New Economics Papers
on Resource Economics
Issue of 2009‒10‒03
two papers chosen by

  1. Environmental Policy, Spatial Spillovers and the Emergence of Economic Agglomerations By Anastasios Xepapadeas; Efthymia Kyriakopoulou
  2. An Integrated Approach to Simulate the Impacts of Carbon Emissions Trading Schemes By Xavier Labandeira Villot; Pedro Linares; Miguel Rodríguez

  1. By: Anastasios Xepapadeas (Athens University of Economics and Business); Efthymia Kyriakopoulou (Athens University of Economics and Business)
    Abstract: We explain the spatial concentration of economic activity, in a model of economic geography, when the cost of environmental policy - which is increasing in the concentration of emissions - and an immobile production factor act as centrifugal forces, while positive knowledge spillovers and iceberg transportation costs act as centripetal forces. We study the agglomeration effects caused by trade-offs between centripetal and centrifugal forces. The above effects govern firms’ location decisions and as a result, they define the distribution of economic activity across space. We derive the rational expectations equilibrium and the social optimum, compare the outcomes and characterize the optimal spatial policies.
    Keywords: Agglomeration, Spatial Economics, Environmental Policy, Knowledge Spillovers, Transportation Cost
    JEL: R3 Q5 H2
    Date: 2009–09
  2. By: Xavier Labandeira Villot; Pedro Linares; Miguel Rodríguez
    Abstract: The present paper aims to reliably depict the impact of the European Union Emissions Trading Scheme (EU ETS) on Spain under different assumptions about the industries involved. Prior analyses, based either on highly aggregated macroeconomic or specific electricity industry models, have been limited in degree of detail or scope. Two types of modeling were combined in the present study: general equilibrium was used to assess the impact on different industries and to explain cross-industry changes, and partial equilibrium to suitably model the complex and crucial electricity system. Combining and interrelating these two models yields the effects on price, carbon dioxide (CO2) emissions and distributional patterns in Spain of both the current policy and an alternative in which all industries take part in the EU ETS. Since Spain is a key participant in this scheme, the conclusions and policy implications stemming from this paper are relevant to and useful for post-Kyoto arrangements.
    Date: 2009–09

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