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on Environmental Economics |
| By: | Abolhosseini, Shahrouz (Seoul National University); Heshmati, Almas (Sogang University); Altmann, Jörn (Seoul National University) |
| Abstract: | The increased concerns about climate change have made renewable energy sources an important topic of research. Several scholars have applied different methodologies to examine the relationships between energy consumption and economic growth of individual and groups of countries and to analyze the environmental effects of energy policies. Previous studies have analyzed carbon emission savings, using renewable energy usage as an individual source or in combination with traditional sources of energy (e.g., hybrid plants) in connection with lifecycle analysis methods. It is shown that after a certain period, economic growth leads to the promotion of environmental quality. However, econometric modelling critiques have opposed the results of these studies. One reason is that the effectiveness of governance-related parameters has previously been neglected. In this research, we analyze the impact of renewable energy development on carbon emission reduction. We estimate a model to evaluate the effectiveness of renewable energy development, technological innovation, and market regulations in carbon emission reduction. The empirical results are based on a panel data estimation using the EU-15 countries data observed from 1995 to 2010. The elasticities of CO2 emissions are estimated, in order to evaluate the effectiveness of each parameter. The findings show that the effects of a negative climate change could be mitigated by governance-related parameters instead of economic development. |
| Keywords: | renewable energy, technological innovation, environmental tax, carbon emission, economic growth |
| JEL: | D62 H23 N50 O13 O14 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7989&r=env |
| By: | Jussi Lintunen (Finnish Forest Research Institute, Finland); Jussi Uusivuori (Finnish Forest Research Institute, Finland) |
| Abstract: | First-best optimal forest sector carbon policy is examined. Using a comprehensive forest sector model with a detailed carbon cycle section we show that the renewability and carbon neutrality arguments do not warrant emission free treatment of forest bioenergy. However, under the biomass stock change carbon accounting convention followed by UNFCCC and IPCC, the forest owners pay for the roundwood emissions and, to avoid double counting, the use of roundwood is treated as emission free. The bioenergy from harvest residues cannot be treated as emission free either. Their emission factors are determined through the decay time-scales specific to residue fractions and discount rate used in welfare assessment. In addition, we show that an optimal policy subsidizes the production of wood products sequestering carbon. The relative magnitude of the subsidy is based on the fraction of the carbon stored, the lifetime of the products and the discount rate. Correspondingly, the carbon removals by biomass growth are subsidized and the harvest residue generation taxed. Further, we show that the supply side policies are independent of final use of harvested timber. Numerical solution of the model shows that, although the use of wood is not emission free, it is optimal to increase the use of wood, possibly also in the energy sector. Before the wood use can be increased, the forest biomass has to be increased. This initial carbon sink speeds up the convergence to the lower steady-state atmospheric carbon stock. |
| Keywords: | Optimal Policy, Forest Carbon, Effective Emission Factor, Age-Structured Forest |
| JEL: | Q23 Q43 Q50 Q54 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2014.13&r=env |
| By: | Moon, Jin-Young; Apland, Jeffrey; Folle, Solomon; Mulla, David |
| Keywords: | Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:umaesp:164139&r=env |
| By: | Scott Barrett; Astrid Dannenberg |
| Abstract: | According to the Framework Convention on Climate Change, global collective action is needed to stabilize “greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous [our emphasis] anthropogenic interference with the climate system.” The Framework Convention thus implies that, on the far side of some critical concentration level, climate change will be “dangerous,” while on the near side of the threshold, climate change will be “safe” (though perhaps still undesirable). Rather than be linear and smooth, the Framework Convention warns that climate change may be “abrupt and catastrophic.” |
| Keywords: | climate change, prisoners’ dilemma, catastrophe, negotiations, cooperation, uncertainty, experimental economics |
| JEL: | C72 F51 H41 H87 Q54 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_4573&r=env |
| By: | Reid Ewing; Harry W. Richardson; Keith Bartholomew; Arthur C. Nelson; Chang-Hee Christine Bae |
| Abstract: | This paper examines the relative merits of compact cities or urban sprawl (suburban settlement patterns) as a spatial solution to environmental problems (such as climate control), automobile dependence, economic development, infrastructure costs and the quality of urban life. |
| Keywords: | compact cities, sprawl, vehicle miles traveled, carbon emissions, infrastructure costs, residential preferences, commuting times |
| JEL: | R14 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_4571&r=env |
| By: | Xin Li; Borghan Narajabad; Ted Temzelides |
| Abstract: | We study a dynamic stochastic general equilibrium model where agents are concerned about model uncertainty regarding climate change. An externality from greenhouse gas emissions adversely affects the economy’s capital stock. We assume that the mapping from climate change to damages is subject to uncertainty, and we adapt and use techniques from robust control theory in order to study efficiency and optimal policy. We obtain a sharp analytical solution for the implied environmental externality, and we characterize dynamic optimal taxation. A small increase in the concern about model uncertainty can cause a significant drop in optimal energy extraction. The optimal tax which restores the social optimal allocation is Pigouvian. Under more general assumptions, we develop a recursive method and solve the model computationally. We find that the introduction of uncertainty matters qualitatively and quantitatively. We study optimal output growth in the presence and in the absence of concerns about uncertainty and find that these can lead to substantially different conclusions. |
| JEL: | N10 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_4562&r=env |
| By: | Silvester van Koten |
| Abstract: | Cap-and-trade programs, such as the EU carbon Emission Trading Scheme, are currently the most prominent market-based method used to reduce carbon emissions. Cap-and-trade programs are, on theoretical grounds, considered to be a cost-efficient method. Experimental evidence, however, shows that experimental subjects make highly inefficient abatement choices and that permit allocation methods (allocating permits for free or against payment) bias subjects to too much or too little abatement. The experimental evidence thus suggests that cap-and-trade programs may in practice be more costly than theory predicts. This study, however, challenges this interpretation and shows that, when they are price takers (as in thick markets) and have ample opportunities for learning, subjects quickly learn to make accurate decisions and that these decisions are not affected by the permit allocation method. |
| Keywords: | abatement; cap-and-trade; experimental economics; emission trading system; carbon permits; experience effects; |
| JEL: | C91 D62 Q54 Q55 Q58 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:cer:papers:wp503&r=env |
| By: | Taran Fæhn; Elisabeth Thuestad Isaksen (Statistics Norway) |
| Abstract: | Publicly announced GHG mitigation targets and emissions pricing strategies by individual governments may suffer from inherent commitment problems. When emission prices are perceived as short-lived, socially cost-effective upfront investment in climate technologies may be hampered. This paper compares the social abatement cost of a uniform GHG pricing system with two policy options for overcoming such regulatory uncertainty: one with a state guarantee scheme whereby the regulatory risk is borne by the government and one which combines emissions pricing with subsidies for upfront climate technology investments. A technology-rich CGE model is applied that accounts for abatement both within and beyond existing technologies. Our findings suggest a tripling of abatement costs if domestic climate policies fail to stimulate investment in new technological solutions. Since the cost of funding investment subsidies is found to be small, the subsidy scheme performs almost as well as the guarantee scheme. |
| Keywords: | Abatement costs; Climate technologies; Credible commitment; Computable general equilibrium model; Technological change; Technological diffusion; Hybrid modelling |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:768&r=env |
| By: | Yahya F. Anouti (Division of Economics and Business, Colorado School of Mines); Carol A. Dahl (Division of Economics and Business, Colorado School of Mines) |
| Abstract: | Today, a confluence of factors, such as growing concerns about associated consumption externalities and socioeconomic pressures, is building the momentum towards reducing fossil fuel consumption for road transport and rationalizing prices to reflect direct, indirect and externality costs. While limited country specific work has been done, considering optimal transport fuel prices, (e.g. Parry 2012), we have found no attempts to do so with the breadth and scope of our analysis. Thus in this paper, we make three main contributions. First, we survey policies aimed at reducing transport fuel consumption. Out of these policies, we chose fiscal instruments for our extensive quantitative analysis carried out in a supply and demand framework for 123 countries. Second, we quantify the rationalized cost of transport fuels to reflect the direct costs (production), indirect costs (road maintenance), and negative externalities (climate change, local pollutants, traffic accidents and congestion). Finally, we measure the change in demand, environmental emissions, government revenues and welfare induced by successively phasing in our three cost categories. By rationalizing prices, we estimate that total demand for gasoline could be reduced by 8.5 percent and that of diesel by 5.7 percent. This would lead to not only reduction in associated negative externalities, but also generate an estimated $400 billion in revenues to governments. |
| Keywords: | transport policy, energy demand, subsidy, externalities, gasoline, diesel |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:mns:wpaper:wp201401&r=env |
| By: | Kimberly Burnett (UHERO, University of Hawaii at Manoa); Christopher A. Wada (UHERO, University of Hawaii at Manoa) |
| Abstract: | Demand for water will continue to increase as per capita income rises and the population grows, and climate change can exacerbate the problem through changes in precipitation patterns and quantities, evapotranspiration, and land cover—all of which directly or indirectly affect the amount of water that ultimately infiltrates back into groundwater aquifers. We develop a dynamic management framework that incorporates alternative climate-change (and hence, recharge) scenarios and apply it to the Pearl Harbor aquifer system on O‘ahu, Hawai‘i. By calculating the net present value of water for a variety of plausible climate scenarios, we are able to estimate the indirect value of groundwater recharge that would be generated by watershed conservation activities. Enhancing recharge increases welfare by lowering the scarcity value of water in both the near term and the future, as well as delaying the need for costly alternatives such as desalination. For a reasonable range of parameter values, we find that the present value gain of maintaining recharge ranges from 31.1milliontoover1.5 billion. |
| Keywords: | Groundwater management, Climate change adaptation, Watershed conservation |
| JEL: | Q25 Q54 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:hae:wpaper:2014-3&r=env |
| By: | Brigitte Knopf (Potsdam Institute for Climate Impact Research (PIK)); Bjørn Bakken (SINTEF Energy Research); Samuel Carrara (Fondazione Eni Enrico Mattei and Euro-Mediterranean Center on Climate Change); Amit Kanudia (KanORS-EMR); Ilkka Keppo (University College London); Tiina Koljonen (VTT Technical Research Centre of Finland); Silvana Mima (PACTE-EDDEN, CNRS, Université Grenoble Alpes); Eva Schmid (Potsdam Institute for Climate Impact Research (PIK)); Detlef van Vuuren (PBL Netherlands Environmental Assessment Agency and Utrecht University, Department of Geosciences) |
| Abstract: | The Energy Modeling Forum 28 (EMF28) performed a large-scale model comparison exercise to illustrate different technology pathways for cutting European greenhouse gas emissions by 80% by 2050. Focusing on selected countries (France, Germany, Italy, Sweden and UK), this paper first analyses climate and energy policy objectives and debates in the respective countries. It then compares EMF28 model results to the short-term projections of the National Renewable Energy Action Plans (NREAPs) and the long-term transformation pathway given in the European Commission’s “Energy Roadmap 2050”. It concludes that there is sufficient agreement with the NREAPs and national policies to accept the model results as conceivable scenarios. The scenarios suggest that in the future a variety of different national energy mixes will continue to reflect the different resource bases and preferences of individual Member States. In order to ensure a cost-efficient transformation, it is important to improve coordination between Member State policies and those at EU level. |
| Keywords: | European Climate and Energy Policy, National Renewable Action Plans (Nreaps), Environmental Federalism, Mitigation Scenarios |
| JEL: | Q2 Q4 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2014.14&r=env |
| By: | Brigitte Knopf (Potsdam Institute for Climate Impact Research (PIK)); Yen-Heng Henry Chen (Massachusetts Institute of Technology (MIT), Joint Program on the Science and Policy of Global Change); Enrica De Cian (Fondazione Eni Enrico Mattei and Euro-Mediterranean Center on Climate Change); Hannah Förster (Öko-Institut); Amit Kanudia (KanORS-EMR); Ioanna Karkatsouli (Massachusetts Institute of Technology (MIT), Joint Program on the Science and Policy of Global Change); Ilkka Keppo (University College London); Tiina Koljonen (VTT Technical Research Centre of Finland); Katja Schumacher (Öko-Institut); Detlef van Vuuren (PBL Netherlands Environmental Assessment Agency and Utrecht University, Department of Geosciences) |
| Abstract: | The Energy Modeling Forum 28 (EMF28) study systematically explores the energy system transition required to meet the European goal of reducing greenhouse gas (GHG) emissions by 80% by 2050. The 80% scenario is compared to a reference case that aims to achieve a 40% GHG reduction target. The paper investigates mitigation strategies beyond 2020 and the interplay between different decarbonization options. The models present different technology pathways for the decarbonization of Europe, but a common finding across the scenarios and models is the prominent role of energy efficiency and renewable energy sources. In particular, wind power and bioenergy increase considerably beyond current deployment levels. Up to 2030, the transformation strategies are similar across all models and for both levels of emission reduction. However, mitigation becomes more challenging after 2040. With some exceptions, our analysis agrees with the main findings of the “Energy Roadmap 2050” presented by the European Commission. |
| Keywords: | European Decarbonisation, Mitigation Scenarios, Model Comparison, Climate Change, EU Energy Roadmap 2050 |
| JEL: | Q2 Q4 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2014.15&r=env |
| By: | Moon, Jin-Young; Apland, Jeffrey; Folle, Solomon; Mulla, David |
| Abstract: | National policy supports the production of renewable energy from cellulosic feedstocks such as corn stover and switchgrass. These feedstocks have contrasting impacts on water quality. In this study, the regional supply response for cellulosic biofuel from these two feedstocks is estimated for the Le Sueur Watershed in South-Central Minnesota. The impacts of the resulting agricultural production activities on water quality in this northern corn belt watershed are also estimated. The Le Sueur River is a tributary of the Minnesota River, which in turn feeds into the Mississippi. The analysis is conducted with a multi-region, endogenous supply, mathematical programming model of the agriculture sector in the watershed. A unique aspect of the analysis is the spatial detail used in the production model. Results from a simulation analysis conducted with the Soil Water Assessment Tool (SWAT) model are used in the economic model to simulate the effects of the feedstock supply response on water quality in the Le Sueur. Sediment and nutrient losses from corn stover production make switchgrass more promising on environmental grounds, but the relatively high cost of production causes switchgrass to cover only a small part of crop land if farmers have unrestricted choice about how to supply cellulosic feedstocks. |
| Keywords: | Biofuel, Cellulosic Feedstock, Water Quality, Watershed, Mathematical Programming Sector Models, Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:umaesp:164042&r=env |
| By: | Fabrizio Antonioli (Dipartimento di Economia Istituzioni Territorio, Facoltà di Economia, Università degli Studi di Ferrara.); Simone Borghesi (Università degli Studi di Siena, Facoltà di Scienze Politiche.); Massimiliano Mazzanti (Departiment of Economics, Università di Ferrara (italy).) |
| Abstract: | The adoption and diffusion of environmental innovations (EIs) is crucial to greening the economy and achieving win-win environmental – economic gains. A large and increasing literature has focused on the levers underlying EIs that are external to the firm, such as stakeholder’s pressure and policy pressure. Little attention, however, has been devoted so far to the possible role of local spatial spillovers. The latter can be very relevant since growth depends on strong idiosyncratic regional factors – such asagglomeration economies - that must be integrated with the challenges posed by global markets. To overcome this drawback of the existing literature, we analyse here a rich dataset that covers the innovative activities and economic performances of firms in the Emilia-Romagna Region in Italy, a manufacturing district-rich area. We analyse firms’ performances through a two-step procedure. First, we look at the relevance of spatial levers, namely whether the agglomeration of EIs induces EIs in a given firm. Second, we test whether EIs have significantly increased firms’ economic performances. As to the importance of spatial levers, the role of agglomeration turns out to be fairly local in nature:we find that spillovers are significantly inducing innovation within municipal boundaries, which is coherent with the district-based Marshallian economies of north- eastern Italy. Regarding economic performances, firms' productivity is positively related to EI adoption; in particular,firms that adopt EIs and organizational change show a better economic performance.Our findings suggest that EIscanbe a key source of growth for regional systems, particularly when spurred by local spillovers, and an important way outof the ongoing crisis. |
| Keywords: | environmental innovations, firm economic performances, local spillovers, manufacturing, agglomeration |
| JEL: | O38 Q55 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:0414&r=env |
| By: | Kristine Grimsrud; Knut Einar Rosendahl; Halvor Briseid Storrøsten; Marina Tsygankova |
| Abstract: | In a non-renewable resource market with imperfect competition, both the resource rent and current prices influence a large resource owner’s optimal supply. New information regarding future market conditions that affect the resource rent will consequently impact current supply. Bleaker demand prospects tend to accelerate resource extraction. A more pessimistic outlook for future demand may, however, slow down the early resource extraction of producers with sufficiently large resource stocks and thus more limited resource rent, because the supply from these producers is driven more by current market considerations than by changes in the resource rent. As producers with relatively smaller resource stocks accelerate their supply in response to bleaker demand prospects, producers with sufficiently large resource stocks will reduce their current supply. A numerical model of the European gas market illustrates that the effect of the shale gas revolution is an accelerated supply by most gas producers, but a reduced supply by Russia who loses market shares even before the additional gas enters the market. |
| Keywords: | resource extraction, Cournot competition, European gas market |
| JEL: | Q31 Q33 Q42 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_4579&r=env |
| By: | O.A. Carboni; P. Russu |
| Abstract: | Economic and environmental efficiency has being receiving growing attention among researchers. In general terms, this concept is related to the capability of the economic systems to employ natural resources efficiently, so as to increase economic and human wealth. This clearly implies that both the economic and ecological aspects of decisions ought to be considered. Bearing this in mind, this paper considers economic and ecological performance together, by applying data envelopment analysis (DEA) and the Malmquist productivity index (MPI) to investigating the efficiency of the 20 Italian regions from 2004 to 2011. The results reveal that the northern regions have been more efficient than the southern ones, highlighting the strong geographical differences between the two. Furthemore this paper uses the Grey System Theory to forecast regional economic and environmental efficiency. The results of the forecasting analysis show that the North-south duality remains strong and will possibly increase since the regions in the south get worse in term of environmental and economic efficiency. |
| Keywords: | panel data, forecasting, Data envelopment analysis (DEA), Malmquist productivity index (MPI), Grey system theory |
| JEL: | E17 C61 C23 C14 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:cns:cnscwp:201401&r=env |
| By: | Geng, Viktoria; Herstatt, Cornelius |
| Abstract: | In the light of depleting natural resources and growing awareness for responsible consumption, Cradle-to-Cradle (C2C) has emerged as one of the key concepts redefining product characteristics and assigning a new role to environmental responsibility of companies. It reframes the general goal of reducing negative externalities in a more positive way seeking the design of healthy products made out of benign materials that circulate in an endless flow of resources after the use phase. The importance of the relatively new paradigm, coined by the chemist Braungart and architect McDonough, opens up new opportunities for companies and is already well established in practice. Considering the limited coverage of the topic in academia, especially in the context of innovation management, we aim to investigate the potential intersections between C2C and the Fuzzy Front End theory. Based on a case study research and a descriptive analysis of a dataset containing C2C certified products, we apply FFE success factors to C2C and derive enablers for successful C2C implementation. -- |
| Keywords: | cradle-to-cradle,eco-effectiveness,fuzzy front end |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:tuhtim:79&r=env |
| By: | Andreas Blöchl; Gebhard Flaig |
| Abstract: | In this paper we use the Hodrick-Prescott filter for analysing global temperature data. We are especially concerned with a reliable estimation of the trend component at the end of the data sample. To this end we employ time-varying values for the penalization parameter. The optimal values are derived by a comparison with an ideal filter. The method is applied to temperature data for the northern hemisphere from 1850 to 2012. The main result is that for the optimal specification of the flexible penalization the trend component of temperature is still increasing, possibly with a somewhat lower pace. |
| Keywords: | climate change, global warming, trend, Hodrick-Prescott filter, flexible penalization |
| JEL: | Q54 C22 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_4577&r=env |
| By: | Anna Alberini (AREC, University of Maryland, Centre for Energy Policy and Economics (CEPE), ETH Zürich, and Fondazione Eni Enrico Mattei); Markus Bareit (CEPE, ETH Zürich); Massimo Filippini (CEPE, ETH Zürich, and University of Lugano) |
| Abstract: | To correct market failures due to the presence of negative externalities associated with energy consumption, governments have adopted a variety of policies, including taxes, subsidies, regulations and standards, and information-based policies. For example, labels that clearly convey energy consumption rates, associated costs, and emissions of conventional pollutants and CO2, have been devised and used in the last two decades in several countries. In 2003, Switzerland introduced a system of fuel economy labels, based on grades ranging from A to G, where is A best and G is worst, to assist consumers in making decisions that improve the fleet’s fuel economy and lower emissions. We use a dataset documenting all passenger cars approved for sale in Switzerland each year from 2000 to 2011 to answer three key research questions. First, what is the willingness to pay for fuel economy? Second, do Swiss drivers—or Swiss auto importers on their behalf—appear to do a one-to-one tradeoff between car purchase price and savings on fuel costs over the lifetime of the car? Third, does the label have an additional effect on price, all else the same, above and beyond that of fuel efficiency alone? Hedonic pricing regressions that exploit the variation in fuel economy across make-models, and over time within make-models, suggest that there is a (modest) capitalization of fuel economy into car prices. The diesel premium, however, exceeds the future fuel cost savings made possible by diesel cars, even at zero discount rates. An alternate calculation suggests that the fuel economy premium is consistent with a very low discount rate (2.5%). We use a sharp regression discontinuity design (RDD) based on the mechanism used by the Swiss Federal Office of Energy to assign cars to the fuel economy label to see if the label has an independent effect on price, above and beyond that of the fuel economy. The RDD approach estimates the effect to be 6-11%. To broaden the fuel economy range over which we assess the effect of the A label, we also deploy matching estimators, and find that the effect of an A label on car price is approximately 5%. |
| Keywords: | Fuel Economy, CO2 Emissions, Passenger Vehicles, Hedonic Pricing Model, Matching Estimator, Regression Discontinuity Design, Fuel Efficiency Premium, Discounted Future Fuel Costs |
| JEL: | Q48 Q53 Q54 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2014.16&r=env |
| By: | Robin Boadway; Michael Keen |
| Abstract: | A fundamental issues in designing any fiscal regime for non-renewable resources is the balance between rent taxes and royalties. This paper reviews the core issues that arise, in terms of both efficient rent extraction and correcting various market failures. Issues of asymmetric information, for instance, can rationalize using both instruments. The paper also shows that, even though they effectively involve the choice of distinct parameters at several dates, rent taxes are not subject to the time consistency problem that is central to the extractive industries, but royalties are (although time consistent royalty policy is efficient conditional on initial resource stocks). |
| Keywords: | rent tax, royalties, resource taxation |
| JEL: | H21 H25 Q30 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_4568&r=env |
| By: | Anand, Mukesh (National Institute of Public Finance and Policy) |
| Abstract: | A hornet's nest could be an apt simile for fossil fuel prices in India. Over years a policy maze has evolved around it, with sharply diverging influence on disparate constituencies. We estimate the increase in total cost of farming as a multiple of direct input costs of fossil fuels in farming. Over the period between 1990-1 and 2010-1, direct use of fossil fuels on farms has risen and there is also increasing indirect use of fossil fuels for non-energy purposes. Consequently, for Indian agriculture both energy intensity and fossil fuel intensity are rising. But, these are declining for the aggregate Indian economy. Thus, revision of fossil fuel prices has acquired greater significance for Indian agriculture than for the remainder of the economy. We validate these findings by utilising an input-output table for the Indian economy to assess the impact of fossil fuel price increase. We assess that fossil fuels sector has strong forward linkages and increase in its price has a steep inflationary impact. Using a three-sector I-O model for Indian economy, we estimate that a 10 per cent increase in fossil fuel price could cause, ceteris paribus, the wholesale price index (WPI) to rise about 4.3 percentage points with 0.7 percentage points being contributed by the farm sector alone. |
| Keywords: | Agriculture ; Fossil-fuel intensity ; Inflation ; Input-output analysis |
| JEL: | C67 E31 Q12 Q43 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:npf:wpaper:14/132&r=env |
| By: | Cialani, Catia (Department of Economics, Umeå School of Business and Economics) |
| Abstract: | This thesis consists of a summary and four self-contained papers. Paper [I] Following the 1987 report by The World Commission on Environment and Development, the genuine saving has come to play a key role in the context of sustainable development, and the World Bank regularly publishes numbers for genuine saving on a national basis. However, these numbers are typically calculated as if the tax system is non-distortionary. This paper presents an analogue to genuine saving in a second best economy, where the government raises revenue by means of distortionary taxation. We show how the social cost of public debt, which depends on the marginal excess burden, ought to be reflected in the genuine saving. We also illustrate by presenting calculations for Greece, Japan, Portugal, U.K., U.S. and OECD average, showing that the numbers published by the World Bank are likely to be biased and may even give incorrect information as to whether the economy is locally sustainable. Paper [II] This paper examines the relationships among per capita CO2 emissions, per capita GDP and international trade based on panel data spanning the period 1960-2008 for 150 countries. A distinction is also made between OECD and Non-OECD countries to capture the differences of this relationship between developed and developing economies. We apply panel unit root and cointegration tests, and estimate a panel error correction model. The results from the error correction model suggest that there are long-term relationships between the variables for the whole sample and for Non-OECD countries. Finally, Granger causality tests show that there is bidirectional short-term causality between per capita GDP and international trade for the whole sample and between per capita GDP and CO2 emissions for OECD countries. Paper [III] Fundamental questions in economics are why some regions are richer than others, why their growth rates differ, whether their growth rates tend to converge, and what key factors contribute to explain economic growth. This paper deals with the average income growth, net migration, and changes in unemployment rates at the municipal level in Sweden. The aim is to explore in depth the effects of possible underlying determinants with a particular focus on local policy variables. The analysis is based on a three-equation model. Our results show, among other things, that increases in the local public expenditure and income taxe rate have negative effects on subsequent income income growth. In addition, the results show conditional convergence, i.e. that the average income among the municipal residents tends to grow more rapidly in relatively poor local jurisdictions than in initially “richer” jurisdictions, conditional on the other explanatory variables. Paper [IV] This paper explores the relationship between income growth and income inequality using data at the municipal level in Sweden for the period 1992-2007. We estimate a fixed effects panel data growth model, where the within-municipality income inequality is one of the explanatory variables. Different inequality measures (Gini coefficient, top income shares, and measures of inequality in the lower and upper part of the income distribution) are examined. We find a positive and significant relationship between income growth and income inequality measured as the Gini coefficient and top income shares, respectively. In addition, while inequality in the upper part of the income distribution is positively associated with the income growth rate, inequality in the lower part of the income distribution seems to be negatively related to the income growth. Our findings also suggest that increased income inequality enhances growth more in municipalities with a high level of average income than in municipalities with a low level of average income. |
| Keywords: | Genuine saving; welfare change; taxation; per capita GDP; per capita CO2; international trade; net migration; unemployment; growth; inequality |
| JEL: | C33 D31 D60 D63 E24 H21 I31 O47 Q28 Q48 Q56 R11 R23 |
| Date: | 2014–02–26 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:umnees:0875&r=env |
| By: | Marie-Eve Yergeau (GREDI, Université de Sherbrooke; LAMETA, Université Montpellier I) |
| Abstract: | La mise en place de zones protégées est une pratique répandue pour atteindre des objectifs de conservation environnementale. Elle est toutefois critiquée sous prétexte qu'elle restreint l'exploitation des ressources naturelles et le développement agricole, en particulier dans les régions les plus pauvres. Aussi, le développement de l'écotourisme dans les zones protégées apparait comme une utilisation alternative de la terre permettant de concilier les objectifs de conservation environnementale et développement économique. Dans cet article, nous mesurons la force de la relation entre protection du territoire, écotourisme et bien-être, au Népal. D'abord, nous examinons la nature et la force de la relation entre conservation et bien-être, et celles entre écotourisme et bien-être. Ensuite, nous vérifions si le développement écotouristique à l'intérieur des zones protégées affecte la force de la relation entre conservation et bien-être. Nous utilisons la méthode de la régression PLS, permettant de corriger le problème de multicolinéarité retrouvé dans notre modèle de régression. Nous trouvons une relation positive entre conservation et bien-être, de même qu'entre écotourisme et bien-être. Les résultats montrent également que la force de la relation entre conservation et bien-être s'amplifie dans les zones où l'écotourisme se développe. |
| Keywords: | Bien-être, conservation, écotourisme, régression PLS, Népal |
| JEL: | I31 Q26 O13 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:shr:wpaper:14-01&r=env |
| By: | Fernandez-Cornejo, Jorge; Livingston, Michael; Mitchell, Lorraine; Wechsler, Seth |
| Abstract: | More than 15 years after their first successful commercial introduction in the United States, genetically engineered (GE) seeds have been widely adopted by U.S. corn, soybean, and cotton farmers. Still, some questions persist regarding the potential benefits and risks of GE crops. The report finds that, although the pace of research and development (measured by the number of USDA-approved field tests) peaked in 2002, other measures show that biotech firms continue to develop new GE seed varieties at a rapid pace. Also, U.S. farmers continue to adopt GE seeds at a robust rate, and seed varieties with multiple (stacked) traits have increased at a very rapid rate. Insecticide use has decreased with the adoption of insect-resistant crops, and herbicide-tolerant crops have enabled the substitution of glyphosate for more toxic and persistent herbicides. However, overreliance on glyphosate and a reduction in the diversity of weed management practices have contributed to the evolution of glyphosate resistance in some weed species. |
| Keywords: | Genetically engineered crops, agricultural biotechnology, seed industry, research and development, adoption, crop yields, pesticide use, corn, soybeans, cotton, Agribusiness, Agricultural and Food Policy, Crop Production/Industries, Environmental Economics and Policy, Farm Management, Production Economics, |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uersrr:164263&r=env |
| By: | Bruckner, Tim A. (University of California, Irvine); van den Berg, Gerard J. (University of Mannheim); Smith, Kirk R. (University of California, Berkeley); Catalano, Ralph A. (University of California, Berkeley) |
| Abstract: | For all climatic regions, mortality due to cold exceeds mortality due to heat. We examine whether cold-related mortality in adulthood varies positively with unusually benign ambient temperature during gestation, using data on over 13,500 Swedes from the Uppsala Birth Cohort Study born in 1915-1929 and followed until 2003. We link daily thermometer temperatures in Uppsala (1914 to 2002) to subjects, from their estimated date of conception onwards. We estimate survival models with time-varying explanatory variables, focusing on the two leading causes of cold-related death in adulthood: ischaemic heart disease (IHD) and stroke. An increase in the prevalence of warm temperatures during gestation leads to a significantly higher rate of mortality due to cold-related IHD. However, we do not find such a relation for cold-related stroke mortality. Additional analyses show that birthweight percentile or gestational age do not mediate discovered findings. The IHD results indicate that ambient temperature during gestation – independent of birth month – modifies the relation between cold and adult mortality. |
| Keywords: | health, climate, cerebrovascular disorders, cold spells, fetal development, ischaemic heart disease, temperature regulation, migration |
| JEL: | I12 Q54 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7986&r=env |