change has increasingly been recognised as the main challenge facing humanity in the coming decades. The starting point of this study is the consideration of future climate change scenarios and the uncertainties they bring. First, global projections available in the Intergovernmental Panel on Climate Change (IPCC) Fifth Assessment Report (AR5) are presented. Second, they are compared with regional scenarios (downscaling) developed by the Brazilian National Institute for Space Research (INPE), focusing on the two main IPCC scenarios (RCP 4.5 and RCP 8.5)1 and the two main global models (MIROC and Hadley Centre) for the periods 2011?2040 and 2041?2070, to identify the main trends in terms of changes in temperature and precipitation for the North and Northeast regions of Brazil (more specifically, in the Amazon, Semi-arid and Cerrado biomes)." (?) |
| Keywords: | Climate Change, Impacts, Family Farming, North and Northeast Regions, Brazil |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:ipc:pubipc:13&r=env |
| By: | Anastasios Xepapadeas; Athanasios Yannacopoulos |
| Abstract: | Variables describing the state of an environmental system such as resources (renewable or exhaustible), pollutants, greenhouse gases have a profound spatial dimension. This is because resources or pollutants are harvested, extracted, emitted, or abated in a specific location or locations, the impacts of environmental variables, whether beneficial or detrimental, have a strong spatial dimension, and there is transport of environmental state variables across geographical space due to natural processes. In this paper we study dynamic optimization for the joint management of resources and pollution when pollution affects resource growth and when spatial transport phenomena both for the resources and the pollution are present. We present approaches that deal with dynamic optimization in infinite dimensional spaces which can be used as tools in environmental and resource economic. We also present methods which can be used to study the emergence of spatial patterns in dynamic optimizations models. Our methods draw on the celebrated Turing diffusion induced instability but are different from Turing�s mechanism since they apply to forward-optimization models. We believe that this approach provides the tools to analyze a wide range of problems with explicit spatial structure which are very often encountered in environmental and resource economics. |
| Keywords: | Spatial transport, renewable resource, pollution, optimization, infinite dimensional spaces, Tiring instability, patter formation, policy design |
| JEL: | C61 Q20 Q52 |
| Date: | 2015–10–29 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:1516&r=env |
| By: | Caillavet, F.; Darmon, N.; Fadhuile, A.; Nichele, V. |
| Abstract: | The environmental impact of food is a major concern for climate change. This paper estimates the CO2 emissions due to food purchases of French households and analyses the disparities between income classes. To combine environment with health concerns, we consider as well the caloric content of foods and normalize CO2 emissions on a daily 2000kcalories basis. Data on French food purchases come from Kantar 1998-2010. Using Life-Cycle-Analysis from Greenext, we obtain CO2equivalent emissions for different food groups. Then we adjust levels of emissions by linear regression on income and age. We find that CO2 emissions of food purchases amount to 3.9kg/day/household. Lowest-income households emit more CO2 compared to richest households (+14.7%), but less on an adjusted 2000kcal basis (-9.6%). In a public policy perspective, richer households should be the first target of diet change since their consumption favours higher CO2 emitting food groups than lower-income households, at caloric level constant. |
| Keywords: | CO2 emissions, Food purchases, Income disparities., Consumer/Household Economics, Environmental Economics and Policy, Q56, Q18, Q58, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211382&r=env |
| By: | Amanda Barroso Lima (IPC-IG); Isadora Cardoso Vasconcelos (IPC-IG); Pedro Vasconcelos Rocha (IPC-IG) |
| Abstract: | "Through the lens of the three dimensions of sustainable development?social, economic and environmental?it is possible to assess the options for family farming to respond to the adverse impacts of climate change in Brazil. As the Intergovernmental Panel on Climate Change (IPCC) Fifth Assessment Report indicates, climate change and/or extreme weather events such as severe droughts, heat waves and heavy rains could intensify the problems faced by family farmers." (?) |
| Keywords: | Climate Change Impacts, Response Options, Family Farmers, Brazil |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:ipc:opager:309&r=env |
| By: | Buschmann, Christoph; Lotze-Campen, Hermann; Rolinski, Susanne; Biewald, Anne |
| Abstract: | Climate change not only entails gradual changes, but also climate variability is predicted to increase. Extreme weather events are expected to affect food security, among other things because yield losses lead to rising food price volatility. We project the potential effect of heat-stress induced yield losses on food price volatility and global economic welfare. For this purpose we use a non-linear partial equilibrium trade model with which we assess global maize, rice, soy and wheat markets. Maize and rice are affected the most, with partially dramatic price volatility increases. In the case of soy, the increase is lower, but still considerable. For wheat, results are mixed. Depending on the scenario, price volatility slightly decreases or significantly increases. Consequences for global economic welfare also strongly depend on the scenario. Losses either increase moderately or they about double. |
| Keywords: | Agribusiness, International Relations/Trade, Marketing, Q02, Q11, Q54, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211377&r=env |
| By: | William Brock; Anastasios Xepapadeas |
| Abstract: | This paper is, to our knowledge, the first paper in climate economics to consider the combination of spatial heat transport and polar amplification. We simplified the problem by stratifying the Earth into latitude belts and assuming, as in North et al. (1981), that the two hemispheres were symmetric. Our results suggest that it is possible to build climate economic models that include the very real climatic phenomena of heat transport and polar amplification and still maintain analytical tractability. We derive optimal fossil fuel paths under heat transport with and without polar amplification. We show that the optimal tax function depends not only on the distribution of welfare weights but also on the distribution of population across latitudes, the distribution of marginal damages across latitudes and cross latitude interactions of marginal damages, and climate dynamics. We also determine optimal taxes per unit of emission and show that, in contrast to the standard results suggesting spatially uniform emission taxes, poorer latitudes should be taxed less per unit emissions than richer latitudes. |
| Keywords: | Climate change, Heat transport, Polar Amplification, Welfare maximization, fossil fuels, optimal taxation. |
| JEL: | Q54 Q58 C61 |
| Date: | 2015–10–25 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:1515&r=env |
| By: | Beach, Robert; Zhang, Yuquan; Baker, Justin; Hagerman, Amy; McCarl, Bruce |
| Abstract: | This study used a partial equilibrium model focusing on U.S. agriculture to investigate the climate change implications for U.S. livestock production. Climate change impacts on crop productivity, grazing land productivity, and livestock animals’ biophysical growth were factored into the model to examine the market equilibrium changes under alternative climate change scenarios. Results suggest that the U.S. livestock sector would be negatively influenced by climate change, with meat and milk prices increasing and exports decreasing. Livestock producers would expand the use of grazing and raise more animals to meet market demand given reduced productivity per head. Profit margins for meat and milk production would however decline due to increases in input prices than more than outweigh the gains from higher output prices. |
| Keywords: | Environmental Economics and Policy, Livestock Production/Industries, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211207&r=env |
| By: | Fercovic, Juan; Foster, William; Melo, Oscar |
| Abstract: | The importance of competition between rural and urban uses for water will likely increase, especially in developing countries. We examine residential water demand in the context of a developing country facing the potential climate change effects, with significant changes in incomes, household size, poverty rates and levels of urbanization. Using Chilean municipal-level panel data (1998-2010), we estimate price and income elasticities, and the water-demand response to climate and socio-demographic variables. Impacts of variation in season averages of precipitation and temperature are statistically significant, but only the variation of seasonal average temperature, the temperature deviations about seasonal averages, and the average seasonal rainfall in northern Chile appear to be of practical, economic significance. More urbanized localities have higher per-household water use and reduced sensitivity to temperature variations. Projected water use on average would increase due to climate changes, but by small amounts in the order of one to two percent. |
| Keywords: | block pricing, Chile, climate change, residential water demand, Environmental Economics and Policy, International Development, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211631&r=env |
| By: | Caillavet, F.; Fadhuile, A.; Nichele, V. |
| Abstract: | The global food system is estimated to contribute to 30% of total Greenhouse gas emissions. The issue of how to incentivize consumers modifying their diet is crucial. We consider here food taxation scenarios aiming at reducing environmental emissions through different CO2tax options. Data proceed from Kantar purchases for food-at-home of French households on the 1998-2010 period. Our main result is that a uniform tax scenario, set at a 20% rate, induces a greater emissions reduction than a proportional to emissions tax scenario, based on a 50€/tCO2 carbon cost. Therefore a 20% tax scenario on targeted foods could result in a better incentive to consumer choices in an environmental perspective. Moreover, the implementation of a VAT increase is probably easier than any other tax regulation. |
| Keywords: | carbon tax, food policy, sustainability, Environmental Economics and Policy, Food Consumption/Nutrition/Food Safety, C35, D12, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211381&r=env |
| By: | Hou, Lingling; Huang, Jikun; Wang, Jinxia |
| Abstract: | Farmers’ perceptions of the local climate reflect their awareness of climate change 28 and may affect their adaptation behaviors. However, current literature suffers a 29 knowledge gap on understanding farmers’ perceptions of climate change. This study 30 examines farmers’ perceptions of annual mean temperature, the consistency of these 31 perceptions with meteorological record data, and what influences this consistency. 32 The study found that more than 70% of farmers in China perceived an increasing 33 trend of annual mean temperature over the past 10 years, while only 18% of farmers 34 correctly perceived a decreasing trend, which is consistent with the meteorological 35 record data. Econometric analysis shows that social networks can improve a farmer’s 36 ability to correctly perceive temperature changes. Additionally, those with a larger 37 farm size are more likely to be able to consistently perceive temperature. This paper 38 concludes with several policy and research implications. |
| Keywords: | social networks, farm assets, perception, consistency, climate change, China, Agricultural and Food Policy, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211742&r=env |
| By: | Coderoni, Silvia; Esposti, Roberto |
| Abstract: | This paper firstly proposes a methodology to reconstruct the agricultural GHG emissions and the consequent Carbon Footprint (CF) at the farm level. This allows investigating how the emission performance of Italian farms evolves over time, distinguishing among typologies of farms and territories. Secondly, the paper attempts to put forward some hypotheses explaining the observed heterogeneous evolution of the farm-level CF. In particular, the attention focuses on the possible role of the Common Agricultural Policy (CAP). The empirical analysis concerns a balanced panel of Italian FADN (Farm Accountancy Data Network) farms observed over years 2003-2007. Results, although interesting and encouraging, deliver unclear and ambiguous evidence on the role of the CAP on the observed CF performance and evolution. Several improvements seem needed to achieve more conclusive evidence to make this assessment more sound and robust, in order to inform the debate and the decisions about the proper policies to mitigate agricultural GHG emission. |
| Keywords: | agricultural greenhouse gases emissions, carbon footprint, farm-level data, CAP, Environmental Economics and Policy, O130, Q120, Q150, Q540, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211548&r=env |
| By: | Ricroch, Agnes E.; Henard-Damave, Marie-Cecile |
| Abstract: | Most of the genetically modified (GM) plants currently commercialized encompass a handful of crop species (soybean, corn, cotton and canola) with agronomic characters (traits) directed against some biotic stresses (pest resistance, herbicide tolerance or both) and created by multinational companies. The same crops with agronomic traits already on the market today will continue to be commercialized, but there will be also a wider range of species with combined traits. The timeframe anticipated for market release of the next biotech plants will not only depend on science progress in research and development (R&D) in laboratories and fields, but also primarily on how demanding regulatory requirements are in countries where marketing approvals are pending. Regulatory constraints, including environmental and health impact assessments, have increased significantly in the past decades, delaying approvals and increasing their costs. This has sometimes discouraged public research entities and small and medium size plant breeding companies from using biotechnology and given preference to other technologies, not as stringently regulated. Nevertheless, R&D programs are flourishing in developing countries, boosted by the necessity to meet the global challenges that are food security of a booming world population while mitigating climate change impacts. Biotechnology is an instrument at the service of these imperatives and a wide variety of plants are currently tested for their high yield despite biotic and abiotic stresses. Many plants with higher water or nitrogen use efficiency, tolerant to cold, salinity or water submergence are being developed. Food security is not only a question of quantity but also of quality of agricultural and food products, to be available and accessible for the ones who need it the most. Many biotech plants (especially staple food) are therefore being developed with nutritional traits, such as biofortification in vitamins and metals. The main international seed companies continue to be the largest investors in plant biotechnology R&D, and often collaborate in the developing world with public institutions, private entities and philanthropic organizations. These partnerships are particularly present in Africa. In developed countries, plant biotechnology is also used for non-food purposes, such as the pharmaceutical, biofuel, starch, paper and textile industries. For example, plants are modified to specifically produce molecules with therapeutic uses, or with an improved biomass conversion efficiency, or producing larger volumes of feedstocks for biofuels. Various plant breeding technologies are now used in the entire spectrum of plant biotechnology: transgenesis producing proteins or RNAi. Cisgenesis (transgenes isolated from a crossable donor plant) and intragenesis (transgenes originate from the same species or a crossable species), null segregants are also used. To date, the next generation precision gene editing tools are developed in basic research. They include: clustered regularly interspaced short palindromic repeats (CRISPR), oligonucleotide- directed mutagenesis (ODM), transcription activator-like effects nucleases (TALENs) and zinc-finger nuclease (ZFN). |
| Keywords: | Biofortification, biofuels, climate change, editing, food security, GMO, transgenesis, Crop Production/Industries, Research and Development/Tech Change/Emerging Technologies, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:gmcc15:211484&r=env |
| By: | Stefano Bosi (EPEE, University of Evry); David Desmarchelier (LEM, University of Lille) |
| Abstract: | Since Heal (1982), there is a theoretical consensus about the occurrence of limit cycles (through a Hopf bifurcation) under a positive effect of pollution on consumption demand (compensation effect ) and about the impossibility under a negative effect (distaste effect ). However, recent empirical evidence advocates for the relevance of distaste effects. Our paper challenges the conventional view on the theoretical ground and reconciles theory and evidence. The Environmental Kuznets Curve (pollution Þrst increases in the capital level then decreases) plays the main role. Indeed, the standard case à la Heal (limit cycles only under a compensation effect ) only works along the upward-sloping branch of the curve while the opposite (limit cycles only under a distaste effect ) holds along the downward-sloping branch. Welfare effects of taxation also change according to the slope of the EKC. |
| JEL: | E32 O44 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:eve:wpaper:15-04&r=env |
| By: | Asfaw, Solomon; McCarthy, Nancy; Lipper, Leslie; Arslan, Aslihan; Cattaneo, Andrea; Kachulu, Mutie |
| Abstract: | This paper assesses farmers’ incentives and conditioning factors that hinder or promote adaptation strategies and evaluates its impact on crop productivity by utilizing household level data collected in 2011 from nationally representative sample households in Malawi. We distinguish between (i) exposure to climatic disruptions, (ii) bio-physical sensitivity to such disruptions, (iii) household adaptive capacity in terms of farmers’ ability to prepare and adjust to the resulting stress, and, finally, (iv) system-level adaptive capacity that serve as enabling factors for household-level adaptation. We employ a multivariate probit (MVP) and instrumental variable technique to model farming practice selection decisions and their yield impact estimates. We find that exposure to delayed onset of rainfall and greater climate variability as represented by the coefficient of variation of rainfall and temperature is positively associated with the choice of riskreducing agricultural practices such as tree planting, legume intercropping, and soil and water conservation (SWC); however, it reduces the use of inputs (such as inorganic fertilizer) whose risk reduction benefits are uncertain. Biophysical sensitivity of plots increases the likelihood of choice of tree planting and SWC. In terms of household adaptive capacity, we find that wealthier households are more likely to adopt both modern and sustainable land management (SLM) inputs; and are more likely to adopt SLM inputs on plots under more secure tenure. In terms of system-level adaptive capacity, results show the key role of rural institutions, social capital and supply-side constraints in governing selection decisions for all practices considered, but particularly for tree planting and both organic and inorganic fertilizer. Finally for productivity, we find that on average use of both modern and SLM practices have positive and statistically significant impact on productivity of maize. For SLM practices that also respond to exposure and sensitivity, these results provide direct evidence of their potential to aide households in adapting to further climate change. Results presented have implications for understanding and overcoming barriers to selection for each practice, distinguishing structural aspects such as exposure and sensitivity from potential interventions at the household or systemic levels linked to adaptive capacity. |
| Keywords: | Q01, Q12, Q16, Q18, Environmental Economics and Policy, Climate change, adaptation, impact, Malawi, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:210961&r=env |
| By: | Annaert, Bernd; Vranken, Liesbet; Mathijs, Erik |
| Abstract: | The environmental impact of apple cultivation practices in Belgiium is evaluated based on FADN data from 2010-2012 for 64 farms. The study evaluates integrated production, the most common practice, and it compares this production method with conventional production and a small number of organic producers. A life cycle approach was used to assess the environmental impacts of these farms. Impacts related to the categories 'acidification', 'eutrophication' and 'global warming potential' were monetixed based on the shadow price method in order to obtain external costs. External costs increase the production costs at least with 5 percent. both when they are expressed per kilogram and per hectare. No significant improvement in environmental costs were found for integreated farms compared to conventional farms. The findings showed however a large variability in costs per farm. Farm specific practices have therefore an important influence on the total environmental cost rather than production group specific practices. |
| Keywords: | Crop Production/Industries, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:210952&r=env |
| By: | Rodrigues Cabral, Caroline; Gurgel, Angelo; Paltsev, Sergey |
| Abstract: | Brazil has committed itself to reduce its greenhouse gas (GHG) emissions by 36.1% and 38.9% compared to projected emissions for 2020. In order to accomplish this, the deforestation in the Amazon will have to be reduced by 80% and in the savannah region (Cerrado) by 40% by that year. Concurrently, Brazil is the country with the greatest potential to increase its agricultural production and contribute to the challenge of feeding an increasing world population. Moreover, agribusiness is a key sector of the Brazilian economy for income generation and promotion of foreign exchange. This article discusses the economic impact of a restrictive policy of deforestation on the agricultural and livestock sector and the national economy using a computable general equilibrium model. The results point to low losses in GDP from the limited deforestation scenario as compared with the baseline, but non negligible impacts in the agricultural, livestock and food sector. |
| Keywords: | Deforestation, Land use changes, Agriculture and livestock, General equilibrium., Environmental Economics and Policy, Q15, O13, D58, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211378&r=env |
| By: | Asfaw, Solomon; Savastano, Sara |
| Abstract: | The main objective of this mini symposium is to present the results and ongoing work of a cross-country study of the impact of climate/weather shocks on household welfare and the potential value/role of social protection and climate-smart agriculture as a means to insure households under increasing climate shocks. This work is being carried out by the Food and Agriculture Organization of the United Nations (FAO) in conjunction with the Centre of Economic and International Studies at the University of Rome Tor Vergata. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:210963&r=env |
| By: | Alina Pohl |
| Abstract: | This research investigates eco-clusters as driver for greening regional economic policy and examines necessary incentive structures to foster eco-innovation as well as growth and employment in the eco-industry sector. Eco-clusters are seen in context with sustainability and environmental friendly behavior as means for a socio-ecological transition in the long run. The main hypothesis implies that eco-clusters have to be policy driven and established top-down and therefore differ from cluster structures in other industries. Possible reasons are uncertainty on a developing market as well as external effects of eco-innovations; the latter are seen as radical innovations. Based on theoretic findings for the establishment of clusters and general research findings for eco-clusters and eco-innovations, it is differentiated between a spontaneous cluster emergence from private initiatives through self-reinforcing forces of companies in a region (bottom-up), and the formation of a policy-driven network with primarily regional objectives to stimulate the competitive advantage of the regional industrial location (top-down). The hypothesis will be proofed by empirical results gained through personal interviews and complemented by findings in current research literature. Finally, implications for incentive structures to green economic policy are identified. It is shown that eco-clusters are different to other clusters and crucial for a long-term sustainable change and thus need political commitment and public incentives. For empirical observation, eco-clusters in Austria were selected. This research relates to the ongoing debate on green growth and develops policy incentives for establishment of eco-clusters and thus greening of economic policy. |
| Keywords: | Cluster Analysis, Ecological Cluster, Ecological Innovations, Regional Economic Policy, top-down vs. bottom-up |
| JEL: | C38 I31 O31 O44 Q01 Q55 Q58 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:feu:wfeppr:y:2015:m:10:d:0:i:27&r=env |
| By: | Hancevic, Pedro |
| Abstract: | This paper measures the impact of the 1990 Clean Air Act Amendment on productivity and output of US coal-fired boilers. The Act led to power units adopting a number of different pollution abating strategies, one of which was an input change to lower SO2 emitting coal. A key feature is that each boiler is designed to burn a particular variety of coal, with significant deviations from the targeted coal characteristics resulting in productivity loss. The main innovation of the paper is to quantify the effect that switching to cleaner coal had on productivity and output. With data spanning over fifteen years, I incorporate the effect of this deviation directly into a production function to explicitly quantify the resulting productivity loss. Estimated output losses range from 0% to more than 6%, varying across regions, over time, and mainly depending on the proximity of generating units to low-sulfur sources. |
| Keywords: | productivity, production function, environmental regulation, sulfur dioxide, electricity generation, coal, Environmental Economics and Policy, Production Economics, Productivity Analysis, D24 L94 L51 Q51, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211704&r=env |
| By: | Hitayezu, Patrick; Wale, Edilegnaw; Ortmann, Gerald |
| Abstract: | On-farm tree cultivation is considered an important strategy to mitigate detrimental environmental impacts of agricultural land-use change (ALUC). In South Africa, however, little is known about farm-level incentives and constraints that govern ALUC decisions among small-scale farmers. To address this knowledge gap, this study employs a mixed multinomial logit (MMNL) model by using a combination of revealed and stated preference data. After correcting for endogeneity, the estimated results show that decisions about ALUC are rationally derived and driven by clear but heterogeneous preferences and trade-offs between crop productivity, food security and labour saving. The results further show that the decision to plant sugarcane is constrained by landholding, whilst farmland afforestation is negatively influenced by household size. Decisions to convert land use are also driven by the behaviour of peer groups and agro-ecological conditions. Based on these findings, important policy implications for sustainable land use are outlined. |
| Keywords: | Agribusiness, Land Economics/Use, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211736&r=env |
| By: | Cisneros, Elias; Zhou, Sophie; Borner, Jan |
| Abstract: | Deforestation in the Brazilian Amazon has dropped substantially after a peak at over 27 thousand square kilometers in 2004. Starting in 2008, the Brazilian Ministry of the Environment has regularly published blacklists of critical districts with high annual forest loss. Farms in blacklisted districts face stricter registration and environmental licensing rules. In this paper, we quantify the impact of blacklisting on deforestation. We first use spatial matching techniques using a large set of covariates to identify appropriate control districts. We then explore the effect of blacklisting on change in deforestation in double difference regression analyses using panel data covering the period from 2002-2012. Several robustness checks are conducted including an analysis of field-based enforcement missions as a potential causal mechanism behind the effectiveness of the blacklist. We find that the blacklist has considerably reduced deforestation in the affected districts even after controlling for in situ enforcement activities. |
| Keywords: | deforestation, impact evaluation, matching, Environmental Economics and Policy, Q32, Q15, Q38, Q5, H43, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211547&r=env |
| By: | Cristina Cattaneo; Giovanni Peri |
| Abstract: | Climate change, especially the warming trend experienced by several countries, could affect agricultural productivity. As a consequence the income of rural populations will change, and with them the incentives for people to remain in rural areas. Using data from 116 countries between 1960 and 2000, we analyze the effect of differential warming trends across countries on the probability of either migrating out of the country or from rural to urban areas. We find that higher temperatures increased emigration rates to urban areas and to other countries in middle income economies. In poor countries, higher temperatures reduced the probability of emigration to cities or to other countries, consistently with the presence of severe liquidity constraints. In middle-income countries, migration represents an important margin of adjustment to global warming, potentially contributing to structural change and even increasing income per worker. Such a mechanism, however, does not seem to work in poor economies. |
| JEL: | F22 Q1 R12 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21622&r=env |
| By: | Czekaj, Tomasz |
| Abstract: | This paper investigates the technical efficiency of Polish dairy farms producing environmental output using the stochastic ray function to model multi-output – multi-input technology. Two general models are considered. One which neglects the provision of environmental output and one which accounts for such output. The main focus is on the estimation of technical efficiency of farms producing the environmental output. Since some farms do not provide such output at all, the stochastic ray frontier functions are estimated to overcome the problem of the zero valued dependent variables which often occur when the Translog output distance function is used. The detailed results of the technical efficiency analysis show that, although the estimated efficiencies from the models which neglect the environmental output and those which account for the output are rather similar on average, the rankings based on these efficiencies differ. |
| Keywords: | Environmental Economics and Policy, Farm Management, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211555&r=env |
| By: | Aubert, Magali; Enjolras, Geoffroy |
| Abstract: | This article deals with the presumed relationship between environment-friendly practices, such as organic farming, and the adoption of short food supply chains (SFSC) at farm level because they meet the consumers’ expectations in terms of quality and proximity. Calling on the literature, we formulate hypotheses about the close link between the environmental quality of production and vertical integration. They are tested using an econometric model with simultaneous equations considering the 2010 census of French farms which provides a full overview of strategies implemented by producers. We focus the analysis on wine-growing and arboriculture which correspond to farms most concerned by organic farming. The results show that when a farmer practices organic farming, the farm becomes integrated and conversely when a farm is integrated, the farmer is likely to adopt organic farming. This complementarity of producers’ choices offers certain perspectives for the improvement of SFSC while considering environment-friendly practices. |
| Keywords: | Organic farming, Short food supply chains, FADN, France, Farm Management, Food Security and Poverty, Q12, Q13, Q15, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211623&r=env |
| By: | Karen Clay; Joshua Lewis; Edson Severnini |
| Abstract: | This paper uses the 1918 influenza pandemic as a natural experiment to examine whether air pollution affects susceptibility to infectious disease. The empirical analysis combines the sharp timing of the pandemic with large cross-city differences in baseline pollution measures based on coal-fired electricity generating capacity for a sample 183 American cities. The findings suggest that air pollution exacerbated the impact of the pandemic. Proximity to World War I military bases and baseline city health conditions also contributed to pandemic severity. The effects of air pollution are quantitatively important. Had coal-fired capacity in above-median cities been reduced to the median level, 3,400-5,860 pandemic- related infant deaths and 15,575-23,686 pandemic-related all-age deaths would have been averted. These results highlight the complementarity between air pollution and infectious disease on health, and suggest that there may be large co-benefits associated with pollution abatement policies. |
| JEL: | I15 I18 N32 N52 Q40 Q53 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21635&r=env |
| By: | Wei Jin (School of Public Policy, Zheijang University); ZhongXiang Zhang (College of Management and Economics, Tianjin University) |
| Abstract: | In creating a level playing field that facilitates the deployment of renewable energy technology (RET), the traditional energy policy regime based on eliminating RET’s cost gaps versus fossil energy technology (FET) may be not sufficient. Building on an economic model of energy technology adoption that features network externality, this paper takes an explicit account of the potential importance of network externality in the design of RET adoption policies. We argue that as incumbent FET has established pervasive deployment and installed base advantages within the existing energy production, distribution and service network, it would create a network externality mechanism that makes it difficult to dislodge the dominant FET-based technological regime, leading to an inertia against the adoption of newly emerging RET even if energy policy regulations have been put in place to eliminate RET’s cost disadvantage. We hence propose that a reformulation of RET policy paradigm should consider extending the traditional scheme centring on eliminating cost gap to a new one that corrects for both cost and network externality gaps. |
| Keywords: | renewable energy deployment; energy technology adoption; network externality; climate technology policies |
| JEL: | Q41 Q42 Q48 Q54 Q55 Q58 H23 O13 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:een:ccepwp:1509&r=env |
| By: | Michée Arnold Lachaud; Boris E. Bravo-Ureta; Carlos E. Ludeña |
| Abstract: | This study estimates Climate Adjusted Total Factor Productivity (CATFP) for agriculture in Latin America and Caribbean (LAC) countries, while also providing comparisons with several regions of the world. Climatic variability is introduced in Stochastic Production Frontier (SPF) models by including average annual maximum temperature, precipitation and its monthly intra-year standard deviations, and the number of rainy days. Climatic conditions have a negative impact on production becoming stronger at the end of the 2000s compared to earlier periods. An Error Correction Model is applied to investigate catch-up and convergence across LAC countries. Argentina defines the frontier in LAC and TFP convergence is found across all South American countries, Costa Rica, Mexico, Barbados and The Bahamas. Using IPCC 2014 scenarios, the study shows that climatic variability induces significant reductions in productivity (2.3% to 10.7%), over the 2013-2040 period. Estimated output losses due to climatic variability range from 9% to 20% in the LAC region depending on the scenario considered. |
| Keywords: | Agricultural policy, Agricultural technology adaptation, Agricultural technology transfer, Agricultural productivity, Climate Change, Climate Variability, Climate Change, Agricultural Policy, Agricultural Productivity |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:91036&r=env |
| By: | Lachaud, Michee; Bravo-Ureta, Boris; Ludena, Carlos |
| Abstract: | This study estimates a Climate Adjusted Total Factor Productivity (CATFP) for agriculture in Latin America and Caribbean (LAC) countries. Climatic variability is introduced in SPF models by including average annual maximum temperature, precipitation and its monthly intra-year standard deviations, and the number of rainy days. Climatic conditions have a negative impact on production becoming stronger at the end of the 2000s compared to earlier periods. An Error Correction Model is applied to investigate catch-up and convergence across LAC countries. Argentina defines the frontier in LAC and CATFP convergence is found across all South American countries, Costa Rica, Mexico, Barbados and The Bahamas. Using IPCC 2014 scenarios, the study shows climatic variability induces significant reductions in productivity over the 2013-2040 period. Estimated productivity losses due to climatic variability range from USD 12.7 to 89.1 billion in the LAC region depending on the scenario and the discount rate. |
| Keywords: | Agriculture, Total Factor Productivity, Climate Effects, Convergence, Forecasting, Latin America, Caribbean, Agricultural Finance, Production Economics, Productivity Analysis, D24, Q54, O47, E27, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211721&r=env |
| By: | Brusselaers, Jan; Buysse, Jeroen; Huylenbroeck, Guido |
| Abstract: | This paper investigates the impact of green public procurement (governments’ purchases) of certified wood in the EU. A spatial price equilibrium model is developed to analyse whether this policy impacts the interregional trade flows of wood and other regions’ economic welfare. The model contains an innovative feature which allows the introduction of consumers’ willingness to pay for certified wood, and producers’ willingness to accept certified wood production. The outcome of the analysis demonstrates that green public procurement of certified wood in one region can create a trade barrier for other regions and decrease their economic welfare. In the worst case scenario, the forced increase of demand for certified wood increases the prices of certified wood. This decreases the relative price of conventional wood which can trigger the production of conventional wood and endanger forest conservation. Cost reductions and adequate financial compensation for certified wood producers can tackle these problems. |
| Keywords: | Environmental Economics and Policy, International Development, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211374&r=env |
| By: | Deokrye Baek; Duha T. Altindag; Naci Mocan |
| Abstract: | Naturally-occurring yellow sand outbreaks, which are produced by winds flowing to Korea from China and Mongolia, create air pollution. Although there is seasonal pattern of this phenomenon, there exists substantial variation in its timing, strength and location from year to year. Thus, exposure to the intensity of air pollution exhibits significant randomness and unpredictability. To warn residents about air pollution in general, and about these dust storms in particular, Korean authorities issue different types of public alerts. Using birth certificate data on more than 1.5 million babies born between 2003 and 2011, we investigate the impact of air pollution, and the avoidance behavior triggered by pollution alerts on various birth outcomes. We find that exposure to air pollution during pregnancy has a significant negative impact on birth weight, the gestation weeks of the baby, and the propensity of the baby being low weight. Public alerts about air quality during pregnancy have a separate positive effect on fetal health. We show that Korean women do not time their pregnancy according to expected yellow dust exposure, and that educated women’s pregnancy timing is not different from those who are less-educated. The results provide evidence for the effectiveness of pollution alert systems in promoting public health. They also underline the importance of taking into account individuals’ avoidance behavior when estimating the impact of air quality on birth outcomes. Specifically, we show that the estimated impact of air pollution on infant health is reduced by half when the preventive effect of public health warnings is not accounted for. |
| JEL: | H23 I12 Q51 Q53 Q54 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21613&r=env |
| By: | Juan Robalino (CATIE and Universidad de Costa Rica); Alexander Pfaff (Duke University); Laura Villalobos (University of Gothenburg) |
| Abstract: | Spillovers can significantly reduce or enhance the effects of land-use policies, yet there exists little rigorous evidence concerning their magnitudes. We examine how national parks within Costa Rica affect the clearing of forest nearby. We find that average deforestation spillover impacts are not significant within 0-5km and 5-10km rings around parks. However, we argue that this average blends multiple spillover effects, each of which is likely to vary in magnitude across the landscape, yielding varied net effects. We distinguish these effects using distances to roads and park entrances, given the importance of transport costs and, for Costa Rica, tourism. We find large and statistically significant leakage close to roads in areas without tourism, i.e., far from the park entrances. In contrast, no leakage is found far from roads or close to park entrances. In sum, the combination of low transport costs and low returns to forest is conducive to deforestation leakage around the parks. |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:fcr:wpaper:201502&r=env |
| By: | Akaichi, Faical; Grauw, Steven de; Darmon, Paul |
| Abstract: | A choice experiment was conducted in Scotland, the Netherlands and France to assess consumers’ preferences and willingness to pay (WTP) for ethical attributes (i.e. fairtrade, organic, lower carbon footprint) of bananas and to find out whether this ethical food attributes are competing in real markets. The results showed that in the three countries consumers are willing to pay a price premium for the three ethical food attributes. The results showed that in the current market situation these ethical foods are not generally competing against each other. Nonetheless, they are likely to become competing for consumer’s money at least when: (1) the price of organic foods is decreased significantly, (2) the price for fairtrade food products is set higher than consumers’ WTP, and (3) bananas labelled has having lower carbon footprint are made available in retail stores and sold at a price lower than consumers’ WTP. |
| Keywords: | Fairtrade, organic, carbon footprint, willingness to pay, competition, choice experiment. JL, Environmental Economics and Policy, D12, Q13, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:210940&r=env |
| By: | W. Walker Hanlon |
| Abstract: | Mortality was extremely high in the industrial cities of the 19th century, but little is known about the role played by pollution in generating this pattern, due largely to a lack of direct pollution measures. I overcome this problem by combining data on the local composition of industries in Britain with information on the intensity with which industries used polluting inputs. Using this new measure, I show that pollution had a strong impact on mortality as far back as the 1850s. Industrial pollution explains 30-40% of the relationship between mortality and population density in 1851-60, and nearly 60% of this relationship in 1900. Growing industrial coal use from 1851-1900 reduced life expectancy by at least 0.57 years. A back-of-the envelope estimate suggests that the value of this loss of life, expressed as a one-time cost, was equal to at least 0.33-1.00 of annual GDP in 1900. Overall, these results show that industrial pollution was a major cause of mortality in the 19th century, particularly in urban areas, and that industrial growth during this period came at a substantial cost to health. |
| JEL: | I10 N33 N53 Q53 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21647&r=env |
| By: | Cong, Rong-Gang; Ekroos, Johan; Smith, Henrik; Brady, Mark |
| Abstract: | It is argued that landscape-scale management (LSM) of habitat is better than farmscale management (FSM) when considering the externality of ecosystem services. Given this advantage, how to regulate individual farmers’ land-use decisions to achieve the LSM solution is an issue of common concern both for farmers and policymakers. Specifically, it needs to be determined if there exists a dominant landuse pattern that characterizes the LSM solution compared to FSM solution. In addition to the area of habitat, we design a land-use pattern index (LPI) to characterize the configuration of habitat and project it onto the sharing-sparing continuum. We find that the LSM solution is characterized by less intensive farming, and configurations of habitat are closer to land sharing. However, as crop dependency on ecosystem-services declines, the land-use patterns with LSM and FSM converge and the configurations of habitat start to resemble to land sparing. In addition, when habitat quality improves the configurations of habitat on the border farms become important. Finally, the less mobile service-providers are, the more farmers should focus on land-use patterns on their own farms. Our indices of land-use patterns could be integrated into the cross-compliance of CAP (Common Agricultural Policy) to better manage ecosystem-service in the future. |
| Keywords: | Land Economics/Use, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211549&r=env |
| By: | Bellora, Cecilia; Bourgeon, Jean-Marc |
| Abstract: | Biotic elements such as pests create biodiversity effects that increase production risks and impede land productivity when agriculture becomes more specialized. We show in a Ricardian two-country trade setup that production specialization is incomplete under free trade because of the decrease in land productivity. Pesticides allow farmers to reduce these effects, but they are damaging for the environment and for human health. When regulating farming practices under free trade, governments face a trade-off: they are induced to restrict pesticides use compared to autarky because national food consumption depends less on them, but they also want to preserve the competitiveness of their agricultural sector on international markets. We show that at the symmetric equilibrium under free trade, restrictions on pesticides are generally more stringent than under autarky. As a result, trade increases the price volatility of crops produced by both countries, and of some or all of the crops that are country-specific depending of the intensity of the biodiversity effects. |
| Keywords: | agricultural trade, food prices, agrobiodiversity, pesticides, Agribusiness, Agricultural and Food Policy, Agricultural Finance, Food Consumption/Nutrition/Food Safety, F18, Q17, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211216&r=env |
| By: | Briggs, Adam; Chowdury, Shyamal |
| Abstract: | We analyse food demand patterns of Indonesian households from a resource intensity perspective, and quantify the impact of changed demand patterns on the use of three major resource inputs – fossil fuel, land and water – in agricultural production. Using Indonesian Family Life Survey (IFLS) data, 13 major food items (which constitute 70% of food expenditure) are categorised into low, moderate and high resource intensity, and income elasticity and Engel curves are estimated for the period from 1997 to 2007. Our results show that income growth in Indonesia is associated with demand patterns that are more resource intensive. By 2007, per capita requirements of fossil fuel, land and water increased by 42.7% (3.13 MJ), 44.9% (1.24 m2) and 50.4% (2.1 KL) respectively relative to 1997. The results imply that at least for Indonesia, changed food demand patterns resulting from economic development will increase the demand for natural resources substantially. |
| Keywords: | Demand analysis, Economic Development, Natural Resource Management, Indonesia, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, D1, O13, Q18, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211538&r=env |
| By: | Appel, Franziska; Ostermeyer-Wiethaup, Arlette; Balmann, Alfons |
| Abstract: | Biogas production affected agricultural and land markets significantly. This paper provides insights in effects of biogas production on farms and farm structures for the period 2012-2026 in two German regions by using the agent-based simulation model AgriPoliS. We compare the agricultural development in both regions under alternative policy scenarios in order to analyze the effects of biogas production and the impact of the latest amendment in the REA in 2014. Our results show that biogas production provides especially for large farms a profitable income opportunity. However, it implies an increasing dependency of these farms on biogas production and their whole production structures change. Due to an increased competition among farms, rental prices rise. This effect threatens particularly smaller biogas farms. The last amendment of the REA in 2014 with a substantial reduction of the support level attenuates partly some of these effects. |
| Keywords: | biogas production, agent-based modelling, Renewable Energy Act, EEG 2.0, Environmental Economics and Policy, Q15, Q18, Q42, C69, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:210956&r=env |
| By: | Chen, Shuai; Chen, Xiaoguang; Xu, Jintao |
| Abstract: | Using a unique county-level panel on single-season rice yield and daily weather outcomes from 1996 to 2009, we examined the impacts of temperature variations on rice yield in China. We have five key findings: (i) in contrast to nearly all previous studies focusing on rice production in tropical/subtropical regions, we discovered that higher daily minimum temperature during the vegetative stage increased rice yield; (ii) consistent with previous assessments, we found that increased daily maximum temperature during the vegetative and ripening stages reduced rice yield; (iii) the impacts of solar radiation and rainfall on rice yield differed across the plant’s growth stages; (iv) estimated weather effects on yield differed by rice variety; and (v) weather variations caused a net economic loss of $21.6-88.2 million during the sample period, depending on model specifications and econometric estimation strategies. |
| Keywords: | agriculture, rice, weather, China, temperature, Crop Production/Industries, Environmental Economics and Policy, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211462&r=env |
| By: | Grovermann, Christian; Schreinemachers, Pepijn; Berger, Thomas |
| Abstract: | Agricultural commercialization in Asia has led to an increased dependence on synthetic pesticides, especially for high-value fruit and vegetable crops. The present study uses the multi-agent modeling software MPMAS to ex-ante assess the impact of different pesticide use reduction strategies. The model is parameterized with data from an intensive and diverse production systems in the mountainous north of Thailand, where the adoption of cash crops has been accompanied by very high levels of pesticide use. The objective of this study is to compare different policy interventions in terms of their impact on pesticide use, farm incomes and land use. The adoption of integrated pest management (IPM) is assessed in combination with tax instruments and with adoption incentives, such as bio-pesticide subsidies and price premiums. The results show that a smart policy package can reduce pesticide use by up to 34% over five years without income trade-offs for farm households. |
| Keywords: | Agent-based modeling, ex-ante assessment, innovation diffusion, pesticide policy, integrated pest management, Crop Production/Industries, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211690&r=env |
| By: | Creamer, Bernado; Enahoro, Dolapo; Kleinwechter, Ulrich; Gbegbelegbe, Sika; Hareau, Guy; Swamikannu, Nedumaran; Nelgen, Signe; Telleria, Roberto; Wiebe, Keith |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211648&r=env |