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on Environmental Economics |
| By: | Melania Michetti (Centro Euro-mediterraneo per i Cambiamenti Climatici (CMCC), Fondazione Eni Enrico Mattei (FEEM), Università Cattolica del Sacro Cuore di Milano); Ramiro Parrado (Centro Euro-mediterraneo per i Cambiamenti Climatici (CMCC), Fondazione Eni Enrico Mattei (FEEM), Università Ca’ Foscari di Venezia) |
| Abstract: | We present a computable general equilibrium model properly modified to analyse the potential role of the European forestry sector within climate mitigation. Improvements on database and modelling frameworks allow accounting for land heterogeneity across and within regions and for land transfers between agriculture, grazing, and forestry. The forestry sector has been modified to track carbon mitigation potential from both intensive and extensive forest margins, which have been calibrated according to a forest sectoral model. Two sets of climate policies are simulated. In a first scenario, Europe is assumed to commit unilaterally to reduce CO2 emissions by 20% and 30%, by 2020. In a second scenario, in addition to the emissions quotas, progressively higher forest sequestration subsidies are paid to European firms to foster the implementation of forestry practices. Results show that including forest carbon in the compliance strategy decreases European policy costs and carbon price, while it does not lead to significant reductions in carbon leakage. We conclude that while European forests can reinforce other mitigation measures, their contribution as a stand-alone abatement strategy results insufficient to comply with emissions reduction targets. Additionally, carbon sinks provided by European temperate forests do not offer considerable mitigation potential if compared with other forest biomes around the world. A much higher forest mitigation would require other regions to take part in a climate stabilization agreement, especially those where old-growth forests exist. |
| Keywords: | Climate Change, Climate Mitigation, General Equilibrium Modelling, Forestry |
| JEL: | D58 Q23 Q54 Q58 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2012.19&r=env |
| By: | Chotichanathawewong, Qwanruedee (Asian Development Bank Institute); Thongplew, Natapol (Asian Development Bank Institute) |
| Abstract: | In Thailand climate change has been integrated into the formulation of several national plans and policies. Both the public and private sector have been actively involved in reducing greenhouse gas emissions, with a series of measures and actions implemented in each sector. The development of renewable energy and the promotion of energy conservation and efficiency have been the primary means to mitigate greenhouse gas emissions in Thailand and though it has made significant progresses toward green and low-carbon development, there is a need to further address the issue. |
| Keywords: | climate change; thailand; greenhouse gas emissions; renewable energy; low-carbon development |
| JEL: | Q54 Q58 |
| Date: | 2012–04–13 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:0352&r=env |
| By: | Simon Bisore; Walter Hecq |
| Abstract: | As one of the offsetting instruments, the Clean Development Mechanism (CDM) allows industrialized countries to meet their compliance objectives by undertaking and financing project activities in developing countries with certified emissions reductions (CERs) in return. Next to Kyoto mechanisms, voluntary offset markets for GHG emissions reductions that are not compliant with the Kyoto Protocol are developing quickly. Emissions offsets in this latter category are verified by official or independent agents but are not certified by regulatory authorities for use as a compliance instrument, and are commonly referred to as verified emissions reductions (VERs) which are not a standardized commodity. This paper compares the two types of projects-based carbon offset markets and analyses the question of complementarity or competition between them in their contribution to the mitigation of global warming as well as to sustainable development in the host countries. |
| Keywords: | Climate change; CDM carbon offset market; Voluntary carbon offset; Competition; Complementarity; Standards; Carbon credits; Sustainable development |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:2013/115381&r=env |
| By: | Ines Österle (Centro di Economia Regionale, dei Trasporti e del Turismo CERTeT - Bocconi) |
| Abstract: | Policies aimed at reducing emissions from fossil fuels may increase climate damages. This “Green Paradox” emerges if resource owners increase near-term extraction in fear of stricter future policy measures. Hans-Werner Sinn (2008) showed that the paradox occurs when increasing resource taxes are applied within a basic exhaustible resource model. This article highlights that the emergence of the Green Paradox within this framework relies on the non-existence of a backstop technology and fixed fossil fuel resources. In doing this, it initially presents a basic exhaustible resource model which includes a backstop technology and shows that the implementation of a specific sales tax path is effective in mitigating global warming. Secondly, it considers the case of costly exploration activities being introduced within the basic model and accounts for the real world condition that the location of fossil fuels is unknown. Under this condition, an increasing cash flow tax is effective in dealing with climate change if policy makers commit to a high initial tax level and to a specific range of growth rates. |
| Keywords: | Green Paradox, Supply-side dynamics, Climate Policy, Exhaustible Resources, Fossil Fuels, Exploration |
| JEL: | Q31 Q54 Q58 H23 H32 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2012.13&r=env |
| By: | Achtnicht, Martin |
| Abstract: | Motorized individual transport strongly contributes to global CO2 emissions, due to its intensive usage of fossil fuels. Current political efforts addressing this issue (i.e. emission performance standards in the EU) are directed towards car manufacturers. This paper focuses on the demand side. It examines whether CO2 emissions per kilometer is a relevant attribute in car choices. Based on a choice experiment among potential car buyers from Germany, a mixed logit specification is estimated. In addition, distributions of willingness-to-pay measures for an abatement of CO2 emissions are obtained. The results suggest that the emissions performance of a car matters substantially, but its consideration varies heavily across the sampled population. In particular, some evidence on gender, age and education effects on climate concerns is provided. -- |
| Keywords: | Choice experiment,CO2 emissions,Mixed logit,Passenger cars,Willingness to pay |
| JEL: | C25 D12 Q51 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:09058r&r=env |
| By: | Raphael Calel (Grantham Research Institute on Climate Change and the Environment, London School of Economics); Antoine Dechezleprêtre (Centre for Economic Performance, London School of Economics) |
| Abstract: | The European Union Emissions Trading Scheme (EU ETS) has aimed to encourage the development of low-carbon technologies by putting a price on carbon emissions. Using a newly constructed data set that links 8.5 million European companies with their patenting history and their regulatory status under EU ETS, we investigate the hypothesis that the EU ETS has encouraged development of low-carbon technologies. Exploratory data analysis reveals a rapid increase in low-carbon patenting activities at the EPO since 2005, especially among EU ETS regulated companies during the Scheme's second phase. Naive estimates obtained by comparing EU ETS and non-EU ETS firms suggest that the Scheme may be responsible for up to 30% of the increase in low-carbon patenting of regulated companies. However, more refined estimates that combine matching methods with difference-in-differences provide evidence that the EU ETS has not impacted the direction of technological change. This finding appears to be robust to a number of stability and sensitivity checks. While we cannot completely rule out the possibility that the EU ETS has impacted only large companies for which suitable unregulated comparators cannot be found, our findings suggest that the EU ETS so far has had at best a very limited impact on low-carbon technological change. |
| Keywords: | Directed Technological Change, EU Emissions Trading Scheme, Policy Evaluation |
| JEL: | Q54 Q58 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2012.22&r=env |
| By: | Matias Piaggio (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona); Vicent Alcantara Escolano (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona); Emilio Padilla Rosa (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona) |
| Abstract: | This paper identifies the key sectors in greenhouse gas emissions of the Uruguayan economy through input–output analysis. This allows to precisely determine the role played by the different productive sectors and their relationship with other sectors in the relation between the Uruguayan productive structure and atmospheric pollution. In order to guide policy design for GHG reduction, we decompose sectors liability between the pollution generated through their own production processes and the pollution indirectly generated in the production processes of other sectors. The results show that all the key polluting sectors for the different contaminants considered are relevant because of their own emissions, except for the sector Motor vehicles and oil retail trade, which is relevant in CO2 emissions because of its pure, both backward and forward, linkages. Finally, the best policy channels for controlling and reducing GHGs emissions are identified, and compared with the National Climate Change Response Plan (NCCRP) lines of action. |
| Keywords: | Greenhouse gas emissions, input–output, Key sectors, Uruguay |
| JEL: | C67 Q40 Q43 Q56 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:uab:wprdea:wpdea1204&r=env |
| By: | Wilfried Ehrenfeld |
| Abstract: | In this article, we describe the results of a multiple case study on the indirect corporate innovation impact of climate change in the Central German chemical industry. We investigate the demands imposed on enterprises in this context as well as the sources, outcomes and determining factors in the innovative process at the corporate level. We argue that climate change drives corporate innovations through various channels. A main finding is that rising energy prices were a key driver for incremental energy efficiency innovations in the enterprises’ production processes. For product innovation, customer requests were a main driver, though often these requests are not directly related to climate issues. The introduction or extension of environmental and energy management systems as well as the certification of these are the most common forms of organizational innovations. For marketing purposes, the topic of climate change was hardly utilized so far. As the most important determinants for corporate climate innovations, corporate structure and flexibility of the product portfolio, political asymmetry regarding environmental regulation and governmental funding were identified. |
| Keywords: | climate change, innovation, chemical industry, Central Germany |
| JEL: | Q55 O33 O38 Q54 O31 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:iwh:dispap:2-12&r=env |
| By: | Stephen Howes (Asian Development Bank Institute (ADBI)); Paul Wyrwoll |
| Abstract: | The developing economies of Asia are confronted by serious environmental problems that threaten to undermine future growth, food security, and regional stability. This study considers four major environmental challenges that policymakers across developing Asia will need to address towards 2030 : water management, air pollution, deforestation and land degradation, and climate change. We argue that these challenges, each unique in their own way, all exhibit the characteristics of “wicked problemsâ€. As developed in the planning literature, and now applied much more broadly, wicked problems are dynamic, complex, encompass many issues and stakeholders, and evade straightforward, lasting solutions. Detailed case studies are presented to illustrate the complexity and significance of Asia’s environmental challenges, and also their nature as wicked problems. The most important implication of this finding is that there will be no easy or universal solutions to environmental problems across Asia. This is a caution against over-optimism and blueprint or formulaic solutions. It is not, however, a counsel for despair. We suggest seven general principles which may be useful across the board. These are : a focus on co-benefits; an emphasis on stakeholder participation; a commitment to scientific research; an emphasis on long-term planning; pricing reform; tackling corruption, in addition to generally bolstering institutional capacity with regard to environmental regulation; and a strengthening of regional approaches and international support. |
| Keywords: | Environmental Problems, Asia, developing economies of Asia, developing Asia |
| JEL: | O44 Q58 Q56 O10 O53 Q28 Q53 |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:eab:develo:23289&r=env |
| By: | Stephen Howes (Asian Development Bank Institute (ADBI)); Paul Wyrwoll |
| Abstract: | The developing economies of Asia are confronted by serious environmental problems that threaten to undermine future growth, food security, and regional stability. This study considers four major environmental challenges that policymakers across developing Asia will need to address towards 2030 : water management, air pollution, deforestation and land degradation, and climate change. We argue that these challenges, each unique in their own way, all exhibit the characteristics of “wicked problemsâ€. As developed in the planning literature, and now applied much more broadly, wicked problems are dynamic, complex, encompass many issues and stakeholders, and evade straightforward, lasting solutions. Detailed case studies are presented to illustrate the complexity and significance of Asia’s environmental challenges, and also their nature as wicked problems. The most important implication of this finding is that there will be no easy or universal solutions to environmental problems across Asia. This is a caution against over-optimism and blueprint or formulaic solutions. It is not, however, a counsel for despair. We suggest seven general principles which may be useful across the board. These are : a focus on co-benefits; an emphasis on stakeholder participation; a commitment to scientific research; an emphasis on long-term planning; pricing reform; tackling corruption, in addition to generally bolstering institutional capacity with regard to environmental regulation; and a strengthening of regional approaches and international support. |
| Keywords: | Environmental Problems, Asia, developing economies of Asia, developing Asia |
| JEL: | O44 Q58 Q56 O10 O53 Q28 Q53 |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:eab:govern:23289&r=env |
| By: | William Brock (University of Wisconsin, Department of Economics); Gustav Engstrom (Beijer Institute of Ecological Economics); Anastasios Xepapadeas (Athens University of Economics and Business) |
| Abstract: | A simplified energy balance climate model is considered with the global mean temperature as the state variable, and an endogenous ice line. The movements of the ice line towards the Poles are associated with damage reservoirs where initial damages are high and then eventually vanish as the ice caps vanish and the damage reservoir is exhausted. We couple this climate model with a simple economic growth model and we show that the endogenous ice line induces a nonlinearity. This nonlinearity when combined with two sources of damages - the conventional damages due to temperature increase and the reservoir damages - generates multiple steady states and Skiba points. It is shown that the policy ramp implied by this model calls for high mitigation now. Simulation results suggest that the policy ramp could be U-shaped instead of the monotonically increasing with low starting mitigation gradualist policy ramp. |
| Keywords: | Energy Balance Climate Models, Damage Reservoir, Ice Line, Permafrost, Heat Diffusion, Policy Ramp, Skiba Points |
| JEL: | Q54 Q58 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2012.20&r=env |
| By: | Halkos, George; Tzeremes, Nickolaos |
| Abstract: | This paper, by using conditional directional distance functions as introduced by Simar and Vanhems [J. Econometrics 166 (2012) 342-354] modifies the model by Färe and Grosskopf [Eur. J. Operat. Res. 157 (2004) 242-245], examines the link between regional environmental efficiency and economic growth. The proposed model using conditional directional distance functions incorporates the effect of regional economic growth on regions’ environmental efficiency levels. The results from the UK regional data reveal that economic growth has a negative effect on regions’ environmental performance up to a certain GDP per capita level, where after that point the effect becomes positive. This indicates the existence of a Kuznets type relationship between the UK regions’ environmental performance and economic growth. |
| Keywords: | Regional environmental performance; Directional distance function; Conditional measures; U.K. regions |
| JEL: | R10 Q50 C14 Q56 C60 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:38147&r=env |
| By: | Heinrich, Barbara |
| Abstract: | Agricultural policy is designed to achieve certain goals. One goal that is of increasing importance in public discussion is 'public money for public goods' i.e. the compensation for the provision of public goods and the internalization of externalities. The European Union's Common Agricultural Policy is currently undergoing a reform process which inter alia aims to achieve a higher environmental standard in agricultural production by binding direct payments to practices beneficial for the climate and the environment (the so-called 'greening'). I simulate how farms would respond to these measures using a case study farm modeling approach and data for different farm types in Germany. I find that the considered and currently envisaged 'greening' measures can be expected to function in general due to the linkage to the direct payments, which provide a strong disincentive to forego participation. The individual economic outcome strongly depends on the current intensity of the farm in question and on the implementation details of the introduced measures. However, farms with very high gross margins per hectare will forego the support scheme. -- |
| Keywords: | greening,Common Agricultural Policy,reform of the CAP,agri-environmental measures,direct payments |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:daredp:1205&r=env |
| By: | Hans Gersbach (ETH Zurich, Switzerland); Quirin Oberpriller (ETH Zurich, Switzerland) |
| Abstract: | We demonstrate the advantages of a climate treaty based solely on rules for international permit markets when there is uncertainty about abatement costs and environmental damages. Such a ‘Rules Treaty’ comprises a scaling factor and a refunding rule. Each signatory can freely choose the number of permits it allocates to domestic firms. For every permit so issued, an international agency is allowed to issue additional permits in accordance with the scaling factor. The agency auctions all additional permits and refunds all the revenues to the signatories according to the refunding rule. Our main finding is that for a sufficiently large scaling factor, the Rules Treaty approximates the globally optimal outcome in every state of the world. In this sense, newly arriving information is optimally processed. This is in stark contrast to treaties based on emission targets, even if countries fully comply with such targets. If countries are sufficiently homogeneous there exists, moreover, a refunding rule under which every country that abates more under the treaty than in the status quo ante can be compensated, so that all countries will participate voluntarily. If, however, countries are rather heterogeneous, some may decline to participate. |
| Keywords: | Rules Treaties, Target Treaties, Climate Change, Uncertainty, Global Refunding Scheme, International Permit Markets |
| JEL: | D81 H23 H41 Q54 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:12-159&r=env |
| By: | Carlo Carraro (University of Venice, Fondazione Enrico Mattei, CEPR, CESifo and CMCC); Enrica De Cian (Fondazione Enrico Mattei and CMCC); Massimo Tavoni (Fondazione Enrico Mattei and CMCC) |
| Abstract: | This paper looks at the interplay between human capital and innovation in the presence of climate and educational policies. Using recent empirical estimates, human capital and general purpose R&D are introduced in an integrated assessment model that has been extensively applied to study climate change mitigation. Our results suggest that climate policy stimulates general purpose as well as clean energy R&D but reduces the incentive to invest in human capital formation. Human capital increases the productivity of labour and the complementarity between labour and energy drives its pollution-using effect (direct effect). When human capital is an essential input in the production of generic and energy dedicated knowledge, the crowding out induced by climate policy is mitigated, thought not completely offset (indirect effect). The pollution-using implications of the direct effect prevail over the indirect contribution of human capital to the creation of new and cleaner knowledge. A policy mix that combines educational as well as climate objectives offsets the human capital crowding-out with a moderate, short-term consumption loss. Human capital is complement to all forms of innovation and an educational policy stimulates both energy and general purpose innovation. This result has important policy implications considering the growing concern that effective climate policy is conditional on solid economic development and therefore it needs to be supplemented by other policy targets. |
| Keywords: | Climate Policy, Innovation, Human capital |
| JEL: | O33 O41 Q43 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2012.18&r=env |
| By: | Bell, William |
| Abstract: | This paper aims to identify climate change adaptation issues in the Australian National Electricity Market by assessing the robustness of the institutional arrangements that support effective adaptation. The paper finds that three major factors are hindering or are required for adaptation to climate change: institutional fragmentation both economically and politically; distorted transmission and distribution investment deferment mechanisms; and lacking mechanisms to develop a diversified energy portfolio. Proposed solutions to the three factors are discussed. These proposed solutions are tested and examined in forthcoming reports. |
| Keywords: | Climate change adaptation; electricity demand; electricity generation; transmission; distribution; Australian National Electricity Market |
| JEL: | R22 O13 Q3 Q01 Q2 Q4 Q5 L94 R38 |
| Date: | 2012–02–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:38112&r=env |
| By: | Bell, William Paul |
| Abstract: | This paper aims to identify climate change adaptation issues in the Australian National Electricity Market (NEM) by assessing the robustness of the institutional arrangements that support effective adaptation from the supply side. This paper finds that three major factors are hindering or are required for adaptation to climate change: institutional fragmentation both economically and politically; distorted transmission and distribution investment deferment mechanisms; and lacking mechanisms to develop a diversified portfolio of generation technology and energy sources to reduce supply risk. Proposed solutions to the three factors are discussed. These proposed solutions are tested and examined in forthcoming papers. |
| Keywords: | Climate change adaptation; electricity generation; electricity transmission; Australian National Electricity Market |
| JEL: | O2 O13 Q3 Q01 Q4 Q5 L94 R38 |
| Date: | 2012–01–31 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:38111&r=env |
| By: | Bell, William |
| Abstract: | This paper aims to identify climate change adaptation issues in the Australian National Electricity Market (NEM) by assessing the robustness of the institutional arrangements that support effective adaptation from the demand side. This paper finds that three major factors are hindering or are required for adaptation to climate change: institutional fragmentation both economically and politically; distorted transmission and distribution investment deferment mechanisms; and failure to model and to treat the NEM as a node based entity rather than state based. Proposed solutions to the three factors are discussed. These proposed solutions are tested and examined in forthcoming reports. |
| Keywords: | Climate change adaptation; electricity demand; Australian National Electricity Market |
| JEL: | R22 O13 Q3 Q01 Q2 Q4 Q5 L94 R38 |
| Date: | 2012–02–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:38110&r=env |
| By: | Dang, Duc Anh |
| Abstract: | In this paper, I provide a new empirical evidence that natural environment can shape individual risk preferences. By combining historical data on climate variation and contemporary survey questions on risk aversion, I find that risk aversion is significantly different for people who live in areas that have suffered high frequency of natural disaster. In particular, individuals highly affected by climate volatility show a long term risk aversion. |
| Keywords: | Climate variation; risk aversion; Vietnam |
| JEL: | D03 O53 Q54 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:38058&r=env |
| By: | Emhjellen, Magne (Petoro); Osmundsen, Petter (UiS) |
| Abstract: | Many sosio-economic rates of returns for climate projects have been used in analysing the present value of the climate benefit. However, little attention has been devoted to profitability assessments based on commercial considerations. Economic valuation of climate projects, seen from the perspective of a commercial company, is the subject of this article. In particular, we examine the required rate of return for a project where the uncertainty in the CO2 quota price is the main market uncertainty. We complement the existing climate literature by examining the required rate of return of a climate project in a Capital Asset Pricing Model (CAPM) setting. We find that the CO2 quota price has slightly more systematic risk in the period calculated than the oil price, and estimate the nominal required rate of return for the value of CO2 reduction to be 7.3 percentage points. |
| Keywords: | Climate Projects; Decision Analysis |
| JEL: | G10 |
| Date: | 2012–04–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:stavef:2012_007&r=env |
| By: | Valentina Bosetti (Fondazione Eni Enrico Mattei, Euro-Mediterranean Center for Climate Change); Thomas Longden (Fondazione Eni Enrico Mattei, Euro-Mediterranean Center for Climate Change) |
| Abstract: | With a focus on establishing whether climate targets can be met under different personal transport scenarios we introduce a transport sector representing the use and profile of light domestic vehicles (LDVs) into the integrated assessment model WITCH. In doing so we develop long term projections of light domestic vehicle use and define potential synergies between innovation in the transportation sector and the energy sector. By modelling the demand for LDVs, the use of fuels, and the types of vehicles introduced we can analyse the potential impacts on the whole economy. We find that with large increases in the use of vehicles in many regions around the globe, the electrification of LDVs is important in achieving cost effective climate targets and minimising the impact of transportation on other sectors of the economy. |
| Keywords: | Light Duty Vehicles, Transportation, Climate Change Policy, Electric Drive Vehicles, Research and Development |
| JEL: | Q54 R41 O3 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2012.11&r=env |
| By: | Sanya Carley (School of Public and Environmental Affairs, Indiana University); Sameeksha Desai (School of Public and Environmental Affairs, Indiana University); Morgan Bazilian (United Nations Industrial Development Organization) |
| Abstract: | Energy-based economic development (EBED) can provide economic, social and environmental benefits related to national economic development and sustainable growth activities. As both policy and research interests in responsible mechanisms for economic development grow, EBED benefits are becoming increasingly attractive to planners in both developed and developing countries. The incentives, trade-offs, and payoffs for developing countries, however, are not well documented. To help address that gap, this paper identifies the general scope and role of EBED in a developing economy context, and outlines opportunities and challenges for decision-makers. |
| Keywords: | Economic Development; Energy, Developing Countries, Sustainable Development |
| JEL: | O10 O13 O21 Q48 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2012.25&r=env |
| By: | Oscar Camé |
| Abstract: | The objective of these notes is to provide Bank staff with direction and assistance to ensure the compliance of low and medium risk Category B Water & Sanitation (W&S) projects with the Bank's environmental and social policies and safeguards during Preparation Phase. These notes are aimed to support Project Teams -particularly W&S specialists- when ESG staff members are not part of them, so they are able to ensure compliance with the Bank's policies and environmental safeguards during the preparation phase of their projects. In this context, it is supposed that most W&S projects are Sovereign Guaranteed (SG) -or public sector- operations; for Non Sovereign Guaranteed (NSG) -or private sector- operations, some adjustments should be made to these notes. |
| Keywords: | Environment & Natural Resources :: Water Management, Environment & Natural Resources :: Disasters, Social Development :: Afro Descendants & Indigenous Peoples, Public Sector :: Transparency & Anticorruption, environmental compliance, low risk |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:65198&r=env |
| By: | Anthony Heyes (University of Ottawa); Sandeep Kapur (Department of Economics, Mathematics & Statistics, Birkbeck) |
| Abstract: | The desire to avoid rousing community hostility may encourage firms to behave in an environmentally responsible manner. It has been conjectured that such 'informal regulation' could effectively replace formal intervention in some settings, and usefully complement it in others. We explore these conjectures with mixed results. Informal regulation is necessarily less efficient than a well-designed formal alternative and the pattern of green behaviour induced by the threat of community hostility may increase or decrease welfare. The existence of community pressure may increase or decrease the optimal calibration of a formal intervention (in this case an environmental tax) and may complement or detract from the incentives generated by an optimally-calibrated tax. |
| Keywords: | community pressure, informal regulation, compliance, enforcement |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:bbk:bbkefp:1207&r=env |
| By: | Takahashi, Ryo; Todo, Yasuyuki |
| Abstract: | This study uses remote sensing data to quantitatively examine the impact of establishing participatory forest management associations in Ethiopia. The results indicate that where there is a forest association, forest area declines more in the year the association is established than it does in a forest area where there is no association. This suggests that villagers may engage in “last-minute” logging. However, one year after associations are established, forest area where there is an association increases substantially, probably due to the associations planting trees at boundary areas between forest and non-forest and monitoring illegal logging. On average, where there are forest associations, forest area increases by 1.5 percent in the first two years, while forest area where there is no association declines by 3.3 percent. Totaling this impact over two years yields a 4.8 percent positive net increase in the rate of change. |
| Keywords: | impact evaluation , remote sensing , forest protection , community management , Ethiopia |
| Date: | 2011–07–06 |
| URL: | http://d.repec.org/n?u=RePEc:jic:wpaper:31&r=env |
| By: | Sato, Jin |
| Abstract: | This paper argues that the continuing failure of environmental governance by the state lies not only in inappropriate actions taken by the responsible agencies, but also in the way bureaucratic structures have evolved to limit their policy choices. Whether effective or not, the state continues to be dominant in determining the use (and non-use) of natural resources in many parts of the world. Based on a detail case study of Thailand, the paper draws two major conclusions: First, inter-departmental conflict has historical roots that have shaped the present policy environment. New mandates and responsibilities are continuously added on top of the policy space. Because the Thai government established vested interests in the field of production in its formative period in order to expand commercial activities and generate revenue, a more recent mandates to conserve resources were left with little room. The late-coming departments are often pushed into performing mandates that limit them to the area of research and planning, often in isolation with the authority to enforce regulations. This asymmetric division of labor induced not only policy inaction among the departments who dared not step into the territories of other departments, but also provided a safe haven for production-oriented departments. Second, bureaucratic competition is often controlled by pre-existing veto players?i.e., those who now belong (and originally belonged) to the production sector and developed strong vested interests in the status quo. The way bureaucratic division of labor occurs gives us hints on why innovative institutions perform poorly. Environmental projects that ultimately aim to regulate production must identify the key veto players and incorporate them strategically from the outset if they are to advance their objectives. |
| Keywords: | state inaction , Thailand (Siam) , resource administration , environment , bureaucracy |
| Date: | 2011–12–07 |
| URL: | http://d.repec.org/n?u=RePEc:jic:wpaper:36&r=env |
| By: | Giorgio Gualberti (Instituto Superior Técnico, Lisbon, Portugal); Morgan Bazilian (United Nations Industrial Development Organization, Vienna, Austria); Erik Haites (Margaree Consultants,Toronto, Canada); Maria da Graça Carvalho (Instituto Superior Técnico, Lisbon, Portugal) |
| Abstract: | The United Nations General Assembly declared 2012 the “International Year of Sustainable Energy for All”, officially recognising the urgent need to put energy at the centre of the global development agenda. In parallel, a strong international policy effort is being made to achieve the goal of universal energy access to modern energy services by 2030. To support these efforts, a dramatic scaling-up of financing to the energy sector will be required through official development aid, other official flows, climate financing and various private flows. In this paper we analyse the recent evolution of development policies and finance for the energy sector using both descriptive and analytical tools. We find that, although development finance for the energy sector rose considerably during the past decade, the financial flows have not been directed towards the countries with the lowest levels of energy access. |
| Keywords: | Development Finance, Energy Policy, Energy Access |
| JEL: | F35 Q40 O20 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2012.12&r=env |
| By: | Macours, Karen; Premand, Patrick; Vakis, Renos |
| Abstract: | While climate change is likely to increase weather risks in many developing countries, there is little evidence on effective policies to facilitate adaptation. This paper presents experimental evidence on a program in rural Nicaragua aimed at improving households’ risk-management through income diversification. The intervention targeted agricultural households exposed to weather shocks related to changes in rainfall and temperature patterns. It combined a conditional cash transfer with vocational training or a productive investment grant. We identify the relative impact of each complementary package based on randomized assignment, and analyze how impacts vary by exposure to exogenous drought shocks. The results show that both complementary interventions provide full protection against drought shocks two years after the end of the intervention. Households that received the productive investment grant also had higher average consumption levels. The complementary interventions led to diversification of economic activities and better protection from shocks compared to beneficiaries of the basic conditional cash transfer and control households. These results show that combining safety nets with productive interventions can help households manage future weather risks and promote longer-term program impacts. |
| Keywords: | cash transfers; climate change adaptation; diversification; productive investment; risk-management; shocks; vocational training |
| JEL: | D1 I3 O1 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8940&r=env |
| By: | Kaliappa Kalirajan, (Asian Development Bank Institute (ADBI)) |
| Abstract: | It is logical to argue that 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. Acknowledging this fact, individual governments in Asia have recently been taking effective actions in the form of voluntary targets and policy commitments to improve the production and use of LCGS. However, the observed effects of these commitments are often challenged by many constraints, such as technological barriers, financial deficiencies, and lack of human capital, some of which are very specific to developing Asia. Different sector policies—such as in trade and environment—and investment policies that aim to facilitate private enterprises, households, and government agencies to contribute to green growth through the use of LCGS are being implemented at the national level. However, fears of competitive disadvantage mean that these policies need to be driven by global and regional frameworks that encompass all countries and sectors. In this context, 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: | Green Asia, low-carbon goods and services (LCGS), Asia and the Pacific, the production and use of LCGS |
| JEL: | Q56 Q58 R11 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:eab:tradew:23291&r=env |
| By: | Kaliappa Kalirajan, (Asian Development Bank Institute (ADBI)) |
| Abstract: | It is logical to argue that 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. Acknowledging this fact, individual governments in Asia have recently been taking effective actions in the form of voluntary targets and policy commitments to improve the production and use of LCGS. However, the observed effects of these commitments are often challenged by many constraints, such as technological barriers, financial deficiencies, and lack of human capital, some of which are very specific to developing Asia. Different sector policies—such as in trade and environment—and investment policies that aim to facilitate private enterprises, households, and government agencies to contribute to green growth through the use of LCGS are being implemented at the national level. However, fears of competitive disadvantage mean that these policies need to be driven by global and regional frameworks that encompass all countries and sectors. In this context, 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: | Green Asia, low-carbon goods and services (LCGS), Asia and the Pacific, the production and use of LCGS |
| JEL: | Q56 Q58 R11 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:eab:develo:23291&r=env |
| By: | Kaliappa Kalirajan, (Asian Development Bank Institute (ADBI)) |
| Abstract: | It is logical to argue that 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. Acknowledging this fact, individual governments in Asia have recently been taking effective actions in the form of voluntary targets and policy commitments to improve the production and use of LCGS. However, the observed effects of these commitments are often challenged by many constraints, such as technological barriers, financial deficiencies, and lack of human capital, some of which are very specific to developing Asia. Different sector policies—such as in trade and environment—and investment policies that aim to facilitate private enterprises, households, and government agencies to contribute to green growth through the use of LCGS are being implemented at the national level. However, fears of competitive disadvantage mean that these policies need to be driven by global and regional frameworks that encompass all countries and sectors. In this context, 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: | Green Asia, low-carbon goods and services (LCGS), Asia and the Pacific, the production and use of LCGS |
| JEL: | Q56 Q58 R11 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:eab:govern:23291&r=env |
| By: | Antonio Estache |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:eca:wpaper:2013/115217&r=env |
| By: | Radhika Lal (International Policy Centre for Inclusive Growth); Waldemiro Francisco Sorte Junior (International Policy Centre for Inclusive Growth) |
| Keywords: | Where Biodiversity, Traditional Knowledge, Health and Livelihoods Meet: Institutional Pillars for The Productive Inclusion of Local Communities (Brazi |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipc:wpaper:81&r=env |
| By: | F. Souty (Laboratoire des Sciences du Climat et de l'Environnement); T. Brunelle (Centre International de Recherche sur l'Environnement et le Développement); P. Dumas (Centre International de Recherche sur l'Environnement et le Développement and Centre de Coopération Internationale en Recherche Agronomique pour le Développement); B. Dorin, (Centre International de Recherche sur l'Environnement et le Développement and Centre de Coopération Internationale en Recherche Agronomique pour le Développement); P. Ciais (Laboratoire des Sciences du Climat et de l'Environnement); R. Crassous (Laboratoire des Sciences du Climat et de l'Environnement) |
| Abstract: | Interactions between food demand, biomass energy and forest preservation are driving both food prices and land-use changes, regionally and globally. This study presents a new model called Nexus Land-Use which describes these interactions through a generic representation of agricultural intensification mechanisms. The Nexus Land-Use model equations combine biophysics and economics into a single coherent framework to calculate crop yields, food prices, and resulting pasture and cropland areas within 12 regions inter-connected with each other by international trade. The representation of cropland and livestock production systems in each region relies on three components: (i) a biomass production function derived from the crop yield response function to inputs such as industrial fertilisers ; (ii) a detailed representation of the livestock production system subdivided into an intensive and an extensive component, and (iii) a spatially explicit distribution of potential (maximal) crop yields prescribed from the Lund-Postdam-Jena global vegetation model for managed Land (LPJmL). The economic principles governing decisions about land-use and intensification are adapted from the Ricardian rent theory, assuming cost minimisation for farmers. The land-use modelling approach described in this paper entails several advantages. Firstly, it makes it possible to explore interactions among different types of demand for biomass for food and animal feed, in a consistent approach, including indirect effects on land-use change resulting from international trade. Secondly, yield variations induced by the possible expansion of croplands on less suitable marginal lands are modelled by using regional land area distributions of potential yields, and a calculated boundary between intensive and extensive production. The model equations and parameter values are first described in detail. Then, idealised scenarios exploring the impact of forest preservation policies or rising energy price on agricultural intensification are described, and their impacts on pasture and cropland areas are investigated. |
| Keywords: | Land-use Change, Modelling, Global Biomass Projections |
| JEL: | Q11 Q15 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2012.16&r=env |
| By: | Kimberly Burnett (UHERO, University of Hawaii at Manoa); Sean D'Evelyn (Loyola Marymount University/Affiliate Researcher UHERO, University of Hawaii at Manoa); Lloyd Loope (USGS Pacific Island Ecosystems Research Center); Christopher Wada (UHERO, University of Hawaii at Manoa) |
| Abstract: | Since its first documented introduction to HawaiÔi in 2005, the rust fungus P. psidii has already severely damaged Syzygium jambos (Indian rose apple) trees and the federally endangered Eugenia koolauensis (nioi). Fortunately, the particular strain has yet to cause serious damage to ÔohiÔa, which comprises roughly 80% of the stateÕs native forests and covers 400,000 ha. Although the rust has affected less than 5% of HawaiiÕs Ô?hiÔa trees thus far, the introduction of more virulent strains and the genetic evolution of the current strain are still possible. Since the primary pathway of introduction is Myrtaceae plant material imported from outside the state, potential damage to ÔohiÔa can be minimized by regulating those high-risk imports. We discuss the economic impact on the stateÕs florist, nursery, landscaping, and forest plantation industries of a proposed rule that would ban the import of non-seed Myrtaceae plant material and require a one-year quarantine of seeds. Our analysis suggests that the benefits to the forest plantation industry of a complete ban on non-seed material would likely outweigh the costs to other affected sectors, even without considering the reduction in risk to ÔohiÔa. Incorporating the value of ÔohiÔa protection would further increase the benefit-cost ratio in favor of an import ban. |
| Keywords: | Chinese Saving Dynamics, GDP Growth, Dependent Share, Savings Rate |
| JEL: | Q28 Q51 |
| Date: | 2012–01 |
| URL: | http://d.repec.org/n?u=RePEc:hae:wpaper:2012-1&r=env |
| By: | Lion Hirth (Vattenfall Europe AG) |
| Abstract: | The income that wind and solar power receive on the market is affected by the variability of their output. At times of high availability of the primary energy source, they supply electricity at zero marginal costs, shift the supply curve (merit-order curve) to the right and thereby reduce the equilibrium price of electricity during that hour. The size of this merit-order effect depends on the amount of installed renewable capacity, the slope of the merit-order curve, and the intertemporal flexibility of the electricity system. Thus the price of wind power falls with higher penetration rates, even if the average electricity price remains constant. This work quantifies the effect of variability on the market value of renewables using a calibrated model of the European electricity market. The relative price of German wind power (value factor) is estimated to fall from 110% of the average electricity price to 50% as generation increases from zero to 30% of total consumption. For solar power, the drop is even sharper. Hence competitiveness for large-scale renewables deployment will be more difficult to accomplish than often believed. |
| Keywords: | Wind Power, Solar Power, Electricity Market, Power Generation Economics, Renewables, Value Factor, Numerical Modelling |
| JEL: | Q42 O13 D24 D61 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2012.15&r=env |