|
on Environmental Economics |
| By: | Anupriya Singhal |
| Abstract: | The Department of Environment is engaged in overall environmental assessment, monitoring, protection and raising awareness among the people of Delhi. The Delhi Pollution Control Committee (DPCC) is responsible for environmental monitoring and implementation of various pollution control acts and rules, which will be discussed in this paper.[Working Paper No. 0077] |
| Keywords: | Department, Environment,environmental assessment,protection, raising awareness, Delhi Pollution Control Committee,environmental monitoring, implementation |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2634&r=env |
| By: | Anbumozhi, Venkatachalam (Asian Development Bank Institute); Bauer, Armin (Asian Development Bank Institute) |
| Abstract: | <p>The global financial crisis and the resulting economic slowdown may be assumed to have at least the benefit of also reducing environmental degradation in the individual countries. This paper discusses the consequences of the crisis for energy use, pollution prevention, and land use in Asia and the associated emissions of greenhouse gases-the principal global warming pollutants-as well as their linkage with poverty. <p>There are some short-term benefits to the global environment from the economic slowdown. Such benefits include reduction in the rate of air and water pollution from reduced energy use-which has direct implications for the urban poor's health. <p>However, modest benefits to global and local environments arising from the economic slowdown are likely to be much smaller than the costs associated with many environmental conservation measures, related to energy savings, natural resources protection, and water environment. <p>Both supply and demand side investments in energy and environment are being affected. Many ongoing projects are being slowed and a number of downward revisions are being made in expected profitability. Meanwhile, businesses and households are spending less on energy efficiency measures. Tighter credit and lower prices make investment in energy savings and environmental conservation less attractive financially, while the economic crisis is encouraging end users to rein in spending across the board. This is delaying the deployment of more efficient technology and equipment. Furthermore, solution providers are expected to reduce investment in research, development, and commercialization of more energy-efficient models, unless they are able to secure financial support from governments. <p>The economic slowdown is likely to alter land use patterns by increasing the pressure to clear forests for firewood, timber, or agricultural purposes-the livelihood opportunities available with the rural poor. <p>Further, the likely additional delay in many countries in the construction of effluent treatment plans for limiting the discharge of pollutants into the rivers is expected to harm the water environment. Thus on balance, the modest benefits to global and local environments arising from the economic slowdown are likely to be much smaller than the costs of many environmental conservation measures for improving the livelihood conditions of the poor. <p>Natural resources and ecosystem services provided by the environment are essential to support economic growth and better livelihood conditions of the poor. Inaction on key environmental challenges, such as climate change, could lead to severe economic consequences in the future. <p>These concerns justify government action to support investment in green growth measures, promoting direct investment or fiscal incentives for energy efficiency and clean environment low-carbon technologies. <p>But much more needs to be done. The investment needed to put national economies in low-carbon green growth pathways far exceeds what is expected to occur. Governments should be looking to increase the new funds they commit to long-term energy and environmental policies to improve livelihood conditions and to shift our development trend into an environmentally sustainable future. Hence a commitment that extends well beyond the economic stimulus packages is needed. |
| Keywords: | poverty reduction; greenhouse gas emissions; global financial crisis |
| JEL: | Q27 Q42 Q48 Q54 Q57 |
| Date: | 2010–07–08 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:0227&r=env |
| By: | Caporale, Guglielmo Maria (Brunel University); Rault, Christophe (University of Orléans); Sova, Robert (CREST & University of Paris 1 Panthéon-Sorbonne); Sova, Ana Maria (CREST & University of Paris 1 Panthéon-Sorbonne) |
| Abstract: | According to the pollution haven hypotheses differences in environmental regulation affect trade flows and plant location. Specifically, environmental stringency should decrease exports and increase imports of "dirty" goods. This paper estimates a gravity model to establish whether the implementation of more stringent regulations in Romania has indeed affected its competitiveness and decreased exports towards its European trading partners. Our findings do not provide empirical support to the pollution haven hypothesis, i.e. environmental stringency is not found to affect significantly total trade, or its components (pollution intensive trade and pollution intensive trade related to non-resource-based trade). |
| Keywords: | environmental stringency, competiveness, gravity model |
| JEL: | F14 Q28 |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5029&r=env |
| By: | Blandford, David; Gaasland, Ivar; VÃ¥rdal, Erling |
| Abstract: | As a result of substantial government support, Norway is more or less self-sufficient in its main agricultural products. This contributes to both trade distortions and higher greenhouse gas (GHG) emissions. In multinational negotiations separate efforts are being made to liberalize trade (through the World Trade Organization) and to reduce global GHG emissions (through the United Nations). Using a model of Norwegian agriculture, we explore interconnections between trade liberalization and GHG emission reductions. We show that the Doha proposals would involve no major cut in either agricultural production or GHG emissions due to weakness in the disciplines on trade distorting support. We contrast further trade liberalization and the use of a carbon tax to achieve emission reductions. Trade liberalization involves relatively large impacts on agricultural activity. Trade distortions decrease, and, economic welfare increases substantially due to lower production. For a high cost country like Norway, this indicates that the GHG abatement cost is negative in the sector if no value is attributed to agricultural activity beyond the world market price of food. A more targeted policy to reduce GHG emissions is to use a carbon tax. Compared to the trade liberalization case, both production and land use can be kept at a higher level with only a modest decrease in economic welfare. The side-effect is, however, higher trade distortions |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2010–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc10:91729&r=env |
| By: | Everett, Tim; Ishwaran, Mallika; Ansaloni, Gian Paolo; Rubin, Alex |
| Abstract: | As the UK economy emerges from the downturn, attention is shifting to how best to return it to sustained and durable economic growth. But what does sustained and durable economic growth mean in the context of the natural environment? The UK and the global economy face significant environmental challenges, from averting dangerous climate change to halting biodiversity loss and protecting our ecosystems. There has been debate over whether it is possible to achieve economic growth whilst also tackling these challenges. This paper does not try to answer the question of what the sustainable level of economic growth might be, but instead examines the link between economic growth and the environment, and the role of environmental policy in managing the provision and use of natural assets. Many question the value of continued growth in GDP, given its limitations – including as a measure of wellbeing – and some evidence of its diminishing benefits within rich countries. However, it remains essential to support continued improvements in factors that affect people’s wellbeing, from health and employment to education and quality of life, and to help the government deliver on a range of policy objectives – economic, social, and environmental. |
| Keywords: | Environmental policy: Natural Environment: Natural Capital: Growth: Sustainable Growth: |
| JEL: | E62 Q56 Q58 |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:23585&r=env |
| By: | Coria, Jessica (Department of Economics, School of Business, Economics and Law, Göteborg University); Villegas-Palacio, Clara (Facultad de Minas. Universidad Nacional de Colombia &) |
| Abstract: | In practice, targeted monitoring seems to be a strategy frequently used by regulators. In this paper, we study the effects of targeted monitoring strategies on the adoption of a new abatement technology and, consequently, on the aggregate emissions level when firms are regulated with uniform taxes. The results suggest that a regulator aiming to stimulate technology adoption should decrease the adopters’ monitoring probability and/or increase the non-adopters’ monitoring probability. In contrast to previous literature, we find that, in some cases, a regulator whose objective is to minimize aggregate emissions should exert a stronger monitoring pressure on firms with higher abatement costs.<p> |
| Keywords: | technology adoption; environmental policy; imperfect compliance; targeted enforcement |
| JEL: | K31 K42 L51 Q55 |
| Date: | 2010–07–07 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0455&r=env |
| By: | Zhu, Tingju; Ringler, Claudia |
| Abstract: | This paper analyzes the effects of climate change on hydrology and water resources in the Limpopo River Basin of Southern Africa, using a semidistributed hydrological model and the Water Simulation Module of the International Model for Policy Analysis of Agricultural Commodities and Trade (IMPACT). The analysis focuses on the effects of climate change on hydrology and irrigation in parts of the four riparian countries within the basin: Botswana, Mozambique, South Africa, and Zimbabwe. Results show that water resources of the Limpopo River Basin are already stressed under todays climate conditions. Projected water management and infrastructure changes are expected to improve the situation by 2030 if current climate conditions continue into the future. However, under the four climate change scenarios studied here, water supply situations are expected to worsen considerably by 2030. Assessing hydrological impacts of climate change is crucial given that expansion of irrigated areas has been postulated as a key adaptation strategy for Sub-Saharan Africa. Such expansion will need to take into account future changes in water availability in African river basins. |
| Keywords: | Climate change, hydrology, Irrigation, Limpopo River Basin, Water resources, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:961&r=env |
| By: | Roy Chowdhury, Prabal |
| Abstract: | We examine pollution-reducing R&D by a monopoly firm producing a dirty product. In a dynamic framework with hyperbolic discounting, we establish conditions under which the Porter hypothesis goes through, i.e. environmental regulation increases R&D, thus reducing pollution, as well as increasing firm profits. This is likely to hold whenever R&D costs are at an intermediate level, and the planning horizon of the firms is large. |
| Keywords: | Porter hypothesis; abatement tax; R&D; hyperbolic discounting; |
| JEL: | Q50 D78 D42 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:23647&r=env |
| By: | M. Menegatti; D. Baiardi |
| Abstract: | The paper examines the effects of environmental uncertainty on Pigouvian tax and abatement policy used, either separately or contemporaneously, to counteract pollution. We discuss uncertainty in three aspects: environmental quality, pollution effect and the impact of abatement. For each case we determine the conditions ensuring that uncertainty increases the size of public intervention and provide an economic interpretation and some parallelisms with other risk problems. The last part of the paper generalizes some of our results to the case of N-th order risk changes. |
| Keywords: | Pigouvian tax, Abatement policies, Environment, Uncertainty, Bivariate utility |
| JEL: | H23 D81 Q5 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:par:dipeco:2010-ep04&r=env |
| By: | Sintori, A.; Tsiboukas, K. |
| Abstract: | Agricultural activity has been identified as a considerable source of Greenhouse Gas (GHG) emissions. Emissions from ruminant livestock farms are produced particularly due to CH4 emissions from enteric fermentation. Dairy sheep farming is the most important livestock production activity in Greece, characterized by a high degree of farm diversification. This paper addresses the issue of the evaluation of GHG emissions of Greek dairy sheep farms, through the use of a whole farm mathematical programming model that uses farm level data and optimizes total gross margin. Mathematical programming models are an appropriate tool, when addressing complex issues, such as GHG emissions. The analysis is undertaken on different farm types, instead of a representative farm, to account for the heterogeneity of the sheep farming activity. Thus, marginal abatement cost and appropriate mitigation strategies for diversified farms are determined. The results indicate that intensive farms cause few emissions per produced milk (2.7kg of CO2 eq). Also, the marginal abatement cost ranges among 51-64â¬/t for all types of sheep farms (at 20% abatement level). The model used in this analysis and the results it yields are useful to researchers and policy makers, who aim to design efficient mitigation measures. |
| Keywords: | Dairy sheep farming, linear programming, GHG emissions, abatement cost, Environmental Economics and Policy, |
| Date: | 2010–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc10:91812&r=env |
| By: | Murphy, Geraldine; Hynes, Stephen; Murphy, Eithne; OâDonoghue, Cathal |
| Abstract: | This paper modelled the participation decision of Irish farmers in an agri-environmental scheme. It also uses the sub sample of farmers in the National Farm Survey actively participating in the scheme in 2007 to model the various biodiversity options undertaken as a function of farmer demographic characteristics, farm characteristic and habitat variables. The results of the analysis demonstrate that younger, married farmers with larger farms are more likely to participate in REPS and that the voluntary aspect of REPS can mean that not all habitat types are equally likely to be covered by the scheme. Farmers with internationally important habitats on their farm, like intact peatlands or semi-natural grasslands are more likely to participate in REPS. However, there is evidence to suggest that these farmers are choosing to participate in REPS because they view their land as having low economic value rather than having high ecological value. Farmers with water or wetland and forest are less likely to participate in REPS, which indicates that some important ecosystems may not be included in the scheme. The 1 biodiversity options undertaken by the farmers are found to facilitate the management of the system of farming on the holing rather than the type of habitats on the land. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2010–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc10:91829&r=env |
| By: | Quillérou, Emmanuelle; Fraser, Rob, Prof.; Fraser, Iain, Dr |
| Abstract: | The Environmental Stewardship Scheme provides payments to farmers for the provision of environmental services based on foregone agricultural income. This creates a potential incentive compatibility problem which, combined with an information asymmetry on farm land heterogeneity, could lead to adverse selection of farmers into the Scheme and therefore reduced cost-effectiveness of the Scheme. This reduced cost-effectiveness would be represented by a systematic overpayment of farmers for the land enrolled into the Scheme, compared to the opportunity cost of production. This paper examines the potential adverse selection problem affecting the higher tier of the Environmental Stewardship, the Higher Level Stewardship, using a principal agent framework combined with farm-level data on participation in the HLS. Empirically, it is found that, at the farm level, HLS participation is negatively related to cereal yields, suggesting the existence of adverse selection in the HLS and farmer overcompensation from entering the scheme. |
| Keywords: | Adverse selection, agri-environment, Environmental Stewardship, principal-agent, contract, Environmental Economics and Policy, D78, D82, H44, Q18, Q58, |
| Date: | 2010–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc10:91676&r=env |
| By: | Apata, T.G; Ogunyinka, A.I; Sanusi, R.A; Ogunwande, S |
| Abstract: | This paper presents an empirical analysis of the effects of global warming on Nigerian agriculture and estimation of the determinants of adaptation to climate change. Data used for this study are from both secondary and primary sources. The set of secondary sources of data helped to examine the coverage of the three scenarios (1971-1980; 1981-1990 and 1991-2000). The primary data set consists of 1500 respondentsâ but only 1250 cases were useful. This study analyzed determinants of farm-level climate adaptation measures using a Multinomial choice and stochastic-simulation model to investigate the effects of rapid climatic change on grain production and the human population in Nigeria. The model calculates the production, consumption and storage of grains under different climate scenarios over a 10-year scenery. In most scenarios, either an optimistic baseline annual increase of agricultural output of 1.85% or a more pessimistic appraisal of 0.75% was used. The rate of natural increase of the human population exclusive of excess hunger-related deaths was set at 1.65% per year. Results indicated that hunger-related deaths could double if grain productions do not keep pace with population growth in an unfavourable climatic environment. However, Climate change adaptations have significant impact on farm productivity. |
| Keywords: | Climate change, Adaptation, Economic consequences, Farm level productivity, Average Rainfall, Nigeria, Food Security and Poverty, D6, D91, E21, O13, Q01, Q2, |
| Date: | 2010–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc10:91751&r=env |
| By: | Iino, Fukuya (Asian Development Bank Institute); Lim, Alva (Asian Development Bank Institute) |
| Abstract: | Right now, governments around the world are spending record amounts of money to kick-start their economies in response to the financial crisis. Fortunately, a great opportunity exists for this fiscal stimulus to be directed towards "green" economic growth, which can not only provide the new markets and jobs needed immediately for alleviating poverty, but also address the challenges of global warming. Working models already exist, proving that sustainable growth is possible. To achieve this will require social, technical and structural changes, as well as appropriate policies conducive to eco-innovation. For developing countries, there are lessons that can be learned from countries that have already gone through that process. The aim of this paper is to show what lessons can be learnt from the Japanese case. As the world's second largest economy, Japan is not only one of the most energy-efficient economies in the world; it also produces some of the world's leading green technologies. This paper focuses on current trends in the green product market and consumer behavior in Japan, which have been influenced by recent government policies, particularly the ¥15.4 trillion (more than US$100 billion) stimulus package. The aim of this paper is to provide some insight on, and present a repository of selected government policies promoting sustainable development. The scope of this paper will cover areas such as hybrid vehicles, renewable energy, energy efficient home appliances, and green certification schemes. It also provides a brief discussion on the environmental policies of the new Japanese government that came into power on 16 September 2009. The paper attempts to use the most recent data, from June to August 2009, however given the quickly-evolving global environment, these statistics may change drastically by the time this paper is presented. |
| Keywords: | japanese government environmental policies; sustainable development; vehicle pollution policies |
| JEL: | Q53 Q54 Q58 |
| Date: | 2010–07–08 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:0228&r=env |
| By: | Shreekant Gupta |
| Abstract: | As a consequence of the flexibility mechanisms incorporated in the Kyoto Protocol (KP), incentive-based policies such as emissions trading and the clean development mechanism (CDM) are being widely discussed in the context of greenhouse gas (GHG) abatement. Whether developing countries such as India will ratify the Protocol or not and whether they will eventually take part in a global emissions trading system is something that will only become clear as time passes. It is clear, however, that in either case these countries will be affected by any global architecture for GHG abatement that emerges.[Working Paper No. 85] |
| Keywords: | Kyoto Protocol, greenhouse gas, development mechanism, global architecture, environment, emissions |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2638&r=env |
| By: | Douglas Gollin (Williams College); Christian Zimmermann (University of Connecticut) |
| Abstract: | We study the impact of global climate change on the prevalence of tropical diseases using a heterogeneous agent dynamic general equilibrium model. In our framework, households can take actions (e.g., purchasing bed nets or other goods) that provide partial protection from disease. However, these actions are costly and households face borrowing constraints. Parameterizing the model, we explore the impact of a worldwide temperature increase of 3C. We find that the impact on disease prevalence and especially output should be modest and can be mitigated by improvements in protection efficacy. |
| Keywords: | DSGE model, climate change, tropical disease, incomplete markets |
| JEL: | I1 O11 E13 E21 Q54 |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:uct:uconnp:2010-12&r=env |
| By: | Campbell, Danny; Lorimer, Victoria; Aravena, Claudia; Hutchinson, George |
| Abstract: | Data from a discrete choice experiment is used to investigate the implications of failing to account for attribute processing strategies (APSs). The research was designed to elicit the economic benefits associated with landscape restoration activities that were intended to remediate environmental damage caused by illegal dumping activities. In this paper we accommodate APSs using an equality constrained latent class model. By retrieving the conditional class membership probabilities we recover estimates of the weights that each respondent assigned to each attribute, which we subsequently use ensure unnecessary weight is not allocated to attributes not attended to by respondents. Results from the analysis provide strong evidence that significant gains in models fit as well as more defensible and reliable willingness to pay estimates can be achieved using when the APSs are accounted for. |
| Keywords: | Attribute processing strategies, environmental restoration, equality constrained latent class model, multinomial logit model, willingness to pay, Environmental Economics and Policy, |
| Date: | 2010–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc10:91718&r=env |
| By: | Olivier Beaumais (CARE - Centre d'analyse et de recherche en économie - Université de Rouen : EA2260); Anne Briand (CARE - Centre d'analyse et de recherche en économie - Université de Rouen : EA2260); Katrin Millock (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I); Céline Nauges (LERNA-INRA - Toulouse School of Economics) |
| Abstract: | Using a unique cross-section sample from 10 OECD countries, we estimate willingness to pay for better quality of tap water. On the pooled sample, households are only willing to pay 7.5% of the median annual water bill to improve the quality of tap water. The highest relative willingness to pay for better tap water quality was found in the countries with the highest percentage of respondents being unsatisfied with tap water quality because of health concerns. The median willingness to pay in Mexico, Korea and Italy was estimated at 10.1%, 6.4% and 8.8% of the median water bill. The marginal willingness to pay increased with income, education, environmental concern, trust in information from government, and specific concerns with water quality. |
| Keywords: | Contingent valuation, tobit model, water quality, willingness to pay. |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-00497453_v1&r=env |
| By: | Harrison, George R; Jones, James V H |
| Abstract: | The paper builds on the results of previous studies investigating whether farmers profit by participation in the Entry Level Scheme (ELS). Standard payment levels (derived from points) under ELS are fixed at rates that are expected only to compensate farmers for income foregone and costs incurred. There is no profit element as such. There is therefore no reason to expect participation to be profitable. However farm level examination of the income foregone and costs incurred in previous studies based in other parts of England have shown that this can be achieved. The study is based in the Lincolnshire Wolds, an area dominated by arable farming but with topography and associated natural features that offer some variety in the mix of farming and the measures that can qualify for environmental prescriptions under the scheme. The study concluded that farmers were able to profit by ELS participation but that the extent of this varied according to the type of environmental features on the farm and whether arable land was taken out of production. These conclusions have potential implications for scheme design, farmer uptake and additionality in the use of public funds to acquire environmental benefits. |
| Keywords: | Entry Level Scheme, agri-environmental payments, income forgone, partial budgets, profitability., Farm Management, Q58, |
| Date: | 2010–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc10:91674&r=env |
| By: | Sauer, Johannes; Wossink, Ada |
| Abstract: | We provide a new approach for assessing the cost of marginal ecosystem changes and the effectiveness of green payment schemes. The approach is based on a theoretical and empirical analysis of the bio-economic production interactions between marketed outputs and non-marketed ecosystem services at the micro level. To frame the economic nature of the problem, we employ a generalized joint production model in combination with cost minimization. The generalized joint production framework allows for the consideration of complementary, substitutive and competitive relationships between agricultural production and non-marketed ecosystem services generation and avoids double counting. From this theoretical model we distinguish three theoretical cases depending on the imposed minimum acceptable level of the non-marketed ecosystem services. We employ farm level panel data for the UK to empirically investigate these cases. More specifically, to represent and evaluate the production structure, we estimate first- and second-order elasticities derived from a flexible transformation function. Results show that the majority of farms produce agricultural output and ecosystem services in a complementary relationship. Generation of multiple ecosystem services on the same farm showed either a substitutive or competitive relationship. Changing the composition of the ecosystem services output would have very different implications for individual farms. |
| Keywords: | ecosystem services, green payments, bio-economic modelling, economies of scale and scope, program evaluation., Environmental Economics and Policy, Q18, Q57, Q58., |
| Date: | 2010–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc10:91807&r=env |
| By: | Sauer, Johannes; Walsh, John |
| Abstract: | The overall aim of this study is to empirically investigate the cost structure of a management agreement type agri-environmental instrument and to identify factors for cost variation over space and time. We control for the actual level of compliance by using compliance weighted average scheme cost ratios. Beside technological and economic performance measures, we also incorporate risk proxies. In addition, we consider unobserved heterogeneity or path dependency with respect to unknown administrative, spatial and farm specific factors. Hence, we try to disentangle random and fixed scheme cost effects by applying a bootstrapped mixed-effects regression approach using the empirical case of the Environmental Stewardship Scheme in the UK. Regional and sectoral variation in the scheme uptake and the cost of compliance for the participating farms lead to significant cost effects reflecting heterogeneity with respect to management skills and attitudes, production focus, location, technologies, economic performance and risk. |
| Keywords: | Ecosystem Services, Scheme Cost, Risk, Mixed-Effects Regression, Agricultural and Food Policy, Q18, Q57, Q58, |
| Date: | 2010–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc10:91731&r=env |
| By: | MARTIN, Elsa; STAHN, Hubert |
| Abstract: | The point of departure of this work is the situation occurring in the Crau area (South-East of France). In this region, organic farmers use surface water for irrigation and excess water percolates into an aquifer that is used as a source for local residents. In contrast to the standard framework, agricultural production thus increases groundwater levels. In this paper, using a dynamic model, we derive the myopic and socially optimal food and water consumption paths. The first aim is to bring to the fore that an intervention is needed and that, in such a specific case, the environment can be protected thanks to some "good" production incentives. We then analyze the problem of coordination that can occur when two distinct local authorities - an agricultural and a water one, optimize food production and water use. In order to do so, we use an open-loop Nash game. We furthermore add into the picture environmental externalities linked with irrigation water flows that can generate amenities when they replenish wetlands or negative externalities when they induce floods. |
| Keywords: | externalities, agricultural policy, water policy, coordination of policies, Environmental Economics and Policy, H23, Q18, Q28., |
| Date: | 2010–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc10:91811&r=env |
| By: | Carl Gaigné; Stéphane Riou; François Thisse |
| Abstract: | .There is a large consensus among international institutions and national governments to favor urban-containment policies –the compact city– as a way to improve the ecological performance of the urban system. This approach overlooks a fundamental fact: what matters for the ecological outcome of cities is the mix between the level of population density and the global pattern of activities. As expected, when both the intercity and intra-urban distributions of activities are given, a higher population density makes cities more environmentally friendly. However, once we account for the fact that cities may be either monocentric or polycentric as well as for the possible relocation of activities between cities, the relationship between population density and the ecological performance of cities appears to be much more involved. Indeed, because changes in population density affect land rents and wages, firms and workers are incited to relocate, thus leading to new commuting and shipping patterns. We show that policies favoring the decentralization of jobs in big cities may be more desirable because they both reduce pollution and improve welfare. |
| Keywords: | greenhouse gas, commuting costs, transport costs, cities; urban-containment policy |
| JEL: | D61 F12 Q54 Q58 R12 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:rae:wpaper:201005&r=env |
| By: | Bruce Mizrach (Rutgers University); Yoichi Otsubo (Rutgers University) |
| Abstract: | This paper analyzes the market microstructure of the European Climate Exchange, the largest EU ETS trading venue. The ECX captures 2/3 of the screen traded market in EUA and more than 90% in CER. Trading volumes are active, with EUA volume doubling in 2009. Spreads range from €0.02 to €0.06 for EUA futures and from €0.07 to €0.18 for CER. Market impact estimates imply that an average trade will move the EUA market by €0.0108 and the CER market €0.0429. Both Granger-Gonzalo and Hasbrouck information shares imply that approximately 90% of price discovery is taking place in the ECX futures market. We find imbalances in the order book help predict returns for up to three days. A simple trading strategy that enters the market long or short when the order imbalance is strong is profitable even after accounting for spreads and market impact. |
| Keywords: | carbon trading, market microstructure, bid-ask spread, market impact, information shares |
| JEL: | G13 G32 E44 |
| Date: | 2010–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:rut:rutres:201005&r=env |
| By: | Campbell, Danny; Doherty, Edel; Hynes, Stephen; van Rensburg, Tom |
| Abstract: | Data from a discrete choice experiment aimed at eliciting the demand for recreational walking trails on farmland in the Republic of Ireland is used to explore the consequences of misspecifying the cost coeffcient. To enable straightforward calculation of WTP from the distributions of the non-price coeffcients, the price coeffcient is typically held constant in mixed logit models. This implies that all respondents are equally price sensitive. In this paper we test the validity of this assumption. Our approach is based on a comparison and combination of discrete and continuous mixing approaches (i.e., a mixture of distributions) to uncover the unobserved heterogeneity in price sensitivities. Results from the analysis highlight that model fit and willingness to pay are sensitive to the distributional assumptions used to represent the price coeffcient. |
| Keywords: | Discrete choice experiments, discrete mixtures, continuous mixtures, mixtures of distributions, price sensitivities, farmland recreation, willing to pay space, Environmental Economics and Policy, |
| Date: | 2010–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc10:91723&r=env |
| By: | Shibashis Mukherjee (Department of Agricultural and Consumer Economics, University of Illinois at Urbana Champaign); Arthur J. Caplan (Department of Applied Economics, Utah State University) |
| Abstract: | We use GIS and econometric methods to estimate the marginal implicit values of environmental amenities associated with residential land parcels in the mountain town of Logan, Utah. Amenities include proximity to open spaces (such as parks, golf courses and lakes), commercial zones, major roads, streams, and general visibility of surrounding topography in the valley as determined by the elevation of the land parcel. The amenity value estimates are corrected for spatial autocorrelation. We find a positive relationship between a parcel’s value and its elevation, and a negative relationship between value and adjacency to a stagnant stream. To our knowledge, this is the first hedonic study to assess the effect of stream stagnancy on land value. |
| Keywords: | hedonic valuation; stagnant streams; high elevation |
| JEL: | Q51 Q59 |
| Date: | 2010–06–07 |
| URL: | http://d.repec.org/n?u=RePEc:usu:wpaper:2010-01&r=env |
| By: | Dyer, George A.; Taylor, J. Edward |
| Abstract: | Assessing the human and environmental impacts of biofuels requires unraveling the connection between international trade, on one hand, and local land-use and social change, on the other, while accounting for cross-scalar linkages between and within social and environmental systems. We propose a disaggregated approach to model how macro shocks shape rural householdsâ decisions, and how these decisions integrate onto aggregate supply and landuse patterns. The approach, built on an agent-based model of rural Mexico, is used to explore the impacts of ethanol-driven US corn price increases. Our estimate of a 5.7% expansion in corn area by 2008 and wide variation across regions corresponds fairly well with ex post reports. Estimates from alternative models exceed ours by up to 200%. Corn land expanded between 1.6% in the southeast and 16% in the northwest. A 3% increase in agricultural value added nevertheless did not promote rural development, whether measured in terms of total rural value added or income. Direct and indirect (multiplier) effects on rural incomes were limited. Rural households experienced a 0.02% increase in real income, while absentee (non-rural) landholdersâ income increased 3.9%. Our approach highlights the crucial role of local market conditions and interactions among microeconomic actors in shaping biofuelsâ impacts via local feedback mechanisms. It suggests that subsistence activities might keep deforestation pressures in check in some developing areas while precluding the rural population from benefiting. A disaggregated approach should help integrate future research on land-use change and economics. |
| Keywords: | Crop Production/Industries, |
| Date: | 2010–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc10:91804&r=env |
| By: | Marek Giergiczny (Warsaw Ecological Economics Center, University of Warsaw); Sviataslau Valasiuk (Warsaw Ecological Economics Center, University of Warsaw); Tomasz Żylicz (Warsaw Ecological Economics Center, University of Warsaw) |
| Abstract: | We look at perspectives of nature protection in a wetland of international importance in South-Western part of Belarus. The region is economically depressed, which may prove to be a factor in local conservation initiatives. A theoretical model is developed to identify conditions for the local population to get involved in the fen mire conservation projects. The model is then verified by means of a choice experiment administered in villages neighbouring the site. The main outcome of the valuation experiments is to demonstrate that a carefully designed conservation programme is likely to enjoy the support of the local population who appreciates economic opportunities provided by saving the wetland. |
| Keywords: | wetlands, biodiversity protection, local development, ecological tourism, choice experiment (CE), random utility model (RUM) |
| JEL: | Q50 Q51 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:war:wpaper:2010-09&r=env |
| By: | Buckley, Cathal, Dr |
| Abstract: | Within the constraints of the EU Nitrates and Water Framework Directives, controlling and managing nutrient transfers to water from excessive nutrient use on agricultural land is a significant environmental policy challenge. This paper assesses whether there is room to reduce nitrogen and phosphorus applications by exploring the extent of their over application by land managers using data envelopment analysis methodology. This paper concentrates on specialist dairy and tillage farms stratified by land use potential as these agricultural systems are the most intensive and may pose the greatest risk in terms of managing nutrient transfer from agricultural land to water courses. Results demonstrate considerable inefficiency in the utilisation of nitrogen and phosphorus fertilisers across these systems. Average over application on dairy farms compared to efficient benchmark farms ranged from 25.9 to 33.3 kg Nitrogen ha-1 and 3.0 to 3.04 kg Phosphorus ha-1. Results for specialist tillage farms indicate over application of 21.2 kg N ha-1 and 3.3 kg P ha-1in 2008. Average, potential cost savings on chemical fertilisers across all systems on average ranged from â¬36 ha-1 to â¬50 ha-1. Additionally, potential cost savings on imported feeds of â¬68 to â¬113 per livestock units were indicated on dairy farms. Such reductions have the potential to deliver a double dividend by reducing the risk of nutrient leaching and diffuse pollution from agricultural land while improving economic margins at farm level. |
| Keywords: | Agribusiness, |
| Date: | 2010–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc10:91752&r=env |
| By: | Bokushevar, Raushan; Kumbhakar, Subal C; Lehmann, Bernard |
| Abstract: | This paper analyzes the evolution of Swiss farm productivity during the implementation of environmental policy reforms. We employ a production model formulation with technology parameters defined as the functions of subsidies, as well as individual farm characteristics. Our estimates for two groups of farms â milk-producing and crop farms â show that introducing environmental regulations induced serious changes in the production technology and productivity of inputs, especially of land, labor and fertilizer. The overall effect of the subsidies on the production output has been found negative. At the same time, we find that farms do not use their resources optimally, which indicates some deficiencies in structural adjustments, primarily in the land and labor markets. |
| Keywords: | environmental regulations, productivity analysis, Swiss agriculture., Environmental Economics and Policy, Q120, D240, |
| Date: | 2010–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc10:91828&r=env |
| By: | Yadav, Lava; Van Rensburg, Tom; Kelley, Hugh |
| Abstract: | Stated preference techniques have been used to place values on public goods by directly asking individuals to provide their personal values and opinions. This method has consistently resulted in the emergence of hypothetical bias. Several insights from the psychology literature suggest that social desirability bias, a contributor to hypothetical bias, occurs when individuals face such direct questions. However, replacing the direct questions with an indirect one that asks for their predictions about otherâs values can potentially eliminate this bias. In this study we employ both questioning formats in a choice experiment to make comparisons between the stated responses. Predicted willingness to pay is 2.5 and 3.1 times smaller than hypothetical values indicating predictions to be a more accurate measure of actual values. The study further highlights the vulnerability of the conventional approach to a social desirability bias as it allows normative motives to distort respondentsâ decisions, which in turn generates preferences for environmental attributes that are misleading. |
| Keywords: | Stated Preference Techniques, Discrete Choice Experiments, Hypothetical Bias, Social Desirability Bias, Lake Wabegon Effect, False Consensus Effect, Willingness to Pay, Environmental Economics and Policy, |
| Date: | 2010–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc10:91728&r=env |
| By: | Saunders, Caroline M.; Kaye-Blake, William; Campbell, Rachel |
| Abstract: | This paper takes the capital based approach to sustainability and applies this to examine the sustainability of different farming methods. The capital based approach argues that for future generations to be as well off as the present than the capital base should at least be maintained. The paper explores some of the issues around this approach such as the definition of capitals, their measurement and weakness in the approach which do not account for the resilience of system and/ or the substitutability of capitals. The paper outlines how this could be applied to agriculture and show sustainability across different farming methods. The data used is from the ARGOS (Agricultural Research Group on Sustainability) project which has collected data on social, economic and environmental factors from kiwifruit orchards green, green organic and gold, for five years. The results show little significant differences across orchard types. This may be due to the homogeneity of kiwifruit orchards and it is intended to expand this to the sheep sector to examine this further. |
| Keywords: | Agricultural and Food Policy, |
| Date: | 2010–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc10:91720&r=env |
| By: | Pauw, Karl; Thurlow, James; van Seventer, Dirk |
| Abstract: | Malawi suffers frequent droughts and floods. In an economy that is heavily dependent on the agricultural sector, it is crucial to understand the implications of these extreme climate events. Not only are rural livelihoods affected due to the severe impacts on the agricultural sector, but nonfarm and urban households are also vulnerable given the strong production and price linkages between agriculture and the rest of the economy. This study uses a general equilibrium model to estimate the economywide impacts of drought- and flood-related crop production losses. Climate simulations are based on production loss estimates from stochastic drought and flood models. Model results show that the economic losses due to extreme climate events are significant: Malawi loses 1.7 percent of its gross domestic product on average every year due to the combined effects of droughts and floods. This is equivalent to almost US$22 million in 2005 prices. Given their crop choices, it is smaller-scale farmers and those in the flood-prone southern regions of the country who are worst affected. However, urban and nonfarm households are not spared. Food shortages lead to sharp price increases that reduce urban households disposable incomes. This study makes an important contribution by estimating the economywide impacts of extreme climate events. However, this is only the first step toward designing appropriate agricultural and development strategies that explicitly account for climate uncertainty. |
| Keywords: | agricultural sector, CGE Modeling, Droughts, floods, Gross Domestic Product (GDP), households, Livelihoods, Poverty, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:962&r=env |
| By: | Sudhir A. Shah |
| Abstract: | Through this paper an attempt has been made to propose a conceptual and institutional framework for the first step of Kyoto procedure. This framework is formally expressed in a non-cooperative model of emission capping, i.e., the creation of emission of endowment rights. As the results apply to every solution of this model, they also apply to the solution that is optimal in terms of some normative criterion.[ Working Paper No. 88] |
| Keywords: | Kyoto Protocol, conceptual, institutional, emission, United Nations, mechanisims |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2637&r=env |
| By: | TAKARADA Yasuhiro |
| Abstract: | We examine trade and strategic interaction between countries that enforce technical measures for fisheries management (e.g., restrictions on fishing gears, vessels, areas and time) when countries share access to a common resource stock. Although technical measures are important as basic management tools, compliance with such measures makes it more costly for the fishermen to catch a certain quantity of fish. We show that under bilateral management, the resource exporting country gains from trade, whereas trade causes the steady state utility to fall in the resource importing country because the resource exporting country implements non-cooperative resource management when demand for a harvest is not so high. Under sufficiently high demand for a harvest, maximum sustainable yield can be attained after trade by what we call cooperative management; a situation in which both countries are better off. Under low demand for a harvest, trade benefits the resource importing country but may harm the resource exporting country regardless of whether it implements strict resource management or not. |
| Date: | 2010–07 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:10035&r=env |
| By: | Arnaud Dragicevic |
| Date: | 2010–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirpro:2010rp-08&r=env |