|
on Environmental Economics |
|
Issue of 2017‒11‒05
thirty-two papers chosen by Francisco S. Ramos Universidade Federal de Pernambuco |
| By: | Armon Rezai; Rick van der Ploeg |
| Abstract: | Temperature responses and optimal climate policies depend crucially on the choice of a particular climate model. To illustrate, the temperature responses to given emission reduction paths implied by the climate modules of the well-known integrated assessments models DICE, FUND and PAGE are described and compared. A dummy temperature module based on the climate denialists’ view is added. Using a simple welfare-maximising growth model of the global economy, the sensitivity of the optimal carbon price, renewable energy subsidy and energy transition to each of these climate models is discussed. The paper then derives max-min, max-max and min-max regret policies to deal with this particular form of climate (model) uncertainty and with climate scepticism. The max-min or min-max regret climate policies rely on a non-sceptic view of global warming and lead to a substantial and moderate amount of caution, respectively. The max-max leads to no climate policies in line with the view of climate sceptics. |
| Keywords: | carbon price, renewable energy subsidy, temperature modules, climate model uncertainty, climate sceptics, max-min, max-max, min-max regret |
| JEL: | H21 Q51 Q54 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_6626&r=env |
| By: | A.A. Yusuf; E.L. Roos; J.M. Horridge |
| Abstract: | Palm oil has become increasingly important in Indonesian export. Indonesian economic growth, particularly in forest-rich regions of the country depends on the expansion of palm oil production. On the other hand, the Indonesian government is committed to reduce carbon emissions from land use change to which the conversion from natural forest to palm oil has greatly contributed. Indonesia introduced a moratorium of conversion from natural forest to palm oil land. Using a dynamic, bottom-up inter-regional computable general equilibrium of the Indonesian economy, we assess several scenarios of the moratorium and discuss its impact on the national as well as regional economy. The results suggest that the moratorium reduces Indonesian economic growth, and other macroeconomic indicators, but international transfers ($10/tCO2 emissions avoided) can more than compensate the welfare loss. However, the impact varies across regions. Sumatera which is highly-dependent on oil palm; of which its economy is less broad-based and its carbon stock of its forest is no longer high, receives fewer transfers and suffer a great economic loss. In the meantime, Kalimantan which is relatively less dependent on oil palm than Sumatera and its forest carbon stock is still high, receives more transfers and get greater benefit. This result suggest that additional policy measures anticipating the unbalanced impact of the transfers is required if the trade-off between conservation and reducing inter-regional economic disparity needs to be reconciled. |
| Keywords: | palm oil, carbon emissions, computable general equilibrium, Indonesia |
| JEL: | R10 R11 R13 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:cop:wpaper:g-276&r=env |
| By: | Laure Thierry de Ville d'Avray (Aix-Marseille Univ. (Aix-Marseille School of Economics), CNRS, EHESS and Centrale Marseille); Dominique Ami (Aix-Marseille Univ. (Aix-Marseille School of Economics), CNRS, EHESS and Centrale Marseille); Anne Chenuil (Aix Marseille Univ., Univ Avignon, CNRS, IRD, IMBE UMR 7263); Romain David (Aix Marseille Univ., Univ Avignon, CNRS, IRD, IMBE UMR 7263); Jean-Pierre Féral (Aix Marseille Univ., Univ Avignon, CNRS, IRD, IMBE UMR 7263) |
| Abstract: | In an era when we witness the erosion of biodiversity it is essential to understand the benefits provided by ecosystems and find ways to maintain them. The concept of ecosystem service has been applied in this perspective, but mainly in large-scale surveys and on terrestrial ecosystems. The primary objective of this project is to validate the inclusion of the concept of ecosystem service as a useful input to local (small-scale) community decision making in the marine environment. A second objective is to define the beneficial services provided to local areas by the coralligenous habitats. The application of the concept of ecosystem service at a local scale is more appropriate to local regulatory and management issues. This research was focused on the complex and threatened coralligenous habitats, about which the benefits and services provided are relatively little understood. To address these issues and get around the paucity of prior research, we collected the opinions of 43 experts for two marine sites (Bay of Marseille and Port-Cros National Park) on 15 services using interviews, an online questionnaire and workshops. This work validated 10 services: the most evident were "food", "diving sites", "research" and "inspiration". We also showed that even in very close-by sites, slight differences in the bundle of services may occur, and we highlighted knowledge gaps especially concerning those services (so-called regulating services) that help to regulate environmental impacts of other phenomena. This work concluded that there is a strong need to employ a referential frame to identify and then estimate services based on local criteria such as: geographical and temporal scale, size of the population of beneficiaries, value of the benefits, and state of ecosystem well-being. These results are a basis for further evaluation of these ecosystem services and can indicate their positive contribution to local decision-making concerning the regulation and management of coralligenous habitats. |
| Keywords: | experts knowledge, Marseille, Port-Cros, appraisals, interviews, workshops, questionnaire, coralligenous habitats, ecosystem services, local-scale, concept application |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:aim:wpaimx:1738&r=env |
| By: | Julien Xavier Daubanes; Fanny Henriet; Katheline Schubert |
| Abstract: | We examine an open economy’s strategy to reduce its carbon emissions by replacing its consumption of coal—very carbon intensive—with gas—less so. Unlike the standard analysis of carbon leakage, unilateral carbon-reduction policies with more than one carbon energy source may turn counter-productive, ultimately increasing world emissions. Thus, we establish testable conditions as to whether a governmental emission-reduction commitment warrants the exploitation of gas, and whether such a strategy increases global emissions. We also characterize the extent to which this unilateral policy makes the rest of the world’s emission commitments more difficult to meet. Finally, we apply our results to the case of the US. |
| Keywords: | unilateral climate policy, carbon emission reduction, shale gas, gas-coal substitution, coal exports, carbon leakage, US policy, counter-productive policy |
| JEL: | Q41 Q58 H73 F18 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_6697&r=env |
| By: | Bukvić, Rajko; Pajović, Ivan |
| Abstract: | English. The article considers the problem of pollution and destruction of environment, especially the pollution of atmosphere. Within these, problems of the carbon concentration, i.e. greenhouse gases, are considered as one of the main results of the anthropogenic activities, and consequently one of the main causes of the global climate change. In the second half of the XX century many schemes for involving market mechanism in solving these problems were proposed. These efforts especially increased in the last decade of XX century and finally the Kyoto Protocol supported many flexible mechanisms, as a solution for these problems. In spite of all these efforts, during the first period of its implementation (2008–2012) the emissions of carbon were increased. Experiences with market, not only in this sector, leave the problem unresolved: is the market universal solution. Russian. В статье рассматриваются проблемы загрязнения и разрушения природной среды, особенно атмосферы. Следовательно, проблемы концентрации углерода, т.е. парниковых газов рассматриваются как одно из основных последствий антропогенной деятельности, а также одной из основных причин глобального изменения климата. Во второй половине 20-го века было предложено применение многих схем создания рыночних механизмов решения этих проблем. Несмотря на все эти усилия, в течение первого периода их осуществления (2008-2012 годы) выброс углерода вырос. Прошлый опыт, не только в этой области, оставляет открытым вопрос: является ли рынок универсальним решением. |
| Keywords: | greenhouse gases (GHG), the Kyoto Protocol, carbon markets, flexible mechanisms, regional schemes парниковые газы, Киотский протокол, рынки углерода, гибкие механизмы, региональные схемы |
| JEL: | H23 K32 L50 L51 Q53 Q56 R11 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:82099&r=env |
| By: | Shota Moriwaki |
| Abstract: | The purpose of this study is to measure agricultural waste and estimate the environmental Kuznets curve in four East Asian countries using time series data from the 1960s to the 2010s. Positive nutrient balance (NB) suggests there is pressure on arable land, causing water pollution and greenhouse gases. For crop farming, only China's NB per arable land unit (NBAL) has risen recently, while NB per product (NBP) in all four countries has declined. Regarding livestock farming, NBAL in all countries except Japan has risen. Even more recently, China's NBP has risen differently to other countries' movements. The estimation results of the environmental Kuznets curve suggest China's NBAL will rise continuously with gross domestic product per capita increases in crop farming. For livestock farming, the estimated indexes are confirmed to have worsened with the advance of economic growth. |
| Keywords: | nutrient balance, farm gateway method, environmental Kuznets curve, breaking point unit-root test, non-linear co-integrating |
| Date: | 2017–09–11 |
| URL: | http://d.repec.org/n?u=RePEc:een:appswp:201734&r=env |
| By: | Suchita Srinivasan |
| Abstract: | Are environmental regulations imposed on downstream firms effective in spurring innovation in clean technologies by upstream firms? We use a novel firm-level dataset of global scope to study whether environmental regulations have percolated up the automotive global value chain, and led to innovation (measured by patenting in abatement technologies) by suppliers at different levels of the chain. Using a Poisson estimation methodology, we find that suppliers worldwide have responded to increasingly stringent emission standards imposed on automobile manufacturers (also known as original equipment manufacturers, or OEMs) by undertaking more innovation in clean abatement technologies; additionally, we find that the smaller the gap between the average environmental regulation suppliers face from the OEMs,and that in the country where the firm is located, the more the firm innovates. In addition, we provide evidence of a spread of these positive effects of regulation on innovation, with suppliers at different upstream levels responding positively to the downstream standards. This paper has important policy implications for the design of environmental policy instruments to induce innovation in clean technologies by firms along the value chain. |
| Keywords: | Environmental Regulation; Global Value Chains; Patents; Automotive Industry |
| JEL: | Q55 O31 Q58 F23 |
| Date: | 2017–06–14 |
| URL: | http://d.repec.org/n?u=RePEc:gii:ciesrp:cies_rp_52&r=env |
| By: | Joaquim Bento de Souza Ferreira Filho; Mark Horridge |
| Abstract: | We analyze the Brazilian commitments to COP21 under different scenarios, with a general equilibrium model of Brazil developed for land use change and GHG emissions analysis. The model is dynamic, inter-regional and bottom-up, and here distinguishes 16 regions and 6 biomes. We simulate different scenarios of future deforestation, including the halt of illegal deforestation, the restoration of 12Mha of forests, and replacing deforestation in the Amazon biome by deforestation in the Cerrado biome. Our analysis shows that the restoration of 12 Mha of forests would be enough to meet Brazil's 2025 commitments with no other extra GHG savings efforts, but would not meet 2030 commitments. Exchanging deforestation in the Amazon biome for deforestation in the Cerrado biome would seriously compromise the accomplishment of the targets. We note that emissions in the general economy are increasing in Brazil, suggesting that other efforts must be made to meet the COP21 targets. |
| Keywords: | Brazil, deforestation, CO2, Cerrado, Amazon |
| JEL: | C68 D58 E47 Q53 Q54 R14 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:cop:wpaper:g-274&r=env |
| By: | Lars Sorge; Anne Neumann |
| Abstract: | This paper analyzes the dynamic relationship between CO2 emissions, energy consumption, GDP, and trade-openness from 1971 to 2013, based on the Environmental Kuznets Curve (EKC) hypothesis for 70 WTO countries. Using recently developed secondgeneration panel data methods, the empirical results support the EKC hypothesis for the high-, middle-, and lower-income panels used. Concerning the energy consumption and economic growth nexus, the causality results support the conversion hypothesis for the high-income panel, whereas the neutrality hypothesis holds for the lower- and middle-income panels. Based on the causality results, trade-openness does not positively impact CO2 emissions, GDP leads CO2 emissions, and trade-openness causes energy consumption within any income panel. The net effect of economic growth, however, could help to stabilize future CO2 emissions within any income panel. |
| Keywords: | Environmental Kuznets Curve, CO2 emissions, energy consumption, economic growth, trade-openness, Granger causality, second-generation panel data methods |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1699&r=env |
| By: | Guy Meunier; Juan-Pablo Montero; Jean-Pierre Ponssard |
| Abstract: | Output-based allocations (OBAs) are typically used in emission trading schemes to mitigate leakage in sectors at risk. Recent work has shown they may also help to stabilize prices in markets subject to supply and demand shocks. We extend previous work to simultaneously include both leakage and volatility. Motivated by discussions on how to reform carbon markets around the world, and in Europe in particular, we use our model to revisit several critical issues in the design of these markets. In particular, we look at how different OBA schemes manage permit price uctuations and what are the implications of deducting OBA permits (the majority going to trade-exposed and carbon intensive sectors) from the overall permit allocation, so as to keep the global cap on emissions fixed (as it is the case in California and in the EU). |
| Keywords: | pollution markets, carbon price volatility, output-based allocations |
| JEL: | D24 L13 H23 L74 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_6334&r=env |
| By: | Wolfgang Habla; Ralph Winkler |
| Abstract: | We analyse a principal-agent relationship in the context of international climate policy. Principals in two countries first decide whether to merge domestic emission permit markets to an international market, then delegate the domestic permit supply to an agent. We find that principals select agents caring less for environmental damages than they do themselves in case of an international market regime, while they opt for self-representation in case of domestic markets. This strategic delegation incentive renders the linking of permit markets less attractive and constitutes a novel explanation for the reluctance to establish non-cooperative international permit markets. |
| Keywords: | non-cooperative climate policy, political economy, emissions trading, linking of permit markets, strategic delegation, strategic voting |
| JEL: | D72 H23 H41 Q54 Q58 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_6515&r=env |
| By: | Diallo, Abdoulaye Kindy; Masih, Mansur |
| Abstract: | This paper explores the influence of economic and financial development on carbon emissions in the United Arab Emirates. The study uses the ARDL approach in order to investigate the long run relationship between carbon emissions and a set of economic and financial variables. The long-run and short-run Granger-causal directions are captured through the Error Correction Model (ECM). In order to determine the relative contributions of economic and financial variables to the evolution of per capita carbon emissions, variance decomposition is used. The period considered for the purpose of this study is the full sample (1975–2013). To the best of our knowledge there is no study in this kind focusing only on the United Arab Emirates. Hence we are attempting an humble contribution with this regards. The findings tend to suggest that there is a decline of CO2 emissions in the long run. Also, considering the error correction model output, we can argue that the financial variables, especially the domestic credit to private sector, have an impact in CO2 emissions. This finding is in line with that of Shahbaz et al. (2013) who found out through two different studies (South Africa and Malaysia) that private sector credit had a reducing impact on CO2 emissions. |
| Keywords: | CO2 emissions, United Arab Emirates, Financial development, FDI, GDP, VECM ARDL |
| JEL: | C22 C58 Q56 |
| Date: | 2017–06–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:82054&r=env |
| By: | Hans Gersbach; Noemi Hummel; Ralph Winkler |
| Abstract: | We examine long-run treaties for mitigating climate change. Countries pay an initial fee into a global fund that is invested in long-run assets. In each period, part of the fund is distributed among the participating countries in relation to the emission reductions they have achieved in this period suitably rescaled by a weighting factor. We show that a suitably selected refunding scheme implements the globally optimal reductions of greenhouse gases in all periods as a unique subgame perfect equilibrium. The country-specific initial fees can be chosen to engineer a Pareto improvement and to ease participation. We also show that any planned abatement path as e.g. the one envisioned by the Paris Agreement in 2015 can be implemented by an appropriately chosen refunding scheme. Finally, we suggest ways for countries to raise money for the payment of initial fees that are neutral to tax payers and international capital markets. |
| Keywords: | climate change mitigation, refunding scheme, international agreements, sustainable treaty |
| JEL: | Q54 H23 H41 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_6385&r=env |
| By: | Venkatachalam Anbumozhi (Economic Research Institute for ASEAN and East Asia (ERIA)); Xianbin Yao |
| Abstract: | In East Asia, the path of economic integration that started at the end of World War II, through catch-up industrialization, took a distinguished path. Started in Japan and supported by diffusion of technologies through learning and easier relocation of industries within the region, energy intensive industrialization expanded into countries with fewer development operations. Aided by official development assistance and foreign direct investment, the emergence of production networks across Southeast and East Asia permitted second- and third-tier economies to catch up with advanced economies in technology, technical skill development, and narrow the development gaps. The pattern of East Asia's catch-up has been extensively studied, with the 'Flying Geese' model being the well-known paradigm. This process of catch-up also leads to increased emissions and air, water, and soil pollutions, and to movement of emission intensity and pollutions to second- and third-tier economies. From the perspective of the energy-development nexus, does it mean that East Asia's growth pattern still could not break away from the historical path dependency in energy-intensive industrialization observed elsewhere? This and the following questions are pursued in the paper: What factors lead to the emergency and subsequent dispersal of the 'flying geese'? What were the main characteristics of integrated environmental and energy policy formulation during the dispersal, and what lessons could be learned from those experiences for sustainable future? To our knowledge, this paper is the first such direct attempt to understand the link between the Flying Geese model and energy policies in East Asian economic development. Using the historical data on trade and energy consumption, we demonstrate that East Asian governments have proactively addressed energy intensity concerns, and have further intensified the policy. We also draw lessons learned from the model for its potential application in solving global sustainability challenges. |
| Keywords: | Economic history, energy policy, industrialization, production networks,sustainability |
| JEL: | F01 F14 N10 |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:dp-2017-08&r=env |
| By: | Montoya Gómez, Ana Maria; Zimmer, Markus |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc17:168273&r=env |
| By: | Reyer Gerlagh; Richard Jaimes; Ali Motavasseli |
| Abstract: | Between 1950 and 2017, world average life expectancy increased from below-50 to above-70, while the fertility rate dropped from 5 to about 2.5. We develop and calibrate an analytic climate-economy model with overlapping generations to study the effect of such demographic change on capital markets and optimal climate policies. Our model replicates findings from the OLG-demography literature, such as a rise in households’ savings, and a declining rate of return to capital. We also find that demographic change raises the social cost of carbon, at 2020, from 28 euro/tCO2 in a model that abstracts from demography, to 94 euro/tCO2 in our calibrated model. |
| Keywords: | climate change, social cost of carbon, environmental policy, demographic trends |
| JEL: | H23 J11 Q54 Q58 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_6617&r=env |
| By: | Erik Roos Lindgreen; Milan van Schendel; Nicole Jonker; Jorieke Kloek; Lonneke de Graaff; Marc Davidson |
| Abstract: | Purpose: Consumers in the Netherlands made more than 3.2 billion debit card transactions at points-of-sale in 2015, corresponding to over half of all point-of-sale payments in that year. This study provides insights into the environmental impact of debit card transactions based on a life cycle assessment (LCA). In addition, it identifies several areas within the debit card payment chain where the environmental impact can be reduced. Conclusions: For the first time, the environmental consequences of electronic card payment systems are evaluated. The total environmental impact of debit card transactions in the Netherlands is relatively modest compared to the impact of cash payments, which are the closest substitute of debit card payments at the point-of-sale. Scenario analysis indicates that the environmental impact can be reduced by 44%. |
| Keywords: | Datacentre; Debit card payment system; Debit card; Environmental impact; LCA; Payment terminal |
| JEL: | E42 Q50 |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:574&r=env |
| By: | L. Lambertini; G. Leitmann |
| Abstract: | We reformulate the Verhulst-Lotka-Volterra model of natural resource extraction under the alternative assumptions of Cournot behaviour and perfect competition, to revisit the tragedy of commons vs the possibility of sustainable harvesting. We stress the different impact of demand elasticity on the regulator’s possibility of driving industry harvest to the maximum sustainable yield in the two settings. The presence of a flat demand function offers the authority a fully effective regulatory tool in the form of the exogeneous price faced by perfectly competitive firms, to drive their collective harvest rate at the maximum sustainable yield. The same cannot happen under Cournot competition, as in this case the price is endogenous and the regulator’s policy is confined to limiting access to the common pool. |
| JEL: | C73 L13 Q20 Q28 |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:bol:bodewp:wp1112&r=env |
| By: | Diana De Alwis; Ilan Noy |
| Abstract: | We measure to cost of extreme weather events (droughts and floods) on health care in Sri Lanka. We find that frequently occurring local floods and droughts impose a significant risk to health when individuals are exposed directly to these hazards, and when their communities are exposed, even if they themselves are unaffected. Those impacts, and especially the indirect spillover effects to households that are not directly affected, are associated with the land-use in the affected regions and with access to sanitation and hygiene. Finally, both direct and indirect risks associated with flood and drought on health have an economic cost; our estimates suggest Sri Lanka spends 52.8 million USD per year directly on the health care costs associated with floods and droughts, divided almost equally between the public and household sectors, and 22% vs. 78% between floods and droughts, respectively. In Sri Lanka, both the frequency and the intensity of droughts and floods are likely to increase because of climatic change. Consequently, the health burden associated with these events is only likely to increase, demanding precious resources that are required elsewhere. |
| Keywords: | Sri Lanka, flood, drought, health impact |
| JEL: | I15 Q54 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_6520&r=env |
| By: | Bayramoglu, Basak; Finus, Michael; Jaques, Jean-Francois |
| Date: | 2016–07–18 |
| URL: | http://d.repec.org/n?u=RePEc:eid:wpaper:58130&r=env |
| By: | Achim Hagen (Humboldt-Universität zu Berlin); Jan Schneider (Carl von Ossietzky University Oldenburg) |
| Abstract: | In spite of scientific agreement on the negative effects of anthropogenic climate change, efforts to find cooperative solutions on the international level have been unsatisfactory so far. Trade sanctions in the form of import tariffs are one principal measure discussed as a means to foster cooperation. Former studies have concluded that import tariffs are an effective mechanism to establish international cooperation. However, most of these studies rely on the assumption that outsiders are not able to retaliate, i.e. to implement import tariffs themselves. In this paper we use combined analytical and numerical analysis to investigate implications of retaliation. We find a threshold effect: below a certain coalition size the effect of retaliation predominates and decreases incentives to be a coalition member. In coalitions above the threshold size the effect of trade sanctions that stabilizes coalitions dominates and enables the formation of larger stable coalitions. Our analysis suggests that only after a sufficiently large climate coalition has already been formed, the threat of trade sanctions might be an effective stick to establish the grand coalition. |
| Keywords: | international environmental agreements; computable general equilibrium |
| JEL: | D58 Q54 Q58 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:zen:wpaper:75&r=env |
| By: | Charles Kenny (Center for Global Development); Dev Patel (Center for Global Development) |
| Abstract: | How much innovation will be needed to meet the United Nations’ Sustainable Development Goals? We model shifts in the cross-country relationship between GDP per capita and achievement in key development indicators as “technological gains” and convergence to the best performers at a given income as “policy gains.” Assuming that the United Nations’ income growth projections for low- and middle-income countries are met, we estimate the residual demand for technology and policy innovation needed to meet several critical targets of the SDGs. Our results suggest that (i) best performers are considerably outperforming the average performance at a given income level, suggesting considerable progress could be achieved through policy change but that (ii) the targets set in the SDGs are unlikely to be met by 2030 without very rapid, ubiquitous technological progress alongside economic growth. |
| Keywords: | Sustainable Development Goals, Preston curves, innovation, technology |
| JEL: | O11 O15 O33 |
| Date: | 2017–10–26 |
| URL: | http://d.repec.org/n?u=RePEc:cgd:wpaper:469&r=env |
| By: | Mohammed B. Degnet; Edwin van der Werf; Verina Ingram; Justus Wesseler |
| Abstract: | With the rapid expansion of private forest plantations worldwide, their impacts on local development are under scrutiny by NGOs and researchers alike. This study investigates the impacts of private forest plantations on local infrastructure and social services in rural Tanzania. We take a comparative approach involving households living in villages adjacent to private forest plantations and households in villages adjacent to a state-owned plantation. We use survey data from 338 households to analyze their perceptions about the impacts of the plantations on the number and quality of roads, bridges, and health centers, as well as on school enrolment and quality of education. We triangulate the results from a logistic regression model with observations of the size and quality of infrastructure and social services in the villages and with findings from focus group discussions. The results show that the private forest plantations have positively affected local infrastructure and social services in adjacent villages. The results suggest that large-scale private forest plantations can contribute to rural development in developing countries. We highlight the importance of taking into account the perceptions of various groups in society when assessing the sustainability of forestry investments and their impacts on local communities. |
| Keywords: | private forest plantations, infrastructure, public goods, perceptions, socio-economic impacts, Tanzania |
| JEL: | H41 M14 Q01 Q15 Q23 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_6690&r=env |
| By: | Wolfgang Buchholz; Michael Eichenseer |
| Abstract: | From the perspective of standard public good theory the total amount of greenhouse gas mitigation (or public good supply in general) will be lower in a leader-follower game than in a simultaneous Nash game so that strategic leadership is disadvantageous for climate policy. We show that this need no longer be true when the leading country has the option to employ a technology by which it can reduce its abatement costs and thus improve the productivity of its contribution technology. Our general result is illustrated by an example with Cobb-Douglas preferences and, finally, an empirical application to global climate policy is briefly discussed. |
| Keywords: | public goods, leadership, choice of technology, climate policy |
| JEL: | C72 H41 O31 Q54 Q55 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_6352&r=env |
| By: | Fadzilah Majid Cooke, Johan Nordensvard, Gusni Bin Saat, and Frauke Urban |
| Abstract: | Hydropower dams have been criticised for their social and environmental implications. There have been attempts to create international social standards for hydropower dam projects, but these standards have had limited impact. This article uses an extended environmental justice framework to make sense of the resettlement and compensation schemes for Indigenous peoples who were resettled for the construction of the Bakun dam in Borneo, East Malaysia. The article therefore analyses the social protection measures designed for the protection of Indigenous peoples and their livelihoods. The case study is based on in-depth interviews and focus group discussions with local communities, institutional actors in Malaysia, Chinese actors and dam builders. The article concludes that the social protection policies did not protect Indigenous people and their land sufficiently, but it facilitated a commodification process of both land and people. This should also be understood as a colonisation of their land and their cultures. |
| Keywords: | environmental justice, indigenous groups, social protection, hydropower dams, Malaysia |
| URL: | http://d.repec.org/n?u=RePEc:een:appswp:201732&r=env |
| By: | Christian Leßmann; Arne Steinkraus |
| Abstract: | We study whether the spatial distribution of natural resources across different ethnic groups within countries impede spatial inequality, national economic performance, and the incidence of armed conflict. By providing a theoretical rent-seeking model and analysing a set of geocoded data for mines, night-time light emissions, local populations and ethnic homelands, we show that the distribution of resources is a major driving factor of ethnic income inequality and, thus, induces rent-seeking behaviour. Consequently, we extend the perspective of the resource curse to explain cross-country differences in economic performance and the onset of civil conflicts. We show that the inequality in the spatial distribution of resource endowments within countries drives the curse of natural resources, not the resources per se. |
| Keywords: | natural resources, minerals, mines, night lights, luminosity, ethnic income inequality, spatial inequality, development, civil war, conflict |
| JEL: | D72 D74 Q32 Q34 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_6299&r=env |
| By: | Pedro Naso; Yi Huang Author Name: Tim Swanson |
| Abstract: | We examine the relationship between environmental regulation and competitiveness in China. Exploiting exogenous changes in national pollution standards for three industries—ammonia, paper and cement—we test whether environmental regulation increases industry productivity. Our results show that the strong version of the Porter hypothesis does not hold, but that regulation might reallocate productivity spatially. We show that regulated industries that are located in newly developing cities see an increase in their productivity as compared to the same industries in other cities. This means that environmental regulation is more likely to drive the spatial distribution of productivity changes than it is to drive the pace and direction of technological change. |
| Keywords: | Tax competition; Production Technology and Environment and Development |
| JEL: | H71 O13 Q56 D24 |
| Date: | 2017–10–04 |
| URL: | http://d.repec.org/n?u=RePEc:gii:ciesrp:cies_rp_53&r=env |
| By: | Pedro Naso Author name: Tim Swanson |
| Abstract: | We propose a novel theoretical framework to study how environmental regulation shapes economic development in a developing country such as China. We develop a dynamic tax competition model in which local governments, located in development zones, use variation in taxes to attract workers to their jurisdictions. Their objective is to maximize tax revenue less local health costs that are proportional to local pollution. Our main result is that competition generates a reallocation of productive factors when national regulation is introduced. Local governments in more productive regions set greater production taxes than in other regions. This makes workers and output to shift from more to less developed regions of the country. |
| Keywords: | Tax competition; Asymmetric tax competition; Environment and Development |
| JEL: | H71 H72 Q56 O13 |
| Date: | 2017–10–05 |
| URL: | http://d.repec.org/n?u=RePEc:gii:ciesrp:cies_rp_54&r=env |
| By: | Arbuckle, J. Gordon, Jr.; Lasley, Paul |
| Date: | 2015–12–10 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genstf:201512101604181231&r=env |
| By: | Johanns, Ann |
| Date: | 2015–12–10 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genstf:201512101627421236&r=env |
| By: | Sonia R. Bhalotra (University of Essex); Alberto Diaz-Cayeros (Stanford University); Grant Miller (Stanford University; National Bureau of Economic Research (NBER)); Alfonso Miranda (Centro de Investigación y Docencia Económicas (CIDE)); Atheendar S. Venkataramani (University of Pennsylvania) |
| Abstract: | Historically, improvements in the quality of municipal drinking water made important contributions to mortality decline in wealthy countries. However, water disinfection has not produced equivalent benefits in developing countries today. We investigate this puzzle by analyzing a large-scale municipal water disinfection program in Mexico in 1991 that rapidly increased access to chlorinated water. On average, the program led to a 37–48 percent decline in child diarrheal disease mortality and was highly cost-effective. However, age (degradation) of water pipes and lack of complementary sanitation infrastructure attenuate these benefits. Our results suggest that childhood diarrheal disease mortality in Mexico would have declined by 86 percent if all municipalities had good quality infrastructure—a decline consistent with historical experience. |
| Keywords: | clean water, chlorination, child mortality, infectious disease, diarrhea, Mexico, cost-effectiveness, sanitation, behavioral responses |
| Date: | 2017–10–23 |
| URL: | http://d.repec.org/n?u=RePEc:cgd:wpaper:467&r=env |
| By: | Robert J. Hanlon |
| Abstract: | This article offers three arguments outlining the Asian Infrastructure Investment Bank's significance and to help policy planners navigate the complex relationship between China, the Bank and themes of sustainability. First, there is little uncertainty that China is serious about development and sustainability. The Asian Infrastructure Investment Bank is but one extension of China's increasing commitment to sustainability and should therefore be embraced by development stakeholders. Second, the Asian Infrastructure Investment Bank's commitment to infrastructure development complements other multilateral development banks and should not be considered a challenger to the existing order of development lending practices. Rather, China's interest in establishing the Asian Infrastructure Investment Bank points to competitive pluralism and poses no threat to the existing international order. Finally, the Asian Infrastructure Investment Bank's sustainability guidelines are not unique and fall in line with similar policy of other large development banks. The Asian Infrastructure Investment Bank therefore reinforces sustainability norms while posturing itself as a partner for development. |
| Keywords: | AIIB, China, multilateral development banks, sustainability, construction |
| Date: | 2017–07–11 |
| URL: | http://d.repec.org/n?u=RePEc:een:appswp:201739&r=env |