nep-env New Economics Papers
on Environmental Economics
Issue of 2007‒12‒01
twenty papers chosen by
Francisco S.Ramos
Federal University of Pernambuco

  1. Europäischer Handel mit Treibhausgasemissionszertifikaten und seine Umsetzung in das deutsche Umweltrecht By Fritz Rahmeyer
  2. Mitigation of CO2 emissions in 2020 : impacts of the " 20/20/20 " European policy By Loreta Stankeviciute
  3. Optimal Monitoring to Implement Clean Technologies when Pollution is Random By Ines Macho-Stadler; David Perez-Castrillo
  4. Consumerism and environment: does consumption behaviour a_ect environmental quality? By ORECCHIA CARLO; ZOPPOLI PIETRO
  5. Could payments for environmental services improve rangeland management in Central Asia, West Asia and North Africa?: By Dutilly-Diane, Celine; McCarthy, Nancy; Turkelboom, Francis; Bruggeman, Adriana; Tiedemann, James; Street, Kenneth; Serra, Gianluca
  6. Open-Access Losses and Delay in the Assignment of Property Rights By Gary D. Libecap
  7. Voluntary Provision of Public Goods for Bads: A Theory of Environmental Offsets By Matthew J. Kotchen
  8. The determinants of allowance prices in the European Emissions Trading Scheme - Can we expect an efficient allowance market 2008? By Wilfried Rickels; Vicki Duscha; Andreas Keller; Sonja Peterson
  9. Technology, International Trade, and Pollution from U.S. Manufacturing By Arik Levinson
  10. Managing the Economic Impacts of Mountain Pine Beetle Outbreaks in Alberta By Blake Phillips; James Beck Jr.; Trevor Nickel
  11. The General Equilibrium Incidence of Environmental Mandates By Don Fullerton; Garth Heutel
  12. Conflict and Production: An Application to Natural Resources By Wick, Katharina
  13. A SURVEY OF THE ROMANIAN ENVIRONMENTAL FUND By Dănuleţiu, Dan-Constantin; Teiuşan, Sorin-Ciprian
  14. Lutte contre le changement climatique : les instruments économiques By Patrick Criqui
  15. Consumers and Food Miles By Sirieix, L.; Grolleau, G.; Schaer, B.
  16. Le commerce international comme stratégie d'adaptation à la rareté des ressources hydriques ? Utilité et application du concept de " commerce d'eau virtuelle " en Afrique du Nord. By Nathalie Rousset
  17. Quels leviers pour gérer les biens publics ? By Patrick Criqui
  18. Pesticides And Farmer Health In Nicaragua: A Willingness To Pay Approach By Garming, Hildegard; Waibel, Hermann
  19. Le sorgho de décrue dans la vallée du Sénégal By Xavier Le Roy
  20. Beyond group ranch subdivision: collective action for livestock mobility, ecological viability, and livelihoods By BurnSilver, Shauna; Mwangi, Esther

  1. By: Fritz Rahmeyer (University of Augsburg, Department of Economics)
    Abstract: With coming into force of the Directive 2003/87/EU of the European Parliament and of the Council greenhouse gas emission allowance trading within the community (EU ETS) has begun in 2005. Emission trading is a flexible instrument to abate emissions within the framework of the Kyoto-Protocol. Up to this time command-and-control regulations and national emission or energy taxes were predominant within environmental policy. The German Pollution Protection Law (Bundesimmissionsschutzgesetz) and emission trading were incompatible. As a result the EU-Directive released approved industrial installations, which take part in emission allowance trading, from fulfilling their duty to keep marginal emission values. It is the purpose of this paper to present and elucidate the sectoral system of emission allowance trading according to the EU-Directive and its legal consequences. To start with integral parts of the science and the economics of climate change are subjects under debate. In particular the discounting of future damage costs is looked at. After that the political architecture of climate-change policy and its instruments is dealt with in detail. In the following the broadening of the established German Pollution Protection Law with regard to the EU-Directive is in the fore, besides that the national rules of allocation of EU emission allowances to entitled enterprises.
    Keywords: climate policy, emission trading, environmental law, national allocation plan
    JEL: Q54 Q58
    Date: 2007–11
  2. By: Loreta Stankeviciute (LEPII - Laboratoire d'Économie de la Production et de l'Intégration Internationale - CNRS : UMR5252 - Université Pierre Mendès-France - Grenoble II)
    Abstract: The study aims to quantify the interactions between the three European objectives in the horizon of 2020: (1) the reduction of 20% of greenhouse gas emissions (GHG) (2) the saving of 20% of the energy consumption and (3) the share of 20% of renewables energies in the overall energy consumption. Particular focus is, however, placed on the influence of the environmental policies on the<br />CO2 emission reduction and the carbon price in 2020.<br />The national objectives for the energy savings and renewables energies in our study are realized with the quota systems in every country: white and green certificate systems, while the CO2 emission reduction is carried out at the European level within the ETS in the<br />context of international carbon market. In order to exploit the interactions among the different<br />environmental policies, a number of scenarios are tested within a combination of two powerful<br />modeling tools: POLES world energy model and ASPEN, dedicated for the analysis of quota systems.<br />The paper shows, in particular, that the order of environmental policies does not affect significantly the reduction of emissions and the carbon price. On the other hand, the presence of these policies diminishes highly the marginal European reduction cost and, consequently, the compliance costs for ETS participants.
    Keywords: CO2 emissions ; carbon price ; white certificate price ; green certificate price ; European objectives in 2020
    Date: 2007–11
  3. By: Ines Macho-Stadler (Universitat Autonoma de Barcelona); David Perez-Castrillo (Universitat Autonoma de Barcelona)
    Abstract: We analyze environments where firms chose a production technology which, together with random events, determines the final emission level. We consider the coexistence of two alternative technologies. The cost of the adoption of the clean technology and the actual emissions are firms' private information. The environmental regulation is based on taxes over reported emissions, and on monitoring and penalties over unreported emissions. We show that the optimal monitoring is a cut-off policy, where all reports below a threshold are inspected with the same probability, while reports above the threshold are not monitored. We show that if the adoption of the technology is firms' private information, too few firms will adopt the clean technology under the optimal monitoring policy. However, when the EA can check the technology adopted by the firms, the optimal policy may induce overswitching or underswitching to the clean technology.
    Keywords: Production technology, random emissions, environmental taxes, optimal monitoring policy.
    JEL: K32 K42 D82
    Date: 2007–11
    Abstract: The literature has typically expressed environmental quality as a function of per capita income ignoring the role consumption choices can play as a potential mediating factor between environmental degradation and economic growth. Consumption can affect the environment in many ways: higher levels of consumption (and therefore higher levels of production) require larger inputs of energy and material and generate larger quantities of waste byproducts. Increased extraction and exploitation of natural resources, accumulation of waste and concentration of pollutants can damage the environment and, on the long run, limit economic activity. Rebus sic stantibus, consumerism, a term used by sociologists to describe the effects of equating personal happiness with purchasing material possessions, can even do worse as long as it determines an increase in the amount of purchased goods. The object of this article is to analyse the relationship between consumerism and environment. We critically review the empirical findings of the Environmental Kuznets Curve literature, according to which an inverted U-relationship between environmental degradation and economic growth is observed. In particular, we focused our attention on consumption-based approaches to the income-environment relation in order to better identify the impact of consumerism on the environment. We finally suggest a possible specification and estimation of a reduced form equation relating several impact indicator to consumption per capita.
    Date: 2007–11
  5. By: Dutilly-Diane, Celine; McCarthy, Nancy; Turkelboom, Francis; Bruggeman, Adriana; Tiedemann, James; Street, Kenneth; Serra, Gianluca
    Abstract: "Although several institutional and management approaches that address the degradation of the rangelands have been tested in the dry areas of Central and West Asia and North Africa (CWANA), impact has been limited. Nonetheless, the development of National Action Plans to combat desertification highlights the interest of governments to tackle this issue. Payment for Environmental Services (PES) may be a viable policy option, though, to date, most PES programs have focused on the management of different resources (forests, watersheds). The purpose of this paper is to examine whether PES could be a viable option to promote sustainable rangelands management in the dry rangelands of CWANA. Specifically, it focuses on the scientific gaps and knowledge related to the local and global environmental services produced by rangelands and addresses questions related to the beneficiaries of these services. Institutional conditions necessary for the implementation of such schemes are discussed." Authors' Abstract
    Keywords: Environmental services, Environmental management,
    Date: 2007
  6. By: Gary D. Libecap
    Abstract: Even though formal property rights are the theoretical response to open access involving natural and environmental resources, they typically are adopted late after considerable waste has been endured. Instead, the usual response in local, national, and international settings is to rely upon uniform rules and standards as a means of constraining behavior. While providing some relief, these do not close the externality and excessive exploitation along unregulated margins continues. As external costs and resource values rise, there finally is a resort to property rights of some type. Transfers and other concessions to address distributional concerns affect the ability of the rights arrangement to mitigate open-access losses. This paper outlines the reasons why this pattern exists and presents three empirical examples of overfishing, over extraction from oil and gas reservoirs, and excessive air pollution to illustrate the main points.
    JEL: N4 N5 Q2 Q28 Q3 Q38 Q5
    Date: 2007–11
  7. By: Matthew J. Kotchen
    Abstract: This paper examines voluntary provision of a public good that is motivated, in part, to compensate for other activities that diminish the public good. Markets for environmental offsets, such as those that promote carbon neutrality to minimize the impact of climate change, provide an increasingly salient example. An important result, related to one shown previously, is that mean donations to the public good do not converge to zero as the economy grows large. Other results are new and comparable to those from the standard model of a privately provided public good. The Nash equilibrium is solved explicitly to show how individual direct donations and net contributions depend on wealth and heterogenous preferences. Comparative static analysis demonstrates how the level of the public good and social welfare depend on the technology, individual wealth, and an initial level of the public good. Application of the model in an environmental context establishes a starting point for understanding and making predictions about markets such as those for carbon offsets.
    JEL: H0 H41
    Date: 2007–11
  8. By: Wilfried Rickels; Vicki Duscha; Andreas Keller; Sonja Peterson
    Abstract: The European emissions trading scheme (EU-ETS) for CO2 is the largest existing emissions trading scheme in the world. The main reason for the implementation of this scheme is to reach the European Kyoto targets at minimal cost and to establish a price for emissions. The right to emit CO2 therefore becomes a scarce production input. In this paper we want to analyze the determinants of the price for allowances in the EU-ETS and study whether it reacts to fundamental influence factors such as energy prices. The results show, that as long as the market viewed the allowances as a scarce input factor, the price reacts to changes in energy prices and weather variations.
    Keywords: European Emissions Trading Scheme, allowance prices, energy prices, weather variation
    JEL: C22 Q56 Q58 Q54
    Date: 2007–11
  9. By: Arik Levinson
    Abstract: Total pollution emitted by U.S. manufacturers declined over the past 30 years by about 60 percent, even though real manufacturing output increased 70 percent. This improvement must result from a combination of two trends: (1) changes in production or abatement processes ("technology"); or (2) changes in the mix of goods manufactured in the United States, which itself may result from increased net imports of pollution-intensive goods ("international trade"). I first show that most of the decline in pollution from U.S. manufacturing has been the result of changing technology, rather than changes in the mix of goods produced, although the pace of that technology change has slowed over time. Second, I present 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 United States. Together, these two findings demonstrate that shifting polluting industries overseas has played at most a minor role in the cleanup of U.S. manufacturing.
    JEL: D57 F18 Q55 Q56
    Date: 2007–11
  10. By: Blake Phillips; James Beck Jr.; Trevor Nickel
    Abstract: Output from the SELES MPB Landscape Scale Mountain Pine Beetle Model (Fall et al., 2004) was utilized to estimate potential mountain pine beetle spread rates within the Hinton Wood Products Forest Management Area (HFMA) of the Foothills Model Forest. From the SELES model output three spread rate scenarios were hypothesized. Scenario 1 hypothesized a Mountain Pine Beetle (MPB) spread rate slower than the rate estimated by the SELES MPB Model. Within Scenario 1, current Annual Allowable Cut (AAC) levels were hypothesized to be adequate to harvest MPB damaged lodgepole pine stands. Scenario 2 hypothesized that spread rates would be consistent with the recommended run from the SELES MPB Model, resulting in attack of the majority of the stands within the HFMA within 29 years. Scenario 3 hypothesized that spread rates would be higher than estimated by the SELES MPB Model, resulting in attack of the majority of lodgepole pine stand in the HFMA in 20 years (Scenario 3.1) or 10 years (Scenario 3.2). The even flow harvest rates required to utilize commercially viable stands attacked by MPB were determined (Surge Period). The modeling program Forest Muncher was utilized to estimate the decrease in AAC which could result from succession / salvage harvest of the majority of lodgepole pine stands within the HFMA within each scenario (Post Surge Period). Based on these AAC estimates, the potential economic impact of MPB attack influenced AAC changes was examined utilizing output from the Computable General Equilibrium Framework (CGE) Model developed by Mike Patriquin and Bill White of the Canadian Forest Service (Patriquin et al., 2005). Scenario 1 had a nearly inappreciable impact on the economic indicators for the forest industry or the total economy in the Foothills Model Forest Area. Within Scenario 2, forest industry revenue, royalties, labour income, and employment were estimated to increase by 40 – 50% during the Surge Period and decrease by 4.7– 6.0% in the Post Surge Period. Within Scenarios 3.1 and 3.2 forestry revenue, royalties, labour income and employment increases ranged from 70 – 90% for Scenario 3.1 and ranged from 160 – 210% for Scenario 3.2 during the Surge Period. Revenue, royalties, labour income and employment in the forest industry were estimated to decrease by 6 – 9% within the Post Surge Periods of Scenarios 3.1 and 3.2. Economic, forest industry capacity, social and environmental factors which may limit the feasibility of large scale salvage of mountain pine beetle damaged stands are discussed within the report.
    Keywords: Mountain pine beetle--Alberta--Case studies, Mountain pine beetle--Economic aspects--Alberta--Case studies, Forest management--Alberta--Case studies, Foothills Model Forest
    JEL: Q57
    Date: 2007–03
  11. By: Don Fullerton; Garth Heutel
    Abstract: Regulations that restrict pollution by firms also affect decisions about use of labor and capital. They thus affect relative factor prices, total production, and output prices. For non-revenue-raising environmental mandates, what are the general equilibrium impacts on the wage, the return to capital, and relative output prices? Perhaps surprisingly, we cannot find any existing analytical literature addressing that question. This paper starts with the standard two-sector tax incidence model and modifies one sector to include pollution as a factor of production that can be a complement or substitute for labor or for capital. We then look not at taxes but at four types of mandates, and for each mandate determine conditions that place more of the burden on labor or on capital. Stricter regulation does not always place less burden on the factor that is a better substitute for pollution. Also, a relative restriction on the amount of pollution per unit of output creates an "output-subsidy effect" on factor prices that can offset and reverse the traditional output effect and substitution effect. An analogous effect is found for a relative restriction on pollution per unit of capital.
    JEL: H23 L51 Q52
    Date: 2007–11
  12. By: Wick, Katharina
    Abstract: We present a Stackelberg model of conflict, in which contestants have limited endowments to be put in two separate sectors, thus incorporating salient features of many conflicts. The model is applied to the case of conflict over natural resources. Consistent with amounting empirical evidence regarding a so-called "resource curse", we find that the relation between conflict intensity and resource rents is non-monotonous, and that the economy's income growth rate may be negatively affected by resource abundance.
    Keywords: Resource curse, exhaustible resources, civil war, economic performance and resources
    JEL: D74 O13 Q32
    Date: 2007
  13. By: Dănuleţiu, Dan-Constantin; Teiuşan, Sorin-Ciprian
    Abstract: The environment protection is considered to be a legitimate domain of the national policies in Romania since 1990, when the former Ministry of Environment appeared. Later on, the Environment Security National Strategy had been elaborated, being considered the first official document establishing the national objectives of that specific field. But the environment policies will be highly developed starting with 2000, when Romania’s preparation to join the European Union started; and this flourishing flow will take place according to European Union’s elaborated strategy regarding the candidate states within Agenda 2000. Due to the complexity of concerns on the EU acquis in the environment security field, Romania obtained a series of transition steps necessary for the high costs. Therefore, our country created the Environment Funds, namely an economic-financial tool designated to sustain and develop the environment protection projects. The present paper aims to present and analyze the way of creating, managing and using this fund from the perspective of the accomplished goals. So, there are brought into play the modalities and income sources of the Romanian Environmental Fund, the contributions paid to the fund and their payers. The environment protection projects financed by this fund, the norms required and the rewarded fields of this domain are also taken into consideration. In the end, there are exposed some measures that should be taken in order to determine a more active involvement of the potential beneficiaries in accessing grants financed by the Environmental Fund.
    Keywords: environmental fund; polluter pays principle; financing sources; environment protection projects
    JEL: Q50 K32 G38 H23 Q58
    Date: 2007–11–30
  14. By: Patrick Criqui (LEPII - Laboratoire d'Économie de la Production et de l'Intégration Internationale - CNRS : UMR5252 - Université Pierre Mendès-France - Grenoble II)
    Abstract: Pour lutter contre le changement climatique, les pouvoirs publics devront programmer une hausse progressive du prix des énergies fossiles, émettrices de gaz à effet de serre.
    Date: 2007–07
  15. By: Sirieix, L.; Grolleau, G.; Schaer, B.
    Abstract: Previous research has extensively studied environmental implications of conventional and globalized food supply chain. Local food supply chains are supposed to reduce the environmental impacts of "food miles", the distance that foodstuff travels between the production location and the consumption marketplace. However, if researchers, environmental decision-makers and activists are convinced of the importance of 'food miles', there is a lack of understanding about whether and how end consumers perceive food miles. This paper therefore fills this gap by investigating the perceptions of food miles by French consumers. The first section explores the different types of distances between food and consumers. The second section presents the results of a qualitative study conducted in France. Two sessions of focus groups were held to better understand consumers' perceptions of food miles. Results show that most consumers are not aware of food miles. Focus groups were followed by individual interviews with the particular group of local organic food consumers, supposed to be more environmentally concerned than others. Again, results show that most consumers buy and consume local food for other reasons than reducing food miles. The third section deals with the reasons why consumers do not seem concerned by food miles, and discusses the concepts of "bliss ignorance", perceived efficiency, and social dilemmas. ...French Abstract : Les études sur les conséquences de la globalisation des filières agro-alimentaires sur l'environnement se multiplient, et les réseaux alternatifs locaux ayant pour but de réduire les intermédiaires entre les producteurs et les consommateurs sont présentés comme permettant un retour à une agriculture et un système de consommation durables. Plus précisément ces réseaux ont, entre autres, pour but de réduire l'impact environnemental des "food miles", ou distance parcourue par les produits alimentaires entre le lieu de production et les lieux de consommation. Ce concept de "food miles" est utilisé comme un indicateur de développement durable et de plus en plus comme un outil de communication à destination des consommateurs. Cependant, si les chercheurs, décideurs ou activistes dans le domaine de l'environnement semblent convaincus de l'importance des "food miles", aucune étude n'a été menée afin de savoir si et comment les consommateurs perçoivent les "food miles" et sont susceptibles d'en tenir compte dans leur processus de choix des produits. C'est donc l'objet de cet article, qui s'attache à mettre en évidence les perceptions des food miles par les consommateurs en France grâce à une étude qualitative. La première partie présente les différents types de distance perçue entre les consommateurs et les produits alimentaires. Cette distance perçue peut favoriser un certain désintérêt de la part des consommateurs vis à vis des produits alimentaires et de la façon dont ils sont produits ; à l'opposé elle peut être à l'origine de préoccupations croissantes -environnementales, sociales ou plus individuelles telles que les préoccupations santé- et expliquer le besoin de re-créer des liens perdus avec les produits et les producteurs.
    JEL: D1 D8 M31 Q01
    Date: 2007
  16. By: Nathalie Rousset (LEPII - Laboratoire d'Économie de la Production et de l'Intégration Internationale - CNRS : UMR5252 - Université Pierre Mendès-France - Grenoble II)
    Abstract: Les prospectives sur le changement climatique amplifient les risques déjà lourds qui pèsent sur les ressources hydriques et les capacités agricoles au sud de la Méditerranée. Ce papier analyse la portée méthodologique du concept de " commerce d'eau virtuelle " en quantifiant le contenu en eau du commerce international des produits agricoles des pays d'Afrique du Nord. Il montre aussi sa pertinence en tant qu'outil stratégique susceptible de structurer les stratégies d'adaptation à la rareté croissante de l'eau et les politiques commerciales dans la région.
    Date: 2007–10–19
  17. By: Patrick Criqui (LEPII - Laboratoire d'Économie de la Production et de l'Intégration Internationale - CNRS : UMR5252 - Université Pierre Mendès-France - Grenoble II)
    Abstract: Il est devenu classique en économie publique de proposer des outils, qui contribuent à redonner un prix d’accès à un bien public qui n’en a pas spontanément. Ces outils sont les taxes, les quotas, et les « politiques et mesures ». Cet article montre comment il est possible de combiner ces outils dans le cas très actuel de la réduction des émissions de gaz à effet de serre au plan mondial.
    Date: 2007–08
  18. By: Garming, Hildegard; Waibel, Hermann
    Abstract: This study presents an economic valuation of health risks of pesticides among Nicaraguan vegetable farmers. A comprehensive valuation of market and non-market value components of human health is established through farmers’ willingness to pay (WTP) for low toxicity pesticides. Results show, that farmers are willing to spend about 28% of current pesticide expenditure for avoiding health risks. The validity of results is established in scope tests and a two-step regression model. WTP depends on farmers’ experience with poisoning, income variables and pesticide exposure. The results can help in targeting of rural health policies and the design of programmes aiming to reduce negative effects of pesticides.
    Keywords: Health risks of pesticides, Contingent Valuation, Nicaragua
    Date: 2007
  19. By: Xavier Le Roy (Dynamiques environnementales entre forêt, agriculture et biodiversité : des pratiques locales sur la nature aux politiques de conservation - IRD : UR168)
    Abstract: Quelle est la singularité du sorgho de décrue dans la vallée du fleuve Sénégal ? Permettant une utilisation différée de l’abondance en eau, il se distingue d’autres contextes par l’absence de repiquage et par un cycle cultural exclusivement en saison sèche. Cette pratique millénaire semble échapper aux mutations agraires, reflétant une stricte hiérarchie sociale et observant un itinéraire technique immuable. Alors que vingt années de sécheresse et l’introduction de l’agriculture irriguée semblaient le condamner, le sorgho de décrue ressurgit en 1994, démontrant l’attachement des populations de la moyenne vallée à cette production sans risque économique. Toutefois, la mise en route des turbines au barrage de Manantali accentue l’incertitude et la variabilité qui les caractérisent les cultures de décrue.
    Date: 2007–10–15
  20. By: BurnSilver, Shauna; Mwangi, Esther
    Abstract: "This paper leverages datasets and results from two separate studies carried out across eight Kajiado group ranches and offers a unique opportunity to look at emergent pre- and postsubdivision trends from an interdisciplinary framework that combines ecological, political, and human-ecological research perspectives. It provides insights into the following issues: the loss of flexibility and mobility for Maasai herders' dues to subdivision, the nature of collective activities that individuals pursue after subdivision, and the emergence of pasture sharing arrangements. NDVI profiles show that forage options for individual herders decrease dramatically under privatization, but rebound somewhat when parcels are shared between households located adjacent to each other. Interviews show that households redistribute portions of their herds for long periods and swap/share pastures. Parcel sharing translates into more grazing flexibility, particularly when it occurs between households in different locations. The Maasai also continue to develop and finance collective structures for the provision and maintenance of boreholes, earthen dams, schools and health clinics. Although new economic innovation characterizes some of these strategies, most are grounded within traditional social networking mores. There is need for policy makers to support these efforts as they evolve." authors' abstract
    Keywords: Pastoralism, Group ranches, livestock, Rangelands, Collectiove resource management, Collective action,
    Date: 2007

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