nep-env New Economics Papers
on Environmental Economics
Issue of 2013‒03‒02
29 papers chosen by
Francisco S.Ramos
Federal University of Pernambuco

  1. Subglobal climate agreements and energy-intensive activities: An evaluation of carbon leakage in the copper industry By Bruno Lanz; Thomas F. Rutherford; John E. Tilton
  2. Market-based Emissions Regulation When Damages Vary Across Sources: What Are the Gains from Differentiation? By Meredith Fowlie; Nicholas Muller
  3. How can pure social discounting be ethically justified? By Buchholz, Wolfgang; Schymura, Michael
  4. A public choice view on the climate and energy policy mix in the EU: How do the emissions trading scheme and support for renewable energies interact? By Gawel, Erik; Strunz, Sebastian; Lehmann, Paul
  5. UK Households' Carbon Footprint: A Comparison of the Association between Household Characteristics and Emissions from Home Energy, Transport and Other Goods and Services By Buchs, Milena; Schnepf, Sylke V.
  6. Life Satisfaction and Air Quality in Europe By Akay, Alpaslan; Brereton, Finbarr; Cunado, Juncal; Ferreira, Susana; Martinsson, Peter; Moro, Mirko; Ningal, Tine F
  7. Subjective Well-Being and Air Quality in Germany By Maike Schmitt
  8. Revealed preferences for climate protection when the purely individual perspective is relaxed: Evidence from a framed field experiment By Löschel, Andreas; Sturm, Bodo; Uehleke, Reinhard
  9. Regional IAM: analysis of risk-adjusted costs and benefits of climate policies By Alexander Golub; Oleg Lugovoy; Anil Markandya; Ramon Arigoni Ortiz; James Wang
  10. Market Driven Power Plant Investment Perspectives in Europe: Climate Policy and Technology Scenarios until 2050 in the Model EMELIE-ESY By Andreas Schröder; Thure Traber; Claudia Kemfert
  11. Synopsis of Approaches to Welfare and of Green Growth Concepts Currently under Discussion By Gerd Ahlert; Prof. Dr. Bernd Meyer; Roland Zieschank; Prof. Dr. Hans Diefenbacher; Prof. Dr. Hans G. Nutzinger
  12. What's the Option? By Traeger, Christian
  13. Basic Structures and Political Implications of a Sustainable Welfare Model By Prof. Dr. Bernd Meyer; Gerd Ahlert; Roland Zieschank; Prof. Dr. Hans Diefenbacher
  14. Tactical/Operational Decision Making for Designing Green Logistics Networks By Mallidis, I.; Dekker, R.; Vlachos, D.
  15. South African food security and climate change: Agriculture futures By Dube, Sikhalazo; Scholes, Robert J.; Nelson, Gerald C.; Mason-D'Croz, Daniel; Palazzo, Amanda
  16. Modeling technological change in economic models of climate change: A survey By Löschel, Andreas; Schymura, Michael
  17. How disagreement about social costs leads to inefficient energy productivity investment By Voß, Achim
  18. Efficiency Analysis in the Presence of Bad Outputs By Laurens Cherchye; Bram De Rock; Barnabé Walheer
  19. Does Partner Type Matter in R&D Collaboration for Environmental Innovation? By Gunnar Pippel
  20. The Performance Effect of Environmental Innovations By Martin Wörter; Tobias Stucki; Christian Soltmann
  21. Promoting alternative, environmentally friendly passenger transport technologies: Directed technological change in a bottom-up/top-down CGE model By Veronika Kulmer
  22. Robust viable management of a harvested ecosystem model By Esther Regnier; Michel De Lara
  23. Les véhicules électrifiés réduiront-ils les émissions de carbone ? By Adrien Vogt-Schilb; Céline Guivarch; Jean Charles Hourcade
  24. An overview of salient factors, relationships and values to support integrated energy-economic systems dynamic modelling By Martin de Wit; Matthew Kuperus Heun; Douglas J Crookes
  25. PRegionaler Treibhausgas-Emissionshandel in den USA:Eine umweltökonomische Analyse der Erfahrungen und der Neuerungen in Kalifornien und Neuengland By Sven Rudolph
  26. Natural-resource or Market-seeking FDI in Russia? An Empirical Study of Locational Factors Affecting the Regional Distribution of FDI Entries By K. Gonchar; Philipp Marek
  27. Republic of Mozambique: Fifth Review Under The Policy Support Instrument And Request For Modification Of Assessment Criteria By International Monetary Fund
  28. Using a choice experiment to manage the excess demand challenges facing the Sundays River Estuary recreational fishery in South Africa By Deborah E. Lee, Stephen G. Hosking and Mario Du Preez
  29. Consumer preferences, aquaculture technology and the sustainability of fisheries By Esther Regnier; Katheline Schubert

  1. By: Bruno Lanz (ETH Zurich, Switzerland); Thomas F. Rutherford (ETH Zurich, Switzerland); John E. Tilton (Colorado School of Mines, USA)
    Abstract: Subglobal climate policies induce changes in international competitiveness and favor a relocation of carbon-emitting activities to non-abating regions. In this paper, we evaluate the potential for CO2 abatement and the emissions `leakage' effect in the copper industry, a prominent energy-intensive trade-exposed sector. We formulate a plant-level spatial equilibrium model for copper commodities in which parameters describing the behavioral response of agents are calibrated to econometric estimates of price elasticities. We find producers and consumers to be price inelastic even in the long-run, making the copper industry unresponsive to climate policies. Monte Carlo simulations with our model based on statistical uncertainty on elasticity estimates suggest that around 30% of emissions reductions in industrialized countries would be compensated by an increase of emissions in non-abating countries.
    Keywords: Carbon leakage; Pollution haven effect; Climate policy; International environmental agreements; International trade; Copper industry.
    JEL: F18 F55 H23 Q54 Q58
    Date: 2013–02
  2. By: Meredith Fowlie; Nicholas Muller
    Abstract: Much of the air pollution currently regulated under U.S. emissions trading programs is non-uniformly mixed, meaning that health and environmental damages depend on the location and dispersion characteristics of the sources. Existing policy regimes ignore this fact. Emissions are penalized at a single permit price, regardless of the location of the source. In theory, differentiated policies can be designed to accommodate non-uniformly mixed pollution using emissions penalties that vary with emissions damages. Under perfect certainty, damage-based policy differentiation is unambiguously welfare improving. In the presence of uncertainty about damages and abatement costs, differentiated policies need not welfare dominate simpler, undifferentiated designs. Using rich data from a major U.S. emissions trading program, we estimate the welfare impacts of policy differentiation. Surprisingly, we find that differentiated emissions trading results in welfare loss as compared to the undifferentiated trading regime that was implemented. This result manifests because ex post realized abatement costs appear to have exceeded expectations. We further show that, in this context, a differentiated price-based policy welfare dominates the differentiated quantity-based alternative.
    JEL: Q58
    Date: 2013–02
  3. By: Buchholz, Wolfgang; Schymura, Michael
    Abstract: The evaluation of long-term effects of climate change in cost-benefit analysis has a long tradition in environmental economics. Since the publication of the Stern Review in 2006 the debate about the appropriate discounting of future welfare and utility levels was revived and the most renowned scholars of the profession participated in this debate. In two recent contributions in Environmental and Resource Economics, there was dispute about intertemporal welfare economics between Partha Dasgupta and John Roemer about the correct interpretation of the topic. The aim of this work is to bring together economic and philosophical reasoning about justice and intergenerational equity in the context of climate change. So we adopt the normative view in order to present the most important ethical issues that, particularly in the context of climate policy, are most relevant for the choice of intertemporal discounting. Subsequently we explore whether ethical considerations may also be helpful to justify pure social discounting per se. --
    Keywords: Intertemporal ethics,Distribution,Discounting,Climate Change
    JEL: Q53
    Date: 2013
  4. By: Gawel, Erik; Strunz, Sebastian; Lehmann, Paul
    Abstract: In this paper, we analyze the rationale for an energy policy mix when the European Emissions Trading scheme (ETS) is considered from a public choice perspective. That is, we argue that the economic textbook model of the ETS implausibly assumes 1) efficient policy design and 2) climate protection as the single objective of policy intervention. Contrary to these assumptions, we propose that the ETS originates from a political bargaining game within a context of multiple policy objectives. In particular, the emissions cap is negotiated between regulators and emitters with the emitters' abatement costs as crucial bargaining variable. This public choice view yields striking implications for an optimal policy mix comprising RES supporting policies. Whereas the textbook model implies that the ETS alone provides sufficient climate protection, our analysis suggests that support for renewable energies 1) contributes to a more effective ETS-design and 2) may even increase the overall efficiency of climate and energy policy if other externalities and policy objectives besides climate protection are considered. Thus, our analysis also shows that a public choice view not necessarily entails negative evaluations concerning efficiency and effectiveness of a policy mix. --
    JEL: H23 Q42 Q48 Q58
    Date: 2013
  5. By: Buchs, Milena (University of Southampton); Schnepf, Sylke V. (University of Southampton)
    Abstract: Does the association between household characteristics and household CO2 emissions differ for different areas such as home energy, transport, indirect and total emissions in the UK? Specific types of households might be more likely to have high emissions in some areas than in others and thus be affected differently by climate mitigation policies that target these areas. Using the Living Costs and Food Survey and Expenditure and Food Survey for the years 2006 to 2009, this paper compares how household characteristics like income, household size, rural/urban location and education level differ in their association with home energy, transport, indirect and total emissions. We find that the association between household characteristics and emissions differs considerably across these areas, particularly for income, education, the presence of children, female headed, workless and rural households. We also test the implicit assumption in the literature that the association between household characteristics and CO2 emission is constant across the CO2 emission distribution using quantile regressions and compare results for poor and rich households. The analysis considers policy implications of these findings throughout.
    Keywords: climate change mitigation policies, inequality, carbon dioxide emissions, living costs and food survey, United Kingdom
    JEL: D12 D31 D60 H20 Q01
    Date: 2013–02
  6. By: Akay, Alpaslan; Brereton, Finbarr; Cunado, Juncal; Ferreira, Susana; Martinsson, Peter; Moro, Mirko; Ningal, Tine F
    Abstract: Concerns for environmental quality and its impact on people's welfare are fundamental arguments for the adoption of environmental legislation in most countries. In this paper, we analyse the relationship between air quality and subjective well-being in Europe. We use a unique dataset that merges three waves of the European Social Survey with a new dataset on environmental quality including SO2 concentrations and climate in Europe at the regional level. We find a robust negative impact of SO2 concentrations on self-reported life satisfaction.
    Keywords: GIS; European Social Survey; Europe; Life Satisfaction; Subjective Well-Being; SO2 Concentrations; Air Quality
    Date: 2013–02
  7. By: Maike Schmitt
    Abstract: This paper analyses the relation between air quality and subjective well-being in Germany. Life Satisfaction (LS) data from the German Socio-Economic Panel Study (SOEP) is connected with daily county pollution in terms of carbon monoxide (CO), nitrogen dioxide (NO2) and ozone (O3) from 1998 to 2008. The assumed microeconometric happiness function is estimated considering individual time invariant effects. It is observed that O3 has a significant negative impact on life satisfaction. The estimated influence of current CO as well as NO2 is not significant. Moreover, I found that LS of people with environmental worries is more affected by ozone pollution. This was not the case for people with a bad health status. Using the marginal rate of substitution between income and air pollution, it is calculated that an increase of one µg/m3 in daily average county O3 has to be compensated by an increase of €11.33 in monthly net household income to hold an average individual's LS constant.
    Keywords: Life satisfaction, air pollution, environmental quality
    Date: 2013
  8. By: Löschel, Andreas; Sturm, Bodo; Uehleke, Reinhard
    Abstract: In this paper, we investigate the real demand for climate protection when the purely individual perspective of existing revealed preference studies is relaxed. This is achieved in two treatments; first, we determine the information subjects receive about the demand revealed by other subjects in a similar decision making situation, second, collective action is implemented whereby all subjects are required to purchase the group's median quantity at a given price. Participants in the experiment were offered the opportunity to contribute to climate protection by purchasing European Union Allowances. Allowances purchased were withdrawn from the European Emissions Trading Scheme. In our experiment, information about other subjects' behaviour has no treatment effect on the demand for climate protection. Under collective action however, the probability of purchasing allowances is higher compared to the reference treatment situation, an individual contribution mechanism. Furthermore, we observe a strong correlation between subjects' demand and their expectations about other participants' behaviour. When collective action is not available, subjects' expectations are consistent with free rider behaviour. --
    Keywords: experimental economics,demand for climate protection,climate change,willingness to pay
    JEL: Q51 Q54 C93
    Date: 2013
  9. By: Alexander Golub; Oleg Lugovoy; Anil Markandya; Ramon Arigoni Ortiz; James Wang
    Abstract: Across the full range of publications in the field of economics of climate change there is perhaps only one firm agreement: both costs and benefits of climate policy are highly uncertain. In an ideal world one would wait until a good deal of uncertainty is resolved and then make a final decision. Usually in the economic literature it would be interpreted as adopting a relatively weak policy now and adjusting it later. Unfortunately, in the context of path-dependency and irreversibility of climatic events there is no way to preserve a full flexibility for the future: near-term selection of an interim climate policy implies some irreversible consequences. Continued accumulation of GHG in the atmosphere makes some policy targets (expressed in temperature level or GHG ppm concentration) infeasible. The paper examines the application of real option analysis to calculate costs and benefits of an interim climate policy. In contrast to conventional CBA, the proposed methodology also accounts for lost and gained flexibility attributed to the adoption of an interim target.
    Keywords: Climate policy; integrated impact assessment model; uncertainty; real option analysis
    Date: 2013–02
  10. By: Andreas Schröder; Thure Traber; Claudia Kemfert
    Abstract: EMELIE-ESY is a partial equilibrium model with focus on electricity markets. Private investors optimize their generation capacity investment and dispatch over the horizon 2010 to 2050. In the framework of the Energy Modeling Forum 28, we investigate how climate policy regimes affect market developments under different technology availabilities and climate policies on the European power markets. The model projects an only minor increase of power consumption because of higher wholesale prices or energy efficiency current climate policy, and a balanced consumption pathway under ambitious climate policy. These results contrast with findings of POLES and PRIMES models in the reference case that predict unexpected heavy consumption increases by 2050. By contrast, we find no investment into Carbon Capture and Storage (CCS) and a diminishing share of nuclear energy. We find that renewable energy supply extension as projected can sufficiently meet electricity consumption complemented by only few capacity investments in conventional technology.
    Keywords: Electricity markets, investment, climate policy
    Date: 2013
  11. By: Gerd Ahlert (GWS - Institute of Economic Structures Research); Prof. Dr. Bernd Meyer (GWS - Institute of Economic Structures Research); Roland Zieschank (GWS - Institute of Economic Structures Research); Prof. Dr. Hans Diefenbacher (GWS - Institute of Economic Structures Research); Prof. Dr. Hans G. Nutzinger (GWS - Institute of Economic Structures Research)
    Abstract: This paper is part of the research project “Cornerstones of an ecologically sustainable welfare concept as a basis for eco-political innovation and transformation processes” funded by the German Ministry of Environment. The main aim is to identify differentiated and exemplary starting points for an eco-politically viable and measurable concept of sustainable welfare. The synopsis presented here concentrates on the systematic evaluation of current discussions on alternative approaches to welfare, ecologically oriented welfare doctrines and strategies on the basis of a consistent matrix of questions. Key points of a sustainable welfare model in ten theses are formulated. Such a model should illustrate the environmental policy by showing its effect on people’s welfare and the use of the natural world and should assist national environmental policy in its decision-making.
    Keywords: sustainable welfare, synopsis, welfare doctrines, model
    JEL: I31 Q58
    Date: 2013
  12. By: Traeger, Christian
    Abstract: Global warming, alterations of ecosystems, and sunk investmentsall imply irreversible changes with uncertain future costs and benefits. Twoconcepts measure how this combination of uncertainty and irreversibilitychanges the value of preserving an ecosystem or postponing an investment.First, the environmental and resource economics literature developed theArrow-Fisher-Hanemann-Henry quasi-option value. Second, the real optionsliterature developed the Dixit-Pindyck option value. This paper clarifiesthe precise differences between the two approaches in a simple two periodmodel. We explain that the quasi-option value captures the value of learningconditional on preservation, while the Dixit-Pindyck option value capturesthe net value of preservation under learning. We show how either of the twoconcepts alters the common net present value decision rule. We illustratesimilarities, differences, and the decision rules in two instructive examples.
    Keywords: Agriculture, Agriculture Operations, and Related Sciences, Natural Resources and Conservation, irreversibility, option, quasi-option value, benefit cost analysis, uncertainty
    Date: 2013–01–01
  13. By: Prof. Dr. Bernd Meyer (GWS - Institute of Economic Structures Research); Gerd Ahlert (GWS - Institute of Economic Structures Research); Roland Zieschank (GWS - Institute of Economic Structures Research); Prof. Dr. Hans Diefenbacher (GWS - Institute of Economic Structures Research)
    Abstract: The reflections presented here are directly related to the shortcomings concerning welfare and "green" growth concepts identified in the course of the research project “Cornerstones of an ecologically sustainable welfare concept as a basis for eco-political innovation and transformation processes” funded by the German Ministry of Environment. The concepts are too simplistic in terms of environmental, economic and social sustainability. Against this background a broader decision model was developed within the project (Meyer et al. 2012c, Meyer et al. 2013). This model provides the reference points for the development of a sustainable welfare concept, which can be used as a political action plan in the context of environmental policy. The development of a normative model for the assessment of alternative courses of action plays a central role in this paper.
    Keywords: sustainable welfare, concepts, normative model, evironmental policy
    JEL: Q58 I31
    Date: 2013
  14. By: Mallidis, I.; Dekker, R.; Vlachos, D.
    Abstract: Cap and trade regulations along with an increasing consumer and company demand for green products and services constitute two major drivers for motivating corporations to adopt green practices. However, the adoption of such practices usually increases their operational costs. Therefore, the trade-off between “green†and cost-optimal policies is a common challenge for most organizations, at least in developed countries. The purpose of this paper is to assess alternative logistic network design options (applicable in most supply chains) taking into account both their cost and CO2 emissions performance. The applicability of the proposed methodology is illustrated through the design of a major white good retailer’s logistics network in the region of Greece. The results indicate that a company optimizes its cost performance by serving all its retail stores directly by truck through one central distribution center. On the other hand, a CO2 emissions optimal performance includes additional distribution centers and the employment of rail instead of truck transportation. Moreover, longer review periods, despite the higher holding and backorder costs, result in lower transportation costs and CO2 emissions.
    Keywords: environment;CO2 emissions;periodic review inventory control system
    Date: 2013–02–04
  15. By: Dube, Sikhalazo; Scholes, Robert J.; Nelson, Gerald C.; Mason-D'Croz, Daniel; Palazzo, Amanda
    Abstract: The projected changes in planted area, yield per area, net exports/imports and priced for five major agricultural crops in South Africa were simulated using the projections of four Global Circulation Models (GCMs) under three socio-economic scenarios. The GCM runs were those undertaken for the IPCC fourth assessment report. They show consistent strong warming over the subcontinent, but disagree with respect to future precipitation, from slight wetting (particularly on the eastern side) to overall slight drying. The future crop yields were simulated using the DSSAT crop model suite. The planted area, commodity prices and net exports were simulated using the IMPACT global food trade model. The results indicate slightly rising to stable yields per unit area up to 2050, despite climate change, largely due to the inbuilt assumption of ongoing agronomic and genetic improvements. The planted area remains fairly constant in both location and size. As a result of increasing food demand, net exports decline (i.e. imports increase) substantially, and so do prices due to simultaneous increases in global demand. The effects on food security in South Africa, measured as average calorific intake per person and malnutrition in children under the age of five, depends more on the assumptions regarding population and GDP growth than on climate change, since the study assumes that local shortages will be balanced by increased imports, if they are affordable. Thus the vulnerability to food insecurity at family and national level increases in the future under all but the most optimistic development scenarios, and is exacerbated by climate change, especially through global-scale, market-related mechanisms. Policies to increase local agricultural production, decrease its climate sensitivity and facilitate access to international markets are indicated, along with efforts to reduce agricultural greenhouse gas emissions. --
    Keywords: climate change,crop production,scenarios,food security,futures,modeling
    JEL: Q55 Q18
    Date: 2013
  16. By: Löschel, Andreas; Schymura, Michael
    Abstract: The assessment of climate change mitigation policies through economic modeling depends crucially on assumptions under which technological change has been incorporated in the model. Earlier climate-energy-economics modeling attempts heavily relied on the assumption of exogenous technological change. In this case, technological change is a function solely of time. However, such an approach seems insufficient, especially given developments in other fields of economic research that have helped to explain in more detail the process of technological change. A lot of research has been done hence on endogenizing technological change in large-scale models. The purpose of this paper is to summarize these efforts. We describe different model types and their treatment of exogenous technological change (autonomous energy efficiency improvements and backstop technologies) and endogenous technological change (including price inducement, learning-by-doing, investments in R & D and directed technical change). We conclude with some open questions and suggestions for future research. --
    Keywords: Exogenous Technical Change,Endogenous Technological Change,Price inducement,Learning-by-doing,Directed Technical Change,Modeling
    JEL: C50 C68 O30 Q25
    Date: 2013
  17. By: Voß, Achim
    Abstract: Public energy productivity investment influences the amount of future energy consumption. If a present government expects its successor to value the social costs of fuel usage differently, this adds a strategic component to its investment considerations. We analyze this governmental time-inconsistency situation as a sequential game. In particular, we show how the expectation of a more conservative party taking over makes a green government choose an investment level that is ineffcient in that neither of the parties would prefer it to the investment level of a permanent green government. Under some circumstances, the opposition would even prefer the government to stay in power for sure: The gain of avoiding strategic investment then outweighs the loss of not being able to regulate energy consumption. We also analyze welfare gains of binding agreements. --
    Keywords: political economics,environmental policy,energy policy,energy effciency,rebound effects,energy externalities,strategic investment,sequential games,time-inconsistency
    JEL: Q48 Q58 Q55 D72
    Date: 2013
  18. By: Laurens Cherchye; Bram De Rock; Barnabé Walheer
    Keywords: DEA; allocation efficiency; cost inefficiency; environment; CO2 emissions; electric utilities
    Date: 2013–02
  19. By: Gunnar Pippel
    Abstract: In the literature on environmental innovations R&D collaborations have been identified as a critical determinant of a firm’s environmental innovation performance. However, the literature suggests that R&D collaboration is not always beneficial. Therefore, a more elaborated analysis of the effects of R&D collaborations on a firm’s environmental innovation performance is necessary. This paper investigates the impact of R&D col-laborations with different partner types such as customers, competitors, suppliers, uni-versities, governmental research institutes, consultants and other firms within the same firm group on a firm’s environmental innovation performance. In addition, this paper addresses the question of whether the diversity of R&D collaboration partners is im-portant for the environmental innovation performance. Firm-level data from 2,337 Ger-man service and manufacturing firms are used in the regression analysis. The results suggest that R&D collaboration with suppliers, customers, universities, governmental research institutes, consultants and other firms within the same firm group has a signifi-cantly positive impact on a firm’s environmental innovation performance, whereas col-laboration with competitors has no significant impact. The diversity of R&D collaboration partners has a significantly positive impact on a firm’s environmental innovation performance.
    Keywords: R&D, collaboration, environment, innovation
    JEL: O31 O32
    Date: 2013–02
  20. By: Martin Wörter (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Tobias Stucki (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Christian Soltmann (Swiss Federal Institute of Intellectual Property, Switzerland)
    Abstract: While recent literature has focused on explaining the determinants of green innovations, it is not well understood how such innovations affect performance. To analyse the relationship between green innovation and performance, new industry-level panel data were exploited: these include 12 OECD countries, the whole manufacturing sector and a period of 30 years. The results show that green inventions are U-shape related to performance. However, the turning point is quite high and hence only relevant for a few industries. This indicates that - given the current level of green promotion - market incentives alone are not sufficient to allow the green invention activities of industries to rise considerably.
    Keywords: Innovation, R&D, patents, environment, technological change, performance
    JEL: O30 O34 Q55
    Date: 2013–02
  21. By: Veronika Kulmer (Wegener Center for Climate and Global Change, University of Graz, Austria)
    Abstract: This paper evaluates policy options that foster the progress of alternative, environmentally friendly passenger transport technologies in order to reduce greenhouse gas emissions viable technological switch. For the example of Austria, we develop a dynamic computable general equilibrium model which explicitly considers passenger transport technologies comprising "internal combustion engine” (ICE), “plug-in hybrid electric vehicle” (PHEV), “electric vehicle” (EV) and “fuel cell electric vehicle” (FCEV). Regarding technological progress we also incorporate labor augmenting, directed technological change. For policy analysis, we study the effects of (i) a phase out of ICE and subsidy in R&D, (ii) a fuel tax and subsidy in R&D and (iii) an output subsidy on FCEV. We find that in terms of overall emission reduction, in the given time scale from 2005 to 2050, the continuous phase-out of ICE in combination with a subsidy in R&D is the most effective policy measure. The fuel tax in combination with a subsidy in R&D shows the smallest emission reduction. However, in terms of costs, impacts on consumption of private goods are the smallest among all policy instruments. Moreover, domestic output of economic sectors is boosted. Finally, results show, that the competitiveness of FCEV implies a considerable fall in emissions and favors production of several economic sectors, such as electrical machinery and chemical products. However, in order to ensure competitiveness the output subsidy on FCEV is extremely high, impacting private consumption strongly.
    Keywords: technology policy, directed technological change, computable general equilibrium
    JEL: O31 O38 Q55 Q58
    Date: 2013–02
  22. By: Esther Regnier (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris); Michel De Lara (CERMICS - Centre d'Enseignement et de Recherche en Mathématiques et Calcul Scientifique - Ecole des Ponts ParisTech)
    Abstract: The Word Summit on Sustainable Development (Johannesburg, 2002) encouraged the application of the ecosystem approach by 2010. In this perspective, we propose a theoretical management framework that deals jointly with i) ecosystem dynamics, ii) conflicting issues of production and preservation and iii) robustness with respect to dynamics uncertainties. More specifically, we define the robust viability kernel as the set of initial species biomasses such that at least one harvesting strategy guarantees minimal production and preservation levels for all times, whatever the uncertainties. We apply our approach to the anchovy-hake couple in the Peruvian upwelling ecosystem. We find that accounting for uncertainty significantly reduces the robust viability kernel compared to the deterministic one (without uncertainties). We observe that, when we increase the set of uncertainties, the robust viability kernel very slightly decreases, expressing a moderate sensibility with respect to refining the set of uncertainties. We comment on the management implications of comparing robust viability kernels (with uncertainties) and the deterministic one (without uncertainties).
    Keywords: Optimization; viability; uncertainty; robustness; sustainability; ecosystem management; fisheries; Peruvian upwelling
    Date: 2013–01
  23. By: Adrien Vogt-Schilb (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CIRAD : UMR56 - CNRS : UMR8568 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - AgroParisTech); Céline Guivarch (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CIRAD : UMR56 - CNRS : UMR8568 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - AgroParisTech); Jean Charles Hourcade (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CIRAD : UMR56 - CNRS : UMR8568 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - AgroParisTech)
    Abstract: La capacité des véhicules électrifiés (VE) à diminuer les émissions de gaz à effet de serre (GES) est sujette à débat. De nombreuses études fondent le calcul des émissions kilométriques des VE sur le contenu carbone de l'électricité contemporaine. Nous proposons une évaluation qui mobilise une vision cohérente de l'évolution du système énergétique dans lequel les VE doivent s'insérer. Nous utilisons un modèle de simulation prospective pour produire des scénarios contrastés de l'évolution du contenu carbone de l'électricité européenne. Cet exercice suggère que si l'Europe choisit de mettre en place des politiques climatiques destinées à réduire drastiquement ses émissions de GES, le contenu carbone de l'électricité va diminuer rapidement, prolongeant sur le long terme l'avantage actuel des VE sur les véhicules classiques en termes d'émissions par kilomètre. A long terme, l'électrification des véhicules est pertinente dans toutes les régions du monde.
    Keywords: véhicules électrique; gaz à effet de serre; bilan carbone; prospective; politiques climatiques
    Date: 2013–02–10
  24. By: Martin de Wit (School of Public Leadership, University of Stellenbosch); Matthew Kuperus Heun (Engineering Department, Calvin College); Douglas J Crookes (Independent Researcher)
    Abstract: Integrated energy-economic modeling is needed to support the development of energy and carbon policies. We propose that a systems dynamic modeling approach is needed; one that includes (a) dynamics (b) endogenous treatment of uncertainty and risks, and (c) both aggregate economic and disaggregate technical or engineering levels of analysis. To support the future development of integrated energy-economic models we review and organise the literature on energy-economy interactions into subsections covering (a) the key factors or components, (b) the relationships among these components, (c) a quantification of parameters and (d) implications for the development of an integrated energy-economic systems dynamic model. The literature is organized in discussions on economic growth and the factors of production, elasticities, macro- and technical substitutability, energy cost shares, heat engine efficiencies and energy services efficiencies. We observe non-linear relationships in production and consumption, large variations among price and income elasticity values across time frames, across countries and regions, and across energy goods, far from perfect substitution among factors of production and among energy goods on a macro level, technical/engineering limits to substitution on a micro level, as well as engineering and behavioural limits on what can be achieved with increased efficiencies. We therefore support the call to develop integrated energy-economic systems dynamic models that are able to provide new insight into the nature of energy-economic transitions
    Keywords: energy-economic modeling, system dynamics, elasticities, economic substitution, technical substitution, energy efficiency, energy cost share, heat engine efficiency
    JEL: C63 Q43 Q47
    Date: 2013
  25. By: Sven Rudolph (University of Kassel)
    Abstract: In den USA, weltweit zweitgrößte Wirtschaftsmacht und gleichzeitig zweitgrößter Emittent von Treibhausgasen, war die Regierungsübernahme durch die Obama-Administration im Jahr 2008 geprägt von großen Hoffnungen nach der klimapolitischen Abstinenz der Bush-Regierung (Moslener/Sturm 2008, Würtenberger 2009). Spätestens im Jahr 2010 wurde diese Hoffnung mit dem Scheitern des American Clean Energy and Security Act (ACESA) aller-dings jäh beendet (Pooley 2010). Auf bundesstaatlicher Ebene waren klimapolitische Vorstö-ße inklusive regionaler Emissionshandelssysteme hingegen nicht nur politisch deutlich erfolg-reicher, sondern sie zeigen sogar teilweise positive Wirkungen. Kalifornien startete soeben sein eigenes Emissionshandelssystem und der Nordosten der USA vollzog eine tiefgreifende Revision der Regional Greenhouse Gas Initiative (RGGI). Vor diesem Hintergrund stellt der vorliegende Beitrag unter Einbeziehung aktuellster Entwicklungen in den USA das Design regionaler Treibhausgas-Emissionshandelssysteme in den USA dar, beschreibt die ersten Er-fahrungen, bewertet das Design der (revidierten) Programme und evaluiert die bisherigen Re-sultate auf der Basis bewährter umweltökonomischer Wirkungs- und Designanalysen (Ru-dolph et al. 2012).
    Keywords: Klimapolitik, Emissionshandel, USA, RGGI, WCI, Kalifornien
    JEL: D62 D63 Q48 Q54 Q58
    Date: 2013
  26. By: K. Gonchar; Philipp Marek
    Abstract: This paper conducts an empirical study of the factors that affect the spatial distribution of foreign direct investment (FDI) across regions in Russia; in particular, this paper is concerned with those regions that are endowed with natural resources and market-related benefits. Our analysis employs data on Russian firms with a foreign investor during the 2000-2009 period and linked regional statistics in the conditional logit model. The main findings are threefold. First, we conclude that one theory alone is not able to explain the geographical pattern of foreign investments in Russia. A combination of determinants is at work; market-related factors and the availability of natural resources are important factors in attracting FDI. The relative importance of natural resources seems to grow over time, despite shocks associated with events such as the Yukos trial. Second, existing agglomeration economies encourage foreign investors by means of forces generated simultaneously by sector-specific and inter-sectoral externalities. Third, the findings imply that service-oriented FDI co-locates with extraction industries in resource-endowed regions. The results are robust when Moscow is excluded and for subsamples including only Greenfield investments or both Greenfield investments and mergers and acquisitions (M&A).
    Keywords: multinational enterprises, regional economic activity, exhaustible resources and economic development
    JEL: F23 R11 Q34
    Date: 2013–02
  27. By: International Monetary Fund
    Keywords: Policy Support Instrument;Economic growth;Fiscal policy;Infrastructure;Natural resources;Public investment;Balance of payments;Monetary policy;Economic indicators;Staff Reports;Press releases;Performance criteria modifications;Mozambique;
    Date: 2013–01–04
  28. By: Deborah E. Lee, Stephen G. Hosking and Mario Du Preez
    Abstract: The Sundays River Estuary, situated in the Eastern Cape, South Africa, has excess recreational demand for estuarine services, specifically recreational fishing. The estuary has been over-fished, putting its sustainability at risk. Various management interventions may be required in order to save it, but how is this to be done without reducing welfare. This paper reports the application of a choice experiment to guide this very issue. It is found that the physical size of fish stocks is a very important predictor of recreational choice at the Sundays River Estuary, and it is recommended that demand be curtailed through an increase in the boat license fee for using the estuary of R174 per annum.
    Keywords: Estuary, demand management, recreational attributes, recreational fishery, choice experiment
    Date: 2013
  29. By: Esther Regnier (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris); Katheline Schubert (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris)
    Abstract: This article analyzes the impact of aquaculture on wild fish stocks and on fish consumption, taking into account its dependence on reduction fisheries for the feeding of the farmed species and consumet preferences. The model includes the demand side and three sectors : and edible fish fishery and a reduction fishery, both in open access, and an aquaculture sector. We assume on the one hand that consumer preferences are carnivorous species biased, and on the other hand that the efficiency of the aquaculture sector depends on the diet of the farmed species. We show that consumers are better-off in presence of aquaculture. Furthermore, the income level for which collapse of the wild edible fishery occurs is postponed. However, the choice of the farmed species entails a trade-off between the edible fishery and the reduction fishery which stems from the characteristics of the demand side. Therefore, we explore the consequences of the sensitivity of consumers to the farmed fish type. We also analyze the dynamics of fish stocks, supplies and prices and find that the steady state is a stable node.
    Keywords: Fisheries; aquaculture; consumer preferences; food safety
    Date: 2013–01

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