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on Environmental Economics |
| By: | Burtraw, Dallas (Resources for the Future) |
| Abstract: | Economic approaches are expected to achieve environmental goals at less cost than traditional regulations, but they have yet to find widespread application. One reason is the way these tools interact with existing institutions. The federalist nature of governmental authority assigns to subnational governments much of the implementation of environmental policy and primary authority for planning the infrastructure that affects environmental outcomes. The federalist structure also interacts with the choice of economic instruments; a national emissions cap erodes the additionality of actions by subnational governments. Even the flagship application of sulfur dioxide emissions trading has been outperformed by the venerable Clean Air Act, and greenhouse gas emissions in the United States are on course to be less than they would have been if Congress had frozen emissions with a cap in 2009. The widespread application of economic tools requires a stronger political theory of how they interact with governing institutions. |
| Keywords: | environmental federalism, additionality, emissions cap, Clean Air Act, sulfur dioxide, carbon dioxide |
| JEL: | Q50 Q58 H77 |
| Date: | 2012–08–24 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-12-41&r=env |
| By: | Greasley, David; Hanley, Nicholas; Kunnas, Jan; McLaughlin, Eoin; Oxley, Les; Warde, Paul |
| Abstract: | In this paper, we examine means to incorporate the environmental effects of fossil fuel use into national accounts and genuine savings estimates. The main focus is on the rationales for the inclusion of carbon dioxide, and its appropriate price tag. We do this in the context of the pricing of historic carbon emissions in United Kingdom over the long run (from the onset of the industrial revolution to the present). Furthermore, we examine the reasonableness of taking into account other greenhouse gases than carbon dioxide. The global effects of carbon dioxide are compared to the local detrimental effects of the production and consumption of coal in the UK. |
| Keywords: | Britain; Economic History; Global Warming; Carbon Dioxide; Fossil Fuels; National accounts; Genuine Savings |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:stl:stledp:2012-16&r=env |
| By: | Zuniga Gonzalez, Carlos Alberto; Toruno, Pedro Jose |
| Keywords: | Malmquist Indexes, Biomass, Carbon Storage, Carbon losses., Environmental Economics and Policy, Livestock Production/Industries, Productivity Analysis, O13, O47, Q51, O:33, Q:57, |
| Date: | 2012–09–11 |
| URL: | http://d.repec.org/n?u=RePEc:ags:naunwp:133181&r=env |
| By: | Amigues, Jean-Pierre; Lafforgue, Gilles; Moreaux, Michel |
| Abstract: | Using the Chakravorty et al. (2006) ceiling model, we characterize the optimal consumption paths of three energy resources: dirty oil, which is non-renewable and carbon emitting; clean oil, which is also non-renewable but carbon-free thanks to an abatement technology, and solar energy, which is renewable and carbon-free. The resulting energy-mix can supply the energy needs of two sectors. These sectors differ in the additional abatement cost they have to pay for consuming clean rather than dirty oil (sector 1 can abate its emissions at a lower cost than sector 2). We show that it is optimal to begin by fully capturing sector 1’s emissions before the ceiling is reached. Also, there may exist optimal paths along which both capture devices have to be activated. In this case first sector’s 1 emissions are fully abated before sector 2 abates partially. Finally, we discuss the effect of heterogeneity regarding the abatement cost on the uniqueness of the sectoral energy price paths. |
| Keywords: | Energy resources; Carbon stabilization cap; Heterogeneity; Carbon capture and storage; Air capture. |
| JEL: | Q32 Q42 Q54 Q58 |
| Date: | 2012–07–23 |
| URL: | http://d.repec.org/n?u=RePEc:ide:wpaper:26059&r=env |
| By: | Amigues, Jean-Pierre; Lafforgue, Gilles; Moreaux, Michel |
| Abstract: | Using the Chakravorty et al. (2006) ceiling model, we characterize the optimal consumption paths of three energy resources: dirty oil, which is non-renewable and carbon emitting; clean oil, which is also non-renewable but carbon-free thanks to an abatement technology, and solar energy, which is renewable and carbon-free. The resulting energy-mix can supply the energy needs of two sectors. These sectors differ in the additional abatement cost they have to pay for consuming clean rather than dirty oil (sector 1 can abate its emissions at a lower cost than sector 2). We show that it is optimal to begin by fully capturing sector 1’s emissions before the ceiling is reached. Also, there may exist optimal paths along which both capture devices have to be activated. In this case first sector’s 1 emissions are fully abated before sector 2 abates partially. Finally, we discuss the effect of heterogeneity regarding the abatement cost on the uniqueness of the sectoral energy price paths. |
| Keywords: | Energy resources; Carbon stabilization cap; Heterogeneity; Carbon capture and storage; Air capture. |
| JEL: | Q32 Q42 Q54 Q58 |
| Date: | 2012–07–23 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:26060&r=env |
| By: | WenShwo Fang (Feng Chia University); Stephen M. Miller (University of Nevada, Las Vegas and University of Connecticut) |
| Abstract: | Proponents of energy service companies (ESCOs) argue that these firms provide a crucial instrument for delivering improved energy efficiency in public and private sectors, thus contributing to carbon dioxide (CO2) emissions reduction around the world. Do ESCOs reduce CO2 emissions? To answer this question, we develop an estimating equation, which approximates the IPAT model, from a simple model of production. Based on the modified dynamic IPAT model, using the panel data of 129 countries over the period 1980 to 2007, we provide significant evidence to show that the ESCOs effectively reduce CO2 emissions and this effect increases over time. These findings also prove robust to the inclusion of a set of control variables, different dates of the first ESCO, and the Kyoto Protocol. Finally, we discuss energy policy implications. |
| Keywords: | Energy service companies (ESCOs), Carbon dioxide (C02) emissions, Dynamic IPAT model |
| JEL: | Q55 Q56 |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:uct:uconnp:2012-14&r=env |
| By: | Nkuiya, Bruno |
| Abstract: | This paper extends the standard model of self-enforcing dynamc international environmental agreements by allowing the length of the period of commitment of such agreements to vary as a parameter. It analyzes the pattern of behavior of the size of stable coalitions, the stock of pollution, and the emission rate as a function of the length of the period of commitment. It is shown that the length of the period of commitment can have very significant effects on the equilibrium. We show numerically that at the initial date, as the length of commitment is increased, the potential gain from cooperation tends to diminish, increasing the disincentive to ratify the agreements. This suggests that considerable attention should be given to the determination of the length of such international agreements. |
| Keywords: | International environmental agreements, global pollution, stock pollution, dynamc games, Environmental Economics and Policy, Q5, C73, F53, |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ulavwp:132419&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; Department of Economics, Trinity College, Dublin, Ireland) |
| Abstract: | The transition from autocracy to democracy may lead a country to break-up. The break-ups of the USSR and Yugoslavia led to sharp falls in emissions. If something similar would happen in China, projected emissions would fall by 50% or more. Break-up uncertainty dominates other scenario uncertainty. |
| Keywords: | China, scenarios, carbon dioxide emissions |
| JEL: | Q54 |
| Date: | 2012–09 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susewp:3912&r=env |
| By: | Michael Greenstone; John A. List; Chad Syverson |
| Abstract: | The economic costs of environmental regulations have been widely debated since the U.S. began to restrict pollution emissions more than four decades ago. Using detailed production data from nearly 1.2 million plant observations drawn from the 1972-1993 Annual Survey of Manufactures, we estimate the effects of air quality regulations on manufacturing plants’ total factor productivity (TFP) levels. We find that among surviving polluting plants, stricter air quality regulations are associated with a roughly 2.6 percent decline in TFP. The regulations governing ozone have particularly large negative effects on productivity, though effects are also evident among particulates and sulfur dioxide emitters. Carbon monoxide regulations, on the other hand, appear to increase measured TFP, especially among refineries. The application of corrections for the confounding of price increases and output declines and sample selection on survival produce a 4.8 percent estimated decline in TFP for polluting plants in regulated areas. This corresponds to an annual economic cost from the regulation of manufacturing plants of roughly $21 billion, about 8.8 percent of manufacturing sector profits in this period. |
| JEL: | D2 K3 L5 L6 Q5 |
| Date: | 2012–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:18392&r=env |
| By: | Abay Mulatu; Ada Wossink |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:man:sespap:1215&r=env |
| By: | Fischer, Carolyn (Resources for the Future); Fox, Alan K. |
| Abstract: | Climate policymaking faces twin challenges of carbon leakage and public sector revenue requirements. A large literature advocates the use of carbon dioxide (CO2) pricing and recycling the revenues to lower distorting taxes as a way to minimize costs. In this paper, we explore the implications of labor tax interactions for the cost-effectiveness of border adjustments and other measures to cope with leakage. We find that, for plausible values of labor supply elasticities, the cost savings from revenue recycling are significant—from 15 to 25 percent. The cost savings from anti-leakage measures are generally smaller, but also significant, particularly for small coalitions or more binding reduction targets. Tax interactions further enhance the cost savings from border adjustments, but make other measures like rebates or exemptions less attractive. |
| Keywords: | climate policy, carbon leakage, tax interactions, border adjustments |
| JEL: | Q5 H21 |
| Date: | 2012–08–23 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-12-19&r=env |
| By: | Zuniga Gonzalez, Carlos Alberto; Blanco Roa, Noel Ernesto; Berrios, Roberto; Martinez Avendaño, Jario Terencio |
| Keywords: | Green Economic, Bio Economic, Bio Technology, Malmquist Indexest, Methane Emission Productivity., Environmental Economics and Policy, Livestock Production/Industries, Productivity Analysis, O13, O47, Q51, |
| Date: | 2012–09–11 |
| URL: | http://d.repec.org/n?u=RePEc:ags:naunwp:133189&r=env |
| By: | Thomas Eichner; Rüdiger Pethig |
| Abstract: | The basic model of the literature on self-enforcing international environmental agreements is a model of autarkic countries. We extend that model by international trade and investigate its impact on the performance of ’Nash’ coalitions and on their stability, in particular, in a general equilibrium framework. First we characterize the performance of coalitions and non-coalition countries with regard to emissions and welfare and compare business as usual with the coalition-fringe scenario. In qualitative terms, the results in our free-trade model turn out to be the same as in the basic model for quadratic functional forms. In our model with international trade countries influence the terms of trade with their choice of policy and they make strategic use of that terms-of-trade effect. We find, however, that in the quadratic version of our model - as in the basic model - stable coalitions consist of no more than two countries. Finally, we explore the outcome of trade liberalization by moving from autarky to free trade. Although the coalition steps up its mitigation effort, world emissions rise which may be referred to as a ’green paradox of trade liberalization’. Trade liberalization turns out to be bad for the environment as well as for the coalition countries’ welfare and the aggregate welfare of all countries; it reduces the range of profitable coalitions, and it even tends to hamper the formation of stable coalitions. |
| Keywords: | sub-global climate coalition, international trade,trade liberalization, self-enforcing IEA |
| JEL: | C72 F50 Q50 Q58 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:sie:siegen:155-12&r=env |
| By: | Jordi Teixidó-Figueras (Departament d’Economia Universitat Rovira i Virgili, Av. de la Universitat, 1, 43204. Reus, Spain, CREIP and XREAP); Juan Antonio Duro (Departament d’Economia Universitat Rovira i Virgili, Av. de la Universitat, 1, 43204. Reus, Spain, CREIP and XREAP) |
| Abstract: | Scarcities of environmental services are no longer merely a remote hypothesis. Consequently, analysis of their inequalities between nations becomes of paramount importance for the achievement of sustainability in terms either of international policy, or of Universalist ethical principles of equity. This paper aims, on the one hand, at revising methodological aspects of the inequality measurement of certain environmental data and, on the other, at extending the scarce empirical evidence relating to the international distribution of Ecological Footprint (EF), by using a longer EF time series. Most of the techniques currently important in the literature are revised and then tested on EF data with interesting results. We look in depth at Lorenz dominance analyses and consider the underlying properties of different inequality indices. Those indices which fit best with environmental inequality measurements are CV2 and GE(2) because of their neutrality property, however a trade-off may occur when subgroup decompositions are performed. A weighting factor decomposition method is proposed in order to isolate weighting factor changes in inequality growth rates. Finally, the only non-ambiguous way of decomposing inequality by source is the natural decomposition of CV2, which additionally allows the interpretation of marginal term contributions. Empirically, this paper contributes to the environmental inequality measurement of EF: this inequality has been quite stable and its change over time is due to per capita vector changes rather than population changes. Almost the entirety of the EF inequality is explainable by differences in the means between the countries of the World Bank group. This finding suggests that international environmental agreements should be attempted on a regional basis in an attempt to achieve greater consensus between the parties involved. Additionally, source decomposition warns of the dangers of confining CO2 emissions reduction to crop-based energies because of the implications for basic needs satisfaction. |
| Keywords: | Ecological footprint; ecological inequality measurement, inequality decomposition. |
| Date: | 2012–09 |
| URL: | http://d.repec.org/n?u=RePEc:xrp:wpaper:xreap2012-15&r=env |
| By: | Timothy Simcoe; Michael W. Toffel |
| Abstract: | We measure the impact of municipal policies requiring governments to construct green buildings on private-sector adoption of the U.S. Green Building Council's Leadership in Energy and Environmental Design (LEED) standard. Using matching methods, panel data, and instrumental variables, we find that government procurement rules produce spillover effects that stimulate both private-sector adoption of the LEED standard and supplier investments in green building expertise. Our findings suggest that government procurement policies can accelerate the diffusion of new environmental standards that require coordinated complementary investments by various types of private adopter. |
| JEL: | L15 O33 Q55 Q58 |
| Date: | 2012–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:18385&r=env |
| By: | Stefan Stahl (University of Rostock) |
| Abstract: | As a consequence of rising demand for ethical investments, companies face the challenge to include environmental protection objectives in investment appraisal besides their monetary goals. Existing approaches of investment valuation that take into account environmental protection combine traditional investment appraisal methods for the monetary terms with utility value analysis for the non-monetary terms, or comprise the monetization of environmental variables. Both approaches have shortcomings. As an alternative to the existing approaches, this paper develops an investment evaluation model that simultaneously takes into account the environmental and monetary goals. From the perspective of investors, requirements for such a model are transparency of the investment decision and the possibility of weighting financial and environmental goals. From the perspective of company decision-makers, the main requirements are a low complexity, solvability and a manageable information demand. These requirements are fulfilled by extending an investment valuation model by elements of fuzzy linear programming. |
| Keywords: | Investment theory, environmental protection, ethical investment, linear programming, fuzzy linear programming |
| JEL: | G31 M14 C61 Q56 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ros:wpaper:128&r=env |
| By: | Thomas Eichner; Rüdiger Pethig |
| Abstract: | In the basic model of the literature on international environmental agreements (IEAs) (Barrett 1994; Rubio and Ulph 2006) the number of signatories of selfenforcing IEAs does not exceed three, if non-positive emissions are ruled out. We extend that model by introducing a composite consumer good and fossil fuel that are produced and consumed in each country and traded on world markets. When signatory countries act as Stackelberg leader and emissions are positive, the size of stable IEAs may be significantly larger in our model with international trade. This would be good news if larger self-enforcing IEAs would lead to stronger reductions of total emissions. Unfortunately, the allocation of total emissions in self-enforcing IEAs turns out to be approximately the same as in the business as usual scenario independent of the number of its signatories. We also investigate the role of international trade by comparing our free-trade results with the outcome in the regime of autarky. Our autarky model turns out to coincide with the basic model of the literature alluded to above. We contribute to that literature by showing that in autarky regime the outcome of self-enforcing IEAs is also approximately the same as in business as usual. |
| Keywords: | international trade, self-enforcing environmental agreements, Stackelberg equilibrium |
| JEL: | C72 F02 Q50 Q58 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:sie:siegen:156-12&r=env |
| By: | Suarez, Ronny |
| Abstract: | In this paper a case study is presented to propose an alternative mechanism to include the impact of climate change into the hydropower projects’ feasibility valuation. We started from an independent engineer historical energy generation simulations; therefore, applying mixing unconditional disturbance and extreme value theory, a new path that satisfies a return level’ specification is created. The new path is used to analyze the effect of extreme events on the internal rate of return of the project. This mechanism could also be used to execute an educated guess as simple sensitivity test. |
| Keywords: | Extreme Value Theory; Generalized Pareto Distribution; Return Level; Mixing Unconditional Disturbances; Climate Change; Stress Testing |
| JEL: | C00 G00 |
| Date: | 2012–09–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:41279&r=env |
| By: | Billette de Villemeur, Etienne; Pineau, Pierre-Olivier |
| Abstract: | Electricity markets vary greatly across jurisdictions, in terms of regulatory institutions, cost levels and environmental impacts. Integrating such different markets can lead to significant changes. This paper considers two jurisdictions - one with a regulated monopoly selling at average cost and one with a competitive market - and compares three different institutional regimes: autarky, a mixed-market structure with trade and a fully integrated market, where electricity is sold at marginal cost. We show that, in the second regime, the regulated monopoly always exports toward the jurisdiction pricing at marginal cost, up to inducing productive inefficiencies. By contrast, a shift from the second to the third regime, i.e. "integrated deregulation" yields a decrease in overall consumption. We identify the exact conditions under which the shift from one regime to the other results in environmental gains. |
| Keywords: | Market Integration; Regulation; Electricity Trade; Environmental Impacts |
| JEL: | F15 Q52 Q56 F14 L94 L50 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:41251&r=env |
| By: | Goulder, Lawrence H.; Williams, Roberton C. (Resources for the Future) |
| Abstract: | Nearly all discussions about the appropriate consumption discount rate for climate change policy evaluation assume that a single discount rate concept applies. We argue that two distinct concepts and associated rates apply. We distinguish between a social-welfare-equivalent discount rate appropriate for determining whether a given policy would augment social welfare (according to a postulated social welfare function) and a finance-equivalent discount rate suitable for determining whether the policy would offer a potential Pareto improvement. Distinguishing between the two rates helps resolve arguments as to whether the choice of discount rate should be based on ethical considerations or empirical information (such as market interest rates), and whether the discount rate should serve a prescriptive or descriptive role. Separating out the two rates also helps clarify disputes about the appropriate stringency of climate change policy. We find that the structure of leading numerical optimization models used for climate policy analysis may have helped contribute to the blurring of the differences between the two rates. In addition, we indicate that uncertainty about underlying ethical parameters or market conditions implies that both rates should decline as the time horizon increases. |
| Keywords: | climate change, discounting, discount rate |
| JEL: | D61 D63 H43 Q54 |
| Date: | 2012–09–06 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-12-43&r=env |
| By: | Anping Chen (School of Economics Jinan University); Nicolaas Groenewold (Business School, University of Western Australia) |
| Abstract: | China has promised to cut CO2 emissions per unit of GDP 40-50% by 2020. It is almost certain that the reduction in emissions will have negative effects on the economy; moreover, the effects are likely to differ across regions, given that there is considerable heterogeneity among Chinese regions. These differential regional impacts will affect regional disparities, which are already very substantial and the source of great concern at the highest policy levels. Yet, very little analysis of them has yet been carried out. We help fill this gap by building a small theoretical model involving two regions designed to capture some of the features of the Chinese economy. We incorporate the right to emit CO2 as a factor of production with the national level of permitted emissions set by the national government. The model is solved numerically based on a parameterisation using Chinese data to simulate the effects on the regions of the carbon-reduction. We find that a reduction has regionally differentiated effects on key variables such as income, welfare and output. We also explore the effects of offsetting policies that may be undertaken by governments at both regional and national levels to ameliorate the effects of the carbon reduction. We find that the effects of standard fiscal policies (both regional and national) depend crucially on whether one or both regions are targeted. Welfare changes are often in the opposite direction to output changes. Boosts to productive capacity do better in terms of output but also have “perverse” welfare effects. |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:uwa:wpaper:12-14&r=env |
| By: | Jürgen Wicht (Schumpeter School of Business and Economics) |
| Abstract: | Simulations can be an appropriate tool in the determination of cost-optimal ordering and delivery requirements considering medium and long-term manipulable constraints. Against the background of sustainable supply chain management increasingly relevant environmental factors can be taken into account within such simulations by determining process-related CO2-costs and including these costs into the validation of individual simulation results. This is demonstrated by using the replenishment process between the distribution center and a store of an international drug store chain. Based on actual sales data, logistical product data and given restrictions on date and frequency of possible orders and deliveries different order cycles are simulated, subsequently evaluated and analyzed in terms of costs. |
| Keywords: | Carbon Footprint, Logistics Costs, Order Cycle, Replenishment, Simulation, Sustainable Supply Chain Management |
| JEL: | C6 L1 L8 |
| Date: | 2012–09 |
| URL: | http://d.repec.org/n?u=RePEc:bwu:schdps:sdp12008&r=env |
| By: | Roger Fouquet |
| Abstract: | This paper briefly highlights some of the most influential ideas in the literature on the economics of energy and (energy-related) climate change. This paper will use bibliometric evidence to examine the trends in related research over the last forty years, and analyse the explosion in energy and climate change research in the last ten years. It will also, more controversially, consider the validity of the hypothesised rise in original ideas in the literature (during the 1990s) and then decline (or relative decline) since the explosion in research output (since 2005). This paper proposes that if economists are going to make an equally important and constructive contribution as they did up to 2012, then their ideas will need to move forward and evolve, offering exciting and stimulating new solutions for the post-Kyoto era. |
| Keywords: | Energy, Climate Change. |
| Date: | 2012–09 |
| URL: | http://d.repec.org/n?u=RePEc:bcc:wpaper:2012-08&r=env |
| By: | Rosa Duarte (Department of Economic Analysis, Faculty of Economics and Business Studies, Universidad de Zaragoza); Vicente Pinilla (Department of Applied Economics and Economic History, Faculty of Economics and Business Studies, Universidad de Zaragoza); Ana Serrano (Department of Economic Analysis, Faculty of Economics and Business Studies, Universidad de Zaragoza) |
| Abstract: | This paper presents an analysis of the relationship between per capita water use and per capita income for 65 countries over the period 1962-2008 within the framework of the so-called environmental Kuznets curve (EKC). Consistent with the existing literature, a polynomial fixed effects model is firstly presented. Then, a logistic Panel Smooth Transition Regression (PSTR) is estimated, capturing individual heterogeneity and time variability of income elasticity. This empirical study yields several important findings. The nexus between water withdrawal per person and per capita GDP is non-linear, showing a peculiar U-inverted with a marked downward limb that dominates the nexus regardless the estimation method chosen. On the whole, water use income elasticity clearly decreases throughout the period; nevertheless it exhibits a great variability over the sample, reflecting the divergent patterns of water use depending on the level of income of each country and period. |
| Keywords: | Water use, Panel Smooth Transition Regression model, Environmental Kuznets Curve, nonlinearity, per capita income |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:zar:wpaper:dt2012-03&r=env |
| By: | Wolfgang Buchholz; Richard Cornes; Dirk Rübbelke |
| Abstract: | Recent international climate negotiations suggest that complete agreements are unlikely to materialize. Instead, partial cooperation between like-minded countries appears a more likely outcome. In this paper we analyze the effects of such partial cooperation between like-minded countries. In doing so, we link the literature on partial cooperation with so-called matching approaches. Matching schemes are regarded as providing a promising approach to overcome undersupply of public goods like climate protection. The functioning of matching mechanisms in a setting with an incomplete agreement, i.e. a contract where only a subset of the players participates, has however not been investigated yet. This paper fills this research gap by analyzing incomplete matching agreements in the context of international climate protection. We analyse their effect on both welfare and the global climate protection level. We show that matching coalitions may bring about a decline in global public good provision and a reduction in the welfare of outsiders. |
| JEL: | C78 H41 Q54 |
| Date: | 2012–09 |
| URL: | http://d.repec.org/n?u=RePEc:acb:cbeeco:2012-584&r=env |
| By: | WenShwo Fang (Feng Chia University); Stephen M. Miller (University of Nevada, Las Vegas and University of Connecticut); Chih-Chuan Yeh (The Overseas Chinese University) |
| Abstract: | Energy saving can importantly help prevent greenhouse gas emissions and, thus, climate change. Energy service companies (ESCOs) provide a crucial instrument for delivering improved energy efficiency and potentially contributing to substantial energy savings in the public and private sectors. This paper investigates empirically the effect of ESCO activities on energy use. Based on a dynamic IPAT model, using a panel data of 94 countries over the period 1981 to 2007, we provide significant evidence that ESCOs reduce energy use. This finding proves robust to different dates of the first ESCO. The negative ESCO effect increases over time. The dynamic adjustment process produces small effects in the short run, but large effects in the long run. Moreover, the long-run ESCO effect differs across the stages of development. That is, for the high- and low-income countries, the short-run ESCO effect remains negative, but the long-run effects differ, remaining negative in high-income countries, but becoming positive in low-income countries. Finally, we discuss energy policy implications. |
| Keywords: | Energy use, Energy service companies (ESCOs), Dynamic IPAT model |
| JEL: | O13 Q43 Q55 |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:uct:uconnp:2012-13&r=env |
| By: | Sana Abusin |
| Abstract: | This paper adapted the modified dynamic deterrence model to investigate factors affecting compliance with mesh size regulation. the reduced form of this model is tested based on data from the Jebel Aulia Reservoir (JAR) in Khartoum State, Sudan. Factors that determine noncompliance with mesh size regulations were analysed, using the Tobit model. The results showed that the main determinants of noncompliance are poverty and weak and inefficient institutions. This has induced a sudden increase in violation that has led to desperate fishery situations. Young fishers are more likely to violate these regulations, and the study finds that deterrence and social variables are both important determinants of noncompliance with mesh-size regulation. A regime of self enforcement to manage this resource is not possible due to various factors, such as low levels of education, lack of proper knowledge about regulations, and the low skills and lack of ability of administration and of the funding needed to implement such a regime. The study therefore suggests a co-management regime given that co-management increases the awareness of fishing communities about the need for sustainable management of fishery resources and in this turn helps to reduce violation. More than half of the surveyed fishers believed that this regime is suitable for them to achieve sustainable fishery resource. |
| Keywords: | Fishery regulations, dynamic deterrence model, Sudan, Tobit, management |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:309&r=env |
| By: | Blasch, Julia; Farsi, Mehdi |
| Abstract: | Using a choice experiment conducted among more than a thousand Swiss consumers, we analyze the individual demand for voluntary carbon offsets in different contexts. The analysis is used to identify the consumers’ underlying motives for offsetting emissions, the context effects on their willingness to pay and the influence of the offsetting project characteristics on their propensity for contribution. Furthermore, the characteristics of potential buyers as well as the possibilities of behavioral rebound are explored. To support our results, we assess whether the hypothetical preferences are consistent with the revealed behavior. The adopted latent class model accounts for heterogeneity of preferences with respect to offset products offered in the market. The results provide a quantitative assessment of consumers’ marginal valuation of carbon offsets and a better understanding of individual preferences. The results also point to strong heterogeneity among individuals favoring targeted policy measures to induce voluntary contribution. |
| Keywords: | Voluntary carbon offsets; Willingness to pay; Choice experiment; Latent class model |
| JEL: | D03 D12 Q54 |
| Date: | 2012–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:41259&r=env |
| By: | Bush, Glenn; Hanley, Nicholas; Moro, Mirko; Rondeau, Daniel |
| Abstract: | Protected areas are employed world-wide as a means of conserving biodiversity. Unfortunately, restricting access to such areas imposes opportunity costs on local people who have traditionally relied on access to obtain resources such as fuelwood and bushmeat. We use contingent valuation to estimate the local benefits forgone from loss of access to a number of protected area types in Uganda. Methodologically, we innovate by implementing a "provision point" mechanism to estimate Willingness to Accept compensation (WTA) for loss of access to protected areas. We show that the provision point reduces mean WTA by a significant degree. |
| Keywords: | WTA; Provision point mechanism; Willingness to accept; Uganda; Protected areas; Conservation costs |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:stl:stledp:2012-14&r=env |
| By: | Georg Inderst; Christopher Kaminker; Fiona Stewart |
| Abstract: | This definitional, stocktaking paper aims to provide a comprehensive review of the concepts and definitions related to “green” investments that are currently used in the market place. The purpose of this research is not to take a position on a specific definition but rather to explore what is being generally used, whether there are commonalties and inconsistencies, and what lessons can be drawn from this analysis.<P> The paper examines how “green” investments are defined across different asset classes (equities, bonds and alternative investments), as well as providing some estimates of the size of these markets. The paper concludes that, given the lack of consensus on the usage and definition of the term “green”, the most productive approach could be to take an open and dynamic stance towards definitions and standards, with international institutions and governments adopting a “governance approach to green investment”.<BR>Ce document à caractère définitionnel et d’inventaire vise à fournir une revue complète des concepts et définitions liés aux investissements « verts » utilisés actuellement sur le marché. L’objectif de cette recherche n’est pas de prendre position pour une définition particulière mais plutôt d’explorer ce qui est généralement utilisé, s’il existe des points communs et des incohérences et quelles leçons peuvent être tirées de cette analyse.<P>Le document examine comment les investissements « verts » sont définis à travers différentes classes d’actif (actions, obligations and investissements alternatifs) et fournit également certaines estimations de la taille de ces investissements. Le document conclut que, étant donné le manque de consensus autour de l’usage et de la définition du terme « vert », l’approche la plus productive pourrait être d’adopter une attitude ouverte et dynamique au regard des définitions et des standards, les institutions internationales et les gouvernements pouvant adopter « une approche de gouvernance pour l’investissement vert ». |
| Keywords: | green bonds, pension funds, socially responsible investment (SRI), environmental, social and governance (ESG), fonds de pension, investissement socialement responsable (ISR), social/sociétal et la gouvernance (ESG), obligations vertes |
| JEL: | G15 G18 G23 G28 J26 |
| Date: | 2012–09 |
| URL: | http://d.repec.org/n?u=RePEc:oec:dafaad:24-en&r=env |
| By: | Christiane Malina (Institute of Spatial and Housing Economics, Muenster); Frauke Fischer (Institute of Transport Economics, Muenster) |
| Abstract: | High levels of particulate matter scaling less than 10 micrometers in diameter (PM10) in many urban areas have led to the introduction of binding PM10 limit values by the European Commission in 2005. Road transport in inner city areas is believed to be one of the main contributors to accumulated PM10 levels and, thus, is the focus of regulation. One of the strongest regulatory mechanisms to meet the new PM10 air quality standard is the introduction of low emission zones (LEZs) in Germany. This policy allows local authorities to define geographical areas in urban agglomerations as LEZs, into which vehicles that do not meet predetermined emission standards are prohibited from entering. This paper evaluates the effectiveness of LEZs on reducing PM10 levels in German cities. We employ a fixed effects panel data model to analyze the effects of LEZs on daily PM10 levels using data from 2000 to 2009. We take into account daily data for meteorological conditions and traffic volume. The results of the analysis reveal that the introduction of LEZs has significantly reduced daily PM10 levels in urban areas. We can also show that PM10 levels are significantly driven down further when LEZ standards in cities become more stringent over time. |
| Keywords: | Particulate matter, low emission zones, panel data |
| JEL: | Q58 R49 |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:mut:wpaper:58&r=env |
| By: | Corey Lang |
| Abstract: | Despite extensive use of housing data to reveal valuation of non-market goods, the process of house price capitalization remains vague. Using the restricted access American Housing Survey, a high-frequency panel of prices, turnover, and occupant characteristics, this paper examines the time path of capitalization and preference-based sorting in response to air quality changes caused by differential regulatory pressure from the 1990 Clean Air Act Amendments. The results demonstrate that owner-occupied units capitalize changes immediately, whereas rent capitalization lags. The delayed but sharp rent capitalization temporally coincides with evidence of sorting, suggesting a strong link between location choices and price dynamics. |
| Keywords: | Hedonic valuation, Capitalization, Sorting, Air Quality |
| JEL: | R23 R31 Q51 Q53 |
| Date: | 2012–09 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:12-22&r=env |
| By: | Desquilbet, Marion (TSE (INRA,GREMAQ)); Hermann, Markus (Department of Economics University Laval and CREATE, CIRPEE) |
| Abstract: | We examine the optimal time-variant refuge policy to manage pest resistance to Bt crops in afinite-horizon discrete-time model. We identify analytically the intertemporal effects of refuge fields on the pest population and its susceptibility. The shape of the optimal refuge policy and whether or not pest susceptibility should be exhausted completely at the end of the time horizon depend crucially on the values of a cost premium of Bt seeds and the fitness cost of resistance (over-mortality of resistant pests) and are addressed via numerical simulations. We demonstrate the importance of modeling the dynamics of the biological system accurately, of defining a diploid (and not haploid) biological model, and of using a discrete-time (rather than continuous-time) framework. |
| Keywords: | Bt crop, optimal control, (non-)renewable resource, pest resistance management, refuge policy. |
| Date: | 2012–09 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:26138&r=env |
| By: | Benjamin, Olatunbosun |
| Abstract: | Financing of agriculture by commercial and non-commercial institutions in rural Sub-Saharan African in recent years has being relatively constant despite remarkable increase in the number of institutions operating within this area. This development may be attributed to how these institutions rate the business of agriculture and the risks involved. However the slow pace of financing sustainable agriculture such as bio-based economy in the presence of internationalization i.e. Clean Development Mechanism CDM and voluntary carbon market needs to be analyzed. Diverse literature are used in exploring the potential of “bio-based economy” with emphasizes not just on carbon sequestration but agricultural value added. The results suggest that if financial and non-financial institution re-evaluate and reassess their stands on sustainable farming, development of sustainable agriculture in rural areas is inevitable. Constraint to agriculture financing due to lack of access to credit may be reduced if innovative and sustainable smallholders are identified. |
| Keywords: | agricultural credit; carbon (CER);sustainable agriculture; collateral |
| JEL: | Q14 G21 Q57 |
| Date: | 2012–03–28 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:41313&r=env |
| By: | Stepanenko-Lypovyk, Bohdana |
| Abstract: | The results of simulation modeling of impact of green business financial mechanism elements on economic, social and ecologic development of Ukraine are presented in the article. Also the elements that most contribute to the establishment of green business and sustainable development are highlighted. |
| Keywords: | Sustainable development; green business; financial mechanism; simulation model |
| JEL: | C32 C23 |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:41130&r=env |
| By: | Gómez, L. y Buitrago, R. (Rimisp) |
| Abstract: | This document is the result of the Rural Territorial Dynamics Program, implemented by Rimisp in several Latin American countries in collaboration with numerous partners. The program has been supported by the International Development Research Center (IDRC, Canada). We authorize the non-for-profit partial or full reproduction and dissemination of this document, subject to the source being properly acknowledged. |
| Keywords: | gobernanza territorial, recursos naturales, Nicaragua |
| JEL: | D44 D82 L86 C72 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:rms:wpaper:114&r=env |
| By: | Gómez, I., Escobar, E. y Cartagena, R.E. (Rimisp) |
| Abstract: | This document is the result of the Rural Territorial Dynamics Program, implemented by Rimisp in several Latin American countries in collaboration with numerous partners. The program has been supported by the International Development Research Center (IDRC, Canada). We authorize the non-for-profit partial or full reproduction and dissemination of this document, subject to the source being properly acknowledged. |
| Keywords: | gobernanza territorial, recursos naturales |
| JEL: | D44 D82 L86 C72 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:rms:wpaper:113&r=env |
| By: | Peláez, A.V., Ríos Monzón, E. y Lemus, M.A. (Rimisp) |
| Abstract: | This document is the result of the Rural Territorial Dynamics Program, implemented by Rimisp in several Latin American countries in collaboration with numerous partners. The program has been supported by the International Development Research Center (IDRC, Canada). We authorize the non-for-profit partial or full reproduction and dissemination of this document, subject to the source being properly acknowledged. |
| Keywords: | Desigualdad, gobernanza, recursos naturales |
| JEL: | D44 D82 L86 C72 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:rms:wpaper:115&r=env |