nep-env New Economics Papers
on Environmental Economics
Issue of 2013‒07‒15
sixty-one papers chosen by
Francisco S.Ramos
Federal University of Pernambuco

  1. Carbon pricing and the precautionary principle By Quiggin, John
  2. Considering the Economic Value of Natural Design Elements at City Scale By Baghdadi, Omniya el-; Desha, Cheryl; Hargroves, Karlson
  3. Regional, sectoral and temporal differences in carbon leakage By Lennox, James; Turner, James; Daigneault, Adam; Jhunjhnuwala, Kanika
  4. Evaluating environmental auctions By Schilizzi, Steven G.M.
  5. Unilateral Climate Policy: Harmful or even Disastrous? By Hendrik Ritter; Mark Schopf
  6. Community values for the benefits of carbon farming: a choice experiment study By Massam, G.; Kragt, M.E.; Burton, M.
  7. Economics of Prioritising Environmental Research By Jeffrey, Scott; Pannell, David
  8. Greening Growth in Luxembourg By Nicola Brandt
  9. Inter-household variations in environmental impact of food consumption in Finland By Irz, Xavier; Kurppa, Sirpa
  10. Endogenous Participation in a Partial Climate Agreement with Open Entry: A Numerical Assessment By Fabio Sferra; Massimo Tavoni
  11. How I learned to stop worrying and love the RET By Quiggin, John
  12. The "greening" of industrial policy, headwinds and a possible symbiosis By Karl Aiginger
  13. Compensating for environmental damages By Pascal Gastineau; Emmanuelle Taugourdeau
  14. The Relationship between Religious Persuasion and Climate Change Attitudes in Australia By Morrison, Mark; Duncan, Roderick; Parton, Kevin; Sherley, Chris
  15. Modelling the balanced transition to a sustainable economy By Georges BASTIN; Isabelle CASSIERS
  16. On Strategic Ignorance of Environmental Harm and Social Norms By Thunström, Linda; van 't Veld, Klaas; Shogren, Jason F.; Nordström, Jonas
  17. Economic assessment of technologies aimed at reducing air pollution in rice-wheat farming system in north-west India By Crean, Jason; Milham, Nick; Singh, Rajinder
  18. Residents' Influence on the Adoption of Environmental Norms in Tourism By Malgorzata Ogonowska; Dominique Torre
  19. Global Water Withdrawal Trends: Does Democracy Matters? By Buitenzorgy, Meilanie; Ancev, Tihomir
  20. Environmental Catastrophes under Time-Inconsistent Preferences By Thomas Michielsen
  21. Weather, Salience of Climate Change and Congressional Voting By Herrnstadt, Evan; Muehlegger, Erich
  22. The Influence of Economic Growth, Population, and Fossil Fuel Scarcity on Energy Investments By Enrica De Cian; Fabio Sferra; Massimo Tavoni
  23. The Environmental cost of Skiing in the Desert? Evidence from Cointegration with unknown Structural breaks in UAE By Shahbaz, Muhammad; Sbia, Rashid; Hamdi, Helmi
  24. Comparing models of unobserved heterogeneity in environmental choice experiments By Kragt, Marit E.
  25. Estimating the cost of air pollution in South East Queensland: An application of the life satisfaction non-market valuation approach By Ambrey, Christopher L.; Chan, Andrew Yiu-Chung; Fleming, Christopher M.
  26. Threshold Preferences and the Environment By Ingmar Schumacher; Benteng Zou
  27. An investigation into the use of experienced utility scores to assess multi-attribute changes in environmental quality By Batstone, Chris; Moores, Jonathan; Baines, James; Harper, Sharleen
  28. Unilateral Emission Cuts and Carbon Leakages In A North--South Trade Model By Partha Sen
  29. El Niño Southern Oscillation and Primary Agricultural Commodity Prices: Causal Inferences from Smooth Transition Models By Ubilava, David
  30. The potential of food waste reduction through the green purchasing By Iwamoto, Hiroyuki
  32. Climate change and adaptation in Australian wheat dominant agriculture: a real options analysis By Hertzler, Greg; Sanderson, Todd; Capon, Tim; Hayman, Peter; Kingwell, Ross
  33. Coping with Climate Change: A Food Policy Approach By Timmer, C. Peter
  34. Informing policy design for water quality improvements in the sugarcane industries adjacent to the Great Barrier Reef: a case study approach By Edwards, Brooke; Sluggett, Robert; East, Miriam
  35. Tradeoff between Non-farm Income and on-farm conservation investments in the Semi-Arid Tropics of India By Nedumaran, S.
  36. The Non-Market Value of Abel Tasman National Park, New Zealand: A Choice Modelling Application By Lee, Peter; Cassells, Sue; Holland, John
  37. Estimating the supply of on-farm biodiversity conservation services by north Australian pastoralists: design of a choice experiment By Greiner, Romy; Ballweg, Julie
  38. Assessment of the Efficiency and Effectiveness of the Reforestation Program of the Department of Environment and Natural Resources By Israel, Danilo C.; Lintag, Jeffrey H.
  39. Upstream-downstream benefit analysis of policy on water use by upstream tree plantations By Nordblom, T.L.; Hume, I.H.; Finlayson, J.D.; Pannell, D.J.; Holland, J.
  40. Disguised Protectionism? Environmental Policy in the Japanese Car Market By KITANO Taiju
  41. Deforestation, forest fallowing, and soil conservation in shifting cultivation By Yoshito Takasaki
  42. Information Technology, Environmental Innovations and Complementarity Strategies By Massimiliano Mazzanti; Davide Antonioli; Francesco Nicolli; Marianna Gilli
  43. Adoption of Waste-Reducing Technology in Manufacturing: Regional Factors and Policy Issues By Giulio Cainelli; Massimiliano Mazzanti; Alessio D'Amato
  44. The Role of CO2-EOR for the Development of a CCTS Infrastructure in the North Sea Region: A Techno-Economic Model and Application By Roman Mendelevitch
  45. Demand side management in an integrated electricity market: what are the impacts on generation and environmental concerns ? By Claire Bergaentzlé; Cédric Clastres
  46. An Example of How Chemical Regulation is Affecting Biosecurity Policy-Making: Mediterranean Fruit Fly in Western Australia By Cook, David C.; Fraser, Rob W.; Weinert, Andrew S.
  47. The effects of experience on preference uncertainty: theory and empirics for environmental goods By Czajkowski, Mikołaj; Hanley, Nick; LaRiviere, Jacob
  48. The activity and lethality of militant groups: Ideology, capacity, and environment By Mierau, Jochen O.
  49. Empirics of the international inequality in CO2 emissions intensity: explanatory factors according to complementary decomposition methodologies By Juan Antonio Duro Moreno; Jordi Teixidó-Figueras; Emilio Padilla Rosa
  50. The limitations of applying benefit transfer to assess the value of ecosystem services in a “generic” peri-urban, coastal town in Australia By Windle, Jill; Rolfe, John
  51. Robust Institutions for Sustainable Water Markets: A Survey of the Literature and the Way Forward By Alexandros Maziotis; Elisa Calliari; Jaroslav Mysiak
  52. Restructuring the Electricity Sector and Promoting Green Growth in Japan By Randall S. Jones; Myungkyoo Kim
  53. Invasive species management in the Pacific using survey data and benefit-cost analysis By Daigneault, A.; Brown, P.
  54. Strategic positioning of international agricultural research centres: Comparative advantage and trade-offs from a transaction cost economics perspective By Kamanda, Josey; Birner, Regina; Bantilan, Cynthia
  55. Comparing regulations to protect the commons: an experimental investigation By Ambec, S.; Garapin, A.; Muller, L.; Reynaud, A.; Sebi, C.
  56. Development and Diffusion of Sorghum Improved Cultivars in India: Impact on Growth and Variability in Yield By Charyulu, D.Kumara; Bantilan, MCS; Rajalaxmi, A
  57. Investigating the effects of sample heterogeneity on the travel cost model for coral diving in Southeast Asia By Doshi, Amar; Pascoe, Sean
  58. From Green Users to Green Voters By Diego Comin; Johannes Rode
  59. Bridging vs. Bonding Social Capital and the Management of Common Pool Resources By Kathy Baylis; Yazhen Gong; Shun Wang
  60. The Vindication of Don Quijote: The impact of noise and visual pollution from wind turbines on local residents in Denmark By Cathrine Ulla Jensen; Toke Emil Panduro; Thomas Hedemark Lundhede
  61. Assessment of the Effectiveness and Efficiency of the Cadastral Survey Program of the Department of Environment and Natural Resources By Llanto, Gilberto M.; Rosellon, Maureen Ane D.

  1. By: Quiggin, John
    Abstract: The problem of climate change has been described as ‘a unique challenge for economics: it is the greatest and. widest-ranging market failure ever seen’ (Stern 2007, p. i). Among the factors that make climate change a difficult, the most important, arguably, is uncertainty about the future course of climate change, and the effect of policies aimed at mitigating climate change. Although there is a large literature on the economic analysis of choice under uncertainty, many crucial issues are poorly understood by policymakers and the general public. In particular, uncertainty about climate change under ‘business as usual’ policies is commonly seen as a reason for inaction. On the other hand, the widely-used ‘precautionary principle’ is generally interpreted as suggesting that early action is desirable. To resolve the conflict between these intuitions, it is necessary to consider in more detail the principles for choice in the face of environmental uncertainty and, particularly, the interpretation of the precautionary principle.
    Keywords: Climate change, the precautionary principle, Environmental Economics and Policy, Resource /Energy Economics and Policy, Q54, Q58,
    Date: 2013–03
  2. By: Baghdadi, Omniya el-; Desha, Cheryl; Hargroves, Karlson
    Abstract: With increasing signs of climate change and the influence of national and international carbon-related laws and agreements, governments all over the world are grappling with how to rapidly transition to low-carbon living. This includes adapting to the impacts of climate change that are very likely to be experienced due to current emission levels (including extreme weather and sea level changes), and mitigating against further growth in greenhouse gas emissions that are likely to result in further impacts. Internationally, the concept of ‘Biophilic Urbanism’, a term coined by Professors Tim Beatley and Peter Newman to refer to the use of natural elements as design features in urban landscapes, is emerging as a key component in addressing such climate change challenges in rapidly growing urban contexts. However, the economics of incorporating such options is not well understood and requires further attention to underpin a mainstreaming of biophilic urbanism. Indeed, there appears to be an ad hoc, reactionary approach to creating economic arguments for or against the design, installation or maintenance of natural elements such as green walls, green roofs, streetscapes, and parklands. With this issue in mind, this paper will overview research as part of an industry collaborative research project that considers the potential for using a number of environmental economic valuation techniques that have evolved over the last several decades in agricultural and resource economics, to systematically value the economic value of biophilic elements in the urban context. Considering existing literature on environmental economic valuation techniques, the paper highlights opportunities for creating a standardised language for valuing biophilic elements. The conclusions have implications for expanding the field of environmental economic value to support the economic evaluations and planning of the greater use of natural elements in cities. Insights are also noted for the more mature fields of agricultural and resource economics.
    Keywords: Climate change, biophilic urbanism, economic value, Environmental Economics and Policy, Land Economics/Use, Research and Development/Tech Change/Emerging Technologies,
    Date: 2013–02
  3. By: Lennox, James; Turner, James; Daigneault, Adam; Jhunjhnuwala, Kanika
    Abstract: While greenhouse gas emissions trading schemes, taxes and other measures have already been implemented or are proposed in many countries and regions, global action to mitigate climate change remains insufficient. A major concern in many countries is that actions taken alone, or even in a limited coalition of countries, might result in competitive disadvantage to firms in emissions-intensive, tradeexposed industries. Additionally, this might results in emissions leakage, reducing environmental effectiveness. The problem of emissions leakage has been extensively studied in the case of mitigation by individual or coalitions of developed countries, most often, using comparative static partial or general equilibrium models. In this paper we use a multiregional dynamic general equilibrium model to study the imposition of harmonised carbon taxes on industrial and energy greenhouse gas emissions in OECD countries and in China. This tax rate is increasing over time. We find that the overall rate of emissions leakage is very low and decreases over time. We also find significant differences between regions in the marginal rates of leakage with respect to their participation (or not) in the carbon-pricing coalition. Differences in leakage rates and their change over time can be related to differences in energy systems, general economic structure and growth rates.
    Keywords: carbon price, emissions, leakage, general equilibrium, Environmental Economics and Policy, Research and Development/Tech Change/Emerging Technologies, Resource /Energy Economics and Policy,
    Date: 2013–02
  4. By: Schilizzi, Steven G.M.
    Keywords: Environmental Economics and Policy,
    Date: 2013–02
  5. By: Hendrik Ritter (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg); Mark Schopf (Faculty of Business Administration and Economics, University of Paderborn)
    Abstract: This paper deals with possible foreign reactions to unilateral carbon demand reducing policies. It differentiates between demand side and supply side reactions as well as between intra- and intertemporal shifts in greenhouse gas emissions. In our model, we integrate a stock-dependent marginal physical cost of extracting fossil fuels into Eichner & Pethig's (2011) general equilibrium carbon leakage model. The results are as follows: Under similar but somewhat tighter conditions than those derived by Eichner & Pethig (2011), a weak green paradox arises. Furthermore, a strong green paradox can arise in our model under supplementary constraints. That means a "green" policy measure might not only lead to a harmful acceleration of fossil fuel extraction but to an increase in the cumulative climate damages at the same time. In some of these cases there is even a cumulative extraction expansion, which we consider disastrous.
    Keywords: Natural Resources, Carbon Leakage, Green Paradox
    JEL: Q31 Q32 Q54
    Date: 2013–06
  6. By: Massam, G.; Kragt, M.E.; Burton, M.
    Abstract: The Australian Government’s Carbon Farming Initiative provides carbon credit incentives for farmers to encourage climate change mitigation on agricultural land. In addition to carbon sequestration or reduced emissions, carbon farming activities often generate ancillary benefits, such as creation of native habitat or erosion prevention. We conduct a choice experiment study to estimate community values for climate change mitigation, and the ancillary effects of carbon farming. Respondents’ WTP depends on their perceptions of climate change and on age, income and political preferences. Respondents who believe in climate change are willing to pay $7.56 per 1% reduction in Australia’s overall greenhouse gas emissions. Respondents are willing to pay $16.88 per 1% increase in the area of native vegetation on farmland, and $2.89 per 1% reduction in soil erosion. The value estimates will allow for more targeted development of carbon farming policies.
    Keywords: Agriculture, ClimateChange Mitigation, Carbon Farming, Choice Modelling, Environmental Economics and Policy, Farm Management, International Relations/Trade, Resource /Energy Economics and Policy,
    Date: 2013–02
  7. By: Jeffrey, Scott; Pannell, David
    Keywords: Environmental Economics and Policy, Research and Development/Tech Change/Emerging Technologies,
    Date: 2013–02
  8. By: Nicola Brandt
    Abstract: With strong economic growth overall and an increasingly important role as a regional economic centre, Luxembourg is experiencing mounting environmental pressures. This is mainly a result of a growing population and a rapid increase in transport, which is dominated by the car, as the number of workers commuting within Luxembourg and from across the border has risen rapidly. Ensuing environmental pressures are sizable, including through CO2 emissions, air pollution and land use changes. Large-scale commuting, combined with low fuel taxes compared to neighbouring countries, has entailed rapid increases in greenhouse gas emissions, which are higher in Luxembourg in per capita terms than almost anywhere else in the OECD. Sound housing policies, urban and transport planning to limit urban sprawl and to promote public transport, and measures to better internalise environmental externalities will be needed to ensure that Luxembourg’s economic growth is compatible with environmental and economic sustainability and the well-being of its population. This working paper relates to the 2012 OECD Economic Survey of Luxembourg (
    Keywords: green growth, transport policies, fuel taxes, urban sprawl, water management
    JEL: H23 H24 Q25 Q53 Q58
    Date: 2013–06–25
  9. By: Irz, Xavier; Kurppa, Sirpa
    Abstract: The environmental impact of food consumption depends on the type of foods consumed and the amount of food wasted. It follows that dietary change represents one means of directing food systems towards greater environmental sustainability. The difficulty, however, lies in developing ways of motivating people to modify what they purchase and eat, as many constraints potentially hinder changes in behaviour, including established habits, limited income, lack of information on environmental impact, cognitive limitations, or the difficulty of accessing environmentally friendly foods. In order to understand those constraints better, and identify potential target groups for intervention, we have analysed the environmental impact of food consumption at household level in Finland, paying particular attention to lower socio-demographic groups. The data originates from the Finnish Household Budget Survey 2006, which gives a detailed record of the foods (259 aggregates) consumed by over 4000 households. The food quantity data are matched to indicators of greenhouse gas emissions and eutrophication, as well as a food composition database. Tests of differences in means of the environmental indicators identify the socio-demographic groups that are statistically different in terms of their environmental impact of food consumption. The total environmental impact is decomposed further into a diet composition effect (i.e., what foods households consume) and a quantity effect (i.e., how much food households consume). Results indicate that the environmental impact varies widely across households, and that this heterogeneity relates both to the types and quantities of foods consumed. We find significant differences in impacts among socio-demographic groups. For instance, household income is strongly and positively associated with greenhouse gas emissions from food consumption (i.e., relatively better off households have a relatively larger climate change impact). Educational level is also positively associated with greenhouse gas emissions, although the relationship is not as strong as with income. On the other hand, differences in environmental impact for household types defined in terms of occupational status are small. Overall, and on the basis of the two indicators considered, the lower socio-demographic groups have a relatively smaller ecological footprint of food consumption than households belonging to relatively higher groups. The results suggest that there is no decoupling of household income growth and environmental impact of food consumption. The relatively better-off and better educated should be targeted for behavioural change in order to promote sustainable food consumption in Finland. Further research is needed to identify the causal mechanisms underlying the associations that we describe and assess how various policies (e.g., labelling regulation, environmental education) would affect the ecological footprint of the Finnish diet.
    Keywords: consumption, sustainability, environmental impact, food, diet, nutrition, Finland, eutrophication, climate change, greenhouse gas emissions, consumption, household, footprint, socio-demographic, socio-economic, demographic, heterogeneity, variability, variation, Consumer/Household Economics, Environmental Economics and Policy, Food Consumption/Nutrition/Food Safety,
    Date: 2013–07
  10. By: Fabio Sferra (Fondazione Eni Enrico Mattei, Euro-Mediterranean Center on Climate Change, Italy); Massimo Tavoni (Fondazione Eni Enrico Mattei, Euro-Mediterranean Center on Climate Change, Italy)
    Abstract: Our purpose is to analyse the effectiveness and efficiency of a Partial Climate Agreement with open entry under a non-cooperative Nash-Equilibrium framework. We evaluate a partial agreement policy in which non-signatory countries can decide to join or to leave a coalition of the willing at any point in time. By means of a simple analytical model and of a numerical integrated assessment model, we assess different coalition structures, and different minimum admission requirements. Our results indicate that a Partial Climate Agreement with open entry can be effective, achieving climate stabilization between 2C and 3C depending on the composition of the coalition of the willing. The policy turns out to be also rather efficient, with only minor losses with respect to a full cooperation agreement. Finally, we quantify the optimal admission requirement in about 40-50% of cumulative abatement.
    Keywords: International Environmental Agreements, Non-Binding Targets, Voluntary Climate Change Actions, Optimal Mitigation Strategies, Fair Burden Sharing in Climate Negotiations, Carbon Leakage
    JEL: C72 F18 Q54
    Date: 2013–06
  11. By: Quiggin, John
    Abstract: In this chapter, it is argued on the contrary that the RET is not merely complementary to the carbon market, but is a welfare-improving policy, even after the introduction of the carbon price. The central argument is that, because of political resistance to carbon pricing, the price has been set at a level that is below that of the optimal path, and must increase more rapidly than would be consistent with a Hotelling rule (Hotelling 1931). The relevant criterion for assessing the RET is not the cost of mitigation relative to the current carbon price but the cost relative to the true shadow price of CO2 emissions, which must be assessed in relation to abatement costs that must be incurred in the future if emissions are to be reduced in line with the government’s stated targets.
    Keywords: Renewable Energy Target, Carbon pricing, Environmental Economics and Policy, Resource /Energy Economics and Policy, Q52, Q42, Q48,
    Date: 2013–05
  12. By: Karl Aiginger
    Abstract: The importance of manufacturing for industrialized countries has been reappraised, specifically in the wake of the financial crisis and of China's rise to world no 1 in manufacturing. A "new industrial policy" should bolster reindustrialization, different from the old selective and interventionist one, with proposals by academia, by the European Commission and many national policy makers in the US, United Kingdom and France. It should be pro competitive, in line with societal needs, integrated with innovation and regional policy building on competitive strength and with "sustainability at centre stage". Environmental standards should no longer be considered as an obstacle to competitive manufacturing but could constitute a driver of green growth. Europe sets targets for increasing energy efficiency, increasing shares of renewable and cutting emission first for 2020 and then for 2050, demanding the reduction of greenhouse gases by 80%-90%, based on new technologies and prices of carbon dioxide of 250 €/t. Headwinds to this ambitious path come from low gas prices specifically in the US, based on a new extraction technology and from the breaking down of the European emission trading. The question now raises whether Europe has to cope with low gas prices as to prevent carbon leakage, or whether Europe can stick to the goals of the envisaged integrated and systemic industrial policy as to raise energy efficiency as well as to reduce carbon emissions by new technologies. A "new industrial policy" would match the US cost advantage in energy by closing the technology deficit, improving skills and going for excellence in energy efficiency and clean technologies.
    Keywords: new industrial policy, climate change, carbon leakage
    JEL: L5 O32 O44 Q3 Q4 Q5
    Date: 2013–05
  13. By: Pascal Gastineau; Emmanuelle Taugourdeau
    Abstract: This paper examines a situation where a decision-maker determines the appropriate compensation that should be implemented for a given ecological damage. The compensation can be either or both in monetary and environmental units to meet three goals: i) minimization of the cost associated with the compensation, ii) no aggregate welfare loss, iii) minimal environmental compensation requirement. The findings suggest that -in some cases - providing both monetary and environmental compensation can be the cost-minimizing option. Minimal compensation constraints can increase total compensation costs but reduce individual gains and losses relative to the initial situation that arise from heterogeneous tradeoffs between income and environmental quality
    Keywords: Environmental Damage, Compensation, Welfare, Inequity
    JEL: H43 Q51 Q57
    Date: 2013
  14. By: Morrison, Mark; Duncan, Roderick; Parton, Kevin; Sherley, Chris
    Abstract: Previous research has demonstrated that religious persuasion can have an impact on environmental attitudes, however less research of this kind has focused on the relationship between religious persuasion and climate change attitudes. Using a survey of 1,927 Australians we examined links between membership of five religious groupings and climate change attitudes, as well as membership of climate change household segments that differ in their acceptance of human induced climate change and the need for policy responses. Differences were found across religious groups in terms of their belief in human induced climate change, consensus among scientists, their own efficacy and the need for policy responses. Using ordinal regression, some of these differences were shown to be due to sociodemographic factors, knowledge, environmental attitude or political conservatism. However, significant effects due to religious persuasion remained, and they range from medium to large in size. Options for responding to these effects are discussed.
    Keywords: religion, climate change, segmentation, political support, Environmental Economics and Policy, Institutional and Behavioral Economics, International Relations/Trade,
    Date: 2013–02
  15. By: Georges BASTIN (UNIVERSITE CATHOLIQUE DE LOUVAIN, Department of Mathematical Engineering,(ICTEAM)); Isabelle CASSIERS (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES), CIRTES an IACCHOS)
    Abstract: We present a simple mathematical model for the transition to a sustainable economy in order to explore the long-run evolution of an economy that achieves environment protection, full recycling of material resources and limitation of greenhouse gas emissions. The main concern is to investigate how balanced economic paths are modified under public policies for transition to sustainability. We consider a world economy with two subregions that are endowed with greenhouse gas emissions and ecological footprint of OECD and non-OECD countries respectively. Then, for the OECD subregion, three different options are investigated : a green growth option that focuses on accelerating the green technological change, a low growth option that focuses on shifting the structure of the economy towards low carbon and low capital intensive activities and a combined green-low growth option that focuses on the limitation of material resources and the abatement of the ecological footprint.
    Keywords: modelling, sustainability, balanced growth, transition
    Date: 2013–06–09
  16. By: Thunström, Linda (Department of Economics and Finance, University of Wyoming); van 't Veld, Klaas (Department of Economics and Finance, University of Wyoming); Shogren, Jason F. (Department of Economics and Finance, University of Wyoming); Nordström, Jonas (Department of Economics, Lund University)
    Abstract: Are people strategically ignorant of the negative externalities their activities cause the environment? Herein we examine if people avoid costless information on those externalities and use ignorance as an excuse to reduce pro-environmental behavior. We develop a theoretical framework in which people feel guilt from causing harm to the environment (e.g., emitting carbon dioxide) and from deviating from the social norm for pro-environmental behavior (e.g., offsetting carbon emissions). Our model predicts that people may benefit from avoiding information on their harm to the environment, and that they use ignorance as an excuse to engage in less pro-environmental behavior. It also predicts that the cost of ignorance increases if people can learn about the social norm from the information. We test the model predictions empirically with an experiment that involves an imaginary long- distance flight and an option to buy offsets for the flight’s carbon footprint. More than half (53 percent) of the subjects choose to ignore information on the carbon footprint alone before deciding their offset purchase, but ignorance significantly decreases (to 29 percent) when the information additionally reveals the social norm, namely the share of air travelers who buy carbon offsets. We find evidence that some people use ignorance as an excuse to reduce pro-environmental behavior— ignorance significantly decreases the probability of buying carbon offsets.
    Keywords: Behavioral; Decision Making; Externality; Ignorance; Social norms
    JEL: D03 D81 D83
    Date: 2013–06–26
  17. By: Crean, Jason; Milham, Nick; Singh, Rajinder
    Abstract: The burning of rice stubbles is widely practised in rice based farming systems in north-west India (Punjab, Haryana and Uttar Pradesh). The practice leads to substantial air pollution and associated adverse health effects, increased greenhouse emissions, loss of soil organic matter and lower soil moisture levels. The recently developed ‘Happy Seeder’ (HS) technology, a tractor powered machine capable of direct drilling wheat in standing rice stubbles, provides an alternative to burning. However, the adoption of this technology has been limited and burning of rice stubbles remains widespread. The Australian Centre for International Agricultural Research (ACIAR) funded research to assess possible policy responses to encourage alternatives to stubble burning. In this paper we use a whole farm model to evaluate potential policy incentives that might lead to the wider adoption. We assess farm level responses to alternative settings and consider the merits of different forms of intervention.
    Keywords: Stubble burning, environmental pollution, technology, policy, rice, Crop Production/Industries, Environmental Economics and Policy, International Relations/Trade,
    Date: 2013–02
  18. By: Malgorzata Ogonowska; Dominique Torre
    Abstract: Since the expansion of environmental awareness and protection in recent decades, market actors, tourists and stake-holders, have been progressively more aware of ecological issues and conscious of existing pollution caused by mass tourism. Therefore, a new concept of sustainable tourism have appeared, ncluding environmental and societal concerns, as well as the development of more responsible products, which meet environmentally conscious consumers' needs. Subsequently, this paper considers the case of a tourism service provider, in a situation of monopoly, facing heterogeneous demand (differentiated by the sensibility to environmental issues) and located in a destination inhabited by a population of residents, more or less active in their resistance to tourism activities. Hence, this paper gives a theoretical framework of this 'service provider - residents - tourists' interaction. It shows that taking into account residents' actions leads the service provider to the reduction of his offer, and in most cases, to choose the sustainable solution.
    Keywords: Economics of Tourism, product heterogeneity, demand heterogeneity, sustainable tourism, residents-tourists relationship, resident actions, environmental norms
    JEL: L83 Q56
    Date: 2013–05
  19. By: Buitenzorgy, Meilanie; Ancev, Tihomir
    Keywords: Environmental Economics and Policy, International Relations/Trade, Resource /Energy Economics and Policy,
    Date: 2013–02
  20. By: Thomas Michielsen (Tilburg University)
    Abstract: I analyze optimal natural resource use in an intergenerational model with the risk of a catastrophe. Each generation maximizes a weighted sum of discounted utility (positive) and the probability that a catastrophe will occur at any point in the future (negative). The model generates time- inconsistency as generations disagree on the relative weights on utility and catastrophe prevention. As a consequence, future generations emit too much from the current generation’s perspective and a dynamic game ensues. I consider a sequence of models. When the environmental problem is related to a scarce exhaustible resource, early generations have an in-incentive to reduce emissions in Markov equilibrium in order to enhance the ecosystem’s resilience to future emissions. When the pollutant is expected to become obsolete in the near future, early generations may however in- crease their emissions if this reduces future emissions. When polluting inputs are abundant and expected to remain essential, the catastrophe becomes a self-fulfilling prophecy and the degree of concern for catastrophe prevention has limited or even no effect on equilibrium behaviour.
    Keywords: Catastrophic Events, Decision Theory, Uncertainty, Time Consistency
    JEL: C73 D83 Q54
    Date: 2013–05
  21. By: Herrnstadt, Evan (University of MI); Muehlegger, Erich (Harvard University)
    Abstract: Climate change is a complex long-run phenomenon. The speed and severity with which it is occurring is difficult to observe, complicating the formation of beliefs for individuals. We use Google Insights search intensity data as a proxy for the salience of climate change and examine how search patterns vary with unusual local weather. We find that searches for "climate change" and "global warming" increase with extreme temperatures and unusual lack of snow. The responsiveness to weather shocks is greater in states that are more reliant on climate-sensitive industries and that elect more environmentally-favorable congressional delegations. Furthermore, we demonstrate that effects of abnormal weather extend beyond search behavior to observable action on environmental issues. We examine the voting records of members of the U.S. Congress from 2004 to 2011 and find that members are more likely to take a pro-environment stance on votes when their home-state experiences unusual weather.
    Date: 2013–05
  22. By: Enrica De Cian (Fondazione Eni Enrico Mattei, Euro-Mediterranean Center on Climate Change, Italy); Fabio Sferra (Fondazione Eni Enrico Mattei, Euro-Mediterranean Center on Climate Change, Italy); Massimo Tavoni (Fondazione Eni Enrico Mattei, Euro-Mediterranean Center on Climate Change, Italy)
    Abstract: This paper examines the dynamics of energy investments and clean energy Research and Development (R&D) using a scenario-based modeling approach. Starting from the global scenarios proposed in the RoSE model ensemble experiment, we analyze the dynamics of investments under different assumptions regarding economic and population growth as well as availability of fossil fuel resources, in the absence of a climate policy. Our analysis indicates that economic growth and the speed of income convergence across countries matters for improvements in energy efficiency, both via dedicated R&D investments but mostly through capital-energy substitution. In contrast, fossil fuel prices, by changing the relative competitiveness of energy sources, create an economic opportunity for radical innovation in the energy sector. Indeed, our results suggest that fossil fuel availability is the key driver of investments in low carbon energy innovation. However, this innovation, by itself, is not sufficient to induce emission reductions compatible with climate stabilization objectives.
    Keywords: Technological change and innovation, Energy investments, R&D Investments, Fossil fuel availability, Fossil fuel prices, Energy Intensity, Carbon Intensity
    JEL: O13 Q Q54 Q55
    Date: 2013–06
  23. By: Shahbaz, Muhammad; Sbia, Rashid; Hamdi, Helmi
    Abstract: The present study explores the relationship between economic growth, electricity consumption, urbanization and environmental degradation in case of United Arab Emirates. The study covers the quarter frequency data over the period of 1975-2011. We have applied the ARDL bounds testing approach to examine the long run relationship between the variables in the presence of structural breaks. The VECM Granger causality is applied to investigate the direction of causal relationship between the variables. Our empirical exercise reported the existence of cointegration among the series in case of United Arab Emirates. Further, we found an inverted U-shaped relationship between economic growth and CO2 emissions i.e. economic growth raises energy emissions initially and declines it after a threshold point of income per capita (EKC exists). Electricity consumption declines CO2 emissions. The relationship between urbanization and CO2 emissions is positive. Exports seem to improve the environmental quality by lowering CO2 emissions in case of UAE. The causality analysis validates the feedback effect between CO2 emissions and electricity consumption. Economic growth and urbanization Granger cause CO2 emissions.
    Keywords: Electricity, Growth, CO2 emissions
    JEL: C5
    Date: 2013–06–22
  24. By: Kragt, Marit E.
    Abstract: Choice experiments have become a widespread approach to non-market environmental valuation. Given the vast range of public opinions towards environmental management changes, it is desirable that analysis of discrete choice data accounts for the possibility of unobserved heterogeneity amongst the population. There is, however, no consensus about the best way to model individual heterogeneity. This paper presents four approaches to modelling heterogeneity that are increasingly used in the literature. Latent class, mixed logit, scaled multinational logit and generalised mixed logit (GMXL) models are estimated using case study data for catchment environmental management in Australia. A GMXL model that accounts for preference and scale heterogeneity performs best. I evaluate the impacts of models on welfare estimates and discuss the merits of each modelling approach.
    Keywords: Choice Modelling, Econometrics, Random Parameters, Scale Heterogeneity, Unobserved Preference Heterogeneity, Environmental Economics and Policy, Research and Development/Tech Change/Emerging Technologies, Research Methods/ Statistical Methods,
    Date: 2013–02
  25. By: Ambrey, Christopher L.; Chan, Andrew Yiu-Chung; Fleming, Christopher M.
    Abstract: Making use of data from the Household, Income and Labour Dynamics in Australia (HILDA) survey coupled with air pollution data generated by The Air Pollution Model (TAPM), this paper employs the life satisfaction approach to estimate the cost of air pollution from human activities in South East Queensland. This paper offers at least three improvements over much of the existing literature: (1) within- (as opposed to cross-) country variations in air pollution are considered; (2) very high resolution air pollution data is employed; and (3) weather variables are included as controls within the life satisfaction function. A strong negative relationship is found between ambient concentrations of PM10 and life satisfaction, yielding a substantial willingness-to-pay for pollution reduction.
    Keywords: Air Pollution, Happiness, Household, Income and Labour Dynamics in Australia (HILDA), Geographic Information Systems (GIS), Life Satisfaction, Consumer/Household Economics, Environmental Economics and Policy, International Relations/Trade, Labor and Human Capital,
    Date: 2013–02
  26. By: Ingmar Schumacher (IPAG Business School); Benteng Zou (CREA, Université du Luxembourg)
    Abstract: In this article we study the implication of thresholds in preferences. To model this we extend the basic model of John and Pecchenino (1994) by allowing the current level of environmental quality to have a discrete impact on how an agent trades off future consumption and environmental quality. In other words, we endogenize the semi-elasticity of utility based on a step function. We motivate the existence of the threshold based on research from political science, from arguments based on regulation and standards, cultural economics as well as ecological economics. Our results are that the location of the threshold determines both the potential steady states as well as the dynamics. For low (high) thresholds, environmental quality converges to a low (high) steady state. For intermediate levels it converges to a stable p-cycle, with environmental quality being asymptotically bounded below and above by the low and high steady state. We discuss implications for intergenerational equity and policy making. As policy implications we study shifts in the threshold. Our results are that, in case it is costless to shift the threshold, it is always worthwhile to do so. If it is costly to change the threshold, then it is worthwhile to change the threshold if the threshold originally was sufficiently low. Lump-sum taxes may lead to a development trap and should be avoided if there are uncertainties about the threshold or the effectiveness of the policy.
    Keywords: thresholds, endogenous preferences, environmental quality, policy intervention
    JEL: Q28 Q56
    Date: 2013–06
  27. By: Batstone, Chris; Moores, Jonathan; Baines, James; Harper, Sharleen
    Abstract: Much contemporary socio-economic environmental policy evaluation is undertaken using decision utility based approaches such as choice modelling and contingent valuation. In this paper we describe an investigation into the use of the contrasting “experienced utility” concept to assess changes in environmental quality. The research context is the development of a spatial decision support system that discriminates between catchment development options in terms of their effects on the receiving water bodies of urban storm water. We report the outcomes of the application of an expert elicitation process from the risk assessment literature to the trial of a visual analogue method designed to elicit experienced utility scores from consultation workshops to assess the effects of multi-attribute changes to ecosystem services in urban estuaries.
    Keywords: Ecosystem services, experienced utility, expert elicitation, Community/Rural/Urban Development, Environmental Economics and Policy, International Development,
    Date: 2013–02
  28. By: Partha Sen (Department of Economics, Delhi School of Economics, Delhi, India)
    Abstract: The effects of a unilateral cut in emissions (e.g. by Annexure 1 countries in Kyoto) are analyzed in a dynamic two--country two--commodity model. If the fossil fuel is priced at marginal cost, a unilateral cut reduces total emissions (the carbon leakage is less than one hundred percent). But if the fuel is priced above marginal cost then a “green paradox” appears, i.e. the price of the fuel will fall until its use (over time) exhausts the entire stock. Here a unilateral policy is self-defeating and it is necessary to get binding commitments on fossil fuel use from all the countries. The production and trade implications for the participant and non-participant countries are analyzed.
    Date: 2013–07
  29. By: Ubilava, David
    Abstract: Global climate anomalies affect world economies and primary commodity prices. One of the more pronounced climate anomalies is El Niño Southern Oscillation (ENSO). In this study I examine the relationship between ENSO and world commodity prices using monthly time series of the sea-surface temperature anomalies in the Nino 3.4 region, and real prices of thirty primary agricultural commodities. I apply smooth transition auoregressive (STAR) modelling techniques to assess causal inferences that could potentially be camouflaged in the linear setting. I illustrate dynamics of ENSO and commodity price behavior using generalized impulse-response functions.
    Keywords: El Niño Southern Oscillation, Primary Commodity Prices, Smooth Transition Autoregression, Environmental Economics and Policy, Research and Development/Tech Change/Emerging Technologies, Research Methods/ Statistical Methods,
    Date: 2013–02
  30. By: Iwamoto, Hiroyuki
    Abstract: The purpose of this study is to examine the potential of food waste reduction through the green purchasing in Japanese consumers’ tofu purchasing decisions. Tofu is indispensable ingredient in Japanese cooking. But, huge amounts of food waste are produced during the paper production process. The Choice Modeling (Random Parameter Logit Model) is used in order to quantify the welfare change associated with the change in the level of local origin label, food recycling label, freshness of tofu, and price attribute for the sample of Japanese consumers in August 2012. The consumer has a positive perception of local origin label, food recycling label, freshness of tofu. The choice probability of food recycling labeled tofu is estimated at approximately 70%. The results suggest that green purchasing holds potential for food waste reduction in tofu manufacturing sector
    Keywords: choice experiment, food recycling, green purchase, Consumer/Household Economics, Environmental Economics and Policy, Food Consumption/Nutrition/Food Safety,
    Date: 2013–02
  31. By: Marshall, Graham R.
    Abstract: Adaptations in environmental management often involve complex problems of collective action. Institutions introduced to reduce the transaction costs of solving these problems often come at considerable cost. An Institutional Cost Effectiveness Analysis Framework (ICEAF) developed to provide a comprehensive and logical structure for economic evaluation of path dependent institutional choices in this domain, and a procedure for boundedly rational application of the framework, are proposed and illustrated in this article – including for the choice between water buy- back and infrastructure subsidy programs for recovering the ‘environmental water’ required to sustain the ecosystems of the Murray-Darling Basin. A research strategy developed to strengthen the knowledge base for applying this procedure is also proposed.
    Keywords: Demand and Price Analysis, Environmental Economics and Policy, Research and Development/Tech Change/Emerging Technologies, Research Methods/ Statistical Methods,
    Date: 2013–02
  32. By: Hertzler, Greg; Sanderson, Todd; Capon, Tim; Hayman, Peter; Kingwell, Ross
    Abstract: Australian crop and livestock farmers face uncertain climate change and variability and a challenge for adaptation decisions. These decisions can be (1) adjustments to practices and technologies, (2) changes to production systems, or (3) transformation of industries, for example, by relocation to new geographical areas. Adjustments to existing practices are easy to make, relative to changes to production systems or transformations at the industry level. Transformations require new investments and infrastructure and can leave assets stranded. These transformations can be partially or wholly irreversible and hysteresis effects can make switching difficult and mistakes costly to reverse. Real Options offers a framework to structure thinking and analysis of these difficult choices. This paper generalises and extends the principles of real options to capture the expected time until transformative thresholds are crossed. An application to South Australian wheat dominant agriculture is explored.
    Keywords: Australian agriculture, climate change, real options, Agricultural and Food Policy, Environmental Economics and Policy, International Relations/Trade,
    Date: 2013–02
  33. By: Timmer, C. Peter
    Abstract: The early drafts of Food Policy Analysis were stimulated by the attention to high food prices following the world food crisis in 1973-74, and the fears of a repeat in 1979-80. But by the fourth full draft, in 1982, it became apparent that surpluses were returning to world food markets. A volume predicated on a world running out of food would have been out of date before the ink was dry, and a full-scale revamping of the analytical messages was needed. After a nearly complete re-write, the new theme, which has stood the test of thirty years of market fluctuations, was the need for flexibility to cope with market instability. That message is even more relevant now, as we learn to cope with a new source of instability—climate change. Such flexibility is not a natural feature of domestic policy making, in the food sector or elsewhere, and providing the analytical tools for understanding how to create flexible responses turned out to be a real challenge. The task in this paper is to ask specifically how climate change would alter the basic message of Food Policy Analysis. Virtually all of the analysis was focused on national policies and domestic markets, an approach that seems problematical for preventing or mitigating climate change, but entirely appropriate for designing adaptation strategies. Climate change is imposing itself as a reality via the increased probability of extreme weather events in general, but also on both global and localized food security outcomes in particular. The ecosystem services provided by the climate are essential for all agricultural production. The most important effects of climate change on agriculture are likely to include a net global loss of agricultural land, changing crop suitability, an increase in the frequency of natural disasters, and greater temporal and geographic variance in production. It will also have negative effects on other areas of agriculture broadly interpreted--reducing the carrying capacity of many rangelands and posing threats to fisheries and aquaculture production systems. Climate change is expected to have highly variable effects on different regions; tropical and equatorial regions will bear the heaviest burdens, with some gains in yields and land availability in temperate regions. Since rural poverty is concentrated in tropical and, in South Asia, coastal areas, climate change is expected to have a disproportionate effect on the already vulnerable. The challenge is to design, analyze and implement in-country “climate-smart agriculture” adaptation projects and programs, which are now part of the food policy agenda, as well as improve the openness to trade in agricultural commodities to even out geographical instability. Designing appropriate policies for bio-fuels also needs to be on the analytical agenda.
    Keywords: Agricultural and Food Policy, Environmental Economics and Policy, Food Consumption/Nutrition/Food Safety,
    Date: 2013–02
  34. By: Edwards, Brooke; Sluggett, Robert; East, Miriam
    Abstract: To achieve water quality targets, management practice change in the sugar cane industry has been a large focus for natural resource management initiatives such as Reef Plan and Reef Rescue. Considerable public funds have been targeted at landholders to change on-ground management practices. However, the economic implications for landholders are not well understood. To further inform future policy development of the upcoming Reef Water Quality Protection Plan 3 and Reef Rescue 2, the economic costs and benefits to landholders are required. This research used a case study approach to consider the economic implications of improved soil management through an extended fallow period in the Mackay-Whitsunday region. The results demonstrate the complexity of creating effective policy design for adoption of improved management practices for water quality in a semi perennial farming system.
    Keywords: Water quality, sugar cane, Mackay Whitsunday, extended fallow, Crop Production/Industries, Environmental Economics and Policy, Research and Development/Tech Change/Emerging Technologies, Resource /Energy Economics and Policy,
    Date: 2013–02
  35. By: Nedumaran, S.
    Abstract: This paper assesses the tradeoff between non-farm income and on-farm soil and water conservation investment by smallholder farmers in the semi-arid tropics of India using a dynamic bioeconomic model. This modeling approach allows understanding the complex interaction and feedback between household economic decision making and sustainability of natural resource base. A dynamic crop-livestock integrated bio-economic has been developed and calibrated for a Semi-Arid Tropics (SAT) watershed village in India where integrated watershed development program was implemented. The village level model is used to assess the impact of improved access to off-farm employment created by watershed development program on household welfare, land degradation and Soil and Water Conservation (SWC) labour used on-farm to reduce run-off and soil erosion. The simulation results revealed that improved non-farm employment opportunities in the village increases household welfare but reduces the households’ incentive to use labour for conservation leading to higher levels of soil erosion and rapid land degradation in the watershed. This indicates that returns to labour are higher in non-farm than on-farm employment opportunities in the village. This appears to be no win-win benefits from improving the access to non-farm income in SAT rainfed farming villages. Complementary policies are required to protect the natural resource base.
    Keywords: Land degradation, Soil and Water conservation, non-farm income, Bioeconomic Model, Environmental Economics and Policy, Farm Management, International Development, International Relations/Trade, Research and Development/Tech Change/Emerging Technologies,
    Date: 2013–02
  36. By: Lee, Peter; Cassells, Sue; Holland, John
    Abstract: National parks and protected areas form the basis of global conservation initiatives and provide a raft of benefits in the form of various consumptive and non-consumptive uses. However, it is extremely difficult to express these benefits in monetary terms. The lack of economic values for these protected areas often results in sub-optimal conservation outcomes. Non-market valuation techniques can be used to estimate monetary values for these key environmental assets. This research applied the choice modelling approach to assess the value of non-market goods and services associated with Abel Tasman National Park in New Zealand. A standard multinomial logit model was used to analyse visitor preferences and derive welfare measures. The results indicate park users were willing to pay an actual cash value for the ecological and recreational attributes of the park. These monetary values can be used to guide future development, inform resource allocation decisions and ensure adequate conservation financing.
    Keywords: Choice experiments, stated preference, willing to pay, Consumer/Household Economics, Environmental Economics and Policy, International Relations/Trade, Research and Development/Tech Change/Emerging Technologies,
    Date: 2013–02
  37. By: Greiner, Romy; Ballweg, Julie
    Abstract: This paper reports on the experimental design process and considerations of a discretecontinuous choice experiment conducted in collaboration with landholders in northern Australia. The purpose of the research is to inform the design of effective and efficient payments-for-ecosystem services schemes to safeguard north Australia’s biodiversity values by promoting the contractual provision of biodiversity conservation services by landholders, in particular pastoralists and graziers. The paper focusses in particular on the discrete choice experimental (DCE) aspects. The DCE is employed to estimate landholders’ preference heterogeneity for supplying ecosystem services, specifically their willingness to accept remuneration for the on-farm conservation of biodiversity, based on potential program attributes. The design of the choice experiment draws on best practice standards (Hoyos 2010), a recognition of the benefits of embedding design in a consultative process (Klojgaard et al. 2012) and recent advances in accounting for response certainty (Brouwer et al. 2010; Hensher et al. 2012). DCE design decisions relating to attribute selection, attribute levels, alternatives and choice tasks are explained based on literature, focus group discussions, expert interviews and an iterative process of efficient DCE design. Additional design aspects include (i) a set of supplementary questions after each choice set to measure respondents’ choice certainty and elicit decision heuristics; (ii) embedding of the experiment in a socio-economic-psychological questionnaire, and (iii) logistical design.
    Keywords: Choice experimental design, efficient design, iterative process, response certainty, willingness to accept, farmers, on-farm biodiversity conservation, Agricultural and Food Policy, Environmental Economics and Policy, Farm Management, Institutional and Behavioral Economics,
    Date: 2013–02
  38. By: Israel, Danilo C.; Lintag, Jeffrey H.
    Abstract: The main purpose of the study was to determine if the reforestation program of the Department of Environment and Natural Resources (DENR) over the years has been successful in attaining its stated objectives and in mitigating the adverse impacts of climate change on forest resources and the natural environment. The corollary goal was to develop recommendations to improve reforestation activities in light of the National Greening Program (NGP) of the current administration. The study used secondary data generated from institutional sources and primary data gathered through key informant interviews and focus group discussions conducted in some selected NGP sites in the Caraga region in Mindanao. In summary, the study found the following: a) At the national level, the reforestation program of the DENR has only partially attained its replanting targets; b) Also at the national level, it appears to have become relatively inefficient in the conduct of replanting activities over the years; and c) At the individual site level, it may have been effective to some degree in increasing incomes and livelihood opportunities, improving the natural resource and environmental situation, and achieving the other objectives of reforestation in many areas. Based on the findings, some recommendations for improvements particularly related to the implementation of the NGP were put forward by the study. In conclusion, the study asserts that other than the infusion of sufficient financial and manpower resources, a reforestation program would have a better chance of attaining its objectives if its implementers can sufficiently monitor activities and effectively implement changes in operations to address the problems encountered.
    Keywords: Philippines, zero-based budgeting, Department of Environment and Natural Resources, National Greening Program, Caraga Region, reforestation, reforestation programs, reforestation laws
    Date: 2013
  39. By: Nordblom, T.L.; Hume, I.H.; Finlayson, J.D.; Pannell, D.J.; Holland, J.
    Abstract: This study focuses on the problem of water use by new upstream commercial tree plantations where fully-committed water entitlements are already held and traded among downstream sectors (urban water, wetlands and agricultural industries). High tree product prices strongly incentivise expansion of upstream plantation areas, particularly if there is no accounting for the predictable extra interception and use of water by trees. Planters could benefit greatly at the expense of downstream water users. Plotting this in a public-private benefit framework (PPBF) suggests a policy of “flexible negative incentives” to limit expansion of new trees, rather than ‘across the board’ banning of new plantations. We explore the ‘flexible’ option and the current ‘no control’ option for a case-study area, the Macquarie River catchment in central- west NSW, Australia, using three scenario sets: (1) Policy setting — without or with the requirement for distributions of water use entitlements to be handled by extending the existing downstream market to new upstream plantations (the flexible negative incentive). (2) Expected tree-product values — four exogenous levels ($40, $50, $60 or $70/m3), provide positive incentives for establishing trees. (3) Water quality — FRESH or a hypothetical SALTY scenario where one of six up- stream watersheds seeps so much salt into the river that water for urban use is compromised when new plantations reduce fresh water yields from the other five. We estimate quantitative consequences of all 16 combinations of the above scenarios, and show how an extended water market can deliver “flexible incentives” for efficient water distributions in which all new upstream and old downstream users either benefit by trading or remain unaffected.
    Keywords: Water-catchment, Downstream-externality, Environmental-services, Policy, Interception, Murray-Darling Basin, Supply, Demand, Market, Urban-water, Irrigation, Wetlands, Biodiversity, Tree-plantations, Environmental-economic tradeoffs, Aggregation, Crop Production/Industries, Demand and Price Analysis, Resource /Energy Economics and Policy, Q0, Q57, Q58,
    Date: 2013–02
  40. By: KITANO Taiju
    Abstract: The US government criticized Japanese environmental policies, which promoted eco-friendly car (eco-car) purchases via measures such as tax exemptions and subsidies, as disguised forms of protection by arguing that the fuel economy standard for the subsidy qualification was designed to be more beneficial to domestic firms. This paper examines Japanese environmental policies from 2005-2009 to assess whether or not they were adequately formulated from an environmental perspective. The analysis compares the outcomes between the actual fuel economy standard for subsidy qualification introduced in Japan and an alternative standard suggested by the US government. Simulation results based on the structural econometric model of multi-product oligopolistic competition show that although both alternative and actual standards are comparable for the average fuel economy of new cars sold, the former is inefficient in improving the fuel economy because it requires much larger subsidies to achieve the same average fuel economy level as that of the latter.
    Date: 2013–06
  41. By: Yoshito Takasaki
    Abstract: To design effective policies for rainforest conservation in shifting cultivation systems, it is crucial to have a better understanding of shifting cultivatorsf decision making. This paper develops a unified dynamic farm model of shifting cultivation, addressing two lacunae in extant theoretical works: taking into account differences between primary and secondary forests and potential roles of on-farm soil conservation. The model unifies shifting cultivatorfs decisions about primary-forest clearing, forest fallowing, and onfarm soil conservation by incorporating new soils acquired from cleared primary/secondary forest land into on-farm soil dynamics. I examine how three distinct policies ? forest protection (e.g., protected areas), fallow management (e.g., improved fallow), and on-farm soil management (e.g., biochar in Amazonia) ? alter primary-forest clearing (deforestation) and fallow length. The analysis reveals that although all three policies reduce deforestation, only on-farm soil management leads to longer fallow, i.e., sustainable secondary fallow forest.
    Date: 2013–07
  42. By: Massimiliano Mazzanti; Davide Antonioli; Francesco Nicolli; Marianna Gilli
    Abstract: The paper investigates the extent to which the adoption of Information and Communication Technology (ICT) by firms affects the likelihood of adopting environmental innovations (EI). We also test empirically whether various types of ICT adoption and other innovation practices (R&D, techno-organizational change) are complementary inputs with respect to the introduction of specific environmental innovations. The analysis is based on two different data sources, which offer various views on ICT and EI relationships. The first draws upon the ICT and environmental innovations information contained in the EU Community Innovation Survey (CIS), the other on an original CIS like survey focusing on a large Italian industrial region, Emilia-Romagna. This survey contains information on the adoption of environmental innovations and some detailed information on ICT issues and other technological-organizational processes. We find that ICT adoption is robustly and positively correlated to EI in the EU. In addition, complementarity is characterizing the relationship between ICT and other innovation processes as a force behind EI, but it is not to be taken for granted. In fact, it appears a robust empirical fact with regard to general innovation capacity (R&D and ICT), though when we narrow down the focus to specific techno-organizational innovations, complementarity with ICT is rarely a pillar firm’s green strategies. Further research might focus on the complementarity between ICT and EI as an ‘asset’ promoting higher economic performances.
    Keywords: ICT; environmental innovations; complementarity; organizational change; CIS
    JEL: L60 O30 Q58
    Date: 2013–05–02
  43. By: Giulio Cainelli; Massimiliano Mazzanti; Alessio D'Amato
    Abstract: We present a joint theoretical-empirical investigation to assess the adoption by manufacturing firms of innovations aimed at increasing recycling and, consequently, reducing the use of material and waste in production processes. According to the recent emphasis on the 'external' factors stimulating innovation which often may be more important than the classic drivers, such as R&D, we address the role of local influences, such as policy environments and regional structural features. First, we analyse firms’ innovation adoption choices in a simplified technology adoption model augmented by discussions in the environmental innovation (EI) literature that rationalize the research hypotheses underlying empirical models. We frame our empirical analysis on an original integration of data from a firm survey (EU CIS2008 survey of manufacturing firms) and regional level waste related information obtained from Italian environmental agency waste reports. The EU CIS2008 was the first of these surveys to ask for information on EI adoption in the waste sector. Our econometric analysis shows that firms adopt EI on the basis of some relational factors, while drivers such as R&D have no impact. The evidence of our study supports the role of regional factors related to waste management and policy. For example, firms located in regions with better separated waste collection and waste tariff diffusion systems are more likely to adopt EI. Networking and agglomeration economies do not seem to have any effect.
    Keywords: waste and material reduction technology; innovation adoption; firm behaviour; waste policy; regional frameworks; agglomeration economies
    JEL: D22 Q53 Q55
    Date: 2013–06–21
  44. By: Roman Mendelevitch
    Abstract: Scenarios of future energy systems attribute an important role to Carbon Capture, Transport, and Storage (CCTS) in achieving emission reductions. Using captured CO2 for enhanced oil recovery (CO2-EOR) can improve the economics of the technology. This paper examines the potential for CO2-EOR in the North Sea region. UK oil fields are found to account for 47% of the estimated total additional recovery potential of 3739 Mbbl (1234 MtCO2 of storage potential). Danish and Norwegian fields add 28% and 25%, respectively. Based on a comprehensive dataset, the paper develops a unique techno-economic market equilibrium model of CO2 supply from emission sources and CO2 demand from CO2-EOR to assess implications for a future CCTS infrastructure. The demand for "fresh" CO2 for CO2-EOR operation is represented by an exponential storage cost function. In all scenarios of varying CO2 and crude oil price paths the assumed CO2-EOR potential is fully exploited. CO2-EOR does add value to CCTS operations but the potential is very limited and does not automatically induce long term CCTS activity. If CO2 prices stay low, little further use of CCTS can be expected after 2035.
    Keywords: CO2-EOR, CCTS, complementarity modeling, CO2 transport
    JEL: C61 L71 O33
    Date: 2013
  45. By: Claire Bergaentzlé (PACTE - Politiques publiques, ACtion politique, TErritoires - Institut d'Études Politiques [IEP] - Grenoble - CNRS : UMR5194 - Université Pierre-Mendès-France - Grenoble II - Université Joseph Fourier - Grenoble I); Cédric Clastres (PACTE - Politiques publiques, ACtion politique, TErritoires - Institut d'Études Politiques [IEP] - Grenoble - CNRS : UMR5194 - Université Pierre-Mendès-France - Grenoble II - Université Joseph Fourier - Grenoble I)
    Abstract: Smart Grid technology appears necessary to succeed in activating the demand through demand side management (DSM) programs. This would in turn improve energy efficiency and achieve environmental targets through controlled consumption. The many pilot projects led worldwide involving smart grids technology, brought quantitative evaluations of DSM measures on electricity load. Efficient DSM instruments must be fine tuned to respond to very specific issues arising from the generation mix, the integration of intermittent energies or the level of outage risks faced during peak period. Efficient DSM strategies are illustrated through a model involving five countries that carry these different features and under the assumptions of isolated and fully interconnected markets. This paper aims at bringing recommendations regarding the instruments that should be implemented to maximize the benefits of smart grids technology and demand response. Finally, it tends to emphasis the issue of homogenized energy efficiency policies, critical in the building of internal energy markets such as the one the European Union is envisioning.
    Keywords: Demand-Side Management ; Dynamic Pricing ; Generation Mix ; Isolated Market ; Integrated market
    Date: 2013
  46. By: Cook, David C.; Fraser, Rob W.; Weinert, Andrew S.
    Abstract: The principal chemicals used by Western Australia’s horticultural industries for field control and post-harvest disinfestation procedures for Mediterranean fruit fly are soon to be withdrawn from use due to public health concerns. When this occurs, the necessary switch to alternative control methods such as bait sprays and intensive fruit fly trapping will involve additional producer costs. Given these costs, this paper evaluates the option of eradicating Mediterranean fruit fly from the State and discusses possible cost sharing arrangements between government and industry that could be reached for mutual benefit.
    Keywords: Biosecurity, Mediterranean fruit fly, pest management, Crop Production/Industries, Environmental Economics and Policy, International Relations/Trade,
    Date: 2013–02
  47. By: Czajkowski, Mikołaj; Hanley, Nick; LaRiviere, Jacob
    Abstract: This paper develops a model of demand estimation in which consumers learn about their true preferences through consumption experiences. We develop a theoretical model of Bayesian updating, perform comparative statics over the model, and show how the theoretical model can be consistently incorporated into a reduced form econometric model. We then estimate the model using data collected for two quasi-public goods. We find that the predictions of the theoretical exercise that additional experience with a good will make consumers more certain over their preferences in both mean and variance are supported in each case.
    Keywords: Bayesian, demand estimation, stated preference, generalized multinomial logit, scale, scale variance, Environmental Economics and Policy, Institutional and Behavioral Economics, Research and Development/Tech Change/Emerging Technologies, C51, D83, Q51, H43,
    Date: 2013–02
  48. By: Mierau, Jochen O. (Groningen University)
    Abstract: What determines the activity and lethality of militant groups? To answer this question, a two-step count method disentangles activity and lethality in terms of ideology, capacity, and environmental factors. A first step assesses the determinants of group activity, measured by the number of incidents in which a group was involved. The second step considers the number of fatalities, conditional on the number of incidents. Similar factors drive militant group activity and lethality, but some links are stronger than others. Specifically, ideological factors are particularly strong determinants of lethality; capacity and environmental factors matter more for activity.
    Date: 2013
  49. By: Juan Antonio Duro Moreno (Departament d’Economia and CREIP, Universitat Rovira i Virgili); Jordi Teixidó-Figueras (Departament d’Economia and CREIP, Universitat Rovira i Virgili); Emilio Padilla Rosa (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona)
    Abstract: This paper analyses the international inequalities in CO2 emissions intensity for the period 1971- 2009 and assesses explanatory factors. Multiplicative, group and additive methodologies of inequality decomposition are employed. The first allows us to clarify the separated role of the carbonisation index and the energy intensity in the pattern observed for inequalities in CO2 intensities; the second allows us to understand the role of regional groups; and the third allows us to investigate the role of different fossil energy sources (coal, oil and gas). The results show that, first, the reduction in global emissions intensity has coincided with a significant reduction in international inequality. Second, the bulk of this inequality and its reduction are attributed to differences between the groups of countries considered. Third, coal is the main energy source explaining these inequalities, although the growth in the relative contribution of gas is also remarkable. Fourth, the bulk of inequalities between countries and its decline are explained by differences in energy intensities, although there are significant differences in the patterns demonstrated by different groups of countries.
    Keywords: CO2 international distribution, inequality decomposition, CO2 emissions intensity
    JEL: D39 Q43 Q56
    Date: 2013–06
  50. By: Windle, Jill; Rolfe, John
    Abstract: Assessing the value of ecosystem services in a particular area helps provide information about the economic benefits these services provide to the community. In many situations, to avoid the full cost of primary data collection, value estimates may be applied from secondary sources in a process known as benefit transfer. However, in many countries, including Australia, the stock of economic value estimates for ecosystem services is limited and this restricts the application of benefit transfer. In this paper, the non-market values of three ecosystems (native vegetation, waterways, and wetlands) in a coastal peri-urban town are assessed using benefit transfer. Ecosystems in a peri-urban environment are generally fragmented and in a degraded condition, but can have very high values within the residential urban area. Three main limiting factors are identified. First, there is a general paucity of relevant source study estimates. Second, there is a need for scale adjustment factors so that source study estimates which are often assessed at a catchment or regional level can be adjusted to a small local council jurisdiction. Third, there is a need for some level of scope adjustment to account for the very high values of very small patch sizes, with low ecological value, within an urban area.
    Keywords: benefit transfer, peri-urban valuation, scope, scale, native vegetation, wetlands, waterways, Land Economics/Use, Research and Development/Tech Change/Emerging Technologies, Resource /Energy Economics and Policy,
    Date: 2013–02
  51. By: Alexandros Maziotis (Fondazione Eni Enrico Mattei and Euro-Mediterranean Center for Climate Change, CIP Division, Isola of San Giorgio Maggiore, Venice, Italy); Elisa Calliari (Fondazione Eni Enrico Mattei and Euro-Mediterranean Center For Climate Change, CIP Division, Isola of San Giorgio Maggiore, Venice, Italy); Jaroslav Mysiak (Fondazione Eni Enrico Mattei and Euro-Mediterranean Center For Climate Change, CIP Division, Isola of San Giorgio Maggiore, Venice, Italy)
    Abstract: This paper discusses a framework for analyzing robust institutions for water markets drawn on the new institutional economics school of thoughts which is based on Williamson, North, Coase and Ostrom theories on transaction cost economics, property rights and collective actions. Based on these theories, we review the evolution and development of water reforms and markets in countries such as Australia, USA (California and Colorado), Chile and in Spain. Based on the lessons learned from the Spanish and international experience on water markets, a list of robust recommendations for the improvement of water markets in Spain is proposed. These include among others, not only the definition of secure water rights, through the registration of rights or recognition of environment as a legitimate user, but also the monitoring of water trading activities, including the collection of information for prices and quantities or cost-benefit analysis for quantifying benefits and externalities. Finally, based on Sharma’s approach (2012) a new robust water governance model for Spain is proposed in which the highest priority is given to the role of legal and political institutions and second priority to environmental, economic and social needs. We hope that the framework presented in this paper will function as a tool for researchers and policy makers in Spain and other European countries to understand how water markets can be further developed to be economically and environmentally efficient, and socially accepted.
    Keywords: New Institutional Economics, Robust Design Principles, Water Governance, Institutions, Water Markets
    JEL: B52 D23 Q25
    Date: 2013–06
  52. By: Randall S. Jones; Myungkyoo Kim
    Abstract: The 2011 disaster and nuclear problems opened the door to a new energy policy, as they raised fundamental questions about the electricity system’s ability to prevent and respond to accidents. In particular, the system has had difficulty coping with the shortages caused by the accident and the suspension of operations of nuclear power plants. Addressing these problems requires creating a more competitive electricity sector by reducing the dominance of the ten regional monopolies through ownership unbundling of generation and transmission and by expanding the wholesale market. It is also important to increase interconnection capacity, while introducing real-time pricing. The reduced role of nuclear power following the Fukushima accident makes it necessary to accelerate the expansion of renewable energy, which requires setting a sufficiently high and consistent price for carbon. Finally, the government should ensure the independence of the new Nuclear Regulatory Agency and create an independent regulator for the electricity sector to promote competition. This Working Paper relates to the 2013 OECD Economic Survey of Japan (<P>Restructurer le secteur électrique et favoriser la croissance verte au Japon<BR>La catastrophe naturelle et nucléaire de 2011, parce qu’elle a posé des questions fondamentales concernant la capacité du système électrique d’éviter et de réagir à des accidents, a ouvert la voie à l’élaboration d’une nouvelle politique énergétique. Ce système notamment n’a pu sans mal gérer les pénuries d’électricité provoquées par l’accident et par la suspension de l’exploitation des centrales nucléaires. S’attaquer à ces faiblesses nécessite la création d’un secteur de l’électricité plus concurrentiel, en atténuant la position dominante des dix monopoles régionaux ; pour cela, il faut dissocier la production du transport et dynamiser le marché de gros. Également, il est important d’augmenter les capacités d’interconnexion, tout en introduisant la tarification en temps réel. L’énergie nucléaire ayant un rôle moins important depuis l’accident de Fukushima, le Japon doit accélérer le développement des énergies renouvelables, ce qui impose de fixer un prix suffisamment élevé et cohérent pour le carbone. Enfin, le gouvernement doit assurer l’indépendance de la nouvelle Autorité de sûreté nucléaire et créer une autorité de régulation indépendante pour le secteur de l’électricité afin de stimuler la concurrence. Ce Document de travail a trait à l’Étude économique de l’OCDE du Japon, 2013 (
    Keywords: renewable energy, energy efficiency, Japanese economy, emissions trading system, nuclear power, electricity sector, electricity shortages, ownership unbundling, wholesale electricity market, interconnection, real-time price, feed-in-tariffs, energy conservation, regional electricity monopolies, économie japonaise, système d’échange de droits d’émissions, énergies renouvelables, efficacité énergétique, énergies nucléaire, secteur de l’électricité, marché de l’électricité de gros, interconnexion, tarification en temps réel, tarifs d’achat garantis, monopoles régionaux de l’électricité
    JEL: Q40 Q41 Q42 Q48
    Date: 2013–06–28
  53. By: Daigneault, A.; Brown, P.
    Abstract: Invasive species pose an enormous threat in the Pacific: not only do they strongly affect biodiversity, but they also potentially affect the economic, social, and cultural wellbeing of Pacific peoples. Invasive species can potentially be managed and their impacts can potentially be avoided, eliminated, or reduced. However, neither the costs nor the numerous benefits of management are well understood in the Pacific. Thus, we undertook cost-benefit analyses (CBAs) of managing five species that are well established on Viti Levu, Fiji: spathodea campanulata (African tulip tree), herpestus javanicus (small Asian mongoose), papuana uninodis (taro beetle), pycnonotus cafer (red-vented bulbul), and merremia peltata (merremia vine). These CBAs are informed by extensive survey data that record the incidence, management, and impacts of the five species in Fiji. We find that the most cost-effective management option varies by species, precluding a universal solution. Nevertheless, the benefits of management often exceed the costs of management by a wide margin, arguing for a more concerted effort to control the spread of invasive species in the Pacific.
    Keywords: invasive species, cost-benefit analysis, non-market valuation, Crop Production/Industries, Demand and Price Analysis, Land Economics/Use,
    Date: 2013–02
  54. By: Kamanda, Josey; Birner, Regina; Bantilan, Cynthia
    Abstract: International agricultural research centres (IARCs) have a mission to reduce poverty, improve food security, human health and nutrition, and ensure sustainable management of natural resources. Their role in the research for development (R4D) continuum has long been a subject of discussion, often with emphasis that they should conduct research that produces international public goods (IPGs). However, national agricultural research systems (NARS) in many developing countries have insufficient capacity to translate these products into welfare benefits. This coupled with higher dependence on bilateral donors that exert pressure to show impacts have increasingly driven IARCs to engage in participatory downstream work. This shift has been criticized for placing emphasis on local development agendas at the expense of IPG delivery. This paper uses insights from the literature to discuss the rationale for setting up IARCs under the consultative group on international agricultural research (CGIAR), their governance and transformation over the years and the critical question of how the centres should position themselves. A conceptual framework based on transaction cost economics and fiscal federalism literature is used to complement discussions on their comparative advantage from a normative point of view. While low transaction intensity, asset specificity, economies of scale and potential for spillovers are important attributes of transactions that increase the comparative advantage of IARCs over other actors in the R4D spectrum, contextual factors in different locations may drive centres to deviate from conducting activities that they are best at.
    Keywords: Agricultural innovation, comparative advantage, research spillovers, transaction costs, CGIAR, Agricultural and Food Policy, Demand and Price Analysis, Environmental Economics and Policy, Research and Development/Tech Change/Emerging Technologies,
    Date: 2013–02
  55. By: Ambec, S.; Garapin, A.; Muller, L.; Reynaud, A.; Sebi, C.
    Abstract: In a laboratory experiment we test the three regulations imposed on a common-pool resource game with heterougeneous users: an access fee and subsidy scheme, transferable quotas and non transferable quotas? We calibrate the game so that all regulations improve users' profits compared to free-access extraction. We compare the regulations according to five criteria: resource preservation, individual profits, profit difference, Pareto-improvement from free-access and sorting of the most efficient users. One of the main findings is that, even though it performs better in sorting out the most efficient subjects, the fee and subsidy scheme is not the more profitable than tradable quotas.
    JEL: C91 Q28 Q38 Q58
    Date: 2013
  56. By: Charyulu, D.Kumara; Bantilan, MCS; Rajalaxmi, A
    Abstract: Sorghum is the third cereal crop after rice and wheat in India, mostly grown under marginal and stress-prone areas of Semi-Arid Tropics (SAT). NARS, ICRISAT and private seed companies are the major stakeholders working for sorghum crop improvement in the last five decades (1960-2012). Altogether more than 256 improved cultivars have been notified and made available to farmers during the same time. The current knowledge about spread and impact of sorghum improved crop varieties in the country is incomplete. The present study made an attempt to address these issues with help of primary as well as secondary sources of information. The analysis has concluded that nearly 80 per cent of total sorghum area is under improved cultivars which helped to increase the country productivity levels by 85 per cent during 1960 and 2010. This aptly proves that role of sorghum improved cultivars in sustaining the higher yields.
    Keywords: Development of improved cultivars, diffusion of sorghum improved cultivars in India, Impact on yield Growth and variability, Crop Production/Industries, Environmental Economics and Policy,
    Date: 2013–02
  57. By: Doshi, Amar; Pascoe, Sean
    Abstract: In mid-2010, an impact assessment was undertaken to ascertain the non-market value of coral reefs to scuba divers in Thailand, Malaysia and Indonesia. A travel cost method was employed and it was found that divers had a consumer surplus of about US$590 per dive. However, given the sample consisted of a much larger proportion of international visitors (84%), an analysis was undertaken to ascertain the effects of the sample heterogeneity on the economic value estimates. The results indicated that the pooled results were biased towards the international sub-sample. Domestic visitors had a much lower consumer surplus of about US$130 per dive. In addition, the split-sampling suggested that the assumption of endogenous stratification using count data models was not appropriate for the international sub-sample. Applying the split-sampling based to the three separate countries illustrated further large disparities in consumer surplus, with Thailand the highest at US1200 per dive and Malaysia the lowest at US$260 per dive. This proves consequential in determining the appropriate user fee structure given the different resulting effects on returning divers based on their origins and diving destinations.
    Keywords: Travel cost method, coral diving, sample heterogeneity, Demand and Price Analysis, Environmental Economics and Policy, Research and Development/Tech Change/Emerging Technologies,
    Date: 2013–02
  58. By: Diego Comin; Johannes Rode
    Abstract: We estimate the effect of the diffusion of photovoltaic (PV) systems on the fraction of votes obtained by the German Green Party. The logistic diffusion of PV systems offers a new identification strategy. We take first differences and instrument adoption rates (i.e. the first difference in the diffusion level) by lagged diffusion levels. The existing rationales for non-linearities in diffusion, and ubiquity of logistic curves ensure that our instrument is orthogonal to variables that directly affect voting patterns. We find that the diffusion of domestic PV systems caused 25 percent of the increment in green votes between 1998 and 2009.
    JEL: D72 O33
    Date: 2013–07
  59. By: Kathy Baylis; Yazhen Gong; Shun Wang
    Abstract: Social capital can facilitate community governance, but not all social capital is alike. We distinguish bonding social capital (within a village) from bridging social capital (between villages), and we compare their effects on the management of a common pool resource. We develop a theoretical model and show that bonding social capital can improve common pool resource management, while the effect of bridging social capital is mixed. We test these findings using primary data from Yunnan, China on social capital and firewood collection on communal lands. We find that bonding social capital decreases the consumption of the common pool resource, and bridging social capital erodes the effect of bonding. Bridging social capital also decreases the use of the common pool resource by villagers who are near subsistence levels of consumption. Our results are robust to alternative measures of social capital and to treating social capital as endogenous.
    JEL: O13 Q2 Q23 Q56
    Date: 2013–07
  60. By: Cathrine Ulla Jensen; Toke Emil Panduro (Department of Food and Resource Economics, University of Copenhagen); Thomas Hedemark Lundhede (Department of Food and Resource Economics, University of Copenhagen)
    Abstract: In this article we quantify the marginal external effects of nearby land based wind turbines on property prices capitalized through traded residential properties located within 2,500 meters or less. We succeed in separating the effect of noise and visual pollution from wind turbines. This was achieved by using a dataset covering 21 municipalities and consisting of 12,640 traded residential properties sold in the period 2000-2011. We model the hedonic price function in two steps. First we detrend data across municipalities using a pooled cross sectional model which allows for different price trends across municipalities. Second we control for spatial autocorrelation by using explicit spatial models. Properties affected by noise and visual pollution from wind turbines are identified using Geographical Information Systems. Our results show that wind turbines have a significant negative impact on the price schedule of neighboring residential properties. The visual pollution accounts for 3.15% of the residential sales price. The price premium declines with distance by about 0.242% of the sales price for every 100 meters. The effect of noise depends on the noise level emitted and ranges from 3% to 7% of the sale price for residential properties.
    Keywords: Valuation, wind turbines, spatial autocorrelation, hedonic house price modeling
    Date: 2013–07
  61. By: Llanto, Gilberto M.; Rosellon, Maureen Ane D.
    Abstract: The slow progress of the Cadastral Survey Program in the Philippines has been associated with implementation issues that have affected the effectiveness and efficiency of the program. A review of the processes, procedures, and existing institutional set-up in the conduct of cadastral surveys helped identify factors behind the slow progress and delays in implementation. These factors include the tedious procurement process and procedures; slow verification of survey reports/returns; peace and order situation in areas subject to cadastral survey; lack of cooperation from the local government units; and inaccurate and dated land database. The paper assessed the accomplishments of the cadastral survey program and estimated the funding requirements needed to finish the remaining surveys based on data and information made available by the Department of Environment and Natural Resources/Land Management Bureau and other government agencies. Based on the findings, recommendations on how the program may be improved were presented.
    Keywords: land management, Philippines, cadastral survey, boundary agreement process, land parcel, public land subdivision survey, land titling
    Date: 2013

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