nep-env New Economics Papers
on Environmental Economics
Issue of 2014‒11‒22
38 papers chosen by
Francisco S. Ramos
Universidade Federal de Pernambuco

  1. The Impact of Environmental Taxes on Firm’s Technology and Entry Decisions By Ana Espinola-Arredondo; Boying Liu
  2. Estimation of China Sectoral Emission Intensity: Based on Input-Output Model By Xueting Zhao
  3. Going Forward by Looking Backwards on the Environmental Kuznets Curve: an Analysis of CFCs, CO2 and the Montreal and Kyoto Protocols By Thomas Longden
  4. The European Emissions Trading System (EU ETS): Ex-Post Analysis, the Market Stability Reserve and Options for a Comprehensive Reform By Brigitte Knopf; Nicolas Koch; Godefroy Grosjean; Sabine Fuss; Christian Flachsland; Michael Pahle; Michael Jakob; Ottmar Edenhofer
  5. Revisiting carbon Kuznets curves with endogenous breaks modeling: Evidence of decoupling and saturation (but few inverted-Us) for individual OECD countries By Liddle, Brantley; Messinis, George
  6. “Industrial Emissions Abatement: Untangling the Impacts of the EU ETS and the Economic Crisis” By Germà Bel; Stephan Joseph
  7. Estimating the recreational value of Kakum National Park in Ghana By Ankomah, Emmanuel; Adu, Kofi Osei
  8. Private provision of public goods: Do individual climate protection efforts depend on perceptions of climate policy? By Joachim Schleich; Claudia Schwirplies; Andreas Ziegler
  9. Corporate Environmental Initiatives and Shareholder Value: Focusing on the Role of Environmental Information and Its Credibility By Kimitaka Nishitani; Katsuhiko Kokubu
  10. Globalisation, energy usage and sustainability By Raza, Mohsin; Elahi, Muhammad Ather
  11. Reducing Greenhouse Gas Emissions in the Food Sector: Effects of Corporate Responsibility By Linda Kleemann; Donal Murphy-Bokern
  12. The determinants of CO2 emissions: empirical evidence from Italy By Cerdeira Bento, João Paulo
  13. Models of Green Economy in Arab Countries Using the Environmental Performance Index By Driouchi, Ahmed; El Alouani, Hajar
  14. Economic incentives for carbon sequestration: A review of the literature By Aklilu, Abenezer; Gren, Ing-Marie
  15. Multicriterial Assessment of RES- and Energy-Efficiency Promoting Policy Mixes for Russian Federation By Didenko, Alexander
  16. Linkage of Greenhouse Gas Emissions Trading Systems: Learning from Experience By Ranson, Matthew; Stavins, Robert N.
  17. To mitigate or to adapt? Collective action under asymmetries in vulnerability to losses By Esther Blanco; E. Glenn Dutcher; Tobias Haller
  18. Knowledge Spillovers from Clean and Dirty Technologies By Antoine Dechezleprêtre; Ralf Martin; Myra Mohnen
  19. Highway toll and air pollution: evidence from Chinese cities By Fu, Shihe; Gu, Yizhen
  20. Collinsville solar thermal project: Yield forecasting – Final report By Bell, William Paul; Wild, Phillip; Foster, John
  21. Carbon and Energy Prices: Surfing the Wavelets of California By Rita Sousa; Luís Francisco Aguiar-Conraria; Maria Joana Soares
  22. ADB Brief 20: A Safe Space for Humanity: The Nexus of Food, Water, Energy and Climate By Asian Development Bank (ADB); ; ;
  23. Climate Change, Trade, and Competitiveness: Climate Trade Performance of India, SAARC and Asia Pacific Region By Dinda, Soumyananda
  24. The Role of Renewable Energy Laws in Expanding Energy from Non-Traditional Renewables By Nancy McCarthy; Heath Henderson
  25. Carbon Lock-In: The Role of Expectations By Gerard van der Meijden; Sjak Smulders
  26. Expanding the Horizon: An Empirical Study of Sustainable Supply Chain Management and Firm Performance By Xichen Sun; Michiyuki Yagi; Katsuhiko Kokubu
  27. Nonlinear time series analysis of annual temperatures concerning the global Earth climate By Halkos, George; Tsilika, Kyriaki
  28. Economic Costs of Inadequate Water and Sanitation: South Tarawa, Kiribati By Asian Development Bank (ADB); ; ;
  29. The Swedish car fleet model By Beser Hugosson, Muriel; Algers, Staffan; Habibi, Shiva; Sundbergh, Pia
  30. Proceedings "Competitiveness of agro-food and environmental economy",2013 By Gabriel, Popescu; Nicolae, Istudor; Dan, Boboc
  31. The Passive Use Value of the Mediterranean Forest By Vladimir Otrachshenkoy
  32. Comparing Feed-In Tariffs and Renewable Obligation Certificates - The Case of Repowering Wind Farms By Tim Mennel; Teresa Romano; Sara Scatasta
  33. Diagnosing Deep Roots of Development: Genetic, Disease and Environmental Factors By Johannes W. Fedderke, Robert E. Klitgaard, James P. MacMurray, Valerio Napolioni
  34. Efficient water management: way forward to climate smart grain legumes production By Singh, Anil Kumar; Singh, K.M.; Bhatt, B.P.
  35. Six or four seasons? An evidence for seasonal change in Bangladesh By Islam Moinul; Koji Kotani
  36. Green Lights: Quantifying the economic impacts of drought By Peter Fisker
  37. The Economics of Transboundary River Management By Erik Ansink; Harold Houba
  38. Do Organic Inputs in African Subsistence Agriculture Raise Productivity? Evidence from Plot Data of Malawi Household Surveys By Wouter Zant

  1. By: Ana Espinola-Arredondo; Boying Liu (School of Economic Sciences, Washington State University)
    Abstract: This paper investigates conditions under which the regulator can strate- gically set an emission fee as a tool to induce Örms to adopt a green tech- nology and, also, promote (or hinder) entry deterrence. We consider a market in which a monopolistic incumbent faces the threat of entry, and Örms can choose between a dirty and a green technology. Our results show that, despite the fact of facing a polluting incumbent, an entrant might Önd it proÖtable to join the market and acquire a clean technology if the environmental tax is stringent enough and the technology is e§ective eliminating pollution. We also demonstrate that a duopoly, in which all Örms acquire green technology, is socially optimal if the technology cost is low and the environmental damage is su¢ ciently high. However, if the environmental damage is low, a partially clean duopoly (in which only one Örm adopts the green technology) is socially optimal under less restrictive conditions on the cost of clean technology
    Keywords: Adoption; Market Structure; Emission ta
    JEL: H23 L12 Q58
    Date: 2014–10
  2. By: Xueting Zhao (Regional Research Institute, West Virginia University)
    Abstract: With strong economic growth, China’s energy consumption and CO2 emissions grow quickly. The energy shortage and environmental problem have become the bottleneck of further economic growth. The most popular method to estimate the environmental impact is the Environmental input-output analysis, and the most important data support is the sectoral emission intensities. This Resource Document describes the process to estimate the China sectoral CO2 emission intensities based on the Disaggregated Input-Output table (suggest to read the Technical Document: Disaggregating Input-Output Models). This document includes the data sources, calculation process and the procedural notes.The calculation includes both the national China and Shanxi province.
    Keywords: China, Sectoral, Emission Intensity, Input-Output
    JEL: C67 Q53 R15
    Date: 2014–10
  3. By: Thomas Longden (Fondazione Eni Enrico Mattei (FEEM))
    Abstract: The success of the Montreal Protocol in comparison to the stagnation seen in negotiations surrounding the Kyoto Protocol highlights the importance of a supportive industry group, pre-existing legislation and commitment by a lead nation, affordable and available substitutes, as well as acceptance of the underlying scientific explanation of the link between emissions and a key detrimental impact. The focus on these contrasting intergovernmental agreements within this paper is driven, in part, by the intention to establish that successful emission reductions tend to be associated with a concerted policy effort rather than the level of per capita income. This is in contrast to the concept of the Environmental Kuznets Curve (EKC) which contends that a significant negative relationship exists between high levels of national income and per capita emissions. While a nation’s level of development and national income are likely to be linked to an ability to make structural changes and/or the implementation of environmental policy, this paper finds no evidence of an EKC consistent quadratic relationship between income and CFC emissions once key considerations, such as biased estimations and policy effort, have been accounted for.
    Keywords: Environmental Kuznets Curve, Montreal Protocol, Kyoto Protocol
    JEL: Q5 Q50 Q58
    Date: 2014–09
  4. By: Brigitte Knopf (Potsdam Institute for Climate Impact Research); Nicolas Koch (Mercator Research Institute on Global Commons and Climate Change; Berlin); Godefroy Grosjean (Potsdam Institute for Climate Impact Research); Sabine Fuss (Mercator Research Institute on Global Commons and Climate Change, Berlin and International Institute for Applied Systems Analysis, Laxenburg); Christian Flachsland (Mercator Research Institute on Global Commons and Climate Change, Berlin); Michael Pahle (Potsdam Institute for Climate Impact Research); Michael Jakob (Potsdam Institute for Climate Impact Research and Mercator Research Institute on Global Commons and Climate Change, Berlin); Ottmar Edenhofer (Potsdam Institute for Climate Impact Research, Mercator Research Institute on Global Commons, Berlin and Climate Change and Technische Universität, Berlin)
    Abstract: The central pillar of European climate policy, the European Emissions Trading System (EU ETS), is currently under scrutiny, as the allowance price is persistently low at around 5€/tCO2. The cap was met and emissions actually declined in recent years, ensuring the environmental effectiveness of the scheme. However, the low price may affect the long-term cost-effectiveness of the instrument by reducing the incentive for investment and deployment of low carbon technologies. No significant increase in the allowance price is expected before 2020, and probably not beyond, without reform. While the reasons for the price decline are controversial, empirical analysis shows that only a small portion of price fluctuations can be explained by factors such as the economic crisis, renewable deployment or international offsets. Therefore, it is likely that political factors and regulatory uncertainty have played a key role in the price decline. As a consequence, any reform of the EU ETS has to deliver a mechanism that reduces such uncertainty and stabilizes expectations of market participants. The Market Stability Reserve proposed by the EU Commission is unlikely to address the current problem of price uncertainty and insufficient dynamic efficiency. The key element of the alternative reform proposal described in this paper is to set a price collar in the EU ETS with lower and upper boundaries. This is likely to reinforce the long-term credibility and reliability of the price signal. In addition, a price for GHG emissions not covered by the EU ETS has to be set. If additional market failures prevent the market from functioning efficiently, specific policy instruments related to innovation and technology diffusion should be implemented in addition to carbon pricing. Carbon leakage could be addressed through tailor-made trade policies. In parallel, increasing the coalition of countries included in the carbon pricing should remain a priority. This reform package would bring the EU ETS back to life, while avoiding a relapse into potentially costly and inefficient national climate and energy policies.
    Keywords: EU ETS, Emissions Trading, Carbon Price, Price Collar, Market Stability Reserve, Credibility
    JEL: Q42 Q48 Q54 Q58
    Date: 2014–09
  5. By: Liddle, Brantley; Messinis, George
    Abstract: This paper tests for a carbon Kuznets curve (CKC) by examining the carbon emissions per capita-GDP per capita relationship individually, for 23 OECD countries over 1950-2010 using a reduced-form, linear model that allows for multiple endogenously determined breaks. This approach addresses several important econometric and modeling issues, e.g., (i) it is highly flexible and can approximate complicated nonlinear relationships without presuming a priori any particular relationship; (ii) it avoids the nonlinear transformations of potentially nonstationary income. For 15 of 23 countries studied, the uncovered emission-income relationship was either (i) decoupling—where income no longer affected emissions in a statistically significant way, or (ii) saturation—where the emissions elasticity of income is declining, less than proportional, but still positive. For only four countries did the emissions-income relationship become negative—i.e., a CKC. In concert with previous work, we conclude that the finding of a CKC is country-specific and that the shared timing among countries is important in income-environment transitions.
    Keywords: CO2 emissions; Environmental Kuznets curve; OECD countries; nonlinear flexible form; multiple endogenous breaks; income-emissions elasticities
    JEL: C22 C50 O44 Q43 Q56
    Date: 2014
  6. By: Germà Bel (Faculty of Economics, University of Barcelona); Stephan Joseph (Faculty of Economics, University of Barcelona)
    Abstract: In this study we use historical emission data from installations under the European Union Emissions Trading System (EU ETS) to evaluate the impact of this policy on industrial greenhouse gas emissions during the first two trading phases (2005-2012). As such the analysis seeks to disentangle two causes of emission abatement: that attributable to the EU ETS and that attributable to the economic crisis that hit the EU in 2008/09. Using a panel data approach the estimated emissions reduction attributable to the EU ETS is about 21% of the total emission abatement during the observation period. These results suggest therefore that the lion’s share of abatement was attributable to the effects of the economic crisis, a finding that has serious implications for future policy adjustments affecting core elements of the EU ETS, including the distribution of EU emission allowances.
    Keywords: Climate policy; European Union Emissions Trading System; panel data analysis; verified emission data JEL classification: C23 O13 Q54 Q58
    Date: 2014–10
  7. By: Ankomah, Emmanuel; Adu, Kofi Osei
    Abstract: National parks and Conservational area in general play major role in human life. They serve as habitats for animals and insects, protection of water bodies, carbon sequestration, recreational sites, source of income and source of revenue to government. Notwithstanding these benefits there are reports of the destruction and degradation of the natural ecosystem worldwide. This situation has led to serious environmental problems such as loss of biodiversity, global warming, climate change and its attendant effects. If forest reserves come with so many benefits as enumerated above, why then are they being degraded? This study sought to estimate the recreational value of Kakum national park in Ghana. To be able to give an estimate of the recreational value, an economic valuation technique called the Travel Cost method was applied. The travel cost method is a survey based method that uses the cost of travelling to a site to estimate the demand function for the site. The data used for the study was obtained from 300 visitors to the Kakum National Park from August 12 – 14, 2013. The recreational value of the KNP was estimated to be GH¢981,188 in 2013. Based on the findings, the study recommended the following; increased advertisement of the park, provision of additional facilities at the park and public education on the importance of recreation.
    Keywords: Recreational value, national park.
    JEL: Q2 Q23 Q26
    Date: 2014–09–14
  8. By: Joachim Schleich (University of Karlsruhe); Claudia Schwirplies (University of Kassel); Andreas Ziegler (University of Kassel)
    Abstract: This paper extends the economic literature on the private provision of public goods by examining the relevance of perceptions of climate policy to voluntary contributions to the public good of climate protection. Based on an analytical model which allows for perceptions of climate policy such as justification of international climate policy, procedural trust and procedural justice to affect voluntary climate protection activities, we examined data from representative surveys among citizens in the USA and Germany. Our microeconometric analysis confirmed the prediction that the perceived justification of international climate policy is positively related to voluntary contributions to climate protection in both countries. We also found empirical support (mainly for the USA) that higher perceived procedural justice lowers citizens' propensity to adopt climate protection activities. In contrast, we found no support that higher perceived procedural trust reduces citizens' propensity to adopt such measures. In a broad interpretation, our empirical results imply that individuals' perceptions about the process of providing public goods should also be considered when analyzing the factors explaining voluntary individual contribution to public goods.
    Keywords: Public good, voluntary contribution, perceptions of international climate policy, climate protection activities
    JEL: H41 Q54 Q58
    Date: 2014
  9. By: Kimitaka Nishitani (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan); Katsuhiko Kokubu (Graduate School of Business Administration, Kobe University)
    Abstract: The goal of this paper is to perform an empirical analysis on the impact on shareholder value of corporate environmental initiatives, focusing on the environmental disclosure and its credibility. The authors verified their hypothesis regarding this, which states, "corporations' environmental initiatives improve shareholder value via release of environmental reports. This trend grows stronger when the credibility of the disclosed information is enhanced." The results of the empirical analysis supported this hypothesis. Specifically, it was revealed that corporations that conduct more environmental initiatives release more environmental reports, and corporations that release more environmental reports have higher shareholder value, and the increased credibility gained via the disclosure of information that includes third-party reviews strengthens this trend even further.
    Keywords: Environmental Disclosures, Environmental Initiatives, Economic Performance, Improvement in Productivity, Increase in Demand, Fixed Effects Instrumental Variables Model
    Date: 2014–10
  10. By: Raza, Mohsin; Elahi, Muhammad Ather
    Abstract: Energy usage plays vital role in the spread of globalisation, through the process of industrialization and free trade of goods and services, has posed challenges in achieving the goal of global sustainability. Industrialized world has economic growth based on fossil fuel which may lead to environmental degradation. Such economic growth has two problems related to the industrial process from the perspective of sustainable development: intensive use of natural resources as raw material and produced goods from industries; and harmful gases emitted as a consequence. The exploitation of natural resources for industrialized process will lead to unsustainability because of earth’s limits of reproduction. Similarly, GHG’s emission from industries responsible for global warming is the main cause of climate change will also lead towards unsustainability. This calls for the need of transformation in current industrial production pattern and switching to sustainable energy options for achieving goal of sustainability of globalisation.
    Keywords: globalisation, sustainability, alternative energy
    JEL: L52 L91 Q2 Q4
    Date: 2014–05–15
  11. By: Linda Kleemann; Donal Murphy-Bokern
    Abstract: The number of firms in the food and agriculture sector that have corporate responsibility (CR) strategies and corresponding reporting is growing rapidly. Many aim, amongst other objectives, to reduce greenhouse gas (GHG) emissions. The question we address here is to what extent such CR measures actually have the potential to significantly affect overall GHG emissions from the agriculture and food sector. We analyse the CR strategies of a sample of 40 firms and from this we provide an assessment of how corporate responsibility addresses GHG emissions. This is achieved in three steps. First, we assess to what extent CR activities are impacting on relevant emission sources. Second, we analyse their current reach and ambition in terms of change envisaged and their contribution to climate protection as a global public good. Third, we consider the drivers behind the development of corporate responsibility to mitigate greenhouse gas emissions in order to estimate the longevity and likely future ambition of these programmes. In addition, we identify firm characteristics that are correlated with strong corporate climate responsibility
    Keywords: greenhouse gas emissions, corporate responsibility, corporate climate responsibility, food value chains
    JEL: H23
    Date: 2014–10
  12. By: Cerdeira Bento, João Paulo
    Abstract: This paper investigates major determinants of CO2 emissions in a small open economy such as Italy over the period 1960-2012 using Granger causality and cointegration methods to ascertain short-run and long-run relationships between emissions, trade openness and energy consumption. The research findings do not support a possible decoupling between economic growth and energy consumption, so that energy conservation policies are expected to have a negative impact on economic growth. Therefore, the use of environmentally friendly and renewable energy sources, such as solar, hydro and wind power, should be further encouraged instead of fossil fuels ones.
    Keywords: Emissions, energy-GDP relationship; energy policy; cointegration; Italy
    JEL: C3 C32 Q4 Q43 Q50
    Date: 2014–10–08
  13. By: Driouchi, Ahmed; El Alouani, Hajar
    Abstract: Abstract This paper aims at characterizing the main trends affecting the environmental and greening economy systems in Arab countries. This is tackled through the use of data based on Environmental Performance Index (EPI) with statistical analysis of its related indicators. Promising results are attained based on descriptive statistics, trend and regression analyzes besides comparison of oil and non-oil exporting countries. The attained results show that Arab countries express different patterns with regard to environmental performance and greening of their economies while statistically significant differences appear between oil and non-oil exporters.
    Keywords: Keywords: green economy, environmental performance index, oil and non-oil exporting countries.
    JEL: O2 Q5
    Date: 2014–09–19
  14. By: Aklilu, Abenezer (Department of Economics, Swedish University of Agricultural Sciences); Gren, Ing-Marie (Department of Economics, Swedish University of Agricultural Sciences)
    Abstract: The main purpose of this study is to review studies in economics on policies for carbon sequestration. Specific design problems are associated with heterogeneous land holders, additionality and permanence in carbon projects, and the risk of leakage. It was found that a large part of the literature, which started in the late 1980s, has been focused on the calculation of costs for carbon sequestration, mainly in forests, and on calculations of cost savings from its introduction in climate programs. Results from the literature point to cost savings of up to 40%. The small body of literature on transaction costs, mainly attributed to monitoring and verification, indicates that these costs are modest. The literature on policy design is much more scant, and the main part suggests discounting of the carbon sink value to account for the uncertainty. Assessment of equilibrium prices in the many existing voluntary and regulatory carbon sink markets shows a lower price of carbon sink compared with certain abatement of fossil fuels. This can be explained by risk discounting. A few studies suggest contract design for self-enforcement of efficient carbon projects. This has not yet been implemented in carbon sink offsets in practice, the carbon trade of which corresponds to approximately 0.3% of all carbon trade.
    Keywords: economic incentives; carbon sequestration; policy design; survey
    JEL: Q52 Q54 Q58
    Date: 2014–11–03
  15. By: Didenko, Alexander
    Abstract: We focus on assessing RES- and energy-efficiency promoting policy mixes for Russia from multicriteria perspective with emphasis on GHG emission reduction. We start from two surveys: the first one studies country’s energy saving and RES potential to determine possible range of outcomes for policy mixes in question; the second one reviews corpus of relevant official documents to formulate policy alternatives, which the policymakers are facing. Our findings are then blended with forecasts of government and international agencies to obtain three scenarios, describing possible joint paths of development for Russian energy sector in the context of demographic, economic and climatic trends, as well as regulatory impact from three policy portfolios, for period from 2010 (baseline year) till 2050. Scenarios are modeled in Long-Range Energy Alternatives Planning (LEAP) environment, and the output in the form of GHG emissions projections for 2010-2050 is obtained. We then assess three policy portfolios with multi-criteria climate change policies evaluation method AMS. Our analysis suggests that optimistic scenario is most environmentally friendly, pessimistic one is easier to implement, and business-as-usual balances interests of all stakeholders in charge. This might be interpreted as an evidence of lack of governmental regulation and motivation to intervene in energy sector to make it greener and more sustainable.
    Keywords: regulatory impact assessment, multi-criteria evaluation, MCDA, AMS, MAUT, SMART, long-range energy alternatives planning (LEAP), climate policy, climate change, energy policy, mitigation/adaptation, RES promotion, energy efficiency, GHG emissions.
    JEL: Z00
    Date: 2013–09
  16. By: Ranson, Matthew (Abt Associates Inc); Stavins, Robert N. (Harvard University)
    Abstract: The last ten years have seen the growth of linkages between many of the world's cap-and-trade systems for greenhouse gases (GHGs), both directly between systems, and indirectly via connections to credit systems such as the Clean Development Mechanism. If nations have tried to act in their own self-interest, this proliferation of linkages implies that for many nations, the expected benefits of linkage outweighed expected costs. In this paper, we draw on the past decade of experience with carbon markets to test a series of hypotheses about why systems have demonstrated this revealed preference for linking. Linkage is a multi-faceted policy decision that can be used by political jurisdictions to achieve a variety of objectives, and we find evidence that many economic, political, and strategic factors--ranging from geographic proximity to integrity of emissions reductions--influence the decision to link. We also identify some potentially important effects of linkage, such as loss of control over domestic carbon policies, which do not appear to have deterred real-world decisions to link. These findings have implications for the future role that decentralized linkages may play in international climate policy architecture. The Kyoto Protocol has entered what is probably its final commitment period, covering only a small fraction of global GHG emissions. Under the Durban Platform for Enhanced Action, negotiators may now gravitate toward a hybrid system, combining top-down elements for establishing targets with bottom-up elements of pledge-and-review tied to national policies and actions. The incentives for linking these national policies are likely to continue to produce direct connections among regional, national, and sub-national cap-and-trade systems. The growing network of decentralized, direct linkages among these systems may turn out to be a key part of a future hybrid climate policy architecture.
    Date: 2013–11
  17. By: Esther Blanco; E. Glenn Dutcher; Tobias Haller
    Abstract: Many policies addressing global climate change revolve around the implementation of mitigation and adaptation strategies. We experimentally examine subjects? choices in a climate change game where subjects are put into groups where they face a potential damage and have the choice to invest resources into mitigation, adaptation and/or productive funds. Resources allocated to mitigation reduce the probability of the loss to the entire group while adaptation investments reduce the magnitude of the loss to the investing agent and productive investments increases payoffs only for the investing agent. We explore subject's response to three treatment conditions; high damage, low damage and heterogeneous damage. Results show that subjects view mitigation and adaptation funds as substitutes in that they contribute higher levels to the adaptation fund if low levels of contributions to the mitigation fund exist, but free-ride on others by contributing to the productive fund if contributions to the mitigation fund are high enough. In particular, we find the highest level of contributions to the socially efficient mitigation fund when all subjects in a group face a high damage and the lowest level when all subjects face a low damage. When high-damage subjects are mixed with low-damage subjects, their contribution levels to the mitigation fund decline, but are still greater than those of their low-damage group members.
    Keywords: Collective Action, Climate Change, Economic Experiments
    JEL: H41 H87 C92
    Date: 2014–10
  18. By: Antoine Dechezleprêtre; Ralf Martin; Myra Mohnen
    Abstract: How much should governments subsidize the development of new clean technologies? We use patent citation data to investigate the relative intensity of knowledge spillovers in clean and dirty technologies in two technological fields: energy production and transportation. We introduce a new methodology that takes into account the whole history of patent citations to capture the indirect knowledge spillovers generated by patents. We find that conditional on a wide range of potential confounding factors clean patents receive on average 43% more citations than dirty patents. Knowledge spillovers from clean technologies are comparable in scale to those observed in the IT sector. The radical novelty of clean technologies relative to more incremental dirty inventions seems to account for their superiority. Our results can support public support for clean R&D. They also suggest that green policies might be able to boost economic growth through induced knowledge spillovers.
    Keywords: Innovation spill-overs, Climate Change, Growth, Patents, Clean technology, Optimal climate policy
    JEL: O30 O44 Q54 Q55 Q58 H23
    Date: 2014–09
  19. By: Fu, Shihe; Gu, Yizhen
    Abstract: Most highways in urban China are tolled to finance their construction. During the eight-day National Day holiday in 2012, highway tolls are waived nationwide for passenger vehicles. We use this to test highway tolls’ effect on air pollution. Using daily pollution and weather data for 98 Chinese cities in 2011 and 2012 and employing both a regression discontinuity design and differences-in-differences method with 2011 National Day holiday as a control, we find that eliminating tolls increases pollution by 20% and decreases visibility by one kilometer. We also estimate that the toll elasticity of air pollution is 0.16. These findings complement the scant literature on the environmental impact of road pricing.
    Keywords: highway toll; air pollution; visibility; regression discontinuity design; differences-in-differences
    JEL: H23 Q53 R41 R48
    Date: 2014–10–30
  20. By: Bell, William Paul; Wild, Phillip; Foster, John
    Abstract: The primary aim of this report is to produce hourly yield projections of electricity power for the proposed LFR plant at Collinsville, Queensland, Australia based on the environmental condition between 2007 and 2013. However, the techniques and methods used to overcome the inadequacies of the environmental, site-specific datasets provide a wider appeal for the report. The dataset inadequacies make accurate projections of future income streams and the subsequent securing of funding difficult (Cebecauer et al. 2011; Lovegrove, Franklin & Elliston 2013; Stoffel et al. 2010). The hourly power yield projections from this report are used in our subsequent report called ‘Energy economics and dispatch forecasting’ (Bell, Wild & Foster 2014a), to calculate the lifetime revenue of the proposed plant and perform sensitivity analysis on gas prices. This report compares the yield from the proposed Collinsville LFR plant using two different calculation methods. One method simply uses complete historical datasets from three nearby sites: MacKay, Rockhampton, and Townsville in Queensland. The other method uses datasets derived from a meteorological model developed from three sources: - BoM’s hourly solar satellite data - BoM’s Collinsville Post Office weather station - Allen’s (2013) datasets The overarching research question for the report is: Can modelling the weather with limited datasets produce greater yield predictive power than using the historically more complete datasets from nearby sites?
    Keywords: Climate change, Collinsville, electricity demand, Demand management, dispatch forecasting, Electricity, Energy Consumption, Energy economics, Future proofing, LFR, Linear Fresnel Reflector, mitigation, Australian national electricity market, NEM, power purchase agreements, PPA, Queensland, Australia, Renewable energy, solar energy, solar thermal
    JEL: O3 Q4 Q5
    Date: 2014–11–04
  21. By: Rita Sousa (Universidade do Minho); Luís Francisco Aguiar-Conraria (Universidade do Minho - NIPE); Maria Joana Soares (Universidade do Minho)
    Abstract: Carbon price is a key variable in management and risk decisions in activities related to the burning of fossil fuels. Using innovative multivariate wavelet analysis, we study the link between carbon prices and primary and final energy prices in the time and frequency dimensions, particularly in longer cycles (4 ∼ 8 and 8 ∼ 20 months). We show a tight relation between carbon and electricity prices, co-moving together in one-year cycles, with electricity slightly leading, in opposition with previous results obtained for Europe. Thus, an over-allocation of allowances to the power generating sector is suggested. We also find indication of an out-of-phase relation between carbon and oil prices, with oil leading, and expect this relation to intensify when including fuel distributors in the CA market. Finally, and contrary to EU ETS previous results, we do not find a significant relation between carbon and economic activity. In conclusion, although our results are not as significant as the ones previously obtained by other authors, for Europe, they show that the variables are related in the longer term, which supports the development of emissions trading in the post-2020.
    Keywords: Carbon market; Energy prices; WCI; Multivariate wavelet analysis
    Date: 2014
  22. By: Asian Development Bank (ADB); (Regional and Sustainable Development Department, ADB); ;
    Abstract: The 20th Century saw major human triggered transitions that cumulatively are threatening the safety of the habitat for humans on planet earth. Population, resources, and the rapid accumulation of wealth all are intertwined in the 5 major transitions from the past to our new global future. These major transitions are: first, the “urban population transition;” second, the“ nutrition transition;” third, the “climate transition;” fourth, the “energy transition;” and, fifth, the “agricultural transition.” This policy brief focuses on the most salient problems arising from these global transitions that can be ameliorated by specific policy instruments in the short term.
    Keywords: adb, asian development bank, asdb, asia, pacific, poverty asia, food, water, energy, climate, land, agriculture, food-water-energy nexus, humanity, planet earth, urban population transition, nutrition transition, climate transition, energy transition, agricultural transition, adb brief 20, peter rogers, samuel daines
    Date: 2014–05
  23. By: Dinda, Soumyananda
    Abstract: This paper examines trade performance of climate friendly goods using some trade indices for India and other Asian countries during 2002 - 2008. Climate friendly goods (CFG) are those goods which have less harmful to environment. Paper identifies India’s performance in CFG trade with other Asian nations. Most of the countries in Asia are importers of climate friendly goods and technologies. The Comparative advantage analyses indicate that Hong Kong, China, and Japan have comparative advantage in the production of CFG goods and are net exporters of such products. The competitiveness measures also show that China, Hong Kong and Japan, and Asia Pacific region are major exporter of CFG during 2002-2008. Competitiveness of India, China and South Korea has improved in 2008. Pakistan, Sri-Lanka, and India prefer to trade in CFG regionally and have shown interest in production and trade of clean coal technologies (CCT). SAARC countries have developed expertise in the production of CCT. India and Pakistan enjoy comparative advantage in CCT trade. Few regions have comparative advantage in Solar Photovoltaic Systems (SPVS) and Energy Efficient Lighting (EEL). China is performing better than other in EEL. Japan, China, Malaysia and Macao show good in 2008 for SPVS. Japan, Philippines, China, Hong Kong and South Korea have a comparative advantage in production of other climate friendly items in 2008.
    Keywords: Competitiveness, trade performance, Climate friendly goods, CFG, Clean Coal Technology, CCT, Energy Efficient Lighting, EEL, Solar Photovoltaic System, SPVS, Wind Energy, Wind Technology, Asia, India, SAARC, ASEAN, Asia Pacific, Japan, China, Sri Lanka, Pakistan, Thailand, Malaysia, Macao, Hong Kong, South Korea, RCA, cleaner technology, climate trade
    JEL: C1 C13 F1 F14 F18 O1 O11 O14 Q2 Q27 Q5 Q56
    Date: 2011–04–18
  24. By: Nancy McCarthy; Heath Henderson
    Abstract: Many countries in Latin America and the Caribbean are interested in diversifying their energy sources for energy security and in contributing to the reduction of greenhouse gases. Non-traditional renewable energy (NTRE) sources, which include wind, solar, geothermal and small-scale hydropower, have received a lot of attention towards meeting these goals. To foster the expansion of NTRE, different countries have pursued different legal and regulatory approaches, but there remains very limited evidence regarding the effectiveness of different approaches. In this paper, we use a unique dataset that combines information on NTRE growth rates and information on the legal and regulatory framework, as well as other control variables, for 27 countries over the period 2001-2010. Legal and regulatory instruments include legally binding and non-binding quantity targets, contracts guaranteeing premium prices, fiscal incentives and import duty waivers, and guaranteed access to the grid. Using an information-theoretic Markov Chain analysis, results indicate that fiscal incentives and guaranteed access have relatively high impacts on transitions into high growth rates, whereas fiscal incentives and import duty waivers have relatively high impacts on transitions into moderate growth rates. Binding and non-binding agreements increase transitions out of negative and zero growth rates, but to relatively low positive growth rates. Contracts with premium subsidies also have limited impacts on transitions into high growth rates, though they are associated with transitions into the low growth category. These results provide additional evidence on which regulatory instruments have been most effective in aiding countries in expanding their NTRE.
    Keywords: Renewable energy, Energy policy, Environmental Policy, Regulatory framework, Renewable energy
    Date: 2014–08
  25. By: Gerard van der Meijden (VU University Amsterdam); Sjak Smulders (Tilburg University, the Netherlands)
    Abstract: We argue that expectations about future energy use affect the transition from fossil fuels to renewable substitutes, because of an interaction between innovation and resource scarcity. The paper presents a model of directed technical change to study this interaction. We find that resource-saving technical change erodes the incentives to implement the substitute. Conversely, the anticipation of the substitute being implemented in the future diminishes the incentives to invest in resource-saving technology. As a result, two dynamic equilibria may arise, one with a transition to the substitute and with low resource efficiency, and one without the substitute and with fast efficiency improvements. Expectations determine which equilibrium arises in the decentralized market equilibrium. If multiple equilibria exist, the transition to the substitute generates higher welfare.
    Keywords: Directed technical change, energy transition, multiple equilibria
    JEL: O30 Q32 Q42 Q55
    Date: 2014–08–01
  26. By: Xichen Sun (Student of Graduate School of Business Administration, Kobe University); Michiyuki Yagi (Interfaculty Initiative in the Social Science, Kobe University); Katsuhiko Kokubu (Graduate School of Business Administration, Kobe University)
    Abstract: As global competition is getting more and more intense, there is an increasing trend manifesting the increasing interest in sustainable supply chain management. This study introduces four sustainable supply chain indicators from the upstream (supplier), middle stream (focal firm) and downstream (customer) of a supply chain to empirically examine the relationship between sustainable supply chain performance and firm performance (ROA), as well as the relationship between environmental efficiency and other three indicators. It focuses on the Energy and Utilities industries. In this study we use global firm dataset from Bloomberg professional service, and the number of observation is 86 during 2005 to 2013. We find an inversely U-shaped curve relationship between environmental efficiency in supply chain and firm' s profitability (ROA); and a U-shaped relationship between investments in operational sustainability and firm' s profitability. Also a negative relationship is found between having a new product and ROA. We provide implications obtained from our analysis of regression results for managers. We contribute to the literature by responding to the call for more empirical research in this filed, providing the evidence that sustainable supply chain performance can bring actual benefits for the firm, as long as firms identify their own position accurately and take the right action.
    Keywords: sustainable supply chain, environmental efficiency, new product, firm performance
    Date: 2014–10
  27. By: Halkos, George; Tsilika, Kyriaki
    Abstract: This paper presents results concerning the nonlinear analysis of the mean annual value temperature time series corresponding to the Earth’s global climate for the time period of 713 – 2004. The nonlinear analysis consists of the application of several filtering methods, the estimation of geometrical and dynamical characteristics in the reconstructed phase space, techniques of discrimination between nonlinear low dimensional and linear high dimensional (stochastic) dynamics and tests for serial dependence and nonlinear structure. All study results converge to the conclusion of nonlinear stochastic and complex nature of the global earth climate.
    Keywords: Nonlinear dynamics; Correlation dimension, Lyapunov exponent; Mutual information function; Chaos.
    JEL: C80 C88 Q50 Q52 Q54
    Date: 2014
  28. By: Asian Development Bank (ADB); (Pacific Department, ADB); ;
    Abstract: The inadequate water supply and sanitation situation in South Tarawa has contributed to high rates of water-borne diseases and environmental degradation in the country’s main urban center. There has been limited capital investment in water supply and sanitation infrastructure and ongoing operations and maintenance in South Tarawa, in part, as a result of low cost recovery in service delivery. To enable more informed policy responses to address the current situation, this study seeks to estimate the total economic costs associated with inadequate water and sanitation services in South Tarawa.
    Keywords: Pacific, South Tarawa, Kiribati, water supply and sanitation, adb, asian development bank, asdb, asia, pacific, poverty asia, south tarawa, kiribati, water supply and sanitation, sewerage system, water contamination, water, sanitation, hygiene, diarrhea, water storage, water pollution, open defecation, WASH, groundwater supply, waterborne disease, dysentery, pit latrines
    Date: 2014–04
  29. By: Beser Hugosson, Muriel (KTH/TLA); Algers, Staffan (KTH/TLA); Habibi, Shiva (KTH/TLA); Sundbergh, Pia (Transport Analysis (Sweden))
    Abstract: The composition of the car fleet with respect to age, fuel consumption and fuel types plays an important role on environmental effects, oil dependency and energy consumption. In Sweden, a number of different policies have been implemented to support CO2 emission reductions. In order to evaluate effects of different policies, a model for the evolution of the Swedish car fleet was developed in 2006. The model has been used in a number of projects since then, and it is now possible to compare forecasts with actual outcomes. Such evidence is relatively rare, and we think it may be useful to share our experience in this respect. We give a brief overview of the Swedish car fleet model. Then we describe policies that have been implemented in recent years and the evolution of the Swedish car fleet. We then focus on two projects which enable comparison with actual outcomes, and analyse the differences between forecasts and outcomes. We find that the model has weaknesses in catching car buyers’ preferences of new technology. When this is not challenged too much, the model can forecast reasonably well on an aggregate level. We also find that he model is quite sensitive to assumptions on future supply. This is not so much related to the model, but to its use. Depending on the use of the forecasts – be it car sales, emissions or fuel demand – it may be necessary to use different supply scenarios to get an idea of the robustness of the forecast result.
    Keywords: Clean car policy; Car fleet model; Forecasting; Model evaluation; Scrapping model; Nested logit
    JEL: R40
    Date: 2014–09–29
  30. By: Gabriel, Popescu; Nicolae, Istudor; Dan, Boboc
    Abstract: The main goal of the conference Competitiveness of agro-food and environmental economy’ (CAFEE`13), was to debate new ideas provided by research along with experiences brought by institutional and business representatives in the field of rural development, agro-food economy, agro-food system, environmental policy and management. The Conference was held in November, 7-8, 2013, to the Faculty of Agro-food and Environmental Economics, Bucharest University of Economic Studies, Romania. The conference proceedings volume includes all the draft papers accepted and published in the proceedings of The 1st International Conference 'Competitiveness of agro-food and Environmental economy’ (CAFEE`13), organized by Faculty of Agro-Food and Environmental Economics and Research Center of Regional Analysis and Policies from The Bucharest University of Economic Studies, in partnership with Institute of Agricultural and Food Economics, National Research Institute, Poland, St James's Business School(UK), University of Verona – Italy, Institute of Agricultural Economics- Serbia, Faculty of Agriculture Zemun- Serbia, Institute of Agricultural Economics, Romanian Academy, Institute of Research for Agricultural Economics and Rural Development, Academy of Agricultural and Forestry Sciences – Romania and Faculty of Economic Sciences, Petroleum - Gas University of Ploiesti Romania.
    Keywords: competitiveness, agro-food, environmental economy, rural development
    JEL: A1 O1 Q1 Q18 Q5
    Date: 2013–11–13
  31. By: Vladimir Otrachshenkoy (Centro Euro-Mediterraneo sui Cambiamenti Climatici (CMCC), Fondazione Eni Enrico Mattei (FEEM) and Nova School of Business and Economics (Portugal))
    Abstract: In this study we estimate the passive use value of forest in different ecological zones in the Mediterranean region. We estimate these values for forests using meta-analysis. These estimates are used to reveal the annual monetary values per hectare for each country. The total annual amount of passive use value of the Mediterranean forest is about one billion international dollars. The estimated passive use value of the forest from this study can be used to account for the social welfare loss caused by fire, insects, diseases, biotic agents, and abiotic factors.
    Keywords: Forest, Mediterranean Region, Passive Use, Welfare Loss
    JEL: Q23
    Date: 2014–10
  32. By: Tim Mennel; Teresa Romano; Sara Scatasta
    Abstract: This paper compares support mechanisms for renewable energy with respect to their ex-ante effectiveness in promoting the adoption of innovative technologies. We analyse two stylized policy instruments in the context of the example of wind repowering: renewable quotas and feedin tariffs. Quota systems, such as the British Renewable Obligation Certificates (ROCs), are based on mandatory renewable quotas. Feed-in tariffs (FITs), such as the German EEG tariffs, guarantee a certain, fixed price for ’green’ electricity over the economic lifetime of the investment. This paper focuses on one aspect of the difference between the two instruments: the allocation of uncertainty. While under ROCs both electricity price and capital cost risks are borne by the owner of the wind farm, under FITs only capital cost risks remain with the owner. The model is calibrated on data for German wind power plants. Our general result is that the owner is more likely to adopt a new technology under price certainty as provided by FITs. Another finding is that electricity price and capital cost volatility have different impacts on the propensity to invest under ROCs. While, even a small positive variation in electricity price volatility increases the propensity to invest, an increase in capital cost volatility does not affect the likelihood to repower wind farms. The last result also applies under FITs.
    Keywords: renewable policy, technology diffusion, wind power
    JEL: Q28 H25 Q58
    Date: 2013
  33. By: Johannes W. Fedderke, Robert E. Klitgaard, James P. MacMurray, Valerio Napolioni
    Abstract: We examine the association between indicators of real GDP per capita and the ACP1 genetic adaptation to disease and ultraviolet radiation environment. We find a strong impact that varies across the A, B, and C alleles. The result is robust to controlling for reversal of fortunes, migration, and potential endogeneity of the genetic adaptation. It is also robust to controlling for other potential deep roots of development, geography, early adoption of technology, the population proportion that is European, and genetic diversity, as well as a range of factors held to be relevant by the economic growth literature. Policy prescriptions point to the importance of protection against ultraviolet radiation, control of tropical diseases, and the possible use of folic acid therapy and nutrient supplements in clearly identifiable geographic areas.
    Keywords: deep roots of development, acid phosphate locus 1, economic growth
    JEL: O1 O4 I15 I18
    Date: 2014
  34. By: Singh, Anil Kumar; Singh, K.M.; Bhatt, B.P.
    Abstract: The most important way to increase the grain yield of food legumes per unit area under stress environment should be consist of proper technological backup with infrastructure, timely availability of quality inputs along with policy support. Efficient water management is one of the critical inputs as in general perception is that legumes need no supplementary water, whereas research finding revealed that need based watering at critical stages are capable to improved production by 15-25 % depending up how much stress has already being faced by the standing crop till now.
    Keywords: climate change, legumes, water management, food security
    JEL: O1 Q1 Q16 Q25
    Date: 2014–07–15
  35. By: Islam Moinul (Tohoku University); Koji Kotani (Kochi University of Technology)
    Abstract: Bangladesh is reported to suffer from climatic changes, and many local people begin to wonder that six seasons in Bangladeshi annual calendar transition to four seasons where the traditional one (Bangla calendar) is considered to have consisted of the six seasons. We collected observations of key climate variables (1953-2010) from the weather station located in Dhaka, and conducted face-to-face surveys with 1,011 respondents and seven experts to elicit their current perception about whether six seasons are becoming four seasons. To scientifically confirm this, we apply nonparametric statistical methods to the key climate variables and test whether any pair of two neighboring seasons in Bangla calendar is converging into one. The statistical analysis shows “convergence†for specific two pairs of two neighboring seasons, meaning that the annual calendar now consists of four seasons, not six. Approximately 65% of respondents believe that annual calendar transitions to four seasons from six seasons. Overall, people’s perception and the statistical analysis are consistent each other. The effect of global climatic changes now becomes significant to the extent that local people correctly perceive some fundamental seasonal changes of annual calendar and it is really ongoing on the basis of our statistical analysis.
    Keywords: Climatic change, seasonal change, perception
    Date: 2014–10
  36. By: Peter Fisker (Department of Food and Resource Economics, University of Copenhagen)
    Abstract: This study investigates the effect of drought on economic activity globally using remote sensing data. In particular, predicted variation in greenness is correlated with changes in the density of artificial light observed at night on a grid of 0.25 degree latitude-longitude pixels. I define drought as greenness estimated by lagged variation in monthly rainfall and temperature. This definition of drought performs well in identifying self-reported drought events since 2000 compared with measures of drought that do not take greenness into account, and the subsequent analysis indicates that predicted variation in greenness is positively associated with year-on-year changes in luminosity: If a unit of observation experiences a predicted variation in greenness that lies 1 standard deviation below the global mean, on average 1.5 - 2.5 light pixels out of 900 are extinguished that year. Finally, an attempt is made to estimate the global cost of drought.
    Keywords: Drought, Greenness, NDVI, Growth, Luminosity, Lights at night, Remote sensing
    JEL: R11 R12 Q54 Q55
    Date: 2014–08
  37. By: Erik Ansink (VU University Amsterdam); Harold Houba (VU University Amsterdam)
    Abstract: We survey the economics of transboundary river water allocation, which emerged in the 1960s and has matured over the last decade due to increasing concerns over water scarcity and pollution. We outline the major approaches and pay specific attention to the strategic aspects of transboundary river water allocation. These strategic aspects are captured by employing game theory to assess the economics of transboundary river water allocation in a simple model of river sharing. This model allows us to show how conflict and cooperation over transboundary water resources may occur. It also allows us to pay specific attention to the efficiency, sustainability, and fairness of solutions to this model. We compare and contrast both cooperative and non-cooperative approaches and we relate their solutions to illustrative examples.
    Keywords: River sharing problem, River claims problem, Fairness, Efficiency, Sustainability, Water allocation agreement, Bargaining, Water trade, Sharing rules, Axiomatic approach
    JEL: C71 C73 D63 D74 F53 Q25
    Date: 2014–10–06
  38. By: Wouter Zant (VU University Amsterdam)
    Abstract: We exploit plot data from the agricultural module of the third Malawi Integrated Household Survey (IHS-3) to investigate how organic cultivation techniques contribute to productivity of non-subsidized local maize and what to expect from using organic inputs on a larger scale. We approximate organic inputs with crop combinations and livestock, and use matching techniques for estimating impacts. Productivity of local maize–bean, local maize–groundnut and local maize–nkhwana, each combined with livestock and chemical fertilizer, is shown to be statistically similar to productivity of fertilized maize mono-cropping. Simulations show that large increases in total maize production are potentially feasible under conversion to organic cultivation techniques. Limited availability of labour and livestock are likely constraints.
    Keywords: crop productivity, soil fertility, organic inputs, Green Revolution, Malawi, Africa
    JEL: Q12 O13 O55
    Date: 2014–08–25

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