|
on Environmental Economics |
| By: | Lecocq, Frank |
| Keywords: | Agricultural and Food Policy, Environmental Economics and Policy, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:169059&r=all |
| By: | Antimiani Alessandro (Istituto Nazionale di Economia Agraria (INEA), Roma (Italy).); Valeria Costantini (Department of Economics, Roma Tre University, Roma (Italy).); Anil Markandya (Basque Centre for Climate Change (BC3), Spain.); Chiara Martini (Agenzia nazionale per le nuove tecnologie, l’energia e lo sviluppo economico sostenibile (ENEA), Italy.); Alessandro Palma (Department of Economics, Roma Tre University, Roma (Italy).); Maria Cristina Tommasino (Agenzia nazionale per le nuove tecnologie, l’energia e lo sviluppo economico sostenibile (ENEA), Italy.) |
| Abstract: | We investigate the trade-offs between economic growth and low carbon targets for developing and developed countries in the period up to 2035. Policy options are evaluated with an original version of the dynamic CGE model GDynE. Abatement costs appear to be strongly detrimental to conomic growth for developing countries. We investigate options for reducing these costs that are consistent with a green growth strategy. We show that Green Climate Fund financed through a levy on carbon taxation can benefit all parties, and larger benefits are associated with investment of the Green Climate Fund to foster energy efficiency in developing countries. |
| Keywords: | Climate Change Policies, Green Growth, Developing Countries, Dynamic CGE Energy Model, Green Climate Fund. |
| JEL: | C68 H23 O44 Q54 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:1614&r=all |
| By: | Steinbuks, Jevgenijs; Hertel, Thomas W. |
| Abstract: | Economic, agronomic, and biophysical drivers affect global land use, so all three influences need to be considered in evaluating economically optimal allocations of the world's land resources. A dynamic, forward-looking optimization framework applied over the course of the coming century shows that although some deforestation is optimal in the near term, in the absence of climate change regulation, the desirability of further deforestation is eliminated by mid-century. Although adverse productivity shocks from climate change have a modest effect on global land use, such shocks combined with rapid growth in energy prices lead to significant deforestation and higher greenhouse gas emissions than in the baseline. Imposition of a global greenhouse gas emissions constraint further heightens the competition for land, as fertilizer use declines and land-based mitigation strategies expand. However, anticipation of the constraint largely dilutes its environmental effectiveness, as deforestation accelerates prior to imposition of the target. |
| Keywords: | Climate Change Mitigation and Green House Gases,Environmental Economics&Policies,Climate Change Economics,Environment and Energy Efficiency,Energy and Environment |
| Date: | 2014–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6928&r=all |
| By: | Claudia Ghisetti (Dipartimento di Economia e Management, Università di Ferrara and SEEDS - Sustainability Environmental Economics and Dynamic Studies.); Francesco Quatraro (GREDEG-CNRS University of Nice-Sophia Antipolis (France) and BRICK, Collegio Carlo Alberto (Torino).) |
| Abstract: | This paper provides empirical investigation of the effects of environmental innovations (EIs) on environmental performances, as proxied by the environmental productivity (EP) measure. We focused on sectoral environmental productivity of Italian Regions by exploiting the Regional Accounting Matrix including Environmental Accounts(Regional NAMEA). Patent applications have been extracted by the Patstat Database and assigned to the environmental domain by adopting three international classifications of green technologies: the WIPO IPC green inventory, the European Patent Office climate change mitigation technologies classification (Y02) and the OECD ENV-Tech indicators. Econometric results outline that regions-sectors characterized by higher levels of green technologies (GTs) are actually those facing better environmental performance. These positive effects directly stem from the introduction of GT in the same sector, as well as from the introduction of GT in vertically related sectors. |
| Keywords: | environmental performance, regional NAMEA, environmental innovation, green technologies, vertical relatedness. |
| JEL: | O33 Q53 Q55 Q56 R11 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:1014&r=all |
| By: | Glenka, Klaus; Eorya, Vera; Colombo, Sergio; Barnes, Andrew |
| Abstract: | Greenhouse gas mitigation in agriculture implies changes in farm management practices. Knowledge on farmers’ current adoption of management practices aimed at reducing emissions, and their preferences regarding these, is important to inform the development of robust climate change mitigation policies in the agricultural sector. In the context of Scottish dairy farms, this study combines information on current adoption of mitigation practices with preference information based on Best-Worst-Scaling to facilitate the choice of mitigation practices to support via policy mechanisms that encourage and incentivise change. We find that current adoption plays an important role in understanding preference rankings of mitigation practices, and identify promising mitigation practices based on their potential for additional emission reduction, their perceived contribution to the farm’s financial and environmental performance and information on their cost-effectiveness. |
| Keywords: | Climate change, Mitigation, Best-Worst-Scaling, Stated preferences, Technology adoption, Dairy farming, Agribusiness, Environmental Economics and Policy, Livestock Production/Industries, Research and Development/Tech Change/Emerging Technologies, Q19, Q54, D03, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170358&r=all |
| By: | Avner, Paolo; Rentschler, Jun; Hallegatte, Stephane |
| Abstract: | This paper investigates the effect of carbon or gasoline taxes on commuting-related CO2 emissions in an urban context. To assess the impact of public transport on the efficiency of the tax, the paper investigates two exogenous scenarios using a dynamic urban model (NEDUM-2D) calibrated for the urban area of Paris: (i) a scenario with the current dense public transport infrastructure, and (ii) a scenario without. It is shown that the price elasticity of CO2 emissions is twice as high in the short run if public transport options exist. Reducing commuting-related emissions thus requires lower (and more acceptable) tax levels in the presence of dense public transportation. If the goal of a carbon or gasoline tax is to change behaviors and reduce energy consumption and CO2 emissions (not to raise revenues), then there is an incentive to increase the price elasticity through complementary policies such as public transport development. The emission elasticity also depends on the baseline scenario and is larger when population growth and income growth are high. In the longer run, elasticities are higher and similar in the scenarios with and without public transport, because of larger urban reconfiguration in the latter scenario. These results are policy relevant, especially for fast-growing cities in developing countries. Even for cities where emission reductions are not a priority today, there is an option value attached to a dense public transport network, since it makes it possible to reduce emissions at a lower cost in the future. |
| Keywords: | Transport Economics Policy&Planning,Climate Change Mitigation and Green House Gases,Climate Change Economics,Transport in Urban Areas,Transport and Environment |
| Date: | 2014–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6941&r=all |
| By: | Olarinde, Luke O.; Adepoju, Adebusola A.; Jabaru, Muritala O. |
| Abstract: | It is widely known that climate change and agriculture are interrelated process, both of which take place on a global scale. In effect, crop and animal farming, fisheries, forestry, with the resultant access to food and fibre in many continents and regions of the world are projected to be severely compromised by climate variability and change. Several strategies aimed at reducing climate variability induced hazards abound. These include cultural and conventional food and farming systems to climate variability and these are aimed at enhancing the adaptive capacity and mitigation. In this study, we are investigating the separate and joint effects/impacts that the use of various climate change adaptation strategies have on crop yields and on the resultant marketed values of crops. We are applying instrumental variables method on a cross-sectional survey data of two states (Osun and Oyo) of south western Nigeria to evaluate these impacts. The findings suggest that the use of climate change adaptation strategies has impacted on expected yield and on marketed crop outcomes. Policy indicative variables suggest that sustainable crop production can be achieved in the face of climate change and this can effectively create a win-win situation from the synergy between African and European agriculture. |
| Keywords: | Crop Production/Industries, Environmental Economics and Policy, Farm Management, International Relations/Trade, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170484&r=all |
| By: | Dercon Stefan |
| Abstract: | The developing world is experiencing substantial environmental change, and climate change is likely to accelerate these processes in the coming decades. Due to their initial poverty and their relatively high dependence on environmental capital for their livelihoods, the poor are likely to suffer most due to their low resources for mitigation and investment in adaptation. Economic growth is essential for any large-scale poverty reduction. Green growth, a growth process that is sensitive to environmental and climate change concerns, can be particularly helpful in this respect. We focus on the possible trade-offs between the greening of growth and poverty reduction, and we highlight the sectoral and spatial processes behind effective poverty reduction. High labor intensity, declining shares of agriculture in GDP and employment, migration, and urbanization are essential features of poverty-reducing growth. We contrast some common and stylized green-sensitive growth ideas related to agriculture, trade, technology, infrastructure, and urban development with the requirements of poverty-sensitive growth. We find that these ideas may cause a slowdown in the effectiveness of growth to reduce poverty. The main lesson is that trade-offs are bound to exist; they increase the social costs of green growth and should be explicitly addressed. If they are not addressed, green growth may not be good for the poor, and the poor should not be asked to pay the price for sustaining growth while greening the planet. |
| Keywords: | Environmental Economics&Policies,Rural Poverty Reduction,Achieving Shared Growth,Climate Change Economics,Economic Theory&Research |
| Date: | 2014–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6936&r=all |
| By: | Halkos, George |
| Abstract: | This paper presents the dimensions of the climate change problem and its economic effects as well as the evolution of the international meetings to cope with it. In these lines it discusses the use of Integrated Assessment Models (IAMs), the damage cost estimates and various other issues related to global warming and concerning the significance of uncertainty and risk aversion, the importance of discounting and the impact of financial crisis on emissions predictions. The methods of constructing abatement cost curves together with adaptation policies are presented. It also refers to the basic policy approaches for reducing greenhouse gases paying attention to emissions trading schemes. |
| Keywords: | Climate change; Integrated Assessment Models; Abatement costs. |
| JEL: | Q50 Q52 Q54 Q58 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:56841&r=all |
| By: | Timilsina, Govinda R.; Landis, Florian |
| Abstract: | Morocco has set an ambitious target of supplying 42 percent of electricity through renewable sources, 14 percent each through hydro, wind, and solar, by 2020. To analyze the economic and environmental implications of implementing this target, this study uses a dynamic computable general equilibrium model with foresight that includes explicit representation of various electricity generation technologies. Two types of policy instruments, a production subsidy financed through fossil fuel taxation and a renewable energy mandate financed through increased electricity prices, have been considered to attract investment in renewable energy. The study shows that meeting the renewable target would achieve up to 15 percent reduction of national greenhouse gas emissions in 2020 compared with a situation in the absence of the target, or the baseline. However, meeting the target would decrease household consumption of goods and services, thereby worsening household welfare. The study also shows that the renewable production subsidy financed through fossil fuel taxation is superior to the mandate policy to meet the renewable energy target in Morocco, as the former would cause a lower loss in economic welfare and a larger reduction of greenhouse gas emissions than the latter. |
| Keywords: | Energy Production and Transportation,Climate Change Mitigation and Green House Gases,Energy Demand,Environment and Energy Efficiency,Energy and Environment |
| Date: | 2014–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6940&r=all |
| By: | Breustedt, Gunnar |
| Abstract: | To internalize climate-related external costs from agricultural production and food consumption Pigou taxes and carbon credits increase private costs for food. Voluntary consumer choices for carbon-neutral food can be advantageous over such policy measures since they avoid higher food prices for the poor. We empirically analyze consumers’ willingness-to-pay for hypothetical carbon-reduced as well as carbon-neutral milk and apple juice. Data are collected in Discrete Choice Experiments in a German supermarket. Estimates reveal a substantial price premium for the carbon-neutral products which is probably sufficient to cover the products’ extra costs, including the purchase of carbon credits. The premiums are around 0.20 € per liter milk and 0.30 € per liter apple juice. Although the external validity of stated-preference methods is limited the willingness-to-pay measures for organic milk and juice as well as for different real-world labels in our experiment are similar to real-world price premiums. |
| Keywords: | climate change, carbon-neutral food, discrete-choice-experiment, Consumer/Household Economics, Environmental Economics and Policy, Food Consumption/Nutrition/Food Safety, Research and Development/Tech Change/Emerging Technologies, Research Methods/ Statistical Methods, Q54, Q130, Q180, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:169748&r=all |
| By: | Glithero, N. J.; Wilson, P.; Ramsden, S. J. |
| Abstract: | Food and fuel security in the face of population growth and climate change represent key societal challenges. Extending an arable farm-level bio-economic optimisation model ‘MEETA’ to include dedicated energy crops (DECs) and water metrics, we quantify water use implications and trade-offs between greenhouse gas emissions, net energy and farm profitability. Drawing upon the limited available water use data for arable and energy crops applicable for East Anglia in the UK, six different farm scenarios were investigated. Profit maximisation produces a conventional crop mix, while maximising net energy and minimising greenhouse gas emissions result in crop mixes which impose financial penalties and lower water use in comparison to conventional cropping; average financial impacts of the associated reduced water use under these respective scenarios range from £0.12 to £0.28 per m3 of water. Confidence in these results and work on water use and management more generally would be improved through better data on inter-annual crop-water needs, temporal water availability relationships and water response functions. Water availability for UK crop production is largely perceived to be a non-limiting resource; however climate change predictions demonstrate that availability of water for UK crop production is of increasing concern for both farmers and society as a whole. |
| Keywords: | Food, Bioenergy, Water Use, Modelling, Greenhouse Gas Emissions, Environmental Economics and Policy, International Relations/Trade, Resource /Energy Economics and Policy, Q41, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170557&r=all |
| By: | Henderson, J. Vernon; Storeygard, Adam; Deichmann, Uwe |
| Abstract: | This paper documents a significant impact of climate variation on urbanization in Sub-Saharan Africa, primarily in more arid countries. By lowering farm incomes, reduced moisture availability encourages migration to nearby cities, while wetter conditions slow migration. The paper also provides evidence for rural-urban income links. In countries with a larger industrial base, reduced moisture shrinks the agricultural sector and raises total incomes in nearby cities. However, if local cities are entirely dependent on servicing agriculture so their fortunes move with those of agriculture, reduced moisture tends to reduce local urban incomes. Finally, the paper shows that climate induces employment changes within the rural sector itself. Drier conditions induce a shift out of farm activities, especially for women, into non-farm activities, and especially out of the workforce. Overall, these findings imply a strong link between climate and urbanization in Africa. |
| Keywords: | Science of Climate Change,Climate Change Mitigation and Green House Gases,Population Policies,Climate Change Economics,Water Conservation |
| Date: | 2014–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6925&r=all |
| By: | Ryan, Mary; Buckley, Cathal; Dillon, Emma Jane; Donnellan, Trevor; Hanrahan, Kevin; Hennessy, Thia; Moran, Brian |
| Abstract: | Developing the capacity to assess and chart trends in the sustainability of farming and food production is becoming increasingly more important as agriculture strives to produce more food while minimising the risk to the natural environment. The multi-faceted nature of sustainability is encompassed in economic, environmental, social and innovation indicators. This paper outlines the development of farm level indicators for these sustainability criteria in Ireland. A comparison of indicators across farm systems shows that dairy farms, followed by tillage farms, tend to be the most economically and socially sustainable farm systems. Interestingly, in relation to greenhouse gas emissions in particular, the top performing farms in an economic sense also tend to be the best performing farms from an environmental sustainability perspective. This trend is also evident in terms of the adoption of innovative practices on farm, which is found to be strongly positively correlated with economic performance. |
| Keywords: | Agriculture, Sustainability, Agricultural and Food Policy, Environmental Economics and Policy, Food Consumption/Nutrition/Food Safety, Q12, Q18, Q56, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170501&r=all |
| By: | Blandford, David; Gaasland, Ivar; Vårdal, Erling |
| Abstract: | Agriculture makes a significant contribution to Norway’s emissions of greenhouse gases (GHG). Although the sector accounts for only 0.3 per cent of GDP, it accounts for roughly 9 per cent of total GHG emissions. Norwegian agriculture is dominated by livestock production; ruminants (cattle and sheep) are particularly important. There are opportunities for GHG mitigation under existing technology through changes in agricultural practices. Analytically we derive abatement cost curves for Norway in terms of the change in economic welfare, and on a theoretical basis we examine the impact of various policy objectives on the abatement cost curve. In particular we consider the policy objective of keeping the production of calories at the current level. We use a detailed economic model to assess the impact and welfare implication of a reduction in GHG emissions. |
| Keywords: | greenhouse gas mitigation, economic model, abatement costs, Environmental Economics and Policy, International Relations/Trade, Research and Development/Tech Change/Emerging Technologies, Research Methods/ Statistical Methods, C61, Q18, Q54, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:169734&r=all |
| By: | Massimiliano Mazzanti (Dipartimento di Economia e Management, Università di Ferrara.) |
| Abstract: | This note addresses the issue of market and policy shocks in the transition to sustainability. Market Shocks may be driven by price volatility; policy shocks are likely to occur either given contingent conditions of policy feasibility - a concept that shifts over time – or in reaction to extreme climatic events. The paper questions the role of ‘events’ as drivers of change, with a focus on innovation responses. In doing so, it broadens the perspective on environmental policy's role and effects. Environmental policy is connected to institutional and market dynamics. It is not limited to the Pigovian rationale – the mere minimization of current costs - but rather tied to a 'standard and cost approach' which attempts to incorporate efficiency concepts in a dynamic scenario, where learning and adaptation through technological and behavioral changes are crucial. |
| Keywords: | EU Regulation, solid waste, oligopoly, environmental externalities. |
| JEL: | D21 H41 O33 Q53 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:1214&r=all |
| By: | Dorothée Boccanfuso (Département d'Économique, Université de Sherbrooke); Véronique Gosselin (GREDI, Université de Sherbrooke); Jonathan Goyette (Département d'Économique, Université de Sherbrooke); Luc Savard (Département d'Économique, Université de Sherbrooke); Clovis Tanekou Mangoua (GREDI, Université de Sherbrooke) |
| Abstract: | Quebec’s forests represent 20% of the Canadian forest and 2% of world forests. They play a major role for habitat preservation, supplying goods and services to the population and hence contributing to the economy of this Canadian province. Climate change (CC) will have an impact on forests through increased droughts, warmer summers and winters or infestations such as the pine beetle (British Columbia and New Jersey). In our study we analyze the economic and distributional impact of CC on the forest industry in Quebec. To achieve this, we simulate two productivity changes in the forestry sector and two potential adaptation programs that could be implemented to help the sector cope with CC direct and indirect effects. Our analysis is performed over a 40 year using a recursive dynamic CGE-micro-simulation framework. We show that the economic impacts on the forest industry are relatively substantial but quite small for the rest of the economy. Moreover, the distributional impacts are present and significant but they are weak (below 0.1%). |
| Keywords: | Distributive analysis, computable general equilibrium model, micro-simulation model, climate change, adaptation policies |
| JEL: | C68 D58 I32 O13 Q54 Q56 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:shr:wpaper:14-04&r=all |
| By: | Luciana Cavalcanti Maia L.C.M. Santos; Humberto Reis H.R. Matos; Yara Schaeffer-Novelli; Marília Cunha-Lignon; Marisa Dantas M.D. Bitencourt; Nico Koedam; Farid Dahdouh-Guebas |
| Abstract: | In Brazil, despite the existence of various environmental laws to protect mangroves, this ecosystem has been affected by a variety of anthropogenic activities. The São Francisco River Estuary (SFRE, Brazil Northeast) comprises significant mangrove forests, important for human populations, and is included in an Environmental Protected Area of sustainable use which does not have a management plan. This work assessed and mapped anthropogenic activities on the mangroves of this estuary and provided a number of guidelines for a local management plan. Satellite images (SPOT 5 and CBERS 2B) of 2008 were processed and a land use/cover map (study area size: 192.4km2) produced and verified by fieldwork. About 93% (178.8km2) of the study area is occupied by natural cover such as: sandy coastal vegetation (147.3km2, 77%), mangroves (30.1km2, 15.7%) and intertidal flats (1.4km2, 0.7%), while 7% (13.6km2) is occupied by human activities as aquaculture (4.5km2, 2.4%) and agriculture (9km2, 4.7%). These uses are spatially distributed within mangroves, accounting for approximately one quarter (7.8km2) of its area, which may indicate the conversion of these forests. Shrimp farming is the main anthropogenic activity, occupying the highest area and occurring within the tallest Rhizophora mangle forests (tree height >15m). We recommend that a management plan for the SFRE considers: the implementation of sustainable aquaculture practices (e.g. small-scale without deforestation of mangroves, use of native species, effluent treatment, socio-economic equity), strategies for the compliance of the laws regarding shrimp farming license and operation and support the creation of community-based cooperatives for the execution of sustainable aquaculture. © 2013 Elsevier Ltd. |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/168498&r=all |
| By: | Upton, Vincent; Ryan, Mary; O’Donoghue, Cathal |
| Abstract: | Forest benefits are now commonly understood through the ecosystem service framework. Recreational visits to forests, considered an important cultural service, have been the target of a significant proportion of the non-market valuation literature to date. Such models have evolved from relatively simple travel cost models to employing GIS to develop spatial demand models. Due to restrictions on accessing private land, forests are a particularly important recreational resource in Ireland as those which are publicly owned are accessible to the public and free to use. In addition, recent policies directed at private forests have included attempts to encourage owners to open their forests to the public. This study outlines the development of a spatially explicit recreation demand model for Ireland that describes how visitation differs across the population based on population characteristics and existing recreational resources. The model combines a zero-inflated negative binomial model of annual forest visits of a random sample of individuals with a simulated population model of Ireland and spatial data on household location. The results include an estimation of annual forest visitation and the development of a demand map that highlights where forest expansion could be targeted to maximise the recreational value of afforestation. |
| Keywords: | Forestry, Recreation demand, GIS, Environmental Economics and Policy, International Relations/Trade, Land Economics/Use, Research Methods/ Statistical Methods, Q51, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170791&r=all |
| By: | McVittie, Alistair; Austin, Zoe; White, Piran; Moxey, Andrew; McCracken, Davy; Moran, Dominic |
| Abstract: | The development of environment measures in the reformed CAP can be informed by the evaluation of existing policies. We undertook a cost-effectiveness analysis of biodiversity measures in Scotland to determine whether current biodiversity objectives have been achieved. We assessed measures targeting 13 species and 5 habitats under the Scottish Rural Development Programme (SRDP) and similar schemes. Expert interviews were used to determine the extent to which published conservation objectives for species and habitats have been achieved. Effectiveness scores for multiple objectives were then weighted and combined to produce overall effectiveness for each species or habitat. Cost data for relevant SRDP and other scheme measures were apportioned to our study species and habitats. There was a wide variation in cost per unit of effectiveness both across and within species and habitats, e.g. Hazel gloves fungus cost-effectiveness was £3,286 per unit whilst Black grouse ranged between £112k and £4m. These results reflected both levels of funding and effectiveness; also the often wide variation in assessment of effectiveness can be linked to vague objectives and lack of monitoring. We also considered impacts on wider ecosystem services which found that there are often broader benefits from biodiversity measures that should be considered. |
| Keywords: | Agricultural and Food Policy, Environmental Economics and Policy, International Development, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:169713&r=all |
| By: | Giovanni Marin (CERIS-CNR, National Research Council of Italy, Milan.); Alberto Marzucchi (CERIS-CNR, National Research Council of Italy, Milan.); Roberto Zoboli (CERIS-CNR, National Research Council of Italy, Milan.) |
| Abstract: | Eco-innovation is an explicit aim of major EU policy strategies. Many environmental policies de facto require firms to eco-innovate to comply with policy requirements, while the overlap between policy-driven and market-driven eco-innovation strategies is increasingly important for many firms. Barriers to eco-innovation can then emerge as a critical factor in either preventing or stimulating EU strategies, policy implementation, and 'green strategies' by firms. In this paper, we propose a taxonomy of EU SMEs in terms of barriers to eco-innovation. The aim is to discriminate among SMEs on how they differ in terms of perception of barriers and engagement in environmental innovation, thus highlighting the need to look at eco-innovation barriers in relation to firms' attitudes, technological and organizational capabilities, and strategies. We identify six clusters of SMEs. These clusters include firms facing 'Revealed barriers', 'Deterring barriers', 'Cost deterred' firms, 'Market deterred' firms, 'Non eco-innovators' and 'Green champions'. The clusters show substantial differences in terms of eco-innovation adoption. We show that our proposed taxonomy has little overlap with sector classifications. This diversity should be taken into account for successful environmental innovation policies. |
| Keywords: | eco-innovation, barriers to innovation, firm behaviour. |
| JEL: | O33 Q55 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:0614&r=all |
| By: | Nathalie Bréda (UMR 1137 INRA UL, Forest Ecology and Ecophysiology,); Marielle Brunette (Laboratoire d'Economie Forestière, INRA - AgroParisTech) |
| Abstract: | In this paper, we tackle the reduction of rotation from an economic perspective. In a costbenefit framework, we look at the impact of such a reduction on the forest economic value. We concentrate on a Douglas-fir plantation with rotation of 55 years and we wonder about the relevance to reduce to 40 years. We consider the role of climate change (through an increasing drought risk), the role of site fertility and temporal horizon. We also conduct sensitivity analysis on the discount rate and introduce fertilization overcost needed to sustain productivity in shorter rotation. We compare, from an economic point of view, three different adaptation strategies: absence of adaptation (i.e. sylviculture as usual), immediate adaptation and a delayed one. In our case study, the best option for the forest owner in terms of economic return is the absence of adaptation, after it is to delay the adaptation by one rotation and finally to adopt immediate adaptation. However, we also prove that such a trend should be reversed from a damage threshold. Then, with a loss of volume superior to 28% in case of drought event occurrence, an immediate adaptation allows a better economic return than the absence of adaptation. This result seems to suggest that the reduction of rotation may be an adaptation tool for vulnerable stands. |
| Keywords: | adaptation, climate change, cost-benefit analysis, drought, risk of decline, rotation, forest. |
| JEL: | Q54 Q23 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:lef:wpaper:2014-03&r=all |
| By: | Liesivaara, Petri; Myyrä, Sami |
| Abstract: | Crop insurance markets are exposed to unpredictable weather conditions. Yield risks are systemic in nature, and public intervention is often a necessity for the functioning private crop insurance markets. Climate change is expected to increase catastrophic weather events and yield volatility. This paper addresses the question how government actions related to extreme weather events affect the demand and farmers willingness to pay for crop insurance products. The analysis is based on farmers’ stated preferences with split data approach. Our results reveal that farmers’ willingness to pay for crop insurance was different when government disaster relief was possible compared to the situation where disaster relief was not possible. Results show that possibility for disaster relief payments in catastrophic event will lead to extensive misuse of taxpayers’ money if crop insurance premiums are subsidized simultaneously. |
| Keywords: | disaster relief, crop insurance, choice experiment, willingness to pay, Crop Production/Industries, Demand and Price Analysis, Environmental Economics and Policy, Q12, Q18, G22, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170520&r=all |
| By: | Dillon, Emma Jane; Hennessy, Thia; Buckley, Cathal; Donnellan, Trevor; Hanrahan, Kevin; Moran, Brian; Ryan, Mary |
| Abstract: | The concept of sustainability is one of the forefront issues in global agricultural production at present, given mounting pressure to increase food production in both a socially responsible and environmentally friendly way. From an Irish perspective the sustainable intensification of agriculture is of particular relevance given ambitious targets to increase milk production by 50 percent by 2020, in the context of European milk quota removal. Alongside this, environmental targets may be specified, meaning that expansion would have to be achieved in a sustainable way. To evaluate dairy farm-level sustainability a series of indicators are developed here using Teagasc National Farm Survey FADN (Farm Accountancy Data Network) data for Ireland from 2012. Three dimensions, reflecting the multifaceted nature of sustainability (economic, environmental and social) are considered. Given the environmental challenges inherent in the sustainable intensification of agriculture, it is encouraging to observe that the more intensive, top performing farms (in an economic sense) emit relatively less greenhouse gases when compared to their less intensive counterparts. Conversely, the better performing farms in economic terms tend to have higher nitrogen surplus per hectare on average. This is consistent with their higher rates of production intensity but poses a challenge in terms of sustainable expansion. That said this analysis demonstrates that the nitrogen use efficiency of milk production is positively correlated with economic performance, with more intensive farms producing relatively more milk per kg of nitrogen surplus. From a social perspective demography also tends to be correlated with economic performance. These indicators allow for the continued assessment of the sustainability status of Irish farming. |
| Keywords: | Sustainable intensification, Sustainability indicators, Dairy quota removal, Agribusiness, Environmental Economics and Policy, International Relations/Trade, Livestock Production/Industries, Production Economics, Q1, Q5, Q18, Q56, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:169740&r=all |
| By: | Francesco Silvestri (Dipartimento di Economia e Management, Università di Ferrara.) |
| Abstract: | The article focuses on the European Union Municipal Waste (MW) industry, exploring the effects of the conjoint implementation of Self Sufficiency Principle and of Proximity Principle (SSP/PP), that force local community to divert MW in the same district where it is generated. Since the num-ber of disposing facilities allowed to operate in a district is regulated by (regional) public planning, forbidding through SSP/PP the opportunity to divert MW outside the district reduces the degree of competition in the whole sector. The rationale for a rule that denies a pillar of EU thinking such as competition policy seems to be to limit the end-of-the-pipe disposal of MW, and to favour the alternative strategy of selected collection and reuse-recycling. Setting an Industrial Organization model and solving it through backward induction, we show that in facts any increased competition in the industry leads to higher environmental externality, but even that the a compensation scheme from gainers to losers would be for effective than SSP/PP. This is true for any consistent value of the relevant variables, apart the case when the marginal external cost is over a specific threshold; in that unique case, the use of SSP/PP as a command and control environmental standard is justified. |
| Keywords: | EU Regulation, solid waste, oligopoly, environmental externalities. |
| JEL: | D21 H41 O33 Q53 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:1114&r=all |
| By: | Jens Horbach (University of Applied Sciences, Augsburg.) |
| Abstract: | Eco-innovations lead to less environmental impacts or to a reduction of energy use and are therefore crucial for climate protection. Recently, the determinants of eco-innovation activities have been widely explored for single countries but there is still a lack of country comparisons mainly because of data restrictions. In 2009, a special module on eco-innovation has been included in the Community Innovation Survey (CIS) allowing a comparison of the determinants of eco-innovation in 19 different European countries. Our analysis especially focuses on Eastern European transformation countries because the determinants of eco- innovation in these countries have not yet been systematically analyzed. Concerning the introduction of eco-innovation, the econometric analysis shows that regulation activities seem to be more important for Eastern European countries. This is especially the case for 'traditional fields'such as air, noise, soil, water, recycling or dangerous substances. Except energy saving measures, environmentally related subsidies seem to be quantitatively more important for the Eastern European countries pointing to the lower financial performance of the respective firms. Furthermore, Eastern European countries are more relying on competitors and external R&D as information sources indicating a technology transfer from West to East. |
| Keywords: | eco-innovation, probit models, country analysis. |
| JEL: | Q55 O33 C25 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:0714&r=all |
| By: | Dachary-Bernard, Jeanne; Rambonilaza, Tina; Lemarié-Boutry, Marie |
| Abstract: | We develop a hedonic price model on the Gironde estuary (south of France) in order to test the impact of vulnerability to flooding on land prices. The original contribution of our analysis relies on distinguishing the respective impact of two non-structural measures on land prices - the preventive strategy consisting in a flood hazard zoning and the curative response to flood events consisting in orders for natural disaster to initiate financial compensation. This analysis is conducted on three different segments of land market (agricultural, vineyards and residential segments). We pay a particular attention to the respective importance of attractiveness factors from vulnerability ones to explain land price. We use a two-step method to estimate the model, starting with a semi-parametric model (based on the distance to the estuary) followed by a feasible generalized spatial two-stage least squares (FGS2SLS) with which we correct the model from spatial autocorrelation and endogeneity. Our main results indicate that both zoning measure and institutional response to vulnerability to flooding have a significant impact on prices, but in an opposite direction. We discuss the policy implications related to flooding prevention in regards to land use changes. |
| Keywords: | vulnerability to flooding, land prices, hedonic pricing method, Demand and Price Analysis, Environmental Economics and Policy, Land Economics/Use, Q54, R21, Q15, C31, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:169761&r=all |
| By: | Schaller, Lena; Kantelhardt, Jochen; Fedrigotti, Valérie Bossi; Targetti, Stefano; Viaggi, Davide; Ariaza, Manuel; Bal, Tufan; Giray, F. Handan; Häfner, Kati; Kart, Çağla Örmeci; Majewski, Edward; Malak-Rawlikowska, Agata; Nikolov, Dimitre; Paoli, Jean-Christophe; Piorr, Annette; Ungaro, Fabrizio; Verburg, Peter; Villanueva, A.J.; Zanten, Boris van; Zasada, Ingo |
| Abstract: | Agricultural landscapes are important elements of European culture. There is an increasing recognition that agricultural landscapes represent economic assets; not only because of the production of agricultural commodities, but also by offering significant opportunities for the socioeconomic development of rural areas. However, in literature there is no clear evidence of which causal relationships exist between the valorisation of landscapes and the creation of socioeconomic benefits. The objective of this paper is to assess causal connections between actors, the goods provided in agricultural landscapes, the socioeconomic benefits created by these goods and the contribution of such benefits to regional competitiveness, using an Analytical Network Process supported by qualitative stakeholder validation. Network evaluation is done on basis of a stakeholder panel exercise conducted in 9 rural European study regions, which are all coping with different basic natural and social conditions. The results show, that various elements impact on the system of landscape valorisation. It can be seen that agricultural production still plays a key role in the relations between landscape and rural development; however the exercise also shows, that public goods lead to socioeconomic benefits and that differing regional conditions influence the importance of single elements playing a role in the system. |
| Keywords: | Analytical Network Process, Agricultural Landscape, Landscape valorisation, Ecosystem Services, Private and Public goods, Regional competitiveness, Agricultural and Food Policy, Community/Rural/Urban Development, Environmental Economics and Policy, Land Economics/Use, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170370&r=all |
| By: | Giacomo Pallante (Department of Economics and Finance, University of Rome Tor Vergata, Via Columbia 2, Rome, Italy.); Adam Drucker (Bioversity International, Via dei Tre Denari 472, Maccarese, Italy.) |
| Abstract: | Through the implementation of a choice experiment among Nepalese urban consumers, this paper aims to evaluate the effectiveness of a niche product development as market-oriented instrument for the conservation of endangered crops landraces. We compare establisheddiscrete choice models (conditional logit, random parameter logit and latent class) with the novel generalized multinomial logit model in WTP space to account for the preference and the scale heterogeneity effect on the WTP for the finger millet crop. The estimations are utilized to evaluate the impact that a potential price premium has on local rural farmers’ opportunity costs of cultivating the finger millet. Results confirm that, by controlling for heterogeneity, there are segments of population with a WTP that ensures an efficient increase in FM area cultivated. Further, the success of the niche market can attract public investments on the development and conservation of the entire stock of neglected and underutilized local species thereby safeguarding the related agrobiodiversity ecosystem services. |
| Keywords: | Agricultural biodiversity, niche market,Nepal, choice experiment, scale heterogeneity, WTP. |
| JEL: | Q18 Q21 Q26 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:1414&r=all |
| By: | Massimiliano Corradini (Dipartimento di Economia, Università di Roma Tre); Valeria Costantini (Dipartimento di Economia, Università di Roma Tre and SEEDS - Sustainability Environmental Economics and Dynamic Studies.); Massimiliano Mazzanti (Dipartimento di Economia e Management, Università di Ferrara and SEEDS - Sustainability Environmental Economics and Dynamic Studies.); Susanna Mancinelli (Dipartimento di Economia e Management, Università di Ferrara and SEEDS - Sustainability Environmental Economics and Dynamic Studies.) |
| Abstract: | This paper develops a theoretical model in order to study how investment decisions in innovation taken by a single agent are influenced by environmental externalities produced by investment decisions taken by other agents. The model acts in a dynamic framework, where knowledge stock represents the capital good on which investment decisions are taken over time. Knowledge stock is considered as an impure public good which results in both public and private benefits. We first show that the reaction function between one representative agents' investments in innovation and the other agents' investments in the public characteristic of the impure public good has a positive slope under general conditions. We also find that its sensitiveness is affected by the elasticity of substitution in the benefit function as well as by the degree of complementarity between public and private characteristics. |
| Keywords: | impure public good, environmental externality, innovation. |
| JEL: | D21 H41 O33 Q53 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:0814&r=all |
| By: | CEMBALO, Luigi; PASCUCCI, Stefano; TAGLIAFIERRO, Carolina; CARACCIOLO, Francesco |
| Abstract: | The topic of integration and development of sustainable chains has lately gained much attention in the academia debates. In particular, how to manage integration in the bio-energy chains is discussed. Integration is a process of progressive dependence among different actors willing to coordinate processes of innovation. This dynamic is generated by the interaction of individuals willing to start up collective action. The effectiveness of a collective action depends on the number of formal norms developed by collective contracts. This paper tackles these issues considering the specific case study of a collective action in a bio-energy chain. It focuses on the decision-making process of farmers on whether to join or not a collective action, analysing their trade-offs over the attributes of collective contracts. The empirical study was conducted in an area in Southern Italy, most affected by soil erosion problems. A stated preference model was implemented where respondents were asked to choose between alternative collective contracts with varying attribute levels to start biomass cultivation. Two hundreds face-to-face questionnaires were administered to farmers in September-October 2013. First results show that participation is mainly influenced by minimum price guaranteed, contract length, and re-negotiation before the end of a contract. |
| Keywords: | Agro-biomass, Choice Modelling, Contract farming, Soil erosion mitigation, Valuing contract attributes, Agribusiness, Research and Development/Tech Change/Emerging Technologies, Resource /Energy Economics and Policy, D71, D86, O13, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170481&r=all |
| By: | Marielle Brunette (Laboratoire d'Economie Forestière, INRA - AgroParisTech); Stéphane Couture (INRA, UR 875 Applied Mathematics and Computer Science laboratory) |
| Abstract: | In this paper, we propose to analyse the choice of risk management activity made by a non-industrial private forest owner who derives utility from consumption and from the sentimental value of the forest that bears a risk of disaster. We consider a bivariate utility function depending on consumption and sentimental value of forest. In this context, we analyse insurance and/or self-insurance decisions. We show that, under fair premium, full insurance is optimal only if the cross derivative of the utility function equals zero. Under-insurance and over-insurance may also be optimal depending on the sign of this cross derivative. We also show that, under a positive loading factor, optimal partial insurance is validated only if the cross derivative is positive; otherwise full insurance may be optimal even with a loading insurance. We also observe that risk aversion increases the level of insurance demand and selfinsurance activity, extending this standard result obtained with an univariate utility function to a bivariate utility function. Moreover, when the forest owner can simultaneously insure and invest in self-insurance activity, full insurance is never optimal if the cross derivative is positive. Finally, we prove that insurance and selfinsurance may be substitutes, and if preferences are separable and exhibit decreasing absolute risk aversion, then insurance and self-insurance are always considered as substitutes. |
| Keywords: | Forest management, insurance, self-insurance, bivariate utility, risk. |
| JEL: | D81 Q26 Q23 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:lef:wpaper:2014-01&r=all |