nep-env New Economics Papers
on Environmental Economics
Issue of 2005‒09‒11
fourteen papers chosen by
Francisco S.Ramos
Federal University of Pernambuco

  1. Regulatory Compliance in Lake Victoria Fisheries By Eggert, Håkan; Lokina, Razack B
  2. Conservation Reserve Program in the Presence of a Working Land Alternative: Implications for Environmental Quality, Program Participation, and Income Transfer, The By Feng, Hongli; Kling, Catherine L.; Kurkalova, Lyubov A.; Secchi, Silvia; Gassman, Philip W.
  3. ISO 14001 Certification and Environmental Performance in Quebec's Pulp and Paper Industry By Barla, Philippe
  4. Quand la réglementation environmentale profite aux pollueurs. Survol des fondements théoriques de l'hypothèse de Porter By Ambec, Stefan; Barla, Philippe
  5. Baseline-and-Credit Emission Permit Trading: Experimental Evidence Under Variable Output Capacity By Neil J. Buckley, R. Andrew Muller, and Stuart Mestelman
  6. Baseline-and-Credit Style Emission Trading Mechanisms: An Experimental Investigation of Economic Inefficiency By Neil J. Buckley, R. Andrew Muller, and Stuart Mestelman
  7. Vehicle Choices, Miles Driven, and Pollution Policies By Ye Feng; Don Fullerton; Li Gan
  8. Saving the Seas: The Economic Justification for Marine Reserves By R. Quentin Grafton; Phan Van Ha; Tom Kompas
  9. Uncertainty and the Active Adaptive Management of Marine Reserves By R. Quentin Grafton; Tom Kompas
  10. The Economic Payoffs from Marine Reserves: Resource Rents in a Stochastic Environment By R. Quentin Grafton; Tom Kompas; Phan Van Ha
  11. Cod Today and None Tomorrow: The Economic Value of a Marine Reserve By R. Quentin Grafton; Tom Kompas; Phan Van Ha
  12. Marine reserves. A bio-economic model with asymmetric density dependent migration By Anders Skonhoft; Claire Armstrong
  13. CONVERGENCE IN CARBON EMISSIONS PER CAPITA By Alison Stegman
  14. CONVERGENCE AND PER CAPITA CARBON EMISSIONS By Warwick J. McKibbin; Alison Stegman

  1. By: Eggert, Håkan (Department of Economics, School of Economics and Commercial Law, Göteborg University); Lokina, Razack B (National Environment Management Council (NEMC))
    Abstract: This paper analyzes the causes for regulatory compliance using traditional deterrence variables and potential moral and social variables. We use self-reported data from Tanzanian artisanal fishers in Lake Victoria. The results indicate that fishers adjust their violation rates with respect to changes in the probability of detection and punishment, but they also react to legitimacy and social variables. A small group of persistent violators react neither to normative aspects nor to traditional deterrence variables, but systematically violate the regulation and use bribes to avoid punishment. <p>
    Keywords: compliance; fishery; Lake Victoria; legitimacy; normative; deterrence
    JEL: K42 L51 Q22
    Date: 2005–08–31
    URL: http://d.repec.org/n?u=RePEc:hhs:gunwpe:0175&r=env
  2. By: Feng, Hongli; Kling, Catherine L.; Kurkalova, Lyubov A.; Secchi, Silvia; Gassman, Philip W.
    Abstract: The United States has invested large sums of resources in multiple conservation programs for agriculture over the past century. In this paper we focus on the impacts of program interactions. Specifically, using an integrated economic and bio-physical modeling framework, we consider the impacts of the presence of working land programs on a land retirement for an important agricultural region—the Upper Mississippi River Basin (UMRB). Compared to a land retirement only program, we find that the presence of a working land program for conservation tillage results in significantly lower predicted signups for land retirement at a given rental rate. We also find that the presence of both a large working land and land retirement program can result in more environmental benefits and income transfers than a land retirement only program can achieve.
    Keywords: Conservation Reserve Program, conservation tillage, environmental quality, income transfer, working land programs.
    Date: 2005–09–01
    URL: http://d.repec.org/n?u=RePEc:isu:genres:12411&r=env
  3. By: Barla, Philippe
    Abstract: This paper tests whether adopting the international norm ISO 14001 significantly impacts environmental performance in Quebec's pulp and paper industry. Using monthly data collected from 37 plants between 1997 and 2003, we show that: i) ISO certification does not lead to a reduction in total suspended solid emissions or the total quantity of rejected process water; ii) discharge of biological oxygen demand appears to be significantly lower in the first year following certification; iii) this latter impact does not appear to last beyond the one-year window. We further show that, contrary to the group of plants that did not adopt the ISO norm, the adopting plants did not experience a significant negative trend in emissions over our sample period.
    Keywords: Environmental Management Systems, ISO 14001, Environmental Performance
    JEL: Q50 Q52 Q58
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:lvl:laeccr:0503&r=env
  4. By: Ambec, Stefan; Barla, Philippe
    Abstract: Cet article présente de manière non technique certains des fondements théoriques possibles de l'hypothèse de Porter selon laquelle, des réglementations environmentales strictes peuvent améliorer le profit des industries qui y sont soumises. Après une brève présentation de l'hypothèse, les arguments basés sur l'existence d'imperfections au sein de l'entreprise sont passés en revue. Les imperfections du marché susceptibles d'éventuellement justifier l'hypothèse de Porter sont ensuite discutées. Les principales conclusions de ce survol sont: i) l'hypothèse de Porter requiert l'interacton de l'externalité environmentale avec au moins une autre souce de distorsions, ii) le type d'intervention publique qui peut aboutir à un effet à la Porter dépend de la nature des distorsions qui interagissent. L'atteinte de l'optimum peut exiger l'usage de plusieurs instruments, iii) l'exploration empirique de l'hypothèse de Porter doit, pour être valide, autoriser la présence de ces multiples distorsions.
    Keywords: Réglementation environmentale, hypothèse de Porter, compétitivité
    JEL: Q50 Q52 Q55
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:lvl:laeccr:0504&r=env
  5. By: Neil J. Buckley, R. Andrew Muller, and Stuart Mestelman
    Abstract: Two approaches to emissions trading are cap-and-trade, in which an aggregate cap on emissions is distributed in the form of allowance permits, and baseline-and-credit, in which firms earn emission reduction credits for emissions below their baselines. Theoretical considerations suggest the long-run equilibria of the two plans will differ if baselines are proportional to output, because a variable baseline is equivalent to an output subsidy. As a progressive step towards testing the full long-run model, this paper reports on a laboratory experiment designed to test the prediction under fixed emission rates and variable output capacity. A computerized environment has been created in which sub jects representing firms choose output capacities under fixed emission technology and participate in markets for emission rights and for output. Demand for output is simulated. All decisions are tracked through a double-entry bookkeeping system. Our evidence supports the theoretical prediction that aggregate output and emissions are inefficiently high under a baseline-and-credit trading plan compared to a corresponding cap-and-trade plan.
    JEL: C24 D21 O17
    Date: 2005–05
    URL: http://d.repec.org/n?u=RePEc:mcm:deptwp:2005-03&r=env
  6. By: Neil J. Buckley, R. Andrew Muller, and Stuart Mestelman
    Abstract: Two approaches to emissions trading are cap-and-trade, in which an aggregate cap on emissions is distributed in the form of allowance permits, and baseline-and-credit, in which firms earn emission reduction credits for emissions below their baselines. Theoretical considerations suggest the long-run equilibria of the two plans will differ if baselines are proportional to output, because a variable baseline is equivalent to an output subsidy. This paper reports on a laboratory experiment designed to test the prediction in a laboratory environ- ment in which sub jects representing firms choose emission technologies and output capacities. A computerized environment has been created in which sub jects participate in markets for emission rights and for output. Demand for output is simulated. All decisions are tracked through a double-entry bookkeeping system. Our evidence supports the theoretical prediction that aggregate output and emissions are in- efficiently high under a baseline-and-credit trading plan compared to a corresponding cap-and-trade plan.
    JEL: C92 L50 Q58
    Date: 2005–05
    URL: http://d.repec.org/n?u=RePEc:mcm:deptwp:2005-04&r=env
  7. By: Ye Feng; Don Fullerton; Li Gan
    Abstract: Mobile sources contribute large percentages of each pollutant, but technology is not yet available to measure and tax emissions from each vehicle. We build a behavioral model of household choices about vehicles and miles traveled. The ideal-but-unavailable emissions tax would encourage drivers to abate emissions through many behaviors, some of which involve market transactions that can be observed for feasible market incentives (such as a gas tax, subsidy to new cars, or tax by vehicle type). Our model can calculate behavioral effects of each such price and thus calculate car choices, miles, and emissions. A nested logit structure is used to model discrete choices among different vehicle bundles. We also consider continuous choices of miles driven and the age of each vehicle. We propose a consistent estimation method for both discrete and continuous demands in one step, to capture the interactive effects of simultaneous decisions. Results are compared with those of the traditional sequential estimation procedure.
    JEL: D12 H23 Q58
    Date: 2005–08
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:11553&r=env
  8. By: R. Quentin Grafton (The Australian National University); Phan Van Ha (The Australian National University); Tom Kompas (The Australian National University)
    Abstract: We contribute to the understanding of marine reserves and the management of renewable resources with uncertainty. We show that the key benefit of reserves is that they increase resilience, or the speed it takes a population to return to a former state following a negative shock. Resilience can also increase resource rents even with optimal harvesting. We contradict the accepted wisdom that reserves have no value if harvesting is optimal, reserves and optimal output controls are equivalent, reserves have value only with overexploited populations and that reserves must be large to offer benefits to fishers.
    Keywords: Marine Reserves, Uncertainty
    JEL: Q20 D81 C61
    Date: 2004–03
    URL: http://d.repec.org/n?u=RePEc:eab:microe:578&r=env
  9. By: R. Quentin Grafton (The Australian National University); Tom Kompas (The Australian National University)
    Abstract: Unpredictable environmental fluctuations are a major problem in fisheries. To mitigate these uncertainties, reserves are advocated to help ensure population persistence, reduce population and harvest variance and to provide a ‘hedge’ against management failures. Using recent insights from the modelling of marine reserves that indicate that reserves can generate a ‘win-win’ in terms of economic payoffs and ecological benefits, we propose a six-step process for managing reserves with uncertainty and argue in favour of initially establishing less than desirable reserve sizes where stakeholder resistance to reserves may be preventing their implementation.
    Keywords: marine reserves,uncertainty, adaptive management
    JEL: Q20 D81 C61
    Date: 2004–04
    URL: http://d.repec.org/n?u=RePEc:eab:microe:579&r=env
  10. By: R. Quentin Grafton (The Australian National University); Tom Kompas (The Australian National University); Phan Van Ha (The Australian National University)
    Abstract: The paper analyses the economic payoffs from marine reserves using a stochastic optimal control model. The results show that even if the reserve and harvested populations face the same negative shocks, harvesting is optimal, the population is persistent and with no uncertainty over current stock size, a reserve can increase resource rents. Using actual fishery data we demonstrate that the payoffs from a reserve, and also optimum reserve size, increase the larger is the magnitude of the negative shock, the greater its frequency, and the larger its relative impact on the harvested population.
    Keywords: marine reserves, resource rents, stochastic shocks, optimal control
    JEL: Q20 D81 C61
    Date: 2005–03
    URL: http://d.repec.org/n?u=RePEc:eab:microe:580&r=env
  11. By: R. Quentin Grafton (The Australian National University); Tom Kompas (The Australian National University); Phan Van Ha (The Australian National University)
    Abstract: Using data from what was once one of the world’s largest capture fisheries the economic value of a marine reserve is calculated using a stochastic optimal control model with a jump diffusion process. The results show that with a stochastic environment an optimal-sized marine reserve can generate a triple payoff that (a), raises the resource rent even when harvesting is ‘optimal’, (b) decreases the recovery time for the biomass to return to its former state and smooths fishers’ harvests and resource rents, and (c), lowers the chance of a catastrophic collapse following a negative shock.
    Keywords: Marine reserves, Stochastic control, Fisheries
    JEL: C61 Q22
    Date: 2005–07
    URL: http://d.repec.org/n?u=RePEc:eab:microe:616&r=env
  12. By: Anders Skonhoft (Department of Economics, Norwegian University of Science and Technology); Claire Armstrong (Norwegian College of Fishery Science, University of Tromsø)
    Abstract: A static bioeconomic model of a marine reserve allowing asymmetric density dependent migration between the reserve and the fishable area is introduced. This opens for habitat or ecosystem differences allowing different fish densities within and outside a reserve, not described in earlier studies. Four management scenarios are studied; a) maximum harvest, b) maximum current profit, c) open access and d) maximum sustainable yield (MSY) in the reserve. These are all analysed within the Induced Sustainable Yield Function (ISYF), giving the relationship between the fish abundance inside the reserve and the harvesting taking place outside. A numerical analysis shows that management focused on ensuring MSY within the reserve under the assumption of symmetric migration may be negative from an economic point of view, when the area outside the reserve is detrimental compared to the reserve. Furthermore, choice of management option may also have negative consequences for long run resource use if it is incorrectly assumed that density dependent migration is symmetric. The analysis also shows that the optimal area to close, either a more or a less attractive ecosystem for the resource in question, may differ depending on the management goal.
    Keywords: bioeconomics; marine reserves; migration; management
    Date: 2005–05–15
    URL: http://d.repec.org/n?u=RePEc:nst:samfok:5005&r=env
  13. By: Alison Stegman
    Abstract: Convergence in cross country per capita carbon emission rates is an important concept the climate change debate. This paper provides an empirical analysis of emissions per capita convergence. This analysis is crucial to the assessment of projection models that generate convergence in emission per capita rates and to the assessment of policy proposals that advocate imposing convergence in emissions per capita. The main conclusions in this paper are based on a details examination of the intra-distributional dynamics of cross country emissions per capita over time. Stochastic kernel estimation of these dynamics suggests that the cross country distribution of emissions per capita is characterised by persistence. There is little evidence that emission per capita rates across countries are converging in an absolute sense. Projection models that generate convergence in emissions per capita are therefore inconsistent with empirical behaviour. Policies that impose convergence in emissions per capita are likely to generate large re-distributional impacts.
    JEL: C10 C14 Q54
    Date: 2005–05
    URL: http://d.repec.org/n?u=RePEc:pas:camaaa:2005-08&r=env
  14. By: Warwick J. McKibbin; Alison Stegman
    Abstract: The notion of "convergence" of economic variables across countries is a useful concept and in the case of income per capita, a well studied area. If there is empirical evidence of convergence of some economic variables across countries, then our ability to prdict the future (or at least difference between countries in the future) is enhanced. It is common in long run projections of climate change to base these projections on some notion of full or partial convergence whether in incomes per capita, teachnologies, energy intensities, emissions intensities of energy or per capita carbon emissions. But what is the empirical basis of these assumptions? This paper explores the historical experience of a range of variables related to climate change projections with the goal of examining if there is any evidence historically of convergence. The focus of the paper is on per capita carbon emissions from fossil fuel use because this is the basis of many projections as well as a variety of policy proposals. We also present evidence on GDP per capita, energy intensity of output and the emissions intensity o energy supply. We find strong evidence that the wide variety of assumptions about "convergence" commonly used in emissions projections are not based on empirically observed phenomena.
    JEL: C50 C68 F01 F43 Q54 Q56
    Date: 2005–05
    URL: http://d.repec.org/n?u=RePEc:pas:camaaa:2005-10&r=env

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