|
on Environmental Economics |
| By: | Rojas Lara, Teresa |
| Abstract: | Globally, land use changes and deforestation contribute with around 20% of the green house gases emissions. Payments for Environmental Services (PES) schemes constitute a way to cope with these problems and promote the conservation of natural resources using market-based incentives. Through empirical evidence from Peru, this study assesses the impact of payments for carbon reductions and analyzes factors which can contribute to the adoption of these projects. Household behavior is analyzed with a linear programming model. The preliminary results indicate that carbon payments would increase the income of the farmers, thus could contribute to increase the adoption of these projects. |
| Keywords: | Climate Change, Peru, Payments for Environmental Services (PES), Mathematical Programming, Agricultural and Food Policy, Environmental Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126807&r=env |
| By: | Ceyhun Elgin; Ummad Mazhar |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:bou:wpaper:2012/07&r=env |
| By: | Sachs, Jeffrey D. (Asian Development Bank Institute); Someshwar, Shiv (Asian Development Bank Institute) |
| Abstract: | The authors set out to explore some of the ways that equity has been considered in climate change discussions. They discuss per capita emission right approaches, and highlight key challenges in the application of equity in global climate change negotiations. They provide a brief overview of key approaches to carbon financing, focusing on some recent cost estimations of potential climate change impacts, as well as of projected needs for green growth programs. The diversity of estimates and present evidence on the apparent gulf between available public financing and green growth needs are highlighted; and considerations of implementing green growth, focusing on building climate resilience and responding to climate shocks are discussed. |
| Keywords: | green growth; climate change; carbon financing; climate shocks |
| JEL: | Q20 Q50 |
| Date: | 2012–07–17 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:0371&r=env |
| By: | Alexandre BERTHE (GREThA, CNRS, UMR 5113); Sylvie FERRARI (GREThA, CNRS, UMR 5113) |
| Abstract: | Within the context of the large depletion of environmental resources, global pollution and damage to the ecosystem, new questions of justice have arisen. Based on this assessment, we present and discuss the usefulness of various conceptions of ecological inequalities. We adapt various theories of justice in order to define ecological inequalities normatively, identifying certain social objectives of ecological justice for the use of economists. We then apply those approaches to the case of a theoretical example based on island submersion in the context of climate change. |
| Keywords: | Ecological inequality, justice, climate change, sustainability. |
| JEL: | Q56 D63 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:grt:wpegrt:2012-17&r=env |
| By: | Di Falco, Salvatore; Veronesi, Marcella |
| Abstract: | This study investigates the impact of climate change adaptation on farm households’ downside risk exposure in the Nile Basin of Ethiopia. The analysis relies on a moment-based specification of the stochastic production function. We use an empirical strategy that accounts for the heterogeneity in the decision on whether to adapt or not, and for unobservable characteristics of farmers and their farm. We find that (i) past adaptation to climate change adaptation reduces current downside risk exposure, and so the risk of crop failure; (ii) climate change adaptation would have been more beneficial to the non-adapters if they adapted, in terms of reduction in downside risk exposure; and (iii) climate change adaptation is a successful risk management strategy that makes the adapters’ more resilient to climatic conditions. |
| Keywords: | adaptation, climate change, downside risk exposure, environmental risk, Environmental Economics and Policy, Risk and Uncertainty, D80, Q18, Q54, |
| Date: | 2012–06–20 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa126:126010&r=env |
| By: | Fellmann, Thomas; Dominguez, Ignacio Perez; Witzke, Heinz-Peter; Oudendag, Diti |
| Abstract: | The contribution of the agricultural sector to climate change is gaining more and more visibility and therewith, interest is growing on policy options to induce agricultural GHG mitigation. However, so far only little is known about the different impacts of specific policies on GHG mitigation on the one hand and agricultural production and markets on the other hand. This paper provides an empirical analysis of the impact of three alternative abatement policies (implementing an emission standard, tradable emission permits and a livestock emission tax) to reduce agricultural GHG emissions in the EU. The policy scenarios are designed to achieve a 20% reduction of EU agricultural GHG emissions in 2020 compared to 2004. Projection results show that emission reduction effects per EU Member State in each scenario are quite different from the EU average, depending on the production level and the composition of the agricultural activities. Moreover, the policy instrument chosen makes a considerable difference with regard to effects on production, cost-effectiveness and income redistribution within the agricultural sector. It is also highlighted that an effective emission reduction commitment in the EU would be diminished due to a shift of emissions from the EU to the rest of the world (emission leakage), mainly as a result of higher net imports of feed and animal products. The estimates provided can feed the discussion on the feasibility of integrating the agricultural sector in multi-sectoral emission abatement policies currently in place (e.g. EU emission trading directive) or under consideration. |
| Keywords: | GHG emissions, EU, agricultural sector, mitigation policies, CAPRI model, Agricultural and Food Policy, Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126815&r=env |
| By: | Hansen, James M.; Tuan, Francis C.; Somwaru, Agapi |
| Abstract: | This study analyzes the potential impact of climate change and the uncertainty of CO2 fertilization on China's corn, wheat and rice domestic agricultural markets and the international markets out to the year 2050. The study provides a brief background and reviews research literature of climate change effects on China's crop yields. The paper presents the potential impact of climate change on China's yields and attempts to quantify the domestic and global market impacts. The analysis has four scenarios, which assumes two future levels of greenhouse gas emissions with the effects of CO2 fertilization and no CO2 fertilization. A 27 country commodity partial equilibrium simulation mathematical programming model (PEATSim) is used for this analysis. Results indicate under CO2 fertilization, which increases yields, China's grain imports may decrease leading to a decrease in international prices. Under no CO2 fertilization, yields decrease, China's grain imports may increase leading to increased international prices. |
| Keywords: | China, trade, climate change, rice, wheat, corn, dynamic partial equilibrium simulation mathematical model., Crop Production/Industries, Environmental Economics and Policy, International Relations/Trade, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126878&r=env |
| By: | Howes, Stephen (Asian Development Bank Institute); Wyrwoll, Paul (Asian Development Bank Institute) |
| Abstract: | Developing Asia is the driver of today’s emissions intensive global economy. As the principle source of future emissions, the region is critical to the task of global climate change mitigation. Reflecting this global reality and a range of related domestic issues, the governments of the People’s Republic of China, India, Indonesia, Thailand, and Viet Nam have embarked upon an ambitious policy agenda. This report reviews the present and future policy settings for climate change mitigation and green growth in Asia’s major emerging economies. |
| Keywords: | global climate change; developing asia; green growth; asia emerging economies |
| JEL: | O10 O44 Q40 Q42 Q53 Q54 Q56 Q58 |
| Date: | 2012–07–11 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:0369&r=env |
| By: | Wamisho, Kassu |
| Abstract: | This article examines the cost of reducing CO2 emissions in a sample of recently built dry-grind corn ethanol plants. The analysis estimates a translog minimum value function that represents both the minimum cost and the minimum CO2 emissions for given levels of ethanol production. The results indicate that the average plant is able to reduce GHG emissions by 36 percent relative to the level under cost minimization, but production costs are 22 percent higher. The reallocations by which these emissions reductions are achieved are primarily the substitution of wet for dry distillers grains, with the corresponding reduction in the use of natural gas and electricity. To move from least cost to least emissions allocations, ethanol plants would on average produce 25 % more of wet byproduct and 47% less of dry byproduct. Comparing results across observations, the estimated shadow cost of emission abatement ranges from $86 to $190 per ton of CO2, with average value of $124 per ton. This implied shadow cost of abatement can be used as a bench mark for pollution trading and serves to assess the potential response to biofeul regulations. |
| Keywords: | GHG abatement, shadow price of abatement, corn ethanol, Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126862&r=env |
| By: | Finco, Adele; Bentivoglio, Deborah; Rasetti, Michele; Padella, Monica; Polla, Piergiuseppe; Cortesi, Davide |
| Abstract: | The Kyoto protocol and the EU Directive 2009/28/EC focus their attention on the reduction of greenhouse gases (GHG) emissions. The use of biofuels in the transport sector is one of the main measures proposed. This paper evaluates the environmental impact, in terms of GHG emissions, of the production and use of rapeseed biodiesel, comparing the results with conventional diesel. The methodology used is the Life Cycle Assessment (LCA). The results of the analysis show that the production of rapeseed biodiesel entails a substantial reduction of the GHG emissions compared to the diesel production system. Furthermore, the agricultural phase is identified as the process which causes the largest amount of GHG emissions in biodiesel life cycle. Therefore it could be possible to improve further the environmental performance of biodiesel intervening properly at that stage. |
| Keywords: | Biodiesel, Sustainability criteria, GHG emissions, LCA, Agricultural and Food Policy, Environmental Economics and Policy, Resource /Energy Economics and Policy, Q01, Q28, Q42, |
| Date: | 2012–06–28 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126447&r=env |
| By: | Mireille Chiroleu-Assouline (Centre d'Economie de la Sorbonne - Paris School of Economics); Mouez Fodha (LEO - Université d'Orléans) |
| Abstract: | European countries have increased their use of environmental tax instruments by designing new tax bases. But, many countries have to face the opposition of the public opinion, for fear of the distributive consequences of these environmental tax reforms. This paper sheds light on the distributive consequences of environmental tax policies when households are heterogeneous. The objective is to assess whether an environmental tax reform could be Pareto improving, when the revenue of the pollution tax is recycled by a change in the labor tax properties. We show that, whatever the degree of regressivity of the environmental tax alone, it is possible to design a recycling mechanism that renders the tax reform Pareto improving, by simultaneously decreasing the average rate of the wage tax annd increasing its progressivity. |
| Keywords: | Environmental tax reform, heterogeneity, welfare analysis, tax progressivity. |
| JEL: | D60 D62 E62 H23 |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:12048&r=env |
| By: | Burgess, Robin; Hansen, Matthew; Olken, Benjamin; Potapov, Peter; Sieber, Stefanie |
| Abstract: | Tropical deforestation accounts for almost one-fifth of greenhouse gas emissions worldwide and threatens the world's most diverse ecosystems. The prevalence of illegal forest extraction in the tropics suggests that understanding the incentives of local bureaucrats and politicians who enforce forest policy may be critical to combating tropical deforestation. We find support for this thesis using a novel satellite-based dataset that tracks annual changes in forest cover across eight years of institutional change in post-Soeharto Indonesia. Increases in the numbers of political jurisdictions are associated with increased deforestation and with lower prices in local wood markets, consistent with a model of Cournot competition between jurisdictions. We also show that illegal logging and rents from unevenly distributed oil and gas revenues are short run substitutes, but this effect disappears over time as political turnover occurs. The results illustrate how incentives faced by local government o¢ cials affect deforestation, and provide an example of how standard economic theories can explain illegal behavior. |
| Keywords: | biodiversity; climate change; corruption; Cournot competition; deforestation; environmental monitoring; illegal logging; political economy; satellite imagery |
| JEL: | D73 L73 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:9020&r=env |
| By: | Perez Hernandez, Pedro Pablo; Martin Lozano, Jose Manuel; Salazar-Ordonez, Melania |
| Abstract: | Since 2006 to nowadays sugar beet in Europe has suffered a deep transformation with the new Common Market Organization. That year, in Spain, farms gave up 50% of production quota. New century has come accompanied by different EU strategies, including the obligation of stimulating new energy sources development especially renewable energies. From a double perspective, the authors have made an empirical approach to learn about future viability of this sector in Spain. First of all, we present an economic analysis to reflect the actual situation of market goods offered by this farming. Then we present environmental efficiency analysis (Greenhouse Gases emissions) caused by sugar beet farms with the aim of studying environmental non-market goods derived from bio-ethanol production. Goods that take part of the environmental function of this economical activity as a positive externality which has become an essential characteristic of EU agrarian system. |
| Keywords: | Sugar Beet, Environmental Efficiency Analysis, Greenhouse Gases emissions, Agricultural and Food Policy, Environmental Economics and Policy, Q15, Q16, Q18, |
| Date: | 2012–08–22 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126451&r=env |
| By: | Halkos, George; Tzeremes, Nickolaos |
| Abstract: | By using conditional directional distance functions this paper investigates the effect of regional economic growth on regions’ environmental efficiency in greenhouse gas emissions. A sample of ninety eight regions (NUTS 2 level) from Germany, France and the U.K. has been used and regional environmental inefficiencies have been obtained using both the unconditional and conditional output directional distance functions. The results reveal that German regions have the highest environmental efficiency levels. In addition it appears that the effect of regional economic growth on regions’ environmental efficiency levels varies between regions and countries due to different national administrative arrangements on the implementation of environmental policies. |
| Keywords: | Regional environmental efficiency; directional distance function; stochastic kernel; nonparametric regression |
| JEL: | Q50 Q56 R15 R11 C60 |
| Date: | 2012–07–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:40015&r=env |
| By: | Shobe, William M.; Burtraw, Dallas (Resources for the Future) |
| Abstract: | Climate change policy analysis has focused almost exclusively on national policy and even on harmonizing climate policies across countries, implicitly assuming that harmonization of climate policies at the subnational level would be mandated or guaranteed. We argue that the design and implementation of climate policy in a federal union will diverge in important ways from policy design in a unitary government. National climate policies built on the assumption of a unitary model of governance are unlikely to achieve the expected outcome because of interactions with policy choices made at the subnational level. In a federal system, the information and incentives generated by a national policy must pass through various levels of subnational fiscal and regulatory policy. Effective policy design must recognize both the constraints and the opportunities presented by a federal structure of government. Furthermore, policies that take advantage of the federal structure of government can improve climate governance outcomes. |
| Keywords: | climate change, subsidiarity, states, federalism, climate governance |
| JEL: | Q54 Q58 H7 |
| Date: | 2012–01–27 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-12-04&r=env |
| By: | Marangon, Francesco; Troiano, Stefania |
| Abstract: | In this paper we try to understand if it is possible to create a market for ecosystem services deriving from rural landscape and environmental conservation. First of all to do this we consider the results of some studies we conducted during last years about monetary and no-monetary environmental evaluation. These studies help us firstly to identify some rural landscape features able to improve or to worsen landscape aspect and secondly to point out the willingness to pay of beneficiaries to maintain landscape and environment features. Then to understand if it is possible to increase social benefits by using market and economic instruments in favor of landscape and environmental resources conservation, we study Payments for Ecosystem Services (PES). PES are economic instruments that can be used to support ecosystem services conservation and improvement. We describe this instrument and discuss the opportunity to introduce it in favor of some ecosystem services in Italy. |
| Keywords: | Payment for Ecosystem Services, landscape, environmental resources, Environmental Economics and Policy, Q56, |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa126:126053&r=env |
| By: | Phani, Gayatri Yammanuru; Jose, Monish |
| Abstract: | Emissions trading is a market-based Kyoto mechanism that is aimed to assist the nations in achieving emission reduction targets in a cost effective manner. However, it is least explored in the agricultural sector though 15 percent of the global GHG emissions are from agriculture. Thus, the paper attempts to study the effect of emissions trading as a greenhouse gas mitigation mechanism in order to reduce methane emissions from paddy cultivation. |
| Keywords: | Agriculture, Emissions Trading and Methane emissions, Agricultural and Food Policy, Demand and Price Analysis, Resource /Energy Economics and Policy, |
| Date: | 2012–08–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126322&r=env |
| By: | Corrado Di Maria (University of Birmingham); Ian Lange (University of Stirling); Edwin van der Werf (Wageningen University) |
| Abstract: | This paper presents the first empirical test of the green paradox hypothesis, according to which well-intended but imperfectly implemented policies may lead to detrimental environmental outcomes due to supply side responses. We use the introduction of the Acid Rain Program in the U.S. as a case study. The theory predicts that owners of coal deposits, expecting future sales to decline, would supply more of their resource between the announcement of the Acid Rain Program and its implementation; moreover, the incentive to increase supply would be stronger for owners of high-sulfur coal. This would, all else equal, induce an increase in sulfur dioxide emissions. Using data on prices, heat input and sulfur content of coal delivered to U.S. power plants, we find strong evidence of a price decrease, some indication that the amount of coal used might have increased, and no evidence that the announcement of the Acid Rain Program led the use of higher sulfur coal. Overall, our evidence suggests that while the mechanism indicated by the theory might be at work, market conditions and concurrent regulation prevented a green paradox from arising. These results have implications for the design of climate policies. |
| Keywords: | Green Paradox, Implementation Lags, Announcement Effects, Climate Policy, Acid Rain Policy |
| JEL: | Q31 Q38 Q53 Q54 Q58 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2012.49&r=env |
| By: | Hottenrott, Hanna; Rexhäuser, Sascha; Veugelers, Reinhilde |
| Abstract: | The literature on within-firm organizational change and productivity suggests that firms can make more efficient use of certain technologies if complementary forms of organization are adopted. This issue may be of even greater importance for the case of greenhouse gas (GHG) abatement technologies imposed by public authority as to reduce social costs of climate change while they are not necessarily expected to increase private returns. Previous research, however, has largely neglected this aspect. Using German firm-level data, we find that organizational change increases the returns to the use of CO2 reducing technologies and that joint adoption leads to higher productivity. Without having introduced complementary organizational innovations, the adoption of CO2 reducing technologies is associated with lower productivity. |
| Keywords: | environmental innovation; Firm behavior; innovation; organizational change; productivity; technical change |
| JEL: | D23 D24 L23 O32 O33 Q55 |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:9055&r=env |
| By: | Patino Echeverri, Dalia; Burtraw, Dallas (Resources for the Future); Palmer, Karen (Resources for the Future) |
| Abstract: | Regulators often seek to promote the use of improved, cleaner technology when new investments occur; however, technology mandates are suspected of raising costs and delaying investment. We examine investment choices for electricity generation under a strict emissions rate performance standard requiring the installation of carbon capture and storage (CCS) on fossil-fired plants. We compare the strict standard with a flexible one that imposes a surcharge for emissions in excess of the standard. A third policy allows the surcharge revenue to fund later CCS retrofits. Analytical results indicate that increasing flexibility leads to earlier introduction of CCS, lower aggregate emissions and higher profits. We test this using multi-stage stochastic optimization, with uncertain future natural gas and emissions allowance prices. Under perfect foresight, the analytical predictions hold. With uncertainty, these predictions hold most often but we find outcomes that contradict the theory. In some cases, investments are delayed to enable the decisionmaker to learn additional information. |
| Keywords: | technology standards, innovation, climate change, uncertainty, carbon capture and storage |
| JEL: | Q52 Q55 Q58 |
| Date: | 2012–03–27 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-12-14&r=env |
| By: | Solovyeva, Irina; Nuppenau, Ernst-August |
| Abstract: | The debate on optimization of policies and instruments of the European agriculture has been lasting for several decades and still there is no unified opinion on that aspect. Although there is an unanimity on targets these policies should achieve, there is an ongoing discussion on policy tools and instruments for practical implementation of CAP in connection with agri-environmental payments. The aim of this paper is to contribute to this discussion by looking at the developed approaches to evaluate environmental and economic efficiency simultaneously as well as to examine possibilities for more targeted agricultural support by an implementation of economic-environmental efficiency analysis. In this regard it is especially interesting to consider the case of support for sustainable land use practices such as in HNV farming (high nature value) and the opportunities of implementing such analyses in areas of HNV agriculture: we consider in particular disadvantageous mountain areas in the Romanian Carpathians and the bordering areas in the Ukrainian Carpathians. |
| Keywords: | CAP measures, agri-environmental payments, economic-environmental efficiency, HNV farming, Agricultural and Food Policy, Environmental Economics and Policy, Q18, Q56, Q57, |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa126:125648&r=env |
| By: | Patil, Vikram S.; Chandrakanth, Mysore G.; Gangadharappa, N.R. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126740&r=env |
| By: | Jing Lan (National Graduate Institute for Policy Studies); Alistair Munro (National Graduate Institute for Policy Studies) |
| Abstract: | By using a unique cross-sectional dataset of Chinese industrial firms, this paper investigates the external and internal effects of human capital on firms’ environmental performance. The result shows that firms have better environmental compliance because they are ‘pushed’ into making compliance decision by internal driver of human capital and ‘pulled’ to be environmental friendly by external force of social human capital stock. This finding is robust when we take into account of possible endogeneity of human capital. In addition, evidence from this study suggests that the situation of weak implementation of environmental supervision and evasion of environmental monitoring could be reconciled by internal and external effects of human capital. |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:ngi:dpaper:12-05&r=env |
| By: | Kimura, Shingo; Anton, Jesus; Cattaneo, Andrea |
| Abstract: | There is growing concern about the impact of climate change on agriculture and the potential need for better risk management instruments that respond to a more risky environment. This is based on the widespread assumption that climate change will increase weather and yield variability and will expose farmers to higher levels of risk. But it is not obvious what will be the net impact of those on the distribution of yields and its correlation with weather indexes. Five stylized scenarios for crop yields are built on the basis of the available empirical information: baseline, marginal climate change without adaptation, with adaptation and with misalignment of expectations, and an extreme events scenario. A micro simulation model is calibrated using micro farm level data from the Canadian province of Saskatchewan. Four alternative policy measures are analyzed: three types of subsidized insurance (individual yield, area-yield and weather index) and an ex post disaster payment. Results on insurance uptake, budgetary costs and impacts on diversification, farmers’ welfare and farm income variability, are presented for three different types of farms. The paper goes beyond indentifying the effectiveness of risk management instruments under stylized climate change scenario and analyze the policy decision criteria when policy makers face ambiguous climate change contingencies. |
| Keywords: | climate change, crop insurance, risk management and weather index insurance, Crop Production/Industries, Environmental Economics and Policy, Risk and Uncertainty, D81 / Q12, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126736&r=env |
| By: | Yu, Bingxin; Zhu, Tingju; Breisinger, Clemens; Manh Hai, Nguyen |
| Abstract: | Vietnam is likely to be among the hardest hit countries by climate change, which may threaten the recent progress it has made in accelerating agricultural growth and poverty reduction. To examine how agriculture and the rural poor may be affected by a changing climate, this paper measures Vietnamese farmers’ adaptation behavior in terms of adjustments to the production portfolio and input usage. Specifically, the paper estimates a rice yield function based on household-level crop production, long-term climate measurements and recent weather shocks. The results suggest that rice production will suffer from climate change. However, Vietnamese farmers are likely to respond to changes in rainfall and temperature by adjusting input usage. While this will help maintaining productivity levels, expanding irrigation and agricultural intensification will be key components of climate change adaptation strategies at farm and national level. Localized policy packages aiming at increasing yield by focusing on vulnerable groups (ethnic-minority and/or the poor) can help achieve multiple development goals of poverty reduction, food security and climate change adaptation. |
| Keywords: | Climate change, poverty, Vietnam, rice, control function, weak instruments, multiple endogenous variables, Heckman, Agricultural and Food Policy, Environmental Economics and Policy, Food Security and Poverty, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126876&r=env |
| By: | Manuel Frondel; Christoph M. Schmidt; Colin Vance |
| Abstract: | This article revisits an analysis by Frondel, Ritter and Schmidt (2008) of Germany’s Renewable Energy Act, which legislates a system of feed-in tariff s to promote the use of renewable energies. As in the original article, we argue that Germany’s support scheme subsidizes renewable energy technologies not based on their long-term market potential, but rather on their relative lack of competitiveness, with the photovoltaics (PV) technology enjoying high feed-in tariffs, currently over double those of onshore wind. The result is explosive costs with little to show for either environmental or employment benefits. Indeed, we document that the immense costs foreseen by Frondel and colleagues have materialized: Our updated estimate of the subsidies for PV, at 100 Bn €, exceeds their expectations by about 60%. Moreover, with installed PV capacities growing at a rapid rate, these costs will continue to accumulate, diverting resources from more cost-effective climate protection instruments. |
| Keywords: | Energy policy; employment effects; climate protection |
| JEL: | Q28 Q42 Q48 |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:rwi:repape:0353&r=env |
| By: | Mark Schopf (Faculty of Business Administration and Economics, University of Paderborn); Hendrik Ritter (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg) |
| Abstract: | This paper deals with possible foreign reactions to domestic carbon demand reducing policies. It differentiates between demand side and supply side reactions as well as between intra- and intertemporal shifts of greenhouse gas emissions. In our model, we integrate increasing marginal physical extraction costs of fossil fuels into the general equilibrium carbon leakage model of Eichner & Pethig (2011). The results are as follows: The conditions for the emergence of the weak green paradox are similar but somewhat tighter than those derived by Eichner & Pethig (2011). Additionally, a strong green paradox can arise in our model under supplemental constraints. That means a "green" policy measure might not only lead to an acceleration of fossil fuel extraction but to an increase in the cumulative extraction. |
| Keywords: | Natural Resources, Carbon Leakage, Green Paradox |
| JEL: | Q31 Q32 Q54 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:mag:wpaper:120013&r=env |
| By: | Lee G. Branstetter; William A. Pizer |
| Abstract: | Over the past two decades, the international community has struggled to deal constructively with the problem of mitigating climate change. This is considered by many to be the preeminent public policy challenge of our time, but actual policy responses have been relatively modest. This essay provides an abbreviated narrative history of international policy in this domain, with a special emphasis on aspects of the problem, proposed solutions, and unresolved issues that are of interest to international economists and informed observers of the global economic system. We also discuss the potential conflict that could emerge between free trade principles on the one hand and environmental policy objectives on the other. |
| JEL: | F18 F55 Q54 |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:18214&r=env |
| By: | Dixon, Peter B.; van Meijl, Hans; Rimmer, Maureen T.; Tabeau, Andrzej A. |
| Abstract: | This paper analyses the complex battle between RED and REDD policies and the resulting global consequences on land use, agricultural production, international trade flows and world food prices. A key methodological challenge is the representation of land use and the possibility to convert forestry land into agricultural land as REDD policies might prevent the use of forestry and wood lands for agriculture. The paper introduces a flexible land supply function allowing large changes in the total potential land availability for agriculture due to environmental considerations such as reducing emissions from deforestation. The parameters of the new land supply function are defined as variables of the model. In the paper, we simplify the implementation of the REDD policies as a shift in potential availability for agricultural land in various regions in the world. Both analysed policies are designed to save emissions but their land use impacts are opposite. The paper shows that global RED policies expand global land use with 3% relative to the baseline. Land abundant countries such as Canada, USA and Indonesia extend their use of agricultural land and their agricultural production. Severe REDD policies that protect all forest and woodlands in especially tropical land abundant regions such as Central and South America, South Africa and Indonesia imply a global reduction of agricultural land by 5% and lead to higher food and land prices. REDD policies reverse production and trade patterns as previous land abundant countries become land scarce countries. |
| Keywords: | RED, REDD, flexible land supply function, land, land use changes, Environmental Economics and Policy, Land Economics/Use, Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126361&r=env |
| By: | Yashoda; Reddy, B.V. Chinnappa |
| Abstract: | An economic study on willingness to pay by general recreationists’ who visited Basavana Betta State Forest, Karnataka, India, for water recreation revealed that average WTP for conservation of the forest ecosystem, based on the double bounded dichotomous contingent valuation method, was Rs. 846 ($17.63) per visitor as onetime payment. On the contrary WTP of recreationists of a well developed recreation spot (resort) was higher at Rs. 2367 (US$ 49.31) per visitor. There was a negative relationship between the bid amount and WTP and a positive relationship between income and WTP in both the cases. |
| Keywords: | Consumer/Household Economics, Environmental Economics and Policy, Public Economics, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126888&r=env |
| By: | Kouser, Shahzad; Qaim, Matin |
| Abstract: | Data from a farm survey and choice experiment are used to value the benefits of Bt cotton in Pakistan. Unlike previous research on the economic impacts of Bt, which mostly concentrated on financial benefits in terms of gross margins, we also quantify and monetize positive externalities associated with technology adoption. Due to lower chemical pesticide use on Bt cotton plots, there are significant health advantages in terms of reduced incidence of acute pesticide poisoning, and environmental advantages in terms of higher biodiversity and lower soil and groundwater contamination. These positive externalities are valued at US$ 79 per acre, of which half is attributable to health and the other half to environmental improvements. Adding average gross margin gains of US$ 204 results in an aggregate benefit of US$ 284 per acre of Bt, or US$ 1.7 billion for the total Bt cotton area in Pakistan. |
| Keywords: | Bt cotton, Pesticide use, Health and environmental benefits, Choice experiment, Pakistan, Environmental Economics and Policy, Health Economics and Policy, Production Economics, Research and Development/Tech Change/Emerging Technologies, D62, I15, Q51, Q57, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126544&r=env |
| By: | Ricardo Guerrero-Lemus (Departamento de Física Básica, Av. Astrofísico Francisco Sánchez s/n, Universidad de La Laguna, 38206 S/C de Tenerife, SPAIN.); Gustavo A. Marrero (Departamento de Análisis Económico, Campus de Guajara, Universidad de La Laguna, 38071 S/C de Tenerife, SPAIN.); Luis A. Puch (Departamento de Economía Cuantitativa, Universidad Complutense de Madrid, Campus de Somosaguas, 28223 Madrid, SPAIN.) |
| Abstract: | In this paper we analyze the role of changes in the fuel mix on emissions reduction and the diversification of risks associated to rising prices of energy. To this purpose we evaluate the average cost and the cost volatility of alternative fuel combinations in the road transport sector by means of the Mean-Variance Portfolio Theory. The results suggest big gains in diversification of risks and emissions reduction associated with shifts away the current fuel mix, which is more than 90% concentrated worldwide in fossil fuels. Those shifts are discussed vis à vis the policy recommendations of the International Energy Agency on fuel use in the transport sector, and both the business as usual and the low carbon scenarios of the European Commission. In particular, shifting toward an efficient system would involve optimizing the use of biofuels (mostly from endogenous feedstock), with second generation biofuels taking the lead in the long-run, and this combined with electricity from clean sources. This scenario would mean reducing cost volatility by more than 50% as well as CO2 emissions by more than 30% in the long-run. |
| Keywords: | Fuel costs, road sector, efficiency frontiers, mean-variance analysis. |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:ucm:doicae:1218&r=env |
| By: | Reetz, Sunny W.H.; Schwarze, Stefan; Bruemmer, Bernhard |
| Abstract: | The negative impacts of climate change have made poverty and deforestation topics of heightened interest within global community discussions in recent years. Our study contributes to the debate over the links between poverty and deforestation by providing an alternative approach from the village level perspective, whilst broadening the range of poverty measures based on poverty proxies and subjective well-being (SWB). We use a beta regression in our empirical model. Our results suggest that there is a non-linear relationship between SWB, as well as other poverty proxies, and deforestation. We found that objective and subjective poverty measures yielded contrasting results. |
| Keywords: | Deforestation, Subjective well-being, Poverty proxies, Community/Rural/Urban Development, Environmental Economics and Policy, Land Economics/Use, |
| Date: | 2012–06–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126326&r=env |
| By: | Dimaranan, Betina V.; Laborde, David |
| Abstract: | The impacts of the biofuel mandates in the EU and the US on agricultural markets and on the environment are assessed under three trade scenario assumptions using a global general equilibrium model. The study finds that while the biofuel mandates will result in important adjustments in global agricultural markets sector, it will generally be beneficial for the agricultural sector and farm producers, as well as on the environment in terms of reduced CO2 emissions. These benefits are further enhanced if the mandate policies are accompanied by liberalization in ethanol trade. |
| Keywords: | biofuel mandates, trade policy, ethanol, Agricultural and Food Policy, Environmental Economics and Policy, International Relations/Trade, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126869&r=env |
| By: | Fasse, Anja; Grote, Ulrike |
| Abstract: | This paper1 investigates the determinants and impact of agroforestry for smallholders in rural Tanzania. Two questions are addressed: (1) Do these factors drive farmers to grow trees? (2) To what extent does tree cultivation contribute to income generation of households? The empirical results show households with higher environmental awareness, property rights, and less yield losses cultivate more trees per acre. Also the future evaluation plays an important significant role. Here, suitable measures to increase future expectations and environmental awareness need to be developed to increase tree cultivation. However, the impact assessment shows that only trees up to a certain income level influence income positively. For more prosperous households other income sources such as cash crop production play a more important role; here trees per acre influence the income per capita negatively. This leads to the conclusion that trees may be more important for the poorer households compared to the more prosperous ones. |
| Keywords: | agroforestry, time preference, quantile regression, Tanzania, Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126666&r=env |
| By: | Dono, Gabriele; Cortignani, Raffaele; Giraldo, Luca; Doro, Luca; Ledda, Luigi; Pasqui, Massimiliano; Roggero, PierPaolo |
| Abstract: | Climate changes in agriculture act on various climate variables (precipitation, temperature, etc..) at different times of crop cycles. Many physical and technical relationships have to be represented even when analyzing a limited aspect of farm management. This work employs the net evapotranspiration (ETn) estimated with the EPIC model, as a synthetic index of the physical factors that the farmer considers in decisions on irrigation. The probability distribution of ETn is inserted into a territorial model of DSP that represents farm choices in conditions of uncertainty about water availability and irrigation requirements of crops. Recent trends of ETn suggest that the probability distribution of this variable may appreciably change in the near future. Also, water availability may become more variable due to changed rainfall. These modifications amplify uncertainty of management and, consequently, costs incurred by the farm typologies of the study area, which in many cases suffer an appreciable drop in income. |
| Keywords: | Discrete Stochastic Programming model, EPIC, climate change, Net Evapotranspiration, water availability, irrigation needs, Environmental Economics and Policy, Q54, |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa126:126099&r=env |
| By: | Djanibekov, Utkur; Djanibekov, Nodir; Khamzina, Asia |
| Abstract: | Rural livelihood in arid irrigated areas is hampered by water scarcity, land degradation and climate change. Studies showed a possibility to tackle these challenges by establishing tree plantations on marginal croplands as supported by the Clean Development Mechanism (CDM) forestation programs. Despite the environmental impact such projects would also affect the decision making of rural population by changing their land use activities, incomes and consumption structures. Thus, this study further analyzed the impact of CDM forestation on rural livelihood by considering rural interdependencies via wage-labor relations of agribusiness-operated farms and rural households in the Khorezm province and southern districts of Autonomous Republic of Karakalpakstan, Uzbekistan. We developed a farm-household dynamic programming model that jointly maximizes farm profits and rural households net incomes over a 15-years horizon under the scenario of decreasing irrigation water availability and plantation forestry with a seven year rotation period. The analysis showed that shortly following a land use change towards afforestation, the farm demand for rural households’ labor would decline thus decreasing the household incomes. Yet, later on after harvesting tree plantations, in year seven, the farm benefits would be transmitted to rural households via access to cheaper fuelwood and leaves as fodder, as well as via improved land use activities. The availability of fuelwood from tree plantations would significantly decrease CO2 emissions of households by substituting fossil fuels, while leaves would reduce expenditures for livestock fodder. These substitution effects would lead to the increase of income and in turn improve households’ food consumption. Besides, given the low irrigation demand of trees, a conversion of marginal cropland to tree plantations would increase the irrigation water availability for other productive croplands. These changes would lead that tree plantations would increase in year seven profits of farmer (up to 39,200 USD) and net incomes of rural households (up to 12,700 USD). Whereas when only conventional land uses are followed the decline in water availability would reduce profits of farm (from 13,000 USD to 9,850 USD) and net incomes of rural households (from 11,900 to 10,500 USD) over the modeled period. Overall, we argue that the implementation of the short-term CDM forestation could help cushion repercussions of water shortages on rural livelihoods, sustaining energy, income and food security, as well as mitigating climate change in drylands. |
| Keywords: | Sustainable rural development, dynamic farm-household model, short-rotation forestry, marginal croplands, Community/Rural/Urban Development, Consumer/Household Economics, Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126765&r=env |
| By: | Schroeder, Lilli A. |
| Abstract: | A better understanding of farmers' behaviour regarding agri-environment schemes (AES) can be one step towards further improving the schemes. To assess farmers' acceptance and perception of AES, the 'Theory of planned Behaviour' (TPB) was applied to identify factors influencing farmers' willingness to join AES. In a region in England, standardized face-to-face interviews were conducted with 32 farmers already participating in AES. The results show that the general attitude and acceptance of the scheme were high. Biodiversity, landscape, and natural resources were perceived to be improved by the scheme and to be valuable. An increase in weeds was perceived as an undesirable outcome. Farmers' families were ranked to have the highest and most positive social pressure on farmers' decisions to join AES. More paperwork and higher prescriptions would make it much more difficult to join the scheme. Environmental advice and generally more consideration of environmental conservation in policy were perceived to make the joining easier. |
| Keywords: | Agri-environment schemes, Theory of Planned Behaviour, Farmers' acceptance, Farmers' behaviour, Environmental Economics and Policy, Institutional and Behavioral Economics, Q57, Z1, |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa126:126032&r=env |
| By: | Schroeder, Lilli A. |
| Abstract: | A better understanding of farmers' behaviour regarding agri-environment schemes (AES) can be one step towards further improving the schemes. To assess farmers' acceptance and perception of AES, the 'Theory of planned Behaviour' (TPB) was applied to identify factors influencing farmers' willingness to join AES. In a region in England, standardized face-to-face interviews were conducted with 32 farmers already participating in AES. The results show that the general attitude and acceptance of the scheme were high. Biodiversity, landscape, and natural resources were perceived to be improved by the scheme and to be valuable. An increase in weeds was perceived as an undesirable outcome. Farmers' families were ranked to have the highest and most positive social pressure on farmers' decisions to join AES. More paperwork and higher prescriptions would make it much more difficult to join the scheme. Environmental advice and generally more consideration of environmental conservation in policy were perceived to make the joining easier. |
| Keywords: | Agri-environment schemes, Theory of Planned Behaviour, Farmers' acceptance, Farmers' behaviour, Environmental Economics and Policy, Institutional and Behavioral Economics, Q57, Z1, |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa126:126115&r=env |
| By: | Blanco, Maria; Van Doorslaer, Benjamin; Britz, Wolfgang |
| Abstract: | Irrigation water use by agriculture has been identified as one of the major sustainable water management issues in the implementation of the Water Framework Directive (WFD). This paper aims at developing a simulation framework to jointly assess agricultural and water issues. While the strong linkages between water, food, and the environment call for an integrated and multidisciplinary modelling approach, a complete and consistent modelling system to evaluate food-water relationships in Europe was missing so far. The spatial economic simulation model for agriculture CAPRI, which comprises a set of environmental indicators to assess food-environment interrelations within European regions, has been extended to account for food-water links. This modelling framework enables simulating the potential impact of climate change and water availability on agricultural production at the EU regional level, as well as looking at the sustainable use of water, the implementation of water policies or the integration of water issues in the Common Agricultural Policy. |
| Keywords: | agricultural policy, agro-economic modelling, food-water linkages, bioeconomy, Agricultural and Food Policy, Environmental Economics and Policy, C60, Q11, Q18, |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa126:126031&r=env |
| By: | Gernot Pehnelt (GlobEcon); Christoph Vietze (School of Economics and Business Administration, Friedrich-Schiller-University Jena) |
| Abstract: | During the last years, the renewable energy strategy of the European Union (EU) and the proposed policies and regulations, namely the Renewable Energy Directive (RED), have been heavily discussed among scientific circles and various interest groups. The sustainability of different biofuels and their contribution to the reduction of greenhouse gas (GHG) emissions and the whole renewable strategy has become one of the most controversial issues. RED requires that the greenhouse gas emissions associated with production and use of biofuels are at least 35% lower than those associated with the production and use of conventional fuels to be classified as 'sustainable' and therefore eligible for the mandatory blending scheme applied within the EU. In a recent working paper, we analyze the GHG emissions savings potential of rapeseed biodiesel. For this purpose, we ran a life cycle assessment of rapeseed biodiesel using the same basic methodology and background data contained in RED by considering the whole production chain from cultivation of the feedstock up to use of the biofuels. Unlike other studies, we refer only to publicly available and published data in our calculations. In order to ensure full transparency - again contrary to the vast majority of other studies - we provide a detailed documentation of all data. We follow a rather conservative approach by using average values and assuming common conditions along the supply chain in our scenarios. In most of the scenarios, rapeseed biodiesel does not reach the GHG emissions saving values using the formula contained in RED. Neither the RED typical value for rapeseed oil (45%) nor even the lower default value (38%) can be supported by the analysis. Furthermore, most of the scenarios indicate that rapeseed biodiesel does not reach the 35% threshold required by the EU Directive for being considered as sustainable biofuel. In the standard scenario, we calculate a GHG emissions saving value of not even 30% which is not only well below the GHG emissions saving values (default and typical) that can be found in RED but also far below the 35% threshold. To summarize, we are not able to reproduce the GHG emissions saving values published in the annex of RED. Therefore, the GHG emissions saving values of rapeseed biodiesel stated by the EU are more than questionable. Given these striking differences as well as the lack of transparency in the EU's calculations, we assume that the EU seems to prefer 'politically' achieved typical and default values regarding rapeseed biodiesel over scientifically proven ones. |
| Keywords: | Biofuel, Biodiesel, Rapeseed, Renewable Energy Directive, RED, Default Values, GHG emissions savings |
| JEL: | F18 K32 Q01 Q15 Q16 Q27 Q56 |
| Date: | 2012–07–11 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2012-039&r=env |
| By: | Huang, Jikun; Wang, Jinxia; Rozelle, Scott |
| Keywords: | Agricultural and Food Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126712&r=env |
| By: | Ibrahim Ahamada (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); Djamel Kirat (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: | This article considers the evidence for threshold effects in the relationship between electricity and emission permit prices in France and Germany during the second phase of the EU ETS. Specifically, we compare linear and nonlinear threshold models of electricity prices using Hansen's (2000) approach of sample splitting and threshold estimation. We find evidence of nonlinear threshold effects in both countries. The estimated carbon price thresholds are 14.94 € and 12.57 € in France and Germany, respectively. In Germany, the carbon price does not affect the electricity price below this threshold. In France, the price of emission allowances affects the cost of electricity generation only below the carbon-price threshold, thus revealing speculative behavior by French electricity producers on the carbon-allowance market. This is not the case for German electricity producers. |
| Keywords: | Carbon emission trading, energy prices, nonlinear threshold model. |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-00717629&r=env |
| By: | Ogada, Maurice Juma |
| Abstract: | This study investigates the factors that influence participation of households in devolved system of forest management by joining community forest associations (CFA). It further employs Propensity Score Matching (PSM) to measure the impact of household’s participation in CFA on farm forestry decisions. The analysis uses cross-sectional data from a survey of Kakamega forest communities in Kenya in 2010. Generally, our findings reveal that participation in CFA by households is influenced broadly by socio-economic and institutional factors, and that participation in CFA has a positive impact on farm forestry development. Policy makers and development practitioners, therefore, need to devise, implement and sufficient fund interventions that would promote development of community forest associations with the ultimate goal of increasing forest cover in the country. |
| Keywords: | Participatory Forest Management, Selection Bias, Farm Forestry Development, Kenya, Consumer/Household Economics, Environmental Economics and Policy, Farm Management, Institutional and Behavioral Economics, Resource /Energy Economics and Policy, Q12, Q28, D52, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126319&r=env |
| By: | Ibrahim Ahamada (Centre d'Economie de la Sorbonne - Paris School of Economics); Djamel Kirat (Centre d'Economie de la Sorbonne - Paris School of Economics) |
| Abstract: | This article considers the evidence for threshold effects in the relationship between electricity and emission permit prices in France and Germany during the second phase of the EU ETS. Specifically, we compare linear and nonlinear threshold models of electricity prices using Hansen's (2000) approach of sample splitting and threshold estimation. We find evidence of nonlinear threshold effects in both countries. The estimated carbon price thresholds are 14.94 € and 12.57 € in France and Germany, respectively. In Germany, the carbon price does not affect the electricity price below this threshold. In France, the price of emission allowances affects the cost of electricity generation only below the carbon-price threshold, thus revealing speculative behavior by French electricity producers on the carbon-allowance market. This is not the case for German electricity producers. |
| Keywords: | Carbon emission trading, energy prices, nonlinear threshold model. |
| JEL: | C13 C32 C51 Q49 Q58 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:12047&r=env |
| By: | Grovermann, Christian; Schreinemachers, Pepijn; Berger, Thomas |
| Abstract: | This study quantifies private and social levels of agricultural pesticide overuse by combining an abatement function approach to estimate the marginal benefits of pesticide use with the Pesticide Environmental Accounting (PEA) tool to estimate marginal social costs. We applied the method to one intensive vegetable production system in the mountainous north of Thailand by using farm and plot level survey data. We find that the exponential specification for the abatement effect of pesticides gives more realistic outcomes than the logistic specification. Based on an exponential specification, we estimate that private overuse is 78-79% of the applied quantify of pesticides, while social overuse is 79-80%. The difference between private and social overuse is small as the exponential form reaches an optimum at a relatively low level of pesticide use. |
| Keywords: | Damage control, Externality, Pesticide Environmental Accounting (PEA), Southeast Asia, Environmental Economics and Policy, Land Economics/Use, Production Economics, Productivity Analysis, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126341&r=env |
| By: | Wang, Jinxia; Huang, Jikun; Yang, Jun |
| Keywords: | Crop Production/Industries, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126714&r=env |
| By: | OECD |
| Abstract: | The report takes stock of the latest developments in the overall economic and social conditions in EECCA countries, market signals and environmental governance arrangements that may facilitate the shift towards green growth, and discusses possible barriers and measures to overcome them. At the same time, the report delineates the possible elements of a more coherent and effective reform agenda. In such a way the report aims to serve as background and a starting point for follow up development of green growth policies in EECCA. |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envddd:2012/2-en&r=env |
| By: | Sipilainen, Timo; Huhtala, Anni |
| Abstract: | Targeted environmental policies for farmlands may improve the cost-efficiency of conservation programs if one can identify those farms that produce public goods with the least cost. We derive shadow values of producing crop diversity for a sample of Finnish conventional and organic crop farms in the period 1994-2002 in order to examine their opportunity costs of conservation. Our results of Data Envelopment Analysis show that there is variation in the shadow values between farms and between the technologies adopted. The degree of cost heterogeneity and farms’ potential for specialization in the production of environmental outputs determine whether voluntary programs such as auctions for conservation payments are economically reasonable. |
| Keywords: | biodiversity, Shannon index, DEA, distance functions, shadow values, Finland, Crop Production/Industries, C21, D24, H41, Q12, Q24, |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126652&r=env |
| By: | Burtraw, Dallas (Resources for the Future); Palmer, Karen (Resources for the Future); Paul, Anthony (Resources for the Future); Woerman, Matt (Resources for the Future) |
| Abstract: | The confluence of several pending environmental rulemakings will require billions of dollars of investment across the industry and changes in the operation of facilities. These changes may lead to retirement of some facilities, and there has been much debate about their potential effects on electricity reliability. Only very exceptional circumstances would trigger supply disruptions; however, the changes may affect electricity prices, the generation mix, and industry revenues. Coincident with these new rules, expectations about natural gas prices and future electricity demand growth are changing in ways that also will have substantial effects on the industry. This paper addresses these two sets of issues using a detailed simulation model of the U.S. electricity market. The findings suggest that recent downward adjustments in natural gas prices and electricty demand projections have a substantially larger impact on electricity prices and generation mix than do the new environmental rules. |
| Keywords: | air pollution, electricity, regulation, equilibrium model |
| JEL: | Q41 Q52 Q58 |
| Date: | 2012–03–22 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-12-15&r=env |
| By: | Li, Yumin; Bai, Junfei; Wang, Jinxia; Qiu, Huanguang; Min, Shi |
| Abstract: | Applied a recently collected household data in 6 provinces in rural China, the purpose of this paper is to analyze solid waste disposal and its relationship with economic development in rural China. Domestic solid waste disposal per capita is about 1.07 kg/daily, or about 390 kg/year, and varies across regions and components. Major findings support the existence of the environmental Kuznets curves for domestic solid waste disposal with the estimated turning point of 17, 446 RMB per capita income. |
| Keywords: | Solid waste disposal, Per capita income, rural China, Environmental Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126426&r=env |
| By: | Ahtiainen, H.; Hasselstrom, L.; Artell, J.; Angeli, D.; Czajkowski, M.; Meyerhoff, J.; Alemu, M.; Dahlbo, K.; Fleming-Lehtinen, V.; Hasler, B.; Hyytiainen, K.; Karloseva, A.; Khaleeva, Y.; Maar, M.; Martinsen, L.; Nommann, T.; Oskolokaite, I.; Pakalniete, K.; Semeniene, D.; Smart, J.; Soderqvist, T. |
| Abstract: | One of the most serious threats to the Baltic Sea and its ecosystem services is human-induced eutrophication. European Union legislation, in the form of the Marine Strategy and Water Framework Directives, requires information on the benefits of improving the condition of the sea to a good environmental status. Our study uses a unique dataset collected from all nine littoral countries of the Baltic Sea, in combination with state-of-the-art marine modelling of the area, to estimate the benefits of reducing eutrophication in the Baltic Sea. We find average willingness to pay (WTP) for decreased eutrophication to differ substantially by country, but also that there is a general acceptance to pay more to improve the status of the whole sea area. We estimate the aggregate WTP for an improvement in the eutrophication level following the HELCOM Baltic Sea Action Plan (BSAP) to be 4000 million Euros annually. Our results provide, however, a strong message to the decision makers about the need for ensuring fulfilment of the policy targets in the BSAP. Failure to fulfil the targets would imply foregoing substantial societal benefits. |
| Keywords: | the Baltic Sea, contingent valuation, eutrophication, willingness to pay, Environmental Economics and Policy, Research Methods/ Statistical Methods, Q5, H4, |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:mttfdp:127123&r=env |
| By: | Li, Man; De Pinto, Alessandro; Ulimwengu, John M.; You, Liangzhi; Robertson, Richard D. |
| Abstract: | This paper develops an econometric model to explore the determinants of land use choices for the Democratic Republic of the Congo. The model is not just capable of representing land use choices using large aggregation categories, but it also allocates agricultural area to the country relevant crops by augmenting the dataset with low-cost, widely available, agricultural statistics about crop areas and production. This is important to decision makers who want to plan for economic growth while trying to minimize greenhouse gas emissions. An empirical application indicates that the implementation of an ongoing government’s plan for road construction in the country would cause a reduction of about 2% of the existing standing forest stock, and a loss in biological carbon stock estimated to be 294 TgC. Encroachment of agriculture into forested land would contribute to the reduction in biological carbon stock by an estimated 112 TgC and would generate annual emissions estimated to be 21 thousand Mg CO2e with low nitrogen application or 300 thousand Mg CO2e from high nitrogen application. |
| Keywords: | Land use, deforestation, crop allocation, road construction, greenhouse gas emissions, Community/Rural/Urban Development, Q15, Q24, Q54, |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126672&r=env |
| By: | Ciaian, Pavel; Kancs, d'Artis; Rajcaniova, Miroslava |
| Keywords: | Near-VAR, Energy, Bioenergy, Land use, Crude oil, Environmental Economics and Policy, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, Land Economics/Use, C14, C22, C51, D58, Q11, Q13, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126379&r=env |
| By: | Skidmore, Samuel; Santos, Paulo; Leimona, Beria |
| Abstract: | Reducing Emissions through Deforestation and Degradation (REDD) is one of the few interventions to mitigate global warming being pur- sued at a global scale. Its implementation requires knowledge of the willingness to accept land use change contracts and its eectiveness re- quires its application over large areas. In this paper we use data from Sumatra, Indonesia, to contrast two approaches to the elicitation of the supply curve for carbon sequestration: a reverse uniform auction and a budgetary analysis of opportunity costs. The analysis of the supply curves highlights that individual preferences, namely time and risk preferences, but not the opportunity costs, play a signicant role in determining the price villagers are willing to accept land use con- tracts that promote high carbon sequestration systems. The results also indicate that there are signicant gains from trade to be made through the implementation of this program, as the price requested by land users in the setting we study is much lower than current carbon prices. Finally, we analyse possible targeting techniques, concluding that a combination of geographic and self selection targeting would be the most ecient way to implement this policy. |
| Keywords: | Resource /Energy Economics and Policy, |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126688&r=env |
| By: | Kibonge, Aziza |
| Keywords: | Productivity Analysis, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126908&r=env |
| By: | Polyakov, Maksym; Pannell, David J.; Pandit, Ram; Tapsuwan, Sorada; Park, Geoff |
| Abstract: | Changing land-ownership patterns transform many rural landscapes from agricultural to multifunctional, which may have significant implications for land management and conservation policy. This paper presents a hedonic pricing model that quantifies the value of the remnant native vegetation captured by owners of rural lifestyle properties in rural Victoria, Australia. Remnant native vegetation has a positive but diminishing marginal implicit price. The value of lifestyle properties is maximized when their proportion of area occupied by native vegetation is about 40%. Most lifestyle landowners would receive benefits from increasing the area of native vegetation on their land. Findings from this study will be used to support decisions about ecological restoration on private lands in fragmented agriculture-dominated landscapes. |
| Keywords: | lifestyle landowners, remnant vegetation, amenity values, spatial hedonic model, Victoria, Environmental Economics and Policy, Land Economics/Use, Q57, Q15, |
| Date: | 2012–06–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uwauwp:126941&r=env |
| By: | Lehmann, Niklaus; Finger, Robert; Klein, Tommy; Calanca, Pierluigi; Walter, Achim |
| Keywords: | Crop Production/Industries, Production Economics, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126483&r=env |
| By: | Ciani, Adriano; Boggia, Antonio; Paolotti, L.; Rocchi, L. |
| Abstract: | Payments to the agricultural sector are designated to decrease gradually. One of the consequences of such a process will be a reduction in the number of farms and thereby in the defence of territory. The expansion of areas with hydro geological problems is a global matter. During the 2011 the damage caused by disasters around the world cost 380 BILIONS of USD. For the future, it is possible to suppose an increase in extreme events and disasters of hydro geological nature, also because of a reduction in territory protection by agriculture. The objective of this study is to propose an instrument to involve farmers in territory management, but before that disasters happen. We are looking for an ex-ante solution. In the paper, we propose a potential model, that of Territorial Management Contracts (TMC). |
| Keywords: | Territorial Management Contracts, Environmental protection, hydro geological risk, Community/Rural/Urban Development, Environmental Economics and Policy, Q01, Q15, Q28, |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa126:126052&r=env |
| By: | OECD |
| Abstract: | The greening of the labour market will create new opportunities for workers, but also new risks that could undermine political support for green growth policies. Accordingly, labour market and skills policy should also seek to maximise the benefits of green growth for workers while assuring that unavoidable adjustment costs are shared fairly. This report aims to provide guidance for how best labour market and skill development policy can contribute to a fast, efficient and fair transition to a low carbon and resource efficient economy, particularly in developed countries.<p> This paper represents the final OECD report for the European Commission project on “The jobs potential of a shift towards a low-carbon economy” (VS/2010/0618 – S12.576453). |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envddd:2012/1-en&r=env |
| By: | Trindade, Federico J. |
| Abstract: | Using linear programming data envelope analysis (DEA) I studied the impact that high temperatures have over the agricultural performance of counties in Nebraska. I have found that the incidence of high temperatures is no uniform for all the counties. There is an important negative incidence of temperatures over 32° Celsius during the growing season over agricultural performance on most counties, but for some counties this incidence is not significant. |
| Keywords: | Environmental Economics and Policy, Research Methods/ Statistical Methods, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126913&r=env |
| By: | Egbendewe-Mondzozo, Aklesso; Swinton, Scott M.; Izaurralde, R. Cesar; Manowitz, David H.; Zhang, Xuesong |
| Keywords: | Agricultural and Food Policy, |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126749&r=env |
| By: | David Wheeler, Dan Hammer, and Robin Kraft |
| Abstract: | This note introduces and illustrates fCPR (Forest Conservation Performance Rating), a system of color-coded ratings for tropical forest conservation performance that can be implemented for local areas, countries, regions, and the entire pan-tropics. The ratings reward tropical forest conservation in three dimensions: (1) exceeding expectations, given an area’s forest clearing history and development status; (2) meeting or exceeding global REDD+ goals; and (3) achieving an immediate reduction in forest clearing. We assign green ratings to areas that meet condition (2); yellow to areas that meet (1) only; and red to countries that fail to meet either condition. We have developed fCPR at the Center for Global Development (CGD), using monthly forest clearing indicators from CGD’s FORMA (Forest Monitoring for Action). This first release rates the quarterly conservation performance of 27 countries currently tracked by FORMA, as well as 242 of their states and provinces that contain tropical forests. The 27 countries accounted for 94 percent of tropical forest clearing during the period 2000–2005. Future releases will include additional countries as FORMA begins tracking them. |
| Keywords: | forests, conservation, satellite imagery |
| JEL: | Q20 Q23 Q27 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:cgd:wpaper:294&r=env |
| By: | Burtraw, Dallas (Resources for the Future); McLaughlin, David; Szambelan, Sarah Jo |
| Abstract: | California will enact an economy wide cap-and-trade program on CO2. Estimates of the value of tradable emissions allowances in the first year range from roughly $2.6 to $7.8 billion, when electricity and industry are covered under the program. Those sectors receive most of their allowances for free; electricity sector allowance value is directed to the benefit of ratepayers. In the first year a fraction of allowances, mostly with future year vintage, will be sold through an auction with a value of roughly $0.6 to $1.8 billion. That revenue will be returned to the California economy through appropriation by the legislature. Allowance auction revenue will grow five-fold in 2015 when transportation and natural gas are included. To whom does this revenue belong? This is the key unresolved issue in the design of the California program. |
| Keywords: | cap-and-trade, allocation, auction, Air Resources Board |
| JEL: | Q54 Q58 |
| Date: | 2012–05–21 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-12-23&r=env |
| By: | Cohen, Mark A. (Resources for the Future); Vandenbergh, Michael P. |
| Abstract: | Over the past several years, labeling schemes that focus on a wide range of environmental and social metrics have proliferated. Although little empirical evidence has been generated with respect to carbon footprint labels, much can be learned from our experience with similar product labels. We first review the theory and evidence on the influence of product labeling on consumer and firm behavior. Next, we consider the role of governments and nongovernmental organizations, concluding that global, multistakeholder organizations have a critical part to play in setting protocols and standards. We argue that it is important to consider the entire life cycle of a product being labeled and develop an international standard for measurement and reporting. Finally, we examine the potential impact of carbon product labeling, discussing methodological and trade challenges and proposing a framework for choosing products best suited for labeling. |
| Keywords: | carbon labels, voluntary disclosure, consumer behavior, life-cycle analysis, rebound effect, leakage |
| JEL: | D82 F18 K32 L15 M31 Q54 |
| Date: | 2012–04–17 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-12-09&r=env |
| By: | Ludena, Carlos E.; Mejia, Carla |
| Abstract: | This paper analyses the impacts of climate change of food processing sectors worldwide. Specifically, we analyze the impacts that changes in agricultural productivity might have for seven food industry sectors, namely meat, vegetable oils and fats, dairy, sugar, processed rice, other food products and beverage and tobacco products. We analyze two different scenarios of crops yield changes based on Müller et al. (2009), one with full CO2 fertilization and one without CO2 fertilization. We use a general equilibrium approach, given the advantages that this methodology provides for worldwide analysis of productivity and its impacts on production, trade and prices of primary agriculture, and ultimately, food processing sectors. We use the GTAP computable general model with version 7 of the GTAP database, with a base year of 2004. We aggregate this database into 10 regions and 12 sectors, with special emphasis on food processing sectors. The results show that overall, the impacts on food processing depends whether we consider CO2 fertilization or not. |
| Keywords: | Climate change, productivity, agriculture, food industry, Crop Production/Industries, Production Economics, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126851&r=env |
| By: | David Stern (The Australian National University (ANU) - Crawford School of Public Policy) |
| Abstract: | Ecological economics is a relatively new interdisciplinary field concerned with the relationship between economic systems and the biological and physical world. This article covers the following topics: A discussion of views on whether ecological economics is just a field or approach within economics or a new ÒtransdisciplinaryÓ field in its own right; Origin of the name of the field; Core common principles of ecological economics; Comparison with environmental economics; Applications; History and institutions of ecological economics. The core principles are that the economy is embedded and dependent upon the ecosphere and that, therefore, models of the economy have to comply with biophysical principles. Ecological economists believe that there are limits to our ability to substitute human-made inputs and knowledge for natural resources and the environment in both production and consumption. They also argue that economic policy must consider jointly the objectives of economic efficiency, equity, and sustainability. |
| JEL: | Q57 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:een:crwfrp:1203&r=env |
| By: | Derek M. Lemoine; Christian P. Traeger |
| Abstract: | We model welfare-maximizing policy in an infinite-horizon setting when the probability of a tipping point, the welfare change due to a tipping point, and knowledge about a tipping point's trigger all depend on the policy path. Analytic results demonstrate how optimal policy depends on the ability to affect both the probability of a tipping point and also welfare in a post-threshold world. Simulations with a numerical climate-economy model show that possible tipping points in the climate system increase the optimal near-term carbon tax by up to 45% in base case specifications. The resulting policy paths lower peak warming by up to 0.5°C compared to a model without possible tipping points. Different types of tipping points have qualitatively different effects on policy, demonstrating the importance of explicitly modeling tipping points' effects on system dynamics. Aversion to ambiguity in the threshold's distribution can amplify or dampen the effect of tipping points on optimal policy, but in our numerical model, ambiguity aversion increases the optimal carbon tax. |
| JEL: | C61 D81 D90 Q54 |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:18230&r=env |
| By: | Bekchanov, Maksud; Bhaduri, Anik; Lenzen, Manfred; Lamers, John P.A. |
| Abstract: | Increases in water demand due to population growth, industrial development and urbanization necessitate economically efficient use of water resources worldwide. This is particularly true in the dryland zones of the world relying on irrigated agriculture for economic development such as in Uzbekistan, Central Asia. Due to ill-managed water resources and the dominance of high water intensive crops, water use efficiency in the region is very low. This challenges Uzbekistan to modernize its agricultural sectors and develop its industrial sectors guided by the principles of a "green economy", which are the basis for sustainable growth. Therefore, this study aims to prioritize economic sectors according to their sustainable growth potential. To this end, we employ a national inputoutput model to estimate economic backward and forward linkage measures and virtual water contents across the sectors. Our results indicate that developing agro-processing industries and the livestock sector rather than relying on the production of raw agricultural commodities such as cotton, wheat, and rice provides more sustainable economic development in Uzbekistan. However, to exploit these comparative advantages, the necessary market infrastructure and institutions as well as an increased control over wastewaters would need to be implemented. |
| Keywords: | water productivity, input-output model, virtual water content, backward linkage index, forward linkage index, Aral Sea Basin, Agribusiness, Agricultural and Food Policy, Crop Production/Industries, Environmental Economics and Policy, Farm Management, Land Economics/Use, Livestock Production/Industries, Resource /Energy Economics and Policy, |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ubzefd:126872&r=env |
| By: | Cropper, Maureen (Resources for the Future); Gamkhar, Shama; Malik, Kabir; Limonov, Alex; Partridge, Ian |
| Abstract: | To help inform pollution control policies in the Indian electricity sector we estimate the health damages associated with particulate matter, sulfur dioxide (SO2), and nitrogen oxides (NOx) from individual coal-fired power plants. We calculate the damages per ton of pollutant for each of 89 plants and compute total damages in 2008, by pollutant, for 63 plants. We estimate health damages by combining data on power plant emissions of particulate matter, SO2 and NOx with reduced-form intake fraction models that link emissions to changes in population-weighted ambient concentrations of fine particles. Concentration-response functions for fine particles from Pope et al. (2002) are used to estimate premature cardiopulmonary deaths associated with air emissions for persons 30 and older. Our results suggest that 75 percent of premature deaths are associated with fine particles that result from SO2 emissions. After characterizing the distribution of premature mortality across plants we calculate the health benefits and cost-per-life saved of the flue-gas desulfurization unit installed at the Dahanu power plant in Maharashtra and the health benefits of coal washing at the Rihand power plant in Uttar Pradesh. |
| Keywords: | coal-fired power plants, particulate matter, electricity, health damages, pollution control, concentration-response function, India |
| JEL: | Q01 Q51 |
| Date: | 2012–06–26 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-12-25&r=env |
| By: | Cardillo, Concetta; Cimino, Orlando; Henke, Roberto; Vanni, Francesco |
| Abstract: | The recent CAP reform proposes a green component of the first pillar of the CAP that remunerates farmers for the provision of environmental public goods, by conditioning the 30% of direct payments to specific requirements. The paper focuses on two of the greening obligations of the reform proposal: the diversification of crops and the establishment of the ecological focus areas. The paper, through FADN data, aims at quantifying the impact of these measures on the gross margin (GM) of farms specialized in arable crops in Italy. The results show different impacts of the green payments on arable crops in Italy according to the characteristics of farms, their location and their economic and physical size, showing data the greening is an “horizontal measure” that does not take into adequate account the specific conditions where farmers operate and the different costs of providing public goods through agriculture. |
| Keywords: | The recent CAP reform proposes a green component of the first pillar of the CAP that remunerates farmers for the provision of environmental public goods, by conditioning the 30% of direct payments to specific requirements. The paper focuses on two of the greening obligations of the reform proposal: the diversification of crops and the establishment of the ecological focus areas. The paper, through FADN data, aims at quantifying the impact of these measures on the gross margin (GM) of farms specialized in arable crops in Italy. The results show different impacts of the green payments on arable crops in Italy according to the characteristics of farms, their location and their economic and physical size, showing data the greening is an “horizontal measure” that does not take into adequate account the specific conditions where farmers operate and the different costs of providing public goods through agriculture., Agricultural and Food Policy, Environmental Economics and Policy, Q15, Q18, |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa126:126139&r=env |
| By: | Okello, Julius Juma; Lagerkvist, Carl Johan; Ngigi, Marther W.; Karanja, Nancy |
| Abstract: | Peri-urban areas play a major role in the supply of vegetables consumed in urban areas. In order to meet high demand for aesthetic quality characteristics, peri-urban farmers use intensive production practices characterized by use external inputs. This paper uses Means-End Chain analysis approach to examine the role farmers’ personal values play in the decision to use soil fertility improvement inputs namely, animal manures (organic fertilizer) and inorganic fertilizers. It found that use of animal manures and inorganic fertilizers was driven by the need to earn higher profit margins thus making more money in order to meet family needs. This in turn met farmers’ personal values relating to, among others, happiness, leading a comfortable life, independence and healthy life. The major implication of these findings was that farmers’ private goals could, with the urging of the market that demands unique aesthetic quality characteristics, promote intensive applications of both the organic and inorganic inputs with potential negative environmental consequences. |
| Keywords: | Peri-urban vegetable farmers, manure and fertilizer use, personal values, means-end chain approach, Agricultural and Food Policy, Environmental Economics and Policy, Production Economics, Research Methods/ Statistical Methods, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126805&r=env |
| By: | Halkos, George |
| Abstract: | This paper examines the impact of government spending on the environment using a panel of 77 countries for the time period 1980-2000. We estimate both the direct effect of government spending on pollution and the indirect effect which operates through government spending impact on per capita income and the subsequent effect of income level on pollution. In order to take into account the dynamic nature of the relationships examined, appropriate econometric methods are used. For both sulfur dioxide and carbon dioxide, government spending is estimated to have a negative direct impact on per capita emissions. The indirect effect on sulfur dioxide is found to be negative for low levels of income and then becomes positive as income level increases, while it remains negative for carbon dioxide for the whole income range of the sample. The resultant total effects follow the patterns of the indirect effects, which dominate their respective direct ones for each pollutant. Policy implications, occurring from the paper’s results, range according to the level of income of the considered countries. |
| Keywords: | Government expenditure; environment; direct and indirect effects |
| JEL: | Q56 Q53 Q54 E60 |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:39957&r=env |
| By: | Huang, Kaixing; Wang, Jinxia; Bai, Junfei; Qiu, Huanguang |
| Abstract: | The purpose of this paper is to make a quantitative analysis of the rural domestic solid wastes discharge volume, structure and Determinants. The data comes from one large field survey in 6 provinces in China, The results show that, in 2010, the discharge volume of rural domestic solid wastes was 236 million tons. Policy factors and socio-economic conditions significantly influence the discharge volume of rural domestic solid waste. The implementation of certain policies can significantly reduce the discharge volume. The relationship between discharge volume and income per capita shows an obvious inverted U-shaped curve. |
| Keywords: | Domestic solid waste discharge, Determinants, Rural China, Community/Rural/Urban Development, Environmental Economics and Policy, |
| Date: | 2012–08–19 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126438&r=env |
| By: | Marenya, Paswel Phiri; Nkonya, Ephraim M.; Xiong, Wei; Rossel, Jose Deustua; Edward, Kato |
| Abstract: | Why do many smallholder farmers fail to adopt improved land-use practices which can improve yields and incomes? The reason is not always because these practices are uneconomical but sometimes it is because resource poverty prevents farmers from taking advantage of yield and income enhancing agricultural practices. In this study we examine the relative merits of using a carbon payment scheme compared to a subsidy policy to help reduce the cost of specific best management practices (BMPs) with productivity and ecosystem benefits. Using a 30-year crop simulation model, we examine the impacts of different soil fertility management treatments (SFTs) on yields and soil carbon and proceed to compute discounted incremental revenue streams over the same period. We find that the SFTs simulated are on average profitable given the conditions assumed in the DSSAT simulations and subsequent net present value analysis and revenue-cost comparisons. When carbon was priced at $8 or $12/t, the increase in incremental incomes generated from a carbon payment were higher than those imputed from a 50% fertilizer subsidy. When carbon was priced at $4/t, the increase was almost always equal and sometimes higher than that from the imputed income transfer from a 50% subsidy. If these indications hold in further research, it could imply that using fertilizer subsidies as the sole mechanism for stimulating adoption of improved soil fertility management practices may unnecessarily forgo other complementary and possibly superior alternatives. Given the fiscal burden on public finances and unavoidable opportunity costs of any substantial subsidy program, it is possible that a carbon payment system is a reasonable alternative even at low carbon prices especially if accompanied by measures to ameliorate the costs of fertilizer to farmers. |
| Keywords: | fertilizer subsidy, carbon payments, sub-Saharan Africa, Farm Management, International Development, Land Economics/Use, Research and Development/Tech Change/Emerging Technologies, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126904&r=env |
| By: | Sebastian Miller; Bok-Keun Yu |
| Abstract: | Mobilizing sufficient resources is essential for supporting environmental activities in developing countries, and cofinancing is generally considered an important tool to help developing countries increase the resources they need. Moreover, cofinancing should increase ownership of projects by local authorities while improving accountability. The literature, however, has not explored why certain projects receive higher levels of cofinancing than others. This paper attempts to fill this gap by examining the cofinancing ratio and its determinants using projects financed by the GEF Trust Fund. The empirical results confirm that the rules of the fund, requiring different minimum cofinancing ratios by size and focal area of the GEF projects, do matter. Other important factors include funds’ origins (foreign vs. domestic), types of cofinancing sources (reimbursable vs. non- reimbursable) and the particular GEF agencies involved. |
| JEL: | F30 G20 Q50 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:idb:wpaper:4780&r=env |
| By: | Deppermann, Andre; Bruchof, David; Blesl, Markus; Boysen, Ole; Grethe, Harald |
| Abstract: | Over the last decades traditional energy sources are increasingly replaced by energy from biomass and this trend is expected to continue into the future. Assessing the efficiency of bioenergy policies requires a comprehensive analysis of the interrelationship between agricultural and energy markets. This study analyzes the impacts of two alternative EU greenhouse gas emission mitigation scenarios on the utilization of biomass for energy production and the price of agricultural products. To this end, we combine the energy system model TIMES PanEU and the agricultural sector model ESIM. We establish a consistent interface between the models and run them in an iterative procedure where TIMES PanEU represents the demand side for energy crops and ESIM their supply side. According to our results, an extension of the mandatory reduction of emissions has strong biomass demand effects and affects the agricultural sector in its entirety. Due to the increased demand for energy crops, average crop prices in the EU increase by an estimated 30 percentage points in 2050. The expanded area use for production of energy crops inside the EU27 turns the EU from being a net exporter to a net importer for many important agricultural commodities. |
| Keywords: | Biomass, bioenergy, energy system model, agricultural sector model., International Relations/Trade, Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126754&r=env |
| By: | Vagliasindi, Maria |
| Abstract: | This paper presents new global evidence on the key determinants of public-private partnership investment in electricity generated by renewable energy based on a panel data analysis for 105 developing countries over a period of 16 years from 1993 to 2008. It aims to identify the key factors affecting the private investor's decision to enter renewable-based energy generation, through a probit analysis and the amount of investment sunk in this market segment, based on Heckman's sample selection analysis. One of the key results of the paper is that the market for renewable-based energy is strongly driven by supportive policies. Support policies serve not only to attract the entry of private investors, but also to determine the level of investment. In the latter case, its impact is less significant, suggesting the need over time to revisit the power of the incentive schemes, as well as the implied allocation of risks between the public and private sector to ensure that feed-in tariffs produce the desired amount of investment. In contrast, broader economy-wide governance factors, including control for corruption and degree of political competition, are considered by private investors mainly for taking the decision to enter into renewable-based generation. This reinforces the expectation that private investors seem to be adequately protected against their risks, so that once they have entered the market, they can accommodate the governance environment. Private investors in renewable-based energy also require technical and regulatory certainty about the availability of renewable-ready transmission resources, if they are to finance investments. Private investors entering the market look more at the size of the market rather than the income level, whereas when determining the level of investment they assess both the size and"affordability"level. This raises some concerns on the sustainability of support mechanisms and their financing, particularly when the incremental costs implied by renewable-based generation are passed through to consumers. |
| Keywords: | Energy Production and Transportation,Energy Demand,Emerging Markets,Climate Change Mitigation and Green House Gases,Debt Markets |
| Date: | 2012–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6120&r=env |
| By: | Ben Fradj, Nosra; Aghajanzadeh-Darzi, Parisa; Jayet, Pierre-Alain |
| Abstract: | The aim of this paper is to estimate the perennial crop potential regarding new uses like second generation biofuels. We focus on the introduction of a perennial yearly harvested crop, namely the miscanthus, in European agricultural short term supply model - AROPAj. Inserting this crop in the model requires the determination of two elements: a) the yield growth function which is calibrated and based on the few available data and adjusted to the yield of traditional crops, and b) the discounted cost, which is calculated through the "Faustmann" rule used in the case of a perennial yearly harvested crop. We estimate ?rst the potential yield of miscanthus at the subregional level (i.e. the "farm group? level), and we parametrize the potential rate for simulations. The analysis covers a large part of the European Union and provides a land use change assessment estimated when the miscanthus yield potential varies. The model appears to be able to capture some complex land use change involving croplands and grasslands when a perennial competitive crop is introduced, beyond the usual competition between food crops and energy crops. The major result is summarized by the common evolution of substitution of croplands and grasslands by the perennial crop when its potential increases. |
| Keywords: | Bio-economic model, mathematical linear programming, European Union, perennial bioenergy crops, grasslands, croplands, land use change., Environmental Economics and Policy, Food Consumption/Nutrition/Food Safety, Land Economics/Use, Livestock Production/Industries, Production Economics, Resource /Energy Economics and Policy, |
| Date: | 2012–06–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126781&r=env |
| By: | Nhu Che; Tom Kompas; Vilaphonh Xayavong; David Cook |
| Abstract: | This paper analyses productivity, profitability and efficiency by climate zone for the WA grains industry over the past 30 years. More specifically, following the studies by the Department of Agriculture and Food of Western Australia (2011) and Che, et.al (2012), this paper uses the Törnqvist formula index to measure and analyse movements in inputs, outputs, climate conditions, Total Factor Productivity (TFP), and TFP adjusted by climate impacts for WA grains farms in six climate zones over the period 1980 to 2009-10. Estimates provide a stochastic production frontier and technical efficiency model for six rainfall zones (including the High Rainfall North and South zones; the Medium Rainfall North and South zones and Low Rainfall North and South zones), which determine the relative importance of land, labour, capital, materials, fuel and energy inputs into wheat production and the effects of climate zone on farm efficiency. A construction of overall farm profiles in Medium Rainfall zones based on the efficiency rankings of grain farms is also generated. |
| Keywords: | productivity, profitability, Western Australia, efficiency, climate impacts, grain production |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:een:crwfrp:1208&r=env |