nep-env New Economics Papers
on Environmental Economics
Issue of 2018‒01‒29
39 papers chosen by
Francisco S. Ramos
Universidade Federal de Pernambuco

  1. Regulation in the presence of adjustment costs and resource scarcity. Transition dynamics and intertemporal effects By Halvor Briseid Storrøsten
  2. How MMEY mitigates bio-economic impacts of climate change on mixed fisheries By Adrien Lagarde; Abdoul Ahad-Cissé; Sophie Gourguet, Olivier Le Pape; Olivier Thébaud, Nathalie Caill-Milly; Gilles Morandeau, Claire Macher; Luc Doyen
  3. Optimal Carbon Dioxide Removal in Face of Ocean Carbon Sink Feedback By Vassiliki Manoussi; Soheil Shayegh; Massimo Tavoni
  4. Trade in Environmental Goods: Empirical Exploration of Direct and Indirect Effects on Pollution by Country’s Trade Status By Natalia Zugravu-Soilita
  5. Regulating Mismeasured Pollution: Implications of Firm Heterogeneity for Environmental Policy By Eva Lyubich; Joseph S. Shapiro; Reed Walker
  6. Ready for a Carbon Tax? An Explorative Analysis of University Students’ Preferences By Lucia Rotaris
  7. Pricing Carbon Emissions in China By Chia-Lin Chang; Te-Ke Mai; Michael McAleer
  8. The Role of Carbon Capture and Storage Electricity in Attaining 1.5 and 2°C By Adriano Vinca; Marianna Rottoli; Giacomo Marangoni; Massimo Tavoni
  9. Capturing industrial CO2 emissions in spain: infrastructures, costs and brek-even prices By Olivier Massol; Stéphane Tchung-Ming; Albert Banal-Estanol
  10. Can the Paris Deal Boost SDGs Achievement? An Assessment of Climate Mitigation Co-benefits or Side-effects on Poverty and Inequality By Lorenza Campagnolo; Marinella Davide
  11. Quantifying Non-cooperative Climate Engineering By Johannes Emmerling; Massimo Tavoni
  12. Closing the evidence gap: Energy consumption, real output and pollutant emissions in a developing mountainous economy By Rabindra Nepal; Nirash Paija
  13. The Impact of Energy Prices on Employment and Environmental Performance: Evidence from French Manufacturing Establishments By Giovanni Marin; Francesco Vona
  14. Water Innovation and Water Governance: Adaptive Responses to Regulatory Change and Extreme Weather Events By Hongxiu Li; Horatiu Rus
  15. Datasets on technological GHG emissions mitigation options for the agriculture sector By Iria Soto; Berta Sanchez Fernandez; Manuel Gomez Barbero; Thomas Fellmann; Emilio Rodriguez Cerezo
  16. Project-Based Carbon Contracts: A Way to Finance Innovative Low-Carbon Investments By Jörn Richstein
  17. Carbon Tax Saliency: The Case of B.C. Diesel Demand By Jean-Thomas Bernard; Maral Kichian
  18. Challenges of Global Agriculture in a Climate Change Context by 2050 (AgCLIM50) By Hans van Meijl; Petr Havlik; Hermann Lotze-Campen; Elke Stehfest; Peter Witzke; Ignacio Perez Dominguez; Benjamin Bodirsky; Michiel van Dijk; Jonathan Doelman; Thomas Fellmann; Florian Humpenoeder; Jason Levin-Koopman; Christoph Mueller; Alexander Popp; Andrzej Tabeau; Hugo Valin
  19. Land allocation between a multiple-stand forest and agriculture under storm risk and recursive preferences By Gaspard Dumollard; Stéphane De Cara
  20. To Go or not to Go: Migration Alleviates Climate Damages even for Those Who Stay Behind By Soheil Shayegh; Greg P. Casey
  21. Assessing the implementation of the Market Stability Reserve By Corinne Chaton; Anna Creti; Maria-Eugenia Sanin
  22. Environmental externalities and free-riding in the household By Jack, Kelsey; Jayachandran, Seema; Rao, Sarojini
  23. A Theory of Gains from Trade in Multilaterally Linked ETSs By Baran Doda; Simon Quemin; Luca Taschini
  24. Stackelberg Games of Water Extraction By Alain Jean-Marie; Mabel Tidball; Fernando Ordóñez; Victor Bucarey López
  25. The efficient combination of taxes on fuel and vehicles By Geir H. M. Bjertnæs
  26. Heat or power: how to increase the use of energy wood at the lowest costs? By Vincent Bertrand; Sylvain Caurla; Elodie Le Cadre; Philippe Delacote
  27. Linking Heterogeneous Climate Policies (Consistent with the Paris Agreement) By Michael A. Mehling; Gilbert E. Metcalf; Robert N. Stavins
  28. Sustainable mobility in Florian—polis: A commuter-based empirical investigation. By Pietro Lanzini; Daniel Pinheiro; Mauro Bonin
  29. Una aproximación teórica metodológica para proyectar una ciudad turística sustentable By Bertoni, Marcela; Maffioni, Julieta; Testa, Joaquín; Faginas, Valeria L.; López, María José; Bertolotti, María Isabel
  30. Análisis de los ciclos de metabolismo urbano para una ciudad turística sustentable y competitiva. El caso de Miramar (Buenos Aires, Argentina) By Testa, Joaquín; Bertoni, Marcela; Maffioni, Julieta
  31. Is electricity affordable and reliable for all in Vietnam? By Minh Ha-Duong; Hoai-Son Nguyen
  32. Measuring Inventive Performance with Patent Data: an Application to Low Carbon Energy Technologies By Clément Bonnet
  33. Financial Vulnerability and Personal Finance Outcomes of Natural Disasters By Edmiston, Kelly D.
  34. A Model of Solar Radiation Management Liability By Pfrommer, Tobias
  35. Sunspots that matter: the effect of weather on solar technology adoption By Lamp, Stefan
  36. Verteilungsprobleme und Ineffizienz in der Klimapolitik By Bardt, Hubertus; Schaefer, Thilo
  37. Services, Service Innovation and the Ecological Challenge By Faridah Djellal; Faïz Gallouj
  38. Interlinked Firms and the Consequences of Piecemeal Regulation By Hansman, Christopher; Hjort, Jonas; León, Gianmarco
  39. Valoración económica de los beneficios en la salud asociados a la reducción de la contaminación del aire: el caso de la Gran Área Metropolitana de Costa Rica By Alpízar, Francisco; Piaggio, Matías; Pacay, Eduardo

  1. By: Halvor Briseid Storrøsten (Statistics Norway)
    Abstract: This paper examines regulation in the presence of adjustment costs and resource scarcity, allowing for imperfectly informed firms. I find strong evidence that announcement of future environmental regulation will reduce current emissions in the combined presence of resource scarcity and adjustment costs. This contrasts with the results in the literature on the green paradox. Further, efficient transition towards a low emission economy requires an investment tax on emission intensive production, unless firms have perfect information about the future. Moreover, investments in clean substitutes should first receive a subsidy, but may thereafter be taxed. The optimal tax on production differs from the Pigouvian tax in the case of scarce resources. Last, a uniform tax across heterogeneous agents can induce the socially optimal outcome only if firms have equal expectations about the future.
    Keywords: regulation; adjustment cost; imperfect information; exhaustible resources; climate change
    JEL: H21 H23 Q41 Q54
    Date: 2017–09
  2. By: Adrien Lagarde; Abdoul Ahad-Cissé; Sophie Gourguet, Olivier Le Pape; Olivier Thébaud, Nathalie Caill-Milly; Gilles Morandeau, Claire Macher; Luc Doyen
    Abstract: This paper examines the effect of climate warming on the bio-economic performance of Bay of Biscay mixed fisheries and provides insights into the best management strategy for coping with global warming. To achieve this, a dynamic multi-species, multi-class, multi-fleets model is developed and calibrated using biological and environmental ICES and IPCC data. Fishing and economic data have been collected within the European DCF. The climate represented by the Sea Surface temperature is assumed to affect species recruitment. Three management strategies are then compared in terms of bio-economic outcomes: Status-Quo (SQ), Multi-species Maximum Sustainable Yield (MMSY), Multispecies Maximum Economic Yield (MMEY). Strategies are ranked with respect to two climate scenarios. Results exhibit that the SQ strategy is not sustainable and is characterized by a major decline of Sole. By contrast, the MMSY and the MMEY strategies improve the ecological state and economic performance of fisheries. Furthermore, the MMEY strategy provides higher bio-economic performances than MMSY. These bio-economic benefits are however altered by climate change effects. Under the MMEY, fleets with more diversified catches perform better facing climate change.
    Keywords: bio-economics ; scenarios ; global warming ; fisheries ; sustainability ; Bay of Biscay
    JEL: Q22 C53
    Date: 2017
  3. By: Vassiliki Manoussi (FEEM and CMCC); Soheil Shayegh (FEEM and CMCC); Massimo Tavoni (FEEM and Politecnico di Milano)
    Abstract: Carbon dioxide removal (CDR) is a potentially important climate strategy for attaining low climate stabilization objectives. However, climate analysis has indicated a possible weakening of the ocean carbon sinks -the largest in the world- in relation to CDR deployment. Here, we provide an economic appraisal to assess the sensitivity of CDR and conventional abatement to CO2 outgassing from the oceans. We develop a theoretical framework to study the impact of the ocean-to-atmosphere transfer on the optimal mitigation strategies under different regimes that control the relationship between CO2 outgassing and the amount of CDR. We show that the optimal levels of emissions and CDR are correlated to the effectiveness of CDR expressed as a linear function of atmospheric concentrations. We incorporate this effect into an integrated assessment model of climate and economy (DICE model) and confirm the theoretical findings with numerical simulations. Further, we perform a sensitivity analysis to find the range of optimal abatement and CDR actions under different values of the CDR effectiveness coefficient.
    Keywords: Climate Change, Outgassing, Carbon Dioxide Removal, Integrated Assessment Model (DICE)
    JEL: Q53 Q54
    Date: 2017–12
  4. By: Natalia Zugravu-Soilita (University of Versailles Saint-Quentin-en-Yvelines)
    Abstract: Based on panel data covering 114 countries in the world, this study investigates the direct, indirect and total effects of trade flows in environmental goods (EG) on total CO2 and SO2 emissions. Our system-GMM estimations reveal positive direct scale – [between-industry] composition effects prevailing on the negative direct technique – [within-industry] composition effects (if any), as well as compensating the significant indirect technique effects channelled by the stringency of environmental regulations and per capita income. If the net importers of EGs (namely from the APEC54 and WTO26 lists) are recurrently found to face increased pollution (in particular CO2 emissions) due to direct scale-composition effects of trade in EGs, the EGs’ net exporters are more likely to see their local pollution to decrease, in particular thanks to income-induced effects. We show that the direct, indirect and total effects of trade in EGs depend on the country’s net trade status, the EGs’ classification and the pollutant considered.
    Keywords: Environmental Goods, Environmental Policy, Net Exporter, Net Importer, Pollution, Trade
    JEL: F13 F14 F18 Q53 Q56 Q58
    Date: 2017–12
  5. By: Eva Lyubich (UC Berkeley); Joseph S. Shapiro (Cowles Foundation, Yale University); Reed Walker (University of California, Berkeley, IZA, & NBER)
    Abstract: This paper provides the first estimates of within-industry heterogeneity in energy and CO2 productivity for the entire U.S. manufacturing sector. We measure energy and CO2 productivity as output per dollar energy input or per ton CO2 emitted. Three findings emerge. First, within narrowly de ned industries, heterogeneity in energy and CO2 productivity across plants is enormous. Second, heterogeneity in energy and CO2 productivity exceeds heterogeneity in most other productivity measures, like labor or total factor productivity. Third, heterogeneity in energy and CO2 productivity has important implications for environmental policies targeting industries rather than plants, including technology standards and carbon border adjustments.
    JEL: F18 H23 Q56
    Date: 2018–01
  6. By: Lucia Rotaris (DEAMS, University of Trieste)
    Abstract: Greenhouse gases emissions are inexorably rising worldwide and the frequency and disruptive power of extreme weather phenomena are dramatically increasing. Although command-and-control and regulation policies have been extensively used to mitigate climate change, more effective and potentially efficient policies are needed to curb the negative externalities produced by human activities. A carbon tax could make the case, but is seldom implemented due to its assumed political unpopularity. In order to estimate the acceptability and the willingness to pay (WTP) for a carbon tax, a contingent valuation experiment was administered in USA and in Italy to a sample of 150 university students. The research is innovative both for the topic chosen, since there are no studies testing the WTP for a carbon tax in the Italian context nor comparing it with the estimates obtained for other countries, and for the methodology used to estimate the WTP, making use of random parameters logit models to obtain individual specific estimates of the median WTP. The results show that the median WTP ranges between a minimum of $161 and a maximum of $242, and varies according to the purposes proposed for the tax revenue use, the respondents’ beliefs and knowledge about climate change, and some sociodemographic characteristics of the respondents (age, gender, and political affiliation). The students’ preferences seem to be quite similar when the nationality of the respondents is taken into account.
    Keywords: Carbon Tax, Willingness to Pay, University Students, Climate Change
    JEL: H31 Q58
    Date: 2017–12
  7. By: Chia-Lin Chang (Department of Applied Economics, Department of Finance, National Chung Hsing University, Taiwan); Te-Ke Mai (Department of Economics, National Tsing Hua University, Taiwan); Michael McAleer (Department of Finance, Asia University, Taiwan)
    Abstract: The purpose of the paper is to provide a clear mechanism for determining carbon emissions pricing in China as a guide to how carbon emissions might be mitigated to reduce fossil fuel pollution. The Chinese Government has promoted the development of clean energy, including hydroelectric power, wind power, and solar energy generation. In order to involve companies in carbon emissions control, a series of regional and provincial carbon markets have been established since 2013. Since China’s carbon market was established in 2013 and mainly run domestically, and not necessarily using market principles, there has been almost no research on China’s carbon price and volatility. This paper provides an introduction to China’s regional and provincial carbon markets, proposes how to establish a national market for pricing carbon emissions, discusses how and when these markets might be established, how they might perform, and the subsequent prices for China’s regional and national carbon markets. Power generation in manufacturing consumes more than other industries, with more than 40% of total coal consumption. Apart from manufacturing, the northern China heating system also relies on fossil fuels, mainly coal, which causes serious pollution. In order to understand the regional markets well, it is necessary to analyze the energy structure in these regions. Coal is the primary energy source in China, so that provinces that rely heavily on coal receive a greater number of carbon emissions permits from the Chinese Government. In order to establish a national carbon market for China, a detailed analysis of eight important regional markets will be presented. The four largest energy markets, namely Guangdong, Shanghai, Shenzhen and Hubei, traded around 82% of the total volume and 85% of the total value of the seven markets in 2017, as the industry structure of the western area is different from that of the eastern area. The China National Development and Reform Commission has proposed a national carbon market, which can attract investors and companies to participate in carbon emissions trading. This important issue will be investigated in the paper.
    Keywords: Pricing Chinese Carbon Emissions; National Pricing Policy; Energy; Volatility; Energy Finance; Provincial Decisions
    JEL: C22 C58 G12 Q48
    Date: 2018–01–11
  8. By: Adriano Vinca (Fondazione Eni Enrico Mattei (FEEM)); Marianna Rottoli (Fondazione Eni Enrico Mattei (FEEM)); Giacomo Marangoni (Fondazione Eni Enrico Mattei (FEEM)); Massimo Tavoni (Fondazione Eni Enrico Mattei (FEEM) and Politecnico di Milano)
    Abstract: The climate targets defined under the Paris agreement of limiting global temperature increase below 1.5 or 2°C require massive deployment of low-carbon options in the energy mix, which is currently dominated by fossil fuels. Scenarios suggest that Carbon Capture and Storage (CCS) might play a central role in this transformation, but CCS deployment is stagnating and doubts remain about its techno-economic feasibility. In this article, we carry out a throughout assessment of the role of CCS electricity for a variety of temperature targets, from 1.5 to above 4°C, with particular attention to the lower end of this range. We collect the latest data on CCS economic and technological future prospects to accurately represent several types of CCS plants in the WITCH energy-economy model, We capture uncertainties by means of extensive sensitivity analysis in parameters regarding plants technical aspects, as well as costs and technological progress. Our research suggests that stringent temperature scenarios constrain fossil fuel CCS based deployment, which is maximum for medium policy targets. On the other hand, Biomass CCS, along with renewables, increases with the temperature stringency. Moreover, the relative importance of cost and performance parameters change with the climate target. Cost uncertainty matters in less stringent policy cases, whereas performance matters for lower temperature targets.
    Keywords: Carbon Capture and Storage, Integrated Assessment Model, Climate Mitigation Policies, Electricity Sector, Low-carbon Technology
    JEL: O33 Q42 Q43 Q54
    Date: 2017–12
  9. By: Olivier Massol; Stéphane Tchung-Ming; Albert Banal-Estanol
    Abstract: This paper examines the conditions for the deployment of large scale pipeline and storage infrastructure needed for the capture of CO2 in Spain by 2040. It details a modeling framework that allows us to determine the optimal infrastructure needed to connect a geographically disaggregated set of emitting and storage clusters, along with the threshold CO2 values necessary to ensure that the considered emitters will make the necessary investment decisions. This framework is used to assess the relevance of various policy scenarios, including (i) the perimeter of the targeted emitters for a CCS uptake, and (ii) the relevance of constructing several regional networks instead of a single grid to account for the spatial characteristics of the Spanish peninsula. We find that three networks naturally emerge in the north, center and south of Spain. Moreover, the necessary CO2 break-even price critically depends on the presence of power stations in the capture perimeter. Policy implications of these findings concern the elaboration of relevant, pragmatic recommendations to envisage CCS deployment locally, focusing on emitters with lower substitution options toward low-carbon alternatives.
    Keywords: Carbon capture and storage, CO2 pipeline network, Break-even price for deployment
    Date: 2018
  10. By: Lorenza Campagnolo (Fondazione Eni Enrico Mattei (FEEM)); Marinella Davide (Fondazione Eni Enrico Mattei (FEEM), Harvard University and Ca’ Foscari University)
    Abstract: The paper analyses the synergies and trade-offs between emission reduction policies and sustainable development objectives. Specifically, it provides an ex-ante assessment that the impacts of the Nationally Determined Contributions (NDCs), submitted under the Paris Agreement, will have on the Sustainable Development Goals (SDGs) of poverty eradication (SDG1) and reduced income inequality (SDG10). By combining an empirical analysis with a modelling exercise, the paper estimates the future trends of poverty prevalence and inequality across countries in a reference scenario and under a climate mitigation policy with alternative revenue recycling schemes. Our results suggest that a full implementation of the emission reduction contributions, stated in the NDCs, is projected to slow down the effort to reduce poverty by 2030 (+2% of the population below the poverty line compared to the baseline scenario), especially in countries that have proposed relatively more stringent mitigation targets and suffer higher policy costs. Conversely, countries with a stringent mitigation policy experience a reduction of inequality compared to baseline scenario levels. If financial support for mitigation action in developing countries is provided through an international climate fund, the prevalence of poverty will be slightly reduced at the aggregate level (185,000fewer poor people with respect to the mitigation scenario), but the country-specific effect depends on the relative size of funds flowing to beneficiary countries and on their economic structure.
    Keywords: SDGs, Poverty, Inequality, CGE Model, Mitigation Policy, Paris Agreement
    JEL: C23 C68 Q56
    Date: 2017–09
  11. By: Johannes Emmerling (FEEM and CMCC); Massimo Tavoni (Politecnico di Milano, FEEM and CMCC)
    Abstract: The mismatch between actions to combat climate change, which are based on voluntary national initiatives of limited effort, and the recognition of the importance of global warming is growing. Climate engineering via solar radiation management has been proposed as a possible complement to traditional climate policies. However, climate engineering entails specific risks, including its governance. Free driving, the possibility of unilateral climate engineering to the detriment of other nations, has been recently proposed as a potentially powerful additional externality to the traditional free riding one (Weitzman, 2015). This paper provides the first quantitative evaluation of the risks of free driving. Our results indicate that in a strategic setting there is significant over-provision (by almost an order of magnitude) of climate engineering above what is socially optimal, resulting in a sub-optimal global climate. Regions with high climate change impacts, most notably India and developing Asia, deploy climate engineering at the expenses of other regions.
    Keywords: Climate Engineering, Climate Governance, Free Driving, Climate Policy
    JEL: H41 Q54 Q58
    Date: 2017–12
  12. By: Rabindra Nepal; Nirash Paija
    Abstract: This study examines the inter relationships between energy consumption, output and carbon emissions in a mountainous economy using an augmented Vector Autoregression model. Time-series data over the period 1975-2013 is studied applying a multivariate framework using population and gross fixed capital formation as additional variables for Nepal. We control for the presence of structural breaks, autoregressive conditional heterosdeacticity and serial correlation in our analysis. Testing for Granger causality between integrated variables based on asymptotic theory reveals a long-run unidirectional Granger causality running from GDP to energy consumption, and a unidirectional Granger causality running from carbon emissions to GDP. The results indicate that energy consumption does not lead to economic growth while income leads to energy consumption. We suggest that the government of Nepal can adopt energy conservation policies and energy efficiency improvements to narrow the energy supply-demand gap. However, environmental policies aimed at reducing air pollution may have adverse effects on the growth of the Nepalese economy, which calls for a gradual approach towards decarbonisation. Our results remain robust to different estimators and contributes to an emerging literature on the nexus relationships between energy consumption, income and carbon emissions in developing economies.
    Keywords: economic growth, granger causality, energy consumption, carbon emissions
    JEL: C32 O55 Q20 Q43
    Date: 2018–01
  13. By: Giovanni Marin (University of Urbino ‘Carlo Bo' and SEEDS); Francesco Vona (OFCE-SciencesPo and SKEMA Business School)
    Abstract: This paper evaluates the historical influence of energy prices on a series of measures of environmental and economic performance for a panel of French manufacturing establishments over the period 1997-2010. The focus on energy prices is motivated by the fact that changes in environmental and energy policies have been dominated by substantial reductions in discounts for large consumers, making the evaluation of each policy in isolation exceedingly difficult. To identify price effects, we construct a shift-share instrument that captures only the exogenous variation in establishment-specific energy prices. Our results highlight a trade-off between environmental and economic goals: although a 10 percent increase in energy prices brings about a 6 percent reduction in energy consumption and an 11 percent reduction in CO2 emissions, such an increase also has a modestly negative impact on employment (-2.6 percent) and very small impact on wages and productivity. The negative employment effects are mostly concentrated in energy-intensive and trade-exposed sectors. Simulating the effect of a carbon tax, we show that job losses for the most exposed sectors can be quite large. However, these effects are upper bounds and we show that they are significantly mitigated in multi-establishment firms by labor reallocation across establishments.
    Keywords: Energy Prices, Establishment Performance, Environmental and Energy Policy
    JEL: Q52 Q48 H23 D22
    Date: 2017–12
  14. By: Hongxiu Li (Department of Economics, University of Waterloo); Horatiu Rus (Department of Economics, University of Waterloo)
    Abstract: This paper investigates the effect of federal and state level regulatory changes with respect to drinking water quality, water pollution and water quantity in the United States on the level of relevant technological innovation. We construct and use a unique dataset covering major amendments and additions to regulated contaminants lists as stipulated in the legislative acts most relevant to the policy area we study, along with a list of technological patents pertaining to water quality and quantity over a period of more than 30 years. We find in general the impact of water regulation on innovation to be both statistically and economically significant.
    JEL: Q31 Q55
    Date: 2018–01
  15. By: Iria Soto (European Commission - JRC); Berta Sanchez Fernandez (European Commission - JRC); Manuel Gomez Barbero (European Commission - JRC); Thomas Fellmann (European Commission - JRC); Emilio Rodriguez Cerezo (European Commission - JRC)
    Abstract: The 2030 EU policy framework for climate and energy confirms that all sectors, including agriculture, should contribute to climate stabilisation and greenhouse gas (GHG) emission reduction in the most cost-effective way. Since 2009, the European Commission's Joint Research Centre (JRC) analyses the economic impact of GHG mitigation policy options for EU agriculture. However, the lack of precise, integrated and harmonised data on the current and potential uptake, cost-effectiveness and GHG emissions reduction potential of technological (i.e. technical and management based) mitigation options hampers the analysis of the economic impacts of GHG mitigation in agriculture. Against this background, the JRC organised a workshop in Seville on 14th June 2016 which gathered European Commission staff and experts from diverse international institutions aiming to: i) identify current activities conducted by research institutes on the building of datasets for GHG mitigation technologies and their state and development, ii) establish synergies and working mechanisms among the different institutions working on the topic, iii) identify which are the current gaps and limitations of existing datasets and models and, iv) conceive a roadmap to build possible new datasets per mitigation technology. The present report is based on the workshop results and concludes on how to move forward.
    Keywords: Mitigation technologies, climate change, GHG emissions, dataset, agriculture
    Date: 2017–08
  16. By: Jörn Richstein
    Abstract: Low and uncertain carbon prices are often stated as a major obstacle for industrial sector investments in technologies to deliver deep emissions reductions. Project-based carbon contracts underwritten by national governments could addressregulatory risk, lower financing costs and strengthen incentives for emission reductions at investment and operation stage. In this paper design options for project-based carbon contracts are assessed using an analytical model capturing risk aversion of investors with a meanvariance utility function. The model is also used to assess how a combination with grant support for innovative projects can minimize overall costs of innovation policy. Savings in financing costs are quantified using a stylized project finance cash flow analysis.
    Keywords: Emission trading systems, carbon contract, innovation support
    JEL: D81 Q48 Q54 Q55 Q58 O38
    Date: 2017
  17. By: Jean-Thomas Bernard (Department of Economics, University of Ottawa, Ottawa, ON); Maral Kichian (Graduate School of Public and International Affairs, University of Ottawa, Ottawa, ON)
    Abstract: In 2008, the government of the province of British Columbia broke new ground in North America by introducing a revenue-neutral carbon tax on fossil fuels. The initial rate was set at $10/ton of CO2 which was then increased annually by $5 increments to reach $30/ton in 2012. We focus on monthly diesel use which is mostly related to commercial activities. Our objective is to measure user reaction to the new tax. Exploiting the sample time series properties, we study the long run reaction via a cointegration equation, linking diesel use, its total price, and income, and the short run reaction using an error correction model (ECM). Carbon tax saliency is interpreted as a short run phenomenon that shows up in the dynamic adjustment of the ECM. We find that the long run total price elasticity estimate of diesel demand is -0.52 and that the short run tax saliency effect is statistically significant. However, the total reaction is small relative to Canada’s commitment to decrease GHG emissions by 30% in 2030 relative to 2005 levels.
    Keywords: diesel demand, carbon tax, tax saliency.
    JEL: Q41 Q58 H23
    Date: 2017
  18. By: Hans van Meijl (Wageningen Economic Research, The Hague, The Netherlands); Petr Havlik (International Institute for Applied Systems Analysis (IIASA), Laxenburg, Austria); Hermann Lotze-Campen (Potsdam Institute for Climate Impact Research (PIK), Potsdam, Germany); Elke Stehfest (Netherlands Environmental Assessment Agency (PBL), The Hague, The Netherlands); Peter Witzke (EuroCARE, Bonn, Germany); Ignacio Perez Dominguez (European Commission - JRC); Benjamin Bodirsky (Potsdam Institute for Climate Impact Research (PIK), Potsdam, Germany); Michiel van Dijk (Wageningen Economic Research, The Hague, The Netherlands); Jonathan Doelman (Netherlands Environmental Assessment Agency (PBL), The Hague, The Netherlands); Thomas Fellmann (European Commission - JRC); Florian Humpenoeder (Potsdam Institute for Climate Impact Research (PIK), Potsdam, Germany); Jason Levin-Koopman (Wageningen Economic Research, The Hague, The Netherlands); Christoph Mueller (Potsdam Institute for Climate Impact Research (PIK), Potsdam, Germany); Alexander Popp (Potsdam Institute for Climate Impact Research (PIK), Potsdam, Germany); Andrzej Tabeau (Wageningen Economic Research, The Hague, The Netherlands); Hugo Valin (International Institute for Applied Systems Analysis (IIASA), Laxenburg, Austria)
    Abstract: This report presents a global integrated assessment of the range of potential economic impacts of climate change and stringent mitigation measures in the agricultural sector. The analysis employs five global multi-region multi-commodity models and covers selected combinations of socioeconomic storylines and climate signals by mid-century. Model inputs are harmonised by using the same projections for population and GDP growth, as well as relative biophysical crop yield changes due to climate change. Model results can differ depending on model characteristics and the specific quantitative implementations of the socioeconomic storylines.
    Keywords: agriculture, climate change, mitigation, adaptation, economic models, shared socioeconomic pathways
    Date: 2017–06
  19. By: Gaspard Dumollard; Stéphane De Cara (ECO-PUB - Economie Publique - INRA - Institut National de la Recherche Agronomique - AgroParisTech)
    Abstract: This study aims to characterize steady-state land allocations between a multiple-stand forest and agriculture, when the forest is subject to a storm risk. The landowner is supposed to have recursive preferences, which permits to distinguish between in-tertemporal preferences and risk preferences. Using a stochastic dynamic programming model, we show that both land allocation and forest management depend on the risk and on both types of preferences at the steady-state. Risk aversion is shown to favor land allocation to agriculture and to reduce the forest average harvest age while the preference for a regular income is shown to favor forestry and to reduce the average harvest age.
    Keywords: Land allocation,Forest management,Recursive preferences,Stochastic Dynamic Programming
    Date: 2017–12–07
  20. By: Soheil Shayegh (Fondazione Eni Enrico Mattei (FEEM)); Greg P. Casey (Institute at Brown for Environment and Society, Brown University)
    Abstract: We examine the effect of climate change on fertility rates and human capital accumulation in developing countries, focusing on the instrumental role of migration. In particular, we investigate how climate-induced migration in developing countries will affect those who do not migrate. Holding all else constant, climate shocks raise the return to acquiring skills, because skilled individuals compared to unskilled ones have greater opportunity to migrate after the shock. In response to this change in incentives, parents choose to invest more in education and have less children, a process known as the ‘quantity-quality’ trade-off. These effects partially offset the damages of climate change, even for those who do not migrate.
    Keywords: Migration, Climate Change, Fertility, Population, Wage, Quantity-quality Tradeoff
    JEL: F22
    Date: 2017–12
  21. By: Corinne Chaton; Anna Creti; Maria-Eugenia Sanin
    Abstract: In October 2015 the European Parliament has established a market stability reserve (MSR) in the Phase 4 of the EU-ETS, as part of the 2030 framework for climate policies. In this paper we model the EU-ETS in presence of the Market Stability Reserve (MSR) as it is defined by that decision and investigate the impact that such a measure has in terms of permits price, output production and banking strategies. To do so we build an inter-temporal model in which polluting firms competing in an homogeneous good market are price takers in a permits market and face an uncertain demand. Our main finding is that the MSR succeeds in increasing the permits' price correcting an excess supply (and conversely decreasing it in case of excess demand). However, when the output demand is stochastic, the MSR may alter the arbitrage conditions that determine permits' prices. In some cases which depend on the extend of the demand variation, unintended effects on the price pattern appear. This in turns may adversely affect welfare.
    Keywords: ETS, Market stability reserve, MSR, Banking
    Date: 2017
  22. By: Jack, Kelsey; Jayachandran, Seema; Rao, Sarojini
    Abstract: Water use and electricity use, which generate negative environmental externalities, are susceptible to a second externality problem: with household-level billing, each person enjoys private benefits of consumption but shares the cost with other household members. If individual usage is imperfectly observed (as is typical for water and electricity) and family members are imperfectly altruistic toward one another, households overconsume even from their own perspective. We develop this argument and test its prediction that intrahousehold free-riding dampens price sensitivity. We do so in the context of water use in urban Zambia by combining billing records, randomized price variation, and a lab-experimental measure of intrahousehold altruism. We find that more altruistic households are considerably more price sensitive than are less altruistic households. Our results imply that the socially optimal price needs to be set to correct both the environmental externality and also the intrahousehold externality.
    Keywords: environmental externalities; intrahousehold decision-making; moral hazard; Pigouvian pricing; water use
    JEL: O10 Q5
    Date: 2018–01
  23. By: Baran Doda; Simon Quemin; Luca Taschini
    Abstract: Linkages between emissions trading systems (ETSs) have an important role to play in the successful, cost-effective implementation of the Paris Agreement. While the theory of bilateral linkages is well established, we know relatively little about the gains from trade in a multilaterally linked system, and less still about how they are shared among jurisdictions participating in the system. We characterize these gains for an arbitrary linkage coalition, show how they can be decomposed into gains in the coalition's internal bilateral linkages, and prove that linkage is superadditive. Our theoretical results imply the global market may not emerge endogenously and a quantitative exercise shows that this concern may have some validity in practice.
    Keywords: International emissions trading systems, Climate change policy, Bilateral linking, Multilateral linking, Global carbon market
    Date: 2017
  24. By: Alain Jean-Marie (NEO - Network Engineering and Operations - CRISAM - Inria Sophia Antipolis - Méditerranée - Inria - Institut National de Recherche en Informatique et en Automatique, UCA - Université Côte d'Azur); Mabel Tidball (LAMETA - Laboratoire Montpelliérain d'Économie Théorique et Appliquée - UM1 - Université Montpellier 1 - UM3 - Université Paul-Valéry - Montpellier 3 - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - INRA Montpellier - Institut national de la recherche agronomique [Montpellier] - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier); Fernando Ordóñez (DII - Departamento de Ingenieria Industrial [Santiago] - USACH - Universidad de Santiago de Chile [Santiago]); Victor Bucarey López (DII - Departamento de Ingenieria Industrial [Santiago] - USACH - Universidad de Santiago de Chile [Santiago])
    Abstract: We consider a discrete time, infinite horizon dynamic game of groundwater extraction. A Water Agency charges an extraction cost to water users, and controls the marginal extraction cost so that it depends linearly on total water extraction (through a parameter n) and on rainfall (through parameter m). The water users are selfish and myopic, and the goal of the agency is to give them incentives them so as to, at the same time, improve their total welfare and improve the long-term level of the resource. We look at this problem in several situations for a linear-quadratic model. In the first situation, the parameters n and m are considered to be fixed over time, and the Agency selects the value that maximizes the total discounted welfare of agents. We analyze this solution, from the economic and environmental point of view, as a function of model parameters, including the discount factor that is used. A first result shows that when Water Agency is patient (discount factor tends to 1) optimal marginal extraction cost asks for strategic interactions between agents. In a second situation, we look at the dynamic Stackelberg game where the Agency decides at each time what cost parameter they must announce in order to maximize the welfare function. We present the sensitivity analysis of the solution for a small time horizon, and present a numerical scheme for the infinite-horizon problem.
    Date: 2017–07–13
  25. By: Geir H. M. Bjertnæs (Statistics Norway)
    Abstract: A tax on fuel combined with tax-exemptions or subsidies for purchase of fuel-efficient vehicles is implemented in many countries to reduce greenhouse gas emissions and other negative externalities from road traffic. This study, however, shows that a tax on fuel should be combined with heavier taxation of fuel-efficient vehicles to curb externalities from road traffic. The tax on fuel is implemented to curb externalities linked to both consumption of fuel and road use. The heavier tax on fuel-efficient vehicles prevents that motorists avoid the road user charge on fuel by purchasing fuel-efficient vehicles.
    Keywords: Transportation; optimal taxation; environmental taxation; global warming
    JEL: H2 H21 H23 Q58 R48
    Date: 2017–10
  26. By: Vincent Bertrand; Sylvain Caurla; Elodie Le Cadre; Philippe Delacote
    Abstract: We compute the optimal subsidy level to fuelwood consumption that makes it possible to achieve the French biomass energy consumption target. In this view, we model the competitions and trade-offs between the consumption of fuelwood for heat (FW-H) and the consumption of fuelwood for power generation (FW-E). To do so, we couple a forest sector model with an electricity simulation model and we test different scenarios combining FWH and FW-E that account for contrasted potential rise in carbon price and potential reduction in the number of nuclear plants. We assess the implications of these scenarios on (1) the budgetary costs for the Government, (2) the industrial wood producers’ profits, (3) the costs savings in power sector for the different scenarios tested and (4) the carbon balance. We show that the scenario with the highest carbon price and the lowest number of nuclear plants is the less expensive from a budgetary perspective. Indeed, when associated with a high carbon price, co-firing may increase FW-E demand with lower subsidy level, which enables reducing the cost of reaching the target. However, in this case, FW-E crowds-out part of FW-H which may cause political economy issues. From a carbon balance perspective, a FW-H only scenario better performs than any other scenario that combines FW-H and FW-E due to the relatively low emissions factors of alternative technologies for electricity generation, in particular nuclear energy.
    Keywords: Forestry sector, Bioenergy, Biomass-based electricity, Carbon pricing, Nuclear power
    Date: 2017
  27. By: Michael A. Mehling (Massachusetts Institute of Technology); Gilbert E. Metcalf (Tufts University); Robert N. Stavins (Harvard University)
    Abstract: The Paris Agreement has achieved one of two key necessary conditions for ultimate success – a broad base of participation among the countries of the world. But another key necessary condition has yet to be achieved – adequate collective ambition of the individual nationally determined contributions. How can the climate negotiators provide a structure that will include incentives to increase ambition over time? An important part of the answer can be international linkage of regional, national, and subnational policies, that is, formal recognition of emission reductions undertaken in another jurisdiction for the purpose of meeting a Party’s own mitigation objectives. A central challenge is how to facilitate such linkage in the context of the very great heterogeneity that characterizes climate policies along five dimensions – type of policy instrument; level of government jurisdiction; status of that jurisdiction under the Paris Agreement; nature of the policy instrument’s target; and the nature along several dimensions of each Party’s Nationally Determined Contribution. We consider such heterogeneity among policies, and identify which linkages of various combinations of characteristics are feasible; of these, which are most promising; and what accounting mechanisms would make the operation of respective linkages consistent with the Paris Agreement.
    Keywords: Climate Policy, Paris Agreement, Nationally Determined Contributions
    JEL: Q5 Q56
    Date: 2017–12
  28. By: Pietro Lanzini (Dept. of Management, Università Ca' Foscari Venice); Daniel Pinheiro (UDESC Universidade do Estado de Santa Catarina); Mauro Bonin (UDESC Universidade do Estado de Santa Catarina)
    Abstract: Mobility in Brazil represents a crucial challenge for policy makers, given the economic, environmental and social problems that current patterns of transportation bear in densely populated urban areas. The research stems from the assumption that, since commuters play a key-role in driving the change towards innovative and environment-friendly mobility systems, a thorough understanding of the motives underpinning modal choice is a pre-requisite for the implementation of sound strategies and policies. The paper illustrates the preliminary results of an empirical investigation on modal choice on a sample of 436 commuters from the urban area of Florian—polis, Santa Catarina (Brazil). Policy implications for public authorities are presented, and avenues for future research are proposed.
    Keywords: sustainable mobility; policy makers; commuters; travel mode choice
    JEL: M48
    Date: 2018–01
  29. By: Bertoni, Marcela; Maffioni, Julieta; Testa, Joaquín; Faginas, Valeria L.; López, María José; Bertolotti, María Isabel
    Abstract: Los cambios actuales en el escenario turístico repercuten directamente en los destinos litorales consolidados, lo que obliga a estas ciudades a generar un proceso de renovación y adaptación que salvaguarde su sustentabilidad a fin de garantizar su competitividad. En este contexto, la planificación y gestión del desarrollo turístico evidencia ciertas limitaciones sectoriales, políticas y técnicas para favorecer un mejor ajuste destino-mercado a medio-largo plazo que pueda garantizar un desarrollo turístico sustentable. Por ende, se propone analizar los desafíos de la aplicación práctica de los marcos de ciudad sustentable para logar un destino turístico sustentable, en este caso Miramar, atendiendo a sus condiciones urbanas particulares y sus necesidades y oportunidades ambientales a futuro. Esto implica llevar a cabo una investigación teórica y práctica transferible a un modelo de gestión turístico ambiental. Para ello, se discuten, en términos teóricos, cuáles variables deben ser medidas y cuáles criterios deben ser usados en función de una definición local-global y social de objetivos sustentabilidad urbana (intereses e impactos). Y en términos operativos se proyectan escenarios derivados de cálculos de eficiencia y del consumo urbano optimizado, que aporten al diseño de un esquema de gestión del máximo aprovechable en condiciones de competitividad ecológica, energética, ambiental y turística. Esto provee el soporte teórico metodológico para la eficiencia energética y conservación de recursos, la reducción de desechos y emisiones y la valorización social de los recursos naturales y servicios ambientales. Asimismo son un aporte integral y cualitativo, para la gestión ambiental del ecosistema urbano que alcancen las metas de una ciudad sustentable.
    Keywords: Ciudades; Destinos Turísticos; Desarrollo Sustentable; Sustentabilidad Turística;
    Date: 2017–10
  30. By: Testa, Joaquín; Bertoni, Marcela; Maffioni, Julieta
    Abstract: Miramar, como destino turístico de sol y playa, viene generando alternativas de reconversión del turismo orientadas al desarrollo sustentable. Se plantea un estudio del consumo de recursos y la producción de residuos con el objetivo analizar los ciclos del metabolismo urbano en esta ciudad turística y su viabilidad para ser sustentable y competitiva. La estrategia propuesta se basó en los ciclos metabólicos del sistema urbano: del aire, del agua, de los residuos y de la energía. Los resultados reflejan que Miramar tiene una la falta de eficiencia en garantizar el cierre de los ciclos de la materia. Aunque se evidencian algunos aspectos positivos por la incorporación de criterios de sustentabilidad en la gestión. Las iniciativas políticas para mejorar los ciclos metabólicos no se concretan en la práctica y en el corto plazo se reduce la viabilidad de Miramar de configurarse como un destino sostenible. Sin embargo, la concreción de proyectos en agenda mejoraría la situación a futuro.
    Keywords: Ciudades; Metabolismo Urbano; Desarrollo Sustentable; Sustentabilidad Turística; Miramar;
    Date: 2017–10
  31. By: Minh Ha-Duong (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique); Hoai-Son Nguyen (ABIèS - Ecole doctorale - INA P-G - Institut National Agronomique Paris-Grignon, CleanED - Clean Energy and Sustainable Development Lab - USTH - University of sciences and technologies of hanoi, CIRED - Centre International de Recherche sur l'Environnement et le Développement - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Access to clean and affordable energy for all is the seventh sustainable development goal. This manuscript examines the state of access to electricity for all in Vietnam, based on national households surveys conducted in the time period 2008-2014. Our theoretical contribution to debates on energy poverty is to account for the human dimension by using an self-reported satisfaction indicator. We argue that subjective energy poverty indicators –designed from surveys asking people if they had enough electricity to meet their households needs– are as relevant as objective indicators –from engineering or economic data. While objectivity is laudable, development is not only about technology and money: measuring human satisfaction matters. We find that in Vietnam, the problem of providing access to clean energy for all is largely solved for now: the fraction of households without access to electricity is below two percent, the median level of electricity usage in 2014 was 100 kWh per month per household, and the fraction of households declaring unsatisfied electricity needs is below three percent. We also find that electricity is becoming a heavier burden in Vietnamese households’ finances. In 2010, the electricity bill exceeded 6% of income for 2.4% of households, but in 2014 that number reached 5.5% of households. Electricity is affordable for all in Vietnam today, but this could be compromised if electricity tariffs increase in order to finance further clean development of the energy system. We quantify how this problem could be attenuated by making the retail tariff of electricity much more progressive. We define a more progressive block tariff that provides free access to 30 kWh basic need per household, while increasing the cost for other blocks. This could increases the revenue for EVN by 15% and at the same time decrease the electricity bill for the 28% of households who use less than 80 kWh per month.
    Keywords: sustainable development goal,electricity,Vietnam,Indicators of sustainable development
    Date: 2017–08–01
  32. By: Clément Bonnet
    Abstract: We estimate an index that measures the quality of the patented inventions related to Low Carbon Energy Technologies (LCETs) and delivered in seven countries during 1980-2010. This quality index is built using a Latent Factor Model (LFM) that synthesizes the information contained in patent documents. We capture a unique measure of patents quality, defined here as the economic value that is imputable to the technological advance resulting from the patented invention. A robust measure of the inventive performance of each country in the LCETs is obtained using the quality index. Several insights are derived from this measure about the technical advantages of countries and the dynamics of technologies' quality.
    Keywords: Patent data, Energy technologies, Latent factor model, Low carbon innovation
    Date: 2017
  33. By: Edmiston, Kelly D. (Federal Reserve Bank of Kansas City)
    Abstract: I evaluate the effects of hurricanes of varying intensity on the financial condition of a typical resident in both affected and unaffected census tracts, where the degree of affect is determined by the relative location of a census tract’s boundary with buffers around the tracks of hurricane eyes that occurred in the years 2000-2014. The primary question in the article is whether financial vulnerability, or, alternatively, “financial preparedness,” affects post-hurricane disaster financial outcomes. {{p}} I find that hurricanes tend to lower credit scores, for the most, but outcomes are far from uniform across categories of hurricanes. I attribute these differences largely to number of disasters in each quarter of the study period, levels of disaster aid, and media coverage and political interest. In some cases I surmise that those in the 25-mile buffer may benefit from economic stimulus that follows a hurricane, but do not have damages and other economic losses to the same extent as those within a 15-mile buffer. Modeling hurricanes as “treatments” and interacting them with variables from consumer credit reports, I find that the financial vulnerability of residents in affected census tracts is associated with poorer financial outcomes. Considering lags, financial vulnerability is shown to have a considerable impact on post-hurricane personal finance outcomes.
    Keywords: Disasters; Hurricanes; Financial Preparedness
    JEL: I31 Q54 R11
    Date: 2017–09–01
  34. By: Pfrommer, Tobias
    Abstract: Solar Radiation Management (SRM) is a set of potential technologies to counteract climate change. Liability regimes are one potential form of governance institution to avoid global externalities caused by the SRM "free-driver" problem. In this paper I examine the incentives structure and welfare consequences of SRM liability regimes. Characteristics specific to SRM impact on the incentives that liability regimes provide via the definition of harm and the liability standard. Consequently, a liability regime is defined as a combination of a definition of harm and a liability standard in the model. Providing several interpretations of these two dimensions adequate for the SRM context, I show that only one combination implements the social optimum. A numerical implementation of the model yields that the free-driver problem is moderate given a metric of mean temperature and extreme given a metric of mean precipitation. Furthermore, the implementation suggests that liability regimes are generally capable of mitigationg the free-driver problem substantially and that the choice of the definition of harm is more consequential than the choice of the liability standard.
    Date: 2018–01–24
  35. By: Lamp, Stefan
    Abstract: This paper tests for the effect of weather on solar technology adoption, taking advantage of the fact that sunshine is a direct input factor for solar electricity production. I find that a one standard deviation increase in monthly sunshine hours above the long-term average leads to an approximate 6.2 % growth in the residential solar market over a six-month period. I consider a range of potential mechanisms and find strong evidence for projection bias and salience as key drivers of my results. My findings show that there is an asymmetric response to positive and negative sunshine deviations from the long-term mean and that counties with a high vote share for the green party are particularly affected by these biases.
    Keywords: projection bias; salience; technology diffusion; solar technology; energy policy
    JEL: D12 D91 Q42
    Date: 2018–01
  36. By: Bardt, Hubertus; Schaefer, Thilo
    Abstract: Deutschland hat sich anspruchsvolle Klimaschutzziele gesetzt und will diese mit möglichst geringen wirtschaftlichen Kosten verwirklichen. Ein höheres Maß an Effizienz wird dann erreicht, wenn die preisgünstigen Maßnahmen zuerst umgesetzt werden, während auf teurere Maßnahmen verzichtet wird. Diese kommen erst dann zum Zuge, wenn die günstigeren Vermeidungspotenziale bereits ausgeschöpft sind.
    Date: 2018
  37. By: Faridah Djellal (CLERSE - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille, Sciences et Technologies - ULCO - Université du Littoral Côte d'Opale - CNRS - Centre National de la Recherche Scientifique); Faïz Gallouj (CLERSE - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille, Sciences et Technologies - ULCO - Université du Littoral Côte d'Opale - CNRS - Centre National de la Recherche Scientifique)
    Date: 2018
  38. By: Hansman, Christopher; Hjort, Jonas; León, Gianmarco
    Abstract: Industrial regulations are typically designed with a particular policy objective and set of firms in mind. When input-output linkages connect firms across sectors, such "piecemeal" regulations may worsen externalities elsewhere in the economy. Using daily administrative and survey data, we show that in Peru's industrial fishing sector, the world's largest, air pollution from downstream (fishmeal) manufacturing plants caused 55,000 additional respiratory hospital admissions per year as a consequence of the introduction of individual property rights (over fish) upstream. The upstream regulatory change removed suppliers' incentive to "race" for the resource and enabled market share to move from inefficient to efficient downstream firms. As a result, the reform spread downstream production out across time, as predicted by a conceptual framework of vertically connected sectors. We show evidence consistent with the hypothesis that longer periods of moderate air polluting production can be worse for health than concentrating a similar amount of production in shorter periods. Our findings demonstrate the risks of piecemeal regulatory design in interlinked economies.
    Keywords: air pollution; Coasian solutions; externalities; Industrial regulations
    JEL: D2 I1 L5 O1
    Date: 2018–01
  39. By: Alpízar, Francisco; Piaggio, Matías; Pacay, Eduardo
    Abstract: Debido a la dinámica de alta densidad poblacional y los elevados niveles de contaminación, la relación entre la calidad del aire y la salud es un problema casi exclusivo de las ciudades. Existe un creciente interés por parte del sector científico y por diversas agencias de salud pública, para determinar el valor de los costos económicos que ocasiona la contaminación derivada de las actividades antropogénicas ya que, solo si se comprende la magnitud de los daños en términos monetarios, será posible realizar una incidencia política efectiva sobre los tomadores de decisiones. Bajo ese contexto, el presente trabajo analiza el impacto de la degradación en la calidad del aire sobre la salud y realiza una valoración económica de los beneficios que se podrían obtener si se redujera la carga de contaminación atmosférica de acuerdo a distintos estándares de calidad del aire, esto para un sector específico de la denominada Gran Área Metropolitana (GAM) en Costa Rica.
    Date: 2017–12–31

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