nep-env New Economics Papers
on Environmental Economics
Issue of 2015‒05‒02
fifty papers chosen by
Francisco S. Ramos
Universidade Federal de Pernambuco

  1. The Economics of Forest Carbon Sequestration Revisited: A Challenge for Emissions Offset Trading By G. Cornelis van Kooten
  2. Energy and the Environment: a cold climate for climate change policies? By Jonathan Colmer; Antoine Dechezleprêtre; Ralf Martin
  3. The emission reduction effect and economic impact of an energy tax vs. a carbon tax in China : a dynamic CGE model analysis By Zou, Lele; Xue, Jinjun; Fox, Alan; Meng, Bo; Shibata, Tsubasa
  4. Environmental attitude, motivations and values for marine biodiversity protection By Halkos, George; Matsiori, Steriani
  5. The Climate Policy Hold-Up: Green Technologies,Intellectual Property Rights, and the Abatement Incentives of International Agreements By Goeschl, Timo; Perino, Grischa
  6. Green Game and Societal Sustenance: A Case of London Olympic 2012 By Dongre, Anil
  7. Using Crop Genetic Resources To Help Agriculture Adapt to Climate Change: Economics and Policy By Heisey, Paul; Day-Rubenstein, Kelly
  8. Prospect of China's energy conservation and emission reduction during the remaining years of the 12th Five-Year Plan period By Ke Wang; Yingnan Liu
  9. Pushing the Tipping in International Environmental Agreements By Lorenzo Cerda Planas
  10. Targeted carbon tariffs - Carbon leakage and welfare effects By Christoph Böhringer; Brita Bye; Taran Fæhn; Knut Einar Rosendahl
  11. Market Power Rents and Climate Change Mitigation: A Rationale for Coal Taxes? By Philipp M. Richter; Roman Mendelevitch; Frank Jotzo
  12. Climate policies with private information: The case for unilateral action By Carsten Helm; Franz Wirl
  13. Automobile Pollution Control in Brazil By Claudio Ferraz; Ronaldo Seroa da Motta
  14. Institutional adaptation to cooling water scarcity in the electricity sector under global warming By Klaus Eisenack
  15. Economic Growth, Coal Demand, Carbon Dioxide Emissions: Empirical Findings from India with Policy Implications By Mita Bhattacharya; Hooi Hooi Lean; Sankar Bhattacharya
  16. The Social Cost of Carbon with Economic and Climate Risks By Yongyang Cai; Kenneth L. Judd; Thomas S. Lontzek
  17. Carbon policy and the structure of global trade By Edward J. Balistreri; Christoph Bohringer; Thomas F. Rutherford
  18. Assessing the Impact of Environmental Regulation on Industrial Water use: Evidence from Brazil By José Féres; Arnaud Reynaud
  19. Green Skills By Francesco Vona; Giovanni Marin; Davide Consoli; David Popp
  20. Accumulation with Malnutrition - The Role of Status Seeking Behavior By Sugata Marjit; Lei Yang
  21. Environmental livelihood security in Southeast Asia and Oceania: a water-energy-food-livelihoods nexus approach for spatially assessing change. By Biggs, E. M.; Boruff, B.; Bruce, E.; Duncan, J. M. A.; Haworth, B. J.; Duce, S.; Horsley, J.; Curnow, Jayne.; Neef, A.; McNeill, K.; Pauli, N.; Van Ogtrop, F.; Imanari, Y.
  22. Modeling pollution and economic growth: the effect of a lethal threshold By Asuka Oura; Yasukatsu Moridera; Koichi Futagami
  23. Did Climate Change Influence English Agricultural Development? (1645-1740) By JosŽ L. Mart’nes-Gonz‡lez
  24. The management of natural resources under asymmetry of information By Gérard Gaudet; Pierre Lasserre
  25. Analyzing the Environmental Performance of the Brazilian Industrial Sector By Ronaldo Seroa da Motta
  26. The Future of Development Aid in a Globalizing World with Climate Change By Hübler, Michael
  27. Goldilocks Economies? Temperature Stress and the Direct Impacts of Climate Change By Geoffrey Heal; Jisung Park
  28. Sustainability, Resource Efficiency and Competitiveness. An Assessment of Resource Efficiency Policies in the European Union. By Florian Flachenecker
  29. Carbon dioxide emissions in the short run: The rate and sources of economic growth matter By Paul J. Burke; Md Shahiduzzaman; David I. Stern
  30. Agricultural Growth in the Period 1999-2004, Outburst in Soybeans Area and Environmental Impacts in Brazil By Antonio Salazar Pessoa Brandão; Gervásio Castro de Rezende; Roberta Wanderley da Costa Marques
  31. International Fisheries Agreements and Non-consumptive Values By Pintassilgo, Pedro; Laukkanen, Marita; Kronbak, Lone Grønbæk; Lindroos, Marko
  32. Conservation and welfare: Toward a reconciliation of theory and facts By Marie-Eve Yergeau; Dorothée Boccanfuso; Jonathan Goyette
  33. Cost trajectories of low carbon electricity generation technologies in the UK: A study of cost uncertainty By Peter G. Levi; Michael G. Pollitt
  34. The Effect of Air Pollution on Mortality in China: Evidence from the 2008 Beijing Olympic Games By Guojun He; Maoyong Fan; Maigeng Zhou
  35. How Does Future Tourism Affect Today’s Depletion of Natural Resources in a Globalized World? By Hübler, Michael
  36. Welfare and Distributional Implications of Shale Gas By Catherine Hausman; Ryan Kellogg
  37. Growth, Pollution, and Life Expectancy: China from 1991-2012 By Guojun He; Maoyong Fan; Maigeng Zhou; Avraham Ebenstein; Michael Greenstone; Peng Yin
  38. Agricultural Growth in Brazil in the Period 1999-2004: Outburst of Soybeans and Livestock and its Impact on the Environment By Antonio Salazar Pessoa Brandão; Gervásio Castro de Rezende; Roberta Wanderley da Costa Marques
  39. Agricultural Production Economics (Second Edition); Applied Microeconomics: Consumption, Production and Markets; and Economics of Food and Agriculture, (Third Edition): Supplemental Spreadsheets, PowerPoint Files and Other Class Materials By Debertin, David L.
  40. Adoption d’innovations par les agriculteurs : rôle des perceptions et des préférences By Caroline Roussy; Aude Ridier; Karim Chaib
  41. A theory of optimal green defaults By Meran, Georg; Schwarze, Reimund
  42. La pêche professionnelle est-elle un facteur d’attractivité récréative sur le littoral ? By Carole Ropars-Collet; Mélody Leplat; Philippe Le Goffe; Marie Lesueur
  43. Growth in transition: Selected contributions of the Wuppertal Institute at the 4th International Conference on Degrowth for Ecological Sustainability and Social Equity By Freyling, Vera; Schepelmann, Philipp; Buhl, Johannes; Biesecker, Adelheid; von Winterfeld, Uta; Best, Benjamin
  44. Modelling Renewable Energy Economy in Ghana with Autometrics By Ackah, Ishmael; Asomani, Mcomari
  45. Maintaining an Efficient and Equitable Housing Market in Belgium By Sanne Zwart
  46. Explaining Agriculture Expansion and Deforestation: Evidence from the Brazilian Amazon – 1980/98 By Claudio Ferraz
  47. Transition towards renewable energy supply in Croatia By Vidakovic, Neven
  48. Estimating Timber Depreciation in the Brazilian Amazon By Ronaldo Seroa da Motta; Claudio Ferraz
  49. Towards Complete Balance Sheets in the National Accounts: The case of Mineral and Energy Resources By Paul Schreyer; C. Obst
  50. Testing for Complementarity: Glyphosate Tolerant Soybeans and Conservation Tillage By Edward Perry; GianCarlo Moschini; David A. Hennessy

  1. By: G. Cornelis van Kooten
    Abstract: This paper provides an overview of the role that forestry activities play in mitigating climate change. The emphasis is on a comparison of carbon offset credits and a carbon tax/subsidy scheme for incentivizing reductions in the release of CO2 emissions and increase in sequestration of atmospheric CO2 through forestry. In addition to traditional issues related to additionality, leakages, and the transaction costs of determining and verifying how many carbon offsets are created, we investigate the importance of good governance and contracts. There are three options available to a public or private forestland owner for creating carbon offsets once tree reach maturity: (1) avoid or delay harvest; (2) harvest timber and use sawmill, logging and other residuals to generate electricity; and (3) sustainably manage the forest and carbon fluxes (i.e., post-harvest wood product carbon pools and avoided emissions from substituting wood for non-wood in construction or wood bioenergy for fossil fuels) to maximize net revenues. Delaying harvests or avoiding deforestation are considered important but outside the domain of a tax/subsidy or cap-and-trade scheme. With respect to bioenergy, the analysis suggests that, if there is a carbon dividend, it is likely to be small even if the life cycle of carbon is appropriately taken into account. Further, if there is some urgency to mitigate climate change, the use of wood bioenergy is more likely to result in a carbon debt, even with respect to coal, because of the need to weight CO2 according to when it is released to and removed from the atmosphere. Only holistic commercial forest management that is sustainable and incentivizes sequestration of carbon assures efficient mitigation of climate change. We demonstrate this by investigating carbon fluxes derived from an integrated forest management model and confirm this result more generally on the basis of a Faustmann rotation age model thatexplicitly includes benefits of storing carbon.
    Keywords: climate change mitigation and forestry; carbon offsets and taxes; carbon life-cycle analysis; biomass energy; wood products versus cement and steel; discounting; governance and corruption
    JEL: H23 Q23 Q42 Q54 G15
    Date: 2015–04
    URL: http://d.repec.org/n?u=RePEc:rep:wpaper:2015-04&r=env
  2. By: Jonathan Colmer; Antoine Dechezleprêtre; Ralf Martin
    Abstract: The UK's main political parties have all pledged to combat climate change whatever the result of the general election. Yet according to a new report from the CEP, much of the discussion is largely rhetoric, with limited focus on actionable policy commitments. The report's authors explain how UK climate policy consists of a patchwork of instruments addressing greenhouse gas emissions from a variety of sources and resulting in a diverse menu of carbon prices. And while the country's recent record on cutting carbon emissions seems impressive at first glance, much of it has been a result of the reduction in economic activity in the Great Recession.
    Keywords: energy, climate change, environment, #ElectionEconomics
    Date: 2015–04
    URL: http://d.repec.org/n?u=RePEc:cep:cepeap:032&r=env
  3. By: Zou, Lele; Xue, Jinjun; Fox, Alan; Meng, Bo; Shibata, Tsubasa
    Abstract: Chinese government commits to reach its peak carbon emissions before 2030, which requires China to implement new policies. Using a CGE model, this study conducts simulation studies on the functions of an energy tax and a carbon tax and analyzes their effects on macro-economic indices. The Chinese economy is affected at an acceptable level by the two taxes. GDP will lose less than 0.8% with a carbon tax of 100, 50, or 10 RMB/ton CO2 or 5% of the delivery price of an energy tax. Thus, the loss of real disposable personal income is smaller. Compared with implementing a single tax, a combined carbon and energy tax induces more emission reductions with relatively smaller economic costs. With these taxes, the domestic competitiveness of energy intensive industries is improved. Additionally, we found that the sooner such taxes are launched, the smaller the economic costs and the more significant the achieved emission reductions.
    Keywords: China, Energy policy, Environmental policy, Taxation, Climatic change, Econometric model, Economic conditions, Energy tax, Carbon tax, Climate change, CGE model, Energy intensive industry
    JEL: C13 C15 E37 J21 K32 Q54 C54 O44
    Date: 2015–01
    URL: http://d.repec.org/n?u=RePEc:jet:dpaper:dpaper487&r=env
  4. By: Halkos, George; Matsiori, Steriani
    Abstract: This study explores people’s environmental attitudes and motives for putting economic values to marine biodiversity and its protection. Primary data were collected from a sample of 359 people living in two important Greek coastal port cities: Thessaloniki and Volos. Respondents’ environmental attitude was measured with the New Ecological Paradigm (NEP) scale, and economic values were derived from a referendum, contingent valuation method (CVM) survey for protecting marine biodiversity. Use of appropriate statistical methods revealed three factors of environmental attitudes; namely, man dominate to nature, anti-anthropocentrism and limits to growth. Significant relationships are found between NEP scale factors and socio-economic characteristics and individuals’ opinions about marine biodiversity utility. Pro-environmental behavior or attitudes are associated with higher NEP scale scores. At a second stage and in a logistic regression setup the relation between people’s willingness to pay (WTP) for marine biodiversity protection with their socio-economic characteristics and the PCA extracted results are explored. Pro-environmental attitudes influence the estimates of mean WTP. Significant relationships are found between environmental attitudes and non-use motivations and WTP and ethical motives for species protection. Finally individuals’ mean WTP for marine biodiversity protection was calculated approximately equal to € 29 per person.
    Keywords: Environmental attitudes; NEP scale; CVM; WTP; biodiversity.
    JEL: C10 C52 Q20 Q51 Q57
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:63947&r=env
  5. By: Goeschl, Timo; Perino, Grischa
    Abstract: The success of global climate policies over the coming decades depends on the diffusion of 'green' technologies. This requires that international environmental agreements (IEAs) and trade-related intellectual property rights (TRIPs) interact productively.Using a simple and tractable model, we highlight the strategic reduction in abatement commitments on account of a hold-up effect. In anticipation of rent extraction by the innovator signatories might abate less than non-signatories turning the IEA 'brown'. Self-enforcing IEAs have fewer signatories and diffusion can reduce global abatement under TRIPs. Countries hosting patent holders extract rents from TRIPs, but may be better off without them.
    Keywords: International climate policy; diffusion of innovations; intellectual property rights; hold-up problem.
    Date: 2015–04–20
    URL: http://d.repec.org/n?u=RePEc:awi:wpaper:0591&r=env
  6. By: Dongre, Anil
    Abstract: Sustainability through environmental protection and fostering social development is essential ingredient for survival of mankind across the nation, as human society is facing extraordinary growth on all facades of life. The development that have been made life of human being very smooth but it poses threat to environment in terms of biodiversity destruction, atmospheric and other ecosystem impurity. For having continuity of survival of humane species, it is indispensable to protect our environment through any activity and even through sport and London Olympic 2012 is one such trend setter event. Thus this research paper study how London Olympic 2012 plan for sustainability throughout game and to create legacy for its society, through tackling climate change and managing waste efficiently, encouraging biodiversity, setting new standards for the sustainable development of infrastructure and creating facilities, transport used for the games and construction of the venues.
    Keywords: Sustainability, Environmental Protection, Olympic Game, Biodiversity, Healthy Leaving
    JEL: L83 Q56 Q57
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:63818&r=env
  7. By: Heisey, Paul; Day-Rubenstein, Kelly
    Abstract: Climate change poses significant risks to future crop productivity as temperatures rise, rainfall patterns become more variable, and pest and disease pressures increase. The use of crop genetic resources to develop varieties more tolerant to rapidly changing environmental conditions will be an important part of agricultural adaptation to climate change. Finding new genetic traits that can facilitate adaptation—and incorporating them into commercially successful varieties—is time-consuming, expensive, and technically difficult. The public-goods characteristics of genetic resources can create obstacles to rewards for private research and development. Because of insufficient private incentives, public-sector investment in the use of genetic resources will help determine the agricultural sector’s ability to maintain crop productivity, and for society as a whole, the potential benefits of public investment are large. The study authors find, however, that factors such as intellectual property rules for genetic resources and for research tools, or international agreements governing genetic resource exchange, have the potential both to promote and to hamper greater use of genetic resources for climate change adaptation.
    Keywords: Crop genetic resources, crop germplasm, climate change, plant breeding, agricultural resources, Agricultural and Food Policy, Environmental Economics and Policy, Resource /Energy Economics and Policy,
    Date: 2015–04
    URL: http://d.repec.org/n?u=RePEc:ags:uersib:202351&r=env
  8. By: Ke Wang; Yingnan Liu
    Abstract: China has set controlling greenhouse gas (GHG) emissions as a key task and an essential part of economic development and industrial upgrading for energy saving and climate change mitigation. Energy conservation has been given great attention since the beginning of the 11th Five-Year Plan (FYP) period (2006-2010), and in 2011, specific goals have been made for reduction of energy intensity and carbon intensity for the 12th FYP period (2011-2015). In this study, according to the regional data of the first two years of the 12th FYP period, current situations of energy conservation and emission reduction in China and its provinces were analyzed. Recommendations for 2013-2015 are discussed based on continuing goals, economic and natural conditions. Shifting of energy consuming structure is primarily discussed as one of the main approaches, and alternate methods of energy restructure are suggested due to the limitation of natural resources in China.
    Keywords: Carbon intensity, China, Emission reduction, Energy conservation, Energy intensity, Five-Year Plan
    JEL: Q47 Q54
    Date: 2014–09–10
    URL: http://d.repec.org/n?u=RePEc:biw:wpaper:75&r=env
  9. By: Lorenzo Cerda Planas (Paris School of Economics - Centre d'Economie de la Sorbonne)
    Abstract: This paper intends to provide an alternative approach to the formation of International Environmental Agreements (IEA). The existing consensus within the literature is that there are either too few signatories or that the emissions of signatories are almost the same as business as usual (BAU). I start from a well-known model (Barrett 1997), adding heterogeneity in countries' marginal abatement costs (low and high) and in damages suffered (or corresponding environmental concern). I also allow for technological transfers and border taxes. I show that using either mechanism one at a time, does not change the results. But if both are used in a strategic manner, a grand (and abating) coalition can be reached, while minimizing transfers
    Keywords: Self-enforcing environmental agreements; border tax; tipping
    JEL: F53 C63 C72 F18 Q58 O32
    Date: 2015–03
    URL: http://d.repec.org/n?u=RePEc:mse:cesdoc:15031&r=env
  10. By: Christoph Böhringer (Carl von Ossietzky Universität Oldenburg, Institut für Volkswirtschaftslehre & ZenTra); 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: 2015–04
    URL: http://d.repec.org/n?u=RePEc:zen:wpaper:51&r=env
  11. By: Philipp M. Richter; Roman Mendelevitch; Frank Jotzo
    Abstract: In this paper we investigate the introduction of an export tax on steam coal levied by an individual country (Australia), or a group of major exporting countries. The policy motivation would be twofold: generating tax revenues against the background of improved terms-of-trade, while CO2 emissions are reduced. We construct and numerically apply a two-level game consisting of an optimal policy problem at the upper level, and an equilibrium model of the international steam coal market (based on COALMOD-World) at the lower level. We find that a unilaterally introduced Australian export tax on steam coal has little impact on global emissions and may be welfare reducing. On the contrary, a tax jointly levied by a "climate coalition" of major coal exporters may well leave these better off while significantly reducing global CO2 emissions from steam coal by up to 200 Mt CO2 per year. Comparable production-based tax scenarios consistently yield higher tax revenues but may be hard to implement against the opposition of disproportionally affected local stakeholders depending on low domestic coal prices.
    Keywords: Export tax, steam coal, supply-side climate policy, carbon leakage, Australia, Mathematical Program with Equilibrium Constraints (MPEC)
    JEL: Q48 F13 Q58 Q41 C61
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1471&r=env
  12. By: Carsten Helm (University of Oldenburg, Department of Economics); Franz Wirl
    Abstract: Countries often have private information about their willingness to pay for protecting the climate system and their cost of emission reductions. We use a principal-agent model to re-examine the economic case for unilateral action by individual countries, in our case of the principal. We ?nd that the incentive structure that arises in an incomplete information framework can motivate (i) unilateral action before contract negotiations, (ii) optimal contracts in which the principal accepts higher marginal abatement costs for herself, as well as (iii) overcompliance by the principal after the contract has been negotiated. Multilateral externalities and type-dependent outside options, which are characteristic for climate policies, play a crucial role to explain these results.
    Keywords: unilateral action, voluntary action, unilateral commitment, private information, multilateral externalities, international environmental agreements, type-dependent outside options
    JEL: D82 Q54 H87
    Date: 2015–04
    URL: http://d.repec.org/n?u=RePEc:old:dpaper:378&r=env
  13. By: Claudio Ferraz; Ronaldo Seroa da Motta
    Abstract: Air pollution concentrations have been rapidly increasing in the major urban areas of Brazil caused mainly by the increasing use of vehicles. In the presence of this negative externality, environmental regulation is required. Car emission control policies in Brazil have relied basically on mandatory emission standards and subsidies for specific cleaner technology resulting in substantial decrease of car emission rates. Nevertheless, car sale taxes, differentiated by vehicles’ size and fuel, have also influenced car emission patterns. This paper analyzes the compliance trend of the Brazilian fleet with environmental standards between 1992 and 1997. We find that larger automobiles had the fastest compliance schedule while popular models adjusted very slowly. Also gasoline-fueled models had a faster adjustment pattern than ethanol cars. Additionally, we analyze the current relationship between pollution emissions and car characteristics in order to orient policy formulation. We find a positive relationship between emissions rates and horse power, concluding that although the current value added-sale car tax is not environmental harmful, a tax differentiating clean from dirty models, within each tax bracket, could create substantial incentives for emission control in the future. A concentração da poluição do ar tem crescido rapidamente nas grandes regiões metropolitanas do Brasil devido, principalmente, ao crescente uso de veículos automotivos. Na presença desta externalidade negativa, a regulação ambiental faz-se necessária. A política de controle de emissões de poluentes automotivos no Brasil, implementada basicamente com uso de mecanismos de comando e controle e incentivo fiscal, resultou em redução significativa na emissão média de poluentes nos carros novos. Não obstante, o imposto (IPI) sobre a venda de automóveis, diferenciado por combustíveis e potência, também influenciou na evolução das emissões de poluentes. Este trabalho analisa a evolução do atendimento às metas de emissão de poluentes veiculares da legislação ambiental entre 1992 e 1997. Os resultados indicam que os carros grandes, que obtiveram incentivo fiscal, tiveram ajuste mais rápido enquanto os carros populares realizaram ajuste mais lento. Além disso, carros a gasolina ajustaram sua tecnologia mais rápido do que os carros a álcool. Adicionalmente, analisamos a relação entre emissões e características dos automóveis novos vendidos em 1997. Os resultados indicam a existência de uma relação positiva entre taxas de emissão e potência. Concluímos que, embora a atual estrutura do IPI não esteja em oposição aos carros mais limpos, a adoção de alíquotas diferenciadas dentro de cada categoria, menor para os mais limpos e maior para os mais sujos, criaria incentivos para que o controle das emissões de poluentes veiculares fosse realizado de forma mais custo-efetiva.
    Date: 2015–01
    URL: http://d.repec.org/n?u=RePEc:ipe:ipetds:0086&r=env
  14. By: Klaus Eisenack (University of Oldenburg, Deparment of Economics)
    Abstract: This paper studies institutional change as a response to anticipated changes in the natural environment. Power plants occasionally need to be curtailed during heat waves, causing economic losses and putting electricity supply at risk. This problem likely exacerbates due to global warming, so that institutional arrangements<br>for cooling water management may require adaptation. The papers compares different arrangements with a transaction cost analysis. If heat waves only increase in intensity, long-term and site specific temperature caps perform comparatively best. Otherwise, total costs can be reduced by a specific contract between the environmental<br>regulator and electricity producers (the minimum power plant concept), or a dynamic heat load plan. The paper highlights economies of scale in transaction costs, and shows how institutional change can depend on the speed of exogenous changes. The general considerations are illustrated by taking the German Rhine<br>catchment as an example.
    Keywords: cascading externalities, electricity, environmental regulation, institutional<br>change, transaction costs, water use conflict
    JEL: D23 Q25 Q41 Q54
    Date: 2015–01
    URL: http://d.repec.org/n?u=RePEc:old:dpaper:377&r=env
  15. By: Mita Bhattacharya; Hooi Hooi Lean; Sankar Bhattacharya
    Abstract: Coal is the primary source of energy and predominantly used for electricity generation in India. For an emerging economy like India, the demand-supply gap is widening in Coal sector with economic growth. Considering both sides of market, we establish long run dynamics between economic growth, coal demand and carbon dioxide (CO2) emissions. Unidirectional causality is found between growth and CO2 emissions, and bi-directional causality between GDP and coal consumption. Elasticity of coal consumption with respect to economic growth increases from 0.205 to 0.631 from short to long run; while elasticity of CO2 emissions with respect to coal consumption decreases from 0.915 to 0.148 from short to long run. In increasing demand environment, we suggest more investment in cleaner coal technologies, reducing regulatory constraints in the coal sector, and exploring alternative sources of energy will help India for energy security and sustainable development in the long run.
    Keywords: India, Coal Consumption, CO2 Emissions, Economic Growth, Cleaner Coal Technology
    JEL: Q43 Q48 Q56
    Date: 2014–10
    URL: http://d.repec.org/n?u=RePEc:mos:moswps:2014-47&r=env
  16. By: Yongyang Cai; Kenneth L. Judd; Thomas S. Lontzek
    Abstract: There is great uncertainty about future climate conditions and the appropriate policies for managing interactions between the climate and the economy. We develop a multidimensional computational model to examine how uncertainties and risks in the economic and climate systems affect the social cost of carbon (SCC)---that is, the present value of the marginal damage to economic output caused by carbon emissions. The SCC is substantially increased by economic and climate risks at both current and future times. Furthermore, the SCC is itself a stochastic process with significant variation; for example, the basic elements of risk incorporated into our model cause the SCC in 2100 to be, with significant probability, ten times what it would be without those risks. We have only imprecise information about what parameter values are best for approximating reality. To deal with this parametric uncertainty we perform extensive uncertainty quantification and show that these findings are robust for a wide range of alternative specifications. More generally, this work shows that large-scale computing can enable economists to examine substantially more complex and realistic models for the purposes of policy analysis.
    Date: 2015–04
    URL: http://d.repec.org/n?u=RePEc:arx:papers:1504.06909&r=env
  17. By: Edward J. Balistreri (Division of Economics and Business, Colorado School of Mines); Christoph Bohringer (Department of Economics, University of Oldenburg); Thomas F. Rutherford (University of Wisconsin)
    Abstract: Alternative perspectives on the structure of international trade have important implications for climate policy and its interaction with global markets. In this paper we consider carbon policy in the context of three important alternative trade formulations. First, is a neo-classical model based on trade in homogeneous products, which is the natural context for considering competitive effects of trade and environmental policy. Second is a model based on regionally differentiated goods consistent with the Armington assumption adopted in the policy simulation literature. Finally, we consider a monopolistic-competition model, consistent with Melitz (2003), which is the focus of many contemporary theoretic investigations in international trade. These structures have important implications for carbon leakage and the spatial distribution of energy-intensive production. Furthermore, predictions about the transmission of policy burdens to non-participating countries are critically dependent on the assumed structure of trade.
    Keywords: Heterogeneous firms, carbon leakage, competitive effects
    Date: 2015–04
    URL: http://d.repec.org/n?u=RePEc:mns:wpaper:wp201502&r=env
  18. By: José Féres; Arnaud Reynaud
    Abstract: This paper aims at characterizing water demand by Brazilian manufacturing plants located in São Paulo and at assessing the potential impacts of environmental policies on industrial water use. We first show that the price elasticity of the water demand, -1.0 on average, is high enough for a water charge to act as an effective policy tool for reducing water consumption. Results also provide some evidence of a tradeoff between water quality improvement and water conservation policies, since more stringent environmental standards may lead to a higher water demand. A joint use of environmental norms and water charges may reconcile both policy goals. Este artigo tem por objetivo caracterizar a demanda de água nas indústrias localizadas no Estado de São Paulo e avaliar o impacto potencial da aplicação de instrumentos de política ambiental sobre o uso industrial da água. Primeiramente, mostra-se que a elasticidade-preço estimada para a demanda de água, de –1,0 em média, é suficientemente alta para que a implementação da cobrança pelo uso de recursos hídricos seja um mecanismo eficaz de incentivo à redução da demanda de água para uso industrial. Os resultados também apontam para a existência de um trade-off entre políticas de controle de poluição e aquelas que visam à conservação quantitativa de recursos hídricos, uma vez que normas mais severas de padrões de descarga de efluentes podem levar a um aumento da demanda de água. O uso combinado de normas para descarga de efluentes e da cobrança pelo uso da água podem eliminar este trade-off promovendo o uso racional de recursos hídricos em termos qualitativos e quantitativos.
    Date: 2015–01
    URL: http://d.repec.org/n?u=RePEc:ipe:ipetds:0143&r=env
  19. By: Francesco Vona; Giovanni Marin; Davide Consoli; David Popp
    Abstract: The catchword ‘green skills’ has been common parlance in policy circles for a while, yet there is little systematic empirical research to guide public intervention for meeting the demand for skills that will be needed to operate and develop green technology. The present paper proposes a data-driven methodology to identify green skills and to gauge the ways in which the demand for these competences responds to environmental regulation. Accordingly, we find that green skills are high-level analytical and technical know-how related to the design, production, management and monitoring of technology. The empirical analysis reveals that environmental regulation triggers technological and organizational changes that increase the demand for hard technical, engineering and scientific skills. Our analysis suggests also that this is not just a compositional change in skill demand due to job losses in sectors highly exposed to trade and regulation.
    JEL: J24 Q52
    Date: 2015–04
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:21116&r=env
  20. By: Sugata Marjit (CTRPFP, Centre for Studies in Social Sciences, Calcutta, India); Lei Yang (Hong Kong Polytechnic University, Hong Kong)
    Abstract: This paper investigates the optimal environmental policy (the mix of emissions tax and R&D subsidy) when two firms, producing differentiated products, compete in the output market over time. Firms compete over supply schedules, which encompasses a continuum of market structures from Bertrand to Cournot. While production generates environmentally damaging emissions, firms can undertake R&D, which has the sole purpose of reducing emissions. In addition to characterising the optimal policy, we examine how the optimal tax and subsidy and the optimal level of abatement change as competition intensifies, as the dynamic parameters change and as the investment in abatement technology changes. In this setting, increased competition no longer necessarily leads to an increase in welfare. Instead, there are two forces. Competition increases welfare through its impact on the final goods price. However, lower prices result in larger quantities and more pollution. Our contribution is to show that the impact depends on the extent of the market, and the nature of preferences and technology.
    Keywords: Status,Consumption pattern,Inequality,Growth
    JEL: C13 C14 C51 D01 D12 O40
    Date: 2015–04–24
    URL: http://d.repec.org/n?u=RePEc:qld:uq2004:544&r=env
  21. By: Biggs, E. M.; Boruff, B.; Bruce, E.; Duncan, J. M. A.; Haworth, B. J.; Duce, S.; Horsley, J.; Curnow, Jayne.; Neef, A.; McNeill, K.; Pauli, N.; Van Ogtrop, F.; Imanari, Y.
    Keywords: Environmental sustainability; Environmental management; Ecological factors; Biodiversity; Living standards; Water security; Energy conservation; Food security; Climate change; Temperature; Precipitation; Cyclones; Agriculture; Farmland; Demography; Urbanization; Sociocultural environment; Gender; Community management; Institutions; Political aspects; Remote sensing; Natural disasters; Monitoring; Sustainable development; Assessment; Southeast Asia; Oceania
    Date: 2014
    URL: http://d.repec.org/n?u=RePEc:iwt:rerpts:h046758&r=env
  22. By: Asuka Oura (Graduate School of Economics, Osaka University); Yasukatsu Moridera (Graduate School of Economics, Osaka University); Koichi Futagami (Graduate School of Economics, Osaka University)
    Abstract: The accumulation of pollution negatively impacts human health. Extreme increases in pollution, in particular, may have lethal implications for human beings|and, indeed, all living organisms. This paper thus devises a new model of economic growth that takes into account these lethal effects of accumulated pollution via a pollution threshold to show two key results. First, if an abatement technology is relatively inefficient, there exists a stationary steady state in which consumption and pollution stop growing. Second, if the abatement technology is sufficiently efficient, there exists a path along which pollution decreases at an accelerating rate until finally reaching zero. In this case, consumption grows at a constant rate.
    Keywords: Endogenous growth, Pollution disutility, Pollution abatement
    JEL: O44 Q52
    Date: 2015–04
    URL: http://d.repec.org/n?u=RePEc:osk:wpaper:1505&r=env
  23. By: JosŽ L. Mart’nes-Gonz‡lez (University of Barcelona)
    Abstract: In this paper I analyze the ÔNitrogen ParadoxÕ stated by Robert Allen in his interpretation of the English Agricultural Revolution as an adaptive response to the agro-climatic impacts of the last phase of the Little Ice Age. The colder and more humid climate during the second half of the 17th century negatively affected the yield of the land, but it also accelerated change in the agrarian sector. The first evidence suggests that the efforts from farmers could begin to be felt in the cold period from 1660-70. Although the results were not very visible at first, this increased effort prevented a greater fall in production. This can be seen in the wheat series, where production rose slightly. As wheat demand stagnated due to a slowdown in the rise of the population, wheat prices fell, determining the evolution of relative prices and a diversification in production. In others words, the crucial driving forces of the transition from the crisis to the agrarian revolution were climate, population and the capacity of adaptation. In order to prove this hypothesis, I developed new intermediate tools, opening an interesting research field in economic history.
    Keywords: Climate Change, Agrarian Revolution, Adaptation
    JEL: N53 O13 Q10 Q24 Q54 Q55 Q57
    Date: 2015–04
    URL: http://d.repec.org/n?u=RePEc:hes:wpaper:0075&r=env
  24. By: Gérard Gaudet; Pierre Lasserre
    Abstract: We provide an introductory review to the application of the theory of incentives under asymmetry of information to the exploitation and management of natural resources. We concentrate mostly on principalagent problems with adverse selection as posed by the regulation of nonrenewable resources, stressing the fact that the inherently dynamic nature of natural resource exploitation creates situations and results not found in other contexts. We also point out private information issues that may arise involving renewable as opposed to nonrenewable resources, strategic interactions with signalling between decision makers in resource exploitation games, and the design of environmental policy where principal-agent problems subject to moral hazard may occur
    Keywords: Natural resources, asymmetric information, incentive mechanisms, adverse selection, regulation, Natural resources, asymmetric information, incentive mechanisms, adverse selection, regulation
    Date: 2015–04–23
    URL: http://d.repec.org/n?u=RePEc:cir:cirwor:2015s-17&r=env
  25. By: Ronaldo Seroa da Motta
    Abstract: This study will analyze the determinants of environmental performance in the Brazilian industrial sector. It uses a database conducted by the Brazilian National Confederation of Industries inquiring about questions on environmental management over 325 medium and large firms referred to the year 1997. We have been able to test a proxy of environmental performance, such as a weighted average number of environmental control practices. Consistent with results in the main literature, our study confirms that, apart from some expected characteristics of the firm, as size, sector and foreign ties, demands from communities and market incentives are also very influential determinants. Cost savings on inputs and subsidized credit are found equally important. Based on that, we recommend flexible instruments on pollution control that capture the firm’s differentials in characteristics and compliance levels as well as dissemination of information on environmental control and related cost saving opportunities. Este estudo analisa os determinantes do desempenho ambiental na indústria brasileira. Para tal, usa a base de dados da Pesquisa sobre Gestão Ambiental da CNI, que cobriu 325 médias e grandes empresas para o ano de 1997. Usamos um indicador de desempenho composto de uma soma ponderada das práticas de controle ambiental adotadas para cada firma. Consoante com a literatura, os resultados também confirmam que as características da firma, tais como tamanho, natureza do capital, grau de exportação e pressão da comunidade são outros fatores influenciando o desempenho ambiental. Acima de tudo, observou-se que práticas indutoras de redução de custos e subsídios são igualmente importantes. Com base nesses resultados sugerimos a adoção de instrumentos regulatórios mais flexíveis que capturem as diferenças entre as firmas como também outros que acelerem a disseminação de práticas de gestão ambiental que sejam redutoras de custos.
    Date: 2015–01
    URL: http://d.repec.org/n?u=RePEc:ipe:ipetds:0137&r=env
  26. By: Hübler, Michael
    Abstract: This essay reviews the state of knowledge about the connection of climate change and development aid in a globalizing world and makes three contributions. First, it opts for an integrated treatment of short-term aid, striving for the urgent fulfillment of basic human needs, and long-term aid, striving for economic development and self-dependence. Against the background of environmental degradation and climate change, it opts for an integrated treatment of the human-society-economy dimension and the biodiversity-nature-earth dimension as well. Second, it proposes a “global insurance for survivalâ€, for which everybody on earth is eligible. Besides, it advocates the creation of a direct link between foreign aid and foreign direct investment, associated with international technology diffusion. Economic activities should be backed up by a global legal system focusing on labor, the environment and innovation. Within this system, everybody should be able to claim against firms at an international court. The legal system relaxes intellectual property rights of life-essential and environmentally friendly products in order to enhance technology diffusion. Third, this essay suggests to finance the integrated system of development aid via a globally unified tax imposed on all people and firms on earth above a threshold income level. As a central novel element, the allocation of aid project funding occurs on a market base with the help of a certificate trading system. This mechanism achieves efficiency and flexibility across the aid dimensions identified in the first step.
    Keywords: foreign aid, foreign direct investment, absorptive capacity, certificate trading
    JEL: H23 F23 F35
    Date: 2014–12
    URL: http://d.repec.org/n?u=RePEc:han:dpaper:dp-552&r=env
  27. By: Geoffrey Heal; Jisung Park
    Abstract: We review recent literature on the effect of temperature stress on economic activity, operating through basic human physiology. There is growing evidence from both micro and macro studies of causal impacts of extreme temperature on health, labor supply, and labor productivity, driven in large part by extreme heat stress. There is also a suggestion of an optimal temperature zone for economic activity, though empirical research on potential adaptive responses remains thin. This emerging literature has implications for the consequence of climate change, and may also provide a partial explanation of why hot countries are generally poorer than temperate or cold ones.
    JEL: J22 Q5 Q54
    Date: 2015–04
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:21119&r=env
  28. By: Florian Flachenecker
    Abstract: Addressing high and volatile natural resource prices, uncertain supply prospects, reindustrialization attempts and environmental damages related to resource use, resource efficiency has evolved into a highly debated proposal among academia, policy makers, firms and international financial institutions (IFIs). In 2011, the European Union (EU) declared resource efficiency as one of its seven flagship initiatives in its Europe 2020 strategy. This paper contributes to the discussions by assessing its key initiative, the Roadmap to a Resource Efficient Europe (EC 2011 571), following two streams of evaluation. In a first step, resource efficiency is linked to two theoretical frameworks regarding sustainability, (i) the sustainability triangle (consisting of economic, social and ecological dimensions) and (ii) balanced sustainability (combining weak and strong sustainability). Subsequently, both sustainability frameworks are used to assess to which degree the Roadmap follows the concept of sustainability. It can be concluded that it partially respects the sustainability triangle as well as balanced sustainability, primarily lacking a social dimension. In a second step, following Steger and Bleischwitz (2009), the impact of resource efficiency on competitiveness as advocated in the Roadmap is empirically evaluated. Using an Arellano–Bond dynamic panel data model reveals no robust impact of resource efficiency on competiveness in the EU between 2004 and 2009 – a puzzling result. Further empirical research and enhanced data availability are needed to better understand the impacts of resource efficiency on competitiveness on the macroeconomic, microeconomic and industry level. In that regard, strengthening the methodologies of resource indicators seem essential. Last but certainly not least, political will is required to achieve the transition of the EU-economy into a resource efficient future.
    Keywords: sustainability, resource efficiency, competitiveness, dynamic panel data model, European Union.
    JEL: Q38 Q51 Q56 Q58 C23
    Date: 2015–04
    URL: http://d.repec.org/n?u=RePEc:coe:wpbeer:32&r=env
  29. By: Paul J. Burke; Md Shahiduzzaman; David I. Stern
    Abstract: This paper investigates the short-run effects of economic growth on carbon dioxide emissions from the combustion of fossil fuels and the manufacture of cement for 189 countries over the period 1961–2010. Contrary to what has previously been reported, we conclude that there is no strong evidence that the emissions-income elasticity is larger during individual years of economic expansion as compared to recession. Significant evidence of asymmetry emerges when effects over longer periods are considered. We find that economic growth tends to increase emissions not only in the same year, but also in subsequent years. Delayed effects – especially noticeable in the road transport sector – mean that emissions tend to grow more quickly after booms and more slowly after recessions. Emissions are more sensitive to fluctuations in industrial value-added than agricultural value-added, with services being an intermediate case. On the expenditure side, growth in consumption and in investment have similar implications for national emissions. External shocks have a relatively large emissions impact, and the short-run emissions-income elasticity does not appear to decline as incomes increase. Economic growth and emissions have been more tightly linked in fossil-fuel rich countries.
    Keywords: Economic growth, emissions, pollution, business cycle, asymmetry, sector
    JEL: Q56 O44 E32
    Date: 2015–04
    URL: http://d.repec.org/n?u=RePEc:een:camaaa:2015-12&r=env
  30. By: Antonio Salazar Pessoa Brandão; Gervásio Castro de Rezende; Roberta Wanderley da Costa Marques
    Abstract: This paper analyses the Brazilian agricultural growth since January 1999, when a new exchange rate policy was adopted by the country. The analysis focuses on the behavior of the exchange rate and international commodity prices throughout the period 1999-2004. It is also analysed the behavior of cropped area in this recent period, with the conclusion that there has been a fast increase in area planted with grains in the agricultural years 2001/2002, 2002/2003 and 2003/2004, due almost entirely to the growth of soybeans area. The paper proposes that this expansion of area planted with soybeans was based preponderantly on the conversion of pastures. It is also suggested that expansion of soybeans should not be seen as antagonistic to the environmental policy, specially in what respects the protection of the Amazon forest. Este trabalho analisa o crescimento agrícola brasileiro após a mudança da política cambial, em janeiro de 1999. Toma como base, para isso, o comportamento da taxa de câmbio e dos preços internacionais das commodities ao longo do período 1999- 2004. Discute, também, o comportamento da área cultivada nesse período recente, mostrando que ocorreu um aumento muito grande da área plantada com grãos nos anos agrícolas 2001/2002, 2002/2003 e 2003/2004, em grande parte devido à expansão da soja. O trabalho propõe que essa expansão tão rápida da área plantada com soja se deu preponderantemente com base em conversão de pastagens. Sugere, ainda, que a expansão da soja não deve ser vista como antagônica à política ambiental, especialmente no que se refere à proteção da floresta amazônica.
    Date: 2015–01
    URL: http://d.repec.org/n?u=RePEc:ipe:ipetds:0140&r=env
  31. By: Pintassilgo, Pedro (Faculty of Economics and Research Centre for Spatial and Organizational Dynamics); Laukkanen, Marita (VATT Institute for Economic Research); Kronbak, Lone Grønbæk (Department of Business and Economics); Lindroos, Marko (Department of Economics and Management)
    Abstract: The management of internationally shared fish stocks is a major economic, environmental and political issue. According to international law, these resources should be managed cooperatively under international fisheries agreements (IFAs). This paper studies the formation and stability of IFAs through a coalition game that accounts for both direct consumptive values (harvesting profits) and non-consumptive values of the fish stock per se. The results show that accounting for non-consumptive values helps conserve the fish stock in that equilibrium fishing efforts are smaller and fish stock larger than without non-consumptive values under all possible coalition scenarios (full, partial and no cooperation). However, considering non-consumptive values does not affect the outcome of the game in terms of the prospects for cooperation: even with substantial non-consumptive benefits, the outcome is full non-cooperation. Hence, the trap of non-cooperation in international fisheries management cannot be overcome simply by explicitly accounting for non-consumptive values within IFAs. It is suggested that strengthening the role of IFAs and limiting the ability of non-member countries to free-ride be further investigated as measures fostering cooperation.
    Keywords: Coalition games; international fisheries agreements; non-consumptive values; non-use values; shared fish stocks
    JEL: C70 F53 Q22
    Date: 2015–04–17
    URL: http://d.repec.org/n?u=RePEc:hhs:sdueko:2015_008&r=env
  32. By: Marie-Eve Yergeau; Dorothée Boccanfuso; Jonathan Goyette
    Abstract: The establishment of protected areas is a widespread practice designed to curb environmental degradation. However, it is often criticized as limiting the expansion of agriculture and natural resources extraction, especially in poor regions. Others maintain that conservation can increase welfare if the opportunity cost of conservation is less than the benefit generated by alternative uses of the land. In the economic literature, theoretical results on the relation between conservation and welfare diverge. The main objective of this paper is to reconcile the theoretical and the empirical results. We develop and test a theory explaining the relation between conservation, ecotourism and welfare. A distinctive feature of the model is that conservation allows to develop an ecotourism sector, which generates an alternative source of income at the local level. We also take into account the effect of geographical features in the land use decision-making process. The theoretical results are tested on Nepalese data. We find that conservation associated with ecotourism development is positively related to local welfare. Our theoretical results are consistent with the empirical evidence.
    Date: 2015–04
    URL: http://d.repec.org/n?u=RePEc:lam:wpaper:15-07&r=env
  33. By: Peter G. Levi; Michael G. Pollitt
    Abstract: Cost uncertainty has latterly come to be presented in the UK’s Department of Energy and Climate Change (DECC) Levelised Cost of Electricity (LCOE) estimates using sensitivities; ‘high’ and ‘low’ figures presented alongside central estimates. This presentation of uncertainty is limited in its provision of context, and of an overall picture of how costs and uncertainty vary over time. Two analyses are performed using the published DECC cost estimates for three electricity generation technologies – nuclear, offshore wind and Carbon Capture and Storage (CCS). The first analysis analyses cost trajectories from selected DECC LCOE estimates and presents them alongside contextual data, resulting in contextual cost landscapes. The second evaluates the associated temporal estimate uncertainty in the decade 2020-2030; an approach aimed at capturing the temporal consistency of estimates, alongside variations in magnitude. Nuclear estimates are found to be both the most consistent and lowest in magnitude. Offshore wind and CCS suffer from comparatively large cost and uncertainty premiums. The implications for the direction of policy are then discussed in the context of conflicting past experience and hidden costs.
    Keywords: cost projections; nuclear; wind power; carbon capture and storage
    JEL: L94
    Date: 2015–04–20
    URL: http://d.repec.org/n?u=RePEc:cam:camdae:1506&r=env
  34. By: Guojun He (Department of Economics, Hong Kong University of Science and Technology; Institute for Emerging Market Studies, Hong Kong University of Science and Technology); Maoyong Fan (Department of Economics, Ball State University); Maigeng Zhou (National Center for Chronic and Noncommunicable Disease Control and Prevention, Chinese Center for Disease Control and Prevention)
    Abstract: By exploiting exogenous variation in air quality during the 2008 Beijing Olympic Games, we estimate the effect of air pollution on mortality in China. We find that a 10-μg/m^3 (roughly 10%) decrease in PM_10 concentrations reduces monthly standardized all-cause mortality by 6.63%. The mortality reduction during the Olympics is mainly driven by fewer cardiocerebrovascular and respiratory deaths. Extrapolating our results to all urban areas in China, we estimate that the economic benefits from averted pre-mature deaths would range from 380 billion to 6 trillion Yuan annually if PM_10 concentrations were reduced to the WHO guideline level of 20 μg/m^3.
    Keywords: air pollution, mortality, particulate matter, 2008 Beijing Olympic Games
    JEL: Q53 I15 I18
    Date: 2015–01
    URL: http://d.repec.org/n?u=RePEc:hku:wpaper:201503&r=env
  35. By: Hübler, Michael
    Abstract: This paper sets up a two-period, two-sector trade model of a developing country which is abundant in a natural resource but scarce in industrial goods. It shows that lower future travel costs, rising demand for tourism and higher preferences for the environment slow down today’s depletion of the non-renewable natural resource that can be used for consumption or for exporting tourism services. The benefits that accrue from sustainable resource use can be distributed over time such that the myopic developing country and forward-looking industrialized countries, which demand tourism services, are better off.
    Keywords: international trade, tourism, non-renewable resource
    JEL: F18 H23 O13
    Date: 2014–11
    URL: http://d.repec.org/n?u=RePEc:han:dpaper:dp-551&r=env
  36. By: Catherine Hausman; Ryan Kellogg
    Abstract: Technological innovations in horizontal drilling and hydraulic fracturing have enabled tremendous amounts of natural gas to be extracted profitably from underground shale formations that were long thought to be uneconomical. In this paper, we provide the first estimates of broad-scale welfare and distributional implications of this supply boom. We provide new estimates of supply and demand elasticities, which we use to estimate the drop in natural gas prices that is attributable to the supply expansion. We calculate large, positive welfare impacts for four broad sectors of gas consumption (residential, commercial, industrial, and electric power), and a negative impact for producers, with variation across regions. We then examine the evidence for a gas-led "manufacturing renaissance" and for pass-through to prices of products such as retail natural gas, retail electricity, and commodity chemicals. We conclude with a discussion of environmental externalities from unconventional natural gas, including limitations of the current regulatory environment. Overall, we find that between 2007 and 2013 the shale gas revolution led to an increase in welfare for natural gas consumers and producers of $48 billion per year, but more data are needed on the extent and valuation of the environmental impacts of shale gas production.
    JEL: D12 L60 L71 Q41 Q53
    Date: 2015–04
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:21115&r=env
  37. By: Guojun He (Department of Economics, Hong Kong University of Science and Technology; Institute for Emerging Market Studies, Hong Kong University of Science and Technology); Maoyong Fan (Department of Economics, Ball State University); Maigeng Zhou (National Center for Chronic and Noncommunicable Disease Control and Prevention, Chinese Center for Disease Control and Prevention); Avraham Ebenstein (Department of Economics, Hebrew University of Jerusalem); Michael Greenstone (Department of Economics, University of Chicago; National Bureau of Economic Research (NBER)); Peng Yin (National Center for Chronic and Noncommunicable Disease Control and Prevention, Chinese Center for Disease Control and Prevention)
    Abstract: This paper examines the relationship between income, pollution, and mortality in China from 1991-2012. Using first-difference models, we document a robust positive association between city-level GDP and life expectancy. We also find a negative association between city-level particulate air pollution exposure and life expectancy that is driven by elevated cardiorespiratory mortality rates. The results suggest that while China's unprecedented economic growth over the last two decades is associated with health improvements, pollution has served as a countervailing force.
    Keywords: growth, pollution, life expectancy, China
    JEL: Q13 P28 Q28 Q53
    Date: 2015–02
    URL: http://d.repec.org/n?u=RePEc:hku:wpaper:201510&r=env
  38. By: Antonio Salazar Pessoa Brandão; Gervásio Castro de Rezende; Roberta Wanderley da Costa Marques
    Abstract: This paper analyses the Brazilian agricultural growth since January 1999, when a new exchange rate policy was adopted by the country. The analysis focuses on the behavior of the exchange rate and international commodity prices throughout the period 1999-2004. It is also analysed the behavior of cropped area in this recent period, with the conclusion that there has been a fast increase in area planted with grains in the agricultural years 2001/2002, 2002/2003 and 2003/2004, due almost entirely to the growth of soybeans area. The paper proposes that this expansion of area planted with soybeans was based preponderantly on the conversion of pastures. It is also suggested that expansion of soybeans should not be seen as antagonistic to the environmental policy, specially in what respects the protection of the Amazon forest. Este trabalho analisa o crescimento agrícola brasileiro após a mudança da política cambial, em janeiro de 1999. Toma como base, para isso, o comportamento da taxa de câmbio e dos preços internacionais das commodities ao longo do período 1999-2004. Discute, também, o comportamento da área cultivada nesse período recente, mostrando que ocorreu um aumento muito grande da área plantada com grãos nos anos agrícolas 2001/2002, 2002/2003 e 2003/2004, em grande parte devido à expansão da soja. O trabalho propõe que essa expansão tão rápida da área plantada com soja deu-se preponderantemente com base em conversão de pastagens. Sugere, ainda, que a expansão da soja não deve ser vista como antagônica à política ambiental, especialmente no que se refere à proteção da floresta amazônica.
    Date: 2015–01
    URL: http://d.repec.org/n?u=RePEc:ipe:ipetds:0150&r=env
  39. By: Debertin, David L.
    Abstract: Supplemental class materials links for the Debertin books available through ageconsearch.
    Keywords: microeconomics, applied microeconomics, production economics, agricultural production economics, production agriculture, agricultural production, consumption economics, undergraduate teaching, graduate teaching., Agricultural and Food Policy, Community/Rural/Urban Development, Consumer/Household Economics, Demand and Price Analysis, Environmental Economics and Policy, International Development, Production Economics, Teaching/Communication/Extension/Profession, A22, A23, A31, Q12, Q11, Q18, D11, D21, D24, L11,
    Date: 2015–04–13
    URL: http://d.repec.org/n?u=RePEc:ags:ukysps:201468&r=env
  40. By: Caroline Roussy; Aude Ridier; Karim Chaib
    Abstract: One way to reconcile the issues of productivity and environmental protection for field crops farmers is the implementation of systemic agroecological innovations. These innovations are complex combining traditional agricultural tools, such as the lengthening of rotations, with innovative production techniques such as precision agriculture. The adoption of these innovations creates additional uncertainty for farmers. Several studies have shown that risk aversion is a major break in the adoption of agricultural innovations. But others individual agronomic, economic and psychosocial determinants also affect the adoption decision process. However, among the determinants identified in the literature, few seem common and generalized to all production context. Other determinants, not directly observable, influence the adoption decision. This article presents a literature review to identify the role of observable and unobservable determinants, such as perceptions and preferences, in the adoption process of agroecological innovations.
    Keywords: adoption, agroecological innovation, stated preferences, perceptions, risk
    JEL: Q1 Q5 D8 D03
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:rae:wpaper:201503&r=env
  41. By: Meran, Georg; Schwarze, Reimund
    Abstract: This paper develops an analytical framework for studying the Baumol-Oates efficiency of traditional single instrument abatementpolicies vis-à-vis green defaults in the face of price inertia and deliberate defaultingby subpopulations. In this special case ofbehavioural heterogeneity, command and control approaches can outperform price-based instruments while pure tax/subsidy schemes need tobe adjusted in order to achievepolitically desired levels of abatement. We also prove that choice-preserving nudges are superior to any single-instrument policy in this case. An average marginal abatement cost rule is developed to optimise the green defaults and traditional policies of standards and prices under different degrees of market rigidity.
    JEL: H21 H23 L51 Q52 Q58
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:zbw:ufzdps:62015&r=env
  42. By: Carole Ropars-Collet; Mélody Leplat; Philippe Le Goffe; Marie Lesueur
    Abstract: The concept of multifunctionality of fishing activities is emerging, as fishery activities do not only provide commodity goods but have others functions (environmental, social, territorial, etc.). We choose to focus on the provision of amenities, such as the presence of fishing boats or direct sales of seafood, for which there is a demand that partly conditions the individual choices of visit on the coastline. We used choice experiments to estimate willingness to pay for these amenities produced jointly by commercial fishing. The empirical study was conducted on a sample of one thousand people we surveyed along the coasts of French Channel and of the North Sea.
    Keywords: Multifunctional fishery, Non-market value, Choice experiments
    JEL: C35 C9 Q22 Q26
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:rae:wpaper:201502&r=env
  43. By: Freyling, Vera; Schepelmann, Philipp; Buhl, Johannes; Biesecker, Adelheid; von Winterfeld, Uta; Best, Benjamin
    Abstract: In early September 2014, about 4.000 scientists, activists and artists at the 4th International Conference on Degrowth sent out two messages. 1. Industrialized societies will change, either by disaster or by design. Accelerated resource exploitation and climate change can force societies into a transition. Or they swiftly develop new forms of economic, political and social organization which respect the planetary boundaries. 2. "Degrowth" has become a new social movement which translates scientific insights into cultural change, political change and social practice. Hence, the conference itself was an experiment on the potentials and limits of share economy, commoning and sufficiency. A team of young scholars and activists from different German research institutes and non-govern- mental organisations prepared the conference. The team of the Wuppertal Institute was partly involved in the preperation of the conference. Scientists from all research groups took part in the conference, presenting and discussing project results. The publication is a collection of contributions of the Wuppertal Institute to the conference and covers pivotal issues of the degrowth-debate: indicator development (Freyling & Schepelmann), working time reduction (Buhl), feminist theory (Biesecker & Winterfeld), and urban transition (Best).
    Abstract: Anfang September 2014 sendeten circa 4.000 Wissenschaftler(innen), Aktivist(inn)en und Künstler(innen) auf der vierten internationalen Degrowth Konferenz in Leipzig zwei Botschaften aus: 1. Industrialisierte Gesellschaften werden sich verändern, mittels Desaster oder Design. Zunehmende Ressourcenausbeutung und Klimawandel können Gesellschaften zur Transition zwingen. Es sei denn sie entwickeln rasch neue Formen ökonomischer, politischer und sozialer Organisation, die die Grenzen des Planeten berücksichtigen. 2. "Degrowth" ist zu einer neuen sozialen Bewegung geworden, die wissenschaftliche Einsichten in kulturellen Wandel, politischen Wandel und soziale Praxis übersetzt. Die Konferenz selbst war ein Experiment bezüglich der Potenziale und Grenzen von share economy, commoning und Suffizienz. Die Konferenz wurde von jungen Wissenschaftler(inne)n und Aktivist(inn)en diverser deutscher Forschungsinstitute und Nichtregierungsorganisationen gestaltet. Das Team des Wuppertal Instituts hat teilweise an der Konferenzvorbereitung mitgewirkt. Wissenschaftler(innen) aller Forschungsgruppen nahmen an der Konferenz teil, präsentierten und diskutierten Projektergebnisse. Die Publikation ist eine Sammlung der Konferenzbeiträge aus dem Wuppertal Institut, sie umfasst alle Schlüsselthemen der degrowth-Debatte: Entwicklung von Indikatoren (Freyling & Schepelmann), Arbeitszeitverkürzung (Buhl), Feministische Theorie (Biesecker & Winterfeld), und Urbane Transition (Best).
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:zbw:wupimp:8&r=env
  44. By: Ackah, Ishmael; Asomani, Mcomari
    Abstract: Renewable energy consumption has been identified as a potential solution to the intermittent power supply in Ghana. Recently, a Renewable Energy Act has been passed which has a target of 10% of renewable energy component in Ghana’s energy mix by 2020. Whilst effort is been made to enhance supply through feed in tariffs, education and tax reduction on renewable energy related equipment, there is the need to understand the drivers of renewable energy demand. In this study, the general unrestricted model through Autometrics is used to estimate the determinants of renewable energy demand in Ghana. The results indicate that both economic factors and non-economic affect the demand for renewable energy. In addition, the underlying energy demand trend exhibits energy using behaviour. The study recommends that economic factors such as consumer subsidies should be considered when promoting renewable energy demand.
    Keywords: Renewable energy, energy consumption, Autometrics, Ghana
    JEL: Q2 Q21 Q4 Q41 Q42 Q43
    Date: 2015–04–15
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:63870&r=env
  45. By: Sanne Zwart
    Abstract: Housing conditions in Belgium are among the best in OECD countries according to the Better Life Index, as dwellings are of high quality and large, and housing costs are average. However, the steep increase in house prices since 2003 has put market access for first-time buyers under pressure. Housing affordability is also deteriorating for the poor, as demand for social housing has not been met while the private rental market has become expensive. As a result, access to housing is at risk of becoming less equitable if the young and poorer people are priced out. Affordability for poorer people could be improved by expanding the regional rental allowance schemes. In parallel, scaling down the disproportional support for homeownership would free up public resources and reduce the bias towards homeownership. Other challenges to the efficiency of the housing market are posed by the high level of greenhouse gas emissions due to the old age of the housing stock and the low residential mobility, which harms the labour market and contributes to congestion and air pollution. To maintain an efficient housing market, policies should aim at increasing building densities in residential areas. Tilting taxation from transaction to recurrent taxes would lower barriers for residential mobility and contribute to labour market flexibility. This Working Paper relates to the 2015 OECD Economic Survey of Belgium (www.oecd.org/eco/surveys/economic-survey-belgium.htm)<P>Préserver l'efficacité et l'équité sur le marché du logement en Belgique<BR>Selon l’Indicateur du vivre mieux, les conditions de logement en Belgique sont parmi les meilleures de la zone OCDE : les habitations sont grandes et de bonne qualité et les coûts de logement se situent dans la moyenne. Cependant, la forte hausse des prix de l’immobilier enregistrée depuis 2003 rend l’achat de plus en plus difficile pour les primo-accédants. La capacité financière d’accès au logement se dégrade également pour les pauvres, dans la mesure où l’offre de logements sociaux est insuffisante pour répondre à la demande et le marché locatif privé est devenu cher. Par conséquent l’accès au marché du logement pourrait devenir moins équitable si les jeunes et les pauvres en sont exclus à cause des prix. Il est possible d’améliorer l’accès des personnes pauvres au logement en développant les systèmes d’allocations de logement régionaux pour locataires. Parallèlement, la réduction du soutien à l’accession à la propriété, actuellement disproportionné, libérerait des ressources publiques et atténuerait le biais en faveur de la propriété de la résidence principale. L’efficacité du marché du logement est confrontée à d’autres défis : le niveau élevé des émissions de gaz à effet de serre, dû à l’ancienneté de l’habitat, et la faible mobilité résidentielle, qui pénalise le marché du travail et contribue à l’encombrement routier et à la pollution atmosphérique. Pour préserver l’efficacité du marché du logement, il faudrait accroître les densités de construction dans les zones résidentielles. Une réorientation de la fiscalité des taxes sur les transactions immobilières vers les impôts récurrents contribuerait à abaisser les obstacles à la mobilité résidentielle et à améliorer la flexibilité du marché du travail. Ce Document de travail se rapporte à l’Étude économique de l’OCDE de la Belgique, 2015 (www.oecd.org/fr/eco/etudes/etude-econom ique-belgique.htm)
    Keywords: Belgium, mortgage markets, housing market, rental market, housing prices, residential energy efficiency, housing subsidies, property taxation, rental allowances, land use, housing policies, fiscalité immobilière, allocation logement, efficacité énergétique résidentielle, marché du logement, politiques du logement, aide au logement, aménagement du territoire, marché immobilier, marchés hypothécaires, prix des logements, Belgique
    JEL: G21 H24 H71 O18 Q53 R21 R31 R52
    Date: 2015–04–23
    URL: http://d.repec.org/n?u=RePEc:oec:ecoaaa:1208-en&r=env
  46. By: Claudio Ferraz
    Abstract: The extent of deforestation in the Brazilian Amazon grew significantly in the last 20 years. Approximately 400,000 km2 of tropical forest were cleared from 1978 to 1998. Land conversion to pasture and crop areas were the main sources of deforestation, though the contribution of logging increased significantly in the nineties. This paper uses panel data for eight states of the Brazilian Amazon, from 1980 to 1998, to estimate a model of the determinants of crop area and cattle herd expansion within the region. Results show that the expansion of crop area is determined by changes in land prices, government agriculture credit and roads while the growth of cattle herd is mainly driven by the decrease in the price of cattle head and the expansion of the road network. O desflorestamento na Amazônia aumentou significativamente durante os últimos 20 anos. Aproximadamente 400.000 km2 de florestas tropicais foram devastados entre 1978 e 1998, sendo a sua maioria convertida em pastagens e lavouras. Este trabalho usa dados de painel de oito estados da Amazônia, de 1980 a 1998, para estimar um modelo dos determinantes da expansão da área plantada e de cabeças de gado na região. Os resultados mostram que a expansão da área plantada está associada a variações de preços da terra, crédito agrícola e estradas, enquanto o aumento do número de cabeças de gado está determinado principalmente pela redução do preço do boi e pela expansão da malha rodoviária.
    Date: 2015–01
    URL: http://d.repec.org/n?u=RePEc:ipe:ipetds:0106&r=env
  47. By: Vidakovic, Neven
    Abstract: This paper analyses the current state of the renewable energy in Croatia and proposes what can be done to speed up the process of transition towards the increase in consumption of renewable energy in Croatia. The process of transition is analyzed from the perspective of three main participants who are relevant for the process: academic researches, government as policy makers and investors. The paper finds that the academic research has done a significant progress towards renewable energies and has thoroughly researched many opportunities for renewable energies in Croatia, but lack of clearly defined government policies has hindered investors and new projects. In several cases the policies are obsolete or undefined. There is a need for fast and focused government action. Because of the short time span, large scale strategies should be avoided and project-focused policies should be implemented. This paper proposes several actions which could be implemented in a short time span to make the Croatian transition towards renewable energy faster.
    Keywords: renewable energy, strategy, economic policies
    JEL: H23 H54 Q28
    Date: 2014–07
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:63957&r=env
  48. By: Ronaldo Seroa da Motta; Claudio Ferraz
    Abstract: This study applies distinct methodological forest accounting approaches, following Vincent and Hartwick (1997) lines, to estimate economic depreciation of timber exploitation in the Brazilian Amazon region. Although our results may be not definitive ones due to data availability problems, this exercise has proved to bring about issues which, though are theoretical and methodologically fully recognised, are not always revealed in other regional studies. High timber stocks, lack of well defined property rights and informal economic relations are issues related to the Amazonian case that require great deal of caution when one is applying economic depreciation methodologies, as will be addressed on the basis of our results. O objetivo principal deste estudo é estimar o valor de depreciação de florestas da produção madeireira na região amazônica. Utilizam-se três principais metodologias recomendadas na literatura para analisar-lhes a capacidade em capturar esses valores de depreciação na região, graças às suas características de livre acesso que fragilizam a definição de direitos de propriedades. Identifica, ainda, diferenças metodológicas associadas a alguns fatores teóricos como taxas de desconto apropriadas e comportamento dinâmico ótimo que também têm um papel fundamental no caso da Amazônia. Conclui-se que a valoração das perdas de outros serviços relacionados à deterioração de capital natural na Amazônia será necessária para viabilizar o instrumental de contabilidade ambiental como instrumento de planejamento ambiental na região.
    Date: 2015–01
    URL: http://d.repec.org/n?u=RePEc:ipe:ipetds:0077&r=env
  49. By: Paul Schreyer; C. Obst
    Abstract: Despite its importance, regular measurement of the value of natural resources at national level is still in its infancy and often disconnected from valuation approaches for other assets. We show that there exists a consistent approach towards valuation that applies to subsoil assets and produced capital alike. We further align accounting in physical and monetary terms and construct standard volume and price indexes of energy and mineral resources with an application to Australia. Finally, we examine the link between our measure of subsoil wealth and indicators of sustainability. Overall, this paper demonstrates how the bodies of work on capital theory, index number measurement and growth accounting on the one hand, and valuation and measurement of natural resources on the other can be aligned. From a practical accounting perspective this alignment should aid in the implementation of broader measures of wealth at national level which are required for policy and analysis.<BR>En dépit de leur importance dans l’estimation des richesses d’un pays, les ressources naturelles commencent à peine à être prises en compte de façon systématique et sont bien souvent évaluées indépendamment des autres actifs. Dans ce rapport, nous verrons qu’il existe une approche cohérente pouvant s’appliquer aussi bien à l’évaluation des richesses du sous-sol qu’à celles du capital produit. Nous combinerons comptabilités physique et monétaire et définirons un indice des prix et du volume de l’énergie et des ressources naturelles avec une application à l’Australie. Enfin, nous examinerons le lien entre notre mesure des richesses du sous-sol et les indicateurs de développement durable. Nous démontrerons qu’il est possible d’aligner, d’un côté, les travaux sur la théorie du capital, la mesure des indices et la comptabilité de la croissance et, de l’autre, la valorisation et la mesure des ressources naturelles. Concrètement, cet alignement devrait permettre de mesurer plus précisément l’étendue des richesses au niveau national, et donc offrir une meilleure analyse servant de base aux politiques mises en place.
    Date: 2015–04–07
    URL: http://d.repec.org/n?u=RePEc:oec:envddd:2015/2-en&r=env
  50. By: Edward Perry; GianCarlo Moschini (Center for Agricultural and Rural Development (CARD)); David A. Hennessy (Center for Agricultural and Rural Development (CARD))
    Abstract: Many decisions in agriculture are made over combinations of inputs and/or practices that may be complements. The presence of complementarity among producer decisions can have deep implications for market outcomes and for the effectiveness of policies intended to influence them. Identifying complementarity relations, however, is a challenging pursuit. Drawing on recent methodological advances, in this paper we propose a new test for complementarity between glyphosate tolerant soybeans and conservation tillage that overcomes limitations of previous studies. Specifically, we develop a structural discrete choice framework of joint soybean-tillage adoption that explicitly models both complementarity and unobserved heterogeneity. The model is estimated with a large dataset of farm-level choices that spans the 1998–2011 period and contains repeated observations for many of the sampled individuals. We find that glyphosate tolerant soybeans and conservation tillage are indeed complementary practices, a conclusion supported by several robustness checks. In addition, our estimation shows that farm operation scale promotes the adoption of both conservation tillage and glyphosate tolerant seed, and that all of higher fuel prices, more droughty conditions, and soil erodibility increase use of conservation tillage. We also apply our results to simulate annual adoption rates for conservation tillage in a scenario without glyphosate tolerant soybeans available as a choice. We find that the adoption of conservation tillage has been about ten percent higher due to the advent of glyphosate tolerant soybeans. Key Words: complementarity, conservation tillage, discrete choice models, genetically engineered crops, mixed multinomial logit, supermodularity, technology adoption, unobserved heterogeneity. JEL codes: C35, D22, Q12, Q55
    Date: 2015–04
    URL: http://d.repec.org/n?u=RePEc:ias:cpaper:15-wp555&r=env

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