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on Resource Economics |
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Issue of 2013‒06‒24
fourteen papers chosen by |
| By: | Hendrik Ritter (University of Magdeburg); Mark Schopf (University of Paderborn) |
| 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 a stock-dependent marginal physical cost of extracting fossil fuels into Eichner & Pethig's (2011) general equilibrium carbon leakage model. The results are as follows: Under similar but somewhat tighter conditions than those derived by Eichner & Pethig (2011), a weak green paradox arises. Furthermore, a strong green paradox can arise in our model under supplementary constraints. That means a "green" policy measure might not only lead to a harmful acceleration of fossil fuel extraction but to an increase in the cumulative climate damages at the same time. In some of these cases there is even a cumulative extraction expansion, which we consider disastrous. |
| Keywords: | Natural Resources, Carbon Leakage, Green Paradox |
| JEL: | Q31 Q32 Q54 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:pdn:wpaper:62&r=res |
| By: | Mark Schopf (University of Paderborn) |
| Abstract: | This paper deals with possible foreign reactions to unilateral carbon supply reducing policies. It differentiates between demand side and supply side reactions as well as between intra- and intertemporal shifts of greenhouse gas emissions. Ritter & Schopf (2013) integrate stock-dependent marginal physical costs of extracting fossil fuels into Eichner & Pethig’s (2011) general equilibrium carbon leakage model. Using this model, we change the policy instrument from an emissions trading scheme to a deposit preserving system. Thereby, we distinguish between purchasing high-value and low-value reserves. The results are as follows: In case of eastern oil kept underground, the weak and the strong green paradox arise under similar conditions to those derived by Ritter & Schopf (2013). In case of offshore oil kept underground, there is intra- and there can be intertemporal carbon leakage, but neither the present emissions nor the cumulative climate damages increase. |
| Keywords: | Natural Resources, Carbon Leakage, Green Paradox |
| JEL: | Q31 Q32 Q54 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:pdn:wpaper:63&r=res |
| By: | Richard S.J. Tol (Department of Economics, University of Sussex; Institute for Environmental Studies, Vrije Universiteit, Amsterdam, The Netherlands; Department of Spatial Economics, Vrije Universiteit, Amsterdam, The Netherlands; Tinbergen Institute, Amsterdam, The Netherlands); Francisco Estrada (Institute for Environmental Studies, Vrije Universiteit, Amsterdam, The Netherlands; Centro de Ciencias de la Atmósfera, Universidad Nacional Autónoma de México, Mexico) |
| Abstract: | Most functions of economic impact assume that climate change is smooth. We here propose impact functions that have stochastic climate change as an input. These functions are identical in shape and have similar parameters as do deterministic impact functions. The mean stochastic impacts are thus similar to deterministic impacts. Welfare effects are larger, and the stochasticity premium is larger than the risk premium. Stochasticity is more important for past impacts than for future impacts. |
| Keywords: | economic impact of climate change; stochasticity; risk premium |
| JEL: | Q54 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susewp:6113&r=res |
| By: | Akhundjanov, Sherzod; Munoz-Garcia, Felix |
| Keywords: | Environmental Economics and Policy, Industrial Organization, Research and Development/Tech Change/Emerging Technologies, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea13:150202&r=res |
| By: | Zhang, Hongliang |
| Abstract: | I developed a heterogeneous firm model to examine pollution haven effect within the industry. Environmental regulation reduces the number of domestic firms in the industry by forcing the least productive firms out, and shifts the domestic firms into the foreign country. Although there are resource allocations between firms, total welfare is decreasing due to the stringency of regulation. The impact of environmental regulation on the competitiveness is dependent on the relative size of abatement cost to marginal production cost and regulation regimes. |
| Keywords: | Heterogeneous firms, Pollution Haven Effect, Environmental regulation, Environmental Economics and Policy, Research and Development/Tech Change/Emerging Technologies, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea13:150781&r=res |
| By: | Valcu, Adriana; Rabotyagov, Sergey S.; Kling, C.L. |
| Keywords: | Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea13:150174&r=res |
| By: | Iimi, Atsushi |
| Abstract: | Competitive bidding is an important policy tool to procure goods and services from the market at the lowest possible cost. Under traditional public procurement systems, however, it may be difficult to purchase highly customized objects, such as energy efficiency services. This is because not only prices but also other nonmonetary aspects need to be taken into account. Multidimensional auctions are often used to evaluate multidimensional bids. This paper examines the bidding strategy in multidimensional auctions, using data from public energy service company projects in Japan. It shows that multidimensional auctions work well, as theory predicts. The competition effect is significant. In addition, strategic information disclosure, including walk-through and preannouncement of reserve prices, can also promote energy savings and investment. Risk sharing arrangements are critical in the energy service company market. In particular, the public sector should take regulatory risk. |
| Keywords: | Energy Production and Transportation,Climate Change Economics,Climate Change Mitigation and Green House Gases,Debt Markets,Energy Demand |
| Date: | 2013–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6485&r=res |
| By: | Rock, Michael T.; Toman, Michael; Cui, Yuanshang; Jiang, Kejun; Song, Yun; Wang, Yanjia |
| Abstract: | Since the onset of economic reforms in 1978, China has been remarkably successful in reducing the carbon dioxide intensities of gross domestic product and industrial production. Most analysts correctly attribute the rapid decline in the carbon dioxide intensity of industrial production to rising energy prices, increased openness to trade and investment, increased competition, and technological change. China's industrial and technology policies also have contributed to lower carbon dioxide intensities, by transforming industrial structure and improving enterprise level technological capabilities. Case studies of four energy intensive industries -- aluminum, cement, iron and steel, and paper -- show how the changes have put these industries on substantially lower carbon dioxide emissions trajectories. Although the changes have not led to absolute declines in carbon dioxide emissions, they have substantially weakened the link between industry growth and carbon dioxide emissions. |
| Keywords: | Energy Production and Transportation,Technology Industry,ICT Policy and Strategies,Environmental Economics&Policies,Energy and Environment |
| Date: | 2013–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6492&r=res |
| By: | Marshall, Elizabeth; Aillery, Marcel; Williams, Ryan; Malcolm, Scott; Heisey, Paul |
| Keywords: | Agricultural and Food Policy, Environmental Economics and Policy, Political Economy, Resource /Energy Economics and Policy, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea13:150356&r=res |
| By: | Remble, Amber; Britz, Wolfgang; Keeney, Roman |
| Keywords: | Agricultural and Food Policy, Environmental Economics and Policy, Farm Management, Resource /Energy Economics and Policy, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea13:150442&r=res |
| By: | Latta, Gregory S.; Johansson, Robert; Lewandrowski, Jan; Birdsey, Richard |
| Keywords: | Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea13:150312&r=res |
| By: | Fleming, David A.; Measham, Thomas G. |
| Abstract: | Why are some economies likely to grow more slowly when facing natural resource windfalls? What are the causes and consequences of the so-called natural resource curse? These are commonly asked questions in the economics literature, where different studies have address them using different empirical methods, samples and case studies. In a detailed survey, van der Ploeg (2011) reviews 10 different hypotheses commonly used to explain the resource curse at national level. In this article we complement van der Ploeg’s survey by categorizing the 10 resource curse hypotheses into market and political factors in order to better understand the potential consequences of resource windfalls in regions or countries. We then focus on conceptualizing the resource curse at regional level, which in contrast to cross-country evaluations, has received much less attention from academics. Abstracting from environmental and land tenure issues, we develop our conceptual framework by analysing the causality trees that emerge from the two main direct economic shocks produced by resource booms in local areas: labor demand shock and income generation. These causality trees schematize the potential socioeconomic impacts that originate from these effects in a sequence of three hierarchical levels of consequences: First, migration and crowding-out of local firms’ labor, characterized mainly by the inflow of temporary and new resident workers (who also bring new income to local towns) and the movement of labor from local manufacturing and agriculture to the mining sector. Second, the migration patterns and new levels of income will increase the demand for local goods such as housing, services and others, increasing their price in the community. Third, higher demand (and prices) for local goods will produce new jobs in sectors such as construction and services, in contrast to the decline in employment likely to happen in crowded-out local manufacturing. Additional discussion is provided for the indirect socioeconomic outcomes likely to emerge from different points across these three levels of consequences. We also expand on the different factors likely to affect the RC occurrence and magnitude of effects across space. We finish by discussing some policy implications |
| Keywords: | Natural resources curse, regional development, economic growth, mining, Environmental Economics and Policy, Research and Development/Tech Change/Emerging Technologies, Resource /Energy Economics and Policy, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea13:150526&r=res |
| By: | Oliver, Anthony; Khanna, Madhu |
| Abstract: | Renewable Portfolio Standards (RPSs) have been enacted in 29 states in the US, in part to encourage an increase in the amount of electricity generated from renewable sources. Biomass can be utilized in a dedicated bio-power plant to generate electricity, co-fired with coal at an existing power plant, or used to produce cellulosic ethanol that also yields co-product electricity. Considering these options along with a detailed national model of agricultural biomass production allows for the simulation of the effect of existing policies on electricity based biomass demand. Using a multi-period, multi-market, price endogenous model of the U.S. agricultural, electricity, and transportation sectors, the effect of existing state-level RPS is evaluated along with the implications for the agriculture sector. It is found that RPSs increase generation from both biomass and wind-based electricity generation, while decreasing the amount of generation from natural gas, and coal. Due to the co-product electricity generation a greater amount of electricity is generated from biomass under the RFS & RPS scenario than the RPS scenario even though biomass prices are higher. |
| Keywords: | Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea13:150406&r=res |
| By: | Elodie Letort Author-X-Name- First: Elodie Author-X-Name- Last: Letort; Chalachew Temesgen |
| Abstract: | [Paper in French] The Bretagne region is an agricultural area located in the north-west of France. In addition to urban pressure, the competition for farmland is enhanced by strong environmental regulations and incentives. The objective of this paper is to study the determinants of farmland prices and especially the effects of environmental regulations to explain the spatial disparities observed in Bretagne. This paper mainly focuses on environmental policies which are intended to reduce the agricultural pollution of water with nitrates. Several environmental regulations have been implemented in the Bretagne region, which resulted in a complex zoning system with specific measures. To account for this local characteristic, we use the hedonic pricing model and take into account the potential spatial dependencies between farmland prices. For empirical application, we use a dataset of individual transactions in Bretagne from 2007 to 2010. The estimation results show an increase or a decrease in farmland prices in environmentally sensitive areas depending on the types of regulations applied in these areas. The results also emphasize the importance of spatial interaction in the farmland market. |
| Keywords: | environmental policies, hedonic price function, spatial econometrics |
| JEL: | Q51 Q11 C21 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:rae:wpaper:201306&r=res |