nep-res New Economics Papers
on Resource Economics
Issue of 2014‒11‒22
nine papers chosen by

  1. The Impact of Environmental Taxes on Firm’s Technology and Entry Decisions By Ana Espinola-Arredondo; Boying Liu
  2. Knowledge Spillovers from Clean and Dirty Technologies By Antoine Dechezleprêtre; Ralf Martin; Myra Mohnen
  3. Globalisation, energy usage and sustainability By Raza, Mohsin; Elahi, Muhammad Ather
  4. Carbon Lock-In: The Role of Expectations By Gerard van der Meijden; Sjak Smulders
  5. Highway toll and air pollution: evidence from Chinese cities By Fu, Shihe; Gu, Yizhen
  6. Climate Change, Trade, and Competitiveness: Climate Trade Performance of India, SAARC and Asia Pacific Region By Dinda, Soumyananda
  7. Models of Green Economy in Arab Countries Using the Environmental Performance Index By Driouchi, Ahmed; El Alouani, Hajar
  8. Corporate Environmental Initiatives and Shareholder Value: Focusing on the Role of Environmental Information and Its Credibility By Kimitaka Nishitani; Katsuhiko Kokubu
  9. Going Forward by Looking Backwards on the Environmental Kuznets Curve: an Analysis of CFCs, CO2 and the Montreal and Kyoto Protocols By Thomas Longden

  1. By: Ana Espinola-Arredondo; Boying Liu (School of Economic Sciences, Washington State University)
    Abstract: This paper investigates conditions under which the regulator can strate- gically set an emission fee as a tool to induce Örms to adopt a green tech- nology and, also, promote (or hinder) entry deterrence. We consider a market in which a monopolistic incumbent faces the threat of entry, and Örms can choose between a dirty and a green technology. Our results show that, despite the fact of facing a polluting incumbent, an entrant might Önd it proÖtable to join the market and acquire a clean technology if the environmental tax is stringent enough and the technology is e§ective eliminating pollution. We also demonstrate that a duopoly, in which all Örms acquire green technology, is socially optimal if the technology cost is low and the environmental damage is su¢ ciently high. However, if the environmental damage is low, a partially clean duopoly (in which only one Örm adopts the green technology) is socially optimal under less restrictive conditions on the cost of clean technology
    Keywords: Adoption; Market Structure; Emission ta
    JEL: H23 L12 Q58
    Date: 2014–10
  2. By: Antoine Dechezleprêtre; Ralf Martin; Myra Mohnen
    Abstract: How much should governments subsidize the development of new clean technologies? We use patent citation data to investigate the relative intensity of knowledge spillovers in clean and dirty technologies in two technological fields: energy production and transportation. We introduce a new methodology that takes into account the whole history of patent citations to capture the indirect knowledge spillovers generated by patents. We find that conditional on a wide range of potential confounding factors clean patents receive on average 43% more citations than dirty patents. Knowledge spillovers from clean technologies are comparable in scale to those observed in the IT sector. The radical novelty of clean technologies relative to more incremental dirty inventions seems to account for their superiority. Our results can support public support for clean R&D. They also suggest that green policies might be able to boost economic growth through induced knowledge spillovers.
    Keywords: Innovation spill-overs, Climate Change, Growth, Patents, Clean technology, Optimal climate policy
    JEL: O30 O44 Q54 Q55 Q58 H23
    Date: 2014–09
  3. By: Raza, Mohsin; Elahi, Muhammad Ather
    Abstract: Energy usage plays vital role in the spread of globalisation, through the process of industrialization and free trade of goods and services, has posed challenges in achieving the goal of global sustainability. Industrialized world has economic growth based on fossil fuel which may lead to environmental degradation. Such economic growth has two problems related to the industrial process from the perspective of sustainable development: intensive use of natural resources as raw material and produced goods from industries; and harmful gases emitted as a consequence. The exploitation of natural resources for industrialized process will lead to unsustainability because of earth’s limits of reproduction. Similarly, GHG’s emission from industries responsible for global warming is the main cause of climate change will also lead towards unsustainability. This calls for the need of transformation in current industrial production pattern and switching to sustainable energy options for achieving goal of sustainability of globalisation.
    Keywords: globalisation, sustainability, alternative energy
    JEL: L52 L91 Q2 Q4
    Date: 2014–05–15
  4. By: Gerard van der Meijden (VU University Amsterdam); Sjak Smulders (Tilburg University, the Netherlands)
    Abstract: We argue that expectations about future energy use affect the transition from fossil fuels to renewable substitutes, because of an interaction between innovation and resource scarcity. The paper presents a model of directed technical change to study this interaction. We find that resource-saving technical change erodes the incentives to implement the substitute. Conversely, the anticipation of the substitute being implemented in the future diminishes the incentives to invest in resource-saving technology. As a result, two dynamic equilibria may arise, one with a transition to the substitute and with low resource efficiency, and one without the substitute and with fast efficiency improvements. Expectations determine which equilibrium arises in the decentralized market equilibrium. If multiple equilibria exist, the transition to the substitute generates higher welfare.
    Keywords: Directed technical change, energy transition, multiple equilibria
    JEL: O30 Q32 Q42 Q55
    Date: 2014–08–01
  5. By: Fu, Shihe; Gu, Yizhen
    Abstract: Most highways in urban China are tolled to finance their construction. During the eight-day National Day holiday in 2012, highway tolls are waived nationwide for passenger vehicles. We use this to test highway tolls’ effect on air pollution. Using daily pollution and weather data for 98 Chinese cities in 2011 and 2012 and employing both a regression discontinuity design and differences-in-differences method with 2011 National Day holiday as a control, we find that eliminating tolls increases pollution by 20% and decreases visibility by one kilometer. We also estimate that the toll elasticity of air pollution is 0.16. These findings complement the scant literature on the environmental impact of road pricing.
    Keywords: highway toll; air pollution; visibility; regression discontinuity design; differences-in-differences
    JEL: H23 Q53 R41 R48
    Date: 2014–10–30
  6. By: Dinda, Soumyananda
    Abstract: This paper examines trade performance of climate friendly goods using some trade indices for India and other Asian countries during 2002 - 2008. Climate friendly goods (CFG) are those goods which have less harmful to environment. Paper identifies India’s performance in CFG trade with other Asian nations. Most of the countries in Asia are importers of climate friendly goods and technologies. The Comparative advantage analyses indicate that Hong Kong, China, and Japan have comparative advantage in the production of CFG goods and are net exporters of such products. The competitiveness measures also show that China, Hong Kong and Japan, and Asia Pacific region are major exporter of CFG during 2002-2008. Competitiveness of India, China and South Korea has improved in 2008. Pakistan, Sri-Lanka, and India prefer to trade in CFG regionally and have shown interest in production and trade of clean coal technologies (CCT). SAARC countries have developed expertise in the production of CCT. India and Pakistan enjoy comparative advantage in CCT trade. Few regions have comparative advantage in Solar Photovoltaic Systems (SPVS) and Energy Efficient Lighting (EEL). China is performing better than other in EEL. Japan, China, Malaysia and Macao show good in 2008 for SPVS. Japan, Philippines, China, Hong Kong and South Korea have a comparative advantage in production of other climate friendly items in 2008.
    Keywords: Competitiveness, trade performance, Climate friendly goods, CFG, Clean Coal Technology, CCT, Energy Efficient Lighting, EEL, Solar Photovoltaic System, SPVS, Wind Energy, Wind Technology, Asia, India, SAARC, ASEAN, Asia Pacific, Japan, China, Sri Lanka, Pakistan, Thailand, Malaysia, Macao, Hong Kong, South Korea, RCA, cleaner technology, climate trade
    JEL: C1 C13 F1 F14 F18 O1 O11 O14 Q2 Q27 Q5 Q56
    Date: 2011–04–18
  7. By: Driouchi, Ahmed; El Alouani, Hajar
    Abstract: Abstract This paper aims at characterizing the main trends affecting the environmental and greening economy systems in Arab countries. This is tackled through the use of data based on Environmental Performance Index (EPI) with statistical analysis of its related indicators. Promising results are attained based on descriptive statistics, trend and regression analyzes besides comparison of oil and non-oil exporting countries. The attained results show that Arab countries express different patterns with regard to environmental performance and greening of their economies while statistically significant differences appear between oil and non-oil exporters.
    Keywords: Keywords: green economy, environmental performance index, oil and non-oil exporting countries.
    JEL: O2 Q5
    Date: 2014–09–19
  8. By: Kimitaka Nishitani (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan); Katsuhiko Kokubu (Graduate School of Business Administration, Kobe University)
    Abstract: The goal of this paper is to perform an empirical analysis on the impact on shareholder value of corporate environmental initiatives, focusing on the environmental disclosure and its credibility. The authors verified their hypothesis regarding this, which states, "corporations' environmental initiatives improve shareholder value via release of environmental reports. This trend grows stronger when the credibility of the disclosed information is enhanced." The results of the empirical analysis supported this hypothesis. Specifically, it was revealed that corporations that conduct more environmental initiatives release more environmental reports, and corporations that release more environmental reports have higher shareholder value, and the increased credibility gained via the disclosure of information that includes third-party reviews strengthens this trend even further.
    Keywords: Environmental Disclosures, Environmental Initiatives, Economic Performance, Improvement in Productivity, Increase in Demand, Fixed Effects Instrumental Variables Model
    Date: 2014–10
  9. By: Thomas Longden (Fondazione Eni Enrico Mattei (FEEM))
    Abstract: The success of the Montreal Protocol in comparison to the stagnation seen in negotiations surrounding the Kyoto Protocol highlights the importance of a supportive industry group, pre-existing legislation and commitment by a lead nation, affordable and available substitutes, as well as acceptance of the underlying scientific explanation of the link between emissions and a key detrimental impact. The focus on these contrasting intergovernmental agreements within this paper is driven, in part, by the intention to establish that successful emission reductions tend to be associated with a concerted policy effort rather than the level of per capita income. This is in contrast to the concept of the Environmental Kuznets Curve (EKC) which contends that a significant negative relationship exists between high levels of national income and per capita emissions. While a nation’s level of development and national income are likely to be linked to an ability to make structural changes and/or the implementation of environmental policy, this paper finds no evidence of an EKC consistent quadratic relationship between income and CFC emissions once key considerations, such as biased estimations and policy effort, have been accounted for.
    Keywords: Environmental Kuznets Curve, Montreal Protocol, Kyoto Protocol
    JEL: Q5 Q50 Q58
    Date: 2014–09

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