|
on Environmental Economics |
|
Issue of 2014‒12‒29
forty-six papers chosen by Francisco S. Ramos Universidade Federal de Pernambuco |
| By: | Lucas Bretschger; Christos Karydas |
| Abstract: | We study the eects of greenhouse gas emissions on optimum growth and climate policy by using an endogenous growth model with polluting non-renewable resources. Climate change harms the capital stock. Our main contribution is to introduce and extensively explore the naturally determined time lag between greenhouse gas emission and the damages due to climate change, which proves to be crucial for the transition of the economy towards its steady state. The social optimum and the optimal abatement policies are fully characterized. The inclusion of a green technology delays optimal resource extraction.The optimal tax rate on emissions is proportional to output. Poor understanding of the emissions diffusion process leads to suboptimal carbon taxes and suboptimal growth and resource extraction. |
| Keywords: | Non-Renewable Resource Dynamics, Pollution Diffusion Lag, Optimum Growth, Clean Energy, Climate Policy |
| JEL: | Q54 O11 Q52 Q32 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:144&r=env |
| By: | Jehan Sauvage |
| Abstract: | This report assesses conceptually and empirically the extent to which the stringency of environmental regulations drives international trade in environmental goods. Many of the measures governments adopt to address issues such as local air and water pollution or GHG emissions take the form of regulations that aim to change the behaviour of firms or households. Compliance by private actors with those regulations in turn generates a growing market for environmental goods and services that is increasingly international in scope as more countries tighten their environmental regulations. Regulatory stringency thus spurs the development of a market for a whole range of equipment specifically meant for preventing and abating pollution, with important implications for international trade in such equipment. The different indicators of regulatory stringency considered in the present analysis generally support the notion that the stringency of environmental regulations positively affects countries’ specialisation in environmental products, even when considering specific sectors such as solid-waste management or wastewater treatment. While increased trade in environmental products is not an end in itself, the environmental benefits this entails can contribute to global improvements in environmental quality. By increasing demand for environmental products and technologies, environmental policy can complement trade policy in supporting pollution-reduction efforts not just domestically, but also abroad. |
| Keywords: | environment, trade, environmental goods, comparative advantage, environmental regulations, wastewater treatment, solid waste management |
| JEL: | F14 F18 Q53 Q56 Q58 |
| Date: | 2014–12–05 |
| URL: | http://d.repec.org/n?u=RePEc:oec:traaaa:2014/3-en&r=env |
| By: | Jacint Balaguer (Department of Economics and Instituto de Economía Internacional, Universitat Jaume I, Castellón, Spain); Manuel Cantavella-Jordá (Department of Economics and Instituto de Economía Internacional, Universitat Jaume I, Castellón, Spain) |
| Abstract: | A structural analysis on an environmental Kuznets curve (EKC with oil prices is carried out for Spain from 1874 to 2011. The dynamics of the long and short-term relationships among carbon dioxide (CO2), economic growth and oil prices is captured through an autoregressive distributed lag (ARDL) model. The EKC hypothesis is supported in a context where real oil price increases play a significant role on the reduction of CO2 emissions. Hence, the results suggest that oil taxes should be taken into account as an effective tool of environmental policy. |
| Keywords: | Environmental Kuznets curve, CO2, oil prices, autoregressive distributed lag model, time series |
| JEL: | Q53 Q56 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:jau:wpaper:2014/22&r=env |
| By: | Fisher, Anthony |
| Keywords: | Social and Behavioral Sciences, Climate change, nonlinearities, catastrophic events |
| Date: | 2014–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:agrebk:qt746627gz&r=env |
| By: | Chatterjee, Tonmoy |
| Abstract: | This paper considers some contemporary environmental problems like carbon emission, deforestation etc, faced by mainly the developing nations of the world. In this context I have considered some facts and figures of Indian Tannery industry for realization of above mentioned issue. In this paper an attempt has been made to analyze theoretically, the effect of environmental pollution on the output of different sectors in a small open economy. Here, I have presented a theoretical model based on the general equilibrium framework, which mainly highlights on a paradoxical result. The paradox exists in the sense that, with strict environmental control, the formal sector subcontracts their production to the informal sector, thereby accentuating the total level of pollution faced by the society. |
| Keywords: | Dirty goods, Environmental pollution, Applied General equilibrium and Informal sector |
| JEL: | D58 Q53 Q58 |
| Date: | 2014–12–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:60583&r=env |
| By: | Sofia Teives Henriques (University of Southern Denmark); Karol J. Borowiecki (University of Southern Denmark) |
| Abstract: | Fossil-fuel-related carbon dioxide emissions have risen dramatically since 1800. We identify the long-run drivers of CO2 emissions for a sample of twelve developed economies using an extended Kaya decomposition. By considering biomass and carbon-free energy sources along with fossil fuels we are able to shed light on the effects of past and present energy transitions on CO2 emissions. We find that at low levels of income per capita, fuel switching from biomass to fossil fuels is the main contributing factor to emission growth. Scale effects, especially income effects, become the most important emission drivers at higher levels of income and also dominate the overall long-run change. Technological change is the main offsetting factor. Particularly in the last decades, technological change and fuel switching have become important contributors to the decrease in emissions in Europe. Our results also individualize the different CO2 historical paths across parts of Europe, North America and Japan. |
| Keywords: | CO2 emissions, Kaya decomposition, Energy transition |
| JEL: | N70 O44 Q40 Q54 Q5 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:hes:wpaper:0062&r=env |
| By: | Kemp-Benedict, Eric |
| Abstract: | In the face of increasingly likely dangerous climate change, many developing countries are designing green economy or low-emissions development strategies, but are simultaneously on a course of investment locking them into high-emission infrastructure. Meanwhile, many high-income countries are working to reduce their emissions but are hampered by the cost of switching from an existing capital stock designed for a fossil fuel-based economy. This paper looks at economic aspects of the challenge of escaping carbon lock-in using a “brown-green capital” model. In the model, brown capital is more productive than green capital in a brown capital-dominated economy, while green capital is more productive in a green capital-dominated economy; that is, the model allows for “carbon lock-out”. We explore possible macroeconomic consequences of policies to drive a transition to a low-carbon economy and policy responses in the case that macroeconomic imbalances result. Three results are particularly interesting. First, the effect of policy instruments depends on whether the economy is wage-led or profitled, a distinction that emerges from post-Keynesian theory. Second, if investors hedge against uncertainty over expected levels of green and brown investment, then there is likely to be underinvestment in green capital even at quite high levels of green capital penetration, creating a substantial challenge for policymakers. Third, the model suggests an unusual role for a carbon price, to control inflationary pressure arising from public green capital investment, in addition to its usual role of encouraging emissions reductions at the margin. |
| Keywords: | green economy; brown-green capital; carbon lock-in; post-Keynesian; Kaleckian |
| JEL: | E12 E61 G11 Q01 |
| Date: | 2014–11–25 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:60175&r=env |
| By: | Debashis Chakraborty (Indian Institute of Foreign Trade, Kolkata, India); Sacchidananda Mukherjee (National Institute of Public Finance and Policy, New Delhi, India) |
| Abstract: | Over the last decade cross-country trade and investment flows have increased considerably, which is often linked to climate change concerns. The present analysis attempts to understand the influence of trade and investment flows on CO2 emissions through panel data model estimation for a set of 181 countries over 1990-2009. The empirical findings confirm that both in case of lower and higher income countries, higher merchandise trade growth in general and service and merchandise export growth in particular leads to the higher CO2 emission growth in their territories. Both FDI inward and outward stock is found to be positively related to CO2 emission, reflecting a complementary relationship between the two. The empirical results indicate that the composition, scale and technology effects significantly influence the trade-climate change interrelationship. |
| Keywords: | environment and trade, foreign direct investment, climate change; democracy. |
| JEL: | F21 Q56 |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:ift:wpaper:1321&r=env |
| By: | Asjad Naqvi |
| Abstract: | The paper presents a benchmark multi-sectoral stock-flow consistent (SFC) macro model which addresses issues of production, energy, and emissions in a demand-driven framework. The model introduces three innovations in modeling the production side of the economy. First, the firms and the energy producers are vertically integrated interlinking output and prices across the two sectors. Second, energy supply is generated from two different sources; a non-renewable input dependent high-emissions energy and a renewable zero-emissions energy. Third, the monetary economy is integrated with the environment through two channels; a non-renewable input extracted for energy production and Greenhouse Gasses (GHGs) accumulated through the production process. Five policy experiments are conducted on a calibrated economy; a reduction in consumption, capital damage function, a higher share of renewable energy, carbon taxes, technological shock to capital and energy productivity. Results show that different policy channels can yield the same macro outcomes although through very different adjustment processes especially in unemployment, prices, and income distributions. |
| Keywords: | Stock-flow consistent, production, energy, emissions, distributions, employment |
| JEL: | E12 E17 E23 E24 Q52 Q56 |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:feu:wfeppr:y:2014:m:11:d:0:i:18&r=env |
| By: | de Zeeuw, Aart J.; van der Ploeg, Frederick |
| Abstract: | The optimal reaction to a pending productivity shock of which the expected arrival time increases with global warming is to accumulate more precautionary capital to smooth consumption and to levy a carbon tax, proportional to the marginal hazard of a catastrophe, to curb the risk of climate change. The carbon tax holds down the stock of greenhouse gases, so that the risk of catastrophe decreases and less precautionary saving is needed. We also allow for conventional marginal climate damages and decompose the optimal carbon tax in two catastrophe components and a conventional Pigouvian component. Further, the productivity catastrophe is compared with recoverable catastrophes and with a catastrophe shock to the temperature response. Finally, the trade-off between adaptation capital and capital used for production is analyzed. |
| Keywords: | adaptation capital; economic growth; non-marginal climate shock; precaution; risk avoidance; social cost of carbon; tipping point |
| JEL: | D81 H20 O40 Q31 Q38 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:9982&r=env |
| By: | Mohammed Al-Ahmad; Marwan Dimashki; Samia Al-Duaij; Tom Roundell |
| Keywords: | Macroeconomics and Economic Growth - Climate Change Economics Energy - Energy and Environment Water Resources - Water and Industry Energy - Energy Production and Transportation Environment - Environment and Energy Efficiency |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:20564&r=env |
| By: | Gebretsadik, Yohannes; Strzepek, Kenneth; Schlosser, C. Adam |
| Abstract: | Traditional .delta-change. approach of scenario generation for climate change impact assessment to water resources strongly depends on the selected base-case observed historical climate conditions that the climate shocks are to be super-imposed. This meth |
| Keywords: | climate change, hybrid uncertainty, Zambezi, Congo |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2014-112&r=env |
| By: | Ciccone, Alice (Dept. of Economics, University of Oslo) |
| Abstract: | In 2007, the Norwegian government reformed the vehicle registration tax in order to reduce the CO2 emissions intensity of the new car fleet by incentivizing the purchase of more fuel efficient cars. This paper identifies the impact of the new tax structure on four dimensions: 1) the average CO2 emissions intensity of new registered vehicles, 2) the relative change between low and high polluting cars, 3) the market share of diesel cars and 4) the average weight of the fleet. A Difference in Difference approach is employed to estimate the short run effects on each outcome variable of interest. The results show that, as a consequence of the tax reform, the average CO2 intensity of new vehicles was reduced in the short run by at least 6 gCO2/Km, which is about half of the overall reduction observed when including supply effects. This reduction is the result of a 12 percentage points drop in the share of highly polluting cars and of an increase of about 23 percentage points in the market share of diesel cars. Lastly, the mass of the average fleet increased by at least 10 Kg. |
| Keywords: | CO2 emissions intensity; New vehicles; Vehicle registration tax; Tax reform; Norway; Diesel |
| JEL: | H25 L62 Q51 Q53 Q54 Q58 R48 |
| Date: | 2014–08–30 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:osloec:2014_019&r=env |
| By: | Athanasios Lapatinas (University of Ioannina); Anastasia Litina (CREA, Université du Luxembourg); Eftichios Sophocles Sartzetakis (University of Macedonia) |
| Abstract: | The paper introduces an additional channel via which corruption may adversely affect environmental quality. It is argued that, in the presence of corruption, politicians may allocate a large fraction of public funds to environmental projects aiming not at improving environmental quality, but rather at increasing their ability to extract rents. This type of behavior has a direct and an indirect effect on environmental quality. First, due to extensive rent-seeking, the effectiveness of environmental projects is disproportional to the amount of public funds allocated to them. Second, citizens who observe the poor outcome of environmental projects, increase tax evasion thus reducing public funds. A vicious circle of extensive tax evasion and rent seeking activities emerges, that has a detrimental effect on envi- ronmental quality. Anecdotal evidence from a number of countries that experience high levels of corruption shows little or no improvements in environmental quality despite the implementation of environmental projects. In line with our theoretical findings, this ineffectiveness of the environmental policy is present even when the technology involved is advanced. |
| Keywords: | Corruption, Environment, Technology |
| JEL: | Q5 D73 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:luc:wpaper:14-29&r=env |
| By: | Dudu, Hasan; Cakmak, Erol H. |
| Abstract: | The effects of climate change in Turkey are expected to be significant. The aim of this paper is to quantify the effects of climate change on the overall economy by using an integrated framework incorporating a computable general equilibrium model and a c |
| Keywords: | agriculture, climate change, computable general equilibrium, integrated assessment, Turkey |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2014-106&r=env |
| By: | Hubert Stahn (Aix-Marseille University (Aix-Marseille School of Economics), CNRS, & EHESS); Agnès Tomini (Aix-Marseille University (Aix-Marseille School of Economics), CNRS, & EHESS) |
| Abstract: | Rainwater harvesting, consisting in collecting runoff from precipitation, has been widely developed to stop groundwater declines and even raise water tables. However this expected environmental effect is not self-evident. We show in a simple setting that the success of this conjunctive use depends on whether the runoff rate is above a threshold value. Moreover, the bigger the storage capacity, the higher the runoff rate must be to obtain an environmentally efficient system. We also extend the model to include other hydrological parameters and ecological damages, which respectively increase and decrease the environmental efficiency of rainwater harvesting. |
| Keywords: | groundwater management, rainwater harvesting, optimal control, conjunctive use |
| JEL: | Q15 Q25 C61 D61 |
| URL: | http://d.repec.org/n?u=RePEc:aim:wpaimx:1452&r=env |
| By: | Ouraich, Ismail; Tyner, Wallace E. |
| Abstract: | The paper provides estimates of economic impacts of climate change, compares these with historical impacts of drought spells, and estimates the extent to which the current Moroccan agricultural development and investment strategy, the Plan Maroc Vert, hel |
| Keywords: | CGE models, agricultural policy, adaptation, climate change, SRES scenarios, uncertainty |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2014-083&r=env |
| By: | Peter Heindl (Centre for European Economic Research (ZEW)); Peter J. Wood (Crawford School of Public Policy, The Australian National University); Frank Jotzo (Crawford School of Public Policy, The Australian National University) |
| Abstract: | This paper examines the effects of combining an international cap-and-trade scheme with national carbon taxes. We consider a two-country stochastic partial equilibrium model with log-normally distributed uncertainty. The situation is analogous to the situation where European countries impose national carbon taxes in addition to the EU emissions trading. The allowance price in the joint cap-and-trade scheme depends on the tax rate, the relative size of countries and abatement options, the magnitude of uncertainty, and correlation of abatement costs. In most cases, the additional tax will not lead to additional production of the public good beyond the fixed targets. The additional tax results in higher costs of abatement to the country introducing the additional tax, and higher costs overall. |
| Keywords: | prices vs. quantities, linking, cap-and-trade, carbon tax, uncertainty, EU Emissions Trading Scheme |
| JEL: | Q53 H23 H41 |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:een:ccepwp:1418&r=env |
| By: | Silvia Albrizio; Enrico Botta; Tomasz Koźluk; Vera Zipperer |
| Abstract: | Environmental policies address wellbeing and sustainability objectives, affecting firm and household behaviour. A newly developed, cross-country composite proxy of environmental policy stringency (EPS) shows that stringency has been increasing across OECD countries over the past two decades. However, the tightening environmental policies have had little effect on aggregate productivity, spurring primarily short-term adjustments. Nevertheless, they have led to various effects within the economy - the most technologically advanced industries and firms have seen a small increase in productivity, possibly being in the best position to adapt. Least productive firms have seen their productivity fall. Part of the effect is likely to have taken place through entry and exit of firms and relocation of activities. Finally, this project provides evidence on the anti-competitive bias of some aspects of environmental policies. The indicator of Burdens on the Economy due to Environmental Policies (BEEP) shows that barriers to entry and competition, and the consideration given to economic effects of environmental policies vary notably across countries, but that this variation is not related to the stringency of policies. Hence, to support both economic and environmental outcomes, stringent environmental policies can and should be implemented with minimum barriers to entry and competition.<P>Les politiques environnementales influent-elles sur la croissance de la productivité ? : Enseignements tirés de nouvelles mesures des politiques environnementales nationales<BR>Les politiques environnementales sont axées sur des objectifs de bien-être et de durabilité, et influent sur le comportement des entreprises et des ménages. Un indice composite de rigueur des politiques environnementales, de couverture internationale, élaboré récemment montre que la rigueur de ces politiques s'est accentuée dans les pays de l'OCDE au cours des deux dernières décennies. Ce durcissement des politiques environnementales a cependant eu peu d'effets sur la productivité globale, entraînant essentiellement des ajustements à court terme. Néanmoins, cela a eu diverses répercussions dans les économies : les secteurs et les entreprises les plus avancés sur le plan technologique ont vu leur productivité progresser légèrement, peut-être parce qu'ils étaient les mieux placés pour s'adapter. À l'inverse, les entreprise dont la productivité était la plus faible ont vu celle-ci diminuer. Ces effets sont sans doute en partie liés à des entrées et sorties d'entreprises ainsi qu'à des transferts d'activités. Enfin, le projet fournit des éléments d'information sur les aspects anticoncurrentiels de la conception des politiques environnementales. L'indicateur de la charge imposée à l'économie par les politiques environnementales montre que ces obstacles varient sensiblement d'un pays à l'autre, mais que cette variation n'est pas liée à la rigueur des politiques. Par conséquent, pour favoriser la réalisation des objectifs visés tant sur le plan économique qu'écologique, il est possible et souhaitable d'appliquer des politiques environnementales rigoureuses tout en réduisant au minimum les obstacles à l'entrée préjudiciables à la concurrence qui en découlent. |
| Keywords: | multifactor productivity, environmental regulations, anti-competitive regulation, environmental policies, barriers to entry, politiques environnementales, productivité multifactorielle, obstacles à l'entrée, réglementation anticoncurrentielle, réglementation environnementale |
| JEL: | O47 Q50 Q58 |
| Date: | 2014–12–03 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1176-en&r=env |
| By: | Henriet, F.; Maggiar, N.; Schubert, K. |
| Abstract: | We build, calibrate and simulate a stylized energy-economy model designed to evaluate the magnitude of carbon tax that would allow the French economy to reduce by a factor of four its CO2 emissions at a forty-year horizon. We estimate the substitution possibilities between fossil energy and other factors for households and firms. We build two versions of the model, the first with exogenous technical progress, and the second with an endogeneisation of the direction of technical progress. We show that if the energy-saving technical progress rate remains at its recent historical value, the magnitude of the carbon tax is quite unrealistic. When the direction of technical progress responds endogenously to economic incentives, CO2 emissions can be reduced by more than that allowed by the substitution possibilities, but not by a factor of four. To achieve this, an additional instrument is needed, namely a subsidy to fossil energy-saving research. The redirection of technical progress, which is a driver of energy transition, comes at a small cost in terms of the overall growth rate of the economy. |
| Keywords: | CGE model, Energy, Environment, Carbon Tax. |
| JEL: | C32 Q4 Q54 Q55 Q58 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:bfr:banfra:478&r=env |
| By: | Noussair, C.N. (Tilburg University, Center For Economic Research); van Soest, D.P. (Tilburg University, Center For Economic Research) |
| Abstract: | Abstract: We summarize and review the literature on two types of economic experiments. First we discuss the use of experimental laboratories to testbed market solutions to issues in environmental policy. We concentrate on experiments with one and two-sided markets, and applications in the domain of water allocation, food safety, and tradable permit systems. Second, we explore the consequences for environmental policies of the vast body of literature refuting the assumption that humans are only concerned with their own private welfare. We review the literature addressing whether government intervention is always necessary to protect the environment, and also whether it is always effective in doing so. |
| Keywords: | Survey; experiment; environment; social dilemma |
| JEL: | C92 Q20 Q30 Q50 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiucen:5ccc4032-fc1e-453c-9a96-a85978ccab4a&r=env |
| By: | Ben White (University of Western Australia); Nick Hanley (School of Geography and Sustainable Development, University of St. Andrews) |
| Abstract: | Payments for ecosystem service outputs have become a popular policy prescription for a range of agri-environmental schemes. The focus of this paper is on the choice of sets of instruments in an ecosystem service principal-agent model that addresses adverse selection and moral-hazard. Results show that input-based and output-based contracts are equivalent where there is full information. With missing information, input-based contracts are more efficient at reducing the informational rent related to adverse selection than output-based contracts. There is an efficiency gain related to using mixed contracts especially where one input is not observable. These contracts allow the regulator to target variables that are costly-to-fake as opposed to those prone to moral hazard such as labour inputs. We then consider the implications of moral hazard and dynamic contracting. An overall finding is that in designing agri-environmental schemes, it is critical that the regulator has an understanding of the link between actions and ecosystem service outputs and, ideally, an estimate of their economic value. Without these in place, payment for ecosystem service schemes will be inefficient and poorly targeted. |
| Keywords: | payments for ecosystem services, principal-agent models, moral hazard, adverse selection, mechanism design |
| JEL: | D82 Q24 Q57 Q58 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:sss:wpaper:2014-08&r=env |
| By: | Senem Kozaman |
| Abstract: | After 1980's as a result of neo-liberal policies in development strategies of Turkey, coastal areas exposed a massive pressure on its environmental resources. Attractiveness of natural amenities and due to encouragement with regulations for tourism sector development caused population growth and agglomeration of real estate investments in these areas. Also, this process has triggered degradation of environmental values. Paradoxically, the coastal management policies and protection mechanisms gained significance for the sustainability of natural resources. All these mechanisms have revealed the importance of understanding and assessing the vulnerability of these areas with regards to continuing trends of environmental and social change and natural resource consumption that restricts sustainability. From this point of view, this research is focused on the evaluation of vulnerability to these changes in Aegean cost side of Turkey; Izmir - Aydýn - Muðla Provinces. Assessment of vulnerability is based on the definition of IPCC that identify the vulnerability as a function of exposure, sensitivity and adaptive capacity. With a basic analytical framework, it's assumed that vulnerability will increase as the sensitivity rise and decrease as adaptive capacity improves. Another assumption is built on the concept of sensitivity. It is defined as the changing trends in social and environmental indicators (land-use change, population growth, water and energy consumption, waste generation etc.) that demonstrate pressure and threat to socio-ecological system. Furthermore, exposure component is excluded from the evaluation. Adaptive capacity index is based on normalization of social, economic, environmental, pyhsical, institutional capital indicators and arithmetic means of these components. This framework will help to understand, compare and exhibit a geographical pattern of vulnerability in the study area. |
| Keywords: | vulnerability; sensitivity; adaptive capacity; social changes; environmental changes; coast; Turkey |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa14p1668&r=env |
| By: | Glenn P. Jenkins (Queen’s University, Canada and Eastern Mediterranean University, North Cyprus); Saule Baurzhan (Eastern Mediterranean University, North Cyprus) |
| Abstract: | In this paper the feasibility of off-grid solar PV systems in Sub Sahara Africa (SSA) is analysed focusing on five major issues in the context of falling system costs: cost-effectiveness, affordability, financing, environmental impact, and poverty alleviation. Solar PV systems are found to be an extremely costly source of electricity for the rural poor in SSA. It is estimated that it will take at least 16.8 years for solar PV systems to become competitive with small diesel generators. The cost of reducing CO2 emissions through solar PV electrification is far in excess of the estimated marginal economic cost of CO2. |
| Keywords: | Solar PV, rural electrification, sub-Saharan Africa, affordability, CO2 emissions |
| JEL: | Q42 O55 |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:qed:dpaper:269&r=env |
| By: | Vladimir Akishin |
| Abstract: | Forest planning is the most important condition for sustainable, continuous, economically efficient and ecological forest use. In North-West Russia, in the Komi Republic in particular, the increasing role of forest planning is based on the obvious need to transfer from the extensive way of forest management and use of primary natural forests to intensive way of secondary reforestated forests management and use. Forest planning in these conditions should provide the required demand in timber under conditions of forest ecological and social importance protection, taking into account the existed spatial structure of the forest fund. Landscape, ecological and economical forest evaluation as a basis for forest planning allows to define secondary forest areas where efficient forestry and economically profitable activities are possible (taking in consideration the pattern structure and spatial heterogeneity of secondary forests, where most of the territory is covered with low-value stands). Forest planning in intensive forestry should be long-term, minimum for one felling rotation period. This requires to work out regional research programmes for forest activities, but allows giving the economical estimation at each stage of forest management, not only by the felling time. Forest planning allows to estimate the costs of forestry activities and to relate to the expected results that are really important for the financial and economical planning at the enterprise. Long-term forest planning guarantees not only economical efficiency, but makes the grounds for forest social and ecological values protection. Forest planning process is dealing with the necessity of various data collection and joint use. Besides forest inventory data, forest planning includes remote sensing data that can guarantee acute and updated information about a certain forest area, allows to specify spatial, age and tree species structure of a forest stand, define a landscape and ecological peculiarities of the planning object, mark high value forests and key biotopes. Modern information technologies based on GIS provide the tools for the complex analysis of information about forests and give opportunities to modeling of expected results and give an opportunity for forest planning to select the optimal way of forest management for a certain place. |
| Keywords: | Sustainable forest management; forest planning; intensive forestry; forest management and use; remote sensing and GIS; modeling of expected results. |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa14p569&r=env |
| By: | Tomo, Alda; Giva, Nicia |
| Abstract: | Mozambique benefits from environmental aid-related funds, but it is still unclear whether donor commitments render directly into projects that are copiously implemented for the purposes stated and what aid flows have actually been doing and are doing in t |
| Keywords: | environmental aid, Mozambique, external funding, development aid |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2014-102&r=env |
| By: | Fernando Perobelli; Vinicius Vale |
| Abstract: | In the recent period, there is an increase in the household income in Brazil. There is a positive impact upon consumption and welfare. On the other hand is important to verify the impact upon emissions derived from household consumption. The literature presents two approaches to analyze emissions. They are: account CO2 emissions based on the production principle and on the consumer principle. According to the consumer principle, the consumer is responsible for CO2 emissions from the production of energy, goods and services. In this case, the CO2 emissions are related to final use of goods and services even if they are imported from other countries. In order to reach the main aim of this paper we will use an input-output approach, specifically the extraction method. We use input-output matrix calibrated for 2003 and 2009 for the Brazilian economy considering 35 production sectors. We opened the household consumption into eight income categories. We closed the input-output model for household. This enables us to better understand the impact of each class of consumption upon the CO2 emissions. |
| Keywords: | EMISSIONS; INPUT-OUTPUT; |
| JEL: | Q50 C67 |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa14p1409&r=env |
| By: | Bruce A. Babcock (Center for Agricultural and Rural Development (CARD)); Zabid Iqbal |
| Abstract: | Economics models used by California, the Environmental Protection Agency, and the EU Commission all predict significant emissions from conversion of land from forest and pasture to cropland in response to increased biofuel production. The models attrib-ute all supply response not captured by increased crop yields to land use conversion on the extensive margin. The dramatic increase in agricultural commodity prices since the mid-2000s seems ideally suited to test the reliability of these models by comparing actual land use changes that have occurred since the price increase to model predictions. Country-level data from FAOSTAT were used to measure land use changes. To smooth annual variations, changes in land use were measured as the change in average use across 2004 to 2006 compared to average use across 2010 to 2012. Separate measure-ments were made of changes in land use at the extensive margin, which involves bring-ing new land into agriculture, and changes in land use at the intensive margin, which includes increased double cropping, a reduction in unharvested land, a reduction in fallow land, and a reduction in temporary or mowed pasture. Changes in yield per harvested hectare were not considered in this study. |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:ias:cpaper:14-sr109&r=env |
| By: | Tomáš Havránek (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nábreží 6, 111 01 Prague 1, Czech Republic; Czech National Bank); Zuzana Iršová (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nábreží 6, 111 01 Prague 1, Czech Republic); Karel Janda (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nábreží 6, 111 01 Prague 1, Czech Republic; University of Economics, Prague); David Zilberman (University of California, Berkeley) |
| Abstract: | We examine potential selective reporting in the literature on the social cost of carbon (SCC) by conducting a meta-analysis of 809 estimates of the SCC reported in 101 studies. Our results indicate that estimates for which the 95% confidence interval includes zero are less likely to be reported than estimates excluding negative values of the SCC, which creates an upward bias in the literature. The evidence for selective reporting is stronger for studies published in peer-reviewed journals than for unpublished papers. We show that the findings are not driven by the asymmetry of confidence intervals surrounding the SCC and are robust to controlling for various characteristics of study design and to alternative definitions of confidence intervals. Our estimates of the mean reported SCC corrected for the selective reporting bias are imprecise and range between 0 and 130 USD per ton of carbon in 2010 prices for emission year 2015. |
| Keywords: | social cost of carbon, climate policy, integrated assessment models, meta-analysis, selective reporting, publication bias |
| JEL: | C83 O12 O32 D24 |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2014_29&r=env |
| By: | Daron Acemoglu (Department of Economics, MIT and CIFAR); Ufuk Akcigit (Department of Economics, University of Pennsylvania); Douglas Hanley (Department of Economics, University of Pittsburgh); William Kerr (Harvard Business School, Harvard University) |
| Abstract: | We develop a microeconomic model of endogenous growth where clean and dirty technologies complete in production and innovation - in the sense that research can be directed to either clean or dirty technologies. If dirty technologies are more advanced to start with, the potential transition to clean technology can be difficult both because clean research must climb several rungs to catch up withdirty technology and because this gap discourages research effort directed towards clean technologies. Carbon taxes and research subsidies may nonetheless encourage production and innovation in clean technologies, though the transition will typically be slow. We characterize certain general properties of the transition path from dirty to clean technology. We then estimate the model using a combination of regression analysis on the relationship between R&D and patents, and simulated method of moments using microdata on employment, production, R&D, firm growth, entry and exit from the US energy sector. The model’s quantitative implications match a range of moments not targeted in the estimation quite well. We then characterize the optimal policy path implied by the model and our estimates. Optimal policy makes heavy use of research subsidies as well as carbon taxes. We use the model to evaluate the welfare consequences of a range of alternative policies. |
| Keywords: | carbon cycle, directed technological change, environment, innovation, optimal policy |
| JEL: | O30 O31 O33 C65 |
| Date: | 2014–12–03 |
| URL: | http://d.repec.org/n?u=RePEc:pen:papers:14-044&r=env |
| By: | Rob Aalbers; Marjon Ruijter; Kees Oosterlee (CWI) |
| Abstract: | Using a general equilibrium model in which both capital productivity and temperature are uncertain, we show that the social discount rate (SDR) will decline from 1% in 2010 to 0.6% in 2300 under the conventional, quadratic specification of the damage function, and to -2.0% under the reactive specification of the damage function. Moreover, interaction between economic and climate risks further lowers this estimate of the SDR by 0.9%. Surprisingly, the decline of the SDR never starts before 2100. We attribute this to the slow response of the earth's climate to increases in radiative forcing, thus highlighting the critical importance of properly taking into account the long-term dynamics of the climate system for the SDR. Interestingly, a substantial part of the decrease in the SDR under the reactive specification can be attributed to the presence of a term premium in long-run bonds. |
| JEL: | C61 G12 H43 Q51 Q54 |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:cpb:discus:296&r=env |
| By: | Fadim Yavuz; Ayla Bozdað |
| Abstract: | Cihanbeyli, located in Salt Lake (SL) Basin, is the largest county of Turkey in terms of its area. In total 56.105 people live in the county and its rural population is 7.005. According to data of 2011 year, Cihanbeyli's social development level is at the tenth of 31 counties of the Konya province and the county is among the least developed counties' group. SL basin is an important wetland in Turkey in terms of biodiversity conservation and international criteria. The most important economic activities in the area are agriculture, livestock and industrial salt production. All the cultivated land is reserved for dry farming and vegetable and fruit production is at negligible quantity. Lack of forested areas, existence of barren lands, insufficient water resources for the agriculture with the impact of the SL, Being one of the Turkey's low rainfall areas, transforming the domestic and industrial waste of Konya city directly to the SL's are the negative factors affecting the agriculture in the region. Depending on the threat of drought, significant productivity and quality issues are being experienced in the region's rural area. In the region agricultural production is decreasing due to drought and intense population immigration from the county's rural areas. Desertification caused by SL, furthermore aridity caused by manufacturers' improper fertilizer uses exist in agricultural areas. Range of products is limited as a result of unconscious agricultural production. Wheat, barley and sugar beet are the products commonly grown. By identifying the obstacles against the Cihanbeyli region's economy this study aims to determine sustainable strategies activate/improve agriculture as a main source of income, thereby improve economy of the region. Results are useful in i) referring agricultural activities to the areas have good physical and environmental conditions and may achieve maximum efficiency in countryside, ii) improving non-agricultural uses in the areas are unsuitable for agriculture and low efficient, iii) avoiding the construction and environmental pressures on suitable farmland. |
| Keywords: | Agricultural land suitability; sustainable economic development; Cihanbeyli; Salt Lake Basin; |
| JEL: | Q01 Q15 Q18 |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa14p1268&r=env |
| By: | Slobodan Cvetanović , Miljan Jovanović (University of Niš, Faculty of Economics) |
| Abstract: | The increasing renewable source usage and energy efficiency enhancement represent the key aims of the energy sector's development in EU countries. The purpose of their implementation is at the same time the creation of the renewable sources concept as a new development paradigm.Thus, this points to the conclusion that all the projects of renewable source usage and energy efficiency enhancement must be viewed from the perspective of the manifestation of economic, environmental and social effects.Having these facts in mind the paper considers the place of renewable sources and energy efficiency in the energy policy of the EU. The analysis is primarily based on examination of the solutions that are defined in the directives of the European Commission that deal with renewable sources and energy efficiency. |
| Keywords: | European Union, energy policy, renewable energy sources, energy efficiency |
| JEL: | Q40 Q42 Q48 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:esb:casprv:2014-105&r=env |
| By: | Renneboog, L.D.R. (Tilburg University, TILEC); Liang, H. (Tilburg University, TILEC); Ferrell, A. |
| Abstract: | In the corporate finance tradition starting with Berle & Means (1923), corporations should generally be run so as to maximize shareholder value. The agency view of corporate social responsibility (CSR) generally considers CSR as a managerial agency problem and a waste of corporate resources, since corporate insiders do good with other people’s money. We evaluate this agency view using large-scale datasets with global coverage (59 countries) on firm-level corporate engagement and compliance with respect to environmental, social, and governance issues. Using an instrumental variable approach, we document that CSR ratings are higher for companies with fewer agency problems (using standard proxies such as having lower levels of free cash flow and higher dividend payout and leverage ratios). Moreover, certain aspects of CSR (e.g., environmental, labor and social protection) are associated with increased executive pay-for-performance sensitivity and the maximization of shareholder value. |
| Keywords: | corporate social responsibility; agency problems; value enhancement; Corporate governance |
| JEL: | G30 G32 M14 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiutil:b543ca6a-e8f8-490e-9ae2-db2d8ee085c7&r=env |
| By: | Trela, Karl |
| Abstract: | Klimaanpassungspolitik wird in Deutschland auf verschiedenen politischen Ebenen betrieben. Dieses Papier untersucht auf Grundlage der ökonomischen Theorie der Anpassungspolitik Defizite dieser Politikansätze. Diese liegen in erster Linie in den folgenden Bereichen: unklare Abgrenzung von staatlicher und privater Verantwortung, Nichtberücksichtigung von Verteilungsgerechtigkeit und Versorgungssicherheit, unklare institutionelle Zuständigkeiten und mangelnde Sicherstellung der Rationalität politischer Entscheidungen. Welche dieser Defizite mit Hilfe von Entscheidungsunterstützungssystemen beseitigt werden können, hängt von prozeduralen, ergebnisbezogenen und praktischen Anforderungen an Klimaanpassungsentscheidungen ab, die in diesem Papier ebenfalls formuliert werden. Die Vorteilhaftigkeit von Entscheidungsunterstützungssystemen für politische Entscheider wird anhand eines einfachen Modells aus der Neuen Politischen Ökonomie dargestellt. |
| Abstract: | Climate change adaptation in Germany is performed on several policy levels. Based on the economic theory of adaptation policy, this paper analyses shortcomings of the German adaptation policy approach. These were found in the following areas: ambiguous distinction between justified government interventions and private autonomous adaptation responsibilities, non-consideration of both distributional fairness and security of supply, ambiguous institutional responsibilities and lacking assurance of the rationality of political decisions. Which of these shortcomings can be handled by the use of decision support systems depends on procedural, outcome-related and practical requirements. These adaptation decision requirements are also put forth in this paper. The advantageous use of decision methods for political decision makers is shown in a simple public choice model. |
| Keywords: | Klimawandel,Anpassung,Entscheidungsmethoden,climate change,adaptation,decision support methods |
| JEL: | D81 Q54 Q58 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:leiwps:134&r=env |
| By: | Slavko Božinović,Vuk Miletić (University "UNION Nikola Tesla", Belgrade) |
| Abstract: | To achieve a high level of business efficiency at construction companies is a great challenge of modern managenebt, which implies high level of performances and results compared tothe competition, and also in comparison with the best in their branch - grupation. This means showing the long-term trend of improvement, breakthroughs and innovations in all aspects of the business, the existence and application of TQM techniques and activities. Creating the product of high level quality in increasingly demanding market is a necessary precondition for construction company survival, whereby it is important to increase the pressure on control of quality cost, and business operations with continuous monitoring of changes in an environment and the demand for their products. In this context, the quality in construction business viewed from the aspect of quality of object which is manifesting in their functionality, in economical aspect, also aesthetically, energy efficiency and security. Quality is especially considering in relation to level of satisfaction of all participants in the construction - the customer, investor, contractor and end-user facilities. |
| Keywords: | Green economy concept, environmental performance, social responsibility performance, economic performance |
| JEL: | L74 M11 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:esb:casprv:2014-106&r=env |
| By: | Vladimir Pakhuchiy |
| Abstract: | The European North-East is one of the regions of Russia where have remained virgin forests. Firstly that is consequence of difference this territory from southern areas with higher degree of agricultural development. Cutting of forests for charcoal and fuel wood were fulfilled in small volumes. In spite of increase since 30th years of previous century in region volumes of the timber cuttings, all above mentioned are promoted for conservation here of large virgin forest massifs. The basic areas of the European North-East with virgin forests are located in the Komi Republic on the western slope of Ural Mountains, including in territories of National park 'Jugyd-Va', Pechoro-Ilychskiy reservation and its buffer zones. In 1995 those territories were included UNESCO in the List of the world cultural and natural heritage with name "Virgin forests Komi". The bulk of our researches were executed in Komsomolskiy forestry (lesnitchestvo) of Komi Republic. Virgin stands in the basin of river Unja basically concern to bilberry wet and fern forest type. Fir, spruce and sibirian cedar pine are the main trees of stands. Trees form the complex two-three-storied stands. The natural regeneration of the spruce and a fir domi-nate. The undergrowth of an average category of height (0,6-1,5 m) prevails. The average age of spruce is 159 - 199 years. The average growing stock is 170 - 180 m3ha-1. After analysis of definitions «virgin forest» which was done by other author and on the base of investigations we can give own conception for definitions «virgin forest massif» and «virgin stand». On the basis of the executed researches the offer is given at carrying out inventory works to consider incorporation possibility in a category of mountain forests of forests on western and parts of east slope of High Parma. It is recommended to distinguish water protective belts in borders of a catchment basin for a left-bank of upper parts of the Pechora river and for all extent of river Unja. Practical realization of these offers would promote conservation of virgin forests in southeast areas of the Komi Republic, differing by high productivity and rich species composition in comparison with northern and western territories of republic. |
| Keywords: | European North-East; Komi Republic; virgin forests; preservation of virgin forests. |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa14p680&r=env |
| By: | Kesternich, Martin; Löschel, Andreas; Römer, Daniel |
| Abstract: | In this paper, we investigate both short- and long-term impacts of financial stimuli on public goods provision when contributions are tied to individual harm-related behavior. We conduct a large-scaled field experiment to examine voluntary contributions to a carbon offsetting program during the online purchase of a bus ticket. We systematically vary the individual payoff structure by introducing different matching grants (1/3:1, 1:1, 3:1) and price rebates (r-25%, r-50%, r-75%). Our results show that price rebates are more effective than matching schemes in raising participation rates while matching grants induce higher contributions to the offsetting program. We suspect differences in the personal responsibility for the compensated emissions to drive this result. Analyzing repeated bookings, we find decreasing treatment effects for returning customers except for the case of 1:1 matching grants. The equal matching scheme is also the only intervention that increases net contributions of customers compared to the control group. |
| Keywords: | voluntary carbon offsets,randomized field experiment,public goods,rebate subsidy,matching subsidy |
| JEL: | H41 C93 D03 L92 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cawmdp:76&r=env |
| By: | Rambaud, Alexandre; Richard, Jacques |
| Abstract: | The "Triple Bottom Line" (TBL) is a major and increasingly used socio-environmental accounting framework. However academic critical examinations of this model have remained scarce and most importantly, no real alternatives have been developed. Thus this theoretical paper provides a contribution to fill this gap. Firstly from a critical analysis of the TBL approach, we argue that this one suffers severe limitations. In particular, it does not protect human and natural capitals. As an answer to these problems, we propose and discuss an other accounting framework, the "Triple Depreciation Line" (TDL), which extends the powerful tool of capitalist accounting for preserving the financial capital, the Historical Cost Accounting and its planned depreciation, to human and natural capitals. To this end, we analyse and redefine the concept of capital in an ecological accounting context. We clearly specify the hypothesis on which the TDL relies, to facilitate comparisons and dialogues with other accounting models. |
| Keywords: | Capital; Depreciation; Historical Cost Accounting; Sustainable Development; Triple Bottom Line; |
| JEL: | M14 M41 Q56 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:dau:papers:123456789/14276&r=env |
| By: | Muchapondwa, Edwin; Mukanjari, Samson |
| Abstract: | China.s importance as a major donor outside the traditional Western donors has been increasing and this has helped to bridge the funding gaps in developing countries. At the same time, South-South financial assistance still comes with less conditionality |
| Keywords: | Africa, aid, China, development finance, environmental aid, South-South co-operation |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2014-087&r=env |
| By: | Lawson, Nicholas; Spears, Dean |
| Abstract: | A growing literature documents links between early-life health and human capital, and between human capital and adult wages. Although most of this literature has focused on developed countries, economists have hypothesized that effects of early-life health on adult economic outcomes could be even greater in developing countries. This paper asks whether the early-life disease environment in India influences adult economic wages. The paper uses two measures of early-life disease environment to investigate this question: infant mortality rates and open defecation. A district-level differences-in-differences strategy is used to show that men born in district-years with lower infant mortality and better sanitation earned plausibly higher wages in their 20s and 30s. The effect estimates are applied to calculate the fiscal and welfare consequences of the disease environment, whichare considerable. In particular, eliminating open defecation would increase tax revenue by enough to offset completely a cost to the government of over \$400 per household that stops defecating in the open. A fiscally neutral elimination of open defecation in India would increase the net present value of lifetime wages by more than \$1,800 for an average male worker born today. These large economic benefits ignore any other benefits of improved health or reduced mortality. The result suggests that the disease environment could have important effects on developing-country economic outcomes. |
| Keywords: | Environmental Economics&Policies,Population Policies,Economic Theory&Research,Labor Policies,Disease Control&Prevention |
| Date: | 2014–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7121&r=env |
| By: | Amit Batabyal; Peter Nijkamp |
| Abstract: | Biodiversity prospecting refers to the exploration of the commercial value of genetic and biochemical resources. In this chapter, we study a drug producing pharmaceutical firm (PF) that searches for potentially useful chemicals made by wild organisms in a conservation area. This PF is able to assign quality levels to the wild organisms in the conservation area. Organism quality is a proxy for the potential usefulness of the chemicals in an organism. At each date, our PF must decide whether to search for a new wild organism with a certain quality or to produce the drug in question with an extant wild organism with its own quality. Our theoretical analysis leads to four results. First, we show that if our PF discards a wild organism with a certain quality at a point in time then it will never use this same organism at a subsequent point in time. Second, we show that if our PF uses a particular organism with its quality at a point in time then it will continue to produce the drug with the chemicals from this organism at all later points in time. Third, we show that there is a threshold level of organism quality and that our PF's optimal policy involves using (discarding) all organisms with quality above (below) this threshold. Finally, we study the impacts of increases in an exogenous income source and the discount factor on our PF's threshold quality. |
| Keywords: | Biodiversity Prospecting; Pharmaceutical Firm; Search; Time; Uncertainty |
| JEL: | D81 D83 I12 |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa14p901&r=env |
| By: | Zareena Begum. I (Madras School of Economics); Amanat K. Gill (Madras School of Economics) |
| Abstract: | Despite substantial conservation investments by governments and international agencies, the existence of tigers in the wild is still threatened. The main threats to the survival of wild tigers are poaching, prey depletion, and habitat degradation and fragmentation. All international trade in tiger parts has been prohibited since 1975, with China introducing a domestic ban in 1993. The domestic trade ban in China was followed by the establishment of captive tiger breeding farms in East Asia. China has considered partially lifting the trade ban to permit sales from tiger farms. This has been a matter of much debate with the proponents to the trade ban opposing it on the grounds that it result in an increase in the illegal killing of tigers and would also result in an increase in demand for tiger products, while the proponents to tiger farming favouring a supply side approach to conservation with products from tiger farms meeting all the demand. This research paper argues that it is possible to protect wild tigers by permitting the sale of products from tiger farms. India has mainly targeted tiger conservation with the establishment of tiger reserves all over the country, but this has resulted in the displacement of local communities from land that was traditionally belonged to them. Community based conservation seeks to conserve wildlife by giving local people a stake in its conservation and thus, providing an incentive to conserve it. This paper using a bio-economic model argues that giving local communities a stake in conservation of tigers like a share of tourism revenues aids conservation, as it would result in an increase in anti-poaching effort undertaken by the local communities, but this is contingent upon the additional revenue being higher than the cost of intrusion. |
| Keywords: | Community, Domestication, Parameterization, Poaching, Wildlife Management |
| JEL: | C02 C69 Q26 Q29 |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:mad:wpaper:2014-090&r=env |
| By: | Thomas P. Lyon (Ross School of Business, University of Michigan); John W. Maxwell (Department of Business Economics and Public Policy, Indiana University Kelley School of Business) |
| Abstract: | Corporate self-regulation is a crucial non-market strategy, and has generally been understood as a response to regulatory threats. However, self-regulation can also influence the nature of regulatory threats, especially when firms have private information about their costs of abatement. We study a setting where regulation can potentially be preempted, providing a public good for the whole industry, but where regulators have flexibility in how they enforce regulatory policies, which can provide benefits to particular firms. Strategic management must balance these concerns. We show that firm self-regulatory actions may alter both the form and likelihood of regulation. As a result, firm decisions shape rather than simply respond to the regulatory threat. We characterize when firms are willing to signal their type through substantial self-regulation, and when they prefer to stay in step with the rest of the industry through modest levels of self-regulation. |
| Keywords: | Self-Regulation, Regulatory Flexibility, Asymmetric Information, Private Governance |
| JEL: | D83 L31 M14 Q56 |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:iuk:wpaper:2014-11&r=env |
| By: | Vasileios Angelis; Athanasios Angelis-Dimakis; Katerina Dimaki |
| Abstract: | Regional development has been in the centre of interest among both academics but also decision makers in the central and local governments of many European countries. Identifying the key problems that regions face and considering how these findings could be effectively used as a basis for planning their development process are essential in order to improve the conditions in the European Union regions. For a long period of time a country's or a region's development has been synonymous with its economic growth. Over the last years, however, economies and societies have been undergoing dramatic changes. These changes have led to the concept of sustainable development, which refers to the ability of our societies to meet the needs of the present without sacrificing the ability of future generations to meet their own needs. Measuring sustainable development means going beyond a purely economic description of human activities; requires integration of economic, social and environmental concerns. New techniques are required in order to benchmark performance, highlight leaders and laggards on various aspects of development and facilitate efforts to identify best practices. Furthermore, new tools have to be designed so as to make sustainability decision-making more objective, systematic and rigorous. The growth or decline of a country or region depends on its power to pull and retain both business and the right blend of people to run them. Working in this context, we have so far defined a variable which is called the image of a region and quantifies this pulling power. The region's image is a function of a multitude of factors physical, economic, social and environmental, some common for all potential movers and some specific for particular groups of them and expresses its present state of development and future prospects. The paper examines a number of south European countries and focuses on their NUTS 2 level regions. Its objective is to: * Estimate the Basic Image values of those regions. * Group those regions into different clusters on the basis of the values of the various factors used to define their respective Basic Images. * Present and discuss the results. |
| Keywords: | Development; Region?s Image; Cluster Analysis; European Regions |
| JEL: | C02 C65 Q01 R58 |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa14p647&r=env |
| By: | Urszula Zimoch; Hannu Törmä; Jouko Kinnunen; Mikko Rautiainen |
| Abstract: | Regional economic impacts of fishing and hunting in Finland A state enterprise, Metsähallitus, administers state-owned land and water areas in Finland covering approximately 12 million hectares. One of the official administrative duties of Metsähallitus is to provide hunting and fishing opportunities for citizens. In 2013, more than 81,000 hunting licenses and 71,000 fishing licenses were granted. As indicated in the study, during one season, Metsähallitus hunting and fishing customers spent over EUR 33 million in the regions of licenses destinations. This paper indicates that hunters and fishers in Finland travel extensively and support the regional economy via their expenditures. In the summer and autumn of 2013, Metsähallitus carried out a survey that provided rich and up-to-date information that could be used for quantitative and qualitative research. For modelling purposes the private expenditures of hunters and fishers were grouped into trade, accommodation, restaurants, local public transport, and entertainment. However, the study also analysed these expenditures in more detail, presenting the personal expenditures per trip, per day of a trip, and per license. Moreover, the location of the expenditures was disaggregated into the region of license destination, the region of residence, and "on the way" between those two. For example, an average grouse hunter with a short-time (1?7 days) license in 2013 spent around EUR 150 per hunting trip within his or her region of residence, and more than EUR 440 per trip if the hunting area was located outside the region of residence. RegFin, a comparative-static regional Computable General Equilibrium (CGE) model was used in this study to calculate the wider economic impacts at a regional level, as well as to serve as an engine for an Excel-based assessment tool. The assessment of the regional economic impacts focused on basic economic indicators such as regional gross domestic product (GDP), household consumption, and employment. The results of the study indicate that hunting and fishing activities have a positive impact on regional economies. Just considering license destination regions in 2013, hunting and fishing on state-owned land increased regional GDP by EUR 6.4 million, created 86.2 person working years, and produced household consumption of EUR 36.6 million. Among the many conclusions, it was found that investments in regional services linked to hunting and fishing activities would increase the regional economic impacts of Metsähallitus customers. |
| Keywords: | R13 General Equilibrium Analysis of Regional Economies; C68 Computable General Equilibrium Models; Q570 Ecological Economics: Ecosystem Services |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa14p1317&r=env |