nep-res New Economics Papers
on Resource Economics
Issue of 2005‒12‒09
five papers chosen by
Maximo Rossi
Universidad de la República

  1. A Cge Model for Environmental and Trade Policy Analysis in Chile: Case Study for Fuel Tax Increases By Raúl O'Ryan; Carlos J. de Miguel; Sebastian Miller
  2. Urban Air Quality and Human Health in Latin America and the Caribbean By Luis A. Cifuentes; Alan J. Krupnick; Raúl O'Ryan; Michael A. Toman
  3. Impact of Climate Policy on the Basque Economy By Mikel González; Rob Dellink
  4. Induced Technological Change in a Limited Foresight Optimization Model By Fredrik Hedenus; Christian Azar; Kristian Lindgren
  5. Optimal Control and Spatial Heterogeneity: Pattern Formation in Economic-Ecological Models By Anastasios Xepapadeas; William Brock

  1. By: Raúl O'Ryan; Carlos J. de Miguel; Sebastian Miller
    Abstract: Computable General Equilibrium (CGE) models are a powerful economic tool for multidimensional/multi-sectoral analysis. They improve traditional input-output analysis generating quantities and prices endogenously and reflecting market incentives. They complement partial equilibrium analysis with a broader scope of analysis and the quantification of indirect and often non-intuitive effects. Environmental applications of CGE models include trade and environment, climate change, energy problems, natural resources management and environmental regulation analysis. The ECOGEM-Chile model described in this paper can be used to analyse impacts on macro, sectoral, social and environmental (air, water and land pollutants) variables of different economic, social or/and environmental policies, such as trade policies, environmental taxes, external price shocks, among others. The model incorporates the recently released 1996 input/output matrix as well as the most recent information on wages and income. In the specific application developed here, the model is used to analyse direct and indirect impacts on the Chilean economy of increasing fuel taxes by 100%. Additionally a trade policy of reducing tariffs to compensate the increase in revenues of these taxes is simulated. The tariff reductions are in line with the current Chilean trade policy. Winners and loser from both exercises are identified as well as the main determinants of the results.
    Date: 2005
  2. By: Luis A. Cifuentes; Alan J. Krupnick; Raúl O'Ryan; Michael A. Toman
    Abstract: This working paper is being published with the objective of contributing to the debate on a topic of importance to the region, and to elicit comments and suggestions from interested parties. This paper has not undergone consideration by the SDS Management Team. As such, it does not reflect the official position of the Inter-American Development Bank.
    Date: 2005
  3. By: Mikel González (University of Basque Country); Rob Dellink (Wageningen University)
    Abstract: In this paper we analyze the economic effects of CO2 emission reductions in the Basque Country (Spain) using an applied general equilibrium (AGE) model with specific attention to environment-energy-economy interactions. Environmental policy is implemented through a system of tradable pollution permits that the government auctions. The costs of different levels of CO2 abatement are discussed, focusing on the variations of macroeconomic, sectoral and environment-energy variables. Results show that the costs for achieving the Kyoto targets can remain limited if the appropriate combination of changes in fuel-mix and restructuring of the economy is induced.
    Keywords: Applied general equilibrium, Climate change, Tradable pollution permits, Basque country
    JEL: D58 H21 Q20 Q48
    Date: 2005–09
  4. By: Fredrik Hedenus (Chalmers University); Christian Azar (Chalmers University); Kristian Lindgren
    Abstract: The threat of global warming calls for a major transformation of the energy system the coming century. Modeling technological change is an important factor in energy systems modeling. Technological change may be treated as induced by climate policy or as exogenous. We investigate the importance of induced technological change (ITC) in GET-LFL, an iterative optimization model with limited foresight that includes learning-by-doing. Scenarios for stabilization of atmospheric CO2 concentrations at 400, 450, 500 and 550 ppm are studied. We find that the introduction of ITC reduces the total net present value of the abatement cost over this century by 3-9% compared to a case where technological learning is exogenous. Technology specific polices which force the introduction of fuel cell cars and solar PV in combination with ITC reduce the costs further by 4-7% and lead to significantly different technological solutions in different sectors, primarily in the transport sector.
    Keywords: Energy system model, Limited foresight, Climate policy, Endougenous learning, Technological lock-in
    JEL: O33
    Date: 2005–10
  5. By: Anastasios Xepapadeas (University of Crete); William Brock (University of Wisconsin)
    Abstract: This paper extends Turing analysis to standard recursive optimal control frameworks in economics and applies it to dynamic bioeconomic problems where the interaction of coupled economic and ecological dynamics under optimal control over space creates (or destroys) spatial heterogeneity. We show how our approach reduces the analysis to a tractable extension of linearization methods applied to the spatial analog of the well known costate/state dynamics. We explicitly show the existence of a non-empty Turing space of diffusive instability by developing a linear-quadratic approximation of the original non-linear problem. We apply our method to a bioeconomic problem, but the method has more general economic applications where spatial considerations and pattern formation are important. We believe that the extension of Turing analysis and the theory associated with the dispersion relationship to recursive infinite horizon optimal control settings is new.
    Keywords: Spatial analysis, Pattern formation, Turing mechanism, Turing space, Pontryagin’s principle, Bioeconomics
    JEL: Q2 C6
    Date: 2005–07

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