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on Environmental Economics |
| By: | Olga Podkorytova; Yulia Raskina |
| Abstract: | Environmental Kuznets curve (EKC) describes the relationship between the economic growth and the environmental degradation. Some researchers assume that this nexus may be influenced by international trade. In this paper we estimated EKC for carbon dioxide emissions using panel data for 15 countries of the former Soviet Union spanning the period 1990-2011. We revealed positive dependence of the carbon dioxide emissions on export. We also found that foreign direct investment does not affect air pollution. |
| Keywords: | environmental Kuznets curve, former USSR, carbon emissions, panel data, trade turnover |
| Date: | 2014–12–31 |
| URL: | http://d.repec.org/n?u=RePEc:eus:ce3swp:0414&r=env |
| By: | Sitkina Kira (Department of Economics, Lomonosov Moscow State University); Solovyeva Sofya (Department of Economics, Lomonosov Moscow State University) |
| Abstract: | The article presents assessment of ecosystem services for National Park ”Lake Pleshcheevo”. |
| Keywords: | biodiversity conservation, environmental policy, benefits of natural services, ecosystem services |
| JEL: | Q50 Q51 Q57 |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:upa:wpaper:0018&r=env |
| By: | Luis F. Sanchez (Crawford School of Public Policy, The Australian National University); David I. Stern (Crawford School of Public Policy, The Australian National University) |
| Abstract: | There has been extensive analysis of the drivers of carbon dioxide emissions from fossil fuel combustion and cement production, which constituted only 55% of global greenhouse gas (GHG) emissions in 1970 and 65% in 2010. But there has been much less analysis of the drivers of greenhouse gases in general and especially of emissions of greenhouse gases from agriculture, forestry, and other land uses, which we call non-industrial emissions in this paper, that constituted 24% of total emissions in 2010. We statistically analyse the relationship between both industrial and non-industrial greenhouse gas emissions and economic growth and other potential drivers for 129 countries over the period from 1971 to 2010. Our analysis combines the three main approaches in the literature to investigating the evolution of emissions and income. We find that economic growth is a driver of both industrial and non-industrial emissions, though growth has twice the effect on industrial emissions. Both sources of emissions decline over time though this effect is larger for non-industrial emissions. There is also convergence in emissions intensity for both types of emissions but given these other effects there is no evidence for an environmental Kuznets curve. |
| Keywords: | energy technological innovation; product homogeneity; knowledge spillovers; love-for-variety effect |
| JEL: | Q54 Q56 |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:een:ccepwp:1502&r=env |
| By: | Das, Rituparna; Das, Mononita |
| Abstract: | Amidst the perils of industrialization in the forms of environmental impacts of mining and use of energy and destruction of urban biodiversity, it became imperative for the Latin American countries to design environmental policies in accordance with the respective historicity, demography, and polity of each nation. But in resolving a tussle between eco-environmental maintenance and vigorous industrialization while trying to find a choice between eco-friendly environment or prosperous economic growth, the Indian judiciary accepted that neither the eco-environment alone nor the industrial and economic growth by itself will meet the human needs in the global competition. It is necessary for the policy makers in framing any environmental policy or for legislators in enacting any environmental law to have an appropriate frame of environmental impact assessment. In this context, this study sheds light on the fusion of legal and economic elements with regard to deforestation in Brazil and water pollution in India. Part I of this study is theoretical modeling and Part II is estimation of the models. This paper is Part I. |
| Keywords: | Externality, Pigovian Tax, Subsidy, Deforestation, Water Pollution, Social Cost |
| JEL: | K32 |
| Date: | 2014–12–31 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:63339&r=env |
| By: | Christoph Böhringer (University of Oldenburg, Department of Economics); Brita Brita Bye (Statistics Norway, Research Department); Taran Fæhn (Statistics Norway, Research Department); Knut Einar Rosendahl (Norwegian University of Life Sciences, School of Economics and Business) |
| Abstract: | Climate effects of unilateral carbon policies are undermined by carbon leakage. To counteract leakage and increase global cost-effectiveness carbon tariffs can be imposed on the emissions embodied in imports from non-regulating regions. We present a theoretical analysis on the economic incentives for emission abatement of producers subjected to carbon tariffs. We quantify the impacts of different carbon tariff designs by an empirically based multi-sector, multi-region CGE model of the global economy. We find that firm-targeted tariffs can deliver much stronger leakage reduction and higher efficiency gains than tariff designs operated at the industry level. In particular, because the exporters are able to reduce their carbon tariffs by adjusting emissions, their competitiveness and the overall welfare of their economies will be less randomly and less adversely affected than in previously studied carbon tariff regimes. This beneficial distributional impact could facilitate a higher degree of legitimacy and legality of carbon tariffs |
| Keywords: | carbon leakage, border carbon adjustment, carbon tariffs, computable general equilibrium (CGE) |
| JEL: | Q43 Q54 H2 D61 |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:old:dpaper:376&r=env |
| By: | Nicolò Barbieri (Deptartment of Economics. University of Bologna, Italy.) |
| Abstract: | This paper aims to shed light on the drivers that encourage a shift from incumbent internal combustion engine technologies towards low-emission vehicle technologies. We emphasise the role of fuel prices, one of the main drivers of environmental innovation, and other features of the technology space (such as technological proximity), in impacting technological dynamics and fossil fuel technological lock-ins. Specifically, we investigate whether green technological efforts come at the expense of other environmental or non-environmental inventive activities. In doing so, we employ Self-Organised Maps (SOMs) to detect the main technological domains exploited by the automotive industry during the period 1982-2008, using triadic patent families as a proxy for technological efforts pursued in each technological field. On the one hand, we test whether these drivers foster the substitution of non-green patents with green ones. On the other, we analyse if they favour substitution between technological efforts related to alternative vehicles, de facto influencing low-emitting vehicle competition. Our findings suggest that higher tax-inclusive fuel prices (used as a proxy for carbon tax) are effective in redirecting patenting activities from non-green to green technological fields. In addition, we observe a similar impact when we focus on green technological fields. Although this result may involve the risk of potential lock-in into sub-optimal substituting technologies, there are insights that the competition within the environmental technological domain mainly regards technological efforts spent on greening conventional cars and developing low-emission vehicles. |
| Keywords: | Environmental technologies, Self-Organising Maps, Crowding out, Fuel prices, Patent data |
| JEL: | O32 Q55 L62 |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:0615&r=env |
| By: | Anna Delgado; Diego J. Rodriguez; Antonia A. Sohns |
| Keywords: | Environment - Climate Change Mitigation and Green House Gases Energy - Energy and Environment Science and Technology Development - Engineering Energy - Energy Production and Transportation Environment - Environment and Energy Efficiency |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:21576&r=env |
| By: | ZhongXiang Zhang (School of Economics, Fudan University) |
| Abstract: | The Chinese central government has approved the seven pilot carbon trading schemes. These seven pilot regions are deliberately selected to be at varying stages of development and are given considerable leeway to design their own schemes. These pilot trading schemes have features in common, but vary considerably in their approach to issues such as the coverage of sectors, allocation of allowances, price uncertainty and market stabilization, potential market power of dominated players, use of offsets, and enforcement and compliance. This article explains why China opts for emissions trading, rather than carbon or environmental taxes at least initially, discusses the key common and varying features of these carbon trading pilots and their first-year performance, draws the lessons learned, discusses the potential pathways for evolution of regional pilot carbon trading schemes into a nationwide carbon trading scheme, and raises fundamental issues that must be addressed in order to make such an emissions trading scheme to work reliably and effectively and with an increasingly expanded coverage and scope Keywords: Pilot carbon trading schemes; environmental taxes; compliance; carbon offsets; energy prices; China |
| JEL: | H23 O13 P28 Q43 Q48 Q52 Q54 Q58 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:een:ccepwp:1503&r=env |
| By: | Marcellino Madrigal; Rhonda Lenai Jordan |
| Keywords: | Environment - Climate Change Mitigation and Green House Gases Macroeconomics and Economic Growth - Climate Change Economics Infrastructure Economics and Finance - Infrastructure Economics Geographical Information Systems Energy - Energy Production and Transportation |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:21575&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 (Research Department, Statistics Norway, Oslo, Norway) |
| 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: | 2015–03–30 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nlsseb:2015_009&r=env |
| By: | Adong, Annet |
| Keywords: | Crop Production/Industries, Environmental Economics and Policy, International Development, Land Economics/Use, |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:200412&r=env |
| By: | Commander,Simon John; Nikoloski,Zlatko Slobodan; Vagliasindi,Maria |
| Abstract: | It is widely accepted that the costs of underpricing 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 countries in the Middle East and North Africa, the Arab Republic of Egypt (transport) and the Republic of Yemen (agriculture). The focus is mainly on the costs associated with congestion and pollution, as well as the impact of underpriced 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 developed countries. By building on earlier research, as well as employing the United Nations ForFITS model, the paper provides indicative estimates of the external costs of energy subsidies, as manifested in congestion and pollution. The estimates using simulations indicate that these costs could be materially reduced by elimination or reduction of energy subsidies. The paper also describes the impact of energy subsidies on water consumption in a region where water resources are particularly limited. The findings provide further evidence of the adverse and significant consequences of subsidizing energy. |
| Keywords: | Transport and Environment,Energy Production and Transportation,Transport Economics Policy&Planning,Climate Change Economics,Climate Change Mitigation and Green House Gases |
| Date: | 2015–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7227&r=env |
| By: | Andrea Rampa (Dipartimento di Economia Diritto e Istituzioni. University of Tor Vergata, Italy.); Alessio D'Amato (Deptartment of Economics and Management. University of Tor Vergata, Italy.) |
| Abstract: | The aim of this paper is to provide a theoretical model in order to analyse environmental policy under uncertainty regarding the possibility of a natural disaster. We adopt a two-periods analytical model, to investigate two different institutional settings, one featuring a myopic social planner, choosing emissions in each time period to maximize current net bene?ts, and one featuring a forward-looking planner, who maximizes the expected net present value of welfare across the two periods. As in Barrett (2013), uncertainty regards a threshold pollution level that, if violated, triggers a natural disaster. We conclude that under a myopic social planner welfare may increase or decrease over time, while in a non-myopic scenario welfare always increases across periods. Also, our model supports the idea that a myopic social planner pushes emissions closer to the edge of the natural disaster, but then, if the latter does not take place in the ?rst period, bene?ts from having done that in terms of welfare in the second period. Introducing a stochastic decay rate, we also show that the environment may reward (punish) myopic behaviour ex post. Finally, the comparison between myopic and forward looking settings is not straightforward: this depends on a risk spreading vs. information learning trade off. |
| Keywords: | Catastrophe, Uncertainty, Environmental Policy, Risk, Natural Disaster |
| JEL: | Q54 O13 Q38 |
| Date: | 2015–02 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:0315&r=env |
| By: | Philippe Delacote; Elizabeth J. Z. Robinson; Sébastien Roussel |
| Abstract: | This paper analyses the impact of several avoided deforestation policies within a patchy forested landscape. Central is the idea that deforestation choices in one area influence deforestation decisions in nearby patches. We explore the interplay between forest landscapes comprising heterogeneous patches, localised spatial displacement, and avoided deforestation policies. Avoided deforestation policies at a landscape level are respectively: two Payment for Environmental Services (PES) policies, one focused on deforestation hotspots, the second being equally available to all agents; a conservation area; and, an agglomeration bonus. We demonstrate how the "best" policy, in terms of reduced leakage, depends on landscape heterogeneity. Agglomeration bonuses are shown to be more effective where there is less landscape heterogeneity, whilst conservation areas are most effective where there is more spatial heterogeneity. |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:lam:wpaper:15-06&r=env |
| By: | Michallet, Benjamin; Gaeta, Giuseppe Lucio; Facchini, Francois |
| Abstract: | Why do parties offer environmental policies in their political programs? While a number of papers examine the determinants of citizens’ pro-environmental behaviour, we know little about the extent to which political parties adjust their platform towards environmentalism. We investigate this process through data provided by the Manifesto Project Dataset (CMP) for 20 European countries over the period 1970-2008. Following the literature on public concern towards environment, we examine economic, environmental and political determinants. Our findings provide evidence that political parties’ environmental concern is strongly correlated with their political ideology and with country-level economic conditions. |
| Keywords: | environmental concern, environmental attitudes, political parties, electoral manifestos |
| JEL: | D78 Q58 Z13 |
| Date: | 2015–03–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:63335&r=env |
| By: | Tulkens, Henry (Université catholique de Louvain, CORE, Belgium) |
| Abstract: | In a game with positive externalities, such as e.g. the standard environmental externality game used in the analysis of international environmental agreements, the solutions having the property of coalitional internal stability, when they exist, are compared in this paper with the solutions with the property of ?-core stability. Key instruments for that comparison are the notions of stable imputations, on the one hand, and on the other, of partial agreement Nash equilibria relative to a coalition as they result from unacceptable, i.e. unstable imputations. The relation between internal and core stable solutions is claimed to be one of compatibility, the former concept complementing the latter in the games where internally stable solutions exist. But this class of games is more restricted than the one for which only ?-core solutions exist. The argument is first presented graphically, then analytically. The relations here exhibited between core and internal forms of stability arouse some concluding thoughts on efficiency, coalitional stability, and on motivations in sharing the surplus generated by cooperation in international environmental issues |
| Keywords: | environmental externalities, game theory, coalitions, core, internal stability |
| JEL: | C7 H4 H87 Q5 |
| Date: | 2014–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:cor:louvco:2014058&r=env |
| By: | Alessandra Colombelli; Jackie Krafft; Francesco Quatraro |
| 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:feu:wfewop:y:2015:m:3:d:0:i:88&r=env |
| By: | Alessandra Colombelli; Jackie Krafft; Francesco Quatraro (University of Turin) |
| 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. |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:uto:dipeco:201516&r=env |
| By: | World Bank |
| Keywords: | Agricultural Knowledge and Information Systems Agriculture - Agricultural Research Agriculture - Climate Change and Agriculture Rural Development Knowledge and Information Systems Science and Technology Development - Science of Climate Change Rural Development Science and Technology Development - Climate and Meteorology |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:21676&r=env |
| By: | William Acworth; Nils May; Karsten Neuhoff |
| Abstract: | The European Union Emission Trading Scheme (EU ETS) has been implemented to provide a common climate policy instrument across European Union countries, to contribute to a credible investment perspective for low-carbon investors and support further European integration of energy markets. Thus the EU ETS is a key element of the European Energy Union.However, given the accumulation of a large surplus in the EU ETS, there is now a consensus between the EuropeanCommission, the European Council and the European Union Parliament (ENVI vote) that a Market Stability Reserve (MSR) needs to be implemented. The Latvian Presidency announced on March 26th a mandate to start trilogue negotiations onthe implementation of an MSR. Yet there remains discrepancy on the design parameters which will determine how quickly the MSR can respond to the surplus and restore consistency, price credibility, and robustness for investors of EU ETS.If Europe misses the opportunity to secure a timely restoration of EU ETS, then individual member states are likely to implement national measures to deliver energy and climate objectives. For example Germany has started to debate a Carbon Price add on for very carbon intensive power production to secure modernization and efficient power production should the EU ETS price not recover by the end of the decade. In this Roundup, we explore five design elements of the MSR that will determine the speed at which the most prominent European energy and climate policy instrument, the EU ETS, can deliver consistency, price credibility, and robustness for investors. The discussion of these design elements in the trilogue process that begins today will show how serious EU member states are not only about Climate Policy but equally about the Energy Union as a common policy framework to enhance investment and energy security across Europe. |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwrup:59en&r=env |
| By: | Rikard FORSLID; OKUBO Toshihiro; Mark SANCTUARY |
| Abstract: | This paper uses a monopolistic competitive framework with many sectors to study the impact of trade liberalization on local and global emissions. We focus on the interplay of the pollution haven effect and the home market effect and show how a large-market advantage can counterbalance a high emission tax, implying that trade liberalization leads to lower global emissions. Generally, our results suggest that relative market size, the level of trade costs, the ease of abatement, and the degree of product differentiation are relevant variables for empirical studies on trade and pollution. |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:15041&r=env |
| By: | Patil, Kiran Kumar R; Chandrakanth, MG; Bhat, Mahadev G; Manjunatha, AV |
| Abstract: | More than 65 percent of the geographical area in India comprise the hard rock areas where the recharge of groundwater is meagre (5 to 10% of the rainfall), while the extraction for irrigation has exceeded the recharge in several areas, leading to secular overdraft. Neither the farmers nor the policy makers have paid adequate attention towards sustainable path of extraction. This article is a modest attempt to demonstrate the sustainable path using Pontryagin‟s optimal control application in order to impress upon the policy makers the need for groundwater regulation. This study is based on primary data obtained from farmers with groundwater irrigation in hard rock areas of Deccan Plateau. Results indicated that discounted net benefit realized per well at steady state equilibrium on borewell recharge farms was Rs. 97201 ($1620) reached in 25 years; on drip irrigation farms cultivating broad spaced crops was Rs. 163347 ($2722) reached in 17 years. Thus, farmers who recharge borewell on the farm realize the service of borewell for larger number of years realizing sustainable incomes than their counterparts using drip irrigation, without performing on farm recharge. However the economic performance of both types of farms are substantially superior over farms adopting myopic extraction. The study disproved the operation of Jevons paradox. |
| Keywords: | Environmental Economics and Policy, Health Economics and Policy, International Development, Land Economics/Use, |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:200417&r=env |
| By: | Prudence Dato (IREGE, University Savoie Mont Blanc.) |
| Abstract: | In this paper, we analyze the optimal energy transition of a two-sector economy (energy and final goods) with exhaustible oil reserves, a renewable source of energy and a pollution threat. The latter corresponds to a pollution threshold above which a part of the capital is lost (following flooding for instance). Part of the energy is used as energy services by a representative consumer through a CRRA utility function and the other part is used as input in a Leontief production function to produce final goods. Moreover, we assume that both energy sources are complementary. We use the optimality conditions as in Boucekkine et al. (2013) to show that the optimal energy transition path may correspond to a corner regime in which the economy starts using both resources, then crosses the pollution threshold and therefore loses a part of its capital. At the end, the economy never adopts only renewable energy. This result is in line with the asymptotic energy transition arguments stating that the transition to "clean" energy may happen only in the long run. We extend the present model to allow for additional investment in energy saving technologies. Our main results show that this additional investment favours the energy transition in the sense that it increases the time within which the economy may experience the catastrophe and the welfare of the society. For policy implications, economic instruments such as taxes on "dirty" energy, subsidies on "clean" energy or incentives for energy saving technologies need to be implemented in order to promote the energy transition. But those economic instruments should be carefully designed in line with the asymptotic energy transition result. |
| Keywords: | Energy, pollution, irreversibility, switch |
| JEL: | Q30 Q53 C61 |
| Date: | 2015–02 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2015.05&r=env |
| By: | Alessandro Antimiani (National Institute of Agricultural Economics (INEA), Italy); Valeria Costantini (Department of Economics, Roma Tre University, Italy); Elena Paglialunga (Department of Economics, Roma Tre University, Italy) |
| Abstract: | A dynamic energy-economic CGE model is used to analyse how sensitive simulation results are to alternative values assumed by several types of elasticity of substitution. Substitutability in the energy mix is analysed by taking into account the nest structure of the CGE model in the energy module. Input substitutability in the production function is tested for the relationship between capital and energy in different manufacturing sectors. The simulation exercise reveals that the model produces highly differentiated results when different sets of elasticity parameters are adopted. A reduction in the flexibility of energy substitution possibilities makes abatement efforts more expensive at the general level. Moreover, this restriction generates changes in the distribution of costs associated with abatement efforts across regions. The direct implication derived from this work is that in order to use CGE forecasting models to predict the costs and feasibility of climate policies, they must be integrated with empirically estimated behavioural parameters at the highest possible disaggregation level. |
| Keywords: | sensitivity analysis; CGE model; elasticity of substitution; climate policy |
| JEL: | C68 D58 L60 Q47 Q54 |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:0515&r=env |
| By: | Zachary Brown; Bastien Alvarez; Nick Johnstone |
| Abstract: | A striking variety of policy instruments are used in Victoria, Australia to achieve conservation objectives. These include highly active voluntary programmes, a variety of conservation grants, and a reverse auction for the provision of ecosystem services, known as EcoTender. An open question regarding such payments for ecosystem services (i.e. grants and tenders) is whether they achieve ‘additionality.’ That is, do they lead to conservation above the status quo? Critics of these instruments allege that the majority of funds for such programmes are merely paying individuals for conservation work they are already doing. A related concern is that monetary incentives for conservation may skew landowners’ motives more towards monetary concerns, and erode nature conservation values. The practical implication of this ‘moral crowding out’ is that, if funding is ever suspended for conservation grants or EcoTenders, then conservation may decline below its original, pre-programme level. To investigate both of these concerns, a telephone survey was conducted with 266 farmers in Victoria. Analysis of the data suggests that there is a strong correlation between stated levels of own-property conservation effort and activity in local volunteer groups, as well as having received a conservation grant or tender. However, this does not address the additionality question, because landowners already engaged in such efforts may be more likely to be awarded grants or tenders. This presents an endogeneity problem. While panel data are ultimately necessary to answer this question definitively, application of instrumental variables methods provides some insight. The methods imply that grants and tenders may achieve ‘additionality’ only when they reach those otherwise uninvolved with conservation programmes, in particular those not volunteering. This suggests that conservation tenders can improve their cost-effectiveness by increasing participation among those not already volunteering in other conservation programmes. Meanwhile, there is fairly strong evidence in the data for the potential for moral-crowding-out; tender or grant receipt appears to shift stated motivations towards more monetary concerns. However, the practical implications of this finding – that is, whether this erosion of attitudes translates in blunted conservation efforts – remain unknown.<BR>Des instruments d’une étonnante diversité sont utilisés dans l’État de Victoria, en Australie, pour atteindre les objectifs de protection de l’environnement. Il existe ainsi des programmes volontaires très actifs, tout un éventail de subventions et un système d’enchères inversées appliqué à la fourniture de services écosystémiques, appelé EcoTender. Toutefois, une question se pose au sujet de ces mécanismes (subventions et appels d’offres) : répondent-ils au critère d’« additionnalité » ? Autrement dit, la protection qu’ils assurent est-elle supérieure à celle qui existe dans le statu quo ? D’après leurs détracteurs, les fonds versés en application de ces instruments ne font que rétribuer, dans leur majeure partie, des activités de protection de l’environnement que leurs bénéficiaires exercent déjà. De même, on peut craindre que les incitations pécuniaires ne faussent les motivations des propriétaires fonciers et que les mobiles financiers ne prennent le pas sur la portée morale de la sauvegarde de la nature. Concrètement, cette « éviction de la motivation morale » a pour effet que, si le financement des subventions ou d’EcoTender est interrompu à un moment ou un autre, la protection risque de descendre en dessous du niveau où elle s’établissait avant le recours à ces instruments. Pour évaluer le bien-fondé de ce scepticisme, une enquête téléphonique a été menée auprès de 266 agriculteurs du Victoria. L’analyse des données indique qu’il existe une forte corrélation entre, d’une part, le niveau qu’un propriétaire attribue aux activités de protection qu’il mène sur sa propriété même et, d’autre part, ses activités bénévoles dans les associations locales et le fait qu’il ait bénéficié d’une subvention ou ait remporté un appel d’offres. Néanmoins, cela ne répond pas à la question de l’additionnalité, dans la mesure où les propriétaires fonciers qui protègent déjà le milieu sont peut-être plus susceptibles de recevoir des subventions ou de gagner un appel d’offres. Nous rencontrons ici un problème d’endogénéité. Des données de panel sont en dernière analyse nécessaires pour trancher la question, mais le recours à la méthode des variables instrumentales apporte un éclairage. Dans ce cas, on suppose que les subventions et les appels d’offres ne remplissent le critère d’additionnalité que s’ils bénéficient à ceux qui ne participent pas à des programmes de protection de l’environnement dans un autre cadre, en particulier à ceux qui ne font pas de bénévolat. Il en ressort que les appels d’offres écologiques peuvent présenter un meilleur rapport coût-efficacité si des candidats n’étant pas déjà bénévoles dans des programmes de protection de l’environnement sont plus nombreux à y participer. Cependant, les données semblent attester assez nettement qu’il existe un risque d’éviction de la motivation morale : se voir attribuer un marché ou une subvention fait pencher les motivations déclarées du côté de l’intérêt pécuniaire. Les conséquences concrètes de cette observation (les activités spontanées de protection, sur le terrain, s’en trouvent-t-elles diminuées ?) restent toutefois inconnues. |
| Keywords: | additionality, conservation grants, tender instruments, instruments d’appel d’offres, additionalité, financement des subventions |
| JEL: | Q55 Q57 Q58 |
| Date: | 2015–03–16 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:85-en&r=env |
| By: | World Bank Group |
| Keywords: | Environmental Economics Policies Banks Banking Reform Social Protections and Labor - Labor Policies Economic Theory Research Private Sector Development - E-Business Finance and Financial Sector Development Macroeconomics and Economic Growth Environment International Economics and Trade - Foreign Direct Investment Macroeconomics and Economic Growth - Investment and Investment Climate |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:21506&r=env |
| By: | Overseas Development Institute; World Bank Group |
| Keywords: | Conflict and Development - Disaster Management Environment - Environmental Disasters & Degradation Environment - Natural Disasters Agriculture - Commodity Risk Management Finance and Financial Sector Development - Insurance & Risk Mitigation Social Development - Social Risk Management Urban Development - Hazard Risk Management |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:21612&r=env |
| By: | Ozcan Saritas (National Research University Higher School of Economics); Liliana N. Proskuryakova (National Research University Higher School of Economics); E. Kyzyngasheva (National Research University Higher School of Economics) |
| Abstract: | Water resources are crucial for the continuity of life. Humans and living species need fresh water for drinking and sanitation, while most, if not all, industries need water for some part of production processes and products themselves. Access to fresh water is a grand challenge at the global level, mainly due to increasing water consumption, low rate of replenishment of resources as well as external factors, like climate change, that significantly reduce amount of water available. The solution to the existing water problems require a systemic approaches for sustainable use of water resources, while advancing water infrastructure and providing circular use of water. Research presented in this paper, focuses on the use of water resources in Russia with a long term perspective developed through a Foresight study. Russia is one of the countries, which is relatively better positioned compared to a number of other countries in the world regarding the availability of water resources. However, there are still considerable issues regarding the protection and use of water resources, purification processes, water networks, consumption patterns, discharge, treatment and re-use. The present study aims to develop strategies and for the use of water resources with a long term time perspective. The first step involved a scanning exercise, to be followed by future scenarios and strategy proposals for action. Presenting the results of the scanning phase, the paper begins with the review of the key issues and challenges concerning water resources. Particular attention is paid to the state-of-the-art in the three domains identified in the scope of research: (i) sustainability of water systems, (ii) water use by households and industry, and (iii) new water products and services. Furthermore, trends, weak signals and wild cards identified in the course of the study, as well as their implications on water resources in Russia are discussed. The paper concludes with a brief description of the next phases of the study and follow-up activities planned in the project |
| Keywords: | water resources, sustainable water systems, water use, water goods and services, trend scanning, weak signals, wild cards |
| JEL: | H4 H5 H87 I30 M11 R20 R52 Q01 Q02 Q15 Q18 Q22 Q25 Q26 Q27 Q53 Q54 Q55 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:35sti2015&r=env |
| By: | Donald F. Larson; Dilshod Khidirov; Irina Ramniceanu |
| Keywords: | Crops and Crop Management Systems Agriculture and Farming Systems Economic Theory and Research Rural Development Knowledge and Information Systems Environmental Economics and Policies Environment Agriculture Rural Development Macroeconomics and Economic Growth |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:21495&r=env |
| By: | Kees Vringer; Herman R.J. Vollebergh; Daan van Soest; Eline van der Heijden; Frank Dietz |
| Abstract: | Consumers only occasionally choose to buy sustainable products. At the same time these consumers say in surveys that sustainability is important to them, and that the government should promote sustainable consumption. Most likely, a social dilemma is at play here. Everyone would be better off if we all consume sustainably; but because of the higher prices for sustainable products, there is an incentive for each individual to leave sustainability efforts to others. Government measures to promote sustainable consumption would resolve the social dilemma. But do consumers really want to increase sustainability? This study takes a closer look at public support for sustainable consumption and the associated dilemmas, with the help of a behavioural economics experiment of group decisions. In the experiment, participants had to decide whether they were willing to buy more sustainable varieties of meat or chocolate instead of less sustainable conventional varieties. They actually had to buy the product agreed upon for one week. The results show that a large number of participants, who did not usually buy sustainable products, were willing to commit to buying sustainable products. This gap may partially be explained by ‘conditional cooperation’ phenomena. In addition participants appear insensitive to the size of the collective benefit. However, the participants in our experiment seem to have difficulties to force others to buy sustainable products. They seem to be caught in a moral dilemma in which they weigh the feel-good effect of contributing to a collective good against the higher individual costs of buying sustainable products and forcing others to do so. Also we found that the preference of the participants for, or dislike of, a measure beforehand did not say much about their appreciation of the measure afterwards. Based on the results we draw the following policy conclusions. Since consumers do not always act in accordance with their values, the presently low market shares of sustainable products do not adequately reflect consumer support for government policy to promote sustainable consumption. To stimulate consumption of sustainable products, it may be useful to emphasize the feel-good effect (‘warm glow’) of individual contributions to sustainability. Furthermore, the government could make use of the fact that most consumers are ‘conditionally cooperative’, e.g. by convincing individual consumers that enough others are switching to sustainable products, too. In this context, it appears that consumers prefer ‘soft’ incentive measures (e.g. subsidies) over ‘hard’ restrictive regulations, even if their individual financial benefit from the former will be smaller. The freedom of choice is apparently worth it. However, rules and regulations, even in the form of bans of less sustainable product varieties, can be acceptable and more effective – as long as the government takes the lead in setting up these rules and regulations.<BR>Les consommateurs ne choisissent qu’occasionnellement d’acheter des produits durables. Or quand on les interroge, ces mêmes consommateurs déclarent que la durabilité est importante pour eux et que les pouvoirs publics devraient promouvoir la consommation durable. Selon toute vraisemblance, un dilemme social est ici à l’oeuvre. Chaque individu gagnerait à ce que nous consommions tous des produits durables, mais le prix plus élevé de ces produits l’incite à laisser cet effort aux autres. L’adoption par les pouvoirs publics de mesures visant à promouvoir la consommation durable résoudrait le dilemme social, mais les consommateurs souhaitent-ils réellement promouvoir la durabilité ? Cette étude examine l’intérêt des individus pour la consommation durable et les dilemmes que cela engendre, en s’appuyant sur une expérience d’économie comportementale appliquée à des décisions de groupe. Dans cette expérience, les participants devaient décider s’ils étaient prêts à acheter de la viande biologique ou du chocolat équitable au lieu de versions classiques (moins durables) de ces produits, et devaient effectuer les achats décidés durant une semaine. Les résultats montrent qu’un grand nombre de participants, qui n’achètent habituellement pas de produits durables, étaient prêts à s’engager à le faire. Ce contraste peut en partie s’expliquer par un phénomène de « coopération conditionnelle ». En outre, les participants paraissent insensibles à l’ampleur du gain collectif généré. Toutefois, les participants de notre expérience semblent éprouver des difficultés à obliger les autres à acheter des produits durables. Ils semblent être confrontés à un dilemme moral, dans lequel ils doivent mettre en balance la sensation de bien-être que provoque la contribution à un bien collectif et les coûts individuels plus élevés que supposent l’achat de produits durables et le fait d’obliger les autres à agir de même. Nous avons aussi constaté que la préférence des participants pour une mesure ou leur rejet de celle-ci a priori n’en disaient pas beaucoup sur leur appréciation de la mesure a posteriori. À partir des résultats de cette expérience, nous avons tiré les conclusions suivantes. Puisque les consommateurs n’agissent pas toujours conformément à leurs valeurs, la part de marché des produits durables, qui est actuellement faible, ne reflète pas correctement le soutien des consommateurs aux mesures prises par les pouvoirs publics pour promouvoir la consommation durable. Afin de stimuler la consommation de produits durables, il pourrait s’avérer utile de jouer sur la sensation de bien-être (le « chaud au coeur ») que suscite une contribution individuelle au développement durable. En outre, les pouvoirs publics pourraient s’appuyer sur la « coopération conditionnelle » qui caractérise la plupart des consommateurs, par exemple en persuadant chaque individu qu’un nombre suffisant (important) de consommateurs change aussi ses habitudes de consommation au profit de la consommation durable. Dans ce contexte, il apparaît que les consommateurs préfèrent les mesures incitatives « douces » (comme les subventions) aux règlementations restrictives, mesures « dures », même s’ils y perdent sur le plan financier. C’est le prix à payer pour le libre-choix. Toutefois, les règlementations, même sous la forme d’interdiction des versions les moins durables d’un produit, peuvent être acceptées et s’avérer plus efficaces, tant qu’elles restent à l’initiative des pouvoirs publics. |
| Keywords: | conditional cooperation, household economics, sustainable consumption, consommation durable, coopération conditionnelle, économie des ménages |
| JEL: | D11 D12 |
| Date: | 2015–03–16 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:84-en&r=env |
| By: | Silvia Martinez Romero; Wendy Hughes |
| Keywords: | Energy - Energy Resources Development Energy Technology and Transmission Energy Policies and Economics Energy - Energy and Natural Resources Energy - Energy Markets Energy - Energy Production and Transportation |
| Date: | 2015–02 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:21629&r=env |
| By: | Gebrezgabher, Solomie A.; Amewu, Sena; Amoah, Philip |
| Abstract: | The reuse of treated wastewater for aquaculture has been practiced in several countries and has a potential to create a viable fish farming business in low income countries. However, wastewater aquaculture practices which satisfy health and hygiene guidelines and standards will not be viable if consumers are unwilling to purchase fish reared in treated wastewater. In this study we investigate consumers’ preference and willingness to pay for fish farmed in treated wastewater in Ghana. A consumer survey was conducted in Kumasi. We utilize a dichotomous-choice contingent valuation methodology to estimate willingness to pay for fresh Tilapia and smoked Catfish farmed in treated wastewater and analyze factors that affect consumer choice. Consumers in the survey ranked price, size and quality of fish measured by taste and freshness as the most important product attributes influencing their decision prior to purchasing fish. Source of fish is among the least important product attributes influencing consumers’ decision. Results indicate that surveyed consumers generally accept fish reared in treated wastewater if lower prices are offered. Socioeconomic factors such as household income, education and family size significantly determine consumers’ willingness to pay. Furthermore, results indicate that households with children are more likely to pay for smoked Catfish compared to fresh Tilapia indicating that postharvest processing of fish might be perceived as safer and thus increases consumers’ willingness to pay for smoked Catfish. The results of this study provide better understanding of fish consumers’ buying behavior and their perceptions of and attitude towards fish reared in treated wastewater. Moreover, results can contribute to identifying key product attributes that need to be targeted for improvement if sales of fish farmed in treated wastewater is to be achieved. |
| Keywords: | Wastewater aquaculture, farmed fish, dichotomous choice, willingness to pay, Health Economics and Policy, International Development, Land Economics/Use, |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:200415&r=env |
| By: | Marz, Waldemar; Pfeiffer, Johannes |
| Abstract: | We analyze monopoly power in a market for a complementary fossil resource like oil in a two country/two period model with international trade in general equilibrium. Focusing on the complex interplay of capital and resource market, we elaborate how these effects feed back into the resource monopolist's extraction decision. His level of knowledge about the economic structure thereby plays a key role. The accumulation of own capital assets over time, together with a recognized influence of extraction on the interest rate, can lead the monopolist to accelerate or postpone extraction. Considering the interaction of resource market and global capital accumulation poses an incentive for the monopolist to accelerate extraction and to exploit the importers' increased resource addiction in the future. The conservationist bias of resource market power can be increased, dampened or reversed through the general equilibrium effects. |
| Keywords: | Monopoly, fossil energy resources, Hotelling rule, general equilibrium, capital market, sovereign wealth |
| JEL: | D42 D58 D9 Q3 |
| Date: | 2015–03–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:63357&r=env |