nep-res New Economics Papers
on Resource Economics
Issue of 2019‒01‒14
three papers chosen by
Maximo Rossi
Universidad de la República

  1. Foreign Demand and Greenhouse Gas Emissions: Empirical Evidence with Implications for Leakage By Geoffrey Barrows; Hélène Ollivier
  2. Pro-environmental norms and subjective well-being: panel evidence from the UK By Martin Binder; Ann-Kathrin Blankenberg; Heinz Welsch
  3. Spatial renewable resource extraction under possible regime shift By Christopher Costello; Bruno Nkuiya; Nicolas Quérou

  1. By: Geoffrey Barrows (CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - X - École polytechnique - ENSAE ParisTech - École Nationale de la Statistique et de l'Administration Économique - CNRS - Centre National de la Recherche Scientifique, X - École polytechnique); Hélène Ollivier (PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics)
    Abstract: With asymmetric climate policies, regulation in one country can be undercut by missions growth in another. Previous research finds evidence that regulation erodes the competitiveness of domestic firms and leads to higher imports, but increased imports need not imply increased emissions if domestic sales are jointly determined with export sales or if emission intensity of manufacturing adjusts endogenously to foreign demand. In this paper, we estimate for the first time how production and emissions of manufacturing firms in one country respond to foreign demand shocks in trading partner markets. Using a panel of large Indian manufacturers and an instrumental variable strategy, we find that foreign demand growth leads to higher exports, domestic sales, production, and CO2 emissions, and slightly lower emission intensity. The results imply that a representative exporter facing the average observed foreign demand growth over the period 1995-2011 would have increased CO2 emissions by 1.39% annually as a result of foreign demand growth, which translates into 6.69% total increase in CO2 emissions from Indian manufacturing over the period. Breaking down emission intensity reduction into component channels, we find some evidence of product-mix effects, but fail to reject the null of no change in technology. Back of the envelope calculations indicate that environmental regulation that doubles energy prices world-wide (except in India) would only increase CO2 emissions from India by 1.5%. Thus, while leakage fears are legitimate, the magnitude appears fairly small in the context of India.
    Keywords: leakage,trade and environment,product mix,technological change
    Date: 2018–11
  2. By: Martin Binder (Bard College Berlin); Ann-Kathrin Blankenberg; Heinz Welsch (University of Oldenburg, Department of Economics)
    Abstract: Tying in with a small number of studies on green norms, identity and subjective well-being, this paper studies the relationship between holding a green self-image and life satisfaction in the UK. Focusing on (sub-national) regions as the unit of reference, we investigate if and how the individual-level greenness-satisfaction relationship varies with measures of the prevalence and distribution (disparity) of greenness at the regional level, taking these measures as indicators of a green social norm. Two key findings emerge from our analysis. First, life satisfaction is negatively related to the regional-level mean (prevalence) and positively related to the regional-level diversity of greenness, while being unrelated to the degree of polarization of greenness. Taking the prevalence as a direct and diversity as an inverse measure of the validity of a greenness norm, these results are consistent with the idea that the norm is experienced (by greens) as a standard of reference in the process of green status competition or (by non-greens) as a source of social pressure. Second, the well-being benefits from holding a greener self-image are unrelated to the prevalence and diversity of greenness, but positively related to the polarization of greenness for those either very green or not green at all. This is consistent with the idea that green self-image yields well-being benefits through identity, that is, by identifying with the own group and differentiating oneself from other groups – a possibility that relies on sufficiently large differentiation/polarization of groups. We discuss differences between these results and previous findings based on measures of nation-wide prevalence and disparity of greenness.
    Keywords: subjective well-being, norms, green behavior, green self-image, fractionalization, polarization
    Date: 2019–01
  3. By: Christopher Costello (Bren School of Environmental Science and Management - University of California [Santa Barbara]); Bruno Nkuiya (University of Alberta); Nicolas Quérou (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - INRA - Institut National de la Recherche Agronomique - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier)
    Abstract: How will countries harvesting mobile natural resources react to the possibility of regime shift? We address the non-cooperative exploitation of a migratory renewable resource in the presence of possible regime shift that affects its movement. Motivated by the anticipated effects of climate change, we model a regime shift that will alter the spatial movement patterns of the resource at some point in the future. We develop a stochastic spatial bioeconomic model to address the effects of this class of regime shift on non-cooperative harvest decisions made by decentralized owners such as countries exploiting a migratory fish or other natural resource stock. We find that the threat of a future shift modies the standard golden rule and may induce more aggressive harvest everywhere, irrespective of whether the owner will be advantaged or disadvantaged by the shift. We also identify conditions under which the threat of regime shift induces owners to reduce harvest rates in advance of the shift. Our analysis suggests that different property rights structures (single ownership vs common property) or heterogeneous growth can give rise to previously unexplored incentives and can even reverse conventional wisdom about how countries will react to the prospect of future environmental change
    Keywords: property rights,renewable resources,spatial management,Regime shift,property rights JEL Classification Codes: C73,H23,H73,Q22
    Date: 2018–10

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