nep-env New Economics Papers
on Environmental Economics
Issue of 2016‒11‒27
23 papers chosen by
Francisco S. Ramos
Universidade Federal de Pernambuco

  1. Barriers and opportunities for robust decision making approaches to support climate change adaptation in the developing world By Ajay Gajanan Bhave; Declan Conway; Suraje Dessai; David A. Stainforth
  2. Asian Giants' Fossil Fuel Dependence and the Challenge of Low Carbon Growth: Contrasting Performance of Clean Energy Development, Trade and Investment By Jain, Varinder
  3. Spatio-temporal statistical assessment of anthropogenic CO2 emissions from satellite data By Patrick Vetter; Wolfgang Schmid; Reimund Schwarze
  4. Regulation of air pollution from wood-burning stoves By Thomas Bue Bjørner; Jørgen Brandt; Lars Gårn Hansen; Martin Groth Hjelmsø; Marianne Nygaard Källstrøm
  5. Renewable energy drivers: a novel econometric approach By Olivier Damette
  6. Gone with the Wind; Estimating Hurricane and Climate Change Costs in the Caribbean By Sebastian Acevedo Mejia
  7. Trade Openness-Carbon Emissions Nexus: The Importance of Turning Points of Trade Openness for Country Panels By Shahbaz, Muhammad; Tavares, Samia; Ahmed, Khalid; Hammoudeh, Shawkat
  8. On a World Climate Assembly and the Social Cost of Carbon By Martin Weitzman
  9. The Impact of Bunker Risk Management on CO2 Emissions in Maritime Transportation Under ECA Regulation By Gu, Yewen; Wallace, Stein W.; Wang, Xin
  10. Green licenses and environmental corruption: a random matching model By Angelo Antoci; Simone Borghesi; Gianluca Iannucci
  11. Изследване на устойчивостта на земеделските стопанства в България By Bachev, Hrabrin
  12. Adaptation to climate change By Sam Fankhauser
  13. Устойчивото управление и доброволното разкриване на информация за екологичните дейности в организациятa (Sustainable management and voluntary disclosure of information about environmental activities of organizations) By Vasileva, Elka; Hristova, Juliya
  14. The dynamics of foreign direct investments in land and pollution accumulation By Simone Borghesi; Giorgia Giovannetti; Gianluca Iannucci; Paolo Russu
  15. Weather, climate and total factor productivity By Marco Letta; Richard S.J. Tol
  16. Climate change perception and system of rice intensification (SRI) impact on dispersion and downside risk: a moment approximation approach By Mintewab Bezabih; Remidius Ruhinduka; Mare Sarr
  17. Weather Events and Welfare in the Philippine Households By Dacuycuy, Connie B.
  18. Mining matters: Natural resource extraction and local business constraints By Ralph de Haas; Steven Poelhekke
  19. Gone with the wind: valuing the visual impacts of wind turbines through house prices By Stephen Gibbons
  20. Do Benefits from Dynamic Tariffing Rise? Welfare Effects of Real-Time Pricing under Carbon-Tax-Induced Variable Renewable Energy Supply By Christian Gambardella; Michael Pahle; Wolf-Peter Schill
  21. The analysis of convergence in ecological indicators: An application to the Mediterranean fisheries By M. Grazia Pennino; José María Bellido; David Conesa; Marta Coll; Emili Tortosa-Ausina
  22. At the very edge of a storm: The impact of a distant cyclone on Atoll Islands By Taupo, Tauisi; Noy, Ilan
  23. Ecological Fiscal Transfers in Europe: Evidence-based design options of a transnational scheme By Droste, N.; Ring, I.; Santos, R.; Kettunen, M.

  1. By: Ajay Gajanan Bhave; Declan Conway; Suraje Dessai; David A. Stainforth
    Abstract: Climate change adaptation is unavoidable, particularly in developing countries where the adaptation deficit is often larger than in developed countries. Robust Decision Making (RDM) approaches are considered useful for supporting adaptation decision making, yet case study applications in developing countries are rare. This review paper examines the potential to expand the geographical and sectoral foci of RDM as part of the repertoire of approaches to support adaptation. We review adaptation decision problems hitherto relatively unexplored, for which RDM approaches may have value. We discuss the strengths and weaknesses of different approaches, suggest potential sectors for application and comment on future directions. We identify that data requirements, lack of examples of RDM in actual decision-making, limited applicability for surprise events, and resource constraints are likely to constrain successful application of RDM approaches in developing countries. We discuss opportunities for RDM approaches to address decision problems associated with urban socio-environmental and water-energy-food nexus issues, forest resources management, disaster risk management and conservation management issues. We examine potential entry points for RDM approaches through Environmental Impact Assessments and Strategic Environmental Assessments, which are relatively well established in decision making processes in many developing countries. We conclude that despite some barriers, and with modification, RDM approaches show potential for wider application in developing country contexts.
    Keywords: Adaptation decision making; Uncertainty; Robust decision making approaches; Developing countries; Barriers; opportunities and entry points
    JEL: J50 G32
    Date: 2016–09–29
    URL: http://d.repec.org/n?u=RePEc:ehl:lserod:68318&r=env
  2. By: Jain, Varinder
    Abstract: With sluggish growth in alternate technologies, economic growth across the world has remained largely fuelled by hydro-carbons whose burning has contributed to the menace of global warming. In such a situation, this study focusing on the economies of China, India and Japan – the three Asian Giants, aims at not only ascertaining their fossil fuel dependence but it also addresses its environmental implications. Moreover, it contrasts their attainments in clean energy development. An analysis of trade in climate smart technologies reflects the nature of mutual cooperation among these giants. Similarly, an analysis of recent trends in investment financing corroborates their pursuit of low carbon growth agenda which is a major cause of concern in most of the international climate change negotiations.
    Keywords: Fossil Fuels, Oil, Coal, Natural Gas, Clean Energy, Solar Energy, Wind Energy, Renewable Energy Investment, Climate Smart Technologies Trade, Asian Giants, India, China, Japan
    JEL: F15 Q20 Q41 Q42
    Date: 2016–11–17
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:75121&r=env
  3. By: Patrick Vetter (Faculty of Business Administration and Economics, European University Viadrina, Frankfurt (Oder)); Wolfgang Schmid (Faculty of Business Administration and Economics, European University Viadrina, Frankfurt (Oder)); Reimund Schwarze (Europa University Viadrina and Helmholtz Centre for Environmental Research (UFZ))
    Abstract: The analysis of sources and sinks of CO2 is a dominant topic in diverse research fields and in political debates these days. The threat of climate change fosters the research efforts in the natural sciences in order to quantify the carbon sequestration potential of the terrestrial ecosystem and CO2 mitigation negotiations strengthens the need for a transparent, consistent and verifiable Moni- toring, Verification and Reporting infrastructure. This paper provides a spatio-temporal statistical modeling framework, which allows for a quantification of the Net Ecosystem Production and of anthropogenic sources, based on satellite data for surface CO2 concentrations and source and sink connected covariates. Using spatial and temporal latent random effects, that act as space-time varying coefficients, the complex dependence structure can be modeled adequately. Finally, spatio-temporal smoothed estimates for the sources and sinks can be used to provide dynamic maps on 0.5 × 0.5 grid for the Eurasien area in intervals of 16 days between September 2009 and August 2012. Finally, the self-reported CO2 emissions within the UNFCCC can be compared with the model results.
    Keywords: Anthropogenic CO2 emissions, Net Ecosystem Production, Linear mixed effects, Spatio- temporal model
    Date: 2016–11
    URL: http://d.repec.org/n?u=RePEc:euv:dpaper:24&r=env
  4. By: Thomas Bue Bjørner (Danish Economic Councils); Jørgen Brandt (Department of Environmental Science, Aarhus University); Lars Gårn Hansen (Department of Food and Resource Economics, University of Copenhagen; Danish Economic Councils); Martin Groth Hjelmsø (Danish Economic Councils); Marianne Nygaard Källstrøm (Danish Economic Councils)
    Abstract: Air pollution is a major global challenge. Emissions from residential wood-burning stoves make a surprisingly large contribution to total air pollution related health costs. In Denmark, emissions from wood-burning stoves are calculated to cause almost 400 premature deaths each year within Denmark and additionally about 300 premature deaths in other parts of Europe. In this article, we present an integrated assessment of the net social benefit of different schemes for regulating wood-burning stoves including bans and taxes. The assessment uses high resolution air pollution emission inventory, and atmospheric dispersion and exposure models to estimate the health effects of imposing regulations on residential wood-burning. This is combined with an economic stove investment and use model to simulate reactions to regulations and evaluate compliance costs. We find that there are large net welfare gains from most types of regulation, but the largest gains result from imposing a differentiated tax or a general ban on older stoves. The results for Denmark suggest that there could be substantial welfare gains from regulating residential wood-burning stoves in other countries as well.
    Keywords: wood-burning stoves, particle emission, cost-benefit, regulation, integrated assessment
    JEL: I18 Q48 Q53 Q58
    Date: 2016–11
    URL: http://d.repec.org/n?u=RePEc:foi:wpaper:2016_11&r=env
  5. By: Olivier Damette (BETA-CNRS Université de Lorraine)
    Abstract: The paper analyses the impact of some macroeconomic drivers (carbon emissions per capita, energy consumption, income, innovation, energy dependency, European directives...) on the use of renewable energy sources (Wind, Hydro, Biomass...) in a set of 24 European countries over the 1990-2015 period.We show that previous literature failed to take into account both non stationary issues and non linearity in panel econometric frameworks. Using very recent non stationary panel econometric methods (panel unit root tests with breaks and common factors, cointegrations tests with cross sectional dependence and breaks), we focus on socioeconomic and political factors and show that the main factors explaining the renewable dynamics are income per capita (income effect: a higher income is associated to more easy investments in Renewables and a proxy of high environmental protection in line with the Kuznets Curve literature), energy dependency (comparative advantage effect in energy resources: low resources and high dependency are associated to high renewables use) and the level of oil prices (however, no evidence of a substitution effect between fossils and renewables). In contrary, we do not find evidence of environmental concerns explaining the growth of renewables use since we show a negative and statistically significant relationship between CO2 emissions and the log of the renewable share in countries. In addition, we show that energy consumption/use signal is positive and statistically significant and robust. Using high levels of energy to drive the growth would lead to promoting RE (probably a mean effect, using quantiles we expect a negative sign for very high levels of energy consumption). Further work is in progress to investigate non linear effects using PSTR (Panel Smooth Transition Regression) models. Endogeneity (CO2, Energy Use) issues should also be taken into account by simultaneous models and Granger causality tests. Finally, introducing political policies as other drivers of renewables growth would also be an improvement of the existing work.
    Keywords: energy economics, renewables, cointegration, panel
    JEL: Q42 Q43 C33
    URL: http://d.repec.org/n?u=RePEc:sek:iacpro:5306976&r=env
  6. By: Sebastian Acevedo Mejia
    Abstract: This paper studies the economic costs of hurricanes in the Caribbean by constructing a novel dataset that combines a detailed record of tropical cyclones’ characteristics with reported damages. I estimate the relation between hurricane wind speeds and damages in the Caribbean; finding that the elasticity of damages to GDP ratio with respect to maximum wind speeds is three in the case of landfalls. The data show that hurricane damages are considerably underreported, particularly in the 1950s and 1960s, with average damages potentially being three times as large as the reported average of 1.6 percent of GDP per year. I document and show that hurricanes that do not make landfall also have considerable negative impacts on the Caribbean economies. Finally, I estimate that the average annual hurricane damages in the Caribbean will increase between 22 and 77 percent by the year 2100, in a global warming scenario of high CO2 concentrations and high global temperatures.
    Keywords: Climatic changes;Caribbean;Pacific Island Countries;Greenhouse gas emissions;Climate policy;Parameter estimation;Econometric models;Hurricane, tropical cyclone, climate change, climate impact, Caribbean.
    Date: 2016–10–14
    URL: http://d.repec.org/n?u=RePEc:imf:imfwpa:16/199&r=env
  7. By: Shahbaz, Muhammad; Tavares, Samia; Ahmed, Khalid; Hammoudeh, Shawkat
    Abstract: This paper explores the relationship between trade openness and CO2 emissions by incorporating economic growth as an additional and potential determinant of this relationship for three groups of 105 high, middle and low income countries. We apply the Pedroni (1999) and Westerlund (2007) panel cointegration tests and find that the three variables are cointegrated in the long run. Trade openness impedes environmental quality for the global, high income, middle and low income panels but the impact varies in these diverse groups of countries. The panel VECM causality results highlights a feedback effect between trade openness and carbon emissions at the global level and the middle income countries but trade openness Granger causes CO2 emissions for the high income and low income countries. Policy implications are also provided.
    Keywords: Trade Openness, CO2 Emissions, Causality
    JEL: Q5
    Date: 2016–11–09
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:75133&r=env
  8. By: Martin Weitzman
    Abstract: This paper postulates the conceptually useful allegory of a futuristic “World Climate Assembly” (WCA) that votes for a single worldwide price on carbon emissions via the basic democratic principle of one-person one-vote majority rule. If this WCA framework can be accepted in the first place, then voting on a single internationally- binding minimum carbon price (the proceeds from which are domestically retained) tends to counter self-interest by incentivizing countries or agents to internalize the externality. I attempt to sketch out the sense in which each WCA-agent's extra cost from a higher emissions price is counter-balanced by that agent's extra benefit from inducing all other WCA-agents to simultaneously lower their emissions in response to the higher price. The first proposition of this paper derives a relatively simple formula relating each emitter's single-peaked most-preferred world price of carbon emissions to the world “Social Cost of Carbon” (SCC). The second and third propositions relate the WCA-voted world price of carbon to the world SCC. I argue that the WCA-voted price and the SCC are unlikely to differ sharply. Some implications are discussed. The overall methodology of the paper is a mixture of mostly classical with some behavioral economics.
    JEL: F51 H41 K23 Q54 Q58
    Date: 2016–11
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:22813&r=env
  9. By: Gu, Yewen (Dept. of Business and Management Science, Norwegian School of Economics); Wallace, Stein W. (Dept. of Business and Management Science, Norwegian School of Economics); Wang, Xin (Department of Industrial Economics and Technology Management, Norwegian University of Science and Technology)
    Abstract: The shipping industry carries over 90 percent of the world’s trade, and is hence a major contributor to CO2 and other airborne emissions. As a global effort to reduce air pollution from ships, the implementation of the ECA (Emission Control Areas) regulations has given rise to the wide usage of cleaner fuels. This has led to an increased emphasis on the management and risk control of maritime bunker costs for many shipping companies. In this paper, we provide a novel view on the relationship between bunker risk management and CO2 emissions. In particular, we investigate how different actions taken in bunker risk management, based on different risk aversions and fuel hedging strategies, impact a shipping company’s CO2 emissions. We use a stochastic programming model and perform various comparison tests in a case study based on a major liner company. Our results show that a shipping company’s risk attitude on bunker costs have impacts on its CO2 emissions. We also demonstrate that, by properly designing its hedging strategies, a shipping company can sometimes achieve noticeable CO2 reduction with little financial sacrifice.
    Keywords: Bunker risk management; Maritime bunker management; CO2 emissions; Stochastic programming; ECA; Fuel hedging; Sailing behavior
    JEL: C44 C60
    Date: 2016–11–16
    URL: http://d.repec.org/n?u=RePEc:hhs:nhhfms:2016_017&r=env
  10. By: Angelo Antoci (University of Sassari, Italy); Simone Borghesi (University of Siena, Italy); Gianluca Iannucci (University of Florence, Italy)
    Abstract: This paper studies environmental corruption via a random matching evolutionary game between a population of firms and a population of bureaucrats who have to decide whether to release a “green” license to the firms. A firm obtains the license if the bureaucrat checks that it complies with environmental regulations, otherwise it is sanctioned. The model assumes that there are two types of bureaucrats (honest and dishonest), two types of firms (compliant and non-compliant), and two possible crimes (corruption and extortion). Corruption occurs when a dishonest bureaucrat accepts a bribe from a non-compliant firm, while extortion occurs when a dishonest bureaucrat claims a bribe from a compliant firm. When there is no dominance of strategies, we show that there exist two bistable regimes, in which two attractive stationary states exist, and two regimes with an internal stable equilibrium, corresponding to the mixed strategy Nash equilibrium of the one-shot static game, surrounded by closed trajectories. From comparative statics analysis performed on the latter two dynamic regimes, it emerges that policy instruments may help the Public Administration reduce both corruption and extortion, although increasing sanctions and detection probability do not always get the desired results.
    Keywords: Bureaucratic corruption, Evolutionary games, Environmental regulations, Economics of crime
    JEL: C73 D21 D73 K42 Q52
    Date: 2016–11
    URL: http://d.repec.org/n?u=RePEc:srt:wpaper:1016&r=env
  11. By: Bachev, Hrabrin
    Abstract: Evaluation of sustainability of agricultural farms is among the most topical academic and practical (farm, agri-business, policies forwarded) issues. Despite that there are practically no studies on overall, economic, social, ecological, etc. sustainability of farms in general and holdings of different type in Bulgaria during EU CAP implementation. This paper presents a holistic framework for defining and assessing sustainability of farms for the specific conditions of Bulgarian agriculture as well as results of the first large-scale study on integral, governance, economic, social, and environmental sustainability of Bulgarian farms. Initially, a framework for assessing farm sustainability is outlined which is based on incorporation of the interdisciplinary methodologies of New Institutional Economics, and Sustainable Development. That holistic framework includes a system of appropriate principles, criteria, indicators, and reference values for evaluating the individual aspects and the integral sustainability of farms in the specific Bulgarian conditions. After that an assessment is made on the overall, governance, economic, social, and environmental sustainability levels of Bulgarian farms in general and holdings of different juridical type, size, specialisation, and location.
    Keywords: sustainability of farms, definition, assessment, Bulgarian farms
    JEL: Q1 Q12 Q18 Q5 Q56 Q57
    Date: 2016–09–01
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:75032&r=env
  12. By: Sam Fankhauser
    Abstract: This article reviews the economic and analytical challenges of adaptation to climate change. Adaptation to climate risks that can no longer be avoided is an important aspect of the global response to climate change. Humans have always adapted to changing climatic conditions, and there is growing, if still patchy, evidence of widespread adaptation behaviour. However, adaptation is not “autonomous†, as sometimes claimed. It requires knowledge, planning, coordination and foresight. There are important adaptation gaps, behavioural barriers and market failures, which hold back effective adaptation and require policy intervention. We identify the most urgent adaptation priorities, areas where delay might lock in future vulnerability, and outline the decision-making challenges of adapting to an unknown future climate. We also highlight the strong inter-linkages between adaptation and economic development, pointing out that decisions on industrial strategy, urban planning and infrastructure investment all have strong bearing on future vulnerability to climate change. We review the implications of these links for adaptation finance, and what the literature tells us about the balance between adaptation and mitigation.
    Date: 2016–11
    URL: http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp255&r=env
  13. By: Vasileva, Elka; Hristova, Juliya
    Abstract: В доклада се разглеждат проблемите, свързани с доброволното разкриване на информация за екологичните дейности в организациите. Анализират се изискванията на заинтересованите страни (клиенти, местната общност, общински власти, доставчици и др.) от надеждност и прозрачност на информацията за дейностите на организацията по отношение на околната среда. Идентифицирани са възможностите за "зелена" комуникация през призмата на редица стандарти за устойчиво управление.
    Keywords: sustainable management, information exchange, environmental information, "green" communications, standards
    JEL: M14
    Date: 2016–10–17
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:75201&r=env
  14. By: Simone Borghesi (University of Siena, Italy); Giorgia Giovannetti (University of Florence, Italy); Gianluca Iannucci (University of Florence, Italy); Paolo Russu (University of Sassari, Italy)
    Abstract: Following the recent increase of foreign direct investments in land, this paper studies their possible effects on the development of a local economy. To this aim, we use a two-sector model (external and local) with heterogeneous agents: external investors and local land owners. We assume that both sectors are negatively affected by pollution, but only the external sector is polluting. The local government can tax the external sector’s production activities to finance environmental defensive expenditures. We first examine the equilibria that emerge in the model from the dynamics of pollution and physical capital, and then investigate the conditions for the coexistence of the two sectors and the impact of the external sector on the welfare of the local population. Using numerical simulations, we show that a welfare-improving growth path may occur only if the pollution tax is high enough and the impact of the external sector on pollution is low enough. Otherwise, a welfare-reducing growth path may occur, with foreign direct investments decreasing the revenues of local land owners.
    Keywords: Two-sector model, land grabbing, environmental negative externalities, pollution
    JEL: D62 F21 O15 O41 Q50
    Date: 2016–11
    URL: http://d.repec.org/n?u=RePEc:srt:wpaper:1116&r=env
  15. By: Marco Letta (Sapienza Università di Roma); Richard S.J. Tol (University of Sussex; Vrije Universiteit Amsterdam; Tinbergen Institute; CESifo)
    Abstract: Recently it has been hypothesized that climate change will affect total factor productivity growth. Given the importance of TFP for long-run economic growth, if true this would entail a substantial upward revision of current impact estimates. Using macro TFP data from a recently developed dataset in Penn World Tables, we test this hypothesis by directly examining the nature of the relationship between annual temperature shocks and TFP growth rates in the last decades. The results show a negative relationship only in poor countries. While statistically significant, the estimate upper bound is a reduction of TFP growth is less than 0.1%, i.e., climate change will decelerate but not reverse economic growth. This finding increases concerns over the distributional issues of future impacts, and restates the case for complementarity between climate policy and poverty reduction.
    Keywords: weather variability; climate change; total factor productivity; economic growth
    JEL: O44 O47 Q54
    Date: 2016–11
    URL: http://d.repec.org/n?u=RePEc:sus:susewp:10216&r=env
  16. By: Mintewab Bezabih; Remidius Ruhinduka; Mare Sarr
    Abstract: This article assesses the consequential risk impacts of the recent system of rice intensification (SRI) implemented in the Morogoro region of Tanzania, one of the largest Semi-Arid regions, using household and farm plot level data extended to incorporate farmers’ perceptions of climate change. The analysis implements a moment approximation approach that accounts for the impacts of the technology on the first three moments of rice yields and total household income. Using a endogenous switching regressions model, we find that perception of climate change is a key driver for SRI adoption and impacts primarily the moments of income. Furthermore, the average effect of SRI on dispersion and skewness are positive. In particular, the large increase in income variability is not compensated by the increase in skewness (i.e., a reduction in downside risk), which may explain why SRI adoption rate remains low in Tanzania. The study also highlights the importance of climate perceptions and moisture-conserving technology in risk management in Semi-Arid areas. The theme of the study also falls within the objectives of the PRISE project (Pathways to Resilience in Semi-Arid Economies) as it brings together institutional intervention (in the form of SRI provision), land productivity and vulnerability (in the form of farmers’ perceptions of climatic factors).
    Date: 2016–11
    URL: http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp256&r=env
  17. By: Dacuycuy, Connie B.
    Abstract: Using fixed effects estimators to remove unobserved heterogeneity and instrumental variable technique to address the endogeneity of income, this paper analyzes the effect of weather events on welfare in the Philippines. It finds that, one, treating income as an exogenous variable underestimates the effect of income on the household's resource allocation. Two, there are more expenditure shares for which income is endogenous using the tropical cyclone data than using the heat index deviation data as instruments. Three, households choose cheaper foods but just as nutritious when they are frequently hit by tropical cyclones. Four, the presence of children affects most of the food items, and it has the biggest effect on non-alcoholic beverages, such as juice and coffee, while the presence of the elderly affects only a few expenditure items, such as education and medical care. Based on the results, specific recommendations are forwarded. In broader terms, the study points to the desirability of greater forms of investment in resilience against weather events and climate change. At the household level, poverty is a binding constraint to good investment in resilience against weather events and the government has to continue its efforts toward poverty reduction. To this end, the government should ensure that the Department of Social Welfare and Development internal and external convergence strategy is successfully implemented.
    Keywords: Philippines, weather events, welfare, fixed effects, Department of Social Welfare and Development
    Date: 2016
    URL: http://d.repec.org/n?u=RePEc:phd:rpseri:dp_2016-34&r=env
  18. By: Ralph de Haas; Steven Poelhekke
    Abstract: We estimate the impact of local mining activity on the business constraints experienced by 22,150 firms across eight resource-rich countries. We find that with the presence of active mines, the business environment in the immediate vicinity (
    Keywords: Mining; natural resources; business environment
    JEL: L16 L25 L72 O12 O13 Q30
    Date: 2016–11
    URL: http://d.repec.org/n?u=RePEc:dnb:dnbwpp:533&r=env
  19. By: Stephen Gibbons
    Abstract: This study provides quantitative evidence on the local benefits and costs of wind farm developments in England and Wales, focussing on their visual environmental impacts. In the tradition of studies in environmental, public and urban economics, housing sales prices are used to reveal local preferences for views of wind farm developments. Estimation is based on quasi-experimental research designs that compare price changes occurring in places where wind farms become visible, with price changes in appropriate comparison groups. These groups include places close to wind farms that became visible in the past, or where they will become operational in the future and places close to wind farms sites but where the turbines are hidden by the terrain. All these comparisons suggest that wind farm visibility reduces local house prices, and the implied visual environmental costs are substantial.
    Keywords: housing prices; environment; wind farms; infrastructure; energy
    JEL: Q4 Q51 R3
    Date: 2015–07
    URL: http://d.repec.org/n?u=RePEc:ehl:lserod:62880&r=env
  20. By: Christian Gambardella; Michael Pahle; Wolf-Peter Schill
    Abstract: Common intuition holds that retail real-time pricing (RTP) of electricity demand should become more beneficial in markets with high variable renewable energy (VRE) supply mainly due to increased price volatility. Using German market data, we test this intuition by simulating long-run electricity market equilibria with carbon-tax-induced VRE investment and real-time price responsive and nonresponsive consumption behavior. We find that the potential welfare gains from RTP are only partially explained by price volatility and are rather driven by opposing wholesale price effects caused by the technology portfolio changes from carbon taxation. Consequently, annual benefits from RTP actually change nonmonotonously with the carbon tax level, implying that increasing RTP at relatively high VRE shares can be both less and much more beneficial than without VRE supply. Nonetheless, as zero marginal cost supply becomes abundant with VRE entry, allocative efficiency increasingly depends on exposing more and more consumers to RTP
    Keywords: Real-time pricing; Electricity; Variable renewables; Carbon taxation; Welfare analysis; Partial equilibrium modeling
    Date: 2016
    URL: http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1621&r=env
  21. By: M. Grazia Pennino (Instituto Español de Oceanografía, Centro Oceanográfico de Murcia, Murcia, Spain); José María Bellido (Dpt. of Statistics and Operational Research, Universitat de València, Valencia, Spain); David Conesa (Dpt. of Statistics and Operational Research, Universitat de València, Valencia, Spain); Marta Coll (UMR MARBEC-IRD, LMI ICEMASA, University of Cape Town, South Africa & ICM-CSIC, Barcelona, Spain); Emili Tortosa-Ausina (IVIE, Valencia and Department of Economics, Universitat Jaume I, Castellón, Spain)
    Abstract: Ecological indicators are increasingly used to examine the evolution of natural ecosystems and the impacts of human activities. Assessing their trends to develop comparative analyses is essential. Here, we introduce the analysis of convergence, a novel approach to evaluate the dynamic of ecological indicators’ trajectories and predict their behavior in the long-term, Specifically, we use a non-parametric estimation of Gaussian Kernel density functions and transition probability matrix integrated in the R software. We validate the performance of our methodology through a practical application to three different ecological indicators to study whether Mediterranean countries converge towards similar fisheries practice. We focus on how distributions evolve over time for the Marine Trophic Index, the Expansion Factor and the Fishing in Balance Index during 1950-2010. Results show that Mediterranean countries persist in their fishery behaviors throughout the time series, although a tendency towards similar negative effects on the ecosystem is apparent in the long-term. This methodology can be easily reproduced with different indicators and/or ecosystems in order to analyze dynamics.
    Keywords: Convergence analysis, non-parametric density estimation, transition probability matrix, ecosystem approach to fisheries management, ecological indicators, Mediterranean Sea
    JEL: C14 Q22 Q57
    Date: 2016
    URL: http://d.repec.org/n?u=RePEc:jau:wpaper:2016/22&r=env
  22. By: Taupo, Tauisi; Noy, Ilan
    Abstract: The intensity of cyclones in the Pacific is predicted to increase and sea levels are predicted to rise, so a small atoll nation like Tuvalu can serve as the ‘canary in the mine’ pointing to the new risks that are emerging because of climatic change. In Tuvalu, households are acutely vulnerable to storm surges caused by cyclones even if the cyclone itself passes very far away (in this case about a 1000km). Based on a survey we conducted in Tuvalu, we quantify the impacts of cyclone Pam (March 2015) on households, and the determinants of these impacts in terms of hazard, exposure, vulnerability and responsiveness. Lastly, we constructed hypothetical policy scenarios, and calculated the estimated loss and damage they would have been associated with – a first step in building careful assessments of the feasibility of various disaster risk reduction policies.
    Keywords: Atoll Islands, Cyclones, Natural disasters,
    Date: 2016
    URL: http://d.repec.org/n?u=RePEc:vuw:vuwecf:5410&r=env
  23. By: Droste, N.; Ring, I.; Santos, R.; Kettunen, M.
    Abstract: Ecological Fiscal Transfers (EFT) have recently gained attention as a promising instrument to provide incentives for nature conservation addressing public authorities. In parallel, both the EU and different European countries are exploring new mechanisms to mobilise funding to support biodiversity conservation. So far, existing EFT mechanisms in Europe have been implemented at the national level in Portugal and, to some extent, in France while in Brazil EFT schemes exist between the state and local level. In this paper we develop a proposal for an EFT design within the supranational context of the EU and assess its potential effects with evidence-based estimates. To provide such a knowledge base for a potential supranational EU-EFT implementation, we i) provide a theoretical underpinning, and an analytical synthesis of the current experiences both with the uptake of EFT and the implementation of EU's nature conservation legislation (i.e. the Habitats and Bird Directives), ii) propose a model for an EFT implementation within the existing EU funding framework for N2k financing which is built upon both quantitative and qualitative conservation indicators, iii) compute fiscal effects of our suggested model and analyse how the resulting payments would be (spatially) distributed among European regions, and iv) discuss the model outcomes in terms of ecological effectiveness, distributive effects, and cost-efficiency. Thereby we aim at stimulating a debate about how to better integrate ecological public functions within multi-level and supra-national governance structures.
    Keywords: Ecological Fiscal Transfers,European Union,Natura 2000 network,policy advice,spatial econometrics
    JEL: C31 H77 H87 P48 R12 Q57
    Date: 2016
    URL: http://d.repec.org/n?u=RePEc:zbw:ufzdps:102016&r=env

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