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on Environmental Economics |
| By: | Elettra Agliardi (RCEA; University of Bologna); Mehmet Pinar (Fondazione Eni Enrico Mattei; University of Guelph); Thanasis Stengos (University of Guelph; RCEA) |
| Abstract: | An optimal weighting scheme is proposed to construct a new index of environmental quality for different countries using an approach that relies on consistent tests for stochastic dominance efficiency. The test statistics and the estimators are computed using mixed integer programming methods. The variables that are considered include countries’ greenhouse emissions, water pollution and forest benefits, as from the dataset of the World Bank. First, the stochastic efficient weighting for each set of variables is calculated to build three sub-indices (for greenhouse emissions, water pollution and land without forests) and then an overall risk index of environmental quality is constructed. One main result is that land without forest contributes the most (with around 70%), greenhouse emissions contribute with around 20% and water pollution contributes less (with around 10%). Finally, countries are ranked according to their index of environmental quality and their rankings are compared with those of the Kyoto Protocol. |
| Keywords: | Environmental Quality; Emissions; Water Pollution; Nonparametric Stochastic Dominance, Mixed Integer Programming |
| JEL: | C4 C5 C14 Q01 Q5 Q51 |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:rim:rimwps:31_11&r=env |
| By: | Peter Holmes (Department of Economics, University of Sussex); Tom Reilly; Jim Rollo (Politics and Contemporary European Studies, University of Sussex) |
| Abstract: | Balancing legitimate fears that carbon leakage could undermine the impact of any global climate change agreement are countervailing fears that leakage will be the excuse for protectionism in the guise of “Border Carbon Adjustments”. This would have dangers for the world trading system, risking disputes due to ambiguities in the details of WTO rules over what types of border measures are potentially and actually admissible. Even with good quality data, there is considerable potential for judgemental discretion, and hence opportunistic manipulation, in estimating the carbon charges to levy on an imported product. This is even with agreement on whether to use importer or exporter coefficients. A clear distinction needs to be made between environmental and competitiveness motives for border adjustments. The key argument is that the traditional symmetry between origin based taxes (production) and other charges and those based on the destination (consumption) principle breaks down in the case of carbon charges. This paper explores the potential for regional agreements to ensure origin as the basis for carbon levies in the aftermath of the Copenhagen Accord, while recognising the challenges that this poses for the mutual recognition of emissions regimes in particular. |
| Keywords: | Competitiveness, carbon leakage, cap-and-trade (C&T), trade policy, WTO and regionalism. |
| JEL: | F18 |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susewp:0610&r=env |
| By: | David de la Croix (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES) and Center for Operations Research and Econometrics (CORE)); Axel Gosseries (FNRS (Belgium) and UNIVERSITE CATHOLIQUE DE LOUVAIN, Hoover Chair) |
| Abstract: | For a given technology, two ways are available to achieve low polluting emissions: reducing production per capita or reducing population size. This paper insists on the tension between the former and the latter. Controlling pollution either through Pigovian taxes or through tradable quotas schemes encourages agents to shift away from production to tax free activities such as procreation and leisure. This natalist bias will deteriorate the environment further, entailing the need to impose ever more stringent pollution rights per person. However, this will in turn gradually impoverish the successive generations: population will tend to increase further and production per capita to decrease as the generations pass. One possible solution consists in capping population too. |
| Keywords: | Overlapping generations, Environmental Policy, Endogenous Fertility, Quantity - Quality Tradeoff, Population Control |
| JEL: | Q58 Q56 J13 O41 |
| Date: | 2011–05–31 |
| URL: | http://d.repec.org/n?u=RePEc:ctl:louvir:2011020&r=env |
| By: | Michielsen, T.O. (Tilburg University, Center for Economic Research) |
| Abstract: | Imperfect climate policies may be ineffective when fossil fuel owners respond by shifting their supply spatially (coined carbon leakage) or intertemporally (the green paradox). Though these effects are usually analyzed separately, the underlying mechanisms are similar. Exhaustibleffossil fuel owners must trade off present and future extraction or supplying one country and the other. Whereas this is a plausible representation for oil and natural gas, important emission-intensive substitutes such as coal and uncoventional oil are so abundant that their owners face no such trade-off. A decrease in coal demand in one time period or region will therefore not trigger an equal increase in supply in the other. Moreover, if imperfect climate policies causes oil and natural gas owners to supply more in the near future or in countries with lax regulation, demand for dirtier substitutes will go down. Both effects mitigate intertemporal and spatial carbon leakage. When the substitutability between oil and coal differs across time periods or countries, a 'strong green orthodox' may occur. |
| Keywords: | green paradox;exhaustible resource;backstop;climate change;carbon tax |
| JEL: | Q31 Q54 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:kubcen:2011076&r=env |
| By: | Sayedeh Parastoo Saeidi; Saudah Sofian; Parvaneh Saeidi (Faculty of Management and Human Resource Development University Technology Malaysia) |
| Abstract: | Increasing awareness and concerns of environmental problems has led organizations to confront with environmental issues in their path process to better firm performance. This paper aims to have a comprehensive review on the relationship between environmental management accounting and firm performance and also explores the role of innovation and competitive advantage as two effective mediator variables in this relationship. This study presents a comprehensive picture of this path process which has previously been partially discussed in the literatures. Finally, this paper suggests a framework for future research on how EMA lead to firm performance through innovation and competitive advantage |
| Keywords: | Environmental Management Accounting, Firm performance, Innovation, Competitive advantage |
| JEL: | M00 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:cms:1icm11:2011-051_143&r=env |
| By: | Kamarudin Abu Bakar; Ismi Rajiani (Faculty of Technology Management & Technopreneurship, Universiti Teknikal Malaysia Melaka); Md Razali Ayob (Faculty of Mechanical Engineering, Universiti Teknikal Malaysia Melaka); Noor Shawal Nasri (Faculty of Chemical & Natural Resources Engineering, Universiti Teknologi Malaysia) |
| Abstract: | A-F-F-I-R-M is the holistic approach taken by the Malaysian government in completing an ecosystem for environmental sustainability. It expresses the commitment of all stakeholders toward sustainable development in Malaysia. Thus, it is necessary to complete the ecosystem into one that achieves satisfactory levels of environmental sustainability. Hence, this research intends to explore the suitability adoption of A-F-F-I-R-M within the Foresight Model of the environmental-socio-economic dimension of Malaysian, in which the outcome of the research is important as it can determine whether we (the “actors”) would all be able to work together to foster green technology as well as extending this call to the world largely and collectively, changing the landscape of the earth for the betterment of future generations. For this reason, the Author(s) has proposed a refine research framework for more effective study of the issue |
| Keywords: | Ecosystem, Sustainable Development, Environmental-Socio-Economic, Green Technology, Actors |
| JEL: | M00 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:cms:1icm11:2011-040_341&r=env |
| By: | Alberto Quadrio Curzio; Fausta Pellizzari; Roberto Zoboli |
| Abstract: | This Working Paper joint two previous articles by the authors: The economic theory of exhaustible natural resources, in “Enciclopedia degli Idrocarburi”, vol. IV, Istituto della Enciclopedia Treccani, Roma, 2008, pp. 3-10;Technological innovation, relative scarcity, investments, in “Enciclopedia degli Idrocarburi”, vol. IV, Istituto della Enciclopedia Treccani, 2008, pp. 11-22. In the first one (cap. 1-4), we consider the contribution of economic theory (partly through a reevaluation of history) in order both to interpret and predict events, and to identify economic policies; this happens especially when the world economy feels the significant constraints imposed by some natural resources and raw materials, partly due to the rapid growth of a number of developing countries, and when there is an urgent need to increase resources rapidly to ensure continuing availability. Even if the problem of scarce resources (of which natural resources are the most obvious category) has been central to analysis for centuries, natural resource economics is contradictory. The main reason for this is that economic theory is out of step with prevailing economic conditions, as a consequence of the varying concern for a crucial phenomenon in the dynamics of economic systems: the opposition-coexistence of the scarcity of natural resources and the producibility of commodities. Natural resource economics can be summarized by dividing it into three main lines of thought: the theory of producibility and scarcity developed by classical economists; the theory of general and natural scarcities developed by marginalists and neoclassicals; the theory of dynamics with and without natural scarcities developed by macroeconomists, structuralists and empirical stylizers. Using this three-way subdivision, which is not clearly codified in economic theory, the basic features of each approach will be examined with special attention to its early exponents. The historical starting point is the second half of the Eighteenth century, although we will ignore contributions such as those made by the Physiocrats who, during the same period, developed a theory of production based on the surplus generated by agriculture. In the second one (cap. 5-6), we consider that the role of technological innovation for resources use and conservation is often measured by empirical indicators of intensity or efficiency which express the evolution of resource use in relation to variables such as population and GDP. The historical evolution of these indicators tends to indicate a process of decoupling – in other words, a decrease in the energy/emissions intensity of economic activity or an increase in the efficiency/productivity of resource use. These empirical regularities have led to the proposition of stylized facts representing the relationships between resource-use efficiency and economic growth known as environmental Kuznets curves. However, the economic interpretations of the innovation mechanisms underlying the progress suggested by efficiency indicators, nonetheless, remain open and complex at the very time when there is increasing demand for further substantial advances in resource-use efficiency. We will survey the empirical evidence on the medium- and long-term dynamics of these indicators and will discuss their significance. This will be followed by an analysis of the possible role played by economic factors (especially resource prices and markets) and institutional factors (especially climate policy) in triggering and supporting progress in the use efficiency of energy resources. |
| Keywords: | natural resources; technological innovation; relative scarcity; investments |
| JEL: | N50 O30 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:crn:wpaper:crn1101&r=env |
| By: | Costa, Cinthia Cabral da; Cunha, Marcelo Pereira da; Guilhoto, Joaquim José Martins |
| Abstract: | Sustainable energy strategies require decision-makers in government, industry, academia and civil society alike to make choices among tradeoffs. Within the transport sector alone, ethanol has been shown to be the dominant solution among viable, low carbon options to date, yet questions remain over the economic and ecological impacts of this industry. In Brazil - the largest producer of sugarcane-based ethanol and a country with over three decades of ethanol development – we find a strong basis for evaluating the ethanol industry’s role in a national economy. In the mid 1970’s, Brazilian ethanol production received an important boost with the launch of the “Proálcool” program. The ethanol industry has subsequently evidenced flux until its consolidation in the period following 2000. Over the course of three decades, economic, institutional, technological and environmental determinants have factored in the success of Brazilian ethanol diffusion. In economic terms, price tradeoffs for ethanol vs. sugar and ethanol vs. gasoline played a role in scale-up of the biofuel together with balance of payment considerations. From an institutional standpoint, support for the Proálcool program, deregulation of the sugar-cane sector in the 1990’s and fuel pump adaptations also factored. With respect to technology, the development of flex fuel cars, greater use of mechanized harvesting, and launch of domestic, co-generated, electrical power were key drivers. Finally, in environmental terms, challenges associated with pollution and public health in major cities as well as questions related to climate change gained visibility. In this paper, we analyze a set of input-output tables for the Brazilian economy from 1975 to 2006, taking the above factors into consideration. Deriving a series of indicators, such as multipliers and linkages, we study the evolution of the ethanol sector’s role in the Brazilian economy and its relation to the productive structure of the country |
| Keywords: | Brazil; Ethanol; Input-Output; Productive Structure |
| JEL: | R15 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:32224&r=env |
| By: | Nelly Exbrayat (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Carl Gaigne (INRA Rennes - INRA Rennes - INRA : RENNE); Stéphane Riou (GATE LSE - GATE LSE - Université Sainte Etienne) |
| Abstract: | Nous analysons l'impact et les déterminants d'une taxe carbone globale dans une économie imparfaitement intégrée composée de pays de différente taille. A l'aide d'un modèle de commerce et de localisation, nous montrons tout d'abord que la concentration de firmes dans le pays disposant d'un avantage de taille de marché accroît les émissions totales de CO2. L'intro- duction d'une taxe carbone globale conduit alors à des délocalisations de fi rmes du grand pays vers le petit pays de sorte que même fixée à un taux unique, une fiscalité carbone ne serait pas neutre du point de vue de la géographie économique. Enfin, parce qu'elles conduisent à une réduction des émissions mondiales de CO2, ces relocalisations améliorent l'efficacité environnementale de la taxe carbone. |
| Keywords: | Taxe carbone globale;economie geographique |
| Date: | 2011–07–04 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00605831&r=env |
| By: | C. Ordás Criado (ETH Zurich, Center for Energy Policy and Economics (CEPE), Switzerland; Université Laval, Département d’économique, Canada); S. Valente (ETH Zurich, Center of Economic Research (CER), Switzerland); T. Stengos (University of Guelph, Department of Economics, Canada) |
| Abstract: | Stabilizing pollution levels in the long run is a pre-requisite for sustainable growth. We develop a neoclassical growth model with endogenous emission reduction predicting that, along optimal sustainable paths, pollution growth rates are (i) positively related to output growth (scale effect) and (ii) negatively related to emission levels (defensive effect). This dynamic law reduces to a convergence equation that is empirically tested for two major and regulated air pollutants - sulfur oxides and nitrogen oxides - with a panel of 25 European countries spanning the years 1980-2005. Traditional parametric models are rejected by the data. More flexible regression techniques confirm the existence of both the scale and the defensive effect, supporting the model predictions. |
| Keywords: | Air pollution, convergence, economic growth, nonparametric regressions |
| JEL: | C14 C23 O13 Q53 |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:rim:rimwps:33_11&r=env |
| By: | Alexandre Sauquet (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I) |
| Abstract: | Do countries interact when they decide to ratify the Kyoto protocol? What is the nature of these possible interactions? To answer these questions we provide a theoretical analysis based on the notions of strategic substitutability and strategic complementarity. Firstly, we analyze the nature of interactions between countries when they merely seek to provide a global public good (avoiding climate change). Secondly, we argue that countries are interlinked in several dimensions in the real world and we try to shed light on the nature of strategic interactions generated by geographic proximity, trade flows and green investment flows. The empirical investigation is realized via the introduction of spatially lagged endogenous variables in a parametric survival model and our data sample covers the period from 1998 to 2009 for 164 countries. We find evidence that the decisions of neighbors and of green investors matter. Furthermore, our results indicate that the influence of the decision of trading partners is even more substantial. |
| Keywords: | International Environmental Agreements;Kyoto Protocol Ratification;Strategic Substitutes/complements;Survival model;Spatial lag |
| Date: | 2011–07–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00607785&r=env |
| By: | Alexandre SAUQUET |
| Abstract: | Do countries interact when they decide to ratify the Kyoto protocol? What is the nature of these possible interactions? To answer these questions we provide a theoretical analysis based on the notions of strategic substitutability and strategic complementarity. Firstly, we analyze the nature of interactions between countries when they merely seek to provide a global public good (avoiding climate change). Secondly, we argue that countries are interlinked in several dimensions in the real world and we try to shed light on the nature of strategic interactions generated by geographic proximity, trade flows and green investment flows. The empirical investigation is realized via the introduction of spatially lagged endogenous variables in a parametric survival model and our data sample covers the period from 1998 to 2009 for 164 countries. We find evidence that the decisions of neighbors and of green investors matter. Furthermore, our results indicate that the influence of the decision of trading partners is even more substantial. |
| Keywords: | International Environmental Agreements, Kyoto Protocol Ratification, Strategic Substitutes/complements, Survival model, Spatial lag |
| JEL: | Q56 Q53 H41 F C41 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:cdi:wpaper:1275&r=env |
| By: | Theofilaktou, Vera |
| Abstract: | Transparency is considered as a fundamental principle that can be found in administrative law across all European countries and is a part of the acquis communautaire. It is one of these principles that allow us to speak about convergence amongst national administrations, emergence of a Europe-wide system of administrative procedures and justice and consequently the shaping of a "European Administrative Space" |
| Keywords: | environmental information; transparency |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:nsu:apasro:293&r=env |
| By: | Viscusi, W. Kip (Vanderbilt University); Zeckhauser, Richard J. (Harvard University) |
| Abstract: | The BP Deepwater Horizon oil spill highlighted the glaring weakness in the current liability and regulatory regime for oil spills and for environmental catastrophes more broadly. This article proposes a new liability structure for deep sea oil drilling and for catastrophic risks generally. It delineates a two-tier system of liability. The first tier would impose strict liability up to the firm's financial resources plus insurance coverage. The second tier would be an annual tax equal to the expected costs in the coming year beyond this damages amount. A single firm will be identified as responsible for generating the risk. It would be required to demonstrate substantial ability to pay in the first tier before being permitted to engage in the risky activity. This structure provides for efficient deterrence for environmental catastrophes, since the responsible party is bearing in expectation the risks it is imposing. It also addresses the challenges posed by the fat-tailed distributions of catastrophic environmental risks and provides for more assured and adequate compensation of potential losses than current liability and regulatory arrangements. |
| JEL: | G22 K32 Q30 Q40 |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:harjfk:rwp11-025&r=env |
| By: | Mana Khoshkam; Farideh Asadian; Mohammad Salmani Moghadam (Islamic Azad University of Tehran, Iran); Banafsheh M. Farahani (Universiti Sains Malaysia) |
| Abstract: | In recent years, tourism industry as a new approach for human coexistence, as well as economic productivity has a significant role in the development theme. It is confirmed that environmental strength is one of the main factors for attracting tourists in order to visit a destination. In this matter Eco-tourism has turned out to be one of the alternatives for countries like Iran with wealthy nature. Iran by its unique nature with 1,648,195 km2 area is surrounded by Caspian Sea in the North, Persian Gulf and Oman Sea in the South. It is also contain desert in central area as well as mountain in the North and North-west. Wetlands are the other natural attraction which quite a number of them are located in different parts of this country. Chaghakhor wetland in Chahar Mahal and Bakhtiari province consider as one of them. This paper attempts to review and evaluate the influence of locals’ condition including living condition and economical condition on tourists destination visit. A quantitative method was applied by distributing self administrated questionnaire to tourists visiting the area as well as key holders in the mentioned region. The respondents were asked about the influence of locals’ living condition as well as locals’ economical condition e.g. their occupation, income, and welfare on tourists decision to visit the place. Accordingly, the results of statistical analysis shows that there is not positive relationship between the locals’ living condition and tourists decision making, and it is just tourist attraction which influence their decision to visit the place. The investigation was determined that an individual economical and living condition is one of the most important factors of attracting national and international tourists to visit the destination |
| Keywords: | Chaghakhor, Wetland, Eco-tourism, Living Condition |
| JEL: | M00 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:cms:1icm11:2011-046_079&r=env |
| By: | Germà Bel (Faculty of Economics, University of Barcelona); Xavier Fageda (Faculty of Economics, University of Barcelona); Melania Mur (University of Zaragoza) |
| Abstract: | This paper analyzes the cost implications of privatization and cooperation in the provision of solid waste services for a sample of small municipalities. In conducting this empirical analysis, a survey is first designed and administered to municipalities in the Spanish region of Aragon, and then an estimation of the determinants of service costs is undertaken, considering the possible endogeneity of delivery choices. Our findings indicate that cooperation is more effective than privatization in saving costs. Both production forms can enable small municipalities to cut costs by exploiting scale economies. However, the fact that inter-municipal cooperation involves lower transaction costs and is less likely to be affected by competition problems would seem to account for the fact that it is a more effective way of reducing costs. |
| Keywords: | Privatization, cooperation, costs, solid waste. JEL classification:L33, R51, H72. |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:ira:wpaper:201111&r=env |
| By: | Rode, Sanjay |
| Abstract: | The solid waste is increasing in Pune city due to growth of population, urbanization, higher per capita income and standard of living, changing lifestyle and food habits. The solid waste created by the household units, shops, restaurant and commercial units are higher. Solid waste is inevitable task in urbanization process and it will increase in future. The collection, segregation, storage, transports and processing of solid waste needs planning and more investment. Clean city improves standard of living by reducing different diseases. Public private partnership is more useful in solid waste management. Government and Municipal Corporation must encourage local management through collection, transport and segregation and disposal of solid waste. Public awareness and segregation at source, rules and regulations related to solid waste will bring good change in solid waste management. |
| Keywords: | Urbanization; management; lifestyle |
| JEL: | Q5 Q53 |
| Date: | 2010–12–28 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:32137&r=env |
| By: | Hana Alioui (USTV - Université du Sud-Toulon-Var - UFR Sciences économiques et de gestion - Université du Sud - Toulon - Var) |
| Abstract: | L'application des projets de mécanisme de développement propre crée des avantages et des inconvénients sur les pays en voie de développement. Dans ce cadre, les pays émergents vont bénéficier d'un impact positif de ces projets de MDP qui entraînent un transfert de technologies, hausse des revenus, création d'emplois, baisse de la pauvreté,... alors que les pays les plus pauvres (Afrique) vont bénéficier d'un impact négatif à cause d'une part faible des projets de MDP sur ce continent. |
| Keywords: | PMD, projets de mécanisme de développement, pays émergents, pays les plus pauvres, transfert de technologies, pauvreté, revenus, emploi, Afrique |
| Date: | 2011–06–14 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:dumas-00606078&r=env |
| By: | Mireille Chiroleu-Assouline (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) |
| Abstract: | Que l'économiste envisage les interactions entre le système productif et l'environnement naturel en termes d'externalités ou de bien public, il constate la défaillance du marché à les réguler et la nécessité de l'intervention de l'Etat. Parmi les instruments de régulation disponibles, la fiscalité est le plus efficace économiquement et le plus incitatif à l'innovation. La redistribution du rendement fiscal peut également permettre de rechercher un double dividende et de corriger les inéquités éventuellement engendrées par la régulation. |
| Keywords: | fiscalité environnementale ; externalité ; bien public ; double dividende |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-00607596&r=env |