nep-env New Economics Papers
on Environmental Economics
Issue of 2006‒03‒25
twenty-one papers chosen by
Francisco S.Ramos
Federal University of Pernambuco

  1. Pollution Haven Hypothesis or Factor Endowment Hypothesis: Theory and Empirical Examination for the US and China By Umed Temurshoev
  2. Congestion at locks on inland waterways: An experimental Testbed of a policy of tradable priority permits for lock access By Cook, Joseph; Plott, Charles R.
  3. Cooperation, stability and self-enforcement in interational environmental agreements : a conceptual discussion By Henry, TULKENS; Parkash, CHANDER
  4. Habit in Pollution. A Challenge for Intergenerational Equity By Ingmar, SCHUMACHER; Benteng, ZOU
  5. On Intertemporal Dependent Preferences with regard Environmental Goods and Services By José Manuel Madeira Belbute
  6. On the Demand of Environmental Goods with Intertemporally Dependent Preferences By José Manuel Madeira Belbute
  7. Identifying the drivers of sustainable rural growth and poverty reduction in Honduras By Jansen, Hans G.P.; Siegel, Paul B.; Pichón, Francisco
  8. Analysis for biotechnology innovations using Strategic Environmental Assessment (SEA) By Linacre, Nicholas A.; Gaskell, Joanne; Rosegrant, Mark W.; Falck-Zepeda, Jose; Quemada, Hector; Halsey, Mark; Birner, Regina
  9. Impact of global warming on Chinese wheat productivity By You, Liangzhi; Rosegrant, Mark W.; Fang, Cheng; Wood, Stanley
  10. Between conservationism, eco-populism and developmentalism By Wittmer, Heidi; Birner, Regina
  11. Localizing demand and supply of environmental services By Swallow, Brent; Meinzen-Dick, Ruth; van Noordwijk, Meine
  12. Local sustainable development and well-being/quality of life. An application of the capability approach at regional level By Alba Distaso
  13. Les réseaux du secteur bois en Inde du Sud : du local au global By Jean-Marc Roda; Philippe Cadène
  14. Le teck javanais : de l’exploitation illégale au boycott dramatique By Philippe Guizol; Jean-Marc Roda; Dwi R. Muhtaman; Pierre Laburthe; Swan Fauveaud; Martine Antona
  15. Community forestry in Tanimbar, and industrial prospective scenarios By Jean-Marc Roda; Shantiko Bayuni
  16. Faisabilité économique du parquet massif de Chêne vert By Jean-Marc Roda; Jean Gérard; Cédric Gorse
  17. Market analysis for Acrean timbers By Jean-Marc Roda
  18. Bois et développement des pays tropicaux By Jean-Marc Roda
  19. Investment Decisions and Emissions Reductions:Results from Experiments in Emissions Trading By L. Gangadharan; A. Farrell; R. Croson
  20. Carbon Taxation, Prices and Welfare in New Zealand By John Creedy; Catherine Sleeman
  21. Managing the Risks of Climate Thresholds: Uncertainties and Information Needs By Klaus Keller; Gary Yohe; Michael Schlesinger

  1. By: Umed Temurshoev
    Abstract: This paper examines how free international trade affects the environment in the developed and less developed worlds. Using input-output techniques, tests of the pollution haven hypothesis (PHH) and the factor endowment hypothesis (FEH) for the US and China were empirically carried out. We found that China gains and the US lose in terms of CO2, SO2 and NOx emissions from increased trade, and the US is not exporting capital intensive goods. Thus both the PHH and the FEH are rejected, which implies that explaining the trade of pollutants remains an unresolved puzzle.
    Keywords: International trade, Environment, Pollution haven, Factor endowment, Inputoutput analysis.
    JEL: F18 Q32 D57
    Date: 2006–03
  2. By: Cook, Joseph; Plott, Charles R.
    Date: 2005–11
  3. By: Henry, TULKENS (UNIVERSITE CATHOLIQUE DE LOUVAIN, Department of Economics); Parkash, CHANDER (National University of Singapore)
    Abstract: In essence, any international environmental agreement (IEA) imples cooperation of a form or another; The paper seeks for logical foundations of this. It first deals with how the need for cooperation derives from the public good aspect of the externalities involved, as well as with where the source of cooperation lies in cooperative game theory. In either case, the quest for efficiency is claimed to be at the root of cooperation. Next, cooperation is considered from the point of view of stability. After recalling the two competing concepts of stability in use in the IEA literature, new insights on the nature of the gamma core in general are given as well as of the Chandler-Tulkens solution within the gamma core. Free riding is also evaluated in relation with the alternative forms of stability under scrutiny. Finally, it is asked whether with the often mentioned virtue of “self enforcement” any conceptual gain is achieved, different from what is meant by efficiency and stability. A skeptical answer is offered, as a reply to Barret’s (2003) attempt at giving the notion a specific content.
    Date: 2005–07–15
  4. By: Ingmar, SCHUMACHER (UNIVERSITE CATHOLIQUE DE LOUVAIN, Center for Operations Research and Econometrics (CORE)); Benteng, ZOU (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))
    Abstract: In this article we extend the recent literature on overlapping generations and pollution by allowing each generation’s utility to depend on past levels of pollution. To conform with the literature on habit in consumption we call this extension habit in pollution. Habit in pollution can visualize itself as either a concern for the flow of pollution only, or for the stock, or anything in between. We show that habit in pollution has not only significant consequences for the level of pollution and capital, but also for the evolution of utility over time. We observe that habit in pollution can lead to violations of two standard criteria of sustainability, which suggests that habit in pollution can be another source of intergenerational inequity.
    JEL: Q20 I31
    Date: 2006–12–31
  5. By: José Manuel Madeira Belbute (Department of Economics, University of Évora Author-Name Paulo Brito; Technical University of Lisbon – Instituto Superior de Economia e Gestão)
    Abstract: This note extends the standard theory of intertemporal consumer preferences with regard environmental goods and services. It proposes an intertemporal dependent preferences framework that generates a “persistence effect” consistent with consumer’s environmental friendly behaviours. Given the present civilizational and cultural pattern of preferences, consumers need to endure a learning-by-consuming process to full enjoy (and use) them, in order to commit himself with “green-economic behaviors" The contribution to the existing literature is two fold. First we consider the presence of habit-formation with regard the consumption of environmental goods and services in a two goods framework. Secondly, we establish a consistent preference structure that displays a bounded adjacent complementarity in the consumption of environmental goods and services and present the correspondent properties that need to bee fulfilled by the utility function. These extensions will allow new advances in environmental economics, especially in the complete characterization of the demand for environmental goods and services and for the sustainable growth debate.
    Keywords: Consumer behavior, intertemporal dependent preferences, environmental economics.
    JEL: C61 E20 D11 D81 D91 Q01
    Date: 2006
  6. By: José Manuel Madeira Belbute (Department of Economics, University of Évora Author-Name Paulo Brito; Technical University of Lisbon – Instituto Superior de Economia e Gestão)
    Abstract: In this paper, we use a simple framework to analyze two issues relating the canonical model of environmental economics. The first is related with the consistency between the intertemporal and the instantaneous structure of the utility function. The second is related with to the specific stability and dynamic properties of the model and to its response to relative price and income exogenous changes. We find that, if there is bounded adjacent complementarity in demand for environmental goods, intertemporal independence in the demand for the other goods and if the utility function displays goods separability, then there will be short-run complementarity between the stock of tastes and the financial wealth. Increases in income will rise the long-run demand for environmental good while increases in the relative price will decrease it.
    Keywords: Intertemporal Dependent Preferences, Environmental Economics, Consumer Behavior, Dynamic Systems, Stability.
    Date: 2006
  7. By: Jansen, Hans G.P.; Siegel, Paul B.; Pichón, Francisco
    Abstract: "The overall objective of this paper is to develop an appropriate conceptual and analytical framework to better understand how prospects for growth and poverty reduction can be stimulated in rural Honduras. We employ complementary quantitative and qualitative methods of analysis, driven by an asset-base approach. Emphasis on assets is appropriate given high inequalities in the distribution of productive assets among households and geographical areas in Honduras. Such inequalities are likely to constrain how the poor share in the benefits of growth, even under appropriate policy regimes. We focus on household assets (broadly defined to include natural, physical, human, financial, social and locational assets) and their combinations necessary to take advantage of economic opportunities. We examine the relative contributions of these assets, and identify the combinations of productive, social, and location-specific assets that matter most to raise incomes and take advantage of prospects for poverty-reducing growth. Factor and cluster analysis techniques are used to identify and group different livelihood strategies; and econometric analysis is used to investigate the determinants of different livelihood strategies and the major factors that impact on income. Spatial analysis, community livelihood studies and project stocktakings are brought in to complement some of the more quantitative household survey data used. Our conclusions and recommendations are mainly focused on hillsides and hillside areas since the majority of the available data is for these areas." Authors' Abstract
    Keywords: Poverty alleviation Latin America ,Sustainability ,Livelihoods ,Spatial analysis (Statistics) ,Hillside areas ,
    Date: 2005
  8. By: Linacre, Nicholas A.; Gaskell, Joanne; Rosegrant, Mark W.; Falck-Zepeda, Jose; Quemada, Hector; Halsey, Mark; Birner, Regina
    Abstract: " Meeting the food needs of the world's growing population while reducing poverty and protecting the environment is a major global challenge. Genetically modified crops appear to provide a promising option to deal with this challenge. However there is a need to make strategic decisions on how to spend limited agricultural research funds in order to achieve a maximum impact with regard to finding sustainable solutions to end hunger and poverty. In international development institutions, there is growing interest in the potential use of Strategic Environmental Assessment (SEA) as part of a research based Environmental Management System (EMS) to promote mainstreaming of environmental considerations in policy development. SEA was developed as an approach to integrate environmental considerations at a policy level, where alternatives environmental policies can be evaluated. In this paper, we propose using SEA in a policy research and priority setting process regarding new technologies, taking the development of Genetically Modified Organisms (GMOs) as an example. We propose that this method would be a useful tool for the international agricultural research centers of the Consultative Group for International Agricultural Research (CGIAR), streamlining business processes, strengthening accountability, sharpening the research agenda it supports, fostering broader partnerships, and increasing the relevance and impact of CGIAR research in achieving international development goals. Currently international law requires only Environmental Impact Assessments (EIAs) of specific biotechnology projects. The incorporation of environmental considerations only at the level of specific projects precludes the adoption of alternative environmental policies. In this review, we outline an SEA approach currently being considered at the International Food Policy Research Institute (IFPRI) for use in evaluating biotechnology policies. SEA may be a useful tool to inform the evaluation of biotechnology policies and priorities by taking account of information on the economic, social, and environmental benefits, cost and risks of adopting those policies." Authors' Abstract
    Keywords: Risk ,Strategic Environmental Assessment ,Genetically modified organisms ,Living modified organisms ,
    Date: 2005
  9. By: You, Liangzhi; Rosegrant, Mark W.; Fang, Cheng; Wood, Stanley
    Abstract: "Climate change continues to have major impact on crop productivity all over the world. While many researchers have evaluated the possible impact of global warming on crop yields using mainly indirect crop simulation models, there are relatively few direct assessments on the impact of observed climate change on past crop yield and growth. We use a 1979-2000 Chinese crop-specific panel dataset to investigate the climate impact on Chinese wheat yield growth. We find that a 1 percent increase in wheat growing season temperature reduces wheat yields by about 0.3 percent. This negative impact is less severe than those reported in other regions. Rising temperature over the past two decades accounts for a 2.4 percent decline in wheat yields in China while the majority of the wheat yield growth, 75 percent, comes from increased use of physical inputs. We emphasize the necessity of including such major influencing factors as physical inputs into the crop yield-climate function in order to have an accurate estimation of climate impact on crop yields." Authors' Abstract
    Keywords: Global warming ,Climate ,Wheat production ,
    Date: 2005
  10. By: Wittmer, Heidi; Birner, Regina
    Abstract: "The present paper analyzes the role of discourse in conflicts concerning nature conservation in tropical countries. We focus on the contested question as to whether and to which extent local communities should be allowed to live and use resources inside protected areas. Applying the concepts of belief-systems, story-lines and discourse coalitions, we analyze two empirical case studies dealing with this conflict: The first case study is concerned with a policy process at the national level that aimed at passing a community forestry law in Thailand to make the establishment of community forests in protected areas possible. The second case study deals with the proposed resettlement of a village from the Lore Lindu National Park in Sulawesi, Indonesia. In both cases, three discourses could be observed: a conservationist discourse, an eco-populist discourse, and a developmentalist discourse. The case studies show that the conservationists and the developmentalists were able to form a discourse coalition, which was challenged by the proponents of the eco-populist discourse. The analysis also demonstrates that establishing story-lines in the discourse can lead to the neglect of facts and problems that do not fit in either discourse. The paper draws attention to the role of science in the different discourses and concludes that scientists should become more aware of the role they play in the different discourses." Author's Abstract
    Keywords: south east asia ,East and Southeast Asia ,Protected areas ,
    Date: 2005
  11. By: Swallow, Brent; Meinzen-Dick, Ruth; van Noordwijk, Meine
    Abstract: "Payments for environmental services (PES) are increasingly discussed as appropriate mechanisms for matching the demand for environmental services with the incentives of land users whose actions modify the supply of those environmental services. While there has been considerable discussion of the institutional mechanisms for PES, relatively little attention has been given to the inter-relationships between PES institutions and other rural institutions. This paper presents and builds upon the proposition that both the function and welfare effects of PES institutions depend crucially on the co-institutions of collective action (CA) and property rights (PR)... This paper presents a conceptual framework that clarifies the inter-linkages between property rights, collective action, payment for environmental services, and the welfare of smallholder land users. The framework is centered on concerns of function and welfare effects of PES. The functional perspective clarifies the effects of collective action and property rights institutions on the supply of environmental services. The welfare perspective considers smallholders as one of several potential sources of supply,sometimes directly competing against large landowners and public sector providers. from Author's Abstract
    Keywords: Environmental services ,Poverty alleviation ,Collective action ,Smallholders ,Property rights ,Rural institutions ,Welfare effects ,Payment for environmental services (PES) ,
    Date: 2005
  12. By: Alba Distaso
    Abstract: This paper has a twofold aim: the former is to focus on the concept of well-being/quality of life and its relationships with local sustainable development and the latter is to apply the capability approach at regional level. More specifically, one wants to analyse if sustainable development at a local level serves to better understand both the formation of well-being and/or quality of life. The instrument which will allow us to verify the operational value of the capability approach is the building of a multidimensional synthetic index of sustainability. This index will consists of aggregating a set of variables of different nature – from the socio-economic to the environmental ones. It may be considered an alternative to the conventional indices, which are normally founded on GDP, and will be applied to the Italian regions. After having standardised each variable so to make them homogeneous, the methodology proposed, which will allow us to gather and compare the Italian regions according to the higher or lower level of quality of life, is the Wroclaw’s Economic School taxonomic method. The results obtained may represent an information tool for targeting and zoning sustainable development measures which aim at improving well-being/quality of life at a local level.
    Date: 2005–12
  13. By: Jean-Marc Roda; Philippe Cadène
    Abstract: Les filières du bois à Tiruchengodu, petite ville de l’Inde du Sud, sont étudiées. Ce cas permet de comprendre l’articulation entre production à plusieurs niveaux d’échelle, dans une société très complexe. L’analyse du système de production montre le rôle initial de la dynamique urbaine de la ville en question, et l’organisation en deux filières différenciées qui résulte de la demande de produits différents La première filière correspond à un approvisionnement local, et la seconde à un approvisionnement au loin, ou « extra-local ». Les réseaux d’acteurs impliqués se révèlent complexes mais bien structurés, grâce au rôle fondamental joué par une variété d’intermédiaires, qui facilitent toutes les fonctions de l’économie de ce secteur, de la logistique jusqu’aux services financiers. Un des principaux facteurs de la complexité du système étudié réside dans la faible capacité d’investissement individuel, et dans l’extrême parcellisation des fonctions qui en résultent. Les dynamiques de groupes et de communauté sont très prégnantes dans ce système, et en organisant le jeu des pouvoirs au sein du système, permettent aux acteurs individuels d’accéder à des formes de contrôle de leur environnement économique. Les réseaux d’acteurs se révèlent une organisation en « réseau de réseaux », capable de connecter la ville étudiée aux autres Etats de l’Inde et à l’international, grâce à des fonctions d’intermédiation depuis le local jusqu’au global.
    JEL: D21 D23 D85 F23 L22 L73 O13 Q17 Q23 Q56 Q57 R12 Z13
    Date: 2002–05
  14. By: Philippe Guizol; Jean-Marc Roda; Dwi R. Muhtaman; Pierre Laburthe; Swan Fauveaud; Martine Antona
    Abstract: Planté depuis de nombreux siècles à Java, le teck y a été particulièrement développé au XIXème siècle. Les 200 000 ha de plantation de teck à Java constituent la plus grande plantation de cette essence au monde. Cette ressource est néanmoins surexploitée, et des ONG mettent en question sa gestion par l’Etat. Il s’agit d’un bois profondément ancré dans la culture Javanaise, dont l’industrie à une longue histoire, mais qui a en quelques années, après la crise asiatique, a vu une flambée des exportations, puis un effondrement des prix à l’exportation. La filière meuble en particulier, est organisée en deux filières parallèles. La première, artisanale, est très liée à l’énorme consommation locale, et entraîne une forte tension sur les pris locaux, et est en compétition pour l’accès à la ressource avec la seconde, industrielle, qui approvisionne en particulier les marchés étrangers. Face aux problèmes complexes qui se posent, sont proposées des solutions simplistes. La campagne européenne des ONG pour l’embargo sur le teck Indonésien, sensé le protégé à des effets pervers et est un remède pire que le mal. L’engagement éthique des grands producteurs, des incitations pour les petits acteurs locaux, et la progressivité des améliorations du système de production paraissent plus raisonnables.
    JEL: K42 L73 O13 Q16 Q17 Q23 Q56 Q57
    Date: 2003–03
  15. By: Jean-Marc Roda; Shantiko Bayuni
    Abstract: In its present state, the analysis of the wood industry system in Tanimbar archipelago only covered the South part of the Yamdena island. In this part of the island, the wood industry system feeds the demand of the local villages and of Saumlaki. Among the villages of South Yamdena, two villages (Wermatan and Ilngei) are remarkable with their high level of wood activities. Thus these are analysed in the following sections. In the north part of the Island, the system feeds the local villages, the city of Larat, but also some outer markets. While the structure of the system is certainly very similar to what has been analysed in the southern part of the island, the quantities may defer in a great proportion.
    JEL: L73 Q23 Q56
    Date: 2004–05
  16. By: Jean-Marc Roda; Jean Gérard; Cédric Gorse
    Abstract: La faisabilité économique de la fabrication de parquet en chêne vert, essence très abondante sur le pourtour méditerranéen, a été analysée par le Cirad-Forêt à la demande du Conseil Général de l’Hérault. Le prix de revient global de la transformation a été calculé en se référant à une opération expérimentale de production et fabrication avec mise en oeuvre en conditions réelles d’utilisation. La rentabilité de l’opération a été analysée en cohérence avec des marchés déjà existants. Une analyse de sensibilité des paramètres qui caractérisent la faisabilité économique de la fabrication a mis en évidence le rôle essentiel du prix de vente du produit fini, du rendement matière au sciage, et du prix d’achat de la matière première. Une variation de 1 % de chacun de ces trois paramètres peut induire une variation de plus de 35 % de la marge d’exploitation. La rentabilité de la fabrication de parquet en chêne vert est directement dépendante de la construction d’un réseau de fournisseurs réguliers pour sécuriser l’approvisionnement.
    JEL: L73 O13
    Date: 2001–06
  17. By: Jean-Marc Roda
    Abstract: In the state of Acre (Brazil), keys of development are the valorization of natural resources, which include non-ligneous and timber products. The need to develop a sustainable wood industry lead to assess markets that can be targeted from Acre in an sustainable and economic way. The objective of this analysis is so to highlight the opportunities and the marketing strategies that are the most suitable from a timber business point of view, in the specific context of Acre. Care should be taken that all the conclusions that can be interpreted from this work are valid from a timber business point of view, but these market considerations don’t necessarily prevail on other considerations, such as social or political ones. From a general point of view, Acre State, despite its remote location, is not independent of the globalization process. This means that the market analysis is required to start from the world level markets, and has to deepen progressively down to national, regional and local levels, in order to correctly isolate which are the competitive advantages and disadvantages of the specific Acrean context.
    JEL: L73 O13 Q16 Q17 Q23 Q56 Q57
    Date: 2001–03
  18. By: Jean-Marc Roda
    Abstract: Les filières bois ont une importance cruciale pour la plupart des pays en développement. Elles y représentent 90% de la consommation énergétique, et y constituent couramment entre 3 et 6 % du Produit National Brut, et jusqu’à 70 % de ce dernier, dans le cas des pays les plus dépendants de leur ressource forestière.
    JEL: L73 O13
    Date: 2003–06
  19. By: L. Gangadharan; A. Farrell; R. Croson
    Abstract: Emissions trading is an important regulatory tool in environmental policy making. Unfortunately the effectiveness of these regulations is difficult to measure in the field due to the unavailability of appropriate data. In contrast, experiments in the laboratory can provide guidance to regulators and legislatures about the performance of different market features in emission trading programs. This paper reports on the implementation of three different institutional designs, and presents experimental results investigating important features of emissions trading regimes: the ability to make investments in emissions abatement, ability to bank allowances and a declining emissions cap, both with and without uncertainty. These features are observed in virtually all existing air pollution emissions trading programs currently in place and will almost certainly be part of future applications. Like previous experimental studies of emissions trading, this paper shows that the efficiency gains expected from economic theory emerge observationally. We also show reduced efficiency when permits are bankable due to over-banking and when investments in emissions abatement are possible due to overinvesting. These tendencies do not worsen, however, when emissions caps decline.
    Keywords: Emissions Trading, Investment in Abatement, Banking, Laboratory Experiments
    JEL: Q20 C91
    Date: 2005
  20. By: John Creedy; Catherine Sleeman
    Abstract: This paper examines the effects on consumer prices arising from imposing a carbon tax in New Zealand, using information about inter-industry transactions and the use of fossil fuels by industries. The welfare effects of the carbon tax are examined for a range of different household types. Finally, overall measures of inequality are reported.
    Keywords: Carbon tax; equivalent variations; excess burdens; inequality
    JEL: H23 H31 Q58 D57
    Date: 2005
  21. By: Klaus Keller (Department of Geosciences, Penn State); Gary Yohe (Department of Economics, Wesleyan University); Michael Schlesinger (Department of Atmospheric Sciences, University of Illinois at Urbana-Champaign)
    Date: 2005–12

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