nep-res New Economics Papers
on Resource Economics
Issue of 2006‒05‒13
three papers chosen by
Maximo Rossi
Universidad de la Republica

  1. Demand for Environmental Quality: An Empirical Analysis of Consumer Behavior in Sweden By Ghalwash, Tarek
  2. The income-pollution relationship and the role of income distribution Evidence from Swedish household data By Brännlund, Runar; Ghalwash, Tarek
  3. Recent and prospective adoption of genetically modified cotton : a global computable general equilibrium analysis of economic impacts By Jackson, Lee Ann; Valenzuela, Ernesto; Anderson, Kym

  1. By: Ghalwash, Tarek (Department of Economics, Umeå University)
    Abstract: In this paper we estimate the income elasticity of demand for recreational services and <p> other traditional groups of goods in Sweden and test for potential changes in such <p> estimates over the twentieth century. Due to the difficulty of directly observing the <p> demand for recreational services, we employ an indirect methodology by using the <p> demand for some outdoor goods as a proxy for the demand for recreational services. In <p> line with most prior research, our results confirm the expectation that recreational <p> services, as a public good, is a luxury good in Sweden. Our results also show that the <p> income elasticities for traditional goods are stable over time, indicating that consumer <p> preferences for expenditure on these specific commodities do not change over time.
    Keywords: Household demand; environmental services; income elasticities; Engel curves
    JEL: D12 H41 Q26
    Date: 2006–05–05
  2. By: Brännlund, Runar (Department of Economics, Umeå University); Ghalwash, Tarek (Department of Economics, Umeå University)
    Abstract: The main purpose of this study is to analyze the relationship between pollution and income at household level. The study is motivated by the recent literature emphasizing the importanceof income distribution for the aggregate relation between pollution and income. The main findings from previous studies are that if the individual pollution-income relationship is nonlinear, then aggregate pollution for, say, a whole country, will depend not only on average income, but also on how income is distributed. To achieve our objective we formulate a model for determining the choice of consumption of goods in different types of household. Furthermore we link the demand model to emission functions for the various goods. The theoretical analysis shows that without imposing very restrictive assumptions on preferences and the emission functions, it is not possible to determine a priori the slope or the curvature of the pollution-income relation. The empirical analysis shows that, given the model used, thepollution-income relation has a positive slope in Sweden and is strictly concave for all three pollutants under study (CO2, SO2, NOx), at least in the neighborhood of the observed income for an average household. Further, the results show that the curvature of the relation differs between different types of households. We also show that altering the prevailing income distribution, holding average income constant, will affect aggregate emissions in the sense that an equalization of incomes will give rise to an increase in emissions. One implication is then that the development of aggregate pollution due to growth depends not only on the income level, but also on how growth is distributed.
    Keywords: Household demand; Environmental Kuzents curve; Environmental emissions; Income distribution
    JEL: D12 Q53 Q56
    Date: 2006–05–05
  3. By: Jackson, Lee Ann; Valenzuela, Ernesto; Anderson, Kym
    Abstract: The authors provide estimates of the economic impact of initial adoption of genetically modified (GM) cotton and of its potential impacts beyond the few countries where it is currently common. They use the latest version of the Global Trade Analysis Project (GTAP) database and model. The results suggest that by following the lead of China and South Africa, adoption of GM cotton varieties by other developing countries-especially in Sub-Saharan Africa-could provide even larger proportionate gains to farmer and national welfare than in those first-adopting countries. Furthermore, the estimated gains are shown to exceed those from a successful campaign under the World Trade Organization ' s Doha Development Agenda to reduce and remove cotton subsidies and import tariffs globally.
    Keywords: Crops & Crop Management Systems,Environmental Economics & Policies,Economic Theory & Research,Textiles, Apparel & Leather Industry,Livestock & Animal Husbandry
    Date: 2006–05–01

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