nep-res New Economics Papers
on Resource Economics
Issue of 2013‒03‒09
ten papers chosen by
Maximo Rossi
Universidad de la Republica

  1. Environmental Macroeconomics: Environmental Policy, Business Cycles, and Directed Technical Change By Fischer, Carolyn; Heutel, Garth
  2. Green Innovation in Tourism Services By OECD
  3. Environmental Regulation Induced Foreign Direct Investment By Robert J R Elliott; Ying Zhou
  4. How fit are feed-in tariff policies ? evidence from the European wind market By Zhang, Fan
  5. A note on environmental R&D under time-consistent emission tax By Yasunori Ouchida; Daisaku Goto
  6. Russia's food security and climate change: Looking into the future By Kiselev, Sergey; Romashkin, Roman; Nelson, Gerald C.; Mason-D'Croz, Daniel; Palazzo, Amanda
  7. Are Natural Disasters Good for Economic Growth? By Ahlerup, Pelle
  8. Economics of Prioritising Environmental Research: An Expected Value of Partial Perfect Information (EVPPI) Framework By Jeffrey, Scott R.; Pannell, David J.
  9. The Role of the Forest in an Integrated Assessment Model of the Climate and the Economy By Eriksson, Mathilda
  10. Some Fallacies in Econometric Modelling of Climate Change By David Hendry; Felix Pretis

  1. By: Fischer, Carolyn (Resources for the Future); Heutel, Garth (University of North Carolina at Greensboro, Department of Economics)
    Abstract: Environmental economics has traditionally fallen in the domain of microeconomics, but recently approaches from macroeconomics have been applied to studying environmental policy. We focus on two macroeconomic tools and their application to environmental economics. First, real business cycle models can incorporate pollution and pollution policy and be used to answer several questions. How can environmental policy adjust to business cycles? How do different types of policies fare in a context with business cycles? Second, endogenous technological growth is an important component of environmental policy. Several studies ask how policy can be designed to both tackle emissions directly and influence the adoption of clean technologies. We focus on these two aspects of environmental macroeconomics but emphasize that there are many other potential applications.
    Keywords: Real business cycles; Endogenous technological change; Pollution
    JEL: E32 O44 Q50 Q55
    Date: 2013–02–25
  2. By: OECD
    Abstract: The OECD's Towards Green Growth states that green growth is about fostering economic growth and development while ensuring that natural assets continue to provide the resources and environmental services on which our well-being relies. To do this it is necessary to foster investment and innovation, which will underpin sustained growth and give rise to new economic opportunities...
    Date: 2013–02–26
  3. By: Robert J R Elliott; Ying Zhou
    Abstract: The last decade has witnessed a renewed interest in the relationship between environmental regulations and international capital flows. However, empirical studies have so far failed to find conclusive evidence for this so-called pollution haven or race to the bottom effect where foreign direct investment (FDI) is assumed to be attracted to low regulation countries, regions or states. In this paper we present a simple theoretical framework to demonstrate that greater stringency in environmental standards can lead to a strategic increase in capital inflows which we refer to as environmental regulation induced FDI. Our result reveals a possible explanation for the mixed results in the empirical literature and provides an illustration of the conditions under which environmental regulations in the host country can affect the location decision of foreign firms.
    Keywords: FDI, environmental regulations, pollution halo
    JEL: F2 Q5
    Date: 2013–02
  4. By: Zhang, Fan
    Abstract: Feed-in tariffs have become the most widely used policy instrument to promote renewable energy deployment around the world. This paper examines the relation between tariff setting and policy outcome based on wind capacity expansion in 35 European countries over the 1991-2010 period. Using a dynamic panel data model, it estimates the long-run elasticity of wind deployment with respect to the level of feed-in support. The analysis finds that higher subsidies do not necessarily yield greater levels of wind installation. Non-economic barriers and rent-seeking may have contributed to the weak correlation. On the other hand, the length of feed-in contract and guaranteed grid access are important determinants of policy effectiveness. A one-year extension of an original 5-year agreement on average increases wind investment by 6 percent annually, while providing an interconnection guarantee almost doubles wind investment in one year.
    Keywords: Energy Production and Transportation,Climate Change Mitigation and Green House Gases,Carbon Policy and Trading,Climate Change Economics,Markets and Market Access
    Date: 2013–02–01
  5. By: Yasunori Ouchida (Faculty of Economics, Hiroshima University); Daisaku Goto (Graduate School for International Development and Cooperation, Hiroshima University)
    Abstract: In a recent publication in Journal of Economic Behavior and Organization, Poyago-Theotoky (2007) developed a three-stage game model, and also derived theoretical findings and important policy implications for environmental R&D under a time-consistent emission tax. Among the conclusions presented in that paper, it was stated that with inefficient environmental R&D technology and small environmental damage, cooperative environmental R&D engenders larger environmental R&D efforts and greater social welfare than noncooperative environmental R&D does. This note describes that the results of Professor Poyago-Theotoky's (2007, 2010) works are still robust in a relaxed wider parameter range of the environmental damage coefficient. Furthermore, we provide the generalized sufficient condition of damage coefficient to guarantee an interior solution for R&D in an extended framework.
    Keywords: Time-consistent emission tax, Environmental R&D, environmental damage, Cournot duopoly
    JEL: O32 L13 Q55 Q58
    Date: 2011–12
  6. By: Kiselev, Sergey; Romashkin, Roman; Nelson, Gerald C.; Mason-D'Croz, Daniel; Palazzo, Amanda
    Abstract: Global climate change presents long-term risks to agriculture. In general, global climate change is expected to positively affect Russian agriculture. In high and middle latitudes, global warming would expand the growing season. Acreages of agricultural crops may expand toward the north, although yields would likely be lower due to less fertile soil. However, in the south there is a possibility of drier climate, which has a negative impact on crop yields and livestock productivity. In addition, climate change is expected to increase the scarcity of water resources and encourage weed and pest proliferation, and it is expected to increase the short-term risks associated with an increase in extreme weather events and natural disasters. This paper uses data on current conditions to simulate future scenarios and examine possible impacts on crop production in the Russian Federation. It also considers adaptive measures for agriculture in response to climate change. --
    Keywords: climate change,agriculture,food security,IMPACT model
    JEL: Q17 Q18 Q24 Q25 Q54
    Date: 2013
  7. By: Ahlerup, Pelle (Department of Economics, School of Business, Economics and Law, Göteborg University)
    Abstract: Natural disasters plague the populations of many countries, and the international community often seeks to alleviate the human suffering by means of humanitarian aid. Do natural disasters also have negative effects on aggregate economic growth? This paper shows that natural disasters on average have a positive association with subsequent economic performance. This overall positive association is driven by the experience of democratic developing countries that receive humanitarian aid.<p>
    Keywords: natural disasters; economic growth; humanitarian aid.
    JEL: O11 Q54
    Date: 2013–02–20
  8. By: Jeffrey, Scott R.; Pannell, David J.
    Abstract: Significant public funds are spent on projects designed to improve environmental quality. Design and implementation of these initiatives is contingent on knowledge generated from environmental research. Funding agencies have many demands for research dollars while having limited research budgets. A prioritisation process is required for efficient and effective allocation of research funds. A review of research prioritisation literature suggests that ad hoc approaches are often used for ex ante analyses examining the value of environmental research (e.g., Delphi techniques, information gaps from literature reviews). This paper characterises environmental research prioritisation in the form of an economic decision problem, formulated using expected value of information concepts. An implicitly Bayesian modelling approach is developed with research priorities being made based on estimates of expected value of partial perfect information (EVPPI). Considerations and challenges associated with empirical implementation of EVPPI are discussed and a hypothetical example is provided to illustrate use of this approach in informing environmental research funding decisions.
    Keywords: Environmental Research, Research Prioritisation, Value of Information, Expected Value of Partial Perfect Information, Environmental Economics and Policy, Q50, Q51, Q57,
    Date: 2013–02–22
  9. By: Eriksson, Mathilda (CERE, Centre for Environmental and Resource Economics)
    Abstract: This paper develops a model to evaluate then potential role of the global forest as an option to reduce climate change. The approach is to assess the forest as both a source of renewable energy and a potential storage of carbon together with non-carbon energy. The analysis shows that the global forest plays a signicant part in the carbon cycle and should be used together with non-carbon energy strategies. The tropical forest carbon storage proves to be especially important and the emphasis is to enlarge the growing stock, rather than increase the use of forest bioenergy. The positive dynamic eects of increasing bioenergy harvest is too weak to overpower the instant and future benets of increasing the growing forest biomass. Reducing tropical deforestation in the near future proves to be important for reducing climate change.
    Keywords: Integrated Assessment Models; Forest
    JEL: Q23 Q54
    Date: 2013–02–12
  10. By: David Hendry; Felix Pretis
    Abstract: We demonstrate major flaws in the statistical analysis of Beenstock, Reingewertz and Paldor (2012), discrediting their initial claims as to the different degrees integrability of CO2 and temperature.
    Keywords: Econometric modelling, location shifts, data measurements, climate change
    JEL: C1 Q5
    Date: 2013–02–08

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