nep-res New Economics Papers
on Resource Economics
Issue of 2018‒05‒07
two papers chosen by
Maximo Rossi
Universidad de la República

  1. Climate Policy under Cooperation and Competition between Regions with Spatial Heat Transport By Yongyang Cai; William Brock; Anastasios Xepapadeas; Kenneth Judd
  2. The demand for global and local environmental protection: Experimental evidence from climate change mitigation in Beijing By Loeschel, Andreas; Pei, Jiansuo; Sturm, Bodo; Wang, Ran; Buchholz, Wolfgang; Zhao, Zhongxiu

  1. By: Yongyang Cai; William Brock; Anastasios Xepapadeas; Kenneth Judd
    Abstract: We build a novel stochastic dynamic regional integrated assessment model (IAM) of the climate and economic system including a number of important climate science elements that are missing in most IAMs. These elements are spatial heat transport from the Equator to the Poles, sea level rise, permafrost thaw and tipping points. We study optimal policies under cooperation and various degrees of competition between regions. Our results suggest that when the elements of climate science which are accounted for in this paper are ignored, important policy variables such as the social cost of carbon and adaptation could be seriously biased.
    JEL: C61 C63 Q54 Q58
    Date: 2018–03
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:24473&r=res
  2. By: Loeschel, Andreas; Pei, Jiansuo; Sturm, Bodo; Wang, Ran; Buchholz, Wolfgang; Zhao, Zhongxiu
    Abstract: In this study, the real demand for global and local environmental protection in Beijing, China, is elicited and investigated. Participants from Beijing were offered the opportunity to contribute to voluntary climate change mitigation by purchasing permits from two Chinese CO2 emissions trading schemes (ETS). Purchased permits were withdrawn from the ETS. Since CO2 emissions mitigation is inevitably linked to other local benefits like the reduction in emissions of air pollutants, the aim of our study is to establish the demand for local and global environmental protection. To this end, Beijing and Shenzhen ETS permits were offered. The result is that at low prices the demand for Beijing ETS permits is significantly higher than for Shenzhen ETS permits indicating that a substantial part of the revealed demand for voluntary climate change mitigation in Beijing is driven by concerns for local co-benefits of CO2 emissions reduction. Our research identifies the important role of private benefits in the voluntary provision of the global public good climate change mitigation and provides first experimental evidence for China.
    Keywords: demand for environmental protection,experimental economics,willingness to pay,China,voluntary climate change mitigation,co-benefits
    JEL: Q51 Q54 C93
    Date: 2018
    URL: http://d.repec.org/n?u=RePEc:zbw:zewdip:18017&r=res

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