|
on Environmental Economics |
|
Issue of 2015‒02‒16
forty-two papers chosen by Francisco S. Ramos Universidade Federal de Pernambuco |
| By: | Blasch, Julia (Department of Economics, Colgate University); Turner, Robert (Department of Economics, Colgate University) |
| Abstract: | Using a contingent choice survey of US citizens, we investigate the influence of environmental art on individual willingness to purchase voluntary carbon offsets. In a split-sample experiment, we compare the stated preferences of survey respondents in two different treatment groups to the preferences of a control group. One treatment group is shown photographs that illustrate the impacts of climate change; the other is shown animated images that illustrate wind speeds and patterns for extreme weather events. While individuals seeing the photographs show a higher willingness to purchase voluntary offset than the control group, respondents seeing the animated images seem less willing to buy offsets. This result remains stable when accounting for preference heterogeneity related to prior knowledge about climate change issues. We hypothesize that the differential impacts of the two kinds of artistic images are due to a combination of factors influencing individual choices: emotional affect, cognitive interest, and preferences for the prevention of specific climate change impacts as well as, more generally, internalized and social norms for the mitigation of climate change. |
| Keywords: | environmental art, climate change, carbon offsetting, knowledge, norms, discrete choice experiment |
| JEL: | Q5 Z1 |
| Date: | 2015–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:cgt:wpaper:2015-01&r=env |
| By: | Vassiliki Manoussi (Athens University of Economics and Business, Department of International and European Economic Studies); Anastasios Xepapadeas (Athens University of Economics and Business, Department of International and European Economic Studies) |
| Abstract: | We study a dynamic game of climate policy design in terms of emissions and solar radiation management (SRM) involving two heterogeneous regions or countries. Countries emit greenhouse gasses (GHGs), and can block incoming radiation by unilateral SRM activities, thus reducing global temperature. Heterogeneity is modelled in terms of the social cost of SRM, the environmental damages due to global warming, the productivity of emissions in terms of generating private benefits, the rate of impatience, and the private cost of geoengineering. We determine the impact of asymmetry on mitigation and SRM activities, concentration of GHGs, and global temperature, and we examine whether a trade-off actually emerges between mitigation and SRM. Our results could provide some insights into a currently emerging debate regarding mitigation and SRM methods to control climate change, especially since asymmetries seem to play an important role in affecting incentives for cooperation or unilateral actions. |
| Keywords: | Climate Change, Mitigation, Solar Radiation Management, Cooperation, Differential Game, Asymmetry, Feedback Nash Equilibrium |
| JEL: | Q53 Q54 |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2014.101&r=env |
| By: | Samuel Carrara (FEEM and CMCC); Emanuele Massetti (Georgia Institute of Technology, CESIfo and FEEM) |
| Abstract: | The extraction and processing of unconventional oil is more energy intensive and has larger negative environmental impacts than the extraction of conventional oil. The European Union (EU) estimates that oil sands lead to 22% more emissions than conventional oil. The EU is very concerned by the potential climate and environmental impacts and has considered introducing a tax on imported unconventional oil in order to discourage its production. This study shows that a global ban on the use of unconventional oil substantially reduces global carbon dioxide emissions, but the policy is not efficient. A unilateral ban of the EU on unconventional oil has no climate benefits and it is expensive for Europe. |
| Keywords: | Unconventional Oil, Climate Mitigation, Energy Policy, European Union |
| JEL: | Q37 Q42 Q48 Q56 |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2014.105&r=env |
| By: | Stefan Dercon |
| Abstract: | With serious impacts of climate change looming in a few decades, but currrent poverty still high in the developing word, we ask how to spend development aid earmarked for the poor. Poverty reduction tends to be strongly linked to economic growth, but growth impacts the environment and increases CO2 emissions. So can greener growth that is more climate-resilient and less environmentally damaging deliver large scale poverty reduction? Can aid be used for effective poverty reduction now without affecting carbon emissions substantially? We argue that there are bound to be trade-offs between emissions reductions and a greener growth on the one hand, and growth that is most effective in poverty reduction. We argue that development aid, earmarked for the poorest countries, should only selectively pay attention to climate change, and remain focused on fighting current poverty reduction, including via economic growth, not least as future resilience of these countries and their population will depend on their ability to create wealth and build up human capital now. The only use for development aid within the poorest countries or explicit climate-related investment ought to be when the investments also contribute to poverty reduction now, including for increasing resilience to current impacts of environmental shocks, or when the investments done now have serious intertemporal 'lock-in' problems so that they have implications also for when climate change bites by 2050. In our conclusions, we offer a series of concrete principles to judge development spending. |
| Keywords: | Green growth, poverty, environmental externalities |
| Date: | 2014–06–07 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:wpaper:wps/2014-24&r=env |
| By: | Pethig, Rüdiger; Eichner, Thomas |
| Abstract: | This paper studies within a multi-country model with international trade the stability of international environmental agreements (IEAs) when countries regulate carbon emissions either by taxes or caps. Regardless of whether coalitions play Nash or are Stackelberg leaders the principal message is that the choice of caps or taxes matters. International trade and tax regulation turn out to be necessary conditions for the existence of the encompassing self-enforcing IEA, and that the latter is attained the more likely, the less severe the climate damage. Hence, cap regulation is inferior to tax regulation insofar as in case of the former there exist no large and effective self-enforcing IEAs, in particular not the encompassing self-enforcing IEA. Further results are that for the formation of encompassing self-enforcing IEAs it does not matter (much) whether climate coalitions play Nash or are Stackelberg leaders or whether fossil fuel is modeled as a consumer good or an intermediate good. |
| JEL: | C72 F18 Q54 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc14:100342&r=env |
| By: | Jussi Lankoski; Markku Ollikainen; Elizabeth Marshall; Marcel Aillery |
| Abstract: | This paper investigates farmers’ incentives to participate voluntarily in carbon offset markets when environmental credit stacking is allowed, that is, farmers can stack water quality credits with carbon credits. The implications of stacking on additionality of environmental services in interlinked markets, market participation rates, and market equilibrium prices are analysed by developing a conceptual framework of environmental credit stacking, which is applied with data estimates for the US Corn Belt. Analysis shows that credit stacking increases farmers’ participation in carbon offset markets, and that such increased participation provides additionality in environmental service provision. It is further shown that ecosystem markets are interlinked so that credit price changes in one market will shift credit supply in another market, thus affecting equilibrium prices. Empirical application of the framework shows that provision of CO2-eq offsets through reductions of nitrogen application or through the establishment of green set-asides is not profitable without water quality credits. A conversion from conventional tillage and reduced tillage to no-till is profitable in some cases, although current low carbon offset prices and transaction costs have a significant negative impact on the number of participating parcels. When farmers are allowed to stack water quality credits the profitability of carbon sequestration practices increases. Reduced nitrogen application levels becomes a profitable option and 21% of field parcels - representing 4.6 million acres- participate in the market with water quality credit prices at base levels of USD 3/lb for N and USD 4/lb for P. The establishment of green set-aside and streamside buffer strips becomes profitable in the lower productivity and highly erodible lands with base prices of nutrient credits. If water quality trading markets are small then high participation rates among farmers may result in an oversupply of nutrient credits and as a consequence equilibrium credit prices and farmers’ credit revenue would decrease. |
| Keywords: | transaction costs, interlinked environmental markets, additionality, carbon offset, nutrient credit |
| JEL: | Q53 Q54 Q57 Q58 |
| Date: | 2015–02–06 |
| URL: | http://d.repec.org/n?u=RePEc:oec:agraaa:72-en&r=env |
| By: | Bernhard Rengs; Manuel Scholz-Wäckerle; Ardjan Gazheli; Miklós Antal; Jeroen van den Bergh |
| Abstract: | Climate policy has been mainly studied with economic models that assume representative, rational agents. However, it aims at changing behavior associated with carbon-intensive goods that are often subject to bounded rationality and social preferences, such as status and imitation. Here we use a macroeconomic multi-agent model with such features to test the effect of various policies on both environmental and economic performance. The model is particularly suitable to address distributional impacts of climate policies, not only because populations of many agents are included, but also as these are composed of different classes of households driven by specific motivations. We simulate various policy scenarios, combining in different ways a carbon tax, a reduction of labor taxes, subsidies for green innovation, a price subsidy to consumers for less carbon-intensive products, and green government procurement. The results show pronounced differences with those obtained by rational-agent model studies. It turns out that demand-oriented subsidies lead to lower unemployment and higher output, but perform less well in terms of carbon emissions. The supply-oriented subsidy for green innovation results in a significant reduction of carbon emissions with a slight reduction of unemployment. |
| Keywords: | Agent based modelling; climate change; bounded rationality; carbon productivity; environmental innovation; double dividend; other-regarding preferences |
| JEL: | B52 C63 H3 Q55 |
| Date: | 2015–02 |
| URL: | http://d.repec.org/n?u=RePEc:feu:wfewop:y:2015:m:2:d:0:i:83&r=env |
| By: | Dascher, Kristof |
| Abstract: | A country's urban silhouettes prophesy its future climate policy, or so this paper argues. The more its city silhouettes are skewed to the periphery, the more likely a country is to implement the carbon tax. This is why the effect of a country's urban form on greenhouse gas emissions -- a bone of contention in the recent literature -- cannot be separated from that country's choice of carbon tax. From this paper's perspective, a country with greater city silhouette skews may emit less greenhouse gases not so much because its cities are more compact but because it places a higher price on carbon consumption. |
| JEL: | R12 Q54 H41 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc14:100538&r=env |
| By: | Schenker, Oliver; Koesler, Simon; Löschel, Andreas |
| Abstract: | In the last decades supply chains emerged that stretch across many countries. This has been explained with decreasing trade and communication costs. We extend the literature by analyzing if and how unilateral environmental regulation induces offshoring to unregulated jurisdictions. We first apply an analytical partial-equilibrium model of a two-stage production process that can be distributed between two countries and investigate unilateral emission pricing and its supplementation with border carbon taxes. To get a more comprehensive picture, we subsequently apply a computable general equilibrium model that includes a better representation of international supply chains. We find heterogeneous, but mostly positive effects of a unilateral carbon emission reduction by the European Union on the degree of vertical specialisation of European industries and explain these differences by heterogeneity in the emission-intensity and pre-policy vertical specialisation of sectors. Border taxes are successful in protecting upstream industries, but with negative side effects for downstream industries. |
| Keywords: | Unilateral Climate Policy,Border Carbon Taxes,Vertical Specialisation,Offshoring,Outsourcing,Computable General Equilibrium |
| JEL: | C68 F12 F18 Q58 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cawmdp:77&r=env |
| By: | Gunnar Luderer (Potsdam Institute for Climate Impact Research, Potsdam, Germany); Christoph Bertram (Potsdam Institute for Climate Impact Research, Potsdam, Germany); Katherine Calvin (PNNL, USA); Enrica De Cian (Fondazione Eni Enrico Mattei (FEEM), Italy); Elmar Kriegler (Potsdam Institute for Climate Impact Research, Potsdam, Germany) |
| Abstract: | While the international community has agreed on the long-term target of limiting global warming to no more than 2°C above pre-industrial levels, only a few concrete climate policies and measures to reduce greenhouse gas (GHG) emissions have been implemented. We use a set of three global integrated assessment models to analyze the implications of current climate policies on long-term mitigation targets. We define a weak-policy baseline scenario, which extrapolates the current policy environment by assuming that the global climate regime remains fragmented and that emission reduction efforts remain unambitious in most of the world’s regions. These scenarios clearly fall short of limiting warming to 2°C. We investigate the cost and achievability of the stabilization of atmospheric GHG concentrations at 450 ppm CO2e by 2100, when countries follow the weak policy pathway until 2020 or 2030 before pursuing the long-term mitigation target with global cooperative action. We find that after a deferral of ambitious action the 450 ppm CO2e is only achievable with a radical up-scaling of efforts after target adoption. This has severe effects on trans-formation pathways and exacerbates the challenges of climate stabilization, in particular for a delay of cooperative action until 2030. Specifically, reaching the target with weak near-term action implies (a) faster and more aggressive transformations of energy systems in the medium term, (b) more stranded investments in fossil-based capacities, (c) higher long-term mitigation costs and carbon prices and (d) stronger transitional economic impacts, rendering the political feasibility of such pathways questionable. |
| Keywords: | Climate Change, Mitigation |
| JEL: | Q5 Q58 |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2015.05&r=env |
| By: | Alfredo Marvão Pereira (Department of Economics, The College of William and Mary); Rui M. Pereira (Department of Economics, The College of William and Mary) |
| Abstract: | We consider the environmental, economic, and budgetary effects of a new carbon tax indexed to the carbon price in the EU-ETS market in the context of a dynamic general equilibrium model of the Portuguese economy. We show that the careful recycling of the carbon tax revenues to finance reductions in the personal income tax, in the social security taxes and increases in investment tax credits, in particular when these changes are connected to energy efficiency promoting activities, allows for the carbon tax reform to yield three dividends – reduction in emissions, improvement in economic conditions, and improvements in the budgetary position. By doing so we show that it is possible to design a carbon tax reform that is politically feasible as it satisfies the main constraints of the domestic economy – the quest for growth and for fiscal consolidation – and can accommodate the legitimate interests and needs of different social players–the focus on environmental goals by environmental groups, the concerns with households distributional issues by consumer advocacy groups, and with international competitiveness by business groups. |
| Keywords: | Carbon Taxation, Economic Performance, Budgetary Consolidation, Three Dividends, Portugal. |
| JEL: | D58 H63 O44 |
| Date: | 2015–02–05 |
| URL: | http://d.repec.org/n?u=RePEc:cwm:wpaper:155&r=env |
| By: | Benjamin Van Doorslaer (European Commission – JRC - IPTS); Peter Witzke (EuroCARE GmbH); Ingo Huck (European Commission – JRC - IPTS); Franz Weiss (European Commission – JRC - IES); Thomas Fellmann (European Commission – JRC - IPTS); Guna Salputra (European Commission – JRC - IPTS); Torbjörn Jansson (Swedish University of Agricultural Sciences); Dusan Drabik (European Commission – JRC - IPTS); Adrian Leip (European Commission – JRC - IES) |
| Abstract: | The report presents an overview of the historical and projected development of agricultural GHG emissions in the EU. The major objective of the report is to present the improvements made in the CAPRI modelling system with respect to GHG emission accounting and especially regarding the implementation of endogenous technological mitigation options. Furthermore, the CAPRI model was applied to provide a quantitative assessment of illustrative GHG mitigation policy options in the agricultural sector, and their production and economic implications. |
| Keywords: | greenhouse gas emissions, agriculture, mitigation policy, climate policy, EU, CAPRI model, agricultural markets, emission leakage |
| JEL: | Q18 Q58 Q02 Q11 |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc93434&r=env |
| By: | Schäfer, Andreas |
| Abstract: | Higher child mortality reduces the willingness of parents to invest in children's education and increases their desired level of fertility. In this context, economic inequality is not only decisive for human capital investments and the emergence of differential fertility, but also for agents' exposure to environmental pollution because wealthier households live in cleaner areas. This is the key mechanism through which environmental conditions may impose a growth drag on the economy. In addition, preferred levels of tax-financed abatement measures differ between population groups with different exposures to pollutants, in the sense that the least affected population group prefers the lowest tax rate. Thus, the adverse effect of inequality and pollution on economic growth is amplified, if the population group that is least affected decides about the level of tax-financed abatement measures. |
| JEL: | O10 Q50 I10 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc14:100576&r=env |
| By: | Benjamin Dequiedt; Vera Eory; Juliette Maire; Cairstiona F.E. Topp; Robert Rees; Peter Zander; Moritz Reckling; Nicole Schlaefke |
| Abstract: | TTo develop a better understanding of the agriculture sector in the context of climate change and the corresponding issue of cutting greenhouse gas (GHG) emissions, this paper aims at assessing regional mitigation potential and cost due to changing crops rotations at farm-scale in five European regions. For this purpose, we use rotation database from Reckling et al (2014) bringing accurate and exhaustive data about crop management in these areas. First, we complete the database with nitrous-oxide (N2O) emissions calculations and bring an additional hypothesis on precrop effect so as to capture the diversity of knowledge outlined in the agronomic literature. Then, GHG abatement cost is assessed using a bottom-up approach and assuming that farmers are maximizing their profit. In the literature on mitigation cost assessment, the abatement effort is generally considered as marginal and hence is added to previous cumulated efforts of reduction. In contrast, this study analyses rotation switch which implies a complete switch of cropland systems on several years (up to 6 years). Results show that aggregated “win-win” abatement potential in the five European regions could reach a maximum of 35% of the baseline soil N2O emissions of arable areas. The total dry matter production is increasing, while the area under cereal production is decreasing to this level of GHG abatement. Consequently, these findings tend to indicate that variations in agricultural production linked to a mitigation policy, while generating important changes in cropping systems, would not necessarily endanger food security. |
| Keywords: | NO2 emissions, Fertilization, Crops rotations, Abatement cost curve, Cropping system switch, Five european regions |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:cec:wpaper:1502&r=env |
| By: | Christoph Böhringer, Nicholas Rivers, Thomas F. Rutherford, Randall Wigle (Wilfrid Laurier University) |
| Abstract: | Dividing the burden for greenhouse gas abatement amongst the provinces has proven challenging in Canada, and is a major factor contributing to Canada’s poor historic performance on greenhouse gas abatement. As the country aims to achieve substantial cuts to emissions over the next decade and by mid-century, such burden sharing considerations are likely to be elevated in importance. This paper uses a detailed Canadian computable general equilibrium model to compare a number of archetypal rules for sharing the burden of a joint commitment amongst members for the case of greenhouse gas reductions in Canada. Because of the substantial heterogeneity amongst Canadian provinces, these different burden sharing rules imply significantly different relative abatement effort amongst provinces, and also significantly different welfare implications. We compare these archetypal burden sharing rules to existing provincial emission reduction commitments, and find that none of the standard burden sharing rules comes close to existing commitments. We argue that future efforts to share the burden of greenhouse gas abatement in Canada would be more successful if they were informed by a formal analysis such as the one presented here. |
| Keywords: | climate change, burden sharing, policy, computable general equilibrium model |
| JEL: | C68 Q50 |
| Date: | 2015–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:wlu:lcerpa:0082&r=env |
| By: | Kubatko Oleksandr; Kubatko Oleksandra |
| Abstract: | This paper estimates the influence of pollution on population health outcomes throughmeasuring direct and indirect pollution health effects. It is found that air pollution increase thenumber of population morbidities, and responsible on average for 10.3% of all incidents ofcardiovascular morbidity; 11% of digestion morbidity cases, 16% of respiratory morbidity cases,30% and 10.5% of man lung cancer and women lung cancer respectively. Also air pollution isresponsible on average for 3.6% of all mortality cases in Ukraine. Total economic costs attributed toair pollution and selected morbidity indicators in 2011 were in a range 0.7%-1.3% of GDP. |
| JEL: | I Q |
| Date: | 2015–02–02 |
| URL: | http://d.repec.org/n?u=RePEc:eer:wpalle:15/01e&r=env |
| By: | Chetroiu, Rodica; Iurchevici, Lidia |
| Abstract: | The complexity of the relations between agriculture and environment has created the need to introduce environmental issues into the CAP. The principle of good agricultural practices is essential to understand this relation between agriculture and environment. Environmental measures in agriculture aim at the animal farm activity takes place in accordance with the recommended technologies and livestock waste management in conditions of minimum impact on the environment factors. In this paper, it estimates the annual production of organic fertilizer from farm activity, the quantities of nutrients (nitrogen, phosphorus and potassium) resulting from these, and the areas of agricultural land that can be fertilized with these quantities. The calculations took into account farm modules for the following products: cow's milk, sheep's milk, goat's milk, beef, pork, poultry, and eggs for consumption. |
| Keywords: | environment, animal husbandry, fertilizers, organic, agricultural holding |
| JEL: | Q12 Q52 Q57 |
| Date: | 2014–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:61772&r=env |
| By: | Rausch, Sebastian; Abrell, Jan |
| Abstract: | We quantitatively characterize optimal carbon, capital, and labor income taxes in an economy-climate integrated assessment model that features overlapping generations and distortionary fiscal policy. First, we show that the optimal carbon tax significantly differs from the Pigouvian carbon levy in a first-best setting with overlapping generations in which fully rational households optimize over finite lifetimes. The key driving force behind this result is the life-cycle structure of the our model, in conjunction with endogenously chosen labor supply. We also show that the assumed labor supply elasticity is important for the size of deviation of the optimal carbon tax from the Pigouvian tax, but not the existence of the deviation from Pigouvian pricing. Second, interacting life-cycle household behavior with distortionary fiscal policy is shown to further drive a wedge between the second-best optimal carbon tax and a Pigouvian carbon levy. |
| JEL: | E13 H21 H24 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc14:100513&r=env |
| By: | Borck, Rainald |
| 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. |
| JEL: | Q54 R14 R21 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc14:100566&r=env |
| By: | Todd D. Gerarden; Richard G. Newell; Robert N. Stavins; Robert C. Stowe |
| Abstract: | Improving end-use energy efficiency—that is, the energy-efficiency of individuals, households, and firms as they consume energy—is often cited as an important element in efforts to reduce greenhouse-gas (GHG) emissions. Arguments for improving energy efficiency usually rely on the idea that energy-efficient technologies will save end users money over time and thereby provide low-cost or no-cost options for reducing GHG emissions. However, some research suggests that energy-efficient technologies appear not to be adopted by consumers and businesses to the degree that would seem justified, even on a purely financial basis. We review in this paper the evidence for a range of explanations for this apparent “energy-efficiency gap.” We find most explanations are grounded in sound economic theory, but the strength of empirical support for these explanations varies widely. Retrospective program evaluations suggest the cost of GHG abatement varies considerably across different energy-efficiency investments and can diverge substantially from the predictions of prospective models. Findings from research on the energy-efficiency gap could help policy makers generate social and private benefits from accelerating the diffusion of energy-efficient technologies—including reduction of GHG emissions. |
| JEL: | Q4 Q48 |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20905&r=env |
| By: | Anna Alberini (AREC, University of Maryland, Fondazione Eni Enrico Mattei (FEEM), Center for Economic Research, ETH Zurich, and Queen’s University Belfast); Andrea Bigano (Fondazione Eni Enrico Mattei (FEEM) and Euro-Mediterranean Centre on Climate Change (CMCC)) |
| Abstract: | We evaluate incentives for residential energy upgrades in Italy using data from an original survey of Italian homeowners. In this paper, attention is restricted to heating system replacements, and to the effect of monetary and non-monetary incentives on the propensity to replace the heating equipment with a more efficient one. To get around adverse selection and free riding issues, we ask stated preference questions to those who weren’t planning energy efficiency upgrades any time soon. We argue that these persons are not affected by these behaviors. We use their responses to fit an energy-efficiency renovations curve that predicts the share of the population that will undertake these improvements for any given incentive level. This curve is used to estimate the CO2 emissions saved and their cost-effectiveness. Respondents are more likely to agree to a replacement when the savings on the energy bills are larger and experienced over a longer horizon, and when rebates are offered to them. Reminding about CO2 (our non-monetary incentive) had little effect. Even under optimistic assumptions, the cost-effectiveness of incentives of size comparable to that in the Italian tax credit program is generally not favorable. |
| Keywords: | Energy-efficiency Incentives, Free Riding, Adverse Selection, Stated Preferences, CO2 Emissions Reductions; CO2 emissions Reductions Supply Curves, Residential Energy Consumption |
| JEL: | Q41 Q48 Q54 Q51 |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2014.97&r=env |
| By: | Aflaki, Sam; Masini , Andrea |
| Abstract: | The paper aims to contribute to the longstanding technology-push vs. demand-pull debate and to the literature on renewable energy diffusion and renewable energy policy assessment. The authors argue that in addition to the traditional push-pull dichotomy, the drivers of technological change must be differentiated by whether they are exogenous or endogenous to the economic system. They maintain that a specific type of endogenous demand-pull mechanism (i.e. economic growth) is a major catalyst of environmental innovation. We apply this perspective to study the diffusion of renewable energy (RE) technologies in 15 European Union countries from 1990 to 2012. Applying different panel data estimators, the authors find that public R&D investments, policies supporting RE and per capita income all have a positive impact on RE diffusion, whereas the variability of policy support has a negative impact. However, they also find that economic growth is a stronger driver than either public R&D investments or policies supporting RE, and that models that do not take it explicitly into account tend to overestimate the importance of exogenous drivers. Most importantly, they note that the effect of economic growth on RE diffusion exhibits a nonlinear, U-shaped pattern that resonates with the well-known Environmental Kuznets Curve hypothesis. RE penetration remains negligible at low levels of growth whereas it increases sharply only after income per capita has reached a given threshold and the demand for environmental quality rises. Their findings have implications for policy making. They suggest that for RE diffusion to increase, government action should be directed not only at shielding renewables from competition with fossil fuel technologies but also at stimulating aggregated demand and economic growth. |
| Keywords: | Deployment policy; Technological innovation; Renewable Energy; Environmental Kuznets Curve; Nonstationary Panel |
| JEL: | C23 O31 O33 O38 O44 |
| Date: | 2014–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:ebg:heccah:1070&r=env |
| By: | Claire Gavard (Fondazione Eni Enrico Mattei (FEEM) and Euro-Mediterranean Center on Climate Change (CMCC), Italy); Djamel Kirat (Laboratoire d’Economie d’Orléans (LEO), Université d’Orléans, France) |
| Abstract: | We analyze the price dynamics of European allowances and international carbon credits in the second phase of the European carbon market. We develop and use a model combining fundamental drivers associated with the demand for quotas by installations and risk-return considerations related to the financial nature of carbon permits. We estimate it with autoregressive conditional heteroskedasticity models. Although carbon permits present some characteristics of financial assets, we find that an increased volatility is not associated with an increased return. The price of allowances and credits are explained by similar factors. However, whereas the corresponding returns present comparable dynamics, the long-term relationships between the price of these two types of permits and their drivers differ significantly. While the price of allowances is demand-driven, we suggest the existence of a supply-side effect for credits, and explain it by the flexibility in the related market. The impact of the European economic activity is less visible on credits than on allowances. The price elasticity of allowances with regards to the coal and gas prices is negative in time periods of low economic activity while it is positive in the rest of the time. We suggest an explanation for this dynamics difference. |
| Keywords: | European Allowances International Credits, Emissions Trading, Power Sector, Time Series Analysis |
| JEL: | C32 C58 Q48 Q54 Q58 |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2015.03&r=env |
| By: | Heidecke, Claudia; Hirt, Ulrike; Kreins, Peter; Kuhr, Petra; Kunkel, Ralf; Mahnkopf, Judith; Schott, Michael; Tetzlaff, Björn; Venohr, Markus; Wagner, Andrea; Wendland, Frank |
| Abstract: | Die Europäische Wasserrahmenrichtlinie (EG-Wasserrahmenrichtlinie 2000) hat zum Ziel in den Flusseinzugsgebieten Europas das Erreichen eines guten Zustands bzw. des guten ökologischen Potenzials und des guten chemischen Zustands aller Oberflächengewässer sowie des guten mengenmäßigen und chemischen Zustands des Grundwassers bis zum Jahr 2015 herzustellen. Eine Fristverlängerung ist bis 2021 bzw. 2027 in Ausnahmefällen möglich. Für die Flussgebietseinheit Weser werden die Zielkonzentrationen Stickstoff und Phosphor bis 2015 nicht erreicht. Daher ist es Ziel des Projektes AGRUM+ die Nährstoffeinträge und -konzentrationen im Jahr 2021 abzuschätzen und wissenschaftliche Analysen zur Unterstützung der Maßnahmenplanung und Umsetzung zu liefern. Dafür wird der Modellverbund AGRUM Weser bestehend aus den Modellen RAUMIS, GROWA, DENUZ/WEKU, MEPhos und MONERIS erheblich weiterentwickelt und angepasst. Die Ergebnisse zeigen, dass sich die in der Vergangenheit zu beobachtende Reduzierung der Nährstoffbilanzüberschüsse auch bis 2021 fortsetzen wird und somit auch eine Reduzierung der Nährstoffeinträge in das Grundwasser und die Oberflächengewässer zu erwarten ist. Jedoch werden für die Baseline 2021 für die beiden untersuchten Nährstoffe Stickstoff und Phosphor unter Berücksichtigung der Wirkungsverzögerung weder die Ziele für das Grundwasser noch die Zielkonzentrationen für die Oberflächengewässer erreicht. Der Umfang der notwendigen Maßnahmen sowie die regionalen Schwerpunkte der notwendigen Maßnahmen verdeutlichen, dass eine Ausdehnung der Agrarumweltmaßnahmen sowie eine moderate Verschärfung der Düngeverordnung nicht ausreichen werden, um die Gewässerschutzziele zu erreichen. |
| Abstract: | The aim of the European Water Framework Directive is the achievement of a good ecological or rather ecological potential and chemical status for surface waters, as well as a good chemical and quantitative status for groundwater until 2015. For the river basin Weser the target concentrations will not be achieved by 2015. For exemptions extended deadlines until 2021 and 2027 are possible. Hence the aim of the AGRUM+ project is to analyze nutrient inputs and nutrient concentrations until 2021 and to conduct scientific analysis for the design of measure plans and their implementation. For this the AGRUM Weser model network consisting of the models RAUMIS, GROWA, DENUZ/WEKU, MEPhos and MONERIS is further developed and adapted. Results show that the past trend of decline of nutrient surpluses will be further continued until 2021 which also leads to a reduction of nutrient inputs into ground and surface waters. Nevertheless, in the baseline 2021 the target concentrations for the nutrients nitrate and phosphorous for ground- and surface water will not be achieved even considering an impact delay. The amount of necessary measures and the regional hot-spots of measures show that an increase in agri-environmental measures as well as a moderate intensification of the manure regulation will not be sufficient to achieve the water protection targets. |
| Keywords: | Wasserrrahmenrichtlinie,Nährstoffüberschüsse,Nährstoffkonzentrationen,Nährstofffrachten,Agrarumweltmaßnahmen,Water Framework Directive,nutrient surpluses,nutrient concentrations,nutrient loads,agricultural environmental measures |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:jhtire:21&r=env |
| By: | Tim Keighley (Faculty of Business and Economics, Macquarie University); Thomas Longden (Faculty of Business and Economics, Macquarie University); Supriya Mathew (Northern Institute, Charles Darwin University); Stefan Trück (Faculty of Business and Economics, Macquarie University) |
| Abstract: | The analysis of catastrophic and climate impacted hazards is a challenging but important exercise, as the occurrence of such events is usually associated with high damage and uncertainty. Often, at the local level, there is a lack of information on rare extreme events, such that available data is not sufficient to fit a distribution and derive parameter values for the frequency and severity distributions. This paper discusses local assessments of extreme events and examines the potential of using expert opinions in order to obtain values for the distribution parameters. In particular, we illustrate a simple approach, where a local expert is required to only specify two percentiles of the loss distribution in order to provide an estimate for the severity distribution of climate impacted hazards. In our approach, we focus on so-called heavy-tailed distributions for the severity, such as the Lognormal, Weibull and Burr XII distribution. These distributions are widely used to fit data from catastrophic events and can also represent extreme losses or the so-called tail of the distribution. An illustration of the method is provided utilising an example that quantifies the risk of bushfires in a local area in Northern Sydney. |
| Keywords: | Catastrophic Risks, Climate Impacted Hazards, Expert Opinions, Local Level Decision Making, Loss Distribution Approach |
| JEL: | Q5 Q54 Q58 |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2014.93&r=env |
| By: | Thomas Michielsen; Reyer Gerlagh; Inge van den Bijgaart; Hans Nijland |
| Abstract: | To what extent have national fiscal policies contributed to the decarbonisation of newly sold passenger cars? We construct a simple model that generates predictions regarding the effect of fiscal policies on average CO<sub>2</sub> emissions of new cars, and then test the model empirically. Our empirical strategy combines a diverse series of data. First, we use a large database of vehicleâ€specific taxes in 15 EU countries over 2001â€2010 to construct a measure for the vehicle registration and annual road tax levels, and separately, for the CO<sub>2</sub> sensitivity of these taxes. We find that for many countries the fiscal policies have become more sensitive to CO<sub>2</sub> emissions of new cars. We then use these constructed measures to estimate the effect of fiscal policies on the CO<sub>2</sub> emissions of the new car fleet. The increased CO<sub>2</sub>â€sensitivity of registration taxes have reduced the CO2 emission intensity of the average new car by 1,3 percent, partly through an induced increase of the share of dieselâ€fuelled cars by 6,5 percentage points. Higher fuel taxes lead to the purchase of more fuel efficient cars, but higher annual road taxes have no or an adverse effect. Key Words: vehicle registration taxes, fuel taxes, CO<sub>2</sub> emissions |
| JEL: | H30 L62 Q48 Q54 Q58 R48 |
| Date: | 2015–02 |
| URL: | http://d.repec.org/n?u=RePEc:cpb:discus:302&r=env |
| By: | Sima, Elena |
| Abstract: | By its geographical location, the rural area from Dobrudgea has a diversified tourism potential, provided by the contrasting natural environmental factors, ranging from the oldest to the youngest relief units, natural protected areas, balneary resources and cultural, historical, religious sites, as well as multicultural local customs and traditions of the rural area. This potential can be used under various forms in the rural area: cultural tourism, historical tourism, religious tourism, ecotourism, fishing tourism or bird-watching tourism, as well as other kinds of rural tourism. By linking these tourism resources and tourism forms, tourism routes can result, which, together with the local customs, traditions and cuisine may contribute to the social and economic development of Dobrudgea’s rural area, through sustainable tourism as an alternative to seasonal seashore tourism. |
| Keywords: | sustainable tourism, rural area, economic development, Dobrudgea |
| JEL: | Q01 R11 |
| Date: | 2014–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:61767&r=env |
| By: | Phoebe Koundouri; Osiel Gonzalez Davila; Theologos Pantelidis |
| Abstract: | This study exploits the data from a full-preference ranking Choice Experiment (CE) designed to investigate how respondents evaluate a set of proposed improvements in the Asopos water catchment in Greece. These improvements are following the prescriptions of the European Union Water Framework Directive (2000). We first estimate a rank-ordered logistic regression based on the full set of choices by respondents to calculate the willingness to pay (WTP) of respondents for each one of the three attributes considered in the CE (that is, environmental conditions, impact on the local economy and changes in the potential uses of water). The model is initially estimated for the full sample and then re-estimated twice for two sub-samples: the one includes only the residents of Athens and the other includes only the residents of Asopos. Afterwards, we examine the effect of various demographic and socio-economic factors (such as income, gender, age, employment and education) on the estimates of our model in an attempt to reveal any differences among respondents with different characteristics. Thus, our analysis simultaneously provides a robustness check on previous findings in the literature and additional information about how various demographic and socio-economic characteristics affect the evaluation of the selected attributes. |
| Keywords: | Choice experiment, Full-preference ranking, Logistic regression, Asopos River Basin, Environmental degradation, Water quality and quantity; Random utility maximization; Logit probabilities; Water Framework Directive; Residency-specific use and non-use val |
| JEL: | Q25 Q51 Q53 |
| Date: | 2015–02–05 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:1505&r=env |
| By: | Tutt, Jascha; Berlemann, Michael; Steinhardt, Max |
| Abstract: | In the course of the ongoing process of climate change, natural disasters like storms, floods and droughts become more likely and/or more severe. While there is a growing macroeconomic literature on the growth-effects of natural disasters, little is yet known about the microeconomic channels through which certain types of disasters might affect short and especially long-run growth. This paper contributes to filling this gap in the literature by studying behavioural responses to the August 2002 flood in central Europe. Based on the GSOEP dataset we study individual saving behaviour and migration decisions of directly affected and unaffected individuals. We find a significant decrease of individual savings and an increasing probability to move out of the affected area throughout the years after the flood occurred. Both effects might induce negative long-term growth consequences. |
| JEL: | Q54 O15 D14 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc14:100526&r=env |
| By: | Plötz, Patrick; Funke, Simon; Jochem, Patrick |
| Abstract: | Plug-in hybrid electric vehicles (PHEV) combine electric propulsion with an internal combustion engine. Their potential to reduce transport related green-house gas emissions highly depends on their actual usage and electricity provision. Various studies underline their environmental and economic advantages, but are based on standardised driving cycles, simulations or small PHEV fleets. Here, we analyse real-world fuel economy of PHEV and the factors influencing it based on about 2,000 actual PHEV that have been observed over more than a year in the U.S. and Germany. We find that real-world fuel economy of PHEV differ widely among users. The main factors explaining this variation are the annual mileage, the regularity of daily driving, and the likelihood of long-distance trips. Current test cycle fuel economy ratings neglect these factors. Despite the broad range of PHEV fuel economies, the test cycle fuel economy ratings can be close to empiric PHEV fleet averages if the average annual mileage is about 17,000 km. For the largest group of PHEV in our data, the Chevrolet Volt, we find the average fuel economy to be 1.45 litres/100 km at an average electric driving share of 78%. The resulting real-world tank-to-wheel CO2 emissions of these PHEV are 42 gCO2/km and the annual CO2 savings in the U.S. amount to about 50 Mt. In conclusion, the variance of empirical PHEV fuel economy is considerably higher than of conventional vehicles. This should be taken into account by future test cycles and high electric driving shares should be incentivised. |
| Keywords: | electric vehicles,plug-in hybrid electric vehicles,real-world fuel economy,utility factor |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisisi:s12015&r=env |
| By: | André, Francisco J.; de Castro, Luis Miguel |
| Abstract: | Prior research has shown, on the one hand, that firms subject to a cap-and-trade system can enjoy scarcity rents and, on the other hand, that cost effectiveness in a competitive emission permit market could be affected by tacit collusion and price manipulation when the corresponding polluting product market is oligopolistic. It has also been argued that this type of collusive behavior might be responsible for the high prices of permits observed during the first phase of the EU ETS. We analyze these cross market links using a Stackelberg model to show that, under reasonable assumptions, there are no incentives to collude in order to manipulate prices up. However, incentives for manipulating the price of permits upward appear if there is an initial free allocation of permits, which is a policy argument against grandfathering and in favor of auctioning. This effect is increasing with the amount of permits allocated to the leader. The likelihood of observing price manipulation increases with those changes that tend to undermine the leader’s advantage in output production or to reduce the leader’s abatement cost. |
| Keywords: | Emissions permits, Collusion, Market power, Duopoly, Stackelberg model. |
| JEL: | D43 L13 Q58 |
| Date: | 2015–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:61770&r=env |
| By: | Anne-Célia Disdier; Stéphan Marette; Guy Millet |
| Abstract: | A lab experiment evaluates the consequences of the palm oil controversy on consumers’ willingness to pay (WTP) for food products. Palm oil production induces environmental damages, and its consumption presents a health risk. However, the production of alternative oils raises land use issues. In the experiment, successive messages emphasizing the controversial nature of palm oil and palm oil-free products are delivered to participants. Information has a significant influence on WTP when it underlines the negative impact of the related product. This effect is stronger for the palm oil product than for the palm oil-free product. The experiment also compares the welfare effects of two regulatory instruments, namely a consumer information campaign versus a per-unit tax. Because of the controversial nature of both products, the information campaign improves welfare with a much larger impact than the tax. |
| JEL: | H23 |
| URL: | http://d.repec.org/n?u=RePEc:fsc:fspubl:7&r=env |
| By: | Mehdi Shiva; Andrzej Kwiatkowski |
| Abstract: | We investigate the causes of an internal conflict by adding ambient climate factors to the existing bundle of most significant variables. It turns out that – controlling for possible associations – temperature could actually induce a conflict. We emphasise that temperature could not be a dominant reason in starting a conflict; however, it could escalate the chances when other factors are present. This paper mentions some of the related psychological studies to support this claim. We also show that grievance factors could actually be rightfully effective in starting an internal conflict alongside greed based reasons. In the end, we believe that it could be constructive to study ambient factors more often in economics. |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:dun:dpaper:282&r=env |
| By: | Senicovscaia, Irina |
| Abstract: | The role of biota as a natural resource for the restoration of degraded chernozems of the Republic of Moldova is under discussion till nowadays. The status of biota of old-arable chernozems in conditions of the green manure applications has been evaluated statistically. Two experimental sites located in the central and southern zone of the Republic of Moldova have been tested by soil biological indicators during 2010-2012. The application of vetch as a green manure had created conditions for the improvement of the biota’s vital activity in chernozems which had been degraded as a result of a long-term arable use. The number of invertebrates increased from 48.1-55.0 to 71.6 - 78.0 ex m-2, the number of Lumbricidae family – from 25.6-38.0 to 43.3-68.0 ex m-2. The effect of green manure was manifested in the increase of share of Lumbricidae family in the total number of invertebrates by 12.1-20.8 %. The microbial biomass content in the arable layer of soils rose up in average by 1.4-1.5 times. The humification processes intensified as a result of the interaction between the fresh organic matter and the soil biota. Biological parameters did not reach the level of soils under natural vegetation. Management with the green manuring for the biota’s restoration of degraded soils and for the improvement of soil quality and environment has been recommended. |
| Keywords: | soil biota, green manure, degraded chernozem |
| JEL: | O13 O44 O50 Q24 |
| Date: | 2014–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:61749&r=env |
| By: | Oehlmann, Malte; Weller, Priska; Meyerhoff, Jürgen |
| Abstract: | In this paper we investigate the influence of choice task complexity on the propensity to choose the status quo (SQ) alternative in discrete choice experiments. Task complexity is characterized in terms of the design dimensionality systematically varying the number of choice sets, alternatives, attributes and levels as well as the level range using 16 split samples. Moreover, we use the number of level changes across alternatives and entropy to capture further complexity effects. First, we show that the frequency of choosing the SQ and the number of those respondents who always stay at the SQ varies across designs. Using a count data model and a binary logit we observe that both figures are particularly influenced by the number of alternatives. By interacting the alternative-specific constant of the SQ with our complexity measures in a conditional and random parameter logit, we then find that the probability to choose the SQ decreases with the number of alternatives and with designs having three attribute levels. The propensity to stay at the SQ, however, increases with higher values of entropy, more choice sets, and designs with a wider level range. Significant effects of socio-demographic characteristics on SQ choices are present in all our models. |
| JEL: | Q51 C35 D03 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc14:100616&r=env |
| By: | Turek Rahoveanu, Petruta |
| Abstract: | Using solar energy through photovoltaic systems implementation in an agricultural household leads to the increasing of it’s efficiency, to optimizing energy balance thus implying the decreasing of the primary energy costs. The solar energy refers to a renewable energy source that is produced directly by light and solar radiation. It can be used to generate electricity through solar cells (photovoltaic); to generate electricity through thermal power plants; to generate electricity through solar towers,etc. The introduction and development of new technologies and processes through the use of energy from renewable sources leads to production costs reduction and implicitly to the increase of economic profitability of the agricultural holding. |
| Keywords: | renewable energy, solar energy, photovoltaic panels |
| JEL: | Q16 Q29 Q40 Q42 |
| Date: | 2014–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:61753&r=env |
| By: | Christian Krekel; Jens Kolbe; Henry Wüstemann |
| Abstract: | This paper investigates the effects of urban green and abandoned areas on residential well-being in major German cities, using panel data from the German Socio-Economic Panel (SOEP) for the time period between 2000 and 2012 and cross-section data from the European Urban Atlas (EUA) for the year 2006. Using a Geographical Information System (GIS), it calculates the distance to urban green and abandoned areas, measured as the Euclidean distance in 100 metres between households and the border of the nearest urban green and abandoned area, respectively, and the coverage of urban green and abandoned areas, measured as the hectares covered by urban green and abandoned areas in a pre-defined buffer area of 1,000 metres around households, respectively, as the most important determinants of access to them. It shows that, for the 32 major German cities with more than 100,000 inhabitants, access to urban green areas, such as parks, is significantly positively associated, whereas access to abandoned areas, such as brown fields, is significantly negatively associated with residential well-being, in particular with life satisfaction, as well as mental and physical health. The effects are strongest for residents who are older, accounting for up to a third of the size of the effect of being unemployed on life satisfaction. Using data from the Berlin Aging Study II (BASE-II) for the time period between 2009 and 2012, this paper also shows that (older) residents who report living closer to greens have been diagnosed significantly less often with certain medical conditions, including diabetes, sleep disorder, and joint disease. |
| Keywords: | Life satisfaction, mental health, physical health, urban land use, green areas, greens, forests, waters, abandoned areas, SOEP, BASE-II, EUA, GIS, spatial analysis |
| JEL: | C23 Q51 Q57 R20 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp728&r=env |
| By: | Robert Marschinski (MCC, PIK, TU-Berlin); Philippe Quirion (CNRS, CIRED, MCC) |
| Abstract: | We study the performance under uncertainty of three renewable energy policy instruments: Tradable Renewable Quota (TRQ), Feed-In-Tariff (FIT), and Feed-In-Premium (FIP). We develop a stylized model of the electricity market, where renewables are characterized by a positive learning externality, which the regulator aims to internalize. Assuming shocks on the fossil-based electricity supply, renewables supply, or on total electricity demand, we analytically derive the conditions determining the instruments’ relative welfare ranking. Although we generally confirm the key role of the slopes of marginal benefits and costs associated with the policy, the specific ranking depends on which type of uncertainty is considered, and whether shocks are permanent or transitory. However, a high learning rate generally favours the FIT, while TRQ is mostly dominated by the other two instruments. These results are confirmed in a numerical application to the US electricity market, in which the FIP emerges as the most and TRQ as the least robust overall choice. |
| Keywords: | Feed-in Premium, Feed-in Tariff, Renewable Energy Policy, Renewable Portfolio Standard, Tradable Renewable Quota, Uncertainty |
| JEL: | Q4 Q48 |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2014.99&r=env |
| By: | Kölle, Felix; Gächter, Simon; Quercia, Simone |
| Abstract: | We study the nature of cooperation in the provision of public goods (a "Give" game) and the appropriation of a common resource (a "Take" game). We introduce the "abc-framework" to analyze how cooperative attitudes and beliefs determine cooperation. Our experimental results establish that Give and Take dilemmas are different games even under equivalent incentives. We find striking differences in attitudes: people are substantially less likely to cooperate conditionally in Take than Give. Our experiments and simulations show that attitudes and beliefs, rather than "framing effects", can explain the variation of cooperation observed in the literature. Our results also suggest that cooperation is harder in commons problems than in the provision of public goods. |
| JEL: | C92 H41 D03 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc14:100417&r=env |
| By: | Jeong-Yoo Kim (Department of Economics, Kyung Hee University, Korea); Nathan Berg (Department of Economics, University of Otago, New Zealand) |
| Abstract: | This paper presents a model of quantity regulation aimed at mitigating externalities from over-use of a commons: for example, restrictions on use of automobiles, fisheries, computer networks and electronic stock quotation systems with high-frequency traders. The model provides a counter-intuitive answer to the question of what happens when quantity restrictions are legislated but enforcement is imperfect. If the probability of enforcement depends on both violation rates and enforcement expenditures, then equilibrium congestion can become worse as the quantity restriction becomes more severe. Stricter regulation causes more agents to violate the regulation which consequently reduces the probability of detection. Aggregate payoffs respond nonmonotonically to stricter regulatory rules. We find an interior near-optimal solution which is neither too permissive nor too strict. We show, however, that this near-optimal quantity regulation falls short of achieving socially optimal levels of use. Moreover, socially optimal levels of use can never be achieved in the sense that there exist some agents who rationally choose to violate the regulation if the regulator sets the restricted activity level at the socially optimal level. We also discuss optimal enforcement. |
| Keywords: | congestion, emissions cap, regulation standard, tragedy of the commons |
| JEL: | K42 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:otg:wpaper:1406&r=env |
| By: | Ankinée Kirakozian (University of Nice Sophia Antipolis; GREDEG CNRS) |
| Abstract: | This paper provides a review of economic studies that analyse the use of multiple policies to cope with waste management problems. In this paper, we discuss the factors that influence selective sorting behaviour and the most appropriate policies for their promotion. The evolution of regulation shows that few constraints are placed on producers' behaviour and suggests that consumers will become strategic actors to achieve regulatory objectives. Our survey shows, through various analysed works, the originality of waste as an environmental problem to regulate. This traditional approach that decisions respond to rational behaviour, particularly cost savings, has its limits. Although not all public policies seem justified, we argue that specific policies for promoting recycling may be required, preferably based on the provision of information to consumers or on behavioural instruments. Indeed, personal factors specific to each individual – such as emotions and the influence of social interaction – should be taken into account in the development of public policies. For each rationale, the relevant literature is presented. Based on the review, avenues for future research are identified. |
| Keywords: | Household recycling, Waste, Behavioral economics, Public Policies |
| JEL: | Q53 Q58 D03 D04 D12 |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2015-09&r=env |
| By: | Pandia, Olimpia; Saracin, Ion; Bogza, Ion |
| Abstract: | In the modern society of today, consuming natural products is not a hobby anymore and it is a necessity for us regarding health. The first factors of disease are owed to unhealthy food and we cannot have a healthy food and a healthy organism if we do not remove from our food system the negative effects possessed by unhealthy food, even if it is not the cheapest option. From the products consumed by people, a very important role for producing the necessary energy for the organism is given to vegetables. Thus, we aimed the study of using decoctions obtained from the Aristolochia Clematitis plants which can be found in the spontaneous flora of Romania, unpretentious regarding the soil and which can combat one of the most frequent pests met in cabbage cultures: cabbage aphis (Brevicoryne brassicae L.), cabbage fly (Delia brassicae), cabbage butterfly (Pieris brassicae). The elimination of contact insecticides and chemical substances and obtaining healthier products are several purposes by using these methods. The obtained decoctions were made by combining three types of plant mixes in order to identify which component part is richer in aristolochic acid and which decoction gives better results for the combat of insects and to make a better comparison between them related to obtained results. There were taken soil samples from the six cultivars between planting cabbage seedlings for a better documentation. After the observations made on the whole period, the best results were obtained at cultivars 1, 3, 5, 6 where cabbage plants were treated with decoction obtained from the roots and where the whole plant combined with soap solution was used, followed by cultivars 2 and 4 where there was not used Aristolochia Clematitis plants. Because the results obtained were satisfied without using contact insecticides, a larger investigation of these decoctions follows using only Aristolochia Clematitis plants or in combinations with other plants which have very good results for ecological control of diseases and pests from vegetable cultures. |
| Keywords: | physiological balance, ecological products, decoction, aristolochic acid |
| JEL: | Q16 Q20 Q57 |
| Date: | 2014–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:61751&r=env |