New Economics Papers
on Resource Economics
Issue of 2012‒05‒08
eight papers chosen by

  1. The Role of Green Fiscal Mechanisms in Developing Countries: Lessons Learned: Case Study By Sophia Peters
  2. A model of coopetitive game for the environmental sustainability of a global green economy By Carfì, David; Schilirò, Daniele
  3. Synergies and Trade-offs between Climate and Local Air Pollution: Policies in Sweden By Bonilla, Jorge; Coria, Jessica; Sterner, Thomas
  4. The Natural Resource Curse: A Survey of Diagnoses and Some Prescriptions By Frankel, Jeffrey A.
  5. Performance measurement in environmental management at the local level : an experiment and proposal with reference to Switzerland By Dafflon, Bernard; Daguet, Sandra
  7. Households’ Willingness to Pay for Improved Urban Waste Management in Mekelle City, Ethiopia By Hagos, Dagnew; Mekonnen, Alemu; Gebreegziabher, Zenebe
  8. Is There an Environmental Kuznets Curve for Bangladesh? By Faridul, Islam; Muhammad, Shahbaz

  1. By: Sophia Peters
    Abstract: With an eye toward the Latin American and Caribbean (LAC) Region, this case study provides a practical guide to fiscal instruments that can promote climate change agendas, focusing on lessons learned from country experiences implementing these mechanisms. As most countries have historically relied on regulatory instruments to meet environmental goals, there are few documented studies of green fiscal policies in developing countries. This case study aims to add to that literature. The paper is divided into the following sections. It first discusses the role of fiscal policy in national climate change programming. It then analyzes the fiscal mechanisms used to promote climate change agendas, drawing on developing country cases. It continues to discuss the challenges that the Latin American context poses for green fiscal policy. Finally, it concludes with lessons learned and recommendations from country experiences implementing these mechanisms.
    Keywords: Environment & Natural Resources :: Climate Change, Economics :: Fiscal Policy, Economics :: Monetary Policy, Energy & Mining :: Renewable Energy, Lessons Learned, Green Fiscal Policy, carbon tax, tax policies, fuel taxes, feed-in tariffs,
    Date: 2012–03
  2. By: Carfì, David; Schilirò, Daniele
    Abstract: The present paper provides a model of coopetitive game for environmental sustainability of a global green economy, looking for a win-win solution within a complex construct of a type originally devised by Branderburger and Nalebuff. The model here suggested is environmental sustainable since it should lead to maintain natural capital, by using mainly renewable resources. In addition, this model of coopetitive games for environmental sustainability aims at reducing emissions of greenhouse gases, determining the reduction of global pollution, in this way it contributes to the establishment of a sustainable and lasting global green economy. Finally, the model determines a change in the patterns of consumption of households towards goods and human behaviors with a lower environmental impact. So the coopetitive strategy, in our model, consists in implementing a set of policy decisions, whose purpose is to be environmental sustainable and to enforce the global green economy. This is why the coopetitive variable is represented by a set of variables that together guarantee the achievement of the environmental sustainability of a global green economy. Thus, this original model aims to enrich the set of tools for environmental policies.
    Keywords: Cooopetitive Games; Coopetition; Environmental Sustainability; Global Green Economy
    JEL: Q42 Q30 C78 C71 Q56 Q20 Q58 C72
    Date: 2012–05
  3. By: Bonilla, Jorge (Department of Economics, School of Business, Economics and Law, Göteborg University); Coria, Jessica (Department of Economics, School of Business, Economics and Law, Göteborg University); Sterner, Thomas (Department of Economics, School of Business, Economics and Law, Göteborg University)
    Abstract: In this paper, we explore the synergies and tradeoffs between abatement of global and local pollution. We built a unique dataset of Swedish heat and power plants with detailed boiler-level data 2001-2009 on not only production and inputs but also emissions of CO2 and NOx. Both pollutants are subject to strict policies in Sweden. CO2 is subject to multiple levels of governance using environmental instruments such as the EU ETS and Swedish carbon taxes; NOx – as a precursor of acid rain and eutrophication – is regulated by a heavy fee. Using a quadratic directional output distance function, we characterize changes in technical efficiency as well as patterns of substitutability in response to the policies mentioned. The fact that generating units face a trade-off between the pollutants indicates a need for policy coordination.<p>
    Keywords: Interaction of environmental policies; shadow pricing; directional distance function; climate change; local pollution.
    JEL: H23 L51 L94 L98 Q48
    Date: 2012–04–30
  4. By: Frankel, Jeffrey A. (Harvard University)
    Abstract: Countries with oil, mineral or other natural resource wealth, on average, have failed to show better economic performance than those without, often because of undesirable side effects. This is the phenomenon known as the Natural Resource Curse. This paper reviews the literature, classified according to six channels of causation that have been proposed. The possible channels are: (i) long-term trends in world prices, (ii) price volatility, (iii) permanent crowding out of manufacturing, (iv) autocratic/oligarchic institutions, (v) anarchic institutions, and (vi) cyclical Dutch Disease. With the exception of the first channel--the long-term trend in commodity prices does not appear to be downward--each of the other channels is an important part of the phenomenon. Skeptics have questioned the Natural Resource Curse, pointing to examples of commodity-exporting countries that have done well and arguing that resource exports and booms are not exogenous. The relevant policy question for a country with natural resources is how to make the best of them.
    Date: 2012–04
  5. By: Dafflon, Bernard (Department of Economics); Daguet, Sandra (Department of Economics)
    Abstract: This paper deals with the management of three environmental policies at the local level: clean water distribution, sewage and wastewater treatment and household solid waste collection and treatment. The argument is that applying the benefit principle for financing these services will enhance allocative efficiency, budget and environmental accountability, and contribute to induce environmental friendly attitude. The paper is organised in two parts. Because there is no fundamental seminal theory in environmental management, Part One summarizes the analytical foundations in combining three disciplines: political economy, law and environmental accounting. The original contribution of the paper is to mix them in a coherent process which also corresponds to the Directives 2000/60 and 2008/98 of the European Parliament in the fields of water policy and solid waste. Part Two develops a possible technique for defining and measuring the performance in order to assess the feasibility of our proposal. The data cover the 168 communes of the Canton Fribourg for the 1996-2009 period. The tested hypothesis is that the cost coverage ratio is an accurate measure of performance in the management of the selected environmental functions. But for accuracy - thus for improvement in policy implementation and practices - the test requires an in-depth command of the real situations because available data need to be treated before measurement. With the proposed procedure, the results verify efficiency in production, full information and no strategic behaviour from economic agents and politicians, and managerial accountability.
    Keywords: benefit principle of taxation ; environmental accounting ; environmental legislation ; environmental policy ; environmental taxation ; polluter-pays principle ; user charges ; user-pays principle ; performance analysis in environmental management
    JEL: H23 Q53 Q58
    Date: 2012–04–26
  6. By: Fabrizio Carmignani; Abdur Chowdhury
    Abstract: Despite the recent growth resurgence, Sub-Saharan Africa (SSA) remains the poorest region in the world. At the same time, it is a region that heavily relies on natural resources. In this paper we investigate the extent to which the second fact helps explain the first one. The distinctive feature of our study is that we take a geographical perspective and allow the effect of natural resources to differ across regions of the world. Our findings suggest that (i) the effect of natural resource intensity on per-capita income is positive and significant in general, but almost negligible and possibly negative in SSA, (ii) natural resources have a negative effect on institutional quality in SSA only, (iii) natural resources hinder human capital accumulation in SSA much more than anywhere else, and (iv) the combination of bad disease environments and large resource endowments accounts for most of the observed cross-regional differences in the effect of natural resources.
    Keywords: Development, Sub-Saharan Africa, natural resources, disease, institutions,human capital
    JEL: O11 O55 Q28
    Date: 2011–11–01
  7. By: Hagos, Dagnew; Mekonnen, Alemu; Gebreegziabher, Zenebe
    Abstract: Cities in developing countries experiencing rapid urbanization and population growth too often lack the financial resources and institutional capacity to provide needed municipal infrastructure for adequate solid waste management, despite citizens’ demand for it. This paper uses a cross-sectional survey of 226 randomly selected households in Mekelle City, Ethiopia, to assess the current municipal sanitation fees and the willingness to pay (WTP) of residents for improved urban waste management, and suggests mechanisms for cost recovery. We used Tobit and probit models in the empirical analysis to determine the factors that influence households’ WTP for improved solid waste management. Results reveal that residents’ WTP for improved solid waste management is significantly related to income and awareness of environmental quality, among other factors. Study results reveal that the current city fee for sanitation is far below the WTP of the residents. The mean WTP we found can be a guide for municipal officials in setting a more appropriate fee that can finance improvements in city SWM, where all households receive collection services, waste is disposed of properly, and recycling and composting features are added.
    Keywords: urban waste management, willingness to pay, cost recovery, developing countries, cities
    JEL: D13 Q51 Q53
    Date: 2012–04–27
  8. By: Faridul, Islam; Muhammad, Shahbaz
    Abstract: The Environmental Kuznets Curve (EKC) posits that environmental degradation increases at the initial stages, but declines as the economy achieves a certain level of economic growth, measured in per capita income terms. This postulated relation produces an inverted Ushaped curve. The topic has drawn much research attention for both developed and emerging economies. Over the past few decades Bangladesh has been achieving remarkable rates of economic growth. A dense population along with a growing industrial base has raised the specter of a looming environmental crisis. The present study empirically investigates the EKC hypothesis for Bangladesh using data from 1971 to 2010. The Autoregressive distributed lag (ARDL) approach to cointegration has been implemented for a long run relation; and the Granger causality within the vector error correction model (VECM) for the short run dynamics. The series are found to be cointegrated. We find that energy consumption is a major contributor to CO2 emissions. Trade openness improves environment, but urbanization worsens it. Economic growth, energy consumption, trade and urbanization Granger cause CO2 emissions. Knowledge of the existence of an EKC relation can help craft appropriate policies to promote economic growth and identify the turning point, and help preserve the environment.
    Keywords: EKC; ARDL; VECM; Bangladesh
    JEL: Q5
    Date: 2012–04–16

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