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on Environmental Economics |
| By: | Cheung, Jimmy; Kragt, Marit; Burton, Michael |
| Abstract: | Several airlines in Australia have initiated voluntary carbon offset (VCO) programs, called 'Fly Carbon Neutral', to encourage their customers to offset the carbon emissions of their flight. A VCO scheme aims to 'neutralise' emissions from a particular activity, by compensating with carbon reduction projects in another sector. As well as carbon sequestration, these activities often bring secondary benefits such as wildlife protection. There are currently few studies about the awareness and willingness to pay to offset carbon emission from flying. This paper conducted a choice experiment study to address this knowledge gap, by estimating Australian air travellers' willingness to pay for different attributes of carbon offset projects. Analyses reveal that values for carbon offset projects depend on respondent's perceptions of the importance of the aviation industry's contribution to the global carbon emissions, membership of environmental organisation, education level, income and their age. Results show that the majority of respondents preferred to not buy an offset. Of those respondents willing to buy an offset, most preferred renewable energy projects located in their own state over reforestation or forest protection projects in other states or overseas. The results will provide a better understanding of air travellers' preference, thus to improve future carbon offset policies making. |
| Keywords: | Carbon offsets, Aviation industry, Willingness to pay, Choice experiments, Choice modelling, Australia, Environmental Economics and Policy, Q51, Q57, |
| Date: | 2015–03–05 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uwauwp:199231&r=env |
| By: | Daniel Nachtigall (Freie Universitaet Berlin); Dirk Ruebbelke (Technische Universitaet Bergakademie Freiberg, Lehrstuhl fuer Allgemeine Volkswirtschaftslehre, insbesondere Rohstoffokonomik) |
| Abstract: | The green paradox conveys the idea that climate policies may have unintended side effects when taking into account the reaction of fossil fuel suppliers. In particular, carbon taxes that will be implemented in the future induce resource owners to extract more rapidly which increases present carbon dioxide emissions and accelerates global warming. Our results suggest that future carbon taxes may even decrease present emissions if resource owners face increasing marginal extraction costs and if there is a clean energy source that is a perfect substitute and exhibits learning-by-doing (LBD). If the marginal extraction cost curve is sufficiently flat, resource owners respond to a future carbon tax with lowering total extraction and only slightly increase present extraction. Moreover, taxation leads to higher energy prices which induces the renewable energy firms to increase output not only in the future, but also in the present because of the anticipated benefits from LBD. This crowds out energy from the combustion of fossil fuels and may outweigh the initial increase in present extraction, leading to less emissions in the present. Creation Date: 2014 |
| Keywords: | climate change, exhaustible resources, learning-by-doing, green paradox |
| JEL: | Q38 Q54 Q28 H23 |
| URL: | http://d.repec.org/n?u=RePEc:bdp:wpaper:2014002&r=env |
| By: | Coria, Jessica (Department of Economics. School of Business, Economics and Law. University of Gothenburg); Jaraite, Jurate (CERE) |
| Abstract: | In this paper we empirically compare the transaction costs from monitoring, reporting and verification (MRV) of two environmental regulations directed to cost-efficiently reduce greenhouse gas emissions: a carbon dioxide (CO2) tax and a tradable emissions system. We do this in the case of Sweden, where a set of firms are covered by both types of regulations, i.e., the Swedish CO2 tax and the European Union’s Emissions Trading System (EU ETS). This provides us with an excellent case study as it allows us to disentangle the costs of each regulation from other firm-specific variables that might affect the overall cost of MRV procedures. Our results indicate that the MRV costs of CO2 taxation do not depend on firms’ emissions, while they do in the case of the EU ETS. For firms of equivalent emissions’ size, the MRV costs are lower for CO2 taxation than for the EU ETS, which confirms the general view that regulating emissions upstream by means of a CO2 tax yields lower transaction costs vis-á-vis downstream regulation by means of emission trading. |
| Keywords: | Carbon dioxide emissions; Carbon tax; Emissions Trading; EU ETS; Firm-level data; Sweden |
| JEL: | D23 H23 Q52 Q58 |
| Date: | 2015–02–23 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:slucer:2015_002&r=env |
| By: | Brännlund, Runar (CERE); Karimu, Amin (CERE) |
| Abstract: | A large body of literature explores convergence in environmental performance (EP) using a simple measure of the percentage change of per capita CO2 as dependent variable and the level of per capita CO2 and GDP as explanatory variables. As such it conforms to the standard convergence literature in the economic growth literature. This study differs from these studies by constructing a measure based on production theory, where production processes explicitly results in the production of two outputs; a good output (GDP) and a bad output (CO2). Based on this we derive an EP index that can be expressed as the ratio of the inverse of the change of the emission intensity. We use the derived EP index to test the beta-convergence hypothesis for a panel of 94 countries. The results reveal strong evidence in support of beta-convergence in environmental, or carbon, performance. Moreover we find evidence of heterogeneity between groups of countries in line with the concept of “club” convergence and also heterogeneity between countries within country groups, especially for the high-income group. Additionally, we find evidence of a negative relation between environmental performance and fossil fuel share both at the global level as well as within sub-samples, which tend to vary with capital intensity. As such the results conform to the results from studies of the dynamics of per capita emissions. These results are therefore very informative and can help in both regional and international negotiations regarding burden sharing of global CO2 emissions. The results also suggest a balanced policy mix between efficiency and conservation policies in order to promote good environmental performance. |
| Keywords: | Convergence; Environmental Performance; Fossil fuel; Kyoto Protocol; Spillovers |
| JEL: | Q20 Q28 Q38 |
| Date: | 2015–02–18 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:slucer:2014_015&r=env |
| By: | Hansen, LeRoy; Hellerstein, Daniel; Ribaudo, Marc; Williamson, James; Nulph, David; Loesch, Charles; Crumpton, William |
| Abstract: | USDA has spent more than $4.2 billion on wetland restoration and protection over the last two decades. One challenge in allocating these funds is the lack of information on variations in wetland benefits and costs across the Nation. This report discusses the biophysical impacts of new wetlands for eight benefit categories: duck hunting, carbon sequestration, flood protection, nitrogen removal, species protection, open space, sediment removal, and groundwater recharge, as well as the value of these impacts for some categories. In addition, it presents county-level estimates of the costs of restoring and preserving wetlands for some parts of the United States. Although the estimates range in precision and are not comprehensive, they call attention to some areas where the benefits of new wetlands are likely to exceed costs or perhaps may be insignificant. For example, the benefits of restoring and preserving wetlands near the Missouri River in central North and South Dakota are likely to exceed costs. Findings underscore the need for additional information that may increase the number, accuracy, and spatial resolution of wetland benefit estimates. |
| Keywords: | Wetland conservation, ecosystem benefits, environmental economics, environmental targeting, nonmarket benefits, values of wetland ecosystems, Environmental Economics and Policy, Land Economics/Use, Resource /Energy Economics and Policy, |
| Date: | 2015–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uersrr:199283&r=env |
| By: | Nordén, Anna (Department of Economics, School of Business, Economics and Law, Göteborg University); Coria, Jessica (Department of Economics, School of Business, Economics and Law, Göteborg University); Jönsson, Anna Maria (Lund University); Lagergren, Fredrik (Lund University); Lehsten, Veiko (Lund University) |
| Abstract: | A great deal of biodiversity can be found in private forests, and protecting it requires taking into consideration the preferences of key stakeholders. In this study, we examine and compare the valuation of forest attributes across the general public, private non-industrial forest owners and forest officials in Sweden by conducting a choice experiment. Our results indicate that citizens have a positive valuation of biodiversity protection. Moreover, their valuation is statistically higher than those of forest owners, implying that there is room for compensation. Interestingly, our results suggest that both forest owners and forest officials have a strong orientation towards production, with higher valuation than the general public of the common management practice of similar age and clear felling. Even though the Swedish Forestry Act regards production and environmental goals as equally important, we find that forest officials prefer management practices that promote production rather than biodiversity protection. |
| Keywords: | biodiversity; choice experiment; forest; preference divergence |
| JEL: | D61 Q23 Q51 Q58 |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0616&r=env |
| By: | Aberman, Noora-Lisa; Ali, Snigdha; Behrman, Julia A.; Bryan, Elizabeth; Davis, Peter; Donnelly, Aliveen; Gathaara, Violet; Koné, Daouda; Nganga, Teresiah; Ngugi, Jane; Okoba, Barrack; Roncoli, Carla |
| Abstract: | Using a participatory rural appraisal approach, a series of qualitative studies were conducted in four countries facing negative impacts of climate change—Bangladesh, Ethiopia, Kenya and Mali—in order to determine men’s and women’s perceptions of climate change, adaptive approaches, and the degree to which assets and group participation play a role in adaptation strategies. Similarities were found across countries in terms of perceptions of climate change, impacts, and strategies for adaptation. Farmers and pastoralists, groups heavily dependent on natural resources, are starkly aware of and impacted by subtle climatic changes, and those with a stronger asset base were better able to adapt to changes and shocks. |
| Keywords: | Gender, Women, Climate change, assets, rural areas, Smallholders, Risk, climate adaptation, environmental shocks, |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1412&r=env |
| By: | William Brock; Anastasios Xepapadeas |
| Abstract: | Human economies and ecosystems form a coupled system coevolving in time and space, since human economies use ecosystems services and at the same time affect ecosystems through their production and consumption activities. The study of the interactions between human economies and ecosystems is fundamental for the efficient use of natural resources and the protection of the environment. This necessitates the development and use of models capa- ble of tracing the main interactions, links and feedbacks. In developing this chapter, our objective was to focus on a segment of rapidly developing lit- erature on coupled ecological/economic models with an emphasis on climate change. The advantage of this approach is that it introduces the reader to a very important current research topic, but it also allows, by using climate as the reference ecosystem, the exploration of new modeling approaches which are relevant and useful for the modeling of other types of coupled ecologi- cal/economic systems. These include modeling of deep structural uncertainty by using robust control methods, exploring modeling through cumulative car- bon budgeting, studying spatial transport phenomena and spatial aspects in economic/ecological modelling. |
| Keywords: | Coupled ecological/economic models, climate change, deep uncertainty, robust control,cumulative carbon budgeting, energy balance climate models, spatial aspects in ecological/economic modeling. |
| JEL: | Q20 Q40 Q54 Q57 |
| Date: | 2015–03–05 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:1508&r=env |
| By: | Edward S. Barbier (Department of Economics & Finance, University of Wyoming); Mikołaj Czajkowski (Faculty of Economic Sciences, University of Warsaw); Nick Hanley (University of St Andrews, School of Geography and Sustainable Development) |
| Abstract: | This paper explores both theoretically and empirically whether or not the willingness to pay (WTP) for pollution control varies with income. Our model indicates that the income elasticity of the marginal WTP for pollution reduction is only constant under very restrictive conditions, which are not necessary for an environmental Kuznets curve relationship between pollution and income. Our empirical analysis tests the null hypothesis that the elasticity of the WTP for pollution control with respect to income is constant, employing a multi-country contingent valuation study of eutrophication reduction in the Baltic Sea. Our findings reject this hypothesis, and estimate an income elasticity of the WTP for eutrophication control of 0.1 - 0.2 for low-income respondents and 0.6 - 0.7 for high-income respondents. Thus, our empirical results suggest that the elasticity is not constant and always less than one. |
| Keywords: | Baltic Sea, benefit transfer, environmental Kuznets curve, eutrophication, income elasticity of willingness to pay, non-market valuation |
| JEL: | Q51 Q53 Q56 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:war:wpaper:2015-07&r=env |
| By: | Severin Borenstein; James Bushnell; Frank A. Wolak; Matthew Zaragoza-Watkins |
| Abstract: | We analyze the demand for emissions allowances and the supply of allowances and abatement opportunities in California's 2013-2020 cap and trade market for greenhouse gases (GHG). We estimate a cointegrated vector autoregression for the main drivers of greenhouse gas emissions using annual data from 1990 to 2011. We use these estimates to forecast businss-as-usual (BAU) emissions during California's program and the impact of the state's other GHG reduction programs. We then consider additional price-responsive and price-inelastic activities that will affect the supply/demand balance in the allowance market. We show that there is significant uncertainty in the BAU emissions levels due to uncertainty in economic growth and other factors. Our analysis also suggests that most of the planned abatement will not be very sensitive to the price of allowances, creating a steep abatement supply curve. The combination of BAU emissions uncertainty and inelastic abatement supply implies a high probability that the price of allowances in California will either be at the price floor, or high enough to trigger a safety valve mechanism called the Allowance Price Containment Reserve (APCR). We estimate a low probability that the price would end up in an intermediate range between the price floor and the APCR. The analysis suggests that cap-and-trade markets, as they have been established in California, the EU and elsewhere may be more likely to experience price volatility and extreme low or high prices than is generally recognized. |
| JEL: | Q5 Q52 Q54 |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20999&r=env |
| By: | Brännlund, Runar (CERE); Karimu, Amin (CERE); Söderholm, Patrik (Department of Business Administration, Technology and Social Sciences Luleå University of technology) |
| Abstract: | This paper examines convergence of per capita carbon dioxide (CO2) emission for a panel of 124 countries taking into account the impact of the quality of government institutions. The analysis builds on both parametric and nonparametric panel data techniques, and we examine the beta-convergence hypothesis in a neoclassical growth model setting with institutional quality as one of the independent variables. The results reveal evidence in support of beta-convergence of per capita CO2 emissions for the global sample, and for the sub-samples comprising OECD and non-OECD countries, respectively. The results indicate heterogeneity in beta-convergence, which tends to vary with the level of the initial per capita CO2 emissions. We also find evidence of a negative direct effect of institutional quality on growth in per capita CO2 emissions. However, institutional quality also promotes economic growth, thus generating a positive indirect effect on emissions growth. Overall our empirical results suggest a positive total effect of institutions on growth in per capita CO2 emission based on the global sample. Finally, we find some evidence of bias in the parametric approach, in particular in the case of the estimates for the convergence parameter at either end of the distribution. |
| Keywords: | Carbon dioxide; Convergence; Institutions; Nonparametric approach |
| JEL: | O43 Q54 Q56 |
| Date: | 2014–10–10 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:slucer:2014_012&r=env |
| By: | Ibanez, Marcela; Blackman, Allen (Resources for the Future) |
| Abstract: | According to advocates, eco-certification can improve developing country farmers’ environmental and economic performance. However, these notional benefits can be undercut by self-selection: the tendency of relatively wealthy farmers already meeting eco-certification standards to disproportionately participate. Empirical evidence on this matter is scarce. Using original farm-level survey data along with matching and difference-in-differences matching models, we analyze the producer-level effects of organic coffee certification in southeast Colombia. We find that certification improves coffee growers’ environmental performance. It significantly reduces sewage disposal in the fields and increases the adoption of organic fertilizer. However, we are not able to discern economic benefits. The return on certified production is not significantly different from that on conventional production. |
| Keywords: | organic certification, coffee, Colombia, difference-in-differences matching |
| JEL: | Q13 Q20 O13 Q56 |
| Date: | 2015–02–05 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-15-02&r=env |
| By: | Lindmark, Magnus (CERE); Acar, Sevil (Istanbul Kemerburgaz University Department of Economics) |
| Abstract: | This paper examines convergence of carbon dioxide (CO2) emissions caused by oil combustion for a panel of 86 countries considering the importance of analyzing several sub-periods separately. Also, the investigation points at the necessity of choosing a restricted global sample, which takes into account that, for instance, eastern bloc countries reacted differently to increasing world market crude prices than the Western economies. The analysis builds on examining the beta-convergence hypothesis in a neoclassical growth model setting with additional control variables such as combustion of solid fuels. The results reveal evidence in support of beta-convergence of CO2 emissions intensity due to oil combustion for the sub-periods 1973-1979 and 1979-1991, while no evidence for convergence was found for the post-1991 period. This is true both for the restricted global sample and the sub-samples comprised of western OECD economies. One possible interpretation of the results is that international carbon taxes or permit trading schemes may first be introduced for oil only. |
| Keywords: | Carbon dioxide; Oil; Convergence; Carbon convergence; Energy history |
| JEL: | N50 |
| Date: | 2015–01–15 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:slucer:2015_001&r=env |
| By: | Gengyang Tu (Laboratoire d'Economie Forestière, INRA - AgroParisTech); Jens Abildtrup (Laboratoire d'Economie Forestière, INRA - AgroParisTech); Serge Garcia (Laboratoire d'Economie Forestière, INRA - AgroParisTech) |
| Abstract: | This paper assesses the value of urban green spaces, specifically peri-urban forests and their potential substitutes, for the local population on the basis of their residential choice. We applied a choice experiment (CE) that focuses on trade-offs between private housing characteristics and the environmental aspects of neighborhood. Individual willingness to pay (WTP) is estimated from a latent class model and a mixed logit model along with a WTP space approach. Our results show that green spaces provide both direct use value (recreation) and indirect use value (scenic views). We find that peri-urban forests and parks are not substitutes. However, ownership of a private garden reduces the WTP to live closer to an urban park. |
| Keywords: | Choice experiment, residential location, urban green spaces, latent class model, mixed logit model, willingness-to pay space |
| JEL: | Q26 Q51 C5 |
| Date: | 2015–02 |
| URL: | http://d.repec.org/n?u=RePEc:lef:wpaper:2015-02&r=env |
| By: | Heindl, Peter; Löschel, Andreas |
| Abstract: | This paper reviews the literature on distributional effects of energy and carbon taxation with focus on microsimulation models. Most studies find that direct energy and carbon taxation tends to be regressive. Regressive effects occur mostly with respect to taxation of electricity or space heating. Taxation of transportation fuels show less regressive, neutral, or even progressive effects. Adequate revenue recycling often allows for neutralisation or full elimination of regressive effects so that energy and carbon tax reforms can be progressive. Some studies find evidence for the existence of a double dividend. There seems to be an efficiency-equity trade-off in revenue recycling, i.e. whether to foster growth or to assist low-income households. While a large number of studies on advanced economies are available, there clearly is a gap with regard to evidence for developing countries. Another gap relates to the lack of documentation on the challenges of incorporating macroeconomic models and long-term modelling perspectives in microsimulation. Both aspects can be of great importance with respect to the design of green growth policies. Thoughtful incorporation of social considerations, including aspects of poverty in modelling approaches could enhance the existing instruments of exante policy assessments since poverty is a tangible concept which is well-known, understandable, and openly observable for citizens and policy makers. |
| Keywords: | Distributional Effects,Environmental Tax Reform,Green Growth,Energy Poverty,Microsimulation |
| JEL: | H23 H31 Q54 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cawmdp:81&r=env |
| By: | Brännlund, Runar (CERE); Lundgren, Tommy (CERE); Söderholm, Patrik (Economics Unit, Luleå University of Technology) |
| Abstract: | The overall objective of the paper is to analyze convergence of CO2 emission intensity across manufacturing sectors in Sweden. Our approach differs from previous work on carbon convergence in that it employs a theoretical framework to construct a CO2 performance index, which explicitly takes into account that industrial firms produce good as well as bad outputs. This index is then used as the dependent variable in a growth-type regression equation. We employ a data set covering 14 industrial sectors over the time period 1990-2008. The results suggest the presence of conditional beta-convergence in CO2 performance among the industrial sectors in Sweden. Moreover, the speed of convergence varies significantly in the sense that the higher the capital intensity is, the lower is the convergence rate to the different steady states. This reflects the importance of – and in part the costs associated with – capital turnover to achieve a transition towards lower CO2 emission paths. |
| Keywords: | convergence; carbon dioxide emission intensity; industry; Sweden |
| JEL: | Q30 |
| Date: | 2014–09–12 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:slucer:2014_010&r=env |
| By: | Geijer, Erik (CERE) |
| Abstract: | Single measures that are implemented in order to reach some goal often have effects on other goals as well. In this paper, we look at the Swedish environmental goal Zero eutrophication, and the two interconnected sub goals of nitrogen and phosphorus reduction. Measures that are taken in order to reduce nitrogen often have an effect on phosphorus emissions, and vice versa. Thus, the cost efficient set of measures has to be identified by analyzing how to reach both goals simultaneously. The paper maps the set of possible outcomes that a policy maker could choose from, and discuss how that choice could be informed by an environmental index (EI). The paper also discusses the benefits of, a priori, formulating the eutrophication goal in terms of an EI instead of, as today, in terms of separate nitrogen and phosphorus reduction goals. Finally, we suggest an eutrophication index and discuss how the results in the paper, based on very crude data, nevertheless could have a practical use. |
| Keywords: | Zero eutrophication; nitrogen reduction; phosphorus reduction; multiple goals; environmental index |
| JEL: | Q50 |
| Date: | 2014–10–10 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:slucer:2014_011&r=env |
| By: | Vladimir Udalov (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW)) |
| Abstract: | This paper investigates an intergenerational conflict arising from renewable energy support (RES). Using a simple polito-economic overlapping generations (OLG) model, it can be shown that old individuals unambiguously lose from renewable energy support and therefore vote for its minimum level. In contrast, young individuals benefit from positive environmental and consumption effects and, therefore, vote for a higher level of renewable energy support. The voting outcome is determined through a political process, whereby political parties converge to platforms that maximize the aggregate welfare of the electorate. Depending on the size of the exogenous parameters, the level of RES varies between the voting preferences of younger and older individuals. As a result, this model offers a good starting point for possible medium to long-term policy recommendations in order to increase the accepted level of RES. |
| Keywords: | overlapping generations, generational conflict, environmental policy, renewable energy, voting |
| JEL: | Q54 Q29 D60 D90 H23 D72 |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:bwu:eiiwdp:disbei202&r=env |
| By: | Ulrike Will (Faculty of Business Administration and Economics, European University Viadrina, Frankfurt (Oder)) |
| Abstract: | Environmental protection policies become relevant in WTO law if they lead to extrajurisdictional effects. These effects might have different benchmarks, and may restrict free trade rules or competing policy goals. Although both forms of extrajurisdictional effects occur in WTO case law, this differentiation extends further than has been previously discussed. This paper refers to Article XX GATT and the Articles 2.1 and 2.2 TBT. Despite some vague legal terms leading to large discretions, the necessity test respectively the ‘relating to’ requirements and the exclusion of disguised discrimination are capable of resolving conflicts between environmental measures and free trade rules conclusively. However, if the benchmark is a competing environmental policy measure, both measures can refer to the same rule. If both environmental measures then fulfil the balancing requirements, but the realization of both regulatory goals is not possible, the balancing process results in stalemate. This paper considers two approaches to resolving such a collision: the comparison of the intensity of extrajurisdictional effects, and the re-evaluation of the regulatory goal. It is asserted that both approaches contain shortcomings. |
| Keywords: | Extrajurisdictional Effects, Extraterritorial Jurisdiction, Environment, Trade, Balancing, Regulatory Autonomy |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:euv:dpaper:20&r=env |
| By: | Daisy J. Huang; Charles Ka Yui Leung; Baozhi Qu |
| Abstract: | Based on Chinese city-level data from 1999 to 2012 and controlling for geological, environmental, and social diversity, this study suggests that credit plays a significant role in driving up house prices after the Great Recession, whereas property prices only influence bank lending before 2008. Local amenities such as higher education, green infrastructure, healthcare, and climate also positively affect house prices. Moreover, the impacts of bank loans on housing prices tend to be related to the level of amenities, suggesting an integrated approach (i.e. combining macroeconomic and urban economic variables) of housing market for the future research. |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:dpr:wpaper:0928&r=env |
| By: | Zhang, Wei; Kato, Edward; Bhandary, Prapti; Nkonya, Ephraim M.; Ibrahim, Hassan Ishaq; Agbonlahor, Mure Uhunamure; Ibrahim, Hussaini Yusu |
| Abstract: | This research has been undertaken to improve our understanding of stakeholders’ knowledge and perception about ecosystem services (ES), which provides a valuable means of gaining insight into the opportunities and constraints that face ES management in a multiuser landscape. Land use preferences are influenced by a variety of motives, attitudes, and values intrinsic to every individual’s decisionmaking. Knowledge can affect attitudes and behavioral intentions, and a positive attitude toward the environment has been found to predict conservation practices. |
| Keywords: | Ecosystem services, rural areas, Communities, Land use, Forest, awareness, perception, knowledge, |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1418&r=env |
| By: | Sato, Masayuki; Phim, Runsinarith; Managi, Shunsuke |
| Abstract: | This paper investigates the effect of shadow price regarding weak sustainability indicators based on the genuine savings indicator. We analyse the forest resources considering positive externalities of natural capital, as the approximation from market rent alone would under-estimate the true shadow price. On the basis of previous valuation results of forest resources, we estimate the non-market value and shadow price of forest, which are further used in deriving sustainability indicators measurement. The results show the importance of shadow pricing of natural capital to reflect weak sustainability indicators. Re-calculations of the sustainability indicator provide evidences suggesting that existing weak sustainability indicators tend to over-estimate sustainability, especially among countries with a higher dependence on forest-resource exploitation. |
| Keywords: | Sustainable Development; Inclusive Wealth Index; Natural Capital; Shadow Price |
| JEL: | Q23 Q51 Q56 Q57 |
| Date: | 2015–02–16 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:62612&r=env |
| By: | Aberman, Noora-Lisa; Birner, Regina; Haglund, Eric; Ngigi, Marther; Ali, Snigdha; Okoba, Barrack; Koné, Daouda; Alemu, Takei |
| Abstract: | In the context of increasing vulnerability to climate change for people dependent on natural resources for their livelihoods, the International Food Policy Research Institute and partner organizations in Ethiopia, Kenya, Mali, and Bangladesh undertook a project broadly aiming to create knowledge that will help policymakers and development agencies to strengthen the capacity of male and female smallholder farmers and livestock keepers to manage climate-related risks. This study—one component of the project—examines the networks and power dynamics of stakeholders in the four target countries so as to (1) identify potential partners in the research process, (2) find out which organizations could make use of the research findings in their activities, and (3) inform the communication and outreach strategy of the research project. This paper describes the network structures for climate change policy, the actors in the networks with high centrality and influence scores, and the implications of these results for outreach and dissemination. |
| Keywords: | Climate change, Policies, Social networks, stakeholders, Smallholders, Gender, Women, Livestock, Agricultural research, Agricultural policies, stakeholder mapping, social network analysis, policy impact, climate adaptation, |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1408&r=env |
| By: | Zaporozhets, Vera |
| Abstract: | I study the distribution of voting power between different decision-makers in French river basin committees over the period 1987-2007. To do so, in the first part of the paper, I apply different power measures traditionally used in the literature as well as some other ones lesser known in this context. I compare then the predictions of several indices for the relative power of different decision-makers in different voting situations. In the second part, I describe the methodology to design an optimal decision rule. A simple computational exercise based on this methodology suggests that the residential water users in Adour-Garonne river basin were under represented in the river basin committee during 1989-2006. |
| Keywords: | environmental management, water policy, collective decision-making, voting, power indices, optimal decision rule |
| Date: | 2015–02 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:29079&r=env |
| By: | Heyen, Daniel |
| Abstract: | Technological innovation is a key strategy for tackling environmental problems. The required R&D expenditures however are substantial and fall on self-interested countries. Thus, the prospects of successful innovation critically depend on innovation incentives. This paper focuses on a specific mechanism for strategic distortions in this R&D game. In this mechanism, the outlook of future conflicts surrounding technology deployment directly impacts on the willingness to undertake R&D. Apart from free-riding, a different deployment conflict with distortive effects on innovation may occur: Low deployment costs and heterogeneous preferences might give rise to 'free-driving'. In this recently considered possibility (Weitzman 2012), the country with the highest preference for technology deployment, the free-driver, may dominate the deployment outcome to the detriment of others. The present paper develops a simple two stage model for analyzing how technology deployment conflicts, free-riding and free-driving, shape R&D incentives of two asymmetric countries. The framework gives rise to rich findings, underpinning the narrative that future deployment conflicts pull forward to the R&D stage. While the outlook of free-riding unambiguously weakens innovation incentives, the findings for free-driving are more complex, including the possibility of super-optimal R&D and incentives for counter-R&D. |
| Date: | 2015–03–02 |
| URL: | http://d.repec.org/n?u=RePEc:awi:wpaper:0584&r=env |
| By: | Ivanova, Daniela; Vasileva, Elka; Tipova, Nina; Stefanov, Stilian |
| Abstract: | The food industry has been seen as one of the most successful sectors in Bulgaria with potential to growth. At the same time agriculture and food industry have had large negative effect on the environment. For reduction of the potential harmful environmental impact caused by agricultural and food sector it is time to transform into a sustainable production. Certification schemes are one of the most common policy instruments used for promoting sustainable production and consumption. A total 90 producers in food sector were asked about motivation for certification, the challenges and outcomes of certification. The survey provides information on existing certification schemes (system certification and products certification) among companies in the food sector in Bulgaria. |
| Keywords: | sustainable production, certification, food industry, Bulgaria |
| JEL: | L1 L15 Z1 Z18 |
| Date: | 2013–11–21 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:62566&r=env |
| By: | Vasiliy Rud’ (Saint-Petersburg Polytechnical University); Serguey Trukhachev (Department of Economics, Lomonosov Moscow State University) |
| Abstract: | Research, the results of which will be discussed in the present report were obtained in the framework of the Commission under the President of the Russian Federation for Modernization and Technological Development of Russia's Economy. Key issues affecting the management of the flow of all types of waste in Russia are: A huge number of unsorted household waste and unprocessed Extremely high yield landfill business and its criminal Lack of waste treatment business Possibility of selling the energy received from the recycling can not be considered as an incentive for the development of business Building regulations do not provide for the installation of systems for separate collection of household waste Public services and private investors are not able to effectively solve the problem of eliminating the effects of pollution of waste production and consumption with the formation of an efficient, cost-effective and environmentally sound waste management industry. It is necessary to pay more attention to not direct support projects on waste recycling, and introduce restrictive measures for the development of businesses not harmless to the garbage. We need to develop a "roadmap" of joint actions of government and business to create a national market for emissions trading of greenhouse gas emissions on the basis of voluntary commitments by companies to reduce them. As a result of the work done has been formulated for a number of assignments signed by the President of the Russian Federation . |
| Keywords: | municipal solid management, public-private partnership, institutionalism, project management. |
| JEL: | D00 D02 |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:upa:wpaper:0017&r=env |
| By: | Swallow, Kimberly A.; Swallow, Brent M. |
| Abstract: | Bioeconomic models can provide powerful insights into the interactions between people and the natural ecosystems on which they depend. For example, bioeconomic models of fisheries have long been used to provide early warnings about the sustainability of harvest levels or the impacts of new technologies. Less progress has been made in explicitly incorporating inter-agent interactions and institutions in bioeconomic models. This paper offers guidance to future bioeconomic modelling efforts through a review of the ways that institutions are or could be explicitly integrated into bioeconomic models. |
| Keywords: | Governance, Developing countries, Mathematical models, intensification, systematic reviews, institutional change, social-ecological systems, sustainable intensification, |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1420&r=env |
| By: | Nicolas Querou (Laboratoire Montpelliérain d'Economie Théorique et Appliquée, INRA; Centre National de la Recherche Scientifique); Mabel Tidball (Laboratoire Montpelliérain d'Economie Théorique et Appliquée, INRA) |
| Abstract: | We consider a model of non-renewable resource extraction where players do not know their opponents’ utility functions and form conjectures on the behavior of others. Two forms of beliefs are introduced, one based on the state of the resource, the other on this state and on the others’ strategy (their consumption). We focus on consistent equilibria, where beliefs must be consistent with observed past plays. Closed form expressions of the optimal policies are derived. Comparisons are made with the full information benchmark case. With strategy and state based beliefs, the agents may behave more (respectively, less) aggressively than in the non-cooperative benchmark depending on the initial consumption level. When initial consumption is low, the optimal consumption path lies below that of the cooperative benchmark. We conclude the analysis by discussing the impact of public policies on the agents’ choice of consumption patterns, and the robustness of the results for the case of renewable resources. |
| Keywords: | conjectural variations, dynamic game, dynamic resource management, non probabilistic beliefs, théorie des jeuxgestion des ressources naturelles, ressource non renouvelable, modélisation économique |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:inr:wpaper:174806&r=env |
| By: | Ma, Chunbo; Polyakov, Maksym; Pandit, Ram |
| Abstract: | Using a large sample of property sales data and high-resolution aerial maps, this study provides the first empirical estimate of the price premium of properties with photovoltaic (PV) panels in Australia. We use three model specifications to control for spatial heterogeneity and correlation as well as price dynamics over time. Results from hedonic models, repeated sales models and hybrid models have all shown strong evidence that PV panels contribute a 2.34 to 4.12 percent premium to properties prices. This suggests that PV investments are, on average, over-capitalized into property prices during our sample period, which we argue is largely a reflection of changing policy parameters regarding feed-in tariffs. Greater premium is found in localities with a larger share of votes for the Green Party and Australian Labor Party in 2008 State Election and votes for no daylight saving in 2009 State Referendum, registered Prius hybrid vehicles and college graduates and postgraduates. The results have significant implications for property owners, builders, financial institutions, PV retailers, and policy makers. |
| Keywords: | Hedonic, Repeated Sales, Solar Panels, Photovoltaic, Environmental Economics and Policy, Resource /Energy Economics and Policy, O18, Q42, R21, |
| Date: | 2015–03–05 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uwauwp:199230&r=env |
| By: | Gawel, Erik |
| Abstract: | Der Aufsatz fasst die Ergebnisse einer Studie für das Umweltbundesamt zusammen. Diese Studie geht der Frage nach, welchen Beitrag die bundesdeutsche Abwasserabgabe im Rahmen einer gezielten Minderung der Gewässerbelastung durch Mikroverunreinigungen (MV) im Wege einer Aufrüstung ausgewählter öffentlicher Abwasserbehandlungsanlagen der Größenklasse 5 leisten kann. Die Studie zeigt, dass eine aus dem Aufkommen der Abwasserabgabe gespeiste Förderpolitik mit Selbstbehalt unter Berücksichtigung eines abgabebezogenen Selbstfinanzierungseffektes der MV-Elimination die beste instrumentelle Kosten-Nutzen-Relation aufweist. Es wird vorgeschlagen, 75 % der jährlichen Investitionskosten (Abschreibungen, Zinsen) für einen Zeitraum von 15 Jahren bei GK5-Kläranlagen zu bezuschussen. Diese Förderung wäre zu flankieren durch eine Lenkungsertüchtigung der Abwasserabgabe mit Aufkommenserhöhung, um andere Finanzierungszwecke aus dem Aufkommen und den eigentlichen Lenkungszweck der Abgabe nicht zu gefährden. Die Abwasserabgabe würde so insgesamt lenkungspolitisch ertüchtigt und erbrächte dadurch ein höheres Aufkommen, das für eine Förderung eingesetzt werden kann ("Leipziger Modell"). Die Belastungswirkungen des Modells für Abgabeschuldner und Gebührenzahler werden beziffert und als verhältnismäßig bewertet. Für die Funktionalität der Abwasserabgabe ist die Verzahnung mit ordnungsrechtlichen Anforderungen an eine MV-Elimination essenziell. Diese könnten emissionsorientiert flächendeckend nach dem Stand der Technik in der Abwasserverordnung niedergelegt oder aber bewirtschaftungsorientiert gemäß WRRL je nach Gewässersituation formuliert werden. |
| Abstract: | The paper summarises the findings of a study conducted on behalf of the German Federal Environment Agency. This study examines what contribution the German Federal Waste Water Charge can make to a targeted reduction of the contamination of surface waters by micropollutants (MPs) through the upgrading of selected class 5 public waste water treatment plants with quarternary treatment. The study shows that a support policy with deductibles financed through revenues from the waste water charge - taking into account the charge-based self-financing effect of MP elimination - demonstrates the best instrumental cost-benefit ratio. The authors propose subsidising 75% percent of the annual investment costs (amortisation, interest) for class 5 waste water plants for a period of 15 years. The subsidy would need to be flanked by a strengthening of the steering function of the waste water charge with an increase in revenue to avoid putting the other funding targets of the revenue and the actual steering purpose of the charge in jeopardy. In that way the overall steering function of the waste water charge would be strengthened, thus yielding higher revenues which could be used to fund a support scheme for quarternary treatment (the "Leipzig Model"). The burden effects of the model for both waste water charge payers (direct dischargers) and waste water fee payers (indirect dischargers) are estimated and evaluated as proportional. The functionality of the waste water charge within the Leipzig Model framework is crucially dependent on its interlinking with regulatory requirements for the elimination of MPs. These could be laid down in the Waste Water Ordinance as uniform, technology-based emissions standards or they could be formulated as ambient requirements under the WFD's programmes of measures according to local water status. |
| Keywords: | Mikroverunreinigungen,Abwasserabgabe,Abwasserbehandlungsanlagen,Abwassergebühren,Finanzierung,vierte Reinigungsstufe,Verursacherprinzip,Vorsorgeprinzip,Wasserrahmenrichtlinie,micropollutants,waste water charge,wastewater treatment plants,funding,quarternary sewage treatment,polluter-pays principle,precautionary principle,water framework directive |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ufzdps:42015&r=env |
| By: | Mahieu, Pierre-Alexandre (LEMNA); Donfouet, Hermann Pythagore Pierre (CREM); Kriström, Bengt (CERE) |
| Abstract: | Many countries are facing a dilemma over whether to extend the lives of their old reactors or make costly capital investments on Renewable Energy (RE). This paper explores the determinants of Willingness-To-Pay (WTP) for RE in France by means of a contingent valuation question that was included in a large web survey organized by the OECD. The main contribution of our paper is to test whether people living close to a reactor are sensitive to the age of the reactor. We find that the age of the reactor has a positive effect on WTP for RE. |
| Keywords: | Contingent valuation; nuclear power plant; renewable energy |
| JEL: | C82 I10 Q21 |
| Date: | 2014–10–13 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:slucer:2014_014&r=env |
| By: | Christopher Hansman; Jonas Hjort; Gianmarco León |
| Abstract: | Regulations that constrain firms' externalities in one dimension can distort incentives and worsen externalities in other dimensions. In Peru's industrial fishing sector, the world's largest, fishing boats catch anchovy that plants along the coast convert into fishmeal. Matching administrative, daily data on plant production, ground-level air quality data, hospital admissions records, and survey data on individual health outcomes, we first show that fishmeal production negatively affects adult and child health through air pollution emitted by plants. We then analyze the industry's response to a 2009 reform that split the Total Allowable Catch (TAC) into boat-specific, transferable quotas (ITQs) to preserve fish stocks and reduce overcapacity. As predicted by a two-sector model with heterogeneous plants, on average across locations, fishmeal production was spread out in time, for two reasons: (i) boats' incentive to \race" for fish was removed, and (ii) production fell in inefficient plants (and locations) and increased, in the time dimension, in efficient plants (and locations). The reform greatly exacerbated the industry's impact on health, causing a loss of about 1.4 million disability-adjusted life years. We show that the reason is that longer periods of moderate air pollution are worse for health than shorter periods of higher intensity exposure. Our findings demonstrate the risks of piecemeal regulatory design, and that the common policy trade-off between duration and intensity of pollution exposure can be critical for industry's impact on health. |
| Keywords: | industrial regulations, firms, externalities, air pollution, health, fishing, Peru, ITQs |
| JEL: | D2 L5 L7 O1 I1 Q5 |
| Date: | 2015–02 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:809&r=env |
| By: | Christopher Hansman; Jonas Hjort; Gianmarco León |
| Abstract: | Regulations that constrain firms' externalities in one dimension can distort incentives and worsen externalities in other dimensions. In Peru's industrial fishing sector, the world's largest, fishing boats catch anchovy that plants along the coast convert into fishmeal. Matching administrative, daily data on plant production, ground-level air quality data, hospital admissions records, and survey data on individual health outcomes, we first show that fishmeal production negatively affects adult and child health through air pollution emitted by plants. We then analyze the industry's response to a 2009 reform that split the Total Allowable Catch (TAC) into boat-specific, transferable quotas (ITQs) to preserve fish stocks and reduce overcapacity. As predicted by a two-sector model with heterogeneous plants, on average across locations, fishmeal production was spread out in time, for two reasons: (i) boats' incentive to "race" for fish was removed, and (ii) production fell in inefficient plants (and locations) and increased, in the time dimension, in efficient plants (and locations). The reform greatly exacerbated the industry's impact on health, causing a loss of about 1.4 million disability-adjusted life years. We show that the reason is that longer periods of moderate air pollution are worse for health than shorter periods of higher intensity exposure. Our findings demonstrate the risks of piecemeal regulatory design, and that the common policy trade-off between duration and intensity of pollution exposure can be critical for industry's impact on health. |
| Keywords: | Industrial regulations, firms, externalities, air pollution, health, fishing, Peru, ITQs |
| JEL: | D2 L5 L7 O1 I1 Q5 |
| Date: | 2015–02 |
| URL: | http://d.repec.org/n?u=RePEc:upf:upfgen:1469&r=env |
| By: | Arora, Anchal; Bansal, Sangeeta; Ward, Patrick S. |
| Abstract: | Abiotic stresses such as droughts and floods significantly constrain rice production in India. New stress-tolerant technologies have the potential to reduce yield variability and help insulate farmers from the risks posed by these hazards. This study aims to explore the potential adoption of these risk-reducing technologies. Using discrete choice experiments conducted in rural Odisha, we estimate farmers’ valuation for drought-tolerant and submergence-tolerant traits embodied in paddy cultivars. We find that farmers value both yield-increasing traits and variability-reducing traits. Interestingly, we find exceptionally high willingness to pay for short-duration varieties. We also attempt to capture heterogeneity in preferences. Our results show that farmers in both drought-prone and flood-prone regions value the reduction in yield variability offered by cultivars. |
| Keywords: | Droughts, abiotic stress, Flooding, Rice, yields, Risk, Seeds, Varieties, Tolerance, Drought tolerance, Flooding tolerance, submergence tolerance, discrete choice experiment, Willingness to pay, Odisha, |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1409&r=env |