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on Resource Economics |
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Issue of 2009‒02‒14
five papers chosen by |
| By: | Førsund, Finn R. (Dept. of Economics, University of Oslo) |
| Abstract: | The materials balance principle points to the crucial role of material inputs in generating residuals in production processes. Pollution modelling must be of a multi-output nature. The most flexible transformation function in outputs and inputs used in textbooks is too general to make sense in pollution modelling. Specifying bads as if they are inputs, although may be defendable on a macro level as a reduced form, hides explicit considerations of various modification activities. Extending the non-parametric efficiency approach to cover bads as outputs, assuming weak disposability of the bads as the only change in the modelling of the technology, has serious weaknesses. A complete taxonomy of inputs as to the impact on both residuals and marketed products as joint outputs is derived, based on factorially determined multi-output production, thus providing information for choice of policy instruments. |
| Keywords: | Multiple-output production; pollution; bads; purification; DEA |
| JEL: | D62 Q50 |
| Date: | 2008–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:osloec:2008_030&r=res |
| By: | Hotel , Michael (Dept. of Economics, University of Oslo) |
| Abstract: | Fossil fuels are non-renewable carbon resources, and the extraction path of these resources depends both on present and future demand. When this “Hotelling feature”is taken into consideration, the whole price path of carbon fuel will shift downwards as a response to the reduced cost of the renewable substitute. An implication of this is that greenhouse gas emissions in the near future may increase as a response to the reduced cost of the renewable substitute. If this is the case, increased climate costs may outweigh the bene…ts of reduced costs of a substitute, thus reducing overall social welfare. |
| Keywords: | Climate change; exhaustible resources; renewable energy |
| JEL: | Q30 Q42 Q54 |
| Date: | 2008–12–02 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:osloec:2008_029&r=res |
| By: | Brekke , Kjell Arne (Dept. of Economics, University of Oslo); Klipperberg, Gorm (Colorado State University); Nyborg , Karine (Dept. of Economics, University of Oslo) |
| Abstract: | Several studies have demonstrated that individual contributions to public goods are increasing in others’ contributions. The underlying causes for this, however, are not yet fully understood. We present a model of duty-orientation in which moral responsibility is learned through observations of others’ behavior. Since, in our model, responsibility is a burden, we hypothesize that individuals will be reluctant to accept responsibility based on uncertain information. Econometric analysis of data from a survey on households’ glass recycling indicates that perceived responsibility is a major determinant for reported recycling; that responsibility ascription is influenced by beliefs about others’ behavior; and that people are indeed reluctant to accept responsibility based on uncertain information. |
| Keywords: | Voluntary contributions; duty-orientation; recycling; joint FIML estimation |
| JEL: | D11 D12 D64 Q53 |
| Date: | 2009–02–02 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:osloec:2007_016&r=res |
| By: | Nævdal , Eric (Ragnar Frisch Centre for Economic Research); Vislie, Jon (Dept. of Economics, University of Oslo) |
| Abstract: | Discounting in the presence of catastrophic risk is a hotly debated issue, in particular with respect to climate change. Many scientists and laymen concerned with potentially catastrophic impacts feel that if an increase in the discount rate drastically increases the likelihood of catastrophic outcomes, this discredits economic cost-benefit calculations. This paper argues that this intuition is sound and that if cost-benefit calculations are done within a model that encompasses the type of catastrophic risk that these scientists worry about, the resulting stabilization target will only be slightly influenced by the discount rate. This is shown within a stylized model of a risk neutral decision maker facing a problem with a catastrophic threshold with unknown location. |
| Keywords: | climate change; discounting; catastrophic risk; optimal control |
| JEL: | A10 |
| Date: | 2008–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:osloec:2008_028&r=res |
| By: | Lund, Diderik (Dept. of Economics, University of Oslo) |
| Abstract: | The literature on taxation of rents from nonrenewable resources uses different theoretical assumptions and methods and a variety of empirical observations to arrive at widely diverging conclusions. Many studies use models and methods which disregard uncertainty, investigating distortionary effects of different taxes on whether, when, and how to explore for, develop and operate resource deposits. Introducing uncertainty into the analysis opens a range of challenges, and leads to results which cast doubt upon the relevance of studies which neglect uncertainty. There are, however, several ways to analyze uncertainty, regarding companies' behavior, resource price processes, and diversification opportunities, all with different implications for taxation. Methods developed in financial economics since the 1980's are promising, but still not in widespread use. Some more specific topics covered in this review are optimal risk sharing between companies and gov- ernments, time consistency and scal stability, the relationship between taxes and discount rates, and transfer pricing. |
| Keywords: | Natural resources; rent tax; royalty; oil; minerals; energy |
| JEL: | B20 H20 H25 L71 O13 Q38 |
| Date: | 2009–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:osloec:2009_001&r=res |