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on Environmental Economics |
| By: | Carlo Orecchia; Ramiro Parrado (Fondazione Eni Enrico Mattei (FEEM), and Euro-Mediterranean Center on Climate Change (CMCC), Italy) |
| Abstract: | Although CO2 emissions stand for most of greenhouse gas (GHG) emissions, the contribution of mitigation efforts based on non-CO2 emissions is still a field that needs to be explored more thoroughly. Extending abatement opportunities to non-CO2 could reduce overall mitigation costs but it could also exert a negative pressure on agricultural output. This paper offers insights about the first effect while provides a preliminary discussion for the second. We investigate the role of non-CO2 GHGs in climate change mitigation in Europe using a computable general equilibrium (CGE) model. We develop a specific modelling framework extending the model with non-CO2 GHGs as an additional mitigation alternative. These modifications allow us to analyse the implications for the European Union (EU) of including non-CO2 GHG emissions in its cap and trade system. We distinguish two targets on all GHG emissions for 2020, a reduction by 20% and 30% with respect to 1990 levels. Within each reduction cap, we consider two mitigation opportunities by means of a carbon tax levied on: 1) CO2 emissions only, and 2) All GHGs emissions (both CO2 and non-CO2 GHG). Results show that a multi-gas mitigation policy would slightly decrease policy costs compared to the CO2 only alternative. |
| Keywords: | CGE, Greenhouse gas emissions, Cap-and-trade system, Agriculture, Non-CO2 emissions, European Union, Effort Sharing Decision |
| JEL: | Q5 Q58 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2013.100&r=env |
| By: | ZhongXiang Zhang (University Distinguished Professor and Chairman, School of Economics, Fudan University, Shanghai, China) |
| Abstract: | China’s rampant environmental pollution problems and rising greenhouse gas emissions and the resulting climate change are undermining its long-term economic growth. China, from its own perspective cannot afford to and, from an international perspective, is not meant to continue on the conventional path of encouraging economic growth at the expense of the environment. Instead, concerns about a range of environmental stresses from burning fossil fuels, energy security as a result of steeply rising oil imports and international pressure on it to exhibit greater ambition in fighting global climate change have sparked China’s determination to improve energy efficiency and cut pollutants, and to increase the use of clean energy in order to help its transition to a low-carbon economy. This chapter focuses on China’s efforts towards energy conservation, nuclear power and the use of renewable energy. The chapter examines a number of market-based instruments, economic and industrial policies and measures targeted for energy saving, pollution cutting, energy greening. To actually achieve the desired outcomes, however, requires strict implementation and coordination of these policies and measures. The chapter discusses a variety of implementation/compliance/reliability issues. The chapter ends with some concluding remarks and recommendations. |
| Keywords: | Energy Saving, Renewable Energy, Power Generation, Nuclear Power, CCS, Market-Based Instruments, Economic and Industrial Policies, Carbon Intensity, Resource Taxes; Implementation, Compliance and Reliability, Financial Institutions |
| JEL: | Q42 Q43 Q48 Q52 Q54 Q55 Q56 Q58 R13 R15 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2013.92&r=env |
| By: | Marianna Gilli (University of Ferrara, Italy); Susanna Mancinelli (University of Ferrara, Italy); Massimiliano Mazzanti (University of Ferrara & Ceris Cnr Milan, Italy) |
| Abstract: | Innovation is a key element behind the achievement of desired environmental and economic performances. Regarding CO2, mitigation strategies would require cuts in emissions of around 80-90% with respect to 1990. We investigate whether complementarity, namely integration, between the adoption of environmental innovation measures and other technological and organizational innovations is a factor that has supported reduction in CO2 emissions per value added, that is environmental productivity. We merge new EU CIS and WIOD meso level data to assess the innovation effects on sector CO2 performances at a wide EU level. We find that jointly adopting different innovations is not a significant factor to increase environmental productivity, neither for the entire economy nor for manufacturing or narrower ETS sectors. The only case where a complementarity arises is for Northern EU manufacturing sectors that integrate eco innovations with product and process innovations to support environmental productivity. We believe that the lack of integrated innovation adoption behind environmental productivity performance is a signal of the current weaknesses economies face in tackling climate change and green economy challenges. Incremental rather than more radical strategies have predominated so far; this is probably insufficient when we look at long-term economic and environmental goals. |
| Keywords: | Complementarity, Innovation, Climate Change, Sector Performance |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2013.88&r=env |
| By: | Auci, Sabrina; Vignani, Donatella |
| Abstract: | In our paper, we investigate the relation between per capita Domestic Material Consumption indicator (DMC) assumed as a potential environmental degradation indicator and per capita income. DMC is a physical measure developed by official statistics in recent years and derived from a Satellite Accounts System to evaluate the material dimension of human development and the environmental consequences of economic growth. While the literature has focused its attention on pollution and its measures, we consider as environmental degradation the impact of production and consumption on natural resources extracted from the global environment for the functioning of social-economic systems. In particular, we want to estimate if there exists a relationship similar to the Environmental Kuznets Curve (EKC) between per capita DMC Indicator and per capita GDP controlling for final Consumption expenditure, Openness index trade and national Research and Development expenditure by using a cross–European panel of countries over the period 2000-2010. Our results support the EKC hypothesis. However, the value of income at the turning point is high and probably there is a delink between DMC indicator and GDP as in the case of CO2 emissions and income literature. |
| Keywords: | Natural Resource Use, Environmental degradation, Environmental Kuznets Curve, Domestic Material Consumption Indicator, Economy-wide Material Flows Accounts (Environmental Satellite Accounting), GDP, cross-European panel of countries |
| JEL: | Q53 Q56 |
| Date: | 2013–07–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:52882&r=env |
| By: | Christoph Böhringer (Carl von Ossietzky Universität Oldenburg, Institut für Volkswirtschaftslehre & ZenTra); Jared C. Carbone (University of Calgary and Resources for the Future, Department of Economics); Thomas F. Rutherford (University of Wisconsin, Madison) |
| Abstract: | Embodied carbon tariffs tax the direct and indirect carbon emissions embodied in trade — an idea popularized by countries seeking to extend the reach of domestic carbon regulations. We investigate their effectiveness using simulations from an applied general equilibrium model of global trade and energy use. We find that the tariffs do reduce foreign emissions, but their ability to improve the global cost-effectiveness of climate policy is limited. Their main welfare effect is to shift the burden of developed-world climate policies to the developing world. |
| Keywords: | climate policy, border tax adjustments, carbon leakage |
| JEL: | D58 H2 Q43 Q54 |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:zen:wpaper:25&r=env |
| By: | Lemoine, Derek |
| Abstract: | An increasingly common type of environmental policy instrument limits the carbon intensity of transportation and electricity markets. In order to extend the policy's scope beyond point-of-use emissions, regulators assign each competing fuel an emission intensity rating for use in calculating compliance. I show that welfare-maximizing ratings do not generally coincide with the best estimates of actual emissions. In fact, the regulator can achieve a higher level of welfare by manipulating the emission ratings than by manipulating the level of the standard. Moreover, a fuel's optimal rating can actually decrease when its estimated emission intensity increases. Numerical simulations of the California Low-Carbon Fuel Standard suggest that when recent scientific information suggested greater emissions from conventional ethanol, regulators should have lowered ethanol's rating (making it appear less emission-intensive) so that the fuel market would clear with a lower quantity. |
| Keywords: | externality, emission, intensity, rating, second-best, Environmental Economics and Policy, H23, Q42, Q58, |
| Date: | 2013–09–30 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaeass:161656&r=env |
| By: | OECD |
| Abstract: | Sweden was facing a serious soil acidification and water eutrophication problem caused partly by emissions of nitrogen oxides (NOx) from combustion processes in transport, industry and power. In 1992, Sweden introduced a high tax on NOx emissions from large combustion sources (e.g. power plants, industrial plants, waste incinerators). The tax was accompanied by a refund according to the amount of energy generated. This ensures that facilities with low NOx emission intensitites are net beneficiaries of the scheme. Continuous monitoring of emissions was also made mandatory. The tax was designed to accelerate and stimulate investment in advanced combustion and pollution-abatement technologies and as a supplement to existing regulatory measures. |
| Date: | 2013–12–24 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaac:2-en&r=env |
| By: | Bhavik Bakshi (Department of Chem. and Biom. Engineering, The Ohio State University); Nathan Cruze (Department of Statistics, The Ohio State University); Tim Haab (Department of Ag., Env., and Dev. Economics, The Ohio State University); Matthew Winden (Department of Economics, University of Wisconsin - Whitewater) |
| Abstract: | We develop a framework for modeling the technological, economic, environmental, and social impacts of the life cycle of seven transportation fuels (Corn, Stover, Switchgrass, Yellow Poplar, Newsprint and Municipal Solid Waste Ethanol Blends, as well as Gasoline), by linking engineering based life cycle analysis of transportation fuels with choice analysis techniques for eliciting and understanding the social preferences for multi-attribute consumption vectors. The use of life-cycle data allows us to account for a broad range of environmental, natural resource, and health effects over the entire production and consumption life cycle of each fuel. Combining these life cycle and stated choice analyses allows for social preferences to be established for the externalities resulting from the use of the different transportation fuels. This results in a unique physical-economic feedback model allowing for improved design and evaluation of transportation policy. Our results indicate first generation biofuels, such as Corn E10 and Corn E85, actually result in a net increase in the value of environmental damage, natural resource use and human health risk relative to gasoline. After accounting for life cycle costs, these popular “alternative” fuel options offer little apparent environmental or health benefits, calling into question policies encouraging their adoption as “green” fuels. For policies with the intent of reducing foreign oil dependency and encouraging resource conservation, these same fuels may have merit. Most of the cellulosic, or second generation, biofuels have the potential to create a net improvement in environmental, natural resource, and human health impacts. Our results indicate significant trade-offs between environmental damage, human health risks and resource depletion rates will have to be made in any attempt to implement alternative fuel policy at a national level. |
| Keywords: | Life Cycle Impact Assessment, Choice Analysis, Fuel Valuation, Integration Techniques |
| JEL: | Q42 Q48 Q51 Q53 |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:uww:wpaper:13-01&r=env |
| By: | Christoph Böhringer (Carl von Ossietzky Universität Oldenburg, Institut für Volkswirtschaftslehre & ZenTra); Jared C. Carbone (University of Calgary and Resources for the Future, Department of Economics); Thomas F. Rutherford (University of Wisconsin, Madison) |
| Abstract: | Unilateral carbon policies are inefficient due to the fact that they generally involve emission reductions in countries with high marginal abatement costs and because they are subject to carbon leakage. In this paper, we ask whether the use of carbon tariffs—tariffs on the carbon embodied in imported goods—might lower the cost of achieving a given reduction in world emissions. Specifically, we explore the role tariffs might play as an inducement to unregulated countries adopting emission controls of their own. We use an applied general equilibrium model to generate the payoffs of a policy game. In the game, a coalition of countries regulates its own emissions and chooses whether or not to employ carbon tariffs against unregulated countries. Unregulated countries may respond by adopting emission regulations of their own, retaliating against the carbon tariffs by engaging in a trade war, or by pursuing no policy at all. In the unique Nash equilibrium produced by this game, the use of carbon tariffs by coalition countries is credible. China and Russia respond by adopting binding abatement targets to avoid being subjected to them. Other unregulated countries retaliate. Cooperation by China and Russia lowers the global welfare cost of achieving a 10% reduction in global emissions by half relative to the case where coalition countries undertake all of this abatement on their own. |
| Keywords: | climate policy, border tax adjustments, carbon leakage, strategic retaliation, applied general equilibrium model |
| JEL: | D58 H2 Q43 Q54 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:zen:wpaper:26&r=env |
| By: | G. Cornelis van Kooten |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:rep:wpaper:2013-01&r=env |
| By: | Hottenrott, Hanna; Rexhäuser, Sascha |
| Abstract: | Significant policy effort is devoted to stimulate the development, adoption and diffusion of environmentally-friendly technology. Sceptics worry about the effects of regulation-induced environmental technology on firms' competitiveness. Since innovation is a crucial productivity driver, a potential crowding out of inventive efforts could increase the cost of mitigating environmental damage. Using matching techniques, we study the short-term effects of regulation-induced environmental technology on non-green innovative activities for a sample of firms in Germany. We find indeed some evidence for a crowding out of the firms' in-house R&D. The estimated treatment effect is larger for firms that are likely to face financing constraints. However, we do not find negative effects on the number of ongoing R&D projects, investments in innovation-related fixed assets or on the outcome of innovation projects. Likewise, for firms with subsidy-backed environmental innovations no crowding out is found. -- |
| Keywords: | Environmental Policy,Regulation,R&D,Technological Change,Innovation,Crowding Out |
| JEL: | Q32 Q33 Q55 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:13115&r=env |
| By: | Yaella Depietri (United Nations University, Institute for Environment and Human Security (UNU-EHS), Institut de Ciència i Tecnologia Ambientals (ICTA), Universitat Autonoma de Barcelona (UAB)); Lorenzo Guadagno (International Organization for Migration (IOM)); Margaretha Breil (Fondazione Eni Enrico Mattei (FEEM) Euro-Mediterranean Center on Climate Change (CMCC)) |
| Abstract: | Under scenarios of increasing unplanned urban expansion, environmental degradation and hazard exposure, the vulnerability of urban populations, especially of their poorer segments, needs to be tackled through integrated economic, social and environmental solutions. Basing our analysis on the concept of ecosystem services, we suggest that urban areas would benefit from a shift in perspective towards a more regional approach, which recognizes them as one of many interconnected elements that interact at the watershed level. By integrating an ecosystem approach into the management of water-related services, urban management policies can take a first step towards fostering an improvement of the health of upstream and downstream areas of the watershed, activating environmentally sound practices which aim at guaranteeing the sustainable and cost effective supply of services. These strategies can for instance be supported by using payment schemes for ecosystem services or similar strategies, allowing for the redistribution of resources among communities in the watershed. From our analysis it results that, through the recognition of the primary role played by watershed ecosystems, cities can benefit from an enlarged set of policies, which can help strengthen the supply of essential environmental services, while reducing the vulnerability of its population and contributing to the maintenance of healthy ecosystems. |
| Keywords: | Urban Watersheds, Ecosystem Services, Water Supply And Sanitation, Disaster Risk Reduction, Valuation |
| JEL: | I14 Q01 Q25 Q54 Q57 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2013.101&r=env |
| By: | Fuhai HONG (Division of Economics, School of Humanities and Social Sciences, Nanyang Technological University, Singapore, 637332.); Larry KARP (Department of Agricultural and Resource Economics, University of California, Berkeley, and the Ragnar Frisch Center for Economic Research.) |
| Abstract: | We examine the effect of endogenous and exogenous risk on the equilibrium (expected) membership of an International Environmental Agreement when countries are risk averse. Endogenous risk arises when countries use mixed rather than pure strategies at the participation game, and exogenous risk arises from the inherent uncertainty about the costs and benefits of increased abate- ment. Under endogenous risk, an increase in risk aversion increases expected participation. Under exogenous risk and pure strategies, increased risk aver- sion weakly decreases equilibrium participation if and only if the variance of income decreases with abatement. |
| Keywords: | International Environmental Agreement, climate agreement, endogenous risk, exogenous risk, risk aversion, mixed strategy. |
| JEL: | D8 H4 Q54 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:nan:wpaper:1310&r=env |
| By: | Klotz, Richard; Bento, Antonio M.; Landry, Joel R. |
| Abstract: | We develop an analytic and numerical model that integrates land, food and fuel markets and is linked with a sectoral emissions model to examine how the amount of biofuel in the economy impacts the lifecycle emissions of a biofuel under different policies. Our central finding is that the change in GHG emissions due to a unit expansion in biofuel will vary dramatically in the amount of biofuel in the economy and with the policy driving the expansion. The emissions from a unit expansion in corn ethanol due to a blend mandate fall from 12 gCO2e/MJ to 3 gCO2e/MJ, as the quantity of ethanol in the economy increases from 6 to 15 billion gallons. For an input subsidy, emissions due to a unit of ethanol increase from 15 gCO2e/MJ to 26 gCO2e/MJ over the same increase in ethanol. We discuss the implications of these results for lifecycle analysis. |
| Keywords: | greenhouse gas emissions, lifecycle analysis, biofuel policies, Environmental Economics and Policy, Resource /Energy Economics and Policy, Q54, C68, Q42, Q48, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaeass:161654&r=env |
| By: | Bhavik Bakshi (Department of Chem. and Biom. Engineering, The Ohio State University); Nathan Cruze (Department of Statistics, The Ohio State University); Tim Haab (Department of Ag., Env., and Dev. Economics, The Ohio State University); Matthew Winden (Department of Economics, University of Wisconsin - Whitewater) |
| Abstract: | This study monetizes the life cycle environmental damage, human health risk, and resource depletion externalities associated with the production and use of biodiesel fuels from soybean feedstock. Utilizing an integrated economic-environmental assessment framework that couples life cycle impacts and a conjoint choice experiment for social preference elicitation allows for a comprehensive comparison of petrodiesel and biodiesel’s external impacts. The results of the study reveal the production and consumption of soybean based biodiesels produce net improvements in environmental, health and resource impacts of $0.27 per gallon relative to petrodiesel for a 20% blend and $3.14 per gallon for a 100% blend. |
| Keywords: | Valuation, Biodiesel, Externality, LCIA |
| JEL: | Q42 Q48 Q51 Q53 |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:uww:wpaper:13-02&r=env |
| By: | Kousky, Carolyn (Resources for the Future); Walls, Margaret (Resources for the Future); Chu, Ziyan (Resources for the Future) |
| Abstract: | Communities in the United States are showing increasing interest in the use of forests, wetlands, and other natural areas to provide protection against extreme events. As the climate changes and such events become more frequent and/or more severe, investments in the conservation of natural areas should become more valuable. But how much more valuable is an open question. In this study, we evaluate the climate resilience benefits of a green infrastructure investment in Missouri: the Meramec Greenway. A buffer of forested lands and other open space, the Meramec Greenway runs along the Meramec River from its confluence with the Mississippi River south of St. Louis into the Ozark uplands. The study builds off of a recent benefit–cost analysis of the Greenway conducted by the authors but evaluates the additional benefits of floodplain conservation that might be provided if floods in the region (a) become more frequent and/or (b) worsen in severity. Results suggest that the benefits of the Greenway in terms of avoided flood damages are greater in both types of climate change scenarios. However, the size of the benefits under current conditions is the more important finding; climate change reinforces the value of the conservation investment but is not the main story. |
| Keywords: | land conservation, extreme weather events, peak discharges, Hazus, avoided flood damages |
| JEL: | Q54 Q57 Q51 Q25 Q24 |
| Date: | 2013–12–06 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-13-38&r=env |
| By: | Stefania Lovo |
| Abstract: | This paper examines the unintended effects of the 2006 reform of the Environmental Impact Assessment (EIA) process in India using firm-level data for the period 1998-2012. The reform favored a decentralization process by delegating the responsibility over environmental clearance of certain activities to state-level authorities. The results show that variations in the strength of environmental enforcement across states has resulted in an increase of births for polluting industries affected by the reform in states with lower level of enforcement. |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp143&r=env |
| By: | Michael FinusAlistair Ulph; Alistair Ulph |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:man:sespap:1329&r=env |
| By: | Emanuele Campiglio |
| Abstract: | The expansion of the share of economic activity taking place in sectors with low or no impact on ecological resources is a crucial component of the transition to a low-carbon society. This “green” structural change is analyzed here by means of a growth model with a ”progressive” manufacturing sector and a ”stagnant” service sector. The latter - which I here name “green services” - represents an increasingly demanded class of activities characterized by high intensity of labour, reduced use of energy and low polluting emissions. Because of the non-substitutability of human participation these activities exhibit no labour productivity growth, while productivity in the manufacturing grows as a result of the presence of a stock of public capital (infrastructure) in its production function. The two sectors are also different in their impact on an open-access asset representing environmental quality, which enters the households welfare function. Along the Balanced Growth Path (BGP) a substitution process between consumption of the “dirty” manufactured good and the open-access asset takes place, leading to a stagnation in welfare despite the positive growth rate. Structural change occurs along the transition to the BGP. The share of employment in the service sector expands any time the initial value of the public-to-private capital ratio is above its BGP level. Finally, the role of infrastructure policies in shaping economy-environment interactions is discussed through a numerical example. |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp141&r=env |
| By: | Francesco Bosello (University of Milan, Fondazione Eni Enrico Mattei (FEEM) and Euro-Mediterranean Center on Climate Change (CMCC)); Enrica De Cian (Fondazione Eni Enrico Mattei (FEEM) and Euro-Mediterranean Center on Climate Change (CMCC)) |
| Abstract: | The climate change impacts on sea level rise and coastal disasters, and the possible adaptation responses have been studied using very different approaches, such as very detailed site-specific engineering studies and global macroeconomic assessments of costal zones vulnerability. This paper reviews the methodologies and the modeling practices used by the sea level rise literature. It points at the strengths and weaknesses of each approach, motivating differences in results and in policy implications. Based on the studies surveyed, this paper also identifies potential directions for future research. |
| Keywords: | Climate Change Impacts, Adaptation, Sea Level Rise |
| JEL: | Q5 Q54 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2013.104&r=env |
| By: | Gómez, O. |
| Abstract: | The present literature review aims to provide a panoramic view of the different ways in which the link between climate change and migration has been addressed in the existing literature, building on the recent non-annotated bibliography issued by the International Organization for Migration in December 2012. After a brief introduction of the background and the plurality of methodologies behind academic studies about the connection of the two phenomena, the review identifies four main themes and debates ongoing in the literature, namely: (1) scale and location of the climate induced migration, (2) mechanisms behind its occurrence, (3) emerging recognition of migration as adaptation, not only as an impact, and (4) measures for its management. Gaps in need of further work are divided into areas for analysis and areas for advocacy. Included among the former are more in situ knowledge production, focus on cities and additional research following a differentiated approach— e.g., gendered. Advocacy approaches need to motivate further research, maintaining advances against the stigmatization of migrants. The review is informed by human security ideas, which are presented as buttressing analyses at levels different from the national, facilitating joined-up thinking and providing a flexible framework to accommodate multiple layers of climate- migration interaction. |
| Keywords: | Global environmental change, human mobility, adaptation, environmental refugees, displacement, human security, human security methodology |
| Date: | 2013–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:ems:euriss:50161&r=env |
| By: | Adrien Vogt-Schilb (CIRED, France); Stéphane Hallegatte (The World Bank, Sustainable Development Network, USA) |
| Abstract: | Decision makers facing abatement targets need to decide which abatement measures to implement, and in which order. Measure-explicit marginal abatement cost curves depict the cost and abating potential of available mitigation options. Using a simple intertemporal optimization model, we demonstrate why this information is not su_cient to design emission reduction strategies. Because the measures required to achieve ambitious emission reductions cannot be implemented overnight, the optimal strategy to reach a short-term target depends on longer-term targets. For instance, the best strategy to achieve European's -20% by 2020 target may be to implement some expensive, high-potential, and long-to-implement options required to meet the -75% by 2050 target. Using just the cheapest abatement options to reach the 2020 target can create a carbonintensive lock-in and make the 2050 target too expensive to reach. Designing mitigation policies requires information on the speed at which various measures to curb greenhouse gas emissions can be implemented, in addition to the information on the costs and potential of such measures provided by marginal abatement cost curves. |
| Keywords: | Climate Change Mitigation, Dynamic Efficiency; Inertia, Sectoral Policies |
| JEL: | L98 Q48 Q54 Q58 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2013.89&r=env |
| By: | Ortiz-Bobea, Ariel (Resources for the Future) |
| Abstract: | Recent reduced-form econometric models of climate change impacts on agriculture assume climate is additive. This is reflected in climate regressors that are aggregated over several months that include the growing season. In this paper I develop a simple model to show how this assumption imposes implausible characteristics on the production technology that are in serious conflict with the agricultural sciences. I test this assumption using a crop yield model of US corn that accounts for variation in weather at various times of the growing season. Results strongly reject additivity and suggest that weather shocks such as extreme temperatures are particularly detrimental toward the middle of the season around flowering time, in agreement with the natural sciences. I discuss how the additivity assumption tends to underestimate the range of adaptation possibilities available to farmers, thus overstating projected climate change impacts on the sector. |
| Keywords: | climate change, agriculture, production, additivity |
| JEL: | Q54 Q51 Q12 |
| Date: | 2013–12–20 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-13-41&r=env |
| By: | Gregor Schwerhoff (Potsdam Institute for Climate Impact Research, Germany) |
| Abstract: | Which kind of reaction can a nation or group of nations expect when leading by example in climate policy? This literature survey describes possible positive reaction mechanisms from different fields of economics, some of which have scarcely been linked to climate economics previously. One effect may be behavioral, a reaction motivated by fairness, reciprocity or norms. Second, other nations may interpret the leader's action as a signal on his preference or the value of the objective and adjust their own policy based on the new information. Third, the leader may provide a service to other nations, which decreases their costs and risks. The followers could benefit by learning successful policies, adopting technologies and obtaining information on the cost of environmental policy. In addition to these economic mechanisms, a leading group of nations might initiate a political process of successive enlargements. |
| Keywords: | Climate Change, Leadership, Public Good Provision |
| JEL: | H41 O33 Q54 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2013.97&r=env |
| By: | Antonio Boggia; Fabrizio Luciani; Gianluca Massei; Luisa Paolotti; Lucia Rocchi; Tommaso Sediari |
| Abstract: | Climate change is a current matter that is viewed as controversial by the general public, within scientific communities and by governments. Among the production sectors, agriculture is the most significantly influenced by the effect of climate change. This study is aimed at understanding and measuring the changes that occur in agricultural systems due to climate, and at determining how climate change can affect both agricultural productivity and the environmental impacts of agricultural systems, by focusing a case study on the Trasimeno Lake (region of Umbria, Italy). The analysis was performed using the CropSyst software package. CropSyst is a multi-year, multicrop, daily time step crop growth simulation model with the possibility of connection with GIS (Geographic Information System) software. The specific typology of climate change that was simulated was the doubling of the amount of CO2 in the atmosphere during a time interval of 100 years (from year 2000 to 2100), according to the hypothesis of the CCM3 model (Govindasamy et al., 2003). The results of our simulation have shown an increase of plant productivity (connected with yield and biomass production) and an invariable situation concerning the indicators of stress by nitrogen, water and temperature. With reference to the environmental situation, our results have shown a general increase of nitrogen lisciviation, as a consequence of the increase of mineralisation, with potential effects on the soil fertility loss, and a decrease of runoff and deep percolation. The erosion indicator did not vary in a significant way. Our CropSyst - GIS system developed for this study has been useful both for the evaluation of the existing data, and for the simulation of future data. |
| Date: | 2013–12–02 |
| URL: | http://d.repec.org/n?u=RePEc:pia:wpaper:125/2013&r=env |
| By: | Massimiliano Mazzanti (University of Ferrara, Department of Economics & Management); Antonio Musolesi (University Grenoble Alpes & INRA France) |
| Abstract: | We study long run carbon emissions-income relationships for advanced countries grouped in policy relevant groups: North America and Oceania, South Europe, North Europe. By relying on recent advances on Generalized Additive Mixed Models (GAMMs) and adopting interaction models, we handle simultaneously three main econometric issues, named here as functional form bias, heterogeneity bias and omitted time related factors bias, which have been proved to be relevant but have been addressed separately in previous papers. The model incorporates nonlinear effects, eventually heterogeneous across countries, for both income and time. We also handle serial correlation by using autoregressive moving average (ARMA) processes. We find that country-specific time-related factors weight more than income in driving the northern EU Environmental Kuznets. Overall, the countries differ more on their carbon-time relation than on the carbon-income relation which is in almost all cases monotonic positive. Once serial correlation and (heterogeneous) time effects have been accounted for, only three Scandinavian countries - Denmark, Finland and Sweden - present some threshold effect on the CO2-development relation |
| Keywords: | Environmental Kuznets Curve, Semiparametric Models, Generalized Additive Mixed Models, Interaction Models |
| JEL: | C14 C23 Q53 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2013.91&r=env |
| By: | Giacomo Marangoni (Fondazione Eni Enrico Mattei (FEEM) and Centro Euro-Mediterraneo sui Cambiamenti Climatici (CMCC), Italy); Massimo Tavoni (Fondazione Eni Enrico Mattei (FEEM) and Centro Euro-Mediterraneo sui Cambiamenti Climatici (CMCC), Italy) |
| Abstract: | This paper uses an integrated assessment model to quantify the climate R&D investment strategy for a variety of scenarios fully consistent with 2°C. We estimate the total climate R&D investment needs in approximately 1 USD Trillion cumulatively in the period 2010-2030, and 1.6 USD Trillions in the period 2030-2050. Most of the R&D would be carried out in industrialized countries initially, but would be evenly split after 2030. We also assess a ‘climate R&D deal’ in which countries cooperate on innovation in the short term, and find that an R&D agreement slightly underperforms a climate policy based on the extension of the Copenhagen pledges till 2030. Both policies are inferior to full cooperation on mitigation starting in 2020. A global agreement on clean energy innovation beyond 2030 without sufficiently stringent GHG emissions reduction policies is found to be incompatible with 2°C. |
| Keywords: | Clean Energy R&D, Endogenous Technical Change, Climate Policy, 2 Degrees, Durban Action Platform |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2013.93&r=env |
| By: | Andrew Prag; Christina Hood; Pedro Martins Barata |
| Abstract: | Mitigation pledges put forward by countries under the UNFCCC process are "made to measure" in that they are tailored to fit each country's individual circumstances. However, the pledges also need to be made to be measured so that we have a full understanding of how the various commitments add up to an aggregate global mitigation effort. The Kyoto Protocol provides the only existing international emissions accounting framework, but it applies only to developed countries with specific commitments. This paper assesses what would be required, in addition to existing reporting requirements, to build a robust emissions accounting framework under the UNFCCC applicable to a broad range of Parties. The paper first identifies necessary building blocks for an emissions accounting framework and assesses progress made in agreeing international reporting processes. It then looks in detail at the two most challenging areas for emissions accounting. The first area is accounting for flows of tradable units from market-based mechanisms, including international flows between linked domestic trading systems as well as from offset crediting mechanisms. The second area is accounting for emissions and removals from the forestry and land-use sectors, which have characteristics that make emissions accounting challenging: the need to distinguish anthropogenic emissions from natural variations, to deal with long time-frames and to measure sinks as well as sources of emissions. Finally, options are presented for how these issues might be taken forward in the negotiations, and how negotiators can build on recent progress made on reporting formats. Options sur mesure pour comptabiliser les émissions dans le cadre de la CCNUCC Établis « sur mesure » en ce sens qu’ils sont adaptés à la situation particulière de chaque pays, les engagements de réduction des émissions pris dans le cadre du processus de la CCNUCC doivent aussi se prêter à la mesure, pour permettre de comprendre pleinement les différents engagements qui concourent à l’effort mondial global de réduction des émissions. Le seul cadre international de comptabilisation des émissions qui existe est celui du Protocole de Kyoto, mais il vaut uniquement pour les pays développés ayant pris des engagements spécifiques. Ce document se propose d’évaluer quels éléments seraient nécessaires, en plus des obligations de notification existantes, pour constituer un cadre de comptabilisation des émissions solide et applicable à un large éventail de Parties dans le contexte de la CCNUCC. Il commence par mettre en évidence les éléments de base nécessaires à un cadre de comptabilisation des émissions et analyse les progrès intervenus dans la définition de processus de notification internationaux. Ensuite, les deux aspects les plus délicats de la comptabilisation des émissions sont examinés en détail. Le premier est la comptabilisation des flux d’unités négociables issues des mécanismes fondés sur le jeu du marché, dont les flux internationaux entre systèmes d’échange nationaux couplés et les unités provenant de systèmes de crédits de compensation. Le second est la comptabilisation des émissions et des absorptions des secteurs de la foresterie et de l’utilisation des terres, dont les caractéristiques imposent de distinguer les émissions anthropiques des variations naturelles, de prendre en compte des horizons temporels longs et de mesurer les puits en plus des sources d’émission. Pour finir, le document présente des solutions envisageables pour faire avancer les négociations sur ces questions et permettre aux négociateurs de s’appuyer sur les progrès intervenus récemment dans le domaine des cadres de présentation. |
| Keywords: | forestry, market-based mechanisms, UNFCCC, climate change, land-use change, emissions accounting, sylviculture, mécanismes de marché, modification de l’affectation des sols, changement climatique, comptabilisation des émissions, UNFCCC |
| JEL: | Q23 Q54 Q56 Q58 |
| Date: | 2013–12–20 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaab:2013/1-en&r=env |
| By: | Chu, Hsun; Lai, Ching-Chong |
| Abstract: | This paper develops an endogenous growth model featuring environmental externalities, abatement R&D, and market imperfections. We compare the economic performances under three distinct regimes that encompass public abatement, private abatement without tax recycling, and private abatement with tax recycling. It is found that the benefit arising from the private conduct of abatement will be larger if the degree of the firms’ monopoly power is greater. With a reasonably high degree of monopoly power, a mixed abatement policy by which the government recycles environmental tax revenues to subsidize the private abatement R&D is a plausible way of reaching the highest growth rate and welfare. |
| Keywords: | abatement R&D, market imperfections, endogenous growth |
| JEL: | H23 O32 O44 Q56 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:52869&r=env |
| By: | Florens Flues (OECD, France, formerly Zentrum für Europäische Wirtschaftsforschung (ZEW), Germany); Dirk Rübbelke (Basque Centre for Climate Change (BC3), and IKERBASQUE – Basque Foundation for Science, Spain); Stefan Vögele (Institute for Energy and Climate Research - Systems Analysis and Technology Evaluation, Forschungszentrum Jülich (IEK-STE), Germany) |
| Abstract: | The iron and steel industry is one of the most carbon emitting and energy consuming sectors in Europe. At the same time this sector is of high economic importance for the European Union. Therefore, while public environmental and energy policies target this sector, there is political concern that it suffers too much from these policy measures. Various actors fear a policy-induced decline in steel production, and possibly an international reallocation of production plants. This study analyzes the role that input prices and public policies may play in attaining an environmentally more sustainable steel production and how this - in turn - affect total steel output. As we find out for examples of major European steel producing countries, a kind of rebound effect of energy-efficiency improvements in steel production on total steel output may arise. |
| Keywords: | Energy Efficiency, Iron And Steel Industry, Environmental Protection, Rebound Effect |
| JEL: | L51 L61 Q43 Q50 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2013.96&r=env |
| By: | Nicholas Stern |
| Abstract: | This paper examines a broad range of ethical perspectives and principles relevant to the analysis of issues raised by the science of climate change and explores their implications. A second and companion paper extends this analysis to the contribution of ethics, economics and politics in understanding policy towards climate change. These tasks must start with the science which tells us that this is a problem of risk management on an immense scale. Risks on this scale take us far outside the familiar policy questions and standard, largely marginal, techniques commonly used by economists; this is a subject that requires the full breadth and depth of what economics has to offer and a much more thoughtful view of ethics than economists usually bring to bear. Different philosophical approaches bring different perspectives on understanding and policy, yet they generally point to the case for strong action to manage climate change. |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp84a&r=env |
| By: | Carlo Fezzi (Department of Economics, University of California and CSERGE (School of Environmental Sciences), University of East Anglia); Ian Bateman (CSERGE (School of Environmental Sciences), University of East Anglia) |
| Abstract: | Ricardian (hedonic) analyses of the impact of climate change on farmland values typically assume additively separable effects of temperature and precipitation. Model estimation is implemented on data aggregated across counties or large regions. We investigate the potential bias induced by such approaches by using a large panel of farm-level data. Consistent with the literature on plant physiology, we observe significant non-linear interaction effects, with more abundant precipitation acting as a mitigating factor for increased heat stress. This interaction disappears when the same data is aggregated in the conventional manner, leading to predictions of climate change impacts which are significantly distorted. |
| Keywords: | Climate Change, Agriculture, Ricardian Analysis, Aggregation Bias, Semi-Parametric Models |
| JEL: | Q54 C23 C14 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2013.94&r=env |
| By: | Roumasset, James; Wada, Christopher |
| Abstract: | To meet the growing demand for freshwater, many regions have increased pumping of groundwater in recent years, resulting in declining groundwater levels worldwide. A promising development is technical change regarding groundwater substitutes such as desalination and wastewater recycling. However, because these technologies are energy intensive, optimal implementation also depends on future energy price trends. We provide an operational model for the application to reverse-osmosis seawater desalination. With this foundation, we outline a research agenda for extending the framework to other groundwater substitutes and for adaptation to climate change. |
| Keywords: | Groundwater management, water-energy nexus, dynamic optimization, Land Economics/Use, Resource /Energy Economics and Policy, Q25, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaeass:161892&r=env |
| By: | Mallidis, I.; Dekker, R.; Vlachos, D. |
| Abstract: | Cap and trade regulations along with an increasing consumer and company demand for green products and services constitute two major drivers for motivating corporations to adopt green practices. However, the adoption of such practices usually increases their operational costs. Therefore, the trade-off between “green” and cost-optimal policies is a common challenge for most organizations, at least in developed countries. The purpose of this paper is to assess alternative logistic network design options (applicable in most supply chains) taking into account both their cost and CO2 emissions performance. The applicability of the proposed methodology is illustrated through the design of a major white good retailer’s logistics network in the region of Greece. The results indicate that a company optimizes its cost performance by serving all its retail stores directly by truck through one central distribution center. On the other hand, a CO2 emissions optimal performance includes additional distribution centers and the employment of rail instead of truck transportation. Moreover, longer review periods, despite the higher holding and backorder costs, result in lower transportation costs and CO2 emissions. |
| Keywords: | CO2 emissions, environment, periodic review inventory control system |
| Date: | 2013–02–04 |
| URL: | http://d.repec.org/n?u=RePEc:ems:eureir:38623&r=env |
| By: | Paolo D. Farah (Edge Hill University, Department of Law & Criminology, UK, gLAWcal, Global Law Initiatives for Sustainable Development, UK); Riccardo Tremolada (Università degli Studi del Piemonte Orientale, Dipartimento di Studi per l’Impresa e il Territorio, Italy, EU Commission Marie Curie Fellow (2013), Chinese Research Academy on Environmental Sciences (CRAES), China, J.D. and LL.M. Università degli Studi di Milano, School of Law, Italy) |
| Abstract: | China is appraised to have the world's largest exploitable reserves of shale gas, although several legal, regulatory, environmental and investment-related issues will likely restrain its scope. China's capacity to successfully face these hurdles and produce commercial shale gas will have a crucial impact on the regional gas market and on China’s energy mix, as Beijing strives to decrease reliance on imported oil and coal, while attempting to meet growing energy demand and maintain a certain level of resource autonomy. The development of the unconventional natural gas extractive industry will also endow China with further negotiating power to obtain more advantageous prices from Russia and future liquefied natural gas (LNG) suppliers. This paper, adopting a comparative perspective, underlines the trends learned from unconventional fuel development in the United States, emphasizing their potential application to the Chinese context in light of recently signed production-sharing contracts between qualified foreign investors and China. The wide range of regulatory and enforcement problems in this matter are accrued by an extremely limited liberalization of gas prices, lack of technological development, and political hurdles curbing the opening of resource extraction to private investors. These issues are exacerbated by concerns related to the risk of water pollution deriving from mismanaged drilling and fracturing, absence of adequate regulation framework and industry standards, entailing consequences on social stability and environmental degradation. |
| Keywords: | Shale Gas, Unconventional Fuel, China, U.S.A., Health, Water, Environmental Risks |
| JEL: | A12 A13 D40 D62 D81 F10 F13 F18 H23 K32 K33 Q4 Q40 Q41 Q42 Q43 Q48 F1 F13 F40 L95 Q3 Q30 Q32 Q33 Q25 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2013.95&r=env |
| By: | Zhen Xu; G. Cornelis van Kooten |
| Abstract: | Two count models are estimated in this analysis to explain the occurrence of wildfire and area burned by wildfire in the interior of British Columbia, Canada. The main explanatory variable is the 4-month lagged El Niño 1&2 index, which is found to have a strong positive influence on wildfire in the study region. As a result of the lag on the climate index, the count models can be used to predict annual wildfire occurrence and the overall monthly size of the area burned by fire districts. An increase in the mean value of the monthly El Niño 1&2 index is projected to result in a slight increase in the number of fires and an increase in the probability that large areas will be burned. Not unexpectedly, however, the impact in July and August could be quite high (increases of 30%). In conclusion, given the large variance, actual changes caused by climate change are uncertain and could be dramatic. |
| Keywords: | Wildfire occurrence and climate change, negative binomial and Pareto distributed count models, El Niño Southern Oscillation |
| JEL: | Q23 Q26 Q51 Q54 R21 R32 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:rep:wpaper:2013-06&r=env |
| By: | Noussair, C.N.; Soest, D.P. van (Tilburg University, Center for Economic Research) |
| Abstract: | Abstract: We summarize and review the literature on two types of economic experiments. First we discuss the use of experimental laboratories to testbed market solutions to issues in environmental policy. We concentrate on experiments with one and two-sided markets, and applications in the domain of water allocation, food safety, and tradable permit systems. Second, we explore the consequences for environmental policies of the vast body of literature refuting the assumption that humans are only concerned with their own private welfare. We review the literature addressing whether government intervention is always necessary to protect the environment, and also whether it is always effective in doing so. |
| Keywords: | Survey;experiment;environment;social dilemma |
| JEL: | C92 Q20 Q30 Q50 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:kubcen:2014001&r=env |
| By: | Klier, Thomas; Linn, Joshua (Resources for the Future) |
| Abstract: | Many countries are tightening passenger vehicle fuel economy standards. In assessing the welfare effects of standards, the literature has not properly accounted either for their effects on the rate of technology adoption, or for improvements in vehicle characteristics in the absence of tightening standards. A dynamic model shows that accounting for both factors has ambiguous effects on estimated welfare costs. We find that recent US and European standards have affected the rate of technology adoption as well as horsepower and torque. Estimated welfare losses from reduced horsepower and torque are of similar magnitude to the welfare gains from fuel savings. |
| Keywords: | passenger vehicles, US greenhouse gas emissions rate standards, European carbon dioxide emissions rate standards, technology adoption |
| JEL: | L62 Q4 Q5 |
| Date: | 2013–12–16 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-13-40&r=env |
| By: | Nicholas Stern |
| Abstract: | Both intergenerational and intratemporal equity are central to the examination of policy towards climate change. However, many discussions of intergenerational issues have been marred by serious analytical errors, particularly in applying standard approaches to discounting; the errors arise, in part, from paying insufficient attention to the magnitude of potential damages, and in part from overlooking problems with market information. Some of the philosophical concepts and principles of Paper 1 are applied to the analytics and ethics of pure-time discounting and infinite-horizon models, providing helpful insights into orderings of welfare streams and obligations towards future generations. Such principles give little support for the idea of discrimination by date of birth. Intratemporal issues are central to problematic and slow-moving international discussions and are the second focus of this paper. A way forward is to cast the policy issues and analyses in a way that keeps equity issues central and embeds them in the challenge of fostering the dynamic transition to the low-carbon economy in both developed and developing countries. This avoids the trap of seeing issues primarily in terms of burden-sharing and zero-sum games – that leads to inaction and the most inequitable outcome of all. |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp84b&r=env |
| By: | Mattia Amadio (Fondazione Eni Enrico Mattei and Centro Euro-Mediterraneo sui Cambiamenti Climatici, Italy); Jaroslav Mysiak (Fondazione Eni Enrico Mattei and Centro Euro-Mediterraneo sui Cambiamenti Climatici, Italy and Agenzia Regionale Prevenzione e Ambiente dell’Emilia-Romagna, Italy); Silvano Pecora (Agenzia Regionale Prevenzione e Ambiente dell’Emilia-Romagna, Italy); Alberto Agnetti (Agenzia Regionale Prevenzione e Ambiente dell’Emilia-Romagna, Italy) |
| Abstract: | River floods are a common natural hazard in Europe, causing high mortality and immense economic damage (EM-DAT 2009). Human-induced climate change will alter intensity and frequency of extreme weather events, hence flood risk (IPCC 2012). While large-scale assessments of flood risk dominate (Genovese, et al. 2007), the knowledge of the effects at smaller scales is poor or incomplete, with few localized studies. The approach of this study starts from the definition of the risk paradigm and the elaboration of local climatic scenarios to track a methodology aimed at elaborating and combining the three elements concurring to the determination of risk: hydrological hazard, value exposure and vulnerability. First, hydrological hazard scenarios are provided by hydrological and hydrodynamic models, included in a flood forecasting system capable to define “what-if” scenario in a flexible way. These results are then integrated with land-use data (exposure) and depth-damage functions (vulnerability) in a GIS environment, to assess the final risk value (potential flood damage) and visualize it in form of risk maps. In this paper, results from a pilot study in the Polesine area (Po river basin) are presented, where four simulated levee breach scenarios are compared. This technique is of great interest to decision makers who are interested in gaining knowledge about possible direct losses from river flooding events. It can also be an important tool to guide decision making and planning processes, to help them understand how to reduce risk to river flood events. As future perspective, the employed methodology can also be extended at the basin scale through integration with the existent flood warning system to gain a real-time estimate of floods direct costs. |
| Keywords: | Flood Risk/Damage Assessment, Hydrological-Hydrodynamic Modelling, Climate Scenarios, Historical Flood Reassessment, Po River Basin District, Polesine Region (Rovigo Province) |
| JEL: | Q25 Q54 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2013.99&r=env |
| By: | Swenja Surminski; Jillian Eldridge |
| Abstract: | Private sector engagement, particularly in relation to public policy based action and strategy, has become a buzz word in most policy areas, but this is often accompanied by a lack of clarity on roles and responsibilities between public and private sector. We investigate this for the new United Nations Framework Convention on Climate Change (UNFCCC) work stream on addressing loss and damage (L&D) from climate change. This paper presents evidence gathered from official submissions by Parties and other bodies to the UNFCCC, the small but growing L&D literature, and experience from the related fields of Disaster Risk Reduction (DRR) and Climate Change Adaptation (CCA). The results from the study show: a degree of ‘vagueness’ when it comes to outlining the role the private sector, but expectation that they will support the emerging L&D framework through knowledge, skills and resource. Private sector engagement is mainly seen in the context of utilizing private sector expertise based in developed countries, rather than assessing current and future impacts on the growing private sector in developing countries. Unclear conceptual boundaries of L&D, DRR and CCA are posing a challenge for stakeholders. While evidence of existing engagement in the L&D debate is noticeable for the insurance industry, there remains only a limited understanding on how to actually measure the effectiveness of such private sector engagement. Creating greater clarity on expectations of and the ability to deliver by the private sector would be important tasks for the UNFCCC to focus on. |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp142&r=env |
| By: | Tomić, Vedran; Janković, Snežana; Kuzevski, Janja; Ljiljanić, Nikola; Radišić, Robert |
| Abstract: | Environmental conditions significantly influence agricultural production, i.e. they are one of the main factors that affect its efficiency. Continuous monitoring of economic results makes it possible to identify the basic elements of revenues and expenditures in production of major agricultural crops, and use these data to plan future production – in other words, to choose the right enterprise for respective environmental conditions. The gross margin is a quick and efficient indicator used to analyse an enterprise when considering economic indicators of different enterprises and choosing the most efficient one in economic terms. In this paper we used the gross margin to compare the two production years with different production conditions, but on the same farms. Therefore, gross margin was used as an adequate indicator that aims to show the difference which is in function of various agro-ecological conditions, price and yield within the period of two years. The paper used the questionnaire carried out in 2011 and 2012 on a total of 69 chosen leader farms from the territory of 11 stations of the Agricultural Extension Service of Serbia. The questionnaire collected data on revenues and expenditures based on which gross margins for maize were calculated. The main indicator of this calculation is the gross margin, which is the difference between the value of production (value of the primary and the secondary product) and total variable costs that covers seed costs, fertilizer costs, costs of plant protection products, diesel fuels and contracted services (for sowing, harvest and labour). In these periods climatic conditions differed significantly. In 2012 there was considerably less precipitation with higher air temperatures, which was one of the main reason for reduced yields per area unit. In 2012, yields decreased by 28%, while price per kilogram of maize increased by about 37%, reducing total value of production by about 1%. It was estimated that total variable costs increased by 6%, while the gross margin was reduced by about 8%. |
| Keywords: | gross margin, chosen leader farm, maize, climatic conditions, value of production, variable costs, Crop Production/Industries, Environmental Economics and Policy, |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ubgc50:161807&r=env |
| By: | Pablo Martín Urbano y Juan Ignacio Sánchez Gutiérrez (Universidad Autónoma de Madrid) |
| Abstract: | Access to car has traditionally been seen as an element of greater welfare of society. This is explained by its ability to increase the mobility of individuals and improving the accessibility of territories. This has led to a huge expansion of infrastructure, public services and private transport. However, increasing the possibilities of movement and accessibility has had a negative social and environmental impact on the citizens. This has resulted in the need to adapt the structure to the growing urban traffic flows and in the spatial extent of cities and periurbanization, affecting urban and non urban functions, frequently confused in a much larger space. The triumph of the automobile has led to the generation of negative externalities associated with the impacts of infrastructure and traffic on the environment (land occupation, physical separation of the territory, greenhouse gases…). Car’s social success has finally turned against society itself, by raising congestion in cities and increasing emissions of greenhouse gases. The sector is facing this situation through the R&D. A very active field is trying to change the technological trajectory of car engines. |
| Keywords: | transport, sustainability, externalities, car. |
| JEL: | Q5 R4 |
| Date: | 2014–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:cjz:ca41cj:19&r=env |
| By: | Howard Kunreuther; Elke U. Weber |
| Abstract: | Utilizing theory and empirical insights from psychology and behavioral economics, this paper examines individuals’ cognitive and motivational barriers to adopting climate change adaptation and mitigation measures that increase consumer welfare. We explore various strategies that take into account the simplified decision-making processes used by individuals and resulting biases. We make these points by working through two examples: (1) investments in energy efficiency products and new technology and (2) adaptation measures to reduce property damage from future floods and hurricanes. In both cases there is a reluctance to undertake these measures due to high and certain upfront costs, delayed and probabilistic benefits and behavioral biases related to this asymmetry. The use of choice architecture through framing and the use of default options coupled with short-term incentives and long-term contracts can encourage greater investment in these measures. |
| JEL: | D03 Q41 Q42 Q54 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:19776&r=env |
| By: | Katherine Sierra, Timmons Roberts, Michele de Nevers, Claire Langley, Cory Smith |
| Abstract: | Are climate finance contributor countries, multilateral aid agencies and specialized funds using widely accepted best practices in foreign assistance? How is it possible to measure and compare international climate finance contributions when there are as yet no established metrics or agreed definitions of the quality of climate finance? As a subjective metric, quality can mean different things to different stakeholders, while of donor countries, recipients and institutional actors may place quality across a broad spectrum of objectives. This subjectivity makes the assessment of the quality of climate finance contributions a useful and necessary exercise, but one that has many challenges. This work seeks to enhance the development of common definitions and metrics of the quality of climate finance, to understand what we can about those areas where climate finance information is available and shine a light on the areas where there is a severe dearth of data. Allowing for comparisons of the use of best practices across funding institutions in the climate sector could begin a process of benchmarking performance, fostering learning across institutions and driving improvements when incorporated in internal evaluation protocols of those institutions. |
| Keywords: | climate change, QUODA, climate finance |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:cgd:wpaper:335&r=env |
| By: | Matthias Weitzel; Wan-Hsin Liu; Andrea Vaona |
| Abstract: | Technology transfer (TT) is not mandatory for Clean Development Mechanism (CDM) projects, yet proponents of CDM argue that TT in CDM can bring new technologies to developing countries and thus not only reduce emissions but also foster development. We review the quantitative literature on determinants of TT in CDM and estimate determinants for CDM projects in China. China is by far the largest host country of CDM projects and it is therefore crucial to understand the factors that drive TT there. We focus on heterogeneity within a single country and results can thus be linked to specific policies of the country for better interpretation. Our probit estimations confirm results of international cross-country studies, indicating that larger projects and more advanced technologies are more likely to involve TT. In addition, we find evidence that agglomeration effects are more pronounced on the province level rather than larger regions. We also find a positive effect of FDI on TT and a complementary role of academic R&D engagement to TT |
| Keywords: | Clean Development Mechanism, Technology Transfer, R&D, Agglomeration, China |
| JEL: | O33 Q55 Q58 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1889&r=env |
| By: | Maria A. Cunha-e-Sa; Sofia F. Franco |
| Abstract: | This paper develops a model of a forest owner operating in an open-city environment, where the rent for developed land is increasing concave in nearby preserved open space and is rising over time reflecting an upward trend in households’ income. Thus, our model creates the possibility of switching from forestry to residential use at some point in the future. In addition it allows the optimal harvest length to vary over time even if stumpage prices and regeneration costs remain constant. Within this framework we examine how adjacent preserved open space and alternative development constraints affect the private landowner´s decisions. We find that in the presence of rising income, preserved open space hastens regeneration and conversion cuts but leads to lower density development of nearby unzoned parcels due to indirect dynamic effects. We also find that both a binding development moratorium and a binding minimum-lot-size policy can postpone regeneration and conversion cut dates and thus help to protect open space even if only temporarily. However, the policies do not have the same effects on development density of converted forestland. While the former leads to high-density development, the latter encourages low-density development. JEL codes: Q23, R11, R14 |
| Keywords: | urban growth, development moratorium, minimum lot size, open space conservation, forest management practices |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:unl:unlfep:wp576&r=env |
| By: | Chevillon, Guillaume (ESSEC Business School) |
| Abstract: | Standard tests for the rank of cointegration of a vector autoregressive process present distributions that are affected by the presence of deterministic trends. We consider the recent approach of Demetrescu et al. (2009) who recommend testing a composite null. We assess this methodology in the presence of trends (linear or broken) whose magnitude is small enough not to be detectable at conventional significance levels. We model them using local asymptotics and derive the properties of the test statistics. We show that whether the trend is orthogonal to the cointegrating vector has a major impact on the distributions but that the test combination approach remains valid. We apply of the methodology to the study of cointegration properties between global temperatures and the radiative forcing of human gas emissions. We find new evidence of Granger Causality. |
| Keywords: | Cointegration; Deterministic trend; Likelihood ratio; Local trends; Global Warming |
| JEL: | C12 C32 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:ebg:essewp:dr-13020&r=env |
| By: | Bekić, Bojana; Roljević, Svetlana |
| Abstract: | In the paper authors analyzed production of sunflower and rapeseed in the metropolitan area Belgrade-Novi Sad, considering the fact that these are economically very important melifferous plants. Authors presented the relation that exists between crops production and beekeeping, from the aspect of ecological and economic benefits. Special emphasis is put on the connection of ecological crop farming and beekeeping. In Vojvodina, sunflower is third the most important crop, after wheat and maize. Sunflower is one of the most important melliferous plants in our country, whose yield depends on pollination successfulness by bees, which activity depends on amount and quality of nectar related to plant variety, sowing time, applied agro-techniques, soil moisture and rainfall, during flowering. In compare to sunflower, which is entirely cross-pollinating plant, rapeseed is partially cross-pollinating plant, which can be pollinated by bees. In both cases, benefits from this mutual “bee-plant” activity, have both crop farmers and beekeepers. Each year, ecological production is increasing. Ecological crop farming combined with beekeeping practice contributes to biodiversity preservation together with favorable social and economic effects. Successful ecological crop production considers, among other, using of domestic varieties adapted to local environmental conditions and therefore more resistant to pests and diseases. On the other hand, one of the basic demands of ecological honey production is pasture on crops non-treated with artificial chemicals or on areas under natural vegetation. Also, in ecological production it is not allowed to use genetically modified crops and honey, which contains pollen gathered from genetically modified plants, must be properly labeled. Certificate about ecological production is a guarantee of product's safety for people and environment. Considering that demand for ecological products increases each year, which is the result of increased fear of consumers regarding non-quality food with possible negative health consequences, possible strategy of agricultural producers could be their reorientation on ecological farming methods. For the analysis of sunflower and rapeseed production in metropolitan area Belgrade-Novi Sad, authors used official data of Statistical Office of the Republic of Serbia for period 2001-2012. Data are used for obtaining descriptive statistical parameters interpreted in the paper. Metropolitan area Belgrade-Novi Sad includes 11 municipalities: Beočin, City of Belgrade, Inđija, Irig, City of Novi Sad, Pančevo, Pećinci, Ruma, Smederevo, Sremski Karlovci and Stara Pazova. Besides official statistics data, authors used relevant domestic and foreign scientific and professional literature presented by: papers published in scientific journals and proceedings, books and monographs, reports at national and international level. According to available statistical data, metropolitan area has 537.449 ha of agricultural land, which is 10,5% of agricultural land in the Republic of Serbia. In observed area, industrial crops are produced on 13% of arable land. One third of areas under industrial crops are covered by sunflower, while rapeseed is produced on 2,3% of these areas, in average. By comparing variation coefficients it can be concluded that variability of areas under rapeseed is 5,7 times larger than variability of areas under sunflower. In average, the most significant areas under sunflower are in Belgrade, than Ruma and Pančevo, while the most significant areas under rapeseed are in Pančevo, Belgrade and Inđija. However, in 2012, the largest areas under sunflower were in Pančevo, Pećinci and Belgrade, while rapeseed was presented the most in Belgrade and Ruma. Areas under sunflower have negative average rate of change (-1,52%), while areas under rapeseed have positive rate of change (16,72%). Total sunflower production in metropolitan area varies from 29.618 - 51.456 tons annually, with average rate of change -0,08%, which can be explained by decreasing of areas under this crop during the last years. Variability of total production is 14,56%. However, variability of rapeseed production is about 6 times higher, but with positive average rate of change (18,34%). Average rapeseed production at the territory of metropolitan is 3.500 tons annually. Average sunflower yields in metropolitan area are about 2 t/ha and are lower than the republic average which is 2,2 t/ha. Authors determined positive rate of change of yield per hectare 0,28%, with variation coefficient 8,30%. Rapeseed yield is about 1,3 t/ha, which is also lower than republic average, with high variation coefficient and positive average rate of change (9,9%) in observed period. To improve and support beekeeping development it is important to stimulate production of sunflower and rapeseed and especially, development of ecological methods of crop farming for the purpose of production of products with added value, more attractive for export at foreign markets. |
| Keywords: | crops, beekeeping, production of ecological products, Crop Production/Industries, Production Economics, Productivity Analysis, Q 10, |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ubgc50:161808&r=env |
| By: | Dambala Gelo (Department of Economics, University of Pretoria); Steven F. Koch (Department of Economics, University of Pretoria); Edwin Muchapondwah (School of Economics, University of Cape Town, Private Bag, Rondebosch 7701, Republic of South Africa) |
| Abstract: | Existing literature have rarely evaluated distributive effect of Joint Forest Management (JFM) augmented with improved market linkages for non-timber forest products nor have they accounted for heterogeneity in the welfare effects. We assess the distributional impact of a unique JFM in Ethiopia in which additional support for improved market linkages for non-timber forest products was provided. The analysis is based on matching and instrumental variable (IV) methods of quantile treatment effects (QTE) evaluation using household data from selected rural villages of Gimbo district, in southwest Ethiopia. The results confirm that the intervention affect outcomes heterogeneously across the welfare distribution. Specifically, the program was found to raise welfare for only those along upper half (median and above) of welfare distribution. Thus, we infer that the program is not pro-poor, and, therefore, is not equity enhancing. Our analysis also revealed that such distributional bias of the program benefit arises from elite capture. |
| Keywords: | Market Linkage, Joint Forest Management, Quantile Treatment Effects, Welfare Distribution |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:201388&r=env |
| By: | G. Cornelis van Kooten |
| Abstract: | This paper deals with forest trade modelling from a theoretical, analytic and empirical perspective. An integrated dynamic log-lumber trade model is developed and then used to examine two trade issues, namely, a reduction of Russian taxes on log exports and removal of the taxes on Canadian lumber destined for the United States. To demonstrate the dynamic aspect of the model, both sets of taxes are lowered over a period of time. The trade model consists of five Canadian regions, three U.S. regions, New Zealand, Australia, Chile, Rest of Latin America, Russia, Sweden, Finland, Rest of Europe, Japan, China, Rest of Asia, and Rest of the World – a total of 20 regions. It concerns only coniferous logs and softwood lumber, ignoring hardwoods. The model is also calibrated on 2010 observed bi-lateral flows of logs and lumber using positive mathematical programming. The forest trade model is written using an Excel-GAMS interface, with input data retrieved by GAMS from Excel and GAMS output written to Excel, where final calculations are made. |
| Keywords: | log-lumber trade, spatial price equilibrium model, mathematical programming |
| JEL: | Q23 Q27 Q28 F17 Q21 |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:rep:wpaper:2013-04&r=env |
| By: | Maria A. Cunha-e-Sa; Sofia F. Franco |
| Abstract: | This paper aims at building a theoretical framework to examine the impact of development pressure on private owner’s forest management practices, namely, on regeneration and conversion cut dates. As the rent for developed land is rising over time, our model creates the possibility of switching from forestry to residential use at some point in the future, thus departing from the Faustmann’s traditional setup. Comparative statics results with respect to stumpage prices, regeneration costs and urban growth parameters are provided. The results obtained depend on the impact on the opportunity cost of holding the stand and the impact on the opportunity cost of holding the land, generalizing Faustmann’s unambiguous results. JEL codes: Q23, R11, R14 |
| Keywords: | urban growth, increasing residential rents, forest management practices |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:unl:unlfep:wp580&r=env |
| By: | Charalampos Konstantinidis |
| Abstract: | Organic farming is often presented as the success story of Rural Development policies in the European Union, having grown from a marginal activity to one covering more than 5% of European agricultural land. Even though organic farming is often thought of as small-scale farming, I show that organic farms in Europe display characteristics associated with capitalist agriculture. Organic farms are larger and more mechanized than conventional farms. Furthermore, organic farms are associated with wage-labor and use less labor per hectare than their conventional counterparts, casting doubt on the efficacy of organic farming in increasing labor demand in marginalized communities and acting as an effective tool for keeping rural residents in the countryside. These results present us with evidence of the “conventionalization†of organic farming, and with a significant case of “green-washing†of capitalist structures of production. |
| Keywords: | political economy, organic farming, agriculture, European Union |
| JEL: | B5 O13 P16 Q18 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:mab:wpaper:21&r=env |
| By: | Youngwan Kim; Peter Nunnenkamp; Chandreyee Bagchi |
| Abstract: | NGOs are widely perceived to raise their flag in humanitarian hot-spots with strong media presence in order to attract higher private donations. We assess this hypothesis by comparing the changes in donations between US-based NGOs with and without activities in the four countries most affected by the tsunami in the Indian Ocean in 2004. Performing a difference-in-difference-in-differences (DDD) approach, we find only weak indications that private donors systematically and strongly preferred active over inactive NGOs |
| Keywords: | natural disaster, non-governmental organizations, private donations, Indian Ocean |
| JEL: | L31 Q54 F35 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1890&r=env |
| By: | Lo, Alex |
| Abstract: | Methodological pluralism advocates balanced consideration of multiple research methods. The concept rests upon the necessity of choice in the absence of conclusive principles to guide the preference of method. Ecological economics, however, appears to be engaging in a different conception creating confusion as to the scope for intellectual openness. This paper offers clarifications for this concept and a critique. Ecological economics advances a coherent theory crafted along its biophysical worldview and moral commitments. These imperatives guide the choice of method and favour a reduced range of methodological possibilities to the exclusion of neoclassical economic options. If ecological economics is seen as an ideological opposite of neoclassical economics, it would need a selective methodological strategy rather than maintaining methodological diversity. Maintaining diversity may erode the basis of its heterodox criticisms by requiring openness to the orthodox alternatives. Ecological economics has shown difficulty in sustaining its long-standing pluralist commitments while increasingly seeking clear differentiation from its monolithic “enemy”. |
| Keywords: | Methodological pluralism; methodological diversity; value pluralism; ecological economics; neoclassical economics. |
| JEL: | B40 Q57 |
| Date: | 2014–01–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:49543&r=env |