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on Environmental Economics |
| By: | Tisdell, Clement A. |
| Abstract: | Most ecological and environmental resources are scarce. Ecological economics and environmental economics are concerned with ways in which these resources can be better managed to reduce economic scarcity or more generally, administered to achieve particular objectives most economically. The way in which environmental impacts from economic activity can add to economic scarcity is illustrated and the importance of accounting for opportunity costs in assessing environmental changes is stressed. Growing concerns in recent decades about environmental issues have been reflected in important international political initiatives relating to the environment and development. These initiatives are identified and the general sources of environmental change (natural and human-induced) are considered with most attention being given to the relationship between economic growth and the environment. Subsequently, changing views of economists about the relationships between economic growth, the stock of natural resources and the state of the environment are outlined and discussed. The views of classical and neo-classical economics are briefly examined but most attention is given to the views of neo-Malthusians and their concerns about the sustainability of economic growth. The extent of environmental change as a result of global economic growth and development has undoubtedly contributed to the growing importance of ecological and environmental economics. |
| Keywords: | economic scarcity, environmental change, global environmental arguments, neo-Malthusian economics, opportunity costs, sustainable economic development, sustainable economic growth., Environmental Economics and Policy, Q01, Q50, Q56, |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uqseee:140865&r=env |
| By: | Zuniga Gonzalez, Carlos Alberto; Toruño, Pedro Jose; Flores, Marina Ruiz |
| Abstract: | The study is focused into measure as the CCM-N program has impacted where the sustainable forest model and environmental are considered in the analysis. The Balance Carbon tool was used for measuring the climate change mitigation and the approach of the systematization experience for understanding and interpreting the learned lessons. The results show a positive impact on the carbon footprint for mitigating the of greenhouse emissions, however the experiences analyzed on the survey choice indicate that is necessary to make greater organizational efforts for improving the productive process where the forest system will be an axis for the economic activities. |
| Keywords: | Mitigation, Climate Change, Experiences Systematization, Sustainable Forest Management, Climate-Smart Agriculture, Agribusiness, Agricultural Finance, Community/Rural/Urban Development, Environmental Economics and Policy, F:18, Q:51, Q:56, O:13, |
| Date: | 2012–12–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:naunwp:140547&r=env |
| By: | Ivana Capozza; Joseph Curtin |
| Abstract: | Germany committed itself to challenging greenhouse gas (GHG) emission reduction targets to 2020 and beyond. It has implemented a composite mix of policy measures to achieve its climate change mitigation goals, including a range of market-based instruments. These measures have helped reduce domestic GHG emissions, as well as achieve other policy objectives. However, they have generated multiple (explicit and implicit) carbon prices, which can reduce the overall cost-effectiveness of climate change mitigation policy. This paper examines the carbon prices that have emerged from the implementation of three key market-based instruments in Germany: energy taxes, vehicle taxes and the EU Emissions Trading System. It also reviews the use of feed-in tariffs to promote electricity generation from renewable sources, with a focus on the implied GHG abatement costs and the interactions with other environmental policy instruments. This Working Paper relates to the 2012 OECD Environmental Performance Review of Germany: http://www.oecd.org/environment/environmentalcountryreviews/oecdenvironmentalperformancereviewsge rmany2012.htm<BR>L’Allemagne s’est engagée à respecter des objectifs ambitieux de réduction des émissions de gaz à effet de serre (GES) en 2020 et ultérieurement. Elle met en oeuvre tout un éventail de mesures pour atteindre ses objectifs d’atténuation du changement climatique, et notamment divers instruments économiques. Ces mesures ont contribué à réduire les émissions nationales de GES, et à atteindre d’autres objectifs. Cependant, il en découle plusieurs prix du carbone (explicites et implicites), qui risquent de nuire à l’efficacité globale par rapport aux coûts de son action. Le présent rapport examine les prix du carbone qui se dégagent de l’application de trois instruments économiques clés en Allemagne : les taxes sur l’énergie, les taxes sur les véhicules et le système d'échange de quotas d'émission de l’UE. Il aborde aussi le recours aux tarifs d’achat pour encourager la production d’électricité moyennant des sources renouvelables, en mettant l’accent sur les coûts implicites de réduction des émissions de GES et les interactions avec d’autres instruments de la politique d’environnement. Ce document de travail se rapporte à l’Examen environnemental de l'OCDE de l’Allemagne, 2012 : http://www.oecd.org/fr/environnement/examensenvironnementauxparpays/examensenvironnementaux delocdeallemagne2012.htm |
| Keywords: | Germany, emissions trading systems, environmentally related taxes, environmentally harmful subsidies, carbon price, Allemagne, taxes liées à l'environnement, système d’échange de droits d’émissions, subventions dommageables pour l’environnement, prix du carbone |
| JEL: | H23 Q48 Q52 Q54 Q58 |
| Date: | 2012–12–14 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:52-en&r=env |
| By: | Karl Steininger (Karl-Franzens University of Graz); Christian Lininger (Karl-Franzens University of Graz); Susanne Droege (SWP - German Institute for International and Security Affairs); Dominic Roser (Karl-Franzens University of Graz); Luke Tomlinson (University of Oxford) |
| Abstract: | The bottom-up national approaches to implement global climate policy under the current United Nations scheme raise concerns about carbon leakage and distributive justice. To limit these concerns, some propose switching to a consumption based emission accounting principle and implementing an associated policy reorientation. We analyse the potential merits of such a switch to a consumption-based approach, in the context of unilateral climate policies implemented by a border adjustment for the carbon content of imports and exports. First, we look into the relationship between the accounting principle and justice considerations. We distinguish the Responsibility Question (Do consumers' or producers' choices bring the emissions about?) and the Policy Base Question (Should consumption or production serve as the policy base?). Second, we investigate whether following a consumption- versus production-based policy implies a difference in terms of costeffectiveness in achieving the environmental target. We find that consumers and producers are jointly responsible for emissions. We also find that from the perspective of justice this does not settle the question whether consumption or production ought to serve as the climate policy base. Rather, this depends on the distributive consequences of switching to consumption-based accounting. We find that (global) costeffectiveness is currently higher when unilateral climate policy by industrialized countries is consumption-based, and accompanied by clean technology transfer. If implemented in terms of border carbon adjustments, justice considerations suggest channeling import tax revenues to developing and emerging economies. We also find that the carbon border adjustment switch need not include export rebates, if these are difficult on political grounds. |
| Keywords: | post 2012 climate policies, CBDR, competitiveness, carbon leakage, border carbon adjustments |
| JEL: | Q56 F42 |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:grz:wpaper:2012-06&r=env |
| By: | Tisdell, Clement A. |
| Abstract: | Summarises some of the predicted natural consequences of increasing concentrations of greenhouse gases in the atmosphere. Changes in temperature, climates, physical and chemical impacts on the biosphere as well as biodiversity loss are considered. Then some of the expected social and economic consequences of global warming are discussed. Subjects considered are the impacts of global warming on bio-industries and social conditions, the economic costs of greenhouse gas emissions and the effects of climate change. Attention subsequently turns to the environmental Kuznets curve and the inappropriate use of the relationship. For example, it is stressed that reducing the intensity of greenhouse gas emissions in relation to GDP does not necessarily reduce total greenhouse gas emissions. Furthermore, even if they are reduced, greenhouse gases can continue to accumulate in the atmosphere. Some suggestions are then made about how the global warming problem might be addressed. |
| Keywords: | adaptation to global warming, biodiversity loss, bio-industries, climate change, economics costs of global warming, environmental Kuznets curve, global warming., Environmental Economics and Policy, Q01, Q54, Q57, |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uqseee:140867&r=env |
| By: | Daniels, K.A.; Huppert, H.E.; Neufeld, J.A.; Reiner, D. |
| Abstract: | The Earth's climate is changing and the release of carbon dioxide (CO2) is recognised as the principal cause. To meet legally binding targets, UK GHG emissions need to be cut by at least 80% of the 1990 levels by 2050. With an increase in future fossil fuel use, Carbon Capture and Storage (CCS) is the only method of meeting these targets. Some key challenges face the deployment of CCS including cost, uncertainty of CCS deployment, the risks of long-term CO2 storage, public communication and scale. Research at the University of Cambridge is resolving these issues and assisting the deployment of CCS technology. The right regulatory framework also needs to be set so that the technology is commercially deployed. The current UK policy framework for CCS is outlined in this document and the immediate barriers to deployment are highlighted. The ongoing CCS research taking place primarily at the University of Cambridge is described. There are many steps that need to be taken if CCS deployment is to ultimately succeed; this document attempts to highlight these steps and address them. |
| Keywords: | Climate change; atmospheric greenhouse gas emissions; Carbon Capture and Storage (CCS); the CCS Roadmap; Electricity Market Reform; Carbon Capture Technologies; Carbon Sequestration; storage reservoir processes |
| JEL: | O13 Q40 Q41 Q42 Q48 Q51 Q54 Q55 Q58 |
| Date: | 2012–12–19 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:1257&r=env |
| By: | Lynette Molyneaux (Department of Economics, University of Queensland); Craig Froome (Business School, University of Queensland); Liam Wagner (Department of Economics, University of Queensland); John Foster (Department of Economics, University of Queensland) |
| Abstract: | With carbon dioxide the major contributor to anthropogenic climate change, being required to reduce the carbon emissions from burning coal for electricity presents a systemic shock to Australian power. The Australian government is committed to the development of its coal seam gas resources for export to lucrative world markets and to transition domestic power generation to greater resilience by moving away from a reliance on coal to lower-emissions intensive gas. Using a commercially available modelling package, PLEXOS, we model what a transition to gas fired generation in the year 2035 would deliver and compare that to a transition to power from renewable technologies. The results indicate that a transition to gas fired generation reduces emissions only marginally and that wholesale prices will be higher than the renewable energy option. |
| Keywords: | RESILIENCE, ELECTRICITY, RENEWABLE ENERGY, DISTRIBUTED GENERATION |
| JEL: | Q40 Q42 Q47 |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uqeemg:13-2012&r=env |
| By: | Marshall, Elizabeth P.; Weinberg, Marca |
| Abstract: | Over the past few decades, conservation programs have provided incentives to farmers to make production decisions that place a priority on environmental improvements in addition to production of commodities (Claassen et al., 2007). More recently, markets have been developed or proposed that allow farmers to sell “credits” for environmental improvements in water quality, carbon sequestration, wetlands restoration, and other areas. These markets use an environmental baseline to help determine whether the proposed improvements qualify for market credits, and, if so, the number that should be awarded. Selection of a baseline emissions level is often a critical and contentious element of program design for carbon or water-quality credit markets. Baselines help ensure that credits generated for sale through markets are “additional” (i.e., the environmental improvements qualifying for offset credits would not have taken place in the absence of the market or program incentive). Additionality is frequently cited as a requirement in defining the integrity of environmental improvement credits (Three-Regions Offsets Working Group, 2010). Giving credits or payments for changes that have already been implemented, or are likely to be implemented soon even in the absence of the program, can undermine the environmental gains expected from the program. Due to the complexity and costs associated with defining, measuring, and verifying environmental baseline levels across heterogeneous landscapes, program managers may face a tradeoff between the precision with which changes in environmental performance can be estimated and the cost of refining those estimates. Balancing these two considerations is often the motivation behind selection of a particular baseline in environmental market design. Other market design considerations include those related to program eligibility restrictions, scope of measurement (i.e., accounting for leakage), offset permanence, and measurement uncertainty.1 This brief focuses exclusively on baselines to clarify their role in the larger context of offset market design. |
| Keywords: | Demand and Price Analysis, Environmental Economics and Policy, |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uerseb:138922&r=env |
| By: | Honma, Satoshi |
| Abstract: | This study computes and analyzes the environmental and economic efficiencies of 31 Asia-Pacific countries and regions in 2007, using the slack-based measurement (SBM) data envelopment analysis (DEA) approach. Four economies, Brunei, Macao, Samoa, and Singapore, are found to be environmentally efficient. Of this group, only Brunei and Samoa are found to be economically efficient. We subsequently examined an environmental Kuznets curve type relationship between the environmental efficiency and per capita income. The empirical results show that a U-shaped relationship exists and the turning point per capita income is 4,239 US dollar. |
| Keywords: | Data envelopment analysis; environmental efficiency; environmental Kuznets curve |
| JEL: | Q54 O4 |
| Date: | 2012–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:43361&r=env |
| By: | Tisdell, Clement A. |
| Abstract: | Provides some background on concerns about the sustainability of agriculture, outlines and discusses views about what constitutes sustainable agriculture and contrasts the sustainability of modern industrialised agriculture with that of traditional agriculture. Then the question is considered (taking into account the available evidence) whether organic agriculture is more sustainable than non-organic agriculture. Barriers to switching from non-organic to organic agriculture are mentioned. The development of agriculture usually has a serious negative impact on wild biodiversity. Whether or not more intensive agriculture would reduce the negative ecological footprint is unclear but many scientists believe it will do this. Globally, there has been a rapid expansion in the area planted with GM crops. Reasons are given why yields and returns from these crops may not be sustained, and why they may result in genetic losses liable to jeopardise sustainable development. Nevertheless, agriculturalists may still have an incentive to adopt unsustainable agroecosystems for reasons outlined. While genetic losses may be a threat to the long-term sustainability of agriculture, increasing scarcity of natural resources used in agriculture, such as water, and climate change may be more immediate challenges to the sustainability of agricultural production. |
| Keywords: | biodiversity loss, genetically modified crops, industrialised modern agriculture, organic agriculture, sustainable agriculture, sustainable development, Agricultural and Food Policy, Crop Production/Industries, Environmental Economics and Policy, Q01, Q16, Q57, |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uqseee:140549&r=env |
| By: | Nicholas J. Sanders (Department of Economics, The College of William and Mary) |
| Abstract: | In 1998, a number of polluting industries, including fossil fuel power plants, were added to the list of firms publicly reporting pollution releases in the Toxics Release Inventory (TRI). This caused a large increase in reported toxic pollution, and a corresponding decrease in median housing prices of 2-3 percent in impacted areas. Contrary to prior findings that TRI information does not influence household actions, I find the additional TRI data caused households to revise priors on ambient pollution levels. This implies that, even with market-based environmental regulation, there remains a role for government as provider of information on environmental conditions. |
| Keywords: | pollution, hedonic estimation, Toxics Release Inventory |
| JEL: | D62 H23 Q50 Q53 |
| Date: | 2012–12–11 |
| URL: | http://d.repec.org/n?u=RePEc:cwm:wpaper:128&r=env |
| By: | Erik Stam; Neil Thompson; Andrea Herrmann; Marko Hekkert |
| Abstract: | Traditionally, regulations are seen as harmful for the starting and growing of firms. However, strict environmental regulation can also trigger the discovery and introduction of clean technologies, and this innovation might improve the competitiveness of the firm (the so-called Porter hypothesis). This project focuses on the environmental regulation paradox in the context of new venture growth. The key questions are: 1) to what extent do new ventures perceive environmental regulation to be a bottleneck; and 2) how does environmental regulation affect the growth of clean tech ventures? The characteristics of a panel of new ventures are analyzed during their emergence, and in particular the effect of environmental regulation on the subsequent growth of these new ventures. These analyses are also performed on a subsample of firms that is especially liable to environmental regulations, namely clean tech ventures. The empirical evidence shows the paradox of environmental regulation for clean tech ventures: they more often perceive this to be a bottleneck, but environmental regulation also seems to drive their growth. Our interpretation of the environmental regulation paradox is that environmental regulation should be treated as a barrier to growth: entrepreneurs that aim to expand their business in markets that are sensitive to environmental regulation face these regulations as a bottleneck for their activities, but this necessary evil informs them how to successfully expand in these markets giving them a competitive edge over other less well informed firms. Without this hurdle they would probably not be sufficiently informed about the possibilities and impossibilities in these markets. This especially counts for clean tech ventures, but also for the group of non-clean tech ventures that is active on markets liable to environmental regulations. This interpretation does justice to the initial Porter hypothesis - environmental regulation can trigger innovation that may partially or more than fully offset the costs of complying with them – as environmental regulation is both perceived as a cost, but in the end seems to more than fully offset these costs indicated by the growth inducing effect of environmental regulation. |
| Date: | 2012–12–18 |
| URL: | http://d.repec.org/n?u=RePEc:eim:papers:h201217&r=env |
| By: | Sagasta Elorza, Amagoia; Usategui Díaz de Otalora, José María |
| Abstract: | We analyze optimal second-best emission taxes in a durable good industry under imperfect competition. The analysis is performed for three different types of emissions and for situations where the good is rented, sold or simultaneously sold and rented. We show, for durable goods that may cause pollution in a period (or in periods) different from the production period, that the expected overall emission tax and the expected total marginal environmental damage per unit produced in each period are the relevant variables to consider in the analysis of overinternalization and in the comparison of optimal emission taxes for renting, selling and renting-selling firms. Our results allow to extend some previous results in the literature to these durable goods and provide an adequate perspective on some other results (in particular, we point out the limitations of focusing only, for those durable goods, on the level and effects of the optimal emission tax in the production period). |
| Keywords: | optimal emission taxes, overinternalization,, durable good, emission types, imperfect competition |
| JEL: | Q58 Q53 H23 L13 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ehu:dfaeii:9178&r=env |
| By: | Cavagnac, Michel; Cheikbossian, Guillaume |
| Abstract: | This paper analyzes the problem of international environmental cooperation as a coalition formation game. For this purpose, we develop a simple model with three countries of unequal size. Strate- gic interactions between those countries come from the imperfect competition among producers in global markets and from the transboundary pollution generated by the ?rms. To capture e¢ ciency gains from coordinating policies, countries can join a coalition and sign an international environmental agreement. The equilibrium coalition structure then depends on the country-size asymmetry and on the marginal environmental damage. Interestingly, we show that the grand coalition is less likely to emerge as an equi- librium outcome once two countries form a subcoalition. Furthermore, the further enlargement of the initial subcoalition can be blocked either by the outsider or by the insiders. |
| Keywords: | Tax coordination, Transboundary Pollution, International Trade, Oligopoly, Coalition Formation |
| JEL: | F55 H23 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:26607&r=env |
| By: | Eugenio Figueroa B.; Roberto Pasten C. |
| Abstract: | This brief paper proposes an analytical method for estimating the economic value of forest ecosystems in supplying climate regulation. If, as argued by several authors, forests ecosystems serve as hedging against climatic risk, then natural ecosystems may act as substitutes for market insurance. This ecosystem service of climate regulation can be economically valued by the marginal reduction in the willingness of risk-averse individuals to pay to avoid risk. We formally develop this novel methodology. As an illustration, we provide an estimate of the insurance value of climate regulation provided by forests using data on insurance premiums paid by local Chilean farmers. The insurance value of climate regulation is estimated to be approximately USD 0.0733 per hectare of forest. The framework that is proposed in this paper is useful and relevant for the cost-benefit analysis of natural resource conservation investments. |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:udc:wpaper:wp372&r=env |
| By: | Aghion, Philippe; Dechezleprêtre, Antoine; Hemous, David; Martin, Ralf; Van Reenen, John |
| Abstract: | Can directed technical change be used to combat climate change? We construct new firm-level panel data on auto industry innovation distinguishing between "dirty" (internal combustion engine) and "clean" (e.g. electric and hybrid) patents across 80 countries over several decades. We show that firms tend to innovate relatively more in clean technologies when they face higher tax-inclusive fuel prices. Furthermore, there is path dependence in the type of innovation both from aggregate spillovers and from the firm's own innovation history. Using our model we simulate the increases in carbon taxes needed to allow clean to overtake dirty technologies. |
| Keywords: | automobiles; Climate Change; Directed Technical Change; Innovation |
| JEL: | L62 O13 O3 |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:9267&r=env |
| By: | Brahmanand Mohanty (Asian Development Bank Institute (ADBI)); Martin Scherfler; Vikram Devatha |
| Abstract: | The Asia-Pacific region is witnessing rapid economic growth. Along with rising incomes, the lifestyles of the large middle class are moving quickly towards a buy-and-discard consumer model that involves carbon-intensive products and services. These increase dependency on the Earth’s finite natural resources and simultaneously produces waste, putting a significant strain on the environment. Such lifestyles, coupled with scarce resources and frequent natural hazards associated with climate change, pose serious threats to the future of the planet. Developed countries with high footprint per capita are under pressure to adjust their lifestyles that respect the Earths’ carrying capacity. As far as countries in the Asia and Pacific region are concerned, mere technological solutions such as improving production efficiency will not be adequate to address climate change; a paradigm shift to more resource-efficient and low-carbon lifestyles, that promote inclusive and efficient consumption is the need of the hour. Several examples of good practices and community initiatives can be found around the world, but these have yet to be brought to the mainstream in order to achieve tangible results. Governments and policy makers in the Asia-Pacific can join hands with businesses and civil society to accelerate this transition—from a consumption-oriented economic paradigm, to a more sustainable way of production and consumption. This paper attempts to identify lifestyle changes at the individual level, and behavioral changes at the community level that could offer high carbon abatement potential. It also provides some good practices of public policies and policy recommendations that can be pivotal in making a business case of low-carbon and eco-efficient lifestyles, strengthening collective awareness, and influencing public decision-making in developing countries in Asia. |
| Keywords: | Societal Behavior Changes, Local climate strategy, lifestyle changes, Asia, the Asia-Pacific |
| JEL: | Q2 Q21 Q28 F18 H23 |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:eab:develo:23379&r=env |
| By: | Takao Asano; Noriaki Matsushima |
| Abstract: | This paper analyzes the situation in which a national government introduces environmental regulations. Within the framework of an international duopoly with environmental regulations, this paper shows that an environmental tax imposed by the government in the home country can induce a foreign firm with advanced abatement technology to license it to a domestic firm without this technology. Furthermore, when the domestic firmfs production technology is less efficient than that of the foreign firm, the foreign firm may freely reveal its technology to the domestic firm. These improvements through the voluntary transfer of technology support the Porter hypothesis, which states that environmental regulations have positive impacts on innovation. |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:dpr:wpaper:0862&r=env |
| By: | Meredith Fowlie; Mar Reguant; Stephen P. Ryan |
| Abstract: | We assess the long-run dynamic implications of market-based regulation of carbon dioxide emissions in the US Portland cement industry. We consider several alternative policy designs, including mechanisms that use production subsidies to partially offset compliance costs and border tax adjustments to penalize emissions associated with foreign imports. Our results highlight two general countervailing market distortions. First, following Buchanan (1969), reductions in product market surplus and allocative inefficiencies due to market power in the domestic cement market counteract the social benefits of carbon abatement. Second, trade exposure to unregulated foreign competitors leads to emissions “leakage” which offsets domestic emissions reductions. Taken together, these forces result in social welfare losses under policy regimes that fully internalize the emissions externality. In contrast, market-based policies that incorporate design features to mitigate the exercise of market power and emissions leakage can deliver welfare gains. |
| JEL: | L5 Q5 |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:18645&r=env |
| By: | Prowse, Martin; Weldegebriel, Zerihune Berhane |
| Abstract: | Ethiopia is vulnerable to climate change due to its limited development and dependence on agriculture. Social protection schemes like the Productive Safety Net Programme (PSNP) can play a positive role in promoting livelihoods and enhancing households’ risk management. This article examines the impact of the PSNP by using Propensity Score Matching to estimate the effect on income diversification. The results show receiving transfers from the PSNP, on average, increases natural resource extraction (one component of off-farm income). While these results should be treated with caution, they suggest the PSNP may not be helping smallholders diversify income sources in a positive manner for climate adaptation. The article concludes by arguing for further investigation of the PSNP’s influence on smallholders’ adaptation strategies. |
| Keywords: | Ethiopia; climate change |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:iob:wpaper:2012011&r=env |
| By: | Natacha Raffin (University Paris Ouest Nanterre la Défense, EconomiX and Climate Economics Chair.); Thomas Seegmuller (Aix-Marseille University (Aix-Marseille School of Economics), CNRS and EHESS.) |
| Abstract: | We analyze the interplay between longevity, pollution and growth. We develop an OLG model where longevity, pollution and growth are endogenous. The authorities may provide two types of public services, public health and environmental maintenance, that participate to increase agents’ life expectancy and to sustain growth in the long term. We show that global dynamics might be featured by a high growth rate equilibrium, associated with longer life expectancy and a environmental poverty trap. We examine changes in public policies: increasing public intervention on health or environmental maintenance display opposite effects on global dynamics, i.e. on the size of the trap and on the level of the stable balanced growth path. On the contrary, each type of public policy induces a negative leverage on the long run rate of growth. |
| Keywords: | Life expectancy; Pollution; Health; Growth. |
| JEL: | I15 O44 Q56 |
| Date: | 2012–10–30 |
| URL: | http://d.repec.org/n?u=RePEc:aim:wpaimx:1230&r=env |
| By: | Oral, Isil; Santos, Indhira; Zhang, Fan |
| Abstract: | This paper analyzes the differential impact of climate change policies on employment in Eastern Europe and Central Asia. In particular, the paper examines (i) how vulnerable labor markets are in Eastern European and Central Asian countries to future carbon regulation, and (ii) what countries can do to mitigate some of the potential negative effects of these regulatory changes on employment. In many aspects, the nature of the shock associated with climate regulation is similar to that associated with an increase in energy prices. Constraints on carbon emissions put a price on climate-damaging activities and make hydrocarbon-based energy production and consumption more expensive. As a result, firms in energy-intensive industries may react to higher energy prices by reducing production, which in turn would lead to lower employment. In the presence of frictions in labor markets, these sector shifts will cause resources to be unemployed, at least in the short term. Using principal component analysis, the paper finds that Eastern European and Central Asian countries vary greatly in their vulnerability and adaptability of employment to carbon regulation. Since the economy takes time to adjust, policy-makers will need to ensure that the incentives are there for new firms to emerge and employ workers, and that workers have the skills to respond to that demand. Moreover, governments have a role to play in ensuring that workers that are displaced have a proper safety net that will not only help in protecting their welfare, but will also allow workers to make more efficient labor market transitions. |
| Keywords: | Labor Markets,Energy Production and Transportation,Markets and Market Access,Labor Policies,Climate Change Economics |
| Date: | 2012–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6294&r=env |
| By: | Muhammad, Shahbaz; Qazi Muhammad, Adnan Hye; Aviral Kumar, Tiwari |
| Abstract: | This study examines the linkages among economic growth, energy consumption, financial development, trade openness and CO2 emissions over the period of 1975Q1-2011Q4 in the case of Indonesia. The stationary analysis is performed by using Zivot-Andrews structural break unit root test and the ARDL bounds testing approach for a long run relationship between the series in the presence of structural breaks. The causal relation between the concerned variable is examined by the VECM Granger causality technique and robustness of causal analysis is tested by innovative accounting approach (IAA). Our results confirm that the variables are cointegrated; it means that the long run relationship exists in the presence of structural break stemming in the series. The empirical findings indicate that economic growth and energy consumption increases CO2 emissions, while financial development and trade openness compact it. The VECM causality analysis has shown the feedback hypothesis between energy consumption and CO2 emissions. Economic growth and CO2 emissions are also interrelated i.e. bidirectional causality. Financial development Granger causes CO2 emissions. The study opens up a new policy insights to control the environment from degradation by using energy efficient technologies. Financial development and trade openness can also play their role in improving the environmental quality. |
| Keywords: | Growth; Energy; Financial Development; CO2 Emissions |
| JEL: | Q4 |
| Date: | 2012–12–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:43294&r=env |
| By: | Juvancic, Luka; Travnikar, Tanja; Glavan, Matjaz; Cvejic, Rozalija; Pintar, Marina |
| Abstract: | The paper presents results of a spatial analysis of agri-environmental (A-E) measures in Slovenia. Spatial targeting and spatial patterns of A-E schemes are analyzed by a combination of exploratory spatial data analysis and spatial econometrics. Results suggest that A-E schemes in Slovenia are poorly spatially targeted against environmental priorities and needs in terms of water and biodiversity protection. This can be attributed to the fact that the most widely implemented A-E schemes in the country are implemented horizontally, with no spatially explicit criteria. Exploratory Spatial Data Analysis reveals spatial clusters of participation in A-E schemes, which is additionally confirmed by the results of the spatial econometric analysis. Participation in A-E schemes in general decreases with the average farm size of the area, and increases with per hectare CAP Pillar I payment rights and EAFRD payments. On the other hand, results of the spatial econometric analysis suggest that participation in organic farming appears to be a rational choice in areas with prevailing extensive, grassland-based farming. Results therefore suggest that farms maximize revenues from A-E schemes. Spatial clustering of areas with respect to the participation in A-E schemes occurs also in the absence of explicit spatial targeting and is closely linked with potential revenues from this source. |
| Keywords: | Rural development policy 2007-2013, Agri-environmental payments, spatial econometrics, Agricultural and Food Policy, Environmental Economics and Policy, Q180, R580, C2, |
| Date: | 2012–10–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa132:139491&r=env |
| By: | Huanxiu GUO (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Sébastien Marchand (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I) |
| Abstract: | In this case study, we attempt to re-evaluate the performance of organic farming in developing countries using the indicator of Environmental Efficiency (EE) within the framework of Stochastic Frontier Analysis (SFA). A set of plot-season level panel data was collected from an NGO-led organic paddy rice project in southern China. This original dataset is used to calculate EE scores across both the organic and conventional plots. Our two-stage analysis reveals two essential points. First, in poor rural areas, organic farming doesn't systematically reduce the pure nitrogen input for paddy rice production. In order to maintain the yield, organic farmers may apply the same, or an even greater quantity of pure nitrogen than conventional farmers. Second, organic farming loses its environmental efficiency in the scaling up period due to the excessive pure nitrogen input. Therefore, we argue that beyond the simple substitution of chemical fertilizer by organic fertilizer, more sustainable organic farming necessitates additional e fforts on the control of nutrient input. |
| Keywords: | Organic farming;Environmental efficiency;Stochastic frontier analysis;China |
| Date: | 2012–12–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00763675&r=env |
| By: | Bangsund, Dean A.; Hodur, Nancy M. |
| Keywords: | Environmental Economics and Policy, Public Economics, |
| Date: | 2012–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nddaae:139322&r=env |
| By: | Tisdell, Clement A. |
| Abstract: | The importance of taking account of the total economic value of ecosystems is stressed and the possible reasons why the Millennium Ecosystem Assessment (2005) emphasised the importance of ecosystem services for biodiversity conservation is discussed. It is suggested that the Millennium Ecosystem Assessment does not give enough attention to the disservices association with some ecosystems nor to the comparisons of the value of alternative ecosystems. Reasons why it is important to estimate the total economic value of ecosystems are outlined. It is argued that the economic valuation of ecosystems is of little value unless it compares the economic value of alternative ecosystems or forms of land use. Most published economic valuations of ecosystems fail to do this or only do it to a very limited extent. The cost of replacing ecosystem services if an ecosystem is lost is sometimes used to value its services. In most cases (but not all cases), this tends to over value the loss. This is illustrated using some simple graphs. There is also the further complication that if one type of ecosystem is replaced by another form of land or aquatic use, some ecosystem services may continue to be supplied, possibly in reduced quantities or qualities. In such cases, assuming that the pre-existing services are totally lost and need to be replaced completely overstates the economic value lost, or in other words, the value of retaining an existing ecosystem. |
| Keywords: | biodiversity conservation, cost of replacement method of valuation, economic valuation of ecosystems, ecosystem services, Millennium Ecosystem Assessment, total economic valuation, Environmental Economics and Policy, Q01, Q51, Q57, |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uqseee:140550&r=env |
| By: | Wilfried Ehrenfeld |
| Abstract: | This discussion paper provides the contextual framework of the cumulative disser-tation on “Climate Change and Corporate Innovation Processes” at the Technical University of Dresden. It consists of six already published papers and articles. Because of the present public discussion on climate change, European industrial companies face new requirements. This mainly includes new claims, which are imposed on them by the enterprises’ operational environment. One way to respond to these new claims is adaptation through innovation. The overall objective of this thesis is to investigate how the perception of climate change on the part of stakeholders affects corporate innovation processes. In this context, these issues are examined both theoretically and empirically. The thesis thus contributes to various literary strands in the area of “entrepreneurial strategies for adapting to climate change.” |
| Keywords: | climate change, innovation, CO2, EU ETS, risk |
| JEL: | Q55 O33 O38 Q54 O31 |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:iwh:dispap:13-12&r=env |
| By: | Tisdell, Clement A. |
| Abstract: | After touching on the concerns of natural scientists about biodiversity loss, this article argues that it is a mistake to believe that there are only losses of biodiversity. The process of changes in the stock of biodiversity is more complex. Furthermore, it is pointed out that not all genetic material is an economic asset. Also, it is contended that not all genetic material is natural. Some of the genetic stock is of a heritage type and a portion has recently been developed by human beings. Improved conceptualisation of the stock of biodiversity is needed. Some of the ways are listed in which economics is relevant to issues involving biodiversity conservation. General economic factors, such as market extension and economic growth, which result in loss of genetic diversity among domesticated organisms are outlined. China’s recent experience with biodiversity loss highlights the importance of these factors. Some important reasons why economic factors result in biodiversity loss in the wild are identified and reasons are given why economic systems conserve less biodiversity than is ideal. Before concluding, the subject is discussed of what genetic material and other components of biodiversity should be conserved given economic constraints on what can be conserved. |
| Keywords: | agricultural biodiversity, biodiversity change, biodiversity economics, biological extinction, China, economics of biodiversity loss, genetic diversity as an asset., Environmental Economics and Policy, Q57, Q10, |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uqseee:140863&r=env |
| By: | Iverson, Terrence |
| Abstract: | The paper derives an explicit formula for the near-term carbon price in a dynamic stochastic general equilibrium climate model in which agents employ arbitrary non-constant time preference rates. The paper uses a simplified version of the model in Golosov et al. (2011), though we argue that the added assumptions are unlikely to matter for our conclusions. The formula is derived first under the assumption that the initial decision-maker has a commitment device, then solving for the unique subgame perfect equilibrium. Somewhat remarkably, the near-term carbon price is the same in both cases. We further show that the near-term carbon price remains unchanged for all potential beliefs about the time preference structure of future generations. It follows that concerns about time inconsistency can be safely ignored when applying the derived formula. The carbon price is the same as the Pigouvian tax in the equilibrium with commitment, and it is bigger than the Pigouvian tax in the equilibrium without commitment provided damages are sufficiently persistent. The formula reduces to the carbon price formula in Golosov et al. (2011) when discounting is constant, and it reduces to the carbon price formula in Gerlagh and Liski (2012) when discounting is quasi-hyperbolic. |
| Keywords: | hyperbolic discounting; time inconsistency; optimal carbon price |
| JEL: | Q5 |
| Date: | 2012–12–13 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:43264&r=env |
| By: | Aguilar Ibarra, Alonso; Sanchez Vargas, Armando; Martinez Lopez, Benjamin |
| Abstract: | This paper has a two-fold objective. First, to estimate the changes in landings value by 2030 of two Mexican coastal fisheries: shrimp and sardines as a consequence of climate change. And second, to discuss the implications for food security of such impacts. We estimated output equations using a dynamic panel model for the Mexican fisheries sector with data from 1990 through 2009. Scenarios were generated for the expected changes in fish production. Our results suggest that shrimp production will be negatively affected in about 1.1% in decreasing catch for every 1% of temperature increase by 2030. In contrast, the sardine fishery would benefit by approximately a 4% increase in production for every 1% increase in temperature. For the shrimp fishery, losses amount from US$ 95 million (discount rate = 4%) to US$ 444 million (discount rate = 1%). For the sardine fishery, gains range from US$ 46 million (discount rate = 4%) to US$ 184 million (discount rate = 1%). Most losses/gains would be observed in the NW Mexican Pacific, where the fishing sector has an important role in the local economy and represents therefore a risk to food security on a local basis. -- |
| Keywords: | monetary estimation,climate change,Mexico,shrimp fishery,sardine fishery,food security |
| JEL: | Q51 C23 Q22 Q54 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwedp:201264&r=env |
| By: | Linda Kleemann; Awudu Abdulai |
| Abstract: | The recent empirical literature on economic sustainability of certified export crops shows that certification standards that enhance yields are important for improving farm revenues and farmer welfare. However, limited evidence exists on the impact of organic certification on the adoption of agro-ecological practices. In this study, we use unique farm-level data from Ghana to examine the impact of organic certification on the use of agro-ecological practices to improve environmental conditions, as well as how using these measures affect farm outcomes such as return on investment. In the former, we utilize an endogenous switching regression approach to account for selection bias due to unobservable factors. Our empirical results reveal that organic certification increases agro-ecological practice use, although from a very low starting point. Using a generalized propensity score approach, we show that there is a nonlinear relationship between the intensity of agro-ecological practice use and return on investment |
| Keywords: | organic agriculture, certification, agro-ecological practices, return on investment, impact assessment |
| JEL: | O13 Q13 Q17 Q56 |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1816&r=env |
| By: | Liam Wagner (Department of Economics, University of Queensland); Lynette Molyneaux (Department of Economics, University of Queensland); John Foster (Department of Economics, University of Queensland) |
| Abstract: | We seek to evaluate the projection that a carbon price will reduce emissions at least cost by inducing a shift of generation from coal-fired to gas-fired plants. Modelling of Australia’s National Electricity Market in 2035 is undertaken using Australian Energy Market Operator assumptions for fuel costs, capital costs and demand forecasts and an electricity market simulation package which uses deterministic linear programming techniques, and transmission and generating plant data, to optimise the power system and determine the least cost dispatch of generating resources to meet a given demand. We find that wholesale market prices increase substantially due to the increased costs of gas over goal as an input fuel and carbon price but also as a result of infra-marginal rents and strategic behaviour by generators to maintain margin as well as pass through additional costs. |
| Keywords: | Natural Gas, Electricity Markets |
| JEL: | Q40 |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uqeemg:11-2012&r=env |
| By: | Michela Sironi (Department of Economics (University of Verona)); Federico Perali (Department of Economics (University of Verona)); Maikol Furlani (Department of Economics (University of Verona)); Alexandrina Ioana Scorbureanu (Department of Economics (University of Verona)) |
| Abstract: | The study aims to assess the technical, environmental, economic and financial viability of establishing an industrial and logistic park in Jenin. |
| Keywords: | development, sustainability, growth, feasibility, jobs |
| JEL: | O |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:ver:wpaper:36/2012&r=env |
| By: | Coon, Randal C.; Hodur, Nancy M.; Bangsund, Dean A. |
| Keywords: | Land Economics/Use, Production Economics, Resource /Energy Economics and Policy, |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nddaae:140122&r=env |
| By: | Konov, Joshua Ioji / JK |
| Abstract: | The best model for expanding Alternative Energies and Environmental Protection globally is through using market equilibrium, whereas governmental subsidies and fiscal stimulus to be just supplementary. Market equilibrium depends of matching consumption demand and price deleveraging that could be achieved only by changing market (i.e. economic) agents from presently used trickle-down economics that stimulate big business and big investors to a more market related economics (Marketism) that would stimulate Small & Medium Businesses and Investors (SME&I) boost business activities and related employment, fiscal reserves and over all market utilized consumption. |
| Keywords: | environment; market economics; globalization |
| JEL: | L1 |
| Date: | 2012–10–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:43373&r=env |
| By: | Julie A. Nelson |
| Abstract: | Many public debates about climate change now focus on the economic "costs" of taking action. When called on to advise about these, many leading mainstream economists downplay the need for care and caution on climate issues, forecasting a future with infinitely continued economic growth. This essay highlights the roles of binary metaphors and cultural archetypes in creating the highly gendered, sexist, and age-ist attitudes that underlie this dominant advice. Gung-ho economic growth advocates aspire to the role of The Hero, rejecting the conservatism of The Old Wife. But in a world that is not actually as safe and predictable as they assume, the result is guidance from The Fool. Both intellectual and cultural change are necessary if the voice of The Wise Grandmother (which may come through women or men) is to—alongside The Hero—receive the attention it deserves. |
| Date: | 2012–09 |
| URL: | http://d.repec.org/n?u=RePEc:dae:daepap:12-04&r=env |
| By: | Mirzabaev, Alisher; Tsegai, Daniel W. |
| Abstract: | Higher weather volatility may be reflected in higher incidences of weather shocks. Weather shocks could potentially affect the supply of agricultural commodities and their prices. In this study, the effects of weather shocks on agricultural commodity prices in Central Asia are investigated at the provincial scale using monthly data for the period of 2000-2010. The study uses an innovative estimation method, where the idiosyncratic components of the variables are analyzed using Feasible Generalized Least Squares (FGLS) panel regression in the presence of cross-sectional dependence and serial autocorrelation. The analysis indicates that weather volatility and, especially, the fluctuations in the availability of irrigation water have statistically significant effects on wheat and potato prices in Central Asia. Negative shocks, involving lower than usual temperatures and precipitation amounts, could create favorable conditions for higher wheat prices in the region. Lower availability of irrigation water may encourage irrigation-dependent countries of the region to aggressively raise wheat stocks to face expected supply shortfalls, thus leading to higher regional wheat prices. This effect could be further aggravated by negative impacts of lower irrigation water availability on wheat yields. In order to counteract such developments, it is necessary to devise effective grain storage policies. Regional free trade arrangements in agricultural commodities will also be important to minimize price volatility resulting from weather shocks. For protecting agricultural producers, weather insurance schemes could be introduced. It would be also necessary to make investments into crop breeding and agronomic research for developing new crop cultivars resistant to biotic and abiotic stresses, and on promoting water-efficient crop production technologies. |
| Keywords: | weather and price shocks, Central Asia, Agricultural and Food Policy, Agricultural Finance, Crop Production/Industries, Demand and Price Analysis, Environmental Economics and Policy, Land Economics/Use, Production Economics, Resource /Energy Economics and Policy, |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ubzefd:140769&r=env |
| By: | Tisdell, Clement A. |
| Abstract: | Indicates some of the different concepts of sustainable economic development and raises queries about how much present generations are concerned with future generations. A variety of conditions (ranging from very weak to very strong) have been suggested for achieving sustainable development. These are outlined. The prospect that the accumulation of man-made capital may result in unsustainable economic development is discussed and the welfare consequences of the conversion of natural capital are considered in a historical context. This leads on to a discussion of different types of capital: man-made and natural. Division of the total stock of capital into these categories is now common. However, there appears to be a gap because heritage capital (for example, varieties of crops and animals developed by human interference in nature) do not fit well into this framework. Some reasons why economic production may not be maintained or maximised are considered. They include the presence of externalities, open access to resources and the presence of public goods and bads. It is pointed out that it is undesirable to sustain everything, including all industries. While it might seem appealing to seek sustainable strategies that satisfy multiple criteria (such as economic viability, political and social acceptability and ecological sustainability), it is possible that such strategies rarely exist, if at all. |
| Keywords: | Concern for future generations, externalities, heritage capital, human capital, man-made physical capital, multiple objectives for sustainability, open-access resources, public goods and bads, sustainable development, sustainable economic activities., Environmental Economics and Policy, Q01, |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uqseee:140866&r=env |
| By: | Pauline Lacour (CREG - Centre de recherche en économie de Grenoble - Université Pierre Mendès-France - Grenoble II : EA4625); Jean-Christophe Simon (LEPII - Laboratoire d'Économie de la Production et de l'Intégration Internationale - CNRS : FRE3389 - Université Pierre Mendès-France - Grenoble II) |
| Abstract: | En analysant la mise en œuvre du Mécanisme pour un Développement Propre (MDP), cet article vise à préciser les modalités d'intégration des pays en développement dans le régime climatique afin de s'interroger sur deux aspects particuliers : la dimension régionale de ce mécanisme de flexibilité -- dont la plupart des projets ont été accueillis en Asie -- et la pertinence des projets MDP face au défi d'une bonne articulation entre les politiques climatiques et les stratégies de développement soutenable. Ces aspects sont analysés dans le cas des pays d'Asie Orientale, qui présentent à la fois un enjeu fort de réduction des émissions de CO2 et une diversité de situations concernant les secteurs ciblés et les politiques énergie-climat. |
| Keywords: | politique climatique ; pays en Développement ; mécanisme pour un développement propre ; Asie, régime climatique |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00763231&r=env |
| By: | Raghu, P.T.; Das, S.; Ravi, S.B.; King, E.D.I.O |
| Abstract: | Smallholder farmers all over the world, particularly in regions of rich agro-biodiversity contribute to on-farm conservation. Past and present agricultural progress could not have happened neither without these genetic resources nor the associated farmer knowledge. Six species of minor millets are grown in India on more than 2 million hectares. The Kolli Hills in Tamil Nadu has been a region where five of these millet species have been under cultivation over the last several hundred years. These minor millets are currently under threat due to high competition from tapioca (cassava) as well as easy access to PDS rice at low cost. Over last three decades there has been decline in the millet area and number of farmers cultivating these species. It is in this context that this study attempts to examine the role of farmer incentive mechanisms to conserve minor millets in Kolli Hills. The millet varieties existing in the study area were classified either as most preferred varieties (MPVs) or least preferred varieties (LPVs) by the farmer respondents based on their yield and consumption preferences. The farmer willingness to accept compensation to participate in the conservation programme is estimated using a contingent valuation method (CVM). Seemingly unrelated bivariate probit regression was used to estimate the determinants of willing to participate in on-farm conservation of minor millets. The result shows that the impact of bid value is significant and positive to participate in the on-farm millet conservation of MPVs. The farmers participating is millet related organization are willing to accept lower compensation for MPVs and higher for LPVs compared to farmers who are not participating in such organization. |
| Keywords: | Agro-biodiversity; contingent valuation method; food security; neglected and underutilized crops; willingness to accept |
| JEL: | Q0 Q51 Q2 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:43348&r=env |
| By: | Sylvie Démurger (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - École Normale Supérieure - Lyon); Haiyuan Wan (Department of Social Development, National Development and Reform Commission - National development and reform commission) |
| Abstract: | This paper analyses the impact of the Sloping Land Conversion Program (SLCP) on rural labor migration in China. We use recent survey data from Ningxia Hui Autonomous Region and a difference-in-difference approach to assess the impact of the policy on labor migration decision. We find a significant effect of the policy: the migration probability increase due to the SLCP policy amounts to 17.5 percentage points in 2008. Furthermore, we highlight the role of policy duration in strengthening the impact of the program on migration. We also find that young, male and Hui nationality individuals are more likely to be impacted by the policy. |
| Keywords: | Sloping Land Conversion Program; Labor migration; Policy evaluation, China |
| Date: | 2012–12–13 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00763147&r=env |