|
on Environmental Economics |
| By: | Balázs Égert |
| Abstract: | The authorities have a very ambitious environmental-policy agenda, aimed chiefly at cutting greenhouse gas (GHG) emissions but also at dealing with local air and water pollution, waste management and the conservation of biodiversity. The laws that followed the Grenelle de l?environnement encompass policy measures in energy generation, manufacturing, transport, waste management, construction and agriculture to encourage a transition towards a low-carbon economy. The government is committed to an ambitious GHG reduction objective of 75% to be achieved by 2050. This paper evaluates its policies in terms of cost effectiveness, with a special emphasis on: how to impose a unique carbon price in the aftermath of the rejection of the carbon tax by the Constitutional Council; the challenges relating to renewable and nuclear electricity generation; the ways to reduce carbon intensity in the residential and transport sectors; how to improve waste management; and whether external costs related to the use of fertilisers and pesticides are properly accounted for in water management. Whereas considerable progress has been made to “green” the economy, an important challenge that remains is to internalise global and local externalities in all sectors of the economy so as to increase the cost-effectiveness of environmental policies. |
| Keywords: | global warming, GHG emissions, environmental policies, carbon price, abatement cost, renewables, nuclear power, negative externalities, water pollution, waste management |
| JEL: | H23 Q41 Q42 Q48 Q52 Q53 Q54 Q58 |
| Date: | 2011–04–22 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:859-en&r=env |
| By: | Evdokia Moïsé; Ronald Steenblik |
| Abstract: | This paper provides an overview of existing measures relating to non-product-related processes and production methods (PPMs) adopted in the context of climate-change-mitigation policies, especially those linked to the life-cycle greenhouse-gas (GHG) emissions of particular products. Such domestic PPM-related requirements and schemes are important policy tools for promoting sustainable development and are aimed at addressing GHG emissions resulting from the activities involved in producing, processing and transporting the product to the final consumer. Their ostensive purpose is to promote better environmental outcomes and to ensure that domestic climate-change policies and incentives do not inadvertently undermine other environmental objectives. Even though the general objectives of the reviewed regulations and private schemes are comparable (e.g. the promotion of renewable-energy sources, or provision of information on the carbon footprint of goods), the approaches, level of detail, choices of instruments and targeted environmental characteristics vary considerably from country to country and from scheme to scheme. Some regulations rely more or less extensively on market mechanisms, attaching price premiums to certain types of products. Others introduce command-and-control provisions limiting the use of certain PPMs, variously defined in different countries. Still others target certain types of fuels eligible for public support, with varying eligibility criteria. Private schemes mainly use environmental sustainability claims to secure consumer preference. The choice of different instruments presumably entails different trade impacts. However, all of the reviewed measures and schemes are fairly new, and experience with their application and therefore their potential trade effects has so far been relatively limited. |
| Keywords: | trade policy, trade and environment, environmental provisions, processes and production methods |
| JEL: | F13 F18 N50 Q56 |
| Date: | 2011–08–03 |
| URL: | http://d.repec.org/n?u=RePEc:oec:traaaa:2011/4-en&r=env |
| By: | Lundgren, Tommy (CERE); Marklund, Per-Olov (CERE) |
| Abstract: | Using a growth model that accounts for environmental and climate externalities, we take a closer look at the welfare e¤ects of promoting biomass growth and the use of bioenergy. As an illustration, a forest hypothetical intensive forest cultivation project is simulated. Costs and benefi…ts of the project show that we need not only determine the postive effects of promoting biomass growth and the use of bioenergy, such as substitution away from fossil fuels and carbon sequestration. But more importantly, to achieve a balanced measure of the e¤ects on the climate, we must also incorporate all carbon emissions that is associated with bioenergy. Not doing so will overestimate the positive climate e¤ects of increasing the use of bioenergy. |
| Keywords: | Bioenergy |
| JEL: | Q23 Q42 |
| Date: | 2011–08–22 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:slucer:2011_011&r=env |
| By: | Anbumozhi, Venkatachalam (Asian Development Bank Institute); Chotichanathawewong, Qwanruedee (Asian Development Bank Institute); Murugesh, Thirumalainambi (Asian Development Bank Institute) |
| Abstract: | Environmental information disclosure strategies, which involve corporate attempts to increase the availability of information on pollution and emissions, can become a basis for a new wave of environmental protection policy that follows and has the potential to complement traditional command and control and market-based approaches. Although a growing body of literature and operational programs suggest that publicly disclosing the information can motivate improved corporate environmental performance, this phenomenon remains poorly understood. This paper reviews the economic and legitimacy theory behind information disclosure and analyses the current practice and programs adopted in industrialized and industrializing countries. |
| Keywords: | environmental information disclosure; toxic release inventory; government disclosure programs; materials accounting; sector facility indexing; pollution and emissions; environmental performance |
| JEL: | Q52 Q53 Q57 Q58 |
| Date: | 2011–08–22 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:0305&r=env |
| By: | Stéphanie Jamet |
| Abstract: | Sweden has developed an extensive and sound policy framework to limit greenhouse gas emissions. It is now one of the OECD countries with the lowest greenhouse gas emissions per capita and it has successfully managed to decouple GDP growth from emissions growth. However, as Sweden has already significantly lowered its greenhouse gas emissions, the cost of reducing them further could be very high, making it urgent to improve the cost-effectiveness of Sweden’s climate change policies. A strategy to enhance the cost-effectiveness of this policy framework would include: i) reducing differences in carbon prices between sectors and increasing even further the role of market-based instruments; ii) limiting overlap between targets and policies; iii) raising Sweden’s participation in greenhouse gas emission reductions abroad; and iv) improving the assessments of the policy framework. This Working Paper relates to the 2011 OECD Economic Survey of Sweden (www.oecd.org/eco/surveys/Sweden).<P>Améliorer le rapport coût-efficacité des politiques d'atténuation du changement climatique en Suède<BR>La Suède s’est dotée d’un cadre d’action solide et très complet pour limiter ses émissions de gaz à effet de serre. Elle figure aujourd’hui parmi les pays de l’OCDE qui affichent les plus faibles taux d’émission de gaz à effet de serre par habitant et a réussi à découpler la croissance de son PIB de celle de ses émissions. Toutefois, sachant que les émissions de gaz à effet de serre ont déjà été sensiblement réduites, le coût de nouvelles réductions pourrait s’avérer très élevé, d’où la nécessité d’améliorer d’urgence le rapport coût-efficacité des politiques de la Suède en matière de changement climatique. La stratégie envisagée pour améliorer l’efficacité-coût du cadre d’action pourrait consister à : i) réduire les différentiels de prix du carbone entre dans les différents secteurs et faire jouer encore davantage les instruments de marché ; ii) limiter les chevauchements entre objectifs et mesures ; iii) accroître la participation de la Suède aux réductions des émissions de gaz à effet de serre à l’étranger ; et iv) améliorer les évaluations du cadre d’action. Ce document de travail se rapporte à l’Étude économique de la Suède 2011 (www.oecd.org/eco/etudes/Suede). |
| Keywords: | Sweden, renewable energy, climate change, carbon tax, greenhouse gas emissions, green certificates, climate change mitigation policy, Suède, changement climatique, taxes carbone, émissions de gaz à effet de serre, certificats verts, politiques d’atténuation du changement climatique |
| JEL: | Q48 Q54 Q58 |
| Date: | 2011–02–09 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:841-en&r=env |
| By: | Alex Bowen; James Rydge |
| Abstract: | The United Kingdom started to pursue policies to reduce greenhouse gas emissions at a relatively early date and now has a comprehensive set of measures in place. It has set clear targets for emission reductions consistent with international goals of limiting global warming and has pioneered statutory underpinning of target-setting. On the international stage, it has been an active protagonist of a global deal to limit human-induced climate change. The new Government has endorsed the direction of previous policies in this area and is introducing further measures, despite heavy fiscal pressures. The United Kingdom is likely to reduce emissions by more than its near-term domestic targets and its target under the Kyoto Protocol, outperforming many OECD countries in the latter respect. But some of the success has been due to ‘one-off’ factors such as the ‘dash for gas’, reductions in non-CO2 greenhouse gases in the 1990s and the recent recession, rather than explicit climate-change policies. The pace of decarbonisation of the power sector has been slow and the spread of renewable energy technologies limited. Implicit carbon prices vary across sectors, and should be harmonized to increase the cost efficiency of policy. The unevenness partly reflects the way in which policies have proliferated and overlap and a simplified structure would be desirable. A step–change in the pace of emission reductions is required to put the UK on the path towards its ambitious 2050 target. Given the central role of the EU emissions trading scheme, a key element of the UK strategy should be to seek tighter quotas within the EU scheme. Preparations to adapt to climate impacts also need to be stepped up, focusing on the provision of more information, better risk-assessment frameworks and more advanced metrics for monitoring and evaluation of adaptation planning. This paper relates to the 2011 Economic Survey of the United Kingdom (www.oecd.org/eco/surveys/uk)<P>La politique climatique au Royaume-Uni<BR>Le Royaume-Uni, qui a entrepris d’adopter des mesures de réduction des émissions de gaz à effet de serre à une date relativement précoce, met aujourd’hui en oeuvre une panoplie complète de mesures. Il s’est fixé des objectifs précis de réduction des émissions, cohérents avec les objectifs internationaux de limitation du réchauffement planétaire, et a fait oeuvre de précurseur en les adossant à un socle réglementaire. Sur la scène internationale, il a joué un rôle actif en faveur d’un accord mondial visant à limiter le changement climatique d’origine anthropique. Le nouveau gouvernement a repris à son compte les orientations des politiques antérieures dans ce domaine et il introduit actuellement de nouvelles mesures, malgré la rigueur des contraintes budgétaires. Le Royaume-Uni devrait atteindre un taux de réduction de ses émissions supérieur à celui de ses objectifs nationaux à court terme et de son objectif au titre du Protocole de Kyoto, et même dépasser nombre de pays de l’OCDE quant à la réalisation de ce dernier objectif. Mais une partie de ce succès s’explique, non par des mesures explicites de politique climatique, mais par des facteurs ponctuels comme la « ruée vers le gaz » et les réductions des émissions d’autres gaz à effet de serre que le CO2 dans les années 90 et la récession récente. Le rythme de décarbonisation du secteur de l’électricité a été lent et la diffusion des technologies des énergies renouvelables est encore limitée. Les prix implicites du carbone varient selon les secteurs et devraient être harmonisés pour une meilleure efficacité économique. Ces disparités reflètent la prolifération des mesures et leur chevauchement et il serait nécessaire d’en simplifier la structure. Un changement radical dans le rythme de réduction des émissions est nécessaire pour engager le Royaume-Uni sur la voie de la réalisation de l’objectif ambitieux qu’il s’est fixé à l’horizon 2050. Étant donné le rôle central du système communautaire d’échange de quotas d’émission, la stratégie du Royaume-Uni devrait en particulier viser l’adoption de quotas plus rigoureux dans le cadre du système communautaire. Les efforts d’adaptation aux impacts climatiques doivent aussi être renforcés, en s’attachant à développer l’information, à améliorer les cadres d’évaluation des risques, et à affiner les outils de mesure utilisés pour le suivi et l’évaluation de la planification des mesures d’adaptation. Ce document se rapporte à l’Étude économique du Royaume-Uni 2011 (www.oecd.org/eco/etudes/uk) |
| Keywords: | mitigation, adaptation, climate change policy, renewable energy policy, policy interaction, policy overlap, adaptation, atténuation, politique du changement climatique, politique des énergies renouvelables, interactions des politiques, chevauchement des politiques |
| JEL: | Q27 Q54 Q58 |
| Date: | 2011–08–10 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:886-en&r=env |
| By: | Millimet, Daniel L. (Southern Methodist University); Roy, Jayjit (Appalachian State University) |
| Abstract: | The validity of existing empirical tests of the Pollution Haven Hypothesis (PHH) is constantly under scrutiny due to two shortcomings. First, the issues of unobserved heterogeneity and measurement error in environmental regulation are typically ignored due to the lack of a credible, traditional instrumental variable. Second, while the recent literature has emphasized the importance of geographic spillovers in determining the location choice of foreign investment, such spatial effects have yet to be adequately incorporated into empirical tests of the PHH. As a result, the impact of environmental regulations on trade patterns and the location decisions of multinational enterprises remains unclear. In this paper, we circumvent the lack of a traditional instrument within a model incorporating geographic spillovers utilizing three novel identification strategies. Using state-level panel data on inbound U.S. FDI, relative abatement costs, and other determinants of FDI, we consistently find (i) evidence of environmental regulation being endogenous, (ii) a negative impact of own environmental regulation on inbound FDI in pollution-intensive sectors, particularly when measured by employment, and (iii) larger effects of environmental regulation once endogeneity is addressed. Neighboring environmental regulation is not found to be an important determinant of FDI. |
| Keywords: | foreign direct investment, environmental regulation, spillovers, instrumental variables, control function, heteroskedasticity |
| JEL: | C31 F21 Q52 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5911&r=env |
| By: | Halkos, George; Tzeremes, Nickolaos |
| Abstract: | This paper by applying a directional distance function approach measures the UK regions’ municipality waste performance. In addition the paper constructs conditional stochastic kernels trying to determine nonparametrically the association of regions’ GDP per capita levels with their calculated regional environmental efficiencies. There are evidences of regional environmental inefficiencies for the majority of UK regions regardless their regional GDP per capita levels. |
| Keywords: | Regional environmental performance; Directional distance function; Conditional stochastic kernel |
| JEL: | C6 Q5 O13 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:32934&r=env |
| By: | Brännlund, Runar (CERE); Carlén, Ola (Dept. of Forest Economics); Lundgren, Tommy (CERE); Marklund, Per-Olov (CERE) |
| Abstract: | This paper presents an approach for studying the socio-economic benefits and costs (CBA) of the introduction of intensified management measures in forestry. Besides from valuation of changes in timber production, assessments of different types of externalities are included in them assessment. The model is exemplified with the use of data from a Swedish governmental study undertaken in 2009 which present impacts on the Swedish forest sector if intensified management measures are applied on environmentally low-valued land and abandoned agricultural lands. The CBA shows that intensified management measures typically are private financially profitable. If these measures also become profitable from the society’s point of view depend on the size of the external effects including carbon balance. |
| Keywords: | Cost-benefit analysis; external effect; timber production; carbon sequestration; fuel substitution |
| JEL: | Q23 Q42 |
| Date: | 2011–08–22 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:slucer:2011_012&r=env |
| By: | Cornie Huizenga; Stefan Bakker |
| Keywords: | Infrastructure & Transport :: Railways, NAMA, Sustainable Transport, Bus Rapid Transit (BRT), Avoid-Shift-Improve, Transport Demand Management, Mobility, Greenhouse Gas Emissions, Latin America, BRIC, Climate Change Adaptation, Non-Motorized Transport, Urban Transport |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:8603&r=env |
| By: | Jean-Marc Burniaux; Jean Chateau |
| Abstract: | Quoting a joint analysis made by the OECD and the IEA, G20 Leaders committed in September 2009 to ?rationalize and phase out over the medium term inefficient fossil fuel subsidies that encourage wasteful consumption?. This analysis was based on the OECD ENV-Linkages General Equilibrium model and shows that removing fossil fuel subsidies in a number of non-OECD countries could reduce world Greenhouse Gas (GHG) emissions by 10% in 2050 (OECD, 2009). Indeed, these subsidies are huge. IEA estimates indicate that total subsidies to fossil fuel consumption in 37 non-OECD countries in 2008 amounted to USD 557 billions (IEA, OPEC, OECD, World Bank, 2010). This represents almost five times the yearly bilateral aid flows to developing countries as defined by the Official Development Assistance (ODA). This paper discusses the assumptions, data and both environmental and economic implications of removing these subsidies. It shows that, though removing these subsidies would amount to roughly a seventh of the effort needed to stabilize GHG concentration at a level of 450ppm or below 2°C, the full environmental benefit of this policy option can only be achieved if, in parallel, emissions are also capped in OECD countries. Finally, though removing these subsidies qualifies as being a ?win-win? option at the global level in terms of environmental and economic benefits, this is not true for all countries/regions. The paper also provides some discussion about the robustness of these results.<P>Impact potentiel de l'élimination des subsides à la consommation des énergies fossiles sur les émissions de gaz à effet de serre : une évaluation en équilibre général<BR>Se réfèrant à une analyse entreprise conjointement par l'OCDE et l'AIE, les dirigeants du G20 se sont engagés en Septembre 2009 à "rationaliser et éliminer dans le moyen terme les subsides inefficaces des énergies fossiles qui encouragent un gaspillage de leur consommation". Cette analyse, fondée sur les résultats du modèle d'équilibre général ENV-Linkages de l'OCDE, montre que l'élimination des subsides à la consommation d'énergies fossiles dans un certain nombre de pays non-OCDE pourrait réduire les émissions mondiales de gaz à effet de serre (GES) de 10% en 2050 (OECD, 2009). Ces subsides sont, en effet, très importants. Les estimations de l'AIE indiquent que les subsides à la consommation d'énergies fossiles dans 37 pays non-OCDE correspondaient à 557 milliards de dollars US en 2008 (IEA, OPEC, OECD, World Bank, 2010). Ceci représente presque cinq fois la somme totale de l'aide bilatérale annuelle aux pays en développement telle que définie par le Comité d'aide au Développement de l'OCDE. Ce document décrit les hypothèses, les données et les conséquences tant environnementales qu'économiques de l'élimination de ces subsides. Il montre que, bien que l'élimination de ces subsides ne compterait que pour un septième environ de l'effort total requis pour stabiliser les concentrations de GES dans l'atmosphère à un niveau de 450 ppm, correspondant à une hausse de la température inférieure à 2°C, la totalité du bénéfice environnemental de cette option ne pourrait être atteint qu'à condition que les émissions dans les pays de l'OCDE soient simultanément sous contrainte. Enfin, malgré le fait que l'élimination de ces subsides implique des bénéfices au niveau mondial à la fois sur le plan environnemental et économique, ceci n'est pas nécessairement le cas au niveau des pays ou des régions. Le document contient aussi une analyse de la robustesse de ces résultats. |
| Keywords: | general equilibrium models, fossil-fuel subsidies, GHGs emissions, Subsides des énergies fossiles, modèles d'équilibre général, émissions des GES |
| JEL: | H23 O41 Q56 |
| Date: | 2011–04–08 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:853-en&r=env |
| By: | Chester, Mikhail; Horvath, Arpad |
| Abstract: | Vehicle manufacturing effects are critical life-cycle components in the total costs of vehicle travel and future manufacturing processes should be evaluated for travel forecasts. With efforts to introduce lightweight materials, increased fuel economy, and new technologies such as electric vehicles, understanding the energy and environmental effects of these expected vehicles is critical. Current vehicle manufacturing energy use and greenhouse gas emissions are summarized from existing research for passenger (conventional gasoline vehicles, hybrid electric vehicles, aircraft, high-speed rail) and freight (trucks, trains, and ocean going vessels) modes. Future vehicle manufacturing effects are then determined incorporating the aforementioned modes as well as plug-in hybrid and battery electric vehicles. |
| Keywords: | Engineering, Operations Research, Systems Engineering and Industrial Engineering |
| Date: | 2011–08–23 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsrrp:2185789&r=env |
| By: | Wang , Hua; He, Jie; Kim, Yoonhee; Kamata, Takuya |
| Abstract: | Municipal solid waste management continues to be a major challenge for local governments in both urban and rural areas across the world, and one of the key issues is their financial constraints. Recently an economic analysis was conducted in Eryuan, a poor county located in Yunnan Province of China, where willingness to pay for an improved solid waste collection and treatment service was estimated and compared with the project cost. This study finds that the mean willingness to pay is about 1 percent of household income and the total willingness to pay can basically cover the total cost of the project. The analysis also shows that the poorest households in Eryuan are not only willing to pay more than the rich households in terms of income percentage in general, but also are willing to pay no less than the rich in absolute terms where no solid waste services are available; the poorest households have stronger demand for public solid waste management services while the rich have the capability to take private measures when public services are not available. |
| Keywords: | Urban Solid Waste Management,Environmental Economics&Policies,Waste Disposal&Utilization,Energy and Environment,Environment and Energy Efficiency |
| Date: | 2011–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5767&r=env |
| By: | Anthony J. Venables |
| Abstract: | This paper develops a model in which supply of a non-renewable resource can adjust through two margins: the rate of depletion and the rate of field opening. Faster depletion of existing fields means that less of the resource can ultimately be extracted, and optimal depletion of open fields follows a (modified) Hotelling rule. Opening a new field involves sinking a capital cost, and the timing of field opening is chosen to maximize the present value of the field. Output dynamics depend on both depletion and field opening, and supply responses to price changes are studied. In contrast to Hotelling, the long run equilibrium rate of growth of prices is independent of the rate of interest, depending instead on characteristics of demand and geologically determined supply. |
| Keywords: | natural resource, depletion, Hotelling, fossil fuel, carbon tax |
| JEL: | Q3 Q5 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:062&r=env |
| By: | Will Gans (AREC, University of Maryland, College Park); Anna Alberini (Department of Agricultural Economics, university of Maryland, US and Centre for Energy Policy and Economics (CEPE), ETH Zurich, Switzerland); Alberto Longo (Gibson Institute for Land Food and Environment, UKCRC Centre of Excellence for Public Health (NI), School of Biological Sciences, Queen‘s University, Belfast) |
| Abstract: | Using a unique set of data and exploiting a large-scale natural experiment, we estimate the effect of real-time usage information on residential electricity consumption in Northern Ireland. Starting in April 2002, the utility replaced prepayment meters with "smart" meters that allow the consumer to track usage in real-time. We rely on this event, account for the endogeneity of price and plan with consumption through a plan selection correction term, and find that the provision of information is associated with a decline in electricity consumption of up to 20 percent. We find that the reduction is robust to different specifications, selection-bias correction methods and subsamples of the original data. At GBP 15-17 per tonne of CO2e (2009), the smart meter program delivers cost-effective reductions in carbon dioxide emissions. |
| Keywords: | Residential Energy, Electricity Demand, Feedback, Smart Meter, Information |
| JEL: | Q40 Q41 D8 |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:cee:wpcepe:11-78&r=env |
| By: | Ali, Daniel Ayalew; Deininger, Klaus; Goldstein, Markus |
| Abstract: | Although increased global demand for land has led to renewed interest in African land tenure, few models to address these issues quickly and at the required scale have been identified or evaluated. The case of Rwanda's nation-wide and relatively low-cost land tenure regularization program is thus of great interest. This paper evaluates the short-term impact (some 2.5 years after completion) of the pilots undertaken to fine-tune the approach using a geographic discontinuity design with spatial fixed effects. Three key findings emerge from the analysis. First, the program improved land access for legally married women (about 76 percent of married couples) and prompted better recordation of inheritance rights without gender bias. Second, the analysis finds a very large impact on investment and maintenance of soil conservation measures. This effect was particularly pronounced for female headed households, suggesting that this group had suffered from high levels of tenure insecurity, which the program managed to reduce. Third, land market activity declined, allowing rejection of the hypothesis that the program caused a wave of distress sales or widespread landlessness by vulnerable people. Implications for program design and policy are discussed. |
| Keywords: | Common Property Resource Development,Banks&Banking Reform,Municipal Housing and Land,Urban Housing,Rural Land Policies for Poverty Reduction |
| Date: | 2011–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5765&r=env |
| By: | Wang, Hua; Shi, Yuyan; Kim, Yoonhee; Kamata, Takuya |
| Abstract: | While polluted surface water is encountered across most of China, few economic valuation studies have been conducted on water quality changes. Limited information about the economic values associated with those potential water quality improvements or deteriorations is a disadvantage for making proper choices in water pollution control and clean-up activities. This paper reports an economic valuation study conducted in Yunnan, China, which aims to estimate the total value of a real investment project to improve the water quality of Lake Puzhehei by one grade level. Located in Qiubei County, which is far from large cities, the lake has been experiencing fast water quality deterioration in the past years. A conservative estimation strategy shows that on average a household located in Qiubei County is willing to pay about 30 yuan per month continuously for 5 years for water quality improvement, equivalent roughly to 3 percent of household income. The elasticity of willingness-to-pay with respect to income is estimated to be 0.21. The economic rate of return of the proposed project is estimated to be 18 percent, indicating a strong demand and high efficiency of investment in water quality improvement in China. This study also demonstrates that previous knowledge about water quality changes and the project may have a significant positive impact on people's valuation, and that the interviewer effect on valuation can be negative. |
| Keywords: | Water and Industry,Environmental Economics&Policies,Water Supply and Sanitation Governance and Institutions,Town Water Supply and Sanitation,Water Supply and Systems |
| Date: | 2011–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5766&r=env |
| By: | Dominique Gusbin; Marie Vandresse |
| Abstract: | This study aims to analyse the impact of two transport pricing policies using the PLANET model. The transport policies are (1) a harmonisation of excise duties on petrol and diesel and (2) road pricing for heavy goods vehicles in accordance with the EU proposal for the Eurovignette III directive. The effects studied concern the consequences for the transport activity for persons and goods, the environmental impact and the impact on social welfare. For both policy types, the impact on the public budget is neutralized through general taxation or labour taxation. |
| Keywords: | Long-term forecasting, Transport policy, Passenger and freight transport |
| JEL: | C69 R41 R48 |
| Date: | 2011–01–27 |
| URL: | http://d.repec.org/n?u=RePEc:fpb:wpaper:1102&r=env |
| By: | Nagl, Stephan (Energiewirtschaftliches Institut an der Universitaet zu Koeln); Fürsch, Michaela (Energiewirtschaftliches Institut an der Universitaet zu Koeln); Jägemann, Cosima (Energiewirtschaftliches Institut an der Universitaet zu Koeln); Bettzüge, Marc Oliver (Energiewirtschaftliches Institut an der Universitaet zu Koeln) |
| Abstract: | In this article we analyze the value of thermal energy storages in concentrated solar plants depending on the electricity generation mix. To determine the value from a system integrated view we model the whole electricty generation market of the Iberian Peninsula. <p> Key findings for thermal energy storage units in concentrated solar plants include an increasing value in electricity systems with higher shares of fluctuating renewable generation and a potentially significant role in a transformation to a primarily renewable based electricity system. Due to the relatively high investment costs concentrated solar power plants with or without thermal energy storages are not cost efficient in todays electricity markets. <p> However, expected cost reductions due to learning curve effects and higher fluctuating renewable generation may lead to a comparative cost advantage of concentrated solar power plants with thermal energy storages compared to other renewable technologies. |
| Keywords: | Fluctuating renewables; value of storage; concentrated solar power; power plant optimization |
| JEL: | C61 Q40 |
| Date: | 2011–08–23 |
| URL: | http://d.repec.org/n?u=RePEc:ris:ewikln:2011_008&r=env |
| By: | Paola Bertolini; Francesco Pagliacci |
| Abstract: | In 2010, the Lisbon Strategy came to its end. Even if many targets have not been fully reached by each of the 27 EU Members, a new and more ambitious reform strategy has been launched: the Europe 2020 Strategy. In order to evaluate the results of the Lisbon Strategy and of Europe 2020 Strategy, many indicators are yearly collected and published by EUROSTAT. From the analysis of these indicators, the work analyses how different European countries perform in economic, social and environmental issues. The paper moves from the works of Sapir [2006], who has already underlined – among the EU-15 – the existence of four different European social models (Nordic, Anglo- Saxon, Continental, Mediterranean), sharing different combinations of economic efficiency and social equity. This work tries to go further. First, it also underlines the role of the environmental issues in defining a sustainable European social model. Then, the analysis includes also Eastern countries, trying to identify the existence of possible Eastern social models. Therefore, in order to identify different European social models, we use a multivariate statistics methodology, i.e. the Principal Component Analysis (PCA), applied to a set of 20 variables (all the variables included in the short list of indicators from EU plus other environmental indicators) collected for all the European countries. The obtained results are among the expected ones. Sapir’s results are largely confirmed. In particular the supremacy of the Nordic model is straightforward. On the opposite side, when including environmental indicators, the Anglo-Saxon model seems to perform worse than Mediterranean one. Finally, referring to Eastern countries, a single social model does not emerge. |
| Keywords: | European policies, Lisbon Strategy, social models, sustainability |
| JEL: | R11 R58 |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:mod:cappmo:0088&r=env |
| By: | Rema Hanna; Paulina Oliva |
| Abstract: | Moderate effects of pollution on health may exert an important influence on labor market decisions. We exploit exogenous variation in pollution due to the closure of a large refinery in Mexico City to understand how pollution impacts labor supply. The closure led to an 8 percent decline in pollution in the surrounding neighborhoods. We find that a one percent increase in sulfur dioxide results in a 0.61 percent decrease in the hours worked. The effects do not appear to be driven by labor demand shocks nor differential migration as a result of the closure in the areas located near the refinery. |
| JEL: | O0 Q0 Q5 Q53 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17302&r=env |
| By: | Richter, Jan (Energiewirtschaftliches Institut an der Universitaet zu Koeln) |
| Abstract: | A linear energy system model is presented which optimises the future development of electricity generation capacities and their dispatch in Europe. Besides conventional power plants, combined heat and power plants and power storages, the model considers technologies that support the future high feed in of renewable energies. These technologies include demand side management processes and virtual power storages consisting of electric vehicles. |
| Keywords: | Energy system model; European electricity markets; Combined heat and power; Demand Side Management; Battery electric vehicles |
| JEL: | C61 Q40 Q41 |
| Date: | 2011–08–22 |
| URL: | http://d.repec.org/n?u=RePEc:ris:ewikln:2011_003&r=env |
| By: | Lucas W. Davis; Catherine Wolfram |
| Abstract: | For the first four decades of its existence the U.S. nuclear power industry was run by regulated utilities, with most companies owning only one or two reactors. Beginning in the late 1990s electricity markets in many states were deregulated and almost half of the nation’s 103 reactors were sold to independent power producers selling power in competitive wholesale markets. Deregulation has been accompanied by substantial market consolidation and today the three largest companies control more than one-third of all U.S. nuclear capacity. We find that deregulation and consolidation are associated with a 10 percent increase in operating efficiency, achieved primarily by reducing the frequency and duration of reactor outages. At average wholesale prices the value of this increased efficiency is approximately $2.5 billion annually and implies an annual decrease of almost 40 million metric tons of carbon dioxide emissions. |
| JEL: | D21 D40 L51 L94 Q48 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17341&r=env |
| By: | Keisaku Higashida (School of Economics, Kwansei Gakuin University); Kenta Tanaka (Graduate School of Environmental Studies, Tohoku University); Shunsuke Managi (Graduate School of Environmental Studies, Tohoku University) |
| Abstract: | Marine resource depletion is a critical concern for humankind. Individual Transferable Quota (ITQ) regimes are among the most effective measures to tackle this problem. Employing an experimental approach, this study examines the rationality of fishers under an ITQ regime. In particular, this study focuses on the case where fishers can change their own vessel scales in the beginning of each period in each experiment. We find that the higher the quota price is, the more irrationally fishers behave. Moreover, vessel scales and initial allocations can influence the rationality of fishers. |
| Keywords: | Individual Transferable Quotas (ITQs), experiment, rational behavior |
| JEL: | C91 Q22 Q28 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:kgu:wpaper:73&r=env |