|
on Environmental Economics |
| By: | Williams, Dawson |
| Keywords: | carbon, greenhouse gas emissions, agribusiness, carbon market, Agribusiness, Environmental Economics and Policy, Q, D, |
| Date: | 2009–06–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:usdags:54576&r=env |
| By: | Adriaan Perrels; Kirsi Usva; Mikko Hongisto; Merja Saarinen; Ari Nissinen; Juha-Matti Katajajuuri; Pauliina Nurmi; Sirpa Kurppa; Sirkka Koskela |
| Abstract: | This report is a part of a series of reports from the Climate Bonus project. The report illustrates the basic structure of a system that could produce strict and reliable data needed for generating product-oriented carbon footprints in Finland. It also represents a road map for developing the system for the energy and food sectors. Steering mechanisms, standards and possible data sources central to the system are also reviewed. Accuracy and a scope of the outlined system should be developed step by step, starting from the major emission sources, processes and products. Account has also been taken of linkages between the proposed system and existing environmental management systems, annual reporting practices and the European emission-trading scheme (EU-ETS). |
| Keywords: | Greenhouse gases (GHG), carbon footprint, indirect emissions, life cycle assessment (LCA), input-output modelling, monitoring of emissions, verification, guarantee of origin, environmental product declaration (EPD), product certification, supply chain management |
| JEL: | Q49 Q01 Q56 Q54 Q19 O13 O31 Q55 O33 |
| Date: | 2009–10–30 |
| URL: | http://d.repec.org/n?u=RePEc:fer:resrep:143:2&r=env |
| By: | Juri Hinz (Department of Mathematics, National University of Singapore); Alex Novikov (Department of Mathematical Sciences, University of Technology, Sydney) |
| Abstract: | The climate rescue is on the top of many agendas. In this context, emission trading schemes are considered as promising tools. The regulatory framework of an emission trading scheme introduces a market for emission allowances and creates need for risk management by appropriate financial contracts. In this work, we address logical principles underlying their valuation. |
| Keywords: | environmental risk; emission derivatives |
| Date: | 2009–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:uts:rpaper:257&r=env |
| By: | Mattoo, Aaditya; Subramanian, Arvind; van der Mensbrugghe, Dominique; He, Jianwu |
| Abstract: | Most economic analyses of climate change have focused on the aggregate impact on countries of mitigation actions. The authors depart first in disaggregating the impact by sector, focusing particularly on manufacturing output and exports because of the potential growth consequences. Second, they decompose the impact of an agreement on emissions reductions into three components: the change in the price of carbon due to each country’s emission cuts per se; the further change in this price due to emissions tradability; and the changes due to any international transfers (private and public). Manufacturing output and exports in low carbon intensity countries such as Brazil are not adversely affected. In contrast, in high carbon intensity countries, such as China and India, even a modest agreement depresses manufacturing output by 6-7 percent and manufacturing exports by 9-11 percent. The increase in the carbon price induced by emissions tradability hurts manufacturing output most while the Dutch disease effects of transfers hurt exports most. If the growth costs of these structural changes are judged to be substantial, the current policy consensus, which favors emissions tradability (on efficiency grounds) supplemented with financial transfers (on equity grounds), needs re-consideration. |
| Keywords: | Climate Change Mitigation and Green House Gases,Climate Change Economics,Environment and Energy Efficiency,Energy and Environment,Carbon Policy and Trading |
| Date: | 2009–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5121&r=env |
| By: | Kousky, Carolyn; Rostapshova, Olga; Toman, Michael; Zeckhauser, Richard |
| Abstract: | There is a low but uncertain probability that climate change could trigger"mega-catastrophes,"severe and at least partly irreversible adverse effects across broad regions. This paper first discusses the state of current knowledge and the defining characteristics of potential climate change mega-catastrophes. While some of these characteristics present difficulties for using standard rational choice methods to evaluate response options, there is still a need to balance the benefits and costs of different possible responses with appropriate attention to the uncertainties. To that end, the authors present a qualitative analysis of three options for mitigating the risk of climate mega-catastrophes - drastic abatement of greenhouse gas emissions, development and implementation of geoengineering, and large-scale ex ante adaptation - against the criteria of efficacy, cost, robustness, and flexibility. They discuss the composition of a sound portfolio of initial investments in reducing the risk of climate change mega-catastrophes. |
| Keywords: | Climate Change Mitigation and Green House Gases,Climate Change Economics,Science of Climate Change,Hazard Risk Management,Transport and Environment |
| Date: | 2009–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5127&r=env |
| By: | Mattoo, Aaditya; Subramanian, Arvind; van der Mensbrugghe, Dominique; He, Jianwu |
| Abstract: | There is growing clamor in industrial countries for additional border taxes on imports from countries with lower carbon prices. The authors confirm the findings of other research that unilateral emissions cuts by industrial countries will have minimal carbon leakage effects. However, output and exports of energy-intensive manufactures are projected to decline potentially creating pressure for trade action. A key factor affecting the impact of any border taxes is whether they are based on the carbon content of imports or the carbon content in domestic production. Their quantitative estimates suggest that the former action when applied to all merchandise imports would address competitiveness and environmental concerns in high income countries but with serious consequences for trading partners. For example, China’s manufacturing exports would decline by one-fifth and those of all low and middle income countries by 8 per cent; the corresponding declines in real income would be 3.7 per cent and 2.4 per cent. Border tax adjustment based on the carbon content in domestic production, especially if applied to both imports and exports, would broadly address the competitiveness concerns of producers in high income countries and less seriously damage developing country trade. |
| Keywords: | Climate Change Mitigation and Green House Gases,Climate Change Economics,Environment and Energy Efficiency,Energy and Environment,Transport Economics Policy&Planning |
| Date: | 2009–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5123&r=env |
| By: | Ahmed , Syud Amer; Diffenbaugh, Noah S.; Hertel , Thomas W.; Lobell, David B.; Ramankutty, Navin; Rios, Ana R.; Rowhani, Pedram |
| Abstract: | Climate models generally indicate that climate volatility may rise in the future, severely affecting agricultural productivity through greater frequency of yield-diminishing climate extremes, such as droughts. For Tanzania, where agricultural production is sensitive to climate, changes in climate volatility could have significant implications for poverty. This study assesses the vulnerability of Tanzania’s population to poverty to changes in climate variability between the late 20th century and early this century. Future climate scenarios with the largest increases in climate volatility are projected to make Tanzanians increasingly vulnerable to poverty through its impacts on the production of staple grains, with as many as 90,000 additional people, representing 0.26 percent of the population, entering poverty in the median case. Extreme poverty-increasing outcomes are also found to be greater in the future under certain climate scenarios. In the 20th century, the greatest predicted increase in poverty was equal to 880,000 people, while in the 21st century, the highest possible poverty increase was equal to 1.17 million people (approximately 3.4 percent of the population). The results suggest that the potential impacts of changes in climate volatility and climate extremes can be significant for poverty in Sub-Saharan African countries like Tanzania. |
| Keywords: | Rural Poverty Reduction,Climate Change Mitigation and Green House Gases,Science of Climate Change,Regional Economic Development,Climate Change Economics |
| Date: | 2009–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5117&r=env |
| By: | D. Dragone; L. Lambertini; G. Leitmann; A. Palestini |
| Abstract: | We model a dynamic monopoly with environmental externalities,investigating the adoption of a tax levied on the firm's instantaneous contribution to the accumulation of pollution. The latter process is subject to a shock, which is i.i.d. across instants. We prove the existence of an optimal tax rate such that the monopoly replicates the same steady state welfare level as under social planning. Yet, the corresponding output level, R&D investment for environmental friendly technologies and surplus distribution necessarily differ from the socially optimal ones. |
| JEL: | C61 H21 H23 Q52 |
| Date: | 2009–11 |
| URL: | http://d.repec.org/n?u=RePEc:bol:bodewp:681&r=env |
| By: | Valentina Bosetti; Jeffrey A. Frankel |
| Abstract: | Many analysts have identified three important gaps in the Kyoto Protocol: the absence of emission targets extending far into the future, the absence of participation by the United States, China, and other developing countries, and the absence of reason to think that members will abide by commitments. It appears that political constraints on the country-by-country distribution of economic costs are a key stumbling block to filling these gaps. This paper investigates formulas that assign quantitative allocations of emissions, across countries, one budget period at a time, to see if it is possible to satisfy the constraints. The two-part plan: (i) China and other developing countries accept targets at BAU in the coming budget period, the same period in which the US first agrees to cuts below BAU; and (ii) all countries are asked in the future to make further cuts in accordance with a formula which sums up a Progressive Reductions Factor, a Latecomer Catch-up Factor, and a Gradual Equalization Factor. An earlier plan for specific parameter values in the formulas – Frankel (2009), as analyzed by Bosetti, et al (2009) – achieved the environmental goal that concentrations of CO2 plateau at 500 ppm by 2100. It succeeded in obeying our political constraints, such as keeping the economic cost for every country below the thresholds of Y=1% of income in Present Discounted Value, and X=5% of income in the worst period. In pursuit of more aggressive environmental goals, we now advance the dates at which some countries are asked to begin cutting below BAU, within our framework. We also tinker with the values for the parameters in the formulas. The resulting target paths for emissions are run through the WITCH model to find their economic and environmental effects. We find that it is not possible to attain a 380 ppm CO2 goal (roughly in line with the 2°C target) without violating our political constraints. We were however, able to attain a concentration goal of 460 ppm CO2 with looser political constraints. The most important result is that we had to raise the threshold of costs above which a country drops out, to as high as Y =3.4% of income in PDV terms, or X =12 % in the worst budget period. Whether one concludes from these results that the more aggressive environmental goals are, or are not, attainable at reasonable economic costs, the approach developed here provides a framework for exploring maximization of the tradeoff between the benefits of cutting global emissions and the political feasibility of getting individual countries to share the burden. |
| JEL: | Q50 |
| Date: | 2009–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:15516&r=env |
| By: | Nguyen Mau Dung (Department of Economics, Hanoi University of Agriculture) |
| Abstract: | Processing agricultural products is of the most important 'handicraft' activities in Vietnam's Red River Delta. It provides jobs, improves household incomes and helps alleviate poverty. However, it also generates a huge amount of waste and is a source of serious pollution. This study analysed the environmental consequences of agro-product processing in the area and assessed the cost-effectiveness of pollution control options. This study looks at a village where most of the households are engaged in cassava starch processing. It finds that this activity is a significant source of pollution, which is seriously affecting the health of local rivers and local people. The study recommends that a wastewater treatment plant for the whole village is set up and that wastewater fees are collected from households engaged in agro-processing activities. It also recommends that the sewerage system in the village be improved, that households are involved in environmental clean-up work and that steps are taken to encourage cleaner production technologies in the agro-product processing industry. |
| Keywords: | pollution control, Vietnam |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:eep:pbrief:pb2009091&r=env |
| By: | Vo Thi Lang (School of Economics and Business Administration, Cantho University); Ky Quang Vinh (School of Economics and Business Administration, Cantho University); Ngo Thi Thanh Truc (School of Economics and Business Administration, Cantho University) |
| Abstract: | This study from Vietnam looks at the pollution problem caused by fish farming in the Mekong Delta (MD) and assesses a number of treatment options that could bring this pollution down to acceptable levels. The study is the work of a research team led by Ms Vo Thi Lang, from Cantho University in Vietnam. It finds that a trickling-filter system would be the most cost-effective response to this challenge. However such a system would cost farmers more than they currently pay to discharge their polluting wastewater. The study therefore suggests a number of policy options that would encourage fish farmers to reduce the amount of pollution they discharge and help them to meet the necessary clean up costs. |
| Keywords: | fish production, pollution, Vietnam |
| Date: | 2009–08 |
| URL: | http://d.repec.org/n?u=RePEc:eep:report:rr2009083&r=env |
| By: | Jouko Kinnunen; Kimmo Marttila; Juha Honkatukia |
| Abstract: | In this report we present a new version of the VATTAGE AGE (Applied General Equilibrium) model, which enables distributional analysis of policy changes. We also report estimation results of LES consumption function for eight socioeconomic groups. We use climate policy as an example for the distributional effects. Our model results show that the planned climate policy measures are not very regressive in their nature. In contrast, they seem to distribute the costs of climate policy rather evenly. An exception to this rule is farmer households, the real consumption of which seems to reduce less than that of other groups. |
| Keywords: | Rredistributive effects, environmental taxes, computable general equilibrium models, econometric model estimation |
| JEL: | C51 C68 H23 |
| Date: | 2009–11–13 |
| URL: | http://d.repec.org/n?u=RePEc:fer:wpaper:11&r=env |
| By: | C. Ordás Criado (Center for Energy Policy and Economics (CEPE)); S. Valente (Center of Economic Research (CER)); T. Stengos (Department of Economics, University of Guelph.) |
| Abstract: | The pollution-convergence hypothesis is formalized in a neoclassical growth model with optimal emissions reduction: pollution growth rates are positively correlated with output growth (scale effect) but negatively correlated with emission levels (defensive effect). This dynamic law is empirically tested for two major and regulated air pollutants - nitrogen oxides (NOX) and sulfur oxides (SOX) - with a panel of 25 European countries spanning over years 1980-2005. Traditional parametric models are rejected by the data. However, more flexible regression techniques - semiparametric additive specifications and fully nonparametric regressions with discrete and continuous factors - confirm the existence of the predicted positive and defensive effects. By analyzing the spatial distributions of per capita emissions, we also show that cross-country pollution gaps have decreased over the period for both pollutants and within the Eastern as well as the Western European areas. A Markov modeling approach predicts further cross-country absolute convergence, in particular for SOX. The latter results hold in the presence of spatial non-convergence in per capita income levels within both regions. |
| Keywords: | Air pollution, convergence, economic growth, mixed nonparametric regressions, distribution dynamics. |
| JEL: | C14 C23 Q53 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:gue:guelph:2009-8&r=env |
| By: | De Bruin, Kelly C.; Dellink, Rob B.; Tol, Richard S. J. |
| Abstract: | This paper investigates the economic incentives of countries to cooperate on international adaptation financing. Adaptation is generally implicitly incorporated in the climate change damage functions as used in Integrated Assessment Models. We replace the implicit decision on adaptation with explicit adaptation in a multi-regional setting by using an adjusted RICE model. We show that making adaptation explicit will not affect the optimal mitigation path when adaptation is set at its optimal level. Sub-optimal adaptation will, however, change the optimal mitigation path. Furthermore this paper studies for different forms of cooperation what effects international adaptation transfers will have on (i) domestic adaptation and (ii) the optimal mitigation path. Adaptation transfers will fully crowd out domestic adaptation in a first best setting. Transfers will decrease overall mitigation in our numerical simulations. An analytical framework is used to analyse the most important mechanisms and a numerical model is used to assess the magnitude of effects. |
| Keywords: | Adaptation Funding/Climate change/Integrated Assessment Modeling |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp323&r=env |
| By: | Nguyen Mau Dung (Department of Economics, Hanoi University of Agriculture) |
| Abstract: | This study from Vietnam looks at the pollution problem caused by the processing of agricultural products in the Red River Delta. It also assesses the cost-effectiveness of various pollution control options. The study is the work of Nguyen Mau Dung from Hanoi University of Agriculture and Tran Thi Thu Ha from Vietnam University of Forestry. It focuses on a village where 95% of households are engaged in cassava starch processing. It finds that this activity is a significant source of pollution, which is seriously affecting the health of local rivers and local people. The study recommends that a wastewater treatment plant for the whole village is set up and that wastewater fees are collected from households engaged in agro-processing activities. It also recommends that the sewerage system in the village is improved, that households are involved in environmental clean-up work and that steps are taken to encourage cleaner production technologies in the agro-product processing industry. This study is timely and important because processing agricultural products is one of the most important 'handicraft' activities in Vietnam's Red River Delta. This activity provides jobs, improves household incomes and helps alleviate poverty. However, it also generates a huge amount of waste and is a source of serious pollution. Therefore, finding a solution that will cost-effectively clean up the pollution caused by agro-product processing is a vital part of sustainable development in the region. |
| Keywords: | pollution control, Vietnam |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:eep:report:rr2009091&r=env |
| By: | Akhmad R. Saidy (Faculty of Agriculture Lambung Mangkurat University and Environmental Research Center Lambung Mangkurat University); Yusuf Azis (Faculty of Agriculture Lambung Mangkurat University and Environmental Research Center Lambung Mangkurat University) |
| Abstract: | Many scientists think that a rise in sea levels caused by global warming will be one of the key future environmental challenges facing many low-lying coastal regions. In Indonesia, there is considerable concern about the impact this problem will have on large areas of reclaimed coastal swampland in South Kalimantan. It is thought that over 150,000 ha of this land, which is currently being farmed for rice and other food crops, are at risk, and that this will jeopardize the livelihoods of many thousands of farmers and their communities. To help decide what the best response to this unfolding crisis is, the study focuses on the province of South Kalimantan which is already experiencing salination of its freshwater due to rises in sea level, especially during the dry season. The study finds that building dikes to protect farmland is the most cost-effective response. It finds that this approach would cost society less than doing nothing and that it is a better option from an economic point of view that relocating farmers to new farmland at a higher altitude. |
| Keywords: | sea level rise, Indonesia |
| Date: | 2009–08 |
| URL: | http://d.repec.org/n?u=RePEc:eep:pbrief:pb2009081&r=env |
| By: | Rocío del Pilar Moreno-Sánchez; Jorge Higinio Maldonado; Sven Wunder |
| Abstract: | Flat user fees in payment for environmental services (PES) schemes promote administrative ease, and are sometimes perceived as egalitarian. However, when environmental service (ES) buyers are heterogeneous in their income and water consumption levels, this may not be optimal, as total payments become too low and services are under-supplied. This paper identifies ES buyer preferences and estimates their willingness to pay (WTP) differentiated fees in an ongoing PES initiative in an Andean watershed in Colombia. Small, flat user payments have recently been introduced to implement incipient watershed protection upstream. Environmental service users fall into two highly heterogeneous categories: smallholder peasants and owners of recreational houses. We performed a contingent valuation analysis in a representative stratified sample of 218 user households. For improved water services, ES buyers on average were willing to pay a monthly US$1 premium over current flat PES rates. Owners of recreational houses were willing to pay about US$1.50 more; smallholders only US$0.5. 85% of ES buyers also agree to pay differentiated fees. Of these, 41% would prefer fees differentiated by water consumption, 23% by household income, 30% criteria combination, and 6% by other criteria. Spatial variables, such as distance to the water distribution point and to the town center, importantly influenced WTP. The results may help designing users-driven PES schemes in accordance with efficiency and equity objectives. |
| Date: | 2009–11–06 |
| URL: | http://d.repec.org/n?u=RePEc:col:000089:006007&r=env |
| By: | Commins, Nicola; Lyons, Seán; Schiffbauer, Marc; Tol, Richard S. J. |
| Abstract: | In this paper, we study the impact of energy taxes and the EU ETS on a large number of firms in Europe between 1996 and 2007. Using company level micro-data, we examine how firms in different sectors were affected by environmental policies. Aspects of behaviour and performance studied include total factor productivity, employment levels, investment behaviour and profitability. On the whole, energy taxes increased total factor productivity and returns to capital but decreased employment, with a mixed effect on investment, for the sectors included in our analysis. However, large sectoral variation is observed, with some industries losing out in terms of productivity and profitability when faced with increased energy taxes, while others benefitted. |
| Keywords: | Climate policy/employment/energy taxes/europe/firm performance/investment/Policy/Productivity |
| Date: | 2009–11 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp329&r=env |
| By: | Basudha Chattopadhyay |
| Abstract: | This paper aims at discussing some of the important issues relating to sustainable urban form that would lead to sustainable urban development with possible references to India. The paper is based on available literature and secondary data. The study discusses the compact city debate and next it explains the concept and possibilities of multi-modal urban region as a city form. [Discussion Paper No.5] |
| Keywords: | sustainable, urban, development, India, secondary data, city, region, population, social infrastructure, transportation, employment, shelter, basic services, Millennium Development Goals, climate change, environmental, social, equity |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2289&r=env |
| By: | Jaime Kim E. Bayani (Department of Economics, College of Economics and Management, University of the Philippines, Los Banos); Moises A. Dorado (Department of Economics, College of Economics and Management, University of the Philippines, Los Banos); Rowena A. Dorado (Department of Economics, College of Economics and Management, University of the Philippines, Los Banos) |
| Abstract: | Sea erosion is currently affecting many coastal areas in the Philippines. Natural factors such as wind and waves are to blame, as are human activities such as coral reef destruction. The scale and impact of this problem are both expected to become more widespread due to climate change and sea level rise. Continuing urbanization and the development of more coastal communities in the country are also likely to make the situation worse. To assess possible responses to this problem, this study has investigated coastal erosion in one of the country's more developed coastal coastal regions. It finds that this coastline is vulnerable to the impact of erosion and that, if nothing is done, the problem will cause hundreds of million of Php worth of damage. It also finds that a planned protection strategy is the most rational approach to adopt. Such a strategy is socially and politically acceptable, justifiable from an economic perspective and also preserves the area's beaches along with the social services they provide. |
| Keywords: | sea level rise, coastal, Philippines |
| Date: | 2009–08 |
| URL: | http://d.repec.org/n?u=RePEc:eep:pbrief:pb2009082&r=env |
| By: | Nhan Thanh Nguyen (CIRED - Centre international de recherche sur l'environnement et le développement - CIRAD : UMR56 - CNRS : UMR8568 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole Nationale des Ponts et Chaussées - Ecole Nationale du Génie Rural des Eaux et Forêts); Minh Ha-Duong (CIRED - Centre international de recherche sur l'environnement et le développement - CIRAD : UMR56 - CNRS : UMR8568 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole Nationale des Ponts et Chaussées - Ecole Nationale du Génie Rural des Eaux et Forêts) |
| Abstract: | A bottom-up Integrated Resource Planning model is used to examine the economic potential of renewable energy in Vietnam's power sector. In a baseline scenario without renewables, coal provides 44% of electricity generated from 2010 to 2030. The use of renewables could reduce that figure to 39%, as well as decrease the sector's cumulative emission of CO2 by 8%, SO2 by 3%, and NOX by 4%. In addition, renewables could avoid installing 4.4 GW in fossil fuel generating capacity, conserve domestic coal, decrease coal and gases imports, improving energy independence and security. Wind could become cost-competitive assuming high but plausible on fossil fuel prices, if the cost of the technology falls to 900 US$/kW. |
| Keywords: | integrated resource planning; renewable energy; electricity generation |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00431250_v1&r=env |
| By: | Elie Bellevrat (Enerdata S.A. - Aucune); Philippe Menanteau (LEPII - Laboratoire d'Économie de la Production et de l'Intégration Internationale - CNRS : UMR5252 - Université Pierre Mendès-France - Grenoble II) |
| Abstract: | Modeling activities and scenario building are at the heart of the economic analysis delivered by the ULCOS program. Two main objectives were followed in the framework of SP9. First the modeling team had to provide a set of coherent energy economic scenarios using POLES model. Second, the economic conditions for the emergence of the ULCOS technologies were analyzed. ULCOS contributes to the elaboration of contrasted scenarios that the steel industry could face in the long term. To aim at these objectives specific tools have been used: POLES model for the global energy system modeling and ISIM model for the steel sector based prospective ([1] Hidalgo, 2003). The most promising steel production technologies identified in ULCOS Phase 1 have been introduced into ISIM as generic technologies. ISIM was then integrated as a module into POLES modeling system. The main model outputs are the energy prices and mixes and the steel sector balances with a focus on the technology mix. Actually the climate policy scenarios developped in project allow making recommendations to the steel industry in terms of sustainable development but also in terms of business strategy. |
| Keywords: | STEEL INDUSTRY ; MODELING ; CLIMATE CHANGE ; CO2 |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00430381_v1&r=env |
| By: | Ali DOUAI (GREThA-GRES); Damien TALBOT (GREThA-GRES) |
| Abstract: | This paper provides a critical review of the ‘state of the art’ of institutional analysis applied essentially by social-ecological economists in the environmental domain. It highlights both areas of strength and issues where there is still room for improvement in analytical terms, by construing these approaches in the context of a general taxonomy of institutionalisms – widely used in politics and applied here in the economic realm. This provides the rationale for re-construing a number of related issues drawn from the core insights of a historical institutionalist approach to human-nature |
| Keywords: | Ecological economics, institutional analysis, socio-economy, regulation |
| JEL: | Q01 Q57 B52 P16 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:grs:wpegrs:2009-07&r=env |
| By: | Vo Thi Lang (School of Economics and Business Administration, Cantho University); Ky Quang Vinh (School of Economics and Business Administration, Cantho University); Ngo Thi Thanh Truc (School of Economics and Business Administration, Cantho University) |
| Abstract: | Aquaculture is a thriving industry in the Mekong Delta (MD) of Vietnam. Tra fish are the most popular catfish species bred in the region and they have become an important export item. As such they are an economically valuable product for many MD farmers. However, catfish farming is causing problems for the environment. Waste, especially wastewater, from fish farms is often not treated properly and is dumped into canals, creeks or rivers. This has a negative impact on local communities that rely on river water as their main water source. It also jeopardizes the health of fish and the sustainability of the industry itself. This study looks at this problem and assesses a number of treatment options that could bring pollution down to acceptable levels. The study finds that a trickling-filter systems would be the most cost-effective response to this challenge. However such a system would cost farmers more that they currently pay to discharge their polluting wastewater. The study therefore suggests a anumber of policy options that would encourage fish farmers to reduce the amount of pollution they discharge and help them to meet the necessary clean up costs. |
| Keywords: | fish farm, pollution, Vietnam |
| Date: | 2009–08 |
| URL: | http://d.repec.org/n?u=RePEc:eep:pbrief:pb2009083&r=env |
| By: | James B. Bushnell; Yihsu Chen |
| Abstract: | The allocation of emissions allowances is among the most contentious elements of the design of cap-and-trade systems. In this paper we develop a detailed representation of the US western electricity market to assess the potential impacts of various allocation proposals. Several proposals involve the "updating'' of permit allocation, where the allocation is tied to the ongoing output, or input use, of plants. These allocation proposals are designed with the goals of limiting the pass-through of carbon costs to product prices, mitigating leakage, and of mitigating costs to high-emissions firms. However, some forms of updating can also inflate permit prices, thereby limiting the benefits of such schemes to high emissions firms. Rather than mitigating the impact on high carbon producers, the net operating profit of such firms can actually be lower under input-based updating than under auctioning. This is due to the fact that product prices (and therefore revenues) are lower under input-based updating, but overall compliance costs are relatively comparable between auctioning and input-based updating. In this way, the anticipated benefits from allocation updating are reduced and further distortions are introduced into the trading system. |
| JEL: | L9 Q50 |
| Date: | 2009–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:15495&r=env |
| By: | Costantini Valeria; Crespi Francesco |
| Abstract: | Many industrialised countries have Introduced environmental policy measures in order to reduce negative externalities linked to economic activities. These policy actions produce different effects on the economic system depending on the regulatory tools adopted and the specific objective of public intervention. The impact on innovation is particularly difficult to predict, especially with regard to the direction of technological change. As a case study, we have chosen the energy sector where the strong interrelations between socio-economic and technological dimensions may exacerbate the negative consequences of implementing conflicting policies. The aim of this paper is to show how the lack of strong coordination between different public policies implemented in the energy sector may lead to an incoherent policy mix with negative effects on the development and diffusion of environmentally-friendly energy technologies. We have adopted a gravity equation model based on bilateral export flows of technologies for production and consumption of renewable energies and energy-saving technologies for OECD countries. Our key findings show that alternative measures of public support in the energy sector have been producing contrasting effects on the international competitiveness of energy technologies. |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:uto:labeco:200915&r=env |
| By: | Bluedorn, John C.; Valentinyi, Akos; Vlassopoulos, Michael |
| Abstract: | We investigate the long-run consequences of historic, climatic temperatures (1730-2000) for the modern cross-country income distribution. Using a newly constructed dataset of climatic temperatures stretching over three centuries (18th, 19th, and 20th), we estimate a robust and significant time-varying, non-monotonic effect of climatic temperature upon current incomes for a cross-section of 167 countries. We find a large, positive effect of 18th century climatic temperature and an even larger, negative effect of 19th century climatic temperature upon current incomes. When historic, climatic temperature is introduced, the effect of 20th century climatic temperature on current income is either weakly positive or insignificant. Our findings are robust to various sub-samples, additional geographic controls, and alternative income measures. The negative relationship between current, climatic temperature and current income that is commonly estimated appears to reflect the long-run effect of climatic variations in the 18th and 19th centuries. |
| Keywords: | climate; temperature; economic performance; geography; history |
| JEL: | O11 N50 O57 O50 O40 |
| Date: | 2009–11–17 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:18701&r=env |
| By: | Johansson-Stenman, Olof (Department of Economics, School of Business, Economics and Law, Göteborg University); Konow, James (Department of Economics, Loyola Marymount University) |
| Abstract: | Are fairness concerns of relevance to environmental economics and, if so, are they sufficiently structured to improve analysis in this field? On both of these questions, we answer in the affirmative, arguing that people’s fairness views are based on both general rules and the context, where context refers to the set of variables and persons employed to interpret and apply the principles. The fairness rules analyzed are accountability (i.e., rewards that are proportional to contributions individuals control), efficiency, need and equality. We conclude that stakeholders typically exhibit a “fairness bias”, i.e., they tend, consciously or not, to interpret and apply fairness principles in a self-serving manner, whereas the views of spectators, or impartial third parties, tend to converge significantly more. Further, we argue that fairness considerations are relevant to both descriptive and prescriptive analysis in environmental economics. These fairness concerns are reflected in the behavior of private and public decision-makers and have potentially important policy implications through the overall social objective function.<p> |
| Keywords: | Justice; Fairness rules; accountability; equity theory; environmental economics |
| JEL: | D63 H40 Q50 |
| Date: | 2009–11–16 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0398&r=env |
| By: | Denis REQUIER-DESJARDINS (LEREPS-GRES) |
| Abstract: | The reference to the “win-win” character of sustainable development policies is ubiquitous and gets back to the seminal Bruntland definition. It is particularly common in biodiversity protected areas management debate, frequently associated with poverty alleviation in Southern countries This contribution deals first with the theoretical backgrounds that can be summoned in economics to support the idea of a win-win process. It raised secondly the issue of the feasibility of win-win sustainable development policies and particularly biodiversity and management policies, stressing from a theoretical point of view the relationship between policy tools and objectives, initiated by Tinbergen, and from an empirical point of view the contrasted results of experiments described in the relevant literature. It reckons the relative fragility of the win-win character of these policies. |
| Keywords: | sustainable development, win-win, externalities, joint production, co-evolution |
| JEL: | Q5 O13 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:grs:wpegrs:2009-02&r=env |
| By: | Tavoni, Massimo; Tol, Richard S. J. |
| Abstract: | This paper warns against the risk of underestimating the costs -and the uncertainty about the costs- of achieving stringent stabilization targets. We argue that a straightforward review of integrated assessment models results produces biased estimates for the more ambitious climate objectives such as those compatible with the 2°C of the European Union and the G8. The magnitude and range of estimates are significantly reduced because only the most optimistic results are reported for such targets. We suggest a procedure that addresses this partiality. The results show highly variable costs for the most difficult scenarios. |
| Keywords: | risk/Policy/uncertainty/European Union |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp324&r=env |
| By: | Jaime Kim E. Bayani (Department of Economics, College of Economics and Management, University of the Philippines, Los Banos); Moises A. Dorado (Department of Economics, College of Economics and Management, University of the Philippines, Los Banos); Rowena A. Dorado (Department of Economics, College of Economics and Management, University of the Philippines, Los Banos) |
| Abstract: | This study from the Philippines investigates erosion in one of the country's more developed coastal regions. It finds that this coastline is vulnerable to the impact of erosion and that, if nothing is done, the problem will cause hundreds of millions of Php worth of damage. It also finds that a planned protection strategy is the most rational approach to adopt. Such a strategy is socially and politically acceptable, justifiable from an economic perspective and also preserves the area's beaches along with the social services they provide. This study, which is the work of a research team from the Department of Economics, at the University of the Philippines Los Baños, assesses the coastline of San Fernando Bay in the La Union region of the Philippines. It looks at approximately seven kilometers of the bay's coastline. San Fernando Bay is a densely populated area and it was chosen because it was identified as a place where coastal erosion is already prevalent. Sea-level rise is a major concern across the Philippines and beyond. Its scale and impact are both expected to become more widespread due to climate change and sea level rise. This makes the findings of this report particularly important and timely. |
| Keywords: | economic vulnerability, coastal erosion, Philippines |
| Date: | 2009–08 |
| URL: | http://d.repec.org/n?u=RePEc:eep:report:rr2009082&r=env |
| By: | Adrian Marjolein Caniels; Henny Romijn |
| Abstract: | Biofuel production from the tropical plant Jatropha curcas L. has recently attracted a great deal of attention. Some anticipate substantial social and environmental benefits from its cultivation, while at the same time expecting sound profitability for investors. Others are more doubtful, envisaging large trade-offs between the pursuit of social, environmental and economic objectives. The paper explores these issues in Tanzania, a forerunner in the cultivation of Jatropha in Africa. We trace how isolated Jatropha biofuel experiments in the country developed since their inception in early 2005 towards a fully fledged sectoral production and innovation system; and investigate to what extent that system has been capable of developing ánd maintaining sustainable practices and producing sustainable outcomes. The application of evolutionary economic theory allows us to view the ongoing development processes in the sector as a result of evolutionary variation and selection on the one hand, and revolutionary contestation between different coalitions of stakeholders on the other. Both these processes constitute significant engines of change in the sector. While variation and selection is driven predominantly by localised learning, the conflict-driven dynamics are highly globalised. The sector is found to have moved some way towards a full sectoral innovation and production system, but it is impossible to predict whether a viable sector with a strong "triple bottom line" orientation will ultimate emerge, since many issues surrounding the social, environmental and financial sustainability still remain unresolved. |
| Keywords: | biofuels, Jatropha, evolutionary theory, sustainability, stakeholder conflict, learning, Tanzania |
| Date: | 2009–11 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:0919&r=env |
| By: | Mekonnen, Alemu; Köhlin, Gunnar (Department of Economics, School of Business, Economics and Law, Göteborg University) |
| Abstract: | Soil nutrient depletion is a critical problem, contributing to low agricultural productivity and the limited domestic food supply in sub-Saharan Africa. Fertilizer use in Ethiopia is one of the lowest in sub-Saharan Africa. Particularly in the northern half of the Ethiopian highlands, use of dung as manure is also limited partly because of a significant level of dung consumption as a source of household fuel. Use of dung as fuel is also an important cause of health problems, mainly through indoor air pollution. Plantation interventions are carried out based on the expectation that fuelwood could substitute for dung, thus increasing agricultural productivity. This study examined (1) the determinants of rural households’ decision to use dung as fuel and as manure, and (2) the determinants of consumption of woody biomass and dung as household fuel sources. We found that the decision to use dung as fuel and manure was influenced by household assets (such as livestock and land size), as well as household characteristics (such as family size and age-sex composition of members), suggesting the important role of asset, product, and labor market imperfections. The type of stove and distance to towns also influenced fuel use. We found no evidence that woody biomass and dung were substitutes as household fuel, and in fact there were indications that they are complements. These results suggest the need to focus on asset-poor households to address the limited use of manure. Moreover, energy issues should be considered simultaneously. Encouraging the use of more appropriate (or energy efficient) stoves and other sources of energy that can reduce the use of dung as fuel are important options because they can improve energy efficiency and agricultural productivity, as well as improved health from reduced indoor air pollution.<p> |
| Keywords: | Biomass fuel; dung use; manure; Ethiopia |
| JEL: | Q12 Q42 Q56 |
| Date: | 2009–11–19 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0394&r=env |
| By: | Muchapondwa, Edwin (School of Economics, University of Cape Town); Carlsson, Fredrik (Department of Economics, School of Business, Economics and Law, Göteborg University); Köhlin, Gunnar (Department of Economics, School of Business, Economics and Law, Göteborg University) |
| Abstract: | If local communities living adjacent to the elephant see it as a burden, then they cannot be trusted to be its stewards. To assess their valuation of it, a CVM study was conducted for one CAMPFIRE district in Zimbabwe. Respondents were classi…ed according to their preferences over the elephant. The median WTP for the preservation of 200 elephants is ZW$260 (US$4.73) for respondents who considered the elephant a public good while the same statistic is ZW$137 (US$2.49) for those favouring its translocation. The preservation of 200 elephants yields an annual net worth of ZW$10,828 (US$196) to CAMPFIRE households. However, the majority of households (62%) do not support elephant preservation. This is one argument against devolution of elephant conservation to local communities. Adequate economic incentives must be extended to local communities if their majority is to partake in sound elephant conservation. External transfers constitute one way of providing additional economic incentives.<p> |
| Keywords: | CAMPFIRE; contingent valuation; double bounded spike model; elephant; Zimbabwe |
| JEL: | C25 H41 Q26 |
| Date: | 2009–11–19 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0395&r=env |
| By: | González-Val, Rafael; Pueyo, Fernando |
| Abstract: | In this paper we present a model integrating characteristics of the New Economic Geography, the theory of endogenous growth and the economy of natural resources. This theoretical framework enables us to study explicitly the effect of “first nature causes” in the concentration of economic activity, more specifically, the consequences of an asymmetrical distribution of natural resources. The natural resource we consider appears as a localized input in one of the two countries, giving firms located in that country a cost advantage. In this context, after a decrease in transport costs, firms decide to move to the country with the greatest domestic demand and market size, where they can take more advantage of increasing returns, despite the cost advantage of locating in the South, due to the presence of the natural resource. |
| Keywords: | industrial location; endogenous growth; renewable resource; geography |
| JEL: | O30 R12 Q20 F43 |
| Date: | 2009–11–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:18586&r=env |