|
on Environmental Economics |
| By: | Silverstein, David N. |
| Abstract: | Funding a response to climate change after Kyoto will require another look at both burden sharing and funding mechanisms. After reviewing the risks of cap-and-trade with carbon offsets and the advantages of a harmonized carbon tax, a method is proposed to utilize a harmonized carbon price to finance the Green Climate Fund. A common carbon price is set across all nations with either a carbon tax or an emissions trading floor price with carbon offsets excluded. The harmonized carbon price is incrementally increased until 2050 to reach the cost of atmospheric removal and achieve equilibrium. Carbon revenues collected internally within nations are used for internal investments in climate change. Financing for the Green Climate Fund is generated from transferring a percentage of the collected revenues, based on a sliding window of historical responsibility for fossil fuel emissions and national wealth. Collected revenue is disbursed for climate aid based on a set of national climate need factors for adaptation and mitigation, including preserving strategic carbon absorbers, low-carbon infrastructures, technology transfer and population management. In the interest of distributive justice, nations themselves determine the need factors of each other. Unlike cap-and-trade, this method does not explicitly set emissions caps, but total global emissions can be regulated nevertheless. Formulas are presented for collection and disbursement, which require parameters for a globally harmonized carbon price, a climate fund contribution rate, historical responsibility from fossil fuel emissions, a national wealth threshold for fund contributions and need factors for each nation. Published economic and emissions data are used with the formulas to demonstrate an example of how the financing can work. This presents an equitable way to address climate needs across all nations on both a global and regional level. |
| Keywords: | climate change; global warming; green climate fund; carbon tax; cap-and-trade; climate finance; Kyoto protocol |
| JEL: | F18 F35 Q56 F51 E01 F53 Q54 |
| Date: | 2011–12–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:35280&r=env |
| By: | Thomas Eichner; Rüdiger Pethig |
| Abstract: | Internalizing the global negative externality of carbon emissions requires flattening the extraction path of world fossil energy resources (= world carbon emissions). We consider governments having sign-unconstrained emission taxes at their disposal and seeking to prevent world emissions from exceeding some binding aggregate emission ceiling in the medium term. Such a ceiling policy can be carried out either in full cooperation of all (major) carbon emitting countries or by a sub-global climate coalition. Unilateral action has to cope with carbon leakage and high costs which makes a strong case for choosing a policy that implements the ceiling in a cost-effective way. In a two-country two-period general equilibrium model with a non-renewable fossil- energy resource we characterize the unilateral cost-effective ceiling policy and compare it with its fully cooperative counterpart. We show that with full cooperation there exists a cost-effective ceiling policy in which only first-period emissions are taxed at a rate that is uniform across countries. In contrast, the cost-effective ceiling policy of a sub-global climate coalition is characterized by emission regulation in both periods. That policy may consist either of positive tax rates in both periods or of negative tax rates (= subsidies) in both periods or of a positive rate in the first and a negative rate in the second period. The share of the total stock of energy resources owned by the sub-global climate coalition turns out to be a decisive determinant of the sign and magnitude of unilateral cost-effective taxes. |
| Keywords: | unilateral climate policy, intertemporal climate policy, non-renewable energy resources, emission taxes |
| JEL: | H22 Q32 Q54 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:sie:siegen:151-11&r=env |
| By: | Thomas Eichner; Rüdiger Pethig |
| Abstract: | Internalizing the global negative externality of carbon emissions requires flattening the extraction path of non-renewable fossil-fuel resources (= world carbon emissions). Following Eichner and Pethig (2011b) we set up a two-country two-period model in which one of the countries represents a sub-global climate coalition that implements a binding ceiling on the world’s first-period emissions. The other country is the rest of the world and refrains from taking action. The climate coalition has at its disposal sign-unconstrained taxes on emissions in both periods, as in Eichner and Pethig (2011b), but in the present study it has the additional option of taxing consumption. The central question is whether and how the coalition makes use of consumption taxes along with emission taxes in its unilateral cost- effective ceiling policy. We identify cost-effective policies under various conditions and find that all consist of a (positive) tax on first-period consumption and of emission taxes whose rates are negative in the second period but may take on either sign in the first period. |
| Keywords: | carbon emissions, ceiling, unilateral, cost-effective regulation |
| JEL: | H21 H23 Q54 Q58 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:sie:siegen:152-11&r=env |
| By: | Adu, George |
| Abstract: | This paper examines the effect of environmental policy on economic growth in a small open economy in a neoclassical framework with pollution as an input. We show that environmental policy imposes a drag on long run growth in both the open and closed economy cases. The effect of environmental policy on growth is stronger in the open economy case relative to the closed economy model if the country has strong aversion to pollution and thus serves as a net exporter of capital in the international capital market. On the other hand, if the agents in the economy have low aversion to pollution and thus import capital, the effect of environmental care on growth is stronger in the closed economy relative to the open economy. Thus, from our set-up, environmental policy is harmful to growth but environmental sustainability need not be incompatible with continued economic growth. |
| Keywords: | Economic growth, Pollution tax, Capital-output ratio, Open economy, Capital flight, Environmental Economics and Policy, O40, O41, Q56, |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:ags:suaswp:118225&r=env |
| By: | Schoolman, Ethan D.; Ma, Chunbo |
| Keywords: | Environmental Inequality, Hukou System, Pollution, China, Community/Rural/Urban Development, Health Economics and Policy, Resource /Energy Economics and Policy, D63, J15, J61, Q53, R12, R23, |
| Date: | 2011–11–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uwauwp:117809&r=env |
| By: | Thomas Eichner; Rüdiger Pethig |
| Abstract: | This note investigates the suitability of unilateral consumption taxes for alleviating climate change in a two-period two-country general equilibrium model with a finite stock of fossil fuel. We analyze the incidence of a unilateral consumption tax in the first period on world carbon emissions. If countries are identical or if the taxing country imports both fossil fuel and consumption goods in the second period, increases in the tax rate lower first-period carbon emissions in both countries implying a negative rate of carbon leakage. |
| Keywords: | unilateral consumption tax, world emissions, leakage |
| JEL: | H22 Q38 Q58 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:sie:siegen:149-11&r=env |
| By: | William D. Nordhaus (Cowles Foundation, Yale University) |
| Abstract: | This survey examines the history and current practice in integrated assessment models (IAMs) of the economics of climate change. It begins with a review of the emerging problem of climate change. The next section provides a brief sketch of the rise of IAMs in the 1970s and beyond. The subsequent section is an extended exposition of one IAM, the DICE/RICE family of models. The purpose of this description is to provide readers an example of how such a model is developed and what the major components are. The final section discusses major important open questions that continue to occupy IAM modelers. These involve issues such as the discount rate, uncertainty, the social cost of carbon, the potential for catastrophic climate change, algorithms, and fat-tailed distributions. These issues are ones that pose both deep intellectual challenges as well as important policy implications for climate change and climate-change policy. |
| Keywords: | Climate change, Integrated assessment models, Environmental economics, Social cost of carbon, Large-scale mathematical models |
| JEL: | Q5 Q54 C6 H4 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:cwl:cwldpp:1839&r=env |
| By: | Nkonya, Ephraim; Place, Frank; Pender, John; Mwanjololo, Majaliwa; Okhimamhe, Appollonia; Kato, Edward; Crespo, Susana; Ndjeunga, Jupiter; Traore, Sibiry |
| Abstract: | Empirical evidence has shown that farmers can adapt to climate change by using sustainable land and water management (SLWM) practices that provide local mitigation benefits, reducing or offsetting the negative effects of climate change at the level of the plot, farm, or even landscape. However, adaptation to climate change using SLWM practices in sub-Saharan Africa (SSA) remains low. This study was conducted to examine the impact of government policies on adaptation to climate change. |
| Keywords: | Climate change, Sustainability, Water management, Adaptation, local institutions, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1126&r=env |
| By: | Yu-Fu Chen; Michael Funke; Nicole Glanemann |
| Abstract: | The quintessence of recent natural science studies is that the 2°C target can only be achieved with massive emission reductions in the next few years. The central twist of this paper is the addition of this limited time to act into a non-perpetual real options framework analysing optimal climate policy under uncertainty. The window-of-opportunity modelling setup shows that the limited time to act may spark a trend reversal in the direction of low-carbon alternatives. However, the implementation of a climate policy is evaded by high uncertainty about possible climate pathways. |
| Keywords: | Climate policy, carbon dioxide scenarios, non-perpetual real options |
| JEL: | Q51 Q54 D81 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:dun:dpaper:262&r=env |
| By: | Ayuya, Oscar Ingasia |
| Abstract: | Carbon markets are developing world wide with the major aim of environmental protection and poverty alleviation in developing countries. Some carbon sequestration projects have been started in Kenya though it is still not yet a vibrant investment in spite of the available suitable biophysical land. Njoro district has no such project regardless of being affected by deforestation. One inevitable result has been the unpredictable rainfall pattern constituting overall climate change, increased surface run off, the low water levels in river Njoro, loss of biodiversity and the increased poverty in the region. It is still not clear if such projects are to be initiated, the smallscale farmers would be willing to accept and adopt them. There was need therefore, to assess the willingness of small scale farmers to accept and adopt carbon trade tree project in order to understand farmerâs decision making process. The study used multi-stage sampling procedure to select 150 small-scale farmers in Njoro district. Both primary and secondary data sources collected using observations and interviews with the help of a semi-structured questionnaire. Data analysis was done using descriptive statistics, ordinal logit model and the double hurdle model using STATA computer programs. The results indicated that 29% of the farmers practiced tree planting/agro-forestry as the voluntary CDM practice in the study area. On the level of awareness the result indicates that 58% of the farmers were not aware of the project, 23% were aware and correct and 19% of the farmers were aware but wrong signifying low levels of awareness of the CDM project among farmers. Gender, household size, farm debt, attitude towards risk, farm size, land tenure, availability of voluntary CDM and perception of the technology were found to influence the willingness to accept the project. Further, age, extension contacts, attitude towards risk, land tenure and perception towards the technology influenced on the extent the farmer is willing to adopt. The study therefore, recommends policy interventions in increasing awareness, improved training through extension services on agro-environmental programmes, formation of agro-environmental self help groups by farmers and creation of strategies that would improve socio-economic conditions of smallholder farmers in Kenya. Through this, adoption of carbon tree trade would be successful consequently increasing carbon sinks and increased smallholder farm income hence poverty reduction and sustainable development. |
| Keywords: | Environmental Economics and Policy, Farm Management, |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:ags:cmpart:117799&r=env |
| By: | Décio Gazzoni; Gabriel Blanco; Isaias Macedo; Arturo Morales-Acevedo; Anibal Borroto |
| Abstract: | The overall purpose of this study is to help foster the production and use of renewable energy in Latin America and the Caribbean and develop feasible and widely accepted energy efficiency models, by supporting R&D networks aiming to developing and transferring state of the art technology, adapted to the region, on a sustainable basis, considering environmental, economic and social aspects. The document provides an overview of several renewable energy technologies, including present status, potentialities and prospective scenarios; research priorities and potential innovation networks. |
| Keywords: | Energy & Mining :: Energy Efficiency, Energy & Mining :: Renewable Energy, Environment & Natural Resources :: Climate Change, Science & Technology :: New Technologies, Science & Technology :: Research & Development |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:34618&r=env |
| By: | Clemens Breisinger, Olivier Ecker, Perrihan Al-Riffai, Richard Robertson, Rainer Thiele, Manfred Wiebelt |
| Abstract: | This paper provides a model-based assessment of local and global climate change impacts for the case of Yemen, focusing on agricultural production, household incomes and food security. Global climate change is mainly transmitted through rising world food prices. Our simulation results suggest that climate change induced price increases for food will raise agricultural GDP while decreasing real household incomes and food security. Rural nonfarm households are hit hardest as they tend to be net food consumers with high food budget shares, but farm households also experience real income losses given that many of them are net buyers of food. The impacts of local climate change are less clear given the ambiguous predictions of global climate models (GCMs) with respect to future rainfall patterns in Yemen. Local climate change impacts manifest itself in long term yield changes, which differ between two alternative climate scenarios considered, with implications for income and nutrition |
| Keywords: | Climate change, Food security, Hunger, Development, Growth, Yemen, Middle East and North Africa |
| JEL: | C63 C68 O13 O53 Q54 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1747&r=env |
| By: | Ribaudo, Marc; Delgado, Jorge; Hansen, LeRoy; Livingston, Michael J.; Mosheim, Roberto; Williamson, James M. |
| Abstract: | Nitrogen is an important agricultural input that is critical for crop production. However, the introduction of large amounts of nitrogen into the environment has a number of undesirable impacts on water, terrestrial, and atmospheric resources. This report explores the use of nitrogen in U.S. agriculture and assesses changes in nutrient management by farmers that may improve nitrogen use effi ciency. It also reviews a number of policy approaches for improving nitrogen management and identifi es issues affecting their potential performance. Findings reveal that about two-thirds of U.S. cropland is not meeting three criteria for good nitrogen management. Several policy approaches, including fi nancial incentives, nitrogen management as a condition of farm program eligibility, and regulation, could induce farmers to improve their nitrogen management and reduce nitrogen losses to the environment. |
| Keywords: | Reactive nitrogen, nitrogen management, fertilizer, water quality, greenhouse gas, economic incentives, conservation policy, regulation, Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uersrr:118022&r=env |
| By: | Anna Creti (EconomiX-CNRS, University of Paris Ouest, and Ecole Polytechnique,); Pierre-André Jouvet (EconomiX and Climate Economics Chair); Valérie Mignon (EconomiX-CNRS, University of Paris Ouest, and CEPII) |
| Abstract: | The aim of this paper is to investigate the determinants of the carbon price during the two phases of the European Union Emission Trading Scheme (EU ETS). More specifically, relying on daily EU allowance futures contracts, we test whether the carbon price drivers identified for Phase I still hold for Phase II and evolve toward a long-run relationship. Using cointegration techniques and accounting for the 2006 structural break on the carbon market, we show that while a cointegrating relationship exists for both phases of the EU ETS, the nature of this equilibrium relationship is different across the two subperiods, with an increasing role of fundamentals in Phase II. Deriving equilibrium values, we show that the carbon price tends to be undervalued since the end of 2009. |
| Keywords: | EU ETS, carbon price, energy prices, cointegration. |
| JEL: | Q4 C22 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:cec:wpaper:1106&r=env |
| By: | Thierry Bréchet (Université catholique de Louvain, CORE and Chair Lhoist Berghmans in Environmental Economics and Management); Pierre-André Jouvet (EconomiX, Univ. Paris Ouest, Nanterre - La Défense, Climate Economics Chair, Paris); Gilles Rotillon (EconomiX, Univ. Paris Ouest, Nanterre - La Défense.) |
| Abstract: | In this paper we study the optimal growth path and its decentralization in a twosector overlapping-generations model with pollution. One sector (power generation) is polluting and the other (final good) is not. Pollution is regulated by tradable emission permits. The issue is whether the optimal growth path can be replicated in equilibrium with pollution permits, given that some permits must be issued free of charge for the sake of political acceptability. We provide a policy rule that allows optimality and acceptability to be reconciled. |
| Keywords: | general equilibrium, optimal growth, pollution, tradable emission permits, acceptability |
| JEL: | D61 D9 Q28 |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:cec:wpaper:1102&r=env |
| By: | Stéphane De Cara (INRA, UMR 210 Economie Publique INRA-AgroParisTech and Chaire Economie du Climat); Pierre-Alain Jayet (INRA, UMR 210 Economie Publique INRA-AgroParisTech) |
| Abstract: | We propose a quantitative assessment of the marginal abatement costs (MAC) of greenhouse gas emissions from European agriculture and analyze the implications of the non-ETS burden-sharing agreement (BSA) for this sector. This assessment is based on MAC reduced forms, the generic specification of which enables simple parameterization and numerical computations. Such MAC curves are parameterized for each Member State using the outputs of a detailed model of the European agricultural supply. They are then used to compute total and marginal abatement costs involved by the BSA targets, as well as the costeffective effort sharing, the corresponding emission price and abatement costs. The main findings are: (i) flexibility mechanisms such as a cap-and-trade system for agricultural emissions could reduce the total costs of meeting the 10% EU abatement target by a factor two to three relative to the strict implementation of each country’s target, (ii) the corresponding equilibrium emission price is found to be 32-42 €/tCO2eq depending on the assumption regarding business-as-usual emissions, and (iii) a cap-and-trade system with allowances based on the BSA targets would involve substantial transfers from EU-15 countries to New Member States, an important share of which being made of ‘hot air’. |
| Keywords: | Greenhouse gas emissions, Agriculture, Marginal abatement costs, Cap-and-trade system, Methane, Nitrous oxide, European Union |
| Date: | 2011–05 |
| URL: | http://d.repec.org/n?u=RePEc:cec:wpaper:1105&r=env |
| By: | Halkos, George |
| Abstract: | Individuals’ decision to use a particular coastal beach is influenced by their preferences and perceptions as well as beach’s characteristics. This study examines visitors’ attributes and desired site specific characteristics in order to determine the factors affecting willingness to pay for an improvement quality (environment, water as well as recreation activities) program. A contingent valuation survey is carried out in order to evaluate the economic benefits of improving coastal quality of beaches in a coastal line of an area in Central Greece (Volos) where persistent failures to meet the standards of the Blue Flag program are observed. Our empirical findings suggest that the major variables affecting respondents’ willingness to pay were related to income, age, gender, coastal recreational activities and environmental quality of the site as well as to previous environmental behavior and mainly if they had paid for environmental protection in the past. |
| Keywords: | Coastal zone; contingent valuation; economic value of recreation; blue flags |
| JEL: | Q50 N54 Q51 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:35395&r=env |
| By: | Philip Hemmings |
| Abstract: | Offshore natural-gas discoveries have released Israel from complete reliance on imported primary fuels and are allowing for a cleaner energy mix. Furthermore, additional production will soon come on stream, and there is a reasonable chance of new commercially viable gas finds, and possibly of oil too. The authorities have overhauled the system of royalties and taxes, although how best to use the resulting revenues remains the subject of debate. Concerns about competition in the gas sector have risen following the disruption of imports via the pipeline from Egypt, which has strengthened the market position of the lead consortium developing the offshore fields. Competition concerns in the electricity sector have been longstanding due to sluggish reform away from monopoly provision by the state-owned incumbent. As elsewhere, energy use has important environmental side-effects. A comprehensive plan for reducing greenhouse-gas emissions has been developed recently, which relies primarily on energy-efficiency measures and an increase in the share of renewable-electricity product. This Working Paper relates to the OECD 2011 Economic Survey of Israel (www.oecd.org/eco/surveys/Israel).<P>Relever les défis dans le secteur énergétique en Israël<BR>Les découvertes de gaz naturel en mer ont affranchi Israël d’une totale dépendance à l’égard des importations d’énergies primaires et elles permettent au pays de disposer d’une palette énergétique moins polluante. De plus, de nouvelles capacités de production vont bientôt devenir opérationnelles et il y a des perspectives raisonnables de nouvelles découvertes de gaz commercialement viables, et peut-être aussi de pétrole. Les autorités ont revu le système des royalties et taxes, même si la façon d’utiliser au mieux les recettes recueillies reste sujet à débat. Les préoccupations liées à la concurrence dans le secteur gazier se sont accentuées après les perturbations des importations transitant par le gazoduc avec l’Égypte, qui ont renforcé la position sur le marché du consortium pilote développant les gisements offshore. Le problème de concurrence dans le secteur de l’électricité dure depuis longtemps en raison de la lenteur de la réforme en faveur de l’abandon de la position monopolistique de l’opérateur appartenant à l’État. Comme ailleurs, la consommation d’énergie a d’importants effets secondaires sur l’environnement. Un plan d’ensemble de réduction des émissions de gaz à effet de serre a été élaboré récemment, qui s’appuie principalement sur des mesures d’efficacité énergétique et l’augmentation de la part d’électricité produite à partir d’énergies renouvelables. Ce Document de travail se rapporte à l’Étude économique de l’OCDE d’Israël 2011 (www.oecd.org/eco/etudes/Israël). |
| Keywords: | energy, natural gas, renewable energy, energy efficiency, carbon tax, Israel, public transport, Israeli energy demand, Israeli energy supply, electricity generation, greenhouse gases, GHG, solar power, wind power, vehicle emissions, vehicle taxation, gasoline, diesel, electric car, énergie, gaz naturel, énergie renouvelable, gaz à effet de serre, taxes carbone, efficacité énergétique, Israël, demande énergétique israélienne, offre énergétique israélienne, production d?électricité, GES, installations solaires, éoliennes, émissions des véhicules, fiscalité des véhicules, essence, diesel, voiture électrique, transport public |
| JEL: | L94 L95 Q42 Q48 Q53 Q54 Q58 R48 |
| Date: | 2011–12–06 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:914-en&r=env |
| By: | Rüdiger Pethig |
| Abstract: | A small open economy operates a carbon emission trading scheme and subsidizes green energy. Taking cap-and-trade as given, we seek to explain the subsidy as the outcome of a trilateral tug of war between the ‘green’ energy industry, the ‘black’ energy industry and consumers. With parametric functions we fully solve the competitive economic equilibrium and the lobbying Nash equilibrium. We show how the resultant subsidy depends on the political influence of all three lobbying groups and we trace its determinants. Whether consumers have ‘green preferences’ turns out to be crucial for the results. |
| Keywords: | green preferences, fossil fuel, green energy, green energy subsidy,cap-and-trade, overlapping regulation, competitive lobbying |
| JEL: | Q42 Q43 Q52 Q54 D72 D78 H23 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:sie:siegen:150-11&r=env |
| By: | Allwardt, Jennifer |
| Abstract: | The potential of using carbon offset credits from agroforestry projects for farmers in developing areas has become more prevalent in both Clean Development Mechanism and voluntary carbon markets. Since the implementation of the Kyoto Protocol, many international development organizations have been interested in using the Clean Development Mechanism (CDM) to help both mitigate CO2 emissions through agroforestry projects offsets and as a poverty reduction tool. Few organizations that have begun talking with farmers about planting trees for carbon offset credits have been able to tell the farmers how much money they would receive from their new tree growth or the costs they will incur in doing so. For this study, a whole farm budget toolkit was designed to help fill this gap and to help evaluate payment methods for carbon offset credits in agroforestry projects. This toolkit is intended to be used by development assistance organizations and farmers starting carbon credit programs. It gives a rough estimate of payments based on a farmerâs or groupâs unique situation. For testing purposes, previous agroforestry projects were entered into the toolkit to evaluate the benefits accruing to farmers using data on carbon credit payment methods for two previous agroforestry projects in Africa. The toolkit was also field tested in Kenya with individual farmers and a farmersâ group. |
| Keywords: | agroforestry, budget toolkit, carbon credits, Clean Development Mechanism, payment methods, smallholder farmers, Agricultural Finance, Community/Rural/Urban Development, International Development, Land Economics/Use, O13, O22, R30, Q54, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:midagr:118497&r=env |
| By: | Giorgio Garau; G. Mandras; L. Schirru |
| Abstract: | Environment and sustainability are key issues for the policy maker. A policy should be first designed and realistically inserted in his proper context (regional, national, european) in order to be correctly assessed. After that, suitable models need to be choose consistently with the policy context and with the evaluation purpose, to make easier the policy maker task. The aim of this paper is twofold. Firstly to propose a Statistical Information System (SIS) approach in order to correctly write the policy and verify its internal and external consistency, secondly to conceive model building with an evaluation purpose and not only with an analytical one. It means that the model could be able to produce indicators useful to monitoring the policy other then macro indicators whose function is to verify its long term sustainability. We apply these concepts to a specific regional environmental policy - the premium/penalty system conceived to implement the separate collection in waste management. The SIS approach allows us to verify the quality of disposable information, to complete and eventually integrate them with ad hoc surveys, in order to build the environmental extended Social Accounting Matrix, the ESAM. Our modeling, evaluation oriented, aims at verify the policy effects in the long term, i.e. looking at structural change concerning all institutional sectors (households, firms and government). |
| Keywords: | Statistical Information System; environmentally extended SAM; CGE models; environmental policies |
| JEL: | Q56 D58 Q58 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:cns:cnscwp:201122&r=env |
| By: | Wallander, Steven; Claassen, Roger; Nickerson, Cynthia J. |
| Abstract: | The recent 9-billion-gallon increase in corn-based ethanol production, which resulted from a combination of rising gasoline prices and a suite of Federal bioenergy policies, provides evidence of how farmers altered their land-use decisions in response to increased demand for corn. As some forecasts had suggested, corn acreage increased mostly on farms that previously specialized in soybeans. Other farms, however, offset this shift by expanding soybean production. Farm-level data reveal that the simultaneous net expansion of corn and soybean acreage resulted from a reduction in cotton acreage, a shift from uncultivated hay to cropland, and the expansion of double cropping (consecutively producing two crops of either like or unlike commodities on the same land within the same year). |
| Keywords: | Agricultural Resource Management Survey (ARMS), bioenergy, ethanol, indirect effects, land use, corn production, environmental impacts, Environmental Economics and Policy, Land Economics/Use, Resource /Energy Economics and Policy, |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uersib:117982&r=env |
| By: | Tiwari, Sailesh; Bhattarai, Keshav |
| Abstract: | International migration has increased rapidly in recent decades and this has been accompanied by a remarkable increase in transfers made by migrants to their home countries. This paper investigates the effect of the rural economic growth brought about by migration and remittances on Nepal's Himalayan forests. The authors assemble a unique village-panel dataset combining remote sensing data on land use and forest cover change with data from the census and multiple rounds of living standards surveys to test various inter-relationships between population, economic growth and forests. The results suggest that rural economic growth spurred by remittances has had an overall positive impact on forests. The paper also finds that remittances caused an increase in rural wages and an increase in income, but a decrease in land prices. Considered together, however, the relationship between forests and remittances is driven largely through the income channel, indicating that the demand for amenities provided by forests in the rural Nepali setting may have been more important than factor prices in influencing land use changes for the period of the study. |
| Keywords: | Population Policies,Environmental Economics&Policies,Forestry,Climate Change and Environment,Wildlife Resources |
| Date: | 2011–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5907&r=env |
| By: | Thomas Heyd |
| Abstract: | Paradoxically, knowledge of the increasing certainty about climate change, and of the severe consequences of this phenomenon for large portions of the world population, may lead individuals and communities to fall into a paralysing defeatism. Such defeatism, even more paradoxically, may be accompanied by complacency, due to assumption that, on the basis of our societies’ institutional, scientific and technical capabilities, we can wait until problems really become evident. Both the defeatist and the complacent attitude may lead to failure in the application of entirely feasible mitigation and adaptation measures, with consequent much increased probabilities of economic, human and ecological costs. In view of the degree to which these attitudes are present in our societies we may wonder whether inaction may be justifiable on our part despite awareness of stringent responsibilities. Here I argue that, even if it may appear that, under these conditions, we cannot take direct action on our responsibilities regarding climate change, we still have responsibilities to act at another level. |
| Keywords: | Climate Change, Political Inaction, Responsibilities. |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:bcc:wpaper:2011-13&r=env |
| By: | Philippe Delacote (Researcher at INRA - Laboratoire d'Economie Forestière.) |
| Abstract: | The factors of deforestation at a global level have been widely studied in the empirical economic literature. However, the high heterogeneity among countries considerably limits the overall significance of the results. Using quantile approach, we show that some major deforestation factors are more prevalent in high deforestation countries, giving the insight that those factors have been under-estimated in previous studies. |
| Keywords: | Quantile analysis, Deforestation, Economic development, Environmental Kuznets Curve |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:cec:wpaper:1110&r=env |
| By: | Zhao, Xiaoli; Li, Na; Ma, Chunbo |
| Abstract: | Residential energy consumption (REC) is the second largest energy use category (10%) in China and urban residents account for most of the REC. Understanding the underlying drivers of variations of urban REC thus helps to identify challenges and opportunities and provide advices for future policy measures. This paper applies the logarithmic mean Divisia index (LMDI) to a decomposition of Chinaâs urban REC during the period of 1998-2007 at disaggregated product/activity level using data collected from a wide range of sources. Our results have shown an extensive structure change towards a more energy-intensive household consumption structure as well as an intensive structure change towards high-quality and cleaner energy such as electricity, oil, and natural gas, which reflects a changing life style and consumption mode in pursuit of a higher level of comfort, convenience and environmental protection. We have also found that Chinaâs price reforms in the energy sector have contributed to a reduction of REC while scale factors including increased urban population and income levels have played a key role in the rapid growth of REC. We suggest that further deregulation in energy prices and regulatory as well as voluntary energy efficiency and conservation policies in the residential sector should be promoted. |
| Keywords: | Residential Energy Consumption, Index Decomposition Analysis (IDA), China, Consumer/Household Economics, Resource /Energy Economics and Policy, Q32, Q43, |
| Date: | 2011–11–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uwauwp:117810&r=env |
| By: | Sebastian Miller; Bok-Keun Yu |
| Abstract: | This paper surveys climate change funds related to LAC countries and attempts to derive some implications through performance analyses of these funds. The performance analyses show that the following matters should be addressed: increases in participation of the IDB as an agent in the projects for the LAC region, enlargement of the scale of co-financing in the IDB-brokered cases as well as in the LAC region, and reinforcement of the linkage between the SECCI Funds and international climate change funds. Further research as to why the level of co-financing in LAC countries is lower than in other regions would also be of interest. |
| JEL: | F30 G20 Q50 |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:idb:wpaper:4747&r=env |
| By: | Inter-American Development Bank (IDB) |
| Abstract: | This presentation discusses considerations in designing a public sector energy efficiency and conservation program in Jamaica. Reduction in public sector consumption will reduce government energy expenditures, mitigate greenhouse gas emissions, and stimulate a clean energy industry. It includes the following: 1) Education and awareness of government workers regarding energy use and conservation; 2) Operation and maintenance of existing and new equipment to optimize performance; 3) Energy conservation through improved government building envelop; 4) Standard specifications for energy end-use technologies and applications; 5) Building accountability into facility energy management and public sector wide consumption; 6) Institutional design that involves public-private partnership in program implementation. |
| Keywords: | Energy & Mining, energy efficiency, energy policy, Jamaica, energy markets, clean energy, public sector conservation & efficiency |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:38418&r=env |
| By: | Julien Chevallier (Université Paris Dauphine); Yannick Le Pen (Université Paris Dauphine); Benoît Sévi (Université de la Méditerranée Aix-Marseille II) |
| Abstract: | To improve risk management in the European Union Emissions Trading Scheme (EU ETS), the European Climate Exchange (ECX) has introduced option instruments in October 2006. The central question we address is: can we identify a potential destabilizing effect of the introduction of options on the underlying market (EUA futures)? Indeed, the literature on commodities futures suggest that the introduction of derivatives may either decrease (due to more market depth) or increase (due to more speculation) volatility. As the identification of these effects ultimately remains an empirical question, we use daily data from April 2005 to April 2008 to document volatility behavior in the EU ETS. By instrumenting various GARCH models, endogenous break tests, and rolling window estimations, our results overall suggest that the introduction of the option market had the effect of decreasing the level of volatility in the EU ETS while impacting its dynamics. These findings are fairly robust to other likely influences linked to energy and commodity markets. |
| Keywords: | EU ETS, option prices, volatility, GARCH, rolling estimation, endogenous structural break detection |
| JEL: | G13 G18 Q57 Q58 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:cec:wpaper:1107&r=env |
| By: | L. Lambertini; G. Leitmann |
| Abstract: | We adopt a stepwise approach to the analysis of a dynamic oligopoly game in which production makes use of a natural resource and pollutes the environment, starting with simple models where firms' output is not a function of the natural resource to end up with a full-fledged model in which (i) the resource is explicitly considered as an input of production and (ii) the natural resource and pollution interact via the respective state equations. This allows us to show that the relationship between the welfare properties of the economic system and the intensity of competition is sensitive to the degree of accuracy with which the model is constructed. |
| JEL: | C73 H23 L13 O31 Q2 Q3 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:bol:bodewp:wp798&r=env |
| By: | Appolloni, Andrea; D'Amato, Alessio; Wenjuan, Cheng |
| Abstract: | Public purchasing authorities are in a leading position for the introduction, promotion and development of green procurement. Indeed, the public sector can influence green procurement both by designing suitable policies and by driving “green” markets through the significant share of public purchases on GDP. The European Commission (EC) has emphasized the importance of cost-efficient GPP and, in compliance with the EU’s Integrated Product Policy (IPC), Member States have been encouraged to devise national action plans. As a result, many countries have already adopted steps in the direction of greening public purchases. The aim of our paper is twofold: first, we focus on the state of the art in terms of the EU and Italian Legislation; then, we highlight open questions related to crucial issues in GPP implementation, with a particular attention to the design of green tenders and awarding criteria to account for environmental quality in public purchasing procedures. |
| Keywords: | Green Public Procurement/Purchasing (GPP); Italy; EU; Legislation and Implementation |
| JEL: | H57 L51 A13 G18 Q01 |
| Date: | 2011–10–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:35346&r=env |
| By: | Skurray, James H.; Pandit, Ram; Pannell, David J. |
| Abstract: | The development of a market in groundwater usage rights can be inhibited by constraints arising from the institutional context. Such impediments may reduce the potential gains from trade and may generate high transaction costs for prospective traders. We analyse the regulations and policies influencing groundwater trading in a case-study area â the Gnangara groundwater system around Perth, Western Australia â and identify significant impediments to a groundwater market. Property rights are found to be conditional, temporary, and vulnerable to amendment. Regulatory approval is required for all trades. Facilitating infrastructure is lacking, and price information is unavailable. The limitation of transfers to within management area boundaries that reflect land ownership and use rather than hydrological realities eliminates much of the potential for gains from trade. Over-allocation and weak monitoring also impede the development of a market. The current management system is likely to obscure any unmet demand for water-rights transfers between users and usage-types. While we apply the analysis to an example location, the analytical approach is broadly transferable. |
| Keywords: | Agricultural and Food Policy, Environmental Economics and Policy, Institutional and Behavioral Economics, Land Economics/Use, Political Economy, Public Economics, Resource /Energy Economics and Policy, Q15, Q25, Q28, Q38, Q56, Q57, Q58, R14, R52, H41, H23, H11, |
| Date: | 2011–11–14 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uwauwp:117825&r=env |
| By: | Boris Solier (Paris-Dauphine University (LEDa-CGEMP), Climate Economics Chair and ADEME.); Pierre-André Jouvet (EconomiX-CNRS, University of Paris Ouest, and Climate Economics Chair) |
| Abstract: | This article investigates the link between wholesale electricity prices in Europe and the CO2 cost, i.e. the price of the European Union Allowances (EUA), over the two first phases of the EU ETS. We set up a theoretical and an empirical model to estimate to what extent daily fluctuations of CO2 costs may have impacted electricity prices. Regarding estimation results for the first phase of the EU ETS, about 42% of estimated pass-through rates appear to be statistically significant, while only one third of them are statistically different from zero in the second phase. We try to improve those results by proposing alternatives estimates based on the compliance periods of the EU ETS. |
| Keywords: | EU ETS, CO2 costs pass-through, Electricity prices, Spot markets |
| JEL: | C22 C58 G1 L94 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:cec:wpaper:1108&r=env |
| By: | Stéphane De Cara (UMR 210 Economie Publique, INRA-AgroParisTech.); Anne Fournier (UMR 7235 EconomiX-CNRS, University of Paris Ouest); Carl Gaigné (UMR 1302 SMART, INRA) |
| Abstract: | In this paper, we study the impact of urbanization on the location of agricultural production and the GHG emissions related to transportation. We develop an economic geography model where the location of agricultural activities and urban population are endogenous. We show that increasing yields induce the spatial concentration of agricultural production in the most urban-crowded region if collection costs are relatively low and in the smallest one otherwise. In addition, we find that inter-regional trade in agricultural commodities may be desirable to reduce GHG emissions, except when urban population is equally split between cities. Finally, we highlight that the market may induce an excess of agricultural agglomeration when yields are high and/or collection costs are low. |
| Keywords: | Urbanization, Agricultural location, Transport, Greenhouse gas, Food miles |
| JEL: | F12 Q10 Q54 Q56 R12 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:cec:wpaper:1109&r=env |
| By: | Nasreddine AMMAR; Ahmed ENNASRI; Marc Willinger |
| Abstract: | The ambient tax is often considered as an effcient instrument to achieve a rst best outcome of ambient pollution when the regulator is less informed than the polluters. Since the ambient tax was never imple- mented in the eld, empirical evidence is missing. Available experimental ndings provide mixed evidence: effciency is higher under external dam- age, i.e. if ambient pollution affects non-polluters (Spraggon, 2002, 2003) than under internal damage, i.e. if ambient pollution a¤ects polluters themselves (Cochard et al., 2005). Since these two types of experiments relied on very different designs, it is worthwhile to compare them under a common experimental design. Our main nding is that the ambient tax is equally effcient under external damage than under internal damage. |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:lam:wpaper:11-25&r=env |
| By: | Jie He (Département d'économique, GREDI, Université de Sherbrooke, Canada); Wing-tat Hung (Department of Civil and Structural Engineering, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong SAR) |
| Abstract: | In this paper, we analyzed data addressing people’s perceptions of the importance of selection criteria for vehicle-related emissions control policies and measures based on a three-round survey organized during three professional air quality control international conferences in 2006 through 2010. More than 300 participants were solicited to answer a ranking questionnaire. The results from the simple tabulation, figures and a rigorous statistical model revealed the divergence in people’s perceptions of the importance of criteria guiding emissions control policies and selection of measures, and we attribute these differences in opinion to differences in people’s working backgrounds and the economic and political conditions in their countries. Our multinomial logit model estimation pushed our investigation further and provided a more direct illustration of the potential determining role of each of these background factors. The estimations found that economic and political differences among countries seem to result in more divergence of opinion about the importance of the criteria. Furthermore, some criteria, particularly less classical ones such as ability to administer changes and time to reach effectiveness, showed more divergence in people’s opinions than classical criteria, such as cost, effectiveness etc. |
| Keywords: | perception, multi-criteria decision making, vehicle emission control, survey, multinomial-logit model, policy and measures |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:shr:wpaper:11-18&r=env |
| By: | Abdoul CISSE (IFREMER-Guyane et CEREGMIA, UAG); Sophie GOURGUET (IFREMER, UMR AMURE et CNRS-CERSP-MNHN); Luc DOYEN (CNRS-CERSP-MNHN); Fabian BLANCHARD (IFREMER-Guyane); Jean-Christophe PEREAU (GREThA, CNRS, UMR 5113, Université de Bordeaux) |
| Abstract: | This paper offers a theoretical and empirical modeling for ecosystem-based fishery management (EBFM). A multi-species and multi-fleets model integrating Lokta-Volterra trophic dynamics and profit functions is developed for the coastal fishery of French Guiana. This small-case fishery constitutes a challenging example with high fish biodiversity, several non selective fleets and a potentially increasing local food demand due to demographic pressure. The dynamic model is calibrated with thirteen species and four fleets using catch and effort data on a monthly basis from 2006 to 2009. Several contrasting fishing scenarios including status quo, total closure, economic and viable strategies are simulated and compared from both biodiversity preservation and socio-economic performance viewpoints. We show that fishing outputs including food supply and profitability of fleets can be sustained although a significant loss of biodiversity cannot be avoided. |
| Keywords: | Small-scale fishery, biodiversity, sustainability, profitability, food security, multi-species, multi-fleets |
| JEL: | Q22 Q56 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:grt:wpegrt:2011-38&r=env |
| By: | Jean-Marie Baland (Center for Research in the Economics of Development, University of Namur); Sanghamitra Das (Indian Statistical Institute); Dilip Mookherjee (Boston University) |
| Abstract: | This paper summarizes findings from a decade-long project on forest degradation in the mid-Himalayan region of India and Nepal. The analysis is based on LSMS data for Nepal and field work in Indian states of Uttaranchal and Himachal Pradesh comprising sample surveys of forests, households and village communities, besides commissioned anthropological studies for select villages. The purpose was to ascertain the nature and magnitude of deforestation and degradation from ground-level forest measurements, its implications for living standards of local communities, the contribution of different factors commonly alleged such as local poverty, inequality, economic growth, demographic changes, property rights and lack of collective action by local communities. Principal findings, policy implications and questions for future research are discussed. |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:nam:wpaper:1116&r=env |
| By: | Alvaro Calzadilla, Katrin Rehdanz ,Richard S.J. Tol |
| Abstract: | Water and agriculture are intrinsically linked. Water is essential for crop production and agriculture is the largest consumer of freshwater resources. However, this link is commonly ignored by economic models mainly because water use is not reported in the national economic accounts. Few regions have markets for water. This paper describes the new version of GTAP-W, a multi-region, multi-sector computable general equilibrium model of the world economy. The new version of GTAP-W distinguishes between rainfed and irrigated agriculture and introduces water as an explicit factor of production for irrigated agriculture. Moreover, the new production structure accounts for substitution possibilities between irrigation and other primary factors. The new model has been used to study a variety of topics including: irrigation efficiency, sustainable water use, climate change and trade liberalization. This paper is a technical description of the data and features added to the standard GTAP model |
| Keywords: | Computable General Equilibrium, Irrigation, Water Policy |
| JEL: | D58 Q17 Q25 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1745&r=env |
| By: | De Perthuis, Christian |
| Abstract: | Dans cette contribution, nous examinons les voies d’un renforcement de la régulation du marché européen du carbone, outil central retenu par l’Union européenne pour atteindre ses objectifs climatiques et à ce jour premier système d’échange de permis au monde. Un tel renforcement implique une harmonisation et une centralisation plus poussées des fonctions classiques de surveillance d’un marché (sécurité des infrastructures, transparence de l’information, traque des positions dominantes, …), difficiles à mettre en œuvre dans le contexte institutionnel européen. Mais pour envoyer un signal permettant d’orienter l’économie sur la cible d’une réduction par cinq des émissions européennes à l’horizon 2050, il faudrait aller plus loin : créer un organisme indépendant sur le modèle d’une banque centrale avec une capacité d’intervention et une crédibilité suffisantes pour modifier les anticipations des industriels afin qu’ils réalisent aujourd’hui les investissements nécessaires pour mettre l’économie européenne sur la voie de la décarbonation. |
| Keywords: | Marchés du carbone; Union européenne; banque centrale du carbone; |
| JEL: | Q56 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ner:dauphi:urn:hdl:123456789/7764&r=env |