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on Environmental Economics |
| By: | Asian Development Bank (ADB); (East Asia Department, ADB); ; |
| Abstract: | This regional study includes the People’s Republic of China, Japan, the Republic of Korea, and Mongolia and examines how strategies for adapting to climate change up to 2050 can be combined with measures to reduce greenhouse gas emissions in East Asia. Besides discussing climate model results for costs of adaptation in infrastructure, coastal protection, and agriculture, the study estimates costs for sector-specific mitigation options and the total abatement potential for 2020 and 2030. Long-term strategies for addressing the impacts of climate change in East Asia are explored with a focus on the linkages between adaptation and mitigation taking account uncertainty about key climate variables. Finally, it discusses opportunities for enhancing the effectiveness of some critical climate change policies such as regional carbon markets. |
| Keywords: | economics, climate change, east asia, china, japan, korea, mongolia, carbon markets, CO2 emissions, climate change adaptation, climate change mitigation, climate policy |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:asd:wpaper:rpt125169-2&r=env |
| By: | Sandrine Selosse; Nadia Maizi |
| Abstract: | Global warming is in essence an economic and political problem. Greenhouse gas (GHG) emissions contributing to global warming have the same damaging effect regardless of the country in which they originate. All regions of the world are affected regardless of whether and to what extent they contribute to the problem. Protecting the atmosphere and therefore preventing global warming implies a drastic reduction in total greenhouse gas emissions. However, in the absence of an international agreement on emissions control, countries adopt free-riding behaviours. Each country counts on others to reduce emissions and to incur the resulting abatement cost. The Kyoto Protocol was the first international agreement in which some countries (Annex I to the protocol) committed to emission reduction targets over the period 2008-2012. The protocol’s impact has however been limited, because of a lack of commitments from rapidly growing emerging countries such as China, India and Brazil, and non-ratification by the United States. The challenge of the Copenhagen summit in 2009 was to determine the rules for the post-Kyoto period. It was therefore essential to ensure the ratification of a global agreement on emission reduction targets and to include all major industrialized and emerging countries. Although negotiations during the summit failed to reach a global agreement, in late January 2010 some countries including major emerging nations pledged their commitment to the United Nations Framework Convention on Climate Change (UNFCCC) as part of the Copenhagen Agreement. Emissions control commitments now cover 80% of 2005 global GHG emissions. These pledges occur until 2020 and constitute period 2 of the Kyoto Protocol (2013-2020). The challenge now is to get countries to converge towards a global and multilateral agreement to keep in line with ambitious targets to limit GHG emissions. This is the ultimate aim of the Conference of Parties due to take place in Paris in 2015. While the deadline for the implementation of this agreement is imminent, we propose to discuss the key points to reach these ambitious objectives by 2015. The aim of this study is to analyze different paths of GHG emission mitigation targets and to discuss the future climate regime with the modeling tool TIAM-FR. More precisely, we investigate different coordination schemes for regions pledging to reach GHG mitigation targets in line with 1) commitments occurring according to the Copenhagen Agreement by 2020, 2) an ambitious ultimate and global target by 2050-2100 in line with the IPCC recommendations (AR4 and AR5), and 3) regional assumptions by 2050 according to the group of countries (industrialized, fast developing or developing). Drawing from regional scenarios of carbon constraints, we discuss possible futures for the next climate regime according to the rule of “What might happen if…?” e.g.: Can we reach the 2°C target if developing countries do not contribute to reducing GHG emissions in the future? What could happen if developed countries do not contribute enough to reducing GHG emissions in the future? What are the induced regional energy system costs of these climate scenarios if fast developing countries do not contribute early to reducing GHG emissions in the future? and so on. Our analysis mainly focuses on the effects of these environmental constraints on several indicators such as global and regional GHG emissions, the cost of the climate policy, carbon marginal costs, the evolution of primary energy consumption and the energy mix. This paper compares global efforts of GHG mitigation with the cost of carbon for a variety of climate policies and finally discusses the impact of the development of technologies in the energy mix in 2050. We analyze the environmental and economic impacts of the climate commitments by introducing climate pledges in the bottom-up optimization model TIAM-FR. This linear programming model minimizes the total discounted cost of the world energy system over a long time period under a number of environmental, technological and demand constraints. TIAM-FR, as TIMES family models, depicts the energy system with a detailed description of different energy forms, resources, processing technologies and end-uses, on a Reference Energy System (RES). TIAM-FR is geographically integrated and offers a representation of the global energy system in 15 regions covering the entire world. In each region, TIAM-FR describes the entire energy system with the same level of technological disaggregation. To discuss the climate context of the future climate regime, we considered the Post-Copenhagen pledges for 2020 and made assumptions on the 2050 targets based on each country’s announced political ambitions, expected ambitions or required contributions. We then compared these pledges to a business-as-usual scenario and a global scenario compatible with the UNFCCC ultimate objective of limiting temperature change to 2°C, where all countries are constrained or not to contribute to this global mitigation target. Emission reduction is achieved through technology and fuel substitutions. The optimization results are notably the structure of the energy system, i.e. type and capacity of the energy technologies, energy consumption by fuel, development of emissions, energy trade flows between the regions as well as the required transport capacities and the detailed energy system costs, plus information on the marginal costs of environmental measures such as GHG reduction targets. The various scenarios we investigated include environmental targets for different world regions over the period 2000-2050. We analyze a combination of these scenarios in order to provide a framework for understanding the climate context of the future regime which is expected to be decided in 2015: (1) BASE: World reference scenario without any explicit policy measures on GHG mitigation (2) 2°C scenario: World climate scenario in line with limiting temperature change to 2°C in 2100 (i.e. 50% reduction of GHG emissions by 2050) a. DEVin: With the contribution of developing countries b. DEVout: Without the contribution of developing countries (3) Regional Post-Copenhagen pledges scenario: a. COP+: with an optimistic GHG emission reduction commitment to 2020 for countries that pledged commitments in the Copenhagen Accord b. COP-: with a pessimistic GHG emission reduction commitment to 2020 for countries that pledged commitments in the Copenhagen Accord c. NoDEV: without a GHG emission reduction commitment for developing countries d. DEV30: with a GHG emission reduction commitment of 30% to 2020 compared to a business as usual scenario for developing countries e. DEV15: with a GHG emission reduction commitment of 15% to 2020 compared to a business as usual scenario for developing countries (4) Regional long-term objectives scenario by 2050: according to international convergence and expressed ambitions a. Ind80: with a pessimistic GHG emission reduction commitment to 2050 for industrialized countries b. Ind95: with an optimistic GHG emission reduction commitment to 2050 for industrialized countries (5) 4°C scenario: World climate scenario in line with a temperature change to 4°C in 2100 as feared in the last IPCC Report (AR5, 2013). According to the results from the next IPCC report (expected in 2014), new scenarios will be implemented to bring new elements into the climate context assessment. The previously cited scenarios are analyzed to explore the effects of a possible international coordination on the main environmental and economic indicators. The impacts of different commitment levels under post-Copenhagen and/or global policies can thereby be discussed and provide some understanding on the stakes and issues. The main focus will be, in a first part, on the ambition of the various climate policies regarding GHG emissions at global and regional level. In a second part, we discuss the total cost of these policies, the regional costs of avoided GHG (carbon marginal cost) associated with the different GHG mitigation targets, and finally, the level of ambition of the GHG reduction targets. Indeed, we studied the cost implications of these climate policies. How could this cost be distributed between the different committed regions? Is climate policy through associated targets weighed in the same manner for all regions? In a third part, we extend the analysis on the impact of international climate change strategies to the energy system. Discussions investigate long-term solutions, such as the development of CCS technologies or renewables, in response to a constraint that influences the energy mix. The aim is to assess the plausibility of its fulfillment and to highlight the challenges. As shown for example in figure 1, a strong climate policy in line with the 2°C objective (representing the UNFCCC consensus) requires a global contribution, whether countries are industrialized or developing, or especially fast developing or emerging. After many years of discussion, ambitious targets require commitment to meet the recommended 2°C limitation in temperature increases. However, it is primarily up to industrialized countries to keep their promise of helping countries develop a record of adapting to the impacts of climate change, and nothing is certain as regards the possible level of GHG emission reduction that developing countries will be able to attain or, even, accept to reduce. In terms of cost, a larger contribution from developing countries is less expensive than strong emission mitigation in industrialized countries, as expressed by the decision to allow flexible mechanisms under the Kyoto Protocol (i.e. develop GHG emissions mitigation projects where the carbon abatement cost can be lower). But this is not sufficient. Could we reach an ambitious, and necessary, climate target without the participation of developing countries? However, do developing countries have the capacity to implement policies to reduce emissions given that their priority is development and energy supply? What are the technological possibilities considering the state of development of their energy systems and the evolution of their needs? A key feature of the Copenhagen agreement is the participation of the United States of America and non-Annex I countries, especially China, as they represent a large share of global CO2 emissions. China and the USA are the largest global emitters of CO2 and, without their participation in a climate agreement; the latter cannot really ensure achieving stabilized CO2 concentration and global temperatures. Industrialized countries must provide tools and resources to meet the challenges. If they do not, developing countries, which are the most affected by climate change and the most vulnerable, will not be able to commit to reducing their own GHG emissions. However, it is imperative that these countries promptly consider such mitigation policies, especially China, India and Brazil, because in the near future they will represent the biggest share of global emissions. For example, in 2008 China surpassed Germany in terms of economic wealth, and the United States in terms of emissions of carbon dioxide (CO2). So what will happen if some industrialized countries do not commit to targets? Can they do so? At what cost? Indeed the impact of these countries’ CO2 mitigation targets on global CO2 emissions is essentially long term. Moreover, the relatively high CO2 marginal cost that China has to bear to ensure its 2050 pledge shows that is important for each region to evaluate the costs of its CO2 emission targets and indicates the extent to which they must make a concrete commitment to combating climate change. We studied the cost implications of these climate policies. How could this cost be distributed between the different committed regions? Is climate policy through associated targets weighed in the same manner for all regions? No country can mitigate climate change on its own. International cooperation is needed to tackle the energy-climate problem. However, not only must countries act, but technological progress must also find an adequate response to countries’ ambitions to expand the pool of available (or not) technologies and their mitigation potential. This not only concerns CCS technologies, but also non-fossil energies, like wind, solar, biomass, etc. Thus the question of technological plausibility is also a critical factor for the future international climate regime. Indeed, the carbon constraint response in these scenario analyses is often investments in CCS technologies in order to reach targets of different levels. However, the feasibility of avoiding the required Gt of CO2 emissions by investing in CCS technologies is questionable. Could the potential use of these technologies be enough to satisfy this need? This question of plausibility also concerns renewables. In the total primary energy supply, the shares of renewables, biomass, and alcohols can appear high. Their size might increase significantly with a more stringent target, but this depends on the cost and efficiency of renewable technologies, and their comparability with fossil fuels. Their future technological development is still an uncertain variable that should be taken into account. |
| Keywords: | We study the world energy system under a disaggregation in 15 regions : Africa (AFR), Australia-New Zealand (AUS), Canada (CAN), China (includes Hong Kong, excludes Chinese Taipei; CHI), Central and South America (CSA), Eastern Europe (EEU), Former Soviet Union (includes the Baltic states, FSU), India (IND), Japan (JPN), Mexico (MEX), Middle-East (includes Turkey; MEA), Other Developing Asia (includes Chinese Taipei and Pacific Islands; ODA), South Korea (SKO), United States of America (USA) and Western Europe (EU-15, Iceland, Malta, Norway and Switzerland; WEU). Some results are discussed considering 3 groups of countries: Industrialized, Fast developing countries and developing countries. , Impact and scenario analysis, Energy and environmental policy |
| Date: | 2014–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:006356:7089&r=env |
| By: | Itziar Lazkano; Walid Marrouch; Bruno Nkuiya |
| Abstract: | We examine how adaptation to climate change affects the incentives to ratify international environmental agreements (IEAs). In particular, we study the effects of two aspects on the incentives to join a coalition. First, we analyze cross-country differences in adaptation costs. Second, we investigate the role of carbon leakage. Wefind that the incentives to join IEAs remain unchanged with cross-country differences in adaptation when there is no carbon leakage, while these cross-country differences may strengthen the incentives to join IEAs with leakages. Our results emphasize that policies directed at reducing cost differences and carbon leakage may also affect the success and failure of IEAs. Nous examinons comment l'adaptation au changement climatique influence les incitations à ratifier les accords internationaux environnementaux. En particulier, nous nous intéressons à deux effets liés à l’adaptation sur les incitations à approuver les accords climatiques. Tout d'abord, nous examinons les effets de l’hétérogénéité des coûts d'adaptation à travers les pays. Deuxièmement, nous étudions le rôle du « leakage » entre pays. Nos résultats indiquent que les incitations à ratifier restent inchangées même en présence de l’hétérogénéité dans les coûts d'adaptation quand il n'y a pas de « leakage ». Cependant, l’hétérogénéité entre pays peut accroitre les incitations à ratifier ces accords en présence du « leakage ». Nos résultats soulignent que les politiques visant à réduire la différence des coûts d’adaptation et le « leakage » peuvent influencer le succès ou l'échec des accords internationaux environnementaux. |
| Keywords: | adaptation; environmental agreements; cost differences; carbon leakage, |
| JEL: | Q50 Q54 C72 |
| Date: | 2014–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2014s-29&r=env |
| By: | Karl Steininger; Birgit Bednar-Friedl; Wolf Grossmann; Thomas Schinko |
| Abstract: | Climate policy arrangements of partial regional coverage, as they seem to emerge from the UNFCCC process, might lead to carbon leakage and hence a broad literature has developed to quantify global leakage rates. While most of these analyses, are confined to consider combustion emissions only, Bednar-Friedl et al. (2012b) have pointed out the particular relevance of process emissions for both leakage rates and effectiveness of border carbon adjustment. We use this expanded framework in considering both combustion and process emissions in a multi-sectoral multi-regional Computable General Equilibrium model and analyze the implications of carbon free processinnovations. As a medium-term alternative to border carbon adjustment, we find that such a technological switch, for example in the European steel industry towards low-carbon electrowinning, can effectively reduce global carbon leakage. For border carbon adjustment considerations this implies their setting including a phase-out, such that incentivesfor carbon free innovations are preserved. Note from admin: See full paper Note from admin: See full paper |
| Keywords: | Note from admin: See full paper, Energy and environmental policy, General equilibrium modeling |
| Date: | 2013–06–21 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:004912:5482&r=env |
| By: | Cai, Yongyang; Steinbuks, Jevgenijs; Elliott, Joshua; Hertel, Thomas W. |
| Abstract: | The pattern of global land use has important implications for the world's food and timber supplies, bioenergy, biodiversity and other eco-system services. However, the productivity of this resource is critically dependent on the world's climate, as well as investments in, and dissemination of improved technology. This creates massive uncertainty about future land use requirements which compound the challenge faced by individual investors and governments seeking to make long term, sometimes irreversible investments in land conversion and land use. This study assesses how uncertainties associated with underlying biophysical processes and technological change in agriculture affect the optimal profile of land use over the next century, taking into account the potential irreversibility in these decisions. A novel dynamic stochastic model of global land use is developed, in which the societal objective function being maximized places value on food production, liquid fuels (including bio-fuels), timber production, and biodiversity. While the uncertainty in food crop yields has anticipated impact, the resulting expansion of crop lands and decline in forest lands is relatively small. |
| Keywords: | Climate Change Mitigation and Green House Gases,Environmental Economics&Policies,Climate Change and Environment,Forestry,Environment and Energy Efficiency |
| Date: | 2014–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7009&r=env |
| By: | Zheng Wang; GU Gaoxiang |
| Abstract: | the process-technology progress which is caused by the improvement of the productive technologies can reduce the demands of the intermediate inputs in the productive process, and then reduce the energy demands and the carbon emissions. Thus, to improve the level of process technologies is an important way for the global carbon emission abatement. In this paper, based on Jin (2012)’s model, a general equilibrium model of multi-country-section economy was built. Coupled with the climate system of RICE model, a climate-economy integrated assessment model was built with the interactions between the economic system and the climate system.Coupled with the climate system of RICE model, a climate-economy integrated assessment model was built with the interactions between the economic system and the climate system.Based on this model, the carbon emissions and the energy demands of different countries and sections were studied. The simulated outcomes show that the process-technology progress can bring on early peaks of energy demands and carbon emissions. Under the three different scenarios, China will reach its carbon emission peak at year 2034, 2030, and 2022 respectively. In the more bold scenario 3, the accumulated carbon emission of China can reduce to 93GtC, accomplishing the abatement target of 100GtC. Besides, along with the progress of the process technologies, the developing countries like China and India have larger abatement potentials, which in the sections, the energy section and the service sections have larger abatement potentials. |
| Keywords: | China, US, EU, Japan, India and Russia, Energy and environmental policy, General equilibrium modeling |
| Date: | 2014–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:006356:6910&r=env |
| By: | Sara Proença |
| Abstract: | Energy is a critical factor not only to economic growth and to achieve a less dependent and more competitive economy but also to promote sustainable growth towards to a highly energyefficient, low-carbon economy. Energy-economic-environment interactions therefore play a crucial role in driving the climate change mitigation and growth policies. The evidence of this is, in particular, the recent adoption by the European Union of an integrated climate and energy policy, by defining ambitious targets for 2020: i) cut its greenhouse gas emissions by 20% from 1990 levels (or even 30% in case an international agreement is reached that commits other countries in a similar way), ii) produce 20% of its energy supply from renewable energy sources, and iii) cut energy consumption through improved energy efficiency by 20% – is the so-called 20/20/20 targets under the EU Climate and Energy Package. In this paper we intend to assess the role of renewable energy sources in Portugal´s decarbonisation strategy up to 2020. This question is of practical relevance for national decision–making on climate and energy policies. In our policy simulations, we make use of the Hybrid Bottom-up General Equilibrium Model (HyBGEM) for Portugal – a hybrid multi-sector E3 general equilibrium model formulated as a mixed complementarity problem, which integrates bottom-up activity analysis into a top-down CGE framework through the detailed technological representation of the electricity sector. HyBGEM is numerically implemented as a system of simultaneous non-linear inequalities using MPSGE (Mathematical Programming System for General Equilibrium analysis) as a subsystem within GAMS (General Algebraic Modelling System), and solved by using the PATH solver. Preliminary results suggest that both the imposition of CO2 emissions constraints and the subsidization of renewable power generation technologies through a feed-in tariffs (FITs) system have a similar impact on overall national CO2 emissions. This is an interesting result because it indicates that the decrease of carbon emissions resulting from achieving the national RES-E target for 2020 also meets the national CO2 reduction target. The promotion of renewable electricity generation is therefore crucial in the decarbonisation strategy of the Portuguese economy |
| Keywords: | Portugal, Energy and environmental policy, General equilibrium modeling |
| Date: | 2013–06–21 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:004912:5647&r=env |
| By: | Asian Development Bank (ADB); (East Asia Department, ADB); ; |
| Abstract: | Climate change threatens grassland ecosystems and herders’ livelihoods in Mongolia. Herders depend on pasture and water resources for their livestock, and are thus among the most vulnerable groups to climate change impacts. However, although climate change impacts on grassland ecosystems are measurable, current institutional capacity and financial resources limit implementation of adaptation practices. This publication reviews grassland management and traditional nomadic pastoralism in the local Mongolian context, and identifies potential adaptation strategies and practices, such as rotation and resting of pasture, long-distance migration of animals in fall and/or winter, and reduction of livestock stocking rates. |
| Keywords: | mongolia, grasslands, desertification, climate change, mobile pastoralists, overgrazing, deforestation, herders, nomadic culture, livestock, pasture, adb, asian development bank |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:asd:wpaper:rpt136010&r=env |
| By: | Asian Development Bank (ADB); (Office of the General Counsel, ADB); ; |
| Abstract: | The Government of Pakistan has adopted laws to combat adverse environmental impacts of unsustainable development, but there are several issues that make effective implementation of these laws and adjudication of environmental disputes difficult. This report examines the state of environmental law, adjudication, and implementation in Pakistan, focusing on the provincial environmental protection acts of Pakistan and the institutional design, principles, and procedures provided under the law. It further examines the actual implementation of the law and the case law developed in this area with focus on the court’s interpretation and enforcement of the laws. The report also reviews the curriculum of law schools and judicial academies and suggests the future inclusion of environmental laws in their respective programs. |
| Keywords: | pakistan, punjab, balochistan, environmental law, environmental protection, law schools, environmental prosecution, environmental protection agency, environmental tribunals, green benches, green justice, adjudication, environmental disputes |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:asd:wpaper:rpt135573&r=env |
| By: | Zhu Qianting; Wujing; Wangzheng |
| Abstract: | Using agent-based modeling, this study creates a global carbon trading simulation system, and simulates the global carbon trading market under different scenarioes. To evaluate the effect of quota-based carbon emission permits trading mechanism globally, this article constructs a carbon trading model by using ABS modeling technology, and then develops a global carbon trading system, finally examining the capital flows of carbon trading and its impact on global climate protection. Simulation results shows that :( 1) the results of carbon trading depend on quota allocation. To offset the numerous historic carbon emissions, developed countries such as US would face huge quota deficits in the former scenario. (2) With a decrease in global carbon emission quotas and an increase demand for carbon emissions, the global carbon price will rise in the future.(3) The implementation of carbon trading is helpful for transferring capital mainly from developed countries to developing countries. (4)Under the carbon emission trading process, developed countries will purchase a large number of emissions quotas from developing countries, therefore, the cumulative carbon emissions per capita in developed countries will be still much higher than that in developing countries. (5) In both scenarios, carbon emission trading always increases the global Ramsey utility. |
| Keywords: | China (CN), the US (US), the EU (EU), Japan (JP), the former Soviet Union (FSU), and rest of the world (ROW)., Agent-based modeling, Impact and scenario analysis |
| Date: | 2014–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:006356:6876&r=env |
| By: | Lucas Bretschger (ETH Zurich, Switzerland); Alexandra Vinogradova (ETH Zurich, Switzerland) |
| Abstract: | Climate physics predicts that the intensity of natural disasters will increase in the future due to climate change. One of the biggest challenges for economic modeling is the inherent uncertainty of climate events, which crucially affects consumption, investment, and abatement decisions. We present a stochastic model of a growing economy where natural disasters are multiple and random, with damages driven by the economy's polluting activity. We provide a closed-form solution and show that the optimal path is characterized by a constant growth rate of consumption and the capital stock until a shock arrives, triggering a downward jump in both variables. Optimum mitigation policy consists of spending a constant fraction of output on emissions abatement. This fraction is an increasing function of the arrival rate, polluting intensity of output, and the damage intensity of emissions. A sharp response of the optimum growth rate and the abatement share to changes in the arrival rate and the damage intensity justifies more stringent climate policies as compared to the expectation-based scenario. We subsequently extend the baseline model by adding climate-induced fluctuations around the growth trend and stock-pollution effects, demonstrating robustness of our results. In a quantitative assessment of our model we show that the optimal abatement expenditure at the global level may represent 0.9% of output, which is equivalent to a tax of $71 per ton carbon. |
| Keywords: | Climate policy; uncertainty; natural disasters; endogenous growth. |
| JEL: | O10 Q52 Q54 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:14-202&r=env |
| By: | Asian Development Bank (ADB); (Southeast Asia Department, ADB); ; |
| Abstract: | This report was produced under the Technical Assistance Grant: Determining the Potential for Carbon Capture and Storage (CCS) in Southeast Asia (TA 7575-REG), and is focused on an assessment of the CCS potential in Thailand, Viet Nam, and specific regions of Indonesia (South Sumatra) and the Philippines (CALABARZON). It contains inventories of carbon dioxide emission sources, estimates of overall storage potential, likely source-sink match options for potential CCS projects, and an analysis of existing policy, legal, and regulatory frameworks with a view toward supporting future CCS operations. The report also presents a comparative financial analysis of candidate CCS projects, highlights possible incentive schemes for financing CCS, and provides an actionable road map for pilot, demonstration, and commercial CCS projects. |
| Keywords: | energy and environment, climate change mitigation, Southeast Asia, carbon market, greenhouse gases, GHG emission, carbon dioxide emission, carbon capture and storage, Clean Development Mechanism, fossil fuels, indonesia, philippines, thailand, vietnam |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:asd:wpaper:rpt135683-2&r=env |
| By: | Asian Development Bank (ADB); (Office of the General Counsel, ADB); ; |
| Abstract: | This publication documents the proceedings of the South Asia Conference on Environmental Justice, held last 24–25 March 2012 at Bhurban, Pakistan. The conference brought together chief justices, senior members of the judiciary, and other legal stakeholders in South Asia, to highlight environmental challenges in the subregion, and devise ways to strengthen the implementation of environmental justice and ensure compliance with environmental laws. The recommendations from the conference led to the adoption of a 14-point Bhurban Declaration establishing green benches across Pakistan and calling for subregional collaboration for educated judiciaries, specialized courts, and cooperation to achieve environmental justice. |
| Keywords: | environmental law, south asia, green justice, bangladesh, bhutan, india, nepal, pakistan, sri lanka, afghanistan, brazil, indonesia, jordan, environmental justice, green benches, environment conference, bhurban declaration |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:asd:wpaper:rpt135570&r=env |
| By: | Thomas Schinko; Judith Köberl; Franz Prettenthaler; Birgit Bednar-Friedl; Christoph Töglhofer; Georg Heinrich; Andreas Gobiet |
| Abstract: | Even if all greenhouse gas emissions stopped at once, temperatures are predicted to continue rising due to the inertia of the climate system. As skiing tourism in the Austrian Alps is highly climate sensitive, higher temperature and changed precipitation patterns require increased artificial snow making. However, spa and urban tourism rely less on climatic conditions and may benefit from a shift in demand. In this paper, we assess the different climate change impacts and adaptation options for the Austrian tourism sector up to 2050 by taking account of macroeconomic feedback effects. We find in each of the climate scenarios negative effects on demand in all tourism region types. For the summer season, the extent of potential climate change impacts are found to be smaller and the impact direction to be less clear. Due to macroeconomic feedback effects, also non-tourism sectors are affected, but while until 2020 negative spillover effects emerge due to reduced demand from tourism sectors, the effect becomes positive until 2040. Appropriate adaptation measures may counteract a substantial fraction of climate change impacts, but this increases production costs, especially for artificial snow making. In particular, adaptation leads to price increases in the “focus on winter tourism” region for all climatic scenarios in 2020. In contrast, adaptation in the other tourism region types may lead to price decreases due to higher cost savings from reduced heating and reduced relative prices from other inputs. See above See above |
| Keywords: | Autria, Energy and environmental policy, General equilibrium modeling |
| Date: | 2013–06–21 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:004912:5601&r=env |
| By: | Asian Development Bank (ADB); (South Asia Department, ADB); ; |
| Abstract: | The cities of South Asia are growing at an unprecedented rate, and there is potential to steer this development onto a sustainable and green path. Carbon financing serves as a valuable revenue source to help cities earn additional income to support low-carbon development. With the end of the first commitment period of the Kyoto Protocol on 31 December 2012, a fragmented international carbon market now exists with various approaches to reducing greenhouse gas emissions outside the national borders of Annex I (industrialized) countries. Considering the potential for low-carbon development in South Asia, there is a need to help countries understand and navigate this new international carbon market. This guidance note (i) provides an overview of the carbon financing market in the post-2012 context, (ii) guides readers on how to access carbon finance, and (iii) highlights good practices in low-carbon urban development. It is aimed at government officials and project developers throughout South Asia, and is structured in a question-and-answer format for quick and easy reference. |
| Keywords: | climate change, urban development, carbon finance, green cities, sustainability, solid waste management, economic development, environment, livable city, sustainable city, urbanization, sustainable development |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:asd:wpaper:rpt136012-2&r=env |
| By: | L. Lambertini; G. Pignataro; A. Tampieri |
| Abstract: | In this paper we analyse a setup where consumers are heterogeneous in the perception of environmental quality. The equilibrium is verified in a setting with horizontal and vertical (green) differentiation. Profits are increasing in the misperception of quality, while, the investment in green quality decreases the more the goods are substitutes. We further consider the introduction of either an emission tax or an environmental standard. The former rises the investment in environmental quality due to the higher cost of production, whereas in equilibrium quality always improves after the introduction of the latter. We show that an optimal environmental standard is an effective regulatory instrument against greenwashing and that the efficacy of the interventions is conditioned to the damage distribution and the aggregate level of emission. |
| JEL: | L13 L51 Q50 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:bol:bodewp:wp958&r=env |
| By: | Asian Development Bank (ADB); (Economics and Research Department, ADB); ; |
| Abstract: | The Pacific developing member countries of the Asian Development Bank are highly vulnerable to the predicted effects of climate change, including higher sea levels, intense storm surges and cyclones, erratic rainfall patterns, and major temperature fluctuations. This study identifies the effects and quantifies the costs of these adverse outcomes to the Pacific island economies, with details provided for selected key sectors including agriculture, fisheries, tourism, coral reefs, and human health. It then presents policy recommendations and action steps for the countries to minimize or mitigate these impacts, particularly by mainstreaming climate change in their development plans, adopting forward-looking and risk-based approaches to climate change, and climate-proofing both their programs and infrastructure so that poverty eradication and sustainable development efforts can continue regardless of the vagaries of climate. |
| Keywords: | fiji, papua new guinea, samoa, solomon islands, east timor, vanuatu, climate change, coral reefs, cyclone, economic impact, economics of climate change, el niño, emissions scenarios, extreme weather events, natural disasters, pacific region, rising sea-levels |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:asd:wpaper:rpt136119-2&r=env |
| By: | Davide Antonioli (University of Ferrara, Italy.); Simone Borghesi (University of Siena, Italy.); Alessio D'Amato (Università di Roma Tor Vergata, Italy.); Marianna Gilli (University of Ferrara, Italy.); Massimiliano Mazzanti (University of Ferrara, Italy.); Francesco Nicolli (CERIS-CNR Milano, Italy.) |
| Abstract: | The paper investigates the effectiveness and efficiency of energy-environmental policy interactions in Italy, adopting a broad optimality perspective that includes policy feasibility and dynamic efficiency. The analysis highlights that though some complementarity among different policies exists, climate policies have been often undermined by energy and renewables policy. Nevertheless, some complementarities between policy landscapes are found, as in the case of the Kyoto Fund (climate policy) and of the incentives and funding towards thermal energy, both acting as a complementary tool to cover non EU-ETS sectors. Overall, renewables oriented policies bring about efficacy but this often occurs at the expenses of their efficiency, thus generating a trade-off between these two components of optimality. Finally, incentives remuneration of renewables and also Energy efficiency investments give a mixed signal to improve innovation and to stimulate the green sector. In conclusion, notwithstanding efficacy is present in some case, cost effectiveness and efficiency are far from being optimal, and It would be better to provide a clear and durable price signal using carbon taxation tools. |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:2514&r=env |
| By: | Jing Wu; Zheng Wang; Qianting Zhu; Lijuan Wang; Yi Gong; Huaqun Li |
| Abstract: | Integrated assessment models(IAMs) are the primary methodology for climate change policy modeling, since it connect the economic activities with the natural system which is influenced by economic system. In this paper,we present a IAM model and develop policy assessment for mitigation strategies.The IAM model named MRICES in our paper is based on dynamic system mechanism. Many global emission reduction strategies have been proposed, but few have been assessed quantitively from the view of equality, efficiency and effectiveness. Integrated assessment models (IAM) is one of the effective ways to make climate policy modeling. So in this paper we developed the MRICES (Multi-regional integrated model of climate and economy with GDP spillovers) model, which is an IAM but extends to include GDP spillover mechanism, to make assessment on several strategies for global emissions reduction, including the egalitarianism strategy, the UNDP strategy and the Copenhagen Accord. Using 1990 as a baseline for historical emissions levels, the egalitarian strategy argues that developed nations should implement urgent emissions reductions, whereas developing nations are allowed relatively higher future emissions quotas. The UNDP strategy addresses the issue of substantial changes in global temperature but acknowledges that developing countries are not able to afford more costs for mitigation measures, which is inequitable from the perspective of a country’s right to develop. We also simulated the Copenhagen Accord to determine the consequences by the year 2100 if each country continues their current emissions mitigation actions, and results indicated that the increase in global temperature will be 2.8°C by 2100; consequently, much stronger emissions reduction efforts must be implemented after 2020. Based on analysis on mitigation strategies, it is recognized that the common but differentiated responsibility principle must be insisted when making global mitigation strategy. To comply with this principle, the emission reduction baseline of developed and developing countries should be discriminated, so 1990 and 2005 can be taken as the base year for developed and developing countries respectively. |
| Keywords: | Global, Impact and scenario analysis, Energy and environmental policy |
| Date: | 2014–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:006356:6567&r=env |
| By: | Isabel Teichmann |
| Abstract: | Biochar is a carbon-rich solid obtained from the heating of biomass in the (near) absence of oxygen in a process called pyrolysis. Its deployment in soils is increasingly discussed as a promising means to sequester carbon in soils and, thus, to help mitigate climate change. For a wide range of feedstocks and scenarios and against the baseline of conventional feedstock management, we calculate the technical greenhouse-gas mitigation potentials of slow-pyrolysis biochar in 2015, 2030 and 2050 when the biochar is incorporated into agricultural soils in Germany and when the by-products from biochar production - pyrolysis oils and gases - are used as renewable sources of energy. Covering the greenhouse gases carbon dioxide, methane and nitrous oxide, our analysis reveals that biochar allows for an annual technical greenhouse-gas mitigation potential in Germany in the range of 2.8-10.2 million tonnes of carbon-dioxide equivalents by 2030 and 2.9-10.6 million tonnes of carbon-dioxide equivalents by 2050. This corresponds to approximately 0.4-1.5% and 0.3-1.1% of the respective German greenhouse-gas reduction targets in 2030 and 2050. |
| Keywords: | Biochar, agriculture, Germany, climate change, soil carbon sequestration |
| JEL: | Q15 Q24 Q54 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1406&r=env |
| By: | Roula Inglesi-Lotz; Jessika Bohlmann |
| Abstract: | One of the most severe problems of the modern world is the climate change and its important negative consequences to the environment. Human activity, particularly the consumption of energy, has been considered being one of the main factors contributing to the changing of climate in the last decades (IPCC, 2007). To tackle the future changes of the environment, among other measures, a change in the current ways of generating energy is imperative. Traditional generation techniques such as coal-burning have detrimental effects to the environment and hence, internationally, countries have turned towards more environmentally-friendly generation techniques from renewable sources such as solar and wind that are also in synergy with many aspects of sustainable development (Stiglitz, 2002). Developed countries promote renewable energies (RE) with ultimate purpose to strengthen the energy security and control their greenhouse gas (GHG) emissions (Moselle, 2011); while the developing economies see solutions in the use of RE to the challenges of rural electrification and lack of access to electricity (Munasinghe 1990, Pereira et al. 2010). The Environmental Kuznets Curve (EKC) illustrates the hypothesis that a country is performing environmentally worse at the early stages of economic growth and development but subsequently, as the economic growth rises, the environmental quality improves. Although in theory, the hypothesis can be justified, the results of the empirical studies remain inconclusive. Possible reasons to explain this phenomenon can be: (a) the transition of the economies from clean agricultural economies, to high polluting secondary sector-based economies and finally to clean service-based economies and (b) at higher income levels, people do not worry about their surviving needs and tend to improve their preference for environmental quality. Examining the existence of EKC for the South African case and the rest of Africa will be particularly interesting and relevant for South Africa and other African economies that are already in a certain path of growth and development but in parallel they are also committed internationally to reduce emissions and promote clean and renewable energies. This paper will be able to answer the following research questions: • What has the recent international literature concluded on the EKC hypothesis? • Theoretically, where does the hypothesis stand on? • Does the choice of the indicator for environmental performance have an impact on the findings? • Which is the most appropriate methodology to be used in an empirical analysis of EKC for South Africa and the African countries? • Using this methodology, is the EKC hypothesis confirmed or rejected for South Africa? What are the reasons behind the findings? • Are there interventions that can promote a “tunnel-through” for South Africa? What can the country learn from international best practice? • What are the policy implications of the findings and how should the policy makers use them? References IPCC (2007). Fourth Assessment Report of the Intergovernmental Panel on Climate Change. Geneva, Switzerland Moselle, B. (2011). Why support renewables?. EPRG spring research seminar. University of Cambridge. UK. Munasinghe, M. (1990). Rural electrification in the Third World. Power Engineering journal: 189-202. Pereira, M.G.,Freitas, M.A.V. and Silva, N.F. (2010). Rural electrification and energy poverty: empirical evidences from Brazil. Renewable and Sustainable Energy Reviews: 14:1229-1240. Stiglitz, J. (2002). Globalization and its discontents. Penguin Books Ltd. London, UK. Numerous studies have estimated EKCs for certain air and water pollutants as well as other indicators proxying environmental performance. As noted Arrow et al. (1995) and Stern et al. (1996), these estimated regressions are reduced-form relationships which mean that they reflect correlation rather than a causal relationship. Nevertheless, these studies provide evidence that, for at least those pollutants involving local short-term health hazards, market and institutional mechanisms have eventually brought about a reduction in environmental damage during the course of economic growth (Cole et al. 1997). Cole et al (1997) extended past empirical studies by including more environmental indicators such as carbon dioxide, methane, and others. “The employment of a reasonably comprehensive data set permits the examination of a number of hypotheses relating to the association between economic growth and the environment. First, that pollutants with a local short-term impact (e.g., suspended particulate matter) will have estimated turning points at lower per capita income levels than those environmental indicators whose impact is more global in nature (e.g., carbon dioxide)” (Cole et al. 1997). In our analysis, we will follow Cole et al. (1997) with the idea of using different indicators for South Africa and compare the results. The basic model is: Et= f( Yt, Xt) where Et denotes the environmental indicator in per capita form in the country at year t, Yt denotes per capita income in the country at year t, and Xt represents exogenous factors, such as trade intensity and the level of technology in the country at year t. Two alternative functional forms are employed for estimating equation (1) from a cross-country/regional panel set: quadratic in levels and quadratic in logarithms. These are written as: Et= (α + μ F) + β Yt+ γ Yt2+ Xt +et (1) and ln Et= (λ +κ F) + η lnYt + θ(lnYt)2+Xt+ εt (2) A cubic function can also be considered, even though that Cole et al. (1997) pointed that the fact that every cubic relationship necessarily extends to plus or minus infinity was deemed to be unrealistic. An environmental quality path exists if there is a statistically significant relationship between an environmental indicator and income. A path displays a turning point if β> 0 and γ<0 in equation (1) and η>0 and θ<0 in equation (2). Income at the turning point, denoted by Y* is Y*=(-β/2γ) in equation (1) and Y*=exp(-η/2θ) in equation (2). A priori, the quadratic logs function would seem to provide a more realistic income–environmental quality path than the quadratic levels function because of the symmetrical nature of the latter. If, for example, pollution is considered, this symmetry implies, first, that pollution levels will fall at the same rate as they increased and, second, that these pollution levels will become negative, probably in a short space of time. This is in contrast to the quadratic logs function which falls away only gradually, once it passes the turning point, as the curve asymptotically approaches zero. I will critically evaluate various econometric methodologies that would seem appropriate to quantify the above discussed theoretical framework. Among them, we will consider cointegration techniques such as ones using time series data (cointegration as the ones proposed by Granger, Johannsen or the ARDL), Vector AutoRegression (VAR) and Vector Error Correction Models (VECM), or panel data techniques such as the Generalised Method of Moments (GMM) or Seemingly Unrelated regressions (SUR). References Arrow, K., B. Bolin, R. Costanza, P. Dasgupta, C. Folke, C.S. Holling, B.-O. Jansson, S. Levin, K.-G. Maler, C. Perrings and D. Pimentel (1995), ‘Economic growth, carrying capacity and the environment’, Ecological Economics 15(2): 91–95. Cole, M.A., Rayner, A.J. and Bates, J.M. (1997). The environmental Kuznets curve: and empirical analysis. Environment and Development Economics, 2: 401-406. Stern, D.I., M.S. Common and E.B. Barbier (1996), ‘Economic growth and environmental degradation: The environmental Kuznets curve and sustainable development’, World Development 24(7): 1151–1160. The results of this paper will confirm or not the EKC hypothesis and also, make some useful suggestions with regards to the proxies to be used in such papers in the future as well as the appropriate methodologies. |
| Keywords: | South Africa, Energy and environmental policy, Developing countries |
| Date: | 2014–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:006356:6378&r=env |
| By: | Yuri Yevdokimov |
| Abstract: | Climate change has become one of the most serious consequences of human activities. According to the IPCC Fourth assessment report, the emission of greenhouse gases (GHG) generated by human activities is the primary cause of the climate change and especially global warming. In general, transportation is one of the areas where climate change problem is the most severe. On the one hand, with passage of time vehicle usage will result in more greenhouse gases, which would contribute to further climate change; on the other hand, climate change itself makes transportation infrastructure, vehicles and operations vulnerable to various impacts. Unfortunately, very little has been done in order to estimate economic losses due to climate change impacts on transportation. THis study tries to capture this gap.In this study, climate change impacts and their economic consequences for Atlantic Canada ground transportation network are analyzed. First, major climate change impacts in the area are identified. Second, the best economic model to evaluate consequences of the climate change impacts is chosen. Third, using the existing literature and studies that describe future climate changes in the region, various scenarios of future challenges for the regional ground transportation network are specified. Finally, economic consequences of the regional climate change impacts on the ground transportation network are evaluated. The above specified consequences are imposed on a dynamic general equilibrium model and their cumulative impacts are traced over time.Climate change impacts could reduce the volume of transpiration associated with analyzed regional network by 0.07 to 0.14 million vehicles per year compared to the current volume of 4.89 million. It could lead to the loss in value added by 11.136 million per year. |
| Keywords: | Atlantic Canada, General equilibrium modeling, Impact and scenario analysis |
| Date: | 2014–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:006356:6465&r=env |
| By: | World Bank |
| Keywords: | Environment - Climate Change Mitigation and Green House Gases Macroeconomics and Economic Growth - Climate Change Economics Energy - Energy Production and Transportation Environment - Environment and Energy Efficiency Energy - Energy and Environment |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:19319&r=env |
| By: | Gareth Green; Timothy J. Richards |
| Abstract: | Environmental policy decisions are dynamic in nature. Assumptions on the functional structure and rate of discounting have significant impacts on policy decisions regarding when to act and how much to invest. Environmental benefit-cost analysis historically has employed exponential discounting structure and market discount rates for evaluating environmental policy. Though here has been significant research in the lab indicating that discount functions may be hyperbolic, the research has focused primarily on monetary rewards (Lowenstein and Prelec 2002; Benhabib, Bisin and Schotter 2010). However, there has only been limited research indicating that environmental goods may also be discounted in a hyperbolic manner (Viscusi and Huber 2008; Karp 2007). We examine the structure and rate of discount functions for a variety of environmental goods to determine if people discount different environmental goods differently. We estimate a flexible discount function (Prelec) that allows us to determine the structure and rate of discounting for different types of public goods. We employ a front-end delay in the reward, similar to Anderson et al, to insure that any evidence of hyperbolic discounting is not due to having an immediate payoff. Though there have been several studies that have looked at discounting of public goods (Viscusi, Huber and Bell) and public bads (Svenson and Karlson 1989; Nikolaij and Hendrickx 2003; Hendrickx and Nicoloaij 2004; and Bohm and Pfister 2005), we examine discounting behavior for different types of public goods within the same sample. We select the public goods such that benefits differ in their level of use value and time frame of occurrence. We use three different types of public goods: improvements in public parks, improvements in water quality for aquatic life, and reductions in carbon emissions. Improvements in parks and water quality are similar in time frame, but differ in use value. Improvements in water quality and reductions in carbon emissions are similar in use value, but differ in time frame. Examining these three different public goods with slightly different characteristics will allow us to determine how people discount different types of public goods, which critical to understanding public policy choices toward environmental goods. Preliminary results indicate that people discount different types of goods differently. Mainly that people place a higher discount rate on environmental goods with use value and a lower discount rate on environmental goods with non-use value. We also find that environmental discount rates are quasi-hyperbolic in structure. |
| Keywords: | United States, Energy and environmental policy, Agent-based modeling |
| Date: | 2013–06–21 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:004912:5345&r=env |
| By: | World Bank Group |
| Keywords: | Environment - Climate Change Mitigation and Green House Gases Macroeconomics and Economic Growth - Climate Change Economics Transport Economics Policy and Planning Energy - Energy Production and Transportation Energy - Energy and Environment Transport |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:19308&r=env |
| By: | Massimiliano Mazzanti (Dept. of Economics and Management. University of Ferrara, Italy. CERIS CNR Milan. SEEDS – Sustainability Environmental Economics Dynamics Studies.); Antonio Musolesi (INRA, UMR; Université de Grenoble Alpes, France.) |
| Abstract: | We study long run carbon dioxide emissions-economic development relationships for advanced countries grouped in policy relevant groups: North America and Oceania, South Europe, North Europe. By relying on recent advances on Generalized Additive Mixed Models (GAMMs) and adopting interaction models, we handle simultaneously three main econometric issues, named here as functional form bias, heterogeneity bias and omitted time related factors bias, which have been proved to be relevant but have been addressed separately in previous papers. The model incorporates nonlinear effects, eventually heterogeneous across countries, for both income and time. We also handle serial correlation by using autoregressive moving average (ARMA) processes. We find that country-specific time related factors weight more than income in driving the northern EU Environmental Kuznets. Overall, the countries differ more on their carbon-time relation than on the carbon-income relation which is in almost all cases monotonic positive. Once serial correlation and (heterogeneous) time effects have been accounted for, only three Scandinavian countries — Denmark, Finland and Sweden — present some threshold effect on the CO2-development relation. |
| Keywords: | Environmental Kuznets curve, semiparametric models, generalized additive mixed models, interaction models. |
| JEL: | C14 C23 Q53 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:2214&r=env |
| By: | Djoni Hartono; Nurkholis; Aldi Hutagalung |
| Abstract: | To be completed To be completed To be completed |
| Keywords: | Indonesia, Energy and environmental policy, Energy and environmental policy |
| Date: | 2014–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:006356:7346&r=env |
| By: | HARUO IMAI; Jiro Akita; Hidenori NIizawa |
| Abstract: | After five years of Kyoto Protocol, now it is the time to review its impact and possible improvement, although KP itself in a sense suffers from a decline in the number of countries accepting emission quota. One notable feature of KP was the introduction of baseline-credit mechanism called the Clean Development Mechanism (CDM) to assist nations to reduce emissions within the assigned amount. There was several mistakes pointed out in the design of this mechanism, and among them is the dominance of non-energy related projects in the supply of the credits. Now, the reform of CDM is proposed by the CDM-EB (executive board) and still the scheme developed by the UN for CDM is considered a valuable infrastructure which can be shared by many alternative mechanisms as well as regional agreement which make use of offset schemes. However, among the proposed reform is the standardization of baselines which seems to contain several potential problems. In this paper, we shall examine several problems in this proposal taking the instances of projects which improves the emissions from a coal-fired power plant as discussed in Hayashi and Michelowa (2012). Among others, the proposal attempt to bind together several project options from energy efficiency project like the use of supercritical technology, to fuel switch project like a switch to LNG, and ultimately to the renewable energy. Mixing these together, the proposal sets the baseline and additionality criterion at a certain percentage point of the cumulative distribution. We shall point our several issues spotted in this proposal and try to fine a better option. Based on these observations, we examine the method to strike a balance between transaction costs and environmental integrity. See above See above |
| Keywords: | NA, Energy and environmental policy, Energy and environmental policy |
| Date: | 2013–09–05 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:005741:5999&r=env |
| By: | Reyno Seymore; R. Inglesi-Lotz1; J. Blignaut1 |
| Abstract: | A comparative analysis among the various greenhouse gas (GHG) emission inventories of South Africa is conducted, and in the process new inventories for 2007 and 2008 are constructed. The need for such a comparative analysis exists due to the number of inventories that have been published by, among others, the South African Department of Energy (DoE), the South African Department of Environmental Affairs and Tourism (DEAT), the International Energy Agency (IEA), Scholes and van der Merwe (1996), Howells and Solomon (2000), and Blignaut et al. (2005). Not only are these emission inventories relatively dated and requiring an update, but they also make use of different methodologies and report on the emissions using different industrial classifications. This paper proposes a consistent and theoretical rigorous approach to construct a reliable and timeous GHG emissions inventory. To accomplish this task, this paper develops GHG emissions databases for 2007 and 2008 in terms of industrial sectors, using the energy balances of South Africa. The South African Department of Energy (DoE), the South African Department of Environmental Affairs and Tourism (DEAT), as well as the International Energy Agency (IEA) published emissions data for South Africa. However, there seems to be inconsistencies between the different emission datasets. • The IEA database, while providing useful information for the comparison analysis with other countries, neither provides disaggregated emissions per sector nor includes other (non-CO2) greenhouse gas emissions. • The DoE has recent data and on a desired level of disaggregation; however, due to data gaps it probably underestimates emissions. • The DEAT inventory, while it includes a high level of disaggregation with an all-inclusive approach, is relatively dated providing an inventory only until 2000. Based on the consistent similarity between the Blignaut et al. (2005) and the 2006 IPCC Emissions Guidelines inventories, as well as the methodological rigor of both approaches, compared to the ambiguous treatment of several sectors in the DoE inventory, the suggested inventory to use is either the inventory constructed using the same emission factors as Blignaut et al. (2005) or the one using the 2006 IPCC Emissions Guidelines. |
| Keywords: | South Africa, Energy and environmental policy, Developing countries |
| Date: | 2013–06–21 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:004912:5071&r=env |
| By: | Ulrike Lehr; Anke Moennig |
| Abstract: | Degradation of the environment, including the pollution of water, soil and air, the irreversible loss of biodiversity, and depletion of natural resources are global threats to sustainable development. The threats are enhanced by the impact of climate change already being felt in many developing countries. These challenges have led to the postulate of making the way we produce, work and travel more compatible with the ecological limits and boundaries of our planet. On the social level, the challenges of large unemployment especially among young people, the questions of inclusion and participation of the population in a better, healthier and safer life seem equally unresolved in large parts of the world. Under the headline of Green Economy suggestions have been made in the course of the RIO+20 conference on the question how these challenges can be addressed by a harmonized approach. Currently, this is being translated into practice . To develop the respective policies, legislation and support mechanisms, a rigorous framework of evaluation has to be established. The analysis of the status of green and decent employment and of the potential for the creation of green and decent jobs in the future is a necessary first on the pathway to a green economy. The International Labor Organization (ILO) supports a series of studies in an attempt to develop a method for the measurement of green and decent employment. This paper deals with a study of this series which evaluates green employment in Tunisia. For Tunisia after the Revolution of 14 January 2011 the targets of a transition to a green economy overlap with some of the most pressing needs and challenges the country is facing with respect to economic, environmental and social changes. The approach consists of two parts: firstly, we construct an Input Output table where we can identify green sectors or shares of sectors which can be labeled “green”. A consistent method has been developed to construct such a matrix. From an original (N x N)- IO matrix, the result then is a (2N x 2N) matrix. The construction involves the definition of sectors which are totally green, of sectors which cannot be green and of sectors which have green and non-green parts. The overarching definitions are taken from the joint definitions of UNEP and ILO for green economic activities. Additionally, consistency between the original values of the IO table and the new sums of rows and columns has to be assured by a set of rules, which are defined in detail in the paper. In a next step, the cost structures for the green and the non-green parts are analyzed. For most sectors, the cost structure of the green part and the non-green part is the same. One notable exception is organic farming which, in comparison to conventional farming, exhibits shifts in the input structure from fertilizers (chemical industry) to machinery and labor. The latter shift can be read as a shift in value added shares, too. Secondly, we build a macro driven small IO model (cf. also Lehr et al. 2013, Renewable energy and energy efficiency in Tunisia – employment, qualification and economic effects) for Tunisia to forecast green employment development at the mid-term time horizon. Different scenarios then are defined together with stakeholders and fed into the model. The comparison of simulation runs allows for estimates of green employment under the different scenarios and employment differences under different strategies. Green jobs are currently found in Tunisia predominantly in the waste and water sector. In other sectors, the shares of green employment today are still rather low, with a larger share in services and administration than in the productive sector. This structure is typical for a developing country of Tunisia’s size and endowment. For future prospects, the opportunities lie in the production of consumption goods, i.e. also changing peoples’ preferences towards the environment, in improvements in the waste treatment and in a better integration of overall industrial production so that indirect employment effects can grow. The results compare well with other works by the ILO and UNEP on green employment in developing countries. The paper will give quantitative scenarios, results and policy recommendations. |
| Keywords: | Tunisia, Macroeconometric modeling, Energy and environmental policy |
| Date: | 2014–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:006356:6664&r=env |
| By: | Yingying Lu; David Stern |
| Abstract: | The degree of substitutability assumed between inputs in production and commodities in consumption is one of the key factors that might affect the range of predicted climate mitigation costs. We explore how and by how much assumptions about elasticities of substitution affect estimates of the cost of emissions reduction policies in computable general equilibrium (CGE) models.We use G-Cubed, an intertemporal CGE model, to carry out a sensitivity analysis and apply factor decomposition analysis to the outcomes from the model.The results suggest that the average abatement cost rises non-linearly as elasticities are reduced. Substitution elasticities between capital, labor, energy, and materials in production have a larger impact on mitigation costs than inter-fuel substitution does. There are notable differences in the effect of the elasticities on costs at the regional level due to interactions in international trade and capital flows in such a global model. As elasticities are reduced, growth in GDP and emissions also decrease under the business as usual scenario and so the emissions that must be cut to reach a given absolute mitigation target are also reduced. Therefore, there is not much variation in the total costs of reaching a given target across the parameter space. |
| Keywords: | Global, General equilibrium modeling, Energy and environmental policy |
| Date: | 2014–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:006356:6692&r=env |
| By: | Michael Hübler; Sebastian Voigt; Andreas Löschel |
| Abstract: | We assess recent Chinese climate policy proposals in a multi-region, multi-sector computable general equilibrium model with a Chinese carbon emissions trading scheme (ETS). We conduct a quantitative assessment of the Chinese emissions trading scheme (ETS) with the help of PACE (Policy Analysis based on Computable Equilibrium). PACE is a multi-sector, multi-region computable general equilibrium (CGE) model of global production, consumption, trade and energy use which is calibrated for the year 2005 proceeding in five-year time steps until the year 2030. The model is recursive dynamic, this means, it is solved for a sequence of global market equilibria. The equilibria are connected via investments and other exogenous drivers of economic growth. The benchmark data for the year 2004/2005 are taken from the GTAP 7 data base (Global Trade Analysis Project; Badri and Walmsley, 2008). Data for the dynamic business-as-usual (BAU) calibration until 2030 are taken from IEO (2008/2010). IEO (2008/2010) provides detailed regional data on fuel-specific primary energy consumption and carbon emissions. Pricing of carbon emissions with the help of an ETS results in macroeconomic effects (welfare, GDP, net exports etc.) and sectoral effects (output reductions). When the emissions intensity per GDP in 2020 is required to be 45% lower than in 2005, the model simulations indicate that the climate policy- induced welfare loss in 2020, measured as the level of GDP and welfare in 2020 under climate policy relative to their level under business-as-usual (BAU) in the same year, is about 1%. The Chinese welfare loss in 2020 slightly increases in the Chinese rate of economic growth in 2020. When keeping the emissions target fixed at the 2020 level after 2020 in absolute terms, the welfare loss will reach about 2% in 2030. If China’s annual economic growth rate is 0.5 percentage points higher (lower), the climate policy-induced welfare loss in 2030 will rise (decline) by about 0.5 percentage points. When imposing a laxer 40% intensity target, the losses will decline to 1.7% in 2030. Full auctioning of carbon allowances results in very similar macroeconomic effects as free allocation, but the results differ significantly at the sector level. Linking the Chinese to the European ETS and restricting the transfer volume to one third of the EU’s reduction effort creates at best a small benefit for China, yet with smaller sectoral output reductions than auctioning. These results highlight the importance of designing the Chinese ETS wisely. |
| Keywords: | People's Republic of China, General equilibrium modeling, Impact and scenario analysis |
| Date: | 2014–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:006356:6775&r=env |
| By: | Virginie Doumax-Tagliavini; Cristina Sarasa, University of Zaragoza |
| Abstract: | In September 2013, the EU Parliament has called for a 6% limitation of crop-based biofuels (instead of 10% initially) and proposed a 2.5% binding incorporation target for cellulosic biofuels by 2020. In spite of this stated objective, the horizon of a large-scale adoption for advanced biofuels remains largely uncertain. Indeed, biofuels competitiveness is tightly linked to crude oil prices that also follow an uncertain evolution. In this context, including both uncertainties into the same analysis framework could be challenging. Focusing on France, this work proposes to address this issue. The main objective is to assess the economic and environmental impacts of first and second-generation biofuels. We also determine the conditions under which advanced biofuels could become available earlier regarding to the evolution of oil prices and public subsidies. We develop an original approach to incorporate uncertainty within a dynamic computable general equilibrium (CGE) model calibrated on 2009 French data. In line with the existing literature, cellulosic biofuels are modeled as latent technology (Reilly and Paltsev, 2007; Melillo et al., 2009) and biofuels by-products are included into the analysis (Taheripour et al., 2010). Using stochastic programming, we consider different scenarios depending on the oil price volatility and the changes in the fiscal incentives. This methodology allows us to compare the effects of first and second-generation biofuels as regards mainly agricultural land, food production and greenhouse gas (GHG) emissions. Results confirm the larger performance of advanced biofuels in terms of GHG emissions. They also show in which measure the technology improvement may reduce the pressure on food and land resources. Therefore, simulations provide guidelines for public deciders to design alternative fiscal policies to support advanced biofuels hand in hand with economic, social and environmental impacts. |
| Keywords: | France, General equilibrium modeling, Energy and environmental policy |
| Date: | 2014–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:006356:6941&r=env |
| By: | Marie-Eve Yergeau; Dorothée Boccanfuso; Jonathan Goyette |
| Abstract: | Reducing extreme poverty and protecting the environment are two of the eight Millennium Development Goals (UN, 2012). Approximately 60% of the ecosystems currently used to produce goods and services are being exploited in an unsustainable manner. The establishment of protected areas is a widespread practice designed to curb environmental degradation. Between 1990 and 2011, the number of protected areas increased of 155% (WDPA, 2012). However, it is often criticized as limiting the expansion of agriculture and natural resource extraction, especially in poor regions (Ferraro et al., 2011). Others maintain that protected areas can increase welfare if the opportunity cost of conservation is less than the benefit generated by alternative uses of the land, such as ecotourism (e.g. Sims, 2010). The World Tourism Organization emphasizes that ecotourism development must, specifically, create income opportunities for local communities, while minimizing negative impacts on the natural environment (WTO, 2012). Ecotourism in protected zones thus appears to be this alternative use of the land, concurrently contributing to the goals of reducing poverty and protecting ecosystems (Andam et al., 2010; Sims, 2010). In the litterature, theoretical and empirical results on the relation between protected areas and welfare diverge. The few theoretical models developed so far generally assume that before being protected, land is used optimally. The establishment of a protected area thus constitute a constraint to this optimal use. Assuming as well that land protection does not generate other benefits at the local level, the main intuition emerging from these models is that protected areas will reduce economic wellbeing (Robalino, 2007; Robinson, Albers and Williams, 2008; Robinsin and Lokina, 2011). However, other authors have empirically tested the relation betweeen protected areas and welfare. For instance, four recent studies have been conducted in Costa Rica, Thailand and Bolivia (Andam et al., 2010; Sims, 2010; Ferraro and Hanauer, 2011; Canavire-Bacarreza and Hanauer, 2013). The authors all found that the establisment of protected areas contributed to economic development and poverty alleviation. They suggested that ecotourism development in the protected areas generated an income that was sufficient to compensate the loss caused by conservation. Moreover, Ferraro and Hanauer (2011) found an evidence that ecotourism contributes to poverty reduction in protected areas. The main objective of this paper is to increase the understanding of the link between conservation and poverty alleviation in order to contribute to the achievement of the Millenium Development Goals. To do so, we develop and test a theory explaining the relation between protected areas, ecotourism and wellbeing. We aim at reconciling the theoretical and empirical results found in the literature. We develop a static theoretical model consisting of one local agent and two sectors : extractive and ecotouristic. The model distinguishes itself because land protection allows to develop an alternative sector which generates a source of income at the local level. On the one hand, production in the extractive sector causes natural resources degradation. On the other hand, the ecotouristic sector produces from environmental quality. Therefore, the extractive sector causes a negative externality on the ecotouristic sector. At the same time, a planner imposes an environmental constraint that restrains the production in the extractive sector, which allows the ecotouristic sector to develop. This way, we relax the assumption generally made that land protection does not generate local benefit. The theoretical results are then tested on Nepalese data. We expect our theoretical model to reconcile the theoretical and the empirical results. The main expected result is that the alternative sector developed from land protection will affect the local welfare. The negative externality caused by the extractive sector, combined with the environmental constraint imposed by the planner, should generate a transfer of the production from the extractive towards the ecotouristic sector provided that the latter becomes more profitable. This way, land protection will be likely to generate an increase in the local welfare, as it is found in the empirical literature. The model will also allow to verify the natural resource extraction rate according to the environmental constraint severity. This result will be relevant for the purpose of environmental policies. |
| Keywords: | Nepal, Developing countries, Energy and environmental policy |
| Date: | 2014–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:006356:6716&r=env |
| By: | Mireille Bossy; Nadia Maizi; Odile Pourtallier |
| Abstract: | In this paper, we analyze Nash equilibria between electricity producers selling their production on an electricity market and buying CO2 emission allowances on an auction carbon market. The producers' strategies integrate the coupling of the two markets via the cost functions of the electricity production. We set out a clear Nash equilibrium on the power market that can be used to compute equilibrium prices on both markets as well as the related electricity produced and CO2 emissions released. |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1408.6122&r=env |
| By: | Djoni Hartono; Tony Irawan; Ahmad Komarulzaman |
| Abstract: | To be completed To be completed To be completed |
| Keywords: | Indonesia, Energy and environmental policy, General equilibrium modeling |
| Date: | 2014–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:006356:7344&r=env |
| By: | Asian Development Bank (ADB); (Central and West Asia Department, ADB); ; |
| Abstract: | More than 138 million people in the Indus River Basin in Pakistan depend on irrigated agriculture. But rising population pressures, climate change, and the continuous degradation of ecosystem services have resulted in increased flood risks, worsened by inadequate flood planning and management. The devastating 2010 flood alone caused damage of about $10 billion. This report proposes a contemporary holistic approach, applying scientific assessments that take people, land, and water into account. It also includes planning and implementation realized through appropriate policies, enforceable laws, and effective institutions. |
| Keywords: | pakistan floods, flood risk, indus basin, integrated water resources management, iwrm, basin water, flood management, flood control, floodplain, flood damage, Indus, Indus river, monsoons, Pakistan |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:asd:wpaper:rpt125133-3&r=env |
| By: | Elena Stolyarova |
| Abstract: | This paper provides an empirical analysis of CO2 emissions and economic growth, based on a panel dataset covering 93 countries over the period 1960-2008, and examines the challenge of country selection for homogeneous and appropriates groups. We have proposed a no parametric hierarchic clustering approach, based on 17 categorical variables, used the Multiple Correspondence Analysis (MCA) and the Hierarchical Clustering on Principal Components (HCPC). We have began ecnometric modeling by some model specification tests: parameters’ homogeneity, the unit root (IPS procedure) and Pedroni's cointegration tests. Finally Dynamic Panel Data and WITHIN models were estimated to explain the growth rate of per capita CO2 emissions. The results of the clustering indicate the optimal partition of 93 countries into 7 groups, each with its own characteristics. The unit root and cointegration tests show that the long-run relationship does not exist for any clusters and the nature of stationary is different between and into the groups. It’s found that the growth rate of per capita CO2 emissions depends positively on the growth rate of per capita GDP (short-run elasticity is between 0.3 and 0.79) and negatively on the growth rate of energy mix (between -0.025 and -0.13). |
| Keywords: | 93 countries (largest CO2 emitters), Energy and environmental policy, Macroeconometric modeling |
| Date: | 2013–06–21 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:004912:5433&r=env |
| By: | William A. Pizer; Andrew J. Yates |
| Abstract: | Compliance links between CO2 emission trading programs--where firms regulated under one region's tradable permit program can comply using permits from another region, and vice-versa--are beginning to arise as a vehicle to lower costs, increase liquidity, and strengthen institutions while achieving the same environmental outcome. These links are not immutable, however, as highlighted by New Jersey's decision to exit the multi-state Regional Greenhouse Gas Initiative at the end of 2011. This raises the question of how to manage a delink and, in particular, what to do with existing permits that are banked for future use--choices that can have important consequences for market behavior in advance of, or upon speculation about, a delinking event. To examine this question, we consider two delinking policies. One differentiates banked permits by origin, where banked permits originating in one region are only valid for compliance in that region after the delink occurs. The other treats all banked permits the same, with each banked permit being similarly split into two pieces, with one piece valid in one region and the other piece valid in the other region. Using a two-region, two-period model, we describe the price behavior and relative cost-effectiveness of each policy. Treating permits differently generally leads to higher costs, and may lead regional prices to diverge, even when there is only speculation about delinking. We illustrate these results with a numerical example of the EU-Australian link contemplated in 2013. |
| JEL: | Q54 Q58 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20393&r=env |
| By: | Luc Savard; Dorothee Boccanfuso; Jonathan Goyette; Véronique Gosselin; Clovis Tanekou Mangoua |
| 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 contribute to the economy of this Canadian province. Climate change will have an impact of the forest through increased droughts, warmer summers and winters or infestations such as the pine beetle (British Columbia and New Jersey). Two adaptation policies are simulated to be implemented to help the sector cope with CC direct and indirect effects. In our study we analyze the impact of CC on the forest industry in Quebec and on its economy. We also simulate two adaptation programs jointly with impact of CC of forestry. Our analysis is performed over a 40 year time span with a recursive dynamic CGE-micro-simulation framework allowing for distributional impact analysis. The impact of CC on the forestry sector are relatively small the secondary transformation industries support only a portion of the cost. Adaptation policies are efficient in reducing the negative economic and distributioinal impact. |
| Keywords: | Quebec/Canada, General equilibrium modeling, Microsimulation models |
| Date: | 2014–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:006356:6787&r=env |
| By: | Virginie Doumax-Tagliavini; Jean-Marc Philip; Cristina Sarasa |
| Abstract: | The 2009 Renewable Energies Directive (RED) has set up ambitious targets concerning biofuel consumption in the European Union by 2020. Nevertheless, budgetary constraints and growing concerns about the environmental integrity of first-generation biofuels have imposed a phasing out of the fiscal instruments to promote them. Focusing on France, this paper combines an exogenous increase in oil prices and tax policies on fossil fuels. The objective is to determine the efficiency of an alternative incentive scheme for biodiesel consumption based on a higher price of the fossil fuel substitute. Policy simulations are implemented through a dynamic computable general equilibrium (CGE) model calibrated on 2009 French data. The results show that the 10% biodiesel mandate set by the RED would not be achieved even if the fixed taxes on diesel reach the same level as those on gasoline. Although integrating the rise in oil prices into the fiscal framework improves the biodiesel penetration rate, it remains slightly below the target. Moreover, we find that the effects of biofuel consumption are limited to the biofuel chain sectors. In other agricutural sectors, the substitution effect of biodiesel with diesel is partially offset by the pricing effect induced by higher energy production costs. see above See above |
| Keywords: | France, Energy and environmental policy, Energy and environmental policy |
| Date: | 2013–06–21 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:004912:6245&r=env |
| By: | Dirk Willenbockel; Abeer Elshennawy; Sherman Robinson |
| Abstract: | Due to the high concentration of economic activity along the low-lying coastal zone of the Nile delta and its dependence on Nile river streamflow, Egypt's economy is highly exposed to adverse climate change. Adaptation planning requires a forward-lookingn assessment of climate change impacts on economic performance at economy-wide and sectoral level and a cost-benefit assessment of conceivable adaptation investment. The study aims to demonstrate the usefulness of an intertemporal computable general equilibrium modelling approach for such an assessment. This study develops a multisectoral intertemporal general equilibrium model with forward-looking agents, population growth and technical progress to analyse the long-run growth prospects of Egypt in a changing climate. Based on a review of existing estimates of climate change impacts on agricultural productivity, labor productivity and the potential losses due to sea-level rise for the country, the model is used to simulate the effects of climate change on aggregate consumption, investment and welfare up to 2050. Available cost estimates for adaptation investments are employed to explore adaptation strategies. On the methodological side, the present study overcomes the limitations of existing recursive-dynamic computable general models for climate change impact analysis by incorporating forward-looking expectations. Moreover, it extends the existing family of discrete-time intertemporal computable general equilibrium models to which our model belongs by incorporating population growth and technical progress. On the empirical side, the model is calibrated to a social accounting matrix that reflects the observed current structure of the Egyptian economy, and the climate change impact and adaptation scenarios are informed by a close review existing quantitative estimates for the size order of impacts and the costs of adaptation measures. The simulation analysis suggests that in the absence of policy-led adaptation investments, real GDP towards the middle of the century will be nearly 10 percent lower than in a hypothetical baseline without climate change. A combination of adaptation measures, that include coastal protection investments for vulnerable sections along the low-lying Nile delta, support for changes in crop management practices and investments to raise irrigation efficiency, could reduce the GDP loss in 2050 to around 4 percent. |
| Keywords: | Egypt, Impact and scenario analysis, General equilibrium modeling |
| Date: | 2013–06–21 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:004912:5325&r=env |
| By: | Cristina Sarasa; Jean-Marc Philip; Julio Sánchez-Chóliz |
| Abstract: | In last years, policy demand for information about the economic consequences of water management has increased significantly. It is due to the interaction between the hydrological and economic realm works both ways: water is transformed for economic use and the impact of economic use on water availability and quality consequently has implications in both the short and long term for the transformation process to modify water for economic use (Brower and Hofkes, 2008). From literature, it is demanded additional analysis on policy interventions that could provide an incentive for adaptation responses to climate change (Dinar, 2012). Policy strategies could mitigate the longer-term economic effects of environmental change. In this line, the main purpose of this work is to find a tax policy strategy to apply to water management that lets mitigate the economic-wide impacts of water constraints, specifically in drought years, through an improvement in water efficiency in the long term. To do it, we use the methodological approach of a dynamic computable general equilibrium model (CGE). These models take into account the various inter-linkages between economic sectors and are particularly useful for the evaluation of water pricing policies (Brower and Hofkes, 2008). Therefore, an additional objective of this paper is to contribute to a growing literature that uses CGE models as a tool for the analysis of water management due to the majority of the studies are usually focused on energy and climate change. Since the challenge of water is a long-term matter, dynamic CGE models can help us to analyze water management with a view of the future economic impacts. These models present a wide range of possibilities that lead us to compare the economic impacts between a standard neoclassical CGE model with the ones of a model following a structuralist approach (Taylor, 1990). On the other hand, specific water basin models can help to evaluate and predict the impact of policy interventions on both economic and water systems (Brower et al., 2008). With these questions in mind, we examine the economic impacts from different alternative policies in a Spanish region which is dominated by a relevant irrigation scheme. The Ebro River Basin is the Spain´s largest river basin, occupying 17 per cent of its territory. Within the Ebro River basin, the irrigation of the province of Huesca has over 200,000 hectares, representing almost 40% of the utilised agricultural area (UAA) of Huesca and the 6% of the agricultural irrigated farmland in Spain (MARM, 2010). The output generated by the irrigation of Huesca reaches over 80% of total agricultural production in the province (DGA, 2009). The rationale for choosing the province of Huesca in Spain is based on various aspects. First, the major irrigation scheme of Spain is located in this area, which covers over 127,000 hectares, in particular, the Upper Aragon Irrigation System (CGRAA in Spanish acronyms) which includes 58 irrigation communities. This irrigation scheme also supplies water to several towns and cities, as well as ten industrial estates, and it is highly representative of irrigation in the Ebro valley. Second, the ready availability of data and collaboration in previous studies with this scheme has provide relevant information on water uses, levels of efficiency, cropping patterns and crop yields from 2001 to 2010, that mean that the CGRAA is ideally suited for the purposes of this study. In recent years, this irrigation scheme faces with a downward trend of water supply and some restrictions in water resource availability due to among other reasons the revegetation of headwaters, see Bielsa et al. (2011), the effects of climate change and the lack of regulation in this irrigation scheme. The current levels of water use efficiency in this irrigation scheme are very significant and suppose an efficient use, although it could be improved. They represent a great leap if we compare with the situation three or four decades ago. However, the volume of water supply in some years is insufficient for crops such as corn, rice, alfalfa or fruits, which are the most profitable and with high interest for agri-food industry, livestock and imports. These water constraints are provoking shocking changes in the cropping pattern removing towards less water demanding crops and with lower profitability, instead of the expected evolution (more weight of fruits, vegetables, corn,...). Finally, the water situation in this irrigation scheme could be a reflection on the situation in other arid areas with water constraints or with a downward trend in the volume of water available in the last years. In these areas the introduction of the most profitable and demanding crops could be really limited by the lack and insecurity of water supply. This water situation is represented into a recursive dynamic computable general equilibrium model that is developed with different structures and used for policy simulations. It is a multi-sector model in which water is also considered as a production factor. In this paper, we evaluate the economic impacts of alternative assumptions applied to different tax policies that combine both exogenous and endogenous technological change. First, the results are presented with a standard CGE model in a steady state reference scenario with a 2030 time horizon. A second scenario takes into account the real evolution of water supply in the last years in this area. This forecast is based on a downward trend of water supply and water constraints that lead to water productivity losses in drought years. Keeping the use of a standard walrasian CGE model, this scenario shows that future droughts will drastically influence on the prices of water. In a third scenario, we include in the model a structuralist approach in which water prices are under control to assess the economic impacts of tax policies designed to stabilize the price of water and as a consequence, to smooth the economic-wide impacts in drought years. In a fourth scenario under a standard walrasian approach again, we simulate a tax policy designed to increase water efficiency through endogenous technological change. The level of water efficiency follows a Gompertz function that starts from the real initial value, increases gradually and finally is stabilized with time. In addition, we wonder what could be the level and type of taxes that is needed to increase water efficiency. We focus our analyze on the substitution in production and consumption at the sectoral level to observe the effects of the reallocation of water. Our results show that letting only market laws functioning without a strong policy strategy would be not enough for goods such as water, especially in the long run. |
| Keywords: | Spain, General equilibrium modeling, Energy and environmental policy |
| Date: | 2013–06–21 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:004912:5349&r=env |
| By: | Zhou, Jane |
| Abstract: | To ensure the availability of cleanup funds, federal regulators often require ex ante proof of ability-to-pay for future environmental liabilities. These regulations currently apply to hazardous waste managers under the Resource Conservation and Recovery Act, and are being considered for expanded applicability to other industries. Regulators have long expressed concern regarding the reliability of self-insurance. Little economic work, however, has studied the differing incentive effects of different financial assurance mechanisms, such as self-insurance, insurance, or trust funds. Using a novel facility-level panel dataset, I test this hypothesis using data on firm financial assurance and chemical spills. I find that self-insurance mechanisms are strongly associated with increased spill rates. This paper shows that with noncompetitive insurance markets, third-party financial instruments may act as “private regulators" and incentivize facilities to exercise increased care against environmental damage. This association may also result from high-risk firms' selection into self-insurance. |
| Keywords: | Hazardous waste, Liability, Judgement-proof, Financial responsibility, Insurance, Moral hazard, Resource Conservation and Recovery Act, Environmental Economics and Policy, Public Economics, Risk and Uncertainty, |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:umdrwp:182293&r=env |
| By: | Kirsten Svenja Wiebe; Ulrike Lehr; Christian Lutz |
| Abstract: | Renewable energy deployment is growing rapidly on a global scale. China, Germany, Japan and the US are among the countries with highest capacity of renewables installed. In Germany, for example, the large growth in renewable power generation (RPG) capacities in the past has been mainly due to demand supporting policy measures (demand pull). Globally, increasing deployment also is accelerated by strongly decreasing costs of these technologies. Deployment, on the other hand leads to cost decreases via scale effects and this interdependence can be captured in learning curves, which is a concept used to model technological change. Using this concept it is possible to – at least partly – endogenize technological change in economic models. Introducing endogenous technological change is necessary to adequately analyze not only the direct effects of technological change, but also the indirect effects on important macro-economic indicators such as growth, employment, welfare and trade as well as their feedback to the electricity sector. In this paper a renewable power generation module for the INFORUM type econometric input-output models (see Eurostat, 2008, for more details) such as GINFORS (Lutz & Wiebe, 2012) and PANTA RHEI (Lehr et al., 2012) is developed. The energy sector modeling is based on the energy balances of the IEA. Renewables have only been a small aggregated part in the model previously, but are now included in more detail. In addition, this will be a first step to endogenize technological change in the model. Wind (on and offshore), PV, and concentrating solar power (CSP) generation technologies have been selected for further analysis. Their representation in the model is based on learning curves, which may, among other factors, depend on capacity installed, investment, R&D. We test both one factor and two factor learning curves (Wiesenthal et al., 2012) with learning rates estimated from the data and compared to existing studies. The electricity production is then calculated from capacity installed using the respective load hours of the year 2010, partly adapted if more information is available. This RPG extension of the econometric input-output model will contribute to a better understanding of the interaction between the deployment of renewable energy technologies and macro-economic indicators such as employment, GDP and sectoral production. The learning curves reflect both learning-by-doing and learning-by-searching. All of these factors develop endogenously in the model, but may also be influenced by policy measures. This approach will be a first step to endogenously determine the national investments in RPG technologies, electricity generation costs and global feedback loops of national policy measures (incl. export of policy measures) on RE investment and electricity production costs. Important results are exports and imports of RPG goods and services using assumptions regarding world market shares and trade shares, as well as the share of renewables in total electricity production and carbon emissions associated with electricity production. References Eurostat (2008): Eurostat Manual of Supply, Use and Input-Output Tables, Luxembourg. Lehr, U., Lutz, C. & Edler, D. (2012): Green jobs? Economic impacts of renewable energy in Germany. Energy Policy 40, DOI 10.1016/j.enpol.2012.04.076 Lutz, C. & Wiebe, K.S. (2012): Economic impacts of different Post-Kyoto regimes. International Journal of Energy Science 2(4), 163-168. Wiesenthal et al. (2012b). Technology Learning Curves for Energy Policy Support. EUR - Scientific and Technical Research Reports. JRC73231, doi:10.2790/59345. |
| Keywords: | Germany, Denmark, Spain, France, Italy, Portugal, United Kingdom, Japan, US, MENA, Rest of the World, Energy and environmental policy, Forecasting and projection methods |
| Date: | 2013–06–21 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:004912:5117&r=env |
| By: | Virginie Doumax; Jean-Marc Philip; Cristina Sarasa |
| Abstract: | The 2009 Directive on Renewable Energies (called RED) has set up ambitious targets concerning biofuels consumption in the European Union. This paper addresses this issue in the case of France, focusing on alternative tax policies designed to stimulate biofuels consumption. Our main objective is to determine under what circumstances tax policies could help the French government to achieve the 2020 biofuels consumption mandate. A common response is to increase taxes on fossil fuels in order to enhance the price competitiveness of their renewable substitutes on the fuel market. However, recent studies (Timilsina et al., 2011a; Barker et al., 2008; Weber et al., 2005) have shown that the way the government uses the tax revenue is a key determinant. Indeed, recycling the tax revenue to households through a lump-sum rebate is not an efficient strategy since the impact on biofuels consumption is limited, even with higher tax rates. Hovewer, when the tax revenue is used to finance a biofuel subsidy, the market penetration of biofuels increases significantly. On the other hand, some studies underline the role of oil prices in the expansion of biofuels worldwide. Timilsina et al. (2011b) show that if oil prices rise 150% from their 2009 levels by 2020, the resulting penetration of biofuels would be 9%. But they don’t take into account the context of rising oil prices into a tax policy analysis. With these questions in mind, we propose to go further and to combine both features, tax policies and rising oil prices, into a same model. The aim is to determine the minimal level of additional taxes on fossil fuels needed to achieve the 2020 biofuels target when oil prices increase. On the other hand, we take into account the budgetary constraints of the government by eliminating the differential tax rate between fossil fuels and renewable fuels. To do it, we increase the level of the excise-tax on biofuels by 35% in order to observe if the 2020 biofuels target could be also reached under this assumption. For this purpose, we develop a multi-sector, recursive dynamic computable general equilibrium (CGE) model calibrated on 2009 French data. Standard CGE models take into account the various inter-linkages between economic sectors and are particularly useful for the evaluation of tax policies. Our first scenario consists in designing different tax schemes on fossil fuels. We compare the level of additional taxes required to reach the 2020 consumption target when the tax rate increases progressively and when the rise is less graduated. Then, in a second scenario, we wonder which would be the level of taxes on fossil fuels to reach the 2020 consumption target when the excise-tax rate on biofuels is increased. In a third scenario, we combine the precedent simulation with an exogenous increase of oil prices with the assumption that future evolution of oil prices will follow the trend observed on the past period. This paper also investigates the economy-wide effects of these alternative scenarios, notably on the agricultural sector. Indeed, the impacts of a larger expansion of biofuels may increase the agricultural outputs, while an exogenous increase of oil prices may lead to an output drop. Finally, we introduce explicitly biofuels by-products in the analysis, notably oilseed meals, in order to check if their presence reduces the price impacts of the biofuel production. Indeed, recent studies (for e.g. Taheripour et al., 2010) have shown that the presence of by-products could mitigate the price impacts of biofuel production. Results of scenarios 1 and 2 suggest that the target could be achieved with acceptable levels of taxation. Nevertheless, scenario 2 implies higher tax rates on fossil fuels and larger but limited welfare losses. The needed level of additional taxes is lower when it is analyzed in a context of rising oil prices, as it was expected. Besides, we find that the development of biofuel consumption only partially offsets the depressive effect of oil prices on the agricultural output. The introduction in the model of biofuels by-prducts reveals smaller changes in agricultural prices, particularly in the livestock sector, confirming that models that omit by-products may overstate the economic impacts of biofuels mandates. |
| Keywords: | The model concerns the French national economy., Energy and environmental policy, Agricultural issues |
| Date: | 2013–06–21 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:004912:5417&r=env |
| By: | Asian Development Bank (ADB); (Regional and Sustainable Development Department, ADB); ; |
| Abstract: | The water–food–energy nexus is emerging as a critical issue in Asia and the Pacific. It is clear that solutions must be found to assure water security, thereby eliminating the immediate—and increasing—risk to food security, energy security, and economic growth and stability: water must be recognized as an economic as well as a social good. Governments need to be encouraged to think differently about water, take the longer-term view, and be mindful of the strategic and economic value of this limited resource. This publication is the result of a scoping study initiated by the Asian Development Bank to better understand the issues associated with the water–food–energy nexus in Asia and the Pacific. It provides high-level guidance on the choices available to address the region's water security issues. |
| Keywords: | water, food, energy, water secure future, water security, food security, energy security, water scarcity, water stress, supply-demand gap, economics of water, water-food-energy nexus, integrated water resource management, basin management, climate change, biodiversity, resource sustainability, governance, institutional capacity, resource protection, productivity, efficiency, data |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:asd:wpaper:rpt125184&r=env |
| By: | Olivia Ricci; Sandrine Selosse; Sabine Garabedian; Nadia Maizi |
| Abstract: | Declared in 2010 as a UNESCO world heritage site, the overseas French Region of La Reunion – Reunion Island – has adopted a strategy for sustainable development which aims to attain energy autonomy by 2030. With currently half of the island’s power generated by coal-fired power plants, this unique European territory in the Indian Ocean has large potential for renewable energy generation (solar, marine, wind and biomass) and so largely bases the achieving of this goal on the development of these renewable energy sources. Since 2007, La Réunion has implemented the GERRI project, Green Energy Revolution, where all low carbon innovations are promoted in order to be integrated into the society by 2030; this includes transport, energy production, storage and use, town planning and construction. This also includes tourism, La Reunion aiming to develop an ecological tourism sector with the objective of welcoming 600,000 tourists by 2020. The Reunion’s plan for making its electricity system 100% renewable involves a multi-fold process. The French Minister of Ecology already mandated in April 2009 that all new constructions in overseas departments to install solar hot water heating on all new construction. Additionally, biomass will increasingly substitute coal, which will entail the development of more fibrous sources of sugarcane, supported by an increase in cane farms that also produce solar power. Increased hydropower and geothermal energy will also enter the mix, along with experimenting with tidal power. These measures will also help the island achieve its goal to meeting all heating and cooling needs with renewable resources. The aim of this study is to discuss the large integration of renewable energy in the Reunion power system through the bottom-up energy model TIMES-Reunion (Drouineau, 2011; Bouckaert, 2013). This research is developed with TIMES-Reunion, a bottom-up model describing the small and isolated energy system in great detail of current and future technologies (Drouineau, 2011). This technological model is drived by an exogeneous energy demand and aims at minimize the global discounted cost of the energy system. The time horizon range from 2008 to 2030. We investigate different scenarios binding the target of 100% renewables sources in power generation by 2030 and specifying potentials for renewable energy sources. Moreover we implement sensitivity analysis especialy based on solar, ocean energy, geothermal and sugarcane. We analyse the changes of the current production patterns to move toward a system capable of meeting the energy challenge. In the business as usual, the Reunion electricity production doubles from 2008 to 2030, in particular based on the development of coal. The oil becomes missing in 2015, coal being more profitable, and the share of renewables stabilizes around 35% by 2030. Despite tremendous potential of renewable present on the island, a transition to a 100% renewable energy needs being supported by incitations or constraints. We analyse the impact on the electricity mix of changes in the level of renewables potentials. Particularly, we discuss the level of development of solar and wave/ocean energies. We also explore the impact on the system of strong political choices on 1) the development of geothermal through the authorization to exploit geothermal energy in a protected natural area and 2) the exploitation of 100% energy-sugarcane. Then, in respect with the large development of renewables as solar and wind, we investigate scenarios dealing with the management of intermittent energy including exploitation rule in line with the decision of the network operator (rule of 30% of intermittent energy). |
| Keywords: | Reunion Island, Energy and environmental policy, Impact and scenario analysis |
| Date: | 2014–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:006356:7069&r=env |
| By: | Ihtiyor Bobojonov; Dr. Aden Aw-Hassan |
| Abstract: | There are several regional trade agreements made amongst Central Asian countries during the transition period. However, the implementation of these agreements remains very restricted which causes limited exchange and flow of agricultural commodities between the countries. The market imperfections caused by state policies, poor market infrastructure and trade restrictions remain as the main challenge for small scale producers in Central Asia. This study analyses input and output price differentiations between the countries and main factors causing those prices. Furthermore, the paper examines the impact of easing those trade barriers on farm level welfare, especially under different climate change scenarios. Therefore, the paper aims at filling in the gap of knowledge about effects of trade barriers on farm gate prices and farmers’ welfare in Central Asia. The farm level prices, production and consumption patterns are analyzed using the data obtained from farm surveys conducted in Kazakhstan, Uzbekistan, Kyrgyzstan and Tajikistan. Changes in income and expenditure under trade liberalization at country, region (Central Asia and CIS) and world market level is estimated. Per capita income and expenditure changes are estimated for alternative market conditions. The impact of climate change on farm utilities is analyzed using integrated modeling tool which incorporates the climate change module and crop growth simulation model in the expected utility framework. The results show significant difference of farm gate prices of many agricultural commodities except wheat. Salient differences also found between the energy and fertilizer prices among these countries. Political disputes between some Central Asian countries are explained to be the main challenge for restricted trade between the countries. Liberalization of trade may create favorable economic conditions for many regions in Central Asian countries. However, potential gains from market integration are very region and country specific. The integrated model results show that easing commodity exchange between the countries may improve the adaptive capacity of the small scale producers especially in Uzbekistan, Tajikistan and Kyrgyzstan under different climate change scenario. |
| Keywords: | Kazakhstan, Uzbekistan, Tajikistan, Kyrgyzstan, Agriculture, Regional integration |
| Date: | 2013–09–05 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:005741:5946&r=env |
| By: | Reza Bagherian; Majid Sanaei |
| Abstract: | The degree of popular participation in development programs is a major determinant of success or failure but the factors which make participation efforts successful still remained a mystery. Many studies have developed numerous and sometimes different views concerning to the dimensions of participation. Most of these literature's tends to be descriptive and rarely applies theory. This study was designed to analyze and modeling the people participation in Watershed Management Programs in Iran by using the framework of social exchange theory and determine the role of this theory in explaining people participate in Watershed Management Programs.In this Research we have modeled social exchange theory as an approach to people participation in watershed resources management projects in Iran.Multiple regression analysis discovered that exchange factors explained 33 percent of variation in the level of people participation in watershed management programs. This study found that social exchange theory is an appropriate perspective to explain level of people participation but participation is a complex issue and future researchers might use multiple perspectives for explaining participation. |
| Keywords: | Iran, Environmental and water issues, Agriculture |
| Date: | 2013–09–05 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:005741:5817&r=env |
| By: | Arik Levinson |
| Abstract: | From 1990 to 2008, the real value of US manufacturing output grew by one-third while the pollution emitted from US factories fell by two-thirds. What accounts for this cleanup? Prior studies have documented that a relatively small share can be explained by changes in the composition of US manufacturing – a shift towards producing relatively more goods whose production processes involve less pollution. Those studies attribute the unexplained majority to “technique”, a mix of input substitution, process changes, and end-of-pipe controls. But because that technique effect is a residual left over after other explanations, any errors or interactions in the original calculation could inflate the estimated technique. In this paper I provide the first direct estimate of the technique effect. I combine the National Emissions Inventories with the NBER-CES Manufacturing Industry Database for each of over 400 manufacturing industries. I aggregate across industries using analogs to the Laspeyres and Paasche price indexes for each of six major air pollutants. The calculations using this direct estimation of the technique effect support the research findings using indirect measures. From 1990 to 2008, production technique changes account for more than 90 percent of the overall cleanup of US manufacturing. |
| JEL: | Q55 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20399&r=env |
| By: | Antoine Bommier (ETH Zurich, Switzerland); Lucas Bretschger (ETH Zurich, Switzerland); François Le Grand (EMLyon Business School) |
| Abstract: | The paper proves the existence of equilibrium in nonrenewable resource markets when extraction costs are non-convex and resource storage is possible. Inventories flatten the consumption path and eliminate price jumps at the end of the extraction period. Market equilibrium becomes then possible, contradicting previous claims from Eswaran, Lewis and Heaps (1983). We distinguish between two types of solutions, one with immediate and one with delayed build-up of inventories. For both cases we do not only characterize potential optimal paths but also show that equilibria actually exist under fairly general conditions. It is found that optimum resource extraction involves increasing quantities over a period of time. What is generally interpreted as an indicator of increasing resource abundance is thus perfectly compatible with constant resource stocks. |
| Keywords: | Exhaustible resources; nonconvex extraction cost; equilibrium existence; resource storage. |
| JEL: | Q30 C62 D92 D41 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:14-203&r=env |
| By: | Ashish R. Hota; Siddharth Garg; Shreyas Sundaram |
| Abstract: | We study a common-pool resource game where the resource experiences failure with a probability that grows with the aggregate investment in the resource. To capture decision making under such uncertainty, we model each player's risk preference according to the value function from prospect theory. We show the existence and uniqueness of a pure strategy Nash equilibrium when the players have arbitrary (potentially heterogeneous) risk preferences and under natural assumptions on the rate of return and failure probability of the resource. Greater competition, vis-a-vis the number of players, increases the failure probability at the Nash equilibrium, and we quantify this effect by obtaining (tight) upper bounds on the failure probability at the equilibrium for a large number of players with respect to the failure probability under investment by a single player. We further examine the effects of heterogeneity in risk preferences of the players with respect to two characteristics of the prospect-theoretic value function: loss aversion and diminishing sensitivity. Heterogeneity in attitudes towards loss aversion always leads to higher failure probability of the resource at the equilibrium when compared to the case where players have identical risk preferences, whereas there is no clear trend under heterogeneity in the diminishing sensitivity parameter. |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1408.5951&r=env |
| By: | Patrick Doupe (Potsdam Institute for Climate Impact Research) |
| Abstract: | To measure the deforestation reduced by a policy, we need to compare deforestation rates under a policy with deforestation rates in the absence of policy. Unfortunately the deforestation rate in the absence of a policy, or reference rate, is ex ante difficult to forecast and ex post impossible to observe. This means that reference rates will be set with error and we will not know how large the error will be. The challenging nature of setting reference rates is reflected in the number of proposals for reference rate design. In this paper I show how these proposals ignore forecast error. As a consequence, these proposals have basic structural weaknesses that in- crease the costs of reduced deforestation policy. I propose that a criteria for reference rates is to minimise the cost of forecast error. These ideas are illustrated with a cross country dataset on agricultural expansion. I show that the best forecasting model differs by country and that a countryÕs best forecasting model can be very simple. |
| Keywords: | climate policy, reduced deforestation, forecasting |
| JEL: | C53 Q5 Q57 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:een:ccepwp:1415&r=env |
| By: | Sheila M. Olmstead; Hilary Sigman |
| Abstract: | This paper examines whether countries consider the welfare of other nations when they make water development decisions. We estimate econometric models of the location of major dams around the world as a function of the degree of international sharing of rivers. We find that dams are more prevalent in areas of river basins upstream of foreign countries, supporting the view that countries free ride in exploiting water resources. We find weak evidence that international water management institutions reduce the extent of such free-riding. |
| JEL: | F53 Q25 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20389&r=env |
| By: | Jan Melichar; Kateřina KAPROVÁ; Milan ŠČASNÝ |
| Abstract: | Driving forces, economic transformation, suburbanisation, migration and recent construction of linear infrastructures have inevitably contributed to unfavourable land use trends around Europe. Arable land area has been continuously declining and has been replaced by artificial and built-up areas or other transformed areas (transport infrastructure). The construction of transport structures leads to fragmentation of the landscape and threatens the existence of many species. On the other hand, land use trends are more favourable in remote areas, which are not so economically attractive. The overall objective of our study is to provide an integrated assessment of land-use patterns that have been induced in Europe since 1990. We develop an integrative approach that enables us to investigate the impacts of driving forces on the state of ecosystems and biodiversity. The biodiversity change is measured by the Mean Species Abundance index, which comes from the family of approaches based on ecosystem intactness. Integrated assessment of biodiversity and land use changes based on Corine Land Cover data (CLC 1990, 2000, 2006) combines several methodological approaches including GIS, decomposition and econometric analysis. Regionally differentiated MSA indicator, according to NUTS 3 regions, was analysed using an index-based decomposition (additive and multiplicative methods linked to Divisia and Laspeyres index) and log-linear and weighted least squares regressions in order to assess the effects of driving forces such as change in economic scale and its regional structure. See above See above |
| Keywords: | NA, Agricultural issues, Agricultural issues |
| Date: | 2013–06–21 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:004912:5613&r=env |
| By: | Isabel Teichmann |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwddc:dd73&r=env |