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on Environmental Economics |
| By: | Uetake, Tetsuya; Sasaki, Hiroki |
| Abstract: | Promoting environmentally friendly farming products is crucial to meeting consumer demand. Although governments implement policy measures to improve the environmental performance of the agriculture sector, their impacts are difficult to assess. This study analyses the performance of agri-environmental policies in Japan, by using the OECD’s policy impact model and reference level framework. In particular, it identifies the environmental impacts of three simulated agri-environmental policies based on farms’ characteristics. The results suggest that a policy mix of regulation and an incentive payment would reduce environmental impacts, suggesting that targeted approaches could improve the cost-effectiveness of agri-environmental policies. |
| Keywords: | Agri-environmental policies, Water quality, Climate change, Economic-biophysical model, Reference levels, Agribusiness, Agricultural and Food Policy, Farm Management, |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi14:199367&r=env |
| By: | Pei, Jiansuo; Meng, Bo; Wang, Fei; Xue, Jinjun |
| Abstract: | This study adopts the perspective of demand spillovers to provide new insights regarding Chinese domestic-regions' production position in global value chains and their associated CO2 emissions. To this end, we constructed a new type of World Input-Output Database in which China's domestic interregional input-output table for 2007 is endogenously embedded. Then, the pattern of China's regional demand spillovers across both domestic regions and countries are revealed by employing this new database. These results were further connected to endowments theory, which help to make sense of the empirical results. It is found that China's regions locate relatively upstream in GVCs, and had CO2 emissions in net exports, which were entirely predicted by the environmental extended HOV model. Our study points to micro policy instruments to combat climate change, for example, the tax reform for energy inputs that helps to change the production pattern thus has impact on trade pattern and so forth. |
| Keywords: | China, International trade, Input-output tables, Environmental protection, Climatic change, Taxation, Energy tax, Carbon tax, Climate change, CGE model, Energy intensive industry |
| JEL: | C65 Q56 R15 |
| Date: | 2015–02 |
| URL: | http://d.repec.org/n?u=RePEc:jet:dpaper:dpaper493&r=env |
| By: | Igor A. Makarov; Anna K. Sokolova |
| Abstract: | According to current international climate change regime countries are responsible for greenhouse gas (GHG) emissions, which result from economic activities within national borders, including emissions from producing goods for exports. At the same time imports of carbon intensive goods are not regulated by international agreements. In this paper emissions embodied in exports and imports of Russia were calculated with the use of inter-country input-output tables. It was revealed that Russia is the second largest exporter of emissions embodied in trade and the large portion of these emissions is directed to developed countries. The reasons for high carbon intensity of Russia’s exports are obsolete technologies (in comparison to developed economies) and the structure of commodity exports. Because of large amount of net exports of carbon intensive goods the current approach to emissions accounting does not suit interests of Russia. On the one hand, Russia, as well as other large net emissions exporters, is interested in the revision of allocation of responsibility between producers and consumers of carbon intensive products. On the other hand, current technological backwardness makes Russia vulnerable to the policy of “carbon protectionism”, which can be implemented by its trade partners. |
| Keywords: | global climate change, carbon emissions, virtual carbon, carbon intensity of trade, Russia’s trade, input-output analysis, Kyoto protocol |
| JEL: | F18 |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:wsr:wpaper:y:2015:i:149&r=env |
| By: | Anna Grodecka; Karlygash Kuralbayeva |
| Abstract: | What is the optimal instrument design and choice for a regulator attempting to control emissions by private agents in face of uncertainty arising from business cycles? In applying Weitzman’s result [Prices vs. quantities, Review of Economic Studies, 41 (1974), 477-491] to the problem of greenhouse gas emissions, the price-quantity literature has shown that, under uncertainty about abatement costs, price instruments (carbon taxes) are preferred to quantity restrictions (caps on emission), since the damages from climate change are relatively flat. On the other hand, another recent piece of academic literature has highlighted the importance of adjusting carbon taxes to business cycle fluctuations in a procyclical manner. In this paper, we analyze the optimal design and the relative performance of price versus quantity instruments in the face of uncertainty stemming from business cycles. Our theoretical framework is a general equilibrium real business cycle model with a climate change externality and distortionary fiscal policy. First, we find that in an infinitely flexible control environment, the carbon tax fluctuates very little and is approximately constant, whilst emissions fluctuate a great deal in response to a productivity shock. Second, we find that a fixed price instrument is advantageous over a fixed quantity instrument due to the cyclical behavior of abatement costs, which tend to increase during expansions and decline during economic downturns. Our results suggest that the carbon tax is approximately constant over business cycles due to “flat” damages in the short-run and thus procyclical behavior as suggested by other studies cannot be justified merely on the grounds of targeting the climate externality. |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp177&r=env |
| By: | Kai A. Konrad; Marcel Thum |
| Abstract: | When politicians negotiate in international climate conventions they may suffer from incomplete information about each other's preferences about reaching an agreement. As is known, this may cause failure to reach an efficient cooperative agreement. We study the role of the clean development mechanism (CDM) for the likelihood of such failure. The CDM has been introduced in the context of the Kyoto Protokol to allow countries to make efficiency enhancing use of cross-country low-cost mitigation opportunities. We use a simple bargaining framework to uncover why this mechanism may reduce the likelihood for reaching an efficient cooperative climate agreement. |
| Keywords: | clean development mechanism, international climate agreements, bargaining, incomplete information |
| JEL: | Q54 Q58 F53 H41 |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:mpi:wpaper:tax-mpg-rps-2014-20&r=env |
| By: | Shahriar Shah Heydari (Department of Environmental and Business Economics, University of Southern Denmark); Niels Vestergaard (Department of Environmental and Business Economics, University of Southern Denmark) |
| Abstract: | In this article, we look at the combination of several market-based climate and energy policies and compare them with first best solution, i.e., a perfectly designed emission tax or emission cap level. It is shown that in the case an emission control policy is imperfect designed or implemented, its per-formance can be improved by an energy (output) tax/subsidy scheme, where the subsidy is given only to renewable generators or for energy efficiency improvements. This combination can bring the production levels and energy price to the optimum level. The emission level is also decreased by this combination, but not to the optimum level. Thus it may be considered as a second-best policy set. However, other targets on renewables share or energy efficiency level are improved instead, although they are bounded by an optimum level. The policy combination needs to be applied glob-ally to have its best effect and heterogeneous implementation (i.e. different levels of tax/subsidy for various regions) makes welfare loss, but still adding a global emission control policy to a set of ex-isting different local output tax/subsidy policies may be beneficial. |
| Keywords: | Climate change mitigation, environmental policy, instrument mixes, economic ef-ficiency, environmental taxes and subsidies |
| JEL: | C61 D60 H21 H23 Q41 Q48 |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:sdk:wpaper:119&r=env |
| By: | Gavenas, Ekaterina (School of Economics and Business, Norwegian University of Life Sciences); Rosendahl, Knut Einar (School of Economics and Business, Norwegian University of Life Sciences); Skjerpen, Terje (School of Economics and Business, Norwegian University of Life Sciences) |
| Abstract: | Emissions from oil and gas extraction matter for the lifecycle emissions of fossil fuels, and account for significant shares of domestic emissions in many fossil fuel exporting countries. In this study we investigate empirically the driving forces behind CO2-emission intensities of Norwegian oil and gas extraction, using detailed field-specific data that cover all Norwegian oil and gas activity. We find that emissions per unit extraction increase significantly as a field’s extraction declines. Moreover, emission intensities increase significantly with a field’s share of oil in total oil and gas reserves. We also find some indication that oil and CO2-prices may have influenced emission intensities on the Norwegian continental shelf. |
| Keywords: | CO2-emissions; Oil and gas extraction; Panel data estimation |
| JEL: | C23 L71 Q54 |
| Date: | 2015–03–17 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nlsseb:2015_007&r=env |
| By: | Omri, Anis (University of Sfax); Daly, Saida (University of Sfax); Rault, Christophe (University of Orléans); Chaibi, Anissa (IPAG Business School) |
| Abstract: | This paper examines the relationship between financial development, CO2 emissions, trade and economic growth using simultaneous-equation panel data models for a panel of 12 MENA countries over the period 1990-2011. Our results indicate that there is evidence of bidirectional causality between CO2 emissions and economic growth. Economic growth and trade openness are interrelated i.e. bidirectional causality. Feedback hypothesis is validated between trade openness and financial development. Neutrality hypothesis is identified between CO2 emissions and financial development. Unidirectional causality running from financial development to economic growth and from trade openness to CO2 emissions is identified. Our empirical results also verified the existence of environmental Kuznets curve. These empirical insights are of particular interest to policymakers as they help build sound economic policies to sustain economic development and to improve the environmental quality. |
| Keywords: | financial development, CO2 emissions, trade, economic growth, simultaneous-equation models |
| JEL: | E44 E58 F36 P26 |
| Date: | 2015–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp8868&r=env |
| By: | Ahlheim, Michael; Frör, Oliver; Langenberger, Gerhard; Pelz, Sonna |
| Abstract: | Based on a contingent valuation study in Shanghai the authors assess people’s willingness to contribute personally to the alleviation of environmental problems occurring in distant parts of the country. One split of survey assessed Shanghai residents’ willingness to pay for the preservation of rainforest in Yunnan, while the other split referred to the willingness to pay for the preservation of a single plant species (i.e. eaglewood) growing in this rainforest. The objectives of this study were twofold. Firstly, the authors wanted to find out if people living in big Chinese cities like Shanghai take an interest in the environmental problems existing in some remote parts of the country and if they are willing to contribute personally to remedy these problems. Secondly, the authors wanted to learn more about the motivation behind this kind of empathy, if it exists. The researchers were especially interested in the question if this empathy refers to the specific environmental problems addressed in the surveys or if it is motivated more by a general feeling of obligation towards environmental issues. |
| Keywords: | eaglewood, rubber cultivation, biodiversity preservation, contingent valuation, ecosystem services, China. |
| JEL: | D6 D61 Q5 Q51 Q57 |
| Date: | 2014–11–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:62897&r=env |
| By: | Simon Dietz; Nicholas Stern |
| Abstract: | To slow or not to slow� (Nordhaus, 1991) was the first economic appraisal of greenhouse gas emissions abatement and founded a large literature on a topic of great, worldwide importance. In this paper we offer our assessment of the original article and trace its legacy, in particular Nordhaus� later series of �DICE� models. From this work many have drawn the conclusion that an efficient global emissions abatement policy comprises modest and modestly increasing controls. On the contrary, we use DICE itself to provide an initial illustration that, if the analysis is extended to take more strongly into account three essential elements of the climate problem � the endogeneity of growth, the convexity of damages, and climate risk � optimal policy comprises strong controls. To focus on these features and facilitate comparison with Nordhaus� work, all of the analysis is conducted with a high pure-time discount rate, notwithstanding its problematic ethical foundations. |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp159&r=env |
| By: | Nyborg, Karine (University of Oslo) |
| Abstract: | International climate negotiations have been troubled by mutual mistrust. At the same time, a hope seems to prevail that once enough countries moved forward, others would follow suit. If the abatement game faced by climate negotiators is a Prisoners' Dilemma, and countries are narrowly self-interested, such a hope seems unfounded. However, if countries display reciprocity – a preference to repay meanness by meanness and kindness by kindness – their willingness to abate will be conditional on others' abatement. I show that a full or majority coalition can be stable. This requires, however, that a majority of countries have relatively strong reciprocity preferences. No coalition participation is always stable. In addition, a stable minority coalition may exist; if so, it is weakly larger than the maximum stable coalition with standard preferences, but is characterized by mutually negative sentiments. |
| Keywords: | international environmental agreements, reciprocity, coalitions |
| JEL: | F53 H87 Q54 |
| Date: | 2015–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp8866&r=env |
| By: | Luisito Bertinelli (CREA, Université de Luxembourg); Amer Tabakovic (CREA, Université de Luxembourg); Luca Marchiori (Central Bank of Luxembourg); Benteng Zou (CREA, Université de Luxembourg) |
| Abstract: | The present study explores the strategic interactions of countries setting pollution abatement policies in a dynamic two-player game. To reach a common target of environmental quality, countries can choose to commit to a stream of pollution abate- ment right from the beginning of the game or decide upon abatement at each moment in time. Most of the literature studies homogenous strategies, where no country or all countries commit to a (same) predefined policy. The main novelty of this paper resides in the introduction of heterogeneous strategies, where only one country commits to a specific abatement policy and which is actually the kind of strategic behavior currently observed among large pollution nations. We find that the pollution level can be lower under heterogeneous than under homogenous strategies. A stringent environmental quality target will induce the committed player to produce an abatement effort that more than compensates the free-riding attitude of the non-committed player. |
| Keywords: | Heterogeneous strategies, differential games, transboundary pollution, abatement. |
| JEL: | Q55 C61 Q59 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:luc:wpaper:15-02&r=env |
| By: | Iguchi, Hakaru; Arimura, Toshi H.; Michida, Etsuyo |
| Abstract: | The objective of the present study is to examine the determinants of ISO 9001 certification, focusing on the effect of Product-related Environmental Regulations on Chemicals (PRERCs) and FDI using the answers to several questions in our Vietnam survey conducted from December 2011 to January 2012. Our findings suggest that PRERCs may help with the improvement in quality control of Vietnamese firms. If Vietnamese manufacturing firms with ISO 9001 certification are more likely to adopt ISO 14001, as well as firms in developed countries, our results indicate that the European chemical regulations may assist in the reduction of various environmental impacts in Vietnam. In addition, we found that FDI promotes the adoption of ISO 9001. If FDI firms in Vietnam certify ISO 14001 after the adoption of ISO 9001, as in the case of Malaysia and the developed economies, FDI firms may also be able to improve environmental performance as a result of ISO 14001. |
| Keywords: | Vietnam, International trade, Environmental protection, Foreign investments, Business enterprises, ISO 9001, FDI, Product-related Environmental Regulation |
| JEL: | F18 Q56 D22 |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:jet:dpaper:dpaper497&r=env |
| By: | Rosso, Gianluca; Ricca, Andrea; Chieppa, Alessandro |
| Abstract: | Climate extreme events are constantly increasing. What is the effect of these potentially catastrophic events on insurance demand in Italy, with particular reference to the economic activities? Extreme precipitation events over most of the midlatitude land masses and over wet tropical regions will very likely become more intense and more frequent by the end of this century, as global mean surface temperature increases. If we look to Italy, examination of the precipitation time series shows a sensitive and highly significant decrease in the total number of precipitation events in Italy, with a trend of events intense dissimilar as regards to low and high intensity, with a decline of firsts and an increase of seconds. The risk related to hydrological natural disasters is in Italy one of the most important problem for both damage and number of victims. How evolves the ability to pay for damages, with a view to safeguarding work and economic activities, and employment protection? |
| Keywords: | Climate change, extreme events, precipitations, floods, catastrophic events, insurance, Italy, statistics, regression, fixed effects. |
| JEL: | Q51 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:62903&r=env |
| By: | Dumortier, Jerome |
| Abstract: | Several states have a renewable portfolio standard (RPS) and allow for biomass co-firing to meet the RPS requirements. In addition, a federal renewable fuel standard (RFS) mandates an increase in cellulosic ethanol production over the next decade. This paper quantifies the effects on local biomass supply and demand of different co-firing policies imposed on 398 existing coal-fired power plants. Our model indicates which counties are most likely to be able to sustain cellulosic ethanol plants in addition to co-firing electric utilities. The simulation incorporates the county-level biomass market of corn stover, wheat straw, switchgrass, and forest residues as well as endogenous crop prices. Our scenarios indicate that there is sufficient feedstock availability in Southern Minnesota, Iowa, and Central Illinois. Significant supply shortages are observed in Eastern Ohio, Western Pennsylvania, and the tri-state area of Illinois, Indiana, and Kentucky which are characterized by a high density of coal-fired power plants with high energy output. |
| Keywords: | switchgrass, miscanthus, land-use change, Environmental Economics and Policy, Land Economics/Use, Resource /Energy Economics and Policy, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iuspea:198706&r=env |
| By: | V. Saravanakumar |
| Abstract: | This study uses panel data for 39 years and 13 districts to estimate the yield sensitivity of major food crops to climate change in the South Indian state of Tamil Nadu. We first estimate the marginal impacts of climate variables on crop yield using Panel Corrected Standard Error (PCSE) models. These estimates are then used to identify yield sensitivities in the future based on projected climate variables from theRegional Climate Model version 4 (RegCM4). Empirical results show a quadratic (inverted U shaped) relationship between rice and sorghum yield and climate variables. As temperature and rainfall increase, crop yield initially increases up to a threshold level, and then decreases. Following the RegCM4 projections that observed warming and anomalies in rainfall will continue, this could result in a significant loss in crop productivity. Projections suggest that there may be a 10 percent decline in rice yield and 9 percent decline in sorghum yield by the end of the 21st century relative to average yields during 1971-2009. This indicates a need for new seed varieties that are less sensitive to rainfall and temperature thresholds, and, adaptation practices such as adjustments in sowing time. |
| Keywords: | Climate change, Agriculture, Productivity changes, Panel corrected standard errors, Regional climate model, India |
| URL: | http://d.repec.org/n?u=RePEc:snd:wpaper:91&r=env |
| By: | Christian Hilber; Charles Palmer |
| Abstract: | Study examines air pollution concentration in 75 urban areas between 2005 and 2011. Focuses specifically on the impacts of changes in the urban environment and transportation mode on pollution. A surprising finding of the research is that increasing car and population densities significantly reduce air pollution concentration in city centers where air pollution induced health risks are greatest. These effects are largely confined to cities in non-OECD countries. Two possible mechanisms for the negative effect of car density are explored: (i) increasing car density permits a decentralization of residential and economic activity; and (ii) car usage substitutes for motorbike usage. We find limited evidence in favour of (i) and no evidence in favour of (ii). We also observe a complex relationship between income and pollution concentration as well as a general downward-trend in pollution concentration over time. Overall, our findings are indicative that densely populated polycentric cities may be ‘greener’ and ‘healthier’ than comparable monocentric ones. |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp175&r=env |
| By: | Alessandra Colombelli (DIGEP, Politecnico di Torino; GREDEG-CNRS; BRICK, Collegio Carlo Alberto); Jackie Krafft (Université Nice Sophia Antipolis; GREDEG-CNRS); Francesco Quatraro (Université Nice Sophia Antipolis and GREDEG-CNRS; Collegio Carlo Alberto; Department of Economics and Statistics Cognetti de Martiis, University of Torino) |
| Abstract: | This paper investigates the impact of eco-innovation on firms' growth processes, with a special focus on gazelles, i.e. firms' showing higher growth rates than the average. In a context shaped by more and more stringent environmental regulatory frameworks, we posit that inducement mechanisms stimulate the adoption of green technologies, increasing the derived demand for technologies produced by upstream firms supplying eco-innovations. For these reason we expect the generation of green technologies to trigger sales growth. We use firm-level data drawn from the Bureau van Dijk Database, coupled with patent information obtained from the OECD Science and Technology Indicators. The results confirm that eco-innovations are likely to augment the effects of generic innovation on firms' growth, and this is particularly true for gazelles, which actually appear to run faster than the others. |
| Keywords: | Gazelles, Eco-Innovation, firms' growth, Inducement mechanisms, derived demand, WIPO Green Inventory |
| JEL: | L10 L20 O32 O33 Q53 Q55 |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2015-12&r=env |
| By: | Louis P. Cain (Loyola University Chicago and Northwestern University); Brooks A. Kaiser (Department of Environmental and Business Economics, University of Southern Denmark) |
| Abstract: | We find three intertwined ambitions that drove federal legislation over wildlife and biodiversity at the beginning of the 20th Century: establishment of multiple-use federal lands, the economic development of natural resources, and the maintenance of option values. We examine this federal intervention in natural resource use by analyzing roll-call votes over the past century. These votes involved decisions regarding public land that reallocated the returns to users by changing the asset’s physical character or its usage rights. We suggest that long term consequences affecting current resource allocations arose from disparities between broadly dispersed benefits and locally concentrated socio-economic and geo-physical (spatial) costs. We show that a primary intent of public land management has become to preserve multiple-use option values and identify important factors in computing those option values. We do this by demonstrating how the willingness to forego current benefits for future ones depends on the community’s resource endowments. These endowments are defined not only in terms of users’ current wealth accumulation but also from their expected ability to extract utility from natural resources over time. |
| Keywords: | Environmental Legislation; Wildlife Legislation; Endangered Species Act; Lacey Act; Economic History of the Environment |
| JEL: | N51 N52 Q28 Q23 Q24 |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:sdk:wpaper:118&r=env |
| By: | KAINOU Kazunari |
| Abstract: | Current Japanese General Energy Statistics quantifies energy and carbon balance of oil refinery sector solely by input such as crude oil and output such as gasoline, and regards the discrepancy as a statistical error and does not count energy consumption or energy origin carbon dioxide emission for the discrepancy.But issues are raised by a related committee of Ministry of the Environment that some part of the discrepancy of oil refinery sector might contain energy consumption and energy origin carbon dioxide emission such as oil coke incineration emission associated with fluid-bed cracking catalyzer refreshment in the heavy oil dissolving processes. So, further statistical accuracy improvement for oil refinery sector's energy and carbon balance had been required.The author developed new methodology to identify the part that is estimated as an energy consumption and carbon dioxide emission such as fluid-bed cracking catalyzer and another part that is estimated as a statistical error from current discrepancy in this paper, by quantifying precise energy and carbon balance of oil refinery sector in the past, based on various related official statistics and using new calorific value and carbon emission factor that would be applied after FY2013 statistics and other brand new available information.Based on the results, the author recommends that energy consumption and energy origin carbon dioxide emissions such as oil coke incineration emission associated with fluid-bed cracking catalyzer refreshment in the heavy oil dissolving processes should be quantified and reported using the methodology and improve oil refinery sector's energy and carbon balance statistical accuracy. |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rdpsjp:15007&r=env |
| By: | Luis A. Gil-Alana (Faculty of Economics and NCID, University of Navarra, Spain); Fernando Perez de Gracia (Faculty of Economics and NCID, University of Navarra, Spain); Rangan Gupta (Department of Economics, University of Pretoria) |
| Abstract: | This study reexamines the issue of persistence in carbon emission allowance spot prices, using daily data, and covering the period from 28/2/2007 to 14/05/2014. For this purpose we use techniques based on the concept of long memory accounting for structural breaks and non-linearities in the data, with both of these aspects potentially affecting the degree of persistence. Our results indicate that, while there is no evidence of non-linearity, when allowing for structural breaks, persistence of shocks to the carbon emission allowance is markedly reduced, with the same being transitory in nature for recent sub-samples. |
| Keywords: | CO2 emission allowance prices, fractional integration, nonstationarity |
| JEL: | C22 G13 G14 Q50 |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:201515&r=env |
| By: | Niels Petersen (Max Planck Institute for Research on Collective Goods, Bonn) |
| Abstract: | The paper examines the potential of customary international law to protect global public goods. In particular, it focuses on the question whether customary law can contribute to the mitigation of climate change. The analysis proceeds in the three steps. First, it will have a closer look at the concept of public goods and common pool resources in economic theory and experimental economics. On this basis, the second section examines the formation of customary international law. The analysis shows that sustaining cooperation in multilateral settings through customary law is difficult. With regard to the mitigation of climate change, it is unlikely that states will coordinate on an equilibrium that will lead to a reduction of greenhouse gas emissions. The section then examines two further ways of identifying customary international law through moral interpretation and judicial lawmaking. However, the potential of these two avenues to protect global public goods effectively is rather limited. The final section analyzes the protection of global public goods through the initially unilateral extension of authority. One problem of global public goods is that states have shared authority over them. A solution might be to divide authority by extending the jurisdiction of the nation states. I will draw from an example concerning the protection of common pool resources, the protection of fish stocks, and analyze whether this example contains any lessons for the mitigation of climate change. |
| JEL: | K33 |
| Date: | 2015–02 |
| URL: | http://d.repec.org/n?u=RePEc:mpg:wpaper:2015_05&r=env |
| By: | Peri, Massimo; Vandone, Daniela; Baldi, Lucia |
| Abstract: | Water, food and energy (WFE) are strongly interconnected: each depends on the other for a lot of concerns, spanning from guaranteeing access to services, to environmental, social and ethical impact issues, to price relations. The development, use, and waste generated by demand for these resources drive global changes and fears of resource scarcity. To date, a new approach to the concept of sustainable development is emerging and a joint analysis of these three areas is needed. “Demand for water, food and energy is expected to rise by 30-50% in the next two decades, while economic disparities incentivize short-term responses in production and consumption that undermine long-term sustainability. Shortages could cause social and political instability, geopolitical conflict and irreparable environmental damages. Any strategy that focuses on one part of the WFE relationships without considering its interconnections risks serious unintended consequences” (World Economic Forum, 2011). |
| Keywords: | Agribusiness, Agricultural and Food Policy, |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi14:199346&r=env |
| By: | Pratono, Aluisius Hery; Mahmood, Rosli |
| Abstract: | Contingency theory points out the adaptive management is crucial point to sustainable firm performance. This research aims to determine the relative importance of a set of variables comprising the four entrepreneurial management variables, i.e. strategic orientation, organization culture, organization structure, and reward system, and a set of environmental turbulence variables in predicting firm performance. This research uses firm-level data with observed population of this research is SMEs in Surabaya, Indonesia. Through adopting hierarchical regression approach and partial least square method, this study indicates that moderating effect of environmental turbulence changes the direction of relationship between entrepreneurial management and firm performance. During low environmental turbulence, entrepreneurial management has positive impact on firm performance, but the direction changes. Entrepreneurial management has negative impact on firm performance during high environmental turbulence. |
| Keywords: | firm performance, entrepreneurial management, environmental turbulence |
| JEL: | M0 M00 M1 M12 M14 M2 M5 M52 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:58493&r=env |
| By: | Valentina Bosetti; Melanie Heugues; Alessandro Tavoni |
| Abstract: | Cooperation between countries is required to overcome major societal problems, such as climate change. However, rational logic dictates that individual countries are incentivised not to act, instead preferring to ‘free ride’ on the efforts of others. It is possible to imagine a scenario in which all countries wait for each other to show leadership, resulting in an irreversible catastrophe. Successful climate change mitigation therefore hinges on some actors leading by example. Those countries will have to push temporarily individual incentives aside in favour of the long-term greater good. This paper uses game theory to find out how countries can work together to mitigate against climate change. The ‘threshold public bad game’ described in this paper was designed to capture the trade-offs faced by countries choosing whether to transition to clean technology, and to what extent. The game accounts for the fact that the degree to which a country commits to clean technology will dictate whether countries collectively manage to avert dangerous climate change or not. The game also features innovation ‘spillovers’. |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp176&r=env |
| By: | Raouf Boucekkine (Aix-Marseille University (Aix-Marseille School of Economics), CNRS and EHESS); Fouad El Ouardighi (ESSEC Business School) |
| Abstract: | We study an optimal AK-like model of capital accumulation and growth in the presence of a negative environmental externality in the tradition of Stokey (1998). Both production and consumption activities generate polluting waste. The economy exerts a recycling effort to reduce the stock of waste. Recycling also generates income, which is fully devoted to capital accumulation. The whole problem amounts to choosing the optimal control paths for consumption and recycling to maximize a social welfare function that notably includes the waste stock and disutility from the recycling effort. We provide a mathematical analysis of both the asymptotic behavior of the optimal trajectories and the shape of transition dynamics. Numerical exercises are performed to illustrate the analysis and to highlight some of the economic implications of the model. |
| Keywords: | Capital accumulation, sustainability, waste, recycling. |
| JEL: | Q57 C61 |
| Date: | 2015–03–03 |
| URL: | http://d.repec.org/n?u=RePEc:aim:wpaimx:1513&r=env |
| By: | Stefan Trück; Rafal Weron |
| Abstract: | We examine convenience yields in the EU-wide CO2 emissions trading scheme (EU-ETS) during the first Kyoto commitment period (2008-2012). We find that the market has changed from initial backwardation to contango with significantly negative convenience yields in futures contracts. We further examine the impact of interest rate levels in the Eurozone, the increasing level of surplus allowances and banking as well as returns, variance or skewness in the EU-ETS spot market. Our findings suggest that the drop in risk-free rates during and after the financial crisis has impacted on the deviation from the cost-of-carry relationship for Kyoto commitment emission allowances (EUA) futures contracts. Our results also illustrate a negative relationship between convenience yields and the increasing level of inventory during the first Kyoto commitment period providing an explanation for the high negative convenience yields during Phase II. Finally, we find that market participants are willing to pay an additional risk premium in the futures market for a hedge against increased volatility in EUA prices. |
| Keywords: | CO2 Emissions Trading; Commodity Markets; Spot and Futures Prices; Convenience Yields; |
| JEL: | G10 G13 Q21 Q28 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:wuu:wpaper:hsc1503&r=env |
| By: | Fujii, Hidemichi; Shirakawa, Seiji |
| Abstract: | Green chemistry plays an important role in achieving sustainable development. This study examines the determinant factors for technology invention related to green chemistry in Japan using patent application data and a decomposition analysis framework. Our main findings are that the number of green chemical technologies applied to production processes have increased because of the scale-up of overall research activities and increased priority. Additionally, the number of patent applications for green chemical technology-related product design and renewable energy increased mainly because of increased research priority. The differences in determinants among types of green chemical technology inventions are useful for formulating an effective policy to promote innovation in green chemical technology. |
| Keywords: | green chemistry, decomposition analysis, patent, research and development, Japan |
| JEL: | O3 O31 O34 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:62790&r=env |
| By: | Prajna Paramita Mishra |
| Abstract: | Hussain Sagar, a lake constructed in 1562, joins the twin cities of Hyderabad and Secunderabad in India, and is used for a variety of recreational purposes. Like many lakes in urban India, this lake is threatened by its increasingly polluted waters. In this study, we seek to estimate demand for improvements in the lake's environmental quality. We adopt a combined revealed and stated preference approach to measure gains in welfare as a result of changes in environmental quality. Most studies that combine stated and revealed preference methods confine themselves to an on-site sample survey. Our study improves on this approach by interviewing off-site citizens as well. Our estimates indicate that the park provides recreational benefits or consumer surplus of INR 2,082 (USD 35) for on-site respondents and INR 965 (USD 16) for off-site respondents per visit to the park. Furthermore, improvements in environmental quality will likely increase these benefits, on average, by 9% for on-site visitors and significantly more for off-site residents. We recommend that park authorities increase the access fee from the current INR 10 (USD 0.16) to at least INR 20 (USD 0.33) per visit. With an entry fee of INR 20, the government can potentially earn INR 22-89 million (USD 0.36 - 1.48 million) in revenues per year, which will make it possible to improve the quality of the lake and its surroundings. |
| Keywords: | Hussain Sagar Lake, Travel Cost, Contingent Behavior, WTP, Hyderabad |
| URL: | http://d.repec.org/n?u=RePEc:snd:wpaper:90&r=env |
| By: | Commander, Simon (IE Business School, Altura Partners); Nikoloski, Zlatko (London School of Economics); Vagliasindi, Maria (World Bank) |
| Abstract: | It is widely accepted that the costs of under-pricing energy are large, whether in advanced or developing countries. This paper explores how large these costs can be by focussing on the size of the external effects that energy subsidies in particular generate in two important sectors – transport and agriculture – in two MENA countries, Egypt (transport) and Yemen (agriculture). Our focus is mainly on the costs associated with congestion and pollution as well the impact of under-priced energy for depletion of scarce water resources including through crop selection. Quantifying the size of external effects in developing countries has received relatively little analytical attention, although there is a significant body of literature for the advanced world. By building on earlier research, as well as employing the UN ForFITS model we are able to provide indicative estimates of the external costs of energy subsidies, as manifested in congestion and pollution. Our estimates using simulations indicate that these costs could be materially reduced by elimination or reduction of energy subsidies. We are also able to describe the impact of energy subsidies on water consumption in a region where water resources are particularly limited. As such, our findings provide further evidence of the adverse and significant consequences of subsidising energy. |
| Keywords: | energy subsidies, pollution, congestion, health effects of energy subsidies |
| JEL: | O13 R41 Q41 Q53 I15 |
| Date: | 2015–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp8865&r=env |
| By: | Sugden, Fraser.; Shrestha, L.; Bharati, Luna.; Gurung, P.; Maharjan, L.; Janmaat, J.; Price, J. I.; Sherpa, Tashi Yang Chung.; Bhattarai, Utsav.; Koirala, S.; Timilsina, B. |
| Keywords: | Case studies; Property rights; Land management; Social aspects; Political aspects; Economic aspects; Models; Hydrology; Agrarian structure; Women farmers; Gender; Water availability; Migration; Tanks; Ponds; Water storage; Climate change |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:iwt:rerpts:h046684&r=env |
| By: | Novelli, Emanuele; Scherschel, Claus; Schiefer, Gerhard |
| Abstract: | Due to raising pressures from civil society, consumers, businesses and public institutions, appropriate methodological, technological and organizational innovations acquired a central role for the establishment of global sustainable food supply chains. This paper presents an-line software able to support the implementation of sustainable policies for two highly traded products between Latina America and Europe that still raise environmental, social and economic concerns, namely soymeal and beef. The E-Platform propose itself as a synthesis of both scientific and management requirements, therefore combining complex analysis methods as life cycle analysis in the back-end and implementation and monitoring modules in the front-end. The system, currently in its test phase in Brazil, Argentina and Mexico, has its primary objectives in facilitating the implementation of new sustainable production policies, in opening access to new markets and in complying with stringent requirements minimizing the certification costs and time investments for the actors of the supply chain. |
| Keywords: | sustainability management, implementation, life cycle analysis, audit, information organization, Agribusiness, |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi14:199381&r=env |
| By: | Sebők, András; Homolka, Fruzsina; Hegyi, Adrienn |
| Abstract: | The majority of SMEs needs repeated explanations and evidences to be convinced about the feasibility of adopting measures for improving sustainability. This is a particularly challenging task since meeting the requirements of business growth, reduction of environmental impact, social responsibility and good governance at the same time requires complex thinking and ability to find trade-offs. Human and financial resources of SMEs are usually limited. It is difficult to motivate them to change their practices until they can’t see that these changes improve or at least maintain the viability of their business and will bring them clear benefits and relatively quick return of their invested efforts and resources. Although everybody agrees that the reduction of the environmental impact and increasing the social responsibility of food and agriculture businesses is unavoidable and beneficial for the society in general, SMEs are not convinced that their additional costs and efforts will be acknowledged by the customers and consumers. If during the explanation of the sustainability requirements the main emphasis is put on the environmental aspects this message may not be satisfactory effective to persuade food SMEs to take actions, particularly in the less affluent countries. Similar typical causes of the reluctance to act on improving compliance to environmental and social requirements were found in the Latin- American countries and in Hungary, which include the following arguments and concerns: • The smaller is a business, the smaller is its contribution to the total environmental impact. • Many other businesses including larger ones than us can continue to make business without making major changes in their activities. Why should we make the first step? Is it a real consumer requirement? • Who will cover the additional costs of the changes, sustainability measures? • Our limited resources have to be focused on production. We do not have time to spend on measurements and calculations. Why shall we share our data with our competitors, why shall we give them information, what they can use for competing with us? Although customer requirements can be used to impose pressure on suppliers to achieve some changes their impact will be limited until the suppliers can find alternative markets for their products produced with the current practices. Better improvement can be achieved by convincing SMEs that the changes towards improved environmental and social performance will result in improved competitiveness and profitability. For persuading SMEs their main problems in operating their business should be understood – e.g. the permanent struggle to cope with the pressure of the customers to reduce prices and in parallel to comply with the more and more demanding legal and customer food safety, environmental and social requirements while price of energy, water, material and cost of labour is permanently increasing. Such value propositions should be offered for them which provide a solution for harmonised improvement of several aspects of some of these expectations. Both in LA and in South-East Europe farmers and SMEs have to be convinced about the benefits and trained on the appropriate methods of collaborating with peers, to share resources and costs without disclosing confidential information Experiences collected during work with food SMEs showed that resource efficiency and improving competitiveness are very attractive subjects for nearly all of them. Improving the efficiency of using resources such as energy, water, material, and packaging material not only results in reduction of costs but also leads to reduction of environmental impact. More efficient use of labour force will also reduce costs and potential solutions for using the staff saved to increase the added value of the products and services can be explored instead of making them redundant. Thus the subject of resource efficiency provides an approach through which the interest of food SMEs can be raised and direct benefits reflected by better competitiveness can be offered in parallel with the reduction of environmental impact. In addition to that several benefits of collaboration along the food chain can also be explained to SMEs. |
| Keywords: | resource efficiency, value proposition, cost reduction, sustainability, knowledge transfer, Agribusiness, |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi14:199380&r=env |
| By: | R. M. Wasantha Rathnayake |
| Abstract: | Turtles at the Rekawa sanctuary in Sri Lanka are under threat due to ongoing illegal activities such as killing turtles for meat, egg collection for sale, and the use of turtle shells to make products for markets. This study estimates the entrance fee that can be charged to visitors for ‘turtle watching' to ascertain whether revenues from such fees can be used to compensate fishermen and reduce such illegal activities. We carried out a contingent valuation study at the Rekawa sanctuary and Bundala and Yala national parks to examine the foreign and local visitors' willingness to pay (WTP) for turtle conservation under two different management scenarios. Scenario 1 sought to ascertain visitor preferences if visitor services were improved, while Scenario 2 focused on both visitor services and potential conservation initiatives. The findings suggest that a majority (63%) of visitors are willing to pay an entrance fee, which can be used for protecting turtles and improving visitor facilities at Rekawa. The estimated mean WTP per visit for local visitors was LKR 93 (USD 0.73) and LKR 143 (USD 1.12) for Scenarios 1 and 2, respectively, while the mean WTP of foreign visitors was USD 15 and USD 19 for Scenarios 1 and 2, respectively. Further, if we implement scenarios 1 and 2, annual revenue would increase by LKR 70 million and LKR 50 million respectively. These results, which suggest potentially huge gains in revenue, can be used to re-design entry fees for the Rekawa sanctuary and secure the cooperation of low income fishermen in turtle conservation. |
| Keywords: | Turtles, Willingness to pay, Revenue changes, Turtle watching, Conservation, Rekawa, Sri Lanka |
| URL: | http://d.repec.org/n?u=RePEc:snd:wpaper:92&r=env |
| By: | Noy, Ilan |
| Abstract: | We tabulate and measure the burden of disasters on the Pacific Island Countries (PICs) by aggregating and comparing the data found in the two global datasets on disaster impacts. We show that the most commonly used dataset greatly underestimates the burden of disasters for the Pacific islands. Next, we describe a new index that aggregates disaster impacts, calculate this index for the PICs, and then compare the burden of disasters for the island countries of the Pacific with the island countries of the Caribbean. This comparison demonstrates quite clearly that the burden of disasters is significantly more acute in the Pacific. Lastly, we discuss the evidence regarding the future impact of climatic change in the Pacific on the region’s disaster burden. The Pacific is facing a very high degree of disaster risk, and that is only predicted to increase in the future. On the other hand, the region has a small population, and given the global resources available for disaster risk reduction, it can easily be seen as the frontier where attempts to create a more sustainable and resilient future can be put to their first tests. * |
| Keywords: | Natural disasters, Disaster impact, Pacific Island countries, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:vuw:vuwecf:4200&r=env |
| By: | Gandenberger, Carsten; Bodenheimer, Miriam; Schleich, Joachim; Orzanna, Robert; Macht, Lioba |
| Abstract: | This study employs an original survey-based dataset to explore technology transfer in CDM projects. The findings suggest that about two-thirds of the CDM projects involve a medium to very high extent of technology transfer. The econometric analysis distinguishes between knowledge and equipment transfer and specifically allows for the influence of technological characteristics, such as novelty and complexity of a technology, as well as the use of different transfer channels. More complex technologies and the use of export as a transfer channel are found to be associated with a higher degree of technology transfer. Projects involving 2- to 5-year-old technologies seem more likely to involve technology transfer than both younger and older technologies. Energy supply and efficiency projects are correlated with a higher degree of technology transfer than non-energy projects. Unlike previous studies, our analysis did not find technology transfer to be related to project size, the length of time a country has hosted CDM projects or the host country' s absorptive capacity. Our findings are similar for knowledge and equipment transfer. CDM projects are often seen as a vehicle for the transfer of climate technologies from industrialized to developing countries. Thus, a better understanding of the factors driving technology transfer in these projects may help policy makers design policies that better foster the transfer of knowledge and equipment, in addition to lowering greenhouse gas emissions. This may be achieved by including more stringent requirements with regard to international technology transfer in countries' CDM project approval processes. Based on our findings, such policies should focus particularly on energy supply and efficiency technologies. Likewise, it may be beneficial for host countries to condition project approval on the novelty and complexity of technologies and adjust these provisions over time. Since such technological characteristics are not captured systematically by PDDs, using a survey-based evaluation opens up new opportunities for a more holistic and targeted evaluation of technology transfer in CDM projects. |
| Keywords: | Clean Development Mechanism,Technology Transfer,North-South,Energy Technology,Development and Climate |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisisi:s52015&r=env |
| By: | Demircioğlu Sarı, Azra |
| Abstract: | The importance of the concept of sustainability for the organizations increases gradually. Sustainability is an instrument of measurement of current social, economic and environmental resources, which would add value to the organizations. The strategies taking these three main factors into account provide a better chance of competition for organizations and also increase the life of organizations and competition. The control of sustainability includes the integration and control of all responsibility, knowledge and strategies, which strategically support meeting of the needs of all stakeholders. In this study, how organizations maintain the stability between economic, social and environmental strategies, how they shift towards taking preventive measures against differences found in measurements and controls and how they provide the possibility of comparison between other organizations as a result of performance assessment are investigated. |
| Keywords: | sustainability, measure of sustainability, sustainability performance |
| JEL: | G3 |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:62747&r=env |
| By: | Dokken, Therese (School of Economics and Business, Norwegian University of Life Sciences); Angelsen, Arild (School of Economics and Business, Norwegian University of Life Sciences) |
| Abstract: | An emerging body of knowledge has established that poorer households in forest adjacent communities in developing countries are generally more forest reliant (higher forest income share) while richer households tend to extract more and generate higher absolute forest income. These studies commonly categorize households based on observed income in cross-section data, presenting a snap-shot reflecting both inter-household and inter-annual income variation. In this paper we introduce a new approach to categorize households based on a combination of the observed one-year income and predicted income by an augmented asset approach. Applying this approach on household data from Tanzania, we find forest reliance to be high among structurally poor households (low observed income and assets). The highest forest reliance is, however, found among the stochastically non-poor households (high observed income and low assets), and this group also has the highest absolute forest income. |
| Keywords: | Forest dependence; poverty categories; asset poverty; cross-sectional data |
| JEL: | C53 I32 Q23 |
| Date: | 2015–03–13 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nlsseb:2015_006&r=env |
| By: | Dumortier, Jerome; Siddiki, Saba; Carley, Sanya; Cisney, Joshua; Krause, Rachel; Lane, Bradley; Rupp, John; Graham, John |
| Abstract: | Energy-saving technologies have a difficult time being widely accepted and consumed in the marketplace when they have a high initial purchase price and deferred financial benefits. Consumers might not realize that, in the long-run, the financial benefits from reduced energy consumption offset much or all of the initial price premium. One strategy to address consumer misconception of this advantage is to supply information on the "total cost of ownership," a metric which accounts for the purchase price, the cost of the fuel, and other costs over the ownership period. In this article, we investigate how providing information on five-year fuel cost savings and total cost of ownership affects the stated preferences of consumers to purchase a gasoline, hybrid, plug-in hybrid, or battery electric vehicle. Through an online survey with an embedded experimental design using two distinct labels, we find that respondent rankings of vehicles are unaffected by information on five-year fuel cost savings only. However, adding information about total cost of ownership increases the probability that small/mid-sized car consumers express a preference to acquire a hybrid, plugin hybrid, or a battery-electric vehicle. No such effect is found for consumers of small sport utility vehicles. Our results are consistent with other findings in similar behavioral economics investigations on this topic and suggest that further evaluation of the effects of providing consumers with information on the total cost of ownership is warranted. |
| Keywords: | Rank-ordered logit, battery electric vehicles, life cycle cost, label information, Environmental Economics and Policy, Institutional and Behavioral Economics, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iuspea:198643&r=env |
| By: | Berlo, Kurt; Wagner, Oliver |
| Abstract: | Dieses Wuppertal Paper befasst sich mit folgenden Leitfragen: Wie wichtig sind Stadtwerke für die Energiewende? Was sind dabei die besonderen Beiträge von Stadtwerken? Hier ist insbesondere zu berücksichtigen, dass kommunal betriebene Kraft-Wärme-Kopplungs-Anlagen (KWK-Anlagen) ein wichtiger Komplementär zum Ausbau der erneuerbaren Energien darstellen und dass kommunale KWK-Anlagen inzwischen einen nennenswerten Beitrag zur Sicherstellung der Residuallast liefern. Zudem geht es um die Leitfrage, welche Rahmenbedingungen die Rolle von Stadtwerken als zentrale Akteure der Energiewende und insbesondere als Betreiber von KWK-Anlagen erschweren. Vor dem Hintergrund der skizzierten Problemlage und der dargestellten Leitfragen behandelt dieses Wuppertal Paper folgende fünf Schwerpunkte: 1. Der komplexe und extrem dynamische Ordnungsrahmen für Stadtwerke zeigt, dass ständige Anpassungen erforderlich sind, um langfristig wirtschaftlich tätig sein zu können. 2. Hier wird die Bedeutung von Stadtwerken für die kommunale Energiewende herausgearbeitet. Der zentralen Zukunftsperspektiven der Energieeffizienz, der dezentralen Kraft-Wärme-Kopplung und erneuerbaren Energien kommt hier eine tragende Rolle zu. Kommunalpolitische Entscheidungsträger nahmen dies zum Anlass, vermehrt Rekommunalisierungen zu betreiben. 3. Die energiewirtschaftliche Bedeutung von Stadtwerken wird dargestellt. Dabei wird auch der dezentralen und demokratisch legitimierten Kontrolle von kommunalen Unternehmen Rechnung getragen. Die Rückbesinnung auf die Gestaltungsmöglichkeiten von kommunaler Energiepolitik hat deutschlandweit zu einem regelrechten Gründungsboom neuer Stadtwerke geführt, weil mit eigenen Unternehmen dem Primat der kommunalen Politik in Energiefragen wieder mehr Geltung verschafft werden kann. Die Motive zur Gründung kommunaler Stadtwerke sind vor allem energie- und klimapolitischer sowie wirtschaftlicher Art. 4. Bislang zu wenig Beachtung wurde der Bedeutung der Kraft-Wärme-Kopplung für den Klimaschutz und das Gelingen der Energiewende geschenkt. Es wird daher in diesem Wuppertal Paper auch gezeigt, dass die KWK als Komplementär erneuerbarer Energien und für die Entwicklung intelligenter Netze ein wichtiger Bestandteil ist. Für Stadtwerke spielen die Aspekte des KWK-Ausbaus und des Lastmanagements zudem eine wichtige wirtschaftliche Perspektive. In einem energiewirtschaftlichen Problemabriss zur Wirtschaftlichkeit der KWK wird zudem die aktuelle Situation im Bereich der Stromerzeugung durch konventionelle Kraftwerke im Allgemeinen und der KWK im Besonderen dargestellt. Dass hier gerade die systemrelevanten modernen Gas(heiz)kraftwerke zu Gunsten von klimaschädlichen Kohlekraftwerken zunehmend vom Netz gehen, stellt hier das Hauptproblem dar. 5. Abschließend wird der bundespolitische Handlungsbedarf formuliert, um dem Stellenwert der KWK im Spannungsfeld zwischen Strommarkt und Energiewende künftig besser gerecht werden zu können. Zur Verdeutlichung einzelner Problemlagen und Handlungsoptionen sollen die an zahlreichen Stellen angeführten Praxisbeispiele einen Beitrag leisten. |
| Abstract: | This Wuppertal Paper addresses the following questions: How important are municipalities for the energy transition? What are the specific contributions of public utilities? This is especially important to note that local combined heat and power plants (CHP plants) are an important complement to the development of renewable energy sources and that municipal CHP systems now provide a significant contribution to ensuring the residual load. In addition, it comes to the main question, which make it difficult environment, the role of public utilities as key actors in the energy revolution, and especially as the operator of CHP plants. Against the background of the problem outlined above and taking into account of the key questions this Wuppertal Paper covers the following five topics: 1. The complex and extremely dynamic regulatory framework for public utilities shows that constant adjustments are needed in order to be economically active for a long term. 2. Here, the importance of public utilities for municipal energy policy is worked out. The central prospects of energy efficiency, decentralized combined heat and power plants and renewable energy play an important role. On the one hand this is a reason for municipal decisionmakers to increase remunicipalisation and on the other hand provides opportunities for public services to develop new business cases in the energy sector. 3. The energy-economic importance of public utilities is subsequently shown in relation to their decentralized and democratic legitimacy control as a municipal company. The rediscovery of the possibilities of local energy policy in Germany led to a veritable boom in establishing new public utilities. The reason for this is, that policy maker can use their own company to improve the possibilities on energy issues. The motives for the establishment of municipal utilities are primarily energy and climate policy and economic nature. So far, the importance of Cogeneration for climate protection and the success of the energy transition was paid too little attention. Therefore, it is also shown in this Wuppertal Paper that cogeneration play a complementary role with renewable energy and are an important component for the development of intelligent electicity networks. For municipal utilities aspects of the cogeneration expansion and load management also play an important economic perspective. 4. In an energy-economic problem outline of the economics of CHP, the current situation is represented in the field of power generation by conventional power plants in general and the CHP in particular. That the systemically important modern gas (thermal) power plants shall be in favor of environmentally harmful coal power plants increasingly from the network represents the main problem, which leads to the formulation of the nationwide need for political action in the last step. 5. Finally, the deduction of policy recommendations are formulated. In the interplay between the electricity market and the targets of the "German Energiewende" (energy transformation) it needs to be clarified which market structures promote the combined heat and power generation. To clarify individual problems and options for action, there are similar practices in many places. |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:wuppap:188&r=env |
| By: | Timothy Laing |
| Abstract: | This paper examines the impact of electoral cycles and the introduction of Reducing Emissions from Deforestation and Degradation (REDD+) policy upon the holding of small-scale mining property rights in Guyana. Mining is both the major cause of deforestation and the main economic activity in the country. A simple model of the incentives to hold mining property rights is developed and tested using a unique data-set of small-scale mining property rights data. Econometric techniques are used to test the findings of the model, concluding that the number of mining rights issued fall after election years, with the number rescinded rising. The introduction of REDD+ in Guyana also seems to have increased the number of mining claims being relinquished, and reduce the number being issued. The findings highlight the importance of political economy events in the evolution of small-scale mining activity, and show some evidence that the introduction of a REDD+ framework in Guyana has impacted the main driver of deforestation, despite the absence of specific policy targeting the sector. |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp181&r=env |
| By: | Douglas J. Crookes (Department of Economics, University of Pretoria); James N. Blignaut (Department of Economics, University of Pretoria) |
| Abstract: | Rhino populations are at a critical level and new approaches are needed to ensure their survival. This study conducts a review and categorisation of policies for the management of rhinos. Twenty seven policies are identified and classified into in situ (reserve based) and ex situ (market based) policies. The policies are then evaluated based on four target areas: poachers/hunters; consumers; intermediaries and the game reserves themselves. The study finds that protected areas management policies seem most beneficial in the short run, in particular the enforcement of private property rights over resource utilisation, as well as the establishment of wildlife sanctuaries that act as sustainable breeding grounds for rhino populations. |
| Keywords: | Rhino, economics, property rights, tragedy of the commons |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:201513&r=env |
| By: | Hubeau, Marianne; Mondelaers, Koen; Coteur, Ine; Marchand, Fleur L.; Lauwers, Ludwig |
| Abstract: | Due to pressures such as climate change, globalization, price volatility and scarcity of natural resources, our agri-food chain is urged to make a transition towards more sustainable production. How to organize such a transition, given the various stakeholders involved, and how to monitor progress still remain important challenges. This paper presents a new conceptual framework that follows an integrated chain approach to help address these challenges. First, it tackles the complex ecological and socio-economic challenges along the chain and its members (agriculture and food industries), and second, allows for decision support to chain members and policy. This framework combines two existing theoretical frameworks. The first framework is global chain value analysis (GCVA) of Gereffi (2005) which has its roots in institutional economics. GCVA categorizes five governance types of value chains (markets – modular – relational – captive – hierarchy) based on three variables: (i) the complexity of information and knowledge transfer required to sustain a particular transaction, (ii) the ability to regulate transactions, and (iii) the capabilities of actual and potential suppliers. The second framework, which was first formulated in ecological economics, extends the set of traditional economic resources to various forms of capital in the production system. These are natural (land, water, …), manufactured (buildings, machinery, ...), human (labour, skills,…), and social capital (networks,…). The economic system is fully embedded in the social system which in turn is embedded within the finite ecological system. Throughput of natural, social, human, and manufactured capital allows for the description of agri-food systems in terms of the maximal sustainable use of their stocks and flows. These two frameworks can be combined to perform an integrated system analysis of the agri-food chain, including the governance structures and the boundary conditions for the various types of capital. This paper describes this new conceptual framework illustrated by means of a case study of the agri-food chain in Flanders, Belgium. |
| Keywords: | Global value chain analysis, ecological economics, agri-food chain, sustainability, Agribusiness, Food Consumption/Nutrition/Food Safety, |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi14:199340&r=env |
| By: | Alexander Zerrahn; Wolf-Peter Schill |
| Abstract: | We develop a dispatch and investment model to study the role of power storage and other flexibility options in a greenfield setting with high shares of renewables. The model captures multiple system values of power storage related to arbitrage, dispatchable capacity, and reserves. In a baseline scenario, we find that power storage requirements remain moderate up to a renewable share of around 80%, as other options on both the supply side and demand side also offer flexibility at low cost. Yet storage plays an important role in the provision of reserves. If the renewable share increases to 100%, the required capacities of power storage and other technologies increase strongly. As long-run parameter assumptions are highly uncertain, we carry out a range of sensitivity analyses, for example, with respect to the costs and availabilities of storage and renewables. A common finding of these sensitivities is that – under very high renewable shares – the storage requirement strongly depends on the costs and availability of other flexibility options, particularly on biomass availability. We conclude that power storage becomes an increasingly important element of a transition towards a fully renewable-based power system. Power storage gains further relevance if other potential sources of flexibility are less developed. Supporting the development of power storage should thus be considered a useful component of policies designed to safeguard the transition towards renewables. |
| Keywords: | Power storage, flexibility options, renewable energy, energy transition |
| JEL: | Q42 Q47 Q48 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1457&r=env |
| By: | Mikkola, Minna; Post, Anna |
| Abstract: | School meals, served free for young people at primary and secondary education in Finland and Sweden, imply the welfare state’s effort at being responsible for the wellbeing of young people. This aim is very concretely expressed by the provision of statutory school meals which satisfy about one third of daily nutritional needs, offer a broad food cultural selection of meals with different ingredients and are meant to introduce children to table manners (Finnish National Board of Education, 2008; Lintukangas et al., 2008; Valtion ravitsemusneuvottelukunta, 2008). This ‘proper meal’ (Murcott, 1982) additionally reflects strongly the scientific view on nutrition (Valtion ravitsemusneuvottelukunta, 2008), and thereby connects with European historical challenges to enhance the poor nutrition status of children from families of limited means (Ahonen, 2003; Morgan and Sonnino, 2008; Spigarolo et al., 2010). The welfare state thus enters the sphere of responsibility of the family for their children (Rothstein, 1996), as it eases parental care by removing the cost and effort of meal provision from the family to the public actor. This school meal system thus not only aims to offer collateral support for learning but to promote healthy eating as a condition for public health. Currently, the focus of school catering aims to expand from the individual health to environmental health and even wider to sustainability (Morgan and Sonnino, 2008). This view has been evident in public caterers’ efforts across Finland (Mikkola, 2009a) as well as in individual rectors’ work for joining programs such as the Green Flag, entailing occasionally the provision of organic food as a proxy to sustainability (Mikkola, 2009b). These interests also draw on Union and national level policy support (ICLEI, 2008; Ministry of Environment, 2009) whereby the school meal becomes “a prism” of sustainability interests (Morgan and Sonnino, 2008), promoted by public actors (Mikkola, 2009; Morgan and Sonnino, 2008; Spigarolo et al., 2010). It is highly relevant to explore the impacts of these policies on children through activities such as public catering; ‘does it deliver’ the expected benefits in terms of increasing sustainability orientations by the children? This paper probes into children’s responses to school meals, with emphasis on the potential to learn healthy and sustainable eating practices. |
| Keywords: | Agribusiness, |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi14:199369&r=env |
| By: | Petterson Molina Vale |
| Abstract: | More cattle, less deforestation? Land use intensification in the Amazon is an unexpected phenomenon. Theories of hollow frontier, speculative behaviour and boom-bust all share the prediction that livestock production will remain largely extensive. Yet between 1996 and 2006 productivity of cattle grew by an astounding 57.5% in the average Amazon municipality. Does rising land productivity of cattle increase deforestation? I use secondary data and spatial econometrics to look for evidence of a positive relation between cattle intensification and deforestation (‘rebound effect’). The reduced-form model I employ is based on a spatial econometric specification by Arima et al. (2011) and uses panel data at the municipality-level. I show that mounting productivity in consolidated areas has been associated with lower deforestation both in frontier and consolidated municipalities. This suggests that any process of out-migration spurred by the rising productivity is insufficient to have a positive impact on deforestation. |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp174&r=env |
| By: | Ghazouani, W.; Molle, F.; Swelam, A.; Rap, E.; Abdo, A. |
| Keywords: | Case studies; Profitability; Cost benefit analysis; Pumps; Drainage water; Food security; Irrigated farming; Irrigation water; Yields; Crop management; Conflict; Adaptation; Farmers; Canals; Deltas; Water availability; Water scarcity |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:iwt:rerpts:h046836&r=env |
| By: | Dumortier, Jerome |
| Abstract: | This paper evaluates the effect of agronomic uncertainty on bioenergy crop production as well as endogenous commodity and biomass prices on the feedstock composition of cellulosic biofuels under a binding mandate in the United States. The county-level simulation model focuses on both field crops (corn, soybean, and wheat) and biomass feedstocks (corn stover, wheat straw, switchgrass, and miscanthus). In addition, pasture serves as a potential area for bioenergy crop production. The economic model is calibrated to 2022 in terms of yield, crop demand, and baseline prices and allocates land optimally among the alternative crops given the binding cellulosic biofuel mandate. The simulation scenarios differ in terms of bioenergy crop type (switchgrass and miscanthus) and yield, biomass production inputs, and pasture availability. The cellulosic biofuel mandates range from 15 to 60 billion liters. The results indicate that the 15 and 30 billion liter mandates in the high production input scenarios for switchgrass and miscanthus are covered entirely by agricultural residues. With the exception of the low production input for miscanthus scenario, the share of agricultural residues is always over 50% for all other scenarios including the 60 billion liter mandate. The largest proportion of agricultural land dedicated to either switchgrass or miscanthus is found in the Southern Plains and the Southeast. Almost no bioenergy crops are grown in the Midwest across all scenarios. Changes in the prices for the three commodities are negligible for cellulosic ethanol mandates because most of the mandate is met with agricultural residues. The lessons learned are that (1) the share of agricultural residue in the feedstock mix is higher than previously estimated and (2) for a given mandate, the feedstock composition is relatively stable with the exception of one scenario. |
| Keywords: | agricultural residues, crop prices, land use, Miscanthus, pasture, switchgrass, Crop Production/Industries, Land Economics/Use, Resource /Energy Economics and Policy, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iuspea:198707&r=env |
| By: | Kertész, Zsófia; Hegyi, Adrienn; Stolz, Hanna; Jahrl, Ingrid; Sebők, András; Garibay, Salvador; Rota, Cosimo; Zanasi, Cesare |
| Abstract: | Long, complex and globalised food chains often pose major challenges in terms of the sustainability of their environmental, economic and social impacts. The aim of this study was to gain a better understanding of the sustainability of the beef and soy supply chains in Latin America and the European Union (EU). Within an FP 7 project called SALSA, we explored the attitudes towards, preferences for, and awareness of specific sustainability aspects of supply chains from the perspective of non-business and business stakeholders as well as consumers. |
| Keywords: | supply chain LA and EU, sustainability, Agribusiness, Farm Management, Food Consumption/Nutrition/Food Safety, |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi14:199066&r=env |
| By: | Alberto Cavaliere (Department of Economics and Management, University of Pavia); Mario Maggi (Department of Economics and Management, University of Pavia); Francesca Stroffolini (Universit`a di Napoli, Federico II) |
| Abstract: | We analyze rehabilitation investments in a regulated water industry with perfectly inelastic demand. We compare alternative organizational solutions for local provision (municipalization, corporatization and privatization), though subject to a common regulatory mechanism. We can then assess the effects of incentive regulation in public firms and find that even benvolent politicians always stick to the price-cap, in order to save on distortionary taxation. How- ever, incentives to invest result to be excessive only in private firms, as the cost of capital is accounted differently by public and private undertakings. We also provide a theory of mixed firms, based on strategic interaction be- tween politicians and managers, which contributes to endogenously explain partial privatization and minority participation by private stockholders. In this last case incentives to invest appear to be driven just by governance and ownership reasons. |
| Keywords: | price-cap regulation, mixed firms, partial privatization, water networks, inelastic demand, natural monopoly |
| JEL: | H42 L32 |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:pav:demwpp:demwp0098&r=env |
| By: | Heise, Heinke; Pirsich, Wiebke; Theuvsen, Ludwig |
| Abstract: | The process quality of food products is currently the subject of increased attention. In the area of meat production, public discussion has centered on perceived low standards of animal welfare. Besides an increase in legislative regulations, improved animal welfare standards are most frequently achieved through the establishment of so-called animal welfare labels. So far these labeling concepts have not been substantially evaluated in terms of how well they carry out their goal of improving process quality in agricultural animal husbandry. This paper will use a recognized list of criteria to evaluate selected animal welfare labels Results show that competing labels vary strongly regarding the improvement of process quality. This has far-reaching effects not only for consumers and other label users, but also for companies that want to enter the animal welfare segment of the meat market. |
| Keywords: | Animal welfare label, certification systems, process quality of food products, Agribusiness, Environmental Economics and Policy, Food Consumption/Nutrition/Food Safety, |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi14:199057&r=env |
| By: | Zander, Katrin |
| Abstract: | With the introduction of the mandatory EU organic logo for all organic food products in 2010 the European Commission aimed at supporting a sustainable development and the effective functioning of the internal market for organic food. This approach presupposes consumers’ knowledge of the logo and their understanding of its meaning. By means of an online survey with 3000 participants in 6 European countries, knowledge of the logo and attitudes towards organic farming and European labelling as well as organic food purchase behaviour and socio-demographic indicators were elicited. The results indicate that knowledge of the logo is low. Only about 15% of all respondents knew its meaning. A binary logistic regression revealed that knowledge of the logo is higher among consumers who regularly buy organic food, who have good knowledge on the principles of organic farming and who consider freedom of chemical residues, of synthetic additives and organic production as important features of a high quality product. High education has a positive impact on the awareness of the logo, while age has a negative one. Large differences in knowledge exist between countries: the probability to know the EU logo is highest in Estonia and in Poland. Generally, knowledge of the EU organic logo is such low that the achievement of its purpose is doubted. Reasons are supposed to be the limited self-explanatory content of the logo as well as lacking awareness, resp. promotion campaigns. |
| Keywords: | Organic farming, labelling, trust, product quality, Agribusiness, Food Consumption/Nutrition/Food Safety, |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi14:199365&r=env |
| By: | Feucht, Yvonne; Zander, Katrin |
| Abstract: | Aquaculture is criticized for its potential negative impacts on the environment and for its consequences on fish welfare. One solution to these problems and a promising development track for the German aquaculture sector is the adoption of sustainable production methods. The establishment of a new market segment for domestic sustainable fish would accommodate to the trend towards ethical consumerism. So far, only little is known about the consumers’ knowledge and perception of sustainable aquaculture. Against this background the present contribution aims to explore perceptions and knowledge of German consumers with regard to sustainable aquaculture, its production systems and related labels by using focus groups. Recommendations for further communication of sustainable aquaculture to consumers are deduced. One central result is that consumers were mainly unfamiliar with aquaculture in general. However, they had some clear expectations towards sustainable aquaculture. The use of drugs should be minimized; production systems should be close to nature and should respect fish welfare. Obviously, participants deduced their understanding of aquaculture from theirs of terrestrial animal husbandry. The study also shows consumers’ low awareness of the existing sustainability labels on the German market. |
| Keywords: | Aquaculture, fish farming, sustainability, consumer, communication, label, Agribusiness, Food Consumption/Nutrition/Food Safety, |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi14:199347&r=env |
| By: | de Vega, Raúl Ernesto; Rajovitzky, Ariel Gustavo |
| Abstract: | La problemática ambiental se ha convertido en un asunto que involucra prácticamente a todos los componentes de la sociedad contemporánea. Se considera a la problemática ambiental como un factor actualmente insoslayable al referirse a las cuestiones de economía y desarrollo económico en general, con sus consiguientes repercusiones en el aspecto social. Reconocido el importante grado de vinculación que tienen las cuestiones ambientales con la economía y, en consecuencia, con las empresas, surge la necesidad de contar con información referida a dichas cuestiones. A nivel empresa, el principal sistema de información, la contabilidad, debería estar involucrado en la preparación de dicha información. Se propone que el reconocimiento contable de las cuestiones medioambientales es perfectamente realizable bajo las normas y los modelos contables actualmente vigentes, tanto a nivel nacional como internacional y se proponen criterios que se consideran básicos para la adecuada imputación y exposición contable de las cuestiones ambientales. |
| Keywords: | Contabilidad; Medio Ambiente; Responsabilidad Social; Empresas; |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:nmp:nuland:2132&r=env |
| By: | Claudio A Agostini (Escuela de Gobierno, Universidad Adolfo Ibáñez); Shahriyar Nasirov; Carlos Silva |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:uai:wpaper:wp_038&r=env |
| By: | Daniel Rondeau; Maurice Doyon; Pascal Courty; Alex Oswald |
| Abstract: | Ce rapport est le deuxième d’une série concernant l’évaluation expérimentale d’enchère à prix aléatoires appliquée aux droits d’exploitation de la forêt québécoise et fait suite au « Rapport I : Comparaison d’enchères multiples de premier et de deuxième prix » (Rondeau, Doyon et Courty, 2014). Rappelons que le résultat des enchères est une variable importante pour la détermination du prix de la matière ligneuse en forêt publique qui n’est pas transigée par enchère (environ 80 % du volume en forêt publique), la révélation des valeurs devient ainsi un élément de première importance. Cette série de rapports explore donc certaines variantes d’enchères afin de vérifier si la révélation de valeur est améliorée, tout en prenant en considération des paramètres tels que le profit de l’acheteur, le revenu du vendeur et l’efficacité économique (L’efficacité économique est le pourcentage du surplus capturé divisé par le surplus total théorique (optimal)). Alors que le rapport précédent s’est concentré à tester empiriquement, à l’aide de l’économie expérimentale, l’impact de l’élimination du prix de départ en relation avec la règle de deux mises. Ce rapport s’intéresse à la problématique d’obtenir la révélation de la valeur en situation d’acheteur unique. Les deux problématiques explorées sont les suivantes: 1) la vente par enchère à un seul acheteur d'un seul lot contenant deux essences valorisées à et respectivement; et 2) l'offre simultanée à un seul acheteur de deux lots distincts lorsqu'il est possible ou anticipé que l'acheteur potentiel attache une valeur sous-additive à l'obtention des deux lots. La valeur sous-additive provient de la substituabilité complète ou partielle des deux lots, pour des raisons de capacité de production limitées, par exemple. La valeur sous-additive se manifeste par , où est la valeur pour l'acheteur d'obtenir les deux lots, est la valeur d'acheter seulement le premier lot, et celle d'obtenir seulement le deuxième lot. Dans un premier temps, une revue de littérature est effectuée. Les éléments clés retenus sont : Qu’un prix de réserve non divulgué doit être perçu comme étant aléatoire par les acheteurs; L’enchère BDM est le seul mécanisme permettant des mises compétitives et la révélation de la valeur en présence d’un seul acheteur; Un prix de réserve aléatoire peut être considéré comme l'ajout d'une mise externe contre laquelle un acheteur doit faire compétition. Il peut donc, en contrepartie, réduire le nombre de lots vendus et affecter négativement l'efficacité économique de l'enchère;Les prix de réserve aléatoires sont généralement effectifs à accroître les revenus du vendeur;La distribution de laquelle sont tirés les prix de réserve aléatoires est une variable cruciale quant à la performance des enchères;Dans un environnement compétitif, l'efficacité attendue pour le vendeur avec un prix de réserve annoncé serait aussi élevée que sous un prix de réserve non divulgué, mais les revenus légèrement moindres;Pour un seul acheteur, il a été démontré que le BDM a le potentiel de révéler la valeur de participants en laboratoire. Par contre, ce résultat demande souvent une période d'apprentissage et d'expérience;Dans des comparaisons avec d'autres mécanismes avec les mêmes propriétés théoriques (offres à prendre ou à laisser; enchère Vickrey), le BDM semble produire des mises inférieures. La cause de ces différences n'est pas clairement identifiée. Dans un deuxième temps, nous nous intéressons à l’application du BDM à la vente d’un lot composé de deux essences ou plus (ou d’un bien ayant deux composantes ou plus). Bien que notre démonstration soit faite pour deux essences, et ce afin de simplifier l’analyse, celle-ci peut être généralisée à n essences. Nous constatons que ceci pose problème si l’objectif est la révélation des valeurs par essence. En effet, puisque l’attribution du lot se fait sur la valeur totale, toute combinaison sera optimale. Ceci ouvre la porte à des mises stratégiques telles que sous-déclarer et sur-déclarer . Afin de créer les incitatifs à révéler les valeurs par essence, nous développons donc le mécanisme de BDM-composé. Ce mécanisme génère une incertitude quant à la valeur totale ( ), permettant du fait de briser le processus d'agrégation et de forcer la révélation des valeurs individuelles. L’incertitude est créée en attribuant une probabilité que la quantité de l’essence (choix arbitraire) qu’un acheteur obtient ne soit pas 100 % du volume actuel disponible. Nous avons donc ici deux variables d’intérêt, soit β qui est la proportion de l’essence 2 qui sera attribuée (entre 0 % et 100 %) et P, la probabilité que cet évènement se produise. Notons qu’en théorie, la probabilité P et la proportion β peuvent être choisies arbitrairement proche de P=1 et β=1 sans affecter la fonction révélatrice de la valeur. Des simulations numériques du mécanisme BDM-composé indiquent qu’en théorie, le coût associé à induire la révélation de la valeur est très faible, sauf dans le cas où une fraction importante d’une des essences ait une probabilité de ne pas être disponible. Bien qu’elles demeurent faibles, selon nos simulations, les pertes de revenus et d’efficacité augmentent lorsque la probabilité de n’obtenir qu’une fraction d’une des essences augmente (P diminue) et lorsque la fraction allouée du lot partiel (β) diminue. Dans un troisième temps, une autre problématique potentielle est étudiée, soit l’offre de lots simultanés. Ainsi, un acheteur potentiel se voit offrir deux lots ne contenant qu'une seule essence chacun qu'il valorise individuellement à et . Par contre, s’il gagne les deux lots, un certain niveau de substituabilité peut faire en sorte que la valeur dont il tire des lots est . Suivant un développement théorique, nous démontrons que dans pareil cas il n’est pas optimal pour un acheteur de révéler sa valeur. Nous concluons donc que l'offre simultanée de plus d'un lot à un seul acheteur avec valorisation sous-additive détruit la capacité du BDM à induire une révélation de la valeur. Des simulations numériques indiquent toutefois que du point de vue de l’efficacité ou même du revenu, la performance des BDM simultanées en pareille circonstance n’est pas mauvaise. Afin de favoriser la révélation des valeurs en situation d’offre simultanée de deux lots, nous développons donc le mécanisme α-BDM. Dans le α-BDM, deux lots sont offerts à l'acheteur qui à l'opportunité de faire deux mises séparées. Or, en réalité une seule enchère BDM sera conduite pour un des deux lots. La façon de déterminer lequel des deux lots sera sélectionné peut être aléatoire ou reposer sur d’autres critères. Le fait que seulement une des deux enchères BDM sera conduite élimine les pertes (sous-additivité) potentielles auxquelles était précédemment exposé l'acheteur lorsque ce dernier pouvait faire transaction sur les deux lots. Ne sachant pas au préalable quel lot sera vendu et étant assuré de ne pas faire transaction sur les deux lots qui ont une valeur sous additive pour lui, ce mécanisme assure que les deux mises de l’acheteur sont indépendantes. Du fait, les incitatifs nécessaires à la révélation de la valeur sont rétablis. Notons que pour que les qualités théoriques du α-BDM soient maintenues, deux conditions doivent être respectées : 1- L’acheteur doit percevoir qu’une probabilité existe qu’il n’obtiendra pas le lot 1 (celui ayant la plus forte valorisation selon notre nomenclature). 2- Les prix aléatoires (prix de réserve) des deux enchères (lot 1 et lot 2) doivent provenir de la même distribution. Si ce n'était pas le cas, ceci ouvrirait la porte à des mises stratégiques de la part de l’acheteur, et ce, afin de maximiser son espérance de profits. Des simulations numériques avec différents niveaux de α (probabilité que seul le lot le plus valorisé soit obtenu) démontrent que dans le cas ou α tend vers 1, l’obtention de la révélation de la valeur entraîne peu de perte d’efficacité et de baisse des revenus. Les simulations numériques indiquent que les revenus de l' α-BDM demeurent plus élevés que les revenus de BDM standard avec lots simultanés lorsque la probabilité α>0,8. Au chapitre de l’efficacité, il faut cependant utiliser une probabilité α qui excède 0,95. Ces résultats indiquent donc qu'il est possible d'introduire un mécanisme qui incite la révélation de la valeur en situation d’enchères avec lots simultanés, et qui résulte à la fois en une augmentation de l'efficacité économique et des revenus. En conclusion, les mécanismes développés (BDM-composé et α-BDM) sont prometteurs, bien que relativement complexes. Nos simulations numériques et nos résultats expérimentaux indiquent une forte dépendance quant aux choix des distributions desquelles les valeurs et les prix de réserves sont tirés aléatoirement. Il est important de noter par ailleurs qu’il est possible de choisir des distributions qui favorisent différents critères de performance (efficacité, revenus, révélation des valeurs). Ce choix nécessite toutefois des arbitrages. Nous en identifions deux types, soit l’arbitrage entre l’efficacité économique (attribution de lots) et les revenus. Cet arbitrage est spécifique aux mécanismes développés. Le deuxième arbitrage, qui est généralisé au mécanisme de BDM, est entre l’importance d’obtenir la valeur de l’acheteur (révélation de la valeur) pour les équations de transposition et le revenu (l’acheteur paie moins que sa valeur). Dans ce dernier cas, rappelons que nous obtenons la valeur maximale, laquelle n’est pas déclarée dans, par exemple, une enchère de premier prix |
| Date: | 2015–03–11 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirpro:2015rp-05&r=env |
| By: | Martha A. Starr |
| Abstract: | Although there has been little economic research on 'ethical consumption' in a general sense, work on its various aspects is growing. This paper reviews economic research on ethical consumption, examining both demand-and supply-side aspects. It is argued that the most promising way to see ethical consumption through an economic lens is via models with heterogeneous consumers, in which some have strong intrinsic motivation to adopt ethical-consumption practices, others will adopt if they perceive a practice to be becoming a social norm and its extra costs are moderate, and others still will be impervious to it. Implications for the spread of ethical consumption and its ability to affect change are considered. |
| Keywords: | ethical consumption, consumption ethics, socially responsible consumption, corporate social responsibility, sustainable consumption, consumer behavior, pro-social behavior, consumer economics |
| JEL: | E21 D11 D12 A13 A12 Q5 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:amu:wpaper:2015-01&r=env |