nep-res New Economics Papers
on Resource Economics
Issue of 2021‒10‒18
five papers chosen by

  1. Do Globalisation and Environmental Policy Stringency affect the Environmental Terms of Trade? Evidence from the V4 countries By Athanasios Kampas; Katarzyna Czech; Stelios Rozakis
  2. Emission distribution and incidence of national mitigation policies among households in Austria By Stefan Nabernegg
  3. Dynamic Resource Allocation with Cost Externality By Hao Zhao; David Porter
  4. Time Preferences, Illness, and Death By Norrgren, Lisa
  5. Transportation and Quality of Life: Evidence from Denmark By Hybel, Jesper; Mulalic, Ismir

  1. By: Athanasios Kampas (Agricultural University of Athens); Katarzyna Czech (Department of Econometrics and Statistics, Institute of Economics and Finance, Warsaw University of Life Sciences); Stelios Rozakis (Technical University of Crete, Lab of Bioeconomy and Biosystems Economics, School of Environmental Engineering)
    Abstract: This paper examines the links between globalisation and environmental policy stringency with the environmental terms of trade. The existence of dynamic links among the variables were explored using cross-correlations and Granger Causality tests. According to the results, the de jure and the de facto globalisation measures have different environmental impacts. Also, despite the fact that all V4 countries have introduced strict environmental policies, especially since 2000, the relative strength of these policies lag behind the maximum OECD stringency. As a result, the pollution heaven hypothesis cannot be excluded. The policy implications of the results are briefly discussed.
    Keywords: Pollution Haven Hypothesis, Globalisation, Ecological Footprint of exports/ imports, Environmental Terms of Trade
    JEL: Q50 Q56 Q51
    Date: 2021
  2. By: Stefan Nabernegg (University of Graz, Austria)
    Abstract: One major barrier for the feasibility of national climate policies is limited public acceptance because of distributional concerns. In the literature, different approaches are used to investigate the incidence of climate policies across income groups. We apply three approaches of incidence analysis to the case of Austria, that vary in terms of data and computational intensity: (i) household fuel expenditure analysis, (ii) household carbon footprints and (iii) macroeconomic general equilibrium modelling with heterogeneous households. As concerns about heterogeneity within low-income groups (horizontal equity) were recently articulated as main objection for effective redistributive revenue recycling in the literature, we compare a pricing instrument of a fuel tax with two non-pricing instruments. We find that expenditure analysis, without considering embodied emissions in consumption, overestimates regressivity as well as within group variations of carbon pricing instruments. An economy-wide fuel tax without redistributive revenue recycling shows a slightly regressive distributional effect in the general equilibrium analysis, driven by the households use of income. This is well approximated by the carbon footprint analysis as income source effects play a minor role for this policy. For the two examples of non-pricing policies, we show that income source effects, which can be only evaluated in a closed macroeconomic model, strongly codetermine the mostly progressive distributional effect. Therefore we derive three general aspects that determine the incidence of climate policies: (i) the consumption patterns of households and the corresponding emission intensities of consumption, (ii) the existing distribution and composition of income, and (iii) the specific policy and policy design considered. For the feasibility of climate policy, we conclude that the evaluation as well as the clear communication of distributional effects is essential, as policy acceptance depends on the perceived individual outcome.
    Keywords: policy incidence; carbon footprint; carbon pricing; climate change; Computable General Equilibrium; distribution; fuel tax; heterogenous households; Multi-Regional Input-Output simulation
    JEL: C43 E01 E31 R31
    Date: 2021–10
  3. By: Hao Zhao (Economic Science Institute, Chapman University); David Porter (Economic Science Institute, Chapman University)
    Abstract: The inter-temporal resource allocation efficiency of a property rights-based common-pool resource system is challenged by a cost externality when one user’s extraction raises the extraction cost for others. This paper builds a dynamic resource allocation model to illustrate the efficiency loss from a standard property rights market. We then create a novel inter-temporal allocation mechanism that preserves dynamic efficiency. Our dynamic resource allocation mechanism includes an optimal planning stage where the agents collectively determine a binding extraction target for each period and a market stage where agents can exchange their extraction rights assigned within each period. The theoretical model demonstrates that our mechanism can achieve the socially optimal allocation in two specific environments. A numerical simulation of our mechanism for a general environment consistently tracks the social optimum and significantly outperforms the traditional property rights market.
    Keywords: Common-pool resource management, cost externality, dynamic efficiency, property rights market, optimal planning
    JEL: D45 D47 D62 Q58
    Date: 2021
  4. By: Norrgren, Lisa (Department of Economics, School of Business, Economics and Law, Göteborg University)
    Abstract: This paper investigates the predictive power of time preferences on the risk of early mortality and illness in adulthood. Using a unique Swedish cohort of 12,956 individuals born in 1953, interviewed in 1966, and followed with register data up to 2018, the paper finds that patient adolescents are 17–21% less likely to die before age 65. Patient adolescents have fewer hospitalizations and diagnoses in their adult life and are less likely to be diagnosed with conditions associated with lifestyle risk factors. Patient adolescents are also more in favor of sports activities and school rules on smoking. The investigated channels for the relationship between time preferences and future health include lifestyle, mother’s time preferences, and the adolescent’s education attainment and future income. Controlling for education and income reduces the coefficient for time preferences on early mortality by one-fourth.
    Keywords: Time preferences; illnes; death
    JEL: D90 D91 I10 I12
    Date: 2021–10
  5. By: Hybel, Jesper (Aalborg University, Department of the Built Environment); Mulalic, Ismir (Department of Economics, Copenhagen Business School)
    Abstract: This paper investigates the importance of transportation for quality of life in Denmark. We first calibrate a simple general equilibrium model to analyse how local wage levels, housing costs, and commuting costs vary across urban areas as well as to construct a quality of life index that measures a representative household's willingness to pay for local amenities. We find that the quality of life is high in large cities. Wages and rents are also substantially higher in the urban areas that are dense. We then regress the quality of life index on observed amenities to infer how much quality of life is associated with transportation. Our empirical results suggest that the quality of the public transport system is particularly important for the quality of life.
    Keywords: Quality of life; Rent gradients; Wage gradients; Commuting costs; Amenities; Transportation
    JEL: H40 J30 O52 R10 R40
    Date: 2021–09–20

General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. 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.