nep-env New Economics Papers
on Environmental Economics
Issue of 2019‒03‒04
38 papers chosen by
Francisco S. Ramos
Universidade Federal de Pernambuco

  1. Prices vs. percentages: Use of tradable green certificates as an instrument of greenhouse gas mitigation By Heimvik, Arild; Amundsen, Eirik S.
  2. Decomposition analysis of air pollution abatement in China: Empirical study for ten industrial sectors from 1998 to 2009 By Fujii, Hidemichi; Managi, Shunsuke; Kaneko, Shinji
  3. Can reducing carbon emissions improve economic performance? Evidence from China By Yang, Fei; Shi, Beibei; Xu, Ming; Feng, Chen
  4. Specialisation, diversification and the ladder of green technology development By François Perruchas; Davide Consoli; Nicolò Barbieri
  5. Agricultural Drought Impacts on Crops Sector and Adaptation Options in Mali: a Macroeconomic Computable General Equilibrium Analysis By Jean-Marc MONTAUD
  6. The Moderating Effect of Fuel Prices On the Market Value of Fuel Efficiency, Driving Intensity, and Co2 Emissions By Klapper, Daniel; Pleshcheva, Vlada
  7. Environmental Policy on the Back of an Envelope: A Cobb-Douglas Model is Not Just a Teaching Tool By Don Fullerton; Chi L. Ta
  8. Demand Shocks Change the Excess Burden From Carbon Taxes By Schaufele, Brandon
  9. Structural design of a hierarchical urban transit network integrating modal choice and environmental impacts By Fabien Leurent; Sheng Li; Hugo Badia
  10. Environmental Efficiency and Regional Convergence Clusters in Japan: A Nonparametric Density Approach By Mendez-Guerra, Carlos
  11. Natural resources volatility and economic growth: evidence from the resource-rich region By Hayat, Arshad; Tahir, Muhammad
  12. Farmers' perception on climate change and factor influencing adaptation in Chitwan, Nepal By Regmi, Hari P
  13. Climate Change and Agriculture: Subsistence Farmers' Response to Extreme Heat By Fernando M. Arag\'on; Francisco Oteiza; Juan Pablo Rud
  14. The Reformed EU ETS - Intertemporal Emission Trading with Restricted Banking By Bocklet, Johanna; Hintermayer, Martin; Schmidt, Lukas; Wildgrube, Theresa
  15. Tracking the Sustainable Development Goals: Emerging Measurement Challenges and Further Reflections By Dang, Hai-Anh H.; Fu, Haishan; Serajuddin, Umar
  16. An account of Nepal disasters and economic fallout By Sujan Adhikari; Dileep Adhikary
  17. Trade-offs Among Increasing Farm Net Returns and Reducing Emissions of Nitrogen, Phosphorus, Greenhouse Gas Equivalents, and Ammonia In A Dairy Farm By Ebadi, Nasim; Bosch, Darrell; White, Robin
  18. Potential Use of the Life Satisfaction Approach to Value Nonmarket Goods and Services By Fernandez, Cheryl Joy; Raitzer, David; Ginting , Edimon
  19. Farmer choice of strategies alleviating food insecurity due to changing weather patterns By Sonko, Ebrima; Florkowski, Wojciech; Agodzo, Sampson; Antiwe-Agyei, Phillip
  20. The Pollution Release and Transfer Register System in the U.S. and Japan: An Analysis of Productivity By Fujii, Hidemichi; Managi, Shunsuke; Kawahara, Hiromitsu
  21. Agricultural irrigation of vine crops from desalinated and brackish groundwater under an economic perspective. A case study in Siġġiewi, Malta By Aparicio, Jesus; Tenza-Abril, Antonio; Borg, Malcolm; Galea, John; Candela, Lucila
  22. Highlights of soil and water conservation investments in four regions of Ethiopia By Adimassu, Zenebe; Langan, Simon; Barron, Jennie
  23. Technology heterogeneity in European industries' energy efficiency performance. The role of climate, greenhouse gases, path dependence and energy mix. By Kounetas, Konstantinos; Stergiou, Eirini
  24. Green Acres: A Study on the Determinants of Cropland Values in Mississippi By Gregory, Evan James; Li, Xiaofei
  25. Disaster Risk Management: Building the ‘Disaster Risk Assessment Tool’ for Italy By Giovanni Marin; Marco Modica; Susanna Paleari; Roberto Zoboli
  26. Regional differences in willingness to pay for organic vegetables in Vietnam By Thanh Mai Ha; Shamim Shakur; Kim Hang Pham Do
  27. Does Crop Insurance Inhibit Climate-Change Irrigation-Technology Adaption? By Sellars, Sarah C.; Thompson, Nathanael M.; Wetzstein, Michael E.; Bowling, Laura C.; Cherkauer, Keith A.; Frankenberger, Jane R.; Prokopy, Linda S.
  28. Productivity Decomposition with Parametric and Nonparametric Frontiers: Application to Wisconsin Dairy Production By Minegishi, Kota; Jette-Nantel, Simon
  29. An assessment of the business environment for waste-to-energy enterprises and how it affects women entrepreneurs in Kenya By Gebrezgabher, Solomie; Taron, A.; Odero, J.; Njenga, M.
  30. Udder Efficiency: A Panel Stochastic Efficiency Model of the Relationship Between Somatic Cell Count and Dairy Farming Practices By Swartz, Alexander Ogden; Saghaian, Sayed; Mark, Tyler
  31. Producers' Willingness to Provide Crop Residue for Bioenergy Production By Salifu, Abdul Wahab; Gedikoglu, Haluk; Parcell, Joseph
  32. Expansion of GLADIS for Modeling Next Generation Bioproduct and Bioenergy Market Logistics By Calderon Ambelis, Heydi; Buser, Michael; Holcomb, Rodney; Craige, Collin; Buser, Guy
  33. Economic Development and Biodiversity By van Goethem, Thomas; Van Zanden, Jan Luiten
  34. Analysis of Economic Opportunity of Retaining Ownership of Cow-Calf Operations under Three Production Systems: Grazing Experiments in Southeastern U.S. By Akande, Emmanuel Omotayo; Adams, Damian; Stefanou, Spiro
  35. Costs of Nitrogen Loading Reductions by Macro-farm Targeting Methods By Xu, Yuelu; Bosch, Darrell
  36. Natural resources, economic growth and geography By González-Val, Rafael; Pueyo, Fernando
  37. The Effect of Pollution and Heat on High Skill Public Sector Worker Productivity in China By Matthew E. Kahn; Pei Li
  38. Glyphosate Use in Agriculture and Birth Outcomes of Surrounding Populations By Dias, Mateus; Rocha, Rudi; Soares, Rodrigo R.

  1. By: Heimvik, Arild (University of Bergen, Department of Economics); Amundsen, Eirik S. (University of Bergen, Department of Economics)
    Abstract: The paper analyzes the problem of achieving a target path of emission reductions in the electricity sector, using a scheme of tradable green certificates (TGC). There are two types of generation, renewable and fossil. The latter causes the emissions. The paper also examines effects from emission regulation on construction of new renewable generation capacity. Outcomes are compared with an emission fee and a subsidy. The analytical results are simulated with a numerical model and social surplus are calculated for the different instruments. Two versions of the percentage requirement are devised for the TGC scheme. Results show that the target path of emission reductions is achievable, but incentives for new renewable generation capacity will be sub-optimal, regardless of the version of the percentage requirement. The TGC scheme is neither the most accurate nor the most cost-efficient, instrument but it does lead to a smaller reduction of social surplus than a subsidy.
    Keywords: Emission regulation; energy policy; green certificates; Pigouvian taxes; subsidies
    JEL: C70 Q24 Q42 Q48
    Date: 2019–02–14
    URL: http://d.repec.org/n?u=RePEc:hhs:bergec:2019_001&r=all
  2. By: Fujii, Hidemichi; Managi, Shunsuke; Kaneko, Shinji
    Abstract: This study analyzes air pollutant substances management in Chinese industrial sectors from 1998 to 2009. Decomposition analysis applying the logarithmic mean divisia index is used to analyze changes in air pollutant substances emissions by the following five factors: coal pollution intensity (CPI), end-of-pipe treatment (EOP), energy mix (EM), productive efficiency change (EFF), and production scale changes (PSC). We focus on the three pollutants which are sulfur dioxide (SO2), dust substance, and soot substance. We clarify SO2 emissions from Chinese industrial sectors have increased because of the increase in the production scale. However, the inducing EOP equipment and improvements in energy efficiency have prevented an increase in SO2 emissions commensurate with the production increasing. Second, soot emissions were successfully reduced and controlled in all industries except the steel industry between 1998 and 2009, even though the production scale expanded for these industries. This reduction is achieved because of improvements in the EOP equipment technology and in energy efficiency. Finally, dust emissions decreased by nearly 65% between 1998 and 2009 in the Chinese industrial sectors. This successful emissions reduction was achieved by implementing EOP and pollution prevention activities during the production processes, especially in the cement industry. We clarify that pollution prevention effect in cement industry is mainly caused by production technological development rather than scale merit.
    Keywords: Sustainable industrial production; Pollution prevention; End-of-pipe; Air pollution; Scale merit; China
    JEL: Q01 Q53 Q56
    Date: 2019
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:92234&r=all
  3. By: Yang, Fei; Shi, Beibei; Xu, Ming; Feng, Chen
    Abstract: As the problem of carbon emissions is becoming increasingly more serious around the world, how to balance carbon emissions reduction and economic growth has become an important issue in the field of ecological economics. China is the world's largest carbon dioxide emitter, and China's Low-Carbon Pilot (CLCP) policy has significantly reduced carbon dioxide emissions and achieved expected benefits. However, is environmental quality improving at the expense of economic growth? Based on panel data from 286 Chinese prefecture-level cities and from Chinese micro-industrial enterprises from 2001 to 2013, this article focuses on the causal effect of environmental policy on regional economic growth and the benefits and changes in the behavior of enterprises through a quasi-natural experiment and the difference-in-differences (DID) method. The results are as follows. First, the CLCP policy significantly promotes regional economic growth. Moreover, as the implementation time of the policy continues, environmental regulation has a greater effect of promoting economic growth. Second, although the CLCP policy significantly increases various production costs, it also promotes the growth of enterprises' output and benefits. Third, under the pressure of the significant increase in enterprise cost caused by environmental regulation, enterprises choose the positive way of strengthening internal management, improving efficiency and increasing innovation instead of choosing the negative way of trans-regional transfer to exit the market; accordingly, enterprises finally achieve an improvement in output and benefits.
    Keywords: CLCP policy,economic growth,behavior of enterprise,DID
    JEL: O12 O13 Q38
    Date: 2019
    URL: http://d.repec.org/n?u=RePEc:zbw:ifwedp:201913&r=all
  4. By: François Perruchas (INGENIO [CSIC-Universitat Politecnica de Valencia], Spain); Davide Consoli (INGENIO [CSIC-Universitat Politecnica de Valencia], Spain); Nicolò Barbieri (University of Ferrara, Italy)
    Abstract: This paper elaborates an empirical analysis of the temporal and geographical distribution of green technology, and on how specific country characteristics enable or thwart environmental inventive activities. Using patent data on 63 countries over the period 1970-2012 we identify key drivers of cross-country diversification and specialization. Our first finding is that countries diversify towards green technologies that are related to their existing competences. Notably, the maturity of the green technology matters more than the level of development of each country. The second main result is that countries move along cumulative paths of specialization, and towards more complex green technologies. Interestingly, the complexity of green technologies is not an obstacle to further specialisation. The latter holds also for developing countries that are most exposed to climate change hazards.
    Keywords: Environmental Technology; Technological diversification; Technological specialisation
    JEL: O14 O33 Q55
    Date: 2019–02
    URL: http://d.repec.org/n?u=RePEc:sru:ssewps:2019-07&r=all
  5. By: Jean-Marc MONTAUD
    Abstract: In Mali’s current context where the crops sector is particularly exposed and vulnerable to agricultural drought, this study assesses the economy-wide impacts of such events and the potential effectiveness of some adaptation strategies. Using a dynamic computable general equilibrium model, we conduct counterfactual simulations of various scenarios accounting for different levels of intensity and frequency of droughts over a 15-year period. We first show how mild, moderate, and intense droughts currently experienced by the country affect its economic performances and considerably degrade its households’ welfare. We also show how these negative impacts could be aggravated in the future by the likely increased number of intense droughts threatened by global climate change. However, we finally show that there appears to be some room for Mali to manoeuvre in terms of drought-risk management policies, such as fostering the use of drought-tolerant crop varieties, improving drought early warning systems or extending irrigation capacities.
    Keywords: Climate variability, General Equilibrium, Agriculture, Food Security, Mali
    JEL: C68 O13 Q54
    Date: 2019–02
    URL: http://d.repec.org/n?u=RePEc:tac:wpaper:2018-2019_5&r=all
  6. By: Klapper, Daniel (Institute for Marketing Humboldt-University Berlin); Pleshcheva, Vlada (Institute for Marketing Humboldt-University Berlin)
    Abstract: In the current paper, we quantify the effect that fuel prices have on vehicle prices\' responsiveness to fuel economy. We apply a hedonic price model to the German automobile market by using data on detailed technical specifications of high-sales vehicles of three sequential model years. In the contribution to previous research, our specification enables us to distinguish between consumers\' valuation of fuel economy versus their reaction to changes in fuel prices. Two sources of changes in consumers\' willingness-to-pay for better fuel economy are discussed - changes in the budget for driving a car and changes in capital investments in better car quality. We also discuss the subsequent changes in the optimal driving intensity and the resulting carbon dioxide emissions. Differences in the effects are studied for various car makes of both diesel and gasoline engines.
    Keywords: co2 emissions; fuel economy; fuel prices; hedonic regression;
    JEL: D12 L62 Q41 Q51
    Date: 2019–02–23
    URL: http://d.repec.org/n?u=RePEc:rco:dpaper:141&r=all
  7. By: Don Fullerton; Chi L. Ta
    Abstract: To clarify and interpret the workings of a large computable general equilibrium (CGE) model of environmental policy in the U.S., we build an aggregated Cobb-Douglas (CD) model that can be solved easily and analytically. Its closed-form expressions show exactly how key parameters determine the sign and size of effects from a large new carbon tax on emissions, revenue, prices, output, and welfare. Data and parameters from the detailed, dynamic CGE model of Goulder and Hafstead (2018) are used in the CD model to calculate results that can be compared with theirs. Results from the CD model track those from the large CGE model quite closely, even though the CD model omits much detail such as the number of sectors, intermediate inputs, and international trade. A CGE model is quite useful to generate detailed numerical results and to reflect on particular aspects of environmental policy, but the simpler CD model provides a transparent view of exactly how the policy affects key outcomes.
    JEL: H23 Q28 Q54
    Date: 2019–02
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:25582&r=all
  8. By: Schaufele, Brandon
    Abstract: Two basic propositions underlying the economics of taxation -- that excess burdens increase in elasticities and tax rates -- are shown to cause the stringency of a Pigouvian tax to vary nonlinearly with output prices. This varying stringency of carbon taxation contributes to unfavorable competitiveness consequences following shocks to demand. Empirically, this paper measures the change in carbon tax stringency by structurally recovering the supply schedule for a particular industry such that elasticities and carbon tax rates change according to the distribution of output prices. Based on this supply function, the relationship between marginal excess burden, a measure of policy stringency from the industry's perspective, and product prices is estimated. Results for the Canadian cattle industry show that with moderately high output prices, supply elasticities are small, tax rates are low and the efficiency cost of a carbon tax (gross of environmental benefits), such as the one introduced in Canada, is less than \$0.01 per dollar tax revenue. As prices decline, supply curves become increasingly elastic, tax rates rise and marginal excess burdens grow rapidly.
    Keywords: Carbon pricing; cattle; marginal excess burden; production function
    JEL: H23 Q1 Q5
    Date: 2019–02–08
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:92132&r=all
  9. By: Fabien Leurent (LVMT - Laboratoire Ville, Mobilité, Transport - IFSTTAR - Institut Français des Sciences et Technologies des Transports, de l'Aménagement et des Réseaux - UPEM - Université Paris-Est Marne-la-Vallée - ENPC - École des Ponts ParisTech); Sheng Li (LVMT - Laboratoire Ville, Mobilité, Transport - IFSTTAR - Institut Français des Sciences et Technologies des Transports, de l'Aménagement et des Réseaux - UPEM - Université Paris-Est Marne-la-Vallée - ENPC - École des Ponts ParisTech); Hugo Badia (KTH - Royal Institute of Technology [Stockholm])
    Abstract: The paper develops a structural model and a design methodology for transit system planning in an urban area. Transit "components" are modelled by subarea and by sub-mode in terms of line length, station spacing, and fleet size, in order to determine both quality of service and production costs. Roadway networks are modeled with a Macroscopic Fundamental Diagram that relates speed to network capacity and vehicle demand. Local and global environmental impacts are considered. Travel demand includes both mode-dependent users and mode-choosers able to adopt the mode that offers higher utility. The design methodology involves a mathematical program of welfare optimization with respect to transit factors and fares. Two definitions of welfare are given, one that takes into account only demand surplus and supply profit, the other including environmental impacts. An example of application to Greater Paris shows that there is room for system optimization under current subsidy conditions, and that the explicit inclusion of environmental impacts brings about a significant shift in the "optimal" policy package.
    Keywords: multimodal transportation,transit network,design model,social welfare,environmental impacts
    Date: 2018–09–17
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-02010003&r=all
  10. By: Mendez-Guerra, Carlos
    Abstract: This paper studies environmental efficiency convergence across the prefectures of Japan over the 1992-2008 period. Using a novel nonparametric density estimation clustering framework, two alternative indicators of environmental efficiency are contrasted: a conventional indicator, based on the ratio of gross regional product to CO2 emissions, and a more comprehensive indicator, based on the data envelopment analysis (DEA) model. Results show, on the one hand, a lack of intra-distributional mobility and potentially a unique convergence cluster when using the more conventional indicator. On the other hand, large backward mobility and at least two convergence clusters are identified when using the DEA-based indicator of environmental efficiency. The paper concludes arguing the importance of accounting for production inputs, as they appear to be driving the formation of regional convergence clusters in Japan.
    Keywords: environmental efficiency, convergence, nonparametric density, Japan
    JEL: O47 O53 R10 R11
    Date: 2019–02–18
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:92245&r=all
  11. By: Hayat, Arshad; Tahir, Muhammad
    Abstract: This research paper investigates the impact of natural resources’ volatility on economic growth. The paper focused on three resources rich economies namely; UAE, Saudi Arabia, and Oman. Using data from 1970 to 2016 and employing the autoregressive distributed lag (ARDL) cointegration approach developed by Pesaran, Shin, and Smith (2001), we found that both natural resources and their volatility matters from the growth perspective. The study found strong evidence in favor of a positive and statistically significant relationship between the natural resource and economic growth for the economy of UAE and Saudi Arabia. Similarly, for the economy of Oman, a positive but insignificant relationship is observed between natural resources and economic growth. However, we found that the volatility of natural resources has a statistically significant negative impact on the economic growth of all three economies. This study contradicts the traditional concept of resources curse and provides evidence of resources curse in the form of a negative impact of volatility on economic growth.
    Keywords: Natural Resources, Volatility, Economic Growth, ARDL Modeling, GCC
    JEL: O4 Q33
    Date: 2019
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:92293&r=all
  12. By: Regmi, Hari P
    Keywords: Environmental Economics and Policy
    Date: 2019–02
    URL: http://d.repec.org/n?u=RePEc:ags:saea19:284308&r=all
  13. By: Fernando M. Arag\'on (Department of Economics, Simon Fraser University); Francisco Oteiza (Department of Social Science, UCL Institute of Education); Juan Pablo Rud (Department of Economics, Royal Holloway, University of London and Institute of Fiscal Studies)
    Abstract: This paper examines how subsistence farmers respond to extreme heat. Using micro-data from Peruvian households, we find that high temperatures reduce agricultural productivity, increase area planted, and change crop mix. These findings are consistent with farmers using input adjustments as a short-term mechanism to attenuate the effect of extreme heat on output. This response seems to complement other coping strategies, such as selling livestock, but exacerbates the drop in yields, a common measure of agricultural productivity. Using our estimates, we show that accounting for land adjustments is important to quantify damages associated with climate change.
    Date: 2019–02
    URL: http://d.repec.org/n?u=RePEc:arx:papers:1902.09204&r=all
  14. By: Bocklet, Johanna (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Hintermayer, Martin (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Schmidt, Lukas (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Wildgrube, Theresa (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI))
    Abstract: With the increase of the linear reduction factor (LRF), the implementation of the market stability reserve (MSR) and the introduction of the cancellation mechanism (CM), the EU ETS changed fundamentally. We develop a discrete time model of the intertemporal allowance market that accurately depicts these reforms assuming that prices develop with the Hotelling rule as long as the TNAC is non-empty. A sensitivity analysis ensures the robustness of the model results regarding its input parameters. The accurate modelling of the EU ETS allows for a decomposition of the effects of the individual amendments and the evaluation of the dynamic efficiency. The MSR shifts emissions to the future but is allowance preserving. The CM reduces the overall emission cap, increasing allowance prices in the long run, but does not significantly impact the emission and price path in the short run. The increased LRF leads with 9 billion cancelled allowances to a stronger reduction than the CM and is therefore the main price driver of the reform.
    Keywords: Market Stability Reserve; Dynamic Optimization; Cap and Trade; EU ETS; Cancellation Mechanism; Intertemporal Trading
    JEL: C61 H23 H41 L52 P14 Q48 Q54 Q58
    Date: 2019–02–25
    URL: http://d.repec.org/n?u=RePEc:ris:ewikln:2019_004&r=all
  15. By: Dang, Hai-Anh H.; Fu, Haishan; Serajuddin, Umar
    Abstract: The Sustainable Development Goals (SDGs) recently adopted by the United Nations represent an important step to identify shared global goals for development over the next two decades. Yet, the stated goals are not as straightforward and easy to interpret as they appear on the surface. Review of the SDG indicators suggests that some further refinements can be made to their wordings, and their underlying objectives can be further clarified. We bring attention to potential pitfalls with interpretation, where different evaluation methods can lead to different conclusions about country performance. Review of the United Nations’ SDG database highlights the overwhelming challenge with missing data: data are available for just over half of all indicators and for just 19 percent of what is needed to comprehensively track progress across countries and over time. We offer further reflections and propose some simple but cost-effective solutions to these challenges.
    Keywords: SDGs,monitoring,data challenges,survey data,international organization
    JEL: F00 I3 O1
    Date: 2019
    URL: http://d.repec.org/n?u=RePEc:zbw:glodps:327&r=all
  16. By: Sujan Adhikari (UWO - University of Western Ontario); Dileep Adhikary (PRAMA - Project Research and Management Associates)
    Abstract: Nepal has remained a disaster-prone country with major disasters occurring at various intervals. There has not been sufficient research on Nepal disasters regarding the degree of loss, effects on the economy and post-disaster responses and its effects on economic revival. This paper was primarily set to analyze economic effect of natural disasters from 1971 to 2017 but for the lack of complete data on loss value for all the events an attempt was made to make a proper estimate for all the events; and the economic loss ensuing from the disasters has been assessed as a proportion of gross domestic product, and further to its impact on the year to year growth of the economy. The paper adds to the finding of other studies that disaster lends negative effect and that too is more prominent in the event of major disasters and more pronounced when coupled with political disruptions.
    Keywords: Typology/category of disasters,Hazards and vulnerability,Economic growth and loss
    Date: 2019–01–25
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01995386&r=all
  17. By: Ebadi, Nasim; Bosch, Darrell; White, Robin
    Keywords: Environmental Economics and Policy, Resource/Energy Economics and Policy, Resource/Energy Economics and Policy
    Date: 2019–02
    URL: http://d.repec.org/n?u=RePEc:ags:saea19:284337&r=all
  18. By: Fernandez, Cheryl Joy (Asian Development Bank); Raitzer, David (Asian Development Bank); Ginting , Edimon (Asian Development Bank)
    Abstract: Economic analysis often faces challenges in the valuation of nonmarket goods and services. The traditional set of nonmarket valuation tools for measuring Marshallian economic surplus has limitations related to potential bias in stated preferences and endogeneity of nonmarket amenity placement in revealed preference studies. The life satisfaction approach offers a Hicksian compensating variationbased alternative, which uses self-reported subjective well-being to calculate the marginal rate of substitution of income for nonmarket amenities or services. The conceptual basis for the approach is explained and illustrated with an example from Iloilo, Philippines. Recommendations are offered for future application of the technique in the economic analysis of investment projects.
    Keywords: economic analysis; life satisfaction; natural disasters; Philippines; valuation; well-being
    JEL: D61 D69 D90 H40 Q51
    Date: 2019–01–29
    URL: http://d.repec.org/n?u=RePEc:ris:adbewp:0569&r=all
  19. By: Sonko, Ebrima; Florkowski, Wojciech; Agodzo, Sampson; Antiwe-Agyei, Phillip
    Keywords: Environmental Economics and Policy
    Date: 2019–02
    URL: http://d.repec.org/n?u=RePEc:ags:saea19:284275&r=all
  20. By: Fujii, Hidemichi; Managi, Shunsuke; Kawahara, Hiromitsu
    Abstract: This study analyzes productivity in the context of environmental regulations on the provision and dissemination of environmental information. Our study measures total factor productivity (TFP) by considering the emission of toxic chemical substances in the U.S. and Japan and the two countries’ corresponding policies. We apply the directional distance function to measure the Luenberger productivity indicator to estimate TFP. The data for U.S. and Japanese manufacturing firms include 386 firms over 1999 and 2007 and 466 firms over 2001 to 2008, respectively. This paper focuses on nine industries with highest pollution intensity: rubber and plastic, chemicals and allied products, paper and pulp, steel and non-ferrous metal, fabricated metal, industrial machinery, electric products, transportation equipment, and precision instruments. These nine sectors are categorized into two industry groups: the basic materials group and the processing and assembly group. The results show that productivity improved in all industrial sectors in the U.S. and Japan from 2001 to 2007. In particular, the electric product industry improved rapidly after 2002 for both countries. The enforcement of RoHS and the REACH directive in Europe might be one of the reasons for these increases. These stringent restrictions on toxic chemical substances give U.S. companies that export to the European market a strong incentive to treat their toxic chemical substances.
    Keywords: Environmentally Sensitive Productivity; Toxic Chemical Substances; Pollution Release and Transfer Register; Manufacturing Sector; United States, Japan
    JEL: L16 L65 O47
    Date: 2019
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:92235&r=all
  21. By: Aparicio, Jesus; Tenza-Abril, Antonio; Borg, Malcolm; Galea, John; Candela, Lucila
    Abstract: Maltese agriculture faces great challenges due to the severe scarcity ofwater. Sufficientwater resources, in quantity and quality, are necessary to cover the demand in the production of wine grape, one of the most important crops in Maltese agriculture. But also, economic efficiency is essential in the grape cultivation. A Cost-Benefit Analysis (CBA) is defined for Maltese vineyards in the Siġġiewi region, considering two irrigation scenarios, irrigation with groundwater or “do-nothing”, comparedwith the “use non-conventional waters” from mixing water from a small desalination plant and groundwater. For the alternative ‘mixing desalinatedwater with groundwater’ it is possible to improve water availability and quality for vine crops, while increasing economic benefits for farmer. The results indicate a profitable project fromaminimumarea of 1 ha, but final benefit is highly dependent on the irrigated surface extension according to water price. Desalination, compared with other type of nonconventional water is considered the best option in this assessment with a small reverse osmosis (RO) desalination plant (120 m3 /day) for covering the irrigation needs.
    Keywords: Cost Benefit Analysis Desalinated water Groundwater Vine crops Agricultural management
    JEL: Q01 Q14 Q16 Q56
    Date: 2018–07–09
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:92268&r=all
  22. By: Adimassu, Zenebe; Langan, Simon; Barron, Jennie
    Abstract: This paper provides details of soil and water conservation (SWC) investments in Ethiopia over the past 20 years. It presents SWC practices and estimates the level of SWC investments in different regions. The paper focuses on four principal agricultural regions: Amhara, Oromia, SNNPR and Tigray. Primary and secondary data were collected for the analysis, and consultations were conducted at regional levels. Primary data on diverse SWC practices, their numbers and areal extent were obtained from the archives of regional Bureaus of Agriculture (BoAs). The results of this study show that several projects involving significant financial investment have been implemented to reverse land degradation and improve land productivity in Ethiopia since the 1970s. The list of projects is not comprehensive due to a lack of documentation at all levels, but it does provide some insights into the scale of SWC investments and implementation. The projects analyzed in the four regions fall into the following categories: farmland management, hillside management and gully rehabilitation practices, including check dams and cut-off drains. The analysis shows that these practices involved both paid and unpaid labor, together representing an estimated investment of more than ETB 25 billion (or approximately USD 1.2 billion) per year over the past 10 years. It is clear that large investments have been made in SWC activities in Ethiopia. However, the outcomes in terms of impact on yield and livelihood benefits are yet to be fully understood. A comprehensive assessment is needed to measure the impact of SWC activities on farmers’ livelihoods and the environment. A key recommendation arising from the analysis is that more data and information are needed on the successes and failures of SWC practices, which will assist stakeholders to better guide and target future projects and investments. An additional recommendation is to consider the biophysical and financial impact of soil erosion, both on and off farm.
    Keywords: Agricultural Finance, Community/Rural/Urban Development, Farm Management, Industrial Organization, Land Economics/Use, Public Economics
    Date: 2018–02–14
    URL: http://d.repec.org/n?u=RePEc:ags:iwmirp:284236&r=all
  23. By: Kounetas, Konstantinos; Stergiou, Eirini
    Abstract: Assessment of industrial-level energy efficiency development is a critical research topic that has infiltrated in the global battle against climate change. A balanced panel of fourteen European industries from twenty-four countries for the period 1995-2011 is introduced into a metafrontier framework. Reflecting the divergent views on the importance of desirable and undesirable outcomes in the pursuit of energy efficiency, the proposed approach estimate industrial performance by prioritizing either economic or environmental criterion incorporating technological heterogeneity. It is found that small-scale economies exhibit persistent high energy efficiency scores. Regarding energy efficiency determinants, path dependence phenomena have a strong presence, climate characteristics occurs, while energy mix displays linear but also non-linear relationships. Finally, regardless of the method employed, there is a strong evidence of conditional and unconditional convergence.
    Keywords: European industries, Energy efficiency, Technology heterogeneity,Directional distance function, Energy mix, Path dependence, Convergence.
    JEL: D24 D29 Q40 Q49
    Date: 2019–01–03
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:92314&r=all
  24. By: Gregory, Evan James; Li, Xiaofei
    Keywords: Agricultural Finance, Farm Management, Agribusiness
    Date: 2019–02
    URL: http://d.repec.org/n?u=RePEc:ags:saea19:284315&r=all
  25. By: Giovanni Marin (University of Urbino Carlo Bo, Italy; SEEDS, Italy); Marco Modica (Gran Sasso Science Institute, Italy; SEEDS, Italy); Susanna Paleari (IRCrES-CNR, Italy; SEEDS, Italy); Roberto Zoboli (Catholic University of Milan, Italy; IRCrES-CNR, Italy; SEEDS, Italy)
    Abstract: The paper provides a comprehensive assessment of hazard, exposure, vulnerability and resilience related to natural disasters in Italian municipalities. Indicators of the various components of risk assessment are built according to state-of-the-art methods. The combination of these dimensions is especially useful to identify hot spots that are characterized by high hazard, exposure and vulnerability and by low resilience. We also discuss the extent to which the institutional framework in place in Italy is able to deal with natural disasters. The Disaster Risk Assessment tool (DRAT) developed by our paper may help policy makers in prioritising areas for intervention and it is particularly valuable when effective choices about mitigation and prevention strategies are to be taken in presence of tight public budgets.
    Keywords: natural disasters, hazard, exposure, vulnerability, resilience
    Date: 2019–02
    URL: http://d.repec.org/n?u=RePEc:srt:wpaper:0319&r=all
  26. By: Thanh Mai Ha (School of Economics and Finance, Massey University, Palmerston North, New Zealand and Faculty of Economics and Rural Development, Vietnam National University of Agriculture, Vietnam); Shamim Shakur (School of Economics and Finance, Massey University, Palmerston North, New Zealand); Kim Hang Pham Do (School of Economics and Finance, Massey University, Palmerston North, New Zealand)
    Abstract: The concern about vegetable safety, together with a booming population and the rise of the middle class has made Vietnam become a potential market for organic vegetables. This paper investigates the determinants of willingness to pay (WTP) for organic vegetables in Hanoi, Vietnam with a particular attention to regional differences and the effect of risk perception. Using Contingent Valuation Method to analyze the data from a sample of 498 consumers in Hanoi, the paper shows that the perceived use values of organic vegetables, trust in organic labels, and disposable family income increased WTP for organic vegetables in both urban and rural regions. Though risk perception of conventional vegetables was high in both regions, such heightened risk perception just translated into the WTP in the rural region. In addition, the percentage of home-grown vegetables in the total vegetable consumption of the family influenced the WTP in the rural region only. Moreover, being an organic purchaser was positively related to the WTP in the urban region but not in the rural region. The paper also discusses three policy implications for Vietnam to boost the demand for organic food.
    Keywords: Willingness to pay, organic vegetables, food safety, rural-urban difference, Hanoi
    JEL: Q18 D12 I12 Q13 R22
    Date: 2018
    URL: http://d.repec.org/n?u=RePEc:mas:dpaper:1808&r=all
  27. By: Sellars, Sarah C.; Thompson, Nathanael M.; Wetzstein, Michael E.; Bowling, Laura C.; Cherkauer, Keith A.; Frankenberger, Jane R.; Prokopy, Linda S.
    Keywords: Agricultural Finance, Farm Management, Environmental Economics and Policy
    Date: 2019–02
    URL: http://d.repec.org/n?u=RePEc:ags:saea19:284271&r=all
  28. By: Minegishi, Kota; Jette-Nantel, Simon
    Keywords: Agribusiness, Production Economics, Research and Development/Tech Change/Emerging Technologies, Productivity Analysis
    Date: 2019–02
    URL: http://d.repec.org/n?u=RePEc:ags:saea19:284298&r=all
  29. By: Gebrezgabher, Solomie; Taron, A.; Odero, J.; Njenga, M.
    Keywords: Agribusiness, Agricultural Finance, Farm Management, Financial Economics, Labor and Human Capital, Resource /Energy Economics and Policy
    Date: 2018–02–26
    URL: http://d.repec.org/n?u=RePEc:ags:iwmirp:284246&r=all
  30. By: Swartz, Alexander Ogden; Saghaian, Sayed; Mark, Tyler
    Keywords: Agricultural Finance, Farm Management, Marketing, Food Consumption/Nutrition/Food Safety, Production Economics, Research Methods/Statistical Methods
    Date: 2019–02
    URL: http://d.repec.org/n?u=RePEc:ags:saea19:284312&r=all
  31. By: Salifu, Abdul Wahab; Gedikoglu, Haluk; Parcell, Joseph
    Keywords: Demand and Price Analysis, Environmental Economics and Policy, Productivity Analysis, Research and Development/Tech Change/Emerging Technologies
    Date: 2019–02
    URL: http://d.repec.org/n?u=RePEc:ags:saea19:284274&r=all
  32. By: Calderon Ambelis, Heydi; Buser, Michael; Holcomb, Rodney; Craige, Collin; Buser, Guy
    Keywords: Agribusiness, Industrial Organization, Research and Development/Tech Change/Emerging Technologies, Productivity Analysis
    Date: 2019–02
    URL: http://d.repec.org/n?u=RePEc:ags:saea19:284305&r=all
  33. By: van Goethem, Thomas; Van Zanden, Jan Luiten
    Abstract: There is an urgent need for studying the development of biodiversity in the (recent) past. It is one of the biggest threats to the sustainable future of mankind, and the process is largely driven by economic and demographic changes. However, it has however not received much attention by economic historians. Several (historical) socio-economic drivers of biodiversity have been recognized, however, the extent, rate and precise causes of current decline remains unknown. A historical perspective on biodiversity and the network of socio-economic factors causing it, will lead to a more inclusive understanding of the complex human-nature relations resulting in biodiversity decline. The models currently used to simulate these processes, and theoretical notions about it, have not been sufficiently tested against the historical record. To that end, it is proposed to study biodiversity on the basis of historical records and data. Moreover, a research framework is presented that may be the starting point for the new research agenda. The framework gives a schematic overview of the interconnected natural and socio-economic systems across different temporal, spatial and biological scales. This is then applied to the case of the Netherlands in the 20th century, and the causes of the decline and recent rise of biodiversity are analyzed.
    Keywords: biodiversity; economic history; sustainability
    JEL: Q57
    Date: 2019–02
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:13544&r=all
  34. By: Akande, Emmanuel Omotayo; Adams, Damian; Stefanou, Spiro
    Keywords: Agricultural Finance, Farm Management, Agribusiness, Environmental Economics and Policy, Agricultural and Food Policy, Production Economics, Risk & Uncertainty, Research Methods/Statistical Methods
    Date: 2019–02
    URL: http://d.repec.org/n?u=RePEc:ags:saea19:284341&r=all
  35. By: Xu, Yuelu; Bosch, Darrell
    Keywords: Resource/Energy Economics and Policy, Resource/Energy Economics and Policy
    Date: 2019–02
    URL: http://d.repec.org/n?u=RePEc:ags:saea19:284272&r=all
  36. By: González-Val, Rafael; Pueyo, Fernando
    Abstract: Worldwide materials extraction increased by a factor of 8.4 over the course of the 20th century. In the meantime, global GDP and population increased by factors of about 22 and 4, respectively. This reveals that one of the key factors driving the increase in the exploitation of the resources was the growth in world population, although mitigated by the reduction in the intensity in the use of the resources in production. In this paper, we present a model that combines the theory of endogenous growth and the economy of natural resources, but taking into account the geographical distribution of economic activity. Indeed, the New Economic Geography provides insights about two elements that, although speeding up GDP growth, can curb the pressure on natural resources, namely the reduction in transports costs and a boost to pace of innovation.
    Keywords: industrial location, endogenous growth, renewable resource, geography
    JEL: F43 O30 Q20 R12
    Date: 2019–02
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:92396&r=all
  37. By: Matthew E. Kahn; Pei Li
    Abstract: The quality of governance depends on public sector worker productivity. We use micro data from China to document that judges are less productive on polluted days. Building on the insights of Alchian and Kessel (1962), we discuss the role of organization design and the incentives of public versus for profit organizations in designing a workplace that reduces the productivity costs of local disamenities. We find that the public sector productivity elasticities are larger than published estimates of the private sector productivity elasticities with respect to pollution.
    JEL: H11 Q53
    Date: 2019–02
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:25594&r=all
  38. By: Dias, Mateus (Princeton University); Rocha, Rudi (São Paulo School of Business Administration); Soares, Rodrigo R. (Columbia University)
    Abstract: This paper assesses the impact of glyphosate use in agriculture on birth outcomes of human populations in surrounding areas. Glyphosate is the most widely used herbicide in the world. Still, despite ongoing controversy, little is known about its effects on human populations at large. Our empirical strategy relies on the fact that glyphosate is strongly complementary to the use of genetically modified seeds in soybean production. We use an instrument based on the gains in productivity from adoption of genetically modified soybeans and look at externalities across municipalities sharing the same water resources. We detect negative and statistically significant effects of glyphosate use on birth outcomes. Our results indicate externality effects of glyphosate use on populations distant from the original locations of use, but receiving water from these locations.
    Keywords: glyphosate, herbicides, birth outcomes, infant mortality, water, externalities
    JEL: I18 Q53 Q15 O33
    Date: 2019–02
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp12164&r=all

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