nep-env New Economics Papers
on Environmental Economics
Issue of 2005‒07‒03
eighteen papers chosen by
Francisco S.Ramos
Federal University of Pernambuco

  1. Sierra Nevada de Santa Marta: Economía de sus recursos naturales By Joaquín Viloria De La Hoz
  2. Meeting MDBC River Salinity Targets in South Australia. By Jeffery Connor
  3. Systematic Regional Planning for Multiple Objective Natural Resource Management. A Case Study in the South Australian River Murray Corridor. By Brett Bryan; Jeffery Connor; John Ward
  4. Multicriteria evaluation and local environmental planning for sustainable tourism By De Montis, Andrea; Deplano, Giancarlo; Nijkamp, Peter
  5. Improving child nutrition for sustainable poverty reduction in Africa By Alderman, Harold; Behrman, Jere R.; Hoddinott, John
  6. Sustainable agricultural development strategies in fragile lands. By Scherr, Sara J.; Hazell, Peter B. R.
  7. Ecological risks of novel environmental crop technologies using phytoremediation as an example By Angle, J. Scott; Linacre, Nicholas A.
  9. The Incidence of Pollution Control Policies By Ian W.H. Parry; Hilary Sigman; Margaret Walls; Roberton C. Williams III
  10. The Indian Ocean Tsunami: Economic Impact, Disaster Management and Lessons By Prema-chandra Athukorala; Budy P. Resosudarmo
  11. Can Consumers Enforce Environmental Regulations? The Role of the Market in Hazardous Waste Compliance By Sarah L. Stafford
  12. Crop Substitution on UK Sugar Beet Farms and its Effects on the Environment: A Multi-Product Cost Function Approach By Cesar L. Revoredo Giha; Alan W. Renwick
  13. Using a Choice Experiment to Estimate the Demand of Hungarian Farmers for Food Security and Agrobiodiversity During Economic Transition By Ekin Birol; Andreas Kontoleon; Melinda Smale
  14. Environmental Risk and Averting Behavior: Predictive Validity of Revealed and Stated Preference Data By John C. Whitehead
  15. A Dynamic Model of the Environmental Kuznets Curve : Turning Point and Public Poliy By Hannes Egli; Thomas M. Steger
  16. Innovative investments, natural resources, and intergenerational fairness : are pension funds good for sustainable development? By Lucas Bretschger; Karen Pittel
  17. Endogenous growth and recycling : a material balance approach By Karen Pittel; Amigues Jean-Pierre; Thomas Kuhn
  18. A new approach to pollution modelling in models of the environmental Kuznets curve By Hannes Egli

  1. By: Joaquín Viloria De La Hoz
    Abstract: La La Sierra Nevada de Santa Marta es una subregión estratégica para el Caribe colombiano, en la medida en que es la principal fuente de agua para tres de sus departamentos. Los ríos que nacen en la Sierra Nevada producen más de 10.000 millones de metros cúbicos de agua por año, de los cuales una parte se convierte en fuente de agua para 1.5 millones de personas. Las cuencas forman en la parte plana y circunvecina de la Sierra, valles aluviales que en conjunto suman más de 280.000 hectáreas de fértiles tierras. A partir del indicador de índice de aridez se pudo establecer que en la Sierra Nevada se cuenta con una aceptable disponibilidad de agua, pero así mismo se presenta una alta presión sobre sus cuencas. Estas presiones sobre las cuencas hidrográficas se intensificaron durante el siglo XX, con las diferentes olas colonizadoras que se presentaron en la Sierra. Desde la década de 1970 la inseguridad fue creciente en el macizo montañoso, con la presencia de cultivos ilícitos y grupos armados ilegales. En los primeros años del siglo XXI, las condiciones de seguridad han mejorado, lo que ha permitido que agricultores y campesinos regresen a sus propiedades rurales. Por el contrario, la seguridad de los indígenas se ha visto afectada, toda vez que parte de su territorio ha sido invadido por actores armados ilegales. En este sentido, todavía el monopolio de las armas no reposa en el Estado, ya que siguen existiendo grupos que amenazan la estabilidad de la subregión. Al garantizar las condiciones de seguridad, se lograría promocionar a la Sierra Nevada de Santa Marta como destino internacional del ecoturismo y turismo cultural. Así mismo, se aumentaría su producción de café, cacao, miel y frutas orgánicas, entre otros productos, de amplia demanda en el mercado internacional.
    Keywords: Sierra Nevada de Santa Marta,
    JEL: Q00
    Date: 2005–07–31
  2. By: Jeffery Connor (Policy and Economics Research Unit,CSIRO Land and Water)
    Abstract: Prepared for 4th Biennial MDBC Groundwater Workshop, February 17-19 2004, Bendigo Victoria.
    Keywords: Australia;salinity;environmental management
    JEL: Q0 Q1 Q2
    Date: 2004–02
  3. By: Brett Bryan (Policy and Economics Research Unit,CSIRO Land and Water); Jeffery Connor (Policy and Economics Research Unit,CSIRO Land and Water); John Ward (Policy and Economics Research Unit,CSIRO Land and Water)
    Abstract: The aim of this study is to assess the feasibility of different policy options for encouraging the large scale NRM actions required for achieving stated regional resource condition targets for NRM. To achieve this, the concept of systematic regional planning is developed to identify geographic priorities for NRM actions that most cost effectively meet multiple-objective regional targets based on established biophysical and economic principles.
    Keywords: Water;Australia;Rivers;Biodiversity;Natural Resource Management;Revegetation
    JEL: Q0 Q1 Q2
    Date: 2005–03
  4. By: De Montis, Andrea (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics); Deplano, Giancarlo; Nijkamp, Peter
    Abstract: Within the framework of the certification for the environmental management system (EMS) and its total quality (i.e. ISO 14001 and VISION 2000), methodologies and research focus on innovative models for sustainable and environmentally-sound tourism. The complexity of these concepts requires the assessment of analytical schemes able to tackle conflicting situations and the subjectivity of political decisions. Thus, this paper provides insights into decision-making for a hypothetical institutional body interested in developing an objective standardized procedure for evaluating the spatial dimension of sustainable tourist development. The methodology assessed belongs to the family of multicriteria tools and is developed by the integration of the Regime method (Hinloopen and Nijkamp, 1990) with the AHP method (Saaty, 1988). The high volatility of the results is studied by means of sensitivity analysis and this leads to further reflections on the requirements of an Internet-based evaluation and learning process, grounded in a remote access debate among the stakeholders.
    Keywords: Multicriteria analysis; Sustainable tourism; Environmental planning
    Date: 2004
  5. By: Alderman, Harold; Behrman, Jere R.; Hoddinott, John
    Abstract: "While famines and other episodes of severe hunger receive significant press coverage and attract much public attention, chronic hunger and malnutrition are considerably more prevalent in Africa. It is estimated that 14 percent of children are born with low birthweights every year, around 45 million preschool children are malnourished, and 192 million Africans of all ages are hungry.... This brief argues that failing to give adequate attention to child nutrition issues is shortsighted if African governments seek sustainable reductions in poverty. In poorly nourished populations, reductions in hunger and improvements in nutrition provide considerable productivity gains and save resources that can then be used for other pressing investments. It is the existence of these sizeable gains together with the availability of cost-effective interventions that underlies the economic case for improving child nutrition in Africa." from Text
    Date: 2004
  6. By: Scherr, Sara J.; Hazell, Peter B. R.
    Abstract: Current trends in demography, agricultural production and rural environment in the developing countries suggest that so-called "marginal lands" must play a larger and probably growing role in food supply and economic development for the foreseeable future. To fulfill this critical role, public policy towards these lands needs to be revised. A key policy focus should be to strengthen incentives for local land users to not only maintain, but to improve the natural resource base for food and fiber supply. Such "land-improving investments" are needed to reduce production and subsistence risks and permit more intensive use without degradation. Under population and market pressure, one can expect an endogenous process of intensification, through land improvements, tenurial and institutional changes and "re-ordering" of the landscape. But this process is not automatic. Factors influencing the pace and scale of land transformation include: farmer knowledge of degradation of the degrading resource; incentives for long-term investment; capacity to mobilize resources for land investment; level of economic returns to such investment; and factors affecting the formation and function of local groups to help mobilize resources and coordinate landscape-level change. Current policies often work to constrain, rather than support, this process. New research is needed to support policy change for "marginal" lands.
    Keywords: Land use Economic aspects. ,Investments. ,EPTD ,
  7. By: Angle, J. Scott; Linacre, Nicholas A.
    Abstract: "Phytoremediation is the use of living plants, known as hyperaccumulators which absorb unusually large amounts of metals in comparison to other plants. The use of classical plant breeding and new molecular techniques offers great potential to develop crops with the ability to clean up polluted sites. While these technologies have gained widespread attention, prior to commercial development, there are risks that must be considered – only a few of which have received even modest examination. Therefore, the focus of this working paper is to explore specific risks associated with phytoremediation and suggest ways in which these risks can be managed so that new, novel, and innovative plant technologies may be applied to provide low cost and efficient environmental solutions. " Authors' Abstract
    Keywords: Phytoextraction ,Phytomining ,
    Date: 2005
  8. By: Kadri Ukrainski; Urmas Varblane
    Abstract: The paper aims to identify the role of different sources of innovation for the Estonian wood sector. Comparing data from survey of Innovation in Estonian Enterprises 1998 2000 with similar Finnish data reveals that linkages in Estonian forest and wood cluster are relatively weaker regarding innovation sources. Universities and research institutes are the weakest part identified in the knowledge flows of the emerging Estonian wood cluster. Technological capabilities of Estonian wood and forest industries have passed the absorption phase and entered the adoption phase, but still the absorptive capacities remain relatively low, as indicated by the high importance of internal innovation sources and the low intensity of using R&D institutions and universities as innovation sources. We applied binary logit model in order to identify the role of different sources of innovation for the Estonian wood sector. Suppliers are the most significant partner for innovation cooperation and also the second innovation source after internal sources. Customers are more used for innovative products and by those companies that lack knowledge about markets. The internal information of concerns is not diffused to other firms. The future development of the Estonian forest and wood cluster should be oriented towards the development of high end production capacities in the value network. This requires joint efforts of the government and industries, as well as collaboration oriented behaviour of Estonian companies.
    Date: 2005
  9. By: Ian W.H. Parry; Hilary Sigman; Margaret Walls; Roberton C. Williams III
    Abstract: This paper reviews theoretical and empirical literature on the household distribution of the costs and benefits of pollution control policies, and ways of integrating distributional issues into environmental cost/benefit analysis. Most studies find that policy costs fall disproportionately on poorer groups, though this is less pronounced when lifetime income is used, and policies affect prices of inputs used pervasively across the economy. The policy instrument itself is also critical; freely allocated emission permits may hurt the poor the most, as they transfer income to shareholders via scarcity rents created by higher prices, while emissions taxes offer opportunities for progressive revenue recycling. And although low-income households appear to bear a disproportionate share of environmental risks, policies that reduce risks are not always progressive, for example, they may alter property values in ways that benefit the wealthy. The review concludes by noting a number of areas where future research is badly needed.
    JEL: Q52 H23 H22
    Date: 2005–06
  10. By: Prema-chandra Athukorala; Budy P. Resosudarmo
    Abstract: The purpose of this paper is to document and analyze the immediate economic impact of the Indian Ocean tsunami generated by the Sumatra-Andaman earthquake of 26 December 2004 and the disaster management process in the immediate aftermath of the disaster with a focus on the two worst affected countries - Indonesia (Aceh province) and Sri Lanka. The 26 December Tsunami is unique among large disasters in recorded human history, not only because of the sheer number of causalities and massive displacement of people, but also because of the unprecedented international donor response and the logistic challenges faced by international organizations and aid agencies in organizing and coordinating relief efforts. Our preliminary findings points to the importance of educating the public about simple precautions in the event of a disaster and enforcement of coastal environmental regulations as disaster prevention policies. The findings also makes a strong case for designing policies and programs, as an integral part of national development strategy, for mitigating the impact of natural disasters on the poor and highlights the need for combining international aid commitments with innovative approaches to redressing problems of limited aid absorptive capacity in disaster affected countries.
    Keywords: tsunami, disaster management, Indonesia, Sri Lanka Length (pages): 56
    JEL: I32 O53 Q54
    Date: 2005–05
  11. By: Sarah L. Stafford (Department of Economics, College of William and Mary)
    Abstract: To assess the role that consumers can play in encouraging environmental compliance, we examine the U.S. hazardous waste management industry to determine (1) whether environmental performance affects consumer demand and (2) whether markets affect compliance behavior. We find that noncompliance does decrease demand, at least in the short-term. While we do not find any evidence that market size affects compliance, local competition does appear to increase compliance. However, as competition becomes less localized, it has a smaller, if any, effect. Finally, regardless of the pressures exerted by consumers to comply, commercial managers are more likely to violate than on-site managers.
    Keywords: : Commercial Environmentalism, Compliance, Enforcement, Hazardous Waste, Market Size, Competition
    JEL: Q28 K42 D21
    Date: 2005–06–28
  12. By: Cesar L. Revoredo Giha (Department of Land Economy, University of Cambridge, UK); Alan W. Renwick (Scottish Agricultural College)
    Abstract: This paper analyzes the effect that the imminent reform of the EU sugar beet regime will have on United Kingdom (UK) sugar beet farms. Specifically, we estimate a multi-product cost function to analyze the effect the changes on the sugar beet price support and quota will have on the crop allocation of sugar beet farms and their aggregate use of inputs. Based on these estimates we discuss the implications that changes in the crop patterns may have on farm environmental variables such as soil loss and groundwater pollution.
    Keywords: Multi-product cost function, UK sugar beet production, CAP reform
    Date: 2005–06
  13. By: Ekin Birol (Homerton College, University of Cambridge, UK); Andreas Kontoleon (Department of Land Economy, University of Cambridge, UK); Melinda Smale (International Food Policy Research Institute, Washington DC, USA and International Plant Genetic Resources Institute, Rome, Italy)
    Abstract: Hungarian home gardens are small farms that are repositories of agrobiodiversity and provide food security during economic transition. We use a choice experiment to test the hypothesis that farmer demand for home gardens will decrease as markets develop with European Union accession. Data represent 22 communities with varying levels of market and social infrastructure. We find that farmers located in more economically developed communities choose to be less dependent on small farms for food and prefer lower levels of agrobiodiversity. Findings indicate that the survival of small farms is jeopardized by economic change, but point to some conservation policy options.
    Keywords: food security, agrobiodiversity, home gardens, choice experiment, multi-functional agriculture
    Date: 2005–06
  14. By: John C. Whitehead (Appalachian State University)
    Abstract: We conduct predictive validity tests using revealed and stated behavior data from a panel survey of North Carolina coastal households. The application is to hurricane evacuation behavior. Data was initially collected after Hurricane Bonnie led to hurricane evacuations in North Carolina in 1998. Respondents were asked for their behavioral intentions if a hurricane threatened the North Carolina coast during the 1999 hurricane season. Following Hurricanes Dennis and Floyd in 1999, a follow-up survey was conducted to see if respondents behaved as they intended. A jointly estimated revealed and stated behavior model indicates that the hypothetical and real evacuation behavior is based on the same choice process. Using predictions from this model with a hypothetical bias correction we find that it predicts actual evacuation behavior with small forecast error. These results suggest that stated behavior data has some degree of predictive validity.
    Date: 2004
  15. By: Hannes Egli (Institute of Economic Research (WIF), Swiss Federal Institute of Technology Zurich (ETH)); Thomas M. Steger (Institute of Economic Research (WIF), Swiss Federal Institute of Technology Zurich (ETH))
    Abstract: We set up a simple dynamic macroeconomic model with (i) polluting consump- tion and a preference for a clean environment, (ii) increasing returns in abate- ment giving rise to an EKC and (iii) sustained growth resulting from a linear final-output technology. The model captures two sorts of market failures caused by external effects associated with consumption and environmental effort. This model is employed to investigate the determinants of the turning point and the (relative) effectiveness of different public policy measures aimed at a reduction of the environmental burden. Moreover, the model offers a potential explana- tion of an N-shaped pollution-income relation. Finally, it is shown that the model is compatible with most empirical regularities on economic growth and the environment.
    Keywords: Environmental Kuznets Curve, Pollution, Abatement, External Ef- fects, Economic Growth, Public Policy
    JEL: Q5 O4
    Date: 2005–05
  16. By: Lucas Bretschger (Institute of Economic Research (WIF), Swiss Federal Institute of Technology Zurich (ETH)); Karen Pittel (Institute of Economic Research (WIF), Swiss Federal Institute of Technology Zurich (ETH))
    Abstract: We analyse long-term consumption paths in a dynamic two-sector economy with overlapping generations. Each young generation saves for the retirement age, both with private savings and pension funds. The productivity of each sector can be raised by sector-specific research while the essential use of a non-renewable natural resource poses a threat to consumption possibilities in the long run. Bonds, the two types innovations, and resource stocks are the different investment opportunities. We show that pension funds have a positive impact on long-term development, provided that individuals have a preference for own investments. In this case, sustainability is more likely to be achieved due to pension fund savings.
    Keywords: Pension funds, sustainable development, financial investments, overlapping generations
    JEL: O4 Q01 Q3 G23
    Date: 2005–02
  17. By: Karen Pittel (Institute of Economic Research (WIF), Swiss Federal Institute of Technology Zurich (ETH)); Amigues Jean-Pierre (INRA. University of Toulouse, Toulouse, France); Thomas Kuhn (Department of Economics, Chemnitz University of Technology, Germany)
    Abstract: In this paper we analyze the importance of recycling in the strive for sustainable development. In contrast to former approaches we emphasize the role of the waste stock as a source of valuable inputs. We enhance a Romer (1990) type endogenous growth model by a material balance condition that re°ects the circulation of matter in the economy. Di®erentiated intermediate products are produced from recycled waste and virgin resources. These material intermediates are then employed in the production of ¯nal output. They either end up as waste after consumption or are bound in the capital stock { depending on the utilization of the produced output. We show that, even in the absence of environmental policy, long-run development is sustainable in this economy. The intuition is, that, as waste is a valuable resource in our model, not recycling part of it, cannot be optimal in the long-run.
    Keywords: non-renewable resources, recycling, endogenous growth, sustainable development
    JEL: O41 Q01 Q3 Q53
    Date: 2005–02
  18. By: Hannes Egli (Institute of Economic Research (WIF), Swiss Federal Institute of Technology Zurich (ETH))
    Abstract: Models of the Environmental Kuznets Curve, particularly those with an ex- plicit abatement technology, often involve that pollution becomes negative in the long run. This, of course, is a highly implausible prediction. The paper at hand examines the problem of negative pollution by, ¯rst, critically discussing two approaches adopted in existing EKC models and, second, by proposing a new approach. Motivated by the debatable assumption of perpetually increas- ing returns to scale in abatement, the idea of fading increasing returns to scale is introduced. This procedure does not only constitute a solution to the theo- retical problem of negative pollution, but also does well regarding the empirical plausibility of the abatement technology.
    Keywords: environmental Kuznets curve, negative pollution, abatement technology, increasing returns to scale
    JEL: Q2 Q5
    Date: 2005–05

This nep-env issue is ©2005 by Francisco S.Ramos. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.