nep-env New Economics Papers
on Environmental Economics
Issue of 2012‒04‒17
33 papers chosen by
Francisco S.Ramos
Federal University of Pernambuco

  1. An Assessment of the Impact of the Introduction of Carbon Price Signals on Prices, Production Trends, Carbon Emissions and Power Flows in the NEM for the period 2007-2009. By Phil Wild; William Paul Bell; John Foster
  2. India’s Turn in Climate Policy: Assessing the Interplay of Domestic and International Policy Change By Joachim Betz
  3. Environmental and production cost impacts of no-till in Finland: Estimates from observed behavior. By Laukkanen, Marita; Nauges, Céline
  4. Non-Homothetic Growth Models for the Environmental Kuznets Curve By Katsuyuki Shibayama; Iain Fraser
  5. A model of waste control and abatement capital: Permanent versus temporary environmental policies By Travaglini, Giuseppe; Saltari, Enrico
  6. Progress Implementing the IEA 25 Energy Efficiency Policy Recommendations: 2011 Evaluation By Sara Pasquier; Aurelien Saussay
  7. Why do microfinance institutions go green? By Marion Allet
  8. Economic Impact of State Parks, Forests and Natural Resources under the Management of Department of Environmental Protection By Peter Gunther; Kathryn Parr; Marcello Graziano; Fred Carstensen
  9. An Experimental Analysis of Compliance in Dynamic Emissions Markets By John K. Stranlund; James J. Murphy; John M. Spraggon
  10. Environmental Quality and Life Satisfaction: Evidence Based on Micro-Data By Jérôme Silva; Femke de Keulenaer; Nick Johnstone
  11. Institutional change for creating capacity and capability for sustainable development: A club good perspective By Platje, Joost
  12. CCS Retrofit: Analysis of the Globally Installed Coal-Fired Power Plant Fleet By Matthias Finkenrath; Julian Smith; Dennis Volk
  13. Adaptation and Innovation: An Analysis of Crop Biotechnology Patent Data By Shardul Agrawala; Cécile Bordier; Victoria Schreitter; Valerie Karplus
  14. Environmentally Related Energy Taxes in Argentina, Bolivia and Uruguay By Navajas, Fernando H.; Panadeiros, Monica; Natale, Oscar
  15. Adapting road procurement to climate conditions By Iimi, Atsushi; Benamghar, Radia
  16. A methodology of estimation on air pollution and its health effects in large Japanese cities. By Hirota, Keiko; Shibuya, Satoshi; Sakamoto, Shogo; Kashima, Shigeru
  17. Green Jobs in Tennessee: Economic Impact of Green Investments By Murat Arik
  18. Dynamic regulation of nonpoint source pollution when the number of emitters is large By Tsur, Yacov; de Gorter, Harry
  19. Spreading the Net: The Multiple Benefits of Energy Efficiency Improvements By Lisa Ryan; Nina Campbell
  20. Willingness to pay more for water in a climate of confrontation: The case of Sucre, Bolivia By Francisco González Gómez; Jorge Guardiola; Edna Guidi Gutiérrez
  21. Regional Cooperation towards Green Asia: Trade and Investment By Kalirajan, Kaliappa
  22. Climate (change) and conflict: resolving a puzzle of association and causation By Christian Almer; Stefan Boes
  23. A Water Agency faced with quantity-quality management of a groundwater resource By Katrin Erdlenbruch; Mabel Tidball; Georges Zaccour
  24. Trading Frictions and Fishery Discards By Singh, Rajesh; Weninger, Quinn
  25. Monitoring and Evaluation for Adaptation: Lessons from Development Co-operation Agencies By Nicolina Lamhauge; Elisa Lanzi; Shardul Agrawala
  26. Landfill Diversion in a Decentralized Setting: a Dynamic Assessment of Landfill Taxes By Massimiliano Mazzanti; Francesco Nicolli
  27. The Impact of Carbon Pricing on Wholesale Electricity Prices, Carbon Pass-Through Rates and Retail Electricity Tariffs in Australia. By Phil Wild; William Paul Bell; John Foster
  28. Education, Rent-seeking and the Curse of Natural Resources. By Wadho, Waqar Ahmed
  29. Does the Acquisition of Mines Benefit Resource-Importing Countries? By Keisaku Higashida; Yasuhiro Takarada
  30. Direct and indirect energy consumption in China and the United States By LIU, H.; POLENSKE, K. R.; GUILHOTO, J. J. M.; XI, Y.
  31. Externalities, Internalities, and the Targeting of Energy Policy By Hunt Allcott; Sendhil Mullainathan; Dmitry Taubinsky
  32. Investment for Patience in an Endogenous Growth Model By Taketo Kawagishi
  33. Newfoundland's Electricity Options: Making the Right Choice Requires and Efficient Pricing Regime By James P. Feehan

  1. By: Phil Wild (Department of Economics, University of Queensland); William Paul Bell (Department of Economics, University of Queensland); John Foster (Department of Economics, University of Queensland)
    Abstract: There has been significant debate about the potential role that supply side and demand side policy initiatives might exert upon key participants within the National Electricity Market (NEM) in attempts to curb growth in carbon emissions. From the perspective of supply side policy initiatives, most debate and analysis has been focused upon assessing the impact that a ‘Cap-&-Trade’ carbon trading scheme, and more recently, a carbon tax scheme, might have on changing marginal cost relativities in order to promote increased dispatch and investment in less carbon emissions intensive types of generation technologies including gas-fired generation and renewable generation technologies. However, with any forthcoming move towards a carbon constrained economy, there are many uncertainties over policy settings that are required to achieve the environmental goal of reduced greenhouse gas emissions and about the resulting impact on the National Electricity Industry more generally. A complete understanding of the impacts on the electricity industry of carbon abatement policies requires that new renewable technology proposals be incorporated in a model containing many of the salient features of the national wholesale electricity market. These features include intra-regional and inter-state trade, realistic transmission network pathways, competitive dispatch of all generation technologies with price determination based upon marginal cost and branch congestion characteristics. It is only under such circumstances that the link between carbon emission reductions and generator based fuel switching can be fully explored and the consequences for carbon emission reductions and changes in wholesale and retail electricity prices can be determined.
    JEL: Q40
    Date: 2012–03
  2. By: Joachim Betz (GIGA German Institute of Global and Area Studies)
    Abstract: India has long been regarded as a deal-breaker in international climate negotiations; it was at the summit in Copenhagen that India first abandoned its old strategic line and made a commitment to reduce carbon emissions voluntarily. This shift was accompanied by a proliferation of domestic initiatives to save energy, to develop regenerative energies, etc. Traditional IR approaches remain insufficient to explain this policy shift – which is the aim of this paper – insofar as they fail to adequately take into account the fact that climate policies have to confront two audiences: a domestic and an international one, each presenting different tactical necessities for official reaction. On the international front, we argue that globally, India intended to be perceived as a responsible actor, one deserving of a greater say in global governance matters. On the domestic level, shrinking national energy reserves and mounting import dependence made the co-benefit of energy saving in reducing greenhouse gas emissions evident. The shift was made easier because important business associations aligned with a more eco-friendly development perspective and because the reduction commitments made by the Indian government on an international stage did not demand very stringent domestic emission reductions.
    Keywords: India, climate policies, greenhouse gas emissions, international climate summits, strategy shift, energy saving
    Date: 2012–03
  3. By: Laukkanen, Marita; Nauges, Céline
    Date: 2011–08
  4. By: Katsuyuki Shibayama; Iain Fraser
    Abstract: In this paper, we study the impact of the economic growth on the environment. First, we show that, at each income level, eta determines the direction of environmental degradation, where eta is the elasticity of substitution between consumption and the environment. That is, for eta large enough, as income increases people accept environmental degradation by enjoying more consumption as compensation, and vice versa. Intuitively, there are two effects operating; the income effect encourages the demand for better environmental quality simply because the environment is a normal good, whereas the substitution effect discourages it because maintaining the environment becomes more expensive as technology improvement increases the production of the general consumption good per unit of emission. The strength of the substitution effect is governed by eta. Hence, the impact of economic growth on the environment crucially depends on eta. Second, we demonstrate that exponential utility generates the environmental Kuznets curve (EKC) under a wide class of models without adding any other peculiar assumptions. Under exponential utility, eta is decreasing in income; intuitively, when a country is poor (large eta), people seek more consumption at the cost of environmental degradation, but, once it becomes rich enough (small eta), they seek increased environmental quality.
    Keywords: Environmental Kuznets Curve; Economic Growth; Non-Homothetic Preferences; Generalized Isoelastic Preferences
    JEL: O13 Q56
    Date: 2012–02
  5. By: Travaglini, Giuseppe; Saltari, Enrico
    Abstract: In this paper we investigate the effects of introducing explicitly abatement capital in a welfare function which depends on waste stock and consumption. Consumption is assumed to produce an undesiderable residue. Society can control waste accumulation using abatement capital. We focus on two issues: the intertemporal relationship between abatement investment and waste emission, and the effects of permanent and temporary environmental policies on the long-run equilibrium of the economic-ecological system. We get three main results. First, for a society the problems of waste control and abatement investment are very interrelated. Any change in investment affects waste emission and consumption, but not always in a predictable manner. Second, we show that the adoption of either temporary subsidies or taxes do not change the long-run properties of the economy. It is not just current subsidies or taxes, but their entire path over time that affects accumulation of waste and capital. Third, we get that environmental policies may have ambiguous effects: in response to subsidies or taxes a society might accumulate less abatement capital than desidered, allowing the stock of waste to rise in the long run.
    Keywords: Abatement investment; waste accumulation; dynamic optimization; environmental policy
    JEL: L51 E22 H23
    Date: 2012–03
  6. By: Sara Pasquier; Aurelien Saussay
    Abstract: Concerns about energy security, climate change and rising energy costs make it imperative for all countries to significantly improve their energy efficiency. To assist them in doing so, the IEA has proposed 25 energy efficiency policy recommendations. These recommendations could, if implemented globally without delay, reduce global CO2 emissions by as much as 7.6 giga tonnes (Gt) CO2/year by 2030 - almost 1.5 times the current annual carbon dioxide (CO2) emissions of the United States.<P>Yet are IEA member countries doing enough to capture the full potential benefits from energy efficiency policy? This innovative report provides the second assessment of IEA member countries' progress with implementing energy efficiency policy. Using a rigorous evaluation process, it finds that there have been significant energy efficiency policy developments since the last evaluation conducted in 2009. In particular, IEA member countries have implemented many policies in the transport, appliance and lighting sectors that were only planned in 2009. Nevertheless, IEA member countries still have significant unexploited energy savings opportunities that could be achieved with additional energy efficiency policy implementation.
    Date: 2012–03–05
  7. By: Marion Allet
    Abstract: In recent years, in addition to financial and social objectives, the microfinance industry has started to look at its environmental bottom line. The objective of this paper is to identify why microfinance institutions (MFIs) decide to go green. Data was collected through a quantitative survey of 160 MFIs and qualitative semi-structured interviews of 23 MFIs’ top managers. Basing our analysis on the model of ecological responsiveness developed by Bansal & Roth (2000), we discover that MFIs that are the most proactive in environmental management are primarily motivated by social responsibility, additionally by competitiveness, and to a lesser extent by legitimation (stakeholder pressure). MFIs for which legitimation is the dominant driver tend to adopt a defensive approach and set up more superficial negative strategies to appear green. In contrast, MFIs for which social responsibility is the dominant driver tend to be more proactive and innovative and develop adapted financial and non-financial services to promote environmentally-friendly practices.
    Keywords: Microfinance; Ecological responsiveness; Environmental motivation; Organizational decision making; Corporate Social Responsibility
    JEL: G21 Q01 Q56
    Date: 2012–04
  8. By: Peter Gunther; Kathryn Parr; Marcello Graziano; Fred Carstensen
    Abstract: This CCEA project for the state's Department of Energy and Environmental Protectin (DEEP) details how outdoor activities on state lands have an economic impact of more than $1 billion a year, from expenditures by residents and visitors on a variety of outdoor activities including camping, boating, fishing and hunting. The study highlights that for every dollar the state spends on the state park system, it receives an estimated $38 in economic activity. This study was released to the public by DEEP in December 2011.
    JEL: Q2 Q5
    Date: 2011–06
  9. By: John K. Stranlund (Department of Resource Economics, University of Massachusetts Amherst); James J. Murphy (Department of Economics, University of Alaska Anchorage); John M. Spraggon (Department of Resource Economics, University of Massachusetts Amherst)
    Keywords: Compliance, Enforcement, Emissions trading, Laboratory experiments, Permit markets, Permit banking
    JEL: C91 L51 Q58
    Date: 2011
  10. By: Jérôme Silva; Femke de Keulenaer; Nick Johnstone
    Abstract: Environmental conditions are likely to have an effect on people’s sense of life satisfaction, both directly and indirectly. In recent years there has been a burgeoning literature assessing the relationship between measures of environmental quality and subjective well-being. This type of studies can be a useful input into the setting of policy priorities. In this paper, the effects of individual and contextual factors on satisfaction with environmental quality and life satisfaction are assessed, using micro-data from a broad cross-section of OECD and non-OECD countries collected in the framework of the Gallup World Poll. In the analysis it is found that actual and perceived environmental quality has a significant effect on life satisfaction, with the magnitude being approximately half that of self-reported health status.<BR>Les conditions environnementales peuvent affecter, directement et indirectement, la satisfaction individuelle. Durant les dernières années s’est développée une littérature économique explorant les relations entre mesures de la qualité de l’environnement et mesures du bien-être subjectif des populations. Les travaux de ce type peuvent être utiles dans l’élaboration des priorités politiques. Nous explorons dans cet article les effets des facteurs individuels et contextuels sur la satisfaction par rapport à la qualité de l’environnement et au bien être subjectif, en utilisant des données individuelles collectées par Gallup au sein d’un large panel de pays membres et non-membres de l’OCDE. L’analyse montre que la qualité de l’environnement a un effet significatif sur la satisfaction individuelle, dont la magnitude est d’environ la moitié de celle de l’effet de la santé subjective.
    Keywords: subjective well-being, air pollution, local environmental quality, life satisfaction, bien-être subjectif, pollution de l’air, qualité de l’environnement, satisfaction individuelle
    JEL: D60 Q51 Q53
    Date: 2012–03–20
  11. By: Platje, Joost
    Abstract: Although the socio-economic development of many nations during the last two centuries has been very impressive, there are many issues questioning the sustainability of this development. Questions have been raised whether increased consumption will lead to increased happiness, or whether people will become more dependent on growth (Galbraith, 1958). While the so-called consumption society may lead to questionable results for social welfare, the increased use of natural resource and problems of waste, pollution, lack of regeneration of renewable resources and too slow progress in finding substitutes for non-renewable resources pose increasing threats for environmental sustainability (Boulding, 1966; Rao, 2000). These issues are slowly being recognized. The focus in this article is on the need for institutional change for entering a path of more sustainable (or, less unsustainable) development in the context of the seemingly infinite need for increased production and welfare. Arguments will be provided that the New Institutional Economics (NIE) may be useful in creating a theory of institutional change, strengthening society's capacity and capability for sustainable development (SD). However, without changing paradigms (worldviews) that growth is necessary and, in combination with technological advance, a mean to solve social and environmental problems, there are incredible challenges in entering a path of SD. First, some conditions for NIE to become a theory on society's capacity and capability for SD will be discussed in the context of its current focus on economic and environmental issues. Then, the notion of institutional capital will be developed and some of its determinant presented (value in the public domain, institutional strength, good governance, an institutional equilibrium). The level of transaction costs and assignment of property rights seem to be crucial for the process of institutional change. Finally, it will be argued that with the current techno-centric paradigm, when technological advance is too slow, there exists a danger that SD will become, at most, a kind of club good. --
    Keywords: institutional change,institutional capital,institutional economics,sustainable development,club good
    Date: 2011
  12. By: Matthias Finkenrath; Julian Smith; Dennis Volk
    Abstract: Electricity generation from coal is still growing rapidly and energy scenarios from the IEA expect a possible increase from today's 1 600 GW of coal-fired power plants to over 2 600 GW until 2035. This trend will increase the lock-in of carbon intensive electricity sources, while IEA assessments show that two-thirds of total abatement from all sectors should come from the power sector alone to support a least-cost abatement strategy. Since coal-fired power plants have a fairly long lifetime, and in order to meet climate constraints, there is a need either to apply CCS retrofit to some of today's installed coal-fired power plants once the technology becomes available. Another option would be to retire some plants before the end of their lifetime. This working paper discusses criteria relevant to differentiating between the technical, cost-effective and realistic potential for CCS retrofit. The paper then discusses today's coal-fired power plant fleet from a statistical perspective, by looking at age, size and the expected performance of today's plant across several countries. The working paper also highlights the growing demand for applying CCS retrofitting to the coal-fired power plant fleet of the future.<P>In doing so this paper aims at emphasising the need for policy makers, innovators and power plant operators to quickly complete the development of the CCS technology and to identify key countries where retrofit applications will have the biggest extent and impact.
    Keywords: Poland, Japan, Germany, Australia, United States, Asia, Russia, India, China, South Africa, coal, CCS, CO2 emissions, retrofit, CCS retrofit, retrofit potential, CCS retrofit potential, CCS ready, CO2, climate targets, 450ppm, lock-in, coal-fired power plants, power plants, generation capacity, World Energy Outlook, New Policies Scenario, Energy Technology Perspectives, Republic of Korea
    Date: 2012–03–29
  13. By: Shardul Agrawala; Cécile Bordier; Victoria Schreitter; Valerie Karplus
    Abstract: Innovation in technologies that promote mitigation and adaptation will be critical for tackling climate change. It can decrease the costs of policy measures and provide new opportunities for the private sector. However, most discussions of innovation have focused on mitigation, while little attention has been paid to innovation for adaptation. This paper uses agricultural crop biotechnology as a case study of innovative activity. The agricultural sector is considered to be particularly vulnerable to climate change, in addition to facing the pressures of meeting the demands of a rising world population. Innovation in plant breeding to develop crop varieties that are more resilient to climate change impacts is one of several possible adaptation options for agriculture. This paper neither advocates nor discourages the use of biotechnology, but focuses on providing estimates of the level and trends of innovation in this field.
    Keywords: innovation, agriculture, patents, climate change, adaptation, biotechnology, innovation, agriculture, brevets, changement climatique, adaptation, biotechnologie
    JEL: O39 Q16 Q54
    Date: 2012–03–26
  14. By: Navajas, Fernando H.; Panadeiros, Monica; Natale, Oscar
    Abstract: We start addressing the performance of environmentally related taxes in Argentina, Bolivia and Uruguay and find differences in level and structure with OECD countries but with the common feature that energy taxes are prime contributors. We then model an energy tax reform process out a status quo and towards environmentally related excises, distinguishing between uniform and non-uniform tax components, positive and normative tax structures, and between non-Ramsey and Ramsey specifications. We implement the model after some effort to estimate local and global environmental costs related to energy consumption. We find a rebalancing of fuel taxes (where gasoline and diesel are main drivers) that is robust to the range of price-demand elasticity and environmental cost parameters. Environmental (almost local) gains of the reform are significant, while fiscal impacts are positive and large but do not allow to claim double dividend effects because of price increases of widespread energy inputs triggered by the reform exercise. In the case of Argentina and Bolivia pre-existing distortions in energy prices imply large increases in end-user prices to accommodate not only tax increases but also corrections of producer prices. The assessment of the distributional impact of tax reforms depends on its type (Non Ramsey vs. Ramsey) and on considering environmental benefits to compensate for negative price effects. A Non-Ramsey tax reform has a positive distributive impact in Uruguay, while large pre-existing price distortions tend to produce negative impacts in Argentina and Bolivia. Overall we recommend non-Ramsey taxes as they are more transparent and easy to implement, avoid inverse-elasticity effects on tax wedges that have nothing to do with environmental costs and have better distributional properties. Moving to multiple instruments is also recommended to integrate other externalities, deal with informality and cope with distributive impacts.
    Keywords: environmental taxes; energy; tax models
    JEL: Q40 Q51 H23
    Date: 2011–12–02
  15. By: Iimi, Atsushi; Benamghar, Radia
    Abstract: The world's climate is changing. It is well recognized that technical standards and project specifications of public infrastructure have to be adjusted, depending on the climate. However, it is less recognized that the public infrastructure procurement also needs to be adjusted. This paper examines a particular case of rural road procurement in Nepal. Severe weather conditions, such as heavy rains and storms, are likely to interrupt civil works and wash away unpaved or gravel roads. It is found that heavy precipitation causes delays, but not cost overruns. The paper also shows that budgetary efficiency and credibility could be improved by taking climate conditions into account. If future precipitation were anticipated by backward-looking expectations, many large project delays could be avoided. If the autoregressive precipitation model were used, the vast majority of the observed delays could be eliminated.
    Keywords: Transport Economics Policy&Planning,Roads&Highways,Climate Change Mitigation and Green House Gases,Global Environment Facility,Rural Roads&Transport
    Date: 2012–04–01
  16. By: Hirota, Keiko; Shibuya, Satoshi; Sakamoto, Shogo; Kashima, Shigeru
    Abstract: The correlation between air pollution and health effects in large Japanese cities presents a great challenge owing to the limited availability of data on the exposure to pollution, health effects and the uncertainty of mixed causes. A methodology for quantitative relationships (between the emission volume and air quality, and the air quality and health effects) is analysed with a statistical method in this article; the correlation of air pollution reduction policy in Japan from 1974 to 2007. This chapter discusses a step-by-step methodology of determining the direct correlation between emission volumes, air quality, and health effects. The relationship between total emissions (NOx, PM) (from both stationary and mobile sources) and air quality (NO2, TSP) was found to be significant. The correlation analysis of emission volume, and air quality suggests that NOx and PM levels worsen according to increases in NO2. When the correlation between the air pollutant and the type of health effect (certified, mortality, recovery, and newly registered) was examined according to the certified area, an inverse relationship was observed. The relationship between air quality (NO2) and health effect was found to be significant. When NO2 worsens, certified patients, mortality rates and newly certified patients increase, according to the data from 1989 to 2007 with dummy variable analysis.
    Keywords: Air pollution; Health Effect; Japan; The Pollution-Related Health Damage Prevention System; Certified patients
    JEL: C10 I18 Q51 P28 C80
    Date: 2011–10–01
  17. By: Murat Arik
    Abstract: The term green jobs has been widely used to describe jobs in businesses that are particularly related to renewable energy, energy efficiency, or environmental sustainability. The Business and Economic Research Center has partnered with the Tennessee Department of Labor and Workforce Development to estimate the economic impact of six ground-breaking green investments in Tennessee: Hemlock Semiconductor, Wacker Chemie AG, Volkswagen, Nissan Leaf and Storage Battery Manufacturing, Tennessee Solar Institute and West Tennessee Solar Farm, and eTec Battery Charging Stations. The purpose of this study is to estimate the economic impact of the investments on Tennessee's economy. This study addresses the following major research questions: Where can the six major green investments be classified within the national and local green activity frameworks? How many green jobs will be created with these investments? What are the major occupations associated with these green investments?
    Keywords: green jobs, investment, Tennessee, economic impact, workforce, job creation, Hemlock Semiconductor, Wacker Chemie AG, Nissan Leaf manufacturing, Nissan Leaf storage battery manufacturing, Tennessee Solar Institute, West Tennessee Solar Farm, eTec Battery charging stations, Volkswagen
    Date: 2011–06
  18. By: Tsur, Yacov; de Gorter, Harry
    Abstract: When a nonpoint source pollution process involves many polluters, each taking his own contribution to aggregate pollution to be negligi- ble, ambient-based policies become ineffective due to lack of strategic interactions between dischargers. We offer a regulation mechanism for this case. The mechanism consists of inter-period and intra-period com- ponents. The first exploits ambient (aggregate) information to derive the optimal pollution and aggregate emission processes and the ensuing social price of emission. The intra-period mechanism takes as given the social price of emission and implements the optimal output-abatement- emission allocation across the heterogenous, privately informed firms in each time period. The mechanism gives rise to the full information outcome when the social cost of transfers is nil. A positive social cost of transfers decreases both output and abatement in each time period, though the effect on emission is ambiguous.
    Keywords: Nonpoint source pollution, abatement, stock externality, dynamic regulation, Markov decision process, asymmetric information, Crop Production/Industries, C61, D82, H23, L51, Q58,
    Date: 2012
  19. By: Lisa Ryan; Nina Campbell
    Abstract: Improving energy efficiency has long been advocated as a way to increase the productivity and sustainability of society, primarily through the delivery of energy savings. The impact of energy efficiency measures can go far beyond energy savings, and energy efficiency improvements can be an important contributor to economic growth and social development.<P>Benefits attributed to the implementation of energy efficiency measures range from localised benefits, such as energy affordability, improved health, wellbeing and social development, to sectoral benefits, such as industrial productivity, improved asset values and reduced environmental damage. Macroeconomic outcomes such as national competitiveness, jobs, consumer surplus and energy security, as well as poverty alleviation and greenhouse gas (GHG) mitigation in both developed and developing countries, are further associated with energy efficiency measures. Significant evidence is emerging on the extent to which these outcomes stem from energy efficiency policies. At the same time, evaluation experts are beginning to explore ways to quantify them so that they can be more readily assessed alongside energy savings. Expanding evaluation to such matters could offer a new perspective on energy efficiency measures and, by improving the cost/benefit assessment of energy efficiency programs, could help decision-makers reconcile perceived trade-offs between supporting economic growth and reducing energy use.<P>This paper makes a preliminary assessment of the scope of the most significant of the multiple benefits and discusses the potentially large implications for energy efficiency policy as part of a wider socioeconomic strategy.
    Date: 2012–03–29
  20. By: Francisco González Gómez (Dpto. Economía Aplicada); Jorge Guardiola (Universidad Cardenal Herrera); Edna Guidi Gutiérrez (Instituto Iberoamericano de Municipalistas)
    Date: 2012–03
  21. By: Kalirajan, Kaliappa (Asian Development Bank Institute)
    Abstract: Growth led by low-carbon goods and services (LCGS) is an imperative for the countries of Asia and the Pacific, and particularly for emerging Asian economies, which are heavily dependent on imported energy and resources. The objectives of this study are to (i) measure the potential of major emerging Asian economies for exports in LCGS under the "grand coalition," partial coalition, and stand-alone scenarios; (ii) measure the impact of existing "behind the border" constraints on potential exports in emerging Asian economies; (iii) identify the potential, options, and challenges with respect to a grand coalition scenario; and (iv) find ways to improve the contribution of public–private partnerships to LCGS.
    Keywords: low carbon goods services; emerging asian economies; energy; public private partnerships; trade environment; green growth
    JEL: Q56 Q58 R11
    Date: 2012–04–11
  22. By: Christian Almer; Stefan Boes
    Abstract: There is an ongoing discussion especially among political scientists and economists whether and how climate variability affects civil conflicts and wars in developing countries. Given the predicted climatic changes, several studies argue that increasing temperatures or decreasing precipitation will lead to more conflicts in the future. This paper aims at linking the different strands of the literature by analyzing the causal mechanisms at work. We use short-term weather variability as well as long-term changes in Sub-Saharan Africa and find that climate (change) significantly affects agricultural output, to some extent also GDP, and has no robust direct effects on civil wars. Negative shocks in GDP, however, have the expected fostering effects on civil conflicts.
    Keywords: Civil conflict; climate change; economic shocks; Africa
    JEL: D74 Q54 C36 N47
    Date: 2012–04
  23. By: Katrin Erdlenbruch; Mabel Tidball; Georges Zaccour
    Abstract: We consider a problem of groundwater management in which a group of farmers over- exploits a groundwater stock and causes excessive pollution. A Water Agency wishes to regulate the farmer's activity, in order to reach a minimum quantity and quality level but it is subject to a budget constraint and cannot credibly commit to time-dependent optimal policies. We construct a Stackelberg game to determine a set of constant policies that brings the groundwater resource back to the desired state. We define a set of conditions for which constant policies exist and compute the amount of these instruments in an example.
    Date: 2012–03
  24. By: Singh, Rajesh; Weninger, Quinn
    Abstract: We study harvest uncertainty in a fishery that is managed with tradable quotas. We show that eliminating trading frictions in quota markets can eliminate at-sea discards that occur due to random catch-quota imbalance. In general,discards and the cost of harvesting a fixed quota increases with trading costs. As an alternative, when trading costs are unavoidable, we deduce an ad-valorem tax/subsidy that can eliminate discards while delivering a desired harvest target. These results have important implications for quota program designs, which often limit quota trades to address ancillary management objectives.
    Keywords: Trading frictions; discards; harvest uncertainty; individual transferable fishing quotas
    JEL: Q Q2
    Date: 2012–04–03
  25. By: Nicolina Lamhauge; Elisa Lanzi; Shardul Agrawala
    Abstract: In the context of scaled up funding for climate change adaptation, it is more important than ever to ensure the effectiveness, equity and efficiency of adaptation interventions. Robust monitoring and evaluation (M&E) is an essential part of this, both to ensure that the prospective benefits of interventions are being realised and to help improve the design of future interventions. This paper is the first empirical assessment of M&E frameworks used by development co-operation agencies for projects and programmes with adaptation-specific or adaptation-related components. It has analysed 106 project documents across six bilateral development agencies. Based on this, it identifies the characteristics of M&E for adaptation and shares lessons learned on the choice and use of indicators for adaptation.<p> This analysis has found that Result Based Management, the Logical Framework Approach and the accompanying logframe are the most common M&E approaches used for adaptation. In applying these approaches, the long-term perspective of most adaptation initiatives means that it is particularly important to clearly differentiate between outcomes, outputs and activities. In addition, M&E frameworks for adaptation should combine qualitative, quantitative and binary indicators. The baselines for these indicators should include the effects of future climate change, particularly for projects with long-term implications, such as investments in infrastructure. Significant challenges remain in relation to dealing with shifting baselines, attribution and time lags between interventions and outcomes.<BR>De plus en plus de fonds étant alloués à l’adaptation au changement climatique, il est plus que jamais capital de veiller à l’efficacité, à l’équité et à l’efficience des actions menées dans ce cadre. Un système de suivi et d’évaluation rigoureux s’impose, à la fois pour garantir que les avantages attendus de ces actions se concrétiseront et pour mieux préparer les actions à mener dans l’avenir. Le présent document est la première étude empirique des cadres de suivi et d’évaluation appliqués par les agences de coopération pour le développement à des projets et des programmes portant intégralement ou partiellement sur l’adaptation. Cent-six documents de projets de six agences bilatérales de développement ont été analysés. Cela a permis d’identifier les caractéristiques des systèmes de suivi et d’évaluation appliqués à l’adaptation et d’en tirer des enseignements concernant le choix des indicateurs et leur utilisation.<p> D’après cette analyse, les deux approches de suivi et d’évaluation les plus employées sont en l’occurrence la gestion axée sur les résultats et la méthode du cadre logique et la matrice qui s’y rapporte. La plupart des initiatives d’adaptation s’inscrivant dans le long terme, il est particulièrement important de bien différencier les résultats, les produits et les activités lorsque l’on applique ces approches. En outre, les systèmes de suivi et d’évaluation appliqués à l’adaptation doivent associer des indicateurs qualitatifs, quantitatifs et binaires. Pour ces indicateurs, les références doivent intégrer les effets des changements climatiques futurs, notamment dans le cas des projets qui ont des implications à long terme (investissements dans les infrastructures, par exemple). La prise en charge des variations des références, de l’attribution des résultats et des décalages temporels entre actions et résultats pose encore des problèmes importants.
    Keywords: development co-operation, climate change adaptation, monitoring and evaluation, coopération pour le développement, adaptation au changement climatique, suivi et évaluation
    JEL: H43 O22 Q54
    Date: 2012–04–05
  26. By: Massimiliano Mazzanti; Francesco Nicolli
    Abstract: We analyse the process of landfill diversion and separated collection, two pillars of a waste related performance in a country, by embedding the dynamics in a frame where economic, geographical and policy variables enter the arena. We aim at investigating in depth what main drivers may be responsible for such a phenomenon. In addition to structural and economic drivers we primarily investigate the role of landfill taxes. Notwithstanding the Italian landfill tax dates back to 1996, there is a lack of effectiveness assessment, which primarily derives from the absence of a full coherent dataset covering all regions. In fact, the implementation is delegated to each region, a case study of real decentralisation, and the opposite for example of the UK situation, where the tax is set and administered by the Treasury. We first provide a descriptive analysis of the regional trends over the years on the basis of an original landfill tax dataset covering all Italy that we constructed through a scrutiny of regional bills, and web and telephone contacts. We exploit this peculiar and original aggregation of tax related information to test whether the tax has been effective in supporting landfill diversion. We test the hypothesis on the basis of an integrated dataset that merges economic, waste, policy variables together, at regional level and over the period 1999-2008. We check for results sensitivity the effect of the landfill regional tax by using provincial dataset over the same period. Panel regressions show that the effect of tax is significant, complementary to structural factors, population density and related opportunity cost among others. Spatial effects seem instead negligible. This is the first evidence on a large panel dataset that introducing and increasing landfill taxes over time is an effective way to cope with waste disposal. Regions that have increased such taxes over time have achieved better waste disposal performances. Landfill taxes are not the only instrument but they show to a relevant ‘must have’ in the policy package.
    Keywords: Landfill Taxes; Landfill Diversion; Recycling; Decentralized Policy; Regional Performance
    JEL: C23 Q38 Q56
    Date: 2012–04–10
  27. By: Phil Wild (Department of Economics, University of Queensland); William Paul Bell (Department of Economics, University of Queensland); John Foster (Department of Economics, University of Queensland)
    Abstract: The purpose of this article is to investigate the impact that the introduction of a carbon price signal will have on wholesale electricity prices, carbon-pass-through rates and retail electricity rates in the states making up the Australian National Electricity Market (NEM). In order to assess this, we employ an agent based model of the NEM called the ANEM model which contains many of the salient features of the NEM: intra-state and inter-state transmission branches, regional location of generators and load centres and accommodation of unit commitment features. A DC OPF algorithm is used to determine optimal dispatch of generation plant and wholesale prices within the ANEM model. We utilise ANEM model scenario runs to examine the impact of carbon prices on wholesale prices and carbon passthrough rates. This information is then used to assess the impact on retail electricity tariff rates and shares of cost components making up residential retail tariff rate structures for different states in the NEM.
    Keywords: Electricity Markets, Carbon Trading
    JEL: Q40
    Date: 2012–03
  28. By: Wadho, Waqar Ahmed
    Abstract: Empirical evidence suggests that natural resources breed corruption and reduce educational attainments, dampening economic growth. The theoretical literature has treated these two channels separately, with natural resources affecting growth either through human capital or corruption. In this paper, we argue that education and corruption are jointly determined and depend on the endowment of natural resources. Natural resources affect the incentives to invest in education and rent seeking that in turn affect growth. Whether natural resources stimulate growth or induce a poverty-trap crucially depends on inequality in access to education and political participation, as well as on the cost of political participation. For lower inequality and higher cost of political participation, a high-growth and a poverty-trap equilibrium co-exist even with abundant natural resources.
    Keywords: Natural resources; Resource curse; Growth; Human capital; Rent-seeking; Corruption
    JEL: O11 O41 O13 J24 D72
    Date: 2011–06–01
  29. By: Keisaku Higashida (School of Economics, Kwansei Gakuin University); Yasuhiro Takarada (Faculty of Policy Studies, Nanzan University)
    Abstract: Using a simple two-period model, this paper examines the effects of the acquisition of mines/resources by a final goods producer located in a resource-importing country on resource prices in both the first (the present) and second (the future) periods, profits of firms, and welfare. We find that an increase in the mines owned by a final goods producer can increase the resource price in the first period and/or, interestingly, the second period. The strategic behavior of a resource-extracting firm located in a resource-exporting country produces this result. Whether the resource price increases in either period depends on the demand structure for the final goods and the resource supply condition of the final goods producer which owns the mines in the second period. We also consider three extended situations: joint exploration, entry of speculators, and the case of a non-committed investment.
    Keywords: Acquisition of mines, resource exploitation, governments' support
    JEL: F12 F18 Q31 Q34
    Date: 2012–03
  30. By: LIU, H.; POLENSKE, K. R.; GUILHOTO, J. J. M.; XI, Y.
    Abstract: Greenhouse gas reduction and energy consumption are becoming two important issues in both industrialized and developing countries, and policy makers are developing means to reduce total domestic energy use. We evaluate and compare the direct and the indirect energy consumption both in the People’s Republic of China (China) and the United States of America (US) by looking at a series of hybrid energy input-output tables (1997, 2002, and 2007). We also apply structural decomposition analysis (SDA), to identify the factors causing energy intensity (energy consumption per unit of gross domestic product) to differ between the two countries, which lead to potential energy-saving options. Our results show that, besides the differences in direct energy consumption, huge differences also exist in indirect energy consumption between the two countries. Differences in indirect energy consumption are mainly due to differences in technology. Technological change and industrial-structure change are key factors to explain the inequality of energy intensity, while there is a significant trend towards the convergence of sectorial energy efficiency between the two countries.
    Keywords: Input-output analysis; Structural decomposition analysis; Energy
    JEL: D57 Q4
    Date: 2011
  31. By: Hunt Allcott; Sendhil Mullainathan; Dmitry Taubinsky
    Abstract: We show how the traditional logic of Pigouvian externality taxes changes if consumers under-value energy costs when buying energy-using durables such as cars and air conditioners. First, with undervaluation, there is an "Internality Dividend" from externality taxes: aside from reducing the provision of public bads, they also reduce allocative inefficiencies caused by consumers' underinvestment in energy efficient durables. Second, although Pigouvian taxes are clearly the preferred policy mechanism when externalities are the only market failure, undervaluation provides an "Internality Rationale" for alternative policies such as product subsidies that reduce the relative price of energy efficient durables. However, when some consumers misoptimize and others do not, a crucial quantity for policy analysis is the average marginal internality: the extent to which a policy preferentially targets misoptimizing consumers. As an example of the importance of the average marginal internality, we carry out a randomized field experiment to provide rebates for energy efficient lightbulbs and illustrate how the welfare effects of the rebate depend significantly on whether consumers that undervalue energy costs are more or less elastic.
    JEL: D03 D04 D11 H21 H22 H23 L51 L62 L97 Q41 Q48
    Date: 2012–04
  32. By: Taketo Kawagishi (Kyoto University)
    Abstract: This paper explores a one-sector AK model in which time preference depends on private investment in future-oriented resources along the lines of Becker and Mulligan (1997). Assuming that time preference is also affected by the social level of such investment and that of consumption, we show that multiple balanced growth path (BGP henceforth) equilibria can exist, and provide the conditions for multiple BGP equilibria. Furthermore, we clarify that the equilibrium path is indeterminate in the high-growth BGP equilibrium, while it is determinate in the low-growth BGP equilibrium. We also discuss the effect of a subsidy policy to private investment in future-oriented resources on an endogenous growth rate.
    Keywords: One-sector AK model; Endogenous time preference; Multiple balanced growth path equilibria; Subsidy policy
    JEL: E32 H23 O40
    Date: 2012–04
  33. By: James P. Feehan (Memorial University)
    Abstract: The Government of Newfoundland and Labrador is assessing whether to authorize the multi-billion dollar Muskrat Falls hydroelectricity project on the lower Churchill River in Labrador. Proponents say it is needed to handle expected increases in electricity consumption. A better first step, however, would be to reform provincial regulations that set artificially low prices for electricity and support excessive power consumption, which is a problem in Newfoundland as it is in other provinces. Changing regulatory regimes so that the price of electricity reflects underlying costs would make economic sense and promote energy conservation. For Newfoundland, such a change could make the expensive Muskrat Falls project unnecessary.
    Keywords: Economic Growth and Innovation, Governance and Public Institutions, Water Series, Province of Newfoundland, electricity, hydro, pricing, Newfoundland and Labrador Hydor (NLH), Nalcor Energy, Muskrat Falls Plan (MFP), Isolated Island Option (IIO)
    JEL: Q2 L9
    Date: 2012–01

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