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on Environmental Economics |
| By: | ISHIKAWA Jota; OKUBO Toshihiro |
| Abstract: | This paper studies greenhouse gas (GHG) emission controls in the presence of international carbon leakage through international firm relocation. In a trade and geography framework with two countries ("North" and "South"), only North sets a target for GHG emissions. We compare the consequences of emission quotas, emission taxes, and emission standards under trade liberalization for the location of pollution-intensive and less pollution-intensive sectors and the degree of carbon leakage. With low trade costs, further trade liberalization increases global emissions by facilitating carbon leakage. Regulation by quotas leads to spatial sorting with less carbon leakage and less global emissions than regulation by taxes and standards. |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:13045&r=env |
| By: | Tilak K. Doshi (Asian Development Bank Institute (ADBI)); Neil Sebastian D’Souza |
| Abstract: | Singapore is the most industrialized and urbanized country in Southeast Asia and is totally dependent on oil and natural gas imports to satisfy its energy needs. Its national energy policy framework seeks to find a balance between maintaining Singapore’s competitiveness, improving energy security, and enhancing environmental sustainability. In this paper, we discuss where Singapore stands with regard to its energy consumption and CO2 emissions, its energy policies to date, and those that will be implemented in the near future. We use a Singapore Energy- Economy model based on the Long Range Energy Alternatives Planning (LEAP) framework to assess the impact of energy efficiency and conservation policies on Singapore’s energy intensity and CO2 emissions through to 2050. We also discuss the challenges that Singapore will face on account of climate change policies affecting key sectors of its economy. We find that Singapore has achieved much progress over the past four decades. Prudent energy policies and a changing economic structure have led to more efficient use of energy as evidenced by Singapore’s declining energy intensity. There is considerable uncertainty as to the evolution of a global agreement on CO2 emissions reductions and the exact nature of the commitments that countries will be held to. Given Singapore’s status as a preeminent shipping center and global oil refining center, CO2 emissions policies that will affect these industries will impact Singapore’s economy if issues of “carbon leakage†are not adequately addressed. |
| Keywords: | Singapore, national energy policy, energy demand, Energy Consumption, vironment, emission, climate change policy |
| JEL: | O53 Q38 Q48 |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:eab:macroe:23426&r=env |
| By: | Frank Jotzo |
| Abstract: | China is considering a national emissions trading scheme, to follow several pilot schemes, as part of the suite of policies to reduce the growth of greenhouse gas emissions. A carbon tax or tax-like scheme could be an alternative. However there are special challenges in a fast-growing economy where the energy sector is heavily regulated. This paper analyses policy design options based on principles, China’s circumstances, and Australian and European experiences. The main findings are the following. (1) Features such as variable permit supple, price floor/ceiling or a fixed permit price are desirable to provide a stable price signal, especially in China’s case. A carbon tax can be a viable alternative or complement to emissions trading. (2) Any free permits or other assistance to industry should be carefully designed to preserve incentives to cut emissions, limited so that governments can use carbon revenue to support households or pay for other policy measures, and regularly reviewed to avoid lock-in of unnecessary payments. (3) Broad coverage of emissions pricing is necessary for effectiveness, including in electricity supply and demand. Carbon pricing can be partly effective in the electricity sector ahead of comprehensive energy sector reform, ultimately however market-based energy pricing is needed. (4) Carbon pricing should be seen in the broader context of economic policy reform. It offers opportunities to support broader goals of fiscal, energy and environmental policy. |
| Keywords: | Instrument China, emissions trading, carbon tax |
| JEL: | Q48 Q52 Q54 Q56 Q58 O12 |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:een:ccepwp:1303&r=env |
| By: | Michele Battisti (Department of Law, Politics and Society, University of Palermo); Michael S. Delgado (Department of Agricultural Economics, Purdue University); Christopher F. Parmeter (Department of Economics, University of Miami) |
| Abstract: | Economists and environmental policymakers have recently begun advocating a bottom-up approach to climate change mitigation, focusing on reduction targets for groups of nations, rather than large scale global policies. We advance this discussion by taking a quantitative perspective, focusing on econometric identification of groups of countries that have statistically similar distributions of carbon emissions using a broad range of finite mixture models. Nearly all of our results yield a consistent pattern: after 1980, there are two distinct emissions distributions, and that these distributions continue to evolve over time. We provide a rigorous analysis of these distributional differences along several important dimensions: polarization, mobility, and volatility. We discuss how this robust quantitative evidence may aid policymakers in forging a heterogeneous carbon abatement policy. |
| Keywords: | Carbon emissions; Emissions groups; Heterogeneity; Abatement policy; Finite mixture models |
| JEL: | C30 C38 |
| Date: | 2013–05–08 |
| URL: | http://d.repec.org/n?u=RePEc:mia:wpaper:2013-10&r=env |
| By: | Klaus Eisenack (University of Oldenburg, Department of Economics); Leonhard Kähler |
| Abstract: | Policy advocates frequently request for unilateral action to push forward climate protection in international negotiations. It is yet conventional wisdom in environmental economics that unilateral action does not pay for the first mover due to free-riding behavior of the other countries. How does this analysis change if there is a further option at hand: off-setting damages from joint emissions by individual adaptation measures? Adaptation to climate change plays an increasingly role in the international negotiations under the UNFCCC. This paper shows that when adaptation is considered as an explicit decision variable, and unilateral action is framed as a Stackelberg game, the resulting convexity properties imply (when the follower has a specific property) that total emissions are reduced to the benefit of all countries in the game equilibrium. When countries play a game of timing in a period before emission and adaptation decisions – to determine who takes the role of the Stackelberg leader – it is shown that a country with this specific property indeed becomes the follower. The equilibrium of the overall game is Pareto superior to the non-cooperative Nash solution. |
| Keywords: | international environemental problems; climate change; Stackelberg<br>game; convexity |
| Date: | 2012–01 |
| URL: | http://d.repec.org/n?u=RePEc:old:dpaper:344&r=env |
| By: | Christoph Böhringer (University of Oldenburg, Department of Economics); Knut Einar Rosendahl (Norwegian University of Life Science and Statistics Norway); Jan Schneider (University of Oldenburg, Department of Economics) |
| Abstract: | In the abscence of a global agreement to reduce greenhouse gas emissions, individual countries have introduced national climate policies. Unilateral action involves the risk of relocating emissions to regions without climate regulations, i.e., emission leakage. A major channel for leakage are price changes in the international oil market. Previous studies on leakage have assumed competitive behaviour in this market. Here, we consider alternative assumptions about OPEC’s behaviour in order to assess how these affect leakage and costs of unilateral climate policies. Our results based on simulations with a large-scale computable general equilibrium model of the global economy suggest that assumptions on OPEC’s behaviour are crucial to the impact assessment of unilateral climate policy measures. We find that leakage through the oil market may become negative when OPEC is perceived as a dominant producer, thereby reducing overall leakage drastically compared to a setting where the oil market is perceived competitive. |
| Keywords: | Carbon Leakage, Oil Market, OPEC Behaviour |
| JEL: | C72 Q41 Q54 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:old:dpaper:355&r=env |
| By: | Anna Pechan (University of Oldenburg, Department of Economics); Klaus Eisenack (University of Oldenburg, Department of Economics) |
| Abstract: | Thermoelectric power plants depend on cooling water drawn from water bodies. Low river run-off and/or high water temperatures limit a plant’s production capacity. This problem may intensify with climate change. To what extent do such capacity reductions affect electricity spot markets? Who bears the consequent costs? How is this influenced by climate change and a change in the electricity generation system? We quantify these effects by means of a bottom-up power generation system model. First, we simulate the German electricity spot market during the heat wave in 2006, and then conduct a sensitivity study that accounts for future climatic and technological conditions. We find an average price increase of 11%, which is even more pronounced during times of peak demand. Production costs accumulate to additional but moderate e15.9 m during the two week period. Due to the price increase producers gain from the heat wave and consumers disproportionately bear the costs. Carbon emissions increase during the heat wave. The price and cost effects are more pronounced and significantly increase if assumptions on heat-sensitive demand, hydro power capacity, net exports and capacity reductions are tightened. These are potential additional effects of climate change. Hence, if mitigation fails or is postponed<br>globally, the impacts on the current energy system are very likely to rise. Increases in feed-in from renewable resources and demand-side management can counter the effects to a considerable degree. Countries with a shift to renewable energy supply can be expected to be much less susceptible to water scarcity than those with a high share of nuclear and coal-fired power plants. |
| Keywords: | Electricity Market, Heat Wave, Germany, Climate Change |
| JEL: | Q41 Q54 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:old:dpaper:357&r=env |
| By: | Gutierrez-Hita, Carlos; Martinez-Sanchez, Francisco |
| Abstract: | Many products are made by technological processes that cause environmental damage. Current environmental concerns are affecting firms' technological processes as a result of government intervention in markets but also due to environmental awareness on the part of consumers. This paper assumes a spatial competition model where two firms sell a homogeneous product with input differentiation: the product is made by green and polluting inputs. In a two-stage game firms first decide what technology bundle to use (the ratio of green and polluting inputs) and then Bertrand competition takes place. First, it is shown that in the absence of government intervention both firms prefer to produce by using a bundle of green and polluting technologies which is not welfare maximizing. Second, the option of subsidizing green technology and the existence of a publicly-owned firm are analyzed. Overall, both policies yield a more environmentally-friendly technology bundle, except when costs of green energy technologies are high enough. Moreover, environmental social welfare is enhanced. |
| Keywords: | Differentiated inputs · Environmental policy · Green market · Mixed duopoly · Subsidy |
| JEL: | D11 D43 L11 |
| Date: | 2013–05–29 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:47263&r=env |
| By: | Juan Carlos CISCAR (JRC IPTS , European Commission); Bert Saveyn (JRC IPTS, European Commission); Antonio Soria (JRC IPTS, European Commission); Lazlo Szabo (Corvinus University, Regional Centre for Energy Policy Research); Denise Van Regemorter (KU Leuven); Tom Van Ierland (DG Clima, European Commission) |
| Abstract: | The distribution of the mitigation burden across countries is a key issue regarding the post-2012 global climate policies. This article explores the economic implications of alternative allocation rules, an assessment made in the run-up to the COP15 in Copenhagen (December 2009). We analyse the comparability of the allocations across countries based on four single indicators: GDP per capita, GHG emissions per GDP, population growth, and the GHG emission trend in the recent past. The multi-sectoral computable general equilibrium model of the global economy, GEM-E3, is used for that purpose. Further, the article also compares a perfect carbon market without transaction costs with the case of a gradually developing carbon market, i.e. a carbon market with (gradually diminishing) transaction costs. |
| Keywords: | International climate policy, GHG reduction, Copenhagen Accord, general equilibrium |
| JEL: | Q54 C68 |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc68856&r=env |
| By: | Serge Roudier (European Commission – JRC - IPTS); Luis Delgado Sancho (European Commission – JRC - IPTS); Bianca Scalet (European Commission – JRC - IPTS); Marcos Garcia Muñoz; Aivi |
| Abstract: | This BAT reference document for the Iron and Steel Production forms part of a series presenting the results of an exchange of information between EU Member States, the industries concerned, non-governmental organisations promoting environmental protection and the Commission, to draw up, review, and where necessary, update BAT reference documents as required by Article 13(1) of the Directive on industrial emissions (2010/75/EU). This document is published by the European Commission pursuant to Article 13(6) of the Directive. |
| Keywords: | Best Available Techniques, BAT reference document, Glass |
| JEL: | Q52 Q53 Q55 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc78091&r=env |
| By: | Christoph Böhringer (University of Oldenburg, Department of Economics, Germany); Brita Bye (Statistics Norway, Oslo, Norway); Taran Fæhn (Statistics Norway, Oslo, Norway); Knut Einar Rosendahl (Statistics Norway, Oslo, Norway) |
| Abstract: | In the absence of effective world-wide cooperation to curb global warming, import tariffs on embodied carbon have been proposed as a potential supplement to unilateral emissions pricing. We consider alternative designs for such tariffs, and analyze their effects on global welfare within a multi-region, multi-sector computable general equilibrium (CGE) model of global trade and energy. Our analysis suggests that the most cost-efficient policy could be region-specific tariffs on all products, based on direct plus electricity emissions. In the end, however, the potential cost savings through carbon tariffs must be weighed against the administrative costs as well as legal issues and political considerations. |
| Keywords: | carbon leakage, embodied carbon, border tariffs |
| JEL: | Q43 Q54 H2 D61 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:old:dpaper:345&r=env |
| By: | Christoph Böhringer (University of Oldenburg, Department of Economics, Germany); Jared C. Carbone (University of Calgary, Canada); Thomas F. Rutherford (University of Wisconsin, USA) |
| Abstract: | The cost-effectiveness of unilateral emission abatement can be seriously hampered by emission leakage. We assess three widely-discussed proposals for leakage reduction targeted at energy-intensive and trade-exposed industries: border tax adjustments, output-based allocation and industry exemptions. We find that none of these measures amounts to a “magic bullet” when both efficiency and equity criteria matter. Border tax adjustments reduce leakage and provide global cost savings but exacerbate regional inequality. Exemptions produce very little leakage reduction and run the risk of increasing efficiency cost of climate policy. Output-based allocation does no harm but also does relatively little good by our outcome measures. |
| Keywords: | Unilateral Climate Policy, Leakage, Efficiency, Equity |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:old:dpaper:346&r=env |
| By: | Christoph Böhringer (University of Oldenburg, Department of Economics); Andreas Lange (University of Hamburg, Department of Economics, Germany); Thomas F. Rutherford (ETH Zürich, CEPE, Switzerland) |
| Abstract: | Carbon leakage provides an efficiency argument for unilateral climate policy to differentiate emission prices in favor of emission-intensive and trade-exposed sectors. At the same time, differential emission pricing can be (mis-)used as a beggar-thy-neighbor policy to exploit terms of trade. Using an optimal tax framework, we propose a method to decompose the leakage motive and the terms-of-trade motive for emission price differentiation. We employ our method for a quantitative impact assessment of unilateral climate policy based on empirical data. We find that the leakage motive yields only small efficiency gains compared to uniform emission pricing. Likewise, the terms-of-trade motive has rather limited potential for strategic burden shifting. We conclude that the simple first-best rule of uniform emission pricing remains a practical guideline for unilateral climate policy design. |
| Keywords: | optimal taxation, emission leakage, terms of trade |
| JEL: | H21 Q43 R13 D58 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:old:dpaper:347&r=env |
| By: | Jana Soukopova; Jana Soukopova (Department of Public Economics, Masaryk University) |
| Abstract: | The paper presents the methodology for monitoring and evaluating the efficiency of current environmental protection expenditures of municipalities developed within the project of Ministry of Environment of the Czech Republic. The methodology has been approved as the voluntary environmental tool for municipal officials. A proposal of methodological procedure for evaluating municipal environmental protection expenditure is based on multi-criteria weighed assessment. It gives municipalities the instrument for assessment of expenditure efficiency and includes all three pillars of sustainable development – economical, ecological and environmental. In the paper are investigate outputs which results from the evaluation of environmental protection expenditures in the city of Brno that is the second largest city in the Czech Republic and represents the territory where live approximately 380 000 citizens. The results show real state of expenditure efficiency in the city Brno and point out the possibility of improving the current situation. The methodology is assessing tool based on available data usable for other states and their municipalities for evaluation of effectiveness of public spending at the local level. |
| Keywords: | methodology; efficiency; municipality; environmental protection expenditure. |
| JEL: | D61 H59 H76 |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:mub:wpaper:08&r=env |
| By: | Singh, K.M. |
| Abstract: | We can ignore the state of global and national land and water resources only at our great peril. We tend to assume that environmental degradation is a contemporary condition, but there is historical evidence to show that cultures rise and fall on their agricultural base’s ability to support the rest of society. The balance between population and agricultural productivity becomes more and more precarious as a society becomes more complex and the drive for a continuing food supply to support all the non-producers places more and more demands upon land and water resources. We now face a scenario in which global exploitation of resources has expanded a local environmental phenomenon into a world-scale problem. Already, 6% of the earth’s surface is classified as extreme desert, and a further 29% is subject to varying degrees of desertification. Any expansion in the extent or intensity of agricultural production would require sustainable management of the land-water-vegetation system. The paper discussed the issues and strategies which may find an answer to ensure sustainable development of agricultural sector in India. |
| Keywords: | Sustainable agriculture, Organic farming, Bio-safety, Pesticide misuse |
| JEL: | Q01 Q2 Q51 Q57 |
| Date: | 2013–05–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:47418&r=env |
| By: | Bernhard Klaus Michel |
| Abstract: | Since the mid-90's, production-related air emissions in Belgian manufacturing have been reduced substantially and it can be shown that the pace of the reduction has been fastest for domestic intermediates. It is widely debated whether offshoring has played a role in this reduction by replacing domestic intermediates by imported intermediates. This paper develops a decomposition analysis to measure the contribution of offshoring – the share of imported intermediates in total intermediates – to the fall in air emission intensities for domestic intermediates. This decomposition analysis reveals that 27% of the fall in the intensity of greenhouse gas emissions, 20% of the fall in the intensity of acidifying emissions and 20% of the fall in the intensity of tropospheric precursor emissions in Belgian manufacturing between 1995 and 2007 can be attributed to offshoring. |
| JEL: | F18 Q53 |
| Date: | 2013–05–24 |
| URL: | http://d.repec.org/n?u=RePEc:fpb:wpaper:1305&r=env |
| By: | Christoph Böhringer (University of Oldenburg, Department of Economics); Thomas F. Rutherford (University of Wisconisn-Madison); Marco Springmann (University of Oldenburg, Department of Economics) |
| Abstract: | The Clean Development Mechanism (CDM) established under the Kyoto Protocol allows industrialized Annex I countries to offset part of their domestic emissions by investing in emissionsreduction projects in developing non-Annex I countries. We present a novel CDM modelling framework which can be used in computable general equilibrium (CGE) models to quantify the sector-specific and macroeconomic impacts of CDM investments. Compared to conventional approaches that mimic the CDM as sectoral emissions trading, our framework adopts a microeconomically consistent representation of the CDM incentive structure and its investment<br>characteristics. In our empirical application we show that incentive compatibility implies that the sectors implementing CDM projects do not suffer, and that overall cost savings from the CDM tend to be lower than suggested by conventional modelling approaches. |
| Keywords: | Clean Development Mechanism, Computable General Equilibrium Modeling |
| JEL: | C68 Q58 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:old:dpaper:354&r=env |
| By: | Salvador Barrios (European Commission – JRC - IPTS); Juan Nicolas Ibañez Rivas (Technical University of Denmark, Department of Transport) |
| Abstract: | The objective of this study is to analyse the potential impact of climate change on EU tourism demand and to provide long-term (2100) scenarios to be used in the general equilibrium GEM-E3 to allow for potential interactions with the rest of the economy. The analysis is based on a bottom-up approach to derive country-wide figures making use of detailed regional data. Our study brings three novel aspects to the existing literature on recreational demand and climate. First, we derive region-specific estimates of the impact of climate change based on tourists flows between European regions taking into account regions' specific characteristics regarding the nature of (and degree of specialisation in) tourism activities and related vulnerability to potential climate change scenarios. Second, our long-term projections for tourism demand are based on hedonic valuation of climatic conditions combining hotel price information and travel cost estimations. Such an approach allows us to consider together the climatic aspect of recreational demand and its travel cost dimension. In doing so we are able to estimate differentiated valuations of climate amenities depending on the distance travelled by tourists by region of origin and destination. This in turn allows us to further differentiate the valuation of climatic conditions depending on the time duration of holidays. Third, based on this travel-cost/holiday duration approach we can derive alternative scenarios for adaptation of holiday demand to potential climate change scenarios combining two dimensions related to adaptation: an institutional dimension, by considering alternative hypotheses regarding the monthly distribution of total tourism demand, and a time dimension by considering alternative scenarios regarding holiday duration. Our main results show that the climate dimension play a significant (economically and statistically) role in explaining hedonic valuations of tourism services and, as a consequence, its variation in the long-term are likely to affect the relative attractiveness of EU regions for recreational demand. In certain cases, most notably the Southern EU Mediterranean countries climate condition in 2100 could under current economic conditions, lower tourism revenues for up to -0.45% of GDP. On the contrary, other areas of the EU, most notably Northern European countries would gain from altered climate conditions, although these gains would be relatively more modest, reaching up to 0.32% of GDP. We also find that adaptation in the duration of holiday rather than on the monthly pattern of holiday could potentially mitigate these losses. |
| Keywords: | Climatic change, tourism, hedonic prices, travel cost, Europe |
| JEL: | Q51 Q54 Q52 R41 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc80898&r=env |
| By: | Heinz Welsch (University of Oldenburg, Department of Economics); Jan Kühling (University of Oldenburg, Department of Economics) |
| Abstract: | We develop and test a model of social comparison in which individuals gain status through pro-social behavior (competitive altruism) and in which they endogenously choose the reference group and associated reference standard involved in signaling status (reference group selection). In our framework of private provision of environmental public goods, the optimal reference standard involves a balance between the magnitude of the status signal (implying a low reference standard) and the higher value of the signal in a greener social environment. By using a unique set of survey data we find evidence of (a) respondents behaving in a competitively altruistic fashion and (b) reference persons’ intensity of pro-environmental behavior depending on relevant attitudes of the respondents, consistent with predictions from our framework of reference group selection. |
| Keywords: | competitive altruism; reference groups; endogenous reference standard; pro-environmental behavior; private public good provision |
| JEL: | D64 H31 H41 Q00 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:old:dpaper:350&r=env |
| By: | Ingrid Dallmann (Analyse des Dynamiques Industrielles et Sociales (ADIS) - Université Paris-Sud); Katrin Millock (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris) |
| Abstract: | We match migration data from the Indian census with climate data to test the hypothesis of climate variability as a push factor for internal migration. The main contribution of the analysis is to introduce relevant meteorological indicators of climate variability, based on the standardized precipitation index. Gravity-type estimations derived from a utility maximization approach cannot reject the null hypothesis that the frequency of drought acts as a push factor on inter-state migration in India. The effect is significant for both male and female migration rates. Drought duration and magnitude as well as flood events are never statistically significant. |
| Keywords: | Climate change; India; internal migration; PPML, SPI |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-00825807&r=env |
| By: | Henry, Marc; Galichon, Alfred (Département d'économie) |
| Abstract: | Cet article illustre le lien entre identification partielle dans les modèles économétriques et critères de décision de Jaffray dans l'incertain non probabilisé à travers l'univers du choix de niveau optimal d'émissions toxiques dans un lac partagé entre deux communes. |
| Keywords: | décision en environnement incertain, identification partielle, fonction de croyance, pollution, réchauffement climatique, taux d'escompte, valorisation des biens environnementaux.; |
| JEL: | D81 Q51 |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:ner:sciepo:info:hdl:2441/5rkqqmvrn4tl22s9mc0ol6k1l&r=env |
| By: | K.C. Fung; Jane Korinek |
| Abstract: | Governments intervene in non-renewable natural resources sectors more than in many others, including through the use of export taxes and quotas. Industrial raw materials sectors are characterized by a number of specificities: production is often geographically concentrated, firms are often large with substantial market power, production processes are highly capital intensive, products are relatively homogeneous and potentially substantial differences in costs of production are prevalent. This paper aims to increase understanding of the economic effects of export restrictions, in particular as they apply to the mining sector. It ascertains the prevalence of export restrictions on metals and minerals, proposes a Cournot-Nash model of export restrictions, suggests some of the economic effects due to the presence of export restrictions, and draws some implications for trade policy among producing and consuming countries of non-renewable natural resources. |
| Keywords: | export restrictions, export taxes, export quotas, export prohibition, extractive industries, export ban, industrial raw materials, mining sector, Cournot-Nash model |
| JEL: | F12 F13 L72 |
| Date: | 2013–05–14 |
| URL: | http://d.repec.org/n?u=RePEc:oec:traaab:155-en&r=env |
| By: | Venkatachalam Anbumozhi (Asian Development Bank Institute (ADBI)); Armin Bauer |
| Abstract: | Half of the world’s population—3 billion people—lives below the poverty line, and Asia has the largest share. In pursuit of sustainable economic development and poverty alleviation, there is great potential among low-income households for green consumption, production, innovation, and entrepreneurial activity. This paper shows how an inclusive green growth model can uplift the poor through entrepreneurship and fiscal policy reforms. To make the case, this paper cites examples of institutions and policies in Asia that have successfully generated and tapped into the potentials of low-income households. Low-income households are recognized as resilient, value-conscious consumers and creative entrepreneurs in the inclusive and green growth paradigm. Low-income households can be the engine of a new development strategy; they can be a source of innovation for providing basic services in a green way. Evidence suggests that, without effective financial systems, not all market actors can sustain their businesses. Therefore, policy interventions are necessary to encourage and financially support enterprises to adopt best available technologies and incorporate innovative practices that are environmentally beneficial. The paper recommends fflexible redistributive and transformative public expenditure schemes and finance sector development to surmount the bottlenecks towards achieving inclusive and green growth. |
| Keywords: | Green growth, low-carbon, Inequality, Asia, low-income households, redistributive and transformative public expenditure schemes, inclusive growth |
| JEL: | E62 H61 Q2 Q3 Q4 |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:eab:macroe:23423&r=env |
| By: | Hossein Mirshojaeian Hosseini (Graduate School for International Development and Cooperation, Hiroshima University); Shinji Kaneko (Graduate School for International Development and Cooperation, Hiroshima University) |
| Abstract: | To prevent further increases in energy consumption, the Iranian government commenced energy subsidy reform in 2010. This paper investigates the fuel conservation effects of the reform in Iran using a homothetic translog cost function that provides estimates of the own- and cross-price elasticities of fuel demands. The percentage reduction in fuel demands is estimated using the likely effect of the reform on fuel prices. The results reveal that the reform may not be as successful as assumed. Under optimistic assumptions, the reform may reduce energy consumption marginally, and under pessimistic assumptions, it may increase energy consumption because of inelastic fuel demands and substantial substitution between fuels. |
| Keywords: | Energy subsidy reform, Energy conservation, Iran, Translog cost function |
| JEL: | C32 Q38 Q43 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:eut:wpaper:01&r=env |
| By: | Moinul Islam (Tohoku University); Koji Kotani (International University of University) |
| Abstract: | Bangladesh is vulnerable to climatic changes, and there has been a serious debate about the occurrence and the relationship of a change in climate to the frequency of ooding. For example, areas of Dhaka are hypothesized to possess four seasons rather than the six seasons that have traditionally comprised the annual calendar. Despite the importance of this topic, it has received little research attention. Thus, we examine (i) whether a change in climatic patterns is occurring, and (ii) the perceptions and attitudes of people living in this area. We conducted face-to-face surveys with 1,011 respondents of different social and demographic strata and seven experts in Bangladesh. Using these data, we analyze how closely people's perceptions align with climate data, and whether six seasons are becoming four seasons. Finally, we characterize the determinants of people's cooperative attitudes toward ood controls by examining their willingness to pay (WTP).We obtain the following principal results. First, most people correctly perceive the nature of climate variables. Moreover, people's perceptions and our statistical analysis of climate are identical in indicating that the annual calendar is transitioning to four seasons. Second, people who correctly perceive climatic changes tend to express a higher WTP than those who do not. Overall, these ndings suggest that a change in seasonal climatic patterns is occurring in the area. Informational and educational efforts related to accurate climate perceptions are keys to increasing cooperation into managing climatic change and related disasters. |
| Keywords: | climatic change, seasonal change, perception, willingness to pay, food |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:iuj:wpaper:ems_2013_06&r=env |
| By: | Xavier Galiègue (LEO - Laboratoire d'économie d'Orleans - CNRS : UMR7322 - Université d'Orléans) |
| Abstract: | Si les innovations environnementales vont être amenées à jouer un rôle décisif dans les transitions énergétiques, leur mise en oeuvre n'a rien de spontané et nécessite de faire appel à des schémas incitatifs crédibles et des mesures réglementaires fortes. Les techniques en jeu sont en effet lourdes, engageant des externalités de réseau et des économies d'échelle, avec une forte incertitude technique et économique. Dans le domaine des transitions énergétiques le progrès technique peut aboutir ainsi à des " effets de rebond ", l'amélioration de l'efficience énergétique d'une technique pouvant prolonger son utilisation et retarder l'adoption de techniques permettant de réduire plus drastiquement l'intensité en carbone de l'économie. Les techniques de capture et de stockage de carbone, à partir d'énergie fossile (CCS) ou de biomasse (BECCS) apparaissent de ce point de vue comme un moyen de rendre compatible l'utilisation des énergies fossiles avec la réduction des émissions de gaz à effet de serre. Elles n'échappent aux contraintes décrites précédemment, auxquelles il faut ajouter celles pesant sur le prix du carbone évité, sur leur statut réglementaire, et leur acceptabilité. En tout état de cause l'intégration de ces techniques reste une priorité pour les systèmes nationaux d'innovation. |
| Keywords: | Economie de l'environnement, Economie de l'innovation, Economie de l'énergie, Capture et Stockage du CO2 , Capture et Stockage du CO2 à partir de la Biomasse. |
| Date: | 2012–02–16 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00826952&r=env |
| By: | Olivia Ricci (LEO - Laboratoire d'économie d'Orleans - CNRS : UMR7322 - Université d'Orléans) |
| Abstract: | La France s'est fixée comme objectif de diviser par quatre ses émissions de gaz à effet de serre d'ici 2050 par rapport au niveau de 1990. L'objectif de l'étude est de déterminer les politiques publiques à mettre en oeuvre pour atteindre ce Facteur 4 compte tenu de la disponibilité de la capture et du stockage du carbone issu d'énergie fossile (CSC) et de biomasse (BCSC). Nous évaluons les effets de l'introduction de la contribution climat-énergie (CCE) envisagée par le Grenelle de l'environnement et nous comparons l'efficacité économique d'une panoplie d'instruments grâce à un modèle d'équilibre général calculable. L'étude montre que la CCE proposée engendre un ralentissement de l'activité économique et que les instruments les plus économiquement efficaces sont ceux qui permettent également de développer la CSC et la BCSC, notamment la taxe carbone dont les revenus sont recyclés pour subventionner la BCSC. |
| Keywords: | Capture et stockage du carbone ; biomasse ; taxe carbone ; instruments économique ; Facteur 4 ; modèle d'équilibre général calculable |
| Date: | 2012–10–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00828090&r=env |