nep-env New Economics Papers
on Environmental Economics
Issue of 2011‒05‒14
fifty-six papers chosen by
Francisco S.Ramos
Federal University of Pernambuco

  1. International Environmental Agreements in the Presence of Adaptation By Walid Marrouch; Amrita Ray Chaudhuri
  2. Environmental Security and its Implications for China’s Foreign Relations By Junko Mochizuki; ZhongXiang Zhang
  3. Atmospheric Externalities and Environmental Taxation. By Sandmo, Agnar
  4. Energy Efficiency, Rebound Effects and the Environmental Kuznets Curve By Hanley, Nick; Turner, Karen
  5. Efficiency, Productivity and Environmental Policy: A Case Study of Power Generation in the EU By Jurate Jaraite; Corrado Di Maria
  6. Sustainable growth in a model with dual-rate discounting By Kirill Borissov; Kirill Shakhnov
  7. How to Measure Carbon Equity: Carbon Gini Index Based on Historical Cumulative Emission Per Capita By Teng Fei; He Jiankun; Pan Xunzhang
  8. Climate Change, Employment and Local Development in London, UK By Gabriela Miranda; Mads Greaker; Kris Krasnowski; Bettina Schaefer; Andy Westwood
  9. Abatement Technology and the Environment-Growth Nexus with Education By Xavier Pautrel
  10. Energy and Climate Change in China By Carlo Carraro; Emanuele Massetti
  11. Input-output analyses of the pollution content of intra- and inter-national trade flows By Cui, Cathy Xin; Ha, Soo Jung; Hewings, Geoffrey; Turner, Karen
  12. Financial Contracts and the Management of Carbon Emissions in Small Scale Plantation Forests By Andrew Coleman
  13. A Tale of Two Countries: Emissions Scenarios for China and India By Emanuele Massetti
  14. Spillovers and Taxes: What Drives Strategic Competition in Environmental Policies? By B. Andrew Chupp
  15. How responsible is a region for its carbon emissions? An integrated input-output and CGE analysis By McGregor, P. G. (Peter Gregor); Munday, Max; Swales, J. Kim; Turner, Karen
  16. Does the Kyoto Protocol Agreement matters? An environmental efficiency analysis By Halkos, George; Tzeremes, Nickolaos
  17. Effective Environmental Protection in the Context of Government Decentralization By ZhongXiang Zhang
  18. Choice Experiments in Enviromental Impact Assessment: The Toro 3 Hydroelectric Project and the Recreo Verde Tourist Center in Costa Rica By Carías Vega , Dora; Alpízar, Francisco
  19. Health Impacts of Power-Exporting Plants in Northern Mexico By Blackman, Allen; Chandru, Santosh; Mendoza-Dominguez, Alberto; Russell, A.G.
  20. Health Impacts of Power-Exporting Plants in Northern Mexico By Blackman, Allen; Chandru, Santosh; Mendoza-Domínguez, Alberto; Russell, A.G.
  21. Leading by Example to Protect the Environment; Do the Costs of Leading Matter? By Heijden, E.C.M. van der; Moxnes, E.
  22. Remanufacturing. By Sophie Bernard
  23. Environmental Regulations, Market Structure and Technological Progress in Renewable Energy Technology — A Panel Data Study on Wind Turbines By Dirk Rübbelke; Pia Weiss
  24. Optimal Exploitation of Groundwater and the Potential for a Tradable Permit System in Irrigated Agriculture By Dionysis Latinopoulos; Eftichios Sartzetakis
  25. Is There an Optimal Entry Time for Carbon Capture and Storage? A Case Study for Australia's National Electricity Market By Liam Wagner; John Foster
  26. Is European climate policy the new CAP? By Georg Zachmann
  27. Structural decomposition analysis of greenhouse gas emissions: Application to the Aquitaine region (In French) By Jean-Christophe MARTIN (GREThA); Stéphane BECUWE (GREThA)
  28. On the Move Livelihood Strategies in Northern Ghana By Francesca MARCHETTA
  29. Corruption and Environmental Policy: An Alternative Perspective By Athanasios Lapatinas; Anastasia Litina; Eftichios S. Sartzetakis
  30. Green Jobs Strategy and the Transition to the Low-Carbon Economy in Northern Virginia By Peter Garforth; Dale Medearis
  31. Climate Change, Employment and Local Development in Extremadura, Spain By Gabriela Miranda; Hyoung-Woo Chung; David Gibbs; Richard Howard; Lisa Rustico
  32. Pollution Control: When, and How, to be Precautious By Stergios Athanassoglou; Anastasios Xepapadeas
  33. Technical Efficiency, Environment Efficiency, Productivity and Beneficial Management Practices By Lota D., Tamini; Bruno, Larue; West, Gale E.
  34. Implementing steady state efficiency in overlapping generations economies with environmental externalities. By Nguyen Thang Dao; Julio Dávila
  35. Five feet high and rising : cities and flooding in the 21st century By Jha, Abhas; Lamond, Jessica; Bloch, Robin; Bhattacharya, Namrata; Lopez, Ana; Papachristodoulou, Nikolaos; Bird, Alan; Proverbs, David; Davies, John; Barker, Robert
  36. Environmental Innovations, Local Networks and Internationalization By Giulio Cainelli; Massimiliano Mazzanti; Sandro Montresor
  37. Was Tsunami Aid Well Targeted? An Examination of Disaster Assistance in Sri Lanka By South Asian Network for Development SANDEE
  38. Technological Advance in Cooling Systems at U.S. Power Plants By Bellas, Allen S.; Finney, Duane; Lange, Ian
  39. Poverty and climate change in urban Bangladesh (CLIMURB): an analytical framework By Manoj Roy; Simon Guy; David Hulme; Ferdous Jahan
  40. Global Warming and the Population Externality By Stuart, Charles
  41. Foretelling the Mekong: Key Findings of the MRC’s Strategic Environmental Assessment on Mekong Mainstream Dams By International Rivers Network IRN
  42. Climate Change and Food Security to 2030: A Global Economy-wide Perspective By Ernesto Valenzuela; Kym Anderson
  43. Economic and Distributional Impacts of Biofuels in Mali By Dorothée Boccanfuso; Massa Coulibaly; Govinda R. Timilsina; Luc Savard
  44. Managing Common Pool Resources for Poverty Reduction in Tribal Areas of Eastern India By R S Deshpande; D K Marothia; Khalil Shah
  45. Emissions Targets and the Real Business Cycle: Intensity Targets versus Caps or Taxes By Fischer, Carolyn; Springborn, Michael R.
  46. Market Equilibrium in the Presence of Green Consumers and Responsible Firms: A Comparative Statics Analysis By Nicola Doni; Giorgio Ricchiuti
  47. Hazardous Activities and Civil Strict Liability: The Regulator’s Dilemma By Gérard Mondello
  49. Biofuel Subsidies and International Trade By Bandyopadhyay, Subhayu; Bhaumik, Sumon; Wall, Howard
  50. Socio-Economic and Ecological Benefits of Mangrove Plantation: A Study of Community Based Mangrove Restoration Activities in Gujarat By P.K. Viswanathan; Ila Mehta; Kinjal D Pathak
  51. A Dynamic Approach to the Environmental Effects of Trade Liberalization By M. Fadaee
  52. The Value of Secure Property Rights: Evidence from Global Fisheries By Corbett A. Grainger; Christopher Costello
  53. Civil Liability, Safety and Nuclear Parks: Is Concentrated Management Better? By Gérard Mondello
  54. Find Me the Money: Financing Climate and Other Global Public Goods By Nancy Birdsall; Benjamin Leo
  55. Van Panchayats in Three Villages: Dependency and Access By Chandana Anusha; Devika Narayan; Tanya Matthan
  56. Community Management is Good for Forests: Results from a Field Experiment in India By South Asian Network for Development SANDEE

  1. By: Walid Marrouch (Lebanese American University, School of Business, Department of Economics and Finance, CIRANO (Center for Interuniversity Research and Analysis on Organizations)); Amrita Ray Chaudhuri (Department of Economics, CentER, TILEC, Tilburg University, Department of Economics, The University of Winnipeg)
    Abstract: We show that adaptive measures undertaken by countries in the face of climate change, apart from directly reducing the damage caused by climate change, may also indirectly mitigate greenhouse gas emissions by increasing the stable size of international agreements on emission reductions. Moreover, we show that the more effective the adaptive measure in terms of reducing the marginal damage from emissions, the larger the stable size of the international environmental agreement. In addition, we show that larger coalitions, in the presence of adaptation, may lead to lower global emission levels and higher welfare.
    Keywords: International Environmental Agreements, Adaptation, Coalition Formation, Climate Change
    JEL: Q54 Q59
    Date: 2011–04
  2. By: Junko Mochizuki (Department of Natural Resources and Environmental Management, University of Hawaii at Manoa); ZhongXiang Zhang (East-West Center)
    Abstract: China’s emerging standing in the world demands a major rethinking of its diplomatic strategies. Given its population size, geographical scale, economic power and military presence, China is poised to play a larger political role in the twenty-first century, and is thus perceived by the international community to have greater capacities, capabilities and responsibilities. At the same time, environmental stresses caused by China’s energy and resources demands have become increasingly evident in recent years, urging China to cultivate delicate diplomatic relations with its neighbors and strategic partners. Tensions have been seen in areas such as transboundary air pollution, cross-border water resources management and resources exploitation, and more recently in global issues such as climate change. As the Chinese leadership begins to embrace the identity of a responsible developing country, it is becoming apparent that while unabated resources demands and environmental deterioration may pose a great threat to environmental security, a shared sense of urgency could foster enhanced cooperation. For China to move beyond existing and probable diplomatic tensions, a greater attention to domestic and regional environmental security will no doubt be necessary. This article explores such interrelations among domestic, regional and global environmental securities and China’s diplomacy, and suggests possible means by which China could contribute to strengthening global environmental security.
    Keywords: Acid Rain, Climate Change, Energy, Environmental Security, Transboundary Air Pollution, Water Resource Management, Asia
    JEL: Q25 Q34 Q48 Q42 Q53 Q54 Q56 Q58 O13 P28
    Date: 2011–03
  3. By: Sandmo, Agnar (Dept. of Economics, Norwegian School of Economics and Business Administration)
    Abstract: The paper reviews the theory of environmental taxation under first best and second best conditions. It argues that negative environmental externalities lead to reductions of the provision of public goods, while investment in abatement increases the supply of public goods. Together with optimal tax rules, the paper therefore also derives conditions for the optimal use of resources on abatement. After brief discussions of the dimensions of time and uncertainty, tax reform and the double dividend, and taxes versus quotas, the optimal tax model is applied to the problem of global warming with a discussion of the particular incentive problems that arise in designing and implementing global climate policy.
    Keywords: Environmental taxation; Public goods
    JEL: D60 H41 H87
    Date: 2010–09–10
  4. By: Hanley, Nick; Turner, Karen
    Abstract: Technological change is one factor used to justify the existence of an Environmental Kuznets Curve, and technological improvements have been argued to be a key factor in mitigating the impacts of economic growth on environmental quality. In this paper we use a CGE model of the Scottish economy to consider the factors influencing the impacts of one form of technological change - improvements in energy efficiency - on absolute levels of CO2 emissions, on the carbon intensity of the economy (CO2 emissions relative to real GDP), and the per capita EKC relationship. These factors include the elasticity of substitution between energy and non-energy inputs, responses in the labour market and the structure of the economy. Our results demonstrate the key role played by the general equilibrium price elasticity of demand for energy, and the relative influence of different factors on this parameter.
    Keywords: Environmental Kuznets Curve; rebound effects; energy efficiency; technical progress; computable general equilibrium models
    Date: 2010–12
  5. By: Jurate Jaraite (CERE, Umeå University); Corrado Di Maria (Queen’s University Belfast)
    Abstract: This study uses the EU public power generating sector as a case study to investigate the environmental efficiency and productivity enhancing performance of the European Union’s CO2 Emissions Trading Scheme (EU ETS) in its pilot phase. Using Data Envelopment Analysis methods, we measure the environmental efficiency and the productivity growth registered in public power generation across the EU over the 1996-2007 period. In the second stage of our analysis we attempt to explain changes in productivity and efficiency over time using state-of-the-art econometric techniques. Our analysis suggests two conclusions: on the one hand carbon pricing led to an increase in environmental efficiency and to a shift outwards of the technological frontier; on the other hand, the overly generous allocation of emission permits had a negative impact on both measures. These results are shown to be robust to changes in controls and specifications.
    Keywords: Emissions Trading, EU ETS, Environmental Efficiency, Productivity Growth, Data Envelopment Analysis
    JEL: O38 Q48 Q58
    Date: 2011–02
  6. By: Kirill Borissov; Kirill Shakhnov (Department of Economics, European University Institute)
    Abstract: In an important model of growth and pollution proposed by Stokey [Int. Econ. Rev. 39 (1998) 1] neither the rate of economic growth nor the rate of growth of emissions depends on the time preference of the representative agent, which seems somewhat paradoxical. To resolve this paradox, we introduce into Stokey's model the assumption of dual-rate discounting, prove the existence of a sustainable balanced growth optimal path, and show that the growth rates of output and emissions are increasing in the proportion between the consumption and the environmental discount factors of the representative agent.
    Keywords: growth, pollution, discounting
    JEL: C61
    Date: 2011–03–07
  7. By: Teng Fei (Institute of Energy, Environment and Economy, Tsinghua University); He Jiankun (Institute of Energy, Environment and Economy, Tsinghua University); Pan Xunzhang (Institute of Energy, Environment and Economy, Tsinghua University)
    Abstract: This paper uses Lorenz Curve and Gini Index with adjustment to per capita historical cumulative emission and constructs Carbon Gini Index to measure inequality in climate change area. The analysis using Carbon Gini Index shows that 70% of carbon space in the atmosphere has been used for unequal distribution, which is almost the same as that of income in the country with the biggest gap between rich and poor in the world. The carbon equity should be an urgency and priority in the climate agenda. Carbon Gini Index established in this paper can be used to measure inequality in the distribution of carbon space and provide a quantified indicator for measurement of carbon equity among different proposals.
    Keywords: Climate Change, Carbon Equity, Long-term Mitigation Goal, Cumulative Emission Per Capita, Carbon Gini Index
    JEL: Q56 D63
    Date: 2011–04
  8. By: Gabriela Miranda; Mads Greaker; Kris Krasnowski; Bettina Schaefer; Andy Westwood
    Abstract: London and the UK are far from immune from the impacts of climate change. The UK is already experiencing the effects of climate change in the form of increased sea-surface temperature and rising sea levels. If global GHG emissions continue unabated, London in particular, will be vulnerable to floods, droughts and heat waves. <p> To achieve ambitious emission-cutting targets, the Mayor of London has developed a range of programmes that will stimulate demand for the low-carbon economy in London. However, some challenges still need to be addressed in order to ensure that enough jobs will be created and that those jobs created in the low-carbon economy will be accessible for Londoners. <p> This report examines the impacts of climate change (including through its effect on policy and regulations) on the London labour markets, with a focus on the creation of jobs and the development of a skilled workforce to meet the needs of the greener economy. The report also contains a set of policy recommendations for London to meet its ambitious low-carbon agenda while creating jobs.
    Date: 2011–04
  9. By: Xavier Pautrel (Université de Nantes, Laboratoire d’Économie et de Management de Nantes (LEMNA), Institut d’Économie et de Management de Nantes – IAE)
    Abstract: This article challenges the conventional result that a tighter environmental tax has no long-run effect on human capital accumulation in the presence of pollution arising from final output production. It demonstrates that the technology used in the abatement sector determines the existence and the direction of the growth-effect. A tighter environmental tax rises (respectively reduces) human capital accumulation in the presence of pollution arising from final production, if the abatement sector is relatively more intensive in human (resp. physical) capital than final sector. That result always holds for finite lifetime but for infinite lifetime it only holds when labor supply is endogenous. The transitional impact of a tighter environmental policy is also investigated.
    Keywords: Growth, Environment, Overlapping Generations, Human Capital, Abatement
    JEL: Q5 Q58
    Date: 2011–02
  10. By: Carlo Carraro (University of Venice and Fondazione Eni Enrico Mattei); Emanuele Massetti (Fondazione Eni Enrico Mattei and Euro-Mediterranean Centre for Climate Change)
    Abstract: The paper examines future energy and emissions scenarios in China, presenting historical data and scenarios generated using the Integrated Assessment Model WITCH. A Business-as-Usual scenario is compared with four scenarios in which Greenhouse Gases emissions are taxed, at different levels. Key insights are provided to evaluate the Chinese pledge to reduce the emissions intensity of Gross Domestic Product by 40/45 percent in 2020 contained in the Copenhagen Accord. Marginal and total abatement costs are discussed using the OECD economies as a term of comparison. Cost estimates for different emissions reduction targets are used to assess the political feasibility of the 50 percent global reduction target set by the G8 and Major Economies Forum in July 2009.
    Keywords: Climate Change, China, Energy Efficiency, Energy and Development
    JEL: Q4
    Date: 2011–02
  11. By: Cui, Cathy Xin; Ha, Soo Jung; Hewings, Geoffrey; Turner, Karen
    Abstract: This paper considers the application of input-output accounting methods to consider the pollution implications of different production and consumption activities, with specific focus on pollution embodied in intra-and inter-national trade flows. We consider the illustrative case studies of interregional trade flows between two regions of the UK and between five Mid-West regions/states within the US. We focus on different types of air pollutant of current policy concern in each case and demonstrate how use of the environmental input-output framework allows us to analyse the nature and significance of interregional pollution spillovers. Our results raise questions in terms of the extent to which authorities at regional level can control local emissions where they are limited in the way some emissions can be controlled, particularly with respect to changes in demand elsewhere within the national economy. This implies a need for policy co-ordination between national and regional level authorities to meet emissions reductions targets. Moreover, the existence of pollution trade balances between regions also raises issues in terms of net losses/gains in terms of pollutants as a result of interregional trade. In conducting analyses for different types of air pollutant (here CO2 as a global warming gas, GHG, in the UK case and ammonia, NH3, as a pollutant of more local concern in the US case) we also consider how pollution embodied in international trade flows may be accounted for and attributed.
    Keywords: air pollution; pollution attribution; pollution trade balance; Interregional input-output models
    Date: 2011–05
  12. By: Andrew Coleman (Motu Economic and Public Policy Research and the University of Waikato)
    Abstract: Under the New Zealand Emissions Trading Scheme, foresters can obtain carbon units as their forests sequester carbon. If they sell these units as they are earned, the units must be repurchased when the forest is harvested, exposing foresters to price risk. This paper examines the way forward markets, futures markets, and carbon lending markets could be used to manage this risk. It argues that carbon lending markets are likely to be the most convenient form for foresters, as they allow the total returns from forestry investments to be increased with minimal risk. The carbon units can be lent to industrial firms or developers of new forests to minimise the carbon risk they face if they make carbon reducing investments.
    Keywords: carbon banking, carbon forward markets, forest sequestation
    JEL: Q23 Q55
    Date: 2011–05
  13. By: Emanuele Massetti (Fondazione Eni Enrico Mattei and Euromediterranean Center for Climate Change)
    Abstract: The aim of the paper is to present evidence that China and India are, and will remain, two very different actors in international negotiations to control global warming. We base our conclusions on historical data and on scenarios until 2050. The Business-as-Usual scenario (BaU) is compared to four Emissions Tax scenarios to draw insights on major transformations in energy use and in energy supply and to assess the possible contribution of China and India to a future international climate architecture. We study whether or not the Copenhagen intensity targets require more action than the BaU scenario and we assess whether the emissions reductions induced by the four tax scenarios are compatible with the G8 and MEF pledge to reduce global emissions by 50% in 2050.
    Keywords: Climate Change, China, India, Energy Efficiency, Energy and Development
    JEL: Q32 Q43 Q54 Q43 O53 P52
    Date: 2011–02
  14. By: B. Andrew Chupp (Department of Economics, Illinois State University)
    Abstract: It has been widely shown in the literature that states act strategically when forming environmental policies. However, this strategic interaction could be the result of two different effects. In the hypothesis of tax competition, states strategically set environmental standards in order to attract a fixed amount of mobile capital. In a spillover model, states set environmental policies strategically in response to pollution that spills over from other states. The previous literature has been unable to separate the two effects. Using weighting matrices specifically tailored to each form of competition, I am able to separate the effects, showing that tax competition explains 38% of interaction in environmental policy while spillover competition explains 62%.
    Keywords: Tax Competition, Spillovers, Environmental Policy
    Date: 2011–04
  15. By: McGregor, P. G. (Peter Gregor); Munday, Max; Swales, J. Kim; Turner, Karen
    Abstract: Targets for CO2 reduction tend to be set in terms of the amount of pollution generated within the borders of a given region or nation. That is, under a "production accounting principle". However, in recent years there has been increased public and policy interest in the notion of a carbon footprint, or the amount of pollution generated globally to serve final consumption demand within a region or nation. That is, switching focus to a "consumption accounting principle". However, this paper argues that a potential issue arising from the increasing focus on consumption-based "carbon footprint" type measures is that while regional CO2 generation embodied in export production is attributed outside of the region (i.e. to the carbon footprints of other regions/nations), regional consumers are likely to benefit from such production. Moreover, where there is a geographical and supply chain gap between producers and final consumers, it may be difficult to identify precisely "whose" carbon footprint emissions should be allocated to. We demonstrate our argument by using a regional computable general equilibrium (CGE) model of the Welsh economy to simulate the impacts of an increase in export demand for the output of an industry (metal manufacturing) that is both carbon and export intensive and generally produces to meet intermediate rather than final demands. In doing so, we demonstrate how the CGE model results may be used to create „post-shock‟ input-output accounts to examine changes in the structure of economic activity and the resulting impact on CO2 generation under both production and consumption accounting measures. In this respect, to our knowledge, the current paper makes a novel contribution in using CGE techniques to model "carbon footprint" impacts of a change in economic activity.
    Date: 2011–04
  16. By: Halkos, George; Tzeremes, Nickolaos
    Abstract: This paper uses both conditional and unconditional Data Envelopment Analysis (DEA) models in order to determine different environmental efficiency levels for a sample of 110 countries in 2007. In order to capture the effect of countries compliance with the Kyoto Protocol Agreement (KPA), we condition the years since a country has signed the agreement until 2007. Particularly, various DEA models have been applied alongside with bootstrap techniques in order to determine the effect of Kyoto protocol agreement on countries’ environmental efficiencies. The study illustrates how the recent developments in efficiency analysis and statistical inference can be applied when evaluating environmental performance issues. The results indicate that the first six years after countries signed the Kyoto protocol agreement have a positive effect on their environmental efficiencies. However after that period it appears that countries avoid complying with the actions imposed by the agreement which in turn has an immediate negative effect on their environmental efficiencies.
    Keywords: Environmental efficiency; Kyoto protocol agreement; Conditional full frontiers; Statistical inference; DEA
    JEL: Q50 C00 C60 Q58
    Date: 2011–05
  17. By: ZhongXiang Zhang (East-West Center)
    Abstract: China has shifted control over resources and decision making to local governments and enterprises as the result of the economic reforms over the past three decades. This devolution of decision-making to local levels and enterprises has placed environmental stewardship in the hands of local officials and polluting enterprises who are more concerned with economic growth and profits than the environment. Therefore, effective environmental protection needs their full cooperation. Against this background, this paper discusses a variety of tactics that China’s central government has been using to incentivize local governments, and a number of market-based instruments, supporting economic policies, environmental performance ratings and disclosure and cooperation with financial institutions to promote long-lasting, improved corporate energy-saving and environmental performance. It concludes that there is a clear need to carefully examine those objective and subjective factors that lead to the lack of local official’s cooperation on the environment, and provides some suggestions for appropriated incentives to get their cooperation.
    Keywords: Effective Environmental Protection, Incentive Structure, Economic Instruments, Industrial Policy, Financial Institutions, Government Decentralization, China
    JEL: Q53 Q56 Q58 Q43 Q48 H23 H75 R51
    Date: 2011–02
  18. By: Carías Vega , Dora; Alpízar, Francisco
    Abstract: Choice experiments, a stated preference valuation method, are proposed as a tool to assign monetary values to environmental externalities during the ex-ante stages of environmental impact assessment. This case study looks at the impacts of the Costa Rican Institute of Electricity’s Toro 3 hydroelectric project and its affects on the Recreo Verde tourism center in San Carlos, Costa Rica. Compared to other valuation methods (e.g., travel cost and contingent valuation), choice experiments can create hypothetical but realistic scenarios for consumers and generate restoration alternatives for the affected good. Although they have limitations that must be taken into account in environmental impact assessments, incorporating economic parameters—especially resource constraints and tradeoffs—can substantially enrich the assessment process.
    Keywords: stated-preference, economic valuation, choice experiments, hydropower, tourism, Costa Rica
    JEL: Q26 Q4
    Date: 2011–05–05
  19. By: Blackman, Allen (Resources for the Future); Chandru, Santosh; Mendoza-Dominguez, Alberto; Russell, A.G.
    Abstract: In the past two decades, rapid population and economic growth on the U.S.–Mexico border has spurred a dramatic increase in electricity demand. In response, American energy multinationals have built power plants just south of the border that sell most of their electricity to the United States. This development has heightened concern about border area’s already-poor air quality because these plants effectively skirt U.S. environmental regulations. Yet to our knowledge, this concern has not been subjected to rigorous scrutiny. This paper uses a suite of air dispersion, health impacts, and valuation models to assess the benefits of offsetting polluting emissions from two power-exporting plants in Mexicali, Baja California. We find that these plants have extensive health impacts, including more than 1.9 short-term mortalities and hundreds of respiratory hospital admissions per year, which we value at almost US$8 million. The vast majority of these health impacts are associated with ozone pollution in the United States caused by one of the two plants’ emissions. These findings bolster the case for changing U.S. law either to require power-exporting plants to reduce or offset their emissions or to provide incentives for them to do so.
    Keywords: electricity, air pollution, Mexico
    JEL: Q48 Q51 Q53
    Date: 2011–04–08
  20. By: Blackman, Allen (Resources for the Future); Chandru, Santosh; Mendoza-Domínguez, Alberto; Russell, A.G.
    Abstract: In the past two decades, rapid population and economic growth on the U.S.–Mexico border has spurred a dramatic increase in electricity demand. In response, American energy multinationals have built power plants just south of the border that sell most of their electricity to the United States. This development has heightened concern about border area’s already-poor air quality because these plants effectively skirt U.S. environmental regulations. Yet to our knowledge, this concern has not been subjected to rigorous scrutiny. This paper uses a suite of air dispersion, health impacts, and valuation models to assess the benefits of offsetting polluting emissions from two power-exporting plants in Mexicali, Baja California. We find that these plants have extensive health impacts, including more than 1.9 short-term mortalities and hundreds of respiratory hospital admissions per year, which we value at almost US$8 million. The vast majority of these health impacts are associated with ozone pollution in the United States caused by one of the two plants’ emissions. These findings bolster the case for changing U.S. law either to require power-exporting plants to reduce or offset their emissions or to provide incentives for them to do so.
    Keywords: electricity, air pollution, Mexico
    JEL: Q48 Q51 Q53
    Date: 2011–04–12
  21. By: Heijden, E.C.M. van der; Moxnes, E. (Tilburg University, Center for Economic Research)
    Abstract: Environmentalists often urge their home countries to take a leading role in reducing global environmental problems like climate change. A pertinent question is: will examples set by leading nations influence others to follow suit, and if so, do the costs of leading matter? For instance, will costly domestic reductions have a stronger effect on followers than purchases of cheap emission permits abroad? To investigate these questions we have conducted two treatments in a public bad experiment in which leaders have different costs of leading. Our findings suggest that higher costs of leading lead to stronger effects of a given leader example. Randomly chosen leaders lead by example and set better examples if it is less costly to do so. Finally, there seems to be a limit to the leader effect and it may decrease over time.
    Keywords: experiment;leadership;public bad;climate change.
    JEL: C92 H41 Q50
    Date: 2011
  22. By: Sophie Bernard (Centre d'Economie de la Sorbonne - Paris School of Economics)
    Abstract: This paper presents a theoretical model of remanufacturing where a duopoly of original manufacturers produces a component of a final good. The specific component that needs to be replaced during the lifetime of the final good creates a secondary market where independent remanufacturers enter the competition. An environmental regulation imposing a minimum level of remanufacturability is also introduced. The main results establish that, while collusion of the firms on the level of remanufacturability increases both profit and consumer surplus, a social planner could use collusion as a substitute for an environmental regulation. However, if an environmental regulation is to be implemented, collusion should be repressed since competition supports the public intervention better. Under certain circumstances, the environmental regulation can increase both profit and consumer surplus. Part of this result supports the Porter Hypothesis, which stipulates that industries respecting environmental regulations can see their profits increase.
    Keywords: Remanufacturing, competition, environmental regulation, Porter hypothesis.
    JEL: H23 L10 L51 Q53 Q58
    Date: 2011–04
  23. By: Dirk Rübbelke (Basque Centre for Climate Change (BC3) and IKERBASQUE, Basque Foundation for Science); Pia Weiss (Nottingham University Business School)
    Abstract: We study the impact of environmental regulations on the patent activities for wind turbines between 1980 and 2008. We explicitly control for energy market liberalisation and take a potential interaction between liberalisation and policy instruments into account. We find a strong and highly significant effect of environmental tax revenues, which we regard as a proxy for the extent to which energy prices changed in favour of renewable energies, as well as foreign demand for wind turbines on innovation activities. In addition, we find that price-based policy instruments are more effective in fostering innovations in the wind turbine technology when energy markets are fully open to competition. In contrast, non-price-based policy instruments such as grants or low interest rate loans are largely independent from whether or not energy markets are liberalised.
    Keywords: Environmental Policy, Renewable Energy, Market Structure, Wind Turbines, Innovation, Patents, Technological Change
    JEL: Q55 Q58 O34 O38
    Date: 2011–04
  24. By: Dionysis Latinopoulos (Department of Spatial Planning and Development, Aristotle University of Thessaloniki); Eftichios Sartzetakis (Department of Economics, University of Macedonia)
    Abstract: A great challenge facing future agricultural water policy is to explore the potential for transition from the current myopic competitive (common) exploitation of groundwater resources to a long-term efficient and sustainable allocation. A number of economic and/or command and control instruments can be used by the relevant water authority in order to deal with the economic and environmental problems generated by competitive exploitation. However, according to previous experience in both developed and developing countries, tradable permits seem as one of the most effective and efficient instruments, especially under conditions of limited water availability. On this account, the aim of the current study is to explore the feasibility and implementation of a tradable permit system in irrigated agriculture. To this end, two distinct optimization models are applied and compared: (a) an individual farmer’s model (representing the myopic non-cooperative exploitation of groundwater) and (b) a social planner’s model (representing the cooperative and sustainable allocation). The deviation of their results shows the rationale for using a tradable permit system, while the final allocation of the social planner’s model, solved as an optimal control problem that maximizes the social welfare under specific water policy objectives, denotes the equilibrium state of this system. The two models are then applied in a typical rural area of Greece where groundwater is the only source of irrigated agriculture. The derived time paths for water consumption and water availability illustrate the significant environmental benefits from the future implementation of a tradable permit system.
    Keywords: Tradable Water Permits, Sustainable Water Use, Irrigated Agriculture
    JEL: Q15 Q25 Q28
    Date: 2011–03
  25. By: Liam Wagner (School of Economics, The University of Queensland); John Foster (School of Economics, The University of Queensland)
    Abstract: This paper examines the economic competitiveness of implementing Carbon Capture and Storage (CCS) for deployment on the Australia’s National Electricity Market (NEM) against conventional base load electricity generation. By examining the Levelised Cost of Energy (LCOE) for sent out generation as a suitable hurdle for judging the future prospects of different technology types, we examine the likely mix of generation assets that could be invested in. After examining the LCOE it is shown that CCS enabled technologies will not be competitive in Australia until 2025, which is well beyond the first emissions reduction target for 2020.
    Keywords: Levelised Cost of Energy; Electricity Generation; Emissions Reduction; Carbon Capture and Storage
    JEL: Q40 G12 C61
    Date: 2011–05
  26. By: Georg Zachmann
    Abstract: In its third phase (2013-20) the European Union's emissions trading system (ETS) will issue allowances for around two billion tonnes of CO2 equivalent each year. The emission rights are valued at around Â?30-35 billion at current prices, between one-half and two-thirds of the amount the EU spends on the Common Agricultural Policy. The redistributive effects of the allocation of emission allowances are therefore potentially significant. Quantitative indicators for the relative degree to which individual countries will be affected by the ETS suggest that economic consequences for the member states will be quite different. In this policy brief, Georg Zachmann finds that countries with less favourable initial conditions are eventually largely compensated. Click here to download the ETS indicators by country
    Date: 2011–01
  27. By: Jean-Christophe MARTIN (GREThA); Stéphane BECUWE (GREThA)
    Abstract: In order to reach greenhouse gas (GHG) emissions reduction target becoming more and more restrictive, regions have to be invited to implement, in consultation with their nation, a climate plan, henceforth regionalized. The effectiveness of its implementation requires dynamic studies which necessitates a range of statistical data. However, most countries have a poor regional accounting. This is particularly the case for France. To enable us to regionalize the national climate plan, we applied for the Aquitaine region, situated in southwest of France, the structural decomposition analysis. The results from this analysis compared to data from the national statistical institute (INSEE) shows the interest of this analysis.\r\nThe interest of structural decomposition analysis is extended by the possibility to carry out, from the obtained results, two types of studies: the first one is retrospective and the other one is prospective. The retrospective study aims to quantify between 1999 and 2005 the evolution of greenhouse gas (GHG) emissions for 47 sectors and to select the main factors responsible of the evolution of these emissions for the Aquitaine region. Regarding the prospective analysis, a baseline scenario was constructed by using the Bootstrap method in order to estimate the impacts of the regional climate plan target on its GHG emissions for the year 2013.
    Keywords: structural decomposition analysis, regional economy, greenhouse gas emissions, input-output modeling
    JEL: C14 C67 Q4 Q54 R15
    Date: 2011
  28. By: Francesca MARCHETTA
    Abstract: The households who live in the rural areas of Northern Ghana base their subsistence on natural resources, which are threatened by the progressive desertification and increased frequency of extreme weather events in the region. We draw on a field work and on extensive secondary data sources to analyze how the rural population successfully adapted its livelihood strategies to cope with the economic, institutional and environmental changes which occurred over the last two decades. The field work evidences significant differences across communities in the adaptation strategies, which depend closely on the available portfolio of assets. The analysis evidences serious concerns about the environmental consequences of some of the observed changes in livelihood strategies, strengthening the case for public policies aimed at promoting a sustainable development in the region.
    Keywords: Livelihood Strategies, agriculture, Non Farm Activities, Internal migration, sustainable development, Rural Areas
    JEL: Q15 O55 O18 I31
    Date: 2011
  29. By: Athanasios Lapatinas (University of Ioannina); Anastasia Litina (University of Ioannina); Eftichios S. Sartzetakis (University of Macedonia)
    Abstract: We construct an overlapping generations model in which agents live through two periods; childhood and adulthood. Each agent makes choices only as an adult, based on her utility that depends on her own consumption and the human capital and environmental quality endowed to her offspring. Entering adulthood, agents choose randomly between two occupations: citizens and politicians. Citizens are the only producers of a single good and choose the proportion of their income to declare to the tax authorities. Politicians decide upon the allocation of the tax revenue between environmental protection and education activities, taking as given the rates of peculation in each activity. In this context, two self-fulfilling stable equilibria can emerge, one associated with high and another with low corruption. Corrupted politicians induce high levels of tax evasion, reducing total public funds and thus environmental protection activities. This result is in accordance with existing empirical evidence and implies that environmental policies may fail in corrupt countries where they are used as means of supporting rent seeking activities instead of protecting the environment. A higher level political authority could intervene and force the low corruption equilibrium by choosing the appropriate tax rate and, through institutional changes, the rates of peculation.
    Keywords: Corruption, Environmental Policy
    JEL: H2 H26 H3 Q56 Q58
    Date: 2011–02
  30. By: Peter Garforth; Dale Medearis
    Abstract: This paper looks at Arlington County Virginia’s efforts to become more economically competitive, energy efficient, sustainable and emit fewer greenhouse gases. It reviews the county’s experiences in the creation of green jobs to accelerate deployment of energy efficient and low-carbon technologies, practices and policies. The paper also looks at the impacts on the overall attractiveness of the community as a place to live and work, including ways in which innovative energy systems create attractive investment opportunities for business. A major focus will be to review the importance of initiatives scaled to the community-level and the degree to which the examples are demonstrating the value of “scale” in implementation. This working paper feeds into the wider OECD project on Climate Change, Employment and Local Development being developed by the LEED Programme.
    Date: 2011–04
  31. By: Gabriela Miranda; Hyoung-Woo Chung; David Gibbs; Richard Howard; Lisa Rustico
    Abstract: Extremadura is the fifth largest region in Spain, with certainly one of the most diverse eco-systems and abundant natural resources. Extremadura launched a series of initiatives to facilitate the transition to a green economy which means a model that takes into consideration economic, social and environmental aspects with one core objective: create jobs. <p> How can Extremadura exploit its capacities to broaden the employment basis while moving to a green economy? What actions and priorities should the regional government take into account to move an economic development and employment agenda forward in this new context? How can Extremadura pursue its efforts to remain one of the least polluting regions in Spain while supporting job creation? Which are the economic sectors with potential for job creation in Extremadura? This study sought to provide guidance and policy recommendation to Extremadura on these and other issues related to the transition of the labour market to the green economy.<p> The study on "Climate Change, Employment and Local Development in Extremadura", was undertaken by the Local Economic and Employment Development (LEED) Programme of the Organisation for Economic Co-operation and Development (OECD) in collaboration with the Regional Ministry of Equality and Employment of Extremadura
    Date: 2011–04
  32. By: Stergios Athanassoglou (Fondazione Eni Enrico Mattei and Euro-Mediterranean Center for Climate Change); Anastasios Xepapadeas (Athens University of Economics and Business and Beijer Fellow)
    Abstract: The precautionary principle (PP) applied to environmental policy stipulates that, in the presence of physical uncertainty, society must take robust preventive action to guard against worst-case outcomes. It follows that the higher the degree of uncertainty, the more aggressive this preventive action should be. This normative maxim is explored in the case of a stylized dynamic model of pollution control under Knightian uncertainty. At time 0 a decision-maker makes a one-time investment in damage-control technology and subsequently decides on a desirable dynamic emissions policy. Adopting the robust control framework of Hansen and Sargent [10], we investigate optimal damage-control and mitigation policies. We show that optimal investment in damage control is always increasing in the degree of uncertainty, thus confirming the conventional PP wisdom. Optimal mitigation decisions, however, need not always comport with the PP and we provide analytical conditions that sway the relationship one way or the other. This result is interesting when contrasted to a model with fixed damage-control technology, in which it can be easily shown that a PP vis-a-vis mitigation unambiguously holds. We conduct a set of numerical experiments to determine the sensitivity of our results to specific functional forms of damage-control cost. We find that when the cost of damage-control technology is low enough, damage-control investment and mitigation may act as substitutes and a PP with respect to the latter can be unambiguously irrational.
    Keywords: Risk, Ambiguity, Robust Control, Precautionary Principle, Pollution Control
    JEL: C61 D80 D81
    Date: 2011–02
  33. By: Lota D., Tamini; Bruno, Larue; West, Gale E.
    Abstract: An input distance function (IDF) is estimated to empirically evaluate and analyze the technical and environmental efficiencies of 210 farms located in the Chaudière watershed (Quebec), where water quality problems are particularly acute because of the production of undesirable outputs that are jointly produced with agricultural products. The true IDF is approximated by a flexible translog functional form estimated using a full information maximum likelihood method. Technical and environmental efficiencies are disaggregated across farms and account for spatial variations. Our results show that there is a significant correlation between technical and environmental efficiencies. Farms that are technically efficient tend to be environmentally efficient. We used the cumulative Malmquist productivity index and the Fisher index to measure changes in technology, profitability, efficiency, and productivity in response to the adoption of 2 selected best management practices (BMPs) whose objective is to reduce water pollution. We found significant differences across BMPs regarding the direction and the magnitude of their effect on profitability, efficiency and productivity.
    Keywords: Environment efficiency, distance function, phosphorus rumoff, productivity, profitability, technical efficiency, Agribusiness,
    Date: 2011–04
  34. By: Nguyen Thang Dao (Center for Operations Research and Econometrics (CORE)- Université Catholique de Louvain); Julio Dávila (Centre d'Economie de la Sorbonne)
    Abstract: We consider in this paper overlapping generations economies with polution resulting from both consumption and production. The competitive equilibrium steady state is compared to the optimal steady state from the social planner's viewpoint. We show that any competitive equilibrium steady state whose capital-labor ratio exceeds the golden rule ratio is dynamically inefficient. Moreover, the range of dynamically efficient steady states capital ratios increases with the effectiveness of the environment maintainance technology, and decreases for more polluting production technologies. We characterize some tax and transfer policies that decentralize as a competitive equilibrium outcome the social planner's steady state.
    Keywords: Overlapping generations, environmental externality, tax and transfer policy.
    JEL: D62 E21 H21 H41
    Date: 2010–12
  35. By: Jha, Abhas; Lamond, Jessica; Bloch, Robin; Bhattacharya, Namrata; Lopez, Ana; Papachristodoulou, Nikolaos; Bird, Alan; Proverbs, David; Davies, John; Barker, Robert
    Abstract: Urban flooding is an increasingly important issue. Disaster statistics appear to show flood events are becoming more frequent, with medium-scale events increasing fastest. The impact of flooding is driven by a combination of natural and human-induced factors. As recent flood events in Pakistan, Brazil, Sri Lanka and Australia show, floods can occur in widespread locations and can sometimes overwhelm even the best prepared countries and cities. There are known and tested measures for urban flood risk management, typically classified as structural or engineered measures, and non-structural, management techniques. A combination of measures to form an integrated management approach is most likely to be successful in reducing flood risk. In the short term and for developing countries in particular, the factors affecting exposure and vulnerability are increasing at the fastest rate as urbanization puts more people and more assets at risk. In the longer term, however, climate scenarios are likely to be one of the most important drivers of future changes in flood risk. Due to the large uncertainties in projections of climate change, adaptation to the changing risk needs to be flexible to a wide range of future scenarios and to be able to cope with potentially large changes in sea level, rainfall intensity and snowmelt. Climate uncertainty and budgetary, institutional and practical constraints are likely to lead to a combining of structural and non-structural measures for urban flood risk management, and arguably, to a move away from what is sometimes an over-reliance on hard-engineered defenses and toward more adaptable and incremental non-structural solutions.
    Keywords: Hazard Risk Management,Wetlands,Natural Disasters,Adaptation to Climate Change,Climate Change Impacts
    Date: 2011–05–01
  36. By: Giulio Cainelli (University of Padova); Massimiliano Mazzanti (University of Ferrara); Sandro Montresor (University of Bologna)
    Abstract: This paper investigates the drivers of the environmental innovations (EI) introduced by firms in local production systems (LPS). The role of firm network relationships, agglomeration economies and internationalization strategies is analysed for a sample of 555 firms in the Emilia-Romagna region, North-East of Italy. Cooperating with ‘qualified’ local actors – i.e. universities and suppliers – is the most important driver of EI for most firms, along with their training policies and IT innovations. The role of agglomeration economies is less clear and seems to depend on the EI propensity of more locally oriented firms playing in district areas, which might even turn agglomeration into dis-economies. Networking effects and agglomeration economies are instead found to strongly promote the adoption of EI by multinational firms, thus highlighting the importance of local-global interactions. We provide some interesting findings for particular kinds of challenging EI in fields as CO2 abatement and ISO labelling, generally extending the analysis EI driver by joining local and international factors.
    Keywords: Eco-Innovation, Foreign Ownership, Networking, District, Agglomeration Economics, Local Production Systems
    JEL: C21 L60 O13 O30 Q20 Q58 F23
    Date: 2011–02
  37. By: South Asian Network for Development SANDEE
    Abstract: As countries in South Asia ready themselves for climate change and the possibility of increased frequency in natural disasters, it is useful to understand how well post disaster operations work to help victims. [Policy Brief No. 50-10]. URL: [ uments/publication/902_PUB_Policy_Brief_ 50_Asha.pdf].
    Keywords: sri lanka, tsunami, develoment aid, districts, census, aid, boat, occupation, housing, fishermen, south asia, climate change, natural disasters, victims, frequency,
    Date: 2011
  38. By: Bellas, Allen S.; Finney, Duane; Lange, Ian
    Abstract: Prior to adoption of the 1972 Clean Water Act (CWA) most U.S. power plants used once-through cooling water systems that discharged large quantities of warm water and resulted in significant amounts of thermal pollution in neighboring bodies of water. The CWA essentially mandated recirculating systems for most new facilities. This paper investigates whether there was either cost-saving or performance enhancing technological advance in cooling systems and how these advances are related to imposition of the CWA.
    Keywords: Environmental Policy; Water Cooling: Innovation; Electricity Generatio n
    Date: 2011–03
  39. By: Manoj Roy; Simon Guy; David Hulme; Ferdous Jahan
    Abstract: Around 40 percent of Bangladesh’s population are poor people for whom a variable and unpredictable climate can critically restrict livelihood options. This is true in rural and urban areas alike, but this study focuses on the latter. Urban poverty continues to be neglected in research, policy and action for climate change adaptation in the country. The study builds on three propositions: (i) poor urban communities are places where physical and socioeconomic vulnerability coincide; (ii) urban areas are exposed to three forms of climate change impact: rapid-onset events, gradual-onset processes, and cascade effects; and (iii) poor urban people are already adapting to emergent climate change impacts by actively developing various practices. The analytical framework places a strong emphasis on poor people’s adaptation practices in order to understand their agency, cultural resources and economic strategies and the structural factors that both support and constrain their agency. The practices are examined in terms of three key elements: the socio-economic resources of poor urban households and communities; institutions and political economy; and external actors and resources. Six low-income settlements have been chosen for case studies from three cities – Dhaka, Chittagong and Khulna. Data collection involves: mini-surveys; qualitative methods; dialogues with local academics, policymakers and civil society groups; and action research. Key analytical findings include the identification and analysis of existing practices under five broad themes (e.g. livelihoods, built environment, networks, institutions, and external supports).
    Date: 2011
  40. By: Stuart, Charles
    Abstract: We calculate the harm a birth imposes on others when greenhouse gas emissions are a problem and a cap limits emissions damage. This negative population externality, which equals the corrective Pigovian tax on having a child, is substantial in calibrations. In our base case, the Pigovian tax is 21 percent of a parent's lifetime income in steady state and 5 percent of lifetime income immediately after imposition of a cap, per child. The optimal population in steady state, which maximizes utility taking account of the externality, is about one quarter of the population households would choose voluntarily
    Keywords: population externality, Pigovian tax, emissions cap, endogenous fertility, population growth, economic growth, optimal population, calibrated optimal child tax, greenhouse gas emissions, global warming, Economic Theory, Growth and Development, Public Economics
    Date: 2011–04–22
  41. By: International Rivers Network IRN
    Abstract: With 11 large hydropower dams proposed to block the Lower Mekong River’s mainstream, the future of the river lies at a crossroads. To inform decision-making, in October 2010, the Mekong River Commission (MRC) published a Strategic Environment Assessment (SEA) report that offers a critical appraisal of the dam plans. The report evaluates future economic benefits from power-generation against a wide-range of environmental costs and impacts to riverside communities and their local economies. As these dams threaten to irreversibly undermine the ecology of the Mekong River and will place at risk the livelihoods and food security of millions of people who depend upon the river’s resources, the main recommendation of the SEA report is that decisions on whether to proceed with the mainstream dams should be deferred for a period of ten years until further studies can be conducted to ensure that decision-makers are fully informed of the risks. With so much at stake, it is crucial that the Mekong region’s decision-makers endorse and adopt the SEA’s recommendations before it’s too late.URL:[http://www.internationalrivers .org/files/SEA%20Factsheet_Eng.pdf].
    Keywords: mekong, region, decision makers, security, people, dams, river resources, hydropower, lower mekong, environment assessment, plans, environemental costs, riverside, communities, local econmies, ecology, livelihoods, food security,
    Date: 2011
  42. By: Ernesto Valenzuela (Centre for International Economic Studies, School of Economics, University of Adelaide); Kym Anderson (Centre for International Economic Studies, School of Economics, University of Adelaide)
    Abstract: Recent analyses of the possible adverse effects of climate change on agriculture in developing countries have raised food security concerns, especially for farm households who comprise most of the worldÂ’s poor and whose crop productivity is expected to fall. The present study uses a global economy-wide model to assess the expected (in some cases positive) effects on temperate zone crop productivity and the upward pressure on farm product prices from yield falls in developing countries. Also modelled is an expected adverse effect of higher temperatures and humidity in the tropics on the productivity of unskilled workers in developing countries. The net effect of those combined shocks on the agricultural sectorÂ’s competitiveness in any developing country is an economy-wide empirical matter, since unskilled workers are employed in nonfarm as well as farm activities. Given the degrees of uncertainty about plausible effects of climate change, our modelling accounts for a range of yield productivity and labor shocks. The results provide a range of consequences for international agricultural prices and for national food consumption, net farm income and economic welfare.
    Keywords: Climate change, crop and labour productivity growth, global economy-wide model projections
    JEL: D58 F17 Q17 Q24 Q54
    Date: 2011–04
  43. By: Dorothée Boccanfuso (Département d’économique and GRÉDI, Université de Sherbrooke); Massa Coulibaly (GREAT -- Groupe de recherche en économie appliquée et théorique); Govinda R. Timilsina (The World Bank); Luc Savard (Département d’économique and GRÉDI, Université de Sherbrooke)
    Abstract: A biofuels race has been observed around the world with rising cost of oil and the increasing concerns over climate change. Unfortunately, this growth is associated with rising food prices, which is a major concern in developing countries like Mali. The development of biofuels in Mali should contribute to reducing dependency on imported fossil fuels and avoiding competing for land used for food production. This study carries out an economic and distributional impact analysis with a microsimulation and CGE model of the prospects of large-scale expansion jatropha to produce biofuels in Mali. We also investigate the impacts of promoting biofuels through a tax-subsidy scheme. Our results reveal that macro effects are slightly negative or weakly positive but generate reductions in poverty at the national level and for rural households. The pro-poor analysis does not reveal a clear trend with proportional, progressive and regressive outcomes.
    Keywords: Biofuels, agriculture, computable general equilibrium model, micro-simulation, distributional analysis.
    JEL: D58 D31 I32 Q17
    Date: 2011–05
  44. By: R S Deshpande; D K Marothia; Khalil Shah
    Abstract: The main objectives of the study were to analyze the role of non-timber forest products in poverty alleviation in Chhattisgarh; to examine the system of governance, institutional framework and programs for community based management practices in nontimber forest products of Chhattisgarh; and to examine the leasing policy for common rural water bodies, its positive/negative impact in terms of conflict among different stakeholders in Orissa. URL: [ %20Pool%20Resources.pdf].
    Keywords: eastern india, tribal areas, orissa, poverty, chhattisgarh, rural water, forest products, non-timber, harvest, stakeholders, ecological balance, SHGs, CULTURE FISHERIES,farmers,
    Date: 2011
  45. By: Fischer, Carolyn (Resources for the Future); Springborn, Michael R.
    Abstract: For reducing greenhouse gas emissions, intensity targets are attracting interest as a flexible mechanism that would better allow for economic growth than emissions caps. For the same expected emissions, however, the economic responses to unexpected productivity shocks differ. Using a real business cycle model, we find that a cap dampens the effects of productivity shocks in the economy on all variables except for the shadow value of the emissions constraint. An emissions tax leads to the same expected outcomes as a cap but with greater volatility. Certainty-equivalent intensity targets maintain higher levels of labor, capital, and output than other policies, with lower expected costs and no more volatility than with no policy.
    Keywords: emissions tax, cap-and-trade, intensity target, business cycle
    JEL: Q2 Q43 Q52 H2 E32
    Date: 2011–04–29
  46. By: Nicola Doni (Dipartimento Scienze Economiche, Università di Firenze); Giorgio Ricchiuti (Dipartimento Scienze Economiche, Università di Firenze)
    Abstract: This paper analyzes how the interaction between green consumers and responsible firms affects the market equilibrium. The main result is that a higher responsibility by both producers and consumers can have different impacts on the efficiency of the firms’ abatement activity, depending on the nature of the cleaning costs. When the abatement costs are fixed, the efficiency of the clean-up effort is always increasing in their degree of responsibility. On the other hand, when the abatement costs are variable, a higher level of responsibility may reduce social welfare. Finally, the first best allocation is never reached, even in the presence of the highest credible level of responsibility of both consumers and producers.
    Keywords: Green Consumers, Corporate Social Responsibility, Vertical Differentiation
    JEL: D62 L13 L21
    Date: 2011–04
  47. By: Gérard Mondello (University of Nice Sophia Antipolis, CREDECO, GREDEG, UMR 6727, CNRS)
    Abstract: This paper addresses the conditions for setting up strict civil liability schemes. For that it compares the social efficiency of two main civil liability regimes usually enforced to protect the environment: the strict liability regime and the “capped strict liability scheme”. First, it shows that the regulator faces an effective dilemma when he has to enforce one of these schemes. This because the social cost of a severe harm (and the associated optimum care effort) is determined independently of any liability regime. This independency has economic consequences. First, victims and polluters pit one against another about the liability regime that the government should enforce. Hence, financially constrained polluters prefer the ceiling of responsibilities while victims wish to extend the amount of redress under a “standard” strict liability. Economic criteria for enforcing a regime rather than another one are lacking. Second, the paper shows that implementing civil strict liability rules may be done by setting up care standards as for instance in the nuclear or the maritime sectors and demanding to the injurers to comply with them. We show that this goal can be achieved by resorting to some friendly monitoring corresponding to frequent random controls with low fines rather than few controls that should involve heavy fines.
    Keywords: Environment, Strict Liability, Ex-Ante Regulation, Ex-Post Liability, Judgment-Proof, Environment Law, CERCLA, Environmental Liability
    JEL: K0 K32 Q01 Q58
    Date: 2011–02
  48. By: Abebe Damte (Department of Economics, University of Pretoria); Steven F. Koch (Department of Economics, University of Pretoria)
    Abstract: This study examines the role of local level institutions and property right regimes on the forest-poverty link, with respect to non-wood forest products, using data from a random sample of rural households in Ethiopia. Households in the sample derive approximately 8.7% of their income from these products. The determinants of forest dependency were examined separately for different types of forest property right regimes. The findings suggest that forestry management devolution enhances resource use by the poor, while reducing dependency among the rich. Our estimation results, which are consistent across the different measures of forest dependency, also suggest that local level institutions are not significant factors in determining the use of non-wood forest products, a result that differs from the analysis of timber and other woody materials. From the study results, we conclude that generalizations of the forest-poverty link are not possible, as the link depends on the type of forest management and the specific characteristics that prevail in the area.
    Keywords: Property rights, forest dependency, local institutions, Ethiopia
    JEL: Q12 Q23 Q28 Q56 R14
    Date: 2011–05
  49. By: Bandyopadhyay, Subhayu; Bhaumik, Sumon; Wall, Howard
    Abstract: This paper explores optimal biofuel subsidization in the context of a general equilibrium trade model. The focus is on biofuels such as corn-based ethanol, which diverts corn from use as food to use as an intermediate input in energy production. In the small-country case, when a Pigouvian tax on conventional fuels such as crude is in place, the optimal biofuel subsidy is zero. When the tax on crude is not available as a policy option, however, a second-best biofuel subsidy (or tax) is optimal. In the large-country case, a biofuel subsidy spurs global demand for food and confers a terms-of-trade benefit to the food-exporting nation. In the absence of beggar-thy-neighbor trade policy tools due to WTO rules, the twin objectives of pollution reduction and term-of-trade improvement justify a combination of crude tax and biofuel subsidy for the food exporter. If the food importer also uses a biofuel subsidy (or tax), we have a Johnson (1953) type Nash equilibrium augmented by pollution considerations. If biofuel subsidies reduce global crude use, then in a Nash equilibrium, the food-exporting nation must use a subsidy, while a food-importing nation will impose a subsidy if and only if the pollution-reduction effect dominates the terms-of-trade effect.
    Keywords: Optimal Biofuel Subsidy; Pigouvian Tax; Terms-of-Trade; Pollution Externality
    JEL: O1 H2 F1
    Date: 2010–10
  50. By: P.K. Viswanathan; Ila Mehta; Kinjal D Pathak
    Abstract: A comprehensive assessment of the multiple benefits of mangrove ecosystems and their restoration efforts in Gujarat is made. The study is important and contextual as there are very limited empirical evidences as regards the impacts/ outcomes of mangrove restoration activities on the local communities in Gujarat.
    Keywords: mangrove, ecosystems, gujarat, local communities,biological assessment, villages, household survey, NGOs, employment opportunities, wages, animal husbandry, livestock,
    Date: 2011
  51. By: M. Fadaee
    Abstract: In this paper, we develop a two-country world di¤erential game model with a polluting firm in each country where there is transportation cost to investigate the equilibrium of the game between firms when they decide to trade or not and to see under which conditions social welfare coincides with the market equilibrium. We find out that in the static game bilateral trade is always the equilibrium for any acceptable transportation cost while in the dynamic game social planner can prevent the inefficient outcome by imposing and determining the proper amount of Pigouvian taxation.
    JEL: C73 F18 H23 Q56
    Date: 2011–05
  52. By: Corbett A. Grainger; Christopher Costello
    Abstract: Property rights are commonly touted as a solution to common pool resource problems. But in practice the security of these property rights varies substantially owing to differences in design. In fisheries, the design of individual transferable quotas (ITQs) varies widely; the consequences of these design differences on economic outcomes has not been studied. To test whether the security of these property rights affects asset values, we compile a unique dataset to examine the relationship between the exclusivity of property rights and the dividend price ratios for ITQs. We find evidence that stronger property rights lead to higher asset values and lower dividend price ratios in ITQ fisheries. This pecuniary effect of property rights security informs the current policy debate on the design of property rights institutions for managing natural resources.
    JEL: G12 P14 Q2 Q22
    Date: 2011–05
  53. By: Gérard Mondello (University of Nice Sophia Antipolis, CREDECO, GREDEG, UMR 6727, CNRS)
    Abstract: Ultra-hazardous risky activities as nuclear industry cannot be considered as “normal industries” i.e. industries without abnormal environmental and health risks. Consequently, the industrial organization of these specific sectors is of the utmost importance. This paper aims at studying this question. We focus on the associated costs of prevention and civil liability. We analyze how civil liability rules may contribute to extend or to discourage the expansion of nuclear parks to new operators. The paper compares the consequences of extending the management of nuclear stations to several independent operators. This question can apply to the unification process of the European electricity market in which several public and private nuclear power operators are running. The paper shows that the choice between either a monopolistic scheme (one operator managing several plants) or a decentralized one (one operator by station) depends on the condition of application of the legal civil liability regime and on the strength of the safety control exerted by the Nuclear Regulatory Authorities. It is shown that when the control is high, then the safety costs generated by the monopolistic organization are less than the same costs of a decentralized one. However, conditions on the insurance policy can mitigate this result.
    Keywords: Strict Liability, Electric Energy, Nuclear Plants
    JEL: Q5 Q58 Q53 K23 L13 L52 L94
    Date: 2011–04
  54. By: Nancy Birdsall; Benjamin Leo
    Abstract: In this paper, four categories of existing resource-mobilization options are examined, including (1) transportation levies; (2) currency and financial transaction taxes; (3) capitalization of IMF Special Drawing Rights (SDRs); and (4) the sale, mobilization, or capitalization of IMF gold. [Working Paper No. 248]. URL: [ ns/detail/1424979].
    Keywords: SDRs, resource mobilization, transportation levies, sale, mobilization, capitalization, IMF gold, currency and financial transaction taxes, climate change, public goods, money, developing world, livelihoods, welfare
    Date: 2011
  55. By: Chandana Anusha; Devika Narayan; Tanya Matthan
    Abstract: This particular field study is concerned with Van Panchayats, which can be seen as a variant of Common Property Resources. A comparison of the efficacy of this specific CPR across three villages in Uttarakhand, as the differences in use and management that can exist even within the same agro-climatic zone is charted out. The questions raised by Jodha which include differential dependence on CPRs and legal access to CPRs, de jure and de facto are investigated.
    Keywords: villages, panchayats, common property resources, CPRs, dependence, vanpanchayat, uttarkhand, agro-climatic zone, natural systems, forest, property, households, resources
    Date: 2011
  56. By: South Asian Network for Development SANDEE
    Abstract: The study looks at the relationship between indigenous people and their forest homes using a novel field field experiments approach. [Policy Brief No. 48-10]. URL:[ /documents/publication/906_PUB_Policy_Br ief_48_Rucha.pdf].
    Keywords: indigenous people, forest homes, field experiment, India, community management, environment, nagpur, research, development, villages, maharashtra, india
    Date: 2011

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