nep-env New Economics Papers
on Environmental Economics
Issue of 2015‒07‒11
25 papers chosen by
Francisco S. Ramos
Universidade Federal de Pernambuco

  1. Should we extract the European shale gas? The effect of climate and financial constraints By Fanny Henriet; Katheline Schubert
  2. Public Preferences for Carbon Tax Attributs By Z. Eylem Gevrek; Ayse Uyduranoglu
  3. Press and Leaks: Do Newspapers Reduce Toxic Emissions? By Pamela Campa
  4. Using Stated Preference Methods to Design Cost-Effective Subsidy Programs to Induce Technology Adoption. An Application to a Stove Program in Southern Chile By Felipe Vásquez; Walter Gómez; Hugo Salgado; Carlos Chávez
  5. Green and Gold: Promoting Eco-Adventure and Cultural Tourism for Inclusive and Sustainable Growth By Picazo, Oscar F.
  6. Lobbying over Exhaustible-Resource Extraction By Achim Voss; Mark Schopf
  7. Integrating social and environmental dimensions in public procurement: one small step for the internal market, one giant leap for the EU? By Eric van den Abeele
  8. Evaluation of the APEC Environmental Goods Initiative: A Dominant Supplier Approach By Manzano, George N.; Prado, Shanti Aubren
  9. Urban Agenda and Urban Sustainability Strategies. Taking Stock of Policy Implementation and Policy Discussion By Stephanie Barnebeck; Yannick Kalff
  10. Evaluating the Purchase Process of Household Appliances Accounting for Consumers’ Attitudes towards Eco-Friendly and Sustainable Consumption Behavior By Banerjee, Tanushri; Banerjee, Arindam
  11. The Agro-Food Industry, Public Health and Environmental Protection: Investigating the Porter Hypothesis in Food Regulation By PONSSARD Jean-Pierre; SINCLAIR DESGAGNÉ Bernard; SOLER Louis-Georges; GIRAUD HERAUD Eric
  12. Economic Implications of Historically Evolved Self-Efficacy: Agent-Based Modeling and Empirical Evidence from Rural Ghana By Wuepper, David; Drosten, Barbara
  13. Quantifying through ex post assessments the micro-level impacts of sovereign disaster risk financing and insurance programs By De Janvry,Alain F.
  14. Protecting biodiversity by developing bio-jobs : A multi branch analysis with an application on French data By Jean De Beir; Céline Emond; Yannick L'Horty; Laetitia Tuffery
  15. Determining the Feasibility of Establishing New Multiple Use Marine Protected Areas in Chile. By Felipe Vásquez; Jeanne Simon; Ximena Paz-Lerdon
  16. The indirect cost of natural disasters and an economic definition of macroeconomic resilience By Hallegatte,Stephane
  17. Willingness-To-Pay For Sporting Success of Football Bundesliga Teams By Pamela Wicker; John C. Whitehead; Bruce K. Johnson; Daniel S. Mason
  18. Unregulated high seas fisheries: the “interlopers” issue By Manuel P. Coelho; José B. Filipe; Manuel A. Ferreira
  19. Economy-wide Estimates of Rebound Effects: Evidence from Panel Data By Adetutu, Morakinyo; Glass, Anthony; Weyman-Jones, Thomas
  20. Increasing Coverage of Antiretroviral Therapy and Male Medical Circumcision in HIV Hyperendemic Countries: A Cost-Benefit Analysis By Geldsetzer, Pascal; Bloom, David E.; Humair, Salal; Bärnighausen, Till
  21. Nitrogen Trading in Lake Taupo: An Analysis and Evaluation of an Innovative Water Management Policy By Madeline Duhon; Suzi Kerr
  22. Spatial Distribution of Disposal Sites¦ Empirical Evidence from Japan By Yuichi Ishimura; Kenji Takeuchi
  23. The Impact of LNG Export Expansion in Queensland, with special emphasis on the effects of increased gas prices By Philip Adams
  24. Dynamics of Land Use Competition in India: Perceptions and Realities By Sharma, Vijay Paul
  25. Fuel for Economic Growth? By Gars, Johan; Olovsson, Conny

  1. By: Fanny Henriet (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics, CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS); Katheline Schubert (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics, CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS)
    Abstract: In the context of the deep contrast between the shale gas boom in the United States and the recent ban by France of shale gas exploration, this paper explores whether climate policy justifies developing more shale gas, taking into account environmental damages, both local and global, and addresses the question of a potential arbitrage between shale gas development and the transition to clean energy. We construct a Hotelling-like model where electricity may be produced by three perfectly substitutable sources: an abundant dirty resource (coal), a non-renewable less polluting resource (shale gas), and an abundant clean resource (solar). The resources differ by their carbon contents and their unit costs. Fixed costs must be paid for shale gas exploration, and before solar production begins. Climate policy takes the form of a ceiling on atmospheric carbon concentration. We show that at the optimum tightening climate policy always leads to bringing forward the transition to clean energy. We determine conditions under which the quantity of shale gas extracted should increase or decrease as the ceiling is tightened. To address the question of the arbitrage between shale gas development and the transition to clean energy, we assume that the social planner has to comply to the climate constraint without increasing energy expenditures. We show that when the price elasticity of electricity demand is low, a binding financial constraint leads to an overinvestment in shale gas and postpones the switch to the clean backstop. We calibrate the model for Europe and determine whether shale gas should be extracted, depending on the magnitude of the local damage, as well as the potential extra amount of shale gas developed because of a financial constraint, and the cost of a moratorium on extraction.
    Date: 2015–06
  2. By: Z. Eylem Gevrek (Department of Economics, University of Konstanz, Germany); Ayse Uyduranoglu (Istanbul Bilgi University, Turkey)
    Abstract: The impacts of climate change are already visible throughout the world. Recognizing the threats posed by climate change, the Durban Platform, the 17th Session of the Conference of Parties (COP 17), underscores that the global nature of climate change calls for the widest possible cooperation and ambitious action by all countries. A crucial starting point for the design of effective and publicly acceptable policies is to explore public preferences for climate policy instruments. Using a choice experiment, this study investigates public preferences for carbon tax attributes in a developing country context. The results account for heterogeneity in preferences and show that Turkish people prefer a carbon tax with a progressive cost distribution rather than one with a regressive cost distribution. The private cost has a negative effect on the probability of choosing the tax. Earmarking carbon tax revenues increases the public acceptability of the tax. Moreover, there is a preference for a carbon tax that promotes public awareness of climate change.
    Keywords: Carbon taxes, Choice experiment, Latent class model, Mixed logit model, Preferences, Turkey
    JEL: H Q
    Date: 2015–07–08
  3. By: Pamela Campa (University of Calgary)
    Abstract: This paper investigates whether media presence affects corporate environmental decisions. Using data on plant-level toxic emissions in 1996-2009 from the US Environmental Protection Agency's Toxics Release Inventory and newly collected data on newspapers locations and content, I find that an increase in the number of newspapers near a plant raises the press coverage of the plant's toxic emissions and reduces the amount of these emissions. The effect of newspapers on toxic emissions is specific to industries that produce consumer goods, and is larger in counties that were subject to extreme levels of cancer incidence in the recent past.
    Date: 2015–07–01
  4. By: Felipe Vásquez; Walter Gómez; Hugo Salgado; Carlos Chávez (School of Business and Economics, Universidad del Desarrollo)
    Abstract: We study the design of an economic incentive based program –a subsidy- to induce adoption of more efficient technology in a pollution reduction program in southern Chile. Stated preferences methods, contingent valuation (CV), and choice experiment (CE) are used to estimate the probability of adoption and the willingness to share the cost of a new technology by a household.
    Keywords: Stated preferences, cost-effectiveness, environmental policy, urban pollution, households, contingent valuation, choice experiments.
    Date: 2013–08
  5. By: Picazo, Oscar F.
    Abstract: This paper briefly reviews the literature on the emerging concept of eco-adventure and cultural tourism, dubbed "green and gold tourism," respectively. It provides the rationale for conducting such a study in the Philippines (why the concern for inclusivity and environmental sustainability in tourism). It then establishes the feasible scope of such study and lists illustrative activities of inclusive and sustainable green and gold tourism. It also identifies concerns and issues about green and gold tourism in APEC countries and in the Philippines. Finally, it classifies emerging good practices in this area, including volunteer travel, promotion of home stays, community-organized and -owned tourism activities, establishing nonmainstream tourist routes and destinations, and tourists' involvement in cultural preservation and eco-rehabilitation.
    Keywords: Philippines, eco-adventure tourism, cultural tourism, green tourism, gold tourism, inclusive tourism, sustainable tourism, nontraditional tourism
    Date: 2015
  6. By: Achim Voss (University of Muenster); Mark Schopf (University of Paderborn)
    Abstract: Republished as CIE Working Paper 2014-06
    Keywords: Environmental Policy, Exhaustible Resources, Political Economy, Lobbying, Nash Bargaining, Dynamic Programming
    JEL: D72 Q31 Q38 Q58
    Date: 2015–03
  7. By: Eric van den Abeele
    Abstract: This working paper provides a legal analysis of the inclusion of social and environmental clauses in the modernisation of the EU's public procurement directives.
    Keywords: Environment, EU legislation, Labour law, Social policy
    Date: 2014–10
  8. By: Manzano, George N.; Prado, Shanti Aubren
    Abstract: The paper evaluates the feasibility of sectoral liberalization of environmental goods for the Asia-Pacific Economic Cooperation (APEC). Using the model originally developed by Wonnacott, it argues for the liberalization of goods predominantly supplied by APEC members, thereby minimizing the free rider problem that usually afflicts most favored nation liberalization. The paper then ranks the different items in the APEC list of environmental goods according to economic advisability, given the predominant supplier framework. It thus demonstrates the economic rationale why APEC, as a whole, should consider liberalizing a number of environmental goods. The paper also examines the distributional impact of the proposed scheme on the individual members, particularly on the trade interest of the Philippines.
    Keywords: Philippines, Asia-Pacific Economic Cooperation (APEC), environmental goods, services, tariff, trade liberalization
    Date: 2015
  9. By: Stephanie Barnebeck; Yannick Kalff
    Abstract: Socio-ecological transitions are a main project, current EU policies, national environmental poli-tics, and regional as well as local action address. Manifold approaches exist and the European Union is anxious to coordinate and facilitate the process of a consolidated transition. Therefore, a policy paper is being developed, the European Urban Agenda, which operates on all govern-mental levels to allow cities more capability in realising said socio-ecological transition accord-ing to their own structural, spatial, social, economic, and environmental predispositions. In a broad study of 40 cities in Europe, we gathered a vast amount of empirical data that indi-cates the individual approaches towards a transition as well as their relations to European and national policies. This paper presents an extension of this research results. We depart from the results of the ROCSET study that is centred on the possibilities of self-organisation and ask about local sustainability strategies with concrete aims and goals. Further, the results of a con-sultation process on this European Urban Agenda are interpreted as an indicator on how the general perception of EU urban policies differs from actor to actor. Such an Agenda can con-tribute to unify individual approaches towards sustainability and consolidate strategies while maintaining the individuality of the local approaches. This paper starts with an outline of the research of the ROCSET study. In the second chapter, the actual urban sustainability strategies are reconstructed to take stock of the current situation in our forty researched cities. The third chapter analyses the consultation process on the Euro-pean Urban Agenda that then can be taken as an indicator on what the expectations for such an agenda are, and how they might reflect currently existing urban strategies.
    Keywords: Academic research, Beyond GDP, Demographic change, Ecological innovation, European economic policy, European governance, Good governance, Holistic and interdisciplinary approach, Research, Social innovation, Socio-ecological transition, Sustainable growth
    JEL: C01 O18 Q01 Q28 Q42 Q48 Q53 Q57 Q58 R1
    Date: 2015–06
  10. By: Banerjee, Tanushri; Banerjee, Arindam
    Abstract: Globally depleting fuel resources like coal, oil and gas has triggered discussions in various forums in India emphasizing the significance of renewable energy sources like solar, hydro, wind and bio gas for future sustenance of society. Anticipating a shift of the consumer mindset towards Greener Technology products, organizations have identified this niche market and introduced a range of products for various customer segments. We have used the Howard Sheth Model of consumer behavior to understand how consumers generally look at broad range of factors including energy efficiency when purchasing major appliances, with the factors differing both in nature and order of importance across appliance types. Although there exists significant literature on consumers’ purchase decision, there is not much literature available for consumers’ purchase decision in emerging countries of home appliances considering environmentally friendly factors. This research work aims to study the growing energy saving consciousness and environmental friendly considerations during purchase decision of consumers in India. This is in the context of the purchase of 2 home appliances – the refrigerator and the air-conditioner in Gujarat post 2010. Indicators like star rating have been used as influencing factor on consumers’ decision during purchase. It will provide an understanding of the various parameters that are considered by consumers and the degree to which they influence during the purchase of air-conditioners and refrigerators.
  11. By: PONSSARD Jean-Pierre; SINCLAIR DESGAGNÉ Bernard; SOLER Louis-Georges; GIRAUD HERAUD Eric
    Abstract: Sustainable food concerns have pushed public authorities to act by means of regulations,\r\nstandards and other devices, and businesses to innovate in their products and production processes.\r\nWe argue that the Porter Hypothesis – which asserts that properly designed and implemented\r\nenvironmental regulation might be good for society as well as the targeted firms – might well be verified in this context. After reviewing and illustrating the working principles and main criticisms of this hypothesis, we provide a more in-depth discussion of nutritional issues. While the literature generally points to organizational imperfections and market failures to validate the Porter Hypothesis,we submit and model another rationale for the agro-food industry, a rationale that is based on consumer behavior.
    Keywords: Sustainable food; Regulation; Innovation; Consumer behavior; Porter Hypothesis.
    JEL: L13 L51 Q55 Q58
    Date: 2015
  12. By: Wuepper, David; Drosten, Barbara
    Abstract: We argue that self-efficacy is important for economic performance. Self-efficacy is at the psychological core of agency and entrepreneurship. It enables people to learn, and change and act to better their livelihood. In an agent-based model we show how different levels of individual self-efficacy can evolve as a reaction to environmental demands and rewards to human intervention. The basic idea is that people learn how to best survive in their specific environment and teach this knowledge to their children. Because this cultural heritage only adapts very slowly to the current environment, people might have self-efficacy levels that better fit to the context of their ancestors than to their own. With empirical data from Ghana, we defind that different-levels of self-efficacy have developed from different historic environmental conditions and directly influence today´s household incomes, controlling for observable incentives and constraints. Specifically, the historic returns on agricultural investments are found to have shaped the cultural evolution of self-efficacy. In contrast, current returns on investment explain far less variation in self-efficacy. We find that this cultural trait significantly affects income levels through shaping the farmers’ investment behavior. Regarding the measurement of self-efficacy, we find self-efficacy to be a process- rather than a goal-oriented belief and it is mainly culturally transmitted.
    Keywords: Self-Efficacy; Economic Performance; Economic Development, Economic History, Cultural Evolution; Smallholder Farming
    JEL: D22 N57 O12 O13 O21 Q12
    Date: 2015–06
  13. By: De Janvry,Alain F.
    Abstract: Uninsured natural disasters can have devastating effects on human welfare and economic growth, particularly in developing countries where large segments of the population are in poverty and government resources and capacity to assist in relief, recovery, and reconstruction are limited. Therefore there is interest in exploring how these countries can design and implement disaster relief financing and insurance programs. This paper discusses four aspects of the microeconomics of disaster relief financing and insurance programs that are important for the ex post impact evaluation of such programs: (1) use of game setups to analyze the private willingness-to-pay for disaster protection through risk transfer or risk retention instruments; (2) use of ex post analysis of existing disaster relief financing and insurance schemes (such as Mexico?s programs) to analyze the willingness to provide political support to such schemes; (3) use of ex post analysis of existing schemes to analyze not only ex post coping with shock, but also the ex ante risk management impact of disaster relief financing and insurance schemes, with the expectation that the latter can have a large effects on growth; and (4) use of mainly global data to do ex post impact analysis of natural disasters and the resilience-enhancing value of disaster relief financing and insurance schemes (examples exist for the disaster-impact relationship that can be extended to the role of disaster relief financing and insurance in risk reduction, coping with shock, and risk management). The paper proposes concrete research projects to pursue the analysis of these four dimensions of micro-level impacts of disaster relief financing and insurance.
    Keywords: Labor Policies,Hazard Risk Management,Insurance&Risk Mitigation,Climate Change Economics,Natural Disasters
    Date: 2015–07–02
  14. By: Jean De Beir; Céline Emond; Yannick L'Horty; Laetitia Tuffery
    Date: 2015
  15. By: Felipe Vásquez; Jeanne Simon; Ximena Paz-Lerdon (School of Business and Economics, Universidad del Desarrollo)
    Abstract: This paper evaluates the feasibility of establishing a Multiple Use Marine Protected Area. The methodology was applied to evaluate three proposed sites in Chile with diverse conservation needs, social stress and poverty levels, and different economic activities (small-scale fishing, heavy industry and mining activities). We use two broad categories for the evaluation: Socio-economic and political-institutional. The methodology uses a combination of secondary data with personal interviews, workshops and focus groups with fishermen, unions, politicians, social organizations, etc., from different political, social and economic background to characterize current and potential natural and social resources and to evaluate in an ordinal scale the feasibility of establishing the protected area.
    Keywords: Protected Coastal Marine Areas, feasibility, sustainable development, governance.
    Date: 2015
  16. By: Hallegatte,Stephane
    Abstract: The welfare impact of a disaster does not depend only on the physical characteristics of the event or its direct impacts in terms of lost lives and assets. Depending on the ability of the economy to cope, recover, and reconstruct, the reconstruction will be more or less difficult, and the welfare effects smaller or larger. This ability, which can be referred to as the macroeconomic resilience of the economy to natural disasters, is an important parameter to estimate the overall vulnerability of a population. Here, resilience is decomposed into two components: instantaneous resilience, which is the ability to limit the magnitude of the immediate loss of income for a given amount of capital losses, and dynamic resilience, which is the ability to reconstruct and recover quickly. The paper proposes a rule of thumb to estimate macroeconomic resilience, based on the interest rate (a higher interest rate decreases resilience and increases welfare losses), the reconstruction duration (a longer reconstruction duration increases welfare losses), and a ?ripple-effect? factor that increases or decreases immediate losses (negative if enough idle resources are available to cope; positive if cross-sector and supply-chain issues impair the production of non-affected capital). An optimal risk management strategy is very likely to include measures to reduce direct impacts (disaster risk reduction actions) and measures to reduce indirect impacts (resilience building actions).
    Keywords: Economic Theory&Research,Disaster Management,Hazard Risk Management,Climate Change Economics,Natural Disasters
    Date: 2015–07–02
  17. By: Pamela Wicker; John C. Whitehead; Bruce K. Johnson; Daniel S. Mason
    Abstract: This study shows that fans and people living in the region of 28 Football Bundesliga teams from all three divisions are willing to support their team financially. Survey respondents were asked for their willingness-to-pay to avoid a negative outcome (e.g., relegation) and to achieve a positive outcome (e.g., promotion). Fan bonds are applied as an alternative payment vehicle within the contingent valuation method. The results show that different factors affect the decision to support the team and the actual amount of willingness-to-pay – for attendees and non-attendees. Public goods are particularly relevant for reporting a positive willingness-to-pay. Key Words: Contingent valuation method; Bundesliga; Fan bonds; Public goods; Sporting success; Willingness-to-pay
    JEL: L83 H41
    Date: 2015
  18. By: Manuel P. Coelho (CIRIUS, SOCIUS; ISEG/Universidade de Lisboa;); José B. Filipe (2 UNIDE; ISCTE-IUL;); Manuel A. Ferreira (2 UNIDE; ISCTE-IUL;)
    Abstract: Illegal behaviour and public enforcement of law are important theoretical and empirical subjects for Economics. They were dormant in economic scholarship, until the article of Becker, 1968, “Crime and Punishment: An Economic Approach”. In the context of Fisheries Economics, the problem can be seen as an externality arising when exclusive property rights are absent. That absence depends on the costs of defining and enforcing exclusivity and the problem becomes more complex when fisheries are transboundary. The paper combines standard Economics of Fisheries analysis with the Theory of “Crime and Punishment”. The conclusions are used to discuss the so-called issue of “interlopers” in High Sea fisheries. The “unfinished business” of the Law of the Sea, that is, the imprecise definition of property rights in the areas of High Sea adjacent to Economic Exclusive Zones, were in the origin of a lot of “fish wars” in the nineties. The 1995 UN agreement on transboundary stocks and highly migratory species pretended to be a new form of cooperation, including the introduction of new forms of enforcement and compliance with the law, affecting fishing enterprises and convenience-flag vessels. However, with the legal procedures that were proposed, it seems broadly bounded, the potential effect of enforcement and regulation.
    Keywords: Fisheries, High Seas, Enforcement, Interlopers
    JEL: K42 Q22
    Date: 2015–02
  19. By: Adetutu, Morakinyo; Glass, Anthony; Weyman-Jones, Thomas
    Abstract: Energy consumption and greenhouse emissions across many countries have increased overtime despite widespread energy efficiency improvements. One explanation offered in the literature is the rebound effect (RE), however there is a debate about the magnitude and appropriate model for estimating RE. Using a combined stochastic frontier analysis and two-stage dynamic panel data approach for 55 countries covering 1980-2010, we explore these two issues of magnitude and model. Our central estimates indicate that, in the short-run, 100% energy efficiency improvement is followed by 90% rebound in energy consumption, but in the long-run it leads to a 36% decrease in energy consumption. Overall, our estimated cross-country RE magnitudes indicate the need to consider or account for RE when energy forecasts and policy measures are derived from potential energy efficiency savings.
    Keywords: Energy Efficiency, Input Distance Function, Panel Data, Rebound Effects, Stochastic Frontier Analysis
    JEL: C23 D2 Q43
    Date: 2015–07–02
  20. By: Geldsetzer, Pascal (Harvard School of Public Health); Bloom, David E. (Harvard University); Humair, Salal (Harvard School of Public Health); Bärnighausen, Till (Harvard School of Public Health)
    Abstract: HIV continues to cause the largest number of disability-adjusted life years of any disease in HIV hyperendemic countries (i.e., countries with an adult HIV prevalence >15%). We compare the benefits and costs of two proven biological interventions to reduce the health losses due to the HIV epidemic in hyperendemic countries from 2015 through 2030: 1) increasing ART coverage to 90% among HIV-infected adults with a CD4-cell count <350 cells/microliter, before expanding the HIV treatment scale-up to people with higher CD4-cell counts; and 2) increasing male medical circumcision coverage to at least 90% among HIV-uninfected adult men. We developed a mathematical model to determine the benefits and costs of increasing the coverage of both ART under different CD4-cell count thresholds and of circumcision in HIV-hyperendemic countries. The results show that scaling up ART and circumcision are both cost-beneficial. However, the benefit-to-cost ratio (BCR) for circumcision is significantly higher than for ART: 7.4 vs. 3.0 (at US$1,000 per life year and a 5% discount rate) and 56.4 vs. 16.3 (at US$5,000 per life year and a 3% discount rate). The additional cost of scaling up circumcision is approximately $US500 million while the additional cost of increasing ART coverage lies between $US17 and $US19 billion. We conclude that increasing the coverage of ART among HIV-infected adults with a CD4-cell count <350 cells/microliter and, in particular, scaling up male medical circumcision among HIV-negative men are both highly cost-beneficial interventions to reduce the health burdens resulting from the HIV epidemic in hyperendemic countries over the next 15 years.
    Keywords: HIV, male medical circumcision, antiretroviral therapy, cost-benefit analysis
    JEL: D61 I18
    Date: 2015–06
  21. By: Madeline Duhon (Motu Economic and Public Policy Research); Suzi Kerr (Motu Economic and Public Policy Research)
    Abstract: This paper provides an overview and early evaluation of the Lake Taupo nitrogen cap and trade programme, established as part of Waikato Regional Council’s 2011 Regional Plan Variation Five. The policy establishes a catchment-wide cap on nitrogen losses by allocating farmers individual nitrogen discharge allowances and allowing those farmers flexibility to trade allowances amongst themselves and to sell allowances to a public fund while remaining within the overall catchment cap. The Taupo trading scheme is the world’s first agricultural non-point-source water-quality cap and trade scheme. This paper explains the structure and evolution of the nitrogen trading market, and analyses its impact thus far. Research drawn from written material and descriptive quantitative data provides the basis for analysing the policy, while interviews with relevant stakeholders provide insight into the successful, surprising and contentious issues that arose throughout its development and implementation.
    Keywords: Water quality, water trading, water management, policy
    JEL: C69 Q53 Q57 Q58
    Date: 2015–06
  22. By: Yuichi Ishimura (Graduate School of Economics, Kobe University); Kenji Takeuchi (Graduate School of Economics, Kobe University)
    Abstract: This study is an empirical investigation of the location of industrial waste disposal sites in Japan. We found some evidence of spatial concentration of industrial waste disposal sites in area with other waste-related facilities. In addition, we found a higher number of industrial waste disposal sites per capita in municipalities that had not experienced conflict relating to the construction of disposal sites. Our results suggest that companies may decide to locate disposal sites in areas in which other waste related facilities already exist and/or where there is less citizen conflict over their construction. This would explain why there is a spatial concentration of unwanted facilities in some areas.
    Keywords: Disposal site; Industrial waste; Spatial econometrics; NIMBY
    JEL: D72 Q53 R39
    Date: 2015–06
  23. By: Philip Adams
    Abstract: The large Queensland LNG projects currently under construction will begin production over the next two years. Exploiting previously unused reserves of coal seam gas, the LNG produced will be sold at an international price which far exceeds the current price of natural gas in Eastern Australia. The new exports of LNG will therefore boost Australia's exports and terms of trade, leading to increased real GDP and welfare for the national economy. But this is only one part of the overall impacts of the new projects. Through competitive pressures, the price premium received for unconventional Queensland gas will lead to increased prices for gas throughout Eastern Australia. This will increase costs of production for energy-intensive industries. For those industries (and regions) which cannot pass on the cost increases, production will fall. In this paper, using the Victoria University Regional Model (VURM), we report on simulations designed to provide a balanced assessment of the costs and benefits of the new LNG projects. Key findings are: During construction, the projects boost real GDP and national welfare, and have a positive impact on most industries and most regional economies; During the mature, production phase, the national impacts are marginal. Real GDP is stimulated slightly, while national welfare is hardly affected. Some industries gain production, particularly electricity-related sectors that benefit from favourable price-induced substitution effects. Other industries lose production, due to the adverse cost impacts of increased gas and electricity prices. Because some industries gain, while other industries lose, so some regions gain real GSP and employment (Queensland), while other regions lose (notably Victoria and South Australia). The projects will lead to higher CO2-e emissions, due to the stimulus to coal-fired electricity.
    Keywords: CGE modelling, Gas production, LNG exports, Australian economy
    JEL: C68 D58 F43 O40
    Date: 2014–11
  24. By: Sharma, Vijay Paul
    Abstract: Diversion of agricultural land to non-agricultural uses is an issue of public debate in every agrarian economy experiencing rapid urbanization and industrial development. However, the issue has become more complex and politicised in India due to widely varied perceptions about the extent of diversion of agricultural land and the causes and socio-economic consequences of loss of agricultural land. It is generally perceived that large-scale conversion of agricultural land to non-agricultural uses has occurred and the issue of acquisition of large tracts of fertile land by corporates and displacement of farmers, agricultural workers, and other rural communities has become a major political rather than socio-economic issue. We try to determine whether the perceptions are consistent with empirical evidence on land use competition and identify main drivers that contribute to loss of agricultural land. The evidence shows that agricultural land conversion has become a serious issue in the country but the extent and intensity varies across different states. Between triennium ending (TE) 1991-92 and TE2011-12, net sown area in the country declined by about 1.8 million ha but it increased in some states, e.g. about 20 lakh ha in Rajasthan and 9.5 lakh ha in Gujarat. In contrast, Odisha lost over 17 lakh ha net sown area, Bihar (including Jharkhand) 12.4 lakh ha, Maharashtra (7.6 lakh ha), Tamil Nadu (7.1 lakh ha), Karnataka (3.1 lakh ha), Andhra Pradesh (2.7 lakh ha) and West Bengal (2.6 lakh ha). Contrary to general perception, Gujarat is the only state which has been able to add about 3 lakh ha to its total agricultural land during last two decades. Area under non-agricultural uses increased from 21.3 million ha in TE1991-92 to 26.3 million ha in TE2011-12 and almost all states witnessed an increase in area under non-agricultural uses. The empirical results revealed that urbanization, road infrastructure expansion and industrial development were the most important factors affecting agricultural land. Therefore, proper planning and management of land resources and appropriate policy framework are required to check conversion of agricultural land. Managing urbanization process and industrial as well as infrastructure expansion in a desired way that protects productive agricultural land and uses barren and unculturable wastelands (about 17.2 million ha) is very critical to country’s prosperity and sustainability. Hence, restriction on conversion of agricultural land for non-agricultural uses (mainly for industrial estates) and proper planning and implementation of land use policies are needed. The recent and current trends in agriculture and non-agriculture land use should not be a cause for either panic or complacency. However, strategic planning that avoids land use conflict by identifying areas, mainly barren and unculturable wastelands, for non-agricultural activities such as urban and industrial expansion and protecting productive farm lands is necessary to address land use conflicts and co-existence of agriculture and other non-agricultural activities. The problem of small and fragmented farms underlines the need for revisiting tenancy laws so as to increase the effective farm size.
  25. By: Gars, Johan (GEDB, Royal Swedish Academy of Sciences); Olovsson, Conny (Research Department, Central Bank of Sweden)
    Abstract: We set up an endogenous growth model in which the efficiency of both capital and fossil energy can be improved, whereas the efficiency of one alternative energy source is limited. With capital and energy as complements, there exist two steady states: one stagnant where energy is fully derived from the alternative energy source, and one with balanced growth where energy is fully sourced from fossil fuel. Heterogeneity in initial TFP levels can generate the Great Divergence. The demand for fossil fuel in technologically advanced countries drives up its price and makes fossil fuel too costly in less advanced countries that choose the alternative and stagnant energy input.
    Keywords: Growth; Malthusian stagnation; Industrial Revolution; Great Divergence; Technological progress
    JEL: O11 O14 O33 O41 O50
    Date: 2015–05–01

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