nep-env New Economics Papers
on Environmental Economics
Issue of 2012‒01‒18
twenty-six papers chosen by
Francisco S.Ramos
Federal University of Pernambuco

  1. Achieving a sustainable automotive sector in Asia and the Pacific: Challenges and opportunities for the reduction of vehicle CO2 emissions By Masato Abe
  2. Environmental Impacts of Emerging Biomass Feedstock Markets: Energy, Agriculture, and the Farmer By Rebecca S. Dodder; Amani Elobeid; Timothy L. Johnson; P. Ozge Kaplan; Lyubov A. Kurkalova; Silvia Secchi; Simla Tokgoz
  3. Adaptation to climate change: Formulating policy under uncertainty By Leo Dobes
  4. Dynamic Activity Analysis Model Based Win-Win Development Forecasting Under the Environmental Regulation in China By Shiyi Chen; Wolfgang Karl Härdle
  5. Allocating Costs of Environmental Management among Generations: A Case of Environmental Liabilities in Transition Economies By Satoru Komatsu; Andrey Kalugin; Shinji Kaneko
  6. Environmental policy and trade performance: Evidence from China By Laura Hering; Sandra Poncet
  7. Assessing environmental management in agriculture By Bachev, Hrabrin
  8. Investement inflows and sustainable development in a natural resource-dependent economy By Angelo Antoci; Paolo Russu; Elisa Ticci
  9. Can Dispersed Biomass Processing Protect the Environment and Cover the Bottom Line for Biofuel? By Egbendewe-Mondzozo, Aklesso; Swinton, Scott M.; Bals, Bryan D.; Dale, Bruce E.
  10. Investment and Environmental Regulation: Evidence on the Role of Cash Flow By Evangelina Dardati; Julio Riutort
  11. Why Do Environmental Taxes Work Better in Developed Countries? By Coria, Jessica; Villegas-Palacio, Clara; Cárdenas, J.C.
  12. Le migrazioni ambientali nel Mediterraneo: il caso studio dei paesi del Medio Oriente e del Nord Africa By Venditto , Bruno; Caruso , Immacolata
  13. Green growth, technology and innovation By Dutz, Mark A.; Sharma, Siddharth
  14. Valuing financial, health, and environmental benefits of Bt cotton in Pakistan By Shahzad Kouser; Matin Qaim
  15. Cost-Benefit Analysis in a Framework of Stakeholder Involvement and Integrated Coastal Zone Modeling By Kinell, Gerda; Söderqvist, Tore; Elmgren, Ragnar; Walve, Jacob; Franzén, Frida
  16. The Effect of Trade Openness on Deforestation: Empirical Analysis for 142 Countries By Tetsuya , Tsurumi; Shunsuke , Managi
  17. Environmental justice in agricultural systems. An evaluation of success factors and barriers by the example of the Philippine farmer network MASIPAG By Stefanie Glotzbach
  18. Climate Change, Crop Yields, and Internal Migration in the United States By Shuaizhang Feng; Michael Oppenheimer; Wolfram Schlenker
  19. How Should Journal Quality be Ranked? An Application to Agricultural, Energy, Environmental and Resource Economics By Michael McAleer; Chia-Lin Chang
  20. Who’s Going Green and Why? Trends and Determinants of Green Investment By Abdoul Aziz Wane; Luc Eyraud; Changchang Zhang; Benedict J. Clements
  21. The bioenergies development: the role of biofuels and the CO2 price By Pierre-Andre Jouvet; Frederic Lantz; Elodie Le Cadre
  22. The Costs of Disposal and Recycling. An Application to Italian Municipal Solid Waste Services By Graziano Abrate; Fabrizio Erbetta; Giovanni Fraquelli; Davide Vannoni
  23. Natural Resources, Conflict and Democratization By Enrique Calfucura
  24. Agricultural insurances based on meteorological indices: realizations, methods and research challenges By Antoine Leblois; Philippe Quirion
  25. Cambio climático en América Latina y el Caribe: Riesgos para el sector de las microfinanzas y oportunidades para la adaptación: 2011 By María Elena Gutierrez; Xavier Mommens
  26. Effects of Demographics and Attitudes on WTP for Fuel Import Reductions through Ethanol Purchases By Jensen, Kimberly L.; Clark, Christopher D.; English, Burton C.

  1. By: Masato Abe (Economic and Social Commission for Asia and the Pacific)
    Abstract: This working paper analyses the contribution of the Asia-Pacific automotive sector to greenhouse gas (GHG) emissions, and the challenges and opportunities facing the sector in efforts to reduce those emissions, primarily carbon dioxide (CO2). The main purpose of this paper is to identify recommendations for appropriate policies and strategies as well as for regional cooperation, to ensure that future developments in the automotive sector contribute to mitigating and adapting to climate change.
    Keywords: climate change, vehicle carbon emission, automotive sector development, economic development
    JEL: F1
    Date: 2011–12
  2. By: Rebecca S. Dodder; Amani Elobeid (Center for Agricultural and Rural Development (CARD); Food and Agricultural Policy Research Institute (FAPRI)); Timothy L. Johnson; P. Ozge Kaplan; Lyubov A. Kurkalova; Silvia Secchi; Simla Tokgoz
    Abstract: The tighter linkages between energy and crop markets due to recent climate and energy legislation in the US have large potential environmental impacts beyond carbon sequestration and climate mitigation. These range from effects on water quality and quantity, soil erosion, habitat and biodiversity preservation. These impacts are very location and management-decision specific, as they are the product of atomistic decisions and depend on soil and landscape specific variables. In order to fully understand the effects of biomass markets, the new and stronger linkages and feedback effects between national- and global-scale energy and commodity markets must be properly understood and identified using an integrated perspective. We discuss the various interactions between agricultural and energy markets and their environmental impacts for existing biomass crops and detail how these interactions may be strengthened with the emergence of corn stover as a second generation biofuel feedstock. The tighter coupling of land use and management and energy systems needs to be accounted for to ensure that we have accurate indicators of the sustainability of biomass as an energy resource.
    Keywords: Energy and Commodity markets linkages, Integrated energy system assessment, Environmental impacts, Biofuels.
    Date: 2011–12
  3. By: Leo Dobes (Crawford School of Economics and Government, The Australian National University)
    Abstract: Economists were able to formulate and recommend policy approaches for reducing emissions of greenhouse gases (mitigation) by drawing on an existing body of economic theory related to externalities. However, no comparably straightforward approach has yet emerged in the adaptation literature, possibly due to the diffuse nature of climatic effects that may occur in very diverse geographical locations. By acknowledging that the hallmark of future climate change effects is uncertainty, rather than readily identifiable and deterministic outcomes, it is possible to formulate coherent policy approaches. Recognising that there are differing degrees of uncertainty is a key aspect to making policy formulation more realistic.
    Keywords: adaptation, climate change, risk, uncertainty, unknown unknowns
    JEL: G11 H43 O44 Q54
    Date: 2012–01
  4. By: Shiyi Chen; Wolfgang Karl Härdle
    Abstract: Porter Hypothesis states that environmental regulation may lead to win-win opportunities, that is, improve the productivity and reduce the undesirable output simultaneously. Based on directional distance function, this paper proposes a novel dynamic activity analysis model to forecast the possibilities of win-win development in Chinese Industry between 2009 and 2049. The evidence reveals that the appropriate energy-saving and emission-abating regulation will result in both the improvement in net growth of potential output and the steadily increasing growth of total factor productivity. This favors Porter Hypothesis.
    Keywords: Dynamic Activity Analysis Model, Energy-Saving and Emission-Abating, Environmental Regulation, Win-Win Development
    JEL: D24 O47 Q25 Q32
    Date: 2012–01
  5. By: Satoru Komatsu (Graduate School for International Development and Cooperation, Hiroshima University); Andrey Kalugin (Graduate School for International Development and Cooperation, Hiroshima University); Shinji Kaneko (Graduate School for International Development and Cooperation, Hiroshima University)
    Abstract: The objective of this paper is to examine cost allocation in relation to remediating environmental liability issues in Russia, where significant environmental damages, continuing from the Soviet era, present serious impediments to pursuing sustainable development. The research attempts to highlight citizensf preferences for remediating facilities and sites with environmental liabilities, and elicits preference differences among citizens using choice experiment methods. Intergenerational issues are involved in addressing environmental liabilities in transition economies because the causes and effects are spread among generations. Therefore, evaluating citizensf preferences provides more policy implications for future remediation initiatives. The econometric analysis reveals that citizens demonstrate positive preferences for reducing pollution of drinking water and soil decontamination. The research also suggests that the households with higher incomes, older household heads (or spouses), and more young children have higher preferences for remediating environmental liabilities in Russia. Estimation of the marginal willingness to pay (MWTP) for age and income segments of the households allows the government to determine a suitable taxation policy. The findings provide new insights on cost allocation in relation to remediating environmental damages in transition economies that have suffered from these serious environmental legacies.
    Keywords: Environmental management, Willingness to pay, Preference, Generation, Transition economics
    JEL: O13 P28 Q56
    Date: 2011–12
  6. By: Laura Hering; Sandra Poncet
    Keywords: Export performance, spillovers
    JEL: F1 A A A
    Date: 2011–12
  7. By: Bachev, Hrabrin
    Abstract: This paper incorporates interdisciplinary New Institutional Economics and suggests a holistic framework for assessing the forms and efficiency of environmental management in agriculture. First, it defines environmental management as a specific system of social order regulating behaviour and relations of various agents related to natural environment, and environmental management in agriculture as eco-management associated with agricultural production. Second, it specifies spectrum of modes and mechanisms of eco-management comprising: institutional environment, market, private, collective, public and hybrid. Third, it suggests stages in analysis and improvement of environmental management in agriculture including: identification of problems, and risks associated with natural environment; assessment of efficiency of available and feasible modes, and specifying cases of market, private, and public failures; assessment of comparative efficiency of alternative modes for new public intervention and selection of the most efficient one(s). Forth, it classifies personal, institutional, technological, natural, and transaction costs factors of management choice. Finally, it builds a principle governance matrix with the most effective market, private, and public modes taking into account the critical dimensions of eco-activity and transactions (appropriability, assets specificity, uncertainty and frequency), and their potential to coordinate and stimulate eco-activities, meet preferences and reconcile conflicts of individuals, protect eco-rights and investments, overcome uncertainty and risk, assure socially desirable level of environmental protection, and minimize overall (implementing, third-party and transacting) costs.
    Keywords: environmental and natural resources governance; institutions; market; private; public and hybrid modes; agriculture
    JEL: O18 Q28 Q24 O13 Q12 Q25 Q18 Q38 R58 O17 Q13 Q15
    Date: 2012–01–01
  8. By: Angelo Antoci; Paolo Russu; Elisa Ticci
    Abstract: In the current age of trade and financial openness, remote and poor local economies are becoming increasingly exposed to inflows of external capital. The new investors - enjoying lower credit constraints than local dwellers - might play a propulsive role for the local development. At the same time, inflows of external capitals can produce environmental externalities on local natural resource-dependent activities. We analyze a two-sector model where both sectors damage the environment but only one relies on natural resources. We assess under which conditions the coexistence of the two sectors is compatible with sustainable development and we investigate the effects of environmental regulation and of external capital investment incentives on the welfare of the local populations.
    Keywords: foreign direct investments, environmental externalities, poverty.
    JEL: D62 F21 F43 O41 O44 Q20
    Date: 2011–04
  9. By: Egbendewe-Mondzozo, Aklesso; Swinton, Scott M.; Bals, Bryan D.; Dale, Bruce E.
    Abstract: This paper compares environmental and profitability outcomes for a centralized biorefinery for cellulosic ethanol that does all processing versus a biorefinery linked to a decentralized array of local depots that pretreat biomass into concentrated briquettes. The analysis uses a spatial bioeconomic model that maximizes predicted profit from crop and energy products, subject to the requirement that the biorefinery must be operated at full capacity. The model draws upon biophysical crop input-output coefficients simulated with the EPIC model, as well as input and output prices, spatial transportation costs, ethanol yields from biomass, and biorefinery capital and operational costs. The model was applied to 82 cropping systems simulated across 37 sub-watersheds in a 9-county region of southern Michigan in response to ethanol prices simulated to rise from $1.78 to $3.36 per gallon. Results show that the decentralized local biomass processing depots lead to lower profitability but better environmental performance, due to more reliance on perennial grasses than the centralized biorefinery. Simulated technological improvement that reduces the processing cost and increases the ethanol yield of switchgrass by 17% could cause a shift to more processing of switchgrass, with increased profitability and environmental benefits.
    Keywords: Biomass production, bioenergy supply, cellulosic ethanol, environmental trade-off analysis, bioeconomic modeling, EPIC, spatial configuration, local biomass processing, Crop Production/Industries, Environmental Economics and Policy, Production Economics, Resource /Energy Economics and Policy, Q16, Q15, Q57, Q18,
    Date: 2011–12
  10. By: Evangelina Dardati; Julio Riutort
    Abstract: We exploit the heterogeneity in pollution permits allocation and the variation in the permits price to identify a new channel by which cap-and-trade programs can affect firm decisions: they may affect investment through the impact of free pollution permits on the firms cash flow. A firm with a permit allocation higher than its emissions will have a higher cash inflow if the price of permits increases, whereas a firm whose emissions are higher than its permit allocation will have a higher cash outflow if the price of permits increases. In the margin they are both paying the same for pollution but the cash flow consequences of the change in permit prices differ. Using data from investor-owned utilities participating in the US SO2 program, we find that for smaller firms the permit cash flow is positively related to capital expenditures. Small firms with a high permit cash flow invest more tan small firms with a lower permit cash flow. This effect is consistent with smaller firms in this industry facing financial constraints.
    Date: 2011
  11. By: Coria, Jessica (Department of Economics, School of Business, Economics and Law, Göteborg University); Villegas-Palacio, Clara (Facultad de Minas, Universidad Nacional de Colombia - Sede Medellin); Cárdenas, J.C. (Dept of Economics, Universidad de los Andes, Colombia)
    Abstract: We compare of the performance of emission taxes between Colombia and Sweden in an experimental setting where subjects are regulated through environmental taxes and had to decide on emission levels, compliance behavior, and adoption of an environmentally friendly technology. Our design allows us to analyze the role of variations in the stringency of the policy enforcement by regulatory agencies in two different cultural contexts. In line with previous literature that emphasizes the role of social norms and intrinsic motivations explaining compliance behavior, we find that actual emissions and tax underreporting are lower than predicted by traditional models that are solely based on self-interested preferences. However, we find that for an equivalent monitoring stringency, there are no statistically significant differences in emission levels and compliance behavior between Colombian and Swedish subjects. This is to say that despite the positive effect of social norms enhancing compliance, a more stringent enforcement remains as an important mechanism to induce firms to comply with the regulation.<p>
    Keywords: laboratory experiments; emission taxes; imperfect monitoring; technology adoption; developing countries; cross-country comparison; Colombia; Sweden.
    JEL: C91 L51 Q58
    Date: 2012–01–03
  12. By: Venditto , Bruno; Caruso , Immacolata
    Abstract: The study offer a contribution to the analysis of the problems linked to the environmental migration focusing on a specific Mediterranean area, that of the Middle East and Northern Africa. After a brief analysis of the socio-economic and environmental context, used to describe the vulnerability features of the area, the studies will assess the regional migration system particularly the so called "forced migrants". Due to the lack of an accepted common international definition of environmental refugees, following the most recent literature in this study we have used the definition of forded migration to assess the environmental migration. This in fact, among the causes of migration considers not only the "physical environment" but a plethora of socio economic factors which interact among themselves and force people to migrate. In this definitions we include: Internal Displaced Persons, forced to move for the modification of the habitat where they live caused by natural or human disasters but also Migrants and IDPs forced to move due to the implementation of developmental project such as the construction of mega infrastructure such as dams, or the mining and deforestation activities, as well as the the migrants who sick asylum due to conflicts, civil wars or internal persecution
    Keywords: Migration; Environment; DEvelopment
    JEL: Q50 O15 Q01
    Date: 2011–12
  13. By: Dutz, Mark A.; Sharma, Siddharth
    Abstract: The paper explores existing patterns of green innovation and presents an overview of green innovation policies for developing countries. The key findings from the empirical analysis are: (1) frontier green innovations are concentrated in high-income countries, few in developing countries but growing; (2) the most technologically-sophisticated developing countries are emerging as significant innovators but limited to a few technology fields; (3) there is very little South-South collaboration; (4) there is potential for expanding green production and trade; and (5) there has been little base-of-pyramid green innovation to meet the needs of poor consumers, and it is too early to draw conclusions about its scalability. To promote green innovation, technology and environmental policies work best in tandem, focusing on three complementary areas: (1) to promote frontier innovation, it is advisable to limit local technology-push support to countries with sufficient technological capabilities -- but there is also a need to provide global technology-push support for base-of-pyramid and neglected technologies including through a pool of long-term, stable funds supported by demand-pull mechanisms such as prizes; (2) to promote catch-up innovation, it is essential both to facilitate technology access and to stimulate technology absorption by firms -- with critical roles played by international trade and foreign direct investment, with firm demand spurred by public procurement, regulations and standards; and (3) to develop absorptive capacity, there is a need to strengthen skills and to improve the prevailing business environment for innovation -- to foster increased experimentation, global learning, and talent attraction and retention. There is still considerable progress to be made in ranking green innovation policies as most appropriate for different developing country contexts -- based on more impact evaluation studies of innovation policies targeted at green technologies.
    Keywords: Environmental Economics&Policies,E-Business,ICT Policy and Strategies,Technology Industry,Climate Change Mitigation and Green House Gases
    Date: 2012–01–01
  14. By: Shahzad Kouser (Georg-August-University Göttingen); Matin Qaim (Georg-August-University Göttingen)
    Abstract: Data from a farm survey and choice experiment are used to value the benefits of Bt cotton in Pakistan. Unlike previous research on the economic impacts of Bt, which mostly concentrated on financial benefits in terms of gross margins, we also quantify and monetize positive externalities associated with technology adoption. Due to lower chemical pesticide use on Bt cotton plots, there are significant health advantages in terms of reduced incidence of acute pesticide poisoning, and environmental advantages in terms of higher biodiversity and lower soil and groundwater contamination. These positive externalities are valued at US$ 79 per acre, of which half is attributable to health and the other half to environmental improvements. Adding average gross margin gains of US$ 204 results in an aggregate benefit of US$ 283 per acre of Bt, or US$ 1.7 billion for the total Bt cotton area in Pakistan.
    Keywords: Bt cotton; Pesticide use; Health and environmental benefits; Choice experiment; Pakistan
    JEL: D62 I15 Q51 Q57
    Date: 2012–01–10
  15. By: Kinell, Gerda (Enveco Environmental Economics Consultancy Ltd); Söderqvist, Tore (Enveco Environmental Economics Consultancy Ltd); Elmgren, Ragnar (Department of Systems Ecology); Walve, Jacob (Department of Systems Ecology); Franzén, Frida (Södertörn University, Royal Institute of Technology (KTH) and Enveco Environmental Economics Consultancy Ltd.)
    Abstract: Active involvement of local stakeholders is currently an increasingly important requirement in European environmental regulations such as the EU Water Framework Directive (WFD) and the EU Marine Strategy Framework Directive (MSFD). The same is true for economic analyses such as cost-benefit analysis (CBA). For example, the Swedish WFD implementation requires i) quantification of cost and benefits of proposed measures and ii) stakeholder involvement. How can these two requirements be integrated in practice? And can such requirements facilitate implementation of projects with a potential net benefit? This paper presents a stepwise CBA procedure with participatory elements and applies it for evaluating nutrient management options for reducing eutrophication effects in the coastal area of Himmerfjärden SW of Stockholm, Sweden. The CBA indicates a positive net benefit for a combination of options involving increased nitrogen removal at a major sewage treatment plant, creation of new wetlands and connecting a proportion of private sewers to sewage treatment plants. The procedure also illustrates how the interdisciplinary development of a coupled ecological-economic simulation model can be used as a tool for facilitating the involvement of stakeholders in a CBA.
    Keywords: cost-benefit analysis; stakeholder involvement; integrated modeling; eutrophication
    JEL: D61
    Date: 2012–01–04
  16. By: Tetsuya , Tsurumi; Shunsuke , Managi
    Abstract: This study explores the effect of trade openness on deforestation. Previous studies do not find a clear effect of trade openness on deforestation. We use updated data on the annual rate of deforestation for 142 countries from 1990 to 2003, treat trade and income as endogenous, and take into consideration an adjustment process by applying a dynamic model. We find that an increase in trade openness increases deforestation for non-OECD countries while slowing down deforestation for OECD countries. There is a possibility that both capital-labor and environmental-regulation effects have a negative impact on deforestation in developing countries, whereas the opposite holds in developed countries.
    Keywords: Trade Openness; Environment; Comparative Advantage; Deforestation
    JEL: Q23 F10
    Date: 2011–12–30
  17. By: Stefanie Glotzbach (Sustainability Economics Group, Leuphana University of Lüneburg, Germany)
    Abstract: A twofold challenge arises from the normative aim of environmental justice to the management of agricultural systems: (1) the improvement of food security and livelihood of the rural poor today; (2) the sustenance and enhancement of the long-term productivity and resilience of agricultural systems to future generations. The paper analyzes the success factors and barriers of the Philippine farmer network MASIPAG in simultaneously realizing both objectives - based philosophically on Rawls’ “A Theory of Justice” (1971), conceptually on specific determinants of the relationship between the objectives, and empirically on the results of a comprehensive evaluation of the MASIPAG network.
    Keywords: environmental justice, ecosystem services, agriculture, agrobiodiversity, Philippines
    JEL: Q15 Q56 Q57
    Date: 2012–01
  18. By: Shuaizhang Feng; Michael Oppenheimer; Wolfram Schlenker
    Abstract: We investigate the link between agricultural productivity and net migration in the United States using a county-level panel for the most recent period of 1970-2009. In rural counties of the Corn Belt, we find a statistically significant relationship between changes in net outmigration and climate-driven changes in crop yields, with an estimated semi-elasticity of about -0.17, i.e., a 1% decrease in yields leads to a 0.17% net reduction of the population through migration. This effect is primarily driven by young adults. We do not detect a response for senior citizens, nor for the general population in eastern counties outside the Corn Belt. Applying this semi-elasticity to predicted yield changes under the B2 scenario of the Hadley III model, we project that, holding other factors constant, climate change would on average induce 3.7% of the adult population (ages 15-59) to leave rural counties of the Corn Belt in the medium term (2020-2049) compared to the 1960-1989 baseline, with the possibility of a much larger migration response in the long term (2077-2099). Since there is uncertainty about future warming, we also present projections for a range of uniform climate change scenarios in temperature or precipitation.
    JEL: N3 N5 Q1 Q54
    Date: 2012–01
  19. By: Michael McAleer (Erasmus University Rotterdam,Tinbergen Institute,Kyoto University,Complutense University of Madrid); Chia-Lin Chang (Department of Applied Economics Department of Finance National Chung Hsing University)
    Abstract: The Thomson Reuters ISI Web of Science citations database (hereafter ISI) category of Economics has one of the largest numbers of journals, at 304, of any ISI discipline, and hence has wide coverage. The paper analyses the leading international journals in the Economics sub-disciplines of Energy, Environmental and Resource Economics using quantifiable Research Assessment Measures (RAMs), and highlights the similarities and differences in alternative RAMs. The RAMs are based on alternative transformations of citations taken from the ISI database. Alternative RAMs may be calculated annually or updated daily to answer the perennial questions as to When, Where and How (frequently) published papers are cited (see Chang et al. (2011a, b, c)). The RAMs include the most widely used RAM, namely the classic 2-year impact factor including journal self citations (2YIF), 2-year impact factor excluding journal self citations (2YIF*), 5-year impact factor including journal self citations (5YIF), Immediacy (or zero-year impact factor (0YIF)), Eigenfactor, Article Influence, C3PO (Citation Performance Per Paper Online), h-index, PI-BETA (Papers Ignored - By Even The Authors), 2-year Self-citation Threshold Approval Ratings (2Y-STAR), Historical Self- citation Threshold Approval Ratings (H-STAR), Impact Factor Inflation (IFI), and Cited Article Influence (CAI). As data are not available for 5YIF, Article Influence and CAI for one of the 20 journals considered, 13 RAMs are analysed for 19 highly-cited journals in Energy, Environmental and Resource Economics in the ISI category of Economics. Harmonic mean rankings of the 13 RAMs for the 19 highly-cited journals are also presented. It is shown that emphasizing the 2-year impact factor of a journal, which partly answers the question as to When published papers are cited, to the exclusion of other informative RAMs, which answer Where and How (frequently) published papers are cited, can lead to a distorted evaluation of journal impact and influence relative to the Harmonic Mean rankings.
    Keywords: Research assessment measures, Impact factor, IFI, C3PO, PI-BETA, STAR, Eigenfactor, Article Influence, h-index.
    JEL: Q10 Q20 Q30 Q40 Q50
    Date: 2012–01
  20. By: Abdoul Aziz Wane; Luc Eyraud; Changchang Zhang; Benedict J. Clements
    Abstract: This paper fills a gap in the macroeconomic literature on renewable sources of energy. It offers a definition of green investment and analyzes the trends and determinants of this investment over the last decade for 35 advanced and emerging countries. We use a new multi-country historical dataset and find that green investment has become a key driver of the energy sector and that its rapid growth is now mostly driven by China. Our econometric results suggest that green investment is boosted by economic growth, a sound financial system conducive to low interest rates, and high fuel prices. We also find that some policy interventions, such as the introduction of carbon pricing schemes, or “feed-in-tariffs,†which require use of “green†energy, have a positive and significant impact on green investment. Other interventions, such as biofuel support, do not appear to be associated with higher green investment.
    Keywords: Asia , China , Climatic changes , Cross country analysis , Economic models , Energy policy , Energy prices , Europe , Greenhouse gas emissions , North America , Public investment , United States ,
    Date: 2011–12–16
  21. By: Pierre-Andre Jouvet (Universite Paris Ouest Nanterre La Defense, Climate Economics Chair, France); Frederic Lantz (IFPEN); Elodie Le Cadre (IFPEN, Universite Paris Ouest Nanterre La Defense,)
    Abstract: Reduction in energy dependancy and emissions of CO2 via renewables targeted in the European Union energy mix and taxation system might trigger the production of bioenergy production and competition for biomass utilization. Torrefied biomass could be used to produce second generation biofuels to replace some of the fuels used in transportation and is also suitable as feedstock to produce electricity in large quantities. This paper examines how the CO2 price aspects demand of torrefied biomass in the power sector and its consequences on the profitability of second generation biofuel units (Biomass to Liquid units). Indeed, the profitability of the BtL units which are supplied only by torrefied biomass is related to the competitive demand of the power sector driven by the CO2 price and feed-in tarifis. We propose a linear dynamic model of supply and demand. On the supply side, a profit-maximizing torrefied biomass sector is modelized. The model aims to represent the transformation of biomass into torrefied biomass which could be sold to the refinery sector and the power sector. A two-sided (demanders and supplier) bidding process led us to arrive at the equilibrium price for torrefied biomass. The French case is used as an example. Our results suggest that the higher the CO2 price, the more stable and important the power sector demand. It also makes the torrefied biomass production less vulnerable to uncertainty on demand coming from the refining sector. The torrefied biomass co-firing with coal can offer a near-term market for the torrefied biomass for a CO2 emission price lower than 20 euros/tCO2, which can stimulate development of biomass supply systems. Beyond 2020, the demand for torrefied biomass from the power sector could be substituted by the refining sector if the oil price goes up whatever the CO2 price.
    Keywords: Bioenergy, CO2 price, Renery market, Electricity market, Optimization.
    JEL: C61 Q16 Q41 Q42 Q58
    Date: 2012–01
  22. By: Graziano Abrate; Fabrizio Erbetta; Giovanni Fraquelli; Davide Vannoni
    Abstract: The paper investigates the costs of waste disposal and recycling services by using a well-behaved Composite cost function model. Our estimates on a unique sample of more than 500 Italian municipalities highlight that the refuse collection technology exhibits constant returns to scale as well as scope economies between disposal and recycling. As far as the size of the municipality increases, scope economies rise up to 14%, but they are accompanied with overall diseconomies of scale. Our findings suggest that, on the one hand, joint management of disposal and recycling should be encouraged, and, on the other hand, that strategies aimed at increasing the share of waste sent for recycling would not imply a considerable increase in total costs.
    Keywords: solid waste, recycling, cost functions
    JEL: D24 H42 L33 L99
    Date: 2011
  23. By: Enrique Calfucura (Facultad de Economía y Empresa, Universidad Diego Portales)
    Date: 2011–12
  24. By: Antoine Leblois (CIRED - Centre international de recherches en environnement et en développement - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - CNRS : UMR8568 - AgroParisTech - ENPC); Philippe Quirion (CIRED - Centre international de recherches en environnement et en développement - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - CNRS : UMR8568 - AgroParisTech - ENPC, LMD-IPSL - Laboratoire de météorologie dynamique - CNRS : UMR8539)
    Abstract: In many low-income countries, agriculture is mostly rainfed and crop yield depends highly on climatic factors. Furthermore, farmers have little access to traditional crop insurance, which suffers from high information asymmetry and transaction costs. Insurances based on meteorological indices could fill this gap since they do not face such drawbacks. However, a full-scale implementation has been slow so far. In this article, the most advanced projects that have taken place in developing countries using these types of crop insurances are described. Following this, the methodology that has been used to design such projects in order to choose the meteorological index, the indemnity schedule and the insurance premium, is described. Finally the main research issues are discussed. In particular, more research is needed on implementation, assessment of benefits, how to deal with climate change, spatial variability of weather and interactions with other hedging methods.
    Keywords: agriculture; insurance; climatic risk
    Date: 2011–10–06
  25. By: María Elena Gutierrez; Xavier Mommens
    Abstract: Este estudio tiene como finalidad mostrar cómo los servicios de las microfinanzas pueden sufrir los impactos del cambio climático, analizar las oportunidades que se presentan para las instituciones microfinancieras y proponer acciones concretas. El presente trabajo se desarrolló por encargo del Banco Interamericano de Desarrollo (BID) en coordinación con la Unidad de Energía Sostenible y Cambio Climático (ECC) y el Fondo Multilateral de Inversiones (FOMIN), y se realizó a partir de revisiones bibliográficas, de la experiencia en la región latinoamericana y de entrevistas que se llevaron a cabo durante misiones en Perú y Guatemala.
    Keywords: Energía y minería :: Energía renovable, Medio ambiente y recursos naturales :: Cambio climático, Sector privado :: Microempresas y microfinanciamiento, Desarrollo social :: Pobreza, Sector financiero :: Servicios financieros, IMF, sector de las microfinanzas, CC, instituciones microfinancieras, microcréditos
    Date: 2011–10
  26. By: Jensen, Kimberly L.; Clark, Christopher D.; English, Burton C.
    Keywords: imported fuel, willingness to pay, Marketing,
    Date: 2012

This nep-env issue is ©2012 by Francisco S.Ramos. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.