nep-res New Economics Papers
on Resource Economics
Issue of 2008‒12‒01
three papers chosen by
Maximo Rossi
Universidad de la Republica

  1. Bio-energy from Mountain Pine Beetle Timber and Forest Residuals: The Economics Story By Kurt Niquidet; Brad Stennes; G.Cornelis van Kooten
  2. Tradable Permits in Developing Countries: Evidence from air pollution in Santiago, Chile By Coria, Jessica; Sterner, Thomas
  3. Contract Parameters' Impacts on Coal Prices By Lange, Ian

  1. By: Kurt Niquidet; Brad Stennes; G.Cornelis van Kooten
    Abstract: In light of the large volumes of pine killed in the Interior forests in British Columbia by the mountain pine beetle, many are keen to employ forest biomass as an energy source. To assess the feasibility of a wood biomass-fired power plant in the BC Interior it is necessary to know both how much physical biomass might be available over the life of a plant, but also its location because transportation costs are likely to be a major operating cost for any facility. To address these issues, we construct a mathematical programming model of fiber flows in the Quesnel Timber Supply Area of BC over a 25-year time horizon. The focus of the model is on minimizing the cost of supplying feedstock throughout space and time. Results indicate that over the life of the project feedstock costs will more than double, increasing from $54.60/BDt ($0.039/kWh) to $116.14/BDt ($0.083/kWh).
    Keywords: forest economics, biomass and bio-energy, forest pests
    JEL: O13 Q23 Q42
    Date: 2008–11
  2. By: Coria, Jessica (Department of Economics, School of Business, Economics and Law, Göteborg University); Sterner, Thomas (Department of Economics, School of Business, Economics and Law, Göteborg University)
    Abstract: Santiago was one of the first cities outside the OECD to implement a tradable permit program to control air pollution. This paper looks closely at the program’s performance over the past ten years, stressing its similarities and discrepancies with trading programs implemented in developed countries, and analyzing how it has reacted to regulatory adjustments and market shocks. Studying Santiago's experience allows us to discuss the drawbacks and advantages of applying tradable permits in less developed countries
    Keywords: air pollution; environmental policy; tradable permits; developing countries
    JEL: Q53 Q58
    Date: 2008–11–19
  3. By: Lange, Ian
    Abstract: The use of long-term contracts in the procurement of coal for electricity generation is common. The data that is observed from contracts and their transactions are from different levels of the pricing process. Contracts contain the parameters by which all future deliveries are structured, specifying the length of the agreement and acceptable coal attributes. Based on these parameters, a price is later determined for successive coal deliveries and the transaction occurs. This data structure fits well into multi-level models, where each level of the process is empirically estimated. A random intercept model is estimated where the first level is a hedonic model of coal prices. The contract that initiates the delivery is used to connect the two levels of the model. In the second level, contract coefficients from the first level are regressed on contract parameters to determine their impact on how coal is priced. Results find that many contract parameters are statistically significant in the price of coa l.
    Keywords: Tradable Permits; Contracts; Coal; Sulfur Dioxide
    Date: 2008–11

This nep-res issue is ©2008 by Maximo Rossi. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.