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on Environmental Economics |
| By: | Michael Hoel (University of Oslo) |
| Abstract: | Fossil fuels are non-renewable carbon resources, and the extraction path of these resources depends both on present and future demand. When this “Hotelling feature” is taken into consideration, the whole price path of carbon fuel will shift downwards as a response to the reduced cost of the renewable substitute. An implication of this is that greenhouse gas emissions in the near future may increase as a response to the reduced cost of the renewable substitute. If this is the case, increased climate costs may outweigh the benefits of reduced costs of a substitute, thus reducing overall social welfare. |
| Keywords: | Climate Change, Exhaustible Resources, Renewable Energy |
| JEL: | Q30 Q42 Q5 |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2009.1&r=env |
| By: | Aude Pommeret (University of Lausanne and IREGE-University of Savoie); Fabien Prieur (IREGE-University of Savoie) |
| Abstract: | The design of environmental policy typically takes place within a framework in which uncertainty over the future impact of pollution and two different kinds of irreversibilities interact. The first kind of irreversibility concerns the sunk cost of environmental degradation; the second is related to the sunk cost of environmental policy. Clearly, the two irreversibilities pull in opposite directions: policy irreversibility leads to more pollution and a less/later policy while environmental irreversibility generates less pollution and a more/sooner policy. Using a real option approach and an infinite time horizon model, this paper considers both irreversibilities simultaneously. The model first is developed by paying particular attention to the option values related to pollution and policy adoption. Solving the model in closed form then provides solutions for both the optimal pollution level and the optimal environmental policy timing. Finally, the model is "calibrated" with the purpose of appraising which irreversibility has the prevailing effect and what is the overall impact of both irreversibilities on pollution and policy design. |
| Keywords: | Environmental Policy, Environmental Irreversibility, Policy Irreversibility |
| JEL: | Q58 D81 |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2009.10&r=env |
| By: | Natacha Raffin (Centre d'Economie de la Sorbonne - Paris School of Economics) |
| Abstract: | This article aims at investigating the interplay between environmental quality, health and development. We consider an OLG model, where human capital dynamics depend on the current environment, through its impact on children's school attendance. In turn, environmental quality dynamics depend on human capital, through maintenance and pollution. This two-way causality generates a co-evolution of human capital and environmental quality and may induce the emergence of an environmental poverty trap characterized by a low level of human capital and deteriorated environmental quality. Our results are consistent with empirical observation about the existence of Environmental Kuznets Curve. Finally, the model allows for the assessment of an environmental policy that would allow to escape the trap. |
| Keywords: | Education, environmental quality, growth, health. |
| JEL: | D90 H51 I20 Q01 |
| Date: | 2009–04 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:09026&r=env |
| By: | Nicole Grunewald (Georg-August-Universität Göttingen / Gemany); Inmaculada Martínez-Zarzoso (Georg-August-Universität Göttingen / Germany) |
| Abstract: | In the last two decades increasing attention has been paid to the relationship between environmental quality and economic development. According to the Environmental Kuznets Curve (EKC) hypothesis this relationship may be described by an inverted-U curve. However, recent evidence rejects the EKC hypothesis for GHG emissions in a broad sense. In this paper we aim to investigate whether the EKC behavior for CO2 emissions could be proved on the behalf of institutional regulations. We analyze the driving factors of Carbon Dioxide Emissions (CO2) for developed and developing countries to test the theory of the EKC in the context of environmental regulations using a static and dynamic panel data model. We consider the Kyoto Protocol and the Clean Development Mechanism (CDM). The results from this study indicate that the Kyoto obligations have a reducing effect on CO2 emissions in developed and developing countries and highlight the differences behind the driving forces of CO2 emissions for those two groups of countries. Finally, it is still too early to predict accurately the expected effects of CDM projects on emissions. |
| Keywords: | Environmental Kuznets Curve, Kyoto Protocol, CDM |
| JEL: | Q54 Q56 |
| Date: | 2009–05–05 |
| URL: | http://d.repec.org/n?u=RePEc:got:iaidps:190&r=env |
| By: | Pablo del Río González; Xavier Labandeira Villot |
| Abstract: | The aim of this paper is to explore the implications of the current economic crisis for climate change trajectories and climate change policies. It is argued that, contrary to what many would expect, the economic recession negatively affects emissions reduction efforts through its discouraging effects on investments in low-carbon technologies. It is also argued that, although the growing climate change concerns justify public intervention even at times of economic hardship, there are reciprocal influences between the economic crisis and climate policy-making. Indeed, given the greater competition on scarce resources and short-term priorities for the use of those resources, the economic crisis strengthens the case for a suitable design of climate policies which leads to cost-effective emissions reductions in an intertemporal perspective. This calls for clear, long-term and stable policy frameworks in order to reduce the risks for investors. At the international level this requires more, and not less, collaboration between countries. There are also implications in terms of the choice of instruments. Traditional market-based climate policy instruments, such as taxes and emissions trading schemes are particularly attractive on their own for several reasons, but should be integrated with technology-policy instruments using the revenues of the former to fund the later. Furthermore, the economic crisis provides an opportunity to apply an environmental tax reform. Finally, the counter-cyclical effects of a low-carbon investment package should not be underestimated. |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:fda:fdacee:05-09&r=env |
| By: | David Kelly |
| Abstract: | Governments support particular firms or sectors by granting low interest financing, reduced regulation, tax relief, price supports, monopoly rights, and a variety of other subsidies. Previous work in partial equilibrium shows that subsidies to environmentally sensitive industries increases output and pollution emissions. We examine the environmental effects of subsidies in general equilibrium. Since all resources are used, whether or not subsidies increase emissions depends on the relative emissions intensity and incentives to emit of the subsidized industry versus the emissions intensity and the incentives to emit of the industry which would otherwise use the resources. Since subsidies must move resources to a less productive use, the economy wide marginal product of emissions falls with an increase in any subsidy, tending to decrease emissions. On the other hand, subsidies tend to move resources to more emissions intensive industries. Thus, subsidies increase pollution emissions if resources are moved to an industry for which emissions intensity is high enough to overcome the reduction in emissions caused by lower overall marginal product of emissions. We show that, under general conditions, subsidies also increase the interest rate, thus causing the economy to over-accumulate capital. Steady state emissions then rise, even if emissions fall in the short run. We also derive an optimal second best environmental policy given industrial subsidies. The results indicate that, under reasonable conditions, subsidies raise the opportunity cost of environmental quality in the long run. Finally, we examine the relationship between growth and the environment with subsidies. Under more restrictive conditions, reducing some subsidies may offer a path to sustainable development by raising income and at the same time improving the environment. |
| JEL: | H23 H25 Q28 Q5 Q53 Q56 |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:14999&r=env |
| By: | Katrin Millock (Centre d'Economie de la Sorbonne - Paris School of Economics); Angels Xabadia (Department of Economics - University of Girona); David Zilberman (Department of Agricultural and Resource Economics - University of California) |
| Abstract: | With the development of modern information technologies, relying on nanotechnologies and remote sensing, a number of systems can be envisaged that allow for monitoring of the negative externalities generated by producers, consumers or travelers - road pricing schemes or individual emission meters for automobiles are two examples. In the paper, we analyze a dynamic model of stock pollution when the regulator has incomplete information on emissions generated by heterogeneous agent. The paper's contribution is to explicitly study a decentralized policy for adoption of monitoring equipment over time. Each agent has to choose between paying a fixed fee or installing monitoring technology and paying a tax on actual emissions. We determine the second-best tax rates, the pattern of monitoring technology adoption, and identify conditions for the voluntary diffusion of monitoring technologies over time. |
| Keywords: | Externalities, environmental taxation, monitoring technology adoption, diffusion, nanotechnologies. |
| JEL: | D62 H23 L51 O33 Q58 |
| Date: | 2009–02 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:09010&r=env |
| By: | Andrade, André Luiz |
| Abstract: | The relationship between economic growth and environmental degradation has been widely studied in recent years. Defenders of the Environmental Kuznets Curve (EKC) hypothesis argue that the environmental pressure coming from economic growth is growing at first and as the economy moves on its development stages, the relationship becomes decreasing. In this discussion, this paper aims to analyze the relationship between CO2 emissions, resulting from burning fossil fuels in liquid form, and the Brazilian economic growth, by means of per capita GDP, with a time series beginning at 1903. Additionally, it is discussed the avoided CO2 emissions arising from the Brazilian energy policy adopted from the 1970s to the transport sector. The evidence found indicates that the relationship between the two variables is linearly increasing, not allowing to conclude that there is an EKC for the case in study. |
| Keywords: | Emissões de CO2; PIB per capita; Transportes; Curva de Kuznets Ambiental. |
| JEL: | Q56 Q01 |
| Date: | 2009–05–13 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:15313&r=env |
| By: | Tol, Richard S. J. (Economic and Social Research Institute (ESRI)) |
| Date: | 2009–04 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:rb20090101&r=env |
| By: | Robin Boadway (Queen's University); Zhen Song (Central University of Economics and Finance, Beijing); Jean-Francois Tremblay (University of Ottawa) |
| Abstract: | In this paper, we characterize a mechanism for reducing pollution emissions in which countries, acting non-cooperatively, commit to match each others' abatement levels and may subsequently engage in emissions quota trading. The analysis shows that the mechanism leads to efficient outcomes. The level of emissions is efficient, and if the matching abatements process includes a quota trading stage, the marginal benefits of emissions are also equalized across countries. Given the equilibrium matching rates, the initial allocation of emission quotas (before trading) reflects each country's marginal valuation for lower pollution relative to its marginal benefit from emissions. These results hold for any number of countries, in an environment where countries have different abatement technologies and different benefits from emissions, and even if the emissions of countries are imperfect substitutes in each country's damage function. In a dynamic two-period setting, the mechanism achieves both intra-temporal and inter-temporal efficiency. We extend the model by assuming that countries are voluntarily contributing to an international public good, in addition to undertaking pollution abatements, and find that the level of emissions may be efficient even without any matching abatement commitments, and the marginal benefits of emissions may be equalized across countries even without quota trading. |
| Keywords: | voluntary pollution abatement, matching commitments, emissions quota trading |
| JEL: | H23 H41 H87 |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:qed:wpaper:1205&r=env |
| By: | Gustavo A. Marrero |
| Abstract: | The 20/20/20 plan for Europe emphasizes the role of changing the energy model as a means to reach the objective of reducing emissions in 2020 by 20% with respect to 1990 levels. Most empirical emission models are found within the framework of the Environmental Kuznetz Curve (EKC), which focuses on the relationship between emissions and economic activity, ignoring energy aspects. However, the importance of energy on GHG emissions is reflected by the fact that 80% of said emissions in Europe are currently due to the use and production of energy. This paper includes energy variables in an EKC dynamic panel data (DPD) model and uses the one-step system GMM estimator of Blundell and Bond (1998), which should allow for endogeneity, measurement error and omitted variable problems. For a panel of 24 European countries between 1990 and 2006, results suggest the existence of conditional convergence in terms of GHG emissions, no evidence of the EKC hypothesis, a positive and lower than one emissions-energy elasticity and how merely shifting the energy mix toward renewable sources (and, to a lesser extent, nuclear) would yield significant reductions in per capita emissions. |
| Date: | 2009–04 |
| URL: | http://d.repec.org/n?u=RePEc:fda:fdaddt:2009-16&r=env |
| By: | Xavier Labandeira Villot; Pedro Linares |
| Abstract: | Energy efficiency and conservation are major elements for the improvement of the environmental impact of the energy sector, particularly regarding climate change. Energy efficiency also contributes to reducing external dependence and vulnerabilities in the energy domain. In this paper we discuss the factors that influence energy efficiency and conservation decisions, and the most appropriate policies for their promotion. Although not all public policies seem justified, we argue that specific policies for promoting energy conservation may be required, preferably based on economic instruments or on the provision of information to consumers. |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:fda:fdacee:06-09&r=env |
| By: | Valentina Bosetti (Fondazione Eni Enrico Mattei and CMCC); Carlo Carraro (FEEM, University of Venice, CEPR, CESIFO and CMCC); Romain Duval (OECD, Economics Department); Alessandra Sgobbi (Fondazione Eni Enrico Mattei and CMCC); Massimo Tavoni (Fondazione Eni Enrico Mattei and CMCC) |
| Abstract: | This paper uses the WITCH model, a computable general equilibrium model with endogenous technological change, to explore the impact of various climate policies on energy technology choices and the costs of stabilising greenhouse gas concentrations. Current and future expected carbon prices appear to have powerful effects on R&D spending and clean technology diffusion. Their impact on stabilisation costs depends on the nature of R&D: R&D targeted at incremental energy efficiency improvements has only limited effects, but R&D focused on the emergence of major new low-carbon technologies could lower costs drastically if successful – especially in the non-electricity sector, where such low-carbon options are scarce today. With emissions coming from multiple sources, keeping a wide range of options available matters for stabilisation costs more than improving specific technologies. Due to international knowledge spillovers, stabilisation costs could be further reduced through a complementary, global R&D policy. However, a strong price signal is always required. |
| Keywords: | Climate policy; Energy R&D; Fund; Stabilisation costs |
| JEL: | H0 H2 H3 H4 O3 Q32 Q43 Q54 |
| Date: | 2009–02 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2009.14&r=env |
| By: | Xavier Pautrel (Nantes Atlantique Université) |
| Abstract: | This article studies how demography affects the outcome of the environmental policy in a macro-economic perspective, incorporating age-earning profiles in an OLG model à la Blanchard (1985) to capture the age structure effect of the demographic shocks. It first demonstrates, conversely to previous works of the related literature that a decrease in the birth rate may lower the steady-state per capita stock of physical capital even if the aggregate labor supply is exogenous. It also demonstrates that the ageing of population influences the macro-economic impact of the environmental policy according to the cause of the ageing and the life-cycle earnings assumption. Thus, with decreasing age-earning profiles, a lower birth rate reduces the detrimental impact of the environmental policy on the steady-state per capita stock of physical capital for low values of this birth rate, while a reduction of the mortality rate reinforces the negative outcome of the environmental policy. When earnings profiles are independent of age, ageing always strengthens the negative impact of the environmental policy. |
| Keywords: | Demography, Environment |
| JEL: | Q56 |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2009.5&r=env |
| By: | D. A Christie |
| Abstract: | The authors draws the reader’s attention to the twin toxic hazards that is radiation and chemicals linger , the author effectively fused the pre-existent pollution concerns of urban and industrial reformers to the ecological sensitivities of resource conservation and wilderness preservation. This forceful vision helped to establish the modern environmental movement. Forty years after the publication of Silent Spring, the Wellcome Trust Centre’s Witness Seminar convened to assess the legacy of this book in relation to environmental toxicology.[WELLCOME TRUST CENTRE VOL- 19,2004] |
| Keywords: | Monoclonal antibodies; renal transplantation; Pneumoconiosis; Oral contraceptives;Endogenous opiates;nuclear magnetic resonance;magnetic resonance imaging; MRC Common Cold Unit; psychiatric practice; heart transplant; Haemophilia;Obstetric ultrasound;penicillin antibiotics; MRC Epidemiology Unit (South Wales); asthma;Peptic ulcer; maternal care; leukaemia;MRC Applied Psychology Unit; Genetic testing; Foot and mouth diseas;cystic fibrosis; environmental toxicology; Thrombolysis |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:1932&r=env |
| By: | Nelson, Gerald C. |
| Keywords: | Climate change, Copenhagen, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:2020br:16(1)fr&r=env |
| By: | G. Raghuram |
| Abstract: | Mega projects (primarily infrastructure) receive a sizable investment (~10%) of the gross fixed capital formation in India. Environmental clearances and land acquisitions have been the two major reasons for delays in the projects. However, there has been a steady increase in the proportion of projects running on schedule and a sharp decline in the proportion of projects with cost overruns. These accomplishments have been achieved due to better financing, project management, and reform in the regulatory frameworks related to environmental and land acquisition aspects.With increasing private sector participation, delays due to project management are expected to reduce. The modifications in the regulatory framework on environmental and land acquisition issues are moves in the right direction. However, methods used for assessments related to environmental impact and land acquisition are still manual, making the whole process time consuming. Technology could be a good instrument in reducing the time required for these assessments as well as in bringing transparency in the system. Decentralization with capacity building at the state level would also help in the long run in reducing these delays.[IIMA- WP NO- 2009-03-07] |
| Keywords: | "infrastructure; fixed capital formation; Land acquisition; Ministry of Statistics and Program Implementation; regulatory frameworks; Environmental Issues; Forest Conservation Act 1980; the Environment Protection Act 1986; State Pollution Control Board; Land Acquisition Issues; National Policy on Resettlement and Rehabilitation for Project-Affected Families of 2003; National Highways Act of 1956; Bangalore Mysore Infrastructure Corridor; Judicial Activism; Religious Sentiments |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:1954&r=env |
| By: | Antoine d'Autume (Centre d'Economie de la Sorbonne - Paris School of Economics); John M. Hartwick (Queen's University); Katheline Schubert (Centre d'Economie de la Sorbonne - Paris School of Economics) |
| Abstract: | Following Stollery [1998], we extend the Solow, Dasgupta-Heal model to analyze the effects of global warning. The rise of temperature is caused by the use of fossil resources so that the temperature level can be linked to the remaining stock of these resources. The riise of temperature affects both productivity and utility. We characterize optimal solutions for the maximin and zero-discounting cases and present closed form solutions for the case where the production function and utility function are Cobb-Douglas, and the temperature level is an exponential function of the remaining stock of resources. We show that a greater weight of temperature in the preferences or a larger intertemporal elasticity of substitution both lead to postpone resource use. |
| Keywords: | Maximin, zero-discounting, global warming. |
| JEL: | Q32 |
| Date: | 2009–02 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:09013&r=env |
| By: | Nelson, Gerald C. |
| Keywords: | Climate change, Copenhagen, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:2020br:16(1)sp&r=env |
| By: | Adriaan Perrels; Mikko Hongisto; Kaarina Hyvönen; Juha-Matti Katajajuuri; Ari Nissinen |
| Abstract: | This report is the first of a series of reports produced by the Climate Bonus study. In this project is surveyed what are the possibilities and the effectiveness of the combined use of (1) verified carbon footprints (possibly visualised through labels), (2) personalised monitoring and feedback services to households regarding the greenhouse gas intensities of their purchases, (3) a reward system (bonuses) for consumers who manage to reduce the embodied emissions, and (4) a secondary reward system for retailers that successfully reduce the emission intensity of their sales. This first report is based on a quick scan of literature and internet sources as well as on a few interviews. It provides an overview of developments in the applications of the constituent elements of the above mentioned combination elsewhere in Europe. Particular attention is paid to retail client bonus systems, green credit cards, carbon offset services, and product chain ? emission data bases (notably specific emission attribution methodology and verification). In addition to a review of findings regarding experiences elsewhere the discussions include also theoretical or methodological considerations. |
| Keywords: | Bonus systems, carbon compensation, carbon footprints, carbon offset, embodied emissions, feedback, LCA, lifecycle analysis |
| JEL: | Q01 Q56 Q54 D10 D80 |
| Date: | 2009–04–30 |
| URL: | http://d.repec.org/n?u=RePEc:fer:resrep:143:1&r=env |
| By: | Sabine Fuss (International Institute of Systems Analysis); Alexander Golub (Environmental Defense Fund); Jana Szolgayova (International Institute of Systems Analysis and Comenius University); Michael Obersteiner (International Institute of Systems Analysis) |
| Abstract: | Tropical deforestation is one of the major sources of carbon emissions, but the Kyoto Protocol presently excludes avoiding these specific emissions to fulfill stabilization targets. Since the 13th Conference of the Parties (COP) to the UNFCCC in 2007, where the need for policy incentives for the reduction of emissions from deforestation and degradation (REDD) was first officially recognized, the focus of this debate has shifted to issues of implementation and methodology. One question is how REDD would be financed, which could be solved by integrating REDD credits into existing carbon markets. However, concern has been voiced regarding the effects that the availability of cheap REDD credits might have on energy investments and the development of clean technology. On the other hand, investors and producers are also worried that emissions trading schemes like the one installed in Europe might deter investment into new technologies and harm profits of existing plants due to fluctuations in the price of emissions permits. This paper seeks to contribute to this discussion by developing a real options model, where there is an option to invest in less carbon-intensive energy technology and an option to purchase credits on REDD, which you will exercise or not depending on the future evolution of CO2 prices. In this way, unresolved questions can still be addressed at a later stage, while producers and investors hold REDD options to maintain flexibility for later decisions. We find that investment in cleaner technology is not significantly affected if REDD options are priced as a derivative of CO2 permits. Indeed, the availability of REDD options helps to smooth out price fluctuations that might arise from permit trading and thus decreases risk for the producer - thereby being a complement to permit trading rather than an obstacle undermining cap-and-trade. |
| Keywords: | Real Options, Energy Investment, Cap-And-Trade, REDD |
| JEL: | Q23 Q28 |
| Date: | 2009–03 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2009.17&r=env |
| By: | William K. Jaeger (Oregon State University) |
| Abstract: | Recent literature has investigated whether the welfare gains from environmental taxation are larger or smaller in a second-best setting than in a first-best setting. This question has mainly been addressed indirectly, by asking whether the second-best optimal environmental tax is higher or lower than the first-best Pigouvian rate. Even this indirect question, though, has itself been approached indirectly, comparing the second-best optimal environmental tax to a proxy for its first-best value, an expression for marginal social damage (MSD). On closer examination, however, MSD becomes ambiguously defined and variable in a second-best setting, making it an unreliable proxy for the first-best Pigouvian rate. With these concerns in mind, the current analysis reevaluates the central welfare question both directly and indirectly and finds that when compared directly to its first-best Pigouvian value, the second-best optimal environmental tax generally rises with increased revenue requirements. Even in cases where the second-best optimal environmental tax is lower than its first-best value, the welfare gains may be greater than in a first-best setting. These results suggest that the marginal fiscal benefit (revenue recycling effect) exceeds the marginal fiscal cost (tax base effect) over a range of environmental tax rates that, for benchmark models, extends above the first-best Pigouvian rate. Results in the tax interaction literature are fully consistent with these interpretations once the effects of normalizations and numeraires are fully recognized. These findings reinforce the intuition that environmental policy complements rather than competes with the provision of other public goods. |
| Keywords: | Optimal Environmental Tax, Second-best, Double Dividend, Tax Interaction Effect, Revenue Recycling, Tax Base Effect, Pigouvian Rate, Excess Burden |
| JEL: | H21 Q5 |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2009.9&r=env |
| By: | Giulia Macagno (Fondazione Eni Enrico Mattei); Maria Loureiro (Universidade de Santiago de Compostela); Paulo A.L.D. Nunes (University of Venice and FEEM); Richard Tol (The Economic and Social Research Institute and Free University) |
| Abstract: | This analysis provides an example of how biodiversity can be measured by means of different indicators, and how the latter can be used to assess the influence of the biodiversity profile of a region on the tourism flows towards it. Previous studies have considered environmental amenities as one of the determinants of tourism destination choice. The central hypothesis of this paper is that the destination’s biodiversity profile can be considered as a key component of environmental amenities. The main objective of this study is to propose a different perspective on this topic, considering the role of biodiversity on tourists’ choice of destination and duration of stay. Domestic Irish tourist flows have been chosen as a case study. The first step of the analysis required the construction of biodiversity indicators suitable for developing a biodiversity profile of each Irish county. Subsequently, a model was developed so as to explain the total number of nights spent in any location as a function of a set of explanatory variables including information about the socio-demographic characteristics of respondents, biodiversity and the landscape profile of the county of destination and features of the trip. Results show that most of the biodiversity and landscape indicators included in the analysis turn out to be statistically significant in determining tourists’ choices regarding the duration of their trip. As a result, policies pursuing biodiversity conservation appear to have a positive impact on the revenue of regional tourism. |
| Keywords: | Species Diversity, Habitat Fragmentation, Landscape Diversity, Trip Demand, Indicators, Ecosystem Services, Human Well-Being |
| JEL: | Q57 |
| Date: | 2009–04 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2009.21&r=env |
| By: | Massimiliano Mazzanti (University of Ferrara); Anna Montini (niversity of Bologna, CERIS CNR) |
| Abstract: | This paper provides new empirical evidence on regional–national disparities in environmental efficiency, based on case studies of Italy and the Lazio region, which includes the city of Rome. Shift-share analyses provide evidence on the drivers of environmental efficiency and on sector specificity. This confirms the usefulness of this method for studying the environmental economics realm, in order to investigate structural and efficiency factors at the level of within country environmental efficiency performance, even in light of the different shares of services. Our evidence shows that although the Rome region has achieved higher environmental performance compared to Italy mainly thanks to its being less industry based, some critical points in the energy sector and in some services should be taken into account in shaping the future development of the region. Environmental, industrial and sector-oriented policy making may also derive valuable information from the evidence provided by our study. |
| Keywords: | NAMEA, Shift Share, Regional Development, RAMEA, Emission Efficiency, Economic Efficiency |
| JEL: | C67 D57 O4 O18 Q53 Q56 |
| Date: | 2009–02 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2009.11&r=env |
| By: | Lea Nicita (Fondazione Eni Enrico Mattei); Carlo Carraro (University of Venice, Fondazione Eni Enrico Mattei, CEPR, CEPS, CESifo and CMCC); Emanuele Massetti (Fondazione Eni Enrico Mattei) |
| Abstract: | This paper analyses whether and how a climate policy designed to stabilize greenhouse gases in the atmosphere is likely to change the direction and pace of technical progress. The analysis is performed using an upgraded version of WITCH, a dynamic integrated regional model of the world economy. In this version, a non-energy R&D Sector, which enhances the productivity of the capital-labor aggregate, has been added to the energy R&D sector included in the original WITCH model. We find that, as a consequence of climate policy, R&D is re-directed towards energy knowledge. Nonetheless, total R&D investments decrease, due to a more than proportional contraction of non-energy R&D. Indeed, when non-energy and energy inputs are weakly substitutable, the overall contraction of the economic activity associated with a climate policy induces a decline in total R&D investments. However, enhanced investments in energy R&D and in the energy sector are found not to “crowd-out” investments in non-energy R&D. |
| Keywords: | echnical Change, Climate Policy, Stabilization Cost, R&D Investments |
| JEL: | C72 H23 Q25 Q28 |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2009.8&r=env |
| By: | OECD |
| Abstract: | The Paris Declaration on Aid Effectiveness calls upon donor and partner countries to enhance the effectiveness and efficiency of country systems in a way that guarantees ownership and sustainable results. Within this context, the current paper provides a synthesis of major elements and approaches of institutional assessment that may be applied to environmental management. It suggests that while a large number of diagnostic tools are in use, their level of elaboration is not sufficient for systemic sector-specific capacity assessments that would match partners’ and donors’ needs. In order to facilitate the improvement of these tools, the paper provides an inventory of core functions for environmental management. This inventory may be used by those involved in capacity assessments to consider more amply specifics of the environmental sector. Each function will need to be associated with benchmarks reflecting the multifaceted nature of institutional capacity. The evolving approaches to environmental management, as well as changes in the international and country context, impose the need to regularly update both the list of functions and complementary benchmarks.<BR>Afin de répondre aux engagements articulés dans la Déclaration de Paris sur l'efficacité de l'aide ainsi qu’aux priorités actuelles en matière de renforcement des capacités, les pays donateurs et partenaires doivent améliorer les performances des systèmes nationaux en garantissant une gestion au niveau local et des résultats durables. La présente étude offre une synthèse des principaux éléments et méthodes de diagnostic institutionnel pouvant être utilisés pour les systèmes de la gestion environnementale. Bien que les outils de diagnostic employés soient nombreux, leur degré d’élaboration demeure insuffisant pour permettre de procéder à des évaluations systémiques des capacités répondant aux modèles contemporains de partenariats entre les donneurs et les bénéficiaires de l’aide. Pour faciliter l’amélioration de ces outils, l’étude recense les fonctions essentielles des autorités publiques en matière de gestion environnementale. Ce recensement peut servir de point de départ à une analyse plus approfondie des capacités. Il sera nécessaire d’associer chaque fonction aux critères spécifiques et, si possible, aux étalons de référence internationaux susceptibles de mieux rendre compte de la nature pluridimensionnelle des capacités institutionnelles. Toutefois, le caractère évolutif des méthodes de gestion environnementale exige que ces fonctions et les éventuels critères d’analyse soient régulièrement mis à jour et affinés en fonction des changements sur le plan national et international. |
| Keywords: | natural resources, fonction publique, development co-operation, coopération pour le développement, gestion des ressources naturelles, environmental management, gestion environnementale, évaluation et renforcement des capacités, mise en oeuvre des politiques d'environnement, capacity assessment and development, government functions, environmental policy implementation |
| JEL: | O13 O17 Q01 Q56 Q58 |
| Date: | 2009–05–14 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:8-en&r=env |
| By: | Antoine d'Autume (Centre d'Economie de la Sorbonne - Paris School of Economics); Katheline Schubert (Centre d'Economie de la Sorbonne - Paris School of Economics) |
| Abstract: | This paper studies the undiscounted utilitarian optimal paths of the canonical Dasgupta-Heal-Solow model when the stock of natural capital is a direct argument of well-being, besides consumption. We use a Keynes-Ramsey rule wich yields a generalization of Hartwick's rule : if society has a zero discount rate but is ready to accept intertemporal substitution, net investment should not be zero as in the maximin case but should be positive, its level depending on the distance between the current and the long run bliss level of utility. We characterize solutions in the Cobb-Douglas utility and production case, and analyse the influence of the intertemporal elasticity of substitution on the time profile of the optimal paths. We show that, in the Cobb-Douglas case, the ratio of the values of the resource and capital stocks remains constant along the optimal path, and is independent of initial conditions. |
| Keywords: | Exhaustible resources, Hartwick's rule, intertemporal substitution. |
| JEL: | D9 Q01 Q3 |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:09012&r=env |
| By: | Dominique Ami (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - Université de la Méditerranée - Aix-Marseille II - Université Paul Cézanne - Aix-Marseille III - Ecole des Hautes Etudes en Sciences Sociales - CNRS : UMR6579); Frédéric Aprahamian (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - Université de la Méditerranée - Aix-Marseille II - Université Paul Cézanne - Aix-Marseille III - Ecole des Hautes Etudes en Sciences Sociales - CNRS : UMR6579); Olivier Chanel (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - Université de la Méditerranée - Aix-Marseille II - Université Paul Cézanne - Aix-Marseille III - Ecole des Hautes Etudes en Sciences Sociales - CNRS : UMR6579); Stephane Luchini (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - Université de la Méditerranée - Aix-Marseille II - Université Paul Cézanne - Aix-Marseille III - Ecole des Hautes Etudes en Sciences Sociales - CNRS : UMR6579) |
| Abstract: | We explore the influence of a neutral cheap talk script in three typical scenarios used in the CV literature devoted to the valuation of air pollution effects. We show that cheap talk has a differentiated effect depending on the scenario implemented. It decreases protest responses with no effect on WTP values in the scenario based on a new drug. When a move to a less polluted city is involved, it has no effect on protest responses but decreases WTP values. Surprisingly, cheap talk increases protest responses but decreases WTP values when new regional air pollution regulations are at stake. |
| Keywords: | Willingness to pay ; contingent valuation ; cheap talk ; context ; field experiment ; air pollution |
| Date: | 2009–05–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00382511_v1&r=env |
| By: | Frédéric Barraquand; Vincent Martinet |
| Abstract: | Land use change is a main driver of biodiversity erosion, especially in agricultural landscapes. Incentive-based land-use policies aim at influence land-use pattern, and are usually evaluated with habitat suitability scores, without accounting explicitly for the ecology of the studied population. In this paper, we propose a methodology to define and evaluate agricultural land-use policies with respect to their ecological outcomes directly. We use an ecological-economic model to link the regional abundance of a bird species to the economic context. Policies based on such ecological economics approaches appear to be more efficient than that based on landscape evaluation, from both economic and ecological viewpoints. |
| Keywords: | Ecological-economic model, agriculture, land-use, landscape, conservation |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2009-18&r=env |
| By: | Brännlund, Runar (Department of Economics, Umeå University); Lundberg, Sofia (Department of Economics, Umeå University); Marklund, Per-Olov (Department of Economics, Umeå University) |
| Abstract: | Public procurement is officially regarded as an effective means to secure environmental improvement. Estimates by the European Commission indicate that public authorities within the European Union typically purchase goods and services corresponding to approximately 16 percent of GNP per annum. Hence, it is believed, private firms can be stimulated to invest in sustainable production technologies if the market power of public bodies is exerted through Green Public Procurement (GPP) policies. In this paper we assess whether GPP is a cost-efficient policy tool, and if so whether its implementation can, from a welfare perspective, deter or stimulate entry to procurement markets. |
| Keywords: | Competitive Bidding; Cost-efficiency; Procurement auctions; Sustainability |
| JEL: | H57 Q01 Q28 |
| Date: | 2009–05–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:umnees:0775&r=env |
| By: | Alan Barreca (Department of Economics, Tulane University) |
| Abstract: | Using data from the United States (c. 1968-2002), this paper estimates the effects of temperature and humidity on mortality rates in order to contribute insight into the potential costs of climate change. Previous research on the health effects of climate change has focused on the impact of temperature changes; this is the first research (that I know) to examine the potential consequences of humidity changes. This analysis leads to five important results: First, I find that failure to control for humidity overstates the importance of cold temperature as a determinant of mortality. Second, I find that there is a reverse-J shaped temperature-mortality relationship, and a reverse-J shaped humidity-mortality relationship. Third, the adverse effects from exposure to cold temperatures and low-humidity levels are both large and statistically significant. Fourth, interacted temperature-humidity models (e.g. ``hot and humid'') produce similar estimates to non-interacted models (e.g. ``hot'' or ``humid''). Fifth, the effects are largest for cardiovascular and respiratory deaths and for individuals over 45 years of age. On the whole, these results imply that climate change may actually reduce mortality rates in the U.S. by a small amount in the coming decades; however, I demonstrate that failing to control for humidity overstates the health benefits of climate change. |
| Keywords: | climate change, humidity, temperature, mortality, health |
| JEL: | I12 I18 Q40 Q54 |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:tul:wpaper:0906&r=env |
| By: | Els Wynen |
| Abstract: | Some consumers and environmentalists espouse purchasing food that is produced locally or nationally. An appealing expression of this is the “food miles” concept, which reflects the aim of minimizing the distance food has traveled before reaching the consumer. The concept of food miles is flawed because it ignores the costs of production, the mode and scale of transport, and the importance of other inputs such as capital and labor. Nonetheless, the notion has become popular recently with the rise in the costs of both food and transport. Indeed, some organizations that set standards for organic certification are considering incorporating, or have already incorporated, food miles into their standards, including a ban on air freighted goods. As a result, exporters, including those in some developing countries, may lose their markets in developed countries, especially in Europe. This approach may make consumers and foreign producers worse off, and may lead to increases in global energy use and emissions, contrary to the stated objectives.[ADBI WP NO 118] |
| Keywords: | Consumers; environmentalists; non-renewable sources; organic agriculture; Soil Association’s; Ethical Trade; Fairtrade Foundation’s standard; UK Department for Environment, Food and Rural Affairs; Indicator of Sustainable Development; consumer price; consumer behavior; unpriced externalities; tariff barriers; climate change;Food security; UNCTAD; emission levels |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:1942&r=env |
| By: | Nelly Petkova |
| Abstract: | Medium-term approaches to budgeting are now common in OECD countries and are being adopted increasingly by developing countries. This reflects a realisation that the annual approach to budget making actually undermines budgetary performance, contributing to fiscal instability and, perhaps even more fundamentally, to resource misallocation and the inefficient and ineffective use of resources. The purpose of this study has been to analyse how multi-year budgetary processes work in practice in both high income OECD countries and in aid-receiving countries, with a view to identifying the opportunities for, and limits to, financing environmental management. It also provides suggestions to the donor community on how to make better use of multi-year budgeting when providing general support to the budgets of developing countries in order to ensure that environment is included in this process. In this context, the report may be of interest to various audiences. On the one hand, representatives of the ministries of environment and other relevant government agencies with responsibilities for environmental and natural resource management who struggle to prepare medium-term budgets may find this analysis useful. On the other hand, the report is targeted at experts from the ministries of finance and economy who are charged with assessing environmental programmes and taking decisions for their financing. The third target group are those donors who even if they are moving to direct budget support, may still be concerned that the environment sector is adequately funded.<BR>La budgétisation à moyen terme est désormais courante dans les pays de l’OCDE, et les pays en développement y ont de plus en plus recours. On s’est rendu compte, en effet, que la budgétisation annuelle nuisait en réalité à l’exécution du budget, favorisant l’instabilité budgétaire et, de manière peutêtre encore plus fondamentale, une mauvaise allocation et une utilisation inefficace des ressources. La présente étude a pour objet de voir comment la budgétisation pluriannuelle fonctionne concrètement dans les pays de l’OCDE à revenu élevé et dans les pays qui bénéficient d’une aide, afin de déterminer les possibilités et les limites en matière de financement de la gestion environnementale. La communauté des donateurs y trouvera également des propositions quant aux moyens de mieux exploiter la budgétisation pluriannuelle, lors du versement d’une aide budgétaire générale aux pays en développement, pour que l’environnement soit pris en compte dans ce processus. Par conséquent, l’étude est susceptible d’intéresser des publics divers. Tout d’abord, les fonctionnaires chargés d’établir les budgets à moyen terme dans les ministères de l’environnement et autres organismes publics jouant un rôle dans la gestion de l’environnement et des ressources naturelles y trouveront sans doute des informations utiles. Ensuite, l’étude est destinée aux experts des ministères de l’économie et des finances qui s’occupent d’évaluer les programmes de protection de l’environnement et de se prononcer sur leur financement. Enfin, le troisième public visé est celui des donateurs qui, bien que s’orientant vers l’aide budgétaire directe, continuent de veiller à ce que le secteur de l’environnement perçoive un financement suffisant. |
| Keywords: | budget systems, coopération pour le développement, direct budget support, aide budgétaire directe, environmental public expenditure management, programmes d’investissement en matière d’environnement, environmental management, environmental investment programmes, development cooperation, cadres de dépenses à moyen terme, medium-term budgeting, medium-term expenditure frameworks, gestion environnementale, gestion des dépenses publiques de protection de l’environnement |
| JEL: | E61 H61 O13 O19 Q01 Q56 Q57 |
| Date: | 2009–05–14 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:7-en&r=env |
| By: | MacKenzie, Ian A.; Hanley, Nick |
| Abstract: | The establishment of a tradable permit market requires the regulator to select a level of aggregate emissions and then distribute the associated permits (rent) to specific groups. In most circumstances, these decisions are often politically contentious and frequently influenced by rent seeking behaviour. In this paper, we use a contest model to analyse the effects of rent seeking effort when permits are freely distributed (grandfathered). Rent seeking behaviour can influence both the share of permits which an individual firm receives and also the total supply of permits. This latter impact depends on the responsiveness of the regulator to aggregate rent seeking effort. Using a three-stage game, we show that rent seeking can influence both the distribution of rents and the ex post value of these rents, whilst welfare usually decreases in the responsiveness of the regulator. |
| Keywords: | initial allocation; rent seeking; tradable permit market |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:stl:stledp:2009-12&r=env |
| By: | James Roumasset (Department of Economics, University of Hawaii at Manoa); Christopher Wada (Department of Economics, University of Hawaii at Manoa) |
| Abstract: | Although the economics of groundwater management is typically modelled as a single aquifer serving a single group of consumers, resource managers must often decide how to manage multiple aquifers simultaneously. We propose a temporal and spatial model to determine the efficient allocation of groundwater when two coastal aquifers are available for exploitation. Along the optimal trajectory extraction may switch from single to simultaneous use, depending on how the total marginal cost of each resource evolves over time. A numerical simulation for the South Oahu aquifer system illustrates the switching behavior. |
| Keywords: | Renewable resources, dynamic optimization, multiple resources |
| JEL: | Q25 Q28 C61 |
| Date: | 2009–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:hai:wpaper:200902&r=env |
| By: | Fan Zhai |
| Abstract: | Capitalizing on the most recent worldwide estimates of the impacts of climate change on agricultural production, this paper assesses the economic effects of climate change for Southeast Asian countries through 2080. The results suggest that the aggregate impacts of agricultural damages caused by climate change on the global economy are moderate.However, the uneven distribution of productivity losses across global regions would bring significant structural adjustments in worldwide agricultural production and trade, ultimately leaving the developing world as a net loser. With the anticipated declining agricultural share in the economy, a reduction in agricultural productivity would have small, but non-negligible negative impacts on Southeast Asia’s economic output. However, the expected increase of crop import dependence in the coming decades would make most Southeast Asian economies suffer more welfare losses through deteriorated terms of trade. Depending on a country’s economic structure, the negative effects are expected to be less for Singapore and Malaysia, but greater for Philippines, Indonesia, Thailand, and Viet Nam. For Southeast Asia to cope with the potential agricultural damages arising from the expected changes in climate the region must concentrate on reversing its current trend of declining agricultural productivity.[ADBI WP NO 131] |
| Keywords: | atmospheric concentration; Intergovernmental Panel of Climate Change; Green Revolution; computable general equilibrium; evaporation; precipitation; AEZ analysis; Ricardian cross-sectional approach; Agricultural Productivity; Linkage; An Implicitly Direct Additive Demand System; Global Trade Analysis Project; International Monetary Fund’s; Baseline Agricultural Productivity Growth; Global Trade Analysis Project; Global cross-country analysis; agricultural damages; counterfactual scenario |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:1944&r=env |
| By: | Nikhil Agarwal; Chanont Banternghansa; Linda Bui |
| Abstract: | We examine the effect of exposure to toxic releases that are tracked by the Toxic Release Inventory (TRI) on county-level infant and fetal mortality rates in the United States between 1989-2002. We find significant adverse effects of TRI concentrations on infant mortality rates, but not on fetal mortality rates. In particular, we estimate that the average county-level decrease in aggregate TRI concentrations saved in excess of 25,000 infant lives from 1989-2002. Using a value of life of $1.8M - $8.7M, the savings in lives would be valued at $45B - $217.5B. We also find that the effect of toxic exposure on health outcomes varies across pollution media: air pollution has a larger impact on health outcomes than either water or land. And, within air pollution, releases of carcinogens are particularly problematic for infant health outcomes. We do not, however, find any significant effect on health outcomes from exposure to two criteria air pollutants – PM10 and ozone. |
| JEL: | I12 Q51 |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:14977&r=env |
| By: | Jose Angelo Divino (Department of Economics Catholic University of Brasilia); Michael McAleer (Universidad Complutense de Madrid.Department of Quantitative Economics) |
| Abstract: | The Amazon rainforest is one of the world’s greatest natural wonders and holds great importance and significance for the world’s environmental balance. Around 60% of the Amazon rainforest is located in the Brazilian territory. The two biggest states of the Amazon region are Amazonas (the upper Amazon) and Pará (the lower Amazon), which together account for around 73% of the Brazilian Legal Amazon, and are the only states that are serviced by international airports in Brazil’s North region. The purpose of this paper is to model and forecast sustainable international tourism demand for the states of Amazonas, Pará, and the aggregate of the two states. By sustainable tourism is meant a distinctive type of tourism that has relatively low environmental and cultural impacts. Economic progress brought about by illegal wood extraction and commercial agriculture has destroyed large areas of the Amazon rainforest. The sustainable tourism industry has the potential to contribute to the economic development of the Amazon region without destroying the rainforest. The paper presents unit root tests for monthly and annual data, estimates alternative time series models and conditional volatility models of the shocks to international tourist arrivals, and provides forecasts for 2006 and 2007. |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ucm:doicae:0913&r=env |
| By: | Aline Chiabai (Fondazione Eni Enrico Mattei); C. M. Travisi (Fondazione Eni Enrico Mattei); H. Ding (FEEM, and School for Advanced Studies in Venice Foundation, University of Venice); A. Markandya (Basque Centre for Climate Change BC3 and University of Bath); P.A.L.D Nunes (FEEM and School for Advanced Studies in Venice Foundation, University of Venice) |
| Abstract: | By using ad hoc value transfer protocols, this paper offers a methodological contribution and provides accurate per hectare estimates of the economic value of some selected ecosystem services for all forest biomes in the world, identified following the Millennium Ecosystem Assessment taxonomy MEA. The research also estimates potential total economic losses from policy inaction in year 2050. Final results show that total losses are significant. The total figure is €78 billion, the greatest losses coming from North America and Mexico, followed by Africa, Russia and some Asiatic countries. Most of this loss is attributable to provisioning services and carbon sequestration, while only a minor part is due to loss of cultural services. In terms of biomes the greatest losses are from boreal and warm mixed forests, followed by tropical forests. These results may be surprising to some who argue that it is the loss of tropical forests, particularly the Amazon, that is the most significant. A detailed analysis, shows, however, that this is not the case. The best estimates point to greater losses in areas where use and non-use values are highest, which includes North America. |
| Keywords: | Forest, Ecosystem Services, Biodiversity, Valuation, Value Transfer |
| JEL: | O13 Q23 Q26 Q51 Q54 Q57 |
| Date: | 2009–02 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2009.12&r=env |
| By: | Djamel Kirat (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris); Ibrahim Ahamada (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris) |
| Abstract: | In order to comply with their commitments under the Kyoto Protocol, France and Germany participate to the European Union Emission Trading Scheme (EU ETS) which concerns predominantly electricity generation sectors. In this paper we seek to know if the EU ETS gives appropriate economic incentives for an efficient and strong system in line with Kyoto commitments. Because if so electricity producers in these countries should include the price of carbon in their costs functions. After identifying the different sub periods of the EU ETS during its pilot phase (2005-2007), we model the prices of various electricity contracts and look at their volatilities around their fundamentals while evaluating the correlation between the electricity prices in the two countries. We find that electricity producers in both countries were constrained to include the carbon price in their cost functions during the first two years of operation of the EU ETS. During this period, German electricity producers were more constrained than their French conterparts and the inclusion of the carbon price in the cost function of electricity generation has been so much more stable in Germany than in France. Furthermore, the European market for emission allowances has increased the market power of the historical French electricity producer and has greatly contributed to the partial alignment of the wholesale price of electricity in France with those of Germany. |
| Keywords: | Carbon Emission Trading, multivariate GARCH models, structural break, non parametric approach, energy prices. |
| Date: | 2009–04 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-00384496_v1&r=env |
| By: | Djamel Kirat (Centre d'Economie de la Sorbonne - Paris School of Economics); Ibrahim Ahamada (Centre d'Economie de la Sorbonne - Paris School of Economics) |
| Abstract: | In order to comply with their commitments under the Kyoto Protocol, France and Germany participate to the European Union Emission Trading Scheme (EU ETS) which concerns predominantly electricity generation sectors. In this paper we seek to know if the EU ETS gives appropriate economic incentives for an efficient and strong system in line with Kyoto commitments. Because if so electricity producers in these countries should include the price of carbon in their costs functions. After identifying the different sub periods of the EU ETS during its pilot phase (2005-2007), we model the prices of various electricity contracts and look at their volatilities around their fundamentals while evaluating the correlation between the electricity prices in the two countries. We find that electricity producers in both countries were constrained to include the carbon price in their cost functions during the first two years of operation of the EU ETS. During this period, German electricity producers were more constrained than their French conterparts and the inclusion of the carbon price in the cost function of electricity generation has been so much more stable in Germany than in France. Furthermore, the European market for emission allowances has increased the market power of the historical French electricity producer and has greatly contributed to the partial alignment of the wholesale price of electricity in France with those of Germany. |
| Keywords: | Carbon emission trading, multivariate GARCH models, structural break, non parametric approach, energy prices. |
| JEL: | C14 C32 C51 Q49 Q58 |
| Date: | 2009–04 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:09025&r=env |
| By: | John Curtis (EPA); Sean Lyons (ESRI); Abigail O'Callaghan-Platt (Trinity College Dublin) |
| Abstract: | Ireland has signed up to ambitious targets for diverting municipal solid waste from landfill. These targets are likely to be very difficult to meet without substantial changes to the way household waste is collected and managed. Data on household waste management behaviour in Ireland is scarce, and policymaking could benefit from improved data and market analysis. In this paper we use data from the EPA and CSO to estimate econometric models of household waste collection in Ireland, providing national estimates of income elasticities of demand, price elasticities where unit charges are in place, effects of imposing weight-based charging and effects of other important changes to service characteristics. These results are then used in a simulation model to illustrate the likely effects of some current policy options. |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp295&r=env |
| By: | Das, Nimai |
| Abstract: | This empirical study assesses the impact of community-based initiative under gender sensitive joint forest management (JFM) programme on sustainable rural livelihoods (SRL) across the socio-economic groups of forest fringe community based on JFM and non-JFM villages. The study suggests that strong livelihood sustainability criteria within the SRL framework meets for all marginal landholding and landless categories of households, which live below poverty line and that are almost dependent on forest resource for their livelihood security. The study also suggests that law or force can not effectively control the illegal collection of timber forest products (TFPs) for this poor households until and unless a considerable increase in the legal forest products (non-timber forest products like sal leaves and fuel wood) and wage income from forest meets their minimum livelihood security. |
| Keywords: | Joint forest management programme; gender sensitive forest management groups; sustainable rural livelihood framework; five capital assets; forest income. |
| JEL: | Q23 Q51 Q01 D78 Q12 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:15305&r=env |
| By: | Anil K Gupta |
| Abstract: | "The paper discusses the major knowledge gaps, stress the importance of peer learning and building upon farmers’ own innovations and suggest new initiatives for transforming extension strategies. The author also argues that focus only on primary production in agricultural will not be viable in the long run. Value addition is necessary and extension for the purpose requires lot of action research. Village Knowledge Management Systems (VKMS) need to be developed for which a proposal has already been submitted to the Department of Science and Technology. An outline of the same is given in the paper to trigger further discussion. Farmers suicides in many states should have warranted a review of extension strategies much earlier. The proposed model aims to develop and monitor early warning signals of the socio ecological stress and recommend real time solutions.[IIMA- WP NO- 2009-03-05]" |
| Keywords: | knowledge management; horizontal knowledge networks;long term sustainability; Honey Bee Network; sustainable agriculture; natural resource management; private and common property rights institutions; non-monetary technologies; Knowledge gaps; National Centre for Integrated Pest Management; Transferring Science for Development and Diffusion of Dryland Technology; Newsweek; indicators of sustainability; Central Scientific Instruments Organization; micro level weather data |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:1953&r=env |