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on Environmental Economics |
| By: | Armon Rezai; Frederick van der Ploeg |
| Abstract: | A new IAM is used to calculate the optimal tradeoff between, on the one hand, locking up fossil fuel and curbing global warming, and, on the other hand, sacrificing consumption now and in the near future. This IAM uses the Oxford carbon cycle, which differs from DICE, FUND and PAGE in that cumulative emissions are the key driving force of changes in temperature. We highlight how time impatience, intergenerational inequality aversion and expected trend growth affect the time paths of the optimal global carbon tax and the optimal amount of fossil fuel reserves to leave untapped. We also compare these with the adverse and deleterious global warming trajectories that occur if no policy actions are taken. |
| Keywords: | unburnable fossil fuel, cumulative emissions, optimal carbon tax, Oxford carbon cycle, trend growth, intergenerational inequality aversion, time impatience |
| JEL: | H21 Q51 Q54 |
| Date: | 2015–11–19 |
| URL: | http://d.repec.org/n?u=RePEc:eus:ce3swp:0715&r=env |
| By: | Francesco Lamperti; Mauro Napoletano; Andrea Roventini |
| Abstract: | The paper compares the effects of market-based and command-and-control climate policies on the direction of technical change and the prevention of environmental disasters. Drawing on the model proposed in Acemoglu et al. (2012, American Economic Review), we show that market-based policies (carbon taxes and subsidies towards clean sectors) exhibit bounded window of opportunities: delays in their implementation make them completely ineffective both in redirecting technical change and in avoiding environmental catastrophes. On the contrary, we find that command-and-control interventions guarantee policy effectiveness irrespectively on the timing of their introduction. As command-and-control policies are always able to direct technical change toward "green" technologies and to prevent climate disasters, they constitute a valuable alternative to market-based interventions. |
| Keywords: | Environmental Policy, Command and Control, Carbon Taxes, Disasters |
| Date: | 2015–12–28 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2015/34&r=env |
| By: | Dovern, Jonas; Harnisch, Sebastian; Klepper, Gernot; Platt, Ulrich; Oschlies, Andreas; Rickels, Wilfried |
| Abstract: | [Einleitung. Radiation Management als klimapolitische Option?] Naturwissenschaftliche Messungen bestätigen mittlerweile eindeutig eine weltweite Veränderung des Klimas, als dessen wesentliche Ursache die anthropogene Freisetzung von Kohlendioxid (CO2) gilt. Anstrengungen, diese CO2-Emissionen global zu kontrollieren, sind bislang gescheitert, und die auf zukünftigen Emissionspfaden basierenden Schätzungen lassen eine weitere deutliche Zunahme der globalen Temperatur und eine Veränderung des Klimas erwarten. Entsprechend beschränkt sich die klimapolitische Diskussion schon lange nicht mehr allein auf die Vermeidung bzw. Verringerung des Klimawandels (mitigation), sondern hat auch die Anpassung an den Klimawandel (adaptation) in den Blick genommen. Aufgrund der großen Unsicherheiten über die tatsächliche Temperaturreaktion und über nichtlineare Reaktionen innerhalb des komplexen Klimasystems wird seit ein paar Jahren aber auch über direkte technologische Eingriffe in das Klima diskutiert, die es teilweise erlauben, relativ schnell auf den Klimawandel zu reagieren. Grundsätzlich werden diese Technologien unter dem Sammelbegriff Climate Engineering (CE) zusammengefasst. Dabei soll der Teilbegriff Engineering aber nicht die ingenieurstechnische Kontrolle des Klimas suggerieren sondern verdeutlichen, dass diese Eingriffe gezielt vorgenommen werden, um das Klima zu beeinflussen bzw. den Klimawandel zu begrenzen. Dabei umfasst der Sammelbegriff Climate Engineering sowohl Technologien zur ursächlichen Rückführung des Strahlungsantriebs, welche die Konzentration des atmosphärischen CO2 (und ggf. anderer Treibhausgase) senken, als auch Technologien zur symptomatischen Kompensation des Strahlungsantriebs, welche die Strahlungsbilanz direkt beeinflussen. Erstere werden als Carbon Dioxide Removal (CDR) bezeichnet und die zweite Technologiegruppe als Radiation Management (RM). [...] |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwkdp:549-550&r=env |
| By: | Raitzer, David A. (Asian Development Bank); Samson, Jindra Nuella G. (Asian Development Bank); Nam, Kee-Yung (Asian Development Bank) |
| Abstract: | Myanmar’s long isolation from international markets and sources of finance historically limited development, and thus, the pressure on its environment. Many of its resources remain relatively intact, despite an absence of effective environmental regulations. Yet, as the country integrates into the global economy and its economic development accelerates, resource degradation is rising rapidly. Deforestation of closed forests in recent years has taken place at the fastest rate among major Southeast Asian countries, much of it driven by concessions for plantations and other large-scale projects. Marine capture fishing pressure has increased rapidly, and the sustainability of catches is largely unknown. Water and air pollution effluents and emissions are escalating. At the same time, policy responses to date, while emphasizing overall sustainability, need to be developed to address these issues. Environmental impact assessment procedures, environmental quality standards, emissions regulations, and penalties for environmental violations remain under development. Perverse incentives for resource destruction are still in place and efforts to create market incentives for sustainable practices are at an initial stage. To ensure long-run, sustainable economic development, Myanmar’s reforms need to address these issues more quickly and comprehensively. |
| Keywords: | deforestation; environmental protection and conservation; Myanmar; pollution management; vulnerability to climate change |
| JEL: | O13 O44 Q15 Q56 |
| Date: | 2015–12–14 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbewp:0467&r=env |
| By: | Maria Chistyakova; Philippe Mahenc |
| Abstract: | We examine how tax avoidance affects the optimal design of a linear tax on polluting emissions in a monopoly setting. The firm is owned by shareholder who differ in their cost of tax dodging. Following Buchanan (1969), the optimal tax should correct for two negative externalities due to pollution and the monopolist’s behavior. The analysis highlights two conflicting effects of tax avoidance on the environmental policy design: a free-riding effect and a tax base erosion effect. With heterogeneous tax avoidance, the regulator must also internalize the externality imposed by the free-riding of tax avoiders on the rest of the society. This free-riding makes the regulator either impotent or unfair, depending on the severity of the environmental damage and the firms’ efficiency. We also show that a two-part tax schedule can achieve the first-best outcome. |
| Keywords: | environmental taxation, monopoly, tax avoidance |
| JEL: | D43 D82 H23 L12 Q28 |
| Date: | 2015–11–19 |
| URL: | http://d.repec.org/n?u=RePEc:eus:ce3swp:0215&r=env |
| By: | Frederick van der Ploeg |
| Abstract: | Unilateral second-best carbon taxes are analysed in a two-period, two-country model with international trade in final goods, oil and bonds. Acceleration of global warming resulting from a future carbon tax is large if the price elasticities of oil demand are large and that of oil supply is small. The fall in the world interest rate weakens this weak Green Paradox effect, especially if intertemporal substitution is weak. Still, green welfare rises if the fall in oil supply and cumulative emissions is strong enough. If the current carbon tax is too low, the second-best future carbon tax is set below the first best to mitigate adverse Green Paradox effects. Unilateral second-best optimal carbon taxes exceed the first-best taxes due to an import tariff component. The intertemporal terms of trade effects of the future carbon tax increase current and future tariffs and those of the current tax lower the current tariff. Finally, carbon leakage and globally altruistic and unilateral second-best optimal carbon taxes if non-Kyoto oil importers do not price carbon or price it too low are analysed in a three-country model of the global economy. |
| Keywords: | unilateral carbon taxes, intertemporal terms of trade, tax incidence, Green Paradox, asset tax, carbon leakage, second best, global altruism, unburnt fossil fuel |
| JEL: | D62 D90 H22 H23 Q31 Q38 Q54 |
| Date: | 2015–11–19 |
| URL: | http://d.repec.org/n?u=RePEc:eus:ce3swp:0415&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, in finite dimensional spaces, Turing instability, pattern formation, policy design |
| JEL: | C61 Q20 Q52 |
| Date: | 2015–11–19 |
| URL: | http://d.repec.org/n?u=RePEc:eus:ce3swp:0515&r=env |
| By: | Huijie Yan (AMSE - Aix-Marseille School of Economics - EHESS - École des hautes études en sciences sociales - Centre national de la recherche scientifique (CNRS) - Ecole Centrale Marseille (ECM) - AMU - Aix-Marseille Université) |
| Abstract: | The goal of sustainable development is far from being achieved in China. In this context, this paper aims to provide an overview of China’s energy, environment and health policies over the past 30 years and discuss whether the previous policies have fully integrated the energy, environment and health issues in its sustainable development agenda. From the overview, we observe that the energy policies accelerating energy industrial upgrading, stimulating development of new energy sources, deregulating energy pricing mechanism, promoting energy saving and seizing the opportunity of green growth are conducive to an improvement of environmental conditions and public health in China. However, the environmental policies are not effectively implemented and subsequently they could not succeed in reducing environmental risks on public health and putting pressure on enterprises to efficiently use energy. The health policies have not taken real actions to focus with any specificity on energy-induced or pollution-induced health problems. |
| Keywords: | energy,environment,health,China |
| Date: | 2015–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01247183&r=env |
| By: | Sergei Mihalischev; Yulia Raskina |
| Abstract: | This paper investigates the relationship between economic development and environmental pollution among Russian regions based on the concept of Environmental Kuznets Curve. It shows how income inequality, growth of GRP and structure of regional economy affect emissions of three pollutants: carbon monoxide, nitrogen dioxide and sulfur dioxide. We estimate a panel data model using the Russian Statistical Agency's data for Russian regions in the period 2000–2013. It is shown that the majority of regions in Russia have not reached a turning point when economic growth leads to decrease in pollution. Growth of the non-manufacturing sector of GRP has either no statistically significant effect on the change in emissions or its impact is ambiguous. The increase in the level of economic inequality in the region is characterized by the decrease in emissions. |
| Keywords: | Environmental Kuznets Curve, regional development, pollution, structural changes in the economy |
| JEL: | Q56 P28 C23 |
| Date: | 2015–11–28 |
| URL: | http://d.repec.org/n?u=RePEc:eus:wpaper:ec0315&r=env |
| By: | Thomas, Vinod (Asian Development Bank); López, Ramón (University of Chile) |
| Abstract: | Intense climate-related disasters—floods, storms, droughts, and heat waves—have been on the rise worldwide. At the same time and coupled with an increasing concentration of greenhouse gases in the atmosphere, temperatures, on average, have been rising, and are becoming more variable and more extreme. Rainfall has also been more variable and more extreme. Is there an ominous link between the global increase of these hydrometeorological and climatological events on the one side and anthropogenic climate change on the other? This paper considers three main disaster risk factors—rising population exposure, greater population vulnerability, and increasing climate-related hazards—behind the increased frequency of intense climate-related natural disasters. In a regression analysis within a model of disaster risk determination for 1971–2013, population exposure measured by population density and people’s vulnerability measured by socioeconomic variables are positively linked to the frequency of these intense disasters. Importantly, the results show that precipitation deviations are positively related to hydrometeorological events, while temperature and precipitation deviations have a negative association with climatological events. Moreover, global climate change indicators show positive and highly significant effects. Along with the scientific association between greenhouse gases and the changes in the climate, the findings in this paper suggest a connection between the increasing number of natural disasters and man-made emissions of greenhouse gases in the atmosphere. The implication is that climate mitigation and climate adaptation should form part of actions for disaster risk reduction. |
| Keywords: | climate; climate hazards; government policy; natural disasters; sustainable development |
| JEL: | C22 Q54 Q56 Q58 |
| Date: | 2015–11–26 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbewp:0466&r=env |
| By: | Rodrigo Harrison; Roger Lagunoff |
| Abstract: | This paper formulates a dynamic model of global carbon consumption in the absence of an effective international agreement. Each period, countries extract carbon from the global ecosystem. A country's output depends both on its carbon usage and on the ecosystem ("stored carbon"). The desired mix of extracted versus stored carbon by each country is determined by its stochastically evolving factor elasticities. We characterize Business-as-usual (BAU) equilibria as smooth, Markov Perfect equilibrium profiles of carbon usage across countries. A BAU equilibrium is shown to generate lower aggregate output and higher carbon use each period than the socially efficient path, although some countries might actually use less carbon under BAU. We characterize properties of tipping points, threshold levels of stored carbon stocks below which the global commons collapses, spiraling downward toward a steady state of marginal sustainability. We show that if the profile of carbon factor elasticities reaches a high enough threshold, a tipping point will be breached. Even in this case, there remains a time span (a "negotiation window") in which a collapse may be averted if the countries agree to implement the efficient profile of carbon usage. |
| JEL: | C73 D82 F53 Q54 Q58 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ioe:doctra:458&r=env |
| By: | Ferrarini , Benno (Asian Development Bank); de Vries , Gaaitzen J. (University of Groningen, the Netherlands) |
| Abstract: | Climate policy pledges and negotiations involve commitments about the reduction of emissions within national borders. However, the rise of global value chains has changed the nature of production and international trade, blurring the attribution of ultimate responsibility for emissions. This paper applies a novel method that examines the change in territorial emissions due to changes in energy intensity, supply chain participation, and domestic and foreign consumption. Our findings suggest that rising levels of domestic consumption are related to increased carbon dioxide emissions in both advanced and emerging economies. A substantial share of emissions growth in emerging economies is accounted for by higher participation in global production networks that serve expanding foreign consumption. However, even for economies that most rapidly integrated in global production networks, such as the People’s Republic of China, rising domestic consumption accounts for the bulk of territorial emissions. Improved energy efficiency partially stemmed the spike in emissions from higher consumer demand. |
| Keywords: | global multiregional input–output model; global value chains; structural decomposition analysis; World Input–Output Database |
| JEL: | D57 E01 F18 Q56 |
| Date: | 2015–10–14 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbewp:0458&r=env |
| By: | Stefano Bosi; David Desmarchelier |
| 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 first 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: | 2015–11–19 |
| URL: | http://d.repec.org/n?u=RePEc:eus:ce3swp:0315&r=env |
| By: | Guilherme de Oliveira; Gilberto Tadeu Lima |
| Abstract: | This paper develops an environmental extension of a Lewis dual economy model, in which the interaction between environmental quality and economic growth, in one of its several dimensions, is explicitly modeled to explore long-run effects of a pollution abatement rule in developing economies. The government requires the Modern sector to dedicate a fraction of its output to pollution abatement, with such profitability-reducing fraction being endogenous to the level of environmental quality. Meanwhile, the level of environmental quality positively affects labor productivity, profits and, therefore, savings, which has a positive impact on capital accumulation. It is shown that this pollution abatement requirement, by affecting profitability in the Modern sector both negatively and positively, makes for the emergence of an ecological development trap from which a developing dual economy, if left to the free play of its structural forces, never escapes. Fortunately, however, this economy can be released from such a trap not only through a standard Big Push, in the spirit of Rosenstein-Rodan, but also by means of what we call an Environmental Big Push. |
| Keywords: | Ecological development trap; Environmental Big Push; Economic development; Environmental quality. |
| JEL: | O11 O44 Q50 |
| Date: | 2015–12–21 |
| URL: | http://d.repec.org/n?u=RePEc:spa:wpaper:2015wpecon49&r=env |
| By: | Bachev, Hrabrin |
| Abstract: | This paper gives an answer to important questions such as: „what is sustainability of farms?“ and „how to assess sustainability of farms?“. First, evolution of the “concept” and the major approaches for assessing sustainability of farms is discussed. More adequate definition of the farm sustainability is suggested as ability of a particular farm to maintain its governance, economic, social and ecological functions in a long term. Next, a specific for the conditions of Bulgarian farms framework for assessing farm sustainability is proposed. The later includes a system of appropriate principles, criteria, indicators, and reference values for evaluating governance, economic, ecological and social aspects of farms sustainability as well as an approach for their integration and interpretation. The ultimate objective of this study is to work out an effective framework for assessing sustainability of farms in the specific economic, institutional and natural environment of farms of different types and location, assist farm management and strategies, and agricultural policies and forms of public intervention in agriculture. |
| Keywords: | farm sustainability, governance, economic, social, ecological aspects, framework for assessment |
| JEL: | Q10 Q12 Q13 Q15 Q18 Q2 Q20 Q3 Q5 Q51 Q52 Q53 Q54 Q56 Q57 Q58 |
| Date: | 2015–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:68575&r=env |
| By: | John Curtis; Brian Stanley |
| Abstract: | Using on-site survey data from sea, coarse and game angling sites in Ireland, this paper estimates count data models of recreational angling demand. The models are used to investigate the extent to which anglers are responsive to differences in water quality, with the water quality metric defined by the EU’s Water Framework Directive. The analysis shows that angling demand is greater where water quality has a higher ecological status, particularly for anglers targeting game species. However, for coarse anglers we find the reverse, angling demand is greater in waters with lower ecological status. On average, across the different target species surveyed, anglers have a willingness to pay of €371 for a day’s fishing. The additional benefit of angling in waters with high versus low ecological status was the highest for game anglers at a mean of €122 per day. |
| Date: | 2015–12 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp521&r=env |
| By: | Landstra, Ynze; Kragt, Marit E. |
| Abstract: | This work was undertaken to fulfil the Internship requirements of Mr. Landstra’s MSc degree (Environmental Economics and Natural Resources) at Wageningen University. |
| Keywords: | Climate change mitigation, Carbon Farming Initiative, Choice experiments, Auxillary benefits, Australia, Emission Reduction Fund, Environmental Economics and Policy, Q51, Q54, Q57, |
| Date: | 2015–12–19 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uwauwp:229286&r=env |
| By: | Mauro Vigani (European Commission – JRC - IPTS); Manuel Gomez-Barbero (European Commission – JRC - IPTS); Emilio Rodríguez-Cerezo (European Commission – JRC - IPTS) |
| Abstract: | The report presents the results of a survey conducted on 700 wheat farmers in France and Hungary. The survey aimed to single out the most critical elements at the base of wheat productivity, collecting information for the growing seasons 2010/2011, 2011/2012 and 2012/2013. Two types of data are obtained: farmers’ opinions on the determinants of wheat productivity; quantitative data on wheat output, production factors, marketing strategies, damages, and field and risk management practices. Through descriptive statistics, the report revealed important and significant differences between the countries. According to French farmers' opinion, the most important wheat yield determinants at national level are seasonal weather and soil quality; while Hungarians addressed climate change and seasonal weather. At the farm level, the high prices of inputs and the low wheat market prices are considered the most constraining factors in both countries. Wheat yields are positively correlated to higher agro-chemicals use in Hungary and to additional days of labour in France. The adoption of precision farming provides 7-12% higher yields in both countries, while yield gains from conservation agriculture and IPM are found in partial adopters. In both countries, the most frequently adopted innovation to increase wheat yields and grains' quality are new wheat varieties, however farmers’ willingness to adopt genetically modified wheat varieties is opposite: positive in France and negative in Hungary. Finally, both farmers perceive market risks as more detrimental than natural disasters. While crop insurance is the most adopted tool to deal with natural risks in both countries, French farmers adopt diversification strategies more frequently than Hungarians to deal with market risks. |
| Keywords: | Wheat, Productivity, Yield, Innovation, Risk management, Sustainability, European Union, Agricultural policies. |
| JEL: | G22 G32 Q12 Q16 Q18 Q54 Q56 |
| Date: | 2015–12 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc95950&r=env |
| By: | Yuri Yatsenko |
| Abstract: | The paper discusses and explores several prospective economic-environmental models with separate investments into mitigation and adaptation. The offered model generates essential implications about associated long-term environmental policies such as the optimal adaptation/mitigation ratio. The author focuses on an analytic model of two countries in competitive and collaborative cases. |
| Keywords: | environmental adaptation, mitigation, optimal investment, long-term climate policy |
| JEL: | Q52 Q C61 E22 |
| Date: | 2015–11–19 |
| URL: | http://d.repec.org/n?u=RePEc:eus:ce3swp:0115&r=env |
| By: | Paramita Sinha; Maureen L. Cropper |
| Abstract: | We value climate amenities by estimating a discrete location choice model for U.S. households. The utility of each Metropolitan Statistical Area (MSA) depends on location-specific amenities, earnings opportunities, housing costs, and the cost of moving to the MSA from the household head’s birthplace. We use the estimated trade-off between wages, housing costs and climate amenities to value changes in mean winter and summer temperatures. We find that households sort among MSAs due to heterogeneous tastes for winter and summer temperature. Preferences for winter and summer temperature are negatively correlated: households that prefer milder winters, on average, prefer cooler summers and households that prefer colder winters prefer warmer summers. Households in the Midwest region, on average, have lower marginal willingness to pay to increase winter and reduce summer temperatures than households in the Pacific and South Atlantic census divisions. We use our results to value changes in winter and summer temperature for the period 2020 to 2050 under the B1 (climate-friendly) and A2 (more extreme) climate scenarios. On average, households are willing to pay 1% of income to avoid the B1 scenario and 2.4% of income to avoid the A2 scenario. |
| JEL: | Q5 Q51 |
| Date: | 2015–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21826&r=env |
| By: | Effrosyni Diamantoudi (Department of Economics, Concordia University); Eftichios S. Sartzetakis (Department of Economics, University of Macedonia) |
| Abstract: | The present paper attempts to bridge the gap between the coop- erative and the non-cooperative approach employed to examine the size of stable coalitions, formed to address global environmental prob- lems. We do so by endowing countries with foresightedness, that is, by endogenizing the reaction of the coalition's members to a deviation by one member. We assume that when a country contemplates with- drawing or joining an agreement, it takes into account the reactions of other countries ignited by its own actions. We identify conditions under which there always exists a unique set of farsighted stable IEAs. The new farsighted IEAs can be much larger than those some of the previous models supported but are not always Pareto efficient. |
| Keywords: | International Environmental Agreements. |
| Date: | 2015–12 |
| URL: | http://d.repec.org/n?u=RePEc:mcd:mcddps:2015_09&r=env |
| By: | Asheim, Geir B. (Dept. of Economics, University of Oslo); Nesje, Frikk (Dept. of Economics, University of Oslo) |
| Abstract: | Are the probable future negative effects of climate change an argument for decreasing the discount rate to promote the interests of future generations? The analysis of the present paper suggests that such stronger intergenerational altruism might undermine future wellbeing if not complemented by collective climate action. In the standard one-sector model of economic growth normatively attractive outcomes will be implemented if each generation has sufficient altruism for its descendants. This conclusion is radically changed in a two-sector model where one form of capital is more productive than the other, but leads to negative atmospheric externalities. In fact, the model shows that, if each dynasty is trying to get ahead in a world threatened by climate change by increasing its intergenerational altruism, then long-term wellbeing will be seriously undermined. |
| Keywords: | Intergenerational altruism; climate change. |
| JEL: | D63 D64 D71 Q01 Q54 |
| Date: | 2015–12–17 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:osloec:2015_022&r=env |
| By: | Katrin Rehdanz (Kiel Institute for the World Economy); Carsten Schroder (German Institute for Economic Research(DIW Berlin)/ SOEP); Daiju Narita (JICA Research Institute); Toshihiro Okubo (Faculty of Economics, Keio University) |
| Abstract: | Using representative household survey data from Japan after the Fukushima accident, we estimate peoples' willingness-to-pay (WTP) for renewable, nuclear, and fossil fuels in electricity generation. We rely on random parameter econometric techniques to capture various degrees of heterogeneity between the respondents, and use detailed regional information to assess how WTP varies with the distance to both the nearest nuclear power plant and to Fukushima. Compared to fossil fuels, we find a positive WTP for renewable and a negative WTP for nuclear fuels. These effects, in absolute terms, increase with the proximity to Fukushima. |
| Keywords: | electricity mix, willingness-to-pay, preference heterogeneity, renewables, spatial heterogeneity, Fukushima, nuclear power |
| JEL: | D12 Q40 Q42 |
| Date: | 2015–12–08 |
| URL: | http://d.repec.org/n?u=RePEc:keo:dpaper:2015-013&r=env |
| By: | Arief Anshory Yusuf (Department of Economics, Padjadjaran University) |
| Abstract: | Climate change mitigation, through the means of energy efficiency improvement, requires all countries to play important roles. Developing countries are not the exception. However, in the context of developing countries, the benefit of energy efficiency improvement need to be measured against a broad range of development indicators. Using a general equlibrium model of the Indonesian economy, we simulate various different energy efficiency scenarios and compare its impact not only on the amount of emissions reduction, but also on other relevant development indicators such as employment creation, poverty incidence and income distribution. The result suggests that energy efficiency improvement which leave more resource available for output expansion is employment-generating, poverty-reducing and can have a favorable distributional implication. For Indonesia, improving fuel efficiency in public road transportation and improving energy efficiency of the energy-intensive manufacturing sector has come out as the key priority areas where energy efficiency strategy should focus on. |
| Keywords: | Energy efficiency, Computable General Equilibrium, Indonesia |
| JEL: | Q40 |
| Date: | 2015–12 |
| URL: | http://d.repec.org/n?u=RePEc:unp:wpaper:201506&r=env |
| By: | Wiesmann, Doris; Biesalski, Hans Konrad; von Grebmer, Klaus; Bernstein, Jill |
| Abstract: | The Global Hunger Index (GHI) is a multidimensional measure of hunger that considers three dimensions: (1) inadequate dietary energy supply, (2) child undernutrition, and (3) child mortality. The initial version of the index included the following three, equally weighted, non-standardized (i.e. unscaled) indicators that are expressed in percent: the proportion of the population that is calorie deficient (FAO’s prevalence of undernourishment); the prevalence of underweight in children under five; and the under-five mortality rate. Several decisions regarding the original formulation of the GHI are reconsidered in light of recent discussions in the nutrition community and suggestions by other researchers, namely the choice of the prevalence of child underweight for the child undernutrition dimension, the use of the under-five mortality rate from all causes for the child mortality dimension, and the decision not to standardize the component indicators prior to aggregation. Based on an exploration of the literature, data availability and comparability across countries, and correlation analyses with indicators of micronutrient deficiencies, the index is revised as follows: (1) The child underweight indicator is replaced with child stunting and child wasting; (2) The weight of one third for the child undernutrition dimension is shared equally between the two new indicators; and (3) The component indicators of the index are standardized prior to aggregation, using fixed thresholds set above the maximum values observed in the data set. The under-five mortality rate from all causes is retained, because estimating under-five mortality attributable to nutritional deficiencies would be very costly and make the production of the GHI dependent on statistics about cause-specific mortality rates by country and year that are published irregularly, while the expected benefits are limited. |
| Keywords: | Global Hunger Index, composite index, food insecurity, child undernutrition, stunting, wasting, underweight, child mortality, micronutrient deficiencies, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, Risk and Uncertainty, |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ubonwp:228856&r=env |
| By: | Damien Sans (AMSE - Aix-Marseille School of Economics - EHESS - École des hautes études en sciences sociales - Centre national de la recherche scientifique (CNRS) - Ecole Centrale Marseille (ECM) - AMU - Aix-Marseille Université) |
| Abstract: | The literature on the micro-economics of the eco-industry often assumed interiority of pollutant net emissions. In a perfectly competitive final good market vertically integrated with an upstream monopoly supply this assumption implies that an optimal tax is always greater than its associated marginal social damage. In this short note we will relax this assumption and challenge that result. The market structure generates a unique threshold on the scale of the marginal social damage, whereby for any value above the threshold an optimal tax is strictly lower and net emissions are zero. |
| Keywords: | microeconomics,eco-industry,imperfect competition,optimal taxation |
| Date: | 2015–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01247190&r=env |
| By: | Philippe Mahenc |
| Abstract: | This paper questions the honesty of third-party certification in the market for a good whose environmental quality is not observable by consumers. The certifier maximizes a weighted sum of its own revenue and social welfare. The higher the relative weight placed on revenue, the stronger the certifiers incentive to mislead consumers. Certification is analyzed as a costly signaling mechanism that, besides displaying labels, transmits information through market prices. Honest certification requires that prices credibly signal environmental quality to prevent cheating. I show that certification can only be honest when the certifier is driven more by social welfare than by profit. In the reverse case, the certifier cannot help jamming the price signal, thereby granting unreliable labels. |
| Keywords: | Bayesian inference, certi fication, credence good, signaling |
| JEL: | D82 Q28 |
| Date: | 2015–11–19 |
| URL: | http://d.repec.org/n?u=RePEc:eus:ce3swp:0615&r=env |
| By: | Shibly Shahrier; Koji Kotani (School of Economics and Management, Kochi University of Technology) |
| Abstract: | Voluntary donation is a major source of public goods provision in the developed countries. Likewise, voluntary donations may be able to contribute to public problems in third world countries such as natural disaster mitigation. However, voluntary sector in third world countries has not been studied, and thus this paper addresses voluntary donations in Bangladesh with a specific eye on natural disaster mitigation. To this end, we conducted a questionnaire survey of 1000 respondents and elicited (i) a willingness to donate their labor (labor donation) and (ii) a willingness to pay (money donation) to collective countermeasures for avoiding the damages from cyclones and associated disasters. With this data, we analyze labor and money donations in relation to socio-economic variables such as income, education, family structure, and occupation using bivariate probit and Tobit regressions. The analysis finds that age, family structure, education, income and occupation are important determinants for Bangladeshi people to decide between labor and money donations as well as their respective amount. The poor and less educated households with the occupations of higher natural resource dependence are identified to contribute a large portion of overall donations via labor. The rich and more educated people are willing to donate money and little labor, but the magnitude of donations is rather small. In summary, labor and money donations exhibit the relation of substitutability with respect to most socio-economic variables, and education and income do not positively affect overall donations in Bangladesh. This finding is in sharp contrast with the studies in USA or Europe, and illustrates a possibility that labor donation is an important channel to natural disaster mitigation that should be utilized for public betterment in third world countries. |
| Keywords: | Voluntary donation, natural disaster, third world country |
| Date: | 2015–12 |
| URL: | http://d.repec.org/n?u=RePEc:kch:wpaper:sdes-2015-25&r=env |
| By: | Emran,M. Shahe; Shilpi,Forhad J. |
| Abstract: | This paper analyzes the effects of land market restrictions on structural change from agriculture to non-farm in a rural economy. This paper develops a theoretical model that focuses on higher migration costs due to restrictions on alienability, and identifies the possibility of a reverse structural change where the share of nonagricultural employment declines. The reverse structural change can occur under plausible conditions: if demand for the non-agricultural good is income-inelastic (assuming the non-farm good is non-tradable), or non-agriculture is less labor intensive relative to agriculture (assuming the non-farm good is tradable). For identification, this paper exploits a natural experiment in Sri Lanka where historical malaria played a unique role in land policy. The empirical evidence indicates significant adverse effects of land restrictions on manufacturing and services employment, rural wages, and per capita household consumption. The evidence on the disaggregated occupational choices suggests that land restrictions increase wage employment in agriculture, but reduce it in manufacturing and services, with no perceptible effects on self-employment in non-agriculture. The results are consistent with the migration costs model, but contradict two widely discussed alternative mechanisms: collateral effect and property rights insecurity. This paper also provides direct evidence in favor of the migration costs mechanism. |
| Keywords: | Economic Theory&Research,Common Property Resource Development,Labor Policies,Rural Development Knowledge&Information Systems,Environmental Economics&Policies |
| Date: | 2015–12–22 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7525&r=env |
| By: | Venkatachalam ANBUMOZHI (Economic Research Institute for ASEAN and East Asia (ERIA)); HAN Phoumin (Economic Research Institute for ASEAN and East Asia (ERIA)) |
| Abstract: | The extreme prevalence of energy poverty in several Member States of Association of Southeast Asian Nations (ASEAN) calls for urgent action. This paper shows how clean energy development can be made inclusive by involving low-income households as producers, employees, and business owners. From this perspective, it also analyses how ASEAN economies are stepping up clean energy ambitions and the implementation deficits. One imperative is (i) clean energy with positive externalities that are not factored in either the production or purchasing decisions of consumers. (ii) If non-clean energy companies or products generate negative externalities but no tax or disincentive is levied, then governments may either tax these firms or give incentives to clean energy producers. It concludes that ASEAN Member States need to link the clean energy paradigm and inclusive development policies as part of the Environmental Fiscal Reform to strengthen the foundations for the ASEAN Socio-Cultural Community. |
| Keywords: | Rural development; employment creation; energy poverty; inclusive growth; ASEAN |
| JEL: | Q34 O13 O23 |
| Date: | 2015–12 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:dp-2015-87&r=env |
| By: | Drupp, Moritz A. (Department of Economics, University of Kiel, Germany); Freeman, Mark C. (School of Business and Economics, Loughborough University, United Kingdom); Groom, Ben (Department of Geography and Environment, London School of Economics, United Kingdom); Nesje, Frikk (Dept. of Economics, University of Oslo) |
| Abstract: | As the most important driver of long-term project evaluation, from climate change policy to infrastructure investments, the social discount rate (SDR) has been subject to heated debate among economists. To uncover the extent and sources of disagreement, we report the results of a survey of over 200 experts that disentangles the long-term SDR into its component parts: the pure rate of time preference, the wealth effect, and the real risk-free interest rate. The mean recommended SDR is 2.27 percent, with a range from 0 to 10 percent. Despite disagreement on point values, more than three-quarters of experts are comfortable with the median SDR of 2 percent, and over 90 percent find an SDR in the range of 1 to 3 percent acceptable. Our disentangled data reveal that only a minority of responses are consistent with the Ramsey Rule, the theoretical framework dominating discounting policy. Instead, experts recommend that governmental discounting guidance should be updated to deal with uncertainty, relative prices, and alternative ethical approaches. |
| Keywords: | Social discount rate; project appraisal; expert opinions; disagreement. |
| JEL: | D61 H43 Q58 |
| Date: | 2015–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:osloec:2015_020&r=env |
| By: | Ariane Cassoli Alvarenga (IPC-IG); Ana Rosa Soares (IPC-IG); Lívia Maria da Costa Nogueira (IPC-IG) |
| Abstract: | "De 27 de abril a 22 de maio de 2015, a Comunidade de Prática (COP) para promover Capacidades Nacionais de Avaliação (NEC ? National Evaluation Capacities), gerenciada pelo Centro Internacional de Políticas para o Crescimento Inclusivo (IPC-IG) e o Escritório de Avaliação Independente do PNUD (IEO), realizou uma discussão online acerca de "Como a Conferência NEC 2015 em Bangkok: 'Unindo Princípios de Avaliação com Práticas de Desenvolvimento' pode ampliar as capacidades nacionais de avaliação e ajudar a desenvolver e atingir os Objetivos de Desenvolvimento Sustentável". A seguir, são apresentadas as ideias-chave que foram compartilhadas pelos participantes sobre como os governos podem desenvolver e fortalecer as capacidades nacionais de avaliação necessárias para se avaliar o desenvolvimento humano sustentável, e qual seria o processo mais eficaz para a identificação de indicadores relacionados a estes temas transversais." (...) |
| Keywords: | Capacidades Nacionais de Avaliação, NEC, Desenvolvimento Humano Sustentável |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:ipc:opport:306&r=env |
| By: | Lupín, Beatriz; Kap, Miriam; Muñoz, Agustina |
| Abstract: | Diversos bienes, como los relacionados con el medio ambiente o con el patrimonio cultural, se denominan de "no mercado" pues carecen de precio al no existir un mercado donde puedan ser transados. Ahora bien, lo anterior no significa que carezcan de valor económico. De hecho, diferentes metodologías permiten estimar la valoración que representa para los individuos su "consumo", centrándose en las características específicas que poseen. Un experimento Choice Modellig es una técnica de captación de datos, mediante la cual, en una situación ficticia pero realista de compra, los consumidores evalúan integralmente el bien en cuestión, considerando distintos niveles de sus atributos. Tomando las preferencias declaradas por los participantes, se basa en el marco conceptual aportado por la Teoría del Consumidor de Lancaster (1966) y por el Modelo de Utilidad Aleatoria (Marschak, 1960). Con los datos así recolectados, la literatura especializada formula modelos econométricos a fin de calcular la disposición a pagar por cada uno de los atributos involucrados -aplicando derivadas parciales- y medidas de cambio de bienestar. La actividad pedagógica a desarrollar tiene como finalidad incluir otros lenguajes, además del coloquial y del simbólico propios de la Matemática y de la Estadística. En este sentido, se les propondrá, a los estudiantes, un recorrido fotográfico y auditivo por espacios significativos vinculados a bienes ambientales y culturales de la Ciudad de Mar del Plata, de manera que profundicen el proceso de comprensión y apropiación de conceptos ligados a la valoración multiatributo, descubriendo las dimensiones relevantes. |
| Keywords: | Disposición a Pagar; Bienes Públicos; Valoración Económica; Enseñanza de la Economía; |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:nmp:nuland:2427&r=env |
| By: | Cutuli, Romina |
| Abstract: | En este artículo analizaré el dilema "crecimiento vs. sostenibilidad" a partir del caso de la industria pesquera en Mar del Plata. Identificaré, a través de la prensa escrita, diferentes usos e interpretaciones de la "crisis" de los recursos pesqueros, realizados por empresarios, trabajadores y organizaciones de la sociedad civil. Las responsabilidades y compromisos sobre el uso de los recursos, su carácter de público-privado, su valor económico y social, son retomados por diversos sectores como estrategia de legitimación de su lugar en la producción, para establecer alianzas y enfrentamientos y ubicarse dentro de campos de poder. Estas controversias serán analizadas a través de la prensa escrita, que consideraré como un elemento fundamental dentro del escenario en el que se desarrolla el conflicto. |
| Keywords: | Industria Pesquera; Crisis; Prensa; Periódicos; Mar del Plata; |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:nmp:nuland:2444&r=env |
| By: | Elvio Accinelli (Facultad de Economía de la UASLP y Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República); Edgar Sánchez Carrera (Facultad de Economía de la UASLP) |
| Abstract: | En este trabajo se considera la llegada de inversores extranjeros a una playa, hasta hora utilizada sólo por residentes locales. La posibilidad de beneficios positivos ante una demanda creciente por servicios hoteleros en el lugar, puede generar conflictos entre la población local y las firmas extranjeras entrantes. Ante esta situación una autoridad administrativa local puede tomar medidas para enlentecer o evitar el surgimiento del mismo. La playa, es considerada como un recurso común, que no puede ser enajenado aunque sí, entregada en concesión para su explotación privada, por la autoridad local. |
| Keywords: | Recursos de propiedad común, empresas turísticas, conflictos locales |
| JEL: | D21 M10 M48 |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:ude:wpaper:0115&r=env |