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on Environmental Economics |
| By: | Kiyono, Kazuharu; Ishikawa, Jota |
| Abstract: | This paper studies environmental management policy when two fossil-fuel-consuming countries non-cooperatively regulate greenhouse- gas emissions through emission taxes or quotas. The presence of carbon leakage caused by fuel-price changes a.ects the tax-quota equivalence. We explore each country.s incentive to choose an environment regula- tion instrument within a framework of a two-stage policy choice game and .nd subgame-perfect Nash equilibria. This sheds a new light on the question of why adopted policy instruments could be di.erent among countries. We also analyze the welfare e.ect of creating an interna- tional market for emission permits. International trade in emission permits may not bene.t the fuel-consuming countries. |
| Keywords: | global warming, carbon leakage, emission tax, emission quota, tax-quota equivalence, emission trading |
| JEL: | F18 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:hit:ccesdp:45&r=env |
| By: | Brännlund, Runar (Centre for Environmental and Resource Economics, Department of Economics, Umeå University, Sweden); Lundgren, Tommy (Centre of Environmental and Resource Economics, Umeå School of Business, Umeå University, Sweden); Marklund, Per-Olov (Centre for Environmental and Resource Economics, Centre for Regional Science, Umeå University, Sweden) |
| Abstract: | This study’s ultimate goal is to analyze environmental performance (EP) at firm level and the effectiveness of environmental policy along with other possible determinants. Especially, the empirical analysis aims at exploring the relationship between the actual EP of firms in terms of CO2 emissions per output unit, and one aspect of Swedish environmental policy, the CO2- tax. Since Sweden was the first country to introduce a specific CO2-tax in 1991 we believe that the Swedish case may serve as an appropriate “test bench” for analyzing EP and the effectiveness of environmental policy in general. To achieve our objective we use a panel data of Swedish manufacturing spanning over the period 1990-2004. The results suggest that EP has improved in all sectors of manufacturing. We also see that production increases while emissions decrease in many sectors, indicating a decoupling of economic growth and environmental degradation. Furthermore, firms’ EP responds to changes in the CO2-tax and fossil fuel price, but is more sensitive to the tax, indicating different EP behavior among firms depending on why the cost of fossil fuels change. Several sectors also display a positive tendency over time in EP, which may suggest that EP is to some extent stimulated by an overall boost in environmental awareness in society and firms. |
| Keywords: | CO2 emissions; CO2-tax; environmental performance |
| Date: | 2011–08–25 |
| URL: | http://d.repec.org/n?u=RePEc:hhb:sicgwp:2011_001&r=env |
| By: | Christoph Böhringer; Jared C. Carbone; Thomas F. Rutherford |
| Abstract: | In a world where the prospects of a global agreement to control greenhouse gas emissions are bleak, the idea of using trade policy as an implicit regulation of foreign emission sources has gained many supporters in countries contemplating unilateral climate policies. Embodied carbon tariffs tax the direct and indirect carbon emissions embodied in imported goods. The appeal seems obvious: as OECD countries are, on average, large net importers of embodied emissions from non-OECD countries, carbon tariffs could substantially extend the reach of OECD climate policies. We investigate this claim by simulating the effects of embodied carbon tariffs with a computable general equilibrium model of global trade and energy use. We find that embodied carbon tariffs do effectively reduce carbon leakage. However, the scope for improvements in the global cost-effectiveness of unilateral climate policy is limited. The main welfare effect of the tariffs is to shift the burden of OECD climate policy to the developing world. |
| JEL: | F18 H23 Q54 Q56 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17376&r=env |
| By: | Hampf, Benjamin |
| Abstract: | In this paper we present a new approach to evaluate the environmental efficiency of decision making units. We propose a model that describes a two-stage process consisting of a production and an end-of-pipe abatement stage with the environmental efficiency being determined by the efficiency of both stages. Taking the dependencies between the two stages into account, we show how nonparametric methods can be used to measure environmental efficiency and to decompose it into production and abatement efficiency. For an empirical illustration we apply our model to an analysis of U.S. power plants. |
| Keywords: | nonparametric efficiency analysis, pollution abatement, network DEA, materials balance condition, fosil-fueled power plants |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:dar:ddpeco:53901&r=env |
| By: | Ronald Steenblik; Massimo Geloso Grosso |
| Abstract: | The deployment of technologies for the mitigation of greenhouse-gases (GHGs) is dependent on a wide range of services, including those that are imported. Business services, telecommunications services, and construction and related engineering services figure prominently. This paper aims to develop a better understanding of the specific roles that these services play in helping to mitigate GHG emissions, and to identify the major suppliers and consumers. It presents examples and mini-case studies that explore how particular services complement the deployment of GHG mitigating technologies. With respect to the four modes of services trade, instances of mode 1 (cross-border trade) trade taking place over the Internet appear to be more commonplace, often complementing movement of personnel. Examples of mode 2 trade (consumption abroad) typically involve training of a client’s personnel. Mode 3 trade (commercial presence) is critical for the provision of services that entail construction and operation of production facilities. The temporary movement of natural persons (mode 4) is also common, especially where expert judgement or supervision is required for a short period of time. |
| Keywords: | trade policy, environmental goods, environmental services, climate change, Business service, trade and environment |
| JEL: | F18 L84 L86 N50 Q42 Q56 |
| Date: | 2011–05–26 |
| URL: | http://d.repec.org/n?u=RePEc:oec:traaaa:2011/3-en&r=env |
| By: | Drabo, Alassane (CERDI, University of Auvergne); Mbaye, Linguère Mously (CERDI, University of Auvergne) |
| Abstract: | The aim of this paper is to assess the relationship between natural disasters caused by climate change and migration by interesting in the migration rates and the education level in developing countries. Many studies such as the Stern review (2007) or the Intergovernmental Panel on Climate Change (IPCC, 2007) predict an intensification of climate change for the following years. Thus, climate change has taken an essential place in the world governance. The relationship between climate change, natural disasters and migration is crucial because the management of supplementary migratory flows due to environmental degradation make the migration issues coming from developing countries more complicated for developed countries. We investigate this relationship by using panel data from developing countries in order to see the effect of the natural disasters on migration rates and according to the educational level. Estimations are made with country fixed effects estimator through an accurate econometric model. The results confirm previous studies, namely natural disasters are positively associated with emigration rates. But beyond this result, the main contribution of this paper is to show that natural disasters due to climate change exacerbate brain drain in developing countries by involving the migration of high skilled people when countries are the most vulnerable and need an important support from the skilled workers to deal with natural disasters damages. The paper also shows that this effect is different according to the geographical position. |
| Keywords: | climate change, natural disasters, migration |
| JEL: | O15 Q54 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5927&r=env |
| By: | Gernot Pehnelt (GlobEcon); Christoph Vietze (Friedrich-Schiller-University Jena, Germany) |
| Abstract: | On 05 December 2010, the Renewable Energy Directive (RED) came into force in the EU. Member States are still working to fully transpose the Directive into national law and establish a framework for achieving their legally binding greenhouse gas (GHG) emission reductions. However, governments got off to a slow start as debate continues on the validity of the directives foundations including the default values used to measure the sustainability of biofuels. Only sustainable biofuels can be counted towards Member State targets. This, as a matter of principle, makes sense with respect to the very aim of renewable energy policies. On the other hand, the vague and distortive formulation and values regarding what is to be classified as "sustainable" have negatively impacted the perception of the underlying scientific base and methodologies as well as the reliability in the European biofuels sector. This uncertainty and the ongoing controversial debates are affecting investment and progress in the biofuel sector not just in Europe but all over the world. Producers of soybeans in the US, sugarcane in Brazil and palm oil in Malaysia and Indonesia as well as European importers and end-users of these products have all been sharply critical of the default values, citing significant variations in calculations that undermine the credibility of the values contained in the Directive. Given the remarkable difference between the calculation of carbon reduction performance of palm oil based biofuel by the EU and a range of scientific studies which we documented in an earlier paper (Pehnelt and Vietze 2009), we are re-calculating GHG emissions saving potentials for palm oil biodiesel in order to further assess the carbon footprint of palm oil to overcome the lack of transparency in existing publications on the issue and EU regulations governing the biofuel feed-stocks. The aim of this paper is to calculate realistic and transparent scenario based CO2-emission values for the GHG emission savings of palm oil fuel compared with fossil fuel. Using the calculation scheme proposed by the Renewable Energy Directive (RED), we derive a more realistic overall default value for palm oil diesel by using current input and output data of biofuel production (e.g. in South-East Asia) and documenting every single step in detail. We calculate different scenarios in which reliable data on the production conditions (and the regarding emission values during the production chain) of palm oil diesel are used. Our conservative calculations based on the Joint Research Centre's (JEC 2011) background data and current publications on palm oil production result in GHG emissions saving potentials of palm oil based biodiesel fairly above the 35% threshold. We cannot reproduce the EU's GHG saving values for palm oil. Rather, our results confirm the higher values obtained by other studies mentioned in our last paper (Pehnelt and Vietze 2009) and elsewhere in this study. Our results indicate default values for the GHG emission savings potential of palm oil biodiesel not only way beyond the 19 percent default value published in RED but also beyond the 35 percent threshold. Our findings conclude that the more accurate default value for palm oil feedstock for electricity generation to be 52%, and for transportation biodiesel between 38.5% and 41%, depending on the fossil fuel comparator. Our results confirm the findings by other studies and challenge the official default values published in RED. As indicated by lawsuits filed by environmental NGOs against the Commission for greater transparency related to the assessment of biofuels, the process has been severely lacking in full disclosure of metrics used to achieve the values contained in the Renewable Energy Directive. As a result, the reliability of the Directive to support the EU's low-carbon ambitions is being undermined, exposing the EU and Commission to charges of trade discrimination and limiting the ability of Member States to achieve their legally binding GHG emission reductions. This analysis demonstrates that a full review of the values contained in the Directive should be undertaken and the values revised to ensure their accuracy, and raises questions as to the method that the values were originally established. Were outside parties consulted, including the industries directly affected by the assessments in the Directive? Were these values peer reviewed? In light of grievances expressed by producers throughout the world, including US soybean growers, Brazilian sugarcane farmers, and Malaysian and Indonesian palm growers, ensuring the Directive does not discriminate against imports is critical to the long-term efforts in the EU to reduce GHG emissions. |
| Keywords: | Biofuel, Palm Oil, Biodiesel, RED, Renewable Energy Directive, Default Values, GHG-emissions |
| JEL: | F14 F18 O13 Q01 Q15 Q27 Q56 Q57 |
| Date: | 2011–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2011-037&r=env |
| By: | Farber, Daniel A. |
| Abstract: | Environmental law focuses on regulating the production of energy and goods. Less attention has been given to reducing the environmental footprint of consumption. This Article brings together several strands of research, including psychological and economic research on subjective wellbeing; research on energy efficiency; writings by urban planners on sustainable communities; and recent work on individual behavior and sustainability. The conclusion, in a nutshell, is that changes in consumption of goods and energy, assisted by improvements in urban design and transportation infrastructure, can significantly reduce energy use and environmental harm. A variety of legal tools are available to promote these changes. Remarkably, many of the steps needed for sustainability can actually improve quality of life, adding to individual satisfaction. Thus, sustainability for society and the pursuit of individual happiness need not be at odds. |
| Keywords: | Administrative Law; Economics; Energy and Utilities Law; Environmental Law; Land Use Planning; Law and Economics; Natural Resources Law; Oil, Gas, and Mineral Law; Public Law and Legal Theory; Water Law, Environmental Law |
| Date: | 2011–08–30 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:oplwec:2206014&r=env |
| By: | Mikhail Golosov; John Hassler; Per Krusell; Aleh Tsyvinski |
| Abstract: | We analyze a dynamic stochastic general-equilibrium (DSGE) model with an externality through climate change from using fossil energy. A central result of our paper is an analytical derivation of a simple formula for the marginal externality damage of emissions. This formula, which holds under quite plausible assumptions, reveals that the damage is proportional to current GDP, with the proportion depending only on three factors: (i) discounting, (ii) the expected damage elasticity (how many percent of the output flow is lost from an extra unit of carbon in the atmosphere), and (iii) the structure of carbon depreciation in the atmosphere. Very importantly, future values of output, consumption, and the atmospheric CO2 concentration, as well as the paths of technology and population, and so on, all disappear from the formula. The optimal tax, using a standard Pigou argument, is then equal to this marginal externality. The simplicity of the formula allows the optimal tax to be easily parameterized and computed. Based on parameter estimates that rely on updated natural-science studies, we find that the optimal tax should be a bit higher than the median, or most well-known, estimates in the literature. We also show how the optimal taxes depend on the expectations and the possible resolution of the uncertainty regarding future damages. Finally, we compute the optimal and market paths for the use of energy and the corresponding climate change. |
| JEL: | E13 E17 E6 H23 Q28 Q4 Q5 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17348&r=env |
| By: | Viard, Brian; Fu, Shihe |
| Abstract: | We evaluate the environmental and economic effects of Beijing’s driving restrictions. Based on daily data from multiple monitoring stations, air pollution falls 19% during every-other-day and 8% during one-day-per-week restrictions. Based on hourly viewership data, the number of television viewers during the restrictions increases 1.7 to 2.3% for workers with discretionary work time but is unaffected for workers without, consistent with the restrictions’ higher per-day commute costs reducing daily labor. Causal effects are identified from both time-series and spatial variation in air quality and intra-day variation in viewership. We provide possible reasons for the policy’s success, including evidence of high compliance based on parking garage entrance records. Our results contrast with previous findings of no pollution reductions from driving restrictions and provide new evidence on commute costs and labor supply. |
| Keywords: | Driving restrictions; externalities; environmental economics; pollution |
| JEL: | R40 J22 H23 |
| Date: | 2011–08–25 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:33009&r=env |
| By: | Wolfgang Habla; Ralph Winkler |
| Abstract: | We analyze non-cooperative international climate policy in a setting of political competition by national interest groups. In the first stage, countries decide whether to set up an international emission permits market, which only forms if it is supported by all countries. In the second stage, countries non-cooperatively decide on the number of tradable or non-tradable emission allowances, depending on the type of regime. In both stages, special interest groups try to sway the government in their favor. We find that (i) both the choice of regime and the level of aggregate emissions only depend on the aggregate levels of organized stakes in all countries and not on their distribution among individual interest groups, and (ii) an increase in lobbying influence by a particular lobby group may backfire by inducing a change towards the less preferred regime. |
| Keywords: | non-cooperative climate policy; political economy; emissions trading; organization |
| JEL: | D72 H23 H41 Q58 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:ube:dpvwib:dp1106&r=env |
| By: | Clive George; Ysé Serret |
| Abstract: | This report provides an update on recent developments in the field of Regional Trade Agreements and the environment. Issues arising in the implementation of RTAs with environmental considerations are examined as well as experience in assessing their environmental impacts. It is the fourth update prepared under the aegis of the Joint Working Party on Trade and Environment. The report covers developments over the period from late 2009 to December 2010 and is based on publicly available information. |
| Keywords: | trade policy, regional trade agreements, trade and environment, free trade agreements, environmental provisions |
| JEL: | F13 F18 N50 Q56 |
| Date: | 2011–05–10 |
| URL: | http://d.repec.org/n?u=RePEc:oec:traaaa:2011/1-en&r=env |
| By: | Clive George |
| Abstract: | How are environmental provisions incorporated in regional trade agreements (RTAs)? What are the environmental impacts of RTAs? How can RTAs contribute to green growth? These questions were discussed at the fourth OECD Workshop on Regional Trade Agreements and the Environment, held by the OECD Joint Working Party on Trade and Environment (JWPTE) in Paris on 1-2 June 2010. Participants included JWPTE delegates and other representatives from OECD members and other countries, and representatives from intergovernmental organisations, non-governmental organisations and academia. Participants discussed characteristics of RTAs, free trade agreements and other trade arrangements, including co-operation activities and capacity building, public participation, consultation mechanisms and dispute settlement. The workshop also reviewed experiences in assessing the environmental impacts of such agreements, looking at ex ante as well as ex post evaluations. This document presents the main outcomes of the workshop. |
| Keywords: | trade policy, regional trade agreements, trade and environment, free trade agreements, environmental provisions |
| JEL: | F13 F18 N50 Q56 |
| Date: | 2011–05–10 |
| URL: | http://d.repec.org/n?u=RePEc:oec:traaaa:2011/2-en&r=env |
| By: | Charles Figuières; Estelle Midler |
| Abstract: | The international community recently agreed on a mechanism called REDD+ to reduce deforestation in tropical countries. However the mechanism, by its very nature, has no reason to induce a Pareto optimal reduction of deforestation. The aim of this article is to propose an alternative class of mechanisms for negative externalities that implements Pareto optimal outcomes as Nash Subgame Perfect Equilibria, and that satisfies some fairness properties, in particular two original axioms of environmental responsibility. Outcomes are individually rational and the scheme does take into account environmental responsibility in the sense of our two axioms. However, envy freeness, even in a weak form adapted to the deforestation problem, turns out to be hard to achieve without dropping the other properties. |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:lam:wpaper:17-11&r=env |
| By: | S. Mahendra Dev (Indira Gandhi Institute of Development Research) |
| Abstract: | Climate change is a major challenge for agriculture, food security and rural livelihoods for billions of people including the poor in the Asia-Pacific region. Agriculture is the sector most vulnerable to climate change due to its high dependence on climate and weather and because people involved in agriculture tend to be poorer compared with urban residents. More than 60 per cent of the population is directly or indirectly relying on agriculture as a source of livelihood in this region. Agriculture is part of the problem and part of the solution. Asian agriculture sector is already facing many problems relating to sustainability. To those already daunting challenges, climate change adds further pressure on agriculture adversely affecting the poor. The climate change is already making adversely impact on the lives of the population particularly the poor. It is already evident in a number of ways. Consistent warming trends and more frequent and intense extreme weather events such as droughts, cyclones, floods, and hailstorms have been observed across Asia and the Pacific in recent decades. The objective of this paper is to identify climate change related threats and vulnerabilities associated with agriculture as a sector and agriculture as people's livelihoods (exposure, sensitivity, adaptive capacity). The paper analyses the connections between the nature of human action as drivers of threats as well as opportunities for sustainable agriculture and better human development outcomes. Broadly, it examines the impact of climate change on rural livelihoods, agriculture, food security. It discusses the options for adaptation and mitigation and requirements for implementation at local, national and international level of these measures. |
| Keywords: | climate change, adaptation, mitigation, Asia-Pacific region, agriculture |
| JEL: | Q10 Q54 R11 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:ind:igiwpp:2011-014&r=env |
| By: | Lopez, Ramón; Palacios, Amparo |
| Abstract: | This paper systematically examines the role of fiscal policy, trade and energy taxes on environmental quality in Europe using disaggregated data for 12 European countries over the 1995-2008 period. It uses a methodology that obtains estimates mostly free of time-varying omitted variable biases. Controlling for the scale effect, our estimations show that fiscal policies and energy taxes are effective in reducing the concentration of certain pollutants through different mechanisms. We also find that trade has a direct effect on production pollutants, which is most likely due to an output composition effect, but not on consumption pollutants. Increasing the share of fiscal spending and shifting the emphasis of fiscal spending towards public goods and against non-social subsidies has a surprising and unintended beneficial effect on the concentrations of ozone, perhaps the most difficult to control pollutant. Finally, energy taxes appear to have an important effect in reducing nitrogen dioxide pollution but it has no effect on ozone and sulfur dioxide. |
| Keywords: | government spending; pollutions; public goods; taxes |
| JEL: | H40 H50 O13 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8551&r=env |
| By: | Tomoki Fujii (School of Economics, Singapore Management University); Ryuichiro Ishikawa (Graduate School of Systems and Information Engineering, University of Tsukuba) |
| Abstract: | We consider a simple two-period model with irreversible investment with strategic interactions. In this setup, we try to extend the concept of the quasi-option value (QOV) by Arrow and Fisher (1974), Henry (1974), Fisher and Hanemann (1987) and Hanemann (1989) to a game-theoretic situation. In doing so, we demostrate some conceptual difficulties with the QOV, and stress the potential importance of information-induced inefficiency. We also show that this inefficiency can be remedied by incorporating sophisticated control of information flow. Our model is potentially applicable to various global environmental problems. |
| Keywords: | Biodiversity, Irreversibility, Quasi-option value, Uncertainty, Value of Information |
| JEL: | C72 H43 Q50 |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:siu:wpaper:04-2011&r=env |
| By: | Christopher Jeffords (University of Connecticut) |
| Abstract: | This paper provides a detailed keyword analysis of the 142 out of 198 national constitutions that include at least one reference to the environment as of 2010. Out of these 142 constitutions, 125 contain provisions that are explicitly related to environmental human rights, and ten include a direct human right to water. Focusing mostly on the language of the provisions and the age of the constitutions (not the age of the provision itself), the analysis provides insight into the extent to which countries are taking environmental human rights seriously. The findings note that constitutions that reference the environment are, on average, generally younger in age than those that do not. This is also the case for developing versus developed countries, and Non-OECD (Organization for Economic Cooperation and Development) versus OECD member countries. Constitutions that have a direct human right to water are, on average, even younger. The paper also develops a simple index of the legal strength of constitutional environmental human rights provisions and offers the data as an alternative, positive (versus subjective) specification to a similar set of data compiled by the Toronto Initiative for Economic and Social Rights (TIESR). |
| Keywords: | Constitutions, Environmental Human Rights, Human Right to Water |
| JEL: | K00 K32 Q50 Q56 Q58 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:uct:ecriwp:16&r=env |
| By: | Natalia Magnani (University of Trento, Dipartimento di Sociologia e Ricerca Sociale); Andrea Vaona (Department of Economics (University of Verona)) |
| Abstract: | In a multivariate setting, we document that renewable energy generation has a positive impact on economic growth at the regional level in Italy. We do so by adopting panel data unit-root and cointegration tests as well as Granger non-causality tests relying on the system GMM estimator. Our results are interpreted in three ways. Renewable energy generation alleviates balance-of-payments constraints and reduces the exposure of a regional economy to the volatility of the price of fossil fuels and to negative environmental and health externalities deriving from non-renewable energy generation. Therefore, our evidence supports policies promoting renewable energy generation. |
| Keywords: | renewable energy generation, economic growth, panel unit root and cointegration tests, Granger causality, Italy, panel error correction model, regions. |
| JEL: | O13 O18 R11 N70 Q42 Q43 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:ver:wpaper:12/2011&r=env |
| By: | Jean-Marc Burniaux; Jean Chateau; Jehan Sauvage |
| Abstract: | Quoting a joint analysis undertaken by the OECD and the IEA, G-20 leaders committed in September 2009 to “rationalize and phase out over the medium term inefficient fossil-fuel subsidies that encourage wasteful consumption.” This report draws on previous OECD work to assess the impact on international trade of phasing out fossil-fuel consumption subsidies provided mainly by developing and emerging economies. The analysis employed the OECD’s ENV-Linkages General-Equilibrium model and used the IEA’s estimates of consumer subsidies, which measure the gap existing between the domestic prices of fossil fuels and an international reference benchmark. It shows that a co-ordinated multilateral removal of fossil-fuel consumption subsidies over the 2013-2020 period would increase global trade volumes by a very small amount (0.1%) by 2020. While seemingly negligible, this increase hides the large disparities that are observed across countries (or regions) and products. Under the central scenario, which assumes a multilateral subsidy removal over the 2013-2020 period, trade in natural gas would be most affected, with a 6% decrease by 2020. A reduction in the volume of both imports and exports from oil-exporting countries would be partly compensated by an expansion of trade flows (both imports and exports) involving OECD countries. This reallocation of trade flows would be most prevalent in products of energy-intensive industries. Looking beyond 2020, the contribution of oil-exporting countries to total world trade volumes would continue to be lower in 2050 than under the reference scenario. |
| Keywords: | climate change, trade and environment, greenhouse gas emissions, general equilibrium models, fossil-fuel subsidies |
| JEL: | F17 F18 H23 O41 Q43 Q56 |
| Date: | 2011–08–26 |
| URL: | http://d.repec.org/n?u=RePEc:oec:traaaa:2011/5-en&r=env |
| By: | Nilsson, Jonas (Umeå School of Business at Umeå University, Umeå, Sweden); Jansson , Johan (Umeå School of Business at Umeå University, Umeå, Sweden); Isberg, Sofia (Umeå School of Business at Umeå University, Umeå, Sweden); Nordvall, Anna-Carin (Umeå School of Business at Umeå University, Umeå, Sweden) |
| Abstract: | Although much research has been published on green/ethical consumer behaviour, the question of how consumers evaluate pro-socially positioned products in the post-purchase stage is still virtually unexplored. This is troubling given the significance of post-purchase evaluations within general marketing theory. To address this gap in the literature, this study examines how a set of technical and functional quality attributes contribute to customer satisfaction in a socially responsible investment (SRI) setting. The results of the study show that perceived financial quality of the SRI mutual fund is the most important predictor of customer satisfaction. However, perceived social, ethical, and environmental (SEE) quality is also positively related to satisfaction for the SRI mutual fund. Based on these results, it is argued that although SEE quality is important to customers, marketers of pro-socially profiled products should primarily focus on conventional quality attributes, as a good SEE record unlikely to generate customer satisfaction alone. |
| Keywords: | Customer satisfaction; ethics; perceived quality; socially responsible investment; mutual funds |
| Date: | 2011–08–25 |
| URL: | http://d.repec.org/n?u=RePEc:hhb:sicgwp:2011_002&r=env |
| By: | Coxhead, Ian (University of WI); Chan, Nguyen Van (National Economics University, Hanoi) |
| Abstract: | We examine the effects of a proposed environmental tax in a small open developing economy, using an applied general equilibrium model linked to a household survey database. The burden of the tax, applied primarily to fossil fuels, is passed forward by non-traded industries and backward by industries selling into the world market. It causes efficiency and competitiveness losses equivalent to those of a real exchange rate appreciation, and since export industries are in general highly labor-intensive, is regressive and thus poverty-increasing. The budget-neutral use of increased tax revenues to raise spending on anti-poverty programs can offset most of the losses of poor households, but does not create new jobs. The extent of overall losses and their distribution is sensitive to some parameters, such as labor supply response, about which little is currently known in a developing-country context. |
| JEL: | D58 H23 O53 Q52 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:wisagr:561&r=env |
| By: | Bikramjit Das; Abhimanyu Mitra; Sidney Resnick |
| Abstract: | Multivariate regular variation plays a role assessing tail risk in diverse applications such as finance, telecommunications, insurance and environmental science. The classical theory, being based on an asymptotic model, sometimes leads to inaccurate and useless estimates of probabilities of joint tail regions. This problem can be partly ameliorated by using hidden regular variation [Resnick, 2002, Mitra and Resnick, 2010]. We offer a more flexible definition of hidden regular variation that provides improved risk estimates for a larger class of risk tail regions. |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1108.5560&r=env |
| By: | Bjarne Steffen; Christoph Weber (Chair for Management Sciences and Energy Economics, University of Duisburg-Essen) |
| Abstract: | Power systems with high shares of wind and solar power have to balance their intermittent nature. Pumpedâ€hydro storage plants can provide the required flexibility, while thermal backup plants offer an alternative. This paper proposes a model based on peakâ€loadâ€pricing theory to describe the efficient technology portfolio. Drawing on a load duration curve, we derive the efficient storage capacity and discuss its dependence on cost parameters. It is shown that renewable generation affects the efficient storage capacity by changing the shape of the residual load duration curve, while limited time periods with renewable generation in excess of load do not necessarily affect the level of storage. A case study for Germany applies the model and highlights the impact of CO2 prices on storage efficiency. |
| Keywords: | electricity storage, peakâ€loadâ€pricing, renewable energy |
| JEL: | C61 D24 L94 Q41 Q42 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:dui:wpaper:1104&r=env |
| By: | Giuseppe Piroli; Pavel Ciaian; d'Artis Kancs |
| Abstract: | The present paper studies the land use change impacts of biofuels. We test the theoretical hypothesis, which say that biofuels cause changes in land use both directly and indirectly, by applying time-series analytical mechanisms to five major traded agricultural commodities, the cultivated area of agricultural land, and the crude oil price. Our data consists of yearly observations extending from 1950 to 2007 for the US. The empirical findings confirm that prices for crude oil and cultivated agricultural land are interdependent: an increase in oil price by 1 dollar/barrel increases land use between 45 and 56 thousand hectares. |
| Keywords: | Near-VAR, energy, bioenergy, prices, land use, biofuel support policies. |
| JEL: | C14 C22 C51 D58 Q11 Q13 Q42 |
| Date: | 2011–08–11 |
| URL: | http://d.repec.org/n?u=RePEc:eei:rpaper:eeri_rp_2011_11&r=env |