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on Environmental Economics |
| By: | Burnett, J. Wesley |
| Abstract: | Economists, ecologists, private industries and government decision-makers have long been interested in the relationships between economic growth and environmental quality. These relationships are often the subject of intense public policy debates such as the current debate surrounding global climate change issues. From an ecological or environmental perspective, the argument is often made that economic growth is bad for the environment. But, what story do the data tell? In order to address the question, a estimable model was used to analyze the effects between gross domestic product (GDP) and environmental indications for air pollution in over 100 metropolitan statistical areas in the United States from 2001-2005. The analysis is then expanded to examine the estimable relationship at the state level. The air pollution indicators include ozone, carbon monoxide, nitrogen dioxide, sulfur dioxide, and particulate matter. The results are mixed results. This study finds a statistically significant U-shaped relationship for some of the pollutants; however, the evidence is pretty weak with the exception of ground level ozone. This study does not find evidence to support the traditional EKC inverse U-shaped relationship. These results are compared and contrasted to previous studies providing insight into unresolved theoretical and empirical estimation issues and future research needs. |
| Keywords: | Air Pollution, Environmental Economics, Environmental Kuznets Curve, Fixed effects regression, Environmental Economics and Policy, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saeana:46838&r=env |
| By: | Alfredo Marvão Pereira (Department of Economics, College of William and Mary,); Rui Manuel Marvão Pereira (College of William and Mary) |
| Abstract: | The objective of this paper is to estimate the impact of carbon dioxide emissions from fossil fuel combustion activities on economic activity in Portugal in order to evaluate the economic costs of policies designed to reduce carbon dioxide emissions. We find that energy consumption has a significant impact on macroeconomic activity. In fact, a one ton of oil equivalent permanent reduction in aggregate energy consumption reduces output by €6,340 over the long term, an aggregate impact which hides a wide diversity of effects for different fuel types. More importantly, and since carbon dioxide emissions are linearly related to the amounts of fuel consumed, our results allow us to estimate the costs of reductions in carbon dioxide emissions from different energy sources. We estimate that marginal abatement costs for carbon dioxide are €45.62 per ton of carbon dioxide per year for coal, €66.52 for oil, €91.07 for gas, €191.13 for electricity and €254.23 for biomass. An important policy implication is tha t, once the overall economic costs of reducing carbon dioxide emissions are considered, fuel switching is a no-regrets environmental policy capable of reducing carbon dioxide emissions without jeopardizing economic activity and indeed with the potential for generating favorable economic outcomes. |
| Keywords: | carbon dioxide emissions, energy and the economy, environmental policy, fuelswitching vector autoregressive model |
| JEL: | C32 O13 Q43 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:evo:wpecon:05_2008&r=env |
| By: | Zhang, ZhongXiang |
| Abstract: | The climate-trade nexus has become the focus of academic debate, and has gained increasing attention as governments are taking great efforts to forge a post-2012 climate change regime to succeed the Kyoto Protocol. With concerns about their own competitiveness and growing greenhouse gas emissions in developing countries, some industrialized countries, if not all, are considering whether to impose unilateral trade measures against developing country trading partners. While it is clear that greenhouse gas emissions targets of developed countries need to be tightened further in a post-2012 climate change regime, developing country involvement is also crucial for climate change mitigation and adaptation, given that climate change is a global problem requiring a global response. This raises the issue of which approach would be most likely to stimulate developing countries to take appropriate actions in the post-2012 climate regime. Would positive or negative incentives work best, in other words, do we need carrots, sticks or both? This paper seeks to answer this question. By revisiting the six options for China that I envisioned a decade ago and examining a variety of factors, the paper first discusses how far developing country commitments can go in an immediate post-2012 climate regime. It argues that developing country commitments are most unlikely to go beyond defined policies and measures in this timeframe. The type of border adjustment provisions currently being discussed by most developed countries include more sticks than carrots for developing countries. 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. In order to encourage developing countries to do more to combat climate change, the paper suggests that developed countries should rather focus on carrots. |
| Keywords: | A post-2012 climate change regime; Developing country commitments; Climate-trade nexus; Climate change mitigation and adaptation; Border adjustment measures; WTO scrutiny; The Lieberman-Warner bill |
| JEL: | F18 Q48 Q56 Q54 Q58 |
| Date: | 2009–01–29 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:13174&r=env |
| By: | Walls, Judith L. (University of Michigan); Phan, Philip H. (Johns Hopkins University); Berrone, Pascual (IESE Business School) |
| Abstract: | The natural resource-based view of the company is emerging as a dominant paradigm for understanding the intersection of strategic management and the natural environment. Companies that proactively incorporate a natural environment perspective into their enterprise strategies are said to have sustainable competitive advantages. However, defining and measuring environmental strategy has been challenging, with different approaches yielding inconsistent results. Many studies ignore the empirical difficulties of marrying the theoretical connection between the company's resource base and environmental strategy, and its impact on environmental company performance. In this paper, we apply an inductive approach to derive a measure of environmental strategy theoretically congruent with the natural resource-based-view of the firm. We assess its reliability and, using a multi-trait multi-method matrix, confirm the convergent and discriminant validities of this measure against other measures often used by researchers. We also establish predictive validity of our environmental strategy measure for environmental performance. We discuss the implications of the measure for future research and practice. |
| Keywords: | environmental performance; environmental strategies; inductive study; measures; |
| Date: | 2008–05–08 |
| URL: | http://d.repec.org/n?u=RePEc:ebg:iesewp:d-0754&r=env |
| By: | Frankel, Jeffrey (Harvard U) |
| Abstract: | The global climate regime, as represented by the Kyoto Protocol, may be on a collision course with the global trade policy regime, as represented by the WTO (World Trade Organization). Environmentalists fear that international trade will undercut reductions in greenhouse gas emissions as dirty production migrates to non-participating countries, a phenomenon known as leakage. Meanwhile businesspeople fear the effects on their own competitiveness of the same phenomenon. These fears have now become prominent in the policy-making process. In early 2008, legislation to enact long-term targets for reduced emission of greenhouse gases included provisions for possible barriers against imports from countries perceived as non-participating--in both Washington, DC (where the bills have not yet passed) and in Brussels (where the EU Commission Directive has gone into effect). Such provisions could be interpreted as violations of the rules of the WTO, which poses the nightmare scenario of a WTO panel rejecting a major country's climate change legislation. In light of the hostile feelings that such a scenario would unleash, it would be a nightmare for the supporters of the WTO and free trade as much as for the supporters of the Kyoto Protocol and environmental protection. The issue is just the latest and largest instance of fears among many environmentalists that the WTO is an obstacle to their goals in general. The issue transcends institutions. For the critics, the WTO is a symbol of globalization, and their fears attach also to that larger phenomenon. The first part of this paper discusses the broader issue of whether environmental goals in general are threatened by free trade and the WTO. The second half of the paper focuses exclusively on the narrower question of trade aspects of nations' efforts to implement climate change policy and whether they are likely to come into conflict with the WTO. |
| Date: | 2008–10 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:harjfk:rwp08-058&r=env |
| By: | Ngugi, D; Mullen, J; Bergstrom, J |
| Abstract: | This study seeks to forecast land use change in a North Georgia ecosystem, and estimate the economic value of the ecosystem using benefit transfer techniques. We forecast land use change based on a structural time series model and a simple growth rate model. The study suggests a lower bound willingness to pay value of about USD 16,000 per year to ensure compliance with fishing and drinking water quality standards with regard to fecal coliform bacteria and dissolved oxygen. Conservation efforts are likely to cost less than the cost of defensive behavior or ecosystem restoration. |
| Keywords: | Ecosystem, Economic value, North Georgia, land use, water quality, structural time series, benefit transfer, forecasting., Environmental Economics and Policy, Land Economics/Use, Q51, Q53, Q57, |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saeana:46853&r=env |
| By: | William Shobe (University of Virginia) |
| Abstract: | On March 11, 2008 the University of Virginia Faculty Senate voted in favor of having the university take steps to make it climate neutral. This paper examines whether such a policy is feasible, and further whether pursuing a policy of climate neutrality is likely the best way to spend university resources, if the goal is to reduce the university’s carbon footprint. |
| Keywords: | carbon nuetrality; university; Virginia |
| JEL: | Q4 Q54 |
| Date: | 2008–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:vac:wpaper:wp08-04&r=env |
| By: | Devkota, Nirmala; Paudel, Krishna P.; Parajuli, Shanta |
| Abstract: | Economic incentives or disincentives play a major role on encouraging producers to implement environmentally benign production practices. We evaluated producers’ willingness to pay (WTP) value to represent the level of disincentives that motivate farmers to mitigate nutrient pollution. The result obtained by using ordered response model showed that farm size, farm income, and land available to spread litter are major variables that determine the producers’ WTP. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saeana:46825&r=env |
| By: | Thomas Ziesemer (University of Augsburg, Department of Economics); Peter Michaelis (University of Augsburg, Department of Economics) |
| Abstract: | Recent political discussions about the possible advantages of first-mover behaviour in terms of environmental policy again called attention to the well-established controversy about the effects of environmental regulation on international competitiveness. Conventional theory claims that the trade-off between regulation and competitiveness will be negative while the revisionist view, also known as the Porter Hypothesis, argues for the opposite. Several previous attempts that analysed this quarrel by means of strategic trade game settings indeed support the former claim and conclude that, to increase a firm’s competitiveness, ecological dumping is the most likely outcome in a Cournot duopoly configuration. However, these results were derived from one period games in which so-called innovation offsets are unlikely to occur. The present paper considers a two-period model that includes an intertemporally growing firm-level knowledge capital. In doing so the accumulation of knowledge is modelled in a unilateral and a bilateral variant. It is shown that for both scenarios in period 1 the domestic government will set a higher emission tax rate compared to its foreign counterpart. Furthermore, we identify conditions for which the domestic tax rate will be set above the Pigouvian level in period 1 in both model variants. |
| Keywords: | first-mover behaviour, Porter Hypothesis, strategic environmental policy, environmental regulation, international competitiveness |
| JEL: | F18 Q55 Q58 |
| Date: | 2008–03 |
| URL: | http://d.repec.org/n?u=RePEc:auh:wpaper:0004&r=env |
| By: | Jaffe, Judson (Analysis Group); Stavins, Robert (Harvard U) |
| 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. |
| JEL: | F50 Q20 Q40 Q50 |
| Date: | 2008–10 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:harjfk:rwp08-053&r=env |
| By: | Devkota, Nirmala; Paudel, Krishna P. |
| Abstract: | Nutrient runoff from agricultural land can be reduced through production termination to mitigate water pollution. The willingness to accept value to terminate the broiler production is evaluated using sample selection model. The result showed a positive relationship between the decision to participation and stated WTA value indicating the producers are willing to terminate the production but at high cost. The farmer’s perception about government role on water pollution, farm income, information and awareness about other pollution reduction alternatives play a major role on stated WTA amount as well as on participation decision. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saeana:46826&r=env |
| By: | Sneeringer, Stacy E. |
| Abstract: | Research on environmental regulation’s effects on economic activity has largely focused on manufacturing, ignoring one of the major polluters in the U.S. – commercial agriculture. As livestock production has become increasingly mobile, regulation has become an important criterion in firm location. This article extends the literature on environmental regulation’s economic effects to commercial agriculture by exploiting a series of regulations adopted in North Carolina in the 1990s. During this time, the state’s hog production more than tripled as a consequence of welcoming state legislation. This sudden growth creates an opportunity to study how environmental regulation affects the location of economic activity, the externality costs of legislation aimed at economic growth, and the effects of swine on air pollution. The last of these foci is of particular importance to upcoming federal regulation of large-scale livestock production under the Clean Air Act. By exploiting the distinct trend breaks in hog production in North Carolina, I am able to non-parametrically control for trends in the rest of the country as well as trends in North Carolina prior to the enactment of the lax regulations. I find that the laws led to an additional 11% increase per year in hog production in North Carolina relative to the rest of the U.S., as well as a 10% increase per county per year in ambient air pollution. Through a series of falsification tests and examinations of alternative hypotheses, I conclude that the air pollution is attributable to the hogs; a doubling of production yields a 92% increase in ambient air pollution. The magnitude of the changes in air pollution is large enough to result in significant public health effects, totaling in cost to at least 20% of North Carolina’s hog production revenue. |
| Keywords: | Livestock, externality, regulation, public health, Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Environmental Economics and Policy, Health Economics and Policy, Livestock Production/Industries, Q5, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saeana:46591&r=env |
| By: | Peter Michaelis (University of Augsburg, Department of Economics); Thomas Ziesemer (University of Augsburg, Department of Economics) |
| Abstract: | Policy diffusion refers to the process by which a political innovation – like the introduction of a novel emission tax – disseminates over time among countries. In order to analyze this issue from an economic point of view we develop a simple two-country-model of the taxation of emissions in presence of (possible) policy diffusion. Contrary to the usual Nash setting of simultaneous decision making we consider a Stackelberg game: In the first step the domestic government introduces an emission tax td thus acting as Stackelberg-leader, in the second step the foreign government decides whether or not to introduce an emission tax tf and in the third step the firms decide on their output quantities to be sold on a third country’s market. For the case of an exogenous given probability of policy diffusion we show that the optimal domestic tax rate is c.p. the higher, the higher the probability of policy diffusion is. Moreover, we explore under which conditions first-mover behaviour by the domestic government leads to a higher tax rate compared to the Nash solution In the next step we introduce an endogenous probability of policy diffusion by combining our model with a strategic lobbying approach. As a result, the probability of policy diffusion is c.p. the smaller, the higher domestic tax rate td is. Consequently, in fixing the optimal tax rate the domestic government has to account for the foreign firm’s lobbying activities otherwise it will choose a tax rate too high. |
| Keywords: | emission taxes, first-mover behaviour, strategic environmental policy, policy diffusion |
| JEL: | F18 Q55 Q58 |
| Date: | 2008–02 |
| URL: | http://d.repec.org/n?u=RePEc:auh:wpaper:0003&r=env |
| By: | Jones, DeDe; Gueck, Nicole; Warminski, Patrick |
| Abstract: | The Environmental Quality Incentives Program (EQIP) for the Lesser Prairie Chicken provides monetary compensation to agricultural producers for species habitat development. The advantages and disadvantages of program enrollment, as well as the overall economic impact are evaluated for a typical ranch operation in the Northern Texas Panhandle from 2009-2013. |
| Keywords: | Prairie Chicken, FARM Assistance, EQIP, Environmental Economics and Policy, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saeana:46544&r=env |
| By: | Fabio Cerina; Sauveur Giannoni |
| Abstract: | We build a growth model in which tourism development generates pollution while tourists are pollution adverse. We establish that long run positive growth exists only for a particular value of tourists pollution adversion. Furthermore, we show that an intensive use of facilities is associated with a lower growth rate for destinations specialized in green tourism. We also see that if the destination can choose the degree of use of facilities, tourism will generate positive growth only if tourists are not too much pollution adverse. In this case the growth rate of the economy will be a negative function of tourists' adversion to pollution so that the "greener" the kind of tourism the destination address to, the slower its growth. |
| Keywords: | Pollution, Growth, Tourism Specialization, Use of Facilities |
| JEL: | O41 Q56 L83 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:cns:cnscwp:200822&r=env |
| By: | Engel, Eduardo (Yale U); Fischer, Ronald (U of Chile) |
| Abstract: | The government contracts with a foreign firm to extract a natural resource that requires an upfront investment and which faces price uncertainty. In states where profits are high, there is a likelihood of expropriation, which generates a social cost that increases with the expropriated value. In this environment, the planner's optimal contract avoids states with high probability of expropriation. The contract can be implemented via a competitive auction with reasonable informational requirements. The bidding variable is a cap on the present value of discounted revenues, and the firm with the lowest bid wins the contract. The basic framework is extended to incorporate government subsidies, unenforceable investment effort and political moral hazard, and the general thrust of the results described above is preserved. |
| JEL: | H21 |
| Date: | 2008–01 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:yaleco:34&r=env |
| By: | Seawright, Emily K.; Rister, M. Edward; Lacewell, Ronald D.; Sturdivant, Allen W.; Goolsby, John A.; McCorkle, Dean A. |
| Abstract: | Arundo donax is a large, invasive weed consuming large quantities of water in the riparian area of the Texas Rio Grande Basin. With water availability a concern to the area, the USDA-ARS is investigating biological control agents to increase available water, creating a benefit to both the region’s economy and society in general. |
| Keywords: | Arundo donax, Giant Reed, Water, Economics, Invasive, Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saeana:46740&r=env |
| By: | Diarrassouba, Malick; Boubacar, Inoussa |
| Abstract: | According to FAO (2005) about 13 million hectares of the word’s forest are lost due to deforestation. Naoto (2006) found Africa to lead the list of countries with the highest rate of deforestation. This worrisome situation is further aggravated by the possible negative impacts of climate change due to an increase in the mean global temperature. Evidence supports that Africa is most likely to suffer the most the devastating impacts of natural calamities such as droughts and floods. This paper sought to evaluate the causes of deforestation in 27 Sub-Saharan African (SSA) countries. Our model uses annual data spanning from 1990 to 2004. Trade and urban population tend to be associated with a decline in deforestation. On the other hand, we found strong evidence of the existence of the environmental Kuznets curve with regards to deforestation in Sub-Saharan Africa. Finally, our results suggest that countries with a floating exchange rate regime have the highest rate of deforestation. Should future deforestation in SSA continue at the present pace, the associated costs to their already weakened economies may be substantial? |
| Keywords: | Deforestation, Sub-Saharan Africa, development., International Development, Q23, N 57, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saeana:46799&r=env |
| By: | Zapata, Samuel D.; Benavides, Holger M.; Carpio, Carlos E.; Willis, David B. |
| Abstract: | This study estimates the willingness to pay (WTP) of Loja’s households to protect two micro-basins that supply over 40 percent of potable water to the city. Results indicate that households have an average WTP of $5.80 per month, which corresponds to a 25 percent increase in the self-reported monthly water bill, to preserve the basins. |
| Keywords: | Basin protection, contingent valuation, Loja, Ecuador, Environmental Economics and Policy, Land Economics/Use, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saeana:46773&r=env |
| By: | Wang, Chenguang; Larson, James A.; English, Burton C.; Jensen, Kim |
| Abstract: | Switchgrass for bioenergy production will require substantial storage. This study evaluated costs of alternative baling and on-farm storage systems. Rectangular bales minimize cost if switchgrass is processed immediately after harvest. However, round bales minimize cost if switchgrass is stored under cover for 200 days before transporting to the biorefinery |
| Keywords: | switchgrass, baling, storage, transport, costs, farm, biorefinery, Agribusiness, Agricultural Finance, Environmental Economics and Policy, Farm Management, Production Economics, Resource /Energy Economics and Policy, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saeana:46812&r=env |
| By: | Coxhead, Ian (U of Wisconsin and Norwegian University of Life Sciences); Jayasuriya, Sisira (La Trobe U) |
| Abstract: | The rapid growth of China and, more recently, of India, is having major effects on every facet of the global economy. The supply of labor-intensive manufactured exports (from China in particular) has been accompanied by a huge expansion in their imports both of raw materials and of skill-intensive manufactured parts and components. This ‘offshoring’ of intermediates production by large, labor-abundant economies has economic and environmental implications for other developing economies drawn into their trade networks. We sketch a trade-theoretic model showing how the growth of the ‘giants’ generates adjustment pressures on their trading partners and competitors among developing economies. We discuss in particular how differences in relative factor endowments of resource-rich economies can produce quite different outcomes in the context of product fragmentation and expanding commodity trade. We also explore the effects on production, trade, environment and prospects for future growth, recognizing that commodity extraction and production can have strong environmental impacts, particularly in the context of weak institutions and other market failures. We illustrate these different impacts by considering the cases of Indonesia, Malaysia and Thailand and highlight implications for growth, development and policy. |
| JEL: | F14 |
| Date: | 2008–07 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:wisagr:528&r=env |
| By: | Liu, Zheng; Pagoulatos, Angelos; Hu, Wuyang |
| Abstract: | Combustion-generated pollutants, principally those from solid-fuel including biomass and coal when cooking and heating, bring out a significant public health hazard predominantly affecting poor rural and urban communities in both developed and developing countries. Most of the studies that have been or are currently being performed on the health effects of indoor air pollution from solid fuel combustion focus on developing countries, and on exposure when cooking rather than heating. By using the Kentucky home-place health survey data, this research explore the exposure-response relationship between polluting heating option (such as coal, wood, kerosene)and some specific disease (respiratory disease, asthma and allergy). Logit model was used to get the estimation results. The results indicate that using polluting heating fuel increases the odds of suffering from respiratory disease although this positive effect is not significantly strong. Strong evidence from this study showed that the people with asthma or allergy are less likely to choose polluting heating and using coal as heating fuel has significant positive effect on the prevalence of respiratory disease. Some demographic, socioeconomic and lifestyle characteristics such as gender, race, smoke, exercise do have significant effect on the prevalence of the three diseases. |
| Keywords: | Combustion-generated pollutants, indoor air pollution, heating fuel choice, exposure-response relationship, Environmental Economics and Policy, Health Economics and Policy, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saeana:46728&r=env |
| By: | Matekole, Augustus N.; Westra, John V.; Appelboom, Timothy W. |
| Abstract: | Conventional drainage systems tend to aggravate runoff and nutrient leaching problems on farms especially during the off-season. This study uses a biophysical economic model to identify, evaluate and determine multifunctional benefits of implementing and establishing nitrogen rate fertilizer application and conservation tillage practices as best management practices (BMPs) in the lower Mississippi River Basin (MRB). Simulation results showed that agricultural producers generally preferred no tillage to conventional tillage in reducing nutrient runoffs from fields because of higher net revenue per acre. Finally, given nitrogen runoff restrictions, farmers reduced crop acreage and nitrogen fertilizer application rates to help minimize losses. |
| Keywords: | biopysical economic model, tillage practices, nitrogen fertilizer application rates, MRB, Agricultural and Food Policy, Crop Production/Industries, Environmental Economics and Policy, Farm Management, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saeana:46757&r=env |
| By: | Lang, X.; Reiner, D.; Neuhoff, K. |
| Abstract: | The economic and policy framework for investment decisions in the power generation sector in China are investigated. Our analysis combines a review of the existing legal framework with a survey of stakeholders in industry and government. Based on interviews with over 60 stakeholders, we find a consistent picture emerges of the role of the major institutions and the decision criteria used in investment decisions for conventional thermal power technologies. In contrast, the evolving legal framework for investment in lower-carbon technologies, as reflected primarily in the renewable energy law, produces no clear consensus regarding decision criteria from either government or industry stakeholders. The overall objectives are widely acknowledged, but there is considerable disagreement amongst stakeholders over its implementation. From an investment analysis of risks versus returns, most respondents perceive advanced thermal power investments and small hydro as being more attractive than lower carbon alternatives such as wind power and solar photovoltaic (PV) power. |
| Keywords: | Investment decisions, Institutions, Power sector, Lower-carbon electricity, China. |
| JEL: | N75 L94 Q42 Q58 Q54 |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:0862&r=env |
| By: | Taylor, Robert H.; Almas, Lal K.; Lust, David G. |
| Abstract: | The continued decline in the availability of water from the Ogallala Aquifer has led to an increased interest in conservation policies designed to extend the life of the aquifer to sustain rural economies in the Texas Panhandle. This study evaluates the effectiveness of five policies in terms of changes in the saturated thickness of the aquifer as well as the impact each policy has on crop mix, water use per acre, and the net present value of farm profits over a sixty-year planning horizon for the region. |
| Keywords: | Ogallala Aquifer, Groundwater Conservation, Water Management Policy, Texas Panhandle, Agricultural and Food Policy, Environmental Economics and Policy, Land Economics/Use, Production Economics, Resource /Energy Economics and Policy, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saeana:46746&r=env |
| By: | Dickson, Amanda; Dicks, Michael R. |
| Abstract: | According to the Executive Order 12866, a qualitative and quantitative assessment for any Federal mandate resulting in annual expenditures of $100 million or more is required. This study determines how many of the approximately 34.5 million acres of CRP land is brought back in economic use, how that use is allocated between grazing and haying, and the economic impact. |
| Keywords: | CRP, land allocation, economic impact, Agricultural and Food Policy, Environmental Economics and Policy, Land Economics/Use, Research and Development/Tech Change/Emerging Technologies, |
| Date: | 2008–01–16 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saeana:46807&r=env |
| By: | Runge, C. Ford |
| Abstract: | President-elect Obama has proposed major spending to revitalize America’s infrastructure. But how? First, where we have gone and where we are is the result of an historical co-evolution of public transportation infrastructure and private economic investment. Where we need to go is toward more efficient modes of transport that economize on fuel and energy use and reduce greenhouse gas (GHG) emissions. But how we get there is bounded to a significant degree by this past and present: what economists call “path-dependency.†Second, the historical evolution of public infrastructure has been important to the U.S. economy not simply because it supplemented private sector investments, but because the public investments raised private rates of return over time. National highways and bridges have made possible a shift in the carrying costs of inventory, one consequence of which has been to improve efficiencies in the delivery and availability of consumer goods. As more efficiencies in the use of scarce energy are sought economy-wide, business will be forced to find concentrations of activity along the nodes of supply chains that are more efficient. These adjustments can be facilitated by public infrastructure investments allowing for flexibility in intermodal transport activity, which can be a key aspect of the new administration’s national energy strategy. This brief discussion is divided into three parts: (1) the economics of infrastructure and its relationship to just-in-time inventory management; (2) an example drawn from the food industry case of fresh fruits and vegetables; (3) recommendations for a public investment strategy that maximizes the opportunities for efficiencies along the supply chain, thus conserving energy. |
| Keywords: | Environmental Economics and Policy, Public Economics, |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:ags:umrfwp:46519&r=env |
| By: | Risse, Mathias (Harvard U) |
| Abstract: | In recent work I have tried to revitalize the standpoint of humanity's commonly owning the earth. This standpoint has implications for a range of problems that have recently preoccupied us at the global level, including immigration, obligations to future generations, climate change, and human rights. In particular, this approach helps illuminate what moral claims to international aid small island nations have whose existence is threatened by global climate change. A recent proposal for relocating his people across different nations by President Tong of Kiribati is a case in point. My approach vindicates President Tong's proposal. |
| Date: | 2008–10 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:harjfk:rwp08-054&r=env |
| By: | Lopez, Ramon E. |
| Abstract: | This paper explores the conditions for sustainable development through two models of economic growth that elucidates two extremes; an open economy with constant prices, and a closed economy with endogenous prices. Sustainable development is easier to achieve in the case of the former than the latter. A closed economy requires a high degree of flexibility of its consumers, with an elasticity of substitution of clean goods substantially above 1 in order to achieve sustainable development. Three mechanisms have to work in tandem: the technique, composition, and growth-limit effects. In contrast, the open economy requires no flexibility on the part of its consumers and may achieve sustainable development through only one mechanism – the composition effect. For the open economy case, the composition effect can completely suppress the technique effect, resulting in both mechanisms acting like substitutes. On the other hand, for the closed economy case, both effects are highly complementary. The historical experience of the North indicates more similarities with the open economy paradigm. |
| Keywords: | Environmental Economics and Policy, International Development, International Relations/Trade, Labor and Human Capital, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ags:umdrwp:46592&r=env |
| By: | Debnath, Deepayan; Stoecker, Arthur; Boyer, Tracy; Sanders, Larry |
| Abstract: | The purpose of this paper is to determine the optimal allocation of reservoir water among consumptive and non-consumptive uses. A non-linear mathematical programming model is developed to optimally allocate Lake Tenkiller water among competing uses that maximize the net social benefit. A mass balance is used to determine the level and volume of water in the lake. This paper examines the effect of water management on lake resources when recreational values are and are not included as control variables in the optimization process. Results show that maintaining the lake level to the ‘normal lake level’ of 632 feet during the summer months generates more recreational benefit rather than reducing the lake level by releasing water for hydro power generation. |
| Keywords: | consumptive and non-consumptive use, mass balance equation, non-linear mathematical programming, optimization, recreational uses, water allocation, Resource /Energy Economics and Policy, |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saeana:46842&r=env |
| By: | Hélène Hamisultane (EconomiX - CNRS : UMR7166 - Université de Paris X - Nanterre) |
| Abstract: | Climate changes have sparked growing interest for the weather derivatives which are financial contracts relied on a meteorological index and allowing companies to hedge against climate risk. These contracts present the particularity of providing compensation to the buyer when the meteorological index crossed a limit agreed in advance with the seller. In order to evaluate these products and to manage at best the risks associated with their exchange, it is important to be able to accurately predict the evolution of the climate variable. Several processes have been proposed in the literature to model the behaviour of the temperature which is the basis of most of the traded weather instruments. These processes relate mainly to the univariate time series modelling which is founded on the study of the autocorrelation of the stationary variable. But we know that the behaviour of the temperature can be influenced by climatic factors such as rain, wind or sunshine. In our paper, we propose to take into account the impact of sunshine on the temperature as well as the asymmetric effect of the shocks on the volatility by estimating a structural model with a periodic threshold GARCH. We show that this model provides better out-sample forecasts for 30 and 60 days ahead than those obtained by the univariate autoregressive-conditional heteroskedasticity process. |
| Keywords: | weather derivatives; structural model; Markov chain; threshold GARCH; Monte-Carlo simulations; Value-at-Risk. |
| Date: | 2008–08 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00355857_v1&r=env |
| By: | Georges A. Tanguay; Juste Rajaonson; Jean-François Lefebvre; Paul Lanoie |
| Abstract: | We analyze 17 studies of the use of sustainable development indicators (SDI) in an urban setting. The analysis reveals a lack of consensus not only on the conceptual framework and the approach favored, but also on the selection and optimal number of indicators. First, by performing different classifications and categorizations of SDI we identify problems inherent in territorial practices that use SDI. Second, we argue that the lack of consensus in several steps of the creation of SDI stems notably from the ambiguity in the definitions of sustainable development, objectives for the use of such indicators, the selection method and the accessibility of qualitative and quantitative data. Third, we propose a selection strategy for SDI through which we demonstrate the need to adopt a parsimonious list of SDI covering the sustainable development components and their constituent categories as broadly as possible while minimizing the number of indicators retained. <P>Nous analysons 17 études traitant de l’utilisation d’indicateurs de développement durable (IDD) en milieu urbain pour différents pays, provinces ou états occidentaux. 188 IDD différents sont recensés dans ces études dont 135 (72 %) ne sont utilisés qu’une ou deux fois. L’analyse de ces études révèle ainsi un faible consensus non seulement au niveau du cadre conceptuel ou de l’approche préconisée, mais aussi en ce qui concerne la sélection et le nombre d’indicateurs optimal. Premièrement, différents classements et catégorisations des IDD recensés nous permettent d’observer et d’identifier les problèmes inhérents aux pratiques territoriales ayant recours aux IDD. Deuxièmement, nous argumentons que l’absence de consensus à plusieurs étapes de la création des IDD émergent entre autres de l’ambiguïté occasionnée par la définition du développement durable, des objectifs visées par l’utilisation de tels indicateurs, de la méthode de sélection préconisée et de l’accessibilité des données qualitatives et quantitatives en cette matière. Troisièmement, nous proposons une stratégie de sélection des IDD (que nous appelons SuBSeleC) où nous démontrons la nécessité d’adoption d’une liste parcimonieuse d’IDD couvrant le plus largement possible les volets du développement durable et des catégories qui les composent tout en minimisant le nombre d’indicateurs retenus. Le résultat est une liste concise et moins redondante d’indicateurs moins sectoriels et plus intégrateurs ayant l’avantage d’englober les dimensions intégrées du développement durable. |
| Keywords: | Cities, Indicators, Sustainable Development, Environment, Local Governance., Villes, indicateurs, développement durable, environnement, gouvernance locale. |
| Date: | 2009–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2009s-02&r=env |
| By: | Bhattacharjee, Sanjoy; Petrolia, Daniel R.; Hanson, Terrill R. |
| Abstract: | In this study, we investigate the link between hurricane characteristics, demographics of the Coastal Gulf of Mexico residents, including their household location, and their respective evacuation behavior. Our study is significantly different from the previously made studies on hurricane evacuation behavior in two ways. At first, the research data is collected through recording responses to a series of hypothetical situations which are quite identical to the set of information that people are used to see during the hurricane season. Secondly, this study addresses and includes response heterogeneity while analyzing sample behavior, an issue which has not been addressed in previous research on hurricane evacuation behavior in spite of its importance. |
| Keywords: | Evacuation Behavior, Hurricane, Response Heterogeneity, Environmental Economics and Policy, Research Methods/ Statistical Methods, Risk and Uncertainty, C35, Q54, |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saeana:46845&r=env |
| By: | Kristjanson, Patti (?); Reid, Robin (?); Dickson, Nancy (?); Clark, William C. (Harvard U); Vishnubhotla, Prasad (?); Romney, Dannie (?); Bezkorowajnyj, Peter (?); Said, Mohammed (?); Kaelo, Dickson (?); Makui, Ogeli (?); Nkedianye, David (?); Nyangaga, Julius (?); Okwi, Paul (?); Puskur, Ranjitha (?); Tarawali, Shirley (?); MacMillan, Susan (?); Grace, Delia (?); Randolph, Tom (?); Affognon, Hippolyte (?) |
| Abstract: | This paper asks "What kinds of approaches and institutions, under what sorts of conditions, are most effective for harnessing scientific knowledge in support of strategies for environmentally sustainable development and poverty alleviation?" In applying an innovative conceptual framework to a diverse set of sustainable poverty-focused projects undertaken in numerous African and Asian countries, we found that strategies key to closing gaps between knowledge and action include: combining different kinds of knowledge, learning and bridging approaches, strong and diverse partnerships that level the playing field, and building capacity to innovate and communicate. |
| JEL: | O13 O16 O17 O31 |
| Date: | 2008–09 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:harjfk:rwp08-045&r=env |
| By: | Summers, Lawrence (Harvard U); Zeckhauser, Richard (Harvard U) |
| Abstract: | Policymaking for posterity involves current decisions with distant consequences. Contrary to conventional prescriptions, we conclude that the greater wealth of future generations may strengthen the case for preserving environmental amenities; lower discount rates should be applied to the far future, and special effort should be made to avoid actions that impose costs on future generations. Posterity brings great uncertainties. Even massive losses, such as human extinction, however, do not merit infinite negative utility. Given learning, greater uncertainties about damages could increase or decrease the optimal level of current mitigation activities. Policies for posterity should anticipate effects on: alternative investments, both public and private; the actions of other nations; and the behaviors of future generations. Such effects may surprise. This analysis blends traditional public finance and behavioral economics with a number of hypothetical choice problems. |
| JEL: | D64 D81 D90 Q54 |
| Date: | 2008–08 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:harjfk:rwp08-040&r=env |