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on Environmental Economics |
| By: | Minh Ha-Duong (CleanED - Clean Energy and Sustainable Development Lab - USTH - University of sciences and technologies of hanoi, CIRED - Centre International de Recherche sur l'Environnement et le Développement - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique); An Truong (CleanED - Clean Energy and Sustainable Development Lab - USTH - University of sciences and technologies of hanoi); Hong Nam Nguyen (CleanED - Clean Energy and Sustainable Development Lab - USTH - University of sciences and technologies of hanoi); Hoang Anh Nguyen Trinh (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, CleanED - Clean Energy and Sustainable Development Lab - USTH - University of sciences and technologies of hanoi) |
| Abstract: | This report shows the impacts of coal mining and coal-based electricity generation on the Vietnamese society and environment. Five impacts categories were examined: water, air and soil pollution, local people’s livelihood and health. We studied impacts now and extrapolated according to Vietnam’s current Power Development Plan –namely PDP VII revised– which prescribes to expand the coal-fired power capacity from about 10 GW today in 2015 to 55 GW by 2030. Results show that coal mining and coal-based electricity generation have high, unsustainable, local impacts. Our studies found that levels of dust in the air systematically exceeded the legal safe standards. So did the level of heavy metals and other toxic pollutants in the water we studied. We observed resettlement issues which were not solved appropriately, and local job creation promises which were not followed up in action. We assess that by 2030, Vietnam’s coal power plants would create 30 million tonnes of coal ash to be disposed. We estimate that the PDP VII entails importing at least 50 million tonnes of coal per year in 2030. This would compromise energy independence, creating national security risks. We argue further that a fivefold expansion of coal power generation capacity is incompatible with the humanity’s goal of stabilizing climate change below 2°C of global warming. In conclusion, we propose engineering and public policy recommendations towards the green growth strategy of Vietnam, which would better integrate the country in the world’s energy transition towards a low carbon society. |
| Keywords: | vietnam, impact, charbon |
| Date: | 2016–06–30 |
| URL: | http://d.repec.org/n?u=RePEc:hal:ciredw:hal-01441680&r=env |
| By: | Bai-Chen Xie (College of Management and Economics and APEC Sustainable Energy Center, Tianjin University); Jie Gao (College of Management and Economics, Tianjin University); Shuang Zhang (College of Management and Economics and APEC Sustainable Energy Center, Tianjin University); ZhongXiang Zhang (College of Management and Economics and China Academy of Energy, Environmental and Industrial Economics, Tianjin University) |
| Abstract: | China’s unbundling reform in 2002 aimed to introduce competitiveness into the power industry, especially the generation sector, to improve its operational efficiency. Meanwhile, great concern about a range of environmental problems and global climate change increasingly calls for saving energy and abating emissions. Thus, the ability to balance the reduction of carbon emissions with economic benefits may to a great extent determine the competitiveness of power generation sector. This study first adopts the game cross-efficiency approach to evaluate the environmental efficiency of the generation sectors in China’s 30 provinces. It then employs a system generalized method of moments model to explore the determinants of their performance while eliminating the associated endogeneity problem. The results of this first study combining the two methods indicate that efficiency gaps do exist among the regions even though overall efficiency has been improved. Despite the negative correlation between environmental efficiency and the thermal power ratio, the power mix should be adjusted gradually. The average firm size and capacity utilization rates are positive factors boosting the environmental efficiency. The incentive policies for clean energy development should be differentiated across regions according to their power mix and self-sufficiency ratio. |
| Keywords: | Game Cross-efficiency, Data Envelopment Analysis, Generalized Method of Moments, Power Industry, Environmental Efficiency, China |
| JEL: | Q54 Q55 Q58 Q43 Q48 O13 O44 R11 |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2017.12&r=env |
| By: | Lukáš Rečka; Milan Ščasný |
| Abstract: | What is the optimal strategy for the Czech energy sector: Stay by brown coal dominance, build new nuclear power reactors or increase the share of natural gas and renewables? Will it be profitable to build two new nuclear reactors and to open new brown mines with parallel investments into current and new brown coal power and CHP plants at the same time? We try to find the answer to these highly topical questions. A public tender process for contractors to build two new nuclear reactors was cancelled in its final stage in April 2014. But there is a plan to open new tender in 2016. At the same time, public and political discussion about opening new brown coal mines is back in the game. This is all occurring in a situation when power market prices are at their long term minimum. Monthly average baseload power prices are in a downward trend since 2012 August and since the second quarter of 2013 they have been fluctuating slightly above the level of 30 €/MW. Neither increasingly important role of renewables in the power mixes of many European countries nor the low carbon prices bring incentives for significant rise of the power price in the near future. In the Central and Eastern Europe and in the Czech Republic as well, only a few partial equilibrium or CGE models with special focus on energy sector have been applied so far (Rečka & Ščasný, 2013, Ščasný, et al., 2009), therefore we construct partial equilibrium, Czech energy model in TIMES model generator (Filar & Haurie, 2010) taking into account externalities from emitting classical air pollutants and CO2 during heat and power generation. We quantify the externalities using so called ExternE method (see for instance Weinzettel et al., 2012) and incorporate their monetary values into the model objective function. We assess several policy and market development scenarios to bring more light into the strategic decision making about new energy sources in the Czech Republic. We use TIMES model generator (Filar & Haurie, 2010) to construct partial equilibrium model of Czech energy sector with detail technological structure. We quantify the externalities from emitting classical air pollutants and CO2 during heat and power generation using the so called ExternE method (see for instance Weinzettel et al., 2012) and incorporate them into the model objective function. This approach allows us to internalise the externalities from heat and power generation. The model includes the interconnection with and the import and export of electricity is an endogenous variable depending on power spot market price. In our scenarios, we focus on remaining brown coal reserves in currently operating mines and brown coal reserves available only after opening new coalmines that has been prohibited by a government resolution since 1991. Allowing or not allowing construction of two new nuclear reactors is second important dimension for our scenarios (It is more or less political decision because the government owns the majority in the largest power company in the Czech Republic that is supposed to build the new nuclear reactors.). We take into account the new 2030 framework for climate and energy policies agreed on 23 October 2014 by the EU leaders. Last set of important scenario parameters includes subsidy for renewable energy sources, fuels and carbon prices development. We compare our baseline scenario assuming current and ongoing environmental regulation and no restriction on new nuclear power plants with scenarios assuming introduction of proposed environmental regulation; relaxing the prohibition of opening new brown coalmines; and continuation of new renewable energy sources subsidizing. A special scenario reacts on a possible threat of the natural gas deliveries from Russia via Ukraine. We provide a sensitivity analysis on European power, fuels and carbon prices for all scenarios.The preliminary results show that: 1) The price of CO2 allowances is the main factor for decision about installation of new nuclear power plant. From €20 per ton of CO2 it is reasonable to build new nuclear power plant 2) It is not necessary to open new brown coal mines to satisfy the Czech’s power demand even without the construction of new nuclear reactors. However, it will be highly recommended to introduce regulatory measures on the usage of the brown coal from the operating brown coal mines to avoid destabilization of district heating sector if no new coal mines open; 3) Future advanced renewable technologies (mainly wind and biomass) will be competitive without any submissions. The final results will provide projection of emissions and optimal fuel mix and technology portfolio under the assumptions defined in each scenario. Based on these results and sensitivity analysis, we will provide a policy recommendation for optimal energy policy of the Czech Republic. |
| Keywords: | The Czech Republic and its interconnection with neighbouring countries., Forecasting and projection methods, Energy and environmental policy |
| Date: | 2015–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:008007:8510&r=env |
| By: | Jean-Philippe Denruyter (WWF - Fonds mondial pour la nature); Thu Trang Nguyen (VSEA - Vietnam Sustainable Energy Alliance); Thanh Binh Hoang (VSEA - Vietnam Sustainable Energy Alliance); Lee Poston (VSEA - Vietnam Sustainable Energy Alliance); Kelsey Hartman (VSEA - Vietnam Sustainable Energy Alliance); Shoon So Oo (VSEA - Vietnam Sustainable Energy Alliance); Aung Myint (VSEA - Vietnam Sustainable Energy Alliance); David Allan (VSEA - Vietnam Sustainable Energy Alliance); Pierre-Marc Blanchet (VSEA - Vietnam Sustainable Energy Alliance); Richard De Ferranti (VSEA - Vietnam Sustainable Energy Alliance); John Mcginley (VSEA - Vietnam Sustainable Energy Alliance); Cam Nhung Pham (VSEA - Vietnam Sustainable Energy Alliance); Khanh Nguy Thi (VSEA - Vietnam Sustainable Energy Alliance); Decharut Sukkumnoed (VSEA - Vietnam Sustainable Energy Alliance); Trine Glue Doan (VSEA - Vietnam Sustainable Energy Alliance); Hoang Anh Nguyen Trinh (CleanED - Clean Energy and Sustainable Development Lab - USTH - University of sciences and technologies of hanoi); Minh Ha-Duong (CleanED - Clean Energy and Sustainable Development Lab - USTH - University of sciences and technologies of hanoi, CIRED - Centre International de Recherche sur l'Environnement et le Développement - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique); Hai Long Nguyen (GreenID - Trung tâm Phát triển Sáng tạo Xanh, VSEA - Vietnam Sustainable Energy Alliance); Hoai-Son Nguyen (CleanED - Clean Energy and Sustainable Development Lab - USTH - University of sciences and technologies of hanoi, CIRED - Centre International de Recherche sur l'Environnement et le Développement - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Although electricity from renewable resources, primarily from hydro energy, has been increasing in Vietnam in the last two decades, fossil fuel-based electricity still dominates the power generation system in the country. The share of power generation capacity from coal and gas was nearly 54% in 2015 . This share is expected to further increase in the coming years based on the official power development plan of Vietnam, despite Vietnamese fossil energy resources being scarce, with its oil and gas reserves likely to be depleted in the few decades to come . Hence, a necessary question is: could Vietnam be successful in achieving a low carbon power system and pursue a low carbon economy in the next few decades? Or will the country continue its dependence on fossil fuels? The Intelligent Energy Systems Pty Ltd (“IES”) and Mekong Economics (“MKE”) were commissioned by WWF – Greater Mekong Programme Office (“WWF-GMPO”) to undertake a project called “Power Sector Vision: Alternatives for power generation in the Greater Mekong Sub-region”. This was to develop scenarios for the power sector of countries in the Greater Mekong Sub-region (GMS) that are in line with WWF’s Global Energy Vision that outlines a 100% renewable energy supply by 2050. The objectives of WWF’s energy vision are: (i) contribute to reduction of global greenhouse emissions (reduction by >80% based on1990 levels by 2050); (ii) reduce dependency on unsustainable hydro and nuclear power; (iii) enhance energy access; (iv) take advantage of new technologies and solutions; (v) enhance power sector planning frameworks: multi-stakeholder participatory process; and (vi) develop enhancements for energy policy frameworks. The purpose of Power Sector Vision report is to provide detailed country-level descriptions of three scenarios for the power sector of the Socialist Republic of Viet Nam (Viet Nam): • Business as Usual (BAU) power generation development path which is based on current power planning practices, current policy objectives. • Sustainable Energy Sector (SES) scenario, where measures are taken to maximally deploy renewable energy and energy efficiency measures to achieve a near-100% renewable energy power sector; and • Advanced Sustainable Energy Sector (ASES) scenario, which assumes a more rapid advancement and deployment of new and renewable technologies as compared to the SES. The scenarios were based on public data, independent assessments of resource potentials, information obtained from published reports and power system modelling of the GMS region for the period 2015 to 2050. |
| Keywords: | électricité, scénarios, Vietnam |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:hal:ciredw:hal-01441737&r=env |
| By: | Maria Carmela Aprile; Damiano Fiorillo (-) |
| Abstract: | Water conservation represents one important pro-environmental behavior for a sustainable environment. This paper investigates the link between water conservation behavior and general environmental concerns using a large dataset as the1998 wave of Multipurpose Household Survey conducted annually by the Italian Central Statistical Office. Univariate probit models show that pollution and resource exhaustion are positively related to individual water conservation behavior while alteration of environmental heritage exhibits a negative relationship with water saving behavior. These findings are robust to the inclusion of environment knowledge and social capital variables. The robustness analysis also indicates that television and radio, participation to environmental initiatives, money for environmental protection and churchgoing are significant determinants of water conservation behavior. |
| Keywords: | Water conservation, environmental concerns, socio and economic characteristics, environmental knowledge, social capital, Italy |
| JEL: | Q25 Q50 C21 C25 Z00 |
| Date: | 2016–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:crj:dpaper:6_2016&r=env |
| By: | Dennis Dlugosch (OECD); Tomasz Kozluk (OECD) |
| Abstract: | The 2°C (or less) limit on global warming agreed at the UN Climate Change Conference of 2015 in Paris effectively implies that manufacturing industries in developed countries have to undertake significant investments, in particular in more energy efficient production technology. To implement policies making the most of such a change, policymakers need to know what consequences climate policies have on business investment. This paper sheds light on the relationship between environmental policies, energy prices and firm-level investment using a sample of listed firms over the period 1995-2011 in 30 OECD economies. Higher energy price inflation is associated with a small, but statistically significant decrease in total investment across firms, though in the most energy intensive sectors, total investments are actually found to increase. However, for domestic investment, effects of higher energy price inflation are negative, independent of the energy intensity of industries. The gap in reactions between total and domestic investment is likely driven by increased offshoring in response to higher energy price inflation, in line with the Pollution Haven Hypothesis. We also find tentative evidence that the negative effects of rising energy prices on investment can be largely attributed to tightening upstream environmental policies. |
| Keywords: | energy prices, environmental policies, investment |
| JEL: | E22 Q41 Q58 |
| Date: | 2017–03–23 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1378-en&r=env |
| By: | William D. Nordhaus (Cowles Foundation, Yale University) |
| Abstract: | Many areas of the natural and social sciences involve complex systems that link together multiple sectors. Integrated assessment models (IAMs) are approaches that integrate knowledge from two or more domains into a single framework, and these are particularly important for climate change. One of the earliest IAMs for climate change was the DICE/RICE family of models, first published in Nordhaus (1992), with the latest version in Nordhaus (2017, 2017a). A difficulty in assessing IAMs is the inability to use standard statistical tests because of the lack of a probabilistic structure. In the absence of statistical tests, the present study examines the extent of revisions of the DICE model over its quarter-century history. The study find that the major revisions have come primarily from the economic aspects of the model, whereas the environmental changes have been much smaller. Particularly sharp revisions have occurred for global output, damages, and the social cost of carbon. These results indicate that the economic projections are the least precise parts of IAMs and deserve much greater study than has been the case up to now, especially careful studies of long-run economic growth (to 2100 and beyond). |
| Keywords: | Climate change, Integrated assessment models, DICE model, Revisions |
| JEL: | Q5 Q54 H4 |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:cwl:cwldpp:2084&r=env |
| By: | Grégoire Garsous (OECD); Tomasz Kozluk (OECD) |
| Abstract: | Business has often been arguing against the introduction of a carbon tax because it would induce a pollution haven effect – reducing the competitiveness of domestic production and shifting both production and emissions to countries where fossil fuels are cheaper. In this paper, we shed light on such claims by estimating the effect of energy prices on one of the possible channels of the pollution haven effect - foreign direct investment (FDI). Using data for listed firms in 23 OECD countries, we find that the effect of higher domestic energy prices on firms’ outward stock of FDI has been significant and positive, but small in magnitude. This effect seems driven by more permanent shocks to energy prices, in particular by those coming from more stringent upstream environmental policies. |
| Keywords: | energy prices, environmental policies, FDI, pollution haven |
| JEL: | F21 Q41 Q58 |
| Date: | 2017–03–23 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1379-en&r=env |
| By: | Carillo, B.; Branco, D.; Trujillo, J.; Lima, J.; |
| Abstract: | The burning of forest releases a wide range of contaminants, some of which are known to be hazardous for health. Traditional estimates of the costs of deforestation rarely incorporate the health effects of pollution generated by deforestation. This paper provides the first estimates of the local externalities of deforestation in infant health. Our approach exploits a conservation policy that generated a sharp drop in deforestation across municipalities in the Brazilian Amazon. The core findings are that deforestation control policy led to reductions in the incidence of very low birth weight and extreme prematurity, especially for boys. Collectively, these findings provide additional justification for controlling deforestation. |
| Keywords: | Deforestation; Environmental Quality; Conservation Policy; Infant Health; Brazil |
| JEL: | I12 K32 Q51 |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:yor:hectdg:17/09&r=env |
| By: | Milan Scasny; Milan Scasny; Iva Zverinova; Mikolaj Czajkowski |
| Abstract: | Low-carbon vehicles due to their relatively lower fuel intensity directly affect CO2 emissions and are thus technologic solutions that may mitigate climate change. Electric vehicles and hybrid electric vehicles can be a component of a smart grid and thus could help to accommodate more electricity from renewable energy in the grid. Overall effect on GHG and local air pollutants of course will depend on fuel mix used to generate electricity. Alternative fuel vehicles (AFVs) are usually more expensive than conventional cars. Besides the purchase costs, other characteristics of vehicles are also important for a car driver. The purpose of this study is to contribute to the literature that have examined individual preferences for various characteristics of passenger vehicles, including passenger vehicles with very small market share or which recently do not appear at the market. With the onset of alternative fuel vehicles on the market, large amount of studies focusing on consumer preferences of AFVs have been already conducted worldwide. Consumers’ demand for vehicle described with several specific characteristics can be modelled using existing data on market penetration or consumption decisions, i.e. through analysis of revealed preferences. However, if the supply of certain durable goods is constraint or almost zero as is the case for new device or not yet existing technology, potential demand can be examined using stated preferences technique. In our case, the main aim of this survey is to review individual traveller’s preferences for passenger vehicle, specifically for a vehicle that is recently characterized by negligible market penetration. In other words, the stated preferences, as elicited via a stated preference surveys, for the demand for cars with alternative drive technologies are examined. There are several stated preference studies on consumers’ preferences for the uptake of alternative fuel vehicles. However, our study is the first of this kind that has ever been conducted in a post-transition CEE country, in Poland. We surveyed 2,600 individuals in order to elicit preferences for the passenger AFV technologies. We specifically examine individual preferences for three types of alternative technologies (hybrid vehicle - HV, plug-in electric vehicle - PHEV, and electric vehicle - EV) and a conventional car that vary in technology characteristics (driving range, refuelling/recharging time), policy incentives (free parking, public transportation, and availability of fast mode infrastructure) and costs (purchase price, operational and fuel cost), following partly a design by Hoen and Koetse (2012). Our sampling allows us to analyse the preferences for segment of new car buyers as well as buyers of second-hand cars that dominates passenger vehicle market in Poland. Individual preferences are elicited by using the labelled discrete choice experiments (Hensher, Rose, Greene, 2005; Carson and Louviere, 2011). The choice cards include always four technology-specific alternatives and we ask to choose the best option eight times. The choice sets are based on efficient design with the priors estimated from the pilot study (N=400). Our econometric model is based on a random utility framework. We assume that respondents chose a vehicle alternative if their willingness to pay for such vehicle is greater than the cost of this alternative. The corresponding indirect utility function is additive in vehicle’s characteristics and costs. We assume that the random component is an independent and identically distributed type I extreme value error term with a scale parameter equal to 1. It implies that the statistical model of the responses is a conditional logit that is linear in the parameters, and the probability is the contribution to the likelihood of the conditional logit model. In order to analyse preference heterogeneity, we allow controlling for the effect of socio-demographics or other respondent-specific indicators, and also estimate random parameter (mixed) logit.We reveal that the Polish consumers have the lowest preference for hybrid cars, followed then by PHEVs and EVs. In general, we found similar preferences among Polish respondents as found elsewhere in the literature. Driving range and recharging time are quite important attributes of a car which Polish consumers intend to buy. On average, Polish drivers are willing to pay about 3,000 zł for each 100 kms of driving range, and the drivers who intend to buy a second-hand car value the driving range less (about 2,000 zł) than respondents who intend to buy a new car (5,000 zł). As expected, the coefficient on recharging time is negative and significant; on average, Polish drivers are willing to pay slightly less than 1,000 zł for each hour saved for recharging. Again, the new car buyers are willing to pay more than the second-hand car buyers. Their willingness to pay (WTP) for availability of fast mode recharging infrastructure is almost one order of magnitude larger than their WTP for reducing the recharging time by one hour. Providing other benefits, such as free parking and public transport, increases the probability to choose the AFVs. References: Carson, R. T., Louviere, J. J. (2011). A Common Nomenclature for Stated Preference Elicitation Approaches. Environmental and Resource Economics, 49(4), 539–559. doi:10.1007/s10640-010-9450-x Hensher, D., Rose, J.M., Greene, W.H. (2005). Applied Choice Analysis. Cambridge University Press. Hoen, A., Koetse, M.J. (2014). A choice experiment on alternative fuel vehicle preferences of private car owners in the Netherlands. Transportation Research Part A: Policy and Practice, 61, pp. 199-215. |
| Keywords: | Poland, Energy and environmental policy, Microsimulation models |
| Date: | 2015–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:008007:8575&r=env |
| By: | Sviataslau Valasiuk (Faculty of Economic Sciences, University of Warsaw); Mikołaj Czajkowski (Faculty of Economic Sciences, University of Warsaw); Marek Giergiczny (Faculty of Economic Sciences, University of Warsaw); Tomasz Żylicz (Faculty of Economic Sciences, University of Warsaw); Knut Veisten (Institute of Transport Economics, Oslo); Marine Elbakidze (Swedish University of Agricultural Sciences; Forest-Landscape-Society Network) |
| Abstract: | Transboundary nature protected areas constitute a considerable proportion of all the existing spatial forms of biodiversity protection. There is a considerable literature on allocation of funds to preserving nature shared by several countries, though less research on the economic benefits that citizens attach to protected transboundary land nature on the other side of the border. We are trying to find out and compare preferences towards increased protection of domestic and foreign segments of the Białowieża Forest, stated by samples of Polish and Belarusian citizens. Whilst Poles on average are willing to pay for an increased passive protection, on their side of the border, most Belarusians seem to be satisfied with the status quo. There is even an apparent mutual disutility derived from the perspective of co-financing bilateral passive protection programmes in the Białowieża Forest. The results can to some extent be explained by a strict border division, by differences in welfare or by behavioural reasons. |
| Keywords: | transboundary nature protected areas, passive protection, discrete choice experiment, willingness-to-pay, latent class model |
| JEL: | Q23 Q28 Q51 Q57 Q58 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:war:wpaper:2017-09&r=env |
| By: | Nava, Consuelo R.; Meleo, Linda; Cassetta, Ernesto; Morelli, Giovanna (University of Turin) |
| Abstract: | In the next few years, it is estimated that the aviation sector will account for more than 15% of total GHG emissions against the current 5%. In order to curb emissions, Directive 101/2008/EC has included the aviation sector within the scope of the European Union Emission Trading Scheme (EU-ETS). The EU-ETS is generating additional costs for airline companies. The present article develops an original model with which to analyse the impact of EU-ETS on the aviation sector's market equilibrium. Our study expands prior research by explicitly allowing for abatement efforts in the cost function of airline companies and by highlighting interactions among strategies to reduce emissions, firm's actions in the secondary market, free allowances, and fines. The results contribute to enhancing policy makers understanding of the impact of the EU-ETS on the aviation sector also in light of its potential global-level extension that is currently under negotiation. |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:uto:dipeco:201710&r=env |
| 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 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:17-268&r=env |
| By: | Katie Jenkins; Swenja Surminski; Jim Hall; Florence Crick |
| Abstract: | Flooding is recognised as one of the most common and costliest natural disasters in England. Flooding in urban areas during heavy rainfall is known as ‘surface water flooding’, considered to be the most likely cause of flood events and one of the greatest short-term climate risks for London. In this paper we present results from a novel Agent-Based Model designed to assess the interplay between different adaptation options, different agents, and the role of flood insurance and the flood insurance pool, Flood Re, in the context of climate change. The model illustrates how investment in adaptation options could reduce London’s surface water flood risk, today and in the future. However, benefits can be outweighed by continued development in high risk areas and the effects of climate change. Flood Re is beneficial in its function to provide affordable insurance, even under climate change. However, it offers no additional benefits in terms of overall risk reduction, and will face increasing pressure due to rising surface water flood risk in the future. The modelling approach and findings are highly relevant for reviewing the proposed Flood Re scheme, as well as for wider discussions on the potential of insurance schemes, and broader multi-sectoral partnerships, to incentivise flood risk management in the UK and internationally. |
| JEL: | G32 |
| Date: | 2016–10–20 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:70116&r=env |
| By: | Weishi Zhang (Department of Geography and Resource Management & Institute of Environment, Energy and Sustainability, The Chinese University of Hong Kong, Hong Kong, China); David I. Stern; Xianbing Liu; Wenjia Cai; Can Wang |
| Keywords: | Energy saving technology, cost estimation, rural households, China |
| JEL: | Q41 Q42 Q54 |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:een:ccepwp:1704&r=env |
| By: | Thomas Leirvik (Nord University); Peter C.B. Phillips (Cowles Foundation, Yale University); Trude Storelvmo (Yale University) |
| Abstract: | How sensitive is Earth’s climate to a given increase in atmospheric greenhouse gas (GHG) concentrations? This long-standing and fundamental question in climate science was recently analyzed by dynamic panel data methods using extensive spatiotemporal data of global surface temperatures, solar radiation, and GHG concentrations over the last half century to 2010 (Storelvmo et al, 2016). These methods revealed that atmospheric aerosol effects masked approximately one-third of the continental warming due to increasing GHG concentrations over this period, thereby implying greater climate sensitivity to GHGs than previously thought. The present study provides asymptotic theory justifying the use of these methods when there are stochastic process trends in both the global forcing variables, such as GHGs, and station-level trend effects from such sources as local aerosol pollutants. These asymptotics validate con dence interval construction for econometric measures of Earth’s transient climate sensitivity. The methods are applied to observational data and to data generated from three leading global climate models (GCMs) that are sampled spatio-temporally in the same way as the empirical observations. The fi ndings indicate that estimates of transient climate sensitivity produced by these GCMs lie within empirically determined con dence limits but that the GCMs uniformly underestimate the effects of aerosol induced dimming. The analysis shows the potential of econometric methods to calibrate GCM performance against observational data and to reveal the respective sensitivity parameters (GHG and non-GHG related) governing GCM temperature trends. |
| Keywords: | Climate sensitivity, Cointegration, Common stochastic trend, Idiosyncratic trend, Spatio-temporal model, Unit root |
| JEL: | C32 C33 |
| Date: | 2017–02 |
| URL: | http://d.repec.org/n?u=RePEc:cwl:cwldpp:2083&r=env |
| By: | KPEMOUA, Palakiyem |
| Abstract: | The purposes of this paper are to investigate empirically the impact of carbon dioxide emission and its restriction on Togo’s economic growth with a model that relies on a STIRPAT (Stochastic Impacts by Regression on Population, Affluence and Technology) suggested by Ehrlich and Holden (1971; 1972) modified, augmented with the restriction of carbon dioxide emission, and to test the causality between that emission and the economic growth. The empirical methodology is based on the autoregressive distributed lag approach suggested by Mohammad H. Pesaran and al. (2001) and on the cointegration and Toda and Yamamoto’s causality tests. The data cover the period 1960-2011. The results obtained indicate that the impact of carbon dioxide emission on Togo’s economic growth in the long-run is positive and significant. The results show also the existence of causality between carbon dioxide emission and economic growth according to Toda and Yamamoto and significant. Besides, the results indicate that the restriction of carbon dioxide emission by Togo compared with Benin in the long-run is negative and significant, while that restriction compared with Ghana’s is positive and significant on Togo’s economic growth. The results reveal also that Togo undertakes fewer efforts in reduction of carbon dioxide emission compared with Benin but more efforts compared with Ghana. |
| Keywords: | Carbon dioxide, Economic growth, ARDL, cointegration, causality, Togo. |
| JEL: | C32 H63 O49 Q50 |
| Date: | 2016–09–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:77624&r=env |
| By: | Knight, S.J; Howley, P.; |
| Abstract: | In order to estimate the welfare effects of exposure to nitrogen dioxide (NO2), we combine life satisfaction data from the British Household Panel Survey (BHPS) and UK Household Longitudinal Survey (UKHLS) with detailed air quality records held by the UK Department for Environment, Food and Rural Affairs (DEFRA). To address endogeneity concerns, we linked these with a variety of georeferenced datasets capturing differences in economic, social and environmental conditions across neighbourhoods. We also took advantage of the panel nature of our data by employing individual fixed effects. Our results suggest a significant and negative association between mean annual ambient NO2 and life satisfaction, and moreover that these effects are substantive and comparable to that of many ’big hitting’ life events. |
| Keywords: | NO2; air pollution; life satisfaction; well-being; environmental quality; Understanding Society; British Household Panel Survey; Geographic Information Systems(GIS),England; |
| JEL: | Q51 Q53 |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:yor:hectdg:17/08&r=env |
| By: | Belyaeva, Maria; Bokusheva, Raushan |
| Abstract: | We conduct an examination of the climate effect to analyze the historical dependence of grain production on temperatures and precipitation levels, and project this dependence to estimate the productivity of different grain types in the mid- and long-terms, given four greenhouse gas concentration pathways. We find that altering temperatures have an equivocal effect on agriculture. The most productive zones of the southern black soil belt is projected to face considerable declines in yields, due to insufficient precipitation levels and high probability of heat waves during the summer vegetation period. The northern part, on the contrary, can experience increases in productivity as a result of milder and drier winters and warmer springs. |
| Keywords: | Russia,grain production,climate change,Russland,Getreideproduktion,Klimawandel |
| JEL: | Q12 Q16 Q54 P32 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iamodp:161&r=env |
| By: | Petropoulos, G.; Willems, Bert (Tilburg University, Center For Economic Research) |
| 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: | L94 L13 C72 D43 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiucen:6d7117f0-0893-4db9-a668-ccbb7a977526&r=env |
| By: | Langbein, Jörg; Peters, Jörg; Vance, Colin |
| Abstract: | More than 3 billion people use wood fuels for their daily cooking needs, with detrimental health implications related to smoke emissions. Global initiatives to disseminate clean cooking stoves emphasize technologies that are either expensive, such as electricity and gasifier stoves, or for which supply chains hardly reach rural areas, such as LPG. This emphasis neglects that many households in the developing world cook outdoors. Our calculations demonstrate that for such households, already the use of less expensive biomass cooking stoves can substantially reduce smoke exposure. The costeffectiveness of clean cooking policies can thus be improved by taking cooking location and ventilation into account. |
| Keywords: | air pollution,health behavior,energy access |
| JEL: | Q53 I12 O13 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:680&r=env |
| By: | Julie Anne Cronin; Don Fullerton; Steven E. Sexton |
| Abstract: | Because electricity is a higher fraction of spending for those with low income, carbon taxes are believed to be regressive. Many argue, however, that their revenues can be used to offset the regressivity. We assess these claims by employing data on 322,000 families in the U.S. Treasury’s Distribution Model to study vertical redistributions between rich and poor, as well as horizontal redistributions among families with common incomes but heterogeneous energy intensity of consumption (different home heating and cooling demands). Accounting for the statutory indexing of transfers, and measuring impacts on annual consumption as a proxy for permanent income, we find that the carbon tax burden is progressive, rising across deciles as a fraction of consumption. The rebate of revenue via transfers makes it even more progressive. In every decile, the standard deviation of the change in consumption as a fraction of consumption varies around 1% or 2% and is larger than the average burden (about 0.7%). When existing transfer programs are used to rebate revenue, the tax and rebate together increase that variation to more than 3% within each decile. The average family in the poorest decile gets a net tax cut of about 1% of consumption, but 44% of them get a net tax increase. Relative to no rebate, every type of rebate we consider increases this variation within most deciles. |
| JEL: | H22 H23 Q48 Q54 |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23250&r=env |
| By: | Hernán Barahona; Francisco Gallego; Jeanne Juan-Pablo Montero |
| Abstract: | Driving restrictions —limits on car use based on the last digit of a car’s license plate— are increasingly popular forms of pollution and congestion control, notwithstanding the literature has shown they typically result in more pollution by moving the fleet composition toward higher emitting vehicles. We study a design feature present in some restriction programs but much overlooked in the literature: that cleaner cars be exempted from the restriction. Based on evidence from Santiago- Chile’s 1992 program, we find this exemption feature to have a large impact on fleet composition toward cleaner vehicles. We also develop and calibrate for Santiago a vertical differentiation model of the car market to show that driving restrictions that make optimal use of these exemptions can be way more effective in the fight against local air pollution than alternative instruments such as scrappage subsidies and gasoline taxes. |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ioe:clabwp:24&r=env |
| By: | Guino Sturla Zerene; Eugenio Figueroa B.; Massimiliano Sturla Z.; Jose Flores P. |
| Abstract: | En este estudio se estima, por primera vez, el monto total de emisiones de carbono asociadas al trasporte de material estéril contenido en el concentrado de cobre exportado desde Chile hacia el resto del mundo. Utilizando datos oficiales del año 2014, se estiman las emisiones de CO2 evitables que ese año se emiten innecesariamente a la atmósfera global por refinar el cobre en Chile, en vez de exportarlo como concentrado de cobre. Se calcula la distancia de las rutas náuticas (origen-destino) utilizadas para todos los embarques de concentrados exportados realizados en año 2014. Además, las estimaciones muestran un análisis de sensibilidad para 4 escenarios, resultantes de considerar dos valores para cada uno de dos parámetros que presentan incertidumbre: i) consumo de combustible de los barcos que trasportan el mineral; y, ii) la distancia efectiva que recorren estos barcos, ya que no viajan directo a los puertos de destino. Las emisiones evitables de CO2 estimadas resultan ser de entre 1,5 y 2,0 millones de toneladas de CO2 el año 2014, para los dos escenarios extremos considerados. La gran relevancia de estos resultados desde el punto de vista de política ambiental queda demostrada por el hecho que, si en vez de exportar concentrados de cobre al resto del mundo, Chile refinara domésticamente dichos concentrados, como resultado de las emisiones de gases de efecto invernadero evitadas con esto, el sector minero chileno cumpliría holgadamente con la meta comprometida por Chile para el año 2030, de reducir en 30% sus emisiones por unidad de PIB generado respecto del nivel alcanzado el año 2007 (Contribución Nacional Tentativa de Chile anunciada en New York en septiembre de 2015 para la COP 21 de París). |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:udc:wpaper:wp442&r=env |
| By: | Samaniego, Joseluis; Schneider, Heloísa |
| Abstract: | Disponer de información sobre los recursos movilizados para enfrentar el cambio climático es un tema crucial para estimar la capacidad para responder a los desafíos de los países para dar cumplimiento a sus políticas de cambio climático y más recientemente, a las metas definidas en sus Contribuciones Nacionalmente Acordadas, o NDCs1 por su sigla en inglés, uno de los mayores esfuerzos mundiales para evitar que la temperatura del planeta supere los 2oC. Cuantificarlos permite reconocer la situación de los países en estas materias, advertir las posibilidades que ofrecen y buscar formas para garantizar necesidades futuras. Tomando como referencia los datos publicados por los países con relación a sus necesidades para poder cumplir con los compromisos asumidos en el marco de sus Contribuciones Nacionalmente Acordadas, el total de recursos que necesitarían los diez2 países de América Latina y el Caribe, LAC, que incluyeron esta información en los compromisos sometidos ante la Convención Marco de la Naciones Unidas para el Cambio Climático o UNFCCC3, por su sigla en inglés, alcanzaría 51 mil millones de dólares4. Los demás países de la región no incluyeron esta información, por lo que se desconocen sus reales dimensiones y las necesidades asociadas, que sin duda superan con creces este monto. |
| Keywords: | CAMBIO CLIMATICO, ASPECTOS ECONOMICOS, FINANCIACION, FINANCIAMIENTO AMBIENTAL, FONDOS, INSTITUCIONES FINANCIERAS, BONOS, COMPAÑIAS DE SEGUROS, CAJAS DE JUBILACIONES, CLIMATE CHANGE, ECONOMIC ASPECTS, FINANCING, ENVIRONMENTAL FINANCING, FUNDS, FINANCIAL INSTITUTIONS, BONDS, INSURANCE COMPANIES, PENSION FUNDS |
| Date: | 2017–02 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:41010&r=env |
| By: | Chen, Xi; Zhang, Xiaobo; Zhang, Xin |
| Abstract: | While there is a large body of literature on the negative health effects of air pollution, there is much less written about its effects on cognitive performance for the whole population. This paper studies the effects of contemporaneous and cumulative exposure to air pollution on cognitive performance based on a nationally representative survey in China. Bymerging a longitudinal sample at the individual level with local air-quality data according to the exact dates and counties of interviews, we find that contemporaneous and cumulative exposure to air pollution impedes both verbal and math scores of survey subjects. Interestingly, the negative effect is stronger for men than for women. Specifically, the gender difference is more salient among the old and less educated in both verbal and math tests. |
| Keywords: | cognitive performance,air pollution,gender difference |
| JEL: | I24 Q53 Q51 J16 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:32&r=env |
| By: | Bidegain Ponte, Nicole |
| Abstract: | En el presente documento se analiza la Agenda 2030 para el Desarrollo Sostenible y sus Objetivos de Desarrollo Sostenible (ODS) a la luz de los desafíos y prioridades para la igualdad de género y los derechos y la autonomía de las mujeres en América Latina y el Caribe. Se presentan ejemplos ilustrativos sobre las interrelaciones entre objetivos y metas de la Agenda 2030, y se advierte sobre la importancia de un abordaje integral para asegurar que el progreso en algunos de los ODS no se realice a través de medios que puedan obstaculizar el logro de los objetivos y metas vinculados a la igualdad de género y los derechos de las mujeres. Se concluye que la Agenda Regional de Género constituye una hoja de ruta para lograr los ODS en América Latina y el Caribe a través de la implementación de políticas públicas que vinculen las dimensiones económica, social y ambiental del desarrollo sostenible y contribuyan a erradicar las desigualdades de género y las desigualdades en los países y entre ellos. |
| Keywords: | MUJERES, GENERO, AGENDA 2030 PARA EL DESARROLLO SOSTENIBLE, OBJETIVOS DE DESARROLLO SOSTENIBLE, DERECHOS DE LA MUJER, ADELANTO DE LA MUJER, IGUALDAD DE GENERO, PROGRAMAS DE ACCION, WOMEN, GENDER, 2030 AGENDA FOR SUSTAINABLE DEVELOPMENT, SUSTAINABLE DEVELOPMENT GOALS, WOMEN'S RIGHTS, WOMEN'S ADVANCEMENT, GENDER EQUALITY, PROGRAMMES OF ACTION |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col040:41016&r=env |
| By: | Stergios Athanasoglou (University of Milan - Bicocca and CMCC); Valentina Bosetti (Bocconi University and FEEM); Laurent Drouet (FEEM and CMCC) |
| Abstract: | We propose a novel framework for the economic assessment of climate-change policy. Our main point of departure from existing work is the adoption of a "satisficing", as opposed to optimizing, modeling approach. Along these lines, we place primary emphasis on the extent to which different policies meet a set of goals at a specific future date instead of their performance vis-à-vis some intertemporal objective function. Consistent to the nature of climate-change policy making, our model takes explicit account of model uncertainty. To this end, the value function we propose is an analogue of the well-known success-probability criterion adapted to settings characterized by model uncertainty. We apply this decision criterion to probability distributions constructed by Drouet et al. (2015) linking carbon budgets to future consumption. The main result that emerges is the superiority of "medium" carbon budgets in line with a 3°C target (i.e., 2000-3000 GtCO2) in preventing large future consumption losses with high probability. Insights from computational geometry facilitate computations considerably, and allow for the efficient application of the model in high-dimensional settings. |
| Keywords: | Satisficing, Model Uncertainty, Climate Change, Computational Geometry |
| JEL: | C60 D81 Q42 Q48 |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2017.13&r=env |
| By: | Falk, Martin; Hagsten, Eva |
| Abstract: | This paper investigates the efficiency of ski lift companies across different climate zones in a group of countries based on establishment data. By a joint estimation of the stochastic frontier production and efficiency equations, the results indicate that ski areas in subarctic climate zones are far more efficient than their counterparts in warmer zones. Presence of a large local market and elevation of the ski area are factors not relevant for efficiency. Output of ski lift operators (companies) increases with the length of ski runs, number of ski lifts, share of slopes covered by snowmaking facilities and availability of fast lifts. Productivity is also significantly higher for ski lift companies owned by a large conglomerate. |
| Keywords: | technical efficiency, stochastic frontier production function, ski lift companies, climate zones, ownership |
| JEL: | L11 L25 L9 L92 R40 |
| Date: | 2017–03–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:77517&r=env |