nep-env New Economics Papers
on Environmental Economics
Issue of 2015‒12‒28
forty-six papers chosen by
Francisco S. Ramos
Universidade Federal de Pernambuco

  1. Environmental regulation and sustainable competitiveness: Evaluating the role of firm-level green investments in the context of the Porter hypothesis By Stöver, Jana; Weche, John P.
  2. The Role of Scenario Uncertainty in Estimating the Benefits of Carbon Mitigation By Alex L. Marten
  3. Double Limit Pricing By Gerard van der Meijden; Karolina Ryszka; Cees Withagen
  4. The role of renewable energy and agriculture in reducing CO2 emissions: evidence for North Africa countries By Ben Jebli, Mehdi; Ben Youssef, Slim
  5. Air transport and high-speed rail competition: environmental implications and mitigation strategies By Tiziana D'Alfonso; Changmin Jiang; Valentina Bracaglia
  6. When do Firms Go Green? Comparing Price Incentives with Command and Control Regulations in India By Ann Harrison; Benjamin Hyman; Leslie Martin; Shanthi Nataraj
  7. Climate Engineering Economics By Garth Heutel; Juan Moreno-Cruz; Katharine Ricke
  8. Knowledge Diffusion, Endogenous Growth, and the Costs of Global Climate Policy By Lucas Bretschger; Filippo Lechthaler; Sebastian Rausch; Lin Zhang
  9. Evaluating Mitigation Effort: Tools and Institutions for Assessing Nationally Determined Contributions By Aldy, Joseph Edgar
  10. A Stated Preference Study of the Chesapeake Bay and Watershed Lakes By Chris Moore; Dennis Guignet; Kelly B. Maguire; Chris Dockins; Nathalie B. Simon
  11. Valuing the benefits of improved marine environmental quality under multiple stressors By Heidi Tuhkanen; Evelin Urbel-Piirsalu; Tea Nõmmann; Mikołaj Czajkowski; Nick Hanley
  12. The Effect of Environmental Regulation on Employment: An Examination of the 1990 Clean Air Act Amendments and its Impact on the Electric Power Sector By Ann Ferris; Ronald J. Shadbegian; Ann Wolverton
  13. A multi-model assessment of regional climate disparities caused by solar geoengineering By Ricke, Katharine L; Cole, Jason N S; Curry, Charles L; Irvine, Peter J; Ji, Duoying; Kravitz, Ben; MacMartin, Douglas G; Robock, Alan; Rasch, Philip J; Keith, David; Egill Kristjánsson, Jón; Moore, John C; Muri, Helene; Singh, Balwinder; Tilmes, Simone; Watanabe, Shingo; Yang, Shuting; Yoon, Jin-Ho
  14. How Did Air Quality Standards Affect Employment and Generation at U.S. Power Plants? The Importance of Stringency, Geography, and Timing By Glenn Sheriff; Ann E. Ferris; Ronald J. Shadbegian
  15. The Property Value Impacts of Groundwater Contamination: Agricultural Runoff and Private Wells By Dennis Guignet; Rachel Northcutt; Patrick J. Walsh
  16. Explaining Variation in the Value of Chesapeake Bay Water Quality Using Internal Meta-analysis By Heather Klemick; Charles Griffiths; Dennis Guignet; Patrick Walsh
  17. Impacts of Being Downwind of a Coal-Fired Power Plant on Infant Health at Birth: Evidence from the Precedent-Setting Portland Rule By Muzhe Yang; Shin-Yi Chou
  18. Global warming and the collapse of the French Guiana shrimp fishery By Bassirou Diop; Nicolas Sanz; Yves Jamont Junior Duplan; Elhadji Mama Guene; Fabian Blanchard; Luc Doyen; Jean-Christophe Pereau
  19. Climate Change and Long-Run Discount Rates: Evidence from Real Estate By Stefano Giglio; Matteo Maggiori; Johannes Stroebel; Andreas Weber
  20. Climate Change and Space Heating Energy Demand: A Review of the Literature By Matthew Ranson; Lauren Morris; Alex Kats-Rubin
  21. Air Pollution and Criminal Activity: Evidence from Chicago Microdata By Evan Herrnstadt; Erich Muehlegger
  22. The Impact of Foresight in a Transboundary Pollution Game By Hassan BENCHEKROUN; Guiomar MARTÍN-HERRÁN
  23. What Factors drive Inequalities in Carbon Tax Incidence? Decomposing Socioeconomic Inequalities in Carbon Tax Incidence in Ireland By Farrell, Niall
  24. Do Natural Disasters Hurt Tax Resource Mobilization? By Eric Nazindigouba Kere; Somlanare Romuald Kinda; Rasmané Ouedraogo
  25. Green jobs, innovation and environmentally oriented strategies in European SMEs By Grazia Cecere; Massimiliano Mazzanti
  26. Adaptation, Sea Level Rise, and Property Prices in the Chesapeake Bay Watershed By Patrick J. Walsh; Charles Griffiths; Dennis Guignet; Heather Klemick
  27. L'EMPREINTE ÉCOLOGIQUE DU PARC NATUREL DE LA HAUTE VALLÉE DE CHEVREUSE : DU CONCEPT À LA CONSTRUCTION DE L'OUTIL By Jean-Marc Douguet; Martin O 'Connor; Jean-Pierre Doussoulin; Philippe Lanceleur; Karine Philippot
  28. Bildung und die Sustainable Development Goals: Zur Einschätzung des Bildungsziels in den SDGs By Langthaler, Margarita
  29. Export of Recyclable Materials: Evidence from Japan By Toshihiro Okubo; Yuta Watabe; Kaori Furuyama
  30. Firm-Level Estimates of Fuel Substitution: An Application to Carbon Pricing By Hyland, Marie; Haller, Stefanie
  31. Using a Contingent Valuation Approach for Improved Household Solid Waste Management in Algeria By Brahim, DJEMACI
  32. Optimal Taxation Rule Reversal in the Presence of Gentle Polluters and Greedy Cleaners By Damien Sans
  33. Experiments in Climate Governance. Lessons from a Systematic Review of Case Studies in Transition Research By Paula Kivimaa; Mikael Hildén; Dave Huitema; Andrew Jordan; Jens Newig
  34. The Implicit Price of Aquatic Grasses By Dennis Guignet; Charles Griffiths; Heather Klemick; Patrick J. Walsh
  35. Comptabilisation du capital naturel dans la productivite du secteur de l?extraction miniere et de l?extraction de petrole et de gaz By Wang, Weimin; Adams, Patrick
  36. The impact of the European Emission Trading Scheme on multiple measures of economic performance By Giovanni Marin; Claudia Pellegrin; Marianna Marino
  37. How do External Costs affect Pay-as-bid Renewable Energy Connection Auctions? By Farrell, Niall; Devine, Mel
  38. Heavy-Duty Trucks and the Energy Efficiency Paradox By Heather Klemick; Elizabeth Kopits; Keith Sargent; Ann Wolverton
  39. Le nouvel ordre écologique de Luc Ferry – « écosophie » ou éthique de la responsabilité ? By Yvon Pesqueux
  40. Estimation du poids d'un attribut environnemental : influence et effet des mesures d'évaluation By Eline Jongmans; Alain Jolibert; Julie Irwin
  41. El Niño and its impact on the New Zealand economy By Dean Ford; Amy Wood
  42. Compromiso de Reducción de Emisiones de Gases de Efecto Invernadero: Consecuencias económicas By Andrés Camilo ÁLVAREZ-ESPINOSA; Daniel Alejandro ORDOÑEZ; Alejandro NIETO; William WILLS; German ROMERO; Silvia Liliana CALDERÓN
  43. La valeur économique pour l’amélioration de la qualité de l’eau: le cas de la rivière Magog et du lac Magog (Québec, Canada) By Marius Yapo; Jie He; Bruno Gagnon; Luc Savard; Roland Leduc
  44. Impactos distributivos de un impuesto verde en Colombia By Germán ROMERO; Andrés Camilo ÁLVAREZ; Silvia CALDERON; Daniel ORDOÑEZ
  45. Policy convergence: A conceptual framework based on lessons from renewable energy policies in the EU By Strunz, Sebastian; Gawel, Erik; Lehmann, Paul; Söderholm, Patrik
  46. A network-based analysis of the European Emission Market By Andreas Karpf; Antoine Mandel; Stefano Battiston

  1. By: Stöver, Jana; Weche, John P.
    Abstract: We investigate the impact of environmental regulation on firm performance and Investment behavior. Exploiting the case of a German water withdrawal regulation that is managed on the state level, we analyze firms' reactions to an increase in the water tax using a regression-adjusted difference-in-differences approach. We analyze the individual firm's response to a change in environmental regulation, distinguishing between add-on and integrated environmental investments. This allows us to include intra-firm innovations into our analysis, which are likely to be of importance for increasing resource-efficiency. Our results show that the regulation in question shows no sign of affecting firms' overall competitiveness. The results imply that the predicted negative impact of the regulation on firms' economic Performance that was brought up before the introduction of the tax, does not seem to weigh heavily in this case. Nevertheless, when placed into a sustainable competitiveness context, the Regulation considered does not qualify as an appropriate policy tool for fostering green growth.
    Keywords: environmental regulation,DID,green growth,green investment,Porter hypoth- esis,sustainable competitiveness,water withdrawal regulation
    JEL: L60 O31 O32 Q58 Q55
    Date: 2015
  2. By: Alex L. Marten
    Abstract: The benefits of carbon mitigation are subject to numerous sources of uncertainty and accounting for this uncertainty in policy analysis is crucial. One often overlooked source uncertainty are the forecasts of future baseline conditions (e.g., population, economic output, emissions) from which carbon mitigation benefits are assessed. Through,in some cases highly non-linear relationships, these baseline conditions determine the forecast level and rate of climate change, exposed populations, vulnerability, and way in which inter-temporal tradeoffs are valued. We study the impact of explicitly considering this uncertainty on a widely used metric to assess the benefits of carbon dioxide mitigation, the social cost of carbon (SCC). To explore this question a detailed integrated assessment that couples economic and climate systems to assess the damages of climate change is driven by a library of consistent probabilistic socioeconomic-emission scenarios developed using a comprehensive global computable general equilibrium model. We find that scenario uncertainty has a significant effect on estimates of the SCC and that excluding this source of uncertainty could lead to an underestimate of the mitigation benefits. A detailed decomposition finds that this effect is driven primarily through the role that uncertainty regarding future consumption per capita growth has on the value of inter-temporal tradeoffs through the consumption discount rate.
    Keywords: social cost of carbon, integrated assessment, scenario uncertainty
    JEL: Q51 Q54
    Date: 2014–03
  3. By: Gerard van der Meijden (VU University Amsterdam, the Netherlands); Karolina Ryszka (VU University Amsterdam, the Netherlands); Cees Withagen (VU University Amsterdam, the Netherlands)
    Abstract: We study resource extraction by a non-renewable resource supplier who faces demand from two regions, one of which employs a tax on the imported resource and a subsidy on the available backstop technology, and one that has no environmental policy in place. The resource extraction path possibly contains two limit pricing phases, both in the presence and in the absence of speculators on the market. In the case with speculators, the resource price is continuous. Without speculators, the price jumps upward when demand from the region with climate policy drops to zero. A tightening of climate policies results in lower initial resource consumption; no Weak Green Paradox occurs. Yet, a decrease in the backstop production cost or an increase in the backstop subsidy shorten the overall extraction period, potentially resulting in higher total climate costs in the case without speculators. An analysis of the welfare effects reveals that the regulated region faces differential non-green and green incentives to tighten its climate policies in the two price regimes. We find that, even though climate damages might go down, unilateral policy tightening is possibly detrimental to the regulated region's non-green welfare due to a resource supply shift to the unregulated region.
    Keywords: limit pricing; non-renewable resource; monopoly; climate change; carbon tax; renewables subsidy
    JEL: Q31 Q37
    Date: 2015–12–18
  4. By: Ben Jebli, Mehdi; Ben Youssef, Slim
    Abstract: This paper uses panel cointegration techniques and Granger causality tests to investigate the dynamic causal links between per capita renewable energy consumption, agricultural value added (AVA), carbon dioxide (CO2) emissions, and real gross domestic product (GDP) for a panel of five North Africa countries spanning the period 1980-2011. In the short-run, the Granger causality tests show the existence of a bidirectional causality between CO2 emissions and agriculture, a unidirectional causality running from agriculture to GDP, a unidirectional causality running from GDP to renewable energy consumption, and a unidirectional causality running from renewable energy consumption to agriculture. In the long-run, there is bidirectional causality between agriculture and CO2 emissions, a unidirectional causality running from renewable energy to both agriculture and emissions, and a unidirectional causality running from output to both agriculture and emissions. Long-run parameter estimates show that an increase in GDP and in renewable energy consumption increase CO2 emissions, whereas an increase in agricultural value added reduces CO2 emissions. As policy recommendation, North African authorities should encourage renewable energy consumption, and especially clean renewable energy such as solar or wind, as this improves agricultural production and help to combat global warming.
    Keywords: Renewable energy; Agriculture; CO2 emissions; Panel cointegration; North Africa.
    JEL: C33 Q15 Q42 Q54
    Date: 2015–12–14
  5. By: Tiziana D'Alfonso (Department of Computer, Control and Management Engineering Antonio Ruberti (DIAG), University of Rome La Sapienza, Rome, Italy); Changmin Jiang (Asper School of Business, University of Manitoba, 181 Freedman Crescent, Winnipeg, Canada); Valentina Bracaglia (Department of Computer, Control and Management Engineering Antonio Ruberti (DIAG), University of Rome La Sapienza, Rome, Italy)
    Abstract: We develop a duopoly model to analyse the environmental impact of high-speed rail (HSR) introduction in a market for travel served by air transport. We take into account simultaneously the effects on the environment of induced demand, schedule frequency and HSR speed and we show that competition between the two modes may be detrimental to the environment depending on the magnitude of the pollution level of HSR relative to air transport. We conduct a simulation study based on the LondonÐParis market and we find that the introduction of HSR increases local air pollution (LAP) but decreases greenhouse gases (GHG) emissions. Moreover, we perform a sensitivity analysis of our results towards the level of HSR and air transport emissions. We find that modal competition is more likely to be detrimental to the environment when such ratio is relatively high. Furthermore, when mixed public/private-owned HSR takes into account the surplus of consumers and the surplus that the other (air) transport operator brings about, we find that modal competition is more likely to be detrimental to the environment than in the case of a fully private HSR. Finally, we provide an interpretive discussion of the results with respect to the different mitigation strategies available to the two transport modes and EU policy measures for the environment Ð which might jointly affect the ratio between HSR and air transport emissions.
    Keywords: High-speed rail ; Airlines ; Competition ; Environment ; Mitigation Policies ; London-Paris market
    Date: 2015
  6. By: Ann Harrison; Benjamin Hyman; Leslie Martin; Shanthi Nataraj
    Abstract: India has a multitude of environmental regulations but a history of poor enforcement. Between 1996 and 2004, India's Supreme Court required 17 cities to enact Action Plans to reduce air pollution through a variety of command-and-control (CAC) environmental regulations. We compare the impacts of these regulations with the impact of changes in coal prices on establishment-level pollution abatement, coal consumption, and productivity growth. We find that higher coal prices reduced coal use within establishments, with price elasticities similar to those found in the US. In addition, higher coal prices are associated with lower pollution emissions at the district level. CAC regulations did not affect within-establishment pollution control investment or coal use, but did impact the extensive margin, increasing the share of large establishments investing in pollution control and reducing the entry of new establishments. For reducing SO2 emissions, our results suggest that higher coal prices were more effective in improving environmental outcomes than command and control measures.
    JEL: O14 O33 O44 Q4 Q52
    Date: 2015–11
  7. By: Garth Heutel; Juan Moreno-Cruz; Katharine Ricke
    Abstract: This article reviews and evaluates the nascent literature on the economics of climate engineering. The literature distinguishes between two broad types of climate engineering: solar radiation management and carbon dioxide removal. We review the science and engineering characteristics of these technologies and analyze the implications of those characteristics on economic policy design. We discuss optimal policy and carbon price, inter-regional and inter-generational equity issues, strategic interaction in the design of international environmental agreements, and the sources of risk and uncertainty surrounding these technologies. Along with mitigation and adaptation, climate engineering technologies can be incorporated into future domestic and global climate policy design. More research on the topic is needed.
    JEL: Q54
    Date: 2015–11
  8. By: Lucas Bretschger (ETH Zurich, Switzerland); Filippo Lechthaler (ETH Zurich, Switzerland); Sebastian Rausch (ETH Zurich, Switzerland); Lin Zhang (ETH Zurich, Switzerland)
    Abstract: This paper examines the effects of knowledge diffusion on growth and costs of climate policy. We develop a general equilibrium model with endogenous growth which represents knowledge diffusion between sectors and regions. Knowledge diffusion depends on accessibility and absorptive capacity which we estimate econometrically using patent and citation data. Knowledge diffusion leads to a “greening” of economies boosting productivity of “clean” carbon-extensive sectors. Knowledge diffusion lowers the costs of global climate policy by about 90% for emerging countries (China) and 20% for developed regions (Europe and USA), depending on the substitutability between different knowledge types.
    Keywords: Technological Change: Choices and Consequences, Environment and Growth,Technological Innovation, Computable General Equilibrium Models
    JEL: O33 O44 Q55 C68
    Date: 2015–12
  9. By: Aldy, Joseph Edgar
    Abstract: The emerging pledge and review approach to international climate policy provides countries with substantial discretion in how they craft their intended emission mitigation contributions. The resulting heterogeneity in mitigation pledges places significant demands for a well-functioning transparency and review mechanism. In particular, the specific forms of intended contributions necessitate economic analysis in order to estimate the aggregate effects of these contributions as well as to permit "apples-to-apples" comparisons of mitigation efforts. This paper discusses the tools that can inform such analyses as well as the institutional needs of climate transparency. In light of the negotiating challenges with respect to transparency, the paper describes the potential for countries to implement Living Mitigation Plans that include regular updating of domestic mitigation programs with data and analyses on their outcomes. Such Living Mitigation Plans can serve as the foundation for independent, expert review of domestic mitigation programs. Moreover, they can include the inputs necessary to assess the mitigation value of domestic mitigation. Such assessments could inform the linkage of domestic mitigation policies, especially among disparately designed mitigation policies. This paper builds in part on the proceedings of a research workshop conducted May 7–8, 2015 at the Harvard Kennedy School, "Comparison and Linkage of Mitigation Efforts in a New Paris Regime." For more information on the workshop and links to most presentations, see here. The author and the Harvard Project on Climate Agreements acknowledge the support and collaboration of the International Emissions Trading Association and the World Bank Group's Networked Carbon Markets Initiative, with regard to the workshop, the paper, and a related side-event panel to be conducted at the Twenty-First Conference of the Parties of the United Nations Framework Convention on Climate Change in Paris in December 2015.
    Date: 2015
  10. By: Chris Moore; Dennis Guignet; Kelly B. Maguire; Chris Dockins; Nathalie B. Simon
    Abstract: The Chesapeake Bay is the largest estuary in the United States and the third largest in the world. The surrounding Watershed encompasses 64,000 square miles, and is home to about 18 million people. There have been numerous studies measuring the value of different components of the Chesapeake Bay but no study or set of studies provides a comprehensive estimate of the values associated with the improvements likely to result from recently implemented pollution limits. To fill this gap we developed a stated preference (SP) survey that uses a discrete choice experiment response format to examine households’ willingness to pay (WTP) for water quality improvements in the Chesapeake Bay. During extensive focus group testing, care was taken to identify the environmental attributes that are most important to both users and non-users and to quantitatively describe these attributes using understandable and tangible metrics. The survey was mailed to a stratified random sample of households across 17 states in the eastern U.S. and the District of Columbia. This paper reports the results of the empirical analysis, including marginal WTP estimates for each environmental attribute and total WTP for the expected outcome of the pollution reduction program. A comparison of WTP across households suggests that a substantial portion of the benefits can be attributed to nonusers. Results also show that benefits from improving water quality in freshwater lakes in the Watershed are an important ancillary benefit likely to result from reducing pollution in the Bay.
    Keywords: Chesapeake Bay, choice experiment, stated preference, TMDL, water quality
    JEL: Q51 Q53
    Date: 2015–11
  11. By: Heidi Tuhkanen (Stockholm Environmental Institute); Evelin Urbel-Piirsalu (Stockholm Environmental Institute); Tea Nõmmann (Stockholm Environmental Institute); Mikołaj Czajkowski (Faculty of Economic Sciences, University of Warsaw); Nick Hanley (University of St Andrews, Department of Geography and Sustainable Development)
    Abstract: Many marine and coastal ecosystems are under increasing pressure from multiple stressors. In the Baltic Sea, these stressors include oil and chemical spills from shipping, nutrient run-off from land and invasive species. All of these pressures have been rising over the recent past. Increasing pressures lead to reductions in environmental quality, which produce negative effects on human well-being. In this paper, the choice experiment method is used to estimate the benefits to people in Estonia resulting from reductions in pressure from multiple stressors in the Baltic.
    Keywords: multiple stressors, Good Environmental Status, marine and coastal water quality, choice experiments, oil and chemical spills, eutrophication, invasive species
    JEL: Q51 O13 Q56 Q57 Q58 Q34
    Date: 2015
  12. By: Ann Ferris; Ronald J. Shadbegian; Ann Wolverton
    Abstract: The effect of regulation on employment is of particular interest to policy-makers in times of high sustained unemployment. In this paper we use a panel data set of fossil fuel fired power plants to examine the impact of Phase I of the SO2 trading program created by Title IV of the 1990 Clean Air Act Amendments (CAAA) on employment in the electric utility sector and a two-stage estimation technique that pairs propensity score matching with a difference-in differences estimator. Overall, we find little evidence that power plants subject to Phase I of the SO2 trading program had significant decreases in employment during Phase I of the program relative to non-Phase I power plants. We also find that accounting for utility-level fixed effects is important when examining how electric utilities chose to comply. For instance, when using plant-level fixed effects we find significant negative employment effects for power plants that chose to comply by switching to low sulfur coal. However, utilities took advantage of the flexibility offered under the trading program by switching to low sulfur coal at a subset of the power plants they owned to generate excess allowances to meet compliance needs at other power plants. When we include utility-level fixed effects in this case, we find that the negative employment effect is no longer statistically significant, offering some evidence that utilities used the flexibility of the regulations to minimize the overall impact on employment. When we control for a more traditional NOX rate-based standard that partially overlaps with Phase I of the SO2 trading program, we find that employment effects associated with the SO2 program continue to be insignificant.
    Keywords: SO2 regulations, cap and trade, employment effects
    JEL: Q52 Q53
    Date: 2014–02
  13. By: Ricke, Katharine L; Cole, Jason N S; Curry, Charles L; Irvine, Peter J; Ji, Duoying; Kravitz, Ben; MacMartin, Douglas G; Robock, Alan; Rasch, Philip J; Keith, David; Egill Kristjánsson, Jón; Moore, John C; Muri, Helene; Singh, Balwinder; Tilmes, Simone; Watanabe, Shingo; Yang, Shuting; Yoon, Jin-Ho
    Abstract: Global-scale solar geoengineering is the deliberate modification of the climate system to offset some amount of anthropogenic climate change by reducing the amount of incident solar radiation at the surface. These changes to the planetary energy budget result in differential regional climate effects. For the first time, we quantitatively evaluate the potential for regional disparities in a multi-model context using results from a model experiment that offsets the forcing from a quadrupling of CO2 via reduction in solar irradiance. We evaluate temperature and precipitation changes in 22 geographic regions spanning most of Earthʼs continental area. Moderate amounts of solar reduction (up to 85% of the amount that returns global mean temperatures to preindustrial levels) result in regional temperature values that are closer to preindustrial levels than an un-geoengineered, high CO2 world for all regions and all models. However, in all but one model, there is at least one region for which no amount of solar reduction can restore precipitation toward its preindustrial value. For most metrics considering simultaneous changes in both variables, temperature and precipitation values in all regions are closer to the preindustrial climate for a moderate amount of solar reduction than for no solar reduction.
    Date: 2014
  14. By: Glenn Sheriff; Ann E. Ferris; Ronald J. Shadbegian
    Abstract: Policy makers are keenly interested in environmental regulation’s employment impacts. Empirical research has relied on restrictive assumptions regarding institutional structure and definition of the regulated sector that can lead to mis-characterization of which plants get regulated, when they get regulated, and how stringent their regulations are. We relax these assumptions to develop a nuanced understanding of how the Clean Air Act’s Ozone National Ambient Air Quality Standards affected the U.S. electric power sector in the 1990s. We find that abstracting from regulatory details can lead to underestimation of relative historical local impacts and overestimation of relative projected local impacts of possible future regulation.
    Keywords: environment, regulation, energy, labor
    JEL: Q52 Q53
    Date: 2015–05
  15. By: Dennis Guignet; Rachel Northcutt; Patrick J. Walsh
    Abstract: There are few studies examining the impacts of groundwater quality on residential property values. Using a unique dataset of groundwater well tests, we link residential transactions to home-specific contamination levels and undertake a hedonic analysis of homes in Lake County, Florida; where groundwater pollution concerns stem primarily from agricultural runoff. We find that testing and contamination yield a 2% to 6% depreciation, an effect that diminishes after the situation is resolved. Focusing specifically on nitrogen-based contamination, we find prices decline mainly at concentrations above the regulatory health standard, suggesting up to a 15% deprecation at levels twice the standard.
    Keywords: drinking water, groundwater, hedonic, nitrate, potable water, property value, water quality
    JEL: Q51 Q53
    Date: 2015–11
  16. By: Heather Klemick; Charles Griffiths; Dennis Guignet; Patrick Walsh
    Abstract: This study conducts a meta-analysis of the value of water quality in the Chesapeake Bay derived from separate hedonic property value estimates in 14 Maryland counties. The meta-analysis allows us to: 1) investigate heterogeneity of estimates of the value of water clarity across counties based on socioeconomic and ecological factors, 2) understand the implication of econometric specification choices made in the original hedonic equations for benefit estimates, and 3) transfer the benefits out-of-sample to Bayfront counties in Washington, DC, Delaware, Virginia, and four additional counties in Maryland. We also investigate the in-sample and out-of-sample predictive power of different transfer strategies and find that a simpler unit value transfer can outperform more complex function transfers. The results illustrate both the usefulness of meta-analysis and the challenges of benefit transfer even when estimates being transferred represent a common geographic area, environmental attribute, and policy instrument.
    Keywords: meta-analysis, benefit transfer, water quality, Chesapeake Bay, hedonic property value analysis
    JEL: Q51 Q53 Q57
    Date: 2015–11
  17. By: Muzhe Yang; Shin-Yi Chou
    Abstract: We conduct the first study on the impacts of prenatal exposure to a uniquely identified large polluter, a coal-fired power plant located near the border of two states, on the birth outcomes of the downwind state. For mothers who live as far as 20 to 40 miles away but downwind of the power plant, being exposed to power plant emissions, in particular sulfur dioxide, during the first month of pregnancy could increase the likelihood of having full-term babies but with low birth weight, an indicator of slow fetal growth, by as much as 42 percent. This adverse impact could be driven by reactive sulfur species-induced intrauterine oxidative stress, arising from maternal exposure to emissions of sulfur dioxide, whose travelling from the emission source to the downwind region has been confirmed in the Portland Rule. In light of EPA’s continual efforts in regulating power plant emissions, our study is aimed at broadening the scope of cross-border pollution analysis by taking into account adverse infant heath impacts from upwind polluters, which can burden the downwind states disproportionately.
    JEL: H23 I1
    Date: 2015–11
  18. By: Bassirou Diop (CEREGMIA - Centre de Recherche en Economie, Gestion, Modélisation et Informatique Appliquée - UAG - Université des Antilles et de la Guyane); Nicolas Sanz (CEREGMIA - Centre de Recherche en Economie, Gestion, Modélisation et Informatique Appliquée - UAG - Université des Antilles et de la Guyane); Yves Jamont Junior Duplan (CEREGMIA - Centre de Recherche en Economie, Gestion, Modélisation et Informatique Appliquée - UAG - Université des Antilles et de la Guyane); Elhadji Mama Guene (IPR - Institut de Physique de Rennes - UR1 - Université de Rennes 1 - CNRS - Centre National de la Recherche Scientifique); Fabian Blanchard (Ifremer, Unité Biodiversité Halieutique de Guyane - Unité Biodiversité Halieutique de Guyane); Luc Doyen (GREThA;Groupe de Recherche en Économie Théorique et Appliquée - CNRS - Centre National de la Recherche Scientifique); Jean-Christophe Pereau (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - Université Montesquieu - Bordeaux 4 - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This paper studies the biological and economic effects of global warming on the French Guiana shrimp …fishery. The sea surface tem- perature is explicitly introduced into four natural growth functions, among which the Cobb-Douglas function best adjusts the available data. Besides, a Cobb-Douglas harvest function is also estimated, in- dicating that shrimp production in French Guiana is highly sensitive to the shrimp stock, which implies that global warming may have strong economic implications. We …nally consider a centralized resource man- agement of the French Guiana shrimp …shery, that is undertaken in various trend scenarios concerning the sea surface temperature. Un- der the most plausible scenario, in which the sea surface temperature follows the trend of the last decades, pro…ts and biomass respectively decrease and collapse around the end of the 2020s.
    Keywords: Resource management,Climate change,Temperature
    Date: 2015–12–01
  19. By: Stefano Giglio; Matteo Maggiori; Johannes Stroebel; Andreas Weber
    Abstract: The optimal investment to mitigate climate change crucially depends on the discount rate used to evaluate the investment’s uncertain future benefits. The appropriate discount rate is a function of the horizon over which these benefits accrue and the riskiness of the investment. In this paper, we estimate the term structure of discount rates for an important risky asset class, real estate, up to the very long horizons relevant for investments in climate change abatement. We show that this term structure is steeply downward-sloping, reaching 2.6% at horizons beyond 100 years. We explore the implications of these new data within both a general asset pricing framework that decomposes risks and returns by horizon and a structural model calibrated to match a variety of asset classes. Our analysis demonstrates that applying average rates of return that are observed for traded assets to investments in climate change abatement is misleading. We also show that the discount rates for investments in climate change abatement that reduce aggregate risk, as in disaster-risk models, are bounded above by our estimated term structure for risky housing, and should be below 2.6% for long-run benefits. This upper bound rules out many discount rates suggested in the literature and used by policymakers. Our framework also distinguishes between the various mechanisms the environmental literature has proposed for generating downward-sloping discount rates.
    JEL: G11 G12 R30
    Date: 2015–11
  20. By: Matthew Ranson; Lauren Morris; Alex Kats-Rubin
    Abstract: This paper reviews recent evidence on the potential impacts of climate change on energy demand for space heating in residential and commercial buildings. We cover two main topics. First, we review empirical studies of the historical relationship between temperature and energy use for heating and cooling. These studies show consistent evidence of a U-shaped relationship between temperature and energy demand, in which energy use for heating is greatest at very low temperatures, and energy use for cooling is greatest at very high temperatures. The temperature at which energy use is minimized varies across geography and time periods, but in most studies is between 53°F and 72°F (12°C and 22°C). Second, we review studies that estimate how climate change will affect future energy use for space heating and cooling. Most studies predict that climate change will result in reductions in demand for heating and increases in demand for cooling. Although the sign of the net global effect depends on the time frame and climate change scenario, a very robust conclusion is that there is considerable variation across geographies, with the largest magnitude effects predicted for countries that currently have either very low or very high average temperatures. Overall, the results summarized in this paper will be useful for understanding the potential magnitude of the benefits of climate-related reductions in space heating, and for improving the damage functions used in integrated assessment models of climate change.
    Keywords: climate change, space heating, space cooling, energy use, integrated assessment models
    JEL: Q41 Q54
    Date: 2014–12
  21. By: Evan Herrnstadt; Erich Muehlegger
    Abstract: A large and growing literature documents the adverse impacts of pollution on health, productivity, educational attainment and socioeconomic outcomes. This paper provides the first quasi-experimental evidence that air pollution causally affects criminal activity. We exploit detailed location data on over two million serious crimes reported to the Chicago police department over a twelve-year period. We identify the causal effect of pollution on criminal activity by comparing crime on opposite sides of major interstates on days when the wind blows orthogonally the direction of the interstate and find that violent crime is 2.2 percent higher on the downwind side. Consistent with evidence from psychology on the relationship between pollution and aggression, the effect is unique to violent crimes – we find no effect of pollution on the commission of property crime.
    JEL: K42 Q53
    Date: 2015–12
    Abstract: We study the impact of foresight in a transboundary pollution game; i.e. the ability of a country to control its emissions taking into account the relationship between current emissions and future levels of pollution and thus on future damages. We show that when all countries are myopic, i.e., choose the 'laisser-faire' policy, their payoffs are smaller than when all countries are farsighted, i.e., non-myopic. However, in the case where one myopic country becomes farsighted we show that the welfare impact of foresight on that country is ambiguous. Foresight may be welfare reducing for the country that acquires it. This is due to the reaction of the other farsighted countries to that country's acquisition of foresight. The country that acquires foresight reduces its emissions while the other farsighted countries extend their emissions. The overall impact on total emissions is ambiguous. Moreover, our results suggest that incentive mechanisms, that involve a very small (possibly zero) present value of transfers, can play an important role in inducing a country to adopt a farsighted behavior and diminishing the number of myopic countries. These incentives would compensate the myopic country for the short-run losses incurred from the acquisition of foresight and can be reimbursed by that country from the gains from foresight that it enjoys in the long run.
    Keywords: myopia, differential games, transboundary pollution
    JEL: C73 D90 Q59
    Date: 2015
  23. By: Farrell, Niall
    Abstract: Carbon taxes increase the cost of necessary household energy expenditures. In many developed countries, carbon taxes are regressive as they comprise a greater proportion of a poorer household’s income. Certain socioeconomic groups are more negatively affected by these impacts than others. While inequality of incidence by income group has received great attention in the literature, a gap exists to quantify the inequality associated with socioeconomic characteristics. This information is policy-relevant as it may inform the most effective means to offset negative welfare impacts through changes to taxes and/or social transfers. This paper provides this contribution. First, the inequality of carbon tax incidence across the income spectrum is quantified using the concentration index methodology. A subsequent multivariate decomposition quantifies the contribution each socioeconomic factor makes towards this inequality of incidence. This is carried out for electricity, motor fuel and all other home fuels to elicit variation of socioeconomic incidence by source. While income contributes a great deal towards inequality of incidence for other home fuels, socioeconomic characteristics are the primary determinants of electricity and motor fuel-related carbon tax incidence. The relative importance of each characteristic in determining regressive impacts is quantified and this varies by carbon tax source.
    Date: 2015–11
  24. By: Eric Nazindigouba Kere (CERDI - Centre d'études et de recherches sur le developpement international - CNRS - Centre National de la Recherche Scientifique - Université d'Auvergne - Clermont-Ferrand I); Somlanare Romuald Kinda (Université Ouagadougou - Université Ouagadougou - Université Ouagadougou); Rasmané Ouedraogo (CERDI - Centre d'études et de recherches sur le developpement international - CNRS - Centre National de la Recherche Scientifique - Université d'Auvergne - Clermont-Ferrand I)
    Abstract: According to several reports, natural disasters and climate change will intensify and dampen development if appropriate measures are not implemented. Our paper contributes to this literature and analyzes the impact of natural disasters on domestic resource mobilization in developing countries. Using propensity score matching estimators over the period of 1980-2012 for 120 developing countries, our results conclude that government revenues decrease in the aftermath of natural disasters. Moreover natural disasters that occur in border countries have a negative impact on government revenues of neighbor countries. However, the adverse effects of natural disasters are dampened in countries with high level of resilience capacity and stronger governance.
    Keywords: Natural disasters , Tax revenue , Resilience capacity , Corruption.
    Date: 2015–12–14
  25. By: Grazia Cecere (Telecom Ecole de Management, Institut Mines-Telecom, Paris, France.); Massimiliano Mazzanti
    Abstract: Green jobs are a key aim of societal efforts to provide concrete contents to the long run effort to reconcile sustainability and development. The present article analyses the extent to which future growth of green jobs is influenced by microeconomic and sector/macro level factors. We carry out econometric analyses on European SME firms to assess the factors affecting the creation of green jobs in small and medium firms. We find that green product and service innovation is primarily relevant to support the creation of green jobs. This suggests that producing green products and services is an important factor affecting green jobs. The environmental management system is also positively related to job creation: the reorganization of a firm’s activities imposed by Environmental Management System implementation requires the organizational structure as a whole to be reshaped, eventually including skills and competences. Innovations aimed at enhancing resource efficiency also augment the expected creation of green jobs. Sector factors and turnover/demand effects appear less relevant than specific eco innovation elements of the firm with the exception of the waste sector which supports the creation of green jobs. The study lays the foundations for future research on the development of green skills, competences and jobs in firms as a reaction to market and policy levers.
    Keywords: green jobs, innovation, labour demand, sectors, product innovation, techno-organisational innovations
    Date: 2015–12
  26. By: Patrick J. Walsh; Charles Griffiths; Dennis Guignet; Heather Klemick
    Abstract: While the mean global sea level has climbed by an average of 3.2 mm/year since 1993—and is projected to increase another 0.18 – 0.82 meters by 2100—coastal populations have continued to expand. Coastal communities may be compelled to adapt to these competing forces, and at an increasing frequency in the near future. This paper explores the property price impact of several adaptation structures that can help bolster the shoreline and protect homes from sea level rise (SLR) in Anne Arundel County, MD. Our study uses a novel dataset on coastal features that is very spatially explicit, and contains the location of all adaptation structures. We also use maps of SLR zones to explore how property price impacts vary depending on vulnerability to sea level rise. Results indicate that sea level rise and adaption structures, such as bulkheads and rip-raps, can have a significant impact on waterfront home prices, with the impact varying across risks and type of adaption structure. A home located in the most threatened SLR zone that is unprotected by an adaptation structure sells for 19-23% less, on average. On the other hand, homes in threatened SLR zones with certain adaptation structures see a 21% increase in property price, approximately compensating for the threatened location. Since sea level in the Chesapeake Bay is projected to rise approximately two feet over the next century, the results here suggest that property markets are incorporating this information. Our results should be useful to policy makers, developers, insurers, and other parties involved in coastal management, who trade off the costs and benefits of development and adaptation.
    Keywords: sea level rise, hedonic regression, coastal resources, environmental economics, benefit-cost analysis, valuation
    JEL: H40 H70 Q25 Q26 Q51 Q54 Q56
    Date: 2015–02
  27. By: Jean-Marc Douguet (REEDS - Centre international de Recherches en Economie écologique, Eco-innovation et ingénierie du Développement Soutenable - UVSQ - Université de Versailles Saint-Quentin-en-Yvelines); Martin O 'Connor (REEDS - Centre international de Recherches en Economie écologique, Eco-innovation et ingénierie du Développement Soutenable - UVSQ - Université de Versailles Saint-Quentin-en-Yvelines); Jean-Pierre Doussoulin (REEDS - Centre international de Recherches en Economie écologique, Eco-innovation et ingénierie du Développement Soutenable - UVSQ - Université de Versailles Saint-Quentin-en-Yvelines); Philippe Lanceleur (REEDS - Centre international de Recherches en Economie écologique, Eco-innovation et ingénierie du Développement Soutenable - UVSQ - Université de Versailles Saint-Quentin-en-Yvelines); Karine Philippot (REEDS - Centre international de Recherches en Economie écologique, Eco-innovation et ingénierie du Développement Soutenable - UVSQ - Université de Versailles Saint-Quentin-en-Yvelines)
    Abstract: §I. CONTEXTE PNR — Le projet scientifique accompagne une démarche de gouvernance territoriale (la mise en opération de la nouvelle Charte PNR) qui se veut exemplaire en termes d’un développement territorial respectueux des normes de la soutenabilité. Ce module va situer le projet scientifique par rapport aux enjeux, ambitions et procédures affichés par les acteurs du Parc Naturel Régionale de la Haute Vallée de Chevreuse en Île‐de‐France. §II. ETAT EMPREINTES — Revue approfondie de la littérature récente (en anglais et français), empirique et conceptuelle, sur le concept de l’empreinte écologique, ses usages, ses points forts et ses limites. §III. METHODOLOGIE — Exposition détaillée des conventions de collecte de données et d’estimation des indicateurs agrégés des « pressions » environnementales sur le territoire du Parc. Cette exposition va s’appuyer directement des résultats des modules §I et §II et, devrait s’adresser plus particulièrement à des questions clés pour l’application envisagée au PNR Chevreuse, à savoir : les échelles territoriales d’une empreinte, le traitement des usages ‘directs’ et ‘indirects’ de l’environnement et des « flux » à travers la frontière du territoire ciblé, et la complémentarité entre ‘top‐down’ démarches moyennant coefficients Inputs/Outputs établis aux échelles supérieures et ‘bottom‐up’ démarches moyennant des données du PNR lui‐même. §IV. SCHEMA DONNEES — Mise en place [par adaptation du KerBabel™ Indicateur Kiosk, KIK] d’un système interactif en ligne de méta‐informations pour le catalogage des données et des indicateurs composites susceptibles d’être mobilisés dans l’estimation des indicateurs agrégés du type Empreinte Écologique pour le PNR. Ce système devrait, parmi d’autres rôles, permettre de situer des données sur les pressions environnementales par rapport à des causes du côté de l’économie [en 6 branches majeures], par rapport à l’état de l’environnement [en 7 branches], et sur le plan spatial [territoire du PNR, espace francilien, France, Europe, échelle planétaire]. §V. Travail par SECTEUR ECOLOGIQUE — Ce module assurera l’identification et catalogage d’une diversité représentative d’indicateurs (qui peuvent être physiques et monétaires) pour chaque « case » ou catégorie de pressions définie par l’interface entre branches majeures d’activité économique et composantes majeures de l’environnement. Ensuite, sur cette base, il va produire des premières estimations pour des indicateurs synthétiques par catégorie de pressions. §VI. Indicateurs Agrégés de performance et de durabilité — Ce module va définir et démontrer des procédures d’estimation empirique d’une « Empreinte Écologique » pour le territoire du PNR Chevreuse. Il va expliciter les conventions sous‐jacentes aux procédures d’estimation et, par le biais des tests de sensibilité, mettre en évidence (1) les options pour l’intégration des flux à travers la frontière du Parc et (2) les incertitudes associées à ce genre d’indicateur agrégé. §VII. BONS USAGES de l’Empreinte Écologique — Ce module va démontrer des rôles pour les calculs d’une Empreinte Écologique pour informer les débats et les stratégies pour la gouvernance du PNR, par exemple, dans des démarches de veille, d’évaluation et de communication autour des projets et politiques de développement territorial. Il va fournir des conseils pour des futurs producteurs et utilisateurs des estimations d’Empreinte Écologique sur (1) la préparation et l’interprétation des « profils KQA (Contrôle la la Qualité de la Connaissance » concernant les incertitudes et (2) les déterminants de la pertinence et des limites de l’Empreinte Écologique comme indicateur agrégé de la performance économique et environnementale d’un territoire. §VIII. Documentation et Dissémination — Activités permanentes et périodiques de documentation et de dissémination des méthodes et des résultats ; exploitation des technologies Internet pour permettre à une communauté large de scientifiques et d’éventuels utilisateurs de découvrir et contribuer aux délibérations sur les estimations et leurs usages.
    Keywords: biodiversité , comptabilité carbone, passif, bilan écologique, modèle discursif, délibération, SEEA, actif, capital naturel, patrimoine naturel,empreinte écologique, indicateurs
    Date: 2014–12–01
  28. By: Langthaler, Margarita
    Abstract: Im September 2015 wurden die Sustainable Development Goals (SDGs) von der UNO-Generalversammlung verabschiedet. Bildung ist eines von 17 Zielen. Seit Jahrzehnten versucht die internationale Gemeinschaft, das Menschenrecht auf Bildung für alle mithilfe internat. Bildungsinitiativen einzulösen. Es stellt sich die Frage, ob es gelingen wird, dieses Ziel bis zum Jahr 2030 zu erreichen und welche Strategien dazu notwendig sind. Das vorliegende Paper gibt einen Überblick über die internationale entwicklungspolitische Debatte rund um Bildung in den SDGs. Es geht zunächst auf die kontroverse Einschätzung der SDGs sowie deren Vorläufer, der MDGs ein. Danach werden die Lehren aus der internat. Bildungsinitiative Education for All gezogen und der veränderte globale Kontext angerissen. Der Hauptteil des Papiers widmet sich der Einschätzung des SDG 4 im Lichte internationaler Debatten und gibt einen Ausblick auf wichtige zukünftige Themen.
    Date: 2015
  29. By: Toshihiro Okubo (Faculty of Economics, Keio University); Yuta Watabe (Faculty of Economics, Keio University); Kaori Furuyama (Japan International Cooperation Agency (JICA))
    Abstract: In this paper, we study the waste haven hypothesis that waste materials are exported to developing countries. Using Japanese trade data on recyclable waste resources (plastic waste, waste paper, iron and steel scrap, and nonferrous metal scraps), we find evidence from our econometric analysis that Asian countries provide a waste haven for Japan. In particular, Japan exports waste materials to Asian countries with low per-capita incomes and large markets. We suggest that environmental regulation should be tightened to reduce traded waste in Asia.
    Keywords: waste haven, willingness-to-pay, recyclable waste resources, environmental regulations
    JEL: F18 L51 Q56
    Date: 2015–12–15
  30. By: Hyland, Marie; Haller, Stefanie
    Date: 2015–10
  31. By: Brahim, DJEMACI
    Abstract: This study examines the values of willingness to Pay (WTP) for improved household solid waste management in Algeria, Isser City. A payment card contingent valuation technique was used to elicit households' willingness to pay for an improvement in management of their solid waste. The data were analyzed using interval regression technique. The results show that the mean willingness to pay of households for improved solid waste management is 1,485 DZD. The amount of tax on garbage is fixed between 500 and 1000 DZD for households and the cost of the new management is estimated to 2844 dinars per ton. The total value of CAP from households covers only 37% of the costs of new program. The results further reveal that the significant factors determining households' willingness to pay for improved solid waste management (collection and disposal) are age, type of housing, distance, educational level, income and service quality.
    Keywords: Solid waste, willingness to pay, payment card, interval data
    JEL: Q51 Q53
    Date: 2015–12–15
  32. By: Damien Sans (Aix-Marseille University (Aix-Marseille School of Economics), CNRS, & EHESS)
    Abstract: The literature on the micro-economics of the eco-industry often assumed interiority of pollutant net emissions. In a perfectly competitive final good market vertically integrated with an upstream monopoly supply this assumption implies that an optimal tax is always greater than its associated marginal social damage. In this short note we will relax this assumption and challenge that result. The market structure generates a unique threshold on the scale of the marginal social damage, whereby for any value above the threshold an optimal tax is strictly lower and net emissions are zero.
    Keywords: Microeconomics, eco-industry, Imperfect Competition, Optimal Taxation
    JEL: D42 D62 H23 L11 Q58
    Date: 2015–12–14
  33. By: Paula Kivimaa (Science Policy Research Unit SPRU, University of Sussex, Jubilee Building, Falmer, Brighton BN1 9SL, UK.; Finnish Environment Institute, P.O. Box 140, 00260 Helsinki, Finland.); Mikael Hildén (Finnish Environment Institute, P.O. Box 140, 00260 Helsinki, Finland.); Dave Huitema (IVM Institute for Environmental Studies, VU University Amsterdam, De Boelelaan 1087 1081 HV Amsterdam, The Netherlands.; Department of Science, Netherlands Open University, Valkenburgerweg 177, 6419 AT Heerlen, The Netherlands.); Andrew Jordan (Tyndall Centre, University of East Anglia, Norwich, UK.); Jens Newig (Leuphana University Lüneburg, Germany.)
    Abstract: Experimentation has been proposed as one of the ways in which public policy can drive sus-tainability transitions, notably by creating or delimiting space for experimenting with innova-tive solutions to sustainability challenges. In this paper we report on a systematic review of articles published between 2009 and 2015 that have addressed experiments aiming either at understanding decarbonisation transitions or enhancing climate resilience. Using the case survey method, we find few empirical descriptions of real-world experiments in climate and energy contexts in the scholarly literature, being observed in only 25 articles containing 29 experiments. We discuss the objectives, outputs and outcomes of these experiments noting that explicit experimenting with climate policies could be identified only in 12 cases. Based on the results we suggest a definition of climate policy experiments and a typology of experi-ments for sustainability transitions that can be used to better understand the role of and learn more effectively from experiments in sustainability transitions.
    Keywords: policy innovation; experiment; experimentation; sustainability transitions; climate policy
    Date: 2015–12
  34. By: Dennis Guignet; Charles Griffiths; Heather Klemick; Patrick J. Walsh
    Abstract: Almost 30% of aquatic grasses worldwide are either lost or degraded (Barbier et al, 2011). The Chesapeake Bay is no exception, with levels of submerged aquatic vegetation (SAV) remaining below half of the historic levels. This decline is largely attributed to excessive nutrient and sediment loads degrading Bay water quality. SAV provide many important functions to natural ecosystems, many of which are directly beneficial to local residents. To understand the implicit value residents place on SAV and the localized ecosystem services it provides, we undertake a hedonic property value study using residential transaction data from 1996 to 2008 in eleven Maryland counties adjacent to the Chesapeake Bay. These data are matched to high resolution maps of Baywide SAV coverage. We pose a quasi-experimental comparison and examine how the price of homes near and on the waterfront vary with the presence of SAV. On average, waterfront and near-waterfront homes within 200 meters of the shore sell at a 5% to 6% premium when SAV are present. Applying these estimates to the 185,000 acre SAV attainment goal yields total property value gains on the order of $300 to 400 million.
    Keywords: aquatic grasses, Chesapeake Bay, ecological input, ecosystem services, hedonics, submerged aquatic vegetation, SAV, water quality
    JEL: Q51 Q53
    Date: 2014–12
  35. By: Wang, Weimin; Adams, Patrick
    Abstract: Le present document propose un cadre comptable de la croissance ou les ressources minerales et energetiques souterraines sont reconnues comme etant un facteur capital naturel dans le processus de production. Il s?agit de la premiere etude en ce genre au Canada. Le revenu attribuable aux ressources souterraines, ou rente des ressources, est estime comme plus-value apres comptabilisation de tous les couts d?extraction et du rendement normal du capital produit. La valeur d?une reserve de ressources est ensuite estimee comme valeur actuelle des futures rentes de ressources generees par une extraction efficace de la reserve. Enfin, avec l?extraction comme flux de services observes du capital naturel, on peut reevaluer la croissance de la productivite multifactorielle (PMF) et les autres sources de croissance economique en mettant a jour la repartition du revenu entre tous les facteurs, puis en estimant la contribution a la croissance decoulant des fluctuations de la valeur du facteur capital naturel. Le present cadre est ensuite applique au secteur canadien de l?extraction de petrole et de gaz.
    Keywords: Crude oil and natural gas, Economic accounts, Energy, Productivity accounts
    Date: 2015–12–14
  36. By: Giovanni Marin (IRCrES-CNR, Milano, Italy; SEEDS, Ferrara, Italy.); Claudia Pellegrin (CEMI-CDM-EPFL, Lausanne, Switzerland.); Marianna Marino (Department of Strategy and Innovation, ICN Business School, Nancy/Metz; France and Bureau d'Économie Théorique et Appliquée (BETA), Université de Lorraine, France)
    Abstract: The European emission trading scheme (EU ETS) has introduced a price for carbon and has thus led to an additional cost for companies that are regulated by the scheme. There is a growing body of empirical literature that investigates the effects of the EU ETS on firm economic performance. However, the results found to date are mixed. The objective of this paper is to provide empirical evidence on the effect of the EU ETS on economic performance at the firm level. Differently from the previous literature, we test the effect of the EU ETS on a larger set of indicators of economic performance: value added, turnover, employment, investment, labour productivity, total factor productivity and markup. Moreover, we evaluate the extent to which the impact of the EU ETS differs depending on some observable features of firms. Our results, based on a large panel of European firms, provide a comprehensive picture of the economic impact of the EU ETS in its first and second phases of implementation. The evidence suggests that the EU ETS had a positive impact on the scale of treated firms, whereas it had a negative impact on scale-free aspects of economic performance.
    Keywords: European Emission Trading Scheme, economic performance, difference-in-differences, emission intensity, allowance trading, environmental patents
    JEL: Q52 Q58
    Date: 2015–12
  37. By: Farrell, Niall; Devine, Mel
    Abstract: Renewable energy deployment costs comprise both internal generation costs and external location-related infrastructure, environmental and social costs. To minimise generation costs, competitive connection contract auctions are becoming increasingly common. Should external costs have considerable influence on site selection outside of the auction process, optimal bidding strategies may be affected by the resulting re-ranking of winning bids. This paper elicits the impact this may have on optimal bidding behaviour. Specifically, we address the impact internalisation of external costs may have on bidding strategy. With deterministic generation costs, optimal bidding strategies include a markup. The optimal markup is lower if external costs are internalised into the investment decision. If investors have the ability to appropriate rents, due to market dominance or asymmetric information, non-internalised external costs lower markup. Generation cost uncertainty may result in below-cost bidding. This is less likely when externalities are not internalised. For markets where bids are competitively priced, this paper provides evidence to suggest that methods to minimise externalities associated with renewables deployment should be integrated with competitive pay-as-bid auctions.
    Date: 2015–11
  38. By: Heather Klemick; Elizabeth Kopits; Keith Sargent; Ann Wolverton
    Abstract: Economic theory suggests that profit maximizing firms should have an incentive to incorporate technologies into their products that are cost-effective, absent consideration of externalities. Even in the presence of uncertainty and imperfect information – conditions that hold to some degree in every market – firms are expected to make decisions that are in the best interest of the company owners and/or shareholders. However, simple net present value calculations comparing upfront costs of fuel-saving technologies to future savings suggest this is not always the case. This puzzle has been observed in a variety of contexts and is commonly referred to as the “energy efficiency paradox.” A growing number of empirical studies in the peer-reviewed literature examine why households may under-invest in energy efficiency. To our knowledge, far fewer studies examine whether similar undervaluation occurs on the part of businesses. While a variety of hypotheses could explain this behavior, lack of empirical evidence on why businesses do not always invest in seemingly cost-effective energy saving technologies limits our ability to judge whether and when a given hypothesis is likely to be valid. In this paper, we explore capital investment decisions within the heavy duty trucking sector for fuel-saving technologies. Given the lack of readily available data sources to study this industry, we collect information via a combination of focus groups and interviews. While the sample is not representative, we gain insight into what factors might explain apparent underinvestment in emission reducing technologies absent government regulation.
    Keywords: energy efficiency paradox, technology investment decisions, heavy duty trucking
    JEL: Q48 Q52 Q58
    Date: 2014–01
  39. By: Yvon Pesqueux (LIRSA - Laboratoire Interdisciplinaire de Recherche en Sciences de l'Action - Conservatoire National des Arts et Métiers [CNAM])
    Abstract: Le nouvel ordre écologique de Luc Ferry – « écosophie » ou éthique de la responsabilité ? Dans cet essai sur l'écologie, L. Ferry remet en cause les fondements de la vision sympathique généralement associée à la perception courante de l'écologie. Revenant au Moyen-âge, il mentionne les signes d'un « contrat naturel » où les animaux étaient considérés comme des créatures de Dieu suivant la loi naturelle ou comme fléau envoyé par le diable, ils pouvaient être dédommagés ou excommuniés. L'action en justice reconnaissait à l'animalité des traits que l'on retrouve sous d'autres formes aujourd'hui. A titre du pendant à l'obscurantisme médiéval, l'auteur mentionne les droits légaux des arbres par une question soulevée en 1972 en Californie en relation avec les thèses de l'« écologie radicale ». Cette posture sert de référence à la genèse actuelle d'un droit de la nature du même ordre que les droits des personnes, par référence à un humanisme moderne. Le statut juridique de la nature est justifié de façon quasiment ontologique et recoupe la nature juridique déjà défendue durant la période pré-moderne. L'Homme n'a plus vocation à être le seul sujet de droit, en particulier par oubli de la biosphère à partir de l'hypothèse implicite de l'existence d'un ordre cosmique. Il est nécessaire de souligner les trois modalités de la mise en exergue de l'écologie :-celle bâtie sur l'idée que c'est toujours l'Homme qui doit être protégé (position humaniste, voire anthropocentriste), la nature ne restant que ce qui environne,-celle qui attribue une signification morale à certains êtres et reprend le principe utilitariste suivant lequel il faut chercher à diminuer l'ensemble des souffrances du monde (le mouvement de libération animale se trouve alors validé et ce mouvement est présent dans les pays anglo-américains),-celle bâtie sur l'idée que la nature, quelle que soit sa forme, est sujet de droit (position de l'écologie radicale à laquelle l'auteur ajoute Hans Jonas et position très présente aux États-Unis et en Allemagne). Les perspectives écologiques s'accompagnent toujours d'une critique de la modernité. C'est donc dans les pays les plus développés que la présence de la pensée écologique est la plus nette. Les démocraties libérales semblent susciter en elles-mêmes leur propre critique. C'est pourquoi la première critique adressée au monde moderne par l'écologie est celle de la techno-science. C'est ensuite celle de l'exigence d'un environnement sain. C'est enfin celle qui est formulée au nom d'une nostalgie et
    Keywords: écologie, développement durable, théorie des organisations
    Date: 2015–12–12
  40. By: Eline Jongmans (CERAG - Centre d'études et de recherches appliquées à la gestion - Grenoble 2 UPMF - Université Pierre Mendès France - CNRS - Centre National de la Recherche Scientifique); Alain Jolibert (INSEEC - INSEEC Alpes-Savoie - INSEEC, CERAG - Centre d'études et de recherches appliquées à la gestion - Grenoble 2 UPMF - Université Pierre Mendès France - CNRS - Centre National de la Recherche Scientifique); Julie Irwin (McCombs School of Business)
    Abstract: Cet article étudie l’influence des mesures d’évaluation utilisées sur le poids alloué à un attribut environnemental lors de l’évaluation d’un produit. Les résultats de deux expérimentations montrent que les consommateurs tendent à systématiquement surévaluer un attribut environnemental lorsqu’il est évalué en mesure non monétaire et/ou jointe (par rapport à une évaluation en mesure monétaire et/ou séparée). Les conclusions de cette étude remettent en question le principe d’invariance de procédure et invitent les chercheurs et praticiens à prendre en considération la nature de la mesure d’évaluation utilisée pour évaluer le poids de tels attributs par les consommateurs. Mots-clés : invariance de procédure, attribut environnemental, consentement à payer, probabilité d’achat, choix discret
    Keywords: Estimation du poids d'un attribut environnemental,influence et effet des mesures d'évaluation
    Date: 2014
  41. By: Dean Ford; Amy Wood (Reserve Bank of New Zealand)
    Abstract: The Southern Oscillation Index is 1.2 standard deviations below its mean, suggesting that strong El Niño conditions are present. This Note collects together information and empirical insights on El Niño. El Niño conditions do not by themselves condemn New Zealand’s agricultural sector to a poor season. Serious east coast drought and excessive rainfall in the west does not occur during every El Niño, and regional impacts can vary from one event to the next. Nonetheless, it is appropriate to closely monitor climatic conditions during El Niño, given the heightened risk. Indeed, empirical analysis suggests that an El Niño of the current intensity could subtract something in the order of 0.2 to 0.5 percent from New Zealand’s GDP.
    Date: 2015–12
  42. By: Andrés Camilo ÁLVAREZ-ESPINOSA; Daniel Alejandro ORDOÑEZ; Alejandro NIETO; William WILLS; German ROMERO; Silvia Liliana CALDERÓN
    Abstract: Este documento presenta el análisis de los impactos económicos que tendría la implementación de las medidas de mitigación de gases de efecto invernadero que hacen parte del compromiso de Colombia de reducir sus emisiones en un 20% con respecto a las emisiones proyectadas para el año 2030. La ejecución de las medidas que contribuyan al cumplimiento del compromiso adquirido traerá consigo un aumento del PIB de 2,3% en el 2040, equivalente a un aumento en la tasa de crecimiento del PIB de 0,15% anual para el periodo 2020- 2040, frente a un escenario de no hacer nada. Otra consecuencia es que, en el largo plazo, se reduce la tasa de desempleo debido a que se generarán empleos directos en el uso y capacitación de las nuevas formas de producción, e indirectos en el suministro de insumos, servicios, industria. Las inversiones requeridas por las medidas de mitigación son aplicadas a sectores intensivos en trabajo, como lo es el transporte y el sector agropecuario. Debido a la estructura económica y la matriz de emisiones, la implementación de medidas asociadas a la eficiencia energética en el sector de transporte, industrial, y residencial generarían los mayores impactos positivos sobre el crecimiento económico.
    Keywords: Acuerdo de París, mitigación, cambio climático, modelo deequilibrio general.
    JEL: Q54 E17
    Date: 2015–12–16
  43. By: Marius Yapo (Département d'économique, Université de Sherbrooke); Jie He ( Département d'économique, Université de Sherbrooke); Bruno Gagnon (Département de génie civil, Université de Sherbrooke); Luc Savard (Département d'économique, Université de Sherbrooke); Roland Leduc (Département de génie civil, Université de Sherbrooke)
    Abstract: L’objectif de cet article est de déterminer la volonté à payer (VAP) de la population sherbrookoise et magogoise pour l’amélioration de la qualité des eaux du lac et de la rivière Magog; ainsi que leur volonté à accepter (VAA) pour une compensation monétaire dans un scénario d’interruption du système d’épuration des eaux usées. Pour cela, nous utilisons une enquête d’évaluation contingente qui emploie le format de questionnaire VAP-VAA de type MBDC (Multiple Bounded Discrets Choices ou questionnaires à choix discrets et multi-bornes). Pour approfondir l’analyse, nous suivons la logique du modèle de Welsh et Poe (1998) pour déterminer les VAP et VAA moyennes des individus résidant autour du lac et de la rivière Magog. À cet effet, nous trouvons une VAP moyenne par habitant de 98$CA/mois, et une VAA moyenne par habitant de 758$CA/mois.
    Keywords: Évaluation contingente; Qualité de l’eau; Volonté-à-payer; Volonté-à-accepter; lac Magog; rivière Magog.
    Date: 2015–12
  44. By: Germán ROMERO; Andrés Camilo ÁLVAREZ; Silvia CALDERON; Daniel ORDOÑEZ
    Abstract: En este documento se discuten las implicaciones redistributivas de instaurar un impuesto a las emisiones de CO2eq sobre el bienestar de los hogares, vía cambio en los precios de los bienes que consumen. El análisis se realiza, a partir de la integración de un modelo de equilibrio general (MEG4C) y un análisis a nivel de hogares. La estimación de la demanda de los hogares y la sustitución entre los bienes que consumen se logra a través de microsimulaciones comportamentales que se logra mediante la metodología de QAIDS. Los resultados muestran que la imposición de los impuestos tiene efectos negativos en el bienestar de toda la población, en su orden, los hogares de mayores ingresos y para la población más pobre se afecta en una proporción importante mientras que la clase media, resulta siendo la menos afectada. El documento finaliza con una serie de recomendaciones de política para lograr efectos deseados tanto en reducción de emisiones, como en la incorporación de variables de bienestar en las medidas de mitigación.
    Keywords: Impuestos verdes, Microsimulaciones, AIDS, QAIDS, mitigación, Cambio Climático.
    JEL: H20 Q50
    Date: 2015–11–30
  45. By: Strunz, Sebastian; Gawel, Erik; Lehmann, Paul; Söderholm, Patrik
    Abstract: The literature on policy convergence has identified numerous aspects and possible causal drivers of convergence. We classify and condense these into a comprehensive framework, which is operationalized for support policies for renewable energy sources in the EU. Our analysis advances the conceptual discussion in two ways. First, we demonstrate that conceptual specifications of convergence (e.g., whether to focus on policy targets, instrument design or policy outcomes) rely on normative assumptions. Second, we argue that theories of economic and political convergence processes complement each other: studies of economic convergence are apolitical as they do not aim to explain why states choose or should choose the same policies to solve a given problem. At the same time, economic convergence yields a necessary condition for successful policy convergence. The empirical evidence, in turn, suggests conditional convergence of support policies and renewables shares in the EU, but does not hint at absolute convergence.
    Keywords: economic convergence,policy convergence,renewable energy sources,support policies
    Date: 2015
  46. By: Andreas Karpf (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics); Antoine Mandel (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics); Stefano Battiston (Department of Banking and Finance - UZH - University of Zürich [Zürich])
    Abstract: This paper analyses the European Emission Trading System (ETS) from a network perspective. It is shown that the network exhibits a strong core-periphery structure also reflected in the network formation process. Due to a lack of centralized market places, operators of installations which fall under the EU ETS regulations have to resort to local networks or financial intermediaries if they want to participate in the market. This undermines the central idea of the ETS to exploit marginal abatement costs.
    Keywords: network,emission market,ETS,network topology
    Date: 2015–11

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