New Economics Papers
on Resource Economics
Issue of 2011‒02‒05
three papers chosen by

  1. Pollution Control Instruments in the Presence of an Informal Sector By Sudeshna Chattopadhyay; Sarmila Banerjee; Katrin Millock
  2. Decoupling: Is there a Separate Contribution from Environmental Taxation By Muller, Adrian; Åsa, Löfgren; Thomas, Sterner
  3. The Value of Terroir: Hedonic Estimation of Vineyard Sale Prices By Cross, Robin; Plantinga, Andrew J.; Stavins, Robert N.

  1. By: Sudeshna Chattopadhyay (Bidhannagar College - EB-2 Sector - I); Sarmila Banerjee (University of Calcutta - Kolkata); Katrin Millock (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I)
    Abstract: We examines the challenges faced by the regulator in managing pollution when there is a linkage between a formal and an informal industrial sector across the stages of production. The formal sector is more productive than the informal sector and the latter saves cost by evading pollution regulation due to incomplete monitoring. This creates a natural tendency for the more polluting processes to be concentrated in the informal sector. We show the unintended effects of the standard Pigouvian tax (emission fee), which might lead to further deterioration by encouraging the shift of stages in favour of the informal sector. Instead, we propose a second-best hybrid instrument, comprised of a tax on polluting input and a subsidy on proper disposal of residual waste.
    Keywords: Emissions tax, informal sector, pollution control, vertical production.
    Date: 2010–12
  2. By: Muller, Adrian (Socioeconomic Institute University of Zurich, Switzerland); Åsa, Löfgren (Department of Economics, School of Business, Economics and Law, Göteborg University); Thomas, Sterner (Department of Economics, School of Business, Economics and Law, Göteborg University)
    Abstract: Decoupling is a crucial topic in the analysis of sustainable development. Without decoupling, continuing and increasing economic growth in developed and developing countries would come with ever increasing environmental pressures, unavoidably destroying the carrying capacity of ecosystems with corresponding detrimental effects on the environment and societies. The prime example today is climate change. If we do not succeed in drastically decoupling greenhouse gas emissions from economic growth, the mitigation goals necessary to avoid catastrophic impacts will never be reached. Due to this importance of decoupling, it is thus essential to know how different policy instruments may support its achievement. The aim of this paper is to address the question whether there is a separate contribution from environmental taxation to decoupling and to offer researchers some guidance on how to optimally address this question.<p>
    Keywords: decoupling; environmental taxation; pollution
    JEL: O40 Q50 Q58
    Date: 2011–01–26
  3. By: Cross, Robin (Oregon State University); Plantinga, Andrew J. (Oregon State University); Stavins, Robert N. (Harvard University)
    Abstract: We examine the value of terroir, which refers to the special characteristics of a place that impart unique qualities to the wine produced. We do this by conducting a hedonic analysis of vineyard sales in the Willamette Valley of Oregon to ascertain whether site attributes, such as slope, aspect, elevation, and soil types, or designated appellations are more important determinants of price. We find that prices are strongly determined by sub-AVA appellation designations, but not by specific site attributes. These results indicate that the concept of terroir matters economically, although the reality of terroir--as proxied for by locational attributes--is not significant.
    JEL: C20 Q11
    Date: 2011–01

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