nep-env New Economics Papers
on Environmental Economics
Issue of 2015‒11‒21
43 papers chosen by
Francisco S. Ramos
Universidade Federal de Pernambuco

  1. Firm-level estimates of fuel substitution: an application to carbon pricing By Marie Hyland; Stefanie Haller
  2. Climate change impacts and mitigation in the developing world : an integrated assessment of the agriculture and forestry sectors By Havlík,Petr; Valin,Hugo Jean Pierre; Gusti,Mykola; Schmid,Erwin; Forsell,Nicklas; Herrero,Mario; Khabarov,Nikolay; Mosnier,Aline; Cantele,Matthew; Obersteiner,Michael
  3. From a rise in B to a fall in C? SVAR analysis of environmental impact of biofuels By Pavel Ciaian; d’Artis Kancs; Giuseppe Piroli; Miroslava Rajcaniova
  4. The climate beta By Dietz, Simon; Gollier, Christian; Kessler, Louise
  5. An empirical analysis on the relationship between emissions trading system and R&D investment By Emiko Inoue
  6. Climate element of migration decision in Ghana: Micro Evidence By Franklin Amuakwa-Mensah
  7. Using stated preference methods to assess environmental impacts of forest biomass power plants in Portugal By Anabela Botelho; Lina Sofia Lourenço-Gomes; Lígia Costa Pinto; Sara Sousa; Marieta Valente
  8. Environmental reliance, climate exposure, and vulnerability : a cross-section analysis of structural and stochastic poverty By Angelsen,Arild; Dokken,Therese
  9. Responses to weather and climate : a cross-section analysis of rural incomes By Noack,Frederik; Wunder,Sven; Angelsen,Arild; Börner,Jan
  10. Households and heat stress: estimating the distributional consequences of climate change By Park,Jisung; Hallegatte,Stephane; Bangalore,Mook; Sandhoefner,Evan
  11. Marine Trade-Offs: Comparing the Benefits of Off-Shore Wind Farms and Marine Protected Areas By Aljona Karlõševa; Sulev Nõmmann; Tea Nõmmann; Evelin Urbel-Piirsalu; Wiktor Budzinski; Mikolaj Czajkowski; Nick Hanley
  12. Macroeconomics, climate change and 'recomposition' of consumption By Ian Gough
  13. Climate change adaptation in agriculture: Ex ante analysis of promising and alternative crop technologies using DSSAT and IMPACT: By Robinson, Sherman; Mason d'Croz, Daniel; Islam, Shahnila; Cenacchi, Nicola; Creamer, Bernardo; Gueneau, Arthur; Hareau, Guy; Kleinwechter, Ulrich; Mottaleb, Khondoker; Nedumaran, Swamikannu; Robertson, Richard D.; Rosegrant, Mark W.; Sika, Gbegbelegbe; Sulser, Timothy B.; Wiebe, Keith D.
  14. Transport and Low-carbon. Fuel: A study of Public Preferences in Spain By María L. Loureiro; Xavier Labandeira; Michael Hanemann
  15. Revision of the EU Ecolabel Criteria for: Laundry detergents and industrial and institutional laundry detergents. Preliminary Report By Galyna Medyna; Alicia Boyano Larriba; Renata Barbara Kaps; Josephine Arendorf; Katherine Bojczuk; Edward Sims; Rimousky Menkveld; Laura Golsteijn; Anne Gaasbeek
  16. The impacts of climate change on poverty in 2030 and the potential from rapid, inclusive, and climate-informed development By Rozenberg,Julie; Hallegatte,Stephane
  17. Energy efficiency and emissions intensity standards By Harrison Fell; Daniel T. Kaffine; Daniel Steinberg
  18. Does Exporting Improve Firms' CO₂ Emissions Intensity and Energy Intensity? Evidence from Japanese manufacturing By JINJI Naoto; SAKAMOTO Hiroaki
  19. Annoyance and welfare costs from the presence of renewable energy power plants: an application of the contingent valuation method By Anabela Botelho; Lina Sofia Lourenço-Gomes; Lígia Costa Pinto; Sara Sousa; Marieta Valente
  20. Second-best analysis of European energy policy: Is one bird in the hand worth two in the bush? By Hübler, Michael; Schenker, Oliver; Fischer, Carolyn
  21. Pareto improvements induced by climate funding in a strategic adaptation-mitigation framework By Wolfgang Peters; Reimund Schwarze; Anna-Katharina Topp
  22. Sea Level Rise, Radical Uncertainties and Decision-Maker's Liability: The European Coastal Airports Case By Leonid Sorokin; Gérard Mondello
  23. PES as Compensation ? Redistribution of Payments for Forest Conservation in Mexican Common Forests By Gwenole Le Velly; Céline Dutilly Diane; Driss Ezzine de Blas; Chloë Fernandez
  24. Revision of the EU Ecolabel Criteria for: Hand dishwashing detergents. Preliminary Report By Galyna Medyna; Alicia Boyano Larriba; Renata Barbara Kaps; Josephine Arendorf; Katherine Bojczuk; Laura Golsteijn; Anne Gaasbeek; Dan Skinner
  25. Disaster risk, climate change, and poverty : assessing the global exposure of poor people to floods and droughts By Winsemius,Hessel C.; Jongman,Brenden; Veldkamp,Ted I.E.; Hallegatte,Stephane; Bangalore,Mook; Ward,Philip J.
  26. Climate shocks, cash crops and resilience: Evidence from colonial tropical Africa By Kostadis J. Papaioannou; Michiel de Haas
  27. Revision of the EU Ecolabel Criteria for: All-purpose cleaners, sanitary cleaners and window cleaners. Preliminary Report By Galyna Medyna; Alicia Boyano Larriba; Renata Barbara Kaps; Josephine Arendorf; Katherine Bojczuk; Edward Sims; Rimousky Menkveld; Laura Golsteijn; Anne Gaasbeek
  28. Smart hedging against carbon leakage By Christoph Böhringer; Knut Einar Rosendahl; Halvor Briseid Storrøsten
  29. Multi-Sectorial Convergence in Greenhouse Gas Emissions By Guilherme de Oliveira; Deise Bourscheidt
  30. Climate change impacts on rural poverty in low-elevation coastal zones By Barbier,Edward B.
  31. The exposure, vulnerability, and ability to respond of poor households to recurrent floods in Mumbai By Patankar,Archana Mahesh
  32. Multilateral versus sequential negotiations over climate change By PEREAU Jean-Christophe; CAPARROS Alejandro
  33. The impact of administrative transaction costs in the EU emissions trading system By Heindl, Peter
  34. PES Impact and Leakages over Several Cohorts: The Case of PSA-H in Yucatan, Mexico By Sergio CORTINA-VILLAR; Alexandre SAUQUET; Gwenole LE VELLY
  35. A Bio-economic Analysis of Community Wildlife Conservation in Zimbabwe By Herbert Ntuli and Edwin Muchapondwa
  36. Long-Term Impacts of High Temperatures on Economic Productivity By Paul E. Carrillo; Ram Fishman; Jason Russ
  37. The Cultural Transmission of Environmental Preferences: Evidence from International Migration By Anastasia Litina; Simone Moriconi; Skerdilajda Zanaj
  38. Social protection and disaster risk management in the Philippines : the case of typhoon Yolanda (Haiyan) By Bowen,Thomas Vaughan
  39. ITQs Common Fisheries Policy Reform and Stakeholders Perceptions By Manuel P. COELHO; José B. FILIPE; Manuel A. FEREIRA
  40. The Economic Feedbacks of Loss of Biodiversity and Ecosystems Services By Anil Markandya
  41. The value of air quality in Chinese cities: Evidence from labor and property market outcomes By Xuan Huang; Bruno Lanz
  42. Social protection in the face of climate change : targeting principles and financing mechanisms By Carter,Michael R.; Janzen,Sarah Ann
  43. Pro-Environmental Households and Energy Efficiency in Spain By Ana Ramos; Xavier Labandeira; Andreas Lšschel

  1. By: Marie Hyland; Stefanie Haller
    Abstract: We estimate partial- and total-fuel substitution elasticities between electricity, gas and oil, using firm-level data. We find that, based on the partial elasticity measure, electricity is the least-responsive fuel to changes in its own price and in the price of other fuels. The total elasticity measure, which adjusts the partial elasticity for changes in aggregate energy demand induced by individual fuel price changes, reveals that the demand for electricity is much more price responsive than the partial elasticity suggests. Our results illustrate the importance of accounting for the feedback effect between interfactor and interfuel substitution elasticities when considering the effectiveness of environmental taxation. We use the estimated elasticities to simulate the impact of a e15/tCO2 carbon tax on average energy-related CO2 emissions. The carbon tax results in a small reduction in CO2 emissions from oil and gas use, but this reduction is partially offset by an increase in emissions due to increased electricity consumption by some firms.
    Keywords: Fuel substitution; Firm-level data; Environmental taxation
    JEL: D24 Q38 Q41 Q48 Q58
    Date: 2015–10
  2. By: Havlík,Petr; Valin,Hugo Jean Pierre; Gusti,Mykola; Schmid,Erwin; Forsell,Nicklas; Herrero,Mario; Khabarov,Nikolay; Mosnier,Aline; Cantele,Matthew; Obersteiner,Michael
    Abstract: This paper conducts an integrated assessment of climate change impacts and climate mitigation on agricultural commodity markets and food availability in low- and middle-income countries. The analysis uses the partial equilibrium model GLOBIOM to generate scenarios to 2080. The findings show that climate change effects on the agricultural sector will increase progressively over the century. By 2030, the impact of climate change on food consumption is moderate but already twice as large in a world with high inequalities than in a more equal world. In the long run, impacts could be much stronger, with global average calorie losses of 6 percent by 2050 and 14 percent by 2080. A mitigation policy to stabilize climate below 2°C uniformly applied to all regions as a carbon tax would also result in a 6 percent reduction in food availability by 2050 and 12 percent reduction by 2080 compared to the reference scenario. To avoid more severe impacts of climate change mitigation on development than climate change itself, revenue from carbon pricing policies will need to be redistributed appropriately. Overall, the projected effects of climate change and mitigation on agricultural markets raise important issues for food security in the long run, but remain more limited in the medium term horizon of 2030. Thus, there are opportunities for low- and middle-income countries to pursue immediate development needs and thus prepare for later periods when adaptation needs and mitigation efforts will become the greatest.
    Keywords: Regional Economic Development,Climate Change Mitigation and Green House Gases,Science of Climate Change,Climate Change Economics,Energy and Environment
    Date: 2015–11–05
  3. By: Pavel Ciaian (European Commission – JRC - IPTS); d’Artis Kancs (European Commission – JRC - IPTS); Giuseppe Piroli (European Commission – Directorate General for Employment, Social Affairs and Inclusion); Miroslava Rajcaniova (FEM, Slovak Agricultural University in Nitra)
    Abstract: This is the first paper that econometrically estimates the impact of rising Bioenergy production on global CO2 emissions. We apply a structural vector autoregression (SVAR) approach to time series from 1961 to 2009 with annual observation for the world biofuel production and global CO2 emissions. We find that in the medium- to long-run biofuels reduce global CO2 emissions: the CO2 emission elasticities with respect to biofuels range between -0.57 and -0.80. In the short-run, however, biofuels may increase CO2 emissions temporarily. Our findings complement those of life-cycle assessment and simulation models. However, by employing a more holistic approach and obtaining more robust estimates of environmental impact of biofuels, our results are particularly valuable for policy makers.
    Keywords: time-series econometrics, biofuels, CO2 emissions, environment, agriculture, indirect land use changes
    JEL: C14 C22 C51 D58 Q11 Q13 Q42
    Date: 2015–11
  4. By: Dietz, Simon; Gollier, Christian; Kessler, Louise
    Abstract: Mitigation reduces the expected future damages from climate change,flbut how does it affect the aggregate risk borne by future generations?flThis raises the question of the ‘climate beta’, i.e., the elasticity of climatefldamages with respect to a change in aggregate consumption. Inflthis paper we show that the climate beta is positive if the main sourceflof uncertainty is exogenous, emissions-neutral technological progress,flimplying that mitigation has no hedging value. But these results areflreversed if the main source of uncertainty is related to the carbonclimate-flresponse and the damage intensity of warming. We then showflthat in the DICE integrated assessment model the climate beta is positivefland close to unity. In estimating the social cost of carbon, thisflwould justify using a relatively high rate to discount expected climatefldamages. However, the stream of undiscounted expected climate damagesflis also increasing in the climate beta. We show that this dominatesflthe discounting effect, so that the social cost of carbon is in fact largerflthan when discounting expected damages at the risk-free rate.
    Keywords: beta, climate change, discounting, integrated assessment,flmitigation, risk, social cost of carbon
    JEL: Q54
    Date: 2015–11
  5. By: Emiko Inoue
    Abstract: Innovation is now expected to play an important role to overcome difficult issues of climate change more than ever. To examine how to induce innovation, the relationship between environmental policy and innovation has been focused on. Still few researches, however, have examined the impact of the EU emission trading scheme on innovation based on econometric analysis. This study scrutinises how corporate responses towards the EU ETS influence R&D investments of EU major corporations. Using firm-level panel data, which is constructed based on the data of corporate responses to the Carbon Disclosure Project, EU Industrial R&D Investment Scoreboard, and corporationsf CSR reports, I estimate two dynamic panel models using system GMM estimator. Endogeneity issue is addressed in these models. The results show that corporations which have a policy or a strategy to comply with the EU ETS or to react proactively before being regulated by the EU ETS are more likely to encourage R&D investment. The process of reacting towards the EU ETS may provide an opportunity for corporations to recognise the importance of R&D investment for their future strategy.
    Keywords: Climate change; EU ETS; R&D investment
    Date: 2015–11
  6. By: Franklin Amuakwa-Mensah (Department of Economics, Swedish University of Agricultural Sciences)
    Abstract: The debate about how environmental or climate factors affect migration decisions has generated a lot of interest in recent times, however empirical studies about the subject are limited and fragmented. This paper investigates the effect of climate factors on migration decisions by comparing the 2005/06 and 2012/13 rounds of Ghana Living Standards Survey (GLSS5 and GLSS6), using Heckman two-stage method to account for selectivity bias. The climate condition in various ecological zones of Ghana is used as a proxy to investigate the effect of climate elements on migration decision. Results show that socio-economic factors such as anticipated welfare gains, household size, education, the sector of employment and others, together with climatic element do significantly affect an individual’s migration decision. Findings further suggest a positive effect of climate element on migration decisions. The coastal savannah and forest ecological zones have a greater probability of accommodating more in-migrants relative to the northern savannah ecological zone. In addition, marginal effects reveal that the probability to migrate to coastal savannah zone relative to northern zones is higher than the probability to migrate to forest zones relative to northern zone. Moreover, anticipated welfare gains reinforce the effect of climate elements and also entrenches the divergence between the probability of migrating to coastal and forest zones relative to the northern zones. With the current climate change of high temperature and low rainfall, migration may be considered as one of the several adaptation strategies in response to changes in the environment.
    Keywords: Climate; environment; migration; Heckman two-stage; Ghana.
    JEL: Q54 O15 R23 Q57
    Date: 2015–11
  7. By: Anabela Botelho (Universidade de Aveiro, GOVCOPP); Lina Sofia Lourenço-Gomes (University of Trás-os-Montes and Alto Douro); Lígia Costa Pinto (Universidade do Minho, NIMA); Sara Sousa (Instituto Politéctnico de Coimbra, ISCAC); Marieta Valente (Universidade do Minho, NIMA)
    Abstract: As a renewable energy source, the use of forest biomass for electricity generation is advantageous in comparison with fossil fuels, however the activity of forest biomass power plants causes adverse impacts, affecting particularly neighbouring communities. The main objective of this study is to estimate the effects of the activity of forest biomass power plants on the welfare of two groups of stakeholders, namely local residents and the general population and we apply two stated preference methods: contingent valuation and discrete choice experiments, respectively. The former method was applied to estimate the minimum compensation residents of neighbouring communities of two forest biomass power plants in Portugal would be willing to accept. The latter method was applied among the general population to estimate their willingness to pay to avoid specific environmental impacts. The results show that the presence of the selected facilities affects individuals’ well-being. On the other hand, in the discrete choice experiments conducted among the general population all impacts considered were significant determinants of respondents’ welfare levels. The results of this study stress the importance of performing an equity analysis of the welfare effects on different groups of stakeholders from the installation of forest biomass power plants, as their effects on welfare are location and impact specific. Policy makers should take into account the views of all stakeholders either directly or indirectly involved when deciding crucial issues regarding the sitting of new forest biomass power plants, in order to achieve an efficient and equitable outcome.
    Keywords: Forest Biomass, Stated Preference Methods, Contingent Valuation, Discrete Choice Experiments, Environmental Impacts, Public Attitudes
    JEL: C90
    Date: 2015–11
  8. By: Angelsen,Arild; Dokken,Therese
    Abstract: This paper analyzes environmental reliance, poverty, and climate vulnerability among more than 7,300 households in forest adjacent communities in 24 developing countries. The data are from the detailed, quarterly income recording done by the Poverty Environment Network project. Observed income is combined with predicted income (based on households? assets and other characteristics) to create four categories of households: income and asset poor (structurally poor), income rich and asset poor (stochastically non-poor), income poor and asset rich (stochastically poor), and income and asset rich (structurally non-poor). The income and asset poor generate 29 percent of their income from environmental resources, more than the other three categories. The income poor are more exposed to extreme and variable climate conditions. They tend to live in dryer (and hotter) villages in the dry forest zones, in wetter villages in the wet zones, and experience larger rainfall fluctuations. Among the self-reported income-generating responses to income shocks, extracting more environmental resources ranks second to seeking wage labor. Given high reliance on forest and other environmental resources, a concerning finding is that, in the Africa subsample (dominated by dry forests), the rate of forest loss is more than four times higher for the income&asset poor compared with the income&asset rich. Special attention should be given to the poorest households in dry areas, predominantly in Africa. They are (already) exposed to more extreme climate conditions, they suffer the highest forest loss, and the forest benefits are at risk in global warming scenarios.
    Keywords: Safety Nets and Transfers,Climate Change Mitigation and Green House Gases,Services&Transfers to Poor,Rural Poverty Reduction,Climate Change Economics
    Date: 2015–11–05
  9. By: Noack,Frederik; Wunder,Sven; Angelsen,Arild; Börner,Jan
    Abstract: How much do poor rural households rely on environmental extraction from natural ecosystems? And how does climate variability impact their livelihoods? This paper sheds light on these two questions with household income data from the Poverty and Environment Network pantropical data set, combined with climate data for the past three decades. The study finds that extraction of wild resources (from natural forests, bushlands, fallows, etc.) provides on average as much income (about 27 percent) as crops across the smallholder sample. The cross-section data on past reactions to household self-perceived economic shocks and observed production reactions to climate anomalies can, respectively, provide hints about livelihood vulnerability to current climate variability, which is likely to worsen with climate change. Forest extraction did not figure among the most favored response strategies to households? self-perceived economic shocks, but households undertake subtle substitutions in sector production in response to weather anomalies that accentuate suboptimal climatic conditions for cropping. By relying more on forest extraction and wages, households compensate quite successfully for declining crop incomes. This paints a cautiously optimistic picture about fairly flexible rural livelihood reactions to current climate variability, and featuring forests as potentially important in household coping strategies.
    Keywords: Climate Change Mitigation and Green House Gases,Rural Poverty Reduction,Climate Change and Environment,Climate Change Economics,Environmental Economics&Policies
    Date: 2015–11–05
  10. By: Park,Jisung; Hallegatte,Stephane; Bangalore,Mook; Sandhoefner,Evan
    Abstract: Recent economic research documents a range of adverse welfare consequences from extreme heat stress, including health, labor productivity, and direct consumption disutility impacts. Without rapid adaptation, climate change will increase the burden of heat stress experienced by much of the world?s population in the coming decades. What will the distributional consequences of this added heat stress be, and how might this affect optimal climate policy? Using detailed survey data of household wealth in 690,745 households across 52 countries, this paper finds evidence suggesting that the welfare impacts of added heat stress caused by climate change may be regressive. Specifically, the analysis finds that poorer households tend to be located in hotter locations across and within countries, and poorer individuals are more likely to work in occupations with greater exposure to the elements not only across but also within countries. These findings?combined with the fact that current social cost of carbon estimates do not include climate damages arising from the productivity impacts of heat stress?suggest that optimal climate policy, especially when allowing for declining marginal utility of consumption, involves more stringent abatement than currently suggested, and that redistributive adaptation policies may be required to reduce the mechanical inequities in welfare impacts arising from climate change.
    Keywords: Economic Theory&Research,Global Environment,Climate Change Mitigation and Green House Gases,Science of Climate Change,Climate Change Economics
    Date: 2015–11–05
  11. By: Aljona Karlõševa (Stockholm Environmental Institute, Tallinn, Estonia); Sulev Nõmmann (Stockholm Environmental Institute, Tallinn, Estonia); Tea Nõmmann (Stockholm Environmental Institute, Tallinn, Estonia); Evelin Urbel-Piirsalu (Stockholm Environmental Institute, Tallinn, Estonia); Wiktor Budzinski (University of Warsaw, Department of Economics); Mikolaj Czajkowski (University of Warsaw, Department of Economics); Nick Hanley (Department of Geography and Sustainable Development, University of St. Andrews)
    Abstract: The drive to increase renewable electricity production in many parts of Europe has led to an increasing concentration of new wind energy sites at sea. This results in a range of environmental impacts which should be taken into account in a benefit-cost analysis of such proposals. In this paper, we use choice modelling to investigate the relative gains and losses from siting new windfarms off the coast of Estonia, relative to the option of creating a new marine protected area. We find that, while respondents are generally opposed to converting marine shoals to conventional wind farms and prefer the establishment of marine protected areas instead, benefits from constructing ‘environmentally-friendly’ wind farms – an alternative program which is also considered by the government – are not statistically different with respect to consumers’ welfare to those associated with creating a new marine protected area. Methodologically, the paper makes a contribution by showing the ability of the latent class mixed logit model to represent both within-and between-class preference heterogeneity, and thus its power to provide a more sophisticated representation of preference heterogeneity than stand-alone latent class or mixed logit approaches. The paper is also presents the first use of the latent class mixed logit model in willingness-to-pay space for environmental goods.
    Keywords: Discrete Choice Experiment, Off-Shore Wind Energy, Marine Protected Areas, Willingness to Pay Space, Latent Class Mixed Logit, Renewable Energy
    JEL: Q51 O13 Q56 Q58 Q42 Q48 Q25 Q28
    Date: 2015–11
  12. By: Ian Gough
    Abstract: Macroeconomic policy should be evaluated, he says, and devised according to sustainability criteria alongside economic and social criteria. Economic goals whether growth of GDP productivity or competitiveness, should not trump equity/justice or sustainability. But nor should environmental goals trump social goals. The urgent challenge addressed in this PRIME e-publication is to develop a macroeconomic framework that supports ‘eco-social’ policies to pursue both goals simultaneously. Just and sustainable macroeconomic planning should take into account two policy dimensions: the emissions intensity of different items of consumption, and the necessitousness of these items. Ways of measuring both of these are proposed. When personal consumption in the UK is analysed in this way, an awkward policy dilemma immediately appears: almost all necessities are high carbon, while most ‘luxuries’ emit lower than average GHGs. Transport is also high carbon and comprises both necessary spending given current infrastructure and luxury spending. Thus a radical macroeconomic framework needs to endorse and devise new ‘eco-social’ policies to serve both justice and sustainability goals, alongside income redistribution and public social consumption. Three approaches are suggested: taxing high-carbon luxury consumption, variable pricing of high-carbon necessities, and rationing carbon.
    JEL: N0
    Date: 2015–10
  13. By: Robinson, Sherman; Mason d'Croz, Daniel; Islam, Shahnila; Cenacchi, Nicola; Creamer, Bernardo; Gueneau, Arthur; Hareau, Guy; Kleinwechter, Ulrich; Mottaleb, Khondoker; Nedumaran, Swamikannu; Robertson, Richard D.; Rosegrant, Mark W.; Sika, Gbegbelegbe; Sulser, Timothy B.; Wiebe, Keith D.
    Abstract: Achieving and maintaining global food security is challenged by changes in population, income, and climate, among other drivers. Assessing these challenges and possible solutions over the coming decades requires a rigorous multidisciplinary approach. To answer this challenge, the International Food Policy Research Institute (IFPRI) has developed a system of linked simulation models of global agriculture to do long-run scenario analysis of the effects of climate change and various adaptation strategies. This system includes the core International Model for Policy Analysis of Agricultural Commodities and Trade (IMPACT), which is linked to water models (global hydrology, water basin management, and water stress on crops) and crop simulation models.
    Keywords: agricultural research, climate change, yields, productivity, adaptation, food security, water, interdisciplinary research, IMPACT model, DSSAT model, Climate-smart agriculture,
    Date: 2015
  14. By: María L. Loureiro (Department of Foundations of Economic Analysis, University of Santiago de Compostela); Xavier Labandeira (Rede (Universidade de Vigo) and Economics for Energy); Michael Hanemann (Arizona State University and University of California at Berkeley)
    Abstract: Transport is essential for the control of future greenhouse gas (GHG) emissions and thus a target for active policy intervention in the future. Yet, social preferences for policies are likely to play an important role. In this paper we first review the existing literature on preferences regarding low- GHG car fuels, but also covering policy instruments and strategies in this area. We then present the results of a survey of Spanish households aimed at measuring preferences for climate change policies. We find a positive WTP (in the form of higher car fuel prices) for a policy to reduce GHG emissions through biofuels. There is, however, significant heterogeneity in public preferences due to personal motivations (accounted for via factor analysis of responses to attitudinal questions) and to socio-demographicvariables.
    Keywords: biofuels, WTP, contingent valuation
    JEL: Q54 Q58 R48
  15. By: Galyna Medyna (European Commission – JRC - IPTS); Alicia Boyano Larriba (European Commission – JRC - IPTS); Renata Barbara Kaps (European Commission – JRC - IPTS); Josephine Arendorf (Oakdene Hollins); Katherine Bojczuk (Oakdene Hollins); Edward Sims (Oakdene Hollins); Rimousky Menkveld (Oakdene Hollins); Laura Golsteijn (PRé Consultants); Anne Gaasbeek (PRé Consultants)
    Abstract: The EU Ecolabel criteria for laundry detergents and industrial and institutional laundry detergents are under revision. This revision process will take into account the current market conditions and the EU Ecolabel criteria will aim at addressing the most important environmental impacts of the laundry detergents (consumer and industrial and institutional detergents) in a life cycle perspective. The identification of the main hotspots is carried out in this study by means of an initial extensive literature review and subsequent LCA studies. LCA studies shown that the energy used for heating the washing water during the use stage, has an impact in all the environmental categories under study but especially on fossil fuel depletion and global warming potential. The extraction and processing of raw materials that cause impacts on the categories such as mineral depletion, land use and energy use as well as the emissions to the environment (discharge of wastewater) has also impacts of importance depending on the scenario under consideration. The study reveals that there are several improvement opportunities such as detergent compaction which can bring savings in resources or reduction in the wash temperature. Changes in the detergent formulation can also reduce the impacts in different categories.
    Keywords: environment(91); policy(250); sustainability(210)
    Date: 2015–11
  16. By: Rozenberg,Julie; Hallegatte,Stephane
    Abstract: The impacts of climate change on poverty depend on the magnitude of climate change, but also on demographic and socioeconomic trends. An analysis of hundreds of baseline scenarios for future economic development in the absence of climate change in 92 countries shows that the drivers of poverty eradication differ across countries. Two representative scenarios are selected from these hundreds. One scenario is optimistic regarding poverty and is labeled ?prosperity;? the other scenario is pessimistic and labeled ?poverty.? Results from sector analyses of climate change impacts?in agriculture, health, and natural disasters?are introduced in the two scenarios. By 2030, climate change is found to have a significant impact on poverty, especially through higher food prices and reduction of agricultural production in Africa and South Asia, and through health in all regions. But the magnitude of these impacts depends on development choices. In the prosperity scenario with rapid, inclusive, and climate-informed development, climate change increases poverty by between 3 million and 16 million in 2030. The increase in poverty reaches between 35 million and 122 million if development is delayed and less inclusive (the poverty scenario).
    Keywords: Regional Economic Development,Science of Climate Change,Rural Poverty Reduction,Climate Change Economics
    Date: 2015–11–09
  17. By: Harrison Fell (Division of Economics and Business, Colorado School of Mines); Daniel T. Kaffine (Department of Economics, University of Colorado); Daniel Steinberg (National Renewable Energy Lab)
    Abstract: In order to comply with the Environmental Protection Agency's (EPA) recently released regulations governing greenhouse gas emissions from power plants, states are given the option to implement rate-based emissions intensity standards for the power sector. One well-known consequence of rate-based emissions standards is that in addition to encouraging substitution towards less emissions-intensive sources, they also subsidize output, and thus are considered by economists to be inferior to a first-best solution. However, the exiting literature has not considered energy efficiency decisions within the framework of intensity standards. This omission is particularly problematic in the context of the power sector, where energy efficiency has been considered an important channel of cost-minimizing emissions reductions. To encourage end-use efficiency measures under an intensity standard EPA allows states to credit electricity savings as a means of complying with the rule by treating them as a form of zero-emissions output. In this paper we investigate the role of energy efficiency choices in rate-based emissions intensity standards. We show that when demand for energy services is perfectly inelastic, crediting efficiency measures can recover the first-best allocation. This approach extends the output subsidy in a traditional intensity standard to energy efficiency, thereby eliminating the distortion that favors electricity generation over energy efficiency. However, when demand for energy services exhibits some elasticity, crediting energy efficiency can no longer recover first-best. While crediting energy efficiency removes the relative distortion between energy generation and energy efficiency, it distorts the equilibrium level of both energy generation and energy efficiency via an energy services subsidy. Simulations calibrated to the electricity sector in Texas examine the above issues numerically, as well as explore the implications of alternative energy efficiency crediting schemes.
    Date: 2015–11
  18. By: JINJI Naoto; SAKAMOTO Hiroaki
    Abstract: Using Japanese firm-level data, we investigate the firm-level relationship between export status and environmental performance in terms of carbon dioxide (CO₂) emissions intensity and energy intensity. As in previous studies, we first find that exporting firms have significantly lower CO₂ emissions/energy intensity. We then investigate the effects of exporting on CO₂ emissions/energy intensity by employing the propensity score matching (PSM) method, and find that the effects significantly vary across industries. Whereas exporting significantly improves environmental performance in most industries, exporting actually increases CO₂ emissions/energy intensity in the iron & steel industry. This finding suggests that the effect of exporting varies across industries.
    Date: 2015–11
  19. By: Anabela Botelho (Universidade de Aveiro, GOVCOPP); Lina Sofia Lourenço-Gomes (University of Trás-os-Montes and Alto Douro); Lígia Costa Pinto (Universidade do Minho, NIMA); Sara Sousa (Instituto Politéctnico de Coimbra, ISCAC); Marieta Valente (Universidade do Minho, NIMA)
    Abstract: Sustainability is frequently defined by its three pillars: economically viable, socially equitable, and environmentally bearable. Consequently the evaluation of the sustainability of any decision, public or private, requires information on these three dimensions. This paper focuses on social sustainability. In the context of renewable energy sources, the examination of social sustainability requires the analysis of not only the efficiency but also the equity of its welfare impacts. The present paper proposes and applies a methodology to generate the information necessary to do a proper welfare analysis of the social sustainability of renewable energy production facilities. This information is key both for an equity and an efficiency analysis. The analysis focuses on the case of investments in renewable energy electricity production facilities, where the impacts on local residents’ welfare are often significantly different than the welfare effects on the general population. We apply the contingent valuation method to selected facilities across the different renewable energy power plants located in Portugal and conclude that local residents acknowledge differently the damage sustained by the type, location and operation of the plants. The results from these case studies attest to the need of acknowledging and quantifying the negative impacts on local communities when assessing the economic viability, social equity and environmental impact of renewable energy projects.
    Keywords: Sustainability, Renewable Energy Sources, Contingent Valuation, Public Attitudes
    JEL: Q4
    Date: 2015–11
  20. By: Hübler, Michael; Schenker, Oliver; Fischer, Carolyn
    Abstract: This paper studies policy instruments that correct insufficient learning-by-doing (LbD) and research and development (R&D) of renewable electricity technologies and insufficient investments in energy efficiency (EE) in the presence of carbon pricing. The theoretical model analysis shows how to re-adjust the first-best in second-best situations, in which one of the policy instruments is restricted. Calibrated to the European power sector, the first-best choice of all instruments reduces the climate policy cost by one third. Feed-in tariffs turn out to be good substitutes for LbD, but not for R&D or EE subsidies.
    Keywords: second-best,climate policy,energy policy,feed-in tariff,power sector,EU
    JEL: C61 O33 Q48 Q54 Q55
    Date: 2015
  21. By: Wolfgang Peters (Faculty of Business Administration and Economics, European University Viadrina, Frankfurt (Oder)); Reimund Schwarze (Europa University Viadrina and Helmholtz Centre for Environmental Research (UFZ)); Anna-Katharina Topp (Faculty of Business Administration and Economics, European University Viadrina, Frankfurt (Oder))
    Abstract: We address the international regime of climate finance, which is emerging in the post-Kyoto architecture, and investigate which type of earmarked funding may lead to Pareto improvements for donor and recipient countries. As funding within the post-Kyoto framework is voluntary, sustained finance in the long term can only be guaranteed if all participating countries benefit. In order to rule out for the Bergstrom paradox, which states that recipient countries may end up in a worse-off situation as a consequence of conditional transfers, we presume a framework in which donor countries commit themselves not to reduce their own mitigation efforts. Regarding three types of earmarked climate funding, which compensate either mitigation, adaptation or damage costs, we find that only funds that are directed at mitigation activities boost the global level of mitigation and may induce Pareto improvements. Transferring our results into the political context of the Green Climate Fund, we recommend to prioritize finance of 'energy generation and access', which aims at enhancing mitigation through low-emission power generation and access.
    Keywords: adaptation, climate change, funding, mitigation, Nash bargaining
    JEL: Q54 H41 H87 C72
    Date: 2015–11
  22. By: Leonid Sorokin (Peoples' Friendship University of Russia); Gérard Mondello (Université Nice Sophia Antipolis; GREDEG-CNRS)
    Abstract: Until now, most of the growing climate legal litigations mainly concern environmental associations or victims against energy of energy-users firms or States. However, in a near future, because of exacerbating sudden floods linked to climate change, future litigations could (will) concern infrastructure governance versus private companies. Indeed, sues would (will) concern the financial losses these last ones would (will) endure because the infrastructure managers did not made convenient protection choices in due time. This paper particularly investigates the case of coastal airports at the European level. It insists on the importance of climate scientists divergent opinions about the sea level rise and its consequences for decision-takers concerning their potential legal liability for negligence.
    Keywords: Climate Change, Sea level rise, flood, airports, transportation infrastructures, legal liability, uncertainty
    JEL: K32 Q54 R53
    Date: 2015–11
  23. By: Gwenole Le Velly (CERDI - CERDI - CNRS [CNRS]); Céline Dutilly Diane (CIRAD - CIRAD - CIRAD); Driss Ezzine de Blas (CIRAD - CIRAD - CIRAD); Chloë Fernandez (DIME - DIME - World Bank)
    Abstract: This article empirically explores the distribution of a Payments for Environmental Services (PES) scheme within Mexican forest communities. The PSA-H is a Mexican federal PES that has been remunerating communities for forest conservation since 2003. During the last decade, Mexico’s National Forestry Commission [CONAFOR] has developed a complex targeting system in order to enroll forests owned by communities with certain socio-economic and ecological characteristics. In the present study we analyze the socio-economic characteristics and land use changes of recipients of the PSA-H to understand how the targeting objectives have been expressed in the field. We conducted a combined survey of 47 ejidos and 163 households in the south of the state of Yucatan – the Cono Sur region. We first investigate, at the ejido-level, what determines the unequal distribution of payments. Second, we analyze the amount of payment received depending on the characteristics of households. Our analysis shows that the way the PSA-H is being distributed by ejidatarios bypasses the initial compensation objective. As a matter of fact, the distribution of the payments reflects past land use trajectories.
    Keywords: PES , Mexico , Communities , Forest conservation , Economic compensation , Distribution of payments
    Date: 2015–11–10
  24. By: Galyna Medyna (European Commission – JRC - IPTS); Alicia Boyano Larriba (European Commission – JRC - IPTS); Renata Barbara Kaps (European Commission – JRC - IPTS); Josephine Arendorf (Oakdene Hollins); Katherine Bojczuk (Oakdene Hollins); Laura Golsteijn (PRé Consultants); Anne Gaasbeek (PRé Consultants); Dan Skinner (PRé Consultants)
    Abstract: The EU Ecolabel criteria for hand dishwashing detergents are under revision. This revision process will take into account the current market conditions and the EU Ecolabel criteria will aim at addressing the most important environmental impacts of the hand dishwashing detergents in a life cycle perspective. The identification of the main hotspots is carried out in this study by means of an initial extensive literature review and subsequent LCA studies. LCA studies showed that the largest contribution to the environmental impact profile of hand dishwashing detergents is - by far - the use phase, particularly the energy needed to heat the water. For some impact categories, the sourcing of raw materials and the end of life are also important. Based on the normalisation assessment, by far the most important impact categories for hand dishwashing detergents in Europe are natural land transformation and fossil depletion. The study reveals that there are several improvement opportunities such reduction in the wash temperature or used of concentrated detergents. Changes in the detergent formulation can also reduce the impacts in different categories.
    Keywords: environment(91); policy(250); water(95); toxicology(260)
    Date: 2015–11
  25. By: Winsemius,Hessel C.; Jongman,Brenden; Veldkamp,Ted I.E.; Hallegatte,Stephane; Bangalore,Mook; Ward,Philip J.
    Abstract: People living in poverty are particularly vulnerable to shocks, including those caused by natural disasters such as floods and droughts. Previous studies in local contexts have shown that poor people are also often overrepresented in hazard-prone areas. However, systematic evidence across countries demonstrating this finding is lacking. This paper analyzes at the country level whether poor people are disproportionally exposed to floods and droughts, and how this exposure may change in a future climate. To this end, household survey data with spatial identifiers from 52 countries are combined with present-day and future flood and drought hazard maps. The paper defines and calculates a ?poverty exposure bias? and finds support that poor people are often overexposed to droughts and urban floods. For floods, no such signal is found for rural households, suggesting that different mechanisms?such as land scarcity?are more important drivers in urban areas. The poverty exposure bias does not change significantly under future climate scenarios, although the absolute number of people potentially exposed to floods or droughts can increase or decrease significantly, depending on the scenario and the region. The study finds some evidence of regional patterns: in particular, many countries in Africa exhibit a positive poverty exposure bias for floods and droughts. For these hot spots, implementing risk-sensitive land-use and development policies that protect poor people should be a priority.
    Keywords: Wetlands,Climate Change Mitigation and Green House Gases,Rural Poverty Reduction,Hazard Risk Management,Natural Disasters
    Date: 2015–11–05
  26. By: Kostadis J. Papaioannou; Michiel de Haas
    Abstract: A rapidly growing body of research examines how weather variability, anomalies and shocks influence economic and societal outcomes. This study investigates the effects of weather shocks on African smallholder farmers in British colonial Africa and intervenes in the debate on the mediating effect of cash crops on resilience to shocks. We employ a dual research strategy, involving both qualitative and econometric analysis. We analyse original primary evidence retrieved from annual administrative records and construct a panel dataset of 151 districts across West, South-central and East Africa in the Interwar Era (1920-1939). Our findings are twofold. First, we qualitatively expose a range of mechanisms leading from drought and excessive rainfall to harvest failure and social upheaval. We then test the link econometrically and find a robust U-shaped relation between rainfall deviation and social upheaval, proxied by annual imprisonment. Second, we review a long-standing and unsettled debate on the impact of cash crop cultivation on farmersÕ resilience to environmental shocks and find that cash crop districts experienced lower levels of social tension and distress in years of extreme rainfall variability.
    Keywords: Environmental and economic history, Africa, colonialism, tropical agriculture, social upheaval
    Date: 2015–11
  27. By: Galyna Medyna (European Commission – JRC - IPTS); Alicia Boyano Larriba (European Commission – JRC - IPTS); Renata Barbara Kaps (European Commission – JRC - IPTS); Josephine Arendorf (Oakdene Hollins); Katherine Bojczuk (Oakdene Hollins); Edward Sims (Oakdene Hollins); Rimousky Menkveld (Oakdene Hollins); Laura Golsteijn (PRé Consultants); Anne Gaasbeek (PRé Consultants)
    Abstract: The EU Ecolabel criteria for all purpose cleaners, sanitary cleaners and window cleaners are under revision. This revision process will take into account the current market conditions and the EU Ecolabel criteria will aim at addressing the most important environmental impacts of the all-purpose cleaners in a life cycle perspective. The identification of the main hotspots is carried out in this study by means of an initial extensive literature review and subsequent LCA studies. LCA studies showed that sourcing of the raw materials is the most relevant environmental aspect followed by heating up the water during cleaning if needed. Based on the normalisation assessment, by far the most significant impact category for all-purpose cleaners in Europe is natural land transformation. These findings are in agreement with the published literature and can be extrapolated to other all-purpose cleaners such as sanitary cleaners and window cleaners. The study reveals that there are several improvement opportunities such as cleaner concentration which can bring savings in resources or reduction in the wash temperature. Changes in the detergent formulation can also reduce the impacts in different categories.
    Keywords: environment(91); policy(250)
    Date: 2015–11
  28. By: Christoph Böhringer; Knut Einar Rosendahl; Halvor Briseid Storrøsten (Statistics Norway)
    Abstract: Unilateral climate policy induces carbon leakage through the relocation of emission-intensive and trade-exposed industries to regions with no or more lenient emission regulation. Both analytical and numerical studies suggest that emission pricing combined with border carbon adjustment is a second-best instrument, and more cost-effective than output-based rebating, in which case domestic output is indirectly subsidized. No country has so far imposed border carbon adjustment, while variants of output-based rebating have been implemented. In this paper we show that combining output-based rebating for emission-intensive and trade-exposed goods with a consumption tax on the same goods can be equivalent with border carbon adjustment. Moreover, we demonstrate that it is welfare improving for a region which has already implemented emission pricing along with outputbased rebating to also introduce such a consumption tax. We conclude that supplementing outputbased rebating with a consumption tax constitutes smart hedging against carbon leakage: Compared to output-based rebating stand-alone it constitutes a robust strategy for improving cost-effectiveness of unilateral climate policy; compared to border carbon adjustment it limits the risks of potentially detrimental trade disputes.
    Keywords: Carbon leakage; output-based rebating; border carbon adjustment; consumption tax
    JEL: D61 H2 Q54
    Date: 2015–10
  29. By: Guilherme de Oliveira; Deise Bourscheidt
    Abstract: Este artigo usa um painel dinâmico multi-setorial para testar a hipótese de convergência per capita na emissão de gases do efeito-estufa. Tal teste tornou-se possível com a recente publicação da World Input Output Database. A estratégia empírica aplica estimadores convencionais de efeitos aleatórios e fixos, e também um GMM de Arellano e Bond (1991), para os principais poluentes relacionados ao efeito estufa. Encontramos evidências robustas de convergência na emissão de CH4 em setores ligados à agricultura, indústria de alimentos, e serviços. Com relação à emissão de CO2, encontramos evidencias moderadas na agricultura, indústria de alimentos, indústria de bens-duráveis e serviços. Em todos os casos, o tempo para convergência foi menor do que quinze anos. Nas emissões relevantes pelo uso de energia, uma das maiores fontes causadoras do efeito estufa, encontramos evidências moderadas apenas na indústria extrativa. Todos os demais poluentes apresentaram evidência fraca ou ausência de evidências.
    Keywords: Greenhouse gas emissions; multi-sectorial convergence; panel data
    JEL: Q5 Q52 C33
    Date: 2015–10–23
  30. By: Barbier,Edward B.
    Abstract: This paper identifies the low-elevation coastal zone populations and developing regions most vulnerable to sea-level rise and other coastal hazards, such as storm surges, coastal erosion, and salt-water intrusion. The focus is on the rural poor in the low-elevation coastal zone, as their economic livelihoods are especially endangered directly by coastal hazards and indirectly through the impacts of climate change on key coastal and near-shore ecosystems. Using geo-spatially referenced malnutrition and infant mortality data for 2000 as a proxy for poverty, this study finds that just 15 developing countries contain over 90 percent of the world?s low-elevation coastal zone rural poor. Low-income countries as a group have the highest incidence of poverty, which declines somewhat for lower-middle-income countries, and then is much lower for upper-middle-income economies. South Asia, East Asia and the Pacific, and Sub-Saharan Africa account for most of the world?s low-elevation coastal zone rural poor, and have a high incidence of poverty among their rural low-elevation coastal zone populations. Although fostering growth, especially in coastal areas, may reduce rural poverty in the low-elevation coastal zone, additional policy actions will be required to protect vulnerable communities from disasters, to conserve and restore key coastal and near-shore ecosystems, and to promote key infrastructure investments and coastal community response capability.
    Keywords: Population Policies,Regional Economic Development,Wetlands,Coastal and Marine Environment,Rural Poverty Reduction
    Date: 2015–11–05
  31. By: Patankar,Archana Mahesh
    Abstract: This paper examines poor households in the city of Mumbai and their exposure, vulnerability, and ability to respond to recurrent floods. The paper discusses policy implications for future adaptive capacity, resilience, and poverty alleviation. The study focuses particularly on the poor households, which tend to have greater exposure and vulnerability to floods and limited ability to respond given the constraints on physical and financial resources. The study seeks to understand the implications of the fact that poor households are more likely than non-poor households to be located in flood-prone areas. The study used the land use maps for the selected flood-prone areas to determine the extent and spread of poor and non-poor households and other types of assets and activities in areas with chronic and localized flooding. Primary data were obtained through detailed household surveys to understand the vulnerability and impacts of the extreme floods of July 2005, recurrent floods and the ability of households to respond and cope. The study examined the option of relocation to flood-free areas and identified factors that influence families? decisions regarding relocation. The study finds that a significantly large proportion of poor households are located near areas with chronic and localized flooding. These households are either below the poverty line or have low incomes and reside in informal settlements or old and dilapidated structures. Future climate risks are likely to put greater burden on the poor and push them further into poverty unless well directed efforts are made to protect them.
    Keywords: Transport Economics Policy&Planning,Housing&Human Habitats,Small Area Estimation Poverty Mapping,Hazard Risk Management,Natural Disasters
    Date: 2015–11–05
  32. By: PEREAU Jean-Christophe; CAPARROS Alejandro
    Abstract: We discuss a model of gradual coalition formation with positive externalities in which a leading country endogenously decides whether to negotiate multilaterally or sequentially over climate change. We show that the leader may choose a sequential path, and that the choice is determined by the convexity of the TU-game and the free-rider payoffs of the followers. Except in a few clearly defined cases, the outcome of the negotiation process is always the grand coalition, although the process may need some time. This holds for the standard IEA game with heterogeneous players even if the grand coalition is not stable in a multilateral context. We also analyze the role of a facilitating agency. The agency has an incentive to speed up intra-stage negotiations and to extend the period between negotiation stages in a sequential process.
    Keywords: multilateral bargaining, endogenous coalition formation, international negotiations, mediator, international environmental agreements.
    JEL: Q54
    Date: 2015
  33. By: Heindl, Peter
    Abstract: This paper empirically investigates the impact of transaction costs for monitoring, reporting, and verification (MRV) of emissions on companies regulated by the EU Emissions Trading System (EU ETS) in Germany. Based on a unique panel dataset, we investigate if MRV costs are dependent on the amount of annual emissions of regulated companies and if there are differences in transaction costs between economic sectors. The results indicate that administrative costs are dependent on the amount of annual emissions for larger companies which has implications for the economic efficiency of the EU ETS. The most important finding, however, is that there are significant differences in MRV transaction costs dependent on the 'type' and 'size' of companies. This implies the existence of considerable economies of scale. Overall, the EU ETS could benefit from reforms by means of a push towards upstream regulation as this would likely increase administrative efficiency.
    Keywords: EU Emissions Trading System,Cap-and-Trade,Transaction Costs,Monitoring, Reporting, and Verification
    JEL: D22 D23 Q58
    Date: 2015
  34. By: Sergio CORTINA-VILLAR; Alexandre SAUQUET; Gwenole LE VELLY
    Abstract: We assess the impact of a payment for environmental services scheme implemented in Mexico, the PSA-H, over the 2005-2012 period. By studying several cohorts of program beneficiaries we are able to shed lights on the permanence of the program's impact. Based on the exploitation of 2.5 to 20m resolution SPOT images and ejido-surveys carried out in 76 ejidos located in the Cono Sur of Yucatan, we find that the program's effects are cancelled after communities choose to withdraw from the program, as well as evidence of leakages. We discuss these results from a policy perspective.
    Keywords: Payments for Environmental Services ; Environmental Policies ; Impact Evaluation ; Leakages
    JEL: Q28 Q23
    Date: 2015–11
  35. By: Herbert Ntuli and Edwin Muchapondwa
    Abstract: This paper uses a bioeconomic model to analyze wildlife conservation in two habitats adjacent to a national park by two types of communities in the context of Southern Africa. One community is made up of peasant farmers operating under a benefit-sharing scheme (CAMPFIRE) while the other is made up of commercial farmers practising game farming in a conservancy (the Save Valley Conservancy). Both communities exploit wildlife by selling hunting licenses to foreign hunters but with different levels of success. The park agency plays a central role by authorizing the harvest quota for each community. We formulate a bioeconomic model for the three agents, optimize the market problem for each agent and compare the outcomes with the social planner’s solution. Our results show that the level of anti-poaching enforcement by the park agency is suboptimal, while anti-poaching effort exerted by the conservancy community achieves social optimality. CAMPFIRE communities exert more poaching effort than what the social planner would recommend. Our model shows that an improvement in community institutions might have a significant impact on growth of the wildlife stock through their role in constraining behaviour. Thus, institutional reforms in benefit-sharing schemes such as CAMPFIRE could result in the local community behaving like game farming communities such as the Save Valley Conservancy.
    Keywords: Bio-economics, wildlife conservation, CAMPFIRE community, conservancy community
    JEL: Q20 Q57 Q28
    Date: 2015
  36. By: Paul E. Carrillo (Department of Economics/Institute for International Economic Policy, George Washington University); Ram Fishman (Department of Economics/Institute for International Economic Policy, George Washington University); Jason Russ
    Abstract: A substantial body of recent evidence on the socio-economic and health related impacts of high temperature anomalies, alongside the literature on the long-term impacts of in-utero stress on adult welfare (the fetal origins hypothesis), suggests that exposure to high temperature anomalies in-utero may have long-term impacts on adult human capital accumulation and economic productivity. To test this hypothesis, we match and regress administrative data on the 2010 earnings of all formal sector workers in Ecuador (over 1.5 million individuals born between 1950 and 1989) on temperature and rainfall anomalies in and around the time of each individual’s birth, at the location of birth. We find that higher temperatures while in-utero lead to significantly lower earnings, especially for women, for whom a 1°C increase in temperature leads to a 1.1%-1.7% decrease in earnings. The results are robust to the inclusion of rich sets of flexible controls and a range of falsification tests., and suggest climate change may already have caused adverse long-term ô°€pipelineô° economic impacts that have not been appreciated to date.
    Keywords: Climate Change, Economic Impacts, Fetal Origins
    JEL: J31 Q50
    Date: 2015–10
  37. By: Anastasia Litina; Simone Moriconi (Università Cattolica del Sacro Cuore; Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore); Skerdilajda Zanaj
    Abstract: This paper investigates both theoretically and empirically the hypothesis that individual environmental attitudes can be partly accounted for by a cultural component. To empirically identify this component, we exploit variation associated with international migration ows. We find that the environmental attitudes of migrants, while being resilient to environmental conditions, also embed a cultural component, which persists till the second generation migrants. Our results suggest that, in the presence of multiple environmental problems that require collective action, comprehending the driving forces behind the formation of an environmental culture is critical to design effective policies.
    Keywords: Cultural Transmission, Migration, Environmental Preferences.
    JEL: Q50 Q58 R23
    Date: 2015–11
  38. By: Bowen,Thomas Vaughan
    Abstract: This paper evaluates how the Philippines utilize social protection systems and programs to help households better manage disaster risk. Exposure and vulnerability to natural disasters and the effects of climate change are particularly high in the Philippines. At the same time, the Philippines has developed one of the most advanced social protection systems in the East Asia Pacific region. The Department of Social Welfare and Development is prominently integrated into the national disaster risk management framework of the Philippines, taking the lead coordinating role in disaster response activities. Consequently, social protection programs are on the frontlines of disaster response in the Philippines. This paper focuses specifically on the devastating impact of Typhoon Yolanda, which struck the country in November 2013, as a case study against which the Philippines? social protection response can be assessed.
    Keywords: Access to Finance,Disaster Management,Rural Poverty Reduction,Hazard Risk Management,Natural Disasters
    Date: 2015–11–09
  39. By: Manuel P. COELHO (CIRIUS,SOCIUS ISEG/Universidade de Lisboa – Portugal); José B. FILIPE (UNIDE, ISCTE/IUL – Portugal); Manuel A. FEREIRA (UNIDE, ISCTE/IUL – Portugal)
    Abstract: In the early 2010s the Pew Environment Group released a study that finds that E.U. fisheries have failed to reduce fleet capacity thus exerting fishing pressure on stocks at around two time sustainable levels. Overcapacity and overcapitalisation was identified as the principal failure of the Common Fisheries Policy (CFP). This conclusion may be important in the discussion about the on-going CFP reform and about the tools to get sustainable management. Rights Based Management schemes have already been experimented in specific fisheries and localizations. The practical indications and lessons given by these experiences are fundamental to explore the feasibility of such tools as instruments of the conservation and management policy. The purpose of this paper is to continue the debate. A special attention is given to the possibility of introducing a more focused approach on Rights Based Management,in the form of ITQs (Individual TransferableQuotas) in the CFP management regime.
    Keywords: Fisheries, Individual Transferable Quotas, Common Fisheries Policy,Reform, Stakeholders Perceptions; Fisheries, Individual Transferable Quotas, Common Fisheries Policy, Reform, Stakeholders Perceptions
    JEL: Q22 K11
    Date: 2015
  40. By: Anil Markandya
    Keywords: biodiversity, ecosystem services, biodiversité, écosystèmes
    JEL: O44 Q22 Q57
    Date: 2015–11–19
  41. By: Xuan Huang; Bruno Lanz
    Abstract: Using a dual-market sorting model of workers' location decisions, this paper studies the capitalization of air pollution in wages and property prices across Chinese cities. We exploit quasi-experimental variations in particulate matter (PM10) concentration induced by a policy subsidizing coal-based winter heating in northern China, specifying a regression discontinuity design based on cities' location relative to the policy boundary. We estimate that the elasticity of wages and house prices with respect to PM10 concentration is 0.41 and -0.71 respectively. Our results are robust to the use of an alternative source of exogenous variation in PM10 concentration (sandstorms), supporting the view that the local effect we measure provides policy-relevant information on the value of air quality improvements in China.
    Keywords: Hedonic model; Air pollution; Labor market; Housing prices; Local public goods.
    JEL: H41 J31 R31 Q53
    Date: 2015–11–16
  42. By: Carter,Michael R.; Janzen,Sarah Ann
    Abstract: Climate risk is an important driver of long-term poverty dynamics, especially in rural regions. This paper builds a dynamic, multi-generation household model of consumption, accumulation, and risk management to draw out the full consequences of exposure to climate risk. The model incorporates the long-term impacts of consumption shortfalls, induced by the optimal ?asset smoothing? coping behavior of the vulnerable, on the human capital and long-term wellbeing of families. The analysis shows that the long-term level and depth of poverty can be improved by incorporating elements of ?vulnerability-targeted social protection? into a conventional system of social protection. The paper also explores the degree to which vulnerability-targeted social protection can be implemented through a subsidized insurance mechanism. The analysis shows that insurance-based vulnerability-targeted social protection dominates (in economic growth and poverty reduction measures) both in-kind transfer mechanisms and vulnerability-targeted protection paid for using a public budget. The relative gains brought about by this scheme of insurance-augmented social protection increase?at least for a while?under climate change scenarios. However, if climate change becomes too severe, then even this novel form of social protection loses its ability to stabilize the extent and depth of poverty.
    Keywords: Debt Markets,Regional Economic Development,Rural Poverty Reduction,Climate Change Economics
    Date: 2015–11–05
  43. By: Ana Ramos (Rede (Universidade de Vigo)); Xavier Labandeira (Rede (Universidade de Vigo) and European University Institute); Andreas Lšschel (WestfŠlische Wilhelms-University MŸnster and Centre for European Economic Research (ZEW))
    Abstract: The residential building sector is a major driver of current and future energy consumption and associated emissions, which can be potentially mitigated through significant energy-efficiency (EE) improvements in both emerging and developed countries. Yet, there are several persistent barriers that hinder the attainment of EE improvements in this area. Using data from a 2008 national representative survey of Spanish households, this paper is interested in the determinants of EErelated decisions. In particular, a discrete-choice model empirically analyzes whether pro-environmental households are more likely to invest in EE and to adopt daily energy-saving habits. We show that households with eco-friendly behaviors are more likely to investment in well-differentiated EE measures as well as to steer daily habits towards energy savings. However, no effects are found for households with environmental attitudes based on stated willingness to pay to protect the environment. In addition to this, households belonging to higher income groups and education levels are more likely to invest in EE but not to adopt energy-saving habits; while households with older members are less likely to invest in EE and show fewer eco-friendly habits.
    Keywords: Energy efficiency, investment, behavior, habits
    JEL: Q41 Q48 Q58
    Date: 2015–10

This nep-env issue is ©2015 by Francisco S. Ramos. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.