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on Environmental Economics |
| By: | Mads Greaker (Statistics Norway); Michael Hoel (University of Oslo); Knut Einar Rosendahl (Statistics Norway) |
| Abstract: | Recent literature on biofuels has questioned whether biofuels policies are likely to reduce the negative effects of climate change. In this paper we make two contributions to the literature. First, we study the market effects of a renewable fuel standard in a dynamic model taking into account that oil is a non-renewable resource. Second, we model emissions from land use change explicitly when we evaluate the climate effects of the renewable fuel standard. We find that global extraction of oil is postponed as a consequence of the renewable fuel standard. Thus, if emissions from biofuels are negligible, the standard will have beneficial climate effects. Furthermore, we find that the standard also tends to reduce total fuel (i.e., oil plus biofuels) consumption initially. Hence, even if emissions from biofuels are non-negligible, a renewable fuel standard may still reduce climate costs. In fact our simulations show that even for biofuels that are almost as emissions-intensive as oil, a renewable fuel standard has beneficial climate effects. |
| Keywords: | Blending Mandate, Renewable Fuel Standard, Biofuels, Climate Costs |
| JEL: | Q27 Q41 Q54 |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2014.32&r=env |
| By: | Etienne Billette de Villemeur; Justin Leroux |
| Abstract: | We argue for the creation of a carbon liabilities market to address climate change. Each period, countries would be made liable for their share of responsibility in current climate damage. Because liabilities could be traded like financial debt, robustness to strategic manipulations and efficiency ensue. Moreover, this decentralizes the choice of the rate by which countries discount future benefits and damage. Rather than being based on an expected discounted sum of future marginal damage (as with a carbon tax or tradable emission permits) our proposal relies only on observed realized damage and on the well-documented emission history of countries. |
| Keywords: | Carbon Liabilities, Climate Policy, Market Instruments, |
| JEL: | Q54 H23 |
| Date: | 2014–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2014s-20&r=env |
| By: | Yasunori Ouchida (Department of Economics, Hiroshima University); Daisaku Goto (Graduate School for International Development and Cooperation Hiroshima University) |
| Abstract: | This paper presents an examination of the socially efficient formation of environmental R&D in Cournot duopoly in a setting where a regulator has no precommitment ability for an emission tax. The results reveal that if the environmental damage is slight, alternatively, given severe environmental damage and large inefficiency in environmental R&D costs, then environmental research joint venture (ERJV) cartelization is socially efficient. However, if environmental damage is severe, and if a firm’s R&D costs are limited, then, in stark contrast to results of previous studies, environmental R&D competition is socially more efficient than the other three scenarios (i.e., environmental R&D cartelization, ERJV competition, and ERJV cartelization), although R&D competition is the case of “NO information sharing and NO R&D coordination.” |
| Keywords: | Environmental Research Joint Venture, Environmental R&D, Time-consistent Emission Tax, Competition Policy, Cournot Duopoly |
| JEL: | O32 L13 Q55 Q58 |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2014.35&r=env |
| By: | Bernhard Klaus Michel |
| Abstract: | Over the last couple of decades, trade liberalisation has progressed and environmental regulations have become more stringent, in particular regarding emissions of air pollution. This has raised the fear in developed countries that emission-intensive activities are increasingly carried out abroad. This paper develops an approach for testing whether emission-intensive industries have greater shares of imported intermediate materials. The test is applied to the Belgian manufacturing sector for the years 1995-2007. Emissions of three types of air pollutants are analysed: greenhouse gases, acidifying gases and tropospheric precursor gases. The results provide evidence that industries with a high intensity in acidifying gas emissions (SO2, NOX and NH3) tend to import a greater share of intermediate materials. This is likely to be linked to the stricter enforcement of regulations for air quality, which act upon acidifying gases. There is no such evidence in the results for emissions of tropospheric precursor gases and in particular of greenhouse gases. Regarding the latter, despite stringent regulations, enforcement appears to be less strict. |
| Keywords: | Offshoring |
| JEL: | F14 F18 Q53 Q56 |
| Date: | 2013–10–11 |
| URL: | http://d.repec.org/n?u=RePEc:fpb:wpaper:1312&r=env |
| By: | Arimura, Toshihide; Iguchi, Hakaru; Michida, Etsuyo |
| Abstract: | Voluntary environmental actions, such as the adoption of ISO 14001, are gaining increasing attention in developing countries. This study examines the mechanism of ISO 14001 diffusion in a developing economy on the basis of a unique corporate survey of manufacturing sectors in Malaysia. Product-related environmental regulations, such as REACH, are contributing to this diffusion indirectly by promoting quality control standards such as ISO 9001. The importance of foreign direct investment and global value chains for ISO 14001 diffusion is also confirmed. |
| Keywords: | Malaysia, Environmental protection, Environmental policy, Industrial standards, International trade, PRERs (product-related environmental regulations), REACH, RoHS, ISO 14001, ISO 9001, Global value chain |
| JEL: | F18 Q56 |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:jet:dpaper:dpaper454&r=env |
| By: | Mohamed Arouri; Muhammad Shahbaz; Rattapon Onchang; Faridul Islam; Frédéric Teulon |
| Abstract: | The study is aim to explore the existence of environmental Kuznets curve (EKC) in case of Thailand over the period of 1971-2010. The EKC relationship posits that as economy grows, measured by per capita income, at the initial stage energy pollutants increase; but starts falling after a certain threshold income has been achieved. The postulated relation produces an inverted U-curve and has been empirically verified for many nations. The paper implements the ARDL bounds testing approach to cointegration in the presence of structural break for a long run relationship among the series; and the error correction mechanism for the short run dynamics. The results confirm cointegration among economic growth, energy consumption, trade openness, urbanization, and energy pollutants and vindicate the presence of an EKC for Thailand. Also, energy consumption and trade openness add to energy emissions while urbanization lowers it. This study provides new insights for policymakers looking for sustainable economic growth and clean environment through a comprehensive economic and environmental policy. |
| Keywords: | Economic Growth, Energy Consumption, Environmental Kuznets Curve |
| JEL: | O13 Q25 Q53 |
| Date: | 2014–04–10 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-204&r=env |
| By: | Enrica De Cian (Fondazione Eni Enrico Mattei (FEEM), Italy and Euro-Mediterranean Center on Climate Change (CMCC), Italy); Ilkka Keppo (University College London, UCL Energy Institute, UK); Johannes Bollen (CPB, Den Haag, Netherlands); Samuel Carrara (Fondazione Eni Enrico Mattei (FEEM), Italy and Euro-Mediterranean Center on Climate Change (CMCC), Italy); Hannah Förster (Öko-Institut, Germany); Michael Hübler (Centre for European Economic Research (ZEW), Mannheim, Germany); Amit Kanudia (KanORS-EMR, New Delhi, India); Sergey Paltsev (Massachusetts Institute of Technology (MIT), Joint Program on the Science and Policy of Global Change, US); Ronald Sands (U.S. Department of Agriculture, Economic Research Service, USA); Katja Schumacher (Öko-Institut, Germany) |
| Abstract: | This paper examines how changes in an international climate regime would affect the European decarbonization strategy and costs through the mechanisms of trade, technology, and innovation. We present the results from the Energy Modeling Forum (EMF) model comparison study on European climate policy to 2050. Moving from a no-policy scenario to an existing-policies case reduces all energy imports, on average. Introducing a more stringent climate policy target for the EU only leads to slightly greater global emission reductions. Consumers and producers in Europe bear most of the additional burden and inevitably face some economic losses. More ambitious mitigation action outside Europe, especially when paired with a well-operating global carbon market, could reduce the burden for Europe significantly. Because of global learning, the costs of wind and especially solar-PV in Europe would decline below the levels observed in the existing-policy case and increased R&D spending outside the EU would leverage EU R&D investments as well. |
| Keywords: | Climate Change, Stabilization Policy, International Participation |
| JEL: | Q5 Q54 |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2014.30&r=env |
| By: | Wenli Cheng; Dingsheng Zhang; CEMA |
| Abstract: | This paper develops a set of three models to study the optimal tax-subsidy regime in an economy characterised by two deviations from the perfect competition model – negative externality from pollution by the “dirty” industry, and increasing returns in the “clean” industry. Its main conclusions are: (1) the optimal single pollution tax is higher than the Pigouvian level; (2) a combination of pollution tax and quantity subsidy increases consumer welfare at a lower level of pollution tax; (3) the optimal pollution tax can be further lowered and consumer welfare further increased if the quantity subsidy is supplemented by a lump-sum subsidy. |
| Keywords: | optimal pollution tax, clean subsidy, increasing returns, monopolistic competition |
| JEL: | H23 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:mos:moswps:2014-11&r=env |
| By: | Valentina Bosetti; Marco Maffezzoli |
| Abstract: | This paper is the first attempt, to the best of our knowledge, to study the impact of a carbon tax by means of a heterogeneous agents model. The objectives of the paper are two: i) To assess how the results of a representative agent model compare to those coming from a model accounting for heterogeneity across agents when evaluating aggregate economic and environmental impacts of a carbon tax; ii) To assess the distributional implications of a carbon tax and how they can be mitigated through different recycling schemes. We find that heterogeneous agents models may deliver different results from those derived using a representative agent model, the main tool used to guide policy making so far. In particular, we find evidence of a double dividend for several recycling schemes and carbon taxes as high as 20% of the energy price. In addition, we find the potential for redistributive channels related to carbon policies that can only be appreciated applying this type of modeling. JEL codes: Q58, Q54, E2. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:igi:igierp:513&r=env |
| By: | Wenli Cheng; Dingsheng Zhang; CEMA |
| Abstract: | In this note, we introduce increasing returns to Bovenberg and Mooij’s (1994) model as generalised in Fullerton (1997) and use an example to show that (1) even with a distortionary labor tax, the optimal environmental levy is greater than the Pigouvian rate; (2) the difference between tax on the “dirty” good and the “clean” good is also greater than the Pigouvian tax; (3) under certain circumstances, the government can optimally use the environmental levy to both meet its revenue requirement and subsidize the “clean” goods with increasing returns. |
| Keywords: | environmental levies, distortionary taxation, increasing returns |
| JEL: | H23 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:mos:moswps:2014-10&r=env |
| By: | Hannah Förster (Öko-Institut e.V., Germany); Katja Schumacher (Öko-Institut e.V., Germany); Enrica De Cian (Fondazione Eni Enrico Mattei (FEEM), Italy and Centro Mediterraneo per i Cambiamenti Climatici (CMCC), Italy); Michael Hübler (Centre for European Economic Research, Mannheim, Germany); Ilkka Keppo (University College London, UCL Energy Institute, UK); Silvana Mima (PACTE-EDDEN-CNRS-UPMF, France); Ronald D. Sands (U.S. Department of Agriculture, Economic Research Service, USA) |
| Abstract: | Energy efficiency and decarbonization are important elements of climate change mitigation. We draw on European mitigation scenarios from the EMF28 modeling exercise to decompose economy-wide and sectoral emissions into their main components. We utilize the Logarithmic Mean Divisia Index (LMDI) to gain insights into five effects: affluence, energy intensity, carbon intensity, conversion efficiency, and structural change. Economy-wide analysis suggests that energy efficiency improvements (including end-use efficiency of economic production and structural change of the economy) determine emission reductions short to medium term while decarbonization becomes more important in the long run. Sectoral analysis suggests that electricity generation holds the largest potential for decarbonization. Mitigation in the transport and energy-intensive sectors is limited by technology availability, forcing output and energy inputs to decline to meet the given mitigation pathways. We conclude that energy efficiency improvements could bridge the time until carbon-free technologies mature, while their quick development remains essential. |
| Keywords: | Decomposition Analysis, Decarbonization, Model Intercomparison |
| JEL: | Q4 Q5 Q51 |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2014.27&r=env |
| By: | Antoine Bommier (Chair for Integrative Risk Management and Economics - ETH Zurich); Bruno Lanz (Center for International Environmental Studies - Graduate Institute Geneva); Stéphane Zuber (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris 1 - Panthéon-Sorbonne, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris) |
| Abstract: | We study the role of alternative intertemporal preference representations in a model of economic growth, stock pollutant and endogenous risk of catastrophic collapse. We contrast the traditional "discounted utility" model, which assumes risk neutrality with respect to intertemporal utility, with a multiplicative choice model that displays risk aversion in that dimension. First, we show that both representations of preferences can rationalize the same "business as usual" economy for a given interest rate and no pollution externality. Second, once we introduce a collapse risk whose hazard rate is a function of the pollution stock, multiplicative preferences recommend a much more stringent policy response. An illustration in the context of climate change indicates that switching to the multiplicative preference representation has a similar effect, in terms of policy recommendations, as scaling up the schedule of the hazard rate by a factor of 100. |
| Keywords: | Environmental policy; climate change; catastrophic risks; risk aversion; discounting |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-00973491&r=env |
| By: | Navarro Arredondo, Alejandro |
| Abstract: | This paper aims to analyze the current processes of international technical cooperation for environmental protection in Mexican municipalities. To meet this objective, the paper is divided into five sections. The first introduces the subject and describes the role that has been playing international technical cooperation in the definition of environmental policy in Latin America. The second provides a review of the literature on globalization and its effects on these cooperative efforts. The third, examines the changes in Mexican municipalities’ cooperation with international agencies that have been established for the implementation of environmental programs. The fourth, through a case study methodology, describes an experience of international technical cooperation in the northeastern state of Tlaxcala, which analyzes the actions of environmental management in Españita and Hueyotlipan municipalities. The inputs of this analysis are from an exercise of environmental policy evaluation. Finally, the fifth section provides a series of reflections and other elements to the analysis. Within these, highlights the finding that the organization of specific local development programs are becoming increasingly remote technical cooperation focused on inputs. Instead, it is taking a new approach based on the specific purpose of cooperation, for the present case is related to environmental management. |
| Keywords: | Technical cooperation, local development, environmental management, sustainability |
| JEL: | F00 |
| Date: | 2014–02–27 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:55200&r=env |
| By: | Marie-Ève Faubert; Bernard Sinclair-Desgagné; Ekaterina Turkina |
| Abstract: | We investigate the main drivers for the construction of new road-noise barriers across states in the United States. The respective influence of costs, the number of metropolitan areas and registered vehicles, state population density, the already built area, and a state’s environmental efforts (as measured by an environmental index) remains qualitatively the same for the overall newly-built area and when only new areas using specific materials are considered. However, history (through the already built area) may foster the use of some materials, which suggests that their deployment is subject to path-dependency; and different environmental indices and states peculiarities matter for different materials, which may indicate regional specificities in landscape and taste or the influence of local industrial lobbies. Some implications for the measurement of environmental stringency and the study of environmental federalism are briefly discussed. Nous examinons les principaux facteurs influençant la construction de murs anti-bruit dans chaque états des États-Unis. L'impact respectif des coûts de construction, du nombre d'immatriculation de voitures et de zones métropolitaines, de la densité de population, de la superficie déjà construite, et de l'activisme environnemental spécifique à chaque état (tel que mesuré par un indice environnemental) reste qualitativement le même, que l'on considère l'ensemble de la nouvelle superficie couverte ou bien seulement celle couverte en utilisant un matériau donné. En revanche, l'histoire (via la superficie déjà construite) peut encourager le recours à certains matériaux, ce qui suggère une forme d'inertie; et différents états et indices environnementaux ont de l'importance pour différents matériaux, ce qui peut s'interpréter comme la manifestation de spécificités régionales ou comme une indication de l'influence de certains lobbies industriels. Nous en tirons des conclusions pour les moyens de mesurer la force des réglementations et lois environnementales et pour l'étude du fédéralisme environnemental. |
| Keywords: | Command-and-control policy implementation, Pollution-abating technology and regulatory compliance, Traffic-noise reduction measures,Environmental federalism, State politics, Implantation de politiques, technologie et conformité environnementale, contrôle du bruit des routes, fédéralisme environnemental |
| Date: | 2014–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2014s-22&r=env |
| By: | Ingmar Schumacher |
| Abstract: | The results in this paper show that the level of aggregation used in a social welfare func- tion matters significantly for policy analysis. Using climate change as an example, it is shown that, under the mild and widely-accepted assumptions of asymmetric climate change impacts and declining marginal utility, an aggregation dilemma may arise that dwarfs most other policy-relevant aspects in the climate change cost-benefit analysis. Estimates based on the RICE-99 model (Nordhaus and Boyer 2000) suggest that aggregation leads to around 26% higher total world emissions than those from a regional model. The backstop energy use would be zero in the model which aggregates consumption in utility, while it would be 1.3% of Gross World Product in a regionally-disaggregated version. In general we observe that richer countries will be required to undertake stronger efforts toward climate policy based on the aggregated utility social welfare function and compared to both the aggregated utility function with Negishi weights and the aggregated consumption function. We propose criteria that may aid in deciding on the level of aggregation one might wish to choose de- pending on both positive and normative criteria. Though the policy recommendations from fully aggregated models like the DICE model are always used as a benchmark for policy making, the results here suggest that this should be done with the reservations raised by the Aggregation Dilemma in mind. |
| Keywords: | Aggregation Dilemma; social welfare function; Integrated Assessment Models; climate policy. |
| JEL: | Q54 Q58 |
| Date: | 2014–04–10 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-224&r=env |
| By: | Aleh Cherp (Central European University and Lund University); Jessica Jewell (International Institute for Applied Systems Analysis and Central European University); Vadim Vinichenko (Central European University); Nico Bauer (Potsdam Institute for Climate Impact Research (PIK)); Enrica De Cian (Fondazione Eni Enrico Mattei and Euro-Mediterranean Center on Climate Change (CMCC)) |
| Abstract: | Energy security is one of the main drivers of energy policies. Understanding energy security implications of long-term scenarios is crucial for informed policy making, especially with respect to transformations of energy systems required to stabilize climate change. This paper evaluates the global energy security under several global energy scenarios, modeled in the REMIND and WITCH integrated assessment models. The paper examines the effects of long-term climate policies on energy security under different assumptions about GDP growth and fossil fuel availability. It uses a systematic energy security assessment framework and a set of global and regional indicators for risks associated with energy trade and resilience associated with diversity of energy options. The analysis shows that climate policies significantly reduce the risks and increase the resilience of energy systems in the first half of the century. Climate policies also make energy supply, energy mix, and energy trade less dependent upon assumptions of fossil resource availability and GDP growth, and thus more predictable than in the baseline scenarios. |
| Keywords: | Energy Security, Energy Scenarios, Long-Term Climate Policies, Fossil Resources Assumptions |
| JEL: | Q4 Q5 Q51 |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2014.29&r=env |
| By: | Katherine Calvin (Joint Global Change Research Institute/PNNL); Shonali Pachauri (Organization International Institute for Applied Systems Analysis/IIASA); Enrica De Cian (Fondazione Eni Enrico Mattei and Euro-Mediterranean Center on Climate Change/CMCC); Ioanna Mouratiadou (Potsdam Institute for Climate Impact Research/PIK) |
| Abstract: | Today Africa is a small emitter, but it has a large and faster-than-average growing population and per capita income that could drive future energy demand and, if unconstrained, emissions. This paper uses a multi-model comparison to characterize the potential future energy development for Continental and Sub-Saharan Africa under different assumptions about population and income. Our results suggest that population and economic growth rates will strongly influence Africa’s future energy use and emissions. We show that affluence is only one face of the medal and the range of future emissions is also contingent on technological and political factors. Higher energy intensity improvements occur when Africa grows faster. In contrast, climate intensity varies less with economic growth and it is mostly driven by climate policy. African emissions could account for between 5% and 20% of global emissions, with Sub-Saharan Africa contributing between 4% and 10% of world emissions in 2100. In all scenarios considered, affluence levels remain low until the middle of the century, suggesting that the population could remain dependent on traditional bioenergy to meet most residential energy needs. Although the share of electricity in final energy, electric capacity and electricity use per capita all rise with income, even by mid-century they do not reach levels observed in developed countries today. |
| Keywords: | African Growth, Global Energy, Emissions |
| JEL: | Q4 Q5 Q51 |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2014.28&r=env |
| By: | Ben Jebli, Mehdi; Ben Youssef, Slim |
| Abstract: | This paper examines the causal relationship between economic growth, combustible renewables and waste consumption, and CO2 emissions for a balanced panel of five North Africa countries during the period 1971-2008. The panel cointegration test results indicate that, in the short-run, there is evidence of unidirectional causality running from CO2 emissions to real GDP, unidirectional causality from combustible renewables and waste consumption to real GDP without feedback, and unidirectional causality from combustible renewables and waste to CO2 emissions. However, there is evidence of no short-run causality between combustible renewables and waste consumption and CO2 emissions. In the long-run, we find that there is evidence of a unidirectional causality running from CO2 emissions and combustible renewables and waste consumption real GDP. The results from panel FMOLS and DOLS estimates show that CO2 emissions is the most significant variable in explaining economic growth in the region which is followed by the consumption of combustible renewables and waste. In the long-run, increases in combustible renewables and waste consumption and emissions lead to increase economic growth. The finding of this paper is that North Africa region can use renewable energy as a substitutable energy to the fossil one and avoid the disaster on atmosphere and stimulate economic growth in the long-run. |
| Keywords: | Combustible renewables and waste consumption; panel cointegration; North Africa. |
| JEL: | C33 Q43 |
| Date: | 2014–04–13 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:55300&r=env |
| By: | Richard Tol (Department of Economics, University of Sussex, Falmer, United Kingdom; Institute for Environmental Studies and Department of Spatial Economic, Vrije Universiteit, Amsterdam, The Netherlands; Tinbergen Institute, Amsterdam, The Netherlands; CESifo, Munich, Germany) |
| Abstract: | I apply restricted Nadaraya-Watson kernel regression to derive the total economic impact as a function of climate change. I restrict the sample to information known at the time of Second, Third, Fourth and Fifth Assessment Reports of the Intergovernmental Panel on Climate Change. There has been no statistically significant change in the estimates over time. Nonetheless, subsequent assessment reports convey different messages in their Technical Summaries, with even greater deviations in the Summaries for Policy Makers. The IPCC should rely more strongly on objective methods. |
| Keywords: | IPCC, economic impact of climate change, kernel regression |
| JEL: | Q54 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susewp:6914&r=env |
| By: | Ngo Van Long; Frank Staehler |
| Abstract: | This paper demonstrates that technological progress in production of renewable energy can influence the extraction path of fossil fuels indirectly by a change in the equilibrium interest rate. We show in a simple model that the indirect effect can be so strong that first-period or even aggregate extraction levels rise with technological progress. Cet article démontre que les progrès technologiques dans la production d'énergie renouvelable peut influencer la trajectoire de l'extraction de combustibles fossiles indirectement par un changement dans le taux d'intérêt d'équilibre. Nous montrons dans un modèle simple que l'effet indirect peut être si fort que les niveaux d'extraction augmentent avec le progrès technologique. |
| Keywords: | Natural Resources, Technical progress, The Green Paradox, Ressources naturelles, Progrès technologique, Le Paradoxe Vert |
| JEL: | Q31 Q42 |
| Date: | 2014–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2014s-16&r=env |
| By: | Stephen Gibbons |
| Abstract: | This study provides quantitative evidence on the local benefits and costs of wind farm developments in England and Wales, focussing on their visual environmental impacts. In the tradition of studies in environmental, public and urban economics, housing costs are used to reveal local preferences for views of wind farm developments. Estimation is based on quasi-experimental research designs that compare price changes occurring in places where wind farms become visible, with price changes in appropriate comparator groups. These comparator groups include places close to wind farms that became visible in the past, or where they will become operational in the future and places close to wind farms sites but where the turbines are hidden by the terrain. All these comparisons suggest that wind farm visibility reduces local house prices, and the implied visual environmental costs are substantial. |
| Keywords: | Housing prices, environment, wind farms, infrastructure |
| JEL: | R Q |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0159&r=env |
| By: | Gren, Ing-Marie (Department of Economics, Swedish University of Agricultural Sciences); Andersson Franko, Mikael (Department of Economics, Swedish University of Agricultural Sciences); Holstein, Fredrik (Department of Economics, Swedish University of Agricultural Sciences) |
| Abstract: | This paper developed a simple dynamic model in order to analyse the impact of social capital on violation of environmental regulations. Two main channels of influence were identified; through informal enforcement of regulations and through effects on costs from disinvestment in social capital caused by violation. The model was tested using survey data on enforcement and violation of command and control regulations at municipalities and counties in Sweden. Four different measures on the social capital variable were used; general trust, trust in local and national governments, and organizational activity. Count data models were used for estimating the explanatory power of these variables in relation to inspection frequency and control variables of community characteristics. Statistically best results were obtained for organizational activity for all firm categories. The results showed that both the level of this social capital measure and its growth over time curb violation. |
| Keywords: | social capital; violation of environmental regulations; econometric test; count data model; Sweden |
| JEL: | K33 K42 Q58 |
| Date: | 2014–04–09 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:slueko:2014_004&r=env |
| By: | Claudio Vitari (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM)) |
| Abstract: | Ecological sustainability and social equity are among the United Nations' Millennium Development Goals - but, unfortunately, as the years pass, they are still far from being reached. But concern about these issues has made its way to industry and the IS community. IS play a central role in companies as they are cross-functional and have a strategic role in our current information society. We argue that it is our responsibility, as IS scholars, to dedicate some of our research efforts toward environmental sustainability and to social equity, and that our teaching, our journals and our associations should also address these two objectives. This article proposes a new framework to facilitate the inclusion of both ecological sustainability and social equity concerns within the IS discipline. |
| Keywords: | Social Equity, Ecological Sustainability, IS community |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:hal:gemwpa:hal-00969189&r=env |
| By: | Andy Stirling (SPRU, University of Sussex, UK) |
| Keywords: | power, social science, transformation, energy transitions, renewable energy, nuclear power, climate geoengineering, sustainability, reflexive governance, sociotechnical regimes, planetary boundaries |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2014-03&r=env |
| By: | ACHABOU Mohamed Akli |
| Abstract: | The aim of this paper is to examine the question of the sustainability of biofuel activity in the EU in the context of reform of the sugar regime. In this optical an exploratory analysis was conducted. The results show that the biofuel activity is still economically fragile and socially unsustainable. Environmentally, more efforts are needed to improve the performance of this activity, especially in some European countries where the production equipment used is antiquated. Political support is still necessary to finance investment in technology need to improve economic and environmental performance of the biofuel activity. |
| Keywords: | Sugar regime, EU, biofuel, sustainability. |
| Date: | 2014–04–10 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-208&r=env |
| By: | Anke D Leroux; Stuart M Whitten |
| Abstract: | Ecological rehabilitation is subject to a variety of risks affecting the likely return on investment. We propose a real options approach to valuing and ranking individual rehabilitation projects, accounting for irreversible investment and the effects of climate change on species loss, future rehabilitation benefits and frequency of catastrophic events. The allocation of voluntary rehabilitation contracts on the basis of option pricing results in significantly greater value for money for the Government as compared with the conventional cost-effectiveness criterion as is illustrated for the case of Box Gum Grassy Woodland rehabilitation in Australia. |
| Keywords: | real options; biodiversity; irreversibility; risk; extinction debt, Box Gum Grassy Woodlands |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:mos:moswps:2014-04&r=env |
| By: | Edilio Valentini (Department of Economics, University G. d'Annunzio of Chieti-Pescara); Paolo Vitale (Department of Economics, University G. d'Annunzio of Chieti-Pescara) |
| Abstract: | In this paper we characterize the preferences of a pessimistic social planner concerned with the potential costs of extreme, low-probability climate events. This pessimistic attitude is represented by a recursive optimization criterion à la Hansen and Sargent (1995) that introduces supplementary curvature in the social preferences of standard linear-quadratic optimization analysis and, under certain conditions, it can be shown to correspond to the Epstein-Zin recursive utility. The introduction of extra convexity and the separation between risk-aversion and time-preference implies that, independently of the choice of the discount rate, a sharp, early and steady mitigation effort arises as the optimal climate policy, supporting the main recommendation of the Stern Review (Stern, 2007). Nonetheless, we accommodate for its main criticism of using a too low and questionable discount rate (Nordhaus, 2007), while preserving the assumption of a normal (thin-tailed) probability distribution (Weitzman, 2009). Finally, we argue that our theoretical framework is sufficiently general and robust to possible mis-specifications of the model. |
| Keywords: | Climate Change, Climate Policy Targets, Risk Aversion, Pessimism |
| JEL: | C61 Q54 |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2014.33&r=env |
| By: | Paola Floreddu (Università di Cagliari - Università di Cagliari); Claudio Vitari (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM)) |
| Abstract: | While a great amount of literature has focused on dynamic capability and IT dynamic capabilities, there has been little theory and systematic research done on their lifecycle. Based on the dynamic capability and IS literature, this paper aims to contribute to this body of knowledge by studying the lifecycle of the Green Information Technologies/Systems (IT/S). Dynamic Capability is defined as the two-fold organizational process of: (1) recognizing the role played in ecological sustainability by the Information Technologies and Systems (IT/S), and (2) the contribution made to the ecological sustainability by the IT/S. We advance a research model aimed at understanding the role of the Green IT/S' Dynamic Capability in choosing and managing green IT/S strategies. |
| Keywords: | Dynamic capabilities framework; Green IT/IS; Capabilities, Capability Lifecycle; Green IT/S strategies |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:hal:gemwpa:hal-00969204&r=env |
| By: | Dina Tasneem; Jim Engle-Warnick; Hassan Benchekroun |
| Abstract: | We experimentally study behavior in a common property renewable resource extraction game with multiple equilibria. In the experiment, pairs of subjects competitively extract and consume a renewable resource in continuous time. We find that play evolves over time into multiple steady states, with heterogeneous extraction strategies that contain components predicted by equilibrium strategies. We find that simple rule-of-thumb strategies result in steady-state resource levels that are similar to the best equilibrium outcome. Sensitivity of aggressive strategies to the starting resource level suggests that improvement in renewable resource extraction can be attained by ensuring a healthy initial resource level. Our experiment thus provides empirical evidence for equilibrium selection in this widely used differential game, as well as evidence for the effectiveness of a resource management strategy. |
| Keywords: | Renewable resources, dynamic games, differential games, experimental Economics, Markovian Strategies, Common Property Resource, |
| JEL: | C90 C73 Q2 |
| Date: | 2014–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2014s-09&r=env |
| By: | Paola Floreddu (Università di Cagliari - Università di Cagliari); Claudio Vitari (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM)) |
| Abstract: | While a great amount of literature has focused on dynamic capability and IT dynamic capabilities, there has been little theory and systematic research done on their lifecycle. Based on the dynamic capability and IS literature, this paper aims to contribute to this body of knowledge by studying the lifecycle of the Green Information Technologies/Systems (IT/S). Dynamic Capability is defined as the two-fold organizational process of: (1) recognizing the role played in ecological sustainability by the Information Technologies and Systems (IT/S), and (2) the contribution made to the ecological sustainability by the IT/S. We advance a research model aimed at understanding the role of the Green IT/S' Dynamic Capability in choosing and managing green IT/S strategies. Keywords: Dynamic |
| Keywords: | Dynamic capabilities framework; Green IT/IS, Capabilities; Capability Lifecycle; Green IT/S strategies |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:hal:gemwpa:hal-00969198&r=env |
| By: | Danielle Devogelaer |
| Abstract: | In this working paper, the employment effect triggered by a transition towards an all renewable energy system in Belgium by 2050 is scrutinized. The job impact is estimated up until the year 2030. Using a labour intensity methodology, net job gains are to be expected in each renewable trajectory for any given year. A distinction is made between construction, installation and manufacturing (CIM) and operations, maintenance and fuel processing (O&M) jobs, with the maximum amount of CIM jobs created over the reference scenario exceeding the amount of O&M jobs. This points to the fact that renewable energy sources tend to have a higher construction and installation component in employment than fossil fuels. These installation jobs, along with numerous other job types (e.g. monitoring, planning, certifying), are bound to be and remain domestic. A sensitivity analysis on the effect of applying a decreasing employment multiplier over time is modeled, accompanied by an enumeration of arguments pro and contra using this type of multiplier. All through the paper, a number of reflections are brought to the fore that may nuance the obtained figures and effects. In order for the jobs to materialize, targeted educations, preferably in close collaboration with industry, technical schooling and interest in science are crucial. Enabling policies and measures within a solid, transparent policy framework should accompany the whole process. In this regard, some policy domains and actions are described that could prove useful in tapping the vast job potential. |
| Keywords: | Employment, Long-term energy projections, Input-output analysis, Renewable energy sources |
| JEL: | C6 Q4 |
| Date: | 2013–09–09 |
| URL: | http://d.repec.org/n?u=RePEc:fpb:wpaper:1307&r=env |
| By: | Alain Henry; Dimi Jottier |
| Abstract: | This working paper describes TransAccount, an accounting model created at the FPB to build sustainable development scenarios, in particular their climate and energy segment, using a backcasting approach. To construct a scenario with TransAccount, the long term objectives and hypotheses of a global sustainable development scenario (for example Pyramid or Mosaic, scenarios published in the Belgian 4th Federal Report on Sustainable Development) have to be translated into quantitative objectives and hypotheses on technologies and on consumption and production patterns. The constructed scenarios highlight the changes needed in technology and in consumption and production patterns to meet the challenges of a sustainable development. |
| Date: | 2013–12–11 |
| URL: | http://d.repec.org/n?u=RePEc:fpb:wpaper:1314&r=env |
| By: | Michel Damian (PACTE - Politiques publiques, ACtion politique, TErritoires - Institut d'Études Politiques [IEP] - Grenoble - CNRS : UMR5194 - Université Pierre-Mendès-France - Grenoble II - Université Joseph Fourier - Grenoble I) |
| Abstract: | L'économie standard de l'environnement et de l'effet de serre - centrée sur la théorie des prix au détriment d'une économie de la production - a fait perdre deux décennies à la compréhension de la question climatique et a, en quelque sorte, bloqué la réflexion sur les voies de la décarbonisation. L'action collective a été engagée en 1992 avec la signature de la Convention sur les changements climatiques, puis mise en œuvre dans le cadre du Protocole de Kyoto à partir de 1997. Elle était fondée sur deux piliers : 1) un accord multilatéral contraignant susceptible de s'imposer un jour à tous les Etats et, 2) un marché international des gaz à effet de serre susceptible de minimiser le coût total de la réduction des émissions. Cette architecture " par le haut " est aujourd'hui dans une impasse. La thèse soutenue est que la politique pour préserver le climat change de paradigme. La nouvelle approche se focalise sur la production. Elle prend la forme d'une transition énergétique et industrielle de longue durée, très différemment envisagée d'un pays à l'autre. C'est une démarche " par le bas ", dans laquelle les politiques nationales, les réglementations, et les technologies à basse teneur en carbone, deviennent la pierre d'angle de la lutte contre le réchauffement. L'Accord climatique de Paris, qui devrait être signé en 2015, sera fondé sur les politiques nationales et entérinera ce changement de paradigme. |
| Keywords: | politique climatique ; historique |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00969308&r=env |
| By: | Klauer, Bernd; Schiller, Johannes; Bathe, Frauke |
| Abstract: | The EU Water Framework Directive (WFD) calls for cost-effective measures to achieve a good status in all European ground, surface and coastal waters. Besides eutrophication, the degradation of hydro-morphology is the main reason for failing the WFD's objectives in Germany. In this paper , we conceptualize the interactive decision support process BASINFORM-M for finding proper locations for river restora tion. The method combines the recently proposed stepping stone concept from aquatic ecology with elements from cost-effectiveness analysis, multi-criteria analysis and participatory approaches. BASINFORM-M exemplifies a shift away from the isolated resto ration of single river reaches to wards a consideration of functional relationships within the whole river network. In doing so, it satisfies the WFD's requirement of considering cost-effectiveness without neglecting other important evaluation criteria. -- |
| Keywords: | cost-effectiveness analysis,decision support,EU Water Framework Directive,river hydro-morphology,ecological networks,stepping stone concept,BASINFORM,spatial allocation of restoration actions,participatory decisionmaking |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ufzdps:92014&r=env |
| By: | Mannino, Ilda; Ninka, Eniel; Turvani, Margherita |
| Abstract: | A set of factors facilitate the role of Eco-Industrial Parks in addressing the many environmental challenges arising with economic development: among such factors the local context in which the EIP is embedded, i.e. the cohesion of the community, the cooperation among actors, the proximity and the adaptability, as well as the global context and economic phase play a major role. EIPs’ evolution process is path-dependent, hence also history and choices made in the past as well as the context of the industrial sector are very important in determining their success. We study the industrial area of Venice, namely Porto Marghera, as a showcase, in order to understand how history can twist the evolution of an industrial area and determine its destiny. The analysis covers Industrial Symbiosis leverage factors, as well as the local, national and international context drivers that, over time, promoted or hindered the development and evolution of the area. We show how, due to the action of such multiple factors, such large and major Italian industrial area presenting just few years ago characteristics that could have favoured its development as an EIP, resulted eventually in a failure and the closing down of the most relevant economic activities supporting the functioning of the EIP itself. Context factors and single specific shocks, related to local issues as well as to the global, regional, and national scale, shifted the evolutionary path of a well-integrated EIP, even though the technical and internal characteristics of the industrial area were in place. |
| Keywords: | Industrial Symbiosis, Eco-industrial Park, Chemistry sector, Italy |
| JEL: | L23 L61 L65 Q51 Q53 |
| Date: | 2014–04–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:55166&r=env |
| By: | Beznoska, Martin |
| Abstract: | This paper investigates empirically the consumer demand of environmentally relevant goods for Germany, as well as their relationship to the demand for leisure. Higher prices for energy goods like gas, electricity or fuel oil due to higher indirect taxation amongst others may have serious welfare and distributional effects for households. Also, there is very little evidence of the labor market implications of environmental taxation, as there is e.g. no quantification of labor supply effects, respectively leisure demand effects for Germany. Using a demand system to estimate the price, cross-price and income effects of the goods mobility, electricity, heating and leisure from microdata, there will also be accounted for the extensive demand for leisure, which is the not negligible labor market participation. Additionally, the extensive and intensive leisure demand is combined to total leisure demand elasticities, which can then be used for welfare and behavior analyses. -- |
| Keywords: | consumer demand system,almost ideal demand system,environmental taxation,demand for leisure |
| JEL: | D12 H31 Q48 R48 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fubsbe:20148&r=env |
| By: | Corey Allan (Motu Economic and Public Policy Research); Adam B. Jaffe (Motu Economic and Public Policy Research and National Bureau of Economic Research); Isabelle Sin (Motu Economic and Public Policy Research) |
| Abstract: | This paper surveys the existing literature on diffusion of environmentally beneficial technology. Overall, it confirms many of the lessons of the larger literature on technology diffusion: diffusion often appears slow when viewed from the outside; the flow of information is an important factor in the diffusion process; networks and organisations can matter; behavioural factors such as values and cognitive biases also play a role. With respect to policy instruments, there is some evidence that the flexibility of market-based instruments can have a beneficial impact on technology diffusion, but there are also numerous cases in which regulations have forced the adoption of new technologies. There would be significant benefit to increased investment in studies that look at questions such as the role of information provision, networks and framing issues in households’ and firms’ adoption decisions. |
| Keywords: | technology diffusion; technology transfer; policy instruments; green technology |
| JEL: | O33 Q55 Q56 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:mtu:wpaper:14_04&r=env |