New Economics Papers
on Resource Economics
Issue of 2011‒09‒16
two papers chosen by

  1. The Political Economy of International Environmental Agreements: A Survey By Leo Wangler; JJuan-Carlos Altamirano-Cabrera; Hans-Peter Weikard
  2. Environmental Pricing for Energy Generation Sources: Evidence from a Contingent Valuation Study in Chile By Claudia D. Aravena

  1. By: Leo Wangler (School of Economics and Business Administration, Friedrich-Schiller-University Jena); JJuan-Carlos Altamirano-Cabrera (Universidad Autonoma Metropolitana-Azcapotzalco, Department of Economics, Growth and Environment Group, Mexico City, Mexico); Hans-Peter Weikard (Environmental Economics and Natural Resources Group, Wageningen University, The Netherlands.)
    Abstract: This paper surveys the recent literature on the political economy of the formation of international environmental agreements. The survey covers theoretical modelling approaches and empirical studies including experimental work. Central to our survey is the question how the political process impacts different stages of agreement formation and stability. Relevant are the rules defined during pre-negotiations that govern negotiations, ratification and implementation. Strategic delegation and lobbying are directly relevant during the negotiation and ratification phases. Implementation, the choice of policy instruments at the national level, will also be impacted by lobbying and indirectly influence negotiations.
    Keywords: international environmental agreements, coalition formation, coalition stability, environmental policy-making, strategic delegation, interest groups, free-rider incentives, determinants of international environmental cooperation, public goods experiments
    JEL: D72 D62 C72 H41
    Date: 2011–09–05
  2. By: Claudia D. Aravena (Queens University Belfast , UK)
    Abstract: The rapid increase in energy demand in Chile requires a choice for additional production between different kinds of energy sources currently available to the country. Current projects to develop large dams for hydropower in Chilean Patagonia impose an environmental price by damaging the natural environment. The increased use of fossil fuels on the other hand entails an environmental price related to emissions and global warming. This paper studies the debate on the future energy supply in Chile by investigating the preferences of households for different energy sources (fossil fuels, large hydropower in Chilean Patagonia and renewable energy). The paper also aims to value the externalities associated to these traditional methods of energy generation. Using the Contingent Valuation method, the willingness to pay for renewable energy sources over the other alternatives is elicited. Results suggest a strong preference for renewable sources with almost equally large environmental prices imposed by consumers on electricity from large dams and thermoelectric sources. Results also suggest possibility of introduction and promotion of incentives for renewable energy developments supported by consumers through green tariffs or environmental premiums. Key words: contingent valuation, willingness to pay, renewable energy, fossil fuels, hydropower
    Date: 2010–10

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