|
on Environmental Economics |
| By: | Huang, Haixiao; Khanna, Madhu; Onal, Hayri; Chen, Xiaoguang |
| Keywords: | biofuels, policy, greenhouse gas emissions, Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124637&r=env |
| By: | Ruiz-Tagle, J. Cristolbal |
| Abstract: | This paper aims to test experimentally the fundamental economic incentives for countries to pledge reductions in emissions of green-house gases (GHG) at each negotiation of an International Environmental Agreement for Climate Change (IEACC). |
| Keywords: | Resource /Energy Economics and Policy, |
| Date: | 2012–08–12 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124921&r=env |
| By: | Daigneault, Adam J.; Greenhalgh, Suzie; Samarasinghe, Oshadhi |
| Abstract: | Agricultural and forestry GHG emissions are a key feature of New Zealand’s emissions profile, and New Zealand is the only country, to date, to have indicated that agricultural and forestry emissions will be covered under their domestic climate policy – the New Zealand Emissions Trading Scheme. Coupled with climate policy development is the increasing scrutiny of agricultural impacts on water. This paper uses New Zealand Forest and Agriculture Regional Model (NZ-FARM) to assess the potential economic and environmental impacts of imposing both a climate and nutrient reduction policy on the agricultural and forestry industries in the Manawatu and Hurunui/Waiau catchments in New Zealand. We find that adding a scheme that reduces catchment-level nutrients by 20% on top of a national policy that puts a price of $25 per ton carbon dioxide equivalent on agricultural GHG emissions could result in greater environmental benefits at a relatively small cost, but the converse is not always true and could be significantly more costly for landowners. |
| Keywords: | Agriculture and forestry modelling, land use, climate policy, water quality, greenhouse gas emissions, nutrient leaching, Environmental Economics and Policy, |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare12:124284&r=env |
| By: | Mu, Jianhong; Wein, Anne; McCarl, Bruce A. |
| Keywords: | Environmental Economics and Policy, Land Economics/Use, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124835&r=env |
| By: | Guan, Zhengfei |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124684&r=env |
| By: | Kim, Taeyoung; Langpap, Christian |
| Keywords: | Intermediate Forest Management, Carbon Sequestration, Incentive Payments, Price of Carbon, NIPF, Fuel Treatment, Fertilization, Environmental Economics and Policy, Farm Management, Land Economics/Use, Q23, Q54, |
| Date: | 2012–08–14 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124362&r=env |
| By: | Menapace, Luisa; Colson, Gregory; Raffaelli, Roberta |
| Keywords: | Environmental Economics and Policy, Farm Management, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124770&r=env |
| By: | Gopalakrishnan, Sathya; McNamara, Dylan; Smith, Martin D.; Murray, Brad |
| Keywords: | Beach Nourishment, Climate Change, Storms, Optimal control, Environmental Economics and Policy, Resource /Energy Economics and Policy, Q54, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124375&r=env |
| By: | Inter-American Development Bank (IDB); World Wildlife Fund (WWF); Economic Commission for Latin America and the Caribbean (ECLAC) |
| Abstract: | This document is the executive summary of "The Climate and Development Challenge for Latin America and the Caribbean: Options for climate resilient low carbon development", a joint work with Economic Commission for Latin America and the Caribbean (ECLAC) and World Wildlife Fund (WWF), presented in Washington, DC, on June 5th, 2012. The full study will then be launched during the Rio+20 Conference on June 20th. |
| Keywords: | Environment & Natural Resources :: Climate Change, Environment & Natural Resources :: Environmental Policy, Environment & Natural Resources :: Biodiversity & Natural Resources Management, Economics :: Economic Development & Growth, Economics :: Productivity, Economics :: Production & Business Cycles |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:71918&r=env |
| By: | Michetti, Melania; Parrado, Ramiro |
| 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 of 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, although public spending is redirected towards the financing of the forest sequestration subsidy. Comparing public spending and savings in policy costs a net positive balance is reported for all the European regions. Significant reductions in carbon leakage or pressure on food security and deforestation outside Europe are not acknowledged. |
| Keywords: | Climate Change, Climate Mitigation, General Equilibrium Modelling, Forestry, Land Economics/Use, D58, Q23, Q54, Q58, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aieacp:124380&r=env |
| By: | Yu, Chin-Hsien; Park, Seong Cheol; McCarl, Bruce A.; Amosson, Stephen H. |
| Keywords: | Environmental Economics and Policy, Livestock Production/Industries, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124736&r=env |
| By: | Hussein, Zekarias; Golub, Alla A.; Hertel, Thomas W. |
| Abstract: | Mitigating the potential impacts of climate change is one of the leading environmental policy concerns of the 21st Century. However, there continues to be heated debate about the nature, content and, most importantly, about the impact of the policy actions needed to limit greenhouse gas emissions. One major contributing factor is the lack of systematic evidence on the impact of mitigation policy on the welfare of the poor in developing countries. This paper provides quantitative evidence on the poverty impacts of climate change mitigation polices. We consider a scenario whereby a carbon price of $27/tCO2eq is applied to all sectors in all Annex I regions along with a forest carbon sequestration subsidy to all regions. Using a novel economic-climate policy analysis framework, we assess the poverty impacts of the above policy scenario on seven socio-economic groups in 14 developing countries. In general, we find that such a policy scenario increases poverty in 11 out of the 14 countries in our sample. There are, however, differences when we decompose the scenario by policy drivers, including Annex I taxes on CO2 emissions, a tax on Annex I non-CO2 emissions coupled with a forest carbon sequestration subsidy in Annex I countries, and finally, a carbon forest sequestration subsidy in the non-Annex I countries, paid for by the rich countries. More specifically, the non-fossil fuel GHG tax in Annex I countries boosts agricultural production and helps reduce poverty in countries where there are large concentration of the poor in the agricultural stratum. The fossil fuel tax in Annex I countries is, on average, poverty reducing in the sample of 14 developing countries considered here, but the magnitude of the impact is much smaller. A combination of both fossil fuel and non-fossil fuel GHG taxes in the Annex I region, is more effective at reducing poverty in developing countries. Our results show that a forest carbon sequestration subsidy in the developing countries leads to increased poverty and that happens to be the dominating sub-component of the policy package. There are two forces at work here. One is that such a subsidy bids land away from agriculture and brings substantial benefits to land owners. However, the elasticity of poverty to income changes to land is very small for most countries and this translates to smaller changes to poverty reduction. Furthermore, the subsidy bids land away from agriculture and leads to decline in output of the sector and hence factor income. For most countries, the latter effect seem to dominate and hence the worsening poverty. The second impact is that the inflow of the transfer creates a “Dutch disease” effect, which affects the manufacturing output negatively and reduces non-agricultural income substantially. |
| Keywords: | Climate Change, Mitigation Policies, Computable General Equilibrium, Developing Countries, Poverty Headcount, Environmental Economics and Policy, Food Security and Poverty, Q54, C68, F18, I32, R20, O13, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124689&r=env |
| By: | Loureiro, Maria L.; Labandeira, Xavier; Hanemann, Michael |
| Keywords: | Environmental Economics and Policy, International Relations/Trade, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124933&r=env |
| By: | Cho, Seong-Hoon; Tanaka, Katsuya; Wu, JunJie; Chadourne, Matthew H.; Roberts, Roland K.; Kim, Seung Gyu |
| Keywords: | Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124896&r=env |
| By: | Branca, Giacomo; Lipper, Leslie; Sorrentino, Alessandro |
| Abstract: | Agriculture in Africa requires substantial investments, public and private, to increase agriculture productivity and achieve food security. Climate-smart agriculture options showing a win-win potential between food security and climate change adaptation on one side, and mitigation on the other side would enhance the capacity of the agriculture sector to sustainably support food security, incorporating the need for adaptation and the potential for mitigation into development strategies. The paper discusses a three-phase methodology to analyze the national agriculture investment plans with reference to climate change mitigation, through a combination of biological and economic modeling. Agriculture investments which can deliver food security and adaptation benefits are tested for their mitigation potential through a rapid screening methodology aimed at verifying the potential increase in Carbon sequestration and reduction in greenhouse gases (GHG) emissions. The mitigation benefits are estimated using the Ex-ante Carbon balance Tool (Ex-act) which can estimate the impact on GHG emissions and carbon sequestration of different land use and change scenarios. Last, Marginal abatement cost (MAC) curves are built in order to identify the least cost options. MAC curves show the order in which measures can be implemented and the relative cost of mitigation measures. Malawi case study is used as empirical application of the proposed methodology. |
| Keywords: | food security, adaptation, mitigation, benefit-cost analysis, externalities, Environmental Economics and Policy, D61, D62, H54, O13, Q55, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aieacp:124109&r=env |
| By: | Fujii, Hidemichi; Iwata, Kazuyuki; Kaneko, Shinji; Managi, Shunsuke |
| Abstract: | This study examines the relationships between environmental performance and economic performance in Japanese manufacturing firms. The environmental performance indicators include CO2 emissions and the aggregate toxic risk associated with chemical emissions relative to sales. Return on assets (ROA) is used as an indicator of economic performance. We demonstrate that there is a significant, inverted U-shaped relationship between ROA and environmental performance calculated by aggregated toxic risk. We also find that the environmental performance increases ROA through both returns on sales and capital turnover improvement. However, we observe a significant, positive relationship between financial performance and environmental performance based on CO2 emissions. These findings may provide evidence for the consequences of environmental firm behavior and sustainable development. |
| Keywords: | Corporate environmental management; Environmental efficiency; CO2 emissions; Toxic chemical substances; Japanese manufacturing firm; Sustainable development |
| JEL: | L25 L2 L6 P28 |
| Date: | 2012–03–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:39564&r=env |
| By: | Malcolm, Scott A.; Marshall, Elizabeth P.; Aillery, Marcel P.; Heisey, Paul W.; Livingston, Michael; Day-Rubenstein, Kelly |
| Keywords: | Community/Rural/Urban Development, Environmental Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124674&r=env |
| By: | Cyr, Don; Eyler, Robert; Visser, Michael |
| Keywords: | Crop Production/Industries, Environmental Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124807&r=env |
| By: | Golub, Alla A.; Hertel, Thomas W.; Rose, Steven |
| Keywords: | Environmental Economics and Policy, Land Economics/Use, Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124935&r=env |
| By: | Brown, Rachel; Dillon, Carl; Schieffer, Jack |
| Keywords: | Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124941&r=env |
| By: | Garnache, Cloe; Merel, Pierre |
| Keywords: | Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124960&r=env |
| By: | Johnston, Craig; van Kooten, G. Cornelis |
| Keywords: | Environmental Economics and Policy, Research Methods/ Statistical Methods, Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124989&r=env |
| By: | Juarez-Torres, Miriam; Sanchez, Leonardo; Vedenov, Dmitry |
| Keywords: | Environmental Economics and Policy, International Relations/Trade, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124813&r=env |
| By: | Knapp, Keith C.; Franklin, Bradley |
| Keywords: | Environmental Economics and Policy, Land Economics/Use, Resource /Energy Economics and Policy, |
| Date: | 2012–06–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124959&r=env |
| By: | Daigneault, Dr. Adam J.; Morgan, Dr. Fraser |
| Keywords: | Agricultural Finance, Environmental Economics and Policy, Land Economics/Use, Research and Development/Tech Change/Emerging Technologies, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124973&r=env |
| By: | Leszek Kąsek (World Bank); Olga Kiuila (University of Warsaw, Faculty of Economic Sciences); Krzysztof Wójtowicz (UPolish Ministry of Economy, Strategy and Analyses Department); Tomasz Żylicz (University of Warsaw, Faculty of Economic Sciences) |
| Abstract: | We analyze existing definitions of carbon leakage and provide a new rigorous one. This is then tested using computable general equilibrium analysis for unilateral carbon dioxide abatement programs in the EU. Our model of the global economy is disaggregated into three regions. The analysis includes a decomposition of change in carbon emission. While some anti-leakage measures reduce carbon leakage significantly, some of them are less effective. We identified a list of parameters which affect not only the magnitude but also the sign of carbon leakage rate. Manipulating with elasticities of substitution in production function suggests that in reaction to the unilateral action of the EU, the other regions may both increase or decrease their carbon emissions. Even though we are positive about computable general equilibrium models’ application in this policy area, their policy simulations cannot be directly treated as policy recommendations without a careful validation of their assumptions. |
| Keywords: | CO2 abatement, CGE models, EU climate policy, decomposition analysis |
| JEL: | C68 Q54 F47 Q48 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:war:wpaper:2012-12&r=env |
| By: | Baylis, Katherine R.; Honey‐Rosés, Jordi; Ramírez, M. Isabel |
| Abstract: | Decision‐makers are keen to learn which policy instruments are most effective at producing forest conservation outcomes. Using data from a patchwork of programs designed to preserve the overwintering habitat of the Monarch butterfly in central Mexico, we compare the effectiveness of three conservation instruments in limiting deforestation and forest degradation: protected areas, payment for ecosystem services (PES), and forest management. Using a matched sample of one hectare parcels and a spatial lag model of deforestation, we find that for preserving forest, PES is the most effective. Protected area status is ineffective for forest protection while forest management permits also help preserve forest. Forest degradation is not limited by PES or protected area status alone, but the combination of the two instruments significantly reduces forest degradation. Forest management, however, has the largest effect on limiting forest degradation. |
| Keywords: | Payment for Environmental Services, Mexico, deforestation, logging regulation, protected area status, spatial econometrics., Environmental Economics and Policy, Farm Management, Resource /Energy Economics and Policy, Q23, Q28, Q56, R14, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124983&r=env |
| By: | Laukkanen, Marita; Nauges, Celine |
| Keywords: | Common Agricultural Policy, agri‐environmental regulation, nutrient loading, panel data, Finland, Environmental Economics and Policy, Farm Management, |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare12:124347&r=env |
| By: | Richards, Timothy J.; Green, Gareth |
| Keywords: | Demand and Price Analysis, Environmental Economics and Policy, Financial Economics, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124764&r=env |
| By: | Wu, Caiwen; Wu, JunJie |
| Keywords: | Environmental Economics and Policy, Land Economics/Use, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124620&r=env |
| By: | E.M., Sajeev; Ji, Tianyun; Tyner, Wallace E.; Gramig, Benjamin M |
| Abstract: | This paper provides the first comprehensive economic and life cycle analysis for three major proposed cellulosic feedstocks for biofuels: corn stover, miscanthus, and switchgrass. This economic and environmental evaluation is needed to determine if (how) the emissions reduction requirement in the Renewable Fuel Standard (RFS) is (can be) satisfied and can inform decisions about the structure of policies going forward. The study provides an integrated framework for the estimation of emissions and costs associated with cellulosic biofuel production. Costs for each feedstock are estimated under a range of assumptions, and the costs of conversion via both biochemical and thermochemical pathways are estimated to provide total biofuel costs. The cost and emissions results are presented in the context of the RFS, and the economic and environmental implications of the results are analyzed through the lens of environmental and energy policy. |
| Keywords: | Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124917&r=env |
| By: | Antoine D'Autume (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon Sorbonne, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris) |
| Abstract: | We study the optimal extraction of two non-renewable resources when extraction costs depend on cumulative previous extraction. We first define a complete user cost of natural resources, including environmental damages, which allows us to greatly simplify the resolution. This framework is applied to a study of oil and coal optimal extraction. The extraction cost of oil is initially lower than the one of coal but increases more rapidly. Coal leads to higher emissions. In a business as usual scenario the optimal path is to use first only oil, before using the two resources and relying a lot on cheaper coal, until the backstop becomes profitable. When the carbon price is taken into account, the optimal path relies much less on the more polluting coal, and it may be optimal to revert to an oil only trajectory. |
| Keywords: | Natural resources, energy mix, global warming. |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-00707451&r=env |
| By: | Antoine d'Autume (Centre d'Economie de la Sorbonne - Paris School of Economics) |
| Abstract: | We study the optimal extraction of two non-renewable resources when extraction costs depend on cumulative previous extraction. We first define a complete user cost of natural resources, including environmental damages, which allows us to greatly simplify the resolution. This framework is applied to a study of oil and coal optimal extraction. The extraction cost of oil is initially lower than the one of coal but increases more rapidly. Coal leads to higher emissions. In a business as usual scenario the optimal path is to use first only oil, before using the two resources and relying a lot on cheaper coal, until the backstop becomes profitable. When the carbon price is taken into account, the optimal path relies much less on the more polluting coal, and it may be optimal to revert to an oil only trajectory. |
| Keywords: | Natural resources, energy mix, global warming. |
| JEL: | Q42 Q54 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:12037&r=env |
| By: | Call, Isabel; Vosti, Stephen A.; Boucher, Stephen R.; Luedeling, Eike |
| Keywords: | Environmental Economics and Policy, International Development, Research and Development/Tech Change/Emerging Technologies, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:125015&r=env |
| By: | Lange, Ian; Moro, Mirko; Traynor, Laura |
| Abstract: | In the UK, the largest proportion of household energy use is for space heating. Popular media make claims of a green hypocrisy: groups which have the strongest attitude towards the environment have the highest emissions. This study examines whether environmental attitudes and behaviours are associated with space heating energy use using data from the British Household Panel Survey. Results find that environmentally friendly attitudes generally do not lead to lower heating expenditures though environmentally friendly behaviours are associated with lower heating expenditure. Also, the effect of these attitudes and behaviours do not change as income increase. |
| Keywords: | green hypocrisy; heating expenditures; environmental attitudes; BHPS |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:stl:stledp:2012-12&r=env |
| By: | Wang, Jingjing; Baerenklau, Kenneth A. |
| Abstract: | Animal waste from concentrated animal feeding operations (CAFOs) is a significant contributor to the nitrate contamination of groundwater. Some manures also contain heavy metals and salts that may build up either in cropland or groundwater. To find cost-effective policies for pollution reduction at the farm level, an environmental-economic modeling framework for representative CAFOs is developed, where the owner of the operation is a profit-maximizer subject to environmental regulations. The model incorporates various components such as herd management, manure handling system, crop rotation, water sources, irrigation system, waste disposal options, and pollutant emissions. Decision rules from the optimization problem demonstrate best management practices for CAFOs to improve their economic and environmental performance. Results from policy simulations suggest that direct quantity restrictions of emission or incentive-based emission policies such as a field emission tax are much more cost-effective than the standard approach of limiting the amount of animal waste that may be applied to fields. Furthermore, incentive-based emission policies are shown to have advantages over direct quantity restrictions under certain conditions. We also demonstrate the importance of taking into account the integrated effects of water, nitrogen, and salinity on crop yield and nitrate leaching as well as the spatial heterogeneity of nitrogen/water application when designing policy mechanisms. |
| Keywords: | pollution control, policy mechanism, animal waste, crop production, nitrate, groundwater, dynamic optimization, Crop Production/Industries, Environmental Economics and Policy, Farm Management, Livestock Production/Industries, |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124623&r=env |
| By: | Shewmake, Sharon; Okrent, Abigail M.; Thabrew, Lanka; Vandenbergh, Michael |
| Abstract: | We construct a model to predict how consumers will respond to better information about the carbon content of 42 foods and a nonfood composite as well as product categories through a label, and provide guidance as to what kinds of goods would provide the highest CO¬2eq emission reductions through a labeling scheme. Our model assumes that consumers value their individual carbon footprint, allowing us to utilize estimates of own- and cross-price elasticities of demand from the literature on demand analysis. We make three different assumptions about how consumers currently value their carbon footprint and find that when a label informs consumers, their baseline perception matters. We also find that carbon labels on alcohol and meat would achieve the largest decreases in carbon emissions. |
| Keywords: | Carbon emissions, food labeling, Agricultural and Food Policy, Consumer/Household Economics, Demand and Price Analysis, Environmental Economics and Policy, Resource /Energy Economics and Policy, Q53, D83, Q18, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124369&r=env |
| By: | Veronesi, Marcella; Schlondorn, Tim; Zabel, Astrkd; Engel, Stefanie |
| Abstract: | Reducing Emissions from Deforestation and Forest Degradation (REDD+) is an important topic in the debate on policies to mitigate climate change. This is the first study to test and compare the environmental impact of different REDD+ payment schemes in the field, and provide some insights on the effectiveness of different policies with respect to the permanence of forest-based emission reductions. This study implements a stated preference experiment of time allocation in the unique setting of the Kasigau Corridor REDD+ Project in Kenya, where charcoaling is a major source of forest degradation. The impact on time allocation is analyzed under the presumption that a hypothetical agricultural policy or an eco-charcoaling policy was introduced. We find that a policy that indexes eco-charcoal payments to charcoalers’ opportunity costs is the most effective policy in providing permanence in REDD+: it lowers the amount of labor allocated to charcoaling even at high charcoal prices. |
| Keywords: | REDD, permanence, deforestation, labor, Kenya, International Development, I38, J22, O13, Q18, Q23, Q28, Q56, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aieacp:124131&r=env |
| By: | Sneeringer, Stacy E.; Key, Nigel D. |
| Abstract: | Climate change could affect the costs and returns of livestock production by altering the thermal environment of animals thereby affecting animal health, reproduction, and the efficiency by which livestock convert feed into retained products (especially meat and milk). In the United States, concentrated livestock operations are located in a variety of climatic regions, suggesting that the industry could adapt to future changes in temperature and weather patterns resulting from global warming. However, this adaption could be costly. We use nationally representative data on dairy producers coupled with finely-scaled climate data to empirically examine how producers’ costs, returns, and production systems vary across U.S. regions as a function of the local climate. |
| Keywords: | livestock, climate change, dairy, temperature-humidity index, Environmental Economics and Policy, Livestock Production/Industries, |
| Date: | 2012–05–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:125045&r=env |
| By: | Avanzini, Marco; Salvador, Isabella; Gios, Geremia |
| Abstract: | Upland population levels are strongly correlated to environmental dynamics such as morphology, exposure and climate. A temperature fall leads to a shortening of the plant growth season, which can lead to lower pasture productivity and thus livestock can spend shorter periods in the mountains. The aim of this research is to correlate natural climate constraints with variation in the grasslands value in a selection of pastures located between 1100 and 1800 m in the Pasubio Massif (Italian Southern Alps, Trento). The correlation of this trend (derived from historical documents) with climatic oscillations in the same area derived from speleothems reveals that the variation in upland value was strictly linked to temperature and climate variations |
| Keywords: | mountain, climate, pastures, grasslands, Environmental Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aieacp:124126&r=env |
| By: | Adamos Adamou (Department of Economics, University of Cyprus, Cyprus); Sofronis Clerides (Department of Economics, University of Cyprus, Cyprus; Centre for Economic Policy Research, UK); Theodoros Zachariadis (Department of Environmental Science and Technology, Cyprus University of Technology, Cyprus) |
| Abstract: | We estimate demand for automobiles in Greece using a discrete choice model of product differentiation and use the model to evaluate carbon-based tax schemes that could shift consumer purchases towards low-CO2 cars and thus lead to the reduction of fuel use and CO2 emissions. We find that careful policy design, supported by appropriate modeling, can bring about substantial environmental benefits without losing control of economic parameters such as public finances or firm profits. This finding comes in contrast to the results of recent vehicle tax reforms in European countries, which turned out to be more costly than initially expected. Our analysis indicates that, especially in countries with already heavy vehicle taxation, improper implementation of carbon-based taxes can have adverse unintended environmental consequences. |
| Keywords: | automobile market, carbon taxation, emissions, feebates |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:rim:rimwps:33_12&r=env |
| By: | J. Andrew Kelly (AP EnvEcon, NovaUCD); Herman R.J. Vollebergh (PBL Netherlands Environmental Assessment Agency and CentER and Tilburg Sustainability Center, Tilburg University) |
| Abstract: | In the context of transboundary air pollution policy the broad ambition is to achieve reductions in the level of environmental and societal damage associated with certain pollutant concentrations and exposure rates in a cost effective manner. Policy formulation and legislative frameworks in this field, such as the current National Emissions Ceiling Directive in the European Union, are challenged by the degree of scientific complexity involved, the dispersed sources of emissions, and the inherent uncertainties associated with long range forecasting under these conditions. This paper identifies the reasons why varied forms of adaptive policy mechanisms (also termed flexibilities) are necessary and valuable in this arena, presents the critical considerations for their design and operation, reviews a selection of the more prominent options currently considered in the associated transboundary research community, and concludes with recommendations for the next set of transboundary air pollution policy frameworks. |
| Keywords: | Transboundary Air Pollution, Emission Ceilings, Flexibility, Adaptive Policy, Integrated Assessment Modelling |
| JEL: | Q52 Q53 Q58 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2012.32&r=env |
| By: | Sven Rudolph (University of Kassel); Takeshi Kawakatsu (University of Kyoto) |
| Abstract: | Megacities already account for a major part of global energy-related CO2 emissions with a strong tendency to increase; hence, future climate policy has to put a special emphasis on reducing big cities’ energy consumption, especially in a world, where global climate negotiations are deadlocked. Tokyo, the world’s biggest metropolis and emitter of greenhouse gases roughly comparable to Scandinavian countries, started the world’s first megacity carbon market in 2010, the design of which is unique, due to its focus on end-energy use in buildings. While the program only started in 2010, the first results are now available. Hence, the paper answers the question to what extend Tokyo’s new carbon market can be considered a worthwhile model for other cities as well as an additional building-stone in a bottom-up global climate policy regime. By applying up-to-date sustainability economics reasoning, the paper evaluates the design and the recent results of Tokyo’s carbon market, showing that, while there is still room for improvements, Tokyo has the potential to be a world leader in sustainable local climate policy. |
| Keywords: | climate policy, ETS, local, city, Tokyo |
| JEL: | D62 Q48 Q54 Q58 R59 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201225&r=env |
| By: | Mohammad Reza Farzanegan (University of Marburg); Andreas Buehn (University of Utrecht) |
| Abstract: | Environmental quality and climate change have long attracted attention in policy debates. Recently, air quality has emerged on the policy agenda. We calculate a new index of air quality using CO2 and SO2 emissions per capita as indicators and provide a ranking for 122 countries from 1985 to 2005. The empirical analysis supports the EKC hypothesis and shows a significant influence of determinants such as energy efficiency, industrial production, electricity produced from coal sources, and urbanization on air quality. According to our index, Luxemburg, Norway, Iceland, Switzerland, and Japan are among the top 5 countries in terms of air quality performance. The Democratic Republic of Congo, Eritrea, Ethiopia, Togo, and Nepal performed worst in 2005. |
| Keywords: | Air quality, MIMIC model, EKC hypothesis, Development, Emissions |
| JEL: | O56 Q58 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201226&r=env |
| By: | Miller, Steven; Abdulkadri, Abdul; Batie, Sandra S.; Joshi, Satish V. |
| Abstract: | The Michigan Agriculture Environmental Assurance Program (MAEAP) is a voluntary environmental program (VEP) initiated in 1999 by a coalition of state government agencies and agricultural, environmental and conservation groups in Michigan. We survey Michigan livestock producers and conduct discussion group sessions with state environmental regulators to assess the incentives, motivations, and barriers for participating in MAEAP. Economic theory identifies two major motivations for firms’ participation in voluntary environmental programs: ‘regulatory preemption’ and ‘signaling.’ Under a ‘regulatory preemption’ scenario’, firms engage in voluntary pollution reduction through VEPs to reduce the risk of future regulations. Under a ‘regulatory preemption’ scenario’, theory posits that firm participation will be greatest among those most likely to be affected by anticipated future stringent regulations. Survey findings suggested that producers anticipate future expansion of stringent environmental regulation and expected that MAEAP certified farms would be perceived and treated as ‘environmentally’ more responsible. Alternatively, DEQ officials appeared to view MAEAP using the ‘regulatory pre-emption’ lens. Regulators’ and producers’ views were influenced by past political maneuvering of the MAEAP program. |
| Keywords: | Voluntary Environmental Programs, Animal Agriculture, Environmental Policy, Environmental Regulation, Environmental Economics and Policy, Q5, |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:ags:midasp:125071&r=env |
| By: | Zipp, Katherine Y. |
| Keywords: | biological-economic models, land-use, landscape simulation, Environmental Economics and Policy, Land Economics/Use, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124599&r=env |
| By: | Steven Poelhekke; Frederick van der Ploeg |
| Abstract: | We test for pollution haven effects in outward foreign direct investment (FDI) for different sectors using a comprehensive and exhaustive dataset for outward FDI from the Netherlands, one of the most environmentally stringent countries and a major source of global FDI. Our evidence suggests that in the sectors natural resources extraction and refining, construction, retail, food processing, beverages and tobacco, and utilities, a less stringent environmental policy in the host country significantly attracts FDI. What is important for these pollution haven effects is not only regulation but also enforcement of environmental policy. In contrast to earlier results, it is not only footloose industries that display pollution haven effects, but also the traditional pollution-intensive industries. But for the sectors machines, electronics and automotive and transportation and communication a more stringent and better enforced environmental policy attracts more FDI as this may help their reputation for sustainable management and CSR. These sectors display green haven effects. These findings have important implications for the sector distribution of FDI in destination countries. |
| Keywords: | pollution haven, green haven, FDI, environmental policy, regulation, enforcement, strategic effects, footloose industries, CSR |
| JEL: | F18 F23 F13 Q50 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:087&r=env |
| By: | Irfanoglu, Zeynep Burcu; Golub, Alla A.; Hertel, Thomas W.; Henderson, Benjamin |
| Abstract: | Given the likely absence of a “top-down” global agreement after the 2012 expiry of the Kyoto Protocol, many countries (or groups of countries) may only be prepared to introduce a price on GHG emissions if they can maintain the competitiveness of their domestic sectors and prevent leakage effects associated with the expansion of unregulated sectors in other countries. One means of achieving this is through border tax adjustments (BTAs). Most of the studies to date have focused on BTAs in the context of CO2 combustion emissions from manufacturing sectors. Agricultural sectors, on the other hand, account for a large share of the hitherto underemphasized non-CO2 emissions. By drawing on recent research into non- CO2 emissions and abatement possibilities in the global agriculture and livestock sectors, this paper seeks to complement and extend the existing literature on BTAs. To do this, the paper uses the global computable general equilibrium model GTAP-AEZ-GHG. The analysis shows that BTAs are helpful in controlling loss of competitiveness and emissions leakage in livestock sectors. The study also assesses effect of BTAs on emissions leakage in other sectors and relationship between effectiveness of BTAs and coalition size. |
| Keywords: | Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:125006&r=env |
| By: | Taheripour, Farzad; Tyner, Wallace E. |
| Abstract: | Much research has provided estimates of induced land use change and emissions for first generation biofuels. Relatively little has estimated land use change for the second generation cellulosic biofuels. In this paper we estimate induced land use change and emissions for these biofuels. Estimated emissions due to land use changes induced by biofuels production are uncertain not only because their associated land use changes are uncertain, but also because of uncertainty in the land use emissions factors (EFs). This paper also examines uncertainties related to these EFs and their assumptions. Three emissions factors including EFs obtained based on Woods Hole (WH) data, EFs developed by California Air Resources Board (CARB), and EFs obtained from the Terrestrial Ecosystem Model (TEM) are examined. Using these three EFs, induced land use emissions are calculated for several biofuel pathways under alternative assumptions. The land use change results suggest that corn stover (and by implication other crop residues) have no significant induced land use change associated with biofuel production, but that is not the case for dedicated energy crops. Use of dedicated energy crops induces land use change and transfers natural land (in particular forest) to crop production. Producing bio-gasoline from miscanthus generates the lowest land requirement across all alterative pathways. The largest land requirement is associated with the switchgrass. The difference is due largely to the assumed yields of switchgrass and miscanthus in this analysis. The two major conclusions from this emissions analysis are: 1) inclusion or exclusion of cropland pasture makes a huge difference; and 2) there is wide divergence among the emission factor sources, especially for dedicated crop conversion to ethanol. Inclusion of cropland pasture emissions doubles or triples the emissions obtained using the WH EFs. The estimated induced land use emissions for ethanol and bio-gasoline produced from dedicated crops are essentially the same using the WH EFs, but vastly different using the CARB or TEM EFs factors, with cellulosic ethanol producing substantially more emissions. |
| Keywords: | cellulosic biofuels, land use change emissions, Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124407&r=env |
| By: | Luca Spinesi |
| Abstract: | How to control and limit climate change caused by a growing use of fossil fuels are among the most pressing policy challenges facing the world today. The green paradox argues that carbon taxes can exacerbate global warming problem because firms have the incentive to bring forward the sale of fossil fuels. This paper shows that when technological progress allows the extraction costs of fossil fuels to be reduced over time, and a positive R&D subsidy is paid, a growing carbon tax reveals a welfare maximizing policy. |
| Keywords: | Global warming, carbon taxes, technological change |
| JEL: | O13 O30 Q54 H23 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:068&r=env |
| By: | Rabotyagov, Sergey S.; Valcu, Adriana M.; Kling, Catherine L. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2012–05–31 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124371&r=env |
| By: | Chen, Yu-Fu; Funke, Michael; Glanemann, Nicole |
| Abstract: | The quintessence of recent natural science studies is that the 2 degrees C target can only be achieved with massive emission reductions in the next few years. The central twist of this paper is the addition of this limited time to act into a non-perpetual real options framework analysing optimal climate policy under uncertainty. The window-of-opportunity modelling setup shows that the limited time to act may spark a trend reversal in the direction of low-carbon alternatives. However, the implementation of a climate policy is evaded by high uncertainty about possible climate pathways. |
| Keywords: | Climate policy, CO2 scenarios, non-perpetual real options, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:edn:sirdps:320&r=env |
| By: | Egbendewe-Mondzozo, Aklesso; Swinton, Scott M.; Bals, Bryan D.; Dale, Bruce E. |
| Abstract: | This paper compares environmental and profitability outcomes for a centralized biorefinery for cellulosic ethanol that does all processing versus a biorefinery linked to a decentralized array of local depots that pretreat biomass into concentrated briquettes. The analysis uses a spatial bioeconomic model that maximizes profit from crop and energy products, subject to the requirement that the biorefinery must be operated at full capacity. The model draws upon biophysical crop input-output coefficients simulated with the Environmental Policy Integrated Climate (EPIC) model, as well as market input and output prices, spatial transportation costs, ethanol yields from biomass, and biorefinery capital and operational costs. The model was applied to 82 cropping systems simulated across 37 sub-watersheds in a 9-county region of southern Michigan in response to ethanol prices simulated to rise from $1.78 to $3.36 per gallon. Results show that the decentralized local biomass processing depots lead to lower profitability but better environmental performance, due to more reliance on perennial grasses than the centralized biorefinery. Simulated technological improvement that reduces the processing cost and increases the ethanol yield of switchgrass by 17% could cause a shift to more processing of switchgrass, with increased profitability and environmental benefits. |
| Keywords: | biomass production, bioenergy supply, bioeconomic modeling, cellulosic ethanol, environmental trade-off analysis, local biomass processing, spatial configuration, Environmental Economics and Policy, Production Economics, Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124617&r=env |
| By: | Gedikoglu, Haluk |
| Abstract: | The Energy Independence and Security Act of 2007 set a renewable fuel standard of 36 billion gallons of biofuel production by 2022, of which 21 billion gallons are to come from cellulosic sources, such as Switchgrass and Miscanthus.The objective of this study is to measure the impact of innovativeness and environmental stewardship on farmers’ willingness to grow Switchgrass and Miscanthus.The results of the current study show that innovative farmers are not more willing to grow Switchgrass or Miscanthus than late adopters and laggards. Farmers’ environmental stewardship is found to have a negative impact on willingness to grow Switchgrass and Miscanthus |
| Keywords: | Energgy Crops, Innovativeness, Environmental Stewardship, Ordered Probit, Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2012–05–31 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124323&r=env |
| By: | Céline Kauffmann; Cristina Tébar Less; Dorothee Teichmann |
| Abstract: | This paper provides an overview of current government schemes promoting corporate reporting of greenhouse gas (GHG) emissions and analyses their main building blocks. It describes the drivers and challenges for governments, companies and investors in dealing with GHG reporting and includes 4 case studies examining in more depth the domestic GHG emission reporting schemes of the UK, France, Japan and Australia. This work is part of a project with UNCTAD, the Climate Disclosure Standards Board (CDSB) and the Global Reporting Initiative (GRI) on consistency of climate change reporting. |
| Keywords: | corporate governance, climate change, reporting, greenhouse gas emissions, emissions trading, responsible business conduct |
| JEL: | F23 G32 L15 M4 Q56 |
| Date: | 2012–06–12 |
| URL: | http://d.repec.org/n?u=RePEc:oec:dafaaa:2012/1-en&r=env |
| By: | Soto, José R.; Adams, Damian C. |
| Abstract: | The use of carbon markets to regulate greenhouse gasses has been promoted as a cost-effective tool to deal with global warming. These markets often encourage forest landowners to capture carbon in exchange for compensation, by using different platforms that vary in terms of contract length, penalties for withdrawal, etc. These differences in available carbon programs send signals to both consumers, and potential producers of carbon credits, which often cause confusion, price variations, and potential barriers to participation. This study uses one of the most comprehensive lists of Florida non-industrial private forest landowners to implement two different conjoint choice tasks (best worst choice and discrete choice experimentation), which offer multiple options to estimate attitudes of landowners towards different carbon programs, as well as various avenues to estimate willingness to accept. Results indicate that landowners would need between $20 to $30 acre-per-year to be positively affected by revenue, while the inclusion of penalty for early withdrawal increases cost of participation by approximately $4.45 to $10.41 acre-per-year. In addition, this study compares the performance of best worst choice with the traditional discrete choice experimentation method, and finds similar estimates of willingness to accept from both models, but disagreement with overall attribute impact estimates. |
| Keywords: | Best-Worst Choice, Best-Worst Scaling, Discrete-Choice Experimentation, Willingness-to-Accept, Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124830&r=env |
| By: | Torquati, Biancamaria; Marino, Daniela; Porceddu, Pier Riccardo |
| Abstract: | The use of biomass for energy is one of the promising alternatives identified by the European Union to reduce the greenhouse gases emissions and for the energy supply security. The aim of this research is to analyze the potential production, economic and environmental sustainability of the energy produced from the vineyards and olive orchards pruning at the 4 municipalities of Umbria Region. Geo-spatial, economic and environment analysis have been conducted. The integrated approach was used to estimate the total quantity of biomass produced in that area, identify a logistic network for its transportation and finally based on which a power plant has been suggested. The chain costs and the potential profit margins were also calculated and the resulted CO2 emissions into the atmosphere were also been estimated. The results have shown that the fragmentation and the dispersion of agricultural activities as well as technical and logistical decisions affect noticeably the economical and environmental (both in terms of energy balance and CO2 emissions) sustainability of the proposed agri-energetic chain. |
| Keywords: | Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aieacp:124382&r=env |
| By: | Kirby, Mac; Mainuddin, Mohammed; Gao, Lei; Ahmad, Mobin-ud-Din |
| Abstract: | Climate change and the proposed Murray-Darling Basin Plan both result in less water for irrigation. Climate change is projected to take water from all uses including the environment, whereas the likely sustainable diversion limit in the Plan aims (amongst other things) to return water to the environment. We examine the impact on flows and the returns to irrigation of potential reductions in irrigation allocations, and the interaction with projected climate change impacts. Our analysis is based on an integrated hydrology – economics model of the Murray- Darling Basin, described in Kirby et al. (2012a). The model can quickly and easily run new climate or other scenarios, accounting for flows at key environmental assets. It uses a statistically calibrated economic model that can closely predict drought outcomes accounting for allocation, climate and price circumstances. We examined a 2,800 GL reduction to diversions, and compared it to a base case of no reductions. We modelled the flows and irrigation returns for the no reduction and reduction cases under the assumption of historical climate, a median climate change and a more severe climate change. The climate change projections were those examined in the CSIRO Murray-Darling Basin Sustainable Yields project, slightly extended for more recent years. The broad results of this analysis are that: • The reduction of water available to irrigation under the sustainable diversion limit results in a less than proportional reduction in returns to irrigation. A 25 % reduction in water available on average over 114 years is estimated to reduce the gross value of of irrigated agricultural production by about 3 % on average. This is consistent with observation of reduced water availability in the drought (Kirby et al., 2012b, Conner et al., 2012). • Future droughts projected under climate change might be more severe that those experienced to date, with an expectation of greater economic impact; • A median climate change projection removes from the overall system slightly more water than is gained for the environment under the sustainable diversion limit. Under current sharing rules, this reduction in water comes primarily from the environment. The exact impact on flows varies from valley to valley. The impact of climate change is not considered in other analyses of the Murray-Darling Basin plan. 3 • The returns to irrigation are not much affected by a median climate change, with a 2 % reduction in gross value resulting from 3 % reduction in water availability (on top of the reductions due to the diversion limit). This detail in this result depends on the exact form of water sharing rules, and rules will change in the future; we used a default assumption that the behaviour resulting from the rules will be much as it is now. |
| Keywords: | Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare12:124309&r=env |
| By: | Olen, Beau; Wu, JunJie; Langpap, Christian |
| Abstract: | The prospect of climate change has aroused growing interest in the influence of climate and water scarcity on agricultural production. Many studies continue to aggregate disparate crops when modeling irrigation choices. That approach confounds the crop-specific effects of climate and water scarcity that govern irrigation choices. This paper addresses the impact of climate and water scarcity on irrigation choices through models of land proportion irrigated (PI), and crop-specific models of irrigation technology choice (TC) and water application rates (AR). This approach is applied to major crops on the West Coast. Understanding how climate and water scarcity affect crop-specific irrigation choices informs water policy and provides valuable information about how western farmers would respond and adapt to future climate change. |
| Keywords: | crop-specific modeling, irrigation choices, climate, water scarcity, asset heterogeneity, Crop Production/Industries, Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124843&r=env |
| By: | Deller, Steven C.; Halstead, John M.; Jarema, Patricia M.; Keene, Ashleigh Arledge |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:125095&r=env |
| By: | Johnson, Jason L.; Wolfe, Clint; Waidler, David |
| Keywords: | Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124224&r=env |
| By: | Paolo Paruolo (University of Insubria, Department of Economics, Italy); Ben Murphy (European Commission, Joint Research Centre, Institute for Environment and Sustainability, Italy); Greet Janssen-Maenhout (European Commission, Joint Research Centre, Institute for Environment and Sustainability, Italy) |
| Abstract: | This paper uses Vector Autoregressions that allow for nonstationarity and cointegration to investigate the dynamic relation between income and emissions in the period 1970-2008, for all world countries. We consider three emissions compounds, namely CO2, SO2 and a composite global warming index (GWP100). These emissions include energy-related activities with a share varying from 60% (GWP100) to almost 90% (SO2). For all chemical compounds, it is found that for over two thirds of cases income and emissions are driven by unrelated random walks with drift, at 5% significance level. For one quarter of the cases the variables are found to be driven by a common random walk with drift. Finally, for the remaining 4.5% of cases the variables are trend-stationary. Tests of Granger-causality show evidence of both directions of causality. For the case of unrelated stochastic trends, one finds a predominance of emissions causing income (in growth rates), which accords with a production-function rather than with a consumption-function interpretation of the emissions-income relation. The evidence challenges the main implications of the Environmental Kuznets Curve hypothesis, namely that the dominant direction of causality should be from income to emissions, and that for increasing levels of income, emissions should tend to decrease. |
| Keywords: | Environmental Kuznets Curve; Emissions; Income; Cointegration; Common trends |
| JEL: | Q53 Q54 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:rim:rimwps:32_12&r=env |
| By: | Mykoniatis, Nikolaos; Ready, Richard C. |
| Keywords: | Bioeconomics, Eastern oyster, blue crabs, Chesapeake Bay, externalities, optimal management., Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2012–06–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124613&r=env |
| By: | Perkis, David F.; Cason, Timothy N.; Tyner, Wallace E. |
| Abstract: | Tradable emissions permits have been implemented to control pollution levels in various markets around the world and represent a major component of legislative efforts to control greenhouse gas (GHG) emissions in the United States. Because permits are supplied for a fixed level of pollution, allowing the market for permits to determine the price, there is a desire for price control mechanisms which would protect firms otherwise susceptible to price spikes caused by fluctuations in the demand for pollution abatement. We test permit markets in an experimental laboratory setting to determine the effectiveness of several price control mechanisms. Evidence suggests that both permit supply adjustments and traditional price ceilings (hard ceilings) effectively limit elevated prices in this setting. In contrast, reserve auctions (associated with soft ceiling designs) do not consistently control prices, especially when a minimum reserve permit price is applied. Furthermore, the grandfathering of permits allows permit sellers to realize significant welfare gains at the expense of buyers under a soft ceiling policy. Of the two ceiling options, our results point towards a hard ceiling as the preferred mechanism for controlling short term price increases. |
| Keywords: | Tradable Emissions Permit Market, Price Controls, Hard Ceiling, Soft Ceiling, Experimental Economics, Environmental Economics and Policy, Institutional and Behavioral Economics, Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124096&r=env |
| By: | Castiglione, Concetta; Infante, Davide; Smirnova, Janna |
| Abstract: | Recent research has clearly demonstrated that economic development is closely related to environmental quality. In last two decades this relationship has been described by the Environmental Kuznets Curves that postulates an inverted U-shaped relationship between pollution and income. However, while theoretical and empirical research has focused on the polluting effects of economic development, few have identified the policy instruments which can be introduced to counteract such negative effects. This paper concentrates on one of these instruments and examines how environmental taxation is related to economic development. The introduction of environmental taxes usually requires strong regulation capabilities such as effective monitoring and enforcement. We assume that these capabilities reflect the integrity of the institution of rule of law and examine how the strength of rule of law affects the environmental taxation-income path. Data from 28 European countries analysed confirm the existence of an inverse U-shaped relationship between environmental taxation and per capita income. The empirical results clearly demonstrate that the environmental taxation-income relationship is strongly influenced by the rule of law which, when strong, ensures that environmental policies are implemented effectively. A strong rule of law thus contributes to achieving a turning point at lower levels of per capita income. Our analysis also made it possible to identify differences in environmental taxation-income paths among European countries, showing that post-transition economies may have not yet reached the turning point of the curve due to the presence of a weaker rule of law. |
| Keywords: | Environmental taxation; Environmental Kuznets Curve; Rule of law |
| JEL: | O43 P28 H23 Q58 |
| Date: | 2012–02–21 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:39433&r=env |
| By: | Zipp, Katherine Y. |
| Keywords: | non-market valuation, benefit function, open-space conservation, Environmental Economics and Policy, Land Economics/Use, Q, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124600&r=env |
| By: | Aditya Goenka; Saqib Jafarey; William Pouliot |
| Abstract: | We study an overlapping generations economy in which environmental degradation results from economic activity and affects agents' uncertain lifetimes. Life expectancy depends positively on economic activity and negatively on the stock of pollution. This can make the growth-survival relationship convex over some region and lead to two non-trivial steady states, with one is a poverty trap. Uniform abatement taxes can cause the poverty trap to widen while increasing incomes at the high steady state. We also show that the optimal second-best abatement tax is non-homogeneous and increasing in the capital stock, and exhibits a variety of dynamic possibilities: non-existence of a steady state equilibrium, multiplicity of steady state equilibria and optimal policy cycles around some steady states. |
| Keywords: | Overlapping generations model, poverty traps; non-convexities; multiple steady states; pollution; optimal environmental policy; optimal abatement tax |
| JEL: | O11 O13 O23 O44 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:bir:birmec:12-05&r=env |
| By: | Lennox, J.A.; Turner, J.A.; Daigneault, A.; Jhunjhnuwala, K. |
| Abstract: | Adequately representing dynamic characteristics of land use change and forestry in computable general equilibrium models is challenging but essential if modellers are to provide credible assessments of policies that directly or indirectly influence these phenomena. In this paper, we show how a dynamic representation of planted or naturally regenerating forests may be integrated within a neoclassical, intertemporal general equilibrium model. We demonstrate the application of such a model to assess the impacts of including forestry within a hypothetical emissions trading scheme in the US, showing the resulting changes in land use and increases in the optimal rotation length. |
| Keywords: | Intertemporal general equilibrium, optimal forest management, forest carbon credits, Resource /Energy Economics and Policy, |
| Date: | 2012–08–12 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124943&r=env |
| By: | Lamia Kamal-Chaoui; Marissa Plouin |
| Abstract: | This report, developed within the framework of the OECD Green Cities programme, is a pilot case study examining the green growth potential of the Paris-IDF region. In a context of stiff international competition and internal socio-economic and environmental pressures, green growth could be an appropriate path toward revitalising the regional economy and improving environmental outcomes. Building and transportation are among the urban sectors with the greatest potential. Several emerging approaches to a more flexible form of metropolitan governance show promise, yet would benefit from greater private sector involvement throughout the policymaking process. Financing green growth will require the further greening of public revenue sources and the creation of new ones. Adapting procurement processes and pursuing innovative coorerative arrangements with the private sector could also be considered. |
| Keywords: | sustainable development, government policy, planning, global warming, regional, regional economics, urban sustainability, territorial, cities, urban, green growth, climate |
| JEL: | O1 O3 Q1 Q2 Q3 Q4 Q5 R1 R4 R5 |
| Date: | 2012–02–23 |
| URL: | http://d.repec.org/n?u=RePEc:oec:govaab:2012/2-en&r=env |
| By: | Samarasinghe, Oshadhi; Daigneault, Adam J.; Greenhalgh, Suzie; Munguia, Oscar Montes de Oca; Walcroft, Jill |
| Abstract: | This paper uses responses from a regional farmer survey that identify farmers’ perceptions of environmental policies to calibrate a catchment-level environmental economic model (NZ-FARM) to estimate the impacts of a nutrient reduction policy in North Canterbury, New Zealand. The model maximizes farm income across a catchment, accounting for changes in land use, farm output, nutrient leaching, and GHG emissions. Simulations estimate that reducing nutrient loads by 15–30% can be achieved with economic impacts ranging between 1 and 10%, based on how willing landowners are to change how they manage their farm. Farmers are often hesitant to implement certain mitigation options, however, which results in higher economic costs than the ‘optimal’ estimates. Farm-level impacts will likely vary through the current farm practice, the farmers’ attitude towards the regulation, and the ability of policymakers to educate and incentivise landowners to adopt a variety of land management options. |
| Keywords: | Agriculture and forestry modelling, land use, nutrient budgeting, water quality, greenhouse gas emissions, farmer perception towards policy, Agricultural and Food Policy, |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare12:124439&r=env |
| By: | Delin, Huang |
| Abstract: | By establishing the database for and constructing the GTAP-E model of Reduction Potential and Control Policy for Chinese Agricultural Greenhouse Gas Emissions, this paper simulates control policies and the reduction potential of Chinese Agricultural Greenhouse Gas Emissions. The result is that with a 5% reduction China's GDP is reduced by 0.059%, social welfare is increased by 1.16 billion U.S. dollars, there is a 22.08% increase in the price of rice and a 2.9% increase in other crop prices. The price of cattle and sheep increases by 163.43%, the price of pigs and poultry by 0.57%, while other livestock prices fall by 0.98%. With a 5% reduction, the competitiveness of agricultural products in the international market will be reduced, and their export significantly reduced, but increased exports in other sectors result in China's net exports increasing by USD 4.55 billion. Tax levied on agricultural emissions will be USD 22.311 billion. |
| Keywords: | Chinese Agro-Greenhouse Gas Emissions, Reduction Potential, Control Polic, Environmental Economics and Policy, Q56, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:124848&r=env |
| By: | Stefan P. Schleicher (Wegener Center for Climate and Global Change at the University of Graz); Angela Köppl (Austrian Institute of Economic Research) |
| Abstract: | If dangerous and irreversible climatic events are to be avoided, global average temperature should not increase by more than 2°C above pre-industrial levels. In order to achieve such a global target, a mitigation pathway has to limit global emissions to about 50 percent below 1990 levels by 2050. We want to investigate in this paper the radical change of the energy system that would be needed for entering the pathway for halving emission levels by applying a global analytical tool. A comprehensive data base with a global coverage including socio-economic data as well as data on energy and emissions has been set up. By dividing the world into six countries and regions which account for two thirds of global emissions and a region for the rest of the world we investigate in an analytical framework the key drivers and parameters of the energy system which refer to population dynamics, economic activity, energy and carbon intensity. Based on assumptions about the diffusion and convergence of these key parameters we derive implications for long-term emission reduction targets. |
| Keywords: | Greenhouse Gas Emissions Reduction Targets, Energy Forecasts |
| JEL: | Q54 Q47 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2012.36&r=env |
| By: | Jones, Carol A.; Nickerson, Cynthia J.; Heisey, Paul W. |
| Keywords: | Environmental Economics and Policy, Farm Management, International Relations/Trade, Political Economy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124735&r=env |
| By: | Shinsuke Tanaka (Fletcher School of Law and Diplomacy, Tufts University) |
| Abstract: | Developing countries rank highest in air pollution worldwide, yet regulations of such pollution are still rare in these countries, thereby whether, and to what extent, those regulations lead to health benefits remain an open question. Since 1995, the Chinese government has imposed stringent regulations on pollutant emissions from power plants, as one of the first regulatory attempts on a large scale in a developing country. Exploiting the variation in the regulatory status across time and space, we find that infant mortality fell by 21 percent in the treatment cities designated as the so-called gTwo Control Zones." The greatest reduction of mortality occurred during the neonatal period, highlighting the importance of fetal exposure as a biological mechanism, and was largest among the households with low mother's educational attainment. On the other hand, the regulations are found to be uncorrelated with deaths from causes unrelated to air pollution. When the regulatory status is used as an instrumental variable for air pollution reductions, we estimate that the impact of a unit change in total suspended particulates on infant mortality is of similar magnitude to that found in the U.S., but the elasticity is substantially higher in China, suggesting the greater benefits associated with regulations when pollution is already quite high. |
| Keywords: | Environmental regulation, infant mortality, air quality, China |
| JEL: | Q56 I18 Q53 J13 O13 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:hir:idecdp:2-11&r=env |
| By: | Moon, Jin-Young; Apland, Jeffrey; Folle, Solomon; Mulla, David |
| Abstract: | The emergence of markets for cellulosic biofuel feedstocks may lead to substantive tradeoffs between economic and environmental goals in agricultural regions, and will raise environmental and energy policy concerns. This paper examines the potential tradeoffs between cellulosic feedstock production and water quality and analyzes policy options to address those tradeoffs for a northern corn-belt watershed. Policy alternatives considered include restrictions on total nitrate-N load in the watershed and production subsidies for switchgrass - an energy crop with potential environmental benefits. Restricting nitrate-N loads increases the cost of cellulosic feedstock supply and in some circumstances makes switchgrass production an economical alternative. Switchgrass production subsidies, if sufficiently high can increase feedstock supply while reducing or eliminating the negative effects of feedstock production on water quality. |
| Keywords: | Crop Production/Industries, Environmental Economics and Policy, Land Economics/Use, Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:125016&r=env |
| By: | Iskandar, Deden Dinar; Wuenscher, Tobias |
| Abstract: | The degradation of environmental quality has been one of the main concerns in Indonesia. The government has mentioned the environmental tax as the instrument of environmental management; however, the primary potential problem will be the issue of compliance. Inspired by the situation in Indonesia, this study is expected to contribute on environmental regulation and tax compliance literatures by examining and comparing the impact of bribery, financial reward, and religious attitude on compliance in a developing country where the bribery prevails. The study employs laboratory experiment approach. The results indicate that bribery has the strongest impact; the presence of bribery significantly worsens the compliance. Financial reward enhances the compliance only if the bribery is curbed, while religious attitude has no significant impact. |
| Keywords: | Environmental tax, compliance, laboratory experiment, Environmental Economics and Policy, Public Economics, |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare12:124316&r=env |
| By: | Chen, Xuan; Goodwin, Barry K. |
| Abstract: | Our study focuses on modeling wildfire damage in the State of Florida. The approach is to evaluate wildfire risks in a spatio-temporal framework. A block bootstrapping method has been proposed to construct a statistical model accounting for explanatory variables while adjusting for spatial and temporal autocorrelation. Although the bootstrap (Efron 1979) method can handle independent observations well, the strong autocorrelation of wildfire risks brings about a major challenge. Motivated by bootstrapping overlapped blocks methods in an autoregressive time series scenario (Kunsch 1989) and block bootstrapping method of dependent data from a spatial map (Hall 1985), we have developed a method to bootstrap overlapping spatio-temporal blocks. By selecting an appropriate block size, the spatial-temporal correlation can be eliminated. With our saptio-temporal block bootstrapping approach, impacts of environmental factors on SPB outbreaks and implications of pine forest management are assessed. Almost all the explanatory variables, including climate factors, forest ecosystem and socio-economic conditions have been detected to have significant impacts. Consequently, our method offers a way to forecast the future burning risks, given the current influential information of a county. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124804&r=env |
| By: | Davlasheridze, Meri; Fisher-Vanden, Karen; Klaiber, H. Allen |
| Keywords: | natural disasters, hurricanes, property losses, damages, types of adaptation measures, FEMA, public assistance and hazard mitigation grants, Environmental Economics and Policy, Risk and Uncertainty, |
| Date: | 2012–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124565&r=env |
| By: | Sjöberg, Eric (Dept. of Economics, Stockholm University) |
| Abstract: | Earlier literature has established that enforcement of the Swedish Environmental Code varies greatly across municipalities. This is problematic due to differences in application of the law and from an efficiency perspective. This study shows that the variation can to some extent be explained by the ruling political coalition. Green Party representation in the ruling coalition is estimated to have a positive effect on the number of environmental sanction charges handed out by the local environmental offices. A difference in differences approach and IV- estimation is used to address the endogeneity issues. I argue for the random distribution of local party representation in the municipal council and use the absence of local parties as an instrument for Green Party representation in the ruling coalition. |
| Keywords: | Environmental code; Decentralization; Law enforcement |
| JEL: | K32 K42 Q01 |
| Date: | 2012–06–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:sunrpe:2012_0006&r=env |
| By: | Dumortier, Jerome |
| Abstract: | This paper analyzes forest carbon offset credits arising under a possible cap-and-trade system in the United States and its effect on net revenue and commodity prices. A real option model determines the optimal switching from agriculture to forestry under uncertainty in both activities. The key aspects of the model are uncertainty, endogenously determined commodity prices, and spatially explicit modeling in a real option framework. The model is calibrated to counties in the contiguous United States and includes nine major crops and pasture. We show that the highest increase in net revenue occurs in the Southeast and the Northwest with small increases in the Corn Belt. Switching from agriculture to forestry starts occurring early in counties with low crop yields but does not manifests itself immediately in the crop price which results in smaller impacts on commodity prices than previously estimated. |
| Keywords: | Crop Production/Industries, Environmental Economics and Policy, Land Economics/Use, Resource /Energy Economics and Policy, Risk and Uncertainty, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124632&r=env |
| By: | Rizio, Dina; Gios, Geremia |
| Abstract: | The forest is an ecosystem that can produce environmental services from which individuals benefit. In recent decades, the interest in these services has significantly increased and changed to meet new needs. The demand for wood has gradually become integrated into the demand for new products and services related to landscape use and recreational activities. These new products and services are defined as Non-Wood Forest Products and Services (NWFP&SSs). With this interest in services and products associated with the recreational use of forests and forest tourism, a possibility and in certain cases a need exists to introduce a system of payment for these services. The purpose of such a payment system is to resp pond to this demand and to promote the sustainable development and management of forests as well as diversify and increase the income of the community whose economy is based directly on forest resources. However, the transformation of forest environmental goods and services into commercial products and services is not straightforward. The transformation depends on endogenous and exogenous factors related to the forest system. Problematically, NWFP&Ss are frequently viewed as public goods. From this standpoint, they are considered free of cost to users. Therefore, to introduce a payment mechanism is difficult. However, this paper proposes to collect information on what factors can help to transform these e externalities into sources of income for people living near the forests. |
| Keywords: | payment for environmentall services, forest resources, non-wood forest product ts and services, landscape, tourism., Resource /Energy Economics and Policy, Q26, Q23, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aieacp:124114&r=env |
| By: | Owens, Katherine |
| Abstract: | It is uncertain whether market-based water allocation regimes can be successfully deployed to deliver water for environmental needs, with uneven results demonstrated across jurisdictions that have experimented with markets as a regulatory tool. The Paper will compare and evaluate the regulatory and institutional tools adopted in Australia, Colorado and Alberta for environmental water requirements. It will then outline four key lessons that have emerged from the comparative analysis that can inform the design and implementation of market-based water allocation regimes to promote environmental objectives. |
| Keywords: | Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare12:124354&r=env |
| By: | Liu, Hongmei; Huang, Qiuqiong |
| Keywords: | Environmental Economics and Policy, Land Economics/Use, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:123952&r=env |
| By: | Bucaram, Santiago; Sanchirico, James N.; Wilen, James E. |
| Keywords: | Environmental Economics and Policy, Institutional and Behavioral Economics, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124652&r=env |
| By: | Roberts, Michael J.; Tran, A. Nam |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124869&r=env |
| By: | Liu, Jing |
| Abstract: | Using fine-scale climate process, we investigated the relationship between extreme surface water runoff and property damages caused by flood in the U.S. Special attention was paid to disentangle effects of extreme weather and social wealth accumulation. We find it is still premature to claim that extreme weather events becomes more destructive due to anthropological climate change, if take into account the increasing values exposed to natural hazards. |
| Keywords: | Environmental Economics and Policy, Productivity Analysis, Risk and Uncertainty, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124992&r=env |
| By: | Röder, Norbert; Osterburg, Bernhard |
| Abstract: | Roughly 4.9% of the German utilized agricultural area is located on organic soils (fens and bogs). Nevertheless, the drainage of these areas in order to allow their agricultural utilization causes roughly a third of the greenhouse gas emissions (GHG) of the German agricultural sector, being equivalent to 2.3% of the total German GHG emissions. Obviously, German policies trying to reduce the GHG emissions successfully must tackle this issue. The abandonment of the cultivation of organic soils would be an effective policy to reduce the GHG emissions however the question remains whether it is an efficient measure compared with the other options? In the paper we assess the mitigation costs on the basis of the standard gross margin and tenure of the agriculturally used peatlands and with the sector model RAUMIS. Without engineering and transaction costs the mitigation costs are below 50 € per Mg CO2eq. This makes rewetting of peatlands at least in the medium and long run a fairly efficient options for reducing GHG emissions, especially as the implications on the sector due to reallocation affects are fairly small. |
| Keywords: | GHG-Mitigation, Landuse, peatland, Agricultural and Food Policy, Environmental Economics and Policy, Land Economics/Use, Q24, Q54, Q57, Q58, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:125134&r=env |
| By: | Pancharatnam, Padmaja; Aisabokhae, Ruth |
| Abstract: | The inverted U shaped hypothesis between various indicators of environmental degradation and income per capita otherwise known as the Environmental Kuznets Curve (EKC) has gained immense popularity over the past twenty years. Cross-country panel data methods are generally adopted to study the relationship amongst the variables of interest with a possible drawback being that a certain causality structure is presumed to be true. The Directed Acylical Graph technique reveals the underlying causal structure amongst variables. This could aid in the selection of a better regression model. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124854&r=env |
| By: | Borsky, Stefan; Raschky, Paul A. |
| Abstract: | This paper provides an empirical analysis of the role of intergovernmental relations on a country's eort to enforce the objectives of an international environmental agreement on an open access resource. Intergovernmental interaction allows signatory countries to observe compliance behavior of other signees and to punish non-compliance by applying bi- and multilateral sanctions. We use a cross-sectional dataset that contains country level information about compliance with Article 7 of the 1995 UN Code of Conduct for Responsible Fisheries. Our identi cation strategy combines a spatial autoregressive model with spatial autoregressive disturbances and an instrumental variable approach. We nd a strong positive eect of other countries' compliance on the individual country's compliance score. These results suggest that repeated interactions among participants might not only play a role in enforcing the obligations of an agreement at the community level but also have an impact at the international level. |
| Keywords: | International environmental agreements, open access resources, spatial econometrics, Environmental Economics and Policy, C21, F53, Q22, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare12:124425&r=env |
| By: | Baptiste Perrissin Fabert (Centre International de Recherche sur l’Environnement et le Développement (CIRED)); Patrice Dumas (CIRED/CIRAD); Jean-Charles Hourcade (CIRED) |
| Abstract: | Given disparate beliefs about economic growth, technical change and damage caused by climate change, this paper starts with the seeming impossibility of determining a unique time profile of the social costs of carbon as a benchmark for climate negotiations and for infrastructure decisions that need to be made now in the absence of an inclusive international accord on climate policies. The paper demonstrates that determining a workable range of the social costs of carbon is however possible in a sequential decision-making framework that permits revising initial decisions in the light of new information. To do so, the paper exploits the results of a stochastic optimal control model run for more than 2000 scenarios that represent the set of beliefs presented about key uncertain parameters in the literature. The paper provides a heuristic mapping of the climate debate in the form of six “clubs of opinions” and shows the possibility of determining a range of social costs of carbon that might permit a compromise between the maximum range of “clubs” and those most likely to emerge in the future. |
| Keywords: | Optimal control, Mitigation, Social Cost of Carbon, Uncertainty |
| JEL: | Q54 Q21 D81 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2012.34&r=env |
| By: | Katie Johnson (Fondazione Eni Enrico Mattei); Margaretha Breil (Fondazione Eni Enrico Mattei) |
| Abstract: | Urban areas have particular sensitivities to climate change, and therefore adaptation to a warming planet represents a challenging new issue for urban policy makers in both the developed and developing world. Further to climate mitigation strategies implemented in various cities over the past 20 years, more recent efforts of urban management have also included actions taken to adapt to increasing temperatures, sea level and extreme events. Through the examination and comparison of seven cities, this paper identifies the various levels of administrative adaptation planning, the tools and information used in making policy choices, and the roles of governance and finance in urban adaptation to climate change. Lessons learned from these seven cases are presented to better inform the next generation of cities adapting to climate change. |
| Keywords: | Cities, Urban Areas, Adaptation, Climate Change, Governance |
| JEL: | Q54 Q58 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2012.29&r=env |
| By: | Mohammad Reza Farzanegan (University of Marburg); Tim Mennel (Center for European Economic Research (ZEW)) |
| Abstract: | We estimate the impact of fiscal decentralization on different indicators of pollution for more than 80 countries from 1970 to 2000. Our cross country estimates show that fiscal decentralization increases pollution. However, higher quality of institutions can limit the destructive environmental effects of decentralization. The empirical results confirm a strand of the literature on decentralization that predicts a “race to the bottom” under federalism. The mitigating effect of good governance can be explained by relative preferences of local and central governments for environmental quality. |
| Keywords: | decentralization, pollution, environmental quality, institutions |
| JEL: | C21 H11 H72 Q53 Q56 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201222&r=env |
| By: | Heaney, Anna; Beare, Stephen; Brennan, Donna C. |
| Abstract: | The regulation of river systems to meet water demands for irrigation in the southern Murray Darling Basin has changed the timing and the volume of the natural pattern of flows. Australian governments have committed to restoring, in part, winter and spring flow regimes to preserve and enhance the riverine environment. These changes will involve trade-offs against the foregone returns to agriculture and between different environmental objectives. To better understand these trade-offs, environmental flow objectives are specified as a change in the inter-arrival time distributions of winter and spring flow events, ranging from brief flooding events to the inundation of flood plains and wetlands over several weeks. Expected costs, and hence the trade-offs, depend on the required volume, the threshold inter-arrival time between environmental watering events, and the acceptable probability of exceeding that threshold time. The economic costs of meeting environmental flow objectives will depend on prevailing climatic conditions. The key to minimising costs to other water users is to time the environmental release to avoid periods of low water availability and take advantage of periods of high availability while still meeting the flow objectives. In doing so, an environmental manager must weigh current environmental condition against the likelihood of more or less favourable conditions in the future. A stochastic optimisation model is used to develop release strategies based on a known set of stream inflows and evaluated against a randomised sequence of unknown flows. The model is used to elicit the economic trade-offs associated with environmental flow objectives and the threshold inter-arrival time between events. The model was also used to examine how different institutional arrangements affect the economic efficiency of delivering these objectives. |
| Keywords: | Environmental Economics and Policy, Risk and Uncertainty, |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare12:124315&r=env |
| By: | Matthew Ranson; Robert N. Stavins |
| Abstract: | The outcome of the December 2011 United Nations climate negotiations in Durban, South Africa, provides an important new opportunity to move toward an international climate policy architecture that is capable of delivering broad international participation and significant global CO2 emissions reductions at reasonable cost. We evaluate one important component of potential climate policy architecture for the post-Durban era: links among independent tradable permit systems for greenhouse gases. Because linkage reduces the cost of achieving given targets, there is tremendous pressure to link existing and planned cap-and-trade systems, and in fact, a number of links already or will soon exist. We draw on recent political and economic experience with linkage to evaluate potential roles that linkage may play in post-Durban international climate policy, both in a near-term, de facto architecture of indirect links between regional, national, and sub-national cap-and-trade systems, and in longer-term, more comprehensive bottom-up architecture of direct links. Although linkage will certainly help to reduce long-term abatement costs, it may also serve as an effective mechanism for building institutional and political structure to support a future climate agreement. |
| JEL: | Q28 Q38 Q48 Q5 Q58 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:18140&r=env |
| By: | Mottaleb, Khondoker A.; Rejesus, Roderick M.; Mohanty, Samarendu; Murty, MVR; Li, Tao; Valera, Harold Glenn; Gumma, Murali Krishna |
| Abstract: | Rice productivity and sustainability are continually threatened by abiotic stresses, particularly in the era of global climate change. In severe cases, 100% yield loss can be experienced due solely to abiotic stresses, such as drought. The situation may become worse due to climate change that may multiply the frequency and severity of such abiotic stresses. Hence, there is an urgent need to develop improved varieties that are more resilient to abiotic stresses. This study examines the net economic benefit and potential economic impacts of developing and disseminating a drought tolerant rice variety in South Asia. Drought is one of the most destructive abiotic stresses that not only causes major rice yield losses in South Asia, but also in other parts of Asia and Africa. Using the ORYZA2000 crop simulation model, we demonstrate that the new variety can provide yield gains in South Asia both when there is no change in the climate and also under the different climate scenarios projected by CGCM climate model. Moreover, our economic surplus analysis shows that the economic benefits from the successful development and dissemination of a drought tolerant variety more than outweigh the research investments needed to develop the variety. The partial equilibrium models we used also indicate that rice production is higher and rice prices are lower when a drought tolerant variety is adopted in South Asia (as compared to the case without this new variety). This in turn can lead to more sustainable rice production, improved food security, and better nutritional outcomes for the poor. |
| Keywords: | Climate Change, Drought Tolerance, Ex Ante Economic Impact, Rice Varieties, South Asia, Crop Production/Industries, Environmental Economics and Policy, Food Security and Poverty, C59, D01, Q25, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124745&r=env |
| By: | Mohammad Reza Farzanegan (University of Marburg); Gunther Markwardt (University of Dresden) |
| Abstract: | The Middle East and North Africa (MENA) countries are among the world's top emitters of CO2 and SO2 in per capita terms. The objective of this paper is to analyze whether investing in the democratic development of these countries is an eective tool to make the economic growth in this region more environmentally compatible. Arguing on the basis of the Environmental Kuznets Curve hypothesis and using panel data on the income-emissiondemocracy nexus, we nd evidence that improvements in the democratic development of the MENA countries help to mitigate environmental problems. Our results clearly show, that the quality of democratic institutions has a greater in uence on local environmental problems than on global environmental issues in the MENA region. |
| Keywords: | democratic development; political institutions, environmental quality; MENA |
| JEL: | O56 Q58 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201227&r=env |
| By: | Haim, David; Plantinga, Andrew J.; Thomann, Enrique A. |
| Keywords: | Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:125066&r=env |
| By: | Sun, Baojing; Bell, Peter; van Kooten, G. Cornelis |
| Keywords: | Crop Production/Industries, Environmental Economics and Policy, Risk and Uncertainty, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124990&r=env |
| By: | Halkos, George; Tzeremes, Nickolaos |
| Abstract: | Based on the theoretical background of the link between countries’ transparency and environmental policy our paper provides empirical evidence for a sample of 68 countries for the time period of 2001-2010. By assuming that countries’ transparency levels shape their environmental policy which reflects upon their environmental performance levels, we develop an empirical model for investigating such a relationship. By modifying a conditional directional distance function model, we incorporate on the measurement of countries’ environmental performance the effect of their public sector transparency levels. The empirical results indicate that public sector transparency has a statistically significant impact on countries’ environmental performance with the relation in the case of emerging-developing economies appearing as an inverted ‘W’ shape, whereas in the case of advanced-developed economies indicating an inverted ‘U’ shape. |
| Keywords: | Conditional directional distance function; Corruption perception index; Environmental performance; Nonparametric regression |
| JEL: | D73 Q50 Q00 C14 H00 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:39553&r=env |
| By: | English, Alicia; Tyner, Wallace E.; Sesmero, Juan; Owens, Phillip; Muth, David |
| Keywords: | Crop Production/Industries, |
| Date: | 2012–08–12 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124873&r=env |
| By: | Sassi, Maria |
| Abstract: | The paper simulates the possible sorghum price change and the related probability of occurrence under different rainfall scenarios and in a context of price uncertainty on international markets. The empirical investigation is based on the stochastic approach. Results underline an expected increase in sorghum price under the effect of the high level of uncertainty in precipitation and in international market price; the most intense likely change produced by the international market price of sorghum uncertainty; the need to overcome the agricultural view in policy making in order to include a market perspective. |
| Keywords: | Climate change, Drought, Food prices, Stochastic approach, Sudan, Environmental Economics and Policy, Q18, Q54, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aieacp:124111&r=env |
| By: | Howard, Peter H. |
| Abstract: | Scientists predict that climate change will cause suitable habitat ranges to shift for many plant species. To the extent that proximity to particular vegetation types increases residents’ utility and/or these shifts affect services valued by all of society, such geographic shifts in ecosystems may significantly affect societal welfare. In this paper, I estimate the possible welfare change from the marginal loss of blue oak due to development and climate change in the Tulare Lake Basin (Fresno, Kern, and Tulare Counties) in California. Using a hedonic pricing model, the marginal values of blue oaks and the land cover types most likely to replace them (herbaceous, urban, and crop land) are estimated at multiple spatial scales, using 1997-2003 sales of single family residences for the Tulare Lake Basin. In addition to the common identification problems of specification error, omitted variable bias, and multicollinearity, the variables measuring the degree of proximity of a property to land cover types are endogenous. To identify the marginal values of land cover types at multiple spatial scales using two-stage least squares, instrumental variables are developed using soil data. Cluster robust standard errors are calculated due to spatial autocorrelation within neighborhoods. Results indicate that households do not differentiate between vegetation land cover types; there is no indirect cost of climate change resulting from marginal shifts in land cover types. The results also indicate that Tulare Lake Basin households are unlikely to be negatively affected by, and may actually benefit from, marginal losses of blue oak woodlands to agriculture and urban land use. These results highlight the importance of non-use and ecosystem services values, and the importance of coordinating land use policies at spatial scales above the municipality level. |
| Keywords: | Environmental Economics and Policy, Land Economics/Use, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124744&r=env |
| By: | Tran, A. Nam; Welch, Jarrod R.; Lobell, David; Roberts, Michael J.; Schlenker, Wolfram |
| Abstract: | Mounting evidence indicates climate change will adversely influence agricultural crop yields and cause greater year-to-year variability. This paper considers how a rational, forward-looking and competitive commodity market would account for these anticipated changes and thereby influence time path of storage, prices, price volatility, and social welfare. We forecast 1600 hypothetical yield paths from 2000 to 2080 using estimates from a recent global statistical analysis of weather and crop yields combined with projections from 16 climate models. We then extend the dynamic competitive storage model to account for land response to price and anticipated yield shift. We simulate 1600 stochastic-equilibrium price paths under climate change relative to a baseline of stable prices using our hypothetical yield paths together with estimated demand and supply elasticities and storage cost from the literature. Our results indicate that, under the impact of climate change, world crop price level will increase twofold and world crop price volatility will increase vefold between 2000 and 2080. Welfare analysis suggests that by 2020, the world would have welfare loss equivalent to food for 180 to 200 million people annually. |
| Keywords: | Crop Production/Industries, Demand and Price Analysis, Environmental Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124827&r=env |
| By: | Kwansoo Kim; Jean-Paul Chavas; Bradford Barham; Jeremy Foltz |
| Keywords: | Environmental Economics and Policy, Risk and Uncertainty, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124814&r=env |
| By: | Davis, Katrina J.; Pannell, David J.; Kragt, Marit Ellen |
| Abstract: | The Fitzgerald River National Park is one of the world’s 25 biological hotspots, containing many endemic flora and fauna species. Its unique biodiversity is being threatened by the introduced root pathogen, Phytophthora cinnamomi. We evaluate the cost-effectiveness of strategies to manage Phytophthora cinnamomi in the park, using the Investment Framework for Environmental Resources (INFFER). Management strategies based on current and higher investment levels are shown to have high Benefit Cost Indices. These results support the use of public conservation funds to address the threat of Phytophthora cinnamomi, and show the need for improved understanding of the impact and the adoption of strategies. |
| Keywords: | Cost-effectiveness, economic investment framework, Phytophthora cinnamomi, Resource /Energy Economics and Policy, |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare12:124288&r=env |
| By: | Lange, Ian; MacPherson, Ronnie |
| Abstract: | A number of countries offer domestic consumers the option of buying their electricity supply through a ‘green tariff', whereby the supplier typically guarantees that all or part of the supply has been generated using renewable energy sources. Various studies have sought to identify variables describing and/or predicting why domestic consumers choose to purchase a green tariff. This study builds on previous work by reviewing the UK market in particular. Using data from the Understanding Society Survey (USS), a number of variables were tested for their predictive power. This included variables identified as statistically significant within other studies, and variables that - to the authors' knowledge - have not been tested through other work. Results find that individuals in the highest income quartile, those with higher qualifications, those supporting the Green political party, those exhibiting strong environmental behaviour and those householdsnot in receipt of winter fuel payments were all more likely to have purchased green tariffs. Significant to a lesser degree were strong environmental attitudes and those households with some form of renewable energy technology |
| Keywords: | Green Tariff; Environmental Attitudes and Behaviours; Household Decision Making |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:stl:stledp:2012-11&r=env |
| By: | Fraser, Rob W. |
| Abstract: | Motivated by recent EC proposals to “strengthen risk management tools” in the CAP in relation to farmers’ increased exposure to market price risk, this paper draws attention to a potential negative consequence of such a change in the CAP – an associated increase in cheating behaviour by farmers in the context of environmental stewardship. A theoretical framework for this policy problem is developed and used not just to illustrate the problem, but also to propose a solution – specifically to combine the introduction of CAP-supported policy changes which reduce farmers’ exposure to market-based risk with changes in environmental stewardship policies which increase the riskiness of cheating and thereby discourage such behaviour. |
| Keywords: | Demand and Price Analysis, Environmental Economics and Policy, Risk and Uncertainty, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare12:124305&r=env |
| By: | Lee, Jaehyuk; Nadolnyak, Denis |
| Abstract: | Global warming has been an issue lately in many aspects because it has been in increasing trend since 1980s. This paper estimates the climate change effects on U.S. agriculture using the pooled cross-section farm profit model. The data are mainly based on the annual Agricultural Resource Management Survey (ARMS) from USDA for the time period between 2000 and 2009 in the 48 contiguous States. For climate measure, growing season drought indices (the Palmer Drought Severity Index (PDSI) and Crop Moisture Index (CMI)) are applied to the analysis and both indices have a negative relationship with temperature. The estimates indicate that one unit increase in PDSI (CMI) leads to 5.5% (13.9%), 4% (9%), and 5% (14%) increase in farm profits for all farms, crop farms, and livestock farms. This paper provides several contributions to the literature. First, the data set is very rare and unique national survey that provides an individual farm level observation. Therefore, it gives more detailed farm structure and financial information for the analysis compared to other studies. Second, drought indices (PDSI and CMI) are used for estimating the impact of weather on farm profits while temperature, precipitation, and growing degree-days are typical weather variables in literatures. |
| Keywords: | Climate change, Farm profits, Drought Index, the Palmer Drought Severity Index (PDSI), Crop Moisture Index (CMI), Environmental Economics and Policy, Q54, D24, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124801&r=env |
| By: | Gunter, Allison; Goemans, Chris; Pritchett, James; Thilmany McFadden, Dawn |
| Keywords: | Environmental Economics and Policy, Research Methods/ Statistical Methods, Risk and Uncertainty, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124930&r=env |
| By: | Udo Kreickemeier; Philipp M. Richter |
| Abstract: | This paper derives a new effect of trade liberalisation on the quality of the environment. We show that in the presence of heterogeneous firms the aggregate volume of emissions is influenced not only by the long-established scale effect, but also by a reallocation effect resulting from an increase in the relative size of more productive firms. We show how the relative importance of these effects, and hence the overall effect of trade liberalisation on the environment, is affected by the emission-intensity at the firm level: Aggregate emissions decrease when trade is liberalised if and only if firm-specific emission intensity decreases strongly with increasing firm productivity. |
| Keywords: | Trade and environment, monopolistic competition, heterogeneous firms, environmental effects |
| JEL: | F12 F18 Q56 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1214&r=env |
| By: | Fan, Qin; Klaiber, H. Allen; Fisher-Vanden, Karen |
| Abstract: | This paper employs a two-stage residential sorting model to examine climate change impacts on residential location choices in the US. The estimated coefficients are used to simulate population changes and US migration patterns across regions under hypothetical changes in climate. The main dataset used for estimation is the Integrated Public Use Microdata Sample (IPUMS), which provides demographic characteristics of approximately 2.4 million households located in 283 Metropolitan Statistical Areas (MSAs) of the US in the year 2000. Projected climate data (i.e. extreme temperatures) used for simulation are obtained from the North American Regional Climate Change Assessment Program (NARCCAP). In the estimation component, a two-stage random utility sorting model (RUM) is employed. The first-stage discrete choice model employs a multinomial logit specification to recover heterogeneous parameters associated with MSA specific variables, migration costs, along with the mean indirect utility of each MSA. In particular, the interaction terms of temperature extremes and individual-specific characteristics, such as one’s birth region, age and educational attainment, are used to recover valuations of temperature extremes for different classes of people with potentially different preferences. The second stage of this model decomposes the mean indirect utility obtained from the first stage into its MSA-specific attributes controlling for unobservables using region fixed effects. Migration costs are statistically significant. If migration costs are high, individuals are less likely to relocate for the sake of moderate changes in weather extremes. In the simulation component, the estimated coefficients are used to simulate population changes across regions in the US under hypothetical changes in extreme temperatures. We find that extreme temperature and extreme precipitation reduce utility, and people’s preferences for temperature extremes are heterogeneous. The climate of one’s place of birth and demographic characteristics such as age and educational attainment, are significant factors that lead to preference heterogeneity. In addition, we find that population share in the Southern region and California drop, while population share in Northeastern region increases under hypothetical changes in climate. |
| Keywords: | Climate Change, Extremes, Tiebout Sorting, Locational Equilibrium, Migration, Environmental Economics and Policy, Q51 and Q54, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124588&r=env |
| By: | Du, Xiaodong; Hennessy, David A.; Yu, Cindy L.; Miao, Ruiqing |
| Abstract: | This study seeks to provide a rigorous theoretical and empirical understanding of the effects of exogenous geographic and climate-related factors on the first three moments of crop yields. We hypothesize that exogenous geographic and climate factors that have beneficial effects on crop production, such as better soils, less overheating damage, more growing season precipitation and irrigation should make crop yield distributions less positively or more negatively skewed. We employ a large crop insurance dataset for corn, soybean, and wheat to find general support for the hypothesis. The novel empirical method optimally uses correlations between the first three moments and thus significantly improves estimation performance over existing methods. |
| Keywords: | cross-moment correlation, generalized method of moments, von Liebig production technology, Crop Production/Industries, Environmental Economics and Policy, Production Economics, Research and Development/Tech Change/Emerging Technologies, Q10, Q18, Q50., |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124748&r=env |
| By: | Kovacs, Kent F.; Polasky, Stephen; Keeler, Bonnie; Pennington, Derric; Nelson, Erik; Plantinga, Andrew J.; Taff, Steven J. |
| Abstract: | We evaluate how land use change and the value ecosystem services affect the decision to invest in public land acquisitions. Our application is for the state of Minnesota, and we consider the acquisitions by Department of Natural Resources over the last two decades. We calculate a return on investment (ROI) in conservation showing the increase in the value of ecosystem goods and services from public lands per dollar spent on acquisition. A spatially-explicit modeling tool, the Integrated Valuation of Ecosystem Services and Tradeoffs (InVEST), quantifies how changes in land use and land cover (LULC) influence the provision and value of a suite of ecosystem services: carbon sequestration, timber production, water quality, habitat quality, and outdoor recreation. The present value of the difference in the value of ecosystem services from landscapes with and without acquisitions in 1992 and for the econometrically modeled future landscapes in 2022 and 2052 is the return from the investment in the acquisitions. We find a limited number of acquisitions have a ROI above one. Also, we observe the estimated return in the acquisitions is much more influenced by the economic value of ecosystem services than the projected development threat to the acquisitions. |
| Keywords: | Environmental Economics and Policy, Land Economics/Use, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124660&r=env |
| By: | Sauer, Johannes; Walsh, John; Zilberman, David |
| Abstract: | This empirical study investigates the effects of different agri-environmental schemes on individual producer behaviour. We consider the effects on production intensity, performance and structure for a sample of UK cereal farms for the period 2000 to 2009 and use the policy examples of the Environmental Stewardship Scheme (ESS) and the Nitrate Vulnerable Zones (NVZ). The econometric methodology is based on a directional distance function framework as well as the application of propensity score analysis by the use of matching estimators. We find that both schemes are effectively influencing production behaviour at individual farm level. However, agri-environmental schemes show only very minor effects on the technical and allocative efficiency of farms, hence, we can conclude that farms enrolled in agri-environmental schemes are efficiently adjusting their production decisions given the constraints by the respective scheme. Farms affected by these schemes indeed tend to become less specialised and more diversified with respect to their production structure. A voluntary type agrienvironmental scheme seems to signficantly influence producer behaviour at a far higher scale than a non-voluntary agri-environmental scheme. The methodological novelty of this research lies in the use of a sound production theory based multi-output multi-input approach to disentangle measures for production performance and structure which are then used as indicators for the robust treatment effects’ analyses. |
| Keywords: | Agri-Environmental Policy, PES, Distance Function, Propensity Score Matching, Institutional and Behavioral Economics, Productivity Analysis, Research Methods/ Statistical Methods, Q15, Q18, Q57, C23, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124877&r=env |
| By: | Lee, Daegoon; Cho, Seong-Hoon; Roberts, Roland K.; Lambert, Dayton M. |
| Keywords: | Demand and Price Analysis, Environmental Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124596&r=env |
| By: | Fujii, Hidemichi; Managi, Shunsuke |
| Abstract: | This study analyzes toxic chemical substance management in three U.S. manufacturing sectors from 1991 to 2008. Decomposition analysis applying the logarithmic mean Divisia index is used to analyze changes in toxic chemical substance emissions by the following five factors: cleaner production, end-of-pipe treatment, transfer for further management, mixing of intermediate materials, and production scale. Based on our results, the chemical manufacturing sector reduced toxic chemical substance emissions mainly via end-of-pipe treatment. In the meantime, transfer for further management contributed to the reduction of toxic chemical substance emissions in the fabricated metal industry. This occurred because the environmental business market expanded in the 1990s, and the infrastructure for the recycling of metal and other wastes became more efficient. Cleaner production is the main contributor to toxic chemical reduction in the electrical product industry. This implies that the electrical product industry is successful in developing a more environmentally friendly product design and production process. |
| Keywords: | toxic substances; logarithmic mean Divisia index; cleaner production; end-of-pipe ;U.S. manufacturing sector |
| JEL: | Q52 Q53 Q57 Q58 |
| Date: | 2012–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:37550&r=env |
| By: | Lyman, Nate; Nalley, L. Lanier; Jagadish, S.V.K.; Dixon, Bruce; Siebenmorgen, Terry |
| Keywords: | Crop Production/Industries, Environmental Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124850&r=env |
| By: | Fatal, Shay; Kotsiri, Sofia; Tejeda, Hernan; Zhan, Congnan |
| Abstract: | The purpose of this study is to identify potential reductions of energy use2 and Green House Gases (GHG) emissions in the U.S. downstream (i.e., after production) supply chain of ethanol and gasoline fuels, by determining optimal transportation modes and routes. The analysis considers ethanol producers and fuel blending terminals, including consolidation and receiving hubs (Russell et al., 2009). Likewise transportation modes used for shipping ethanol are taken into account - rail, truck - in order to determine optimal delivery. Initial results support the need for construction of a new hub consolidation terminal or the expansion of the existing ones. This initial study leaves gasoline fuels, as well as shipments of ethanol via barge or vessel and of gasoline via pipeline, for a future extension. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124700&r=env |
| By: | Tian, Xiaohui |
| Abstract: | This paper seeks to understand the mechanisms underlying the policies creating incentives for carbon sequestration. The key difficulty in designing carbon policies for forests is to take into account the ephemeral nature of carbon sequestration and to accurately track the carbon flow entering and exiting forests. Among a number of existing payment systems, carbon subsidy-tax system (CST) and carbon rental system are the only two systems which both consider nonpermanence and accurately track the forest carbon flow. In this paper, we derive the optimal conditions for harvests under various carbon policies and simulate the effects in a single region, multi age class timber market model. We find that carbon policy will encourage afforestation if it create additional revenue but the CST and carbon rental system are more effective than the others in extending rotation ages. Another finding is that costs of carbon rental system are much higher than that of CST system although they are efficiently equivalent. |
| Keywords: | Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124919&r=env |
| By: | Roberto Roson (Department of Economics, University Of Venice Cà Foscari); Martina Sartori (University of Milan) |
| Abstract: | This paper presents and discusses some quantitative results obtained in assessing the economic impact of variations in tourism flows, induced by climate change, for some Mediterranean countries. Estimates by a regional climate model are used to build a Tourism Climate Index, which indicates the suitability of climate, in certain locations, for general outdoor activities. As climate change is expected to affect a number of variables like temperature, wind and precipitations, it will have consequences on the degree of attractiveness of touristic destinations. We estimate the macroeconomic consequences of changing tourism flows by means of a computable general equilibrium model. We found that more incoming tourists will increase income and welfare, but this phenomenon will also induce a change in the productive structure, with a decline in agriculture and manufacturing, partially compensated by an expansion of service industries. We found that, in most countries, the decline in agriculture entails a lower demand for water, counteracting the additional demand for water coming from tourists and bringing about a lower water consumption overall. |
| Keywords: | Climate Change, Computable General Equilibrium, Tourism, Water, Tourism Climate Index. |
| JEL: | C68 Q26 Q54 R13 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ven:wpaper:2012_05&r=env |
| By: | Mukherjee, Monobina; Schwabe, Kurt A. |
| Abstract: | Increasing aridity, more frequent and intense drought, and greater degrees of water scarcity create unique challenges for agriculture. In response to these challenges, which often manifest themselves in the form of lower and more variable surface water supplies as well as depleted and degraded ground water supplies, growers are apt to seek out opportunities to adapt. One option confronting growers to reduce their exposure to water scarcity and heightened uncertainty is to diversify. Indeed, having access to a portfolio of supplies is one way in which water and irrigation districts as well as individual growers are responding to the changing landscape of water resource availability. The objective of this paper is to evaluate the benefits to irrigated agriculture from having access to multiple water supply sources, i.e., a water portfolio. With farm-level information on approximately 2000 agricultural parcels across California, we use the hedonic property value method to investigate the extent growers’ benefit from having access to multiple sources of water (i.e., a water portfolio). Our results suggest that while lower quality waters, less reliable water, and less water all negatively impact agricultural land values, holding a water portfolio has a positive impact on land values through its role in mitigating the negative aspects of these factors and reducing the sensitivity of agriculture to climate-related factors. From a policy perspective, such results identify a valuable adaptation tool that water and irrigation districts may consider to help offset the negative impacts of climate change, drought, and population increases on water supply availability and reliability. |
| Keywords: | Non-market Valuation, Hedonics, Multiple Water Supply Sources, Water Districts, Groundwater, Spatial Econometrics, Agricultural and Food Policy, Environmental Economics and Policy, Q51, Q15, Q18, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124604&r=env |
| By: | Garces-Voisenat, Juan-Pedro; Mukherjee, Zinnia |
| Abstract: | In this paper we assess, through contingent valuation surveys, the willingness to pay (WTP) of the population for more environment-friendly sources of energy, in the context of the proposed construction of big hydroelectric dams in the Chilean Patagonia region. We use two different data samples constructed from the survey responses: (1) A sample of Chileans currently living in Chile. These are individuals who will be receiving the economic benefits that will stem from hydroelectric dams constructed in Patagonia. Their WTP reflects the “user value” of the resource to Chileans. (2) A sample of non-Chileans or Chileans living outside Chile. Their WTP reflects the “existence value” of the natural environment in Patagonia and the expected amount people are willing to pay to protect its pristine conditions. We identify the key determinants that affect the WTP estimates. We then compare this to the real costs of generating electricity with the different currently available technologies. The WTP estimate from sample 1 would provide the Chilean governments a numerical value of the contributions Chilean residents are willing to make to protect the natural environment in Patagonia. The estimate from sample 2 will indicate the contribution that the rest of the world is willing to make in order to preserve unique natural environments and wildlife in remote places of the globe. Overall, it should be a good guide for policymaking in energy matters for developing countries. |
| Keywords: | Energy; Environment; Sustainable Development; Chile; Patagonia |
| JEL: | O1 Q2 Q4 |
| Date: | 2012–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:39320&r=env |
| By: | Browne, Natalie; Kingwell, Ross S.; Behrendt, Ralph; Eckard, Richard |
| Abstract: | Dryland farming is commonplace in Australia so the profitability of dryland farms often depends on the amount and timing of rainfall. With drier weather conditions featuring in climate change projections for southern Australia, it is important to understand the relationships between rainfall, commodity prices and farm profitability. Using correlated farm commodity and input prices from the past nine years, farm profitability was calculated for a range of farm types in southwest Victoria under low, average and high rainfall scenarios. Fourteen representative farms were examined that included production of Merino fine wool, prime lamb, beef cattle, milk, wheat and canola. This paper compares and contrasts the spread of profitability of these farms against the backdrop of price variability and rainfall scenarios. Inferences about the resilience to climate and price volatility of the different farm types are made. The type of metric used to describe profitability is shown to importantly affect the nature of inferences to be drawn through the comparison of farms. |
| Keywords: | dryland farming, farm enterprises, climate change, price variability, Crop Production/Industries, Environmental Economics and Policy, Livestock Production/Industries, |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare12:124249&r=env |
| By: | Gowen, Rebecca; Rolfe, John; Donaghy, Peter |
| Abstract: | The Carbon Farming Initiative (CFI) and other carbon trading programs have been promoted as alternative sources of income for agricultural producers, particularly those on marginal land. This paper presents the results of a bioeconomic model developed to compare the relative returns from a beef enterprise against changing regrowth management practices to sequester additional carbon and sell carbon offsets. The model is constructed based on a 1000 hectare parcel of land in Central Queensland and is calculated for two landtypes; Brigalow and Eucalypt. Assuming zero transaction costs and a 20 year contract period, a carbon-cattle enterprise has higher returns that a cattle-only enterprise at relatively low carbon prices for both land types. However, results are highly dependent on the underlying assumptions regarding transaction costs, previous clearing methods and opportunity costs of cattle production. The impact of these variables and alternative policy settings were evaluated using an optimization model which identifies the optimal allocation between the two enterprises at different carbon prices. Whilst the model indicates that some beef producers could increase returns by supplying carbon offsets, the results are highly variable and do not account for the risk and uncertainty associated with long term contracts to supply a non-market good into a new market. |
| Keywords: | Carbon, bioeconomic modelling, grazing economics, Environmental Economics and Policy, Livestock Production/Industries, |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare12:124311&r=env |
| By: | Konar, Avishek; Roe, Brian E.; Irwin, Elena G. |
| Keywords: | Crop Production/Industries, Environmental Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124629&r=env |
| By: | Jonatan Pinkse (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM)); Ans Kolk (Amsterdam Business School - University of Amsterdam) |
| Abstract: | While calls are being made to deal with the linkages between climate change and sustainable development to arrive at an integrated policy, concrete steps in this direction have been very limited so far. One of the possible instruments through which both issues may be approached simultaneously is a multi-stakeholder partnership, a form of governance with the potential to address existing regulatory, participation, resource and learning gaps as it harnesses the strengths of private, public and nonprofit partners. There is some insight into partnerships for climate change, but largely limited to developed countries, and those in developing countries most often do not involve companies. To help fill this gap, this paper explores the role of multi-stakeholder partnerships in addressing climate change and sustainable development in developing-country settings. It elaborates on the governance function of partnerships, on actor involvement, the gaps addressed as well as synergies and trade-offs in the climate change-sustainable development nexus and how partnerships may help address them. As the number of such partnerships is still limited, we discuss seven illustrative partnerships, and draw conclusions as to further conceptualizations, and implications for research and practice. |
| Keywords: | Climate change; developing countries; sustainable development; partnerships; adaptation; mitigation |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:hal:gemptp:hal-00707337&r=env |
| By: | Alvarez, Sergio; Larkin, Sherry L.; Whitehead, John; Haab, Tim |
| Abstract: | Oil spills and other anthropogenic environmental disasters have economic consequences that transcend losses of business revenue and property damages. Such non-market losses include those accrued by recreational users, as well as by individuals who hold passive use value for the affected environmental resources. We use a series of random utility models to examine the substitution patterns and welfare losses experienced by recreational saltwater anglers in the Southeast U.S. due to the Deepwater Horizon oil spill. The use of a difference ratio to measure changes between pre- and post-spill preferences that allow us to discern substitution patterns in fishing season, catch, and site popularity. We also estimate monetary welfare measures for damages incurred by anglers, as well as the in-kind compensatory restoration that would be required to make anglers whole. |
| Keywords: | recreational fishing, MRIP, Deepwater Horizon, oil spill, random utility model, compensatory restoration, welfare measure, Environmental Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124779&r=env |
| By: | Chalak, Morteza; Ruijs, Arjan; Hemerik, Lia; van der Werf, Wopke; van Ierland, Ekko C. |
| Abstract: | Natural enemies such as herbivores that are introduced to reduce invasive plants can spill over into nature, threaten indigenous species and impose significant costs. We develop a bioeconomic model to analyse the optimal control management strategy of an introduced herbivore that has spilled over from a managed system to a natural area. Cost-effective control strategies are analysed that reduce the spillover effects of herbivores on endangered plants species to reduce the risk of extinction and increase benefits obtained from the ecosystem. We consider two competing indigenous plant species as the representatives of the plant community. Only one of these species is consumed by introduced herbivore. We show that the optimal level of controlling herbivores is relatively high in the following circumstances: (a) the herbivore has a high attack rate on the non-target host, (b) the herbivore has a relatively low attack rate on the target species (i.e. the weed), (c) the costs of controlling herbivore are low, (d) the non-target species has a low density (e) the non-target host has a higher biodiversity value than does its competitor. Point (b) is particularly interesting in the view of previous literature that reaches opposite conclusions. |
| Keywords: | Economics, Biological agent, Externality, Spillover, Control, Environmental Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124374&r=env |
| By: | Mieno, Taro; Brozovic, Nicholas |
| Abstract: | In this study, we empirically examine the effectiveness of regulatory actions on wastewater treatment plants in Illinois with careful attention to endogeneity issues that might have caused biased estimates in previous studies. We show that Pooled OLS and Fixed Effect models, which are the dominant estimation strategies in the literature, underestimate the effect of regulatory activities, giving rise to misleading conclusions on the effectiveness of regulatory activities. For example, in this particular application, Pooled OLS and Fixed Effects suggest that non-monetary sanctions "increase" emission levels and monetary sanctions have no deterrence effect. On the contrary, GMM suggests that non-monetary sanctions have no deterrence effect whereas monetary sanctions do have a deterrence effect. This suggests that reconsideration of the deterrence effect of regulatory activities may be worthwhile in other similar applications. |
| Keywords: | Clean Water Act, wastewater treatment plant, environmental regulation, deterrence effect, Pooled OLS, Fixed Effects, GMM, Environmental Economics and Policy, Research Methods/ Statistical Methods, |
| Date: | 2012–06–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124612&r=env |
| By: | Schoengold, Karina; Ding, Ya; Headlee, Russell |
| Abstract: | The paper estimates the impacts of risk reducing government pro- grams on the use of conservation practices in agriculture. Speci- cally, conservation tillage or no-till agriculture can be used to reduce risk from weather shocks while subsidized crop insurance and disaster payments also reduce risk from weather shocks through nancial assis- tance. The paper examines the extent to which conservation practices (i.e., private insurance) and government programs (i.e., public insur- ance) are substitutes for each other. The paper uses data on con- servation practices from the Conservation Tillage Information Center. Results are estimated using instrumental variables and spatial panel data techniques. The economic model shows that government support programs and self management of risk through improved production practices are substitutes. The empirical analysis shows that produc- ers with riskier climate conditions are more likely to use conservation tillage practices but that recent receipts of ad-hoc disaster payments and insurance indemnity payments reduce those probabilities. |
| Keywords: | Environmental Economics and Policy, Farm Management, Land Economics/Use, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124957&r=env |
| By: | Banerjee, Prasenjit; Shogren, Jason F. |
| Abstract: | This paper investigates the interaction between consumers and producers in designing incentive mechanism for climate protection. Firms have material interests in building a moral reputation for those consumers who prefer buying from socially responsible firms. We examine optimal monetary transfer by addressing crowding out effect due to reputation. We find green reputation leads to overprotection and brown firms buy reputation if consumers have strong preference on green products. When consumers care less about firms’ reputation, firms do not have any incentive to buy reputation. |
| Keywords: | Asymmetric Information, Climate change, Crowding out, Mechanism Design, Reputation., Consumer/Household Economics, D02, D03, Q15, Q34, Q57, |
| Date: | 2012–06–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124920&r=env |
| By: | Rabotyagov, Sergey S.; Valcu, Adriana M.; Campbell, Todd D.; Jha, Manoj K.; Gassman, Philip W.; Kling, Catherine L. |
| Keywords: | Agricultural and Food Policy, Environmental Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124656&r=env |
| By: | Robinson, Elizabeth J.Z.; Albers, Heidi J.; Lokina, Razack; Ngeleza, Guyslain |
| Abstract: | Typically both local villagers (“insiders”) and non-locals (“outsiders”) extract products from protected forests even though the activities are illegal. Our paper suggests that, depending on the relative ecological damage caused by each group, budget-constrained forest managers may be able to reduce total forest degradation by legalizing “insider” extraction in return for local villagers involvement in enforcement activities. We illustrate this through the development of a game-theoretic model that considers explicitly the interaction between the forest manager who can combine a limited enforcement budget with legalization of insider resource extraction and livelihood projects |
| Keywords: | participatory forest management, local enforcement, Tanzania, charcoal production, non-timber forest products, bee keeping |
| Date: | 2012–06–06 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-12-07-efd&r=env |
| By: | Zezza, Annalisa |
| Abstract: | This paper tries to identify under which conditions voluntary certification could be an answer to the governance of sustainability at global level. The study addresses the case of biofuel sustainability certification in Brazil and the role of the EU Directive on biofuels. The case study has permitted to identify and analyze some of these factors as the degree of dependence from foreign market, the policy environment, the structure of the supply chain, the benefits and costs associated to certification as well as some unintended consequences. The research has been conducted through a case study in the state of Sao Paolo (Brazil). |
| Keywords: | Biofuel, certification, Brazil, EU, sustainability, Environmental Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aieacp:124112&r=env |
| By: | Ralf Martin; Mirabelle Muûls; Ulrich J. Wagner; Laure B. de Preux |
| Abstract: | When industry compensation is offered to prevent relocation of regulated firms, efficiency requires that payments be distributed across firms so as to equalize marginal relocation probabilities, weighted by the damage caused by relocation. We formalize this fundamental economic logic and apply it to analyze industry compensation rules proposed under the EU Emissions Trading Scheme, which allocate permits for free to carbon and trade intensive industries. We estimate that this practice will result in overcompensation in the order of €6.7 billion every year. Efficient allocation would reduce the aggregate risk of job loss by two thirds without increasing aggregate compensation. |
| Keywords: | Industry compensation, industrial relocation, emissions trading, permit allocation, EU ETS, firm data |
| JEL: | H23 H25 Q52 Q54 F18 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1150&r=env |
| By: | Mugera, Amin W.; Zereyesus, Yacob A. |
| Keywords: | Farm Management, Production Economics, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124695&r=env |
| By: | Jonatan Pinkse (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM)); Ans Kolk (Amsterdam Business School - University of Amsterdam) |
| Abstract: | This paper explores how climate change affects MNEs, focusing on the challenges they face in overcoming liabilities and filling institutional voids related to the issue. Climate change is characterized by institutional failures because there is neither an enforceable global agreement nor a market morality. Climate change is also a distinctive 'international business' issue as its institutional failures materialize differently in different countries. As governments are still highly involved, MNEs need to carefully consider their strategies to cope with nonmarket forces, including their embeddedness in multiple institutional settings. Using some illustrative examples of MNE responses to climate-related components in stimulus packages, we explore MNEs' balancing act concerning their institutional embeddedness (or lack thereof) in home, host and supranational contexts as input for further research on the dynamics of MNE activities in relation to climate change |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:hal:gemptp:hal-00707360&r=env |
| By: | Antoine Dechezleprêtre (Grantham Research Institute on Climate Change and the Environment, London School of Economics and Political Science); Richard Perkins (Grantham Research Institute on Climate Change and the Environment, London School of Economics and Political Science and Department of Geography and Environment, London School of Economics and Political Science); Eric Neumayer (Grantham Research Institute on Climate Change and the Environment, London School of Economics and Political Science and Department of Geography and Environment, London School of Economics and Political Science) |
| Abstract: | This article examines the impact of environmental regulation within countries as well as regulatory distance between countries on international technology transfer. We employ a recently-assembled dataset of automobile emission standards and corresponding data on non-resident patent filing of automotive environmentally sound technologies (ESTs) in 49 countries between 1992 and 2007. Our analysis shows that an important factor shaping transfers is relative regulatory distance in that countries are more likely to receive newly-innovated technologies from source countries whose regulatory standards are “closer” to their own. Absolute stringency matters as well, consistent with conventional wisdom, although raising domestic environmental standards as such only leads to higher inflows of ESTs in developing countries. Novel to the literature, we show that regulatory standards in the third markets of a country's trading partners also influence transfers: countries receive more ESTs from a specific source country where they export more to markets whose regulatory standards are similar to those of the source country of the transferred technologies. As concerns both domestic regulation and regulation in a country’s major export markets, it is therefore regulatory distance that matters most rather than absolute regulatory levels. |
| Keywords: | Pollution Control Technologies, Environmental Regulation, International Technology Diffusion |
| JEL: | O33 Q53 Q55 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2012.33&r=env |
| By: | Torres, Marcelo de Oliveira; Felthoven, Ronald G. |
| Abstract: | Many fisheries worldwide have exhibited marked decreases in profitability and fish stocks during the last few decades as a result of overfishing. However, more conservative, science- and incentive-based management approaches have been practiced in the US federally managed fisheries off Alaska since the mid 1990’s. The Bering Sea pollock fishery is one such fishery and remains one of the world’s largest in both value and volume of landings. In 1998, with the implementation of the American Fisheries Act (AFA) this fishery was converted from a limited access fishery to a rationalized fishery in which fishing quota were allocated to cooperatives who could transfer quotas, facilitate fleet consolidation, and maximize efficiency. The changes in efficiency and productivity growth arising from the change in management regime have been the subject of several studies, a few of which have focused on the large vessels that both catch and process fish onboard (catcher-processors). In this study we modify existing approaches to account for the unique decision making process characterizing catcher-processor’s production technologies. In particular, we focus on sequential decisions regarding what products to produce and the factors that influence productivity once those decisions are made using a multiproduct revenue function. The estimation procedure is based on a latent variable econometric model and departs from and advances previous studies since it deals with the mixed distribution nature of the data. Our productivity growth estimates are consistent with increasing productivity growth since rationalization of the fishery, even in light of large decreases in the pollock stock. These findings suggest that rationalizing fishery incentives can help foster improvements in economic productivity even during periods of diminished biological productivity. |
| Keywords: | Fisheries, Revenue function, Productivity, Environmental Factors, Environmental Economics and Policy, Productivity Analysis, Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124851&r=env |
| By: | Longhitano, Davide |
| Abstract: | The main objective of this communication is to review the theoretical ecosystem and agroecosystem services assessment’s methods and to propose a thermoeconomic approach. The logic of thermoeconomic approach consists in analysing the use of natural resources during the production process, interpreting it as a thermodynamic conversion in order to assess the overall specific energy consumption of the systemic components arriving at estimates of fluxes and energy costs. This study analyses comparatively the main thermoeconomic-based approaches to verify the feasibility of the "energy value" as an appraisal criterion of agroecosystem services. In particularly among the reviewed approaches the Emergy synthesis seems the most appropriate tool to be empirically applied on the study of agricultural systems even at the farm level, and this in particular taking into account the new architecture of the database of the Italian FADN, although they are complementary tools to traditional methods of decision analysis. |
| Keywords: | thermoeconomic approach, agroecosystem services, exergy, emergy, environmental accounting, Resource /Energy Economics and Policy, Q56, Q57, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aieacp:124123&r=env |
| By: | Taheripour, Farzad; Tyner, Wallace E. |
| Keywords: | Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124737&r=env |
| By: | Chakravorty, Ujjayant (University of Alberta, Department of Economics); Hubert, Marie-Helene (Economics and Management Research Centre); Nostbakken, Linda (University of Alberta School of Business) |
| Abstract: | More than 40% of US grain is now used to produce biofuels, which are used as substitutes for gasoline in transportation. Biofuels have been blamed universally for recent increases in world food prices. Many studies have shown that these energy mandates in the US and EU may have a large (30-60%) impact on food prices. In this paper we show that demand-side effects - in the form of population growth and income-driven preferences for meat and dairy products rather than cereals - may play as much of a role in raising food prices as biofuel policy. By specifying a Ricardian model with differential land quality, we show that a significant amount of new land will be converted to farming which is likely to cause a modest increase in food prices. However, biofuels may increase aggregate world carbon emissions, due to leakage from lower oil prices and conversion of pasture and forest land for farming. |
| Keywords: | clean energy; food demand; land quality; renewable fuel standards; transportation |
| JEL: | Q24 Q32 Q42 |
| Date: | 2012–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:albaec:2012_011&r=env |
| By: | Enrica De Cian (Fondazione Eni Enrico Mattei (FEEM), and Centro Euro-mediterraneo per i Cambiamenti Climatici (CMCC)); Ramiro Parrado (Fondazione Eni Enrico Mattei (FEEM), Centro Euro-mediterraneo per i Cambiamenti Climatici (CMCC) and Ca’ Foscari University of Venice) |
| Abstract: | This paper uses a dynamic CGE model to assess the intertemporal and spatial dimension of technology spillovers embodied in international trade within a climate and trade policy framework. Three are the main contributions of the study. First, to include endogenous factor-biased technical change based on trade flows in a CGE model, particularly for energy and capital. Second, to analyse the implications of specific spillovers embodied in trade of capital goods (machinery and equipment), and third, to highlight the implications of accounting for indirect effects induced by spillovers. We find that explicitly modelling trade spillovers reveals significant effects thanks to the transmission mechanisms underlying imports of capital commodities. We then assess the net contribution of modelling trade spillovers within three policy scenarios. The aggregated net effects of spillovers are rather small confirming findings from previous studies. However, there are important international and intersectoral redistribution effects due to technology transfers represented as embodied spillovers. |
| Keywords: | Computable General Equilibrium Models, Climate Change, Economic Growth, Technological Spillovers |
| JEL: | C68 E27 O12 Q54 Q56 O33 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2012.27&r=env |
| By: | Lamsal, Madhur; Mullen, Jeffrey D. |
| Keywords: | Productivity Analysis, Public Economics, Research and Development/Tech Change/Emerging Technologies, Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124821&r=env |
| By: | Sassi, Maria; Cardaci, Alberto |
| Abstract: | The paper aims at analysing the impact of the likely change in rainfall on food availability and access to food in Sudan. The empirical investigation is based on an integrated approach consisting of a stochastic method and CGE model. The former provides the likely changes in sorghum, millet and wheat productivity and their probability of occurrence according to rainfall predictions based on historical data. These results are at the basis of the shocks simulated in a standard CGE model augmented with a stochastic component. Achievements underline the negative impact on the two dimensions of food security taken into consideration, mainly due to a reduction in cereal supply, a marked cereal inflation pressure and income contraction; the grater negative effect on the poorest households; and a deterioration of the economic performance of the country. In this context, the paper stresses a strong interconnection among climate change, poverty and food insecurity and thus the need for an integrated policy-making approach. |
| Keywords: | climate change, food security, stochastic approach, cge, sudan, Environmental Economics and Policy, C68, Q18, Q54, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aieacp:124110&r=env |
| By: | Balvers, Ronald; Du, Ding; Zhao, Xiaobing |
| Abstract: | Financial market information can provide an objective assessment of losses anticipated from global warming. In a Merton-type asset pricing model, with asset prices affected by perceived changes in investment opportunities due to global warming, the risk premium is significantly negative and growing over time, loadings for most assets are negative, and asset portfolios in more vulnerable industries have stronger negative loadings on the global warming factor. Average increases in required returns attributed to global warming are 0.11 percent, implying a present value loss of 4.18 percent of wealth. These costs complement previous estimates of the cost of global warming. |
| Keywords: | Asset Pricing, Global Warming, Cost of Capital, Tracking Portfolios, Environmental Economics and Policy, G12, Q54, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124676&r=env |
| By: | Raouf Boucekkine; Aude Pommeret; Fabien Prieur |
| Abstract: | We consider a general control problem with two types of optimal regime switch. The first one concerns technological and/or institutional regimes indexed by a finite number of discrete parameter values, and the second features ecological-like regimes relying on given threshold values for given state variables. We propose a general optimal control framework allowing to derive the first-order optimality conditions and in particular to characterize the geometry of the shadow prices at optimal switching times (if any). We apply this new optimal control material to address the problem of the optimal management of natural resources under ecological irreversibility, and with the possibility to switch to a backstop technology. |
| Keywords: | multi-stage optimal control; threshold effects; irreversibility; non-renewable resources; backstop technology |
| JEL: | Q30 Q53 C61 O33 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:lau:crdeep:12.02&r=env |
| By: | Liwayway Adkins; Richard Garbaccio; Mun Ho; Eric Moore; Richard Morgenstern |
| Abstract: | The effects of a carbon price on U.S. industries are likely to change over time as firms and customers gradually adjust to new prices. The effects will also depend on offsetting policies to compensate losers and the number of countries implementing comparable policies. We examine the effects of a $15/ton CO2 price, including Waxman-Markey-type allocations, on a disaggregated set of industries, over four time horizons — the very-short-, short-, medium-, and long-runs — distinguished by the ability of firms to raise output prices, change their input mix, and reallocate capital. We find that if firms cannot pass on higher costs, the loss in profits in a number of energy-intensive trade-exposed (EITE) industries will be substantial. When output prices can rise to reflect higher energy costs, the reduction in profits is substantially smaller, and the offsetting policies in H.R. 2454 reduce output and profit losses even more. Over the medium- and long-terms, however, when more adjustments occur, the impact on output is more varied due to general equilibrium effects. We find that the use of the output-based rebates and other allocations in H.R. 2454 can substantially offset the output losses over all four time frames considered. Trade or "competitiveness" effects from the carbon price explain a significant portion of the fall in output for EITE sectors, but in absolute terms the trade impacts are modest and can be reduced or even reversed with the subsidies. The subsidies are less effective, however, in preventing emissions leakage to countries not adopting carbon policies. Roughly half of U.S. trade-related leakage to non-policy countries can be explained by changes in the volume of trade and the other half by higher emissions intensities induced by lower world fuel prices. |
| Keywords: | carbon price, competitiveness, input-output analysis, computable general equilibrium models, output-based allocations, carbon leakage |
| JEL: | D21 D57 D58 F14 H23 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:nev:wpaper:wp201203&r=env |
| By: | Akaichi, Faical; Nalley, Lanier; Nayga, Rodolfo M., Jr. |
| Keywords: | Demand and Price Analysis, Environmental Economics and Policy, Food Consumption/Nutrition/Food Safety, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124781&r=env |
| By: | Louis Dupuy (Larefi) |
| Abstract: | This paper aims at reviewing the literature on international trade and sustainability. In the neoclassical sense sustainability is interpreted as the imperative to maintain constant consump- tion over time. The literature provides several indicators to assess sustainability empirically. Theoretical and empirical studies alike usually consider the world either as an integrated econ- omy where international is no di erent from intra-national trade and can be neglected or a juxtaposition of closed national economies. Some useful insights can be drawn from the liter- ature on trade and the environment to nally understand the impact of international trade on all the dimensions of sustainability. |
| Keywords: | Sustainability, International Trade, Environmental Accounting |
| JEL: | F11 F18 Q01 Q56 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:laf:wpaper:201201&r=env |
| By: | Charles Figuières; Marc Willinger |
| Abstract: | This paper offers a new mechanism in order to Nash-implement a Pareto optimal level of ambient pollution. As usual in the literature on non point source pollution, the proposed scheme is not conditional on individual emissions, since they are not observable; rather it is conditional on aggregate emission. But the novelty here is that we do not assume the 10 regulator knows the agents' preferences, with which he could identify the target level of aggregate emission. Our mechanism dispenses with this information, yet it achieves Pareto optimality provided that the number of agents involved in the problem is known. |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:lam:wpaper:12-17&r=env |
| By: | Cooper, Kristen; Gorter, Harry de; Drabik, Dusan |
| Abstract: | This paper presents a general equilibrium model of the U.S. economy and estimates the optimal corn ethanol consumption subsidy and blend mandate in two different fiscal environments: a labor market with a pre-existing tax and a fixed governmental revenue requirement, and an undistorted labor market. We first derive analytical formulas for the optimal policies in a theoretical version of the model and show how the first-order welfare effect of the pre-existing labor tax changes the optimal policies. We then build a numerical version of the model and calibrate it to the U.S. economy in 2009 when both a binding ethanol blend mandate and ethanol consumption subsidy were in place. We simulate various policy scenarios in the numerical model, and we find that the optimal ethanol tax credit or blend mandate is zero if the fuel tax is held fixed and the marginal external cost of emissions is about $25/tC. Through several related approaches, the paper shows how fiscal interaction effects raise the cost of the ethanol policies and make it less likely, for any given parameterization, that a positive ethanol policy will be optimal. |
| Keywords: | biofuel policies, ethanol mandate, ethanol subsidy, gasoline tax, greenhouse gas emissions, renewable fuel standard, second best., Research Methods/ Statistical Methods, Resource /Energy Economics and Policy, H2, Q4, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124763&r=env |
| By: | Smith, Vincent H.; Marenya, Paswel Phiri; Nkonya, Ephraim M.; Droppelmann, Klaus |
| Keywords: | choice elicitation, learning games, Malawi, Environmental Economics and Policy, International Development, Q18, Q24, C93, |
| Date: | 2012–06–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124635&r=env |
| By: | Martin D. Heintzelman; Patrick J. Walsh; Dustin J. Grzeskowiak |
| Abstract: | To guard against urban sprawl, many communities in the United States have begun enacting policies to preserve open space, often through local voter referenda. New Jersey sponsors such municipal action through the Green Acres Program by providing funding and low interest loans to towns that choose, through a referendum, to increase property taxes and spend the money raised on open space preservation for the purposes of conservation and/or recreation. Understanding which factors contribute to the appearance and success of these measures is important for policy makers and conservation advocates, not only in New Jersey, but across the United States. Although previous literature has examined this issue, this is the first study to account for spatial dependence/spatial autocorrelation and to explore dynamic issues through survival analysis. The traditional two stage model from the literature is extended by incorporating a Bayesian spatial probit for the first stage and a maximum-likelihood spatial error model in the second stage. A Cox – proportional hazard model is used to examine the timing of referenda appearance. Spatial dependence is found in the second stage of the analysis, indicating future studies should account for its influence. There is not strong evidence for spatial dependence or correlation in the first stage. The survival model is found to be a useful complement to the traditional probit analysis of the first stage. |
| Keywords: | environmental referenda, open space, survival model, Spatial econometrics, bayesian probit |
| JEL: | C11 C21 Q50 Q57 Q58 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:nev:wpaper:wp201202&r=env |
| By: | Boussios, David; Barkley, Andrew P. |
| Abstract: | This research identifies and quantifies the impact of biophysical and economic variables on Kansas grain supply for the period 1977- 2007. This research estimates total supply response by aggregating yield and acreage responses. Previous methods have effectively analyzed the response of crop supply through either acreage or yield responses. However, the method proposed in this research incorporates both yield and acreage response to various production variables through recursive modeling. The results include the negative impact of acreage expansion on aggregate yields and thus the impact on total supply. The results also show that previous methods underestimate supply response elasticities by as much as 97%. Furthermore, this research estimates supply response to estimated changes in climate temperatures and precipitation. Results show the importance of incorporating both responses in estimating supply as acreage and yields are constantly changing, sometimes in contradictory ways. This research extends previous research on producer price expectations. The results show strong statistical significance of both futures and basis prices affecting total supply, which indicates both prices are instrumental in estimating expectations. Understanding these results is important given the volatility in current agricultural commodity markets. |
| Keywords: | Yield, Acreage, Supply, Grain, Extensive Margin, Producer Expectations, Climate, Weather, Agribusiness, Agricultural and Food Policy, Crop Production/Industries, Environmental Economics and Policy, Land Economics/Use, Production Economics, Resource /Energy Economics and Policy, |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124385&r=env |
| By: | Passeri, N.; Blasi, E.; Franco, Silvio |
| Abstract: | Molti studi analizzano il rapporto tra produzione agricola ed emissioni di gas serrra. Nella quantificazione dell’impatto ambientale del settore aagroalimentare, in termini di gas serra, si sta affermando la metodologia del Life Cycle Assesment (LCA) normata dalle ISO 14040 e 14044. Tra i diversi i risultati, l’analisi LCA determina l’Impronta Carbonica (C Carbon Footprint), derivante dagli utilizzi di materia ed energia nelle fasi di produzione, trasformazione, distribuzione, consumo e smaltimento di un prodootto agroalimentare. La metodologia LCA considera l’attività agricola come un processo industriale e, concentrandosi sulla determinazione delle emissioni per i singoli fattori immessi nei processi produtt tivi e non considerando l’intrinseca capacità delle strutture agro-ecosistemiche di assorbire CO2. Sarebbe opportuno tenere in consiiderazione l’enorme varietà di comportamento dei sistemi suolo-pianta determinata dalla molteplicità delle categorie colturali e pedoclimatiche, dall’aleatorietà dei diversi fattori che influenzano l’attività fotosintetica e dalle diverse modalità di gestione tecnica dei processi. A questo proposito la metodologia del Bilancio Ecologico (Ecological Balance), ideato per stimare l’impatto ambientale - e quindi la sostenibilità - dei processi di produzione e consumo che insistono su un territorio, sembra prestarsi, con le dovute modifiche, all’analisi delle performance ambientali di un sistema di produzione agricolo. Il presente contributo propone un primo test di applicazione di tale approccio alla valutazione del bilancio ambientale delle coltivazioni agricole, illustrando la metodologia di valutazione e una prima applicazione empirica alla coltivazione del frumento duro. |
| Keywords: | carbon footprint, bilancio ecologico, produzione agricola, impronta ecologica, impatto ambientale., Environmental Economics and Policy, Q56, Q57, Q18, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aieacp:124124&r=env |
| By: | Qureshi, Muhammad Ejaz; Ahmad, Mobin-ud-Din; Whitten, Stuart M.; Kirby, Mac |
| Abstract: | In the last decade, the Murray-Darling Basin (MDB), Australia faced a severe drought which affected its agriculture production. Sustainable diversion limits as proposed in the Australian Government’s basin plan together with climate change is expected to impact on future agriculture production and development in the MDB. We developed a biophysical-economic mathematical model calibrated against the observed multi-period land use data utilising the positive mathematical programming (PMP) approach to evaluate the impacts on agricultural production activities of a range of climate events and policy options. This is an extension of our previous work where the model was calibrated against a single year and focus was on the southern MDB only. The multi-period calibrated model has strong predictive capacity as it matches simulated irrigated area, water use and gross value of irrigated agricultural product (GVIAP) well with the observed irrigated land, water use and GVIAP for all the crops in all the regions of the MDB across the highly variable climatic conditions from 2005 to 2009. The approach will be useful in assessing economic impacts of climate change on irrigation, farmers’ adaptation options and/or water policies including water markets and irrigation efficiency improvement. |
| Keywords: | Integrated hydrology and economic model, multi-period calibration, climate change, drought, agriculture, positive mathematical programming, Resource /Energy Economics and Policy, |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare12:124418&r=env |
| By: | James Roumasset (Department of Economics, University of Hawaii at Manoa); Christopher Wada (Department of Economics, University of Hawaii at Manoa) |
| Abstract: | We provide a synthesis of the economics of groundwater with a focus on optimal management and the Pearce equation for renewable resources. General management principles developed through the solution of a single aquifer optimization problem are extended to the management of multiple resources including additional groundwater aquifers, surface water, recycled wastewater, and upland watersheds. Given an abundant (albeit expensive) substitute, optimal management is sustainable in the long run. We also discuss the open-access equilibrium for groundwater and the conditions under which the Gisser-Sanchez effect (the result that the present value generated by competitive resource extraction and that generated by optimal control of groundwater are nearly identical) is valid. From the models and examples discussed, one can conclude that optimization across any number of dimensions (e.g. space, time, quality) is driven by a system shadow price, and augmenting groundwater with available alternatives lessens scarcity and increases welfare if timed appropriately. Other rules-of-thumb including historical cost recovery, independent management of separate aquifers, and maximum sustainable yield are inefficient and may involve large welfare losses. |
| Keywords: | Groundwater, renewable resources, dynamic optimization, sustainable yield, Pearce equation, marginal user cost, conjunctive use, water institutions, Gisser-Sanchez effect, governance |
| JEL: | Q20 Q25 |
| Date: | 2012–06–13 |
| URL: | http://d.repec.org/n?u=RePEc:hai:wpaper:201211&r=env |
| By: | Tim Swanson (Andre Hoffmann Chair of Environmental Economics, Graduate Institute- Geneva, and Director of the Centre for International Environmental Studies); Ben Groom (School for Oriental and Asian Studies, University of London) |
| Abstract: | We distinguish between local problems of biodiversity loss and global ones, where international cooperation is required. Global biodiversity regulation involves choosing the optimal stopping rule regarding global land conversions, in order to ensure that some areas of unconverted natural reserves remain to support the production sector that exists on converted lands. The basic difficulty with implementing a solution to this global problem lies in the asymmetry in endowments between those states that have previously converted, and those that have not. We demonstrate that the fundamental problem of global biodiversity regulation is similar to the bargaining problem analysed by Nash, Rubinstein and others. There are benefits from global land conversion, and there must be agreement on their distribution before the conversion process can be halted. Since the institutions addressing global biodiversity problems are either highly ineffectual (benefit sharing agreements, prior informed consent clauses) or very extreme (incremental cost contracts), the biodiversity bargaining problem remains unresolved. For this reason we anticipate that suboptimal conversions will continue to occur, as a way of protesting the ineffective and unfair approaches employed in addressing this problem to date. |
| Keywords: | Global Biodiversity, International Environmental Policy, Nash Bargaining, Rational Threats |
| JEL: | Q24 Q28 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2012.31&r=env |
| By: | Paul Collier; Anthony J Venables |
| Abstract: | Africa is well endowed with potential for hydro and solar power, but its other endowments – shortages of capital, skills, and governance capacity – make most of the green options relatively expensive, while its abundance of hydro-carbons makes fossil fuels relatively cheap. Current power shortages make expansion of power capacity a priority. Africa’s endowments, and the consequent scarcities and relative prices, are not immutable and can be changed to bring opportunity costs in Africa closer to those in the rest of the world. The international community can support by increasing Africa’s supply of the scarce factors of capital, skills, and governance. |
| Keywords: | Africa, climate change, energy, renewable, leapfrog, latecomer |
| JEL: | Q54 Q5 Q40 O55 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:089&r=env |
| By: | DiSegni, Dafna; Huly, Moshe; Akron, Sagi |
| Abstract: | In this study we statistically assess the relationship between corporate characteristics, environmental contribution, and financial performance. To this end, we compare the financial performance of all US corporations that have composed the Dow Jones Sustainability Indexs (DJSI), being the most proactive companies in providing services and goods while maintaining ethical responsibility and environmental sustainability. Performance is compared to mean performance of the related industry, sector, and the market portfolio. Our analysis suggest that firms who are proactive supporting Social Responsibility and Environmental Sustainability (SRER corporations) are characterized by significantly higher profit measures than the industry and the sector, though not higher than the entire market; have lower short term liquidity than that of the industry and the related sector, and surprisingly their long term leverage is significantly higher. High SRER corporations are characterized by significantly higher managerial efficiency ratios than the respective industry and the sector. Interestingly, the per-worker ratios are significantly lower than all the benchmarks. These results illustrate the strong relation between social and environmental sustainability and the long term business plan. Results extend existing literature that has restricted attention to Corporate Social Responsibility and financial performance, but have left aside sustainability. |
| Keywords: | Corporate Social Responsibility, Financial indicators, Sustainability, Environmental Economics and Policy, Financial Economics, Institutional and Behavioral Economics, G30, Q01, Q56, |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124636&r=env |
| By: | Dennis Guignet |
| Abstract: | Hedonic property value models are widely used, but are susceptible to omitted variable bias and potentially invalid conjectures regarding the assumed measure of environmental quality. This paper focuses on an application where both are of particular concern: leaking underground storage tanks. I estimate a hedonic model using quasi-experimental and spatial econometric techniques. Similar to previous studies, I examine how house prices vary with distance to the disamenity. This approach yields little evidence that prices are adversely impacted. However, to better measure risks, I utilize home-specific data on correspondence from environmental regulators, and find a 9-12% depreciation when households are well-informed. |
| Keywords: | hedonic analysis, housing prices, leaking underground storage tanks, LUST, contaminated sites, groundwater contamination, remediation benefits |
| JEL: | D62 I18 Q51 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:nev:wpaper:wp201201&r=env |
| By: | Stafford, Tess |
| Abstract: | This paper analyzes the bias associated with ignoring the multi-species aspect of labor supply decisions in spatially explicit bioeconomic fishery models. Recent advancements have been made to simultaneously model the biology of a marine species and the strategic behavior of harvesters over both time and space in order to more accurately predict the effect of regulatory policies on harvester effort and resource population. These models assume a nested choice structure in which the harvester first faces a dichotomous decision between fishing for the target species or not on a given day and then chooses a location to fish conditional on participation. This structure implicitly groups all non-target species options together in the first nest forcing participation-specific coefficients to be the same for all outside options, including fishing for an alternative species and staying home, two very different choices. Using a complete 15-year panel of all fishing trips made by fishermen possessing a Florida spiny lobster license, including non-lobster trips, I show that the simplifying assumption of a dichotomous choice structure in the first nest is not innocuous and that the participation probabilities can change substantially with the addition of another species as an outside alternative. |
| Keywords: | Multi-species fisheries, labor supply, fisheries management, Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124367&r=env |
| By: | Ando, Amy Whritenour; Mallory, Mindy L. |
| Keywords: | Land Economics/Use, Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:125073&r=env |
| By: | Georges, Jessica |
| Abstract: | As petroleum supplies remain in constant limbo, alternative sources are needed to meet energy demands. Biofuels have the potential to mitigate environmental impact, improve balance of payments though foreign exchange savings while providing countries with greater energy security. Considering that biofuels are expected to gain a larger share of the automotive fuel market, biofuels are pertinent to both developed and developing countries. It is necessary to conduct an economic analysis on a biofuel mandate since other countries are contemplating mandates and are moving towards a biofuel economy. This paper finds that coconut farm gate prices are higher but coconut workers’ wages decreased and farmers experienced an increase in volatility in their farm gate price during the time the Biofuel Act was in effect. |
| Keywords: | International Relations/Trade, Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124952&r=env |
| By: | Reeling, C. J.; Weir, A.E.; Swinton, Scott M.; Hayes, R.C. |
| Abstract: | In recent decades, public research into agricultural technology development has shifted is primary focus from farm profitability to environmental stewardship. While the orientation of technologies coming from the public sector has changed, the factors motivating adoption by farm businesses remain focused on profitability. This paper develops a comparative breakeven net return threshold for new conservation technologies that requires net returns to the farm enterprise after adoption of the new technology to at least equal their net returns before adoption. The framework is applied to the case study of perennial wheat, a wheat-grass hybrid that can survive and yield grain for multiple seasons. Its perenniality generates environmental benefits over annual wheat via improved soil conservation, water quality, and greenhouse gas sequestration. The framework is illustrated using data from the evaluation of a small set of perennial wheat breeding lines in Australia during 2009-11. We calculate a net return threshold and a potential environmental subsidy and evaluate the potential for changes in yield, price, and perenniality to enhance the commercial viability of PW. Increasing absolute grain yields seems to be the most promising option for further research and development. In all cases, increasing the price of PW through increasing grain quality without making additional improvements to other PW traits would require grain prices that exceed the range of currently feasible market levels. This paper generates a simple but versatile framework for the ex ante economic evaluation of new conservation technologies. The framework can be used to estimate a benchmark level of economic performance that must be achieved in order for a practice to be deemed economically attractive and ultimately adopted by producers. This framework can be used to inform technology developers of the most economically productive avenues for further refinement of their nascent technologies, thereby increasing the potential for their adoption by farmers. |
| Keywords: | technology development, conservation, comparative breakeven, perennial wheat, Demand and Price Analysis, Environmental Economics and Policy, Research and Development/Tech Change/Emerging Technologies, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124723&r=env |
| By: | Houba, Harold; Pham Do, Kim Hang; Zhu, Xueqin |
| Abstract: | The Mekong River is shared by six Asian countries. Over the years there has been both conict and cooperation on managing the water resources to meet population growth, climate change and the desire for economic development. This paper exploits an axiomatic bargaining approach to examine how China and the Mekong River Commission (MRC) might negotiate e¤ective joint management. We show that there are signi cant welfare gains from cooperation in this region; an exogenous budget provides stronger incentives for cooperation; and the MRC should be extended to include all a¤ected nations for sustainable management and future development. The economic costs of the current weak governance and its e¤ects on the negotiated joint management are discussed.. |
| Keywords: | Joint River-Basin Management, Transboundary River, Nash Bargaining Solution, Optimization, Mekong River., International Development, Resource /Energy Economics and Policy, C71, C72, D62, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare12:125063&r=env |
| By: | Michele Ruta; Anthony J venables |
| Abstract: | Natural resources account for 20% of world trade, and dominate the exports of many countries. Policy is used to manipulate both international and domestic prices of resources, yet this policy is largely outside the disciplines of the WTO. The instruments used include export taxes, price controls, production quotas, and domestic producer and consumer taxes (equivalent to trade taxes if no domestic production is possible). We review the literature, and argue that the policy equilibrium is inefficient. This inefficiency is exacerbated by market failure in long run contracts for exploration and development of natural resources. Properly coordinated policy reforms offer an avenue to resource exporting and importing countries to overcome these inefficiencies and obtain mutual gains. |
| Keywords: | natural resources, trade, export tax, tariff escalation, OPEC, WTO, terms of trade |
| JEL: | F1 F13 Q3 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:084&r=env |
| By: | Kirby, Mac; Mainuddin, Mohammed; Gao, Lei; Connor, Jeffery D.; Ahmad, Mobin-ud-Din |
| Abstract: | We aim to model the impact of variability in and changes to water availability in the Murray-Darling Basin on flows available to the environment and irrigation, and impact on the value of irrigated agricultural production. Our objective is to understand the opportunities for changed management of the basin, how they are constrained by climate change and other factors, and how they might affect the returns to irrigation and flows for the environment, so that we may provide information to help plan for the future. In this paper we describe the model: in other papers in this conference we describe analyses of water availability and use in the basin based on this model. The hydrology component of the model is based on a simple, monthly water balance stocks and flows model of the basin, subdivided into 58 catchments. In each catchment, the rainfall and potential evapotranspiration are used to partition the rain between actual evapotranspiration and runoff. Runoff accumulates in the rivers, and flows downstream; it is stored in dams, fills lakes and wetlands from which it evaporates, spills onto and is partly consumed on the floodplains, is diverted for irrigation, eventually (if enough water remains) flowing out of the mouth. This hydrology part of the model is calibrated against observations of flow at the downstream flow gauge of the 58 catchments (the records of which vary from a few years to the full 114 years of our typical simulation period from 1895-2009). It simulates reasonably well the full range of flows, and the development of dams and irrigation diversions. The economics part of the model is based on regressions with dependent variables: the observed areas, production, water use and gross value of production of irrigated agriculture. Each dependent variable is estimated as functions of water available, evaporation and rainfall, and crop prices, for ten major commodity groups. The regressions are based on data for 17 regions and four recent years during the drought: they cover a wide range of water uses, water availability, rainfall, evaporation and commodity price circumstances observed during the drought. We report separately in this conference on this statistical analysis (Connor et al, 2012a. In the integrated model, the hydrology model first determines the availability of water for irrigation in the 58 catchments and also calculates the flows, on a monthly cycle. Once per year, the water availability values are aggregated to the 17 economic regions, and the economic model determines the irrigation outcome in terms of areas under each commodity group in each region and the gross value of production. The integrated model has some unique features in comparison to existing MDB economics models: the coupling of economics with detailed hydrology; the ability to simulate active management of environmental flows and the resulting consumptive water use economic impacts; and, the ability to simulate the dynamics of the water balance and economic impact over 114 year historical and simulated future climate sequences. |
| Keywords: | Crop Production/Industries, |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare12:124487&r=env |
| By: | Chalak, Morteza; Pannell, David J. |
| Abstract: | Although there have been numerous studies on the economics of weed control, relatively few of these studies have focused on natural ecosystems. The aims of this papers are: A) to identify the combination of control options that is optimal for blackberry (Rubus anglocandicans) in Australian natural ecosystems, B) to assess whether an integrated control strategy is superior to chemical-only strategies, C) to evaluate the economic net benefits of specific biologically oriented control methods (a rust and grazing by goats), D) to determine how changes in model parameters affect the optimal control strategy. To address these aims, a stochastic dynamic simulation model and a stochastic dynamic programming model are developed. The results indicate that, while an integrated strategy combining chemical and non-chemical control methods may be optimal in certain circumstances, it is not necessarily superior to a chemical-dominant strategy in all cases. Results show that in most cases a combination of herbicides and one physical control method (mowing) is optimal in the base-case scenario. However, if chemical efficacy is greater than in the base-case, the optimal strategy involves chemicals only. The results indicate that grazing goats for control of blackberry can be optimal despite its stochastic effectiveness and relatively low efficacy. |
| Keywords: | environment, economics, weed, stochastic, optimisation, management, Environmental Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124373&r=env |
| By: | Cortés, Gonzalo; Schaller, Sven; Rojas, Maisa; Garcia, Lilian; Descalzi, Aniella; Vargas, Luis; McPhee, James |
| Abstract: | This report describes the methodology and results from the analysis of climate scenarios and their impact on hydrometeorological variables in the Metropolitan Region of Santiago de Chile (MRS). Using a downscaling methodology for future scenarios A2 and B1, according to IPCC, temperature, precipitation and secondary variable trends were estimated for the time-window 2045-2065. The main results predict that Santiago will be a dryer and hotter city in the near future, with a high number of days with extreme temperatures. Due to lower precipitation rates, decreasing magnitudes in the streamflow of the two main rivers, Maipo and Mapocho, are expected. The presented data provide a basis for the ClimateAdaptationSantiago (CAS) project as the aim of that project is to elaborate, evaluate and prioritize adaptation measures to the climate change in the MRS. -- |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ufzrep:032012&r=env |
| By: | Yu, T. Edward; Fu, Joshua S.; Larson, James A.; English, Burton C.; Ugarte, Daniel De La Torre; Wilson, Bradly; Yun, Jeongran; Calcagno, Jimmy III |
| Keywords: | Research Methods/ Statistical Methods, Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124900&r=env |
| By: | Victoria I Mumanskaya; Charles F Mason; Edward B Barbier |
| Abstract: | In this paper, we explore the use of trade policy in addressing transboundary stock pollution problems such as acid rain and water pollution. We show that a tariff determined by the current level of accumulated pollution can induce the time path of emissions optimal for the downstream (polluted) country. But if the upstream (polluting) country can lobby the downstream government to impose lower tariffs, distortions brought by corruption and foreign lobbying lead to a rise in the upstream country’s social welfare, and to a decrease in social welfare in the downstream country. Thus, the usefulness of trade policy as a tool for encouraging cooperation and internalizing transboundary externalities depends critically on the degree of governments’ susceptibility to foreign political influence. |
| Keywords: | Trade, Transboundary, Pollution, Foreign Lobbying |
| JEL: | D72 F18 F59 Q56 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:071&r=env |
| By: | Beckman, Jayson F.; Xiarchos, Irene M. |
| Keywords: | Agribusiness, Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124444&r=env |
| By: | Kaplan, Jonathan; Howitt, Richard E.; Kroll, Stephan |
| Keywords: | Land Economics/Use, Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124855&r=env |
| By: | Useche, Pilar; Blare, Trent |
| Abstract: | Many factors besides profit maximization such as nonmarket ecological and social benefits influence smallholder households to adopt one agricultural production system or another. Thus, different techniques are needed that take into consideration more than monetary income to fully capture these additional benefits in order to better understand the production decision of smallholder farmers. We build upon previous work on the household model and shadow wage estimation to develop a shadow wage for Ecuadorian cacao producers that includes these nonmarket benefits. We found that the shadow wage correctly indicated that these households would prefer to use an agroforestry production system instead of the more profitable modern system because these additional nonmarket benefits in additional to the economic benefits from participating in specialty markets make the traditional cropping system more attractive to these households. |
| Keywords: | Crop Production/Industries, Environmental Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124738&r=env |
| By: | Beare, Stephen; Chambers, Raymond |
| Abstract: | Environmental intervention is often seen as being high risk and high return. Traditional scientific hypothesis testing provides limited guidance to policy makers unless there is a high level of certainty in the supporting scientific evidence. Traditional cost-benefit analysis under uncertainty has shortcomings when considering high-risk investment, largely due to the choice of how to discount uncertainty outcomes. A corollary is that traditional cost-benefit analysis does not place a value on increased certainty, an important outcome of successful scientific research. A fiducial costbenefit methodology is presented in this paper, which integrates hypothesis testing and traditional cost-benefit analysis. The fiducial approach is one way of objectively placing a value on changes in the level of uncertainty that does not depend on an assumption about a decision maker's attitudes towards variability in returns. This has two important implications. First, there is a level of uncertainty at which we would reject an investment with a positive expected net rate of return on the basis that the uncertainty associated with the outcome is too great. Second, it is possible to value a program of research that reduces the uncertainty about a critical decision parameter. An example based on data from a weather modification experiment conducted in South Australia is presented. The approach is the generalised using more traditional statistical methodology. |
| Keywords: | Cost-benefit, risk, uncertainty, cost-benefit, fiducial inference, Research and Development/Tech Change/Emerging Technologies, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare12:124232&r=env |
| By: | Register, D. Lane; Lambert, Dayton M.; English, Burton C.; Jensen, Kimberly L.; Menard, R. Jamey; Wilcox, Michael D. |
| Abstract: | Recent developments in firm location analysis are applied to explore the concentration patterns of firms making up the green energy sectors in 2002 and 2006. A two-step procedure is applied in this analysis. First, Guimarães, Figueiredo, and Woodward’s spatial adaption of Ellison and Glaeser’s industry concentration index are applied to estimate the degree to which firms making up the so-called green energy sectors tend to exhibit concentration. In the second stage, the spatial distribution of concentration is analyzed using a statistical framework, also suggested by Guimarães, Figueiredo, and Woodward. Preliminary results suggest that green energy subsectors exhibit significant global concentration, but localized concentration appears to be random. |
| Keywords: | global, local, industry concentration measures, green energy sectors, Community/Rural/Urban Development, Research Methods/ Statistical Methods, C21, L20, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124038&r=env |
| By: | Parry, Ian W.H.; Timilsina, Govinda R. |
| Abstract: | Economically efficient prices for the passenger transportation system in the Greater Cairo Metropolitan Area would account for broader societal costs of traffic congestion and accidents, and local and global pollution. A $2.20 per gallon gasoline tax (2006 US$) would be economically efficient, compared with the current subsidy of $1.20 per gallon. Removal of the existing subsidy alone would achieve about three-quarters of the net benefits from subsidy elimination and the tax. Per-mile tolls could target congestion and accident externalities more efficiently than fuel taxes, although they are not practical at present. A combination of $0.80 per gallon gasoline tax to address pollution (versus $2.20 without tolls), and $0.12 and $0.19 tolls per vehicle mile on automobiles and microbuses, respectively, to address traffic congestion and accident externalities (versus $0.22 without fuel taxes) would be most efficient. Current public bus and rail subsidies are relatively close to efficient levels in the absence of such policies; however, if automobile and microbus externalities were fully addressed through more efficient pricing, optimal subsides to public transit would be smaller than current levels. |
| Keywords: | Transport Economics Policy&Planning,Roads&Highways,Airports and Air Services,Transport and Environment,Energy Production and Transportation |
| Date: | 2012–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6083&r=env |
| By: | Linda T. M. Bui (Department of Economics, Brandeis University) |
| Abstract: | Using the TRI to understand polluting behavior can pose challenges due to the limited number of chemicals that are reported, the potential confounding effect of several regulatory programs that affect TRI substances, the lack of output information, and judgments regarding appropriate measures of releases. In an effort both to help illustrate and clarify these issues, I study TRI data from the petroleum refining industry using a balanced panel of 199 refineries from 1988-2003. I find that (1) although both aggregate and toxicity-weighted releases exhibited large declines over the period of study, the pattern of releases were substantially different, strongly suggesting that any inference that is drawn from the data will be sensitive to the measure of releases; and (2) regulatory programs can affect TRI releases both directly and indirectly. The direct effect occurs because emissions of several TRI substances are simultaneously regulated under the CAA and CWA (and other environmental programs and policies. The indirect effect occurs when regulatory programs induce changes in the set of inputs or the production process, leading to changes in TRI releases of substances that are not directly regulated under these programs. Thus, simply “netting-out” CAA and CWA substances from the TRI will not necessarily remove the confounding effects of these regulatory programs. |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:brd:wpaper:45&r=env |
| By: | Lu, Liang; Elbakidze, Levan |
| Abstract: | In this study, we formulate a stochastic dynamic framework for pest control over the growing season taking into account forecasts of weather conditions and pest infestation expectations. Using stochastic envelope theorem and stochastic comparative dynamics, we analytically show how the stochastic correlation between the prediction errors should affect optimal pesticide usage path. As a case study, we apply the analytical results of the paper for pesticide use in the Palouse region of Washington where pea aphid is the primary threat for lentil production. By stochastic dynamic programming, our simulation shows the optimal dimethoate usage path, which illustrates our findings in the analytical part. |
| Keywords: | Stochastic Optimal Control, Climate Change, Pest Management, Crop Production/Industries, Farm Management, Q10, Q54, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124971&r=env |
| By: | Qiu, Feng |
| Abstract: | In this paper, we introduce the copula approach to the empirical research of asymmetric price transmission. The proposed methodology serves as an appropriate improvement for investigating price co-movement and market integration as it allows for flexible dependence/ structures among price adjustments/reactions along supply chain markets. In addition, we address the potential bias and inconsistency issue that results from ignorance of the volatility trait of price or price changes. In the empirical application, we exploit a state-dependent copula method, with generalized autoregressive conditional heteroskedasticity (GARCH) as marginals, to construct bivariate dynamic copula-GARCH models in the U.S. hog supply chain. The method can simultaneously capture both volatility in univariate price changes and dynamic relationships among price movements. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2012–08–12 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124906&r=env |