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on Environmental Economics |
| By: | Manuela Pulina; Bianca Biagi |
| Abstract: | The causal relationship between tourist demand and supply is investigated employing four time series models: the first model includes nights of stay and number of supplied accommodation; the second model uses nights of stay and supplied beds (i.e. capacity); the third model employs nights of stay and the quality of supplied accommodation; finally, the fourth model includes nights of stay and the quality of supplied capacity. To test for Granger causality in the presence of a cointegration relationship between the economic variables of interest, a bivariate VAR model is used. Empirical results are from four distinctive models for Sardinia (Italy) over the time span 1955 to 2004. The first model suggests a unidirectional causal relationship running from demand to accommodation firms; the second model suggests a bi-directional causal relationship between demand and capacity. The third and fourth models indicate the existence of a unidirectional causal relationship running from quality to demand. This empirical finding implies that the environmental conservation policy (Piano Paesaggistico Regionale), adopted by the Region of Sardinia, may be feasible without compromising the number of tourists visiting Sardinia and hence, its economic growth. |
| Keywords: | tourist demand, supply, quality, growth, Granger causality, policy intervention. |
| JEL: | O18 O21 C32 C51 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:cns:cnscwp:200609&r=env |
| By: | van der Ploeg, Frederick |
| Abstract: | The political economy of resource rich countries is surveyed. The empirical evidence suggests that countries with a large share of primary exports in GNP have bad growth records and high inequality, especially if the quality of institutions and the rule of law are bad. The economic argument that a resource bonanza induces appreciation of the real exchange rate and a decline of non-resource export sectors may have some relevance. More important, a resource boom reinforces rent grabbing, especially if institutions are bad, and keeps in place bad policies. Optimal resource management may make use of the Hotelling rule and the Hartwick rule. However, a recent World Bank study suggests that resource rich economies squander their natural resource wealth and more often have negative genuine saving rates. Still, countries such as Botswana, Canada, Australia and Norway suggest it is possible to escape the resource curse. Some practical suggestions for a better management of natural resources are offered. |
| Keywords: | corruption; cross-country and panel evidence; debt overhang; dependent economy; Dutch Disease; genuine saving; growth record; Hartwick Rule; Hotelling Rule; institutions; natural resource wealth management; optimal resource depletion; real exchange rate; resource curse; resource dividend; resource fund; rule of law; sustainable development; transparency |
| JEL: | C12 C13 E1 F43 K42 O41 Q3 |
| Date: | 2006–05 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:5688&r=env |
| By: | Frank Ackerman and Ian J. Finlayson |
| Abstract: | Economic models of climate change often take the problem seriously, but paradoxically conclude that the optimal policy is to do almost nothing about it. We explore this paradox as seen in the widely used DICE model. Three aspects of that model, involving the discount rate, the assumed benefits of moderate warming, and the treatment of the latest climate science, are sufficient to explain the timidity of the model's optimal policy recommendation. With modifications to those three points, DICE shows that the optimal policy is a much higher and rapidly rising marginal carbon price; that higher carbon price has a greater effect on physical measures of climate impacts. Our modifications exhibit nonlinear interactions; at least at low discount rates, there is synergy between individual changes to the model. At low discount rates, the inherent uncertainty about future damages looms larger in the analysis, rendering long-run economic modeling less useful. Our analysis highlights the sensitivity of the model to three debatable assumptions; it does not, and could not, lead to a more reliably “optimal” cost of carbon. Cost-effectiveness analysis, focusing on the generally shorter-term cost side of the problem, reduces the economic paradoxes of the long run, and may make a greater contribution than economic optimization modeling. |
| URL: | http://d.repec.org/n?u=RePEc:dae:daepap:06-07&r=env |
| By: | Jean-Pierre Amigues (Université de Toulouse 1 and INRA (IDEI and LERNA)); Michel Moreaux (Université de Toulouse 1 (IUF, IDEI and LERNA)); Francesco Ricci (Université de Cergy-Pontoise (THEMA) and LERNA) |
| Abstract: | The effective labor possibility frontier (ELPF) is defined as the set of statically efficient allocations of labor imputs in the competing tasks of production and R&D. It summaries the labor scarcity constraint. We show that the dynamically efficient paths of R&D, resource extraction and consumption depend on the shape of the ELPF, while their steady state levels do not. In the case of an initial low endowment of resources, the transition to the stationary state is characterized by lower R&D effort, slower growth of per-capita consumption and a longer transition when labor is relatively specialized than when it is more flexible. We analyse policy options for modifying the shape of the ELPF, such as increasing the size of the labor force, subsiding higher education or lifelong learning. |
| Keywords: | Exhaustible resources and R&D, Labor allocation, Education policy |
| JEL: | Q01 Q30 I20 J00 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:ema:worpap:2006-16&r=env |
| By: | Christophe Rynikiewicz (LEPII - Laboratoire d'Economie de la Production et de l'Intégration Internationale - [CNRS : FRE2664] - [Université Pierre Mendès-France - Grenoble II]); Anne Chetaille (GRET Pôle Politiques Publiques et Régulations Internationales - [GRET]) |
| Abstract: | A growing attention is given to identify workable approaches, bringing together both goals of climate change mitigation and adaptation and poverty alleviation. Challenges are numerous. Developing countries vulnerability to climate change is high. While access to energy is considered as a key priority for developing countries needs, the climate change constraint would appeal for development paths to be less intensive in greenhouse gases.<br />In this paper, we question the science and technology contribution to resilience in current international policy debate on poverty reduction and sustainable development. Secondly, key principles are defined to ensure an effective contribution of technology to addressing the challenges of leapfrogging. In particular, the ability to associate the stakeholders, define basic needs is fundamental in any technological transitions. Thirdly, we present the IMPACT Network's methodology and case studies that provide an original framework to design intermediate public policies, integrating multiple priorities in local and national strategies. This approach may help creating the enabling environments for technology development. |
| Keywords: | Climate vulnerability ; inequalities alleviation ; appropriate technologies ; intermediate public policies ; poverty ; adaptation |
| Date: | 2006–10–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:papers:halshs-00096512_v2&r=env |
| By: | Drosdowski, Thomas |
| Abstract: | Political economy may provide an important link between inequality and pollution. This paper studies the dynamic relationship between inequality and redistributive policy leading to differing transitional paths of pollution to the steady state, using a pollution-augmented framework developed by Benabou and employing numerical simulations. The results indicate that democratization can be beneficial for the environment in the long run if the share of redistributive transfers devoted to abatement is relatively high. Otherwise, less wealth-biased and more democratic regimes display highest income and pollution levels, differing in transitional paths contingent on initial inequality levels. Sustainable development, defined as non-declining level of utility over time, is achieved for a high degree of democracy when initial inequality is low. The representative agent with average wealth does not provide sustainability, which emphasizes the importance of heterogeneity in power and income for sustainability debates. |
| Keywords: | pollution, political economy, sustainability |
| JEL: | D31 D72 Q53 |
| Date: | 2006–10 |
| URL: | http://d.repec.org/n?u=RePEc:han:dpaper:dp-347&r=env |
| By: | Pascale SCAPECCHI |
| Abstract: | This paper focuses on the practical use of cost-benefit analysis (or, more generally, of monetary valuation and other decision-making tools) in environmental policymaking. Based on a questionnaire sent to Environmental Ministries of OECD member countries, a review of the use of such analysis in environmental policymaking is presented. Then, the discussion considers the specific case of children’s environmental health, as recent epidemiological studies have highlighted the particular vulnerability of children to environmental pollution. Indeed, most of environmental policies currently in place are based upon information related to adult populations and not accounting for risk differences between adults and children. Such a lack of consideration of the specific case of children may lead to inefficient policies, and important loss in social welfare. In light of these findings, a review of actual environmental legislation shows whether impacts of environmental degradation specifically on children’s health are taken into account in policymaking and if so, how this is done. Concluding remarks close the paper |
| Keywords: | decision making, cost-benefit analysis, environmental policy, valuation, environmental regulation, children’s health |
| JEL: | D61 D62 D64 H43 I18 Q51 |
| Date: | 2006–10 |
| URL: | http://d.repec.org/n?u=RePEc:mil:wpdepa:2006-26&r=env |
| By: | Jan K. Brueckner (Department of Economics, University of California-Irvine); Raquel Girvin (Transporation Sciences, University of California-Irvine) |
| Abstract: | This paper explores the impact of airport noise regulation on airline service quality and airfares. It also characterizes the socially optimal stringency of noise limits, taking both noise damage and the various costs borne by airlines and their passengers into account. The analysis also investigates the effect of noise taxes, as well as the optimal level level of such taxes. Along with the companion paper by Girvin (2006a), this work represents the first complete theoretical investigation into the economics of airport noise regulation using a model where the interests of the key relevant stakeholders are captured. |
| Keywords: | Conflict; Airport noise; Flight frequency: Airfares |
| JEL: | L0 L9 Q2 |
| Date: | 2006–09 |
| URL: | http://d.repec.org/n?u=RePEc:irv:wpaper:060706&r=env |