nep-res New Economics Papers
on Resource Economics
Issue of 2014‒06‒22
eight papers chosen by
Maximo Rossi
Universidad de la Republica

  1. Cournot duopoly and environmental R&D under regulator’s precommitment to an emissions tax By Yasunori Ouchida; Daisaku Goto
  2. Correcting agglomeration economies: How air pollution matters By Marion Drut; Aurélie MAHIEUX
  3. Dirty and perverse: regulation-induced pollution substitution By Gibson, Matthew
  4. Unilateral Climate Policy and Foreign Direct Investment with Firm and Country Heterogeneity By Francesca Sanna-Randaccio; Roberta Sestini; Ornella Tarola
  5. Are Regional Systems Greening the Economy? the Role of Environmental Innovations and Agglomeration Forces By Davide Antonioli; Simone Borghesi; Massimiliano Mazzanti
  6. On the effect of social norms to reduce pollution By A. Mantovani; O. Tarola; C. Vergari
  7. Fracking Growth By Thiemo Fetzer
  8. What drives changes in carbon emissions? An index decomposition approach for 40 countries By Schymura, Michael; Voigt, Sebastian

  1. By: Yasunori Ouchida (Department of Economics, Hiroshima University); Daisaku Goto (Graduate School for International Development and Cooperation, Hiroshima University)
    Abstract: This paper presents examination of environmental R&D of Cournot duopolists with end-of-pipe technology under a regulator’s precommitment to an emissions tax. Results show that, in the presence of technological spillover effect, the government invariably prefers environmental R&D cartelization to environmental R&D competition. In addition, this paper, in stark contrast to those presenting earlier studies, reveals that consumer surplus is not necessarily maximized by environmental research joint venture (ERJV) cartelization, although there invariably exist private incentives to firms for ERJV cartelization as well as social incentives for it.
    Keywords: R&D coordination; Environmental R&D; End-of-pipe technology; Precommit- ment ability; Emission tax
    JEL: O32 L13 Q55 Q58
    Date: 2014–06
  2. By: Marion Drut (EQUIPPE - ECONOMIE QUANTITATIVE, INTEGRATION, POLITIQUES PUBLIQUES ET ECONOMETRIE - Université Lille I - Sciences et technologies - Université Lille II - Droit et santé - Université Lille III - Sciences humaines et sociales - PRES Université Lille Nord de France); Aurélie MAHIEUX (IFSTTAR/AME/DEST - Dynamiques Economiques et Sociales des Transports - IFSTTAR - PRES Université Paris-Est)
    Abstract: The aim of the paper is to correct standard measures of agglomeration economies in order to account for air pollution generated by commuting. This paper examines the impact of nitrogen oxide (NOX) on worker productivity. NOX emissions are primarily released by the transportation sector. Literature on agglomeration economies is abundant and highlights the positive role of density on productivity. Nevertheless, this literature does not take into account the environmental impact generated by a better accessibility, namely commuting. We rst develop a general framework to estimate the agglomeration economies for the 304 French employment areas. In line with the literature, we nd an estimate of 0.05 for the elasticity coe cient of productivity with respect to density. Then, we introduce NOX emissions. The estimates suggest that emissions reduce the positive e ect of density on productivity by more 13%. The model con rms that air pollution matters. Agglomeration economies should be corrected by the environmental impacts associated with the enhancement of accessibility such as the implementation of a new transport infrastructure or policy.
    Keywords: agglomeration economies ; accessibility ; atmospheric pollution ; transport policies
    Date: 2014
  3. By: Gibson, Matthew
    Keywords: Social and Behavioral Sciences
    Date: 2014–06–17
  4. By: Francesca Sanna-Randaccio (Department of Computer, Control & Management Engineering, Sapienza University of Rome); Roberta Sestini (Sapienza University of Rome. Department of Computer, Control & Management Engineering); Ornella Tarola (Sapienza University of Rome, DISSE)
    Abstract: We contribute to the debate on the impact of unilateral climate policy with a two-country two-firm international oligopoly model accounting for endogenous plant location and heterogeneity in both country size and firm’s emissions technology. Our results suggest that, if the carbon price differential is moderate as compared to unit transport costs and the relative size of the highly regulated country is big enough, a no relocation equilibrium may prevail also in the long run. A large market asymmetry coupled with a small technology gap emerges as the only configuration in which unilateral climate policy leads to a fall in world emissions irrespective of the optimal location choice. Thus for being effective and not leading to production relocation, unilateral climate policy should be moderate, implemented by a sufficiently large area and complemented by mechanisms for promoting the international transfer of clean technologies. Welfare implications are also discussed.
    Keywords: Foreign Direct Investment. Carbon leakage. Climate Policy, Emissions Technologies
    JEL: F12 F23 Q58
    Date: 2014–05
  5. By: Davide Antonioli (University of Ferrara); Simone Borghesi (University of Siena); Massimiliano Mazzanti (University of Ferrara)
    Abstract: The adoption and diffusion of environmental innovations (EIs) is crucial to greening the economy and achieving win-win environmental – economic gains. A large and increasing literature has focused on the levers underlying EIs that are external to the firm, such as stakeholders’ pressure and policy pressure. Little attention, however, has been devoted so far to the possible role of local spatial spillovers which are one of the factors affecting sector/geographical specialisations. We analyse a rich dataset that covers the innovative activities and economic performances of firms in the Emilia-Romagna region in Italy, an area rich of manufacturing districts. We analyse EIs drivers and effects on firms’ performances through a two-step procedure. First, we look at the relevance of spatial levers, namely whether the agglomeration of EIs induces EIs in a given firm. Second, we test whether EIs are significantly related to firms’ economic performances. As to the importance of spatial levers, the role of agglomeration turns out to be fairly local in nature: we find that spillovers are significantly inducing innovation within municipal boundaries. Regarding economic performances, firms' productivity is positively related to EI adoption; in particular, firms that jointly adopt EIs and organizational changes show a better economic performance.
    Keywords: Environmental Innovations, Firm Economic Performances, Local Spillovers, Manufacturing, Agglomeration.
    JEL: Q5 Q55
    Date: 2014–04
  6. By: A. Mantovani; O. Tarola; C. Vergari
    Abstract: We analyse how market competition in a vertically differentiated polluting industry is affected by product variants that comply at different levels with "green" social norms. A green consumption behaviour is considered as a byword of good citizenship. Consumer preferences depend on a combination of hedonic quality and compliance with the norms. Assuming that the high hedonic quality variant complies less with the norms than the low hedonic quality one, we characterize the different equilibrium configurations, depending on the perceived intensity of such norms. Then, we focus on the role that institutions may have in using these norms to reduce pollution emissions.
    JEL: D62 L13
    Date: 2014–06
  7. By: Thiemo Fetzer
    Abstract: This paper estimates the effect of the shale oil and gas boom in the United States on local economic outcomes. The main source of exogenous variation to be explored is the location of previously unexplored shale deposits. These have become technologically recoverable through the use of hydraulic fracturing and horizontal drilling. I use this to estimate the localised effects from resource extraction. Every oil- and gas sector job creates about 2.17 other jobs. Personal incomes increase by 8% in counties with at least one unconventional oil or gas well. The resource boom translates into an overall increase in employment by between 500,000 - 600,000 jobs. A key observation is that, despite rising labour costs, there is no Dutch disease contraction in the tradable goods sector, while the non-tradable goods sector contracts. I reconcile this finding by providing evidence that the resource boom may give rise to local comparative advantage, through locally lower energy cost. This allows a clean separation of the energy price effect distinct from the local resource extraction effects.
    Keywords: Resource boom, fracking, shale, spillovers, natural gas, energy prices
    JEL: Q33 O13 N52 R11 L71
    Date: 2014–06
  8. By: Schymura, Michael; Voigt, Sebastian
    Abstract: This study analyzes carbon emission trends and drivers in 40 major economies using the WIOD database, a harmonized and consistent dataset of input-output table time series accompanied by environmental satellite data. We use logarithmic mean Divisia index decomposition to (1) study trends in global carbon emissions between 1995 and 2009, (2) attribute changes in carbon emissions to either influences of economic activity, changes in technology, changes in the structure of the economy, alterations of the fuel mix, or changes in carbon intensities of specific fuel types, and (3) highlight sectoral and regional differences. We first find that heterogeneity in each country is higher than heterogeneity in sectors. This finding might lead to the conclusion that, in order to abate CO2, structural conditions in sectors prevail over regional circumstances. Regarding our results of the decomposition analysis, the drivers of changes in carbon emissions are very heterogeneous. Among the world's top ten emitters, in only three countries - China, Germany and Canada - the main driver of an improved emissions performance was technological change. Conversely, in Japan and Australia structural change of the economy contributed to less severe increases of emissions. The deployment of cleaner energy sources had a positive in some, mainly developed, economies. Moreover, our results for the global level suggest a general move towards more efficient means of production. --
    Keywords: Carbon emissions,Logarithmic mean Divisia index decomposition,WIOD database
    JEL: Q43 C43
    Date: 2014

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