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on Environmental Economics |
| By: | Tee, James; Scarpa, Riccardo; Marsh, Dan; Guthrie, Graeme |
| Abstract: | Under the New Zealand Emissions Trading Scheme, forests planted on or after 1st January 1990 earn carbon credits. These credits have to be repaid when the forest is harvested. This paper analyses the effects of this scheme on the value of bareland on which radiata pine is to be planted. A real options method is developed and applied, assuming stochastic carbon and timber prices. We find that land value increases by about 73%, with the rotation age lengthened. The optimal harvest price thresholds are useful in deciding whether to harvest or to wait. |
| Keywords: | Emissions Trading Scheme (ETS), Climate change policy, Kyoto Protocol, Real options, carbon forestry, tradable permits, Environmental Economics and Policy, Land Economics/Use, Q23, Q28, Q54, |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:131066&r=env |
| By: | Osteen, Craig D.; Vasavada, Utpal |
| Abstract: | Agricultural Resources and Environmental Indicators, 2012, describes trends in economic, structural, resource, and environmental indicators in the agriculture sector, focusing on changes since the release of Agricultural Resources and Environmental Indicators, 2006. These indicators are useful to assess important changes in U.S. agriculture—the industry’s development; its environmental effects; and the implications for economic, social, and environmental sustainability. This report tracks key resources, including natural, produced, and management resources, that are used in and affected by agricultural production, as well as structural changes in farm production and the economic conditions and policies that influence agricultural resource use and its environmental impacts. Each chapter provides a concise overview of a specific topic with links to sources of additional information. |
| Keywords: | Agricultural biotechnology, conservation policy, conservation programs, farm types, fertilizer use, land use, land values, organic production, pest management, productivity, research and development, soil management, water use., Environmental Economics and Policy, Farm Management, Resource /Energy Economics and Policy, |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uersib:132048&r=env |
| By: | Richard S.J. Tol (Department of Economics, University of Sussex, UK; Institute for Environmental Studies, Department of Spatial Economics, Vrije Universiteit, Amsterdam, The Netherlands) |
| Abstract: | A survey of the economic impact of climate change and the marginal damage costs shows that carbon dioxide emissions are a negative externality. The estimated Pigou tax and its growth rate are too low to justify the climate policy targets set by political leaders. A lower discount rate or greater concern for the global distribution of income would justify more stringent climate policy, but would imply an overhaul of other public policy. Catastrophic risk justifies more stringent climate policy, but only to a limited extent. |
| Keywords: | climate change; climate policy; first-best |
| JEL: | Q54 Q58 |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susewp:3712&r=env |
| By: | Sushama Murty (Department of Economics, University of Exeter) |
| Abstract: | A by-production-cum-preference based approach is adopted to study the relation between national income and environmental quality under non-cooperative behaviour. While emission is an inferior good for richly endowed economies, it is a normal good for the developing economies. With increases in endowments, the marginal willingness to pay declines (respectively, increases) in the set of poorly (respectively, richly) endowed economies. Hence, for emissions, the income and substitution effects work in opposite directions. Abatement strategies include cleaning-up; decreases in and substitution between fuels of varying costs, emission, and energy intensities; and the diversion of capital from fuel-intensive to non-fuel intensive uses. Poorly (respectively, richly) endowed economies are characterized by weak (respectively, strong) environmental policies. Consequently, deteriorating abatement practices are adopted by the developing economies. The shape of the income-environmental quality graph depends on the relative strengths of income and substitution effects and the set of available abatement strategies. Both inverted U and N-shaped environmental Kuznets curves are possible. The latter arises due to stronger substitution effects and lower opportunity costs of fuel-intensive capital in the more richer of the richest economies. |
| Keywords: | environmental Kuznets curve, income and substitution effects, inferior good, normal good, by-production of emissions, returns to scale, abatement, inter-fuel substitution. |
| JEL: | Q50 Q56 O12 O13 D62 H23 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:exe:wpaper:1203&r=env |
| By: | Richardson, Nathan (Resources for the Future) |
| Abstract: | This paper explores the policy options available to the United States for regulating greenhouse gas emissions from aircraft under existing law: the Clean Air Act (CAA). Europe has unilaterally and controversially moved to include aviation emissions in its Emissions Trading System. The United States can, however, allow its airlines to escape this requirement by imposing “equivalent” regulation. U.S. aviation emissions rules could also have significant environmental benefits and would limit domestic emissions beyond the reach of the European Union. With new legislation unlikely, the CAA is the only plausible vehicle for such regulation. Title II Part B of the CAA does grant EPA broad regulatory authority over aviation emissions, though this authority has not been used aggressively. EPA could impose meaningful aviation GHG limits and, by using performance standards, give airlines incentives to creatively comply. It might further be possible to allow some forms of emissions trading, though the law is unclear. Emissions by foreign airlines in the United States could be covered under the act, though international law might impose barriers. |
| Keywords: | Clean Air Act, aviation, aircraft, carbon, emissions, GHGs, European Union, trading, flexibility |
| Date: | 2012–07–24 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-12-22&r=env |
| By: | Sweder van Wijnbergen (University of Amsterdam); Tim Willems (Oxford University) |
| Abstract: | Climate skeptics argue that the possibility that global warming is exogenous implies that we should not take additional action towards reducing greenhouse gas emissions until we know more. However this paper shows that even climate skeptics have an incentive to reduce emissions: such a change of direction facilitates their learning process on the causes of global warming. Since the optimal policy action depends on these causes, they are valuable to know. Although an increase in emissions would also ease learning, that option is shown to be inferior because emitting greenhouse gases is irreversible. Consequently the policy implications of the different positions in the global warming debate turn out to coincide - thereby diminishing the relevance of this debate from a policy perspective. Uncertainty is no reason for inaction. |
| Keywords: | climate policy; global warming; climate skepticism; active learning; irreversibilities |
| JEL: | D83 Q54 Q58 |
| Date: | 2012–08–20 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20120085&r=env |
| By: | Rubin, Edward A.; Hunter-Pirtle, Ann K. |
| Keywords: | Irrigation, Climate, Water Levels, U.S. High Plains Aquifer, Ogallala Aquifer, Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:131182&r=env |
| By: | Kögel, Tomas |
| Abstract: | This paper derives the social cost of carbon (SCC) and its rate of change. It does so in a deterministic Ramsey model of optimal economic growth with carbon emissions from burning fossil fuels. It is shown that the determinants of the rate of change of the SCC are substantially almost identical to the determinants in the social planner's Hotelling rule if a unit of fossil fuel use leads to exactly one unit of carbon emission, while otherwise these formulas differ substantially. As is also shown in this paper, in the special case in which the two formulas are substantially almost identical, a Pigovian tax on fossil fuel use and a Pigovian tax on carbon emissions are both equal to the SCC, while otherwise only a Pigovian tax on carbon emissions equals the SCC. -- |
| Keywords: | climate change,social cost of carbon |
| JEL: | D61 Q54 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwedp:201237&r=env |
| By: | Fernando Broner; Paula Bustos; Vasco M. Carvalho |
| Abstract: | We study the determinants of comparative advantage in polluting industries. We combine data on environmental policy at the country level with data on pollution intensity at the industry level to show that countries with laxer environmental regulation have a comparative advantage in polluting industries. Further, we address the potential problem of reverse causality. We propose an instrument for environmental regulation based on meteorological determinants of pollution dispersion identified by the atmospheric pollution literature. We find that the effect of environmental regulation on the pattern of trade is causal and comparable in magnitude to the effect of physical and human capital. |
| JEL: | F11 F18 Q53 Q56 |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:18337&r=env |
| By: | Ahlheim, Michael; Börger, Tobias; Frör, Oliver |
| Abstract: | The cultivation of rubber trees in Xishuangbanna Prefecture in China's Yunnan Province has triggered an unprecedented economic development but it is also associated with severe environmental problems. Rubber plantations are encroaching the indigenous rainforests at a large scale and a high speed in Xishuangbanna. Many rare plant and animal species are endangered by this development, the natural water management is disturbed and even the microclimate in this region has changed over the past years. The present study aims at an assessment of these environmental costs of the economic progress in Xishuangbanna. To this end a Contingent Valuation survey is conducted to elicit local residents' willingness to pay for a reforestation program that converts existing rubber plantations back into forest. It is shown that though local people's awareness of the environmental problems caused by increasing rubber plantation is quite high their willingness to pay in order to change things is rather low. It seems that from the perspective of local residents the economic advantages of rubber cultivation outweigh the resulting environmental threats. Another explanation of the low willingness to pay stated in this survey might be the fact that many respondents consider taxes and fees already too high in China so that they are not willing to make any further contributions to whatever purpose. -- |
| Keywords: | rubber cultivation,deforestation,contingent valuation method,environmental costs,China |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fziddp:552012&r=env |
| By: | Sarah L. Stafford (Department of Economics, College of William and Mary) |
| Date: | 2012–08–26 |
| URL: | http://d.repec.org/n?u=RePEc:cwm:wpaper:123&r=env |
| By: | Malgorzata Ogonowska (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université de Nice Sophia Antipolis (UNS)); Dominique Torre (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université de Nice Sophia Antipolis (UNS)) |
| Abstract: | Since 1990s environmental protection and awareness became major issues. Consumers are more and more aware of environmental issues and conscious of existing pollution caused by mass tourism. Consequently a new segment of demand desiring sustainable tourism products have appeared, enhancing service providers to offer this type of products. This paper analyzes the evolution of service provider's offer adapting to demand preferences modification. Using a theoretical framework, it explains how environmental quality standards can become general norms in tourism industry. By analyzing a case of monopoly and duopoly, it considers different possible frameworks and strategic choices that may be implemented by the incumbent. Though, it explains the role of industry in the emergence of the new environmental norms. |
| Keywords: | Economics of Tourism, tourism products' distribution, sustainable tourism, branding policies, environmental norms. |
| Date: | 2012–06–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00726127&r=env |
| By: | Peter S. Schmidt (University Zurich, Switzerland); Therese Werner (ETH Zurich, Switzerland) |
| Abstract: | This study examines the relation of stock returns and the announcements on verified emissions in the European Emission Trading Scheme (EU ETS). In a first step we employ event study methods to detect possibly abnormal returns on the respective announcement dates using a sample of quoted stock market firms from Austria, Denmark, Germany and the UK. In a second step we link the estimated abnormal returns to firm characteristics based on the EU ETS (such as verified emissions or over-allocation) as well as to financial firm level data in a cross-sectional analysis. Even though the overall cost from the new regulation on the individual firms was minor, we find evidence for the asset value hypothesis, which states that higher verified emissions induce a higher future permit allocation. This suggests that investors did not perceive the EU ETS in its first set-up as an efficient and effective environmental policy instrument. |
| Keywords: | Event study; European emission trading scheme; Regulation; Verified Emissions; Emission trade |
| JEL: | G14 Q48 Q52 |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:12-165&r=env |
| By: | Klier, Thomas; Linn, Joshua (Resources for the Future) |
| Abstract: | France, Germany, and Sweden link vehicle taxes to the carbon dioxide (CO2) emissions rates of passenger vehicles. Based on new vehicle registration data from 2005–2010, a vehicle’s tax is negatively correlated with its registrations. The effect is somewhat stronger in France than in Germany and Sweden. Taking advantage of the theoretical equivalence between an emissions rate standard and a CO2-based emissions rate tax, we estimate the effect on manufacturers’ profits of reducing emissions rates. For France, a decrease of 5 grams of CO2 per kilometer reduces profits by 24 euros per vehicle. We find considerable heterogeneity across manufactures and countries. |
| Keywords: | feebate, fuel economy standards, emissions rate standards |
| JEL: | L62 Q54 |
| Date: | 2012–08–13 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-12-34&r=env |
| By: | Jesús Antón; Shingo Kimura; Jussi Lankoski; Andrea Cattaneo |
| Abstract: | Climate change affects the mean and variability of weather conditions and the frequency of extreme events, which to a great extent determines the variability of production and yields. This paper reviews the scientific literature on the impacts of climate change on yield variance and investigates their implications for the demand of crop insurance and effectiveness of different farm strategies and policy measures using crop farm data in Australia, Canada and Spain. A microeconomic farm level model is calibrated to different types of farms and used to simulate the responses and impacts of four policy measures: ex post disaster payments and three types of crop insurance (individual yields, area-based yield and weather index). The strong uncertainties about climate change are captured in a set of seven scenarios covering different assumptions about the scope of climate change (no change, marginal change, and high occurrence of extreme events), and farmers’ adaptation response (no adaptation, diversification, and structural adaptation). Policy decision making under these uncertainties is analysed using a standard Bayesian probabilistic approach, but also using other criteria that look for robust second best choices (MaxiMin and Satisficing criteria). |
| Keywords: | uncertainty, climate change, adaptation, Crop insurance, second best policies |
| JEL: | D81 G22 Q18 Q54 |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:oec:agraaa:58-en&r=env |
| By: | Hepburn, C.J.; Quah, J.K.-H.; Ritz, R.A. |
| Abstract: | This paper examines the impact of an emissions trading scheme (ETS) on equilibrium emissions, output, price, market concentration, and profits in a generalized Cournot model. We develop formulae for the number of emissions permits that have to be freely allocated to firms to neutralize the profit impact of the ETS. We show that its profit impact is usually limited: in a Cournot oligopoly with constant marginal costs, total industry profits are preserved so long as freely allocated permits cover a fraction of initial emissions that does not exceed the industry's Herfindahl index. |
| Keywords: | Cap-and-trade, permit allocation, profit-neutrality, cost pass-through, abatement, grandfathering |
| JEL: | D43 H23 Q58 |
| Date: | 2012–08–17 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:1235&r=env |
| By: | Mary F. Evans (The Robert Day School of Economics and Finance, Claremont McKenna College); Lirong Liu (Department of Economics and International Business, Sam Houston State University); Sarah L. Stafford (Department of Economics, College of William and Mary) |
| Abstract: | We explore how limits to our insight on the underlying decision-making structure of regulated entities may affect the conclusions we draw about the likely impacts of environmental policies, with a focus on environmental auditing. We examine the conditions under which a multi-facility firm chooses to adopt a standardized auditing. Our firm-level empirical analysis confirms that a uniform auditing outcome is less likely among firms (1) with a more heterogeneous portfolio of facilities, and (2) that are less likely to make decision errors. We examine the implications of adding controls for firm decision-making structure in a facility-level empirical analysis of auditing’s impact on compliance. Our results suggest that the estimated compliance impact of auditing varies depending on whether or not we include these controls. |
| Date: | 2012–08–25 |
| URL: | http://d.repec.org/n?u=RePEc:cwm:wpaper:124&r=env |
| By: | Schallaböck, Karl Otto; Carpantier, Rike; Fischedick, Manfred; Ritthoff, Michael; Wilke, Georg; Bauhaus, Wencke; Schröder, Sebastian |
| Abstract: | Im Zentrum dieser Untersuchung steht die Aufbereitung der Erfahrungen mit den Elektrofahrzeugen in Einzelprojekten der Modellregionen Phase I hinsichtlich der energiebezogenen Parameter und der nach Fahrzeugsegmenten differenzierte Vergleich mit herkömmlichen Fahrzeugen. In der Literatur finden sich für die Klimabilanz von Elektrofahrzeugen unterschiedliche Bewertungsmethoden, deren Ergebnisse kurzfristig stark streuen und sich erst mittel- bis längerfristig perspektivisch annähern. In der vorliegenden Untersuchung werden drei Varianten zur Bilanzierung der klimarelevanten Emissionen gerechnet: a) Werden Elektrofahrzeuge mit Strom aus erneuerbaren Energien betrieben, ist ihre Klimabilanz deutlich besser als diejenige fossil betriebener Pkw. Wann, inwieweit und unter welchen Voraussetzungen (Herkunftsnachweis) eine direkte Zuordnung des Fahrstroms zu einer Stromerzeugung aus erneuerbaren Energien möglich ist, ist heute allerdings umstritten. b) Unter pragmatischen Gesichtspunkten bietet die Strommixmethode eine gute Orientierung für die klimabezogene Bewertung von Elektrofahrzeugen. Aufgrund der auf der Zeitachse planungsgemäß zunehmenden Anteile erneuerbarer Energien im Strommix führt dies für die Zeiten, in denen eine signifikante Durchdringung mit Elektrofahrzeugen zu erwarten ist, zu einer gegenüber heute deutlichen Verbesserung der spezifischen CO2-Emissionen und respektive Vorteilen gegenüber mit fossilen Kraftstoffen betriebenen Fahrzeugen. c) Legt man dem Kraftwerkseinsatz Merit Order als Regel des ökonomischen Betriebs zugrunde und betrachtet den Stromverbrauch von Elektrofahrzeugen als zusätzlichen Verbrauch gegenüber einem Zustand ohne Elektrofahrzeuge, stellt sich die Klimabilanz nicht so günstig dar. -- This study focuses on the analysis of experiences with electric vehicles within several single projects of the model regions programme, part 1. Main issues are terms of energy-related parameters and the comparison with conventional vehicles (differentiated according to vehicles segments). There are various methods of estimating the carbon footprint of electric vehicles in literature. In short-time considerations their results scatter, but perspectively at middle- and long-time considerations they converge. The present study respects three variations of calculating the climate-relevant emissions: a) If electric vehicles are operated from renewable energy sources, their carbon footprint is significant better than fossil fuel cars. When, how and on what conditions (proof of origin) a direct correlation of the driving-energy to a power generation from renewable energies is possible, is currently in discussion. b) Under pragmatic aspects the energy-mix-method offers a good guide to a climate-related assessment of electric vehicles. Due to the planned growth of the ratio of renewable energies in the electricity mix according to the time-axis, this leads, in times where a significant penetration supply of electric vehicles is expected, to a serious improvement of specific CO2-emissions compared to today. So electric vehicles might have benefits in contrast to vehicles with internal combustion engines. c) If one takes the merit order rule as a basis for the economic power plant operation and considers the power consumption of electric vehicles as an additional consumption compared to a state without electric vehicles, the carbon footprint is not that convenient anymore. |
| Keywords: | Elektromobilität,Klimabilanz,Elektro-Pkw,Strommix,CO2-Emissionen,Klimalasten,Energieverbrauch,LCA,Vergleichsfahrzeuge,electric mobility,carbon footprint,electric vehicles,electric passenger cars,electricity mix,CO2-emissions,climate loads,energy consumption,LCA,reference vehicles |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:wuprep:6&r=env |
| By: | Timilsina Raja Rajendra (ISFnet Inc.); Koji Kotani (International University of University) |
| Abstract: | A new paradigm in natural resource management has moved towards more decentralized mechanisms to reverse the degradation. One of such mechanisms is a marketable permits system (MPS). Although the properties of MPS have been studied and identified to be effective in controlled laboratory experiments, little is known about how MPS works in the real field setup. To fill the gap, this paper seeks to evaluate the effectiveness and potentials of MPS in the real forest conservation by implementing a framed field experiment. Shaktikhore, Nepal has been chosen for the experimental site, since farmers' livelihood there depends on forests and they are able to report their valuation of forestry from economic and environmental points of view. This experiment elicits economic valuation of local farmers for each unit of forestland, derives aggregate demand and supply of the permits, and with a uniform price auction (UPA), MPS field experiments were carried out to see equilibrium prices and efficiencies of the market. The results suggest that MPS is effective with high efficiency of 80% in the real field. For this success, UPA institution is identified to be the key element because (i) farmers with elementary education could understand and follow the rules of trading and (ii) they are induced to reveal their valuations of forestland through bids to buy and offers to sell. To our knowledge, this study is the first that designs and employs UPA institution under trader settings, showing the successful performance of such a MPS scheme in the real field of developing nations. Overall, our research suggests that MPS could be the effective policy option for "real" practice of natural resources management even with less administrative expertise, limited education and fewer resources to implement. |
| Keywords: | Uniform price auction, Marketable permits system, Framed eld experiment, Forest management |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:iuj:wpaper:ems_2012_11&r=env |
| By: | Neal Detert (SusDev Solutions Pte Ltd.); Koji Kotani (International University of University) |
| Abstract: | Many developing nations are in transition from non-renewable to renewable energy in electricity generation. This research analyzes this type of changing investment environment for renewable energy projects such as wind farms and solar-thermal plants with the application of real options theory. The main intent is to explore the potential and to provide further insights for such a transition in developing economies through studying the case of Mongolia under coal price uncertainty. To evaluate the comparative attractiveness of either continuing to use non-renewable (coal-based) infrastructure or switching to renewable energy, we formulate social revenue functions for the two environments under the assumptions that coal-based operations generate negative externalities and renewable energy is externality-free. Framing the problem as a type of real options, we arrive at the optimal trigger prices of coal for switching technologies. With this analytical framework, we further pose some possible scenarios with respect to electricity price as well as negative externality valuation, and characterize when renewable energy investments become attractive. In sharp contrast to conventional wisdom in real options theory, we identify some situations where option values for switching technologies become negative in some price domains, and welfare losses are incurred. Overall, the result raises the possible risks in developing nations that waiting to switch energy sources yields huge losses under input price uncertainty. To avoid such a case in Mongolia, the government should remove coal subsidies and increase electricity prices or switch to renewable energy earlier rather than holding the option to wait, especially when people are willing to pay more for the removal of negative externalities. |
| Keywords: | Alternative energy investment, Real options in discrete time, Coal prices, Stochastic process |
| JEL: | C61 G11 O13 Q32 Q42 |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:iuj:wpaper:ems_2012_10&r=env |
| By: | Hanusch, Marek |
| Abstract: | Improving the investment climate is among the top priorities in development. The World Bank Group's Doing Business reports have become an important guide and benchmark to inform regulatory reforms aimed at unleashing the potential of the private sector. This paper discusses the potential role of the Doing Business Indicators in the reform process. Generally, the Doing Business studies are constrained in their prescriptive power for policy making. However, governments that nonetheless choose to use the Doing Business reports for guidance in the reform process can aim to improve their Doing Business ranking to enhance the visibility of their general reform efforts; or they can aim at maximizing the impact of reform on economic growth. In this case, the evidence suggests that focusing on indicators relating to credit and the enforcement of contracts is the most important. Indicators related to cost have the largest potential for fostering growth. |
| Keywords: | E-Business,Environmental Economics&Policies,Business in Development,Business Environment,Competitiveness and Competition Policy |
| Date: | 2012–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6176&r=env |
| By: | Heyndrickx, Christophe; Alexeeva-Talebi, Victoria; Tourdyeva, Natalia |
| Abstract: | The growing momentum for gas price liberalization in Russia is increasingly constrained by fears of potentially strong adverse impact that market-based price setting principle will have on the economy. Based on a novel multi-regional, multi-sector and multi-household computable general equilibrium (CGE) model of the Russian Federation, this paper presents a simple yet a flexible framework for evaluating gas price reform. We found that the reform is feasible at low economic cost, without greater disparities in terms of increased inequity within and between country's federal districts. Large redistributive impacts can arise from specific mechanisms to recycle revenues. In terms of global environmental credentials, gas price liberalization can bring Russia on a substantially more sustainable path. The potential to foster adoption of energy efficiency measures by exploiting the revenue-recycling effect is, however, limited. -- |
| Keywords: | regional general equilibrium model,sustainable development,natural gas pricing,Russia |
| JEL: | D58 H21 H22 Q48 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:12052&r=env |
| By: | Fuentes Castro, D. |
| Abstract: | Welfare economics shows how innovation and cost control are necessary to correct the negative externalities of production and consumption patterns to ensure a path of sustainable growth. When welfare economics describes the fundamentals of green growth, with innovation as a cornerstone for the management of externalities, it does not confront the financial aspects of the problem. However, the transformation of the economy towards more environmentally friendly practices requires significant investments, and their financing is likely to constitute, in practice, a bottleneck. Thus, it is not excluded that economically beneficial investments that would be capable of generating growth do not emerge because of a lack of funding. This study reviews the main findings of the literature in this regard and shows the different types of actions that may be considered by public authorities to remove this obstacle. In France, public support for green growth occurs through two main sets of measures. On the one hand, the investments related to the implementation of the Grenelle Environment Forum and, secondly, through some programs included in the "Investing for the Future" program. This study examines, also, the two annual reports on the Environment commitments that have been submitted to Parliament in 2009 and 2010 and the work done to date to assess its impact on growth. Regarding the "Investing for the Future" program, the study analyzes the investment programs by institution in charge, the timing of commitments and the private sector participation. |
| Keywords: | Green Growth; Externalities; Sustainable Development; Grenelle Environment Forum; Investing for the Future; Accounts for the Environment. |
| JEL: | Q01 Q58 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:bfr:banfra:392&r=env |
| By: | Koji Kotani (International University of University); Kenta Tanaka (Tohoku University); Shunsuke Managi (Tohoku University) |
| Abstract: | The marketable permits systems have been widely suggested as a potential solution for environmental problems. A critical feature in the market is that an agent can be both sellers and buyers of permits, so-called "trader settings." Although properties 10 of the marketable permits in non-trader settings are well-documented, little is known in a trader setting, particularly about how different auction mechanisms perform and how much each of them achieves effiency. To answer the questions, we have designed and implemented two different auction mechanisms of trader settings for marketable permits in controlled laboratory experiments: (i) Double auction (DA), and (ii) Uniform price auction (UPA). To the best of our knowledge, this research is the first which designs and implements UPA for marketable permits in a trader setting, and makes a direct comparison with the performance of DA on the same ground. We obtain the following novel results: (1) UPA is more effcient than DA in a trader setting, which is in sharp contrast with the established result in non-trader settings, (2) UPA generates more stable price dynamics and (3) UPA induces subjects to reveal more truthfully about abatement costs for emissions through their trading behaviors. With these results, we conclude that UPA is more likely to work better than DA in a trader setting. |
| Keywords: | Marketable permits, Economic experiments, Double auction, Uniform price auction, Trader settings |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:iuj:wpaper:ems_2012_08&r=env |
| By: | Mourad Afif |
| Abstract: | Dans un nouveau contexte économique dominé par la crise et la récession, la limitation directe des émissions des gaz à effet de serre (GES) à l'aide de la taxe ou des permis d'émission est plus que jamais difficile à mettre en place. Ainsi, on assiste à l'émergence des appels à l'encouragement des technologies et des procédés présentant un fort potentiel d'économie des émissions. Nous savons d'après Requate et Unold [2003] que si le régulateur est myope et connaît parfaitement les coûts de dépollution, alors la taxe fournit une incitation au changement technologique plus forte que l'échange de permis. Cependant, le régulateur est souvent appelé à concevoir la politique de régulation de pollution en situation d'incertitude sur le coût de dépollution. Dans une telle situation, Roberts et Spence [1976] montrent que l'instrument hybride taxe-permis est économiquement plus efficace à réduire les émissions de pollution que la taxe seule ou le permis seul. Nous étudions dans ce papier l'impact de l'incertitude concernant le coût de dépollution sur l'incitation au changement technologique. Nous nous intéresserons particulièrement aux incitations engendrées par la taxe, le permis et le système hybride taxe-permis en situation d'incertitude sur le coût de dépollution. Cette incitation est mesurée par les gains additionnels réalisés sur le prix et le volume d'émission occasionnés par l'adoption de la technologie propre. |
| Keywords: | Adoption de technologie; Coût de dépollution; Permis d'émission; Taxes d'émission; Incertitude. |
| JEL: | D82 H23 Q52 L51 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2012-11&r=env |
| By: | Olivier Deschenes |
| Abstract: | This paper presents a survey of the empirical literature studying the relationship between health outcomes, temperature, and adaptation to temperature extremes. The objective of the paper is to highlight the many remaining gaps in the empirical literature and to provide guidelines for improving the current Integrated Assessment Model (IAM) literature that seeks to incorporate human health and adaptation in its framework. I begin by presenting the conceptual and methodological issues associated with the measurement of the effect of temperature extremes on health, and the role of adaptation in possibly muting these effects. The main conclusion that emerges from the literature is that despite the wide variety of data sets and settings most studies find that temperature extremes lead to significant reductions in health, generally measured with excess mortality. Regarding the role of adaptation in mitigating the effects of extreme temperature on health, the available knowledge is limited, in part due to the lack of real-world data on measures of adaptation behaviors. Finally, the paper discusses the implications of the currently available evidence for assessments of potential human health impacts of global climate change. |
| JEL: | I1 Q5 Q54 |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:18345&r=env |
| By: | Hasegawa, Makoto; Salant, Stephen W. (University of Michigan and Resources for the Future) |
| Abstract: | Price collars have frequently been advocated to restrict the price of emissions permits. Consequently, collars were incorporated in the three bills languishing in Congress as well as in California?'s AB-32; Europeans are now considering price collars for EU ETS. In advocating collars, most analysts have assumed (1) collars will be implemented by government purchases and sales from bufferstocks, just like bands on foreign exchange rates or commodity prices; and (2) ?firms must surrender permits whenever they pollute. In fact, however, no actual emissions trading scheme has conformed to these assumptions. In the current paper, we maintain the second assumption (continual compliance) and show that while a price collar supported by a supported sufficiently large bufferstock can restrict permit prices, a price collar supported instead by auctions with reserve prices cannot. In a companion paper (Hasegawa and Salant 2012), we show that neither method works once account is taken of delayed compliance. |
| Keywords: | emissions trading, marketable permits, price collar, safety valve, price ceiling, price floor |
| JEL: | Q54 Q58 |
| Date: | 2012–08–20 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-12-33&r=env |
| By: | Sushama Murty (Department of Economics, University of Exeter) |
| Abstract: | We identify the disposability properties of a production technology resulting from the simultaneous play of nature's emission-generating mechanism and the firm's intended production activities. Our axioms define a "by-production" technology (BPT), which has a novel functional representation and can be decomposed into a standard neo-classical intended-production technology and a nature's emission generation set. |
| Keywords: | theory of production, emission-generating production technologies, free input and output disposability, weak disposability, costly disposability, functional representations of multi-output production technologies. |
| JEL: | D20 D24 Q50 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:exe:wpaper:1202&r=env |
| By: | Sri Lestari (Forestry Research Institute, Ministry of Forestry, Indonesia); Koji Kotani (International University of University); Makoto Kakinaka (International University of University) |
| Abstract: | This paper examines voluntary participation in community forest management, and characterizes how more participation may be induced. We implemented a survey of 571 respondents and conducted a case study in Central Java, Indonesia. The study's novelty lies in categorizing the degrees of participation into three levels and in identifying how socio-economic factors affect people's participation at each level. The analysis finds heterogeneous responses across the three levels and also finds that publicly organized programs, such as information provision and benefit sharing, are highly effective. Overall, the results suggest a positive perspective and further corrective measures for the success of community forest management. |
| Keywords: | Voluntary participation, Community collaborative forest management, Participation level |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:iuj:wpaper:ems_2012_12&r=env |
| By: | Catherine Araujo Bonjean (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Stéphanie Brunelin (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Catherine Simonet (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I) |
| Abstract: | The aim of this paper is to estimate the impact of weather related income shocks on child health in rural Burkina Faso where rain fed agriculture is the dominant production system. We combine health data originating from the 2008 household survey with meteorological data to define shocks at the child level. We first estimate the marginal effect of rainfall at various ages on the child's health in order to identify the critical period during which deprivation has the most severe consequences. Then we look for a different impact of shocks on girls and boys that would reflect a gender bias in intra household resource allocation. We also assess the household ability to smooth consumption by testing for an asymmetric effect of rainfall shocks according to their size and by testing the impact of shocks according to household endowments. Results evidence a strong relationship between rainfall shocks during the prenatal period and child health. Households are not able to dampen small but negative rainfall shocks. Unexpectedly, girls are less severely affected by shocks than boys. The robustness of results is tested by using the sibling and difference-in-differences estimators as well as placebo regressions. |
| Keywords: | Child health;rainfall shock;burkina faso;sibling estimator;treatment-effect model |
| Date: | 2012–08–24 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00725253&r=env |
| By: | Hasegawa, Makoto; Salant, Stephen W. (University of Michigan and Resources for the Future) |
| Abstract: | Previous analyses assumed that ?firms must surrender permits as they pollute. If so, then the price of permits may remain constant over measurable intervals if the government injects additional permits at a ceiling price or may even collapse if more permits are injected through an auction (Hasegawa and Salant 2012). However, no cap-and-trade program actually requires continual compliance. The three federal bills and California'?s AB-32, for example, instead require that ?firms surrender permits only periodically to cover their cumulative emissions since the last compliance period. Anticipated injections of additional permits during the compliance period should have different effects than under continual compliance. We develop a methodology for analyzing the effects of such permit injections. Using it, we explain why the sales provisions of one federal bill (Kerry-Lieberman) might generate a speculative attack in the permit market and why one provision of AB-32 may undermine the very existence of an equilibrium. |
| Keywords: | emissions trading, marketable permits, price collar, safety valve, price ceiling, price floor |
| JEL: | Q54 Q58 |
| Date: | 2012–07–23 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-12-32&r=env |
| By: | David C Broadstock (Research Institute of Economics and Management (RIEM), Southwestern University of Finance and Economics, Sichuan, China and Surrey Energy Economics Centre (SEEC), School of Economics, University of Surrey, UK.); Xun Chen (Research Institute of Economics and Management (RIEM), Southwestern University of Finance and Economics, Sichuan, China) |
| Abstract: | In this paper it is shown that the relative demands for UK Gasoline and Diesel fuels are price responsive. Given differing emissions based externalities from these two fuel types, it is contended that discriminatory fuel duty might be a means to reduce these externalities. Results are derived from an Almost Ideal Demand System with time varying technological progress, estimated using a bootstrap procedure given non-normalities and relative small sample sizes. |
| Keywords: | AIDS model, technology biases, time-varying parameter. |
| JEL: | Q40 R40 |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:sur:seedps:136&r=env |
| By: | Paul Missios (Department of Economics, Ryerson University, Toronto, Canada); Ida Ferrara (Department of Economics, York University, Toronto, Canada) |
| Abstract: | In this paper, we consider households' decision of whether to recycle within a theoretical framework that allows for the inclusion of social and moral motivations. The former comes from valuing social approval while the latter comes from valuing self-image. In the context of our theoretical framework, we introduce a unit pricing system and, separately, mandatory recycling and analyze how each affects the equilibrium in terms of whether a society recycles. We show that a unit pricing system enhances the effect of intrinsic motivation (there is crowding in) while mandatory recycling erodes it (there is crowding out) provided that the marginal utility of self-image falls short of the cost of recycling relative to the environmental benefit of living in a society in which everyone recycles. If mandatory recycling is accompanied by an improvement in recycling services that applies to all recyclables and not just the mandated recyclables, crowding out becomes less likely to occur; if the improved services only apply to the mandated recyclables, there is however no effect on the potential for crowding out. Using an international household-level data set, we find support for the hypothesis that mandatory recycling can lead to crowding out while unit pricing does and, to some extent, can relate the potential for crowding out to higher recycling costs. |
| Keywords: | Unit Pricing; Mandatory Recycling; Social Motivation; Moral Motivation; Crowding in; Crowding out |
| JEL: | D03 H31 H41 Q53 |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:rye:wpaper:wp031&r=env |
| By: | Ferdinando Villa; Ken Bagstad; Gary Johnson; Brian Voigt |
| Abstract: | Recent ecosystem services research has highlighted the importance of spatial connectivity between ecosystems and their beneficiaries. Despite this need, a systematic approach to ecosystem service flow quantification has not yet emerged. In this article, we present such an approach, which we formalize as a class of agent-based models termed “Service Path Attribution Networks†(SPANs). These models, developed as part of the Artificial Intelligence for Ecosystem Services (ARIES) project, expand on ecosystem services classification terminology introduced by other authors. Conceptual elements needed to support flow modeling include a service’s rivalness, its flow routing type (e.g., through hydrologic or transportation networks, lines of sight, or other approaches), and whether the service is supplied by an ecosystem’s provision of a beneficial flow to people or by absorption of a detrimental flow before it reaches people. We describe our implementation of the SPAN framework for five ecosystem services and discuss how to generalize the approach to additional services. SPAN model outputs include maps of ecosystem service provision, use, depletion, and flows under theoretical, possible, actual, inaccessible, and blocked conditions. We highlight how these different ecosystem service flow maps could be used to support various types of decision making for conservation and resource management planning. |
| Keywords: | Ecosystem services, spatial flows, beneficiaries, Service Path Attribution Network (SPAN), Artificial Intelligence for Ecosystem Services (ARIES) |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:bcc:wpaper:2012-07&r=env |
| By: | John Lynham (Department of Economics, University of Hawaii at Manoa, USA) |
| Abstract: | A unique database was created that describes the methods used to allocate shares in nearly every major catch share fishery in the world. The main approaches used to allocate catch shares include: (i) auctions, (ii) equal allocation, (iii) historical catch records and (iv) vessel- or gear-based rules. 54% of the major catch share fisheries in the world allocated the Total Allowable Catch (TAC) on the basis of historical catch records, 3% used auctions, and 6% used equal sharing rules. 37% used a combination of methods, including vessel-based rules. 91% of the fisheries in the database allocated some fraction of the TAC on the basis of historical catch. These results confirm the widely-held belief that nearly all catch share programs have “grandfathered” private access to fishery resources. This publicly available database should be a useful reference tool for policymakers, academics, and others interested in catch shares management in Hawai‘i and across the globe. |
| Keywords: | catch shares, ITQ, allocation, auction |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:hai:wpaper:201219&r=env |
| By: | Christopher L Ambrey; Christopher M Fleming |
| Keywords: | Protected areas, non-market valuation, life satisfaction, happiness, Household Income and Labour Dynamics in Australia (HILDA) |
| JEL: | Q51 C21 R20 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:gri:epaper:economics:201203&r=env |
| By: | Gustavo Hernández |
| Abstract: | Siguiendo el artículo de Fullerton y Heutel (2010) se construye un modelo de equilibrio general computable para una economía cerrada, el cual involucra polución. Esto con el objetivo de analizar los efectos que tiene un impuesto a las emisiones de carbono sobre los precios y cantidades de la producción y los factores productivos. Se procede a calibrar el modelo con los datos de la industria colombiana, con base en la Encuesta Anual Manufacturera y de emisiones de CO2 para el sector. Se encuentra que el imponer un impuesto a las emisiones reduce la polución, sin embargo, esto depende en gran parte de las complementariedades o sustituciones entre los factores de producción. Finalmente, se encuentra que la carga tributaria es soportada en gran parte por los consumidores, vía un mayor precio, y el mercado de trabajo, por la recomposición de los factores dentro del modelo. |
| Date: | 2012–07–02 |
| URL: | http://d.repec.org/n?u=RePEc:col:000118:009906&r=env |
| By: | Esther Blanco; Javier Lozano |
| Abstract: | This paper develops an evolutionary bio-economic model for hunting, farming and tourism (non-consumptive and safari hunting) to study the determinants of the prosperity of conservancy programs. The model is inspired in the Conservancy program of Namibia, despite it is of more general applicability to other contexts. We explore the relevance of the design attributes of conservancy programs in their prosperity in the long-run as well as the relevance of variables of the context of application highlighted in empirical literature. In addition, we explore the welfare implications of conservancies for local communities and its compatibility with conservation objectives. We discuss the results of the conservancy model with respect to the benchmark of open access and of compensation policies for agricultural looses out of wildlife. |
| Keywords: | Bioeconomic modeling, Community-based management, Wildlife |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:inn:wpaper:2012-18&r=env |
| By: | Eneko Garmendia; Gonzalo Gamboa |
| Abstract: | The use of multi-criteria evaluation tools in combination with participatory approaches provides a promising framework for integrating multiple interests and perspectives in the effort to provide sustainability. However, the inclusion of diverse viewpoints requires the “compression†of complex issues, a process that is controversial. Ensuring the quality of the compression process is a major challenge, especially with regards to retaining the essential elements of the various perspectives. In this article, we suggest a process in which the explicit elicitation of weights (i.e., the prioritisation of criteria) within a participatory multi-criteria evaluation serves as a quality assurance mechanism to check the robustness of sustainability integrated assessment processes from a social perspective. We demonstrate this approach using a case study focused on the sustainable management of the Urdaibai Estuary in the Basque Country (Southern Europe). Drawing on the large body of literature on sophisticated mathematical models that help identify and prioritise criteria, this approach allows (1) an explicit “social sensitivity†analysis despite the incommensurability of values regarding individual or group priorities, and (2) participants to learn from and reflect upon diverse social preferences without forcing their consensus. |
| Keywords: | complex systems, social preferences, participatory multi-criteria evaluation, incommensurability of values, weights |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:bcc:wpaper:2012-06&r=env |