|
on Environmental Economics |
|
Issue of 2016‒12‒18
thirty-six papers chosen by Francisco S. Ramos Universidade Federal de Pernambuco |
| By: | van der Zwaan, B.C.C.; Gerlagh, Reyer (Tilburg University, School of Economics and Management) |
| Abstract: | Public fear over environmental and health impacts of CO2 storage, or over potential leakage of CO2 from geological reservoirs, is among the reasons why over the past decade CCS has not yet been deployed on a scale large enough so as to meaningfully contribute to mitigate climate change. Storage of CO2 under the seabed moves this climate mitigation option away from inhabited areas and could thereby take away some of the opposition towards this technology. Given that in the event of CO2 leakage through the overburden in the case of sub-seabed CCS, the ocean could function as buffer for receiving this greenhouse gas, instead of it directly being emitted into the atmosphere, offshore CCS could also address concerns over the climatic impacts of CO2 seepage. We point out that recent geological studies provide evidence that to date CO2 has been safely stored under the seabed. Leakage for individual offshore CCS operations could thus be unlikely from a technical point of view, if storage sites are well chosen, well managed and well monitored. But we argue that on a global longterm scale, for an ensemble of thousands or millions of storage sites, leakage of CO2 could take place in certain cases and/or countries for e.g. economic, institutional, legal or safety-cultural reasons. In this paper we investigate what the impact could be in terms of temperature increase and ocean acidification if leakage occurs at a global level, and address the question what the relative roles could be of on- and offshore CCS if mankind desires to divert the damages resulting from climate change. For this purpose, we constructed a top-down energy-environment-economy model, with which we performed a probabilistic Monte-Carlo cost-benefit analysis of climate change mitigation with on- and offshore CCS as specific CO2 abatement options. One of our main conclusions is that, even under conditions with non-zero (permille/year) leakage for CCS activity globally, both onshore and offshore CCS should probably – on economic grounds at least - still account for anywhere between 20 % and 80 % of all future CO2 abatement efforts under a broad range of CCS cost assumptions. |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiutis:3b364af4-17f1-4a8b-8869-552620f4c2c4&r=env |
| By: | William D. Nordhaus (Cowles Foundation, Yale University) |
| Abstract: | Climate change remains one of the major international environmental challenges facing nations. Yet nations have to date taken minimal policies to slow climate change. Moreover, there has been no major improvement in emissions trends as of the latest data. The current study uses the updated DICE model to present new projections and the impacts of alternative climate policies. It also presents a new set of estimates of the uncertainties about future climate change and compares the results will those of other integrated assessment models. The study confirms past estimates of likely rapid climate change over the next century if there are not major climate-change policies. It suggests that it will be extremely difficult to achieve the 2°C target of international agreements even if ambitious policies are introduced in the near term. The required carbon price needed to achieve current targets has risen over time as policies have been delayed. |
| Keywords: | Climate change, DICE model, Uncertainty, Social cost of carbon |
| JEL: | Q5 C6 Q54 H41 |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:cwl:cwldpp:2057&r=env |
| By: | United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) South and South-West Asia Office |
| Abstract: | India’s performance on Millennium Development Goal (MDG) 7 targets for environment has varied. India is home to two of the world’s 25 internationally recognized global biodiversity hotspots and is one of only 17 mega-diverse countries. The overall area under biodiversity protection and forest cover has increased but its forest-growing stocks are declining. Although India has still relatively low levels of pollution per capita or per dollar of GDP given its population, it is likely to soon become one of the planet’s largest polluters, with the rapid urbanization that is expected over the next few decades. In the post-2015 period, India will not only need to accelerate achievement on its MDG targets, but also focus on the environment and the negative impact of climate change that threatens to wipe off developmental gains. It needs to pursue an environment friendly growth process to serve its own domestic compulsions and strengthen global climate change mitigation measures. |
| Keywords: | Millennium Development Goals (MDGs), Biodiversity, Environment, India |
| URL: | http://d.repec.org/n?u=RePEc:eap:pbsswa:pb0005&r=env |
| By: | Halkos, George; Zisiadou, Argyro |
| Abstract: | This study relies in the proposed methodology by the Universities of Yale and Columbia for constructing an environmental performance index. Two different versions of the index are considered and compared having as reference point our country (Greece) and comparing it with other countries in the Mediterranean as well as in Northern Europe. Both versions (the one of 2014 and the other of 2016) of the index consists of two components, the environmental health and the ecosystem vitality. These two components are constructed with the help of nine variables (and nineteen indicators behind) relevant to the environment. These variables are health impact, air quality, water and sanitation, water resources, agriculture, forestry, fisheries, biodiversity and habitat and climate and energy. In the case of EPI 2016 the construction of the index has improved relying on the same two components and 9 variables but in twenty (in most cases different) indicators. Next the index is used with some socio-economic variables in order to model its behavior. The empirical findings and the associated policy implications are discussed together with future extensions. |
| Keywords: | Environmental performance index; economic welfare. |
| JEL: | D60 Q01 Q50 Q58 |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:75561&r=env |
| By: | Lindstad, Haakon Elizabeth (Norwegian Marine Technology Research Institute (MARINTEK)); Eskeland, Gunnar S. (Dept. of Business and Management Science, Norwegian School of Economics); Rialland, Agathe (Norwegian Marine Technology Research Institute (MARINTEK)) |
| Abstract: | This paper assesses the pros and the cons of installing batteries on offshore support vessels. These vessels are specially designed to provide services to oil and gas operations, such as anchor handling, supply and subsea operations. They have multiple engines and advanced dynamic positioning systems to ensure that they can perform their duties with high reliability at nearly any sea state. Combined with high safety requirements, this has resulted in general operational patterns with vessels running multiple combustion engines even at calm water conditions. For emissions, low engine loads yield high emissions of exhaust gases such as nitrogen oxides (NOx) and aerosols such as black carbon (BC), due to less favorable combustion conditions. The high span for these vessels between low loads and high, and their great need for potential power at short notice, motivate our examination of hybrid setups with electric: the vessel segment should be more favorable than many. We find that combining batteries with combustion engines reduces local pollution and climate impact, while the economics with current battery cost and fuel prices is good enough for new vessels, but not good enough for retrofits. |
| Keywords: | Maritime transport; Marine Operations; Greenhouse gases; Abatement cost and options; Hybrid power options; Batteries |
| JEL: | L92 Q50 Q52 |
| Date: | 2016–12–07 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nhhfms:2016_021&r=env |
| By: | Billette de Villemeur, Etienne; Leroux, Justin |
| Abstract: | We observe that a Pigovian climate policy need not exact full payment of the social cost of carbon upon emission to yield optimal incentives. Following this insight, we propose the creation of a carbon liabilities market to address climate change. Each period, countries would be made liable for their share of responsibility in current climate damage. This yields first-best emissions patterns. Also, because liabilities could be traded like financial debt, it decentralizes the choice a discount rate as well as beliefs about the severity of the climate problem. From an informational standpoint, implementation relies only on realized harm and on the well-documented emission history of countries, unlike a carbon tax or tradable permits scheme, which are based on a sum of discounted expected future marginal damage. We offer a discussion of the differences between a liability scheme and a carbon tax along the dimensions of information, participation, commitment, intergenerational fairness, and exposure to risk. |
| Keywords: | Carbon Liability; Climate Policy; Market Instruments; Pigovian Tax. |
| JEL: | H23 Q54 |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:75497&r=env |
| By: | Stefano Carattini; Alessandro Tavoni |
| Abstract: | This paper analyzes the decision of “green” economists to participate in the carbon offset market, and how this decision is related with the views that these experts hold on offsets. It also compares the preferences of economists with those of the general public, as emphasized in the literature. The 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 focus on the effect of objecting to the use of offsets and discuss the implications for practitioners and policy-makers. Based on our findings, we suggest that ecological and environmental economists should be more involved in the design and use of carbon offsets. |
| JEL: | N0 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:68542&r=env |
| By: | Anders Fremstad (Economics Department, Colorado State University, Fort Collins); Anthony Underwood (Department of Economics, Dickinson College); Sammy Zahran (Economics Department, Colorado State University, Fort Collins) |
| Abstract: | Studies find that per capita carbon dioxide emissions (CO2) decrease with household size and urban density, so the demographic trends of declining household size and dense urbanization produce countervailing effects with respect to emissions. We posit that both trends operate on a common scaling mechanism realized through the sharing of carbon- intensive expenditures. With detailed data from the United States Consumer Expenditure Survey, we construct a dataset of CO2 emissions at the household level and leverage a unique measure of residential density to estimate household and urban economies. We find that dense urban areas have per capita emissions 23 percent lower than rural areas, and that adding an additional member to a household reduces per capita emissions by about 6 percent. We also show that household economies are about twice as large in rural as compared to dense urban areas. These results suggest that the carbon benefits of dense urbanization have the potential to offset the effects of declining household size. |
| Keywords: | Emissions, Urban Density, Sharing, Household Size, Energy |
| JEL: | D1 Q4 R2 R3 |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:dic:wpaper:2016-01&r=env |
| By: | Jian-Xin Wu; Ling-Yun He |
| Abstract: | This paper examines the distribution dynamics of carbon dioxide (CO2) emission intensity across 30 Chinese provinces using a weighted distribution dynamics approach. The results show that CO2 emission intensity tends to diverge during the sample period of 1995-2014. However, convergence clubs are found in the ergodic distributions of the full sample and two sub-sample periods. Divergence, polarization and stratification are the dominant characteristics in the distribution dynamics. Weightings with economic and population sizes have important impacts on current distributions and hence long run steady distributions. Neglecting economic size may under-estimate the deterioration in the long run steady state. The result also shows that conditioning on space and income cannot eliminate the multimodality in the long run distribution. However, capital intensity has important impact on the formation of convergence clubs. Our findings have contributions in the understanding of the spatial dynamic behaviours of CO2 emissions across Chinese provinces, and have important policy implications for CO2 emissions reduction in China. |
| Date: | 2016–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1612.02658&r=env |
| By: | Lazkano, Itziar (Dept. of Economics, Norwegian School of Economics and Business Administration); Pham, Linh (University of Wisconsin-Milwaukee) |
| Abstract: | We evaluate the role of a fossil fuel tax and research subsidy in directing innovation from fossil fuel toward renewable energy technologies in the electricity sector. Using a global firm-level electricity patent database from 1978 to 2011, we find that the impact of fossil fuel taxes on renewable energy innovation varies with the type of fossil fuel. Specifically, a tax on coal reduces innovation in both fossil fuel and renewable energy technologies while a tax on natural gas has no statistically significant impact on renewable energy innovation. The reason is that easily dispatchable energy sources like coal-fired power plants need to complement renewable energy Technologies in the grid because renewables generate electricity intermittently. Our results suggest that a tax on natural gas, combined with research subsidies for renewable energy, may effectively shift innovation in the electricity sector towards renewable energy. In contrast, coal taxation or a carbon tax that increases coal prices has unintended negative consequences for renewable energy innovation. |
| Keywords: | Electricity; Energy taxes; Renewable; coal; natural gas technologies |
| JEL: | L90 O30 Q40 |
| Date: | 2016–11–16 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nhheco:2016_016&r=env |
| By: | Anabela Botelho (Universidade de Aveiro, GOVCOPP); Lina Sofia Lourenço-Gomes (University of Trás-os-Montes and Alto Douro); Lígia Costa Pinto (Universidade do Minho, NIMA); Sara Sousa (Instituto Politéctnico de Coimbra, ISCAC); Marieta Valente (Universidade do Minho, NIMA) |
| Abstract: | Renewable energy sources for electricity generation are unequivocally more environmentally friendly than the traditional sources, but are not impact-free. Given the potential for solar photovoltaic energy to contribute to the energy mix in some countries, it is timely to carefully consider the potential environmental costs of operation of photovoltaic farms, which are experienced by the local population, while the general benefits accrue to all. These adverse impacts should be identified and acknowledged. This paper proposes and applies economic valuation methods to estimate the value of those environmental impacts. We apply the contingent valuation method to a sample of local residents close to three selected photovoltaic farms in Portugal. We design a discrete choice experiment to elicit the valuation of specific adverse impacts of electricity generation through photovoltaic energy by national residents. Our results show that the value elicited in the vicinity of the photovoltaic farms is non-negligible and national residents value positively and differently the different adverse local impacts. Both of these estimates, in conjunction or independently, can be used to fully account for this often neglected cost of solar energy. The asymmetric equity implications of photovoltaic projects should not be neglected when deciding their construction and location. |
| Keywords: | Photovoltaic Farms; Stated Preference Methods; Contingent Valuation; Discrete Choice Experiments; Environmental Impacts |
| JEL: | Q4 |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:nim:nimawp:64/2016&r=env |
| By: | Halkos, George; Skouloudis, Antonis |
| Abstract: | Extreme Weather Events (EWEs) pose unprecedented threats to modern societies and represent a much-debated issue strongly interlinked with current development policies. Small and medium-sized enterprises (SMEs) that constitute a driving force of economic growth, employment and total value-added remain highly vulnerable to and ill-prepared for such environmental perturbations. This study assesses barriers to SMEs’ resilience to EWEs in an attempt to shed light on enabling factors which can define effective SMEs responses to nonlinear environmental stimuli. Relying on an exploratory quantitative survey, the assessment offers essential research findings for practitioners on SME management and sets forth linkages with current mechanisms for policy interventions towards an appropriate resilience agenda for SMEs. |
| Keywords: | Extreme weather events; organizational resilience; small and medium-sized enterprises; climate change; environmental perturbations. |
| JEL: | Q01 Q50 Q54 Q56 Q59 |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:75562&r=env |
| By: | Lu-Yi Qiu; Ling-Yun He |
| Abstract: | The air pollution has become a serious challenge in China. Emissions from motor vehicles have been found as one main source of air pollution. Although the Chinese government has taken numerous policies to mitigate the harmful emissions from road transport sector, it is still uncertain for both policy makers and researchers to know to what extent the policies are effective in the short and long terms. Inspired by the concept and empirical results from current literature on energy rebound effect (ERE), we first propose a new concept of pollution rebound effect (PRE). Then, we estimate direct air PRE as a measure for the effectiveness of the policies of reducing air pollution from transport sector based on time-series data from the period 1986-2014. We find that the short-term direct air PRE is -1.4105, and the corresponding long-run PRE is -1.246. The negative results indicate that the direct air PRE does not exist in road passenger transport sector in China, either in the short term or in the long term during the period 1986-2014. This implies that the Chinese transport policies are effective in terms of harmful emissions reduction in the transport sector. This research, to the best of our knowledge, is the first attempt to quantify the effectiveness of the transport policies in the transitional China. |
| Date: | 2016–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1612.02653&r=env |
| By: | Motavasseli, Ali (Tilburg University, School of Economics and Management) |
| Abstract: | This dissertation addresses several issues regarding the consequences of environmental policy and its optimal level, as well as household's decisions on energy consumption and labor supply. In chapter two, a theoretical analysis investigates whether fossil fuel taxation or a consumption cap is sufficient for the adoption of both biofuels and solar energy. It is shown that under these policies solar adoption can crowd out biofuels consumption. Chapter three addresses the link between longevity and optimal environmental policy. It is shown that the significant rise of life expectancy in the recent decades, which is common across different countries, calls for tighter environmental policies. Chapter 4 investigates households's decisions on the utilization of energy-using appliances. Households tend to increase energy service consumptions, like driving or indoor lighting, once they adopt a more efficient appliance, like fuel-efficient cars and LED light bulbs. This increase in the utilization of appliances is called the rebound effect. According to empirical evidence, the rebound effect declines with households' income. The chapter investigates why households with lower income tend to have larger rebound effects. Chapter 5 investigates differences in households decisions from a different perspective. Here, the labor supply decisions of households in urban and rural areas is analyzed in a historical background. Different patterns of the labor supply of rural and urban households is explained based on the changes in market productivities and non-market opportunities. |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiutis:b32e287e-169b-4e89-9878-1817e188b356&r=env |
| By: | Gunnar Gutsche (University of Kassel); Andreas Ziegler (University of Kassel) |
| Abstract: | This paper examines the willingness of private financial decision makers to pay for socially responsible investments (SRI). Our empirical analysis is based on unique data from a representative computer-based survey in Germany that especially comprised two stated choice experiments. The experiments referred to choices among several equity funds and among several three-year fixed-interest investment products and especially comprised sustainability criteria and financial performance indicators as main attributes. Our econometric analysis with mixed logit models reveals strong stated preferences and thus a considerable willingness to pay for sustainable investments. For example, the estimated mean willingness to sacrifice yearly nominal interest rates for sustainable fixed-interest investment products amounts to 0.21 percentage points among a variation between 1.30% and 2.10%. These results are very stable across several robustness checks that also include different techniques to mitigate possible hypothetical biases. Our latent class logit model analysis confirms a high extent of unobserved heterogeneity between different investor groups and especially reveals that specific social values and norms play an important role. Investor groups with strong considerations of norms by the social environment with respect to SRI and especially with high feelings of warm glow from SRI, a strong environmental awareness, and an affinity to left-wing parties have a substantially higher estimated mean willingness to pay for sustainable investments. |
| Keywords: | Socially responsible investments; stated choice experiments; mixed logit models; latent class logit models; willingness to pay; social values and norms |
| JEL: | G11 Q56 M14 G02 A13 C25 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201640&r=env |
| By: | Kvamsdal, Sturla F. (SNF – Centre for Applied Research); Maroto, José M. (Dept. of Statistics and Operations Research II, Complutense University of Madrid); Morán, Manuel (Dept. of Foundation of Economic Analysis I, Complutense University of Madrid); Sandal, Leif K. (Dept. of Business and Management Science, Norwegian School of Economics) |
| Abstract: | We develop a discretization method for continuous-time bioeconomic models. Based on this method, we develop a discrete-time bioeconomic model to analyze seasonality in fisheries. The discretization method consists of three steps: first, we estimate a proper growth function for the continuous-time model with the ensemble Kalman Filter. Second, we use the Runge-Kutta method to discretize the growth function. Third, we use the Bellman approach to analyze optimal management of seasonal fisheries in a discrete-time setting. We analyze both the case of quarterly harvest and the case of monthly harvest, and we compare these cases with the case of annual harvest. We find that seasonal harvesting is a win-win optimal solution with higher harvest, higher optimal steady state equilibrium, and higher economic value than obtained in the case of annual harvesting. We also demonstrate that the discretization method overcomes the errors and preserves the strengths of both continuous and discrete-time bioeconomic models. |
| Keywords: | OR in natural resources; bioeconomic modeling; seasonal fisheries; discrete-time optimization |
| JEL: | C44 C61 Q22 Q57 |
| Date: | 2016–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nhhfms:2016_020&r=env |
| By: | Gerlagh, Reyer (Tilburg University, School of Economics and Management); Van Den Bijgaart, Inge (Tilburg University, School of Economics and Management); Nijland, Hans; Michielsen, Thomas (Tilburg University, School of Economics and Management) |
| Abstract: | To what extent have national fiscal policies contributed to the decarbonisation of newly sold passenger cars? We construct a simple model that generates predictions regarding the effect of fiscal policies on average CO2 emissions of new cars, and then test the model empirically. Our empirical strategy combines a diverse series of data. First, we use a large database of vehicle-specific taxes in 15 EU countries over 2001–2010 to construct a measure for the vehicle registration and annual road tax levels, and separately, for the CO2 sensitivity of these taxes. We find that for many countries the fiscal policies have become more sensitive to CO2 emissions of new cars. We then use these constructed measures to estimate the effect of fiscal policies on the CO2 emissions of the new car fleet. The increased CO2-sensitivity of registration taxes have reduced the CO2 emission intensity of the average new car by 1.3 %, partly through an induced increase of the share of diesel-fuelled cars by 6.5 percentage points. Higher fuel taxes lead to the purchase of more fuel efficient cars, but higher diesel fuel taxes also decrease the share of (more fuel efficient) diesel cars; higher annual road taxes have no or an adverse effect. |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiutis:1d2ea483-9adf-4875-9df0-1113bd1f2366&r=env |
| By: | Kanbur, Ravi |
| Abstract: | Climate justice requires sharing the burdens and benefits of climate change and its resolution equitably and fairly. It brings together justice between generations and justice within generations. In particular it requires that attempts to address injustice between generations through curbing greenhouse gas emissions do not end up creating injustice in our time by hurting the presently poor and vulnerable. This essay considers the transformative power of education in its many dimensions as one entry point into expanding the scope of policy instruments for climate justice. First, education can change behavior, primarily in rich countries but also in poor countries, and thus help mitigate climate injustice between the generations. Second, resources targeted to the education of the poorest in poor countries can help their development but also help to counter some of the negative spillover effects of interventions to mitigate climate change. Hence the title of this essay — Education for Climate Justice. |
| Keywords: | Environmental Economics and Policy, Teaching/Communication/Extension/Profession, |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:cudawp:250015&r=env |
| By: | Wisdom Akpalu; Ametefee K. Normanyo |
| Abstract: | To attract greater levels of foreign direct investment into their gold mining sectors, many mineral-rich countries in sub-Saharan Africa have been willing to overlook serious instances of mining company non-compliance with environmental standards. These lapses in regulatory oversight and enforcement have led to high levels of pollution in many mining communities. The likelihood is high that the risk of pollution-related sicknesses, such as skin infections, upper and lower respiratory disorders, and cardiovascular diseases, will necessitate increasingly high healthcare expenditures in affected communities. In this study, we propose and estimate a hedonic-type model that relates healthcare expenditure to the degree of residents’ exposure to mining pollution using data obtained on gold mining in Ghana. The empirical results confirm that, after controlling for factors such as current and long-term health status, increased mining pollution leads to higher healthcare expenditure. |
| Keywords: | mining pollution, healthcare expenditure, hedonic analysis, Ghana |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2016-121&r=env |
| By: | Sayed, Iftekhar; John, Tisdell |
| Abstract: | Conservation covenants are a policy tool for biodiversity and environmental conservation on private lands. They are associated with the withdrawal of development rights by the landholder over a particular piece of land in exchange for financial benefits. Previous studies suggest that existing network structure could influence an individual’s decision to enrol in conservation programs, but there is a lack of comparative analysis of network types to promote more cost-effective results. In this paper, we develop an agent based simulation model to demonstrate the evolution and impact of future land use restrictions on the enrolment of landholders in conservation covenant programs under different network structure. We observe that the nature of the network has a significant impact on program performance. We obtain a lower response to (and higher cost of) conservation covenanting programs when agents are part of a random matching network compared to other networks options. On the other hand, program costs are lower when agents are part of a local uniform matching network. The outcomes indicate that it might be beneficial for the representations to conduct network analysis the project planning stage to fix their programs more attractive to the landowners. |
| Keywords: | Conservation covenants, Land use restrictions, Multi-agent systems, Simulation, Network analysis, Environmental Economics and Policy, Q24, Q28, D47, |
| Date: | 2016–12–11 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uwauwp:250161&r=env |
| By: | Partha Dasgupta; Tapan Mitra; Gerhard Sorger |
| Abstract: | We study a socio-ecological model in which a continuum of consumers harvest a common property renewable natural resource. Markov perfect Nash equilibria of the cor- responding non-cooperative game are derived and are compared with collectively optimal harvesting policies. The underlying mechanisms that drive open-access commons in our model are shaped by population size, harvesting costs, and the ecosystem's productivity. If other things equal population is small relative to harvesting costs, unmanaged commons do not face destruction. More strikingly, they are harvested at the collectively optimal rate. Property rights do not matter in that parametric regime because the resource has no social scarcity value. However, if other things equal population is large relative to harvesting costs, open-access renewable natural resources suffer from the tragedy of the commons. Property rights matter there because the resource has a social scarcity price. The pop- ulation size relative to harvesting costs at which the socio-ecological system bifurcates is an increasing function of the ecosystem's productivity. A sudden crash in productivity, population overshoot, or decline in harvesting costs can tip an unmanaged common into ruin. The model provides a way to interpret historical and archaeological ndings on the collapse of those societies that have been studied by scholars. |
| JEL: | D01 C73 Q20 |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:vie:viennp:1608&r=env |
| By: | Frans Lammersen; William Hynes |
| Abstract: | The 2030 Agenda for Sustainable Development with the Sustainable Development Goals at its core calls to “(…) increase aid-for-trade support for developing countries, in particular least developed countries.” This call echoes a similar appeal in the Addis Ababa Action Agenda of the Third International Conference on Financing for Development. In response, the OECD Action Plan on the Sustainable Development Goals: Better Policies for 2030 also argues for further promoting aid for trade and ensuring that it supports the achievement of the Sustainable Development Goals. This paper discusses how aid for trade can contribute to these goals. It argues that the Aid-for-Trade Initiative already takes an integrated and multi-dimensional approach to promoting trade, economic growth and poverty reduction. Aid-for-trade programmes are critical to turn trade opportunities into trade flows, but more is needed to make trade an engine for green growth and poverty reduction for both men and women. International companies are already increasing their financial and technical contribution to building trade-related capacities in developing countries. Strengthening private sector engagement further could be achieved by expanding platforms for project-based collaboration that create multi-stakeholder value. Such approaches will better facilitate trade for development and strengthen the contribution of aid for trade to the 2030 Sustainable Development Agenda. |
| Date: | 2016–12–13 |
| URL: | http://d.repec.org/n?u=RePEc:oec:dcdaab:5-en&r=env |
| By: | Laurent Denant-Boèmont (University of Rennes1 - CREM UMR CNRS 6211, France); Carl Gaigné (INRA, UMR1302 SMART, France and University of LAVAL, CREATE, Québec, Canada); Romain Gaté (University of Rennes1 - CREM UMR CNRS 6211, France and INRA, UMR1302 SMART, France) |
| Abstract: | In this paper, we study the effects of urban design on pollution and welfare. We build a theoretical model of residential choices with pollution externalities arising from commuting, where the size of the central business district (CBD) and the demand for housing are endogenous. We show that a polycentric city is desirable from welfare and ecological perspective, provided that travel speed and/or the number of roads directly connected with the CBD are sufficiently high. The spatial extension of cities remains the critical variable to curb transport-related urban pollution. |
| Keywords: | Urban form; Housing; Travel speed; Carbon emissions; Welfare |
| JEL: | Q53 R14 R21 |
| Date: | 2016–10 |
| URL: | http://d.repec.org/n?u=RePEc:tut:cremwp:2016-18&r=env |
| By: | Ortiz-Bobea, Ariel |
| Abstract: | I propose a strategy of measuring the long-run economic impact of climate change on farmland values that tackles the elusive problem of time-invariant spatially-dependent unobservables in the hedonic approach. The strategy exploits that a county’s agricultural productivity is primarily influenced by its own climate, and the fact that climate assignment appears random conditional on average county-neighborhood characteristics. Results suggest that large impacts of climate change on US agriculture seem unlikely. Findings are robust to multiple checks and cannot be attributed to measurement error. Ignoring such confounders considerably overstates long-run climate change impacts on the sector. |
| Keywords: | Environmental Economics and Policy, Land Economics/Use, Q15, Q51, Q54, R21, |
| Date: | 2016–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:cudawp:250035&r=env |
| By: | Azam, Sardor |
| Abstract: | This study tests the suitability of spatial effects in trade context. The paper analyzes the effect of the strictness of environmental regulations on trade performance on the basis of augmented gravity model. It compares spatial estimates with those of OLS and concludes that spatial effects are important. The results indicate that Spatial Error Model fits best to the data at hand. It is shown that environmental standards are positively correlated with trade. |
| Keywords: | Exports, Augmented gravity model, Environmental Performance Index, Spatial econometrics, Multilateral resistance |
| JEL: | C31 F18 Q56 |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:73113&r=env |
| By: | Enahoro, D.; Schmit, T.M.; Boisvert, R.N. |
| Abstract: | In this paper, we apply mathematical programming methods to account explicitly for restrictions on land application of nutrients from large dairy operations in New York and to analyze the effects on measured outcomes of farm management adjustments to the nutrient policy and to recent changes in relevant agricultural prices. Based on a set of unique data, we assess the effects of new regulations for nutrient management by confined animal feeding operations (CAFOs) on farm income, land use, manure and fertilizer management, and environmental quality for an important dairy production region in New York. Our mathematical methods also allow us to make distinctions between the value of land for production and as a manure disposal site so that we can assess the differential effects of the land nutrient application standards on the economic value of land. The results indicate that adjustments to dairy rations in response to the current high prices of traditional feed ingredients lead to increased nitrogen and phosphorus content in dairy waste. In addition, crop nutrient applications from manure far exceed the critical uptake levels for optimum yield and increase the risks of nutrient loading to the environment. In a related paper, we demonstrate that while the CAFO regulations correct for this problem, the reductions in the risks of nutrient loadings could be accompanied by losses to farm income. Our current application to an important dairy production region in Western New York further buttresses this point. We also demonstrate that farm net revenue is sensitive to the availability of nearby land suitable for manure disposal. Since the new nutrient restrictions require that about half of the manure produced on the dairy farms in the region be transported off-site for disposal, crops with higher potential to absorb field nutrients are more attractive than would otherwise be the case. The shadow prices for CAFO land with low soil phosphorus increase, reflecting not only the value of land for crop production but also its value as a site for manure disposal. These shadow prices reflect what the CAFOs could pay for additional land, and this price falls as the distance to the CAFO increases. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:cudawp:250026&r=env |
| By: | Ann Wolverton; Charles Griffiths; William Wheeler |
| Abstract: | In this paper we evaluate whether Ohio’s Tox-Minus Initiative had a discernible effect on participants’ emission reductions relative to non-participants. We expect this to be the case if there are private benefits of program participation that outweigh its costs. To investigate whether the Tox-Minus Initiative resulted in greater reductions in TRI-reported air emissions from the top 100 emitters, we use a triple difference approach to compare emissions before and after the program. This is done using both the simple difference in emissions between 2003 and 2012 and a fixed-effects, panel regression. To form an appropriate comparison for participants, we use propensity score matching estimation techniques based on pre-participation attributes. Our results suggest that being invited to the program, regardless of whether a facility joined the Tox-Minus Initiative, produced a significant decline in the absolute level of air emissions. Degree of regulatory attention also appears important, though we find that participants reduced emissions subject to the Clean Air Act by significantly more than non-participants in the post policy period. |
| Keywords: | voluntary programs, toxic releases, air emissions, program effectiveness |
| JEL: | Q53 Q58 |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:nev:wpaper:wp201605&r=env |
| By: | María Aguilera Díaz |
| Abstract: | La serranía del Perijá está ubicada al norte de Colombia y comparte frontera con Venezuela. Es un territorio de importancia biológica para el país y la humanidad por los servicios ambientales. Además, tiene resguardos que favorecen a los indígenas yuko-yupkas y los baris, etnias que están casi extinguidas. La economía se base en el sector primario, una parte agropecuaria y otra minera. En la primera se destacan los cultivos permanentes de palma de aceite, café, cacao y la ganadería bovina extensiva, y en la segunda la extracción de carbón que provee regalías y paga impuestos, pero contamina las fuentes hídricas, el suelo y el aire. La población rural, la cual padece altos índices de pobreza, ha sido la principal afectada por el conflicto armado en la región. ******ABSTRACT: Serranía del Perija is located at north of Colombia and shares a border with Venezuela. It is a territory with biological importance for the country and humanity because of the environmental services. Furthermore, this place has safeguards that favor indigenous yuko-yupkas and baris, ethnic groups that are almost extinct. The economy is based on the primary sector, agriculture and mining. In the first sector, stands out the permanent crops of palm oil, coffee, cocoa and extensive cattle; in the second one, the coal extraction that provides royalties and pay taxes, but it pollutes water sources, soil and air. The rural population, which suffers high rates of poverty, has been the main affected by the armed conflict in the region. |
| Keywords: | Serranía del Perijá, Caribe colombiano, resguardos indígenas, agricultura, ganadería, minería. |
| JEL: | Q15 Q30 R11 |
| Date: | 2016–12–12 |
| URL: | http://d.repec.org/n?u=RePEc:col:000102:015244&r=env |
| By: | Durrmeyer, Isis; Samano, Mario |
| Abstract: | We compare the welfare effects in equilibrium of two environmental regulations that aim at increasing the new cars fleet’s average fuel efficiency: the fuel economy standards and the feebate policies. Maintaining the same environmental benefit and tax revenue, we simulate the implementation of each policy in France and the United States. Standard-type policies have larger negative welfare effects, up to 3.2 times those from the feebate. Effects on manufacturers are heterogeneous: some are better of under the standard regulation. The addition of a market to trade levels of fuel efficiency dominates the simple standard regulation but not always the feebate. We also consider the attribute-based standard, technological improvements, and the equivalence with fuel taxes as extensions. |
| Keywords: | Environmental regulation, automobile market, structural model, policy simulations |
| JEL: | C51 L50 Q51 |
| Date: | 2016–11 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:31175&r=env |
| By: | Zoeteman, Bastiaan (Tilburg University, School of Economics and Management) |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiutis:7b9470aa-4e3f-4fb3-bfb3-0700a1cc2a2c&r=env |
| By: | Bailey, Roy E; Hatton, Timothy J.; Inwood, Kris |
| Abstract: | Atmospheric pollution was an important side effect of coal-fired industrialisation in the nineteenth century. In Britain emissions of black smoke were on the order of fifty times as high as they were a century later. In this paper we examine the effects of these emissions on child development by analysing the heights on enlistment during the First World War of men born in England and Wales in the 1890s. We use the occupational structure to measure the coal intensity of the districts in which these men were observed as children in the 1901 census. We find strong negative effects of coal intensity on height, which amounts to a difference of almost an inch between the most and least polluted localities. These results are robust to a variety of specification tests and they are consistent with the notion that the key channel of influence on height was via respiratory infection. The subsequent reduction of emissions from coal combustion is one factor contributing to the improvement in health (and the increase in height) during the twentieth century. |
| Keywords: | atmospheric pollution; health and height |
| JEL: | I15 N13 Q53 |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:11702&r=env |
| By: | Berthomé, Guy-El-Karim; Thomas, Alban |
| Abstract: | The efficiency of participatory schemes in environmental planning is an emerging research area, and many issues are not solved yet regarding the assessment of such procedures. It is essential for decision makers to identify improvement opportunities of participatory schemes. We propose an original procedure to address such issue, through a bargaining model from the signaling game literature, which accounts for participation design as well as for agents' preferences, beliefs and bargaining power. The model is calibrated using qualitative data from surveys in French local communities involved in municipal solid waste management. Model simulations are used to test for assumptions on the stakeholder dialogue and explore sensitivity of game outcomes to structural parameters. We propose a set of performance indicators to identify the most effective participatory schemes in achieving convergence in stakeholder positions regarding environmental and land-use planning. |
| Keywords: | Cheap talk; Facility sitting; Public participation; Collaborative negotiation; Waste management; Nimby; Simulation model |
| Date: | 2016–11 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:31158&r=env |
| By: | Alan Hernández Solano (El Colegio de Mexico); Antonio Yunez Naude (El Colegio de Mexico) |
| Abstract: | En este artículo se reportan los resultados de un modelo de equilibrio general aplicado y microeconómico (MEGAM) para estimar los efectos del cambio climático (CC) sobre la economía de las cinco regiones rurales de México. El modelo se aplica por región y se caracteriza por la desagregación de los hogares en cinco categorías, principalmente a partir de la tenencia de la tierra. Los hogares se modelan como productores y consumidores y se considera la falla de mercados que explica que algunos hogares produzcan alimentos para la subsistencia familiar. Las simulaciones se hacen a partir de los impactos directos estimados en la literatura del CC sobre la productividad del maíz. Los resultados muestran que los efectos económicos del CC serán heterogéneos por región y grupo de hogar. La zona más afectada será la Sur-sureste donde los ingresos reales de los hogares se reducirán en 8%, siguiéndole la Centro-occidente (5.5%) y Noroeste (3.9%), mientras que en el Centro y Noreste éstos aumentarán en 5.8% y 1.3%, respectivamente. Además, el CC pondrá presiones adicionales al presupuesto federal y a la seguridad alimentaria: se necesitarán 3.221 mil millones de pesos para restaurar el bienestar de los hogares y el excedente del maíz producido se reducirá en 31%. |
| Keywords: | agriculture, income distribution, global warming |
| JEL: | O13 O15 Q54 |
| Date: | 2016–08 |
| URL: | http://d.repec.org/n?u=RePEc:emx:ceedoc:2016-06&r=env |
| By: | Nagesh Kumar (United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) South and South-West Asia Office); Matthew Hammill (United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) South and South-West Asia Office); Selim Raihan; Swayamsiddha Panda (United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) South and South-West Asia Office) |
| Abstract: | This paper analyzes the major challenges to achieving sustainable development in South Asia as a basis for articulating development strategies for the achievement of the Sustainable Development Goals (SDGs) in the subregion. It identifies key combinations of dimensions of the 2030 Agenda and SDGs that could form core development priorities and maximize interactions for the achievement of the SDGs. The paper further analyzes the policy impacts from select development priorities within a computable general equilibrium framework on economic growth, poverty reduction and employment, among other parameters of development. The results suggest that an industry-oriented structural transformation, enhancing agricultural productivity through sustainable agriculture and overall efficiency improvements through innovations have the potential to lift an additional 71 million people out of poverty, create 56 million additional jobs in South Asia and boost GDP by 15-30 per cent by 2030 over and above the business-as-usual scenario. |
| Keywords: | South Asia, Sustainable Development Goals (SDGs), Industrialization, Agricultural productivity, Economic growth, Computable General Equilibrium Models |
| JEL: | C68 O1 O2 O5 |
| Date: | 2016–08 |
| URL: | http://d.repec.org/n?u=RePEc:eap:sswadp:dp1601&r=env |
| By: | Atallah, Shady S.; Gomez, Miguel I.; Conrad, Jon M. |
| Abstract: | We propose a novel, distance- and density-dependent specification of externalities that captures spatial dynamics within and between neighboring land parcels. We apply the problem to the short- and long-distance diffusion and control of an infectious disease in two privately-owned and ecologically-connected vineyards. Using computational experiments to generate individual and aggregate payoffs, we show how strategic behavior affects diffusion of the disease and the expected present value of the resulting externality. Our results suggest that ignoring the withinparcel spatial dynamics in the model overestimates the social cost of an externality compared to a model that focuses on inter-parcel spatial dynamics only. We find a U-shaped relationship between manager heterogeneity and aggregate payoffs in the presence of an externality, suggesting both positive and negative impacts of increased heterogeneity on strategic behavior and welfare. |
| Keywords: | Bioeconomic models, Computational methods, Disease control, Grapevine Leafroll Disease, Noncooperative games, Spatial-dynamic externalities, Crop Production/Industries, Research and Development/Tech Change/Emerging Technologies, |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:cudawp:250023&r=env |
| By: | Volpato, Guillermo |
| Abstract: | El humedal de la Bahía de Samborombón, es el humedal marino costero más extenso de la República Argentina (243.965 ha), ubicado en el noreste de la provincia de Buenos Aires, fue declarado sitio Ramsar el 24 de enero de 1997. En el humedal de Bahía de Samborombón y en sus inmediaciones se registran actividades que generan problemas que afectarían la integridad de sus ecosistemas peligrando su estado actual y futuro. El objetivo del trabajo es analizar la consolidación del humedal con la Tabla de Puntuación ("Scorecard") para la Consolidación de Sitios, utilizada en el Programa Parques en Peligro. Esta herramienta agrupa 16 criterios que juntos permiten medir la funcionalidad de un área protegida y ayudan a medir el nivel de consolidación de un área. |
| Keywords: | Areas Protegidas; Humedales; Evaluación; Bahía de Samborombón; |
| Date: | 2016–10 |
| URL: | http://d.repec.org/n?u=RePEc:nmp:nuland:2555&r=env |