nep-res New Economics Papers
on Resource Economics
Issue of 2020‒05‒25
five papers chosen by
Maximo Rossi
Universidad de la República

  1. Price and network dynamics in the European carbon market By Andreas Karpf; Antoine Mandel; Stefano Battiston
  2. Does a better protected environment enhance happiness in European countries? By Marcella D'Uva; Mariangela Bonasia; Oreste Napolitano; Elina De Simone
  3. Recursos naturales y crecimiento: aspectos macro y microeconómicos, temas regulatorios, derechos ambientales e inclusión social By Katz, Jorge
  4. The Carbon 'Carprint' of Suburbanization: New Evidence from French Cities * By Camille Blaudin de Thé; Benjamin Carantino; Miren Lafourcade
  5. The Environmental Bias of Trade Policy By Joseph S. Shapiro

  1. By: Andreas Karpf (CES - Centre d'économie de la Sorbonne - CNRS - Centre National de la Recherche Scientifique - UP1 - Université Panthéon-Sorbonne); Antoine Mandel (CES - Centre d'économie de la Sorbonne - CNRS - Centre National de la Recherche Scientifique - UP1 - Université Panthéon-Sorbonne, PSE - Paris School of Economics); Stefano Battiston (CAMS - Centre d'Analyse et de Mathématique sociales - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This paper presents an analysis of the European Emission Trading System as a transaction network. It is shown that, given the lack of well-identified trading institutions, industrial actors had to resort to local connections and financial intermediaries to participate in the market. This gave rise to a hierarchical structure in the transaction network. It is then shown that the asymmetries in the network induced market inefficiencies (e.g., increased bid-ask spread) and informational asymmetries, that have been exploited by central agents at the expense of less central ones. Albeit the efficiency of the market has improved from the beginning of Phase II, the asymmetry persists, imposing unnecessary additional costs on agents and reducing the effectiveness of the market as a mitigation instrument.
    Keywords: Network,Carbon market,Climate change,Microstructure
    Date: 2018–09
  2. By: Marcella D'Uva (University Parthenope of Naples); Mariangela Bonasia (University of Naples Parthenope); Oreste Napolitano (University Parthenope of Naples); Elina De Simone (University Parthenope of Naples)
    Abstract: The promotion of a sustainable development and the safeguard of citizens? wellbeing through the international cooperation is one of the fundamental scope of many multilateral environmental agreements. In particular, the Parties who ratified the Aarhus Convention recognized the importance of an ample environmental protection for human well-being of present and future generations. They also stated that the right of everyone is to live in an environment appropriate to their own health. Therefore, the pursuit of happiness and well-being cannot represent a secondary objective in environmental decision-making (United Nations, 2011; Tofallis, 2019). Providing that environmental factors affect human well-being (MacKerron and Mourato, 2013), an interesting question may concern the actions that policy makers can take to promote a safer environment and, as a consequence, to improve the quality of life of the citizens. The answer to this question may offer important policy implications for controlling pollution and environmental degradation that generate negative externalities. The linkage between environmental degradation and well-being has been explained as both a relational and environmental failure of market societies. The capacity to generate growth is negatively affected by mass dissatisfaction in rich societies deriving from an excessive depletion of environmental and social assets, as growth does not necessarily lead to happiness (Bartolini, 2007, p. 351). Hence, public spending on environmental protection responds to a worsening in the quality of life caused by overexploitation of natural resources and aims to restore happiness by providing a more sustainable community development. The role of public expenditure is thus to provide those goods like environmental protection and pollution abatement which, by securing a more sustainable future, may increase the citizens? well-being. The aim of our paper is to study the long-run relationship between per capita environmental protection expenditure (EPE) and happiness at the European level. To our knowledge, this link remains unexplored. We use a dynamic panel heterogeneity analysis through an autoregressive distributed lag model estimated by the dynamic fixed effect, the mean group and the pooled mean group estimators. The sample covers 19 countries in the period 1997-2016. Our results highlight the existence of a direct long-run equilibrium between happiness and environmental protection expenditure. The policy implication suggested by our findings is that government expenditure on environmental protection may not only offer a solution to market failure but, by increasing happiness, could also improve the quality of social life.
    Keywords: environmental protection expenditure; happiness; long-run relationship; dynamic fixed effect; mean group; pooled mean group
    JEL: Q58 I31 C22
    Date: 2020–02
  3. By: Katz, Jorge
    Abstract: El crecimiento basado en la explotación y la industrialización de recursos naturales ha caracterizado una parte importante de las estrategias económicas de los países de América Latina y, en buena medida, sigue siendo un aspecto central en el debate regional. El presente documento constituye un aporte significativo al análisis de las especificidades que caracterizan a este tipo de modelo y que se refieren a aspectos teóricos, macro y microeconómicos, regulatorios e institucionales, así como a los procesos de aprendizaje y de desarrollo tecnológico locales que es necesario abordar. El documento analiza también la experiencia de Chile y muestra cómo en las últimas décadas el Estado chileno ha adoptado un papel de ente subsidiario y se ha dejado en manos del mercado la construcción del sendero de crecimiento y de las reglas del juego, lo que ha llevado a perder, de esta manera, importantes oportunidades para desarrollar localmente ventajas comparativas dinámicas asociadas al cambio tecnológico y a la consolidación de industrias proveedoras de servicios de ingeniería y de producción de equipos para la explotación e industrialización de recursos naturales.
    Date: 2020–05–08
  4. By: Camille Blaudin de Thé (PSE - Paris School of Economics); Benjamin Carantino (PSE - Paris School of Economics); Miren Lafourcade (PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PSE - Paris School of Economics, RITM - Réseaux Innovation Territoires et Mondialisation - UP11 - Université Paris-Sud - Paris 11)
    Abstract: This paper investigates the impact of urban form on household fuel consumption and car emissions in France. We in particular analyze three features of cities commonly referred to as the "3 D's" (Cervero & Kockelman 1997): Density, Design and Diversity. Individual data allow us to identify the effects of urban form and the spatial sorting of households on emissions. We also use instrumental variables to control for other endogeneity issues. Our results suggest that, by choosing to live at the fringe of a metropolitan area instead of the city center, a representative household would consume approximately six extra tanks of fuel per year. More generally, doubling residential Density would result in an annual saving of approximately two tanks per household. However, larger gains would result from better urban Design (job-housing central-ization, improved rail/bus routes to central business districts, reduced pressure for road construction and a less fragmented built environment in urban areas) while improved Diversity (the concentration of various local amenities such as shops and public facilities) can also help lower fuel consumption. Another important finding is that the relationship between the metropolitan population and car emissions in France is bell-shaped, contrary to that in the US, suggesting that small cities do compensate for their lack of Density/Diversity by environmentally-friendly Design.
    Keywords: Sprawl,car emissions,CO 2 footprint,driving,public transport,smart cities
    Date: 2020–05
  5. By: Joseph S. Shapiro
    Abstract: This paper documents a new fact, then analyzes its causes and consequences: in most countries, import tariffs and non-tariff barriers are substantially lower on dirty than on clean industries, where an industry’s “dirtiness” is defined as its carbon dioxide (CO2) emissions per dollar of output. This difference in trade policy creates a global implicit subsidy to CO2 emissions in internationally traded goods and so contributes to climate change. This global implicit subsidy to CO2 emissions totals several hundred billion dollars annually. The greater protection of downstream industries, which are relatively clean, substantially accounts for this pattern. The downstream pattern can be explained by theories where industries lobby for low tariffs on their inputs but final consumers are poorly organized. A quantitative general equilibrium model suggests that if countries applied similar trade policies to clean and dirty goods, global CO2 emissions would decrease and global real income would change little.
    JEL: F13 F18 F6 H23 Q50 Q56
    Date: 2020–05

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