New Economics Papers
on Agricultural Economics
Issue of 2011‒02‒05
twenty-six papers chosen by

  1. Environmental Impacts of Agricultural Technologies By Katherine Killebrew; Hendrik Wolff
  2. Ecosystem Services and Food Security: Economic Perspectives on Environmental Sustainability By Richardson, Robert B.
  3. Can we rely on cash transfers to protect dietary diversity during food crises ? estimates from Indonesia By Skoufias, Emmanuel; Tiwari, Sailesh; Zaman, Hassan
  4. Measuring Costs And Benefits Of Non-Tariff Measures In Agri-Food Trade By Beghin, John C.; Disdier, Anne-Celia; Marette, Stephan; van Tongeren, Frank
  5. Integrating Routine, Variety Seeking and Compensatory Choice in a Utility Maximizing Framework By Adamowicz, W.L. (Vic); Swait, Joffre
  6. Long-Run Trends in the Farm Size Distribution in Israel: The Role of Part-Time Farming By Kimhi, Ayal; Tzur, Nitzan
  7. Estimating machinery supply elasticities using output price booms By Jesse Edgerton
  8. A conceptual framework to assess vulnerability. Application to global change stressors on South Indian farmers By Stéphanie Aulong; Robert Kast
  9. Research on Socioeconomic Impacts of Chronic Wasting Disease (CWD) in Alberta By Adamowicz, W.L.; Arnot, C.; Boxall, P.; Dridi, C.; Goddard, E.; Jordan, M.; Forbes, K.; Laate, K.; Myshaniuk, K.; Parlee, B.; Petigara, M.; Unterschultz, J.; Zimmer, N.
  10. Signaling Credit-Worthiness: Land Titles, Banking Practices and Access to Formal Credit in Indonesia By Paul Dower; Elizabeth Potamites
  11. Real Estate Brokers: Do they inflate housing prices? By Arnaud Simon
  12. The Impact of Stochastic Convenience Yield on Long-term Forestry Investment Decisions By Shan Chen; Margaret Insley; Tony Wirjanto
  13. The use of indicators for unobservable product qualities: inferences based on consumer sorting By Nagler, Matthew G.; Kronenberg, Fredi; Kennelly, Edward J.; Jiang, Bei; Ma, Chunhui
  14. Payment decoupling and the intra-European calf trade By Prehn, Sören; Brümmer, Bernhard; Thompson, Stanley R.
  15. Practical Considerations in Using Bioeconomic Modelling for Rebuilding Fisheries By Sherry L. Larkin; Sergio Alvarez; Gil Sylvia; Michael Harte
  16. The Effects of Global Warming on Fisheries By Medel, Carlos A.
  17. Education, Migration and Source Community Incomes in Rural China By Karpestam, Peter
  18. Environmental and Climate Innovation: Limitations, Prices and Policies By Jeroen C.J.M. van den Bergh
  19. On the environmental, economic and budgetary impacts of fossil fuel prices: A dynamic general equilibrium analysis of the Portuguese case By Alfredo Marvão Pereira; Rui M. Pereira
  20. The Value of Terroir: Hedonic Estimation of Vineyard Sale Prices By Cross, Robin; Plantinga, Andrew J.; Stavins, Robert N.
  21. Identifying the water poor: an indicator approach to assessing water poverty in rural Mexico. By Fenwick, C.
  22. Carbon Emission Trading Scheme and the Aviation Sector: An experimental analysis on allocation of allowances By Anthony T H Chin; Zhang Peng
  23. Adapting to Climate Change Through Local Municipal Planning: Barriers and Opportunities By Thomas G Measham; Benjamin L Preston; Cassandra Brooke; Tim F Smith; Craig Morrison; Geoff Withycombe; Russell Gorddard
  24. Community Response to Forestry Transition in Rural Canada: Analysis of Media and Census Data for Six Case Study Communities in New Brunswick and British Columbia By Smith, Mark; Parkins, John R.
  25. Decoupling: Is there a Separate Contribution from Environmental Taxation By Muller, Adrian; Åsa, Löfgren; Thomas, Sterner
  26. Risks to Agribusiness Investment in Sub-Saharan Africa By Julie Wrobleski; Hendrik Wolff

  1. By: Katherine Killebrew; Hendrik Wolff
    Date: 2010–03
  2. By: Richardson, Robert B.
    Abstract: Food security in developing countries depends in part on the sustainable use of natural resources. Food security is usually examined through three dimensions, namely the availability, access, and utilization of food. Ecosystems directly and indirectly support each of these dimensions through the provision of critical ecosystem services that facilitate agricultural production, create income- generating opportunities, and provide energy for cooking. However, in some cases, household uses of natural resources undermine particular elements of food security, hindering national poverty reduction strategies and threatening the sustainability of critical ecosystem functions. I examine the role of ecosystem services in rural food security through the lens of its three dimensions, and highlight the tensions that stem from household-level interactions and uses. In some cases, uses of resources and services that support the access and utilization dimensions may undermine the ecosystem functions that support food availability. The conclusions underscore the importance for the integration of ecosystem services into food security plans and poverty reduction strategies in developing countries.
    Keywords: environmental sustainability, ecosystem, food security, Environmental Economics and Policy, Food Security and Poverty,
    Date: 2011–01
  3. By: Skoufias, Emmanuel; Tiwari, Sailesh; Zaman, Hassan
    Abstract: The 2008"food price crisis"and more recent spikes in food prices have led to a greater focus on policies and programs to cushion their impact on poverty and malnutrition. Estimating the income elasticity of micro-nutrients and assessing how they change during such crises is an important part of the policy debate as it affects the effectiveness of cash transfer and nutritional supplementation programs. This paper assesses these issues using data from two cross-sectional household surveys in Indonesia carried out before and soon after the 1997/98 economic crisis, which led to a sharp increase in food prices. First, the authors examine how the income elasticity of the starchy staple ratio differs between the two survey rounds using non-parametric as well as regression methods. Second, they provide updated estimates of the income elasticity for important nutrients in Indonesia. The analysis finds that (i) summary measures such as the income elasticity of the starchy staple ratio may not change during crises but this masks important differences across specific nutrients; (ii) methods matter -- the ordinary least squares estimates for the income elasticity of micro-nutrients are likely to be misleading due to measurement error bias; (iii) controlling for measurement error, the income elasticity of some key micro-nutrients, such as iron, calcium, and vitamin B1, is significantly higher in the crisis year compared with a normal year; and (iv) the income elasticity for certain micro-nutrients -- vitamin C in this case -- remains close to zero. These results suggest that cash transfer programs may be even more effective during crises to protect the consumption of many essential micro-nutrients compared with non-crisis periods but in order to ensure that all micro-nutrients are consumed, specific nutritional supplementation programs are also likely to be required.
    Keywords: Food&Beverage Industry,Nutrition,Rural Poverty Reduction,Economic Theory&Research,Inequality
    Date: 2011–01–01
  4. By: Beghin, John C.; Disdier, Anne-Celia; Marette, Stephan; van Tongeren, Frank
    Abstract: This paper provides a systematic welfare-based approach to analyze the impact of non-tariff measures (NTMs) on trade and welfare in presence of market imperfections. We focus on standard-like measures such as technical barriers and sanitary and phytosanitary regulations. The approach overcomes the shortcomings of the mainstream approach based on the analysis of forgone trade caused by trade costs. The latter ignores market imperfections: welfare increases when NTMs are removed and trade expands. We explain how to account for external effects and market failures in trade-focused welfare analysis, leading to a more balanced overall assessment of measures despite a potential reduction of trade flows. We show that the relationship between trade, welfare, and NTMs is complex. The optimum NTM is often not zero. An application to shrimp trade illustrates the feasibility of the proposed approach. The illustration shows that the reinforcement of a food safety standard can be socially preferable to the status-quo situation, both domestically and internationally
    Keywords: externality; trade; Welfare; Non-tariff measures; NTM
    JEL: D61 D62 F13 Q17
    Date: 2011–01–24
  5. By: Adamowicz, W.L. (Vic); Swait, Joffre
    Abstract: Given the large number of choices that consumers make each day it seems likely that they will generally adopt decision strategies that minimize cognitive effort, particularly with low price products such as most items found in a supermarket. One such strategy may be to simply choose what has been chosen in the past, i.e. to fall into a pattern of routine choices or decisions. In contrast, there may be preferences for variety in markets for low price, highly differentiated goods. We develop a conceptual and empirical model of routine choice, and the factors that result in transitions to two strategies other than routine selection, to wit, utility maximizing choice among available alternatives and a variety seeking strategy. The empirical approach we employ provides a mechanism for the examination of panel data that avoids the state dependence issues present in most applications to these types of data. We apply this framework to the choice of two food products that illustrate the heterogeneity across types of products in decision strategies and routine choice patterns.
    Keywords: Choice modeling, routine behavior, varietyâseeking, panel data, Consumer/Household Economics, Demand and Price Analysis, Institutional and Behavioral Economics, D12, D03, C25,
    Date: 2010
  6. By: Kimhi, Ayal; Tzur, Nitzan
    Keywords: Research Methods/ Statistical Methods,
    Date: 2011–01
  7. By: Jesse Edgerton
    Abstract: Recent years have seen large increases in the prices of houses, farm products, and oil, often with little clear connection to economic fundamentals. These price increases created plausibly exogenous shifts in demand for construction, farm, and mining machinery. This paper uses these demand shifts to estimate the elasticity of machinery supply. Graphical evidence, OLS, and IV estimates all indicate that the quantity of machinery supplied increased rapidly during the booms, with only modest increases in prices. Pooled sample estimates of the supply elasticity are around 5, much larger than the estimate of 1 from Goolsbee (1998). Results thus suggest that public policies that stimulate investment demand will have only modest effects on the prices of investment goods.
    Date: 2011
  8. By: Stéphanie Aulong; Robert Kast
    Abstract: The objectives of the paper are (1) to apply Füssels (2007) conceptual framework of vulnerability to a concrete ongoing research and (2) to discuss on the resulting choice of an adequate vulnerability approach. The research aims at assessing the vulnerability of South Indian farmers to global change at two periods of time: medium term (2030-2040) to account for rapid global economic changes, and long term (2045-2065) to account for climate change and variability. The term vulnerability is dened in so many ways that its use has become controversial. Fussel proposed an original conceptual framework of vulnerability based on a common and transversal terminology understandable whatever the scientic domain of concern. This conceptual framework relies on the description of six dimensions of the vulnerability concept. The rst four dimensions describes the vulnerable situation and the last two dimensions explain the factors of vulnerability. Füssel argues that with this set of dimensions, it is possible to class any conceptual approach of vulnerability found in the literature. After the six dimensions were adapted to South Indian farmers vulnerability, the use of a cross-scale integrated approach of vulnerability appears clearly as the most appropriate.[...]
    Date: 2011–01
  9. By: Adamowicz, W.L.; Arnot, C.; Boxall, P.; Dridi, C.; Goddard, E.; Jordan, M.; Forbes, K.; Laate, K.; Myshaniuk, K.; Parlee, B.; Petigara, M.; Unterschultz, J.; Zimmer, N.
    Abstract: This report summarizes a series of projects undertaken by staff and students in the Department of Rural Economy which examine various socio-economic aspects of chronic wasting disease and its effect on a range of stakeholders in Alberta. The four projects included exploring impacts on the cervid farming industry, hunters, the general Albertan public, and certain Aboriginal groups. General results from these studies are presented with references that provide a more thorough analysis and discussion.
    Keywords: chronic wasting disease, socio-economic impacts, aboriginals, farming industry, Livestock Production/Industries, Production Economics, Q12, Q26, Q28,
    Date: 2010
  10. By: Paul Dower (New Economic School and the Center for Economic and Financial Research); Elizabeth Potamites
    Abstract: Many land titling programs have produced lackluster results in terms of achieving access to credit for the poor. This may re ect insucient empha- sis on local banking practices. Bankers commonly use sophisticated methods other than collateral to ensure repayment. Some methods rely on ex-ante in- formation ows and formal land titles can improve these ows by signaling to the bank important characteristics about borrowers. Using a household survey from Indonesia, we provide evidence that formal land titles do have a positive and significant eect on access to credit and at least part of this effect is best interpreted as an improvement in ex-ante information ows. This result stands in contrast to the prevailing notion that land titles only function as collateral. Analysts who neglect local banking practices may misinterpret the observed effect of systematic land titling programs on credit access because these programs tend to dampen the signaling value of formal land titles.
    Date: 2010–12
  11. By: Arnaud Simon (DRM - Dauphine Recherches en Management - CNRS : UMR7088 - Université Paris Dauphine - Paris IX)
    Abstract: This study examines the impact of real estate brokers on the price of residential properties sold in 2005 in twelve French cities. The results indicate that brokers increase the prices of properties they sell even though they appear to have heterogeneous behaviours across cities. The impact of brokers also varies by property size and age of clients. One and two room apartments have higher selling prices when sold through brokers. Buyers in their thirties and forties who seek the assistance of brokers pay more for their homes whereas older sellers obtain higher prices from broker intermediation.
    Keywords: residential real estate market, broker intermediation, brokers' effect on price
    Date: 2011
  12. By: Shan Chen; Margaret Insley (Department of Economics, University of Waterloo); Tony Wirjanto (School of Accounting & Finance and the Department of Statistics & Actuarial Science, University of Waterloo)
    Abstract: This paper investigates whether convenience yield is an important factor in determining optimal decisions for a forestry investment. The Kalman filter method is used to estimate three different models of lumber prices: a mean reverting model, a simple geometric Brownian motion and the two-factor price model due to Schwartz (1997). In the latter model there are two correlated stochastic factors: spot price and convenience yield. The two-factor model is shown to provide a reasonable fit of the term structure of lumber futures prices. The impact of convenience yield on a forestry investment decision is examined using the Schwartz (1997) long-term model which transforms the two-factor price model into a single factor model with a composite price. Using the long-term model an optimal harvesting problem is analyzed, which requires the numerical solution of an impulse control problem formulated as a Hamilton-Jacobi-Bellman Variational Inequality. We compare the results for the long-term model to those from single-factor mean reverting and geometric Brownian motion models. The inclusion of convenience yield through the long-term model is found to have a significant impact on land value and optimal harvesting decisions.
    Date: 2011–01
  13. By: Nagler, Matthew G.; Kronenberg, Fredi; Kennelly, Edward J.; Jiang, Bei; Ma, Chunhui
    Abstract: Using the dietary supplement black cohosh to demonstrate our method, we employ data on a product characteristic unobservable to consumers to decompose the contribution to consumers’ valuations of observable characteristics into surrogate indicator and direct components. Because consumers are not all “expert appraisers” of the unobservable characteristic, the measured relationship of indicators to the unobservable quality is generally not the one consumers perceive. Consequently, biases that depend upon the nature of consumers’ ineptitude are introduced into the component estimation. The researcher’s inference problem is solved by recognizing that consumers with greater appraisal expertise sort disproportionately to higher quality products. This enables feasible measurement of inept consumers’ relative valuations and conjectures through separate hedonic estimation on high- and low-quality product subsamples. We find that, relative to experts, inept consumers likely underestimate the value of most observable characteristics in indicating black cohosh product authenticity; however they overweight online product ratings.
    Keywords: hedonic analysis; surrogate indicators; asymmetric information; pricing strategy; product strategy
    JEL: D12 D83 L15
    Date: 2010–10–08
  14. By: Prehn, Sören; Brümmer, Bernhard; Thompson, Stanley R.
    Abstract: The 2003 reforms of the Common Agricultural policy of the European Union introduced decoupled income transfers as the most prominent policy instrument. However, member states were given substantial discretion over the degree and timing of the reform implementation. As a result, different implementation schemes coexist within the EU, keeping certain parts of the income support coupled to current production levels. This coexistence leads to distortions of production incentives, factor misallocations, and artificial trade flows. Here, we examine these effects in the beef sector where full decoupling was not obligatory for all member states. Based on a cost minimization framework, we derive a sector-specific trade model with heterogeneous firms and quality differences. The model is used to examine the effects of different implementation schemes on intra-European calf trade. Empirical results confirm that the expected distortions to trade flows occured, violating the fundamental CAP principle of Market Unity. --
    Keywords: 2003 CAP Reform,Partial Decoupling,Intra-European Calf Trade,Gravity Model,Heterogeneous Firms Trade Model
    JEL: F13 F14 Q17
    Date: 2010
  15. By: Sherry L. Larkin; Sergio Alvarez; Gil Sylvia; Michael Harte
    Abstract: Many of the world.s fish stocks are considered to be in need of rebuilding. In response, global agreements, including UNCLOS, have sought to adopt some (optimal) level of fish biomass, usually the level associated with the maximum sustainable yield (MSY). While establishing a sustainable level of harvest is goal with intuitive appeal, the pursuit of MSY ignores many relevant economic and social factors that are critical to the sustainability of a fishery.
    Keywords: Fisheries Rebuilding, Fisheries Economics, Fisheries management, Bioeconomic Modelling, Striped bass, Northern Prawns, North Atlantic Cod, Spiny Lobster, Norwegian Spring Spawning Herring
    JEL: Q22 Q27
    Date: 2011–01–21
  16. By: Medel, Carlos A.
    Abstract: This paper develops two fisheries models in order to estimate the effect of global warming (GW) on firm value. GW is defined as an increase in the average temperature of the earth's surface because of CO₂ emissions. It is assumed that (i) GW exists, and (ii) higher temperatures negatively affect biomass. The literature on biology and GW supporting these two crucial assumptions is reviewed. The main argument presented is that temperature increase has two effects on biomass, both of which have an impact on firm value. First, higher temperatures cause biomass to oscillate. To measure the effect of biomass oscillation on firm value Pindyck's (1984) model is modified to include water temperature as a variable. The results indicate that a 1 to 20% variation in biomass causes firm value to fall from 6 to 44%, respectively. Second, higher temperatures reduce biomass, and a modification of the Smith's (1968) model reveals that an increase in temperature anomaly between +1 and +8°C causes fishery's value to decrease by 8 to 10%.
    Keywords: fisheries; fisheries economics; global warming; climate change
    JEL: Q22 Q54
    Date: 2011–01–24
  17. By: Karpestam, Peter (Department of Economics, Lund University)
    Abstract: Residents in rural China doubt the benefits from education, yet there is empirical evidence supporting positive effects in urban and rural areas. This paper investigates whether education affects a variety of income attainment indicators for households in rural China, using a household survey from the provinces of Hebei and Liaoning. The analysis estimates education effects for household residents, but also for temporary migrants (rural-urban migrants) and children who have moved permanently (rural-rural migrants). This can help to answer a set of three related questions: 1) Does household welfare in rural China depend on education? 2) Is the effect of education contingent on the decision to migrate? and 3) Does education have dissimilar effect for rural-urban and rural-rural migrants? The results support that education has positive income effects and that migration yields no additional payoffs. However, there is no evidence that households benefit from higher education if migration is only temporary. Altogether, this signals positive payoffs of educational expenses to rural households but households which consider sending a migrant into the urban labor force are better off if the more educated stay at home.
    Keywords: East Asia; China; Education; Migration; Remittances; Non-Farm Incomes;
    JEL: D13 F24 I20 J60 R23
    Date: 2011–01–18
  18. By: Jeroen C.J.M. van den Bergh
    Abstract: There is currently much hope about environmental innovation and green technologies, notably as a response to the threat of climate change. This paper offers a critical perspective on the role of technological innovation to solving environmental problems, based on considering empirical economic studies, energy and environmental rebound, the energy return on energy investment (EROEI) of alternative energy technologies, and various crowding out effects. Features of green technologies and motives of green innovators are briefly discussed. This is followed by an examination of the desirable mix of environmental and innovation policies to stimulate environmental innovation, to escape current and to evade early new lock-ins, and to avoid the occurrence of a “green paradoxâ€. This involves an evaluation of specific policy instruments from an environmental innovation angle. An extended argument is offered to clarify that environmental (CO2) pricing is crucial – even though insufficient – for environmental innovation to deliver definite solutions. In other words, environmental innovation (policy) is no substitute for environmental regulation (through prices). The paper also discusses the importance for environmental innovation of international agreements for regulation of greenhouse gas emissions and international coordination of innovation efforts.
    Keywords: climate change; environmental regulation; EROEI; green paradox; rebound; sustainability transition; technological diversity Length 25 pages
    Date: 2011–01
  19. By: Alfredo Marvão Pereira (Department of Economics, The College of William and Mary); Rui M. Pereira (Department of Economics, University of the Algarve)
    Abstract: This paper examines the environmental, economic and budgetary impacts of fuel prices using a dynamic general equilibrium model of the Portuguese economy which highlights the mechanisms of endogenous growth and includes a detailed modeling of the public sector. The fuel price scenarios are based on forecasts by the DOE-US, the IEA-OECD and IHS Global Insight Inc., and represent a wide range of projections for absolute and relative fossil fuel prices. The dramatic differences in relative prices lead to substantially different environmental impacts. Our results suggest that higher fuel prices in the DOE-US scenario would lead to a reduction in emissions that account for 10.2% of the implicit emissions deficit for EU 2020 emissions targets, while relative price changes, led by lower prices for coal, result in a 19.2% increase for the IEA-OECD scenario. Under the IHS scenario, declining fuel prices would increase the emissions deficit by 95.9%. In terms of the long term economic impact, our results suggest a 2.2% drop in GDP in the DOE-US scenario and of 1.9% in the IEA-OECD scenario and an increase of 1.4% in the IHS scenario, which reflect the absolute change in energy costs. As to the budgetary impact, higher fuel prices lead to lower tax revenues, which, coupled with a reduction in public spending translates to lower public deficits. In addition, and from a methodological perspective, our results highlight the importance of endogenous growth mechanisms. A scenario of higher fuel prices would, under exogenous economic growth assumptions, result in larger baseline emissions growth scenarios, substantially smaller economic effects, and rather different budgetary effects. Finally, and from a policy perspective, our results highlight the impact of fossil fuel prices in defining the level of policy intervention required for compliance with international and domestic climate change legislation. As a corollary, we argue that it is critical for both international comparisons and international policy negotiations to define baseline emission targets in function of steady state economic projections under stable price assumptions.
    Keywords: Fuel Prices, Endogenous Growth, Budgetary Consolidation, Climate Policy, Dynamic
    JEL: Q40 Q43 Q54 C68 D58 H50 H68
    Date: 2011–01–23
  20. By: Cross, Robin (Oregon State University); Plantinga, Andrew J. (Oregon State University); Stavins, Robert N. (Harvard University)
    Abstract: We examine the value of terroir, which refers to the special characteristics of a place that impart unique qualities to the wine produced. We do this by conducting a hedonic analysis of vineyard sales in the Willamette Valley of Oregon to ascertain whether site attributes, such as slope, aspect, elevation, and soil types, or designated appellations are more important determinants of price. We find that prices are strongly determined by sub-AVA appellation designations, but not by specific site attributes. These results indicate that the concept of terroir matters economically, although the reality of terroir--as proxied for by locational attributes--is not significant.
    JEL: C20 Q11
    Date: 2011–01
  21. By: Fenwick, C.
    Abstract: Water scarcity is the focus of considerable research emphasizing the vulnerability of communities to physical water supply. Recent approaches to the determination of water scarcity that incorporate social, economic and political factors with physical measures of water availability include the Water Poverty Index (WPI). Through a rigorous analysis that aims to analyze and contrast the results of the WPI with those determined through extensive fieldwork and community consultation, this research aims to fulfil the following core objectives: 1. to determine the impact of scale on water poverty assessments; 2. to test the robustness of the WPI and validate its accuracy as a measurement of water poverty; 3. to assess the ability of the WPI to accurately reflect local perceptions of water poverty. Mexico has an astounding array of water challenges where even areas with a natural abundance of water face difficulties in the provision of water supply. Particularly compelling is the region of Los Altos. Situated within Mexico's most water-rich state, access to water is exceptionally constrained. This contrast of scale was the incentive for selecting the rural communities of Pozuelos and El Mash to examine water poverty in detail. A careful examination of water poverty was first undertaken at the state level. Next, water poverty was assessed in the community through an extensive field study, comprising a thorough assessment of infrastructure, water quality analyses, researcher observations, informal interviews and participatory focus groups. These data provided the basis for calculating the WPI at the community scale. Analyses were then undertaken focusing on statistical correlations using Pearson's product moment correlation coefficient informed by researcher observations, regression analyses and community perceptions. As the only indicator to assess the multiple dimensions of water poverty, the WPI, by definition, is the best tool available. However, the issue of scale continues to be challenging whilst predictions of water poverty are complex and marred by subjectivity. A lack of consensus surrounding appropriate variables is problematic and inhibits comparisons across localities. Community perceptions of water poverty at the community level differ from results obtained using the WPI further questioning its reliability. Notwithstanding, the WPI highlights the need for a multi-dimensional approach to the determination of water poverty by demonstrating the lack of relationship between water resources availability and overall water poverty across scales. However, this research has demonstrated the complex nature of the WPI rendering its application in practice quite difficult.
    Date: 2010–12–28
  22. By: Anthony T H Chin (Department of Economics, National University of Singapore); Zhang Peng (Department of Economics, National University of Singapore)
    Abstract: The European Union has proposed a Directive to include aviation activities in the Emission Trading Scheme (ETS) in 2012. The allowance allocation method which will be put in place is relatively easy to implement with low administration cost. However, careful scrutiny suggests that the allocation method does not favor airlines with high energy efficiency. This study proposes an alternative allowance allocation method which is fairer in that it rewards energy efficient airlines. Further, the new method is easy to implement with low administrative cost. The Cournot model serves as the theoretical foundation upon which the experiments are designed to simulate the aviation industry under the ETS. The equilibrium is calculated for each allowance allocation method. Results from experiments suggest consistency with theoretical outcomes.
    Date: 2011–01
  23. By: Thomas G Measham; Benjamin L Preston; Cassandra Brooke; Tim F Smith; Craig Morrison; Geoff Withycombe; Russell Gorddard (CSIRO Ecosystem Sciences, Australia)
    Abstract: Municipal planning represents a major avenue for achieving adaptation at local and regional scales, however significant constraints need to be acknowledged and addressed if adaptation is likely to advance through this mechanism. This paper considers the role of municipal (local government) planning and in particular the key constraints which currently limit this avenue for adaptation. The paper reviews the constraints recognised in the adaptation literature including lack of information, institutional limitations and lack of resources. We further identify additional constraints which affect local government planning drawing on the field of community-based environmental planning. In relating these constraints to practical attempts towards adaptation, the paper considers planning based on a case study of three municipalities in Sydney, Australia. In doing so, we draw attention to factors thus far under-acknowledged in the climate adaptation literature. These include leadership, institutional context and competing planning agendas. These factors can serve as constraints or enabling mechanisms for achieving climate adaptation depending upon how they are exploited in any given situation. The paper concludes that, through addressing these issues, local, place-based planning can play a greater role in achieving climate adaptation
    Keywords: institutional capacity, place-based planning, community engagement
    JEL: Q54 P48
    Date: 2010–12
  24. By: Smith, Mark; Parkins, John R.
    Abstract: The forest economy is in transition across Canada. Faced with high dollar values, increasing competition within the global market, high input costs for energy, labour and fibre, and growing expectations for environmental performance, the forest sector is undergoing significant economic transitions as companies across the country cut costs, close mills and shed jobs. This report contributes to our understanding of community response to mill closure with a detailed description of six case study communities during a period of forest industry mill closures. Three communities are in British Columbia (Mackenzie, Quesnel and Fort St. James) and three communities are in New Brunswick (Dalhousie, Nackawic and Mirimachi). Empirical information is derived from national and local media reports as well as recent data from the Census of Canada. Key thematic areas include resilience, economic diversification, the nature of mill closure, union involvement, government involvement and concerns over government policy changes such as appurtenancy.
    Keywords: media analysis, rural sociology, community development, rural development, social change, Community/Rural/Urban Development, R52, R58, Q33,
    Date: 2011–01
  25. By: Muller, Adrian (Socioeconomic Institute University of Zurich, Switzerland); Åsa, Löfgren (Department of Economics, School of Business, Economics and Law, Göteborg University); Thomas, Sterner (Department of Economics, School of Business, Economics and Law, Göteborg University)
    Abstract: Decoupling is a crucial topic in the analysis of sustainable development. Without decoupling, continuing and increasing economic growth in developed and developing countries would come with ever increasing environmental pressures, unavoidably destroying the carrying capacity of ecosystems with corresponding detrimental effects on the environment and societies. The prime example today is climate change. If we do not succeed in drastically decoupling greenhouse gas emissions from economic growth, the mitigation goals necessary to avoid catastrophic impacts will never be reached. Due to this importance of decoupling, it is thus essential to know how different policy instruments may support its achievement. The aim of this paper is to address the question whether there is a separate contribution from environmental taxation to decoupling and to offer researchers some guidance on how to optimally address this question.<p>
    Keywords: decoupling; environmental taxation; pollution
    JEL: O40 Q50 Q58
    Date: 2011–01–26
  26. By: Julie Wrobleski; Hendrik Wolff
    Date: 2010–02

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