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on Environmental Economics |
| By: | Joerg Breitscheidel; Hans Gersbach |
| Abstract: | We explore the design of self-financing tax/subsidy mechanisms to solve hold-up problems in environmental regulation. Under Cournot competition, announcing the subsidy rate seems to be preferable to announcing the tax rate. Moreover, for constant marginal damage the hold-up problem can always be solved by setting subsidies. Under Bertrand competition, only announcing the tax rate can induce at least one firm to invest. We suggest that feebate systems in the automotive sector should be designed as self-financing tax/subsidy mechanisms. |
| Keywords: | hold-up problems, environmental regulation, taxes and subsidies, self-financing mechanisms, emission control |
| JEL: | D43 D62 L50 Q28 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_1528&r=env |
| By: | Cremer, Helmuth; De Donder, Philippe; Gahvari, Firouz |
| Abstract: | This paper presents a political economy model that explains the low rate of emission taxes in the U.S., as well as the fact that neither Democrats nor Republicans propose to increase them. The voters differ according to their wage and capital incomes which are assumed to have a bivariate lognormal distribution. They vote over the emission tax rate and a budgetary rule that specifies how to redistribute the tax proceeds. The political competition is modeled à la Roemer (2001) where the two parties care for the policies they propose as well as the probability of winning; the equilibrium solution concept is the Party Unanimity Nash Equilibrium (PUNE). We calibrate the model using U.S. data and compute the PUNEs numerically. Two main results emerge. All "viable" PUNEs entail subsidies on emissions (as opposed to taxes). This indicates the importance of distributional concerns in garnering political support for environmental policies. Second, parties always propose an interior value for the budgetary rule even though all citizens prefer extreme values. This illustrates the emergence of political compromise to attract voters. |
| Keywords: | distributional concerns; Emission taxes; political competition; political compromise; PUNE |
| JEL: | D72 H23 |
| Date: | 2005–09 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:5228&r=env |
| By: | Debaere, Peter |
| Abstract: | It is a well-established theoretical result that the trade policy of a large country can directly affect its own and other countries' welfare by affecting international goods prices. However, there exist very few empirical studies that analyze the effect of trade policy on international prices. With detailed data on unit values and tariffs, I show how policy actions in Europe disrupted the global shrimp market in a non-negligible way and set the stage for the current anti-dumping case in the US. The loss of Thailand's preferential trade status in Europe and the international differences in food safety standards during the antibiotics crisis, have shifted esp. Thai, Vietnamese and Chinese shrimp exports away from Europe towards the US in the late 1990s and early 2000s. I document how these shifting markets have decreased US prices for shrimp significantly compared to those in Europe. |
| Keywords: | international trade |
| JEL: | F1 |
| Date: | 2005–09 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:5254&r=env |
| By: | Azadi, H.; Shahvali, M.; Berg, J. van den; Faghih, N. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University) |
| Abstract: | While fuzzy specialists usually use homogeneous experts’ knowledge to construct fuzzy models, it is much more difficult to deal with knowledge elicited from a heterogeneous group of experts. This issue especially holds in the area of the sustainable rangeland management. One way to deal with the diversity of opinions is to develop a fuzzy system for all experts and to combine all these so-called primary systems into one multi-fuzzy model. To derive each of the primary fuzzy systems using the knowledge of a group of administrative experts, several semi-structured interviews were held in three different areas of the Fars province in Southwest Iran. In order to find the final output of the multi-fuzzy model, we applied different ‘voting’ methods. The first method simply uses the arithmetic average of the primary outputs as the final output of the multifuzzy model. This final output represents an estimation of the Right Rate of Stocking. We also propose other (un)supervised voting methods. Most importantly, by harmonizing the primary outputs such that outliers get less emphasis, we introduce an unsupervised voting method calculating a weighted estimate of the Right Rate of Stocking. This harmonizing method is expected to provide a new useful tool for policymakers in order to deal with heterogenity in experts’ opinions: it is especially useful in cases where little field data is available and one is forced to rely on experts’ knowledge only. By constructing the three fuzzy models based on the elicitation of heterogeneous experts’ knowledge, our study shows the multidimensional vaguenesses that exist in sustainable rangeland management. Finally, by comparing the final Right Rate of Stocking with its medium range, this study proves the existence of overgrazing in pastures of the three regions of the Fars province in Southwest Iran. |
| Keywords: | sustainable rangeland management;carrying capacity;multi-fuzzy model;heterogeneous; |
| Date: | 2005–04–03 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:eureri:30002103&r=env |
| By: | Bloemhof-Ruwaard, J.M.; Nunen, J.A.E.E. van (Erasmus Research Institute of Management (ERIM), RSM Erasmus University) |
| Abstract: | Sustainable supply chain management (SSCM) is a rather new phenomenon in the Operations Management/Operations Research literature. In the design of Sustainable Supply Chains the increase of transparency across the chain is essential and can be obtained through identification and traceability. Sustainable production often means a change in resource-areas and modes of transportation. Investment in sustainability implies innovations in supply chain management with accompanying costs and profits. We present a framework based on product and process innovations that provides insights in the relevant research questions for integrating Environmental Management and SCM. The framework is applied using the literature and practical case studies in this area. |
| Keywords: | supply chain management;closed loop;environment;government regulations;sustainability; |
| Date: | 2005–05–18 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:eureri:30006909&r=env |
| By: | Anders Skonhoft (Department of Economics, Norwegian University of Science and Technology) |
| Abstract: | After coming close to extinction, the grey wolf (Canis lupus) has re-colonized Scandinavia during the last two decades. The current population numbers some 100–120 individuals, and is distributed in small packs along the Swedish–Norwegian border. However, with wolf re-colonization, several conflicts have arisen. One conflict is due to wolf predation on livestock, especially sheep and reindeer. Another is predation on wild ungulates. As the wolves have shown a strong preference for moose (Alces alces) in this respect, a smaller moose population is available for game hunting. The cost of increased moose predation by wolves is examined using a two-step process. First, we analyse the costs to landowners, comprising the loss of animals potentially available for hunting less the reduction in browsing damage associated with a smaller moose population. Second, we examine the problem from a broader point of view, where costs external to landowners and local communities are included. By far the most important cost here is damage related to collisions between moose and motor vehicles. |
| Date: | 2005–08–05 |
| URL: | http://d.repec.org/n?u=RePEc:nst:samfok:5505&r=env |
| By: | M. del Mar Rubio Varas |
| Abstract: | The paper contrasts empirically the results of alternative methods for estimating the value and the depreciation of mineral resources. The historical data of Mexico and Venezuela, covering the period 1920s-1980s, is used to contrast the results of several methods. These are the present value, the net price method, the user cost method and the imputed income method. The paper establishes that the net price and the user cost are not competing methods as such, but alternative adjustments to different scenarios of closed and open economies. The results prove that the biases of the methods, as commonly described in the theoretical literature, only hold under the most restricted scenario of constant rents over time. It is argued that the difference between what is expected to happen and what actually did happen is for the most part due to a missing variable, namely technological change. This is an important caveat to the recommendations made based on these models. |
| Keywords: | Value, depreciation, mineral assets, net price, user costs, imputed income, environmental accounts |
| JEL: | Q51 F18 N56 |
| Date: | 2005–05 |
| URL: | http://d.repec.org/n?u=RePEc:upf:upfgen:867&r=env |
| By: | M. del Mar Rubio Varas; Mauricio Folchi |
| Abstract: | In absence of comparable macroeconomic indicators for most of the Latin American economies beyond the 1930s, this paper presents an estimate of the apparent consumption per head of coal and petroleum for 25 countries of Latin American and the Caribbean for the year 1925, doubling the number of countries for which energy consumption estimates were previously available. Energy consumption is then used as an indicator of economic modernisation. As a result, the paper provides the basis for a quantitative comparative analysis of modernisation performance beyond the few countries for which historical national accounts are available in Latin America. |
| Keywords: | Energy consumption, modernisation, Latin America, petroleum, coal |
| JEL: | N16 N76 Q43 O13 |
| Date: | 2005–05 |
| URL: | http://d.repec.org/n?u=RePEc:upf:upfgen:868&r=env |
| By: | Suzi Kerr (Motu Economic & Public Policy Research); Emma Brunton (Motu Economic & Public Policy Research); Ralph Chapman (Maarama Consulting Ltd) |
| Abstract: | Carbon sequestration in plantation forests provides the main means by which New Zealand will meet its international climate change obligations in the first commitment period of the Kyoto Protocol (2008–2012). However, without active policy, forests are unlikely to contribute as much in subsequent commitment periods. This research paper provides the background for examining policy measures for encouraging carbon sequestration in plantation forests in New Zealand. Part I focuses on providing factual information and positive analysis of: key domestic and international regulations; information on New Zealand forests, the forestry industry and forest profitability; discussion of land-use decision making, including the central question of what influences conversion of farmland to forestry; and forest carbon ecology. Part II moves on to normative analysis of policy design. It discusses how including considerations of the value of carbon sequestration and storage changes optimal land-use behaviour, and outlines key issues that need to be addressed when developing a policy to encourage sequestration and storage in a pragmatic way. Finally, the paper identifies a number of key areas where we need more information before we can make well- informed choices about policy design. Future work will endeavour to identify and evaluate policies that would effectively encourage sequestration. |
| Keywords: | climate, forest, carbon sequestration, policy, New Zealand, Kyoto |
| JEL: | Q25 Q28 |
| Date: | 2005–09–12 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpot:0509009&r=env |
| By: | Isabelle Sin (Motu Economic & Public Policy Research); Emma Brunton (Motu Economic & Public Policy Research); Joanna Hendy (Motu Economic & Public Policy Research); Suzi Kerr (Motu Economic & Public Policy Research) |
| Abstract: | Hendy and Kerr (2005b) find that an emissions charge on agricultural methane and nitrous oxide of $25 per tonne of carbon dioxide (CO2) equivalent would be likely to reduce New Zealand’s net land-use related emissions for commitment period one in the order of 3%, with full accounting. The costs per farmer and as a percentage of profit would be very high. This paper considers the regional impacts of such a policy in New Zealand by allocating the emission charge across space according to the location of animals. We then combine our emissions charge information with data on the socio-economic characteristics of the affected areas. Obviously rural areas are heavily affected. In many respects, for example median income, ethnic mix, and percentage of working people with a university degree, the rural areas most affected have very similar socio-economic characteristics to other parts of rural New Zealand. Only in two ways do they appear to differ. Our findings indicate that areas with high emission costs tend to have high employment rates, but that they also have a disproportionately high number of unqualified people. |
| Keywords: | climate change, land use, social impacts, methane, nitrous oxide, dairy, sheep, beef, distribution of costs, regional |
| JEL: | Q25 Q28 R14 |
| Date: | 2005–09–12 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpot:0509010&r=env |
| By: | Arthur Grimes (Motu Economic & Public Policy Research); Suzi Kerr (Motu Economic & Public Policy Research); Andrew Aitken (Motu Economic & Public Policy Research) |
| Abstract: | This report was prepared for the Centre for Housing Research Aotearoa New Zealand (CHRANZ). The aim of this study is to identify a set of housing research projects addressing two related topics. First, the impact of economic, social and environmental changes on housing in New Zealand's non-metropolitan regions; and second, the economic, social and environmental impacts of the New Zealand housing market. Identification of these projects is designed to help CHRANZ in developing and prioritising its research agenda pertaining to policy-relevant housing research within New Zealand. By doing so, we aim to outline coherent programmes of research that develop a comprehensive body of knowledge about the housing sector and its interactions with other key elements of society. The study suggests a set of research questions leading to coherent programmes of research, rather than to answer the research questions. We concentrate on posing questions that are of policy concern. Some are matters of current official policy concern. Others relate to issues that non-official sources consider should be of policy concern or which we judge may become of official concern in future years. Thus our analysis is informed by current policy priorities, but seeks to take a strategic look also at forthcoming priorities that may emerge over the next five years. |
| Keywords: | Housing markets, Housing policy |
| JEL: | R21 R31 |
| Date: | 2005–09–12 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpur:0509012&r=env |
| By: | Esther Duflo (Massachusetts Institute of Technology); Rohini Pande (Economic Growth Center, Yale University) |
| Abstract: | The construction of large dams is one of the most costly and controversial forms of public infrastructure investment in developing countries, but little is known about their impact. This paper studies the productivity and distributional effects of large dams in India. To account for endogenous placement of dams we use GIS data and the fact that river gradient affects a district's suitability for dams to provide instrumental variable estimates of their impact. We find that, in a district where a dam is built, agricultural production does not increase but poverty does. In contrast, districts located downstream from the dam benefit from increased irrigation and see agricultural production increase and poverty fall. Overall, our estimates suggest that large dam construction in India is a marginally cost-effective investment with significant distributional implications, and has, in aggregate, increased poverty. |
| Keywords: | Dams, Development Planning, Program Evalluation, India |
| JEL: | O21 O12 H43 H23 |
| Date: | 2005–08 |
| URL: | http://d.repec.org/n?u=RePEc:egc:wpaper:923&r=env |
| By: | CHAKRAVORTY, Ujjayant; MAGNE, Bertrand; MOREAUX, Michel |
| JEL: | Q12 Q32 Q41 |
| Date: | 2005–09 |
| URL: | http://d.repec.org/n?u=RePEc:ide:wpaper:1165&r=env |