nep-res New Economics Papers
on Resource Economics
Issue of 2012‒04‒23
five papers chosen by
Maximo Rossi
Universidad de la Republica

  1. Asia’s Wicked Environmental Problems By Stephen Howes; Paul Wyrwoll
  2. Reviewing the climate change adaptation readiness of the Australian national electricity market institutions By Bell, William
  3. Economic structure and key sectors analysis of greenhouse gas emissions in Uruguay By Matias Piaggio; Vicent Alcantara Escolano; Emilio Padilla Rosa
  4. German car buyers' willingness to pay to reduce CO2 emissions By Achtnicht, Martin
  5. Community Pressure for Green Behaviour By Anthony Heyes; Sandeep Kapur

  1. By: Stephen Howes (Asian Development Bank Institute (ADBI)); Paul Wyrwoll
    Abstract: The developing economies of Asia are confronted by serious environmental problems that threaten to undermine future growth, food security, and regional stability. This study considers four major environmental challenges that policymakers across developing Asia will need to address towards 2030 : water management, air pollution, deforestation and land degradation, and climate change. We argue that these challenges, each unique in their own way, all exhibit the characteristics of “wicked problemsâ€. As developed in the planning literature, and now applied much more broadly, wicked problems are dynamic, complex, encompass many issues and stakeholders, and evade straightforward, lasting solutions. Detailed case studies are presented to illustrate the complexity and significance of Asia’s environmental challenges, and also their nature as wicked problems. The most important implication of this finding is that there will be no easy or universal solutions to environmental problems across Asia. This is a caution against over-optimism and blueprint or formulaic solutions. It is not, however, a counsel for despair. We suggest seven general principles which may be useful across the board. These are : a focus on co-benefits; an emphasis on stakeholder participation; a commitment to scientific research; an emphasis on long-term planning; pricing reform; tackling corruption, in addition to generally bolstering institutional capacity with regard to environmental regulation; and a strengthening of regional approaches and international support.
    Keywords: Environmental Problems, Asia, developing economies of Asia, developing Asia
    JEL: O44 Q58 Q56 O10 O53 Q28 Q53
    Date: 2012–02
  2. By: Bell, William
    Abstract: This paper aims to identify climate change adaptation issues in the Australian National Electricity Market by assessing the robustness of the institutional arrangements that support effective adaptation. The paper finds that three major factors are hindering or are required for adaptation to climate change: institutional fragmentation both economically and politically; distorted transmission and distribution investment deferment mechanisms; and lacking mechanisms to develop a diversified energy portfolio. Proposed solutions to the three factors are discussed. These proposed solutions are tested and examined in forthcoming reports.
    Keywords: Climate change adaptation; electricity demand; electricity generation; transmission; distribution; Australian National Electricity Market
    JEL: R22 O13 Q3 Q01 Q2 Q4 Q5 L94 R38
    Date: 2012–02–02
  3. By: Matias Piaggio (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona); Vicent Alcantara Escolano (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona); Emilio Padilla Rosa (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona)
    Abstract: This paper identifies the key sectors in greenhouse gas emissions of the Uruguayan economy through input–output analysis. This allows to precisely determine the role played by the different productive sectors and their relationship with other sectors in the relation between the Uruguayan productive structure and atmospheric pollution. In order to guide policy design for GHG reduction, we decompose sectors liability between the pollution generated through their own production processes and the pollution indirectly generated in the production processes of other sectors. The results show that all the key polluting sectors for the different contaminants considered are relevant because of their own emissions, except for the sector Motor vehicles and oil retail trade, which is relevant in CO2 emissions because of its pure, both backward and forward, linkages. Finally, the best policy channels for controlling and reducing GHGs emissions are identified, and compared with the National Climate Change Response Plan (NCCRP) lines of action.
    Keywords: Greenhouse gas emissions, input–output, Key sectors, Uruguay
    JEL: C67 Q40 Q43 Q56
    Date: 2012–04
  4. By: Achtnicht, Martin
    Abstract: Motorized individual transport strongly contributes to global CO2 emissions, due to its intensive usage of fossil fuels. Current political efforts addressing this issue (i.e. emission performance standards in the EU) are directed towards car manufacturers. This paper focuses on the demand side. It examines whether CO2 emissions per kilometer is a relevant attribute in car choices. Based on a choice experiment among potential car buyers from Germany, a mixed logit specification is estimated. In addition, distributions of willingness-to-pay measures for an abatement of CO2 emissions are obtained. The results suggest that the emissions performance of a car matters substantially, but its consideration varies heavily across the sampled population. In particular, some evidence on gender, age and education effects on climate concerns is provided. --
    Keywords: Choice experiment,CO2 emissions,Mixed logit,Passenger cars,Willingness to pay
    JEL: C25 D12 Q51
    Date: 2012
  5. By: Anthony Heyes (University of Ottawa); Sandeep Kapur (Department of Economics, Mathematics & Statistics, Birkbeck)
    Abstract: The desire to avoid rousing community hostility may encourage firms to behave in an environmentally responsible manner. It has been conjectured that such 'informal regulation' could effectively replace formal intervention in some settings, and usefully complement it in others. We explore these conjectures with mixed results. Informal regulation is necessarily less efficient than a well-designed formal alternative and the pattern of green behaviour induced by the threat of community hostility may increase or decrease welfare. The existence of community pressure may increase or decrease the optimal calibration of a formal intervention (in this case an environmental tax) and may complement or detract from the incentives generated by an optimally-calibrated tax.
    Keywords: community pressure, informal regulation, compliance, enforcement
    Date: 2012–04

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