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on Resource Economics |
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Issue of 2015‒07‒25
twelve papers chosen by |
| By: | Nikos Tsakiris; Panos Hatzipanayotou (Athens University of Economics and Business); Michael S. Michael |
| Abstract: | We construct a general equilibrium model of two regions with cross-border pollution, and with inter-regional (RCM) or international (ICM) capital mobility. Each region uses emission taxes, or intra- regionally, or inter-regionally tradable emission permits to reduce pollution. We show that the non-cooperative settings of all three instruments are always inefficient relative to their cooperative settings. When regions are symmetric, then (i) with RCM the non-cooperative setting of intra-regionally tradable emissions permits is welfare superior to that of the other two instruments, and (ii) with ICM the non-cooperative settings of intra-regionally tradable emission permits and of emission taxes are equivalent and superior to that of inter-regionally tradable emission permits. |
| Keywords: | Cross-border pollution, Tradable emission permits, Capital mobility, Welfare ranking |
| JEL: | F18 F21 H21 |
| Date: | 2015–07–17 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:1513&r=res |
| By: | Karine Constant (Aix-Marseille University (Aix-Marseille School of Economics), CNRS & EHESS) |
| Abstract: | This paper analyzes the economic implications of an environmental policy when we take into account the life expectancy of heterogeneous agents. In a framework where everyone suffers from pollution, but health status depends also on individual human capital, we find that the economy may be stuck in a trap where inequalities persistently grow, when the initial level of pollution is too high. Therefore, we study whether a tax on pollution associated with an investment in pollution abatement can be used to reduce inequalities and to improve endogenous growth. We obtain that a tighter environmental policy may allow the economy to escape the inequality trap and hence to converge to a long-term equilibrium without inequality, while it enhances the long-term growth rate. However, if inequalities or pollution are initially too high, such a result does not hold for reasonable tax rates. |
| Keywords: | environmental policy, endogenous growth, human capital, Inequality, longevity |
| JEL: | I15 O44 Q58 |
| Date: | 2015–07–07 |
| URL: | http://d.repec.org/n?u=RePEc:aim:wpaimx:1527&r=res |
| By: | Burtraw, Dallas (Resources for the Future); Bushnell, James; Munnings, Clayton (Resources for the Future) |
| Abstract: | The Clean Power Plan (CPP) is the centerpiece of the US efforts to reduce carbon emissions, introducing regulation of greenhouse gas emissions from existing power plants for the first time on a national basis. These regulations may interact with existing initiatives, for example, in California, where the state has a comprehensive economy-wide cap with emissions allowance trading in place. In addition, three Pacific coast states and British Columbia have supported the idea of comprehensive pricing. This paper provides a summary of a workshop that examined the interaction of these policy approaches. A main observation in the workshop was that the forthcoming CPP will likely facilitate and complicate the prospect of comprehensive carbon pricing. Multistate coordination in complying with the CPP could be key to making simultaneous progress on both the national and regional policy efforts and could provide a pathway from regulation to carbon pricing. |
| Keywords: | Clean Air Act, Clean Power Plan, carbon pricing, cap and trade, regulation, emissions rates |
| JEL: | Q28 Q48 Q58 |
| Date: | 2015–06–25 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-15-31&r=res |
| By: | Gray, Wayne B.; Shadbegian, Ronald J. |
| Abstract: | In 1998 the US Environmental Protection Agency (EPA) promulgated its first integrated, multimedia (air and water) regulation, known as the Cluster Rule (CR), which aimed to reduce toxic releases from pulp and paper mills. By integrating the air and water regulations, EPA tried to reduce the overall regulatory burden on the affected plants. In this paper, we compare EPA’s ex ante expected reductions to an ex post assessment of those reductions. Using data from 1991 to 2009 for approximately 150 pulp and paper mills for both toxic and conventional pollutants, we find significant reductions in chloroform releases, nearly identical to the ex ante prediction of 99 percent reductions. We see some reductions in air toxics, smaller than the ex ante prediction and not always significant. Reductions in VOC emissions are similar in magnitude to the ex ante predictions for OLS models but smaller for fixed-effect models. No significant impact is found on PM10 emissions. We draw conclusions for regulatory impact analyses and retrospective analyses, including the importance of carefully identifying expected compliance methods and the potential sensitivity of these analyses to the definition of the baseline. |
| Keywords: | air quality, air toxics, water quality, regulatory analysis, pulp and paper, Cluster Rule |
| Date: | 2015–06–22 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-15-26&r=res |
| By: | Micha Soliwoda (Institute of Agricultural and Food Economics – National Research Institute); Joanna Paw (Institute of Agricultural and Food Economics – National Research Institute) |
| Abstract: | A transition from conventional to sustainable model of agriculture depends on various factors. Sustainable development of farms may be described in terms of three dimensions, ("economic, environmental and social"). The Green Growth paradigm indicates the significance of economic policy interventions, including subsidies and tax incentives. A gap in the literature on agricultural economics and finance explains the need for studies on a fiscal dimension of sustainability of farms.The main aim of the paper was to highlight the role of selected tax policy tools from the perspective of sustainable development of agriculture. The research goals were as follows (1) to present a review of selected tax policy instruments in an international context, (2) to analyse the impact of selected tools on making pro-environmental actions (based on experts' opinions). Our paper concluded with proposals and recommendations on the aforesaid process for policymakers. Fiscal instruments that may affect sustainability in agriculture exist in the majority of Old Member States of European Union (e.g. the Netherlands, Germany, Austria). The ongoing “Agricultural tax” (‘podatek rolny’) that affect a majority of Polish farms and their organization of production favours leads to maintaining sustainability of agriculture (given an environmental dimension of sustainability). The existing tax instruments have a neutral or positive impact on environmental sustainability. The highest medium positive impact on the medium are characterized by capital allowances and deductions for the purchase of new environmental technologies.Polish policymakers should reasonably developed a more detailed fiscal policy instruments, e.g. investment reliefs (similarly, as in the Netherlands), subjective exemptions in respect of agro-environmental practices. In the near future a key role in environmental protection will be played by a group of small farm households. These entities will be responsible for provision of public goods for Polish agricultural sector. |
| Keywords: | agricultural taxation, sustainable development, agricultural finance, fiscal instruments, family farms |
| JEL: | Q14 H25 Q01 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:2604481&r=res |
| By: | Laurent Meunier (ADEME); Frédéric Gilbert (ADEME); Eric Vidalenc (ADEME) |
| Abstract: | In order to fight against climate change, ambitious targets have been set, such as decreasing carbon emissions by 75% in France compared to 1990. Yet, focusing on territorial impacts leads to overlook import-embedded impacts. As a matter of fact, French territorial greenhouse gases (henceforth GHG) emissions have slightly decreased since 1990, whereas consumption-based emissions have been shown to increase. This is why we focus in this paper on consumption-based emissions rather than territorial emissions. Moreover, other environmental impacts are taken into account: air acidification (ACD), photochemical oxidation(PCO) and non-dangerous industrial wastes (NDIW). The contribution of the research presented in this paper is three-fold: first, the quantification of import-embedded impacts of consumption-based emissions is more accurate than previous studies; secondly, we build a scenario of French households final consumption in 2030 aiming at decreasing its environmental impacts; finally, a deep matrix algebra analysis gives us precious hints on the reliability of the results. |
| Keywords: | input-output analysis, environmental externalities, scenario analysis |
| JEL: | Q40 Q53 Q54 |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2015.12&r=res |
| By: | Dragan Ilić; Janick Christian Mollet (University of Basel) |
| Abstract: | The rationale of voluntary corporate initiatives is often explained with preparedness for future regulation. We test this hypothesis for the Chicago Climate Exchange (CCX) and the Climate Leaders (CL), two popular voluntary US environmental programs to curb carbon emission that were operating during a decisive regulatory event. In 2009 the Waxman-Markey Bill surprisingly passed the House of Representatives and brought the US economy on the brink of a nationwide CO2 emission trading system. In an event study we assess how the stock market adjusted prices when the likelihood of CO2 regulation suddenly increased. Our results suggest that only membership in the CCX was considered beneficial, an initiative whose design happened to dovetail with the bill. Earlier membership announcement effects paint a complementary picture. But membership alone cannot account for the entire price adjustments. Our results reveal that a substantial part of the market reaction consisted of industry-wide effects. |
| Keywords: | Voluntary markets, permit markets, climate change, greenhouse gas emissions, CO2, corporate social responsibility, shareholder wealth |
| JEL: | G38 Q53 Q54 Q58 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:bsl:wpaper:2015/06&r=res |
| By: | World Bank |
| Keywords: | Environment - Ecosystems and Natural Habitats Water Resources - Coastal and Marine Resources Environment - Coastal and Marine Environment Fisheries and Aquaculture Environmental Economics Policies Agriculture |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:21906&r=res |
| By: | Weitzman, Martin L. |
| Abstract: | Abating climate change is an enormous international public goods problem with a classical "free rider" structure. But it is also a global "free driver" problem because geoengineering the stratosphere with reflective particles to block incoming solar radiation is so cheap that it could essentially be undertaken unilaterally by one state perceiving itself to be in peril. This exploratory paper develops the main features of a "free driver" externality in a simple model motivated by the asymmetric consequences of type-I and type-II errors. I propose a social-choice decision architecture embodying the solution concept of a supermajority voting rule and derive its basic properties. |
| Date: | 2015–07–15 |
| URL: | http://d.repec.org/n?u=RePEc:hrv:faseco:17368469&r=res |
| By: | World Bank |
| Keywords: | Health Monitoring Evaluation Rural Development - Common Property Resource Development Public Sector Development Environmental Economics Policies Water Resources - Wetlands |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:21885&r=res |
| By: | Valeria Costantini (Department of Economics, Roma Tre University, Rome (Italy)); Giorgia Sforna (Department of Economics, Roma Tre University, Rome (Italy)); Mariangela Zoli (Department of Economics and Finance, University of Tor Vergata (Italy)) |
| Abstract: | Despite the efforts made during the last climate conferences (COPs), countries participating in the negotiation process are still far from reaching an agreement on the implementation of a new Post-Kyoto climate regime. The growing role played by developing countries in negotiations is one of the main causes behind the deadlock. Further attention should therefore be paid to the composition of the coalitions formed by developing countries in order to better understand the key structural features driving their bargaining positions. By applying a cluster analysis, this paper aims to investigate the role played by heterogeneity in specific characteristics of developing countries in forming bargaining coalitions in climate negotiation. By clustering developing countries according to their economic, geographic, environmental, energy and social characteristics, the paper presents some considerations on climate political economy strategies in these countries. |
| Keywords: | Climate negotiations, Developing countries, Vulnerability, Cluster analysis, Climate models |
| JEL: | O19 Q54 Q56 |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:1215&r=res |
| By: | World Bank |
| Keywords: | Macroeconomics and Economic Growth - Climate Change Economics Environmental Economics and Policies Private Sector Development - E-Business Information and Communication Technologies - ICT Policy and Strategies Energy - Energy Production and Transportation Environment |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:21776&r=res |