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on Environmental Economics |
| By: | Ryan, Mary; O'Donoghue, Cathal; Upton, Vincent |
| Abstract: | The role of forests in our environment is increasing in importance due to the multifunctional benefits forests provide in relation to climate change mitigation, water conservation and provision of fibre for bioenergy. However, afforestation targets across Europe are not being met. Using Ireland as a case study, we investigate why farm afforestation rates are falling, despite the availability of generous subsidies. We use a novel technique to examine the afforestation participation decision using a life cycle choice framework where we apply revealed choice methodology to afforestation for the first time. We find that the model coefficients coincide with expected economic theory relative to the utility maximisation of income, leisure and wealth (long term land value). However, we observe a cohort of farmers who do not plant forestry regardless of income derived, reflecting their preference to maintain the flexibility of the long term value of their land by continuing to farm. |
| Keywords: | Afforestation decision, life-cycle analysis, Land Economics/Use, C5, D1, 013., |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:212285&r=env |
| By: | Dirk Schoenmaker; Rens van Tilburg |
| Abstract: | THE ISSUE Real economic imbalances can lead to financial crisis. The current unsustainable use of our environment is such an imbalance. Financial shocks can be triggered by either intensified environmental policies, cleantech breakthroughs (both resulting in the stranding of unsustainable assets), or the economic costs of crossing ecological boundaries (eg floods and droughts due to climate change). Financial supervisors and risk managers have so far paid little attention to this ecological dimension, allowing systemic financial imbalances resulting from ecological pressures to build up. Inattention also leads to missed economic and financial opportunities from the sustainability transition. Policy Challenge To address the risk, financial institutions should measure their exposure to ecological imbalances using methodologies such as carbon and natural capital accounting. The European Union should develop and implement standards for this. Financial supervisors require financial institutions to conduct risk analysis on the basis of these exposures (stress tests). A Finance and Sustainability Risk Forum could develop and promote best practices in this field. To grasp the opportunities of green finance, financial institutions should move to long-term investing with active ownership. The European Commission and member states could create the conditions for financing the transition to a sustainable economy through an EU Green Capital Markets Plan. Transition pathways to stay within a 2°C global temperature rise Source - IPCC (2014). For references and footnotes, please download the PDF version of this Policy Brief. We face large and growing ecological imbalances. The overuse of the environment as a sink for greenhouse-gas emissions and pollution and over-exploitation of water and raw materials have led to climate change, depletion of natural resources and loss of biodiversity. The development of these ecological imbalances is partly linear and thus predictable, but is partly also highly unpredictable, especially as imbalances become larger, with sudden tipping points and feedback loops after which recovery is no longer possible (IPCC, 2014). A set of nine planetary boundaries has been identified within which there is a “safe operating space for humanity” (Rockström et al, 2009). Three boundaries have already been passed (climate change, biodiversity and the nitrogen cycle) and two are coming close to being passed (ocean acidification and the phosphorus cycle). In the Paris Agreement on climate change, concluded at the end of 2015, countries reconfirmed the target of limiting the rise in global average temperatures relative to those in the pre-industrial world to two degrees Celsius, and to pursue efforts to limit the temperature increase to 1.5°C (UNFCCC, 2015). Doing this would ensure that the stock of carbon dioxide and other greenhouse gases in the atmosphere does not exceed a certain limit. The Intergovernmental Panel on Climate Change (IPCC) estimates that the remaining carbon budget amounts to 900 gigatonnes of CO2 from 2015 onwards. The speed with which the limit is reached depends on the emissions pathway. If current emissions are not drastically cut, the 2°C limit would be reached in less than two decades (Figure 1)1. Figure 1 - Possible carbon emission trajectories Source - UK Prudential Regulation Authority (2015). The risk of late and sudden transition There are many uncertainties about climate change. Will the world succeed in limiting global warming to 1.5-2°C? If so, what will the energy system look like? What role will energy saving, carbon capture and storage and the different forms of renewable energy play? The future of technological innovation is inherently uncertain (Weitzman, 2013) as is the political will globally to address climate change. The technological uncertainties are compounded by policy uncertainty. Policy is also a driver of technological change, for instance through the amount of investment in research, and as a market maker for cleantech. If governments make an early start a ‘soft landing’ is more likely. The transition to a low-carbon economy would be orderly, allowing enough time for the physical capital stock to be replenished and for technological progress so that energy costs are kept at bearable levels (Stern, 2015). However, there is a risk of late adjustment, resulting in a hard landing. In this adverse scenario, the underlying political economy – the short-term political costs of the transition, combined with the need for global coordination of emission cuts – would lead to belated and sudden implementation of constraints on the use of carbon-intensive energy. This back-loaded policy intervention would force more severe immediate reductions in emissions. The economic impact of the energy transition On the economics of climate change, Stern (2008) calculated that starting the transition sooner rather than later is preferable2 – a finding recently confirmed by the Global Commission on the Economy and Climate (2014). |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:bre:polbrf:13952&r=env |
| By: | Witzke, Heinz-Peter; Fellmann, Thomas; Van Doorslaer, Benjamin; Huck, Ingo; Weiss, Franz; Salputra, Guna; Jansson, Torbjorn; Drabik, Dusan; Leip, Adrian |
| Abstract: | According to the European Council's recent agreement on domestic climate and energy goals, greenhouse gas emissions from sectors outside the EU’s Emission Trading Scheme have to be cut by 30% below 2005 levels by 2030. So far no decision has been taken on agriculture's specific involvement in mitigation obligations or on how mitigation targets would be distributed between Member States. Based on hypothetical assumptions, we employ the CAPRI model to illustrate and highlight some potential impacts and challenges related to an integration of the agricultural sector into the new EU climate policy framework. Results of the hypothetical mitigation policy scenario show important impacts on EU agriculture, in particular the livestock sector, if the distribution key of the current Effort Sharing Decision would be rigidly applied as in our assumptions. The results highlight the importance of a targeted but flexible implementation of mitigation policy instruments in the EU and its Member States, as well as the need for a wider consideration and adoption of technological mitigation options. |
| Keywords: | Agribusiness, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211897&r=env |
| By: | Rasetti, Michele; Filho, Joaquim B.S. Ferreira; Finco, Adele; Pena-Levano, Luis M.; Zhao, Xin; Opgrand, Jeffrey |
| Abstract: | For many years, biofuels have been considered a cleaner, greener alternative to fossil fuels in order to reduce greenhouse gas (GHG) emissions in the transportation sector. For this reason, in recent years, many European policies has tried to promote biofuels production and consumption. However, some concerns on the actual sustainability of biofuels have arisen. In particular, scientific studies have pointed out that additional emissions from indirect land-use change (ILUC) could cancel out biofuels benefits on climate change. This paper analyzes the global economic and environmental consequences of an increase in biofuel production, as established by the RE Directive, for the period 2001-2020. The GTAP-BIO general equilibrium model was used for the simulation. The results suggest a total emission of 168 gCO2/MJ per year over 20 years of biodiesel production, which would mean that the GHG reduction requirements established by the policies could not be fulfilled. |
| Keywords: | European biofuel policy, Biodiesel, GTAP-BIO, Land use change, GHG emissions, Environmental Economics and Policy, Land Economics/Use, D58, Q16, Q58, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:212489&r=env |
| By: | Siqueira, Tiago T.S.; Duru, Michel |
| Keywords: | Farm Management, International Development, Land Economics/Use, Livestock Production/Industries, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211936&r=env |
| By: | Karoline Rogge (SPRU – Science Policy Research Unit, University of Sussex, Brighton BN1 9SL, UK; Fraunhofer Institute for Systems and Innovation Research (Fraunhofer ISI), Karlsruhe, Germany) |
| Abstract: | The Paris Climate Agreement calls for decarbonization of the economy in the second half of this century. This requires a radical redirection and acceleration of technological change towards low- and particularly zero-carbon solutions. Global carbon pricing is seen as a key enabler for such decarbonization, with the European Union’s Emission Trading System (EU ETS) serving as an important pillar. In this paper, I therefore re-view the evidence on the innovation impact of the EU ETS. The review shows a very limited effect of the scheme on technological innovation, but there are clear signs of it having stimulated organizational innovation, with the impact being more pronounced for the electricity sector than for industry. The initially high expectations of the EU ETS regarding technological innovation largely dissipated once the scheme’s lack of strin-gency became apparent and prices collapsed accordingly. Also, for many of the rather incremental innovations that have taken place, the EU ETS was shown to be only one contributing factor among others, with the broader policy mix and long-term targets playing a particularly pivotal role in stimulating innovation. In contrast, there is clear evidence that the EU ETS has been a key driver of various organizational innovations, including making climate change a top management issue. However, so far, these or-ganizational innovations have only had limited effects on shifting corporate strategies towards low-carbon solutions because of low carbon prices, the relatively high share of free allocations in industry, and more pressing business concerns. Despite this, the scheme’s positive impact on organizational innovations should not be underestimated, as these constitute a necessary precondition for future technological innovations. The findings suggest that the Commission’s proposal for the fourth trading period of the EU ETS points in the right direction, but further efforts will be needed to significantly in-crease the scarcity of EU allowances and the share of auctioning in order to fully un-leash the scheme’s transformative power. If the identified shortcomings are not ad-dressed, the EU ETS cannot play its foreseen role in guiding the decarbonization of the European economy, for which innovations in low-carbon solutions are a fundamental requirement. |
| Keywords: | climate policy, emission trading, EU ETS, innovation |
| JEL: | O31 O38 Q54 Q55 Q58 |
| Date: | 2016–09 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2016-09&r=env |
| By: | Siegmeier, Jan |
| Abstract: | Long-lived public infrastructure (for example roads) complements private goods (cars) and may perpetuate carbon-intensive demand patterns and technologies far into the future. Thus, climate policy must combine `direct' instruments such as carbon taxation with public investment shifts (from roads towards rails or bicycle paths). This is particularly important and complex because infrastructure supply changes slowly and carbon taxation may be politically constrained: This paper shows that if carbon taxation is non-optimal, infrastructure provision should be used to actively change private behavior. Nevertheless, if one instrument is restricted, the other may also have to be less ambitious: Intuitively, if clean infrastructure provision is non-optimal, polluting should also be penalized less (and vice versa), unless welfare gains from environmental quality are large. More precisely, for two public goods complementing private goods in utility, general second-best policy conditions are derived and applied to a specific utility function. Constrained public spending composition leaves the (Pigouvian) tax rule unchanged, but constrained taxation implies that the environmental externality enters the condition for public spending composition. Nevertheless, the second-best level of either policy instrument is below its first-best when `dirty' consumption is sufficiently important in utility. |
| Keywords: | infrastructure, public spending, carbon price, environmental tax, second-best, transport |
| JEL: | H23 H41 H54 R48 |
| Date: | 2015–12–31 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:69046&r=env |
| By: | Zhang, Wei; Kato, Edward; Bhandary, Prapti; Nkonya, Ephraim; Ibrahim, Hassan Ishaq; Agbonlahor, Mure; Ibrahim, Hussaini Yusuf |
| Abstract: | This research has been undertaken to improve our understanding of stakeholders’ knowledge and perception about ecosystem services (ES), which provides a valuable means of gaining insight into the opportunities and constraints that face ES management in a multiuser landscape. Land use preferences are influenced by a variety of motives, attitudes, and values intrinsic to every individual’s decisionmaking. Knowledge can affect attitudes and behavioral intentions, and a positive attitude toward the environment has been found to predict conservation practices. Using primary data collected from a village survey of 102 villages in Nigeria between November 2012 and February 2013, this study assesses local communities’ awareness, perceptions, and knowledge of a broad range of ES and examines the key factors that explain the variations in the level of awareness across communities, with a special focus on land uses within landscapes. We found that exposure to forest and lowland floodplains was positively correlated with people’s level of awareness of ES, highlighting the importance of direct experience and local context in shaping people’s perceptions toward ES. Such considerations should be taken into account when designing policies aimed at addressing natural resources and environmental management issues. While provisioning services were generally well recognized, consistent with findings of previous studies, a majority of the sampled villages also appreciated spiritual values as a cultural service. Communities’ awareness and knowledge about regulating and supporting ES were generally very low, including those services that are important for maintaining the stability and productivity of agroecosystems (for example, pollination and biological pest control), warranting a greater role for agricultural extension to play in influencing community levels of awareness of ES in Nigeria. Furthermore, incorporating new concepts and topics about ES into the primary school curriculum will better educate people about the importance of ES. Finally, our assessment of communities’ attitudes toward payments for environmental services suggests a need to respect local communities’ preferences, norms, and traditions when designing policies that encourage natural resources management. |
| Keywords: | ecosystem services, awareness, knowledge, perception, rural community, forest, Nigeria, Community/Rural/Urban Development, Environmental Economics and Policy, International Development, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:212605&r=env |
| By: | Joshi, Pramod K.; Aggarwal, P.K.; Tyagi, N.K.; Pandey, Divya |
| Abstract: | The Government of India has pursued policies supporting intensive use of irrigation and fertilizer for the development of agrarian economy. A first order assessment of the impacts of these development policies on mitigation, adaptation, resilience and sustainability has been made quantitatively with the help of specific performance indicators. The analysis is based on the hypothesis that productivity enhancement serves better to deal with climate change as it minimizes deforestation and therefore reduces intensification of greenhouse gas emissions. The assessment establishes that development policies have been highly successful in reducing potential greenhouse gas intensification and increasing the adaptation capacity in terms of food grain production. The performance of policies, particularly of water resources development, with respect to sustainability is, however, questionable. The relatively new initiative on micro irrigation fares well in respect of most performance indicators, calling for further policy support for its scaling out. |
| Keywords: | Virtual mitigation, Adaptation, Sustainability, Irrigation, Fertilizers, Agricultural and Food Policy, Environmental Economics and Policy, O13, Q58, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211817&r=env |
| By: | Lankoski, Jussi |
| Abstract: | Empirical evidence shows that biodiversity conservation policies implemented in agriculture sector in many OECD countries have not been environmentally effective nor cost-effective. There are several new policy mechanisms available to improve both environmental effectiveness and the cost-effectiveness, including spatially differentiated payments and conservation auctions. In this paper a theoretical framework is developed for describing farmers’ participation in government payment programme for enhancing semi-natural wildlife habitats on farmland. Payment types analysed include uniform payment, three types of conservation auctions with environmental targeting, uniform payment with environmental targeting and two types of differentiated payments with environmental targeting. Quantitative results show that uniform payment performs less efficiently than other payment types, and that auctions with environmental targeting are the most cost-effective option from analysed payment types. Adding environmental targeting to the uniform payment policy greatly improves the cost-effectiveness of uniform payment. Key |
| Keywords: | conservation auction, uniform payment, differentiated payment, policy-related transaction costs, targeting, Agricultural and Food Policy, Environmental Economics and Policy, Q57, Q58, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:212031&r=env |
| By: | Silva, Felipe; Fulginiti, Lilyan E.; Perrin, Richard K. |
| Abstract: | The Amazon Forest is the largest tropical forest in the world stretching over nine states in northern Brazil. Land use in the Amazon Forest has been under discussion due to its direct and indirect effects on emission and sequestration of greenhouse gases (GHGs) such as CO2, N2O and CH4. Our interest here is to investigate whether technological change in agriculture has resulted in higher or lower costs of emissions abatement. We examined a panel of nine states from this region during the period 1990-2009, a period of rapid agricultural expansion as well as a series of new environmental regulations. The rate of technical change and its biases were estimated using stochastic and non-stochastic approaches. Preliminary results indicate a technological progress for Brazilian’s Amazon Forest states, which suggests a simultaneously expansion on GDP and contracted on CO2e emissions due to technical change. This technical change has been biased toward GDP and against emissions, indicating an increase in GDP foregone to achieve a given reduction in emissions. |
| Keywords: | Amazon forest, Agriculture, Greenhouse gasses and Technical change., Environmental Economics and Policy, Production Economics, Productivity Analysis, Q54, Q55, O13, D24, |
| Date: | 2016–01–22 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea16:230092&r=env |
| By: | Panda, Architesh |
| Abstract: | Understanding vulnerability to climate variability and change through indicator based framework has been widely used in vulnerability analysis. This paper examines the socio-economic vulnerability of farmers exposed to drought conditions and climate variability in one of the highly vulnerable state, Odisha in Eastern India. Intensive survey was undertaken among 183 households in two districts to collect data on various socio-economic and livelihood indicators. Data were aggregated using a composite index and vulnerability in four villages was compared. Results suggest that caution is warranted in terms of the assumption that we make about adaptive capacity. A higher adaptive capacity of the communities does not necessarily imply that they are less vulnerable to the impacts of climate variability and change and vice-versa. We found that highly vulnerable villages to climate risks are also the ones involved in various adaptation actions in agriculture. The findings suggest that different component of vulnerability index should not be analyzed independently of disaggregated indicators with different underlying causes. Finally, results demonstrate the importance of diversified livelihoods in managing risks associated with climate hazards. |
| Keywords: | Climate change, Drought, India, Vulnerability, Environmental Economics and Policy, International Development, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:212612&r=env |
| By: | TANAKA Masaru (Moune Institute for Forest-Sato-Sea Studies); HATAKEYAMA Shigeatsu (NPO Mori wa Umi No Koibito) |
| Abstract: | Japan has managed to keep 67 percent of its forest area over the last half century. However, fishermen and the scientific community noticed a gradual breakdown in the fundamentally important ecological link between its forests and surrounding seas. In response, the Kyoto University established the Field Science Education and Research Center, which initiated the Forest-Sato-Sea studies on the interdependence of forest and sea ecosystems. Simultaneously, a grassroots movement of coastal fishermen--'The Sea is Longing for the Forest'--had started to develop. With heightened awareness of environmental problems resulting from the massive earthquake, tsunami, and nuclear accident of 2011, the movement and the people behind the studies have closely collaborated, convinced that fundamental solutions to environmental problems will require environmental education for the next generation--one rooted in real-life experiences. Such experiences can be gained by studying and working to restore the interdependence among forests, seas, rivers, and wetland habitats that connect them. To this end, it is hoped that an ASEAN Center for Forest/Sea Studies will be established, affirming ASEAN's commitment to collaboratively creating a sustainable future by balancing economic prosperity with environment conservation. |
| Keywords: | environment, forest, sea, ecosystem |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:dp-2016-05&r=env |
| By: | Matthieu Glachant (Cerna MINES ParisTech); Julie Ing (ETH Zurich, Switzerland); Jean Philippe Nicolai (ETH Zurich, Switzerland) |
| Abstract: | The need to transfer climate mitigation technologies towards the developing world has been acknowledged since the beginning of climate negotiations. Little progress has however been made as shown by Article 10 of the Paris Agreement. One reason is that these technologies could become vital assets to compete on global markets. This paper presents a partial equilibrium model with two regions, the North and the South, and imperfect competition in the international polluting goods market to analyze the North’s incentives to accept technology transfer. Results crucially depend on the existence of environmental cooperation. When both northern and southern governments set emission quotas non-cooperatively, inducing fewer global emissions is a necessary, but not sufficient condition for the North to accept the transfer. In contrast, when governments set quotas cooperatively, the North never accepts the transfer because it only leads to a partial relocation of pollutant goods production to the South. We derive the implications for the global regulation of climate change. |
| Keywords: | Technology transfer, Imperfect competition, Climate policy, Environmental cooperation, Cap and trade |
| JEL: | D43 F18 Q5 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:16-242&r=env |
| By: | Ehrlich, Oren; Bi, Xiang; Borisova, Tatiana; Larkin, Sherry |
| Abstract: | The recent developments of nonmarket valuation have focused on identifying preference heterogeneity and examining the impact it has on consumer’s willingness to pay. The objective of this study is to examine the extent to which heterogeneous environmental attitudes influence demand for freshwater recreational activities as well as the valuation of freshwater recreational benefits. We focus on the St. Johns River, the longest river in Florida, and use a telephone survey of Florida’s residents to elicit information in regards to household outdoor recreational experiences on the river. Information regarding respondent attitudes and perceptions towards Florida’s water resources and natural resource policies was gathered in the survey as well. We employed a latent class analysis to reveal two distinct classes of respondents based on their responses to questions regarding their environmental attitudes and perceptions. We then estimated a recreational demand model with respect to travel costs associated with getting to the river, household income, perceived water quality of the river, and respondents’ environmental attitudes within each latent class. We found that class 1’s individual recreational benefits are twice as large as class 2’s. We contribute to the literature by emphasizing that environmental attitudes directly influence consumer recreational demand and valuation of the river, and should be taken into consideration for water resource management policies. |
| Keywords: | latent class analysis, travel cost method, recreational demand, freshwater, st. johns river, preference heterogeneity, Consumer/Household Economics, Demand and Price Analysis, Research Methods/ Statistical Methods, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea16:230058&r=env |
| By: | McDermott,Thomas K.J. |
| Abstract: | Climate change will exacerbate the challenges associated with environmental conditions, especially weather variability and extremes, in developing countries. These challenges play important, if as yet poorly understood roles in the development prospects of affected regions. As such, climate change reinforces the development case for investment in disaster risk management. Uncertainty about how climate change will affect particular locations makes optimal investment planning more difficult. In particular, the inability to derive meaningful probabilities from climate models limits the usefulness of standard project evaluation techniques, such as cost-benefit analysis. Although the deep uncertainty associated with climate change complicates disaster risk management investment decisions, the analysis presented here shows that these considerations are only relevant for a relatively limited set of investment circumstances. The paper offers a simple decision framework that enables policy makers to identify the particular circumstances under which uncertainty about future climate change becomes critical for disaster risk management investment decisions. Accounting for climate uncertainty is likely to shift the optimal balance of disaster risk management strategies toward more flexible, low-regret type interventions, especially those that seek to promote"development first"or"risk-coping"objectives. Such investments are likely to confer additional development dividends, regardless of the climate future that materializes in a given location. Importantly, the analysis here also demonstrates that climate uncertainty does not necessarily motivate a"wait and see"approach. Instead, where opportunities exist to avail of adaptation co-benefits, climate uncertainty provides additional motivation for early investment in disaster risk management initiatives. |
| Keywords: | Adaptation to Climate Change,Climate Change Economics,Science of Climate Change,Economic Theory&Research,Climate Change Mitigation and Green House Gases |
| Date: | 2016–04–12 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7631&r=env |
| By: | Hu, Lijiao; Stain back, George; Li, Xiaoshu |
| Abstract: | Internalizing carbon value for forest landowners has the potential to increase carbon supply in forests and mitigate CO2 in the atmosphere. In this study, we developed a modified Hartman model to investigate how payments of carbon offsets impact the optimal management of hardwood forests in Kentucky considering price uncertainty and the risk of catastrophic events such as fire or storm damage. An Expected Value (E-V) model was used to conduct a sensitivity analysis of landowner aversion to price uncertainty. Best management strategies were examined to achieve maximized financial return for landowners in the face of both catastrophic risk and price variability. |
| Keywords: | carbon sequestration, catastrophic events, E-V model, Kentucky forests, the modified Hartman model, Environmental Economics and Policy, Q23, Q56, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea16:229983&r=env |
| By: | Ricci, Elena Claire; Catenacci, Michela; Travisi, Chiara M. |
| Abstract: | Climate Change (CC) poses significant threats to coastal areas, with the main impacts being sea-level-rise (SLR) and the consequent loss of land. Much work has been done to evaluate effective adaptation strategies, but further research is needed. This paper aims at analyzing the costs of CC and SLR in the Grado-Marano lagoon, and at proposing an example of methodology based on an economic evaluation of damages related to: loss of land on the basis of different land-uses (i); loss of non-use values (ii); losses in productivity/use values via Bayesian Networks (iii); and on a multi-criteria-analysis able to integrate different (monetary and non-monetary) criteria focused on three pillars of sustainability (iv) to compare adaptation-strategies. We find that the larger impacts are on residential and tertiary sectors, even if most of the area has an agricultural vocation, and that the best adaptation-strategy is beach-nourishment even if rankings depend on criteria weights. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:212293&r=env |
| By: | Fischer, Carolyn |
| Abstract: | Globally and locally, government support policies for green goods (like renewable energy) are much more popular internationally than raising the cost of bads (as through carbon taxes). These support policies may encourage downstream consumption (renewable energy deployment) or upstream development and manufacturing of those technologies. The use of subsidies—particularly upstream ones—is disciplined by World Trade Organization agreements, and its subsidies code lacks exceptions for transboundary externalities like human health or resource conservation, including those related to combating global climate change. The strategic trade literature has devoted little attention to the range of market failures related to green goods. This paper considers the market for a new environmental good that when consumed downstream may provide external benefits like reduced emissions. The technology is traded internationally but provided by a limited set of upstream suppliers that may operate in imperfect markets, such as with market power or external scale economies. We examine the national incentives and global rationales for offering production and consumption subsidies in producer countries, allowing that some of the downstream market may lie in nonregulating third-party countries. Although technology producer countries can benefit from restraints on upstream subsidies, global welfare is higher without them, and market failures imply that optimal subsidies are even higher. We supplement the analysis with numerical simulations of the case of renewable energy, exploring optimal subsidies for the major renewable energy producing and consuming regions and the cost of restrictions on upstream subsidies. |
| Keywords: | International Trade, Subsidies, Imperfect Competition, Externalities, Emissions Leakage, Environmental Economics and Policy, F13, F18, H21, Q5, |
| Date: | 2016–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemmi:234311&r=env |
| By: | Jin, Wei; Zhang, ZhongXiang |
| Abstract: | Whether China continues its business-as-usual investment-driven, environment-polluting growth pattern or adopts an investment and innovation-driven, environmentally sustainable development holds important implications for both national and global environmental governance. Building on a Ramsey-Cass-Koopmans growth model that features endogenous technological change induced by R&D and knowledge stock accumulation, this paper presents an exposition, both analytically and numerically, of the mechanism underlining China’s economic transition from an investment-driven, pollution-intensive to an investment and innovation-driven, environmentally sustainable growth path. We show that if R&D technological innovation is incorporated into China’s growth mechanism, then at some tipping point in time when marginal welfare gain of R&D for knowledge accumulation becomes equalized with that of investment for physical asset deployment, China’s economy will launch capital investment and R&D simultaneously and make a transition to a sustainable growth path along which consumption, capital investment, and R&D have a balanced share of 5: 4: 1, consumption, capital stock, and knowledge stock all grow at a rate of 4.9%, and environmental quality improves at a rate of 2.5%. In contrast, if R&D technological innovation is not harnessed as a new growth engine, then China’s economy will follow its business-as-usual investment-driven growth path along which standalone accumulation of dirty physical capital stock will lead to an more than 200-fold increase in environmental pollution. |
| Keywords: | Endogenous Technological Change, Sustainable Development, Economic Growth Model, China’s Economic Transition, Resource /Energy Economics and Policy, Q55, Q58, Q43, Q48, O13, O31, O33, O44, F18, |
| Date: | 2016–03–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemei:232926&r=env |
| By: | Oluoch-Kosura, Willis; Kulke, Elmer; Muluken, Adamseged; Kamiru, Hellen |
| Abstract: | The symposium seeks to engage professionals in Agricultural and Applied Economics in sharing experiences and insights to develop a common understanding on agricultural value chain analysis. Reaching consensus on how to integrate climate change aspects in agricultural value chain research and capacity development in institutions of higher learning will be important. Focusing on horticulture value chains, the symposium will provide a forum to refine, harmonize or contextualize agribusiness curricula in Universities across the world with a view to integrating value chain and climate change aspects in training modules and research. |
| Keywords: | Agribusiness Economics & Management, Food & Agricultural Policy Analysis, Rural/Community Development, Agricultural and Food Policy, Agricultural Finance, Q13, Q16, Q18, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:212598&r=env |
| By: | Murali, Palanichamy; Hari, Kuppusamy; Karpagam, Chidambara; Govindaraj, Gurrappa; Subhagowri, Jaganthan |
| Abstract: | Biofuels provide only around 2% of total transport fuel today, by 2050, 32 exajoules of biofuels will be used globally, accounting 27% of the world transport fuel. Some biofuels already perform well in economic terms, particularly sugarcane ethanol and other low cost agricultural biofuels. The biofuel program in India at niche stage though the policy has been rolled out well in advance. India has carefully designed the biofuel policy and blending ratio to reduce CO2 emissions and import of the crude oil. The log linear demand function was used to estimate the crude oil, diesel and petrol demand. Based on the demand, the bioethanol and biodiesel requirements were estimated. The possible ways to meet out the biofuel demand and production frontier were elaborated. Proper policy making, domestic production support measures for sustainable biofuel production and infrastructure for anhydrous ethanol storage are the guidepost for successful biofuel program in India. |
| Keywords: | sugarcane, demand, supply, biofuels, sustainability, Agricultural and Food Policy, Environmental Economics and Policy, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:212512&r=env |
| By: | Sesmero, Juan P.; Ricker-Gilbert, Jacob E.; Cook, Aaron M. |
| Abstract: | Using three waves of national representative household level panel data from Malawi, we examine two forms of adaptation to climate change: 1) adopting improved maize varieties and 2) adjusting input quantities and income sources. Our results indicate that climate change induces both forms of adaptation, though only the second appears relevant in determining climate change impacts on net revenue. Adverse trends in climate variables (increased temperature and rainfall variability, and reduced growing season rainfall) increase farmers’ reliance on income from subsistence maize production. Assets enhance a household’s capacity for adaptation to climate change by reducing reliance on maize-income. |
| Keywords: | Environmental Economics and Policy, Farm Management, International Development, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:212688&r=env |
| By: | Iho, Antti; Parker, Doug; Zilberman, David |
| Abstract: | Large animal facilities generate more manure than needed on their own feed production areas. Excessive nutrient applications deteriorate groundwater (nitrogen) and surface water quality (nitrogen and/or phosphorus). Due to differences in environmental and economic characteristics, adjacent regions may have differing objectives towards controlling nitrogen and phosphorus surpluses from manure applications. We consider jointly and separately optimal nutrient policies of an upstream agricultural and a downstream recreational region. We show that, depending on the environmental and economic characteristics, tightening upstream regulation with respect to the loading of one nutrient might increase the downstream loading of the other. We differentiate the impacts of manure regulation between the livestock farms and the adjacent crop production farms and show how this impacts nitrogen and phosphorus loading due to changes in nutrient application, crop uptake and changes in application areas. We allow regional differences in abatement objectives and identify locally and globally optimal policies. |
| Keywords: | Manure, Transboundary Pollution, Phosphorus, Nitrogen, Regulation, Externality, Environmental Economics and Policy, Livestock Production/Industries, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211780&r=env |
| By: | Blandford, David; Gaasland, Ivar; Vardal Erling |
| Abstract: | Agriculture makes a significant contribution to Norway’s emissions of greenhouse gases (GHG). Although agriculture accounts for only 0.3 per cent of GDP, it accounts for roughly 9 per cent of total GHG emissions. Norwegian agriculture is dominated by livestock production; ruminants (cattle and sheep) are particularly important. There are opportunities for GHG mitigation under existing technology through changes in agricultural practices. Analytically we derive abatement cost curves for Norway in terms of the change in economic welfare, and on a theoretical basis we examine the impact of various policy objectives on the abatement cost curve. In particular we consider the policy objective of keeping the production of calories at the current level. We use a detailed economic model to assess the impact and welfare implication of a reduction in GHG emissions. |
| Keywords: | greenhouse gas mitigation, economic model, abatement costs, International Development, C61, Q18, Q54, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211922&r=env |
| By: | Elvira M. Orbetta (Resources, Environment and Economics Center for Studies, Inc. (REECS), Suite 405, The Tower at Emerald Square, J.P. Rizal cor. P. Tuazon Streets, Project 4, Quezon City 1109, Philippines); Carlito M. Rufo Jr (Resources, Environment and Economics Center for Studies, Inc. (REECS)); Anabeth L. Indab (Resources, Environment and Economics Center for Studies, Inc. (REECS)) |
| Abstract: | The study assessed the incremental benefits and costs of different options to control PM10 and SO2 emissions from fossil-fired power plants using two power plants in Region IV (Southern Tagalog), Philippines, as case studies. Benefits were estimated by modeling the changes in ambient concentrations arising from the control, estimating the improvements, and valuing these in economic terms. The study focused on adverse health effects, using dose-response function established in other studies, and economic values based on the benefit transfer technique. Control costs were estimated using the engineering cost approach. Impacts were assessed within 10 and 50 km radius from each plant. The study showed that existing controls for particulates met the emissions standard. However, the use of fuel with standard sulfur content was not sufficient to meet SO2 emissions standard. Thus, a review of the sulfur content standard in fuel was recommended. SO2 emissions from each of the two power plants translated to maximum predicted ambient concentrations that were significant relative to the maximum allowable ambient concentration. The value of the health effects avoided was much larger when the impact area was extended from 10- to 50-km radius, it was much larger for oil than for coal, with the value of mortality effects avoided dominating the total. Among the different options analyzed only the switch to cleaner fuel for oil and increased thermal efficiency for coal were justified. With a switch to cleaner fuel, the value of health damage avoided considering a 50-km impact area was 0.08% to 3.34% of the current average selling price of electricity, implying a 0.11 % to 4.31 % increase in the average cost of power service if the power plants were made to internalize the health damages. |
| Keywords: | cost benefits, power plant, Philippines |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:eep:report:rr2016034&r=env |
| By: | Iwata, Hiroki |
| Abstract: | This study investigates the effect of an environmental regulation on the innovation choice of firms in an oligopoly. Most existing studies on environmental regulations and innovations examine the optimal behavior of firms when one innovation project is feasible. In our model, firms are allowed to choose from multiple types of innovation projects. Our main contributions are that we derive the conditions under which environmentally friendly and cost reducing innovations are selected in Bertrand competition and we show how environmental regulation affects innovation choice. |
| Keywords: | environmental regulation; innovation; the Porter hypothesis |
| JEL: | D21 Q55 Q58 |
| Date: | 2016–03–25 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:70280&r=env |
| By: | Clay, Karen (Carnegie Mellon University); Lewis, Joshua (University of Montreal); Severnini, Edson R. (Carnegie Mellon University) |
| Abstract: | Pollution is a common byproduct of economic activity. Although policymakers should account for both the benefits and the negative externalities of polluting activities, it is difficult to identify those who are harmed and those who benefit from them. To overcome this challenge, our paper uses a novel dataset on the mid-20th century expansion of the U.S. power grid to study the costs and the benefits of coal-fired electricity generation. The empirical analysis exploits the timing of coal-fired power plant openings and annual variation in plant-level coal consumption from 1938 to 1962, when emissions were virtually unregulated. Pollution from the burning of coal for electricity generation is shown to have quantitatively important and nonlinear effects on county-level infant mortality rates. By 1962, it was responsible for 3,500 infant deaths per year, over one death per thousand live births. These effects are even larger at lower levels of coal consumption. We also find evidence of clear tradeoffs associated with coal-fired electricity generation. For counties with low access to electricity in the baseline, increases in local power plant coal consumption reduced infant mortality and increased housing values and rental prices. For counties with near universal access to electricity in the baseline, increases in coal consumption by power plants led to higher infant mortality rates, and lower housing values and rental prices. These results highlight the importance of considering both the costs and benefits of polluting activities, and suggest that demand for policy intervention may emerge only when the negative externalities are significantly larger than the perceived benefits. |
| Keywords: | mid-20th century air pollution, coal-fired electricity generation, infant mortality, housing values, tradeoffs |
| JEL: | N32 N52 N72 N92 Q40 Q48 Q53 Q56 I15 J24 J30 R11 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9884&r=env |
| By: | Henseler, Martin; Roder, Norbert; Kreins, Peter; Liebersbach, Horst; Osterburg, Bernhard |
| Abstract: | In Northern and Central Europe, short-rotation coppices (SRC) have become a profitable agricultural production alternative, particularly for marginal fields with suitable groundwater levels. The replacement of fossil fuels by the wood chips produced in SRC contributes to the mitigation of greenhouse gases (GHGs). Due to heterogeneous regional production conditions, the impacts on economy, production and GHG mitigation vary. Previous studies investigate specific agronomic, environmental and economic aspects of SRC. This study complements the existing literature by estimating the economic mitigation potential from SRC in Germany. It presents an integrated modeling approach that considers agronomic and economic aspects and investigates the mitigation potential and the abatement cost efficiency arising from abatement-based payments. The simulation of different payment scenarios indicates that SRC could mitigate up to 15 % of the German agricultural sector’s GHG emissions. The integrated model approach links a site model and the agro-economic model RAUMIS and can be regarded as a fruitful development for addressing SRC-related research questions. |
| Keywords: | Short-rotation coppice, Site model, Agro-economic model, Agricultural production, Greenhouse gas mitigation, Agribusiness, Q11, Q18, Q54, Q58, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:212287&r=env |
| By: | Kong Sopheak (Graduate Program in Development Studies of the Faculty of Development Studies, Royal University of Phnom Penh, Cambodia) |
| Abstract: | This report presents an economic analysis of the different uses and the indirect use value of mangroves in terms of their support as nurseries and breeding grounds for commercially important finfish in Koh Kong, Kep, Kampot, and Preah Sihanouk, which are four coastal provinces in Cambodia. A total of 300 households in four different locations that have different mangrove characteristics were surveyed in order to collect information on the traditional uses of mangrove extracted by the local communities. This study estimated the direct use value of mangrove products collected by households, including fuelwood, charcoal, wood for construction materials, fish, and snails. It also estimated the indirect use value of mangrove forest resulting from its nursery and breeding ground services for commercially important finfish. The results of the study showed that both the direct and indirect values derived from mangrove forests are very high. Thus, failing to find and implement appropriate management strategies and policies on mangroves conservation would lead not only to serious or irreversible ecological degradation, but also to substantial economic losses. |
| Keywords: | Cambodia, Coastal/Marine, Mangroves and Wetlands, Benefit Valuation |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:eep:report:rr2016022&r=env |
| By: | Eduardo L. Giménez; Miguel Rodríguez |
| Abstract: | Green Tax Reforms [GTR] have been initially devised as a policy proposal to tackle simultaneously several political goals, such as accomplishing environmental objectives together with lesser tax distortions requiring tax revenue recycling. Yet, recent fiscal stress episodes in many developed countries have defied this view. In this paper, we assess the convenience of revenue-neutral restrictions in GTR on efficiency basis. Usual revenue-neutral conditions impose on policymakers additional constraints that may restrain welfare gains. Our conclusions may provide theoretical support for the third generation of GTR (calling for a departure from revenue-neutral conditions on GTR), as well as some recent legal European experiences. |
| Keywords: | green tax reforms, revenue neutrality, optimal taxation |
| JEL: | H23 Q48 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:gov:wpaper:1605&r=env |
| By: | Emilie Bécault (GGS, KU Leuven); Axel Marx (GGS, KU Leuven) |
| Abstract: | The main objective of this working paper is to take a preliminary look at how climate finance to developing countries has been developing outside the multilateral realm and at times, even independently from states. To this end, we first provide a review of the core concepts used in the academic and policy discourses on global climate finance, and then proceed by mapping three types of non-multilateral financing initiatives: bilateral, private and hybrid. While we found significant evidence that the non-multilateral realm of climate finance to developing countries is growing both in scope and in diversity, there remains substantial obstacles to properly tracking and monitoring international climate financial flows to developing countries. In addition, our analysis suggests that a central question in current and future UN climate negotiations should be how to better link private finance to public funding institutions and instruments to scale up funding for adaptation activities in developing countries most vulnerable to the effects of climate change. |
| Keywords: | climate finance, climate flows, climate change, public-private partnerships, climate-related development aid, climate financing initiatives |
| JEL: | F55 |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:nam:befdwp:9&r=env |
| By: | Xie, Yang; Zilberman, David |
| Abstract: | We investigate the economic relation between two common approaches to tackling water scarcity and adapting to climate change, namely expanding water-storage capacities and improving water-use efficiency. We build, analyze, and extend a simple model for capacity choices of dams, incorporating stochastically dynamic control of water inventories and efficiency in water use. We show that expanding water-storage capacities could encourage water users to improve water-use efficiency and improving water-use efficiency could increase optimal dam sizes even if water-use efficiency improvement decreases the water demand. The possibility of complementarity is numerically illustrated by an empirical example of the California State Water Project. Our analysis implies that, if complementarity holds, resources should be distributed in a balanced way between water-storage expansions and water-use efficiency improvement instead of being concentrated on one side with the other side being ignored. |
| Keywords: | Environmental Economics and Policy, Land Economics/Use, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211894&r=env |
| By: | Naik, Vinod R.; Kunnal, L.; Nethrayini, K.R. |
| Abstract: | The present study was conducted in Belgaum District of Karnataka, India. To know the viability of organic vegetable cultivation, a sample of 30 farmers each practicing organic cultivation of tomato and chilli and 30 farmers each practicing non-organic cultivation of tomato and chilli were selected randomly for the study. The data so collected were analysed using budgeting technique and output decomposition technique. The study revealed that, even though per acre cost of cultivation and yield of both crops on organic farms was less than non-organic farms but the B: C ratio was found higher in organic farms. The outcome of decomposition analysis revealed that in case of both the crops, organic farming technology was the major contributing factor for increase in income of the organic growers over the non-organic growers. Hence it is advisable for the farmers to switch over to organic farming which is environmental friendly and cost effective. |
| Keywords: | Budgeting technique, Organic farming, Non-organic farming and Decomposition technique, Crop Production/Industries, Farm Management, Financial Economics, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:212520&r=env |
| By: | Karantininis, Kostas; Hajderllari, Eliona |
| Abstract: | This paper investigates the market potential for a new technology such as a genetically modified crop, which produces both a private and a public good. A theoretical framework is developed, based on vertically differentiated products and heterogeneous producer returns. Our setting corresponds to a system composed of a biotech firm, individual farm, consumer and the government. We claim that coordination among every single stage of the system is needed in order for the adoption process to be successful and beneficial to all those involved. Our results indicate that the market adaption of a genetically modified product depends on the magnitude effect of the new technology on the incremental savings and costs as well as consumers’ aversion and the carbon emission market price. In particular we consider the carbon emissions market as an important instrument associated with the reduction of the two negative parameters of production costs and consumers aversion.. |
| Keywords: | GMO, China, GHG, Public Good, Crop Production/Industries, O34, Q17, Q56, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211831&r=env |
| By: | Gao, Yang; Williams, Ryan Blake; Mitchell, Donna M. |
| Abstract: | Agricultural production on the Texas High Plains is heavily dependent on the Ogallala Aquifer, which accounts for approximately 95 percent of groundwater pumped. Rapid groundwater depletion has been observed in the Ogallala Aquifer, which is attributed to low recharge rates and high water withdrawals. In an effort to manage this limitedly-renewable water resource, High Plains Water Conservation District (HPWD) No.1 has established a rule to reduce pumping 1.25 acre-feet per acre per year for all groundwater users within HPWD. This research evaluates the efficiency and distributional effects of a “cap and trade” mechanism for the HPWD region under alternative methods of allocating the allowable groundwater use: an equal distribution rule and a uniform percentage reduction rule. Marginal abatement curves are derived from producer profit functions, which include four irrigated and three rain fed crops. Optimal cropping choices, water use, water permit trades, and water permit prices are estimated simultaneously by maximizing producer profits. The relative efficiency of the programs are evaluated by comparing total producer profits. The results shows that the equal distribution cap will result in a more efficient use of groundwater resources, while the uniform percentage reduction cap will result in less wealth redistribution. |
| Keywords: | Cap and Trade, Water Markets, Groundwater, Environmental Economics and Policy, Resource /Energy Economics and Policy, Q15, Q18, Q2, Q38, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea16:230015&r=env |
| By: | Evgenii Monastyrenko |
| Abstract: | European electricity industry has recently come through liberalization. Surge of intakes with high share of cross-border deals was market players’ response. Measuring of post-merger performance alterations is a central question of M&A literature. EU energy sector is responsible for significant part of global greenhouse gas emissions. Its efficiency should be regarded with respect to ecological dimension. This study addresses combined economic and environmental performance of 15 biggest European energy producers in 2005-2013. I exploit Data envelopment analysis (DEA) with CO2 as an undesirable output. Panel fractional regression model with financial controls is used to isolate effects of completed mergers. Results suggest that in short term firms profit from selling their subsidiaries to foreign counter-parties. This effect doesn’t sustain over time. Same-type domestic deals are detrimental in short run, but performance-enhancing in long term. Domestic and cross-border acquisitions immediately damage performance. Later ones stimulate efficiency in the long run. |
| Keywords: | Mergers and acquisitions, Firm performance, Data envelopment analysis, Fractional regression model, Electric power industry, Carbon dioxide emissions |
| JEL: | F21 G34 L25 L94 D24 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:wsr:wpaper:y:2016:i:169&r=env |
| By: | Louhichi, Kamel; Ciaian, Pavel; Espinosa, Maria; Colen, Liesbeth; Perni, Angel; Gomez y Paloma, Sergio |
| Abstract: | This paper presents the first EU-wide individual farm level model (IFM-CAP) intending to assess the impacts of CAP towards 2020 on farm economic and environmental performances. IFM-CAP is a static positive programming model applied to each EU-FADN individual farm to guarantee the highest representativeness of the EU agricultural sector and to capture the full heterogeneity across EU farms in terms of policy representation and impacts. The model is used to assess the effects of the crop diversification measure. Results show that most farms choose to comply with the diversification measure owing to the sizable subsidy reduction imposed in case of non-compliance. However, the overall impact on farm income is rather limited: farm income decreases by less than 1% at EU level, and only 5% of the farm population will be negatively affected. Nevertheless, for a small number of farms the income effect could be more substantial (more than -10%). |
| Keywords: | Common Agricultural Policy, Greening, Farm Level Model, Positive Programming Model, EU, Agricultural and Food Policy, C55, Q12, Q18, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:212155&r=env |
| By: | Troost, Christian; Berger, Thomas |
| Abstract: | In combination with crop growth models, farm-level models allow an in-depth, process-based analysis of farmer adaptation to climate change and agricultural policy. Evaluated for all farms in an area and extended by interactions, farm-level models become agent-based models that allow simulating aggregate regional production and structural change. Confined to a local or regional scope, however, they cannot directly incorporate price feedbacks that play out at global scale. In this contribution, we use experimental designs to evaluate a non-connected agent-based model for the full space of potential future price developments. We discuss and compare the use of standard regression analysis and non-parametric, automatic methods (MARS and Kriging) to summarize supply behavior over the simulated price ranges. Estimated supply functions constitute a surrogate model for the original agent-based model and could be used to iterate detailed regional analysis with national or global market models in an efficient way. |
| Keywords: | Agribusiness, International Development, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211929&r=env |
| By: | George Marbuah (Swedish University of Agricultural Sciences) |
| Abstract: | The growing recognition of social capital as an important parameter necessary for shaping pro-environmental behaviour and attitudes is well established in the literature and continues to engage the attention of policymakers, academics and citizens in many jurisdictions. In this paper, we contribute to this strand of literature by investigating the extent to which various elements of social capital influences Swedish public’s tendency to contribute financially or through lifestyle changes in order to protect the environment. Using data from the latest wave of the International Social Survey Programme (ISSP) on the environment in 2010, we explore empirically the link between individuals’ willingness to pay (WTP) and social capital influence using an ordered logistic model. The results show, that, individuals in Sweden are fairly willing to pay for the environment and that this decision is principally and significantly influenced by elements of social capital. In particular, we find quite robust results to show that social and institutional trust, environmental group membership among related civic participation activities and adherence to environmental norms significantly impacts the probability of individuals’ decision to sacrifice toward environmental sustainability by paying higher environmental taxes, prices or through standard of living adjustments. |
| Keywords: | Willingness to pay, Social capital, Environmental protection, Ordered logistic regression, Sweden |
| JEL: | A13 A14 Q50 Q51 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2016.13&r=env |
| By: | Owen, Stephanie; English, Burton C.; Lambert, Dayton M.; Clark, Christopher D.; He, Lixia L. |
| Abstract: | Tennessee’s water resources could become stressed as population continues to increase, climate change impacts water availability, and agricultural producers increase irrigation. These stresses could impact the agricultural sector and other industries as competition for limited water resources increases. To prepare for these anticipated changes, farmers, policymakers, and researchers alike could benefit from quantifying the economic value of water to formulate cost-effective and sustainable water use practices. This analysis uses a linear programming (LP) model to determine the shadow value of water for 536 economic sectors in Tennessee, given changes in water availability and water use by economic sectors. Economic sectoral activity uses data from IMPLAN (the Impact Analysis for Planning model). Gross regional product is maximized, constrained by water and labor requirements for each sector. The economic implications of changes in water availability and final demand among different industries is also evaluated to determine which sectors have the highest values for water under varying water availability scenarios. The goal is to provide useful information that can be used in planning and managing Tennessee’s water resources in the medium to long term. |
| Keywords: | input output analysis, linear programming, water allocation, climate change, value of water, Agricultural and Food Policy, Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea16:230007&r=env |
| By: | Siameh, Celestine; Tack, Jesse; Barnett, Barry J.; Harri, Ardian |
| Abstract: | Response to adverse weather conditions by cotton and other major crops are likely to be heterogeneous across varieties, but it is unclear whether this translates into yield risk heterogeneity across varieties. Crop insurance is the dominant agricultural policy instrument and will play an important role for any potential adaptation path to climate change. However, the impact of climate change on the performance of crop insurance programs is not well established and currently the Risk Management Agency does not offer alternative premium rates across varieties. This study utilizes Mississippi cotton variety trial data for the period 1998 to 2013 to identify whether there are heterogeneous crop insurance premium rates across varieties using a moment-based model. Warming impacts on these rates will then be measured. Our results identified heterogeneities for both the mean and variance of cotton yields across varieties. These differences extended to the coefficient of variation – a commonly used measure of yield risk – as well as actuarially fair premium rates, which capture a producer’s exposure to downside risk. Our findings provide evidence of yield risk heterogeneity across varieties. The finding of heterogeneous premium rates across varieties presents an interesting problem for the FCIP. |
| Keywords: | Cotton, yield risk, Heterogeneities, premium rates, climate change, Agricultural and Food Policy, Environmental Economics and Policy, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea16:230089&r=env |
| By: | Liu, Min; Heijman, Wim; Zhu, Xueqin; Dries, Liesbeth; Huang, Jikun |
| Abstract: | This paper analyses the degree of divergences among different groups of stakeholders in allocation of the four types of rural land: cultivated, range, forest and other land, and the optimal allocation from the social perspective of balancing economic and ecological benefits. The preference of stakeholders stemming from stakeholders’ different ecological and economic interests on four types of rural land was quantified by the Analytic Hierarchy Process. Weights for stakeholders in the social welfare function were derived for three social-economic scenarios. Welfare economics was employed then to determine the ‘individual’ or ‘private’ optimal allocation of each stakeholder by maximizing its utility function, and social optimal allocation by maximizing the social welfare function. A county located in the eco-fragile areas of Northern China was taken as a case to present the empirical analysis. Our results provide policy insights on how to regulate the divergences and achieve an efficient allocation of rural land. |
| Keywords: | Agricultural and Food Policy, Land Economics/Use, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:212051&r=env |
| By: | Zhang, Zhaohua; Hite, Diane |
| Abstract: | In this paper, we analyze how environmental disamenity affects residential location choices using a horizontal sorting model. The environmental disamenity is measured by the distances between houses and the nearest landfill and gravel pit. The study area in this paper is the Franklin County of Ohio State and each of the housing units chosen by the households in the sample represents a housing type. The first stage estimation results show that rich white householder are more likely to select houses with longer distance from the gravel pits and landfills than rich black householder. After controlling for the price endogeneity, the second stage estimation supports the hypothesis that longer distance to the landfill increases the fixed utility of the house. Also, the direction for the effect of distance to the nearest gravel pit is as expected, which indicates that households prefer to select houses with longer distance to the gravel pit operation. |
| Keywords: | Residential location choice, Sorting model, Gravel pit, Landfills, Consumer/Household Economics, Land Economics/Use, R23, R32, Q51, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea16:229739&r=env |
| By: | Santato, Silvia; Mysiak, Jaroslav; Pérez-Blanco, Carlos Dionisio |
| Abstract: | The current Water Abstraction License (WAL) regime in Italy is no longer flexible enough to cope with the challenges posed by human-induced climate and global environmental changes. The cornerstones of the current regime were laid down in the 1930s and have remained essentially unchanged ever since. The sole noteworthy reform of the Italian WAL regime was the decentralization of the regulatory competences from the state to the regional authorities in the late 1990s. In this paper, we review the WAL regimes across the administrative regions comprising the Po River Basin District (PRBD), the largest and economically most important in Italy. PRBD’s WAL regime includes a rigid and scattered WAL normative that hinders the performance of bottom-up conflict resolution mechanisms at a basin scale; a water pricing scheme that does not reflect the cost of water conveyance and use, and does not encourage efficient water allocation; and the lack of a central WAL register, which delays and in some cases impedes an environmental impact assessment for issuing new licenses or renewing existing ones, and does not allow prioritizing applications according to their full economic value. We argue these deficiencies may compromise both the integrity of riverine and water dependent ecosystems and the economic uses of water. This paper offers insights that can inform reform of water allocations in the PRBD and elsewhere in Italy and in Europe. |
| Keywords: | Water Abstractions License, Water Fee, Water Security, Po River Basin District, Environmental Economics and Policy, Q21, Q25, Q28, |
| Date: | 2016–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemei:234310&r=env |
| By: | Yi, Fujin; Jiang, Fei; Zhong, Funing; Ding, Aijun; Zhou, Xun |
| Abstract: | The impact of surface ozone pollution on the yield of winter wheat is empirically estimated by considering socio-economic and climatic determinants. This research is the first to use an economic framework to estimate the ozone impact, and a unique county-level panel is employed to examine the impact of the increase of surface ozone concentration on the productivity of winter wheat. In general, the increment of surface ozone concentration during the ozone-sensitive period of winter wheat is found harmful to its yield, and the damage to China’s grain supply and economic values are non-negligible. This study also confirms that other stress conditions, such as drought and air particles, can potentially mitigate the adverse effect of surface ozone exposure on the yield of winter wheat. |
| Keywords: | Crop Production/Industries, Environmental Economics and Policy, International Development, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211866&r=env |
| By: | Vojtech Korbelius (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nabrezi 6, 111 01 Prague 1, Czech Republic); Michal Paulus (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nabrezi 6, 111 01 Prague 1, Czech Republic); Tomas Troch (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nabrezi 6, 111 01 Prague 1, Czech Republic) |
| Abstract: | We model the life expectancy function for the Czech Republic using three types of explanatory variables: socio-economic, healthcare and environmental pollution factors. The paper presents the first life expectancy model of the Czech Republic and contributes to the existing literature also by the analysis of district level data and inclusion of environmental pollution variables. We found two qualitatively different life expectancy functions where one is applicable for men at the age of 45 and 65 and women at the age of 45 and the other is suitable for women at the age of 65. Key findings can be summarized as follows: only one healthcare factor was significant in all models simultaneously and environmental pollution factors were revealed as significant and should be included in other models of life expectancy function. |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2016_06&r=env |
| By: | Sam, Anh; Bi, Xiang |
| Abstract: | Anaerobic digestion (AD) systems can reduce methane emissions and ground water contamination by turning livestock wastes into renewable energy. However,the adoption of AD systems is costly,and the initial capital investment is formidable especially for medium and small farms. To promote adoption of AD systems,the EPA and state governments have implemented various incentive programs providing technical and financial assistance. The objective of this study is to examine the effectiveness of state-level incentives in promoting the adoption of AD systems in the U.S. We compile a panel data for 48 states in the U.S. from 2003 to 2015 on the state-level adoption rate of AD systems,livestock production,and incentive programs to promote the adoption of AD systems. We compare the effectiveness of performance-based incentives,loan,and tax credit while controlling for state-level adoption of renewable portfolio standards and net metering,climate,livestock production,and types of AD systems. We expect to find that adoption rates for AD systems are significantly greater with performance-based incentives than with loan and tax credits. |
| Keywords: | Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea16:230102&r=env |
| By: | Benjamin Ouvrard (ETA, CNRS and University of Strasbourg); Sandrine Spaeter (ETA, CNRS and University of Strasbourg) |
| Abstract: | We consider a model where individuals can voluntarily contribute to improve the quality of the environment. They differ with regard to their confidence in the announcement made by the regulator about the risk of pollution, modelized in a RDEU model, and to their environmental sensitivity. We compare the efficiency of a tax in increasing individual contributions with the advantages of a nudge based on the announcement of the social optimum to each individual. Under some conditions, a nudge performs better than a tax, in particular, because the individual reaction depends directly on sensitivity, while only indirectly with a tax. Moreover, a nudge does not require information about private contributions, contrary to a tax based on the contributions that are not provided compared to the social optimum. Lastly, its implementation is much cheaper. Yet, some drawbacks are discussed and simulations illustrate our results. |
| Keywords: | incentives, nudge, environmental sensitivity, probability distortion, tax |
| JEL: | Q50 D8 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2016.15&r=env |
| By: | Mili, Samir; Judez, Lucinio; de Andres, Rosario |
| Abstract: | This contribution analyzes the adoption of integrated and organic olive farming, and the likely impacts of the new CAP reform on diverse olive farming systems in Andalusia, Spain. We use statistical methods for the former and a Positive Mathematical Programming model calibrated with the neutral procedure for the latter. The PMP model compares the situation of the average olive farm in base year with its position in a simulated year using two policy scenarios. Results indicate that the new rules on green payment don’t incentive the adoption of sustainable systems, although they don’t prevent the development of these systems whose sustained growth seems to be largely independent from market circumstances and agricultural policies. An alternative policy advocating the implementation of green payment scheme in the olive sector would lead to a better redistribution of public support from less to more environmentally-friendly farming practices, contributing to enhance the CAP aids legitimacy. |
| Keywords: | Agricultural and Food Policy, Crop Production/Industries, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:212462&r=env |
| By: | Tong, Benjamin; Boyer, Tracy; Sanders, Larry |
| Abstract: | Best-worst scaling, also called maximum-difference scaling, is used to rank the most important to least important benefits and characteristics of a conservation practice during the adoption decision-making processes of agricultural producers and non-farming/absentee landowners. Both groups are found to rank and value the attributes and reasons for adoption of conservation practices differently at the 95% significance level. Producers rank “practice benefits the farm ecosystem” as the most important consideration when making conservation practice decisions on their operation 29.7% of the time. This is followed closely by the attribute, “practice improves profit,” which is chosen as the best reason by 29.4% of producers. Non-farming/absentee landowners rank, “practice benefits the farm ecosystem” as the most important factor 33.4% of the time, but they choose, “practice improves profit” only 23.4%. This difference, combined with variations in the rankings of the reasons for adopting conservation practices between the two groups reinforces the importance of land tenure in decision making. This indicates the need for both new extension educational efforts and economic incentives to reduce negative externalities from sediment loading and eutrophication that could be ameliorated from increased adoption of soil and water conservation. |
| Keywords: | Best Worst, Non-farming and Absentee Landowners, Maximum Difference, Adoption of Conservation, Agricultural producers, Soil and Water Conservation, Environmental Economics and Policy, Resource /Energy Economics and Policy, Q150 Q24 Q25 Q58 Q15, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea16:229775&r=env |
| By: | Junker, Franziska; Wolf, Verena; Marquardt, Sandra; Ledebur, Oliver |
| Abstract: | Due to concerns regarding possible negative impacts of conventional biofuels on food security, biodiversity, land use change and greenhouse gas emission savings, the EU wants to restrict the use of food crop based biofuels. Current legislation stipulates a minimum share of ten percent renewables in fuel consumption in the transport sector. Recent policy proposals limit the share of food crop based biofuels counting towards the achievement of this share to six and seven percentage points. This policy change will have an effect on biofuel as well as on feedstock markets. To analyze the magnitude of such a policy change on relevant domestic and international markets, we extend and apply a computable general equilibrium model. Main findings are that limiting the use of food crop based biofuels in the EU only slightly affects domestic rapeseed production but significantly reduces vegetable oil imports. |
| Keywords: | Biofuel policies, CGE modeling, Agricultural markets, Agricultural and Food Policy, Q16, Q18, Q20, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211819&r=env |
| By: | Carbajo, Aníbal E. |
| Abstract: | Mientras que los países desarrollados presentan un 2% de su población infectada con parásitos o enfermedades infecciosas, los países en desarrollo alcanzan el 40%. Esto está asociado a las diferencias socioeconómicas reflejadas en la nutrición, sanidad, calidad de viviendas, condiciones de trabajo y servicios de salud. Por este motivo, el efecto del cambio climático sobre la salud en estos países debe centrarse en estas convalecencias. Argentina se encuentra en el límite sur de la distribución del dengue y la malaria en América del Sur, y es por ello que el estudio del riesgo de estas enfermedades frente a cambios climáticos es de suma importancia. |
| Keywords: | CAMBIO CLIMATICO, SALUD, ENFERMEDADES TRANSMISIBLES, PALUDISMO, RIESGO, MEDICION, COSTOS, CLIMATE CHANGE, HEALTH, COMMUNICABLE DISEASES, MALARIA, RISK, MEASUREMENT, COSTS |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col039:39009&r=env |
| By: | Spiller, Jörg; Bolle, Friedel |
| Abstract: | In a laboratory experiment we investigate inter-generational concerns and myopia in a dynamic Public Good game. Groups of four played a 15-period game where they could either invest in a green sector or in a more profitable brown sector that builds a pollution stock. We find that subjects are more cooperative when their final pollution stock will be inherited by another group in a later session. Furthermore, we observe that defection from a negotiated common plan is higher when subjects are in a loss frame, negotiated plans are more ambitious. We analyze our results in reference to several social preference theories and find that Linear Altruism is most supported in such a dynamic environment. |
| Keywords: | Dynamic,Environmental Economics,Experimental Economics,Inter-Generation,Public Good |
| JEL: | H41 C91 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:euvwdp:383&r=env |
| By: | Boyer, Tracy; Ramli, Nurul Nadia |
| Abstract: | Encroachment by eastern redcedar, an invasive species, threatens the ecosystem health and agriculture returns in the southern Great Plains. The invasion of eastern redcedar has a detrimental effect on livestock and wheat production in Oklahoma by competing with native grasses, reducing available forage, competing for scarce water resources and negatively affecting human health. The estimated costs of management are in between $3 to $150 per acre depending on the type of habitat, the level of encroachment, and treatment technique (Bidwell and Weir 2007). Recently, the rising costs associated with removal of mature trees has rekindled interest in biofuel use of redcedar or the creation of marketable cedar products. In order to estimate whether such enterprises may be viable, an estimate of the potential supply of redcedar is needed. Therefore it is essential to identify the factors that can influence landowners’ willingness to pay for eastern redcedar removal. |
| Keywords: | Willingness to pay, Discrete Choice Valuation, Eastern Redcedar, Land Management, Agricultural and Food Policy, Environmental Economics and Policy, Land Economics/Use, |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea16:230076&r=env |
| By: | Lakner, Sebastian; Breustedt, Gunnar |
| Abstract: | The article summarizes the literature on efficiency and productivity of organic farming. A short overview on theories and models is provided. We can distinguish between studies that concentrate of specific problems of the organic sector and studies that aim to compare conventional and organic farming systems. Sample selection is a major challenge for comparisons between organic and conventional farms, since the organic farms have a different farm-structure and are often represented by a relatively small number of observations. We find that conversion to organic farming is influenced by inefficiency. In three of four studies, organic farms have a lower productivity than conventional farms. Studies on environmental efficiency document that organic farming show a higher degree of efficiency if environmental variables (such as landscape elements and diversity in the croprotation) are taken into account. The impact of subsidies on farm efficiency is often found to be negative. |
| Keywords: | Organic Farming, Technical Efficiency, Environmental Efficiency, Productivity, Farming Systems, Subsidies, Crop Production/Industries, Farm Management, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:212025&r=env |
| By: | Tabeau, Andrzej; van Meijl, Hans; Overmars, Koen P.; Stehfest, Elke |
| Abstract: | The REDD policy which preserves, enables substantial emission reductions. Since agricultural production and area expansion is a primary driver of tropical deforestation, REDD policies might limit the expansion possibilities of agricultural land use and therefore influence competitiveness, agricultural prices, trade, production and food security the world. This paper studies the impact of REDD policies on the agri-food sector and food security with a global CGE model called MAGNET. It focuses on the restrictions on agricultural land expansion within the REDD policy package. Simulation results show that REDD policies start to affect the agri-food sector in some lower developed countries if more than 15% of potentially available agricultural areas are protected from deforestation. A stringent REDD policy that protects 90% of land reserves that could potentially be used for agriculture production results in a global real agricultural price increase of almost 6%, and a worldwide agricultural production decrease of 1.5%. |
| Keywords: | REDD, deforestation, land supply, agricultural prices and production, scenarios, Environmental Economics and Policy, Food Security and Poverty, D58, O13, O50, Q11, Q18, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211940&r=env |
| By: | Yeboah, Osei; Thomas, Terrence W.; Gunden, Cihat; Ogbole, Enekole J. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea16:229790&r=env |
| By: | Nguyen Thi Y Ly (Department of Environmental and Natural Resource Economics, Faculty of Economics, University of Agriculture and Forestry); Pham Thanh Nam |
| Keywords: | Payment for Environmental Services,Southeast Asia,Policy Implementation |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:eep:report:rr20160340&r=env |
| By: | Chhinh Nyda (Master of Development Studies Program, Royal University of Phnom Penh); Cheb Hoeurn (Royal University of Phnom Penh); Poch Bunnak (oyal University of Phnom Penh) |
| Keywords: | Climate change, Cambodia |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:eep:report:rr20160316&r=env |
| By: | Perez, Rafael; Zepeda, Eduardo |
| Abstract: | The United Nations’ Sustainable Development Goal 7 (SDG7) consists in ensuring access to affordable, reliable, sustainable and modern energy for all. Before Mexico can achieve this goal, a deeper insight into the prevailing status of rural households’ energy access needs to be identified. The primary purpose of this study is to evaluate how does the consumption for different energy carriers vary with income in Mexican rural households. Using household survey data an approach to the income elasticities of different energy carriers (electricity, liquefied petroleum gas (LPG), natural gas, coal, and firewood) is computed. The preliminary results suggest that all variables reported the expected sign except for firewood. When the income of Mexican rural households increases by 1%, their consumption of electricity, LPG, natural gas, and firewood, increases by 0.35%, 0.24%, 0.44%, and 0.12%, respectively. Additionally, when the income varies by 1%, the coal consumption decreases by 0.09%. |
| Keywords: | Modern energy, income elasticity, rural households, Sustainable Development Goals., Resource /Energy Economics and Policy, O13, 012, Q01, |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea16:229869&r=env |
| By: | Olila, Dennis; Nyikal, Rose; Otieno, David |
| Abstract: | Climate change and weather variability are perhaps some of the major challenges facing the world today. In the phase of these challenges, various climate mitigation strategies including financial, production, as well as marketing aspects have played a significant role in cushioning farmers against adverse effects. In Kenya, agricultural insurance is still at a pilot stage after the unsustainable effort in the 1970’s. Despite the noble intention to revive the crop insurance industry, limited empirical information exists on farmers’ preferences for crop insurance. The study employed Choice Experiment (CE) to elicit farmers’ preferences for crop insurance design features among 300 farmers. The analysis employed a random parameter logit (RPL) model. The results show that farmers are willing to pay for various features of crop insurance. These findings are important in informing ex-ante design and improvement of crop insurance programmes in Kenya and the rest of the world. |
| Keywords: | Crop insurance, Choice experiment, Random parameter logit, Kenya, Crop Production/Industries, Farm Management, C90, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:212596&r=env |
| By: | Bartha, Zoltán; Tóthné Szita, Klára |
| Abstract: | This study aims to provide a comparative analysis of socioeconomic development in Slovakia and Hungary. For this purpose, we use the State of the Future Index (SOFI) to measure and forecast the socioeconomic well-being of both the countries from 1995 to 2015. The SOFI methodology has many characteristics that are in line with the 2009 Stiglitz-Sen-Fitoussi report. We find that during 1995–1999, Slovakia had a higher overall SOFI total, signifying a higher level of well-being; subsequently, however, Hungary pulled ahead between 1999 and 2005, after which Slovakia overtook Hungary yet again. Our predictions suggest that Slovakia will continue to pull ahead in the 2015–2025 period. The areas where Hungary has scope for considerable improvement are life expectancy, GDP per capita, renewable energy resources and CO2 emission and government debt. In some areas, both countries perform poorly: level of corruption and demographic trend. However, Hungary seems to have an advantage in R&D expenditure, unemployment level and voter turnout. |
| Keywords: | development path; Hungary; State of the Future Index; Slovakia |
| JEL: | E01 O11 O57 |
| Date: | 2015–12–31 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:70833&r=env |
| By: | Osman, Rehab; Ferrari, Emanuele; McDonald, Scott |
| Abstract: | This study provides quantitative assessments for the impacts of efficiency enhancement for different types of irrigation water under water scarcity conditions. It employs a single country CGE (STAGE) model calibrated to an extended version of a recently constructed SAM for Egypt 2008/09. The SAM segments the agricultural accounts by season and by irrigation scheme; Nile water- and groundwater-dependent as well as rain-fed agricultural activities. The simulations show that Egypt should manage potential reductions in the supply for Nile water with more efficient irrigation practice that secures higher productivity for Nile water, groundwater and irrigated land. The results suggests more ambitious plan to boost irrigation efficiency for summer rice in order to overweight any potential shrinkages in its output and exports. Furthermore, even doubling all non-conventional water resources is not sufficient to compensate the potential adverse impacts of Nile water losses. This highlights the importance of irrigation efficiency for the Egyptian economy |
| Keywords: | Water Availability, Agriculture Productivity, Nile Basin, Computable General Equilibrium (CGE) Models, Crop Production/Industries, Environmental Economics and Policy, Q25, D58, C68., |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:212601&r=env |
| By: | Zinnia Mukherjee (Department of Economics, Simmons College, USA); Dipak K. Dey (Department of Statistics, College of Liberal Arts and Sciences, University of Connecticut, USA); Rangan Gupta (Department of Economics, University of Pretoria) |
| Abstract: | The formation of hypoxic water zones in marine ecosystems across the world is a growing concern among marine scientists and regulatory agencies that focus on marine resource management. In the United States, a number of water systems such as the Gulf of Mexico, Long Island Sound, and the Chesapeake Bay experience hypoxic conditions annually. Nutrient rich water with excessive nitrogen content is widely recognized as a key anthropogenic cause that lead to development of hypoxic zones. While the dissolved oxygen level indicates the presence of hypoxic water conditions, at any given time, the aquatic nitrogen concentration indicates the possibility of formation of hypoxic zones in future time periods. Hence, understanding the effects of both these variables on current and future fish population is important for improved water quality management and sustainability of marine resources. In this paper, we estimate the temporal effects of these two key variables on lobster harvest from three contiguous fishing zones in the Long Island Sound that vary in ambient water quality. We find there is no contemporaneous effect of these variables on harvest in both the zone that experience hypoxia and the two zone that do not. While there is some evidence of lagged effects of these variables on harvest, no systematic pattern emerges in these effects that distinguishes the hypoxic fishing zone with non-hypoxic zones. |
| Keywords: | hypoxia, temporal effects, dissolved oxygen, nitrogen, lobster, harvest |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:201627&r=env |
| By: | Rigoberto A. Lopez (University of Connecticut); Nataliya Plesha (University of Connecticut); Ben Campbell (University of Connecticut) |
| Abstract: | The northeastern region of the United States comprises 5 percent of the United States land mass but houses 20 percent of the population. Even within this relatively small, densely population area, agriculture, forestry and fisheries are important economic components at the household, state and regional levels. At the request of Farm Credit East, we conducted a study to document and ascertain the significance in the economies of eight northeastern states of the agriculture sector, defined broadly as including four Fs: farming, food, forestry and fisheries. As measured in the eight states under study using data from 2012, agriculture contributed $99.4 billion to regional total sales or $2,312 per resident and generated 474,482 jobs. |
| Keywords: | farming, economic impacts |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:zwi:outrep:35&r=env |
| By: | Malak-Rawlikowska, Agata; Majewski, Edward; Kobus, Pawel |
| Abstract: | The study focuses on the relations between landscape structure and composition, functions and benefits, and its contribution to the regional competitiveness understood as an ability to generate income, at the same time assuring employment and wellbeing of the society. The question is whether agricultural landscapes, through provision of ecosystem services could contribute to the development and competitiveness of the rural areas. The causal connections between landscape management, socio-economic benefits and mechanisms influencing the income level have been described and analyzed on the example of the case study region1 – Chlapowski Landscape Park in Poland. The Bayesian Belief Network method was applied for the analysis of the abovementioned problem. It was found that all considered landscape elements (fields, forests, shelterbelts, and water reservoirs) have a positive influence on regional competitiveness. Agricultural land (fields and permanent grasslands) have the strongest, positive impact on the competitiveness of the region resulting from provisioning ecosystem services. |
| Keywords: | Agricultural Landscape, Ecosystem Services, Regional Competitiveness, Bayesian Belief Network, Agricultural and Food Policy, Environmental Economics and Policy, Land Economics/Use, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:212220&r=env |
| By: | Eliasson, Jonas (KTH); Pyddoke, Roger (VTI); Swärdh, Jan-Erik (VTI) |
| Abstract: | We analyse distributional effects of four car-related tax instruments: an increase of the fuel tax, a new kilometre tax, an increased CO2-differentiated vehicle ownership tax, and a CO2-differentiated purchase tax on new cars. Distributional effects are analysed with respect to income, lifecycle category and several spatial dimensions. All the analysed taxes are progressive over most of the income distribution, but just barely regressive if the absolutely highest and lowest incomes are included. However, the variation within income groups is substantial; the fraction of the population who suffer substantial welfare losses relative to income is much higher in lower income groups. The two most important geographical distinctions are between rural and urban areas (including even small towns), and between central cities and satellites/suburbs; these spatial dimensions matter much more for distributional effects than for example whether an area is remote or sparsely populated. |
| Keywords: | Distributional effects; Equity effects; Fuel tax; Car ownership tax |
| JEL: | D63 H23 R48 |
| Date: | 2016–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ctswps:2016_011&r=env |
| By: | Stauss, Wolfgang; Braun, Jurgen; Mergenthaler, Marcus |
| Abstract: | Protein is of vital importance for the nutrition of animals and humans. A growing world population is dependent on the efficient supply of proteins. It is also dependent on sustainable production of proteins since environmental impacts associated with animal-based protein provision are widely perceived as surpassing ecological boundaries in the long run. Connecting this perception with consumer demand for regional products the study computes regional animal demand and feed crop supply of crude protein in the state of North Rhine-Westphalia. The results show that self-sufficiency of crude protein for livestock farming cannot be reached by increasing high-protein legume cultivation alone: either a third of pig- or cattle-livestock would have to be reduced. Alternatively, plant-based sources like sunflower proteins could serve as substitutes – these, however, do need further research in order to reach comparable functionality and market potential as soy products. |
| Keywords: | crude protein, legumes, self-efficiency, sunflower, Crop Production/Industries, Livestock Production/Industries, D5, Q11, Q17, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:212059&r=env |
| By: | Wang, Tong; Park, Seong; Jin, Hailong |
| Abstract: | A variety of water conservation policy alternatives have been promoted to extend the economic life of Ogallala Aquifer in the Southern Great Plains. However, few studies have been done to analyze whether these policies provide profit-driven farmers with incentives to save water. In this paper we adopt a theoretical approach to analyze farmer’s optimal response when facing following policy alternatives, including 1) irrigation technology subsidy, 2) increased water cost, 3) unit subsidies for water saving; and 4) subsidies on water-conservative crop. Our findings suggest that optimal water conservation policies vary by region. Specifically, the switching to higher efficiency technology should occur in a preventative stage for the water saving to occur. Similarly, an increase in water cost promotes water saving only when water resource is relatively abundant. In regions where groundwater already poses a constraint, the unit subsidy for actual water saved and price subsidy for water-conservative crops are more effective in achieving the water conservation goal. |
| Keywords: | Ogallala Aquifer, groundwater conservation, economic incentive, irrigation technology, subsidy, water cost, Environmental Economics and Policy, Farm Management, Production Economics, Resource /Energy Economics and Policy, Q25, Q28, Q56, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea16:229904&r=env |
| By: | Matthews, Nicolette; Grove, Bennie |
| Abstract: | Probabilistic programming are typically used to model economic-environmental trade-when environmental outcomes are stochastic. Application of available probabilistic programming techniques such as the upper partial moment (UPM) is problematic due to the conservativeness of the estimated the compliance probability. Conservatively estimated trade-offs may result in overregulation of agricultural production practices. Although the conservativeness of the UPM is usually acknowledged by researchers, none of the researchers investigated the size of conservativeness of the UPM. An alternative non-linear trade-off model specification is developed to investigate the conservativeness of the UPM. Meta data from the validated Soil Water Balance (SWB) crop growth simulation model for irrigated maize in South Africa is used to show that the UPM is very conservative in the estimation of the trade-offs comparing to the new method. However, the size of the conservativeness is very situation-specific and varies due to differences in fixed resources, fertilizer application methods and conservativeness measures. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:212450&r=env |
| By: | Kanik, Zafer; Kucuksenel, Serkan |
| Abstract: | One of the main goals stated in the proposals for the Common Fisheries Policy (CFP) reform was achieving maximum sustainable yield (MSY) for all European fisheries. In this paper, we propose a fishing rights allocation mechanism or management system, which specifies catch limits for individual fishing fleets to implement MSY harvesting conditions in an age-structured bioeconomic model. An age-structured model in a single species fishery with two fleets having perfect or imperfect fishing selectivity is studied. If fishing technology or gear selectivity depends on the relative age composition of the mature fish stock, fixed harvest proportions, derived from catchability and bycatch coefficients, is not valid anymore. As a result, not only the age-structure and fishing technology but also the estimated level of MSY is steering the allocation of quota shares. The results also show that allocation of quota shares based on historical catches or auctioning may not provide viable solutions to achieve MSY. |
| Keywords: | Bioeconomics; Mechanism design; Fisheries management; Age-structured population model; Maximum sustainable yield; Common Fisheries Policy |
| JEL: | D04 D78 Q22 |
| Date: | 2016–04–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:70535&r=env |
| By: | Konsam Manitombi Devi |
| Abstract: | The World Commission on Environment and Development WCED (Popularly known as the Brundtland Commission) 1987 defined sustainable developemt as “meet the needs of the present without compromising the ability of future generations to meet their own needs”. As far as the role of library in education for sustainable development is concerned this can be interpreated to mean the continuous process of change in which the library resources and technological advancements are utilized for storage, retrieval and communication of information to satisfy the needs of the present as well as future generations. Key words: Library Sustainable developement, ESD, EESD |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:vor:issues:2016-03-04&r=env |
| By: | Mazorodze, Brian Tavonga |
| Abstract: | Livelihood strategies in developing countries typically depend on agricultural activities. Nonetheless, climate change, recurrent droughts and floods are contributing to crop failures in many developing countries yet beekeeping has proven to offer a valuable adaptive strategy. Against this background, the study sought to examine the role of apiculture as an alternative livelihood strategy in Honde Valley. Using the feasible generalised least squares (FGLS) technique and cross sectional data collected on 80 households selected through multistage sampling technique, gender of household head, access to credit, dependency ratio, level of education and size of land owned are found to be significant factors explaining rural income in Honde Valley. Turning to the variable of enquiry, the results of the analysis of covariance (ANCOVA) indicate that the mean per capita income for apiculture farmers is found to be significantly higher than that of non-apiculture farmers. Against this background, apiculture can be used as an alternative livelihood for the rural community. The study contributes in identifying alternative livelihood strategies in developing countries like Zimbabwe. |
| Keywords: | Apiculture, Beekeeping, rural income, poverty alleviation, Honde Valley, Crop Production/Industries, Food Security and Poverty, |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:ags:miscpa:212254&r=env |
| By: | Kris Bachus (HIVA, KU Leuven) |
| Abstract: | This research paper presents a conceptual framework to analyze the reporting and mapping of climate finance. In particular, the paper discusses the most relevant concepts and definitions with respect to climate-related development finance. It presents a comprehensive overview of the most important methodologies used to report and map climate finance and discusses the strengths and weaknesses of each methodology. In a second paper (due in 2016), we will use this conceptual framework to draw up a comprehensive overview of the current reporting on official climate-related development finance in Belgium, distinguishing between the different levels of governance. Based on this mapping exercise, we will then identify potential gaps in the reporting of official climate-related development finance in Belgium. |
| Keywords: | climate finance, climate flows, climate-related development finance, climate change, UNFCCC |
| JEL: | F35 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:nam:befdwp:4&r=env |
| By: | Iorga, Alin Angelin |
| Abstract: | Packaging, packaging waste and agriculture are separate, distinct concepts for Romania in 2015; they seem to have nothing in common. By bringing these words together and thoroughly studying the areas which they represent, we noticed that they are the starting point in defining a new concept: "Agriculture Waste Packaging". This concept is in fact a new issue which Romania will have to face and can bring great harm to the country's natural heritage no later than in 2020. |
| Keywords: | packaging, packaging waste, packaging waste from agriculture |
| JEL: | O13 Q53 R00 |
| Date: | 2015–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:70297&r=env |
| By: | Peri, Massimo |
| Abstract: | Many studies have analysed agricultural market instability under different perspectives, but little attention has been given to the effect of climate oscillations on agricultural price volatility. Climate variability, and in particular the extreme events, can alter agricultural yields and stocks, causing relevant effects on prices. In this paper we used a Volatility Impulse Response Function (VIRF) from a multivariate GARCH model (Hafner and Herwartz, 2006) to investigate the effects of climate shocks variability (El Niño/Southern Oscillation - ENSO) on corn and soybeans prices volatility from 1960 to 2014. Results highlighted how extreme ENSO events influence price volatility with different dynamic between corn and soybeans. |
| Keywords: | El Niño/Southern Oscillation (ENSO), Corn, Soybeans, MGARCH, VIRF, Crop Production/Industries, Environmental Economics and Policy, Q02, Q54, G15, C58, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:212623&r=env |
| By: | Mirzabaev, Alisher; Tsegai, Daniel |
| Abstract: | Higher weather volatility may be reflected in higher incidences of weather shocks. Weather shocks could potentially affect the supply of agricultural commodities and their prices. In this study, the effects of weather shocks on agricultural commodity prices in Central Asia are investigated at the provincial scale using monthly data for the period of 2000-2010. The study uses an estimation method, where the idiosyncratic components of the variables are analyzed using Feasible Generalized Least Squares (FGLS) panel regression in the presence of cross-sectional dependence and serial autocorrelation. The analysis indicates that weather volatility and, especially, the fluctuations in the availability of irrigation water have statistically significant effects on wheat prices in Central Asia. Weather shocks, involving lower than usual temperatures and precipitation amounts, could create favorable conditions for higher wheat prices in the region. |
| Keywords: | weather and price shocks, Central Asia, Agricultural and Food Policy, Environmental Economics and Policy, O13, Q11, Q54, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:212466&r=env |
| By: | Kirui, Oliver; Mrzabaev, Alisher |
| Abstract: | Land degradation is a serious impediment to improving rural livelihoods in eastern Africa. This paper identifies land degradation patterns based on Land Use Cover Change and Normalized Difference Vegetation Index decline, compares the costs of action against inaction against land degradation using the Total Economic Value approach in four countries – Ethiopia, Kenya, Malawi and Tanzania. Results show that land degradation hotspots cover about 51%, 41%, 23% and 22% of the terrestrial areas in Tanzania, Malawi, Ethiopia and Kenya respectively. The cost of land degradation between 2001-2009 periods is about US$2 billion in Malawi, US$11 billion in Kenya, US$18 billion in Tanzania and US$35 billion in Malawi. These represent about 5%, 7%, 14% and 23%, of GDP in Kenya, Malawi, Tanzania and Ethiopia respectively. The costs of action as compared to the costs of inaction represented only about 23.7%, 24.1%, 26.0% and 26.2% in Ethiopia, Kenya, Malawi and Tanzania. |
| Keywords: | Land Economics/Use, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:212007&r=env |
| By: | Bhavsar, Hiren; Baryeh, Kofi; Tegegne, Fisseha |
| Abstract: | This paper examines the general knowledge of consumers regarding organic food and determines their willingness to pay more for it. Data was collected on a random sample of grocery shoppers in the state of Tennessee. The study reveals most of the respondents had a fair knowledge of what organic food was. The number of respondents who had never purchased organic food was found to be only slightly higher than the number who purchase it. A binary logistic regression found income and Environmental concern to be factors that effectively determine willingness to pay more for organic food. |
| Keywords: | Organic food, Willingness to pay, Tennessee consumers, Agribusiness, Agricultural and Food Policy, Industrial Organization, L66, Q18, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea16:230010&r=env |
| By: | Yatang Lin |
| Abstract: | Are "greener" investments less efficient? This paper looks at the location choices by wind power investors. I measures the efficiency loss in this sector due to wrong project location and explore the factors contributing to it. Using extensive information on wind resources, transmission, electricity price and other restrictions that might affect the siting of wind farms, I calculate the predicted profitability of wind power projects for all the possible places across the contiguous US, use it as a counterfactual for profit-maximizing wind power investment and compare it to the actual placement of wind farms. |
| Keywords: | Spatial misallocation, renewable energy policies, productivity, green preferences |
| JEL: | R12 R38 Q42 Q48 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1424&r=env |
| By: | Tim Jackson; Peter Victor; Asjad Naqvi |
| Abstract: | Modern western economies (in the Eurozone and elsewhere) face a number of challenges over the coming decades. Achieving full employment, meeting climate change and other key environmental targets, and reducing inequality rank amongst the highest of these. The conventional route to achieving these goals has been to pursue economic growth. But this route has created two critical problems for modern economies. The first is that higher growth leads (ceteris parabis) to higher environmental impact. The second is that fragility in financial balances has accompanied relentless demand expansion. The prevailing global response to the first problem has been to encourage a decoupling of output from impacts by investing in green technologies (green growth). But this response runs the risk of exacerbating problems associated with the over-leveraging of households, firms and governments and places undue confidence in unproven and imagined technologies. An alternative approach is to reduce the pace of growth and to restructure economies around green services (post-growth). But the potential dangers of declining growth rates lie in increased inequality and in rising unemployment. Some more fundamental arguments have also been made against the feasibility of interest-bearing debt within a post-growth economy. The work described in this paper was motivated by the need to address these fundamental dilemmas and to inform the debate that has emerged in recent years about the relative merits of green growth and post-growth scenarios. In pursuit of this aim we have developed a suite of macroeconomic models based on the methodology of Post-Keynesian Stock Flow Consistent (SFC) system dynamics. Taken together these models represent the first steps in constructing a new macroeconomic synthesis capable of exploring the economic and financial dimensions of an economy confronting resource or environmental constraints. Such an ecological macroeconomics includes an account of basic macroeconomic variables such as the GDP, consumption, investment, saving, public spending, employment, and productivity. It also accounts for the performance of the economy in terms of financial balances, net lending positions, money supply, distributional equity and financial stability. This report illustrates the utility of this new approach through a number of specific analyses and scenario explorations. These include an assessment of the Piketty hypothesis (that slow growth increases inequality), an analysis of the ‘growth imperative’ hypothesis (that interest bearing debt requires economic growth for stability), and an analysis of the financial and monetary implications of green investment policies. The work also assesses the scope for fiscal policy to improve social and environmental outcomes. |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:feu:wfewop:y:2016:m:3:d:0:i:114&r=env |
| By: | Li, Na; Vyn, Richard; McEwan, Ken |
| Abstract: | This paper examines the impact of Ontario’s Greenbelt legislation, a land use policy that permanently protects over 1.8 million acres of land from non-agricultural development, on farmers’ exit and investment decisions. A farm-level panel data set for 32,512 farms in Ontario is used to perform two econometric estimations: a correlated random effects Probit model of farm exit and a dynamic unobserved effects Tobit model of farm investment. The Greenbelt policy is found to have influenced both farm exit and farm investment decisions, with the impact varying depending on location within the Greenbelt. In particular, the results indicate evidence of a negative impact on farm investment, which is contrary to one of the objectives of the Greenbelt policy. |
| Keywords: | Agricultural Finance, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:212049&r=env |
| By: | Thanakvaro Thyl de Lopez (University of Cambridge, Magdalene College, Cambridge CB3 0AG, UK.) |
| Abstract: | Founded in the ninth century, the city of Angkor lies at the heart of Khmer cultural heritage. Since 1995, the number of foreign visitors to the temples of Angkor has jumped from a few thousand a year to nearly a million. The neighbouring city of Siem Reap has experienced rapid growth in recent years and local infrastructure and services have struggled to keep up with the demands of international mass tourism. While it represents a significant source of foreign currency for Cambodia, mass tourism has increased pressure on Angkor's cultural and natural features, including water supply. This study of the impacts of tourism on local people involved face-to-face interviews of more than 400 souvenir vendors and 2,500 households residing in Angkor. It found that revenues from park entrance fees represent a unique opportunity to restore Angkor to a thriving city and provides a catalogue of useful and feasible community development projects that could be financed in this way. |
| Keywords: | National park, Cambodia |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:eep:pbrief:pb2016043&r=env |
| By: | Galioto, Francesco; Cuming, David; Raggi, Meri; Viaggi, Davide |
| Abstract: | In European agriculture, the changing environmental and institutional context is setting the path for the development of new technologies and relevant patterns of diffusion. This is particularly the case for irrigation practices. The present study explores new frontiers for optimizing the use of water resources in agriculture through “Precision Irrigation” (PI). The main purpose of the study is to develop a theoretical framework to assess the adoption of PI. This framework has been validated and integrated through a Delphi study involving a structured group of experts. The experts provided insights into where and when PI can be considered a promising innovation and regarding the actions that should be undertaken to overcome barriers to its diffusion. Thereafter, a methodology was designed in light of the economic theory of information. An empirical example is offered to illustrate the circumstances in which the adoption of PI is more likely to be of benefit according to crop growth and soil water balance model rules. The paper concludes with a discussion of the extent to which PI can be considered an instrument capable of meeting the main concerns addressed by the WFD and the new CAP reform. |
| Keywords: | Precision Irrigation, Value of Information, Adoption, Delphi Study, Agricultural and Food Policy, Q5, |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aiea15:207846&r=env |
| By: | Ernah (Institute Development and Agricultural Economics, Leibniz University Hannover) |
| Keywords: | Cost-Benefit Analysis,Palm Oil,Indonesia |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:eep:report:rr20160324&r=env |
| By: | Falconer, Lawrence L.; Buehring, Normie W.; Ebelhar, M. Wayne |
| Abstract: | The objective of this paper is to evaluate the economic returns and risk associated with alternative crop residue management and tillage strategies in two different locations in Mississippi over the 2012 to 2014 crop years. It was found that in the irrigated production systems employed at Stoneville, there was no difference in the burn versus no-burn treatments. At the dryland production site in Verona, the TerraTill-bedroll system appears to be a consistently high performer for corn production. For Verona, no consistent results seem to appear for soybean production between the alternate tillage systems. At the irrigated site in Stoneville, no tillage system for either corn or soybean production seems to be consistently superior in generating net returns above tillage systems and residue management system. |
| Keywords: | Tillage systems, Residue management, Farm Management, |
| Date: | 2016–02–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea16:229770&r=env |
| By: | Mitchell, Donna M.; Williams, Ryan Blake; Johnson, Phillip |
| Abstract: | As water resources from the Ogallala Aquifer continue to decline, alternative sources of water resources should be considered to extend the life of irrigated agriculture in the Southern High Plains. The Dockum is a minor aquifer located beneath the Ogallala at depths of up to 2,000 feet. The Dockum Aquifer may be a suitable water source for irrigation supplementation; however, the cost to pump from the Dockum may not be economically profitable due to deep pumping depths, poor water quality, and low well yields. Results show that in some areas of the Dockum, it may complement irrigation water from the Ogallala for water thirsty crops. |
| Keywords: | Dockum, optimization, Environmental Economics and Policy, Farm Management, Production Economics, Resource /Energy Economics and Policy, Q32, Q56, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea16:230069&r=env |
| By: | Fishman, Ram; Kishore, Avinash; Rothler, Yoav; Ward, Patrick S.; Jha, Shankar; Singh, R. K. P. |
| Abstract: | The imbalanced application of chemical fertilizers in India is widely blamed for low yields, poor soil health, pollution of water resources, and large public expenditures on subsidies. To address the issue, the government of India is investing in a large-scale, expensive program of individualizedsoil testing and customized fertilizer recommendations, with the hope that scientific information will lead farmers to optimize the fertilizer mix. We conducted a randomized controlled trial in the Indian state of Bihar in what we believe to be the first evaluation of the effectiveness of the program as currently implemented. We found no evidence of any impact of soil testing and customized fertilizer recommendations on actual fertilizer use or the willingness to pay for lacking nutrients (elicited using aBecker-DeGroot-Marschak mechanism). Several factors could be driving these results, including a lack of understanding, lack of confidence in the information’s reliability, or the costs of the recommended fertilizer mixes. We provide evidence that suggestslack of confidence is the main factor inhibiting farmers’ response |
| Keywords: | fertilizers, farm inputs, soil analysis, randomized controlled trial, Becker-DeGroot-Marschak mechanism, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1517&r=env |