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on Environmental Economics |
| By: | William Brock; Anastasios Xepapadeas |
| Abstract: | This paper is, to our knowledge, the first paper in climate economics to consider the combination of spatial heat transport and polar amplification. We simplified the problem by stratifying the Earth into latitude belts and assuming, as in North et al. (1981), that the two hemispheres were symmetric. Our results suggest that it is possible to build climate economic models that include the very real climatic phenomena of heat transport and polar amplification, and still maintain analytical tractability. We demonstrate the importance of heat transfer and polar amplification in the welfare analysis of climate change, and in particular on the social price of the climate change externality. Furthermore, we show that the effect of heat transfer and polar amplification on climate policy depend upon the interaction of climate component dynamics with the distribution of welfare weights, population, and productive capacities across latitudes. We discuss optimal fossil fuel taxes in a competitive environment with income effects and show that optimal taxes have a spatial structure and are dependent on each latitude�s output. In addition, we characterize the interactions between spatial transport phenomena and the competitive equilibrium price path of tradable permits. Using general power utility functions, we show that an increase in the coefficient of relative risk aversion will reduce the social price of the climate externality. |
| Keywords: | climate change, heat transport, polar amplification, welfare maximization, fossil fuels, optimal taxation, emissions permits |
| JEL: | Q54 Q58 C61 |
| Date: | 2016–02–26 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:1604&r=env |
| By: | Gozgor, Giray; Can, Muhlis |
| Abstract: | Countries try to stabilize the demand for energy on one hand and sustain economic growth on other, but the worsening global warming and climate change problems have put pressure on them. This paper estimates the environmental Kuznets curve over the period 1971–2010 in Turkey both in the short and the long run. For this purpose, the unit root test with one structural break and the cointegration analysis with multiple endogenous structural breaks are used. The effects of energy consumption and export product diversification on CO2 emissions are also controlled in the dynamic empirical models. It is observed that the environmental Kuznets curve hypothesis is valid in Turkey in both the short run and the long run. The positive effect of energy consumption on CO2 emissions is also obtained in the long run. In addition, it is found that a greater product diversification of exports yields higher CO2 emissions in the long run. Inferences and policy implications are also discussed. |
| Keywords: | environmental Kuznets curve; energy consumption; export product diversification; time series modeling; structural breaks |
| JEL: | C32 O13 Q56 |
| Date: | 2016–02–27 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:69761&r=env |
| By: | Sophie Bernard |
| Abstract: | This paper studies the impact of environmental policies when firms can adjust product design as they see fit. In particular, it considers cross relationships between product design dimensions. For example, when products are designed to be more durable, this may add production steps and increase pollutant emissions during production. More generally, changes applied to one dimension can affect the cost or environmental performance of other dimensions. In this theoretical model, a firm interacts with consumers and a regulator. Before the production stage, the firm must choose the levels of three design dimensions: 1) energy performance during production, 2) energy performance during use, and 3) durability. Depending on the assumptions, the dimensions are said to be complementary, neutral, or competitive. The regulator can promote greener designs by applying targeted environmental taxes on emissions during production or consumption. The main results shed light on the consequences of modifying public policies. When some design dimensions are competitive, a targeted emission tax can result in environmental burden shifting, with an overall increase in pollution. This paper also explores the social optimum and the development of second-best policies when some policy instruments are imperfect. Under given conditions, a government would want to regulate and constraint the level of durability. |
| Keywords: | green design, environmental policies, durability, |
| JEL: | L10 O13 Q53 Q55 Q58 |
| Date: | 2016–02–16 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2016s-09&r=env |
| By: | Sebastian Rausch (ETH Zurich, Switzerland); Jan Abrell (ETH Zurich, Switzerland) |
| Abstract: | This paper analyzes hybrid emissions trading systems (ETS) under partitioned environmental regulation when firms’ abatement costs and future emissions are uncertain. We show that hybrid policies that introduce bounds on the price or the quantity of abatement provide a way to hedge against differences in marginal abatement costs across partitions. Price bounds are more efficient than abatement bounds as they also use information on firms’ abatement technologies while abatement bounds can only address emissions uncertainty. Using a numerical stochastic optimization model with equilibrium constraints for the European carbon market, we find that introducing hybrid policies in EU ETS reduces expected excess abatement costs of achieving targeted emissions reductions under EU climate policy by up to 89 percent. We also find that under partitioned regulation there is a high likelihood for hybrid policies to yield sizeable ex-post cost reductions. |
| Keywords: | Emissions trading, Partitioned environmental regulation, Uncertainty, Prices, Quantities, EU ETS |
| JEL: | H23 Q54 C63 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:16-233&r=env |
| By: | Franklin Amuakwa-Mensah (Department of Economics, Swedish University of Agricultural Sciences); George Marbuah (Department of Economics, Swedish University of Agricultural Sciences); Mwenya Mubanga (Dept. of Medical Sciences, Uppsala University) |
| Abstract: | In this paper, we present evidence based on a theoretical model developed that links the impact of climate variability on health. Using Swedish data on infectious diseases, we empirically estimate the causal relationship between climate variability and health outcomes. Generally, we find that the number of infectious disease patients and admissions are significantly driven by indicators of climate variability and socio-economic variables such as income and number of immigrants. Specifically, the effect of temperature variation on the health outcomes is ambiguous and sensitive to the choice of winter, summer or average temperature. Precipitation is relevant in explaining the number of infectious disease patients and admissions only when summer temperature considered in the model. Further, we find that an increase in carbon emissions directly causes the number patients and admissions in the summer. The relationship between infectious disease proxies (i.e. patients and admissions) and income per capita follows an inverted-U shape. |
| Keywords: | Climate change, Infectious diseases, Migration, Sweden |
| JEL: | Q54 |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2016.02&r=env |
| By: | Amigues, Jean-Pierre; Moreaux, Michel |
| Abstract: | To prevent climate change, three options are currently considered: improve the energy conversion efficiency of primary energy sources, develop carbon free alternatives to polluting fossil fuels, abate potential emissions before they are released inside the atmosphere. We study the optimal mix and timing of these three mitigation options in a stylized dynamic model. Useful energy can come from two sources: a non-renewable fossil fuel resource and a carbon free renewable resource. The extraction cost of the non-renewable resource is an increasing function of past cumulated extraction. The conversion efficiency rates of crude energy into useful energy are open to choice but higher conversion performances are also more costly to achieve. In addition the economy can choose to abate some fraction of its potential emissions and an higher abatement rate incurs higher costs. The society objective is to maintain below some mandated level, or carbon cap, the atmospheric carbon concentration. In the interesting case where the economy would be actually constrained by the cap, at least temporarily, we show the following. The optimal path is a sequence of four time regimes: a ’pre-ceiling’ regime before the economy is actually constrained by the cap, a ’ceiling’ regime at the cap, a ’post-ceiling’ regime below the cap and a final regime of exclusive exploitation of renewable resources. If the abatement option has ever to be used, it should be around the beginning time of the ceiling regime, first at an increasing rate and next at a decreasing rate. The efficiency performance from any source steadily improves with the exception of a time phase under the ceiling regime when it is constant. Renewables take progressively a larger share of the energy mix but their exploitation may be delayed significantly. Carbon emissions drop down continuously although not sufficiently to prevent carbon accumulation up to the cap during the pre-ceiling regime. |
| Keywords: | energy efficiency; carbon pollution; non-renewable resources; renewable resources; abatement |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:30211&r=env |
| By: | David I. Stern (Crawford School of Public Policy, The Australian National University); Donglan Zha (College of Economics and Management, Nanjing University of Aeronautics and Astronautics) |
| Abstract: | Though the environmental Kuznets curve (EKC) was originally developed to model the ambient concentrations of pollutants, most subsequent applications have focused on pollution emissions. Yet, it seems more likely that economic growth could eventually reduce the concentrations of local pollutants than emissions. We examine the role of income, convergence, and time related factors in explaining recent changes in PM 2.5 and PM 10 particulate pollution in 50 Chinese cities using new measures of ambient air quality that the Chinese government has published only since the beginning of 2013. We use a recently developed model that relates the rate of change of pollution to the growth of the economy and other factors as well as the traditional environmental Kuznets curve model. Pollution fell sharply from 2013 to 2014. We show that economic growth, convergence, and time effects all served to lower the level of pollution. The results also demonstrate the relationship between the two modeling approaches. |
| Keywords: | air pollution; economic growth; environmental Kuznets curve; China |
| JEL: | O44 P28 Q53 Q56 |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:een:ccepwp:1603&r=env |
| By: | Schuenemann, Franziska; Thurlow, James; Zeller, Manfred |
| Abstract: | Biofuel production can have conflicting impacts on economic growth, food and energy security, and natural resources. Understanding these trade-offs is crucial for designing policies that are consistent with the Sustainable Development Goals. This is particularly true in low-income countries, where the need to promote both energy and food security is most pressing. To this end, we develop an integrated modeling framework to simultaneously assess the economic and environmental impacts of producing biofuels in Malawi. We extend earlier studies by incorporating the effects of land use change on crop water use, and the opportunity costs of using scarce agricultural resources for biofuels rather than other export crops. We find that biofuel production is generally pro-poor and reduces food insecurity by raising household incomes. Irrigated outgrower schemes rather than estate farms lead to better economic outcomes, fewer greenhouse gas emissions, and similar crop water requirements. Nevertheless, Malawi must reduce emissions from its ethanol plants in order to access European markets. We also find that the economic and environmental impacts of biofuels are preferable to those of tobacco or soybeans. The European Union has raised the standards expected of biofuel producers, but it should “level the playing field” by applying similar standards to other export crops from developing countries. |
| Keywords: | water use, land use, energy, biofuels, food security, bioenergy, fuels, natural resources, sustainability, emissions, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1500&r=env |
| By: | Amigues, Jean-Pierre; Moreaux, Michel |
| Abstract: | We study an economy producing energy services from a polluting fossil fuel and a carbon free renewable resource under a constraint on the admissible atmospheric carbon concentration, equivalently under a constraint on the admissible temperature. The transformation rates of natural primary resources energy into useful energy are costly endogenous variables. Choosing higher efficiency rates requires to bring into operation more sophisticated energy transformation devices, that is more costly ones. We show that, independently of technical progress, along a perfect foresight equilibrium path which is Pareto optimal, the transformation rate of any exploited resource should increase throughout time, excepted within the period during which the carbon constraint is binding, a phenomenon we call the ’ceiling paradox’. |
| Keywords: | energy efficiency; carbon pollution; non-renewable resources;renewable resources. |
| JEL: | Q00 Q32 Q43 Q54 |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:30209&r=env |
| By: | Emna Omri (RUDE - Research Unit in Development Economics - University of Sfax, Tunisia); Nouri Chtourou; Damien Bazin (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | The massive increase in production and consumption of fossil fuels during the 20th century was accompanied by several problems in economic, social and environmental levels. Thus, the energy as it is produced, distributed and consumed currently does not meet the requirements of sustainable development. Hence it is necessary to use RE that do not emit GHG in order to move toward the sustainable development. Since mid-1980s, Tunisia has implemented its national strategy in the field of RE. To revive the market of solar water heating, the government decided to establish, in 2005, an ambitious program called PROSOL. With the help of case study (PROSOL project), the paper shows that the contribution of RE to the economic, social and environmental dimensions of sustainable development is significant. |
| Keywords: | Développement durable,énergies renouvelables,projet PROSOL |
| Date: | 2015–01–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-01070616&r=env |
| By: | Rogers, Abbie A.; Burton, Michael P. |
| Abstract: | Understanding the social acceptability of biodiversity offsets is important in order to properly design offset policy. This study used a discrete choice experiment to quantify preferences of the Australian community for a migratory shorebird offset, in the context of an oil and gas development. The attributes in the choice experiment were comprised of several offset policy characteristics, with a view to informing future policy design of the social dimensions related to offset acceptability. We found that the practice of offsetting was accepted by the community as a means to allow economic development. The ability to exchange protection of a species impacted by the development for a more endangered species was a desirable policy characteristic, as was having the offset implemented by a third party or the government, as compared with the company responsible for the development. Direct offset activities were preferred over indirect, and there was a strong aversion to locating the offset at a site other than where the impact occurred. While some policy characteristics were less desirable from a social perspective, it was possible to compensate for these by increasing the amount of biodiversity protected by the offset. |
| Keywords: | choice experiment, nonmarket valuation, shorebird offset, environmental offset, Environmental Economics and Policy, Q510, Q570, Q580, |
| Date: | 2016–02–17 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uwauwp:231533&r=env |
| By: | Philippe Polomé (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - CNRS - Centre National de la Recherche Scientifique - UCBL - Université Claude Bernard Lyon 1 - UL2 - Université Lumière - Lyon 2 - Université Jean Monnet - Saint-Etienne - PRES Université de Lyon - ENS Lyon - École normale supérieure - Lyon); Jérôme Trotignon (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - CNRS - Centre National de la Recherche Scientifique - UCBL - Université Claude Bernard Lyon 1 - UL2 - Université Lumière - Lyon 2 - Université Jean Monnet - Saint-Etienne - PRES Université de Lyon - ENS Lyon - École normale supérieure - Lyon) |
| Abstract: | Brazilian Amazon deforestation rate is found to display a unit root and to be cointegrated with Brazilian GDP and its square – An Environmental Kuznets Curve (EKC). Although, it is not the first time that such an EKC is detected, this may be the first such time-series evidence. Detecting an EKC is hampered by several econometric issues that have been shown to lead to possibly spurious results in cross-section and panel contexts, but are satisfactorily addressed in a cointegrated (time-series) framework. Alternative theories for explaining the deforestation path are rejected. There is evidence that the " Action Plan " of the Brazilian government against deforestation had an important effect. These results are in contrast to the economics literature on an EKC in emissions such asCO2, but appear to be consistent with a geographical sciences literature that considers that deforestation declines when alternative activities become available. |
| Keywords: | Amazon deforestation, unit root, cointegration, “ Action Plan ” policy, Environmental Kuznets Curve |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01274854&r=env |
| By: | Edoardo Croci; Aldo Ravazzi Douvan |
| Abstract: | Urban road pricing schemes have been designed in order to reduce externalities generated by traffic. Main impacts regard: time loss due to congestion, local pollution, noise; contribution to climate change caused by emissions of GHGs, pavement costs and road damages, increase in accidents risks, extra-fuel consumption, decrease in quality of life. Moreover road pricing schemes generate public revenues. The paper performs a comparative evaluation of the three main experiences of urban road pricing in Europe: London (in operations since 2003), Stockholm (in operations since 2007, after a period of trial in 2006) and Milan (in operations since 2008, with a shift from pollution to congestion charge in 2012). Since their launch, the schemes have been adjusted in terms of amount of charge, area of application and other features. The schemes have been able to reduce negative externalities generated by traffic, such as accidents, congestion and emissions, up to different levels. A comparative analysis of the three schemes is provided. Determinants of differences in the effectiveness of the schemes are evaluated with a particular focus on elasticity of use of private vehicles to charge. The results can be useful to design well targeted congestion charge schemes and to assess their efficacy. |
| Keywords: | Urban road pricing, Travel demand elasticity, Sustainable mobility |
| JEL: | H23 R41 R48 Q51 D12 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:bcu:iefewp:iefewp85&r=env |
| By: | Martina Bozzola; Melinda Smale; Salvatore Di Falco |
| Abstract: | We explore how climate, climate risk and weather affect maize intensification among smallholders in Kenya. We find that they all play an important role in maize intensification choice. The economic implications of this choice are also analyzed. We find that the share of maize area planted to hybrid seeds contributes positively to expected crop income, without increasing exposure to income variability or downside risk. The promotion of maize intensification is potentially a valuable adaptation strategy to support the well-being of smallholder farmers. |
| JEL: | D81 O13 Q12 Q18 |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:fsc:fspubl:39&r=env |
| By: | Shawkat Hammoudeh; Amine Lahiani; Duc Khuong Nguyen; Ricardo M. Sousa |
| Date: | 2016–02–18 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-82&r=env |
| By: | Somlanare Romuald KINDA (Centre d'Etudes et de Recherches sur le Développement International(CERDI)); Eric Nazindigouba KERE |
| Abstract: | This article analyzes the role of spatial spillovers in the relationship between climate change and food security in developing countries over the period of 1971-2010. Using a Samuelson’s spatial price equilibrium model (theoretically) and Spatial Durbin Model (empirically), results show a strategic substitutability between the levels of food availability in the countries suggesting that an increase of food availability in a given country decreases the food availability of neighboring countries. Second climate change (water balance variability, droughts, floods and extreme temperatures) reduces food availability both in the affected countries and its main food trading partners. Third, food demand factors in a country may have the opposite (asymmetric) effect on its major trading partners. Fourth, supply factors have symmetric impact on food availability. |
| Keywords: | Food security; Climate change; Spatial spillovers; Spatial econometrics; Developing countries. |
| JEL: | Q54 Q18 Q17 C23 |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:cdi:wpaper:1788&r=env |
| By: | Sahbi Farhani; Anissa Chaibi; Christophe Rault |
| Date: | 2016–02–18 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-56&r=env |
| By: | Tomas Havranek; Roman Horvath; Ayaz Zeynalov |
| Abstract: | An important question in development studies is how natural resource richness affects long-term economic growth. No consensus answer, however, has yet emerged, with approximately 40% of empirical papers finding a negative effect, 40% finding no effect, and 20% finding a positive effect. Does the literature taken together imply the existence of the so-called natural resource curse? In a quantitative survey of 402 estimates reported in 33 studies, we find that the effect of natural resources on growth is very small when potential publication bias and method heterogeneity are taken into account. Our results also suggest that three aspects of study design are especially effective in explaining the differences in results across studies: 1) including an interaction between natural resources and institutional quality, 2) controlling for the level of investment activity, and 3) distinguishing between different types of natural resources. |
| Keywords: | Economic growth, institutions, meta-analysis, natural resources, publication selection bias |
| JEL: | C51 O13 Q30 |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:cnb:wpaper:2016/01&r=env |
| By: | Romaniuc, Rustam |
| Abstract: | The use of mild laws to affect people’s behavior is pervasive – from environmental regulation to tort law – but little is known about how the law changes human behavior and social outcomes when it uses non-deterrent monetary incentives. We find that when low monetary incentives are used in tandem with an indication of what one should do (i.e., a norm), then the effect on behavior is positive but transitory. The effect is long lasting when we use low monetary incentives in isolation. This suggests that the indication of what one should do makes salient the conflict between people’s normative expectations and what others effectively do. This undermines conditional cooperators’ own motivation to contribute to public goods. Finally, we compare the effects of mild laws with how mere messages indicating what is moral behavior affect contributions to the public good. Contrary to the existing experimental evidence, we find that messages fail to improve cooperation. We spotlight the conditions under which this is the case. |
| Date: | 2015–12 |
| URL: | http://d.repec.org/n?u=RePEc:uca:ucaiel:20&r=env |
| By: | Manuel Baumann (IET/CICS.NOVA, Universidade Nova de Lisboa, Faculdade de Ciências e Tecnologia, and ITAS, Karlsruhe Institute of Technology) |
| Abstract: | A main problem of Renewable Energy Sources (RES) as solar and wind energy, which represent a main pillar of the German energy transition, is that they cannot supply constant power output leading to an increasing demand of backup technologies as pumped hydro storage. This study analyses in the first part the controversial large scale PHS project Atdorf in Germany. On the one hand this project is seen as a prerequisite for a successful energy system transition by the German government. On the other hand there is also a strong local movement opposing the project mainly due to environmental concerns. It is a difficult tightrope walk to immolate to a certain degree local interests of a few to achieve an ostensible higher goal as a sustainable energy system. Simultaneously an interpretative phenomenological analysis (IPA) orientated approach was conducted to understand the interest of the multi-stakeholders involved in this controversial case and contributed to the development of the story viewed by the ones living it. The IPA was conducted in detail for the citizen action groug “Bürgerinitiative (BI) Atdorf) and offered the possibility to gather unexpected insight into the entire decision process. The Atdorf project remains in this sense very controversial and unveils several problems allocated to the entire process of the energy transition in Germany. It highlights how large infrastructural energy projects can become complex due to multiple stakeholder perspectives, beliefs and interests. The example of Atdorf was then used as a base to build a hypothesis for a dynamic behaviour model of the ongoing decision process. It could be concluded that the project is stagnating due to uncertain market conditions caused by increasing shares of public financed RES, missing regulation and clear targets in combination with local protests. This general model was used to develop a qualitative system dynamics model, illustrated by a causal loop diagram (CLD). Aim of the CLD was to identify leverage points that lead to incentives for new energy storage technologies and allow the achievement of a renewable energy based electricity system. Three leverage points have been identified; 1) amount of Renewable energy which is influencing almost all other components of the system including markets, need for balancing, investment decisions etc. 2) development and the composition of electricity whole sale markets have to be adopted including EU-Emission trading system to avoid backfire effects; 3) higher level of coordination of energy policies, regulation and related targets to provide a better frame for decisions. The identified points could be confirmed via interviews conducted with experts from energy economics. Most participants concluded that there is a severe market problem at the moment facing a high acceptance problem regarding large pumped hydro storage projects. In general the conducted research helped to gather a better understanding of complex decision making processes and unveiled the importance of right communication within large infrastructural projects as Atdorf. |
| Keywords: | Renewable Energy, energy policies, energy transition, Germany |
| JEL: | D74 D81 O25 |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:ieu:wpaper:64&r=env |
| By: | Ingmar Schumacher |
| Date: | 2016–02–18 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2013-13&r=env |
| By: | Engelmann, Marc (Department of Economics, Swedish University of Agricultural Sciences); Lagerkvist, Carl-Johan (Department of Economics, Swedish University of Agricultural Sciences); Gren, Ing-Marie (Department of Economics, Swedish University of Agricultural Sciences) |
| Abstract: | The purpose of this study is to estimate hunters’ valuation of wild boar in Sweden. However, hunters have access to hunt, not only wild boar, but also other game such as moose and roe deer. Therefore, wild boar is regarded as an attribute of hunting together with other game, which includes moose, roe deer, and small game. A discrete choice experiment framework is used to elicit hunters’ trade-offs between wild boar, moose, roe deer and small game. Estimates with a mixed logit model showed that the average annual willingness to pay (WTP) for a wild boar is approximately SEK 330/animal, which corresponds to 1/8 of the average WTP for a moose and ¼ of that for a roe deer. The range in WTP is determined by the activity of the hunters, as measured by number of hunting days per year, the least active gives the lowest WTP (SEK 113) and the most active the highest WTP (SEK 529). This can be a result of the specific challenges when hunting the wild boars, which are active in night time and equipped with excellent hearing and smell. Hunters that are farmers also give a relatively low WTP (SEK 134), which can be explained by the damages on crops created by the animal. |
| Keywords: | wild boar; hunting value; Sweden; game as attributes; choice experiment |
| JEL: | Q29 Q57 |
| Date: | 2016–02–21 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:slueko:2016_001&r=env |
| By: | Can Askan Mavi (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) |
| Abstract: | This paper aims to present another explanation for environmental inequalities, by the presence of catastrophic environmental events. We develop a simple dynamic model in which economy is subject to risk of catastrophic events. We show that implementing only adaptation policy could cause multiple equilibria, which we interpret it as an environmental inequality accross different regions or countries. Contrary to this result, it is shown that mitigation policy could save an economy from multiple equi-libria. As a result, we show that adaptation and mitigation policy represents a trade-off concerning environmental inequalities. Based on this elements, we analyze the optimal policy mix of adaptation and mitigation activities, which could avoid these inequalities and show how optimally the policy mix can be implemented with taking into account the catastrophe probability. Our simulation results show that when economy faces a higher risk, both of policies increases but adaptation investment increases much more relatively to mitigation activity. |
| Keywords: | Occurence Hazard,Abrupt damage,Adaptation,Inequality,Multiple Equilibria,Mitigation |
| Date: | 2016–02–16 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-01275174&r=env |
| By: | William L. Huth; David M. McEvoy; O. Ashton Morgan |
| Abstract: | The rapidly growing population of lionfish – an invasive species in the United States and Caribbean waters – is stressing the already fragile coral reefs in the Gulf of Mexico and is threatening local commercial and recreational fisheries. One potential strategy of controlling population growth is through consumption, which has direct private benefits but also contributes to the broader public good of invasive species management. The viability of this strategy depends in part on the values consumers place on eating lionfish. As an established market for lionfish does not yet exist, we estimate consumers’ valuation for eating lionfish using framed-field experiments. Our design allows us to separate consumers’ direct private value with their indirect public value of helping to control population growth. Without information about the invasive nature of lionfish and the need for population control, consumers, on average, are willing to pay $6.28 for a three-ounce prepared fillet. The average bid increases by $0.71 when consumers learn about the harmful impacts lionfish have on the environment and that consuming them can help curb population growth. Finally, the average bid increases by $1.66 when consumers also learn about the possibility of localized extinction of valuable commercial species if the lionfish population is left unchecked. Key Words: |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:apl:wpaper:16-05&r=env |
| By: | Hassan Benchekroun; Ngo Van Long |
| Abstract: | We study the possibility of aggravation of the tragedy of the commons when the players of the game care about social status. In our model the players share access to a renewable resource and sell their production in a common market where they are oligopolists. We depart from the mainstream literature on common pool resource oligopolies by considering that each player cares about her social status. We identify two channels that may impact a player’s welfare: harvest and profits. Under the first channel, a player has a bump in her utility when her harvest is larger than the average harvest of the rest of the players. In this case we show that the presence of this channel exacerbates the tragedy of the commons. Under the second channel, a player enjoys a bump in her utility if she manages to earn more profits than the average profit of the other players. In this case we show that social status concern may temporarily alleviate the tragedy of the commons: it results in a decrease of extraction over an interval of stock sizes. Nous étudions la possibilité d’aggravation de la tragédie des biens communs quand les joueurs du jeu se soucient de leur statut social. Dans notre modèle les joueurs ont accès à une ressource renouvelable et vendent leurs produits dans un marché commun. Nous nous éloignons de la littérature conventionnelle en considérant la situation dans laquelle chaque joueur se soucie de son statut social. Nous identifions deux canaux qui peuvent avoir un impact sur le bien-être d’un joueur : la récolte et le profit. Avec le premier canal, le niveau d’utilité d’un joueur accroît quand sa récolte est supérieure à la récolte moyenne des autres joueurs. Dans ce cas, nous montrons que ce canal aggrave la tragédie des biens communs. Avec le second canal, le niveau d’utilité d’un joueur accroît quand son profit est supérieur au profit moyen des autres joueurs. Dans ce cas nous prouvons que le souci de son statut social peut temporairement soulager la tragédie des biens communs : le taux d’exploitation devient moins élevé dans un intervalle de la taille des stocks. |
| Keywords: | Social Status; Relative Performance; Envy; Common Property Resources; Oligopoly, statut social; performance relative; envie; ressources de propriété commune; oligopolie |
| JEL: | D62 Q20 Q50 |
| Date: | 2016–02–23 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2016s-11&r=env |
| By: | Rodríguez, Xosé A.; Arias, Carlos; Rodríguez-González, Ana |
| Abstract: | The present paper explores the relationship between physical and economic depletion of a nonrenewable natural resource using a decomposition of mining costs akin to the one used in the literature on productivity and technical change. We argue that this decomposition can provide key insights on future availability of nonrenewable natural resources. Using data on slate mining in Galicia Northern Spain), we provide quantitative evidence of the role played by physical depletion in economic exhaustion but also of the offsetting effects of technical change. Additionally, we provide a measure of the effects on economic depletion of input prices, output, fixed inputs and production scale. Input prices and fixed input misallocation contributes far more to economic depletion than physical depletion while technical change has a remarkable negative contribution to economic depletion. Policy implications are discussed, particularly, the importance of promoting technical change. |
| Keywords: | Non-renewable natural resources, Physical depletion, Economic depletion, Mining cost, Slate mining, Technical change, Total Cost Growth decomposition |
| JEL: | C32 L72 O40 Q30 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:oeg:wpaper:2015/01&r=env |
| By: | Juyong Zhang (Dalian Nationalities University) |
| Abstract: | Campus as an ecosystem in nature has ecological carrying capacity; its health is closely related to the degree of development of the university. The mainstream method of evaluation of ecological level is component analysis method, using this method to calculate the ecological footprint on campus; in the analysis of ecological footprint, six main categories of biological productive area are distinguished: energy, food, garbage, paper, water and transportation. In this paper, we use the field survey and sampling methods to obtain relevant data, while introducing the concept of elasticity, we view the data collected as independent variables. However, some data changes little over time called inelastic, such as food, garbage, paper and so on. Some data fluctuates greatly over time called elastic, such as energy, water and so on. The result of the survey shows that the ecological footprint of energy is the largest. At the end of the text, the paper makes reasonable proposals on how to save food and energy saving. |
| Keywords: | ecological footprint; Dalian Nationalities University; energy; transportation |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:3305651&r=env |
| By: | Ingmar Schumacher |
| Date: | 2016–02–18 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2013-5&r=env |
| By: | Mwivei Shitima, Christina |
| Abstract: | River basin resources contribute in diverse ways in the livelihoods of rural people in Tanzania. People living around these areas depend on small scale agriculture, subsistence forestry, artisanal fishing, livestock keepings, artisanal mining and small-scale trade as sources of livelihoods. While it was expected that these important livelihood assets would be used in sustainable ways, the destructive practices behaviour related to the use of basins resources are increasing. Increase of population, declining of agricultural productivity without increase of employment in industrial sector are among the factors that lead to competition for the use of river basin resources. This paper aims at providing an analytical framework that elaborates the relationship between people’s access to and control over resources and sustainability of River basin resources in Tanzania. It uses the concept of livelihood framework, together with institutional theories to build the analytical framework that elaborates multiplicity of factors that affect sustainability of river basin resources in Tanzania. The livelihood framework is modified to include the concept of Ostrom’s polycentric governance system to study how different institutions interact in the governance of river basin resources in Tanzania to affect the sustainability of River basin resources. This is the first paper to link the concept of polycentric governance system with the livelihood framework. This paper is part of the literature review that will feed into the PhD research on household development strategies and their linkage to RBR degradation in Tanzania. |
| Keywords: | Tanzania; River Basin Resources; livelihoods |
| Date: | 2015–12 |
| URL: | http://d.repec.org/n?u=RePEc:iob:wpaper:201507&r=env |
| By: | Nielsen, Thea; Schunemann, Franziska; McNulty, Emily; Zeller, Manfred; Nkonya, Ephraim M.; Kato, Edward; Meyer, Stefan; Anderson, Weston; Zhu, Tingju; Queface, Antonio; Mapemba, Lawrence |
| Abstract: | This study summarizes the concept of the food-energy-water security nexus (FEW nexus). The aim is to create awareness about the importance of the nexus and to enable stakeholders to consider interconnections between the sectors in their work. The FEW nexus is discussed in the context of Africa south of the Sahara (SSA)—using Malawi and Mozambique as case studies. Even though analyzing food, energy, and water security issues simultaneously is critical given the interconnections, summarizing interventions with the FEW nexus approach in Malawi and Mozambique, we found that there are only a limited number of interventions in place. Additionally, this study reviews macro- and microeconomic models that are able to analyze the FEW nexus. On the macrolevel, especially general equilibrium models are discussed, because they show trade-offs and synergies of nexus interventions at all economic levels. These models can help guide policymakers’ understanding of nexus effects ex ante and convince them to think beyond their respective political departments. On the microlevel, the impact of nexus interventions can be assessed with qualitative and quantitative approaches. There are specific challenges for nexus interventions when it comes to aggregation and planning of the targeting. A secondary data analysis of nexus interventions shows that existing data is not sufficient to conduct research specifically related to the FEW nexus. The results of this study will help research programs to reflect the key questions required to enhance adoption of FEW technologies and inform policymakers as they formulate policies that will exploit the strong synergies of food security, energy, and water investments. |
| Keywords: | food, energy, water, macroeconomics, microeconomics, mathematical models, food policies, water policies, energy policies, nexus, interventions, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1480&r=env |
| By: | Clancy, S.A.; Gardner, J.C.; Grygiel, C.E.; Biondini, M.E.; Johnson, G.K. |
| Keywords: | Crop Production/Industries, Environmental Economics and Policy, Farm Management, |
| URL: | http://d.repec.org/n?u=RePEc:ags:nddmpu:231439&r=env |
| By: | Carreri, Maria; Dube, Oeindrila |
| Abstract: | Do natural resources impair institutional outcomes? Existing work studies how natural resources influence the behavior of leaders in power. We study how they influence leaders' rise to power. Our analysis focuses on oil price shocks and local democracy in Colombia, a country mired in civil conflict. We find that when the price of oil rises, legislators affiliated with right-wing paramilitary groups win office more in oil-producing municipalities. Consistent with the use of force to gain power, positive price shocks also induce an increase in paramilitary violence, and reduce electoral competition: fewer candidates run for office, and winners are elected with a wider vote margin. Ultimately, fewer centrist legislators are elected to office, and there is diminished representation at the center. Our findings highlight how natural resources undermine democracy by distorting elections, and suggest that conflict leaves the political sector vulnerable to the resource curse. |
| Keywords: | conflict; democracy; elections; leaders; Natural resources |
| JEL: | D72 H11 H70 O12 O13 Q34 |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:11136&r=env |
| By: | Bazoumana Ouattara; Eric Strobl |
| Date: | 2016–02–18 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-70&r=env |
| By: | Rémi BAZILLIER; Sophie HATTE; Julien VAUDAY |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:leo:wpaper:2315&r=env |
| By: | Roger Alejandro Banegas-Rivero (Instituto de Investigaciones Económicas y Sociales 'José Ortiz Mercado' (IIES-JOM), Universidad Autónoma Gabriel René Moreno.) |
| Abstract: | En este documento se explican dos causas aditivas a la maldición o entorpecimiento de los recursos naturales sobre el crecimiento económico como contribución a la literatura existente. El entorpecimiento se presenta dada la interacción individual entre: a) inversión - ahorro interno (ineficiencia de la movilidad interna de capitales) e b) inversión - gasto público, mismas que inhiben el crecimiento. De forma unidireccional, la inversión es el principal determinante sobre el crecimiento económico con evidencia para cinco países de América Latina (incluyendo Bolivia) durante 1982 a 2012 mediante paneles dinámicos. Los resultados señalan que la renta de los recursos naturales presenta efectos diferenciados en la inversión, ahorro interno y externo. |
| Keywords: | Renta de recursos naturales, ahorro-inversión, crecimiento económico. |
| JEL: | Q33 E21 E22 O47 M21 |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:grm:wpaper:201503&r=env |