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on Environmental Economics |
| By: | David Popp (Center for Policy Research, Maxwell School of Citizenship and Public Affairs, 426 Eggers Hall, Syracuse University, Syracuse, New York USA 13244-1020) |
| Abstract: | While the developed world is starting to limit emissions of greenhouse gases, emissions from the developing world are increasing as a result of economic growth. Reducing these emissions while still enabling developing countries to grow requires the use of new technologies. In most cases, these technologies are first created in high-income countries. Thus, the challenge for climate policy is to encourage the transfer of these climate-friendly technologies to the developing world. This policy brief reviews the economic literature on environmental technology transfer. It then discusses the implications of this literature for climate policy, focuing on the Clean Developmenht Mechanism (CDM) ofthe Kyoto Protocol. It concludes by asking whether the current structure of the CDM provides sufficient incentives for technology transfer. Are CDM projects providing real emissions reductions, or are developed countries simply receiving credit for reductions that developing countries could have achieved on their own? What lessons can we learn from recent experience that may guide the development of the CDM (or other similar policy tools) during the next round of international climate policy negotiations? |
| Keywords: | Kyoto Protocol, greenhouse gases, global warming, clean development mechanism, carbon dioxide, GHG emissions, sustainability |
| JEL: | D43 F23 K32 L24 L71 O3 Q5 |
| Date: | 2008–10 |
| URL: | http://d.repec.org/n?u=RePEc:max:cprpbr:39&r=env |
| By: | Corrado Di Maria (University College Dublin); Sjak Smulders (Tilburg University); Edwin van der Werf (University of Oldenburg) |
| Abstract: | We study the effectiveness of climate change policy in a model with multiple non-renewable resources that differ in their carbon content. We find that, when allowing some time between announcement and implementation of a cap on carbon dioxide emissions, emissions from non-renewable energy sources increase at the time of announcement. There are two channels behind this effect. First, since a binding constraint on emissions restricts energy use during some period of time, more must be extracted during other periods. Second, since low carbon energy sources are relatively more valuable when the policy is implemented, it is optimal to conserve them ahead of enforcement. This might induce a switch to high-carbon resources before the policy is implemented. |
| Keywords: | Climate Policy, Non-renewable Resources, Announcement Effects, Scarcity, Order of Extraction |
| JEL: | Q31 Q41 Q54 Q58 |
| Date: | 2008–11 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2008.92&r=env |
| By: | Benno Torgler (Queensland University of Technology); María A. García Valiñas (University of Oviedo); Alison Macintyre (The School of Economics and Finance, Queensland University of Technology) |
| Abstract: | We explore whether environmental motivation affects environmental behavior by focusing on volunteering. The paper first introduces a theoretical model of volunteering in environmental organizations. In a next step, it tests the hypothesis working with a large micro data set covering 32 countries from both Western and Eastern Europe using several different proxies to measure environmental motivation. Our results indicate that environmental motivation has a strong impact on individuals’ voluntary engagement in environmental organizations. A higher level of environmental motivation due to higher environmental moral standards may lead to a stronger voluntary involvement in environmental organizations. |
| Keywords: | Environmental Participation, Environmental Motivation, Environmental Morale, Pro-environmental Attitudes, Social Capital |
| JEL: | D11 H41 H26 H73 D64 |
| Date: | 2008–11 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2008.95&r=env |
| By: | Geoffrey Heal (Columbia University); Nori Tarui (University of Hawaii at Manoa) |
| Abstract: | This paper studies countries’ incentives to develop advanced pollution abatement technology when technology may spillover across countries and pollution abatement is a global public good. We are motivated in part by the problem of global warming: a solution to this involves providing a global public good, and will surely require the development and implementation of new technologies. We show that at the Nash equilibrium of a simultaneous-move game with R&D investment and emission abatement, whether the free rider effect prevails and under-investment and excess emissions occur depends on the degree of technology spillovers and the effect of R&D on the marginal abatement costs. There are cases in which, contrary to conventional wisdom, Nash equilibrium investments in emissions reductions exceed the first-best case. |
| Keywords: | International Environmental Agreement, Pollution Abatement Costs, Endogenous Technological Change |
| JEL: | Q50 H87 D70 |
| Date: | 2008–11 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2008.96&r=env |
| By: | Aslanidis Nektarios |
| Abstract: | The empirical finding of an inverse U-shaped relationship between per capita income and pollution, the so-called Environmental Kuznets Curve (EKC), suggests that as countries experience economic growth, environmental deterioration decelerates and thus becomes less of an issue. Focusing on the prime example of carbon emissions, the present article provides a critical review of the new econometric techniques that have questioned the baseline polynomial specification in the EKC literature. We discuss issues related to the functional form, heterogeneity, “spurious” regressions and spatial dependence to address whether and to what extent the EKC can be observed. Despite these new approaches, there is still no clear-cut evidence supporting the existence of the EKC for carbon emissions. |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:ter:wpaper:0051&r=env |
| By: | Massimiliano Mazzanti (University of Ferrara); Giulio Cainelli (University of Bari); Roberto Zoboli (Catholic University of Milan & CERIS CNR) |
| Abstract: | This paper investigates the empirical link between emission intensity and economic growth, using a very large data set of 61,219 Italian manufacturing firms over the period 2000-2004. As a measure of lagged environmental performance (efficiency) at firm level we exploit NAMEA sector for CO2, NOx, SOx data over 1990-1999. The paper tests the extent to which (past) environmental efficiency/intensity, which is driven by structural features and firm strategic actions, including responses to policies, influences firms growth. Our results show, first, a typical trade off generally appearing for the three core environmental emissions we analyse: lower environmentally efficiency in the recent past allows higher degrees of freedom to firms and relax the constraints for growth, at least in this short/medium term scenario. Nevertheless, the size of the estimated coefficients is not large. Trade off are significant for two emission indicators out of two, but quite negligible in terms of impacts, besides the case of CO2. For example, growth is reduced by far less than 0.1% in association to a 1% increase of environmental efficiency. Environmental efficiency does not seem a primary cost factor and constraint to growth if compared to other factors affecting firm targets and firm competitiveness. In addition, non-linearity seems to characterise the economic growth-environmental performance relationship. Signals of inverted U shape appears: this may be a signal that both firm strategies and recent policy efforts are affecting the dynamic relationship between environmental efficiency and economic productivity, turning it from an usual trade off to a possible joint complementary/co-dynamics, where bad environmental performances hamper firm growth and investments in greener technologies may be associated to positive economic performances of firms and sectors. |
| Keywords: | Firm growth, Manufacturing, Emission intensity, Economic performance, Environmental performance |
| JEL: | C23 D21 O32 Q55 |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2008.99&r=env |
| By: | Edilio Valentini (Università "G. D'Annunzio" di Chieti-Pescara); Edilio Valentini (Università "G. D'Annunzio" di Chieti-Pescara) |
| Abstract: | This paper addresses the issue of whether the powers of monitoring compliance and allocating tradeable emissions allowances within a federation of countries should be appointed to a unique federal regulator or decentralized to several local regulators. To this end, we develop a two stage game played by environmental regulator(s) and the polluting industries of two countries. Regulator(s) choose the amount of emission allowances to be issued and set the level of monitoring effort to achieve full compliance, while regulated firms choose actual emissions and the number of permits to be held. We identify various, possibly conflicting, spillovers among states in a decentralized setting. We show that cost advantage in favor of local regulators is not sufficient to justify decentralization. Nevertheless, cost differential in monitoring violations can imply lower emissions and greater welfare under a decentralized institutional setting than under a centralized one. However, while a better environmental quality under decentralization is a sufficient condition for higher welfare under the same regime, it is not also a necessary condition. |
| Keywords: | Emissions Trading, Environmental Federalism, Enforcement, Monitoring Cost |
| JEL: | F18 K42 Q53 |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2008.97&r=env |
| By: | Dirk T.G. Rübbelke (Center for International Climate and Environmental Research Oslo (CICERO)); Nathan Rive (Center for International Climate and Environmental Research Oslo (CICERO)) |
| Abstract: | In an impure public good model we analyze the effects of CDM transfers on poverty as well as on the global climate protection level. We construct an analytical model of a developing and an industrialized region, both of which independently seek to maximize their utility – a function of private consumption, domestic air quality, and global climate protection. They do so by distributing their finite expenditures across (1) the aggregate consumption good, (2) end-of-pipe pollution control technologies, and (3) greenhouse gas abatement. Based on our analytical findings, we develop two sets of simulations for China in which we vary the rate of the CDM transfer. The simulations differ by the assumption of China’s domestic air quality policy – the first assumes a technology-standards policy which fixes a level of end-of-pipe SO2 control, whereas the second assumes a technology-neutral policy which simply fixes the level of total SO2 emissions. |
| Keywords: | Ancillary Benefits, CDM, Climate Policy, Impure Public Goods, Transfers, Abatement Technology |
| JEL: | Q54 H23 H41 O33 |
| Date: | 2008–11 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2008.93&r=env |
| By: | Karen Turner (Department of Economics, University of Strathclyde); Michelle Gilmartin (Department of Economics, University of Strathclyde); Peter McGregor (Department of Economics, University of Strathclyde); Kim Swales (Department of Economics, University of Strathclyde) |
| Abstract: | The application of multi-region environmental input-output (IO) analysis to the problem of accounting for emissions generation (and/or resource use) under different accounting principles has become increasingly common in the ecological and environmental economics literature in particular, with applications at the international and interregional subnational level. However, while environmental IO analysis is invaluable in accounting for pollution flows in the single time period that the accounts relate to, it is limited when the focus is on modelling the impacts of any marginal change in activity. This is because a conventional demand-driven IO model assumes an entirely passive supply-side in the economy (i.e. all supply is infinitely elastic) and is further restricted by the assumption of universal Leontief (fixed proportions) technology implied by the use of the A and multiplier matrices. Where analysis of marginal changes in activity is required, extension from an IO accounting framework to a more flexible interregional computable general equilibrium (CGE) approach, where behavioural relationships can be modelled in a more realistic and theory-consistent manner, is appropriate. Our argument is illustrated by comparing the results of introducing a positive demand stimulus in the UK economy using IO and CGE interregional models of Scotland and the rest of the UK. In the case of the latter, we demonstrate how more theory consistent modelling of both demand and supply side behaviour at the regional and national levels effect model results, including the impact on the interregional CO2 ‘trade balance’. |
| Keywords: | modelling, MRIO, CO2 trade balance, environmental responsibility |
| JEL: | D57 D58 R15 Q56 |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:str:wpaper:0903&r=env |
| By: | Robert N. Stavins (Harvard University); Judson Jaffe (Analysis Group) |
| Abstract: | Cap-and-trade systems have emerged as the preferred national and regional instrument for reducing emissions of greenhouse gases throughout the industrialized world, and the Clean Development Mechanism — an international emission-reduction-credit system — has developed a substantial constituency, despite some concerns about its performance. Because linkage between tradable permit systems can reduce compliance costs and improve market liquidity, there is great interest in linking cap-and-trade systems to each other, as well as to the CDM and other credit systems. We examine the benefits and concerns associated with various types of linkages, and analyze the near-term and long-term role that linkage may play in a future international climate policy architecture. In particular, we evaluate linkage in three potential roles: as an independent bottom-up architecture, as a step in the evolution of a top-down architecture, and as an ongoing element of a larger climate policy agreement. We also assess how the policy elements of climate negotiations can facilitate or impede linkages. Our analysis throughout is both positive and normative. |
| Keywords: | Linkage, Cap-and-Trade, Tradable Permits, Global Climate Change |
| JEL: | F50 Q20 Q40 Q50 |
| Date: | 2008–10 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2008.90&r=env |
| By: | Adja Awa Sissoko; Guy Vandille |
| Abstract: | This paper illustrates the deficiency of the production approach as a tool to measure a country's responsibility for international environmental impacts. A use approach is presented as a more suitable tool. The difference between the two approaches is determined by a better grasp of international trade, which can lead to environmental leakage when a country specialises in the production of environmentally friendly products and has the environmentally unfriendly products which it consumes produced abroad. We show that in the period 1995-2002 Belgium was on average a provider of air emission intensive products for the rest of the world. Environmental leakage was mostly negative. However, the evolution of the Belgian environmental terms of trade shows that by 2002 its imports had become considerably more air emission intensive with respect to its exports than in 1995. There are indications that this evolution is due to a considerable increase of extra-EU imports of air emission intensive products. This in turn could point to environmentally inspired offshoring. However, the currently available data do not allow us to test this hypothesis. |
| JEL: | F18 |
| Date: | 2008–10–30 |
| URL: | http://d.repec.org/n?u=RePEc:fpb:wpaper:0819&r=env |
| By: | Germani, Anna Rita; Morone, Andrea; Morone, Piergiuseppe |
| Abstract: | In this work, we conducted a laboratory experiment in order to test the findings of a theoretical environmental enforcement model played as a strategic game where the firm’s behavior is influenced by the course of actions discretionally undertaken by both the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Justice (DOJ). Our experimental findings suggest that the presence of the DOJ can be counterproductive in increasing social welfare, since it implies solely additional enforcement costs, which, in turn, might reduce the probability of conducting inspections by the EPA without affecting the probability of firm’s compliance. |
| Keywords: | classroom experiments; environmental enforcement; environmental economics |
| JEL: | Q50 O13 C90 |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:12735&r=env |
| By: | Markus Groth (Institute of Economics, University of Lüneburg) |
| Abstract: | Against the background of a rapid biodiversity loss in agricultural landscapes, increasing attention is being paid to farming practices that enhance ecosystem services. Therefore developing a cost-efficient and effective conservation-compatible land use policy to influence private land management is the main challenge facing present European agri-environmental policy. This paper deals with the design, implementation and results of a case-study payment scheme in the county Steinburg in the northernmost federal state of Germany (Schleswig- Holstein). The payment scheme combines a payment-by-results approach and the use of conservation procurement auctions in order to improve the cost-effectiveness of conservation schemes for grassland plant biodiversity. |
| Keywords: | Agrarumweltprogramme, Ausschreibungen, ergebnisorientierte Honorierung, Experimentelle Ökonomik, Informationsasymmetrie, Ökosystemdienstleistungen, pflanzliche Biodiversität, Vertragsdifferenzierung, Vertragsnaturschutz |
| JEL: | C93 D44 H41 Q24 Q28 Q57 R52 |
| Date: | 2008–11 |
| URL: | http://d.repec.org/n?u=RePEc:lue:wpaper:105&r=env |
| By: | Philippe Quirion (CIRED); Damien Demailly (CIRED) |
| Abstract: | We assess five proposals for the future of the EU greenhouse gas Emission Trading Scheme (ETS): pure grandfathering allocation of emission allowances (GF), output-based allocation (OB), auctioning (AU), auctioning with border adjustments (AU-BA), and finally output-based allocation in sectors exposed to international competition combined with auctioning in electricity generation (OB-AU). We look at the impact on production, trade, CO2 leakage and welfare. We use a partial equilibrium model of the EU 27 featuring three sectors covered by the EU ETS – cement, steel and electricity – plus the aluminium sector, which is indirectly impacted through a rise in electricity price. The leakage ratio, i.e. the increase in emissions abroad over the decrease in EU emissions, ranges from around 8% under GF and AU to -2% under AU-BA and varies greatly among sectors. Concerning the overall economic cost, OB appears to be the least efficient policy, even when taking into account its ability to prevent CO2 leakage. On the other hand, this policy minimises production losses and wealth transfers among stakeholders, which is likely to soften oppositions. GF and AU are the most efficient policies from an EU perspective, even when leakage is accounted for. From a world welfare perspective and whatever the emission reductio |
| Keywords: | Emission Trading, Allowance Allocation, Leakage, Spillover, Climate Policy, Kyoto Protocol, Border Adjustment |
| JEL: | Q5 |
| Date: | 2008–10 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2008.89&r=env |
| By: | Narita, Daiju (ESRI); Tol, Richard S. J. (ESRI); Anthoff, David (ESRI) |
| Abstract: | Extratropical cyclones have attracted some attention in climate policy circles as a possible significant damage factor of climate change. This study conducts an assessment of economic impacts of increased storm activities under climate change with the integrated assessment model FUND 3.4. In the base case, the direct economic damage of enhanced storms due to climate change amounts to $2.4 billion globally (approximately 35% of the total economic loss of storms at present) at the year 2100, while its ratio to the world GDP is 0.0007%. The paper also shows various sensitivity runs exhibiting up to 4 times the level of damage relative to the base run. |
| Keywords: | policy |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp274&r=env |
| By: | Enrique Calfucura; Jessica Coria; José Miguel Sánchez (Instituto de Economía. Pontificia Universidad Católica de Chile.) |
| Abstract: | Chile has pioneered the implementation of emission offseting programs pursuing simultaneously economic growth and environmental protection. In this paper, emission trading programs implemented in Santiago of Chile are analyzed and its relevance for developing countries is evaluated. It is argued that emission trading programs can be the best tool to deal with air pollution problems even in the cases in which the institutional capacities are not well developed. <br><br>Moreover, the inclusion of the transport system into the emission trading programs and the possibility of moving towards a system of interpollutants exchange are both nouvelle and relevant elements in the context of air pollution control policies. However, these innovations involve rather more complex elements in the design of emission trading programs. |
| Keywords: | Permisos transables de emisión, compensación de emisiones, contaminación. |
| JEL: | Q53 Q58 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ioe:doctra:347&r=env |
| By: | Clive L Spash; Heinz Schandl (CSIRO Sustainable Ecosystems, Australia) |
| Abstract: | This paper explores the approach of Post Keynesian Economics (PKE) in comparison with ecological economics. While PKE, like all macroeconomics, has failed to address environmental problems it does have many aspects which make compatibility with ecological economics seem feasible. Ecological economics has no specific macroeconomic approach although it has strong implications for economic growth and how this should be controlled, directed and in materials terms limited. We highlight growth as the key area of difference and reflect upon how Keynes himself saw capital accumulation as a means to an end not an end in itself, regarded it as a temporary measure and also was well aware of some of its psychological and social drawbacks. |
| Keywords: | environment, Keynes, post keynesian, ecological economics |
| JEL: | E12 O40 P16 Q01 |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:cse:wpaper:2009-01&r=env |
| By: | Francis Bossier; Danielle Devogelaer; Dominique Gusbin; Frédéric Verschueren |
| Abstract: | In order to prepare for the negotiations on the EU Energy and Climate Package, the Federal Planning Bureau was asked by the Belgian federal and regional authorities to conduct a study on the impact of the January 2008 European Commission's proposal. In the course of this study, various scenarios were run. Next to a baseline, two main alternative scenarios were scrutinised: the 20/20 and 30/20 target scenarios, standing for an EU reduction of respectively 20% and 30% of GHG emissions in the year 2020 compared to the level of 1990 and a 20% mandatory EU share of RES in Gross Final Energy Demand in 2020. The report then includes an analysis of the impact of both scenarios on the Belgian energy system and economy as well as on GHG emissions. |
| JEL: | Q4 C6 O2 |
| Date: | 2008–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:fpb:wpaper:0821&r=env |
| By: | Philippe Quirion (CIRED); Louis-Gaëtan Giraudet (CIRED, ENPC) |
| Abstract: | Tradable White Certificates (TWC) schemes, also labelled Energy-Efficiency Certificates schemes, were recently implemented in Great Britain, Italy and France. Energy suppliers have to fund a given quantity of energy efficiency measures, or to buy so-called "white certificates" from other suppliers who exceed their target. We develop a partial equilibrium model to compare TWC schemes to other policy instruments for energy efficiency, i.e., energy taxes, subsidies on energy-saving goods and regulations fixing a minimum level of energy-efficiency. The model features an endogenous level of energy service and we analyse the influence of the substitutability between energy and energy-saving goods to produce the energy service, as well as the influence of the elasticity of demand for the energy service. We show that if the level of energy service consumption is fixed, a TWC scheme is as efficient as an energy tax, but that it is much less otherwise because it does not provide the optimal incentive to reduce the consumption of energy service. This inefficiency is worsened if energy suppliers' targets are fixed rather than proportional to the suppliers' current output. On the other hand, compared to taxes, a TWC scheme allows reaching a given level of energy savings with a lower increase in the consumers' energy price, which may ease its implementation. |
| Keywords: | Energy Saving Policies, Energy-Efficiency Certificates, White Certificates, Rebound Effect |
| JEL: | Q38 Q48 Q58 |
| Date: | 2008–10 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2008.88&r=env |
| By: | Massimiliano Mazzanti (University of Ferrara); Roberto Zoboli (Catholic University of Milan & CERIS CNR) |
| Abstract: | Waste generation and waste disposal are issues that are becoming increasingly prominent in the environmental arena both from a policy perspective and in the context of delinking analysis. Waste generation is still increasing proportionally with income, and economic and environmental costs associated to landfilling are also increasing. This paper provides a comprehensive analysis of waste generation, incineration, recycling and landfill dynamics based on panel data for the EU25, to assess the effects of different drivers (economic, structural, policy) and the eventual differences between western and eastern EU countries. We show that for waste generation there is still no Waste Kuznets Curve (WKC) trend, although elasticity to income drivers appear lower than in the past. Landfill and other policy effects do not seem to provide backward incentives for waste prevention. Regarding landfill and incineration, the two trends, as expected, are respectively decreasing and increasing, with policy providing a strong driver. It demonstrates the effectiveness of policy even in this early stage of policy implementation. This is essential for an ex post evaluation of existing landfill and incineration directives. Eastern countries appear to perform generally quite well, thus benefiting from their EU membership and related policies in terms of environmental performances. We may conclude that although absolute delinking is far from being achieved for waste generation, there are first positive signals in favour of an increasing relative delinking for waste generation and average robust landfill diversion, and various evidence of a significant role of the EU waste policies implemented in the late 1990s and early 2000s on landfill diversion. Waste prevention is nevertheless the next necessary target of waste regulatory efforts. |
| Keywords: | Waste Kuznets Curves, Delinking, Waste Generation, Waste Disposal, Landfilling, Landfill Policies, Evaluation Methodology, Incineration |
| JEL: | C23 Q38 Q56 |
| Date: | 2008–11 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2008.94&r=env |
| By: | Gerda Dewit (Economics, National University of Ireland, Maynooth); Dermot Leahy (Economics, National University of Ireland, Maynooth) |
| Abstract: | We investigate whether and to what extent uniform and differentiated tax systems diverge in their propensity to create distortionary opportunistic behavoiur. The set-up in which we carry out our analysis features polluting firms that are confronted with existence a Pigovian emission tax. Firms can invest in pollution abatement. We first show that the existence of emmission taxes, although optimally chosen, create strategic incentives for firms to distort their abatement investment. Second, we find that a system of differentiated emission taxes has a greater propensity to foster strategic distortions in abatement investment than a uniform emission tax regime. |
| Keywords: | Uniform tax, Differentiated taxes, Emission tax, Short-run policy commitment, Pollution-abating investment, Strategic investment. |
| JEL: | H23 C72 Q58 L10 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:may:mayecw:n1971108.pdf&r=env |
| By: | Akpalu, Wisdom; Hassan, Rashid M.; Ringler, Claudia |
| Abstract: | "This paper investigates the impact of climate variability on maize yield in the Limpopo Basin of South Africa using the Generalized Maximum Entropy (GME) estimator and Maximum Entropy Leuven Estimator (MELE). Precipitation and temperature were used as proxies for climate variability, which were combined with traditional inputs variables (i.e., labor, fertilizer, seed, and irrigation). We found that the MELE fits the data better than the GME. In addition, increased precipitation, increased temperature, and irrigation have a positive impact on yield. Furthermore, results of the MELE show that the impact of precipitation on maize yield is stronger than that of temperature, meaning that the impact of climate variability on maize yield could be negative if the change increases temperature but reduces precipitation at the same rate and simultaneously. Moreover, the impact of irrigation on yield is positive but with a lower elasticity coefficient than that of precipitation, which supposes that irrigation may only partially mitigate the impact of reduced precipitation on yield. " from authors' abstract |
| Keywords: | Yield function, maize, Generalized maximum entropy, Maximum entropy Leuven estimator, Climate variability, Climate change, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:843&r=env |
| By: | Barna, Cristina |
| Abstract: | Today we face the challenge of building biodiversity business. There is a need to develop new business models and market mechanisms for biodiversity conservation, while also raising awareness and persuading the public and policy-makers that biodiversity can be conserved on a commercial basis. In this context the present paper is analyzing the arise of a new economic concept ‘business biodiversity’, focusing on the strategic importance of biodiversity for business and also presenting some business biodiversity models which have already began to have success in the global economy. |
| Keywords: | sustainable development; biodiversity; business biodiversity; economics of biodiversity |
| JEL: | Q57 |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:12596&r=env |
| By: | Bettina Kretschmer; Sonja Peterson |
| Abstract: | In the past years biofuels have received increased attention since they were believed to contribute to rural development, energy security and to fight global warming. It became also clear, though, that bioenergy cannot be evaluated independently of the rest of the economy and that national and international feedback effects are important. Computable general equilibrium (CGE) models have been widely employed in order to study the effects of international climate policies. The main characteristic of these models is their encompassing scope: Global models cover the whole world economy disaggregated into regions and countries as well as diverse sectors of economic activity. Such a modelling framework unveils direct and indirect feedback effects of certain policies or shocks across sectors and countries. CGE models are thus well suited for the study of bioenergy/biofuel policies. One can currently find various approaches in the literature of incorporating bioenergy into a CGE framework. This paper intends to give an overview of existing approaches and to critically assess their respective power. Grouping different approaches into categories and highlighting their advantages and disadvantages is important for giving a structure to this rather recent and rapidly growing research area and to provide a guidepost for future work |
| Keywords: | biofuels, CGE model, climate policy |
| JEL: | D58 Q42 Q48 Q54 |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1473&r=env |
| By: | Matteo Manera (University of Milano-Bicocca); Cristina Cattaneo (Fondazione Eni Enrico Mattei, Milan and University of Sussex); Elisa Scarpa (Edison Trading) |
| Abstract: | In recent years, concerns regarding the environmental implications of the rising coal demand have induced considerable efforts to generate long-term forecasts of China’s energy requirements. Nevertheless, none of the previous empirical studies on energy demand for China has tackled the issue of modelling coal demand in China at provincial level. The aim of this paper is to fill this gap. In particular, we model and forecast the Chinese demand for coal using time series data disaggregated by provinces. Moreover, not only does our analysis account for heterogeneity among provinces, but also, given the nature of the data, it captures the presence of spatial autocorrelation among provinces using a spatial econometric model. A fixed effects spatial lag model and a fixed effects spatial error model are estimated to describe and forecast industrial coal demand. Our empirical results show that the fixed effect spatial lag model better captures the existing interdependence between provinces. This model forecasts an average annual increase in coal demand to 2010 of 4 percent. |
| Keywords: | Energy demand, Coal demand, China, Spatial econometrics, Panel data, Forecasting |
| JEL: | C23 E6 Q31 Q41 |
| Date: | 2008–02 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2008.8&r=env |
| By: | Betty Agnani (Universidad de Granada); Mª José Gutiérrez (Universidad del País Vasco); Amaia Iza (Universidad del País Vasco) |
| Abstract: | The aim of this paper is to analyze how active R&D policies affect the growth rate of an economy with endogenous growth and non-renewable resources. We know from Scholz and Ziemens (1999) and Groth (2006) that in infinitely lived agents (ILA) economies, any active R&D policy increases the growth rate of the economy. To see if this result also appears in economies with finite lifetime agents, we developed an endogenous growth overlapping generations (OLG) economy à la Diamond which uses non-renewable resources as essential inputs in final good’s production. We show analytically that any R&D policy that reduces the use of natural resources implies a raise in the growth rate of the economy. Numerically we show that in economies with low intertemporal elasticity of substitution (IES), active R&D policies lead the economy to increase the depletion of non-renewable resources. Nevertheless, we find that active R&D policies always imply increases in the endogenous growth rate, in both scenarios. Furthermore, when the IES coefficient is lower (greater) than one, active R&D policies affect the growth rate of the economy in the ILA more (less) than in OLG economies. |
| Keywords: | Crecimiento endógeno, I+D, recursos no renovables, sendas de crecimiento, estable,endogenous growth, R&D, non-renewable resources, overlapping generations, infinitely lived agents, balanced growth path. |
| JEL: | O13 O40 Q32 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:cea:doctra:e2008_11&r=env |
| By: | Gøril Bjerkhol Havro; Javier Santiso |
| Abstract: | Il paraît évident de prime abord que la découverte d’un gisement de pétrole ou de cuivre est une très bonne nouvelle. Mais il arrive souvent que cette promesse tourne mal. La manne des ressources naturelles peut générer de la pauvreté, de la discorde, de la corruption, des inégalités, une croissance en berne et des pratiques antidémocratiques. Ce phénomène est connu comme la « malédiction des matières premières ». Cette étude du paradoxe de l’abondance passe en revue les initiatives à adopter pour que les ressources du sous-sol bénéficient aux pays qui en détiennent. Deux pays richement dotés en ressources ont su conjurer la malédiction et ont prospéré. Leur parcours est analysé en détail. La Norvège a découvert du pétrole et s’est enrichie grâce à ses choix de politiques et des institutions qui lui ont permis de gérer judicieusement sa trouvaille. Le Chili détient de vastes gisements de cuivre. Son histoire est totalement différente, mais lui aussi a su agir de sorte à ne pas tomber dans le piège d’une dépendance excessive. |
| Date: | 2008–11–02 |
| URL: | http://d.repec.org/n?u=RePEc:oec:devaab:37-fr&r=env |