nep-env New Economics Papers
on Environmental Economics
Issue of 2017‒03‒19
35 papers chosen by
Francisco S. Ramos
Universidade Federal de Pernambuco

  1. Comparing the trends and strength of determinants to deforestation in the Brazilian Amazon in consideration of biofuel policies in Brazil and the United States By Miguel Carriquiry; Amani Elobeid; Ryan Goodrich
  2. Population Dynamics and Carbon Emissions in the Arab Region: An Extended Stirpat II Model By Hala Abou-Ali; Yasmine M. Abdelfattah; John Adams
  4. Natural cycles and pollution By Stefano Bosi; David Desmarchelier
  5. Environmental regulations and competitiveness: evidence based on Chinese firm data By Ankai Xu
  6. Does Income Growth Relocate Ecological Footprint? By Sevil Acar; Ahmet Atil Asici
  7. Stated Preferences for Conservation Policies under Uncertainty: Insights on Individuals’ Risk Attitudes in the Environmental Domain By Michela Faccioli; Laure Kuhfuss; Mikołaj Czajkowski
  8. Contaminación Ambiental por Basura ¿Cómo Eliminan los Hogares Nicaragüenses la Basura que Generan? By Ruiz Pérez, Jeferson Ricardo
  9. Possibilities and challenges in transfer and generalisation of monetary estimates for environmental and health benefits of regulating chemicals By Ståle Navrud
  10. Computational analysis of source receptor air pollution problems By Halkos, George; Tsilika, Kyriaki
  11. Investigating the interdependence between non-hydroelectric renewable energy, agricultural value added, and arable land use in Argentina By Ben Jebli, Mehdi; Ben Youssef, Slim
  12. Dirty Little Secrets: Inferring Fossil-Fuel Subsidies from Patterns in Emission Intensities By Radoslaw Stefanski
  13. China’s changing economy: implications for its carbon dioxide emissions By Fergus Green; Nicholas Stern
  14. Technology Treaties and Climate Change By Hans Gersbach; Marie-Catherine Riekhof
  15. How to measure greenhouse gas emissions by fuel type for binary sustainability standards: Average or Marginal emissions? An example of fertilizer use and corn ethanol By Zhu, Xueqin; Yan, Shiyu; Smeets, Edward; van Berkum, Siemen
  16. Biofuels in Southern Africa: Political economy, trade, and policy environment By Taku Fundira; Giles Henley
  17. The Cost of Greening Stimulus: A Dynamic Discrete Choice Analysis of Vehicle Scrappage Programs By Shanjun Li; Chao Wei
  19. Labour as a utility measure reconsidered By Ahlheim, Michael; Frör, Oliver; Nguyen Minh Duc; Rehl, Antonia; Siepmann, Ute; Pham Van Dinh
  20. Weather and income: effect on household saving and well-being in South Africa. By Helena Ting; Martina Bozzola; Timothy Swanson
  21. Temperature Anomalies, Radiative Forcing and ENSO By Morana, Claudio; Sbrana, Giacomo
  22. The Sustainability Footprint of Institutional Investors By Rajna Gibson; Philipp Krueger
  23. Freight Futures: The Potential Impact of Road Freight on Climate Policy By Carrara, Samuel; Longden, Thomas
  24. La capture et le stockage du CO2 : Adaptation au changement climatique ou Technologie de géo ingénierie ? By Xavier GALIEGUE
  25. Potential biofuel feedstocks and production in Zambia By Paul C. Samboko; Mitelo Subakanya; Cliff Dlamini
  26. Providing efficient network access to green power generators: : A long-term property rights perspective. By Petropoulos, G.; Willems, Bert
  27. Pollution or Crime: The Effect of Driving Restrictions on Criminal Activity By Paul E. Carrillo; Andrea Lopez; Arun Malik
  28. Chemical risk assessment and translation to socio-economic assessments By Weihsueh A. Chiu
  29. The Impact of Natural Resource Discoveries in Latin America and the Caribbean; A Closer Look at the Case of Bolivia By Frederik G Toscani
  30. Regulating the tragedy of commons: nonlinear feedback solutions of a differential game with a dual interpretation By L. Lambertini
  31. System Integration of Wind and Solar Power in Integrated Assessment Models: a Cross-model Evaluation of New Approaches By Pietzcker, Robert C.; Ueckerdt, Falko; Carrara, Samuel; de Boer, Harmen Sytze; Després, Jacques; Fujimori, Shinichiro; Johnson, Nils; Kitous, Alban; Scholz, Yvonne; Sullivan, Patrick; Luderer, Gunnar
  32. Anaerobic digestion of lignocellulosic biomasses pretreated with Ceriporiopsis subvermispora By Xun X. Liu; Serge Hiligsmann; Gourdon; Rémy R. Bayard
  33. Phasing out coal and phasing in renewables – good or bad news for arctic gas producers? By Lars Lindholt; Solveig Glomsrød
  34. The light at the end of the tunnel: the impact of policy on the global diffusion of fluorescent lamps By Suchita Srinivasan
  35. Weather adjustment of economic output By Schreiber, Sven

  1. By: Miguel Carriquiry (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Amani Elobeid (Iowa State University (USA). Department of Economics); Ryan Goodrich (Iowa State University (USA). Department of Economics)
    Abstract: Recent assessments of the lifecycle greenhouse gas (GHG) emissions associated with increased production of liquid biofuels in the U.S. have found that a relatively large share of these emissions is related to land-use change in other countries, with Brazil playing a prominent role. However, most of the existing analyses including EPA’s RFS assumptions about indirect land-use change (ILUC) do not reflect recent data on deforestation rates in Brazil, which have been declining. There seems to be evidence that agricultural producers in Brazil are intensifying crop and livestock production and incorporating new land at lower rates than in the recent past. Additionally, the competition for forestry areas, and in particular between agriculture, pastures, and planted forests is poorly understood, and not explicitly taken into account in previous assessments in several modeling exercises. This paper provides a review of several of the major factors that will determine the need to incorporate additional land to production in response to a demand increase, for example as a result of biofuel policies. This additional land that may need to be brought into production is critical as it will affect significantly the environmental credentials and in particular carbon footprints of different biofuels. Among the factors reviewed are the potential for yield intensification in response to higher returns (intensification effects), and the limited existing evidence in yield drags as areas are incorporate to crop production (extensification effects). Scenario analysis using an augmented version of the CARD/FAPRI agricultural modeling system (augmented to include planted forests in Brazil) seem to provide evidence, that intensification of crops and livestock production in countries like Brazil, and of competition with planted forests reduces the pressure for deforestation of natural areas. We also highlight that the explicit modeling of planted forests as a user of land, allows for the inclusion of the competition of this activity (and its resistance to give away area) with the more traditionally modeled crops and pastures.
    Keywords: Biofuels, Land use change modeling, Production intensification
    JEL: Q10 Q16 Q18
    Date: 2016–12
  2. By: Hala Abou-Ali (Cairo University); Yasmine M. Abdelfattah (The British University in Egypt); John Adams
    Abstract: Many Arab countries have been developing at a fast pace in the past 20 years and this is now seen as putting considerable pressure on the natural environment through population growth, ecosystem stress and resource extraction. The potential for climate change arising from increasing carbon dioxide emissions threatens the likelihood of a more sustainable development model being achieved in many of these countries. The paper deals with Arab countries’ population-environment nexus with respect to climate change interactions. The paper adopts the STIRPAT II model, which measures the influence of population, affluence and technology on the environment. The environmental impact is measured through carbon dioxide (CO2) emissions. The version of the model is extended in the paper to include specific elements that, a priori, can be expected to be of particular relevance to these countries. These include Governance indicators, energy consumption and energy production indices. The results supports the endogeneity of Governance as well as Arab countries need effective governments to minimize carbon emissions.
    Date: 2016–04
  3. By: Huffaker, Ray
    Abstract: The negative impacts of climate change on global water resources, agriculture, land resources, biodiversity, and ecosystem services are well known (e.g., temperature increases, increasing carbon dioxide levels, and altered patterns of precipitation). Lesser publicized is how climate change reinforces another key transformational driver: invasive species. The interactive dynamics of both drivers greatly magnify the devastating impacts of each on ecosystem services essential to human life and productive activities. This paper discusses how the academic literature has conceptualized the relationship between climate change and invasive species.
    Keywords: Environmental Economics and Policy, Land Economics/Use,
  4. By: Stefano Bosi (EPEE, University of Evry); David Desmarchelier (BETA, University of Lorraine)
    Abstract: In this paper, we study a competitive Ramsey model where a pollution externality, coming from production, impairs a renewable resource which affects the consumption demand. A proportional tax, levied on the production level, is introduced to finance public depollution expenditures. In the long run, two steady states may coexist, the one with a low resource level, the other with a high level. Interestingly, a higher green tax rate lowers the resource level of the low steady state, giving rise to a Green Paradox (Sinn, 2008). Moreover, the green tax may be welfare-improving at the high steady state but never at the low one. Therefore, at the latter, it is optimal to reduce the green tax rate as much as possible. Conversely, the optimal tax rate is positive when the economy experiences the high steady state. This rate is unique. In the short run, the two steady states may collide and disappear through a saddle-node bifurcation. Since consumption and natural resources are substitutable goods, a limit cycle may arise around the high stationary state. To the contrary, this kind of cycles never occur around the low steady state whatever the resource effect on consumption demand. Finally, focusing on the class of bifurcations of codimension two, we find a Bogdanov-Takens bifurcation.
    Keywords: Logistic dynamics, Ramsey model, Saddle-node bifurcation, Hopf bifurcation, Bogdanov-Takens bifurcation
    JEL: E32 O44
    Date: 2017–02
  5. By: Ankai Xu
    Abstract: This paper provides empirical evidence in support of the Porter hypothesis that tighter environmental regulations can increase productivity under certain circumstances. It builds on a theoretical model in which environmental regulations induce firms to adopt more efficient technologies. Using Chinese firm-level data covering a ten-year period, the empirical study examines the effects of two specific policy instruments - the pollution levy and regulatory standards - on firm productivity. It finds a bell-shaped relationship between pollution levies and the total factor productivity of firms, indicating that an increase in the pollution levy rate can be associated with higher productivity. In addition, the study investigates the effect of pollution emission standards on firm productivity and identifes an initial negative effect which diminishes after a period of two to three years.
    Keywords: Environmental regulations, Innovation, Productivity, Porter hypothesis, China.
    JEL: D2 F18 Q52 Q55 Q56
    Date: 2016–12–15
  6. By: Sevil Acar (Istanbul Kemerburgaz University); Ahmet Atil Asici
    Abstract: The aim of this paper is to investigate whether countries tend to relocate their ecological footprint as they grow richer. The analysis is carried out for a cross-section of 105 countries by employing the production and import components of the Ecological Footprint data of the Global Footprint Network belonging to the year 2006. With few exceptions, the existing Environmental Kuznets Curve (EKC) literature concentrates only on the income-environmental degradation nexus in the home country and neglects the negative consequences of home consumption spilled out. Controlling for effects of openness to trade, biological capacity, population density, industry share and energy per capita as well as stringency of environmental regulation and environmental regulation enforcement, we detect an EKC-type relationship between per capita income and footprint of domestic production as well as that of import, although the income turning points for import footprint are found to be out of the income range of the sample. Moreover, we find that domestic environmental regulations do not influence country decisions to import environmentally harmful products from abroad; but they do affect domestic production characteristics. Hence, our findings indicate the importance of environmental regulations and provide support for the “Pollution Haven” and “Race-to-the-Bottom” hypotheses.
    Date: 2015–09
  7. By: Michela Faccioli (The James Hutton Institute, Social, Economic and Geographical Sciences Group); Laure Kuhfuss (The James Hutton Institute, Social, Economic and Geographical Sciences Group; University of St. Andrews, Department of Geography and Sustainable Development); Mikołaj Czajkowski (Faculty of Economic Sciences, University of Warsaw)
    Abstract: The outcome of a conservation policy is often subject to uncertainty. In stated preference valuation, there is increasing recognition that uncertainty affects preferences for environmental policies. However, there is also poor understanding regarding people’s perception of uncertainty per se and risk attitude. To shed more light on this, we designed a discrete choice experiment and compared preferences for environmental outcomes under climate change across two split samples, each confronted with a scenario where environmental outcomes are presented as either certain or uncertain (i.e. probabilistically) but displaying the same expected results. We find that, for an equal expected outcome, preferences vary between the certain and the uncertain treatment. These results indicate that risk attitudes impact stated preferences for conservation policies under uncertainty and reinforce the idea that uncertainty should be included in stated preference studies to provide more accurate and policy relevant results. Interestingly, we additionally find that risk attitudes appear to be both context- and individual- specific – the effect of uncertainty depends on the magnitude and direction of change of the environmental good and on individual’s socio-demographic characteristics.
    Keywords: Stated preference valuation; uncertainty; risk attitude; climate change; conservation
    JEL: D6 D81 Q20 Q51 Q54
    Date: 2017
  8. By: Ruiz Pérez, Jeferson Ricardo
    Abstract: This work tries to determine what are the damages and consequences that cause to throw rubbish to the field, vacant land, rivers, lakes and lagoons to the environment by the Nicaraguan homes. Through a proposed econometric model of the Ordinal Probit Multinomial type, it is estimated the probability of Nicaraguan households dumping garbage, for that the data of the Survey of Measurement of the Living Life Level 2014, made by the National Institute of Information Of Development INIDE. Through the hypothesis approach, it has been possible to contrast that Nicaraguan households throw garbage polluting the environment.
    Keywords: Garbage, Environmental Pollution, Climate Change, Degradation, Solid Waste.
    JEL: Q52 Q53 Q54 Q58
    Date: 2017–03–15
  9. By: Ståle Navrud
    Abstract: This paper reviews and discusses existing methodologies for transferring and extrapolating the economic value of health and environmental impacts across chemicals, and identifies challenges with such value transfer and when it can be suitable. The value transfer methodologies describes can be used to estimate the economic benefits of chemical management regulatory frameworks as a whole, as well as in cost-benefit analyses (CBAs) of risk management measures for individual chemicals. For economic valuation of mortality risks from chemicals, the OECD database of Stated Preference (SP) studies of Value of Statistical Life (VSL) , which should be continuously updated with new valuation studies, has a sufficient number of primary studies internationally to conduct value transfer using meta-analytic regressions. However, the empirical evidence on acute and chronic morbidity endpoints, especially concerning all costs components of chronic illnesses, seems to be scarce. The same is true for chemical-related environmental impacts, especially related to ecosystem services, for the multitude of chemicals. Thus, the main methodological and informational challenge for valid value transfer of environmental and health impacts from chemical regulations seems to be new primary valuation studies of morbidity and ecosystem services impacts caused by exposure to (groups of) chemicals. These new primary valuation studies should be designed with value transfer in mind, and cover several countries, in order to extrapolate and generalise the economic values to evaluate international chemical regulations in CBAs. These new primary studies should ideally cover all relevant scales of the impacts, in order to develop generalised adjustment factors for differences in scale of the impacts between the study sites and the policy site. This would improve the spatial transfer of values. The same is true for the combination of Geographical Information System (GIS) data with existing primary studies of impacts at different scales. Furthermore, these new primary studies should be repeated over time in order to provide more information about how values for the relevant impacts change over time; as preferences, scarcity of the public good and the real income of the affected population change. This would improve temporal transfer.
    Keywords: benefit transfer, chemicals regulations, exosystem services, health benefits, value transfer
    JEL: J17 Q51 Q53 Q57
    Date: 2017–03–13
  10. By: Halkos, George; Tsilika, Kyriaki
    Abstract: This study introduces a method of graph computing for Environmental Economics. Different visualization modules are used to reproduce source-receptor air pollution schemes and identify their structure. Data resources are emissions-depositions tables, available online from the European Monitoring and Evaluation Program (EMEP) of the Long-Range Transmission of Air Pollutants in Europe. In network models of pollutants exchange, we quantify the responsibility of polluters by exploring graph measures and metrics. In a second step, we depict the size of the responsibility of EU countries. We create pollution schemes for ranking the blame for the change in pollutants in the extended EMEP area. Our approach considers both the activity and the amount of pollution for each polluter. To go a step further in qualitative analysis of pollution features, we cluster countries in communities, bonded with strong polluting-based relationships. The network framework and pollution pattern visualization in tabular representations is integrated in Mathematica computer software.
    Keywords: Computational data analysis; graph modeling; visual analytics; source-receptor air pollution; polluters’ responsibility.
    JEL: C63 C88 P28 Q51 Q53 Q58
    Date: 2017
  11. By: Ben Jebli, Mehdi; Ben Youssef, Slim
    Abstract: We examine the dynamic relationships between per capita carbon dioxide (CO2) emissions, real gross domestic product (GDP), non-hydroelectric renewable energy (NHRE) consumption, agricultural value added (AVA), and agricultural land (AGRL) use for the case of Argentina over the period 1980-2013 by employing the autoregressive distributed lag (ARDL) bounds approach to cointegration and Granger causality tests. The Wald test confirms the existence of a long-run cointegration between variables. There are long-run bidirectional causalities between all considered variables. The short-run Granger causality suggests bidirectional causality between AVA and agricultural land use; unidirectional causalities running from AGRL to NHRE and from NHRE to AVA. Long-run elasticity estimates suggest that increasing AVA increases GDP and reduces both pollution and NHRE; increasing NHRE reduces AVA and AGRL. Thus it seems that agriculture and renewable energy are substitute activities and compete for land use. We recommend that Argentina should continue to encourage agricultural production. The substitutability between agricultural and non-hydroelectric renewable energy productions, and their competition for agricultural land use, should be at least reduced or even stopped by encouraging R&D in second-generation (or even in third-generation) biofuels production and in new renewable energy technologies more efficient in land use.
    Keywords: Autoregressive distributed lag; Granger causality; non-hydroelectric renewable energy; agricultural value added; agricultural land; Argentina.
    JEL: C32 Q15 Q42 Q54
    Date: 2017–03–13
  12. By: Radoslaw Stefanski (University of St Andrews)
    Abstract: I develop a unique database of international fossil-fuel subsidies by examining country specific patterns in carbon emission-to-GDP ratios, known as emission-intensities. For most - but not all - countries, intensities tend to be hump-shaped with income. I construct a model of structural-transformation that generates this hump-shaped intensity and then show that deviations from this pattern must be driven by distortions to sectoral-productivity and/or fossil-fuel prices. Finally, I use the calibrated-model to measure these distortions for 170 countries for 1980-2010. This methodology reveals that fossil-fuel price-distortions are large, increasing and often hidden. Furthermore, they are major contributors to higher carbon-emissions and lower GDP.
    Keywords: Carbon Subsidies; Subsidies; Fossil Fuels; Pollution; Energy; Energy Intensity; Industrialization; Structural Transformation; Climate Change; Global Warming; Emissions
    JEL: O1 O44 O41 Q53 Q54 H23
    Date: 2017–03–06
  13. By: Fergus Green; Nicholas Stern
    Abstract: As China’s government finalises the country’s 13th Five Year Plan for economic development (2016–2020), this article takes stock of recent changes in China’s economy and energy system since the turn of the century, and looks ahead to the likely trajectory of China’s emissions over the next decade. The period 2000–2013, it is now clear, was a distinct and exceptional phase in China’s developmental history, during which the very high levels of greenhouse gases emitted were linked closely with the energy-intensive, heavy industry-based growth model pursued at that time. China is currently undergoing another major structural transformation — towards a new development model focused on achieving better quality growth that is more sustainable and inclusive — and it is also grappling with economic challenges associated with the transition. Data from 2014 and the first three quarters of 2015 illustrate the extent of these changes. Based on analysis of this data in light of the underlying changes occurring in China’s economy and policy, this article provides an updated forecast of the Kaya components of energy CO2 emissions (GDP, energy/GDP and CO2/energy) over the next decade to 2025. It concludes that China’s CO2 emissions from energy, if they grow at all, are likely to grow much slower than under the old economic model and are likely to peak at some point in the decade before 2025.
    Keywords: Carbon dioxide; China; coal; economy; emissions; energy; GDP
    JEL: N0
    Date: 2016
  14. By: Hans Gersbach (ETH Zurich, Switzerland); Marie-Catherine Riekhof (ETH Zurich, Switzerland)
    Abstract: We introduce an international technology treaty that couples the funding of research for a more advanced abatement technology with an international emissions permit market. Under the treaty, each country decides on the amount of permits for its domestic industries, but a fraction of these permits is auctioned on the permit market, and the revenues are used to scale up license revenues for the innovators of abatement technologies. We discuss the conditions under which such a technology treaty can slow down climate change through technological innovations and whether it creates complementary incentives for countries to tighten permit issuance. Finally, we discuss how participation in Tech Treaties can be fostered and how such treaties might be implemented.
    Keywords: Climate change mitigation, Technology promotion, International permit markets, International treaty, Externalities
    JEL: H23 Q54 O31
    Date: 2017–03
  15. By: Zhu, Xueqin (Environmental Economics and Natural Resources Group, Wageningen University); Yan, Shiyu (Dept. of Business and Management Science, Norwegian School of Economics); Smeets, Edward (Wageningen Economic Research Group, Wageningen University); van Berkum, Siemen (Wageningen Economic Research Group, Wageningen University)
    Abstract: This study proposed a modelling framework which addresses various issues such as decreasing marginal yield of corn with respect to fertilizer use in biofuel production and the resulting greenhouse gas emissions. Particularly, the framework considered exogenous changes including oil price development and biofuel policy through market interactions of different inputs and outputs in biofuel production. We applied the modelling framework numerically in an example of corn ethanol production in the United States to illustrate how the economics of fertilizer use could impact the GHG emissions based on both average and marginal emissions. The results show that higher oil prices increase the prices of gasoline, natural gas, ethanol, and corn, which stimulates corn-based ethanol production and increases corn yields by encouraging profit-maximizing farmers to increase their application rate of nitrogen fertilizers slightly. The effect is that, on average, GHG emissions per unit of produced corn ethanol remain almost constant if oil price increases from 60 to 120 $/barrel. However, the marginal emissions per additional unit of ethanol production increase by 2.2% or10%, depending on whether the Volumetric Ethanol Excise Tax Credit is implemented or not. More important is that the marginal emissions of corn ethanol are much higher than those of conventional gasoline. Although on average there are GHG emission savings of corn ethanol compared to conventional gasoline, the savings are negative when based on the marginal emissions of corn ethanol. An interesting implication is that the effectiveness of biofuel policies aimed at reducing GHG emissions might be questionable.
    Keywords: Oil price; ethanol; corn; nitrogen fertilizer; greenhouse gas emissions; ethanol tax credit
    JEL: Q16 Q42 Q43 Q48
    Date: 2017–02–28
  16. By: Taku Fundira; Giles Henley
    Abstract: Expansion of biofuels production and consumption at the regional and national levels relies on both supportive energy prices and policy interventions. Despite enthusiasm for policy interventions to stimulate biofuel production in Southern African countries in the mid-2000s, the years since have seen a decline in interest due to concerns over environmental and social externalities, and the costs associated with subsidies. This paper reviews the state of the policy, regulation, and narratives around opportunities and challenges for biofuels in each country to assess broader challenges associated with expanding biofuels production and consumption at a regional level.
    Date: 2017
  17. By: Shanjun Li (Cornell University); Chao Wei (George Washington University)
    Abstract: During the recent economic crisis, many countries have adopted stimulus programs designed to achieve two goals: to stimulate economic activity in lagging durable goods sectors and to protect or even enhance environmental quality. The environmental bene ts are often viewed and much advocated as co-bene ts of economic stimulus. This paper investigates the potential tradeo between the stimulus and environmental objectives in the context of the popular U.S. Cash-for-Clunkers (CFC) program by developing and estimating a dynamic discrete choice model of vehicle ownership. Results from counterfactual analysis show that design elements to achieve environmental bene ts could signi cantly limit the program impact on demand stimulus: the cost of demand stimulus after netting out environmental bene ts under the program could be 43 percent higher in terms of vehicle sales and 38 percent higher in terms of consumer spending than that from alternative policy designs without explicitly aiming at the environmental objective.
    Keywords: Stimulus, Discrete Choice Model, Vehicle Scrappage
    JEL: E62 H23 H31
    Date: 2016
  18. By: Galbreath, Jeremy
    Abstract: Employing resource-based perspectives of the firm as a theoretical foundation, this article empirically examines the relationship between women in two different types of leadership roles and environmentally sustainable firms. I study an unbalanced panel data set of 2,006 wine firms in Australia for the period 2007–2014. The results suggests that when accounting for their individual, independent effects, women in technical leadership roles are positively associated with environmental sustainability, while women in professional leadership roles are not. However, the potential complementarities of women in both roles are explored, their interactive, co-joint (complementary) effect explains significantly more variance in the environmental sustainability variable than their individual effects. The results are discussed along with limitations and directions for future research.
    Keywords: Agribusiness, Production Economics,
    Date: 2017–01
  19. By: Ahlheim, Michael; Frör, Oliver; Nguyen Minh Duc; Rehl, Antonia; Siepmann, Ute; Pham Van Dinh
    Abstract: In Stated Preference studies for the appraisal of environmental projects in poor countries or regions it often turns out that the stated willingness to pay of people for environmental improvements, which is used as measure of individual welfare changes, is very low. This is often interpreted as the result of extremely tight budget constraints, which make it impossible that people express their true appreciation of an environmental project in terms of their willingness to pay for it. Therefore, it is sometimes suggested to use labour contributions instead of money as a numeraire to measure utility in such studies. In this paper we show theoretically and empirically that this suggestion is not compatible with the principles of welfare theory because of several inconsistencies. We also illustrate the validity of our arguments empirically based on the results of a Contingent Valuation study conducted in a rural area in northern Vietnam.
    Keywords: Contingent Valuation,Cost-benefit Analysis,Developing Countries,Public Expenditures,Vietnam,Willingness to work
    JEL: D61 H43 Q51
    Date: 2017
  20. By: Helena Ting; Martina Bozzola; Timothy Swanson
    Abstract: In countries where rain-fed agriculture constitutes a significant portion of household livelihood, increased weather variability represents a source of vulnerability to stable consumption, food security and household well-being. Weather induced income changes affect household consumption and saving decisions. We evaluate saving and consumption responses to weather variation in South Africa, leveraging a newly available panel of nationally representative households covering the period from 2008 to 2014 and long term climate data. We test our data against predictions of the standard rational consumption model and some of its main extensions (i.e., precautionary saving and myopic consumption), and compare differences among households engaged in agriculture activities versus those that do not. Furthermore, we evaluate the impact of saving on household life satisfaction and health behavior. In accordance with previous literature, we find that households save in response to both transitory and permanent income change, although the proportion saved from transitory income is significantly higher. We find signs of precautionary saving driven by non-agriculture households, while we find stronger evidences of myopic consumption for agriculture households. In addition, we show that a one-unit increase in log-saving from transitory income increases the odds of a unit increase in self-reported life satisfaction of the household head by 14%, and a one unit increase in log-saving from permanent income leads to a 6% increase in hazard ratio of having taken an HIV test. This latter result may indicate that preventative health behavior such as HIV testing requires a stronger inducement than a transitory injection of income. Further research is needed to identify the mechanisms by which saving affect life satisfaction and health seeking behavior in developing countries.
    Keywords: consumption and saving; health behavior; agriculture; climate; Africa; South Africa.
    JEL: D14 I14 Q12 Q56
    Date: 2017–02–02
  21. By: Morana, Claudio; Sbrana, Giacomo
    Abstract: The paper investigates the linkages between temperature anomalies, radiative forcing and ENSO. By means of a new flexible trend modeling approach, we uncover a nonlinear linkage between radiative forcing and global temperature anomalies. The nonlinear trend closely tracks the low frequency evolution in temperature anomalies, also accounting for the mid-end 1990s level switch, the 1998-2013 "warming hiatus" and the current steepening in trend temperatures. Radiative forcing is also found to account for trend dynamics in the Southern Oscillation Index (SOI), therefore providing support for the view that global warming might affect natural variability oscillations such as ENSO, and therefore enhance their disruptive effects. We also document the feature of time-varying volatility of temperature anomalies and SOI, which is well described by an IGARCH process. By means of a new dynamic conditional correlation model (SP-DCC), we finally document the presence of time-varying conditional correlations relating temperature anomalies across various zones and SOI. The correlation pattern is found to be consistent with the effects of ENSO events in the Tropics and their teleconnections.
    Keywords: Temperature Anomaly, Global Warming, Warming Hiatus, Radiative Forcing, ENSO, El Niño, Conditional Heteroskedasticity, Semiparametric Dynamic Conditional Correlation Model, Research Methods/ Statistical Methods, C32,
    Date: 2017–03–03
  22. By: Rajna Gibson (University of Geneva and Swiss Finance Institute); Philipp Krueger (University of Geneva and Swiss Finance Institute)
    Abstract: Institutional investors are the single most important class of shareholders in stock markets. Yet, knowledge about their motivations for embedding environmental and social — or more generally — sustainability considerations in their portfolio allocations is at best emerging. In this paper, we propose a novel approach to measure the environmental, social, and aggregate sustainability footprint at the institutional investor portfolio-level. We provide evidence that institutional investors with longer investment horizons — as measured by investors’ legal type or portfolio turnover — exhibit significantly better sustainability footprints. We also document that institutional investors with better sustainability footprints generate higher risk-adjusted performance, primarily through a reduction of portfolio risk. Overall, our results are consistent with the view that institutional investors choose sustainability oriented portfolio allocations with the objective of long-term value maximization.
    Keywords: Investment horizon, Institutional investors, sustainability footprint, portfolio turnover, risk-adjusted performance, CSR, ESG impact, SRI, sustainable investing, impact investing, environmental footprint, social footprint
    JEL: G20 G23 G30 M14 Q01 Q50
    Date: 2017–02
  23. By: Carrara, Samuel; Longden, Thomas
    Abstract: This paper describes changes to the modelling of the transport sector in the WITCH (World Induced Technical Change Hybrid) model to incorporate road freight and account for the intensity of freight with respect to GDP. Modelling freight demand based on the intensity of freight with respect to GDP allows for a focus on the importance of road freight with respect to the cost-effective achievement of climate policy targets. These climate policy targets are explored using different GDP pathways between 2005 and 2100, which are sourced from the Shared Socioeconomic Pathways (SSPs) database. Our modelling shows that the decarbonisation of the freight sector tends to occur in the second part of the century and the sector decarbonises by a lower extent than the rest of the economy. Decarbonising road freight on a global scale remains a challenge even when notable progress in biofuels and electric vehicles has been accounted for.
    Keywords: Road Freight, Transport, Climate Mitigation, Integrated Assessment Models, Environmental Economics and Policy, Q54, Q58, R41,
    Date: 2017–03–03
  24. By: Xavier GALIEGUE
    Date: 2017
  25. By: Paul C. Samboko; Mitelo Subakanya; Cliff Dlamini
    Abstract: The need for energy security and climate change mitigation have increased blending mandates worldwide; in Southern Africa, demand for biofuels could increase following South Africa’s planned blending mandates. However, land constraints limit local industry expansion, with demand likely to be met in land-abundant countries. This paper reviews the status of the biofuels industry in Zambia, as a land-abundant country, for the local and wider Southern African market. It identifies potential biofuel feedstocks as crucial elements for establishing a viable industry. Identified potential bioethanol feedstocks include sugarcane, cassava, sweet sorghum, and maize; for biodiesel, soya beans, sunflower, and groundnuts are the likely feedstocks of choice. However, current production levels are inadequate to meet growing regional biofuels demand, but there is scope for expansion if productivity and production can be increased. Presently, there is no commercial biofuel production, but a fairly adequate policy, regulatory, legal, and institutional framework exists.
    Date: 2017
  26. By: Petropoulos, G.; Willems, Bert
    Abstract: Coordinating the timing of new production facilities is one of the challenges of liberalized power sectors. It is complicated by the presence of transmission bottlenecks, oligopolistic competition and the unknown prospects of low-carbon technologies. We build a model encompassing a late and early investment stage, an existing dirty (brown) and a future clean (green) technology and a single transmission bottleneck, and compare dynamic efficiency of several market designs. Allocating network access on a short-term competitive basis distorts investment decisions, as brown firms will preempt green competitors by investing early. Dynamic efficiency is restored with long-term transmission rights that can be traded on a secondary market. We show that dynamic efficiency does not require the existence of physical rights for accessing the transmission line, but financial rights on receiving the scarcity revenues generated by the transmission line suffice.
    Keywords: network access, congestion management, renewable energy sources, power markets
    JEL: C72 D43 L13 L94
    Date: 2017–02
  27. By: Paul E. Carrillo (George Washington University); Andrea Lopez (George Washington University); Arun Malik (George Washington University)
    Keywords: Crime, Difference-in-Differences, Regression Discontinuity, Crime displace- ment
    JEL: C20 Q52 R28 R48
    Date: 2016
  28. By: Weihsueh A. Chiu (Texas A&M University)
    Abstract: The purpose of this working paper is to review existing chemical risk assessment methods in the context of supporting socio-economic cost-benefit analysis, focusing on more “typical” risk assessments that may not have strong epidemiologic data and/or were not originally designed to support socio-economic analyses. A number of case studies of such “typical” chemical risk assessments were reviewed with respect to their suitability for supporting socio-economic analyses.
    Keywords: causal inference, cost-benefit analysis, dose-response, environmental policy, population health, risk assessment, uncertainty, viarability
    JEL: I18 Q51 Q53 Q57 Q58
    Date: 2017–03–14
  29. By: Frederik G Toscani
    Abstract: This paper studies the impact of natural resource extraction in Latin America and the Caribbean (LAC) from a number of angles. First, we exploit a novel dataset on the universe of giant oil and gas discoveries in the region to trace out the cyclical response of macroeconomic variables to discoveries over the short- and medium-run. Second, we use non-stationary panel data techniques to look at the long-run (trend) relationship between GDP per capita and the value of oil and gas production—our results imply that the recent fall in prices could depress GDP per capita by several percentage points. Last, we use Bolivia, which discovered huge gas reserves in the late 1990s, as a case study to apply the cross-country results and to study the impact of discoveries at the subnational level.
    Keywords: Natural resources;Bolivia;Latin America;Caribbean;Oil;Natural gas;Natural Resources, Discoveries, Economic Growth, Poverty
    Date: 2017–02–10
  30. By: L. Lambertini
    Abstract: A well established dynamic model describing the impact of oligopolistic interaction on a renewable resource is revisited here to illustrate its dual interpretation as a waste removal differential game. The regulatory implications are illustrated by assuming that the public agency may control market price and possibly also access to the commons. Two different formulations of the managerial or CSR objective are envisaged, based on a combination of profits and either output or the individual share of the waste stock. It is shown that if the representative firm’s objective includes the residual waste stock, there exists a unique regulated price driving to zero the steady state stock itself. Hence, the present analysis delivers some useful indications concerning an appropriate definition of the CSR objective firms should adopt.
    JEL: C73 L13 Q20 Q53
    Date: 2017–03
  31. By: Pietzcker, Robert C.; Ueckerdt, Falko; Carrara, Samuel; de Boer, Harmen Sytze; Després, Jacques; Fujimori, Shinichiro; Johnson, Nils; Kitous, Alban; Scholz, Yvonne; Sullivan, Patrick; Luderer, Gunnar
    Abstract: Mitigation-Process Integrated Assessment Models (MP-IAMs) are used to analyze long-term transformation pathways of the energy system required to achieve stringent climate change mitigation targets. Due to their substantial temporal and spatial aggregation, IAMs cannot explicitly represent all detailed challenges of integrating the variable renewable energies (VRE) wind and solar in power systems, but rather rely on parameterized modeling approaches. In the ADVANCE project, six international modeling teams have developed new approaches to improve the representation of power sector dynamics and VRE integration in IAMs. In this study, we qualitatively and quantitatively evaluate the last years’ modeling progress and study the impact of VRE integration modeling on VRE deployment in IAM scenarios. For a comprehensive and transparent qualitative evaluation, we first develop a framework of 18 features of power sector dynamics and VRE integration. We then apply this framework to the newly-developed modeling approaches to derive a detailed map of strengths and limitations of the different approaches. For the quantitative evaluation, we compare the IAMs to the detailed hourly-resolution power sector model REMIX. We find that the new modeling approaches manage to represent a large number of features of the power sector, and the numerical results are in reasonable agreement with those derived from the detailed power sector model. Updating the power sector representation and the cost and resources of wind and solar substantially increased wind and solar shares across models: Under a carbon price of 30$/tCO2 in 2020 (increasing by 5% per year), the model-average cost-minimizing VRE share over the period 2050-2100 is 62% of electricity generation, 24%-points higher than with the old model version.
    Keywords: Integrated Assessment Models (IAM), Variable Renewable Energy (VRE), Wind and Solar Power, System Integration, Power Sector Model, Flexibility Options (Storage, Transmission Grid, Demand Response), Model Evaluation, Model Validation, Resource /Energy Economics and Policy, C6, C61, Q40, Q42, Q47, Q49,
    Date: 2017–03–03
  32. By: Xun X. Liu; Serge Hiligsmann; Gourdon; Rémy R. Bayard
    Abstract: Fungal pretreatment by Ceriporiopsis subvermispora of two forest residues (hazel and acacia branches) and two agricultural lignocellulosic residues (barley straw and sugarcane bagasse) were studied as a pretreatment to improve their subsequent anaerobic digestion for methane production. Biomass samples were grinded to 2 ranges of particle sizes (
    Keywords: Biomethane potential; Ceriporiopsis subvermispora; Enzymatic hydrolysis; Fungal pretreatment; Lignocellulosic biomass; White-rot fungi
    Date: 2017–05
  33. By: Lars Lindholt; Solveig Glomsrød (Statistics Norway)
    Abstract: This paper examines to what extent downscaling of global coal based electricity generation encourages gas demand and affects regional activity in gas production, with emphasis on the arctic regions. In our reference scenario up to 2050 we take into consideration that renewables is set to increase its contribution to global electricity production over time, while coal will contribute less. We find that a policy scenario with further phasing out of coal and phasing in of renewables in line with the 2 degrees scenario for the power sector up to 2050, will lead to reduced arctic gas production compared to the reference scenario, although total worldwide electricity production doubles over the same period. However, even in a situation with less resources and higher costs in the Arctic, future investments in new reserves in the region are still profitable in our policy scenario, as total arctic gas production then is only marginally lower in 2050 than today.
    Keywords: Arctic; Coal market; Gas market; Electricity market; Equilibrium model
    JEL: Q31 Q41 Q58
    Date: 2017–03
  34. By: Suchita Srinivasan
    Abstract: The objective of this paper is to evaluate the effectiveness of different policies in facilitating the diffusion of green innovations through trade. Focusing on developing countries, this paper develop analyses the effectiveness of policies such as information, subsidies, and banning the use of the incumbent technology in encouraging the use of a clean technology. The empirical model uses a novel dataset of a sample of 72 low and middle-income countries, spanning the period 1993- 2013 to evaluate the effectiveness of these policies, and analyse the determinants of policy choice. Results suggest that domestic policies pay a pivotal role in facilitating the transfer of CFL, especially subsidies; however, simultaneous implementation of policies need not necessarily be effective. Moreover, countries learn from the experiences of other countries in deciding whether to implement a particular policy. Results also suggest a role for trade policy instruments, such as trade agreements with top exporters, to facilitate clean technology diffusion.
    Keywords: Technology Diffusion; Policy Effectiveness; International Trade.
    JEL: D78 D83 F13 H30 O33 O38 Q48
    Date: 2016–07–31
  35. By: Schreiber, Sven
    Abstract: While recurring and regular variations of weather conditions are implicitly addressed by standard seasonal adjustment procedures of economic time series, extraordinary weather outcomes are not. We propose a way of measuring aggregate abnormal weather conditions based on available local measurements and a straightforward regression-based framework to analyze their impact on German monthly total industrial and construction-sector production data, and find noticeable effects. In the historical - and seasonally adjusted - construction sector growth data the extra explanatory power of the weather regressors over a benchmark univariate autoregressive model even exceeds 50% of the variation. The estimated effects of weather deviations can be subtracted from the already seasonally adjusted data to obtain (seasonally as well as) weather adjusted series, which might capture economic developments better. The estimated adjustments are quantitatively relevant also for aggregate output (GDP).
    Keywords: weather,business cycle,nowcasting
    JEL: E32 E27
    Date: 2017

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