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on Environmental Economics |
| By: | Ruth Namakonzi (P.O. Box 5048, Kampala, Uganda. E-mail: namakonzi_ruth@yahoo.co.uk); Ruth Namakonzi (Corresponding author. Maastricht School of Management, Endepolsdomein 150, 6229 EP Maastricht. Postbus 1209, 6201 BE Maastricht The Netherlands. E-mail: inanga@msm.nl) |
| Abstract: | Given the importance of the environment and the attention environmental issues are currently receiving from public and private organisations, it has become crucial for companies, especially in manufacturing industries, to consider the impact of their activities on the environment. This is because the large amount of material, energy and water consumed by these industries constitute a major source of carbon dioxide, waste and effluents emissions. The aim of this study is to find out what actions, if any, manufacturing industries in Uganda are taking to enhance effective environmental management, the extent to which environmental management accounting (EMA) is applied, as well as costs and challenges that these industries face in the process of implementing EMA to achieve effective environmental management.Some of the study findings reveal that manufacturing companies in Uganda are, indeed, taking environmental issues seriously. Some companies are adopting internally developed environmental policies, setting environmental goals and objectives. Some manufacturing firms have encountered challenges in achieving set environment management goals. The greatest of these challenges arer difficulties in defining, separating, identifying, classifying, measuring and controlling environmental protection costs. Others include inaccessibility to environmental management technologies, limitknowledge and training, endemic corruption and inadequate legislation. The study ends with recommendations and suggests areas for further research. |
| Keywords: | Environmental Management Accounting (EMA); Environmental management; Environmental costs and manufacturing industries. |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:msm:wpaper:2014/39&r=env |
| By: | Andreas Lange (University of Hamburg); Claudia Schwirplies (University of Kassel); Andreas Ziegler (University of Kassel) |
| Abstract: | This paper provides theoretical and empirical insights on the extent to which the availability of carbon offsetting may substitute the individual use of other carbon-reducing measures. Theoretically, we demonstrate an ambiguous impact of offsetting on the use of other measures and derive conditions under which both are substitutes or complements. We then empirically test our predictions using data from representative surveys among more than 2000 citizens in Germany and the U.S. Considering seven measures that can be taken by individuals to direct-ly reduce greenhouse gas emissions, our empirical evidence is consistent with the theoretical predictions that substitution occurs particularly if individuals lay a sufficiently large weight on environmental preference or if offsetting is perceived to be relatively effective in providing the public good climate protection. Complementary effects are shown to exist for a perceived intermediate effectiveness of offsetting activities. |
| Keywords: | On the interrelation between carbon offsetting and other voluntary climate protection activities: Theory and empirical evidence |
| JEL: | C25 Q54 Q58 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201447&r=env |
| By: | Adnen Ben Nasr (Laboratoire BESTMOD, ISG de Tunis, Universite de Tunis, Tunisia.); Rangan Gupta (Department of Economics, University of Pretoria, South Africa.); Joao Ricardo Sato (Center of Mathematics, Computation and Cognition, Universidade Federal do ABC,Brazil.) |
| Abstract: | There exists a huge international literature on the, so-called, Environmental Kuznets Curve (EKC) hypothesis, which in turn, postulates an inverted u-shaped relationship between environmental pollutants and output. The empirical literature on EKC has mainly used test for cointegration, based on polynomial relationships between pollution and income. Motivated by the fact that, measured in per capita CO2 equivalent emissions, South Africa is the world’s most carbon-intensive non-oil-producing developing country, this paper aims to test the validity of the EKC for South Africa. For this purpose, we use a century of data (1911-2010), to capture the process of development better compared to short sample-based research; and the concept of co-summability, which is designed to analyze non-linear long-run relations among persistent processes. Our results, however, provide no support of the EKC for South Africa, implying that to reduce emissions without sacrificing growth, policies should be aimed at promoting energy efficiency. |
| Keywords: | Environmental Kuznets Curve, CO2 emissions; Output; Co-summability; South Africa |
| JEL: | C01 C22 Q53 |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:201466&r=env |
| By: | James A. Lennox (Fondazione Eni Enrico Mattei (FEEM)); Jan Witajewski (Fondazione Eni Enrico Mattei (FEEM)) |
| Abstract: | We develop a theoretical model of directed technical change in which clean (zero emissions) and dirty (emissions-intensive) technologies are embodied in long-lived capital. We show how obsolescence costs generated by technological embodiment create inertia in a transition to clean growth. Optimal policies involve higher and longer-lasting clean R&D subsidies than when technologies are disembodied. From a low level, emissions taxes are initially increased rapidly, so they are higher in the long run. There is more warming. Introducing spillovers from an exogenous technological frontier representing non-energy-intensive technologies reduces mitigation costs. Optimal taxes and subsidies are lower and there is less warming. |
| Keywords: | Climate Change Mitigation, Directed Technical Change, Capital-Embodiment, Investment-Specific Technological Change, Obsolescence |
| JEL: | O33 O44 Q54 Q55 Q58 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2014.73&r=env |
| By: | Elmar A. Janssen (University of Paderborn) |
| Abstract: | Climate change is one of the biggest problems humankind is currently facing. Therefore, there have recently been a rising number of studies which analyze the economic components of climate change. Especially experimental economics offer a promising way to circumvent the missing data problem and the lack of control in the field. The present study experimentally analyzes the influence of transparency on investments in climate protection using a collective-risk social dilemma framework. The results are as follows: There is a positive influence of transparency on investments in climate change, but it turns out to be not significant. However, the results of the present study taken together with the results of former studies using the same framework indicate that information saliency regarding climate change and climate protection have a huge promoting influence on investments in climate protection and therefore could be a part of the solution of the climate change problem. |
| Keywords: | climate change, emission reduction, public goods game, transparency, economic experiment |
| JEL: | Q54 H41 D03 |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:pdn:dispap:06&r=env |
| By: | Masako Ikefuji (University of Southern Denmark, Esbjerg, Denmark); Jan Magnus (VU University Amsterdam, Netherlands); Hiroaki Sakamoto (Waseda University, Japan) |
| Abstract: | This paper develops a dynamic model consisting of two regions (North and South), in which the accumulation of human capital is negatively influenced by the global stock of pollution. By characterizing the equilibrium strategy of each region, we show that the regions' best responses can be strategic complements through a dynamic complementarity effect. The model is used to analyze the impact of adaptation assistance from North to South. It is shown that North's unilateral assistance to South (thus enhancing South's adaptation capacity) can facilitate pollution mitigation in both regions, especially when the assistance is targeted at human capital protection. |
| Keywords: | Climate change, mitigation, adaptation, human capital |
| JEL: | D91 Q54 Q58 |
| Date: | 2014–09–19 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20140126&r=env |
| By: | Maria Jose Gil-Molto; Dimitrios Varvarigos |
| Abstract: | We compare economic and environmental outcomes under mixed and private oligopolies, in order to examine the effects of privatization when firms invest in abatement and emissions are taxed. We show that the number of competing firms in the market is an important factor in the determination of these effects. While privatization often involves a welfare trade-off, in the sense that higher (lower) output production implies higher (lower) pollution, there are also circumstances where it leads to both lower output and higher emissions simultaneously. Our results also indicate that privatization tends be associated with reductions in social welfare. |
| Keywords: | Privatization, Pollution, Abatement, Mixed Oligopoly |
| JEL: | L22 L32 Q52 |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:lec:leecon:14/15&r=env |
| By: | Halkos, George; Kitsou, Dimitra |
| Abstract: | Relying on Pigou's view, environmental taxes increase the costs of polluting activities reflecting in this way the true social cost imposed to society by the caused environmental damage by these activities. The total pollution cost (TPC) is defined by adding up the marginal abatement (MAC) and the marginal damage (MD) costs. That is the random variable TPC includes the social costs associated with pollution. We relate this with contaminated locations and propose a weighted location differentiated tax and a corresponding index that adjusts taxation to the damages caused. It is clear that the value of the expected total pollution (social) cost, E(TPC), would be of interest and therefore we proceed to the evaluation through the use of the γ-order Generalized Normal. The value of the variance, Var(TPC), is also evaluated and we provide a generalized form of the E(TPC) as far (i) the form of TPC and (ii) the probability density function. |
| Keywords: | Weighted-location adjusted differential tax; pollution related social cost; expected value; technology; probability density function. |
| JEL: | C02 C60 Q50 Q53 Q58 |
| Date: | 2014–10–26 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:59502&r=env |
| By: | Audoly, Richard; Vogt-Schilb, Adrien; Guivarch, Celine |
| Abstract: | This paper covers three policy-relevant aspects of the carbon content of electricity that are well established among integrated assessment models but under-discussed in the policy debate. First, climate stabilization at any level from 2 to 3°C requires electricity to be almost carbon-free by the end of the century. As such, the question for policy makers is not whether to decarbonize electricity but when to do it. Second, decarbonization of electricity is still possible and required if some of the key zero-carbon technologies -- such as nuclear power or carbon capture and storage -- turn out to be unavailable. Third, progressive decarbonization of electricity is part of every country's cost-effective means of contributing to climate stabilization. In addition, this paper provides cost-effective pathways of the carbon content of electricity -- computed from the results of AMPERE, a recent integrated assessment model comparison study. These pathways may be used to benchmark existing decarbonization targets, such as those set by the European Energy Roadmap or the Clean Power Plan in the United States, or inform new policies in other countries. The pathways can also be used to assess the desirable uptake rates of electrification technologies, such as electric and plug-in hybrid vehicles, electric stoves and heat pumps, or industrial electric furnaces. |
| Keywords: | Climate Change Mitigation and Green House Gases,Energy Production and Transportation,Environment and Energy Efficiency,Energy and Environment,Transport Economics Policy&Planning |
| Date: | 2014–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7075&r=env |
| By: | JoAnn Carmin; David Dodman; Eric Chu |
| Abstract: | The impacts of climate change are expected to create numerous challenges for cities. This report synthesizes key points raised in a series of discussions among “adaptation leaders” from fourteen cities around the world. Critical issues for urban adaptation that emerged from the discussions include the need for political commitment at multiple levels of government, information and data as a basis for understanding potential risks and vulnerabilities, meaningful and effective stakeholder engagement shaped by local contexts, and sustained financial and staff resources that are sensitive to urban variability. Further, the findings highlight how policy-makers and international organizations working with cities on issues of adaptation and resilience must support and facilitate processes of testing ideas, learning from experiences, and recalibrating as new information is obtained and lessons are learned. |
| Keywords: | urban development, urban governance, partnerships and participation, climate change adaptation, urban planning |
| JEL: | O19 O20 O21 O22 Q51 Q52 Q53 Q54 Q55 Q56 Q58 R00 |
| Date: | 2013–12–16 |
| URL: | http://d.repec.org/n?u=RePEc:oec:govaab:2013/26-en&r=env |
| By: | Frédéric Branger (CIRED and AgroParistech ENGREF (France)); Philippe Quirion (CIRED and CNRS (France)) |
| Abstract: | We analyse variations of carbon emissions in the European cement industry from 1990 to 2011, at the European level (EU 27), and at the national level for six major producers (Germany, France, Spain, United Kingdom, Italy and Poland). We apply a Log-Mean Divisia Index (LMDI) method, crossing data from three databases: the Getting the Numbers Right (GNR) database developed by the Cement Sustainability Initiative, the European Union Transaction Log (EUTL), and the Eurostat International Trade database. Our decomposition method allows disentangling seven channels of emissions change: activity, clinker trade, clinker share, alternative fuels, thermal and electric energy efficiency, and electricity decarbonisation. We find that, apart from a slow trend of emissions reductions coming from technological improvements (first from a decrease in the clinker share, then from an increase in alternative fuels), most of the emissions changes can be attributed to the activity effect. Using counterfactual scenarios, we estimate that the introduction of the EU ETS brought small but positive technological abatement (2.0% ± 1.1% between 2005 and 2011). Moreover, we find that the European cement industry have ained 3.5 billion euros of “overallocation profits”, mostly due to the slowdown of production. Based on these findings, we advocate for output-based allocations, based on a stringent hybrid clinker and cement benchmarking. |
| Keywords: | Cement Industry, LMDI, EU ETS, Abatement, Overallocation, Windfall Profits, Overallocation Profits, Carbon Emissions, Energy Efficiency |
| JEL: | Q4 Q48 Q55 |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2014.77&r=env |
| By: | Ranson, Matthew (Abt Associates Inc); Stavins, Robert N. (Harvard University) |
| Abstract: | The last ten years have seen the growth of linkages between many of the world's cap-and-trade systems for greenhouse gases (GHGs), both directly between systems, and indirectly via connections to credit systems such as the Clean Development Mechanism. If nations have tried to act in their own self-interest, this proliferation of linkages implies that for many nations, the expected benefits of linkage outweighed expected costs. In this paper, we draw on the past decade of experience with carbon markets to test a series of hypotheses about why systems have demonstrated this revealed preference for linking. Linkage is a multi-faceted policy decision that can be used by political jurisdictions to achieve a variety of objectives, and we find evidence that many economic, political, and strategic factors--ranging from geographic proximity to integrity of emissions reductions--influence the decision to link. We also identify some potentially important effects of linkage, such as loss of control over domestic carbon policies, which do not appear to have deterred real-world decisions to link. These findings have implications for the future role that decentralized linkages may play in international climate policy architecture. The Kyoto Protocol has entered what is probably its final commitment period, covering only a small fraction of global GHG emissions. Under the Durban Platform for Enhanced Action, negotiators may now gravitate toward a hybrid system, combining top-down elements for establishing targets with bottom-up elements of pledge-and-review tied to national policies and actions. The incentives for linking these national policies are likely to continue to produce direct connections among regional, national, and sub-national cap-and-trade systems. The growing network of decentralized, direct linkages among these systems may turn out to be a key part of a future hybrid climate policy architecture. |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:harjfk:rwp14-012&r=env |
| By: | Jussila Hammes , Johanna (VTI) |
| Abstract: | European Union’s (EU) energy legislation from 2009 is still being implemented in the Member States. We study analytically the Renewable Energy Directive and the Fuel Quality Directive’s provisions for the transport sector. The former Directive imposes a biofuel mandate and allows double counting of some biofuels. The latter Directive imposes a Low Carbon Fuel Standard (LCFS). We show that either the biofuel mandate or the LCFS is redundant. Double counting makes the biofuel mandate easier to fulfil but also depresses the price of biofuels. Production of the doubly counted biofuels increases nevertheless and production of the single-counted biofuels falls. Given the type of technical change studied, double counting spurs technical development of the doubly counted biofuels. The LCFS directs support towards those biofuels with lowest life-cycle carbon emissions. The redundant policy instrument, the biofuel mandate or the LCFS, only creates costs but no benefits and should be abolished. Double counting makes the biofuel mandate non-cost-efficient and should be reconsidered. |
| Keywords: | Biofuel mandate; Low carbon fuel standard; Double counting; Technical change; European energy legislation |
| JEL: | D61 H21 H23 |
| Date: | 2014–10–24 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ctswps:2014_019&r=env |
| By: | Aldy, Joseph E. (Harvard University); Pizer, William A. (Duke University) |
| Abstract: | The comparability of domestic actions to mitigate global climate change has important implications for the stability, equity, and efficiency of international climate agreements. We examine a variety of metrics that could be used to evaluate countries' climate change mitigation effort and illustrate their potential application for large developed and developing countries. We also explain how transparent measures of the comparability of effort can contribute to the design of international and domestic climate change policy along several dimensions. For example, such measures can facilitate participation and compliance in an agreement if they can illustrate that all parties are doing their "fair share." Second, these measures can inform the bilateral linking of domestic cap-and-trade programs in a manner akin to how nations negotiate the lowering of trade barriers more generally in trade policy. Third, assessments of the comparability of effort can affect whether to implement and, if necessary, the stringency of unilateral border measures (e.g., a border tax). Finally, such assessments demonstrate the need for a well-functioning policy surveillance regime. |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:harjfk:rwp14-006&r=env |
| By: | Juan Fernando Vargas; Leopoldo Fergusson; Dario Romero |
| Abstract: | Despite a growing body of literature on how environmental degradation can fuel civil war, the reverse effect, namely that of conflict on environmental outcomes, is relatively understudied. From a theoretical point of view this effect is ambiguous, with some forces pointing to pressures for environmental degradation and some pointing in the opposite direction. Hence, the overall effect of conflict on the environment is an empirical question. We study this relationship in the case of Colombia. We combine a detailed satellite-based longitudinal dataset on forest cover across municipalities over the period 1990-2010 with a comprehensive panel of conflict-related violent actions by paramilitary militias. We first provide evidence that paramilitary activity significantly reduces the share of forest cover in a panel specification that includes municipal and time fixed effects. Then we confirm these findings by taking advantage of a quasi-experiment that provides us with an exogenous source of variation for the expansion of the paramilitary. Using the distance to the region of Urabá, the epicenter of such expansion, we instrument paramilitary activity in each cross-section for which data on forest cover is available. As a falsification exercise, we show that the instrument ceases to be relevant after the paramilitaries largely demobilized following peace negotiations with the government. Further, after the demobilization the deforestation effect of the paramilitaries disappears. We explore a number of potential mechanisms that may explain the conflict-driven deforestation, and show evidence suggesting that paramilitary violence generates large outflows of people in order to secure areas for growing illegal crops, exploit mineral resources, and engage in extensive agriculture. In turn, these activities are associated with deforestation. |
| Keywords: | Deforestation, Conflict, Instrumental Variables, Colombia |
| JEL: | D74 Q2 |
| Date: | 2014–09–05 |
| URL: | http://d.repec.org/n?u=RePEc:col:000092:012158&r=env |
| By: | Hidemichi Fujii (Graduate School of Fisheries Science and Environmental Studies, Nagasaki University); Jing Cao (Tsinghua University); Shunsuke Managi (Graduate School of Environmental Studies, Tohoku University) |
| Abstract: | The objective of this study is to calculate and decompose productivity incorporating multi-environmental pollutants in Chinese industrial sectors from 1992 to 2008. We apply a weighted Russell directional distance model to calculate productivity from both the economic and environmental performance. Main findings are, 1) Chinese industrial sectors increased productivity, with the main contributing factors being labor saving prior to 2000. 2) The main contributing factors for productivity growth in coastal areas include both economic and environmental performance improvement. While central and west regions improved productivity due to economic development, they have a trade-off relationship between economic and environmental performance. |
| JEL: | O47 Q53 Q56 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:kch:wpaper:sdes-2014-9&r=env |
| By: | Kohei Matsumoto (Student of Graduate School of Business Administration, Kobe University); Michiyuki Yagi (Interfaculty Initiative in the Social Science, Kobe University); Katsuhiko Kokubu (Graduate School of Business Administration, Kobe University) |
| Abstract: | Following the publication of the Report of the World Commission on Environment and Development in 1987, many managers, researchers, and investors have questioned how and why companies should address environmental and social concerns. This article empirically investigates how environmental and social policies strengthen organizational capabilities, and how organizational capabilities subsequently affect competitive benefits. In the energy and utilities industry, we found that social policies have significant positive relations with investments in one particular organizational capability. In the manufacturing and non-manufacturing industries, however, we could not find significant positive relations between environmental and social policies and investments in organizational capabilities, indicating that managers are not implementing these policies in a way that strengthens organizational capabilities. We also found that the pathways that connect organizational capabilities and competitive benefits differ across industries. This study suggests that managers should consider industry characteristics carefully while investing in organizational capabilities in order to make effective use of these investments. |
| Keywords: | environmental policy, social policy, organizational capability, competitive benefits |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:kbb:dpaper:2014-29&r=env |
| By: | Surender Kumar (Department of Business Economics, University of Delhi); Hidemichi Fujii (Faculty of Environmental Studies, Nagasaki University); Shunsuke Managi (Graduate School of Environmental Studies, Tohoku University) |
| Keywords: | Fossil fuels, Renewable energy, Morishima elasticity of substitution, Directional distance function, shadow price of CO2, OECD countries |
| JEL: | L60 Q20 Q42 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:kch:wpaper:sdes-2014-8&r=env |
| By: | Halkos, George; Papageorgiou, George |
| Abstract: | In this paper we model the conflict between the group of polluting firms of a country and the social planer of the same country which attempts to control the volume of emissions generated during the production process. Both players of the game have their own control policies which are the rate of emissions on behalf the polluting firms and the rate of pollution control (e.g. abatement or taxation) on behalf the home country. The common state variable of the model is the number of the polluting firms, which is better to minimized through the country’s control policy, but beneficial to maximized on the polluters’ side. From the game theoretic point of view the model setup is very simple and belongs in to the special class of differential games also called state separable differential games. An important property for these games is that the open-loop Nash equilibrium coincides with the Markovian (closed-loop) equilibrium and in the case of hierarchical moves the analytical solutions are easy obtained. The game proposed here is analyzed for both types of equilibrium, i.e. Nash and Stackelberg. In the simultaneous move game (i.e. the Nash game) we find the equilibrium analytical expressions of the controls for both players as well as the steady state stock of the polluting firms. A sensitivity analysis of the crucial variables of the model takes place. In the hierarchical move game (i.e. the Stackelberg game) we find the equilibrium values of the controls as well as of the state variable. As a result a comparison between the two types of equilibrium for the game takes place. The analysis of the comparison reveals that the conflict is more intensive (since both controls have greater values) for the case in which the polluting firms play as the leader of the hierarchical move game. |
| Keywords: | Pollution control; Environmental Economics; Differential games. |
| JEL: | C61 C62 D43 H21 Q50 Q52 Q53 |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:58947&r=env |
| By: | Elisa (Fondazione Eni Enrico Mattei (FEEM) and Euro-Mediterranean Center on Climate Change, Venice, Italy) |
| Abstract: | The years-long negotiations on an international mechanism for loss and damage (L&D) associated with climate change impacts got to a milestone during the nineteenth session of the UNFCCC Conference of the Parties (COP-19), held in Warsaw in November 2013. The COP established the Warsaw international mechanism, aiming to address L&D associated with the adverse effects of climate change, including extreme events and slow onset events, in vulnerable developing countries (Decision 2/CP.19). The paper performs a Critical Discourse Analysis (CDA) of COP decision 2/CP.19 in order to evaluate its content and reflect on how the mechanism will be implemented. The analysis builds on Fairclough’s (1992) three-dimensional model for CDA, and makes use of a wide range of materials including previous COP decisions, High Level Segment statements and Parties submissions to COP 19, press releases and other relevant documents. The analysis highlights the lack of a common understanding and representation of L&D by developed and developing countries, with this fact ultimately hampering the possibility to define actual tools to address the issue within the mechanism The difficulty to come to a shared meaning on L&D is due to its connection to other controversial discourses under the UNFCCC: those of attribution, liability and compensation. |
| JEL: | F13 F18 F51 K33 Q37 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2014.84&r=env |
| By: | Deng-Shing Huang (Institute of Economics, Academia Sinica, Taipei, Taiwan); Yo-Yi Huang (Institute of Applied Economics, National Taiwan Ocean University, Taiwan) |
| Abstract: | This paper establishes an ecotourism model to analyze the role of local residents and government in achieving sustainable development. By incorporating into the model the properties of common-pool resources to which the tourism activities are linked, we prove that ecotourism cannot guarantee sustainable development for a rural area unless it is accompanied by suitable policies to reduce firms numbers and/or a tourist tax. More specifically, we find two stable equilibra: one characterized by low or even a zero level of natural resources, and the other a high level. In the low equilibrium, extinction or zero stock of natural resources occurs under open access to zero transport cost and marginal environmental maintenance cost. The high equilibrium corresponds to higher social welfare, and that can be assured by policies of a tourist tax, license fee, limiting the number of firms and restriction on the population of potential tourists. More importantly, we prove that although the high equilibrium is better than low equilibrium, it may not be optimal. The optimum welfare can only be achieved by a direct tax on tourists, not solely by policies controlling the number of firms. JEL Classification-JEL: Q01, Q57, L83 |
| Keywords: | Ecotourism, Common-pool Resources, Sustainable Development, Tragedy of Commons |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:sin:wpaper:14-a013&r=env |
| By: | Adler Mandelbaum, Sara E |
| Abstract: | Many natural resources and common-pool resources have inherent thresholds regarding the onset of deleterious environmental impacts or consequences. Group and individual behavior were examined in an experimental setting using three distinct games designed to model common-pools in which there existed such a threshold: one with complete information of the threshold, one with incomplete information of the threshold and one with sporadically enforced targets. By design the true threshold was unknown to the players in the role of policymaker, and the guesses of the threshold value were allowed to change during every round. Sporadically enforced targets had a significant negative effect on the lifespan of a common-pool resource and individual gains. Allowing the participants to develop and act on their own beliefs for the location of the threshold improved both individual benefit and conservation of the common-pool. Conservation of common-pool resources will be best achieved by policies which allow users of the resource access to reliable information regarding the status of the common-pool and which enable the development of their own beliefs regarding the location of threshold. |
| Keywords: | Common-Pool Resources, Threshold, Unenforced Policies |
| JEL: | C92 H41 P48 Q38 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:59120&r=env |
| By: | Esther Regnier (Centre d'Economie de la Sorbonne - Paris School of Economics); Michel De Lara (CERMICS - Université Paris-Est) |
| Abstract: | The World Summit on Sustainable Development (Johannesburg, 2002) encouraged the adoption of an ecosystem approach. In this perspective, we propose a theoretical management framework that deals jointly with three issues: i) ecosystem dynamics, ii) conflicting issues of production and preservation and iii) robustness with respect to dynamics uncertainties. We consider a discrete-time two-species dynamic model, where states are biomasses, and where two controls act as harvesting efforts of each species. Uncertainties take the form of disturbance affecting each species growth factors, and are assumed to take their values in a known given set. We define the robust viability kernel as the set of initial species biomasses such that at least one harvesting strategy guarantees minimal production and preservation levels for all times, whatever the uncertainties. We apply our approach to the anchovy-hake couple in the Peruvian upwelling ecosystem. We find that accounting for uncertainty sensibly shrinks the deterministic viability kernel (without uncertainties). We comment on the management implications of comparing robust viability kernels (with uncertainties) and the deterministic one (without uncertainties). |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:13006r&r=env |
| By: | Agneta Forslund (Département Sciences Sociales, Agriculture et Alimentation, Espace et Environnement, INRA); Fabrice Levert (Structures et Marchés Agricoles, Ressources et Territoires); Alexandre Gohin (Structures et Marchés Agricoles, Ressources et Territoires, INRA); Chantal Le Mouel (Structures et Marchés Agricoles, Ressources et Territoires, INRA) |
| Abstract: | Cette étude, financée par l'ADEME et dont le Comité de Pilotage était constitué de l’ADEME, de l’INRA et des Ministères en charge de l’Environnement et de l’Agriculture,analyse l’évolution des usages des sols, les changements d'allocation des sols et les émissions de gaz à effet de serre engendrés par le développement de quatre cultures utilisées à la fois pour des besoins alimentaires et pour la production de biocarburants (colza, tournesol, blé betterave) sur le territoire national sur les périodes 1992-2004 et 2006-2010. L’analyse montre qu'il y a eu relativement peu d’impacts de l’évolution des surfaces de ces cultures sur les usages non agricoles (urbain, naturel, boisé). La progression des surfaces de ces quatre cultures a eu un impact principalement limité aux terres agricoles, à travers une redistribution des cultures hors jachère, une reprise sur les terres mises en jachère en 1992 ainsi que des conversions de prairies vers les terres arables. L’ampleur de ces trois types de changements d’occupation des sols varie cependant selon la culture considérée. Au vu du bilan global sur l'évolution des changements d'allocation des sols, la conversion des prairies en terres arables reste l'élément le plus important du développement des biocarburants en France. Le retournement des prairies au profit des cultures a des effets environnementaux à la fois en termes d'émissions de GES, de perte de biodiversité et de pollution de l'eau. Ces effets indirects doivent être pris en compte dans le bilan environnemental du développement des biocarburants. |
| Keywords: | biocarburant, marché agricolefrancegrande culture |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:inr:wpaper:190145&r=env |
| By: | Bachev, Hrabrin |
| Abstract: | This paper presents the results of a first large-scale study on forms, factors, and efficiency of eco-management in Bulgarian farms with a high eco-activity. First, a brief characterisation of surveyed “eco-active†farms is made. After that, diverse (internal, private, contract, market, formal, informal, hybrid etc.) forms and the scope of eco-management in agricultural farms are analysed. Next, different (ideological, economic, market, social etc.) factors of eco-management in farms are specified. After that, analysis is made on costs, effects, efficiency and perspectives of eco-management in agricultural farms. Finally, conclusions from the study are summarised. |
| Keywords: | environmental management, agriculture, agro-eco-management, Bulgaria, forms, factors, efficiency |
| JEL: | Q12 Q18 Q2 Q20 Q3 Q30 |
| Date: | 2014–08–31 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:58664&r=env |
| By: | Elofsson, Katarina (Department of Economics, Swedish University of Agricultural Sciences) |
| Abstract: | This paper analyzes the implications of international knowledge diffusion for the costs of Baltic-wide policy to reduce nutrient emissions to the Baltic Sea. In particular, the impact on the distribution of abatement and costs over time and space is investigated, and the relative importance of knowledge spillovers between countries and nutrient spillovers between marine basins is examined. Using a spatial and dynamic cost-effectiveness model over the Baltic Sea drainage basin, it is shown that theoretically, the presence of knowledge spillovers could imply that abatement can be cost-effective even if the cost is comparatively high and the impact on water quality is zero. The empirical simulations show that a more likely outcome is that higher knowledge dispersal leads to a further concentration of abatement to countries with large, low-cost abatement opportunities. |
| Keywords: | Baltic Sea; knowledge spillovers; learning rate; nitrogen. |
| JEL: | Q52 Q53 Q55 |
| Date: | 2014–09–26 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:slueko:2014_006&r=env |
| By: | Oksana Arshynnikova (Student of Graduate School of Business Administration, Kobe University); Michiyuki Yagi (Interfaculty Initiative in the Social Sciences, Kobe university); Katsuhiko Kokubu (Graduate School of Business Administration, Kobe University) |
| Abstract: | Existing literature focusing on the impact of corporate sustainable responsibility (CSR) on employees can be broadly divided into two streams. One stream focuses on how CSR affects potential employees, suggesting that it contributes to increasing the attractiveness of a company by creating a good reputation for it. The other stream focuses on the impact of CSR on current employees, suggesting that CSR, including environmentally responsible behavior, positively influences corporate reputation and, in turn, employee commitment. The study empirically investigates the role of CSR in its three dimensions - environmental, social, and governance in retaining employees at an organizational level (i.e., employee turnover). This study uses a global firm-level dataset of 632 observations for 2005-2013 from Bloomberg Professional Service, regressing employee turnover on CSR activities in manufacturing, non-manufacturing, and energy and utilities industries. The results indicate that activities in the environmental dimension do not signifi-cantly affect the retention of employees. In the social dimension, CSR training has a significant effect on retaining employees in all industries, but is not robust in each of the three industries. In the governance dimension, few governance activities affect employee retention in the manufacturing and energy and utilities industries, although some governance policies (such as the percentage of women on the board of directors) reduce employee turnover rate in the non-manufacturing industry. This difference appears to be due to industry characteristics regarding the extent of fluidity of the labor market. |
| Keywords: | CSR, ESG initiatives, CSR training, employee turnover, global firms |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:kbb:dpaper:2014-32&r=env |
| By: | Prudence Dato (IREGE/ University of Savoie) |
| Abstract: | In a context of high disposal costs in rich countries together with an imperfect monitoring system, the non reusable part of e-wastes is often illegally mixed with the reusable part and ends up in developing countries leading to an `environmental injustice' and important negative externalities. To tackle this problem, we propose an alternative e-waste market for a joint trade in reusable and non-reusable e-wastes, other than the monitoring system and we analyze the optimal mechanism design for its implementation. In this paper, we use the theory of incentives applied to e-waste market. We want to show how to induce firms in North to undertake sorting investment that would help implementing the alternative e-waste market. Results show that, if the sorting cost is low, the optimal contract to induce sorting investment and to implement the alternative e-waste market for a joint trade in reusable and non-reusable e-wastes is the Baron-Myerson (BM) contract. Moreover, we iden tify conditions to avoid the standard market. Finally, we construct the optimal decisions of the firm in South over the set of sorting costs. One of the direct implications of the results is that if the cost is not too high to deter the sorting investment, the firm in South should give incentives to the firm in North to invest in sorting so that the alternative market can easily be implemented. |
| Keywords: | E-waste, Imperfect information, International trade, Market. |
| JEL: | Q53 L51 D82 F18 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2014.13&r=env |
| By: | Victoria Shestalova; Chiara Criscuolo; Nick Johnstone; Carlo Menon |
| Abstract: | This study assesses the role of feed-in tariffs (FITs) and renewable energy certificates (RECs) in creating incentives for cross-border investments and for investments in particular technological portfolios via M&A. The analysis explores the dataset on M&As in alternative energy sources worldwide over 2005‑2011. The results suggests that FITs encourage more diversified M&A than RECs. With respect to foreign investment, the study finds a linear relationship between FITs and cross-border M&As in the wind energy sector, but an inverted U-shaped relationship in the solar energy sector. One possible explanation for the latter may lie in reduced policy credibility due to the public finance implications of ‘generous’ FITs. Another possible explanation for this finding concerns the use of high solar FITs by countries whose natural conditions provide little comparative advantage in solar energy, suggesting that low profitability and limited potential of solar energy in those countries might have deterred the entry of foreign investors. |
| JEL: | G34 Q42 Q48 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:cpb:discus:288&r=env |
| By: | Lorenzo Carrera (Fondazione Eni Enrico Mattei, Ca’ Foscari University of Venice and Euro-Mediterranean Centre on Climate Change); Gabriele Standardi (Fondazione Eni Enrico Mattei and Euro-Mediterranean Centre on Climate Change); Francesco Bosello (Fondazione Eni Enrico Mattei, Euro-Mediterranean Centre Climate Change and University of Milan); Jaroslav Mysiak (Fondazione Eni Enrico Mattei and Euro-Mediterranean Centre on Climate Change) |
| Abstract: | In this paper we developed and tested an integrated methodology for assessing direct and indirect economic impacts of flooding. The methodology combines a spatial analysis of damage to physical stocks with a general economic equilibrium approach using a regionally-calibrated (to Italy) version of a Computable General Equilibrium (CGE) global model. We applied the model to the 2000 Po river flood. To account for the uncertainty in the induced effects on regional economies, we explored three disruption and two recovery scenarios. The results prove that: i) indirect losses are a significant share of direct losses, and ii) the model is able to capture both positive and negative economic effects of a disaster in different areas of the same country. The assessment of indirect impacts is essential for a full understanding of the economic outcomes of natural disasters. |
| Keywords: | Flood Risk, Indirect Impacts, Computable General Equilibrium, Natural Disasters |
| JEL: | Q5 Q54 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2014.82&r=env |
| By: | Julien Farlin (CRP Henri Tudor, CRTE (Luxembourg)); Laurent Drouet (Fondazione Eni Enrico Mattei); T. Gallé (CRP Henri Tudor, CRTE (Luxembourg)); D. Pittois (CRP Henri Tudor, CRTE (Luxembourg)); M. Bayerle (CRP Henri Tudor, CRTE (Luxembourg)); C. Braun (CRP Henri Tudor, CRTE (Luxembourg)); P. Maloszewski (Helmholtz Zentrum, Institute for Groundwater Ecology, Munich (Germany)); J. Vanderborght (Helmholtz Zentrum, Institute of Bio-and Geosciences, Jülich (Germany)); M. Elsner (Helmholtz Zentrum, Institute for Groundwater Ecology, Munich (Germany)); A. Kies (University of Luxembourg) |
| Abstract: | A simple method to delineate the recharge areas of a series of springs draining a fractured aquifer is presented. Instead of solving the flow and transport equations, the delineation is reformulated as a mass balance problem assigning arable land in proportion to the pesticide mass discharged annually in a spring at minimum total transport cost. The approach was applied to the Luxembourg Sandstone, a fractured-rock aquifer supplying half of the drinking water for Luxembourg, using the herbicide atrazine. Predictions of the recharge areas were most robust in situations of strong competition by neighbouring springs while the catchment boundaries for isolated springs were extremely sensitive to the parameter controlling flow direction. Validation using a different pesticide showed the best agreement with the simplest model used, whereas using historical crop-rotation data and spatially distributed soil-leaching data did not improve predictions. The whole approach presents the advantage of integrating objectively information on land use and pesticide concentration in spring water into the delineation of groundwater recharge zones in a fractured-rock aquifer. |
| Keywords: | Spring Protection Zones, Atrazine, Luxembourg, Fractured Rock, Groundwater Pollution |
| JEL: | Q5 Q53 |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2014.76&r=env |
| By: | Christophe Charlier (Université Nice Sophia Antipolis and GREDEG/CNRS); Sarah Guillou (OFCE - Sciences-Po Paris, GREDEG/CNRS and SKEMA Business School) |
| Abstract: | The China - Raw Materials dispute recently arbitrated by the WTO opposed China as defendant to the US, the EU and Mexico as claimants on the somewhat unusual issue of export restrictions on natural resources. For the claimants, Chinese export restrictions on various raw materials, of which the country is a major producer, create shortages in foreign markets increasing the prices of these goods. China defends export limitations by presenting them as a natural resource conserving policy. This paper offers a theoretical analysis of the dispute with the help of a model of a monopoly extracting a non-renewable resource and selling it on both the domestic and foreign markets. The theoretical results focus on the effects of imposing an export quota on quantities, prices and price distortion. Given the crucial importance of demand elasticity in this theoretical understanding of the conflict, the empirical part of the paper provides estimates of import demand elasticity of the parties for each product concerned in the case. The model and the empirical results challenge the ideas that an export quota always favours conservation of natural resource, that a higher foreign price necessarily follows this policy and that it inherently increases price distortion and therefore discrimination. |
| Keywords: | Export Restrictions, WTO, Exhaustible Natural Resources, Price Discrimination, Article XX of the GATT 1994 |
| JEL: | F13 F18 F51 K33 Q37 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2014.83&r=env |
| By: | Asian Development Bank (ADB); (Regional and Sustainable Development Department, ADB); ; |
| Abstract: | Civil society organizations, including nongovernment organizations (NGOs), are important stakeholders of the Asian Development Bank (ADB). This report is a compilation of ADB’s engagement with civil society organizations, including NGOs, at the policy and strategy, country and regional programing, and project operations. ADB’s NGO and Civil Society Center, ADB focal points throughout the Bank, and the institution as one entity, seek to strengthen cooperation with civil society in the understanding that engagement of all stakeholders can further increase and boost development effectiveness. |
| Keywords: | Cooperation, civil society, biennial report, good governance, human rights, environmental sustainability, community-based organizations, social movements, labor unions, CSO |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:asd:wpaper:rpt146284&r=env |
| By: | Brett W. Jordan (Division of Economics and Business, Colorado School of Mines); Rod Eggert (Division of Economics and Business, Colorado School of Mines); Brent Dixon (Idaho National Laboratory); Brett Carlsen (Idaho National Laboratory) |
| Abstract: | Recently, interest in thorium's potential use in a nuclear fuel cycle has been renewed. Thorium is more abundant, at least on average, than uranium in the earth's crust and, therefore, could theoretically extend the use of nuclear energy technology beyond the economic limits of uranium resources. This paper provides an economic assessment of thorium availability by creating cumulative-availability and potential mining-industry cost curves, based on known thorium resources. These tools provide two perspectives on the economic availability of thorium. In the long term, physical quantities of thorium likely will not be a constraint on the development of a thorium fuel cycle. In the medium term, however, thorium supply may be limited by constraints associated with its production as a by-product of rare earth elements and heavy mineral sands. Environmental concerns, social issues, regulation, and technology also present issues for the medium and long term supply of thorium. |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:mns:wpaper:wp201407&r=env |
| By: | Quatraro, Francesco; Vivarelli, Marco |
| Abstract: | The aim of this paper is to provide an updated survey of the"state of the art"in entrepreneurial studies with a particular focus on developing countries (DCs). In particular, the concept of"entrepreneurship"is critically discussed, followed by a discussion of the institutional, macroeconomic, and microeconomic conditions that affect the entry of new firms and the post-entry performance of newborn firms. The reviewed literature bears some policy implications for the support of the creation new firms, such as the targeting of policy measures to prospective entrepreneurs who possess high education levels, long previous job experience, and innovative skills. Specifically, for DCs, tailored subsidies and support should be coupled with framework and infrastructural policies that are able to improve the business environment such that new ventures can start and grow. |
| Keywords: | Microfinance,Environmental Economics&Policies,Access to Finance,Small Scale Enterprise,Banks&Banking Reform |
| Date: | 2014–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7074&r=env |
| By: | Sophie Bernard; Arthur Claire; Guillaume Vergne; Thierry Warin |
| Abstract: | Ce document de travail propose un état des lieux sur le commerce international des déchets. Il expose l’évolution et la composition des flux et présente les grands acteurs du commerce international. Il discute ensuite de la convention de Bâle, du havre de la pollution et du commerce illégal des déchets. Ce travail repose partiellement sur Bernard et al. (2012) qui se concentre, en particulier, sur le contexte français. |
| Date: | 2014–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirtra:2014dt-01&r=env |
| By: | Thomas Dietz (University of Muenster - Institute of Political Science & ZenTra); Jennie Auffenberg (University of Bremen - Institute for Commercial Law & ZenTra) |
| Abstract: | What are the conditions under which private, voluntary certification programs like the Rainforest Alliance or Fairtrade can successfully promote environmental and social standards? We propose that the efficacy of a certification program depends on three variables: its sustainability standards, enforcement mechanisms and its market proliferation. The stricter the standards, the better the enforcement systems and the bigger the market share, the higher will be the factual impact of a particular certification program. We develop an index to systematically compare the strengths of norms and enforcement systems across a selection of important certification schemes in the global coffee industry and collect data about their market shares. We use a qualitative comparative analysis (QCA) to analyze these data. Our results show: certification schemes with strict standards and enforcement systems possess only insignificant market shares. Certification schemes with more significant market shares have either loose standards and/or ineffective enforcement systems. We develop a governance costs approach to explain these findings. Stricter standards and enforcement systems lead to an increase of production costs. The extents to which these costs can be shifted to the market are limited. Certification schemes therefore have incentives to reduce these costs in order to increase their market shares. The results confirm that the capacity of voluntary governance schemes is systematically restricted. |
| Keywords: | corporate social responsibility, sustainability, global value chains, transnational regulation, qualitative comparative analysis |
| JEL: | J50 K33 L51 M14 Q20 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:zen:wpaper:39&r=env |
| By: | Matthieu BOUSSICHAS (Ferdi); Vincent NOSSEK (Ferdi) |
| Abstract: | Ce document propose une comparaison statistique des objectifs du développement durable (ODD) et de leurs principales cibles dans les PMA, les autres pays vulnérables et les autres pays en développement. Il se base sur les ODD proposés le 19 juillet 2014 par le Groupe de travail ouvert de l’Assemblée générale des Nations Unies sur les objectifs de développement durable. Alors que le nouvel agenda post-2015 sera universel, la grande hétérogénéité des pays pose la question de la différenciation de l’agenda en fonction des spécificités, notamment celles des pays vulnérables. Un élément de réponse tient dans l’identification de ces spécificités pour les objectifs et cibles proposés. Ce document compare ainsi les Pays les Moins Avancés (PMA), les Pays en Développement Sans Littoral (PDSL) et les Petits Etats Insulaires en Développement (PEID) aux pays en développement hors-PMA ou aux pays à revenu intermédiaires (PRI) selon la disponibilité des données. Ce travail s’inscrit dans la continuité du document de travail P77 de la Ferdi (Boussichas, Coudert, & Gillot, 2013) qui établit un bilan factuel par OMD (objectifs du Millénaire pour le développement) pour les pays vulnérables et compare les résultats obtenus par chaque catégorie à ceux des pays en développement hors-PMA. A l’instar de ce que le bilan des OMD permet d’observer, il apparaît que, globalement, les pays vulnérables et en particulier les PMA se distinguent par un retard significatif sur la majorité des nouveaux objectifs et cibles de l’agenda post-2015. La crainte qu’un élargissement de l’agenda du développement au développement durable ne dilue à l’avenir la priorité donnée jusqu’à maintenant à ces pays ne peut être alimentée par les statistiques tant les besoins des pays vulnérables en matière de développement durable apparaissent globalement plus importants que ceux des autres catégories de pays. Afin de prendre en compte les niveaux initiaux des pays dans l’évaluation des progrès, ce travail introduit, lorsque cela est possible et pertinent, une évaluation non linéaire des progrès constatés depuis 2000 sur les possibles futurs objectifs. Ainsi, bien que leurs niveaux d’éducation et de santé restent plus faibles, la performance des PMA dans ces deux secteurs s’avère relativement meilleure que celle des autres PED. Le même constat peut être fait pour l’utilisation d’énergies alternatives et renouvelables. En revanche, les progrès des PMA sont décevants en matière de lutte contre la pauvreté et la malnutrition au regard de ce qu’a été la performance des autres PED. Ces résultats montrent deux choses : 1/ L’approche OMD a probablement permis aux PMA de rattraper en partie (mais en partie seulement) leur retard en matière de capital humain. Ce constat encourageant milite pour une différenciation renouvelée à leur égard, notamment dans les efforts spécifiques de la communauté internationale dont ils bénéficient ; 2/ Les PMA se distinguant cependant par une mauvaise performance en matière de pauvreté et de malnutrition, il est important de considérer spécifiquement ces pays sur l’ensemble des facteurs concourant à cette mauvaise performance. Nombre de ces facteurs sont précisément parmi ceux nouvellement pris en compte dans l’agenda post-2015. Or, les PMA accusent un retard significatif pour la plupart de ces facteurs. Afin de rééditer pour les autres facteurs du développement la relative bonne performance des PMA en matière de capital humain, les pays vulnérables doivent continuer à bénéficier d’un support particulier de la communauté internationale. |
| JEL: | F35 I32 I38 O11 E61 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:fdi:wpaper:1833&r=env |
| By: | NU. CEPAL. Subsede de México |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col031:37134&r=env |