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on Environmental Economics |
| By: | Konstantinos Angelopoulos (University of Glasgow); George Economides (Athens University of Economics and Business); Apostolis Philippopoulos (Athens University of Economics and Business, University of Glasgow and Visiting Scholar at the Bank of Greece) |
| Abstract: | We welfare rank different types of second-best environmental policy. The focus is on the roles of uncertainty and public finance. The setup is the basic stochastic neoclassical growth model augmented with the assumptions that pollution occurs as a by-product of output produced and environmental quality is treated as a public good. To compare different policy regimes, we compute the welfare-maximizing value of the second-best policy instrument in each regime. In all cases studied, pollution permits are the worst recipe, even when their revenues are used to finance public abatement. When the main source of uncertainty is economic, the best recipe is to levy taxes (on pollution or output) and use the collected tax revenues to finance public abatement. However, when environmental uncertainty is the dominant source of extrinsic uncertainty, Kyoto-like rules for emissions, being combined with tax-financed public abatement, are better than taxes. Finally, comparing pollution and output taxes, the latter are better. |
| Keywords: | General equilibrium; uncertainty; environmental policy |
| JEL: | C68 D81 H23 |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:bog:wpaper:119&r=env |
| By: | Ahmed, Vaqar; Malik , Amin Aslam Khan; Ramay , Shakeel; Munawwar, Zuhair; Pervaiz, Amir |
| Abstract: | Pakistan is a developing country bracing for significant economic growth and development in the future. In this regards, the country is poised to shift towards an increased reliance upon its indigenous coal reserves to fuel its development in the 2010-2050 time frame. Although this will significantly raise its projected greenhouse gas emissions, the present study has identified numerous measures which can be taken to shift this future development pathway on to a lower carbon and more climate friendly trajectory. The country, however, requires this shift to be supported through the access and transfer of appropriate technologies and finance. The ensuing “additional” financial needs for mitigation for a cleaner development future range from between U$ 8 billion and U$ 17 billion. These have been identified in this report along with a potential of 18% and 40% reduction of emissions between below “Business As Usual” scenario which is possible with a shift towards cleaner technologies. These clean development investments, however, need to be made in the near future as otherwise the energy future of Pakistan will get locked into the lower cost - higher carbon options. This mitigation costing estimate will, however, need to be refined and focused further as Pakistan identifies not only the specific technologies that it needs for this low carbon shift (through carrying out the “Technology Needs Assessment”) but also the programmatic, sectoral as well as project specific NAMAs (Nationally Appropriate Mitigation Actions) in the near future. Pakistan is also highly vulnerable to the impacts of climate change and faces immense associated challenges in coping with its unavoidable effects and economic implications. This study has highlighted the need to treat adaptation to climate change as a primary development issue for Pakistan. The potential impacts and sectors demanding prioritized adaptation have been identified in this study and the, associated, costs of adaptation have been estimated utilizing three diverse modeling methodologies – using GDP projections, per-capita figures and “flood” disaster modeling. The resulting adaptation cost figures range from between U$ 6 billion to U$ 14 billion/year that Pakistan would have to spend at an average in the 2010-2050 time frame to cope with the effects of climate change while it will be also left to, unavoidably, bear significant “residual damage” costs induced due to climate change. The top-down adaptation costing analysis applied in this report is aimed at providing a reasonable first approximation that can be refined over time as relevant and reliable local data becomes available especially from research focusing on sector specific adaptation costing. Most significantly the report reinforces the fact that the issue of climate change is, thus, not only an environmental issue challenging the country but an issue which will directly impinge upon the country’s economic, financial and development future as it deals with its extreme vulnerability to climate change. The significant climate costs identified in this study inextricably shows that climate change is an issue which Pakistan can ill afford to ignore in the future. Finally the report has identified the major financing options available for climate change related activities in Pakistan as well as the significant unilateral climate resources, U$ 4.5 billion in 2007-2009 alone, that the country is already committing to climate change without getting any global recognition for its efforts. In future, global financing will need to augment and leverage such national financial commitments. Also, as climate finance becomes increasingly available at the global level, it would be essential to enact appropriate assimilative national capacity in Pakistan to direct this finance towards nationally identified priorities as well as channelize it transparently and efficiently through consolidated financial mechanisms like a National Climate Change Fund which has been proposed through this study. |
| Keywords: | climate change Pakistan |
| JEL: | Q54 |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:30942&r=env |
| By: | Leahy, Eimear; Tol, Richard S. J. |
| Abstract: | We assess the subsidy for the installation of biomass boilers and wood gasification boilers under the Greener Homes Scheme in Ireland. We find that the (implicit) subsidy per tonne of carbon dioxide avoided varies hugely across households. The current policy costs 17% too much for the emissions avoided, or avoids 17% too few emissions for the money spent. The subsidy reduces welfare (including environmental benefits) by 42%. |
| Keywords: | cost/Ireland/Policy/Republic of Ireland |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp388&r=env |
| By: | Parry, Ian W.H. (Resources for the Future) |
| Abstract: | Fiscal instruments are potentially among the most effective, and cost-effective, options for addressing externalities related to poor air quality, urban road congestion, and greenhouse gases. This paper takes a case study, focused on Mauritius (a pioneer in the use of green taxes) to illustrate how existing taxes, especially on fuels and vehicles, could be reformed to better address these externalities. We discuss, in particular, an explicit carbon tax; a variety of options for reforming vehicle taxes to meet environmental, equity, and revenue objectives; and a progressive transition to usage-based vehicle taxes to address congestion. |
| Keywords: | Mauritius, green taxes, global warming, congestion, vehicle taxes |
| JEL: | Q56 Q58 H23 R48 |
| Date: | 2011–05–17 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-11-20&r=env |
| By: | Slunge, Daniel (Department of Economics, School of Business, Economics and Law, Göteborg University); Ekbom, Anders (Department of Economics, School of Business, Economics and Law, Göteborg University); Loayza, F. (The World Bank, Environment Department); Guthiga, P. (Kenya Institute for Public Policy Research and Analysis (KIPPRA), Kenya); Nyangena, Wilfred (Kenya Institute for Public Policy Research and Analysis (KIPPRA), Kenya) |
| Abstract: | The Forest Carbon Partnership Facility has recently proposed the application of strategic environmental social assessment (SESA) for incorporating environmental and social considerations in the preparation of REDD+ initiatives. This paper discusses the potential contribution of SESA to REDD+ initiatives drawing on experiences from earlier attempts to large scale forestry sector reforms and a recent World Bank pilot program on strategic environmental assessment. The paper suggests that SESA can be a useful approach for strengthening institutions and governance needed for managing diverse environmental and social impacts related to REDD+. More specifically, SESA can enhance policy making and governance through raising attention to environmental and social priorities, strengthening constituencies for policy change and improving social accountability. In order for SESA to contribute to these outcomes it needs to be assured that broad national “ownership” is achieved and that it becomes part of a long-term policy learning process with repeated and sustained stakeholder interaction. Through strengthening constituencies in policy reform SESA can potentially reduce the risk of regulatory capture of REDD+ by vested interests and make institutional checks and balances more effective. An analysis of Kenyas process of preparing a national REDD+ strategy is used to illustrate our case in the paper. <p> |
| Keywords: | REDD; forest management; GHG emissions; governance; stakeholder participation; World Bank |
| JEL: | Q23 Q28 Q54 |
| Date: | 2011–04–26 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0493&r=env |
| By: | Widerberg, Anna (Department of Economics, School of Business, Economics and Law, Göteborg University) |
| Abstract: | Combinations of various policy instruments to deal with the threat of climate change are used throughout the world. The aim of this article is to investigate an electricity market with two di¤erent policy instruments, Tradable Green Certi…cates (TGCs) and CO2 emission allowances (an Emission Trading System, ETS). We analyze both the short- and long-run e¤ects of a domestic market and a market with trade. We …nd that increasing the TGC quota obligation will decrease the electricity produced using non-renewable sources as well as the long-run total production of electricity. For the electricity produced using renewable energy sources, an increase in the quota obligation leads to increased production in almost all cases, with assumptions based on historical data. The impacts of the ETS price on the electricity production are negative for all electricity production, which is surprising. This means that the combination of ETS and TGCs gives unexpected and unwanted results for the electricity production using renewable sources, since an increase in the ETS price leads to a decrease in this production. <p> |
| Keywords: | Climate change; Tradable green certi…cates; Emission allowances; Electricity |
| JEL: | Q40 Q42 Q48 |
| Date: | 2011–05–19 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0504&r=env |
| By: | Arnaud Dragicevic |
| Abstract: | This paper proposes three analyses of the tradeoff mechanism between ecotax and carbon credit. Our wish is to compare the ecotax level with the carbon credit price, subject to the minimization of the cost inherent to emissions. We redefine the calculus equations of the firm profit, in which we inject the parameters of energy intensity and emission intensity. We proceed to one static and two dynamic studies, whither we adapt the methodology of population dynamics. Our results highlight a simple tradeoff rule between ecotax and carbon credit, both in the static and dynamic models. In uncertainty, the rule determines whether the level of environmental tax is under- or overvalued compared to the carbon credit price. As well, the study enables to determine the global level of tax revenue attainable by the enforcement of the environmental taxation. <P>Ce papier propose trois analyses sur le mécanisme d’arbitrage entre écotaxes et permis d’émissions. Notre souhait est de comparer le niveau de l’écotaxe avec le prix du permis d’émissions, sous contrainte de minimisation du coût inhérent aux émissions. Nous redéfinissons les équations de calcul du profit des entreprises où nous injectons les paramètres d’intensité énergétique et de facteur d’émissions. Nous procédons à une étude statique puis à deux études dynamiques dans lesquelles nous adaptons la méthodologie de la dynamique des populations. Nos résultats mettent en exergue une simple règle d’arbitrage entre écotaxe et permis d’émissions, aussi bien dans le modèle statique que les modèles dynamiques. Dans l’incertitude, la règle détermine si le niveau de la taxe environnementale est sous- ou surévalué par rapport au prix du permis d’émissions. L’étude permet également de déterminer le niveau global des recettes fiscales atteignable par la mise en vigueur de l’éco-fiscalité. |
| Keywords: | diseconomic profit, environmental taxation, emissions trading, evolutionary game theory., profit déséconomique, éco-fiscalité, bourse du carbone, théorie des jeux évolutionnaires. |
| JEL: | C7 F18 H21 H23 H32 |
| Date: | 2011–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2011s-45&r=env |
| By: | Rosas, Juan (Francisco); Babcock, Bruce A.; Hayes, Dermot J. |
| Abstract: | On average, U.S. farmers choose to apply nitrogen fertilizer at a rate that exceeds the ex post agronomically optimal rate. The technology underlying the yield response to nitrogen rewards producers who over apply in years when rainfall is excessive. The overapplication of nutrients has negative environmental consequences because the nitrogen that is not taken up by the plant will typically volatilize causing N2O emissions, or leach causing water pollution. We present a nonlinear offset program that induces farmers to reduce their nitrogen applications to the level that will be consumed by the plant in a typical year and, as a result, reduce N2O emissions from agriculture. The offset program is nonlinear because of the nonlinear relationship between N2O and nitrogen application rates. We assume that the farmer solves an expected utility maximization problem, choosing the optimal nitrogen application rate. The key contribution is a set of simulations that shows that modest offset payments will induce participation in the program and will have a significant impact on both expected and actual N2O emissions without having a significant impact on actual or expected yields. We also find that more risk-averse farmers will reduce emissions by a greater amount than less risk-averse farmers. Finally, we show the distribution of emission reductions induced by this nonlinear offset scheme. |
| Keywords: | nitrogen fertilizer; carbon offsets; nitrous oxide; pollution; uncertainty. |
| JEL: | D8 Q12 Q18 Q51 Q53 Q54 |
| Date: | 2011–04–28 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genres:33818&r=env |
| By: | Tol, Richard S. J. |
| Abstract: | This paper uses a vote-counting procedure to estimate the probability density function of the total economic impact as a parabolic function of global warming. There is a wide range of uncertainty about the impact of climate change up to 3ºC, and the information becomes progressively more diffuse beyond that. Warming greater than 3ºC most likely has net negative impacts, and warming greater than 7ºC may lead to a total welfare loss. The expected value of the social cost of carbon is about $29/tC in 2015 and rises at roughly 2% per year. |
| Keywords: | Climate change/uncertainty/impacts/Social cost of carbon/cost |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp382&r=env |
| By: | Andersson, David (Physical Resource Theory, Dept of Energy and Environment, Chalmers University of Technology); Löfgren, Åsa (Department of Economics, School of Business, Economics and Law, Göteborg University); Widerberg, Anna (Department of Economics, School of Business, Economics and Law, Göteborg University) |
| Abstract: | A personal carbon allowance (PCA) scheme targets emissions from individual consumption and allocates allowances directly to individuals by dividing the carbon budget on a per capita basis. In this study we analyse the results of a survey sent out to a representative sample of the Swedish population regarding attitudes to a potential PCA scheme. The distinctive design of a PCA scheme is likely to give rise to specific factors affecting individuals attitudes, such as the perceived fairness of the allocation of allowances and corresponding redistribution of wealth, as well as the perceived complexity of the scheme. We perform an ordered probit analysis with attitude to PCAs as the dependent variable, controlling for a number of variables potentially affecting such attitudes. Interestingly, our findings indicate that the most important variable explaining attitudes to the scheme is the perception of respondents that this type of policy instrument seems very complex. <p> |
| Keywords: | Attitudes; Climate change; Environment; Fairness; Personal carbon allowances; Public opinion; Tradable energy quotas |
| JEL: | D12 D60 H23 Q48 Q58 |
| Date: | 2011–05–19 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0505&r=env |
| By: | Sylvia N. Tesh |
| Abstract: | Abstract: Deforestation in the Brazilian Amazon is likely to continue for a long time, despite the efforts of the Brazilian government and of Brazilian and foreign non-governmental organizations to halt it. This paper argues that among the reasons for this unhappy state of affairs is the framing of deforestation as an environmental issue. It discusses three kinds of environmental framing that, while promoting respect for nature, distort policy options. One frame simplifies an extraordinarily complex situation, thus disregarding critical policy questions. A second frame endorses weak but politically acceptable solutions to the deforestation problem. A third plays into the hands of a politically conservative Brazilian agenda that identifies forest protect with threats to national sovereignty. |
| Keywords: | discourse; environmental policy |
| Date: | 2011–05–17 |
| URL: | http://d.repec.org/n?u=RePEc:erp:jeanmo:p0297&r=env |
| By: | Sophie Bernard (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 presents a theoretical model of remanufacturing where a duopoly of original manufacturers produces a component of a final good. The specific component that needs to be replaced during the lifetime of the final good creates a secondary market where independent remanufacturers enter the competition. An environmental regulation imposing a minimum level of remanufacturability is also introduced. The main results establish that, while collusion of the firms on the level of remanufacturability increases both profit and consumer surplus, a social planner could use collusion as a substitute for an environmental regulation. However, if an environmental regulation is to be implemented, collusion should be repressed since competition supports the public intervention better. Under certain circumstances, the environmental regulation can increase both profit and consumer surplus. Part of this result supports the Porter Hypothesis, which stipulates that industries respecting environmental regulations can see their profits increase. |
| Keywords: | Remanufacturing, competition, environmental regulation, Porter hypothesis. |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-00594051&r=env |
| By: | Christoph Böhringer, Bouwe Dijkstra and Knut Einar Rosendahl (Statistics Norway) |
| Abstract: | We consider an international emissions trading scheme with partial sectoral and regional coverage. Sectoral and regional expansion of the trading scheme is beneficial in aggregate, but not necessarily for individual countries. We simulate international CO2 emission quota markets using marginal abatement cost functions and the Copenhagen 2020 climate policy targets for selected countries that strategically allocate emissions in a bid to manipulate the quota price. Quota exporters and importers generally have conflicting interests about admitting more countries to the trading coalition, and our results indicate that some countries may lose substantially when the coalition expands in terms of new countries. For a given coalition, expanding sectoral coverage makes most countries better off, but some countries (notably the USA and Russia) may lose out due to loss of strategic advantages. In general, exporters tend to have stronger strategic power than importers. |
| Keywords: | Emissions Trading; Allocation of Quotas; Strategic Behavior |
| JEL: | C61 C72 Q25 |
| Date: | 2011–05 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:654&r=env |
| By: | Leeuwen, E.S. van; Nijkamp, P.; Rietveld, P. |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:vuarem:2011-18&r=env |
| By: | Stefanie Glotzbach (Sustainability Economics Group, Leuphana University of Lüneburg, Germany) |
| Abstract: | The increasing loss of ecosystem services severely affects life perspectives of today’s poor and future persons. Thus, governing the use of ecosystem services in an intragenerational and intergenerational just way is an urgent issue. I develop a conception of ecological justice that establishes the specific link between justice and ecosystem services, and argue that specific demands on a conception of ecological justice follow from determining ecosystem services as objects of justice. Showing that Rawls’ “A Theory of Justice” (1971) can consistently meet the identified demands, I verify that it is an appropriate theory for deriving a conception of ecological justice. |
| Keywords: | ecological justice, ecosystem services, global justice, intergenerational justice, environmental ethics. |
| JEL: | Q56 Q57 Q19 |
| Date: | 2011–05 |
| URL: | http://d.repec.org/n?u=RePEc:lue:wpaper:204&r=env |
| By: | Nguyen Thang Dao (CORE - Center of Operation Research and Econometrics [Louvain] - Université Catholique de Louvain); Julio Davila (CORE - Center of Operation Research and Econometrics [Louvain] - Université Catholique de Louvain, 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: | We consider in this paper overlapping generations economies with polution resulting from both consumption and production. The competitive equilibrium steady state is compared to the optimal steady state from the social planner's viewpoint. We show that any competitive equilibrium steady state whose capital-labor ratio exceeds the golden rule ratio is dynamically inefficient. Moreover, the range of dynamically efficient steady states capital ratios increases with the effectiveness of the environment maintainance technology, and decreases for more polluting production technologies. We characterize some tax and transfer policies that decentralize as a competitive equilibrium outcome the social planner's steady state. |
| Keywords: | Overlapping generations, environmental externality, tax and transfer policy. |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-00593926&r=env |
| By: | Boyd, James (Resources for the Future); Brookshire, David S. |
| Abstract: | This paper describes specific ways in which the analysis of ecosystem goods and services can be included in terrestrial carbon sequestration assessments and planning. It specifically reviews the U.S. Geological Survey’s LandCarbon assessment methodology for ecosystem services. The report assumes that the biophysical analysis of co-effects should be designed to facilitate social evaluation. Accordingly, emphasis is placed on natural science strategies and outputs that complement subsequent economic and distributional analysis. |
| Keywords: | ecosystem services, carbon sequestration, land use planning |
| Date: | 2011–05–20 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-11-22&r=env |
| By: | Athanasios Lapatinas (Department of Economics, University of Ioannina); Anastasia Litina (Department of Economics, University of Ioannina); Eftichios S. Sartzetakis (Department of Economics, University of Macedonia) |
| Abstract: | We construct an overlapping generations model comprising of two distinct groups of agents, citizens and politicians. Each agent lives through two periods; childhood and adulthood. She makes choices only as an adult, based on her utility that depends on her own con- sumption and the human capital and environmental quality endowed to her o¤spring. Citizens decide upon the proportion of their income that declare to the tax authorities, balancing between their own con- sumption and their o¤springs?s well being. Politicians on the other hand can peculate a part of the tax revenue allocated to education and environmental protection with the rates of peculation for each ac- tivity exogenously given. Politicians decide upon the allocation of the tax revenue between the two activities balancing a similar trade-o¤ to that of citizens. In this context, two self-ful?lling stable equilib- ria can emerge, one with high tax evasion and high allocation to the more rent-seeking activity and one with low tax evasion and low al- location to the more rent-seeking activity. This outcome accords well with existing empirical evidence and outlines that environmental poli- cies may fail in corrupt countries if they are meant to increase rent seeking instead of protecting the environment. |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:mcd:mcddps:2011_08&r=env |
| By: | Dorothée Brécard (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Université de Nantes : EA4272); Sterenn Lucas (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Université de Nantes : EA4272); Nathalie Pichot (LAUREPS - CRPCC - Laboratoire de Psychologie Sociale. UHB - MEN : EA1285 - Université Rennes 2 - Haute Bretagne); Frédéric Salladaré (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Université de Nantes : EA4272, CREM - Centre de Recherche en Economie et Management - CNRS : UMR6211 - Université de Rennes I - Université de Caen) |
| Abstract: | How are consumer attitudes towards eco-labeled products affected by a profusion of labels? This article provides both theoretical and empirical insight into this issue. Assuming that consumers perceive a label both as a sign of quality and of a particular characteristic of a product, we deduce theoretical determinants for preferences for three types of label: a health label, an eco-label and a fair trade label. Using a French survey on seafood products, the estimation of a rank-ordered multinomial logit with random intercepts shows a certain proximity between the profiles of pro-eco-label and pro-fair trade label consumers, whereas pro-health label individuals have a more distinct profile: The two former are more likely to be young men mainly concerned with fishing conditions, whereas the latter are older married women with children who pay attention to the product form. We relate preferences for labels to degree of altruism, environmental consciousness and other socio-economic features. |
| Keywords: | Environmental preferences ; contingent choice ; eco-label ; seafood. |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00593744&r=env |
| By: | Naidu, Sirisha C. |
| Abstract: | This paper investigates the effects of the size of private land holdings and access to forest commons on the labour allocation to livelihood activities. The statistical analysis indicates that land and forests are complementary assets in the rural production process. Differential access to private land and common forests together explain variability in time allocation to rural livelihoods in the forested regions of northwest India. Development and conservation policies that might cause displacements or disruptions to such livelihoods must therefore consider the impact of policy making on private wealth as well as access to the natural commons. |
| Keywords: | time use; rural livelihoods; forest commons; protected areas; South Asia; India |
| JEL: | D13 Q23 J22 B59 Q12 |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:31060&r=env |
| By: | Malo André Hutson |
| Abstract: | Increased urbanization has also led to many challenges for urban residents. In the United States, land use and zoning, transportation and infrastructure, lack of affordable housing, and disinvestment have severely affected the quality of life of poor urban populations. Despite these challenges, opportunities do exist to make economically disadvantaged urban communities more sustainable, livable, and healthy. This working paper discusses the challenges facing urban communities and then considers the opportunities that exist to develop sustainable urban communities given our current economic climate. |
| Keywords: | Community development ; Urban economics |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedfcw:2011-03&r=env |
| By: | Kenneth Small (Department of Economics, University of California-Irvine) |
| Abstract: | This paper assesses the costs and effectiveness of several energy policies for light-duty motor vehicles in the United States, using the National Energy Modeling System (NEMS). The policies addressed are higher fuel taxes, tighter vehicle efficiency standards, and financial subsidies and penalties for the purchase of high- and low-efficiency vehicles (feebates). I find that tightening fuel-efficiency standards beyond those currently mandated through 2016, or imposing feebates designed to accomplish similar changes, can achieve by 2030 reductions in energy use by all light-duty passenger vehicles of 7.1 to 8.4 percent. A stronger feebate policy has somewhat greater effects, but at a significantly higher unit cost. High fuel taxes, on the order of $2.00 per gallon (2007$), have somewhat greater effects, arguably more favorable cost-effectiveness ratios, and produce their effects much more quickly because they affect the usage rate of both new and used vehicles. Policy costs vary greatly with assumptions about the reason for the apparent myopia commonly observed in consumer demand for fuel efficiency, and with the inclusion or exclusion of ancillary costs of congestion, local air pollution, and accidents. |
| Keywords: | Fuel efficiency; Light-duty vehicles; Energy policy; Greenhouse gases; Feebate; Fuel tax |
| JEL: | L92 R48 Q48 Q54 Q52 |
| Date: | 2011–05 |
| URL: | http://d.repec.org/n?u=RePEc:irv:wpaper:101108&r=env |
| By: | CHristos Constantatos (Department of Economics, University of Macedonia); Lefteris Filippiadis (Concordia University); Eftichios S. Sartzetakis (Department of Economics, University of Macedonia) |
| Abstract: | When the market of tradable emissions permits is perfectly competitive, free allocation of permits through some discretionary rules corresponds to lump sum transfers and cannot have strategic effects. This conclusion is reversed when transactions costs are introduced in the TEP market. Transactions costs proportional to the value of permits exchanged create a gap between selling and the buying price, thus resulting in lower opportunity costs for the holder of excess permits. This can be effectively exploited by a government in order to encourage its firm to gain larger share in an international market. When costs per transaction are fixed, the above effects disappear for those firms participating in the market. For small firms, however, participation may be prohibitively expensive, turning the opportunity cost of any permits hold, equal to zero. This suggests that free permits may create strategic effects within the hands of small firms but not when granted to larger firms. |
| Keywords: | Tradeable Emissions Permits, strategic trade policy. |
| JEL: | Q20 Q28 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:mcd:mcddps:2011_09&r=env |
| By: | Mark Huberty; Georg Zachmann |
| Abstract: | We test if and where industrial policy to promote â??greenâ?? industry development can improve competitiveness in export markets. Proponents of â??green growthâ?? have argued that domestic promotion of â??greenâ?? energy will generate improved comparative advantage in export markets for high-technology goods such as wind turbines or solar cells. If this holds depends on if domestic market expansion can, on its own, support firm competitiveness abroad. We find evidence that industrial policy may work for wind turbines, but we find no evidence that it works for solar cells. Furthermore, domestic renewable energy promotion is more likely to translate into improved international competitiveness if a country already possesses skills, technologies, and industrial sectors closely related to the sector in question. By locating the wind turbine and solar cell sectors in the global product space of traded goods, we are able to show that, net of historical competitiveness and domestic market size, green industrial policy functions best when capitalising on pre-existing industrial capacities, rather than trying to create them. Finally, our finding that policy appears to work for wind turbines but not solar cells may reflect the greater tradeability of solar cells, which may mean that expansion of domestic demand leads to more imports rather than expanded domestic production. While this paper suggests conditions under which green industrial policy might prove effective in economic development, it makes no claims about whether this represents an efficient approach to either growth or emissions reduction. This evidence recommends caution in using economic growth and competitiveness arguments as the primary justification for investments in renewable energy. |
| Date: | 2011–05 |
| URL: | http://d.repec.org/n?u=RePEc:bre:wpaper:556&r=env |
| By: | Randall W. Eberts |
| Abstract: | The transition to a green economy will imply many changes in the labour market locally and the local development systems. The impacts are still difficult to measure as definitions vary and policy uncertainties persist. The OECD Local Economic and Employment Development (LEED) Programme is making an important contribution to these debates with its project on Climate Change, Employment and Local Development which is looking at the obstacles hindering green growth at the local level and the policy frameworks needed to ensure skills availability, economic activity and market opportunities in the green economy. This report was prepared by Prof. Randall W. Eberts from the W.E. Upjohn Institute for Employment Research Kalamazoo in the United States. It makes a valuable contribution to the OECD LEED work on the transition to a green economy and its implications at the local level. |
| Date: | 2011–05 |
| URL: | http://d.repec.org/n?u=RePEc:oec:cfeaaa:2011/8-en&r=env |
| By: | Fraj Chemak (Rural Economic Laboratory , National Institute for Agricultural Research of Tunisia) |
| Abstract: | In order to cope with the water scarcity, Tunisia has to manage efficiently the demand of the economic and social sectors mainly that of the agricultural irrigated activities. Within this context, this investigation aims to analyze the technical efficiency, the water use efficiency and the dynamic of the productivity of the irrigated areas in the Sidi Bouzid region. Farm surveys have been carried out during 2003 and 2007 harvesting years and technology performance has been assessed using Data Envelopment Analysis approach. Malmquist index has been also computed in order to characterize the productivity change. Empirical findings showed that the technical efficiency of the farms has increased by 19% during this period leading to an improvement of the water use efficiency up to 24%. Both, the technical efficiency change as well as the technical change reveal a positive impact on the productivity change. However, in 2007, the water use efficiency was only 79%. Therefore, farmers have to improve further their irrigated practices in order to save more water. |
| Keywords: | Irrigated Area, Technical Efficiency, Water Use Efficiency, Productivity Change, Data Envelopment Analysis |
| JEL: | C14 Q12 Q25 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:aua:wpaper:2011-1&r=env |
| By: | Nunes, P.A.L.D.; Nijkamp, P. |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:vuarem:2011-2&r=env |
| By: | Kanamura, Takashi; Rachev, Svetlozar T.; Fabozzi, Frank J. |
| Abstract: | This paper proposes a profit model for spread trading by focusing on the stochastic movement of the price spread and its first hitting time probability density. The model is general in that it can be used for any financial instrument. The advantage of the model is that the profit from the trades can be easily calculated if the first hitting time probability density of the stochastic process is given. We then modify the profit model for a particular market, the energy futures market. It is shown that energy futures spreads are modeled by using a meanreverting process. Since the first hitting time probability density of a mean-reverting process is approximately known, the profit model for energy futures price spreads is given in a computable way by using the parameters of the process. Finally, we provide empirical evidence for spread trades of energy futures by employing historical prices of energy futures (WTI crude oil, heating oil, and natural gas futures) traded on the New York Mercantile Exchange. The results suggest that natural gas futures trading may be more profitable than WTI crude oil and heating oil due to its high volatility in addition to its long-term mean reversion, which offers supportive evidence of the model prediction. -- |
| Keywords: | futures spread trading,energy futures markets,mean-reverting process,first hitting,time probability density,profit model,WTI crude oil,heating oil,natural gas |
| JEL: | C51 G29 Q40 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:kitwps:27&r=env |
| By: | Valcu, Adriana; Weninger, Quinn |
| Abstract: | We present a general, dynamic model of within-season harvesting competition in a fishery managed with individual transferable quotas. Markov-Perfect equilibrium harvesting and quota purchase strategies are derived using numerical collocation methods. Our approach allows direct examination of harvest patterns and rent loss due to unattended production externalities. The stock conditions, harvest technologies and demand conditions under which standard rights-based schemes do not replicate first best outcomes are identified. Our results provide new insights for designing rights-based programs that are capable of maximizing economic rent in marine fisheries. |
| Keywords: | Markov Perfect Nash equilibrium; individual transferable quotas; production externalities; resource rent. |
| JEL: | Q2 |
| Date: | 2011–05–24 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genres:33820&r=env |
| By: | Malets, Olga |
| Abstract: | In this paper, I discuss how local actors translate transnational voluntary standards of responsible natural resource management into on-the-ground practices in domestic settings. Building on an extensive study of forest certification in Russia, I argue that implementation is not a straightforward execution of transnational rules imposed by powerful transnational actors - e.g., international NGOs, multinationals, governments or consumers. Rather, local actors negotiate the ways in which transnational standards are implemented locally in both formal and informal settings, and thereby settle political conflicts over natural resource management and construct new knowledge related to standard implementation and good natural resource management. They use both global ideas reflected in transnational standards and locally available concepts and practices as building blocks, and combine them in various ways in order to construct new knowledge. I therefore emphasize stakeholder interest negotiation and collective learning as core social processes which enable the translation of transnational standards into on-the-ground practices. -- Das Papier beschäftigt sich mit der Frage, wie lokale Akteure freiwillige transnationale Standards für verantwortliches Ressourcenmanagement unter lokalen Rahmenbedingungen umsetzen. Auf der Grundlage einer umfangreichen Untersuchung der Waldzertifizierungspraxis in Russland wird argumentiert, dass die Einführung der Standards nicht über die direkte Implementierung transnationaler und durch einflussreiche transnationale Akteure (internationale Nichtregierungsorganisationen, multinationale Konzerne, Regierungen oder Konsumenten) erfolgt. Wie transnationale Standards vor Ort implementiert werden, verhandeln lokale Akteure in formalen und informellen Foren. Sie lösen politische Konflikte im Bereich des Managements natürlicher Ressourcen und bauen neues Wissen über die Implementierung der Standards und ein gutes Ressourcenmanagement auf. Als Bausteine nutzen sie dabei die in transnationalen Standards reflektierten globalen Grundgedanken sowie vor Ort verfügbare Konzepte und Praktiken und kombinieren diese auf verschiedene Weise. Die Verhandlung von Stakeholder-Interessen und kollektives Lernen sind somit zentrale soziale Prozesse bei der Übertragung transnationaler Standards in die Praxis vor Ort. |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:mpifgd:117&r=env |
| By: | Naidu, Sirisha C. |
| Abstract: | This paper reports the results of a statistical investigation of the relationship between labor time expended in rural livelihoods, social structure, and community forest management. The object is to understand the impact of labor constraints to collective action. There are three main results. First, increasing time burden of work has a negative impact on collective forest management. Second, the gendered nature of work imposes a high burden on women and hence impedes their ability to participate in collective management even if incentives exist. In addition, lower access to social infrastructure further increases work burdens and decreases ability to participate. Finally, high levels of wealth lead to lower individual participation but this not because of high opportunity of time worked. |
| Keywords: | time use; collective action; gender; forests; South Asia; India |
| JEL: | Q23 D71 J22 B54 |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:31091&r=env |