nep-res New Economics Papers
on Resource Economics
Issue of 2016‒05‒14
five papers chosen by
Maximo Rossi
Universidad de la República

  1. Are the Central East European Countries Pollution Havens? By Martina Vidovic
  2. Second-Best Renewable Subsidies to De-Carbonize the Economy; Commitment and the Green Paradox By Armon Rezai; Frederick van der Ploeg
  3. Mitigating Climate Change with Forest Climate Tools By Eriksson, Mathilda
  4. Environmental Satisfaction among Residents in Chinese Cities By Wang Chunhua; Zhang Changdong
  5. Transition Town Initiativen im deutschsprachigen Raum: Ein systematischer Überblick über Vorkommen, Schwerpunkte und Einfluss auf die Energiewende vor Ort By Krehl, Stefan

  1. By: Martina Vidovic (Rollins College)
    Abstract: The aim of the paper is to investigate the relationship between environmental stringency and export flows in EU countries and to determine whether the recent accessions of the CEECs into the EU and the subsequent changes in the regulatory framework of new members have affected intra-EU trade flows. Two main hypotheses are tested. First, we test whether the stringency of a country’s environmental regulations results in pollution havens or, on the contrary it results in better export performance. Second, we test whether the results differ by industry (dirty versus clean) and by EU membership tenure (old versus new EU member countries).An augmented gravity model is estimated using panel data for 21 European countries during the period 1999-2008 for the full sample and also separately for the CEECS and the old EU members. We find that while exporters’ environmental tax expenditure differences are positively correlated with bilateral net exports of clean industries, the effect of environmental stringency differences on net exports of dirty industries is not significant when all the industries are treated as a homogeneous group. However, when heterogeneity across specific industries and between two groups of countries is considered, the results differ. We find that while for old-EU countries higher differences in environmental revenues between partner countries are associated with lower net exports of dirty goods for four major-polluter industries, namely for iron and steel, non-ferrous metals, metal manufactures, metal manufactures and petroleum products, this happens only for two industries when CEEs are considered as exporters (petroleum products and fertilizers). Thus our results show weak support for the pollution haven hypothesis for some dirty industries, mainly for net exports from Western EU countries to the rest. Instead, we find support for the “Porter hypothesis†for trade in clean goods.
    Keywords: Pollution Haven Hypothesis, Porter hypothesis, European Union, Trade Flows
    JEL: F14
  2. By: Armon Rezai; Frederick van der Ploeg
    Abstract: Climate change must deal with two market failures: global warming and learning by doing in renewable use. The first-best policy consists of an aggressive renewables subsidy in the near term and a gradually rising and falling carbon tax. Given that global carbon taxes remain elusive, policy makers have to use a second-best subsidy. In case of credible commitment, the second-best subsidy is set higher than the social benefit of learning. It allows the transition time and peak warming close to first-best levels at the cost of higher fossil fuel use (weak Green Paradox). If policy makers cannot commit, the second-best subsidy is set to the social benefit of learning. It generates smaller weak Green Paradox effects, but the transition to the carbon-free takes longer and cumulative carbon emissions are higher. Under first-best and second best with pre-commitment peak warming is 2.1 - 2.3 °C, under second best without commitment 3.5°C, and without any policy temperature 5.1°C above pre-industrial levels. Not being able to commit yields a welfare loss of 95% of initial GDP compared to first best. Being able to commit brings this figure down to 7%.
    Keywords: first-best and second-best policy, commitment, Markov-perfect, Ramsey growth, carbon tax, renewables subsidy, learning by doing, directed technical change
    JEL: H21 Q51 Q54
    Date: 2016
  3. By: Eriksson, Mathilda (CERE and the Department of Economics, Umeå University)
    Abstract: This paper develops the FRICE, a framework that determines optimal levels of forest climate tools in the context of global climate policy. The paper integrates afforestation and avoided deforestation into the well-known global multi-regional integrated assessment model, RICE-2010. The paper finds that climate forest tools can play an essential role in global climate policy and that this role is increasingly important under stringent temperature targets. Under a 2C temperature target, the model reveals that emission reductions from avoided deforestation are quickly exhausted whereas afforestation is capable of substantially reducing emission reductions in both the medium and long run. The model also indicates that the most significant reductions in emissions from avoided deforestation and afforestation can be achieved by focusing policy efforts on tropical forests.
    Keywords: Climate change; Integrated assessment; Carbon sequestration
    JEL: C61 Q23 Q54
    Date: 2016–03–24
  4. By: Wang Chunhua (School of International Trade and Economics, University of International Business and Economics); Zhang Changdong (School of Government, Peking University)
    Keywords: Environmental Satisfaction,Chinese Cities
    Date: 2016–03
  5. By: Krehl, Stefan
    Abstract: Klimawandel, Verknappung der Ressourcen, peak oil, die Sorge um unsere Lebensgrundlagen und deren Erhaltung und die Notwendigkeit zur Energiewende, sind Themen, die die Transition Town Initiativen antreiben, auf eine Veränderung der bisherigen ressourcen- und energieintensiven Lebens- und Wirtschaftsweise, hin zu einer nachhaltigen, ressourcen- und umweltschonenden Gestaltung des Lebens zu wirken. Der Transformationsansatz liegt in Lokalisierungsstrategien, die durch Vielfalt und Flexibiliät eine hohe Resilienz besitzen. Vorliegende Untersuchung prüft, ob dies im deutschsprachigen Raum auch auf die Energiebemühungen der Transition Initiativen zutrifft und welcher Einfluss auf die Energiewende von den lokalen Transition Initiativen zu erwarten ist. Daraus werden mögliche Entwicklungsszenarien abgeleitet.
    Abstract: Climate change, resource depletion, peak oil, the concern about our bases of life and their maintenance and the need of renewable energy systems, are issues that drive the Transition Town Initiatives to work on a change of the existing resource- and energy-intensive lifestyle and economy, towards a sustainable design of life. The transformation approach lies in localization strategies that reach a high resilience through variety and flexibility. This study examines the energy efforts of the Transition Initiatives in the German-speaking area and asks if an effect on the energy turnaround is to be expected. Possible development scenarios are derived.
    Keywords: Transition Town,Zivilgesellschaft,Erneuerbare Energien,Transformation,Nachhaltigkeit,Stadtökonomie,Wirtschaftssoziologie,civil society,renewable energy sources,sustainability,urban economics,economic sociology
    JEL: D70 H40 P11 Q56 R10 Z13
    Date: 2015

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