nep-env New Economics Papers
on Environmental Economics
Issue of 2009‒07‒17
twelve papers chosen by
Francisco S.Ramos
Federal University of Pernambuco

  1. Emissions Trading: What Makes It Work? By Julien Chevallier
  2. ENVIRONMENTAL SURROUNDINGS AND PERSONAL WELL-BEING IN URBAN CHINA By Russell Smyth; Ingrid Nielsen; Qingguo Zhai; Tiemin Liu; Yin Liu; C.Y. Tang; Zhihong Wang; Zuxiang Wang; Juyong Zhang
  3. Clean Water Should Be Recognized as a Human Right By PLoS Medicine
  4. Sensitivity of Carbon Emission Estimates from Indirect Land-Use Change By Jerome Dumortier; Dermot J. Hayes; Miguel Carriquiry; Fengxia Dong; Xiaodong Du; Amani Elobeid; Jacinto F. Fabiosa; Simla Tokgoz
  5. Sensitivity of Carbon Emission Estimates from Indirect Land-Use Change By Dumortier, Jerome; Hayes, Dermot J.; Carriquiry, Miguel A.; Dong, Fengxia; Du, Xiaodong (Sheldon); Elobeid, Amani; Fabiosa, Jacinto F.; Tokgoz, Simla
  6. Report on Utilisation of Funds and Assets Created Through Ganga Action Plan in States Under GAP By Kirit Parikh
  7. Market Power in Pollution Permit Markets By Juan Pablo Montero
  8. International Entrepreneurship and Technology Transfer: The CDM´s Reality in China By Aleluia, João; Leitão, João
  9. Assessing farmer’s Pesticide Safety Knowledge in cotton growing area of Punjab, Pakistan By Khan, Muhammad; Husnain, Muhammad Iftikhar Ul; Akram, Naeem; Padda, Ihtsham Ul Haq
  10. A Dynamic Analysis of the Green Electricity Fund:Threshold Models Revisited By Nobuyuki Ito; Kenji Takeuchi; Takahiro Tsuge; Atsuo Kishimoto
  11. A Hurricane’s Long-Term Economic Impact: the Case of Hawaii’s Iniki By Makena Coffman; Ilan Noy
  12. Cost-sharing Incentive Programs for Source Water Protection: The Grand River’s Rural Water Quality Program By Diane P. Dupont

  1. By: Julien Chevallier (EconomiX - CNRS : UMR7166 - Université de Paris X - Nanterre)
    Abstract: At the stage of international post-Kyoto negotiations, the adoption of ambitious public policies raises an increasing interest, as society has a whole is more concerned by the scale of damages and the potential irreversibilities linked to climate change. The introduction of a tradable permits market in Europe on January 1, 2005, in order to provide incentives to Member-States to take early abatement measures, may be seen as a decisive first step towards that direction. The creation of the EU ETS has indeed revealed the key role played by the European Union in the preservation of the global public good that constitutes the climate. Following a review of current climate policies, and of the negotiations under way at the international level, this article critically discusses the main advantages of introducing environmental regulation tools such as tradable permits markets.
    Keywords: climate change policy; emissions trading; banking borrowing; initial allocation; safety valve
    Date: 2009–07–04
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00401725_v1&r=env
  2. By: Russell Smyth; Ingrid Nielsen; Qingguo Zhai; Tiemin Liu; Yin Liu; C.Y. Tang; Zhihong Wang; Zuxiang Wang; Juyong Zhang
    Abstract: We examine the relationship between atmospheric pollution, water pollution, traffic congestion, access to parkland and personal well-being using a survey administered across six Chinese cities in 2007. In contrast to existing studies of the determinants of well-being by economists, which have typically employed single item indicators to measure well-being, we use the Personal Well-Being Index (PWI). We also employ the Job Satisfaction Survey (JSS) to measure job satisfaction, which is one of the variables for which we control when examining the relationship between environmental surroundings and personal well-being. Previous research by psychologists has shown the PWI and JSS to have good psychometric properties in western and Chinese samples. A robust finding is that in cities with higher levels of atmospheric pollution and traffic congestion, respondents report lower levels of personal well-being ceteris paribus. We find that a one standard deviation increase in suspended particles or sulphur dioxide emissions is roughly equivalent to a 12-13 percent reduction in average monthly income in the six cities. This result suggests that the personal well-being of China’s urban population can be enhanced if China were to pursue a more balanced growth path which curtailed atmospheric pollution.
    Keywords: China, Environment, Pollution, Personal Well-Being.
    JEL: A13 D60
    Date: 2009–06
    URL: http://d.repec.org/n?u=RePEc:mos:moswps:2008-32&r=env
  3. By: PLoS Medicine
    Abstract: Access to clean water should be declared a basic human right for three reasons. First, access to clean water can substantially reduce the global burden of disease caused by water-borne infections. Second, the privatization of water—as witnessed in Bolivia, Ghana, and other countries—has not effectively served the poor, who suffer the most from lack of access to clean water. Third, the prospect of global water scarcity—exacerbated by climate change, industrial pollution, and population growth—means that no country is immune to a water crisis.
    Keywords: clean water, human right, burden of diseases, water-borne, privatization global water scarcity, industrial pollution, climate change, immune, population growth, UN, Africa, hygiene,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ess:wpaper:id:2126&r=env
  4. By: Jerome Dumortier; Dermot J. Hayes (Center for Agricultural and Rural Development (CARD); Food and Agricultural Policy Research Institute (FAPRI)); Miguel Carriquiry (Center for Agricultural and Rural Development (CARD); Food and Agricultural Policy Research Institute (FAPRI)); Fengxia Dong (Center for Agricultural and Rural Development (CARD); Food and Agricultural Policy Research Institute (FAPRI)); Xiaodong Du (Center for Agricultural and Rural Development (CARD); Food and Agricultural Policy Research Institute (FAPRI)); Amani Elobeid (Center for Agricultural and Rural Development (CARD); Food and Agricultural Policy Research Institute (FAPRI)); Jacinto F. Fabiosa (Center for Agricultural and Rural Development (CARD); Food and Agricultural Policy Research Institute (FAPRI)); Simla Tokgoz
    Abstract: We analyze the sensitivity of greenhouse gas (GHG) emissions from land-use change to modifications in assumptions concerning crop area, yield, and deforestation. For this purpose, we run a modified version of the Center for Agricultural and Rural Development (CARD) Agricultural Outlook Model, which was used previously to assess the impacts of energy price increases and biofuel policy changes on land conversion. To calculate the GHG implications of agricultural activity, we use GreenAgSiM, a model developed to evaluate emissions from land conversion and agricultural production. Both models are applied to scenarios that lead to higher US ethanol production. The results are contrasted with the findings of Searchinger et al., and we explain the role of model assumptions to elucidate the differences. We find that the payback period of corn ethanol's carbon debt is sensitive to assumptions concerning land conversion and yield growth and can range from 31 to 180 years.
    Keywords: biofuel, crop yield, greenhouse gas emissions, indirect land-use change.
    Date: 2009–07
    URL: http://d.repec.org/n?u=RePEc:ias:cpaper:09-wp493&r=env
  5. By: Dumortier, Jerome; Hayes, Dermot J.; Carriquiry, Miguel A.; Dong, Fengxia; Du, Xiaodong (Sheldon); Elobeid, Amani; Fabiosa, Jacinto F.; Tokgoz, Simla
    Abstract: We analyze the sensitivity of greenhouse gas (GHG) emissions from land-use change to modifications in assumptions concerning crop area, yield, and deforestation. For this purpose, we run a modified version of the Center for Agricultural and Rural Development (CARD) Agricultural Outlook Model, which was used previously to assess the impacts of energy price increases and biofuel policy changes on land conversion. To calculate the GHG implications of agricultural activity, we use GreenAgSiM, a model developed to evaluate emissions from land conversion and agricultural production. Both models are applied to scenarios that lead to higher US ethanol production. The results are contrasted with the findings of Searchinger et al., and we explain the role of model assumptions to elucidate the differences. We find that the payback period of corn ethanol’s carbon debt is sensitive to assumptions concerning land conversion and yield growth and can range from 31 to 180 years.
    Keywords: biofuel, crop yield, greenhouse gas emissions, indirect land-use change.
    Date: 2009–07–10
    URL: http://d.repec.org/n?u=RePEc:isu:genres:13090&r=env
  6. By: Kirit Parikh
    Abstract: The Ganga Action Plan (GAP) was launched by the Government of India in the year 1985 with the objective of abatement of pollution in the river Ganga due to discharge of sewage into the river from the point as well as non-point sources. The plan was renamed the National Conservation Plan (NCRP) in the year 1995 and was broad-based to tackle pollution levels in the other identified polluted stretches of major rivers, for improving their waste quality to the bathing quality standards. The approach of GAP was to create sewage treatment plants in the cities along the Ganga so that no untreated sewage is discharged into the river. This was expected to bring the quality of the river water to a desired level.
    Keywords: River Ganga; Ganga Action Plan; Funds; Assets; Water; Water resources; Water Quality; Water Pollution; Sewage; Sewage Treatment Plants; Domestic Sewage; National River Conservation Plan; Sewage Generation
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ess:wpaper:id:2110&r=env
  7. By: Juan Pablo Montero (Instituto de Economía. Pontificia Universidad Católica de Chile.)
    Abstract: As with other commodity markets, markets for trading pollution permits have not been immune to market power concerns. In this paper, I survey the existing literature on market power in permit trading but also contribute with some new results and ideas. <br><br>I start the survey with Hahn’s (1984) dominant-firm (static) model that I then extend to the case in which there are two or more strategic firms that may also strategically interact in the output market, to the case in which current permits can be stored for future use (as in most existing and proposed market designs), to the possibility of collusive behavior, and to the case in which permits are auctioned off instead of allocated for free to firms. <br><br>I finish the paper with a review of empirical evidence on market power, if any, with particular attention to the U.S. sulfur market and the Southern California NOx market.
    Keywords: Market power, emissions trading, pollution permits, storable permits.
    JEL: D40 L13 Q58
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ioe:doctra:355&r=env
  8. By: Aleluia, João; Leitão, João
    Abstract: Entrepreneurship as a determinant of economic growth and innovation intensity has been increasingly used by governments for shaping public policies with sustainable development purposes. This chapter positions the Clean Development Mechanism as an example of an international technology transfer mechanism that can stimulate knowledge spillovers in the host economies. Taking as reference the Chinese context, a benchmarking approach is proposed to assess the performance of distinct mechanisms of climate friendly technology transfers. This is particularly relevant since it is an innovative attempt for addressing the caveat found in the literature of international entrepreneurship and technology transfer, especially focused in the need for developing both qualitative and quantitative analyses about distinct experiences in adopting technology transfer mechanisms into developing countries. This is useful not only in the scope of global efforts to mitigate the emission of greenhouse gases, but also in the accomplishment of sustainable development goals of host economies. Moreover, from the current proposal an operative tool is derived for guiding the action of policy makers, managers and practitioners engaged in the field of Energy Entrepreneurship.
    Keywords: Benchmarking; Clean Development Mechanism; CDM; International Entrepreneurship; Technology Transfer.
    JEL: O34 F23 L26 L24
    Date: 2009–06–15
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:16150&r=env
  9. By: Khan, Muhammad; Husnain, Muhammad Iftikhar Ul; Akram, Naeem; Padda, Ihtsham Ul Haq
    Abstract: A pesticide safety knowledge test was developed to assess farmer’s knowledge related to pesticide safety. Yes-No (true-false) type 25 item, test, was constructed and used in a sample of 162 pesticide applicator in two districts of southern Punjab Pakistan. The overall mean score was 17.2(72%). More educated and adult respondents performed better than younger and illiterate. Similarly large land holder scored higher than small landholders, indicating their more access to information and extension. Overall ten Items received less than 50% correct response. The result shows that farmers have reasonably good knowledge but it still has to see, to what extent that knowledge is being used practically. It could possibly be the future research topic.
    Keywords: Health cost; Environmental cost; Pesticide knowledge; pesticide safety
    JEL: Q50 I12 Q57
    Date: 2009–07–13
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:16220&r=env
  10. By: Nobuyuki Ito (Graduate School of Economics, Kobe University, Japan); Kenji Takeuchi (Graduate School of Economics, Kobe University); Takahiro Tsuge (Faculty of Economics, Konan University, Japan); Atsuo Kishimoto (National Institute of Advanced Industrial Science and Technology, Japan)
    Abstract: This study applies a threshold model proposed by Granovetter (1978) to analyze the dynamic diffusion process of donating behavior for renewable energy. Using data on people's willingness to donate for renewable energy under various predicted participation rates, we simulate how herd behavior spreads and the participation rate reaches the equilibrium. The participation rate at the equilibrium is estimated as 66.46% when the suggested donation is 500 yen, while it is 25.88% when the suggested amount is 1,000 yen. The influence of environmentalism and altruism is also examined, and we find that these motivations increase the participation rate 43.38% on average.
    Keywords: Green electricity fund; Dynamic analysis; Contingent Valuation; Threshold model
    JEL: H41 Q42 Q51
    Date: 2009–06
    URL: http://d.repec.org/n?u=RePEc:koe:wpaper:0909&r=env
  11. By: Makena Coffman (Department of Urban and Regional Planning, University of Hawaii at Manoa; University of Hawaii Economic Research Organization); Ilan Noy (Department of Economics, University of Hawaii at Manoa)
    Abstract: The importance of understanding the macro-economic impact of natural disasters cannot be overstated. Hurricane Iniki, that hit the Hawaiian island of Kauai on September 11th, 1992, offers an ideal case study to better understand the long-term economic impacts of a major disaster. Iniki is uniquely suited to provide insights into the long-term economic impacts of disaster because (1) there is now seventeen years of detailed post-disaster economic data and (2) a nearby island, Maui, provides an ideal control group. Hurricane Iniki was the strongest hurricane to hit the Hawaiian Islands in recorded history, and wrought an estimated 7.4 billion (2008 US$) in initial damage. Here we show that Kauai’s economy only returned to pre-Iniki levels 7-8 years after the storm; though 17 years later, it has yet to recover in terms of its population and labor force. As we document, these long-term adverse impacts of disasters are ‘hidden.’ They are not usually treated as ‘costs’ of disasters, and are ignored when cost-benefit analysis of mitigation programs is used, or when countries, states, and islands attempt to prepare, financially and otherwise, to the possibility of future events.
    Keywords: natural disasters, hurricane, Iniki, Kauai, Hawaii
    JEL: Q54 R50
    Date: 2009–06–01
    URL: http://d.repec.org/n?u=RePEc:hai:wpaper:200905&r=env
  12. By: Diane P. Dupont (Department of Economics, Brock University)
    Abstract: Canadian provinces have become increasingly concerned with possible contamination of water from upstream agricultural activities. Many see watershed-based source protection, so called “source-to-tap†programs, as a means of improving water quality. A key factor in the success of these programs is the extent to which they provide incentives to farmers to undertake actions that ultimately result in a reduction of non-point source pollution. One type of program is cost-sharing whereby farmers are reimbursed for out-of-pocket expenses relating to best management practices which are expected to reduce runoff into water courses. Given increasing reliance on these types of programs, it is necessary from a public policy perspective to identify design features leading to the greatest likelihood of farmer participation. This paper examines Ontario’s Rural Water Quality Program for the Grand River using data from the first seven years of its operation, along with data from Agricultural Canada’s Farm Census, to model and estimate participation rates. Significantly positive determinants include: the maximum grant available and performance incentives, although both with diminishing returns. Projects with a one-time capital subsidy alone are much less likely to encourage participation than projects that combine a subsidy with a performance incentive.
    Keywords: cost-sharing; non-point source pollution; best management practices; economic incentives;
    JEL: Q25 Q57 Q58
    Date: 2009–06
    URL: http://d.repec.org/n?u=RePEc:brk:wpaper:0905&r=env

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