nep-env New Economics Papers
on Environmental Economics
Issue of 2007‒08‒08
twenty-two papers chosen by
Francisco S.Ramos
Federal University of Pernambuco

  1. Climate Change: National and Local Policy Opportunities in China By Fei Teng; Alun Gu
  2. Voluntary Environmental Regulation in Developing Countries: Mexico's Clean Industry Program By Blackman, Allen; Lahiri, Bidisha; Pizer, William A.; Planter, Marisol Rivera; Piña, Carlos Muñoz
  3. The role of environmental and technology policies in the transition to a low-carbon energy industry By Christoph Heinzel; Ralph Winkler
  4. Putting Payments for Environmental Services in the Context of Economic Development By David Zilberman; Leslie Lipper; Nancy McCarthy
  5. A Cost-Index Approach to Valuing Investment In "Far Into The Future" Environmental Technology By Macauley, Molly K.; Shih, Jhih-Shyang
  6. Environmental Policy, Innovation and Performance : New Insights on the Porter Hypothesis By Paul Lanoie; Jérémy Laurent-Lucchetti; Nick Johnstone; Stefan Ambec
  7. Impacts of the German Support for Renewable Energy on Electricity Prices, Emissions and Profits : An Analysis Based on a European Electricity Market Model By Thure Traber; Claudia Kemfert
  8. Climate Change, Energy Demand and Market Power in a General Equilibrium Model of the World Economy By Roberto Roson; Francesco Bosello; Enrica De Cian
  9. Fees in an Imperfect World: An Application to Motor Vehicle Emissions By Ando, Amy; Harrington, Winston; McConnell, Virginia D.
  10. Environmental Policy, Innovation and Performance : New Insights on the Porter Hypothesis By Paul Lanoie; Daniel Llerena
  11. An Even Sterner Review: Introducing Relative Prices into the Discounting Debate By Sterner, Thomas; Persson, U. Martin
  12. A Cost-Benefit Analysis of the New Orleans Flood Protection System By Stephane Hallegatte
  13. Fixed Instruments to Cope with Stock Externalities An Experimental Evaluation By Gastón Giordana; Marc Willinger
  14. Technology, International Trade, and Pollution from U.S. Manufacturing By Arik Levinson
  15. Des billets verts pour des entreprises agricoles vertes ? By Lanoie, P.; Llerena, D.
  16. Ground Source Heat Pump Systems in Canada: Economics and GHG Reduction Potential By Hanova, Jana; Dowlatabadi, Hadi; Mueller, Lynn
  17. Democracy and the curse of natural resources By Antonio Cabrales; Esther Hauk
  18. The transitions discourse in the ecological modernisation of the Netherlands By Adrian Smith; Florian Kern
  19. First Evidence of Asymmetric Cost Pass-through of EU Emissions Allowances : Examining Wholesale Electricity Prices in Germany By Georg Zachmann; Christian von Hirschhausen
  20. Agricultural Education for Entrepreneurship, Excellence and Environmental Sustainability: Agenda for Innovation and Change By Gupta Anil K.
  21. Stability of the WTP measurements with successive use of choice experiments method and multiple programmes method By Mbolatiana RAMBONILAZA (ADER CEMAGREF); Patrick POINT (GREThA); Jeanne DACHARY-BERNARD (ADER CEMAGREF)
  22. Tree Cover Loss in El Salvador's Shade Coffee Areas By Blackman, Allen; Ávalos Sartorio, Beatriz; Chow, Jeffrey

  1. By: Fei Teng (Tsinghua University); Alun Gu (Tsinghua University)
    Abstract: Climate Change poses a wide range of potentially very severe threats in China. This aggravates the existing vulnerability of China and is one of the big challenges faced by the Chinese government. Adaptation programmes and projects are being developed and implemented at national and local level. As China is engaged in heavy investment in infrastructure development as a consequence of the rapid process of development and urbanization, mainstreaming adaptation into such development process is a priority for China. China has also made positive contributions to reducing greenhouse gas emissions through participations in the CDM under the Kyoto Protocol framework. Although mitigation is not a priority at national or local level, it has been integrated into national and local development plans explicitly. This paper addresses the following questions: What is the policy space for climate change mitigation and adaptation policy at national and local level and what is already being done? The three case studies at local level - Beijing, Guangdong and Shanghai – presented here, highlight the local benefits in terms of local pollution of integrating mitigation policies into local development. However, financial constraints usually prevent such a positive policy integration. National policies and international cooperation aiming at bridging the financial gap and promoting technology transfer would help in integrating local pollution control and mitigation efforts in China today.
    Keywords: Climate Change, Local Policy, National Policy, Mitigation, Local Pollution
    JEL: H7 Q54 Q56 O53
    Date: 2007–07
  2. By: Blackman, Allen (Resources for the Future); Lahiri, Bidisha; Pizer, William A. (Resources for the Future); Planter, Marisol Rivera; Piña, Carlos Muñoz
    Abstract: Because conventional command-and-control environmental regulation often performs poorly in developing countries, policymakers are increasingly experimenting with alternatives, including state-sponsored voluntary regulatory programs that provide incentives, but not mandates, for pollution control. Although the literature on this trend is quite thin, research in industrialized countries suggests that voluntary programs are sometimes ineffective because they mainly attract relatively clean participants seeking to free-ride on unrelated pollution control investments. We use plant-level data on more than 60,000 facilities to identify the drivers of participation in the Clean Industry Program, Mexico’s flagship voluntary regulatory initiative. Our results suggest that the threat of regulatory sanctions drives participation in the program. Therefore, the program does appear to attract relatively dirty firms. We also find that plants that sold their goods in overseas markets and to government suppliers, used imported inputs, were relatively large, and were in certain sectors and states were more likely to participate in the program, all other things equal.
    Keywords: voluntary environmental regulation, duration analysis, Mexico
    JEL: Q56 Q58 O13 O54 C41
    Date: 2007–07–11
  3. By: Christoph Heinzel (Department of Economics, Dresden University of Technology); Ralph Winkler (Center of Economic Research (CER-ETH) at ETH Zurich)
    Abstract: In a dynamic general equilibrium model we study the interplay between gradual and structural change in the transition to a low-carbon energy industry. We focus on the welfare-theoretic consequences of diverging social and private rates of time preference and a time-to-build feature in capital accumulation. Both features are particularly important in the transformation of energy systems. We show that only a combination of environmental and technology policies can achieve a socially optimal transition. We thus provide a new reason for environmental regulation to be complemented by technology policy such as a non-distortionary investment subsidy.
    Keywords: environmental and technology policy, social vs. individual rates of time preference, time to build, gradual vs. structural technological change, energy industry
    JEL: H23 Q48 H43
    Date: 2007
  4. By: David Zilberman (Department of Agricultural and Resource Economics, University of California at Berkeley); Leslie Lipper (Agricultural and Development Economics Division, Food and Agriculture Organization); Nancy McCarthy (International Food Policy Research Institute Washington, D. C.)
    Abstract: Paying for the provision of environmental services is a recent policy innovation that is attracting much attention in both developed and developing countries. The innovation involves a move away from command and control environmental policies, harnessing market forces to obtain more efficient environmental outcomes. Linking payments for environmental services (PES) to economic development and poverty reduction is an issue of importance since they may represent a new source of finance to developing countries, and developing countries are potentially important suppliers of global environmental services. The objective of this paper is to apply economic concepts, particularly those from natural resource and environmental economics, to a wide range of issues associated with the introduction of ES programs in the context of economic development. We introduce a typology of ES based upon economic reasoning, showing that payments for ES provide a solution to externalities and public good problems within the bounds of political economic constraints. Secondly, we focus on the problem of who should pay for ES: to what extent are payments likely to be covered within a global framework rather within a national or regional framework? Third, we will turn to issues of program design. We present some answers to the questions of how to target payments to achieve their objectives efficiently, and what the implications of alternative design schemes are. In particular, we focus upon the equity implications of ES programs and how can they affect poverty alleviation. The final section addresses issues of monitoring and enforcement of ES contracts, and we summarize the key findings in the conclusion.
    Keywords: Environmental Services, Agricultural Development, Poverty Reduction, Natural Resource Management.
    JEL: Q01 Q24 O1 O13
    Date: 2006
  5. By: Macauley, Molly K. (Resources for the Future); Shih, Jhih-Shyang (Resources for the Future)
    Abstract: Governments investing in long-lead technology development programs face considerable uncertainty as to whether the investment eventually will “pay off” for the taxpayer. This paper offers a framework to inform long-lead technology investment. We extend the theory of quality-adjusted cost indices to develop a conceptually rigorous, but data parsimonious, means of estimating consumer benefits from a new technology. We apply this model to a possible future electricity generation technology, space solar power (SSP). The United States, Japan, and other governments have begun investing in SSP but lack the benefit of a relevant economic context for informed decisions. We frame and analyze the economic relationship between SSP and competing electricity generation technologies with respect to direct costs, environmental externalities, and reliability. We also explicitly incorporate uncertainty and consider differences in the resource endowments available to electricity markets by considering four distinct world geographic regions.
    Keywords: energy, environment, technological change, cost indices, space technology
    JEL: O3 Q2 Q4
    Date: 2007–06–21
  6. By: Paul Lanoie (IEA, HEC Montréal); Jérémy Laurent-Lucchetti; Nick Johnstone; Stefan Ambec
    Abstract: Jaffe and Palmer (1997) present three distinct variants of the so- called Porter Hypothesis. The “weak” version of the hypothesis posits that environmental regulation will stimulate certain kinds of environmental innovations. The “narrow” version of the hypothesis asserts that flexible environmental policy regimes give firms greater incentive to innovate than prescriptive regulations, such as technology-based standards. Finally, the “strong” version posits that properly designed regulation may induce cost-saving innovation that more than compensates for the cost of compliance. In this paper, we test the significance of these different variants of the Porter Hypothesis using data on the four main elements of the hypothesised causality chain (environmental policy, research and development, environmental performance and commercial performance). The analysis is based upon a unique database which includes observations from approximately 4200 facilities in seven OECD countries. In general, we find strong support for the “weak” version, qualified support for the “narrow” version, and qualified support for the “strong” version as well.
    Keywords: Porter hypothesis, environmental policy, innovation, environmental performance, business performance.
    JEL: L21 M14 Q52 Q55 Q58
    Date: 2007–06
  7. By: Thure Traber; Claudia Kemfert
    Abstract: Effects of renewable support legislation on electricity prices have been analyzed with a plethora of models. However, these models neglect at least one of the following aspects which we take into account in our analysis: oligopolistic market behavior of dominant firms, emission trading, restricted electricity trade and production capacities, and effects on producer prices and firm profits. In this paper we use the electricity market model EMELIE and decompose the impact of the feed-in of renewable energy in Germany into two effects: a substitution effect triggered by the displacement of conventional sources and a permit price effect induced via the ETS. We find that the renewable support increases consumer prices slightly by 0.1 Eurocent/kWh, while the producer price decreases by 0.4 Eurocent/kWh. In addition, emissions from electricity generation in Germany are reduced by 32 Mt CO2, but are hardly altered if we consider the European electricity sector in total. Finally, the profits of most firms are significantly reduced by the support policy unless the firms combine relatively carbon intensive production equipment with a loose connection to the German grid.
    Keywords: Value of a statistical life (VSL), compensating wage differentials, work accidents, job changes
    Date: 2007
  8. By: Roberto Roson (Fondazione Eni Enrico Mattei and Ca' Foscari University); Francesco Bosello (Fondazione Eni Enrico Mattei and University of Milan); Enrica De Cian (Fondazione Eni Enrico Mattei and School of Advanced Studies in Venice)
    Abstract: Future energy demand will be affected by changes in prices and income, but also by other factors, like temperature levels. This paper draws upon an econometric study, disentangling the contribution of temperature in the determination of the annual regional demand for energy goods. Combining estimates of temperature elasticities with scenarios of future climate change, it is possible to assess variations in energy demand induced (directly) by the global warming. We use this information to simulate a change in the demand structure of households in a CGE model of the world economy, in a set of assessment exercises. The changing demand structure triggers a structural adjustment process, influencing trade flows, regional competitiveness of industries and regions, and welfare. We also consider the possible existence of imperfect competition in the energy markets, analyzing the impact of changes in energy demand with an alternative model version, in which energy industries are modeled as Cournot oligopolies.
    Keywords: Climate Change, Energy, Computable General Equilibrium Models, Imperfect Competition
    JEL: D58 F12 Q43 Q54
    Date: 2007–07
  9. By: Ando, Amy; Harrington, Winston (Resources for the Future); McConnell, Virginia D. (Resources for the Future)
    Abstract: This paper compares an emissions fee on measured vehicle emissions rates to a mandatory regulation that requires all vehicles to maintain emissions below a minimum standard. We model the motorist’s decision under the fee policy and simulate the fee and regulatory policies using data from an emissions inspection program that includes test and repair information for more than 50,000 vehicles. Under ideal conditions with perfect information and no subsidies, the fee on emissions rates performs substantially better than the regulatory policy. When more realistic modeling of available information and market conditions are included, there is little difference in the cost and effectiveness of the fee and regulatory programs. In particular, we find that the ability of the polluter to assess the emissions and cost outcomes of is critical importance for the performance of the fee policy.
    Keywords: pollution fees, emissions control, vehicle pollution, inspection and maintenance
    JEL: Q52 Q53 Q58
    Date: 2007–06–06
  10. By: Paul Lanoie (IEA, HEC Montréal); Daniel Llerena
    Abstract: The conventional wisdom about environmental protection is that it comes at an additional cost on farmers imposed by the government, which may erode their global competitiveness. However, during the last decade, this paradigm has been challenged by a number of analysts. In particular, Porter (Porter, 1991; Porter and van der Linde, 1995) argues that pollution is often associated with a waste of resources (material, energy, etc.), and that more stringent environmental policies can stimulate innovations that may compensate for the costs of complying with these policies. In fact, there are many ways through which improving the environmental performance of a farm can lead to a better economic or financial performance, and not necessarily to an increase in cost. To be systematic, it is important to look at both sides of the balance sheet. Following the framework developed by Reinhardt (2000), Lankoski (2000, 2006), and Lanoie and Ambec (2007), we can argue, first, that a better environmental performance can lead to an increase in revenues through the following channels: i) a better access to certain markets; ii) the possibility to differentiate products and iii) the possibility to sell pollution-control technology. Second, a better environmental performance can lead to cost reductions in the following categories: iv) regulatory cost; v) cost of material, energy and services; vi) cost of capital, and vii) cost of labour. In this article, we want to evaluate how this framework is relevant for the agricultural sector. In other words, for each of the seven channels identified above [i) to vii)], we want to see how it can be applied to the agricultural sector, while presenting concrete illustrations under the form of short case studies. Although other authors have discussed the profitability of different new agro- environmental practices; to our knowledge, nobody has done it in such a systematic way as that presented here. Moreover, the concrete examples from France and Quebec that we present may inspire farmers who are still debating as to, whether or not, they should “green” their activities. We conclude that there are many opportunities to improve at the same time the environmental and the financial performance in the agricultural sector, but maybe less than in other sectors.
    Date: 2007–06
  11. By: Sterner, Thomas; Persson, U. Martin
    Abstract: The Stern Review has had a major influence on the policy discussion on climate change. One reason is that the report has raised the estimated cost of unmitigated climate damages by an order of magnitude compared to most earlier estimates, leading to a call for strong and urgent action on climate change. Not surprisingly, severe criticism has been levied against the report by authors who think that these results hinge mainly on the use of a discount rate that is too low. Here we discuss the Ramsey rule for the discount rates and its implications for the economics of climate change. While we find no strong objections to the discounting assumptions adopted in the Stern Review, our main point is that the conclusions reached in the review can be justified on other grounds than by using a low discount rate. We argue that nonmarket damages from climate change are probably underestimated and that future scarcities that will be induced by the changing composition of the economy and climate change should lead to rising relative prices for certain goods and services, raising the estimated damage of climate change and counteracting the effect of discounting. We build our analysis on earlier research (Hoel and Sterner 2007) that has shown that the Ramsey discounting formula is somewhat modified in a two-sector economy with differential growth rates. Most importantly, such a model is characterized by changing relative prices, something that has major implications for a correct valuation of future climate damages. We introduce these results into a slightly modified version of the DICE model (Nordhaus 1994) and find that taking relative prices into account can have as large an effect on economically warranted abatement levels as can a low discount rate.
    Keywords: discounting, relative prices, Ramsey, climate damage
    JEL: H43 Q32 Q54
    Date: 2007–07–09
  12. By: Stephane Hallegatte (CIRED - Centre international de recherche sur l'environnement et le développement - [CIRAD : UMR56][CNRS : UMR8568] - [Ecole des Hautes Etudes en Sciences Sociales][Ecole Nationale des Ponts et Chaussées][Ecole Nationale du Génie Rural des Eaux et des Forêts])
    Abstract: In the early stages of rebuilding New Orleans, a decision has to be made on the level of flood protection the city should implement. Such decisions are usually based on cost-benefit analyses. But in such an analysis, the results are contingent on a number of underlying assumptions and varying these assumptions can lead to different recommendations. Indeed, though a standard first-order analysis rules out category 5 hurricane protection, taking into account climate change and other human-related disruptions of environment, second-order impacts of large-scale disasters, possible changes in the discount rate, risk aversion and damage heterogeneity may make such a hurricane protection a rational investment, even if countervailing risks and moral hazard issues are included in the analysis. These results stress the high sensitivity of the CBA recommendation to several uncertain assumptions, highlight the importance of second-order costs and damage heterogeneity in welfare losses, and show how climate change creates an additional layer of uncertainty in infrastructure design that increases the probability of either under-adaptation (and increased risk) or over-adaptation (and sunk costs).
    Keywords: Cost-Benefit analysis; Hurricane risk; New Orleans; Climate change
    Date: 2007–07–22
  13. By: Gastón Giordana (LAMETA, Université Montpellier I); Marc Willinger (LAMETA, Université Montpellier I)
    Abstract: We evaluate the effectiveness of non optimal and temporally inconsistent incentive policies for regulating the exploitation of a renewable common-pool resource. The corresponding game is an N-person discrete-time deterministic dynamic game of T periods fixed duration. Three policy instruments with parameters that remain constant for the whole horizon are evaluated: a pigouvian tax (flat tax), an ambient tax (ambient flat tax) and an instrument combining the two previous ones (mixed flat instrument). We test in the lab the predictions of the model solved for 3 distinct behavioural assumptions: (a) sub-game perfection, (b) myopic behaviour, and (c) joint payoff maximization. We find that subjects behave myopically in the unregulated situation, which agrees with previous results in the literature. Conditional on predictions, the mixed flat instrument and the flat tax are the most effective policies in approaching the optimum extraction path. However, in absolute terms the ambient flat tax and the mixed flat instrument curb most significantly the mean extraction path towards the optimum path. Paradoxically, these instruments are the less efficient ones.
    Keywords: Policy Instruments, Renewable Common-pool Resources, Dynamic Externalities, Experimental Economics
    JEL: D9 D62 H23 H26 H30 Q20 Q28
    Date: 2007–07
  14. By: Arik Levinson (Department of Economics, Georgetown University)
    Abstract: Total pollution emitted by U.S. manufacturers declined over the past 30 years, while manufacturing output increased. This improvement must result from one of two trends: (1) change in production or abatement processes ("technology"); or (2) change in the mix of goods manufactured in the U.S, which itself may result from increased net imports of pollution-intensive goods ("international trade"). This paper first shows that most of the decline in pollution from U.S.manufacturing has been due to changing technology, rather than changes in the mix of goods produced, although the pace of that technological change has slowed over time. Second, the paper provides evidence that increases in net imports of pollution-intensive goods are too small to explain more than about half of the pollution reductions from the changing mix of goods produced in the U.S. Together, these two findings demonstrate that shifting polluting industries overseas has played at most a minor role in the cleanup of the U.S. manufacturing sector. Classification-JEL Codes: F14, F18, and F22
    Keywords: International Trade, Pollution Haven, Industrial Flight
    Date: 2007–07–05
  15. By: Lanoie, P.; Llerena, D.
    Abstract: Il est de coutume d'associer à la protection de l'environnement l'idée que l'intervention des pouvoirs publics représente uniquement des coûts supplémentaires pour les agriculteurs. Cependant, depuis quelques années, ce paradigme est remis en cause par de nombreuses études. Par exemple, Porter et van der Linde (Porter, 1991; Porter and van der Linde, 1995) considèrent que la pollution est souvent associée à une sous utilisation des ressources (matière première, énergie, etc.) et que l'existence de politiques environnementales plus strictes peut stimuler l'innovation et, par là même, aboutir à une compensation des coûts supportés par les entreprises régulées. En réalité, il existe de multiples canaux par lesquels une amélioration de la performance environnementale des exploitations agricoles peut aboutir à de meilleures performances économiques, ou en tout cas pas nécessairement à un accroissement des coûts d'exploitation. Pour être systématique, il faut examiner les impacts de la performance environnementale non seulement en termes de revenus additionnels, mais également en termes de réduction des coûts. En suivant le cadre d'analyse proposé par Reinhardt (2000), Lankoski (2000, 2006) et Lanoie et Ambec (2007), nous pouvons tout d'abord constater qu'une amélioration des performances environnementales peut induire un accroissement des recettes via trois canaux : i) l'accès à de nouveaux marchés,; ii) la possibilité de différencier les produits et iii) la possibilité de vendre des technologies environnementales. Par ailleurs, une meilleure performance environnementale peut également se traduire par une réduction des coûts dans les catégories suivantes : iv) coûts réglementaires; v) coûts des matières premières, des intrants et de l?énergie; vi) coût du capital et vii) coût du travail. L'objectif de cet article est d'appliquer ce cadre d'analyse au secteur agricole. Plus précisément, à l'aide d'illustration et d'études de cas, nous analysons pour chacun des sept points présentés ci-dessus les relations qui peuvent exister entre la performance environnementale des exploitations agricoles et leur performance économique. Si certains auteurs ont déjà étudié la rentabilité de différentes mesures ou techniques agro-environnementales, il n'existe pas à notre connaissance d'études systématiques. De plus, les exemples concrets d'expériences menées en France et au Québec montrent que la question de l'impact des pratiques environnementales sur la rentabilité des entreprises reste d'actualité, et que les approches proposées peuvent être une source d?inspiration pour les agriculteurs en réflexion quant à leur décision d?investir ou non en matière de protection de l'environnement.
    JEL: L21 M14 Q52 Q55 Q58
    Date: 2007
  16. By: Hanova, Jana; Dowlatabadi, Hadi; Mueller, Lynn
    Abstract: Climate stabilization requires greenhouse gas reductions (GHG) in excess of 60 percent. Ground source heat pumps (GSHPs) hold the promise of meeting heating and cooling loads much more efficiently than conventional technologies. The economic viability of their widespread adoption depends on the costs of energy. Their impact on GHG reduction depends on fuel choices both in electricity generation and on customers’ premises. In this paper, we provide a systematic assessment of the GHG reduction potential across Canada of GSHPs and the economic cost of achieving this reduction. Using province-level data on household fuel choices and energy use, we find that GSHP systems offer significant GHG reductions, as well as savings in operation and maintenance costs. However, high capital costs continue to limit market diffusion. We conclude with a review of the geological suitability of the five largest urban centers in Canada for GSHP installation. This analysis shows GSHPs to hold significant potential for substantial GHG reductions in Canada at a cost savings relative to conventional alternatives, with time horizons as short as seven years.
    Keywords: conservation, GHG mitigation, residential energy
    JEL: Q40 Q41 Q52
    Date: 2007–05–29
  17. By: Antonio Cabrales; Esther Hauk
    Abstract: We propose a theoretical model to explain empirical regularities related to the curse of natural resources. This is an explicitly political model which emphasizes the behavior and incentives of politicians. We extend the standard voting model to give voters political control beyond the elections. This gives rise to a new restriction into our political economy model: policies should not give rise to a revolution. Our model clarifies when resource discoveries might lead to revolutions, namely, in countries with weak institutions. Natural resources may be bad for democracy by harming political turnover. Our model also suggests a non-linear dependence of human capital on natural resources. For low levels of democracy human capital depends negatively on natural resources, while for high levels of democracy the dependence is reversed. This theoretical finding is corroborated in both cross section and panel data regressions.
    Date: 2007–06
  18. By: Adrian Smith (SPRU, University of Sussex); Florian Kern (SPRU, University of Sussex)
    Keywords: Discourse analysis, socio-technical transitions, ecological modernisation
    JEL: L5 N5 N7 Q2
    Date: 2007–06–01
  19. By: Georg Zachmann; Christian von Hirschhausen
    Abstract: This paper applies the literature on asymmetric price transmission to the emerging commodity market for EU emissions allowances (EUA). We utilize an error correction model and an autoregressive distributed lag model to measure the relationship between CO2 price changes and the development of wholesale electricity prices. Using data from the German market for electricity and EUAs, we find that the rising prices of EUAs have a stronger impact on wholesale electricity prices than falling prices -- the first empirical evidence of asymmetric cost passthrough for these new allowances.
    Date: 2007
  20. By: Gupta Anil K.
    Abstract: Having been a product of Agricultural University, I understand and empathize with the leaders of the universities about the problems they face. However, let us accept that the standards that were set decades ago can indeed be surpassed if only we would challenge the students to bring out the best in them. My one line summary of the problem is that we are not challenging the future leaders of our discipline strongly enough. Is it because rise in their expectations will create a stress on us or is it that we have learnt to be helpless? Isn’t it ironic that in almost no agricultural university, a graduate or postgraduate is not required to take any course in entrepreneurship? The universities seem to be locked up in the paradigm of seventies.
    Date: 2007–07–18
    Abstract: This paper is part of an investigation to evaluate the benefits of landscape policies. Such policies are, within a specific area (here the Monts d’Arrée in Brittany), favouring some landscape attributes. We test out a procedure based on a double device. The first one relies on the choice experiments method and focuses on each attribute. Without prior information about the presence of substitution and complementarity effects between attributes, we work on the basis of scenarios built to ensure the independence of attributes. The important question of the impact of an attribute variation on the aesthetic value of another one, when these attributes are jointly perceived, is tackled by use of the multi-programme method. The two surveys were launched after an interval of one year, sampling among the same population. The WTP results obtained from each method are not statistically different.
    Keywords: Valuation; choice modelling; multi-attributes choice set; multi-programme method; choice experiments; landscape; Monts d’Arrée
    JEL: Q51 D61 R52
    Date: 2007
  22. By: Blackman, Allen (Resources for the Future); Ávalos Sartorio, Beatriz; Chow, Jeffrey (Resources for the Future)
    Abstract: Shade coffee farms in Central America provide important ecological services. But because international coffee prices have fallen since 1990, many have been cleared to make way for more remunerative land uses. This problem is of particular concern in heavily deforested El Salvador, where a large share of the remaining tree cover is associated with shade coffee. We use satellite images, stakeholder interviews, and secondary data to analyze the magnitude, characteristics, and drivers of clearing in El Salvador’s shade coffee areas during the 1990s. We find that 13 percent of these areas was cleared, mostly in middle- and high-altitude regions. Falling coffee prices were not the only drivers of this phenomenon, however: a downward spiral of on-farm investment and yields, debt, poverty, urbanization, migration, and weak land use regulation also contributed. Our findings suggest that stricter enforcement of land use and land cover regulations is urgently needed to prevent further clearing.
    Keywords: shade coffee, land use, land cover, deforestation, El Salvador
    JEL: Q15 Q17 Q18 Q23
    Date: 2007–05–15

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