New Economics Papers
on Resource Economics
Issue of 2012‒07‒29
eight papers chosen by

  1. Comprehensive watershed management policies for treatment of stockbreeding wastes and reduction of green house gas emission in the Dian Chi Lake, China By Hong Li
  2. Green prices By Tran, Ngoc Bich; Ley, Eduardo
  3. Study on synthetic evaluation of lakes water quality improvement policies in Wuhan City in China By Xuebo Zhan; Yishiro Higano; Huanzheng Du
  4. Comments on EPA’s proposed Carbon Pollution Standard for New Power Plants By Burtraw, Dallas; Fraas, Art; Palmer, Karen; Richardson, Nathan
  5. An Input-Output Analysis of Environmental Effects of Infrastructure Investments in the Greek Economy: The Case of - Attiki Odos - motorway (refereed paper) By Athena Belegri-Roboli; Aggeliki Demertzi; Maria Markaki; Panayotis Michaelides
  6. The Impact on Japanese Industry of Alternative Carbon Mitigation Policies By Sugino, Makoto; Arimura, Toshi H.; Morgenstern, Richard
  7. Life Satisfaction and Air Quality in Europe By Ferreira, Susana; Akay, Alpaslan; Brereton, Finbarr; Cuñado, Juncal; Martinsson, Peter; Moro, Mirko
  8. Analysis of the structure and location of charcoal production in Brazil - time period from 1980 to 2007 By Thais Carvalho; Carlos Bacha

  1. By: Hong Li
    Abstract: Pollutants emitted by pollution generation sources do not only deteriorate the water quality, but the emissions of greenhouse gas also contribute to the green house effect. Material balance of biomass wastes shows there is a trade-off between water pollution and global warming. Therefore, in dealing with the water pollution problems, we also need to adopt methods to decrease greenhouse gas. In this study, we constructed a dynamic linear mathematical model to describe the interrelationships between environmental and socioeconomic indicators and variables. A computer simulation approach was used to make comprehensive environmental policies and to evaluate the most cost effective measures to effectively improve the water quality with the introduction of a biomass recycle plant to control air and water pollutant emissions, as well as generate electric energy. The purpose of this study was to determine the optimum policies to protect the water quality, reduce of green house gas emissions and the develop the local economy as a win-win situation. The simulations were run with the computer-based programming software called LINGO.
    Date: 2011–09
  2. By: Tran, Ngoc Bich; Ley, Eduardo
    Abstract: "Getting the prices right"is a good starting point but is not sufficient for achieving environmentally efficient outcomes. Other policy interventions are often necessary to complement pricing policies. Moreover, when pricing is not at all feasible, regulatory and command-and-control policies must be used instead. This paper focuses on three interrelated themes at the core of the pricing problem. First, there is the incorporation of non-marketed activities with environmental consequences into aggregate measures of economic performance: the so-called"green-GDP."Second, there is the problem regarding the reliable estimation of the valuation of the shadow prices that properly reflect environmental externalities. Third, there is the issue of full-cost pricing that requires the pricing of environmental externalities for guiding both individual and public decision-making.
    Keywords: Environmental Economics&Policies,Economic Theory&Research,Transport Economics Policy&Planning,Markets and Market Access,Climate Change Economics
    Date: 2012–07–01
  3. By: Xuebo Zhan; Yishiro Higano; Huanzheng Du
    Abstract: Wuhan City is located in the central part of China, which is an import foothold of the transportation, manufacturing industry, commerce and education in China. Chinese government appointed Wuhan City as a national pilot reform area of resource-saving and environmentally friendly society at the end of 2007. There is a great deal of fresh water resources in Wuhan City, and Wuhan City is known as 'the city with 100 lakes'. However, about 60% of the lake water resources have became seriously polluted in Wuhan City. The most important reason for water degradation of Wuhan City is the imbalance between rapid economic development and the environment load capacity. In this study, we raised synthetic policies to reduce amount of lake water pollutants and realize the harmonious development between regional economy and water environment. In this paper, we focused on three contamination materials (COD, T-N and T-P) and constructed a model from environmental load, socio-economy and water quality improvement policies. We performed optimization simulation based on linear programming to maximize gross regional production (GRP) and reduce environmental load, and finally we suggested proper policies to improve water quality in this area.
    Date: 2011–09
  4. By: Burtraw, Dallas (Resources for the Future); Fraas, Art (Resources for the Future); Palmer, Karen (Resources for the Future); Richardson, Nathan (Resources for the Future)
    Abstract: The U.S. Environmental Protection Agency’s (EPA) proposed greenhouse gas (GHG) performance standards for power plants are an important step forward in regulating GHGs in terms of both their substantive impact and legal precedent. Nevertheless, we have some concerns with the proposal, which we discuss in the following comments submitted to the agency. The majority of our comments are directed to ways that EPA can increase certainty for the industry—reducing costs and, possibly, improving environmental outcomes. We highlight two specific areas of concern. First, the current proposal contributes to the significant uncertainty facing existing sources. Second, EPA’s proposed averaging option for new facilities that will install carbon capture-and-storage (CCS) technology in the future, although intended to create a flexible pathway, unfortunately creates some new regulatory uncertainty. We also comment on EPA’s decision to combine most coal and gas generators into a single source category. We believe this decision is legally valid and practically important, and that EPA should resist pressure to reconsider.
    Keywords: greenhouse gas emissions, performance standards, new source review, carbon capture and storage technology, U.S. Environmental Protection Agency, uncertainty
    Date: 2012–07–13
  5. By: Athena Belegri-Roboli; Aggeliki Demertzi; Maria Markaki; Panayotis Michaelides
    Abstract: This paper calculates the environmental effects of the Attiki Odos (AOD) motorway investment expenditures in the Athens Metropolitan Area (AMA), Greece. The AOD is incorporated in the Trans-European Networks (TEN) and is a priority project aimed at developing the AMA. Input – output analysis is applied to assess the environmental impacts of the investments expenditures. More precisely, we apply the environmental input-output life cycle assessment (EIOLCA) method to estimate ex-post the environmental burden associated with the investment vector of AOD. In this context, we calculate each type of emission caused by the AOD investments expenditures (direct, indirect and induced), by sector of economic activity during the construction phase (1999-2004). The investment vector is assembled from figures calculated based on corporate data. Next, in order to estimate the impact of technological change on our estimates, we use ceteris paribus the 2005 input – output table, which expresses, in a nutshell, the production technology of 2005. The domestic input-output tables for 2000 and 2005 come from EUROSTAT. In this framework, the main finding of the paper is that technological change between 2000 and 2005, as expressed through each year’s technical coefficients matrix, provided significant results with respect to total output and emissions. Roughly speaking, total output increased approximately by 7% and emissions decreased approximately by 19%.
    Date: 2011–09
  6. By: Sugino, Makoto; Arimura, Toshi H.; Morgenstern, Richard (Resources for the Future)
    Abstract: To address the climate change issue, developed nations have considered introducing carbon pricing mechanisms in the form of a carbon tax or an emissions trading scheme (ETS). Despite the small number of programs actually in operation, these mechanisms remain under active discussion in a number of countries, including Japan. Using an input–output model of the Japanese economy, this paper analyzes the effects of carbon pricing on Japan’s industrial sector. We also examine the impact of a rebate program of the type proposed for energy intensive trade exposed (EITE) industries in U.S. legislation, the Waxman–Markey bill (H.R. 2454), and in the European Union’s ETS. We find that a carbon pricing scheme would impose a disproportionate burden on a limited number of sectors—namely, pig iron, crude steel (converters), cement, and other EITE industries. We also find that the determinant of the increase in total cost differs among industries, depending on the relative inputs of directly combusted fossil fuel, electricity, or steam, as well as intermediate goods. Out of 401 industries, 23 would be eligible for rebates if a Waxman–Markey type of program were adopted in Japan. Specifically, the 85 percent rebate provided to eligible industries under H.R. 2454 would significantly reduce the cost of direct and indirect fossil fuel usage. The E.U. criteria identify 120 industries eligible for rebates. However, the E.U. program only covers direct emissions while the U.S. program includes indirect emissions as well. Overall, despite the differences in coverage, we find that the Waxman–Markey and E.U. rebate programs have roughly similar impacts in reducing the average burdens on EITE industries.
    Keywords: carbon price, competitiveness, input-output analysis, output-based allocations, carbon leakage
    JEL: F14 D21 D57 D58 H23
    Date: 2012–07–13
  7. By: Ferreira, Susana (University of Georgia); Akay, Alpaslan (IZA); Brereton, Finbarr (University College Dublin); Cuñado, Juncal (University of Navarra); Martinsson, Peter (University of Gothenburg); Moro, Mirko (University of Stirling)
    Abstract: Concerns for environmental quality and its impact on people's welfare are fundamental arguments for the adoption of environmental legislation in most countries. In this paper, we analyse the relationship between air quality and subjective well-being in Europe. We use a unique dataset that merges three waves of the European Social Survey with a new dataset on environmental quality including SO2 concentrations and climate in Europe at the regional level. We find a robust negative impact of SO2 concentrations on self-reported life satisfaction.
    Keywords: air quality, SO2 concentrations, subjective well-being, life satisfaction, Europe, European Social Survey, GIS
    JEL: I31 Q51 Q53 Q54
    Date: 2012–07
  8. By: Thais Carvalho; Carlos Bacha
    Abstract: This paper aims to analyze the regional impacts of the steel and environmental policies on the structure and location of charcoal production in Brazil during the time period from 1980 to 2007. Both statistic and interpretative analysis of secondary data, organized in tables or graphs, are used, paying a special attention to the similarities and differences among the database. The main findings of the paper are: (1st) even though charcoal is an archaic energy source, it still represents 3% of the Brazilian energetic matrix and is rather used in the industrial sector, especially in the steel industry, in which there are steelmakers that use coal (to produce flat steel) or charcoal (if they produce long steel); (2nd) charcoal production trend is directly associated to its industrial use (the correlation coefficient between these two variables is 0.986 in time period from 1980 to 2007); (3rd) due to the impacts of industrial and environmental government policies, charcoal production in the Northern and Northeastern Brazil are mainly conducted by small producers making use of native forests; (4th) also in Northern and Northeastern Brazil, independent producers of pig iron are predominating (exporting most of their production) as well as the environmental legislation enforcement is weaker in relation to other Brazilian regions; (5th) otherwise, largest producers, using mostly planted forests, are predominating in Southeastern Brazil, where environmental law enforcement is stronger and where both integrated steelmakers based on charcoal or on coal are present; (6th) the concentration of charcoal production has increased in Brazil, however the inequality among the producers has decreased. The largest producers (with 10,000 or more hectares) accounted for 8.4% of Brazilian charcoal production in 1980 and for 15.6% in 1996, despite the Gini coefficient among charcoal producers has reduced from 0.793 to 0.757 in the same years, respectively. (7th) Regional differences in relation to inequality and concentration of charcoal production among Brazilian regions have taken place and they are specified and analyzed in the paper. By the end, the papers suggest some policies to improve charcoal production in Brazil with more balance in relation to regional distribution.
    Date: 2011–09

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