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on Environmental Economics |
| By: | ZhongXiang Zhang (East-West Center); ; |
| Abstract: | China, from its own perspective can not afford to, and from an international perspective, is not allowed to continue on the conventional path of encouraging economic growth at the expense of the environment. The country needs to transform its economy to effectively address concern about a range of environmental problems from burning fossil fuels and steeply rising oil import and international pressure to exhibit greater ambition in fighting global climate change. This paper first discusses China’s own efforts towards energy saving and pollutants cutting, the widespread use of renewable energy and participation in clean development mechanism, and puts carbon reductions of China’s unilateral actions into perspective. Given that that transition to a low carbon economy cannot take place overnight, the paper then discusses China’s policies on promoting the use of low-carbon energy technologies and nuclear power and efforts to secure stable oil and gas supplies during this transition period. Based on these discussions, the paper provides some recommendations on issues related to energy conservation and pollution control, wind power, nuclear power, clean coal technologies, and overseas oil and gas supplies, and articulates a roadmap for China regarding its climate commitments to 2050. |
| JEL: | Q42 Q48 Q52 Q54 Q58 |
| Date: | 2010–02 |
| URL: | http://d.repec.org/n?u=RePEc:ewc:wpaper:wp109&r=env |
| By: | Bettina Kretschmer; Michael Hübler; Peter Nunnenkamp |
| Abstract: | Advanced OECD countries are widely held responsible to contain global carbon emissions by providing financial and technical support to developing economies, where emissions are increasing most rapidly. It is open to question, however, whether more generous official development assistance would help fight climate change effectively. Empirical evidence on the effects of foreign aid on energy and emission intensities in recipient countries hardly exists. We contribute to closing this gap by considering energy use and carbon emissions as dependent climate-related variables, and the volume and structure of aid as possible determinants. In particular, we assess the impact of aid that donors classify to be specifically related to energy issues. In addition to OLS estimations, we perform dynamic panel GMM and LSDVC (corrected least squared dummy variables) estimations. We find that aid tends to be effective in reducing the energy intensity of GDP in recipient countries. All the same, the carbon intensity of energy use is hardly affected. Scaling up aid efforts would thus be insufficient to fight climate change beyond improving energy efficiency |
| Keywords: | Energy intensity, CO2 emissions, foreign aid, developing countries |
| JEL: | F35 Q41 Q55 |
| Date: | 2010–02 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1598&r=env |
| By: | Fell, Harrison (Resources for the Future); Burtraw, Dallas (Resources for the Future); Morgenstern, Richard (Resources for the Future); Palmer, Karen (Resources for the Future) |
| Abstract: | Current and proposed greenhouse gas cap-and-trade systems allow regulated entities to offset abatement requirements by paying unregulated entities to abate. These offsets from unregulated entities are believed to contain system costs and stabilize allowance prices. However, the supply of offsets is highly uncertain. Furthermore, the offset supply uncertainty may be correlated with other sources of uncertainty in emissions trading systems. This paper presents a model that incorporates both uncertainties in the supply of offsets and in abatement costs. Using numerical methods we solve the model under a variety of parameter settings, including a system that includes allowance price controls. We find that as uncertainty in offsets and uncertainty in abatement costs become more negatively correlated, expected abatement plus offset purchase costs increase, as does the variability in allowance prices and emissions from the regulated sector. Imposing an allowance price collar that limits the upper and lower cost substantially mitigates cost increases as well as the variability in prices and emissions, while roughly maintaining expected environmental outcomes. |
| Keywords: | climate change, offsets, cap-and-trade, price collars, stochastic dynamic programming |
| JEL: | Q54 Q58 C61 |
| Date: | 2010–01–12 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-10-01&r=env |
| By: | Sippel, Maike; Michaelowa, Axel |
| Abstract: | An increasing proportion of greenhouse gas emissions is produced in urban areas in industrializing and developing countries. Recent research shows that per capita emissions in cities like Bangkok, Cape Town or Shanghai have already reached the level of cities like London, New York or Toronto. Large parts of the building stock and service infrastructure in cities in rapidly developing countries is built in the coming decade or two. Decisions taken in this sector today may therefore lock in a high emissions path. Based upon a survey of projects under the Clean Development Mechanism (CDM) of the Kyoto Protocol, we find that only about 1% of CDM projects have been submitted by municipalities, mostly in the waste management sector. This low participation is probably due to a lack of technical know how to develop CDM projects and an absence of motivation due to the long project cycle and the limited “visibility” of the projects for the electorate. Projects in the buildings and transport sector are rare, mainly due to heavy methodological challenges. A case study of the city network ICLEI and its experience with cities’ participation in the CDM adds insights from the practitioner side. We conclude that CDM reforms may make it easier for municipalities to engage in the CDM, and that new forms of cooperation between municipalities and project developers, potentially facilitated by ICLEI, are required to help to realize the urban CDM potential. |
| Keywords: | CDM; cities; energy; climate policy; mitigation; transport; waste; local authorities |
| JEL: | Q5 H7 Q42 O13 Q4 |
| Date: | 2009–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:20986&r=env |
| By: | Sippel, Maike; Jenssen, Till |
| Abstract: | A large proportion of greenhouse gas emissions is produced in urban areas, particularly in high income countries. Cities are also vulnerable to the impacts of climate change, and particularly so in developing countries. Therefore, local climate policies for mitigation and adaptation have to play an important role in any effective global climate protection strategy. Based upon a systematic literature review, this article gives a comprehensive overview of motivation and challenges for local climate governance. A large part of the literature focuses on mitigation and cities in industrialized countries. The review also includes the smaller and emerging body of literature on adaptation and cities in developing or industrializing countries. Motivations and challenges we find fall into broad categories like ‘economic’, ‘informational’, ‘institutional’, ‘liveability’ or ‘political/cultural’. We conclude that the mix of motivation and challenges is city-specific, and that the national framework conditions are important. It matters, whether cities engage in mitigation or adaptation policies, whether they are located in developing, industrializing or industrialized countries, and at which stage of climate policy-making cities are. For many cities, cost savings are a primary motivation for local mitigation policies, while perceived vulnerability and a commitment to development is the primary motivator for adaptation policies. The collective action problem of climate protection (also known as ‘Tragedy of the Commons’) and inappropriate legal frameworks are key barriers to mitigation policies. Challenges for adaptation include financial constraints, and a lack of expertise, cooperation, leadership and political support. Understanding their specific motivation and challenges may support cities in developing appropriate local climate action plans. Furthermore, the understanding of motivation and challenges can inform other policy levels that want to help realize the local climate protection potential. |
| Keywords: | Climate policy; local authorities; cities; mitigation; adaptation; energy; local climate governance |
| JEL: | Q5 H7 Q42 O13 Q4 |
| Date: | 2009–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:20987&r=env |
| By: | Jota Ishikawa; Toshihiro Okubo |
| Abstract: | One channel through which environment is damaged is consumption. To protect environment, various product standards are introduced all over the world. By using a new economic geography framework, this paperexplores the effects of environmental product standards on environment in a North-South trade model. We examine a situation in which North unilaterally introduces an environmental product standard. Specifically, those products that do not meet the standard are not allowed to be sold in the North market. We find that such a standard may worsen North environment but improve South environment through firm relocation. |
| Keywords: | enviromental product standards, compliance costs, firm location, footloose capital model |
| JEL: | F18 Q54 |
| Date: | 2010–02 |
| URL: | http://d.repec.org/n?u=RePEc:hst:ghsdps:gd09-116&r=env |
| By: | ISHIKAWA Jota; OKUBO Toshihiro |
| Abstract: | One channel through which the environment can be damaged is consumption. To protect the environment, various product standards are introduced throughout the world. By using a new economic geography framework, this paper explores the effects of environmental product standards on the environment in a North-South trade model. We examine a situation in which the North unilaterally introduces an environmental product standard. Specifically, those products that do not meet the standard are prohibited from being sold in the North market. We find that such a standard may worsen the environment in the North but improve the environment in the South through firm relocation. |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:10011&r=env |
| By: | Sedjo, Roger A. (Resources for the Future) |
| Abstract: | This paper is based on a World Bank–sponsored effort to develop a global estimate of adaptation costs, considering the implications of global climate change for industrial forestry. It focuses on the anticipated impacts of climate change on forests broadly, on industrial wood production in particular, and on Brazil, South Africa, and China. The aim is to identify likely damages and possible mitigating investments or activities. The study draws from the existing literature and the results of earlier investigations reporting the latest comprehensive projections in the literature. The results provide perspective as well as estimates and projections of the impacts of climate change on forests and forestry in various regions and countries. Because climate change will increase forest productivity in some areas while decreasing it elsewhere the impacts vary for positive to negative by region. In general, production increases will shift from low-latitude regions in the short term to high latitude regions in the long term. Planted forests will offer a major vehicle for adaptation. |
| Keywords: | forests, climate change, adaptation, productivity, plantations, industrial wood, climate models |
| JEL: | Q20 Q23 Q55 |
| Date: | 2010–01–26 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-10-06&r=env |
| By: | Gregmar I. Galinato; Aaron Olanie; Shinsuke Uchida; Jonathan K. Yoder (School of Economic Sciences, Washington State University) |
| Abstract: | Under the Clean Development Mechanism (CDM) of the Kyoto Protocol, forest projects can receive returns for carbon sequestration via two credit instruments: temporary (tCERs) or long-term certified emission reductions (lCERs). This article develops a theoretical model of optimal harvesting strategies that compares private optimal harvest decision under these two instruments. We find that risk neutral landowners are likely to prefer instituting lCERs over tCERs to maximize surplus. A particular type of early harvest penalty implemented under the lCERs is critical in determining the length of rotation intervals and the carbon credit supply. When this penalty is an increasing function of the difference in biomass before and after harvesting across verification periods, the landowner may choose longer or shorter rotation intervals compared to the Faustmann rotation. The resulting supply curve may have a backward bending region over a range of carbon prices. |
| Keywords: | forest rotation, long term certified emission reductions (lCERs), carbon sequestration |
| JEL: | Q2 Q54 Q23 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:wsu:wpaper:galinato-2&r=env |
| By: | Suzette P. Galinato; Jonathan K. Yoder; David Granatstein (School of Economic Sciences, Washington State University) |
| Abstract: | This paper estimates the economic value of biochar application on agricultural cropland for carbon sequestration and its soil amendment properties. In particular, we consider the carbon emissions avoided when biochar is applied to agricultural soil, instead of agricultural lime, the amount of carbon sequestered, and the value of carbon offsets, assuming there is an established carbon trading mechanism for biochar soil application. We use winter wheat production in Eastern Whitman County, Washington as a case study, and consider different carbon offset price scenarios and different prices of biochar to estimate a farm profit. Our findings suggest that it may be profitable to apply biochar as a soil amendment under some conditions if the biochar market price is low enough and/or a carbon offset market exists. |
| Keywords: | Biochar, Carbon sequestration, Crop, Farm profitability, Soil amendment |
| JEL: | Q16 Q54 |
| Date: | 2010–02 |
| URL: | http://d.repec.org/n?u=RePEc:wsu:wpaper:sgalinato-2&r=env |
| By: | Reyno Seymore (Department of Economics, University of Pretoria); Margaret Mabugu (Department of Economics, University of Pretoria); Jan van Heerden (Department of Economics, University of Pretoria) |
| Abstract: | In the 2008 Budget Review, the South African government announced its intention to levy a 2c/kWh tax on the sale of electricity generated from non-renewable sources. This measure is intended to serve a dual purpose of helping to manage the current electricity supply shortages and to protect the environment (National Treasury 2008). An electricity generation tax is set to have an impact on the South African economy. However, several instruments have been proposed in the literature to protect the competitiveness and economy of a country when it imposes a green tax, one of these remedies being border tax adjustments.This paper evaluates the effectiveness for the South African case, of border tax adjustments (BTAs) in counteracting the negative impact of an electricity generation tax on competitiveness. The remedial effects of the BTAs are assessed in the light of their ability to maintain the environmental benefits of the electricity generation tax. Additionally, the the Global Trade Analysis Project (GTAP) model is used to evaluate the impact of an electricity generation tax on the South African, SACU and SADC economies and to explore the possibility of reducing the economic impact of the electricity generation tax through BTAs. The results show that an electricity generation tax will lead to a contraction in South African gross domestic product (GDP). Traditional BTAs are unable to address these negative impacts. We propose a reversedBTA approach where gains from trade are utilised to counteract the negative effects of an electricity generation tax, while retaining the environmental benefits associated with the electricity generation tax. This is achieved through a lowering of import tariffs, as this will reduce production costs and thereby restore the competitiveness of the South African economy. The reduction in import tariffs not only negates the negative GDP impact of the electricity generation tax, but the bulk of CO2 abatement from the electricity generation tax is retained. |
| Date: | 2010–02 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:201003&r=env |
| By: | Béatrice Roussillon; Paul Schweinzer |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:man:sespap:1004&r=env |
| By: | Tiberio Daddi (Sant’Anna School of Advanced Studies, Italy); F. Farro (Department for the Relations with the European Union, Municipality of Prato, Italy); S. Vaglio (Laboratory of Anthropology and Ethnology, University of Florence, Italy); Giacomo Bartoli (Sant’Anna School of Advanced Studies, Italy); Fabio Iraldo (Sant’Anna School of Advanced Studies, Pisa, Italy - Institute for Environmental and Energy Policy and Economics, Bocconi University, Milan.) |
| Abstract: | In the recent years the involvement of the third countries in achieving the environmental Policy objectives set up by the European Union are becoming more and more important. Several Programs of cooperation co-fund activities and actions to improve the state of the Environment of third Mediterranean partners in order to achieve a global improvement of the environment. This paper aims to present the results of the project PAMLED co-funded by the Med-Pact Programme of the EU. The project will complete its course at the end of April and it aims to develop and strengthen the capabilities of three Mediterranean cities (City of Marrakech - Morocco, Sin El Fil – Lebanon and Bodrum -Turkey) in managing and promoting their local sustainable development, as well as implementing innovative different action fields. The strengthening of the capabilities of these Mediterranean partners was mainly based on the ‘collective learning’, achieved by the constitution of a partnerships with five European partners (Municipalities of: Prato, Lucca, Brtonigla, Rio Marina and Skopje). Needs and priorities of each Mediterranean partner were identified and pilot actions were specifically elaborated in order to promote the sustainable development and the exploitation of local resources, with particular respect to environmental protection, the enhancement of local tangible and intangible assets, economic support and an overall sustainable development The paper will show the outputs of several pilot actions carried out in the three Mediterranean cities involved. The Municipality of Bodrum carried out innovative pilot actions in the field of urban waste management; Sin El Fil developed a pilot project titled “Youth development plan”, while the City of Marrakech carried out a pilot project aimed at sensitizing the local communities and the actors of the touristic sector (e.g. hotels, hammams) on the importance to reduce water consumption. |
| Date: | 2010–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:sse:wpaper:201001&r=env |
| By: | Wisdom Akpalu; Peter Martin |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:130&r=env |
| By: | Markandya, Anil (Asian Development Bank Institute); Setboonsarng, Sununtar (Asian Development Bank Institute); Hui, Qiao Yu (Asian Development Bank Institute); Songkranok, Rachanee (Asian Development Bank Institute); Stefan, Adam (Asian Development Bank Institute) |
| Abstract: | This paper provides estimates of the costs of organic agriculture (OA) programs, and sets them in the context of the costs of attaining the United Nations' Millennium Development Goals (MDGs). It analyzes the costs of OA programs in four case studies: Wanzai, PRC; Wuyuan, PRC; Kandy, Sri Lanka; and Ubon Ratchathani, Thailand. The results show considerable variation across the case studies, suggesting that there is no clear structure to the costs of adopting OA. Costs do depend on the efficiency with which the OA adoption programs are run. The lowest cost programs were more than ten times less expensive than the highest cost ones. A further analysis of the gains resulting from OA adoption reveals that the costs per person taken out of poverty was much lower than the World Bank's estimates, based on income growth in general or based on the detailed costs of meeting some of the more quantifiable MDGs (e.g., education, health, and environment). |
| Keywords: | organic agriculture un mdg; millennium development goals organic; organic agriculture asia mdg |
| JEL: | Q01 Q18 Q56 |
| Date: | 2010–02–09 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:0193&r=env |