New Economics Papers
on Resource Economics
Issue of 2013‒04‒20
seven papers chosen by

  1. The Effect of EU-ETS on Swedish Industry's Investment in Carbon Mitigating Technologies By Löfgren, Åsa; Wråke, Markus; Hagberg, Tomas; Roth, Susanna
  2. Tax Competition Leading to Strict Environmental Policy By Cees Withagen; Alex Halsema
  3. Political economy of low sulfurization and air pollution control policy in Japan : SOx emission reduction by fuel conversion By Terao, Tadayoshi
  4. Private Sector Initiatives on Measuring and Reporting on Green Growth By Nancy Kamp-Roelands
  5. The Economic Impacts of EU Climate Policy By Rantala, Olavi
  6. Mineral Resource Trade in Chile: Contribution to Development and Policy Implications By Jane Korinek
  7. Energy, Knowledge and Economic Growth By John Foster

  1. By: Löfgren, Åsa (Department of Economics, School of Business, Economics and Law, Göteborg University); Wråke, Markus; Hagberg, Tomas; Roth, Susanna
    Abstract: The European Union’s Emissions Trading Scheme (EU-ETS) is so far the largest emissions trading system in the world. It covers about 12000 installations, representing approximately 45% of EU emissions of CO2, with the objective to establish a carbon price creating incentives for cost efficient reductions of emitted green house gases. In this article we perform an expost analysis where we use detailed firm level data to analyse the effect of the EU ETS on firms’ investment decisions in carbon reducing technologies. In addition we draw on the existing literature and control for firm specific characteristics that has previously been shown to be determinants of firms’ investment in clean technology.<p>
    Keywords: investment; technological adoption; clean technology; EU ETS; firm behavior; climate change; carbon
    JEL: D21 O33 Q53
    Date: 2013–04–02
  2. By: Cees Withagen; Alex Halsema
    Abstract: We study tax competition when pollution matters. Most notably we present a dynamic setting, where the supply of capital is endogenous. It is shown that tax competition may involve stricter environmental policy than the cooperative outcome.
    Keywords: environmental policy, race to the bottom, pollution taxation
    JEL: O13 O11 Q33
    Date: 2012
  3. By: Terao, Tadayoshi
    Abstract: In the early stages of the development of Japan’s environmental policy, sulfur oxide (SOx) emissions, which seriously damage health, was the most important air pollution problem. In the second half of the 1960s and the first half of the 1970s, the measures against SOx emissions progressed quickly, and these emissions were reduced drastically. The most important factor of the reduction was the conversion to a low-sulfur fuel for large-scale fuel users, such as the electric power industry. However, industries started conversion to low-sulfur fuel not due to environmental concerns, but simply to reduce costs. Furthermore, the interaction among the various interests of the electric power industry, oil refineries, the central government, local governments, and citizens over the energy and environmental policies led to the measures against SOx emissions by fuel conversion.
    Keywords: Japan, Environmental policy, Air pollution, Low sulfurization, Crude oil combustion
    JEL: N55 O13 Q28
    Date: 2013–03
  4. By: Nancy Kamp-Roelands
    Abstract: Green growth gains momentum, not only for governments but for companies as well. They see increasingly the opportunities that come along with ‘green growth’ as well as the relevance of mitigating environmental and social risks to which they are exposed. This paper’s central message is that high quality information is necessary to support decisions that drive green growth.
    Date: 2013–04–11
  5. By: Rantala, Olavi
    Abstract: Abstract: The study evaluates the impacts of EU climate policy on the emission allowance price, electricity prices, the competitiveness of industry and macroeconomic developments in the third EU emissions trading period 2013-2020. The economic impacts of climate policy on Finland are compared to the impacts on the entire EU area. It turns out that due to its cold climate and heating energy demand, higher export intensity of the economy and higher energy intensity of the industry Finland pays a higher price for EU climate policy in terms of output and employment losses than the EU on average. The study examines the macroeconomic effects of climate policy also in the more distant future, assuming that EU climate policy is tightened further in the 2020s. Climate policy implemented by emissions trading means that the long-term economic growth in the EU area depends essentially on emission-free electricity production, and no longer on other growth factors, such as labour supply and productivity growth. Available only online
    Keywords: climate policy, emissions trading
    Date: 2012
  6. By: Jane Korinek
    Abstract: Mineral resources present a formidable source of wealth but a formidable challenge to regulate in order to maximize social welfare from their extraction. Some resource-rich countries, such as Chile, have been successful in developing their economies and managing their revenue streams effectively. Strong institutions and regulatory oversight have helped to capitalize on the benefits of the mining sector for economy-wide growth and development in Chile. This paper identifies some of the good practice areas in mining regulation in Chile whose economy has shown strong growth over most of the last two decades. Some of the areas touched on in this paper are the taxation of the minerals sector, management of the tax revenue, and policies designed to foster spillovers into other sectors of the economy and make the most of Chile’s comparative advantage as a long-time global leader in the copper industry. The paper concludes that there is much to be learned from the Chilean experience in regulating its mining sector and many areas where it could be well used as a model for other mineral rich economies wishing to develop their mining sectors to enhance economy-wide growth.
    Keywords: taxation, exchange rates, innovation, regulation, government revenue, Chile, spillovers, sovereign wealth funds, export restrictions, natural resource, price volatility, mining, copper, royalties, tax revenue management, capital-intensive, extractive industries, SWF, mining services, industry standards, world-class suppliers, fiscal responsibility, legal framework, structural balance rule, Ley Reservada del Cobre, non-renewable, resource curse debate, geological service, mineral deposits, exploration, exploitation permits, resource-rich, mineral wealth
    JEL: O13 O19 Q32 Q33 Q38
    Date: 2013–03–01
  7. By: John Foster (School of Economics, University of Queensland)
    Abstract: It is argued that the explosive growth experienced in much of the World since the middle of the 19th Century is due to the exploitation and use of fossil fuels which, in turn, was made possible by capital good innovations that enabled this source of energy to be used effectively. Economic growth, it is argued, has been due to an autocatalytic co-evolution of energy use and the application of new knowledge relating to energy use. A simple ‘evolutionary macroeconomic’ model of economic growth is developed and tested using almost two centuries of British data. The empirical findings strongly support the hypothesis that growth has been due to the presence of a ‘super-radical innovation diffusion process.’ Also, the evidence suggests that large and sustained movements in energy prices have had a very significant long term role to play. The paper concludes with an assessment of the implications of the findings for the future prospects of economic growth in Britain and the possible lessons that can be learned about the future of the global economy.
    Keywords: Energy; Knowledge; Evolution;
    JEL: Q43 O10 O43 P48 Q32
    Date: 2013–03

General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.