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on Resource Economics |
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Issue of 2010‒11‒27
six papers chosen by |
| By: | Steven Poelhekke; Rick van der Ploeg |
| Abstract: | A new and extensive panel of outward foreign direct investment (FDI) at the sector level is used to estimate the determinants of non-resource and resource FDI. Since FDI is I(1), we estimate panel error-correction models of FDI with spatial lags for FDI and market potential. Our main result is that subsoil assets boost resource FDI, but crowd out non-resource FDI. The effect on non-resource FDI dominates, so that aggregate FDI is less in resource-rich countries. Spatial lags aggravate this crowding out of non-export-fragmentation variety: (ii) trade openness, free trade agreements and institutional quality do not impact non-resource FDI but institutional quality does have a positive effect on resource FDI; and (iii) the short-run dynamics comes mostly from shocks to FDI itself. Our main and ancillary results are robust to different measures of resource reserves and the oil price and to allowing for sample selection bias. |
| Keywords: | outward sector level FDI, subsoil assets, co-integration tests, spatial econmetrics, hydrocarbon reserves, external margin, sample selection bias |
| JEL: | C21 C33 F21 Q33 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:051&r=res |
| By: | Benjamin Bureau (CERNA - Centre d'économie industrielle - Mines ParisTech) |
| Abstract: | This paper analyses the distributional effects of alternative scenarios of carbon taxes on car fuels using disaggregated French panel data from 2003 to 2006. It incorporates household price responsiveness that differs across income groups into a consumer surplus measure of tax burden. Carbon taxation is regressive before revenue recycling. However, taking into account the benefits from congestion reduction induced by the tax mitigates regressivity. We show also that recycling additional revenues from the carbon tax either in equal amounts to each household or according to household size makes poorest households better off. |
| Keywords: | carbon tax; distributional effects |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00530054_v2&r=res |
| By: | Choi, Eunho (Korea University); Heshmati, Almas (Korea University); Cho, Yongsung (Korea University) |
| Abstract: | This paper investigates the existence of the environmental Kuznets curve (EKC) for carbon dioxide (CO2) emissions and its causal relationships with economic growth and openness by using time series data (1971-2006) from China (an emerging market), Korea (a newly industrialized country), and Japan (a developed country). The sample countries span a whole range of development stages from industrialized to newly industrialized and emerging market economies. The environmental consequences according to openness and economic growth do not show uniform results across the countries. Depending on the national characteristics, the estimated EKC show different temporal patterns. China shows an N-shaped curve while Japan has a U-shaped curve. Such dissimilarities are also found in the relationship between CO2 emissions and openness. In the case of Korea and Japan it represents an inverted U-shaped curve, while China shows a U-shaped curve. We also analyze the dynamic relationships between the variables by adopting a vector auto regression or a vector error correction model. These models through the impulse response functions allow for analysis of the causal variable's influence on the dynamic response of emission variables and it adopts a variance decomposition to explain the magnitude of the forecast error variance determined by the shocks to each of the causal variables over time. Results show evidence of large heterogeneity among the countries and variables impacts. |
| Keywords: | carbon dioxide (CO2), environmental Kuznets curve (EKC), economic growth, free trade, development |
| JEL: | C32 F18 F43 N55 O13 Q56 |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5304&r=res |
| By: | Östberg, Katarina (CERE); Hasselström, Linus (Enveco); Håkansson, Cecilia (KTH) |
| Abstract: | The EU Water Framework Directive (WFD) requires coastal water quality to be classified according to ecological indicators. In this paper, contingent valuation is used to estimate the value of improving the water quality status according to this classification, investigating if this type of holistic political-ecological measure can be related to and valued in monetary terms by the general public. A web-based survey was conducted in two study areas on the Swedish East and West coast. The paper focuses on eutrophication effects, such as bad water clarity, a decrease of bladder wrack stands and algae mats. These water quality elements affect recreational use of coastal areas. Relating to recreational use, two other environmental attributes are addressed – algae blooms and protection of marine areas in terms of e.g. restrictions for boat traffic. The restrictions scenario is also holistic in terms of several imposed restrictions, as well as tightly linked with existing policy. Conducting valuation studies based on a policy-determined measure is beneficial for decisionmakers but also for research e.g. in terms of data availability. It is concluded that these politically defined measures seem to work well as a basis for economic valuation. The respondents are in general both able to understand and to put a monetary value to the measures. This is an important first step, paving the ground for further studies. The monthly mean household WTP between the years 2010 – 2029 ranges from 61 to 108 SEK for improved water quality, from 54 to 84 SEK for less algae blooms and from 32 to 50 SEK for less noise and littering. Regarding noise and littering in archipelago areas in Northern Europe, this is to our knowledge the first WTP estimate that has been presented. The respondents from the East coast region express relatively high mean WTP values compared to the respondents on the West coast for all scenarios. The differences in mean WTP values between the study areas, which are reflected in the transfer errors, indicate that even though the coasts are similar in terms of use and environmental problems, and the respondents have many similar characteristics, a point estimate benefit transfer between the two coasts is not recommended unless high transfer errors are acceptable. WTP is affected by gender, membership of an NGO, whether or not the respondent has children, whether or not the respondent has a foreign background, frequency of visiting the area and whether or not the respondent uses a boat with an engine effect of more than 10 hp while visiting the area. |
| Keywords: | non-market valuation; choice experiments; water framework directive |
| JEL: | Q25 Q51 |
| Date: | 2010–06–02 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:slucer:2010_010&r=res |
| By: | Agnar Sandmo |
| Abstract: | This paper considers the role of global environmental taxes both as instruments for improving the global environment and as a source of revenue for funding economic development. It reviews the general case for environmental taxes and the particular issues that arise for the adoption of such taxes in an international setting without a single jurisdiction. It also discusses the possibilities for political acceptance of such taxes when tax revenue is linked to the goal of economic development. The revenue potential of global environmental taxes is evaluated with special reference to a global carbon tax. It is found that this tax alone has the potential to raise sufficient revenue to finance the United Nations’ Millennium Development Goals. [Discussion Paper No. 2003/86] |
| Keywords: | environment, taxation, carbon tax, consumption |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:3200&r=res |
| By: | Esther Duflo; Michael Greenstone; Nicholas Ryan; Rohini Pande |
| Abstract: | This paper connects experience with emissions trading, from programs like the U.S. Rain program, to lessons for implementation of a Trading Pilot Scheme in India. This experience suggests that four areas are especially important for successful implementation of an emissions trading scheme. |
| Keywords: | India, emissions trading, US, rain program, air pollutants, industry, industries, costs, pollution, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:3178&r=res |