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on Environmental Economics |
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Issue of 2016‒07‒23
twenty-one papers chosen by Francisco S. Ramos Universidade Federal de Pernambuco |
| By: | Ignacio Pérez Domínguez (European Commission – JRC); Thomas Fellmann (European Commission – JRC); Franz Weiss (European Commission – JRC); Peter Witzke (EuroCARE GmbH); Jesús Barreiro-Hurlé (European Commission – JRC); Mihaly Himics (European Commission – JRC); Torbjörn Jansson (Swedish University of Agricultural Sciences); Guna Salputra (European Commission – JRC); Adrian Leip (European Commission – JRC) |
| Abstract: | The project 'Economic Assessment of GHG mitigation policy options for EU agriculture (EcAMPA)' is designed to assess some aspects of a potential inclusion of the agricultural sector into the EU 2030 climate policy framework. In the context of possible reductions of non-CO2 emissions from EU agriculture, the scenario results of the EcAMPA 2 study highlight issues related to production effects, the importance of technological mitigation options and the need to consider emission leakage for an effective reduction of global agricultural GHG emissions. |
| Keywords: | greenhouse gas emissions, agriculture, mitigation policy, climate policy, EU, CAPRI model, agricultural markets, emission leakage |
| JEL: | Q18 Q58 Q02 Q11 |
| Date: | 2016–06 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc101396&r=env |
| By: | Carattini, Stefano; Tavoni, Alessandro |
| Abstract: | The market for voluntary carbon offsets has grown steadily in the last decade, yet it remains a very small niche. Most emissions from business travel are still not offset. This paper exploits a unique dataset examining the decision to purchase carbon offsets at two academic conferences in environmental and ecological economics. We find that having the conference expenses covered by one's institution increases the likelihood of offsetting, but practical and ethical reservations as well as personal characteristics and preferences also play an important role. We draw lessons from the effect of objections on the use of offsets and discuss the implications for practitioners and policy-makers. Based on our findings, we conclude that ecological and environmental economists should be more involved in the design and use of carbon offsets. |
| Keywords: | Voluntary Carbon Offsetting, Public Goods, Ecological Economics, Environmental Economics, Environmental Economics and Policy, D6, H8, Q4, |
| Date: | 2016–07–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemmi:240749&r=env |
| By: | OECD |
| Abstract: | In recent decades, Israel’s growing population and rising incomes have seen consumption increase substantially, bringing with it considerable pressure on the environment. One of the main environmental pressures is from the ever-increasing transport activity, especially the use of private vehicles. Although travelling in a private vehicle brings benefits to the individual using it, this entails costs to society as a whole. These social costs extend beyond the private costs of the car and the fuel borne by the car user, imposing a burden on public health and the environment. Transport involves noise, local air pollution, and contributes to climate change, congestion, accidents, and wear and tear to infrastructure. All these negatively affect public health and quality of life in general, a fact not taken into account when an individual chooses whether or not to buy a car. This is known as a “market failure”, because the price of a car does not fully reflect the social costs of using it. Governments can correct market failures like these through policies that ensure that the actual costs to society are incorporated within the price of a car, thus influencing consumers’ purchases. This paper describes how Israel developed an innovative scheme to encourage consumers to choose less polluting cars. The Green Tax scheme targets reductions in all polluting vehicle emissions, not only carbon dioxide (CO2). The paper outlines the design process, reflects on the challenges encountered and the environmental, economic and social impacts. It concludes by discussing the wider lessons that are raised for other governments seeking to tackle similar environmental problems. |
| Date: | 2016–07–19 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaac:5-en&r=env |
| By: | Nicoleta CARAGEA (Faculty of Economics, Ecological University of Bucharest); Antoniade Ciprian ALEXANDRU (Faculty of Economics, Ecological University of Bucharest) |
| Abstract: | Climate Change is a process of a global nature facing humanity in this century in terms of environmental protection. Are we doing enough? Will we do enough? The climate change must be analyzed in multidimensional approach, not only as the economic and environmental dimensions of sustainable development, but the social one as well. This paper describes the impact of climate change on one the most important social dimension: the employment. One economic sector, agriculture, will be looked at in particular and a special focus is put on employment. The case study is Romania, a very traditional agricultural country, where one third of the employed population works in agriculture. Data on employment in Romania are provided from Labour Force Survey carried quarterly by National Institute of Statistics; data source on relationship between Europeans and agriculture within the EU is Eurobarometer: Europeans, agriculture and the Common Agricultural Policy (2016). |
| Keywords: | climate change, sustainable development, employment, environment |
| JEL: | J41 Q51 |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:eub:wp2015:2015-02&r=env |
| By: | Roberto Sanchez Rodriguez (University of California Riverside, Department of Environmental Sciences) |
| Abstract: | Reducing vulnerability, preventing disasters and adapting to climate variability and climate change are receiving increasing attention by the international community. Contributions from the international scientific community have expanded knowledge and understanding of these problems, but experiences in communities in developed and developing countries illustrate the difficult transition from conceptual frameworks to successful operational approaches at the local level. This paper presents lessons learned from a recent project in a Mexican city seeking to prevent climate related disasters and to create adaptation to climate variability and climate change within the context of local development. The results of the project stress the importance of a detail and scientifically based analysis of social vulnerability to climate variability and climate change to reduce vulnerability, prevent disasters, and adapt to climate change. The dynamic involvement of local stakeholders along the project illustrates the value of inclusive approaches but also the huge importance of the institutional dimension of climate change adaptation. The presentation compares the lessons from this Mexican city with those in other cities around the world showing that institutional change is one of the major obstacle to adapt to climate change at the local level. |
| Keywords: | adaptation to climate change, preventing disasters, sustainable development |
| JEL: | Q54 R58 R14 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:4006517&r=env |
| By: | ivan Reiner (Faculty of law, University of Zagreb) |
| Abstract: | This article deals with the problem of the importance of taking into account the "full cost of the environment" and its consequences and implementation of the "environmental cost". How to make modern, free markets work for the environment and how to persuade those liberal markets which have the only goal their profit, to fulfill the next goal, the sustainable development? How to implement in the legal system the principle of "polluter pays" which is obligatory for expressing the full cost of a product? What are the legal instruments (regulations and controls), self-regulation and economic instruments which can achieve socio- political and environmental objective of sustainable development? The paper also gives conclusions based on past experiences and links it with the principles of justice and equality. The goal is to give the theoretical and practical instructions for implementing the ecological cost of the product in its full price and, by doing so, fulfilling the goal of sustainable development. |
| Keywords: | sustainable development; free market; legal system; economic instruments; legal; instruments; self regulation; polluter pays |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:4006175&r=env |
| By: | Deniz Aytaç (Hitit University) |
| Abstract: | With the purpose of internalization of the adverse externalities in struggling with the environmental pollution, the government excises several of taxes in different ratios for the varieties of energy. It has been determined in my study that the energy which is an effective source of income and suitable for Ramsey pricing due to its negative elasticity as a public income, has been in an increasing course due to the increase in implied taxes between 1998 and 2014 as well as increase in the price indices along with the policies applied and consequently it has not provide efficient results for the purpose of reduction of greenhouse gas. As a result, the important share of the energy taxes within the price structure yields positive results in terms of creating public revenues, however as far as the international trade is concerned; the implied energy taxes and hence high cost of energy can create a situation where it can hamper the competitiveness of Turkey. For the purpose of tackling target environmental pollution by reducing the carbon emissions, the current tax system with its consumption based structure would not serve to the purpose. Realization of this target may be possible by diversification of taxes and other political tools including emission taxes within the financial system. |
| Keywords: | Energy Prices, Implicit Tax Rates, Greenhouse Gas Emission |
| JEL: | Q48 H20 H23 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:4006384&r=env |
| By: | Michele Imbruno; Tobias Ketterer |
| Abstract: | This paper investigates whether importing intermediate goods improves firm-level environmental performance in a developing country, using data from the Indonesian manufacturing sector. We build a simple theoretical model showing that trade integration of input markets entails energy efficiency improvements within importers relative to non-importers. To empirically isolate the impact of firm participation in foreign intermediate input markets we use ‘nearest neighbour’ propensity score matching and difference-in-difference techniques. Covering the period 1991-2005, we find evidence that becoming an importer of foreign intermediates boosts energy efficiency, implying beneficial effects for the environment. |
| Date: | 2016–06 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp244&r=env |
| By: | Julieta Echeverri Del Sarto (PROBIEN, CONICET-UNCo, PATAGONIA NORTE); María Celeste Gallia (PROBIEN, CONICET-UNCo, PATAGONIA NORTE); Ana Ferrari (PROBIEN, CONICET-UNCo, PATAGONIA NORTE); GUILLERMINA A. BONGIOVANNI (PROBIEN, CONICET-UNCo, PATAGONIA NORTE) |
| Abstract: | Global natural antioxidants market is anticipated to grow on account of its increasing demand in food & beverages, cosmetics, pharmaceutical and animal feed. In this regard, we found high content of flavonoids and antioxidant activity (including antioxidant oligoelements) in the seeds of Araucaria araucana (piñones). However, bulk production of these antioxidants is ecologically non-viable since A. araucana is assessed as endangered species with increased extinction risk based in part by an extensive human harvesting of edible piñones. In this context, plant cell culture represents a useful production alternative to direct extraction of valuable secondary metabolites because: (a) a stable and uniform year-round supply of seed tissues or cells is guaranteed since biomass can be continuously produced in vitro, independent of seasonal variations, (b) selected compounds can be produced under controlled conditions, and moreover, (c) industrial production can be achieved while preserving the species. On the other hand, healthy plants can be easy obtained by micropropagation and then, the new plants can be acclimated to replant degraded areas of logged forest. At present, tissue and cell cultures from leaves and seeds, as well as plants, had been obtained in vitro from A. araucana and other native species. Furthermore, data of optimum conditions for in vitro production of antioxidants are being collected. The aim of these experiments is determine the varieties more adequate for the sustainable bio-based production of natural antioxidants by eco-efficient bio-processes and renewable bioresources. |
| Keywords: | Biotechnology, Sustainability, Conservation, Bioindustry, Bioeconomy |
| JEL: | O31 Q55 Q57 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:4006503&r=env |
| By: | Geoffrey Barrows; Hélène Ollivier |
| Abstract: | We study how market conditions shape aggregate CO2 emission intensity from manufacturing. We first develop a multi-product multi-factor model with heterogeneous firms, variable markups, and monopolistic competition in which each product has a specific emission intensity. Competition affects output shares across heterogeneous firms, product-mix across heterogeneous products, and technological choice within firm-product lines. We find that increased competition shifts production to cleaner firms, but has ambiguous effects on withinfirm changes in emission intensity via product-mix and technology adoption. Next, using detailed firm-product emission intensity data from India, we find core-competency products tend to be cleaner than non-core products; but since market conditions have induced Indian firms to shift production away from core-competency, product-mix has increased CO2 emission intensity in India by 49% between 1990-2010. These emission intensity increases are offset by reductions within firm-product lines and by across-firm share shifts, so aggregate emission intensity has actually fallen by 50%. |
| Date: | 2016–06 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp245&r=env |
| By: | Corey J. A. Bradshaw and Barry W. Brook |
| Abstract: | Australia's high per capita emissions rates makes it is a major emitter of anthropogenic greenhouse gases, but its low intrinsic growth rate means that future increases in population size will be dictated by net overseas immigration. We constructed matrix models and projected the population to 2100 under six different immigration scenarios. A constant 1 per cent proportional immigration scenario would result in 53 million people by 2100, producing 30.7 Gt CO2-e over that interval. Zero net immigration would achieve approximate population stability by mid-century and produce 24.1 Gt CO2-e. Achieving a 27 per cent reduction in annual emissions by 2030 would require a 1.5- to 2.0-fold reduction in per-capita emissions; an 80 per cent reduction by 2050 would require a 5.8- to 10.2-fold reduction. Australia's capacity to limit its future emissions will therefore depend primarily on a massive technological transformation of its energy sector, but business-as-usual immigration rates will make achieving meaningful mid-century targets more difficult. |
| Keywords: | demography, fertility, dependency ratio, emissions, climate change |
| Date: | 2016–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:een:appswp:201622&r=env |
| By: | Horbach, Jens; Janser, Markus (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]) |
| Abstract: | "The environmental sector is supposed to yield a dual benefit: its goods and services are intended to help to tackle environmental challenges and its establishments should create new jobs. However, it is still unclear in empirical terms whether that really is the case. This paper investigates whether employment growth in 'green' establishments with 'green' products and services is higher compared to other establishments. Furthermore, the main factors determining labor demand in this field are analyzed. We use linked employment and regional data for Germany. The descriptive results show that the environmental sector is characterized by disproportionately high employment growth. The application of both a generalized linear mixed model and an instrumental variables regression reveals that especially innovation and industry agglomeration foster employment growth in establishments in the environmental sector. Establishments without green products and services show a smaller increase in employment, even if they are also innovative." (Author's abstract, IAB-Doku) ((en)) |
| Keywords: | Umweltschutzindustrie, Beschäftigungseffekte, Innovation, Arbeitskräftenachfrage |
| JEL: | J23 Q52 Q55 R23 |
| Date: | 2015–05–28 |
| URL: | http://d.repec.org/n?u=RePEc:iab:iabdpa:201516&r=env |
| By: | Paolo Falbo; Cristian Pelizzari; Luca Taschini |
| Abstract: | We investigate the combined effect of an Emission Trading System (ETS) and renewable energy sources on electricity generation investment in energy-only markets. We propose a simple representation of the capacity expansion decision between fossil fuel and renewable production, where electricity demand is uncertain. Increasing renewable capacity creates a tradeoff for large electricity producers: a higher share of renewable production can be priced at the higher marginal cost of fossil fuel production, yet the likelihood of achieving higher profits is reduced because more demand is met by cheaper renewable production. A numerical application of the model shows that producers prefer withholding investments in renewable energy sources, calling into question the long-term efficacy of an ETS in achieving decarbonisation goals. |
| Date: | 2016–07 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp246&r=env |
| By: | Ted Temzelides (Rice University); Borghan Narajabad (Federal Reserve); Bernardino Adao (Banco de Portugal) |
| Abstract: | We study the adaptation of new technologies by renewable energy-producing firms in a dynamic general equilibrium model where energy is an input in the production of goods. Energy can come from fossil or renewable sources. Both require the use of capital, which is also needed in the production of final goods. Renewable energy firms can invest in improving the productivity of their capital stock. The actual improvement is subject to spillovers and comes at the cost of some renewable energy output. Together with spill-overs, this leads to under-investment in improving the productivity of renewable energy capital. In the presence of environmental externalities, the optimal allocation can be implemented through a Pigouvian tax on fossil fuel, together with a policy which promotes adaptation of new renewable technologies. We study numerical examples using world-economy data. |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed016:6&r=env |
| By: | Randy A. Becker |
| Abstract: | Water can be a scarce resource, particularly in certain places at certain times. Understanding both water use and conservation efforts can help ensure that limited supplies can meet the demands of a growing population and economy. This paper examines water use and recirculation in the U.S. manufacturing sector, using newly recovered microdata from the Survey of Water Use in Manufacturing, merged with establishment-level data from the Annual Survey of Manufactures and the Census of Manufactures. Results suggest that water use per unit of output is largest for larger establishments, in part because larger establishments use water for more purposes. Larger establishments are also found to recirculate water more — satisfying demand (water use) without necessarily increasing water intake. Various costs also appear to play a role in water recirculation. In particular, the water circulation rate is found to be higher when water is purchased from a utility. Relatively low (internal) prices for self-supplied water could suppress the incentive to invest in recirculation. Meanwhile, establishments with higher per-gallon intake treatment costs also recirculate more, as might be expected. The cost associated with water discharge – due to regulation or otherwise – also increases circulation rates. The aridity of a locale is found to have little effect on circulation rates. |
| Keywords: | water use, water recirculation, U.S. manufacturing |
| JEL: | Q25 L6 |
| Date: | 2016–06 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:15-16r&r=env |
| By: | Grimm, Michael; Peters, Jörg |
| Abstract: | Solar off -grid technologies have become a lower-cost alternative to grid-based electrification in rural Africa. As a contribution to the United Nations' electricity for all goals, policy currently promotes branded solar products based on the assumption that high-quality standards are necessary. We provide evidence suggesting that nonbranded technologies have already made widespread inroads to rural households. Quality is not necessarily worse, in particular if the considerably lower end-user prices are accounted for. A justification of branded solar promotion programs can thus not only be based on energy access arguments, but rather on environmental concerns related to electronic waste. Moreover, we show that if poorer strata are to be reached, end-user subsidies are required. |
| Keywords: | rural electrification,energy access,energy poverty,technology adoption |
| JEL: | O13 O33 Q41 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:619&r=env |
| By: | Lopamudra Chakraborti (Division of Economics, CIDE); David Ricardo Heres (Division of Economics, CIDE); Danae Hernández Cortés (Division of Economics, CIDE) |
| Abstract: | The averange resident of Mexico City suffers unhealthy levels of air quality for the most part of the year. Nevertheless, the uneven distribution of firms and road traffic across the city, together with wind patterns and differences in microclimates generates localized pollution concentrations. The objective of this study is to investigate wheter residents of Mexico City value cleaner air taking advantage of the variation in pollution levels and land values observed across neighborhoods within the city. Contrary to most studies of this type, commonly focused in developed countries, ours is based on land values reported by external appraisals. The panel nature of our data and inclusion of time varying controls for neighborhood characteristics and local economic conditions allows for correction of potential endogeneity bias arising due to unobserved factors that influence both current pollution levels and property values. Our results suggets that air quality improvements lead to an increase in land values by approximately 3% in Mexico City which is equivalent to a marginal willingsess to pay of up to %178 (2010) pesos per m^2. Thus, we provide an estimate of the possible benefits of public policy dedicated to air quality improvements, measured as the value that Mexico City's residents have for cleaner air. |
| Keywords: | Air Quality, Hedonic Valuation, Willingness to Pay, Environmental amenities, Mexico City |
| JEL: | Q51 Q53 R14 R21 |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:emc:wpaper:dte596&r=env |
| By: | Sebastian Wehrle (Institute for Sustainable Economic Development, University of Natural Resources and Life Sciences Vienna. Wien Energie GmbH); Martin Kniepert (Institute for Sustainable Economic Development, University of Natural Resources and Life Sciences Vienna) |
| Abstract: | Low emission prices have stirred up discussion about political measures that aim to increase emission prices. District heating system operators, often municipal utilities, use a variety of heat generation technologies that are affected by the emission trading system. We examine whether district heating system owners have an incentive to support measures that increase emission prices in the short term. Therefore, we (i) develop a simplified analytical framework to analyse optimal decisions of a district heating operator, and (ii) investigate the market-wide effects of increasing emission prices, in particular the pass-through of emission prices to power prices. Using the clustered unit commitment model MEDEA of the common Austrian and German power system, we estimate a pass-through from emission prices to power prices between 1.1 and 0.75, depending on the absolute emission price level. Under reasonable assumptions regarding heat generation technologies, the pass-through from higher emission prices to power prices is about twice as high as required to make low-emission district heating system owners better off. |
| Keywords: | : Emission Price, Pass Through, Dispatch Model, District Heating, Optimization |
| JEL: | Q41 |
| Date: | 2016–06 |
| URL: | http://d.repec.org/n?u=RePEc:sed:wpaper:642016&r=env |
| By: | Olga Christopoulou (Department of Planning and Regional Development, University of Thessaly); Athanassios Sfougaris (Department of Agriculture Crop Production and Rural Environment, University of Thessaly) |
| Abstract: | The Lesser Kestrel (Falco naumanni) is classified as Vulnerable on the IUCN Red List and the Red Data Book of Greece and listed in Annex I of the EU Wild Birds Directive. The species is a migratory small falcon wintering in Africa, south of Sahara and breeding from south Europe, through Balkans and Turkey, to central Asia. It breeds colonially in buildings inside the villages and feeds on insects (mainly large Orthoptera) in farmland, grasslands, meadows and fallow land. The main part of its population in Greece breeds in the villages of Thessaly plain. It interacts with inhabitants in the nesting sites and farmers and livestock breeders in farms and grasslands/meadows, receiving the effects of applied farming practices. Species ecology depends on the activities of the local population, so their actions and opinions are critical to its conservation and survival. Purpose of the study was to investigate the awareness and attitudes of farmers, livestock breeders and local people regarding practices affecting the conservation of the species. The study took place in villages hosting the most numerous colonies of the species. A number of 250 farmers, livestock breeders and local people were interviewed through a questionnaire structured on 25 questions, 5 of which were asking personal information, while the rest 20 the following data: a) awareness about the species protection status, b) adoption of particular rules on agricultural and livestock practices set by the Life Project concerning the Lesser Kestrel, c) voluntary contribution to conservation activities for the species. Out of 250 questionnaires distributed, 210 were valid. The general conclusion was that the majority of the people interviewed was aware of the species breeding and feeding needs and has a positive attitude to the presence of the species in their farms and buildings. Moreover, they are willing to apply practices that contribute to securing further favourable conditions for the species. |
| Keywords: | Lesser kestrel, farmers, views, attitudes |
| JEL: | Q19 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:4006619&r=env |
| By: | Spencer-Cotton, Alaya; Kragt, Marit Ellen; Burton, Michael |
| Abstract: | This is a report from the Kimberley Research Node Project 2.1.2 “Human values and aspirations for coastal waters of the Kimberley” research project funded by the Western Australian Government and administered by the Western Australian Marine Science Institution. The study area is the Kimberley coastline and waters extending from south western part of Eighty Mile Beach to the Northern Territory border. This research supports the management intentions of the State Government to establish a network of marine parks in the State waters along the Kimberley coast. This report presents the findings of an online choice experiment survey conducted with a range of participants and stakeholders. The online survey comprised of two parts, it was a collaboration with Murdoch University. In the choice experiment, respondents were presented with two active management options, and a third ‘no-action’ option. A particular research focus of this choice experiment is the impact of making the choice experiment questions spatially explicit. Researchers were interested in people’s choices for management options that were linked to a specific region (or ‘management zones’) of the Kimberley coast. In this study the Kimberley region was divided into six management zones, determined in consultation with key stakeholders. The management options contained four spatially specific attributes and an associated management cost. The spatially specific attributes were: percentage of State waters zoned as sanctuary areas; number of Aboriginal rangers, level of average recreational facilities in the region, and whether additional development (as defined using a description and photograph) would occur in the region. Mixed logit models were estimated to account for random taste differences across respondents. Interactions between socio-economic variables and the choice attributes were included to account for systematic heterogeneity. Separate models were estimated for each sample as preliminary analysis suggested there is unlikely to be a single unifying model of preferences, Results suggest that hold values and preferences for the choice attributes presented. Focussing on the key management question of providing marine sanctuary zones in State waters, all models confirmed that increasing the area of sanctuary zones is valued by WA residents. Increasing recreation facilities to a relatively high level was generally not valued or valued negatively. This change reduces welfare especially in the four northern more remote zones (Dampier Peninsula, Buccaneer Archipelago, Camden Sound, and North Kimberley). The same pattern emerges for the coastal development attribute. Coastal development was defined as a relatively small change, representing impact on the sense of remoteness. There was a strong aversion to this change, particularly in the northern zones. Although there was some heterogeneity in preferences, the overall picture that emerges from the analysis is that respondents are prepared to pay to increase environmental protection in coastal waters and wish to avoid development along the coast, even where this would improve current public access. |
| Keywords: | Non-market valuation, Choice experiments, Kimberley, Coastal management, Sense of place, Existence values, Environmental Economics and Policy, Public Economics, Q26, Q51, Q57, |
| Date: | 2016–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uwauwp:240693&r=env |
| By: | Richard S.J. Tol (UK Department of Economics, University of Sussex,UK Institute for Environmental Studies and Department of Spatial Economic, Vrije Universiteit, Amsterdam, The Netherlands Tinbergen Institute, Amsterdam, The Netherlands); Monika Novackova (Department of Economics, University of Sussex, Falmer, UK) |
| Abstract: | We report the first ex post study of the economic impact of sea level rise. We apply two econometric approaches to estimate the past effects of sea level rise on the economy of the USA, viz. Barro type growth regressions adjusted for spatial patterns and a matching estimator. Unit of analysis is 3063 counties of the USA. We fit growth regressions for 13 time periods and we estimated numerous varieties and robustness tests for both growth regressions and matching estimator. Although there is some evidence that sea level rise has a positive effect on economic growth, in most specifications the estimated effects are insignificant. We therefore conclude that there is no stable, significant effect of sea level rise on economic growth. This finding contradicts previous ex ante studies. |
| Keywords: | Sea level rise, Climate change, Barro type growth regression, Economic growth, USA counties, Spatial autoregressive model |
| JEL: | Q54 |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susewp:9516&r=env |