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on Environmental Economics |
| By: | Misani, Nicola; Pogutz, Stefano |
| Abstract: | We examine the roles of the outcome and process dimensions of environmental performance in determining financial performance as measured by Tobin’s q. Outcomes refer to the impacts of the firm on the natural environment, while processes are the firm’s actions to reduce these outcomes. We focus on a specific outcome—carbon emissions—and suggest that it affects Tobin’s q non-linearly. We find that firms achieve the highest financial performance when their carbon performance is neither low nor high, but intermediate. We also find that environmental processes moderate this relationship as they reinforce firms’ financial performance through improved stakeholder management. This mixed picture suggests that firms do not generally internalize the costs of poor carbon performance, but those that stand out in both environmental outcomes and processes achieve net financial benefits. These findings are based on a sample of carbon-intensive firms that disclosed their greenhouse gas (GHG) emissions through the Carbon Disclosure Project from 2007 through 2013. |
| Keywords: | GHG emissions; climate change; environmental management; financial performance; Tobin’s q |
| JEL: | C21 L20 M13 Q20 |
| Date: | 2014–11–21 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:60359&r=env |
| By: | Touria Abdelkader B. Conde; Fernando Barreiro-Pereira |
| Abstract: | The main aim of this paper is to observe the environmental behaviour in some cities of the word, by analyzing for each city the trends of several energy and emissions indicators that appear as explanatory variables in both energy and labour average productivity equations. At the same time we also consider the life expectancy at birth as an endogenous variable which be partially explained by these indicators to for observing the carbon dioxide (CO2) effects on the population health. To quantify how affect changes in carbon dioxide emissions, energy production and consumption on the some countries life expectancy, climate change, and labour and energy productivities, we used panel data techniques across some metropolitan areas with IEA annual data. Following the results concerning to the proposed indicators, the energy consumption per inhabitant and CO2 emissions by Km2 are highest around the oil producer countries like Qatar, Emirates and Kuwait, and among the High-Tech user countries like China, Japan, South Korea and Singapore. The more high energy productivity is in Japan, Singapore and Turkey. Only carbon dioxide emissions are addressed in this paper, but it does not address other emmissions such as NOx or SOx. In other hand, we assume by simplicity perfect competition in the good markets to can calculate an energy price indicator for the renewable and non-renewable energies in each city. The paper relates issues to central questions of international politics and theoretical debates concerning to the levels of consumption per head, carbon dioxide emissions/surface and the role of the renewable energies on the climate change and the wellbeing of the consumers. We classify the cities in Oil producers, Coal producers, High-Tech users, and Poor cities. Assumming perfect rationality in the energy producers, we can calculate the costs for change the use of fossil energies by renewable energies. |
| Keywords: | Emissions; Renewable Energy; Cities; Economic Conflicts; Political Conflicts. Class: |
| JEL: | Q01 Q42 Q47 Q53 |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa14p1630&r=env |
| By: | International Finance Corporation; World Bank |
| Keywords: | Environment - Climate Change Mitigation and Green House Gases Macroeconomics and Economic Growth - Climate Change Economics Energy - Energy Production and Transportation Energy - Energy and Environment Environment - Environment and Energy Efficiency |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:20675&r=env |
| By: | Any Wahyuni; Yuzuru Miyata |
| Abstract: | Environmental Economic Efficiency for the Road Construction in Indonesia: An Analytic Hierarchy Process ANY WAHYUNI Graduate School of Environment and Life Science Engineering, Toyohashi University of Technology YUZURU MIYATA, Hiroyuki Shibusawa Graduate School of Architecture and Civil Engineering, Toyohashi University of Technology In an environmental management, there is some uncertainty over the effects of actions on the environment, and of the impact on humans of subsequent environmental changes. The extent of this uncertainty is considerable. Conflicts often arise when should establish measures to fight the climate change to achieve certain economic goals. Society should take action before such uncertainty is resolved, since the costs of not taking action may well be greater than the costs of preventative or anticipatory action taken now, especially when the absence of action today leads to irreversible undesirable environmental consequences (Taylor, 1991). The methodology proposed enables the construction of a set of efficient policies in terms of economic growth and polluting emissions, at the same time it enlarges the set of policy goals. Maros-Watampone-Indonesia road passes through a critical geometric conservation area where it is a barrier to the development improvement. On the other hand, the Government has a limited budget to choose the best development program; therefore, we made an evaluation of the efficiency of economic resources based on: an analytic hierarchy process for selection of the best construction. Previous studies recommend that three proposed alternative constructions can be used: 1. Elevated Bridge, 2. Cut and Fill, 3. Tunnel system. The Government invited community members to participate in selection the best type of construction that can be applied at their region. By using the Analytic Hierarchy Process (AHP), the results showed that the criteria of benefits (0.300) as a major factor in determining the priority of construction and the second is environmental criteria (0.224). In fact; construction cost (0.081) and maintenance criteria (0.054) had no significant effect. An elevated bridge construction is the most suitable construction to be applied (0.528), followed by cut and fill construction (0.248) and the tunnel system (0.223) respectively. The higher contribution of benefit and environmental criteria are indicated that the community preferences cannot be measured with price system. The construction activity consumes fairly large energy and created CO2 emissions simultaneously. By using ?Life Cycle Assessment' (LCA), we estimate of the CO2 emissions indicates that the elevated bridge construction has the lowest (1.31 TonCO2/km) emissions than the tunnel construction (1.79 TonCO2/km). The decision-making process showed that the public started to pay attention for their quality of life, and the environmental effect caused by their development activity. Keywords: Analytic Hierarchy Process, CO2 Emissions, Economic Environmental Efficiency JEL codes: R, R00, R5 |
| JEL: | R R00 R5 |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa14p1085&r=env |
| By: | Malgorzata Ogonowska (University of Nice Sophia Antipolis, France; GREDEG CNRS); Dominique Torre (University of Nice Sophia Antipolis, France; GREDEG CNRS) |
| Abstract: | Awareness of the environment and the need to protect it has increased markedly in recent decades, and market actors, consumers and other stakeholders have been progressively more aware of ecological issues. Awareness of the pollution caused by mass tourism has resulted in the emergence of the concept of sustainable tourism which encompasses both environmental and societal concerns. This paper reviews work on sustainable tourism, highlighting the main issues which are illustrated by empirical examples in this new research framework. |
| Keywords: | Economics of Tourism, Environmental Economics, Sustainable Tourism, Certification, Vertical Differentiation, Stake-holders, Tourism Externalities |
| JEL: | L83 Q56 |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2014-45&r=env |
| By: | Clive L. Spash; Iulie Aslaksen |
| Abstract: | In this paper we explore the discourses of ecology, environmental economics, new environmental pragmatism and social ecological economics as they relate to the value of ecosystems and biodiversity. Conceptualizing biodiversity and ecosystems as goods and services that can be represented by monetary values in policy processes is an economic discourse being increasingly championed by ecologists and conservation biologists. The latter promote a new environmental pragmatism internationally as hardwiring biodiversity and ecosystems services into finance. The approach adopts a narrow instrumentalism, denies value pluralism and incommensurability, and downplays the role of scientific knowledge. Re-establishing an ecological discourse in biodiversity policy implies a crucial role for biophysical indicators as independent policy targets, exemplified in this paper by the Nature Index for Norway. Yet, there is a recognisable need to go beyond a traditional ecological approach to one recognising the interconnections of social, ecological and economic problems. This requires reviving and relating to a range of alternative ecologically informed discourses, including an ecofeminist perspective, in order to transform the increasingly dominant and destructive relationship of humans separated from and domineering over Nature. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwsre:sre-disc-2014_05&r=env |
| By: | Hallegatte, Stephane; Bangalore, Mook; Bonzanigo, Laura; Fay, Marianne; Narloch, Ulf; Rozenberg, Julie; Vogt-Schilb, Adrien |
| Abstract: | Climate change and climate policies will affect poverty reduction efforts through direct and immediate impacts on the poor and by affecting factors that condition poverty reduction, such as economic growth. This paper explores this relation between climate change and policies and poverty outcomes by examining three questions: the (static) impact on poor people's livelihood and well-being; the impact on the risk for non-poor individuals to fall into poverty; and the impact on the ability of poor people to escape poverty. The paper proposes four channels that determine household consumption and through which households may escape or fall into poverty (prices, assets, productivity, and opportunities). It then discusses whether and how these channels are affected by climate change and climate policies, focusing on the exposure, vulnerability, and ability to adapt of the poor (and those vulnerable to poverty). It reviews the existing literature and offers three major conclusions. First, climate change is likely to represent a major obstacle to a sustained eradication of poverty. Second, climate policies are compatible with poverty reduction provided that (i) poverty concerns are carefully taken into account in their design and (ii) they are accompanied by the appropriate set of social policies. Third, climate change does not modify how poverty policies should be designed, but it creates greater needs and more urgency. The scale issue is explained by the fact that climate will cause more frequent and more severe shocks; the urgency, by the need to exploit the window of opportunity given to us before climate impacts are likely to substantially increase. |
| Keywords: | Rural Poverty Reduction,Safety Nets and Transfers,Regional Economic Development,Climate Change Economics,Climate Change Mitigation and Green House Gases |
| Date: | 2014–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7126&r=env |
| By: | Jahn, Malte |
| Abstract: | Climate change may affect subnational regions in very different ways. In this paper, a spatial computable general equilibrium (SCGE) model is constructed and a theoretical framework is developed to study impacts of climate change induced extreme weather events and of corresponding adaptation policies on a regional economy, focusing on water-related extreme events. The model makes use of regionalized input-output tables to represent the regional economy and takes into account different zones inside the region which have different socio-economic structures and also different levels of exposure to extreme weather. The model is used to estimate possible spatial effects and regional economic losses of climate change induced ood events in the city of Hamburg, Germany and to evaluate flood adaptation measures. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:hwwirp:154&r=env |
| By: | Ahlheim, Michael; Frör, Oliver; Langenberger, Gerhard; Pelz, Sonna |
| Abstract: | Based on a Contingent Valuation study in Shanghai we assess people's willingness to contribute personally to the alleviation of environmental problems occurring in distant parts of the country. One split of our survey assessed Shanghai residents' willingness to pay for the preservation of rainforest in Yunnan, while the other split referred to the willingness to pay for the preservation of a single plant species (i.e. eaglewood) growing in this rainforest. The objectives of this study were twofold. Firstly, we wanted to find out if people living in big Chinese cities like Shanghai take an interest in the environmental problems existing in some remote parts of the country and if they are willing to contribute personally to remedy these problems. Secondly, we wanted to learn more about the motivation behind this kind of empathy, if it exists. We were especially interested in the question if this empathy refers to the specific environmental problems we addressed in our surveys or if it is motivated more by a general feeling of obligation towards environmental issues. |
| Keywords: | Eaglewood,rubber cultivation,biodiversity preservation,contingent valuation,ecosystem services,China |
| JEL: | D61 Q51 Q57 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fziddp:942014&r=env |
| By: | Tomasz Koźluk |
| Abstract: | Environmental policies seek to address market failures related to the protection of the environment. However, they may also increase barriers to entry and distort competition. If stringent environmental policies can be designed in a way that minimises such economic burdens, they can facilitate the achievement of economic and environmental goals and a cleaner growth model. This paper reports evidence on selected competition-relevant aspects of environmental policy design from a cross-country questionnaire. Information on administrative burdens related to environmental licenses, differential treatment among incumbents and new entrants and the procedures to evaluate economic effects of environmental policies are summarised in a set of indicators of the Burden on the Economy due to Environmental Policies (BEEP). The indicators allow for a set of tentative conclusions. Firstly, the BEEP captures information on anti-competitive regulations absent from the OECD’s product market regulation indicators (PMR). Secondly, though it is not yet possible to evaluate the economic impact of anti-competitive aspects of environmental policies, it is likely they impact well beyond the sectors directly concerned, hampering productivity growth, as shown for other product market regulations. Finally, the burdens of environmental policies are not related to their actual stringency, indicating that ambitious environmental targets can be pursued in ways that are more (or less) friendly to competition.<P>Les indicateurs des charges économiques inhérentes à la conception des politiques environnementales : Résultats du questionnaire de l'OCDE<BR>Les politiques environnementales s’efforcent de remédier aux défaillances du marché en matière de protection de l’environnement. Il se peut cependant qu’elles renforcent aussi les obstacles à l’entrée et faussent la concurrence. Si des politiques environnementales strictes peuvent être conçues de telle façon que ces charges économiques soient réduites au minimum, elles pourront faciliter la réalisation des objectifs économiques et environnementaux et l’avènement d’un modèle de croissance plus propre. Ce document présente des données tirées d’un questionnaire transnational concernant certains aspects de la conception des politiques environnementales en rapport avec la concurrence. Les informations ayant trait aux charges administratives associées aux systèmes de licences environnementales, au traitement différentiel des acteurs en place et des nouveaux entrants, ainsi qu’aux procédures suivies pour évaluer l’impact économique des politiques d’environnement sont résumées dans un ensemble d’indicateurs BEEP (Burden on the Economy due to Environmental Policies). L’examen de ces indicateurs permet de tirer une série de conclusions préliminaires. Premièrement, malgré la montée des préoccupations concernant les aspects anticoncurrentiels de la réglementation des marchés de produits, les problèmes analogues associés aux politiques environnementales n’ont pas retenu la même attention. Deuxièmement, les données disponibles sur la réglementation des marchés de produits en général montrent que les gains procurés par les réglementations respectueuses de la concurrence sont importants, et qu’il en est probablement de même pour les politiques environnementales. Enfin, il n’y a pas de lien entre les charges associées aux politiques de l’environnement et le degré de rigueur de ces politiques, de sorte qu’il est possible de poursuivre d’ambitieux objectifs environnementaux de façon plus (ou moins) favorable à la concurrence. |
| Keywords: | administrative burdens, competition, environmental regulations, environmental policies, barriers to entry, politiques environnementales, réglementation environnementale, charges administratives, obstacles à l'entrée, concurrence |
| JEL: | L50 L59 Q58 |
| Date: | 2014–12–04 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1178-en&r=env |
| By: | Tatyana Deryugina; Solomon M. Hsiang |
| Abstract: | It is widely hypothesized that incomes in wealthy countries are insulated from environmental conditions because individuals have the resources needed to adapt to their environment. We test this idea in the wealthiest economy in human history. Using within-county variation in weather, we estimate the effect of daily temperature on annual income in United States counties over a 40-year period. We find that this single environmental parameter continues to play a large role in overall economic performance: productivity of individual days declines roughly 1.7% for each 1°C (1.8°F) increase in daily average temperature above 15°C (59°F). A weekday above 30°C (86°F) costs an average county $20 per person. Hot weekends have little effect. These estimates are net of many forms of adaptation, such as factor reallocation, defensive investments, transfers, and price changes. Because the effect of temperature has not changed since 1969, we infer that recent uptake or innovation in adaptation measures have been limited. The non-linearity of the effect on different components of income suggest that temperature matters because it reduces the productivity of the economy's basic elements, such as workers and crops. If counties could choose daily temperatures to maximize output, rather than accepting their geographically- determined endowment, we estimate that annual income growth would rise by 1.7 percentage points. Applying our estimates to a distribution of "business as usual" climate change projections indicates that warmer daily temperatures will lower annual growth by 0.06-0.16 percentage points in the United States unless populations engage in new forms of adaptation. |
| JEL: | N52 O1 O4 Q51 Q54 R11 |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20750&r=env |
| By: | Prakash K. Karn |
| Abstract: | This paper examines the sensitivity of rice yield in Nepal to changes in climate variables and the magnitude of potential impacts on rice productivity in the future. Our findings draw attention to the differential impacts on rice yield depending on which stage of rice development is affected. We estimate that a 1°C rise in day-time maximum temperature during the ripening phase of rice increases harvest by 27 kg. Ha-1, but our analyses also suggests that productivity declines when the daytime maximum temperature goes beyond 29.9°C. Since the average maximum temperature is already higher than this threshold, rice yield will likely diminish with any further increases in maximum temperature. Rainfall appears to have a strong negative effect on yield if it occurs when rice plants are in the nursery stage. Overall, under a double CO2 scenario predicted for 2100, rice yield in Nepal is expected to drop by about 4.2 per cent relative to current production levels. However, this prediction is does not account for any long-term positive effects from adaptation and carbon fertilization or negative effects from extreme events triggered by climate change. |
| Keywords: | Climate change, productivity changes, agricultural impact, rice yields, Nepal. |
| URL: | http://d.repec.org/n?u=RePEc:snd:wpaper:85&r=env |
| By: | Ali, Bouchrika; FakhriI, Issaoui; Habib, Jouber |
| Abstract: | The aim of this paper is to introduce the Contingent valuation Method (CVM) as an efficient method allowing to modify the utility level, of an economic agent to following the consumption of environmental goods. In the absence of the market for natural assets, the CVM allows us to create a hypothetical market to evaluate the economic value of those assets by purchase and sale transactions. However, this valuation can be constrained with the quality problem of the physical nature of those environmental assets. The theoretical framework had shown that a change in the utility function and consumer surplus on the one hand, price and profit of the monopoly on the other hand, is be needed to keep the measures of economic efficiency and social equity. |
| Keywords: | CVM, Environmental assets, utility function, willingness to pay (WTP) |
| JEL: | Q51 Q58 |
| Date: | 2014–12–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:60421&r=env |
| By: | Rezai, Armon; van der Ploeg, Frederick |
| Abstract: | We use the Euler equation to put forward a back-on-the-envelope rule for the global carbon tax based on a two-box carbon cycle with temperature lag, and a constant elasticity of marginal damages with respect to GDP. This tax falls with time impatience and intergenerational inequality aversion and rises with population growth and prudence. It also falls with growth in living standards if inequality aversion is large enough or marginal damages do not react much to GDP. It rises in proportion with GDP if marginal climate damages are proportional to output and has a flat time profile if they are additive. The rule also allows for mean reversion in climate damages. The rule closely approximates the true optimum for our IAM of Ramsey growth, scarce fossil fuel, energy transitions and stranded assets despite it using the more complicated DICE carbon cycle and temperature modules. The simple rule gets close to the social optimum even if damages are much more convex than in DICE. |
| Keywords: | climate damage specification; intergenerational inequality aversion; optimal energy transitions; Ramsey growth; SCC; simple rule; stranded assets |
| JEL: | H21 Q51 Q54 |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:10292&r=env |
| By: | Andrej Steiner; Rudolf Bauer; Jana Knezova |
| Abstract: | Climate change is happening, projected to continue and poses serious challenges also for cities' development. Extreme weather events resulting in hazards such as heat waves, floods and droughts are expected to happen more frequently in many parts of Europe. The United Nations Intergovernmental Panel on Climate Change (IPCC) predicts global temperatures to rise an additional 2-4˚C by the end of this century and graduation of weather extremes. While urban areas will generally experience the same exposures to climate change as surrounding regions, the urban setting can alter these local impacts. The replacement of natural vegetation with artificial surfaces and buildings creates unique microclimates altering temperature, moisture, wind direction and rainfall patterns. Moreover cities forms difficult dynamic systems with high density of people, hub of services and infrastructure so the climate change impacts have and will have potentially serious consequences for human health, livelihoods, and assets and ultimately influence the development of the entire city and its surroundings. However, many city managements are still inactive in this field. It is caused mainly by lack of information, low awareness and knowledge and absence of positive good examples. On the other hand an increasing number of cities around the world have begun to plan for climate change by developing stand-alone climate plans or incorporating climate considerations into existing plans, policies, and projects to become more resilient towards existing and future climate impacts, thereby limiting their magnitude and severity. City of Kosice, Slovakia namely, its largest city district West in cooperation with the research institution Carpathian Development Institute had implemented (as one of the first in Slovakia) the process of climate change adaptation in order to be better prepared and adjust proactively for the heat waves as the critical climate change impact on the city borough residents. The adaptation strategy is built on the principle "low cost quick win" based on assumption that increasing resilience requires not only robust decision making and big investments, but also a strong web of institutional and social relationships that can provide a safety net for vulnerable populations. Through both formal planning activities and concrete measures preparations, city is building their capacity to adapt effectively to existing and future climate impacts, while also experimenting and innovating in policy making and planning. The paper highlights key lessons learned from planning and implementing climate adaptation process as a part of innovative and integrated city development policy. |
| Keywords: | climate change adaptation; city management; planning and policy making |
| JEL: | Q58 Q59 |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa14p442&r=env |
| By: | Debabrata Chattopadhyay; Rahul Kitchlu; Rhonda L. Jordan |
| Keywords: | Environment - Climate Change Mitigation and Green House Gases Energy - Energy and Environment Science and Technology Development - Engineering Energy - Energy Production and Transportation Environment - Environment and Energy Efficiency |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:20596&r=env |
| By: | Lucia Lavric (Department of Economics, Duke University); Nick Hanley (School of Geography and Sustainable Development, University of St. Andrews) |
| Abstract: | Energy costs are partly driven by environmental policy choices. In this paper, the effects of variations in energy costs – as measured by end-user electricity prices – on firm relocation decisions are investigated. Using a discrete choice model a nd a data base which has not previously been exploited to study this problem, we investigate the effects of variations in energy costs both for a sub-set of re-locating European firms in terms of which country they move to; and then for a larger set of firms in terms of the decision to re-locate or not in response to higher energy prices. We find that energy costs play a significant role in determining relocation destinations, and that this effect is asymmetric between firms moving into and out of a country , and between high energy intensity and low energy intensity sectors. The findings of the paper have implications for the Pollution Havens Hypothesis, since they show the extent to which the effects of climate policy on domestic energy costs can be expected to impact on firm relocation decisions both into and out of a country. |
| Keywords: | firm re-location, energy costs, Pollution Havens Hypothesis, climate policy, carbonleakage |
| JEL: | D22 F18 Q41 Q52 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:sss:wpaper:2014-02&r=env |
| By: | Tatiane Menezes; Paula Pereda; Denisard Alves |
| Abstract: | Climate has relevant impacts on human health. According to the World Health Organization (WHO), climate-sensitive health problems kill millions of people every year and undermine the physical and psychological health of millions (WHO, 2012). In the particular case of vector-borne diseases, climate conditions assure the vectors' survival and reproduction and, consequently, the transmission of the diseases (Kelly-Hope and Thomson, 2008). Increases in heat, precipitation, and humidity can allow insects to move from regions where infectious diseases thrive into new places. The vector-borne disease analyzed by this study is the dengue fever. Dengue fever is the key target infectious disease in Latin America, whose incidence depends highly on climate conditions due to the mosquitos. In this sense, this study intends to identify the climate impact on dengue in the country in order to measure the impact of climate change on the dengue risk in Brazil, and also examine the public policy's role on minimizing those effects in the country. The government influence, in terms of public policy, is mainly given by the universalization of running water and sewage collection (both urban infrastructure problems controlled by the municipal government), by the type of housing, educational measures, and by assuring the health assistance of the people affected by such diseases (availability of hospital beds, health expenditures). Pereda (2012) found out that integrated actions from local governments are needed to control the spread of the disease. In order to identify the climate impacts on dengue risk, a comparative case study research will be used, based on the comparison of cities that suffered from specific climate conditions that increased the risk of dengue with cities whose climatic conditions stayed the same. The counterfactual will be created based on the synthetic controls approach, which generates control groups as a combination of units not exposed to the intervention (Abadie and Gardeazabal, 2003; and extended by Abadie et al, 2010). Thus, the synthetic control is a weighted average of the available control units that sum to one. As Brazil is a wide country, and exposed to many climate patterns, there are many possibilities of gathering good control groups by using this methodology. The preliminary results suggest that the increase in temperature in temperate regions (South of the country) increase the incidence of dengue in the region. On the other hand, the increase in temperature in the tropical areas (North of the country) could diminish the disease. Therefore, due to the expected increase of temperatures in the future, the climate change might change the dengue fever distribution in the country. The study also intends to examine the public policy's role on minimizing those effects in the country, mainly focused on water supply and sanitation. |
| Keywords: | Health (I130); Global Warming (Q540); Applications (C0010); Environment (R110) |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa14p494&r=env |
| By: | VARDAR, N. Baris (Paris School of Economics, France; Université catholique de Louvain, CORE & Chair Lhoist Berghmans in Environmental Economics and Management, Belgium) |
| Abstract: | This paper investigates the optimal taxation path of a non-renewable resource in the presence of an imperfect substitute renewable resource. We present an optimal growth model and characterize the social optimum and the decentralized equilibrium. We show that the economy gradually reduces the share of non-renewable resource and converges to a steady state in which it uses only the renewable resource. The decentralized economy converges to the same steady state as the social optimum in terms of capital stock and consumption whether there is a regulator intervention or not. What matters for welfare, however, is the speed at which the economy approaches the clean state - the energy transition, which determines the level of environmental damages. We obtain the optimal taxation rule and show that its time profile can be either always increasing, decreasing or U-shaped depending on the initial state of the economy. Finally we provide some simulation results to illustrate these theoretical findings. |
| Keywords: | energy, optimal taxation, non-renewable resource, renewable resource, imperfect substitution, simultaneous resource use |
| JEL: | Q43 Q38 Q30 Q20 |
| Date: | 2014–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:cor:louvco:2014021&r=env |
| By: | Jørgen Juel Andersen; Mads Greaker |
| Abstract: | The theoretical justiÖcation for a greenhouse gas (GHG) cap and trade system is that participants will trade emission permits until their marginal cost of abatement equals the equilibrium price of emission permits. However, for Öscally constrained governments this logic does not apply, as they have a Öscal incentive to let welfare concerns, rather than industrial cost effciency, guide their abatement policy. Then, global cost e¢ ciency will fail even if just a (small) subset of governments are Öscally constrained. Finally, we argue that any institutional change which breaks the connection between a governmentís abatement policy and its budget will increase welfare. |
| Keywords: | environmental policy, fiscal icentive, fiscal constraints, GHG cap and trade, welfare |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:bny:wpaper:0027&r=env |
| By: | Ummel, Kevin; Fant, Charles |
| Abstract: | South Africa hopes to expand wind and solar power. Success depends on how and where to deploy the technologies. This study develops a 10-year database of expected power generation for these technologies across South Africa. A power system model simulates |
| Keywords: | abatement cost, greenhouse gas emissions, low-carbon development, optimization, renewable energy, spatiotemporal modelling |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2014-121&r=env |
| By: | Ruiqing Miao; Hongli Feng; David A. Hennessy (Center for Agricultural and Rural Development (CARD)); Xiaodong Du |
| Abstract: | Strong demand for agricultural commodities, high crop prices and pressure to reduce government budget deficits heighten the need for land retirement programs to be designed to maximize environmental benefits for any given budget outlay. The Conservation Reserve Program (CRP) is the largest land retirement program while the federal crop insurance program (FCIP) is the largest federal program supporting U.S. agriculture. We examine the environmental and budgetary implications of alternative CRP enrollment mechanisms in the context of the program’s interactions with FCIP. We demonstrate that the current CRP enrollment mechanism is inconsistent with cost-effective targeting. We also identify a cost-effective targeting enrollment mechanism that maximizes total environmental benefits under a budget constraint. Since federal crop insurance subsidies will not be incurred when a tract of land is retired from agricultural production, we consider the impacts when avoided subsidies are accounted for in designing a land-retirement program. Based on contract-level CRP offer data in 2003 and 2011 across the contiguous United States, we find that adopting the cost-effective targeting enrollment mechanism can increase CRP acreage by up to 45% and total environmental benefits by up to 21% while leaving government outlay unchanged. Incorporating crop insurance subsidies into the land retirement design can increase avoided subsidies caused by CRP enrollment and environmental benefits obtained from CRP. The government can enroll significant acres at zero real cost. Under cost-effective targeting, CRP acreage and payments would increase in the Great Plains and the Southeastern states but would decrease in the Midwest. |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:ias:cpaper:14-wp553&r=env |
| By: | Mikolaj Czajkowski (Faculty of Economic Sciences, University of Warsaw, Poland); Nick Hanley (School of Geography and Sustainable Development, University of St. Andrews); Jacob LaRiviere (Department of Economics, University of Tennessee) |
| Abstract: | This paper develops a choice model for environmental public goods which allows for consumers to learn about their preferences through consumption experiences. We develop a theoretical model of Bayesian updating, perform comparative statics over the model, and show how the theoretical model can be consistently incorporated into a reduced form econometric model. Our main findings are that in a Random Utility Model (RUM) discrete choice model, a subject’s scale should increase and the variability of scale should decrease with experience if subjects are Bayesians. We then estimate the model using field data regarding preferences for one particular public good, water quality. We find strong evidence that additional experience increases scale, thereby makes consumer preferences more predictable from the econometrician’s perspective. We find supportive but less convincing evidence that experience decreases the variability of scale across subjects. |
| Keywords: | Bayesian updating,choice experiment,learning,scale, scale variance |
| JEL: | C51 D83 Q51 H43 |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:sss:wpaper:2014-05&r=env |
| By: | Ouraich, Ismail; Dudu, Hasan; Tyner, Wallace E.; Cakmak, Erol |
| Abstract: | This paper examines the interaction of globalization through trade liberalization and climate change, globally with a special focus on Morocco and Turkey. We use the GTAP model, which is a global general equilibrium model, to investigate trade liberalizat |
| Keywords: | climate change, adaptation, uncertainty, CGE model, trade liberalization |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2014-100&r=env |
| By: | Peter Arbo; Thuy Pham Thi Thanh |
| Abstract: | The missing link in marine ecosystem-based management Peter Arbo, University of Tromsø ? The Arctic University of Norway Phạm Thị Thanh Thủy, University of Nha Trang The Arctic region is receiving growing attention. There is increasing interest in exploiting the natural resources and the new sea routes that open as the sea ice is retreating and new technology and infrastructure make the Arctic Ocean more accessible. However, the environmental impacts of a melting Arctic and the consequences of increasing human activity also arouse serious concern. From many quarters, the need for a sustainable ecosystem-based management of the Arctic Ocean is therefore stressed. This paper takes a closer look at the shortcomings of the ecosystem approach. Environmental governance of the Arctic Ocean is not only facing the challenges of creating a common framework across highly different coastal states. The ecosystem approach itself has limitations that need to be addressed. Our contention is that so far the main focus has been on the natural ecosystems while the regulation of industrial activities, which is a prerequisite for balancing ocean uses with the maintenance of ecosystem integrity, has largely been ignored. The paper thus starts with a discussion of what we have called the missing link in ecosystem-based management. We point out that the attempts to establish this new governance framework primarily have been about identifying valuable and vulnerable habitats and species, assessing the cumulative impacts of human activity, and setting up monitoring systems for measuring the health of the ecosystems. The more complicated issues of how to regulate and coordinate expanding industrial activities have received more scant attention. After this, we analyze some of the challenges associated with including the patterns of human activity, regulating industries, and dealing with user conflicts. This is done by a comparative study of the relationship between the offshore oil and gas industry and the seafood industry in Norway and Vietnam. In the case study, we highlight, among other things, the importance of power asymmetries, transparency, differences in the level of development, and mechanisms for institutional coordination. The paper concludes with a discussion of lessons to be learned for integrated marine governance. Keywords: Ecosystem-based management - the Arctic Ocean - regulation of industrial activity ? oil versus fisheries. JEL codes: Z13, Z18. |
| Keywords: | Ecosystem-based management; the Arctic Ocean; regulation of industrial acitivity; oil versus fisheries. |
| JEL: | Z13 Z18 |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa14p248&r=env |
| By: | Kazunori Nakajima; Hisayoshi Morisugi; Masafumi Morisugi; Naoki Sakamoto |
| Abstract: | To explain economic impacts of flood damage due to climate change over time in Japan, this study develops a dynamic spatial computable general equilibrium model, and measures flood damage costs through some numerical experiments. It is inferred that the frequency and the intensity of flood are on the long-term increase. In the category of flood damage in Japan, there are serious flood damages to social capitals. These observations are described in statistical research on flood by Japanese government. In this study, these damages are defined as Âgthe direct damageÂh, and are different from decrease in equivalent consumption due to the direct effect. Also, the proportion of the direct damage to decrease in equivalent consumption is defined as Âgthe dynamic multiplier of damage costÂh. This study develops a spatial CGE model based on dynamic structure of the Ramsey model. Our model has 8 regions and 20 production sectors. The flood scenario is described as increase in capital depreciation rate due to flood from 2000 to 2050. In our simulations, 5 flood damage rates are used consisting of damage rates calculating by 4 climate models and uniform damage rate throughout Japan. To consider dynamic spillover effects of flood damage, this study proposes two indices as dynamic damage costs that are comparative static and transition dynamics. The former is the long-term damage caused as the result of shifts from a steady-state equilibrium to another by increasing in the frequency and the intensity of flood due to climate change. On the other hand, the latter is the difference between flood damage costs by a baseline scenario and by a flood scenario, on the transition path to a new steady-state equilibrium. As the transition path can be described, this study shows possible dynamic spillover effects of flood damage over time. The findings in this study are shown below. 1)In 2050, the total amount of flood damage cost is estimated to be from about US$0.4 billion to about US$5.6 billion. 2)The decrease in the rate of investment return by the long-term increase in flood damage causes decrease in savings and consumption, so that the dynamic multiplier of damage cost is estimated to be from 1.2 to 1.7 times. |
| Keywords: | Computable General Equilibrium Models; Project Evaluation; Natural Disasters; Global Warming; |
| JEL: | C68 H43 Q54 |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa14p673&r=env |
| By: | Christian A. L. Hilber; Charles Palmer |
| Abstract: | We exploit a unique panel of 75 metro areas ('cities') across the globe and employ a city-fixed effects model to identify the determinants of within-city changes in air pollution concentration between 2005 and 2011. Increasing car and population densities significantly reduce air pollution concentration in city centers where air pollution induced health risks are greatest. These effects are largely confined to cities in non-OECD countries. Two possible mechanisms for the negative effect of car density are explored: (i) increasing car density permits a decentralization of residential and economic activity; and (ii) car usage substitutes for motorbike usage. We find limited evidence in favour of (i) and no evidence in favour of (ii). We also observe a complex relationship between income and pollution concentration as well as a general downward-trend in pollution concentration over time. Overall, our findings are indicative that densely populated polycentric cities may be 'greener' and 'healthier' than comparable monocentric ones. |
| Keywords: | Urbanization, urban form, decentralization, air pollution, transport, built environment |
| JEL: | Q01 Q53 R11 R41 |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0169&r=env |
| By: | Johannes Schmidt (Institute for Sustainable Economic Development, Department of Economics and Social Sciences, University of Natural Resources and Applied Life Sciences, Vienna. Programa de Planejamento Energético / Universidade Federal de Rio de Janeiro); Rafael Cancella (Programa de Planejamento Energético / Universidade Federal de Rio de Janeiro); Amaro Olímpio Pereira Junior (Programa de Planejamento Energético / Universidade Federal de Rio de Janeiro) |
| Abstract: | A high share of Brazilian power production comes from hydropower sources. A further expansion of power generation is necessary due to high growth rates in electricity demand. As an alternative to carbon intensive thermal power production and the expansion of hydropower in the ecologically and socially sensitive North of Brazil, windpower production could help to cover increasing levels of demand. Variability of wind is however often considered a major obstacle for further expansion. We assess the variability of potential windpower production in the four most important windpower producing states Ceará (CE), Rio Grande do Norte (RN), Bahia (BA) and Rio Grande do Sul (RS). Instead of focusing on hourly or sub-hourly variability, we assess the seasonality and inter-annual variability. This is important as hydropower production shows strong seasonality in Brazil and as inter-annual variation of hydropower production is high. We generate and validate time series of windpower production from wind speeds derived from measurements and two global climate models (NCAR reanalysis and ECMWF reanalysis). Our results show that seasonal variability of windpower generation in the North-Eastern states is anticyclical to hydrological seasonality in the South-East, North-East, and North of Brazil. Inter-annual variability is lower for windpower production than for hydro inflows. No consistent inter-annual relationship between the two sources of renewable energy can be found with the exemption of the state of Ceará which shows low positive correlation with hydro inflows. This indicates that although integrating windpower into the system may cause electrical problems due to very short term variability, seasonal and inter-annual variability is considerably decreased if windpower expansion is favoured instead of hydropower. Our results also show that ECMWF data may be the best source of long-term wind timeseries as it is better able to reproduce ground measurements than NCAR. |
| Keywords: | Windpower, Brazil, Seasonality, Inter-annual variability |
| JEL: | Q42 |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:sed:wpaper:562014&r=env |
| By: | Maria Larkova |
| Abstract: | Understanding that the environment is more than the resource base of human economic activities was a watershed in the awareness of the real value of the environment and the need for an assessment of its quality. The complex of benefits from ecosystems that people obtain in the literature became referred as ecosystem services. Ecosystem services are seen as an intermediate link between the processes and phenomena in the environment and human well-being. The main groups of the ecosystem services are providing services (products which obtained from ecosystems), regulating services (benefits which obtained from the regulation of ecosystem processes), cultural services (intangible benefits that people obtain from ecosystems) and supporting services (necessary for the production of all other types of services). As practice shows ecosystem services are generally recognized, but at the same time, are undervalued by mankind. The ecosystems of the planet are stressed by human economic activities. Population growth, rising living standards entail that ecosystems do not have time to replicate itself. Inability of ecosystems to remediate in deadlines undermines their basic functions for reproduction of natural resource potential and regulation of processes in the atmosphere, hydrosphere, and biosphere. The exertion in ecosystems increases but their abilities due to degradation reduce. To evaluate the potential of the territory from the perspective of ensuring maximum flow of ecosystem services is possible only considering areas that are not affected by human activities. In densely populated areas such possibility can provide the Protected Areas (PAs). Valuation of ecosystem services of PAs can be a solution to the problem of sustainable economic development at both the regional and global levels. For any ecosystem service a set of methods is developed. The main approaches use direct and indirect market value, as well as the principle of 'willingness to pay' (or 'willingness to accept compensation'). The paper uses the concept of total economic value, which synthesizes all approaches mentioned above. Key area of research is the territory of Pasvik Nature Reserve, located in the northwest of the Kola Peninsula. On the basis of the concept of total economic value the most valuable components and landscape features are determined; the latent possibilities of economic development district are revealed (GRP growth, an increase in employment income, an increase in tax liabilities). In spatial planning (or choice one of several alternative types of economic activity) the value equivalent of unspoiled nature should be taken into consideration. |
| Keywords: | ecosystem services; protected areas; Valuation of ecosystem services; principle of 'willingness to pay'; Pasvik Nature Reserve |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa14p1548&r=env |
| By: | Rainald Borck |
| Abstract: | This paper studies the effectiveness of building height limits as a policy to limit greenhouse gas (GHG) emissions. It shows that building height limits lead to urban sprawl and higher emissions from commuting. On the other hand, aggregate housing consumption may decrease which reduces emissions from residential energy use. The paper uses numerical simulation to show that total GHG emissions may be lower under building height restrictions. It also studies the effect of endogenous transport technology and the urban heat island effect. |
| Keywords: | greenhouse gas emissions; city structure; building height limits; |
| JEL: | Q5 R1 |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa14p1342&r=env |
| By: | Antoine Bommier; Lucas Bretschger; Francois Le Grant |
| Abstract: | The paper proves the existence of equilibrium in nonrenewable resource markets when extraction costs are non-convex and resource storage is possible.Inventories atten 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 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:146&r=env |
| By: | Damien Sans (Aix-Marseille University (Aix-Marseille School of Economics), CNRS, & EHESS); Sonia Schwartz (CERDI, Université d’Auvergne); Hubert Stahn (Aix-Marseille University (Aix-Marseille School of Economics), CNRS, & EHESS) |
| Abstract: | In this article we introduce a polluting eco-industry. Depending on the level of the damage, we find one of two optimal equilibria. If the damage is low, we generalize the usual results of the economic literature to the polluting eco-industry: the dirty firm partially abates their emissions, only efficient eco-industry firms produce and the abatement level increases with the damage. However, we obtain very specific results if the damage is high. In this case, not all efficient eco-industry firms produce. The abatement level and the number of active eco-industry firms both decrease as the damage increases. We finally show that a well-designed Pigouvian tax implements these equilibria in a competitive economy. |
| Keywords: | Polluting Eco-Industry, Heterogeneous Örms, Welfare Analysis, Pigouvian Tax |
| JEL: | D62 Q58 L11 |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:aim:wpaimx:1453&r=env |
| By: | Akpalu, Wisdom; Bezabih, Mintewab |
| Abstract: | Land tenure arrangements in Africa are generally skewed in favour of males. Compared to males, female plot owners face complex sets of constraints and systemic high tenure insecurity which culminate in low yields. In order to obtain better returns, some f |
| Keywords: | climate variability, female-headed households, productivity, tenure insecurity |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2014-140&r=env |
| By: | Stefan Seifert; Astrid Cullmann; Christian von Hirschhausen |
| Abstract: | In this paper, we analyze the technical efficiency of CO2 reduction potentials of German power and heat plants, using a non-parametric sequential Data Envelopment Analysis. We apply a metafrontier framework to evaluate plant-level efficiencies in the transformation of inputs into desirable (energy) and undesirable (CO2 emissions) outputs, taking into account different fossil fuel generation technologies. We dispose of a unique data set for coal-, lignite-, gas- and biomass-fired power plants from 2003 through 2010 that provides an unbalanced panel of 1459 observations. We find intra-group differences within energy generation technology, but natural gas fired power plants clearly have the highest efficiency. Furthermore, the analysis points to significant savings potentials for CO2 and fuel-input. |
| Keywords: | Electricity generation, non-parametric efficiency analysis, Germany, Panel 2003-1010 |
| JEL: | L94 Q50 C14 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1426&r=env |
| By: | Giglio, Stefano W; Maggiori, Matteo; Ströbel, Johannes |
| Abstract: | We provide direct estimates of how agents trade off immediate costs and uncertain future benefits that occur in the very long run, 100 or more years away. We exploit a unique feature of housing markets in the U.K. and Singapore, where residential property ownership takes the form of either leaseholds or freeholds. Leaseholds are temporary, pre-paid, and tradable ownership contracts with maturities between 99 and 999 years, while freeholds are perpetual ownership contracts. The difference between leasehold and freehold prices reflects the present value of perpetual rental income starting at leasehold expiry, and is thus informative about very long-run discount rates. We estimate the price discounts for varying leasehold maturities compared to freeholds and extremely long-run leaseholds via hedonic regressions using proprietary datasets of the universe of transactions in each country. Agents discount very long-run cash flows at low rates, assigning high present values to cash flows hundreds of years in the future. For example, 100-year leaseholds are valued at more than 10% less than otherwise identical freeholds, implying discount rates below 2.6% for 100-year claims. Given the riskiness of rents, this suggests that both long-run risk-free discount rates and long-run risk premia are low. We show how the estimated very long-run discount rates are informative for climate change policy. |
| Keywords: | Asset Pricing; Climate Change; Cost-Benefit Analysis; Environmental Economics; Housing Risk and Return.; Real Estate |
| JEL: | G11 G12 R30 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:9978&r=env |
| By: | Marielle Brunette (Laboratoire d'Economie Forestière, INRA - AgroParisTech); Stéphane Couture (Unité de mathématiques et informatique appliquées de Toulouse, INRA); Serge Garcia (Laboratoire d'Economie Forestière, INRA - AgroParisTech) |
| Abstract: | In this article, we estimate the demand of French private forest owners for forest insurance against fire risk. For this purpose, we combine experimental data and real-world data on forest owners’ characteristics. Our econometric approach consists in estimating both insurance participation and coverage-level decisions, while accounting for sample selection issues. Our results clearly show that the type of public assistance is a significant determinant in the insurance decision. Other attributes of the experiment such as the expected loss only explain coverage-level decisions, whereas the existence of an ambiguity concerning the probability of fire occurrence positively affects both insurance participation and coverage-level decisions. |
| Keywords: | Insurance, Forest, Fire risk, Ambiguity, Public compensation, Experimental data |
| JEL: | C51 D81 Q23 Q28 |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:lef:wpaper:2014-12&r=env |
| By: | Barrett, S.; Lenton, T.M.; Millner, A.; Tavoni, A.; Carpenter, S.R.; Anderies, J.M.; Chapin III, F.S.; Crépin, A.S.; Daily, G.; Ehrlich, P.; Folke, C.; Galaz, V.; Hughes, T.P.; Kautsky, N.; Lambin, E.F.; Naylor, R.; Nyborg, K.; Polasky, S.; Scheffer, M.; Wilen, J.; Xepapadeas, A.; de Zeeuw, A.J. (Tilburg University, School of Economics and Management) |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiutis:880b526e-6ba9-4e48-8463-1fa7e0cfd66d&r=env |