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on Environmental Economics |
| By: | Hottenrott, Hanna; Rexhäuser, Sascha; Veugelers, Reinhilde |
| Abstract: | This study investigates productivity effects to firms introducing new environmental technologies. The literature on within-firm organisational change and productivity suggests that firms can get higher productivity effects from adopting new technologies if complementary organisational changes are adopted simultaneously. Such complementarity effects may be of critical importance for the case of adoption of greenhouse gas (GHG) abatement technologies. The adoption of these technologies is often induced by public authorities to limit social costs of climate change, whereas the private returns are much less obvious. We find empirical support for complementarity between green technology adoption and organisational change for a sample of firms located in Germany. The adoption of CO2 reducing and sustainable technologies innovations is associated with lower productivity. The simultaneous implementation of organisational innovations, however, increases the returns to the adoption of green technologies. -- |
| Keywords: | technical change,environmental innovation,organisational change,productivity |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:12043r&r=env |
| By: | Miguel Rodríguez; Yolanda Pena-Boquete |
| Abstract: | The goal of this paper is to make clear cut reasoning for the ambiguous evidence in favour of the Environmental Kuznets Curve (EKC) hypothesis. The EKC for CO2 might be flawed with some sort of misconceptions thus providing misleading guidelines for policy makers. The main contribution of this paper (but not unique) is to provide original explanations to dismiss the EKC according to economic concepts. Thus it goes beyond the usual justification based mainly on inadequate use of econometric techniques. Actually, the controversy in the EKC literature may partially be the result of some kind of “monetary illusion” regarding the usual figures for carbon intensity trends. We may summarize the main policy implication of this paper as follows. Neglecting the EKC on CO2 suggests significant distributional consequences from any climate change policy that eventually put at risk any international climate change agreement. |
| Keywords: | CO2 Emissions, Efficiency, Intensity, Energy Prices,Environmental Kuznet Curve |
| JEL: | Q01 Q43 Q56 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:vig:wpaper:1302&r=env |
| By: | Iizuka M. (UNU-MERIT) |
| Abstract: | Transition towards low carbon development LCD is an urgent challenge for the global community. As increased economic activities usually result in more carbon emissions, this challenge is particularly crucial for rapidly growing emerging countries. For these countries, reducing carbon emissions means taking one or more of the following actions 1 reducing energy intensity; 2 increasing the use of renewable energy; and 3 introducing systemic change. The above actions call for a strong role of policy and government intervention, as observed in the existing literature based on experiences in developed countries. Emerging countries also need to follow the example of advanced countries with regard to LCD; however, the conditions and pathways for emerging countries may differ greatly. This paper reviews the literature that deals with sustainable transition from a systemic perspective to understand existing frameworks and to identify challenges in using them for observing the transition process in developing countries. It looks at the case of Chinese solar PV technology to link theoretical discussion with practice in order to substantiate the arguments. |
| Keywords: | Alternative Energy Sources; Environmental Economics: Technological Innovation; Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth; |
| JEL: | Q42 Q55 Q56 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2014002&r=env |
| By: | David Walker (School Economics, La Trobe University) |
| Abstract: | Concern for the Earth’s changing climate, as a consequence of rising greenhouse gas (GHG) concentrations in the atmosphere, has led to policies aimed at reducing GHG emissions and increasing carbon sequestration. In Australia this has been acknowledged in the New South Wales Greenhouse Gas Abatement Scheme and the Carbon Farming Initiative, which provide price incentives for forest-based sequestration. However, the issue of the most appropriate accounting scheme to account for the impermanence of forest based sequestration has been debated and remains unresolved in policy documents. The objective of the paper is to investigate the economic potential for forest-based sequestration to reduce carbon dioxide concentrations in the atmosphere for three different accounting schemes. To this end, a model of the New South Wales forest sector is developed to simulate changes in land use from agriculture to forestry; and in forest management, for a range of carbon prices and accounting regimes. The model builds on previous modelling of forestry in Australia and that of forest-based sequestration by incorporating: endogenous timber prices; the probability of fire destroying a portion of the forest; and an increasing opportunity cost of agricultural land. Importantly, the paper improves our understanding of the sector wide potential for carbon sequestration for the different accounting rules. |
| Keywords: | Carbon sequestration, carbon accounting, forestry, forest-sector model |
| JEL: | C61 L52 Q15 Q23 Q54 |
| URL: | http://d.repec.org/n?u=RePEc:trb:wpaper:2014.02&r=env |
| By: | Paul David (Stanford University); Adriaan van Zon (United Nations University) |
| Abstract: | The research reported here gives priority to understanding the inter-temporal resource allocation requirements of a program of technological changes that could halt global warming by completing the transition to a "green" (zero net CO2- emission) production regime within the possibly brief finite interval that remains before Earth's climate is driven beyond a catastrophic tipping point. This paper formulates a multi-phase, just-in-time transition model incorporating carbon-based and carbon-free technical options requiring physical embodiment in durable production facilities, and having performance attributes that are amenable to enhancement by directed R&D expenditures. Transition paths that indicate the best ordering and durations of the phases in which intangible and tangible capital formation is taking place, and capital stocks of different types are being utilized in production, or scrapped when replaced types embodying socially more efficient technologies, are obtained from optimizing solutions for each of a trio of related models that couple the global macro-economy's dynamics with the dynamics of the climate system. They describe the flows of consumption, CO2 emissions and the changing atmospheric concentration of greenhouse gas (which drives global warming), along with the investment dynamics required for the timely transformation of the production regime. |
| Keywords: | global warming, tipping point, catastrophic climate instability, extreme weather†related damages, R&D, directed technical change, capitalâ€embodied technologies, optimal sequencing, multiâ€phase optimal control, sustainable endogenous growth |
| JEL: | Q54 Q55 O31 O32 O3 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:sip:dpaper:12-029&r=env |
| By: | Thomas Coisnon (GRANEM, Agrocampus Ouest, Université d’Angers, 2 rue André Le Nôtre 49000 Angers, France); Walid Oueslati (Centre for Rural Economy, University of Newcastle, Newcastle NE1 7RU, UK); Julien Salanié (Université de Lyon, Lyon, F-69007, France ; CNRS, GATE Lyon St Etienne,F-69130 Ecully, France, Université Jean Monnet, Saint-Etienne, F-42000, France) |
| Abstract: | Widespread public support exists for the provision of natural amenities, such as lakes, rivers or wetlands, and for efforts to preserve these from agricultural pollution. Agri-environmental policies contribute to these efforts by encouraging farmers to adopt environmentally friendly practices within the vicinity of these ecosystems. A spatially targeted agri-environmental policy promotes natural amenities and may thereby affect household location decisions. The purpose of this paper is to investigate the extent of these impacts on the spatial urban structure. We extend a monocentric city model to include farmers’ responses to an agri-environmental policy. Our main findings are that the implementation of a spatially targeted agrienvironmental policy may lead to some additional urban development, which could conflict with the aim of the policy. |
| Keywords: | Land development, Urban sprawl, Leapfrog, Land rent, Monocentric model, Farming, Agri-environmental policy, Spatial targeting, Agricultural pollution |
| JEL: | R14 R21 Q18 Q24 Q25 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:gat:wpaper:1401&r=env |
| By: | Huse, Cristian |
| Abstract: | In the first year after the inception of the Swedish Green Car Rebate (GCR), green cars had carved over 25 percent market share in the new vehicle market, an effect of unprecedented scale if compared to recent policies incentivizing the purchase of fuel-efficient vehicles. By awarding vehicles satisfying certain emission criteria a rebate, but giving alternative fuel vehicles (AFVs, those able to run on alternative fuels) a more lenient treatment than regular fuel vehicles (RFVs, those able to run only on gasoline and diesel), the GCR created a regulatory loophole which led carmakers to increase the emissions of AFVs as compared to RFVs. This paper examines the impact of regulation on market developments comparing CO2 emissions (and fuel economy) of AFVs and RFVs. Once carmakers adjust their product lines to the policy, CO2 emissions of AFVs increased significantly as compared to those of RFVs, thus undermining the very objectives of the GCR. |
| Keywords: | Automobiles; Emissions; Environmental policy; Alternative fuel vehicles; Flexible-fuel vehicles; Fuel economy; Greenhouse gases; Regulation; Alternative fuels; Renewable fuels. |
| JEL: | H23 L51 L62 L98 Q42 Q48 Q53 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:48909&r=env |
| By: | Horii, Ryo; Ikefuji, Masako |
| Abstract: | This paper examines the implications of the mutual causality between environmental quality and economic growth. While economic growth deteriorates the environment through increasing amounts of pollution, the deteriorated environment in turn limits the possibility of further economic growth. In a less developed country, this link, which we call "limits to growth," emerges as the "poverty-environment trap," which explains the persistent international inequality both in terms of income and environment. This link also threatens the sustainability of the world's economic growth, particularly when the emission of greenhouse gases raises the risk of natural disasters. Stronger environmental policies are required to overcome this link. While there is a trade-off between the environment and growth in the short run, we show that an appropriate policy can improve both in the long run. |
| Keywords: | Environmental Kuznets Curve, Limits to Growth, Poverty-Environment Trap, Sustainability, Natural Disasters |
| JEL: | O41 O44 Q54 Q56 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:53624&r=env |
| By: | Giuseppe Piroli; Miroslava Rajcaniova; Pavel Ciaian; d'Artis Kancs |
| Abstract: | This is the first paper that econometrically estimates the impact of the rising Bioenergy production on the global CO2 emissions. We apply a structural vector autoregression (SVAR) approach to time series with annual observation for the world biofuel production and global CO2 emissions from 1961 to 2009. We find that in the medium- to long-run biofuels significantly reduce global CO2 emissions: the CO2 emission elasticities with respect to biofuels range between -0.57 and -0.80. In the short-run, however, biofuels may increase CO2 emissions temporarily (elasticity 0.57). Our findings complement those of life-cycle assessment and simulation models. However, by employing a more holistic approach and obtaining more robust estimates of environmental impact of biofuels, our results are particularly valuable for policy makers. |
| Keywords: | Biofuels, C02 emissions, environmental impact, SVAR. |
| JEL: | C14 C22 C51 D58 Q11 Q13 Q42 |
| Date: | 2014–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:eei:rpaper:eeri_rp_2014_01&r=env |
| By: | Christoph Böhringer (University of Oldenburg - Economic Policy & ZenTra); Andre Müller (Ecoplan); Jan Schneider (University of Oldenburg - Economic Policy) |
| Abstract: | Concerns about adverse impacts on domestic energy-intensive and trade-exposed (EITE) industries are at the fore of the political debate about unilateral climate policies. Tariffs on the carbon embod-ied in imported goods from countries without emission pricing appeal as a measure to reduce carbon leakage and protect domestic EITE industries. We show that the introduction of carbon tariffs can do more harm than good to domestic EITE industries. Two determinants drive the sign and magnitude of EITE impacts. Firstly, the composition of embodied emissions in goods: if a large share of embodied carbon is imported in intermediate inputs, industries might suffer from carbon tariffs. Secondly, the share of domestic output that is supplied to the export market: while carbon tariffs level the playing field on domestic markets, they increase the cost-disadvantage vis-à-vis competitors from abroad in foreign markets. |
| Keywords: | carbon tariffs, unilateral climate policy, multi-region input-output analysis, CGE |
| JEL: | Q58 D57 D58 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:zen:wpaper:33&r=env |
| By: | Kai Lessmann (Potsdam Institute for Climate Impact Research (PIK)); Ulrike Kornek (Potsdam Institute for Climate Impact Research (PIK)); Valentina Bosetti (Università Bocconi and Fondazione Eni Enrico Mattei (FEEM)); Rob Dellink (Environmental Economics and Natural Resources Group, Department of Economics, Wageningen University); Johannes Emmerling (Fondazione Eni Enrico Mattei (FEEM) and Centro Euro-Mediterraneo sui Cambiamenti Climatici (CMCC)); Johan Eyckmans (KU Leuven – Center for Economics and Corporate Sustainability (CEDON)); Miyuki Nagashima (Research Institute of Innovative Technology for the Earth); Hans-Peter Weikard (Environmental Economics and Natural Resources Group, Department of Economics, Wageningen University); Zili Yang (Department of Economics, State University of New York at Binghamton) |
| Abstract: | In this paper we report results from a comparison of numerically calibrated game theoretic integrated assessment models that explore stability and performance of international coalitions for climate change mitigation. Specifically, by means of this ensemble of models we are able to identify robust results concerning incentives of nations to commit themselves to a climate agreement, and to estimate what stable agreements can achieve in terms of greenhouse gas mitigation. We also assess the potential of transfers that redistribute the surplus of cooperation in order to foster stability of climate coalitions. In contrast to much of the existing analytical game theoretical literature, we find substantial scope for self-enforcing climate coalitions in most models that close much of the abatement and welfare gap between complete absence of cooperation and full cooperation. This more positive message follows from the use of transfer schemes that are designed to counteract free riding incentives. |
| Keywords: | Coalition Stability, International Environmental Agreements, Numerical modeling, Transfers |
| JEL: | Q5 Q58 C7 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2014.05&r=env |
| By: | George Papageorgiou; George Halkos |
| Abstract: | This paper computes and analyses for the first time environmental efficiencies in waste generation of 160 European regions in NUTS 2 level in seven European countries. For this reason different Data Envelopment Analysis (DEA) model formulations are used modeling the pollutant in the form of waste generation as a regular output and as a regular input. In the latter case we also use the notion of ecoefficiency. The empirical findings reveal environmental inefficiencies among the regions indicating the lack of a uniform regional environmental policy among the European countries. This finding is observed not only between countries but also between regions in the same country, implying the need for implementation of appropriate municipal environmental policies in waste management. |
| Keywords: | Environmental efficiency, Waste generation, European regions, Data Envelopment Analysis |
| JEL: | C6 O13 O52 Q50 Q53 Q56 R11 |
| Date: | 2014–02–03 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:1401&r=env |
| By: | Auci, Sabrina; Vignani, Donatella |
| Abstract: | Climate changes, associated to atmospheric accumulation of greenhouse gases, could alter level of temperature at the surface, rainfalls and regional water supplies. There are many areas of the Earth that will cope with a rapid increasing of warming at the surface and with an extremization of weather conditions. Although many economic sectors are influenced, agriculture is the most susceptible as weather heavily affects crop production trends, yield variability and reduction of areas suitable to be cultivated. Climate change effects represent a “challenge” that European agriculture has to face in the immediate future. The aim of our work is to analyze the economic impacts of climate change on agricultural sector in Italy at regional scale (NUTS2) in the light of mitigation policies undertaken by Italy in accordance with the commitments made by the EU Policy in the struggle against climate change. Using the stochastic frontier approach, we investigate on the Italian Regions efficiency in the period 2000-2010. Considering that inefficiency could be influenced by two main meteorological factors – rainfall and minimum temperature– we find that rainfall variable has a positive impact on efficiency while minimum temperature variable reduces the efficiency of harvested production. |
| Keywords: | Climate change effects, agricultural sector, mitigation and adaptation, Italian Regions efficiency, stochastic frontier approach |
| JEL: | Q10 Q54 |
| Date: | 2014–01–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:53500&r=env |
| By: | Pannell, David J; Gibson, Fiona L |
| Abstract: | Decision makers responsible for the allocation of funds to environmental projects commonly use project scoring metrics that are not consistent with basic economic theory. As a result, there is often a loss of environmental benefits due to poor prioritisation of projects. The magnitudes of these losses are estimated for various metrics that deviate from theory. We examine cases where relevant variables are omitted from the benefits metric, project costs are omitted, and where parameters are weighted and added when they should be multiplied. Distributions of parameters are estimated from 129 environmental projects from Australia, New Zealand and Italy for which Benefit: Cost Analyses had previously been completed. The cost of using poor prioritisation metrics (in terms of lost environmental values) is often high – up to 80 per cent in the scenarios examined. The cost is greater where the budget is smaller. The most costly errors were found to be omitting information about environmental values, project costs or the effectiveness of management actions, and using a weighted additive decision metric for variables that should be multiplied. The latter three of these are errors that occur commonly in real-world decision metrics, often reducing potential environmental benefits by 30 to 50 per cent. |
| Keywords: | Cost Analysis, Prioritisation, Environmental program, Knapsack problem, Environmental Economics and Policy, Q50, |
| Date: | 2014–02–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uwauwp:163211&r=env |
| By: | Uetake, Tetsuya |
| Abstract: | To secure the provision of agri-environmental public goods such as biodiversity, in many cases, government intervention is necessary. Government intervention means taxpayers cover parts of the costs for the provision. Thus, it is necessary to examine the distribution of burdens for the provision among stakeholders. Environmental reference levels are defined as the minimum level of environmental quality that farmers are obliged to provide at their own expense. By applying the reference level framework established by OECD to some cases in some countries (Australia, Japan, the Netherlands, the United Kingdom and the United States) this paper examines the distribution of burdens for providing agri-environmental public goods. This paper found several patterns of the reference levels. They should be clearly defined so as to clarify the extent to which farmers and other stakeholders should bear the costs. |
| Keywords: | Public goods, reference levels, environmental targets, distribution of burdens, agriculture, Agribusiness, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa140:163344&r=env |
| By: | Florian Mueller (Faculty of Economic Sciences, University of Warsaw) |
| Abstract: | This study examines the linkage between corporate social responsibility and stock market returns in the USA, Canada, Germany, the United Kingdom and Switzerland. Concentrating on corporate disclosure and corporate eco-efficiency, we find mostly mixed results by employing factor performance attribution models. A theoretical framework to model the real underlying relation is presented. |
| Keywords: | Corporate Social Responsibility, Corporate Sustainability, Corporate Disclosure, Eco-Efficiency, Environmental Performance, Asset Pricing Models, Performance Evaluation, Portfolio Analysis, ESG (environmental, social, governance), Asset Selection |
| JEL: | C51 G11 G15 G17 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:war:wpaper:2014-02&r=env |
| By: | Amor, Mourad Ben; Billette de Villemeur, Etienne; Pellat, Marie; Pineau, Pierre-Olivier |
| Abstract: | With the growing share of wind production, understanding its impacts on electricity price and greenhouse gas (GHG) emissions becomes increasingly relevant, especially to design better wind-supporting policies. Internal grid congestion is usually not taken into account when assessing the price impact of fluctuating wind output. Using 2006-2011 hourly data from Ontario (Canada) , we establish that the impact of wind output, both on price level and marginal GHG emissions, greatly differs depending on the congestion level. Indeed, from a 3.3% price reduction when wind production doubles, the reduction jumps to 5.5% during uncongested hours, but is only 0.8% when congestion prevails. Similarly, avoided GHG emissions due to wind are estimated to 331.93 kilograms per megawatt-hour (kg/MWh) using all data, while for uncongested and congested hours, estimates are respectively 283.49 and 393.68 kg/MWh. These empirical estimates, being based on 2006-2011 Ontario data, cannot be generalized to other contexts. The main contribution of this paper is to underscore the importance of congestion in assessing the price and GHG impacts of wind. We also contribute by developing an approach to create clusters of data according to the congestion status and location. Finally, we compare different approaches to estimate avoided GHG emissions. |
| Keywords: | Wind energy; Electricity prices; Congestion; marginal GHG emissions. |
| JEL: | L94 Q4 Q42 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:53630&r=env |
| By: | Claudia Kettner; Angela Köppl; Sigrid Stagl |
| Abstract: | Questioning GDP as dominant indicator for economic performance has become commonplace. For economists economic policy always aims for a broader array of goals (like income, employment, price stability, trade balance) alongside income, with income being the priority objective. The Stiglitz-Sen- Fitoussi Commission argued for extending and adapting key variables of macroeconomic analysis. International organisations such as the EC, OECD, Eurostat and UN have proposed extended arrays of macroeconomic indicators (see ‘Beyond GDP’, ‘Compendium of wellbeing indicators’, ‘GDP and Beyond’, 'Green Economy', 'Green Growth', 'Measuring Progress of Societies'). Despite these high profile efforts, few wellbeing and environmental variables are in use in macroeconomic models. The reasons for the low uptake of socio-ecological indicators in macroeconomic models range from path dependencies in modelling, technical limitations, indicator lists being long and unworkable, choices of indicators appearing ad hoc and poor data availability. In this paper we review key approaches and identify a limited list of candidate variables and – as much as possible – offer data sources. |
| Keywords: | Academic research, Beyond GDP, Biophysical constraints, Ecological integrity, Economic growth path, Socio-ecological transition, Wealth, Wellbeing |
| JEL: | D6 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:feu:wfewop:y:2014:m:2:d:0:i:52&r=env |
| By: | Brice ARNAUD |
| Abstract: | This paper analyses the efficiency of Extended Producer Responsibility (EPR) to manage household packaging wastes. We use a Mussa-Rosen type model of vertical product differentiation: two firms produce a homogeneous good and use packaging to create a subjective vertical differentiation. We verify that an ERP characterised by a Pigouvian tax – producers bear the social cost of waste management – is not an optimal policy. We show then that an optimal policy is an adjusted Pigouvian tax, accounting for waste management costs. |
| Keywords: | duopoly, extended producer responsibility, packaging, pigouvian tax, vertical differentiation. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:grt:wpegrt:2014-04&r=env |
| By: | Winands, Sarah; Holm-Müller, Karin |
| Abstract: | The United Nations' Convention on Biological Diversity raised expectations of high benefits in genetic resource trade with megadiverse countries. As a reaction the Andean Community (CAN) passed strict community access legislation. Against this background the main objective of this paper is to investigate whether public eco-regional cartels of megadiverse countries on the genetic resource market can increase the appropriable benefits from biodiversity. We analyse how cartel design affects cartel benefits and discuss the benefit distribution among cartel members. As a case study we examine the CAN community access legislation (Decision 391) in the light of biodiversity collusion. Our main finding is that cartels-contrary to their negative connotation-are potentially able to stimulate genetic resource trade, increase the providers' appropriable benefits from biodiversity, and reduce the costs for customers. This depends largely on the cartel design and the ability to attract bioprospecting agents. A member's benefit share rises in the member's relative biodiversity richness and even more in the quality of the institutional environment. The CAN collusion nullifies its market power by a deterringly overly strict access regulation and a lack of internal cooperation. |
| Keywords: | cartel formation, genetic resource market, Andean Community, CBD, institutional analysis, Environmental Economics and Policy, Industrial Organization, Institutional and Behavioral Economics, International Relations/Trade, Political Economy, F53, K23, Q27, Q28, Q57, |
| Date: | 2014–01–30 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ubfred:163046&r=env |
| By: | Jordi Teixidó-Figueras (Universitat Rovira i Virgili, Departament d'Economia, CREIP, XREAPUniversity of Barcelona, Barcelona, Spain); Juan Antonio Duro (Universitat Rovira i Virgili, Departament d'Economia, CREIP, XREAP) |
| Abstract: | The international allocation of natural resources is determined, not by any ethical or ecological criteria, but by the dominance of market mechanisms. From a core-periphery perspective, this allocation may even be driven by historically determined structural patterns, with a core group of countries whose consumption appropriates most available natural resources, and another group, having low natural resource consumption, which plays a peripheral role. This article consists of an empirical distributional analysis of natural resource consumption (as measured by Ecological Footprints) whose purpose is to assess the extent to which the distribution of consumption responds to polarization (as opposed to mere inequality). To assess this, we estimate and decompose different polarization indices for a balanced sample of 119 countries over the period 1961 to 2007. Our results points toward a polarized distribution which is consistent with a core-periphery framework. |
| Keywords: | Polarization, Core-Periphery, Ecological Footprint |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:xrp:wpaper:xreap2014-02&r=env |
| By: | Sonia SCHWARTZ (Université d'Auvergne); Jean Galbert ONGONO OLINGA; Eric Nazindigouba KERE; Pascale COMBES MOTEL; Jean-Louis COMBES; Johanna CHOUMERT; Ariane Manuela AMIN |
| Abstract: | Protected areas are increasingly used as a tool to fight against deforestation. This paper presents new evidence on the spillover effects that occur in the decision to deforest and the creation of protected areas in local administrative entities in Brazilian Legal Amazon over the 2001-2011 period. We also highlight the interdependence between these two decisions. We proceed in two steps. First, we assumed that protected areas are created to stop the negative effects of deforestation on biodiversity. In order to control for the non-random location of protected areas, biodiversity indicators are used as excluded instruments. This model is estimated using a spatial model with instrumental variables. Second, a simultaneous system of spatially interrelated cross sectional equations is used to take into account the interdependence between the decision to deforest and the creation of protected areas. Our results show (i) that deforestation activities of neighboring municipalities are complements and that (ii) there is evidence of leakage in the sense that protected areas may shift deforestation to neighboring municipalities. The net effect of protected areas on deforestation remains however negative; it is moreover stable across two sub-periods. Our results confirm the important role of protected areas to curb deforestation and thereby biodiversity erosion. Moreover, they show that strategic interactions deserve attention in the effectiveness of conservation policies. |
| Keywords: | Protected areas; deforestation; spatial interactions; simultaneous equations; Brazil; Amazon |
| JEL: | C31 Q57 Q23 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:cdi:wpaper:1537&r=env |
| By: | Georg Zachmann; Amma Serwaah; Michele Peruzzi |
| Abstract: | See also blog post 'Does Europe need a renewables target?' Low-carbon energy technologies are pivotal for decarbonising our economies up to 2050 while ensuring secure and affordable energy. Consequently, innovation that reduces the cost of low-carbon energy would play an important role in reducing transition costs. We assess the two most prominent innovation policy instruments (i) public research, development and demonstration (RD&D) subsidies and (ii) public deployment policies. Our results indicate that both deployment and RD&D coincide with increasing knowledge generation and the improved competitiveness of renewable energy technologies. We find that both support schemes together have a greater effect that they would individually, that RD&D support is unsurprisingly more effective in driving patents and that timing matters. Current wind deployment based on past wind RD&D spending coincides best with wind patenting. If we look into competitiveness we find a similar picture, with the greatest effect coming from deployment. Finally, we find significant cross-border effects, especially for winddeployment. Increased deployment in one country coincides with increased patenting in nearby countries. Based on our findings we argue that both deployment and RD&D support are needed to create innovation in renewable energy technologies. However, we worry that current support is unbalanced. Public spending on deployment has been two orders of magnitude larger (in 2010 about â?¬48 billion in the five largest EU countries in 2010) than spending on RD&D support (about â?¬315 million). Consequently, basing the policy mix more on empirical evidence could increase the efficiency of innovation policy targeted towards renewable energy technologies |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:bre:wpaper:811&r=env |
| By: | Alessio D’Amato (DEF and CEIS, Univesità di Roma Tor Vergata and SEEDS (Italy).); Massimiliano Mazzanti (Departiment of Economics, Università di Ferrara (italy).); Francesco Nicolli (Ceris-CNR, Institute for Economic Research on Firms and Growth, National Research Council of Italy.); Mariangela Zoli (DEF and CEIS, Univesità di Roma Tor Vergata and SEEDS (Italy).) |
| Abstract: | This paper investigates if and how illegal disposal of waste is affected by the decentralized waste management commitment of local governments and by enforcement policies. On the basis of a panel dataset at the Italian provincial level that originally integrates waste, economic, policy and enforcement data, our empirical analysis presents two main insights. First, a more diffuse commitment towards incentive based waste policy tends to increase illegal disposal. Second, a non-linear bell shaped relationship exists between enforcement and illegal disposal, namely deterrence only results after a (relatively high) level of controls is implemented. |
| Keywords: | waste management, illegal disposal, forestry corps, enforcement, regional settings, waste tariffs, ecological-economic data. |
| JEL: | Q53 K42 D73 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:0314&r=env |
| By: | Jair N. OJeda; Julián A. Parra Polanía; Carmiña O. Vargas |
| Abstract: | This document analyzes the macroeconomic effects of a boom in a small-open economy’s natural-resource sector. We study the effects of this shock on the most important macroeconomic variables, the resource reallocation across sectors and on welfare under alternative fiscal rules. We employ a DSGE featuring three productive sectors (non-tradable, manufacturing and commodity goods), government and two types of consumers (Ricardian and non-Ricardian). Our results show that the natural-resource boom leads to an initial reduction of the manufacturing sector’s employment and production. The opposite temporal effect is obtained in the remaining two productive sectors. However, the effect on welfare is positive for all consumers since the boom increases consumption in all households. Finally, we find that a countercyclical fiscal rule leads to a slight increase in welfare compared with a balanced-budget rule. |
| Keywords: | Fiscal rule, Natural-Resource Boom, Consumer Welfare, Equilibrium Model Classification JEL: E62, F47, H30, H63 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:bdr:borrec:807&r=env |
| By: | Brüning, Anna |
| Abstract: | Due to the 3rd Energy Package of 2009 the regulation of European electricity transmission did change considerably. Before, cross-border electricity issues have been regulated by voluntary contractual agreements between Transmission System Operators. Now, the new-founded Agency for the Cooperation of Energy Regulators (ACER) and the European Network of Transmission System Operators for Electricity (ENTSO-E) are guiding this process together with the European Commission. Currently, these organizations are developing network codes to be implemented as binding EU electricity transmission regulation within the next years. This paper analyzes, if this new regulation process does promote the creation of an internal electricity market as well as a better integration of intermittent renewable ('green') energies due to the multilevel governance approach. -- |
| Keywords: | EU Energy Policy,Transmission Grids,Renewable Energies,Regulation Theory,Multi-level Governance Theory |
| JEL: | L43 L59 L94 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ipewps:312014&r=env |
| By: | Claudia Hitaj; Andrew Stocking |
| Abstract: | Focusing on the U.S. sulfur dioxide (SO2) allowance market from its inception (in 1994) to 2009, we model allowance prices to determine the influence of market fundamentals—such as prices of high- and low-sulfur coal—on allowance price level and volatility. Our empirical analysis finds that the SO2 market, similar to other emission markets studied in the literature, had relatively weak influence of market fundamentals for several years after launch—that is, allowance prices did not reflect marginal abatement costs for the first several years of operation. However, we find evidence of increased influence of market fundamentals after the first few years of the program but before a court decision that introduced significant uncertainty into the market in mid-2008. We also find that market volatility increased in response to all types of communications from the administrator, suggesting that the development of a formal communication strategy, possibly similar to the strategy used by central banks, would reduce price volatility and increase the efficiency of the market. |
| Date: | 2014–01–27 |
| URL: | http://d.repec.org/n?u=RePEc:cbo:wpaper:45044&r=env |
| By: | Santra, Swarup |
| Abstract: | Economic Indicators alone cannot capture the totality of ‘Quality of Life’ (QOL). The Most acceptable Measure of QOL is the ‘Human Development Index’ (HDI) of UNDP. HDI is a composite Index of three Indicators of three essential dimensions of life. These three indicators are of per capita GDP adjusted to purchasing power, life expectancy at birth, and adult literacy rate(including the gross school enrollment ratios). While, the measurement of HDI is considered as a measure of Human well-being, it ignores the other dimension of life, which is the quality of natural environment. Human being lives within this natural environment. In a polluted environment, human being cannot be stay well. In this study, it was examined whether the Quality of Air is Reflected through the HDI or not. In this study, the result has been come out that the Quality of Air is reflected through the HDI only for the Developing Countries. But, in case of Developed Countries, the Quality of Air is not reflected through the HDI. |
| Keywords: | Composite Index for Quality of Air(CIQA), Human Development Index (HDI), Principal Component Analysis(PCA), Spearman’s Rank correlation Coefficient |
| JEL: | O15 Q53 |
| Date: | 2014–01–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:53522&r=env |