|
on Environmental Economics |
| By: | Sophie Legras |
| Abstract: | This paper analyses the consequences of environmental myopia on pol- icy design in a multi-pollutants framework. Focusing on the correlations between aerosols and greenhouse gases, the paper compares abatement and stock targets setting for various cases of environmental myopia. Both cases of lax and stringent regulation, compared to what is socially opti- mum, may arise. Furthermore, the lax/stringent nature of the policies may evolve over time, so that the time horizon of policy design matters in assessing the impact of environmental myopia. |
| Keywords: | Atmospheric pollution, Global warming, Policy design, Incomplete environmental model, Multiple stocks |
| JEL: | Q53 Q54 Q58 |
| Date: | 2010–11–05 |
| URL: | http://d.repec.org/n?u=RePEc:ceo:wpaper:26&r=env |
| By: | Stern, David I.; Jotzo, Frank |
| Abstract: | As part of the negotiating process for a post-Kyoto climate policy regime, several developing economies have announced carbon emission targets for 2020. China and Indiaâs commitments are framed as emissions intensity reductions by 40 to 45 per cent and 20 to 25 per cent respectively between 2005 and 2020. But how feasible are these proposed emissions intensity reductions, and how do they compare with the targeted reductions in the United States and the European Union? In this research report we use a stochastic frontier model to explain the variation in countriesâ energy intensities. We use the model to produce emissions projections for China and India under a number of scenarios that consider various rates of technological change and changes in the share of non-fossil energy. We find that China is likely to need to adopt ambitious carbon mitigation policies in order to achieve its stated target, and that its targeted reductions in emissions intensity are on par with those implicit in the United States and European Union targets. Indiaâs target is less ambitious and might be met with only limited or even no dedicated mitigation policies. |
| Keywords: | carbon emissions, climate change, developing countries, projections, Environmental Economics and Policy, Resource /Energy Economics and Policy, O13, Q54, Q56, Q58, |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eerhrr:94947&r=env |
| By: | Stern, David I.; Lambie, N. Ross |
| Abstract: | The relative cost of carbon emissions reductions across regions depends on whether we measure cost by marginal or total cost, private or economy-wide cost, and using market or purchasing power parity exchange rates. If all countries are on the same marginal carbon abatement cost curve then lower marginal costs of abatement are associated with higher energy intensities and higher total costs of abatement in achieving proportional cuts in emissions, equal emissions per capita, or common global carbon price targets. We test this conjecture using the results of the GTEM computable general equilibrium model as presented in the climate change economics review conducted by the Australian Treasury Department. Rankings of countries by costs do differ depending on whether marginal or total cost is used. But some regions, including OPEC and the former USSR, have high marginal costs and high emissions intensities and, therefore, high total costs and others like the EU relatively low marginal and total costs. Under a global emissions trading regime real economy-wide costs of abatement are higher in developing economies with currencies valued below purchasing power parity and large differences between private and economy-wide costs such as India contributing to the high GDP losses experienced in those countries. |
| Keywords: | Climate change, costs, developing countries, computable general equilibrium, Environmental Economics and Policy, Q52, Q54, |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eerhrr:95058&r=env |
| By: | Pezzey, John C.V.; Jotzo, Frank |
| Abstract: | We give empirical welfare results for global greenhouse gas emission control, using the first multiparty model to combine tax-versus-trading under uncertainties with revenue recycling. Including multiple parties greatly reduces the welfare advantage of an emissions tax over emissions (permit) trading in handling abatement-cost uncertainties, from that shown by existing, single-party literature. But a tax has a different, much bigger advantage, from better handling uncertainties in business-as-usual emissions. Either mechanism's free emissions share, from tax thresholds or free permits, which lowers its possible welfare gain from revenue recycling, may however dominate any tax-versus-trading advantage. Moreover, political and practical constraints, such as the political unacceptability of no free emissions, the institutional unavailability of efficient emissions tax thresholds, and the unpopularity of recycling revenue as conventional tax cuts, make ideal welfare maximisation a poor guide for mechanism choice; and at optimal prices, trading currently tends to outperform taxation. |
| Keywords: | climate policy, emission pricing, tax vs. trading, uncertainties, revenue recycling, political economy, Environmental Economics and Policy, D810, H230, Q580, |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eerhrr:95049&r=env |
| By: | Ivanova, Galina; Rolfe, John; Tucker, Gail |
| Abstract: | This paper presents the results of a choice modeling survey of households in Queensland to assess values for reductions in national greenhouse emissions by 2020. The study is novel in two main ways. First, labeled alternatives were used to assess whether the types of broad management options for reducing net emissions (green power, alternative technologies or carbon capture) are significant in understanding preferences for reducing emissions. Second, the importance of the level and type of uncertainty involved in reductions is tested. They include (1) the uncertainty of achieving emissions reduction and (2) the uncertainty of international participation as the percentage of total global emissions covered by international agreements. The results of this survey identified how choice responses vary when the level of uncertainty associated with emissions reduction options are included within choice alternatives. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2010–05 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eerhrr:95051&r=env |
| By: | Jotzo, Frank; Mazouz, Salim; Pezzey, John C.V. |
| Abstract: | We analyse the long-term efficiency of the emissions target and of the provisions to reduce carbon leakage in the Australian Government's Carbon Pollution Reduction Scheme, as proposed in March 2009, and the nature and likely cause of changes to these features in the previous year. The target range of 5-15% cuts in national emission entitlements during 2000-2020 was weak, in that on balance it is too low to minimise Australia's long-term mitigation costs. The free allocation of outputlinked, tradable emission permits to Emissions-Intensive, Trade-Exposed (EITE) sectors was much higher than proposed earlier, or shown to be needed to deal with carbon leakage. It plausibly means that EITE emissions can rise by 13% during 2010-2020, while non-EITE sectors must cut emissions by 34-51% (or make equivalent permit imports) to meet the national targets proposed, far from a cost-effective outcome. The weak targets and excessive EITE assistance illustrate the efficiencydamaging power of collective action by the 'carbon lobby'. Resisting this requires new national or international institutions to assess lobby claims impartially, and more government publicity about the true economic importance of carbon-intensive sectors. Published in the Australian Journal of Agricultural and Resource Economics, volume 54, pages 185-202. |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:reg:wpaper:601&r=env |
| By: | Twomey, Paul; Betz, Regina; MacGill, Iain; Passey, Robert |
| Abstract: | An additional action reserve (AAR) is proposed as a mechanism that allows government and voluntary private interests to make additional emission reductions beyond a national cap. A proportion of Australian emission units (AEUs) is set aside each year. The units can then be retired if state or local government, businesses or individuals take specific emission reduction measures that go beyond those expected from the Carbon Pollution Reduction Scheme (CPRS). AEUs allocated to the reserve that are not retired through additional activities would be made available to CPRS participants. By providing an upper bound to such actions, the scheme would limit uncertainty about how many permits are available for emitters. The scheme would also provide a limit to the potential losses of auctioning revenue from AEU retirements. Compared with some other additional options (such as buying-and-retiring of permits or future national cap reductions) the scheme combines an open process with favourable accounting features for tangible, psychologically satisfying actions (such as installing a home solar PV system). These actions assure participants there is an immediate reduction in national emissions. Elements of this approach have already been seen in the Regional Greenhouse Gas Initiative (RGGI), an interstate emissions trading scheme that began in the United States in 2009. |
| Keywords: | Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eerhrr:94944&r=env |
| By: | Hertel, Thomas W.; Rosch, Stephanie D. |
| Abstract: | Although much has been written about climate change and poverty as distinct and complex problems, the link between them has received little attention. Understanding this link is vital for the formulation of effective policy responses to climate change. This paper focuses on agriculture as a primary means by which the impacts of climate change are transmitted to the poor, and as a sector at the forefront of climate change mitigation efforts in developing countries. In so doing, the paper offers some important insights that mayhelp shape future policies as well as ongoing research in this area. |
| Keywords: | Wetlands,Climate Change Mitigation and Green House Gases,Climate Change Economics,Environmental Economics&Policies,Science of Climate Change |
| Date: | 2010–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5468&r=env |
| By: | Christoph Böhringer, Carolyn Fischer and Knut Einar Rosendahl (Statistics Norway) |
| Abstract: | Individual countries are in the process of legislating responses to the challenges posed by climate change. The prospect of rising carbon prices raises concerns in these nations about the effects on the competitiveness of their own energy-intensive industries and the potential for carbon leakage, particularly leakage to emerging economies that lack comparable regulation. In response, certain developed countries are proposing controversial trade-related measures and allowance allocation designs to complement their climate policies. Missing from much of the debate on trade-related measures is a broader understanding of how climate policies implemented unilaterally (or subglobally) affect all countries in the global trading system. Arguably, the largest impacts are from the targeted carbon pricing itself, which generates macroeconomic effects, terms-of-trade changes, and shifts in global energy demand and prices; it also changes the relative prices of certain energy-intensive goods. This paper studies how climate policies implemented in certain major economies (the European Union and the United States) affect the global distribution of economic and environmental outcomes, and how these outcomes may be altered by complementary policies aimed at addressing carbon leakage. |
| Keywords: | cap-and-trade; emissions leakage; border carbon adjustments; output-based allocation; general equilibrium model |
| JEL: | Q2 Q43 H2 D61 |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:634&r=env |
| By: | Aline Chiabai; Dirk Rübbelke; Lisa Maurer |
| Abstract: | Whether Information and Communication Technology (ICT) constitutes a threat or a cure to environment´s deterioration is controversially discussed. Empirical evidence on the impacts of ICT is rare, so that generalisable lessons can be drawn is sparse. This study addresses exactly this critique by providing empirical results on the role of ICT in research for environmental sustainability. Application of ICT in research is generally regarded as a way to exploit such technology in favour of the environment. Our analysis shows that the use of ICT in environmental research is of great importance in the scientific community, but it can also play a crucial role in the policy context, as well as in the business sector.<br /> |
| Keywords: | Information and Communication Technology (ICT), biodiversity, climate change, energy efficiency, environmental research, natural resources, sustainability |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:bcc:wpaper:2010-18&r=env |
| By: | Ricardo Fuentes-Nieva (Regional Bureau for Africa at UNDP); Isabel Pereira (Human Development Report Office ay UNDP) |
| Abstract: | This paper presents an initial review of the theoretical and measurement discussions of sustainability and its relation to human development. As we show in this paper, there is an overall consensus about the importance of sustaining development and well-being over time, but in reality different development paradigms lead to different definitions and measures of sustainability. We review some of those measures, among which the Adjusted Net Savings (a green national accounting measure calculated by the World Bank and rooted in a weak concept of sustainability), the Ecological Footprint (calculated by the Global Footprint Network and rooted in a strong concept of sustainability, where environment is considered a critical resource), and the carbon dioxide emissions (a simple environmental indicator, used in international debate of climate change). Our analysis shows conflicting conclusions when studying the correlations between these indicators of sustainability and existing human development indicators, namely HDI, which emphasizes the need for further analysis to understand what “sustainable human development” means. Nevertheless, as we show here, over time there has been a close link between higher economic performance and energy consumption, which has been mostly based in the use of fossil fuels. |
| Keywords: | sustainability, human development, measurement, energy. |
| JEL: | O13 Q56 Q59 |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:hdr:papers:hdrp-2010-34&r=env |
| By: | Löschel, Andreas; Sturm, Bodo; Vogt, Carsten |
| Abstract: | In this paper, we investigate the real demand for climate protection. For this purpose we conducted a framed field experiment with a sample of the residential population in Mannheim, Germany. Participants were endowed with € 40 and given the opportunity to contribute to climate protection by purchasing European Union Allowances. Purchased allowances were withdrawn from the European Emissions Trading Scheme (EU ETS). While the median willingness to pay (WTP) for climate protection is zero the mean WTP is approximately € 12/tCO2. We analyse determinants of the observed individual demand behaviour and discuss the potential consequences, which result from the remarkably low WTP and its distribution for German climate policy. -- |
| Keywords: | experimental economics,demand for climate protection,climate change,willingness to pay |
| JEL: | Q51 Q54 C93 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:10068&r=env |
| By: | Yang, Hao; Yuan, Daji; Jin, W L; Saphores, Jean-Daniel M |
| Abstract: | Transportation system produces a large percentage of local pollutants including hydrocarbons (HC), carbon monoxide (CO), carbon dioxide from switching to alternative fuels, one measure would be to apply information and communication technologies to help us drive more smoothly so as to decrease pollutants emissions. This paper studies potential benefits of two green driving strategies based on inter-vehicle communication (IVC). Here green driving strategies are similar to intelligent speed adaptation , but we assume that an IVC-equipped vehicle is able to receive detailed trajectory information from other such vehicles with the help of IVC. For the purpose of evaluation, we integrate Newell’s car-following model and VT-Micro to establish a simulation platform. Market penetration rates of IVC-equipped vehicles and delivery delays of messages are two prominent features of IVC systems. We simulate stop-and-go traffic to calculate potential reductions in air pollutant emissions and fuel consumption under different market penetration rates and delivery delays. Results show that significant savings under frequent stop-and-go traffic conditions may be obtained with our strategies (HC: -88.3%, CO: -95.8%, NOx: -91.5%, CO2: -36.3%, Fuel Consumption: -71.3%) for the same travel time and almost the same overall travel distance. It is also shown that relatively large savings can be achieved even for a market penetration rate as low as 1% and communication delays larger than 2 minutes. In the future we will investigate environmental benefits of green driving strategies for more traffic scenarios and realistic communication scenarios. |
| Keywords: | Green Driving, Emissions, Fuel Consumption, VT-micro Emission Model |
| Date: | 2010–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:uctcwp:1602121&r=env |
| By: | Swallow, Brent; Leimona, Beria; Yatich, Thomas; Velarde, Sandra J. |
| Abstract: | Mechanisms of compensation and reward for environmental services (CRES) are becoming increasingly contemplated as means for managing human–environment interactions. Most of the functional mechanisms in the tropics have been developed within the last 15 years; many developing countries still have had little experience with functional mechanisms. We consider the conditions that foster the origin and implementation of functional mechanisms. Deductive and inductive approaches are combined. Eight hypotheses are derived from theories of institution and policy change. Five case studies, from Latin America, Africa, and Asia, are then reviewed according to a common framework. The results suggest the following to be important conditions for functional CRES mechanisms: (1) localized scarcity for particular environmental services, (2) influence from international environmental agreements and international organizations, (3) government policies and public attitudes favoring a mixture of regulatory and marketbased instruments, and (4) security of individual and group property rights. |
| Keywords: | carbon sequestration; ecosystem services; ecotourism; environmental services; institutional change; payments for environmental services; watershed services |
| JEL: | Q5 Q56 Q57 |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:26308&r=env |
| By: | Stern, David I. |
| Abstract: | This study uses a stochastic production frontier to model energy efficiency trends, in 85 countries over a 37 year period. No structure is imposed on technological change over time, although differences in technology level across the countries are modelled as a stochastic function of explanatory variables. These variables are selected by a literature survey and a theoretical model of energy-efficient technology choice. An improvement in a countryâs energy efficiency is measured as a reduction in energy intensity, while holding constant that economyâs mix of inputs and outputs. All other things remaining constant, the country using the least energy per unit output is on the global best-practice frontier. The model is used to derive decompositions of energy intensity and carbon emissions. It also examines whether there is a convergence across countries. The study shows that energy efficiency rises with increasing general total factor productivity. Energy efficiency is also higher in countries with undervalued currencies. Higher fossil fuel reserves are associated with lower energy efficiency. Energy efficiency converges over time across countries. Technological change was the most important factor counteracting the effect of economic growth in increasing global energy- use increase and carbon emissions. |
| Keywords: | Energy, efficiency, carbon, emissions, technological change, between estimator, Environmental Economics and Policy, Resource /Energy Economics and Policy, O13, O33, O47, Q43, Q54, Q55, Q56, |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eerhrr:94950&r=env |
| By: | Heinzel, Christoph; Winkler, Thomas |
| Abstract: | Quota obligation schemes based on tradable green certicates have become a popular policy instrument to expand power generation from renewable energy sources (RES). Their application, however, can neither be justied as a rst-best response to a market failure, nor, in a second-best sense, as an instrument mitigating distortionary eects of the emissions externality, if an emissions trading system exists that fully covers the energy industry. We study how ancillary reasons, in form of overcoming various barriers for RES use and establishing benecial side-eects, such as industry development, energy security, and abatement of pollutants not covered under the ETS, apply to the scheme recently introduced in Poland. While setting substantial expansion incentives, an advantage for local industry or job-market development or energy security can hardly be seen. With rising power prices for end consumers and awareness that the extra rents from the schemes mostly accrue to foreign investors and renewable and polluting generators, we expect a negative impact on social acceptance for RES and RES deployment support policies. |
| Keywords: | tradable green certicates, environmental policy, Poland, Resource /Energy Economics and Policy, |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eerhrr:95068&r=env |
| By: | Stavins, Robert N. |
| Abstract: | The straightforward way to slow climate change is to reduce the quantity of greenhouse gases (in particular, carbon dioxide) dumped into the atmosphere, giving the planet more time to recycle the offending chemicals. But in light of our late start, chances are we’re going to need all the help we can get to prevent brutal changes in weather, widespread coastal fl ooding and perhaps even the spread of diseases now confi ned to the tropics. Hence the logic in giving nature a helping hand in sequestering atmospheric carbon. |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:reg:wpaper:13&r=env |
| By: | Jin, Wen-Long; Yuan, Daji; Yang, Hao |
| Abstract: | The main purpose of this paper is to examine potential environmental benefits of green driving strategies with NGSim data on Interstate-80 near Berkeley, California. We calculate vehicles emissions before and after applying green driving strategies with the VT-Micro emission model. For each vehicle, its trajectory before applying green driving strategies is observed and given in the dataset. We assume that, with the help of green driving strategies, the vehicle could drive at a constant speed over the whole road section with the same travel distance and time as before. After examining impacts of speed-acceleration adjustment on calculated emissions and fuel consumptions, we choose 5127 out of 9951 cars and estimate potential savings in HC, CO, NOx, CO2, and fuel consumptions. With a new model of the relationships between emissions/fuel consumptions and average speeds, we can fit the data with R-squares close to or greater than 0.9 and find that green driving strategies are most effective for traffic flows with average speeds around 50 km/h and potential savings can be from 20% to 60% for different pollutants. In the future, we will continue our studies with more realistic information on vehicle types and other emission models. |
| Date: | 2010–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:uctcwp:1601973&r=env |
| By: | Wood, Peter John |
| Abstract: | This survey paper examines the problem of achieving global cooperation to reduce greenhouse gas emissions. Contributions to this problem are reviewed from non-cooperative game theory, cooperative game theory, and implementation theory. Solutions to games where players have a continuous choice about how much to pollute, games where players make decisions about treaty participation, and games where players make decisions about treaty ratication, are examined. The implications of linking cooperation on climate change with cooperation on other issues, such as trade, is examined. Cooperative and non-cooperative approaches to coalition formation are investigated in order to examine the behaviour of coalitions cooperating on climate change. One way to achieve cooperation is to design a game, known as a mechanism, whose equilibrium corresponds to an optimal outcome. This paper examines some mechanisms that are based on conditional commitments, and could lead to substantial cooperation. |
| Keywords: | Climate change negotiations, game theory, implementation theory, coalition formation, subgame perfect equilibrium, Environmental Economics and Policy, |
| Date: | 2010–05 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eerhrr:95061&r=env |
| By: | Jotzo, Frank |
| Abstract: | There is demand for qualitative and quantitative economic analysis on the optimum degree of climate change mitigation and adaptation, the optimal timing of such actions, and their optimum distribution between countries and sectors. This paper discusses what is, as well as what is not, possible for economic modelling in this field. Specific reference is made to the paper by Bosello, Carraro and de Cian (2009), as well as Tol (2009). Integrated assessment modelling can provide powerful qualitative insights (for example, about the need for both mitigation and adaptation and the interactions between the two, or the need for both individual and policy-driven adaptation). However, the more detailed quantitative results from such studies are subject are extremely limited. In many cases, they are virtually irrelevant as a policy guide. For these models to be useful representations of reality, economic climate change models need three important features: representation of uncertainty about impacts (in particular, the risk of abrupt climate change); fuller representation of economic impacts from climate change and inclusion of non-market impacts; and finally, modelling of equity dimensions. These features are absent in many models currently used. This leads to a tendency for quantitative results to be biased against mitigation as an option to address climate change and in favour of other adaptation. |
| Keywords: | Environmental Economics and Policy, Research Methods/ Statistical Methods, Resource /Energy Economics and Policy, |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eerhrr:94951&r=env |
| By: | Karen Pittel; Dirk Rübbelke |
| Abstract: | The paper analyzes the implications of local and global pollution when two types of abatement activities can be undertaken. One type reduces solely local pollution (e.g., use of particulate matter filters) while the other mitigates global pollution as well (e.g., application of fuel saving technologies). In the framework of a 2-country endogenous growth model, the implications of different assumptions about the degree to which global externalities are internalized are analyzed. Subsequently, we derive policy rules adapted to the different scenarios. Special attention is paid to pollution, growth and optimal policy in the case of asymmetric internalization.<br /> |
| Keywords: | economic growth, global and local externalities, government policies |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:bcc:wpaper:2010-15&r=env |
| By: | Simon Alcouffe (ESC Toulouse - Ecole Supérieure de commerce de Toulouse); Nicolas Berland (DRM - Dauphine Recherches en Management - CNRS : UMR7088 - Université Paris Dauphine - Paris IX); Benjamin Dreveton (CEREGE - IAE de Poitiers); Moez Essid (GRIISG - ISG paris) |
| Abstract: | This paper draws on Environmental Management Accounting (EMA) literature and cost driver theory to study the nature and role of environmental cost drivers. More specifically, two types of operations related to environmental protection were empirically examined: the removal of asbestos from buildings and soil remediation. Findings from a series of case studies are presented and discussed. The paper contributes to existing literature in three ways: (1) by testing the adaptability of cost drivers typologies in a non-traditional, non-industrial setting (2) by proposing a more dynamic vision of the cost of social and environmental responsibility of the firm, and (3) by shedding light on the complex interrelationships of environmental cost drivers. |
| Keywords: | Environmental Management Accounting, Cost Driver, Social & Environmental Responsibility |
| Date: | 2010–05–19 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00530528_v1&r=env |
| By: | Kipperberg, Gorm (University of Stavanger); Larson, Douglas M (University of California, Davis) |
| Abstract: | . |
| Keywords: | Stated preferences; mixed logit; willingness to pay; recycling programs; environmental policy |
| JEL: | C25 D12 H44 Q51 Q53 |
| Date: | 2010–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:stavef:2010_005&r=env |
| By: | Margherita Grasso; Matteo Manera; Aline Chiabai; Anil Markandya |
| Abstract: | In recent years there has been a large scientific and public debate on climate change and its direct as well as indirect effects on human health. According to World Health Organization (WHO, 2006), some 2.5 million people die every year from non-infectious diseases directly attributable to environmental factors such as air pollution, stressful conditions in the workplace, exposure to chemicals such as lead, and exposure to environmental tobacco smoke. Changes in climatic conditions and climate variability can also affect human health both directly and indirectly, via changes in biological and ecological processes that influence the transmission of several infectious diseases (WHO, 2003). In the past fifteen years a large amount of research on the effects of climate changes on human health has addressed two fundamental questions (WHO, 2003). First, can historical data be of some help in revealing how short-run or long-run climate variations affect the occurrence of infectious diseases? Second, is it possible to build more accurate statistical models which are capable of predicting the future effects of different climate conditions on the transmissibility of particularly dangerous infectious diseases? The primary goal of this paper is to review the most relevant contributions which have directly tackled those questions, both with respect to the effects of climate changes on the diffusion of non-infectious and infectious diseases. Specific attention will be drawn on the methodological aspects of each study, which will be classified according to the type of statistical model considered. Additional aspects such as characteristics of the dependent and independent variables, number and type of countries investigated, data frequency, temporal period spanned by the analysis, and robustness of the empirical findings are examined. <br /> |
| Keywords: | Climate change; Health; Statistical models; Non-infectious diseases; Infectious diseases; Malaria; Cardiovascular diseases |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:bcc:wpaper:2010-16&r=env |
| By: | Kragt, Marit; Bennett, Jeff; Jakeman, Tony |
| Abstract: | Natural resource management (NRM) typically involves complex decisions that affect a variety of stakeholder values. Efficient NRM, which achieves the greatest net environmental, social and financial benefits, needs to integrate the assessment of environmental impacts with the costs and benefits of investment. Integrated assessment (IA) is one approach that incorporates the several dimensions of catchment NRM, by considering multiple issues and knowledge from various disciplines and stakeholders. Despite the need for IA, there are few studies that integrate biophysical modelling tools with economic valuation. In this paper, we demonstrate how economic non-market valuation tools can be used to support an IA of catchment NRM changes. We develop a Bayesian Network model that integrates: a process-based water quality model; ecological assessments of native riparian vegetation; estimates of management costs; and non-market (intangible) values of changes in riparian vegetation. This modelling approach illustrates how information from different sources can be integrated in one framework to evaluate the environmental and economic impacts of NRM actions. It also shows the uncertainties associated with the estimated welfare effects. By estimating the marginal social costs and benefits, a cost-benefit analysis of alternative management intervention can be gained and provides more economic rationality to NRM decisions. |
| Keywords: | Bayesian networks, bio-economic modelling, catchment management, cost-benefit analysis, environmental values, integrated assessment and modelling, non-market valuation, riparian vegetation, Environmental Economics and Policy, Research Methods/ Statistical Methods, |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eerhrr:94949&r=env |
| By: | Dannenberg, Astrid |
| Abstract: | This paper experimentally analyzes the effects if signatories to an international environmental agreement (IEA) apply different voting schemes to determine the terms of the agreement. To this end, unanimity, qualified majority voting, and simple majority voting are compared with respect to the resulting pollution abatement level and social welfare. At first sight in line with theoretical predictions, the experiment shows that the change of the voting scheme implemented in an IEA does not significantly change social welfare. However, changing the majority required to determine the terms of an IEA alters the 'depth and breadth' of cooperation. The coalitions under the unanimity rule are relatively large and implement moderate effort levels while the coalitions with majority votes implement very high effort levels but attract only few participants. -- |
| Keywords: | international environmental agreements,cooperation, voting |
| JEL: | C72 C92 D71 H41 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:10072&r=env |
| By: | Rennings, Klaus; Rexhäuser, Sascha |
| Abstract: | This paper analyses two aspects of environmental regulations triggered by ecoinnovations. First, whether there are long term effects of regulation on innovation. Second, whether the impact of different types of regulation differ by type of the environmental benefit of the innovations. To answer these questions, the paper uses firm level data from the German part of the Community Innovation Survey 2009, in which companies were asked to cite the respective regulations to be responsive for the firms' introduced environmental related innovations. Regulations quoted by firms are classified into several policy types and also the age the respective regulations are calculated. We find evidence for long-term effects of environmental regulation on innovation. Furthermore, different types of regulations varied with respect to their impact on several environmental benefits of innovations. -- |
| Keywords: | environmental policy,environmental innovation,innovation surveys |
| JEL: | Q55 Q58 Q01 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:10074&r=env |
| By: | Căpuşneanu, Sorinel/I; Martinescu (Oprea), Dana Maria/G |
| Abstract: | This article treats the problem of environmental management system starting from definition and objectives stipulated according to ISO 14001. The success of implementation of the environmental management system consists in respecting its principles. It is described the role of employers' organizations in promoting environmental management systems. Also, there are described the implementation stages of an environmental management system in Romania. Each unrolled stage is synthesized and argued succeeding to catch the necessary essence of correct understanding by all participants to implementation process of environmental management system into an enterprise. There are accentuated the long term advantages of successful implementation environmental management system. The article ends with authors’ conclusions and some recommendations from the specialists of Romania. |
| Keywords: | environmental management system; objectives; principles; implementation; environmental quality. |
| JEL: | M41 Q56 M21 |
| Date: | 2010–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:26389&r=env |
| By: | Rupayan Pal; Bibhas Saha |
| Abstract: | This paper shows that, in case of differentiated products mixed duopoly, environmental damage increases (decreases) with the level of privatization, if the level of privatization is less (more) than certain level. It also shows that partial privatization is optimal from the social welfare point of view. However, the social welfare maximizing level of privatization damages the environment most. [WP-2010-018] |
| Keywords: | Privatization, mixed duopoly, environmental damage, environmental tax, social welfare |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:3122&r=env |
| By: | Michiel Nijboer |
| Abstract: | The transport sector is currently responsible for 23% of energy-related CO2 emissions, and transport associated CO2 emissions will more than double by 2050. This working paper evaluates the potential costs and benefits of using natural gas as a vehicle fuel for road transportation, as well as the policy related to its market development. |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ieaaaa:2010/11-en&r=env |
| By: | Guanghua Wan; Amelia U. Santos-Paulino |
| Keywords: | Development, Industrial Policy, Environmental Sustainability |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wa2010-10&r=env |
| By: | Carlsson, Fredrik (Department of Economics, School of Business, Economics and Law, Göteborg University); Kataria, Mitesh (Max Planck Institute of Economics); Krupnick, Alan (Resources for the Future); Lampi, Elina (Department of Economics, School of Business, Economics and Law, Göteborg University); Löfgren, Åsa (Department of Economics, School of Business, Economics and Law, Göteborg University); Qin, Ping (Peking University, College of Environmental Sciences and Engineering); Sterner, Thomas (Department of Economics, School of Business, Economics and Law, Göteborg University); Chung, Susie (Resources for the Future) |
| Abstract: | Using a choice experiment, we investigated preferences for distributing the economic burden of decreasing CO2 emissions in the two largest CO2-emitting countries: the United States and China. We asked respondents about their preferences for four burden-sharing rules to reduce CO2 emissions according to their country’s 1) historical emissions, 2) income level, 3) equal right to emit per person, and 4) current emissions. We found that U.S. respondents preferred the rule based on current emissions, while the equal right to emit rule was clearly least preferred. The Chinese respondents, on the other hand, preferred the historical rule, while the current emissions rule was the least preferred. Respondents overall favored the rule that was least costly for their country. These marked differences may explain the difficulties countries face in agreeing how to share costs, presenting a tough hurdle to overcome in future negotiations. We also found that the strength of the preferences was much stronger in China, suggesting that how mitigation costs are shared across countries is more important there.<p> |
| Keywords: | Climate; burden-sharing; fairness; China; United States |
| JEL: | Q51 Q52 Q54 |
| Date: | 2010–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0471&r=env |
| By: | Frederik Carlsson (Department of Economics, University of Gothenburg); Mitesh Kataria (Max Planck Institute of Economics, Jena); Alan Krupnick (Resources for the Future); Elina Lampi (Department of Economics, University of Gothenburg); Åsa Löfgren (Department of Economics, University of Gothenburg); Ping Qin (Peking University, College of Environmental Sciences and Engineering); Thomas Sterner (Department of Economics, University of Gothenburg); S. Chung (Resources for the Future) |
| Abstract: | Using a choice experiment, we investigated preferences for distributing the economic burden of decreasing CO2 emissions in the two largest CO2-emitting countries: the United States and China. We asked respondents about their preferences for four burden-sharing rules to reduce CO2 emissions according to their country's 1) historical emissions, 2) income level, 3) equal right to emit per person, and 4) current emissions. We found that U.S. respondents preferred the rule based on current emissions, while the equal right to emit rule was clearly least preferred. The Chinese respondents, on the other hand, preferred the historical rule, while the current emissions rule was the least preferred. Respondents overall favored the rule that was least costly for their country. These marked differences may explain the difficulties countries face in agreeing how to share costs, presenting a tough hurdle to overcome in future negotiations. We also found that the strength of the preferences was much stronger in China, suggesting that how mitigation costs are shared across countries is more important there. |
| Keywords: | Climate, burden-sharing, fairness, China, United States |
| JEL: | Q51 Q52 Q54 |
| Date: | 2010–11–02 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2010-074&r=env |
| By: | Rolfe, John; Windle, Jill |
| Abstract: | The focus of this report is to test if protection values at a particular GBR site may be easily transferred to other case studies of interest in the region. The research involved valuing three local case studies in the GBR and testing how values were consistent across site and population characteristics. The sites were chosen to reflect substantial heterogeneity in extent, ecological composition and condition, while values were assessed for both local and distant populations. The results are encouraging, indicating that although significant heterogeneity was identified with the mixed logit models, values were robust to various site and population differences. No significant difference in protection values between the three local case studies could be identified, and there was no significant difference in values between the local population and the Brisbane population. However, some evidence for distance effects was identified for the Brisbane population, with closer sites valued more highly. As well, potential losses were valued more highly (in absolute terms) than potential gains. The implication of these results is that protection values are likely to be higher for closer reef areas with risks of losses than these with opportunities for improvements. |
| Keywords: | Choice modelling, benefit transfer, population effects, Great Barrier Reef, willingness-to-pay, willingness-to-accept, Resource /Energy Economics and Policy, |
| Date: | 2010–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eerhrr:95052&r=env |
| By: | Jevan Cherniwchan |
| Abstract: | This paper argues the compositional shift from agricultural to industrial production - industrialization - is a central determinant of changes in environmental quality as economies develop. A simple two-sector model of neoclassical growth and the environment in a small open economy is developed to examine how industrialization affects the environment. The model is estimated using sulfur emissions data for 68 countries over the period 1970-2000. The results show the process of industrialization is a significant determinant of observed changes in emissions: a 1% increase in industry's share of total output is associated with an 24% increase in the level of emissions per capita. |
| JEL: | O41 Q56 |
| Date: | 2010–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:clg:wpaper:2010-28&r=env |
| By: | McCartney, Abbie; Cleland, Jonelle; Burton, Michael |
| Abstract: | This working paper utilises the choice modelling technique to investigate how information and understanding influences preferences of the general public for conservation of natural environments, specifically the tropical waterways and wetlands of the Kimberley region in Western Australia. The paper forms part of a larger study investigating preference divergence for environmental systems between experts and non-experts. By priming the public with more information about complex environmental problems, one might expect them to form preferences similar to that of experts. A preliminary analysis of public low and high information samples finds that, when birds and plants are the focus of species conservation with respect to the tropical waterways, increased information does not significantly impact preferences. However, when fish species conservation is considered significant differences are found. In this instance individuals appear to have reacted favourably to the additional information, recognising that rare species require more protection than widespread iconic species by placing higher values on their conservation. Generally speaking, respondents preferred high levels of conservation improvements over all attributes considered, rather than lower incremental improvements. Results should be interpreted with care as further analysis is required, including investigation of the alternative specific constant and inclusion of individual characteristics to explain sample heterogeneity. |
| Keywords: | Resource /Energy Economics and Policy, |
| Date: | 2010–05 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eerhrr:95065&r=env |
| By: | Rolfe, John; Windle, Jill |
| Abstract: | In this paper the results of a choice modelling experiment to value increased protection of the Great Barrier Reef in Australia is reported. There are very few previous studies that identify protection values for the Great Barrier Reef, making it difficult to evaluate whether the community benefits from future additional protection measures are larger than the costs involved. The valuation experiment that has been conducted is novel in two important ways. First, different management policies to increase protection have been included as labels in the choice experiment to test if the mechanisms to achieve improvements are important to respondents. Second, the level of certainty associated with predicted reef health has been included as an attribute in the choice profiles, helping to distinguish between outcomes of different management policies. The results show that protection values vary with the policy scope of the improvements being considered. Values are sensitive to whether protection will be generated by improving water quality entering the reef, increasing conservation zones or reducing greenhouse gas emissions, and the level of certainty of outcomes. The average household willingness to pay for five years for each additional 1% of protection is approximately $26.37 when the broad management options to generate improvements were included in the choice sets. These results can be extrapolated to a total value held by Queensland households of $132.8M to $171.5M per 1% improvement, depending on the assumptions used about the discount rate. |
| Keywords: | Resource /Energy Economics and Policy, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eerhrr:95070&r=env |
| By: | Louis Hotte (Department of Economics, University of Ottawa, Ottawa, ON) |
| Abstract: | We study the political economy of the environment in autocratic, weak and strong democracies when individuals can either mitigate the health consequences of domestic pollution privately or reduce pollution collectively through public policy. The setting is that of a small open economy in which incomes depend importantly on trade in dirty goods, where income inequality and the degree to which ordinary citizens exert voice in each dimension of the policy process distinguishes elites and ordinary citizens. The recognition that the health consequences of pollution can be dealt with privately at a cost adds an important dimension to the analysis of the political economy of environmental regulation, especially for an open economy. When private mitigation is feasible, inequality of incomes leads to an unequal distribution of the health burden of pollution (in accordance with the epidemiologic evidence), thus polarizing the interests of citizens in democracies and of ordinary citizens and elites in non-democratic regimes. Inequality in the willingness to bear the cost of private mitigation in turn interacts with the pollution costs and income benefits of trade in dirty goods to further polarize interests concerning both environmental stringency and the regulation of trade openness. In this context, we show how the eco-friendliness ranking of different political regimes varies with the cost of private mitigation and with the extent of income inequality, tending to converge when mitigation costs are high, and even producing a ranking reversal between democracies and autocracies, and between weak and strong democracies, when costs lie in an intermediate range. |
| Keywords: | pollution, environmental regulation, private mitigation, income inequality, democracy, trade, welfare, collective choice, political economy |
| JEL: | C7 D7 F18 Q56 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ott:wpaper:1007e&r=env |
| By: | Rolfe, John; Windle, Jill |
| Abstract: | This report compares evaluation frameworks for selecting landholder proposals to improve water quality. A water quality tender performed in the Burdekin region in Northern Australia in 2007/2008 was used as a case study. Tender bids can be assessed using an inputs-based best management practice scorecard or an outputs-based auction metric. Where landholder proposals are rated by inputs-based criteria, the scorecard approach, and other variants of multi-criteria analysis are commonly applied. Output-based approaches are typically applied in water quality and conservation tenders. This approach uses an environmental benefits index to summarise the cost-effectiveness of each proposal. The case study evaluation reported in this paper shows how multi-criteria analysis-type assessments are flawed. It demonstrates how public funding efficiency can be more than doubled by using auction metrics to assess landholder water quality improvement proposals. |
| Keywords: | water quality tender, auction metric, best management practice, input-based, output-based, Great Barrier Reef., Environmental Economics and Policy, Research Methods/ Statistical Methods, |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eerhrr:94939&r=env |
| By: | Hahn, Robert W.; Stavins, Robert N. |
| Abstract: | We examine an implication of the “Coase Theorem” which has had an important impact both on environmental economics and on public policy in the environmental domain. Under certain conditions, the market equilibrium in a cap-and-trade system will be cost-effective and independent of the initial allocation of tradable rights. That is, the overall cost of achieving a given aggregate emission reduction will be minimized, and the final allocation of permits will be independent of the initial allocation. We call this the independence property. This property is very important because it allows equity and efficiency concerns to be separated in a relatively straightforward manner. In particular, the property means that the government can establish the overall pollution-reduction goal for a cap-and-trade system by setting the cap, and leave it up to the legislature – such as the U.S. Congress – to construct a constituency in support of the program by allocating the allowances to various interests without affecting either the environmental performance of the system or its aggregate social costs. Our primary objective in this paper is to examine the conditions under which the independence property is likely to hold – both in theory and in practice. A number of factors can call the independence property into question theoretically, including market power, transaction costs, non-cost-minimizing behavior, and conditional allowance allocations. We find that, in practice, there is support for the independence property in some, but not all cap-and-trade applications. |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:reg:wpaper:47&r=env |
| By: | Rolfe, John; Windle, Jill |
| Abstract: | A number of studies have examined the effects of distance decay and the influence it might have on both use and non-use values. However, the relationship between environmental values and distance effects is less clear cut when iconic or special assets are involved. In this report, the effects of distance decay on protection values of the Great Barrier Reef in Australia are explored using two split sample choice experiments. The results suggest that the Townsville (local) population had larger use values than the Brisbane (distant) population. However, for iconic resources, where perceptions of responsibility, substitutes and information are reasonably consistent across population groups, non-use values remain constant across spatially different population groups. |
| Keywords: | Choice modelling experiment, distance decay, population effects, iconic assets, Great Barrier Reef, use values, non-use values, Resource /Energy Economics and Policy, |
| Date: | 2010–05 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eerhrr:95054&r=env |
| By: | Calford, Evan M.; Heinzel, Christoph; Betz, Regina |
| Abstract: | We analyse the eciency eects of the initial permit allocation given to rms with market power in both permit and output market. We examine two models: a long- run model with endogenous technology and capacity choice, and a short-run model with xed technology and capacity. In the long run, quantity pre-commitment with Bertrand competition can yield Cournot outcomes also under emissions trading. In the short run, Bertrand output competition reproduces the eects derived under Cournot competition, but displays higher pass-through prots. In a second-best setting of overallocation, a tighter emissions target tends to improve permit-market eciency in the short run. |
| Keywords: | Emissions trading, Initial permit allocation, Bertrand competition, EU ETS, Endogenous technology choice, Kreps and Scheinkman, Resource /Energy Economics and Policy, L13, Q28, D43, |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eerhrr:95066&r=env |
| By: | Rennings, Klaus; Rammer, Christian |
| Abstract: | The impact of environmental innovations on firm performance is ambiguous. On the one hand, regulatory-driven environmental innovation may impose additional costs to firms and lower their profits. On the other hand, eco-innovators could profit from lower uncertainty in innovation due to regulatory standards and demand-generating effects of regulation. In this paper we analyse (a) whether regulation-driven environmental innovation generate similar innovation success compared to other types of product and process innovation, and (b) whether regulation-driven environmental innovation increase or decrease firm success (as measured by return on sales). Using firm data from the German innovation survey, we find that both product and process innovations driven by environmental regulation generate similar success in terms of sales with new products and cost savings as other innovations do. However, we find different effects when looking on the field of environmental regulation that triggered innovations. Regulations in favour of sustainable mobility contribute to higher sales with market novelties while regulations in the field of water management lower this type of innovation success. With regard to a firm’s price-cost margin, new processes implemented in order to comply with environmental regulation requirements lower profitability, indicating higher costs for this type of innovation which cannot be passed on prices. Higher profit margins can be observed for firms with innovations triggered by regulations on recycling and waste management as well as on resource efficiency. -- |
| JEL: | Q55 Q58 L51 O31 L25 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:10065&r=env |
| By: | Mazur, Kasia; Bennett, Jeff |
| Abstract: | This research report investigates the effects of including a provision rule in choice modelling non-market valuation studies. Split samples with and without a provision rule were used to test for differences in household willingness-to-pay for improvements in environmental quality in the Hawkesbury-Nepean catchment. Local/rural and distant/urban sub-samples of residents were selected. The results of the study show that the inclusion of a provision rule had an effect on preferences in the distant/urban communities; however, the impact of a provision rule in the local/rural community sub-samples was negligible. |
| Keywords: | Choice modelling, incentive comparability, provision rule, non-market valuation, environment, Environmental Economics and Policy, Research Methods/ Statistical Methods, |
| Date: | 2010–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eerhrr:94945&r=env |
| By: | Spash, Clive L.; Ryan, Anthony M. |
| Abstract: | How heterodox are ecological economists and how ecological are heterodox economists? How do both differ, if at all, from neoclassical economists when addressing environmental problems? In 2009 we probed such questions by conducting an international survey at economic conferences on the environment and sustainability. This paper reports on surveys conducted at conferences of the European Society for Ecological Economics, the European Association of Environmental and Resource Economics, and the Association of Heterodox Economists. A key aim was to gain insight into the extent to which ecological economics can be described as a distinct field of research from orthodox environmental and resource economics. Conflict within the field has meant a prevalence of neoclassical articles and thought mixed in amongst more heterodox work. The question then arises are those participating in ecological economics ideologically and methodologically similar to those schools of thought falling under the heterodox economic umbrella or the orthodox? In addressing this question problems are identified with economic understanding of environmental problems and the lack of communication across schools and disciplines. Suggestions are made as to how we might, as a community of concerned scholars and activists, move forward. |
| Keywords: | Ecological economics; heterodox; neoclassical; methodology; ideology |
| JEL: | B40 Q0 B59 |
| Date: | 2010–10–29 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:26292&r=env |
| By: | Rolfe, John; Windle, Jill |
| Abstract: | The focus of this report is to report choice modelling experiments that have tested the consistency of values across differently scoped dimensions of an environmental asset. The case study involved the Great Barrier Reef (GBR) in Australia, where a key policy question is to identify if protection values for one part of the reef can be transferred to different sections and scaled from local case studies to the whole reef area without adjustment. The study involved 12 split-samples in three CM experiments to assess values for the whole GBR, a regional section of the GBR and a local reef area while controlling for variations across populations, the scope of the choice tasks, and survey formats. The results demonstrate that issues of geographic scope and scale remain challenging in CM experiments. Contrary to expectations, the proportional values for different regions of the GBR remained consistent when geographic scope and scale increased, while absolute values declined. This was despite substantial efforts in designing and presenting the surveys to define the amenity of interest to respondents. The results indicate that it is difficult to identify single unit values for an environmental amenity that can be easily transferred and extrapolated across geographic regions and scales. However, there may be good theoretical reasons why marginal values for specific areas of interest in the GBR have much higher protection values, which then decline as larger and more general areas are considered. |
| Keywords: | Resource /Energy Economics and Policy, |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eerhrr:95048&r=env |
| By: | Kurt Kratena (WIFO); Michael Wüger (WIFO) |
| Abstract: | This paper deals with the total CO2 impact of households in a simple dynamic E3 model (economy/energy/environment), comprising a model block of private consumption and an input-output model. The consumption model describes the demand for different durables and nondurables, derived from intertemporal optimisation and has been estimated econometrically with Austrian time series data. Energy demand of households in addition to economic variables also depends on the energy-efficiency as well as the level of energy-using durables (electrical and non-electrical appliances, vehicles, video, audio, computer goods). Higher energy-efficiency also leads to the well known "rebound effect", as the "service" of energy becomes cheaper. Investment in new and potentially more energy-efficient durables is guided by intertemporal optimisation. Policies with incentives to switch towards a more energy-efficient durable stock have an impact on energy consumption, as well as on the demand for other nondurables and – due to the investment – on durables and therefore cause multiple effects on energy demand and emissions. Indirect energy demand and CO2 emissions of production for households is also taken into account. An exemplary simulation of a scrappage policy scheme for private cars reveals that – though the direct "rebound effect" lies within the range found in the literature – the direct and indirect feedback mechanisms on energy demand of the total economy might be completely different. |
| Keywords: | energy demand and environmental impact, durable goods, intertemporal optimisation with liquidity constraints, input-output modelling |
| Date: | 2010–11–03 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2010:i:382&r=env |
| By: | Papler, Drago; Bojnec, Å tefan |
| Abstract: | This paper investigates the question of promotion of more efficient use of energy and for an increase in supply and use of energy from the renewable sources of energy in rural areas. The empirical research is based on the analysis of the survey evidence that is obtained by the written questionnaire. The 516 in-depth surveys were conducted among the scholars, students, and employees from social sciences, natural sciences, electrical energy supply, and energy management in the six different towns in Slovenia. The surveys data are analysed by using descriptive statistics, comparisons of average values, correlation, and multivariate factor analysis. The needs for more efficient energy use between different users and the significance of production of renewable sources of energy from different sources have been confirmed. This has implications for rationalization of energy supply, efficient energy use and use of the renewable sources of energy for more underlined environmental protection and the sustainable development. |
| Keywords: | renewable sources of energy, rural development, promotion, Slovenia, Community/Rural/Urban Development, L94, O13, Q42, M39, |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa118:95307&r=env |
| By: | Wichelns, Dennis |
| Abstract: | In summary, irrigation costs and prices are rising in most regions of the United States, due to a combination of increasing scarcity, changes in public preferences regarding water allocation among competing uses, increasing budget scrutiny in the national and state legislatures, rising energy prices, and increasing awareness of climate change and the potential implications for rainfall and the availability of surface water resources. These issues likely will continue encouraging public officials to utilize water pricing and other market-based incentives to motivate further improvements in water use efficiency in agriculture and other sectors. |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:reg:wpaper:46&r=env |
| By: | Alpízar, Francisco; Carlsson, Fredrik; Naranjo, Maria A. |
| Abstract: | The risk of losing income and productive means due to adverse weather can differ significantly among farmers sharing a productive landscape and is, of course, hard to estimate or even “guesstimate” empirically. Moreover, the costs associated with investments in adaptation to climate are likely to exhibit economies of scope. We explore the implications of these characteristics on Costa Rican coffee farmers’ decisions to adapt to climate change, using a framed field experiment. Despite having a baseline of high levels of risk aversion, we still found that farmers more frequently chose the safe options when the setting is characterized by unknown risk (that is, poor or unreliable risk information). Second, we found that farmers, to a large extent, coordinated their decisions to secure a lower adaptation cost and that communication among farmers strongly facilitated coordination. |
| Keywords: | risk, ambiguity, technology adoption, climate change, field experiment |
| JEL: | C93 D81 H41 Q16 Q54 |
| Date: | 2010–11–03 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-09-18-rev-efd&r=env |
| By: | Hahn, Robert W. |
| Abstract: | In response to the increasing impact of laws and regulations, several governments have introduced economic analysis as a way of improving regulatory decision making. This paper provides the first comprehensive assessment of governmentsupported economic analysis of laws and regulations. It also reviews the changing role of economic analysis in regulatory decision making. I find that there is growing interest in the use of economic tools, such as benefit–cost analysis; however, the quality of analysis in the U.S.A. and European Union frequently fails to meet widely accepted guidelines. Furthermore, the relationship between analysis and policy decisions is tenuous. To address this situation, I recommend alternative legal and institutional frameworks that could allow economics to play a more central role in regulatory decision making. In addition, I suggest that prediction markets could help improve regulatory policy. Published in the International Review of Environmental and Resource Economics: Vol. 3:No 4, 2010, pp. 245-298. |
| Date: | 2010–05 |
| URL: | http://d.repec.org/n?u=RePEc:reg:wpaper:611&r=env |
| By: | Weber, Anja Michaela; Nuppenau, Ernst-August |
| Abstract: | Agri-environmental schemes provide payments for farmers in return for environmental services. Their implementation induces transaction costs for administration and farmers. Although transaction costs became subject of research in recent years, little attention has been paid to activities which create them. This paper uses insights from Principal-Agent-Theory to show, how information gaps between contracting partners result in tradeoffs inducing activities conducted at implementation level. A Grassland Extensification Scheme, provided in Hesse, Germany, serves as a case-study. The paper shows that attempts and incentives to overcome informational gaps are different for administration and farmer. Further, attempts to reduce transaction costs of own activities may have spillover effects on the transaction costs of the contracting partner and along the transaction process. Those effects should be taken into account in discussions on scheme evaluation and development. |
| Keywords: | agri-environmental schemes, transaction costs, principal-agent-theory, hesse, Germany, Community/Rural/Urban Development, Q18, Q23, |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa118:94919&r=env |
| By: | Benjamin Bureau (CERNA - Centre d'économie industrielle - Mines ParisTech) |
| Abstract: | This paper analyses the distributional effects of alternative scenarios of carbon taxes on car fuels using disaggregated French panel data from 2003 to 2006. It incorporates household price responsiveness that differs across income groups into a consumer surplus measure of tax burden. Carbon taxation is regressive before revenue recycling. However, taking into account the benefits from congestion reduction induced by the tax mitigates regressivity. We show also that recycling additional revenues from the carbon tax either in equal amounts to each household or according to household size makes poorest households better off. |
| Keywords: | carbon tax; distributional effects |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00530054_v1&r=env |
| By: | de Chazal, Jacqueline |
| Abstract: | I offer a protocol for assessing the sustainability of liveability. This protocol draws on a framework developed to assess vulnerability, and offers two key pertinent features. These are (a) a capacity to incorporate multiple and shifting stakeholder values, and (b) a means of moving from expressions of liveability to underlying ecological attributes that deliver or constrain system change. The applicability of these features to both assessing the sustainability of liveability, and a reappraisal given system change are illustrated using data from a study site in the French Alps. The central place of values intrudes into liveability and sustainability so as to complicate the situation. Even so, the protocol presented here is able to ground the abstractions and equivocation in a transparent and explicit set of announcements. Laying the steps out in the open allows for consistency in comparison and replication without artificially removing the labile flexibility embedded in liveability and sustainability. |
| Keywords: | Resource /Energy Economics and Policy, |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eerhrr:95056&r=env |
| By: | Akter, Sonia; Bennett, Jeff |
| Abstract: | The numerical certainty scale (NCS) and polychotomous choice (PC) methods are two widely used techniques for measuring preference uncertainty in contingent valuation (CV) studies. The NCS follows a numerical scale and the PC is based on a verbal scale. This report presents results of two experiments that use these preference uncertainty measurement techniques. The first experiment was designed to compare and contrast the uncertainty scores obtained from the NCS and the PC method. The second experiment was conducted to test a preference uncertainty measurement scale that combines verbal expressions with numerical and graphical interpretations: a composite certainty scale (CCS). The construct validity of the certainty scores obtained from these three techniques was tested by estimating three separate ordered probit regression models. The results of the study can be summarised in three key findings. First, the PC method generates a higher proportion of âyesâ responses than the conventional dichotomous choice elicitation format. Second, the CCS method generates a significantly higher proportion of certain responses than the NCS and the PC methods. Finally, the NCS method performs poorly in terms of construct validity. Overall, the verbal measures perform better than the numerical measure. The CCS is a promising method to measure preference uncertainty in CV studies. To better understand its strengths and weaknesses however, further empirical applications are needed. |
| Keywords: | preference uncertainty, contingent valuation, numerical certainty scale, polychotomous choice method, composite certainty scale, climate change, Australia., Environmental Economics and Policy, Research Methods/ Statistical Methods, Q51, Q54, |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eerhrr:94942&r=env |
| By: | Gianasi, L.M.; Tubaldini, M.A. |
| Abstract: | This article focuses on one of the themes developed in the Project leader between Fluminense Federal University - UFF (Rio de Janeiro State) and Federal University of Minas Gerais - UFMG (Minas Gerais State) sponsored by CAPES (Coordination of Improvement of Higher Education Personnel). The research is developed in Earth and Society Nucleus - Study Group on Agrarian Geography, Familiar Agriculture and Peasant Culture and the Laboratory of Agrarian Geography and Agriculture Family, linked to the Graduate Program in Geography and the Department of Geography of UFMG and the Research Center for Agricultural-Environmental of the Graduate Program in Geography of UFF. The main project is related with "Family agriculture, environmental sustainability and territoriality in the Amazon". In this paper the proposal is to discuss one part of the global research: âterritoriality of the agroecological and conventional systems in family farming in Rondônia - the Amazon forest. This study will present a brief discussion about the qualitative contribution of agroecological systems for the family farmers in the state of Rondônia and their effects on regional-local sustainable development. In the conventional agricultural method it will be presented the evidence of degradation of the environment in some figures. The focus of this paper is on a reinterpretation of family farmers that practice an agro-ecologic agriculture and others in this area. Intend to debate where the agroecological families are located in this territory if has or not a territory of agroecology, how they can survive using this type of agriculture and to show the importance of the commercialization (especially in the trade fair) of this production as a source of economic resources for this families. |
| Keywords: | agroecology, Rondôniaâamazon Region, familiar agriculture., Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95202&r=env |
| By: | Venables, Anthony J. |
| Abstract: | Countries with substantial revenues from renewable resources face a complex range of revenue management issues. What is the optimal time profile of consumption from the revenue, and how much should be saved? Should saving be invested in foreign funds or in the domestic economy? How does government policy influence the private sector, where sustainable growth in the domestic economy must ultimately be generated? This paper develops the issues in a simple two-period model, and argues that analysis must go well beyond the simple permanent income approach sometimes recommended. |
| JEL: | E2 O11 H0 Q32 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ner:oxford:http://economics.ouls.ox.ac.uk/14932/&r=env |
| By: | Berg, Nathan; Hoffrage, Ulrich |
| Abstract: | Given free information and unlimited processing power, should decision algorithms use as much information as possible? A formal model of the decision making environment is developed to address this question and provide conditions under which informationally frugal algorithms, without any information or processing costs whatsoever, are optimal. One cause of compression that allows optimal algorithms to rationally ignore information is inverse movement of payoffs and probabilities (e.g., high payoffs occur with low probably and low payoffs occur with high probability). If inversely related payoffs and probabilities cancel out, then predictors that correlate with payoffs and consequently condition the probabilities associated with different payoffs will drop out of the expected-payoff objective function, severing the link between information and optimal action rules. Stochastic payoff processes in which rational ignoring occurs are referred to as compressed environments, because optimal action depends on a reduced-dimension subset of the environmental parameters. This paper considers benefits and limitations of economic models versus other methods for studying links between environmental structure and the real-world success of simple decision procedures. Different methods converge on the normative proposition of ecological rationality, as opposed to axiomatic rationality based on informational efficiency and internal consistency axioms, as a superior framework for comparing the effectiveness of decision strategies and prescribing decision algorithms in application. |
| Keywords: | Ecological rationality; Bounded rationality; Frugality; Simplicity |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:26372&r=env |
| By: | Osberghaus, Daniel; Finkel, Elyssa; Pohl, Max |
| Abstract: | Given that many of the predicted effects of climate change are considered imminent and unavoidable, the need to mainstream adaptation as a viable coping measure among private households is becoming a topic of increasing importance. However, little research to date has assessed the factors influencing the motivation to autonomously adapt, nor any successful measures for instigating this behavioural change. This study investigates whether providing locally-focused vs. globally-focused information about the effects of climate change influences the personal perceived risk (PPR) of individual people. Based on a socio-psychological model, Protection Motivation Theory (PMT), it is hypothesized that a higher PPR will lead to a higher motivation to adapt. While this hypothesis has been empirically confirmed by the study, it has been found that providing information on climate change effects that is more personally relevant to the individual and is concerned with his local surroundings does not significantly increase PPR. This may be due to a trade-off between spatial-temporal distance and the comparably low severity of predicted effects in the study region. Interestingly, providing any kind of information, irrespective of having a global or local focus, also did not increase PPR as compared to receiving no information. These results suggest that the sole provision of information about expected climate change impacts, even if tailored to one's individual context, does not significantly increase PPR and consequently the motivation to adapt. Another necessary factor might be increasing the knowledge about concrete coping options to allow people to weigh up their personal options. -- |
| JEL: | Q54 Q58 D83 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:10061&r=env |
| By: | McAfee, R. Preston; Miller, ALan |
| Abstract: | We develop a model of scarce, renewable resources to study the commons problem. We show that, contrary to conventional wisdom, property rights can often be less efficient than a commons. In particular, we study two effects: (1) waste which arises when individuals expend resources to use a resource unavailable due to congestion and (2) the risk of underutilization of the resource. We provide necessary and sufficient conditions for each effect to dominate the other when the cost of determining the availability of a resource is low. |
| Keywords: | Tragedy of the Commons; Spectrum; Open Access; Appointments; Property Rights; Reservations |
| JEL: | D23 K23 D45 |
| Date: | 2010–11–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:26423&r=env |
| By: | Nuppenau, Ernst-August |
| Abstract: | We will analyze a newly emerging conflict within the second pillar of the rural de¬ve¬lo¬pment policy of the EU: a conflict between those farmers, who want to par¬ti¬ci¬pa¬te in high nature value agriculture, and farmers, who feel negative¬ly im¬pac¬ted by supporting nature provision. We see a link through com¬petition for land between nature provision in agriculture and cost minimal production of commer¬cial farmers. The idea is to model this conflict using a political bargain appro¬ach and make a contribution on how to solve the conflict by innovative institutional arrangements. The power of groups will be analyzed and what governments can do. |
| Keywords: | conflict, political economy, nature provision, Community/Rural/Urban Development, |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa118:95313&r=env |
| By: | Voiculet, Alina; Belu, Nicoleta; Parpandel, Denisa Elena; Rizea, Ionela Carmen |
| Abstract: | Abstract External environment of an organization includes a variety of factors, whose existence, influence its behavior and performance. The action of these factors may be direct (for example, the actions of competitors) or indirect (for example, changes in business climate), and external environmental analysis is done in two different contexts: meso and macro environment. Are concerned, to be analyzed, those major variables that are affecting the organization, providing, strategic diagnosis, information on strategic situation complementary to those offered by internal analysis. Tests results at this level senses opportunities and threats existing and potential success factors of field work. Analyzing thus two types of environment, (meso and macro environment) can be identified strategic directions for action or policy options. |
| Keywords: | Keywords: strategy; external environment; factors |
| JEL: | O1 P23 L1 |
| Date: | 2010–10–29 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:26303&r=env |
| By: | Ward, Michael; Kompas, Tom |
| Abstract: | Policy makers are confronted daily with uncertainty, especially in complex areas like biosecurity. One way to improve decision-making and reduce uncertainties is to collect more information. Information is costly â whether the value of improved decision-making justifies the cost is a fundamental question facing policy makers. This paper addresses that question by making three practical contributions for binary choices (such as whether to implement or forego a particular policy). First, it analyses the determinants of the value of information, and how that value changes with features of the problem. Second, it uses this analysis to derive simple rules of thumb which provide upper bounds on the value of additional information. Third, it provides a practical application of the value of information in deciding whether to attempt eradication of the red imported fire ant. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eerhrr:94946&r=env |
| By: | Samantha Ölz; Milou Beerepoot |
| Abstract: | This paper is part of the IEA ongoing analysis of global renewable energy markets and policies. It focuses on six Southeast Asian countries: Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. The report investigates the potentials and barriers for scaling up market penetration of renewable energy technologies in the electricity, heating and transport sectors in the six countries. In addition to analysing the implications of effective policies on renewable energy market growth, it examines how to overcome economic and non-economic barriers that slow investment in renewable energy, and offers policy recommendations to encourage effective and efficient exploitation of renewable energy in Southeast Asia. |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ieaaaa:2010/6-en&r=env |
| By: | Pothen, Frank |
| Abstract: | A diverse set of tools has been developed in Industrial Ecology to tackle the problems caused by human economic activity. These instruments include Life Cycle Assessment (LCA) and Material Flow Analysis (MFA). Especially LCA is now increasingly used in policy making. Design and Evaluation of policy measures necessitates careful weighing of costs and benefits. One has to consider the complex economic effects imposed by regulation, like costs for the industries affected by regulation, indirect effects on other industries and ecologically important rebound effects. This article discusses to what extent this evaluation is possible within LCA and MFA models. It is found that these models do not sufficiently incorporate the overall consequences of regulation and hence are not very suitable to measure the advantages or disadvantages of regulations. Therefore, adding economic aspects to Industrial Ecology models seems promising. In policy making, the effects imposed on the whole economy have to be captured, which calls for a general equilibrium framework. A Life Cycle based Computable General Equilibrium Model is proposed as a tool to assess the economic effects of regulation while remaining in life cycle thinking. -- |
| JEL: | D58 Q50 Q57 Q58 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:10067&r=env |
| By: | Maraglino, T.; Ricco, V.; Schiralli, M.; Giordano, R.; Pappagallo, G. |
| Abstract: | Drought and desertification are largely considered as the major and most complex natural hazards. This is mainly due to the complexity of the web of impacts that ripple through too many sectors causing serious economic, social and environmental consequences. Hence, a wide range of actors are interested by drought effects. Empirical investigations in scientific literature have highlighted the differences between the stakeholder' perceptions of drought and desertification phenomena and the results of scientific â technical evaluation. There is no unique definition of the problem, but each individual has her/his own perception of drought and desertification, which is influenced by previous drought experiences and the mental models used to analyse these experiences. This could result in ambiguity in the definition of the problem. The ambiguity in drought and desertification definition could have a strong negative impact on the effectiveness of mitigation strategies. For these reasons, the involvement of stakeholder in the decision making process for drought and desertification management since its early stages has played a fundamental role. This work describes the experiences done to support drought and desertification management in the Apulia Region (Southern Italy). The methods and tools adopted in two different phases are described and the lessons learned during the process are discussed. The work is structured as follows: in section 1 there is an introduction and a description of the backgrounds regarding the project and the investigated territory. The objectives of the study and the empirical methodology applied state in section 2. Section 3 presents discussion and suggestion on decision making process. Conclusions and final remarks are proposed in section 4. |
| Keywords: | Stakeholder, desertification, decision making process., Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95201&r=env |