nep-env New Economics Papers
on Environmental Economics
Issue of 2017‒06‒04
thirty-one papers chosen by
Francisco S. Ramos
Universidade Federal de Pernambuco

  1. Sustainable Consumption: Eco-labelling and its impact on consumer behavior - evidence from a study on Polish consumer By Lucyna Witek
  2. Local development toward permanently sustainable low emission economy By Piotr Kulyk; Lukasz Augustowski; Anna Mroz
  3. The improvement of the company’s environmental performance through the application of Green Lean/Lean and Green approach By Malgorzata Szymanska-Bralkowska; Ewa Malinowska
  4. Consumer attitudes in the light of the concept of sustainable consumption in Lubuskie voivodeship against the background of trends in consumption in Poland By Piotr Kulyk; Mariola Michalowska; Monika Patelska
  5. The empirics of enabling investment and innovation in renewable energy By Géraldine Ang; Pralhad Burli; Dirk Röttgers
  6. Regional socio-economic determinants of the development of the bio-economy in agriculture By Piotr Kulyk; Anna Kowalewicz; Aleksandra Nowomiejska
  7. Biodiversity Productive Capacity in Mixed Farms of North-West of France: a Multi-output Primal System By François Bareille; Pierre Dupraz
  8. Natural capital depletion: The impact of natural disasters on inclusive growth By Rajapaksa, Darshana; Islam, Moinul; Managi, Shunsuke
  9. Co-firing coal with biomass under mandatory obligation for renewable electricity: implication for the electricity mix By Vincent Bertrand
  10. Be who you ought or be who you are? Environmental framing and cognitive dissonance in going paperless By Greer Gosnell
  11. Running with a Mask? The Effect of Air Pollution on Marathon Runners’ Performance By Fu, Shihe; Guo, Mengmeng
  12. Climate change and trade policy interactions: Implications of regionalism By Harro van Asselt
  13. Value-based banking in CEE countries - ecological point of view By Bogna Janik
  14. Renewable energy governance in India: challenges and prospects for achieving the 2022 energy goals By Rehman, Salma; Hussain, Zaki
  15. Economic growth and development with low-carbon energy By François Cohen; Antoine Dechezlepretre
  16. Socio-economic and enviromental effects of bioenergy based on wood ine the development of remote areas By Natalia Vukovic; Andrey Mehrentsev; Evgeny Starikov
  17. Household Energy Elasticities in Pakistan: An Application of the LA-AIDS Model on Pooled Household Data By Muhammad Irfan; Michael P. Cameron; Gazi Hassan
  18. Energy consumption, trade openness, economic growth, carbon dioxide emissions and electricity consumption: evidence from South Africa based on ARDL By Hasson, Ashwaq; Masih, Mansur
  19. The impact of environmental regulations on the farmland market and farm structures: An agent-based model applied to the Brittany region of France By Elodie Letort; Pierre Dupraz; Laurent Piet
  20. Young Minority Entrepreneurs: Personal Traits and Environmental Constraints By Qaadny Amir
  21. Contemporary Theories of Sustainable Development: Approaches, Methodology, Practical Recommendations By Voloshinskaya, Anna A.; Komarov, Vladimir M.; Kotsyubinskiy, Vladimir A.
  22. Pike (Esox lucius) stock management in designated brown trout (Salmo trutta) fisheries: Anglers’ preferences By Curtis, John
  23. Who Should Own a Renewable Technology? Ownership Theory and an Application By Talat S. Genc; Stanley S. Reynolds
  24. Endogenous Environmental Variables In Stochastic Frontier Models By Amsler, Christine; Prokhorov, Artem; Schmidt, Peter
  25. The conditions of demand and supply in the market of organic agriculture in Poland compared to selected European countries By Piotr Kulyk; Mariola Michalowska; Paulina Paluszkiewicz
  26. Forthcoming in International Journal of the Commons By Tatsuyoshi Saijo; Jun Feng; Yutaka Kobayashi
  27. Why Countries Shouldn't Sell Their Natural Resources To Foreigners By Gorga, Carmine
  28. Effect of Groundwater Development Project on Diarrhea Incidence in Rural Zambia By Yasuharu SHIMAMURA; Hiroshi NISHINO; Hirofumi TSURUTA; Keitaro AOYAGI
  29. Green Farming Development Opportunities: the Case of Lithuania By Rita Remeikiene; Ligita Gaspareniene
  30. The Hummingbird Vol.4 No.5 By -
  31. Risk, Resilience & Sustainable Growth: U.S. Monetary Policy in a Post-Recovery Era By Williams, John C.

  1. By: Lucyna Witek (Rzeszow University of Technology, Poland)
    Abstract: Environmental pollution has led to a growing interest in protecting the environment of various stakeholder groups, especially consumers, who in their purchasing behavior point to eco-labels. The purpose of the study is to analyze consumers attitudes towards eco-labels. The direct survey method was used. The survey was conducted from 1 December 2015 to 31 January 2016 among 390 consumers who are residents of south-eastern and southern Poland. The study conducted confirms that consumers have positive attitudes toward eco-labels, but have overall and partial knowledge of them. Almost half of respondents (48.2%) buy eco-labels, but only a small group has knowledge of various eco-labels (24.9%). The recognition of EU eco-labels is declared by 43.4% of survey participants (national eco-label – 35.1%). One may notice an inconsistency in the test participant declarations. A large group of respondents believe that manufacturers use eco-labels for sales and image purposes (61%). Only one third (32.1%) have confidence in eco-labels products. Quite a large number of respondents (43.1%) are willing to pay a higher price for such products. Almost three quarters of respondents declared that they were buying products from reliable sources but without eco-labels (76.2%). This study is a valuable contribution to research and a discussion on consumer ecological behavior, and contributes to sustainable consumption research. It creates a deeper and more detailed analysis of attitudes towards eco-labelling. It gives guidance to manufacturers and retailers, especially in consumer communication strategies. The results of the study may help to increase the effectiveness of eco-labelling. The research implies some values to society and helps to solve environmental problems.
    Keywords: green product, sustainable consumption, eco-labelling, consumer, ecolabel
    JEL: D12 M31 M37 Q56
    Date: 2017–05
  2. By: Piotr Kulyk (University of Zielona GoraFaculty of Economics and Management); Lukasz Augustowski (University of Zielona Gora); Anna Mroz (University of Zielona Gora)
    Abstract: This article presents issues of rational management of energy throughout the Lubuskie province. The starting point was the idea of permanently sustainable development. The authors focused on the problem of reducing emission of polluting gases in the context of sustainable development. The results obtained were collated with other provinces and a comparative analysis was made. The aim of the article is to evaluate the changes of emission of pollutants as well as the factor affecting emission and also to indicate the directions of its reduction. Such an approach is connected with both a long and short-term horizon, which follows from the necessity of securing clean air and “healthy atmosphere” at present as well as for future generations, taking into consideration , however , the economical, social and environmental context. In that sense, we are looking for an alternative which would secure permanent sustainability of development throughout the province. The paper analyzes different solutions to decrease the use of coal to achieve the aims of CO2 emission reduction throughout the Lubuskie province by means of an econometric model. The authors used a fixed effects model and selected statistical tests serving to evaluate and chose the right model. For evaluating the levels of penetration of different technologies considering their economical, technical and environmental characteristics, a probabilistic approach and historical data were used. Even though air pollution with gases has been dropping in the Lubuskie province since 2011, still the actions taken at the regional level are of great significance. The policy pursued by the region should include promotion of renewable sources of energy, spatial planning, or changes in the lifestyle. In the context of sustainable development, variables such as forestation, wages, number of plants, poverty threshold and population density have proven to be important.
    Keywords: spat Lubuskie province; CO2 reduction; sustainable development
    JEL: Q01 Q54
    Date: 2017–05
  3. By: Malgorzata Szymanska-Bralkowska (University of Gdansk, Poland); Ewa Malinowska (University of Gdansk, Poland)
    Abstract: Green Lean (Lean and Green) approach is based on the lean method. As the literature and case studies show the Japanese quality improvement tools can be used in environmental management as well as in quality management. Companies that focus on sustainability may use those tools and methods to improve its processes and eliminate green waste at the same time. The research concentrates on the examples of the companies that started to implement the Green Lean (Lean and Green). The purpose of the article is to present how the application of Green Lean (Lean and Green) approach improves the environmental performance of the company and what are the benefits. Critical review of the literature, observation, interviews in selected researched companies. By identifying and eliminating the green waste i.a. in energy, materials, garbage, water, emissions, biodiversity, transportation researched companies are minimizing its negative impact on environment. As the research shows the employees should be motivated and involved in the process so does the management to make it work. Green Lean (Lean and Green) approach enables the companies to perform in profitable and sustainable way at the same time.
    Keywords: Lean Management; Green Lean; Lean and Green; environment
    JEL: Q5 Q59
    Date: 2017–05
  4. By: Piotr Kulyk (Uniwersytet Zielonogorski); Mariola Michalowska (Uniwersytet Zielonogorski); Monika Patelska (Uniwersytet Zielonogorski)
    Abstract: Research background: The article has address the issue of sustainable consumption which is becoming increasingly important on account of the adverse social and environmental consequences caused by the development and growth of societies. Sustainable consumption encourages to make rational choices and take responsibility for one's choices. Consumers take a number of decisions every day that affect not only themselves, but also cause externalities. There are many studies that indicate that consumers when buying goods and services are driven by environmental and ethical considerations. Purpose of the article: Changes occurring in the environment affect consumer behavior leading to multiplicity of attitudes and changes in consumption trends. The article has shown consumer behavior in line with the concept of sustainable development against the background of trends in consumption in Poland. Methodology/methods: The basis for the discussion in the article will be: literature studies, available empirical studies and our own results of the survey among respondents in Lubuskie voivodeship. Surveys using questionnaires were directed at 541 respondents. The number of correctly completed questionnaires was 500, and the figures contained in them were subjected to further analysis. Findings: Respondents in their purchasing choices are not guided by the influence of the consumption on the natural environment. However, in their behaviors we can notice some environmental measures, which stem from different reasons, depending on the socio-economic conditions.
    Keywords: consumers’ behaviours, sustainable consumption, trends in consumption, Lubuskie voivodeship
    JEL: Q01 D11 D12
    Date: 2017–05
  5. By: Géraldine Ang (OECD); Pralhad Burli (Montclair State University); Dirk Röttgers (OECD)
    Abstract: This working paper undertakes econometric analysis to assess the impacts of climate mitigation policies and the quality of the investment environment on investment and innovation in renewable power in OECD and G20 countries. It also assesses how countries’ investment environments interact with climate mitigation policies to influence investment and patent activity in renewable power. The paper gathered and tested data across OECD and G20 countries on more than 70 explanatory variables, which were analysed using two Poisson-family regression models: one to investigate determinants of investment flows in renewable power from 2000 until 2014; and one to investigate determinants of patent counts in renewable-power technologies from 2000 until 2012. Results of the econometric analysis are consistent with the main hypothesis in this paper that beyond setting climate mitigation policies, policy makers need to strengthen the general investment environment and align it with climate mitigation policies in order to mobilise investment and innovation in renewable power across OECD and G20 countries.
    Keywords: climate change, climate finance, estimation, public intervention, regression
    JEL: F30 H23 L94 O3 Q42 Q48 Q54 Q55 Q58
    Date: 2017–05–31
  6. By: Piotr Kulyk (Uniwersytet Zielonogorski, Poland); Anna Kowalewicz (Uniwersytet Zielonogorski, Poland); Aleksandra Nowomiejska (Uniwersytet Zielonogorski, Poland)
    Abstract: Bio-economy regional level is essential for the socio-economic impact, especially in sparsely populated peripheral areas. The positive effects of bio-economy in the agro-food sector can be regarded as an increase in em-ployment and incomes and security of supply. The purpose of the article was to define and determine the potential of bio-economy in the polish Voivodships. In addition, it attempts to define the role of bio-economy in the agro-food sector, including the environmental aspects. The study covered the period 2005-2015. In order to assess the influence of macroeconomic factors on the development of sustainable agriculture the article used method of panel analysis with fixed effects. The data for the analysis was taken from the statistical data from the Local Data Bank (BDL), the Central Statistical Office and the Chief Inspectorate of Trade Quality of Agricultural and Food (GIJHARS). In order to increase the potential of the region it is necessary to recognize the im-portance of local knowledge as a stimulant of competitiveness of regional devel-opment, while taking into account the diversity and complexity of local systems. In order to improve opportunities for bio-economy and green growth it is necessary to better understand the role of natural capital and related changes.The integration of cross-sectoral dimensions of ecological, social-cultural and socio-economic development in the process of regional management is becoming important. In this context, there is a need for further study of the so-cio-economic conditions to determine the regional conditions providing a perma-nently sustainable development with the use of bio-economy in agriculture.
    Keywords: bio-economy, local development, economic and social determinants, the Lubuskie Voivodeship, sustainable agriculture
    JEL: O13 Q01
    Date: 2017–05
  7. By: François Bareille; Pierre Dupraz
    Abstract: Previous studies on the productive value of biodiversity emphasized that crop diversity increases crop yields. Here, we focus on the productivity of crop diversity and permanent grasslands for crops and milk. Using a GMM approach, we estimate detailed production functions using a sample of 3960 mixed farms from the FADN between 2002 and 2013. We highlight that permanent grasslands enhance crop production. We confirm that crop diversity increases crop and milk yields. Permanent grasslands and crop diversity are however substitute inputs. We also find that both of these biodiversity productive capacities influence variable input productivities. These results suggest the potential adaptations of farmers’ choices to environmental measures.
    Keywords: ecosystem services, agriculture, permanent grassland, crop diversity
    JEL: Q12 Q57 D22
    Date: 2017
  8. By: Rajapaksa, Darshana; Islam, Moinul; Managi, Shunsuke
    Abstract: The impact of natural disasters on inclusive growth has received little attention from empirical analyses compared to the attention focused on other growth parameters. Thus, this study considers country-level panel data (108 countries over 25 years) and estimates three econometric models to explore the nexus of natural capital depletion and climate-related natural disasters. The results indicate that the impact is nonlinear: there is an inverted ‘U’ shape for small-to-medium level disasters in which natural capital depletion is increasing. The impact of natural disasters is higher when the magnitude of resource depletion is lower or higher. Similarly, trade openness, FDI and GDP growth rate are other important determinants of natural capital. This paper provides insights into how sustainable development can be pursued by means of conserving natural resources in the face of frequent climate-related disasters. It particularly emphasizes the importance of considering small-to-medium size disasters and the threat of disaster in countries with low levels of natural capital depletion.
    Keywords: Natural capital, disaster, inclusive growth, sustainability, semi-parametric panel fixed effect model, fixed effect, quantile regression
    JEL: O1 O11 O13 O44 Q2
    Date: 2017–03
  9. By: Vincent Bertrand
    Abstract: This paper analyses the effect of recognizing co-firing coal with biomass as a renewable energy sources (RES) so as to meet the mandatory obligations in electricity. We provide simulations for the French and German electricity mix, with investigations about consequences for cost savings in the power sector and CO2 emissions. Results indicate that, if co-firing is recognized as a RES, coal would crowd-out traditional RES, not only with increased generation from existing coal plants, but also with additional investments in coal that would be substituted for traditional RES. Investments in coal may be more significant in France than in Germany, which may correspond to adding up to 243% of coal capacity in French electricity by 2030, whereas the same progression is 27% in Germany. Regarding CO2 emissions, we find sharp increases when co-firing is recognized as a RES. The rise is more significant in Germany due to more coal capacities. In the case of France, the magnitude of increased emissions highly depends on the share of nuclear electricity, with fewer increase when old nuclear stations are prolonged. Finally, we find that including co-firing in the set of RES reduces the overall costs associated with managing the power system. We also balanced the cost saving for the power sector with the increased social cost from higher CO2 emissions. Results show that the cost saving is dominated by the increased carbon cost for the society if the carbon valuation is around 100 Euros per tCO2, except in France when old nuclear stations are prolonged.
    Keywords: Co-firing, Biomass, Renewable electricity obligation, Electricity mix, CO2 emissions, Social cost of carbon
    Date: 2017
  10. By: Greer Gosnell
    Abstract: This paper explores the potential for environmental information and dissonance-inducing messaging to encourage resourceful behaviour, following a study of customers of a renewable energy provider in the UK. It uses the manipulation of message framing to analyse behavioural motivators that businesses may consider when encouraging customers – in this case, those who already have revealed environmental preferences – to switch from paper to online communications. In a large-scale natural field experiment comprising 38,654 customers of renewable supplier Good Energy, the author has randomised environmental information and messaging rooted in theories of cognitive dissonance in email communications promoting an active switch to paperless billing. The study finds that environmental information and imagery are ineffective in inducing behaviour change. Interestingly, the dissonance-inducing messaging weakly improves uptake among the main sample but backfires among a sub-sample of individuals with extensive postgraduate education. Contrary to the majority of the literature on gender and environmental behaviour, females in the sample are less likely to switch to paperless billing than males.
    Date: 2017–05
  11. By: Fu, Shihe; Guo, Mengmeng
    Abstract: Using a sample of over 0.3 million marathon runners in 37 cities and 55 races in China in 2014 and 2015, we estimate the air pollution elasticity of finish time to be 0.041. Our causal identification comes from the exogeneity of air pollution on the race day because runners are required to register a race a few months in advance and we control for city fixed effects, seasonal effects, and weather condition on the race day. Including individual fixed effects also provides consistent evidence. Our study contributes to the emerging literature on the effect of air pollution on short-run productivity, particularly on the performance of athletes engaging outdoor sports and other workers whose jobs require intensive physical activities.
    Keywords: Air pollution; marathon; outdoor behavior; mega events; short-run productivity
    JEL: I18 Q53 R11 Z10
    Date: 2017–05–31
  12. By: Harro van Asselt (Stockholm Environment Institute)
    Abstract: This report investigates the implications of regionalism for the interaction between trade and climate policy. It examines the implications of regional climate governance for international trade and conversely the implications of regional trade governance for climate change action. Regional approaches to climate change governance are discussed with a specific focus on the rise of “climate clubs” and their implications for international trade. Moreover, regional trade agreements and their current environmental provisions related to climate change are also examined. Building on these analyses, this report explores the various ways in which regional trade agreements could address climate change objectives, and draws lessons from recent developments in regional trade governance for the further evolution of such agreements.
    Keywords: climate clubs, climate coalitions, free trade agreements, regional trade agreements, Trade and environment
    JEL: F13 F18 Q54 Q56 R11
    Date: 2017–05–31
  13. By: Bogna Janik (WSB University in Poznan, Poland)
    Abstract: Banks play an important role connected with financing pro-ecological investments made by enterprises. They support pro-ecological activities of the entities applying for financing or offer saving/investment products relating to the environmental impact. In terms of their external pro-ecological activities there can be distinguished two groups of banks. The first group offers a wide selection of products and pro-ecological services as well as uses the tools of environmental risk management. The second group concentrates on offering selective products and services as well as is active in the area of pro-ecological marketing. The main objective of the study is to identify and assess some chosen aspects of ecological activities of the banks listed on Stock Exchanges in CEE countries and included in sustainable indices such as: RESPECT, CEERIUS and VONIX. The scope of this analysis encompasses selected dimensions illustrating banks’ activities in terms of environmental protection. The analysis of the investigated dilemma was based mainly on the desk research of digital and documentary sources. The results indicate relatively huge differences across environmental care in value-based banks compared to conventional banks, and small differences between value-based banks themselves.
    Keywords: value-based banking, social banking, environmental care, sustainable indices
    JEL: G21 Q01 Q56
    Date: 2017–05
  14. By: Rehman, Salma; Hussain, Zaki
    Abstract: India has set colossal renewable energy (RE) targets (achieving 175GW of renewable energy capacity by 2022) which need a clear strategy roadmap, integrated planning and a whole-of-system approach. However, the loopholes in institutional mechanisms are bound to hinder the process of policy formulation and implementation for the aspired quantum leap. This paper is an attempt to observe governance of renewable energy in India while exploring the issues and challenges that have been stalling the process of clean energy uptake. The paper finds that despite the comprehensive policy and regulatory frameworks, the large disconnect between the central policies and regional needs has created barriers for deployment of renewable technologies. The paper emphasizes the provision for clean energy financial support to be made available to the states for addressing the disparities between RE potential and the development cost, and planning for better grid management systems. The RE targets also demand an intensive capital market development and innovative financial support mechanisms and products. While aligning itself with the clean energy goals, India needs to focus significantly on the energy needs of the rural population which has been grappling with electricity cuts and brownouts. For regions with limited or no electricity supply, the government should aggressively promote the ideas of off-grid solar power and micro grids. The paper also recommends the possibilities for private sector investments, rural entrepreneurship and public- private ventures for filling in the gaps, and thus harnessing the potential of RE-rich states.
    Keywords: Renewable Energy, UN Sustainable Development Goals (SDGs), India, Clean Energy, Grid integration, Solar Mission, NAPCC, Climate change, Rural electrification
    JEL: Q2 Q20 Q28 Q5 Q50 Q56 Q58
    Date: 2017–01–26
  15. By: François Cohen; Antoine Dechezlepretre
    Abstract: In this paper the authors examine the heterogeneous impact of temperature shocks on mortality across income groups in Mexico using individual death records (1998–2010) and Census data. Random variation in temperatures is responsible for the death of around 45,000 people every year in Mexico, representing 8 per cent of deaths in the country. However, 88 per cent of weather-related deaths are induced by mildly cold days (of 10–20°C), while extremely hot days (over 32°C) kill a comparatively low number of people (less than 400 annually). Moreover, mildly cold temperatures only kill in the bottom half of the income distribution. The authors show that the Seguro Popular, a universal healthcare policy progressively rolled out during the sample period, reduced cold-related mortality among the poor by about 30 per cent.
    Date: 2017–05
  16. By: Natalia Vukovic (Ural State Forest Engineering University, Russia); Andrey Mehrentsev (Ural State Forest Engineering University, Russia); Evgeny Starikov (Ural State Forest Engineering University, Russia)
    Abstract: Traditional energy sources based on oil, coal, and natural gas have proven to be highly effective, but at the same time they have many negative environmental effects. Also by technical and economical points traditional energy sources are not available in many remote areas. In this paper, the authors have been discussed the alternative approach in energy supply, which also has positive social-economic and environmental effects. This paper provides a new solution for energy supply in remote areas by implementing bioenergy based on woodchips, which has multi-sector effects. Bioenergy generation based on woodchips has multi-sector effect that is why authors offer to combine forest cleaning cutting and forest thinning with bioenergy based on woodchips in one project which will have social, economic and ecological effects. The situation with forest fires makes the authors idea more attractive because after forest fires the problem of cleaning cutting in forest became very important and urgent by ecological and economical points: after cleaning cutting there are a lot of low quality wood which by author’s idea can be recycled into chips for bioenergy. This methodology has been applied to bioenergy and regional development decisions in remote areas which mainly have a problem with energy provision; it is suitable for applications to infrastructure development projects in any remote forested region of the world. Mobile bioenergy generation based on woodchips in remote areas settle the complex of environmental, social, economic problems and can become the driver of development of the region.
    Keywords: bioenergy, woodchip, cleaning cuttings, forest thinning, remote areas development
    JEL: O44 P28 Q01 Q42
    Date: 2017–05
  17. By: Muhammad Irfan (University of Waikato); Michael P. Cameron (University of Waikato); Gazi Hassan (University of Waikato)
    Abstract: This study aims to estimate the fuel expenditure and price elasticities of household fuels in Pakistan. Burning of wood, animal dung, and crop residues are harmful to health and may cause preventable morbidity and mortality in developing countries. Forests, natural gas and other energy reserves are depleting. It is important to investigate how households’ fuel choices are linked to prices, so that governments can consider appropriate steps to enhance the consumption of clean fuels and discourage the use of solid fuels. In this paper we pooled three Pakistan Social and Living Standard Measurement Survey (PSLM) data sets (2007-08, 2010-11 and 2013-14) and applied the Linear Approximate Almost Ideal Demand System (LA-AIDS) model to investigate the price and expenditure elasticities at urban, rural, and national levels. We found that all fuel types except natural gas were price inelastic at the national level and for urban households, implying that changes in prices lead to comparatively lesser changes in quantity demanded of most fuels. In rural areas, natural gas and LPG were found to be more price elastic compared with urban areas. Fuel expenditures elasticities for all fuels were found to be positive and between zero and one. Simple policy simulations based on our results suggest that in order to reduce the indoor air pollution, governments should subsidise clean fuels rather than imposing taxes on solid fuels.
    Keywords: household energy; elasticities; LA-AIDS; Pakistan
    JEL: O13 P28 Q41
    Date: 2017–05–23
  18. By: Hasson, Ashwaq; Masih, Mansur
    Abstract: This paper undertakes to investigate the interplay between economic growth, energy consumption, electricity consumption, carbon emission and trade by employing recent South African trade and energy data during the period from 1971 to 2013. South Africa is used as a case study given its status as perhaps the most developed country in the African continent with a very high energy consumption as well as its unique position in its current history where it relies on the somewhat antiquated coal industry to provide most of its energy as well as being one of its main imports. The effect of trade openness on environmental conditions has spawned a great deal of controversy in the current energy economics literature. Although research on the relationship between energy consumption, carbon emissions and economic growth are quite prevalent, no study to our knowledge specifically addresses the role that South Africa’s trade plays in this context. The ARDL bounds testing approach to cointegration has been used to test the long run relationship among the variables, while short run dynamics has been investigated by applying error correction method (ECM). The main finding of interest in this paper is that a positive relationship exists between energy consumption and economic growth. However, it seems the results suggest that electricity prices have a negative impact on economic growth. The results further evidenced that trade openness and electricity are leading variables, while the rest are lagging. Furthermore, our results demonstrate trade reduces overall pollutions caused by carbon emission, thus it improves environmental quality by contracting the growth of energy pollutants. Our empirical results are consistent with the existence of environmental Kuznets curve. It is, thus, imperative for policymakers to take better care of these two exogenous variables that will have a profound effect on the country’s economy as a whole. The policymakers should make decision on GDP based on trade openness because changes in trade openness will have impact on GDP, as trade is a leading variable.
    Keywords: GDP, Energy consumption, Trade openness, EKC, Carbon Emission, South Africa
    JEL: C58 E44 G15
    Date: 2017–05–13
  19. By: Elodie Letort; Pierre Dupraz; Laurent Piet
    Abstract: Nitrate pollution remains a major problem in some parts of France, especially in the Brittany region, which is characterized by intensive livestock production systems. Although farmers must not exceed a regulatory limit of nitrogen contained in manure per hectare, many farmers in this region exceed this limit. Therefore, they must treat the excess of manure that they produce or export it to be spread in neighbouring farms and/or areas, inducing fierce competition in the land market. Another adaptation strategy consists of modifying production practices or the production system as a whole, i.e., changing the structure of the farm. In this paper, a spatial agent-based model (ABM) has been developed to assess policy options in the regulation of manure management practices. The objective is to highlight the potential effects of these policies on the farmland market and the structural changes that they induce. Our results show that the different policies, which result in similar environmental benefits, induce different changes in the land market and in agricultural structures.
    Keywords: Q15, C63, D22
    JEL: Q15 C63 D22
    Date: 2017
  20. By: Qaadny Amir (Poznan University of Economics and Business, Poland)
    Abstract: In recent years, the number of new entrepreneurs has been growing particularly among young people and minorities. The young minority entrepreneur is a distinct sub-set within the category of young entrepreneurs because he faces additional social and cultural barriers, limited economic and resource access and availability, discrimination and even outright racism not experienced by mainstream entrepreneurs. In this review, we have found it necessary to distinguish between two groups of minorities: the ‘immigrant minority’ and the ‘local ethnic minority’ who might or might not be a numerical minority but who live under the constraints of a ruling hegemony, a distinction which has profound consequences on entrepreneurial activity. To provide an overview of the updated understanding of the young minority entrepreneur as well as to refine some critiques. This article is based on a review of nearly one hundred academic papers, reports, and books in the field. Entrepreneurship can be the result either of a free positive choice or a necessary escape strategy of survival for those who have no option of salaried work opportunities. It brings into play personal traits, education and environmental support or constraints.
    Keywords: young entrepreneurs; minority; personal and traits characteristics; socio-cultural aspects; environmental constraints
    JEL: L26 J15
    Date: 2017–05
  21. By: Voloshinskaya, Anna A. (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Komarov, Vladimir M. (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Kotsyubinskiy, Vladimir A. (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: It is shown that the ideology and strategy of socio-economic development can be based on the paradigm of sustainable development. This implies an increase of the national wealth as stocks of capital (human, natural, physical, social, cultural and structural) in time. The paper proposes measures for Russia's transition to the paradigm of sustainable development.
    Date: 2017–02
  22. By: Curtis, John
    Abstract: This paper examines anglers' preferences for active stock management of pike populations within designated wild brown trout fisheries in Ireland. While the policy of pike control has a long history, it is not without controversy and conflict. As the objective of pike control is the protection of trout stocks, a superficial view might be that trout anglers favour and pike anglers oppose such management intervention. Pike and trout anglers do not have homogeneous preferences; in fact, a substantial minority of pike anglers also fish for trout and vice versa. The current paper is the first to examine Irish pike and trout anglers' preferences over fishery attributes, including pike stock control methods. Preference data was elicited by means of choice experiments for pike and trout anglers and a latent class site choice model is used to estimate anglers' utility functions. Not surprisingly model results show that pike anglers do not support pike stock control and almost universally would choose fishing sites where there are no pike stock controls, all else equal. We find that the majority of trout anglers, 61%, are negatively disposed towards pike stock control, and all else equal, are more likely to choose fishing sites where pike stocks are not actively managed. A substantial minority of trout anglers (i.e. 39%) could be considered advocates of pike control, with about one-third of these being more extreme in their preferences, with site choice probabilities of such anglers being largely determined by the pike control management option.
    Date: 2017–05
  23. By: Talat S. Genc (Department of Economics, University of Guelph, Guelph ON Canada); Stanley S. Reynolds (Department of Economics, University of Arizona, Tucson, Arizona 85721 USA)
    Abstract: We investigate the market implications of ownership of a new low-cost production technology. We relate our theoretical findings to measuring the impact of renewable energy penetration into electricity markets and examine how the ownership of renewable capacity changes market outcomes (prices, outputs, emissions). As the current public policies influence the renewable energy ownership, this research provides useful insights for policy makers. We show that ownership of renewable capacity will matter when there is market power in energy market. We apply our findings to the Ontario wholesale electricity market to analyze the impact of different ownership structures for wind capacity expansions. We show that consumers enjoy better air quality under the largest firm's ownership, but at the expense of higher prices. We find that market structure and the shape of generation cost functions are the key drivers explaining the impact of renewable ownership on market outcomes.
    Keywords: Market structure, technology ownership, renewable energy, greenhouse gas emissions
    JEL: D4 L1 Q5 Q4 Q2
    Date: 2017
  24. By: Amsler, Christine; Prokhorov, Artem; Schmidt, Peter
    Abstract: This paper considers a stochastic frontier model that contains environmental variables that affect the level of inefficiency but not the frontier. The model contains statistical noise, potentially endogenous regressors, and technical inefficiency that follows the scaling property, in the sense that it is the product of a basic (half-normal) inefficiency term and a parametric function of the environmental variables. The environmental variables may be endogenous because they are correlated with the statistical noise or with the basic inefficiency term. Several previous papers have considered the case of inputs that are endogenous because they are correlated with statistical noise, and if they contain environmental variables these are exogenous. One recent paper allows the environmental variables to be correlated with statistical noise. Our paper is the first to allow both the inputs and the environmental variables to be endogenous in the sense that they are correlated either with statistical noise or with the basic inefficiency term. Correlation of inputs or environmental variables with the basic inefficiency term raises non-trivial conceptual issues about the meaning of exogeneity, and technical issues of estimation of the model.
    Keywords: environmental variables; stochastic frontier; endogeneity
    Date: 2017–04–09
  25. By: Piotr Kulyk (Uniwersytet Zielonogorski); Mariola Michalowska (Uniwersytet Zielonogorski); Paulina Paluszkiewicz (Uniwersytet Zielonogorski)
    Abstract: Research background: Organic farming is a practical response to the ecological consequences of non-organic management of natural resources. Interest in the organic food market is growing both among producers and consumers. What has influenced this is, on the one hand, the demand for organic products, and on the other, the support for organic farming from the national budget and the budget of the European Union. Purpose of the article: In the article we have shown an attempt to identify the key factors influencing the development of the organic food market as well as the state of organic farming in Poland compared to individual European Union countries. Particular attention has been paid to the mechanisms of support for organic farming that enables farmers to keep a farming system based on ecological production methods not disturbing natural environmantal balance and allowing to undertake activities that are particularly beneficial for environmental protection ensuring the continuance and development of present and future generations. Seeking justification for the promotion of organic agricultural producers a reference has been made to the market failure, with particular emphasis on the problems of socio-economic development. Methodology/methods: The conditions for the development of the organic food market are shown in the context of the analysis of the literature on the problems of organic farming, the available empirical research, as well as the results of own survey conducted among respondents in Lubuskie Voivodeship and data from the Central Statistical Office, Eurostat and IJHARS. Findings: Polish organic food market is growing rapidly. However its significance in Poland is not great in the total agricultural production. The level and structure of consumption of organic food market is determined by the income of consumers, as well as their increasing environmental awareness. An important element influencing the development of organic farming is a system of support for organic farming.
    Keywords: organic farming, demand factors, supply factors
    JEL: Q56
    Date: 2017–05
  26. By: Tatsuyoshi Saijo (Research Center for Future Design, Kochi University of Technology); Jun Feng (Research Center for Future Design, Kochi University of Technology); Yutaka Kobayashi (Research Center for Future Design, Kochi University of Technology)
    Abstract: Efficient allocations in common-pool resources cannot be accomplished when appropriators are selfish. In addition, we find that a system of a common-pool resource is locally unstable if there are four or more appropriators. Such instability most likely makes efficiency worse than that in the Nash equilibrium. These results indicate that equilibrium analyses might not capture the essence of the common-pool resource problem. They may also provide an answer to the unexplained pulsing behavior among appropriators and inefficiency observed in experiments.
    Keywords: instability, Nash equilibrium, common-pool resources, pulsing behavior, appropriation problem
    JEL: C62 C72 C92 Q22
    Date: 2017–05
  27. By: Gorga, Carmine
    Abstract: Years ago, I recommended that my City, my Polis, Gloucester, MA, never sell its natural resources to any outsider. Last year, with the passing of Fidel Castro, I saw a possibility for Cuba to become finally free. Naturally, I urged Cubans not to repeat the errors made by Russia and China at the collapse of communism; I urged Cubans not to sell their natural resources to the oligarchs, whether local or foreign. This time around, I also urged Cubans not to repeat the political errors of the past, namely trying to correct horrors of the left with horrors of the right; this time around I urged Cubans and anyone else who might want to hear to achieve a revolution from the center of the political system. With the forthcoming elections in Kenya, in the hope of averting the bloodshed that followed the 2007 elections there, I recently felt impelled to enlarge my focus to appeal to every nation in Africa, and the rest of the world for that matter, not to sell their natural resources to foreigners. The financial resources to achieve this goal are the same the world over: One must organize local financial resources, through: 1. Any such instrument as a Local Interdependence Fund; and 2. A reform of central bank operations to issue a) loans only to create real wealth; b) loans at cost; c) loans to benefit as many people as possible, hence loans to individual entrepreneurs, cooperatives, corporations with ESOPs and/or CSOPs, and to public agencies with taxing power to fund public works projects.
    Keywords: D24, E52, E58, F31, F33, G21, G28, G34, K11, K21, N50, O44
    JEL: D24 E52 E58 F31 F33 G21 G28 G34 K11 K21 N50 O44
    Date: 2017–04–21
  28. By: Yasuharu SHIMAMURA (Graduate School of International Cooperation Studies, Kobe University); Hiroshi NISHINO (Metrics Work Consultants Inc); Hirofumi TSURUTA (Namidabashi Lab. Co., Ltd); Keitaro AOYAGI (Metrics Work Consultants Inc)
    Abstract: This study evaluates the effect of a groundwater development project in rural Zambia. Our empirical analysis using a difference-in-differences methodology under an experimental setting reveals that the project reduced the incidence of diarrhea over the past two weeks by 1.6 percentage points among individuals of all age groups and by 5.9 percentage points among children under five. This study, however, simultaneously finds that the impact of the newly constructed water supply facilities is highly likely to be impaired by recontamination of improved source water during transport and storage, which appears further deteriorated by a reduction in the use of water treatment methods at home.
    Keywords: waterborne disease; groundwater development; Zambia; impact evaluation; Japan International Cooperation Agency; development project
    Date: 2017–05
  29. By: Rita Remeikiene (Lithuanian Institute of Agrarian Economics, V. Kudirkos 18-2, 03105, Vilnius, Lithuania); Ligita Gaspareniene (Lithuanian Institute of Agrarian Economics, V. Kudirkos 18-2, 03105, Vilnius, Lithuania)
    Abstract: The increase in the demand for organic products prompts the establishment of green farms. In spite of the large global interest in green farming, scientific literature is not rich in the studies that cover the issues of green farming development. Although previous studies examine different aspects of green business, the factors that facilitate or impede the development of green farming, especially at the national level, are hardly considered. In order to fill this gap in the scientific literature, we formulate the following problem of the research: what opportunities of green farming development can be envisaged in Lithuania? To explore the opportunities of green farming development in Lithuania on the basis of the general features of green business development. Comparative and systematic analysis of the scientific literature, graphic and comparative data analyses, and expert evaluation. The researched has enabled to identify the factors that facilitate and impede green farming development in Lithuania. On the basis of the results of the expert evaluation, the recommendations for green farming development in Lithuania were provided. It was found that the main barriers that disturb smooth development of green farming in Lithuania mainly include economic and social obstacles. Frequently changing regulations on organic farming, complicated procedures of green farming certification and lack of information about the support and subsidies call for the development of a consistent green farming monitoring system and conduct of the efficient green market research. Extensive networking systems would provide the opportunities for green farmers to share their experience and observe all the economic changes: new market niches, demand-supply indicators, new channels of product delivery, etc. Non-financial green farming support measures (e.g. consultations, training, provision of information, etc.) could substantially contribute to the development of green farming in Lithuania.
    Keywords: green business, green farming, organic foods, Lithuania.
    JEL: Q13
    Date: 2017–05
  30. By: -
    Date: 2017–05–01
  31. By: Williams, John C. (Federal Reserve Bank of San Francisco)
    Abstract: Presentation to the Symposium on Asian Banking and Finance, Singapore, Singapore , by John C. Williams, President and CEO, Federal Reserve Bank of San Francisco, May 29, 2017.
    Date: 2017–05–31

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