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on Environmental Economics |
| By: | Arief Anshory Yusuf (Department of Economics, Padjadjaran University) |
| Abstract: | It is widely acknowledged that the three dimensions of sustainable development economic, social, and environmental-are crucial, inseparable and inter- related. In many cases, however, their goals come into conflict with one another. This conflict often arises in the case of environment-related policies, the issue of climate change mitigation being no exception. Climate change mitigation policies to reduce carbon emissions from the energy sector by way of measures such as introducing a carbon tax have been widely known to be regressive i.e., the burden is borne more by lower income rather than higher income households, thereby making income distribution less equitable or fair. An expectation of such an adverse distributive effect may even prevent the policy from being implemented in the first place. |
| Keywords: | Carbon tax, Climate change, Indonesia |
| JEL: | Q58 Q54 |
| Date: | 2008–10 |
| URL: | http://d.repec.org/n?u=RePEc:eep:pbrief:pb2008101&r=env |
| By: | Chakravorty, Ujjayant (University of Alberta, Department of Economics); Magne, Bertrand (Paul Scherer Institut); Moreaux, Michel (Toulouse School of Economics) |
| Abstract: | This paper models nuclear energy by developing a dynamic model with endogenous substitution among polluting nonrenewable resources. Nuclear power can reduce the cost of generating clean energy significantly. However, continued expansion of nuclear capacity at historical rates is likely to cause a scarcity of uranium and make nuclear power costlier than other energy sources within a few decades. Renewables such as solar, wind and biomass, clean coal and next generation nuclear power may supply significant amounts of clean energy late this century. The cost of generating low carbon energy increases sharply if global carbon concentration targets are set at 450 ppm instead of 550 ppm. A policy implication is that the current political and regulatory impediments to the expansion of nuclear power generation may prove to be costly in a post-Kyoto world. |
| Keywords: | energy resources; environmental regulation; global warming; hotelling models; resource substitution |
| JEL: | Q32 Q41 Q48 |
| Date: | 2009–04–16 |
| URL: | http://d.repec.org/n?u=RePEc:ris:albaec:2009_019&r=env |
| By: | Christoph Böhringer and Knut Einar Rosendahl (Statistics Norway) |
| Abstract: | Tradable black (CO2) and green (renewables) quotas gain in popularity and stringency within climate policies of many OECD countries. The overlapping regulation through both instruments, however, may have important adverse economic implications. Based on stylized theoretical analysis and substantiated with numerical model simulations for the German electricity market, we show that a green quota imposed on top of a black quota does not only induce substantial excess cost but serves the dirtiest power technologies as compared to a black quota regime only. |
| Keywords: | Emissions Trading; Tradable Green Certificates; Overlapping Regulation |
| JEL: | D61 H21 H22 Q58 |
| Date: | 2009–04 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:581&r=env |
| By: | Edward Nell, Willi Semmler, and Armon Rezai (New School for Social Research, New York, NY) |
| Keywords: | economic growth; climate change |
| Date: | 2009–02 |
| URL: | http://d.repec.org/n?u=RePEc:epa:cepawp:2009-4&r=env |
| By: | Alfred Greiner, Lars Grüne and Willi Semmler (New School for Social Research, New York, NY) |
| Keywords: | climate change; global warming |
| Date: | 2009–03 |
| URL: | http://d.repec.org/n?u=RePEc:epa:cepawp:2009-7&r=env |
| By: | Daiju Narita |
| Abstract: | CCS (carbon dioxide capture and storage) is an issue which has received increasing attention in the debate on climate change over the last several years because of its relative technical simplicity and very large potential in reducing carbon dioxide emissions. The absence of secondary benefits and uncertainties associated with this approach, however, would require analysts to conduct fine cost-benefit comparisons vis-à-vis other mitigation options. The paper is to provide a perspective on future cost-benefit discussions of CCS by highlighting the optimality of CCS use viewed as a non-renewable resource with a limited capacity. Scarcity of CCS (storage) capacity should involve a shadow price which could raise CCS’s effective price – this is a fair assumption given the technological assessments of CCS so far, but no economic study has explicitly investigated this characteristic before. By using a simple analytical dynamic optimization model, we examine the optimal paths of CCS use, CCS’s real price inclusive of the shadow price, and their difference from the operational price. A particular implication of the model is that if all else is equal, the shadow price of CCS could make the technology relatively less attractive than renewable energy due to CCS’s reliance on scarce reservoirs and the resultant shadow value. This serves as a justification for giving differentiated incentives to different CO2 reduction options: more precisely, more encouragement should be given to renewable energy in comparison to CCS |
| Keywords: | Carbon dioxide capture and storage (CCS), climate change, energy, dynamic optimization |
| JEL: | Q3 Q4 Q54 |
| Date: | 2009–04 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1508&r=env |
| By: | Tol, Richard S. J. (ESRI) |
| Date: | 2009–04 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp288&r=env |
| By: | Hennlock, Magnus (Department of Economics, School of Business, Economics and Law, Göteborg University) |
| Abstract: | Knightian uncertainty in climate sensitivity is analyzed in a two sectoral integrated assessment model (IAM), based on an extension of DICE. A representative household that expresses ambiguity aversion uses robust control to identify robust climate policy feedback rules that work well over IPCC climate-sensitivity uncertainty range [1]. Ambiguity aversion, together with linear damage, increases carbon cost in a similar way as a low pure rate of time preference. Secondly, in combination with non-linear damage it makes policy responsive to changes in climate data observations as it makes the household concerned about misreading sudden increases in carbon concentration rate and temperature as sources to global warming. Perfect ambiguity aversion results in an infinite expected shadow carbon cost and a zero carbon-intensive consumption path. Dynamic programming identifies an analytically tractable solution to the model.<p> |
| Keywords: | robust control; climate change policy; carbon cost; Knightian uncertainty; ambiguity aversion; integrated assessment models |
| JEL: | C61 C73 Q54 |
| Date: | 2009–04–17 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0354&r=env |
| By: | Armon Rezai, Duncan K. Foley, and Lance Taylor (New School for Social Research, New York, NY) |
| Keywords: | global warming; climate change |
| Date: | 2009–02 |
| URL: | http://d.repec.org/n?u=RePEc:epa:cepawp:2009-3&r=env |
| By: | Philip W. Gassman (Center for Agricultural and Rural Development (CARD)); Jimmy R. Williams; Xiuying Wang; Ali Saleh; Edward Osei; Larry M. Hauck; R. Cesar Izaurralde; Joan D. Flowers |
| Abstract: | The Agricultural Policy Environmental eXtender (APEX) model was developed by the Blacklands Research and Extension Center in Temple, Texas. APEX is a flexible and dynamic tool that is capable of simulating a wide array of management practices, cropping systems, and other land use across a broad range of agricultural landscapes, including whole farms and small watersheds. The model can be configured for novel land management strategies, such as filter strip impacts on pollutant losses from upslope cropfields, intensive rotational grazing scenarios depicting movement of cows between paddocks, vegetated grassed waterways in combination with filter strip impacts, and land application of manure removal from livestock feedlots or waste storage ponds. A description of the APEX model is provided, including an overview of all the major components in the model. Applications of the model are then reviewed, starting with livestock manure and other management scenarios performed for Livestock and the Environment: A National Pilot Project (NPP), and then continuing with feedlot, pesticide, forestry, buffer strip, conservation practice, and other management or land use scenarios performed at the plot, field, watershed, or regional scale. The application descriptions include a summary of calibration and/or validation results obtained for the different NPP assessments as well as for other APEX simulation studies. Available APEX Geographic Information System–based or Windows-based interfaces are also described, as are forthcoming future improvements and additional research needs for the model. |
| Keywords: | APEX, best management practices, farm and watershed simulations, soil carbon, water quality. |
| Date: | 2009–04 |
| URL: | http://d.repec.org/n?u=RePEc:ias:cpaper:09-tr49&r=env |
| By: | Harold Houba; Hans Kremers |
| Abstract: | Integrated assessment models lack a microeconomic foundation in modelling environmental damages to the economy. To overcome this, damage coefficients are incorporated in standard microeconomic models. Firms and consumers take both damages and prices as given. Demand, supply, profit and expenditure functions under damage coefficients are derived that allow easy implementation in applied economic models through appropriate price distortions related to such coefficients. For the consumer, Slutsky's equations are derived. The different speeds of equilibrium adjustment in economic and climate models is reconciled in the Recursive Equilibrium with Environmental Damages (REED). An exchange economy and Robinson Crusoe economy illustrate our approach. |
| Keywords: | environmental damage, substitution effects, income effects, Slutsky's equations, equilibrium |
| JEL: | Q41 Q51 Q52 D11 D12 D51 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp878&r=env |
| By: | John C. Whitehead; Ben Poulter; Christopher F. Dumas; Okmyung Bin |
| Abstract: | We develop estimates of the economic effects of climate change-induced sea level rise on recreation at seventeen southern North Carolina beaches. We estimate the relationship between recreation behavior and beach width and simulate the effects of sea level rise on recreation site choice and trip frequency. We find that reductions in beach width due to increased erosion from sea-level rise negatively affect the number and value of beach recreation trips. For beach goers who only take day trips, we estimate that four percent of recreation value is lost in 2030 and 11 percent is lost in 2080. For those who take both day and overnight trips, 16 percent and 34 percent of recreation value is lost in 2030 and 2080, respectively. The present value of the lost recreation value through 2080 assuming no increase in population or income is $9 billion, $4 billion and $722 million with 0 percent, 2 percent and 7 percent discount rates. With expected increases in population and income the present value of the lost recreation value is $29 billion, $11 billion and $2 billion with 0 percent, 2 percent and 7 percent discount rates. Key Words: coastal recreation, travel cost method, climate change, sea level rise |
| JEL: | Q51 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:apl:wpaper:09-11&r=env |
| By: | Phoupet Kyophilapong (Faculty of Economics and Business Management, National University of Laos) |
| Abstract: | Wetlands are among the most important habitats for wildlife in the world. However, across Southeast Asia many wetland areas are under threat from water extraction and a range of other development pressures. This study finds that conserving wetlands can provide significant economic benefits. |
| Keywords: | wetland, conservation, Lao PDR |
| JEL: | Q51 Q56 Q57 |
| Date: | 2009–03 |
| URL: | http://d.repec.org/n?u=RePEc:eep:pbrief:pb2009031&r=env |
| By: | Asrat, Sinafikeh (International Food Policy Research Institute (IFPRI), Addis Ababa, Ethiopia); Yesuf, Mahmud (Environment for Development Centers in Ethiopia and Kenya); Carlsson, Fredrik (Department of Economics, School of Business, Economics and Law, Göteborg University); Wale, Edilegnaw (Bioversity International, Nairobi, Kenya) |
| Abstract: | Although in-situ conservation is increasingly considered an efficient way of conserving plant genetic resources, little is known about the incentives and constraints that govern conservation decisions among small farm holders in developing countries. Using a choice experiment approach, we investigate Ethiopian farmers’ crop variety preferences, estimate the mean willingness to pay for each crop variety attribute, and identify household specific and institutional factors that govern the preferences. We find that environmental adaptability and yield stability are important attributes for farmers’ choice of crop varieties. Farmers are willing to forgo some income or output in order to obtain a more stable and environmentally adaptable crop variety. Among other things, household resource endowments (particularly land holdings and livestock assets), years of farming experience, and contact with extension services are the major factors causing household heterogeneity of crop variety preferences. Based on our experimental results, we derive important policy implications for on-farm conservation, breeding priority setting, and improved variety adoption in Ethiopia.<p> |
| Keywords: | biodiversity; choice experiment; crop variety; random parameter logit |
| JEL: | Q18 Q51 Q57 |
| Date: | 2009–04–20 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0357&r=env |
| By: | Richard Yao (University of Waikato); Pamela Kaval (University of Waikato) |
| Abstract: | Biodiversity loss is a global problem, especially in reference to private lands. In response, we investigated whether private land biodiversity may be attained by developing incentives which include funding landholders through the provision of native trees to enhance biodiversity on their own properties. Using choice modelling, we tested this hypothesis. A typical respondent was found to be better off, in terms of welfare, if there was a biodiversity enhancing scheme in their locality. We also found that respondents in the upper northern regions of New Zealand were relatively more receptive in supporting biodiversity enhancement programmes on their properties, compared to those residing in the southern regions of the country. |
| Keywords: | native biodiversity; New Zealand; choice modelling; community volunteers |
| JEL: | Q57 Q2 Q25 |
| Date: | 2009–03–31 |
| URL: | http://d.repec.org/n?u=RePEc:wai:econwp:09/04&r=env |
| By: | Dasgupta, Susmita; Laplante, Benoit; Murray, Siobhan; Wheeler, David |
| Abstract: | An increase in sea surface temperature is evident at all latitudes and in all oceans. The current understanding is that ocean warming plays a major role in intensified cyclone activity and heightened storm surges. The vulnerability of coastlines to intensified storm surges can be ascertained by overlaying Geographic Information System information with data on land, population density, agriculture, urban extent, major cities, wetlands, and gross domestic product for inundation zones likely to experience more intense storms and a 1 meter sea-level rise. The results show severe impacts are likely to be limited to a relatively small number of countries and a cluster of large cities at the low end of the international income distribution. |
| Keywords: | Wetlands,Hazard Risk Management,Climate Change,Water Resources Assessment,Population Policies |
| Date: | 2009–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4901&r=env |
| By: | Keisaku Higashida; Shunsuke Managi |
| Abstract: | This paper examines the trade volume of recyclable wastes. In particular, we analyze the trade from developed countries to developing countries. The reason is that, when a recycling process is separated from the production process of final goods or/and the consumption process, it would be located in the labor-abundant (i.e., less developed developing) countries. Then, the environmental and health problems might become serious in developing countries. The relationship between the wages and the volume of imports is our focus. We demonstrate that, the higher the wage/per capita income of a developing country, the more recyclable wastes it imports. This implies that there is no evidence for a pollution haven in the sense that the dirty recycling sectors expand in the less developed developing countries more rapidly than the more developed developing countries. Furthermore, we discuss the possibility that the trade restriction for reducing environmental damage is accompanied by a significant loss in efficiency. |
| Keywords: | trade and recycling, recyclable wastes, gravity model |
| JEL: | F18 Q28 |
| Date: | 2009–04 |
| URL: | http://d.repec.org/n?u=RePEc:hst:ghsdps:gd09-060&r=env |
| By: | Dasgupta, Susmita; Meisner, Craig; Wheeler, David |
| Abstract: | Obsolete pesticides have accumulated in almost every developing country or economy in transition over the past several decades. Public health and environmental authorities are eager to reduce health threats by removing and decontaminating stockpile sites, but there are many sites, cleanup can be costly, and public resources are scarce. Under these conditions, it seems sensible to develop a methodology for prioritizing sites and treating them sequentially, as budgetary resources permit. This paper presents a methodology that develops cleanup priority indices for Tunisia. The approach integrates information on populations at risk, their proximity to stockpiles, and the relative toxic hazards of the stockpiles. The robustness of this approach is tested by varying model parameters widely and testing for stability in the rank-ordering of results. |
| Keywords: | Information Security&Privacy,Food&Beverage Industry,Population Policies,Environmental Governance,Disease Control&Prevention |
| Date: | 2009–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4893&r=env |
| By: | Bailey, Alastair; Bertaglia, Marco; Fraser, Iain; Sharma, Abhijit; Douarin, Elodie |
| Abstract: | BACKGROUND. Farmers are faced with a wide range of pest management (PM) options which can be adopted in isolation or alongside complement or substitute strategies. This paper presents the results of a survey of UK cereal producers focusing on the character and diversity of PM strategies currently used by, or available to, farmers. In addition, the survey asked various questions pertaining to agricultural policy participation, attitude toward environmental issues, sources of PM advice and information and the important characteristics of PM technologies. RESULTS. The results indicate that many farmers do make use of a suite of PM techniques and that their choice of integrated PM (IPM) portfolio appears to be jointly dictated by farm characteristics and Government policy. Results also indicate that portfolio choice does affect the number of subsequent insecticide applications per crop. CONCLUSIONS. These results help to identify the type of IPM portfolios considered adoptable by farmers and highlight the importance of substitution in IPM portfolios. As such, these results will help to direct R&D effort toward the realisation of more sustainable PM approaches and aid the identification of potential portfolio adopters. These findings highlight the opportunity a revised agri-environmental policy design could generate in terms of by enhancing coherent IPM portfolio adoption. |
| Keywords: | Pest management; pesticide alternatives; technology and portfolio approaches; |
| JEL: | Q16 Q55 O14 |
| Date: | 2009–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:14764&r=env |
| By: | Higashida, Keisaku; Managi, Shunsuke |
| Abstract: | This paper examines the trade volume of recyclable wastes. In particular, we analyze the trade from developed countries to developing countries. The reason is that, when a recycling process is separated from the production process of final goods or/and the consumption process, it would be located in the labor-abundant (i.e., less developed developing) countries. Then, the environmental and health problems might become serious in developing countries. The relationship between the wages and the volume of imports is our focus. We demonstrate that, the higher the wage/per capita income of a developing country, the more recyclable wastes it imports. This implies that there is no evidence for a pollution haven in the sense that the dirty recycling sectors expand in the less developed developing countries more rapidly than the more developed developing countries. Furthermore, we discuss the possibility that the trade restriction for reducing environmental damage is accompanied by a significant loss in efficiency. |
| Keywords: | trade and recycling, recyclable wastes, gravity model |
| JEL: | F18 Q28 |
| Date: | 2009–04 |
| URL: | http://d.repec.org/n?u=RePEc:hit:ccesdp:15&r=env |
| By: | Phoupet Kyophilapong (Faculty of Economics and Business Management, National University of Laos) |
| Abstract: | This study assesses the impact of irrigation on That Luang Marsh (TLM) in Vientiane, the capital city of the People’s Democratic Republic (PDR) of Laos. The study finds that the economic benefits provided by the marsh (particularly in terms of the fish it supplies to local people) far outweigh the benefits provided by the extraction of water for irrigation. As extraction of water for irrigation is threatening the ecology of the marsh and its ability to maintain a viable stock of fish, it is clear that the amount of water extracted for irrigation should be reduced. The report recommends that a minimum level for the water in TLM should be set to ensure the conservation of its precious wetland ecosystem. The report finds that, on balance, this would have a positive impact on the livelihoods of local people. This means that the conservation of the marsh makes good economic sense. To help the farmers who would be negatively affected by these measures, the report shows how they could be trained to use irrigation water more effectively, grow alternative crops that require less water than rice, catch fish and collect vegetables. |
| Keywords: | wetland, conservation, Lao PDR |
| JEL: | Q50 Q51 Q56 Q57 |
| Date: | 2009–03 |
| URL: | http://d.repec.org/n?u=RePEc:eep:report:rr2009031&r=env |