nep-env New Economics Papers
on Environmental Economics
Issue of 2017‒04‒30
29 papers chosen by
Francisco S. Ramos
Universidade Federal de Pernambuco

  1. Biofuels technology: A look forward By William Stafford; Adrian Lotter; Alan Brent; Graham von Maltitz
  2. The Greenest Path: Comparing the Effects of Internal and External Costs of Motor Vehicle Pollution on Route Choice and Accessibility By Mengying Cui; David Levinson
  3. Designing and Updating a US Carbon Tax in an Uncertain World By Aldy, Joseph
  4. Where Do Green Technologies Come From? Inventor Teams’ Recombinant Capabilities and the Creation of New Knowledge. By Orsatti, Gianluca; Pezzoni, Michele; Quatraro, Francesco
  5. Evolution of Assessments of the Economics of Global Warming: Changes in the DICE model, 1992 – 2017 By William D. Nordhaus
  6. The acceptance of a protected area and the benefits of sustainable tourism: In search of the weak link in their relationship By Sibylle Puntscher; Duc Tran Huy; Janette Walde; Ulrike Tappeiner; Gottfried Tappeiner
  7. Overcoming barriers to the adoption of climate-friendly practices in agriculture By Guillaume Gruère; Anita Wreford
  8. Public acceptance of environmentally friendly electric heating in rural Beijing By Zhang Jingchao; Koji Kotani; Tatsuyoshi Saijo
  9. Doing well by doing good: The role of Mexico's firms in achieving sustainable and inclusive growth By Mabel Gabriel; Patrick Lenain; Mirna Mehrez; Julien Reynaud; Payal Soneja
  10. Can conservation agriculture save tropical forests? The case of minimum tillage in Zambia By Ngoma, Hambulo; Angelsen, Arild
  11. Adaptation and the Mortality Effects of Temperature Across U.S. Climate Regions By Garth Heutel; Nolan H. Miller; David Molitor
  12. A diverse and resilient financial system for investments in the energy transition By F.H.J. Polzin; M.W.J.L. Sanders; Florian Täube
  13. Woody Biomass Processing: Potential Economic Impacts on Rural Regions By Randall Jackson; Péter Járosi; Amir B. Ferreira Neto; Elham Erfanian
  14. 글로벌 통상환경의 변화와 포스트 나이로비 다자통상정책 방향 (Korea's Multilateral Trade Polices in the Changing Global Trade Landscape) By Suh , Jin Kyo; Lee , Hyo-young; Park , Ji Hyun; Lee , Joun Won; Kim , Do Hee
  15. The Incidence of Carbon Taxes in U.S. Manufacturing: Lessons from Energy Cost Pass-through By Sharat Ganapati; Joseph S. Shapiro; Reed Walker
  16. Climate-resilient infrastructure: Getting the policies right By Lola Vallejo; Michael Mullan
  17. Responsibility, inequality, efficiency, and equity in four sustainability paradigms: insights for the global environment from a cross-development analytical model By F. Zagonari
  18. Allocation rules of free allowances in the EU ETS system. A CGE analysis By Michal Antoszewski; Krzysztof Wójtowicz
  19. The role of environmental regulations and innovation in TFP convergence: Evidence from manufacturing SMEs in Viet Nam By Thanh Tam Nguyen-Huu; Minh Nguyen-Khac; Quoc Tran-Nam
  20. Leveraging consumers' recycling incentives in a Circular Economy By FORLIN Valeria; SCHOLZ Eva-Maria
  21. Driving factors of GHG emissions in EU transport activity By Lidia Andrés Delgado; Emilio Padilla Rosa
  22. Hazard risks and their impact on critical infrastructures (Case analysis – natural gas networks of Italy and Romania) By Ionut Purica
  23. The biofuel-development nexus: A meta-analysis By Johanna CHOUMERT; Pascale COMBES MOTEL; Charlain GUEGANG DJIMELI
  24. Gouvernance de l'eau : gérer un bien commun territorialisé By Isabelle Kustosz; Sylvie Delbart
  25. Estrategias para la sostenibilidad financiera de las áreas protegidas en Colombia By Camila Villa Vélez; Carlos Alberto Zárate Yepes; Clara Inés Villegas Palacio
  26. Putting a value on injuries to natural assets: The BP Oil Spill By Richard Bishop; Kevin Boyle; Richard Carson; David Chapman; Matthew DeBell; Colleen Donovan; W. Michael Hanemann; Barbara Kanninen; Matthew Konopka; Raymond Kopp; Jon Krosnick; John List; Norman Meade; Robert Paterson; Stanley Presser; Nora Scherer; V. Kerry Smith; Roger Tourangeau; Michael Welsh; Jeffrey Wooldridge
  27. Global flood depth-damage functions: Methodology and the database with guidelines By Jan Huizinga; Hans de Moel; Wojciech Szewczyk
  28. Temperature and Rainfall Index Insurance in India By Ayako Matsuda; Takashi Kurosaki
  29. Place-Based Innovation Ecosystems: Espoo Innovation Garden and Aalto University (Finland) By Gabriel Rissola; Fernando Hervás; Milena Slavcheva; Koen Jonkers

  1. By: William Stafford; Adrian Lotter; Alan Brent; Graham von Maltitz
    Abstract: This paper assesses biofuels technology readiness and provides foresight to biofuels development in Southern Africa. Efficient conversion pathways, coupled with biomass from waste or high-yielding energy crops, reduces both the costs of biofuels production and the environmental impacts. Currently, most biofuels are more expensive than petroleum fuels and market uptake will be influenced by mandates and subsidies. Advanced biofuels promise greater efficiencies and carbon emission reductions at reduced cost, but will require further R&D to reach commercialization. If developed appropriately, biofuels can reduce carbon emissions and improve energy security, while enabling sustainable agriculture and improved natural resource management.
    Date: 2017
  2. By: Mengying Cui; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)
    Abstract: On-road emissions are a dominant source of urban air pollution, which damages human health. The "greenest path" is proposed as an alternative pattern of traffic route assignment to minimize the costs of emissions or exposure, pursues an environmentally optimal. The framework of a link-based emission cost analysis is built for both internal and external environmental costs and applied to the road network of the Twin Cities Metropolitan area based on the EPA MOVES model. The greenest (internal/external) path is skimmed for all OD pairs to compare the work trip flows on the roads and accessibility distribution. It is shown that the emission cost that travelers impose on others is greater than which they bear. Considering only external emissions costs thus produces a lower accessibility than considering only internal emissions costs. This research contributes to understanding the full cost of travel.
    Keywords: accessibility, Social Costs, Emissions, Pollution exposure, Environmental economics
    JEL: R40 Q53 R20
    Date: 2016
  3. By: Aldy, Joseph (Harvard University)
    Abstract: A carbon tax provides certainty about the price of emissions, but it does so in a context characterized by uncertainty about its environmental benefits, economic costs, and international relations implications. Given current knowledge, suppose that the government sets a carbon tax schedule. In the future, a higher (lower) carbon tax could be justified by the resolution of uncertainty along the following ways: climate change turns out to be worse (better) than current projections; the economic costs of a carbon tax are lower (higher) than expected; other major economies implement more (less) ambitious carbon mitigation programs. This paper describes the design of a predictable process for updating the carbon tax in light of new information. Under this "structured discretion" approach, every five years the president would recommend an adjustment to the carbon tax based on analyses by the Environmental Protection Agency, the Department of the Treasury, and the Department of State on the environmental, economic, and diplomatic dimensions of climate policy. Similar to the expedited, streamlined consideration of regulations under the Congressional Review Act and trade deals under trade promotion authority, Congress would vote up or down on the presidential recommendation for a carbon tax adjustment, without the prospect of filibuster or amendment. This process could be synchronized with the timing of updating of nationally determined contributions under the Paris Agreement in a manner to leverage greater emissions mitigation ambition by other countries in future pledging rounds. The communication of guiding information and the latest data and analysis could serve as "forward guidance" for carbon tax adjustments, akin to the Federal Reserve Board's communication strategy.
    Date: 2017–01
  4. By: Orsatti, Gianluca; Pezzoni, Michele; Quatraro, Francesco (University of Turin)
    Abstract: By exploiting the EPO universe of patent data, we investigate how inventors’ teams recombinant capabilities drive the creation of Green Technologies (GTs).Results suggest the importance of recombinant creation patterns in fostering the generation of GTs. We also find diverse moderating effects of technological green experience and environmental regulation stringency on exploration behaviors. Precisely, the positive effect of team’s explorative behaviors is magnified for teams lacking technological green experience, even more in regimes of weak environmental regulation. Conversely, the effect of explorative behaviors is reduced for green experienced teams, especially in regimes of weak environmental regulation. Finally, we find positive effects of both team’s previous technological green experience and environmental regulation stringency.
    Date: 2017–03
  5. By: William D. Nordhaus
    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 finds 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).
    JEL: C6 Q5 Q54
    Date: 2017–04
  6. By: Sibylle Puntscher; Duc Tran Huy; Janette Walde; Ulrike Tappeiner; Gottfried Tappeiner
    Abstract: Sustainable tourism is seen as a major development opportunity for regions with pristine nature and biodiversity hotspots, particularly in developing countries. The economic advantages of sustainable tourism are supposed to convince local persons that use restrictions and regulations set within a protected area (PA) are necessary and beneficial. Nevertheless, local persons are hardly found to positively assess PAs and their environmental protection efforts. This study combines earlier findings on the existence of PAs, their potential for tourism, their restrictions for economic development and the local population’s acceptance of environmental protection into a comprehensive model. Based on a representative survey of 686 people in the Hoang Lien National Park in Vietnam, we analyse the links in the suggested transmission mechanism. The results identify one major bottleneck for the acceptance of a PA: The people indeed acknowledge the economic advantages of a sustainable tourism sector, but do not see themselves as actual beneficiaries. Even if they are already involved in tourism, they feel the main benefits are generated for outside agents, while local persons have to deal with the restrictions imposed. This result has far-reaching implications for successful tourism policy and implementation of protected areas.
    Keywords: Attitudes towards protected area, Sustainable tourism, Economic development, Environmental protection, Hoang Lien National Park, Vietnam
    JEL: Q01 Q26 L83
    Date: 2017–04
  7. By: Guillaume Gruère (OECD); Anita Wreford (Food and Agriculture Organization of the United Nations)
    Abstract: Considerable efforts have been devoted to understanding and developing technologies and practices that can help the agricultural sector reduce its greenhouse gas emissions and adapt to the impacts of climate change. The uptake of these "climate-friendly" technologies and practices, however, remains low. This report, based on a comprehensive review of the literature, analyses barriers that may prevent farmers from adopting climate-friendly practices. A multitude of potential barriers exist, some associated with farm-level constraints, others operating at the sector level, or created by existing policies. A series of recommendations are made to properly identify these types of barriers and to select the right instruments that would work to implement effective policy solutions.
    Keywords: adaptation policies, Agriculture, climate change, climate mitigation, technology adoption
    JEL: Q16 Q18 Q54
    Date: 2017–04–27
  8. By: Zhang Jingchao (School of Economics and Management, Kochi University of Technology); Koji Kotani (School of Economics and Management, Kochi University of Technology); Tatsuyoshi Saijo (School of Economics and Management, Kochi University of Technology)
    Abstract: China has long suffered from severe haze pollution due to coal consumption in rural areas. One possible solution is promotion of a new electric heating system called a “low temperature air source heat pump (LTHP) technology.†This paper explores the possibility of public acceptance for the LTHP technology of electric heating. To this end, we elicit people’s willingness to adopt (WTA), willingness to pay (WTP) for the LTHP technology, socio-demographic and perception information by conducting field surveys of 579 households and empirically characterize the determinants of the public acceptance. The analysis reveals that income, science literacy and local environmental concern positively affect WTA and WTP, while global environmental concern does not show any significance. Contrary to our initial expectation, people in mountainous areas express the highest WTA and WTP followed by those in hilly and plain areas. Overall, these findings suggest that the promotion could start from mountainous to hilly and from hilly to plain areas, advancing public education on local environmental concerns and science literacy. With such a plan, the electric heating system shall be successfully promoted in the least-cost manner, and energy switch from coal to electricity in rural Beijing will be facilitated for cleaner environment.
    Keywords: public acceptance, air pollution, LTHP, rural Beijing
  9. By: Mabel Gabriel (OECD); Patrick Lenain (OECD); Mirna Mehrez; Julien Reynaud (University of Bern); Payal Soneja
    Abstract: The private sector can be a strategic partner in the pursuit of sustainable and inclusive growth, with the ability to have a profound impact, particularly in areas such as climate change, inclusiveness, equality and good governance. Firms could contribute through three different approaches: philanthropic activities not related to the firm’s activities through which businesses seek to contribute to improving social and environmental conditions; initiatives related to the firm’s operations to diminish their negative impacts and to strengthen those that are positive; and development of innovative products and services. Particularly in the latest two approaches, firms themselves stand to benefit in terms of business opportunities, cost reduction, and consumer loyalty. This paper analyses how Mexican firms perform in terms of environmental, social, and governance practices. The paper provides evidence suggesting that contributing to sustained and inclusive growth brings several financial and productivity advantages to firms. This Working Paper relates to the 2017 OECD Economic Survey of Mexico ( y-mexico.htm).
    Keywords: environment, inclusive growth, inequality, participation, productivity
    JEL: E23 E24 H1 I0 I10 J0 J50 M0
    Date: 2017–04–22
  10. By: Ngoma, Hambulo (School of Economics and Business, Norwegian University of Life Sciences); Angelsen, Arild (School of Economics and Business, Norwegian University of Life Sciences)
    Abstract: Minimum tillage (MT) is a key component in the promotion of conservation agriculture (CA). This paper asks whether MT reduces cropland expansion and thus deforestation. We develop a simple theoretical household model of land expansion, and test hypotheses by estimating a double hurdle model using household survey data from 368 smallholders in rural Zambia. We find that about 19% of the farmers expanded cropland into forests, clearing an average of 0.14 ha over one year. Overall, MT adoption does not significantly reduce deforestation among households in our sample, while labor availability stimulate expansion. Yield augmenting agricultural technologies (such as MT) may not reduce expansion unless combined with other forest conservation measures.
    Keywords: Cropland expansion; deforestation; minimum tillage; double hurdle; Zambia
    JEL: D13 Q12 Q23
    Date: 2017–04–26
  11. By: Garth Heutel; Nolan H. Miller; David Molitor
    Abstract: We study heterogeneity in the relationship between temperature and mortality across U.S. climate regions and its implications for climate adaptation. Using exogenous variation in temperature and data on all elderly Medicare beneficiaries from 1992 – 2011, we show that the mortality effect of hot days is much larger in cool ZIP codes than in warm ones and that the opposite is true for cold days. We attribute this heterogeneity to historical climate adaptation. As one adaptive mechanism, air conditioning penetration explains nearly all of the regional heterogeneity in heat-driven morality but not cold-driven mortality. Combining these results with projected changes in local temperature distributions by the end of the century, we show that failure to incorporate climate heterogeneity in temperature effects can lead to mortality predictions that are wrong in sign for both cool and warm climates. Allowing regions to adapt to future climate according to the degree of climate adaptation currently observed across climates yields mortality impacts of climate change that are much lower than those estimated without allowing for adaptation, and possibly even negative.
    JEL: I18 J14 Q54
    Date: 2017–03
  12. By: F.H.J. Polzin; M.W.J.L. Sanders; Florian Täube
    Abstract: Diversity makes the financial system more resilient. In addition, there is a diverse investment demand to make the transition to a more sustainable energy system. We need, among others, investment in energy transition, circular resource use, better water management and reducing air pollution. The two are linked. Making the financial system more diverse implies more equity, less debt, more non-bank intermediation and more specialized niche banks giving more relation based credit. This will arguably also increase the flow of funds and resources to innovative, small scale, experimental firms that will drive the sustainability transition. Higher diversity and resilience in financial markets is thus complementary and perhaps even instrumental to engineer the transition to clean energy in the real economy.
    Keywords: Financial markets, clean energy investments, diversity, public policy
    Date: 2017–02
  13. By: Randall Jackson (Regional Research Institute, West Virginia University); Péter Járosi (Regional Research Institute, West Virginia University); Amir B. Ferreira Neto (Regional Research Institute, West Virginia University); Elham Erfanian (Regional Research Institute, West Virginia University)
    Abstract: This paper reports on economic and environmental impacts of introducing woody biomass processing in an economically distressed area in central Appalachia, one of the more heavily forested areas in the U.S. Woody biomass is a readily available unconventional energy source that has the potential to boost the rural region’s economy. We use a static regional computable general equilibrium model to assess regional economic impacts of two different WBP production pathways, biomass to ethanol and biomass to biofuel via fast pyrolysis. In an economy with a workforce approaching 160,000, we find that introducing woody biomass ethanol or fast pyrolysis processing would increase regional output by 0.45% and 0.78%, boost jobs by 0.13% and 0.20%, and increase income by 0.16% to 0.26%, respectively. The results from the environmental assessment show that the ethanol pathway is substantially more environmentally friendly than the fast pyrolysis pathway.
    Keywords: woody biomass processing, computable general equilibrium models, central Appalachia, rural economic development
    JEL: R58 R15 Q51
    Date: 2017–04–06
  14. By: Suh , Jin Kyo (Korea Institute for International Economic Policy); Lee , Hyo-young (Korea Institute for International Economic Policy); Park , Ji Hyun (Korea Institute for International Economic Policy); Lee , Joun Won (Korea Institute for International Economic Policy); Kim , Do Hee (Korea Institute for International Economic Policy)
    Abstract: Korean Abstract: 세계적으로 반무역자유화 정서가 확산되는 가운데 국제무역이 구조적으로 감소하고 있고 선진국을 중심으로 하는 복수국간협상이 확산되고 있다. 또한 파리기후변화협약의 이행으로 무역과 환경이 조화를 이루어야 하는 시대가 도래하였다. 본 보고서는 이러한 글로벌 통상환경에서 나타난 주요한 변화를 고려하여 나이로비 각료회의 이후 우리나라가 취해야 할 다자통상정책의 방향을 단기 DDA 협상대책과 중장기 정책방향으로 나누어 제시하였다. English Abstract: The WTO's Tenth Ministerial Conference, held in Nairobi on December 2015, concluded with the adoption of the "Nairobi Package", several ministerial decisions on agriculture, cotton and least-developed countries. The Nairobi Package includes a historic decision to eliminate agricultural export subsidies, the most important reform of international trade rules in agriculture since the WTO was founded. The biggest disagreement among WTO members, however, goes beyond specific substantive issues: it is about the future of the Doha agenda and the WTO's negotiating function itself. While developing countries wished to continue with negotiations, industrialized nations, chief among them the United States, called for an end to the Doha Round. The Nairobi Ministerial Declaration also acknowledges that WTO members "have different views" on the future of the Doha Round negotiations but notes the "strong commitment of all members to advance negotiations on the remaining Doha issues". In this situation, there have been significant changes in international trade since recent decades. First, trade growth has been anaemic since 2010. Already before the 2008 Global Crisis hit, the rate of growth of the ratio of global trade to GDP had slowed considerably. Most recent data show trade values declining. Second, plurilateral negotiations are rapidly widespread in the WTO. In particular, developed members have pushed for more sectoral deals like the ITA-II. Currently, a similar deal on tariff reductions for environmental goods is being negotiated. More sectoral tariff liberalization of this sort might be a good area to pursue. Along the same lines, the trade in services talks going on in Geneva could be brought formally into the WTO framework. Third, at the Paris climate conference (COP21) in December 2015, 195 countries adopted the first-ever universal, legally binding global climate deal, which is expected to affect a significant impact on global trade. At the heart of the Paris climate agreement are national-level plans, called Intended Nationally Determined Contributions (INDCs), to reduce greenhouse gas (GHG) emissions. Although these INDCs are voluntary, they are considered a critical first step for an agreement designed to progressively ratchet up national commitments to collectively limit a global temperature rise to 1.5 degrees Celsius above pre-industrial age levels. It is now time that we have to design a harmonization between trade and environments.
    Date: 2016–12–30
  15. By: Sharat Ganapati (Dept. of Economics, Yale University); Joseph S. Shapiro (Cowles Foundation, Yale University); Reed Walker (University of California, Berkeley, IZA, & NBER)
    Abstract: This paper studies how changes in energy input costs for U.S. manufacturers affect the relative welfare of manufacturing producers and consumers (i.e. incidence). In doing so, we develop a partial equilibrium methodology to estimate the incidence of input taxes that can simultaneously account for three determinants of incidence that are typically studied in isolation: incomplete pass-through of input costs, differences in industry competitiveness, and factor substitution amongst inputs used for production. We apply this methodology to a set of U.S. manufacturing industries for which we observe plant-level unit prices and input choices. We find that about 70 percent of energy price-driven changes in input costs are passed through to consumers. We combine industry-specific pass-through rates with estimates of industry competitiveness to show that the share of welfare cost borne by consumers is 25-75 percent smaller (and the share borne by producers is correspondingly larger) than models featuring complete pass-through and perfect competition would suggest.
    Keywords: Pass-through, incidence, energy prices, productivity, climate change
    JEL: H22 H23 Q40 Q54
    Date: 2017–04
  16. By: Lola Vallejo; Michael Mullan
    Abstract: Climate change will affect all types of infrastructure, including energy, transport and water. Rising temperatures, increased flood risk and other potential hazards will threaten the reliable and efficient operation of these networks, with potentially large economic and social impacts. Decisions made now about the design, location and operation of infrastructure will determine how resilient they will be to a changing climate. This paper provides a framework for action aimed at national policymakers in OECD countries to help them ensure new and existing infrastructure is resilient to climate change. It examines national governments’ action in OECD countries, and provides recent insights from professional and industry associations, development banks and other financial institutions on how to make infrastructure more resilient to climate change.
    Keywords: adaptation, climate change, infrastructure, risk management
    JEL: H54 O18 Q54
    Date: 2017–04–25
  17. By: F. Zagonari
    Abstract: This paper develops a theoretical framework to assess the feasibility of global environmental sustainability solutions based on one or more value changes. The framework represents four sustainability paradigms (weak sustainability WS, a-growth AG, de-growth DG, strong sustainability SS) and five value changes (i.e., a sense of responsibility for nature β, future generations γ, or current generations in developing countries δ; aversion to inequality for current generations ε or future generations ζ). It defines solutions in terms of consumption, environment use, and welfare for representative individuals in both developed (OECD) and developing (non-OECD) countries. Solutions are characterised by efficiency (i.e., Pareto and Kaldor-Hicks) with respect to welfare and by intra- and inter-generational equality for consumption, environment use, and welfare, by confirming internal consistency and consistency with alternative equity approaches for utilitarianism (i.e., Harsanyi), egalitarianism (i.e., Arneson for welfare; Dworkin for consumption or environment use; Sen for consumption and environment use), and contractarianism (i.e., Rawls). Theoretical and operational insights are described for alternative sustainability paradigms and equity approaches. In terms of feasibility, by considering improved technology θ, decreased population η, and modified consumption α, the ordering is γ > δ > ε > ζ and AG > SS > DG > WS: β is unfeasible. In terms of internal consistency, γ > δ = ε = ζ and SS > AG > DG: WS is internally inconsistent. In terms of consistency with an equity approach, γ > δ = ζ > ε and SS > AG > DG > WS.
    JEL: Q5
    Date: 2017–04
  18. By: Michal Antoszewski; Krzysztof Wójtowicz
    Abstract: Unilateral emission reduction policy conducted by the EU may undermine competitiveness of European industries. In order to mitigate this risk, these industries are granted with free emission allowances based on their historical production („historical allocation”). However, another option which is currently discussed could be the linkage of free allowances amount to the current production level („dynamic allocation”). Such a rule which would not „punish” companies for output increases. Multi-sector, multi-region computable general equilibrium (CGE) model, calibrated to GTAP data. Counterfactual analysis aimed at comparison of various allocation rules. In general, dynamic allocation rule favors industries expected to record a relatively fast grow in the future. However, on the macroeconomic level, dynamic allocation rule differs very little from the historical one.
    Keywords: European Union, General equilibrium modeling, Energy and environmental policy
    Date: 2016–07–04
  19. By: Thanh Tam Nguyen-Huu; Minh Nguyen-Khac; Quoc Tran-Nam
    Abstract: This is a pioneer study investigating the relationship between environmental compliance and TFP convergence for SMEs. It examines the impacts of environmental compliance, and its combination with innovation, on TFP convergence of manufacturing SMEs. We applied the dynamic panel regression method to estimate stochastic TFP. We find evidence of a ß-convergence but a s-divergence. Impacts of environmental practices of firms—pollution abatement and control expenditure, and environmental treatment—are only significant through their interaction with innovation. The ß-convergence in firms’ TFP is influenced by their industrial identity, while firms’ size and investment have marginal impacts.
    Date: 2017
  20. By: FORLIN Valeria (Università di Roma Tor Vergata, and Toulouse School of Economics); SCHOLZ Eva-Maria (Université catholique de Louvain, CORE, Belgium)
    Abstract: We study rms' incentives for supporting the transition to a Circular Economy via the choice of their business model, accounting for consumers' recycling preferences and policy makers' Extended Producer Responsibility (EPR) initiatives. Our analysis focuses on take-back programs (TBPs) that reward consumers for dropping o previous purchases at collection points. Results suggest that the uptake of TBPs is primarily driven by the revenue opportunities of rms' collecting and recycling activities and the EPR policy design. Recycling subsidies provide rms with greater incentives than disposal fees or take-back requirements; stricter policies may increase rms' incentives only under take-back requirements or recycling subsidies. From an environmental and consumer welfare perspective, the introduction of TBPs should be encouraged in most cases; regarding producer welfare and the costs of policy makers' initiatives, the result varies with the EPR policy design. In this context, we also identify the trade-o s policy makers face when designing their initiatives.
    Keywords: Circular Economy, Extended Producer Responsibility, Optimal Policy Design, Recycling, Take-back Programs, Waste Reduction.
    Date: 2017–03–14
  21. By: Lidia Andrés Delgado (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona); Emilio Padilla Rosa (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona)
    Abstract: This research identifies the driving factors of greenhouse gas emissions in transport activity in the EU-28 and the contribution of each of them to its changes during the period 1990–2014. The analysis is based on the STIRPAT model, which is broadened to investigate in depth the impact on transport emissions of changes in the transport activity and in the whole economy. In short, the study takes into account the population, economic activity, transport volume, transport energy intensity and structural composition of transport activity in terms of transport modes’ share and of energy sources’ mix. Using panel data econometric techniques, the significance of each factor and the impact of its change on emissions are identified. A better knowledge of the key driving forces is crucial for implementing policies focused on successfully reducing emissions in transport activity. The results allow a preliminary assessment of the potential effectiveness of the 2011 Transport White Paper measures aimed at cutting transport emissions.
    Keywords: Greenhouse gas emissions; STIRPAT model; transport activity
    Date: 2017–03
  22. By: Ionut Purica
    Abstract: Hazard risks have important impact on critical infrastructures such as gas network based on large climate and seismic data the risk distribution is determined and the risk maps for the Italian and Romanian gas networks are calculated Mitigation and adaptation measures and insurance policy for critical infrastructures
    Keywords: italy and Romania, Energy and environmental policy, Modeling: new developments
    Date: 2016–07–04
  23. By: Johanna CHOUMERT (Centre d'Etudes et de Recherches sur le Développement International(CERDI)); Pascale COMBES MOTEL (Centre d'Etudes et de Recherches sur le Développement International(CERDI)); Charlain GUEGANG DJIMELI
    Abstract: While the production of biofuels has expanded in recent years, findings in the literature on its impact on growth and development remain contradictory. This paper presents a meta-analysis of computable general equilibrium studies published between 2006 and 2014. Using 26 studies, we shed light on why their results differ. We investigate factors such as biofuel type, geographic area and the characteristics of models employed. Our results indicate that the outcomes of CGE simulations are sensitive to model parameters and also suggest heterogenous effects of biofuel expansion between developed / emerging countries and Sub-Saharan African countries. Our quantitative meta-analysis complements existing narrative surveys and confirms that results are sensitive to key hypotheses on essential parameters. Simulations on longer time periods and in multi-country studies lead to results that indicate higher impacts of biofuel expansion on growth and household income. Moreover, simulations with a shock in agricultural productivity indicate positive welfare gains, unlike simulations with a shock on land expansion. Lastly, we find that biodiesels lead to higher welfare gains than biofuels.
    Keywords: Biofuel, Bioethanol, Biodiesel, Energy, Development, Meta-regression, Computable General Equilibrium Model.
    JEL: C68 O13 Q16
    Date: 2017–04
  24. By: Isabelle Kustosz (IDP LARIME - Institut du Développement et de la Prospective - Laboratoire d'Analyses et de Recherches Interdisciplinaires en Management des Entreprises - Université de Valenciennes et du Hainaut-Cambresis - Institut d'Administration des Entreprises (IAE) - Valenciennes); Sylvie Delbart (D2DPE REGION NPDC)
    Abstract: L’eau porte en elle des problématiques d’une grande complexité. Les représentations de l’eau se sont empilées au fil du temps entre conception utilitaire et conception patrimoniale, entre risque et ressource, entre consommation et préservation, entre expertises et savoirs locaux. Elle est à la fois ressource, service, menace ; tantôt considérée comme un bien commun et un droit fondamental , tantôt réduite à un bien économique et un consommable. On constate de nombreux conflits d’usage tant sur la question de sa qualité que de sa quantité. On est alors frappé par la forte dimension technique et institutionnelle de la gestion de l’eau qui est pourtant un élément des plus naturels qui soit. Mais il semblerait que ses diverses tensions soient aussi porteuses de nouvelles formes de régulation. On remarque ainsi qu’une multitude d’acteurs intervient dans la gestion de l’eau. Bien qu’il soit difficile de leur faire partager un diagnostic comme de leur faire adopter une stratégie commune, les compromis et les ajustements restent heureusement possibles : parfois même ils mènent à des solutions innovantes et à des expérimentations audacieuses. Ainsi les lois et directives en vigueur favorisent des objectifs de gestion intégrée et de gestion participative de l’eau. C’est sur cette base que la problématique de l’eau a été saisie par la Fabrique 1 du Collège régional de prospective dans le cadre de nos réflexions sur la société de la connaissance. Le cas de la gestion de l’eau nous a semblé un terrain propice pour donner à voir l’entrelacs des acteurs et parties prenantes en jeu, pour souligner l’enrichissement mutuel des savoirs experts et profanes, scientifiques ou d’expériences, et pour concilier interrogations de portée universelle et interrogations localement encastrées. Nous avons souhaité nous demander, dans le cadre d’une réflexion globale sur l’action publique et d’une responsabilité sociale accrue
    Keywords: Eau, Gouvernance, Politiques Publiques, Territoire
    Date: 2016
  25. By: Camila Villa Vélez; Carlos Alberto Zárate Yepes; Clara Inés Villegas Palacio
    Abstract: En respuesta al creciente deterioro ambiental en Colombia y en el mundo se han desarrollado mecanismos para garantizar la permanencia de los ecosistemas estratégicos. Entre las acciones adelantadas en el país se destaca la creación del Sistema de Parques Nacionales Naturales y el Sistema Nacional de Áreas Protegidas, para la conservación de ecosistemas que proveen bienes y servicios ambientales. No obstante, la falta de recursos financieros ha limitado la gestión de las Áreas Protegidas (AP). En este sentido se han adelantado estudios para identificación de mecanismos de financiación que conduzcan a la sostenibilidad financiera de las AP en el país; sin embargo, las acciones implementadas hasta ahora no han sido suficientes, por lo que es necesario identificar nuevas estrategias Con la finalidad de plantear alternativas financieras para la sostenibilidad de las AP, en este trabajo, se desarrollaron acciones como el entendimiento en el funcionamiento de los sistemas de AP en Colombia y otros países del mundo y la realización de entrevistas a expertos en el tema de conservación.
    Keywords: área protegida, biodiversidad, sostenibilidad financiera, ecosistemas, mecanismosde financiación, valoración económica, educación ambiental
    JEL: Q56
    Date: 2016–12–28
  26. By: Richard Bishop; Kevin Boyle; Richard Carson; David Chapman; Matthew DeBell; Colleen Donovan; W. Michael Hanemann; Barbara Kanninen; Matthew Konopka; Raymond Kopp; Jon Krosnick; John List; Norman Meade; Robert Paterson; Stanley Presser; Nora Scherer; V. Kerry Smith; Roger Tourangeau; Michael Welsh; Jeffrey Wooldridge
    Date: 2017
  27. By: Jan Huizinga (HKV Consultants, Lelystad, Netherlands); Hans de Moel (VU University Amsterdam, Institute for Environmental Studies); Wojciech Szewczyk (European Commission - JRC)
    Abstract: Assessing potential damage of flood events is an important component in flood risk management. Determining direct flood damage is commonly done using depth-damage curves, which denote the flood damage that would occur at specific water depths per asset or per land-use class. Many countries have developed flood damage models using depth-damage curves based on analysis of past flood events and on expert judgement. However, the fact that such damage curves are not available for all regions hampers damage assessments in some areas. Moreover, due to different methodologies employed for various damage models in different countries, damage assessments cannot be directly compared with each other, obstructing also supra-national flood damage assessments. To address these problems a globally consistent database of depth-damage curves has been developed. This dataset contains damage curves depicting fractional damage as a function of water depth as well as the relevant maximum damage values for a variety of assets and land use classes. Based on an extensive literature survey normalised damage curves have been developed for each continent, while differentiation in flood damage between countries is established by determining maximum damage values at the country scale. These maximum damage values are based on construction cost surveys from multinational construction companies, which provide a coherent set of detailed building cost data across dozens of countries. A consistent set of maximum flood damage values for all countries was computed using statistical regressions with socio-economic World Development Indicators. Further, based on insights from the literature survey, guidance is also given on how the damage curves and maximum damage values can be adjusted for specific local circumstances, such as urban vs. rural locations or use of specific building material. This dataset can be used for consistent supra-national scale flood damage assessments, and guide assessment in countries where no damage model is currently available.
    Keywords: Floods, inundation, damage functions, global
    Date: 2017–04
  28. By: Ayako Matsuda (Research Fellow, Japan Society for the Promotion of Science, Osaka School of International Public Policy (OSIPP)); Takashi Kurosaki (Professor, Institute of Economic Research, Hitotsubashi University)
    Abstract: Weather index insurance has been attracting much attention from academics and policy makers. This paper investigates the demand for temperature and rainfall index insurance in India using the data from randomized subsidy experiments. We find that price, income and asset levels influence the demand for both temperature and rainfall insurance. We also show that richer farmers are less price-sensitive and farmers' response to the discount becomes less price-sensitive as the amount of discount increases. Non-price factors such as age and education level of a respondent are important correlates. Purchase decisions are also influenced by individual prior experience and society experience of insurance.
    Keywords: Weather Insurance, Temperature Insurance, Demand for Insurance
    JEL: O13 O16 G22
    Date: 2017–04
  29. By: Gabriel Rissola (European Commission – JRC); Fernando Hervás (European Commission - JRC); Milena Slavcheva (European Commission - JRC); Koen Jonkers (European Commission – JRC)
    Abstract: The present case study pursues to identify key success factors in Espoo innovation ecosystem, with a particular attention to the role of Aalto University, with a view to inform policies aimed at supporting the strengthening and emergence of existing and new place-based innovation ecosystems in other EU regions and cities, as well as of entrepreneurial universities. It starts by defining what a place-based innovation ecosystem is intended to be, and identifies a conceptual framework that can operationalise the study of concrete cases. The study continues with a presentation of the main local actors and pre-existing enabling factors, progressively moves to the catalysers that have made this innovation garden flourish (notably the reforms that enabled the emergence of Aalto University with its particular governance model) and finally analyses its Quadruple Helix collaboration model and the way the whole ecosystem is orchestrated.
    Keywords: place-based, territorial, urban, innovation ecosystem, smart specialisation, entrepreneurial university, quadruple helix, orchestration
    Date: 2017–04

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