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on Environmental Economics |
| By: | Christer Ljungwall (China Center of Economic Research, Peking University); Martin Linde-Rahr (Department of economics and statistics, Goteborg University) |
| Abstract: | This paper introduce an environmental policy variable, i.e., the provincial pollution levy paid by an average firm, and measure its impact on the foreign investors' location decisions over the 1987 to 1998 period. We argue that less developed regions in China are more inclined to sacrifice environmental policies as an instrument to attract foreign direct investment (FDI). National level results show that stringent environmental policies have insignificant effect on foreign investors' location decision, and that transportation, economic growth, and regional location matters more. At the provincial level stringent environmental policies reduce FDI in the less developed regions. |
| Keywords: | Foreign Direct Investment, Environmental policy |
| JEL: | C23 E24 F21 H25 O53 Q28 |
| Date: | 2005–12 |
| URL: | http://d.repec.org/n?u=RePEc:eab:macroe:681&r=env |
| By: | Rousseau Sandra (K.U.Leuven-Center for Economic Studies); Moons Ellen (K.U.Leuven-Center for Economic Studies) |
| Abstract: | This paper studies the possibility of using auctions as a policy instrument in conservation programs. In particular, it provides insight into the main concerns that need to be dealt with when implementing conservation auctions. To show the cost saving potential of this policy instrument, we also calculate the social welfare improvement that can be obtained for an afforestation project in Flanders. Creation-Date: 2006-03 |
| Keywords: | Auctions; Conservation contracts; Afforestation |
| URL: | http://d.repec.org/n?u=RePEc:ete:etewps:ete0606&r=env |
| By: | BELIS-BERGOUIGNAN Marie-Claude (E3i-IFReDE-GRES); CAZALS Clarisse (E3i-IFReDE-GRES) |
| Abstract: | One main environmental issue in wine growing is the non point source pollution of underground water by excessive use of pesticides. The aim of our paper is to present the diversity of voluntary environmental approaches (VEA) .We explain this diversity by the different values that suppose the actors submission to rules and standards, which determine adhesion factors. The analysis is empirically based on original survey conducted towards a sample of more than 1500 wine producers. In a first part, we show that there are two VEA standard models in wine growing: integrated production and organic production. In a second part, we specify these two standard models by different motivation criteria (controlling factor). In organic farming, the relationships with nature are important whereas economic factor determine the choice of integrated farming. |
| Keywords: | Non point source pollution - Integrated farming - Organic farming - Organized proximity - Wine growing - Adhesion factors- Voluntary Environmental Approaches |
| JEL: | Q13 Q25 Q53 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:grs:wpegrs:2006-11&r=env |
| By: | Patrick Bayer; Nathaniel Keohane; Christopher Timmins |
| Abstract: | Conventional hedonic techniques for estimating the value of local amenities rely on the assumption that households move freely among locations. We show that when moving is costly, the variation in housing prices and wages across locations may no longer reflect the value of differences in local amenities. We develop an alternative discrete-choice approach that models the household location decision directly, and we apply it to the case of air quality in U.S. metro areas in 1990 and 2000. Because air pollution is likely to be correlated with unobservable local characteristics such as economic activity, we instrument for air quality using the contribution of distant sources to local pollution – excluding emissions from local sources, which are most likely to be correlated with local conditions. Our model yields an estimated elasticity of willingness to pay with respect to air quality of 0.34 to 0.42. These estimates imply that the median household would pay $149 to $185 (in constant 1982-1984 dollars) for a one-unit reduction in average ambient concentrations of particulate matter. These estimates are three times greater than the marginal willingness to pay estimated by a conventional hedonic model using the same data. Our results are robust to a range of covariates, instrumenting strategies, and functional form assumptions. The findings also confirm the importance of instrumenting for local air pollution. |
| JEL: | H5 Q2 Q5 R1 |
| Date: | 2006–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:12106&r=env |
| By: | Gunter Stephan; Georg Mueller-Fuerstenberger |
| Abstract: | There are two polar views on the issue of discounting. One is to focus on intergenerational equity which means discounting utilities at low rates. Alternatively, the focus is on efficiency where the choice of the discount rate should imply rates of return that are similar to those that prevail in the capital markets. This paper analyses how different discount rates affect greenhouse gas abatement and endogenous technological change. Starting point is a simple analytical model where we show that higher discount rates cannot result in smaller stocks of atmospheric carbon. However, we cannot rule out the paradoxical result that a higher discount rate may lead to a higher knowledge stock. Therefore an Integrated Assessment Model is set up to take a closer look into the time pattern of emissions. Surprisingly, low discount rates lead to a sharp increase in emissions during the beginning of the time horizon, which, however, is overcompensated through higher efforts in greenhouse gas mitigation during the rest of the time horizon. Furthermore, at low discount rates, the potential to save energy through technological innovation is utilized faster and more pronounced than with higher discount rates. |
| Keywords: | Integrated Assessment; discount rate; endogenous technological change; climate change |
| JEL: | Q40 O13 |
| Date: | 2006–03 |
| URL: | http://d.repec.org/n?u=RePEc:ube:dpvwib:dp0603&r=env |