nep-env New Economics Papers
on Environmental Economics
Issue of 2009‒09‒11
fifteen papers chosen by
Francisco S.Ramos
Federal University of Pernambuco

  1. Moral Concerns on Tradable Pollution Permits in International Environmental Agreements By Eyckmans, Johan; Kverndokk, Snorre
  2. Developing Country Second-Mover Advantage in Competition Over Standards and Taxes By Valeska Groenert; Myrna Wooders; Ben Zissimos
  3. Price Volatility and Risk Exposure: on the Interaction of Quota and Product Markets By Baldursson, Fridrik M.; von der Fehr, Nils-Henrik M.
  4. Conservation and Ecotourism in Brazil and Mexico: The Development Impact By David Ivan Fleischer
  5. Changing business perceptions regarding biodiversity: from impact mitigation towards new strategies and practices By Joël Houdet; Michel Trommetter; Jacques Weber
  6. WCD Thematic Review V.2:Contributing Paper: Environmental and Social Impact Assessment for Large Dams -Thematic Review from the Point of View of Developing Countries By Iara Verocai
  7. Eliciting environmental preferences of Ghanaians in the laboratory: An incentive-compatible experiment By Meroz, Yael; Morone, Andrea; Morone, Piergiuseppe
  8. Inciting Protocols – How International Environmental Agreements Trigger Knowledge Transfers By Thijs Dekker; Herman R.J. Vollebergh; Frans P. de Vries; Cees A. Withagen
  9. Impact of Air Pollution on Human Health in Dehra Doon City By A. Gautam
  10. Transboundary Pollution and Absorptive Capacity By Ben Youssef, Slim
  11. Sustainable Management and Total Quality Management in Public Organizations with Outsourcing By Gazzola Patrizia; Pellicelli Michela
  12. Solar PV rural electrification and energy-poverty: A review and conceptual framework with reference to Ghana By Obeng, George Yaw; Evers, Hans-Dieter
  13. Why Economists Reject Long-Term Fisheries Management Plans?. By José-María Da Rocha; María-José Gutiérrez
  14. Comment mobiliser les communes dans les Plans Climat Territoriaux ? By Gilles Debizet
  15. Vers une rupture profonde du modèle énergétique mondial By Patrick Criqui

  1. By: Eyckmans, Johan (Hogeschool-Universiteit Brussel); Kverndokk, Snorre (Ragnar Frisch Centre for Economic Research)
    Abstract: We investigate how moral concerns about permit trading affect an endogenous pollution permit trading equilibrium, where governments choose non-cooperatively the amount of permits they allocate to domestic industries. Politicians may feel reluctant to allow permit trading and/or may prefer that abatement is undertaken domestically due to moral concerns. This will have an effect on the initial permit allocations, and, therefore, on global emissions. The impact on global emissions depends on the precise formulation of the moral concerns, but under reasonable assumptions, we show that global emissions may increase. Thus, doing what is perceived as good does not always yield the desired outcome. However, this can be offset by restrictions on permit trading when governments have moral concerns about this trade.
    Keywords: Tradable emission permits; international environmental agreements; non-cooperative game theory; moral motivation; identity
    JEL: D63 Q54
    Date: 2009–06–25
  2. By: Valeska Groenert (Department of Economics, Vanderbilt University); Myrna Wooders (Department of Economics, Vanderbilt University); Ben Zissimos (Department of Economics, Vanderbilt University)
    Abstract: We show that, in competition between a developed country and a developing country over environmental standards and taxes, the developing country may have a 'second-mover advantage.' In our model, firms do not unanimously prefer lower environmental-standard levels. We introduce this feature to an otherwise familiar model of fiscal competition. Three distinct outcomes can be characterized by varying the cost to firms of 'standard mismatch': (1) the outcome may be efficient; (2) the developing country may be a 'pollution haven,' where some firms escape excessively high environmental standards in the developed country; (3) environmental standards may be set excessively high.
    Keywords: Environmental standards, fiscal competition, second-mover advantage, tax competition
    JEL: H2 H3 Q2
    Date: 2009–07
  3. By: Baldursson, Fridrik M. (Reykjavik University); von der Fehr, Nils-Henrik M. (Dept. of Economics, University of Oslo)
    Abstract: We consider an industry with firms that produce a final good emitting pollution to different degree as a side effect. Pollution is regulated by a tradable quota system where some quotas may have been allocated at the outset, i.e. before the quota market is opened. We study how volatility in quota price affects firm behaviour, taking into account the impact of quota price on final-good price. The impact on the individual firm differs depending on how polluting it is - whether it is ‘clean’ or ‘dirty’- and whether it has been allocated quotas at the outset. In the absence of long-term or forward contracting, the optimal initial quota allocation turns out to resemble a grandfathering regime: clean firms are allocated no quotas - dirty firms are allocated quotas for a part of their emissions.With forward contracts and in the absence of wealth effects initial quota allocation has no effect on firm behaviour.
    Keywords: regulation; effluent taxes; tradable quotas; uncertainty; risk aversion; environmental management
    JEL: D81 H23 L51 Q28 Q38
    Date: 2009–04–22
  4. By: David Ivan Fleischer (International Policy Centre for Inclusive Growth)
    Abstract: Conservation projects alter local productive modes and have an impact on livelihoods. For example, sea turtle conservation projects affect fishing communities through hunting restrictions. It is not painless for communities to improve fishing technology in order to prevent the accidental capture of sea turtles. The inability to adapt to environmental requirements forces fishermen to abandon traditional livelihoods. A combination of environmental conservation and ecotourism development can provide the solution. (...)
    Keywords: Conservation and Ecotourism in Brazil and Mexico: The Development Impact
    Date: 2009–09
  5. By: Joël Houdet (Orée - (-)); Michel Trommetter (INRA - UMR GAEL INRA - UPMF, Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X); Jacques Weber (CIRAD - Unité de recherche Ressources forestières et politiques publiques)
    Abstract: Business activities play a major role in biodiversity loss and, as a result, firms are under increasing pressures from stakeholders to reduce their negative impacts on living systems. In response, business attitudes, behaviors and strategies regarding biodiversity are progressively changing, suggesting that interactions between business and biodiversity could go beyond the search of a compromise between development and conservation. This paper proposes an analysis of business perceptions regarding biodiversity. In its first part, we discuss how biodiversity is usually perceived as an external environmental constraint on business activities, and how economic tools may be used for arbitrages in that context. Building upon our work on the Business and Biodiversity Interdependence Indicator (BBII), we then discuss how assessing a firm's interdependences with biodiversity may bring about new business strategies and practices. We propose a typology of firm behavior regarding biodiversity and ecosystem services (BES), discuss business opportunities and property rights issues pertaining to markets for ecosystem services and propose preliminary conceptual foundations of new business standards needed to reverse current biodiversity trends.
    Keywords: biodiversity; business; strategy; payments for ecosystem services; impact mitigation; standards.
    Date: 2009–09–02
  6. By: Iara Verocai
    Abstract: It presents an overview of the theme based on the author’s experience on EIA in developing countries. In many of these countries, a holistic approach has been adopted to EIA requiring the consideration of both biophysical and socioeconomic impacts. This is expressed in regulations concerning the basic EIA contents. Thus, social variables are implicit in the following items, wherever environment is mentioned.
    Keywords: EIA, developing countries, biophysical, socioeconomic, environment, social variables, dams
    Date: 2009
  7. By: Meroz, Yael; Morone, Andrea; Morone, Piergiuseppe
    Abstract: In this paper we aim to look into the attributes of Ghanaians’ willingness-to-pay for green products. This would help us to assess whether Ghanaians show a preference towards environmental goods. The methodology employed to address these issues is an ‘experimentally-adapted’ CV survey which involves laboratory experiment conducted among Ghanaian University students. Notwithstanding the limitations arising from the sample used in our experiment (most notably University students do not represent, economically wise, the entire Ghanaian population), we believe that our investigation provides a first answer to such question as Ghanaians consistently show that they are willing to pay an extra premium for green products.
    Keywords: contingent valuation; experiment; incentive-compatible; Ghana; organic products; willingness to pay.
    JEL: O10 Q56 C91
    Date: 2009–09–04
  8. By: Thijs Dekker (Institute for Environmental Studies, VU University Amsterdam); Herman R.J. Vollebergh (Netherlands Assessment Agency, Bilthoven); Frans P. de Vries (Stichting Management School, Division of Economics, University of Stirling); Cees A. Withagen (Dept. of Spatial Economics, VU University Amsterdam, Dept. of Economics, and CentER, Tilburg University)
    Abstract: This paper studies how sulfur protocols trigger invention and diffusion of technologies for reducing SO2 emissions. For this goal we constructed a patent data set on SO2 abatement technologies filed in 15 signatory and non- signatory countries in the period 1970-1997. Our data enable us to study intended knowledge diffusion by separating so called mother patents, or original inventions, from family patents, which represent the same invention but are patents filed in foreign countries. We find that innovating firms file both types of patent applications before the protocols are actually implemented. Moreover, the filing of patents abroad (‘families’) is particularly strong in the countries that cooperate through the international protocols, i.e., the signatory countries. Our results suggest that firms are aware of the potential private benefits of such international agreements. They exploit potential advantages of larger product markets by seeking protection in countries that participate in the protocols.
    Keywords: International environmental agreements; Inventions; Knowledge transfers; Patents; Acid rain
    JEL: D7 D8 Q5
    Date: 2009–08–18
  9. By: A. Gautam
    Abstract: To study the adverse health effects of exposure to ambient air pollution in different areas of Dehra Doon. To examine the relationship between the levels of air pollution and the percentage of affected people in selected area of Dehra Doon city. Air quality monitoring and a questionnaire-based health survey in four areas of Dehra Doon were conducted during January and February 2003. The selected areas included two commercial areas, Lakhi Bagh and Clock Tower, both with highly congested vehicular traffic. For comparison two residential areas, Vasant Vihar and Kedarpuram were also studied. Kedarpuram is a less urbanised but a medium density area compared to Vasant Vihar.
    Keywords: health eefects, air pollution, pollution, Dehra Doon, questionnaire, residential areas, India, health, health survey, vehicular traffic,
    Date: 2009
  10. By: Ben Youssef, Slim
    Abstract: The impact of the investment in absorptive capacity on transboundary pollution is studied by considering two countries each of them regulating a firm. Firms can invest in original research and in absorptive research to lower their pollution intensity. The absorptive research enables a firm to capture part of the original research made by the other one. We show that by means of adequate emission taxes, original and absorptive R&D subsidies, non-cooperating regulators can reach the social optimum. Interestingly, we show that the investment in absorptive research enables non-cooperating regulators to better internalize transboundary pollution. The higher is the ability parameter of absorption, the greater is the proportion of transboundary pollution internalized. Therefore, it is recommended for the international community to make the patent laws more flexible and enabling learning from the research made by others more interesting.
    Keywords: Transboundary Pollution; Original Research; Absorptive Research; Internalization; Social Optimum.
    JEL: D62 O32 H23 C72
    Date: 2009–09–05
  11. By: Gazzola Patrizia (Department of Economics, University of Insubria, Italy); Pellicelli Michela (Faculty of Economics, University of Pavia, Italy)
    Abstract: The aim of this paper is to explore how Total Quality Management (TQM) can act as a foundation and key catalyst for developing Sustainable Management and Corporate Social Responsibility (CSR) within Public Organizations. In the public sector we have too often experienced low quality services, which have generated and perpetuated low expectations. The result has been great dissatisfaction and frustration, but not much action (Gaster, 1995). As any other organization, the Public Organization can apply TQM and thereby accomplish some improvements.CSR is an emerging topic within organizational research and praxis. It has parallels to sustainable development, environmental protection, social equity and economic growth.This paper shows specifically how to incorporate sustainability into a quality system by using a model that shows the relation between investment in quality and the variables fame and reputation. The interest in the nature of the relationship between TQM and CSR is long-standing. The aim of the quality movement is to enable organizations to deliver high quality services in the shortest possible time to market, at minimum cost, and in a manner that emphasises human dignity, work satisfaction, and mutual and long-term loyalty between the organization and its stakeholders. As such, TQM has a strong ethical dimension, advocating the importance of considering the interests of stakeholders (Oppenheim & Przasnyski, 1999). In this paper outsourcing in Public Organizations is considered as an instrument for raising the qualitative level of services and thus for developing CSR. First, the definitions of CSR are discussed. Second, the ethics in quality are described, followed by a discussion on existing quality models with regard to CSR. Third, the relationship between TQM and CSR is considered. We have analyzed the strong similarity between TQM and CSR, and outsourcing analysis is used to illustrate the combined CSR/TQM approach in Public Organizations. Finally, we have highlighted the main factors of resistance to externalization in Public Administrations and how these can be overcome by developing a risk management approach.
    Date: 2009–03
  12. By: Obeng, George Yaw; Evers, Hans-Dieter
    Abstract: In spite of the intention of governments to increase the use of renewable energy in electricity supply, particularly the use of solar photovoltaic (PV) for energy poverty reduction in rural and peri-urban areas of Africa, there is relatively little information on how solar PV electrification impacts on energy poverty reduction. Therefore, there is a gap in the literature and hence the need for continuous research. Using Ghana as a reference country, the historical trend, donor cooperation and other aspects of solar PV rural electrification are discussed . The paper illustrates the intersectoral linkages of solar PV electrification and indicators on education, health, information acquisition, agriculture and micro-enterprises. It also reviews sustainability related issues including costs and market barriers, subsidies, stakeholders involvement, political and policy implications, which are critical factors for sustainable market development of solar PV and other renewables. Finally, a common framework is developed to provide a basic understanding of how solar PV electrification impacts on energy-poverty. This framework provides a structure of the interrelated concepts and principles relevant to the issues under review.
    Keywords: Rural electrification; solar PV electrification; energy-poverty; renewable energy; economic development; Ghana; Africa.
    JEL: N57 O55 N37 O13 Q42 N7 P28 Q43
    Date: 2009–02–02
  13. By: José-María Da Rocha (Research Group in Economic Analysis, Universidade de Vigo); María-José Gutiérrez (FAEII and MacLab, University of the Basque Country)
    Abstract: Most fisheries agencies conduct biological and economic assessments independently. This independent conduct may lead to situations in which economists reject management plans proposed by biologists. The objective of this study is to show how to find optimal strategies that may satisfy biologists and economists' conditions. In particular we characterize optimal fishing trajectories that maximize the present value of a discounted economic indicator taking into account the age-structure of the population as in stock assessment methodologies. This approach is applied to the Northern Stock of Hake. Our main empirical findings are: i) Optimal policy may be far away from any of the classical scenarios proposed by biologists, ii) The more the future is discounted, the higher the likelihood of finding contradictions among scenarios proposed by biologists and conclusions from economic analysis, iii) Optimal management reduces the risk of the stock falling under precautionary levels, especially if the future is not discounted to much, and iv) Optimal stationary fishing rate may be very different depending on the economic indicator used as reference.
    Keywords: Fisheries management, age-structured models, discounting, Fmsy, Fmax, Northern Stock
    JEL: Q22
    Date: 2009–09–03
  14. By: Gilles Debizet (PACTE - Politiques publiques, ACtion politique, TErritoires - CNRS : UMR5194 - Université Pierre Mendès-France - Grenoble II - Institut d'Études Politiques de Grenoble - Université Joseph Fourier - Grenoble I)
    Abstract: Atelier rassemblant les chefs de projet et chargés de mission Plan Climat (PCT) des collectivités locales de la Région Rhône-Alpes. 1- Dans la phase de généralisation des PCT, l'adaptation résulte d'abord d'une logique ascendante (bottom up) des acteurs de terrain contrairement à l'atténuation (mitigation) qui relève d'un logique descendante (top-down). ==> Les politiques d'adaptation vont être très diversifiées selon les territoires, les branches d'activités et les thématiques sectorielles. Elles sont difficiles à appréhender et à définir. La gouvernance d'un PCT pourrait différer selon le volet atténuation ou adaptation. 2- Les émetteurs de GES sont en grande majorité des particuliers, des entreprises ou des organismes sur lesquels la collectivité porteuse (une intercommunalité ou un parc régional ...) du PCT n'a pas d'autorité. ==> Le PCT doit s'appuyer sur des acteurs/vecteurs intermédiaires : prescripteurs, régulateurs et diffuseurs de connaissances. 3- L'action publique locale prend nécessairement des formes différentes selon la sphère d'influence ; on distingue la maîtrise d'ouvrage en propre, l'influence directe (via subvention, autorisation administrative ...) et l'influence indirecte (via communication, formation ...). ==> Selon ses compétences institutionnelles et les secteurs d'activités, la collectivité porteuse du PCT dispose d'une gamme de leviers tels que la réglementation, l'incitation économique, le porter à connaissance et la pression sociétale (par des tiers).
    Keywords: "atténuation GES" ; adaptation ; Energie Climat ; Territorial ; PECT ; PCT
    Date: 2009–06–02
  15. By: Patrick Criqui (LEPII - Laboratoire d'Économie de la Production et de l'Intégration Internationale - CNRS : UMR5252 - Université Pierre Mendès-France - Grenoble II)
    Abstract: Le paradigme énergétique mis en œuvre avec la révolution industrielle au début du XIXème siècle aura duré deux siècles. Il n'est aujourd'hui plus soutenable en raison d'une contrainte amont sur les ressources d'hydrocarbures et d'une contrainte aval sur la capacité de l'atmosphère à stocker les gaz à effet de serre. Un nouveau paradigme énergétique permettant de surmonter cette double contrainte doit être déployé dès la première moitié du XXIème siècle. Il imposera une bien plus grande sobriété et efficacité énergétique, la mise en œuvre massive des sources sans carbone et des changements profonds dans les infrastructures urbaines et de transport comme dans les comportements des consommateurs.
    Date: 2009–07

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