nep-env New Economics Papers
on Environmental Economics
Issue of 2007‒02‒03
five papers chosen by
Francisco S.Ramos
Federal University of Pernambuco

  1. Management for a Variety of Environmental Pollution and North-South Trade By Michida, Etsuyo
  2. Environmental impacts of international trade: The Case of Industrial Emission of Sulfur Dioxide (SO2) in Chinese provinces By Jie He
  3. "Sustainability and Surplus" By Haider A. Khan
  4. Queen Margaret University College’s Sustainable, Community Campus By Susan Woodman
  5. The Fishery as a Watery Commons: Lessons from the Experiences of Other Public Policy Areas for US Fisheries Policy By Lawrence J. White

  1. By: Michida, Etsuyo
    Abstract: A simple static model incorporating a variety of environmental pollution is developed. An autarky model shows that a developing country regulates fewer types of pollution by income-induced environmental policy. As income grows, the types of regulated pollution increase and also introduced regulations become tougher.Then the model incorporates international trade between a developed country and a developing country. The model gives a new interpretation for the pollution haven hypothesis. Some types of pollution abated with inefficient technology are emitted more in a developing country but other types necessarily increase in a developed country in order to meet the trade balance.
    Keywords: Pollution, Trade, Developing countries, Developed countries, Environmental policy, International trade, Trade problem
    JEL: F11 O11 Q25
    Date: 2006–10
  2. By: Jie He (GREDI, Département d'économique, Université de Sherbrooke)
    Abstract: To get better understanding on trade’s impact on environment, we construct a four-equation simultaneous system, in which emission is determined by the three economic determinants: scale, composition and technical effects and directly by trade. Supposing the three economic determinants are also endogenous to trade, we check in the following three functions the indirect impacts of trade on environment through the intermediation of the three effects. The model is then estimated by 29 Chinese provinces’ panel data on industrial SO2 emission (1993-2001). Our estimation results reveal totally opposite role of export expansion and accumulation of manufactured goods import in industrial SO2 emission determination. The results do not support “pollution haven” hypothesis; the reinforced competition faced by exporters is a positive factor encouraging technology progress in pollution abatement. China’s actual comparative advantage resides in labor-intensive industries, exporting to world market actually helps to reduce pollution increasing caused by its heavy-industry-oriented industrialization strategy, which is traditionally supported by government-intervened import activities.
    Keywords: : international trade, industrial SO2 emission, simultaneous system, scale effect, composition effect, income effect, Hypothesis of “Porter” and “Racing to the bottom”, China.
    JEL: Q56 Q53
    Date: 2007
  3. By: Haider A. Khan (GSIS, University of Denver)
    Abstract: In this paper we present two new concepts for studying sustainability. The first is the idea of an environmentally adjusted surplus(ES). The classical concept of surplus is revised to approximate the total available discretionary income for the society under ordinary (capitalist) growth process.ES is an operationalizable concept. We demonstrate this here via a simplified but illustrative exercise. Work with large data sets employing social and environmental accounting will yield sharper and more accurate results. Our second contribution is the concept of a modified stationary state. Recognition of the economic uncertainty and limits to calculations leads naturally to the idea that both individual and social rationality is bounded. Under the bounded rationality hypothesis MSS is a more appropriate concept for sustainability than the ones currently adhered to. This includes Boulding's definition of steady state as well.It is our hope that with these new concepts at hand the analysis and policy prescriptions regarding a sustainable future can proceed more realistically. Together they also suggest a new research program for environmental and ecological economics.Some components of this program will be identifying and estimating ES sectorally and in aggregate, mapping the transition paths to MSS, and most importantly asking what modifications and changes in our socio-economic and political institutions are necessary to make this transition possible. Since the MSS is to be achieved in the future but choices must be made now, an inter-temporal allocation problem between the present and future generations is involved. We need to ask: "How will the rights of future generations be defined, and how will enforcing those rights influence allocation decisions?" This is one of the most important institutional questions in a global setting as well. In the absence of appropriate international institutions with enforcing authority, nation states will define and enforce these rights in a haphazard manner. In the worst case they will do nothing. In order to avoid such an impasse, we have proposed the somewhat novel concept of a modified stationary state of a sustainable economy. The illusion that ever-higher levels of consumption will yield ever-higher levels of satisfaction provides support at the individual level for a system of indefinite expansion that in the long run is simply not viable. It is not viable because, in a world of finite resources and pollution-absorption capacity, any system that depends on continuing expansion of production or "throughput" cannot be sustained. Ultimately, such a system will have to be a "modified stationary state" which is possible in a world where agents have bounded rationality but also forward looking abilities.
    Date: 2007–01
  4. By: Susan Woodman
    Abstract: The new campus of Queen Margaret University College in the United Kingdom is designed to be a sustainable educational and community resource. Early consultation with students and staff on the campus design revealed a strong desire for a sustainable environment, with plenty of green space for all to enjoy. In response to this, the design focuses on maximising biodiversity, encouraging green transport, and making the most of natural daylight and ventilation in interior spaces. The Queen Margaret RE:LOCATE project will transform 35 acres of low grade farmland into diverse wildlife habitats to provide the parkland setting. The campus will be open to the public for leisure, education and recreation.
    Keywords: sustainable development
    Date: 2006–11
  5. By: Lawrence J. White
    Date: 2006

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