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on Environmental Economics |
| By: | Silverstein, David N. |
| Abstract: | Funding a response to climate change after Kyoto will require another look at both burden sharing and funding mechanisms. After reviewing the risks of cap-and-trade with carbon offsets and the advantages of a harmonized carbon tax, a method is proposed to utilize a harmonized carbon tax to finance a global climate fund. A common carbon tax rate is assessed across all nations and collected internally for internal investments in climate change. Financing for the global climate fund is generated from transferring a percentage of the collected carbon tax based on historical responsibility for carbon emissions and national wealth. Collected revenue is disbursed for climate aid based on a set of national climate need factors for adaptation, preserving strategic carbon sinks, low-carbon infrastructures and population management. In the interest of distributive justice, nations themselves determine the need factors of each other. Unlike cap-and-trade, this method does not explicitly require emissions caps. Formulas are presented for collection and disbursement, which require parameters for a globally harmonized carbon tax rate, a climate fund contribution rate, a national wealth threshold for fund contributions and need factors for each nation. Published economic and emissions data are used with the formulas to demonstrate an example of how the financing can work. This presents an equitable way to address climate needs across all nations on both a global and regional level. |
| Keywords: | climate change; global warming; climate fund; carbon tax; cap-and-trade; climate finance; Kyoto protocol |
| JEL: | Q56 F53 Q54 |
| Date: | 2010–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27121&r=env |
| By: | Bernhard G. Gunter (American University and Bangladesh Development Research Center) |
| Abstract: | Bangladesh, a country with a population of 160 million, is currently contributing 0.14 percent to the world’s emission of carbon dioxide (CO2). However, mostly due to a growing population and economic growth (which both lead to an increase in energy consumption), Bangladesh’s share in CO2 emissions is—despite the increasing use of alternative energy—expected to rise sharply. This study uses the example of Bangladesh to illustrate the impact of low-income countries’ energy neutral development on global CO2 emissions in 2050 by using a set of alternative assumptions for population growth and GDP growth. It also shows how complex the determinants for (a) gains in energy efficiency and (b) changes in carbon intensity are in low-income countries. |
| Keywords: | climate change, carbon dioxide emission, Bangladesh, Copenhagen Accord |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:bnr:wpaper:10&r=env |
| By: | Hiroyuki Taguchi; Takashi Yoshida (Policy Research Institute) |
| Abstract: | Using the analytical framework of the environmental Kuznets curve, this study examines whether the latecomer’s economies in East Asia enjoy technological spillover effects (latecomer’s advantage) or suffer pollution haven damages (latecomer’s disadvantage) in their environmental pollution management. We carried out dynamic panel estimation by Generalized Method of Moments (GMM) using the panel data with 18 economies for the period from 1990 to 2007. We found two contrasting results among the environmental indices. First, per capita consumption of ozone-depleting substances (ODS) and industrial organic water pollutant emissions (BOD) indicate monotonic decreasing trends with per capita real GDP while per capita carbon dioxide emissions (CDE) show monotonic increasing trend. Second, the ODS and BOD represent the dominance of the latecomer’s advantage while the CDE reveals that of the latecomer’s disadvantage. We speculate that the contrast in the trends comes from the difference in the origin of emissions: the ODS and BOD come mainly from production (easily regulated on the local level), and the CDE come from both production and consumption (easily externalized and not easily subject to regulation). We also presume that the contrast in the latecomer’s effects lies in the degree of maturity in regulatory framework and technology that offset pollution haven effect: good governance for controlling the ODS and BOD, versus unrestricted “carbon leakage” for latecomer’s economies. |
| Keywords: | environmental Kuznets curve, latecomer’s advantage and Disadvantage, pollution haven, spillover effect |
| JEL: | Q53 Q56 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:eab:microe:2422&r=env |
| By: | Belgodere, Antoine |
| Abstract: | This paper proposes a new way to model the cost of climate change, based on a vintage capital modeling. Climate change destroys capital, according to the difference between the current climate and the climate that prevailed when a given durable was built. This assumption is meant to account for the adaptation of economic agents to the changing climate. The main result is that the carbon tax is much less sensitive to the rate of time preference than in the Stern-Nordhaus controversy. Moreover, despite an estimate of the cost in line with Nordhaus' estimate for the 21st century, we find an optimal carbon tax much lower than his one. |
| Keywords: | global warming; stock pollution; carbon tax; discount rate |
| JEL: | H21 Q56 Q54 |
| Date: | 2010–12–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27358&r=env |
| By: | Hahn, Robert W.; Richards, Kenneth |
| Abstract: | In the real world, taxes and cap-and-trade systems are rarely implemented in their pure form. In this paper, we examine a related approach that has been used widely in practice – which we refer to as an “offset.” The idea behind offsets is to encourage firms or entities that may not be a part of the main regulatory system to produce environmental improvements, which can then be used to offset pollution reduction requirements in the main regulatory system. This paper provides a survey and synthesis of the literature on the use of offsets. Examples include offsets for limiting greenhouse gas emissions, maintaining ecosystem services for wetlands, achieving local air pollution goals, protecting water quality, and promoting energy efficiency. The paper reviews how offsets are used in practice and examines what is known about their environmental and economic impacts. Combining insights from the political economy of using offsets with their intrinsic design challenges raises a potentially serious problem – namely, that offsets may often fail to take adequate account of environmental or ecosystem damages. Because this problem can be significant, alternatives should be considered. |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:reg:wpaper:636&r=env |
| By: | Gramstad, Kjetil; Tjøtta, Sigve |
| Abstract: | International efforts on abating climate change, focusing on reductions of greenhouse gas emissions, have thus far proved unsuccessful. This motivates exploration of other strategies such as climate engineering. We modify the Dynamic Integrated model of Climate and the Economy (DICE), and use it in a cost-benefit analysis of climate engineering specifically deposition of sulphur in the stratosphere. The model simulations show that climate engineering passes a cost-benefit test. The cost of postponing climate engineering by 20-30 years is relatively low. Going beyond these standard cost-benefit analyses, climate engineering may still fail; voters may dislike the idea of climate engineering; they do not like the idea of tampering with nature, and their dislike stands independent of outcomes of cost-benefit analyses. |
| Keywords: | Climate change; climate engineering; cost-benefit analyses; public choice. |
| JEL: | Q54 Q58 |
| Date: | 2010–09–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27302&r=env |
| By: | Vipin Chandran, K.P; Sandhya, P |
| Abstract: | Climate change will have a wide range of implications to human health. These include thermal-related morbidity and mortality due to extreme temperatures, effects associated with air pollution, impacts of extreme weather events, malnutrition, water-borne (e.g. diarrhea, cholera, typhoid) and vector-borne diseases (e.g. malaria, dengue). Much of the health risk posed by climate change is preventable or curable through the scale-up of existing health programmes and interventions. Intensive action to strengthen public health systems and to promote sustainable and healthy development choices can enhance current health conditions as well as reduce vulnerability to future climate change. |
| Keywords: | Climate change; MDG; Health |
| JEL: | P36 I12 P3 I1 |
| Date: | 2010–11–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27081&r=env |
| By: | Lindmark, Magnus (CERE); Andersson, Lars Fredrik (CERE) |
| Abstract: | This paper examines the development of carbon dioxide emissions in Sweden, especiallyn with a focus on the absolute reductions during the post-war period, during the 1970s and 1980s. The paper shows that the largest reductions were achieved before the introduction of an active climate policy in 1991. This was in turn the result of significant improvements in energy efficiency and energy conversion, while structural changes were considerably less important. One reason behind this decoupling process may be that the active energy policy put pressure on households and industries to conserve energy and to substitute from oil to electricity and biofuels. The process was substantially reinforced by the development of world oil prices in combination with the development of domestic electricity prices, where nuclear power seems to have played an important role. |
| Keywords: | Sweden; climate policy; economic growth; carbon dioxide reduction; carbon tax |
| JEL: | N54 |
| Date: | 2010–12–07 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:slucer:2010_014&r=env |
| By: | Shmelev, Stanislav Edward |
| Abstract: | The paper assesses the sustainability of investment in various economic sectors, with the aim of minimizing resource use and generation of emissions. The broad development focus of the paper and the potential for the proposed methodology to be applied in many different countries make it a useful methodological contribution to the global sustainability debate. The UK case is taken for illustration purposes, and (given the availability of the necessary data) this methodology could be applied in countries with various economic structures and specialisations. An environmentally extended static 123-sector UK input–output model is used, linking a range of physical flows (domestic extraction, use of water, and emissions of CO2, CH4, NOx) with the economic structure of the UK. A range of environmentally adjusted forward and backward linkage coefficients has been developed, adjusted according to final demand, domestic extraction, publicly supplied and directly abstracted water, amd emissions of CO2 and NOx,. The data on the final demandadjusted and environmentally adjusted forward and backward linkage coefficients were used in a multi-criteria decision-aid assessment, employing a NAIADE method in three different sustainability settings. The assessment was constructed in such a way that each sector of the UK economy was assessed by means of a panel of sustainability criteria, maximizing economic effects and minimizing environmental effects. This type of multi-criteria analysis, applied here for the first time, could prove to be a valuable basis for similar studies, especially in the developing world, where trade-offs between economic development and environmental protection have been the subject of considerable debate. |
| Keywords: | input–output analysis; environmentally extended; MCDA; key sectors; sustainability; ecological economics; UK |
| JEL: | Q32 Q53 Q25 C67 B41 Q57 |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27206&r=env |
| By: | Tisdell, Clem |
| Abstract: | This article provides general background on the development of tourism in Antarctica and environmental concerns raised by it. However, the major part of it reports on and interprets the results from a survey of tourists visiting Antarctica on a cruise ship. Particular attention is given to the socioeconomic profiles of these tourists, their stated level of knowledge of Antarctica before and after their visit, the relative importance to these visitors of seeing different species of Antarctic wildlife and whether or not the opportunity of seeing Antarctic wildlife was of critical importance for their decision to visit Antarctica. The relative valuation by the sampled tourist of features of their Antarctic cruise is explored along with changes in their attitude to nature conservation following their visit to Antarctica. The opinions of respondents about environmental issues involving Antarctica are summarised and their attitudes towards increased tourism in Antarctica are outlined. The article concludes with a discussion of environmental policy issues raised by the development of tourism in Antarctica. |
| Keywords: | Antarctica, Antarcticaâs natural attractions, cruise ships in Antarctica, environmental conservation in Antarctica, tourism in Antarctica, wildlife conservation in Antarctica., Consumer/Household Economics, Environmental Economics and Policy, L83, Q26, Q57, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uqseee:97469&r=env |
| By: | Aravindakshan, Sreejith; Sherief, Aliyaru Kunju |
| Abstract: | Conventional input intensive agriculture practised over the last century has been a major contributor to climate change, second only to energy sector. The communities engaged in pesticide and synthetic input rich agriculture is most vulnerable to the impacts of climate change. Many emerging economies including India have had the opportunity to develop National Adaptation Plans of Action in the context of the United Nations Framework Convention on Climate Change but implementation of those programmes and strategic links to resourcing actions are often lacking. Adaptation in the agricultural sector can be seen in terms of both short-term and long-term actions. Changing to organic farming systems is the most efficient and long term adaptation strategy. Organic agriculture is believed to be the most sustainable approach against climate change ensuring food security; it employs low external input and high output strategies. This paper attempts to review the potent role of organic agriculture as an adaptation strategy to deliver a tangible and hopeful alternative towards sustainable livelihood in the backdrop of climate change. The methodology involves thorough review of scientific literature. The study discusses the carbon sequestration achieved as well as reduction in emission with respect to low pesticide use and fossil fuel based farm machinery use in organic farming. The analysis of results concludes that the organic system of farming is the most resilient adaptation strategy against climate change and offer greater potential as a sustainable livelihood mechanism in times of climate transition. |
| Keywords: | adaptation; climate change; organic agriculture; sustainable livelihoods; vulnerability |
| JEL: | Q16 Q19 O13 Q54 Q10 |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27205&r=env |
| By: | Laure Cabantous (Nottingham University - Nottingham University Business School); Olivier Chanel (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - Université de la Méditerranée - Aix-Marseille II - Université Paul Cézanne - Aix-Marseille III - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - CNRS : UMR6579); Jean-Christophe Vergnaud (CERSES - Centre de recherche sens, ethique, société - CNRS : UMR8137 - Université Paris Descartes, CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I) |
| Abstract: | Transport generates many externalities, some related to atmospheric pollution. In this paper, we focus on two: greenhouse gases, and local pollution. In the search for optimal transport policies, these two externalities have usually been analysed separately. Here, we study them jointly, in a sequential decision-making model. Our model allows for the irreversibility of the policies undertaken, as well as the possibility of a progressive reduction of uncertainties with the arrival of information. We find that when both sources of externalities are analysed jointly, structural measures enabling private transport requirements to be reduced are identified as being more advantageous economically than technological measures to reduce emissions of pollutants. We illustrate the usefulness of a joint analysis of externalities with two examples: tax measures on cars and housing policy. |
| Keywords: | climate change; model of decision-making under uncertainty; irreversibilities; transport policy |
| Date: | 2010–12–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-00543966_v1&r=env |
| By: | Koulovatianos, Christos |
| Abstract: | We build a workable game of common-property resource extraction under rational Bayesian learning about the renewal prospects of a resource. We uncover the impact of exogenously shifting the prior beliefs of each player on the response functions of others. What we find about the role of environmental conservation campaigns is paradoxical. To the extent that such campaigns instill overly high pessimism about the potential of natural resources to reproduce, they create anti-conservation incentives: anyone having exploitation rights becomes inclined to consume more of the resource earlier, before others overexploit, and before the resource's stock is reduced to lower levels. |
| Keywords: | renewable resources; resource exploitation; non-cooperative dynamic games; Bayesian learning; stochastic games; commons; rational learning; uncertainty; beliefs |
| JEL: | Q50 O13 D84 D83 Q20 C72 O12 L70 C73 |
| Date: | 2010–11–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27260&r=env |
| By: | Yan Dong; John Whalley (Institute of World Economics and Politics) |
| Abstract: | We discuss whether or not the introduction of climate change considerations into Nash tariff games increases or reduces post retaliation tariffs. We briefly discuss how climate change considerations can be introduced into computational trade models. We then calculate optimal tariffs in comparable conventional (no climate change considerations present) and with climate change trade models. Results show that compared to conventional trade models, adding climate change considerations reduces the level of optimal tariffs, but this only occurs when the damage effects involved are large. |
| Keywords: | Climate change, Nash tariff games, climate change trade models, trade models |
| JEL: | F10 C70 Q54 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:eab:tradew:2382&r=env |
| By: | Marco R Barassi; Matthew A Cole; Robert J R Elliott |
| Abstract: | In response to equity concerns surrounding the spatial distribution of CO2 emissions and the assumptions of CO2 convergence within some climate models, this paper examines the convergence of CO2 emissions within the OECD over the period 1870-204. More specifically, using the Local Whittle estimator and its variants we examine whether relative per capita CO2 emissions are fractionally integrated, that is they are long memory processes which, although highly persistant, may revert to the mean/trend in the long run. Our results suggest that CO2 emissions within 13 out of 18 OECD countries are indeed fractionally integrated implying that they converge over time, albeit slowly. Interestingly though, the countries whose emissions are not found to be fractionally integrated are some of the highest polluters within the OECD, at least in per capita terms. Our results have implications both for future studies of CO2 convergence and for climate policy. |
| Keywords: | Fractional Integration, Local Whittle Estimation |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:bir:birmec:10-32&r=env |
| By: | David Styles (Environmental Protection Agency, Richview Business Park, Clonskeagh Road, Dublin 14, Ireland/School of Natural Sciences, Trinity College Dublin, Dublin 2, Ireland); Francesco Testa (Sant’Anna School of Advanced Studies, Pisa, Italy /CESISP Center for the Development of Product Sustainability, Via all'Opera Pia 15, 16145 Genova, Italy); Fabio Iraldo (IEFE – Institute for Environmental and Energy Policy and Economics, Via Roentgen 1, 20136 Milano) |
| Abstract: | Industrial production is a major source of global pollution, and it is widely recognised that regulation is required to reduce this pollution for the benefit of society. However, there is considerable debate about the most effective approach to environmental regulation with respect to both environmental and competitive performance. This paper integrates complementary empirical evidence from two entirely separate projects with different approaches (scientific and econometric), from different countries (Ireland and Italy), in order to assess the effectiveness and efficiency of direct environmental regulation in practice. Quantitative pollution avoidance and compliance cost data from Ireland’s pharmaceutical-manufacturing sector were combined with questionnaire responses from 20 Irish pharmaceutical manufacturers and 25 Italian manufacturers of chemicals for building products. We conclude that direct command-and-control regulation is a highly effective approach, and that the efficiency of such regulation is often underestimated. |
| Keywords: | environmental regulation, environmental performance, competitiveness. |
| Date: | 2010–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:sse:wpaper:201002&r=env |
| By: | Mireille Chiroleu-Assouline (Centre d'Economie de la Sorbonne - Paris School of Economics) |
| Abstract: | This paper addresses how corporate environmentalism can be a means of differentiation and of green-washing. Since consumers can seldom directly observe a firm's environmental quality (a problem not easily solved through eco-labeling), published environmental reports and advertising can mislead them. As a result, the role of the NGO becomes both crucial and ambiguous. On the one hand, by helping to increase consumer awareness, NGOs enlarge the market share of green differentiated firms. On the other hand, the risk that consumers will punish a firm perceived to be supplying inaccurate environmental information may bring about the paradoxical result of discouraging differentiation efforts. |
| Keywords: | Differentiation, environmental concern, imperfect competition, quality, advertising, NGO. |
| JEL: | L12 L15 L31 M37 Q50 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:10097&r=env |
| By: | Fahmida Khatun; AKM Nazrul Islam (Centre for Policy Dialogue) |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:eab:govern:2402&r=env |
| By: | Kratzsch, Uwe; Sieg, Gernot; Stegemann, Ulrike |
| Abstract: | If an emission reduction agreement with participation of all players is not enforceable because politicians are too myopic or not able to commit themselves to sustainable policies or costs of reducing emis- sions are too high, strategic investments in research and development (R&D) of green technology, for example sustainable drive-trains, can pave the way for a future treaty. Although no player will rationally reduce emissions on its own, investments in R&D by at least one player can change the strategic situation of negotiations to control emissions: Emission abatement costs will decrease so that a treaty with full par- ticipation can be achieved in future periods through time consistent sustainable policies. |
| Keywords: | emissions; discount factor; commitment; endogenous technical change; repeated prisoner’s dilemma |
| JEL: | O30 H41 F53 Q54 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27188&r=env |
| By: | Lykke E. Andersen (Institute for Advanced Development Studies); Dorte Verner (World Bank) |
| Abstract: | This paper uses municipality level data to estimate the general relationships between climate, income and child mortality in Mexico. Climate was found to play only a very minor role in explaining the large differences in income levels and child mortality rates observed in Mexico. This implies that Mexico is considerably less vulnerable to expected future climate change than other countries in Latin America. |
| Keywords: | Climate change, social impacts, Mexico |
| JEL: | Q51 Q54 O15 O19 O54 |
| Date: | 2010–07 |
| URL: | http://d.repec.org/n?u=RePEc:adv:wpaper:201009&r=env |
| By: | Ekin Birol; Sukanya Das (Madras School of Economics) |
| Abstract: | In this paper we employ a stated preference environmental valuation technique, namely the choice experiment method, to estimate local public‟s willingness to pay (WTP) for improvements in the capacity and technology of a sewage treatment plant (STP) in Chandernagore municipality, located on the banks of the River Ganga in India. A pilot choice experiment study is administered to 150 randomly selected Chandernagore residents and the data are analysed using the conditional logit model with interactions. The results reveal that residents of this municipality are willing to pay significant amounts in terms of higher monthly municipality taxes to ensure the full capacity of the STP is used for primary treatment and the technology is upgraded to enable secondary treatment. Overall, the results reported in this paper supports increased investments to improve the capacity and technology of STPs to reduce water pollution, and hence environmental and health risks that are currently threatening the sustainability of the economic, cultural and religious values this sacred river generates. |
| Keywords: | choice experiment method, conditional logit model, River Ganga, sewage treatment plant, water quality, water quantity |
| JEL: | C25 C87 Q5 Q53 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:eab:develo:2405&r=env |
| By: | Raguragavan, Jananee; Hailu, Atakelty; Burton, Michael |
| Abstract: | Allocation of fish resource is a controversial subject. Decision making is partly made difficult by the lack of knowledge on recreational fishing preferences and the value of fishing opportunities. This study investigates fishing site choices in Western Australia. Recreational fishing data covering the eight major fishing regions and fourty eight fishing sites in the State are used. The data are used to estimate a random utility model (RUM) of site choice behaviour with a supporting negative binomial econometric model of angler and fish-specific expected catch rates. We provide value estimates for different fish types, fishing site attribute changes as well as site access values. It is argued that sound economic value estimates can be starkly different from ad hoc recreational estimates that are commonly cited or presented. |
| Keywords: | non-market valuation, recreational fishing, random utility models, fisheries management, marine environment management, Environmental Economics and Policy, |
| Date: | 2010–02–23 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uwauwp:97473&r=env |
| By: | Chloe Gray |
| Abstract: | This article explores the architecture of a network of education centres located in underprivileged communities in Mexico. The centres provide an environment conducive to learning through spaces that are sustainable, comfortable and secure... |
| Keywords: | education centres, low-income communities, alternative education model, Environmental low-impact materials |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:oec:eduaac:2010/11-en&r=env |
| By: | OECD |
| Abstract: | If the transport sector is to make deep cuts to its carbon emissions, it is necessary to reduce the carbon-intensity of travel. Reducing travel itself, at some times and places, is sometimes justified but it is extremely unlikely that under expected global economic development patterns overall demand will decline. This holds true even if there is saturation in some markets and demand management policies are widely adopted. Technological change is therefore crucial. The emerging view is that the focus for decarbonising transport should be first to improve the fuel efficiency of conventional engines and then gradually introduce alternative technologies… |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:oec:itfaaa:2010/13-en&r=env |
| By: | Saurabh Arora; Marjolein C.J. Caniëls; Henny Romijn |
| Abstract: | Jatropha is emerging as an important biofuel crop throughout developing countries in the tropics. Initially lauded as an environmentally-benign ‘wonder crop’ suitable for arid wasteland cultivation that would avoid competition with scarce livelihood resources, it has recently begun to attract mounting criticisms related to competition with food production, biodiversity impacts, insecurity of land access by local populations, exploitative employment conditions, and disappointing effects on greenhouse gas emission reduction. In this paper we analyse the nature of the local developments that have given rise to these criticisms, and the underlying innovation processes and global forces that are driving the sector in the direction of these contested outcomes. We focus on Tanzania, an important forerunner in Jatropha biofuels production whose experiences have informed the international biofuel debate more broadly. Two surveys among biofuel actors in Tanzania held in 2005 and 2008/9 are the primary data sources. An extended innovation systems perspective is adopted, which is instrumental in studying patterns of global and local institutional embeddedness from a long-term perspective. These patterns are found to be key drivers behind the emergence and evolution of three distinct organizational models in the sector: local energy production and use for rural communities; decentralised subcontracting for centralised oil processors; and large centralised plantations. Socio-economic interactions in these models seem to be regulated by institutions put in place by colonial and early post-colonial governance of agri-commodity production and exchange. Each is also closely associated with different social (network) relations, organizational choices, economic viability, and environmental sustainability effects. |
| Keywords: | Sustainable development, Globalization, Institutions, Energy, Biofuels, Jatropha |
| JEL: | O30 R10 |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:tuecis:wpaper:1010&r=env |
| By: | Joshua Graff Zivin; Maria Damon; Harsha Thirumurthy |
| Abstract: | Poverty and altered planning horizons brought on by the HIV/AIDS epidemic can change individual discount rates, altering incentives to conserve natural resources. Using longitudinal data from household surveys in western Kenya, we estimate impacts of health status on labor productivity and discount rates. We find that household size and composition are predictors of whether the effect on productivity dominates the discount rate effect, or vice-versa. Since households with more and younger members are better able to reallocate labor to cope with productivity shocks, the discount rate impact dominates for these households and health improvements lead to greater levels of conservation. In smaller families with less substitutable labor, the productivity impact dominates and health improvements lead to greater environmental degradation. |
| JEL: | I1 O13 O55 Q27 Q5 Q56 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:16594&r=env |
| By: | Hilary Sigman (Department of Economics, Rutgers University and NBER); Sarah L. Stafford (Department of Economics, College of William and Mary) |
| Abstract: | Regulation of hazardous waste and cleanup of contaminated sites are two major components of modern public policy for environmental protection. We review the literature on these related areas, with emphasis on empirical analyses. Researchers have identified many behavioral responses to regulation of hazardous waste, including changes in the location of economic activity. However, the drivers behind compliance with these costly regulations remain a puzzle, as most research suggests a limited role for conventional enforcement. Increasingly sophisticated research examines the benefits of cleanup of contaminated sites, yet controversy remains about whether the benefits of cleanup in the U.S. exceed its costs. Finally, research focusing on the imposition of legal liability for damages from hazardous waste finds advantages and disadvantages of the U.S. reliance on legal liability to pay for cleanup, as opposed to the government---financed approaches more common in Europe. |
| Date: | 2010–12–10 |
| URL: | http://d.repec.org/n?u=RePEc:cwm:wpaper:104&r=env |
| By: | Hailu, Atakelty; Gao, Lei |
| Abstract: | This paper presents models that predict two recreational fishing trip parameters: the length of a trip and the timing of a trip within a year. A discrete choice (logit) model linking the choice of trip timing to calendar events, the demographic characteristics of anglers as well as the nature of the trip is econometrically estimated. A Tobit model is used to evaluate the relationship between fishing trip length and personal and trip characteristics. The results indicate that timing choice and trip length can be explained well in terms of observable personal and trip variables. Knowledge of these relationships is a useful input to tourism/recreational fishing management as well as to the development of tourism/fishing activity simulation models. |
| Keywords: | recreational fishing, trip timing, length of recreational trips, tourism simulation, environmental impact management, Environmental Economics and Policy, |
| Date: | 2010–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uwauwp:97474&r=env |
| By: | D K Srivastava; C Bhujanga Rao (Madras School of Economics) |
| Abstract: | Extensive reforms of India‟s indirect taxes at the central and the state levels has prepared the necessary ground for the implementation of a comprehensive goods and services tax (GST). The Empowered Committee of the State Finance Ministers in their First Discussion Paper and the Thirteenth Finance Commission in their recently submitted report have suggested GST models which are quite different in many respects. This paper identifies these differences and argues that within the regime of taxation of goods and services in India environmental tax reform should also be incorporated to make the tax regime play a significant role in managing environment. The environment tax reforms will yield both a fiscal double dividend and an economic double dividend making the Indian economy pursue a path of sustainable development. |
| Keywords: | Taxes, environment |
| JEL: | H6 H11 H20 H23 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:eab:microe:2406&r=env |
| By: | Kato, Kazuhiko |
| Abstract: | We determine whether or not a local regional government should privatize its local public firm in a mixed duopoly when it faces the problem of unidirectional transboundary pollution. We consider two regions in an economy, one located upstream and the other, downstream. Where both the local public firm owned by the local government upstream and the private firm are located and compete upstream, we analyze two cases: (h) the private firm is owned by private investors upstream and (f) it is owned by private investors downstream. A comparison of the two cases presents the following results. Partial privatization is desirable for local welfare upstream in (h), but it is not always desirable in (f). In both (h) and (f), it is desirable for local welfare downstream and for the overall welfare of the economy when the degree of environmental damage and the fraction of transboundary pollution upstream are low. However, when they are high, the results change for (h) and (f). |
| Keywords: | Mixed Duopoly; Privatization; Transboundary pollution |
| JEL: | L13 Q53 L33 R38 |
| Date: | 2010–12–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27155&r=env |
| By: | Giaccaria Sergio; Frontuto Vito (University of Turin) |
| Abstract: | The taxation for urban waste management has been reformed in Italy by the introduction of the environmental law in 2006. In the planning phase of waste management the externalities (social and environmental costs) generated by new facilities remain widely naccounted, with a consequent distortion for prices, and the raise of local conflicts. In order to support the diffusion of cost-benefit application the paper presents a survey based on the choice modelling methodology, aimed to evaluate on a monetary scale the disamenity effect perceived by incinerator and landfills in an italian urban context: the city of Turin. The choice experiment and the survey data allowed to model in a random utility framework the behaviour of respondents, whose choices are found to be driven by the endowment of information about technological options, socio-economic characteristics as income, education, family composition, and also by their health status. We propose choice modelling surveys as a way to improve the level of information about the preferences of citizens in a bottom-up sense. Furthermore, we found empiricalevidence that the behaviour in residential location choices is affected by different aspects of the respondent life and in particular by the health status. Distinct estimates of willingness to accept compensation for disamenity effects of incinerator (€2670) and landfill (€3816) are elicited through the choice modelling aaproach. The effect of health status of the respondents, their level of information about the waste disposal infrastructure, the presence of a subjective strong aversion (NIMBY) and the actual endowment and concentration of infrastructures are demonstrated to be significant factors determining the choice behaviour, but differentiated and specific for incinerators and landfills |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:uto:dipeco:201004&r=env |
| By: | Tisdell, Clement A. |
| Abstract: | As outlined, recurring concerns have surfaced since the 1700s that economic growth may prove to be unsustainable. These concerns have been expressed again and have intensified in recent decades but their foundation differs from that of Malthus. The rapid economic growth of China and India have added to these worries. Recent discussions by economists of the desirability of achieving sustainable economic development have mainly focused on measures to attain intergenerational equity in resource use and the dominant view is that each succeeding generation should be at least as well-off as its predecessor. While this is said to be an implication of Rawlsâ principle of justice, this dominant rule does not fully reflect Rawlsâ principle and it also can violate the Paretian improvement criterion. However, the full application of Rawlsâ principle leads to questionable results. For example, it assumes a greater degree of risk-aversion than seems likely in practice and it ignores the importance of intergenerational altruism, for example, the sacrifices that parents willingly make for their children. Rawlsâ principle also displays cosmological bias which results in it being at odds with the teachings of Hinduism and Buddhism. The mainstream stance on sustainable economic development does not appose economic growth. However, another neo-Malthusian point of view, expressed for example by Daly and Georgescu-Roegen, does. It is opposed to an increase in levels of global material production, that is, increased throughput of natural resources for economic production. These views are given some attention. Even if there is agreement about what constitutes a desirable path for economic development, uncertainty limits the scope for identifying measures that will achieve it. That raises the question of how far into the future should existing generations attempt to sustain economic development. This is discussed. In conclusion, it is pointed out that the nature of market systems and international relations make it very difficult to implement policies that can significantly reduce global economic growth and foster sustainable economic development. These problems are global problems and no country, India and China included, can afford to ignore them. |
| Keywords: | China, economic growth, India, intergenerational equity, Rawlsâ principle of justice, sustainable economic development, Consumer/Household Economics, Environmental Economics and Policy, Institutional and Behavioral Economics, International Development, O13, O44, Q01, |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uqseee:97470&r=env |
| By: | Thierry Bréchet (Université catholique de Louvain); Pierre M. Picard, (University of Luxembourg) |
| Abstract: | Noise-induced pollution constitutes a hot and topical societal problem for all major airports. This paper discusses various issues in the implementation of a market for noise licenses as a solution to solve the noise externality between the residents located around airports and the aircrafts moving in and to airports. |
| Keywords: | Airport; environment; noise; licenses |
| JEL: | Q5 R4 D4 D6 D78 D82 L5 L93 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:luc:wpaper:10-13&r=env |
| By: | Strand, Jon |
| Abstract: | When a groundwater basin is exploited by a large number of farmers, acting independently, each farmer has little incentive to practice conservation that would primarily benefit other farmers. This can lead to excessive groundwater extraction. When farmers pay less than the full cost of electricity used for groundwater pumping, this problem can be worsened; while the problem can be somewhat relieved by rationing the electricity supply. The research in this paper constructs an analytical framework for describing the characteristics of economically efficient groundwater management plans, identifying how individual water use decisions by farmers collectively depart from efficient resource use, and examining how policies related to both water and electricity can improve on the efficiency of the status quo. It is shown that an optimal scheme for pricing electricity used for pumping groundwater includes two main elements: 1) the full (marginal) economic cost of electricity must be covered; and 2) there must be an extra charge, reflected in the electricity price, corresponding to the externality cost of groundwater pumping. The analysis includes a methodology for calculating the latter externality cost, based on just a few parameters, and a discussion of how electricity pricing could be modified to improve efficiency in both power and water use. |
| Keywords: | Water and Industry,Water Supply and Systems,Water Conservation,Water Use,Wastewater Treatment |
| Date: | 2010–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5494&r=env |
| By: | Marcel Boyer; Donatella Porrini |
| Abstract: | We focus in this paper on the effects of court errors on the optimal sharing of liability between firms and financiers, as an environmental policy instrument. Using a structural model of the interactions between firms, financial institutions, governments and courts we show, through numerical simulations, the distortions in liability sharing between firms and financiers that the imperfect implementation of government policies implies. We consider in particular the role played by the efficiency of the courts in jointly avoiding Type I (finding an innocent firm guilty of inappropriate care) and Type II (finding a guilty firm not guilty of inappropriate care) errors. This role is considered in a context where liability sharing is already distorted (when compared with first best values) due not only to the courts’ own imperfect assessment of safety care levels exerted by firms but also to the presence of moral hazard and adverse selection in financial contracting. There is also not congruence of objectives between firms and financiers on the one hand and social welfare maximization on the other. Our results indicate that an increase in the efficiency of court system in avoiding errors raises safety care level, thereby reducing the probability of accident, and allowing the social welfare maximizing government to impose a lower liability [higher] share for firms [financiers] as well as a lower standard level of care. <P>Nous considérons dans le présent document les effets des erreurs judiciaires sur le partage optimal des responsabilités entre entreprises et financiers, comme un instrument de politique environnementale. En utilisant un modèle structurel des interactions entre les entreprises, les institutions financières, les gouvernements et les tribunaux, nous montrons, au moyen de simulations numériques, les distorsions dans le partage de responsabilités entre entreprises et financiers qu’implique la mise en œuvre imparfaite des politiques gouvernementales. Nous considérons en particulier le rôle joué par l'efficacité des tribunaux à éviter les erreurs de type I (condamner une entreprise innocente de manquements à la sécurité) et de type II (ne pas condamner une entreprise coupable de manquements à la sécurité). Nous considérons un contexte où le partage des responsabilités est déjà altéré (par rapport à l’optimum de premier rang), en raison non seulement des difficultés des tribunaux à observer correctement les efforts de prévention des entreprises mais aussi de la présence d'aléa moral et sélection adverse dans les contrats de financement. Il n'y a pas absence de congruence entre les objectifs des entreprises et financiers d'une part et la maximisation du bien-être social d’autre part. Nos résultats indiquent qu'une plus grande efficacité du système judiciaire à éviter les erreurs entraine une hausse des activités de prévention d’accident et donc une baisse de la probabilité d'accident, et permet de réduire (d’augmenter) la part de responsabilité des entreprises (financiers) et de réduire le niveau requis de prévention. |
| Keywords: | Environmental Policy, Court Efficiency, Liability Sharing, Regulation, Incomplete Information, Politique environnementale, efficacité des tribunaux, partage de responsabilités, informations incomplètes |
| JEL: | D82 G32 K13 K32 Q28 |
| Date: | 2010–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2010s-48&r=env |
| By: | Kenneth J. Arrow; Partha Dasgupta; Lawrence H. Goulder; Kevin J. Mumford; Kirsten Oleson |
| Abstract: | We develop a consistent and comprehensive theoretical framework for assessing whether economic growth is compatible with sustaining well-being over time. The framework focuses on whether a comprehensive measure of wealth – one that accounts for natural capital and human capital as well as reproducible capital – is maintained through time. Our framework also integrates population growth, technological change, and changes in health. We apply the framework to five countries that differ significantly in stages of development and resource bases: the United States, China, Brazil, India, and Venezuela. With the exception of Venezuela, significant increases in human capital enable comprehensive wealth to be maintained (and sustainability to be achieved) despite significant reductions in the natural resource base. We find that the value of “health capital” is very large relative to other forms of capital. As a result, its growth rate critically influences the growth rate of per-capita comprehensive wealth. |
| JEL: | D69 O10 O47 O50 Q32 Q39 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:16599&r=env |