nep-res New Economics Papers
on Resource Economics
Issue of 2013‒09‒26
six papers chosen by
Maximo Rossi
Universidad de la Republica

  1. How capital-based instruments facilitate the transition toward a low-carbon economy : a tradeoff between optimality and acceptability By Rozenberg, Julie; Vogt-Schilb, Adrien; Hallegatte, Stephane
  2. Carbon Taxes vs. Cap and Trade: A Critical Review By Lawrence H. Goulder; Andrew Schein
  3. Beyond inducement in climate change: Does environmental performance spur environmental technologies? By Claudia Ghisetti; Francesco Quatraro
  4. Using Field Experiments in Environmental and Resource Economics By John A. List; Michael K. Price
  5. Trade Liberalisation and Global-scale Forest Transition By Rafael González-Val; Fernando Pueyo
  6. Free allocations in EU ETS Phase 3: The impact of emissions-performance benchmarking for carbonintensive industry By Stephen Lecourt; Clement Palliere; Oliver Sartor

  1. By: Rozenberg, Julie; Vogt-Schilb, Adrien; Hallegatte, Stephane
    Abstract: This paper compares the temporal profile of efforts to curb greenhouse gas emissions induced by two mitigation strategies: a regulation of all emissions with a carbon price and a regulation of emissions embedded in new capital only, using capital-based instruments such as investment regulation, differentiation of capital costs, or a carbon tax with temporary subsidies on brown capital. A Ramsey model is built with two types of capital: brown capital that produces a negative externality and green capital that does not. Abatement is obtained through structural change (green capital accumulation) and possibly through under-utilization of brown capital. Capital-based instruments and the carbon price lead to the same long-term balanced growth path, but they differ during the transition phase. The carbon price maximizes social welfare but may cause temporary under-utilization of brown capital, hurting the owners of brown capital and the workers who depend on it. Capital-based instruments cause larger intertemporal welfare loss, but they maintain the full utilization of brown capital, smooth efforts over time, and cause lower immediate utility loss. Green industrial policies including such capital-based instruments may thus be used to increase the political acceptability of a carbon price. More generally, the carbon price informs on the policy effect on intertemporal welfare but is not a good indicator to estimate the impact of the policy on instantaneous output, consumption, and utility.
    Keywords: Climate Change Mitigation and Green House Gases,Economic Theory&Research,Climate Change Economics,Investment and Investment Climate,Emerging Markets
    Date: 2013–09–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:6609&r=res
  2. By: Lawrence H. Goulder; Andrew Schein
    Abstract: We examine the relative attractions of a carbon tax, a “pure” cap-and-trade system, and a “hybrid” option (a cap-and-trade system with a price ceiling and/or price floor). We show that the various options are equivalent along more dimensions than often are recognized. In addition, we bring out important dimensions along which the approaches have very different impacts. Several of these dimensions have received little attention in prior literature. A key finding is that exogenous emissions pricing (whether through a carbon tax or through the hybrid option) has a number of attractions over pure cap and trade. Beyond helping prevent price volatility and reducing expected policy errors in the face of uncertainties, exogenous pricing helps avoid problematic interactions with other climate policies and helps avoid large wealth transfers to oil exporting countries.
    JEL: H23 Q50 Q54
    Date: 2013–08
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:19338&r=res
  3. By: Claudia Ghisetti (Département des sciences économiques - Università di Bologna); Francesco Quatraro (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université Nice Sophia Antipolis [UNS])
    Abstract: This paper contributes to the debate on the inducement of environmental innovations by analysing the extent to which endogenous inducement mechanisms spur the generation of greener technologies in contexts characterized by weak exogenous inducement pressures. In the presence of a fragile environmental regulatory framework, inducement can indeed be endogenous and environmental innovations may be spurred by firms' reactions to their direct or related environmental performance. Cross-sector analysis focuses on a panel of Italian regions, over the time span 2003-2007, and is conducted by implementing zero-inflated regression models for count data variables. The empirical results suggest that in a context characterized by a weak regulatory framework, such as the Italian one, environmental performance has significant and complementary within- and between-sector effects on the generation of green technologies.
    Keywords: Green technologies; Environmental Performance; Regional NAMEA; Technological innovation; Knowledge production function
    Date: 2013–09–09
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00860045&r=res
  4. By: John A. List; Michael K. Price
    Abstract: This study showcases the usefulness of field experiments to the study of environmental and resource economics. Our focus pertains to work related to field experiments in the area of ‘behavioral’ environmental and resource economics. Within this rubric, we discuss research in two areas: those that inform i) benefit cost analysis and ii) conservation of resources. Within each realm, we show how field experiments have been able to test the relevant theories, provide important parameters to construct new theories, and guide policymakers. We conclude with thoughts on how field experiments can be used to deepen our understanding of important areas within environmental and resource economics.
    JEL: C9 C93 Q5
    Date: 2013–08
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:19289&r=res
  5. By: Rafael González-Val (Universidad de Zaragoza & Institut d'Economia de Barcelona (IEB), Departamento de Análisis Económico); Fernando Pueyo (Universidad de Zaragoza, Departamento de Análisis Económico)
    Abstract: In this paper, we develop a theoretical model that provides an additional explanation for the forest transition based on a trade liberalisation scenario. Furthermore, in contrast with most explanations, in which the forest transition can only take place at a local level at the expense of other areas, ours is capable of supporting such phenomenon at a worldwide level. We introduce a renewable natural resource (wood), used as an input by manufacturing firms, in a framework with economic geography foundations: transport costs affect the distribution of firms between countries. In a general equilibrium, the results reproduce the forest transition at a global scale: a decrease in transport costs (in particular, that of the natural resource) has a negative effect on the worldwide stock of the natural resource in the short-term; however, this effect is offset during the transition as a consequence of industrial reallocation between countries and eventually disappears in the long-run.
    Keywords: Forest Transition, Natural Resources, Industrial Location, Trade Liberalisation
    JEL: F18 Q20 Q23 R12
    Date: 2013–07
    URL: http://d.repec.org/n?u=RePEc:fem:femwpa:2013.70&r=res
  6. By: Stephen Lecourt; Clement Palliere; Oliver Sartor
    Abstract: From Phase 3 (2013-20) of the European Union Emissions Trading Scheme, carbon-intensive industrial emitters will receive free allocations based on harmonised, EU-wide benchmarks. This paper analyses the impacts of these new rules on allocations to key energy-intensive sectors across Europe. It explores an original dataset that combines recent data from the National Implementing Measures of 20 EU Member States with the Community Independent Transaction Log and other EU documents. The analysis reveals that free allocations to benchmarked sectors will be reduced significantly compared to Phase 2 (2008-12). This reduction should both increase public revenues from carbon auctions and has the potential to enhance the economic efficiency of the carbon market. The analysis also shows that changes in allocation vary mostly across installations within countries, raising the possibility that the carbon-cost competitiveness impacts may be more intense within rather than across countries. Lastly, the analysis finds evidence that the new benchmarking rules will, as intended, reward installations with better emissions performance and will improve harmonisation of free allocations in the EU ETS by reducing differences in allocation levels across countries with similar carbon intensities of production.
    Keywords: European Union Emissions Trading Scheme, CO2 allowance allocation, Emissions-performance benchmarking
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:cec:wpaper:1302&r=res

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