nep-env New Economics Papers
on Environmental Economics
Issue of 2013‒06‒16
thirty-two papers chosen by
Francisco S.Ramos
Federal University of Pernambuco

  1. International Trade, Emissions Trading Systems, and Sectorally Differentiated Environmental Regulations (Japanese) By TAKARADA Yasuhiro
  2. Calculating the carbon footprint from different classes of air travel By Bofinger, Heinrich; Strand, Jon
  3. Development Trajectories, Emission Profile, and Policy Actions: Singapore By Doshi, Tilak K.; D’Souza, Neil Sebastian
  4. Bottom-Up Strategic Linking of Carbon Markets: Which Climate Coalitions Would Farsighted Players Form? By Jobst Heitzig
  5. Mitigation and Solar Radiation Management in Climate Change Policies By Vasiliki Manousi; Anastasios Xepapadeas
  6. The 2011 Basin Plan, Climate Change and the Buy-Back By Adamson, David
  7. Climate policy, Interconnection and Carbon Leakage: the Effect of Unilateral UK Policy on Electricity and GHG Emissions in Ireland By Curtis, John A.; di Cosmo, Valeria; Deane, Paul
  8. Industry Compensation Under Relocation Risk: A Firm-Level Analysis of the EU Emissions Trading Scheme By Ralf Martin; Mirabelle Muûls; Laure B. de Preux; Ulrich J. Wagner
  9. Evaluating the Global Role of Woody Biomass as a Mitigation Strategy By Alice Favero, Yale University, FEEM and CMCC; Robert Mendelsohn
  10. The Building Blocks of International Ecological Footprint inequality: A Regression-Base Decomposition By Teixidó Figueras, Jordi; Duro Moreno, Juan Antonio
  11. Greening global value chains : innovation and the international diffusion of technologies and knowledge By Glachant, Matthieu; Dussaux, Damien; Meniere, Yann; Dechezlepretre, Antoine
  12. Linking price and quantity pollution controls under uncertainty By Wood, Peter J.; Heindl, Peter; Jotzo, Frank; Löschel, Andreas
  13. Measuring Environmental Regulatory Stringency By Claire Brunel and Arik Levinson
  14. Clean and Dirty International Technology Diffusion By Valentina Bosetti; Elena Verdolini
  15. Green Economy and Bio-based Economics: Assessment and Critique of Their Philosophical Assumptions By Leonardi, Emanuele
  16. Environmental and Economic Impact of Agricultural Land Use - a Spatially Explicit DEA Approach - By Kapfer, M.; Kantelhardt, J.; Eckstein, K.; Hübner, R.
  17. Driving Restrictions That Work? Quito's Pico y Placa Program By Paul E. Carrillo; Arun S. Malik; Jiseon Yoo
  18. Management and overfishing problems in the High Adriatic sea and the future policy perspectives. By Severini, Nicola
  19. Did Fukushima matter? Empirical evidence of the demand for climate protection in Germany By Gallier, Carlo; Löschel, Andreas; Sturm, Bodo
  20. A spatial econometric approach to assess the impact of RDPs agri-environmental measures on the use of Nitrogen in agriculture: the case study of Emilia-Romagna (Italy) By Marconi, V.; Raggi, M.; Viaggi, D.
  21. How Do Agri-Environmental Schemes (AES’s) Contribute to High Nature Value (HNV) Farmland: a Case Study in Emilia Romagna By Signorotti, Claudio; Marconi, Valentina; Raggi, Meri; Viaggi, Davide
  22. Adaptation to Climate Change in Low-Income Countries: Lessons from Current Research and Needs from Future Research By Stephen C. Smith; Arun S. Malik
  23. Assessing the CAP influence on European farmers’ preferences towards the adoption of renewable energy production. By Giannoccaro, Giacomo; Bartolini, Fabio; Raggi, Meri; Viaggi, Davide
  24. Impact of Agri-environmental Schemes on Farm Performances in five EU Member States By Arata, L.; Sckokai, P.
  25. Waste Prevention and Social Preferences: The Role of Intrinsic and Extrinsic Motivations By Grazia Cecere; Susanna Mancinelli; Massimiliano Mazzanti
  26. Do bilateral commercial relationships influence the distribution of CDM projects? By Valeria Costantini; Giorgia Sforna
  27. Energy Intensity Developments in 40 Major Economies: Structural Change or Technology Improvement? By Enrica De Cian; Michael Schymura; Elena Verdolini; Sebastian Voigt
  28. Agriculture as a sector of opportunity for young people in Africa By Brooks, Karen; Zorya, Sergiy; Gautam, Amy; Goyal, Aparajita
  29. Water trading as a risk-management tool for farmers: new empirical evidence from the Australian water market By Zuo, Alec; Nauges, Celine; Wheeler, Sarah
  30. Awareness as an Adaptation Strategy for Reducing Mortality from Heat Waves: Evidence from a Disaster Risk Management Program in India By Stephen C. Smith; Saudamini Das
  31. Pros and cons of the bioeconomy: a critical appraisal of public claims through Critical Discourse Analysis By Sodano, V.
  32. La responsabilité sociale et environnementale des entreprises : mirage ou virage ? By Patricia Crifo; Vanina Forget

  1. By: TAKARADA Yasuhiro
    Abstract: This paper examines the welfare effects of the enforcement of emissions trading systems when the government initially imposes sectorally differentiated environmental regulations. The implementation of emissions trading is generally considered to be welfare enhancing because it equalizes the marginal abatement costs between sectors. First, contrary to conventional wisdom, we find that a small open economy is harmed by the enforcement of emissions trading if there is a reasonable relation between the import tariff rate (pollution content tariff) and the initial disparity of environmental regulations across sectors. To avoid welfare deterioration, the government should decrease the import tariff in accordance with mitigation of the sectoral difference in regulations through emissions trading. Our result suggests that the enforcement of emissions trading systems should be accompanied by trade liberalization. Second, in a two-country model, we show that international emissions trading may harm the home country that implements sectorally differentiated environmental regulations and buys emission permits but benefits the foreign country that implements uniform environmental regulations and sells emission permits, if the home country exports clean goods and the foreign country exports pollution intensive goods. The home country may lose from permit trading because its terms of trade deteriorate through changes in production caused by permit trading. This result suggests that a country with sectorally differentiated country should purchase emission permits at a sufficiently low price to benefit from international emission trading.
    Date: 2013–06
  2. By: Bofinger, Heinrich; Strand, Jon
    Abstract: This paper develops a new methodology for calculating the"carbon footprint"of air travel whereby emissions from travel in premium (business and first) classes depend heavily on the average class-specific occupied floor space. Unlike methods currently used for the purpose, the approach properly accounts for the fact that the relative number of passenger seats in economy and premium classes is endogenous in the longer term, so adding one additional premium trip crowds out more than one economy trip on any particular flight. It also shows how these differences in carbon attributable to different classes of travel in a carbon footprint calculation correspond to how carbon surcharges on different classes of travel would differ if carbon emissions from international aviation were taxed given a competitive aviation sector globally. The paper shows how this approach affects carbon footprint calculations by applying it to World Bank staff travel for calendar year 2009.
    Keywords: Transport Economics Policy&Planning,Climate Change Mitigation and Green House Gases,Roads&Highways,Montreal Protocol,Environmental Economics&Policies
    Date: 2013–05–01
  3. By: Doshi, Tilak K. (Asian Development Bank Institute); D’Souza, Neil Sebastian (Asian Development Bank Institute)
    Abstract: Singapore is the most industrialized and urbanized country in Southeast Asia and is totally dependent on oil and natural gas imports to satisfy its energy needs. Its national energy policy framework seeks to find a balance between maintaining Singapore’s competitiveness, improving energy security, and enhancing environmental sustainability. This paper discusses where Singapore stands with regard to its energy consumption and CO2 emissions, its energy policies to date, and those that will be implemented in the near future.
    Keywords: singapore; energy policy; energy consumption; co2 emissions; energy security; environmental sustainability
    JEL: O53 Q38 Q40 Q48
    Date: 2013–05–30
  4. By: Jobst Heitzig (Potsdam Institute for Climate Impact Research, Transdisciplinary Concepts and Methods)
    Abstract: We present typical scenarios and general insights from a novel dynamic model of farsighted climate coalition formation involving market linkage and cap coordination, using a simple analytical model of the underlying cost-benefit structure. In our model, the six major emitters of CO2 can link domestic cap-and-trade systems to form one or several international carbon markets, and can either choose their emissions caps non-cooperatively or form a hierarchy of cap-coordinating coalitions inside each market. Based on individual and collective rationality and an assumed distribution of bargaining power, we derive scenarios of such a climate coalition formation process which show that a first-best state with a coordinated global carbon market might well emerge bottom-up, and underline the importance of coordinating caps immediately when linking carbon markets. Surprisingly, the process tends to involve less uncertainty when agreements can be terminated unanimously or unilaterally, depending on the level of farsightedness.
    Keywords: Climate Policy, International Environmental Agreements, Cap and Trade, Coalition Formation, Farsightedness
    JEL: D85 Q5
    Date: 2013–05
  5. By: Vasiliki Manousi (Department of International and European Economic Studies, Athens University of Economics and Business); Anastasios Xepapadeas (Department of International and European Economic Studies, Athens University of Economics and Business)
    Abstract: We couple a spatially homogeneous energy balance climate model with an economic growth model which incorporates two potential policies against climate change: mitigation, which is the traditional policy, and geoengineering. We analyze the optimal policy mix of geoengineering and mitigation in both a cooperative and a noncooperative framework, in which we study open loop and feedback solutions. Our results suggests that greenhouse gas accumulation is relatively higher when geoengineering policies are undertaken, and that at noncooperative solutions incentives for geoengineering are relative stronger. A disruption of geoengineering efforts at a steady state will cause an upward jump in global temperature.
    Keywords: Climate Change, Mitigation, Geoengineering, Cooperation, Differential Game, Open Loop - Feedback Nash Equilibrium
    JEL: Q53 Q54
    Date: 2013–05
  6. By: Adamson, David
    Abstract: The long-term success of the Basin Plan and the Buy-Back will be judged by the capacity of the allocated public funding to deliver water to the environment, potable water supplies for the community and water for irrigation. Water property rights in the Murray-Darling Basin can be divided into four distinct groups (ground water, high security, general security and supplementary) reflecting their inherent capacity to deliver water supplies in response to climatic conditions in a given year. The price paid for these entitlements reflects their ability to provide water under known climate variability. The optimal portfolio of water entitlements needs to encapsulate this information in order to determine which entitlements to purchase, the number needed and their location in the river system in order to deliver net social benefits. The optimal portfolio of entitlements is further complicated by the climate transitioning from a known mean and variance to a new mean and variance. The spatial impact of climate change on water resources is not uniform. Hence what is seen as a good portfolio now may in fact be sub-optimal in the future. The aim of this paper is to illustrate the benefits of a state contingent framework for describing the optimal portfolio of water entitlements under a changing climate. By explicitly determining the real value of water entitlements in normal, drought and wet states of nature, we can determine the Buy-Back’s ability to achieve the Basin Plan’s goals and suggest an optimal entitlement mix to deliver long-term economic, social and environmental benefits under climate change.
    Keywords: Water, Property Rights, Climate Variability, Climate Change, The Basin Plan and Buy-Back, Environmental Economics and Policy, Resource /Energy Economics and Policy, Q25,
    Date: 2012
  7. By: Curtis, John A.; di Cosmo, Valeria; Deane, Paul
    Abstract: This paper examines the effect on Ireland's Single Electricity Market (SEM) of the UK's unilateral policy to implement a carbon price floor for electricity generation based on fossil-fuel. We simulate electricity markets and find that, subject to efficient use of the interconnectors between the two markets, a carbon price floor will lead to carbon leakage, with associated emissions in the Republic of Ireland increasing by 8% and SEM's electricity prices increasing by 2.4%. As the carbon price floor does not affect the number of ETS allowances no change is anticipated in aggregate European emissions. We also find that the EU's proposal to postpone ETS allowance auctions will reduce Irish emissions somewhat but that the trade opportunities associated with the UK carbon price floor means that emissions reductions in Ireland will be lower than might have been otherwise. A carbon price floor will result in substantial tax revenues and had the carbon price floor been implemented in Northern Ireland the larger share of taxes remitted would be paid by Republic of Ireland customers within the SEM. A carbon price floor in the Republic of Ireland is a potential policy option that would generate revenues in excess of ?250 million but associated electricity prices increases in excess of 17% would have significant negative welfare and competitiveness effects.
    Date: 2013–06
  8. By: Ralf Martin; Mirabelle Muûls; Laure B. de Preux; Ulrich J. Wagner
    Abstract: When regulated firms are offered compensation to prevent them from relocating, efficiency requires that payments be distributed across firms so as to equalize marginal relocation probabilities, weighted by the damage caused by relocation. We formalize this fundamental economic logic and apply it to analyzing compensation rules proposed under the EU Emissions Trading Scheme, where emission permits are allocated free of charge to carbon intensive and trade exposed industries. We show that this practice results in substantial overcompensation for given carbon leakage risk. Efficient permit allocation reduces the aggregate risk of job loss by more than half without increasing aggregate compensation.
    JEL: F18 H23 H25 Q52 Q54
    Date: 2013–06
  9. By: Alice Favero, Yale University, FEEM and CMCC (Yale University, FEEM and CMCC); Robert Mendelsohn (Yale University)
    Abstract: As policy makers consider stringent targets for greenhouse gas emissions, integrated assessment models are increasingly relying on biomass energy as a critical energy source. However, it is not clear how much woody biomass to expect across time and across the planet. The integrated assessment models simply do not have enough detail about global forests and arable land to make careful forecasts of biomass supply over time. Integrating the complex dynamic demand for bioenergy from the IAMs with the complex dynamic structure of forests and forest supply is a daunting intertemporal task. This study examines the market for woody biomass by combining the integrated assessment model WITCH with the global dynamic forestry model GTM. Three carbon tax schedules are used to simulate different mitigation policies that lead to radiative forcing levels of 3.7, 3.2 and 2.5 W/m2 and a baseline scenario with no mitigation policies. WITCH determines the demand for woody biomass and GTM determines the supply of woody biomass over time. Moving from a mild to stringent mitigation policy would increase the demand of woody biomass from 8.2 to 15.2 billion m3/yr while the international price of wood would increase 4 to 9 times relative to the baseline scenario by 2100. This would shrink the demand for industrial wood products from 80% to 90% with the biomass program. Forest area will expand by 70-95% leading to increased storage of 685-1,279 GtCO2 in forest by 2100. Overall, the biomass program with the CCS technology plays a key contribution to overall GHG emission reductions in all scenarios contributing 20-27% of all mitigation for 2020-2100.
    Keywords: Bio-energy, Carbon Sequestration, Forestry, Integrated Assessment Model
    JEL: Q23 Q42 Q54
    Date: 2013–04
  10. By: Teixidó Figueras, Jordi; Duro Moreno, Juan Antonio
    Abstract: This paper performs an empirical Decomposition of International Inequality in Ecological Footprint in order to quantify to what extent explanatory variables such as a country’s affluence, economic structure, demographic characteristics, climate and technology contributed to international differences in terms of natural resource consumption during the period 1993-2007. We use a Regression- Based Inequality Decomposition approach. As a result, the methodology extends qualitatively the results obtained in standard environmental impact regressions as it comprehends further social dimensions of the Sustainable Development concept, i.e. equity within generations. The results obtained point to prioritizing policies that take into account both future and present generations. Keywords: Ecological Footprint Inequality, Regression-Based Inequality Decomposition, Intragenerational equity, Sustainable development.
    Keywords: Desenvolupament sostenible, Home -- Influència sobre la natura, Energia -- Consum, 33 - Economia,
    Date: 2013
  11. By: Glachant, Matthieu; Dussaux, Damien; Meniere, Yann; Dechezlepretre, Antoine
    Abstract: Using novel data on patents, trade of equipment goods, and foreign direct investments and insights from the economic literature, the paper seeks to lay out the state of knowledge on the role of innovation and the diffusion of technologies in the greening of global value chains as well as some of the main policy issues. A special emphasis is put on developing countries -- distinguishing emerging economies and least-developed countries -- and on climate-mitigation technologies. Emerging economies are already reasonably well integrated in the global economy. As a consequence, technologies flow in through the imports of capital goods and local investments by multinational enterprises owning technologies. Pushing further technology transfer requires strengthening intellectual property rights, lowering barriers to trade and investments and improving technological absorptive capacities. In contrast, their role in innovation is limited. Standard tools of innovation policy - public research and development, public support to private research and development, better access to finance - should develop. But studies also suggest that governments should introduce more stringent environmental policies with proper enforcement at home to go beyond the adoption of foreign technologies. The situation of least-developed countries is very different: they do not import green technologies and low barriers to trade and foreign direct investment or strict intellectual property rights are unlikely to trigger technology transfer. In these countries, the focus should be on building technological capacities.
    Keywords: Environmental Economics&Policies,Technology Industry,ICT Policy and Strategies,E-Business,Climate Change Mitigation and Green House Gases
    Date: 2013–05–01
  12. By: Wood, Peter J.; Heindl, Peter; Jotzo, Frank; Löschel, Andreas
    Abstract: This paper examines the linking of price-based and quantity-based provision of a public good by two parties in the example of pollution control under a global quantity constraint, using a stochastic partial-equilibrium model. One country chooses a price-based instrument (tax) and trades with another that lets its emissions price adjust. The expected cost for the price-setting country and the combined expected cost is higher than if both countries choose a quantity-based instrument, and the country with the quantity instrument stands to benefit in terms of expected net costs. The effect increases when the relative size of the country with the price-based constraint increases; and increases with respect to the degree of correlation in ex-ante uncertain abatement costs. While the quantity-setting country benefits from lower expected costs in most circumstances, the variance in cost can be much higher if its costs are correlated with the price-setting country. The optimal ex-ante tax rate differs from that under quantity-quantity linking. These results have important implications for instrument choice for the regulation of greenhouse gases and other pollutants and for the design of international agreements when there are domestic preferences for price regulation. The model is applicable to situations involving the provision of a fixed quantity of a public good beyond pollution control. --
    Keywords: Instrument Choice,Linking,Climate Policy,Prices vs. Quantities
    JEL: Q52 H23 K32
    Date: 2013
  13. By: Claire Brunel and Arik Levinson (Department of Economics, Georgetown University)
    Abstract: Researchers have long been interested in whether environmental regulations discourage investment, reduce labour demand, or alter patterns of international trade. But estimating those consequences of regulations requires devising a means of measuring their stringency empirically. While creating such a measure is often portrayed as a data collection problem, we identify four fundamental conceptual obstacles, which we label multidimensionality, simultaneity, industrial composition, and capital vintage. We then describe the long history of attempts to measure environmental regulatory stringency, and assess their relative success in light of those obstacles. Finally, we propose a new measure of stringency that would be based on emissions data and could be constructed separately for different pollutants.
    Keywords: JEL Codes:
    Date: 2013–01–02
  14. By: Valentina Bosetti (Department of Economics, Bocconi University, Fondazione Eni Enrico Mattei and Euro-Mediterranean Center on Climate Change); Elena Verdolini (Fondazione Eni Enrico Mattei and Euro-Mediterranean Center on Climate Change)
    Abstract: This paper investigates the role of Intellectual Property Rights (IPR) protection and Environmental Policies (EPs) on clean (renewable) and dirty (fossil-based) technology diffusion from top-innovators. IPR protection and EPs are extensively debated policy tools, as IPR protection addresses knowledge market failure, while EPs respond to pressing local and global environmental externalities. A model of monopolistic competition inspired by the recent trade literature shows that the profits associated with exporting a blueprint are a function of the quality of the idea and of market and institutional characteristics of the receiving country. We test the empirical implications of our model using patent data in renewable and fossil efficient power technologies for 13 top innovating countries and 40 patenting authorities. We improve on previous contributions by accounting for unobserved heterogeneity and for the endogeneity of policy proxies through a Generalized Method of Moment estimator. We show that knowledge transfer through patent duplication increases with the level of IPR protection, but with slight diminishing marginal returns. The effect is stronger for clean technologies, which are arguably less mature and more sensitive to uncertainty. Commitment to EPs also increases the incentives for patent duplication. The magnitude of the effect is conditional on the nature of the technology and on the specific policy instrument.
    Keywords: Technology Diffusion and Transfer, Innovation, Patents, Energy Technologies, Environmental Policy, Intellectual Property Rights
    JEL: O33 O34 Q55
    Date: 2013–05
  15. By: Leonardi, Emanuele
    Abstract: The paper aims at establishing a philosophical comparison between the notion of green economy and the concept of bio-based economics. Against the background of the current, devastating economic crisis, they both represent an attempt to overcome a growth impasse through the incorporation of the environmental limit as a new terrain for accumulation and valorization. Otherwise put, both green economy and bio-based economics assume that economic growth and environmental preservation not only are not contradictory, but can actually set in motion – through the discursive formation of sustainability – a virtuous circle in which the increase of one element fosters a parallel increase of the other. The analysis of such an affinity will be historically analyzed by referring to Michel Foucault's biopolitical analyses. Subsequently, the crucial notion of bio-mimicry will be theoretically approached, as will the dangers embodied in the currently under way process of economization of nature. The argument is that by modelling nature according to industrial needs or competitive frameworks a crucial risk emerges: the possibility of tackling an undeniable environmental crisis by deepening an already unjust social polarization. By contrast, a public goods or common-based perspective would provide a theoretical background for tackling the social, economic and ecological crises simultaneously. For such a background to emerge, however, market competitiveness as well as sacred property rights regimes should be substituted by common cooperation and sharing-cultures.
    Keywords: green economy, economization of nature, bio-mimicry, Michel Foucault, liberalism/neoliberalism, Environmental Economics and Policy, International Development, Q50, Q57,
    Date: 2013–06
  16. By: Kapfer, M.; Kantelhardt, J.; Eckstein, K.; Hübner, R.
    Abstract: Agriculture produce commodities and but also influence the environment. However, even if the value of commodities is easy to determine, it is difficult to assess the efficiency of agricultural production at site level. Furthermore, the valuation of environmental impact is complex. Non-parametric approaches such as DEA allow for an assessment of environment and economic performance. We implement a plot-specific approach combining GIS and DEA models. This allows a spatially explicit assessment of agricultural land use for different subjects such as ecology and economy. In a second stage DEA-model, the impact of farm- and site-specific characteristics on efficiency is analysed.
    Keywords: agricultural land use, data envelopment, environment-oriented technical efficiency, economy-oriented technical efficiency, Environmental Economics and Policy, Land Economics/Use, Productivity Analysis, Q12, Q26, Q57,
    Date: 2013–06
  17. By: Paul E. Carrillo (Department of Economics/Institute for International Economic Policy, George Washington University); Arun S. Malik (Department of Economics/Institute for International Economic Policy, George Washington University); Jiseon Yoo (Department of Economics/Institute for International Economic Policy, George Washington University)
    Abstract: Programs to reduce tra¢ c congestion and air pollution by restricting use of motor vehicles on working days have generally not met with success given existing studies of such programs in a number of cities. We conduct the Örst study of Quito, Ecuadorís three-year-old Pico y Placa program and Önd that it has reduced ambient concentrations of carbon monoxide (CO), a pollutant primarily emitted by vehicles, by 9-11% during peak tra¢ c hours. During an extended daytime period that encompasses hours when population exposure to air pollution is likely to be highest, CO concentrations have been reduced by approximately 6%. Given that ambient concentrations of CO generally track the spatial and temporal distributions of tra¢ c, these reductions in pollution suggest similar reductions in vehicle áows.
    Keywords: Forecasting, driving restrictions, traffic congestion, air pollution, difference-in-differences
    JEL: R41 D62 Q53 C31 C54
    Date: 2013–01
  18. By: Severini, Nicola
    Abstract: The paper focuses on some aspects concerning the organization and management of fisheries in the Adriatic sea, in particular in the Northern and Central part, identified as Geographical Sub-Area 17 (GSA 17 – High Adriatic sea). This area includes Italy, Slovenia and Croatia and it has a high environmental importance due to the presence of the lagoon and high eco-biological ecosystems. The Northern-Central Adriatic area is one of the most productive areas of the Mediterranean Sea and one of the major fishing ground in Southern Europe. The good management of the area implies a cross-border collaboration between countries and a common regulation in order to avoid market distortion, stocks overexploitation and unevenly conservation of natural resources. The creation of a Fishing District between the two sides of Adriatic Sea could help to find a common governance of the area and could be a good solution for the implementation of the Common Fishery Policy in future. The Social-Economic Fishing and Aquaculture Observatory of Chioggia (VE) is one of the members of the Technical Group and plays an important role in this cross-border collaboration.
    Keywords: fishery, natural resources, governance, district, Common Fisheries Policy, Agricultural and Food Policy, Livestock Production/Industries, Production Economics, Q22,
    Date: 2013–06
  19. By: Gallier, Carlo; Löschel, Andreas; Sturm, Bodo
    Abstract: This paper investigates the extent to which the Fukushima Daiichi nuclear disaster of March 2011 has had an impact on the private demand for climate protection in Germany. Data are taken from two framed field experiments (Löschel et al. 2013a, b) conducted before and after the disaster. We find that the demand for climate protection in the experiment after the nuclear disaster is significantly higher than in the experiment before the disaster. --
    Keywords: Experimental economics,demand for climate protection
    JEL: Q51 Q54 C93
    Date: 2013
  20. By: Marconi, V.; Raggi, M.; Viaggi, D.
    Abstract: Agriculture is the main source of nitrogen loading (EEA, 2012) and is the sector with the largest remaining emission reduction potential (Sutton et al., 2011). Furthermore, surpluses of nitrogen are forecast to grow in the next decade (FAO, 2008). The objective of this study is to evaluate the determinants of the use of nitrogen inputs in agriculture, and the effects of RDP implementation in Emilia-Romagna on preventing nitrate pollution through a spatial econometric regression model. Firstly, we carried out an estimation of both inorganic and organic nitrogen input in agriculture at the municipality scale for year 2000 and 2010..Secondly, we performed a Moran’s statistics and a LISA (Local Indicators of Spatial Association; Anselin, 1995) analysis in order test the data for local spatial autocorrelation. Finally, in order to provide a quantitative evaluation of the application of the agri-environmental measures on the impact of farming systems on water quality, we constructed two spatial regression models: INORGANIC AND ORGANIC. Spatial dependence was included to the regressions (OLS) through spatial lag and spatial error. The INORGANIC model explains more than 70% of the dependent variable and suggest that participation to the measure 214 is not likely to be important for explaining the reduction of the Inorganic Nitrogen in the municipalities of Emilia Romagna. Significant variables are farm’s size, population density, location in NVZs and share of certified organic surface on the UAA. The same regressors could not explain the dependent variable in the case of the ORGANIC model. The availability of better estimation of changes in nitrogen inputs, such as the calculation at the farm scale, would be an important component to allow for a more robust use of spatial econometrics in RDP evaluation related to Nitrogen reduction.
    Keywords: agri-environmental scheme, nitrogen, policy analysis, spatial econometric, rural development plans., Agricultural and Food Policy, Environmental Economics and Policy, Farm Management,
    Date: 2013–06
  21. By: Signorotti, Claudio; Marconi, Valentina; Raggi, Meri; Viaggi, Davide
    Abstract: The main objective of the paper is to inquiry if the Agri-Environmental Schemes (AES’s) included in the Rural Development Plan in Emilia Romagna have played a role in enhancing the Nature Value of regional farmland. High Nature Value (HNV) farmland is a concept that aims to identify the agricultural systems which are hospitable to animal and vegetal species, leading to a level of biodiversity which is particularly high. As a preliminary step, we measured the level and distribution of the HNV in Emilia Romagna at the municipality level, as derived by elaborations on the data of the two last censuses, year 2000 and 2010. Then the relationship between HNV and participation to rural development measures is analyzed in both directions of causality with econometric techniques. First we investigated the relationship between the participation to measure 214 (AES’s) of the Rural Development Plan and the HNV in order to explore if the participation is affected by the HNV. Rather than integrated farming or the protection of less favoured areas, ordinary least square models suggest a link between organic farming and HNV farmland: the results indicate that participation to the measure of organic farming in the Rural Development Plan 2007-2013 is significantly dependent upon the HNV in year 2000. Secondly, as an effect of the participation to AES’s on the HNV we analyzed the change of HNV between 2000 and 2010 with ordinary least squares and spatial regression techniques. The regression models show that the variations depend upon the farmers’ participation to the organic farming measure and the presence of a mountainous territory. With regard to the other measures, integrated farming is not relevant and the participation to the measure for less favoured areas is related to the variation in a negative way.
    Keywords: rural development plan, agri-environmental scheme, High Nature Value, statistical indicator, spatial regression, Environmental Economics and Policy, C43, Q15, Q57,
    Date: 2013–06
  22. By: Stephen C. Smith (Department of Economics/Institute for International Economic Policy, George Washington University); Arun S. Malik (Department of Economics/Institute for International Economic Policy, George Washington University)
    Abstract: This paper constitutes the introductory essay for the special issue of Climate Change Economics, edited by Malik and Smith, forthcoming in 2012, examining adaptation to climate change in low-income countries. The paper first characterizes different types of adaptations from an economic perspective. It then puts in context the contributions of two articles that address the problem of making adaptation decisions in the face of uncertainty with an emphasis on developing country circumstances. The paper then proceeds to examines data and methodological problems faced in empirical research on adaptation, and, as part of a broader review, examines contributions of two articles that present econometric evidence on adaptation in Ethiopia and India. The paper then introduces issues in the emerging research area of interactions between autonomous and planned adaptations and discusses contributions in the CCE special issue, particularly on how government agricultural extension affects farm household adaptation and how a government 'awareness' campaign encouraging behavioral responses to heat waves can reduce mortality. Finally, the paper identifies important questions on adaptation in low-income countries that still remain largely unaddressed.
    Keywords: Adaptation to Climate Change, Low-Income Countries, Developing countries
    JEL: Q54 O13
    Date: 2012–08
  23. By: Giannoccaro, Giacomo; Bartolini, Fabio; Raggi, Meri; Viaggi, Davide
    Abstract: Despite a large literature about energy production from renewable resources, the specific interplay between farm characteristics, market, local regulation and the CAP in the adoption of energy-related technologies by farmers is still poorly studied. This paper aims at analyzing the farmers’ intentions towards the on-farm adoption of energy crops or technologies for renewable energy production under alternative policy scenarios. The analysis is based on the econometric analysis of adoption intentions by a sample of more than 2,300 farm-households interviewed in nine European countries. Stated intentions towards the willingness to adopt energy crops/technology for renewable energy production, are expressed firstly under a scenario with the current CAP post 2013 (Baseline) and secondly under a scenario with the complete abolishment of the CAP support (No CAP). The study confirms that the CAP influences farmers’ decision on the adoption of energy crops/technologies for renewable energy production in the next years. Other relevant variables are farm typology specializations, size of owned and rented land and farmer’s education and advices. Moreover, scenario effects seem to be uneven among European States likely due to the interconnected effects with national renewable energy market and regulation.
    Keywords: Common Agricultural Policy, renewable energy, technology adoption, farmer’s behavior, econometric analysis, Agricultural and Food Policy, Environmental Economics and Policy, Farm Management, Q18, Q10,
    Date: 2013–06
  24. By: Arata, L.; Sckokai, P.
    Abstract: Agri-environmental schemes (AES) of the European Union are the most important measure in terms of share on the public budget for Rural Development. Although the farmers uptake of AES is expected to strongly impact even farmer’s behavior, in the literature the attempts to investigate this impact are scarce. Our study applies a difference-in-differences propensity score matching estimator in order to perform a comparative analyses of the effects of AE measures on farmer’s practises and economic performances across five EU Member States. Results show differences in the AES effects across country as well as differences across farmers of the same country according to what extent the farm income is dependent on the AE payment. Our analyses suggests that the AE payment in Spain is not enough to compensate the large drop of the per hectare income after participation and the AE uptake does not seem to promote effectively environmental-friendly farm practises. In France and Italy the sustainable practises of farmer participants lead to an income foregone that is not fairly compensated by the AE payments. Only in Germany and UK the AE payments seem to compensate the income loss that results from changes in farmers production choices.
    Keywords: agri-environmental schemes, propensity score matching, difference-in-differences, Agricultural and Food Policy, Community/Rural/Urban Development, C21, Q15, D22,
    Date: 2013–06
  25. By: Grazia Cecere (Institut Mines Télécom, Télécom Ecole de Management, Université Paris Sud France. France); Susanna Mancinelli (University of Ferrara Italy); Massimiliano Mazzanti (University of Ferrara, SEEDS & CERIS CNR, Italy)
    Abstract: Though reduction is at the top of the waste management hierarchy, EU policies have historically introduced waste management incentives mainly concerning waste recovery and recycling, in addition to actions aimed at reducing disposal in landfills. Only very recently have EU policies started defining targets for waste reduction. Against this backdrop, we aim to examine whether individual behavior towards waste reduction is more strongly driven by extrinsic motivations such as social norms, or intrinsic motivations such as purely altruistic preferences. We exploit a large new survey that covers thousands of individuals for the EU27, to test the role of motivations when people are faced with collective management of the public good. We find that diverse motivations are behind the reduction of food waste: extrinsic motivations nevertheless increase the likelihood of producing more waste. Green consumption / recycling-oriented attitudes and individualistic thinking about waste management relate to ‘waste producers’. This shows that in order to go beyond a recycling-oriented society towards reduction of the source of waste externality – its generation – the nature of social preferences matters. Behavior patterns leading to waste reduction are less socially oriented, less exposed to peer pressure and more reliant upon purely ‘altruistic’ social attitudes. Policy makers should learn from the relevant insights on social behavior we here address if our societies aim to fully integrate the idea of waste reduction alongside recycling in the future.
    Keywords: Intrinsic Motivations, Extrinsic Motivations, Social Norms, Recycling, Waste Reduction, Green Preferences
    JEL: Q53 R11 K42
    Date: 2013–05
  26. By: Valeria Costantini; Giorgia Sforna
    Abstract: This paper contributes to the issue of the uneven distribution of Clean Development Mechanism (CDM) projects among developing countries. By applying a gravity model to a panel dataset at bilateral country level, we find that well-established export flows from developed economies towards developing countries explain a large portion of the geographical distribution of CDM projects. The policy implication we derive is that a sort of lock-in effect in the CDM relationship should be avoided by enhancing the institutional framework in developing countries hosting CDMs as well as by reinforcing compulsory rules for CDM destination toward the least developed economies. On the contrary, if market forces are left free to influence CDM destination, cost effectiveness in abatement efforts is not the driving force influencing the decision on destination market, but other criteria based on private benefits seem to prevail.
    Keywords: Kyoto Protocol; Clean Development Mechanism, Export Flows; Gravity Model; Institutional Quality
    JEL: F14 F18 Q54 Q56
    Date: 2013–06
  27. By: Enrica De Cian (Fondazione Eni Enrico Mattei (FEEM) and CMCC); Michael Schymura (Centre for European Economic Research (ZEW)); Elena Verdolini (Fondazione Eni Enrico Mattei (FEEM) and CMCC); Sebastian Voigt (Centre for European Economic Research (ZEW))
    Abstract: This study analyzes energy intensity trends and drivers in 40 major economies using the WIOD database, a novel harmonized and consistent dataset of input-output table time series accompanied by environmental satellite data. We use logarithmic mean Divisia index decomposition to (1) study trends in global energy intensity between 1995 and 2007, (2) attribute efficiency changes to either changes in technology or changes in the structure of the economy, and (3) highlight sectoral and regional differences. We first show that heterogeneity within each sector across countries is high. These general trends within the sectors are dominated by large economies, first and foremost the United States. In most cases, heterogeneity is lower within each country across the different sectors. Regarding changes of energy intensity at the country level, improvements between 1995 and 2007 are largely attributable to technological change while structural change is less important in most countries. Notable exceptions are Japan, the United States, Australia, Taiwan, Mexico and Brazil where a change in the industry mix was the main driver behind the observed energy intensity reduction.
    Keywords: Energy Intensity, Logarithmic Mean Divisia Index Decomposition, WIOD Database
    JEL: Q43 C43
    Date: 2013–04
  28. By: Brooks, Karen; Zorya, Sergiy; Gautam, Amy; Goyal, Aparajita
    Abstract: This paper sheds light on how to harvest the"youth dividend"in Sub-Saharan Africa by creating jobs in agriculture. The agriculture that attracts the youth will have to be profitable, competitive, and dynamic. These are the same characteristics needed for agriculture to deliver growth, to improve food security, and to preserve a fragile natural environment. With higher priority accorded to implementation of well-designed public investments in agriculture, continued progress on regulatory and policy reform, and attention to assure inclusion of young people in Africa's agricultural renaissance, the sector's handsome youth dividend can be collected and widely shared.
    Keywords: Access to Finance,Banks&Banking Reform,Rural Development Knowledge&Information Systems,Environmental Economics&Policies,Adolescent Health
    Date: 2013–06–01
  29. By: Zuo, Alec; Nauges, Celine; Wheeler, Sarah
    Abstract: Farmers are well known to be risk-averse. Although a considerable literature has focused on the role water markets play to allocate water more efficiently, none has explicitly studied the risk management role water markets play in irrigators’ decision making. We used a two-step empirical procedure to estimate the impacts of variability in profit and downside risk in profit on the volume of water allocation purchased and sold using an unbalanced panel data sample of 1,449 farm observations across four industries in the southern Murray-Darling Basin in Australia from 2006-07 to 2009-10. We show that farmers experiencing higher variability in profit and facing more downside risk purchase greater volumes of water allocations, and this is supported across all irrigated industry sectors (namely, dairy, broadacre, horticulture, and viticulture). There was only weak evidence found for the broadacre industry to suggest that higher variance in profit and greater downside risk drive greater volume of water allocations sold. The different findings between buying and selling water allocations are reflective of the fact that water allocation sellers represent a more heterogeneous group of farmers than water allocation buyers, and that sellers of water allocations may be more strategic in general with their farm management overall.
    Keywords: water allocation, farm management, murray-darling basin, water trading, Environmental Economics and Policy, Resource /Energy Economics and Policy, Risk and Uncertainty, Q25,
    Date: 2012
  30. By: Stephen C. Smith (Department of Economics/Institute for International Economic Policy, George Washington University); Saudamini Das (Department of Economics, Swami Shradhanand College, University of Delhi)
    Abstract: Heat waves, defined as an interval of abnormally hot and humid weather, have been a prominent killer in recent years. With heat waves worsening with climate change, adaptation is essential; one strategy has been to issue heat wave warnings and undertake awareness campaigns to bring about behavioral changes to reduce heat stroke. Since 2002, the Indian state of Odisha has been undertaking a grassroots awareness campaign on "dos and don'ts" during heat wave conditions through the Disaster Risk Management (DRM) program. Selection criteria for DRM districts were earthquake, flood, and cyclone incidence; but subsequently heat wave awareness also received intensive attention in these districts. We present quasi-experimental evidence on the impact of the program, taking DRM districts and periods as treatment units and the rest as controls, analyzing the impact on the death toll from heat stroke for the 1998 to 2010 period, using difference-in-difference (DID) regressions with a district level panel data set and a set of control variables. We find indications of program effectiveness with initial DID specifications, but results are not strongly robust. We then take into account a statewide heat wave advertising program, to which the poor have limited exposure but which may also provide spillover benefits, using a triple differencing approach; results suggest the heat wave awareness programs may have complementary impacts. We examine research strategies for much-needed improvement in the precision of impact evaluation results for innovative programs of this type.
    Keywords: Adaptation to climate change, Awareness campaigns, Heat waves, Disaster Risk Management Program, India, Odisha, Difference-in-difference
    JEL: Q54 O13 I18
    Date: 2012–05
  31. By: Sodano, V.
    Abstract: In this paper Critical Discourse Analysis (CDA) is used to uncover hidden political agenda and value systems concealed behind the alleged “value-free” discourse of EU and US governments on the bioeconomy. The main assumption of the paper is that the claimed social benefits of the bioeconomy, far from relying on sound scientific arguments (as stated in government documents), are instead false promises made in the interest of profits of powerful transnational companies (TNCs). The analysis is carried out on four publications which represent the voices of proponents (the EU and US governments) and the opponents (the two civil society organizations, ETC group and Global Forest Coalition) of the bioeconomy. The results of text analysis indicate that all the four texts exhibit some ideological biases. Nevertheless, pro bioeconomy documents prove to be far more ideologized than those against. The general conclusion of the research is that the debate on the risks and benefits of the bioeconomy needs to be cleansed of the ideological prejudices that characterize both its supporters and opponents and instead enriched with transparency and democratic political confrontation.
    Keywords: bioeconomy, discourse analysis, ideology, neoliberalism, Environmental Economics and Policy, Research and Development/Tech Change/Emerging Technologies, Research Methods/ Statistical Methods, Q01, Q58,
    Date: 2013–06
  32. By: Patricia Crifo (Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X, UP10 - Université Paris 10, Paris Ouest Nanterre La Défense - Université Paris X - Paris Ouest Nanterre La Défense - Ministère de l'Enseignement Supérieur et de la Recherche Scientifique, CIRANO - Centre interuniversitaire de recherche en analyse des organisations - Université du Québec à Montréal); Vanina Forget (Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X)
    Abstract: Cet article examine les déterminants économiques des pratiques de responsabilité sociale et environnementale des entreprises (RSE), à savoir l'intégration volontaire de facteurs environnementaux, sociaux et de gouvernance dans la stratégie des entreprises. Nous présentons la littérature théorique et empirique dans un cadre unifié qui explique le développement de ces pratiques de RSE en se fondant sur trois catégories d'imperfections de marché : l'existence d'externalités et biens publics ; la concurrence imparfaite et enfin les contrats incomplets. Nous examinons également l'impact de la RSE sur la performance et le bien-être social et dégageons des pistes de recherche futures.
    Date: 2013–06–05

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