nep-res New Economics Papers
on Resource Economics
Issue of 2012‒09‒30
ten papers chosen by
Maximo Rossi
Universidad de la Republica

  1. The SO2 Allowance Trading System: The Ironic History of a Grand Policy Experiment By Schmalensee, Richard; Stavins, Robert N.
  2. Sources of Comparative Advantage in Polluting Industries By Fernando Broner; Paula Bustos; Vasco Carvalho
  3. A Study on Environmental Compliance of Indian Leather Industry & its Far-reaching Impact on Leather Exports By Roy, Chandan
  4. Green Public Procurement as an Environmental Policy Instrument:Cost Effectiveness By Lundberg, Sofia; Marklund, Per-Olov
  5. Carbon Tax Salience and Gasoline Demand By Nicholas Rivers; Brandon Schaufele
  6. New variable-population paradoxes for resource allocation By William Thomson
  7. Environmental Shocks, Collaborative Networking, and Organizational Performance:Evidence from Hurricane Rita By Sangyub Ryu
  8. The Economic Implications of Introducing Carbon Taxes in South Africa By Alton, Theresa; Arndt, Channing; Davies, Rob; Hartley, Faaiqa; Makrelov, Konstantin
  9. Green Transformation of Small Businesses: Achieving and Going Beyond Environmental Requirements By Eugene Mazur
  10. Valuing ecosystem diversity in South East Queensland: A life satisfaction approach By Christopher L Ambrey; Christopher M Fleming

  1. By: Schmalensee, Richard (MIT); Stavins, Robert N. (Harvard University and Resources for the Future)
    Abstract: Two decades have passed since the Clean Air Act Amendments of 1990 launched a grand experiment in market-based environmental policy: the SO2 cap-and-trade system. That system performed well but created four striking ironies. First, by creating this system to reduce SO2 emissions to curb acid rain, the government did the right thing for the wrong reason. Second, a substantial source of this system's cost-effectiveness was an unanticipated consequence of earlier railroad deregulation. Third, it is ironic that cap-and-trade has come to be demonized by conservative politicians in recent years, since this market-based, cost-effective policy innovation was initially championed and implemented by Republican administrations. Fourth, court decisions and subsequent regulatory responses have led to the collapse of the SO2 market, demonstrating that what the government gives, the government can take away.
    JEL: Q40 Q48 Q54 Q58
    Date: 2012–08
  2. By: Fernando Broner; Paula Bustos; Vasco Carvalho
    Abstract: We study the determinants of comparative advantage in polluting industries. To do this, we combine data on environmental policy at the country level with data on pollution intensity at the industry level and show that countries with laxer environmental regulation have a comparative advantage in polluting industries. This is consistent with the existence of a pollution haven effect. Further, we address the potential problem of reverse causality. To do so we propose an instrument for environmental regulation based on meteorological determinants of pollution dispersion as identified by the atmospheric pollution literature. We find that the pollution haven effect is causal and economically significant.
    Keywords: international trade, environmental regulation, comparative advantage, air pollution
    JEL: F11 F18 Q53 Q56
    Date: 2012–03
  3. By: Roy, Chandan
    Abstract: Indian Leather industry is recognized as one of the most promising foreign exchange earning sectors since early ’70s of the previous century. The industry was hard hit by two consecutive foreign environment-bans since 1989. Along with that, few domestic environmental regulations also resulted into closure down of a number of leather tanneries in this period. However, the government intervention and the successive compliance measures adopted by the firms ultimately helped the industry to gain momentum in its export sector. This paper analyses the far reaching impact of these environmental regulations on export sector of Indian Leather Industry. Whether this boost in leather export marks a trade off relation between environmental quality and volume of exports is a matter of debate, attempted to be resolved here. This paper, within the limitations of data availability regarding environmental statistics, has determined a positive relation between environmental quality and volume of leather exports and justified that instead of Pollution Haven Hypothesis, Indian Leather Industry rather confirms Porter’s Hypothesis.
    Keywords: Leather Exports; Environmental Regulations; Compliance; Pollution Haven; Porter’s Hypothesis; BOD; CETP; ETP
    JEL: F18 F14
    Date: 2012–05
  4. By: Lundberg, Sofia (Department of Economics, Umeå University); Marklund, Per-Olov (Center for Regional Science at Umeå University)
    Abstract: Estimates by the European Commission indicate that public authorities within the European Union typically purchase goods and services corresponding to approximately 16 percent of GDP per annum. Hence, it is believed, private firms can be stimulated to invest in less polluting production technologies if the market power of public bodies is exerted through Green Public Procurement (GPP) policies and legislation. It is commonly argued that there are considerable possibilities for cost-effective GPP. The aim of this paper is to scrutinize this argument by specifically answer the question whether GPP can work as a cost-effective environmental policy instrument in terms of leading firms to reducing emissions at least cost to society. Our main finding shows that this is not the case.
    Keywords: Auctions; Abatement; Compliance cost; Environmental objectives; Green technology; Investments
    JEL: H57 Q01 Q28
    Date: 2012–09–13
  5. By: Nicholas Rivers (Graduate School of Public and International Affairs, University of Ottawa, 120 University St., Ottawa,Ontario); Brandon Schaufele (Department of Economics, University of Ottawa, 120 University St., Ottawa,Ontario)
    Abstract: We demonstrate that the carbon tax imposed by the Canadian province of British Columbia, a unique carbon pricing policy that comprehensively applies to all fossil fuels, caused a decline in short-run gasoline demand that is significantly greater than would be expected from an equivalent increase in the market price of gasoline. That the carbon tax is more salient, or yields a larger change in demand than equivalent market price movements, is robust to a range of specifications including intuitively plausible and strong instrumental variables. Along with calculating the reduction in carbon dioxide emissions attributable to the tax, we discuss potential explanations for the differential consumer responses to the carbon tax relative to the marketdetermined price.
    Keywords: Carbon tax, tax salience, instrumental variables, environmental pricing, gasoline demand.
    JEL: C26 H23 H29 Q41 Q58
    Date: 2012
  6. By: William Thomson (University of Rochester)
    Abstract: We identify previously unnoticed ways in which agents can strategically distort allocation rules, by affecting the set of “active” agents. (i) An agent withdraws with his endowment. (ii) He gives control of his endowment to someone else and withdraws. (iii) He invites someone in and let him use some of his endowment. (iv) He pre-delivers to some other agent the net trade that the rule would assign to that second agent if that second agent had participated. In (i) and (ii), he and his co-conspirator may end up controlling resources that allow them to reach higher welfare levels than they otherwise would. In (iii) and (iv), he may end up with a bundle that he prefers to the one he would have been assigned had he not engaged in the manipulation. We show that (i) the Walrasian rule is not “withdrawing-proof”, nor “endowments-merging–proof, nor “endowments-splitting–proof”, but that it is “pre-delivery–proof”, and that (ii) canonical selections from the egalitarian-equivalence-in-trades solutions satisfy none of the properties.
    Keywords: resource allocation rules; withdrawal-proofness; endowments-merging–proofness; endowments-splitting–proofness; pre-delivery–proofness
    Date: 2012–09
  7. By: Sangyub Ryu (International University of Japan)
    Abstract: The literature has found that there is a link between an organization's environment and its performance. Some organizational theorists argue that management plays only a marginal role in this link. The present study objects to this argument. The literature on public management has observed that stability in an administrative system and collaborative networking with external actors can manage environmental influences. In an emergency context, public management literature has given more emphasis on collaborative networking than stability due to the need for timely application. Focusing on the role of collaborative networking in the environmentperformance link in an emergency context, this study examined the negative influences of Hurricane Rita on organizational performance. Furthermore, this study investigated how collaborative networking with emergency-relevant actors moderates the negative relationship. From Texas school district data, it was found that days of school closure due to Hurricane Rita (environmental shocks) lowered the overall students' academic achievement (organizational performance), but superintendents' regular meetings with external actors in preparation for emergencies (collaborative networking) moderated the decrease in students' academic performance. The findings of this study support the proposition that management matters to organizational performance.
    Keywords: collaborative networking, public management, emergency management, organizational performance
    Date: 2012–09
  8. By: Alton, Theresa; Arndt, Channing; Davies, Rob; Hartley, Faaiqa; Makrelov, Konstantin
    Abstract: South Africa is considering introducing carbon taxes to reduce greenhouse gas emissions. We evaluate potential impacts using a dynamic economy-wide model linked to an energy sector model. Simulation results indicate that a phased-in carbon tax that reache
    Keywords: carbon tax; growth; employment; income distribution; South Africa
    Date: 2012
  9. By: Eugene Mazur
    Abstract: This report aims to help environmental and other competent authorities in OECD countries to promote green business practices among small and medium-sized enterprises (SMEs). It analyses different ways to establish environmental regulatory requirements for facilities with low environmental risk (most of which are SMEs). It also examines how to design and apply information and market-based tools to promote compliance with such requirements and adoption of cleaner technologies and good environmental management practices. The report suggests several ways to increase the effectiveness of these promotion tools with respect to the SME community.<P> The report addresses the roles of environmental authorities, local governments, business organisations and financial institutions in the greening of small businesses. It reviews in detail the experience of France, Ireland, Korea, the Netherlands and the UK (England and Wales and Scotland) and draws on examples of several other countries.
    Keywords: SMEs, green growth, environmental authorities, environmental compliance
    JEL: K32 K42 L53 M48 O44 O57 Q58
    Date: 2012–09–20
  10. By: Christopher L Ambrey; Christopher M Fleming
    Keywords: Biodiversity, ecosystem diversity, Household Income and Labour Dynamics in Australia (HILDA), life satifaction, non-market valuation
    JEL: I31 Q51 C21 R10
    Date: 2012–10

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