nep-res New Economics Papers
on Resource Economics
Issue of 2017‒02‒12
three papers chosen by
Maximo Rossi
Universidad de la República

  1. Conditions for effective risk sharing against marine pollution: the case of the Ría de Vigo By Grossmann, Schimon; Faure, Michael
  2. Externalities and foreign capital in aquaculture production in developing countries By Wisdom Akpalu; Worku T. Bitew
  3. A Pathway toward Reducing CO2 Emissions from the Industrial Sector By Psarras, Peter C.; Bains, Praveen; Charoensawadpong, Panunya; Carrington, Mark; Comello, Stephen; Reichelstein, Stefan; Wilcox, Jennifer

  1. By: Grossmann, Schimon (Dept. of Business and Management Science, Norwegian School of Economics); Faure, Michael (METRO, Faculty of Law, Maastricht University)
    Abstract: The question of how effective protection against environmental impairment can be provided has spawned much literature. One instrument that is often invoked to provide compensation for environmental damage is insurance. Traditionally, a distinction is made between first and third party insurance. First party insurance may be acquired by potential victims of marine pollution, such as fisheries seriously harmed by ship-source oil spills. Conversely, third party insurance is sought by polluters to cover their legal responsibility and, at the same time, protect the potential victims from polluters unable to meet their financial obligations.
    Keywords: Risk sharing; marine pollution
    JEL: Q50 Q53
    Date: 2017–01–31
  2. By: Wisdom Akpalu; Worku T. Bitew
    Abstract: Most developing countries are increasingly dependent on fresh water based aquaculture (cage culture) to supplement the declining catch from capture fisheries. Yet, the competition for space between capture fisheries and cage culture, pollution generated by cage culture, and fish markets interaction effects have yet to be clearly conceptualized in a bioeconomic framework. Furthermore, the economic viability of cage culture depends on substantial investment thresholds, engendering foreign direct investment in the industry in developing countries. This paper develops a conceptual model for fresh water based aquaculture that account for (i) space allocation, pollution, and interaction of markets for fish; and (ii) foreign capital financing aquaculture production. We found that a Pigouvian tax (optimum ad valorem tax) that corrects the externalities depends on economic and biological parameters in aquaculture and capture fisheries. Correcting for the externalities results in a reduction in aquaculture production but not optimum wild catch. Furthermore, if the aquaculture is financed with foreign capital, then the Pigouvian tax equals the ratio of net to total benefit from aquaculture. Numerical values are used to illustrate the results.
    Keywords: aquaculture, externalities, Pigouvian tax, ad valorem tax
    Date: 2017
  3. By: Psarras, Peter C. (Stanford University); Bains, Praveen (Stanford University); Charoensawadpong, Panunya (Stanford University); Carrington, Mark (Stanford University); Comello, Stephen (Stanford University); Reichelstein, Stefan (Stanford University); Wilcox, Jennifer (CO School of Mines)
    Abstract: It is well documented that a concerted effort is required to reduce the threat of climate change. One vital component in this portfolio of solutions--carbon capture and utilization--has been stalled by significant economic and technical barriers. To overcome these obstacles, it is necessary to identify economically viable capture opportunities--targets that can serve as a driver to lower life cycle costs, increase commercialization efforts and provide an impetus for development in the utilization arena. This study presents a methodology for assessing the levelized cost of CO2 capture, compression, and transport from industrially-sourced capture to regional utilization (sink) opportunities. Industrial sources are targeted over coal and gas-fired power plants given industrial sources often have exhausts with higher CO2 purity, a factor that lends to a lower minimum work of separation and, hence, lower cost of capture. The greater concentration in CO2 results from combination of process emissions with those associated with stationary combustion. These industrial sources, together with a full inventory of geo-referenced utilization opportunities, serve as inputs to a robust cost model that accommodates for differences in source exhaust composition, flow rate, and source-sink geographical relationships. A case-study conducted for the US state of Pennsylvania yields a cost-based ranking of 47 industrial sites, whereby steel and cement manufacturing dominated the least levelized cost options, anchored by high CO2 exhaust content (14 - 33% CO2). Further, we find truck transport is cost-competitive with pipeline for small volumes (
    Date: 2017–01

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