nep-env New Economics Papers
on Environmental Economics
Issue of 2012‒05‒08
37 papers chosen by
Francisco S.Ramos
Federal University of Pernambuco

  1. Synergies and Trade-offs between Climate and Local Air Pollution: Policies in Sweden By Bonilla, Jorge; Coria, Jessica; Sterner, Thomas
  2. A model of coopetitive game for the environmental sustainability of a global green economy By Carfì, David; Schilirò, Daniele
  3. The Role of Green Fiscal Mechanisms in Developing Countries: Lessons Learned: Case Study By Sophia Peters
  4. Sustainable Cooperation in Global Climate Policy: Specific Formulas and Emission Targets By Bosetti, Valentina; Frankel, Jeffrey A.
  5. Reducing the environmental footprint of pig finishing barns By Jacobson, Larry D.; Schmidt, David R.; Lazarus, William F.; Koehler, Robert
  6. Indicators to Assess the Effectiveness of Climate Change Projects By Nancy McCarthy; Paul Winters; Ana Maria Linares; Timothy Essam
  7. Super-Additionality: A Neglected Force in Markets for Carbon Offsets By Bento, Antonio; Kanbur, Ravi; Leard, Benjamin
  8. Measuring the Environmental Performance of Metropolitan Areas with Geographic Information Sources By Mario Piacentini; Konstantin Rosina
  9. Performance measurement in environmental management at the local level : an experiment and proposal with reference to Switzerland By Dafflon, Bernard; Daguet, Sandra
  10. Environmental Policy and Directed Technological Change: Evidence from the European Carbon Market By Raphael Calel; Antoine Dechezleprêtre
  11. Maximum Carbon Taxes in the Short Run By Richard Tol
  12. Is There an Environmental Kuznets Curve for Bangladesh? By Faridul, Islam; Muhammad, Shahbaz
  13. Selective logging and the economics of conserving forest wildlife species e.g. orangutans By Tisdell, Clement A.
  14. Centralization and Accountability: Theory and Evidence from the Clean Air Act By Boffa, F.; Piolatto, A.; Ponzetto, G.A.M.
  15. The environmental Kuznets curve for deforestation: a threatened theory? A meta-analysis By K. Herve DAKPO; Pascale COMBES MOTEL; Johanna CHOUMERT
  16. INCREASING RETURN TO SMART CITIES By Lööf, Hans; Nabavi, Pardis
  17. Trade Policy Implications of Carbon Labels on Food By Baddeley, Shane; Cheng, Peter; Wolfe, Robert
  18. Trade liberalisation between Asymmetric Countries with Environmentally Concerned Consumers By G. F. Gori; L. Lambertini
  19. An introduction to the Carbon Farming Initiative: Key principles and concepts By Andrew Macintosh; Lauren Waugh
  20. Forest Land Use Dynamics in Indonesia By Budy P. Resosudarmo; Ani A Nawir; Ida Aju P. Resosudarmo; Nina L Subiman
  21. Households’ Willingness to Pay for Improved Urban Waste Management in Mekelle City, Ethiopia By Hagos, Dagnew; Mekonnen, Alemu; Gebreegziabher, Zenebe
  22. Ex-post Evaluation of Forest Conservation Policies Using Remote Sensing Data: An Introduction and Practical Guide By Allen Blackman
  23. Energy use, emissions, economic growth and trade: A Granger non-causality evidence for Malaysia By Ismail, Mohd Adib; Mawar, Murni Yunus
  24. Expert Elicitation of the Value per Statistical Life in an Air Pollution Context By Hammitt, James; Roman, Henry; Stieb, David; Walsh, Tyra
  25. Economics of Controlling Vertebrate Wildlife: the Pest-Asset Dichotomy and Environmental Conflict By Tisdell, Clement A.
  26. Regional cooperation towards green Asia: Trade in low carbon goods and services By Kaliappa Kalirajan
  27. A Very Real and Practical Contribution? - Lessons from the Kalimantan Forests and Climate Partnership By Erik Olbrei; Stephen Howes
  28. Undesirable specialization in the construction of composite policy indicators: The Environmental Performance Index By Rogge, Nicky
  29. Economics, Ecology and GMOs: Sustainability, Precaution and Related Issues By Tisdell, Clement A.
  30. The impact of commitment on nonrenewable resources management with asymmetric information on costs By Julie Ing
  31. Mapping the scientific knowledge of the Green Chemistry community (In French) By Marianna EPICOCO (GREThA, CNRS, UMR 5113); Vanessa OLTRA (GREThA, CNRS, UMR 5113); Maïder SAINT JEAN (GREThA, CNRS, UMR 5113)
  33. Agriculture, Structural Change and Socially Responsible Development in China and Vietnam By Tisdell, Clement A.
  34. Climate Change Adaptation and Real Option Evaluation By Pasquale Lucio Scandizzo
  35. Assurance et prévention des catastrophes naturelles et technologiques. By Grislain-Letrémy, Céline
  36. Disaster, Generosity and Recovery: Indian Ocean Tsunami By Prema-chandra Athukorala
  37. Le Guangdong, politique chinoise et développement durable By Catherine Mercier-Suissa; Jean Ruffier

  1. By: Bonilla, Jorge (Department of Economics, School of Business, Economics and Law, Göteborg University); Coria, Jessica (Department of Economics, School of Business, Economics and Law, Göteborg University); Sterner, Thomas (Department of Economics, School of Business, Economics and Law, Göteborg University)
    Abstract: In this paper, we explore the synergies and tradeoffs between abatement of global and local pollution. We built a unique dataset of Swedish heat and power plants with detailed boiler-level data 2001-2009 on not only production and inputs but also emissions of CO2 and NOx. Both pollutants are subject to strict policies in Sweden. CO2 is subject to multiple levels of governance using environmental instruments such as the EU ETS and Swedish carbon taxes; NOx – as a precursor of acid rain and eutrophication – is regulated by a heavy fee. Using a quadratic directional output distance function, we characterize changes in technical efficiency as well as patterns of substitutability in response to the policies mentioned. The fact that generating units face a trade-off between the pollutants indicates a need for policy coordination.<p>
    Keywords: Interaction of environmental policies; shadow pricing; directional distance function; climate change; local pollution.
    JEL: H23 L51 L94 L98 Q48
    Date: 2012–04–30
  2. By: Carfì, David; Schilirò, Daniele
    Abstract: The present paper provides a model of coopetitive game for environmental sustainability of a global green economy, looking for a win-win solution within a complex construct of a type originally devised by Branderburger and Nalebuff. The model here suggested is environmental sustainable since it should lead to maintain natural capital, by using mainly renewable resources. In addition, this model of coopetitive games for environmental sustainability aims at reducing emissions of greenhouse gases, determining the reduction of global pollution, in this way it contributes to the establishment of a sustainable and lasting global green economy. Finally, the model determines a change in the patterns of consumption of households towards goods and human behaviors with a lower environmental impact. So the coopetitive strategy, in our model, consists in implementing a set of policy decisions, whose purpose is to be environmental sustainable and to enforce the global green economy. This is why the coopetitive variable is represented by a set of variables that together guarantee the achievement of the environmental sustainability of a global green economy. Thus, this original model aims to enrich the set of tools for environmental policies.
    Keywords: Cooopetitive Games; Coopetition; Environmental Sustainability; Global Green Economy
    JEL: Q42 Q30 C78 C71 Q56 Q20 Q58 C72
    Date: 2012–05
  3. By: Sophia Peters
    Abstract: With an eye toward the Latin American and Caribbean (LAC) Region, this case study provides a practical guide to fiscal instruments that can promote climate change agendas, focusing on lessons learned from country experiences implementing these mechanisms. As most countries have historically relied on regulatory instruments to meet environmental goals, there are few documented studies of green fiscal policies in developing countries. This case study aims to add to that literature. The paper is divided into the following sections. It first discusses the role of fiscal policy in national climate change programming. It then analyzes the fiscal mechanisms used to promote climate change agendas, drawing on developing country cases. It continues to discuss the challenges that the Latin American context poses for green fiscal policy. Finally, it concludes with lessons learned and recommendations from country experiences implementing these mechanisms.
    Keywords: Environment & Natural Resources :: Climate Change, Economics :: Fiscal Policy, Economics :: Monetary Policy, Energy & Mining :: Renewable Energy, Lessons Learned, Green Fiscal Policy, carbon tax, tax policies, fuel taxes, feed-in tariffs,
    Date: 2012–03
  4. By: Bosetti, Valentina (Fondazione Eni Enrico Mattei); Frankel, Jeffrey A. (Harvard University)
    Abstract: We explore a framework that could be used to assign quantitative allocations of emissions of greenhouse gases (GHGs), across all countries, one budget period at a time, as envisioned at the December 2011 negotiations in Durban. Under the two-part plan: (i) China, India, and other developing countries accept targets at Business as Usual (BAU) in the coming budget period, the same period in which the US first agrees to cuts below BAU; and (ii) all countries are asked in the future to make further cuts in accordance with a common numerical formula to all. The formula is expressed as the sum of a Progressive Reductions Factor, a Latecomer Catch-up Factor, and a Gradual Equalization Factor. This paper builds on our previous work in many ways. First we update targets to reflect pledges made by governments after the Copenhagen Accord of December 2009 and confirmed at the Cancun meeting of December 2010. Second, the WITCH model, which we use to project economic and environmental effects of any given set of emission targets, has been refined and updated to reflect economic and technological developments. We include the possibility of emissions reduction from bio energy (BE), carbon capture and storage (CCS), and avoided deforestation and forest degradation (REDD+) which is an important component of pledges in several developing countries. Third, we use a Nash criterion for evaluating whether a country's costs are too high to sustain cooperation.
    JEL: Q54
    Date: 2012–04
  5. By: Jacobson, Larry D.; Schmidt, David R.; Lazarus, William F.; Koehler, Robert
    Abstract: Written for presentation at the 2011 ASABE Annual International Meeting Sponsored by ASABE Gault House, Louisville, Kentucky August 7 – 10, 2011
    Keywords: Swine Housing, Energy, Emissions, Environmental Footprint, Economic Viability, Farm Management, Livestock Production/Industries,
    Date: 2011–08
  6. By: Nancy McCarthy; Paul Winters; Ana Maria Linares; Timothy Essam
    Abstract: Determining reasonable indicators for climate change projects is complicated by the long-term horizon of both mitigation and adaptation project impacts as well as the uncertainty associated with climate change impacts. Actions taken now are often designed to have an impact in the uncertain and distant future and may not directly mitigate or adapt to climate change, but be taken as a step to prepare for future actions. Further complicating identification of indicators is the fact that there is a spectrum of projects, from the pure climate change-focused projects to those that provide climate change benefits as one part of an overall development program, and finally to those with only incidental indirect effects. The objective of this document is to discuss SMART (Specific, Measurable, Achievable, Realistic and Timely) indicators that can be used for assessing the impact of climate change projects, including those that seek to adapt to the expected impacts of climate change and those that promote low carbon emissions growth strategies to mitigate greenhouse gases.
    Keywords: climate chance, indicators, development effectiveness, impact evaluation
    JEL: H43 Q54 Q56
    Date: 2012–04
  7. By: Bento, Antonio; Kanbur, Ravi; Leard, Benjamin
    Abstract: Climate change mitigation programs classify two types of carbon offsets: Additional and non-additional. Additional offsets are offsets that correspond to actual reductions in emissions. In contrast, non-additional offsets are offsets that do not correspond to emissions reductions. These offsets are created because offset projects with business-as-usual (BAU) emissions below their assigned baseline can claim offsets up to the baseline without reducing emissions. Since the sale and use of non-additional offsets by firms in climate mitigation programs has the effect of raising aggregate emissions, an extraordinary amount of focus has been on ensuring that offsets are additional. However, we show here that there is an emissions component that has been neglected in current policy design. This component, which we call Super-additional reductions, are emissions reductions which do not lead to a supply of offsets. Super-additional reductions arise from offset projects with BAU emissions above their baseline. These projects are awarded a quantity of offsets that is lower than the project's emissions reductions. The presence of such emissions reductions without supply of equivalent offsets has the effect of lowering aggregate emissions and lessening the impact of non-additional offsets. Our numerical simulations show that super-additional reductions can be as large as the supply of non-additional offsets, and in some scenarios can even exceed them. Neglecting this component during the climate policy design process can lead to the setting of overly stringent baselines or other policy instruments, ultimately raising the compliance costs of achieving emissions reduction targets.
    Keywords: Additionality and Non-Additionality; Baseline Emissions; Carbon Offsets; Economic Compliance Costs; Emissions targets; Super-Additionality
    JEL: Q52 Q54
    Date: 2012–04
  8. By: Mario Piacentini; Konstantin Rosina
    Abstract: This paper presents recent work undertaken at the OECD to produce environmental indicators at the regional level from geographic data sources. New indicators have been tested and produced in five different domains: a) land cover, b) forest ecosystems, c) urban density, d) CO2 emissions, e) air quality. The indicators measure the environmental performance of administrative regions (OECD TL2 and TL3 regions) and of OECD metropolitan areas. High-quality geographic datasets have been combined and harmonized with the objectives of producing internationally comparable results, and of achieving the largest possible coverage of OECD and non-OECD countries. The results show that geographic information data are a key and underexploited resource for monitoring the state of local environmental assets. There are still methodological and measurement challenges in the use of geographic data for the analysis of environmental changes at the local level. More coordination across national and international programs producing geographic data is needed to further increase their policy relevance.
    Keywords: environment, regional development, Geographic Information Systems
    JEL: Q5 R1
    Date: 2012–04–25
  9. By: Dafflon, Bernard (Department of Economics); Daguet, Sandra (Department of Economics)
    Abstract: This paper deals with the management of three environmental policies at the local level: clean water distribution, sewage and wastewater treatment and household solid waste collection and treatment. The argument is that applying the benefit principle for financing these services will enhance allocative efficiency, budget and environmental accountability, and contribute to induce environmental friendly attitude. The paper is organised in two parts. Because there is no fundamental seminal theory in environmental management, Part One summarizes the analytical foundations in combining three disciplines: political economy, law and environmental accounting. The original contribution of the paper is to mix them in a coherent process which also corresponds to the Directives 2000/60 and 2008/98 of the European Parliament in the fields of water policy and solid waste. Part Two develops a possible technique for defining and measuring the performance in order to assess the feasibility of our proposal. The data cover the 168 communes of the Canton Fribourg for the 1996-2009 period. The tested hypothesis is that the cost coverage ratio is an accurate measure of performance in the management of the selected environmental functions. But for accuracy - thus for improvement in policy implementation and practices - the test requires an in-depth command of the real situations because available data need to be treated before measurement. With the proposed procedure, the results verify efficiency in production, full information and no strategic behaviour from economic agents and politicians, and managerial accountability.
    Keywords: benefit principle of taxation ; environmental accounting ; environmental legislation ; environmental policy ; environmental taxation ; polluter-pays principle ; user charges ; user-pays principle ; performance analysis in environmental management
    JEL: H23 Q53 Q58
    Date: 2012–04–26
  10. By: Raphael Calel; Antoine Dechezleprêtre
    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: O31 Q55 Q58
    Date: 2012–04
  11. By: Richard Tol (Department of Economics, University of Sussex, Institute for Environmental Studies and Department of Spatial Economics, Vrije Universiteit, Amsterdam)
    Abstract: A cap is imposed on the carbon tax rate if the total tax revenue is not allowed to increase. Using recent data on the carbon-intensity of the economy and the overall tax take, I show that this cap constrains almost any climate policy in at least some countries. A larger number of countries, emitting a substantial share of global carbon dioxide, cannot fully participate if the carbon tax (or equivalent alternative regulation) is high enough to meet the 2ºC target. For that target, the carbon tax revenue in 2020 is greater than 10% of total tax revenue in every country.
    Keywords: climate policy, carbon tax, target setting
    JEL: H21 Q54
    Date: 2012–04
  12. By: Faridul, Islam; Muhammad, Shahbaz
    Abstract: The Environmental Kuznets Curve (EKC) posits that environmental degradation increases at the initial stages, but declines as the economy achieves a certain level of economic growth, measured in per capita income terms. This postulated relation produces an inverted Ushaped curve. The topic has drawn much research attention for both developed and emerging economies. Over the past few decades Bangladesh has been achieving remarkable rates of economic growth. A dense population along with a growing industrial base has raised the specter of a looming environmental crisis. The present study empirically investigates the EKC hypothesis for Bangladesh using data from 1971 to 2010. The Autoregressive distributed lag (ARDL) approach to cointegration has been implemented for a long run relation; and the Granger causality within the vector error correction model (VECM) for the short run dynamics. The series are found to be cointegrated. We find that energy consumption is a major contributor to CO2 emissions. Trade openness improves environment, but urbanization worsens it. Economic growth, energy consumption, trade and urbanization Granger cause CO2 emissions. Knowledge of the existence of an EKC relation can help craft appropriate policies to promote economic growth and identify the turning point, and help preserve the environment.
    Keywords: EKC; ARDL; VECM; Bangladesh
    JEL: Q5
    Date: 2012–04–16
  13. By: Tisdell, Clement A.
    Abstract: Analyzes the economics of alternative allocations of forested land for uses (dominant-use vs. multiple use) to ensure the survival of a viable population of a forest-dependent species, e.g. the orangutan. The alternatives are (1) setting aside a sufficient fully protected portion of the forest and allowing the rest to be used for intensive logging and (2) fully protecting none of the forested area but allowing a sufficient portion of it to be lightly (selectively) logged to ensure the survival of the population of the focal species with the remaining land (if any) being available for intensive use.
    Keywords: biodiversity conservation, conserving of forest species, forestry, logging and conservation, opportunity cost and conservation, orangutans, Crop Production/Industries, Environmental Economics and Policy, Land Economics/Use, Q23, Q51, Q57,
    Date: 2011–09
  14. By: Boffa, F.; Piolatto, A.; Ponzetto, G.A.M. (Tilburg University, Center for Economic Research)
    Abstract: Abstract: This paper studies fiscal federalism when voter information varies across regions. We develop a model of political agency with heterogeneously informed voters. Rentseeking politicians provide public goods to win the votes of the informed. As a result, rent extraction is lower in regions with higher information. In equilibrium, electoral discipline has decreasing returns. Thus, political centralization e¢ ciently reduces aggregate rent extraction. The model predicts that a region's benefits from centralization are decreasing in its residents' information. We test this prediction using panel data on pollutant emissions across U.S. states. The 1970 Clean Air Act centralized environ- mental policy at the federal level. In line with our theory, we find that centralization induced a differential decrease in pollution for uninformed relative to informed states.
    Keywords: Political centralization;Government accountability;Imperfect information;Interregional heterogeneity;Elections;Environmental policy;Air pollution .
    JEL: D72 D82 H73 H77 Q58
    Date: 2012
  15. By: K. Herve DAKPO; Pascale COMBES MOTEL (Centre d'Etudes et de Recherches sur le Développement International); Johanna CHOUMERT (Centre d'Etudes et de Recherches sur le Développement International)
    Abstract: Although widely studied, deforestation remains a topical and typical issue. The relationship between economic development and deforestation is still at stake. This paper presents a meta-analysis of Environmental Kuznets Curve (EKC) studies for deforestation. Using 71 studies, offering 631 estimations, we shed light on why EKC results differ. We investigate the incidence of choices made by authors (econometric strategy, deforestation measure, temporal coverage, geographical area, measure of economic development…) on the probability of finding an EKC. After a phase of work corroborating the EKC, we find a turning point after the year 2001. Building on our results, we conclude that the EKC story will not fade until theoretical alternatives will be provided.
    Keywords: Meta-Analysis; Environmental Kuznets Curve; Deforestation, development
    JEL: O13 Q23 C8 C12
    Date: 2012
  16. By: Lööf, Hans (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Nabavi, Pardis (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)
    Abstract: The UN estimates that 70% of the world's growing population will live in cities by 2050. How will this affect climate change, economic growth and economic equality? The first conclusion in this paper is that the growing urban population and increased spatial density create opportunities for policy measures that could limit or reduce carbon emissions. Second, the economic importance of technological spillover, human capital externalities and innovation may have become more important over time. Since all these three factors are positively related to proximity, the implication is that the city's economic importance as a growth engine has become even stronger. The final conclusion is that the distribution of the value added will remain skewed also in the more populated and possible more productive cities.
    Keywords: Agglomeration economies; climate change; innovation; growth
    JEL: O18 O31 Q54 Q55 R11
    Date: 2012–04–27
  17. By: Baddeley, Shane; Cheng, Peter; Wolfe, Robert
    Abstract: Despite the presence of food miles labels and carbon labels on the market for many years, relatively little data is available on how consumers respond to these labels. It is one thing to show people saying in surveys they will use carbon labels, and quite another to have evidence of people actually using them. Carbon labels could be complicated to develop and implement fairly, with significant burdens on producers, especially in developing countries. If the only problem that a carbon label solves is relieving the bad conscience of rich western consumers, then they will be a disaster. Tackling climate change is too urgent to waste time and resources on anything that may prove to be a sideshow.
    Keywords: trade, policy carbon, labels, wto, Agricultural and Food Policy, International Relations/Trade,
    Date: 2011–10
  18. By: G. F. Gori; L. Lambertini
    Abstract: This paper investigates the impact of free trade on welfare in a two-country world modelled as an international Hotelling duopoly with quadratic transport costs and asymmetric countries, where a negative environmental externality is associated with the consumption of the good produced in the smaller country. Countries’ relative sizes as well as the intensity of negative environmental externality affect potential welfare gains of trade liberalisation. In line with Lambertini (1997a) we show that, as long as no trade policy is undertaken by the government of the larger country, trade liberalisation is not feasible since the latter always loses from opening to trade. A subsidy policy in favour of the firm producing the clean good is, on the contrary, shown to give both countries the right incentives to liberalize trade. Allowing for redistributive transfers between countries further extends the parametric range for which trade liberalisation is feasible under the subsidy scheme. The alternative situation, in which the green firm is based in the larger country, is also briefly sketched to find that free trade does give rise to a global welfare increment with no need of accompanying trade policies.
    JEL: F12 L13 H23
    Date: 2012–04
  19. By: Andrew Macintosh; Lauren Waugh
    Abstract: Carbon-based border tax adjustments (BTAs) have recently been proposed by some OECD countries to level the carbon playing field and target major emerging economies. This paper applies a multi-sector dynamic computable general equilibrium (CGE) model to estimate the impacts of the BTAs implemented by US and EU on ChinaÕs sectoral carbon emissions. The results indicate that BTAs will cut down export prices and transmit the effects to the whole economy, reducing sectoral output-demands from both supply side and demand side. On the supply side, sectors might substitute away from exporting toward domestic market, increasing sectoral supply; while on the demand side, the domestic income may be strikingly cut down due to the decrease in export price, decreasing sectoral demand. Furthermore, such shrinkage of demand may similarly reduce energy prices, which leads to energy substitution effect and somewhat stimulates carbon emissions. Depending on the relative strength of the output-demand effect and energy substitution effect, sectoral carbon emissions and energy demands will vary across sectors, with increasing, decreasing or moving in a different direction. These results suggest that an incentive mechanism to encourage the widespread use of environment-friendly fuels and technologies will be more effective.
    Date: 2012–03
  20. By: Budy P. Resosudarmo; Ani A Nawir; Ida Aju P. Resosudarmo; Nina L Subiman
    Abstract: Alternative land use remains a controversial issue in Indonesia, particularly with regard to regions outside Java. This paper aims to highlight forest land use dynamics in Indonesia, and particularly the difficulties of resolving the conflicts between conservation, the need to preserve local livelihoods, the demands of the logging industry, both legal and illegal, and the pressures to convert land from forest use to other uses, mainly agriculture, plantations and mining. The paper also stresses the importance of more research into who benefits from these competing uses of forest lands, and how these benefits have been distributed within Indonesian society. In conclusion, this paper argues that the underlying causes of deforestation in Indonesia are complex, and cover various aspects of market failure, inappropriate policy implementation in relation to forest management, lack of governance capacity at central and district levels, and other, broader socioeconomic and political issues.
    Keywords: forest management, deforestation, plantation, mining, climate change
    JEL: Q23 Q54 Q56 Q58
    Date: 2012
  21. By: Hagos, Dagnew; Mekonnen, Alemu; Gebreegziabher, Zenebe
    Abstract: Cities in developing countries experiencing rapid urbanization and population growth too often lack the financial resources and institutional capacity to provide needed municipal infrastructure for adequate solid waste management, despite citizens’ demand for it. This paper uses a cross-sectional survey of 226 randomly selected households in Mekelle City, Ethiopia, to assess the current municipal sanitation fees and the willingness to pay (WTP) of residents for improved urban waste management, and suggests mechanisms for cost recovery. We used Tobit and probit models in the empirical analysis to determine the factors that influence households’ WTP for improved solid waste management. Results reveal that residents’ WTP for improved solid waste management is significantly related to income and awareness of environmental quality, among other factors. Study results reveal that the current city fee for sanitation is far below the WTP of the residents. The mean WTP we found can be a guide for municipal officials in setting a more appropriate fee that can finance improvements in city SWM, where all households receive collection services, waste is disposed of properly, and recycling and composting features are added.
    Keywords: urban waste management, willingness to pay, cost recovery, developing countries, cities
    JEL: D13 Q51 Q53
    Date: 2012–04–27
  22. By: Allen Blackman
    Abstract: Rigorous, objective evaluation of forest conservation policies in developing countries is needed to ensure that the limited financial, human, and political resources devoted to these policies are put to good use. Yet such evaluations remain uncommon. Recent advances in conservation best practices, the widening availability of high-resolution remotely sensed land-cover data, and the dissemination of geographic information system capacity have created significant opportunities to reverse this trend. This paper provides a nontechnical introduction and practical guide to a relatively low cost method that relies on remote sensing data to support ex-post analysis of forest conservation policies. It describes the defining features of this approach, catalogues and briefly reviews the studies that have used it, discusses the requisite data, explains the principal challenges to its use and the empirical strategies to overcome them, provides some practical guidance on modeling choices, and describes in detail two recent case studies.
    Keywords: forest conservation policy; evaluation; literature review; reduced emissions from deforestation and degradation
    JEL: Q23 Q28 Q56 Q57
    Date: 2012–03
  23. By: Ismail, Mohd Adib; Mawar, Murni Yunus
    Abstract: This paper investigates the relationship among energy, emissions and economic growth in Malaysia with the presence of trade activities. We employ Johansen’s (1995) approach to investigate the relationship. Using annual data from 1971 to 2007, the empirical results shows that there are long-run causalities among energy, emission and economic growth, and among energy, emissions, export and capital, while the short-run Granger non-causality test shows that there are unidirectional causalities running from energy to economic growth and capital, from economic growth to capital and from emissions to export. The short-run results show that the Malaysian data support the growth hypothesis relationship between energy and economic growth, in which the conservation policies such as reduction measures in energy use will not work to improve the environment. In contrast, in the long-run, the feedback hypothesis is observed. Therefore, we suggest the policy makers in Malaysia to focus on long-run conservation policies.
    Keywords: Emissions; Economic growth; Export; VECM; Causality; Impulse-response function; Malaysia
    JEL: C32 Q50 Q43
    Date: 2012
  24. By: Hammitt, James; Roman, Henry; Stieb, David; Walsh, Tyra
    Abstract: The monetized value of avoided premature mortality typically dominates the calculated benefits of air pollution regulations; therefore, characterization of the uncertainty surrounding these estimates is key to good policymaking. Formal expert judgment elicitation methods are one means of characterizing this uncertainty. They have been applied to characterize uncertainty in the mortality concentration-response function, but have yet to be used to characterize uncertainty in the economic values placed on avoided mortality. We report the findings of a pilot expert judgment study for Health Canada designed to elicit quantitative probabilistic judgments of uncertainties in Value-per-Statistical-Life (VSL) estimates for use in an air pollution context. The two-stage elicitation addressed uncertainties in both a base case VSL for a reduction in mortality risk from traumatic accidents and in benefits transferrelated adjustments to the base case for an air quality application (e.g., adjustments for age, income, and health status). Results for each expert were integrated to develop example quantitative probabilistic uncertainty distributions for VSL that could be incorporated into air quality models.
    Keywords: Value per statistical life, air pollution, expert judgment, uncertainty analysis
    Date: 2012–01
  25. By: Tisdell, Clement A.
    Abstract: Some wildlife species are agricultural pests (or otherwise a problem) but their populations are often valued by other than agriculturalists or by those not adversely affected by them directly. For non-farmers, the population levels of such wildlife are frequently pure public goods. This is one source of market failure in the economically optimal social control of an (agricultural) pest of this type. Secondly, if the species is geographically mobile, externalities occur between farmers (or other individuals) in the control of the species, and individuals ignore these spillovers in controlling pest species. Simple analysis is used to show that depending on the relative strength of these opposing types of market failure, farmers (or others) may excessively reduce or insufficiently decrease the population of a wildlife species from a social economic point of view based on the application of the potential Paretian improvement criterion. After providing some background on general methods of wildlife control and their effectiveness, the economic optimality of this control is assessed using simple models. The limitations of this modelling are then discussed paying particular attention to ‘newly emerging’ diseases in wildlife that in some cases impact humans, for example, Henipavirus carried by flying foxes.
    Keywords: agriculture, market failure, pest control, pure public goods, West Bengal, wildlife, zoonoses., Environmental Economics and Policy,
    Date: 2011–09
  26. By: Kaliappa Kalirajan
    Abstract: It is logical to argue that low carbon goods and services (LCGS) led growth is an imperative for the Asia Pacific countries, particularly for the emerging Asian economies, which are heavily dependent on imported energy and resources. Acknowledging this fact, recently, governments in the Asian region individually have been taking effective actions in the form of voluntary targets and policy commitments to improve the production and use of LCGS. While different sectoral policies, such as trade, 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, fears of competitive disadvantage mean that these need to be driven by global and regional frameworks that encompass all countries and sectors. It is in this context, the objectives of this study are (i) to measure the potential of major emerging Asian economies for exports in LCGS under the grand regional cooperation, partial regional cooperation, and stand alone scenarios; and (ii) to measure the impact of existing 'behind the border' constraints on potential exports in emerging Asian economies.
    Keywords: Low carbon goods and services, grand regional cooperation, partial regional cooperation, behind the border, constraints
    JEL: Q56 Q58 R11
    Date: 2012–04
  27. By: Erik Olbrei (Development Policy Centre, Crawford School of Public Policy, The Australian National University); Stephen Howes (Development Policy Centre, Crawford School of Public Policy, The Australian National University)
    Abstract: On 9 September 2007, Australian Ministers and the Indonesian President announced a $100 million Kalimantan Forests and Climate Partnership (KFCP). This would involve protecting 70,000 hectares of peat forests, re-flooding 200,000 hectares of dried peatland, and planting 100 million trees in Central Kalimantan, Indonesia. Since then, the ambitions of KFCP have been quietly but drastically scaled back. The area expected to be re-flooded by the project is now just over 10 per cent of the original target. And little progress has been made on the ground. Four years on, blocking of the large canals required for re-flooding has yet to commence, and only 50,000 trees have been planted against the initial target of 100 million. What has happened to what was labelled at its launch as 'a very real and very practical contribution', one which would yield 'immediate and tangible results'? We analyze KFCP both as an aid 'announceable' and as a REDD (Reducing Emissions from Deforestation and Degradation) demonstration project, and reach two main conclusions. First, KFCP illustrates the damage that an emphasis on announcing new projects and a lack of attention to reporting on project progress can cause aid. Not enough has been done to publicly reposition KFCP as a much smaller, demonstration project. Second, slow progress made in implementing KFCP (and other REDD projects), when juxtaposed against the continued rapid rate of land conversion in Indonesia, suggests that the current approach is not working. There is no easy solution. Reducing deforestation in Indonesia is a difficult task because the drivers of deforestation – which range from weak governance to a strong industry lobby and the attractive economics of palm oil – are strong and difficult to tackle. If it is worth continuing, then the focus on pilots and processes which has characterized Australia's engagement in Indonesia's forestry sector in recent years should be re-oriented towards a more ambitious engagement. This should be supported by a vigorous high-level policy dialogue and at least the realistic prospect of a large amount of public funds.
    Keywords: deforestation, Indonesia, Australian aid, climate change, REDD
    JEL: F35 N55 Q23
    Date: 2012–04
  28. By: Rogge, Nicky (Hogeschool-Universiteit Brussel (HUB))
    Abstract: The non-parametric Data Envelopment Analysis approach is increasingly used to construct composite indicators for country performance monitoring, benchmarking, and policy evaluation in a large variety of fields. The flexibility in the definition of aggregation weights is praised as the method's most important advantage: DEA allows each evaluated country to look for its own optimal weights that maximize the composite indicator relative to the other countries. However, this flexibility also carries a potential disadvantage as it may allow countries to appear as a brilliant performer in a manner that is hard to justify: by ignoring or overemphasizing one or multiple of the judiciously selected performance indicators. To illustrate this issue of undesirable specialization in DEA-based evaluations, this paper compares the Environmental Performance Index (EPI) as computed by the optimistic and pessimistic version of the DEA-model as proposed by Zhou et al. (2007). Based on both computed composites, undesirable specialization in performance is identified.
    Keywords: Data envelopment analysis, benefit of the doubt, Composite indicators, Expert opinion, Undesirable specialization, Environmental Performance Index
    Date: 2012–02
  29. By: Tisdell, Clement A.
    Abstract: Ecological, evolutionary and economic issues involved in introducing genetically modified organisms (GMOs), mainly in agriculture, are discussed. The ecological and evolutionary impacts identified hamper (economic) valuation of GMOs and their biosafety regulation and creates difficulties for planning for sustainable development. Assessment of the desirability of releasing GMOs is difficult because of lack of communal agreement about the risks involved, about how much precaution should be exercised given collective risks, and disagreement on the appropriate social criterion to apply. Changes in legal liability are not always economic and cannot eliminate the social conflict generated by GMOs. The economics of developing and marketing GMOs is explored, assuming the type of intellectual property rights in GMOs in the United States. It is found that the economics of developing and marketing GMOs favours large enterprises as primary suppliers. In marketing GMOs, sales to larger-sized commercial farms rather than smaller-sized ones are preferred. GMOs preferred for development are those designed to satisfy large agricultural markets, mostly located in higher income countries. The patenting of GMOs, co-evolution, various social conflicts in the use of GMOs and legal liability for damages caused by GMOs are discussed both from a socioeconomic and biosafety point of view.
    Keywords: Biodiversity, biosafety, genetically modified organisms, GMOs, intellectual property rights, market structure, sustainable development, Agricultural and Food Policy, Crop Production/Industries, Environmental Economics and Policy, Food Consumption/Nutrition/Food Safety,
    Date: 2011–09
  30. By: Julie Ing (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - École Normale Supérieure - Lyon)
    Abstract: We study the optimal contracts (payment and extraction path) implemented by a regulator unable to commit to long term contracts that delegates the extraction of a nonrenewable resource to a firm. The regulator wishes to maximize the tax revenue and does not know the firm's efficiency which is private information. As the regulator is unable to commit, the ratchet effect appears. We show that the contracts implemented depend on which types of firms exhaust the stock. If both types exhaust the stock, the contracts are fully separating and similar to those implemented under full commitment. The efficient firm produces the first best and gets an informational rent whereas the inefficient one produces lower quantity. If the stock is not exhausted, the contracts are semi separating and the inefficient firm produces higher quantity than under full commitment and the tax revenue is lower. However, those contracts may not be incentive compatible if the discount factor and the second period price are high and thus the regulator may be forced to implement a pooling contract.
    Keywords: Nonrenewable resources; commitment; asymmetric information
    Date: 2012–04–24
  31. By: Marianna EPICOCO (GREThA, CNRS, UMR 5113); Vanessa OLTRA (GREThA, CNRS, UMR 5113); Maïder SAINT JEAN (GREThA, CNRS, UMR 5113)
    Abstract: This paper aims at investigating the dynamics of scientific knowledge underlying the development of Green Chemistry (GC), an emergent field that is expected to pave the way to a more sustainable chemical industry. By reviewing a broad range of secondary sources and interacting with the community of practitioners, we first show how an epistemic community around GC has emerged and materialized. We then build an original database of scientific publications generated by this community and analyze it through two algorithms for the analysis of citation networks. The results allow us to identify and discuss the scientific knowledge that laid the foundations of the GC community and the main scientific trajectory that emerged along its whole evolution. The results also highlight how GC knowledge evolved over time and spread among different scientific journals, subject areas, countries and organizations. We conclude by noting that policy and industry interests, as well as regulation, appear to have played an important role in shaping the GC community.
    Keywords: green chemistry; scientific knowledge; knowledge dynamics; epistemic community; citation network analysis.
    JEL: O30 O57 L65
    Date: 2012
  32. By: Fabrizio Carmignani; Abdur Chowdhury
    Abstract: Despite the recent growth resurgence, Sub-Saharan Africa (SSA) remains the poorest region in the world. At the same time, it is a region that heavily relies on natural resources. In this paper we investigate the extent to which the second fact helps explain the first one. The distinctive feature of our study is that we take a geographical perspective and allow the effect of natural resources to differ across regions of the world. Our findings suggest that (i) the effect of natural resource intensity on per-capita income is positive and significant in general, but almost negligible and possibly negative in SSA, (ii) natural resources have a negative effect on institutional quality in SSA only, (iii) natural resources hinder human capital accumulation in SSA much more than anywhere else, and (iv) the combination of bad disease environments and large resource endowments accounts for most of the observed cross-regional differences in the effect of natural resources.
    Keywords: Development, Sub-Saharan Africa, natural resources, disease, institutions,human capital
    JEL: O11 O55 Q28
    Date: 2011–11–01
  33. By: Tisdell, Clement A.
    Abstract: The gradualism of economic reforms in China and Vietnam (especially in China, which has led the way in this regard) has been commented on favourably by many analysts studying transitional economies. Early market reforms in China and Vietnam were constrained by political considerations and consequently, began in agriculture and in China’s case, in rural areas with the development of town-and-village enterprises as well. It is argued that at the time when the reforms began, they were socially responsible. However, they have created a legacy which has resulted in agricultural land disputes and many town-and-village enterprises now face new economic challenges resulting in social conflict as the structure of China’s economy alters and greater market competition occurs. A further relevant policy issue which is discussed is whether commercial industrialised farming should be encouraged at the expense of the existing predominantly small-scale household farming in China and Vietnam. At present, titles to agricultural land continue to be held by village councils and villagers only have conditional user rights to the land allocated to them. These rights can be taken away by village councils and the use of the land involved can be reallocated which has been increasingly necessary with structural economic change in China and Vietnam. Some villagers believe that their land is taken unfairly and that they are not adequately compensated for its loss. Why this problem exists and the difficulties of solving it are given particular consideration
    Keywords: China, commercialisation of agriculture, economic reform, land rights, town-and-village enterprises, transitional economies, Vietnam., Community/Rural/Urban Development, Environmental Economics and Policy, Farm Management, International Relations/Trade, Political Economy, P21, P25, P31, P32,
    Date: 2012–04
  34. By: Pasquale Lucio Scandizzo (Faculty of Economics, University of Rome "Tor Vergata")
    Abstract: This report illustrates the application of a (relatively) new method to guide decision making under high (and unknowable) levels of uncertainty. The approach allows for the identification of robust policy options that are economically beneficial under different scenarios and varying levels uncertainty. Option value techniques are commonly employed in the finance literature to identify investment decisions that are resilient across a spectrum of outcomes. The methods are technically advanced and conceptually complex but they can be applied with ease with the wide availability of specialized software. The results of a pilot exercise conducted in Campeche suggest that even though global estimates for many costs have been used (such as sea wall construction) the magnitudes are so large that the results seem to be robust and are unlikely to alter dramatically with more refined data. In general options that are modular, build capacity and flexibility are found to lead to more robust and prudent adaptation options. It also suggests that studies at this scale are best conducted ahead of project design – even at the programmatic level - to guide the identification of suitable adaptation approaches.
    Date: 2012–04–27
  35. By: Grislain-Letrémy, Céline
    Abstract: Les catastrophes naturelles et industrielles sont des risques majeurs qui ont pour particularité commune d’avoir une forte empreinte géographique. Leur principale différence est que l’indemnisation des risques naturels repose sur la solidarité, alors que les risques industriels relèvent de la responsabilité privée de l’industriel. Cette thèse apporte des éléments d’évaluation des politiques publiques de prévention et de couverture des risques naturels et technologiques. Chacun des chapitres propose des éléments d’évaluation de ces politiques en analysant notamment les liens entre politiques d’assurance et d’urbanisme (chapitre 2), entre politiques d’assurance et de prévention collective (chapitre 3), entre politiques d’assurance et d’aides publiques (chapitre 4), entre politiques de prévention et immobilier (chapitre 5). Les différents chapitres prennent en compte les liens entre les politiques publiques nationales et locales.
    Abstract: Natural and industrial disasters are major risks with the common specificity of a strong geographic dimension. Their main difference is that compensation for natural disasters relies on solidarity, whereas industrial risks imply the liability of the industrialist. This thesis brings parts of assessment of prevention and coverage policies for natural and industrial risks. Each chapter provides some elements of policies assessment and analyzes in particular links between insurance and urbanism policies (Chapter 2), between insurance and collective prevention policies (Chapter 3), between insurance and assistance policies (Chapter 4), between prevention policies and real estate market (Chapter 5). Interaction between national and local public policies is addressed in each chapter.
    Keywords: natural disasters; industrial disasters; insurance; prevention; public assistance; catastrophes naturelles; catastrophes industrielles; assurance; prévention; aides publiques;
    JEL: R52 Q54 G22 H23
    Date: 2012
  36. By: Prema-chandra Athukorala
    Abstract: This paper is an exploratory investigation into the nature and effectiveness of international humanitarian aid effort after the Indian Ocean tsunami disaster. Relief assistance poured in quickly and copiously, and helped avert 'second mortality' from exposure and starvation in the tsunami-affected countries. Foreign aid also provided a vital leeway in the reconstruction phase, but limited aid absorptive capacity of the recipient countries and excessive competition among aid organizations (mostly NGOs) hindered effective aid utilization. The findings make a strong case for designing policies and programs for dealing with disasters as an integral part of national development strategies and highlight the need for combining international aid commitments with solutions to the limited aid absorptive capacity of disaster-affected countries.
    Keywords: tsunami, natural disasters, foreign aid
    JEL: F35 Q54
    Date: 2012
  37. By: Catherine Mercier-Suissa (EA3713 - Centre de Recherche Magellan - Université de Lyon - Université Jean Moulin - Lyon III); Jean Ruffier (EA3713 - Centre de Recherche Magellan - Université de Lyon - Université Jean Moulin - Lyon III)
    Abstract: Il s'agit d'interroger une politique de la province chinoise du Guangdong visant à moderniser l'appareil productif de la province en contraignant les entreprises à s'inscrire dans le développement durable. Les auteurs décrivent le développement du Guangdong et la politique annoncée par les autorités provinciales, ils discutent la problématique pour conclure sur une certaine cohérence de cette politique en même temps sur une réserve quant à la capacité à atteindre les objectifs fixés.
    Keywords: Développement Durable Chine Guangdong Politique industrielle Economie du Développement
    Date: 2011

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