nep-res New Economics Papers
on Resource Economics
Issue of 2011‒07‒13
two papers chosen by
Maximo Rossi
Universidad de la Republica

  1. On Local Environmental Protection By Fabio Fiorillo; Agnese Sacchi
  2. Charging the polluters: A pricing model for road and railway noise By Andersson, Henrik; Ögren, Mikael

  1. By: Fabio Fiorillo; Agnese Sacchi
    Abstract: We hereby propose a model to analyze the provision of environmental protection activities (United Nation 2005) with positive interregional externalities in order to verify - at least in theory - whether this kind of policy is better accomplished through centralized policymaking, which implies a coordinated solution among local representatives, or a decentralized system, whereby local authorities independently finance and implement their environmental protection policy. The research question concerns the identification of criteria on how to allocate powers and functions to environmental management at different tiers of government. Moreover, modelling interregional externalities as a mechanism contributing to lowering the cost of financing environmental policy in each region (production externality), we can assume that different environmental policies are allowed across regions. Given this general framework, considerations favouring either institutional setting in terms of individuals’ welfare seem to involve interaction among these key elements: the extent of the inter-jurisdictional spillovers, the size of local jurisdictions and the regional preferences for environmental protection policy.
    Keywords: Environmental protection activities; Environmental federalism; Externalities; Local government
    JEL: H71 H73 H23 Q58
    Date: 2011–06
    URL: http://d.repec.org/n?u=RePEc:rtr:wpaper:131&r=res
  2. By: Andersson, Henrik (Toulouse School of Economics (UT1, CNRS, LERNA)); Ögren, Mikael (VTI)
    Abstract: This study outlines a method to estimate the short run marginal cost (SRMC) for road and railway noise. It is based on standardized calculation methods for total noise levels and monetary cost estimates from well established evaluation methods. Here official calculation methods and monetary values are used for Sweden, but the estimation method for the SRMC outlined can be directly applied using other standardized noise calculation methods and monetary values. This implies that the current knowledge regarding the calculation of total noise levels and the evaluation of the social cost of noise can be extended to estimate the marginal effect as well. This is an important finding since it enables policy makers to price noise externalities in an appropriate way. Several sensitivity tests run for the SRMC show that: (i) increasing the total traffic on the infrastructure has only a minor influence, (ii) estimates are quite sensitive to the number of exposed individuals, and (iii) to the monetary values used. Hence, benefits transfer, i.e. using monetary values elicited based on road noise for railway noise, should be done with caution or not at all. Results also show that the use of quiet technology can have a significant effect on the SRMC. The fact that this model is able to differentiate not only modes of transport, but also vehicles and even technologies is an important finding. It is essential that the noise charges give the operators the right incentives to choose their optimal allocation.
    Keywords: Externalities; Marginal cost; Noise; Railway; Road
    JEL: D62 Q51 R41
    Date: 2010–12–21
    URL: http://d.repec.org/n?u=RePEc:hhs:vtiwps:2010_015&r=res

This nep-res issue is ©2011 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 http://nep.repec.org. For comments please write to the director of NEP, Marco Novarese at <director@nep.repec.org>. 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.