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on Environmental Economics |
| By: | Minihan, Erin S.; Wu, Zipling |
| Abstract: | National greenhouse gas (GHG) mitigation strategy can benefit from information on the technical and economic viability of abatement options. The life-cycle-analysis (LCA) and marginal abatement cost curve (MACC) approaches provide a good, although partial, indication for the potential of existing technologies to mitigate GHG emissions. The input-output (IO) approach has advantages in capturing the indirect impacts of technology adoption from shifts in economic structure and linkages between sectors. It is therefore ideal to develop an integrated approach to more accurately assess the overall economic and environmental impacts of climate policy. In this study, we aim to develop such an approach that extends the assessment of viability to include indirect economic and environmental effects of resulting structural shifts in the economy. The new approach is applied to technological GHG mitigation measures in Northern Irelandâs cattle sectors. The main findings indicate there is a marked difference (even reversal under some conditions) in the overall impact of technical reductions in emission-intensity on national output and emissions when adjustments in economic structure are taken into account. |
| Keywords: | GHG mitigation, IO analysis, technical cost, Northern Ireland, Agricultural and Food Policy, Livestock Production/Industries, C67, Q52, Q56, Q58, |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc11:108779&r=env |
| By: | Blandford, David; Gaasland, Ivar; Vardal, Erling |
| Abstract: | Despite the failure of the U.N. Copenhagen climate conference in December 2009 efforts are continuing to reach agreement on binding global commitments on greenhouse gas (GHG) emissions. At the same time, efforts are still underway to conclude the Doha Round of trade negotiations through the World Trade Organization (WTO). Both of these agreements could have a significant impact on the level of activity in agriculture and the GHG emissions that it generates. In this paper we explore strategies to comply with both trade liberalization and GHG emission reduction commitments. We examine the implications of trade liberalization and a carbon tax, both of which affect agricultural output, as means of achieving emission reductions. We emphasize two diametrically different responses to a carbon tax. One adaptation is to change the way agricultural commodities are produced, i.e., choosing less polluting techniques, which we argue will require more land per unit of output. The second response is to use agricultural land for carbon sequestration purposes (offsets), e.g., for perennial grasses or forestry. We show that when an offset option is introduced, production intensity tends to increase, such that emissions per unit of output rise. The theoretical results are illustrated by using a partial equilibrium model of the Norwegian agricultural sector. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc11:108780&r=env |
| By: | Schaller, Lena; Drosler, Matthias; Kantelhardt, Jochen |
| Abstract: | Using a significant amount of public funding, large-scale nature-conservation projects in Germany aim to secure and develop ecologically valuable areas and endangered habitats and species. Due to the substantial land-use changes accompanying these projects, their implementation can also have relevant climate effects â one result which has not been explicitly focused upon previously. Our study analyses major cost positions in implementing such projects, particularly the expense of changing or abandoning agricultural land-use for conservation purposes. We link public funding to relevant climate effects and derive CO2 abatement costs. Therefore we conduct plot-specific ex-post analyses of agricultural land-use and greenhouse-gas (GHG) emissions. Our study takes place in regions where changes in agricultural land-use for conservation purposes have been fully implemented in the past and where climate effects are expected to be high. Our analysis is based on data provided by regional stakeholders and our project partners. First results show that land-use changes for conservation purposes can lead to positive climate effects. The efficiency as regards âabatement costsâ we derive on basis of the data set available lies within the range of costs for alternative measures of climate change mitigation. However it becomes clear that CO2 abatement cannot be seen as the only benefit of such measures; the high cost of agricultural compensation has to be contrasted with further effects such as biodiversity and water conservation |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc11:108797&r=env |
| By: | Heinrich, Barbara; von Cramon-Taubadel, Stephan |
| Abstract: | Greenhouse gas (GHG) emissions are an externality of the pork production process. To respond to climate change concerns and reduce GHG emissions, internalizing this external effect using a market-based economic instrument would be economically efficient. We calculate the welfare effects of GHG emissions using a partial equilibrium model of the German pork market. Sensitivity analysis is used to investigate the impacts of emission prices and emission rates on the welfare effects of reducing GHG emissions. Potential overall welfare gains amount to roughly ⬠360,000 in the base setting and increase to roughly ⬠3 million when emission prices are tripled. This sensitivity highlights the need for more dependable estimates of key parameters such as emission prices and emission rates. However, even the largest estimates of these welfare gains are relatively small. By contrast, the distributional effects of internalizing GHG externalities in pork production for producers, consumers and the state are large in all scenarios. The large redistribution effects that follow from even a small pork price increase as a result of internalizing GHG emissions indicate that attempts to tie German pork production into such policies would be highly controversial but may create incentives to invest in technologies which mitigate GHG emissions. |
| Keywords: | Welfare effects, greenhouse gas emissions, pork production, partial equilibrium model, Environmental Economics and Policy, Food Consumption/Nutrition/Food Safety, H23, Q18, Q54, |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc11:108793&r=env |
| By: | David I. Stern (Crawford School of Economics and Government, The Australian National University); John C. V. Pezzey (Fenner School of the Environment and Society, The Australian National University); N. Ross Lambie (Crawford School of Economics and Government, The Australian National University) |
| Abstract: | Countries with low marginal costs of abating carbon emissions may have high total costs, and vice versa, for a given climate mitigation policy. This may help to explain different countries' policy stances on climate mitigation. We hypothesize that, under a common percentage cut in emissions intensity relative to business as usual (BAU), countries with higher BAU emissions intensities have lower marginal abatement costs, but total costs relative to output will be similar across countries; and under a common carbon price, relative total costs are higher in emissions-intensive countries. Using the results of the 22nd Energy Modeling Forum, we estimate marginal abatement cost curves for the US, EU, China, and India, which we use to estimate marginal and total costs of abatement under a number of policy options currently under international debate. The results of this analysis provide support for our hypotheses. |
| JEL: | Q52 Q54 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:een:ccepwp:1111&r=env |
| By: | Budy P. Resosudarmo (Indonesia Project, The Arndt-Corden Department of Economics, Crawford School of Economics & Government, Australian National University, Canberra, ACT, Australia); Abdurohman (The Arndt-Corden Department of Economics, Crawford School of Economics & Government, Australian National University, Canberra, ACT, Australia) |
| Abstract: | In common with other archipelagic countries, Indonesia is vulnerable to such impacts of climate change as prolonged droughts, increased frequency in extreme weather events, and heavy rainfall resulting in floods. These threats, coupled with the fact that Indonesia has been declared one of the three biggest greenhouse gases emitters, has induced the Indonesian government to place a high priority on climate change issues. In particular, the government considers its fiscal policy to be a key instrument in both mitigating against and adapting to climate change. This paper reviews Indonesia's implementation of green fiscal policies and discusses recent Indonesian fiscal policy responses to its commitment to reduce its emissions by 2020. In general, one can conclude that although progress has been made in the area of green fiscal policy in Indonesia, a more vigorous approach is needed to protect Indonesia's environment and to cope with the new challenges of controlling CO2 emission in the era of climate change. |
| JEL: | H30 H23 H61 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:een:ccepwp:1109&r=env |
| By: | Alistair Ulph; David Ulph |
| Abstract: | We analyse the optimal design of climate change policies when a government wants to encourage the private sector to undertake significant immediate investment in developing cleaner technologies, but the relevant carbon taxes (or other environmental policies) that would incentivise such investment by firms will be set in the future. We assume that the current government cannot commit to long-term carbon taxes, and so both it and the private sector face the possibility that the government in power in the future may give different (relative) weight to environmental damage costs. We show that this lack of commitment has a significant asymmetric effect: it increases the incentive of the current government to have the investment undertaken, but reduces the incentive of the private sector to invest. Consequently the current government may need to use additional policy instruments – such as R&D subsidies – to stimulate the required investment. |
| Keywords: | Climate Change; Emissions Taxes; Impact on R&D; Timing and Commitment |
| JEL: | H23 Q54 Q55 Q58 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:san:wpecon:1104&r=env |
| By: | Saunders, Caroline M.; Guenther, Meike; Tait, Peter; Kaye-Blake, William; Saunders, John; Miller, Sini; Abell, Walt |
| Abstract: | With current concerns about climate change and the general status of the environment, there is an increasing expectation that products have sustainability credentials, and that these can be verified. Labelling is a common method of communicating certain product attributes to consumers that may influence their choices. There are different types of labels with several functions. The aim of this study was to investigate consumersâ, attitudes, knowledge and preferences towards certain sustainability claims on food products across countries; particularly attitudes towards the display of the reduction of carbon emissions were examined in this research. A web-based consumer survey undertaken in the United Kingdom and Japan showed similarities between consumers in the UK and Japan regarding desired label claims of environmental product information. Differences across these countries were observed in terms of the knowledge about certain environmental and social issues such as carbon footprint and sustainability. This information on consumersâ attitudes will assist industries and firms to identify market opportunities, in particular assessing the methods by which carbon footprinting measures can be incorporated alongside information on other sustainability criteria in product ma |
| Keywords: | FOOD LABELLING, CARBON FOOTPRINT, SUSTAINABILITY, CROSS-COUNTRY COMPARISON, UNITED KINGDOM, JAPAN, Food Consumption/Nutrition/Food Safety, |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc11:108953&r=env |
| By: | Pedro Herrera (Departamento de Economía - Pontificia Universidad Católica del Perú); Oscar Millones (Departamento de Economía - Pontificia Universidad Católica del Perú) |
| Abstract: | This study estimates the economic cost of mining pollution on water resources for the years 2008 and 2009 based on the conceptual framework of Environmental Efficiency (Pittman, 1981.1983, Färe et al., 1989, 1993, 2003; Rao, 2000). This framework understands such costs as the mining companies trade-off between increasing production that is saleable at market prices (desirable-output) and reducing environmental pollution that emerges from the production process (output-undesirable). These economic costs were calculated from parametric and nonparametric production possibility frontiers to 28 and 37 mining units in 2008 and 2009, respectively, which were under the purview of the National Campaign for Environmental Monitoring of Effluent and Water Resources conducted by Energy and Mining Investment Supervisory Agency (OSINERGMIN) in those years. The results show that the economic cost of mining pollution on water resources raised to $ 814.7 million and U.S. $ 448.8 million for 2008 and 2009, respectively. This economic cost was highly concentrated in a few mining units, within a few pollution parameters, and was also higher in mining units with average/low mineral production. The Analysis of Variance (ANOVA) and the Tobit regressions were not able to identify a pattern that explains the economic costs by using institutional, spatial and operational variables, which may be noted that it could be explained by factors related to the environmental management of mining production process. Taking into consideration that at present the fine and penalty system in the mining sector is based on an administrative-criteria, which does not fine for the potential environmental damage generated, the results of this study highlight the need to redesign this system based on an economic-criteria in order to establish a preventive mechanism of the pollution process in order to generate the necessary incentives for mining companies to address negative externalities that emerge from their production process. |
| Keywords: | Environmental Efficiency, shadow prices, production possibility frontiers, distance functions, environmental externalities, mining extractive companies |
| JEL: | Q53 Q25 H23 C67 D24 D21 Q28 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:pcp:pucwps:wp00321&r=env |
| By: | McVittie, Alistair; Hussain, Salman; Brander, Luke; Wagtendonk, Alfred; Verbur, Peter; Vardakoulias, Olivier |
| Abstract: | Food security is a major current and future policy concern. The world population is projected to reach 9 billion by 2050 and continuing growth in economic output and incomes is expected to result in changing food consumption patterns. In particular the wider adoption of âWesternâ diets will result in both higher calorie intake and greater meat consumption. Continuing climate change is expected to add further pressures to agricultural production. This paper presents the results of a global analysis funded by the TEEB study on the environmental benefits of investment in agricultural knowledge, science and technology, specifically in terms of closing the gaps between developing and developed country agricultural productivity. The results show that by easing pressures on land use change on terrestrial biomes (forests and grasslands), and the ecosystem services they provide, investment in agricultural science and technology provides environmental benefits of US$161.3bn per annum in 2050. Between 2000 and 2050 these benefits amount to US$2,964bn in addition to US$6,343bn in carbon benefits and compare to costs of US$5,68bn |
| Keywords: | Research and Development/Tech Change/Emerging Technologies, |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc11:108955&r=env |
| By: | Budy P. Resosudarmo (Indonesia Project, The Arndt-Corden Department of Economics, Crawford School of Economics & Government, Australian National University, Canberra, ACT, Australia); Frank Jotzo (Crawford School of Economics & Government, Australian National University, Canberra, ACT, Australia); Arief A. Yusuf (Economics Department, Padjadjaran University Author-Name: Ditya A. Nurdianto; Indonesian Ministry of Foreign Affairs) |
| Abstract: | Indonesia is among the largest 25 carbon dioxide emitting countries when considering only fossil fuels, and among the top three or five when emissions due to deforestation and land use change are included. Emission per capita from fossil fuels are still low in comparison with other countries, but have been growing fast, and are likely to overtake those from deforestation and land use change in the future. This paper argues the importance for Indonesia to start developing strategies to mitigate its emissions from fossil fuel combustion. It analyses the main drivers of the increase in emissions, identifies the options and challenges in reducing the future growth in emissions. Policy options are reviewed that would enable the Indonesian economy to keep on growing, but with a much lower carbon output. |
| JEL: | Q54 Q40 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:een:ccepwp:1108&r=env |
| By: | Butler, Allan; Hobbs, Phil; Winter, Michael |
| Abstract: | Expanding Anaerobic Digestion (AD) in the UK will not only depend upon finding appropriate economic structures to support onâfarm developments but also an appreciation of environmental issues such as less Greenhouse Gas (GHG) emissions; reduced use of artificial fertilisers; and better management of farm wastes. At the core of this paper is the Anaerobic Digestion Analytical Model (ADAM) that examines the economic and environmental impacts of integrating AD into UK farming systems. However, the average dairy farm in the UK is not of sufficient size to enable profitable biogas production. Indeed, farm size, as represented by FBS/FAS data used in ADAM, needs to be scaled by three to four times for a biogas enterprise to breakâeven. To boost profitability, some farms may use additional energy (food and non food) crops as well as other high energy sources such as biodiesel residues etc. In some circumstances, possibilities may exist for neighbouring farmers to coâoperate and manage a biogas installation that processes manures and energy crops to increase the scale of an onâfarm plant. Despite issues of scale however, onâfarm AD plants do have the capacity to (i) reduce Carbon Dioxide equivalent (CO2e) emissions that a dairy farm produces; and (ii) the byâproduct of digestate provides farms with greater nutrient availability for crops. |
| Keywords: | Anaerobic digestion, biogas, dairy farming, carbon dioxide, nutrients, digestate, Environmental Economics and Policy, Farm Management, |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc11:108937&r=env |
| By: | Ian Gough; Sam Marden |
| Abstract: | This paper asks whether the policies and programmes enacted to reduce greenhouse gas emissions in the UK will compete with other goals of public policy, in particular social policy goals. The Climate Change Act 2008 has set the UK some of the most demanding targets in the world: to reduce GHG emissions (compared with 1990) by at least 80% by 2050 and by at least 34% by 2020 - just nine years away. A wide array of climate change mitigation policies (CCMPs) have been put in place to bring this about. Will these compete fiscally with the large public expenditures on the welfare state? We address this question by surveying and costing all UK government policies that have a climate change mitigation objective and which are expressed through taxation, government expenditures and government-mandated expenditures by energy suppliers and other businesses and which are directed toward the household sector. Our conclusion is that expenditures on CCMPs are tiny - around one quarter of one per cent of GDP - and will not rise significantly. Within this the share of direct spending by government will fall and that obligated on utility companies will rise. Green taxes are also planned to fall as a share of GDP. There is no evidence here of fiscal competition between the welfare state and the environmental state. However, the use of mandated electricity and gas markets will impose rising costs on the household sector, which will bear more heavily on lower income households and will increase 'fuel poverty'. Thus demands on traditional social policies are likely to rise. More radical policy reforms will be needed to integrate climate change and social policy goals. |
| Keywords: | carbon mitigation policy, social policy, fiscal competition |
| JEL: | Q58 I38 H53 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sticas:case145&r=env |
| By: | Debnath, Debnath; Stoecker, Art; Boyer, Tracy; Sanders, Larry D. |
| Keywords: | Economic optimization, Lake levels, Marketed and non-marketed water uses, Non-linear programming, Recreational benefits, Reservoir management, Stochastic inflows, Value of a visitor day, Environmental Economics and Policy, International Development, Land Economics/Use, Production Economics, Productivity Analysis, Public Economics, Resource /Energy Economics and Policy, Risk and Uncertainty, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:waea11:108178&r=env |
| By: | Whittington, Dale; Pagiola, Stefano |
| Abstract: | In this paper we review CV studies conducted in the context of PES programs, almost all of which attempt to estimate the demand of downstream water users for upstream watershed protection and, more generally, for improved water services. Our objective is to assess the quality of these CV-PES studies, and their usefulness for designing PES programs. |
| Keywords: | payments for environmental services; contingent valuation; stated preferences; water users; willingness to pay |
| JEL: | Q5 Q51 |
| Date: | 2011–06–25 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:32730&r=env |
| By: | Saamah Abdallah; Ian Gough; Victoria Johnson; Josh Ryan-Collins; Cindy Smith |
| Abstract: | This paper maps the distribution of total direct and embodied emissions of greenhouse gases by households in the UK and goes on to analyse their main drivers. Previous research has studied the distribution of direct emissions by households, notably from domestic fuel and electricity, but this is the first to cover the indirect emissions embodied in the consumption of food, consumer goods and services, including imports. To study total emissions by British households we link an input-output model of the UK economy to the UK Expenditure and Food Survey. Results are presented as descriptive statistics followed by regression analysis. All categories of per capita emission rise with income which is the main driver. Two other variables are always significant: household composition, partly reflecting economies of scale in consumption and emissions in larger households, and employment status. This 'standard' model explains 35% of variation in total emissions, reflecting further variation within income groups and household types. We also compute the distribution of emissions derived from the consumption of welfare state services: here, lower income and pensioner households 'emit' more due to their greater use of these services. To take further account of the social implications of these findings, we first estimate emissions per £ of income. This shows a reverse slope with emissions per £ rising as one descends the income scale. The decline with income is especially acute for domestic energy, housing and food emissions, 'necessary' expenditures with a lower income elasticity of demand. Next, we move away from per capita emissions by assuming children under 14 emit half that of adults, which reduces disparities between household types. To implement personal carbon allowances, further research will be needed into the carbon allowances of children and single person households. Current government policies to raise carbon prices mainly in domestic energy are found to be especially regressive, but tracking total carbon consumption within a country would require radical changes in monitoring carbon flows at national borders. In the meantime, poorly targeted policies to compensate 'fuel poor' families should give way to more radical 'eco-social' policies, such as house retrofitting, coupled with 'social' tariffs for domestic energy. |
| Keywords: | household income distribution, greenhouse gas emissions, carbon policies, social policies, direct and embodied emissions |
| JEL: | H23 I32 |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sticas:case152&r=env |
| By: | Fraser, Rob W. |
| Abstract: | This paper extends the multi-period agri-environmental contract model of Fraser (2004) so that it contains a more realistic specification of the inter-temporal penalties for non-compliance, and therefore of the inter-temporal moral hazard problem in agri-environmental policy design. On this basis it is shown that a farmer will have an unambiguous preference for cheating early over cheating late in the contract period based on differences in the expected cost of compliance. It is then shown how the principal can make use of this unambiguous preference to target monitoring resources intertemporally, and in so doing, to encourage full contract duration compliance. |
| Keywords: | Moral Hazard, Contract Duration, Agri-Environmental Policy, Targeting, Agribusiness, Environmental Economics and Policy, Q15, Q18, Q58, |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc11:108795&r=env |
| By: | Dupont, Diane P. |
| Abstract: | Climate change may cause more frequent seasonal water shortages. Water-scarce countries already use reclaimed household wastewater for subsequent uses that do not require potable water. Views on the degree of acceptability of reusing wastewater and a distrust of oneâs water provider may deter countries like Canada and the United Kingdom from adopting these technologies. This paper reports on results from a 2009 Canadian Internet-based contingent valuation study. Two water management programs were presented: a program to reduce summer water use through water restrictions and a program to allow citizens to avoid summer water restrictions through the use of reclaimed household wastewater. The paper estimates the willingness-to-pay (WTP) for the second program and finds trust in the water utility, belief in future drought conditions, and age to be important factors, as is the belief that members of oneâs community will not voluntarily reduce water use by the required amount. The latter introduces a potential endogeneity bias in responses to discrete choice WTP questions. Joint estimation of the underlying WTP function with a model to explain a respondentâs belief in community free riding is undertaken. The paper contributes to the literature on valuing the avoidance of water restrictions, elicitation of free riding beliefs, and the use of endogenous regressors in discrete choice models |
| Keywords: | water shortages, reclaimed wastewater, WTP, free riding beliefs, endogeneity in discrete choice models, Environmental Economics and Policy, Q25, Q51, Q53, |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc11:108778&r=env |
| By: | Louw, Andre; Ndanga, Leah Z.B. |
| Abstract: | This paper seeks to describe and discuss the impact that climate changes, and other challenges in terms of sustainability, have had on Africa and particularly on South Africa. It seeks to discuss the extent to which these changes directly and indirectly impact agriculture and the measures that are currently underway, with particular reference to South Africa, as well as suggest other strategies that could be implemented to attenuate the effects of climate change, thereby advancing the global shift towards sustainability. The paper discusses environmental and other changes that have taken place in Africa and asserts that the continent is in a particularly difficult situation in light of the debate on sustainability versus productivity. The fact that most of the worldâs rural poor depend on agriculture and that climatic changes have created new complications makes it more difficult to meet the MDGs and impedes economic development. This is especially relevant in light of the financial crisis and the drop in aid from the developed world. However, although more still needs to be done, it should be noted that significant progress has been made and projects and strategies are currently underway to utilize the regionâs natural advantages. |
| Keywords: | sustainability, agriculture, South Africa, climate change, Environmental Economics and Policy, Farm Management, |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaae10:96810&r=env |
| By: | Harry Clarke (School of Economics and Finance, La Trobe University, Melbourne); Robert Waschik (School of Economics and Finance, La Trobe University, Melbourne) |
| Abstract: | The impact of international carbon control measures Ð and the absence of such measures Ð on Australian carbon pricing policies are analyzed both at a theoretical and empirical level. While theory and interest group advocacy suggest a potential case for destination accounting of carbon emissions and border tax adjustments and/or export exemptions, this case is sometimes exaggerated. For example, in the ferrous metals sector, empirical analysis suggests that gains from such refinements are low since carbon leakages and adverse competitiveness effects are small. In other sectors Ð such as non-ferrous metals Ð the effects are more pronounced. Exaggerating the competitiveness costs of carbon pricing runs the risk of policy overreaction and unintended protectionism, dramatically increasing the costs of Australian carbon pricing policies. Providing free and tradable emission quotas to exporters and import competing sectors is a 'second best' policy but one with practicality in sectors where adverse competitiveness effects do need to be addressed. |
| JEL: | Q54 |
| Date: | 2011–05 |
| URL: | http://d.repec.org/n?u=RePEc:een:ccepwp:1112&r=env |
| By: | Mandleni, B.; Anim, F.D.K. |
| Abstract: | The main objective of this study was to investigate the factors that affected the decision of small-scale farmers who kept cattle and sheep on whether to adapt or not to climate changes. The Binary Logistic Regression model was used to investigate farmersâ decision. The results implied that a large number of socio-economic variables affected the decision of farmers on adaptation to climate changes. The study concluded that the most significant factors affecting climate change and adaptation were non-farm income, type of weather perceived, livestock ownership, distance to weather stations, distance to input markets, adaptation choices and annual average temperature. |
| Keywords: | Climate change, small-scale cattle and sheep farming, Binary logistic model, Farm Management, |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc11:108962&r=env |
| By: | Sauer, Johannes; Walsh, John |
| Abstract: | This study empirically investigates the cost-effectiveness of different agri-environmental policy instruments. We compare the Environment Stewardship Scheme (ESS) as an example for a management agreement type instrument, to the Nitrate Vulnerable Zones (NVZ) as an example for a command-and-control type instrument. Both instruments are currently applied in the UK. Based on a simple cost model considering also relevant transaction costs and risk we use different regression and resampling techniques to estimate the marginal effects of different factors with respect to the instrumentsâ relative cost-effectiveness and to identify factors for cost variation over space and time. We control for the actual level of compliance by using compliance weighted average scheme cost ratios. The findings suggest that the ESS instrument has a higher cost-effectiveness whereas the NVZ instrument is more expensive on a general level. However, if the focus is on compliance weighted cost ratios, the picture changes somewhat. Further, we find a significant regional variation in the cost-effectiveness for both instruments as well as a significant variation over time. |
| Keywords: | Agri-Environmental Instruments, Costs, Risk, Risk and Uncertainty, |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc11:108963&r=env |
| By: | Bush, Glenn; Hanley, Nick; Rondeau, Daniel |
| Abstract: | Reducing deforestation and forest degradation will mean imposing restrictions on the use of forest resources by households that currently use natural forests to maintain their livelihoods. An emerging issue in forest monitoring is the need to assess social and economic impacts in forest user communities of alternative policy and management approaches. Implicit but often unrecognized in forest management strategies focused on integrating people into forest management is that communities are not homogeneous , implying an important degree of variation in the costs of forest use restrictions across households. Quantitative economic methods are essential to a robust measurement of the real socio-economic impacts of forest management and conservation programs, and to adequately design compensation packages to offset local costs. A key entry point to understanding the scope of impact in design of a forest management program, under conditions of local subsistence use, is assessing the minimum compensation necessary to incentivize forest conservation. Two principal valuation approaches exist, financial and economic. The latter measures both financial and social values; but which approach should we use? The selection of valuation approach can dramatically impact estimates of the compensation required to affect real change in forest conservation. Empirical evidence on the divergence of different value measures are presented for four case study forests under different governance arrangements in Uganda. A contingent valuation (CV) survey was administered alongside a market price (MP) method household survey for park-adjacent households. In the CV survey respondents were asked to state their minimum level of compensation required to forgo access to timber and non-timber forest products from their local protected area for a period of one year, whilst the MP survey estimated total annual household income from all sources e.g. agriculture, livestock and forest access. Data were collected from households in areas adjacent to the forests according to a stratified random sample (n=690). Distributional differences in forest income and welfare values are examined, to illustrate the strengths and weaknesses of different valuation approaches for estimating the benefits of forest use. We find that a range of complimentary conclusions can be drawn from the two techniques. Together, they provide contrasting information on the importance of forest income to heterogeneous rural households and they can help assess the potential effectiveness of alternative forest management strategies and governance arrangements. |
| Keywords: | contingent valuation; forest income; protected areas; costs of conserv ation |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:stl:stledp:2011-12&r=env |
| By: | Andrea Ghermandi (Department of Economics, University Of Venice Cà Foscari); Paulo A.L.D. Nunes (Marine Economics Research Programme, The Mediterranean Science Commission – CIESM, Principauté de Monaco; Department of Agriculture and Natural Resources Economics – TESAF, University of Padova, Italy) |
| Abstract: | The welfare dimension of the recreational services provided by global coastal ecosystems is examined through a meta-analytical regression based valuation approach. First, we construct a global, state-of-the-art database of stated and revealed preference estimates on coastal recreation, which includes also the grey literature and with the latest entry updated to February 2010. Second, the profile of each of the 253 observations of our dataset, which correspond to individual value estimates, was further enriched with characteristics of the built coastal environment (site accessibility, anthropogenic pressure, level of human development), characteristics of the natural coastal environment (presence of protected area, type of ecosystem, and marine biodiversity richness), geo-climatic factors (temperature and precipitation), as well as sociopolitical characteristics, such as the political stability index. In this context, the proposed meta-analytical valuation exercise explores the spatially explicit dimension of the values building upon Geographic Information System (GIS) tools. GIS are relied upon for the spatial characterization of the valued ecosystems, the determination of the role of spatially explicit variables in the meta-analytical value transfer model, as well as for the value transfer exercise. The GIS characterization reveals to be extremely significant in explaining the spatial diversity of the estimates values and underlying explanatory factors. The resulting integrated valuation framework constitutes a worldwide première and it results in the first global map of the recreational value of coastal ecosystems. We argue that the presented global map may play an important role in studying the prioritization for the conservation of coastal areas from a social perspective. |
| Keywords: | Built coastal environment, Natural coastal environment, Ecosystem service valuation, Geographic Information Systems, Mapping ecosystem values, Marine biodiversity, Scaling up, Spatial analysis, Spatial economic valuation, Value transfer |
| JEL: | C53 Q26 Q57 R12 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ven:wpaper:2011_08&r=env |
| By: | Omotesho, O.A.; Fakayode, S.B.; Tariya, Y. |
| Abstract: | Global trends nowadays towards long term sustainable crop production is hinged on either supplementing the use of chemical fertilizers with organic materials or a complete use of organic materials. This is more so since substituting chemical fertilizers with organic materials reduces the risks of exposure to ailments that arise on account of synthetic compounds and increases farmersâ gains via reduced soil erosion and carbon emissions and increased bio-diversity. In this vein, the current study investigated organic materials use in Nigeriaâs agriculture. Specifically, the study examined availability and use of chemical fertilizer and organic materials substitutes and investigated factors affecting the use of organic materials in the Nigerian food sector. The study data were drawn from a survey of sixty-one farm households that used organic materials as major nutrients inputs or as supplement with chemical fertilizers for their cropping activities. The study area is Shira in Nigeria. Farmers in this area usually incorporate the use of organic materials in their agriculture. The descriptive statistics and regression analyses were used to analyse the study data. Results indicate that farmers in the study area source their chemical fertilizer inputs from the open market at an exorbitant price of N2000 (US dollar $13.8) per bag on average thereby using very low rates of chemical fertilizers. Organic materials used by farmers were sourced from cattle, goats, sheep and poultry droppings. The quantity of organic material used was 12,513.0 kg per hectare at a cost of N15,015.6 (US dollar $103.5). Major constraints in the use of organic materials by farmers include poor transport facilities and cutworm infestations of the organic materials. Factors revealed to influence the quantity of organic material used by farmers were the cost of organic materials and the quantity of chemical fertilizers used by the farmers. The study therefore calls for stakeholders in the food sub-sector to encourage the establishment of blending plants for the production of organic materials, burning of organic materials before usage, and the need to enhance researches aimed at establishing optimal material mixtures and application rates for organic materials used in the Nigerian farming systems. |
| Keywords: | farming systems, bio-diversity, carbon emissions, cut worm infestation, food sub-sector, sheep, goat, poultry, optimal mixtures, Crop Production/Industries, Environmental Economics and Policy, |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaae10:97093&r=env |
| By: | Ferrara, Andreas; Lange, Ian |
| Abstract: | In the last decade, voluntary environmental programs have increased considerably in scope. A novel use of these programs is to di¤use new technology in industry as means to improving their environmental outcomes. This paper tests whether the US Environmental Protection Agency s Combined Heat-and-Power Partnership has encouraged the installation of CHP applications since its start in 2001. Two hypotheses are tested here, whether (i) the Partnership has encouraged the installation of CHP applications and (ii) if the partnership has encouraged utilization of CHP once installed. Using nearest neighbor matching on data for electricity plants in the US, results nd weak evidence that the program has helped CHP system spread, controlling for the selection of rms into the partnership. |
| Keywords: | Fossil Fuels; Combined Heat and Power; Voluntary Environmental Measure s |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:stl:stledp:2011-16&r=env |
| By: | Martin, Elsa; Destandau, Francois; Rozan, Anne |
| Abstract: | The purpose of this paper is to analyze the implication of wetland construction for the cost-effective design of a pesticide charge. A model is developed in order to show that, for a given target, the introduction of wetland construction can reduce overall abatement costs and can lower the input charge asked to the farmers. This result remains true as long as the cost of constructing a wetland is not too high. A numerical illustration is carried out in order to simulate pesticide regulations in a wine catchment in North-East of France |
| Keywords: | water policy, constructed wetlands, agricultural pollution regulation, Agribusiness, Land Economics/Use, Q25, Q58, K32, |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc11:108777&r=env |
| By: | de Vries, Frans P.; Dijkstra, Bouwe R.; McGinty, Matthew |
| Abstract: | This paper examines the interdependence between imperfect competition and emis- sions trading in a two-sector (clean and dirty) economy. We compare the welfare implica- tions of an absolute cap-and-trade scheme (permit trading) with a relative intensity-based scheme (credit trading). We nd unambiguously more clean rms in the long run under credit trading. However, neither emissions trading con guration creates the rst-best out- come: there are too few (many) clean rms under permit (credit) trading. Permit trading dominates credit trading in terms of overall welfare at the long run equilibrium, except when policy is relatively lenient. It is also demonstrated that stricter policy does not necessarily induce the clean sector to grow relative to the dirty sector and we determine under what conditions this holds. |
| Keywords: | sectoral dynamics; pollution control; industrial change; imperfect competition; emissions trading |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:stl:stledp:2011-15&r=env |
| By: | Mandleni, B; Anim, F.D.K. |
| Abstract: | This paper investigated the extent of awareness of climate change by livestock farmers in the Eastern Cape Province of South Africa. It further explored the choice of adaptation measures that were followed and factors that affected adaption measures. The results indicated that marital status, level of education, formal extension, temperatures and the way in which land was acquired, significantly affected awareness of climate change. Variables that significantly affected adaptation selections were gender, formal extension, information received about climate change, temperatures and 2 the way in which land was acquired. The study suggested that the positive and significant variables that affected awareness and adaptation measures by livestock farmers be considered when awareness and adaptation strategies are implemented. |
| Keywords: | Climate change awareness, Heckmanâs two step probit model, decisions to adapt, Farm Management, |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc11:108794&r=env |
| By: | Stephen Howes (Crawford School of Economics & Government, Australian National University, Canberra, ACT, Australia); Frank Jotzo (Crawford School of Economics & Government, Australian National University, Canberra, ACT, Australia); Paul Wyrwoll (Crawford School of Economics & Government, Australian National University, Canberra, ACT, Australia) |
| Abstract: | Today the idea that climate change requires a gradual and moderate response no longer commands consensus support among economists. A more demanding approach is gaining ground. This paper traces the changes in economic thinking concerning the case for action on climate change, through an analysis of the work of three eminent economists: William Nordhaus, Nicholas Stern and Ross Garnaut. It shows how from Nordhaus to Stern to Garnaut the case for more urgent and radical mitigation has been strengthened as temperature targets have been lowered and business-as-usual emissions projections raised. It also shows that Stern and especially Nordhaus, who has been working on this subject the longest, have changed their own views in favour of more urgent and radical mitigation. Some disagreements remain between these three economists, and some other economists have more moderate views, but the old consensus has been shattered. |
| JEL: | Q54 |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:een:ccepwp:1107&r=env |
| By: | Phetcharat, Chaowana; Stoecker, Art; Hattey, Jeffory A.; Warren, Jason G.; Vitale, Jeffrey D.; Park, Seong Cheol |
| Keywords: | Swine Effluent Irrigation, Environmental Economics and Policy, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:waea11:108549&r=env |
| By: | Muhammad, Shahbaz; Tiwari, Aviral; Muhammad, Nasir |
| Abstract: | This paper explores the effects of financial development, economic growth, coal consumption and trade openness on environmental performance using annual data over the period of 1965-2008 for South African economy. ARDL bounds testing approach to cointegration has used to test the long run relationship among the variables while short run dynamics have been investigated by applying error correction method (ECM). Unit root problem is checked through Saikkonen and Lutkepohl [1] structural break unit root test. Our findings confirmed long run relationship among the variables. Results showed that a rise in economic growth increases energy emissions while financial development lowers it. Coal consumption has significant contribution to deteriorate environment significantly. Trade openness improves environmental quality by lowering the growth of energy pollutants. EKC is also existed. |
| Keywords: | Coal Consumption; Economic Growth; Environment |
| JEL: | F18 P28 |
| Date: | 2011–08–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:32723&r=env |
| By: | Mungatana, Eric D.; Ahimbisibwe, Peter Beine |
| Abstract: | This paper presents the results of a household survey designed to qualitatively evaluate the impacts of the invasive alien species Senna spectabilis on the distribution of welfare across dependent communities in Budongo forest reserve (BFR) in Uganda. BFR is the largest forest reserve in Uganda with globally significant conservation values. The study establishes that households in BFR have high levels of knowledge on its conservation values, they are aware of the invasiveness of S. spectabilis and its potential to compromise the conservation values of BFR, and that S. spectabilis confers tangible benefits to dependent households, whose levels significantly vary with proximity to the reserve. The study concludes by evaluating strategies designed to manage the spread of S. spectabilis in BFR which consider its demonstrated socioeconomic impacts. |
| Keywords: | Invasive Senna spectabilis, distribution of impacts, Budongo forest reserve, Uganda, Resource /Energy Economics and Policy, |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaae10:97330&r=env |
| By: | Cui, Cathy Xin; Hanley, Nick; McGregor, P. G. (Peter Gregor); Soo, Jung Ha; Swales, J. Kim; Turner, Karen; Yin, Ya Ping |
| Abstract: | This paper examines the issue of decoupling economic growth and pollution through growth driven by productivity improvements; and the extent to which pollution effects spill over national borders. Focus is widened from conventional production measures of pollution to a consumption accounting principle (carbon footprints). This adds a useful dimension to understanding pollution leakage effects. Using an interregional empirical general equilibrium framework, we consider the impacts of productivity growth in one region in that region and a neighbour linked through trade in goods and services and in the factor of production that is targeted with the productivity improvement (here through interregional migration of labour). The key finding is that while economic growth resulting from the productivity improvement in one region is accompanied by increased absolute pollution levels across both regions, positive competitiveness effects lead to a reduction in imports and pollution embodied therein to both regions from the rest of the world. |
| Keywords: | carbon footprints; pollution leakage; economic growth; factor mobility; labour productivity |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:stl:stledp:2011-13&r=env |
| By: | Howley, Peter |
| Abstract: | The central aim of this study was to gain greater insights into the factors that affect individualsâ preferences for a variety of landscape settings. To achieve this aim, this paper derived dependent variables (based on a factor analysis of respondents mean ratings of 47 landscape images) representing 5 different landscape categories. These variables were then utilized in separate OLS regression models to examine the effect of personal characteristics, residential location and environmental value orientations on landscape preferences. First in terms of visual amenity the results suggest that the general public have the strongest preference for landscapes with water related features as its dominant attribute which was followed by cultural landscapes. Second the results also demonstrate how there is significant heterogeneity in landscape preferences as both personal characteristics and environmental value orientations were found to strongly influence preferences for all the landscape types examined. Moreover the effect of these variables often differed significantly across the various landscape groupings. In terms of land use policy, given the diversity of preferences a one size fits all approach will not meet the general publicsâ needs and desires. |
| Keywords: | Landscape preferences, environmental attitudes, Land Economics/Use, |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc11:108956&r=env |
| By: | Weber, Daniela |
| Abstract: | Chinasâ successfully increased food production during the last 30 years has caused significant negative external impacts and subsequent escalating environmental costs (Ash and Edmonds, 1998). This dilemma has recently become a popular issue and the government attaches great importance towards a more sustainable agricultural production (UNDP, 2006). The challenge is to enhance well-grounded approaches that accomplish of effective agricultural trainings, encouraging farmers to adopt optimized practices. According to recent decision-making theories, a successful implementation is also closely related to the target groupâs social and cognitive preferences. In order to get more information about farmersâ inherent decision-making factors an explorative quantitative survey of 394 farmers was conducted in Shandong Province. Next to descriptive economic and agronomic analyses, a structural equation model gave evidence that beside farmersâ economic reasons, values and guÄnxi-relationships indeed show an influence on the extracted agri-environmental attitude factors as well as on manifest behaviour variables. Concluding results reveal the farmers varying preferences and give explanations out of the social and cognitive paths to explain why they behave different or have other focussed attitudes. Finally, recommendations for more effective training methods are given that consider the farmersâ individual motivations. |
| Keywords: | China, agri-environmental attitudes, guÄnxi, SEM, values, Land Economics/Use, |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc11:108964&r=env |
| By: | Renwick, Alan W.; Jansson, Torbjorn; Verburg, Peter H.; Revoredo-Giha, Cesar; Britz, Wolfgang; Gocht, Alexander; McCracken, Davy |
| Abstract: | This paper examines the potential impact of agricultural and trade policy reform on land-use across the EU focussing particularly on the issue of land abandonment. Using a novel combined application of the well established CAPRI and Dyna-CLUE models it estimates the extent of change across Europe under removal of Pillar 1 support payments and trade liberalisation. Overall, it is estimated that around 8 per cent less land will be farmed under these reforms than under the baseline situation. However, some regions, areas and farm types face more significant reductions. The reforms are particularly felt on livestock grazing farms situated in the more marginal areas of Europe, which also coincide with areas of high nature value. Therefore, farmland biodiversity is likely to be reduced in these areas. However, using a range of environmental indicators, relating to nutrient surpluses, GHG emissions, soil erosion and species abundance, an overall improvement in the environmental footprint of agriculture is likely. In addition, the economic efficiency of the agricultural sector will probably improve. The paper considers several possible options available to deal with any negative aspects of land abandonment. Following the FAO (2006), it is argued that untargeted, rather general agricultural policy measures which maintain land in production are likely to be an ineffective and inefficient way to address the perceived negative consequences of abandonment. A more holistic approach to rural development is required, tailored to the specific context within each area. |
| Keywords: | Agricultural Policy, Land Use Change, Land Abandonment, Agricultural and Food Policy, |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc11:108772&r=env |
| By: | Abdu-Raheem, K.A. |
| Abstract: | This paper addresses the problem of extending biodiversity conservation onto the communal lands of the Dwesa-Cwebe conservation area in the Eastern Cape, South Africa, by investigating the conditions that must be fulfilled for any success to be registered. These conditions were derived based on a qualitative survey conducted in the Nqabara Administrative Area. The study developed a conceptual framework to unravel the complex nature of the whole community conservation initiative. A focus group discussion was adopted as the data collection method; and the underlying factors that have contributed to the success of the initiative in the Nqabara Administrative Area were identified. Appropriate coding was assigned to each distinct and major factor for proper presentation of the results and observations were appropriately indicated to buffer the explanation of the achieved results. Recommendations were subsequently made for the Dwesa-Cwebe in terms of the decision-making instruments that demand critical consideration for any successful community biodiversity conservation to be achieved. |
| Keywords: | Dwesa-Cwebe, Nqabara, biodiversity conservation, communal land, Resource /Energy Economics and Policy, |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaae10:97069&r=env |
| By: | Leat, Philip M.K.; Lamprinopoulou, Chrysa; Revoredo-Giha, Cesar; Kupiec-Teahan, Beata |
| Abstract: | This paper examines the influence of agri-food supply chains on the sustainability-related activities and decisions of Scottish farmers, as well as the treatment of sustainability issues by food processors and retailers themselves. It is based on 8 whole chain case studies covering some of Scotlandâs major agricultural products. The cases identify differing levels of understanding and activities related to sustainability, but widespread acknowledgement that sustainability involves the development of chains within which all parties can achieve acceptable profits. Indeed, collaborative supply chains, which seek improved economic performance, frequently assist environmental and social sustainability. The main drivers of sustainability are found to be the cost of key inputs, product markets where customers increasingly seek sustainability in products, the ethos and values of the businesses and people involved, and legislation and strategies of industry bodies. At the farm level, many farmers are seeking more sustainable production systems, particularly in economic and environmental terms, but there is a need for greater guidance and assistance. The paper presents a review of several key food supply sustainability issues, the methods and concepts used in compiling and analysing the cases, as well as the principal findings and implications for agri-food supply chain and policy development. |
| Keywords: | Sustainability, Food, Supply chain, Food Consumption/Nutrition/Food Safety, Q13, Q18, |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc11:108952&r=env |
| By: | Victor, Afari-Sefa; Gockowski, James; Agyeman, Nana Fredua; Dziwornu, Ambrose K. |
| Abstract: | Ghana is well endowed with premium bulk cocoa and is strategically positioned to capture significant market shares for the growing demand in specialty cocoa products on the world market. Consumersâ taste and preference for differentiated or âspecialtyâ cocoa based on environmental- and ethically certified cocoa products have been rising over the years. This study uses an ex-ante analytical approach to explore the potential for smallholder cocoa farmers in Ghana to develop niche markets for an environmentally and sustainably produced cocoa, namely; Rainforest Alliance Certified cocoa as an alternative to Ghanaian bulk cocoa. Using NPV, BCR and IRR economic decision criteria, the profitability or otherwise of introducing this rainforest alliance certified cocoa in Ghana is assessed. Rainforest Alliance certification requires farmers to shift from low or no shade Amazon production systems (i.e., <20 trees per ha) to medium shade Amazon production systems (70 shade trees distributed over a minimum of 12 species per ha) as well as other standards. In the base case scenario, results of the hypothetical high certified production system are compared with the current low input landrace cocoa and high input no shade cocoa systems. Under these conditions the certified production system and the low input landrace cocoa are essentially breakeven propositions while the high technology full sun system was moderately profitable. Sensitivity analysis of changes in FOB shares revealed that increasing the percentage of producer price from 70 to 85 percent of FOB dramatically increases the profitability of Rainforest Alliance certified cocoa at all varying FOB price levels when fertilizer price is subsidized. Profitability did however not change from the base model when fertilizer subsidies are removed by the government and the producer price increases to 85 percent of FOB. |
| Keywords: | Cocoa biodiversity, Ex-ante Cost-Benefit Analysis, Rainforest Alliance Certification, Differentiated cocoa production, Crop Production/Industries, |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaae10:97085&r=env |
| By: | Beyene, Abebe Damte |
| Abstract: | Replaced with revised version of paper 12/14/10. |
| Keywords: | property rights, institutions, fuel wood, rural, Ethiopia., Resource /Energy Economics and Policy, |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaae10:96171&r=env |
| By: | Holland, Stephen (University of North Carolina at Greensboro, Department of Economics) |
| Abstract: | “Peak oil” refers to the future decline in world production of crude oil and to the accompanying potentially calamitous effects. The peak oil literature typically rejects economic analysis. This chapter, following Holland (2008), argues that economic analysis is indeed appropriate for analyzing oil scarcity since standard economic models can replicate the observed peaks in oil production. Moreover, the emphasis on peak oil is misplaced since peaking is not a good indicator of scarcity, peak oil techniques are overly simplistic, the catastrophes predicted by the peak oil literature are unlikely, and the literature does not contribute to correcting identified market failures. Efficiency of oil markets could be improved by instead focusing on remedying market failures such as excessive private discount rates, environmental externalities, market power, insufficient innovation incentives, incomplete futures markets, and insecure property rights. |
| Keywords: | Depletable resources; Hotelling; peak oil |
| JEL: | Q30 Q40 |
| Date: | 2011–08–02 |
| URL: | http://d.repec.org/n?u=RePEc:ris:uncgec:2011_013&r=env |
| By: | Brooks, Laura |
| Abstract: | A deterministic model for the economic impact of African Horse Sickness (AHS) on the equine breeding industry was developed for South Africa. It was applied to the case of the 2007/2008 outbreak of AHS in the Eastern Cape as a pilot application of the model, using data from breeders in the province. It was concluded that the deterministic modelâs extension to include other areas of equine livelihoods could be effective in exposing the need for further research into the control and treatment of AHS in South Africa. |
| Keywords: | African horse sickness, economic impact, South Africa, Environmental Economics and Policy, |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ruhp10:107456&r=env |
| By: | Okello, Julius Juma; Ndirangu, Lydia K. |
| Abstract: | The need to provide agricultural information to farmers has led to emergence of numerous ICTbased MIS projects in developing country. These projects aim at promoting commercialization of smallholder agriculture and subsequently their welfare. This study examines the how the environment in which such ICT-based MIS affect their performance. It specifically uses the DrumNet project, an ICT-based MIS, to assess how the socio-economic, physical, political and physical environment in the project areas affected its performance. The study finds that those transaction-related problems, especially strategic default, deriving from these environmental factors greatly undermined the performance of DrumNet forcing it to relocate severally. It discusses policy implications of these findings. |
| Keywords: | ICT-based MIS projects, the DrumNet model, operational environment, performance, Kenya, Research Methods/ Statistical Methods, |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaae10:96193&r=env |
| By: | Taruvinga, A.; Mushunje, Abbyssinia |
| Abstract: | Increased droughts in southern Africa have noticed some appreciation of the role that partial wetland cultivation can play to address household food security. This has also witnessed some indication of possible relaxation of wetland cultivation restrictive policies in Zimbabwe. However, the general perceptions of society towards wetland cultivation remain unclear and critically important for policy crafting before blanket recommendations are made. Using a Binary Logistic Regression Model seven predictor independent variables were regressed against a binary dependent variable of wetland cultivation status of households with the implicit goal of estimating socio-economic factors capable of influencing households` participation in wetland cultivation. Results revealed that from the seven predictor variables, six variables had a significant influence, while one variable was not significant. The implied message centres on careful articulation of such a policy given the fact that, the dominant age group (young and educated household heads) had a negative attitude towards wetland cultivation, a crucial factor that may risk its rejection if put under a referendum. Intuitively results conjecture a bleak future for partial wetland cultivation as a possible land use because the expected future generation (current young and educated household heads) currently shares a negative attitude towards partial wetland cultivation. |
| Keywords: | Wetland Cultivation, Environmental Policy, Logistic Regression, Crop Production/Industries, |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaae10:95967&r=env |
| By: | Gill, Tania; Punt, Cecilia |
| Abstract: | In South Africa, a water scarce country, conflict between water users is mounting, while there are few remaining bulk water augmentation options. Water demand management is thus increasingly taking centre stage in water management debates. Water pricing is regarded as an important component of managing the demand for water resources. This article traces the efficacy of increasing irrigation water tariffs to save water and the impact thereof on the national economy and the Western Cape economy using the Computable General Equilibrium (CGE) model and Social Accounting Matrix (SAM) constructed by Hassan et al (2008). Two scenarios are investigated in which the water tariff is increased by 50 percent from a base of 2c/m³. In the first scenario water demand is fixed in agriculture; thus, water needs to be fully utilized in agriculture. In the second scenario it is assumed that all water does not have to be utilized. The study finds that, for both scenarios, increasing water tariffs by 50% raises the risk profile of agriculture, threatens food security, decreases national welfare, increases imports of staple foods, increases the prices of staple foods, decreases household welfare and decreases employment in agriculture. These adverse effects are more severe in the second scenario than in the first scenario. The introduction of irrigation water pricing shocks should thus be approached with due caution and alternative demand management approaches should be investigated. |
| Keywords: | Resource /Energy Economics and Policy, |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaae10:96425&r=env |
| By: | Andrew D. Krueger (University of Delaware); George R. Parsons (Department of Economics, University of Delaware); Jeremy Firestone (University of Delaware) |
| Abstract: | Several offshore wind power projects are under consideration in the United States. A concern with any wind power project is the visual disamenity it may create. Using a stated preference choice model, we estimated the external costs to residents of the State of Delaware for offshore wind turbines located at different distances from the coast. The annual costs to inland residents was $19, $9, $1, and $0 (2006$) for turbines located at 1, 3.6, 6, and 9 miles offshore. The cost to residents living on the ocean was $80, $69, $35, and $27 for the same increments. |
| Keywords: | Windfarms, View Disamenity, Valuation |
| JEL: | Q51 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:dlw:wpaper:11-04.&r=env |