nep-res New Economics Papers
on Resource Economics
Issue of 2019‒04‒08
two papers chosen by
Maximo Rossi
Universidad de la República

  1. Challenging pollution and the balance problem from rare earth extraction: How recycling and environmental taxation matter By Pascale Combes Motel; Bocar Samba Ba; Sonia Schwartz
  2. Peer influences and proenvironmental behavior: Panel evidence for the role of regional prevalence and diversity By Binder, Martin; Blankenberg, Ann-Kathrin; Welsch, Heinz

  1. By: Pascale Combes Motel (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique); Bocar Samba Ba (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique); Sonia Schwartz (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Rare earth elements extraction induces pollution and the balance problem. In this article, we investigate how far recycling and environmental taxation challenge both questions. In a two-period framework, we assume a monopoly extractor in the first period that is in competition with one recycler in the second period. Our results depend on whether the recycling activity is bounded or not by extracted quantities. When recycling is not constrained, it does not change extraction in period 1 but has pro-competitive effects in period 2. The balance problem favors recycling in period 2 and reduces environmental damages in both periods. If recycling is limited, the extractor adopts a foreclosure strategy in the first period. The balance problem reduces extraction in both periods but also recycling. A second-best environmental taxation enables to reach the first-best outcome except in the second period of the bounded case. Environmental taxes have to be amended in order to take into account the recycling effect. They are never equal to the marginal damage.
    Keywords: Rare earth elements,Pollution,Balance problem,Recycling,Taxation,Cournot competition
    Date: 2019–03–13
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-02065976&r=all
  2. By: Binder, Martin; Blankenberg, Ann-Kathrin; Welsch, Heinz
    Abstract: Pro-environmental behavior depends on the behavior of others. For a UK panel data set, we find that individuals' pro-environmental behavior increases in the behavior of peers in their region. This happens the more so, the greener the self-image of an individual. Diversity of regional green behavior plays a further role, with fractionalization negatively related to pro-environmental behavior and polarization positively so: peer pressure exerts a less strong influence when behaviors are diverse, and a stronger influence when behaviors are very polarized.
    Keywords: pro-environmental behavior,peer influence,prevalence,fractionalization,polarization,UKHLS
    JEL: Q53 Q56
    Date: 2019
    URL: http://d.repec.org/n?u=RePEc:zbw:cegedp:367&r=all

This nep-res issue is ©2019 by Maximo Rossi. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at http://nep.repec.org. For comments please write to the director of NEP, Marco Novarese at <director@nep.repec.org>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.