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on Environmental Economics |
| By: | Grubb, M.; Newbery, N. |
| Abstract: | In this paper, which forms a chapter in the forthcoming Book “Delivering a Low Carbon Electricity System: Technologies, Economics and Policy”2, Grubb and Newbery examine how carbon for electricity generation should be priced. They begin by suggesting that it is not clear what the correct price of carbon is, but that it spans the whole range of economically plausible prices. They then go on to discuss the theoretical merits of taxes versus quotas, concluding that theoretically a stable tax would best reflect the true social cost of emissions, which should not change with market conditions. They then go to evaluate the EU Emissions Trading Scheme where allowances for the emission of CO2 are traded (EUAs). The price signals offered by the scheme in its first trading period have been very unsatisfactory with high variability and the price trending down towards very low levels as it has become clear that governments were much too generous in their initial allocation of quotas. What is needed is a stable investment environment for low carbon generation investments. They discuss a number of policy options to achieve this: long period commitments on quotas; allowing unconstrained banking and borrowing of EUAs over multiple periods; long term price declarations to be used in allocation auctions; government issued contracts for differences on the future carbon price; or simply to issue low-carbon electricity contracts. The authors conclude with a discussion of the scope for international agreements on carbon emissions reduction. They conclude that imperfect though it is the EU ETS is a good place to start to link up emerging trading regimes, and that quota systems have more of a chance of commanding international agreement at least initially. However any international climate change agreement will be difficult to establish. Key words: Carbon price, electricity, taxes vs quotas, emissions trading. |
| JEL: | Q54 Q58 Q55 |
| Date: | 2007–10 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:0751&r=env |
| By: | Robert Stavins; Judson Jaffe; Todd Schatzki |
| Abstract: | California's Global Warming Solutions Act of 2006 limits California's greenhouse gas (GHG) emissions in 2020 to their 1990 level. Global climate change is a pressing environmental problem, and the best possible public policies will be required to address it. Therefore, analyses of prospective policies must themselves be of high quality, so that policymakers can reasonably rely on them when making the critical decisions they inevitably will face. <br><br>In 2006, three studies were released indicating that California can meet its 2020 target at no net economic cost - raising questions about whether opportunities truly exist to substantially reduce emissions at no cost, or whether studies reaching such conclusions may simply severely underestimate costs. This paper provides an evaluation of these three California studies.<br><br>We find that although opportunities may exist for some no-cost emission reductions, these California studies substantially underestimate the cost of meeting California's 2020 target. The studies underestimate costs by omitting important components of the costs of emission reduction efforts, and by overestimating offsetting savings that some of those efforts yield through improved energy efficiency. In some cases, the studies focus on the costs of particular actions to reduce emissions, but fail to consider the effectiveness and costs of policies that would be necessary to bring about such actions. While quantifying the full extent of the resulting cost underestimation is beyond the scope of our study, the underestimation is clearly economically significant. A few of the identified flaws individually lead to underestimation of annual costs on the order of billions of dollars. Hence, these studies do not offer reliable estimates of the cost of meeting California's 2020 target. Better analyses are needed to inform policymakers.<br><br>While the Global Warming Solutions Act of 2006 sets a 2020 emissions target, critical policy design decisions remain to be made that will fundamentally affect the cost of California's climate policy. For example, policymakers must determine emission targets for the years before and after 2020, the emission sources that will be regulated to meet those targets, and the policy instruments that will be employed. The California studies do not directly address the cost implications of these and other policy design decisions, and their overly optimistic findings may leave policymakers with an inadequate appreciation of the stakes associated with decisions that lie ahead. As such, California would benefit from studies that specifically assess the cost implications of alternative policy designs.<br><br>Nonetheless, a careful evaluation of the California studies highlights some important policy design lessons that apply regardless of the extent to which no-cost emission reduction opportunities actually exist. In particular, policies should be designed to account for uncertainty regarding emission reduction costs, much of which will not be resolved before policies must be enacted. Also, consideration of the different market failures that lead to excessive GHG emissions makes clear that to reduce emissions cost-effectively, policymakers should adopt a market-based policy (such as a cap-and-trade system) as the core policy instrument. The presence of specific market failures that may lead to some no-cost emission reduction opportunities suggests the potential value of additional policies that act as complements, rather than alternatives, to a market-based policy. However, to develop complementary policies that efficiently target such no-cost opportunities, policymakers need better information than currently exists regarding the specific market failures that bring about those opportunities. |
| JEL: | Q28 Q38 Q48 Q54 Q58 |
| Date: | 2007–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:13587&r=env |
| By: | David Adamson (Risk and Sustainable Management Group, University of Queensland); Thilak Mallawaarachchi (Risk and Sustainable Management Group, University of Queensland); John Quiggin (Risk & Sustainable Management Group, School of Economics, University of Queensland) |
| Abstract: | It is likely that climate change will be associated with reductions in inflows of water to the Murray–Darling Basin In this paper, we analyse the effects of climate change in the Murray–Darling Basin, using a simulation model that incorporates a state-contingent representation of uncertainty. The severity of the impact depends, in large measure, on the extent to which climate change is manifested as an increase in the frequency of drought conditions. Adaptation will partially offset the adverse impact of climate change. |
| Keywords: | climate change, Murray-Darling Basin, uncertainty, water |
| JEL: | D81 Q25 |
| Date: | 2007–02 |
| URL: | http://d.repec.org/n?u=RePEc:rsm:murray:m07_2&r=env |
| By: | Hope, C.; Newbery, D. |
| Abstract: | The paper1 discusses the determination of the social cost of carbon (SCC) using the PAGE2002 model used in the Stern Review. The SCC depends sensitively on assumptions about future economic development, the range and likelihood of economic and social damage arising from climate change at future dates and the discount rate to apply to that damage. The paper critically examines the choice of pure time preference and the weight to place on damage experienced by other countries in the distant future. Key conclusions are that the SCC rises at about 2.4% p.a. and the range of plausible estimates for the SCC is wide. The SCC is sensitive to a number of factors, significantly the equilibrium temperature rise for a doubling of CO2 concentration, the pure rate of time preference, the non-economic impact, the inequality weighting parameter and the half-life of global warming. Within the model the SCC appears surprisingly insensitive to the emissions scenario for reasons that are explained. The paper points out that methane and SF6 are also powerful GHGs whose impact can be estimated within the model. Key words: Climate change, social impacts, carbon price, rate of pure time preference. |
| JEL: | Q54 Q58 Q52 |
| Date: | 2006–05 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:0749&r=env |
| By: | Vincent Boucher; Yann Bramoullé |
| Abstract: | We introduce uncertainty and risk aversion to the study of international environmental agreements. We consider a simple model with identical agents and linear payoffs. We show that a stable treaty with positive action always exists. While uncertainty lowers the action of signatories, we find that it may increase participation. In addition, uncertainty may generate multiple equilibria. A treaty with low action and low participation may coexist with one with high action and high participation. Overall, and despite risk aversion, the impact of uncertainty on welfare may be positive. A reduction in uncertainty may hurt international cooperation. |
| Keywords: | International Environmental Agreements, Risk Aversion, Uncertainty |
| JEL: | D62 D80 Q54 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:lvl:lacicr:0739&r=env |
| By: | Valentina Bosetti (Fondazione Eni Enrico Mattei); Carlo Carraro (Fondazione Eni Enrico Mattei, University of Venice, CEPR, CESifo and CMCC); Emanuele Massetti (Fondazione Eni Enrico Mattei, Catholic University of Milan and CMCC); Massimo Tavoni (Fondazione Eni Enrico Mattei, Catholic University of Milan and CMCC) |
| Abstract: | The stabilisation of GHG atmospheric concentrations at levels expected to prevent dangerous climate change has become an important, global, long-term objective. It is therefore crucial to identify a cost-effective way to achieve this objective. In this paper we use WITCH, a hybrid climate-energy-economy model, to obtain a quantitative assessment of some cost-effective strategies that stabilise CO2 concentrations at 550 or 450 ppm. In particular, this paper analyses the energy investment and R&D policies that optimally achieve these two GHG stabilisation targets (i.e. the future optimal energy mix consistent with the stabilisation of GHG atmospheric concentrations at 550 and 450 ppm). Given that the model accounts for interdependencies and spillovers across 12 regions of the world, optimal strategies are the outcome of a dynamic game through which inefficiency costs induced by global strategic interactions can be assessed. Therefore, our results are somehow different from previous analyses of GHG stabilisation policies, where a central planner or a single global economy are usually assumed. In particular, the effects of free-riding incentives in reducing emissions and in investing in R&D are taken into account. Technical change being endogenous in WITCH, this paper also provides an assessment of the implications of technological evolution in the energy sector of different stabilisation scenarios. Finally, this paper quantifies the net costs of stabilising GHG concentrations at different levels, for different allocations of permits and for different technological scenarios. In each case, the optimal long-term investment strategies for all available energy technologies are determined. The case of an unknown backstop energy technology is also analysed. |
| Keywords: | Climate Policy, Energy R&D, Investments, Stabilisation Costs |
| JEL: | H0 H2 H3 |
| Date: | 2007–10 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2007.95&r=env |
| By: | Nhemachena, Charles; Hassan, Rashid |
| Abstract: | "Adaptation to climate change involves changes in agricultural management practices in response to changes in climate conditions. It often involves a combination of various individual responses at the farm-level and assumes that farmers have access to alternative practices and technologies available in the region. This study examines farmer adaptation strategies to climate change in Southern Africa based on a cross-section database of three countries (South Africa, Zambia and Zimbabwe) collected as part of the Global Environment Facility/World Bank (GEF/WB) Climate Change and African Agriculture Project. The study describes farmer perceptions to changes in long-term temperature and precipitation as well as various farm-level adaptation measures and barriers to adaptation at the farm household level. A multivariate discrete choice model is used to identify the determinants of farm-level adaptation strategies. Results confirm that access to credit and extension and awareness of climate change are some of the important determinants of farm-level adaptation. An important policy message from these results is that enhanced access to credit, information (climatic and agronomic) as well as to markets (input and output) can significantly increase farm-level adaptation. Government policies should support research and development on appropriate technologies to help farmers adapt to changes in climatic conditions. Examples of such policy measures include crop development, improving climate information forecasting, and promoting appropriate farm-level adaptation measures such as use of irrigation technologies." from Authors' Abstract |
| Keywords: | Climate change, Adaptation, |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:00714&r=env |
| By: | Jean-Marie Grether (University of Neuchâtel); Nicole A. Mathys (University of Lausanne and EPFL); Jaime de Melo (University of Geneva and CEPR) |
| Abstract: | Combining unique data bases on emissions with sectoral output and employment data, we study the sources of the fall in world-wide SO2 emissions and estimate the impact of trade on emissions. Contrarily to concerns raised by environmentalists, an emission-decomposition exercise shows that scale effects are dominated by technique effects working towards a reduction in emissions. A second exercise comparing the actual trade situation with an autarky benchmark estimates that trade, by allowing clean countries to become net importers of emissions, leads to a 10% increase in world emissions with respect to autarky in 1990, a figure that shrinks to 3.5% in 2000. Additionally, back-of-the-envelope calculations suggest that emissions related to transport are of the same magnitude. In a third exercise, we use linear programming to simulate extreme situations where world emissions are either maximal or minimal. It turns out that effective emissions correspond to a 90% reduction with respect to the worst case, but that another 80% reduction could be reached if emissions were minimal. |
| Keywords: | Trade, Growth, Environment, Decomposition, Embodied Emissions in Trade, Transport |
| JEL: | F11 Q56 |
| Date: | 2007–10 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2007.93&r=env |
| By: | Annette Bongardt (Universidade Moderna and IEEI); Isabel Cabrita (Universidade Moderna and INETI) |
| Abstract: | This paper considers the prerequisites for implementing a competitive low-carbon economy in the European Union from the point of view of firms’ incentives, the role of policy and the contribution of public research. It suggests that the reduction of the environmental impact of energy can be a new competitiveness factor. Rather than being treated as a constraint and cost-aggravating factor, addressing climate change can offer economic opportunity and contribute to growth. The paper looks at both static (energy efficiency) and dynamic (innovation – new products, processes, technologies or sectors and consumption patterns) dimensions of competitiveness. |
| Keywords: | Economic competitiveness; low-carbon economy; energy; technology; and public research. |
| JEL: | M21 H23 H44 |
| Date: | 2007–11 |
| URL: | http://d.repec.org/n?u=RePEc:ave:wpaper:492007&r=env |
| By: | Ekin Birol (Department of Land Economy, University of Cambridge, UK); Nick Hanley; Phoebe Koundouri; Yiannis Kountouris |
| Abstract: | This paper employs a choice experiment to estimate the value of management options for the Bobrek wetland in Poland. The local public’s valuation of several wetland management attributes, including flood risk reduction, biodiversity conservation and improvement of recreational access, are investigated. A latent class model and a covariance heterogeneity model are estimated to account for heterogeneity in the preferences of the local public. The results reveal that there is considerable preference heterogeneity across the local public; however on average they derive the highest values from reductions of flooding risk. The results of this study are expected to assist policy makers in undertaking effective flood risk reduction measures and formulating efficient, equitable and sustainable wetland management policies in accordance with the European Union Water Framework Directive (2000/60/EC). |
| Keywords: | choice experiment, latent class model, covariance heterogeneity model, flood risk, biodiversity conservation, recreation |
| JEL: | Q2 Q4 R4 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:lnd:wpaper:200728&r=env |
| By: | Ralph Winkler (CER-ETH – Center of Economic Research at ETH Zurich) |
| Abstract: | In this paper we investigate the reasons why integrated conservation and development projects (ICDPs) fail to achieve their conservation goals. We develop a bio-economic model of open access land and wildlife exploitation, which is consistent with many farming and hunting societies living in close proximity to forest reserves in developing countries. We show that the ICDP creates incentives to conserve habitat and wildlife, but, in general, the socially optimal level of conservation cannot be achieved, because of externalities among the local communities. We show how a social planner can achieve the socially optimal levels of habitat and wildlife by a more encompassing tax/subsidy regime. |
| Keywords: | bio-economic modelling, competing land-use, ecotourism, integrated conservation and development projects, poaching, wildlife and habitat conservation |
| JEL: | Q56 O13 H23 |
| Date: | 2007–11 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:07-76&r=env |
| By: | Zhang, Xiaobo; Xing, Li; Fan, Shenggen; Luo, Xiaopeng |
| Abstract: | "Over the past several decades, China has made tremendous progress in market integration and infrastructure development. Demand for natural resources has increased from the booming coastal economies, causing the terms of trade to favor the resource sector, which is predominantly based in the interior regions of the country. However, the gap in economic development level between the coastal and inland regions has widened significantly. In this paper, using a panel data set at the provincial level, we show that Chinese provinces with abundant resources perform worse than their resource-poor counterparts in terms of per capita consumption growth. This trend that resource-poor areas are better off than resource-rich areas is particularly prominent in rural areas. Because of the institutional arrangements regarding property rights of natural resources, most gains from the resource boom have been captured either by the government or state owned enterprises. Thus, the windfall of natural resources has more to do with government consumption than household consumption. Moreover, in resource-rich areas, greater revenues accrued from natural resources bid up the price of non-tradable goods and hurt the competitiveness of the local economy." from Authors' Abstract |
| Keywords: | Regional inequality, Resource curse, Dutch disease, Property rights, |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:00713&r=env |
| By: | Fabbri, Giorgio |
| Abstract: | We present a growth model in which a non-renewable resource enters in the production function. The non-renewable resource is supposed to be sold by an external monopolistic that maximizes his intertemporal discounted cash flow. This approach allows to endogenize the price of the resource. We use the historical data of the oil price and of the oil production to calibrate the model. The forecasts of the model about the evolution of the GDP growth rate, the price and amount of the production of the oil are described. The formulation of the model is quite easy but it hallows to obtain a good fit with the recent data and especially with the behavior of the three main quantities considered (oil price, oil supply and GDP growth rate) in the last years. Indeed the recent data suggest a new scenario and probably a progressive reduction of the world oil supply (and an indefinite growth of the prices). The model suggests that such a behavior is not due to the imminent physical end of the oil but has a clear economic explanation. |
| Keywords: | Non-renewable resources, Oil, Endogenous Growth |
| JEL: | Q32 Q31 C61 O40 Q43 |
| Date: | 2007–11–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:5651&r=env |
| By: | De, Utpal Kumar |
| Abstract: | Coal and limestone are the two important natural resources abundant in Meghalaya. These two minerals have been extracted substantially during last few decades and have been contributing significantly to the employment and income in the state. But the rising extraction over time has raised concern about the sustainability of the progress of the area as the extraction has been going on not for any kind of local industrial development where employment may be generated further and progress would be accelerated. These are mined only to export and earn money without much value addition. Hence an attempt is made to comparatively study the nature of extraction of these two valuable resources and their future possible consequences with respect to the development of the state. |
| Keywords: | extraction of nonrenewable resources; sustainability. |
| JEL: | A1 Q0 Q3 |
| Date: | 2007–11–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:5678&r=env |
| By: | Kuntala Lahiri-Dutt; |
| Abstract: | This paper presents an analysis of the current status of the Indian coal sector, which is poised for major changes with liberalisation and privatisation of the Indian economy, and critically analyses some policy issues. The state-owned Coal India Limited has been ailed by economic problems and has been responsible for causing serious social disruptions and environmental hazards in its areas of operation. The monopoly status that the public sector companies have enjoyed for over 3 decades has acted as a disincentive in improving the social and environmental performance of the industry, the major effort being put on improving the operational processes through the introduction of technology. The substantial liberalisation of the sector would need to prioritise not only a more integrated and investor-friendly regulatory environment but also take a close look at some old laws of colonial vintage, at issues relating to social equity and justice, and incorporate some of the international compliance standards being put forth by the international agencies. The paper also suggests that the government must develop and implement an integrated energy policy, of which coal is a part. Moreover, it must develop efficient coal markets and raise India’s profile in the world coal markets, commensurate with India’s status as the third-largest coal producer in the world. |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:pas:asarcc:2007-16&r=env |
| By: | John Hartwick (Queen's University); Andrei Bazhanov (Far Eastern National University, Vladivostok); Zhen Song (Central University of Finance and Economics, Beijing) |
| Abstract: | We consider a competitive extraction industry comprising many small firms, each with a slightly different quality of mineral holdings. With "rapidly" declining quality of holding per firm we observe rent declining over and interval. We do not work with the planning solution, commonly invoked in the study of firms with distinct qualities of stock. |
| Keywords: | exhaustible resources, resource rent, competitive extraction |
| JEL: | Q31 D41 |
| Date: | 2007–11 |
| URL: | http://d.repec.org/n?u=RePEc:qed:wpaper:1139&r=env |
| By: | Carlos Torres Fuchslocher (GIGA Institute of Latin American Studies) |
| Abstract: | Although primary industries are important to developing countries, they have been largely unable to contribute to rapid growth. Systematically strengthening the development of local technology-intensive suppliers (t-suppliers), however, may contribute to both reinforcing the industrial base and supporting the competitiveness of primary production. Indeed, the development of t-suppliers has been common in those resource-based economies which achieved a high level of development (Scandinavia, Canada, Australia). This paper explores the role of t-suppliers in natural resource-based economies. It outlines a theoretical framework for the analysis of the factors which foster or constrain their development and defines areas for an effective promotion of t-suppliers. The proposed model of analysis distinguishes between factors influencing the development of t-suppliers on the level of the main industry (MI), the level of supplier firms or firm-level and the level of external determinants with special reference to industrial policy factors. |
| Keywords: | Technology-intensive suppliers, resource-based economies, developing countries, SME promotion, economic growth |
| JEL: | O14 Q22 R11 |
| Date: | 2007–11 |
| URL: | http://d.repec.org/n?u=RePEc:gig:wpaper:60&r=env |
| By: | Ricardo Scarpa (University of Waikato); Mara Thiene (University of Padua); Francesco Marangon (University of Udine) |
| Abstract: | In this paper we investigate consumer preferences for various environmentally-friendly production systems for carrots. We use discrete-choice multi-attribute stated-preference data to explore the effect of the collective reputation of growers from an Alpine valley with an established reputation for its environmentally-friendly production: Val di Gresta “the valley of organic orchards”. Data analysis of the panel of discrete responses identifies unobserved taste heterogeneity for organic, biodynamic and place of origin along with extra variance associated with experimentally designed alternatives. The assumed parametric taste distributions are each tested using the semi-nonparametric specification proposed by Fosgerau and Bierlaire (2007), while the null of normality cannot be rejected for organic and biodynamic production methods, it is rejected for the place of origin. The latter is found to be bi-modal, with modes at each side of zero. The use of a flexible taste distribution increases the plausibility of this form of heterogeneity and it appears promising for future applied studies. |
| Keywords: | mixed logit; flexible taste distributions; random utility parameters; collective reputation; sustainable agriculture; choice modeling; environmentally-friendly methods |
| JEL: | C15 C25 Q26 |
| Date: | 2007–11–11 |
| URL: | http://d.repec.org/n?u=RePEc:wai:econwp:07/24&r=env |
| By: | Smale, Melinda; Zambrano, Patricia; Falck-Zepeda, José; Gruère, Guillaume |
| Abstract: | "A vast literature has accumulated since crop varieties with transgenic resistance to insects and herbicide tolerance were released to farmers in 1996 and 1997. A comparatively minor segment of this literature consists of studies conducted by agricultural economists to measure the farm-level impact of transgenic crop varieties, the size and distribution of the economic benefits from adopting them, consumer attitudes toward GE products, and implications for international trade. This paper focuses only on the applied economics literature about the impact of transgenic crop varieties in non-industrialized agricultural systems, with an emphasis on methods. A number of studies have surveyed the findings for both industrialized and non-industrialized agriculture, at various points in time, but surveys of methods are less frequent and have typically examined only one overall question or approach. Clearly, the methods used in research influence the findings that are presented and what they mean. Understanding the methods therefore enhances understanding of the findings. Four categories of impact analysis are considered: farmers, consumers, industry and trade. In part due to methodological limitations and the relatively brief time frame of most analyses, results are promising, but the balance sheet is mixed. Thus, findings of current case studies should not be generalized to other locations, crops, and traits. The aim of this review is to progress toward the defining a “best practices” methodology for national researchers who seek to produce relevant information about emerging crop biotechnologies for national policymakers. " Authors' Abstract |
| Keywords: | Genetically engineered crops, Economic impacts, Technology adoption, Developing economies, Economics methods, Best practices, biotechnology, |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:eptddp:158&r=env |
| By: | Felix Schlaepfer (Socioeconomic Institute, University of Zurich) |
| Abstract: | In November 2005, 55.7 percent of 2 million Swiss voters approved a 5-year moratorium (ban) on the commercial cultivation of genetically modified (GM) plants within Switzerland. The present study examines how individual voting decisions were determined by (i) socioeconomic characteristics, (ii) political preference/ideology and (iii) agreement with a series of arguments in favour and against the use of GM plants in Swiss agriculture. The analysis is based on the data of the regular voter survey undertaken after national-level voting decisions in Switzerland. Among the socioeconomic characteristics, only the age group was clearly significant with individuals above 65 years less opposed to crop biotechnology. Several political preference/ideology variables were significant determinants of the vote, most notably the preferences about the role of the state in the economy. Perceived consequences of the use of GM plants for health, natural diversity of plants and animals were also strongly and significantly associated with approving and disapproving voter groups. The disapproving votes were not motivated by perceived benefits of GM-food production but mainly by perceived interests of Swiss science and industry. Our findings suggest that current concerns about the use of genetically engineered plants in agriculture may not automatically decrease with higher levels of education/knowledge and generational change. Furthermore, the analysis of the voter motives suggests that the public support for GM-free agricultural production would be even larger in other countries, where industrial interests in crop biotechnology are less pronounced. |
| Keywords: | Externalities, genetically modified organisms (GMO), public goods, voting |
| JEL: | D62 D72 Q26 |
| Date: | 2007–11 |
| URL: | http://d.repec.org/n?u=RePEc:soz:wpaper:0717&r=env |
| By: | Ali DOUAI (GREThA) |
| Abstract: | This paper provides theoretical tools for discussing some aspects of the nature’s value controversy within Ecological Economics. It is argued that the critical stance of ‘incommensurability of values’ can be reinforced with key insights coming from a political economy of wealth inspired by Ricardo and Marx. Having dismissed any reference to the idea of economic value for non-market goods, it remains to outline the role of notions of utility, welfare and interest for giving a richer model of the human actor in a transdisciplinary perspective. |
| Keywords: | Ecological Economics, value, political economy, wealth, well-being |
| JEL: | Q51 Q57 B10 I31 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:grt:wpegrt:2007-18&r=env |
| By: | Shan (Victor) Jiang |
| Abstract: | In ageneral equilibrium model,this paper examine show the rise of aquaculture and the decline of wild fish stocks are related.Two factors, population growth and technological improvement in aquaculture,have been studied in an aquaculture restricted entry case and an aquaculture free entry case.Both factors raise aquaculture production, while changes in wild fish stocks hinge on entry conditions.In the restricted entry case,population growth reduces wild fish stocks, but technological progress in aquaculture raises them.In contrast,in the free entry case,only technological advance in aquaculture affects and raiseswild fish stocks. |
| JEL: | Q22 D50 |
| Date: | 2007–10–31 |
| URL: | http://d.repec.org/n?u=RePEc:clg:wpaper:2007-17&r=env |
| By: | Pollitt, M.; Bialek, J. |
| Abstract: | The requirement for significantly higher electricity network investment in the UK seems certain as the capacity of distributed generation and large scale renewables increases on the system. In this paper, which forms a chapter in the forthcoming Book “Delivering a Low Carbon Electricity System: Technologies, Economics and Policy”2, the authors make a number of significant suggestions for improvement to the current system of network regulation. First, they suggest that the RPI-X system needs to be overhauled in favour of a simpler yardstick based system and which allows for more merchant transmission investments. Second, future regulation should involve more negotiated regulation involving agreements between network owners and purchasers of network services. This would be particularly advantageous for decisions on new network investments. Third, more extensive use needs to be made of locational pricing within the transmission and distribution system in order to facilitate the least cost expansion of low carbon generation, including micropower. Fourth, consideration needs to be given to ownership unbundling of distribution networks from retail supply. This would better facilitate the entry of distributed generation and the development of appropriate competition between grid and off-grid generation supply and demand side management. Finally, there needs to be a significant increase in R&D expenditure in electricity networks supported by customer levies. Key words: Electricity networks, incentive regulation. |
| JEL: | L94 |
| Date: | 2007–09 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:0750&r=env |
| By: | Linacre, Nicholas; Falck-Zepeda, José; Komen, John; MacLaren, Donald |
| Abstract: | "Compared to both Canada and the United States, Australia has been slow to approve commercial planting of transgenic crops. Two probable reasons exist for the slow approval rate of transgenic crops in Australia. The first reason is community perceptions about the risks associated with transgenic technologies. The second is the regulatory framework currently employed to approve commercial releases. This paper examines some of the potential regulatory issues that may be affecting the review process and approval of transgenic technologies. First we provide a brief introduction to the regulatory structure in Australia, second we consider the impact of regional, national and state jurisdictions, third we argue that the regulator needs to consider the use of benefits analysis in decision making, fourth we argue for the use of probabilistic risk assessments in certain circumstances, and fifth we look at potential problems inherent in majority voting in a committee and recommend alternatives." Authors' Abstract |
| Keywords: | Risk assessment, |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:eptddp:157&r=env |
| By: | Jaffe, Gregory |
| Abstract: | "This paper analyzes the current and proposed biosafety systems in Kenya, Tanzania, and Uganda using a set of components and characteristics common to functional and protective biosafety regulatory systems. It also assesses how those systems take into account the major international legal obligations that relate to biosafety, such the Cartagena Biosafety Protocol. The paper identifies certain areas in each country's biosafety regulatory systems where further development and clarification would improve the biosafety system, making it more functional and protective. Those areas include: (1) the addition of procedures to ensure the food safety of genetically engineered organisms; (2) the inclusion of the standard and criteria for making an approval decision; (3) the differentiation of regulatory procedures based on the relative risk of the organism; and (4) an explanation of how socio-economic considerations will be defined and assessed. Finally, the paper discusses possible ways the three countries can coordinate and harmonize their national biosafety regulatory systems so they are efficient, effective and make the best use of limited scientific and legal capacity." Author's Abstract |
| Keywords: | Biosafety, Food safety, Genetically modified organisms, Genetic engineering, |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:eptddp:146&r=env |
| By: | Falck-Zepeda, Jose; Horna, Daniela; Smale, Melinda |
| Abstract: | "Cotton is the largest source of export receipts of several West African countries. Statistics however show a decreasing tendency in cotton yields and an increasing tendency in pesticide use. Under this circumstances there appear to be potential payoffs from the use of biotechnology products in the farming systems of the region. In this study we estimate different scenarios for the potential deployment of insect resistant cotton in selected countries in West Africa (WA). We use an economic surplus model augmented with a more rigorous sensitivity analysis of model parameters. Hypothetical scenarios of Bt cotton adoption in WA are simulated and single point values of model parameters are substituted with probability distributions. The scenarios include: no adoption in WA; adoption of existing varieties; adoption of WA varieties backcrossed with private sector lines; and fluctuating adoption patterns. According to the simulations, the total net benefits of adopting Bt seem to be small even after including the innovator surplus who accrues a larger share of the benefits. In contrast the WA countries included in the evaluation are worse off if they decide no to adopt Bt cotton. These results are in part explained by the conservative assumptions taken. The adoption pattern and the length of the adoption period affect the share of benefits earned by producers as compared to innovators. This study provides tools and information that can be used to build greater confidence in the process of setting agricultural research investment priorities." from Authors' Abstract |
| Keywords: | Economic impacts, Bt-cotton, Economic surplus model, Economic surplus, Risk, Probability distributions, Impact assessment, Net benefits, |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:00718&r=env |