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on Environmental Economics |
| By: | Burnett, J. Wesley; Bergstrom, John |
| Abstract: | One of the major criticisms of past environmental Kuznets curve (EKC) studies is that the spatiotemporal aspects within the data have largely been ignored. By ignoring the spatial aspect of pollution emissions past estimates of the EKC implicitly assume that a regionâs emissions are unaffected by events in neighboring regions (i.e., assume there are no transboundary pollution emissions between neighbors). By ignoring the spatial aspects within the data several past estimates of the EKC could have generated biased or inconsistent regression results. By ignoring the temporal aspect within the data several past estimates of the EKC could have generated spurious regression results or misspecified t and F statistics. To address this potential misspecification we estimate the relationship between state-level carbon dioxide emissions and income (GDP) accounting for both the spatiotemporal components within the data. Specifically, we estimate a dynamic spatiotemporal panel model using a newly proposed robust, spatial fixed effects model. This new estimation scheme is appropriate for panels with large N and T. Consistent with the EKC hypothesis we find the inverted-U shaped relationship between CO2 emissions and income. Further, we find adequate evidence that carbon dioxide emissions and state-level GDP are temporally and spatially dependent. These findings offer policy implications for both interstate energy trade and pollution emission regulations. These implications are particularly important for the formulation of national policies related to the 2009 Copenhagen Treaty in which the U.S. has committed to significantly reduce greenhouse gas emissions over the next twenty years. |
| Keywords: | Environmental Kuznets Curve, Carbon Dioxide, Spatial Econometrics, Panel Data Econometrics, Time Series Analysis, Environmental Economics, Pollution Economics, Environmental Economics and Policy, Q50, Q53, Q43, C01, C33, |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ugeofs:96031&r=env |
| By: | Nadine Heitmann; Setareh Khalilian |
| Abstract: | CO2 emissions from international shipping, which are currently unregulated, are predicted to rise from 2.7% today to 18% in 2050. International bunker fuel emissions have been excluded from any commitment in the Kyoto Protocol; the UNFCCC conference in Copenhagen also failed to bring about clear directions on how to proceed with these emissions. In this paper we investigate the various options suggested by the Subsidiary Body for Scientific and Technological Advice (SBSTA) of the UNFCCC for allocating CO2 emissions from international shipping to individual countries. We discuss economic and regulatory issues related to these options and the consequences of applying them. We evaluate the various options on the basis of environmental effectiveness, possibility of legal implementation, and fairness of burden sharing. We conclude that an allocation of international shipping emissions should be conducted on the basis of the operating company |
| Keywords: | climate change, international shipping, CO2 emissions |
| JEL: | Q52 Q54 Q56 |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1655&r=env |
| By: | Pierre Guigon |
| Abstract: | In this paper, we aim to examine how voluntary carbon markets can provide a valuable contribution to strengthening domestic and international climate policies. Voluntary markets are defined as small and unregulated segments of an established carbon market that are driven by voluntary offsetting of GHG emissions.<BR>Ce document vise à examiner comment les marchés volontaires du carbone peuvent contribuer utilement à renforcer les politiques climatiques nationales et internationales. Il s’agit de petits segments non réglementés d’un marché du carbone bien établi qui reposent sur la compensation volontaire des émissions de GES. |
| Keywords: | climate change, emissions trading systems, changement climatique, système d’échange de droits d’émissions |
| JEL: | Q54 Q58 |
| Date: | 2010–08–03 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:19-en&r=env |
| By: | ZhongXiang Zhang (East-West Center); ; |
| Abstract: | Just prior to the Copenhagen climate summit, China pledged to cut its carbon intensity by 40-45% by 2020 relative to its 2005 levels to help reach an international climate change agreement at Copenhagen or beyond. This raises the issue of whether such a pledge is ambitious or just represents business as usual. To put China's climate pledge into perspective, this paper examines whether this proposed carbon intensity goal for 2020 is as challenging as the energy-saving goals set in the current 11th five-year economic blueprint, to what extent it drives China's emissions below its projected baseline levels, and whether China will fulfill its part of a coordinated global commitment to stabilize the concentration of greenhouse gas emissions in the atmosphere at the desirable level. Given that China's pledge is in the form of carbon intensity, the paper shows that GDP figures are even more crucial for determining impacts on energy or carbon intensity than are energy consumption and emissions data by examining the revisions of China's GDP figures and energy consumption in recent years. Moreover, the paper emphasizes that China's proposed carbon intensity target not only needs to be seen as ambitious, but more importantly it needs to be credible. Finally, it is concluded with a suggestion that international climate change negotiations need to focus on 2030 as the targeted date to cap the greenhouse gas emissions of the world's two largest emitters in a legally binding global agreement. |
| JEL: | Q42 Q43 Q48 Q52 Q53 Q54 Q58 |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ewc:wpaper:wp113&r=env |
| By: | Kenji Fujiwara (Kwansei Gakuin University) |
| Abstract: | Recent empirics report that transport cost reductions signicantly contribute to rapidly growing world trade. This paper develops a reciprocal market model of intra-industry trade with transboundary pollution from consumption to consider how market integration in the form of transport cost reductions aects the noncooperative choice of an environmental policy and the equilibrium welfare. I show that market integration can improve welfare locally, but that welfare under any non-prohibitive trade cost can not be higher than welfare under autarky. This possibility of trade losses exhibits a sharp contrast to the case of production-generated pollution. |
| Keywords: | transboundary pollution, consumption-generated pollution, gains from trade; environmental policy |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:kgu:wpaper:62&r=env |
| By: | Jack Pezzey (Fenner School of Environment and Society at the Australian National University); Frank Jotzo (Resource Management in Asia-Pacific Program in the Crawford School of Economics and Government at the Australian National University) |
| 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. |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:een:eenhrr:1068&r=env |
| By: | William Blyth |
| Abstract: | Power generation from fossil fuel is one of the largest sources of greenhouse gas emissions, representing 41% of global energy-related CO2 emissions. Combined with the fact that there are a number of low-carbon technologies available for generating electricity, the sector is therefore a key policy target for delivering near-term and long-term reductions in emissions. This report identifies the importance of these risk factors in the economics of transition by illustrating the case of investment in the power sector. To a great extent, the transition to a lowcarbon power sector means dealing with coal plants, which is the largest contributor, accounting for 73% of global power sector CO2 emissions, and particularly those from the United States, Europe and China, which contribute 17%, 9% and 24% respectively of global power sector CO2 emissions. |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ieaaaa:2010/2-en&r=env |
| By: | Rob Dellink; Stéphanie Jamet; Jean Chateau; Romain Duval |
| Abstract: | Emissions trading systems (ETS) can play a major role in a cost-effective climate policy framework. Both direct linking of ETSs and indirect linking through a common crediting mechanism can reduce costs of action. We use a global recursive-dynamic computable general equilibrium model to assess the effects of direct and indirect linking of ETS systems across world regions. Linking of domestic Annex I ETSs leads to moderate aggregate cost savings, as differences in domestic permit prices are limited. However, the economy of the main seller, Russia, is negatively affected by the real exchange rate appreciation that is induced by the large export of permits. The cost-saving potential for developed countries of well-functioning crediting mechanisms appears to be very large. Even limited use of credits would nearly halve mitigation costs; cost savings would be largest for carbon-intensive economies. However, one open issue is whether these gains can be fully reaped in reality, given that direct linking and the use of crediting mechanisms both raise complex system design and implementation issues. The analysis in this paper shows, however, that the potential gains to be reaped are so large, that substantial efforts in this domain are warranted.<BR>Les systèmes d’échange de droits d’émission peuvent jouer un rôle considérable dans le cadre d’une politique climatique efficace par rapport aux coûts. Le couplage direct de ces systèmes, aussi bien qu’indirect à travers un mécanisme commun d’attribution de crédits, peut réduire les coûts de l’action. Nous utilisons un modèle mondial dynamique récursif d’équilibre général calculable pour évaluer les effets du couplage direct et indirect des systèmes d’échange de droits d’émission dans les différentes régions du monde. Le couplage des systèmes d’échange nationaux des pays visés à l’annexe I entraîne de faibles économies dans l’ensemble, car les différences de prix entre permis nationaux sont limitées. Cela étant, l’économie du principal vendeur - la Russie - est mise à mal par l’appréciation du taux de change réel due aux fortes exportations de permis. Les économies que pourraient réaliser les pays développés grâce à des mécanismes efficaces d’attribution de crédits d’émission semblent très importantes. Un recours même limité à ces crédits permettrait en gros de réduire de moitié les coûts de l’atténuation ; les économies à forte intensité de carbone sont celles qui feraient le plus d’économies. Il reste à savoir cependant si, concrètement, ces avantages pourraient être exploités en totalité, compte tenu des problèmes complexes de conception et de mise en oeuvre que posent tant le couplage direct que les mécanismes d’attribution de crédits. L’analyse présentée dans ce rapport montre toutefois que les avantages à en tirer peuvent être si grands qu’il se justifie de déployer des efforts considérables dans ce domaine. |
| Keywords: | emissions trading systems, Climate mitigation policy, general equilibrium models, système d’échange de droits d’émissions, Politique d’atténuation du changement climatique, modèles d’équilibre général |
| JEL: | H23 O41 Q54 |
| Date: | 2010–08–04 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:20-en&r=env |
| By: | Kenji Fujiwara (Kwansei Gakuin University) |
| Abstract: | Recent empirics suggest the relevance of transport cost reductions for world trade growth along with eliminations in protectionist trade barriers. To address the welfare eects of trade cost reductions in a context of `trade and the environment,' we develop a two-stage game model where governments choose environmental and trade policies and rms play a Cournot-Nash game. We show that reductions in transport costs lead to lower emission taxes and higher taris. And, we nd that the degree of pollution damage plays a central role in whether market integration is welfare-improving relative to autarky. |
| Keywords: | market integration, oligopoly, pollution tax, tariff, gains/losses from trade |
| JEL: | F12 F18 L13 Q56 |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:kgu:wpaper:61&r=env |
| By: | Davis, Junior; Tan, Celine |
| Abstract: | This paper considers the challenges confronting LDCs in meeting the adaptation and mitigation requirements brought on by the climate crisis and addresses the question as to whether the Least Developed Country Fund (LDCF), which is a key source of LDC climate adaptation finance, is still fit for purpose? |
| Keywords: | climate change; least developed countries; climate finance; adaptation; mitigation; sustainable development |
| JEL: | Q56 Q01 Q54 |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:26581&r=env |
| By: | Dasgupta, Susmita; Huq, Mainul; Khan, Zahirul Huq; Masud, Md. Sohel; Ahmed, Manjur Murshed Zahid; Mukherjee, Nandan; Pandey, Kiran |
| Abstract: | Two-thirds of Bangladesh is less than 5 meters above sea level, making it one of the most flood prone countries in the world. Severe flooding during a monsoon causes significant damage to crops and property, with severe adverse impacts on rural livelihoods. Future climate change seems likely to increase the destructive power of monsoon floods. This paper examines the potential cost of offsetting increased flooding risk from climate change, based on simulations from a climate model of extreme floods out to 2050. Using the 1998 flood as a benchmark for evaluating additional protection measures, the authors calculate conservatively that necessary capital investments out to 2050 would total US$2,671 million (at 2009 prices) to protect roads and railways, river embankments surrounding agricultural lands, and drainage systems and erosion control measures for major towns. With gradual climate change, however, required investments would be phased. Beyond these capital-intensive investments, improved policies, planning and institutions are essential to ensure that such investments are used correctly and yield the expected benefits. Particular attention is needed to the robustness of benefits from large-scale fixed capital investments. Investments in increased understanding of risk-mitigation options and in economic mobility will have especially high returns. |
| Keywords: | Hazard Risk Management,Transport Economics Policy&Planning,Climate Change Mitigation and Green House Gases,Science of Climate Change,Climate Change Economics |
| Date: | 2010–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5469&r=env |
| By: | DUMORTIER, JEROME; HAYES, DERMOT J.; CARRIQUIRY, MIGUEL; DONG, FENGXIA; DU, XIAODONG; Elobeid, Amani E.; Fabiosa, Jacinto F.; MULIK, KRANTI |
| Abstract: | We present a global agricultural greenhouse gas model that assesses emissions from land-use change. In addition to evaluating shifts in and out of crop production, we develop a pasture model to assess extensification and intensification of global livestock production based on herd size and stocking rate. We apply the model to a scenario that introduces a tax on me-thane emissions from cattle in the United States. The resulting expansion of pasture in the rest of the world leads to substantially higher emissions than without the tax. The yearly average emissions from the tax are 260 metric tons of CO2-equivalent. |
| Keywords: | Land-use change, greenhouse gas emissions, pasture expansion, pasture extensification, Land Economics/Use, Q15, Q17, Q18, Q54, |
| Date: | 2010–06–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iatr10:95944&r=env |
| By: | Jean-Philippe Boussemart (LEM-CNRS (UMR 8179), IÉSEG School of Management); Hervé Leleu (CNRS-LEM (UMR 8179), IÉSEG School of Management); Oluwaseun Ojo (CNRS-LEM (UMR 8179), IÉSEG School of Management) |
| Keywords: | pesticide, cost, efficiency, agriculture, environmental performance, Free Disposal Hull |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ies:wpaper:e201005&r=env |
| By: | Anja Kollmuss; Michael Lazarus |
| Abstract: | In recent years, businesses, local governments and individuals have set goals for reducing their emissions of greenhouse gases. In addition to directly reducing their own emissions, many of these entities have purchased carbon offsets to help achieve their mitigation goals. Yet establishing offset quality can be difficult, due to issues such as additionality, measurement, leakage, permanence, and verification. This paper explores scenarios under which, as an alternative to offsets, voluntary buyers could instead buy and cancel allowances from compliance markets. The purchase and cancellation of allowances reduces the available allowances in a cap-and-trade system, “tightening the cap” and, in principle, reducing the emissions that can be produced by covered sources. By this logic, purchasing and cancelling an allowance compels covered sources to achieve additional mitigation. Opportunities for voluntary buyers to purchase and cancel tradable compliance units currently exist in several markets, but in small quantities. If the practice of cancelling allowances remains limited to individuals and voluntary corporate buyers, it is likely to remain small and is unlikely to send a strong price signal. In the medium and long-term this might change if large numbers of sub-national actors came into play and chose to cancel allowances.<BR>Depuis quelques années, des entreprises, des collectivités locales et des particuliers s’attachent à ramener leurs émissions de gaz à effet de serre à un niveau donné. Indépendamment de la réduction directe des quantités qu’elles émettent, beaucoup de ces entités ont acquis des crédits de compensation carbone pour contribuer à la réalisation de leurs objectifs d’atténuation. Toutefois, la réalité de la compensation peut être difficile à établir, compte tenu des problèmes d’additionnalité, de mesure, de fuite, de permanence et de vérification. Ce document porte sur des scénarios selon lesquels, à la place des formules de compensation, les acteurs volontaires pourraient acheter des quotas sur le marché réglementé du carbone puis les annuler. L’achat et l’annulation de quotas reviennent à diminuer les quotas disponibles dans un système de plafonnement et d’échange, puisqu’il s’agit d’« abaisser le plafond » et, en principe, de réduire les émissions susceptibles d’être produites par les sources prises en compte. Logiquement, l’achat et l’annulation d’un quota obligent les sources en question à aller plus loin dans l’atténuation. Des possibilités d’achat et d’annulation d’unités négociables s’offrent actuellement aux acquéreurs volontaires sur plusieurs marchés, mais les quantités sont peu importantes. Si la pratique de l’annulation de quotas demeure limitée à des acteurs isolés et à des entreprises volontaires, elle n’a guère de chances d’envoyer un signal de prix fort. À moyen et long termes, la situation pourra évoluer si un grand nombre de collectivités infranationales entrent en jeu et décident d’annuler des quotas. |
| Keywords: | climate change, emissions trading systems, changement climatique, système d’échange de droits d’émissions |
| JEL: | Q54 Q58 |
| Date: | 2010–08–04 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:21-en&r=env |
| By: | Stef Proost; Kurt Van Dender |
| Abstract: | A brief review of long run projections of demand for road transport suggests that problems related to road network congestion and greenhouse gas emissions are likely to become more pressing than they are now. Hence we review, from a macroscopic perspective, popular policy measures to address these problems: stimulating modal shift, regulating land use to reduce car use, and boosting low carbon technology adoption to reduce greenhouse gas emissions. We find that these policies can produce tangible results, but that they may have unintended consequences that drive up costs considerably. |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:oec:itfaaa:2010/14-en&r=env |
| By: | Halkos, George |
| Abstract: | Most of scientific research on Greenhouse Gases (GHG) focuses on CO2 emissions. But non-CO2 gases (mainly F-gases in the form of HFCs, PFCs, and SF6) are more potent at trapping heat within the atmosphere. Currently, F-gases constitute a small proportion of GHG emissions but they are extremely high Global Warming Potential gases. At the same time, they are expected to increase massively due to the expansion of some emitting industries, while the atmospheric lifetimes of PFCs and SF6 are very long. This study analyzes the economic and technical assumptions in abatement cost calculation in the case of the F-gases. The important factors for differences among countries in average mitigation costs are discussed and the least cost curve of F-gases control for the EU-27 and for the year 2020 is derived. It seems that it is more cost-effective to start abating SF6 first, and then moving to PFCs and then applying control methods to HFCs. |
| Keywords: | F-gases; control methods; emissions; GWP |
| JEL: | Q00 L95 Q53 L52 Q01 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:26532&r=env |
| By: | Aisbett, Emma; Kragt, Marit |
| Abstract: | There is an ongoing policy debate regarding both how much government intervention there should be to protect ecosystems affected by agriculture, and how the costs of these interventions should be distributed across different interest groups. In accordance with the policy focus in most countries, the majority of the valuation literature on ecosystem services and agriculture estimates the benefits that managed agricultural landscapes can provide to the rest of society. We argue, however, that the efficiency and equity of policies for ecosystem services related to agriculture can be further enhanced by understanding the value and sources of ecosystem services that agricultural production receives. With this in mind, we survey studies and techniques for estimating the value of ecosystem services to agricultural production. |
| Keywords: | Agricultural and Food Policy, Environmental Economics and Policy, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eerhrr:96385&r=env |
| By: | John Rolfe (Faculty of Business and Informatics at Central Queensland University); Jill Windle (Faculty of Business and Informatics at Central Queensland University) |
| 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. |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:een:eenhrr:1069&r=env |
| By: | Rolfe, John; Windle, Jill |
| Abstract: | The Great Barrier Reef (GBR) is a vast iconic environmental asset covering an area of approximately 35 million hectares. It is valued by people all over Australia, as well as overseas. Non-market values for the GBR will comprise both use and non-use values. The values of people who live closer to the GBR and who can visit it more frequently are likely to be higher than those who live further away. The aim of this study was to estimate the values to protect the health of the GBR at the national level and to examine the effects of distance decay on valuation estimates. A split-sample choice-modelling experiment was conducted in six locations: a regional town within the GBR catchment area (Townsville); Brisbane, the state capital approximately 450 km from the southern limit of the GBR; and four other capital cities (Sydney, Melbourne, Adelaide and Perth) ranging from 730 km to over 3600 km from Brisbane. The results indicate that the total national value for a 1 per cent improvement in the health of the GBR ranges from between a low of approximately $433.6 million to a high of $811.3 million, depending on the underlying assumptions made. There was some evidence of distance decay in values. Most decline occurred once outside the home state, and little further decline once away from the east coast. There was no evidence to suggest any difference in patterns of use and non-use values. The values of the potential future users were most influential in determining WTP estimates. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eerhrr:96384&r=env |
| By: | Burnett, J. Wesley; Ferrer, Myra Clarisse R. |
| Abstract: | Agricultural production is highly dependent on inorganic substances including fertilizers. High-yielding crop varieties, such as corn, require large amounts of primary nutrients including nitrogen, phosphorus and potassium. Farmers often add a surplus of nutrients to crops to maximize yields. Utilization of primary nutrients has increased by more than 300% while that of nitrogen alone has increased by more than 600% between 1960 and 2007 (USDA, 2009). From 1964 to 2007, the use of nitrogen in the corn sector alone increased from 1,623,000 to 5,714,000 nutrient tons (USDA, 2009). While increasing production, increased fertilizer use can potentially create negative externalities in the form of nitrate-nitrogen contamination in groundwater. Groundwater is the source of drinking water for about half the total U.S. population and nearly all of the rural population, and it provides over 50 billion gallons per day for agricultural needs (USGS, 2009). In the U.S. the main source of nitrate pollution in the groundwater results from the actions of farmers through the use of fertilizers and other chemicals (Haller, et al. 2009). Nitrogen-nitrate contamination can have adverse human affects including methemoglobinemia or âblue-babyâ syndrome (Majumdar, 2003). The potential for nitrate contamination in corn production is especially problematic as corn alone accounts for over 90% of feed grains produced in the U.S. (USDA, 2009). The USDA estimates that approximately 80 million acres of land is planted to corn, with the majority in the Heartland region (the Midwest) of the U.S. (2009). The Heartland region is primarily rural and much of the population there derives its drinking water from groundwater. Therefore, the potential for groundwater contamination is greatly increased in this region. |
| Keywords: | Environmental Economics, Nitrogen/Nitrate Contamination, Dynamic Optimization, Agriculture, Agricultural and Food Policy, Demand and Price Analysis, Environmental Economics and Policy, C61, C63, Q10, Q51, Q53, |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ugeofs:96032&r=env |
| By: | Fredrik Carlsson (Department of Economics, University of Gothenburg); Mitesh Kataria (Max Planck Institute of Economics, Jena); Alan Krupnick (Resources for the Future, Washington); Elina Lampi (Department of Economics, University of Gothenburg); Asa 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); Susie Chung (Resources for the Future, Washington) |
| Abstract: | Hypothetical bias is one of the main issues bedeviling the field of nonmarket valuation. The general criticism is that survey responses reflect how people would like to behave, rather than how they actually behave. In our study of climate change and emissions reductions, we took advantage of the increasing bulk of evidence from psychology and economics that addresses the effects of making promises, in order to investigate the effect of an oath script in a contingent valuation survey. The survey was conducted in Sweden and China, and its results indicate that an oath script has significant effects on respondent behavior in answering willingness-to-pay (WTP) questions, some of which vary by country. In both countries, the share of zero WTP responses and extremely high WTP responses decreases when an oath script is used, which also results in lower variance. In China, the oath script also reduces the average WTP, cutting it by half in certain instances. We also found that the oath script has different impacts on various respondent groups. For example, without the oath script, Communist party members in China are more likely than others to have a positive WTP for emissions reductions, but with the oath script, there is no longer any difference between the groups. |
| Keywords: | Oath script, hypothetical bias, willingness to pay |
| JEL: | D61 Q5 |
| Date: | 2010–11–09 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2010-076&r=env |
| By: | Clevo Wilson (QUT); Manel Jayamanna; Wasantha Athukorala (QUT) |
| Abstract: | This chapter examines why policy decision-makers opt for command and control environmental regulation despite the availability of a plethora of market-based instruments which are more efficient and cost-effective. Interestingly, Sri Lanka has adopted a wholly command and control system, during both the pre and post liberalisation economic policies. This chapter first examines the merits and demerits of command and control and market-based approaches and then looks at Sri Lanka’s extensive environmental regulatory framework. The chapter then examines the likely reasons as to why the country has gone down the path of inflexible regulatory measures and has become entrenched in them. The various hypotheses are discussed and empirical evidence is provided. The chapter also discusses the consequences of an environmentally slack economy and policy implications stemming from adopting a wholly regulatory approach. The chapter concludes with a discussion of the main results. |
| Keywords: | Command and control vs market-based instruments, Environmental and health effects, Economic analysis, Policy implications |
| JEL: | Q52 Q56 Q58 Q59 |
| Date: | 2010–07–30 |
| URL: | http://d.repec.org/n?u=RePEc:qut:dpaper:259&r=env |
| By: | Moeller, Thordis; Grethe, Harald |
| Keywords: | Crop Production/Industries, Food Consumption/Nutrition/Food Safety, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iatr10:95947&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. |
| Keywords: | individual adaptation; perceived risk; adaptation motivation; spatial-temporal distance; information; protection motivation theory |
| JEL: | D83 Q54 Q58 |
| Date: | 2010–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:26569&r=env |
| By: | Dina El Bassiouny (Faculty of Management Technology, The German University in Cairo); Ehab Mohamed (Faculty of Management Technology, The German University in Cairo) |
| Abstract: | In Egypt, electric energy coming from fossil fuels represents around 85% of total electricity requirements. However, the supply of energy in the Arab world is expected to run dry in the coming 30-50 years. With the increase in energy needs, rise in fossil fuel prices, and the swelling of green house gas emissions, the use of renewable and more environment-friendly energy sources to supply power is gaining increased attention. Being a country on the Sunbelt, Egypt has great potential in utilizing solar energy to generate energy products and electricity. However, solar energy is still abandoned in Egypt due to its high costs. This paper first aims to examine the relative significance of several accounting and economic related variables to reduce solar energy costs. To be more specific, the paper seeks to examine the effect of using accounting and finance-based factors, related to depreciation schemes and financing options, to decrease solar energy costs. These factors are considered as a substitute for direct subsidies which are difficult to implement because of the narrow financial scope of the Egyptian government. The results of the study provide a number of policy implications that can be applied to make solar energy closer to cost-competitiveness and contribute to solve the energy problem in Egypt. |
| Keywords: | Solar Energy, Cost Efficiency, Government Incentives |
| JEL: | Q48 Q42 |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:guc:wpaper:22&r=env |
| By: | Nerhagen, Lena (VTI); Li, Chuan-Zhong |
| Abstract: | Emissions from traffic impose negative effects on human health, and recent evidence indicates that particulate matters (PM) are the detrimental air pollutant that causes most life years lost. To improve the efficiency of resource allocation, various mitigation measures have been proposed for reducing these emissions. However, whether or not the policy instruments are welfare improving, and if yes, how much more efficient they can be remain to be studied. To answer the questions, we need to both assess the economic cost of emission control and the health benefit due to the reduced PM emission by all proposed control instruments. This paper focuses on the cost efficiency for reaching pre-determined emission targets. We are concerned with reducing the concentrations of PM in Stockholm by local policy measures. Contrary to other cost-efficiency studies we have in this study included adaptations in behaviour in addition to the conventional technical measures alone. <p> Since there are different emissions of PM, targeting PM10 may not be a good indicator of the health benefits. We therefore compare the performance of targeting PM and of targeting years of life lost (YOLL) and found interesting differences. We find that if the ultimate objective is to save lives or say life-years, it should be more appropriate to target YOLL, provided that YOLL can be properly predicted. Moreover, since the collected data on the effectiveness and cost of the policy instruments involve large uncertainty, we have employed a stochastic control model to explore the implications of the degree of uncertainty. We find that the higher fulfilment probability, the larger the marginal cost as expected. Also, for a given fulfilment probability, the more uncertain we are about the true effectiveness parameters, the larger the marginal costs. |
| Keywords: | emission control; cost-effective analysis; human health; uncertainty; stochastic control |
| JEL: | D62 |
| Date: | 2010–11–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:vtiwps:2010_010&r=env |
| By: | John Rolfe (Faculty of Business and Informatics at Central Queensland University); Jill Windle (Faculty of Business and Informatics at Central Queensland University) |
| Abstract: | The Great Barrier Reef (GBR) is a vast iconic environmental asset covering an area of approximately 35 million hectares and as such is valued by people all over Australia, as well as overseas. While non-market values for the GBR will comprise both use and non-use values, the values of people who live closer and who can visit the GBR more frequently, are likely to be higher than those who live further away in more distant locations. The aim of the study outlined in this report was to estimate the values to protect the health of the GBR at the national level, and in doing so, examine the effects of distance decay on valuation estimates. A split sample choice modelling experiment was conducted in six locations: a regional town within the GBR catchment area (Townsville); Brisbane, the state capital approximately 450 km from the southern limit of the GBR and four other capital cities (Sydney, Melbourne, Adelaide and Perth) ranging from 730 km to over 3600 km from Brisbane. The results indicate that the total national value for a 1% improvement in the health of the GBR ranges from between a low of approximately $433.6 million to a high of $811.3 million depending on the underlying assumptions made. There was some evidence of distance decay in values with most decline occurring once outside the home state, and little further decline occurring once away from the east coast. There was no evidence to suggest any difference in patterns of use and non use values but the values of the potential future users that were most influential in determining WTP estimates. |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:een:eenhrr:1072&r=env |
| By: | OECD |
| Abstract: | This paper provides evidence on and discussion of recent developments in global transport markets and analyzes what policies look most promising for stabilizing CO2- emissions from light-duty vehicles. In the aftermath of the economic crisis, recovery is uncertain and unevenly spread across the globe. This has potential impacts on global trade patterns and commodity flows, and hence on key freight transport flows. For the management of future greenhouse gas emissions from transport, our analysis strongly suggests that technologies to improve fuel economy and ultimately transform the energy basis of transport are the key, as there are very strong upward pressures on demand volumes. This of course does not mean that demand… |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:oec:itfaaa:2010/15-en&r=env |
| By: | Reinhard Madlener (Institute for Future Energy Consumer Needs and Behavior (FCN), RWTH Aachen University); Ilja Neustadt (Socioeconomic Institute, University of Zurich) |
| Abstract: | In a perfectly competitive market with a possibility of technological innovation we contrast guaranteed feed-in tariffs for electricity from renewables and tradable green certificates from a dynamic efficiency and social welfare point of view. Specifically, we model decisions about the technological innovation with convex costs within the framework of a game-theoretic model, and discuss implications for optimal policy design under different assumptions regarding regulatory pre-commitment. We find that for the case of technological innovation with convex costs subsidy policies are preferable over quota-based policies. Further, in terms of dynamic efficiency, no pre-commitment policies are shown to be at least as good as the pre-commitment ones. Thus, a government with a preference for innovation being performed if the achievable cost reduction is high should be in favor of the no pre-commitment regime. |
| Keywords: | Renewable electricity, Feed-in tariffs, Regulatory pre-commitment, Tradable green certificates, Quota target, Innovation, Energy policy |
| JEL: | Q42 Q48 |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:soz:wpaper:1010&r=env |
| By: | Ploeg, Frederick van der |
| Abstract: | For a country fractionalized in competing factions, each owning part of the stock of natural exhaustible resources, or with insecure property rights, we analyze how resources are transformed into productive capital to sustain consumption. We allow property rights to improve as the country transforms natural resources into capital. The ensuing power struggle about the control of resources is solved as a non-cooperative differential game. Prices of resources and depletion increase faster than suggested by the Hotelling rule, especially with many competing factions and less secure property rights. As a result, the country substitutes away from resources to capital too rapidly and invests more than predicted by the Hartwick rule. The power struggle boosts output but depresses aggregate consumption and welfare, especially in highly fractionalized countries with less secure property rights. Genuine saving evaluated with welfare-based accounting prices is zero in this game, but biased upwards if calculated with the lower market prices. |
| JEL: | Q01 E20 O13 Q32 F32 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ner:oxford:http://economics.ouls.ox.ac.uk/14978/&r=env |
| By: | Emma Aisbett (Crawford School of Economics and Government, The Australian National University); Marit Kragt (School of Agricultural and Resource Economics, The University of Western Australia, Perth, WA) |
| Abstract: | There is an ongoing policy debate regarding both how much government intervention there should be to protect ecosystems affected by agriculture, and how the costs of these interventions should be distributed across different interest groups. In accordance with the policy focus in most countries, the majority of the valuation literature on ecosystem services and agriculture estimates the benefits that managed agricultural landscapes can provide to the rest of society. We argue, however, that the efficiency and equity of policies for ecosystem services related to agriculture can be further enhanced by understanding the value and sources of ecosystem services that agricultural production receives. With this in mind, we survey studies and techniques for estimating the value of ecosystem services to agricultural production. |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:een:eenhrr:1073&r=env |
| By: | Nerhagen, Lena (VTI); Bergström, Robert; Forsberg, Bertil; Johansson, Christer; Eneroth, Kristina |
| Abstract: | This paper measures the external health cost due to emissions from different sources in the Stockholm area using the Impact pathway approach. The estimated health impact is the result of detailed dispersion modelling with high spatial resolution. We make separate calculations for the impact that occur within the Stockholm area, the surrounding region and the rest of Europe. The pollutants considered are combustion and secondary particulate matter (PM) from the burning of fuels and also road wear (non-exhaust PM) that makes a large contribution to measured concentrations of PM locally in Stockholm. We also investigate the influence of assumptions made regarding the exposure-response functions used in these calculations since PM of different origin are expected to have different health impacts. According to the results road traffic makes important contributions to the external health cost both on a local and a regional scale compared to other sources. This is in part due to emissions being released in close proximity to where people live but also because of the amount of pollutants emitted. Although non-exhaust PM makes a large contribution to local population exposure within Stockholm the external health cost is relatively small which is due to other health impact being relevant for this emission source. Residential heating also makes an important contribution to exposure and external health cost on a local scale while power plants have a large influence regionally. |
| Keywords: | Health cost; particulate matter; dispersion modelling; exposure-response functions; value of life year lost |
| JEL: | D62 |
| Date: | 2010–11–10 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:vtiwps:2010_009&r=env |
| By: | Annabelle Mourougane |
| Abstract: | The oil price hike in 2007-08 underlined the vulnerability of Indonesia’s energy subsidy policy to oil price volatility. In addition to entailing significant economic and environmental costs, energy subsidies put pressure on the public budget and benefit mostly rich households. Phasing them out would benefit both the economy and the environment. At the same time, past experience in Indonesia and elsewhere suggests that such a reform is likely to face stiff opposition and will therefore need to be carefully designed and communicated. Compensation in the form of targeted cash transfers will help to shield low-income households from attendant rise in energy prices. This Working Paper relates to the 2010 OECD Economic Review of Indonesia (www.oecd.org/eco/surveys/Indonesia).<P>Éliminer progressivement les subventions à l’énergie en l’Indonésie<BR>La flambée des prix du pétrole de 2007-08 a montré que la politique de subventions à l’énergie de l’Indonésie était sensible à la volatilité des prix du pétrole. En plus d’entraîner des coûts économiques et environnementaux importants, les subventions à l’énergie pèsent sur les finances publiques et profitent essentiellement aux ménages aisés. Leur suppression progressive aurait donc des effets positifs sur l’économie comme sur l’environnement. Toutefois, l’expérience de l’Indonésie et d’autres pays montre qu’une telle réforme risque de rencontrer une vive opposition et qu’il importe donc d’accorder une grande attention à la façon dont elle est conçue et expliquée. Des mécanismes de compensation sous forme de transferts monétaires ciblés contribueront à protéger les ménages à faible revenu de la hausse des prix de l’énergie induite par la réforme. Ce Document de travail se rapporte à l’Étude économique de l’OCDE de l’Indonésie 2010 (www.oecd.org/eco/etudes/Indonesie). |
| Keywords: | Indonesia, biofuels, energy subsidies, bio-carburants, Indonésie, subventions d'énergie |
| Date: | 2010–10–26 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:808-en&r=env |
| By: | Jane Korinek; Jeonghoi Kim |
| Abstract: | Barriers to trade come in a variety of forms. This paper examines one such barrier, export restrictions, and how it impacts trade and global supply in selected strategic metals and minerals. The metals and minerals examined in the paper are of particular interest for a number of reasons: they are generally geographically concentrated in a few countries, many are used in the production of high-technology goods in strategic sectors and there are few substitutes for these raw materials given the present state of technology. For all these reasons, importing countries are dependent on a reliable supply of these raw materials. Export restrictions may be applied for a number of reasons: protection of the environment, preservation of natural resources, protection of downstream industries, or as a response to a number of different market imperfections. This paper examines the motivations for using export restrictions and finds varying impacts on trade and global supply. In one case, the export restrictions put into place did not fulfill their objective of environmental protection. In another, the presence of export restrictions in one country put pressure on other exporters to apply restrictions suggesting the potential for competitive policy practices in restricting exports. In a third case study, export restrictions were seen to impact investment decisions by potential suppliers worldwide by introducing an added element of risk in the industry. The impact of export restrictions on strategic metals and minerals are exacerbated in many cases because producing countries have a quasi-monopoly on supply. Since these metals and minerals are essential in the production of some high-technology products and are not easily replaceable in the medium term, industry participants in some importing countries are concerned about future access at sustainable prices. |
| Keywords: | trade policy, trade, quantitative restrictions, environmental technologies, Export restrictions, Strategic metals, Raw materials, Minerals Trade, Export taxes, Export duties, Export quotas, VAT Rebates, Export licensing, Trade policy instruments, Mineral reserves, geographical concentration, Natural resource preservation, Molybdenum, Chromite, Chromium, Rare Earths |
| Date: | 2010–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:oec:traaab:95-en&r=env |
| By: | Clevo Wilson (QUT) |
| Abstract: | The concept of sustainable finance is a relatively new concept that is increasingly accepted by the financial industry since the Berne Declaration came together to promote sustainable finance in the commercial sector. Although sustainable finance is very apt and timely, many issues need to be addressed if this concept is to be meaningful and it is to achieve its desired objectives. Some of the issues that need to be clarified and addressed include (1) defining the kind of sustainability that is envisaged (2) examining issues relating to the use of high discount rates and its compatibility with the goals of sustainability (3) the case of excessive pollution due to adverse selection, moral hazard and lobbying and (4) specialisation and path dependent systems that are detrimental to future production. This paper discusses these issues, providing examples from pollution and biodiversity degradation. The paper also shows why economic growth without considering pollution impacts and path dependent systems is detrimental to future production which violates the concept of sustainable finance. This discussion demonstrates why the concept of sustainable finance is timely and why it is necessary to take into account the potential issues that need to be addressed. The challenges that lie ahead are many, and the sooner they are addressed, the more credible and potent sustainable finance will be. |
| Keywords: | Sustainable finance, economic growth, pollution, biodiversity degradation, path dependent systems |
| JEL: | Q56 Q57 Q58 Q59 O16 |
| Date: | 2010–07–30 |
| URL: | http://d.repec.org/n?u=RePEc:qut:dpaper:260&r=env |
| By: | C.M Drouvot (CERAG - Centre d'études et de recherches appliquées à la gestion - CNRS : UMR5820 - Université Pierre Mendès-France - Grenoble II); H. Drouvot (CERAG - Centre d'études et de recherches appliquées à la gestion - CNRS : UMR5820 - Université Pierre Mendès-France - Grenoble II); P.M Perluss (IAE de Grenoble - IAE de Grenoble) |
| Abstract: | This article depicts the improvement in living conditions for those families of peasants (the “landless peasants”) who have benefited from agrarian reform (termed “assentamentos” i.e. homesteads) through the creation of farming cooperatives. The farming cooperative examined herein was supported by the Petrobas group following the guidelines of the Brazilian National Biofuels Program. This program seeks to foster biofuels production among peasant farmers in Brazil's semi arid regions. The present research project comprises a field study which describes the aforesaid program's evolution and, more critically, ascertains the conditions requisite for success. Several crucial conditions stand forth: 1) First, convincing peasants to join the project; in this regard, a charismatic leader sharing the same social origins as the farming families has played a major role in gaining their confidence. 2) Second, developing a coherent set of value-adding activities that incorporate a range of by-products and waste products (from sunflower crops grown for biofuels, a number of corollary activities have arisen: honey, animal feed and fish farming). 3) Finally Petrobas's essential role as a partially state-owned corporation which has implemented a policy of social and environmental responsibility (assigning of a full-time engineer to oversee the project, providing farm equipment rentals needed for the crops as well as paying the salaries for two agronomic technicians working for the cooperative) |
| Keywords: | biofuel ; family-based farming ; cooperatives ; social and environmental responsibility ; social inclusion |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00534811_v1&r=env |
| By: | Clovis Zapata (International Policy Centre for Inclusive Growth); Diego Vazquez-Brust (ESRC Centre for Business Relationships, Accountability, Sustainability and Society, Cardiff University); José Plaza-Úbeda (University of Almeria) |
| Abstract: | One of the principal challenges in sustainable development, especially in developing countries, is to build institutions that generate positive environmental and social externalities by helping individuals to perceive a positive relationship between self-interest and ?the common good?. Collective engagement can enable individuals to overcome self-interestedness and work toward shared goals, but ?getting the institutions right? requires an understanding of how the particular set of market and non-market relationships really work for participants. In the context of the biodiesel value chain in Brazil, this paper explores how institutional arrangements need to evolve if they are to foster the productive and sustained inclusion of small farmers and promote sustainable innovation as a regional economic development strategy, one that helps reduce social vulnerability without increasing environmental risks. The paper uses the institutional analysis and design (IAD) framework, which looks at how actors are involved in repetitive situations affected by a biophysical world, a cultural world and a set of rules, in order to understand how different institutional structures can accommodate the power of both internal and exogenous forces that shape the trajectory of sustainable innovation. After a general overview of stakeholders and policy instruments in the biodiesel programme, the paper provides a brief institutional analysis of the interaction between actors and processes, with a view to offering insights into the current effectiveness of the programme as a sustainable rural development tool. (...) |
| Keywords: | Productive Inclusion of Smallholder Farmers in Brazil?s Biodiesel Value Chain: Programme Design, Institutional Incentives and Stakeholder Constraints |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ipc:wpaper:73&r=env |
| By: | J. Alapetite (CERAG - Centre d'études et de recherches appliquées à la gestion - CNRS : UMR5820 - Université Pierre Mendès-France - Grenoble II) |
| Abstract: | Ecological footprint is good at telling us how much we weight relative to global ecological ressources. However it tells us nothing on their geographical origin and makes no distinction be-tween ecological ressources used from distant or local land. Moreover it does not measure theintensity of exploitation of soils or other sustainability considerations like biodiversity loss. There-fore the results provided by the footprint calculation are barely suitable for planning and policydesign, as information on real use of local land is lost in the process of calculation. This issuesare well known and are part of the research agenda set by the footprint research community andrecommendations has been made to deal with them. The research community already use various metrics to compute the ecological footprint: global hectares, actual hectares and disturbed hectares. The increasing use of input-output technics has also enhanced the localization of the footprint. In this paper all the metrics are used in conjunction with input-output techniques to produce four ecological performance indicators of a local economy taking in account: its global weight on the planet, its degree of dependence on distant ecological ressources, the sustainability of its farming practices, and the quantity of local fertile land not yet used in a bioproductive way. This four performance indicators are then plotted together giving an easy visualizing tool to compare various alternative scenarios |
| Keywords: | Benchmarking ; local ; ecological performance ; footprint accounts |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00534750_v1&r=env |
| By: | Pradeep Kumar Panda |
| Abstract: | This paper investigates the effects of safe drinking water and sanitation on diarrhoeal diseases among children in rural Orissa. [Working Paer No. 278] |
| Keywords: | water supply, sanitation, childhood, diarrhoea, health policy, common property resource, child survival |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:3160&r=env |