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on Environmental Economics |
| By: | Amihai Glazer (Department of Economics, University of California-Irvine); Stef Proost (Center for Economic Studies, KULeuven) |
| Abstract: | Given that it is difficult to monitor, and even more so to enforce, International Environmental Agreements, it is surprising that they are signed and implemented. This paper offers a theoretical model, which addresses the phenomena. The focus is on informational and coordination problems--a country which is unsure about the benefits of environmental policy may believe that the benefits are higher the greater the number of other countries which lean towards taking action. Whereas each country may individually take no environmental action, in equilibrium several countries may take environmental action if they expect others to. An International Environmental Agreement can thus be self-enforcing. Such effects can appear even if international environmental spillovers are absent, and even if monitoring and enforcement are infeasible. Our approach can explain additional phenomena: why a country that is known to care little about the environment may deeply influence other countries if it takes environmental action, why lags may appear between the signing of an agreement and its implementation, and how requirements for approval by several bodies within a country can increase support for environmental action. |
| Keywords: | Environmental policy; International agreements; Signaling; Regulation |
| JEL: | Q58 D82 L51 |
| Date: | 2008–02 |
| URL: | http://d.repec.org/n?u=RePEc:irv:wpaper:070810&r=env |
| By: | Maia David (INRA -); Bernard Sinclair-Desgagné (PREG - Pole de recherche en économie et gestion - CNRS : UMR7176 - Polytechnique - X) |
| Abstract: | NA |
| Keywords: | Subvention environnementale;Taxe pigouvienne;Eco-industrie |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:hal:papers:hal-00243054_v1&r=env |
| By: | Xavier Labandeira; José María Labeaga; Miguel Rodríguez |
| Abstract: | In this paper we present a microsimulation model to calculate the effects of a tax levied on Spanish energy-related CO2 (carbon dioxide) emissions in order to comply with EU (Kyoto-mandated) targets. The model uses the results of our prior estimation of a demand system with Spanish household data from 1973 to 1995, which is especially designed for simultaneous analysis of different energy goods. Our objective is to obtain in-depth information on the behavioural responses by different types of households, which will allow us to determine the welfare effects of tax-induced price changes, their distribution across society and the environmental consequences within the residential sector. The results show a significant response by households, sizeable emission reductions, important tax revenues, moderate welfare changes and distributional effects. The simulated policy can therefore be considered a feasible option for tackling some of the current and severe inefficiencies in Spanish energy and environmental domains. |
| Date: | 2008–01 |
| URL: | http://d.repec.org/n?u=RePEc:fda:fdaddt:2008-02&r=env |
| By: | Abay Mulatu |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:man:sespap:0803&r=env |
| By: | Geraint Johnes |
| Abstract: | The impact of environmental Kuznets curve (EKC) effects is evaluated in the context of a full model of production and trade within and between rich and poor economies. The shape of iso-emissions curves, defined in tariff and emissions tax space, is evaluated both in the presence and in the absence of an EKC. Gains in the income of developing countries are possible without compromising on emissions where there are inefficiencies in policy. However, where policy is efficient there exists an important trade-off, evaluated here, between emissions and developing country income. |
| Keywords: | Trade, Environment |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:lan:wpaper:005293&r=env |
| By: | Phu Nguyen Van (THEMA,CNRS and Université de Cergy-Pontise) |
| Abstract: | This paper proposes a semiparametric analysis for the study of the relationship between energy consumption per capita and income per capita for an international panel data. It shows little evidence for the existence of an environmental Kuznets curve for energy consumption. Energy consumption increases with income at an increasing rate for low income levels and then stabilizes for higher income levels. Changes in energy structure have no significant effect on energy consumption. |
| Keywords: | Energy consumption,environmental Kuznets curve,semiparametric panel model, nonparametric tests |
| JEL: | C14 C23 Q40 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ema:worpap:2008-03&r=env |
| By: | Otto, Daniel; Monchuk, Dan; Jintanakul, Kanlaya; Kling, Catherine L. |
| Abstract: | In a time of changing demographics, an increasing demand for renewable energy sources and a growing concern for the environment, policy makers in Iowa are faced with the challenge of identifying strategies for economic development that balances the needs of the changing population with economic and resource sustainability. |
| Date: | 2008–02–14 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genres:12869&r=env |
| By: | Chris Watson |
| Abstract: | This article briefly describes users’ experiences of two “green” education buildings. It goes on to conclude that stakeholders’ negotiation of building performance is necessary to minimise environmental impact, just as it is necessary to achieve other aspects of building performance. |
| Keywords: | sustainable development, evaluation, educational buildings, school infrastructure |
| Date: | 2007–09 |
| URL: | http://d.repec.org/n?u=RePEc:oec:eduaaa:2007/12-en&r=env |
| By: | Pasquale Lucio Scandizzo (University of Tor Vergata, Dept. SEFEMEQ, Faculty of Economics); Marco Ventura (ISAE - Institute for Studies and Economic Analyses) |
| Abstract: | In this paper we use the Contingent Evaluation methodology to develop an economic evaluation of natural resources in a protected marine area of Sicily. Assuming a non-Normal distribution for the ML estimation, the paper shows that a variant of the stochastic utility model appears to capture well the dependence of the willingness to pay (WTP) on the socioeconomic characteristics of a sample of stakeholders of the natural resources in question. The estimates obtained are consistent and robust across different policy measures, no embedding or sequencing effects emerge and option values appear also to have been elicited in a consistent way. Once these values are added to the basic WTP, the income elasticities estimated fall in the range reported by other studies. |
| Keywords: | environment, option value, contingent valuation, legal constraints. |
| JEL: | Q22 Q28 |
| Date: | 2008–01 |
| URL: | http://d.repec.org/n?u=RePEc:isa:wpaper:91&r=env |
| By: | Carlsson, Fredrik (Department of Economics, School of Business, Economics and Law, Göteborg University); García, Jorge H. (Department of Economics, School of Business, Economics and Law, Göteborg University); Löfgren, Åsa (Department of Economics, School of Business, Economics and Law, Göteborg University) |
| Abstract: | We test the hypothesis that people conform to certain social norms, i.e. that some individuals may be willing to pay a higher price premium for green products the more widespread green consumerism is in society. To investigate consumer preferences for environmentally friendly products, we conducted a choice experiment where the respondents were asked to choose among coffee products varying with respect to their share of ecological beans, share of fair trade beans, and price. Three treatments were used, differing only in the information given about the choices made by other consumers. More specifically, the respondents in the three subgroups were told that 10%, 50%, and 90% of all other consumers chose the alternative with 100% ecological beans. We find different responses to the treatments across individuals. In particular, we can only confirm our hypothesis of conformity for women, although men appear to have stronger preferences for ecological coffee than women.<p> |
| Keywords: | Conformity; Choice Experiments; Environmental Goods |
| JEL: | C90 D12 |
| Date: | 2008–02–13 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0286&r=env |
| By: | Andrew Reeson (CSIRO Sustainable Ecosystems, Australia) |
| Abstract: | In economic terms, the environment is largely a public good. Contributing to a public good is costly to an individual, while the benefits are enjoyed by all. Despite this, many people voluntarily contribute to public goods, both in laboratory economic experiments and through day-to-day environmental decisions. These voluntary contributions are largely motivated intrinsically, that is satisfaction comes from the act itself rather than external rewards. Policy interventions are often required to increase the provision of public goods to the socially optimal level, which usually take the form of extrinsic incentives such as payments or regulations. Theoretical and empirical evidence from psychology and economics suggests that such extrinsic incentives can crowd out the intrinsic motivations which underlie voluntary contributions. As a result, a policy may have less than the anticipated impact. It is even possible for a costly policy intervention to lead to a decrease in overall public good provision, as individuals cease to contribute voluntarily. This paper argues that environmental policy design should proceed with caution in the presence of intrinsic motivations. Weak regulations and small, competitive financial incentives have the greatest potential for negative effects. Recognising and supporting existing efforts can crowd in, rather than crowd out, voluntary contributions. With careful design and implementation, there is the potential to maintain and support intrinsic motivations while also providing robust extrinsic incentives. |
| Keywords: | public goods; environmental policy; intrinsic motivation; crowding out |
| JEL: | H4 Q0 |
| Date: | 2008–01 |
| URL: | http://d.repec.org/n?u=RePEc:cse:wpaper:2007-11&r=env |
| By: | Charles Raux (LET - Laboratoire d'économie des transports - CNRS : UMR5593 - Université Lumière - Lyon II - Ecole Nationale des Travaux Publics de l'Etat) |
| Abstract: | Les avantages théoriques des marchés de permis montrent leur pertinence pour limiter les émissions de CO2 des transports. Ce type d’instrument permet d’atteindre l’objectif quantitatif de limitation des émissions à moindre coût, et assure, à travers l’allocation initiale des quotas, la séparation entre les questions d’efficacité et celles, plus complexes, d’équité.<br />L’équivalence entre contenu en carbone du carburant consommé et CO2 émis, permet de concevoir des systèmes simples où l’unité d’échange est le permis attaché à chaque litre de carburant consommé. La décentralisation des permis au niveau des consommateurs finaux de carburant crée de fortes incitations à la réduction des consommations, du fait de l’avantage palpable perçu par ceux qui réduiront leurs émissions au-delà de leur allocation initiale.<br />Pour les automobilistes, l’allocation gratuite des permis favoriserait l’acceptabilité du système de quotas contrairement à une nouvelle taxe grevant le carburant déjà lourdement taxé. Pour le transport de marchandises, les quotas ne pourraient pas être alloués gratuitement et seraient vendus aux chargeurs par une autorité régulatrice. Une allocation forfaitaire annuelle par véhicule serait attribuée aux transporteurs pour en améliorer l’acceptabilité. |
| Keywords: | Marchés de permis d'émission négociables ; redevance de pollution ; quotas d'émission de CO2 ; politique de l'environnement (aspect économique) ; permis et obligations négociables (analyse prospective) ; échange de droits d'émission ; facteur 4 ; secteur des transports ; acceptabilité ; équité |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:hal:papers:halshs-00204074_v1&r=env |
| By: | Wolfram Schlenker; Michael Roberts |
| Abstract: | The United States produces 41% of the world's corn and 38% of the world's soybeans, so any impact on US crop yields will have implications for world food supply. We pair a panel of county-level crop yields in the US with a fine-scale weather data set that incorporates the whole distribution of temperatures between the minimum and maximum within each day and across all days in the growing season. Yields increase in temperature until about 29C for corn, 30C for soybeans, and 32C for cotton, but temperatures above these thresholds become very harmful. The slope of the decline above the optimum is significantly steeper than the incline below it. The same nonlinear and asymmetric relationship is found whether we consider time series or cross-sectional variation in weather and yields. This suggests limited potential for adaptation within crop species because the latter includes farmers' adaptations to warmer climates and the former does not. Area-weighted average yields given current growing regions are predicted to decrease by 31-43% under the slowest warming scenario and 67-79% under the most rapid warming scenario by the end of the century. |
| JEL: | C23 Q54 |
| Date: | 2008–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:13799&r=env |
| By: | Hennessy, David A.; Feng, Hongli |
| Abstract: | When nonpoint source pollution is stochastic and the damage function is convex, intuition might suggest it is more important to control a nonpoint pollution source than a point source. Earlier research has provided sufficient conditions such that the permit price for a unit of ex-ante expected emissions should be higher than the permit price for a unit of certain emissions. Herein we provide a set of necessary and sufficient conditions such that this is the case. An approach to testing for the validity of the condition set is available, and has been applied to a related problem. |
| Date: | 2008–02–08 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genres:12868&r=env |
| By: | Anna Rita Germani |
| Abstract: | This paper aims to give a comparative analysis on the different enforcement approaches in respect to both civil and common law systems (i.e. Europe vs. USA) by analyzing some crucial aspects of their underlying normative systems. Therefore, the role of the juridical institutions in these two diverse contexts is analyzed, in order to identify the economic efficiency implications based upon the theory of public enforcement of environmental laws. |
| Keywords: | environmental enforcement, economic analysis of law, common law, civil law. |
| JEL: | K0 K42 |
| Date: | 2007–12 |
| URL: | http://d.repec.org/n?u=RePEc:ufg:qdsems:22-2007&r=env |
| By: | Travaglini, Guido |
| Abstract: | In this paper I propose a nonstandard t-test statistic for detecting level and trend breaks of I(0) series. Theoretical and limit-distribution critical values obtained from Montecarlo experimentation are supplied. The null hypothesis of anthropogenic versus natural causes of global warming is then tested for the period 1850-2006 by means of a dynamic GMM model which incorporates the null of breaks of anthropogenic origin. World average temperatures are found to be tapering off since a few decades by now, and to exhibit no significant breaks attributable to human activities. While these play a minor causative role in climate changes, most natural forcings and in particular solar sunspots are major warmers. Finally, in contrast to widely held opinions, greenhouse gases are in general temperature dimmers. |
| Keywords: | Generalized Method of Moments; Multiple Breaks; Principal Component Analysis; Global Warming. |
| JEL: | C51 C22 Q54 |
| Date: | 2008–02–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:7108&r=env |
| By: | Erik S. Reinert; Iulie Aslaksen; Marie G. Eira; Svein Mathiesen; Hugo Reinert; Ellen Inga Turi |
| Abstract: | This paper discusses the role of nation-states and their systems of gover- nance as sources of barriers and solutions to adaptation to climate change from the point of view of Saami reindeer herders. The Saami, inhabiting the northernmost areas of Fennoscandia, is one of more than twenty ethnic groups in the circumpolar Arctic that base their traditional living on reindeer herding. Climate change is likely to affect the Saami regions severely, with winter temperatures predicted to increase by up to 7 centigrade. We argue that the pastoral practices of the Saami herders are inherently better suited to handle huge natural variation in climatic con- ditions than most other cultures. Indeed, the core of their pastoral practices and herding knowledge is skillful adaptation to unusually frequent and rapid change and variability. This paper argues that the key to handle permanent changes successfully is that herders themselves have sufficient degrees of freedom to act. Considering the similarities in herding practices in the fours nation-states between which Saami culture is now divided . Norway, Sweden, Finland, and Russia . the systems of governance are surprisingly different. Indeed, the very definition of what is required to be defined as an ethnic Saami is very different in the three Nordic countries. We argue that timely adjust- ments modifying the structures of governance will be key to the survival of the Saami reindeer herding culture. Since the differences in governance regimes . and the need to change national governance structures . are so central to our argument, we spend some time tracing the origins of these systems. |
| Date: | 2008–01 |
| URL: | http://d.repec.org/n?u=RePEc:tth:wpaper:16&r=env |
| By: | Olivier Godard (PREG - Pole de recherche en économie et gestion - CNRS : UMR7176 - Polytechnique - X) |
| Abstract: | Approuvé par plusieurs prix Nobel (Mirrlees, Sen, Solow, Stiglitz) le Rapport Stern sur l’économie du changement climatique a également été vivement critiqué par plusieurs économistes de renom, en particulier nord-américains. Le cœur des critiques concerne les choix en matière de taux d’actualisation, le traitement de l’incertitude et celui de l'adaptation des générations futures à la nouvelle donne climatique. L’équipe Stern est globalement accusée d’avoir manipulé la méthodologie économique afin de pouvoir dresser un tableau catastrophiste du problème. De l’examen du débat, il ressort que le rapport Stern n’est pas à l’abri de tout reproche mais qu’il a raison sur l’essentiel contre ses critiques si l’on reste dans le cadre de la philosophie utilitariste dont procède l'analyse coûts-avantages. Comme un boomerang, ce débat a permis de révéler le lot d’hypothèses contestables ou mal fondées qui sous-tendaient les évaluations avancées par nombre d’économistes prisonniers de concepts et de conventions de méthode inadaptées au problème du changement climatique planétaire. L’approche séquentielle de la décision, plus en phase, n’a jusqu’à présent pas recueilli l’audience qu’elle mérite, elle aussi prisonnière d’un débat théorique largement décalé. Plus radicales, les alternatives non-utilitaristes rencontrent des difficultés non négligeables, en particulier autour de l'idée de droits des générations futures. Les débats sur le climat mettent en évidence une relation difficile et confuse entre éthique et économie. Ainsi, l'habillage en termes d'efficacité économique dont est revêtu le débat critique sur le rapport Stern est largement trompeur, car le problème abordé est dominé par le statut éthique à reconnaître aux générations futures et la légitimité de transferts imposés de coûts en contexte asymétrique, deux questions qui échappent à l’analyse économique. |
| Keywords: | Changement climatique;Actualisation;Equité intergénérationnelle;Analyse coûts avantages;Approche séquentielle;Adaptation;Rapport Stern |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:hal:papers:hal-00243059_v1&r=env |
| By: | Sean Lyons (Economic and Social Research Institute (ESRI)); Karen Mayor (Economic and Social Research Institute (ESRI)); Richard S. J. Tol (Economic and Social Research Institute (ESRI)) |
| Abstract: | We estimate a pooled travel model for the destination choice of tourists from the Republic of Ireland in 2006. We distinguish between holidaymakers (further split into travelling with children, elderly, and other), visitors to family, visitors to friends, business travellers and other travellers. We show that the different types of tourist have very different preferences. Elderly holidaymakers and family visitors stand out most from the “average” tourist. Preferences for cultural heritage, population density, and temperature discriminate the most between tourist types. We find some evidence that destination preferences vary over the year, but limited data prevent a full investigation. All types of Irish tourists are indifferent to precipitation. Only holidaymakers respond to temperature differences. All holidaymakers dislike cold destinations, but only elderly holidaymakers dislike hot destinations as well. |
| Keywords: | International tourism, Ireland, Pooled Travel Model |
| Date: | 2008–02 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp225&r=env |
| By: | Eric BERR (GREThA) |
| Abstract: | The objective of this paper, which synthesizes various researches, is twofold. First, starting from empirical studies, we show that development policies implemented since the beginning of the international debt crisis of 1982 led to a failure, showing that the Washington consensus based approach of development is unsustainable. Thus, from a heterodox perspective, we investigate the theoretical debate aiming at constructing a strong sustainability. |
| Keywords: | Washington consensus, sustainable development, debt, Keynes, post Keynesians. |
| JEL: | B31 E12 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:grt:wpegrt:2008-04&r=env |
| By: | Faye Duchin (Department of Economics, Rensselaer Polytechnic Institute, Troy NY 12180-3590, USA); Stephen H. Levine (Department of Environmental Engineering, Tufts University, Boston, MA, USA) |
| Abstract: | Abstract. This paper presents a new approach for estimating the amount of carbonembodied in a product consumed in a given economy, taking account of where the inputsto that product were extracted and processed all along the supply chain. The method isgeneralized to apply to all factor inputs, including materials and energy, as well as pollutant emissions and can track not only the flows of factors and goods as imports andexports along the global supply chain but also the payments for these inputs made by ultimate consumers along the global value chain. The new method makes use ofabsorbing Markov chains that track downstream and upstream flows. These chains are first described in terms of the mathematics of a one-region input-output model and thengeneralized to the global framework of a multiregional world economy. The paper also describes the standard way of solving this problem, which we call the Big A method, andindicates the main advantages of the Markov chain approach, namely that it is implemented without loss of information using a more compact database and can addressa wider range of questions, especially ones related to the recycling of materials. Finally,the paper discusses the parameter requirements distinguishing this type of ex-postanalysis from model-based exploration of alternative scenarios about the future and makes the case for combining the two. |
| JEL: | C63 C67 F18 Q56 Q57 |
| Date: | 2008–01 |
| URL: | http://d.repec.org/n?u=RePEc:rpi:rpiwpe:0714a&r=env |
| By: | Emilio De Meo; Susumo Yashida; Nicola Valente |
| Abstract: | L'utilizzo delle risorse idriche per l'irrigazione delle colture comporta numerosi benefici diretti sia per gli agricoltori (aumento del reddito e riduzione del rischio) che per i consumatori (sicurezza negli approvvigionamenti, diversificazione delle produzioni agricole). Oltre ad avere conseguenze sui soggetti direttamente interessati, l'impiego dell'acqua irrigua determina esternalita' sia positive che negative. Uno dei problemi connessi all'irrigazione riguarda la salinizzazione delle acque di falda dovuta ad all'utilizzo non sostenibile della risorsa. La ricerca intende valutare la perdita di benefici dovuti al sovra-utilizzo dell'acqua di falda in un'area mediterranea. L'analisi empirica, riferita ad una zona di interesse nella provincia di Foggia, nel sud Italia, consiste nello stimare il valore di tale esternalita', misurata in termini di differenza tra i margini lordi che si otterrebbero se la risorsa idrica venisse sfruttata in maniera sostenibile e quelli che si ricavano in condizioni di sovra-sfruttamento. L'analisi e' stata sviluppata con l'ausilio di un decision support system (DSS) basato su un modello di programmazione matematica. |
| Keywords: | salinizzazione, irrigazione, esternalita', programmazione lineare. |
| JEL: | Q25 |
| Date: | 2007–12 |
| URL: | http://d.repec.org/n?u=RePEc:ufg:qdsems:29-2007&r=env |