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on Environmental Economics |
| By: | Sahlén, Linda (Department of Economics, Umeå University) |
| Abstract: | This thesis consists of four self-contained papers, which are all related to important environmental and natural resource issues from a developing country perspective. Paper [I] concerns climate policy and addresses the potential welfare gains of introducing a technology transfer from the North (richer countries) to the South (poorer countries). The results largely depend on the environmental policy in the pre- transfer resource allocation and, in particular, whether or not the South abates its own emissions. Although the technology transfer is desirable from a “global social planners” point of view, it is shown that the incentives to use the transfer might be weak from the perspective of the North; at least if the South takes its own measures to reduce emissions. However, in a situation where the North is committed to emission reductions according to the Kyoto protocol, it is shown that there will clearly be incentives for the North to use the technology transfer in order to reach the Kyoto targets in a more cost efficient way. In paper [II], the likely effects of an environmental fiscal reform in Namibia are examined by means of a Computable General Equilibrium (CGE) model. The results show that the introduction of an environmental fiscal reform, where taxes on natural and environmental resources (fish rents, energy and water) are recycled to the economy in different ways might give rise to benefits in terms of GDP, employment and income distribution, in addition to the environmental impacts. While subsidizing unskilled labour would give the most favourable outcome in terms of real GDP and employment impacts, a decrease in food taxes might be a more interesting option if GDP, employment, income distribution and environmental impacts are considered in combination. In paper [III], the value of irrigation water used for different crop alternatives in the Hardap region in Southern Namibia is estimated. The study finds that all crop alternatives that farmers in the region currently choose among, will remain financially viable after the planned increases in user charges. However, if full cost recovery is to be achieved in the future, substantial changes in the agricultural production will most likely be necessary. The method is also extended in order to study the potential effects on total water demand if further increases in user charges are implemented. Paper [IV] studies the likely effects of exogenous international food and oil price shocks on the Namibian economy. This is particularly interesting in a country where the domestic consumption of corn and petroleum products is mainly imported, and where water scarcity represents one of the main constraints to agricultural expansion. The results show that the Namibian economy will be negatively affected from the food and oil price increases, and water scarcity will further limit the ability of the economy to adapt to international oil and food price increases. |
| Keywords: | Climate policy; technology transfer; computable general equilibrium model; environmental fiscal reform; revenue recycling; water scarcity; resource prices |
| JEL: | D58 D62 H21 O13 Q18 Q25 Q52 |
| Date: | 2009–01–14 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:umnees:0762&r=env |
| By: | Andrew Sharpe; Jean-François Arsenault; Alexander Murray; Sharon Qiao |
| Abstract: | The Alberta oil sands reserves represent a very valuable energy resource for Canadians. In 2007, Statistics Canada valued the oil sands at $342.1 billion, or 5 per cent Canada?s total tangible wealth of $6.9 trillion. Given the oil sands? importance, it is essential to value them appropriately. In this report, we critically review the methods used by Statistics Canada in their valuation of the Alberta oil sands. We find that the official Statistics Canada estimates of the reserves (22.0 billion barrels) of Alberta?s oil sands are very small compared to those obtained using more appropriate definitions, which results in an underestimation of the true value of the oil sands. Moreover, the failure to take into account the projected growth of the industry significantly magnifies this underestimation. We provide new estimates of the present value of oil sands reserves based on a set of alternative assumptions that are, we argue, more appropriate than those used by Statistic Canada. We find that the use of more reasonable measures of the total oil sands reserves (172.7 billion barrels), extraction rate (a linear increase from 482 million barrels per year in 2007 to 1,350 million barrels in 2015, and constant thereafter) and price ($70 per barrel, 2007 CAD) increases the estimated present value of the oil sands to $1,482.7 billion (2007 CAD), 4.3 times larger than the official estimate of $342.1 billion. Using our preferred estimate, Canada?s total tangible wealth increases by $1.1 trillion (17 per cent), and reaches $8.0 trillion with oil sands now accounting for 18 per cent of Canada?s tangible wealth. The importance of these revisions is also demonstrated by their impact on the per-capita wealth of Canadians, which increases from $209,359 to $243,950, or by $34,591 (or 17 per cent). Given the importance of the oil sands for Canada, Statistics Canada should undertake a review of its methodology. In light of the growing body of climatologic literature supporting an association between anthropogenic GHG emissions and global climate change, no analysis of the „true value? of the oil sands would be complete without an accounting of the social costs of the GHG emissions that arise from oil sands development. According to our baseline estimates, the oil sands impose a total social cost related to GHG emissions of $69.4 billion. In making this estimate, we assume that each barrel of oil sands output imposes a social cost of $2.25 (based on a cost of $30/tCO2-e and an intensity of 0.075 tCO2-e/bbl). Our preferred estimate of the net present value of oil sands wealth net of GHG cost is thus $1,413.3 billion, 4.1 times greater than the Statistics Canada estimate which does not account for any environmental costs. This report does not account for non-GHG related environmental and social costs. A comprehensive valuation of all environmental costs are needed to assess whether future benefits derived from oil sands development are outweighed by even larger environmental costs. |
| Keywords: | Cost-Benefit, Oil Sands, Environmental Damage, CO2 Emissions, Alberta, Energy, Natural Resources, Valuation |
| JEL: | E20 E21 Q43 Q51 Q54 O51 |
| Date: | 2008–11 |
| URL: | http://d.repec.org/n?u=RePEc:sls:resrep:0807&r=env |
| By: | Argentino Pessoa (Faculdade de Economia, Universidade do Porto); Mário Rui Silva (Faculdade de Economia, Universidade do Porto) |
| Abstract: | Natural resources and physical cultural resources, termed in this paper as “Environmental Resources”, can be important assets for regional competitiveness and innovation. In recent years, these kinds of assets are being more considered in regional development strategies, because they can be a source of differentiation and of new competitive advantages. In this paper we discuss the role of environmental resources in regional innovation policies. We begin by relating environmental resources with regional development and by emphasizing some opposite views in what refers to the function of environmental resources in regional development. Next we deal with the relationship between regional competitive advantages and innovation strategies. The specificities and problems that arise when the aim is to construct competitiveness advantages through environmental resources valorisation are the core of section 3. In that section, we highlight the characteristics of environmental resources and we check the applicability of the “natural resource curse” to the dynamics based on the valorisation of environmental resources. The reasons that justify the public intervention as well as difficulties concerning the adequate level of intervention (local / regional / national) are also examined. The paper ends with some conclusions and policy implications. |
| Keywords: | Competitiveness, Environment, Innovation, Innovation Policies, Regional Development |
| JEL: | O3 Q0 Q2 Q5 R5 |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:por:fepwps:308&r=env |
| By: | Annicchiarico, Barbara; Bennato, Anna Rita; Costa, Andrea |
| Abstract: | This paper examines the relationship between economic growth and carbon dioxide emissions in Italy for the period 1861-2003. Using cointegration, rolling regression and error correction modeling techniques, we find that growth and carbon dioxide emissions are strongly interrelated, and elasticity of pollutant emissions with respect to income has been decreasing over time. For the period 1960-2003 EKC estimates provide evidence for the existence of a reasonable "turning point". However, given the heavy dependence of Italian economy upon fossil fuels, meeting the emissions targets in the accomplishing of the Kyoto Protocol is a very challenging task. |
| Keywords: | Environmental Kuznets Curve; Carbon Dioxide Emissions; Time Series Analysis; Italian Economy |
| JEL: | Q50 C22 |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:12817&r=env |
| By: | Julien Chevallier (EconomiX - CNRS : UMR7166 - Université de Paris X - Nanterre) |
| Abstract: | Stemming from politically given market imperfections in a tradable permits system, this paper develops a Stackelberg game with two types of non-cooperative agents to describe how a large -potentially dominant- agent may exercise market power at the expense of a competitive fringe. In a dynamic framework with full forward and backward temporal flexibility (i.e. 1:1 Intertemporal Trading Ratio), this intra-industry model then suggests an optimal allocation criterion for grandfathered permits based on recent emissions. This paper contributes to the permit trading literature by shedding some light on the decision to allow banking and borrowing, a debate which is typically overlooked by the debate to introduce the permits market itself among other environmental regulation tools. Provisional results are presented under perfect information. |
| Keywords: | emissions trading;banking;borrowing;market power;differential game |
| Date: | 2009–01–15 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00124713_v1&r=env |
| By: | AMIGUES, Jean-Pierre; MOREAUX, Michel |
| JEL: | O30 O41 Q01 Q32 |
| Date: | 2008–11 |
| URL: | http://d.repec.org/n?u=RePEc:ide:wpaper:10018&r=env |
| By: | Mandell, Svante (vti - Swedish National Road and Transport Research Institute); Wråke, Markus (IVL); Myers, Erica C. (RFF - Resources for the future); Burtraw, Dallas (RFF - Resources for the future); Holt, Charles A. (University of Virginia - Department of Economics) |
| Abstract: | An important feature in the design of an emissions trading program is how emissions allowances are initially distributed into the market. In a competitive market the choice between an auction and free allocation should, according to economic theory, not have any influence on firms’ production choices nor on consumer prices. However, many observers expect the method of allocation to affect product prices. This paper reports on the use of experimental methods to investigate behavior with respect to how prices will be determined under a cap-and-trade program. Participants initially display a variety of pricing strategies. However, given a simple economic setting in which earnings depend on this behavior, we find that subjects learn to consider the value of allowances and overall behavior moves toward that predicted by economic theory. |
| Keywords: | carbon dioxide; climate change; emissions trading; distributional effects; electricity; allocation; auctions |
| JEL: | C91 D44 |
| Date: | 2009–01–13 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:vtiwps:2009_001&r=env |
| By: | Eftichios S. Sartzetakis (Department of Economics, University of Macedonia); Anastasios Xepapadeas (Department of International and European Economic Studies, Athens University of Economics and Business); Emmanuel Petrakis (Department of Economics University of Crete) |
| Abstract: | The present paper examines, within a dynamic framework, the use of information provision as a policy instrument to supplement environmental taxation. We assume that at least a fraction of consumers do not posses the required information to make the optimal choices, and that their behavior at each time period depends on the accumulated stock of information. We show that, as the accumulated stock of information provision increases, both the optimal level of information provided at each period of time and the optimal tax rate decline over time. Our results provide strong evidence in support of information campaigns as a policy instrument to supplement traditional environmental policies. Information provision can sift the demand towards environmentally friendly products over time and thus, reduce the required level of the tax rate. |
| Keywords: | information provision, enviromental taxation |
| JEL: | Q53 Q58 D62 D82 |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:mcd:mcddps:2009_02&r=env |
| By: | CHAKRAVORTY, Ujjayant; LEACH, Andrew; MOREAUX, Michel |
| JEL: | Q12 Q32 Q41 |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:ide:wpaper:10017&r=env |
| By: | Ramprasad Sengupta |
| Abstract: | An analysis of the economic implication of judicial activism of the apex court of India in the regulation of automotive air pollution is analysed. It estimates the health damage cost of urban air pollution for 35 major urban agglomerations of India arising from automotive emissions and the savings that can be achieved by the regulation of fuel quality so as to conform to the Euro norms. It has used the results of some US based study and has applied the transfer of benefit method from the US to the Indian situation for the purpose. The paper finally makes a benefit cost analysis of refinery upgradation for such improvement of fuel quality. |
| Keywords: | fuel quality, health, urban pollution, air, cost benefit analysis, US, Indian, ecoomic implication, automotive, Euro, , |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:1841&r=env |
| By: | Zhang, ZhongXiang |
| Abstract: | The climate-trade nexus gains increasing attention as governments are taking great efforts to forge a post-2012 climate change regime to succeed the Kyoto Protocol. This raises the issues of the scope of trade-related measures and of when and how they could be used. To gain some guidance on the scope of trade provisions in a post-2012 climate regime, this paper first discusses the Montreal Protocol in which such trade provisions have been included. The paper argues that while it is unlikely for developing country parties to agree the inclusion of trade-related measures in a post-2012 climate regime, trade-related measures should, at the very least, be contemplated for a set of industrialized countries (Annex I or II countries) as part of the evolving climate regime. It should be specified how these measures will apply to non-complying parties within this group and when and how unilateral trade measures can be used against countries outside the group. To that end, the paper emphasizes that there is a clear need to define comparable efforts towards climate mitigation and adaptation to discipline the use of unilateral trade measures at the international level, as the Lieberman-Warner bill in the U.S. Senate demonstrated great possibility that some industrialized countries, if not all, are considering the term “comparable” as the standard by which to assess the efforts made by their trading partners in order to decide on whether to impose unilateral trade measures on them. While that bill died on the floor of the Senate, this is by no means the end of the prospect for border adjustment type of unilateral trade measures bill. The paper argues that the Lieberman-Warner type of border adjustment bill, in its current form, is likely to face WTO-consistency and methodological challenges. It also holds out more sticks than carrots to developing countries. In order to encourage developing countries to do more to combat climate change, the paper suggests that developed countries should clearly focus on carrots. Sticks can be incorporated, but only if they are credible and realistic and serve as a useful supplement to push developing countries to take actions or adopt policies and measures earlier than would otherwise have been the case. |
| Keywords: | Post-Kyoto climate negotiations; Trade-related measures; Developing countries |
| JEL: | F18 Q48 Q56 Q54 Q58 |
| Date: | 2008–09–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:12782&r=env |
| By: | Enea, Constanta |
| Abstract: | Every organization determined to embrace ISO 14000 should have a supporting policy manual, procedures, data collection forms, etc. ISO 14000 is actually a series of international standards on environmental management. It provides a framework for the development of both the system and the supporting audit program. |
| Keywords: | Environmental Management System; system procedures |
| JEL: | E00 A10 |
| Date: | 2008–11–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:12921&r=env |
| By: | Bettina Kretschmer; Sonja Peterson; Adriana Ignaciuk |
| Abstract: | Biofuels and other forms of bioenergy have received increased attention in recent times: They have partly been acclaimed as an instrument to contribute to rural development, energy security and to fight global warming but have been increasingly come under attack for their potential to contribute to rising food prices. It has thus become clear that bioenergy cannot be evaluated independently of the rest of the economy and that national and international feedback effects are important. In this paper we describe how the CGE model DART is extended to include first-generation biofuel production technologies. DART can now be used to assess the efficiency of combined climate and bioenergy policies. As a first example the effects of a 10% biofuel target in the EU are analyzed |
| Keywords: | biofuels, CGE model, climate policy |
| JEL: | D58 Q48 Q54 |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1472&r=env |
| By: | Lone Grønbæk Kronbak (Department of Environmental and Business Economics, University of Southern Denmark); Marko Lindroos (Department of Economics and Management, University of Helsinki) |
| Abstract: | Game-theoretic fisheries models typically consider cases where some players harvest a single common fish stock. It is, however, the case that these types of models do not capture many real world mixed fisheries, where species are bio-logical independent or dependent. The present paper considers cases where several non-cooperative exploiters are involved in mixed fisheries. This paper is targeting biodiversity preservation by setting up a two species model with the aim of ensuring both species survive harvesting of exploiters adapting a non-cooperative behaviour. The model starts out as a multi-species model without biological dependency and is then modified to include also biological dependency. We contribute to the literature by analytically finding the limits on the number of players preserving both species including the conditions to be satisfied. For visual purposes we simulate a two species model with different kind of interrelationship. |
| Keywords: | Biodiversity preservation, non-cooperative game, multi-species fisheries, bio-economic modelling |
| JEL: | C70 Q22 Q28 |
| Date: | 2008–08 |
| URL: | http://d.repec.org/n?u=RePEc:sdk:wpaper:79&r=env |
| By: | Herrmann, Michael; Svarin, David |
| Abstract: | Bangladesh, like other least developed countries (LDC), has a large rural population and agricultural labor force. At the turn of the Millennium 75 percent of the LDCs’ population still lived in rural areas and 71 percent of the LDCs’ labor force was involved in agriculture. Yet, even the least developed countries are affected by rapidly accelerating rural-to-urban migration. This decade, 2001-2010, is the first ever in which the urban population grows faster than the rural population in the LDCs. And this change is also associated with a historic employment transition, where the agricultural sector gradually loses importance. Both the population and the employment transition that can be observed for the group of least develops countries, are largely attributable to LDC's in Asia, and in particular Bangladesh. The very large rural-urban migration in Bangladesh, in comparison with other least developed countries, is attributable to relatively strong push factors on the one hand, and strong pull factors on the other. The principle factor that encourages people to leave their homes in the country side is the frequent recurrence of natural disasters, which undermine agricultural development and cause food crisis. By contrast, the principle factor that attracts people to urban centers is the expansion of the non-agricultural sectors, industry and services, which promises jobs and higher household incomes. |
| Keywords: | Bangladesh; climate change; rural-urban migration; agricultural development; urban planning; dual-dual model; employment; poverty |
| JEL: | O18 J31 R0 J21 J61 Q54 I32 |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:12879&r=env |
| By: | Céline Gisèle Jung (Centre Emile Bernheim, Solvay Business School, Université Libre de Bruxelles, Brussels.) |
| Abstract: | Industrial waste is usually sorted in order to valorise most of minerals, polymers and metals. This sorting does generate a sorting residue with a rather high calorific value. The present study shows the opportunities of producing gaseous or liquid substitution fuels by pyrolysis or gasification of industrial sorting residues. By the use of the predictive model, it is possible to evaluate, for various inputs (tyres, fluffs, mixed plastics and biomass residues), the mass en energy balance for each of these thermal treatments. Opportunities to produce substitution fuels issued from these waste streams are evaluated. |
| Date: | 2008–09 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:09-001&r=env |
| By: | Sundström, Kristian (Swedish Institute for Food and Agricultural Economics (SLI)); Andersson, Henrik (VTI) |
| Abstract: | This paper examines the value to Swedish citizens of reducing the risk for salmonella bacteria in chicken filet. The contingent valuation (CV) study is based on the results of a postal questionnaire that was distributed to 2 000 randomly selected Swedish citizens aged 18-74. The valuation format used is a stated preference double bounded dichotomous choice. We employ the non-parametric Turnbull Lower Bound method in combination with Monte Carlo simulations to obtain lower bound estimates of the mean and median values of expected willingness-to-pay (WTP) for reducing the risk for salmonellosis, as well as values of a statistical case (VSC) and a statistical life (VSL). We find a VSC of between SEK 121 045 (110 297–131 814) and SEK 182 966 (167 915–197 896) depending on the format used (values in parentheses constitute a 90 percent confidence interval). VSL values of SEK 13.3 million and 48.3 million are estimated using different formats, but neither estimation is statistically significant. Since this is the first Swedish study on WTP for food safety, mean and median values of VSL and VSC cannot be directly compared with previous results, but the values obtained are in line with comparable Swedish studies on WTP for traffic safety as well as with international studies related to food safety. We do not find any strong linkage between WTP and income, age or gender. Scale sensitivity seems to depend on which model is chosen, while household size, risk perception ability and perceived Quality Adjusted Life Years (QALY:s) lost seem to be strong predictors of WTP. |
| Keywords: | Contingent valuation; Food safety; Health risk; Salmonellosis |
| JEL: | C14 D12 Q18 |
| Date: | 2009–01–15 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:vtiwps:2009_002&r=env |