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on Environmental Economics |
| By: | Sedjo, Roger A. (Resources for the Future) |
| Abstract: | Biomass, a renewable energy source, has been viewed as “carbon neutral”—that is, its use as energy is presumed not to release net carbon dioxide. However, this assumption of carbon neutrality has recently been challenged. In 2010 two letters were sent to the Congress by eminent scientists examining the merits—or demerits—of biomass for climate change mitigation. The first, from about 90 scientists (to Nancy Pelosi and Harry Reid, from W.H. Schlesinger et al. May 17, 2010), questioned the treatment of all biomass energy as carbon neutral, arguing that it could undermine legislative emissions reduction goals. The second letter, submitted by more than 100 forest scientists (to Barbara Boxer et al. from Bruce Lippke et al. July 20, 2010), expressed concern over equating biogenic carbon emissions with fossil fuel emissions, as is contemplated in the Environmental Protection Agency’s Tailoring Rule. It argued that an approach focused on smokestack emissions, independent of the feedstocks, would encourage further fossil fuel energy production, to the long-term detriment of the atmosphere. This paper attempts to clarify and, to the extent possible, resolve these differences. |
| Keywords: | carbon neutrality, biomass, wood biomass, bioenergy, carbon dioxide, feedstock, energy, alternative fuel, rational expectations |
| JEL: | Q2 Q23 Q4 Q42 Q5 |
| Date: | 2011–04–07 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-11-15&r=env |
| By: | Polborn, Sarah (Department of Economics, Aarhus School of Business) |
| Abstract: | The costs of the current suboptimal carbon abatement policy are likely in the range of 3 to 6 trillion 2005 US dollars. Using methods from the political economy of environmental policy, the paper develops a new carbon abatement policy instrument, carbon securities. A carbon security entitles its owner to a fixed proportion of ex ante unknown total emissions. This creates an additional group of stakeholders on the side of the issue that has traditionally been underrepresented. The advantages over existing systems include an equilibrium carbon price closer to the social optimum, a more predictable environmental policy, and higher investment in abatement technology |
| Keywords: | Carbon abatement; environmental policy; global warming; interest groups; lobbying; policy instrument design; political process |
| JEL: | D72 Q54 Q58 |
| Date: | 2011–09–07 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:aareco:2010_019&r=env |
| By: | Anthoff, David; Rose, Steven K.; Tol, Richard S. J.; Waldhoff, Stephanie |
| Abstract: | We use FUND 3.5 to estimate the social cost of carbon dioxide, methane, nitrous oxide, and sulphur hexafluoride emissions. We show the results of a range of sensitivity analyses, focusing on the impact of carbon dioxide fertilization. Ignored in previous studies of the social cost of greenhouse gas emissions, carbon dioxide fertilization has a positive effect at the margin, but only for carbon dioxide. Because of this, the ratio of the social cost of a greenhouse gas to that of carbon dioxide (the global damage potential) is higher - that is, previous papers underestimated the importance of reducing non-carbon dioxide greenhouse gas emissions. When leaving out carbon dioxide fertilization, our estimate of the social cost of methane is comparable to previous estimates. Our estimate of the global damage potential of methane is close to the estimates of the global warming potential because discounting roughly cancels carbon dioxide fertilization. Our estimate of the social cost of nitrous oxide is higher than previous estimates, also when omitting carbon dioxide fertilization. This is because, in FUND, vulnerability to climate change falls over time (with development) while in the long run carbon dioxide is a more potent greenhouse gas than nitrous oxide. Our estimate of the global damage potential of nitrous oxide is larger than the global warming potential because of carbon dioxide fertilization, discounting, and rising atmospheric concentrations of both gases. Our estimate of the social cost of sulphur hexafluoride is similar to the one previous estimate. Its global damage potential is higher than the global warming potential because of carbon dioxide fertilization, discounting, and rising concentrations. |
| Keywords: | Climate change/cost/Social cost of carbon |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp380&r=env |
| By: | Tol, Richard S. J. |
| Abstract: | The national version of FUND3.6 is used to infrapolate the impacts of climate change to the 20th century. Carbon dioxide fertilization of crops and reduced energy demand for heating are the main positive impacts. Climate change had a negative effect on water resources and, in most years, human health. Most countries benefitted from climate change until 1980, but after that the trend is negative for poor countries and positive for rich countries. The global average impact was positive. |
| Keywords: | Climate change/impacts/Impacts of climate change/Human health |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp376&r=env |
| By: | Tol, Richard S. J. |
| Abstract: | This paper surveys the literature on the economic impact of climate change. Different methods have been used to estimate the impact of climate change on human welfare. Studies agree that there are positive and negative impacts. In the short term, positive impacts may dominate, but these are largely sunk. In the longer term, there are net negative impacts. Poorer people tend to be more vulnerable to climate change. There is a trade-off between development policy and climate policy. Estimated aggregate impacts are not very large, but they are uncertain and incomplete. Estimates of the marginal impacts suggest that greenhouse gas emissions should be taxed, and that the emission reduction targets announced by politicians are probably too ambitious. |
| Keywords: | Climate change/Climate policy/cost/emission reduction target/impacts/Policy/Social cost of carbon |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp377&r=env |
| By: | Jorge H. García; Matthew T. Heberling; Hale W. Thurston |
| Abstract: | Many kinds of water pollution occur in pulses, e.g., agricultural and urban runoff. Ecosystems, such as wetlands, can serve to regulate these pulses and smooth pollution distributions over time. This smoothing reduces total environmental damages when the “instantaneous” damage function is convex. This paper introduces a water quality trading model between a farm (a pulse-pollution source) and a firm (a more steady pollution source) where the object of exchange is the ‘temporary’ retention of runoff as opposed to total runoff reductions. The optimal trading ratio requires firm emissions to be offset by more than a proportional retention of the initial agricultural runoff pulse. The reason is twofold: a) emissions are steady over time and -in this sense- have relatively larger environmental impact, and b) certain kinds of runoff management cause otherwise inexistent delayed environmental damages. |
| Date: | 2010–05–02 |
| URL: | http://d.repec.org/n?u=RePEc:col:000416:008292&r=env |
| By: | Roberto Revetria Lotfi A. Zadeh Alexander Zemliak, Zoran Bojkovic Janusz Kacprzyk Nikos Mastorakis Valeri Mladenov (University of Berkley, Genoa University); Covaci, Brindusa (Osterreichish-Rumanischer Akademischer Verein); George Robert Lazaroiu, Alexandru T Bogdan (Romanian Academy) |
| Abstract: | This year the 6th IASME / WSEAS International Conference on ENERGY & ENVIRONMENT (EE '11) was held in Cambridge, UK, February 23-25, 2011. The conference remains faithful to its original idea of providing a platform to discuss power generation, power plants, solar power, photovoltaic energy, fuel cells, environmental issues, electric vehicles, hybrid vehicles, transmission planning, transformers, circuit breakers, sustainable management, cleaner energy systems, energy storage, materials chemistry, electrochemistry, cogeneration systems, environmental management, biodiversity, sustainability indicators, natural resources management, feasibility analysis etc. with participants from all over the world, both from academia and from industry. |
| Keywords: | sustainable management; cleaner energy systems; energy storage; materials chemistry; electrochemistry; cogeneration systems; environmental management; biodiversity; sustainability indicators; natural resources management |
| JEL: | A10 |
| Date: | 2011–04–09 |
| URL: | http://d.repec.org/n?u=RePEc:ris:sphedp:2011_003&r=env |
| By: | Bushnell, James |
| Abstract: | Programs where firms sell emissions ``offsets'' to reduce their emissions continue to provide important complementsto traditional environmental regulations. However in many cases, particularly with current and prospective climate change policy, they continue to be very controversial. The problem of adverse selection lies at the heart of this controversy, as critics of offset programs continue to produce evidence that these projects are paying firms for actions they would have undertaken anyway, and are not producing ``additional'' reductions. This paper explores the theoretical sources of non-additional offsets. An important distinction arises between sales that indicate adverse selection and those that reveal information about aggregate emissions levels. |
| Keywords: | adverse selection; Emissions Markets; Offsets; Climate Policy |
| JEL: | G12 Q50 |
| Date: | 2011–04–06 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genres:32736&r=env |
| By: | Muhammad , Shahbaz; Faridul, Islam; Muhammad Sabihuddin , Butt |
| Abstract: | The paper explores the existence of a long run equilibrium relationship among CO2 emissions, financial development, economic growth, energy consumption, and population growth in Pakistan. ARDL bounds testing approach to cointegration is implemented to the data for 1974-2009. The results confirm a long run relation among these variables. Financial development appears to help reduce CO2 emissions. The main contributors to CO2 emissions however are: economic growth, population growth and energy consumption. Our results also lend support to the existence of Environmental Kuznets Curve for Pakistan. Based on the findings we argue that policy focus on financial development might be helpful in reducing environmental degradation. |
| Keywords: | Financial Development; CO2 Emissions; Cointegration |
| JEL: | A10 |
| Date: | 2011–02–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:30138&r=env |
| By: | Anthoff, David; Rose, Steven K.; Tol, Richard S. J.; Waldhoff, Stephanie |
| Abstract: | The social cost of carbon is an estimate of the benefit of reducing CO2 emissions by one ton today. As such it is a key input into cost-benefit analysis of climate policy and regulation. We provide a set of new estimates of the social cost of carbon from the integrated assessment model FUND 3.5 and present a regional and sectoral decomposition of our new estimate. China, Western Europe and the United States have the highest share of harmful impacts, with the precise order depending on the discount rate. The most important sectors in terms of impacts are agriculture and increased energy use for cooling. We present an extensive sensitivity analysis with respect to the discount rate, equity weights, different socio economic scenarios and values for the climate sensitivity parameter. |
| Keywords: | cost/Social cost of carbon/cost-benefit analysis/Climate policy/Policy/regulation/decomposition/europe/impacts/discount rate/energy use/equity/scenarios |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp375&r=env |
| By: | Pannell, David J.; Roberts, Anna M.; Park, Geoff; Curatolo, April; Marsh, Sally P.; Alexander, Jennifer |
| Abstract: | A framework for comprehensive integrated assessment of environmental projects is developed and applied in partnership with a regional environmental body. The framework combines theory with practice, bringing a pragmatic and efficient approach to the rigorous assessment of projects for a large number of environmental assets in the north central region of the state of Victoria, Australia. Key features of the study include extensive participation of decision makers and stakeholders, integration of a comprehensive set of information about projects, explicit assessment of uncertainties and information gaps, and analysis of the most appropriate policy mechanism for each project. The process of applying the framework involved four steps: identification of around 300 important environmental assets in the region, filtering the list of assets to remove those that are less likely to provide opportunities for costeffective public investment, development and detailed assessment of projects for a subset of assets, and negotiation of funding for projects. The analysis assisted the environmental body to make strong business cases for a number of environmental projects, resulting in funding for those projects. Implications for land-use policy include that environmental projects vary widely in their cost-effectiveness, requiring careful targeting of funds if environmental benefits are to be maximised. Many existing environmental programs use simplistic analyses to support decision making, resulting in missed opportunities for substantially greater environmental benefits. Promoting adoption of improved analytical methods is very challenging, requiring changes in mind-set and culture in environmental organisations. Widespread adoption is unlikely unless funders create incentives by rewarding those project proponents who undertake rigorous and comprehensive project assessments that focus on achievement of environmental outcomes. |
| Keywords: | Environmental Economics and Policy, Resource /Energy Economics and Policy, Q20, Q50, |
| Date: | 2011–01–11 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uwauwp:102455&r=env |
| By: | Roberts, Anna M.; Pannell, David J.; Doole, Graeme; Vigiak, Olga |
| Abstract: | A target to reduce phosphorus flows into the Gippsland Lakes in south-eastern Australia by 40 per cent to improve water quality has previously been established by stakeholders. An integrated analysis at the catchment scale is undertaken to assess the agricultural land management changes required to achieve this target, and to evaluate the cost-effectiveness of these changes. It appears technically feasible to achieve a 40 per cent reduction in P load entering the lakes, but the least-costly way of doing so would require around A$1 billion over 20 years, a dramatic increase in the current levels of funding provided for management. On the other hand, a 20 per cent P reduction could be achieved at much lower cost: around $80 million over 20 years and requiring more modest land-management changes. The choice of optimal landmanagement strategies depends upon whether on-going costs for management maintenance are likely to be available after the initial funding ceased. Reliance on voluntary adoption of âCurrent Recommended Practicesâ (CRPs) is unlikely to deliver changes in management practices at the scale required to have sufficient environmental impacts. Enforcement of existing regulations for the dairy industry would be amongst the most cost-effective management strategies. The major implications of this work for agriculturally induced diffuse-source pollution include the need for feedback between goal setting and program costs, and consideration of factors such as the levels of landholder adoption of new practices that are required, and the feasibility of achieving those adoption levels. Costs, land holder adoption of new practices and socio-political risks appear neglected in the formulation of many water quality programs. The framework used in this study provides a strong basis for discussion and debate about the environmental outcomes that can be achieved with limited budgets and also about the agricultural production and environmental tradeoffs required to reduce diffuse-source nutrient pollution. The results are relevant to comparable water-quality programs worldwide. |
| Keywords: | benefit: cost analysis, dairy, diffuse source, trade-offs, Environmental Economics and Policy, Resource /Energy Economics and Policy, Q15, Q25, Q53, Q57, |
| Date: | 2010–07–28 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uwauwp:102454&r=env |
| By: | Whiteman, G.M. |
| Abstract: | Over the last two decades, management studies on sustainability have grown considerably, including a recent surge of research on climate change. However, environmental problems have not been resolved, and most of the top management journals remain focused on the firm, not the system. This presents both a paradox and an opportunity. The year 2010 was the hottest year on record, making it the warmest decade since 1880. In certain places (like Australia and the Arctic), the impacts of climate change are already apparent. In the future, as CO2 continues to rise, we can expect more extreme events like floods, droughts, fires, and melting ice caps. This has profound implications for the way we manage and organize our societies. Before we can manage something, we have to make sense of the situation. In a complex environment, people need to pay attention to subtle cues, overcome barriers, and collectively develop ‘sensemaking’ across organizations. If people do not pay sufficient attention, they will encounter a ‘predictable surprise’ – a crisis situation that could be avoided but isn’t because of existing social and economic structures. This lecture considers how to make better sense of climate change. Professor Whiteman argues that it essential for managers and academics to take a more systemic approach and collaborate with the natural sciences and local people. She ends with management lessons for the 21st Century. |
| Keywords: | climate change;ecological sensemaking;extreme event;management lessons;sustainability |
| Date: | 2011–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:euriar:1765022952&r=env |
| By: | Calzadilla, Alvaro; Rehdanz, Katrin; Tol, Richard S. J. |
| Abstract: | Based on predicted changes in the magnitude and distribution of global precipitation, temperature and river flow under the IPCC SRES A1B and A2 scenarios, this study assesses the potential impacts of climate change and CO2 fertilization on global agriculture, and its interactions with trade liberalisation as proposed for the Doha Development Round. The analysis uses the new version of the GTAP-W model, which distinguishes between rainfed and irrigated agriculture and implements water as an explicit factor of production for irrigated agriculture. Significant reductions in agricultural tariffs lead to modest changes in regional water use. Patterns are non-linear. On the regional level water use may go up for partial liberalization, and down for more complete liberalization. This is because different crops respond differently to tariff reductions, and because trade and competition matter too. Moreover, trade liberalization tends to reduce water use in water scarce regions, and increase water use in water abundant regions, even though water markets do not exist in most countries. Considering impacts of climate change the results show that global food production, welfare and GDP fall over time while food prices increase. Larger changes are observed under the SRES A2 scenario for the medium term (2020) and under the SRES A1B scenario for the long term (2050). Combining scenarios of future climate change with trade liberalization countries are affected differently. However, the overall effect on welfare does not change much. |
| Keywords: | Climate change/competition/impacts/Impacts of climate change/scenarios |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp381&r=env |
| By: | Alassane Drabo (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I) |
| Abstract: | In the economic literature it is generally found that trade openness affects environment through various channels. While the mechanisms through which trade is associated with pollution are largely investigated theoretically and empirically, the role played by each trade component has not yet received enough attention. This paper attempts to bridge this gap by examining the consequences of agricultural primary commodity export on population's health via physical environment degradation. Using panel data from 1991 to 2009, and instrumental variables technique, the findings suggest that agricultural primary commodity export increases agricultural methane and nitrous oxide emissions as well as water pollution (biological oxygen demand). This environmental degradation from trade worsens population's health (infant and child mortality rates, and life expectancy at birth). These results are robust to different subcomponents of primary agricultural export, to African sample, and to other environmental variables considered. |
| Keywords: | primary commodity;agriculture;Trade;environment;health;instrumental variables technique |
| Date: | 2011–04–14 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00586034&r=env |
| By: | Alassane DRABO |
| Abstract: | In the economic literature it is generally found that trade openness affects environment through various channels. While the mechanisms through which trade is associated with pollution are largely investigated theoretically and empirically, the role played by each trade component has not yet received enough attention. This paper attempts to bridge this gap by examining the consequences of agricultural primary commodity export on population's health via physical environment degradation. Using panel data from 1991 to 2009, and instrumental variables technique, the findings suggest that agricultural primary commodity export increases agricultural methane and nitrous oxide emissions as well as water pollution (biological oxygen demand). This environmental degradation from trade worsens population's health (infant and child mortality rates, and life expectancy at birth). These results are robust to different subcomponents of primary agricultural export, to African sample, and to other environmental variables considered. |
| Keywords: | primary commodity, agriculture, Trade, environment, health, instrumental variables technique |
| JEL: | Q5 Q17 I1 F18 C3 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:cdi:wpaper:1253&r=env |
| By: | Bushnell, James; Mansur, Erin T.; Chong, Howard G. |
| Abstract: | We investigate the effect of cap-and-trade regulation of CO2 on firm profits by performing an event study of a CO2 price crash in the EU market. We examine returns for 90 stocks from carbon intensive industries and 600 stocks in the broad EUROSTOXX index. Firms in carbon intensive, or electricity intensive industries, but not involved in international trade were most hurt by the event. This implies investors were focused on product price impacts, rather than compliance costs. We find evidence that firms’ net allowance positions also strongly influenced the share price response to the decline in allowance prices. |
| Keywords: | Emissions Markets; Incidence of Taxation; Event Study |
| JEL: | G14 H22 H23 Q50 Q54 |
| Date: | 2010–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genres:32737&r=env |
| By: | Anthoff, David; Tol, Richard S. J. |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:rb2010/4/2&r=env |
| By: | Paul, Anthony (Resources for the Future); Palmer, Karen (Resources for the Future); Woerman, Matt (Resources for the Future) |
| Abstract: | In this paper, we introduce a new top-down approach to modeling the effects of publicly financed energy-efficiency programs on electricity consumption and carbon dioxide emissions. The approach draws on a partial-adjustment econometric model of electricity demand and represents the results of a reverse auction for electricity savings from different levels of public investment. The model is calibrated to recent estimates of the cost-effectiveness of rate payer–funded efficiency programs at reducing electricity consumption. The results suggest that supply curves for conserved electricity are upward sloping, convex, and dependent on policy design and electricity prices. Under the scenarios modeled, electricity savings of between 1 and 3 percent are achievable at a marginal cost of $50 per megawatt hour (MWh) and a corresponding average cost of $25–$35/MWh. |
| Keywords: | energy efficiency, climate change |
| JEL: | Q41 Q48 Q58 |
| Date: | 2011–04–07 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-11-11&r=env |
| By: | Alassane Drabo (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I) |
| Abstract: | This paper examines the link between health inequalities, air pollution and political institutions. In health economics literature, many studies have assessed the association between environmental degradation and health outcomes. This paper extends this literature by investigating how air pollution could explain health inequalities both between and within developing countries, and the role of political institutions in this relationship. Theoretically, we argue that differential in exposition to air pollution among income classes, prevention ability against health effect of environment degradation, capacity to respond to disease caused by pollutants and susceptibility of some groups to air pollution effect are sufficient to expect a positive link between air pollution and income related health inequality. Furthermore, in democratic countries, this heterogeneity in the health effect of pollution may be mitigated since good institutions favour universal health policy issues, information and advices about hygiene and health practices, and health infrastructures building. Our econometric results show that sulphur dioxide emission (SO2) and particulate matter (PM10) are in part responsible for the large disparities in infant and child mortalities between and within developing countries. In addition, we found that democratic institutions play the role of social protection by mitigating this effect for the poorest income classes and reducing the health inequality it provokes. |
| Keywords: | health inequality;air pollution;political institutions;social protection |
| Date: | 2011–04–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00584997&r=env |
| By: | Geoffrey Heal; Howard Kunreuther |
| Abstract: | Thinking about tipping provides a novel perspective on finding a way forward in climate negotiations and suggests an alternative to the current framework of negotiating a global agreement on reductions in greenhouse gas emissions. Recent work on non-cooperative games shows games with increasing differences have multiple equilibria and have a “tipping set,” a subset of agents who by changing from the inefficient to the efficient equilibrium can induce all others to do the same. We argue that international climate negotiations may form such a game and so have a tipping set. This set is a small group of countries who by adopting climate control measures can make in the interests of all others to do likewise. |
| JEL: | C72 F53 Q56 |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:16954&r=env |
| By: | Stefan Borsky; Paul A. Raschky |
| Abstract: | This paper provides an empirical analysis of the role of intergovernmental relations on a country's effort to enforce the objectives of an international environmental agreement on an open access resource. Intergovernmental interaction allows signatory countries to observe compliance behavior of other signees and to punish non-compliance by applying bi- and multilateral sanctions. We use a cross-sectional dataset that contains country level information about compliance with the 1995 UN Code of Conduct for Responsible Fisheries. Our identication strategy combines a spatial autoregressive model with spatial autoregressive disturbances and an instrumental variable approach. We find a strong positive effect of other countries' compliance on the individual country's compliance score. These results suggest that repeated interactions among participants might not only play a role in enforcing the obligations of an agreement at the community level but also have an impact at the international level. |
| Keywords: | International environmental agreements; open access resources; spatial econometrics |
| JEL: | C21 F53 Q22 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:inn:wpaper:2011-10&r=env |
| By: | R. Quentin Grafton; Clay Landry; Gary D. Libecap; Sam McGlennon; Bob O’Brien |
| Abstract: | The paper provides an integrated framework to assess water markets in terms of their institutional underpinnings and the three ‘pillars’ of integrated water resource management: economic efficiency, equity and environmental sustainability. This framework can be used: (1) to benchmark different water markets; (2) to track performance over time; and (3) to identify ways in which water markets might be adjusted by informed policy makers to achieve desired goals. The framework is used to identify strengths and limitations of water markets in: (1) Australia’s Murray-Darling Basin; (2) Chile (in particular the Limarí Valley); (3) China (in particular, the North); (4) South Africa; and (5) the western United States. It identifies what water markets are currently able to contribute to integrated water resource management, what criteria underpin these markets, and which components of their performance may require further development. |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:icr:wpicer:32-2010&r=env |
| By: | Nicolas Jacquemet (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris); Alexander James (Departement of Economics and Finance, University of Wyoming - University of Wyoming); Stephane Luchini (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - Université de la Méditerranée - Aix-Marseille II - Université Paul Cézanne - Aix-Marseille III - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - CNRS : UMR6579); Jason Shogren (Departement of Economics and Finance, University of Wyoming - University of Wyoming) |
| Abstract: | The field of social psychology explores how a person behaves within the context of other people. The social context can play a substantive role in non-market allocation decisions given peoples choices and values extend beyond the classic market-based exchange institution. Herein we explore how social psychology has affected one aspect of environmental economics: preference elicitation through survey work. We discuss social representation, social isolation, framing through cheap talk, and commitment theory through an oath. |
| Keywords: | Social psychology, Commitment, Persuasive communication, Preference elicitation |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-00584247&r=env |
| By: | James Alm (Department of Economics, Tulane University); H. Spencer Banzhaf (Department of Economics, Andrew Young School of Policy Studies, Georgia State University) |
| Abstract: | When external effects are important, markets will be inefficient, and economists have considered several broad classes of economic instruments to correct these inefficiencies. However, the standard economic analysis has tended to take the region, and the government, as a given; that is, this work has neglected important distinctions and interactions between the geographic scope of different pollutants, the enforcement authority of various levels of government, and the fiscal responsibilities of the various levels of government. It typically ignores the possibility that the externality may be created and addressed by local governments, and it does not consider the implications of decentralization for the design of economic instruments targeted at environmental problems. This paper examines the implications of decentralization for the design of corrective policies; that is, how does one design economic instruments in a decentralized fiscal system in which externalities exist at the local level and in which subnational governments have the power to provide local public services and to choose tax instruments that can both finance these expenditures and correct the market failures of externalities? |
| Keywords: | market failure, environmental federalism, externalities, fiscal decentralization, subsidiarity principle, economic instruments |
| JEL: | H2 H4 H7 Q5 |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:tul:wpaper:1104&r=env |
| By: | Andrés J. Picazo-Tadeo (Departamento de Economía Aplicada II. Universidad de Valencia); Mercedes Beltrán-Esteve (Departamento de Economía Aplicada II. Universidad de Valencia); José A. Gómez-Limón (Departamento de Economía Agraria. Instituto Andaluz de Investigación y Formación Agraria y Pesquera. Córdoba.) |
| Abstract: | Eco-efficiency is a matter of concern at present that is receiving increasing attention in political, academic and business circles. Broadly speaking, this concept refers to the ability to create more goods and services with less impact on the environment and less consumption of natural resources, thus involving both economic and ecological issues. In this paper we propose the use of directional distance functions and Data Envelopment Analysis techniques to assess eco-efficiency. More specifically, we show how these functions can be used to compute a range of indicators representing different objectives of policymakers and/or firm managers regarding economic and ecological performance. Our methodological approach is illustrated by an empirical application to a sample of olive-growing farmers located in Southern Spain. Our foremost finding is that eco-inefficiency is a widespread managerial practice. We also suggest further avenues to explore in this burgeoning line of research. |
| Keywords: | Data Envelopment Analysis; eco-efficiency assessment; directional distance functions |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:eec:wpaper:1110&r=env |
| By: | Hazuki Ishida (Faculty of Symbiotic Systems Science, Fukushima University) |
| Abstract: | Fossil fuels (oil, coal, gas) are low-entropy natural resources which seem to be indispensable for our economic prosperity. This paper investigates the relationship between fossil fuel consumption and economic growth in Japan, using a multivariate model of fossil fuels, non-fossil energy, labor and GDP. Using the Johansen cointegration technique, the empirical results indicate that there is a long-run relationship among the variables. Then using vector error correction model, the study reveals unidirectional causality running from fossil fuels to GDP. It implies that decline in fossil fuel consumption may hamper economic growth. On the other hand, non-fossil energy use does not appear to have positive effects on economic growth. |
| Keywords: | Fossil fuels, Economic growth, Cointegration, Granger causality |
| JEL: | Q32 Q43 Q57 |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:osk:wpaper:1113&r=env |
| By: | Urs Steiner Brandt (Department of Environmental and Business Economics, University of Southern Denmark); Niels Vestergaard (Department of Environmental and Business Economics, University of Southern Denmark) |
| Abstract: | This paper deals with risk and uncertainties that are an inherent part of design-ing and implementing fisheries rebuilding plans. Such risk and uncertainties stem from a variety of sources, biological, economic and/or political factors, and are influenced by external factors like changing environmental conditions. The aim of this paper is to characterize such risks and uncertainties and to as-sess the importance of it in relation to the performance of fisheries rebuilding plans, to give some examples where uncertainties have negatively affected the ability of rebuilding plans to reach their intended targets and to give some guidelines how to deal with risk and uncertainties. The conclusion is that when designing fisheries rebuilding plans, it should be taken into account the availability of relevant information, such that progress is (indisputable) measurable, and causes of potential failure can be clarified. Rebuilding plans need to consider biological, economic and distributional consequences in order to reduce uncertainties and to ensure successful implementation of the plan. Risk communication is also valuable in the process, since it gives transparency of the objectives and means to meet these objectives, elucidates crucial information from stakeholders and legitimates the whole process of designing and implementing the rebuilding plans, which is essential for the success of these plans. To that end the plans should be as simple and realistic as possible. It is recommended to apply risk analysis and to use the precautionary principle only in cases where large uncertainties exists and/or potentially high costs exits of ignoring the uncertainty cannot be resolved. Two fisheries rebuilding plans are analysed and how they address risk and uncertainties are evaluated. This study was done under contract with the OECD. The authors are grateful to Gunnar Haraldsson and Saba Khwaja for comments and advise. |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:sdk:wpaper:107&r=env |