nep-res New Economics Papers
on Resource Economics
Issue of 2012‒06‒05
eight papers chosen by
Maximo Rossi
Universidad de la Republica

  1. The polluter-doesn't-pay principle By Ralf Martin; Ulrich J. Wagner; Laure B. de Preux
  2. The economics of natural resources: Understanding and predicting the evolution of supply and demand By Hart, Rob
  3. Dynamic and static behaviour with respect to energy use and investment of Dutch Greenhouse firms By Verreth, Daphne M.I.; Emvalomatis, Grigorios; Bunte, Frank H.J.; Oude Lansink, Alfons G.J.M.
  4. Optimal exploitation of a renewable resource with capital limitations. By Asle Gauteplass and Anders Skonhoft
  5. Coastal Zone Management: Climate Change Adaptation & Disaster Risk Management: Case Study Suriname By Farzia Hausil
  6. Environmental Provisions in Free Trade Agreements By Colyer, Dale
  7. From Rio to Rio: A global carbon price signal to escape the great climate inconsistency By Stéphane Dion; Eloi Laurent
  8. Reassessing the Green Paradox By Mark Schopf; Hendrik Ritter

  1. By: Ralf Martin; Ulrich J. Wagner; Laure B. de Preux
    Abstract: By granting discounts on environmental taxes to heavy polluting firms, the government is missing out on significant tax revenues and achieving considerably less in reducing greenhouse gas emissions. That is the central conclusion of research by Ralf Martin and colleagues, which reveals the failings of the UK's climate change levy. Their study shows that firms that enjoy a discount from the levy, claiming that such measures damage their ability to compete in the global economy, do not in fact face higher risks to their competitiveness. Firms that pay the full climate change levy reduce their energy use and their emissions by more than those that get a tax discount.
    Keywords: Industry compensation, industrial relocation, emissions trading, permit allocation, EUETS, firm data
    JEL: H23 H25 Q52 Q54
    Date: 2012–05
  2. By: Hart, Rob (Department of Economics, Swedish University of Agricultural Sciences)
    Abstract: We develop a dynamic model of prices and quantities of non-renewable resources, carefully justifying our assumptions. Resource stocks are inhomogeneous, and there is endogenous directed technological change both in extraction and final-good production. The model explains stylized facts while simultaneously providing a framework for prediction; it yields analytical results in the baseline case, and may be developed to make empirical predictions about real resources. In the baseline case the economy passes through a series of phases: initially resource consumption is low; as technology improves, resource consumption rises and real resource price is constant; in the long run there is a transition to a b.g.p. on which resource consumption is constant and resource price tracks the wage.
    Keywords: Directed technological change; Natural resources; Hotelling rule.
    JEL: O13 O33
    Date: 2012–05–04
  3. By: Verreth, Daphne M.I.; Emvalomatis, Grigorios; Bunte, Frank H.J.; Oude Lansink, Alfons G.J.M.
    Abstract: Dutch greenhouse horticultural firms are energy-intensive and major emitters of greenhouse gases. This paper develops a theoretically consistent model that is able to describe the greenhouse firms` behaviour regarding energy use and investments in energy technology. The behaviour of the firm is modelled using a combination of a dynamic cost function and a static profit function framework. This paper derives the optimal quantity of energy and energy capital from the link between these two functions. The model is applied to a panel of 97 Dutch greenhouse firms over the period 2001-2008. The results show that most Dutch greenhouse firms shift from being net electricity users to net electricity producers in the long run. Investing in energy capital contribute to reducing energy, however will increase the quantity of CO2 emissions due to an increase in electricity production.
    Keywords: Greenhouse horticulture, energy, dynamic duality, short-run marginal cost, adjustment costs, Production Economics, Resource /Energy Economics and Policy,
    Date: 2012–05–15
  4. By: Asle Gauteplass and Anders Skonhoft (Department of Economics, Norwegian University of Science and Technology)
    Abstract: A model of interaction between a renewable natural resource with capital limitations, as exemplified by the optimal investment problem of sheep farming in a Nordic context, is analyzed. The model builds on existing studies from the fisheries literature, but the important difference is that while capital is related to harvesting effort in the fisheries, capital attributes to production capacity to keep the animal stock during the winter in our farm model. The paper provides several results where both optimal steady states and the optimal approach paths are characterized analytically. The results are further supported by a numerical example.
    Date: 2012–05–30
  5. By: Farzia Hausil
    Abstract: This presentation was commissioned by the Regional Policy Dialogue and presented in the meeting Disaster Risk Reduction: Best Practices for Climate-Resilient Coastal Development held in Bridgetown, Barbados on 20 and 21 of October 2011. It discusses the case study of Suriname and the current challenges of its coasts.
    Keywords: Environment & Natural Resources :: Climate Change, Environment & Natural Resources :: Disasters
    Date: 2011–10
  6. By: Colyer, Dale
    Abstract: Numbers of free trade ageements and those with environmental provisons have grownn rapidly. Enviomental measures include those to protect and enhance the environment, environmental cooperation and citizen particpation activties. Many appear to have made important contributions to environmental activities although often constrained by limited funds.
    Keywords: free trade, trade agreements, environment, Agricultural and Food Policy, Environmental Economics and Policy, International Relations/Trade, F13, F18,
    Date: 2012–05–22
  7. By: Stéphane Dion; Eloi Laurent (Observatoire Francais des Conjonctures Economiques)
    Abstract: Two decades after the 1992 Rio Conference,we must admit to collective failure in combating human induced climate change. We cannot escape serious climate disruption if we keep going down that road. We must change direction, and we must move quickly. To this end, we call in this paper for a fine tuning of the international negotiations on climate. We propose refocusing these international efforts on negotiating a global carbon price signal, harmonized in principle but flexible in practice, instead of doggedly spending the next few years attempting to convince countries to accept stricter national targets for quantitative reduction of their greenhouse gas (GHG) emissions.
    Keywords: carbon price, carbon taxation, carbon markets, Kyoto Protocol, climate change.
    JEL: H23 H77 Q48 Q54 Q58
    Date: 2012–05
  8. By: Mark Schopf (University of Paderborn); Hendrik Ritter (University of Magdeburg)
    Abstract: This paper deals with possible foreign reactions to domestic carbon demand reducing policies. It differentiates between demand side and supply side reactions as well as between intra- and intertemporal shifts of greenhouse gas emissions. In our model, we integrate increasing marginal physical extraction costs of fossil fuels into the general equilibrium carbon leakage model of Eichner & Pethig (2011). The results are as follows: The conditions for the emergence of the weak green paradox are similar but somewhat tighter than those derived by Eichner & Pethig (2011). Additionally, a strong green paradox can arise in our model under supplemental constraints. That means a “green" policy measure might not only lead to an acceleration of fossil fuel extraction but to an increase in the cumulative extraction.
    Keywords: Natural Resources, Carbon Leakage, Green Paradox
    JEL: Q31 Q32 Q54
    Date: 2012–05

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