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on Environmental Economics |
| By: | Johnston, Robyn M.; Hoanh, Chu Thai; Lacombe, Guillaume; Noble, Andrew; Smakhtin, Vladimir; Suhardiman, Diana; Kam, Suan Pheng; Choo, Poh Sze |
| Keywords: | Agricultural production / Rice / Fisheries / Livestock / Farming systems / Coastal area / Flood plains / Climate change / Environmental effects / Food production / Ecosystems / Water management |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:iwt:rerpts:h042771&r=env |
| By: | Ignacio J. Pérez-Arriaga |
| Abstract: | Answering to the formidable challenge of climate change calls for a quick transition to a future economy with a drastic reduction in GHG emissions. And this in turn requires the development and massive deployment of new low-carbon energy technologies as soon as possible. Although many of these technologies have been identified, the critical issue is how to make them happen at the global level, possibly by integrating this effort into a global climate regime. This paper discusses the preferred approaches to foster low-carbon energy technologies from a regulatory point of view. Specific promotion policies for energy efficiency and conservation, renewable energy, carbon capture and sequestration, and nuclear power are examined, but the focus is on the regulatory instruments that will be needed for the deployment of enhancements to electricity grids and the associated control systems so that they are able to integrate intelligent demand response, distributed generation and storage in an efficient, reliable & environmentally responsible manner. The paper also comments on the interactions between technology and climate change policies and provides recommendations for policy makers. |
| Keywords: | Climate Change, Low-Carbon Energy Technologies, Regulatory Instruments, Smart Grids |
| Date: | 2010–01–29 |
| URL: | http://d.repec.org/n?u=RePEc:rsc:rsceui:2010/25&r=env |
| By: | Boadway, Robin; Song, Zhen; Tremblay, Jean-François |
| Abstract: | 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 mechanism leads to an efficient level of emissions, and if the matching abatements process includes a quota trading stage, the marginal benefits of emissions are also equalized across countries. Given 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 twoperiod 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: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:hit:ccesdp:28&r=env |
| By: | Yu-Fu Chen; Hassan Molana; Catia Montagna |
| Abstract: | We show how consumers’ environmental concerns may limit ‘love of variety’ (LOV) and be reflected in consumers decisions. We investigate how the impact of environmental degradation on LOV influences demand and optimal product variety, and how a pollution tax on firms might be used to improve upon the market outcome and increase welfare. |
| Keywords: | Environmental degradation, love-of-variety, environmental policy |
| JEL: | L1 Q2 |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:dun:dpaper:234&r=env |
| By: | Kenji Fujiwara (Kwansei Gakuin University) |
| Abstract: | The literature on strategic environmental policy has not fully addressed welfare effects of trade liberalization from autarky. In a reciprocal market model of duopoly with transboundary pollution, we study how reductions in transport costs and import tariffs affect the Nash equilibrium welfare of an environmental policy game as compared to any initial state including autarky. We show three patterns of gainfulness of trade depending on the interaction between marginal damage from pollution and the degree of transboundary pollution. |
| JEL: | F12 F18 |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:kgu:wpaper:54&r=env |
| By: | Angela Münch (School of Economics and Business Administration, Friedrich-Schiller-University Jena) |
| Abstract: | In this paper part of the existing Agri-Environmental Schemes (AES) of the European Union are evaluated by using data on county level instead of applying field studies. The attempt is made to disentangle the effects of AES on land management practice as well as land use on biodiversity. It is argued that subsidies as AES should promote environmental-friendly land use which, in turn, should lead to biodiversity conservation. First results show that AES promotes ecological land use rather than extensive agricultural practice. Furthermore, AES is predominantly allocated in biodiversity rich counties and not in counties with low biodiversity which should be enhanced. Furthermore, no clear evidence is so far found, that land use practice is improving the biodiversity status. |
| Keywords: | AES effectiveness, biodiversity, policy evaluation |
| JEL: | Q18 Q58 R14 |
| Date: | 2010–04–19 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2010-026&r=env |
| By: | Osmundsen, Petter (University of Stavanger); Emhjellen, Magne (PETORO) |
| Abstract: | . |
| Keywords: | Decision criteria; climate projects |
| JEL: | A10 |
| Date: | 2010–03–18 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:stavef:2010_002&r=env |
| By: | Mireille Chiroleu-Assouline (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); Mouez Fodha (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: | This paper analyzes the environmental tax policy issues when labor is heterogeneous. The objective is to assess whether an environmental tax policy could be Pareto improving, when the revenue of the pollution tax is recycled by a change in the labor tax properties. We show that, depending on the heterogeneity characteristics of labor and on the initial structure of the tax system, a policy mix could be designed in order to leave each class of worker unharmed. It consists of an increase in progressivity together with a decrease in the flat rate component of the wage tax. |
| Keywords: | Environmental tax, Heterogeneous agents, Welfare analysis, Tax progressivity. |
| Date: | 2009–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-00348891_v2&r=env |
| By: | Arguedas, Carmen (Departamento de Análisis Económico (Teoría e Historia Económica). Universidad Autónoma de Madrid.) |
| Abstract: | In this paper, we analyze whether it is socially desirable that fines for exceeding pollution standards depend not only on the degree of non-compliance but also on the firm's level of investment in environmentally friendly technologies. For that purpose, we consider a partial equilibrium framework where a representative firm chooses the pollution level and the investment effort in response to an environmental policy composed of a pollution standard, an inspection probability and a fine for non-compliance. We find that the fine should not depend on the firm's investment effort if the optimal policy induces compliance. However, the fine should strictly decrease with investment effort under non-compliance and positive social costs of sanctioning. Interestingly, the optimal fine considers the relative importance of monitoring and sanctioning costs in the enforcement problem. |
| Keywords: | pollution standards; costly inspections; environmentally friendly technologies; non-compliance; optimal fines. |
| JEL: | K32 K42 L51 Q28 |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:uam:wpaper:201005&r=env |
| By: | Iwata, Hiroki; Okada, Keisuke |
| Abstract: | Our study empirically investigates the effects of the Kyoto Protocol’s quantified emission limitation or reduction commitments on various greenhouse gas (GHG) emissions such as CO2, CH4, N2O and other greenhouse gases, consisting of HFCs, PFCs and SF6. These GHG emissions are considered to be the main source of global warming issues and 39 countries approved to meet the commitments by ratifying the Kyoto Protocol. Our empirical analysis is based on the STIRPAT model, the stochastic version of the IPAT model, using the data of 119 countries in 1990, 1995, 2000 and 2005. Our main findings are that the effects of the commitments to the Kyoto Protocol (1) are significantly negative for the cases of CO2 and CH4 emissions, (2) are not significant for the case of N2O emissions and (3) are significantly positive for the case of other greenhouse gas emissions. These results have important policy implications for global warming issues. |
| Keywords: | Greenhouse gas emissions; Kyoto Protocol; Sustainability; IPAT; Panel data |
| JEL: | Q56 O19 Q54 |
| Date: | 2010–04–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:22299&r=env |
| By: | Christopher Jones and Jean-Michel Glachant |
| Abstract: | Reducing the European Union GHG emissions by at least 80% by 2050 will require a near zero carbon electricity, road and rail transport industry, and heating and cooling in buildings. As compared to "business as usual" the amount of energy required will basically vary according to the level of energy efficiency: it is the "system scale". Then it is the "system design" which will provide the needed carbon-free technologies consisting of renewable, nuclear and fossil fuels with carbon capture and storage. . A zero carbon energy system by 2050 is then demonstrated to be feasible. However it is far from easy and requires immediate and substantial policy action. The main policy implications are addressed in this paper. The 5 years 2010-2015 will be decisive in establishing a regulatory environment whereby the EU will be in a position, by 2020, to take the next steps to achieve the 2050 goal.. |
| Keywords: | EU Energy Policy; Emission Rights; Carbon free electricity production; regulation of electricity industry |
| Date: | 2010–01–29 |
| URL: | http://d.repec.org/n?u=RePEc:rsc:rsceui:2010/17&r=env |
| By: | David I. Stern |
| Abstract: | Recent papers by Wagner in this journal and Vollebergh et al. in the Journal of Environmental Economics and Management point out some fundamental econometric problems with traditional methods of estimating the environmental Kuznets curve (EKC) and propose alternative approaches that avoid these issues. Wagner notes that traditional methods do not take into account the presence of powers of unit root variables and cross-sectional dependence in the data while Vollebergh et al point out that the time effects are not uniquely identified in the EKC model. The between estimator is a simple estimator that also addresses the concerns of these authors. It makes no a priori assumption about the nature of the time effects and is likely to provide consistent estimates of long-run relationships in real world data situations. I apply several common panel data estimators including the between estimator to the datasets for carbon and sulfur emissions in the OECD and global sulfur emissions. The between estimates of the sulfur-income elasticity are 0.732 in the OECD and 1.067 in the global data set and the estimated carbon-income elasticity is 1.612 in the OECD and 1.509 globally. |
| JEL: | C23 Q53 Q56 |
| Date: | 2010–02 |
| URL: | http://d.repec.org/n?u=RePEc:acb:camaaa:2010-04&r=env |
| By: | Stéphane BECUWE (GREThA UMR CNRS 5113); Radhouane HASNI (GREThA UMR CNRS 5113) |
| Abstract: | This paper analyses the evolution of the textile-clothing sector in Europe. This industry is characterised by China\'s accession to the WTO in 2001 and the dismantling of quotas with the end of the Agreement on Textiles and Clothing on 1 January 2005. Since the 90\'s, the European directives on environmental standards and ecolabels have been increased in this industry. Our methodology is based on Factorial Analysis of Correspondence and a Hierarchical Ascendant Classification, to demonstrate the role of environmental standards in the structuring of clothing imported products. A gravity model is used to examine the negative effect of eco-labels on European imports from developing countries which are penalized by the costs of compliance of their products. The success of the spread of eco-labels is that they are an instrument of trade protection. While it is difficult to isolate the impact of environmental standards on trade. Nevertheless, our results confirm their strategic use in the Textile-clothing sector. |
| Keywords: | Ecolabel, Textile-Clothing, Green protectionism, Factorial analysis of correspondence, \r\nHierarchical Ascendant Classification, Gravity model |
| JEL: | F14 L51 L67 Q56 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:grt:wpegrt:2010-10&r=env |
| By: | Samantha DeMartino, David Le Blanc |
| Abstract: | We present a simple model to estimate the subsidy cost embedded in a global feed-in tariff (GFIT) to simultaneously stimulate electrification and the take-up of renewable energy sources for electricity generation in developing countries. The GFIT would subsidize developing countries for investments they make in generation capacity for renewable electricity up to a threshold level of electricity consumption per capita. Between 2010 and 2025, countries below this threshold strive to bridge the gap by 2025, when subsidies—based on the difference between the costs of renewable technologies and conventional energy sources |
| Keywords: | feed-in tariff, renewable energy, electrification, low-carbon development |
| JEL: | H54 L52 O25 Q42 Q48 Q55 |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:une:wpaper:95&r=env |
| By: | ISHIKAWA Jota; OKUBO Toshihiro |
| Abstract: | We explore the effects of domestic environmental standards when a domestic firm and a foreign rival compete in the domestic market. We focus on a situation where the introduction of environmental standards forces the foreign product out of the domestic market because it does not meet the standards. Such prohibitive standards may induce the foreign firm to produce an environmentally friendly good through R&D or licensing obtained from the domestic firm. However, this does not guarantee that the product, which now complies with the environmental standards, will improve the environment. In the case of licensing, governments may intervene to shift the rent from the domestic firm. In certain circumstances, the shifted rent could exceed the amount paid by the foreign firm for licensing. |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:10018&r=env |
| By: | Lucas Bretschger (CER-ETH - Center of Economic Research at ETH Zurich, Switzerland); Roger Ramer (CER-ETH - Center of Economic Research at ETH Zurich, Switzerland); Florentine Schwark (CER-ETH - Center of Economic Research at ETH Zurich, Switzerland) |
| Abstract: | The paper develops a new type of CGE model to predict the effects of carbon policies on consumption, welfare, and sectoral development in the long run. Growth is fully endogenous, based on increasing specialization in capital varieties, and specic in each sector of the economy. The benchmark scenario is calculated based on the endogenous gains from specialization which carry over to policy simulation. Applying the model to the Swiss economy we nd that a carbon policy following the Copenhagen Accord entails a moderate but not negligible welfare loss compared to development without any negative eects of climate change. Energy extensive as well as capital and knowledge intensive sectors prot in the form of increased growth rates. |
| Keywords: | Carbon policy, CGE models, energy and endogenous growth, heterogeneous capital |
| JEL: | Q54 C63 O41 Q43 Q56 |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:10-129&r=env |
| By: | Hiroaki Ino (Kwansei Gakuin University) |
| Abstract: | We investigate, considering disposal and recycling activities after the consumption of products, the models that explicitly incorporate both the product market and the recycling market. In the field, the deposit-refund (D-R) policy has been discussed as an ideal policy to internalize disposal cost, which can result in the realization of the first-best policy. However, the possibility of firmsf illegal disposal has been neglected. We introduce monitoring cost to prevent firms from disposing of collected residuals illegally and induce the second-best D-R policy. We find that the monitoring problem for firms brings about a variety in the optimal level of the refunds (which is typically be smaller than the first best level). Furthermore, we investigate an alternative policy that requires producers to take back residuals, and show how this policy works equivalently to the second-best D-R policy by applying the theory of tradable emission permits market. We find that the second-best system of this policy is the combination of the take-back requirement depending on the amount of each firmfs outputs and initial exemption from that requirement. |
| Keywords: | Deposit, Refund, Monitoring, IllegalWaste Disposal, Take-back requirement, Tradable rights |
| JEL: | H21 Q21 Q28 |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:kgu:wpaper:50&r=env |
| By: | Sebastian Petrick; Katrin Rehdanz; Richard S. J. Tol |
| Abstract: | To investigate the link between rising global temperature and global energy use, we estimate an energy demand model that is driven by temperature changes, prices and income. The estimation is based on an unbalanced panel of 157 countries over three decades. We limit the analysis to the residential sector and distinguish four different fuel types (oil, natural gas, coal and electricity). Compared to previous papers, we have a better geographical coverage and consider non-linearities in the impact of temperature on energy demand as well as temperature-income interactions. We find that oil, gas and electricity use are driven by a non-linear heating effect: Energy use not only decreases with rising temperatures due to a reduced demand for energy for heating purposes, but the speed of that decrease declines with rising temperature levels. Furthermore we find evidence that the temperature elasticity of energy use is affected by the level of temperature as well as the level of income |
| Keywords: | Climate change, energy demand, heating and cooling effect, temperature |
| JEL: | Q41 Q43 |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1618&r=env |
| By: | European Commission |
| Abstract: | The European Commission services published a staff working document assessing the main sources of innovative financing under discussion. The analysis shows that for some of the instruments a "double dividend" of both raising revenues and improving market efficiency and stability could be reaped, in particular by putting a price on risk-taking in the financial sector and on carbon emissions. |
| Keywords: | European Union, taxation, financial transaction tax, bank levy, bonus tax, carbon tax, financial institutions |
| JEL: | G15 G18 G28 H21 H22 H23 H25 H27 H62 |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:tax:taxstu:0031&r=env |
| By: | Pillai, Rajasekharan |
| Abstract: | The fruits of economic development have not been percolated down to the tribes and marginalized communities. In the Indian experience, neither more than half a century’s economic planning nor official communal reservation mandates helped to better their lot. Myriads of schemes are being announced and launched to address the social and economic well-being of the tribe communities in the national and regional levels. In this backdrop, a case study was done based on the experience of a participatory bio-diversity conservation programme initiated in a well-known Protected Area in India. The study discloses that how marginalized indigenous communities, through decentralized decision making, developed equations for symbiotic livelihood security and biodiversity conservation. |
| Keywords: | Tribes; empowerment; innovation; Periyar; participatory; biodiversity conservation; social capital; Ecodevelopment |
| JEL: | Q57 |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:22202&r=env |
| By: | Stefano Balbi (Department of Economics, University Of Venice Cà Foscari); Pascal Perez (RMAP, Australian National University, Canberra); Carlo Giupponi (Department of Economics, University Of Venice Cà Foscari) |
| Abstract: | A vast body of literature suggests that the European Alpine region may be one of the most sensitive to climate change impacts. Adaptation to climate change of Alpine socio-ecosystems is increasingly becoming an issue of interest for the scientific community while the people of the Alps are often unaware of or simply ignore the problem. ClimAlpTour is a European research project of the Alpine Space Programme, bringing together institutions and scholars from all countries of the Alpine arch, in view of dealing with the expected decrease in snow and ice cover, which may lead to a rethinking of tourism development beyond the traditional vision of winter sports. The research reported herein analyses the municipality of Auronzo di Cadore (22,000 ha) in the Dolomites under the famous peaks of the “Tre Cime di Lavaredo”. The local economy depends on tourism which is currently focused on the summer season, while the winter season is weak. As a whole, the destination receives approximately 65,000 guests per year with a resident population of 3,600 inhabitants. Since recently the Community Council is considering options on how to stimulate a further development of the winter tourism. This paper refers to a prototype agent-based model, called AuronzoWinSim, for the assessment of alternative scenarios of future local development strategies, taking into account complex spatial and social dynamics and interactions. Different typologies of winter tourists compose the set of human agents. Climate change scenarios are used to produce temperature and snow cover projections. The model is mainly informed by secondary sources, including demographic and economic time series, and biophysical data which feed-in its spatial dimension. Primary data from field surveys are used to calibrate the main parameters. AuronzoWinSim is planned for use in a participatory context with groups of local stakeholders. |
| Keywords: | Alpine Winter Tourism, Spatial Agent-Based Model, Climate Change Adaptation |
| JEL: | Q |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ven:wpaper:2010_05&r=env |
| By: | Andrew J. Cassey; Suzette P. Galinato; Justin Taylor (School of Economic Sciences, Washington State University) |
| Abstract: | The Environmental Protection Agency has declared the organophosphate pesticide azinphos-methyl (AZM) cannot be used in the production of apples after September 30, 2012. We estimate the change to sales, price, and employment to the Washington State apple industry from using the likely AZM alternative had this ban been in effect in 2007. Furthermore, we estimate the effects of this ban as it ripples through the overall Washington State economy. We find the ban will bring a relatively modest change to sales (-0.8%), prices (0.2%), and employment (0.1%) in the apple industry, with negligible impacts on the overall Washington State economy. |
| Keywords: | apples, azinphos-methyl, economic impact, computable general equilibrium |
| JEL: | C68 D58 Q18 Q52 R11 |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:wsu:wpaper:cassey-3&r=env |
| By: | Osmundsen, Petter (University of Stavanger); Emhjellen, Magne (PETORO) |
| Abstract: | . |
| Keywords: | Carbon Capture; |
| JEL: | A10 |
| Date: | 2010–03–18 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:stavef:2010_001&r=env |
| By: | Maik T. Schneider (CER-ETH - Center of Economic Research at ETH Zurich, Switzerland); Christian Traeger (Department of Agricultural and Resource Economics, UC Berkeley); Ralph Winkler (Oeschger Centre for Climate Change Research, University of Bern) |
| Abstract: | The prevailing literature discusses intergenerational trade-offs predominantly in infinitely-lived agent models despite the finite lifetime of individuals. We discuss these trade-offs in a continuous time OLG framework and relate the results to the infinitely-lived agent setting. We identify three shortcomings of the latter: First, underlying normative assumptions about social preferences cannot be deduced unambiguously. Second, the distribution among generations living at the same time cannot be captured. Third, the optimal solution may not be implementable in overlapping generations market economies. Regarding the recent debate on climate change, we conclude that it is indispensable to explicitly consider the generations' life cycles. |
| Keywords: | climate change, discounting, infinitely-lived agents, intergenerational equity, overlapping generations, time preference |
| JEL: | D63 H23 Q54 |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:10-128&r=env |
| By: | JINJI Naoto |
| Abstract: | The WTO members are conducting negotiations to clarify and improve disciplines on fisheries subsidies at the Doha Round. In this paper, I investigate how worldwide subsidy reform in the fisheries sector could affect fisheries output and resource stocks in a trading equilibrium. Using a simple static model of variable labor supply, I demonstrate that the effects of a reduction in subsidies on fisheries output will differ, depending on the conditions of the economy and fisheries management in different countries. A possible outcome of a reduction in non-capacity-enhancing subsidies is that fisheries output will rise in countries where catch quotas are not enforced and remain the same in countries where catch quotas are strictly enforced, expanding the total supply of fisheries products and reducing world fisheries resource stocks. Thus, this paper suggests that reducing some types of fisheries subsidies may yield unexpected and undesirable outcomes if fisheries resources are not properly managed. |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:10023&r=env |
| By: | Kenji Fujiwara (Kwansei Gakuin University) |
| Abstract: | This paper develops a dynamic game model of an asymmetric oligopoly with a renewable resource to reconsider welfare effects of increases in the number of firms. We show that increasing not only the number of inefficient firms but also that of Efficient firms reduces welfare, which sharply contrasts to a static outcome. It is discussed that the closed-loop property of feedback strategies plays a decisive role in this finding. |
| Keywords: | Dierential game, Asymmetric oligopoly, Feedback strategy |
| JEL: | C73 L13 Q20 |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:kgu:wpaper:51&r=env |
| By: | Ceddia, M Graziano |
| Abstract: | The paper develops an optimal control model to analyse various management options for infectious diseases that occur in metapopulations, under both Nash and cooperative behaviour. As pathogens are renewable resources with negative value, the problem may be non-convex. Since the disease can be transmitted across various connected populations, externalities are involved. Both aspects deserve attention as two issues arise: a) is eradication of the disease in finite time preferable to indefinite treatment? b) are cooperative solutions well-behaved? The problem is solved numerically and the results indicate that while eradication is likely to be an optimal strategy when initial levels of infections are relatively low, the internalisation of between-population externalities (as indicated by the first order necessary conditions of the cooperative optimal control problem) might not always be possible. Also, ignoring these two aspects can lead to inadequate policy design. |
| Keywords: | infectious diseases; metapopulation; non-convexities; optimal control |
| JEL: | C71 Q28 C02 C61 H00 C72 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:22344&r=env |
| By: | Salvatore Monni; Alessandro Spaventa |
| Abstract: | GDP as an indicator is relatively recent. It was introduced seventy years ago and like many other institutions it is an issue of the historical period in which it was created in the years between the Great Depression and World War II. The adoption of the GDP as an indicator is not a neutral choice, but rather the logical consequence of a well-defined theoretical paradigm in which GDP appears the essential tool apt to promote well-being and development. Since then, however, times have changed, new problems have emerged and new theories and approaches have been developed to address them. Starting from these considerations the paper examines the problems connected with adopting an indicator as an absolute measure of progress. Indicators, in fact, are not neutral: they are the result of a specific economic approach; hence they are biased in nature and contribute to define policies that are implemented. After reviewing the main theories and indicators introduced by literature in the last sixty years, we propose to adopt a different approach according to which progress is measured against stated goals and not in absolute terms. Subsequently, we present an example of this approach by introducing a new indicator (ICSES – Index of Competitiveness and Social and Environmental Sustainability) to measure the performance of EU countries vis-à-vis the goals explicitly stated by the European Union. |
| Keywords: | ISES, GDP , Sustainability, Human Development, Wellbeing |
| JEL: | I3 J16 J21 O15 R1 |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:rtr:wpaper:0114&r=env |
| By: | Nicolau, Mihaela |
| Abstract: | The dynamic of energy prices influences the entire economic activity, both at macro and micro level. Unlike other economic goods price determination, based specially on offer-demand relationship, the energy price determination is strongly influenced by the taxation policy and political factor, mostly in the case of oil and gas prices. The aim of the paper is to present, using a descriptive approach, the level and the influence of fiscal policy on energy prices, the energy tax harmonization attempt and the consequences at macro and micro economy of the tax weight in the energy final price. |
| Keywords: | fiscal policy; energy taxation; energy prices; energy consumption; oil and natural gas price; energy tax harmonization |
| JEL: | Q41 Q48 H23 Q43 |
| Date: | 2009–10–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:22210&r=env |