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on Environmental Economics |
| By: | ZhongXiang Zhang (School of Economics, Fudan University) |
| Abstract: | China has gradually recognized that the conventional path of encouraging economic growth at the expense of the environment cannot be sustained. It has to be changed. This article focuses on ChinaÕs efforts towards energy conservation and environmental quality. The article discusses a variety of programs, prices, market-based instruments, and other economic and industrial policies and measures targeted for energy saving and pollution cutting, and the associated implementation and reliability issues. The article ends with some concluding remarks and recommendations. |
| Keywords: | energy saving, environmental quality, low-carbon development, power generation, energy prices; market-based instruments, economic policies, industrial policies, resource taxes, implementation and reliability, China |
| JEL: | H23 H71 O13 O53 P28 Q43 Q48 Q52 Q53 Q54 Q56 Q58 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:een:ccepwp:1407&r=env |
| By: | Warwick J McKibbin; Adele C. Morris; Peter J. Wilcoxen |
| Abstract: | The United States Environmental Protection Agency (EPA) has begun regulating existing stationary sources of greenhouse gases (GHG) using its authority under the Clean Air Act (the Act). The regulatory process under the Act is long and involved and raises the prospect that significant U.S. action might be delayed for years. This paper examines the economic implications of such a delay. We analyze four policy scenarios using an economic model of the U.S. economy embedded within a broader model of the world economy. The first scenario imposes an economy-wide carbon tax that starts immediately at $15 and rises annually at 4 percent over inflation. The second two scenarios impose different (and generally higher) carbon tax trajectories that achieve the same cumulative emissions reduction as the first scenario over a period of 24 years, but that start after an eight year delay. All three of these policies use the carbon tax revenue to reduce the federal budget deficit. The fourth policy imposes the same carbon tax as the first scenario but uses the revenue to reduce the tax rate on capital income. We find that by nearly every measure, the delayed policies produce worse economic outcomes than the more modest policy implemented now, while achieving no better environmental benefits. |
| Keywords: | fiscal policy, carbon tax, general equilibrium |
| JEL: | Q54 H2 E17 |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2014-49&r=env |
| By: | Jean Chateau; Rob Dellink; Elisa Lanzi |
| Abstract: | This document provides a detailed technical description of the ENV-Linkages model. The OECD ENV-Linkages Computable General Equilibrium (CGE) model is an economic model that describes how economic activities are inter-linked across several macroeconomic sectors and regions. It links economic activity to environmental pressure, specifically to emissions of greenhouse gases (GHGs). The links between economic activities and emissions are projected for several decades into the future, and thus shed light on the impacts of environmental policies for the medium- and long-term future. In this paper specific attention is given to the equations that form the core of the model. The version of the model presented here is used for analysis carried out for the OECD Environmental Outlook to 2050 (OECD, 2012). An updated version of the model is expected to play a key role in the new CIRCLE project (OECD, 2013). Ce manuel donne une description détaillée du modèle ENV-Linkages. Le modèle ENV-Linkages de l’OECD est un modèle d’Équilibre Général Calculable (MEGC) qui décrit les relations économiques entre secteurs d’activité, pays et agents économiques. Le modèle associe les émissions de gaz à effet de serre aux différentes activités économiques reproduites. Les liens entre les émissions et les activités économiques sont projetés à un horizon de plusieurs décennies, mettant ainsi en avant les impacts à moyen et long terme des politiques environnementales. L’attention est portée dans ce document sur une description technique des équations sous-jacentes du modèle. La version du modèle présentée est celle utilisée dans les Perspectives de l’environnement à l’horizon 2050 (OECD, 2012). Une version mise à jour du modèle jouera un rôle essentiel dans le nouveau projet CIRCLE (OCDE, 2013). |
| Keywords: | climate change, long-term scenarios, general equilibrium models, scénarios de long-terme, changement climatique, équilibre général calculable |
| JEL: | D58 H23 O41 Q54 Q56 |
| Date: | 2014–06–11 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:65-en&r=env |
| By: | Amisigo, Barnabas A.; McCluskey, Alyssa; Swanson, Richard |
| Abstract: | An assessment of the impacts of projected climate change on water availability and crop production in the Volta Basin and the southwestern and coastal basin systems of Ghana has been undertaken as a component of the impacts and adaptation study for Ghana |
| Keywords: | Ghana, water resources, agriculture, climate change |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2014-033&r=env |
| By: | Douglas Sutherland |
| Abstract: | Since around 2007, the country has been enjoying an “energy renaissance” thanks to its abundant stocks of shale oil and gas. The resurgence in oil and gas production is beginning to create discernible economic impacts and has changed the landscape for natural gas prices in the United States, boosting competitiveness. In order to reap the benefits fully, significant investment is needed. Federal and state governments capture some of the resource rents, but there are potential opportunities to increase taxation and use the revenues to support future well-being. Taxing natural resource rents with profit taxes can be less distortionary than other forms of taxation, though only one state uses this form of tax. Production of shale resources, like other forms of resource extraction, poses a number of challenges for the environment. Respecting demands on water resources requires adequate water rights are in place while state and federal regulators need to monitor the environmental impact of hydraulic fracturing closely and strengthen regulations as needed. Natural gas is a potential “bridge fuel” towards a lower carbon economy, helping to reduce emissions by leading to a substitution away from coal. Flanking measures are desirable to counter natural gas hindering renewables and low prices stymieing innovation. This Working Paper relates to the 2014 OECD Economic Survey of United States (www.oecd.org/eco/surveys/United States). Capital naturel aux États-Unis Les États-Unis possèdent un riche capital naturel. Depuis 2007 environ, le pays connaît une « renaissance énergétique » grâce à ses abondantes réserves de pétrole et de gaz de schiste. Le nouvel essor de la production pétrolière et gazière commence à avoir des effets économiques perceptibles et a changé la situation des prix de l’énergie aux États-Unis, stimulant la compétitivité. Pour tirer pleinement parti de cette évolution, il faudra des investissements significatifs. Le gouvernement fédéral et les États devraient capter une partie de la rente des ressources naturelles et mettre ces recettes au service de l’amélioration du bien-être futur. Alors que la taxation des rentes de ressources via l’impôt sur les bénéfices peut être moins distorsive que d’autres formes de fiscalité, seul un État y a recours. La production de pétrole et de gaz de schiste s’accompagne d’un certain nombre de défis environnementaux. Pour respecter les demandes d’utilisation des ressources en eau, il faut veiller à l’existence de droits sur l’eau appropriés, et les autorités chargées de la réglementation au niveau fédéral et à celui des États doivent surveiller de près les répercussions environnementales de la fracturation hydraulique et renforcer la réglementation autant que nécessaire. Le gaz naturel peut être une « énergie relais » dans la transition vers une économie sobre en carbone et contribuer à réduire les émissions en entraînant le remplacement du charbon. En l’absence d’une action concertée, il y a toutefois un risque que le marché de l’énergie se reporte de nouveau sur le charbon en cas d’épuisement des réserves de gaz naturel ou de modification des prix relatifs. Des mesures d’accompagnement seraient souhaitables pour éviter que le gaz naturel freine le développement des énergies renouvelables et que la faiblesse des prix paralyse l’innovation. Ce Document de travail se rapporte à l'Étude économique de l'OCDE de États-Unis 2014 (www.oecd.org/eco/etudes/Etats Unis). |
| Keywords: | government policy, hydrocarbon resources, resource taxation, energy, resource booms, air and water pollution, impôts sur les ressources, énergie, ressources en hydrocarbures, pollution de l'air et de l'eau, boom des ressources, politiques publiques |
| JEL: | H25 Q33 Q4 Q53 Q58 |
| Date: | 2014–07–21 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1147-en&r=env |
| By: | Massimiliano Mazzanti (Dipartimento di Economia e Management, Università di Ferrara and SEEDS - Sustainability Environmental Economics and Dynamic Studies.); Ugo Rizzo (Dipartimento di Economia e Management, Università di Ferrara.) |
| Abstract: | This paper investigates, from ex ante perspectives, potential techno- organisational dynamics aimed at reducing GHG emissions in the EU by 2030 and 2050. We take a qualitative view by exploiting interviews with representatives from principal manufacturing sectors in the EU. The novel value of this analysis is in its focus on 'sectors', which, following neo-Schumpeterian theory, are key 'players' in the technological domain. From a conceptual point of view, we mainly refer to the integrated concepts of sector and national systems of innovation which have consolidated into innovation-oriented evolutionary theory: The EU is characterized by national sector specialisations that emerge from historical developments and markets effects, but also from industrial, innovation and environmental policy effects. In this way this work complements more consolidated quantitative econometric and modelling based analyses, as it presents sector-specific techno-organisational options to help reach the decarbonisation targets. We assess the feasibility of those targets from technological and economic perspectives: specific emphasis is put on the smooth or 'radical' change-driven transition towards a greener economy. Both market and policy factors are considered. The assessment of experts' qualitative responses, together with main outcomes from the literature, shows that heavy industrial sectors share some similarities but also key distinctions in relation to their past and future responses to market and policy dynamics. Their specificities should be taken into consideration when defining the specific design of the future EU policy package for energy efficiency and CO2 abatement at EU and national levels. |
| Keywords: | techno-organisational change, climate change, EU 2030 2050 targets, sectors, eco-innovations. |
| JEL: | L52 O33 Q58 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:0914&r=env |
| By: | Ben McKay (IPC-IG); Ryan Nehring (IPC-IG) |
| Abstract: | Global poverty and hunger are most prevalent where food is actually being produced?in rural areas. Roughly 70 per cent of the 1.4 billion extremely poor people in the world live in rural areas (IFAD, 2010). The increasing volatility in food prices, erratic effects of global climate change, and the increasing scarcity of natural resources present new and immediate dynamic challenges for agricultural development. We can no longer attempt to address problems with a one-track approach, as was the case with Green Revolution policies, by solely focusing on increasing yield production. For too long, agricultural policies have been geared towards increasing productivity without taking into account the associated social and environmental impacts which are equally, if not more, important. A sustainable food system must consider the economic, social and environmental impacts of its production, consumption and distribution to ensure its economic viability, social and cultural inclusivity and environmental sustainability. Linking these three key tenets to agricultural policy is rarely done, as it requires valuing intangibles such as local culture, health and the environment in the context of a food production system. (...) |
| Keywords: | Sustainable Agriculture: An Assessment of Brazil?s Family Farm Programmes in Scaling Up Agroecological Food Production |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:ipc:wpaper:123&r=env |
| By: | Randy Caruso; Raphaël Jachnik |
| Abstract: | The paper reviews a number of commercial and public data sources to examine their potential for increasing coverage and understanding of the volume and characteristics of private climate finance beyond renewable energy projects. Such information is needed to assess progress towards the global transition to low-carbon, climate-resilient economies, as well towards the fulfilment of international commitments by developed countries under the United Nations Framework Convention on Climate Change. The data sources investigated in this analysis are evaluated across four areas relating to their: (i) use of sectoral classification systems; (ii) coverage of private finance transactions and instruments; (iii) definitions and methods for categorising finance as private and identifying its geographic origin; and (iv) data access restrictions and methodological transparency. To provide a frame of reference, the paper distils corresponding definitions and methodologies used by key known data sources for tracking climatespecific finance as well as investments and finance more broadly... |
| JEL: | C81 F21 F53 G39 O16 O19 Q56 |
| Date: | 2014–07–08 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:69-en&r=env |
| By: | Pascal Da Costa (LGI - Laboratoire Génie Industriel - EA 2606 - Ecole Centrale Paris); Wenhui Tian (LGI - Laboratoire Génie Industriel - EA 2606 - Ecole Centrale Paris) |
| Abstract: | In order to avoid dangerous climate change, the Intergovernmental Panel on Climate Change has suggested that the increase in global temperature should be limited to under 2°C by the end of this century. In response to this objective, many countries have set up varied mitigation targets for CO2 emissions, which reflect their own specific situations. In this article, scenarios for CO2 emissions up to 2050 are set up for three representative countries: the United States of America, France and China. We compare these scenarios to Business-as-Usual scenarios in the framework of a sectoral-emission model. This model establishes the feasibility of the scenarios and targets, by dividing emissions into three main sectors: the power sector, the transport sector and others. The model, based on STIRPAT modeling and Support Vector Regressions, includes three major types of technical improvements: hybrid vehicles, energy-structure changes and energy-efficiency improvements. Governmental targets prove to be stricter than the 2°C scenario for the US and France, while the governmental target for China is more tolerant than the 2°C scenario, taking economic development into account. The article also shows that the energy mix could remain unchanged for electricity production with the implementation of Carbon Capture and Storage technology in order to hit the government target in China, and the 2°C objective in the US. Otherwise, these countries would have to reduce their share of coal in the energy mix to under 20%. In the meantime, half of traditional vehicles should be replaced by hybrid vehicles, and energy efficiency has to be improved by over 50% to achieve the targets of all the three countries. |
| Keywords: | STIRPAT Model; Support Vector Regression; CO2-Emission Scenarios |
| Date: | 2014–07–22 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01026302&r=env |
| By: | Matthew A. Cole; Robert J.R. Elliott; Eric Strobl |
| Abstract: | We examine Africa’s increasing reliance on hydropower in light of climate change induced variations in rainfall and the potential power outages that may result. We use a continent wide riverflow model and IPPC climate change scenarios and show that current plans for African dam building are fairly well matched with river-flow predictions so that fears that international donors and national governments are making a series of expensive and environmentally damaging investments may be overstated. However, predictions of an increase in extreme events and reduced rainfall for certain countries means there are still viability concerns for certain planned hydropower investments. |
| Keywords: | Hydropower, Climate change, Africa, Energy |
| Date: | 2014–07–24 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-454&r=env |
| By: | Pegels, Anna; Lütkenhorst, Wilfried |
| Abstract: | In this paper, we address the challenge of Germany’s energy transition (Energiewende) as the centrepiece of the country’s green industrial policy. In addition to contributing to global climate change objectives, the Energiewende is intended to create a leading position for German industry in renewable energy technologies, boost innovative capabilities and create employment opportunities in future growth markets at the least possible cost. The success in reaching these aims, and indeed the future of the entire concept, is hotly debated. The paper aims to provide an up-to-date assessment of what has become a fierce controversy by comparing solar photovoltaic (PV) and wind energy along five policy objectives: 1) competitiveness, 2) innovation, 3) job creation, 4) climate change mitigation, and 5) cost. We find mixed evidence that Germany reaches its green industrial policy aims at reasonable costs. Wind energy seems to perform better against all policy objectives, while the solar PV sector has come under intense pressure from international competition. However, this is only a snapshot of current performance, and the long term and systemic perspective required for the energy sector transformation suggests a need for a balanced mix of a variety of clean energy sources. |
| Keywords: | Green industrial policy; renewable energies; Germany |
| JEL: | O3 O31 O38 Q2 Q42 Q48 Q57 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:57827&r=env |
| By: | Juana, James S. |
| Abstract: | Botswana has serious environmental problems which, if not addressed, will undermine the attainment of sustainable economic development. This study attempts to determine what aid flows have actually been doing with regard to the environment in Botswana. Th |
| Keywords: | aid flow, development expenditure, environmental issues, sustainable development |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2014-007&r=env |
| By: | Paula C. Pereda; Tatiane A. de Menezes; Denisard Alves |
| Abstract: | Climate-sensitive health problems kill millions every year and undermine the physical and psychological well-being of millions more. To identify the climate impacts on dengue risk in Brazil, a comparative case study is used based on the synthetic controls approach. The South and Northeast regions of Brazil are compared to the rest of the country in order to identify those impacts. The results suggest that dengue is more prevalent in warmer regions, but the humidity conditions and amount of rainfall seem fundamental for increase of the diseases prevalence in temperate climate regions or drier tropical regions of the country. On the other hand, the increase in rainfall in the rainiest tropical areas could diminish the diseases prevalence, as standing water accumulations might be washed away. Therefore, due to expected climate changes in the future, the dengue fever distribution in the country might change, with the disease migrating from the north to the south. Public policy's role in minimizing these effects in the country should be focused on anticipating the proper climate conditions for dengue incidence by using integrated actions among local authorities. |
| Keywords: | Climate Change, Health Policy, Human health, Dengue fever, Synthetic control method, Climate change impacts on health |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:85876&r=env |
| By: | Jaime de MELO (Ferdi); Mariana VIJIL (French DG Treasury) |
| Abstract: | At the Davos forum of January 2014, a group of 14 countries pledged to launch negotiations on liberalising trade in ‘green goods’ (also known as`environmental goods’(EGs)), focussing on the elimination of tariffs for an ‘APEC list’ of 54 products. The paper shows that the ‘Davos group’, with an average tariff of 1.8%, has little to offer as countries have avoided submitting products with tariffs peaks for tariff reductions. Even if the list were extended to the 411 products on the ‘WTO list’, taking into account tariff dispersion, their tariff structure on EGs would be equivalent to a uniform tariff of 3.4%, about half the uniform tariff-equivalent for non EG products. Enlarging the number of participants to low-income countries might be possible as, on average, their imports would not increase by more than 8 percent. However, because of the strong complementarities between trade in Environmental Goods and trade in Environmental Services, these should also be brought to the negotiation table even though difficulties in reaching agreement on their scope are likely to be great. |
| JEL: | F18 Q56 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:fdi:wpaper:1637&r=env |
| By: | Arndt, Channing; Schlosser, Adam; Strzepek, Kenneth |
| Abstract: | Malawi confronts a development imperative in a context of rising temperatures and deep uncertainty about precipitation trends. We evaluate the implications of climate change for overall growth and development prospects to 2050. We focus on three impact ch |
| Keywords: | Malawi, climate change, growth, development |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2014-013&r=env |
| By: | Henrik Braconier; Giuseppe Nicoletti; Ben Westmore |
| Abstract: | This paper identifies and analyses some key challenges that OECD and partner economies may face over the coming 50 years if underlying global trends relating to growth, trade, inequality and environmental pressures prevail. For example, global growth is likely to slow and become increasingly dependent on knowledge and technology, while the economic costs of environmental damages will mount. The rising economic importance of knowledge will tend to raise returns to skills, likely leading to further increases in earning inequalities within countries. While increases in pre-tax earnings do not automatically transform into rising income inequality, the ability of governments to cushion this impact may be limited, as rising trade integration and consequent rising mobility of tax bases combined with substantial fiscal pressures may hamper such efforts. The paper discusses to what extent national structural policies can address these and other interlinked challenges, but also points to the growing need for international coordination and cooperation to deal with these issues over the coming 50 years. Défis politiques pour les 50 prochaines années Ce document passe en revue et analyse quelques-uns des problèmes clés auxquels les pays de l’OCDE et leurs partenaires pourraient être confrontés dans les 50 prochaines années si les grandes tendances mondiales se confirment en matière de croissance, d’échanges, d’inégalités et de pressions environnementales. Par exemple, la croissance mondiale va vraisemblablement ralentir et devenir de plus en plus tributaire du savoir et de la technologie. Les coûts économiques des dommages causés à l’environnement vont augmenter. L’importance croissante du savoir dans l’économie aura en général pour effet d’accroître le rendement de la formation, ce qui devrait accentuer les inégalités de revenu au sein des pays. Ces inégalités n’augmenteront pas automatiquement avec le revenu avant impôt, mais les pouvoirs publics auront peut-être du mal à les atténuer, en raison de l’intégration commerciale et de la mobilité croissante des assiettes fiscales, ainsi que des fortes pressions budgétaires auxquels ils sont soumis. Ce document examine les solutions que les politiques structurelles nationales peuvent offrir à ces problèmes et à un certain nombre d’enjeux connexes ; il souligne également le besoin croissant d’une coordination et d’une coopération internationales face à ces questions au cours des 50 prochaines années. |
| Keywords: | tertiary education, immigration, technological change, structural reforms, climate change, growth, income distribution, environmental damages, projections, global economy, inequality, coordination, fiscal consolidation, interdependence, économie mondiale, enseignement supérieur, dégâts environnementaux, réformes structurelles, interdépendance, coordination, immigration, répartition des revenus, changement climatique, inégalité, changement technologique, prévisions, croissance, consolidation fiscale |
| JEL: | F H I2 I3 J1 O3 O4 Q5 |
| Date: | 2014–07–02 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaab:9-en&r=env |
| By: | Yeung, Timothy |
| Abstract: | This paper presents a cheap-talk one-sender-multiple-receiver model in which audiences freeride on each other in the context of global environmental protections. The sender observes the magnitude of damage of emission, and sends the same message simultaneously to all audiences, who then play a game to determine individual emission level. The sender may find it impossible to credibly send the truth when externality is large enough because of the incentive to correct free-riding behavior. If a private club is established for sharing information, the sender’s information with more countries may not be optimal because the sender is less truthful when the club is larger. |
| Keywords: | Cheap Talk, Externality, Environmental Protections |
| JEL: | D82 H41 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:28291&r=env |
| By: | Fernandez-Cornejo, Jorge; Nehring, Richard; Osteen, Craig; Wechsler, Seth James; Martin, Andrew; Vialou, Alex |
| Abstract: | Pesticide use has changed considerably over the past five decades. Rapid growth characterized the first 20 years, ending in 1981. The total quantity of pesticides applied to the 21 crops analyzed grew from 196 million pounds of pesticide active ingredients in 1960 to 632 million pounds in 1981. Improvements in the types and modes of action of active ingredients applied along with small annual fluctuations resulted in a slight downward trend in pesticide use to 516 million pounds in 2008. These changes were driven by economic factors that determined crop and input prices and were influenced by pest pressures, environmental and weather conditions, crop acreages, agricultural practices (including adoption of genetically engineered crops), access to land-grant extension personnel and crop consultants, the cost-effectiveness of pesticides and other practices in protecting crop yields and quality, technological innovations in pest management systems/practices, and environmental and health regulations. Emerging pest management policy issues include the development of glyphosate-resistant weed populations associated with the large increase in glyphosate use since the late 1990s, the development of Bt-resistant western corn rootworm in some areas, and the arrival of invasive or exotic pest species,such as soybean aphid and soybean rust, which can influence pesticide use patterns and the development of Integrated Pest Management programs. |
| Keywords: | Pesticide trends, herbicides, insecticides, fungicides, corn, soybeans, cotton, potatoes, wheat, Environmental Economics and Policy, Production Economics, |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uersib:178462&r=env |
| By: | Janet Currie; Hannes Schwandt |
| Abstract: | The events of 9/11 released a million tons of toxic dust into lower Manhattan, an unparalleled environmental disaster. It is puzzling then that the literature has shown little effect of fetal exposure to the dust. However, inference is complicated by pre-existing differences between the affected mothers and other NYC mothers as well as heterogeneity in effects on boys and girls. Using all births in utero on 9/11 in NYC and comparing them to their siblings, we show that residence in the affected area increased prematurity, low birth weight, and admission to the NICU after birth, especially for boys. |
| JEL: | I1 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20368&r=env |
| By: | Kimitaka Nishitani (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan); Munehiko Itoh (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan) |
| Abstract: | The purpose of this study is to analyze whether a manufacturer's product innovation in response to environmental standards produces a competitive advantage, as the Porter hypothesis suggests. If a product with environmentally friendly attributes that are innovated in response to environmental standards is preferred in the market, the product can receive a price premium for its attributes. The main findings from our hedonic price regression for refrigerators, using Japanese retail market data during the period 1998–2012, are as follows. First, the attribute-adjusted refrigerator price has decreased drastically in last 15 years, which implies that the fundamental value of "refrigerating" has been commoditized. Second, price premiums are found for products that have been innovated in response to environmental standards to be chlorofluorocarbon (CFC)-free and use energy more efficiently. Third, the price premiums for these attributes show specific trends during this period. A CFC-free product initially received a high price premium; however, the premium decreased and became 0. On the other hand, although an energy-consumption-efficient product did not receive a high price premium initially, the price premium increased every time manufacturers faced new or revised environmental standards. These findings prove that product innovation in response to environmental standards can create a competitive advantage where product commoditization has occurred, and that the trends in the price premiums for environmentally friendly attributes are not unique for CFC-free and energy-consumption-efficient products. |
| Keywords: | Porter hypothesis, Environmental innovation, Hedonic price approach, POS data, CFC-free, Energy-consumption efficiency |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:kob:dpaper:dp2014-30&r=env |
| By: | Jessica Ingenillem (Leuphana University Lueneburg, Germany); Joachim Merz (Leuphana University Lueneburg, Germany); Stefan Baumgärtner (Leuphana University Lueneburg, Germany) |
| Abstract: | We study the determinants and interactions of sustainability and risk management with a cross-sectional dataset on commercial cattle farming in semi-arid rangelands in Namibia. Cattle farmers in Namibia act within a coupled ecological-economic system that is subject to extensive degradation and high environmental risk. Based on survey data, we develop variables for sustainability and risk management within this context, identify their determinants and analyse relevant interactions. Our results show that the ecosystem condition is positively influenced when financial risk management strategies are applied. On-farm risk management, like additional feed for cattle or resting part of the rangeland, and collective risk management through interest groups or governmental support, instead, do not impact on the sustainability of the farm. Risk management itself is predominantly influenced by various risks linked to the farming business and the farmers’ educational background. Furthermore, the gathered experience through operation time on farm decreases the application of on-farm risk management and favours the use of financial and collective risk management. Additionally, collective risk management is influenced by risk preferences, indicating that farmers who are more risk friendly apply forms of joint risk management strategies to a lesser extent. Risk friendliness is also negatively related to the economic sustainability, specified as the ability to sustain the livelihood of the farmer. However, the results show no indication whatsoever that time preferences impact on either sustainability or risk management. |
| Keywords: | cattle farming, ecological-economic system, financial instruments, precipitation, risk management, semi-arid rangelands, sustainability |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:lue:wpaper:304&r=env |
| By: | Mantilla, Cesar |
| Keywords: | Common pool resource experiment, lie aversion, preferences for consistency |
| JEL: | A13 C93 D03 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:tse:iastwp:28316&r=env |
| By: | Sandrine Mathy (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: | Ce texte vise à décrire le positionnement de l'Inde vis-à-vis du changement climatique dans le but de cerner les marges de manœuvres existantes dans la contribution de l'Inde à l'atteinte d'un accord international lors de la COP 21 à Paris en 2015. Les première et seconde parties montrent respectivement les défis d'une Inde à la fois fortement exposée aux impacts du changement climatique et dont le développement économique est rendu dépendant du développement résilient d'un secteur énergétique. La troisième partie explique en quoi le positionnement historique de l'Inde dans les négociations internationales sur les questions d'équité a bloqué l'émergence de politiques climatiques en Inde jusqu'à 2007. Néanmoins, depuis la préparation de la Conférence de Copenhague, l'Inde s'est engagée dans des politiques climatiques que nous décrivons. Enfin, nous décrivons en quoi la position actuelle de l'Inde dans les négociations internationales en amont de la COP21 s'est récemment refermée. |
| Keywords: | INDE ; CHANGEMENT CLIMATIQUE |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00995050&r=env |
| By: | Cecilia Bellora (THEMA and INRA - UMR Economie Publique); Jean-Marc Bourgeon (Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X, INRA - UMR Economie Publique) |
| Abstract: | Production risks in agriculture due to biotic elements such as pests create biodiversity effects that impede productivity. Pesticides reduce these effects but are damaging for the environment and human health. When regulating farming practices, governments weigh these side-effects against the competitiveness of their agriculture. In a Ricardian two-country setup, we show that free trade results in an incomplete production specialization, that restrictions on pesticides are generally more stringent than under autarky and that trade increases the price volatility of crops produced by both countries and some of the specialized crops. If biodiversity effects are large, the price volatility of all crops is larger than under autarky. |
| Keywords: | agricultural trade, food prices, agrobiodiversity, pesticides |
| Date: | 2014–07–29 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01052971&r=env |