2024-03-28T12:40:41Z http://oai.repec.org/oai.php
oai:RePEc:kap:enreec:v::y::i::d:10.1007_s10640-020-00434-z2020-06-14RePEc:kap:enreec
article Non-participation and Heterogeneity in Stated: A Double Hurdle Latent Class Approach for Climate Change Adaptation Plans and Ecosystem Services Abstract We introduce a double hurdle latent class approach to model choice experiments, where serial non-participants and clustered preference patterns are present. The proposed approach is applied to a recent stated preference study in which the residents of the Eastern Shore of Virginia answer choice questions about alternative coastal climate change adaptation plans. While the double hurdle latent class model avoids self-contradictory assumptions, estimates and tests show that, compared with an unrestricted latent class model, it achieves a significantly better statistical fit and maintains the capability to link the heterogeneity of participants’ preferences to their attributes. Moreover, the double hurdle latent class model also provides important implications in how to conduct welfare analysis based on different behavioral patterns of different groups, which leads to nontrivial changes in welfare measures. The empirical results highlight that certain ecosystem services may increase the willingness to pay for coastal climate change adaptation plans. Built assets, Choice experiment, Double hurdle model, Mixture model, Natural assets, Serial non-participation, Valuation, Resilience, Adaptation, Sea-level rise Environmental and Resource Economics 1 33 http://link.springer.com/10.1007/s10640-020-00434-z text/html Abstract Zhenshan Chen zhenshan.chen@uconn.edu University of Connecticut Stephen K. Swallow University of Connecticut Ian T. Yue Delaware Department of Natural Resources and Environmental Control
oai:RePEc:kap:enreec:v::y::i::d:10.1007_s10640-020-00432-12020-06-14RePEc:kap:enreec
article Assessing the Role of Institutions in Limiting the Environmental Externalities of Economic Growth Abstract Emissions of pollutants tend to be procyclical as they generally increase with economic growth. However, as government policy has a role to play in the mitigation of the environmental consequences of economic activity, the quality of institutions may influence the procyclicality of pollution and reduce the environmental cost of economic growth. Based on the assumption that changes in emissions are stronger at earlier stages of development, we develop a non-linear framework and confirm first the presence of income-related threshold effects in the relationship between pollution (CO$$_2$$2 and greenhouse gas emissions) and growth, for a panel of 142 countries over a period spanning from 1960 to 2017. We also find that institutional quality influences this relationship, as the quality of institutions lowers the value of the threshold and the degree of procyclicality of emissions. These results bring therefore evidence that higher institutional quality can attenuate the environmental externalities of economic growth. CO $$_2$$ 2 emissions, GHG emissions, Economic growth, Institutions Environmental and Resource Economics 1 17 C33 O44 Q56 Q58 http://link.springer.com/10.1007/s10640-020-00432-1 text/html Abstract Stephane Dées stephane.dees@banque-france.fr Banque de France and Univ. Bordeaux
oai:RePEc:kap:enreec:v:78:y:2021:i:2:d:10.1007_s10640-020-00535-92021-02-11RePEc:kap:enreec
article Pandemics, Mitigation Measures, and Environment Abstract The paper studies the effects of mitigation measures on environment during a pandemic. Various mitigation measures such as business closures have been imposed to reduce health risks. Such measures also limit economic activities and reduce emissions. Measures disproportionately affect the contact-intensive sectors such as the leisure and hospitality industry, as their economic activities involve more person-to-person interactions. Thus, the extent of emission reduction depends on the severity of a measure and the size of the contact-intensive sectors. Using data on business and restaurant closures, school closures and bans on gatherings across 50 U.S. states during the Covid-19 pandemic, an empirical analysis shows that emissions decrease more in states with a more stringent measure and a larger share of the contact-intensive sectors. Pandemics, Mitigation measures, Contact-intensive sectors, Emissions 2 2021 78 2 6 Environmental and Resource Economics 353 374 Q5 H1 D6 http://link.springer.com/10.1007/s10640-020-00535-9 text/html Abstract Kangoh Lee klee@sdsu.edu San Diego State University
oai:RePEc:kap:enreec:v:78:y:2021:i:2:d:10.1007_s10640-020-00529-72021-02-11RePEc:kap:enreec
article Heterogeneity in Farmers’ Social Preferences and the Design of Green Payment Schemes Abstract We examine how social preferences affect the workings of voluntary green payment schemes and show that a regulator could use facilitation services along with a social reward to generate better ecological outcome at less cost by exploiting a farmer’s social preferences to gain a green social-image/reputation. To motivate our model, we first present the results of an incentivized elicitation survey in Scotland which shows that there is a social norm of biodiversity protection on private land among farmers. Moreover, the results of a discrete choice experiment reveal that farmers are willing to give up economic rents for more publicity of their conservation activities; this confirms the relevance of reputational gain in the context of green payment schemes. Our model assumes two types of farmers, green and brown, with a green farmer taking more biodiversity protection actions than a brown farmer. We design a menu of contracts that offers both monetary incentives and non-monetary incentives (a facilitation service with social reward) to induce both type of farmers to join the scheme and to exert first-best levels (i.e., symmetric information levels) of action. Results show that under asymmetric information the regulator can implement the symmetric information equilibrium levels of biodiversity protection actions with only non-monetary incentives for the green farmer and only monetary incentives for the brown farmer. This implies that a regulator can ensure better environmental outcomes, at a lower cost, by exploiting farmers’ social preferences and by offering non-monetary incentives. Mechanism design, Social norm, Esteem, Motivation crowding, Signalling, Public goods, Agriculture 2 2021 78 2 1 Environmental and Resource Economics 201 226 D03 Q57 Q58 D82 http://link.springer.com/10.1007/s10640-020-00529-7 text/html Abstract Prasenjit Banerjee prasenjit.banerjee@manchester.ac.uk University of Manchester Rupayan Pal Indira Gandhi Institute of Development Research (IGIDR) Ada Wossink University of Manchester James Asher University of Manchester
oai:RePEc:kap:enreec:v:78:y:2021:i:2:d:10.1007_s10640-020-00531-z2021-02-11RePEc:kap:enreec
article Rent Seeking over Tradable Emission Permits Abstract The allocation of emission permits at no cost during the establishment of a cap-and-trade program creates opportunities for rent-seeking. I examine the consequences of such rent-seeking by exploiting an unusual feature of the UK’s permit allocation procedure in Phase 1 of the EU’s CO $$_{2}$$ 2 Emissions Trading Scheme, whereby it is possible to observe both a firm’s actual permit allocation as well as an earlier, technocratically-based provisional allocation that was never implemented. Firms had the opportunity to appeal their provisional allocation. I find that a firm’s financial connections to members of the House of Commons strongly predict its post-appeal allocation. Even after controlling for the provisional allocation, along with industry and financial characteristics, a connection to an additional member is associated with a significant increase in a firm’s actual permit allocation. Using results from a contest-theoretic framework, I estimate the welfare loss from rent-seeking to be over 100 million euros—a significant amount relative to the abatement costs firms incurred to reduce emissions. Rent seeking, Environmental economics, Tradable permits, Political connections 2 2021 78 2 3 Environmental and Resource Economics 257 285 D72 H23 Q58 http://link.springer.com/10.1007/s10640-020-00531-z text/html Abstract Ashwin Rode aarode@uchicago.edu University of Chicago
oai:RePEc:kap:enreec:v:78:y:2021:i:2:d:10.1007_s10640-020-00530-02021-02-11RePEc:kap:enreec
article Enforcement Federalism: Comparing the Effectiveness of Federal Punishment versus State Punishment Abstract Responsibility for enforcing environmental protection laws often falls on both federal and state agencies. We investigate whether enforcement and monitoring taken by the federal agency—the U.S. Environmental Protection Agency (EPA)—and enforcement and monitoring actions taken by U.S. state environmental agencies differentially affect the compliance behavior of pollution point sources regulated under the U.S. Clean Water Act. Our results demonstrate that federal inspections are more effective than state inspections, yet state fines are more effective than federal fines, at inducing compliance with Clean Water Act-imposed discharge limits. Enforcement, Monitoring, Inspections, Compliance, Wastewater 2 2021 78 2 2 Environmental and Resource Economics 227 255 K32 K42 Q53 http://link.springer.com/10.1007/s10640-020-00530-0 text/html Abstract Dietrich Earnhart Earnhart@ku.edu University of Kansas Lana Friesen University of Queensland
oai:RePEc:kap:enreec:v:78:y:2021:i:2:d:10.1007_s10640-020-00532-y2021-02-11RePEc:kap:enreec
article Farmers Follow the Herd: A Theoretical Model on Social Norms and Payments for Environmental Services Abstract The economic literature on Payments for Environmental Services (PES) has studied extensively the behavioural factors that prevent farmers from signing PES contracts, even when the payments exceed the expected opportunity costs. This article provides a theoretical model of the role played by the interplay of descriptive and injunctive social norms in farmers’ decisions. When they choose to contribute voluntarily to an environmental public good, farmers may be driven by descriptive norms akin to conformity (do as the majority of their peers) as well as by injunctive norms (in line with what society expects them to do), which are the equivalent of a social injunction to act in favour of the environment. The interactions between these two social norms can yield multiple equilibria, depending on the relative weight of the descriptive norm (sensitivity to conformism) and of the injunctive norm (sensitivity to moral pressure) in the utility functions of farmers. More generally, our model can explain why social groups are sometimes trapped in low public-good-contribution equilibria, even when public subsidies to contributors are high. We make policy recommendations to help reach higher contribution equilibria, with a specific focus on the farm policy context. Payments for environmental services, Social norms, Voluntary contribution to a public good, Behaviour, Farmers 2 2021 78 2 4 Environmental and Resource Economics 287 306 Q18 D03 http://link.springer.com/10.1007/s10640-020-00532-y text/html Abstract Philippe Coent p.lecoent@brgm.fr Univ. Montpellier Raphaële Préget raphaele.preget@inrae.fr INRAE, CEE-M, Univ. Montpellier, CNRS, INRAE, Institut Agro Sophie Thoyer sophie.thoyer@inrae.fr INRAE, CEE-M, Univ. Montpellier, CNRS, INRAE, Institut Agro
oai:RePEc:kap:enreec:v:78:y:2021:i:2:d:10.1007_s10640-020-00534-w2021-02-11RePEc:kap:enreec
article Environmental Taxation and Import Demand for Environmental Goods: Theory and Evidence from the European Union Abstract In this paper, we study the impact of environmental taxation on trade in environmental goods (EGs). Using a trade model in which demand for and supply of EGs are endogenous, we show that the relationship between environmental taxation and demand for EGs follows a bell-shaped curve. Above a cutoff tax rate, a higher tax rate can reduce bilateral trade in EGs because there are too many low-productivity EG suppliers. Based on trade data from 1995 to 2012 across the EU-27 countries, our empirical results are in accordance with the predictions of our model when we use the Asia-Pacific Economic Cooperation (APEC) list of EGs. We find that environmental taxation (measured as the ratio of environmental tax revenoe to GDP) has a monotonically positive impact on the number of trading partners. Furthermore, we show that if countries were to apply an environmental tax rate equal to $$3.96\%$$ 3.96 % (e.g., the tax rate maximizing international trade in EGs), then trade in EGs across the EU-27 members would experience an increase of 25.33 percentage points. The results are mixed when we analyse the EGs on the OECD list. While the results for the the number of trading partners are confirmed when we use this list, there is no effect of environmental taxation on import demand. Firm heterogeneity, Environmental goods, Trade, Environmental taxation, European union F12, F18, Q58 2 2021 78 2 5 Environmental and Resource Economics 307 352 http://link.springer.com/10.1007/s10640-020-00534-w text/html Abstract Carl Gaigné carl.gaigne@inrae.fr INRA Lota D. Tamini lota.tamini@eac.ulaval.ca Laval University
oai:RePEc:kap:enreec:v:78:y:2021:i:2:d:10.1007_s10640-021-00537-12021-02-11RePEc:kap:enreec
article Correction to: Worshipping the Tiger: Modeling Non‑use Existence Values of Wildlife Spiritual Services The article was published with several textual and typographical errors introduced during proofing. 2 2021 78 2 7 Environmental and Resource Economics 375 379 http://link.springer.com/10.1007/s10640-021-00537-1 text/html Abstract Adrian A. Lopes alopes@aus.edu American University of Sharjah Shady S. Atallah satallah@illinois.edu University of Illinois Urbana-Champaign
oai:RePEc:kap:enreec:v:10:y:1997:i:2:p:189-2052020-08-08RePEc:kap:enreec
article Towards More Efficient Compensation Programmes for Tourists' Benefits From Agriculture in Europe This paper covers nonmarket services provided by farmers for recreational purposes in several Central European regions. A regionally specified general equilibrium model is used to derive the efficiency conditions for a competitive equilibrium to guarantee a Pareto optimal outcome. Moreover, we present green agricultural compensation programmes in Europe and their assessment from an economic perspective. The empirical analysis focuses on tourists' willingness to pay (WTP) for the provision of agricultural landscape-enhancing services in Austria. A comparison of these measures with current voluntary compensation payments made to farmers for the preservation of an agricultural countryside in several Austrian tourism communities suggests that the hypothetical contingent valuation (CV) results represent a valid order of magnitude for the value of recreation-related agricultural services. As far as agricultural policy is concerned, environmental improvement, the stabilization of agricultural income levels, diminishing intrasectoral income differences, and the development of economically disadvantaged rural regions can be expected from directly subsidizing farmers for the provision of countryside amenities. Copyright Kluwer Academic Publishers 1997 landscape-enhancing agricultural activities, nonmarket services, contingent valuation (CV), agricultural compensation programmes, 2 1997 10 9 Environmental and Resource Economics 189 205 http://hdl.handle.net/10.1023/A:1026480123406 text/html Access to full text is restricted to subscribers. Franz Hackl Gerald Pruckner
oai:RePEc:kap:enreec:v:11:y:1998:i:3:p:289-3002020-08-08RePEc:kap:enreec
article Towards a Disequilibrium Theory of Endogenous Economic Growth This paper discusses the need for a new approach to economic growth theory. The standard theory of growth-in-equilibrium driven by exogenous, uncaused, productivity gains has an implication that is both unjustified and perverse from a policy perspective: that government intervention of any kind can only introduce constraints and reduce option space, thus decreasing potential growth. It is argued that growth theory should (1) acknowledge the importance of natural resources, especially fossil fuels, as a driver of past and present economic growth, (2) incorporate an explicit recognition that growth is a consequence of technological innovation, especially radical innovation, that often responds to natural resource scarcities or other societal needs and (3) explicitly reflect the fact that the important (i.e. scarce) factors of production in economics can and do change over time, i.e. from a rural ‘cowboy’ economy of the past to an urbanized ‘spaceship’ economy of the future. In short, it should reflect the fact that ‘necessity is the mother of invention’. The first and third of these modifications have been proposed before, but not in combination. The third seems to be new. Copyright Kluwer Academic Publishers 1998 cowboy economy, economic growth, exergy, spaceship economy, technological progress, 3 1998 11 4 Environmental and Resource Economics 289 300 http://hdl.handle.net/10.1023/A:1008239127479 text/html Access to full text is restricted to subscribers. Robert Ayres ayres@insead.fr
oai:RePEc:kap:enreec:v:6:y:1995:i:1:p:87-982020-08-08RePEc:kap:enreec
article On the efficiency of environmental instruments in a spatial economy This paper develops an efficiency criterion to evaluate environmental policy instruments in a spatial economy. We call an environmental policy regime at the regional level efficient if it guarantees not only an efficient distribution of emission permits within a region, but also an efficient locational pattern of mobile firms across the regions of a federation. Using marketable pollution rights or emission taxes, efficiency in this broad sense can only be achieved if revenues of regional environmental agencies are not transferred to regional firms. Direct controls neither support an efficient allocation of emission rights within a region nor locational efficiency of firms. Copyright Kluwer Academic Publishers 1995 Regional environmental policy, locational efficiency, distribution of emission tax revenues, 1 1995 6 7 Environmental & Resource Economics 87 98 http://hdl.handle.net/10.1007/BF00691413 text/html Access to full text is restricted to subscribers. Raimund Krumm Dietmar Wellisch
oai:RePEc:kap:enreec:v:31:y:2005:i:4:p:477-4992020-08-08RePEc:kap:enreec
article Context-Sensitive Benefit Transfer Using Stated Choice Models: Specification and Convergent Validity for Policy Analysis benefit transfer, choice experiment, convergent validity, land management, policy decision, stated choice, land conservation, 4 2005 31 08 Environmental & Resource Economics 477 499 http://hdl.handle.net/10.1007/s10640-005-3366-x text/html Access to full text is restricted to subscribers. Yong Jiang Stephen Swallow swallow@uri.edu Michael Mcgonagle
oai:RePEc:kap:enreec:v:61:y:2015:i:3:p:365-3832020-08-08RePEc:kap:enreec
article On the Provision of Public Goods with Probabilistic and Ambiguous Thresholds Many natural systems involve thresholds that, once triggered, imply irreversible damages for the users. Although the existence of such thresholds is undisputed, their location is highly uncertain. We explore experimentally how threshold uncertainty affects collective action in a series of threshold public goods games. Whereas the public good is always provided when the exact value of the threshold is known, threshold uncertainty is generally detrimental for the public good provision as contributions become more erratic. The negative effect of threshold uncertainty is particularly severe when it takes the form of ambiguity, i.e. when players are not only unaware of the value of the threshold, but also of its probability distribution. Early and credible commitment helps groups to cope with uncertainty. Copyright Springer Science+Business Media Dordrecht 2015 Cooperation, Experiment, Public good, Threshold uncertainty, Ambiguity, C72, C92, H41, Q54, 3 2015 61 7 Environmental and Resource Economics 365 383 http://hdl.handle.net/10.1007/s10640-014-9796-6 text/html Access to full text is restricted to subscribers. Astrid Dannenberg ad2901@columbia.edu Andreas Löschel loeschel@zew.de Gabriele Paolacci gpaolacci@rsm.nl Christiane Reif reif@zew.de Alessandro Tavoni a.tavoni@lse.ac.uk
oai:RePEc:kap:enreec:v:10:y:1997:i:4:p:405-4132020-08-08RePEc:kap:enreec
article WTO Ministerial Conference in Singapore: Environmental Diversity Versus Harmonization 4 1997 10 12 Environmental and Resource Economics 405 413 http://hdl.handle.net/10.1023/A:1018367513889 text/html Access to full text is restricted to subscribers. Harmen Verbruggen Onno Kuik
oai:RePEc:kap:enreec:v:63:y:2016:i:2:d:10.1007_s10640-015-9935-82020-08-08RePEc:kap:enreec
article The Cost of Mediterranean Sea Warming and Acidification: A Choice Experiment Among Scuba Divers at Medes Islands, Spain Abstract A choice experiment is undertaken to elicit preferences of scuba divers in the Marine Protected Area of Medes Islands (Spain). This is the first non-market valuation study of a typical Mediterranean habitat, the Coralligenous, which is characterized by high biodiversity, geomorphologic complexity and iconic species like gorgonians. This habitat is not only very attractive for scuba diving, but is also threatened by climate change and ocean acidification, which is our motivation for undertaking this valuation study. Choice attributes include the number of divers on a diving trip, underwater landscape, presence of jellyfish species, expected state of gorgonians, and price of a dive. Results of multinomial and random parameter logit models indicate a decrease in the attractiveness of Coralligenous areas for scuba diving as a result of both environmental pressures. Estimates of welfare values show that the local extinction of gorgonians had the highest negative effect on utility equivalent to a cost of €60 per dive, followed by abundance of stinging jellyfish with a cost of €26 per dive. Choice probabilities for the selection of different dive experiences indicate the highest rejection rates for the combined sea warming and acidification scenarios. Choice experiment, Coralligenous, Gorgonians, Jellyfish, Mediterranean Sea, Ocean acidification, Scuba diving, Sea warming 2 2016 63 2 5 Environmental and Resource Economics 289 311 http://link.springer.com/10.1007/s10640-015-9935-8 text/html Abstract Luís C. Rodrigues luis.rodrigues@uab.es Universitat Autònoma de Barcelona ENT Environment and Management Jeroen C. J. M. Bergh Universitat Autònoma de Barcelona ICREA VU University Amsterdam Maria L. Loureiro Universidade de Santiago de Compostela Paulo A. L. D. Nunes UNEP – United Nations Environment Programme Sergio Rossi Universitat Autònoma de Barcelona
oai:RePEc:kap:enreec:v:61:y:2015:i:1:p:37-702020-08-08RePEc:kap:enreec
article Carbon Footprint Taxes We analyze whether a carbon consumption tax is logistically feasible. We consider a carbon footprint tax (CFT), which would be modeled after a credit-method value added tax. The basis for the tax would be a product’s carbon footprint, which includes all of the emissions released during production of the good and its inputs as well as any greenhouse gases latent in the product. Our analysis suggests that a pure CFT, requiring the calculation of the carbon footprint of every individual product, may be prohibitively costly. However a hybrid CFT seems economically feasible. The hybrid CFT would give firms the option to either calculate the carbon footprint of their outputs—and have their products taxed based on those footprints—or use product-class specific default carbon footprints as the tax basis, thereby saving on calculation costs. Because the CFT would be levied on all goods consumed domestically, the CFT would keep domestic firms on an even footing with those producing in countries without active climate policy, protecting competitiveness and reducing leakage. Copyright Springer Science+Business Media Dordrecht 2015 Carbon footprint tax, Climate change, World Trade Organization, Default footprints, 1 2015 61 5 Environmental and Resource Economics 37 70 http://hdl.handle.net/10.1007/s10640-013-9749-5 text/html Access to full text is restricted to subscribers. Carol McAusland carol.mcausland@ubc.ca Nouri Najjar nouri.najjar@alumni.ubc.ca
oai:RePEc:kap:enreec:v:7:y:1996:i:4:p:307-3322020-08-08RePEc:kap:enreec
article The value of health benefits from ambient air quality improvements in Central and Eastern Europe: An exercise in benefits transfer This study is an initial effort to estimate one important category of benefits of environmental improvements in Central and Eastern Europe (CEE), those related to the effects of air pollution on human health. Our estimates are derived from data on ambient air quality in selected CEE locations, together with a model that links these ambient conditions to physical impacts on health and attaches economic values (in dollar terms) to these impacts. Given data limitations, our focus here is on three pollutants: particulates (PM), sulfur dioxide (SO 2 ), and lead (Pb). Our data set includes ambient concentrations for these pollutants in four CEE countries: Bulgaria, Hungary, Poland, and Ukraine. Given the ambient data, dose-response functions taken from the clinical and epidemiological literature in the U.S., Canada, and Western Europe are used to generate estimates of the change in physical effects. These effects then are given an economic value by applying two approaches for scaling unit valuation figures applicable to the U.S. A Monte Carlo model is constructed to propagate the uncertainties of the dose-response functions and unit values to obtain confidence intervals on the total benefits from pollutant reductions in each country. We examine scenarios where the CEE countries improve ambient conditions for the pollutants in question to meet European Community (EC) standards and then compare these scenarios to ones involving uniform percentage ambient reductions across locations in each country. Copyright Kluwer Academic Publishers 1996 air quality, particulates, sulfur dioxide, lead, Monte Carlo, benefits transfer, 4 1996 7 6 Environmental and Resource Economics 307 332 http://hdl.handle.net/10.1007/BF00369622 text/html Access to full text is restricted to subscribers. Alan fnKrupnick Kenneth fnHarrison Eric fnNickell Michael fnToman
oai:RePEc:kap:enreec:v:30:y:2005:i:2:p:239-2422020-08-08RePEc:kap:enreec
article Book Review: Johan Rockström, Caroline Figuères and Cecilia Tortajada, eds. Rethinking Water Management: Innovative Approaches to Contemporary Issues, London: Earthscan, 242 pp. £19.95, ISBN: 1853839949 2 2005 30 02 Environmental & Resource Economics 239 242 http://hdl.handle.net/10.1007/s10640-004-1133-z text/html Access to full text is restricted to subscribers. Jacob Burke Jacob.Burke@fao.org
oai:RePEc:kap:enreec:v:19:y:2001:i:1:p:23-362020-08-08RePEc:kap:enreec
article Rethinking Productivity: Why has Productivity Focussed on Labour Instead of Natural Resources? The contribution of natural resources and ecosystems to economic processes still remains under-assessed by market evaluation and productivity analysis. Following the historical lines of the classical productivity debate ranging from the French Physiocrats to early neoclassical growth theories, the productivity concept underwent a gradual transformation from its previous understanding based on natural resources and other environmental factors to its contemporary narrow notion. This paper claims that the course of the classical debate has shaped the scope of predominant contemporary analysis. Except for some very recent findings, multifactor productivity largely focusses on a two-factor model. Material Flow Analysis (MFA) provides a useful step for widening the measurement and notion of productivity. Copyright Kluwer Academic Publishers 2001 material flow analysis, measurement, natural resources, productivity, 1 2001 19 5 Environmental and Resource Economics 23 36 http://hdl.handle.net/10.1023/A:1011106527578 text/html Access to full text is restricted to subscribers. Raimund Bleischwitz raimund.bleischwitz@wupperinst.org
oai:RePEc:kap:enreec:v:38:y:2007:i:3:p:373-3902020-08-08RePEc:kap:enreec
article Environmental participation in the U.S. sulfur allowance auctions Clean Air Act, Emissions trading, Environmental organizations, Sulfur allowances, Q5, 3 2007 38 11 Environmental and Resource Economics 373 390 http://hdl.handle.net/10.1007/s10640-007-9079-6 text/html Access to full text is restricted to subscribers. Debra Israel disrael@isugw.indstate.edu
oai:RePEc:kap:enreec:v:61:y:2015:i:1:p:91-1142020-08-08RePEc:kap:enreec
article Time Discounting and the Overexploitation of Coral Reefs The incentive to overexploit a fishery resource is thought to exist if the resource owner’s discount rate is sufficiently higher than the biological productivity of the targeted fish stock. Coral reef fisheries are extensively overexploited worldwide, but the discount rates of reef fishers are largely unknown, and there is little information about how discount rates relate to the exploitation status of fisheries. We address these two research gaps for 48 small-scale reef fisheries around the world. We use a life history based method to derive fishery level intrinsic growth rates, and then apply fisheries economics theory to investigate the compatibility of 2 different discount rates (official and private) with the exploitation status of reef fisheries. We find that official discount rates that are normally used for policy making appear to be too low to fully reflect the short term outlook of reef fishers. Instead, our inferred annual average private discount rate of 107 % for fishers may better reflect the general overexploited state of reef fisheries. Our results indicate that in order to improve the chances of success, fisheries policies, which affect local fishers, may need to be evaluated using private discount rates rather than the currently used official discount rates. Copyright Springer Science+Business Media Dordrecht 2015 Conservation, Coral reef fisheries, Discount rates , Fisheries sustainability, Time discounting, 1 2015 61 5 Environmental and Resource Economics 91 114 http://hdl.handle.net/10.1007/s10640-013-9674-7 text/html Access to full text is restricted to subscribers. Louise Teh l.teh@fisheries.ubc.ca Lydia Teh lydia.teh@fisheries.ubc.ca U. Sumaila r.sumaila@fisheries.ubc.ca William Cheung w.cheung@fisheries.ubc.ca
oai:RePEc:kap:enreec:v:63:y:2016:i:4:d:10.1007_s10640-014-9826-42020-08-08RePEc:kap:enreec
article Tradable Set-Aside Requirements (TSARs): Conserving Spatially Dependent Environmental Amenities Abstract Land conversion patterns can conflict with endangered species protection by fragmenting the landscape. Incentive mechanisms can help mitigate the threat of habitat fragmentation by aggregating landowner conservation decisions across the landscape. The optimal conservation strategy for endangered species can target the most connected habitat cluster as an initial starting point, and then expand the conservation patch to maximize connectivity. Herein we present an incentive mechanism, the tradable set-aside requirements (TSARs), designed to target the low cost contiguous conservation landscape and share the burden of conservation among landowners. In the lab, we examine the performance of two land use conservation policies: TSARs, and the TSARs combined with an agglomeration bonus. Evaluated by economic and biological measures of efficiency, we find that TSARs, relative to a command and control policy, increases patch size and habitat connectivity within the landscape. Additionally, combining TSARS with the agglomeration bonus increases biological efficiency (habitat connectivity and patch size within the landscape) but at a price—higher opportunity cost. TSARs with the agglomeration bonus can be more cost-effective than a TSARs only policy for species sensitive to large core habitat requirements and landscape connectivity. Mechanism design, Conservation, Tradable set-aside requirements, Agglomeration bonus, Experimental economics 4 2016 63 4 3 Environmental and Resource Economics 719 744 http://link.springer.com/10.1007/s10640-014-9826-4 text/html Abstract Gregory M. Parkhurst gregoryparkhurst@weber.edu Weber State University Jason F. Shogren jramses@uwyo.edu University of Wyoming Thomas Crocker tcrocker@uwyo.edu University of Wyoming
oai:RePEc:kap:enreec:v:64:y:2016:i:2:d:10.1007_s10640-014-9864-y2020-08-08RePEc:kap:enreec
article Determinants of the Price-Premium for Green Energy: Evidence from an OECD Cross-Section Abstract Using data from a survey of households in 11 OECD countries, this paper investigates the determinants of preferences for a completely green residential electricity system. Three important questions are addressed: (i) how much are households willing to pay to use only renewable energy? (ii) does willingness-to-pay (WTP) vary significantly across household groups and countries? and (iii) what drives the decision to enter the (hypothetical) market for green energy and, given entry, what drives the level of WTP? The analysis here differs from previous studies on green energy in two ways: first, data and analyses are comparable across countries and second, a comprehensive attempt is made to understand 0 WTP, and to accommodate—using a censored quantile regression (CQR) framework—unobserved heterogeneity. The survey data indicate a low WTP, at 11–12 % of current electric bill. This study also addresses a key question: how important is income for understanding WTP, relative to more “attitudinal” determinants? The effect of income overall appears ambiguous, with Tobit-like models indicating that income is not significant while the CQR indicates that income exerts a significant effect near the center of the distribution of WTP. Across all frameworks used, a key determinant of WTP appears to be environmental attitudes, particularly membership in an environmental organization. Green electricity, Willingness-to-pay, Censoring, Quantile regression, Renewable energy 2 2016 64 6 2 Environmental and Resource Economics 173 204 Q42 Q51 C24 C21 http://link.springer.com/10.1007/s10640-014-9864-y text/html Abstract Chandra Kiran B. Krishnamurthy chandra.kiran@econ.umu.se Umeå University Royal Swedish Academy of Sciences Bengt Kriström Bengt.Kristrom@slu.se SLU Umeå
oai:RePEc:kap:enreec:v:53:y:2012:i:1:p:73-952020-08-08RePEc:kap:enreec
article Socioeconomic Impacts of Public Forest Policies on Heterogeneous Agricultural Households Nepal has a long history of returning public forests to local people as part of its community forestry programme. In principle the community forestry programme is designed to address both environmental quality and poverty alleviation. However, concern has been expressed that forest policies emphasise environmental conservation, and that this has a detrimental impact on the use of community forests in rural Nepal where households require access to public forest products to sustain livelihoods. To study the effect of government policies on forest use, an economic model of a typical small community of economically heterogeneous households in Nepal was developed. The model incorporates a link between private agriculture and public forest resources, and uses this link to assess the socioeconomic impacts of forest policies on the use of public forests. Socioeconomic impacts were measured in terms of household income, employment and income inequality. The results show that some forest policies have a negative economic impact, and the impacts are more serious than those reported by other studies. This study shows that existing forest policies reduce household income and employment, and widen income inequalities within communities, compared to alternative policies. Certain forest policies even constrain the poorest households’ ability to meet survival needs. The findings indicate that the socioeconomic impacts of public forest policies may be underestimated in developing countries unless household economic heterogeneity and forestry’s contribution to production are accounted for. The study also demonstrates that alternative policies for managing common property resources would reduce income inequalities in rural Nepalese communities and lift incomes and employment to a level where even the poorest households could meet their basic needs. Copyright Springer Science+Business Media B.V. 2012 Community forestry policy, Poverty reduction, Linear programming, Agroforestry, 1 2012 53 9 Environmental and Resource Economics 73 95 http://hdl.handle.net/10.1007/s10640-012-9548-4 text/html Access to full text is restricted to subscribers. Bhubaneswor Dhakal Bhubaneswordhakal@gmail.com Hugh Bigsby Hugh.Bigsby@lincoln.ac.nz Ross Cullen Ross.cullen@lincoln.ac.nz
oai:RePEc:kap:enreec:v:11:y:1998:i:3:p:635-6462020-08-08RePEc:kap:enreec
article Policy Adoption Rules and Global Warming Although there is widespread agreement about the dangers of global warming and the resulting need to cut down emissions, there does not seem to be general agreement about the exact form the policy should take or the timing of its adoption. Failure to adopt and implement policies against global warming reflects the complexity of the problem, the uncertainties of climate change and the cost of policy adoption. Issues associated with the interactions between uncertainties and irreversibilities in determining the timing of policy adoption are analyzed by using the methodology of optimal stopping rules. Optimal policy functions are derived for cooperative and noncooperative solutions, with differential game representation. Issues associated with the empirical application of the optimal policy rules are also considered. Copyright Kluwer Academic Publishers 1998 damages, global warming, irreversibility, optimal stopping, timing, uncertainty, 3 1998 11 4 Environmental and Resource Economics 635 646 http://hdl.handle.net/10.1023/A:1008299430205 text/html Access to full text is restricted to subscribers. Anastasios Xepapadeas xepapad@fortezza.cc.ucr.gr
oai:RePEc:kap:enreec:v:6:y:1995:i:4:p:359-3692020-08-08RePEc:kap:enreec
article Optimal pollution taxation in a Cournot duopoly It is well known that the optimal pollution tax in a competitive industry is equal to the marginal damage inflicted by the pollution. It has also been shown that the optimal pollution tax on a monopoly is less than the marginal damage. In this paper, I derive the optimal pollution tax for a Cournot duopoly. If firms have different production costs, the optimal tax rate may exceed the marginal damage. This is so because the tax may be an effective instrument for allocating production from the less to the more efficient firm. It is also shown that, if one firm has a positive most preferred pollution tax, the sum of consumer and producer surpluses will be declining in the tax at this level. Copyright Kluwer Academic Publishers 1995 Cournot duopoly, Pigovian tax, pollution, 4 1995 6 12 Environmental & Resource Economics 359 369 http://hdl.handle.net/10.1007/BF00691819 text/html Access to full text is restricted to subscribers. R. Simpson
oai:RePEc:kap:enreec:v:64:y:2016:i:3:d:10.1007_s10640-015-9918-92020-08-08RePEc:kap:enreec
article MFN Tariff Rates and Carbon Emission: Evidence from Lower-Middle-Income Countries Abstract The paper empirically investigates whether developing countries may use trade policy as an alternative to environmental policies in order to control carbon emission. It measures the effectiveness of the existing ‘Most Favored Nations’ (MFN) tariff rates applicable to lower-middle income countries and for countries sorted on the basis of manufacturing-to-trade shares, in lowering carbon emission. By applying a fixed effects panel regression method over 16 years, it is found that the MFN tariff rate helps these economies to reduce carbon emission substantially. In addition, the role of foreign direct investment as purveyor of clean products is explored at the cross-country level. The results, at least on the ground of better environmental standards, indicate the need to re-evaluate the choice for protection under the domain of multilateral trade negotiations. Carbon emission, MFN, Trade, FDI, Developing countries 3 2016 64 7 7 Environmental and Resource Economics 493 510 F11 F13 N5 Q25 http://link.springer.com/10.1007/s10640-015-9918-9 text/html Abstract Saibal Kar saibal@cssscal.org Centre for Studies in Social Sciences, Calcutta IZA Devleena Majumdar Centre for Studies in Social Sciences, Calcutta Jadavpur University
oai:RePEc:kap:enreec:v:11:y:1998:i:3:p:273-2872020-08-08RePEc:kap:enreec
article Green Accounting in Imperfect Market Economies The idea of measuring the national welfare level by using the green NNP (net national product) has gained much attention lately. This paper summarizes the research on social accounting in imperfect market economies by putting the results into a unified framework. The main contribution of the paper is to relate the form of the national welfare measure to the functioning of the economic system and, therefore, to explicitly address the informational requirements implicit in social accounting. Copyright Kluwer Academic Publishers 1998 green accounting, market economy, 3 1998 11 4 Environmental and Resource Economics 273 287 http://hdl.handle.net/10.1023/A:1008253831365 text/html Access to full text is restricted to subscribers. Thomas Aronsson thomas.aronsson@natek.umu.se Karl-Gustaf Löfgren thomas.aronsson@natek.umu.se
oai:RePEc:kap:enreec:v:13:y:1999:i:2:p:235-2482020-08-08RePEc:kap:enreec
article Stated Preferences, Real Behaviour and Anchoring: Some Empirical Evidence We compare different contingent valuation question formats with each other and with observed behaviour for a non-monetary estimation task, the expected number of kilometers travelled by automobile. Open-ended questions, open-ended follow-up questions, dichotomous choice (DC) questions, and double-bound DC questions are included. The single and double-bound DC questions result in an estimated mean about twice as high as the actual value and the open-ended mean. The DC question overestimation seems to be due to an anchoring effect leading to ‘yea-saying’ behaviour. Our results about the difference between DC questions and open-ended questions is consistent with the pattern observed in contingent valuations studies of the willingness to pay. Our results indicates that DC questions seem to be associated with a general overestimation problem that is present even for simple non-monetary estimation tasks. Copyright Kluwer Academic Publishers 1999 contingent valuation, dichotomous-choice, hypothetical questions, real behaviour, 2 1999 13 3 Environmental and Resource Economics 235 248 http://hdl.handle.net/10.1023/A:1008271219089 text/html Access to full text is restricted to subscribers. Richard O‘Conor Magnus Johannesson Per-Olov Johansson
oai:RePEc:kap:enreec:v:18:y:2001:i:2:p:193-2182020-08-08RePEc:kap:enreec
article Effects of Technology Transfers on the Provision of Public Goods In this paper, we examine the viability ofcooperative policies oriented to the resolution oftransboundary pollution problems using the theory ofprivate provision of public goods in a two-countrymodel. We analyze the effects on economic welfare ofvoluntary technological transfers oriented to reducingthe emission of pollutants. Our analysis shows that when the atmosphere istaken as a pure public goods, ``a strong paradox'' emerges:the advanced country, in spite of the transfer, seesits economic welfare improved while the developingcountry sees it worsen. Moreover, if both a technicaland an income transfer occur, this paradox mightnot be solved. Furthermore, ``a paradoxicalimprovement'' occurs when the advanced country does nottake any policy towards the environment but thedeveloping country does: an improvement in the levelof technology in the developing country allows for anexpansion of the level of utility in both countries.On the other hand, in the case where the atmosphere istaken as an impure public goods, when both countriespursue an abatement policy, the transfer of technologyleads to an improvement in welfare in bothcountries. Copyright Kluwer Academic Publishers 2001 East Asia, pure (impure) public goods, technology transfer, transboundary pollution, 2 2001 18 2 Environmental and Resource Economics 193 218 http://hdl.handle.net/10.1023/A:1011131310523 text/html Access to full text is restricted to subscribers. Tae-Yeoun Lee tlee@kitakyu-u.ac.jp
oai:RePEc:kap:enreec:v:16:y:2000:i:4:p:347-3622020-08-08RePEc:kap:enreec
article The Replacement Value of Wetlands in Sweden Wetlands, in Sweden and elsewhere, have been suggestedas effective and low-cost sinks for agriculturalpollution. This paper estimates the value of usingwetlands for abatement of agricultural nitrogen loadon the Baltic Sea. A replacement value of wetlands isestimated for Sweden. The replacement value is definedand estimated as the difference between twocost-effective reductions of agricultural nitrogenpollution: one that uses wetlands for nitrogenabatement, and one that does not. It is shown that theuse of wetlands as nitrogen sinks can reduce the totalabatement costs of nitrogen emissions by 30% forSwedish agricultural sources of nitrogen pollution. Copyright Kluwer Academic Publishers 2000 cost-effectiveness, nitrogen, nonpoint, policy, value, wetlands, 4 2000 16 8 Environmental and Resource Economics 347 362 http://hdl.handle.net/10.1023/A:1008316619355 text/html Access to full text is restricted to subscribers. Olof Byström Olof.Bystrom@ekon.slu.se
oai:RePEc:kap:enreec:v:4:y:1994:i:2:p:127-1502020-08-08RePEc:kap:enreec
article Optimal abatement of sulphur emissions in Europe This study presents a mathematical model for determining cost-effective emissions' control strategies in Europe, by minimizing sulphur abatement costs subject to different pollution control targets. The purpose is to compare the efficiency of a uniform percentage emissions reduction with a scenario that takes variation in environmental conditions into account. Underlying the proposed model is the belief that a full cost-benefit analysis of acid rain abatement is infeasible. The model focuses on the costs of abatement and provides an estimation of the gains (or losses) that countries could achieve if they co-operate in their policies rather than act independently. Copyright Kluwer Academic Publishers 1994 Acid rain, ecosystem sensitivity thresholds, abatement cost, Jel Classification: Q2, 2 1994 4 4 Environmental & Resource Economics 127 150 http://hdl.handle.net/10.1007/BF00692200 text/html Access to full text is restricted to subscribers. George Halkos
oai:RePEc:kap:enreec:v:56:y:2013:i:1:p:149-1502020-08-08RePEc:kap:enreec
article Response to “Roemer, Mark 1+epsilon” 1 2013 56 9 Environmental and Resource Economics 149 150 http://hdl.handle.net/10.1007/s10640-013-9691-6 text/html Access to full text is restricted to subscribers. Partha Dasgupta Partha.dasgupta@econ.cam.ac.uk
oai:RePEc:kap:enreec:v:48:y:2011:i:1:p:129-1492020-08-08RePEc:kap:enreec
article Bayesian Conjoint Choice Designs for Measuring Willingness to Pay c-optimal design, Choice experiments, Conditional logit model, D-optimal design, Robust design, Valuation, 1 2011 48 1 Environmental and Resource Economics 129 149 http://hdl.handle.net/10.1007/s10640-010-9401-6 text/html Access to full text is restricted to subscribers. Bart Vermeulen bart.vermeulen@econ.kuleuven.be Peter Goos peter.goos@ua.ac.be Riccardo Scarpa rscarpa@waikato.ac.nz Martina Vandebroek martina.vandebroek@econ.kuleuven.be
oai:RePEc:kap:enreec:v:54:y:2013:i:4:p:471-4942020-08-08RePEc:kap:enreec
article Economic Causes of Deforestation in the Brazilian Amazon: A Panel Data Analysis for the 2000s We use under-explored municipality level datasets to assess the recent economic and policy determinants of deforestation in the Brazilian Amazon. We estimate yearly panel data models (from 2002 to 2009) for 663 municipalities in the region. The results show that recent deforestation is increasing with economic activity and is also affected by economic incentives, measured by fluctuations in agricultural product and wood prices. Moreover, we document that the increasing enforcement efforts of the Brazilian environmental police (IBAMA) were effective in reducing deforestation rates. Copyright Springer Science+Business Media Dordrecht 2013 Causes of deforestation, Amazon, Brazil, Q56, 4 2013 54 4 Environmental and Resource Economics 471 494 http://hdl.handle.net/10.1007/s10640-012-9610-2 text/html Access to full text is restricted to subscribers. Jorge Hargrave jorge.hargrave@ipea.gov.br Krisztina Kis-Katos krisztina.kis-katos@vwl.uni-freiburg.de
oai:RePEc:kap:enreec:v:53:y:2012:i:2:p:297-3082020-08-08RePEc:kap:enreec
article Financial Mechanism and Enforceability of International Environmental Agreements We examine how international coordination among countries generates a trend towards establishing an international institution for the provision of global public goods. In the present model, the forces creating international agreement are a politician’s motive for re-election and a financial mechanism for compliance. If a politician expects another politician in a neighboring country to signal his good performance to his citizen by participating in the agreement, and is aware that his ex post deviation will be deterred by the financial mechanism, he too decides to participate in the agreement, which then corrects externality problems. Copyright Springer Science+Business Media B.V. 2012 Enforceability, Financial mechanism, International environmental agreements, Re-election concerns, Time-consistency, D72, H87, P58, 2 2012 53 10 Environmental and Resource Economics 297 308 http://hdl.handle.net/10.1007/s10640-012-9563-5 text/html Access to full text is restricted to subscribers. Kimiko Terai kterai@econ.keio.ac.jp
oai:RePEc:kap:enreec:v:45:y:2010:i:1:p:1-12020-08-08RePEc:kap:enreec
article Editorial 1 2010 45 1 Environmental and Resource Economics 1 1 http://hdl.handle.net/10.1007/s10640-009-9336-y text/html Access to full text is restricted to subscribers. Kerry Turner Ian Bateman I.Bateman@uea.ac.uk
oai:RePEc:kap:enreec:v:13:y:1999:i:3:p:341-3672020-08-08RePEc:kap:enreec
article Valuing the Incremental Benefits of Groundwater Protection when Exposure Levels are Known Both economic theory and psychological research indicate that benefit functions for reductions in health risk exposures may be conditional on current exposures. Using nitrates found in household wells, it is demonstrated that perceptions of health risks across exposure levels are affected by the individual's current exposure level, thus providing support for a conditional benefits function approach. Functions of conditional incremental benefits are estimated from a contingent valuation study of households that had been informed of their water test results. Incremental benefits reach a peak at an intermediate level of nitrates and then decline. Possible explanations for this non-convexity are provided. Copyright Kluwer Academic Publishers 1999 contingent valuation, damage and benefit functions, groundwater quality, risk perceptions, JEL classification: Q21, Q25, D62, 3 1999 13 4 Environmental and Resource Economics 341 367 http://hdl.handle.net/10.1023/A:1008251418007 text/html Access to full text is restricted to subscribers. Gregory Poe Richard Bishop
oai:RePEc:kap:enreec:v:16:y:2000:i:4:p:379-3892020-08-08RePEc:kap:enreec
article Valuations of Life and Injury Risks A research on valuing risks to life and health in thecontext of a developing country is practicallynon-existent. This study provides the first estimatedvalues of life and health, using data from India.These values can aid policy makers, internationalagencies and researchers in evaluating health projectsin developing nations. They can also be used to carryout comparisons with values obtained for developedcountries. Copyright Kluwer Academic Publishers 2000 compensating wage differentials, hedonic price, value of life/injury, 4 2000 16 8 Environmental and Resource Economics 379 389 http://hdl.handle.net/10.1023/A:1008364502517 text/html Access to full text is restricted to subscribers. K. Shanmugam shanmugamkr@hotmail.com
oai:RePEc:kap:enreec:v:45:y:2010:i:4:p:517-5352020-08-08RePEc:kap:enreec
article Spatial Management of Invasive Species: Pathways and Policy Options Metapopulation, Ecosystem services, Optimal control, Bioeconomic, Economic-ecological modeling, Q57, Q27, Q18, 4 2010 45 4 Environmental and Resource Economics 517 535 http://hdl.handle.net/10.1007/s10640-009-9326-0 text/html Access to full text is restricted to subscribers. James Sanchirico jsanchirico@ucdavis.edu Heidi Albers HJ.Albers@oregonstate.edu Carolyn Fischer fischer@rff.org Conrad Coleman
oai:RePEc:kap:enreec:v:5:y:1995:i:2:p:165-1892020-08-08RePEc:kap:enreec
article Impacts of an EC carbon/energy tax and deregulating thermal power supply on CO 2 , SO 2 and NO x emissions Emission of CO 2 , SO 2 and NO x are all closely linked to the burning of fossil fuels. Here we report on simulations done by linking a Sectoral European Energy Model (SEEM), covering energy demand in nine Western European countries, with the emission-transport-deposition model RAINS developed by IIASA. The study analyses emissions of CO 2 , SO 2 and NO x , deposition of sulphur and nitrogen and the extent of areas where the critical load for sulphur is exceeded in year 2000 under four different energy scenarios. Two different sets of future behavioural patterns for the thermal electric power production sector are considered. In one regime, called the plan-efficient regime, the sector is assumed to follow official plans with regard to investment in new capacity. In the other regime, called the cost-efficient regime, the thermal power sector is assumed to behave in a cost minimizing manner. The effects of the proposed EC carbon/energy tax are studied under both regimes, giving rise to altogether four scenarios. In both regimes the effect of the EC tax is to reduce emissions by between 6 and 10 per cent in year 2000 relative to the scenarios without the tax. A change of regime, from the regulated, plan-efficient regime to the market-based, cost-efficient regime, will, by itself, reduce emissions of CO 2 and NO x by approximately 3 per cent, while SO 2 emissions are reduced by 13 per cent. The EC tax will reduce sulphur deposition by more than 5 per cent in the nine model countries under the plan-efficient regime. A change of regime further reduces the total deposition by 9 per cent. The area where depositions exceed the critical load is reduced by approximately 6 per cent in year 2000 by the tax in both regimes. Changing from the plan-efficient to the cost-efficient regime has a similar impact. Although the emission reductions due to the EC tax may seem modest, they are shown to have a sizeable effect on the technological abatement costs of reaching targets like those prescribed in the Sofia protocol on the stabilisation of NO x emissions, and the Helsinki protocol on SO 2 emission reductions. This is part of what can be considered to be secondary benefits of the EC carbon/energy tax. Copyright Kluwer Academic Publishers 1995 Carbon tax, emissions to air, power supply, 2 1995 5 3 Environmental & Resource Economics 165 189 http://hdl.handle.net/10.1007/BF00693022 text/html Access to full text is restricted to subscribers. Knut Alfsen Hugo Birkelund Morten Aaserud
oai:RePEc:kap:enreec:v:40:y:2008:i:4:p:593-6082020-08-08RePEc:kap:enreec
article Valuing Changes in the Quality of Coral Reef Ecosystems: A Stated Preference Study of SCUBA Diving in the Bonaire National Marine Park Coral reef, Marine protected area, Non-market valuation, 4 2008 40 8 Environmental and Resource Economics 593 608 http://hdl.handle.net/10.1007/s10640-007-9171-y text/html Access to full text is restricted to subscribers. George Parsons gparsons@udel.edu Steven Thur steven.thur@noaa.gov
oai:RePEc:kap:enreec:v:31:y:2005:i:3:p:385-3882020-08-08RePEc:kap:enreec
article Book Review: Mark Sagoff, ed. 2004. Price, Principle and the Environment. Cambridge University Press, Cambridge. x+284 pp. £40 hardback and £17.99 paperback. ISBN 0 521 83723 5 and ISBN 0 521 54596 X 3 2005 31 07 Environmental & Resource Economics 385 388 http://hdl.handle.net/10.1007/s10640-005-3046-x text/html Access to full text is restricted to subscribers. David Pearce d.pearce@ucl.ac.uk
oai:RePEc:kap:enreec:v:56:y:2013:i:1:p:47-722020-08-08RePEc:kap:enreec
article Between a Rock and a Hard Place: A Trade-Theory Analysis of Leakage Under Production- and Consumption-Based Policies Without a comprehensive global climate agreement, carbon leakage remains a contentious issue. Consumption-based pricing of emissions—which could in practice be implemented with a full border tax adjustment (BTA)—has been forwarded as an option to increase the effectiveness of unilateral climate policy. This paper questions the economic rationale behind this approach, using a theoretical $$2 \times 2$$ trade model in which leakage occurs through terms-of-trade effects. We show analytically, first, that consumption-based pricing of emissions does not necessarily result in less leakage than production-based policies. Second, the sign of the optimal unilateral carbon tariff depends on the carbon-intensity differential between the foreign country’s exporting and non-exporting sectors, and not on the differential between home’s and foreign’s exporting sectors, as implied by the full BTA approach. Third, based on empirical data for the year 2004, our model implies that full BTA applied by the European Union on e.g. imports from and exports to China would—by shifting China’s production from the export sector with a relatively low carbon-intensity towards the more carbon-intensive non-export sector—actually increase leakage. Copyright Springer Science+Business Media Dordrecht 2013 Leakage, Carbon tariff, Consumption-based emission policy, Border tax adjustment, Climate policy, F11, F18, Q54, Q56, 1 2013 56 9 Environmental and Resource Economics 47 72 http://hdl.handle.net/10.1007/s10640-013-9638-y text/html Access to full text is restricted to subscribers. Michael Jakob jakob@pik-potsdam.de Robert Marschinski robert.marschinski@pik-potsdam.de Michael Hübler huebler@zew.de
oai:RePEc:kap:enreec:v:1:y:1991:i:1:p:63-822020-08-08RePEc:kap:enreec
article Static and dynamic efficiency of pollution control strategies A great deal of the economic literature on pollution control strategies concentrates on the efficiency of environmental policy instruments. Most analytical studies in this field show that market instruments are more efficient with respect to the cost of pollution abatement of a given number of polluters than non-market instruments. According to several analytical studies, market instruments should also be more efficient with respect to innovation in pollution abatement equipment than non-market instruments. In the empirical literature a great number of case studies exist with estimations of the savings of abatement costs of market instruments in a situation without technological progress. Empirical studies about the impact of environmental policy market instruments on the abatement costs in situations with technological progress are lacking. The purpose of this paper is to fill this gap. The paper deals with an empirical estimation of abatement costs for the emission of SO 2 of coal-fired electricity units in the Netherlands from 1985 to 2000. First, the working of market instruments and non-market instruments (the existing environmental policy of the Dutch government) is simulated in a static situation. Second, we analyse the learning effects of flue gas desulphurization. The efficiency advantage of market instruments turns out to be larger in a situation of technological progress than in a static situation. Copyright Kluwer Academic Publishers 1991 Pollution control, SO 2 emission abatement, technological progress, learning curve, 1 1991 1 3 Environmental & Resource Economics 63 82 http://hdl.handle.net/10.1007/BF00305951 text/html Access to full text is restricted to subscribers. Doede Wiersma
oai:RePEc:kap:enreec:v:20:y:2001:i:4:p:331-3462020-08-08RePEc:kap:enreec
article A Comparison of Willingness to Pay Estimation Techniques From Referendum Questions Referendum style willingness to pay questions have been used to estimatepassive use values. This referendum question format method may beproblematic for many reasons, including the statistical techniques used toestimate willingness to pay from discrete responses. This paper comparesa number of parametric, semi-nonparametric and nonparametric estimationtechniques using data collected from US households regarding Federalprotection of endangered fish species.The advantages and disadvantagesof the various statistical models used are explored. A hypothesis test forstatistical equality among estimation techniques is performed using ajackknife bootstrapping method. When the equality test is applied, themodeling techniques do show significant differences in some possiblecomparisons, but only those that are nonparamentric. This can lead toconflicting interpretations of what the data show. Resource managers andpolicy analysts need to use caution when interpreting results until anindustry standard can be developed for estimating willingness to pay fromclosed ended questions. Copyright Kluwer Academic Publishers 2001 contingent valuation, endangered species, nonmarket economics, willingness to pay, 4 2001 20 12 Environmental and Resource Economics 331 346 http://hdl.handle.net/10.1023/A:1013025120987 text/html Access to full text is restricted to subscribers. Kelly Giraud John Loomis Joseph Cooper
oai:RePEc:kap:enreec:v:42:y:2009:i:3:p:379-4102020-08-08RePEc:kap:enreec
article Fisheries Management Under Cyclical Population Dynamics Cyclical growth parameters, Environmental fluctuations, Gordon-Schaefer model, Q22, D78, 3 2009 42 3 Environmental and Resource Economics 379 410 http://hdl.handle.net/10.1007/s10640-008-9254-4 text/html Access to full text is restricted to subscribers. Richard Carson rcarson@econ.ucsd.edu Clive Granger cgranger@ucsd.edu Jeremy Jackson jbcj@ucsd.edu Wolfram Schlenker wolfram.schlenker@columbia.edu
oai:RePEc:kap:enreec:v:50:y:2011:i:4:p:475-4932020-08-08RePEc:kap:enreec
article The Ethics of Intergenerational Distribution: Reply and Response to John E. Roemer Teleological theories, Classical utilitarianism, Intuitionist theories, Coarse-grained theories, Fine-grained theories, Consumption discount rates, Felicity discount rates, Dysfunctional societies, Continuity and completeness of social orderings, D63, D90, H43, 4 2011 50 12 Environmental and Resource Economics 475 493 http://hdl.handle.net/10.1007/s10640-011-9496-4 text/html Access to full text is restricted to subscribers. Partha Dasgupta partha.dasgupta@econ.cam.ac.uk
oai:RePEc:kap:enreec:v:47:y:2010:i:1:p:1-222020-08-08RePEc:kap:enreec
article Agri-Environmental Program Compliance in a Heterogeneous Landscape Nutrient runoff, Monitoring, Enforcement, Fertilizer, Riparian buffers, Q15, Q18, H23, 1 2010 47 9 Environmental and Resource Economics 1 22 http://hdl.handle.net/10.1007/s10640-010-9361-x text/html Access to full text is restricted to subscribers. Jussi Lankoski Jussi.LANKOSKI@oecd.org Erik Lichtenberg elichtenberg@arec.umd.edu Markku Ollikainen markku.ollikainen@helsinki.fi
oai:RePEc:kap:enreec:v:65:y:2016:i:1:d:10.1007_s10640-016-0016-42020-08-08RePEc:kap:enreec
article Climate Coalition Formation When Players are Heterogeneous and Inequality Averse Abstract In this paper, we study the formation of international climate coalitions in the case players are perfectly heterogeneous and inequality averse. The paper provides an analytical solution for the optimal contribution of an arbitrary coalition member to a linear and pure public good. Based on empirical estimates for the parameters the model is then applied to the problem of climate mitigation policies. We provide a full stability analysis of all coalitions that can be formed by the twelve world regions from Nordhaus’ RICE model. As it turns out, only four two-player coalitions are internally stable. For a wealthy country leaving a coalition, its absolute payoff increases more than its disutility from additional advantageous inequality. A poor country improves its welfare by dropping out since its absolute payoff increases and, at the same time, disutility from disadvantageous inequality is reduced. Introducing suitable transfer schemes, however, large coalitions consisting of economically divergent countries turn out to be internally stable. Climate policy, Coalition game, Heterogeneity, Inequality aversion, Voluntary cooperation, Transfers 1 2016 65 9 3 Environmental and Resource Economics 33 59 C72 D63 H41 Q54 http://link.springer.com/10.1007/s10640-016-0016-4 text/html Abstract Carsten Vogt carsten.vogt@hs-bochum.de Bochum University of Applied Sciences
oai:RePEc:kap:enreec:v:10:y:1997:i:3:p:301-3142020-08-08RePEc:kap:enreec
article A Post-Consumer Waste Management Model for Determining Optimal Levels of Recycling and Landfilling The present study examines the optimal recycling rate for municipal solid waste. First, an optimal control model is developed to account for the physical costs of recycling, the social costs of landfilling, and consumers' environmental preferences. Second, an optimal solution is simulated using waste disposal data from the Helsinki region in Finland. The benefits from recycling are included in the simulation using the results of a recent contingent valuation study. The results of the present research suggest that mandates for achieving 50% recycling in municipalities are not far-fetched and are both economically and environmentally justified. Copyright Kluwer Academic Publishers 1997 landfilling, recycling, waste management, optimal control, 3 1997 10 10 Environmental and Resource Economics 301 314 http://hdl.handle.net/10.1023/A:1026475208718 text/html Access to full text is restricted to subscribers. Anni Huhtala anni.huhtala@metla.fi
oai:RePEc:kap:enreec:v:35:y:2006:i:2:p:109-1352020-08-08RePEc:kap:enreec
article Political Measures for Strategic Environmental Policy with External Effects This paper investigates an environmental policy designed to reduce the emission of pollutants under uncertainty, with the agent problem as an optimal stopping problem. We first analyze the two cases in which there are one agent and two competing agents by following Ohyama and Tsujimura ( 2005 ). When we consider a model of strategic agents, we need to analyze the external economic effect that is peculiar to an agent’s environmental policy implementation. Then, to improve and resolve these external effects, we examine three alternative political measures, comprising an environmental subsidy, an environmental tax and an emission trading system. The results of the analysis indicate that the environmental subsidy and environmental tax promote environmental policy. However, they do not create an incentive to be the leader. On the other hand, an emissions trading system not only promotes environmental policy but also creates an incentive for leadership. Copyright Springer Science+Business Media, Inc. 2006 environmental subsidy, environmental tax, external effects, real options, tradable emission permits, Q53, C72, G19, 2 2006 35 10 Environmental and Resource Economics 109 135 http://hdl.handle.net/10.1007/s10640-006-9010-6 text/html Access to full text is restricted to subscribers. Atsuyuki Ohyama a2yuki@mc4.seikyou.ne.jp Motoh Tsujimura
oai:RePEc:kap:enreec:v:5:y:1995:i:4:p:413-4232020-08-08RePEc:kap:enreec
article Empirical and public choice evidence for hyperbolic social discount rates and the implications for intergenerational discounting The derivation of the correct discount rate for intergenerational projects in Cost Benefit Analysis is particularly contentious. Public choice has resulted in lower discretionary exponential discount rates for many intergenerational projects in Britain and the USA. This is shown to be strong indirect evidence that the true social discount rate may be a hyperbolic (rather than an exponential) function. There is also empirical evidence for this hypothesis. The hyperbolic nature of discounting is also a standard finding in the behavioural sciences. For intergenerational time frames hyperbolic discount rates should be employed together with exponential discount rates in cost-benefit sensitivity analyses. Copyright Kluwer Academic Publishers 1995 Cost benefit analysis, social discount rate, hyperbolic discounting, intergenerational discounting, 4 1995 5 6 Environmental & Resource Economics 413 423 http://hdl.handle.net/10.1007/BF00691577 text/html Access to full text is restricted to subscribers. Norman Henderson Ian Bateman
oai:RePEc:kap:enreec:v:2:y:1992:i:6:p:593-6042020-08-08RePEc:kap:enreec
article On modeling incentive systems which utilize pollution charges for pollution abatement This paper examines a scheme of economic incentives for environmental protection, in which spatially differentiated pollution taxes are in use in compensating the pollution abatement costs. A simple mathematical model is described which determines an incentive system that encourages polluters to reduce the discharges to an acceptable level of ambient quality standards in a “cost-effective” manner. It is shown that the vector of pollution charges has to be proportional to the marginal abatement cost vector, but is smaller than the latter in magnitude. It is demonstrated that a necessary incentive effect may be achieved even if the total pollution charge is much lower (about three times) than the total abatement costs. It is also estimated how this charge incentive system reconciles conflicting criteria of cost-effectiveness and of equity. These conclusions are verified by numerical experiments with real data. Copyright Kluwer Academic Publishers 1992 Economic incentives, pollution charges, pollution control subsides, cost-effectiveness analysis, 6 1992 2 11 Environmental & Resource Economics 593 604 http://hdl.handle.net/10.1007/BF00330285 text/html Access to full text is restricted to subscribers. A. Rikun
oai:RePEc:kap:enreec:v:42:y:2009:i:2:p:151-1682020-08-08RePEc:kap:enreec
article Which Firms are More Sensitive to Public Disclosure Schemes for Pollution Control? Evidence from Indonesia’s PROPER Program Environmental policy, Pollution control, Public disclosure, Developing country, Asia, Indonesia, 2 2009 42 2 Environmental and Resource Economics 151 168 http://hdl.handle.net/10.1007/s10640-008-9211-2 text/html Access to full text is restricted to subscribers. Jorge García Shakeb Afsah Thomas Sterner thomas.sterner@economics.gu.se
oai:RePEc:kap:enreec:v:51:y:2012:i:3:p:453-4702020-08-08RePEc:kap:enreec
article Bargaining and Devolution in the Upper Guadiana Basin Bargaining theory, Devolution, Water policy, Political economy, 3 2012 51 3 Environmental and Resource Economics 453 470 http://hdl.handle.net/10.1007/s10640-011-9507-5 text/html Access to full text is restricted to subscribers. Carmen Marchiori Susan Sayre ssayre@smith.edu Leo Simon
oai:RePEc:kap:enreec:v:29:y:2004:i:1:p:67-822020-08-08RePEc:kap:enreec
article Benefit Transfer in Europe: How Reliable Are Transfers between Countries? The benefits for specific health impacts related to air and water quality were measured in simultaneous contingent valuation surveys conducted in five different European countries. Consistent inter-country differences in willingness to pay to avoid ill health episodes could not be explained by measurable differences in individual characteristics. International transfer of unit values resulted in an average transfer error of 38%. Accounting for measurable differences among countries in health status, income and other demographic measures, either through ad hoc adjustments to the transferred values or through value function transfer, did not improve transfer performance. Copyright Kluwer Academic Publishers 2004 benefit transfer, contingent valuation, health, value transfer, 1 2004 29 9 Environmental and Resource Economics 67 82 http://hdl.handle.net/10.1023/B:EARE.0000035441.37039.8a text/html Access to full text is restricted to subscribers. Richard Ready rready@psu.edu Ståle Navrud Brett Day Richard Dubourg Fernando Machado Susana Mourato Frank Spanninks Maria Rodriquez
oai:RePEc:kap:enreec:v:4:y:1994:i:5:p:511-5262020-08-08RePEc:kap:enreec
article Contingent valuation in Korean environmental planning: A pilot application to the protection of drinking water quality in Seoul This paper describes the application of the contingent valuation (CV) or willingness to pay (WTP) survey technique to a problem of public policy evaluation in Seoul, Korea. Matters of principal interest include: the definition of the problem and policy — protection of Seoul's drinking water supply from disruption by “slugs” of contaminants in the source river (the Han); adjustments to standard CV techniques and assumptions required by the cultural and physical reality of Seoul; the representativeness of the spatially-drawn sample; estimation of the willingness to pay equation as a check on theoretical validity; and the policy implications of the results. The bottom line is asserted to be that CV may be especially valuable in countries such as Korea that have serious environmental problems and a history of not producing data that might be used in alternative (indirect) benefit estimation exercises. Further, it appears that if care is exercised in adjusting to local reality, the method can be made as successful as it has been in the U.S. and northern Europe. Copyright Kluwer Academic Publishers 1994 5 1994 4 10 Environmental & Resource Economics 511 526 http://hdl.handle.net/10.1007/BF00691926 text/html Access to full text is restricted to subscribers. Seung-Jun Kwak Clifford Russell
oai:RePEc:kap:enreec:v:4:y:1994:i:5:p:455-4782020-08-08RePEc:kap:enreec
article On levies to reduce the nitrogen surplus: The case of Dutch pig farms Pig farms in the Netherlands pay a zero or low price for using the environment. As a consequence, the environment is overused. The Dutch government wants to reduce the emissions of nitrogen and phosphorus. Possible instruments are regulation and levies. In this study a levy on feed and a levy on the nitrogen surplus are investigated, by incorporating a bad output in the production model. The model is estimated using panel data of Dutch pig farms over the period 1975–1989. Levies on nitrogen turn out to be more cost-effective than levies on feed. Copyright Kluwer Academic Publishers 1994 Pollution control, manure problem, nitrogen surplus, bad output, levies, 5 1994 4 10 Environmental & Resource Economics 455 478 http://hdl.handle.net/10.1007/BF00691923 text/html Access to full text is restricted to subscribers. Peter Fontein Geert Thijssen Jan Magnus Jan Dijk
oai:RePEc:kap:enreec:v:26:y:2003:i:3:p:469-4922020-08-08RePEc:kap:enreec
article Constraining Equitable Allocations of Tradable CO 2 Emission Quotas by Acceptability Since the signing of the Kyoto Protocol, future commitments are likely to beframed in terms of tradable quotas. The discussions on the allocation of thequotas among countries will be based – at least partly – on rulescorresponding to a certain conception of equity. For instance, allocatingquotas in direct proportion to population, in relation to GDP or accordingto past emissions has been advocated. Taking a long term perspective, wecompute such allocations of tradable quotas with a dynamic (closed-loop)model. The total amount of quotas to be distributed at each periodcorresponds to the world optimal amount of emissions to be realized at eachperiod. We observe that most “equitable” allocation rules do not make theagreement individually rational for every country along the entire timepath. We then propose a mechanism which determines allocations of quotasthat are as close as possible to any “equitable” allocation while satisfyingindividual rationality. Copyright Kluwer Academic Publishers 2003 acceptability, climate change, dynamic games, equity, tradable quotas, 3 2003 26 11 Environmental and Resource Economics 469 492 http://hdl.handle.net/10.1023/B:EARE.0000003625.77571.9f text/html Access to full text is restricted to subscribers. M. Germain germain@core.ucl.ac.be V. van Steenberghe vansteenberghe@core.ucl.ac.be
oai:RePEc:kap:enreec:v:21:y:2002:i:1:p:23-462020-08-08RePEc:kap:enreec
article Economic Value of the Carbon Sink Services of Tropical Secondary Forests and Its Management Implications This paper explores the economic feasibility of secondary forest regeneration and conservation as an alternative in the campaign addressing the problem of global warming. Detailed measurements of tropical secondary forests over time, in different ecological zones of Costa Rica, are used to evaluate carbon storage models. The paper addresses key issues in the international discussion about cross- and within-country compensation for carbon storage services and illustrates a method to compute/predict their economic value over time under a variety of scenarios. The procedure is applicable to other developing countries where secondary forest growth is increasingly important. Copyright Kluwer Academic Publishers 2002 activities implemented jointly, carbon sequestration, clean development mechanism, global warming, tropical forests, 1 2002 21 1 Environmental and Resource Economics 23 46 http://hdl.handle.net/10.1023/A:1014533310664 text/html Access to full text is restricted to subscribers. Octavio Ramirez octavio.ramirez@ttu.edu Carlos Carpio Rosalba Ortiz Brian Finnegan
oai:RePEc:kap:enreec:v:59:y:2014:i:4:p:537-5592020-08-08RePEc:kap:enreec
article Multicrop Production Models with Multinomial Logit Acreage Shares The main objective of this paper is to show that the MultiNomial Logit (MNL) framework can be used for deriving simple acreage share models. More specifically we show that MNL acreage choice models can be defined as parts of consistent multicrop models. When coupled with suitably designed crop production models, e.g. a specific parameterization of the standard quadratic yield function, the parameters of these multicrop models are easily interpreted and estimated. Although MNL acreage choice models are usually derived by aggregating crop choices defined at the plot level, we show that these models can also be derived by considering a profit maximisation problem at the farm level. This provides a simple theoretical background for the Standard MNL acreage share model, as well as for simple extensions of these models: the Nested MNL acreage share models. An empirical application on French farm-level data over the period 1996–2007 investigates the empirical performances of the multicrop econometric models based on the proposed MNL framework for modelling acreage choices. Copyright Springer Science+Business Media Dordrecht 2014 Acreage share, Multicrop econometric model, Multinomial logit model, Production choices, Discrete choice, 4 2014 59 12 Environmental and Resource Economics 537 559 http://hdl.handle.net/10.1007/s10640-013-9748-6 text/html Access to full text is restricted to subscribers. Alain Carpentier Alain.Carpentier@rennes.inra.fr Elodie Letort
oai:RePEc:kap:enreec:v:62:y:2015:i:4:p:657-6642020-08-08RePEc:kap:enreec
article Game Theory and Environmental and Resource Economics–In Honour of Alfred Endres 4 2015 62 12 Environmental and Resource Economics 657 664 http://hdl.handle.net/10.1007/s10640-015-9955-4 text/html Access to full text is restricted to subscribers. Michael Finus M.Finus@bath.ac.uk Bianca Rundshagen
oai:RePEc:kap:enreec:v:49:y:2011:i:4:p:473-4902020-08-08RePEc:kap:enreec
article International Cooperation on Climate-friendly Technologies Climate policy, International climate agreements, R&D policy, Technology spillovers, H23, O30, Q20, Q38, Q48, Q54, 4 2011 49 8 Environmental and Resource Economics 473 490 http://hdl.handle.net/10.1007/s10640-010-9442-x text/html Access to full text is restricted to subscribers. Rolf Golombek rolf.golombek@frisch.uio.no Michael Hoel m.o.hoel@econ.uio.no
oai:RePEc:kap:enreec:v:14:y:1999:i:3:p:333-3512020-08-08RePEc:kap:enreec
article Cost Benefit Analysis of European Air Quality Targets for Sulphur Dioxide, Nitrogen Dioxide and Fine and Suspended Particulate Matter in Cities The European Commission has proposed air quality standards for NO 2 , SO 2 and PM 10 to be in force by 2010. The present paper presents a study that gauged their costs and benefits. An analysis of the expected emissions for 2010 (reference emission scenario), using simplified air quality models, showed that non-compliance with these standards will occur in cities only, not in rural areas. Most compliance problems are expected for PM 10 , least for SO 2 . Central estimates of the costs to meet standards range from 21 MECU (SO 2 ), to 79 MECU (NO 2 ) to 87--225 MECU (PM 10 ). The estimated benefits are 83--3783 MECU (SO 2 ), 408--5900 MECU (NO 2 ), and 5007--51247 MECU (PM 10 ). Uncertainties are high, due to errors and incertitude in various steps of the methodology, mainly the estimation of the human health effects, in particular effects on mortality, and in the valuation of a statistical life. In the case of PM 10 , additional uncertainty results from the small size of the air quality database. Notwithstanding the uncertainties, the indications are that the benefits exceed the costs. Copyright Kluwer Academic Publishers 1999 air quality, cities, cost benefit analysis, SO 2 , NO X , PM 10 , 3 1999 14 10 Environmental and Resource Economics 333 351 http://hdl.handle.net/10.1023/A:1008362631700 text/html Access to full text is restricted to subscribers. Xander Olsthoorn xander.olsthoorn@ivm.vu.nl Markus Amann Alena Bartonova Jocelyne Clench-Aas Janusz Cofala Kees Dorland Cristina Guerreiro Jan Henriksen Huib Jansen Steinar Larssen
oai:RePEc:kap:enreec:v:22:y:2002:i:1:p:297-3212020-08-08RePEc:kap:enreec
article On Designing Constructed Markets in Valuation Surveys In this paper I consider some of the methodological issues involvedin designing valid contingent valuation (CV) scenarios. I identifythe several parts of these scenarios and the design issues particularto those parts. Although my principal example is the scenario I andothers used in the Exxon Valdez oil spill study of the naturalresource damages to Prince William Sound, Alaska, I generalize toother types of CV scenarios. Copyright Kluwer Academic Publishers 2002 contingent valuation, Exxon Valdez oil spill, survey methods, 1 2002 22 6 Environmental and Resource Economics 297 321 http://hdl.handle.net/10.1023/A:1015571100238 text/html Access to full text is restricted to subscribers. Robert Mitchell rmitchell@clarku.edu
oai:RePEc:kap:enreec:v:64:y:2016:i:1:d:10.1007_s10640-014-9859-82020-08-08RePEc:kap:enreec
article Marginal Damage Cost of Nutrient Enrichment: The Case of the Baltic Sea Abstract The purpose of this article is to investigate the link between marine pollution and marine renewable resources. An extended bio-economic model of a fishery is developed to include nutrient enrichment and built into a general model of the polluting and fishery sector with nutrient concentration and fish stock as state variables. The marginal damage function for nutrient enrichment is derived. This function can be compared with the marginal abatement cost and hence it provides a basis for policies that balance the use of nutrients in land-based industries (for example agriculture) with the external cost to the marine environment. The model is empirically applied to the case of the Baltic Sea, where Eastern Baltic cod fisheries are affected by nutrient enrichment. The results indicate that nitrogen loading needs to be reduced slightly (around 1 %) to reach optimal levels. The results also show that the optimal fishery policy plays a more important role in producing the net benefits than nitrogen reduction policies do. Further, the impact on the productivity of the fish stock from pollution reduction is higher when an optimal policy is followed. Marginal damage function, Marine environment, Eutrophication, Eastern Baltic cod, Bio-economic modeling 1 2016 64 5 6 Environmental and Resource Economics 109 129 D24 H41 Q18 Q22 Q53 http://link.springer.com/10.1007/s10640-014-9859-8 text/html Abstract Thanh Viet Nguyen VNU University of Economics and Business Lars Ravn-Jonsen University of Southern Denmark Niels Vestergaard nv@sam.sdu.dk University of Southern Denmark
oai:RePEc:kap:enreec:v:37:y:2007:i:2:p:411-4302020-08-08RePEc:kap:enreec
article Credence Goods, Efficient Labelling Policies, and Regulatory Enforcement We analyse the optimality of information revelation of hidden attributes of “credence goods” via alternative labelling procedures. When consumers are heterogeneous in their willingness to pay for the hidden attribute, producers can either self-label their products, or have them certified by a third party. The government can impose self or third party labelling requirements on either the “green” or the “brown” producers. Our benchmark model develops a condition that links the optimal imposition of third party labelling to the relative market share of each type of the good under complete information. We extend our analysis to incorporate asymmetric information and cheating by the producers. When corrupt producers can affix spurious labels, the government needs to supplement the labelling policy with costly monitoring activities. We find that mandatory self-labelling schemes generally dominate mandatory third party labelling, unless the “market share effect” greatly exceeds the “incentive-to-cheat effect”. Copyright Springer Science+Business Media, Inc. 2007 corruption, credence goods, eco-labelling, monitoring, self-labelling, third party labelling, Q58, L15, D82, 2 2007 37 6 Environmental and Resource Economics 411 430 http://hdl.handle.net/10.1007/s10640-006-9032-0 text/html Access to full text is restricted to subscribers. Soham Baksi s.baksi@uwinnipeg.ca Pinaki Bose
oai:RePEc:kap:enreec:v:4:y:1994:i:6:p:595-5982020-08-08RePEc:kap:enreec
article Alternative fishery management policies: Monitoring costs versus catch limits 6 1994 4 12 Environmental & Resource Economics 595 598 http://hdl.handle.net/10.1007/BF00693048 text/html Access to full text is restricted to subscribers. Philip Graves Robert Sexton Dwight Lee Steve Jackstadt
oai:RePEc:kap:enreec:v:4:y:1994:i:2:p:187-2082020-08-08RePEc:kap:enreec
article Measuring the trade-off between economic growth and a clean environment This article surveys various aspects of the measurement of environmental quality from the view point of national accounting and welfare economics. It focuses on the question whether GNP or NNP should be corrected for environmental change (‘green’ or ‘eco’-GNP) or whether physical accounts provide sufficient information for an assessment of the trade-off mentioned above. We conclude that valuation of (services from) environmental capital cannot be avoided for such assessment, but can only be made using a model based approach. Statistical agencies should continue to collect data on environmental quality and to value changes in environmental capital in the context of national resource accounting. However, official statisticians should refrain from correcting GNP or NNP for environmental change, as this correction implicitly contains a political judgment and cannot be based on mere technical knowledge. Copyright Kluwer Academic Publishers 1994 Green GNP, optimal economic growth, sustainable development, environmental capital, environmental valuation, indicators, 2 1994 4 4 Environmental & Resource Economics 187 208 http://hdl.handle.net/10.1007/BF00692203 text/html Access to full text is restricted to subscribers. F. Butter H. Verbruggen
oai:RePEc:kap:enreec:v:23:y:2002:i:2:p:149-1662020-08-08RePEc:kap:enreec
article Strategic Environmental Policy, Clean Technologies and the Learning Curve In the political discussion, it is often emphasized that the environmental service industry (which produces a clean factor of production) benefits from an early and strong environmental policy. This is especially likely if the costs of production are decreasing over time due to learning curve effects. Surprisingly, the environmental service industry has not been integrated into the theory of strategic environmental policy yet. Our main question is whether a national leadership in environmental policy can pay off if profits of the environmental service industry are taken into account. We consider a two-period model with one firm in each country competing on a third market. Emissions can be substituted by the clean factor when deciding upon the production technology. The unit costs of producing the clean factor in the second period are decreasing in the quantity produced in the initial period. We derive the optimal environmental policy for both periods from a national point of view and show that the presence of the environmental service industry can indeed lead to a national leadership in pollution control. Copyright Kluwer Academic Publishers 2002 clean technology, environmental policy, infant industry, learning curve, strategic trade policy, 2 2002 23 10 Environmental and Resource Economics 149 166 http://hdl.handle.net/10.1023/A:1021249404533 text/html Access to full text is restricted to subscribers. Eberhard Feess feess@rwth-aachen.de Gerd Muehlheusser gerd.muehlheusser@wiwi.uni-bonn.de
oai:RePEc:kap:enreec:v:54:y:2013:i:1:p:139-1542020-08-08RePEc:kap:enreec
article Selectivity, Pulse Fishing and Endogenous Lifespan in Beverton-Holt Models Optimal management in a multi-cohort Beverton-Holt model with any number of age classes and imperfect selectivity is equivalent to finding the optimal fish lifespan by chosen fallow cycles. Optimal policy differs in two main ways from the optimal lifespan rule with perfect selectivity. First, weight gain is valued in terms of the whole population structure. Second, the cost of waiting is the interest rate adjusted for the increase in the pulse length. This point is especially relevant for assessing the role of selectivity. Imperfect selectivity reduces the optimal lifespan and the optimal pulse length. We illustrate our theoretical findings with a numerical example. Results obtained using global numerical methods select the optimal pulse length predicted by the optimal lifespan rule. Copyright Springer Science+Business Media B.V. 2013 Optimisation in age-structured models, Pulse fishing, O1, AMS 91B76, 92D25, 1 2013 54 1 Environmental and Resource Economics 139 154 http://hdl.handle.net/10.1007/s10640-012-9585-z text/html Access to full text is restricted to subscribers. José-María Da Rocha jmrocha@uvigo.es María-Jose Gutiérrez Luis Antelo
oai:RePEc:kap:enreec:v:30:y:2005:i:4:p:465-4842020-08-08RePEc:kap:enreec
article Population Density, Pollution and Growth We analyze a growth model where the damage of pollution depends on population density and the character of pollution. From the steady state rates of change, in the social optimum, of a neoclassical and a semi-endogenous growth model respectively, we conclude that the less responsive the damage of pollution is to population density, the more likely is a development path with positive growth in consumption per capita and declining perceived pollution per capita. Non-awareness of the character of pollution may thus give suboptimal solutions. In particular, the commonly held view that pollution is a pure public bad may lead to growth-rate targets that are lower than optimal. Finally, we find that the character of pollution does not influence the transitional dynamics qualitatively. Copyright Springer 2005 economic growth, limits to growth, pollution, population density, semi-endogenous growth, 4 2005 30 04 Environmental & Resource Economics 465 484 http://hdl.handle.net/10.1007/s10640-004-5985-z text/html Access to full text is restricted to subscribers. Clas Eriksson clas.eriksson@ekon.slu.se Ficre Zehaie
oai:RePEc:kap:enreec:v:31:y:2005:i:4:p:389-4032020-08-08RePEc:kap:enreec
article Double Dividend with Involuntary Unemployment: Efficiency and Intergenerational Equity double dividend, environmental tax, intergenerational equity, unemployment, 4 2005 31 08 Environmental & Resource Economics 389 403 http://hdl.handle.net/10.1007/s10640-005-2040-7 text/html Access to full text is restricted to subscribers. Mireille Chiroleu-Assouline assoulin@univ-paris1.fr Mouez Fodha
oai:RePEc:kap:enreec:v:8:y:1996:i:1:p:39-612020-08-08RePEc:kap:enreec
article Valuation and management of tropical forests This paper develops a framework for the valuation and management of tropical forests that reflects their ecological and economic characteristics. The analysis demonstrates the importance of modeling the feasible use patterns and the information structure in tropical forest management decisions. The model predicts that cases exist where the foresighted management of forests leads to more preservation than the traditional expected value approach. An application in Thailand provides evidence that such cases occur in relevant ranges of benefit flows. The model focuses tropical forest management on assessments of sustainability and feasible sequences in light of uncertainty and information flows. Copyright Kluwer Academic Publishers 1996 tropical forests, irreversibility, uncertainty, Thai parks, 1 1996 8 7 Environmental & Resource Economics 39 61 http://hdl.handle.net/10.1007/BF00340652 text/html Access to full text is restricted to subscribers. Heidi Albers Anthony Fisher W. Hanemann
oai:RePEc:kap:enreec:v:39:y:2008:i:1:p:1-72020-08-08RePEc:kap:enreec
article Nature in Economics Natural capital, Ecosystems, Inclusive wealth, GDP, Social well-being, Social discount rates, Population growth, 1 2008 39 1 Environmental and Resource Economics 1 7 http://hdl.handle.net/10.1007/s10640-007-9178-4 text/html Access to full text is restricted to subscribers. Partha Dasgupta Partha.Dasgupta@econ.cam.ac.uk
oai:RePEc:kap:enreec:v:48:y:2011:i:4:p:609-6282020-08-08RePEc:kap:enreec
article The Biodiversity Bargaining Problem Biodiversity, Incremental costs, International environmental agreements, Nash cooperative bargaining, North–south bargaining, Rational threats, Q15, Q16, Q21, O13, O34, 4 2011 48 4 Environmental and Resource Economics 609 628 http://hdl.handle.net/10.1007/s10640-010-9416-z text/html Access to full text is restricted to subscribers. Rupert Gatti Jrjg1@cam.ac.uk Timo Goeschl goeschl@eco.uni-heidelberg.de Ben Groom Bg3@soas.ac.uk Timothy Swanson tim.swanson@graduateinstitute.ch
oai:RePEc:kap:enreec:v:51:y:2012:i:4:p:473-4962020-08-08RePEc:kap:enreec
article Giving Stated Preference Respondents “Time to Think”: Results From Four Countries Stated preference, Hypothetical bias, Contingent valuation, Stated choice, 4 2012 51 4 Environmental and Resource Economics 473 496 http://hdl.handle.net/10.1007/s10640-011-9508-4 text/html Access to full text is restricted to subscribers. Joseph Cook jhcook@u.washington.edu Marc Jeuland marc.jeuland@duke.edu Brian Maskery bmaskery@ivi.int Dale Whittington dale_whittington@unc.edu
oai:RePEc:kap:enreec:v:35:y:2006:i:4:p:289-3252020-08-08RePEc:kap:enreec
article Transboundary Pollution in the Black Sea: Comparison of Institutional Arrangements This paper analyses the transboundary pollution between Romania and Ukraine, coastal states along the Black Sea, and studies the welfare consequences of institutional arrangements for controlling this problem. To achieve this goal, we use a dynamic and strategic framework. We compare in terms of total welfare for two countries a first-best case with three different institutional arrangements: the non-cooperative game of countries, the uniform emission policy and the constant emission policy as proposed by the Black Sea Commission. Our findings indicate that the non-cooperative game provides a better level of total welfare than the other rules. Copyright Springer 2006 Black Sea, dynamic games, environment, institutional arrangements, non-cooperative games, transboundary pollution, water pollution, C72, C73, Q5, Q53, 4 2006 35 12 Environmental and Resource Economics 289 325 http://hdl.handle.net/10.1007/s10640-006-9016-0 text/html Access to full text is restricted to subscribers. Basak Bayramoglu basak.bayramoglu@enpc.fr
oai:RePEc:kap:enreec:v:51:y:2012:i:4:p:545-5592020-08-08RePEc:kap:enreec
article Global Warming and Endogenous Technological Change: Revisiting the Green Paradox Global warming, Carbon taxes, Technological change, 4 2012 51 4 Environmental and Resource Economics 545 559 http://hdl.handle.net/10.1007/s10640-011-9511-9 text/html Access to full text is restricted to subscribers. Luca Spinesi lspinesi@uniroma3.it
oai:RePEc:kap:enreec:v:14:y:1999:i:4:p:463-4792020-08-08RePEc:kap:enreec
article De- and Reforestation: Stability, Instability and Limit Cycles The optimal intertemporal use of forests is a traditional and extensively investigated topic with recent emphasis on sustainable uses. The political discussion about the clearing of tropical forests adds a topical, policy dimension to this investigation. This study shows that cyclical policies -- i.e., clearing is followed by reforestation and then again clearing and so on indefinitely -- may be optimal. This possibility, which is due to two things -- the growth of biomass, such as trees, and the costs of clearing and reforestation -- is overlooked in the corresponding literature. As a consequence, it is possible that present clearing practices, observable in many developing countries, may be an optimal, yet transient policy, that will be followed by reforestation as the developed countries with again expanding forests indicate. Copyright Kluwer Academic Publishers 1999 forestry versus agriculture, intertemporal optimisation, stability analysis, limit cycles, Hopf bifurcation, 4 1999 14 12 Environmental and Resource Economics 463 479 http://hdl.handle.net/10.1023/A:1008307119588 text/html Access to full text is restricted to subscribers. Franz Wirl franz.wirl@ww.uni-magdeburg.de
oai:RePEc:kap:enreec:v:56:y:2013:i:2:p:277-3052020-08-08RePEc:kap:enreec
article The Fatter the Tail, the Fatter the Climate Agreement International climate negotiations take place in a setting where uncertainties regarding the impacts of climate change are very large. In this paper, we examine the influence of increasing the probability and impact of large climate change damages, also known as the ‘fat tail’, on the formation of an international mitigation agreement. We systematically vary the shape and location of the distribution of climate change damages using the stochastic version of the applied game-theoretical STACO model. Our aim is to identify how changes to the distributional form affect the stability of coalitions and their performance. We find that fatter upper tails increase the likelihood that more ambitious coalitions are stable as well as the performance of these stable coalitions. Fatter tails thus imply more successful, or ‘fatter’, international climate agreements. Copyright Springer Science+Business Media Dordrecht 2013 International climate negotiations, Climate change modelling, Fat tails, C79, H87, Q54, 2 2013 56 10 Environmental and Resource Economics 277 305 http://hdl.handle.net/10.1007/s10640-013-9642-2 text/html Access to full text is restricted to subscribers. Rob Dellink rob.dellink@wur.nl Thijs Dekker t.dekker@tudelft.nl Janina Ketterer ketterej@ebrd.com
oai:RePEc:kap:enreec:v:37:y:2007:i:1:p:297-3122020-08-08RePEc:kap:enreec
article How substitutable is natural capital? One of the recurring themes in the sustainability literature has been the extent to which a loss of natural capital can be made up for in welfare terms by an increase in other forms of capital. This issue was raised early on in the debate on sustainability by Pearce and has never really been resolved. This paper is an empirical attempt to measure the degree of substitutability between different forms of capital. A nested CES production function is used to allow flexibility in the estimated elasticities of substitution. Also, within this specification, natural resources and other inputs are combined in different levels of the function, thus allowing for different levels of substitutability. Institutional and economic indicators are also incorporated in the production function estimated. Results show that the elasticities derived from functions involving land resources were generally around one or greater, implying a fairly high degree of substitutability. Furthermore, changes in trade openness and private sector investment have a statistically significant and direct relationship on the efficiency of production and hence on income generation. No statistically significant relationship between income and any of the institutional indicators was found. Copyright Springer Science+Business Media, Inc. 2007 Natural resources, Nested CES production function, Wealth accounting, O47, Q24, Q32, 1 2007 37 5 Environmental and Resource Economics 297 312 http://hdl.handle.net/10.1007/s10640-007-9117-4 text/html Access to full text is restricted to subscribers. Anil Markandya anil.markandya@feem.it Suzette Pedroso-Galinato
oai:RePEc:kap:enreec:v:32:y:2005:i:3:p:337-3652020-08-08RePEc:kap:enreec
article Comparing Environmental Policy Instruments in the Presence of Imperfect Compliance – A Case Study In this paper, we aim to include rule making, implementation, monitoring and enforcement costs into the cost comparison of policy instruments. We use a simple partial equilibrium model and apply it to the textile industry. The model includes discrete abatement functions and costly monitoring and enforcement. The case study uses individual firm data to simulate the differences in abatement costs and compliance decisions between firms. We compare combinations of regulatory instruments (emission taxes, emission standards and technology standards) and enforcement instruments (criminal fines, civil fines and transaction offers). We show that the inclusion of information, monitoring and enforcement costs indeed alters the relative cost efficiency of the different instruments. Copyright Springer 2005 efficiency, environmental management, government policy, illegal behaviour and the enforcement of law, transaction costs, D23, D61, K42, Q2, Q28, 3 2005 32 11 Environmental & Resource Economics 337 365 http://hdl.handle.net/10.1007/s10640-005-6646-6 text/html Access to full text is restricted to subscribers. Sandra Rousseau Sandra.Rousseau@econ.kuleuven.be Stef Proost
oai:RePEc:kap:enreec:v:39:y:2008:i:2:p:55-742020-08-08RePEc:kap:enreec
article Carbon leakage revisited: unilateral climate policy with directed technical change Climate Policy, Carbon Leakage, Directed Technical Change, International Trade, F18, O33, Q54, Q55, 2 2008 39 2 Environmental and Resource Economics 55 74 http://hdl.handle.net/10.1007/s10640-007-9091-x text/html Access to full text is restricted to subscribers. Corrado Maria corrado.dimaria@ucd.ie Edwin Werf Edwin.vanderwerf@Ifw-Kiel.de
oai:RePEc:kap:enreec:v:57:y:2014:i:1:p:41-572020-08-08RePEc:kap:enreec
article Endogenous Lobby Formation and Endogenous Environmental Protection with Unilateral Tariff Reduction This paper studies how one country’s decision to liberalize trade affects the political economic structure that determines environmental policy in another country. By constructing a political economy model in which the formation of lobby groups and environmental policy are endogenously determined, we show that unilateral tariff reductions by a large country importing a polluting good will generate a lobby group with a relatively lower cost of organization in a small country exporting that good. A formulated lobby demands an inefficient environmental policy, and hence, the small country’s environmental regulations become less efficient. Then, we show that when a lobby already exists, unilateral tariff reductions result in the formation of a rival lobby and consequently make the small country’s environmental policy more efficient. Copyright Springer Science+Business Media Dordrecht 2014 Environmental policy, Lobbying, Political economy , Pollution tax, Trade and environment, F18, D72, Q56, Q58, 1 2014 57 1 Environmental and Resource Economics 41 57 http://hdl.handle.net/10.1007/s10640-013-9658-7 text/html Access to full text is restricted to subscribers. Shinya Kawahara kawahara@ris.ac.jp
oai:RePEc:kap:enreec:v:25:y:2003:i:1:p:51-632020-08-08RePEc:kap:enreec
article Reconciling the Green Accounts In an optimally managed economy, green nationalexpenditure is equal to the linearization of the Hamiltonian from theproblem of maximizing discounted social utility. Herein, we utilize theadjoint conditions to add to the basis for viewing green NNP as an index ofsocial utility under ideal conditions and to show the equality of netnational income and expenditure. The results apply even when returns toscale are increasing or decreasing. Unpriced, net environmental benefitsshould be incorporated into comprehensive NNP in much the same way as thedisutility of labor. Otherwise, current practices of the national accountscan be defended, including the treatment of capital gains. Copyright Kluwer Academic Publishers 2003 adjoint conditions, capital gains, green accounts, green NNP, returns to scale, 1 2003 25 5 Environmental and Resource Economics 51 63 http://hdl.handle.net/10.1023/A:1023657029623 text/html Access to full text is restricted to subscribers. Robert Cairns rdcairns@hotmail.com
oai:RePEc:kap:enreec:v:6:y:1995:i:3:p:231-2772020-08-08RePEc:kap:enreec
article Rethinking the costs related to global warming: A survey of the issues One approach to the economic analysis of global warming seeks to balance the costs of damage from or adaptation to it with the costs of mitigating it. The costs of adaptation and damage have been estimated using techniques of environmental evaluation, but are subject to a wide margin of uncertainty. The costs of mitigation, principally by reducing the emissions of CO 2 , have been estimated using different kinds of economic models, some of the results of which have suggested that very little abatement of carbon emissions is justified before the costs of abatement exceed the benefits of it in terms of foregone damage and adaptation costs. The paper analyses the extent to which this conclusion is a function of the modelling assumptions and techniques used, rather than likely practical outcomes, with regard to the models' treatment of unemployed resources, revenue recycling, prior distortions in the economy due to the tax system and possible dynamic effects from the introduction of a carbon-energy tax. It concludes that, with different and arguably more appropriate treatment of the above issues, especially when the secondary benefits of reducing CO 2 emissions are also taken into account, it is not clear that even substantial reductions in the use of fossil fuels will incur net costs, especially if there is the prospect of even moderate costs from global warming. Copyright Kluwer Academic Publishers 1995 Global warming, greenhouse gas abatement, carbon tax, 3 1995 6 10 Environmental & Resource Economics 231 277 http://hdl.handle.net/10.1007/BF00705981 text/html Access to full text is restricted to subscribers. Paul Ekins
oai:RePEc:kap:enreec:v:64:y:2016:i:4:d:10.1007_s10640-015-9893-12020-08-08RePEc:kap:enreec
article Re-exploring the Trade and Environment Nexus Through the Diffusion of Pollution Abstract Some scholars argue that trade liberalization results in the ‘outsourcing’ of pollution to pollution havens, and this may explain the existence of the environmental Kuznets curve (EKC) in industrialized countries. Others claim that trade liberalization effectively lessens pollution by allowing a more efficient use of resources and the diffusion of clean technologies. In part because these theories generate similar predictions for industrialized countries, empirical studies have not provided conclusive evidence for either argument. To identify the role of trade, I draw on the insights of the diffusion literature and estimate a spatial regression model where trade operates as the mechanism through which pollution shifts from country to country. Using the case of per-capita carbon dioxide $$(\hbox {CO}_2)$$ ( CO 2 ) emissions, I find that once spatial correlation is accounted for, the EKC disappears. The effect is even stronger when looking at trade from developing countries only, providing support for the pollution haven hypothesis. I also show that the $$\hbox {CO}_2$$ CO 2 trajectory of developing countries goes above the one previously followed by industrialized countries. This suggests that developing countries carry on an additional carbon burden above the one that would be obtained in the absence of trade. These findings contribute to the literature on the non-economic effects of trade and the constraints of domestic policies when the costs of trade are low. Trade, Environment, Carbon dioxide, Environmental Kuznets curve, Diffusion 4 2016 64 8 7 Environmental and Resource Economics 663 682 http://link.springer.com/10.1007/s10640-015-9893-1 text/html Abstract Michaël Aklin aklin@pitt.edu University of Pittsburgh University of Pennsylvania
oai:RePEc:kap:enreec:v:32:y:2005:i:3:p:419-4382020-08-08RePEc:kap:enreec
article Price Premiums for Eco-friendly Commodities: Are ‘Green’ Markets the Best Way to Protect Endangered Ecosystems? ‘Green’ markets represent a means through which public goods can be privately provided. A green product is an impure public good consisting of a private good (e.g., rain forest honey) bundled with a jointly produced public good (e.g., biodiversity protection). In the context of ecosystem protection, popular green commodities include eco-tourism excursions, coffee grown under forest canopies (‘shade-grown’), tagua nuts for buttons and ornaments, rainforest nuts and oils for cosmetic products, and rain forest honey. We examine the dynamic efficiency of eco-friendly price premiums in achieving ecosystem protection and rural welfare goals by contrasting the use of price premiums to the use of payments that are tied directly to ecosystem protection. We demonstrate analytically and empirically that direct payments are likely to be more efficient as a conservation policy instrument. Depending on the available funds, the direct payments may be better or worse than green price premiums in achieving rural welfare objectives. If direct payments are not feasible for social or political reasons, we demonstrate analytically and empirically that the price premium approach is likely to be more effective at achieving conservation and development objectives than the currently more popular policy of subsidizing capital acquisition in eco-friendly commercial activities. Copyright Springer 2005 conservation, dynamic efficiency, eco-label, ecosystem, payments, subsidies, H21, Q28, 3 2005 32 11 Environmental & Resource Economics 419 438 http://hdl.handle.net/10.1007/s10640-005-7962-6 text/html Access to full text is restricted to subscribers. Paul Ferraro pferraro@gsu.edu Toshihiro Uchida Jon Conrad
oai:RePEc:kap:enreec:v:45:y:2010:i:2:p:251-2692020-08-08RePEc:kap:enreec
article International Environmental Agreements as Evolutionary Games International environmental agreements, Evolutionary games, Externalities, Transfers, C73, C72, D62, D78, D63, 2 2010 45 2 Environmental and Resource Economics 251 269 http://hdl.handle.net/10.1007/s10640-009-9314-4 text/html Access to full text is restricted to subscribers. Matthew McGinty mmcginty@uwm.edu
oai:RePEc:kap:enreec:v:41:y:2008:i:4:p:541-5612020-08-08RePEc:kap:enreec
article Factors Determining Citizen’s Attitudes Towards Agri-Environmental Property Rights Agri-environmental policy, Property rights, Environmental implications, Institutional Economics, Citizen’s attitudes, 4 2008 41 12 Environmental and Resource Economics 541 561 http://hdl.handle.net/10.1007/s10640-008-9209-9 text/html Access to full text is restricted to subscribers. Esperanza Vera-Toscano evera@iesa.csic.es José Gómez-Limón Eduardo Moyano Fernando Garrido
oai:RePEc:kap:enreec:v:15:y:2000:i:2:p:115-1342020-08-08RePEc:kap:enreec
article Risk-Cost Analysis for the Regulation of Airborne Toxic Substances in a Developing Context: The Case of Arsenic in Chile Most developing countries are just beginning to takeenvironmental protection seriously. In some cases it is common tocopy regulations from developed countries; however, determininghow much protection is required is difficult, ideally requiringthat the costs and risks be considered to propose a realistic andeffective policy. Chile has serious problems with arsenicpollution associated to emissions from its copper smelters. Toregulate these emissions, a strict ambient concentrationstandard, applicable to the whole country, is being proposed thatreduces risks to an acceptable level. However, little is knownabout the exposure and health effects associated to currentemission levels, and the corresponding costs of reducingemissions. The results of a three-year project that combinesengineering, economics and health information sheds light onthese costs and risks for different values of ambient standards.These show that there are ``win--win'' options that obtainsignificant health improvements at low, even negative, costs.However, costs quickly increase as the concentration standardbecomes more stringent, with few additional health benefits. Inmany locations naturally high background levels of arsenic makeit very costly or even impossible to reach the desired goal.These results make it necessary to examine the use of a case-by-caseregulation for each source, rather than a general one basedon a unique ambient quality goal. They also suggest that copyingstandards or risk criteria used in developed contexts can beextremely expensive. Copyright Kluwer Academic Publishers 2000 developing countries, environmental management, pollution prevention, risk analysis, 2 2000 15 2 Environmental and Resource Economics 115 134 http://hdl.handle.net/10.1023/A:1008300206313 text/html Access to full text is restricted to subscribers. R. O'Ryan M. Díaz
oai:RePEc:kap:enreec:v:26:y:2003:i:3:p:385-4002020-08-08RePEc:kap:enreec
article Auction Design for the Allocation of Emission Permits in the Presence of Market Power To the extent that emission permits have been allocated using market mechanisms, this has been done using a sealed-bid auction design, typically with discriminatory prices. However, several authors have recommended the ascending auction format. Basically, two “competing” ascending auction designs have been suggested, the standard ascending auction (with clock or demand schedules), or an alternative ascending-clock implementation of Vickrey-pricing. The latter design was introduced as a response to problems of bid shading under the sealed-bid and the standard ascending auction format. The purpose of this paper is to investigate the allocation of permits under these two alternative mechanisms. The auction process and the resulting market outcome in the presence of oligopolistic competition are simulated. In this setting, it is not obvious that bid shading is the optimal strategy under the standard design, nor is it obvious that sincere bidding is the optimal strategy under the alternative ascending auction design. The alternative auction format makes it less costly to pursue a strategy to increase market shares through the acquisition of emission permits, thus increasing the competitor's costs, leading to overbidding as the optimal strategy. Copyright Kluwer Academic Publishers 2003 auctions, imperfect competition, multi-item auctions, oligopoly, strategic interaction, tradable emission permits, 3 2003 26 11 Environmental and Resource Economics 385 400 http://hdl.handle.net/10.1023/B:EARE.0000003583.49609.c7 text/html Access to full text is restricted to subscribers. Kjell Sunnevåg
oai:RePEc:kap:enreec:v:45:y:2010:i:1:p:113-1322020-08-08RePEc:kap:enreec
article Charges in the Industrial Water Sector: Comparison Between Ireland and Spain Externalities, Industrial charges, Water charges, Water Framework Directive, Water pricing policy, 1 2010 45 1 Environmental and Resource Economics 113 132 http://hdl.handle.net/10.1007/s10640-009-9308-2 text/html Access to full text is restricted to subscribers. Concepción Rey Mejías crm@tragsa.es Helena Lenihan helena.lenihan@ul.ie Bernadette O’Regan bernadette.oregan@ul.ie
oai:RePEc:kap:enreec:v:65:y:2016:i:2:d:10.1007_s10640-015-9915-z2020-08-08RePEc:kap:enreec
article Who Responds to Air Quality Alerts? Abstract This paper investigates behavioral response to air quality alert programs using detailed time diary data. Specifically, we investigate whether individuals targeted by mandatory air quality warnings respond by reducing time spent in proscribed activities—the most important of which are outdoor activities that raise breathing and heart rates—thereby mitigating the health effects of pollutants on high-pollution days. We find that individuals engage in averting behavior on alert days by reducing the time they spend in vigorous outdoor activities by 18 % or 21 min on average. We find differential responses to alerts, with the largest responses amongst the elderly. Air quality, Ozone, Avoidance behavior, Information, Time use 2 2016 65 10 8 Environmental and Resource Economics 487 511 I18 Q53 Q5 http://link.springer.com/10.1007/s10640-015-9915-z text/html Abstract Alison L. Sexton Ward alison.s.leigh@gmail.com Precision Health Economics Timothy K. M. Beatty tbeatty@ucdavis.edu University of California, Davis
oai:RePEc:kap:enreec:v:65:y:2016:i:3:d:10.1007_s10640-016-0038-y2020-08-08RePEc:kap:enreec
article Regime Shifts and Resilience in Fisheries Management: A Case Study of the Argentinean Hake fishery Abstract We investigate the role of potential regime shifts in Argentinean hake fishery and the inter-linkage between ecological and economic resilience. We develop a theoretical model incorporated with the hazard function for resource management under alternative conditions, and derive the corrective tax. Applying the model to the case of Argentinean hake fishery, we obtain insights for fishery management in the presence of risk for a regime shift. Based on three value functions, our model simulation indicates that the higher the relative loss from the fishery collapse, the more important the risk management would be with the resilience value taken into account. A higher level of fish stock leads to a higher optimized value and a lower corrective tax rate. When the stock level is lower, we need to introduce a higher tax rate to best avoid the fishery collapse. Decomposing the marginal value of the fish stock into a stock service value for fish production and a resilience value for flip risk reduction, we find that a higher fish stock leads to a lower tax rate because of the higher resilience of the fish stock, and hence the corrective tax rate as an instrument for managing fishery becomes less important. Regime shifts, Resilience, Corrective tax, Marine ecosystems, Argentinean hake fishery (Merluccius hubbsi) 3 2016 65 11 6 Environmental and Resource Economics 623 637 http://link.springer.com/10.1007/s10640-016-0038-y text/html Abstract Chuan-Zhong Li Uppsala University Royal Swedish Academy of Sciences Ningbo University Sebastian Villasante sebastian.villasante@usc.es International Campus of Excellence University of Santiago de Compostela Xueqin Zhu Wageningen University
oai:RePEc:kap:enreec:v:5:y:1995:i:1:p:9-272020-08-08RePEc:kap:enreec
article Dynamics of pollution control when damage is sensitive to the rate of pollution accumulation Economic models which take into account the long-term effects of pollution in the environment specify pollution damage as a function of the accumulated stock. Several economists have proposed another formulation where damage is a function of the time derivative of the pollution stock. This paper considers the intertemporal efficiency implications of this formulation. The first specification is qualitative and the objective functional includes both the rate of change and the level of the pollution stock. The second specification is a stylized climate change model with a linear damage function where damage depends only on the rate of increase in global temperature. The analysis reveals that the efficiency properties of optimal pollution control are very sensitive to this change in the damage function. Intertemporal efficiency may require higher emissions compared with the level which is optimal from the myopic point of view. An increase in the rate of discount typically reduces the optimal emission level. Copyright Kluwer Academic Publishers 1995 Pollution control, CO 2 , 1 1995 5 1 Environmental & Resource Economics 9 27 http://hdl.handle.net/10.1007/BF00691907 text/html Access to full text is restricted to subscribers. Olli Tahvonen
oai:RePEc:kap:enreec:v:22:y:2002:i:1:p:185-2172020-08-08RePEc:kap:enreec
article A Systematic Assessment of the Environmental Impacts of Transport Policy This paper presents an integrated urbanpassenger transport model system for evaluatingthe impact of a large number of interrelatedpolicy instruments on urban travel behaviourand the environment. The model system has fourintegrated modules defining household locationand automobile choices, commuter workplace andcommuting travel choices, non-commuting travelactivity, and worker distributed workpractices. The demand model system, estimatedas a set of discrete and continuous choicemodels, is combined with a set of equilibratingcriteria in each of the location, automobileand commuting markets to predict overall demandfor passenger travel in various socio-economicsegments, automobile classes and geographiclocations. We illustrate the diversity of thesystem by applying the integrated system toPerth (Western Australia), in the context ofassessing their impacts on greenhouse gasemissions. The model system is embedded withina decision support system to make it anattractive suite of tools for practitioners. Copyright Kluwer Academic Publishers 2002 global warming, scenarios, systems planning, transport models, 1 2002 22 6 Environmental and Resource Economics 185 217 http://hdl.handle.net/10.1023/A:1015527601997 text/html Access to full text is restricted to subscribers. David Hensher davidh@its.usyd.edu.au
oai:RePEc:kap:enreec:v:11:y:1998:i:3:p:335-3482020-08-08RePEc:kap:enreec
article Road Transport Externalities During the last decade much progress has been made in defining & measuring the external costs of transport. As the cost of tolling equipment falls, the set of realistic policy options to internalise these externalities will continue to grow. This will determine the research and policy agenda. We make three points. Firstly, empirical work is still necessary to better identify marginal external costs, including congestion, accident and environmental costs. Secondly, any assessment of policy options should treat externalities simultaneously. The use of pricing instruments and emissions standards are discussed within this framework. Thirdly, we emphasise the role of government. Designing the optimal road-pricing institutions requires consideration of horizontal and vertical tax competition, while double-dividend arguments are central to the question of securing public support. Copyright Kluwer Academic Publishers 1998 environment, external costs, policy, transport, 3 1998 11 4 Environmental and Resource Economics 335 348 http://hdl.handle.net/10.1023/A:1008267917001 text/html Access to full text is restricted to subscribers. Edward Calthrop stef.proost@econ.kuleuven.ac.be Stef Proost stef.proost@econ.kuleuven.ac.be
oai:RePEc:kap:enreec:v:53:y:2012:i:4:p:533-5522020-08-08RePEc:kap:enreec
article A Sectoral Approach Balancing Global Efficiency and Equity This paper explores the idea that a properly designed sectoral approach could be the answer to two sets of constraints that hinder international agreements on climate change, namely a genuine concern from developing countries for economic growth and competitiveness issues from industrialized countries. Our sectoral approach builds on three premises: (i) cap-and-trade systems are established in industrialized countries and intensity targets in developing countries, (ii) sectors subject to international trade abide by the rules of the countries in which they trade and (iii) a fraction of the revenues from permits in industrialized countries go towards carbon mitigation in developing countries. We design an economic model that features interactions in three carbon-intensive sectors (two of which are internationally traded) and two countries (an industrialized country and a developing country). Two scenarios are constructed: an Enhanced Sectoral Approach, which refers to our proposal, and a Global Cap, which implements a uniform CO 2 price. We compare the two scenarios in terms of total welfare and equity. It is shown that, for a minor global welfare loss, the Enhanced Sectoral Approach ranks high in terms of equity for emerging countries. This approach also eliminates competitiveness and leakage issues. Copyright Springer Science+Business Media B.V. 2012 Climate policy, International agreement, Sectoral approach, Equity, Competitiveness, D63, Q56, F18, H23, 4 2012 53 12 Environmental and Resource Economics 533 552 http://hdl.handle.net/10.1007/s10640-012-9575-1 text/html Access to full text is restricted to subscribers. Guy Meunier guy.meunier@polytechnique.edu Jean-Pierre Ponssard
oai:RePEc:kap:enreec:v:36:y:2007:i:4:p:389-4112020-08-08RePEc:kap:enreec
article Public Preferences for Hydrogen Buses: Comparing Interval Data, OLS and Quantile Regression Approaches We use a quantile regression (QR) approach to analyse contingent valuation estimates of public willingness to pay (WTP) for the air and noise pollution reductions associated with the introduction of hydrogen buses in London. QR results show that variables that were not significant in interval regression or ordinary least squares regression become significant at certain quantiles along the WTP distribution. In addition, the determinants of WTP at the lower tail of the distribution differ from those at the higher end of the distribution. Our findings illustrate the usefulness of quantile regression methods for analysing contingent valuation data, enhancing our understanding of the determinants of willingness to pay. Copyright Springer Science+Business Media, Inc. 2007 contingent valuation, hydrogen, interval data, OLS, quantile regression, 4 2007 36 4 Environmental and Resource Economics 389 411 http://hdl.handle.net/10.1007/s10640-006-9024-0 text/html Access to full text is restricted to subscribers. Tanya O’Garra Susana Mourato s.mourato@imperial.ac.uk
oai:RePEc:kap:enreec:v:60:y:2015:i:4:p:579-5812020-08-08RePEc:kap:enreec
article Accounting Price of an Exhaustible Resource: A Comment In a paper titled “Wealth Accounting, Exhaustible Resources and Social Welfare”, Hamilton and Ruta (Environ Resour Econ 42(1):53–64, 2009 ) derived accounting price for an exhaustible resource in Eq. (18), in the so-called “El Serafy economy” (El Serafy in Environmental accounting for sustainable development. The World Bank, Washington, 1989 ). However, the result is not plausible since they improperly replace constant extraction in the value of the resource stock (Eq. 17) with current resource stock divided by reserve life in their derivation. In the short comment, I show that the accounting price should be the same as the unit “user cost” defined by El Serafy (Environmental accounting for sustainable development. The World Bank, Washington, 1989 ). Copyright Springer Science+Business Media Dordrecht 2015 Environmental accounting, Exhaustible resources, Genuine saving, Social welfare, Q01, Q03, 4 2015 60 4 Environmental and Resource Economics 579 581 http://hdl.handle.net/10.1007/s10640-014-9780-1 text/html Access to full text is restricted to subscribers. Taoyuan Wei taoyuan.wei@cicero.uio.no
oai:RePEc:kap:enreec:v:59:y:2014:i:4:p:503-5232020-08-08RePEc:kap:enreec
article Why do People Care about Sea Lions? A Fishing Game to Study the Value of Endangered Species Previous research proposes that human beings are motivated to protect endangered species for various reasons: consumptive use value, non-consumptive use value, non-use value, and intrinsic value. However, it has been difficult to tease apart these values at the behavioral level. Using an innovative fishing game, we study an important tradeoff between one kind of use value (monetary value) and one kind of non-use value (existence value) of the endangered Steller sea lion. In the fishing game, players make repeated decisions on how much pollock to harvest for profit in each period in a dynamic ecosystem. The population of the endangered sea lion depends on the population of pollock, which in turn depends on the harvesting behavior of humans. The data show that in general, people responded to the financial value (as a tourist resource), but not the existence value, of the sea lion by cutting down commercial fish harvesting to keep more sea lions in the ecosystem. However, not all people behaved the same regarding the existence value. Females displayed a higher existence value than males, as did people who reported stronger pro-environmental attitudes than those with weaker pro-environmental attitudes. Our findings have multiple implications on public opinion elicitation and public policy design. Copyright Springer Science+Business Media Dordrecht 2014 Endangered species, Valuation, Behavior economics , Fishery game, Resource management, 4 2014 59 12 Environmental and Resource Economics 503 523 http://hdl.handle.net/10.1007/s10640-013-9746-8 text/html Access to full text is restricted to subscribers. Min Gong mingong@gmail.com Geoffrey Heal
oai:RePEc:kap:enreec:v:29:y:2004:i:3:p:307-3222020-08-08RePEc:kap:enreec
article The Inada Conditions for Material Resource Inputs Reconsidered It is shown that the thermodynamic law of conservation of mass, the so-called Materials-Balance-Principle, implies that the marginal product as well as the average product of a material resource input are bounded from above. This means that the Inada conditions, one of the standard assumptions of economic growth theory, when applied to material resource inputs are inconsistent with a basic law of nature. The analysis is based on a model of multi-level production where intermediate goods are produced from elementary resources, and an all-purpose final commodity is produced from these intermediates. Copyright Kluwer Academic Publishers 2004 conservation of mass, Inada conditions, materials balance principle, natural resources, production function, thermodynamics, 3 2004 29 11 Environmental and Resource Economics 307 322 http://hdl.handle.net/10.1007/s10604-003-5267-5 text/html Access to full text is restricted to subscribers. Stefan baumgärtner
oai:RePEc:kap:enreec:v:47:y:2010:i:1:p:149-1502020-08-08RePEc:kap:enreec
article Richard H. Thaler and Cass R. Sunstein: Nudge: Improving Decisions About Health, Wealth, and Happiness 1 2010 47 9 Environmental and Resource Economics 149 150 http://hdl.handle.net/10.1007/s10640-010-9363-8 text/html Access to full text is restricted to subscribers. Brendan Fisher bpfisher@Princeton.edu
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article International Environmental Agreements for River Sharing Problems We study partial coalition formation and the strategic timing of membership of an IEA for environmental issues in the Coalitional Bargaining Game (CBG) of Gomes (Econometrica 73:1329–1350, 2005 ). We apply the CBG to a specific river sharing problem with two symmetric upstream agents, each at a tributary, and one downstream agent located at the junction of tributaries. We identify five regions in the parameter space of a discount factor and a productivity parameter for water. In one region the grand coalition always forms immediately. In two other regions, immediate formation of the grand coalition and gradual coalition formation both occur with positive probability. In another two regions only gradual coalition formation occurs. In one of these latter regions, a region with discount factors close to one, both upstream agents form a monopoly with positive probability. Formation of the monopoly persists in the limit as the discount factor goes to one. Copyright Springer Science+Business Media Dordrecht 2015 International environmental agreements, River sharing problem, Negotiations, Coalitional bargaining game, Markov perfect equilibrium, Efficiency, Monopoly, C78, Q25, 4 2015 62 12 Environmental and Resource Economics 855 872 http://hdl.handle.net/10.1007/s10640-014-9862-0 text/html Access to full text is restricted to subscribers. Harold Houba harold.houba@vu.nl Gerard Laan g.vander.laan@vu.nl Yuyu Zeng y.zeng@vu.nl
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article On the Role of Green Taxes in Social Accounting This paper addresses social accounting numerically in a dynamic generalequilibrium model. The main purposes are to study: (i) whether emissiontaxes based on static willingness to pay information can be used to improvethe welfare level, and; (ii) whether these taxes provide close enoughapproximations of the correct Pigouvian emission tax to be useful in thecontext of social accounting. The results indicate that, if environmentalquality is relatively linear with respect to pollution, the approximation ofthe Pigouvian emission tax will bring the economy close to the sociallyoptimal solution and, at the same time, provide a close approximation of thevalue of net investments in environmental capital. Copyright Kluwer Academic Publishers 2003 Pigouvian taxes, social accounting, 1 2003 25 5 Environmental and Resource Economics 33 50 http://hdl.handle.net/10.1023/A:1023660017907 text/html Access to full text is restricted to subscribers. Kenneth Backlund
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article Beyond IPCC, Research for Paris 2015 and Beyond 2 2015 62 10 Environmental and Resource Economics 207 215 http://hdl.handle.net/10.1007/s10640-015-9966-1 text/html Access to full text is restricted to subscribers. Thomas Sterner thomas.sterner@economics.gu.se
oai:RePEc:kap:enreec:v:13:y:1999:i:4:p:397-4142020-08-08RePEc:kap:enreec
article Modeling Overnight Recreation Trip Choice: Application of a Repeated Nested Multinomial Logit Model In this paper we apply the repeated nested multinomial logit model, a version of a random utility model (RUM), to estimate the choice of an overnight versus single day recreation trip, along with the other usual choice of which of the sites to visit, and less typically, the choice of whether to participate (in our application – to fish) at all. We also find statistically significant income effects in the empirical results. The application is to Atlantic Salmon fishing and the data set is for Maine resident angler's fishing trips to rivers in Maine and Canada. Copyright Kluwer Academic Publishers 1999 repeated nested multinomial logit, RUM, recreation demand, salmon fishing, trip length decisions, 4 1999 13 6 Environmental and Resource Economics 397 414 http://hdl.handle.net/10.1023/A:1008218803875 text/html Access to full text is restricted to subscribers. W. Shaw wdshaw@unr.edu Michael Ozog
oai:RePEc:kap:enreec:v:23:y:2002:i:3:p:255-2782020-08-08RePEc:kap:enreec
article Strategic Preemption in a Common Property Resource: A Continuous Time Approach The threat of future entry affects the exploitation of common property resources in important ways. An incumbent has a strategic incentive to manipulate the resource stock to deter entry or to harvest more stock prior to entry rather than share the resource with the entrant. It is possible that the threat of potential entry can lead to the extinction of the resource even though actual competition would result in a steady state with a positive stock level. Copyright Kluwer Academic Publishers 2002 3 2002 23 11 Environmental and Resource Economics 255 278 http://hdl.handle.net/10.1023/A:1021288205689 text/html Access to full text is restricted to subscribers. Charles Mason Stephen Polasky
oai:RePEc:kap:enreec:v:8:y:1996:i:1:p:1-132020-08-08RePEc:kap:enreec
article On International compensations for environmental stocks This paper sheds some light on the possible implications of compensations which are paid for the maintenance of an environmental stock. It shows that serious complications can arise if the resource-owner may influence the compensation price strategically. If the incentive to raise the compensation price dominates the preservation incentive, the steady-state stock falls short from that which is voluntarily held. Whether compensation policies can neglect this feature depends crucially on the institutional setting which determines the compensation price. Copyright Kluwer Academic Publishers 1996 international compensations, strategic behaviour, international environmental problems, environmental stocks, 1 1996 8 7 Environmental & Resource Economics 1 13 http://hdl.handle.net/10.1007/BF00340650 text/html Access to full text is restricted to subscribers. Frank Stähler
oai:RePEc:kap:enreec:v:61:y:2015:i:2:p:165-1892020-08-08RePEc:kap:enreec
article Effect of Technology Change on $$\hbox {CO}_{2}$$ CO 2 Emissions in Japan’s Industrial Sectors in the Period 1995–2005: An Input–Output Structural Decomposition Analysis This paper employs two-stage input–output structural decomposition analysis (SDA) to identify the factors responsible for changes in Japan’s $$\hbox {CO}_{2}$$ CO 2 emissions for two periods: 1995–2000 and 2000–2005. First, the study decomposes the total change in $$\hbox {CO}_{2}$$ CO 2 emissions for each period to obtain the contribution of change in $$\hbox {CO}_{2}$$ CO 2 emissions per unit output $$(\hbox {CO}_{2}$$ ( CO 2 emissions coefficient), change in technology (technology effect), and change in final demand. The study observed from the first-stage decomposition that emissions coefficient and final demand drive the change in the first period (1995–2000) while the technology effect drives the change in the second period (2000–2005). The high contribution of the technology effect is driven by activities of iron and steel; coke, refined petroleum and gas; road transportation; and electricity sectors. Having observed the trend of the technology effect across the two periods, the study carried out a second-stage decomposition on technology effect in the second period to examine the contribution of each sector and observed that chemical and pharmaceuticals; iron and steel; road transportation; and construction sectors are mainly responsible. In conclusion, improvement in technical efficiency especially at the industrial process level of each industry will help Japan achieve greater level of $$\hbox {CO}_{2}$$ CO 2 emissions reduction. Copyright Springer Science+Business Media Dordrecht 2015 $$\hbox {CO}_{2}$$ CO 2 emissions, Input–output, Structural decomposition analysis, Technology change, Japan, 2 2015 61 6 Environmental and Resource Economics 165 189 http://hdl.handle.net/10.1007/s10640-014-9787-7 text/html Access to full text is restricted to subscribers. Uduak Akpan uduaksakpan@gmail.com Ovunda Green oagreen@yahoo.co.uk Subhes Bhattacharyya subhesb@dmu.ac.uk Salisu Isihak risalisu@gmail.com
oai:RePEc:kap:enreec:v:51:y:2012:i:3:p:413-4292020-08-08RePEc:kap:enreec
article Random Regret Minimization: Exploration of a New Choice Model for Environmental and Resource Economics Random regret minimization, Random utility maximization, Discrete choice modelling, Outdoor recreation, Environmental policy, 3 2012 51 3 Environmental and Resource Economics 413 429 http://hdl.handle.net/10.1007/s10640-011-9505-7 text/html Access to full text is restricted to subscribers. Mara Thiene mara.thiene@unipd.it Marco Boeri mboeri01@qub.ac.uk Caspar Chorus c.g.chorus@tudelft.nl
oai:RePEc:kap:enreec:v:18:y:2001:i:3:p:317-3372020-08-08RePEc:kap:enreec
article Property Regimes as Information Regimes: Efficiency and Economies of Joint Production The paper argues that it is useful to view property regimes asinformation regimes. A conceptual model and numerical example are usedto show that, under some reasonable assumptions, a common propertyregime is preferable to a private property regime when property regimesare viewed as information regimes. The paper considers a case ofidiosyncratic risk in a dynamic grazing context where the marginality ofthe resource is such that insurance markets are thin or non-existent.Agents are thought to be risk averse and exogenous enforcement of a risksharing scheme is not feasible. The policy implication is that theestablishment and maintenance of a common property regime is shown to bea (possibly) reasonable institutional response in the face of difficultand particular circumstances when property regimes are viewed asinformation regimes. Copyright Kluwer Academic Publishers 2001 economies of joint production, information, property regimes, risk sharing, transaction costs, 3 2001 18 3 Environmental and Resource Economics 317 337 http://hdl.handle.net/10.1023/A:1011109326298 text/html Access to full text is restricted to subscribers. Scott Steele scott.steele@nuigalway.ie
oai:RePEc:kap:enreec:v:63:y:2016:i:2:d:10.1007_s10640-015-9942-92020-08-08RePEc:kap:enreec
article The Environmental Kuznets Curve and the Structural Change Hypothesis Abstract We provide a very simple macroeconomic investigation of the role that structural changes might play in generating inverted U-shaped income–pollution relationships. Differently from previous research which mainly focuses on empirical, static or general equilibrium models, we develop a standard balanced growth path (BGP) analysis. We show that along the BGP equilibrium an inverted U-shaped income–pollution relationship may occur as a response to structural changes, but whether this is the case or not it will crucially depend upon the magnitude of a production externality parameter. Moreover, we show that the negative relationship between income and pollution can only be a transitory phenomenon, and in the long run pollution will increase as income rises, generating overall an N-shaped pattern. Environmental Kuznets curve, Economic growth, Structural change 2 2016 63 2 4 Environmental and Resource Economics 265 288 O40 O41 Q50 Q56 http://link.springer.com/10.1007/s10640-015-9942-9 text/html Abstract Simone Marsiglio simonem@uow.edu.au University of Wollongong Alberto Ansuategi alberto.ansuategi@ehu.es University of the Basque Country Maria Carmen Gallastegui mariacarmen.gallastegui@ehu.es University of the Basque Country
oai:RePEc:kap:enreec:v:5:y:1995:i:1:p:51-702020-08-08RePEc:kap:enreec
article Market-based systems for reducing chemical use in agriculture in the United States This study uses a computable general equilibrium (CGE) model of the U.S. economy to estimate the economic effects of agricultural fertilizer and pesticide input reductions on individual farm sectors, and on the economy as a whole. The costs of reducing agricultural chemicals using a market-based approach and a command-and-control approach are compared. The real cost to society of restrictng fertilizer and pesticide use by 20-percent across all uses is estimated to be $2.3 billion. A market-based approach that would provide incentives to reduce chemical use in the most cost efficient manner would be about 10-percent less costly. Copyright Kluwer Academic Publishers 1995 Agriculture, nonpoint source pollution, pesticide, fertilizer, computable general equilibrium model, chemical charges, tradeable input permits, command-and-control, chemical reduction costs, 1 1995 5 1 Environmental & Resource Economics 51 70 http://hdl.handle.net/10.1007/BF00691909 text/html Access to full text is restricted to subscribers. C. Rendleman Kenneth Reinert James Tobey
oai:RePEc:kap:enreec:v:35:y:2006:i:3:p:221-2572020-08-08RePEc:kap:enreec
article Empirical Analysis of National Income and SO 2 Emissions in Selected European Countries The linkage between per capita GDP and sulfur emissions for 12 Western European countries was analyzed over a period of more than 150 years. The analysis also looked at the impact of air pollution regulations on the shape of the income–pollution relationship. At both the aggregate and country levels, we find an inverted U-shaped relationship and the estimated turning points of most countries are plausible. In addition, environmental regulations are found to lower the EKC and they can also shift the turning point of the curve. In some cases, the shift is to the left and in a few to the right. Copyright Springer Science+Business Media, Inc. 2006 environmental Kuznets curve, panel data, regulation, sulfur dioxide, Western Europe, C23, O11, Q25, Q28, 3 2006 35 11 Environmental and Resource Economics 221 257 http://hdl.handle.net/10.1007/s10640-006-9014-2 text/html Access to full text is restricted to subscribers. Anil Markandya anil.markandya@feem.it Alexander Golub Suzette Pedroso-Galinato
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article Optimal Pollution Abatement Under ‘Sustainable’ and Other Social Time Preferences This paper analyses optimal pollution abatement expenditure and the pricing of pollution under alternative social time preferences, including ‘sustainable’ preferences, defined as those that are consistent with two axioms of sustainable development introduced by Chichilnisky (Land Econ 73:467–491, 1997 ). These axioms state essentially that neither the welfare of present nor future generations ought to be favoured over the other in determining the socially optimal path of economic development. The method is to calibrate a modified Ramsey model of optimal global growth and saving, where pollution is generated by the global output of goods and services. Pollution in turn reduces output. The simulation results illustrate how sensitive the optimal pollution price and abatement expenditure can be over time to assumptions about the social time preference rate. They also show that ‘sustainable’ preferences impose a lower burden on future generations in terms of the pollution price and abatement expenditure. Hence there is a case for governments to make explicit their value judgments about intergenerational welfare, in the context of their notion of sustainable development, when setting target pollution abatement levels and pollution prices over time. Copyright Springer Science+Business Media Dordrecht 2014 Pollution abatement, Social time preference, Pollution price, 3 2014 58 7 Environmental and Resource Economics 373 390 http://hdl.handle.net/10.1007/s10640-013-9704-5 text/html Access to full text is restricted to subscribers. Ross Guest r.guest@griffith.edu.au
oai:RePEc:kap:enreec:v:28:y:2004:i:4:p:409-4342020-08-08RePEc:kap:enreec
article Landfill Construction and Capacity Expansion We study the optimal capacity and lifetime of landfills taking into account their sequential nature. Such an optimal capacity is characterized by the so-called Optimal Capacity Condition. Particular versions of this condition are obtained for two alternative settings: first, if all the landfills are to have the same capacity, and second, if each of them is allowed to have a different capacity. In the second case we obtain an optimal control problem, with mixed elements of both continuous and discrete time. The resulting optimization problems involve dividing a time horizon of planning into several subintervals of endogenously decided length. The results obtained may be useful to address other economic problems such as private and public investments, consumption decisions on durable goods, etc. Copyright Kluwer Academic Publishers 2004 landfills, non-renewable resources, optimal capacity, optimal control, set-up costs, 4 2004 28 8 Environmental and Resource Economics 409 434 http://hdl.handle.net/10.1023/B:EARE.0000036781.00132.87 text/html Access to full text is restricted to subscribers. Francisco André Emilio Cerdá ececo08@sis.ucm.es
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article Editor's Note 3 2003 25 7 Environmental and Resource Economics 255 256 http://hdl.handle.net/10.1023/A:1024413127758 text/html Access to full text is restricted to subscribers. R. Turner Ian Bateman
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article Non-cooperative and Cooperative Responses to Climate Catastrophes in the Global Economy: A North–South Perspective Abstract The optimal response to a potential productivity shock which becomes more imminent with global warming is to have carbon taxes to curb the risk of a calamity and to accumulate precautionary capital to facilitate smoothing of consumption. This paper investigates how differences between regions in terms of their vulnerability to climate change and their stage of development affect the cooperative and non-cooperative responses to this aspect of climate change. It is shown that the cooperative response to these stochastic tipping points requires converging carbon taxes for developing and developed regions. The non-cooperative response leads to a bit more precautionary saving and diverging carbon taxes. We illustrate the various outcomes with a simple stylized North–South model of the global economy. Global warming, Tipping point, Precautionary capital, Growth, Risk avoidance, Carbon tax, Free riding, International cooperation, Asymmetries 3 2016 65 11 2 Environmental and Resource Economics 519 540 D81 H20 O40 Q31 Q38 http://link.springer.com/10.1007/s10640-016-0037-z text/html Abstract Frederick Ploeg rick.vanderploeg@economics.ox.ac.uk University of Oxford VU University Amsterdam St. Petersburg State University Aart Zeeuw A.J.deZeeuw@uvt.nl Tilburg University Beijer Institute of Ecological Economics
oai:RePEc:kap:enreec:v:33:y:2006:i:2:p:265-2662020-08-08RePEc:kap:enreec
article Book Review: Thomas Sterner 2003. Policy Instruments for Environmental and Natural Resource Management. RFF Press, Washington DC. 504 pp. Hardcover, ISBN 1-891853-13-9/$75.00, Paperback, ISBN 1-891853-12-0/$36.95. 2 2006 33 02 Environmental & Resource Economics 265 266 http://hdl.handle.net/10.1007/s10640-005-3859-7 text/html Access to full text is restricted to subscribers. Henk Folmer Henk.Folmer@wur.nl
oai:RePEc:kap:enreec:v:34:y:2006:i:3:p:385-4062020-08-08RePEc:kap:enreec
article An Empirical Bayes Approach to Combining and Comparing Estimates of the Value of a Statistical Life for Environmental Policy Analysis An empirical Bayes pooling method is used to combine and compare estimates of the value of a statistical life (VSL). The data come from 40 selected studies published between 1974 and 2002, containing 197 VSL estimates. The estimated composite distribution of empirical Bayes adjusted VSL has a mean of $5.4 million and a standard deviation of $2.4 million. The empirical Bayes method greatly reduces the variability around the pooled VSL estimate. The pooled VSL estimate is influenced by the choice of valuation method, study location, and union status of sample but not to the source of data on occupational risk or the consideration of non-fatal risk injury. Copyright Springer 2006 value of a statistical life (VSL), empirical Bayes estimate, environmental policy, health policy, contingent valuation method, hedonic wage method, J17, C11, Q28, 3 2006 34 7 Environmental and Resource Economics 385 406 http://hdl.handle.net/10.1007/s10640-006-9000-8 text/html Access to full text is restricted to subscribers. Ikuho Kochi Bryan Hubbell Randall Kramer kramer@duke.edu
oai:RePEc:kap:enreec:v:57:y:2014:i:1:p:1-182020-08-08RePEc:kap:enreec
article Pollution Haven with Technological Externalities Arising from Foreign Direct Investment This paper presents a two-stage game, in which in the first stage two multinational firms (MNFs) seeking pollution havens choose a location, that is, whether to export to or undertake FDI in the host country, and in the second stage, these two MNFs and a firm in the host country play a Cournot game. The MNFs’ location decisions are influenced by the fixed cost of FDI, the spillover of technologies to a foreign firm, and pollution emission standards in the host and home countries. There exist multiple equilibria in the location pattern because of the technology spillover accompanied by FDI. In addition, the analysis leads to the possibility of an equilibrium based on the Prisoners’ Dilemma. When the host country relaxes emission standards, the MNFs choose FDI, although their profits are higher if both choose to export instead. This provides a rationale for the FDI source country’s intervention to restrict the MNFs’ FDI according to the level of environmental regulation in the host country. Copyright Springer Science+Business Media Dordrecht 2014 Fixed cost, FDI, Plant location, Pollution haven, Prisoners’ Dilemma, International technology spillover, F18, Q56, R38, 1 2014 57 1 Environmental and Resource Economics 1 18 http://hdl.handle.net/10.1007/s10640-013-9655-x text/html Access to full text is restricted to subscribers. Ki-Dong Lee kdlee@kmu.ac.kr Woohyung Lee iuh1231@kmu.ac.kr Kichun Kang kikang@ynu.ac.kr
oai:RePEc:kap:enreec:v:59:y:2014:i:3:p:433-4542020-08-08RePEc:kap:enreec
article Hypothetical Bias Reconsidered: Payment and Provision Uncertainties in a Threshold Provision Mechanism We extend research on the consequentiality of stated preference choices to a threshold provision mechanism for public goods. We develop a simple theoretical model of option price to analyze how option price varies with payment and provision uncertainty. We explore whether threshold provision contributions are similarly influenced by payment and provision uncertainty using an induced value contribution experiment. Results suggest that: (1) the probability of payment has a negative effect on contributions; (2) the probability of provision has a positive effect on contributions. We offer subjective beliefs regarding payment and provision as a plausible systematic explanation for hypothetical bias. Copyright Springer Science+Business Media Dordrecht 2014 Hypothetical bias, Induced-values, Payment uncertainty, Provision uncertainty, Stated preferences, Threshold public goods game, C91, H41, Q51, 3 2014 59 11 Environmental and Resource Economics 433 454 http://hdl.handle.net/10.1007/s10640-013-9741-0 text/html Access to full text is restricted to subscribers. Yohei Mitani yomitani@gmail.com Nicholas Flores nicholas.flores@colorado.edu
oai:RePEc:kap:enreec:v:37:y:2007:i:2:p:445-4632020-08-08RePEc:kap:enreec
article Flows of Air Pollution, Ill Health and Welfare We provide a theoretical framework for measuring welfare when pollution influences economic growth by impairing health and driving up defensive medical expenditures. We demonstrate the usefulness of our framework in practice by applying it to data from Swedish valuation studies designed according to the accounting principles suggested here. We estimate that the negative health effects of nitrogen dioxide emissions amount to 0.6% of GDP in Sweden. We also show that a corrective Pigouvian tax should internalize the direct disutility, reduced labor productivity, and increased healthcare expenditures caused by pollution. According to our calculations, harmful health impacts alone (excluding ecosystem effects) justify 65% of the current Swedish tax on nitrogen dioxide. Copyright Springer Science+Business Media, Inc. 2007 defensive expenditures, externalities, green accounting, respiratory illnesses, I10, O4, Q25, 2 2007 37 6 Environmental and Resource Economics 445 463 http://hdl.handle.net/10.1007/s10640-006-9033-z text/html Access to full text is restricted to subscribers. Anni Huhtala anni.huhtala@mtt.fi Eva Samakovlis
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article Family Behavior: Implications for Health Benefits Transfer from Adults to Children Benefit transfer, Children’s health, Altruism, Family behavior, 1 2009 43 5 Environmental and Resource Economics 31 43 http://hdl.handle.net/10.1007/s10640-008-9229-5 text/html Access to full text is restricted to subscribers. Mark Dickie mdickie@bus.ucf.edu Shelby Gerking sgerking@bus.ucf.edu
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article Allowing for Household Preferences in Emission Trading – A Contribution to the Climate Policy Debate In the context of emission trading it seems to be taken as given that people's preferences can be ignored with respect to the whole process of fixing emission targets and allocating emission permits to polluters. With this paper we want to reopen the debate on how citizens can be involved in this process. We try to show how citizen preferences can be included in the process of pollution control through emission trading. We propose an emission trading system where all emission permits are initially allocated to households who are then allowed to sell them in the permit market or to withhold (at least some of) them in order to reduce total pollution. This proposal tries to overcome the fundamental disadvantage of traditional permit systems which neglect consumer preferences by solely distributing emission permits to producers / polluters. In our system the property right to nature is re-allocated to the households who obtain the opportunity of reducing actual emissions according to their personal preferences by withholding a part or all of the emission permits allotted to them. Such a change in environmental policy would mark a return to the traditional principles of consumer sovereignty by involving households (at least partially) in the social abatement decision process instead of excluding them. Another advantage of admitting households to the TEP market as sellers or buyers of permits is that this increases the number of agents in the permit market and thus significantly reduces the possibilities of strategic market manipulations. Copyright Kluwer Academic Publishers 2002 environmental policy, tradable emission permits, climate policy, consumer sovereignty, 4 2002 21 4 Environmental and Resource Economics 317 342 http://hdl.handle.net/10.1023/A:1015120502007 text/html Access to full text is restricted to subscribers. Michael Ahlheim ahleheim@uni-hohenheim.de Friedrich Schneider
oai:RePEc:kap:enreec:v:5:y:1995:i:2:p:115-1292020-08-08RePEc:kap:enreec
article The U.S. allowance trading system for sulfur dioxide: An update on market experience In 1990, the U.S. Congress passed legislation that amended the Clean Air Act to create a new program to mitigate the effects of acid deposition in the U.S. through emission reductions of sulfur dioxide (SO 2 ) and nitrogen oxides (NO x ) at electric utility plants across the country. The SO 2 reductions, totalling a 40% reduction nationally from 1980 levels or a 10 million ton reduction annually, are achieved largely through an emission trading system, the largest program of its kind designed to date. This trading system has the potential to save up to half of the compliance costs associated with more traditional source-by-source emission limit programs. This paper briefly discusses background on the acid rain issue in the United States, and the principal features of the program, including: a permanent cap on utility emissions of SO 2 beginning in 2010, decision to grant up-front allocation of emission credits to reduce individual approvals of trades, the use of continuous emission monitors and automatic penalties to ensure compliance, and integration of the Acid Rain program requirements with other Clean Air Act programs. The paper also discusses the development of the allowance trading market to date, including the types of compliance options chosen and quantity and type of emissions trading being conducted. Copyright Kluwer Academic Publishers 1995 Emission trading, United States, sulfur dioxide, air pollution, costs, cost-effectiveness, 2 1995 5 3 Environmental & Resource Economics 115 129 http://hdl.handle.net/10.1007/BF00693019 text/html Access to full text is restricted to subscribers. Renee Rico
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article The UK-NEA Papers: Introduction 2 2014 57 2 Environmental and Resource Economics 169 174 http://hdl.handle.net/10.1007/s10640-013-9660-0 text/html Access to full text is restricted to subscribers. Partha Dasgupta partha.dasgupta@econ.cam.ac.uk
oai:RePEc:kap:enreec:v:43:y:2009:i:4:p:503-5172020-08-08RePEc:kap:enreec
article Comparing Tax and Tax Reallocation Payments in Financing Rail Noise Abatement Programmes: Results from a Stated Choice Valuation Study in Italy Choice experiment, Noise abatement, Payment tax vehicle, Tax reallocation vehicle, Formal testing, Welfare analysis, 4 2009 43 8 Environmental and Resource Economics 503 517 http://hdl.handle.net/10.1007/s10640-008-9243-7 text/html Access to full text is restricted to subscribers. Paulo Nunes pnunes@unive.it Chiara Travisi chiara.travisi@feem.it
oai:RePEc:kap:enreec:v:40:y:2008:i:1:p:53-722020-08-08RePEc:kap:enreec
article Intellectual Property Rights and Crop-Improving R&D under Adaptive Destruction Biological resistance, Intellectual property rights, Markov perfect equilibrium, Patents, Research exemption, R&D, Sequential innovation, L00, O31, O34, Q28, 1 2008 40 5 Environmental and Resource Economics 53 72 http://hdl.handle.net/10.1007/s10640-007-9140-5 text/html Access to full text is restricted to subscribers. Oleg Yerokhin GianCarlo Moschini moschini@iastate.edu
oai:RePEc:kap:enreec:v:64:y:2016:i:4:d:10.1007_s10640-015-9892-22020-08-08RePEc:kap:enreec
article Nutrient Standards, Water Quality Indicators, and Economic Benefits from Water Quality Regulations Abstract There is no consensus in the hedonic property pricing literature on measures of water quality to use for regulatory policy analysis. This study compares several alternative measures of water quality with a focus on singular and composite nutrient indicators. Our contribution is to compare and contrast these indicators in the context of benefit analysis based on recent regulatory programs for nutrients in the US and EU. Results indicate order of magnitude differences in the benefits derived from the different types of indicators. We find support for a compound indicator that combines three policy-relevant indicators into an overall measure of waterbody health and is significantly related to property values. Given the growing interest in objective criteria for regulating nutrients and other nonpoint source pollutants, these results provide guidance on the selection of indicators in property valuation studies of water quality regulations. Hedonic analysis, Benefit-cost analysis, Spatial econometrics, Water quality 4 2016 64 8 6 Environmental and Resource Economics 643 661 http://link.springer.com/10.1007/s10640-015-9892-2 text/html Abstract Patrick J. Walsh Walsh.Patrick@epa.gov US EPA J. Walter Milon wmilon@bus.ucf.edu University of Central Florida
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article Payments for Ecosystem Services Programs: Predicting Landowner Enrollment and Opportunity Cost Using a Beta-Binomial Model Beta-binomial, Biodiversity conservation, Incentives, Multivariate censored regression, Non-industrial private forests, Payments for ecosystem services, PES-programs, Stated preferences, Tobit, 3 2009 44 11 Environmental and Resource Economics 415 439 http://hdl.handle.net/10.1007/s10640-009-9293-5 text/html Access to full text is restricted to subscribers. David Layton dflayton@u.washington.edu Juha Siikamäki juha@rff.org
oai:RePEc:kap:enreec:v:38:y:2007:i:3:p:353-3722020-08-08RePEc:kap:enreec
article Automobile quality choice under pollution control regulation Automobile industry, Quality differentiation, CAFE, Self-selection, Fuel tax, ZEV, R40, 3 2007 38 11 Environmental and Resource Economics 353 372 http://hdl.handle.net/10.1007/s10640-006-9074-3 text/html Access to full text is restricted to subscribers. Ida Ferrara iferrara@yorku.ca
oai:RePEc:kap:enreec:v:59:y:2014:i:1:p:111-1352020-08-08RePEc:kap:enreec
article Environmental Regulations, Producer Responses, and Secondary Benefits: Carbon Dioxide Reductions Under the Acid Rain Program This paper derives a production analysis framework for modeling secondary benefits from environmental regulation, i.e. induced changes in yet unregulated pollutants. We emphasize the various ways in which the producers can respond to environmental regulations, and evaluate them in terms of their costs and their generation of secondary benefits. An application on the US electricity sector illustrates our main point: In our case, abatement technologies that reduce regulated emissions while leaving the plants’ unregulated emissions unchanged appear to be among the least costly producer responses to the existing sulfur and nitrogen regulations, but at the expense of limited secondary reductions in carbon dioxide emissions. This finding raises questions about the magnitude of the much debated secondary benefits from future regulations on carbon dioxide emissions, since similar abatement technologies are currently being developed for carbon dioxide. With new environmental issues emerging over time, our findings suggest that regulators should signal the possibilities of new regulations on connected pollutants to producers. Such information may be relevant for producers when choosing current abatement strategies—with minor cost increases to deal with today’s issues, overall compliance costs for near-future environmental problems may be lowered. Copyright Springer Science+Business Media Dordrecht 2014 Abatement costs, Data envelopment analysis, Environmental regulation, Materials balance, Multiple pollutants, Secondary benefits, 1 2014 59 9 Environmental and Resource Economics 111 135 http://hdl.handle.net/10.1007/s10640-013-9720-5 text/html Access to full text is restricted to subscribers. Kenneth Rødseth klr@toi.no Eirik Romstad eirik.romstad@umb.no
oai:RePEc:kap:enreec:v:45:y:2010:i:3:p:405-4282020-08-08RePEc:kap:enreec
article Effects of Unit-Based Garbage Pricing: A Differences-in-Differences Approach Unit-based pricing, Household waste, Recycling, Endogenous policy, Policy interaction, H31, Q53, 3 2010 45 3 Environmental and Resource Economics 405 428 http://hdl.handle.net/10.1007/s10640-009-9320-6 text/html Access to full text is restricted to subscribers. Maarten A. Allers m.a.allers@rug.nl Corine Hoeben
oai:RePEc:kap:enreec:v:55:y:2013:i:2:p:199-2152020-08-08RePEc:kap:enreec
article Endogenous Timing in Strategic Environmental Policymaking In this paper, we endogenize the timing of policymaking in a simple two-country model of strategic environmental policy. We consider a timing game in which two policymakers non-cooperatively decide their preferred sequence of moves before setting emission tax rates. We show that whether the policymakers implement emission tax policies simultaneously or sequentially crucially depends on the magnitude of environmental damages. When the damages are insignificant, the tax rates are strategic substitutes, and the simultaneous-move policymaking emerges in equilibrium. In contrast, when the damages are significant, the tax rates are strategic complements, and sequential-move policymaking emerges. We also extend the model by allowing for differences in the vulnerability to environmental damages between countries. When the differences are large, the unique equilibrium of the game is the situation where the less vulnerable country acts as a leader. In the case where multiple equilibrium emerges, the risk-dominant equilibrium is also that where the less vulnerable country leads. Copyright Springer Science+Business Media Dordrecht 2013 Strategic environmental policy, Endogenous timing, Environmental tax, Duopoly, Q56, Q28, L13, C72, 2 2013 55 6 Environmental and Resource Economics 199 215 http://hdl.handle.net/10.1007/s10640-012-9622-y text/html Access to full text is restricted to subscribers. Keisuke Hattori hattori@osaka-ue.ac.jp Takahiro Kitamura
oai:RePEc:kap:enreec:v:31:y:2005:i:2:p:229-2512020-08-08RePEc:kap:enreec
article Nonpoint Source Pollution Taxes and Excessive Tax Burden If a regulator is unable to measure firms’ individual emissions, an ambient tax can be used to achieve the socially desired level of pollution. With this tax, each firm pays a unit tax on aggregate emissions. In order for the tax to be effective, firms must recognize that their decisions affect aggregate emissions. When firms behave strategically with respect to the tax-setting regulator, under plausible circumstances their tax burden is lower under an ambient tax, relative to the tax which charges firms on the basis of individual emissions. Firms may prefer the case where the regulator is unable to observe individual firm emissions, even if this asymmetric information causes the regulator to tax each firm on the basis of aggregate emissions. Copyright Springer 2005 ambient tax, asymmetric information, differential games, moral hazard, nonpoint source pollution, D82, H20, H40, Q20, 2 2005 31 06 Environmental & Resource Economics 229 251 http://hdl.handle.net/10.1007/s10640-005-1772-8 text/html Access to full text is restricted to subscribers. Larry Karp karp@are.berkeley.edu
oai:RePEc:kap:enreec:v:53:y:2012:i:2:p:203-2282020-08-08RePEc:kap:enreec
article Large Scale Marine Protected Areas for Biodiversity Conservation Along a Linear Gradient: Cooperation, Strategic Behavior or Conservation Autarky? In this paper we investigate effects of overlap in species between ecosystems along a linear gradient on the location of marine protected areas (MPAs) under full cooperation, strategic behavior and conservation autarky. Compared to the full cooperation outcome, both strategic behavior and conservation autarky lead to under-investment in biodiversity protection. Under strategic behavior, however, we observe the additional problem of “location leakage” i.e. countries invest less in species protected by others. Conservation autarky eliminates location leakage; in ecosystems with partly overlapping species compositions at country borders it even induces MPAs that are too large from a global perspective. We also find that, in our setting of a linear gradient without migrating species, countries focus their conservation efforts on species unique to their own country and that these species are relatively well protected compared to common species. Copyright The Author(s) 2012 Bioeconomic modeling, Biodiversity conservation, Game theory, Marine protected areas, Marine reserves, Reserve site selection, Linear setting, 2 2012 53 10 Environmental and Resource Economics 203 228 http://hdl.handle.net/10.1007/s10640-012-9559-1 text/html Access to full text is restricted to subscribers. Maarten Punt m.j.punt@gmail.com Hans-Peter Weikard Ekko Ierland Jan Stel
oai:RePEc:kap:enreec:v:50:y:2011:i:2:p:267-2842020-08-08RePEc:kap:enreec
article Market Inertia and the Introduction of Green Products: Can Strategic Effects Justify the Porter Hypothesis? Porter hypothesis, Environmental regulation, Differentiated products, Coordination, L13, Q50, 2 2011 50 10 Environmental and Resource Economics 267 284 http://hdl.handle.net/10.1007/s10640-011-9471-0 text/html Access to full text is restricted to subscribers. Christos Constantatos Markus Herrmann markus.herrmann@ecn.ulaval.ca
oai:RePEc:kap:enreec:v:18:y:2001:i:4:p:411-4322020-08-08RePEc:kap:enreec
article The Role of Water in Manufacturing Water's role in manufacturing technologies has received limited attention. A KLEM model of the sector's technology is extended to include two facets of water use: intake and recirculation. Three annual cross-sectional surveys on plant-level water use are pooled and combined with census data to estimate this extended model for the Canadian manufacturing sector over the period 1981–1991. While Canada's water allocation regulations influence private water withdrawals, statistical tests support representing water intake as a variable input. Water intake is found to be a substitute for water recirculation, energy, labour and capital. The relationship between water intake and recirculation is stronger when water intake is process-related rather than related to cooling and steam production. Technological change has been biased in the direction of increased water intake and decreased water recirculation. Copyright Kluwer Academic Publishers 2001 cost function, demand, manufacturing, recirculation, water, 4 2001 18 4 Environmental and Resource Economics 411 432 http://hdl.handle.net/10.1023/A:1011117319932 text/html Access to full text is restricted to subscribers. Diane Dupont ddupont@spartan.ac.brocku.ca Steven Renzetti
oai:RePEc:kap:enreec:v:59:y:2014:i:3:p:479-5022020-08-08RePEc:kap:enreec
article Performance of the Ambient Tax: Does the Nature of the Damage Matter? The ambient tax is often considered as an efficient instrument to achieve a first best outcome of ambient pollution when the regulator cannot observe individual emissions, or when monitoring costs are prohibitive. While this view is supported to a large extent by experimental findings, there remains several hurdles that hinder the implementation of the ambient tax in the field. One of these hurdles is the nature of the damage. Experimental findings suggest that the efficiency of the ambient tax is higher under external damage, i.e. if ambient pollution affects non-polluters (Spraggon in J Public Econ 84:427–456, 2002 ) than under internal damage, i.e. if ambient pollution affects polluters themselves (Cochard et al. in Environ Resour Econ 30:393–422, 2005 ). But this result rests on very different experimental settings. Therefore, we designed a new experiment that allows to compare external and internal damage within a common setting. Our main finding is that the ambient tax is equally efficient under internal and external damage. Copyright Springer Science+Business Media Dordrecht 2014 Ambient tax, Efficiency, Endogenous externality , Exogenous externality, Experimental economics, Non-point source pollution, 3 2014 59 11 Environmental and Resource Economics 479 502 http://hdl.handle.net/10.1007/s10640-013-9743-y text/html Access to full text is restricted to subscribers. Marc Willinger willinger@lameta.univ-montp1.fr Nasreddine Ammar nasreddine.ammar.1@ulaval.ca Ahmed Ennasri ennasri@lameta.univ-montp1.fr
oai:RePEc:kap:enreec:v:58:y:2014:i:2:p:219-2442020-08-08RePEc:kap:enreec
article Comparing Regulations to Protect the Commons: An Experimental Investigation In a laboratory experiment we test three regulations imposed on a common-pool resource game with heterogeneous users: an access fee and subsidy scheme, transferable quotas and non-transferable quotas. We calibrate the game so that all regulations improve users’ profits compared to free-access extraction. We compare the regulations according to five criteria: resource preservation, individual profits, profit difference, Pareto-improvement from free-access and sorting of the most efficient users. One of the main findings is that, even though it performs better in sorting out the most efficient subjects, the fee and subsidy scheme is not more profitable than tradable quotas. Copyright Springer Science+Business Media Dordrecht 2014 Common-pool resource, Regulation, Quota, Permit, Tax, C91, Q28, Q38, Q58, 2 2014 58 6 Environmental and Resource Economics 219 244 http://hdl.handle.net/10.1007/s10640-013-9700-9 text/html Access to full text is restricted to subscribers. Stefan Ambec sambec@toulouse.inra.fr Alexis Garapin alexis.garapin@upmf-grenoble.fr Laurent Muller laurent.muller@grenoble.inra.fr Arnaud Reynaud areynaud@toulouse.inra.fr Carine Sebi carine.sebi@enerdata.net
oai:RePEc:kap:enreec:v:2:y:1992:i:4:p:399-4142020-08-08RePEc:kap:enreec
article Pricing and regulating affect environmental ethics Effluent charges and tradeable permits are economically efficient but rarely used. A new explanation for this discrepancy is offered. Pricing may crowd out environmental ethics in the pricing, and via spillovers, also in non-pricing sectors. Pricing may therefore increase pollution, providing a reason why decision-makers tend to reject environmental pricing. Five propositions showing the conditions for counterproductive effects are advanced. They are consistent with available empirical evidence. Regulation by setting standards and subsidies damage environmental ethics less than pricing, because pollution is condoned. Damaging environmental ethics may prevent political action in favor of the environment. Copyright Kluwer Academic Publishers 1992 Effluent charges, environmental regulations, intrinsic motivation, ethics, 4 1992 2 7 Environmental & Resource Economics 399 414 http://hdl.handle.net/10.1007/BF00304969 text/html Access to full text is restricted to subscribers. Bruno Frey
oai:RePEc:kap:enreec:v:50:y:2011:i:1:p:131-1552020-08-08RePEc:kap:enreec
article Does Disclosure Reduce Pollution? Evidence from India’s Green Rating Project Public disclosure, Pollution control, India, Pulp and paper, Q53, Q56, Q58, 1 2011 50 9 Environmental and Resource Economics 131 155 http://hdl.handle.net/10.1007/s10640-011-9465-y text/html Access to full text is restricted to subscribers. Nicholas Powers Nichlolas.Powers@brattle.com Allen Blackman Thomas Lyon Urvashi Narain
oai:RePEc:kap:enreec:v:46:y:2010:i:3:p:275-2802020-08-08RePEc:kap:enreec
article Emission Taxes and Optimal Refunding Schemes with Endogenous Market Structure Emission tax, Entry-license tax, First-best outcome, Free entry, Government’s budget constraint, Refunds, H42, L13, 3 2010 46 7 Environmental and Resource Economics 275 280 http://hdl.handle.net/10.1007/s10640-009-9340-2 text/html Access to full text is restricted to subscribers. Susumu Cato susumu.cato@gmail.com
oai:RePEc:kap:enreec:v:61:y:2015:i:4:p:595-6142020-08-08RePEc:kap:enreec
article Dynamic and Static Behaviour with Respect to Energy Use and Investment of Dutch Greenhouse Firms Dutch greenhouse horticulture firms are energy-intensive and major emitters of greenhouse gases. This paper develops a theoretically consistent model that is able to describe the greenhouse firms’ behaviour regarding energy use and investments in energy technology. The behaviour of the firm is modelled using a combination of a dynamic cost function and a static profit function framework. The optimal quantity of energy is derived from the link between these two functions. The model is applied to a panel of 97 Dutch greenhouse firms over the period 2001–2008. The results show that most Dutch greenhouse firms shift from being net electricity users to net electricity producers in the long term. Investing in energy capital contributes to reducing net energy use, however it increases the quantity of carbon dioxide emissions due to an increase in electricity production. A 1 % increase of the price of gas reduces carbon dioxide emissions by 1.6 %. Copyright Springer Science+Business Media Dordrecht 2015 Adjustment costs, Dynamic duality, Energy, Greenhouse horticulture, Short-term marginal cost, 4 2015 61 8 Environmental and Resource Economics 595 614 http://hdl.handle.net/10.1007/s10640-014-9808-6 text/html Access to full text is restricted to subscribers. D. Verreth d.verreth@gmail.com G. Emvalomatis g.emvalomatis@dundee.ac.uk F. Bunte f.bunte@fontys.nl A. Oude Lansink Alfons.oudelansink@wur.nl
oai:RePEc:kap:enreec:v:61:y:2015:i:1:p:115-1252020-08-08RePEc:kap:enreec
article The Endogeneity Problem in Applied Fisheries Econometrics: A Critical Review The purpose of this essay is to bring attention to some serious problems that exist in econometric application of fisheries economic models. These problems in application are serious to the point of impeding our ability to do policy work. This essay will focus on two areas of econometric application; first, the violation of the fundamental exogeneity condition for applied econometrics $$E(\varepsilon |X)=0$$ E ( ε | X ) = 0 , where $$\varepsilon $$ ε is a stochastic error term and $$X$$ X is a matrix of right-hand-side explanatory variables, and second, the inappropriate use of data that is available for analysis. Both problems deal with the econometric issues of omitted and proxy variables. I will also comment on data necessary to carry out proper fisheries econometric research and policy analysis. Simulation techniques based on a known population regression equation are used to illustrate the extent of the empirical problems. Injecting real data into the simulations shows the bias that we can bring forward to the policy arena. Copyright Springer Science+Business Media Dordrecht 2015 Fisheries economics, Omitted variables, Proxy variables, C1, Q22, 1 2015 61 5 Environmental and Resource Economics 115 125 http://hdl.handle.net/10.1007/s10640-013-9740-1 text/html Access to full text is restricted to subscribers. Daniel Gordon dgordon@ucalgary.ca
oai:RePEc:kap:enreec:v:36:y:2007:i:3:p:367-3882020-08-08RePEc:kap:enreec
article The Optimal Distribution of Pollution Rights in the Presence of Political Distortions A critical issue in designing a system of tradable emission permits concerns the distribution of the initial pollution rights. The purpose of this paper is to investigate how the initial rights should be optimally set, when the determination of the number of tradable permits is subject to the influence of interest groups. According to the Coase theorem, in the case where there are low transaction costs, the assignment of the initial rights does not affect the efficiency of the final resource allocation. In the presence of political pressure, we show that the distribution of the initial rights has a significant effect on social welfare. In contrast to the conventional results, we find that grandfathered permits may be more efficient than auctioned permits, even after taking into consideration the revenue-recycling effect. Copyright Springer Science+Business Media, Inc. 2007 auction, grandfathering, interest groups, revenue-recycling effect, tradable emission permits, D72, Q38, H77, 3 2007 36 3 Environmental and Resource Economics 367 388 http://hdl.handle.net/10.1007/s10640-006-9020-4 text/html Access to full text is restricted to subscribers. Yu-Bong Lai yblai@mail.ntpu.edu.tw
oai:RePEc:kap:enreec:v:26:y:2003:i:2:p:211-2262020-08-08RePEc:kap:enreec
article Differential Provision of Solid Waste Collection Services in the Presence of Heterogeneous Households A model of household refuse production is presented in which individuals differ in their distaste for the waste stock and the supply of waste collection services is continuous in pick-up frequency. The inclusion of pick-up frequency into household solid waste management analyses has already been shown to have policy implications. In fact, even in the absence of the waste stock externality, a system of uniform consumption taxes and legal (or curbside) disposal and recycling subsidies has been found to be necessary (and sufficient) to induce households to socially optimally allocate their resources when illegal disposal (or simply dumping) incentives exist but a per unit punishment system for dumping is lacking. This policy is here concluded to be no longer feasible; instead, a system of differential consumption taxes and recycling subsidies and uniform legal disposal subsidies is found to be optimal (but possibly nonimplementable). In the presence of heterogeneous households, which are however identifiable on the basis of their relative location to the landfill site, an optimal and implementable policy is then shown to require a differential provision of collection services. Copyright Kluwer Academic Publishers 2003 garbage collection frequency, illegal disposal, recycling, taxation, user fees, 2 2003 26 10 Environmental and Resource Economics 211 226 http://hdl.handle.net/10.1023/A:1026354615511 text/html Access to full text is restricted to subscribers. Ida Ferrara
oai:RePEc:kap:enreec:v:37:y:2007:i:4:p:713-7322020-08-08RePEc:kap:enreec
article Alternative targets and economic efficiency of selecting protected areas for biodiversity conservation in boreal forest We examine the relative merits of alternative forest biodiversity targets, which give different weights to species according to their conservation status and abundance. A site selection framework is used for choosing the habitat-protection strategy that maximizes biodiversity subject to an upper bound on funding with six alternative conservation goals. By using Finnish data on old-growth forests, we found that alternative conservation goals yield different benefit-cost tradeoffs. Goals relying on complementarity between protected stands result in great marginal costs at a high conservation level. Therefore, under these conditions it may not be economically efficient to establish a large conservation network to protect all species in a given area. In contrast, a large conservation network is more likely to be justified when the habitat-protection strategy focuses on species abundance. The trade-offs between alternative objectives are explicitly measured by incrementally varying the weights given to the species. We found that the targets for all species representation and species abundance can largely be met simultaneously. Protecting red-listed species reduces overall species coverage and species abundance particularly at low budget levels. Copyright Springer Science+Business Media, Inc. 2007 Biodiversity, Forest conservation, Forest management, Reserve site selection, Species representation, Q20, Q23, Q57, 4 2007 37 8 Environmental and Resource Economics 713 732 http://hdl.handle.net/10.1007/s10640-006-9064-5 text/html Access to full text is restricted to subscribers. Artti Juutinen artti.juutinen@oulu.fi Mikko Mönkkönen mikko.monkkonen@bytl.jyu.fi
oai:RePEc:kap:enreec:v:37:y:2007:i:1:p:233-2522020-08-08RePEc:kap:enreec
article Harvesting in an integrated general equilibrium model Harvesting of prey biomass is analyzed in an integrated ecological-economic system whose submodels, a predator–prey ecosystem and a simple economy, are microfounded dynamic general equilibrium models. These submodels are interdependent because the ecosystem responds to harvesting—through the reactions of optimizing individual organisms—by changing the provision of public ecosystem services to consumers. General analytical results are derived regarding the impact of harvesting policies on short-run equilibria of both submodels, on population dynamics, and on stationary states of the integrated model. A key insight is that prey biomass carries a positive ecosystem price which needs to be added as a tax mark-up to the economic price of harvested biomass to attain allocative efficiency. Further information on the dynamics is gained by resorting to numerical analysis of the policy regimes of zero harvesting, laissez-faire harvesting and efficient harvesting. It “... is a matter of weighing costs and benefits of taking action, whether the action is the “inert” one of leaving resources alone in order to conserve them, or whether it involves exploiting a resource ... for so-called material ends”. Pearce (1976, p. 320) Copyright Springer Science+Business Media, Inc. 2007 Predator, Prey, Biomass price, Harvesting, Q20, Q57, 1 2007 37 5 Environmental and Resource Economics 233 252 http://hdl.handle.net/10.1007/s10640-007-9122-7 text/html Access to full text is restricted to subscribers. Thomas Eichner eichner@vwl.wiwi.uni-siegen.de Rüdiger Pethig pethig@vwl.wiwi.uni-siegen.de
oai:RePEc:kap:enreec:v:25:y:2003:i:2:p:233-2542020-08-08RePEc:kap:enreec
article Anticipated Environmental Policy and Transitional Dynamics in an Endogenous Growth Model This paper makes a new attempt toinvestigate how an anticipatedenvironmental policy governs the transitionaldynamics of an economy when pollutionexternality is taken into account. Themodeling strategy we use is an AK technologyendogenous growth framework with an endogenousleisure-labor choice. It is found that, unlikeinelastic labor supply framework, a rise inpublic abatement expenditure will stimulate thebalanced economic growth rate. It is alsofound that public abatement technology plays animportant role in determining the transitionaladjustment of the economic growth rate inresponse to a pre-announced environmentalpolicy. Copyright Kluwer Academic Publishers 2003 endogenous growth, elastic labor supply, pollution, public abatement, 2 2003 25 6 Environmental and Resource Economics 233 254 http://hdl.handle.net/10.1023/A:1023976428714 text/html Access to full text is restricted to subscribers. Jhy-hwa Chen Ching-chong Lai ccLai@ssp.sinica.edu.tw Jhy-yuan Shieh
oai:RePEc:kap:enreec:v:10:y:1997:i:3:p:223-2472020-08-08RePEc:kap:enreec
article Marine Debris, Beach Quality, and Non-Market Values This paper reports the first attempt to measure the importance of controlling marine debris as an aesthetic characteristic of beaches and coastal area. The results are based on a contingent valuation survey designed to estimate the economic value people would place on controlling marine debris on recreational beaches in New Jersey and North Carolina. A Weibull survival model was estimated treating for and against votes as defining censoring points for an unknown willingness to pay distribution. The findings suggest: (1) people do distinguish situations with differing amounts of debris when they are described using color photographs; (2) the pilot survey implies measures of people's willingness to pay (WTP) for debris control are consistent with a scope test in that larger WTP is associated with programs intended to address situations for more serious background levels of debris; and (3) local beach conditions seem to influence how people interpreted the plans describing beach conditions without the proposed control programs. Copyright Kluwer Academic Publishers 1997 marine debris, contingent valuation, scope test, 3 1997 10 10 Environmental and Resource Economics 223 247 http://hdl.handle.net/10.1023/A:1026465413899 text/html Access to full text is restricted to subscribers. V. Smith Xiaolong Zhang Raymond Palmquist
oai:RePEc:kap:enreec:v:50:y:2011:i:1:p:27-472020-08-08RePEc:kap:enreec
article A Spatial Microsimulation Approach to Estimating the Total Number and Economic Value of Site Visits in Travel Cost Modelling Total visits, Total economic value, Forest recreation, Spatial microsimulation, GIS-based network analysis, Travel cost model, 1 2011 50 9 Environmental and Resource Economics 27 47 http://hdl.handle.net/10.1007/s10640-011-9458-x text/html Access to full text is restricted to subscribers. John Cullinan john.cullinan@nuigalway.ie
oai:RePEc:kap:enreec:v:21:y:2002:i:3:p:203-2202020-08-08RePEc:kap:enreec
article An Integrated System for Management and Policy Analysis This paper develops an analytical framework to simulate management- and policy-driven environmental changes in Swedish mountain environments. The framework is based on a dynamic model that includes economic connections between timber and reindeer. Economic benefits are obtained in the timber sector and the reindeer sector, by harvesting forest and reindeer stocks and selling the harvests in markets. Unharvested forest and reindeer stocks provide benefits outside of markets. Reindeer stocks provide benefits by supporting the reindeer husbandry lifestyle for members of the indigenous Saami population. The paper analyzes decisions made by a hypothetical planner of a geographical area corresponding to a Swedish sameby (Saami village). Decision outcomes are measured using the present value of net benefits measured in economic terms, and are obtained both inside and outside of economic markets. The final section gives examples of management and policy decisions that might be simulated for Swedish mountain environments, such as market-based policies to increase the economic welfare derived from private timber and reindeer harvests. Copyright Kluwer Academic Publishers 2002 externalities, forestry, reindeer husbandry, Saami, Sweden, welfare economics, 3 2002 21 3 Environmental and Resource Economics 203 220 http://hdl.handle.net/10.1023/A:1014591415500 text/html Access to full text is restricted to subscribers. Peter Parks Göran Bostedt goran.bostedt@sekon.slu.se Bengt Kriström
oai:RePEc:kap:enreec:v:17:y:2000:i:2:p:183-1932020-08-08RePEc:kap:enreec
article Revenue Neutral Deposit/Refund Systems Deposit/refund systems are desirable instruments forenvironmental regulation where monitoring of emissions is difficult. Such systems may gain additional politicalacceptability, however, if implemented so that no net revenues accrue to the government. The revenue neutralityconstraint causes the deposit to drop below the efficient level, and the refund to rise. The extent to which thisconstraint leads to efficiency losses varies with the price elasticity of demand, with compliance costs, with thedegree of correlation between willingness to pay and compliance costs, and with the magnitude of theexternalities. Copyright Kluwer Academic Publishers 2000 deposit refund system, externalities, environmental regulation, policy instruments, 2 2000 17 10 Environmental and Resource Economics 183 193 http://hdl.handle.net/10.1023/A:1008338622801 text/html Access to full text is restricted to subscribers. Janusz Mrozek jrm@crai.com
oai:RePEc:kap:enreec:v:15:y:2000:i:2:p:179-1972020-08-08RePEc:kap:enreec
article Economic Impacts of the 1997 EU Energy Tax: Simulations with Three EU-Wide Models In March 1997 the European Commission adopted aproposal that increases existing minimum levels oftaxation on mineral oils by around 10 to 25% andintroduces excises for other energy products. Thispaper analyses the macroeconomic impacts of theproposal. It employs three models: HERMES, GEM-E3, andE3ME. All models confirm that the proposal will havepositive macroeconomic impacts when the tax revenuesare used to reduce social security contributions paidby employers. For the EU as a whole, both GDP andemployment are expected to be higher and CO 2 emissions are 0.9 to 1.6 percent lower. The positiveEU-wide effects can be observed in practically allmember states. The sector impacts are modest, with theenergy sector expected to face the most negativeimpacts. Differences between model results are due tothe model type (general equilibrium ormacro-econometric), the EU countries covered and theway tax exemptions were handled. Crucial assumptionsto obtain the ``double dividend'' are the modelling ofthe labour market and the impacts on EU externaltrade. The sensitivity of the results for the use oftax revenues, tax exemptions and tax rate increases isassessed. Copyright Kluwer Academic Publishers 2000 carbon dioxide, double dividend, employment, energy tax, EU, environmental policy, 2 2000 15 2 Environmental and Resource Economics 179 197 http://hdl.handle.net/10.1023/A:1008309512349 text/html Access to full text is restricted to subscribers. Heinz Jansen Ger Klaassen klaassen@iiasa.ac.at
oai:RePEc:kap:enreec:v:43:y:2009:i:3:p:433-4562020-08-08RePEc:kap:enreec
article Will Markets Direct Investments Under the Kyoto Protocol? Lessons from the Activities Implemented Jointly Pilots Greenhouse gas, Joint implementation, Kyoto Protocol, Count model, Selection model, C34, D72, F35, F37, P16, Q58, 3 2009 43 7 Environmental and Resource Economics 433 456 http://hdl.handle.net/10.1007/s10640-009-9272-x text/html Access to full text is restricted to subscribers. Donald Larson Dlarson@worldbank.org Gunnar Breustedt GBreustedt@agric-econ.uni-kiel.de
oai:RePEc:kap:enreec:v:49:y:2011:i:2:p:217-2412020-08-08RePEc:kap:enreec
article Distorted Time Preferences and Time-to-Build in the Transition to a Low-Carbon Energy Industry Discounting, Distorted time preferences, Energy industry, Environmental and technology policy, Technological transition, Time-to-build, Q48, H23, H43, 2 2011 49 6 Environmental and Resource Economics 217 241 http://hdl.handle.net/10.1007/s10640-010-9431-0 text/html Access to full text is restricted to subscribers. Christoph Heinzel ch.heinzel@gmail.com Ralph Winkler mail@ralph-winkler.de
oai:RePEc:kap:enreec:v:50:y:2011:i:3:p:325-3462020-08-08RePEc:kap:enreec
article Frontrunners and Laggards: The Strategy of Environmental Regulation under Uncertainty Environmental regulation, Voluntary action, Overcompliance, Game theory, 3 2011 50 11 Environmental and Resource Economics 325 346 http://hdl.handle.net/10.1007/s10640-011-9473-y text/html Access to full text is restricted to subscribers. Johannes Urpelainen ju2178@columbia.edu
oai:RePEc:kap:enreec:v:19:y:2001:i:4:p:403-4102020-08-08RePEc:kap:enreec
article Fishermen's Discount Rates in ITQ Systems In this paper the fishermen's planning and investment horizon is investigated using their discount rates. It is shown that one might calculate the implicit discount rate in an ITQ regulated fishery from the available information from the quota market. This gives information about how well the system is working. In particular, discount rates where ITQ systems are in operation initially were very high, before they started to decrease. This implies that it take some time to reap the full benefits of an ITQ system. It also gives arguments for not letting ITQs be perpetual property rights, and hence, enables more flexibility in the management system. Copyright Kluwer Academic Publishers 2001 fisheries management, ITQ, 4 2001 19 8 Environmental and Resource Economics 403 410 http://hdl.handle.net/10.1023/A:1011631714874 text/html Access to full text is restricted to subscribers. Frank Asche frank.asche@snf.no
oai:RePEc:kap:enreec:v:63:y:2016:i:3:p:613-6422020-08-08RePEc:kap:enreec
article Hedonic Valuation with Translating Amenities: Mountain Pine Beetles and Host Trees in the Colorado Front Range In hedonic valuation studies the policy-relevant environmental quality attribute of interest is often costly to measure, especially under pronounced spatial and temporal variability. However, in many cases this attribute affects home prices and consumer preferences solely through its impact on a readily observable, spatially delineated, and time-invariant feature of the physical landscape. We label such a feature a “translating amenity.” We show that under certain conditions changes in the marginal effect of such amenities on home values over time can be used to draw inference on the implicit price of the unobserved environmental quality of interest. We illustrate this approach in the context of a repeat-sales model and the recently intensified outbreak of the Mountain Pine Beetle in the Colorado Front Range. Copyright Springer Science+Business Media Dordrecht 2016 Forest pests, Property values, Repeat-sales model , Wildland–urban interface, 3 2016 63 3 Environmental and Resource Economics 613 642 http://hdl.handle.net/10.1007/s10640-014-9856-y text/html Access to full text is restricted to subscribers. Jed Cohen jedcohen@vt.edu Christine Blinn cblinn@vt.edu Kevin Boyle kjboyle@vt.edu Thomas Holmes tholmes@fs.fed.us Klaus Moeltner moeltner@vt.edu
oai:RePEc:kap:enreec:v:55:y:2013:i:2:p:175-1972020-08-08RePEc:kap:enreec
article The Welfare Effects of Allowance Banking in Emissions Trading Programs Permitting allowance banking in emissions trading programs can reduce expected compliance costs by giving capped firms flexibility to adjust the time path of abatement and to hedge against future uncertainty. Recent literature suggests that this compliance cost dividend is significant (Fell and Morgenstern Environ Resour Econ 47:275–297, 2010 ). Allowance banking may yield an environmental dividend (a) if the growth rate of marginal damages from emissions is less than the discount rate and (b) if emissions are lower in the short run as firms bank permits for use in later periods. A discrete, stochastic dynamic programming model is considered to simulate the two dividends of allowance banking in the context of the most recent Federal United States greenhouse gas cap-and-trade legislation. Simulation results show that under a range of parameter values, the environmental dividend has the same order of magnitude as the compliance cost dividend. Under the central set of parameters, allowance banking increases expected present value of benefits by about $$350$$ million dollars per year of the program. The environmental dividend, however, is completely eliminated if capped firms can borrow permits from future periods without limit. Copyright Springer Science+Business Media Dordrecht 2013 Allowance banking, Cap and trade, Social cost of carbon, 2 2013 55 6 Environmental and Resource Economics 175 197 http://hdl.handle.net/10.1007/s10640-012-9621-z text/html Access to full text is restricted to subscribers. Benjamin Leard BPL47@cornell.edu
oai:RePEc:kap:enreec:v:58:y:2014:i:4:p:605-6262020-08-08RePEc:kap:enreec
article Optimal NGO Financing of a Resource Management Certification Scheme The development of voluntary certification schemes in areas as diverse as fish, coffee and forestry offer the promise of environmental improvements without the requirement of governmental regulation and intervention. In many cases, however, the costs to landholders of making the transition are too large for them to do so. At the same time, the large intermediaries appear to have little economic incentive to introduce certification because the market does not adequately value the environmental benefits. Instead, NGOs and other aid and development agencies who would like to see small producers benefit from the change in production practices have typically stepped in to provide financial support for certification. This paper shows how voluntary price discrimination (in the form of donations) by the consumers that most highly value certification can be used to finance a switch to environmentally sustainable practices and thus address a market failure. This analysis shows that an NGO’s optimal intervention depends on the size of its budget, the elasticity of supply of the product, and the elasticity of participation by producers. NGOs with smaller budgets rely more heavily on lump sum transfers to the intermediary and less heavily on volume and participation-dependent subsidies. Volume and participation dependent subsidies are inversely related to the elasticity of supply and the elasticity of participation in a standard Lerner relationship. Copyright Springer Science+Business Media Dordrecht 2014 Certification, NGO, Smallholder, Sustainable production, H2, O2, Q2, 4 2014 58 8 Environmental and Resource Economics 605 626 http://hdl.handle.net/10.1007/s10640-013-9712-5 text/html Access to full text is restricted to subscribers. Murray Fulton Murrray.Fulton@usask.ca James Vercammen james.vercammen@ubc.ca
oai:RePEc:kap:enreec:v:42:y:2009:i:2:p:247-2642020-08-08RePEc:kap:enreec
article Convergent Validity of Attribute-Based, Choice Questions in Stated-Preference Studies Non-market valuation, Stated prederences, Attribute-based valuation, Choice experiments, Convergent validity, Monetary incentive, Incentive compatibility, Status-quo option, Famland protection, 2 2009 42 2 Environmental and Resource Economics 247 264 http://hdl.handle.net/10.1007/s10640-008-9233-9 text/html Access to full text is restricted to subscribers. Kevin Boyle kjboyle@vt.edu Semra Özdemir
oai:RePEc:kap:enreec:v:39:y:2008:i:2:p:83-902020-08-08RePEc:kap:enreec
article Calculating, With Income Effects, the Compensating Variation for a State Change Compensating variation, Epsilon draw, Equivalent variation, Random components, State change, State independence, 2 2008 39 2 Environmental and Resource Economics 83 90 http://hdl.handle.net/10.1007/s10640-007-9093-8 text/html Access to full text is restricted to subscribers. Edward Morey Edward.Morey@Colorado.edu Kathleen Rossmann KRossmann@BSC.edu
oai:RePEc:kap:enreec:v:55:y:2013:i:4:p:525-5412020-08-08RePEc:kap:enreec
article Population–Environment Interactions: European Migration, Population Composition and Climate Change The paper addresses the collision of two twenty-first Century transitions—the unprecedented change in the size, composition, density and distribution of the human population, and rapid change in the earth’s natural environment, in part a response to the above. It argues that it is important to consider these aspects of population change and environment together in order to understand the reality of any mitigation that may be made. Following a review of research which is beginning to address not only the environmental impact of population growth, but also of changes in density, distribution and composition, the paper turns to explore the interaction of population composition and density with environmental change through addressing interactions between migration, ageing populations and climate change. It considers a key population question facing the EU, that of the demographic deficit, and addresses how the mitigating role of migration will be affected by future climate change. It thus considers whether migration is a valid policy approach in the context of Europe’s demographic deficit and the impact of climate change on this relationship. Copyright Springer Science+Business Media Dordrecht 2013 Migration, Population, Climate change, Ageing, 4 2013 55 8 Environmental and Resource Economics 525 541 http://hdl.handle.net/10.1007/s10640-013-9677-4 text/html Access to full text is restricted to subscribers. Sarah Harper sarah.harper@ageing.ox.ac.uk
oai:RePEc:kap:enreec:v:30:y:2005:i:3:p:313-3252020-08-08RePEc:kap:enreec
article A Meta-analysis of Hypothetical Bias in Stated Preference Valuation Individuals are widely believed to overstate their economic valuation of a good by a factor of two or three. This paper reports the results of a meta-analysis of hypothetical bias in 28 stated preference valuation studies that report monetary willingness-to-pay and used the same mechanism for eliciting both hypothetical and actual values. The papers generated 83 observations with a median ratio of hypothetical to actual value of only 1.35, and the distribution has severe positive skewness. We find that a choice-based elicitation mechanism is important in reducing bias. We provide some evidence that the use of student subjects may be a source of bias, but since this variable is highly correlated with group experimental settings, firm conclusions cannot be drawn. There is some weak evidence that bias increases when public goods are being valued, and that some calibration methods may be effective at reducing bias. However, results are quite sensitive to model specification, which will remain a problem until a comprehensive theory of hypothetical bias is developed. Copyright Springer 2005 contingent valuation, experiments, hypothetical bias, meta-analysis, stated preference, 3 2005 30 03 Environmental & Resource Economics 313 325 http://hdl.handle.net/10.1007/s10640-004-3332-z text/html Access to full text is restricted to subscribers. James Murphy murphy@resecon.umass.edu P. Allen Thomas Stevens Darryl Weatherhead
oai:RePEc:kap:enreec:v:11:y:1998:i:3:p:571-5852020-08-08RePEc:kap:enreec
article Research Issues in Nonpoint Pollution Control Research on nonpoint pollution control instruments has focused primarily on incentives applied either to production inputs that affect nonpoint pollution, or to ambient pollution concentrations. Both approaches may in theory yield an efficient solution. However, input-based incentives will generally have to be second-best to make implementation practical. Design issues include which inputs to monitor and the rates to apply to them. The limited research indicates that second-best, input-based incentives can be effective in adjusting input use in environmentally desirable ways. Alternatively, ambient-based incentives have theoretical appeal because efficient policy design appears to be less complex than for input-based incentives. These incentives have no track record nor close analogues that demonstrate potential effectiveness, however. Research on how households and firms might react in response to ambient-based incentives is needed before these instruments can be seriously considered. Copyright Kluwer Academic Publishers 1998 ambient taxes, input taxes, nonpoint pollution, second-best, 3 1998 11 4 Environmental and Resource Economics 571 585 http://hdl.handle.net/10.1023/A:1008276202889 text/html Access to full text is restricted to subscribers. James Shortle David Abler Richard Horan jshortle@psu.edu
oai:RePEc:kap:enreec:v:24:y:2003:i:2:p:103-1192020-08-08RePEc:kap:enreec
article A Procedure for Negotiating Pollution Reduction under Information Asymmetry. Surface Water Quality Case This paper considers an alternative approachto surface water quality management whensociety is faced with the need to reduce waterpollution in a region with a complicatedregulatory environment. The paper is focusedon a specific kind of negotiation betweenpolluters and an authority, leading toresolution of the problem when there is theinformation asymmetry between the authorityand the polluters, i.e., the true pollutionabatement costs are known to the pollutersonly. This paper reports a laboratory experimentalcase prepared at the Department ofEnvironmental Economics, the University ofEconomics in Prague. The comparison withtheoretical computed first-best results underconditions of full information is included.Political and economic aspects of thesuggested approach are also discussed. Copyright Kluwer Academic Publishers 2003 economic laboratory experiments, environmental policy, information asymmetry, negotiation, water quality, 2 2003 24 2 Environmental and Resource Economics 103 119 http://hdl.handle.net/10.1023/A:1022886831892 text/html Access to full text is restricted to subscribers. Petr Šauer sauer@vse.cz Antonín Dvořák Aleš Lisa Petr Fiala
oai:RePEc:kap:enreec:v:32:y:2005:i:3:p:317-3362020-08-08RePEc:kap:enreec
article Optimal Tax Policy under Environmental Quality Competition This paper studies the socially optimal emission and commodity tax policy when consumers are willing to pay a price-premium for environmentally friendlier variants of a commodity vertically differentiated in environmental quality. The first-best levels of quality can be obtained by a combination of a uniform ad valorem tax and an emission tax (or a subsidy for buying green products). The first-best emission tax is higher than the social valuation of the positive externality associated with average environmental quality. Regardless of environmentally conscious consumers, if only one instrument is available, the second-best emission tax is equal to the social valuation of the positive externality associated with average environmental quality. A uniform ad valorem tax increases welfare only if the social valuation of the positive externality associated with average environmental quality is low enough. Copyright Springer 2005 ad valorem taxes, emission taxes, environmental quality, imperfect competition, subsidies, vertical differentiation, D62, H21, L13, 3 2005 32 11 Environmental & Resource Economics 317 336 http://hdl.handle.net/10.1007/s10640-005-4680-z text/html Access to full text is restricted to subscribers. C. Lombardini-Riipinen chiara.lombardini-riipinen@helsinki.fi
oai:RePEc:kap:enreec:v:43:y:2009:i:2:p:183-2072020-08-08RePEc:kap:enreec
article Rule of Law and the Resource Curse: Abundance Versus Intensity Cross-country comparisons, Multiple imputation, Resource curse, Resource extraction, Resource stocks, Rule of law, 2 2009 43 6 Environmental and Resource Economics 183 207 http://hdl.handle.net/10.1007/s10640-008-9231-y text/html Access to full text is restricted to subscribers. Catherine Norman Norman@jhu.edu
oai:RePEc:kap:enreec:v:55:y:2013:i:3:p:447-4652020-08-08RePEc:kap:enreec
article The Conflict Between Conservation and Recreation When Visitors Dislike Crowding: A Theoretical and Empirical Analysis of the Spatial Distribution of Recreational Beach Users We investigate conflicts between wildlife conservation and recreational use that can occur at open-access sites when visitors dislike crowding. A theoretical model is proposed which determines the spatial distributions of visitors to a beach, given their willingness to walk to avoid crowding and the configuration of beach access points. This model is estimated for three sections of coastline in eastern England using data from aerial video photography. Visitor density is strongly and negatively correlated with distance from access points. Willingness to walk has a highly skewed population distribution. We discuss the implications of these findings for the management of conflicts between conservation and recreation at open-access sites. Copyright Springer Science+Business Media Dordrecht 2013 Conservation, Recreation, Visitors, Crowding, Beach, 3 2013 55 7 Environmental and Resource Economics 447 465 http://hdl.handle.net/10.1007/s10640-013-9634-2 text/html Access to full text is restricted to subscribers. Jamie Tratalos jamie_tratalos@hotmail.com Robert Sugden Ian Bateman Jennifer Gill Andy Jones David Showler William Sutherland Andrew Watkinson
oai:RePEc:kap:enreec:v:54:y:2013:i:2:p:293-3102020-08-08RePEc:kap:enreec
article Does the Optimal Size of a Fish Stock Increase with Environmental Uncertainties? We analyze the effect of environmental uncertainties on optimal fishery management in a bio-economic fishery model. Unlike most of the literature on resource economics, but in line with ecological models, we allow the different biological processes of survival and recruitment to be affected differently by environmental uncertainties. We show that the overall effect of uncertainty on the optimal size of a fish stock is ambiguous, depending on the prudence of the value function. For the case of a risk-neutral fishery manager, the overall effect depends on the relative magnitude of two opposing effects, the ‘convex-cost effect’ and the ‘gambling effect’. We apply the analysis to the Baltic cod and the North Sea herring fisheries, concluding that for risk neutral agents the net effect of environmental uncertainties on the optimal size of these fish stocks is negative, albeit small in absolute value. Under risk aversion, the effect on optimal stock size is positive for sufficiently high coefficients of constant relative risk aversion. Copyright Springer Science+Business Media Dordrecht 2013 Fishery economics, Environmental uncertainty, Constant escapement, Risk aversion, Prudence, Q22, Q57, 2 2013 54 2 Environmental and Resource Economics 293 310 http://hdl.handle.net/10.1007/s10640-012-9606-y text/html Access to full text is restricted to subscribers. Ute Kapaun kapaun@economics.uni-kiel.de Martin Quaas
oai:RePEc:kap:enreec:v:53:y:2012:i:1:p:61-712020-08-08RePEc:kap:enreec
article Generalized Progress of Abatement Technology: Incentives Under Environmental Liability Law This paper considers the incentives environmental liability creates to improve pollution abatement technology. Our analysis considers technical progress in end-of-pipe abatement and in the production technology used, thereby generalizing the approach taken by Endres et al. (Environ Resour Econ 36:341–366, 2007 ). We establish that this generalization has drastic repercussions on incentives under negligence liability, while the performance of strict liability is not compromised. Furthermore, it is demonstrated that the social desirability of investment in abatement or production technology (or both) decisively determines how ex-ante and ex-post regulation fare with respect to welfare maximization in the case of negligence liability. Copyright Springer Science+Business Media B.V. 2012 Emission abatement technology, Induced technical change, Environmental liability law, Generalized progress, H 23, K 13, Q 58, 1 2012 53 9 Environmental and Resource Economics 61 71 http://hdl.handle.net/10.1007/s10640-012-9547-5 text/html Access to full text is restricted to subscribers. Alfred Endres Alfred.Endres@Fernuni-Hagen.de Tim Friehe tim.friehe@uni-konstanz.de
oai:RePEc:kap:enreec:v:17:y:2000:i:3:p:299-3102020-08-08RePEc:kap:enreec
article On the Value of Life in Rich and Poor Countries and Distributional Weights Beyond Utilitarianism This paper discusses the use ofdistributional weights in CBA based on a generalBergson-Samuelson SWF. In particular it illustratessome consequences of applying a SWF characterized byconstant inequality aversion (which includes classicalutilitarianism as a special case), together with aconstant relative risk aversion utility function, whencalculating the damage costs of global warming. Itextends and clarifies earlier unintuitive results, andemphasizes that utility must be seen as fully cardinalin terms of levels in this context. In the specialcase of utilitarianism, on the other hand, it issufficient to be able to make interpersonalcomparisons of utility changes. Copyright Kluwer Academic Publishers 2000 cost-benefit analysis, distributional weights, global warming, utility transformations, welfare theory, 3 2000 17 11 Environmental and Resource Economics 299 310 http://hdl.handle.net/10.1023/A:1026428314806 text/html Access to full text is restricted to subscribers. Olof Johansson-Stenman olof.johansson@economics.gu.se
oai:RePEc:kap:enreec:v:3:y:1993:i:3:p:217-2202020-08-08RePEc:kap:enreec
article Introduction 3 1993 3 6 Environmental & Resource Economics 217 220 http://hdl.handle.net/10.1007/BF00313158 text/html Access to full text is restricted to subscribers. Willem Heijman Mordechai Shechter
oai:RePEc:kap:enreec:v:49:y:2011:i:3:p:445-4712020-08-08RePEc:kap:enreec
article The Dynamic Response of Housing Values to a Forest Invasive Disease: Evidence from a Sudden Oak Death Infestation Difference-in-differences, Spatial hedonic, Invasive diseases, Sudden oak death, 3 2011 49 7 Environmental and Resource Economics 445 471 http://hdl.handle.net/10.1007/s10640-010-9441-y text/html Access to full text is restricted to subscribers. Kent Kovacs kova0090@umn.edu Thomas Holmes tholmes@fs.fed.us Jeffrey Englin englin@cabnr.unr.edu Janice Alexander jalexander@ucdavis.edu
oai:RePEc:kap:enreec:v:40:y:2008:i:1:p:91-1082020-08-08RePEc:kap:enreec
article Household Use of Agricultural Chemicals for Soil-Pest Management and Own Labor for Yard Work Agricultural chemicals, Do-it-yourself application, Discrete-continuous choice model, Fertilizers, Hired application, Household model of consumption and production, Lawn and garden, Organic chemicals, Pesticides, Random utility model, Synthetic chemicals, Yard care, 1 2008 40 5 Environmental and Resource Economics 91 108 http://hdl.handle.net/10.1007/s10640-007-9142-3 text/html Access to full text is restricted to subscribers. Scott Templeton stemple@clemson.edu David Zilberman Seung Yoo Andrew Dabalen
oai:RePEc:kap:enreec:v:47:y:2010:i:4:p:477-4932020-08-08RePEc:kap:enreec
article Combining Discrete and Continuous Representations of Preference Heterogeneity: A Latent Class Approach Travel cost method, Recreation demand, Random parameter model, Latent class model, Forests, 4 2010 47 12 Environmental and Resource Economics 477 493 http://hdl.handle.net/10.1007/s10640-010-9389-y text/html Access to full text is restricted to subscribers. Angel Bujosa angel.bujosa@uib.es Antoni Riera Robert Hicks
oai:RePEc:kap:enreec:v:1:y:1991:i:2:p:129-1552020-08-08RePEc:kap:enreec
article A comparative study of environmental amenity valuations The paper reports on a comparative study of direct and indirect approaches to valuing environmental amenities (i.e., public goods), specifically, air quality in terms of its human health effects. The application of three indirect valuation methods (via market goods) is reported here: the health production method, a consumer preferences (for nonmarket goods) model, and the cost of illness method. The first and second methods are (economic) behavior-based approaches where willingness to pay for an environmental good is derived by exploiting relationships in consumption between the public good and market good(s). The third method is based on a physical relationship—a dose-response function—between the environmental good and health. The direct valuation approach encompassed three contingent valuation elicitation formats: open-ended, modified iterative bidding game, and referenda-style binary choice. The application of all four methods was based on data from a survey of a large, stratified sample of households from the Haifa metropolitan area in northern Israel. The estimates of welfare change derived by the various methods are discussed and compared. Copyright Kluwer Academic Publishers 1991 Valuation methods, pollution abatement benefits, contingent valuation method, cost of illness method, health production function, translog utility function, 2 1991 1 6 Environmental & Resource Economics 129 155 http://hdl.handle.net/10.1007/BF00310015 text/html Access to full text is restricted to subscribers. Mordechai Shechter
oai:RePEc:kap:enreec:v:5:y:1995:i:4:p:375-3912020-08-08RePEc:kap:enreec
article Managing the international commons: Resource use and pollution control The simultaneous management, in an international context, of free-access renewable resources and transboundary pollution, is examined in a dynamic game framework. First-best outcomes under international cooperation are determined and compared to noncooperative outcomes when countries follow linear Markov strategies. An international policy consisting of taxes on emissions and harvesting, with international redistribution of tax receipts, is used to achieve the cooperative solution. In addition, side payments may be required to prevent free riding and thus make the international policy implementable. Copyright Kluwer Academic Publishers 1995 Transboundary pollution, open-access resource, differential game, Markov strategies, international taxes/reimbursements, free riding, 4 1995 5 6 Environmental & Resource Economics 375 391 http://hdl.handle.net/10.1007/BF00691575 text/html Access to full text is restricted to subscribers. Anastasios Xepapadeas
oai:RePEc:kap:enreec:v:11:y:1998:i:3:p:261-2712020-08-08RePEc:kap:enreec
article Economies, Human Capital, and Natural Assets Human capital concerns are used to structure links between the economy and the environment. Suggestions for empirical work to explore these structures are provided. Particular attention is devoted to connections between environmental hazards and influences upon parents’ decisions to invest in forming children's human capital. Copyright Kluwer Academic Publishers 1998 economy-environment linkages, human capital formation, 3 1998 11 4 Environmental and Resource Economics 261 271 http://hdl.handle.net/10.1023/A:1008243228388 text/html Access to full text is restricted to subscribers. Mark Agee Thomas Crocker* tcrocker@uwyo.edu
oai:RePEc:kap:enreec:v:54:y:2013:i:1:p:1-192020-08-08RePEc:kap:enreec
article Environmental Quality Competition and Taxation in the Presence of Green Network Effect Among Consumers We examine the impact of a “green network effect” in a market characterized by consumers’ environmental awareness and competition between firms in terms of both environmental quality and product prices. The unique aspect of this model comes from the assumption that an increase in the number of consumers of green (brown) product increases the satisfaction of each green (brown) consumer. We show that, paradoxically, when the network effect of a green product is higher than that of a brown product, this externality reduces product environmental quality and raises consumption of the green product. Conversely, when the network effect of the brown product is higher, the externality improves product environmental quality and raises consumption of the brown product. In both cases, the network effect does not affect the overall pollution level. The externality correction requires the use of three optimal fiscal policies: an ad valorem tax on products, an emission tax, and a subsidy or a tax on the green purchase. A second-best optimum can also be reached through the green taxation. Copyright Springer Science+Business Media B.V. 2013 Consumer behavior, Environmental quality, Network effect, Vertical differentiation, Taxation, 1 2013 54 1 Environmental and Resource Economics 1 19 http://hdl.handle.net/10.1007/s10640-012-9576-0 text/html Access to full text is restricted to subscribers. Dorothée Brécard dorothee.brecard@univ-nantes.fr
oai:RePEc:kap:enreec:v:9:y:1997:i:4:p:383-4082020-08-08RePEc:kap:enreec
article Environmental degradation and population movements: The role of property rights This study examines the linkages between environmental degradation (viewed primarily as deforestation and land degradation) and the movement of population from one region to another within a developing country. The hypothesis postulated is that the link between population and environmental degradation is mediated by the nature of property rights in land. This hypothesis is examined with the help of two alternative methodologies. Firstly, a simultaneous equations model using data for the arid and semi-arid region of Western India illustrates that outmigration from the region is largely the consequence of push factors such as environmental degradation and decrease in common land. Alternatively, micro experiments in environmental protection and the creation of common property rights on open access land in the same region indicate that the association between migrational change, creation of common property rights and participation indices is high. It can be concluded that once property rights are well defined with the help of appropriate institutional arrangements, labour moves towards the creation of common assets and an improvement in the environment takes place. Out migration is prevented and higher levels of population are supported by the same resources. Copyright Kluwer Academic Publishers 1997 common property regimes, population movements, outmigration, 4 1997 9 6 Environmental & Resource Economics 383 408 http://hdl.handle.net/10.1007/BF02441758 text/html Access to full text is restricted to subscribers. Kanchan Chopra S. Gulati
oai:RePEc:kap:enreec:v:18:y:2001:i:2:p:173-1922020-08-08RePEc:kap:enreec
article Spatial Heterogeneity and the Choice of Instruments to Control Nonpoint Pollution Because it is difficult to monitor emissions and to implement differentialtaxes and standards, uniform taxes and standards on agricultural chemicaluse are often proposed and used to control nonpoint-source pollution. Thisarticle analyzes the relative efficiency of these uniform instruments in thepresence of spatial heterogeneity. We show that the relative slopes of themarginal pollution cost and marginal profit of chemical use are only one ofthe factors that affect the relative efficiency. Other factors includecorrelation between marginal pollution costs and marginal profits and theslope and variability of marginal profits. In addition, a uniform tax mayresult in some farmers not using the chemical, and a uniform standard mayhave no effect on low-input land. We show empirically that the presence ofcorner solutions can reverse a conventional finding of tax or standardsuperiority based on the relative-slop rule. Copyright Kluwer Academic Publishers 2001 input-use taxes and standards, instrument choice, nonpoint-source pollution, spatial heterogeneity, 2 2001 18 2 Environmental and Resource Economics 173 192 http://hdl.handle.net/10.1023/A:1011164102052 text/html Access to full text is restricted to subscribers. JunJie Wu Bruce Babcock
oai:RePEc:kap:enreec:v:65:y:2016:i:3:d:10.1007_s10640-016-0043-12020-08-08RePEc:kap:enreec
article Potential Disasters can Turn the Tragedy into Success Abstract This paper presents a novel experimental design that allows testing how users of a common-pool resource respond to an endogenously driven drastic drop in the supply of the resource. We show that user groups will manage a resource more efficiently when confronted with such a non-concave resource growth function, compared to groups facing a logistic growth function. Even among cooperative groups there is a significant behavioral difference, although theory predicts there should not be. We argue that effectiveness of communication is endogenous to the problem; the threat of reaching a critical tipping point, beyond which the growth rate will drop drastically, triggers more effective communication within the group, enabling stronger commitment for cooperation and more knowledge sharing, which together explains the results. We argue that the insights generated by this study can be seen as one of many, but nevertheless important, contributions towards an increased understanding of the interactions between human behavior and the environment in common-pool resource systems. Common-pool resources, Laboratory experiments, User behavior, Renewable resources, Thresholds, Non-concave dynamics 3 2016 65 11 8 Environmental and Resource Economics 657 676 http://link.springer.com/10.1007/s10640-016-0043-1 text/html Abstract Therese Lindahl therese@beijer.kva.se The Royal Swedish Academy of Sciences Stockholm University Anne-Sophie Crépin The Royal Swedish Academy of Sciences Stockholm University Caroline Schill The Royal Swedish Academy of Sciences Stockholm University
oai:RePEc:kap:enreec:v:28:y:2004:i:3:p:301-3242020-08-08RePEc:kap:enreec
article Does Environmental Protection Lead to Slower Productivity Growth in the Chemical Industry? Efficiency and productivity growth is measured at the three-digit SIC level for six chemical industries for 1988–1993. The directional distance function is used to measure the lost chemical manufacturing output and the overproduction of toxic chemical releases. Total factor productivity growth is decomposed into a product of efficiency change and technical change. Accounting for toxic chemical releases, productivity grows at anannual rate of between 2.4% and 6.9%. We find no evidence that environmental protection measures reduce productivity growth. Copyright Kluwer Academic Publishers 2004 directional distance function, productivity growth, 3 2004 28 7 Environmental and Resource Economics 301 324 http://hdl.handle.net/10.1023/B:EARE.0000031056.93333.3a text/html Access to full text is restricted to subscribers. Bruce Domazlicky William Weber c645sse@semovm.semo.edu
oai:RePEc:kap:enreec:v:62:y:2015:i:4:p:837-8542020-08-08RePEc:kap:enreec
article Evolution of Reciprocity in Asymmetric International Environmental Negotiations We study the success of generalised trigger strategies in the evolution of cooperation in international environmental negotiations where the performance of these strategies is derived from asymmetric $$n$$ n -player prisoners’ dilemmas. Our results suggest that there exist regions in the relevant parameter space—i.e. costs and benefits, low and high tit-for-tat thresholds, probability of continued interaction—such that (partial) cooperation may emerge as long-run attractor of the evolutionary dynamics in these asymmetric social dilemmas. Copyright Springer Science+Business Media Dordrecht 2015 International environmental negotiations, Tit-for-tat, Replicator dynamics, Asymmetric prisoners’ dilemma, C72, C73, D62, H77, 4 2015 62 12 Environmental and Resource Economics 837 854 http://hdl.handle.net/10.1007/s10640-014-9841-5 text/html Access to full text is restricted to subscribers. Marius Ochea marius.ochea@u-cergy.fr Aart Zeeuw A.J.deZeeuw@uvt.nl
oai:RePEc:kap:enreec:v:23:y:2002:i:4:p:477-4802020-08-08RePEc:kap:enreec
article Gunther G. Schulze and Heinrich W. Ursprung (Ed), 2001, International Environmental Economics: A Survey of the Issues 4 2002 23 12 Environmental and Resource Economics 477 480 http://hdl.handle.net/10.1023/A:1021339927160 text/html Access to full text is restricted to subscribers. Christopher Gan Ganc1@lincoln.ac.nz
oai:RePEc:kap:enreec:v:42:y:2009:i:1:p:39-512020-08-08RePEc:kap:enreec
article Accounting for Ecosystems Dynamics of ecosystems, Ecosystem habitat service for fisheries, Ecosystem pollination service, Ecosystem services, Natural stocks accounting price, Resilience, Sustainable development, 1 2009 42 1 Environmental and Resource Economics 39 51 http://hdl.handle.net/10.1007/s10640-008-9234-8 text/html Access to full text is restricted to subscribers. Karl-Göran Mäler Sara Aniyar Sara@beijer.kva.se Åsa Jansson
oai:RePEc:kap:enreec:v:46:y:2010:i:2:p:217-2342020-08-08RePEc:kap:enreec
article Behavioral Economics and Benefit Cost Analysis Behavioral economics, Benefit cost analysis, 2 2010 46 6 Environmental and Resource Economics 217 234 http://hdl.handle.net/10.1007/s10640-010-9358-5 text/html Access to full text is restricted to subscribers. V. Smith Kerry.Smith@asu.edu Eric Moore
oai:RePEc:kap:enreec:v:7:y:1996:i:2:p:163-1922020-08-08RePEc:kap:enreec
article Development of a Fuzzy optimization model, supporting global warming decision-making An increasing number of models have been developed to support global warming response policies. The model constructors are facing a lot of uncertainties which limit the evidence of these models. The support of climate policy decision-making is only possible in a semi-quantitative way, as presented by aFuzzy model. The model design is based on an optimization approach, integrated in a bounded risk decision-making framework. Given some regional emission-related and impact-related restrictions, optimal emission paths can be calculated. The focus is not only on carbon dioxide but on other greenhouse gases too. In the paper, the components of the model will be described. Cost coefficients, emission boundaries and impact boundaries are represented asFuzzy parameters. TheFuzzy model will be transformed into a computational one by using an approach of Rommelfanger. In the second part, some problems of applying the model to computations will be discussed. This includes discussions on the data situation and the presentation, as well as interpretation of results of sensitivity analyses. The advantage of theFuzzy approach is that the requirements regarding data precision are not so strong. Hence, the effort for data acquisition can be reduced and computations can be started earlier. Copyright Kluwer Academic Publishers 1996 Decision-making, climate policy-making, global warming, cost-effectiveness analysis, modelling, fuzzy logic, risk aversion, 2 1996 7 3 Environmental & Resource Economics 163 192 http://hdl.handle.net/10.1007/BF00699290 text/html Access to full text is restricted to subscribers. Marian Leimbach
oai:RePEc:kap:enreec:v:10:y:1997:i:1:p:41-622020-08-08RePEc:kap:enreec
article Optimal Design of Forest Taxation with Multiple-Use Characteristics of Forest Stands The paper studies optimal forest taxation under uncertainty about future timber price when private forest owners value amenity services of forest stands and forest stands have public goods characteristics. It is assumed that preferences of forest owners can be described by a quasi-linear, intertemporal utility function which reflects risk aversion in terms of consumption and constant marginal utility in terms of amenity services. The comparative statics of current and future harvesting in terms of timber price risk, site productivity tax and yield tax are first developed. It is shown that, given the optimal site productivity tax, which is independent of the timber harvested and thus non-distortionary, it is desirable to introduce the yield tax at the margin; it both corrects externality due to the public goods characteristic of forest stands and serves as a social insurance device. The optimal yield tax is less than 100% and depends on the social value of forest stands, timber price risk and properties of compensated timber supply. In the general case the 'inverse elasticity rule’ – according to which the optimal yield tax is negatively related to the size of the substitution effects – may not hold. Under certainty, the desirability of the yield tax, given the optimal site productivity tax, depends only on the existence of public goods characteristic and is thus a pure Pigouvian tax. Copyright Kluwer Academic Publishers 1997 multiple-use forests, timber supply, optimal forest taxation, 1 1997 10 7 Environmental and Resource Economics 41 62 http://hdl.handle.net/10.1023/A:1026472622826 text/html Access to full text is restricted to subscribers. ERKKI Koskela erkki.koskela@helsinki.fi MARKKU Ollikainen
oai:RePEc:kap:enreec:v:41:y:2008:i:2:p:267-2872020-08-08RePEc:kap:enreec
article Over-Allocation or Abatement? A Preliminary Analysis of the EU ETS Based on the 2005–06 Emissions Data Climate policy, European Union Emissions Trading Scheme, Data analysis, C81, H41, O13, Q54, Q58, 2 2008 41 10 Environmental and Resource Economics 267 287 http://hdl.handle.net/10.1007/s10640-008-9191-2 text/html Access to full text is restricted to subscribers. A. Ellerman Barbara Buchner barbara.buchner@iea.org
oai:RePEc:kap:enreec:v:32:y:2005:i:1:p:113-1272020-08-08RePEc:kap:enreec
article The Willingness to Accept Value of Statistical Life Relative to the Willingness to Pay Value: Evidence and Policy Implications Large disparities between willingness to accept (WTA) and willingness to pay (WTP) based values of statistical life are commonly encountered in empirical studies. Standard economic theory suggests that if a public good is easily substitutable there should be no marked disparity between WTA and WTP values for the good, though the disparity increases with reduced substitutability. However, psychologists have shown that people often treat gains and losses asymmetrically and tend to require a substantially larger increase in wealth to compensate for a loss than the amount they would be willing to pay for an equivalent gain. Although most transport projects may aim to improve safety, situations arise when a relaxation of an existing regulation saves resources but increases the risk of death and injuries. A survey was recently carried out in New Zealand to determine people’s willingness to pay to reduce road risks and their willingness to accept compensation for an increase in risk. This paper reports the disparity observed between the two measures and considers some of the problems posed for policymakers. Copyright Springer 2005 safety policy, willingness to accept disparity, 1 2005 32 09 Environmental and Resource Economics 113 127 http://hdl.handle.net/10.1007/s10640-005-6030-6 text/html Access to full text is restricted to subscribers. Jagadish Guria Joanne Leung Michael Jones-Lee Graham Loomes g.loomes@uea.ac.uk
oai:RePEc:kap:enreec:v:41:y:2008:i:3:p:419-4352020-08-08RePEc:kap:enreec
article Incremental and Average Control Costs in a Model of Water Quality Trading with Discrete Abatement Units Discrete abatement, Incremental control cost, Average control cost, Willingness to pay, D61, Q53, 3 2008 41 11 Environmental and Resource Economics 419 435 http://hdl.handle.net/10.1007/s10640-008-9200-5 text/html Access to full text is restricted to subscribers. Arthur Caplan acaplan@econ.usu.edu
oai:RePEc:kap:enreec:v:23:y:2002:i:3:p:319-3422020-08-08RePEc:kap:enreec
article Managing Nonindigenous Invasive Species: Insights from Dynamic Analysis Accidental introductions of nonindigenous invasive species impair ecosystems, increase the risk of native species extinctions, and cause substantial economic damages on a worldwide basis. Despite the magnitude of the problem, very little economic analysis has been focused on this topic to date. This manuscript develops an optimal control model of the management of a nonindigenous species stock following its introduction and establishment. We find that the influence of changes in ecological and human factors (such as the invader's intrinsic growth rate, carrying capacity, and the effectiveness of invasive species management technologies) on the optimal level of management are analytically (mathematically) ambiguous in sign and depend on the values of other parameters and variables. To estimate actual numerical solutions to the model and conduct sensitivity analyses, we construct a case study illustration based on invasive plant species on arid lands. The illustration shows that the optimal level of management effort is sensitive to biological and ecological factors (the stock's intrinsic rate of growth, the carrying capacity afforded the invasive species, and the form of the invader's growth function) that are species- and site-specific as well as uncertain given currently available scientific information. This highlights the need for better collaboration and information transfer between economists and scientists interested in this topic. Given that resources for addressing nonindigenous species threats typically are quite constrained, and complete eradication in a particular area is often technically infeasible, the model provides useful insight on optimal levels of ongoing management and how they may vary according to bioeconomic factors. Copyright Kluwer Academic Publishers 2002 bioeconomic modeling, biological invasions, invasive species, nonindigenous species, optimal control, 3 2002 23 11 Environmental and Resource Economics 319 342 http://hdl.handle.net/10.1023/A:1021275607224 text/html Access to full text is restricted to subscribers. Mark Eiswerth eiswerth@unr.edu Wayne Johnson
oai:RePEc:kap:enreec:v:51:y:2012:i:2:p:277-2962020-08-08RePEc:kap:enreec
article Corporate Expenditure on Environmental Protection Capital expenditure on pollution abatement, Environmental expenditure, Firm-level analysis, Manufacturing, Q52, 2 2012 51 2 Environmental and Resource Economics 277 296 http://hdl.handle.net/10.1007/s10640-011-9499-1 text/html Access to full text is restricted to subscribers. Stefanie Haller stefanie.haller@esri.ie Liam Murphy
oai:RePEc:kap:enreec:v:10:y:1997:i:1:p:101-1072020-08-08RePEc:kap:enreec
article Economic Impact of the Energy Price Increase in Mexico 1 1997 10 7 Environmental and Resource Economics 101 107 http://hdl.handle.net/10.1023/A:1026429100787 text/html Access to full text is restricted to subscribers. NOEL Uri ROY Boyd
oai:RePEc:kap:enreec:v:22:y:2002:i:4:p:521-5362020-08-08RePEc:kap:enreec
article Refuge Strategies for Managing Pest Resistance in Transgenic Agriculture When the application of pesticides placesselective evolutionary pressure on pestpopulations it can be useful to plant refugeareas: crop areas intended to encourage thebreeding of pests susceptible to the pesticide. Renewed interest in refuge areas has arisenwith recent advances in biotechnology andgenetically modified (GM) crops. This paperuses a simple model of evolution of pestpopulation and pest resistance to characterizethe socially optimal refuge strategy to managepest resistance. We show both that theestablishment of refuge areas might best bedelayed until resistance becomes an importantconcern, and that the use of refuge areas inthe long-run use will not be optimal if thefitness cost of resistance does not exceed thediscount rate. Copyright Kluwer Academic Publishers 2002 biotechnology, optimal control, pest resistance, 4 2002 22 8 Environmental and Resource Economics 521 536 http://hdl.handle.net/10.1023/A:1019836910018 text/html Access to full text is restricted to subscribers. Ramanan Laxminarayan ramanan@rff.org R. Simpson
oai:RePEc:kap:enreec:v:7:y:1996:i:1:p:79-942020-08-08RePEc:kap:enreec
article Environmental rights on the futures markets an application to the dutch manure market A study was carried out to analyze futures markets for tradable rights after a cash market was initiated. Furthermore, some indication was given on the size of such a futures market to provide insight into its viability. Futures markets can play a role in solving environmental problems, by making the market for pollution rights (i.e. P 2 O 5 rights) and agro rights (milk rights, sugar rights and P 2 O 5 rights) more effective and transparent. Moreover, the market for tradable rights would be able to meet the users' need for hedging. This paper investigated the possibility of introducing a futures markets for tradable P 2 O 5 rights and the commodity manure. Because there is already a cash market for manure, although not well developed yet, and there will be a cash market for P 2 O 5 rights, a futures market is a logical sequel. The futures market can play a role in implementing agricultural policy efficiently and with respect to manure and P 2 O 5 rights can be an economically efficient solution to environmental problems. Copyright Kluwer Academic Publishers 1996 Environmental rights, tradable permits, manure, futures markets, 1 1996 7 1 Environmental & Resource Economics 79 94 http://hdl.handle.net/10.1007/BF00420428 text/html Access to full text is restricted to subscribers. J. Pennings M. Meulenberg W. Heijman
oai:RePEc:kap:enreec:v:29:y:2004:i:1:p:1-202020-08-08RePEc:kap:enreec
article Considering Aquacultural Externality in Coastal Land Allocation Decisions in India Commercial aquaculture in India has come under attack for having caused negative agricultural and environmental impacts. This paper formulates an interactive model of non-renewable and renewable resources to characterize land allocations between aquaculture and agriculture in ecologically and economically sustainable fashion. Through an empirical application, various economic and policy circumstances that affect the optimal land allocation mix are evaluated. The aquaculture industry must address two economic effects: off-site negative effects on renewable food and other coastal resources, and on-site self-pollution of shrimp ponds. Current regulatory and land-use policies are inadequate to address these effects. Copyright Kluwer Academic Publishers 2004 aquaculture, externality, India, non-renewable resources, renewable resources, salinity, 1 2004 29 9 Environmental and Resource Economics 1 20 http://hdl.handle.net/10.1023/B:EARE.0000035424.64335.6d text/html Access to full text is restricted to subscribers. Mahadev Bhat bhatm@fiu.edu Ramachandra Bhatta
oai:RePEc:kap:enreec:v:10:y:1997:i:3:p:285-3002020-08-08RePEc:kap:enreec
article Pollution Accumulation and Firm Incentives to Accelerate Technological Change Under Uncertain Private Benefits The paper explores the relationships between the design of public incentives and the policy-maker's desired timing of abandonment of a polluting technology, when this requires an irreversible private investment and the firm faces uncertain appropriable benefits from the technological change. Two regulatory approaches are examined. Firstly, we consider the quite common one of lowering the private investment cost, through a subsidy, in order to bridge the gap between the private and the policy-maker's desired timing of environmental innovation. Secondly, we consider a policy scenario where the regulator, instead of simply lowering the investment's rental price, also stimulates abandonment of the polluting technology by reducing – through appropriate announcements – the uncertainty surrounding the technological switch's private profitability. We then compare the two approaches and show the latter's benefits, in terms of the policy's effectiveness and/or budgetary savings. Copyright Kluwer Academic Publishers 1997 environmental policy, technological change, irreversibility, 3 1997 10 10 Environmental and Resource Economics 285 300 http://hdl.handle.net/10.1023/A:1026426932710 text/html Access to full text is restricted to subscribers. Cesare Dosi Dosi@decon.unipd.it Michele Moretto
oai:RePEc:kap:enreec:v:33:y:2006:i:2:p:223-2502020-08-08RePEc:kap:enreec
article The Empirics of Wetland Valuation: A Comprehensive Summary and a Meta-Analysis of the Literature Wetlands are highly productive ecosystems, providing a number of goods and services that are of value to people. The open-access nature and the public-good characteristics of wetlands often result in these regions being undervalued in decisions relating to their use and conservation. There is now a substantial literature on wetland valuation, including two meta-analyses that examine subsets of the available wetland valuation literature. We collected over 190 wetland valuation studies, providing 215 value observations, in order to present a more comprehensive meta-analysis of the valuation literature that includes tropical wetlands (e.g., mangroves), estimates from diverse valuation methodologies, and a broader range of wetland services (e.g., biodiversity value). We also aim for a more comprehensive geographical coverage. We find that socio-economic variables, such as income and population density, that are often omitted from such analyses are important in explaining wetland value. We also assess the prospects for using this analysis for out-of-sample value transfer, and find average transfer errors of 74%, with just under one-fifth of the transfers showing errors of 10% or less. Copyright Springer 2006 meta-analysis, valuation, value transfer, wetlands, C53, D62, H23, Q20, Q25, 2 2006 33 02 Environmental & Resource Economics 223 250 http://hdl.handle.net/10.1007/s10640-005-3104-4 text/html Access to full text is restricted to subscribers. Luke Brander luke.brander@ivm.falw.vu.nl Raymond Florax Jan Vermaat
oai:RePEc:kap:enreec:v:25:y:2003:i:3:p:319-3412020-08-08RePEc:kap:enreec
article CVM Embedding Effects When There Are Active, Potentially Active and Passive Users of Environmental Goods Embedding is said to occur when thewillingness-to-pay (WTP) values for a gooddiffer according to whether the good is valuedon its own or as part of a package of goods. Itcan manifest itself as a question order orsequencing effect whereby the WTP for a gooddepends upon the order in which contingentvaluation questions are asked. Usingsplit-sample data from different questionorderings of a survey administered to a generalpopulation, the willingness-to-pay values forimprovements to three recreational activities(swimming, fishing, and boating in HamiltonHarbour, Ontario, Canada) are estimated. Respondents are divided into three types ofuser groups: active users, potentially activeusers, and passive users. The paper thenexamines the extent to which embedding in theform of different question sequences affectseach of these three user types. Severalarguments are put forward to suggest whypassive users might be more susceptible toquestion order than active users. The resultssupport the hypothesis that order effects arelikely to be larger for passive users and alsoshow that potentially active users may beaffected by question order to a greater extentthan active users. This highlights theimportance of considering context when usingmultiple-question CVM to value passive usegoods. Copyright Kluwer Academic Publishers 2003 CVM, embedding, fishing, passive users, sequencing, substitutes, swimming, willingness-to-pay, 3 2003 25 7 Environmental and Resource Economics 319 341 http://hdl.handle.net/10.1023/A:1024446110640 text/html Access to full text is restricted to subscribers. Diane Dupont diane.dupont@brocku.ca
oai:RePEc:kap:enreec:v:60:y:2015:i:1:p:81-982020-08-08RePEc:kap:enreec
article An Economic Analysis of Earth Orbit Pollution Space debris, an externality generated by expended launch vehicles and damaged satellites, reduces the expected value of space activities by increasing the probability of damaging existing satellites or other space vehicles. Unlike terrestrial pollution, debris created in the production process interacts with firms’ final products, and is, moreover, self-propagating: collisions between debris or extant satellites creates additional debris. We construct a formal model to explore private incentives to launch satellites and to mitigate space debris. The model predicts that, relative to the social optimum, firms launch too many satellites and choose technologies which create more debris than is socially optimal. We discuss remediation strategies and policies, and demonstrate that Pigovian taxes can be used to internalize the debris externality. Copyright Springer Science+Business Media Dordrecht 2015 Orbital debris, Economics of space, Space pollution, 1 2015 60 1 Environmental and Resource Economics 81 98 http://hdl.handle.net/10.1007/s10640-013-9758-4 text/html Access to full text is restricted to subscribers. Nodir Adilov adilovn@ipfw.edu Peter Alexander Brendan Cunningham
oai:RePEc:kap:enreec:v:29:y:2004:i:3:p:375-3772020-08-08RePEc:kap:enreec
article Book Review: Tom Tietenberg and Henk Folmer, eds., 2002. The International Yearbook of Environmental and Resource Economics 2002/2003: A Survey of Current Issues. Edward Elgar, Cheltenham, UK. 448 pp. £74.95. ISBN 1 84064 949 6 3 2004 29 11 Environmental and Resource Economics 375 377 http://hdl.handle.net/10.1007/s10640-004-1599-8 text/html Access to full text is restricted to subscribers. Michele Villinski
oai:RePEc:kap:enreec:v:65:y:2016:i:1:d:10.1007_s10640-015-9932-y2020-08-08RePEc:kap:enreec
article Environmental Regulation in a Mixed Economy Abstract Many developing countries are mixed economies in which public and private firms engage in Cournot competition. We show that some fundamental results in environmental economics fail to hold in these economies: more stringent environmental regulation does not necessarily reduce pollution levels, the equivalence between environmental taxes and standards breaks down, and not every emission level can be induced by emission taxes. These results are due to the endogeneity of the public firm CEO’s career choices. Instruments that can induce the CEO to choose a public career are most effective in reducing emissions and improving social welfare. Mixed economy, Environmental regulation, Developing countries 1 2016 65 9 13 Environmental and Resource Economics 273 295 Q58 L13 L32 http://link.springer.com/10.1007/s10640-015-9932-y text/html Abstract Guangliang Ye Renmin University of China Jinhua Zhao jzhao@msu.edu Michigan State University
oai:RePEc:kap:enreec:v:19:y:2001:i:4:p:361-3812020-08-08RePEc:kap:enreec
article Voluntary Environmental Agreements vs. Emission Taxes in Strategic Trade Models The purpose of the paper is to narrow the gap between the widespread use of voluntary agreements and research on the rationale of such approaches. A topical example are voluntary agreements of many industries to reduce carbon dioxide emissions because of global warming. If the industry anticipates that taxes and fees will be introduced in the coming years, it seems rational to act in advance in order to mitigate the tax levels. The conventional approach in strategic trade and tax models was to look at a two-stage game where governments set taxes first and then firms react. In such a policy regime the government is concerned about the international competitiveness of its firms and sets taxes below marginal damages. In this paper, we consider a policy regime with a reversed timing. Firms commit themselves in the face of emission taxes to abatement efforts and to lower levels of the environmentally intensive output. Then the government introduces the tax. Under this timing of strategies the tax is equal to marginal damage. Firms waive profit and reduce output in order to use less of the polluting input. The reward for this behavior will be a less strict use of policy instruments and hence lower abatement costs in the near future. Copyright Kluwer Academic Publishers 2001 emission taxes, environmental policy, strategic trade policy, voluntary agreements, 4 2001 19 8 Environmental and Resource Economics 361 381 http://hdl.handle.net/10.1023/A:1011683702569 text/html Access to full text is restricted to subscribers. Klaus Conrad kconrad@rumms.uni-mannheim.de
oai:RePEc:kap:enreec:v:64:y:2016:i:1:d:10.1007_s10640-014-9860-22020-08-08RePEc:kap:enreec
article Unilateral Emission Cuts and Carbon Leakages in a Dynamic North–South Trade Model Abstract The effects of a unilateral cut in emissions are analyzed in a dynamic two-country model. Two (intermediate) goods are produced, one of which uses the fossil fuel. These inputs are traded and combine to produce a final good. The effect of a cut in fossil fuel use by a bloc (e.g. Annexure 1 countries in the Kyoto Protocol) depends on whether the fuel is priced at marginal cost or above. In the latter case a “green paradox” may appear. The paper’s contribution lies in analyzing the dynamics and trade implications of the unilateral action. Unilateral emission cuts, Kyoto Protocol, Carbon leakage, Green paradox, Hotelling rule 1 2016 64 5 7 Environmental and Resource Economics 131 152 http://link.springer.com/10.1007/s10640-014-9860-2 text/html Abstract Partha Sen partha@econdse.org Delhi University
oai:RePEc:kap:enreec:v:25:y:2003:i:4:p:501-5132020-08-08RePEc:kap:enreec
article Can the Risks of the Kyoto Mechanisms be Reduced Through Portfolio Diversification? Evidence from the Swedish AIJ Program Through Joint Implementationand the Clean Development Mechanism, reductionsof greenhouse gas emissions achieved abroad canbe credited to domestic firms. However, thetechnical, economic and political risksinvolved may prevent the private sector frominvesting in such projects. This paperdescribes three types of risks which emissionreduction projects are exposed to. Eleven pilotprojects carried out under the ActivitiesImplemented Jointly (AIJ) program and financedby Sweden are evaluated. Actual project costsare found to exceed projected costs in allcases. Annual emission reductions also deviatefrom their expected values and vary stronglyover time, supporting the hypothesis that suchprojects are risky business. The riskmanagement tool portfolio diversification isapplied to a sample of Swedish AIJ projects.The results indicate that diversification canreduce the risks of greenhouse gas mitigationprojects significantly. Thus, carbon funds area promising way of lowering the risks of theKyoto Mechanisms for private sector investors. Copyright Kluwer Academic Publishers 2003 activities implemented jointly, carbon fund, clean development mechanism, joint implementation, portfolio diversification, risk, 4 2003 25 8 Environmental and Resource Economics 501 513 http://hdl.handle.net/10.1023/A:1025094313693 text/html Access to full text is restricted to subscribers. Urs Springer springer@ecoplan.ch
oai:RePEc:kap:enreec:v:13:y:1999:i:1:p:1-112020-08-08RePEc:kap:enreec
article An Algorithm for Optimal Pigouvian Taxes Without Benefits Data The Pigouvian prescription to internalize external diseconomies and to achieve the optimum social equilibrium is well known: a unit tax on polluting activities equal to the marginal social damage arising at the after-tax optimal level of activity. If an authority imposes an effluent fee on emissions equal to the marginal social damage, the resulting equilibrium is Pareto-efficient. It has not been possible to translate the Pigouvian dictum into actual because of the problem of quantifying such a tax and its heavy subjective information requirements. This makes the monetary value of the damage difficult to determine. In order to overcome this difficulty, this paper develops a different theoretical approach. The main goal is to provide the environmental authority with an algorithm which allows policy-makers to base decisions on technical data (i.e. firms' production functions) rather than on subjective information (i.e. individuals' utility functions). The paper illustrates advantages offered by this approach, providing some theoretical and practical conditions useful in calculating the optimal tax. Copyright Kluwer Academic Publishers 1999 algorithm, externalities, optimal tax, 1 1999 13 1 Environmental and Resource Economics 1 11 http://hdl.handle.net/10.1023/A:1008369309030 text/html Access to full text is restricted to subscribers. Salvatore Bimonte bimonte@econ-pol.unisi.it
oai:RePEc:kap:enreec:v:33:y:2006:i:3:p:273-2972020-08-08RePEc:kap:enreec
article Can Natural Experiments Measure Behavioral Responses to Environmental Risks? Efforts to measure people’s responses to spatially delineated risks confront the potential for correlation between these risks and other, unobserved characteristics of these locations. The possibility of correlation arises in part because individuals observe other locational attributes that can be expected to influence the hedonic equilibrium. One response to this problem is to use events from nature to exploit both temporal and spatial variation in the behavioral responses of interest. This paper evaluates the use of hurricanes as a source of new risk information to households in coastal counties potentially subject to the effects of these storms. We study the extent to which housing prices before and after hurricane Andrew, a hurricane with unprecedented property loss, reveal how Floridians responded to the risk information provided by the storm. Two counties are selected – one without and another with damage from the hurricane. To evaluate the plausibility of using quasi-random experiments for locations not directly affected by natural events, we compare Lee County’s results to those of Dade County, where the majority of the damage occurred. Our findings suggest, after controlling for ex post storm damage and changes in insurance markets, there is a reasonably high level of consistency in a repeat sales model’s ability to estimate the effects of the risk information conveyed by the storm for both counties. Copyright Springer 2006 hurricane risk, repeat sales, hedonic models, Q51, Q54, 3 2006 33 03 Environmental & Resource Economics 273 297 http://hdl.handle.net/10.1007/s10640-005-3610-4 text/html Access to full text is restricted to subscribers. Jared Carbone Daniel Hallstrom V. Smith kerry_smith@ncsu.edu
oai:RePEc:kap:enreec:v:60:y:2015:i:1:p:99-1242020-08-08RePEc:kap:enreec
article Sectors Under Scrutiny: Evaluation of Indicators to Assess the Risk of Carbon Leakage in the UK and Germany One of the central debates surrounding the design of the European Union Emissions Trading Scheme is the approach to address carbon leakage concerns. Correctly identifying the economic activities exposed to the risk of carbon leakage represents the first step in mitigating the risk effectively. This paper assesses the robustness of the quantitative assessment criteria used by the European Commission for Phase 3. For example we apply the criteria to data for UK and Germany and compare the results with the Commissions’ assessment conducted at the aggregated EU level. This reveals that sectors’ exposure risk to carbon leakage can vary across different Member States due to differences in production processes, technologies and fuel mix; process emissions; recycling rate differences; product mix differences; sector classification, statistical boundaries, activity allocation differences; and finally difference in data quality. Overall, we find that relative carbon intensity of sectors, measured as cost increase relative to gross value added, provides a robust metric. The analysis also highlights the importance of using high quality and disaggregated data for this assessment. Copyright Springer Science+Business Media Dordrecht 2015 Emissions trading, Carbon leakage, Emissions leakage, Trade effects, Cost exposure, Q58, Q54, H23, F13, F18, H87, 1 2015 60 1 Environmental and Resource Economics 99 124 http://hdl.handle.net/10.1007/s10640-014-9759-y text/html Access to full text is restricted to subscribers. Misato Sato m.sato1@lse.ac.uk Karsten Neuhoff Verena Graichen Katja Schumacher Felix Matthes
oai:RePEc:kap:enreec:v:4:y:1994:i:6:p:581-5942020-08-08RePEc:kap:enreec
article Management of common property resources: Limits to voluntary collective action This paper finds that the voluntary collective action may be an alternative to market and government in the management of common property resources. In developing countries, the people's capabilities to harness the preserved commons and the fairness in the appropriation of benefits from them are the limits on the voluntary collective action. It shows that collective action is possible if an outside agency plays the role of a catalyst in mitigating these limits. It also shows that there can be mutually beneficial sharing arrangements between government and village communities for the management of local forest resources. The standard result that common and state property resources turn into open access resources as population grows also holds good for the natural resources jointly managed by government and people. Copyright Kluwer Academic Publishers 1994 JEL Classification, H23, 6 1994 4 12 Environmental & Resource Economics 581 594 http://hdl.handle.net/10.1007/BF00693047 text/html Access to full text is restricted to subscribers. M. Murty
oai:RePEc:kap:enreec:v:62:y:2015:i:4:p:873-9062020-08-08RePEc:kap:enreec
article Auctioning Versus Grandfathering in Cap-and-Trade Systems with Market Power and Incomplete Information We compare auctioning and grandfathering as allocation mechanisms of emission permits when there is a secondary market with market power and firms have private information on their own abatement technologies. Based on real-life cases such as the EU ETS, we consider a multi-unit, multi-bid uniform auction. At the auction, each firm anticipates its role in the secondary market, either as a leader or a follower. This role affects each firms’ valuation of the permits (which are not common across firms) as well as their bidding strategies and it precludes the auction from generating a cost-effective allocation of permits, as it occurs in simpler auction models. Auctioning tends to be more cost-effective than grandfathering when the firms’ abatement cost functions are sufficiently different from one another, especially if the follower has lower abatement costs than the leader and the dispersion of the marginal costs is large enough. Copyright Springer Science+Business Media Dordrecht 2015 Cap-and-trade systems, Auctions, Grandfathering , Market power, Incomplete information, D44, Q58, L13, 4 2015 62 12 Environmental and Resource Economics 873 906 http://hdl.handle.net/10.1007/s10640-014-9839-z text/html Access to full text is restricted to subscribers. Francisco Álvarez Francisco André andre@ccee.ucm.es
oai:RePEc:kap:enreec:v:34:y:2006:i:2:p:247-2672020-08-08RePEc:kap:enreec
article The Impact of Equity-preferences on the Stability of International Environmental Agreements This paper uses a coalition formation model to explore how equity considerations affect countries’ cooperation on global environmental issues, e.g. on climate change. When developing countries are exempted from obligations to reduce their emissions, I find that opening them for abatement projects financed by industrialized countries changes the incentives to cooperate in a way which can increase emissions and decrease welfare. Equity- concerns in industrialized countries regarding the difference between their per capita emission levels and those of developing countries lead to increased abatement but do not qualitatively change the incentives to cooperate. Inequality-aversion with respect to differences to abatement targets across industrialized countries generally induces larger coalition sizes and stricter abatement. Here, the inclusion of developing countries improves upon the prospects of cooperation. Copyright Springer 2006 coalition formation, equity preference, inequality aversion, international environmental negotiations, per capita emission levels, C7, D63, H41, Q00, 2 2006 34 06 Environmental & Resource Economics 247 267 http://hdl.handle.net/10.1007/s10640-005-0006-4 text/html Access to full text is restricted to subscribers. Andreas Lange alange@arec.umd.edu
oai:RePEc:kap:enreec:v:8:y:1996:i:4:p:417-4302020-08-08RePEc:kap:enreec
article Macroeconomic and sectoral effects of energy taxation in Austria This paper analyses the effects of energy taxation on the Austrian economy. Simulations are carried out with a linked input-output macromodel. The macroeconomic effects of an energy tax on economic growth, employment, the rate of inflation (change in the consumer price index), the budget deficit and the current account will be explained, as well as the sectoral impact on different industries. Copyright Kluwer Academic Publishers 1996 energy taxation, modelling and simulation, 4 1996 8 12 Environmental & Resource Economics 417 430 http://hdl.handle.net/10.1007/BF00357411 text/html Access to full text is restricted to subscribers. Angela Koeppl Kurt Kratena Claudia Pichl Fritz Schebeck Stefan Schleicher Michael Wueger
oai:RePEc:kap:enreec:v:57:y:2014:i:3:p:431-4522020-08-08RePEc:kap:enreec
article Improving Environmental Performance: A Challenge for Romania The transition process in Central and Eastern Europe was associated with growing environmental awareness. This paper analyses the determinants of pollution abatement and control expenditure at plant level in the case of Romania using survey data and a multilevel regression model. Our findings suggest that, although Romania has improved its environmental performance, formal and informal regulations are still only partially developed owing to the difficulties of economic transition, and heterogeneity across regions remains considerable. Copyright Springer Science+Business Media Dordrecht 2014 Pollution abatement and control expenditure, Transition economy, Multilevel regression model (MRM), Q52, C29, C40, 3 2014 57 3 Environmental and Resource Economics 431 452 http://hdl.handle.net/10.1007/s10640-013-9687-2 text/html Access to full text is restricted to subscribers. Robert Sova robertsova@yahoo.com Christophe Rault chrault@hotmail.com http://chrault3.free.fr/ Guglielmo Caporale Guglielmo-Maria.Caporale@brunel.ac.uk Anamaria Sova anamariasova@yahoo.fr
oai:RePEc:kap:enreec:v:51:y:2012:i:3:p:353-3692020-08-08RePEc:kap:enreec
article Timing of Mitigation and Technology Availability in Achieving a Low-Carbon World Climate policy, Stabilization costs, C72, H23, Q25, Q28, 3 2012 51 3 Environmental and Resource Economics 353 369 http://hdl.handle.net/10.1007/s10640-011-9502-x text/html Access to full text is restricted to subscribers. Valentina Bosetti Valentina.bosetti@feem.it Carlo Carraro Massimo Tavoni
oai:RePEc:kap:enreec:v:44:y:2009:i:3:p:337-3502020-08-08RePEc:kap:enreec
article The Timing and Strategic Role of Self-Protection Self-protection, Abatement, Mitigation, Adaptation, Cost-efficiency, Strategic behaviors, C73, H41, Q52, Q58, 3 2009 44 11 Environmental and Resource Economics 337 350 http://hdl.handle.net/10.1007/s10640-009-9289-1 text/html Access to full text is restricted to subscribers. Ficre Zehaie ficre.zehaie@ekon.slu.se
oai:RePEc:kap:enreec:v:50:y:2011:i:2:p:305-3232020-08-08RePEc:kap:enreec
article Optimal Conservation Programs, Asymmetric Information and the Role of Fixed Costs Asymmetric information, Payments for ecosystem services, Mechanism design, D82, H23, Q57, 2 2011 50 10 Environmental and Resource Economics 305 323 http://hdl.handle.net/10.1007/s10640-011-9474-x text/html Access to full text is restricted to subscribers. Carmen Arguedas Daan Soest d.p.van.soest@vu.nl
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article Bilateral Oligopoly, Private Information, and Pollution Permit Markets Bilateral oligopoly, Pollution permits, Private information, D43, D82, L13, Q5, 4 2009 43 8 Environmental and Resource Economics 553 572 http://hdl.handle.net/10.1007/s10640-008-9249-1 text/html Access to full text is restricted to subscribers. David Malueg david.malueg@ucr.edu Andrew Yates ayates2@richmond.edu
oai:RePEc:kap:enreec:v:37:y:2007:i:3:p:549-5712020-08-08RePEc:kap:enreec
article Economy-wide Estimates of the Implications of Climate Change: Sea Level Rise The economy-wide implications of sea level rise in 2050 are estimated using a static computable general equilibrium model. This allows for a better estimate of the welfare effects of sea level rise than the common direct cost estimates; and for an estimate of the impact of sea level rise on greenhouse gas emissions. Overall, general equilibrium effects increase the welfare costs of sea level rise, but not necessarily in every sector or region. In the absence of coastal protection, economies that rely most on agriculture are hit hardest. Although energy is substituted for land, overall energy consumption falls with the shrinking economy, hurting energy exporters. With full coastal protection, GDP increases, particularly in regions with substantial dike building, but utility falls, least in regions that protect their coasts and export energy. Energy prices rise and energy consumption falls. The costs of full protection exceed the costs of losing land. The results also show direct costs – the usual method for estimating welfare changes due to sea level rise – are a bad approximation of the general equilibrium welfare effects; previous estimates of the economic impact of sea level rise are therefore biased. Copyright Springer Science+Business Media, Inc. 2007 computable general equilibrium, impacts of climate change, sea level rise, C68, D58, Q25, 3 2007 37 7 Environmental and Resource Economics 549 571 http://hdl.handle.net/10.1007/s10640-006-9048-5 text/html Access to full text is restricted to subscribers. Francesco Bosello Roberto Roson roson@unive.it Richard Tol
oai:RePEc:kap:enreec:v:3:y:1993:i:3:p:297-3122020-08-08RePEc:kap:enreec
article Assessing the impact of environmental charges a partial general equilibrium model of the forest sector This paper provides a theoretical and empirical analysis of how environmental charges affect a particular sector of the economy. Our approach allows a simple comparison of how partial and “general” equilibrium results may differ. Copyright Kluwer Academic Publishers 1993 Environmental charges, welfare measurement, partial vs. general equilibrium, Bailey demand curve, chlorine, 3 1993 3 6 Environmental & Resource Economics 297 312 http://hdl.handle.net/10.1007/BF00313164 text/html Access to full text is restricted to subscribers. Runar Brännlund Bengt Kriström
oai:RePEc:kap:enreec:v:52:y:2012:i:1:p:49-642020-08-08RePEc:kap:enreec
article Adaptation and Mitigation in Global Pollution Problems: Economic Impacts of Productivity, Sensitivity, and Adaptive Capacity Global pollution, Adaptation, Mitigation, Cooperative behavior, Nash equilibrium, Comparative Statics, Q58, Q54, 1 2012 52 5 Environmental and Resource Economics 49 64 http://hdl.handle.net/10.1007/s10640-011-9519-1 text/html Access to full text is restricted to subscribers. Udo Ebert ebert@uni-oldenburg.de Heinz Welsch welsch@uni-oldenburg.de
oai:RePEc:kap:enreec:v:52:y:2012:i:2:p:293-3002020-08-08RePEc:kap:enreec
article Capital Gains and Income Arising from Nonrenewable Resources Capital gains, Income, Social welfare, Wealth, Genuine saving, Non-renewable resource, Comprehensive national accounting, 2 2012 52 6 Environmental and Resource Economics 293 300 http://hdl.handle.net/10.1007/s10640-011-9531-5 text/html Access to full text is restricted to subscribers. Taoyuan Wei taoyuan.wei@cicero.uio.no http://folk.uio.no/taoyuaw
oai:RePEc:kap:enreec:v:65:y:2016:i:1:d:10.1007_s10640-015-9953-62020-08-08RePEc:kap:enreec
article Network Economics and the Environment: Insights and Perspectives Abstract Local interactions and network structures appear to be a prominent feature of many environmental problems. This paper discusses a wide range of issues and potential areas of application, including the role of relational networks in the pattern of adoption of green technologies, common pool resource problems characterized by a multiplicity of sources, the role of social networks in multi-level environmental governance, infrastructural networks in the access to and use of natural resources such as oil and natural gas, the use of networks to describe the internal structure of inter-country relations in international agreements, and the formation of bilateral “links” in the process of building up an environmental coalition. For each of these areas, we examine why and how network economics would be an effective conceptual and analytical tool, and discuss the main insights that we can foresee. Networks, Environmental externalities, Technological diffusion, Gas pipelines, Common-pool resources, Multi-level governance, Coalitions 1 2016 65 9 9 Environmental and Resource Economics 159 189 http://link.springer.com/10.1007/s10640-015-9953-6 text/html Abstract Sergio Currarini s.currarini@unive.it sc526@le.ac.uk University of Leicester and Universita’ Ca’ Foscari di Venezia Carmen Marchiori c.marchiori@lse.ac.uk London School of Economics and Political Science Alessandro Tavoni a.tavoni@lse.ac.uk London School of Economics and Political Science
oai:RePEc:kap:enreec:v:50:y:2011:i:1:p:1-262020-08-08RePEc:kap:enreec
article A Bayesian Bioeconometric Model of Invasive Species Control: The Case of the Hemlock Woolly Adelgid Bioeconometrics, Ecosystem services, Gibbs sampling, Hemlock woolly adelgid, Invasive species, Nonmarket valuation, 1 2011 50 9 Environmental and Resource Economics 1 26 http://hdl.handle.net/10.1007/s10640-011-9457-y text/html Access to full text is restricted to subscribers. Christopher Moore moore.chris@epa.gov Daniel Phaneuf Walter Thurman
oai:RePEc:kap:enreec:v:26:y:2003:i:2:p:249-2672020-08-08RePEc:kap:enreec
article A Contingent Valuation Estimate of the Benefits of Wolves in Minnesota In this paper we estimate the willingness topay for a wolf management plan and a wolfdamage plan in Minnesota using the contingentvaluation method. The theoretical definition ofwillingness to pay for wolf protection iscomposed of use and non-use values. Weincorporate a don't know response option in thedichotomous choice valuation questions. A largenumber of respondents answered don't know. Themultinomial logit model is used todifferentiate between don't know and noresponses. Non-use motives are importantfactors that explain willingness to pay. We usethese benefit estimates in combination with twoalternative cost estimates to consider theefficiency of the wolf management and damageplans. Both plans have estimated benefitsgreater than costs. Copyright Kluwer Academic Publishers 2003 CVM, endangered species, willingness to pay, 2 2003 26 10 Environmental and Resource Economics 249 267 http://hdl.handle.net/10.1023/A:1026356020521 text/html Access to full text is restricted to subscribers. Catherine Chambers John Whitehead
oai:RePEc:kap:enreec:v:54:y:2013:i:1:p:41-612020-08-08RePEc:kap:enreec
article Intertemporal Valuation of River Restoration Willingness to pay for an environmental improvement is a function of how long it takes to deliver the improvement. To measure the effect of time on benefits, I utilize a discrete choice experiment that includes an attribute for delay until the improvement occurs and simultaneously estimate discount rates and valuation parameters. I estimate the present value of immediate and delayed Minnesota River Basin improvements using discount rates directly estimated from the econometric model. Compared to an immediate river basin cleanup, Minnesota residents lose almost half of the benefits when cleanup is delayed by 5 years. Copyright Springer Science+Business Media B.V. 2013 Non-market valuation, Intertemporal choice, Discounting, Water pollution, D90, Q25, Q51, H43, 1 2013 54 1 Environmental and Resource Economics 41 61 http://hdl.handle.net/10.1007/s10640-012-9580-4 text/html Access to full text is restricted to subscribers. Andrew Meyer agmeyer@owu.edu
oai:RePEc:kap:enreec:v:45:y:2010:i:1:p:133-1552020-08-08RePEc:kap:enreec
article Renewable Energy Policies and Technological Innovation: Evidence Based on Patent Counts Environmental policy, Innovation, Patents, Renewable energy, Technological change, Q55, Q58, O34, O38, 1 2010 45 1 Environmental and Resource Economics 133 155 http://hdl.handle.net/10.1007/s10640-009-9309-1 text/html Access to full text is restricted to subscribers. Nick Johnstone Nick.Johnstone@oecd.org Ivan Haščič Ivan.Hascic@oecd.org David Popp dcpopp@maxwell.syr.edu
oai:RePEc:kap:enreec:v:58:y:2014:i:2:p:273-3022020-08-08RePEc:kap:enreec
article Is There a Long-Term Relationship Between Agricultural GHG Emissions and Productivity Growth? A Dynamic Panel Data Approach The paper adopts a single-country regional panel dataset to analyse the long-term relationship between agricultural greenhouse gases (GHG) emissions and productivity growth and, consequently, to assess emissions sustainability. The hypothesis of emission sustainability is assessed by estimating alternative panel model specifications with conventional and GMM estimators applied to the highly heterogeneous Italian regional agriculture, whose methane and nitrous oxide emissions are properly reconstructed for the periods 1951–2008 and 1980–2008. The modelling approach and the empirical specification include the environmental Kuznets curve (EKC) as one of the possible outcomes. Results suggest that, when a significant relationship between agricultural GHG emissions and productivity growth occurs, it is often monotonic and, though sustainability is accepted for some GHG, no univocal robust evidence of the EKC emerges across the different specifications, estimators and periods. Policy implications of this empirical evidence are finally drawn. Copyright Springer Science+Business Media Dordrecht 2014 Agricultural greenhouse gases emissions, Agricultural transformation, Dynamic panel models, Environmental Kuznets curve, 2 2014 58 6 Environmental and Resource Economics 273 302 http://hdl.handle.net/10.1007/s10640-013-9703-6 text/html Access to full text is restricted to subscribers. Silvia Coderoni coderoni@inea.it Roberto Esposti r.esposti@univpm.it
oai:RePEc:kap:enreec:v:2:y:1992:i:2:p:201-2202020-08-08RePEc:kap:enreec
article Bilateral transfers and lending in international environmental cooperation The paper analyzes environmental lending and transfers in a two country general equilibrium framework. The lender country chooses specific environmental investments which it finances in the neighbour country on the basis of the returns they generate for the lender. The gains from this kind of international environmental financing are illustrated with a numerical calibration of the model showing that the gains to the lender country may be fairly sizable in relation to the expenditure directed currently towards environmental protection. These gains, however, essentially depend on the terms of the environmental financing. We also find that debt-for-nature swaps do not in general produce efficient environmental protection if applied uniformly in international environmental financing. Copyright Kluwer Academic Publishers 1992 International environmental cooperation, environmental financing, debt-for-nature swap, 2 1992 2 3 Environmental & Resource Economics 201 220 http://hdl.handle.net/10.1007/BF00338243 text/html Access to full text is restricted to subscribers. Kari Alho
oai:RePEc:kap:enreec:v:56:y:2013:i:1:p:73-842020-08-08RePEc:kap:enreec
article Epstein–Zin Utility in DICE: Is Risk Aversion Irrelevant to Climate Policy? Climate change involves uncertain probabilities of catastrophic risks, and very longterm consequences of current actions. Climate economics, therefore, is centrally concerned with the treatment of risk and time. Yet conventional assumptions about utility and optimal economic growth create a perverse connection between risk aversion and time preference, such that more aversion to current risks implies less concern for future outcomes, and vice versa. The same conflation of risk aversion and time preference leads to the equity premium puzzle in finance. A promising response to the equity premium puzzle, the recursive utility of Epstein and Zin, allows separation of risk aversion and time preference—at the cost of considerable analytic complexity. We introduce an accessible implementation of Epstein–Zin utility into the DICE model of climate economics, creating a hybrid “EZ-DICE” model. Using Epstein–Zin parameters from the finance literature and climate uncertainty parameters from the science literature, we find that the optimal climate policy in EZ-DICE calls for rapid abatement of carbon emissions; it is similar to standard DICE results with the discount rate set to equal the risk-free rate of return. EZ-DICE solutions are sensitive to the intertemporal elasticity of substitution, but remarkably insensitive to risk aversion. Insensitivity to risk aversion may reflect the difficulty of modeling catastrophic risks within DICE. Implicit in DICE are strong assumptions about the cost of climate stabilization and the certainty and speed of success; under these assumptions, risk aversion would in fact be unimportant. A more realistic analysis will require a subtler treatment of catastrophic climate risk. Copyright Springer Science+Business Media Dordrecht 2013 Climate economics, Risk aversion, Epstein–Zin utility, DICE, Integrated assessment modeling, Climate sensitivity, Catastrophic risk, 1 2013 56 9 Environmental and Resource Economics 73 84 http://hdl.handle.net/10.1007/s10640-013-9645-z text/html Access to full text is restricted to subscribers. Frank Ackerman frankackerman12@gmail.com Elizabeth Stanton stantonea88@gmail.com Ramón Bueno Ramon.Bueno@sei-us.org
oai:RePEc:kap:enreec:v:51:y:2012:i:1:p:105-1182020-08-08RePEc:kap:enreec
article Disguised Protectionism, Global Trade Rules and Alien Invasive Species Invasive species, International trade, Political economy, Disguised protectionism, 1 2012 51 1 Environmental and Resource Economics 105 118 http://hdl.handle.net/10.1007/s10640-011-9490-x text/html Access to full text is restricted to subscribers. Michael Margolis mmargoli@gettysburg.edu Jason Shogren jramses@uwyo.edu
oai:RePEc:kap:enreec:v:3:y:1993:i:6:p:501-5312020-08-08RePEc:kap:enreec
article National and international policies for tropical rain forest conservation—A quantitative analysis for Cameroon This paper provides a numerical general equilibrium assessment of policies to reduce tropical deforestation in Cameroon. Market failure—mainly in the form of national and international externalities—and policy failures—such as highly distorted product markets—are identified as major sources of overexploitation. The ecological effects of deforestation control are shown to depend crucially upon its impact on land use patterns whereas its efficiency effects hinge on the manner in which a specified set-aside target is achieved. If the international community wants to ensure a higher level of protection of these forests, and to do so within a market-based system, the provision of conditional financial resources is neceassary. Copyright Kluwer Academic Publishers 1993 (JEL): Environmental management (Q2), computable general general equilibrium models (D58), Cameroon, 6 1993 3 12 Environmental & Resource Economics 501 531 http://hdl.handle.net/10.1007/BF00364057 text/html Access to full text is restricted to subscribers. Rainer Thiele Manfred Wiebelt
oai:RePEc:kap:enreec:v:37:y:2007:i:1:p:211-2322020-08-08RePEc:kap:enreec
article Beyond implicit prices: recovering theoretically consistent and transferable values for noise avoidance from a hedonic property price model Using a two-stage hedonic pricing methodology we estimate a system of structural demand equations for different sources of transport-related noise. In the first stage, we identify market segments using model-based clustering techniques and estimate separate hedonic price functions (HPFs) for each segment. In so doing, we show how a semiparametric spatial smoothing estimator outperforms other standard specifications of the HPF. In the second stage, we control for non-linearity of the budget constraint and identify demand relationships using techniques that account for problems of endogeneity and censoring of the dependent variable. Our estimated demand functions provide welfare estimates for peace and quiet that we believe to be the first derived from property market data in a theoretically consistent manner. Copyright Springer Science+Business Media, Inc. 2007 Noise, Non-market valuation, Hedonic pricing, Model-based clustering, Partial linear model, Spatial smoothing, Demand system, Simultaneous-equation Tobit, Q51, C14, C21, C24, 1 2007 37 5 Environmental and Resource Economics 211 232 http://hdl.handle.net/10.1007/s10640-007-9121-8 text/html Access to full text is restricted to subscribers. Brett Day brett.day@uea.ac.uk Ian Bateman Iain Lake
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article James K. Boyce, 2002, The Political Economy of the Environment 4 2002 23 12 Environmental and Resource Economics 482 485 http://hdl.handle.net/10.1023/A:1021348128977 text/html Access to full text is restricted to subscribers. William Shobe wshobe@dpb.state.va.us
oai:RePEc:kap:enreec:v:45:y:2010:i:3:p:353-3772020-08-08RePEc:kap:enreec
article Does the Porter Hypothesis Explain Expected Future Financial Performance? The Effect of Clean Water Regulation on Chemical Manufacturing Firms Chemical industry, Firm performance, Porter hypothesis, Regulated industries, Regulation, L25, L51, 3 2010 45 3 Environmental and Resource Economics 353 377 http://hdl.handle.net/10.1007/s10640-009-9318-0 text/html Access to full text is restricted to subscribers. Dylan Rassier dylanrassier@yahoo.com Dietrich Earnhart earnhart@ku.edu
oai:RePEc:kap:enreec:v:61:y:2015:i:1:p:87-902020-08-08RePEc:kap:enreec
article The Economic Incentives Underlying Resource and Environmental Depletion We discuss the current global economic crisis as an analog of short-term harvesting of a biological resource, in which motives of short-term profit over-ride sustainability considerations. Copyright Springer Science+Business Media Dordrecht 2015 Over-harvesting, Future discounting, Short-term economic incentives, 1 2015 61 5 Environmental and Resource Economics 87 90 http://hdl.handle.net/10.1007/s10640-014-9763-2 text/html Access to full text is restricted to subscribers. Colin Clark colin_clark@shaw.ca Jin Yoshimura
oai:RePEc:kap:enreec:v:37:y:2007:i:4:p:661-6802020-08-08RePEc:kap:enreec
article The effect of environmental and social performance on the stock performance of european corporations This paper examines the effect of sustainability performance of European corporations on their stock performance, measured as the average monthly stock return from 1996 to 2001. The econometric analysis is based on common empirical asset pricing models, particularly on the multifactor model according to Fama and French (1993, Journal of Financial Economics, 33:3–56). The consideration of sustainability performance is two-fold: The average sustainability performance of the industry in which a corporation operates and the relative sustainability performance of a corporation within a given industry. The main result is that the average environmental performance of the industry has a significantly positive influence on the stock performance. In contrast, the average social performance of the industry has a significantly negative influence. The variables of the relative environmental or social performance of a corporation within a given industry have no significant effect on the stock performance. As a by-product, the econometric analysis implies that some results of Fama and French (1993, 1996, The Journal of Finance, LI (1):55–84) regarding the risk factors of the multifactor model need not hold true for different observation periods, for different stock markets, and for the use of single stocks (instead of portfolios). Copyright Springer Science+Business Media, Inc. 2007 Sustainability, Environmental and social performance, Stock performance, CAPM, Multifactor model, Q01, Q56, G12, 4 2007 37 8 Environmental and Resource Economics 661 680 http://hdl.handle.net/10.1007/s10640-007-9082-y text/html Access to full text is restricted to subscribers. Andreas Ziegler ziegler@ccrs.unith.ch Michael Schröder Klaus Rennings
oai:RePEc:kap:enreec:v:12:y:1998:i:3:p:275-3062020-08-08RePEc:kap:enreec
article Renegotiation–Proof Equilibria in a Global Emission Game When Players Are Impatient In a two-country model, in which countries differ with respect to the perception of environmental damages and abatement costs, the stability of international environmental agreements is analyzed in a dynamic framework. Three types of agreements are considered: A socially optimal solution, a uniform emission tax (a tax equally applied in both countries) and a uniform emission reduction quota (an equal percentage emission reduction from a base year). Stability is checked for these agreements according to the concept of renegotiation-proofness. It is shown that the stability requirements depend crucially on the parameters defining the interests of the two countries and the type of agreement. Moreover, it is demonstrated that if punishment options are restricted for some reason the stability of an agreement may suffer. One important result of the paper is that if countries exhibit asymmetric interests, stability in the quota regime is higher than in the tax regime and in the social optimum. This might explain why emission reduction quotas have been so popular in international politics despite recommendations of economists to use market-based instruments. Copyright Kluwer Academic Publishers 1998 instrumental choice, international environmental agreements, renegotiation-proof contracts, 3 1998 12 10 Environmental and Resource Economics 275 306 http://hdl.handle.net/10.1023/A:1008211729093 text/html Access to full text is restricted to subscribers. Michael Finus michael.finus@fernuni-hagen.de Bianca Rundshagen
oai:RePEc:kap:enreec:v:12:y:1998:i:2:p:137-1502020-08-08RePEc:kap:enreec
article Consequences of Environmental Tax Reform for Unemployment and Welfare We investigate the welfare effects of environmental tax reform, i.e. raising environmental taxes and using the proceeds to reduce distortionary taxes on labour. The framework of analysis is a small open economy with involuntary unemployment due to a rigid consumer wage. Environmental tax reform boosts not only environmental quality but also employment if substitution between labour and resources is easy, the production share of the fixed factor is large, and the initial tax rates on resources and profits are small. If the initial tax system is sub-optimal with a negligible tax on resources, profits rise as well. Copyright Kluwer Academic Publishers 1998 double dividend, environmental quality, fixed factor, involuntary unemployment, labour tax, optimal taxation, pollution, tax reform, triple dividend, JEL classification: E60, H21, Q3, 2 1998 12 9 Environmental and Resource Economics 137 150 http://hdl.handle.net/10.1023/A:1016040327622 text/html Access to full text is restricted to subscribers. A. Bovenberg Frederick Van der Ploeg center@kub.nl
oai:RePEc:kap:enreec:v:62:y:2015:i:1:p:125-1612020-08-08RePEc:kap:enreec
article Consumer Learning and Hybrid Vehicle Adoption We study the effect of differences in product quality on new technology diffusion. We propose a model in which heterogeneity in perceived product quality affects consumer adoption. If consumers experientially infer the quality of a technology, an increase in initial exposure to a low-quality product may inhibit subsequent diffusion. Incentives intended to speed up adoption may in fact have the opposite effect, if they propagate low-quality signals. We examine the predictions of the model using sales data for 11 hybrid-vehicle models between 2000 and 2006. Consistent with press reports that the first-generation Insight was perceived to be of lower quality than the first-generation Prius, we find that, conditional on overall hybrid vehicle adoption in the first 2 years, locations with a relatively high Prius market share experienced faster subsequent adoption than states with a relatively high Insight market share. We estimate the elasticity of new hybrid sales with respect to the Prius penetration rate is 0.30–0.58, while the elasticity with respect to the Insight penetration rate is $$-$$ - 0.14 to $$-$$ - 0.44. Copyright Springer Science+Business Media Dordrecht 2015 Hybrid vehicles, Consumer behavior, Learning, Government incentives, Energy efficiency, O33, Q55, D83, 1 2015 62 9 Environmental and Resource Economics 125 161 http://hdl.handle.net/10.1007/s10640-014-9819-3 text/html Access to full text is restricted to subscribers. Garth Heutel gheutel@gsu.edu Erich Muehlegger emuehlegger@ucdavis.edu
oai:RePEc:kap:enreec:v:46:y:2010:i:2:p:135-1372020-08-08RePEc:kap:enreec
article 20th Anniversary of EAERE: The European Association of Environmental and Resource Economists 2 2010 46 6 Environmental and Resource Economics 135 137 http://hdl.handle.net/10.1007/s10640-010-9379-0 text/html Access to full text is restricted to subscribers. Partha Dasgupta Partha.Dasgupta@econ.cam.ac.uk
oai:RePEc:kap:enreec:v:14:y:1999:i:4:p:519-5432020-08-08RePEc:kap:enreec
article Valuation of Landmass Degradation Using Fuzzy Hedonic Method: A Case Study of National Capital Region A Hedonic model to determine the revealed willingness to pay for landmass of different suitability classes, based on landmass functional characteristics obtained through subjective assessments, is developed for the National Capital Region in India. The inherent non-specificity involved in subjective evaluation is minimized using fuzzy logic based regression technique. The proposed fuzzy regression involves regression using central values of triangular fuzzy number and minimization of non-specificity using linear programming. The revealed willingness-to-pay for landmass of different suitability classes is used for valuation of disbenefits due to urban expansion on landmass of different agricultural suitability classes in National Capital Territory of Delhi. Appropriate pricing policies to prevent the future inappropriate landuse practices are developed using the landmass valuation. Copyright Kluwer Academic Publishers 1999 Hedonic model, Fuzzy regression, Landmass degradation, 4 1999 14 12 Environmental and Resource Economics 519 543 http://hdl.handle.net/10.1023/A:1008357705800 text/html Access to full text is restricted to subscribers. Rakesh Paliwal Gejo Geevarghese P. Ram Babu P. Khanna
oai:RePEc:kap:enreec:v:63:y:2016:i:2:d:10.1007_s10640-015-9890-42020-08-08RePEc:kap:enreec
article Debt, Poverty and Resource Management in a Rural Smallholder Economy Abstract This paper develops a model to capture the key features of poverty, credit constraints and resource management faced by poor rural households. We assume that, due to the existence of asymmetric information and moral hazard, the household faces an increasing cost of credit as its debt/equity ratio rises. A household exploiting a natural resource may fall into a poverty trap, but only if it is unable to afford the increasing borrowing costs implied by increasing debt to allow it to avoid such a trap, or if it discounts future utility so much that a balanced growth path cannot be financed at any level of long-run borrowing. In contrast, along an optimal balanced growth path, the household’s asset wealth, purchased inputs, resource stock and consumption increase at the same constant rate. However, over the long run there may be carrying capacity limits that prevent the resource from improving further. The household may then direct its savings to accumulating financial assets, and eventually under certain conditions may become a net creditor with resource exploitation becoming a less and less important source of its income. Debt, Land degradation, Poverty traps, Less favoured agricultural land, Rural credit, Rural households 2 2016 63 2 11 Environmental and Resource Economics 411 427 Q0 Q2 O1 http://link.springer.com/10.1007/s10640-015-9890-4 text/html Abstract Edward B. Barbier ebarbier@uwyo.edu University of Wyoming Ramón E. López rlopez@umd.edu ramlopez@fen.uchile.cl University of Maryland University of Chile Jacob P. Hochard jhochard@uwyo.edu University of Wyoming
oai:RePEc:kap:enreec:v:22:y:2002:i:3:p:467-4682020-08-08RePEc:kap:enreec
article A Note on The Kyoto Protocol, Tradeable Quotas and Firm Survival There is a concern in many countries thatintroducing a tradeable greenhouse-gas quotasystem may lead to closures ofemission-intensive industrial companies.Jebjerg and Lando argue in an article publishedpreviously by this Journal that shutdowns canbe prevented by a generous distribution of freequotas. However, this is only true if thequotas are distributed contingent on continuedproduction. Some of the practical problems withconditional allocation of free tradeable quotascan be avoided by letting all free quotas benon-tradeable. Copyright Kluwer Academic Publishers 2002 3 2002 22 7 Environmental and Resource Economics 467 468 http://hdl.handle.net/10.1023/A:1016053630292 text/html Access to full text is restricted to subscribers. Cathrine Hagem
oai:RePEc:kap:enreec:v:11:y:1998:i:1:p:93-1062020-08-08RePEc:kap:enreec
article Some Empirical Indications of the Relationship Between Environmental Quality and Economic Development The paper examines the relation between countries' state of the environment (defined as acceptable, marginal or unacceptable, according to values of ambient accumulation of pollutants) and stage of economic development (defined as low, middle and high income), using the concentration of sulphur dioxide in urban areas and dissolved oxygen in rivers. Univariate and ordered probit models are estimated for air and water quality. The results indicate that the probability of having acceptable environmental quality in a country increases with respect to the examined pollutants as the country moves to a higher state of economic development. Copyright Kluwer Academic Publishers 1998 economic development, environmental pollution, probit, ordered probit, 1 1998 11 1 Environmental and Resource Economics 93 106 http://hdl.handle.net/10.1023/A:1008275213345 text/html Access to full text is restricted to subscribers. Anastasios Xepapadeas xepapad@fortezza.cc.ucr.gr Esma Amri
oai:RePEc:kap:enreec:v:2:y:1992:i:5:p:491-5122020-08-08RePEc:kap:enreec
article Social cost of CO 2 abatement from energy efficiency and solar power in the United States Frequently cited empirical analyses ask whether we should make the transition from reliance on fossil fuels to reduce greenhouse gas emissions, and conclude that the transition is too costly so we should, instead, focus policy on how to adapt to global warming. This paper makes two improvements in the analysis. First, this empirical analysis accounts for existing low-cost alternatives that are substitutes for fossil fuels. Second, this empirical analysis incorporates existing estimates of externalities from fossil fuels. These two basic improvements in the analysis alter the conclusion; policy should focus on how rapidly and extensively to make the transition from reliance on fossil fuels to the alternatives. The corollary is that we should focus on the efficacy and cost of policy options that are designed to accomplish the transition. Copyright Kluwer Academic Publishers 1992 Economics of global warming and greenhouse gases, externalities from energy use, conservation and energy efficiency, solar power, 5 1992 2 9 Environmental & Resource Economics 491 512 http://hdl.handle.net/10.1007/BF00376831 text/html Access to full text is restricted to subscribers. Darwin Hall
oai:RePEc:kap:enreec:v:32:y:2005:i:4:p:445-4932020-08-08RePEc:kap:enreec
article Declining Discount Rates: The Long and the Short of it The last few years have witnessed important advances in our understanding of time preference and social discounting. In particular, several rationales for the use of time-varying social discount rates have emerged. These rationales range from the ad hoc to the formal, with some founded solely in economic theory while others reflect principles of intergenerational equity. While these advances are to be applauded, the practitioner is left with a confusing array of rationales and the sense that almost any discount rate can be justified. This paper draws together these different strands and provides a critical review of past and present contributions to this literature. In addition to this we highlight some of the problems with employing DDRs in the decision-making process, the most pressing of which may be time inconsistency. We clarify their practical implications, and potential pitfalls, of the more credible rationales and argue that some approaches popular in environmental economics literature are ill-conceived. Finally, we illustrate the impact of different approaches by examining global warming and nuclear power investment. This includes an application and extension of Newell and Pizer [‘Discounting the benefits of climate change mitigation : how much do uncertain rates increase valuations?’ Journal of Environmental Economics and Management 46 (2003) 52] to UK interest rate data. Copyright Springer 2005 global warming, intergenerational equity, social cost benefit analysis, time inconsistency, uncertainty, time varying discount rates, 4 2005 32 12 Environmental & Resource Economics 445 493 http://hdl.handle.net/10.1007/s10640-005-4681-y text/html Access to full text is restricted to subscribers. Ben Groom bg3@soas.ac.uk Cameron Hepburn Phoebe Koundouri David Pearce
oai:RePEc:kap:enreec:v:39:y:2008:i:2:p:175-1882020-08-08RePEc:kap:enreec
article A new valuation question: analysis of and insights from interval open-ended data in contingent valuation Classic and interval open-ended (CIOE) question, Contingent valuation, Middle-censored data, Salmon, Valuation uncertainty, Willingness to pay, 2 2008 39 2 Environmental and Resource Economics 175 188 http://hdl.handle.net/10.1007/s10640-007-9102-y text/html Access to full text is restricted to subscribers. Cecilia Håkansson cecilia.hakansson@sekon.slu.se
oai:RePEc:kap:enreec:v:46:y:2010:i:3:p:359-3762020-08-08RePEc:kap:enreec
article Who Pays a Price on Carbon? Distributional incidence, Carbon tax, Tradable permits, Q52, Q58, H22, 3 2010 46 7 Environmental and Resource Economics 359 376 http://hdl.handle.net/10.1007/s10640-010-9345-x text/html Access to full text is restricted to subscribers. Corbett Grainger grainger@econ.ucsb.edu http://www.econ.ucsb.edu/~grainger Charles Kolstad kolstad@econ.ucsb.edu http://www.ckolstad.org
oai:RePEc:kap:enreec:v:25:y:2003:i:4:p:461-4762020-08-08RePEc:kap:enreec
article The Effect of Protest Votes on the Estimates of WTP for Use Values of Recreational Sites Contingent valuation studies are often characterized by a considerable number of protest responses, which may cause selectivity bias on the final estimates for WTP. Sample selection models can detect and – if necessary – correct selectivity bias. In economic applications where the relevant dependent variable is continuous, sample selection models are generally estimated using Heckman's 2-step method rather than the FIML estimator. Either method has its own drawback: computational complexity for the FIML method, susceptibility to collinearity problems for the 2-step method. Using data on valuation of forest resources for recreational use, we analyse the performance of the two estimators. In this application, given the presence of some collinearity, the FIML is preferred to the 2-step method. A procedure is outlined to deal with selectivity problems in similar settings. Copyright Kluwer Academic Publishers 2003 contingent valuation, FIML, protest responses, sample selection, 2-step method, 4 2003 25 8 Environmental and Resource Economics 461 476 http://hdl.handle.net/10.1023/A:1025098431440 text/html Access to full text is restricted to subscribers. Elisabetta Strazzera strazzera@unica.it Margarita Genius Riccardo Scarpa George Hutchinson
oai:RePEc:kap:enreec:v:7:y:1996:i:3:p:287-3052020-08-08RePEc:kap:enreec
article An efficient budget allocation policy for decentralisation of responsibility for site decontamination projects Selection and execution of site decontamination projects is often best left to local authorities, in accordance with the subsidiarity principle, even though the budget for such projects is made available through a central authority. In this paper we suggest a practical budget allocation policy which a central authority can employ to allocate budgets to local authorities, while still optimising the central authority's environmental objective function. The procedure is fully consistent with the principle of decentralisation of responsibility for selection and execution of projects, and requires a minimum information exchange between local and central levels. Despite the information asymmetry between local and central levels, incentive compatibility problems can be (partially) prevented by choosing an appropriate evaluation mechanism. At the same time, the procedure is computationally effective and efficient, and can guarantee a fair budget allocation, making it easy to implement and politically acceptable. Copyright Kluwer Academic Publishers 1996 Budget allocation, decentralisation, site decontamination, mathematical programming, Groves mechanism, 3 1996 7 4 Environmental & Resource Economics 287 305 http://hdl.handle.net/10.1007/BF00782150 text/html Access to full text is restricted to subscribers. Charles Corbett Frank Debets Luk Wassenhove
oai:RePEc:kap:enreec:v:39:y:2008:i:4:p:411-4322020-08-08RePEc:kap:enreec
article Optimal compliance with emission constraints: dynamic characteristics and the choice of technique Climate change mitigation, Dynamic characteristics, Emission targets, Environmental policy, Optimal structural change, Replacement of energy techniques, Static versus dynamic efficiency, Time-lagged dynamic optimization, Q48, Q53, C61, 4 2008 39 4 Environmental and Resource Economics 411 432 http://hdl.handle.net/10.1007/s10640-007-9133-4 text/html Access to full text is restricted to subscribers. Ralph Winkler mail@ralph-winkler.de
oai:RePEc:kap:enreec:v:50:y:2011:i:3:p:365-3872020-08-08RePEc:kap:enreec
article Making Benefit Transfers Work: Deriving and Testing Principles for Value Transfers for Similar and Dissimilar Sites Using a Case Study of the Non-Market Benefits of Water Quality Improvements Across Europe Non-market valuation, Stated preference, Benefit transfers, Transfer errors, Methodology, Water quality, Q51, Q15, Q26, Q24, Q28, 3 2011 50 11 Environmental and Resource Economics 365 387 http://hdl.handle.net/10.1007/s10640-011-9476-8 text/html Access to full text is restricted to subscribers. I. Bateman i.bateman@uea.ac.uk R. Brouwer S. Ferrini M. Schaafsma D. Barton A. Dubgaard B. Hasler S. Hime I. Liekens S. Navrud L. De Nocker R. Ščeponavičiūtė D. Semėnienė
oai:RePEc:kap:enreec:v:1:y:1991:i:2:p:195-2142020-08-08RePEc:kap:enreec
article Cooperative and noncooperative protection against transferable and filterable externalities Given self-protection from an undesirable environmental externality, we examine, under several conditions, the efficiency properties of cooperative and noncooperative behavior. We demonstrate that if self-protection can transfer the externality to another agent, then noncooperative behavior will lead to overprotection. If self-protection filters or dilutes the externality, then noncooperation leads to underprotection. In addition, overprotection will worsen if an agent with more relative power is allowed a first-mover advantage or if the damage function is elastic and transferability is uncertain. Finally, a reduction in uncertainty about transferability will accentuate overprotection if the damage function is inelastic. Our results suggest that coordination of protection activities among agents will enhance the overall gains from environmental policy in the European Single Internal Market of 1992. Coordination minimizes the costs of environmental protection, thereby reducing the public credibility of its foes. Copyright Kluwer Academic Publishers 1991 Self-protection, externality, transferability, 2 1991 1 6 Environmental & Resource Economics 195 214 http://hdl.handle.net/10.1007/BF00310018 text/html Access to full text is restricted to subscribers. Jason Shogren Thomas Crocker
oai:RePEc:kap:enreec:v:35:y:2006:i:1:p:19-392020-08-08RePEc:kap:enreec
article Environmental Taxes and First-Mover Advantages This paper studies whether governments prefer to be leaders or followers in environmental policies. To analyze this question I assume transboundary pollution and two countries that have to decide whether to set environmental taxes sequentially or simultaneously. When taxes are set sequentially an effect, denoted as the sequential setting effect, arises that raises the equilibrium taxes. I show that whether governments prefer to be leaders or followers in taxes depends on the degree to which environmental pollution spills over to trading partners. When this overspill is low enough, taxes are strategic complements and both the leader and the follower obtain greater welfare than under a simultaneous tax setting. However, the leader country obtains greater welfare than the follower. In this case, governments set taxes sequentially. When the degree to which environmental pollution spills over to trading partners is high enough, taxes are strategic substitutes and governments set taxes simultaneously. In this case, each government wants to avoid becoming the follower in taxes. Copyright Springer Science+Business Media, Inc. 2006 duopoly, environmental taxes, international trade, transboundary pollution, L13, Q28, 1 2006 35 9 Environmental and Resource Economics 19 39 http://hdl.handle.net/10.1007/s10640-006-9004-4 text/html Access to full text is restricted to subscribers. Juan Carlos Bárcena-Ruiz juancarlos.barcena@ehu.es
oai:RePEc:kap:enreec:v:37:y:2007:i:1:p:1-62020-08-08RePEc:kap:enreec
article Introduction to the special issue in honour of David W. Pearce: environmental economics and policy 1 2007 37 5 Environmental and Resource Economics 1 6 http://hdl.handle.net/10.1007/s10640-007-9115-6 text/html Access to full text is restricted to subscribers. Ian Bateman i.bateman@uea.ac.uk Edward Barbier ebarbier@uwyo.edu Scott Barrett sbarrett@jhu.edu
oai:RePEc:kap:enreec:v:60:y:2015:i:2:p:215-2422020-08-08RePEc:kap:enreec
article An Econometric Analysis of Atmospheric Pollution, Environmental Disparities and Mortality Rates This paper presents the first study of environmental inequality related to health in France on the national scale. Through econometric analysis based on panel data from 2000 to 2004, at the level of France’s departments (administrative areas similar in size to counties in the United Kingdom or the United States.), I investigate the total mortality rate in relation to socioeconomic status and air pollution. The concentration level of $$\hbox {NO}_{2}, \hbox {O}_{3}$$ NO 2 , O 3 and $$\hbox {PM}_{10}$$ PM 10 are estimated by spatial interpolation from local observations made by a network of monitoring stations. I found a positive and significant relationship between $$\hbox {NO}_{2}$$ NO 2 levels and the mortality rate, at mean levels below the current standard, with a greater relative risk for women. Moreover I observed disparities in health related to income among French departments. These results not only confirm the existence of a relationship between current air pollution levels and mortality but also raise questions about environmental policy implications in France. Copyright Springer Science+Business Media Dordrecht 2015 Air pollution, Environmental economics, Environmental impact, Inequality, Mortality rate, Spatial autocorrelation, 2 2015 60 2 Environmental and Resource Economics 215 242 http://hdl.handle.net/10.1007/s10640-014-9765-0 text/html Access to full text is restricted to subscribers. Emmanuelle Lavaine emmanuelle.lavaine@univ-paris1.fr
oai:RePEc:kap:enreec:v:46:y:2010:i:2:p:189-2062020-08-08RePEc:kap:enreec
article Behavioural Economics, Hyperbolic Discounting and Environmental Policy Hyperbolic discounting, Resource economics, Time inconsistency, Fishery, Climate change, Preference reversal, 2 2010 46 6 Environmental and Resource Economics 189 206 http://hdl.handle.net/10.1007/s10640-010-9354-9 text/html Access to full text is restricted to subscribers. Cameron Hepburn cameron.hepburn@new.ox.ac.uk Stephen Duncan stephen.duncan@eng.ox.ac.uk Antonis Papachristodoulou antonis@eng.ox.ac.uk
oai:RePEc:kap:enreec:v:43:y:2009:i:2:p:137-1602020-08-08RePEc:kap:enreec
article Are There Income Effects on Global Willingness to Pay for Biodiversity Conservation? Meta-analysis, Income effects, Contingent valuation, Existence values, Environmental Kuznets Curve, 2 2009 43 6 Environmental and Resource Economics 137 160 http://hdl.handle.net/10.1007/s10640-008-9226-8 text/html Access to full text is restricted to subscribers. Jette Jacobsen jbj@life.ku.dk Nick Hanley n.d.hanley@stir.ac.uk
oai:RePEc:kap:enreec:v:40:y:2008:i:4:p:611-6112020-08-08RePEc:kap:enreec
article Do We Really Care About Biodiversity? 4 2008 40 8 Environmental and Resource Economics 611 611 http://hdl.handle.net/10.1007/s10640-007-9161-0 text/html Access to full text is restricted to subscribers. David Pearce
oai:RePEc:kap:enreec:v:6:y:1995:i:2:p:99-1182020-08-08RePEc:kap:enreec
article Institutions, governance and incentives in common property regimes for African rangelands The general distinctions between open access, state property, common property and private property are now well established in the academic literature. When applied to African rangelands, however, common property admits a wide variety of resource management regimes. To formulate effective policies it is necessary to understand the structure and operations of particular regimes. In this paper we discuss three examples of common property regimes, two from the southern African nation of Lesotho and one from the west African nation of Senegal, to illustrate some of the key characteristics of common property regimes. In particular, it is important to understand the structure of governance, the types of institutions that govern behavior, and the compatibility between governance, institutions and individual incentives. A common property regime can only be effective if its institutions are compatible with the structure of governance. The extent of its effectiveness also depends upon the incentives and expectations of individuals expected to enforce the rules of the institutions or comply with their terms. At present, most African governments lack the organizational capacity and political will necessary to implement state property regimes, official regulations on resource use, or individual property rights for rangelands resources. In many cases it is more appropriate for governments to define and enforce group rights to particular resources, then help to establish conditions in which internal group dynamics yield efficient resource management outcomes. Copyright Kluwer Academic Publishers 1995 Common property, property rights, rangelands, Africa, Lesotho, Senegal, 2 1995 6 9 Environmental & Resource Economics 99 118 http://hdl.handle.net/10.1007/BF00691679 text/html Access to full text is restricted to subscribers. Brent Swallow Daniel Bromley
oai:RePEc:kap:enreec:v:45:y:2010:i:3:p:429-4442020-08-08RePEc:kap:enreec
article Measuring the Benefits of Neighbourhood Park Amenities: Application and Comparison of Spatial Hedonic Approaches Hedonic approach, Kriging, Spatial autocorrelation, Spatial regression models, Urban parks, 3 2010 45 3 Environmental and Resource Economics 429 444 http://hdl.handle.net/10.1007/s10640-009-9321-5 text/html Access to full text is restricted to subscribers. Tadao Hoshino hoshino.t.ai@m.titech.ac.jp Koichi Kuriyama kkuri@kais.kyoto-u.ac.jp http://homepage1.nifty.com/kkuri/index-e.html
oai:RePEc:kap:enreec:v:54:y:2013:i:2:p:261-2822020-08-08RePEc:kap:enreec
article Exchanging Goods and Damages: The Role of Trade on the Distribution of Climate Change Costs The impacts of climate change vary significantly across world regions. Whereas tropical and subtropical regions are expected to suffer severely from the effects of climate change, the impacts in northern latitudes should remain relatively moderate. However, regions are not self-sufficient, and the costs of climate change can spread across regions through international trade. I study the international spillover of climate impacts within a regionalised, climate-sensitive, dynamic computable general equilibrium model of the world economy. Using data from a global climate model shows that the world regions face welfare losses between 0.6 and 2.1 % due to climate change. I also show that climate change affects terms of trade and sectoral competitiveness. By means of a decomposition method, the extent of spillover impacts through international trade can be identified. Spillover impacts significantly affect, either positively or negatively, the total costs of climate change for a region. For regions with low exposure to climate change and high adaptive capacities, spillover effects are responsible for a 1/6 of the total cost of climate change. Copyright Springer Science+Business Media B.V. 2013 Climate change, Decomposition of general equilibrium effects, International trade, Multi-regional dynamic CGE model, 2 2013 54 2 Environmental and Resource Economics 261 282 http://hdl.handle.net/10.1007/s10640-012-9593-z text/html Access to full text is restricted to subscribers. Oliver Schenker schenker@zew.de
oai:RePEc:kap:enreec:v:8:y:1996:i:4:p:449-4592020-08-08RePEc:kap:enreec
article Fiscal federalism approach for controlling global environmental pollution This paper finds that optimal international carbon taxes are country specific and we can decompose a tax on a domestically produced carbon-intensive commodity into a revenue tax, a tax to control local atmospheric pollution and an international carbon tax. It shows that an institutional arrangement for the world economy similar to the fiscal federalism in the federal countries can be useful to internalize the global externalities of atmospheric pollution. Copyright Kluwer Academic Publishers 1996 global externalities, fiscal federalism, international carbon tax, national pollution taxes, 4 1996 8 12 Environmental & Resource Economics 449 459 http://hdl.handle.net/10.1007/BF00357413 text/html Access to full text is restricted to subscribers. M. Murty
oai:RePEc:kap:enreec:v:48:y:2011:i:2:p:219-2422020-08-08RePEc:kap:enreec
article The Impact of Land-Use Change on Ecosystem Services, Biodiversity and Returns to Landowners: A Case Study in the State of Minnesota Ecosystem services, Biodiversity, Land use, Private returns to landowners, Net social benefits, Tradeoffs, 2 2011 48 2 Environmental and Resource Economics 219 242 http://hdl.handle.net/10.1007/s10640-010-9407-0 text/html Access to full text is restricted to subscribers. Stephen Polasky polasky@umn.edu Erik Nelson Derric Pennington Kris Johnson
oai:RePEc:kap:enreec:v:58:y:2014:i:3:p:463-4722020-08-08RePEc:kap:enreec
article Implications of a Discard Ban in Multispecies Quota Fisheries We present an analysis of quota regulation and discarding in multispecies fisheries, explicitly taking into account the costs of non-compliance with quotas and a possible discard ban, as well as the costs of selective fishing (avoidance effort). We examine the impact of a discard ban on vessels’ profit maximising behaviour, in particular where species quotas are not set in proportion to their availability on the fishing grounds, considering both non-tradeable quotas and ITQs. We show the interdependence between penalty rates for both discards and over-quota landings in determining quota market outcomes. We find that quota prices are sensitive to penalty rates and to the presence of restrictive quotas for “choke” species. Copyright Springer Science+Business Media Dordrecht 2014 Discarding, Quota management, ITQs, Compliance, 3 2014 58 7 Environmental and Resource Economics 463 472 http://hdl.handle.net/10.1007/s10640-013-9716-1 text/html Access to full text is restricted to subscribers. Aaron Hatcher aaron.hatcher@port.ac.uk
oai:RePEc:kap:enreec:v:41:y:2008:i:2:p:189-2072020-08-08RePEc:kap:enreec
article Cost Structure and Capacity Utilisation in Multi-product Industries: An Application to the Basque Trawl Industry Cost structure, Capacity utilisation, Input and output regulation, 2 2008 41 10 Environmental and Resource Economics 189 207 http://hdl.handle.net/10.1007/s10640-007-9187-3 text/html Access to full text is restricted to subscribers. Itziar Lazkano ilazcano@ucalgary.ca
oai:RePEc:kap:enreec:v:5:y:1995:i:4:p:333-3522020-08-08RePEc:kap:enreec
article The exploitation of fossil fuels under the threat of global warming and carbon taxes: A dynamic game approach This paper considers efficient and monopolistic extraction of non-renewable (energy) resources when the resource consumption leads simultaneously to a stock externality (‘global warming’). The case of monopolistic supply leads to a dynamic game between cartelised producers and a consumers' government. For this game, we compute linear Markov perfect strategies that are characterized by preemption of the tax at the wellhead (when compared with the open loop solution). Unfortunately, the general, asymmetric two-state variable model does not allow for an explicit analytical solution. Therefore, a simplified version with one state variable (neglecting depreciation of the stock of the pollutant) is studied and a numerical example is presented. It turns out that the simplified and analytically solved framework provides a good approximation of the initial phase of the transient behaviour but not of the long run. Copyright Kluwer Academic Publishers 1995 4 1995 5 6 Environmental & Resource Economics 333 352 http://hdl.handle.net/10.1007/BF00691573 text/html Access to full text is restricted to subscribers. Franz Wirl
oai:RePEc:kap:enreec:v:60:y:2015:i:4:p:607-6312020-08-08RePEc:kap:enreec
article International Ecological Footprint Inequality: A Methodological Review and Some Results Scarcities of environmental services are no longer merely a remote hypothesis. Consequently, analysis of their inequalities between nations becomes of paramount importance for the achievement of sustainability. This paper aims, on the one hand, at revising methodological aspects of the inequality measurement of certain environmental data and, on the other, at extending the scarce empirical evidence relating to the international distribution of Ecological Footprint (EF). Most of the techniques currently important in the literature are revised and then tested on EF data with interesting results. We consider the underlying properties of different inequality indices. Those indices which fit best with environmental inequality measurements are CV $$^{2}$$ 2 and GE(2) because of their neutrality property. Subgroup and Source decompositions are also discussed from a methodological perspective. Empirically, this paper contributes to the environmental inequality measurement of EF: this inequality has been quite stable. Subgroup decomposition by using exogenous country groups (World Bank classification) conclude that between group inequality explains almost the totality of international EF-inequality. Source decomposition warns of the dangers of confining CO $$_2$$ 2 emissions reduction to crop-based energies because of the implications for basic needs satisfaction. Copyright Springer Science+Business Media Dordrecht 2015 Ecological Footprint, International environmetal distribution, Inequality measurement, Inequality decomposition, 4 2015 60 4 Environmental and Resource Economics 607 631 http://hdl.handle.net/10.1007/s10640-014-9784-x text/html Access to full text is restricted to subscribers. Jordi Teixidó-Figueras jordijosep.teixido@urv.cat Juan Duro
oai:RePEc:kap:enreec:v:34:y:2006:i:1:p:91-1152020-08-08RePEc:kap:enreec
article Using Angler Characteristics and Attitudinal Data to Identify Environmental Preference Classes: A Latent-Class Model A latent-class model of environmental preference groups is developed and estimated with only the answers to a set of attitudinal questions. Economists do not typically use this type of data in estimation. Group membership is latent/unobserved. The intent is to identify and characterize heterogeneity in the preferences for environmental amenities in terms of a small number of preference groups. The application is to preferences over the fishing characteristics of Green Bay. Anglers answered a number of attitudinal questions, including the importance of boat fees, species catch rates, and fish consumption advisories on site choice. The results suggest that Green Bay anglers separate into a small number of distinct classes with varying preferences and willingness to pay for a PCB-free Green Bay. The probability that an angler belongs to each class is estimated as function of observable characteristics of the individual. Estimation is with the expectation–maximization (E–M) algorithm, a technique new to environmental economics that can be used to do maximum-likelihood estimation with incomplete information. As explained, a latent-class model estimated with attitudinal data can be melded with a latent-class choice model. Copyright Springer 2006 attitudinal data, E–M algorithm, latent-class attitudinal model, latent-class joint model, 1 2006 34 05 Environmental and Resource Economics 91 115 http://hdl.handle.net/10.1007/s10640-005-3794-7 text/html Access to full text is restricted to subscribers. Edward Morey Edward.Morey@colorado.edu Jennifer Thacher William Breffle
oai:RePEc:kap:enreec:v:13:y:1999:i:3:p:289-3082020-08-08RePEc:kap:enreec
article Environmental Tax Reform and Government Expenditure In a simple model of production with an imported polluting resource and involuntary unemployment we consider the effects of energy taxes, holding the real wage constant, under differing levels of government expenditure and externalities. Simulations reveal conflict between the goals of net welfare, employment and profitability over much of the relevant parameter range, thus extending the usual discussion of multiple dividends. However, potential net welfare and employment gains are substantial for plausible parameters. The optimal energy tax declines as government expenditure rises and is less than the Pigovian tax for plausible externalities. Copyright Kluwer Academic Publishers 1999 optimal energy taxation, general equilibrium, externalities, fiscal policy, government expenditure, energy, unemployment, 3 1999 13 4 Environmental and Resource Economics 289 308 http://hdl.handle.net/10.1023/A:1008298827112 text/html Access to full text is restricted to subscribers. Shane Bonetti Felix FitzRoy
oai:RePEc:kap:enreec:v:14:y:1999:i:3:p:431-4402020-08-08RePEc:kap:enreec
article A Green Energy Plan for Denmark Several political regulation instruments -- such as CO 2 taxes -- have been suggested to implement CO 2 reduction policies. But normally the cost of implementing CO 2 reduction policies is considered to be a threat to both economic growth and employment. But to some extent, strategies can be developed which implement CO 2 reduction goals by creating jobs and such strategies could help economic growth. This note presents the main results from a research project, in the Department of Development and Planning at Aalborg University. More detailed information of the full study is given in (Lund 1996: 2) and (Lund 1997). The research project has had the primary purpose of determining the consequences for employment and the need for foreign exchange in the investments in the different types of energy plants in Denmark. From this information it has been possible to develop and calculate the consequences of various energy strategies, which seek to avoid the conflict between environment, employment and economic growth. One example of such a strategy is called the Green Energy Plan. The Green Energy Plan, was published by the General Workers' Union and used as an input to the public debate on the future of energy in Denmark in the spring of 1996 (Lund 1996: 2). The official Danish energy plan Energy 21 (Danish Ministry of Environment and Energy 1996) was adopted soon after the public debate. Copyright Kluwer Academic Publishers 1999 energy planning, job creation, feasibility studies, 3 1999 14 10 Environmental and Resource Economics 431 440 http://hdl.handle.net/10.1023/A:1008344032223 text/html Access to full text is restricted to subscribers. Henrik Lund lund@i4.auc.dk
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article The Ethics of Intertemporal Distribution in a Warming Planet Climate change, Global warming, Intertemporal optimization, Social discount rate, Discounted utilitarianism, Rawlsian justice, Sustainability, D63, D90, H43, 3 2011 48 3 Environmental and Resource Economics 363 390 http://hdl.handle.net/10.1007/s10640-010-9414-1 text/html Access to full text is restricted to subscribers. John Roemer john.roemer@yale.edu
oai:RePEc:kap:enreec:v:30:y:2005:i:2:p:221-2382020-08-08RePEc:kap:enreec
article Recycling and Waste Diversion Effectiveness: Evidence from Canada In this paper, we investigate the relationship between recycling policy options and recycling behavior to study the most effective methods of diverting post-consumer waste from landfills. We employ data from a unique, micro-data set collected from households in communities across Ontario, Canada. We estimate the relationships between several commonly recycled materials (newsprint, glass, plastics, aluminum cans, tin cans, cardboard, and toxic chemicals) and individual household characteristics, recycling program attributes, and garbage collection financing methods. We find that user fees on garbage collection have significant impacts on recycling levels for all materials except toxic chemicals, and mandatory recycling programs on particular items have significant effects on recycling for almost all materials. Limits on the amount of garbage that can be placed at the curb, and providing free units under user fee systems, however, generally have a negligible or detrimental impact on recycling. Copyright Springer 2005 environmental policy, household waste, ordered probit, recycling, user fees, 2 2005 30 02 Environmental & Resource Economics 221 238 http://hdl.handle.net/10.1007/s10640-004-1518-z text/html Access to full text is restricted to subscribers. Ida Ferrara Paul Missios pmissios@arts.ryerson.ca
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article Project Mechanisms and Technology Diffusion in Climate Policy Climate policy, Technology diffusion, Kyoto Protocol, Clean development mechanism, Emissions trading, H87, O33, Q55, Q54, 3 2011 49 7 Environmental and Resource Economics 405 423 http://hdl.handle.net/10.1007/s10640-010-9439-5 text/html Access to full text is restricted to subscribers. Matthieu Glachant glachant@ensmp.fr Yann Ménière meniere@ensmp.fr
oai:RePEc:kap:enreec:v:38:y:2007:i:4:p:433-4462020-08-08RePEc:kap:enreec
article Productivity and environmental regulation: the effect of the nitrates directive in the French pig sector Environmental costs, Porter Hypothesis, Environmental efficiency, Productive efficiency, Directional distance function, Malmquist–Luenberger index, C60, D21, D24, D62, Q20, 4 2007 38 12 Environmental and Resource Economics 433 446 http://hdl.handle.net/10.1007/s10640-007-9086-7 text/html Access to full text is restricted to subscribers. Isabelle Piot-Lepetit Isabelle.Piot@rennes.inra.fr Monique Moing
oai:RePEc:kap:enreec:v:37:y:2007:i:1:p:253-2692020-08-08RePEc:kap:enreec
article Limits to CBA in UK and European environmental policy: retrospects and future prospects This paper reviews the contemporary debate and the now long standing role of CBA in UK and European environmental policy appraisal (EPA) and looks forward to possible future applications. The position taken is that despite its limitations CBA still has an important part to play in EPA. However, with the increasingly ‘contested’ nature of environmental and related public policies and outcomes, its role will become less prescriptive and its findings more constrained by social justice and ethical imperatives. Future CBA is more likely to continue to flourish as a component in a wider policy analysis and decision support system. Whatever decision support system is eventually adopted, its value will be judged on how well it aids real policymakers operating iteratively in the non-linear real world political economy. Copyright Springer Science+Business Media, Inc. 2007 Cost–benefit analysis, Environmental policy, Valuation, 1 2007 37 5 Environmental and Resource Economics 253 269 http://hdl.handle.net/10.1007/s10640-007-9119-2 text/html Access to full text is restricted to subscribers. R. Turner r.k.turner@uea.ac.uk
oai:RePEc:kap:enreec:v:4:y:1994:i:6:p:535-5442020-08-08RePEc:kap:enreec
article Efficient introduction of Pigovian taxes This paper considers the dynamics of introducing pollution taxes when firms have to invest into abatement facilities. This accumulation of abatement capital, however, proceeds sluggishly. Therefore, actual policy proposals of pollution taxes consider a phased introduction. This paper considers the normative aspects of such a policy. More precisely, it proves that pollution taxes should be introduced radically rather than gradually. Copyright Kluwer Academic Publishers 1994 Pollution tax, Pigovian formula, abatement devices, 6 1994 4 12 Environmental & Resource Economics 535 544 http://hdl.handle.net/10.1007/BF00693044 text/html Access to full text is restricted to subscribers. Franz Wirl
oai:RePEc:kap:enreec:v:31:y:2005:i:1:p:117-1192020-08-08RePEc:kap:enreec
article Book Review: Anthony Heyes, ed. 2001. The Law and Economics of the Environment. Edward Elgar, Cheltenham, UK and Northampton, MA, USA. xvi + 409 pp. £74.95 (US $130.00). ISBN 1-84064-339-0. 1 2005 31 05 Environmental & Resource Economics 117 119 http://hdl.handle.net/10.1007/s10640-004-6575-9 text/html Access to full text is restricted to subscribers. Sean Cash scash@ualberta.ca
oai:RePEc:kap:enreec:v:22:y:2002:i:1:p:99-1322020-08-08RePEc:kap:enreec
article Implementing Electricity Restructuring Electricity is one of the last U.S.industries in which competition is replacingregulation. We briefly review the technologyfor producing and delivering power, the historyof electricity policy, and recent state andinternational experience. We then outline themajor questions facing policymakers as theydecide whether, when, and how to implementrestructuring. We conclude with some thoughtson the California electricity crisis and otherpolitical controversies. Although theCalifornia experience has come to define whatit means for electricity markets to fail, mostof the problems it raised are among those weknow how to solve or prevent. The stillunresolved make-or-break issue remains whetherthe cooperation necessary to maintainreliability is compatible with the degree ofcompetition necessary to bring about greaterefficiency and lower prices. Copyright Kluwer Academic Publishers 2002 competition, deregulation, electricity restructuring, regulation, stranded cost, 1 2002 22 6 Environmental and Resource Economics 99 132 http://hdl.handle.net/10.1023/A:1015579618835 text/html Access to full text is restricted to subscribers. Timothy Brennan Karen Palmer palmer@rff.org Salvador Martinez
oai:RePEc:kap:enreec:v:47:y:2010:i:4:p:549-5652020-08-08RePEc:kap:enreec
article Environmental Tax Reform and Growth: Income Tax Cuts or Profits Tax Reduction Environmental policy, Environmental tax reform, Endogenous growth, 4 2010 47 12 Environmental and Resource Economics 549 565 http://hdl.handle.net/10.1007/s10640-010-9392-3 text/html Access to full text is restricted to subscribers. Minoru Nakada mnnakada@cc.nagoya-u.ac.jp
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article Erratum to: Taxation of a Polluting Non-renewable Resource in the Heterogeneous World 2 2011 49 6 Environmental and Resource Economics 309 309 http://hdl.handle.net/10.1007/s10640-011-9459-9 text/html Access to full text is restricted to subscribers. Julien Daubanes jdaubanes@ethz.ch André Grimaud
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article Output sharing in partnerships as a common pool resource management instrument Many economic environments are susceptible to either free-riding or overuse. Common pool resources (CPRs) fall in the latter category. Equally sharing the output of a CPR in partnerships introduces a free-riding incentive that may offset overuse. Socially optimal harvesting can be induced by dividing the set of resource users into a number of partnerships in such a way that each resource users’ tendency to over-harvest from the resource is exactly offset by his or her tendency to free-ride on the contributions of others. We conduct a laboratory experiment to assess the performance of this partnership solution by introducing equal-sharing subgroups of size one, four and six into a twelve-person CPR environment. Group assignment is either unchanging throughout a 15 period session or randomly mixed each decision round. Group size significantly affects aggregate effort, while group assignment makes no significant difference. The distribution of total payoffs is more equitable for randomly mixed groups. Implications of our results for voluntary and centralized implementations of the partnership solution are discussed. Copyright Springer Science+Business Media, Inc. 2007 Common pool resources, Partners and strangers, Experimental economics, Collective action, Natural resource management, Q20, C91, D70, C92, 4 2007 37 8 Environmental and Resource Economics 697 711 http://hdl.handle.net/10.1007/s10640-006-9062-7 text/html Access to full text is restricted to subscribers. Stephan Schott sschott@connect.carleton.ca Neil Buckley nbuckley@yorku.ca Stuart Mestelman mestelma@mcmaster.ca R. Muller mullera@mcmaster.ca
oai:RePEc:kap:enreec:v:65:y:2016:i:3:d:10.1007_s10640-016-0042-22020-08-08RePEc:kap:enreec
article Climatic Tipping Points and Optimal Fossil-Fuel Use Abstract The economics of climate change is characterized by many uncertainties regarding, for instance, climate dynamics, economic damages and potentially irreversible climate catastrophes. Using an optimal growth model of a fossil-fuel-driven economy subject to climate externalities and potentially irreversible climatic regime shifts, this paper contributes to the understanding of how the risk of such events impacts on optimal fossil-fuel use, carbon taxes and fossil-fuel prices over time. We show that in excess, to an increase in the expected present value of marginal damages and an increase in the probability of triggering the event, there also exists a third opposing effect. This effect comes from the fall in value of remaining fossil-fuel reserve, which results from the potential regime shift which may (or may not) occur sometime in the future, and implies that optimal fossil-fuel policy shifts towards using more resources early on. This effect is related to the idea of the green paradox. We prove the existence of this effect and show under which circumstances it can become quantitatively important. Numerically, the green-paradox effect seems to be somewhat smaller than, but comparable in size to, the increase in expected marginal damages. In general, our findings highlight the importance of considering the supply-side impacts on climate policy in response to catastrophic climate events. Catastrophic events, Climate change, Economic growth, Hazard rate 3 2016 65 11 3 Environmental and Resource Economics 541 571 http://link.springer.com/10.1007/s10640-016-0042-2 text/html Abstract Gustav Engström johan.gars@kva.se The Royal Swedish Academy of Sciences Johan Gars johan.gars@beijer.kva.se The Royal Swedish Academy of Sciences
oai:RePEc:kap:enreec:v:50:y:2011:i:2:p:157-1742020-08-08RePEc:kap:enreec
article Complexities of Decentralization in a Globalizing World Bargaining, Decentralization, Globalization, Natural resources, Poverty, Property rights, Self-enforcement, 2 2011 50 10 Environmental and Resource Economics 157 174 http://hdl.handle.net/10.1007/s10640-011-9466-x text/html Access to full text is restricted to subscribers. Stefanie Engel stefanie.engel@env.ethz.ch Charles Palmer c.palmer1@lse.ac.uk
oai:RePEc:kap:enreec:v:39:y:2008:i:3:p:331-3562020-08-08RePEc:kap:enreec
article Estimating a socially optimal water price for irrigation versus an environmentally optimal water price through the use of Geographical Information Systems and Social Accounting Matrices Externalities, Input–Output models, GIS, Social Accounting Matrix (SAM), Water price, 3 2008 39 3 Environmental and Resource Economics 331 356 http://hdl.handle.net/10.1007/s10640-007-9129-0 text/html Access to full text is restricted to subscribers. Esteban Castellano Pablo Anguita Pablo.martinezdeanguita@urjc.es José Elorrieta Marcelino Pellitero ecz@tragsatec.es Concepción Rey
oai:RePEc:kap:enreec:v:29:y:2004:i:3:p:361-3742020-08-08RePEc:kap:enreec
article Using Choice Experiments to Value the Natura 2000 Nature Conservation Programs in Finland This paper is concerned with the preferences of the Finnish households for a controversial nature conservation program – the European Union's Natura 2000 Network. Since the program was mainly based on biological considerations, it met strong public opinions from different interest groups in Finland. Using the choice experimental method, we attempt to estimate the values that the Finnish households would place on different preservation levels. It is found that the mean willingness to accept for a decrease in the nature preservation area is much greater than the mean willingness to pay for an increase by the same amount. Also, the marginal willingness to pay becomes zero after an initial increase in the natural preservation area, which is consistent with our earlier findings in a binary choice valuation study. Policy implications of these results are also discussed in relation to different decision criteria. Copyright Kluwer Academic Publishers 2004 choice experiment, nature conservation, willingness to pay, 3 2004 29 11 Environmental and Resource Economics 361 374 http://hdl.handle.net/10.1007/s10640-004-9455-4 text/html Access to full text is restricted to subscribers. Chuan-zhong Li Jari Kuuluvainen Eija Pouta Mika Rekola Olli Tahvonen
oai:RePEc:kap:enreec:v:59:y:2014:i:1:p:39-632020-08-08RePEc:kap:enreec
article Discounting the Distant Future: An Experimental Investigation We use a laboratory experiment to elicit discount rates over a 20-year time horizon using government savings bonds as a payment vehicle. When using a constant (exponential) discount rate function, we find an implied average discount rate of 4.9 %, which is much lower than has been found in previous experimental studies that used time horizons of days or months. However, we also find strong support for non-constant, declining discount rates for longer time horizons, with an extrapolated implied annual discount rate approaching 0.5 % in 100 years. There is heterogeneity in discount rates and risk preferences in that people with more optimistic beliefs about technological progress have higher discount rates. These findings contribute to the debate over the appropriate discount rate to use in comparing the long-term benefits of climate change mitigation to the more immediate costs. Copyright Springer Science+Business Media Dordrecht 2014 Discount rate, Hyperbolic discount rates, Time inconsistent preference, Climate change, Experiment, 1 2014 59 9 Environmental and Resource Economics 39 63 http://hdl.handle.net/10.1007/s10640-013-9717-0 text/html Access to full text is restricted to subscribers. Therese Grijalva Jayson Lusk jayson.lusk@okstate.edu W. Shaw
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article ‘Adopt a Hypothetical Pup’: A Count Data Approach to the Valuation of Wildlife The willingness to pay (WTP) for a coyote conservation program is estimated using a novel payment-vehicle, based on how many ‚problem’ coyotes respondents would be willing to sponsor for a year. This hypothetical scenario mimics an increasingly popular type of actual market. Data from a phone survey conducted in Prince Edward Island are analyzed using count data models that consider different processes explaining zero responses and the level of positive responses. This is particularly important in the case of coyotes, often regarded as an economic bad. Estimates of WTP per coyote per year around $18–$22 and annual WTP per contributor of about $46–$57 are obtained. Copyright Springer Science+Business Media, Inc. 2007 contingent valuation, count data, coyotes, wildlife, willingness to pay, zero-inflated count data models, Q20, Q26, 2 2007 37 6 Environmental and Resource Economics 335 360 http://hdl.handle.net/10.1007/s10640-006-9051-x text/html Access to full text is restricted to subscribers. R. Martínez-Espiñeira rmespi@stfx.ca
oai:RePEc:kap:enreec:v:51:y:2012:i:1:p:43-592020-08-08RePEc:kap:enreec
article Attribute Framing in Choice Experiments: How Do Attribute Level Descriptions Affect Value Estimates? Attribute description, Australia, Choice modelling, Framing effects, Non-market valuation, Stated preferences, Survey development, 1 2012 51 1 Environmental and Resource Economics 43 59 http://hdl.handle.net/10.1007/s10640-011-9487-5 text/html Access to full text is restricted to subscribers. Marit Kragt marit.kragt@uwa.edu.au Jeffrey Bennett
oai:RePEc:kap:enreec:v:40:y:2008:i:3:p:445-4652020-08-08RePEc:kap:enreec
article The Clean Development Mechanism’s Low-hanging Fruit Problem: When Might it Arise, and How Might it be Solved? Clean Development Mechanism (CDM), Climate change, International cooperation, Kyoto Protocol, Low-hanging fruit problem, 3 2008 40 7 Environmental and Resource Economics 445 465 http://hdl.handle.net/10.1007/s10640-007-9164-x text/html Access to full text is restricted to subscribers. Urvashi Narain narain@rff.org Klaas Veld klaas@uwyo.edu
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article Christoph Bohringer, Michael Finus and Carsten Vogt (eds.) 2002. Controlling Global Warming: Perspectives from Economics, Game Theory and Public Choice 2 2004 29 10 Environmental and Resource Economics 254 256 http://hdl.handle.net/10.1023/B:EARE.0000044703.18799.15 text/html Access to full text is restricted to subscribers. Ram Ranjan rranjan@ers.usda.gov
oai:RePEc:kap:enreec:v:53:y:2012:i:1:p:25-592020-08-08RePEc:kap:enreec
article Endogenous Fishery Management in a Stochastic Model: Why Do Fishery Agencies Use TACs Along with Fishing Periods? This paper seeks to explain the circumstances under which using total allowable catch (TAC) as an instrument to manage a fishery along with fishing periods may be of interest from a regulatory point of view. The deterministic analysis by Homans and Wilen (J Environ Econ Manag 32:1–21, 1997 ) and Anderson (Ann Oper Res 94:231–257, 2000 ) is thus extended to a stochastic scenario where the resource cannot be measured accurately. The resulting model is solved numerically to find the optimal control rules in the Iberian sardine stock. Three relevant conclusions can be highlighted from simulations: first, the greater the uncertainty regarding the state of the stock, the lower the probability of the fishery being closed before the end of the fishing period. Second, the use of TACs as a management instrument in fisheries that are already regulated by fishing periods leads to: (i) an increase in the optimal season length and harvests, especially for medium and high numbers of licences; (ii) improved biological and economic variables when the fleet is large; and (iii) extinction risk for the resource being eliminated. Third, the regulator would rather select the number of licences than restrict the season length. Copyright Springer Science+Business Media B.V. 2012 Endogenous optimization fisheries models, Fishery management under uncertainty, 91B76, 92D25, 1 2012 53 9 Environmental and Resource Economics 25 59 http://hdl.handle.net/10.1007/s10640-012-9546-6 text/html Access to full text is restricted to subscribers. José Da Rocha jmrocha@uvigo.es María Gutiérrez mariajose.gutierrez@ehu.es
oai:RePEc:kap:enreec:v:28:y:2004:i:3:p:273-2992020-08-08RePEc:kap:enreec
article Optimal Recycling System Design: With an Application to Sophisticated Packaging Tools This paper deals with the mathematical analysis of product-process chains, aimed at the proper design of recycling systems. A modelling method is presented that can be applied to various chains. It is applied to a case in which a producer of sophisticated packaging tools requires insight into the many options of the design of a reuse/recycling chain. This is due to expectations for the near future that are related to extended product responsibility and the enforcement of recycling. Depending on the weight of different criteria and the choice of systems boundaries, optimal solutions can be selected. It turns out that the modelling method acts as a useful decision tool. A major bottleneck is the availability of data from suppliers and customers. Copyright Kluwer Academic Publishers 2004 decision support, life cycle chain, mathematical programming, recycling, reuse, 3 2004 28 7 Environmental and Resource Economics 273 299 http://hdl.handle.net/10.1023/B:EARE.0000031055.71080.46 text/html Access to full text is restricted to subscribers. A.J.D. Lambert a.j.d.lambert@tm.tue.nl H.M. Boelaarts M.A.M. Splinter
oai:RePEc:kap:enreec:v:48:y:2011:i:4:p:587-6082020-08-08RePEc:kap:enreec
article Trade, GMOs and Environmental Risk: Are Current Policies Likely to Improve Welfare? GMOs, Product-labeling, Product differentiation, Quality competition, Trade policy, Welfare, 4 2011 48 4 Environmental and Resource Economics 587 608 http://hdl.handle.net/10.1007/s10640-010-9405-2 text/html Access to full text is restricted to subscribers. H. Eggert Hakan.Eggert@economics.gu.se M. Greaker
oai:RePEc:kap:enreec:v:53:y:2012:i:1:p:117-1362020-08-08RePEc:kap:enreec
article Farm Acreage Shocks and Crop Prices: An SVAR Approach to Understanding the Impacts of Biofuels The last 10 years have seen tremendous expansion in biofuels production, particularly in corn ethanol in the United States, at the same time that commodity prices (e.g., corn) have experienced significant spikes. While supporters claim that biofuels are renewable and carbon-friendly, concerns have been raised about their impacts on land use and food prices. This paper analyzes how US crop prices have responded to shocks in acreage supply; these shocks can be thought of as a shock to the residual supply of corn for food. Using a structural vector auto-regression framework, we examine shocks to a crop’s own acreage and to total cropland. This allows us to estimate the effect of dedicating cropland or non-crop farmlands to biofuels feedstock production. A negative shock in own acreage leads to an increase in price for soybeans and corn. Our calculations show that increased corn ethanol production during the boom production year 2006/2007 explains approximately 27% of the experienced corn price rise. Copyright Springer Science+Business Media B.V. 2012 Biofuels, Crop acreage, Agricultural markets, Structural Vector Auto-Regression (SVAR), 1 2012 53 9 Environmental and Resource Economics 117 136 http://hdl.handle.net/10.1007/s10640-012-9550-x text/html Access to full text is restricted to subscribers. Catherine Hausman calmirall@berkeley.edu Maximilian Auffhammer Peter Berck
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article Explorations in the Environment–Development Dilemma 4 2014 57 4 Environmental and Resource Economics 479 485 http://hdl.handle.net/10.1007/s10640-013-9745-9 text/html Access to full text is restricted to subscribers. Pascale Combes Motel Pascale.motel_combes@udamail.fr Johanna Choumert Johanna.choumert@udamail.fr Alexandru Minea alexandru.minea@udamail.fr Thomas Sterner
oai:RePEc:kap:enreec:v:16:y:2000:i:1:p:31-502020-08-08RePEc:kap:enreec
article Air Pollution and Sick-leaves During the last decade an increasing amount of studies have investigatedthe relationship between air pollution and human health effects. In thisstudy we investigate how these effects in turn induce reduced labourproductivity in terms of sick-leaves, which is an important factor inassessment of air pollution costs in urban areas. For this purpose weemploy a logit model along with data on sick-leaves from a large office inOslo and different air pollutants. Our results indicate that sick-leaves aresignificantly associated with particulate matter (PM 10 ), while theassociations with SO 2 and NO 2 , are more ambiguous. We also tryto estimate the induced social costs in terms of lost labour productivity andincreased governmental expenditures, although these estimates are moreuncertain. Copyright Kluwer Academic Publishers 2000 air pollution, logit specification, PM 10 , work loss days, 1 2000 16 5 Environmental and Resource Economics 31 50 http://hdl.handle.net/10.1023/A:1008318004154 text/html Access to full text is restricted to subscribers. Anett Hansen acn@ssb.no Harald Selte Harald.K.Selte@nca.telemax.no
oai:RePEc:kap:enreec:v:50:y:2011:i:4:p:515-5302020-08-08RePEc:kap:enreec
article Moose Hunting Values in Sweden Now and Two Decades Ago: The Swedish Hunters Revisited Contingent valuation, Temporal, Intertemporal, Comparison, Hunting, Moose, Willingness to pay, Value, 4 2011 50 12 Environmental and Resource Economics 515 530 http://hdl.handle.net/10.1007/s10640-011-9480-z text/html Access to full text is restricted to subscribers. Mattias Boman mattias.boman@slu.se Leif Mattsson leif.mattsson@slu.se Göran Ericsson goran.ericsson@slu.se Bengt Kriström bengt.kristrom@slu.se
oai:RePEc:kap:enreec:v:9:y:1997:i:4:p:467-4912020-08-08RePEc:kap:enreec
article ‘Dirty industries’: Patterns of change in industrial countries This article concerns itself with the environmental role of heavily polluting industries since 1970, analysing its development in 11 basic industries, as well as electricity production and road transport, in 32 industrial countries. It argues for a green industrial policy, demonstrating that other mitigations of environmental pressure in industrial countries—end-of-pipe treatment, relocation to the Third World, structural change in the industrial sector and even environmentally oriented modernization—have so far been unable to solve the problems of ‘dirty industries’, although some approaches have shown (some) promise. Copyright Kluwer Academic Publishers 1997 green policy, pollution, relocation, 4 1997 9 6 Environmental & Resource Economics 467 491 http://hdl.handle.net/10.1007/BF02441762 text/html Access to full text is restricted to subscribers. Martin Jänicke Manfred Binder Harald Mönch
oai:RePEc:kap:enreec:v:47:y:2010:i:4:p:567-5882020-08-08RePEc:kap:enreec
article Taxation of a Polluting Non-renewable Resource in the Heterogeneous World Non-renewable resources, Stock pollution, Endogenous growth, Environmental taxation, Inter-country effects, 4 2010 47 12 Environmental and Resource Economics 567 588 http://hdl.handle.net/10.1007/s10640-010-9393-2 text/html Access to full text is restricted to subscribers. Julien Daubanes jdaubanes@ethz.ch André Grimaud
oai:RePEc:kap:enreec:v:27:y:2004:i:2:p:187-2002020-08-08RePEc:kap:enreec
article Household Production and Environmental Kuznets Curves – Examining the Desirability and Feasibility of Substitution This paper provides a theoretical explanation for the widely debatedempirical finding of “Environmental Kuznets Curves”, i.e., U-shaped relationships between per-capita income and indicators of environmentalquality. We present a household-production model in which the degradationof environmental quality is a by-product of household activities. Householdscan not directly purchase environmental quality, but can reduce degradation by substituting more expensive cleaner inputs to production for less costlydirty inputs. If environmental quality is a normal good, one expectssubstitution towards the less polluting inputs, so that increases in incomewill increase the quality of the environment. It is shown that this onlyholds for middle income households. Poorer households spend all income on dirty inputs. When they buy more, as income rises, the pollution also rises.they do not want to substitute, as this would reduce consumption ofnon-environmental services for environmental amenities that are alreadyabundant. Thus, as income rises from low to middle levels, a U shape can result. Yet an N shape might eventually result, as richer households spend all income on clean inputs. Further substitution possibilities are exhausted.Thus as income rises again pollution rises and environmental quality falls. Copyright Kluwer Academic Publishers 2004 development, environment, growth, substitution, 2 2004 27 2 Environmental and Resource Economics 187 200 http://hdl.handle.net/10.1023/B:EARE.0000017279.79445.72 text/html Access to full text is restricted to subscribers. Alexander Pfaff ap196@columbia.edu Shubham Chaudhuri Howard Nye
oai:RePEc:kap:enreec:v:26:y:2003:i:4:p:603-6242020-08-08RePEc:kap:enreec
article The Economics of Shallow Lakes Ecological systems such as shallow lakes areusually non-linear and display discontinuitiesand hysteresis in their behaviour. Thesesystems often also provide conflicting servicesas a resource and a waste sink. This impliesthat the economic analysis of these systemsrequires to solve a non-standard optimalcontrol problem or, in case of a commonproperty resource, a non-standard differentialgame. This paper provides the optimalmanagement solution and the open-loop Nashequilibrium for a dynamic economic analysis ofthe model for a shallow lake. It alsoinvestigates whether it is possible to induceoptimal management in case of common use of thelake, by means of a tax. Finally, some remarksare made on the feedback Nash equilibrium. Copyright Kluwer Academic Publishers 2003 ecological systems, non-linear differential games, 4 2003 26 12 Environmental and Resource Economics 603 624 http://hdl.handle.net/10.1023/B:EARE.0000007351.99227.42 text/html Access to full text is restricted to subscribers. Karl-Göran Mäler Anastasios Xepapadeas Aart de Zeeuw a.j.dezeeuw@uvt.nl
oai:RePEc:kap:enreec:v:8:y:1996:i:4:p:485-4992020-08-08RePEc:kap:enreec
article Ordering effects in contingent valuation surveys This paper focuses on ordering effects in CVM surveys; how the expressed value of a particular good valued in a sequence of several goods depends on where in the sequence the good is valued. We use data from a Norwegian CVM survey focusing on WTP for a 50% reduction in air pollution from car traffic to test for the existence of ordering effects and to apply a test for internal consistency. We found considerable and significant ordering effects in our data, but were not able to reject the hypothesis of internal consistency. Based on our survey, we argue that ordering effects may be a result of rational choice. These effects are problematic if a sequential valuation procedure is applied to a simultaneous problem, and/or the respondents are given imperfect information about the decision problem. Copyright Kluwer Academic Publishers 1996 contingent valuation, ordering effects, air pollution, health damage, 4 1996 8 12 Environmental & Resource Economics 485 499 http://hdl.handle.net/10.1007/BF00357416 text/html Access to full text is restricted to subscribers. Bente Halvorsen
oai:RePEc:kap:enreec:v:16:y:2000:i:2:p:161-1832020-08-08RePEc:kap:enreec
article Joint Management of Emission Abatement and Technological Innovation for Stock Externalities We investigate how emission abatement and technological innovation provide different solutions to reduce pollutant emissions. In the case of a stock externality emission abatement leads to a smooth and continuous adjustment of emissions. Conversely, technological innovation has to be interpreted as an option on a less polluted environment and can justify the use of a pollution threshold above which it is optimal to start a research and development programme for a less polluting technology. It is shown that technological innovation interferes with the traditional emission abatement approach. The optimal abatement level is logically lowered once the less polluting technology is available; nevertheless a temporary increase in emissions is optimal during the research and development period. The usual Pigouvian tax system proves to remain an efficient corrective instrument. A numerical application to the Greenhouse effect is provided. Copyright Kluwer Academic Publishers 2000 climatic change, innovation, irreversibility, options, stock externality, 2 2000 16 6 Environmental and Resource Economics 161 183 http://hdl.handle.net/10.1023/A:1008363207732 text/html Access to full text is restricted to subscribers. Marc Baudry
oai:RePEc:kap:enreec:v:64:y:2016:i:4:d:10.1007_s10640-015-9882-42020-08-08RePEc:kap:enreec
article An Agent Based Analysis of Combinatorial Bidding for Spatially Targeted Multi-Objective Environmental Programs Abstract Establishing national corridors have been identified as a policy priority for environmental and biodiversity conservation in many parts of the world. We explore the performance of a combinatorial landscape auction design to establish environmental corridors using an agent based simulation model. This modelling technique is highly flexible in modelling decision making processes involving heterogeneous landholders. Such structures allow landholders the opportunity to submit joint bids and, as such, share in the benefits that synergies across the landscape provide. The contribution of the paper is threefold. First, we compare spatial and non-spatial project selection to observe whether it is possible to achieve corridor outcomes with a non-spatially targeted project selection mechanism? We observe that while a corridor project selection mechanism increases the procurement cost, such selection mechanisms are necessary for spatially targeted objectives. Second, we study the effect of allowing agents to form coalitions and submit joint bids. We find evidence that joint bidding substantially increased procurement costs especially when the agency’s target was to secure environmental corridors. Third, we study the combined effect of off-site synergies and joint bidding. We observe that relative benefits from off-site synergy are higher in spatial targeting programs compared to non-corridor targeting programs. Agent based models, Combinatorial bidding, Conservation auction, Environmental corridors, Environmental service payment, Mechanism design 4 2016 64 8 1 Environmental and Resource Economics 537 558 http://link.springer.com/10.1007/s10640-015-9882-4 text/html Abstract Md. Sayed Iftekhar mdsayed.iftekhar@uwa.edu.au mdsayediftekhar@yahoo.com The University of Western Australia (UWA) John G. Tisdell john.tisdell@utas.edu.au University of Tasmania
oai:RePEc:kap:enreec:v:46:y:2010:i:1:p:111-1332020-08-08RePEc:kap:enreec
article Evaluating Temporary Certified Emission Reductions in Reforestation and Afforestation Programs Carbon sequestration, Clean Development Mechanism, Forest rotation, Reforestation and afforestation, Social welfare, Temporary certified emission reductions, Q2, Q54, Q23, 1 2010 46 5 Environmental and Resource Economics 111 133 http://hdl.handle.net/10.1007/s10640-009-9338-9 text/html Access to full text is restricted to subscribers. Gregmar Galinato ggalinato@wsu.edu Shinsuke Uchida suchida@arec.umd.edu
oai:RePEc:kap:enreec:v:44:y:2009:i:2:p:145-1652020-08-08RePEc:kap:enreec
article Natural Resources and Internal Conflict Non co-operative games, Point resources, Lootable resources, Trust, C72, D74, O13, 2 2009 44 10 Environmental and Resource Economics 145 165 http://hdl.handle.net/10.1007/s10640-009-9265-9 text/html Access to full text is restricted to subscribers. Arne Schollaert arne.schollaert@UGent.be Dirk gaer
oai:RePEc:kap:enreec:v:58:y:2014:i:1:p:91-1082020-08-08RePEc:kap:enreec
article Why has Europe Become Environmentally Cleaner? Decomposing the Roles of Fiscal, Trade and Environmental Policies This paper examines the role of fiscal policy, trade and energy taxes on environmental quality in Europe using disaggregated data at the monitoring station level for the 12 richest European countries spanning the period from 1995 to 2008. Our estimations show that fiscal policies and energy taxes are important determinants of pollution through various mechanisms. We find that increasing the share of fiscal spending in GDP and shifting the emphasis towards spending in public goods and against non-social subsidies significantly lower the concentrations of sulfur dioxide and ozone but not nitrogen dioxide. At the same time, energy taxes reduce nitrogen dioxide concentrations but have no effect on ozone and sulfur dioxide. Finally trade openness has a direct effect on sulfur dioxide but no effect on nitrogen dioxide or ozone. Our estimates account for time-varying unobserved heterogeneity. Copyright Springer Science+Business Media Dordrecht 2014 Government spending, Spending on public goods, Pollution, Taxes, H50, H40, O13, O44, Q53, 1 2014 58 5 Environmental and Resource Economics 91 108 http://hdl.handle.net/10.1007/s10640-013-9692-5 text/html Access to full text is restricted to subscribers. Ramón López rlopez@arec.umd.edu Amparo Palacios aplopez@arec.umd.edu
oai:RePEc:kap:enreec:v:51:y:2012:i:2:p:189-2132020-08-08RePEc:kap:enreec
article Biology as a Source of Non-convexities in Ecological Production Functions Ecological production function, Non convexity, Ecology/economy integration, Growth functions, Multi species, Animal behavior, Predator/prey, Satiation, Yield functions, 2 2012 51 2 Environmental and Resource Economics 189 213 http://hdl.handle.net/10.1007/s10640-011-9494-6 text/html Access to full text is restricted to subscribers. John Tschirhart jtsch@uwyo.edu
oai:RePEc:kap:enreec:v:26:y:2003:i:4:p:499-5252020-08-08RePEc:kap:enreec
article The Economics of Non-Convex Ecosystems: Introduction The word “convexity” is ubiquitous in economics, but absent fromeconomics. In this paper we explain why, and show what differenceit makes to economic analysis if ecosystem non-convexities aretaken seriously. A simple proof is provided of the connectionbetween “self-similarity” and “power laws”. We also provide anintroduction to each of the papers in the Symposium and draw outthe way in which they form a linked set of contributions. Copyright Kluwer Academic Publishers 2003 bifurcation points, environmental Kuznets curve, hysteresis, irreversibility, non-convexity, Pontryagin Principle, power laws, property rights, separatrix, structural stability, thresholds, 4 2003 26 12 Environmental and Resource Economics 499 525 http://hdl.handle.net/10.1023/B:EARE.0000007347.37345.55 text/html Access to full text is restricted to subscribers. Partha Dasgupta partha.dasgupta@econ.cam.ac.uk Karl-Göran Mäler
oai:RePEc:kap:enreec:v:42:y:2009:i:1:p:133-1352020-08-08RePEc:kap:enreec
article Nancy Bockstael and Kenneth McConnell, Environmental and Resource Valuation with Revealed Preferences: A Theoretical Guide to Empirical Models 1 2009 42 1 Environmental and Resource Economics 133 135 http://hdl.handle.net/10.1007/s10640-008-9240-x text/html Access to full text is restricted to subscribers. John Loomis jloomis@lamar.colostate.edu
oai:RePEc:kap:enreec:v:22:y:2002:i:4:p:477-5042020-08-08RePEc:kap:enreec
article The Social Value of Biodiversity for R&D The value of genetic resources for use in research and development (R&D)activities has been the subject of a literature modelling the activity as onewhere individual firms engage in optimal search. Here we develop a moregeneralised framework in which genetic resources are used in R&D at thebase of an industry that addresses recurring problems of resistance, as inthe pharmaceutical or plant breeding industries. The R&D process is onein which firms are engaging in a continuing contest of innovation againsta background of both creative destruction (Schumpeterian competition) andadaptive destruction (natural selection and adaptation). This frameworkdemonstrates that the search model is conceptually inadequate because itfails to incorporate the important dynamic characteristics of biologicalphenomena. We then demonstrate the important differences between firm-based valuation of genetic resources and the social value of geneticresources for use in this contest of innovation. There are six externalitiesin private patent-based genetic resource valuation, and five of theseindicate that private valuations will under-estimate social values. Copyright Kluwer Academic Publishers 2002 biodiversity, genetic resources, research and development, 4 2002 22 8 Environmental and Resource Economics 477 504 http://hdl.handle.net/10.1023/A:1019869119754 text/html Access to full text is restricted to subscribers. Timo Goeschl tg203@cam.ac.uk Timothy Swanson
oai:RePEc:kap:enreec:v:11:y:1998:i:2:p:155-1752020-08-08RePEc:kap:enreec
article Limits and Cycles of Environmental Policy The OLG-model analyzes emissions of an accumulative pollutant in a laissez-faire economy and an economy regulated through a government controlled license market. The government either takes the price on the license market as given or sells the licenses demanded at the Cournot price. The first type of regulation is called a 'liberal environmental policy', and the second type a 'monopolistic environmental policy'. The forward looking temporary and the stationary equilibria as well as the pollution boundaries of the mechanisms are studied. If people can choose between laissez-faire and regulation (or between the liberal and the monopolistic environmental policy regime), then in general no steady state exists. Instead endogenous policy cycles can alternate between laissez-faire and regulation or between liberal and monopolistic regulation. Copyright Kluwer Academic Publishers 1998 overlapping generations, emission permits, pollution boundaries, environmental policy cycles, 2 1998 11 3 Environmental and Resource Economics 155 175 http://hdl.handle.net/10.1023/A:1008218114525 text/html Access to full text is restricted to subscribers. Thomas Wagner
oai:RePEc:kap:enreec:v:26:y:2003:i:2:p:305-3282020-08-08RePEc:kap:enreec
article Economic Growth and Transboundary Pollution in Europe: An Empirical Analysis The existing empirical evidence suggests that environmental Kuznets curvesonly exist for pollutants with semi-local and medium term impacts.Ansuategi and Perrings (2000) have considered the behavioral basis for thecorrelation observed between different spatial incidence of environmentaldegradation and the relation between economic growth and environmentalquality. They show that self-interested planners following a Nash-typestrategy tend to address environmental effects sequentially: addressingthose with the most immediate costs first, and those whose costs aredisplaced in space later. This paper tests such behavioral basis in thecontext of sulphur dioxide emissions in Europe. Copyright Kluwer Academic Publishers 2003 economic growth, Kuznets, panel data, sulphur oxides, transboundary externalities, 2 2003 26 10 Environmental and Resource Economics 305 328 http://hdl.handle.net/10.1023/A:1026387431794 text/html Access to full text is restricted to subscribers. Alberto Ansuategi jepancoa@bs.ehu.es
oai:RePEc:kap:enreec:v:51:y:2012:i:2:p:215-2392020-08-08RePEc:kap:enreec
article Fishing in a Shallow Lake: Exploring a Classic Fishery Model in a Habitat with Shallow Lake Dynamics Bioeconomics, Dynamic models, Fisheries economics, Habitat damage, Hysteresis, 2 2012 51 2 Environmental and Resource Economics 215 239 http://hdl.handle.net/10.1007/s10640-011-9495-5 text/html Access to full text is restricted to subscribers. Johannus Janmaat john.janmaat@ubc.ca
oai:RePEc:kap:enreec:v:39:y:2008:i:3:p:297-3102020-08-08RePEc:kap:enreec
article Regulating environmental threats Abrupt event, Emission, Climate change, Regulation, Pigouvian tax, Hazard rate, Uncertainty, H23, H41, O13, Q54, Q58, 3 2008 39 3 Environmental and Resource Economics 297 310 http://hdl.handle.net/10.1007/s10640-007-9127-2 text/html Access to full text is restricted to subscribers. Yacov Tsur tsur@agri.huji.ac.il Amos Zemel amos@bgu.ac.il
oai:RePEc:kap:enreec:v:46:y:2010:i:4:p:539-5652020-08-08RePEc:kap:enreec
article Household Adoption of Water-Efficient Equipment: The Role of Socio-Economic Factors, Environmental Attitudes and Policy Attitudes, Metering, Residential water use, Technology adoption, D12, O33, Q25, Q58, 4 2010 46 8 Environmental and Resource Economics 539 565 http://hdl.handle.net/10.1007/s10640-010-9360-y text/html Access to full text is restricted to subscribers. Katrin Millock millock@univ-paris1.fr Céline Nauges cnauges@toulouse.inra.fr
oai:RePEc:kap:enreec:v:6:y:1995:i:1:p:37-522020-08-08RePEc:kap:enreec
article Mean-Gini analysis of stochastic externalities: The case of groundwater contamination The mean-Gini approach is used to analyze stochastic externalities generated by agricultural production. The model addresses the problem of groundwater pollution caused by excessive fertilizer application. Inherent in the mean-Gini approach to expected utility maximization is a two-fold value: the simplicity of the two-parameter mean-variance model and satisfaction of necessary and sufficient conditions for stochastic dominance. Price and quantity policy recommendations to control externalities are formulated based upon the relative assessment of uncertainty by the regulatory authority and the farmers. Using the Gini as a measure of risk allows for the quantification of control policy measures under differentiated risk aversion and multiple sources of pollution. The model shows that when producers underestimate uncertainty, quota policies restricting fertilizer are more efficient than tax policies in reducing groundwater contamination. Copyright Kluwer Academic Publishers 1995 Stochastic externalities, water pollution policies, stochastic dominance, 1 1995 6 7 Environmental & Resource Economics 37 52 http://hdl.handle.net/10.1007/BF00691410 text/html Access to full text is restricted to subscribers. Haim Shalit
oai:RePEc:kap:enreec:v:13:y:1999:i:4:p:459-4722020-08-08RePEc:kap:enreec
article External Effects of Agricultural Production in Italy and Environmental Accounting This paper deals with the valuation of some negative external effects arising from agricultural production in Italy. External effects are treated in a transformation function as a ‘bad’ output additional to the normal output of a production activity. In this case we can distinguish a price component or shadow price of the external effect and a quantity component and estimate them separately. In order to calculate the price component of the external effects we first estimate one point on the marginal external costs curve and then try to obtain the whole curve, i.e. external costs associated to different levels of emissions in different years. As to the quantity component, net emissions of Nitrogen, Phosphorus and Potassium have been estimated. The aggregate value of external effects is then calculated for thirty years from 1961 to 1991 and deducted from the value added of the agricultural sector, as a first step towards the correction of national accounting aggregates to take environmental degradation into account. Copyright Kluwer Academic Publishers 1999 agricultural production, environmental accounting, measuring external effects, 4 1999 13 6 Environmental and Resource Economics 459 472 http://hdl.handle.net/10.1023/A:1008299301169 text/html Access to full text is restricted to subscribers. Silvia Teizzi tiezzisilvia@unisi.it
oai:RePEc:kap:enreec:v:3:y:1993:i:3:p:221-2312020-08-08RePEc:kap:enreec
article Harmonization of carbon taxes in international climate agreements The use of some kind of carbon tax is often proposed as part of an international climate policy. One possibility could be an international climate agreement requiring a harmonization of domestic carbon taxes. It is shown that there are several practical difficulties with such an agreement, and that it therefore is unlikely that CO 2 emissions will be allocated efficiently between countries with this type of agreement. Alternative types of agreements include an international carbon tax, in which the governments of the participating countries pay a tax, in proportion to their CO 2 emissions, to an international agency. A very similar arrangement would be to introduce a system of emission permits which are internationally tradeable between governments. Under quite general conditions, agreements of these two types can be designed so that they are both efficient and satisfy whatever distributional objectives one might have. Under both of these systems, the choice of domestic policies could be left to the individual countries. A domestic carbon tax is an obvious policy response from a country participating in an agreement of this type. Copyright Kluwer Academic Publishers 1993 Carbon tax, tax harmonization, climate policy, international climate agreements, 3 1993 3 6 Environmental & Resource Economics 221 231 http://hdl.handle.net/10.1007/BF00313159 text/html Access to full text is restricted to subscribers. Michael Hoel
oai:RePEc:kap:enreec:v:30:y:2005:i:3:p:279-2862020-08-08RePEc:kap:enreec
article Validity Tests of Benefit Transfer – Are We Performing the Wrong Tests? The validity of environmental benefit transfer has been tested on numerous occasions assuming classical null hypothesis of equality. We argue against this assumption on the basis of theory, which clearly indicates that environmental benefits should be assumed to vary from context to context. We suggest the use of equivalence testing as a more appropriate and a clear compliment to the shortcomings of classical tests. Equivalence tests test the null hypothesis of difference between the original and transferred value estimates. Equivalence tests also combine the concepts of statistical significance and policy significance into one test, by defining an acceptable transfer error prior to the validity test. The results of a published study on validity of benefit transfer are reversed when subjected to an equivalence test. Copyright Springer 2005 benefit transfer, contingent valuation, equivalence tests, validity, 3 2005 30 03 Environmental & Resource Economics 279 286 http://hdl.handle.net/10.1007/s10640-004-2303-8 text/html Access to full text is restricted to subscribers. Dadi Kristofersson Ståle Navrud stale.navrud@ior.nlh.no
oai:RePEc:kap:enreec:v:29:y:2004:i:4:p:379-4002020-08-08RePEc:kap:enreec
article Does Increased Extraction of Natural Gas Reduce Carbon Emissions? Without an international climate agreement, extraction of more natural gas could reduce emissions of CO 2 as more “clean” natural gas may drive out “dirty” coal and oil. Using a computable equilibrium model for the Western European electricity and natural gas markets, we examine whether increased extraction of natural gas in Norway reduces global emissions of CO 2 . We find that both in the short run and in the long run total emissions are reduced if the additional quantity of natural gas is used in gas power production in Norway. If instead the additional quantity is exported directly, total emissions increase both in the short run and in the long run. However, if modest CO 2 -taxes are imposed, increased extraction of natural gas will reduce CO 2 emissions also when the additional natural gas is exported directed. Copyright Kluwer Academic Publishers 2004 carbon emissions, electricity, energy markets, equilibrium modelling, natural gas, 4 2004 29 12 Environmental & Resource Economics 379 400 http://hdl.handle.net/10.1007/s10640-004-9456-3 text/html Access to full text is restricted to subscribers. Finn Aune Rolf Golombek rolf.golombek@frisch.uio.no Sverre Kittelsen
oai:RePEc:kap:enreec:v:45:y:2010:i:3:p:379-4042020-08-08RePEc:kap:enreec
article Model Uncertainty, Ambiguity and the Precautionary Principle: Implications for Biodiversity Management Knightian uncertainty, Ambiguity, Risk, Precautionary principle, Biodiversity management, Optimal harvesting, Robust control, D81, Q20, 3 2010 45 3 Environmental and Resource Economics 379 404 http://hdl.handle.net/10.1007/s10640-009-9319-z text/html Access to full text is restricted to subscribers. Giannis Vardas vardasg@econ.soc.uoc.gr Anastasios Xepapadeas xepapad@aueb.gr
oai:RePEc:kap:enreec:v:6:y:1995:i:2:p:139-1652020-08-08RePEc:kap:enreec
article The economics of managing carbon via forestry: Assessment of existing studies The purpose of this paper is to assess the existing studies on the economics of using forests as a means of mitigating atmospheric carbon build-up. This assessment addresses conceptual and empirical issues and provides a basis for a comprehensive and cost efficient forest management strategy. Critical needs and opportunities for future research are identified. Copyright Kluwer Academic Publishers 1995 Carbon dioxide, costs, economics, forestry, greenhouse effect, mitigation, sequestration, sink, 2 1995 6 9 Environmental & Resource Economics 139 165 http://hdl.handle.net/10.1007/BF00691681 text/html Access to full text is restricted to subscribers. Roger Sedjo Joe Wisniewski Alaric Sample John Kinsman
oai:RePEc:kap:enreec:v:45:y:2010:i:3:p:319-3522020-08-08RePEc:kap:enreec
article Exploring Links Between Innovation and Diffusion: Adoption of NO X Control Technologies at US Coal-fired Power Plants Air pollution, Environmental policy, Expectations, Technology transfer, L94, O31, O33, Q53, Q55, 3 2010 45 3 Environmental and Resource Economics 319 352 http://hdl.handle.net/10.1007/s10640-009-9317-1 text/html Access to full text is restricted to subscribers. David Popp dcpopp@maxwell.syr.edu http://faculty.maxwell.syr.edu/dcpopp/index.html
oai:RePEc:kap:enreec:v:2:y:1992:i:2:p:141-1592020-08-08RePEc:kap:enreec
article International environment conventions: The case of uniform reductions of emissions Several serious environmental problems have a global character. International cooperation to reduce emissions for this type of problems often takes the form of an agreement among the cooperating countries to cut back emissions by a uniform percent rate compared with some base year. This type of agreements has two disadvantages. In the first place, it is well known from environmental economics that equal percentage reductions of emissions from different sources usually gives an inefficient outcome, in the sense that the same environmental goals could be achieved at lower costs through a different distribution of emission reductions. A second problem with agreements of equal percentage reductions is that not all countries will find it in their interest to participate in such agreements. In the paper, it is assumed that the set of countries which participate in an agreement is endogenously determined, with a country participating in an agreement provided that this makes the country better off than it would have been in a situation without any agreement. The agreement among the participating countries is assumed to be a uniform percentage reduction of their emissions. The countries have different opinions about what this uniform percentage should be. In the paper, it is assumed that the outcome is determined by the median country of the participating countries. The assumptions above lead to a particular equilibrium, in which some but not all countries cooperate. The equilibrium reduction of emissions for the cooperating countries is also derived. This equilibrium compared with the first best optimum within the context of simple numerical example. Copyright Kluwer Academic Publishers 1992 International environment conventions, uniform reductions of emissions, 2 1992 2 3 Environmental & Resource Economics 141 159 http://hdl.handle.net/10.1007/BF00338240 text/html Access to full text is restricted to subscribers. Michael Hoel
oai:RePEc:kap:enreec:v:40:y:2008:i:3:p:313-3272020-08-08RePEc:kap:enreec
article The merits of new pollutants and how to get them when patents are granted Innovation, Instrument choice, Monopoly pricing, New pollutants, Patents, Q55, L5, H23, O3, 3 2008 40 7 Environmental and Resource Economics 313 327 http://hdl.handle.net/10.1007/s10640-007-9155-y text/html Access to full text is restricted to subscribers. Grischa Perino perino@uni-hd.de
oai:RePEc:kap:enreec:v:7:y:1996:i:2:p:97-1152020-08-08RePEc:kap:enreec
article The optimal control of emissions and renewable resource harvesting under uncertainty A model of a renewable resource is developed where the growth and quality of the resource are reduced by pollution. Ambient pollution concentrations and the renewable resource stock are modeled as stochastic processes. Conditions for the optimal harvest plan and the optimal emissions rate are derived. The effect of stochastic variations on the optimal management of the resource is analyzed. The steady-state joint probability distribution of the resource and pollution stocks is shown to exist under certain conditions. Copyright Kluwer Academic Publishers 1996 Renewable resources, pollution control, stochastic optimal control, 2 1996 7 3 Environmental & Resource Economics 97 115 http://hdl.handle.net/10.1007/BF00699286 text/html Access to full text is restricted to subscribers. J. Olsen James Shortle
oai:RePEc:kap:enreec:v:29:y:2004:i:3:p:337-3602020-08-08RePEc:kap:enreec
article Prices versus Quantities in a Second-Best Setting The choice between taxes and tradable permits has been independently analysed by two distinct research traditions. The first proceeds from Weitzman's partial equilibrium stochastic model and concludes that a tax should be preferred if the marginal abatement cost curve is steeper than the marginal environmental benefit curve. The second utilises deterministic general equilibrium models with pre-existing distortionary taxes. It concludes that non-revenue-raising instruments (e.g., grandfathered tradable permits) are costlier than revenue-raising ones (e.g., a tax on every unit of pollution or auctioned permits). To build a bridge between these two traditions, we introduce in Weitzman's model a positive cost of public funds due to pre-existing distortionary taxes. The tax admits a greater comparative advantage over the permits, as compared to Weitzman's classical result. Then, we assume that the regulated industry blocks any proposal that poses it too high an expected burden. This may require a transfer to firms, in the form of freely-allocated permits or lump-sum tax rebate. It turns out that if this acceptability constraint is binding, then the comparative advantage of taxes over permits is still reinforced. Quantitatively, even if the marginal benefit function is 50% more steeply sloped than the marginal cost function, the price instrument should be preferred. We also compare the expected net benefit of these two instruments to a contingent instrument which leads to the ex post optimum. The superiority of the contingent instrument over the quantity one is higher than in first-best. Copyright Kluwer Academic Publishers 2004 environmental taxes, policy choice, second best, tradable permits, uncertainty, 3 2004 29 11 Environmental and Resource Economics 337 360 http://hdl.handle.net/10.1007/s10640-004-5265-y text/html Access to full text is restricted to subscribers. Philippe Quirion
oai:RePEc:kap:enreec:v:36:y:2007:i:2:p:163-1902020-08-08RePEc:kap:enreec
article Wind Power in Europe: A Simultaneous Innovation–Diffusion Model The purpose of this paper is to provide a quantitative analysis of innovation and diffusion in the European wind power sector. We derive a simultaneous model of wind power innovation and diffusion, which combines a rational choice model of technological diffusion and a learning curve model of dynamic cost reductions. These models are estimated using pooled annual time series data for four European countries (Denmark, Germany, Spain and the United Kingdom) over the time period 1986–2000. The empirical results indicate that reductions in investment costs have been important determinants of increased diffusion of wind power, and these cost reductions can in turn be explained by learning activities and public R&D support. Feed-in tariffs also play an important role in the innovation and diffusion processes. The higher is the feed-in price the higher is, ceteris paribus, the rate of diffusion, and we present some preliminary empirical support for the notion that the impact on diffusion of a marginal increase in the feed-in tariff will differ depending on the support system used. High feed-in tariffs, though, also have a negative effect on cost reductions as they induce wind generators to choose high-cost sites and provide fewer incentives for cost cuts. This illustrates the importance of designing an efficient wind energy support system, which not only promotes diffusion but also provides continuous incentives for cost-reducing innovations. Copyright Springer Science+Business Media, Inc. 2007 Europe, innovation, learning curve, policy, technology diffusion, wind power, C33, O31, Q42, 2 2007 36 2 Environmental and Resource Economics 163 190 http://hdl.handle.net/10.1007/s10640-006-9025-z text/html Access to full text is restricted to subscribers. Patrik Söderholm patrik.soderholm@ltu.se Ger Klaassen
oai:RePEc:kap:enreec:v:54:y:2013:i:1:p:101-1252020-08-08RePEc:kap:enreec
article CO 2 Emissions and Income Dynamics: What Does the Global Evidence Tell Us? This paper analyzes the co-evolution of two major determinants of social welfare, namely, income and carbon emissions. In particular, by using a distribution dynamics approach based on Markov chains, we investigate the shape and behavior of the joint distribution of per-capita income and carbon dioxide emissions. We arrive at several interesting conclusions, especially in the context of international negotiations on climate change. First, evidence does not support theoretical models predicting the existence of a poverty-environment trap. Specifically, in the long-run two main groups of countries will emerge: poor versus polluting countries. Second, the typical development path leads initially to high emission levels and, subsequently, to high income. Third, the convergence process towards the stationary distribution is very slow. Finally, for carbon emissions, whenever it is observed, the environmental Kuznets curve seems to be only a transitory phenomenon. Copyright Springer Science+Business Media B.V. 2013 CO 2 emissions, Convergence, Markov chains, Multiple equilibria, C14, O11, O44, Q53, 1 2013 54 1 Environmental and Resource Economics 101 125 http://hdl.handle.net/10.1007/s10640-012-9583-1 text/html Access to full text is restricted to subscribers. Thomas Bassetti thomas.bassetti@unipd.it Nikos Benos nbenos@cc.uoi.gr Stelios Karagiannis stkarag@kepe.gr
oai:RePEc:kap:enreec:v:64:y:2016:i:2:d:10.1007_s10640-015-9993-y2020-08-08RePEc:kap:enreec
article Comment on ‘The Global Impacts of Extreme Sea-Level Rise: A Comprehensive Economic Assessment’ Abstract Pycroft et al. (Environ Resour Econ 1–29, 2015) used incorrect and outdated data to study the economic impact of sea level rise. They misinterpret some of their input data, and fail to exploit the strengths of their computable general equilibrium model and previously developed methods to study impacts and adaptation. Climate change, Sea level rise, Computable general equilibrium, Adaptation 2 2016 64 6 9 Environmental and Resource Economics 341 344 http://link.springer.com/10.1007/s10640-015-9993-y text/html Abstract Richard S. J. Tol r.tol@sussex.ac.uk University of Sussex Vrije Universiteit Amsterdam Tinbergen Institute CESifo Robert J. Nicholls University of Southampton Sally Brown University of Southampton Jochen Hinkel Global Climate Forum Athanasios T. Vafeidis University of Kiel Tom Spencer University of Cambridge Mark Schuerch University of Kiel
oai:RePEc:kap:enreec:v:50:y:2011:i:2:p:203-2262020-08-08RePEc:kap:enreec
article Estimating the Costs of Protecting Native Species from Invasive Animal Pests in New South Wales, Australia Biodiversity protection, Cost estimation, Economic surplus, Invasive animals, Pests, Valuation, 2 2011 50 10 Environmental and Resource Economics 203 226 http://hdl.handle.net/10.1007/s10640-011-9468-8 text/html Access to full text is restricted to subscribers. Jack Sinden jsinden@une.edu.au Wendy Gong W.Gong@unsw.edu.au Randall Jones rjones@adb.org
oai:RePEc:kap:enreec:v:17:y:2000:i:3:p:233-2572020-08-08RePEc:kap:enreec
article International Trade and Environmental Regulation: Time Series Evidence and Cross Section Test This paper examines empiricallywhether more stringent domestic environmental policiesreduce the international competitiveness ofenvironmentally sensitive goods (ESGs). Our timeseries evidence indicates that there are no systematicchanges in trade patterns of ESGs in the last threedecades, despite the introduction of more stringentenvironmental regulations in most of the developedcountries in the 1970s and 1980s. This observedphenomenon is then subjected to a multi-countryeconometric test using an extended gravity-equationframework. The test suggests that, overall, morestringent environmental regulations do not reducetotal exports, exports of ESGs and exports ofnon-resource-based ESGs. Neither was there anyevidence to support the hypothesis that new tradebarriers emerge to offset the effects of morestringent environmental regulations. Copyright Kluwer Academic Publishers 2000 environmental regulation, international competitiveness, trade and the environment, 3 2000 17 11 Environmental and Resource Economics 233 257 http://hdl.handle.net/10.1023/A:1026428806818 text/html Access to full text is restricted to subscribers. Xinpeng Xu buxxu@inet.polyu.edu.hk
oai:RePEc:kap:enreec:v:42:y:2009:i:3:p:319-3432020-08-08RePEc:kap:enreec
article The Effect of Consumers’ Real-World Choice Sets on Inferences from Stated Preference Surveys Conjoint choice, Stated preference, Choice sets, Random utility models, Omitted substitutes, Q51, Q26, C25, C42, C51, 3 2009 42 3 Environmental and Resource Economics 319 343 http://hdl.handle.net/10.1007/s10640-008-9250-8 text/html Access to full text is restricted to subscribers. J. DeShazo Trudy Cameron cameron@uoregon.edu Manrique Saenz
oai:RePEc:kap:enreec:v:38:y:2007:i:1:p:31-502020-08-08RePEc:kap:enreec
article Measuring environmental efficiency of industry: a case study of thermal power generation in India Technical and environmental efficiency of some coal-fired thermal power plants in India is estimated using a methodology that accounts for firm’s efforts to increase the production of good output and reduce pollution with the given resources and technology. The methodology used is directional output distance function. Estimates of firm-specific shadow prices of pollutants (bad outputs), and elasticity of substitution between good and bad outputs are also obtained. The technical and environmental inefficiency of a representative firm is estimated as 0.06 implying that the thermal power generating industry in Andhra Pradesh state of India could increase production of electricity by 6/ while decreasing generation of pollution by 6%. This result shows that there are incentives or win–win opportunities for the firms to voluntarily comply with the environmental regulation. It is found that there is a significant variation in marginal cost of pollution abatement or shadow prices of bad outputs across the firms and an increasing marginal cost of pollution abatement with respect to pollution reduction by the firms. This result calls for the use of economic instruments like pollution taxes instead of command and control regulation used currently in India to reduce air pollution. Copyright Springer Science+Business Media, Inc. 2007 Q 25, Environmental and technical efficiency, Shadow prices of pollution, Air pollution, 1 2007 38 9 Environmental and Resource Economics 31 50 http://hdl.handle.net/10.1007/s10640-006-9055-6 text/html Access to full text is restricted to subscribers. M. Murty mnm@iegindia.org Surender Kumar Kishore Dhavala
oai:RePEc:kap:enreec:v:58:y:2014:i:1:p:1-332020-08-08RePEc:kap:enreec
article Specifications of Social Welfare in Economic Studies of Climate Policy: Overview of Criteria and Related Policy Insights An important assumption in economic studies of climate policy is the social welfare function. This paper shows that applying distinct decision or social welfare criteria can result in different optimal policies of climate control, notably if climate change impacts are uncertain. First, decision criteria in current climate-economic studies are reviewed. Next, the most important alternatives are discussed, including their (mathematical) formalization and incorporation in economy-climate models. Most of these alternative criteria suggest more stringent climate policies to be optimal than the standard discounted utilitarianism approach. However, several important welfare criteria have not or hardly seen any application in the economic analysis of climate policy. We conclude that there is clear need for systematic research on this theme, for which the current review provides a solid basis. Copyright Springer Science+Business Media Dordrecht 2014 Climate change, Cost-benefit analysis, Discounting , Integrated assessment modelling, Mitigation, Social welfare function, Uncertainty, Q2, Q4, 1 2014 58 5 Environmental and Resource Economics 1 33 http://hdl.handle.net/10.1007/s10640-013-9738-8 text/html Access to full text is restricted to subscribers. W. Botzen wouter.botzen@ivm.vu.nl Jeroen Bergh jeroen.bergh@uab.es
oai:RePEc:kap:enreec:v:38:y:2007:i:4:p:475-4962020-08-08RePEc:kap:enreec
article Corruption, illegal trade and compliance with the Montreal Protocol Corruption, Environment, Illegal, Law, Montreal Protocol, Tariff, Trade, 4 2007 38 12 Environmental and Resource Economics 475 496 http://hdl.handle.net/10.1007/s10640-007-9088-5 text/html Access to full text is restricted to subscribers. Kate Ivanova kate.ivanova@vanderbilt.edu
oai:RePEc:kap:enreec:v:33:y:2006:i:2:p:143-1672020-08-08RePEc:kap:enreec
article Environmental Policy in Open Economies and Monopolistic Competition This paper analyses the implications of international trade for non-cooperative environmental policy in the case of local production externalities. A particular focus is on the potential effects of regulations on the variety of goods and the resulting international spillover caused by trade. A tougher domestic standard negatively affects the utility of the households abroad, since such a policy reduces their variety of imports (due to fewer domestic product inventions) or their consumption of each imported brand (due to higher import prices). Ignoring the negative spillover, non-cooperative governments implement inefficiently strict standards in equilibrium. In contrast to this clear-cut inefficiency result, the impact of international trade on the state of the environment is ambiguous. Copyright Springer 2006 environmental policy, international trade, monopolistic competition, open economies, process standards, Q28, F13, F12, 2 2006 33 02 Environmental & Resource Economics 143 167 http://hdl.handle.net/10.1007/s10640-005-2645-x text/html Access to full text is restricted to subscribers. Alexander Haupt haupt@euv-frankfurt-o.de
oai:RePEc:kap:enreec:v:44:y:2009:i:1:p:29-462020-08-08RePEc:kap:enreec
article Grazing Games: Sharing Common Property Resources with Complex Dynamics Common pool resources, Common property, Complex ecosystem dynamics, Differential games, Grasslands, Multiple equilibria, 1 2009 44 9 Environmental and Resource Economics 29 46 http://hdl.handle.net/10.1007/s10640-008-9258-0 text/html Access to full text is restricted to subscribers. Anne-Sophie Crépin Therese Lindahl therese@beijer.kva.se
oai:RePEc:kap:enreec:v:8:y:1996:i:2:p:183-2042020-08-08RePEc:kap:enreec
article Effectiveness of environmental regulations under imperfect enforcement and the firm's avoidance behavior This paper explicitly defines enforcement quality and develops a model by incorporating enforcement quality and the firm's avoidance behavior. The results indicate that the effectiveness of environmental regulations is likely to depend upon the level of enforcement quality, as well as upon the nature of the firm's avoidance behavior. Policy instruments may become incompatible under certain circumstances. Enforcement quality should be properly targeted to enhance functional harmonization between instruments. The condition under which emission tax is more effective under imperfect enforcement than under complete enforcement is also identified. Copyright Kluwer Academic Publishers 1996 enforcement quality, environmental regulation, penalty, avoidance behavior, 2 1996 8 9 Environmental & Resource Economics 183 204 http://hdl.handle.net/10.1007/BF00357363 text/html Access to full text is restricted to subscribers. Chung-Huang Huang
oai:RePEc:kap:enreec:v:15:y:2000:i:1:p:1-262020-08-08RePEc:kap:enreec
article Storage and Viability of a Fishery with Resource and Market Dephased Seasonalities In this study we analyse the role of the storageregulation in a fishery's production process when theresource exploited and the market to which theproduction is exported are characterized by seasonaldephased oscillations. For this purpose we built up adynamic model drawn from the French Guyana shrimpfishery example. The underlying objective of the modelis not the maximisation of a given criterion (as wouldbe in the optimal control approach), but merely themaintenance of the fishery's economical viability. Thefundamental principle is here to try to preserve asmany as possible viable control options. Theconditions to achieve and maintain this viability arecaptured in a certain number of constraints. Theanalysis points out periods and situations within theseason where the fishermen must anticipate theevolution of their storage to avoid violating thoseviability constraints. The study also indicates howthe fishery's viability can be ensured even if theexploitation costs exceed the commercial value of thelandings for a finite part of the year. However, whenthe resource's and/or market's oscillations are toolarge, the fishery may be not viable any longer and itappears that the crisis can not be removed byinvesting in larger storage capacities. Copyright Kluwer Academic Publishers 2000 dynamic model, fisheries economics, storage regulation, viability analysis, 1 2000 15 1 Environmental and Resource Economics 1 26 http://hdl.handle.net/10.1023/A:1008336002697 text/html Access to full text is restricted to subscribers. Christophe Béné cbene@ifremer.fr Luc Doyen
oai:RePEc:kap:enreec:v:64:y:2016:i:2:d:10.1007_s10640-014-9866-92020-08-08RePEc:kap:enreec
article The Global Impacts of Extreme Sea-Level Rise: A Comprehensive Economic Assessment Abstract This paper investigates the world-wide economic cost of rapid sea-level rise of the kind that could be caused by accelerated ice flow from the West Antarctic and/or the Greenland ice sheets. Such an event would have direct impacts on economic activities located near the coastline and indirect impacts further inland. Using data from the DIVA model on sea floods, river floods, land loss, salinisation and forced migration, we analyse the effects of these damages in a computable general equilibrium model for 25 world regions. We consider three sea-level rise scenarios that correspond to 0.47, 1.12 and 1.75 m by the 2080s. By incorporating a wider range of damage categories, implemented in an economy-wide framework and including very rapid sea-level rise, the study offers a new contribution to climate change impact studies. We find that the loss of GDP worldwide is 0.5 % in the highest sea-level rise scenario, with a loss of welfare (equivalent variation) of almost 2 % world-wide. Within these aggregates, there are large regional disparities, with the Central Europe North region and parts of South-East Asia and South Asia being especially prone to high costs (welfare losses in the range of 4–12 %). The analysis assumes that there is not public adaptation, which would substantially lower the costs. In this way, the analysis demonstrates what is at risk, and could be used to justify adaptation expenses. Climate change, Sea-level rise, Computable general equilibrium (CGE) models, Impact assessment 2 2016 64 6 4 Environmental and Resource Economics 225 253 http://link.springer.com/10.1007/s10640-014-9866-9 text/html Abstract Jonathan Pycroft Jonathan.Pycroft@ec.europa.eu jonathan.pycroft@oxon.org European Commission Jan Abrell European Commission ETH Zurich Juan-Carlos Ciscar European Commission
oai:RePEc:kap:enreec:v:6:y:1995:i:3:p:301-3082020-08-08RePEc:kap:enreec
article Costing the traffic barrier effect: A contingent valuation survey When considering the environmental damage caused by road traffic, one traditionally focuses attention on the consequences of accidents, or on the impact of air and noise pollution. This somewhat narrow definition should be enlarged to capture other, more psychological nuisances. The barrier effect created by heavily travelled streets belongs to this group of nuisances, rarely described and never estimated in monetary terms. It particularly affects children, the disabled and elderly people for whom the street becomes too large to cross. In a survey carried out at Neuchâtel, Switzerland, a contingent market was proposed to suppress the barrier effect around the city centre. A valuation function to predict the bids is estimated and used to infer the annual cost of the nuisance. Copyright Kluwer Academic Publishers 1995 Contingent valuation, barrier effect, road traffic nuisance, 3 1995 6 10 Environmental & Resource Economics 301 308 http://hdl.handle.net/10.1007/BF00705983 text/html Access to full text is restricted to subscribers. Nils Soguel
oai:RePEc:kap:enreec:v:4:y:1994:i:5:p:435-4542020-08-08RePEc:kap:enreec
article On economic disequilibrium and free lunch There is a sharp disagreement between mainstream economists and advocates of energy efficiency as regards the potential for “free lunches” or “no regrets” policies to cut greenhouse gas emissions. From an economics perspective, the critical question is whether the economic system is — or is not — close to a Pareto-optimum equilibrium state. If so, it follows that most technological systems now in place are optimum, or nearly so, from an economic perspective. If not, there may be many sub-optimal technologies in place, with corresponding opportunities for very high returns on appropriate investments. This paper presents some of the evidence supporting the latter thesis. Copyright Kluwer Academic Publishers 1994 Conservation, disequilibrium, CGE mode(s), pareto-optimality, energy efficiency, “free lunch”, “no regrets”, 5 1994 4 10 Environmental & Resource Economics 435 454 http://hdl.handle.net/10.1007/BF00691922 text/html Access to full text is restricted to subscribers. Robert Ayres
oai:RePEc:kap:enreec:v:24:y:2003:i:1:p:97-1012020-08-08RePEc:kap:enreec
article Empirical Evidence Showing The Relationships Between Three Approaches for Pollution Control Willingness to pay models have shown the theoretical relationships between the contingent valuation, cost of illness and the avertive behaviour approaches. In this paper, field survey data are used to compare the relationships between these three approaches and to demonstrate that contingent valuation bids exceed the sum of cost of illness and the avertive behaviour approach estimates. The estimates provide a validity check for CV bids and further support the claim that contingent valuation studies are theoretically consistent. Copyright Kluwer Academic Publishers 2003 avertive behaviour, contingent valuation, cost of illness, willingness to pay, 1 2003 24 1 Environmental and Resource Economics 97 101 http://hdl.handle.net/10.1023/A:1022838112228 text/html Access to full text is restricted to subscribers. Clevo Wilson clevo.wilson@uq.edu.au
oai:RePEc:kap:enreec:v:31:y:2005:i:1:p:1-192020-08-08RePEc:kap:enreec
article Price Competition and Product Differentiation When Consumers Care for the Environment Increasing environmental awareness may affect the pleasure of consuming a good for which an environment friendly substitute is available. In this paper, we investigate the market implication of product differentiation when customers are concerned about environmental aspects of the good. We use the spatial duopoly model to determine how environmental concern affects prices, product characteristics and market shares of the competing firms. Our analysis is based on a two-stage game, where at the first stage each firm chooses the characteristic of its product. At the second stage, each firm chooses its price. Equilibrium prices and market shares are affected by consumer awareness of the environment and by the higher costs for producing those goods. As for the Nash equilibria in the characteristics, we find three equilibria depending on the parameter constellation. In order to find out whether the market functions in an optimal way, we determine the choice of environmental characteristics by a welfare maximizing authority. The objective of the paper is to understand the environmental quality choices facing firms and to provide policies that would align private choices with the social optimum. Copyright Springer 2005 environmental awareness, green market, product differentiation, quality competition, 1 2005 31 05 Environmental & Resource Economics 1 19 http://hdl.handle.net/10.1007/s10640-004-6977-8 text/html Access to full text is restricted to subscribers. Klaus Conrad kconrad@rumms.uni-mannheim.de
oai:RePEc:kap:enreec:v:32:y:2005:i:1:p:129-1602020-08-08RePEc:kap:enreec
article Coping with Preference Anomalies in Cost–Benefit Analysis: A Market-Simulation Approach This paper proposes a methodological strategy for cost–benefit analysis (CBA) which does not require the assumption that individuals’ preferences satisfy standard coherence conditions, and so renders CBA immune to the problems generated by preference anomalies. The proposal treats CBA as an exercise in market simulation, based on the measurement of surplus. Anomalies occur when surplus measurements vary according to the hypothetical payment mechanism used. In such cases, the mechanism that is the “closest market analogue” should be used. This approach is used to resolve problems associated with some familiar anomalies, including inconsistencies between “citizen” and “consumer” valuations, and endowment effects. Copyright Springer 2005 anomalies, cost–benefit analysis, market simulation, 1 2005 32 09 Environmental and Resource Economics 129 160 http://hdl.handle.net/10.1007/s10640-005-6031-5 text/html Access to full text is restricted to subscribers. Robert Sugden r.sugden@uea.ac.uk
oai:RePEc:kap:enreec:v:4:y:1994:i:5:p:419-4342020-08-08RePEc:kap:enreec
article Coalitions in transboundary pollution reduction 5 1994 4 10 Environmental & Resource Economics 419 434 http://hdl.handle.net/10.1007/BF00691921 text/html Access to full text is restricted to subscribers. L. Krechetov
oai:RePEc:kap:enreec:v:44:y:2009:i:2:p:203-2302020-08-08RePEc:kap:enreec
article Municipal Waste Kuznets Curves: Evidence on Socio-Economic Drivers and Policy Effectiveness from the EU Waste Kuznets Curves, Delinking, Waste management, Waste policies, Policy evaluation, Landfill diversion, Waste generation, Incineration, Waste prevention, C23, Q38, Q56, 2 2009 44 10 Environmental and Resource Economics 203 230 http://hdl.handle.net/10.1007/s10640-009-9280-x text/html Access to full text is restricted to subscribers. Massimiliano Mazzanti ma.maz@iol.it Roberto Zoboli
oai:RePEc:kap:enreec:v:57:y:2014:i:4:p:553-5772020-08-08RePEc:kap:enreec
article Managing Environmental Risk in Presence of Climate Change: The Role of Adaptation in the Nile Basin of Ethiopia This study investigates the impact of climate change adaptation on farm households’ downside risk exposure in the Nile Basin of Ethiopia. The analysis relies on a moment-based specification of the stochastic production function. We use an empirical strategy that accounts for the heterogeneity in the decision on whether to adapt or not, and for unobservable characteristics of farmers and their farm. We find that past adaptation to climate change (i) reduces current downside risk exposure, and so the risk of crop failure; (ii) would have been more beneficial to the non-adapters if they adapted, in terms of reduction in downside risk exposure; and (iii) is a successful risk management strategy that makes the adapters more resilient to climatic conditions. Copyright Springer Science+Business Media Dordrecht 2014 Adaptation, Climate change, Downside risk exposure, Environmental risk, Ethiopia, D80, Q18, Q54, 4 2014 57 4 Environmental and Resource Economics 553 577 http://hdl.handle.net/10.1007/s10640-013-9696-1 text/html Access to full text is restricted to subscribers. Salvatore Di Falco salvatore.difalco@unige.ch Marcella Veronesi
oai:RePEc:kap:enreec:v:15:y:2000:i:4:p:379-3952020-08-08RePEc:kap:enreec
article On the Use of Exchange Rates as Trading Rules in a Bilateral System of Transferable Discharge Permits The use of a system of transferable discharge permitsto control the harmful effects of non-uniformly mixedpollutants requires the application of trading rulesin order to prevent permit trading among sources fromviolating environmental standards. The elements andproperties of bilateral trading rules can be analyzedmore easily once formulated as exchange rates, whichwould convert, in a cost-effective way, the emissionright potentially given up by the seller into an offsetting emission right acquired by the buyer. Inthis article, a new expression for such exchange ratesis proposed and then analyzed to infer someunexplored properties of the system. Copyright Kluwer Academic Publishers 2000 air pollution, cost-effectiveness, economic instruments, emission trading, exchange rates, trading rules, transferable discharge permits, 4 2000 15 4 Environmental and Resource Economics 379 395 http://hdl.handle.net/10.1023/A:1008372531567 text/html Access to full text is restricted to subscribers. Fernando Rodríguez ferrodri@gugu.usal.es
oai:RePEc:kap:enreec:v:52:y:2012:i:4:p:499-5302020-08-08RePEc:kap:enreec
article Optimal Disease Eradication in Sympatric Metapopulations Infectious diseases, Metapopulation, Non-convexities, Differential games, Optimal control, 4 2012 52 8 Environmental and Resource Economics 499 530 http://hdl.handle.net/10.1007/s10640-011-9540-4 text/html Access to full text is restricted to subscribers. M. Ceddia graziano.ceddia@modul.ac.at
oai:RePEc:kap:enreec:v:27:y:2004:i:1:p:65-862020-08-08RePEc:kap:enreec
article A Bioeconomic Analysis of a Shellfishery: The Effects of Recruitment and Habitat in a Metapopulation Model This paper presents a bioeconomic model wherefishing effort exerted has multiple impacts onthe recruitment process of a sedentaryshellfish population. Recognizing thatsedentary populations generally possessmetapopulation characteristics at therecruitment stage, we show that fishing effortexerted not only influences the recruitmentprocess indirectly by limiting the number ofadults that spawn, but also directly byaffecting the habitat in which shellfish larvaerecruit. Depending on the recruitmentcharacteristics, fishing can have negative andpositive direct and indirect effects on therecruitment process. Next, a positive directeffect that fishing can have on the growth rateof the shellfish population if space to recruitto is limited is studied. Generalcharacteristics of sustainable fishing areanalyzed for the case that recruitment occursimmediately once spawning has occurred as wellas for the case that recruitment takes placeover a longer period of time. Conditions areidentified under which shellfishing should beencouraged in order to facilitate therecruitment process of juveniles. The paperends by analyzing how fishing alters theoptimal sustainable solution when itcontributes to habitat destruction. Copyright Kluwer Academic Publishers 2004 fishing effort, habitat destruction, recruitment, shellfish, sustainable fishing, 1 2004 27 1 Environmental and Resource Economics 65 86 http://hdl.handle.net/10.1023/B:EARE.0000016797.30911.3f text/html Access to full text is restricted to subscribers. R.J. Imeson Imeson@feweb.vu.nl J.C.J.M. van den Bergh Jbergh@feweb.vu.nl
oai:RePEc:kap:enreec:v:59:y:2014:i:2:p:275-2932020-08-08RePEc:kap:enreec
article Prices Versus Quantities: Technology Choice, Uncertainty and Welfare Technological improvements have proven essential in mitigating environmental problems such as climate change, depletion of the ozone layer and acid rain. While it is well-known that price- and quantity-based regulatory instruments provide different investment levels, the effects on the choice between different technologies have received scant attention. This paper expands on the prices versus quantities literature by investigating firms’ technology choice in the face of demand and supply side uncertainty. I show that the regulator can not design tradable emissions permits and an emissions tax such that the two regimes are equivalent, even in terms of expected values. Moreover, a tax encourages the most flexible abatement technology if and only if stochastic costs and the equilibrium permit price have sufficiently strong positive covariance, compared with the variance in consumer demand for the good produced. Finally, the firms’ technology choices are socially optimal under tradable emissions permits, but not under an emissions tax. Copyright Springer Science+Business Media Dordrecht 2014 Regulation, Technology choice, Welfare, Uncertainty, Investment, H23, Q55, Q58, 2 2014 59 10 Environmental and Resource Economics 275 293 http://hdl.handle.net/10.1007/s10640-013-9728-x text/html Access to full text is restricted to subscribers. Halvor Storrøsten hbs@ssb.no
oai:RePEc:kap:enreec:v:10:y:1997:i:2:p:177-1882020-08-08RePEc:kap:enreec
article Organic Farming for Sustainable Agricultural Production. A Brief Theoretical Review and Preliminary Empirical Evidence The basic premise of this paper is that modern agricultural production is not sustainable in view of the high cost of chemical inputs (notably fertilizers and pesticides) used and their detrimental effects on the environment. Some of these effects are briefly discussed in this paper. The possibility of adopting organic farming as a means of promoting sustainable agriculture has been the main objective of this investigation. The results of the experiment carried out at the Chepkoilel campus farm, Moi University, Kenya to demonstrate the differences between the yields and returns to organic manure and chemical fertilizers show that high yields are obtained from the use of organic manure. The high yields are also shown to be obtained in subsequent years after the application of the organic manure. This is cheaper than the application of chemical fertilizers. Maximum yields are obtained from a combination of organic manure and chemical fertilizers. Organic manure has the added advantage of providing more healthy vegetables for human consumption and ensuring optimum soil fertility for sustainable production. Copyright Kluwer Academic Publishers 1997 2 1997 10 9 Environmental and Resource Economics 177 188 http://hdl.handle.net/10.1023/A:1026472410031 text/html Access to full text is restricted to subscribers. S.J. Dima A.N. Odero
oai:RePEc:kap:enreec:v:3:y:1993:i:5:p:457-4702020-08-08RePEc:kap:enreec
article Regulation of the iberoatlantic sardine fishery The basic aim of this paper is to use a case study to illustrate the way in which controls can achieve an optimum exploitation of marine resources. The specific fishery under study is the Iberoatlanti sardine fishery. A bioeconomic deterministic model for this fish resource is developed and applied. The most relevant results and estimates are showed. Finally, we present some economic policy recommendations for the fishery, as well as considerations for the application of the regulatory measures. Copyright Kluwer Academic Publishers 1993 5 1993 3 10 Environmental & Resource Economics 457 470 http://hdl.handle.net/10.1007/BF00310248 text/html Access to full text is restricted to subscribers. Juan Surís
oai:RePEc:kap:enreec:v:49:y:2011:i:1:p:1-222020-08-08RePEc:kap:enreec
article Accounting for Preference and Scale Heterogeneity in Establishing Whether it Matters Who is Interviewed to Reveal Household Automobile Purchase Preferences The choice of automobile purchases in households often involves participation of more than one household member, each of which exerts some degree of influence on the final choice outcome. The influence of more than one agent has been recognised for many years, and yet the majority of automobile choice studies develop choice models as if a single agent is involved in the preference revelation process. What is not clear is whether it makes any substantive difference in preference revelation according to who is interviewed in a household. Using a generalised mixed logit framework that accounts for preference and scale heterogeneity, we estimate a series of models to investigate whether there are significant differences between the preferences of each individual in a household when assessed in isolation from other household members, as well as their joint preferences when expressing their preferences through a group choice task. The context is choosing amongst petrol, diesel and hybrid fuelled vehicles (associated with specific levels of fuel efficiency and engine capacity) when faced with a mix of vehicle prices, fuel prices, fixed annual registration fees, annual emission surcharges and vehicle kilometre emission surcharges. Using a stated choice experiment, we find that sampling a single individual as a representative of the household’s preferences is less appropriate than utilising preference information from the relevant group of decision makers in the household. Copyright Springer Science+Business Media B.V. 2011 Automobile choice, Individual and group preferences, Vehicle emission charges, Stated choice experiment, Internet survey, Direct elasticities, 1 2011 49 5 Environmental and Resource Economics 1 22 http://hdl.handle.net/10.1007/s10640-010-9420-3 text/html Access to full text is restricted to subscribers. David Hensher David.Hensher@sydney.edu.au Matthew Beck Matthew.Beck@sydney.edu.au John Rose John.Rose@sydney.edu.au
oai:RePEc:kap:enreec:v:50:y:2011:i:2:p:285-3032020-08-08RePEc:kap:enreec
article Delegation of Decision-Rights for Wetlands Hierarchical governance, Nitrogen, Phosphorus, Stackelberg, Water Framework Directive, Wetlands, 2 2011 50 10 Environmental and Resource Economics 285 303 http://hdl.handle.net/10.1007/s10640-011-9472-z text/html Access to full text is restricted to subscribers. Katarina Elofsson katarina.elofsson@slu.se
oai:RePEc:kap:enreec:v:42:y:2009:i:1:p:3-382020-08-08RePEc:kap:enreec
article The Welfare Economic Theory of Green National Accounts Natural capital, Ecosystems, Capital depreciation, Shadow prices, Income, Comprehensive wealth, Net national product, Intergenerational well-being, Sustainable development, Population growth, Technological uncertainty, Wiener process, 1 2009 42 1 Environmental and Resource Economics 3 38 http://hdl.handle.net/10.1007/s10640-008-9223-y text/html Access to full text is restricted to subscribers. Partha Dasgupta partha.dasgupta@econ.cam.ac.uk
oai:RePEc:kap:enreec:v:64:y:2016:i:1:d:10.1007_s10640-015-9924-y2020-08-08RePEc:kap:enreec
article Measuring Sustainability in the UN System of Environmental-Economic Accounting Abstract The adoption of the System of Environmental-Economic Accounting 2012: Central Framework as a UN statistical standard is a landmark in environmental accounting. The SEEA has the same authority and weight as the System of National Accounts in the pantheon of official statistics. The SEEA defines the unit value of depletion of an exhaustible resource to equal the average unit value of the asset (the total asset value divided by the physical stock of resource). By applying this definition to a non-optimal Dasgupta–Heal–Solow model of an extractive economy, we show that ‘depletion-adjusted net saving’ as defined in the SEEA supports a generalized version of the Hartwick Rule. This measure of saving can guide policies for sustainable development in extractive economies, in particular fiscal policies concerning consumption and investment expenditures funded by resource rents. The conditions required to support this finding are (i) that extraction declines over time at a constant rate, and (ii) that the marginal cost of resource extraction is constant. A less general result holds in the case of increasing marginal extraction costs. Sustainable development, Exhaustible resources, Depletion, Environmental accounting, Hartwick Rule 1 2016 64 5 2 Environmental and Resource Economics 25 36 Q32 http://link.springer.com/10.1007/s10640-015-9924-y text/html Abstract Kirk Hamilton k.e.hamilton@verizon.net London School of Economics
oai:RePEc:kap:enreec:v:54:y:2013:i:2:p:201-2212020-08-08RePEc:kap:enreec
article The Effects of Changing Cost Vectors on Choices and Scale Heterogeneity Choice Experiments (CE) are widely used to estimate the values of changes in non-market goods and services. A cost attribute is typically included in a CE questionnaire to enable the estimation of monetary values for changes in the non-market attributes presented. Notwithstanding the central importance of the cost attribute, relatively little research has been undertaken on the impacts of varying cost attribute levels on value estimates, or on individual heterogeneity. In this paper, I present results from mixed logit and generalised mixed logit models that account for unobserved idiosyncratic preference and scale heterogeneity. Respondents are found to anchor their choices on the relative cost levels presented in the survey with results suggesting that people are more sensitive to relative rather than absolute cost vectors. However, the higher cost levels do not lead to significantly higher value estimates, partly because of observed preference heterogeneity towards the environmental attributes. An important observation is that scale heterogeneity is important: accounting for scale— as well as preference—heterogeneity in the generalised mixed logit model leads to significantly improved model fit. The results indicate significant unobserved error variance across respondents, unrelated to whether a high or low cost vector is used. Copyright Springer Science+Business Media B.V. 2013 Anchoring effects, Choice modelling, Environmental valuation, Generalised mixed logit models, Non-market valuation, Preference heterogeneity, Reference dependency, Scale effects, 2 2013 54 2 Environmental and Resource Economics 201 221 http://hdl.handle.net/10.1007/s10640-012-9587-x text/html Access to full text is restricted to subscribers. Marit Kragt marit.kragt@uwa.edu.au
oai:RePEc:kap:enreec:v:44:y:2009:i:1:p:1-102020-08-08RePEc:kap:enreec
article Distribution Free Consistent Estimation of Mean WTP in Dichotomous Choice Contingent Valuation Contingent valuation, Dichotomous choice, Linear projection, Consistent estimation, 1 2009 44 9 Environmental and Resource Economics 1 10 http://hdl.handle.net/10.1007/s10640-008-9255-3 text/html Access to full text is restricted to subscribers. Masahide Watanabe wmasa@osaka-ue.ac.jp Kota Asano asano@z05.mbox.media.kyoto-u.ac.jp
oai:RePEc:kap:enreec:v:62:y:2015:i:1:p:35-572020-08-08RePEc:kap:enreec
article The Price and Welfare Effects of Biofuel Mandates and Subsidies The coordination of agricultural, environmental and energy policies requires a thorough understanding of the interactions between crop, food and energy markets. This paper develops a general equilibrium model to analyze the interactions and to evaluate the price and welfare effect of biofuel mandates and subsidies. Results suggest that biofuel mandates are a primary cause of some of the major concerns associated with crop-based biofuel production, including higher food prices and lower consumer welfare. The price and welfare effects of biofuel subsidies depend on the level of the biofuel mandate. When the mandate is weak or not binding, a biofuel subsidy becomes a transfer from consumers to biofuel producers, which tends to reduce food and fuel prices because of the negative income effect. However, with a strong mandate, a biofuel subsidy will increase the prices of crops, food, and fuel when crops account for a large share of production cost and when the supply of crops is inelastic. Using parameter values consistent with empirical evidence found in the U.S., we calculated the price and welfare effects of the biofuel mandates and subsidies specified in the Energy Independence and Security Act of 2007. Results suggest that the biofuel mandates and subsidies increased the price of corn by 25–40 %, increased the price of food by 1.5–2.5 %, and lowered the price of gasoline by 5–10 %. Overall, the biofuel policies had only a small effect on consumer utility. Copyright Springer Science+Business Media Dordrecht 2015 Biofuel mandate, Biofuel subsidies, Energy policy, Ethanol, Food and energy prices, Food price, Policy interaction, Q28, Q42, Q48, 1 2015 62 9 Environmental and Resource Economics 35 57 http://hdl.handle.net/10.1007/s10640-014-9814-8 text/html Access to full text is restricted to subscribers. JunJie Wu junjie.wu@oregonstate.edu Christian Langpap
oai:RePEc:kap:enreec:v:52:y:2012:i:2:p:195-2122020-08-08RePEc:kap:enreec
article Instrument Choice and Motivation: Evidence from a Climate Change Experiment Instrument choice, Motivation crowding, Externalities, H23, H41, Q58, C91, 2 2012 52 6 Environmental and Resource Economics 195 212 http://hdl.handle.net/10.1007/s10640-011-9524-4 text/html Access to full text is restricted to subscribers. Timo Goeschl Grischa Perino g.perino@uea.ac.uk
oai:RePEc:kap:enreec:v:34:y:2006:i:1:p:45-502020-08-08RePEc:kap:enreec
article Comment on “Revealing Differences in Willingness to Pay Due to the Dimensionality of Stated Choice Designs: An Initial Assessment” There are very few studies that quantify the interactions and tradeoffs between statistical and cognitive efficiency in designing stated-choice studies. While a conceptual framework for evaluating cognitive strategies would be desirable, Hensher adopts a strictly empirical approach in this experiment. The success of the study must be evaluated in light of his aggregating attributes rather than controlling the number of attributes, asymmetry in the narrow-range and wide-range attributes, and lack of orthogonality between the number of attributes and number of alternatives. Nevertheless, Hensher challenges uncritical acceptance of any given set of design features and correctly insists that we confirm our experience with rigorous, quantitative experiments. Copyright Springer 2006 choice experiments, experimental design, stated-choice methods, stated preference, transportation economics, C25, C93, R41, 1 2006 34 05 Environmental and Resource Economics 45 50 http://hdl.handle.net/10.1007/s10640-005-3783-x text/html Access to full text is restricted to subscribers. F. Johnson frjohnson@rti.org
oai:RePEc:kap:enreec:v:3:y:1993:i:4:p:337-3582020-08-08RePEc:kap:enreec
article Intergenerational transfers and the social discount rate This paper investigates the relationship between intergenerational asset transfers and the choice of the discount rate for use in cost-benefit analysis in a model of a competitive overlapping generations economy constrained by a socially managed exhaustible resource. Provided that there are no distortions in capital markets and that all agents hold perfect foresight, cost-benefit techniques will result in a Pareto efficient resource allocation if the discount rate is set equal to the market rate of interest. But since the path of the interest rate depends on the level of intergenerational transfers, cost-benefit techniques do not ensure a socially desirable distribution of welfare between generations; a social optimum will result only if intergenerational transfers are properly chosen and enforced. Decentralized private altruism may result in intergenerational transfers that both present and future individuals would agree are too small if members of the present generation attach positive weight to the general welfare of future generations, not simply their personal descendants. In a world where intergenerational transfers are non-optimal, second-best policy-making may imply a constrained optimum that is inefficient. Together, these findings suggest that cost-benefit analysis is at best a partial criterion to policy formulation that should be used only in conjunction with ethical principles that define the proper distribution of welfare between present and future generations. Copyright Kluwer Academic Publishers 1993 exhaustible resource allocation, intergenerational equity, intergenerational transfers, overlapping generations models, social discount rate, 4 1993 3 8 Environmental and Resource Economics 337 358 http://hdl.handle.net/10.1007/BF00418816 text/html Access to full text is restricted to subscribers. Richard Howarth Richard Norgaard
oai:RePEc:kap:enreec:v:40:y:2008:i:1:p:1-362020-08-08RePEc:kap:enreec
article Economic Growth and Development: Towards a Catchup Model Economic development, Energy, Electrification, Petroleum, International, 1 2008 40 5 Environmental and Resource Economics 1 36 http://hdl.handle.net/10.1007/s10640-007-9138-z text/html Access to full text is restricted to subscribers. Jie Li jiel@princeton.edu Robert Ayres robert.ayres@insead.edu
oai:RePEc:kap:enreec:v:4:y:1994:i:2:p:209-2172020-08-08RePEc:kap:enreec
article An economic estimate of the effect of a waterside location on property values Since the rise of the railway, and the later development of road transport, the economic value of inland waterways in the UK as freight carriers has steadily declined. The reduction in the economic importance of canals has been somewhat offset by their growing popularity as a recreational resource, and by the amenity value which they provide to that part of the population living in close proximity to them. Focussing on two case study areas, this paper uses an hedonic price model to estimate the economic benefits which residents gain from a waterside location. These benefits may have important policy implications for those bodies who own undeveloped land bordering waterways. Copyright Kluwer Academic Publishers 1994 Property values, hedonic price method, waterways, 2 1994 4 4 Environmental & Resource Economics 209 217 http://hdl.handle.net/10.1007/BF00692204 text/html Access to full text is restricted to subscribers. Guy Garrod Ken Willis
oai:RePEc:kap:enreec:v:37:y:2007:i:2:p:431-4432020-08-08RePEc:kap:enreec
article Environmental Quality, Medical Care Demand and Environmental Tax Interactions Assuming that improvements in environmental quality lead to lower demand for medical care, it has been shown that general-equilibrium interactions with the tax-distorted labor market reduce the benefits from such improvements, and thus lower the second-best optimal environmental tax. This paper provides some insights on how the link between environmental quality, individual’s health capital, and the demand for medical care affects the analysis of pollution taxes. The paper develops structural conditions under which improvements in environmental quality decrease/increase the demand for medical care and discusses their implications for environmental tax interactions. Copyright Springer Science+Business Media, Inc. 2007 second-best environmental taxes, medical care demand elasticity, tax interaction, H21, H23, I1, 2 2007 37 6 Environmental and Resource Economics 431 443 http://hdl.handle.net/10.1007/s10640-006-9053-8 text/html Access to full text is restricted to subscribers. Çağatay Koç ckoc@uta.edu
oai:RePEc:kap:enreec:v:9:y:1997:i:1:p:83-1022020-08-08RePEc:kap:enreec
article How should an accumulative toxic substance be banned? The harmful effects on human health or ecosystems of many toxic substances depend on their cumulative concentration in the carrying medium (water, soil, or air), not just on the annual deposition rates of the substances. Accumulative toxic substances pose challenges to regulatory policy that are not faced when controlling pollutants whose damaging effects are though to depend primarily on annual emission flows. An increasingly common response is to phase out offending uses or production of the substance. In this paper we take as given the goal of phasing out an accumulative pollutant and examine different ways this could be done using a simple, partial-equilibrium dynamic model. We focus on phaseout measures in which the cumulative production and release of the offending substance over the transition period is fixed. Once this cumulative volume is reached, users must convert to a known but higher-cost substitute that is assumed to be benign. The key to the analysis is the observation that the quota on cumulative production makes production of the toxic substance during the transition analogous to extraction of an exhaustible resource with a higher-cost, nonexhaustible ‘backstop’ technology. Using this framework, we first describe the cost-effective outcome when the ‘sunset’ date is chosen to maximize product market surplus subject to the cumulative production constraint. This outcome is compared to one in which the regulator fixes the sunset date, and one in which the regulator limits annual production as well as cumulative production out of concern for acute exposure effects. Finally, we discuss the kinds of market-based policy instruments that would be appropriate for supporting a cost-effective outcome. Copyright Kluwer Academic Publishers 1997 accumulative pollutants, product bans, dynamic policy design, 1 1997 9 1 Environmental & Resource Economics 83 102 http://hdl.handle.net/10.1007/BF02441371 text/html Access to full text is restricted to subscribers. Michael Toman Karen Palmer
oai:RePEc:kap:enreec:v:53:y:2012:i:3:p:389-4072020-08-08RePEc:kap:enreec
article Test–Retest Reliability of Choice Experiments in Environmental Valuation The paper presents the results of the first test–retest study on choice experiments in environmental valuation. In a survey concerning landscape externalities of onshore wind power in central Germany, respondents answered the same five choice sets at two different points in time. Each choice set comprised three alternatives described by five attributes, and the time interval between the test and the retest was eleven months. The analysis takes place at three different levels, investigating choice consistency at the choice task level and repeatability of the latent construct utility at the level of parametric models as well as at the level of willingness-to-pay estimates. At the choice task level we observed 59 % identical choices. The parametric analysis shows that the test and retest estimates are not equal, even when we control for scale, that is, differences in the error variance. However, comparing the marginal willingness-to-pay estimates among test and retest reveals only a statistically significant difference for one of the attributes. Overall, this indicates a moderate test–retest reliability taking into account that consistency at the choice task level overlooks the stochastic nature of the process underlying discrete choice experiments. Copyright The Author(s) 2012 Choice experiment, Environmental valuation, Test–retest reliability, Wind power, C8, Q0, Q5, 3 2012 53 11 Environmental and Resource Economics 389 407 http://hdl.handle.net/10.1007/s10640-012-9567-1 text/html Access to full text is restricted to subscribers. Ulf Liebe uliebe@uni-goettingen.de Jürgen Meyerhoff Volkmar Hartje
oai:RePEc:kap:enreec:v:40:y:2008:i:4:p:609-6092020-08-08RePEc:kap:enreec
article The Effect of Environmental and Social Performance on the Stock Performance of European Corporations 4 2008 40 8 Environmental and Resource Economics 609 609 http://hdl.handle.net/10.1007/s10640-007-9160-1 text/html Access to full text is restricted to subscribers. Andreas Ziegler andreas.ziegler@ccrs.unizh.ch Michael Schröder schroeder@zew.de Klaus Rennings rennings@zew.de
oai:RePEc:kap:enreec:v:22:y:2002:i:1:p:133-1562020-08-08RePEc:kap:enreec
article Assessing the Employment Impacts of Environmental and Natural Resource Policy This paper provides an introductory guide for environmental andresource economists to methods of assessing the impact of environmentaland natural resource policy on employment. It examines five basicapproaches to evaluating the effect of a policy action on employment:1) supply and demand analysis of the affected sector; 2) partialequilibrium analysis of multiple markets; 3) fixed-price, generalequilibrium simulations (input-output (I-O) and social accounting matrix (SAM) multiplier models); 4) non-linear, general equilibriumsimulations (Computable General Equilibrium (CGE) models); and 5) econometric estimation of the adjustment process, particularly timeseries analysis. The basic modeling structure and data requirementsfor each of these approaches are described. Simple examples of theirapplication to evaluation of environmental and natural resourcepolicy are developed and the relative merits and applicability of each are discussed. Copyright Kluwer Academic Publishers 2002 computable general equilibrium, employment impact, input-output, natural resource policy, social accounting matrix, 1 2002 22 6 Environmental and Resource Economics 133 156 http://hdl.handle.net/10.1023/A:1015531702905 text/html Access to full text is restricted to subscribers. Peter Berck Sandra Hoffmann
oai:RePEc:kap:enreec:v:8:y:1996:i:2:p:221-2452020-08-08RePEc:kap:enreec
article Any need for coordination of policies towards transit traffic with a negative local externality? International transit traffic between countries can be expected to increase in the future. This paper investigates whether international policy coordination is appropriate in the case of international transit traffic causing a local environmental externality. This issue is analysed in a two-country model where traffic is used as an input in production. It is found that individual optimization of the countries is likely to result in an outcome with less than optimal international traffic, i.e. too little pollution compared with optimum. Copyright Kluwer Academic Publishers 1996 international policy coordination, local externality, transit traffic, 2 1996 8 9 Environmental & Resource Economics 221 245 http://hdl.handle.net/10.1007/BF00357365 text/html Access to full text is restricted to subscribers. Thomas Bjørner
oai:RePEc:kap:enreec:v:29:y:2004:i:1:p:39-562020-08-08RePEc:kap:enreec
article Political Competition, Rent Seeking and the Choice of Environmental Policy Instruments: Comment In this comment, I analyze Damania's political economy model (Environmental and Resource Economics 13: 415–433, 1999), correcting some flaws and clarifying some ambiguities. I arguethat the political parties are identical at the outset of the game. Onlyafter the parties have chosen the instrument (standards or taxation) and thestrictness of environmental policy do the environmentalists and thepolluting firms know which party to support in the election campaign. Inequilibrium, both parties choose the same platform, so that both have anequal probability of winning the election. Copyright Kluwer Academic Publishers 2004 environmental policy, political competition, pollution taxes, rent seeking, 1 2004 29 9 Environmental and Resource Economics 39 56 http://hdl.handle.net/10.1023/B:EARE.0000035439.63411.68 text/html Access to full text is restricted to subscribers. Bouwe Dijkstra bouwe.dijkstra@nottingham.ac.uk
oai:RePEc:kap:enreec:v:1:y:1991:i:1:p:1-152020-08-08RePEc:kap:enreec
article National accounts and environmental resources In the paper, optimal growth theory is used to derive the appropriate definition of the net national product concept, when there are environmental resources and environmental damage to take into account. The basic conclusions are that conventional defined NP should be corrected by deducting environmental damage and adding the value of the net change of all resources. Copyright Kluwer Academic Publishers 1991 National growth theory, national accounting systems, 1 1991 1 3 Environmental & Resource Economics 1 15 http://hdl.handle.net/10.1007/BF00305948 text/html Access to full text is restricted to subscribers. Karl-Göran Mäler
oai:RePEc:kap:enreec:v:43:y:2009:i:1:p:45-612020-08-08RePEc:kap:enreec
article Use of Contingent Valuation to Elicit Willingness-to-Pay for the Benefits of Developmental Health Risk Reductions Contingent valuation, Developmental effects, IQ, PCBs, QALY, Risk assessment, 1 2009 43 5 Environmental and Resource Economics 45 61 http://hdl.handle.net/10.1007/s10640-009-9267-7 text/html Access to full text is restricted to subscribers. Katherine Stackelberg Kvon@hsph.harvard.edu James Hammitt jkh@harvard.edu
oai:RePEc:kap:enreec:v:36:y:2007:i:1:p:35-552020-08-08RePEc:kap:enreec
article The Optimal Timing of Adoption of a Green Technology We study the optimal timing of adoption of a cleaner technology and its effects on the rate of growth of an economy in the context of an AK endogenous growth model. We show that the results depend upon the behavior of the marginal utility of environmental quality with respect to consumption. When it is increasing, we derive the capital level at the optimal timing of adoption. We show that this capital threshold is independent of the initial conditions on the stock of capital, implying that capital-poor countries tend to take longer to adopt. Also, country-specific characteristics, as the existence of high barriers to adoption, may lead to different capital thresholds for different countries. If the marginal utility of environmental quality decreases with consumption, a country should never delay adoption; the optimal policy is either to adopt immediately or, if adoption costs are “too high”, to never adopt. The policy implications of these results are discussed in the context of the international debate surrounding the environmental political agenda. Copyright Springer Science+Business Media, Inc. 2007 cost of adoption, growth, optimal timing of adoption, pollution, technology adoption, 033, 040, Q20, 1 2007 36 1 Environmental and Resource Economics 35 55 http://hdl.handle.net/10.1007/s10640-006-9045-8 text/html Access to full text is restricted to subscribers. Maria Cunha-e-Sá mcunhasa@fe.unl.pt Ana Reis
oai:RePEc:kap:enreec:v:40:y:2008:i:3:p:401-4232020-08-08RePEc:kap:enreec
article Safe Minimum Standards in Dynamic Resource Problems: Conditions for Living on the Edge of Risk Safe Minimum Standards, Optimal control, Critical zone, Threshold effects, Mixed risk spaces, C61, Q20, Q30, 3 2008 40 7 Environmental and Resource Economics 401 423 http://hdl.handle.net/10.1007/s10640-007-9162-z text/html Access to full text is restricted to subscribers. Michael Margolis Eric Nævdal eric.navdal@econ.uio.no
oai:RePEc:kap:enreec:v:42:y:2009:i:3:p:427-4282020-08-08RePEc:kap:enreec
article F.J. Hitzhusen (Ed.), Economic Valuation of River Systems 3 2009 42 3 Environmental and Resource Economics 427 428 http://hdl.handle.net/10.1007/s10640-008-9259-z text/html Access to full text is restricted to subscribers. Marije Schaafsma Marije.schaafsma@ivm.falw.vu.nl
oai:RePEc:kap:enreec:v:14:y:1999:i:3:p:365-3832020-08-08RePEc:kap:enreec
article Does Question Format Matter? Valuing an Endangered Species A three-way treatment design is used to compare contingent valuation response formats. Respondents are asked to value an endangered species (the red-cockaded woodpecker) and the restoration of its habitat following a natural disaster. For three question formats (open-ended, payment card, and double-bounded dichotomous choice), differences in survey response rates, item non-response rates, and protest bids are examined. Bootstrap techniques are used to compare means across formats and to explore differences in willingness to pay (WTP) distribution functions. Convergent validity is found in a comparison of mean WTP values, although some differences are apparent in the cumulative distribution functions. Differences across formats are also identified in item non-response rates and proportion of protest bids. Overall, the payment card format exhibits desirable properties relative to the other two formats. Copyright Kluwer Academic Publishers 1999 contingent valuation, endangered species, question format, red-cockaded woodpecker, 3 1999 14 10 Environmental and Resource Economics 365 383 http://hdl.handle.net/10.1023/A:1008320621720 text/html Access to full text is restricted to subscribers. Dixie Reaves dixie@vt.edu Randall Kramer Thomas Holmes
oai:RePEc:kap:enreec:v:59:y:2014:i:1:p:1-372020-08-08RePEc:kap:enreec
article A 4-Stated DICE: Quantitatively Addressing Uncertainty Effects in Climate Change We introduce a version of the DICE-2007 model designed for uncertainty analysis. DICE is a wide-spread deterministic integrated assessment model of climate change. Climate change, long-term economic development, and their interactions are highly uncertain. The quantitative analysis of optimal mitigation policy under uncertainty requires a recursive dynamic programming implementation of integrated assessment models. Such implementations are subject to the curse of dimensionality. Every increase in the dimension of the state space is paid for by a combination of (exponentially) increasing processor time, lower quality of the value or policy function approximations, and reductions of the uncertainty domain. The paper promotes a state-reduced, recursive dynamic programming implementation of the DICE-2007 model. We achieve the reduction by simplifying the carbon cycle and the temperature delay equations. We compare our model’s performance and that of the DICE model to the scientific AOGCM models emulated by MAGICC 6.0 and find that our simplified model performs equally well as the original DICE model. Our implementation solves the infinite planning horizon problem in an arbitrary time step. The paper is the first to carefully analyze the quality of the value function approximation using two different types of basis functions and systematically varying the dimension of the basis. We present the closed form, continuous time approximation to the exogenous (discretely and inductively defined) processes in DICE, and we present a numerically more efficient re-normalized Bellman equation that, in addition, can disentangle risk attitude from the propensity to smooth consumption over time. Copyright Springer Science+Business Media Dordrecht 2014 Climate change, Uncertainty, Integrated assessment , DICE, Dynamic programming, Risk aversion, Intertemporal substitution, MAGICC, Basis, Recursive utility, Q54, Q00, D90, C63, 1 2014 59 9 Environmental and Resource Economics 1 37 http://hdl.handle.net/10.1007/s10640-014-9776-x text/html Access to full text is restricted to subscribers. Christian Traeger traeger@berkeley.edu
oai:RePEc:kap:enreec:v:8:y:1996:i:1:p:97-1182020-08-08RePEc:kap:enreec
article Materials-product chains: Theory and an application to zinc and PVC gutters A framework is presented for the analysis of economic and environmental impacts of policies applied to materials-product (MP) chains. This is based on materials flows, product flows, costs, prices and optimal management of an MP chain. The main differences compared with other studies focusing on materials flows is that here the link between products or services and materials is explicitly dealt with. The framework is developed on the basis of materials balance conditions, production functions allowing for substitution, and recycling of both materials and products. After presenting theoretical MP chain-models and analytical results, an application to the problem of choosing between zinc and PVC gutters is discussed. Here optimal MP chain management decisions are presented for various policy and strategy scenarios. Copyright Kluwer Academic Publishers 1996 materials balance, recycling, substitution, economic modelling, environmental policy, 1 1996 8 7 Environmental & Resource Economics 97 118 http://hdl.handle.net/10.1007/BF00340655 text/html Access to full text is restricted to subscribers. Patricia Kandelaars Jeroen Bergh
oai:RePEc:kap:enreec:v:37:y:2007:i:1:p:63-752020-08-08RePEc:kap:enreec
article Wealth and sustainable development: the role of David Pearce Green net national product was thought to be one way of measuring sustainable income. However, David Pearce understood that a better measure of sustainable development was to look at what a generation is leaving in form of capital assets to later generations. In this article, his arguments and insights are highlighted against recent theoretical advances. Copyright Springer Science+Business Media, Inc. 2007 National product, Wealth, Sustainable development, Accounting prices, Social welfare, 1 2007 37 5 Environmental and Resource Economics 63 75 http://hdl.handle.net/10.1007/s10640-007-9111-x text/html Access to full text is restricted to subscribers. Karl-Göran Mäler karl@beijer.kva.se
oai:RePEc:kap:enreec:v:13:y:1999:i:4:p:435-4582020-08-08RePEc:kap:enreec
article Optimal Management of Multiple Renewable Resource Stocks: An Application to Minke Whales Most bioeconomic models of efficient renewable resource management are constructed for a single harvesting ground. A bioeconomic model is developed in this paper to study the optimal management of renewable resources that are found in spatially distinct harvesting grounds. The model is applied to Minke whale management. Important inter-regional substitution effects are shown to exist. In addition, comparison with previous studies shows that multiple stock management is necessary for efficient management. Finally, the current Minke whale moratorium is shown to be inefficient unless significant nonmarket values exist. Copyright Kluwer Academic Publishers 1999 bioeconomics, multiple stocks, humane values, Minke whales, Monte Carlo analysis, uncertainty, 4 1999 13 6 Environmental and Resource Economics 435 458 http://hdl.handle.net/10.1023/A:1008261710951 text/html Access to full text is restricted to subscribers. Richard Horan rhoran@econ.ag.gov James Shortle
oai:RePEc:kap:enreec:v:4:y:1994:i:5:p:495-5092020-08-08RePEc:kap:enreec
article Environmental accidents under moral hazard and limited firm liability We study optimal government policy when firms' operations involve a risk of a large environmental accident, firms do not have sufficient assets to cover such costs, and the risk is affected by firms' efforts which are unobservable to outsiders. When firms' profits and government revenues have equal weights in the social welfare function, a first best can be implemented and requires that the firm be subsidized heavily when operating with no accident, and all its assets confiscated in the event of an accident. With a lower weight on firm profits the solution is always second best, with lower subsidies to the firm, and a firm effort lower than at the first-best solution. When firm investments affect both the required accident-preventing effort for given risk and the work effort required for a given output, the first best never involves specific investment subsidies, while a second-best solution generally always does. Copyright Kluwer Academic Publishers 1994 Environmental accidents, moral hazard, environmental policy, 5 1994 4 10 Environmental & Resource Economics 495 509 http://hdl.handle.net/10.1007/BF00691925 text/html Access to full text is restricted to subscribers. Jon Strand
oai:RePEc:kap:enreec:v:63:y:2016:i:3:p:523-5442020-08-08RePEc:kap:enreec
article Controlling for the Effects of Information in a Public Goods Discrete Choice Model This paper develops a reduced form method of controlling for differences in information sets of subjects in public good discrete choice models, using stated preference data. The main contribution of our method comes from accounting for the effect of information provided during a survey on the mean and the variance of individual-specific scale parameters. In this way we incorporate both scale heterogeneity as well as observed and unobserved preference heterogeneity to investigate differences across and within information treatments. Our approach will also be useful to researchers who want to combine stated preference data sets while controlling for scale differences. We illustrate our approach using the data from a discrete choice experiment study of a biodiversity conservation program and find that the mean of individual-specific scale parameters and its variance in the sample is sensitive to the information set provided to the respondents. Copyright The Author(s) 2016 Information effects, Uncertainty, Discrete Choice modelling, Combined datasets, Q51, C51, D03, D83, D61, 3 2016 63 3 Environmental and Resource Economics 523 544 http://hdl.handle.net/10.1007/s10640-014-9847-z text/html Access to full text is restricted to subscribers. Mikołaj Czajkowski miq@wne.uw.edu.pl Nick Hanley ndh3@st-andrews.ac.uk Jacob LaRiviere jlarivi1@utk.edu
oai:RePEc:kap:enreec:v:61:y:2015:i:4:p:497-5162020-08-08RePEc:kap:enreec
article Setting Environmental Policy When Experts Disagree How can a decision-maker assess the potential of environmental policies when a group of experts provides divergent estimates on their effectiveness? To address this question, we propose and analyze a variant of the well-studied $$\alpha $$ α -maxmin model in decision theory. In our framework, and consistent to the paper’s empirical focus on renewable-energy R&D investment, experts’ subjective probability distributions are allowed to be action-dependent. In addition, the decision maker constrains the sets of priors to be considered via a parsimonious measure of their distance to a benchmark “average” distribution that grants equal weight to all experts. While our model is formally rooted in the decision-theoretic framework of Olszewski (Rev Econ Stud 74:567–595, 2007 ), it may also be viewed as a structured form of sensitivity analysis. We apply our framework to original data from a recent expert elicitation survey on solar energy. The analysis suggests that more aggressive investment in solar energy R&D is likely to yield significant dividends even, or rather especially, after taking expert ambiguity into account. Copyright the European Atomic Energy Community (EU-Euratom) 2015 Expert elicitation, Expert aggregation, Decision theory, Renewable energy R&D, C60, D81, Q42, Q48, 4 2015 61 8 Environmental and Resource Economics 497 516 http://hdl.handle.net/10.1007/s10640-014-9804-x text/html Access to full text is restricted to subscribers. Stergios Athanassoglou athanassoglou@gmail.com Valentina Bosetti valentina.bosetti@unibocconi.it
oai:RePEc:kap:enreec:v:54:y:2013:i:2:p:161-1782020-08-08RePEc:kap:enreec
article What Drives the International Transfer of Climate Change Mitigation Technologies? Empirical Evidence from Patent Data Technology transfer plays a key role in global efforts to reduce greenhouse gas emissions. In this paper, we characterize the factors that promote or hinder the international diffusion of climate-friendly technologies using detailed patent data from 96 countries for the period 1995–2007. The data provide strong evidence that lax Intellectual Property regimes have a strong and negative impact on the international diffusion of patented knowledge. Restrictions on international trade and foreign direct investment also hinder the diffusion of climate-friendly technologies. Surprisingly, local technological capabilities tend to discourage transfers. While broad indicators of technology capabilities are expected to facilitate transfers, this latter result stems from our technology-specific definition of local capabilities, which makes it possible to capture a substitution effect between local and foreign inventions. Copyright Springer Science+Business Media B.V. 2013 Climate change, Technology diffusion, Technology transfer, O33, O34, Q54, 2 2013 54 2 Environmental and Resource Economics 161 178 http://hdl.handle.net/10.1007/s10640-012-9592-0 text/html Access to full text is restricted to subscribers. Antoine Dechezleprêtre A.Dechezlepretre@lse.ac.uk Matthieu Glachant glachant@mines-paristech.fr Yann Ménière yann.meniere@mines-paristech.fr
oai:RePEc:kap:enreec:v:8:y:1996:i:1:p:75-952020-08-08RePEc:kap:enreec
article The economic costs of biological predation This paper developes a bioeconomic model to analyse the economic losses from the reduced harvesting of prey species resulting from an increase in the stock of a natural predator. Examples of large mammals creating economic damage are whales and African elephants. The economic losses depend critically on the actual management of the prey stock, although the three measures we develop are equal when the stock is managed so as to maximize the sustained economic rent from the prey species. Predation losses are illustrated by the case of the Northeastern Atlantic Minke whale, where the estimate of the average predation cost per whale in 1991–1992 is between $US 1780 and $US 2370, using Norwegian cost and earnings data. A ten percent stock increase is estimated to cause a loss of almost $US 19 million to the fishers of the prey species. If half of this cost were assigned to Norway it would be equivalent to 2.8 and 6.7 percent of the gross profits of the Norwegian cod and herring fisheries, respectively. Copyright Kluwer Academic Publishers 1996 bioeconomics, multispecies models, predation costs, Minke whale, 1 1996 8 7 Environmental & Resource Economics 75 95 http://hdl.handle.net/10.1007/BF00340654 text/html Access to full text is restricted to subscribers. Ola Flaaten Kenneth Stollery
oai:RePEc:kap:enreec:v:57:y:2014:i:3:p:367-3922020-08-08RePEc:kap:enreec
article The Effect of Feed-in Tariffs on Renewable Electricity Generation: An Instrumental Variables Approach While carbon taxes and other market-based instruments are widely regarded as optimal for climate mitigation, political constraints have prevented governments from using them. Instead, narrower instruments, including the feed-in tariff (FIT) for renewable electricity generation, have become popular. However, their causal effect on renewable electricity generation remains subject to uncertainty. We use instrumental variables to estimate the causal effect of FITs on renewable electricity generation in 26 industrialized countries, 1979–2005. We find that increasing the FIT by one U.S. cent (2000 constant prices) per kilowatt hour increases the percentage change in renewable electricity’s share of the total by 0.11 % points. All else constant, if a country implemented for a decade the sample mean FIT of three U.S. cents, the national share of renewable electricity would increase by 3.3 % points, which is more than the sample mean. In addition to demonstrating that the FIT is an effective way to increase renewable electricity generation, our approach lays the foundation for future studies of the causal effects of renewable energy policies. Copyright Springer Science+Business Media Dordrecht 2014 Feed-in tariffs, Renewable energy, Energy policy , Environmental economics, Energy economics, 3 2014 57 3 Environmental and Resource Economics 367 392 http://hdl.handle.net/10.1007/s10640-013-9684-5 text/html Access to full text is restricted to subscribers. Michael Smith Johannes Urpelainen ju2178@columbia.edu
oai:RePEc:kap:enreec:v:47:y:2010:i:2:p:261-2742020-08-08RePEc:kap:enreec
article Environmental Policy Instruments: Technology Adoption Incentives with Imperfect Compliance Environmental policy, Monitoring, Non-compliance, Technology adoption, K42, L51, Q28, 2 2010 47 10 Environmental and Resource Economics 261 274 http://hdl.handle.net/10.1007/s10640-010-9375-4 text/html Access to full text is restricted to subscribers. Carmen Arguedas carmen.arguedas@uam.es Eva Camacho camacho@eco.uji.es José Zofío jose.zofio@uam.es
oai:RePEc:kap:enreec:v:33:y:2006:i:4:p:533-5552020-08-08RePEc:kap:enreec
article Per Capita Carbon Dioxide Emissions: Convergence or Divergence? Understanding and considering the distribution of per capita carbon dioxide (CO 2 ) emissions is important in designing international climate change proposals and incentives for participation. I evaluate historic international emissions distributions and forecast future distributions to assess whether per capita emissions have been converging or will converge. I find evidence of convergence among 23 member countries of the Organisation for Economic Co-operation and Development (OECD), whereas emissions appear to be diverging for an 88-country global sample over 1960–2000. Forecasts based on a Markov chain transition matrix provide little evidence of future emissions convergence and indicate that emissions may diverge in the near term. I also review the shortcomings of environmental Kuznets curve regressions and structural models in characterizing future emissions distributions. Copyright Springer 2006 emissions distributions, environmental Kuznets curve, Markov transition matrix, O40, Q54, Q56, 4 2006 33 04 Environmental & Resource Economics 533 555 http://hdl.handle.net/10.1007/s10640-005-6160-x text/html Access to full text is restricted to subscribers. Joseph Aldy aldy@rff.org
oai:RePEc:kap:enreec:v:50:y:2011:i:4:p:559-5832020-08-08RePEc:kap:enreec
article Valuing Aircraft Noise: Stated Choice Experiments Reflecting Inter-Temporal Noise Changes from Airport Relocation Aircraft noise, Choice experiments, Environmental valuation, Stated choice, Stated preference, Willingness to pay, Willingness to accept compensation, 4 2011 50 12 Environmental and Resource Economics 559 583 http://hdl.handle.net/10.1007/s10640-011-9482-x text/html Access to full text is restricted to subscribers. Sotirios Thanos S.Thanos@hw.ac.uk Mark Wardman Abigail Bristow
oai:RePEc:kap:enreec:v:21:y:2002:i:3:p:221-2392020-08-08RePEc:kap:enreec
article Shiftable Externalities: A Market Solution In this paper we propose a regulatory scheme for what has become known as ‘shiftable’ externalities (‘Not In My Backyard’ type garbage location problemswhere the externality is characterized by the absence of jointness in supply).The scheme facilitates the establishment of a market for the externality, and it isfeasible for a wider class of regulation problems and more information efficientthan the other regulatory schemes that have been proposed for this type ofexternality. Finally, we show that it is possible to decentralize the participationdecision so as to take account of verification costs. Copyright Kluwer Academic Publishers 2002 incentive mechanisms, shiftable externalities, 3 2002 21 3 Environmental and Resource Economics 221 239 http://hdl.handle.net/10.1023/A:1014544516120 text/html Access to full text is restricted to subscribers. Lars Hansen lgh@akf.dk
oai:RePEc:kap:enreec:v:29:y:2004:i:4:p:483-5062020-08-08RePEc:kap:enreec
article The Environmental Kuznets Curve and Flow versus Stock Pollution: The Neglect of Future Damages In this paper we offer a possible explanation for the empirical finding that the pollution-income relationship (PIR) for flow pollutants is an environmental Kuznets curve (EKC), i.e. inverted-U shaped, but that the PIR for stock pollutants is monotonically rising. We analyse an overlapping generations model with two pollutants: The flow pollutant causes immediate damages, but the stock pollutant harms the environment only in the future. Hence, a succession of myopic governments lets stock pollution grow with income. In contrast, the flow pollutant follows an EKC whose downturn might be caused by the neglect of future damages and by ever rising stock pollution: Without the stock pollutant the PIR for the flow pollutant can increase monotonically. We also show that the turning point of the EKC for the flow pollutant lies at lower levels of income and of flow pollution if stock pollution is high and harmful. This casts doubts on most empirical EKC studies because they assume that the turning point occurs at the same income level in all countries. However, it is consistent with recent empirical findings that the income level at the turning point of the EKC varies across countries. Copyright Kluwer Academic Publishers 2004 abatement, economic growth, environmental Kuznets curve, flow and stock pollution, myopia, 4 2004 29 12 Environmental and Resource Economics 483 506 http://hdl.handle.net/10.1007/s10640-004-1046-x text/html Access to full text is restricted to subscribers. Christoph Lieb lieb@ecoplan.ch
oai:RePEc:kap:enreec:v:63:y:2016:i:2:d:10.1007_s10640-015-9909-x2020-08-08RePEc:kap:enreec
article Erratum to: Impact Evaluation of Forest Conservation Programs: Benefit-Cost Analysis, Without the Economics 2 2016 63 2 10 Environmental and Resource Economics 409 409 http://link.springer.com/10.1007/s10640-015-9909-x text/html Abstract Jeffrey R. Vincent Jeff.Vincent@duke.edu Duke University
oai:RePEc:kap:enreec:v:9:y:1997:i:3:p:259-2742020-08-08RePEc:kap:enreec
article Assessing effects of mitigation strategies for global climate change with an intertemporal model of the U.S. forest and agriculture sectors A model of product and land markets in U.S. forest and agricultural sectors is used to examine the private forest management, land use, and market implications of carbon sequestration policies implemented in a “least social cost” fashion. Results suggest: policy-induced land use changes may generate compensating land use shifts through markets; land use shifts to meet policy targets need not be permanent; implementation of land use and management changes in a smooth or regular fashion over time may not be optimal; and primary forms of adjustment to meet carbon policy targets involve shifting of land from agriculture to forest and more intensive forest management in combinations varying with the policy target. Copyright Kluwer Academic Publishers 1997 afforestation, climate change, intersectoral, land-use change, 3 1997 9 4 Environmental & Resource Economics 259 274 http://hdl.handle.net/10.1007/BF02441399 text/html Access to full text is restricted to subscribers. Ralph Alig Darius Adams Bruce McCarl J. Callaway Steven Winnett
oai:RePEc:kap:enreec:v:3:y:1993:i:6:p:545-5612020-08-08RePEc:kap:enreec
article Testing whether waterfowl hunting benefits increase with greater water deliveries to wetlands The change in waterfowl hunting benefits due to an increase in water deliveries to the levels required for biologically optimal wildlife refuge management at California's San Joaquin Valley National Wildlife Refuges are estimated with the Travel Cost Method, using both ordinary least squares and Poisson count data estimators. To test whether these increases were statistically significant, the Krinsky and Robb technique was used to find confidence intervals around the consumer surplus point estimates. The increases in consumer surplus were found to be statistically significant in 5 of the 6 refuges based on OLS regression estimates and in all 6 refuges using Poisson count data regression estimates. In addition, a comparison of the marginal value of an acre-foot of water in consumptive recreational use versus agriculture use is made, with the finding that the marginal value of water in waterfowl hunting was greater than the marginal value of water in agriculture for one of the six refuges. Copyright Kluwer Academic Publishers 1993 Consumer surplus, travel cost method, count data, Poisson, water deliveries, waterfowl hunting, 6 1993 3 12 Environmental & Resource Economics 545 561 http://hdl.handle.net/10.1007/BF00364059 text/html Access to full text is restricted to subscribers. Joseph Cooper John Loomis
oai:RePEc:kap:enreec:v:64:y:2016:i:4:d:10.1007_s10640-015-9895-z2020-08-08RePEc:kap:enreec
article Using Taxes to Deter Illegal Fishing in ITQ Systems Abstract We study the effects of different tax schemes used in fisheries management in combination with an individual transferable quota system. We focus on the effects of taxes on equilibrium quota prices and on violations under the assumption that enforcement to induce compliance is imperfect and costly. The use of taxes is motivated by the regulator’s need to recover costs for enforcement activities. We propose the use of a tax on the price of the processed products based on its impact on violations and the information that is required to implement it. We also show that this tax has a double pay-off for enforcement because it reduces the demand for illegal fishing and increases revenue for enforcement activities without producing a deadweight loss in the quota market. We present an application of our model to the case of the red shrimp fishery in Chile. In our simulation example, a tax of 7 % on the price of fish exports could sufficiently reduce harvest demand and generate enough funding to completely eliminate quota violations, which, in the absence of taxes, can be more than 100 % of the total allowable catch. At the same time, this tax could increase the equilibrium quota price by 19 %. Taxes, Enforcement, Illegal fishing, Individual transferable quotas 4 2016 64 8 9 Environmental and Resource Economics 709 724 L51 Q22 Q28 http://link.springer.com/10.1007/s10640-015-9895-z text/html Abstract Hugo Salgado hsalgado@utalca.cl Universidad de Talca Carlos Chávez Universidad de Concepción Victoria 471, Barrio Universitario
oai:RePEc:kap:enreec:v:2:y:1992:i:4:p:373-3982020-08-08RePEc:kap:enreec
article Adoption of improved irrigation and drainage reduction technologies under limiting environmental conditions Modern irrigation technologies have been suggested as a means of conserving scarce water and reducing environmental pollution caused by irrigated agriculture. This paper applies an economic model of technology selection that provides a general framework to analyzing adoption of irrigation technologies under various environmental conditions. Data from the San Joaquin Valley of California is used to verify the theoretical relationships. Results suggest key variables to be considered by policy makers concerned with adoption of modern irrigation technologies. Among these variables are crop prices, water technology costs, farm organization characteristics, and the environmental conditions of the farm or the field. Policy implications were discussed and analyzed. Copyright Kluwer Academic Publishers 1992 Adoption, irrigation technology, environment, drainage pollution, policy, 4 1992 2 7 Environmental & Resource Economics 373 398 http://hdl.handle.net/10.1007/BF00304968 text/html Access to full text is restricted to subscribers. Ariel Dinar Mark Campbell David Zilberman
oai:RePEc:kap:enreec:v:24:y:2003:i:4:p:287-2892020-08-08RePEc:kap:enreec
article Editorial Introduction: Economics of Sustainable Energy and Agriculture 4 2003 24 4 Environmental and Resource Economics 287 289 http://hdl.handle.net/10.1023/A:1023624008189 text/html Access to full text is restricted to subscribers. Ekko van Ierland Alfons Lansink
oai:RePEc:kap:enreec:v:39:y:2008:i:3:p:283-2962020-08-08RePEc:kap:enreec
article Endowment effect theory, prediction bias and publicly provided goods: an experimental study Endowment effect, Experiment, Loss aversion, Publicly Provided goods, H40, H43, Q51, C92, 3 2008 39 3 Environmental and Resource Economics 283 296 http://hdl.handle.net/10.1007/s10640-007-9126-3 text/html Access to full text is restricted to subscribers. Ivo Bischoff ivo.bischoff@wirtschaft.uni-giessen.de
oai:RePEc:kap:enreec:v:35:y:2006:i:1:p:59-872020-08-08RePEc:kap:enreec
article Impacts of Novel Protein Foods on Sustainable Food Production and Consumption: Lifestyle Change and Environmental Policy We analyse the impacts of a change in consumers’ preference for Novel Protein Foods (NPFs), i.e. a lifestyle change with respect to meat consumption, and the impacts of environmental policies e.g. tradable emission permits for greenhouse gases (GHGs) or an EU ammonia (NH 3 ) emission bound per hectare. For our analysis we use a global applied general equilibrium (AGE) model that includes consumers’ lifestyle change, different production systems, emissions from agricultural sectors, and an emission permits system. Our study leads to the following conclusions. Firstly, more consumption of NPFs assists in reducing global agricultural emissions of methane (CH 4 ), nitrous oxides (N 2 O) and NH 3 . However, because of international trade, emission reduction does not necessarily occur in the regions where more NPFs are consumed. Secondly, through lifestyle change of the ‘rich’, the emission reduction is not substantial because more ‘intermediate’ consumers will increase their meat consumption. Finally, for the same environmental target the production structure changes towards less intensive technologies and more grazing under environmental policy than under lifestyle change. Copyright Springer Science+Business Media, Inc. 2006 applied general equilibrium models, emissions, lifestyles, meat, Novel Protein Foods, C68, D12, D58, Q17, Q33, 1 2006 35 9 Environmental and Resource Economics 59 87 http://hdl.handle.net/10.1007/s10640-006-9006-2 text/html Access to full text is restricted to subscribers. Xueqin Zhu xzhu@feweb.vu.nl Lia Wesenbeeck Ekko Ierland
oai:RePEc:kap:enreec:v:42:y:2009:i:4:p:509-5342020-08-08RePEc:kap:enreec
article A Spatial Hedonic Approach to Assess the Impact of Swine Production on Residential Property Values Spatial hedonics, Spatial autocorrelation, Housing values, Hog farms, Pigs, Odor, Confined animal feeding operations, CAFO, 4 2009 42 4 Environmental and Resource Economics 509 534 http://hdl.handle.net/10.1007/s10640-008-9221-0 text/html Access to full text is restricted to subscribers. Jungik Kim jungik419@yahoo.com Peter Goldsmith pgoldsmi@uiuc.edu http://www.nsrl.uiuc.edu/
oai:RePEc:kap:enreec:v:51:y:2012:i:3:p:431-4522020-08-08RePEc:kap:enreec
article Input-Orientated Data Envelopment Analysis Framework for Measuring and Decomposing Economic, Environmental and Ecological Efficiency: An Application to OECD Agriculture Cumulative exergy analysis, Ecological efficiency, Economic efficiency, Environmental efficiency, Performance indicator, Nutrient efficiency, Agricultural sustainability, Q51, Q56, Q10, Q12, 3 2012 51 3 Environmental and Resource Economics 431 452 http://hdl.handle.net/10.1007/s10640-011-9506-6 text/html Access to full text is restricted to subscribers. Viet-Ngu Hoang vincent.hoang@qut.edu.au Mohammad Alauddin m.alauddin@uq.edu.au
oai:RePEc:kap:enreec:v:13:y:1999:i:2:p:209-2182020-08-08RePEc:kap:enreec
article Corporate Lobbying, Regulatory Conduct and the Porter Hypothesis Michael Porter, the influential Harvard management guru, has promoted the idea that compliance with stricter environmental regulations can afford ‘secondary’ benefits to firms through improved product design, innovation, corporate morale and in other ways. Once these secondary benefits are factored, the net cost of compliance is argued to be lower than conventionally thought and may even be negative. Whilst environmental economists have rejected the ‘Porter Hypothesis’ as being based on excessively optimistic expectations of the likely size of such secondary benefits the underlying ideas do enjoy significant credence in the business community. In the context of a lobbying model of regulatory policy-making we argue that the EPA should change the way it conducts regulatory policy to take account of Porter's views – even if it knows those views to be misguided. The model serves to illustrate the more general point that ‘fashions’ in management thinking can be expected to impact the optimal conduct of regulatory policy. Copyright Kluwer Academic Publishers 1999 corporate beliefs, environmental regulation, lobbying, 2 1999 13 3 Environmental and Resource Economics 209 218 http://hdl.handle.net/10.1023/A:1008323700888 text/html Access to full text is restricted to subscribers. Catherine Liston-Heyes a.heyes@rhbnc.ac.uk. Anthony Heyes
oai:RePEc:kap:enreec:v:33:y:2006:i:2:p:199-2212020-08-08RePEc:kap:enreec
article On the Dynamics of Recycling and Natural Resources We study the dynamic impact of recycling through its effect on the production set of the economy and its relationship with natural resources. The contribution of renewable and recyclable resources for sustainability is studied. Although in the short run recycling may alleviate resource scarcity, in the long run it is not enough to compensate for the exhaustibility of non-renewable resources and the possibility of obtaining non-decreasing output paths crucially depends on the extent to which production rests on renewable resources. Furthermore, recycling interacts with natural resource growth, surprisingly not always favoring sustainability. The Production and Recycling Function is a generalization of the traditional production function, providing an integrated view of regular production and recycling and representing the production set of the economy when a recycling technology is available. Copyright Springer 2006 natural resources, optimal control, production, recycling, technology, Q20, Q30, C61, 2 2006 33 02 Environmental & Resource Economics 199 221 http://hdl.handle.net/10.1007/s10640-005-3107-1 text/html Access to full text is restricted to subscribers. Francisco André fjandgar@upo.es Emilio Cerdá
oai:RePEc:kap:enreec:v:2:y:1992:i:6:p:551-5672020-08-08RePEc:kap:enreec
article Ecosystems, externalities, and economies This paper incorporates an ecosystem model into a model of a simple economy. The decisionmaking agents in the ecosystem are individual organisms aggregated to the species level. A species may provide utility directly to humans, or it may provide utility indirectly because it is used either as a raw material in goods fabrication or as sustenance for other species. We describe a comparative static equilibrium of the ecosystem where species' demands for other species are equal to the supplies of those other species, and energy is conserved. The ecosystem is then embedded in the economy so that the effects of human intervention can be traced through both the ecosystem and the economy. Human intervention creates ecosystem externalities such that ecosystem equilibria are shifted and the new equilibria affect the utility or the production processes of other humans. This framework allows us to describe in principle which ecosystem services can be efficiently usurped by humans, which waste flows can be efficiently allowed into ecosystems, and which ecosystem organisms and physical attributes can be efficiently maintained. Copyright Kluwer Academic Publishers 1992 Ecosystems, externalities, economies, sustainable development, 6 1992 2 11 Environmental & Resource Economics 551 567 http://hdl.handle.net/10.1007/BF00330283 text/html Access to full text is restricted to subscribers. Thomas Crocker John Tschirhart
oai:RePEc:kap:enreec:v:34:y:2006:i:4:p:517-5332020-08-08RePEc:kap:enreec
article Capital Accumulation and Resource Depletion: A Hartwick Rule Counterfactual How much produced capital would resource-abundant countries have today if they had actually followed the Hartwick Rule (invest resource rents in other assets) over the last 30 years? We employ time series data on investment and rents on exhaustible resource extraction for 70 countries to answer this question. The results are striking: Venezuela, Trinidad and Tobago, and Gabon would all have as much produced capital as South Korea, while Nigeria would have five times its current level. A specific rule for sustainability – maintain positive constant genuine investment – is shown to lead to unbounded consumption. Copyright Springer 2006 Hartwick rule, exhaustible resources, sustainable development, Q01, Q32, Q56, 4 2006 34 8 Environmental and Resource Economics 517 533 http://hdl.handle.net/10.1007/s10640-006-0011-2 text/html Access to full text is restricted to subscribers. Kirk Hamilton khamilton@worldbank.org Giovanni Ruta Liaila Tajibaeva
oai:RePEc:kap:enreec:v:54:y:2013:i:1:p:63-772020-08-08RePEc:kap:enreec
article Enforcing Compliance with Environmental Agreements in the Absence of Strong Institutions: An Experimental Analysis This paper uses laboratory experiments to evaluate the performance of a deposit-refund mechanism used to enforce compliance with voluntary public-good commitments made in the absence of strong regulatory institutions. With this mechanism agents decide whether to join an agreement and pay a deposit prior to making their contribution decisions. If an agreement receives sufficient membership to form, members then make their contribution decisions and compliant members are refunded their deposits. If an agreement does not form, then deposits are immediately refunded and a standard voluntary contribution game is played. We find that the deposit-refund mechanism achieves nearly full efficiency when agreements require full participation, but is far less effective, and in some cases disruptive, when agreements require only partial participation. As the mechanism does not require the existence of strong sanctioning institutions, it is particularly suited for enforcing compliance with international environmental agreements. Copyright Springer Science+Business Media B.V. 2013 Enforcing compliance, Environmental agreements, Experimental economics, Deposit refund, International environmental agreements, D02, Q50, H41, H87, C90, 1 2013 54 1 Environmental and Resource Economics 63 77 http://hdl.handle.net/10.1007/s10640-012-9581-3 text/html Access to full text is restricted to subscribers. Todd Cherry cherrytl@appstate.edu David McEvoy mcevoydm@appstate.edu
oai:RePEc:kap:enreec:v:1:y:1991:i:4:p:353-3722020-08-08RePEc:kap:enreec
article Participatory institutions: The context of common and private property resources Participation is the initiation and continuance of an active process by which beneficiary groups influence the direction and execution of development activity. In the context of resource management participatory institutions often present an alternative when the market and/or the state fail to maintain resource stocks at desirable levels. This paper presents two case-studies of the emergence of participatory institutions and builds up analytical models that explain the process of their evolution in an inter-temporal framework. It is shown that the evolution, sustenance and replication of participation and its impact on levels of resource conservation depends on (a) the nature of the links between common and private property resources, (b) the possibility of taking advantage of scale economies, and finally (c) the distributional rules and arrangements. Copyright Kluwer Academic Publishers 1991 Common property resources, private property resources, participatory institutions, 4 1991 1 12 Environmental & Resource Economics 353 372 http://hdl.handle.net/10.1007/BF00377492 text/html Access to full text is restricted to subscribers. Kanchan Chopra Gopal Kadekodi
oai:RePEc:kap:enreec:v:32:y:2005:i:1:p:161-1812020-08-08RePEc:kap:enreec
article Experienced Utility as a Standard of Policy Evaluation This paper explores the possibility of basing economic appraisal on the measurement of experienced utility (utility as hedonic experience) rather than decision utility (utility as a representation of preference). Because of underestimation of the extent of hedonic adaptation to changed circumstances and because of the “focusing illusion” (exaggerating the importance of the current focus of one’s attention), individuals’ forecasts of experienced utility are subject to systematic error. Such errors induce preference anomalies which the experienced utility approach might circumvent. The “day reconstruction method” of measuring experienced utility is considered as a possible alternative to stated preference methods. Copyright Springer 2005 contingent valuation, day reconstruction method, experienced utility, focusing illusion, 1 2005 32 09 Environmental and Resource Economics 161 181 http://hdl.handle.net/10.1007/s10640-005-6032-4 text/html Access to full text is restricted to subscribers. Daniel Kahneman Robert Sugden r.sugden@uea.ac.uk
oai:RePEc:kap:enreec:v:40:y:2008:i:2:p:285-2982020-08-08RePEc:kap:enreec
article Willingness to Pay and the Cost of Commitment: An Empirical Specification and Test Commitment cost, Contigent valuation, Option value, Willingness to pay, Q26, C42, D60, 2 2008 40 6 Environmental and Resource Economics 285 298 http://hdl.handle.net/10.1007/s10640-007-9153-0 text/html Access to full text is restricted to subscribers. Jay Corrigan corrigan@kenyon.edu Catherine Kling ckling@iastate.edu Jinhua Zhao jzhao@iastate.edu
oai:RePEc:kap:enreec:v:15:y:2000:i:4:p:403-4202020-08-08RePEc:kap:enreec
article Green Business and Blue Angels This paper presents a model of a monopolist'svoluntary overcompliance with legal environmentalstandards under asymmetric information about thefirm's environmental impacts. The key assumptions are:the existence of quality premia for environmentalsoundness, a positive but imperfect degree ofmonitoring, and adaptive consumer expectations.Conditions necessary for overcompliance to arise in aprofit-maximizing equilibrium are derived. The effectsof a third-party eco-labeling system are analyzed. Itis shown that the existence of an independent labelingauthority increases the likelihood of overcomplianceto be profit-maximizing. Moreover, firms might have anincentive to lobby for the introduction of such asystem. The effect of consumers' risk preferences andan instrument for preventing ``Greenwash'' (companieslying about their environmental performance) is alsodiscussed. Copyright Kluwer Academic Publishers 2000 asymmetric information, eco-labeling, environmental friendliness, 4 2000 15 4 Environmental and Resource Economics 403 420 http://hdl.handle.net/10.1023/A:1008303614250 text/html Access to full text is restricted to subscribers. Stefanie Kirchhoff skirchho@zeus.uniandes.edu.co
oai:RePEc:kap:enreec:v:43:y:2009:i:1:p:1-102020-08-08RePEc:kap:enreec
article Introduction to the Special Issue: Things We Do and Don’t Understand About the Household and the Environment Household, Environmental economics, Unitary model, Children, Stated preference, C920, D130, D80, 1 2009 43 5 Environmental and Resource Economics 1 10 http://hdl.handle.net/10.1007/s10640-009-9284-6 text/html Access to full text is restricted to subscribers. Alistair Munro alistair-munro@grips.ac.jp
oai:RePEc:kap:enreec:v:55:y:2013:i:2:p:217-2432020-08-08RePEc:kap:enreec
article Adaptation and Mitigation in Long-term Climate Policy The paper analytically explores the optimal allocation of investments into mitigation and environmental adaptation against climate change damages at a macroeconomic level. The economic-environmental model is formulated as a social planner problem where adaptation and abatement investments are separate decision variables. The existence of a unique steady state is proven. A comparative static analysis of optimal investments leads to essential implications for associated long-term environmental policies. It is shown that the optimal policy mix between adaptation and mitigation is lower for countries with higher economic efficiency for all applicable parameter ranges. Data calibration and numerical simulations are provided to estimate practical validity of theoretical outcomes. Copyright Springer Science+Business Media Dordrecht 2013 Environmental adaptation, Mitigation, Optimal investment, Long-term climate policy, 2 2013 55 6 Environmental and Resource Economics 217 243 http://hdl.handle.net/10.1007/s10640-012-9623-x text/html Access to full text is restricted to subscribers. Thierry Bréchet thierry.brechet@uclouvain.be Natali Hritonenko nahritonenko@pvamu.edu Yuri Yatsenko yyatsenko@hbu.edu
oai:RePEc:kap:enreec:v:37:y:2007:i:1:p:181-2102020-08-08RePEc:kap:enreec
article Incentive and informational properties of preference questions Surveys are frequently used by businesses and governments to elicit information about the public’s preferences. They have become the most common way to gather preference information regarding goods, that are not (or are not yet) bought or sold in markets. In this paper we apply the standard neoclassical economic framework to generate predictions about how rational agents would answer such survey questions, which in turn implies how such survey data should be interpreted. In some situations, the standard economic model would be expected to have no predictive power. For situations where it does have predictive power, we compare different survey formats with respect to: (a) the information that the question itself reveals to the respondent, (b) the strategic incentives the respondent faces in answering the question, and (c) the information revealed by the respondent’s answer. Copyright Springer Science+Business Media, Inc. 2007 Contingent valuation, Stated preference surveys, Incentive compatibility, 1 2007 37 5 Environmental and Resource Economics 181 210 http://hdl.handle.net/10.1007/s10640-007-9124-5 text/html Access to full text is restricted to subscribers. Richard Carson rearson@ucsd.edu Theodore Groves
oai:RePEc:kap:enreec:v:8:y:1996:i:2:p:157-1812020-08-08RePEc:kap:enreec
article Capturing the pharmaceutical value of biodiversity in a developing country The conservation of biodiversity is increasingly being defined as a process made up of three components—saving, studying and sustainably using biodiversity. If the conservation of process is expanded to incorporate the need for both the protection of biodiversity—either in situ or ex situ—and the generation of valuable information about biodiversity, an important issue is the correct balance of investment in these two types of activities. This paper explores this issue by focusing on efforts in a developing country to capture the pharmaceutical potential of biodiversity and species information. A model of biodiversity investment choice is developed, and an analysis of royalty returns to effort in biodiversity protection, taxonomic information and the collection of biotic samples is conducted based on data from Costa Rica. The results suggest that although a country can be adequately compensated for its investment in the generation of taxonomic information, it is unlikely that pharmaceutical prospecting alone will cover the high opportunity costs of biodiversity protection. Copyright Kluwer Academic Publishers 1996 biodiversity, pharmaceutical prospecting, developing country, conservation, taxonomic information, protection, biotic sample, royalty, 2 1996 8 9 Environmental & Resource Economics 157 181 http://hdl.handle.net/10.1007/BF00357362 text/html Access to full text is restricted to subscribers. Edward Barbier Bruce Aylward
oai:RePEc:kap:enreec:v:23:y:2002:i:1:p:105-1312020-08-08RePEc:kap:enreec
article Provision Point Mechanisms and Field Validity Tests of Contingent Valuation Past field validity tests of contingent valuation have relied on voluntary contribution mechanisms to elicit actual willingness to pay, and may overestimate hypothetical bias because of free riding in the actual contributions. This paper argues that provision point mechanisms are a preferred alternative for field validity tests of contingent valuation because they increase the proportion of demand revealed in cases in which public goods can be provided in a step function. The results of a contingent valuation validity study of participation in a green electricity pricing program that uses a provision point mechanism are reported, and hypothetical open-ended and dichotomous choice responses are compared to actual participation. Calibration of hypothetical responses is also explored. Copyright Kluwer Academic Publishers 2002 contingent valuation, experimental economics, provision point mechanism, validity, 1 2002 23 9 Environmental and Resource Economics 105 131 http://hdl.handle.net/10.1023/A:1020242907259 text/html Access to full text is restricted to subscribers. Gregory Poe glp2@cornell.edu Jeremy Clark Daniel Rondeau William Schulze
oai:RePEc:kap:enreec:v:47:y:2010:i:2:p:151-1722020-08-08RePEc:kap:enreec
article The Windy Commons? Wind power, Property rights, Renewable energy, Spatial externalities, 2 2010 47 10 Environmental and Resource Economics 151 172 http://hdl.handle.net/10.1007/s10640-010-9369-2 text/html Access to full text is restricted to subscribers. Daniel Kaffine dkaffine@mines.edu Christopher Worley
oai:RePEc:kap:enreec:v:41:y:2008:i:1:p:71-872020-08-08RePEc:kap:enreec
article Demand for Environmental Quality: An Empirical Analysis of Consumer Behavior in Sweden Household demand, Environmental services, Income elasticities, Engel curves, D12, H41, Q26, 1 2008 41 9 Environmental and Resource Economics 71 87 http://hdl.handle.net/10.1007/s10640-007-9181-9 text/html Access to full text is restricted to subscribers. Tarek Ghalwash tarek.ghalwash@econ.umu.se
oai:RePEc:kap:enreec:v:38:y:2007:i:2:p:189-2112020-08-08RePEc:kap:enreec
article Royalty reform and illegal reporting of harvest volumes under alternative penalty schemes Illegal logging, Royalty progression, Timber concessions, Deforestation, D81, H26, Q23, 2 2007 38 10 Environmental and Resource Economics 189 211 http://hdl.handle.net/10.1007/s10640-006-9070-7 text/html Access to full text is restricted to subscribers. Gregory Amacher gamacher@vt.edu Erkki Koskela erkki.koskela@helsinki.fi Markku Ollikainen markku.ollikainen@helsinki.fi
oai:RePEc:kap:enreec:v:13:y:1999:i:2:p:125-1412020-08-08RePEc:kap:enreec
article Efficient Environmental Taxation Under Worker-Firm Bargaining We study an economy with free firm entry and unemployment due to firm-worker bargaining over each firm's surplus, and where firms cause pollution that can be reduced by initial investments. An uncompensated increase in the pollution tax reduces pollution but increases unemployment, implying a tradeoff between the two. When tax revenues are used to subsidize either firms' hiring or investments, employment may also increase, creating a ‘double dividend’ from the pollution tax. A pollution tax increase used to subsidize current employment is always less effective than a hiring subsidy, and is totally ineffective when subsidies equal pollution tax revenues for each individual firm. We show that the (hypothetical) pollution tax implementing the first-best solution exceeds the Pigouvian tax. The second-best tax exceeds this first-best tax when we have a double dividend, and is below it when we do not. Copyright Kluwer Academic Publishers 1999 hiring subsidy, pollution tax, unemployment, 2 1999 13 3 Environmental and Resource Economics 125 141 http://hdl.handle.net/10.1023/A:1008202802250 text/html Access to full text is restricted to subscribers. Jon Strand
oai:RePEc:kap:enreec:v:11:y:1998:i:1:p:61-782020-08-08RePEc:kap:enreec
article Strategic Environmental Policy Under Incomplete Information This paper introduces incomplete information into recent analyses of strategic environmental policy. It is shown how asymmetric information between planners and producers affects national incentives to impose strategic environmental standards on domestic industries in international oligopolistic competition. Relative to the full-information case, incomplete information is likely to mitigate allocative distortions originating from strategic behaviour. A countervailing effect, tending to raise distortion, is however revealed from the analysis. This effect is absent when governments intervene in free trade through direct production subsidies. The results suggest that incentives to capture foreign rents are less reduced due to private information, when environmental standards, rather than direct production subsidies, are the strategic instrument. Copyright Kluwer Academic Publishers 1998 international trade, imperfect competition, strategic environmental behaviour, asymmetric information, 1 1998 11 1 Environmental and Resource Economics 61 78 http://hdl.handle.net/10.1023/A:1008299628367 text/html Access to full text is restricted to subscribers. Niels Nannerup NIN@HDC.HHA.DK
oai:RePEc:kap:enreec:v:57:y:2014:i:3:p:323-3432020-08-08RePEc:kap:enreec
article Natural Resources, Institutional Quality, and Economic Growth in China The resource curse has been mainly studied using cross-country samples. In this paper we analyze a cross-province sample from one country: China. We focus on the interplay between resource abundance, institutional quality, and economic growth, using two different measures of resource abundance (a stock: resource reserves; and a flow: resource revenues), and employing various econometric approaches including varying coefficient models. We find that resource abundance has a positive effect on economic growth at the provincial level in China between 1990 and 2008, an effect that depends nonlinearly on institutional quality (1995 confidence in courts). The ‘West China Development Drive’ policy, initiated in 2000, caused substantial changes, which we investigate through a comparative panel-data analysis. Copyright Springer Science+Business Media Dordrecht 2014 Natural resource curse, Economic growth, China , Institutional quality, Resource abundance, Policy change, Functional effect, O11, O13, O53, C21, Q0, Q33, 3 2014 57 3 Environmental and Resource Economics 323 343 http://hdl.handle.net/10.1007/s10640-013-9673-8 text/html Access to full text is restricted to subscribers. Kan Ji Jan Magnus magnus@uvt.nl Wendun Wang
oai:RePEc:kap:enreec:v:30:y:2005:i:3:p:345-3672020-08-08RePEc:kap:enreec
article Incentives for Technological Development: BAT Is BAD This paper examines the effect of environmental regulation on a firm’s incentives to invest in developing cheaper (clean-up) technologies in a model where consumers are willing to pay for environmentally clean technologies. It focuses on two types of policies: a BAT based policy and a commitment policy. In the former policy, the standard is based on the best available technology (BAT) where the regulator re-optimizes environmental regulation in response to new technologies. However, under a commitment policy, the regulator announces a regulation and sticks to it irrespective of the firm’s adopted technology. The paper finds that cleaner technologies are not adopted if the regulator announces a BAT based policy. A commitment policy not only leads to positive investment in research and development but is also welfare improving. Copyright Springer 2005 best available technology, commitment policy, environmental regulation, environmentally aware consumers, innovation, technological development, welfare, 3 2005 30 03 Environmental & Resource Economics 345 367 http://hdl.handle.net/10.1007/s10640-004-4223-z text/html Access to full text is restricted to subscribers. Sangeeta Bansal shray@nda.vsnl.net.in Shubhashis Gangopadhyay
oai:RePEc:kap:enreec:v:2:y:1992:i:1:p:61-772020-08-08RePEc:kap:enreec
article Global warming: Efficient policies in the case of multiple pollutants This article investigates efficient policies against global warming in the case of multiple greenhouse gases. In a dynamic optimization model conditions for an efficient combination of abatement activities are derived. It is shown how this solution can be decentralised by a system of emission charges. Since the determination of the charge rates should be based on a long time horizon, the impact of sequential planning methods is explored. The parameters of the model are specified with respect to the main greenhouse gases (carbon dioxide, methane, nitrous oxide, chlorofluorocarbons) and a scenario for an efficient charge system is calculated. For the main emission sources the tax base and the likely range of tax rates is derived. The results illustrate that efficient policy measures against global warming will not only affect the use of fossil fuels but will also impose a considerable burden on modern agriculture specialising in livestock and in intensive farming techniques. Copyright Kluwer Academic Publishers 1992 Environmental policy, greenhouse effect, carbon equivalent taxation, sequential planning, 1 1992 2 1 Environmental and Resource Economics 61 77 http://hdl.handle.net/10.1007/BF00324689 text/html Access to full text is restricted to subscribers. Peter Michaelis
oai:RePEc:kap:enreec:v:61:y:2015:i:4:p:559-5752020-08-08RePEc:kap:enreec
article Quota Setting and Enforcement Choice in a Shared Fishery We model the exploitation of an international (shared stock) fishery which is managed using national quotas determined as agreed shares of an annual total allowable catch (TAC). Given its annual quota, each country employs enforcement effort in order to maximise national social benefits while securing an acceptable degree of quota compliance by its fishing fleet. We examine the determination of the TAC which maximises the present value of the fishery, given the agreed quota shares and each country’s harvest and enforcement best-response functions. Inefficiency may derive not only from non-optimal TAC shares but also from the countries’ implicit preferences for compliance. We illustrate these findings with a set of numerical simulations. Finally, we consider the incentives for countries to bid up the TAC during international negotiations. Copyright Springer Science+Business Media Dordrecht 2015 Shared fish stocks, Transboundary resources, Enforcement, Compliance, Quota management, 4 2015 61 8 Environmental and Resource Economics 559 575 http://hdl.handle.net/10.1007/s10640-014-9806-8 text/html Access to full text is restricted to subscribers. Aaron Hatcher aaron.hatcher@port.ac.uk Linda Nøstbakken linda.nostbakken@nhh.no
oai:RePEc:kap:enreec:v:49:y:2011:i:3:p:387-4032020-08-08RePEc:kap:enreec
article Environmental Tax in a Green Market Ecological awareness, Emission tax, Environmental quality, Green market, Vertical differentiation, D62, H21, L13, Q58, 3 2011 49 7 Environmental and Resource Economics 387 403 http://hdl.handle.net/10.1007/s10640-010-9438-6 text/html Access to full text is restricted to subscribers. Dorothée Brécard dorothee.brecard@univ-nantes.fr
oai:RePEc:kap:enreec:v:26:y:2003:i:1:p:57-722020-08-08RePEc:kap:enreec
article Measuring Irrigation Water Efficiency with a Stochastic Production Frontier 1 2003 26 9 Environmental and Resource Economics 57 72 http://hdl.handle.net/10.1023/A:1025625402762 text/html Access to full text is restricted to subscribers. G. Karagiannis V. Tzouvelekas A. Xepapadeas
oai:RePEc:kap:enreec:v:34:y:2006:i:4:p:471-4922020-08-08RePEc:kap:enreec
article A Comparison of Emission Taxes and Permit Markets for Controlling Correlated Externalities This paper provides an answer to the question: Are emission taxes an efficient and self-enforcing mechanism to control correlated externality problems? By “correlated externalities” we mean multiple pollutants that are jointly produced by a single source but cause differentiated regional and global externalities. By “self-enforcing” we mean a mechanism that accounts for the endogeneity that exists between competing jurisdictions in the setting of environmental policy within a federation of regions. This mechanism incorporates sequential decision making among the jurisdictions and therefore determines an equilibrium based on the concept of subgame perfection. We find that, unlike joint domestic and international tradable permit markets, joint emission taxes and a hybrid scheme of permits and taxes are neither efficient nor self-enforcing. Copyright Springer 2006 correlated externalities, hybrid scheme, joint emission taxes, joint permits, C72, D62, D78, H41, H77, Q28, 4 2006 34 8 Environmental and Resource Economics 471 492 http://hdl.handle.net/10.1007/s10640-006-0010-3 text/html Access to full text is restricted to subscribers. Arthur Caplan acaplan@econ.usu.edu
oai:RePEc:kap:enreec:v:39:y:2008:i:4:p:357-3772020-08-08RePEc:kap:enreec
article The stability likelihood of an international climate agreement Climate change modelling, International environmental agreements, Non-cooperative game theory, Uncertainty, C79, H87, Q54, 4 2008 39 4 Environmental and Resource Economics 357 377 http://hdl.handle.net/10.1007/s10640-007-9130-7 text/html Access to full text is restricted to subscribers. Rob Dellink rob.dellink@wur.nl Michael Finus Niels Olieman
oai:RePEc:kap:enreec:v:9:y:1997:i:3:p:309-3212020-08-08RePEc:kap:enreec
article The conditions for ecological sustainable development in the context of a double-limited selfpurification model of an aggregate water resource Based on the classical biological Monod model a so called double-limited self-purification model working in an aggregate water resource is constructed. From this model we derive a stationary selfpurification function and three conditions for ecological sustainable development. Copyright Kluwer Academic Publishers 1997 Monod model, oxygen saturation, selfpurification, 3 1997 9 4 Environmental & Resource Economics 309 321 http://hdl.handle.net/10.1007/BF02441402 text/html Access to full text is restricted to subscribers. Klaus Fiedler
oai:RePEc:kap:enreec:v:1:y:1991:i:3:p:313-3322020-08-08RePEc:kap:enreec
article Towards a sustainable and efficient use of manure in agriculture: The Dutch case Rapid increases in livestock production in the Netherlands have changed manure from a valuable input into a mere waste product. This is especially true for the southern and eastern parts of the country, where specialized pig and poultry farms have concentrated on sandy soils. As these farms generally own very little land, they largely depend on imported feedstuffs. As a consequence, manure is applied to the land in such large quantities that serious environmental problems have resulted: (1) eutrophication of surface water by phosphate emissions; (2) pollution of groundwater by nitrate emissions; and (3) acidification by ammonia emissions. In the last few years the Dutch government has developed a manure policy to counteract these effects. Our analysis of that policy has revealed at least three fundamental defects, which render the manure policy ineffective and inefficient. In this paper proposals are made to remove the defects in current manure policy. Much attention is paid to the problem of designing a mixture of policy instruments which is both effective as well as efficient in limiting the environmental problems caused by manure. It is shown that the use of financial incentives in regulation can substantially improve the efficiency of the manure policy. Finally, the main economic consequences of the proposed policy are examined for the public sector as well as for the agricultural sector. Copyright Kluwer Academic Publishers 1991 Manure problem, nutrient policy, nutrient surplus, regulatory levy, sustainability, agriculture, intensive livestock sector, acidification, groundwater pollution, eutrophication, 3 1991 1 9 Environmental & Resource Economics 313 332 http://hdl.handle.net/10.1007/BF00367923 text/html Access to full text is restricted to subscribers. Frank Dietz Nico Hoogervorst
oai:RePEc:kap:enreec:v:11:y:1998:i:2:p:119-1342020-08-08RePEc:kap:enreec
article The Political Economy of Clean Air Legislation 2 1998 11 3 Environmental and Resource Economics 119 134 http://hdl.handle.net/10.1023/A:1008235531092 text/html Access to full text is restricted to subscribers. Mark Burkey Garey Durden
oai:RePEc:kap:enreec:v:30:y:2005:i:1:p:23-332020-08-08RePEc:kap:enreec
article The Effect of Respondent Experience/Knowledge in the Elicitation of Contingent Values: An Investigation of Convergent Validity, Procedural Invariance and Reliability Tests of convergent validity and procedural invariance were used to investigate whether individuals lacking direct experience with a commodity can provide valid responses to contingent-valuation questions eliciting ex post use values. Convergent validity between samples with and without experience was shown to hold for dichotomous-choice responses, but not for open-ended responses. Copyright Springer 2005 contingent valuation, dichotomous choice, experience, open-ended, validity, use values, 1 2005 30 1 Environmental & Resource Economics 23 33 http://hdl.handle.net/10.1007/s10640-004-0758-2 text/html Access to full text is restricted to subscribers. Daniel Mccollum dmccollum@fs.fed.us Kevin Boyle
oai:RePEc:kap:enreec:v:41:y:2008:i:4:p:465-4782020-08-08RePEc:kap:enreec
article Willingness to Pay for Forest Property Rights and the Value of Increased Property Rights Security WTP, Forestry, Vietnam, Property rights, Security, 4 2008 41 12 Environmental and Resource Economics 465 478 http://hdl.handle.net/10.1007/s10640-008-9202-3 text/html Access to full text is restricted to subscribers. Martin Linde-Rahr Martin.Linde-Rahr@economics.gu.se
oai:RePEc:kap:enreec:v:34:y:2006:i:1:p:1-62020-08-08RePEc:kap:enreec
article Frontiers in Stated Preferences Methods: An Introduction 1 2006 34 05 Environmental and Resource Economics 1 6 http://hdl.handle.net/10.1007/s10640-005-4818-z text/html Access to full text is restricted to subscribers. Wiktor Adamowicz Vic.Adamowicz@Ualberta.ca J. Deshazo
oai:RePEc:kap:enreec:v:13:y:1999:i:2:p:169-1852020-08-08RePEc:kap:enreec
article Exhaustible Resources, Monopolistic Competition, and Endogenous Growth One of the central analytical findings of the growth literature is that continuous growth is possible even in an economy with exhaustible resources. Based on this result, this paper addresses the question of whether different equilibrium trajectories which lead to a balanced growth path are possible within an endogenous growth model with incomplete competition. Although the Solow-Stiglitz condition is violated due to a monopolistic sector, we nevertheless demonstrate that steady growth in per capita consumption is possible under the condition that the rate of entry of new monopolists exceeds that of the average monopolist's decline in output. As a necessary but not sufficient condition for indeterminacies in a growing economy, this paper demonstrates that the partial production elasticity of capital must be smaller than that of the exhaustible resource. Copyright Kluwer Academic Publishers 1999 endogenous growth, exhaustible resources, indeterminacies of growth paths, monopolistic competition, 2 1999 13 3 Environmental and Resource Economics 169 185 http://hdl.handle.net/10.1023/A:1008201811142 text/html Access to full text is restricted to subscribers. Christian Scholz Georg Ziemes
oai:RePEc:kap:enreec:v:65:y:2016:i:1:d:10.1007_s10640-016-0015-52020-08-08RePEc:kap:enreec
article Incentives and Effects of No-Lose Targets to Include Non-Annex I Countries in Global Emission Reductions Abstract We analyze the potential of no-lose targets used as an instrument to integrate non-Annex I countries in global emission reduction efforts. We set up a game-theoretical model to derive the participation conditions for a non-Annex I country and evaluate the effect of a no-lose target on the reduction of global emissions. Our analyses show that meaningful contributions from non-Annex I countries are possible, but their contribution to global emission reductions is limited and depends on several factors. Ambitious targets for the Annex I countries are a precondition. Further determining factors are differences in the abatement potentials between Annex I and non-Annex I countries, and market power on the certificate market. Nonetheless, in contrast to other funding mechanisms, no-lose targets, rather than requiring additional funding, can actually reduce costs for the Annex I countries. No-lose targets, Profitability, Non-Annex I countries, Post-Kyoto, Emissions trading 1 2016 65 9 6 Environmental and Resource Economics 81 107 http://link.springer.com/10.1007/s10640-016-0015-5 text/html Abstract Vicki Duscha v.duscha@isi.fraunhofer.de Fraunhofer Institute for Systems and Innovation Research Karl-Martin Ehrhart Karlsruhe Institute of Technology, Institute ETS
oai:RePEc:kap:enreec:v:25:y:2003:i:3:p:377-3942020-08-08RePEc:kap:enreec
article Fishing Technology and Optimal Distribution of Harvest Rates This paper examines the problem of the optimal management of a joint-ownership fishing exploitation, where agents use different fishing gears. We consider a model in which the fishing activity may affect resource growth, not only through the harvest function but also through the natural growth rate of the resource. This allows us to capture the fact that some fishing gears alter the natural growth rate of the resource. We find that when the natural growth of the resource is altered by the fishing technology, the optimal stock is not independent of how harvest quotas are distribute among the agents. As a result, a fishing policy that firstly determines the optimum stock and, secondly, decides how to distribute the harvest among the different agents, will not be efficient. We also analyze the joint determination of optimal stock and harvest quotas and show that positive harvest quotas will only be optimal when countries are characterized by certain asymmetries. Copyright Kluwer Academic Publishers 2003 fishing gear selectivity, fisheries regulation, harvest quotas, 3 2003 25 7 Environmental and Resource Economics 377 394 http://hdl.handle.net/10.1023/A:1024478107203 text/html Access to full text is restricted to subscribers. Marta Escapa jepesgam@bs.ehu.es RaÚl Prellezo rprellezo@suk.azti.es
oai:RePEc:kap:enreec:v:49:y:2011:i:2:p:243-2612020-08-08RePEc:kap:enreec
article Emissions Trading with Updated Allocation: Effects on Entry/Exit and Distribution Emissions trading, Allocation of quotas, Quota prices, H21, Q28, 2 2011 49 6 Environmental and Resource Economics 243 261 http://hdl.handle.net/10.1007/s10640-010-9432-z text/html Access to full text is restricted to subscribers. Knut Rosendahl Halvor Storrøsten halvor.storrosten@ssb.no
oai:RePEc:kap:enreec:v:3:y:1993:i:5:p:437-4552020-08-08RePEc:kap:enreec
article Technological change under residual risk regulation: The case of coke ovens in the U.S. steel industry An engineering-economic model is used within a dynamic setting to determine the least cost mix of investment and import activities as the U.S. steel industry faces successively tighter controls on coke oven emissions over the next 10 years. In response to Maximum Achievable Control Technology (MACT) standards proposed for 1995, U.S. steel producers would likely export their toxic pollution by importing 6 million tons of coke per year. About 4 million tons of coke oven capacity is retrofit and about 1 million tons of annual coke consumption is replaced by new iron technologies, such as Corex. The Lowest Achievable Emission Rate (LAER) standards proposed for 1998 roughly double the coke oven retirements estimated to occur under MACT. Coke imports also are substantial but are no higher than under MACT because the additional time allows the industry to invest in more coke-saving blast furnaces and in new less toxic coke-making technologies, such as the Jewell process. The LAER standards in conjunction with higher capital costs, however, force coke imports to more than 8 million tons per year and sharply increase imports of semi-finished steel. Such a situation could exacerbate existing disputes on international steel trade. Copyright Kluwer Academic Publishers 1993 Technological change, toxic pollution, residual risk, 5 1993 3 10 Environmental & Resource Economics 437 455 http://hdl.handle.net/10.1007/BF00310247 text/html Access to full text is restricted to subscribers. Timothy Considine Graham Davis Donita Marakovits
oai:RePEc:kap:enreec:v:3:y:1993:i:1:p:23-392020-08-08RePEc:kap:enreec
article Energy taxation in Southern Europe: The case of Portugal We investigate whether or not the imposition of a common EC energy-tax will penalize more the poorer Southern European economies and if this will harm convergence at the EC level. We start by surveying briefly the existing studies and empirical evidence. Then we exploit the results obtained when using the macroeconometric HERMES models to simulate the introduction of an energy-tax. Unfortunately, as we only have HERMES results for one Southern European economy, Portugal, our conclusions are limited. Finally, we investigate convergence in Europe and the effects of energy taxation on convergence. We conclude that energy taxation will harm growth all over the EC, penalizing more one of the less developed countries, Portugal, and having most probably adverse effects on convergence. Copyright Kluwer Academic Publishers 1993 Energy taxation, convergence, Europe, Portugal, 1 1993 3 2 Environmental & Resource Economics 23 39 http://hdl.handle.net/10.1007/BF00338318 text/html Access to full text is restricted to subscribers. Leonor Modesto
oai:RePEc:kap:enreec:v:45:y:2010:i:1:p:91-1122020-08-08RePEc:kap:enreec
article Convergent Validity of Revealed and Stated Recreation Behavior with Quality Change: A Comparison of Multiple and Single Site Demands Recreation demand, Travel cost method, Convergent validity, Revealed preference, Stated preference, 1 2010 45 1 Environmental and Resource Economics 91 112 http://hdl.handle.net/10.1007/s10640-009-9307-3 text/html Access to full text is restricted to subscribers. John Whitehead whiteheadjc@appstate.edu Daniel Phaneuf Christopher Dumas Jim Herstine Jeffery Hill Bob Buerger
oai:RePEc:kap:enreec:v:39:y:2008:i:4:p:433-4462020-08-08RePEc:kap:enreec
article Do protest responses to a contingent valuation question and a choice experiment differ? Attitude towards paying, Contingent valuation, Choice experiment, Forest biodiversity, Protest beliefs, Protest responses, H41, Q2, Q51, 4 2008 39 4 Environmental and Resource Economics 433 446 http://hdl.handle.net/10.1007/s10640-007-9134-3 text/html Access to full text is restricted to subscribers. Jürgen Meyerhoff meyerhoff@imup.tu-berlin.de Ulf Liebe
oai:RePEc:kap:enreec:v:13:y:1999:i:2:p:143-1682020-08-08RePEc:kap:enreec
article Joint Implementation under the Second Sulfur Protocol: Analysis and Simulation The purpose of the paper is to analyze the possibility of introducing a system of transferable discharge permits (TDP) to develop the joint implementation procedure conceived in the Second Sulfur Protocol. The analysis is performed considering not only the European countries that have agreed emission reductions in the Protocol, but also a group of non-signing countries that could possibly abate their emissions and alleviate the reduction burden agreed by the former, presumably receiving certain compensation from them in return. The theoretic elements of the system are analyzed and then a simulation software – the program ATLAS – is developed and applied to study the effects of choosing among the possible implementation parameters. In contrast to other simulation programs developed with a similar aim, ATLAS can simulate multilateral permit trades, which are closer than bilateral ones to the concept of joint implementation conceived in the Protocol. The use of this program anticipates that the amount of feasible and profitable transfers would be much higher if a set of European countries which are not Parties to the Protocol were allowed to take part in the system as permit sellers. Copyright Kluwer Academic Publishers 1999 acid deposition, cost-effectiveness, emission trading, Europe, simulation models, trading rules, transferable discharge permits, 2 1999 13 3 Environmental and Resource Economics 143 168 http://hdl.handle.net/10.1023/A:1008206210117 text/html Access to full text is restricted to subscribers. Fernando Rodríguez ferrodri@gugu.usal.es
oai:RePEc:kap:enreec:v:26:y:2003:i:4:p:575-6022020-08-08RePEc:kap:enreec
article Managing Systems with Non-convex Positive Feedback We study here optimal management of dynamic ecological systemsthat exhibit a destabilizing positive feedback. The prototypeexample is that of a shallow lake in which phosphorous loadingplaced by anthropogenic activities (fertilizers for farmingand gardening) is stored in sediments until a critical levelis reached after which there is a destabilizing return to thewater – the tradeoff between farming interests and lake qualitygenerates an optimal control problem. We show that in such systems, there may be a variety of local optima and associatedbasins of attraction wherein the optimal path may depend onstarting state (phosphorous stock). We characterize the variouspossible optimal behaviors and identify the ambiguities thatcan only be resolved by choice of functional form. Copyright Kluwer Academic Publishers 2003 basins of attraction, dynamic optimization, lake ecology, non-convex dynamics, positive feedback, 4 2003 26 12 Environmental and Resource Economics 575 602 http://hdl.handle.net/10.1023/B:EARE.0000007350.11040.e3 text/html Access to full text is restricted to subscribers. W.A. Brock D. Starrett Davstarret@aol.com
oai:RePEc:kap:enreec:v:3:y:1993:i:2:p:129-1512020-08-08RePEc:kap:enreec
article Tradable emission rights and strategic interaction The use of tradable emission rights as environmental policy instruments may affect the conditions for strategic interaction between regulated firms and thus have implications for competition policy. This paper presents an analysis of how, and under what conditions, emission rights can be used strategically by oligopolistic firms for predatory and exclusionary purposes. Copyright Kluwer Academic Publishers 1993 Tradable emission rights, imperfect competition, oligopoly, strategic interaction, predation, 2 1993 3 4 Environmental & Resource Economics 129 151 http://hdl.handle.net/10.1007/BF00338781 text/html Access to full text is restricted to subscribers. Nils-Henrik Mørch von der Fehr
oai:RePEc:kap:enreec:v:2:y:1992:i:1:p:33-592020-08-08RePEc:kap:enreec
article Are there environmental limits to cost benefit analysis? This paper considers the problem areas found in applying cost-benefit analysis (CBA) to projects involving environmental costs or benefits. This is particularly relevant given recent moves by the UK government to include environmental valuations in CBA exercises, and in other related appraisal activities, following the publication of the Pearce Report. The paper argues that a major problem lies in placing monetary values on non-market goods. The paper also addresses the problems of (i) differences between citizen and consumer values; (ii) complexity of ecosystems; (iii) irreversibility and uniqueness; and (iv) intergenerational equity and discounting. The extent to which CBA is an institution open to capture is also discussed. Copyright Kluwer Academic Publishers 1992 Cost-benefit analysis, environmental valuation, discount rate, sustainable development, 1 1992 2 1 Environmental and Resource Economics 33 59 http://hdl.handle.net/10.1007/BF00324688 text/html Access to full text is restricted to subscribers. Nick Hanley
oai:RePEc:kap:enreec:v:2:y:1992:i:1:p:19-322020-08-08RePEc:kap:enreec
article Ill-behaviour of transformation-frontiers with environmental quality versus pollution If one looks at environmental quality N as a renewable natural resource (with its own natural dynamics) which is changed by emissions Z, then one gets a better understanding of the shape of the damage function. In the case of a logistic growth dynamics one obtains a well-shaped transformation frontier N(Z), even in a two-species natural dynamics. For a more general natural interaction in the framework of a prey-predator model one obtains the possibilities of a cusp catastrophe which makes the transformation frontier N(Z) ill-shaped for the standard arguments of economists and their most favoured environmental policy instruments. Copyright Kluwer Academic Publishers 1992 Environmental quality, multi-species systems, transformation frontier, 1 1992 2 1 Environmental and Resource Economics 19 32 http://hdl.handle.net/10.1007/BF00324687 text/html Access to full text is restricted to subscribers. Wolfgang Ströbele
oai:RePEc:kap:enreec:v:10:y:1997:i:3:p:207-2212020-08-08RePEc:kap:enreec
article A Learning Design for Reducing Hypothetical Bias in the Contingent Valuation Method Over the last few years a great deal of research has focussed on hypothetical bias in value estimates obtained with the contingent valuation (CV) method and on means for ameliorating if not eliminating such bias. To date, efforts to eliminate hypothetical bias have relied on calibration techniques or on word-smithing of one kind or another to induce subjects to provide responses to hypothetical questions that mimic responses made by subjects facing actual payments in the valuation experiment. This paper introduces a different approach for eliminating hypothetical bias. A design for a CV survey format is presented which provides subjects with the opportunity to “learn” how the CV institution works. Sequential referenda are conducted where respondents gain experience in CV settings by participating in both hypothetical and real referenda. The logic of this Learning Design is a straightforward application of the trials process used in experimental economics. We demonstrate that the Learning Design is effective in eliminating hypothetical bias in surveys concerning donations to two different public goods. Copyright Kluwer Academic Publishers 1997 contingent valuation, hypothetical bias, experimental economics, 3 1997 10 10 Environmental and Resource Economics 207 221 http://hdl.handle.net/10.1023/A:1026423201797 text/html Access to full text is restricted to subscribers. David Bjornstad Ronald Cummings Laura Osborne prcllo@langate.gsu.edu
oai:RePEc:kap:enreec:v:64:y:2016:i:4:d:10.1007_s10640-015-9889-x2020-08-08RePEc:kap:enreec
article Climate Change and Breakthrough Technologies: The Role of Markets Abstract I analyze whether self-enforcing international technological agreements to develop and adopt a breakthrough technology can greatly improve aggregate welfare if an international market for the technology is created. I assume that the technology is a private international good and countries can form two international consortiums: (1) a producing consortium that chooses whether to develop, adopt and sell the technology and (2) a consuming consortium that chooses whether to buy and adopt the technology. The ownership of the technology allows the creation of a market system that can solve the free-rider problem. I show that if the producing consortium has the bargaining power, the technology can always be developed and fully adopted and all gains from cooperation can be realized. If the bargaining power is shared between the consortiums, the aggregate welfare greatly improves and the technology can almost be fully adopted when the gains are sufficiently large. International environmental agreements, Game theory, Breakthrough technology, International market, Climate change 4 2016 64 8 4 Environmental and Resource Economics 597 617 http://link.springer.com/10.1007/s10640-015-9889-x text/html Abstract Armando Zavaleta armando-zavaleta@uiowa.edu The University of Iowa
oai:RePEc:kap:enreec:v:48:y:2011:i:2:p:269-2862020-08-08RePEc:kap:enreec
article Protecting Ecosystems and Alleviating Poverty with Parks and Reserves: ‘Win-Win’ or Tradeoffs? Ecosystems, Poverty, Protected areas, Impacts, Program evaluation, Econometrics, Costa Rica, 2 2011 48 2 Environmental and Resource Economics 269 286 http://hdl.handle.net/10.1007/s10640-010-9408-z text/html Access to full text is restricted to subscribers. Paul Ferraro pferraro@gsu.edu Merlin Hanauer mhanauer1@gsu.edu
oai:RePEc:kap:enreec:v:34:y:2006:i:2:p:211-2272020-08-08RePEc:kap:enreec
article Market Power with Interdependent Demand: Sale of Emission Permits and Natural Gas from Russia With implementation of the Kyoto Protocol, Russia will most likely be able to exert market power in the emission permit market. But, as Russia is also a big exporter of fossil fuels, the incentives to boost the permit price may be weak. However, a significant share of Russia’s fossil fuel exports is natural gas. If a high permit price boosts the demand for natural gas through substitution from more polluting fuels and thus increase gas profits, this may increase the incentives to exert monopoly power in the permit market. Moreover, a large fossil fuel exporter may use its market position to influence the effective demand for permits. Hence, the relationship between permit income and fossil fuels exports runs in both directions. In this article, we explore the interdependence between the revenues from permit and fossil fuel exports both theoretically and numerically. A computable general equilibrium model suggests the fact that Russia as a big gas exporter has small effect on the incentives to exert monopoly power in the permit market. Moreover, Russia’s monopoly power in the permit market has a small, but non-negligible impact on the optimal level of Russian gas exports. Copyright Springer 2006 climate policy, emission permits, market power, natural gas, Q4, D58, L12, Q28, Q48, 2 2006 34 06 Environmental & Resource Economics 211 227 http://hdl.handle.net/10.1007/s10640-005-6206-0 text/html Access to full text is restricted to subscribers. Cathrine Hagem Steffen Kallbekken steffen.kallbekken@cicero.uio.no Ottar Mæstad Hege Westskog
oai:RePEc:kap:enreec:v:39:y:2008:i:2:p:139-1592020-08-08RePEc:kap:enreec
article Optimal management of a eutrophied coastal ecosystem: balancing agricultural and municipal abatement measures Eutrophication control, Nutrient abatement, Endogenous regime switches, Environmental policy, 2 2008 39 2 Environmental and Resource Economics 139 159 http://hdl.handle.net/10.1007/s10640-007-9099-2 text/html Access to full text is restricted to subscribers. Marita Laukkanen marita.laukkanen@mtt.fi Anni Huhtala anni.huhtala@mtt.fi
oai:RePEc:kap:enreec:v:37:y:2007:i:2:p:361-3762020-08-08RePEc:kap:enreec
article Trade Policy and Natural Resource Use: The Case for a Quantitative Restriction This paper presents a simple way for countries to reap the benefits of trade liberalization without exacerbating problems of overexploitation of natural resources. In the context of a Ricardo–Viner dynamic trade model, it is shown that when a binding quantitative restriction regulates extraction of a natural resource, free trade is optimal. This is true even if the quantitative restriction is not optimal. In contrast, in the presence of a suboptimal tax (including a zero tax in the special case of open access) on the use of natural resources, trade liberalization is not necessarily welfare improving. Copyright Springer Science+Business Media, Inc. 2007 environmental regulations, natural resources, open access, quantitative restriction, tax, trade liberalization, second-best, 2 2007 37 6 Environmental and Resource Economics 361 376 http://hdl.handle.net/10.1007/s10640-006-9030-2 text/html Access to full text is restricted to subscribers. Susana Ferreira susana.ferreira@ucd.ie
oai:RePEc:kap:enreec:v:52:y:2012:i:3:p:369-3932020-08-08RePEc:kap:enreec
article Is Voluntary Pollution Abatement in the Absence of a Carrot or Stick Effective? Evidence from Facility Participation in the EPA’s 33/50 Program Toxic releases inventory, Voluntary pollution abatement, GMM, Dynamic panel, Q53, Q58, L60, 3 2012 52 7 Environmental and Resource Economics 369 393 http://hdl.handle.net/10.1007/s10640-011-9533-3 text/html Access to full text is restricted to subscribers. Martina Vidovic mvidovic@rollins.edu Neha Khanna nkhanna@binghamton.edu
oai:RePEc:kap:enreec:v:40:y:2008:i:4:p:467-4872020-08-08RePEc:kap:enreec
article Market Power in Emissions Trading Markets Ruled by a Multiple Unit Double Auction: Further Experimental Evidence Double Auction, Emissions trading, Experimental economics, Market power, C91, Q53, Q28, 4 2008 40 8 Environmental and Resource Economics 467 487 http://hdl.handle.net/10.1007/s10640-007-9165-9 text/html Access to full text is restricted to subscribers. Bodo Sturm sturm@zew.de
oai:RePEc:kap:enreec:v:44:y:2009:i:1:p:85-1062020-08-08RePEc:kap:enreec
article Adoption of Pollution Prevention Techniques: The Role of Management Systems and Regulatory Pressures Environmental management, Toxic releases, Total Quality Management, O32, O38, Q2, 1 2009 44 9 Environmental and Resource Economics 85 106 http://hdl.handle.net/10.1007/s10640-009-9263-y text/html Access to full text is restricted to subscribers. Madhu Khanna khanna1@uiuc.edu George Deltas deltas@uiuc.edu Donna Harrington djramire@uvm.edu
oai:RePEc:kap:enreec:v:1:y:1991:i:3:p:271-2872020-08-08RePEc:kap:enreec
article Europe '92. Decentralizing environmental policy in the single market The creation of the EC's internal market by the end of 1992 appears to necessitate a harmonization of environmental policies in the European Community. Against this background, the paper analyzes the options for decentralizing environmental policy in Europe and indicates some limitations of this approach. It is shown that, in the case of stationary sources, a harmonization is not required whereas, in the case of international spillovers and global environmental systems, a decentralization of policies is possible if countries can agree on international diffusion norms or national emission quantities, respectively. A harmonization seems to be unavoidable if product norms have to be applied, e.g. in the case of pollutants in consumption goods. Generally, however, price instruments should be used wherever possible, since they allow for a regional differentiation of environmental qualities without segmenting European markets. Copyright Kluwer Academic Publishers 1991 Environmental policy, European Community, 3 1991 1 9 Environmental & Resource Economics 271 287 http://hdl.handle.net/10.1007/BF00367921 text/html Access to full text is restricted to subscribers. Horst Siebert
oai:RePEc:kap:enreec:v:48:y:2011:i:4:p:679-6942020-08-08RePEc:kap:enreec
article Livestock as Insurance and Social Status: Evidence from Reindeer Herding in Norway Pastoralism, Social status, Uncertainty, 4 2011 48 4 Environmental and Resource Economics 679 694 http://hdl.handle.net/10.1007/s10640-010-9421-2 text/html Access to full text is restricted to subscribers. Anne Johannesen anneborge@svt.ntnu.no Anders Skonhoft Anders.skonhoft@svt.ntnu.no
oai:RePEc:kap:enreec:v:49:y:2011:i:1:p:79-992020-08-08RePEc:kap:enreec
article Economic Growth and the Diffusion of Clean Technologies: Explaining Environmental Kuznets Curves The paper provides a theoretical explanation for the inverted U-shaped relation between pollution and income often found in empirical research (Environmental Kuznets Curve). We model the transition in the pollution pattern as a change in general purpose technologies and investigate how it interferes with economic growth driven by quality improvements. We provide an analytical foundation for the claim that the rise and decline of pollution can be explained by endogenous innovations, policy-induced technology shifts, and intrasectoral changes. Once environmental degradation becomes too severe, regulation is introduced by which society forces the economy to make a transition to cleaner production. Copyright Springer Science+Business Media B.V. 2011 Environmental Kuznets curve, General purpose technology, Growth, Intrasectoral shifts, Q20, O41, Q56, 1 2011 49 5 Environmental and Resource Economics 79 99 http://hdl.handle.net/10.1007/s10640-010-9425-y text/html Access to full text is restricted to subscribers. Sjak Smulders j.a.smulders@uvt.nl Lucas Bretschger lbretschger@ethz.ch Hannes Egli hannes.egli@hslu.ch
oai:RePEc:kap:enreec:v:3:y:1993:i:4:p:359-3792020-08-08RePEc:kap:enreec
article The U.S. Environmental policy experience: A critique with Suggestions for the European Community This paper recites much of the history of U.S. environmental policy, covering air quality, water quality, hazardous wastes, monitoring and enforcement, integration of environmental considerations into general economic planning, and the issue of federal-state relations. Policies are criticized in terms of excessive cost and lack of effective enforcement, but successful and innovative practices also are identified, especially the use of tradable discharge permits and productive state-federal relationships. Suggestions for European Community policy formulation are made. Copyright Kluwer Academic Publishers 1993 Environmental policy, air quality, water quality, hazardous wastes, monitoring, enforcement, federal-state relations, 4 1993 3 8 Environmental and Resource Economics 359 379 http://hdl.handle.net/10.1007/BF00418817 text/html Access to full text is restricted to subscribers. Charles Howe
oai:RePEc:kap:enreec:v:4:y:1994:i:3:p:295-3042020-08-08RePEc:kap:enreec
article Pollution standards vs charges under uncertainty Conventional analysis of pollution control policy under uncertainty does not properly account for the potential cost effectiveness difference between standards and charges, thus drawing misleading conclusions for the case of inefficient standards. Correcting for this anomaly, the following conclusions can be drawn. When uncertainty involves the position of the marginal damage cost schedule, rather than policy indifference, a charge is always superior to an inefficient standard. When uncertainty is about the position of the marginal control cost schedule, policy indifference may occur, but if it does it must be the case that the slope of marginal damage cost exceeds that of marginal control cost. Copyright Kluwer Academic Publishers 1994 3 1994 4 6 Environmental & Resource Economics 295 304 http://hdl.handle.net/10.1007/BF00692330 text/html Access to full text is restricted to subscribers. Peter Tisato
oai:RePEc:kap:enreec:v:11:y:1998:i:3:p:459-4722020-08-08RePEc:kap:enreec
article Poverty, Income Distribution and Policy Making This paper deals with the key distributional issues arising from the regulation of the environment and the management of natural resources. The paper is divided into a section dealing with poverty and a section dealing with broader income distribution effects. Although there is much discussion of the linkages of poverty to environmental degradation, empirical studies establishing these linkages are few. The relationship is critically dependent on the institutional structures in the countries concerned and how they respond to changing environmental pressures. On the broader distributional impacts, the papers focusses on the analysis of ganiers and losers from environmental regulations. The analysis is complex because the direct incidence is not the same as the final incidence. Much of the work has looked only at the former. In addition, the political economy of regulation needs to pay greater attention to impacts on key and vulnerable groups; more so than can be done by looking at broad income bands. Copyright Kluwer Academic Publishers 1998 environment, incone distribution, poverty, 3 1998 11 4 Environmental and Resource Economics 459 472 http://hdl.handle.net/10.1023/A:1008209712672 text/html Access to full text is restricted to subscribers. A. Markandya hssam@bath.ac.uk
oai:RePEc:kap:enreec:v:42:y:2009:i:2:p:211-2262020-08-08RePEc:kap:enreec
article Hurdle and Latent Class Approaches to Serial Non-Participation in Choice Models Choice experiments, Non-participation, Hurdle, Latent class, GM, 2 2009 42 2 Environmental and Resource Economics 211 226 http://hdl.handle.net/10.1007/s10640-008-9225-9 text/html Access to full text is restricted to subscribers. Mike Burton Dan Rigby dan.rigby@man.ac.uk
oai:RePEc:kap:enreec:v:49:y:2011:i:3:p:425-4432020-08-08RePEc:kap:enreec
article Aggregation Biases in Estimates of the Value per Statistical Life: Evidence from Longitudinal Matched Worker-Firm Data in Taiwan Value per statistical life, Firm-level risk data, Linked employer-employee data, 3 2011 49 7 Environmental and Resource Economics 425 443 http://hdl.handle.net/10.1007/s10640-010-9440-z text/html Access to full text is restricted to subscribers. Wehn-Jyuan Tsai wjtsai@cc.shu.edu.tw Jin-Tan Liu liujt@ntu.edu.tw James Hammitt jkh@harvard.edu
oai:RePEc:kap:enreec:v:14:y:1999:i:4:p:545-5712020-08-08RePEc:kap:enreec
article Harvesting Preemption, Industrial Concentration and Enclosure of National Marine Fisheries This paper explores how harvesting technology can affect firms' internalisation of common pool externalities and the incentives for expanding firm's size. Focusing on supply side non-pecuniary externalities, our closed-entry harvesting competition model suggests that when marginal harvesting costs are weakly sensitive to common pool externalities, atomistic competition is likely to remain, other things equal, as the predominant industrial structure in the fishery. The avenue for increasing industrial concentration is modelled via Stackelberg leadership which offers the option of preempting rivals' production. In our static modelling, a fishery subject to Stackelberg signalling results in higher overfishing versus the case of a highly decentralised harvesting sector (proxied by the use of Nash conjectures). Given that static optimising behaviour could be interpreted as a result of entry controls and other fishing regulations being widely perceived as ineffective controls, the obtained overfishing ranking suggests that in fisheries where strategic preemption in production is feasible, but where entry controls and other important regulations on fishing effort are considered to be ineffective, overfishing is likely to remain the predominant outcome, even if other incentives promote evolution towards a more concentrated industry structure. When the fishery is already overpopulated by numerous small firms, whatever advantages large firms may have in terms of profitability, numerous small-scale fishermen tend to make up for in the political arena. This imposes constraints on the politically feasible fishing regulations. We use a second best welfare benchmark to illustrate resulting policy trade-offs. Copyright Kluwer Academic Publishers 1999 common property, enclosure of marine fisheries, overproduction, strategic preemption of rivals' production, 4 1999 14 12 Environmental and Resource Economics 545 571 http://hdl.handle.net/10.1023/A:1008372709259 text/html Access to full text is restricted to subscribers. Julio Peñ-Torres j.pena@ic.ac.uk
oai:RePEc:kap:enreec:v:48:y:2011:i:3:p:413-4332020-08-08RePEc:kap:enreec
article Social Psychology and Environmental Economics: A New Look at ex ante Corrections of Biased Preference Evaluation Social psychology, Commitment, Persuasive communication, Preference elicitation, C9, H4, Q5, 3 2011 48 3 Environmental and Resource Economics 413 433 http://hdl.handle.net/10.1007/s10640-010-9448-4 text/html Access to full text is restricted to subscribers. Nicolas Jacquemet Nicolas.Jacquemet@univ-paris1.fr Alexander James ajames7@uwyo.edu Stéphane Luchini stephane.luchini@univmed.fr Jason Shogren JRamses@uwyo.edu
oai:RePEc:kap:enreec:v:25:y:2003:i:1:p:65-782020-08-08RePEc:kap:enreec
article Enforcing Transferable Permit Systems in the Presence of Market Power We derive an enforcementstrategy for a transferable permit system inthe presence of market power that achievescomplete compliance in a cost-effective manner.We show that the presence of a firm with marketinfluence makes designing an enforcementstrategy more difficult than enforcing aperfectly competitive system. We alsore-consider Hahn's (1984) suggestion that afirm with market influence should be allocatedpermits so that it chooses to not participatein the permit market. When enforcement and itscosts are taken into account, Hahn's suggestiondoes not hold except in a very special case. Copyright Kluwer Academic Publishers 2003 compliance, emissions trading, enforcement, environmental policy, market power, transferable permits, 1 2003 25 5 Environmental and Resource Economics 65 78 http://hdl.handle.net/10.1023/A:1023646414602 text/html Access to full text is restricted to subscribers. Carolos Chavez John Stanlund
oai:RePEc:kap:enreec:v:38:y:2007:i:1:p:71-872020-08-08RePEc:kap:enreec
article Does “No” mean “No”? A protest methodology In this paper, we propose a method of identifying and truncating protesters in Contingent Valuation surveys. We propose using a system of Willingness to Pay (WTP) questions that value multiple goods and that use both discrete choice and open-ended questions coupled with multiple questions about protest beliefs administered to the entire sample. Protesters can then be identified because they reject all bids, declare zero on all open-ended questions, and hold protest beliefs. The proposed procedure has been empirically tested on an air pollution data set from Poland, where 27 of the sample was identified as protesters. The adjustment for protesters increased the estimated WTP values by a factor of more than 3. Copyright Springer Science+Business Media, Inc. 2007 Air quality, Contingent Valuation, Embedding, Protest voters, Sequencing, 1 2007 38 9 Environmental and Resource Economics 71 87 http://hdl.handle.net/10.1007/s10640-006-9057-4 text/html Access to full text is restricted to subscribers. Dominika Dziegielewska dominika.parry@aya.yale.edu Robert Mendelsohn
oai:RePEc:kap:enreec:v:11:y:1998:i:3:p:489-5012020-08-08RePEc:kap:enreec
article Environmental Appraisal and Environmental Policy in the European Union Revisions to the European Treaty of Union require some form of environmental appraisal – primarily risk assessment and cost-benefit analysis – of regulatory initiatives by the European Commission. A retrospective look at the emergence of environmental appraisal also shows that, while the Commission has made great advances in introducing cost-benefit or cost-effectiveness appraisals in recent years, past environmental decisions and overall environmental policy have not been informed by systematic appraisal techniques. Nor is it clear what role is now being played by risk assessments. While it is impossible to gauge the extent to which systematic appraisal procedures will save on regulatory and compliance expenditures, some indications are provided of the costs of past neglect of these procedures. Copyright Kluwer Academic Publishers 1998 cost-benefit analysis, environmental policy, precautionary principle, risk assessment, sustainable development, 3 1998 11 4 Environmental and Resource Economics 489 501 http://hdl.handle.net/10.1023/A:1008207715184 text/html Access to full text is restricted to subscribers. David Pearce d.pearce@ucl.ac.uk
oai:RePEc:kap:enreec:v:60:y:2015:i:4:p:653-6532020-08-08RePEc:kap:enreec
article Erratum to: Clean-Development Investments: An Incentive-Compatible CGE Modelling Framework 4 2015 60 4 Environmental and Resource Economics 653 653 http://hdl.handle.net/10.1007/s10640-015-9908-y text/html Access to full text is restricted to subscribers. Christoph Böhringer christoph.boehringer@uni-oldenburg.de Thomas Rutherford rutherford@aae.wisc.edu Marco Springmann marco.springmann@uni-oldenburg.de
oai:RePEc:kap:enreec:v:57:y:2014:i:3:p:299-3222020-08-08RePEc:kap:enreec
article International Transport of Captured $$\hbox {CO}_2$$ CO 2 : Who Can Gain and How Much? If carbon capture and storage (CCS) is to become a viable option for low-carbon power generation, its deployment will require the construction of dedicated CO 2 transport infrastructure. In a scenario of large-scale deployment of CCS in Europe by 2050, the optimal (cost-minimising) CO 2 transport network would consist of large international bulk pipelines from the main CO 2 source regions to the CO 2 sinks in hydrocarbon fields and saline aquifers, which are mostly located in the North Sea. In this paper, we use a Shapley value approach to analyse the multilateral negotiation process that would be required to develop such jointly optimised CO 2 infrastructure. First, we find that countries with excess storage capacity capture 38–45 % of the benefits of multilateral coordination, implying that the resource rent of a depleted hydrocarbon field (when used for CO 2 storage) is roughly $${\$}1$$ $ 1 per barrel of original recoverable oil reserves, or $${\$}2$$ $ 2 per boe (barrel of oil equivalent) of original recoverable gas reserves. This adds 25–600 % to current estimates of CO 2 storage cost. Second, countries with a strategic transit location capture 19 % of the rent in the case of national pipeline monopolies. Liberalisation of CO 2 pipeline construction at EU level could eliminate the transit rent and is shown to reduce by two-thirds the differences between countries in terms of cost per tonne of CO 2 exported. Reaching agreement on such liberalisation may be politically challenging, since the payoffs are shown to be strongly divergent across countries. Copyright The Author(s) 2014 Carbon capture and storage, International negotiations , Network optimisation, Pipelines, Resource rent, Shapley value, Transit fee, 3 2014 57 3 Environmental and Resource Economics 299 322 http://hdl.handle.net/10.1007/s10640-013-9670-y text/html Access to full text is restricted to subscribers. Joris Morbee joris.morbee@gmail.com
oai:RePEc:kap:enreec:v:63:y:2016:i:2:d:10.1007_s10640-014-9869-62020-08-08RePEc:kap:enreec
article Corruption and Climate Change Policies: Do the Bad Old Days Matter? Abstract We study the effect of countries’ historical legacy with corruption on recent climate change policies and on global cooperation. Current policy outcomes build on policy choices made in previous years, and these choices were likely affected by the degree of corruption at the time. Our empirical findings using data for up to 131 countries suggest that accumulated historical experience with corruption is important for today’s policy outcomes, and appears to be more important than the current level of corruption. Corruption, History, International public goods, Climate change, Environmental policy 2 2016 63 2 13 Environmental and Resource Economics 451 469 Q54 Q58 H11 H23 H4 http://link.springer.com/10.1007/s10640-014-9869-6 text/html Abstract Per G. Fredriksson per.fredriksson@louisville.edu University of Louisville Eric Neumayer E.Neumayer@lse.ac.uk London School of Economics
oai:RePEc:kap:enreec:v:6:y:1995:i:4:p:309-3202020-08-08RePEc:kap:enreec
article Open access, common property and scarcity rent in fisheries Open access resources are frequently not managed efficiently, resulting in falling stock levels and a declining income for fishermen. In the late 1970's, the policy response to this problem was the implementation of 200-mile fishing zones, which enabled the European Union to formulate and implement the Common Fisheries Policy, aimed at (among other things) conservation and distribution of available stocks. In Germany, this shift from an open access regime towards a common property regime had favourable outcomes. The trend of falling prices was reversed. The conclusion was that intertemporal efficiency had increased as a result of (inter)governmental policy. Apparently, a wedge was formed between price and marginal harvesting costs, implying that scarcity rent had returned as a component of prices. Copyright Kluwer Academic Publishers 1995 Renewable resources, open access, common property, scarcity rent, rent dissipation, Common Fisheries Policy, 4 1995 6 12 Environmental & Resource Economics 309 320 http://hdl.handle.net/10.1007/BF00691816 text/html Access to full text is restricted to subscribers. Erwin Bulte Henk Folmer Wim Heijman
oai:RePEc:kap:enreec:v:31:y:2005:i:4:p:431-4582020-08-08RePEc:kap:enreec
article Altruism, Warm Glow and the Willingness-to-Donate for Green Electricity: An Artefactual Field Experiment cheap talk, crowding out, green electricity, impure altruism, willingness-to-donate, 4 2005 31 08 Environmental & Resource Economics 431 458 http://hdl.handle.net/10.1007/s10640-005-3365-y text/html Access to full text is restricted to subscribers. Roland Menges Carsten Schroeder Stefan Traub traub@bwl.uni-kiel.de
oai:RePEc:kap:enreec:v:12:y:1998:i:1:p:113-1362020-08-08RePEc:kap:enreec
article The Diffusion of Biological Waste-Water Treatment Plants in the Dutch Food and Beverage Industry This article develops an economic model of environmental technology adoption decisions. The model is applied econometrically to the diffusion of biological waste-water treatment plants in the Dutch food and beverage industry. It shows that it is possible to explain the overall diffusion pattern of biological waste-water treatment plants in terms of a rational choice model in which prospective adopters trade off the costs of effluent treatment against the savings on effluent tax payments. Effluent charges are shown to be a significant positive factor in the timing of adoption of biological effluent treatment plants. This result is brought out by both the rational choice and the epidemic models. None of the models however can explain year-to-year changes in the ownership of biological waste-water treatment plants during the 1974–91 period, which suggests that there are other factors, not included in the model, that affect the timing of adoption. Copyright Kluwer Academic Publishers 1998 environmental technology, technological diffusion, effluent charges, 1 1998 12 7 Environmental and Resource Economics 113 136 http://hdl.handle.net/10.1023/A:1016078930151 text/html Access to full text is restricted to subscribers. René Kemp r.kemp@merit.unimaas.nl
oai:RePEc:kap:enreec:v:65:y:2016:i:3:d:10.1007_s10640-016-0036-02020-08-08RePEc:kap:enreec
article Heterogeneous Beliefs and Climate Catastrophes Abstract We study how heterogeneous beliefs about the causes and extent of global warming affect local mitigation and adaptation strategies and therefore global climate dynamics. Local policies are determined by expectations of policy makers about future climate. There are three types of expectations: strong skeptic, weak skeptic and ‘science-based’. Strong skeptics deny human-induced climate change and a possibility of a climate catastrophe. Weak skeptics believe that industrial emissions cause global warming, but deny catastrophic climate change. Science-based policy makers, considering the warning of the scientific community, account for both: human influence on climate and possible catastrophic shifts. Aggregate behavior of policy makers determines the total emission level which influences global climate dynamics. The paper argues that even if there are only skeptical policy makers the climate catastrophe can still be avoided. Adaptation, Catastrophes, Climate change, Heterogeneous beliefs, Skepticism 3 2016 65 11 5 Environmental and Resource Economics 599 622 C61 Q54 http://link.springer.com/10.1007/s10640-016-0036-0 text/html Abstract Tatiana Kiseleva kiseleva.t@gmail.com Free University Amsterdam
oai:RePEc:kap:enreec:v:47:y:2010:i:2:p:197-2202020-08-08RePEc:kap:enreec
article Exchange Rules and the Incentive Compatibility of Choice Experiments Choice experiments, Incentive compatibility, Non-market valuation, 2 2010 47 10 Environmental and Resource Economics 197 220 http://hdl.handle.net/10.1007/s10640-010-9371-8 text/html Access to full text is restricted to subscribers. Laura Taylor laura_taylor@ncsu.edu Mark Morrison mmorrison@csu.edu.au Kevin Boyle kjboyle@vt.edu
oai:RePEc:kap:enreec:v:64:y:2016:i:2:d:10.1007_s10640-014-9870-02020-08-08RePEc:kap:enreec
article Is Democracy Good for the Environment? Quasi-Experimental Evidence from Regime Transitions Abstract This paper tests the hypothesis that democratisation is conducive to less environmental depletion due to human activity. Using interrupted time series design for a panel of 47 transition countries and two indexes of pollution, CO $$_{2}$$ 2 emissions and PM10 concentrations, I find that democracies and dictatorships have two different targets of environmental quality, with those of democracies higher than those of dictatorships. Income inequality may as well alter this targets, but with opposite effects in the two different regimes. Democracy, Environment, Cointegration, Interrupted time series, Segmented regression 2 2016 64 6 6 Environmental and Resource Economics 275 300 C23 D31 H23 Q58 Q51 http://link.springer.com/10.1007/s10640-014-9870-0 text/html Abstract Laura Policardo policardo@unisi.it laura.policardo@gmail.com
oai:RePEc:kap:enreec:v:63:y:2016:i:4:d:10.1007_s10640-014-9810-z2020-08-08RePEc:kap:enreec
article An Experimental Investigation of Hard and Soft Price Ceilings in Emissions Permit Markets Abstract Tradable emissions permits have been implemented to control pollution levels in various markets and represent a major component of legislative efforts to control greenhouse gas emissions. Because permits are supplied for a fixed level of pollution, allowing the market for permits to determine the price, price control mechanisms may be needed to protect firms from price spikes caused by fluctuations in the demand for permits. We test permit markets in an experimental laboratory setting to determine the effectiveness of several price control mechanisms, with special attention on the soft price ceiling. We focus on a static setting similar to some of the earliest experimental work focused on price ceilings. Results indicate that both permit supply adjustments and price ceilings (hard ceilings) effectively limit elevated prices in this setting. By contrast, reserve auctions to implement soft ceilings do not consistently control prices, especially when a minimum reserve permit price is applied. Furthermore, the grandfathering of permits allows permit sellers to realize significant welfare gains at the expense of buyers under a soft ceiling policy. Our results thus highlight several advantages of hard ceilings for controlling short term price increases. Greenhouse gases, Hard and soft price ceilings, Laboratory economic experiments, Pollution and price controls, Reserve auction, Tradable emissions permit market 4 2016 63 4 2 Environmental and Resource Economics 703 718 http://link.springer.com/10.1007/s10640-014-9810-z text/html Abstract David F. Perkis perkis@purdue.edu Purdue University Timothy N. Cason Purdue University Wallace E. Tyner Purdue University
oai:RePEc:kap:enreec:v:33:y:2006:i:1:p:73-932020-08-08RePEc:kap:enreec
article Community–Industry Contracting over Natural Resource use in a Context of Weak Property Rights: The Case of Indonesia Decentralization in Indonesia has resulted in an increased influence of local communities over the terms of logging agreements with timber companies. The outcomes of such community–company negotiations vary significantly across communities. What are the conditions that cause this variation, and how can the outcomes be more effectively and efficiently influenced by third-party actors such as the local government or NGOs? This paper addresses these questions by developing a game-theoretic model to illustrate the strategic interactions between communities and companies. The model allows for endogeneity of de facto property rights and bargaining positions. We show that third-party actions to improve the community’s bargaining position by raising its reservation utility may result in an increase in the area logged and thereby harm the environment. Our results indicate that the strategy of intervention matters. In particular, strategies that raise the sensitivity of interventions to local logging threats are likely to be more cost-effective in supporting communities and reducing forest degradation than more indiscriminatory strategies. The model will be relevant to other situations where communities negotiate contracts over natural resource use with outside actors in a context of weak property rights, a situation increasingly observed in other developing countries. Copyright Springer 2006 bargaining, community–industry negotiations, decentralization, endogenous property rights, logging contracts, natural resources, 012, 013, Q15, Q23, C72, 1 2006 33 01 Environmental & Resource Economics 73 93 http://hdl.handle.net/10.1007/s10640-005-1706-5 text/html Access to full text is restricted to subscribers. Stefanie Engel st.kirchhoff@uni-bonn.de Ramón López Charles Palmer
oai:RePEc:kap:enreec:v:29:y:2004:i:4:p:419-4332020-08-08RePEc:kap:enreec
article Sequencing and the Adding-up Property in Contingent Valuation of Endangered Species: Are Contingent Non-Use Values Economic Values? This paper presents tests of the theoretical validity of the contingent valuation (CV) method. The validity of CV is especially a concern when involving environmental goods with a predominant non-use value. One test of theoretical validity is the adding-up property that implies that a specific good should be equally valued irrespectively of it is being valued directly or built-up sequentially. In this CV study four independent sub-samples stated willingness to pay for the same composite good, or package, using different sequences. One sub-sample valued the composite good directly, while two sub-samples faced built-up sequences valuing first subsets of this composite good. A fourth sub-sample valued the composite good from a dividing-out approach, facing first the valuation of a larger multi-package. Theoretically expected sequencing effects were observed; the subset goods obtained higher values earlier in a sequence, and the dividing-out approach decreased the stated value for the composite good. Most importantly, these CV data did pass the tests of the adding-up property. Copyright Kluwer Academic Publishers 2004 adding-up property, contingent valuation, endangered species, non-use, sequencing, 4 2004 29 12 Environmental and Resource Economics 419 433 http://hdl.handle.net/10.1007/s10640-004-9458-1 text/html Access to full text is restricted to subscribers. Knut Veisten kve@toi.no Hans Hoen Jon Strand
oai:RePEc:kap:enreec:v:57:y:2014:i:3:p:477-4772020-08-08RePEc:kap:enreec
article Erratum to: Salt or Sludge? Exploring Preferences for Potable Water Sources 3 2014 57 3 Environmental and Resource Economics 477 477 http://hdl.handle.net/10.1007/s10640-013-9734-z text/html Access to full text is restricted to subscribers. Fiona Gibson fiona.gibson@uwa.edu.au Michael Burton michael.burton@uwa.edu.au
oai:RePEc:kap:enreec:v:13:y:1999:i:4:p:415-4332020-08-08RePEc:kap:enreec
article Political Competition, Rent Seeking and the Choice of Environmental Policy Instruments This paper investigates the impact of political lobbying on the choice of environmental policy instruments. It is argued that the prevalence of pollution emission standards over more efficient policy instruments may result from rent seeking behaviour. The model further predicts that when an emission standard is used to control pollution, rival political parties have an incentive to set the same standard. There is therefore a convergence of policies. Moreover, it is shown that emission taxes are more likely to be supported and proposed by political parties which represent environmental interest groups. This feature appears to accord with the observed support for environmental taxes by ‘Green’ parties in Europe, Australia, New Zealand and elsewhere. Copyright Kluwer Academic Publishers 1999 environmental policy, political competition, pollution taxes, rent seeking, 4 1999 13 6 Environmental and Resource Economics 415 433 http://hdl.handle.net/10.1023/A:1008299920714 text/html Access to full text is restricted to subscribers. R. Damania ddamania@economics.adelaide.edu.au
oai:RePEc:kap:enreec:v:63:y:2016:i:3:p:571-5902020-08-08RePEc:kap:enreec
article Your Money or Your Life: Green Growth Policies and Welfare in 2050 This paper proposes a simple index of economic progress that weighs in the monetary cost induced by climate change mitigation policies as well as the health benefits arising from the reduction in local air pollution. The shadow price of pollution is calculated indirectly through its impact on life expectancy. Taking into account the health benefits of mitigation policies significantly reduces their monetary cost in China and India, as well as in countries with large fossil-based energy-producing sectors (Australia, Canada and the United States). Copyright Springer Science+Business Media Dordrecht 2016 Climate change, Health, Value of a statistical life, Welfare measurement, I31, Q51, Q54, 3 2016 63 3 Environmental and Resource Economics 571 590 http://hdl.handle.net/10.1007/s10640-014-9849-x text/html Access to full text is restricted to subscribers. Alain Serres alain.deserres@oecd.org Fabrice Murtin
oai:RePEc:kap:enreec:v:62:y:2015:i:2:p:359-3812020-08-08RePEc:kap:enreec
article State-Dependent Enforcement to Foster the Adoption of New Technologies Harrington (J Public Econ 37:29–53, 1988 ) shows that a suitable strategy for regulators to make enforcement more efficient is to target surveillance resources according to past compliance records. Such scheme generates enforcement leverage as non-compliance triggers greater future scrutiny increasing the expected costs of non-compliance beyond the avoidance of immediate fines. In this paper, we propose an improved transition structure for the audit framework, in which targeting is based not only on firms’ past compliance record but also on adoption of environmentally superior technologies. We show that this transition structure would not only foster the adoption of new technology but also increase deterrence by changing the composition of firms in the industry toward an increased fraction of cleaner firms that pollute and violate less. Copyright Springer Science+Business Media Dordrecht 2015 Imperfect compliance, State-dependent targeted enforcement, Technology adoption, Emission standards, L51, Q55, K31, K42, 2 2015 62 10 Environmental and Resource Economics 359 381 http://hdl.handle.net/10.1007/s10640-015-9943-8 text/html Access to full text is restricted to subscribers. Jessica Coria Jessica.Coria@economics.gu.se Xiao-Bing Zhang xbzhmail@gmail.com
oai:RePEc:kap:enreec:v:9:y:1997:i:2:p:199-2242020-08-08RePEc:kap:enreec
article Optimizing environmental product life cycles In this paper, we propose a methodology, based on materials accounting and operational research techniques, to assess different industry configurations according to their life cycle environmental impacts. Rather than evaluating a specific technology, our methodology searches for the feasible configuration with the minimum impact. This approach allows us to address some basic policy-relevant questions regarding technology choice, investment priorities, industrial structures, and international trade patterns. We demonstrate the methodology in the context of the European pulp and paper industry. We are able to show that current environmental policy's focus on maximizing recycling is optimal now, but that modest improvements in primary pulping technology may shift the optimal industry configuration away from recycling toward more primary pulping with incineration. We show that this will have significant implications for the amount and type of environmental damage, for the location of different stages in the production chain, and for trade between European member states. We caution policy makers that their single-minded focus on recycling may foreclose investment in technologies that could prove environmentally superior. Finally, we hint that member state governments may be fashioning their environmental policy positions at least in part on some of the trade and industrial implications we find. Copyright Kluwer Academic Publishers 1997 environmental policy, pulp and paper, life cycle, optimization, technology lock-in, recycling, geography of production, environment-trade conflict, 2 1997 9 3 Environmental & Resource Economics 199 224 http://hdl.handle.net/10.1007/BF02441378 text/html Access to full text is restricted to subscribers. Paul Weaver H. Gabel Jacqueline Bloemhof-Ruwaard Luk Wassenhove
oai:RePEc:kap:enreec:v:57:y:2014:i:2:p:251-2722020-08-08RePEc:kap:enreec
article The Value of Urban Green Space in Britain: A Methodological Framework for Spatially Referenced Benefit Transfer A meta-analysis of studies valuing urban greenspace in the UK is undertaken to yield spatially sensitive marginal value functions. A geographical information system (GIS) is used to apply these functions to spatial data detailing the location of such greenspace resources in five British cities. Changes in monetary values are computed for the six future scenarios used in the UK National Ecosystem Assessment for the period 2010–2060. Different degrees of substitutability between urban greenspaces are considered. These findings are then extrapolated to all major British cities to obtain per household and aggregate valuation estimates for each scenario both with and without distributional weights. While subject to a number of shortcomings in both data availability and methodology, this represents the first systematic and comprehensive attempt to value marginal changes in urban greenspace while accounting for spatial heterogeneity. Copyright Springer Science+Business Media Dordrecht 2014 UK National Ecosystem Assessment, Urban greenspace , Spatially referenced benefit transfer, Q51, Q57, R0, 2 2014 57 2 Environmental and Resource Economics 251 272 http://hdl.handle.net/10.1007/s10640-013-9665-8 text/html Access to full text is restricted to subscribers. Grischa Perino grischa.perino@wiso.uni-hamburg.de Barnaby Andrews Andreas Kontoleon Ian Bateman
oai:RePEc:kap:enreec:v:4:y:1994:i:3:p:241-2492020-08-08RePEc:kap:enreec
article Economic growth with environmental damage and technical progress The papers on economic growth with environmental constraints usually ignore the effect of technical progress, this results in static steady state solutions. This paper examines the problem of optimal economic growth with environmental damage, technical progress taken into account, which produces a steady state solution that corresponds to an equilibrium growth, with non-constant emissions and pollutant stock. As a means of steering the economy along the optimal path, two types of tradeable pollution permits are analyzed. The method of stabilizing the optimal path, leading to a steady state, is suggested. Copyright Kluwer Academic Publishers 1994 Economic growth, pollution control, technical progress, tradeable pollution permits, stability, 3 1994 4 6 Environmental & Resource Economics 241 249 http://hdl.handle.net/10.1007/BF00692326 text/html Access to full text is restricted to subscribers. Oleg Eismont
oai:RePEc:kap:enreec:v:46:y:2010:i:2:p:139-1462020-08-08RePEc:kap:enreec
article Behavioral Economics and the Environment 2 2010 46 6 Environmental and Resource Economics 139 146 http://hdl.handle.net/10.1007/s10640-010-9357-6 text/html Access to full text is restricted to subscribers. Gardner Brown gbrown@u.washington.edu Daniel Hagen
oai:RePEc:kap:enreec:v:7:y:1996:i:1:p:57-782020-08-08RePEc:kap:enreec
article The validity of the contingent valuation method: Perfect and regular embedding This article deals with one aspect of the validity claim of the contingent valuation method, namely: to what extent does the method produce different values in situations for which economic theory claims different values. Two aspects of this validity test — perfect and regular embedding — were tested in a field experiment comprising six samples of the Dutch population. Perfect embedding occurs when the value for a specific good is similar to the value for a more inclusive good. Perfect embedding did not manifest itself in the experiment. Respondents considered a package of six goods as well as a package of two goods more valuable than one of these goods. It is argued that this supportive evidence of the method's validity claim occurred because the goods involved were well-defined. Regular embedding occurs when the same good receives a lower value if the value for it is inferred from the value for a more inclusive good rather than if that good is valued on its own. Regular embedding was only found when respondents were given the opportunity to value the inclusive good before valuing the specific good. Respondents who were given information on the inclusive good without valuing it did not state different values than respondents who were not given that information. It seems that respondents perceive an inclusive good as being relevant to their valuation decision only when they are asked to value it. Further research is necessary to shed more light on the underlying processes that may account for this. Copyright Kluwer Academic Publishers 1996 Contingent valuation, perfect embedding, regular embedding, 1 1996 7 1 Environmental & Resource Economics 57 78 http://hdl.handle.net/10.1007/BF00420427 text/html Access to full text is restricted to subscribers. Ruud Hoevenagel
oai:RePEc:kap:enreec:v:8:y:1996:i:4:p:399-4162020-08-08RePEc:kap:enreec
article Choosing the right instrument This paper analyses the optimal choice of second-best optimal environmental policies. Using a partial equilibrium model, the paper first reconfirms the well-known result that the existence of a double dividend (in its weak definition) favours environmental policy instruments which maximise tax revenues for a given improvement in environmental quality. Additional revenues can be used to reduce the distortion of existing taxes such as taxes on labour and capital income. Without uncertainty, environmental taxes and auctioned permits are equally appropriate. In the presence of uncertainty, however, the optimal choice of taxes or tradable permits depends on the relative magnitudes of the marginal environmental damage and the marginal benefit from consuming a polluting good. In the second part, the paper, therefore, analyses how the revenue capacity affects the optimal choice of environmental policy instruments in the presence of uncertainty. The paper shows that the first-best choice rule between price and quantity regulation (Weitzman, 1974) remains valid in a second-best world with distortionary taxation. Copyright Kluwer Academic Publishers 1996 environmental taxes, tradable permits, excess burden, tax revenues, uncertainty, secondbest policy, 4 1996 8 12 Environmental & Resource Economics 399 416 http://hdl.handle.net/10.1007/BF00357410 text/html Access to full text is restricted to subscribers. Ronnie Schöb
oai:RePEc:kap:enreec:v:37:y:2007:i:4:p:777-7952020-08-08RePEc:kap:enreec
article Distribution-free estimation with interval-censored contingent valuation data: troubles with Turnbull? Contingent valuation (CV) surveys frequently employ elicitation procedures that return interval-censored data on respondents’ willingness to pay (WTP). Almost without exception, CV practitioners have applied Turnbull’s self-consistent algorithm to such data in order to obtain nonparametric maximum likelihood (NPML) estimates of the WTP distribution. This paper documents two failings of Turnbull’s algorithm; (1) that it may not converge to NPML estimates and (2) that it may be very slow to converge. With regards to (1) we propose starting and stopping criteria for the algorithm that guarantee convergence to the NPML estimates. With regards to (2) we present a variety of alternative estimators and demonstrate, through Monte Carlo simulations, their performance advantages over Turnbull’s algorithm. Copyright Springer Science+Business Media, Inc. 2007 Interval-censored data, Turnbull’s self-consistent algorithm, Nonparametric maximum likelihood, Contingent valuation, 4 2007 37 8 Environmental and Resource Economics 777 795 http://hdl.handle.net/10.1007/s10640-006-9061-8 text/html Access to full text is restricted to subscribers. Brett Day brett.day@uea.ac.uk
oai:RePEc:kap:enreec:v:46:y:2010:i:1:p:43-582020-08-08RePEc:kap:enreec
article Modeling the Economics of Biodiversity and Environmental Heterogeneity Biodiversity, Environmental heterogeneity, Externality, Q21, 1 2010 46 5 Environmental and Resource Economics 43 58 http://hdl.handle.net/10.1007/s10640-009-9333-1 text/html Access to full text is restricted to subscribers. William Brock wbrock@ssc.wisc.edu Ann Kinzig kinzig@asu.edu Charles Perrings Charles.perrings@asu.edu
oai:RePEc:kap:enreec:v:38:y:2007:i:1:p:1-112020-08-08RePEc:kap:enreec
article The most popular tax in Europe? Lessons from the Irish plastic bags levy There have been occasional ad hoc efforts to influence consumer behaviour by the imposition of product taxes that reflect external costs imposed by such products that are not initially included in their price. In the spirit of this idea, in 2002 Ireland introduced a 15 Euro cent tax on plastic shopping bags, previously provided free of charge to customers at points of sale. The effect of the tax on the use of plastic bags in retail outlets has been dramatic—a reduction in use in the order of 90%, and an associated gain in the form of reduced littering and negative landscape effects. Costs of administration have been very low, amounting to about 3% of revenues, because it was possible to integrate reporting and collection into existing Value Added Tax reporting systems. Response from the main stakeholders: the public and the retail industry, has been overwhelmingly positive. Central to this acceptance has been a policy of extensive consultation with these stakeholders. The fact that a product tax can influence consumer behaviour significantly will be of interest to many policymakers in this area. This paper analyses the plastic bag levy success story and provides insights and general guidelines for other jurisdictions planning similar proposals. Copyright Springer Science+Business Media, Inc. 2007 Environmental taxes, Product taxes, Plastic bag tax, Litter, Ireland, 1 2007 38 9 Environmental and Resource Economics 1 11 http://hdl.handle.net/10.1007/s10640-006-9059-2 text/html Access to full text is restricted to subscribers. Frank Convery Simon McDonnell simon.mcdonnell@ucd.ie Susana Ferreira
oai:RePEc:kap:enreec:v:56:y:2013:i:2:p:151-1602020-08-08RePEc:kap:enreec
article The International Dimension of Climate Change Policy 2 2013 56 10 Environmental and Resource Economics 151 160 http://hdl.handle.net/10.1007/s10640-013-9724-1 text/html Access to full text is restricted to subscribers. Michael Finus m.finus@bath.ac.uk Christos Kotsogiannis Steve McCorriston
oai:RePEc:kap:enreec:v:33:y:2006:i:4:p:485-5092020-08-08RePEc:kap:enreec
article Modeling Disinterest and Dislike: A Bounded Bayesian Mixed Logit Model of the UK Market for GM Food Mixed logit models represent a powerful discrete choice analytical model but require assumptions about the functional form of the parameter distributions. The use of unbounded distributions, such as the normal distribution, may be regarded as unsuitable where theory indicates that all are negatively affected by increases in an attribute, such as price. Bounded distributions such as the triangular and log-normal are unable to model the case where a section of the population is indifferent towards an attribute, while the remainder are negatively disposed toward it. Train and Sonnier’s bounded mixed logit model accommodates these features and is employed in this paper. A censored normal and Johnson’s S b distribution are used to model preferences in the UK for food attributes, including price and GM technology. Bi-modal distributions are identified regarding GM food: some are unlikely to ever consume it, some are close to indifference and willing to consume at relatively small discounts while the remainder are fairly unresponsive to further price reductions. Copyright Springer 2006 Bayesian, bounded mixed logit, choice modeling, food safety, GMOs, C11, C24, C25, D12, Q18, 4 2006 33 04 Environmental & Resource Economics 485 509 http://hdl.handle.net/10.1007/s10640-005-4995-9 text/html Access to full text is restricted to subscribers. Dan Rigby dan.rigby@man.ac.uk Mike Burton
oai:RePEc:kap:enreec:v:32:y:2005:i:2:p:273-3002020-08-08RePEc:kap:enreec
article Regulation of Stock Externalities with Correlated Abatement Costs We study a dynamic regulation model where firms’ actions contribute to a stock externality. The regulator and firms have asymmetric information about serially correlated abatement costs. With price-based policies such as taxes, or if firms trade quotas efficiently, the regulator learns about the evolution of both the stock and costs. This ability to learn about costs is important in determining the ranking of taxes and quotas, and in determining the value of a feedback rather than an open-loop policy. For a range of parameter values commonly used in global warming studies, taxes dominate quotas, regardless of whether the regulator uses an open-loop or a feedback policy, and regardless of the extent of cost correlation. Copyright Springer 2005 asymmetric information, choice of instruments, correlated costs, learning, pollution control, C61, D8, H21, Q28, 2 2005 32 10 Environmental & Resource Economics 273 300 http://hdl.handle.net/10.1007/s10640-005-4678-6 text/html Access to full text is restricted to subscribers. Larry Karp karp@are.berkeley.edu Jiangfeng Zhang
oai:RePEc:kap:enreec:v:2:y:1992:i:3:p:259-2812020-08-08RePEc:kap:enreec
article Targeted versus nontargeted multispecies fishing In multispecies fisheries, different technological harvest conditions imply different long-run bioeconomic equilibria. Optimal and open access exploitation by a single fleet of two ecologically independent species is considered. Two polar cases are studied: Targeted fishing, when fishermen have to choose at any moment which species to target; and Nontargeted fishing, when more than one species is caught at the same time. The relative efficiency of several policy measures is examined for both cases. Copyright Kluwer Academic Publishers 1992 Bioeconomic model, multispecies fisheries, management policies, 3 1992 2 5 Environmental & Resource Economics 259 281 http://hdl.handle.net/10.1007/BF00376200 text/html Access to full text is restricted to subscribers. C. Duarte
oai:RePEc:kap:enreec:v:12:y:1998:i:4:p:507-5132020-08-08RePEc:kap:enreec
article Pigouvian Taxes Under Imperfect Competition If Consumption Depends on Emissions The paper considers environmental regulation of a consumption good and an externality which influence demand and costs in a nonseparable way. Under monopoly two instruments are always required for first-best. The Pigouvian tax is more complicated than anticipated. Copyright Kluwer Academic Publishers 1998 environmental regulation, imperfect competition, nonseparable utility, Pigouvian tax, 4 1998 12 12 Environmental and Resource Economics 507 513 http://hdl.handle.net/10.1023/A:1008215019489 text/html Access to full text is restricted to subscribers. Udo Ebert Oskar von dem Hagen vdhagen@uni-oldenburg.de
oai:RePEc:kap:enreec:v:39:y:2008:i:4:p:447-4572020-08-08RePEc:kap:enreec
article Using history dependence to design a dynamic tradeable quota system under market imperfections Transferable quota, Market imperfection, History dependence, Q22, Q28, D42, 4 2008 39 4 Environmental and Resource Economics 447 457 http://hdl.handle.net/10.1007/s10640-007-9135-2 text/html Access to full text is restricted to subscribers. Claire Armstrong claire.armstrong@nfh.uit.no
oai:RePEc:kap:enreec:v:55:y:2013:i:2:p:257-2892020-08-08RePEc:kap:enreec
article Capital Malleability, Emission Leakage and the Cost of Partial Climate Policies: General Equilibrium Analysis of the European Union Emission Trading System Computable general equilibrium (CGE) models are the premier analytical platform for assessing the economic impacts of climate change mitigation. But these models tend to treat physical capital as “malleable”, capable of reallocation among sectors over the time-period for which equilibrium is solved. Because the extent to which capital adjustment costs might dampen reallocation is not well understood, there is concern that CGE assessments understate the true costs of greenhouse gas (GHG) reduction policies. This paper uses a multi-region, multi-sector CGE model to investigate cap-and-trade schemes, such as the European Union Emission Trading System which cover a subset of the economy, elucidating the effects of capital malleability on GHG abatement, the potential for emission leakage from abating to non-abating sectors, and the impacts on welfare. To simplify the complex interactions being simulated within the CGE model, that analysis is complemented with an analytical model. A partial climate policy results in negative internal carbon leakage, with emissions declining not only in capped sectors but also in non-regulated ones. This result is stronger when capital is intersectorally mobile. Interestingly, in partial climate policy settings capital malleability can amplify or attenuate welfare losses depending on the attributes of the economy. Copyright Springer Science+Business Media Dordrecht 2013 General equilibrium, CGE models, Climate change policy, Emissions trading, Capital malleability, 2 2013 55 6 Environmental and Resource Economics 257 289 http://hdl.handle.net/10.1007/s10640-012-9625-8 text/html Access to full text is restricted to subscribers. Elisa Lanzi elisa.lansi@feem.it Ian Sue Wing isw@bu.edu
oai:RePEc:kap:enreec:v:22:y:2002:i:1:p:219-2692020-08-08RePEc:kap:enreec
article Applying Geographical Information Systems (GIS) to Environmental and Resource Economics Many of the analyses undertaken byenvironmental and resource economics areintimately concerned with spatial variations.This article examines the contribution whichGeographical Information Systems (GIS) mayprovide in incorporating the complexities ofthe spatial dimension within such analyses. Thepaper introduces the reader to the types ofdata handled by a GIS and overviews thepractical functionality offered by suchsystems. A brief literature review issupplemented by a number of more detailedapplications illustrating various GIStechniques which may be of use to the appliedenvironmental or resource economist. Copyright Kluwer Academic Publishers 2002 benefit transfer, environmental economics, Geographical Information System (GIS), resource economics, spatial analysis, valuation, 1 2002 22 6 Environmental and Resource Economics 219 269 http://hdl.handle.net/10.1023/A:1015575214292 text/html Access to full text is restricted to subscribers. I.J. Bateman i.bateman@uea.ac.uk A.P. Jones A.A. Lovett I.R. Lake B.H. Day
oai:RePEc:kap:enreec:v:11:y:1998:i:2:p:177-1952020-08-08RePEc:kap:enreec
article Nuclear Power, Externalities and Non-Standard Pigouvian Taxes The external effects arising from the use of nuclear power are, in a fundamental way, related to uncertainty. In this paper we locate these external effects and derive a dynamic Pigouvian tax in order to make the decentralized economy support the command optimum. Another interesting result is that a small constant energy tax (which we interpret as a second best policy) can take the decentralized economy reasonably close to the command optimum. Copyright Kluwer Academic Publishers 1998 uncertainty, externalities, Pigouvian taxes, nuclear power, 2 1998 11 3 Environmental and Resource Economics 177 195 http://hdl.handle.net/10.1023/A:1008200513848 text/html Access to full text is restricted to subscribers. Thomas Aronsson Kenneth Backlund Karl-Gustaf Löfgren
oai:RePEc:kap:enreec:v:24:y:2003:i:2:p:161-1822020-08-08RePEc:kap:enreec
article Product Durability and Extended Producer Responsibility in Solid Waste Management Using a vintage durable good model, this paper investigates how extended producer responsibility (EPR) in waste management influences product durability and welfare. Four EPR instruments are discussed and compared with the benchmark in which producers do not receive price signals for waste disposal. In each case, EPR induces durability to increase. Under perfect competition the welfare change caused by EPR is unambiguously positive and one EPR instrument is even capable of implementing the first-best welfare optimum. In contrast, under imperfect competition EPR may lead to a welfare reduction. The analysis also compares EPR to non-EPR measures. Copyright Kluwer Academic Publishers 2003 extended producer responsibility, market structure, product durability, solid waste, 2 2003 24 2 Environmental and Resource Economics 161 182 http://hdl.handle.net/10.1023/A:1022800206337 text/html Access to full text is restricted to subscribers. Marco Runkel marco.runkel@lrz.uni-muenchen.de
oai:RePEc:kap:enreec:v:59:y:2014:i:2:p:295-3352020-08-08RePEc:kap:enreec
article Energy Efficiency and Rebound Effects: An Econometric Analysis of Energy Demand in the Commercial Building Sector It is widely recognized that the adoption of energy saving innovations can induce an increase in the usage of the corresponding technologies and thus can possibly increase energy consumption. Among other concerns is that uncertainties regarding the magnitude of this “rebound effect” can deter policy makers from promoting energy efficiency. This paper analyzes the rebound effects of the adoption of energy efficient technologies in commercial buildings. Based upon a structural model of technology adoption and subsequent energy demand at the building level, the empirical results are that energy efficiency can reduce electricity use by about 35 % and natural gas consumption by about 50 %. Copyright Springer Science+Business Media Dordrecht 2014 Electricity and natural gas demand, Energy efficiency , Heckman selection model, Price elasticity, Rebound effect, 2 2014 59 10 Environmental and Resource Economics 295 335 http://hdl.handle.net/10.1007/s10640-013-9729-9 text/html Access to full text is restricted to subscribers. Yueming Qiu yuemingq@gmail.com
oai:RePEc:kap:enreec:v:56:y:2013:i:3:p:457-4572020-08-08RePEc:kap:enreec
article Erratum to: Willingness to Pay and Sensitivity to Time Framing: A Theoretical Analysis and an Application on Car Safety 3 2013 56 11 Environmental and Resource Economics 457 457 http://hdl.handle.net/10.1007/s10640-013-9733-0 text/html Access to full text is restricted to subscribers. Henrik Andersson henrik.andersson@tse-fr.eu James Hammitt Gunnar Lindberg Kristian Sundström
oai:RePEc:kap:enreec:v:32:y:2005:i:1:p:1-122020-08-08RePEc:kap:enreec
article Anomalies and Stated Preference Techniques: A Framework for a Discussion of Coping Strategies This paper introduces a symposium on the issue of how stated preference (SP) research can best cope with ‘anomalies’ (i.e. systematic deviations from the predictions of standard economic theory) in survey responses. It proposes a framework for constructive debate, recognising (i) the legitimate aspirations of SP research, (ii) the relevance of evidence from sources other than best-practice SP, and (iii) the precautionary value of investigating strategies for coping with suspected anomalies, even if questions about the robustness of anomalies have not been finally resolved. Five alternative coping strategies, discussed in more detail in the symposium, are briefly introduced. Copyright Springer 2005 stated preference, contingent valuation, anomalies, 1 2005 32 09 Environmental and Resource Economics 1 12 http://hdl.handle.net/10.1007/s10640-005-6025-3 text/html Access to full text is restricted to subscribers. Robert Sugden r.sugden@uea.ac.uk
oai:RePEc:kap:enreec:v:13:y:1999:i:1:p:13-292020-08-08RePEc:kap:enreec
article Adverse Selection and Pigou Taxes It id assumed that firms have different technologies, and that an environment protection agency knows which technologies exist, but not which is used by which firms. Neither the emissions of individual firms nor their total emissions are observable. The output of each individual firm, however, can be monitored without cost. Based on this information tax schemes are constructed which induce firms to produce the socially efficient output quantities. Conditions about cost functions are derived which ensure the existence of tax schemes which yield first best solutions. Copyright Kluwer Academic Publishers 1999 adverse selection, emissions, Pigou taxes, 1 1999 13 1 Environmental and Resource Economics 13 29 http://hdl.handle.net/10.1023/A:1008240027071 text/html Access to full text is restricted to subscribers. Gerhard Clemenz
oai:RePEc:kap:enreec:v:3:y:1993:i:3:p:263-2842020-08-08RePEc:kap:enreec
article Economic instruments for emission abatement under appreciable technological indivisibilities The paper explores the performance of decentralized incentives when abatement involves technological indivisibilities. Technologically, pollution abatement is often carried out as a discrete process, if pollution reduction involves relatively large-scale investments in emission abatement equipment.Consequently, the firm's response to decentralized economic incentives for pollution abatement is affected by the indivisible property of the technology. It can be shown that in such cases efficiency may not be realized. Installing an abatement device may entail “too much” or “too little” investment compared with the eficient solution. To partially remedy this problem, an incentive scheme which incorporates a fine (penalty) on pollution-induced damages is proposed in this paper. Essentially, as in the case of the command and control approach, the mechanism imposes a fine when firms do not meet an aggregate (e.g., a “bubble”) emission level. The fine is set as a proportion of the polluting firm's share of the total excess damage inflicted when the standard has been violated. The paper explores alternative outcomes under this scheme in the framework of a non-cooperative game. The outcomes under command and control (uniform percentage reductions), taxes, pollution permits and the fine scheme are illustrated with data from the haifa area in northern Israel. They are compared with the social planner solution in terms of efficiency (achieving a given standard at minimum cost) and the volume of transfer cost. Copyright Kluwer Academic Publishers 1993 3 1993 3 6 Environmental & Resource Economics 263 284 http://hdl.handle.net/10.1007/BF00313162 text/html Access to full text is restricted to subscribers. Nir Becker Mira Baron Mordechai Shechter
oai:RePEc:kap:enreec:v:1:y:1991:i:2:p:215-2362020-08-08RePEc:kap:enreec
article Pollution control and the Ramsey problem Pollution is an inevitable by-product of production and is only gradually dissolved by the environment. It can be reduced by producing less and by cleaning up the environment, but neither occur when they are left to the market. Cleaning activities and the optimal emission charges increase with the stock of pollutants. When one allows for pollution of the environment in the classical Ramsey problem, the capital stock is less than in the market outcome and a fortiori less than under the golden rule. The analysis distinguishes between stock and flow externalities arising from pollution. An increase in impatience can lead to more capital accumulation, even though this leaves less room for current consumption. Copyright Kluwer Academic Publishers 1991 Pollution control, abatement activities, capital accumulation, Ramsey model, 2 1991 1 6 Environmental & Resource Economics 215 236 http://hdl.handle.net/10.1007/BF00310019 text/html Access to full text is restricted to subscribers. Frederick Ploeg Cees Withagen
oai:RePEc:kap:enreec:v:28:y:2004:i:4:p:489-5062020-08-08RePEc:kap:enreec
article Nonpoint Source Pollution Control under Incomplete and Costly Information We analyze the efficient management of nonpoint source pollution (NPS) under a limited pollution control budget and incomplete information. We focus on the tradeoff between data collection and pollution abatement efforts by incorporating information acquisition into a NPS pollution control model. Comparative static results show conditions under which (i) a favorable change in the abatement costs at one source may lead to an increase in the treatment level at all sources, and vice versa, (ii) an increase in data collection cost leads to an increase in data collection level, and (iii) an increase in the efficiency of information acquisition leads to a decrease in the level of data collection. More importantly, the model simulations illustrate that acquiring and exploiting information on heterogeneity of sediment loading distributions across polluting sources leads to a more efficient budget allocation and hence a greater reduction in pollution damage than would be the case without such information. Copyright Kluwer Academic Publishers 2004 constrained pollution control budget, costly information, non-point source pollution, uncertainty, 4 2004 28 8 Environmental and Resource Economics 489 506 http://hdl.handle.net/10.1023/B:EARE.0000036775.79214.a4 text/html Access to full text is restricted to subscribers. Y. Farzin farzin@primal.ucdavis.edu Jonathan Kaplan
oai:RePEc:kap:enreec:v:7:y:1996:i:3:p:243-2502020-08-08RePEc:kap:enreec
article On the interpretation of ‘green’ NNP measures as cost-benefit rules In this paper we consider the possibility of using ‘green’ welfare change measures as the basis for cost-benefit analysis of new projects. Such green welfare change measures look very similar to what one would expect a cost-benefit analysis of the entire economy to look like. It is shown that although green welfare measures contain the shadow prices needed in the evaluation of a small new project, one must account for changes in these prices. Copyright Kluwer Academic Publishers 1996 Cost-benefit analysis, green national income, environmental change, 3 1996 7 4 Environmental & Resource Economics 243 250 http://hdl.handle.net/10.1007/BF00782147 text/html Access to full text is restricted to subscribers. Per-Olov Johansson Karl-Gustaf Löfgren
oai:RePEc:kap:enreec:v:38:y:2007:i:1:p:13-302020-08-08RePEc:kap:enreec
article How to design and use the clean development mechanism under the Kyoto Protocol? A developing country perspective Under the Kyoto Protocol, industrialized countries committed to emission reductions may fullfil part of their obligations by implementing emission reduction projects in developing countries. In doing so, they make use of the so-called Clean Development Mechanism (CDM). Two important issues surround the implementation of the CDM. First, if the cheapest abatement measures are implemented for CDM projects, developing countries may be left with only more expensive measures when they have to meet their own commitments in the future (the so-called low-hanging fruits (LHF) issue). Second, a choice must be made on the type of baseline against which emission reductions are measured: an absolute baseline or a relative (to output) one (the baseline issue). The purpose of this paper is to study the interactions between these two issues from the point of view of the developing country. Two major results are obtained. First, when possible future commitments for developing countries and irreversibility of abatement measures are taken into account, we show that the industry where CDM projects are implemented enjoys larger profits under an absolute baseline than under a relative one. Second, concerning the LHF problem, the financial compensation required by the developing country for implementing ‘too many’ CDM projects is larger under the relative baseline. Copyright Springer Science+Business Media, Inc. 2007 Clean development mechanism, Kyoto protocol, Low-hanging fruits issue, Absolute vs relative baselines, 1 2007 38 9 Environmental and Resource Economics 13 30 http://hdl.handle.net/10.1007/s10640-006-9066-3 text/html Access to full text is restricted to subscribers. M. Germain germain@core.ucl.ac.be A. Magnus V. Steenberghe
oai:RePEc:kap:enreec:v:58:y:2014:i:3:p:335-3512020-08-08RePEc:kap:enreec
article Behavioral Environmental Economics: Promises and Challenges Environmental issues provide a rich ground for identifying the existence and consequences of human limitations. In this paper, we present a growing literature lying at the interface between behavioral and environmental economics. This literature identifies alternative solutions to traditional economic instruments in environmental domains that often work imperfectly. But it also faces a set of challenges, including the difficulty of computing welfare effects, and the identification of a robust environmental policy based on context-dependent (socio-) psychological effects. We illustrate our critical discussion with two behavioral schemes that have been widely implemented: “green nudges” and “corporate environmental responsibility.” Copyright Springer Science+Business Media Dordrecht 2014 Behavioral economics, Environmental policy, Nudge , Corporate social responsibility, Environmental psychology., 3 2014 58 7 Environmental and Resource Economics 335 351 http://hdl.handle.net/10.1007/s10640-014-9783-y text/html Access to full text is restricted to subscribers. Rachel Croson Nicolas Treich ntreich@toulouse.inra.fr
oai:RePEc:kap:enreec:v:28:y:2004:i:2:p:233-2492020-08-08RePEc:kap:enreec
article Altruism and the Economic Values of Environmental and Social Policies Altruism is a type of non-use value which can have different definitions depending on the type of goods entering the utility function of the altruists and their expectations about the contributions of others. The purpose of this paper is to measure the trade-offs between different types of altruist values originating from social and environmental policies. Environmental policies are concerned with reducing health effects from a power plant while social policies involve both the attainment of public facilities for education and leisure and an increase in the income of the affected population. The empirical application utilizes a choice experiment technique which allows for valuation of multiple goods. Health effects are decomposed into the values of the risk of becoming ill, the duration of the episodes and the limitations imposed by illness. Altruist values are elicited from a population that is not affected by pollution. Results show that altruism is significant for policies directed to reducing health effects and improving the income level of the affected population, whereas there is egoism for a policy aimed at improving public facilities in the polluted suburb. The value of altruism is significantly influenced by the expectations of net benefits to be received by the affected population. Copyright Kluwer Academic Publishers 2004 altruism, choice experiments, health effects, pollution, valuation, 2 2004 28 6 Environmental and Resource Economics 233 249 http://hdl.handle.net/10.1023/B:EARE.0000029919.95464.0b text/html Access to full text is restricted to subscribers. María Vázquez Rodríguez maxose@uvigo.es Carmelo León
oai:RePEc:kap:enreec:v:38:y:2007:i:2:p:165-1882020-08-08RePEc:kap:enreec
article Maritime trade and migratory species management to protect biodiversity Maritime trade, Transboundary pollution, Invasive species, Empirical game, C79, F13, Q25, 2 2007 38 10 Environmental and Resource Economics 165 188 http://hdl.handle.net/10.1007/s10640-006-9069-0 text/html Access to full text is restricted to subscribers. Linda Fernandez linda.fernandez@ucr.edu
oai:RePEc:kap:enreec:v:62:y:2015:i:3:p:521-5472020-08-08RePEc:kap:enreec
article On the Timing of Climate Agreements A central issue in climate policy is the question whether long-term targets for greenhouse gas emissions should be adopted. This paper analyzes strategic effects related to the timing of such commitments. Using a two-country model, we identify a redistributive effect that undermines long-term cooperation when countries are asymmetric and side payments are unavailable. The effect enables countries to shift rents strategically via their R&D efforts under delayed cooperation. In contrast, a complementarity effect stabilizes long-term cooperation, because early commitments in abatement induce countries to invest more in low-carbon technologies, and create additional knowledge spillovers. Contrasting both effects, we endogenize the timing of climate agreements. Copyright Springer Science+Business Media Dordrecht 2015 Climate treaty, Abatement, Long-term cooperation , Spillover, Strategic delay, D62, F53, H23, Q55, 3 2015 62 11 Environmental and Resource Economics 521 547 http://hdl.handle.net/10.1007/s10640-014-9828-2 text/html Access to full text is restricted to subscribers. Robert Schmidt robert.schmidt.1@staff.hu-berlin.de http://u.hu-berlin.de/schmidt Roland Strausz strauszr@wiwi.hu-berlin.de http://www.wiwi.hu-berlin.de/professuren/vwl/wtm1/mitarbeiter/strausz
oai:RePEc:kap:enreec:v:23:y:2002:i:4:p:379-4012020-08-08RePEc:kap:enreec
article U.S. Equity Markets and Environmental Policy. The Case of Electric Utility Investor Behavior During the Passage of the Clean Air Act Amendments of 1990 We examine electric utilityinvestor reaction surrounding twenty-twomilestones associated with the passage of theClean Air Act Amendments of 1990. Resultssuggest that investors did not react sharply tothe passage of the Amendments. To the extentthat statistically significant effects wereobserved, we interpret the results as moreindicative of investor concern over resolutionof uncertainty surrounding the politicalprocess and resulting provisions than ofconcern over the expected costs of compliancefollowing passage of the Amendments. Weobserved little, if any, difference betweenutilities subject to Phase I restrictions andthose not subject to Phase I. Finally, changesin monthly excess returns appear to haveresulted from changes in U.S. interest ratesand investor concern over power industryderegulation. We view our results as importantbecause any wealth effects due to environmentalregulations represent a real economic costassociated with their implementation. In thissense, we view the results as “good news” forU.S. environmental policy makers. Copyright Kluwer Academic Publishers 2002 acid rain, capital markets, Clean Air Act Amendments, electric utility, event study, valuation, 4 2002 23 12 Environmental and Resource Economics 379 401 http://hdl.handle.net/10.1023/A:1021351226459 text/html Access to full text is restricted to subscribers. J. Diltz diltz@uta.edu
oai:RePEc:kap:enreec:v:44:y:2009:i:4:p:495-5062020-08-08RePEc:kap:enreec
article The Role of Environmental Management in Consumers Preferences for Corporate Social Responsibility Choice experiments, Consumer preferences, Corporate social responsibility, Environmental performance, Heuristics mixture modelling, Stated preferences, 4 2009 44 12 Environmental and Resource Economics 495 506 http://hdl.handle.net/10.1007/s10640-009-9297-1 text/html Access to full text is restricted to subscribers. Jorge Araña jarana@daea.ulpgc.es Carmelo León
oai:RePEc:kap:enreec:v:35:y:2006:i:3:p:169-1942020-08-08RePEc:kap:enreec
article An Enforcement-Coalition Model: Fishermen and Authorities Forming Coalitions The paper sets up a four-stage enforcement model of fish quotas. The purpose of the paper is to show how the level of enforcement set by the authorities affects the way fishermen form coalitions. We show that a high level of control effort yields less co-operation among fishermen, while in the case of low control effort, coalitions are somewhat self-enforcing. The paper further discusses how the optimal enforcement level changes when the coalition formation among authorities changes: centralised, partly centralised and decentralised authorities. We show that decentralised authorities set a lower level of control effort compared to the centralised authorities. The theoretical results are illustrated by simulations of the Baltic Sea cod fishery. Copyright Springer Science+Business Media, Inc. 2006 coalition formation, fisheries management, quota enforcement, self-enforcing policy, C70, Q22, Q28, 3 2006 35 11 Environmental and Resource Economics 169 194 http://hdl.handle.net/10.1007/s10640-006-9012-4 text/html Access to full text is restricted to subscribers. Lone Kronbak lg@sam.sdu.dk Marko Lindroos
oai:RePEc:kap:enreec:v:44:y:2009:i:4:p:521-5352020-08-08RePEc:kap:enreec
article Using Labels to Investigate Scope Effects in Stated Preference Methods Scope test, Embedding, Warm glow, Label effect, Choice experiment, Contingent valuation, Biodiversity valuation, National park, 4 2009 44 12 Environmental and Resource Economics 521 535 http://hdl.handle.net/10.1007/s10640-009-9299-z text/html Access to full text is restricted to subscribers. Mikołaj Czajkowski miq@wne.uw.edu.pl Nick Hanley n.d.hanley@stir.ac.uk
oai:RePEc:kap:enreec:v:3:y:1993:i:5:p:487-4942020-08-08RePEc:kap:enreec
article Differentiating use and nonuse values for coastal pond water quality improvements This paper measures the benefits of water quality improvements in three coastal ponds on the island of Martha's Vineyard, Massachusetts, U.S.A. Use, option, and existence values were elicited from Martha's Vineyard property owners by the contingent valuation method. On average, more than half of the total benefits are attributed to existence value. Results from the Heckman selection model show that the exclusion of protest, as well as missing bids, does not cause significant bias in estimating respondents' willingness-to-pay. Socioeconomic characteristics are found to have distinctively different influences on use, option, and existence values. Different model parameters are likely to be estimated depending on which value categories are measured by a selected valuation technique. These findings emphasize the importance of nonuse values from water quality improvements and of socioeconomic characteristics for measuring different categories of values. Copyright Kluwer Academic Publishers 1993 Contingent Valuation, Coastal Pond, Selection Bias, Use Value, Option Value, Existence Value, 5 1993 3 10 Environmental & Resource Economics 487 494 http://hdl.handle.net/10.1007/BF00310250 text/html Access to full text is restricted to subscribers. Yoshiaki Kaoru
oai:RePEc:kap:enreec:v:12:y:1998:i:4:p:403-4232020-08-08RePEc:kap:enreec
article Efficiency Gains Under Exchange-Rate Emission Trading In the case of emission of non-uniformly dispersed pollutants such as SO2 the negative effects depend on the location of the sources. A unit increase at one source must be compensated by either a larger or smaller reduction at another source to keep the negative effects at the same level. Emission trading between countries is possible under the Second Sulphur Protocol. Exchange rate trading and third party problems are studied within a simultaneous model facilitating impositions of various environmental constraints. Simulations based on the negotiated emission quotas are offered. Results indicate potential cost savings of 19%. Copyright Kluwer Academic Publishers 1998 Second Sulphur Protocol, emission trading, exogenous exchange rates, 4 1998 12 12 Environmental and Resource Economics 403 423 http://hdl.handle.net/10.1023/A:1008247511950 text/html Access to full text is restricted to subscribers. Finn Førsund Eric NÆvdal
oai:RePEc:kap:enreec:v:44:y:2009:i:1:p:11-282020-08-08RePEc:kap:enreec
article Pollution Abatement and Productivity Growth: Evidence from Germany, Japan, the Netherlands, and the United States Assigned input model, Pollution abatement, Productivity growth, D24, Q52, 1 2009 44 9 Environmental and Resource Economics 11 28 http://hdl.handle.net/10.1007/s10640-008-9256-2 text/html Access to full text is restricted to subscribers. Deborah Aiken Rolf Färe Shawna Grosskopf Carl Pasurka PASURKA.CARL@EPA.GOV
oai:RePEc:kap:enreec:v:3:y:1993:i:1:p:63-712020-08-08RePEc:kap:enreec
article Comparing continuous and discrete contingent valuation questions This paper explores two commonly used methods to elicit an individual's willingness to pay (WTP) for a public good in contingent valuation studies. Currently, the most preferred method is the “take-it-or-leave” valuation question, or discrete valuation question (DVQ), where the respondent accepts or rejects a suggested cost for the good. The traditional method, the continuous valuation question (CVQ), simply asks an individual to state his WTP for the suggested change in the provision of a public good like cleaner air. We introduce a simple way to compare the results from these two methods. We also test the anchoring behavior suggested in the psychological literature on choice under uncertainty. The results do not support the anchoring hypothesis, but suggest the hypothesis that people perceive the two tested valuation questions differently. Copyright Kluwer Academic Publishers 1993 Contingent valuation, valuation questions, anchoring, non-parametrics, 1 1993 3 2 Environmental & Resource Economics 63 71 http://hdl.handle.net/10.1007/BF00338320 text/html Access to full text is restricted to subscribers. Bengt Kriström
oai:RePEc:kap:enreec:v:54:y:2013:i:2:p:155-1592020-08-08RePEc:kap:enreec
article Rio+20: Looking Back at 20 Years of Environmental and Resource Economics Twenty years on from the Rio ’92 conference, we must face the fact that there have been a few successes but more failures. Scientific complexity, uncertainty, short-termism inherent in politics, the free-rider problem, and issues of fairness are part of the explanation for the lack of progress, but we point to more fundamental motivational problems. It is time to assess our responsibility as economists in the field of environment and resources. Our scientific contribution has been misleading because our models are structurally incapable of addressing major concerns. The cost-benefit test is not fit to assess large-scale resource conservation projects, including climate abatement. This understanding was already present during the Rio ‘92 summit, but the problems, while identified, have not been resolved twenty years later. The contribution from theory, through the sustainability paradigm of non-decreasing welfare, has turned out ineffective. It does not provide us with tools for designing a better future for our children. Instead, it risks choosing a constant welfare path, with knowledge increasing but natural resources deteriorating, while not properly analyzing the richer possibilities for a better future that nature and creativity imply. It is time for our profession to search for a more constructive contribution in theory and practice. Copyright Springer Science+Business Media Dordrecht 2013 Rio Earth summit, Sustainability, Climate change, 2 2013 54 2 Environmental and Resource Economics 155 159 http://hdl.handle.net/10.1007/s10640-012-9627-6 text/html Access to full text is restricted to subscribers. Reyer Gerlagh r.gerlagh@uvt.nl Thomas Sterner thomas.sterner@economics.gu.se
oai:RePEc:kap:enreec:v:55:y:2013:i:4:p:469-4742020-08-08RePEc:kap:enreec
article People and the Planet 4 2013 55 8 Environmental and Resource Economics 469 474 http://hdl.handle.net/10.1007/s10640-013-9681-8 text/html Access to full text is restricted to subscribers. John Sulston jsulston@yahoo.co.uk Marie Rumsby Nick Green
oai:RePEc:kap:enreec:v:45:y:2010:i:1:p:25-482020-08-08RePEc:kap:enreec
article A Dynamic Model for International Environmental Agreements Environment, International agreements, Dynamic game, Replicator dynamics, Non-cooperative game, 1 2010 45 1 Environmental and Resource Economics 25 48 http://hdl.handle.net/10.1007/s10640-009-9304-6 text/html Access to full text is restricted to subscribers. Michèle Breton michele.breton@hec.ca Lucia Sbragia lucia.sbragia@hec.ca Georges Zaccour georges.zaccour@gerad.ca
oai:RePEc:kap:enreec:v:32:y:2005:i:1:p:35-532020-08-08RePEc:kap:enreec
article Scientific Numerology, Preference Anomalies, and Environmental Policymaking Recently an abundance of experimental evidence has been gathered that is consonant with the notion that individual preferences are inconsistent and unstable. These empirical results potentially undermine the theoretical foundation of welfare economics, as the degree of preference lability claimed suggests that perhaps no optimization principles underlie even the most straightforward of choices. Yet policymakers in the environmental arena continue to prescribe policies based on economics-based methods that are constructed on the very principles that have been directly refuted. Are policymakers creatures of habit that move at glacial speed or is there something deeper behind their inertness? In this study, I explore this issue within the U.S. context and argue that there is some rationality behind current public policy decisionmaking. I then explore whether the empirical evidence supports the view that policymakers should take preference anomalies seriously. As a case study, I focus on some of my recent findings on preference inconsistencies in the marketplace. Copyright Springer 2005 anomalies, government policy, 1 2005 32 09 Environmental and Resource Economics 35 53 http://hdl.handle.net/10.1007/s10640-005-6027-1 text/html Access to full text is restricted to subscribers. John List Jlist@arec.umd.edu
oai:RePEc:kap:enreec:v:6:y:1995:i:1:p:1-212020-08-08RePEc:kap:enreec
article Transferable quotas, enforcement costs and typical firms: An empirical application to the Norwegian trawler fleet An alternative to traditional regulations of fisheries to avoid rent dissipation is the use of individual transferable quotas (ITQ s ) where prices in the quota market provide the necessary information to owners of harvest rights to contract with each other. However, even under such a decentralized regime, information on the underlying technology of the fishing vessels is also necessary. First, since most fisheries consist of many interrelated production processes, in order to avoid rent dissipation by discarding wrong output mix etc., the structure of production in the multispecies fishery must be known to design a proper quota system. Second, an ITQ system may create incentives for misreporting by understating the actual catch. This may especially be the case where the expected degree of self-enforcement is low. The paper proposes a way to reduce the information requirements under regulation with asymmetric information by constructing a typical firm and comparing performance for the other vessels to this firm. Based on the typical firm, and if the industry is relatively homogenous, the performance and hence catch of any other firm in the industry can be predicted within a certain range. Further, the paper applies this idea to the Norwegian trawler fleet to assess the production structure in terms of jointness, input-output separability, and the supply and demand elasticities for the fishing firms. This information characterizes the fishery and thus how the quota system may be designed and how to construct a yardstick in order to reduce the enforcement cost under a decentralized regulation of ITQs. Copyright Kluwer Academic Publishers 1995 Transferable quotas, enforcement costs, profit functions, 1 1995 6 7 Environmental & Resource Economics 1 21 http://hdl.handle.net/10.1007/BF00691408 text/html Access to full text is restricted to subscribers. Kjell Salvanes Dale Squires
oai:RePEc:kap:enreec:v:8:y:1996:i:3:p:351-3662020-08-08RePEc:kap:enreec
article Futures markets, price stabilization and efficient exploitation of exhaustible resources Markets for natural resource futures contracts and cash forward contracts experience a rapid growth. According to theory, this should result in more efficient resource depletion, implying that price formation is more consistent with Hotelling's rule. The rationale of this stabilization effect is briefly discussed. Next, we analyze the impact of expanding futures markets on the behaviour of individual resource owners trading on the cash market. Using a simple pulse extraction model, we demonstrate that the expected time of depletion can shift to the present or the future, and that utility of exploitation can go up or down, as market prices are stabilized. Copyright Kluwer Academic Publishers 1996 efficiency, futures markets, natural resource management, price stabilisation, risk aversion, 3 1996 8 10 Environmental & Resource Economics 351 366 http://hdl.handle.net/10.1007/BF00339082 text/html Access to full text is restricted to subscribers. Erwin Bulte Joost Pennings Wim Heijman
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article Transboundary pollution problems, environmental policy and international cooperation: An introduction 2 1992 2 3 Environmental & Resource Economics 107 116 http://hdl.handle.net/10.1007/BF00338238 text/html Access to full text is restricted to subscribers. Henk Folmer Ignazio Musu
oai:RePEc:kap:enreec:v:35:y:2006:i:3:p:195-2202020-08-08RePEc:kap:enreec
article “It Pays to be Green” – A Premature Conclusion? It has been claimed that good environmental performance can improve firms’ economic performance. However, because of e.g. data limitations, the methods applied in most previous quantitative empirical studies on effects of environmental performance on economic performance of firms suffer from several shortcomings. We discuss these shortcomings and conclude that previously applied methods are unsatisfactory as support for a conclusion that it pays for firms to be green. Then we illustrate the consequences of these shortcomings by performing several regression analyses of the effect of environmental performance on economic performance using a panel data set of Norwegian plants. A pooled regression where observable firm characteristics like e.g. size or industry are controlled for, confirms a positive effect of environmental performance on economic performance. However, the estimated positive effect could be due to omitted unobserved variables like management or technology. When the regression model controls for unobserved plant heterogeneity, the effect is generally no longer statistically significant. Hence, although greener plants tend to perform economically better, the analysis provides little support for the claim that it is because they are greener. These empirical findings further indicate that a conclusion that it pays to be green is premature. Copyright Springer Science+Business Media, Inc. 2006 economic performance, environmental performance, environmental regulations, pays to be green, Q25, Q28, K23, 3 2006 35 11 Environmental and Resource Economics 195 220 http://hdl.handle.net/10.1007/s10640-006-9013-3 text/html Access to full text is restricted to subscribers. Kjetil Telle kjetil.telle@ssb.no
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article Disentangling the Pure Time Effect From Site and Preference Heterogeneity Effects in Benefit Transfer: An Empirical Investigation of Transferability Two identical open-ended contingent valuation surveys assessing willingness-to-pay for better protection against flooding were administered in 2005 and 2010 at the same site. The 2010 survey was administered to the same respondents as those interviewed in 2005 as well as to new participants. This experimental design allows us to separate the pure temporal dimension from the spatial and social dimensions of transferability, thereby permitting an investigation of the temporal reliability associated with a transfer of value estimates over a 5-year time horizon. Having isolated the pure effect of time, the design further allows assessing the social dimension of transferability. Copyright Springer Science+Business Media Dordrecht 2014 Open-ended contingent valuation, Benefit transfer, Transferability, Transfer error, Temporal reliability, 4 2014 59 12 Environmental and Resource Economics 583 611 http://hdl.handle.net/10.1007/s10640-013-9751-y text/html Access to full text is restricted to subscribers. Gebeyehu Fetene gebefe@transport.dtu.dk Søren Olsen sobo@ifro.ku.dk Ole Bonnichsen ole@ifro.ku.dk
oai:RePEc:kap:enreec:v:11:y:1998:i:1:p:79-922020-08-08RePEc:kap:enreec
article ITQ Systems in Multifleet Fisheries Optimum management of a particular fishery is analyzed based on an ITQ system. For this purpose, a multifleet deterministic bioeconomic model is developed and applied. Using data on the fishery studied here, estimates are made of the stock dynamics of fish and the technology used by the fleets operating in said fishery. Optimum levels of stock, effort and catch are determined. Finally, we present economic policy recommendations for this fishery and considerations for applying regulatory measures. Copyright Kluwer Academic Publishers 1998 deterministic bioeconomic model, multifleet fisheries, ITQ system, Iberoatlantic hake fishery, 1 1998 11 1 Environmental and Resource Economics 79 92 http://hdl.handle.net/10.1023/A:1008297328943 text/html Access to full text is restricted to subscribers. M. Garza-Gil dgarza@uvigo.es
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article Endogenous Discounting and Climate Policy Abrupt climate change, Hazard rate, Discounting, Economic growth, Emission policy, H23, H41, O40, Q4, 4 2009 44 12 Environmental and Resource Economics 507 520 http://hdl.handle.net/10.1007/s10640-009-9298-0 text/html Access to full text is restricted to subscribers. Yacov Tsur tsur@agri.huji.ac.il http://www.agri.huji.ac.il/~tsury/ Amos Zemel amos@bgu.ac.il
oai:RePEc:kap:enreec:v:17:y:2000:i:1:p:109-1232020-08-08RePEc:kap:enreec
article Air Pollution and ‘Dirty’ Industries: How and Why Does the Composition of Manufacturing Output Change with Economic Development? This paper examines the impact on air pollution ofchanges in the composition of manufacturing output indeveloped and developing countries. Pollutionemissions from manufacturing output are estimated ina manner which holds constant the effect of technologyand regulations allowing the impact of compositional changes alone on pollution to beestimated. The paper has three main findings; (1) theinverted-U estimated between per capita income and thepollution intensity of GDP arises due to both thecomposition of manufacturing becoming cleaner and theshare of manufacturing output in GDP falling.Compositional changes alone are not responsible forthe inverted-U between per capita income and percapita emissions; (2) changes to the composition ofmanufacturing output are consistent with the pollutionhaven hypothesis, however there is clear evidence thatrising per capita incomes are associated with afalling income elasticity of demand for `dirty'products. This fact may explain the compositionalchanges that occur with development; (3) in additionto the income elasticity effect, the analysis suggeststhat land prices and to a lesser extent the prices oflabour and capital, determine the proportion of dirtyindustry within a country's manufacturing sector. Copyright Kluwer Academic Publishers 2000 economic development, industrial composition, pollution havens, air pollution, 1 2000 17 9 Environmental and Resource Economics 109 123 http://hdl.handle.net/10.1023/A:1008388221831 text/html Access to full text is restricted to subscribers. Matthew Cole M.A.Cole.1@bham.ac.uk
oai:RePEc:kap:enreec:v:39:y:2008:i:1:p:9-162020-08-08RePEc:kap:enreec
article Nature’s Economy and the Human Economy Economy, Ecosystems, Natural capital, Population, Consumption, Economic growth, 1 2008 39 1 Environmental and Resource Economics 9 16 http://hdl.handle.net/10.1007/s10640-007-9177-5 text/html Access to full text is restricted to subscribers. Paul Ehrlich pre@stanford.edu Anne Ehrlich
oai:RePEc:kap:enreec:v:65:y:2016:i:1:d:10.1007_s10640-015-9940-y2020-08-08RePEc:kap:enreec
article Erratum to: Equity as a Prerequisite for Stability of Cooperation on Global Public Good Provision 1 2016 65 9 5 Environmental and Resource Economics 79 79 http://link.springer.com/10.1007/s10640-015-9940-y text/html Abstract Wolfgang Buchholz wolfgang.buchholz@ur.de University of Regensburg Alexander Haupt Alexander.haupt@plymouth.ac.uk Plymouth University Wolfgang Peters Peters@europa-uni.de European University Viadrina
oai:RePEc:kap:enreec:v:65:y:2016:i:2:d:10.1007_s10640-015-9905-12020-08-08RePEc:kap:enreec
article Are Fast Responses More Random? Testing the Effect of Response Time on Scale in an Online Choice Experiment Abstract Scepticism over stated preference surveys conducted online revolves around the concerns over “professional respondents” who might rush through the questionnaire without sufficiently considering the information provided. To gain insight on the validity of this phenomenon and test the effect of response time on choice randomness, this study makes use of a recently conducted choice experiment survey on ecological and amenity effects of an offshore windfarm in the UK. The positive relationship between self-rated and inferred attribute attendance and response time is taken as evidence for a link between response time and cognitive effort. Subsequently, the generalised multinomial logit model is employed to test the effect of response time on scale, which indicates the weight of the deterministic relative to the error component in the random utility model. Results show that longer response time increases scale, i.e. decreases choice randomness. This positive scale effect of response time is further found to be non-linear and wear off at some point beyond which extreme response time decreases scale. While response time does not systematically affect welfare estimates, higher response time increases the precision of such estimates. These effects persist when self-reported choice certainty is controlled for. Implications of the results for online stated preference surveys and further research are discussed. Attribute non-attendance, Choice experiment, Generalised multinomial logit, Offshore windfarm, Online survey, Response time, Scale heterogeneity 2 2016 65 10 4 Environmental and Resource Economics 389 413 C81 Q51 H43 http://link.springer.com/10.1007/s10640-015-9905-1 text/html Abstract Tobias Börger tobo@pml.ac.uk Plymouth Marine Laboratory
oai:RePEc:kap:enreec:v:32:y:2005:i:1:p:55-892020-08-08RePEc:kap:enreec
article Preference Anomalies, Preference Elicitation and the Discovered Preference Hypothesis There is wide-ranging evidence, much of it deriving from economics experiments, of ‘anomalies’ in behaviour that challenge standard preference theories. This paper explores the implications of these anomalies for preference elicitation methods. Because methods that are used to inform public policy, such as contingent valuation, are based on standard preference theories, their validity may be called into question by the anomaly data. However, on a new interpretation, these anomalies do not contradict standard theory but are errors in stated preference that can be expected to disappear as people become more experienced in relevant decision environments. We explore the evidence for this interpretation and what implications follow for preference elicitation methodology. Copyright Springer 2005 contingent valuation, experiments, learning, preference elicitation, preference theory, 1 2005 32 09 Environmental and Resource Economics 55 89 http://hdl.handle.net/10.1007/s10640-005-6028-0 text/html Access to full text is restricted to subscribers. Jacinto Braga Chris Starmer chris.starmer@nottingham.ac.uk
oai:RePEc:kap:enreec:v:3:y:1993:i:4:p:381-3942020-08-08RePEc:kap:enreec
article Hedonic models and air pollution: Twenty-five years and counting This paper reports a meta analysis of how effectively hedonic property models have detected the influence of air pollution on housing prices. Probit estimates are reported describing how data, model specification, and local property market conditions in cities represented in thirty-seven studies influence the ability of hedonic models to uncover negative, statistically significant relationships between housing prices and air pollution measures. Copyright Kluwer Academic Publishers 1993 Hedonic models, air pollution, meta analysis, 4 1993 3 8 Environmental and Resource Economics 381 394 http://hdl.handle.net/10.1007/BF00418818 text/html Access to full text is restricted to subscribers. V. Smith Ju Huang
oai:RePEc:kap:enreec:v:18:y:2001:i:1:p:113-1272020-08-08RePEc:kap:enreec
article Is Ecolabelling a Reliable Environmental Policy Measure? The rationale of ecolabelling is to enable firms to reap the willingness-to-payfor the environmental attributes of goods by helping consumers toidentify ``green'' products. By so doing, ecolabelling is expected tostimulate spontaneous environmental innovation and to reduce aggregatedpollution. Our analysis however outlines situations under whichecolabelling could induce perverse effects, namely increased investment inconventional technologies before the labels are awarded, and examineswhether restricting the issue of labels could constitute an antidote. Copyright Kluwer Academic Publishers 2001 ecolabelling, environmental policy, investment decisions, irreversibility, real option theory, 1 2001 18 1 Environmental and Resource Economics 113 127 http://hdl.handle.net/10.1023/A:1011101604084 text/html Access to full text is restricted to subscribers. Cesare Dosi dosi@decon.unipd.it Michele Moretto moretto@decon.unipd.it
oai:RePEc:kap:enreec:v:48:y:2011:i:2:p:243-2672020-08-08RePEc:kap:enreec
article How to Get There From Here: Ecological and Economic Dynamics of Ecosystem Service Provision Optimal control, Bioeconomic, Rebuilding, Collocation, Habitat, Q22, 2 2011 48 2 Environmental and Resource Economics 243 267 http://hdl.handle.net/10.1007/s10640-010-9410-5 text/html Access to full text is restricted to subscribers. James Sanchirico jsanchirico@ucdavis.edu Michael Springborn mspringborn@ucdavis.edu
oai:RePEc:kap:enreec:v:36:y:2007:i:2:p:143-1622020-08-08RePEc:kap:enreec
article Cost Uncertainty and Unilateral Abatement Unilateral abatement is sometimes advocated in order to set a good example that will make other countries follow. The aim of this paper is to investigate whether existence of correlated cost uncertainty provides an incentive for a country to undertake unilateral abatement. The theoretical model is driven by two main mechanisms; first, a learning effect, as the follower country might reduce its risk premium as it can observe the cost level in the leader country. Second, there is the public good effect, i.e., the marginal benefit of abatement declines when abatement is a public good and other countries contribute to pollution reductions. Results shows that unilateral abatement would be efficient in reducing uncertainty about the unit costs of abatement if a country with low cost uncertainty would undertake abatement first, while a country with initially high cost uncertainty would follow. However, countries may prefer to act simultaneously because of the larger uncertainties that are inherent in a sequential game. Copyright Springer Science+Business Media, Inc. 2007 Baltic Sea, cost uncertainty, Cournot, learning effect, nitrogen, Poland, Stackelberg, Sweden, unilateral abatement, C73, Q25, Q52, Q58, 2 2007 36 2 Environmental and Resource Economics 143 162 http://hdl.handle.net/10.1007/s10640-006-9018-y text/html Access to full text is restricted to subscribers. Katarina Elofsson Katarina.Elofsson@agriculture.ministry.se
oai:RePEc:kap:enreec:v:34:y:2006:i:3:p:419-4372020-08-08RePEc:kap:enreec
article WTP- and QALY-Based Approaches to Valuing Health for Policy: Common Ground and Disputed Territory This paper discusses links between two approaches to the value of health: the willingness to pay approach of environmental economics and the quality-adjusted life year approach of health economics. The approaches are used in cost-benefit and cost-effectiveness analyses of health interventions. Despite fundamental differences in the decision contexts and conceptual foundations of the two approaches, in current practice they are likely to lead to similar policy decisions. The paper also shows how research on the quality-adjusted life year (QALY) can be used to fill in gaps in the willingness to pay literature. The paper sketches a simple model that shows how to ``QALY-fy the value of a statistical life;'' i.e., how to combine QALY estimates with estimates of the value of a statistical life to estimate willingness to pay for morbidity risks. Copyright Springer Science+Business Media, Inc. 2006 cost-benefit analysis, cost-effectiveness analysis, willingness to pay, QALY, I18, I31, J17, 3 2006 34 7 Environmental and Resource Economics 419 437 http://hdl.handle.net/10.1007/s10640-006-9003-5 text/html Access to full text is restricted to subscribers. Don Kenkel dsk10@cornell.edu
oai:RePEc:kap:enreec:v:38:y:2007:i:4:p:545-5722020-08-08RePEc:kap:enreec
article Hot air for sale: a quantitative assessment of Russia’s near-term climate policy options Market power, Hot air, Climate policy, D42, Q25, 4 2007 38 12 Environmental and Resource Economics 545 572 http://hdl.handle.net/10.1007/s10640-007-9089-4 text/html Access to full text is restricted to subscribers. Christoph Böhringer boehringer@uni-oldenburg.de Ulf Moslener moslener@zew.de Bodo Sturm sturm@zew.de
oai:RePEc:kap:enreec:v:14:y:1999:i:1:p:95-1172020-08-08RePEc:kap:enreec
article The Validity of Environmental Benefits Transfer: Further Empirical Testing This paper provides further empirical evidence of the validity of environmental benefits transfer based on CV studies by expanding the analysis to include control factors which have not been accounted for in previous studies. These factors refer to differences in respondent attitudes. Traditional population characteristics were taken into account, but these variables do not explain why respondents from the same socio-economic group may still hold different beliefs, norms or values and hence have different attitudes and consequently state different WTP amounts. The test results are mixed. The function transfer approach is valid in one case, but is rejected in the 3 other cases investigated in this paper. We provide further evidence that in the case of statistically valid benefits transfer, the function approach results in a more robust benefits transfer than the unit value approach. We also show that the equality of coefficient estimates is a necessary, but insufficient condition for valid benefit function transfer and discuss the implications for previous and future validity testing. Copyright Kluwer Academic Publishers 1999 benefits transfer, contingent valuation, environmental valuation, validity testing, 1 1999 14 7 Environmental and Resource Economics 95 117 http://hdl.handle.net/10.1023/A:1008377604893 text/html Access to full text is restricted to subscribers. Roy Brouwer r.brouwer@uea.ac.uk Frank Spaninks
oai:RePEc:kap:enreec:v:36:y:2007:i:1:p:85-1122020-08-08RePEc:kap:enreec
article Sectoral Energy- and Labour-Productivity Convergence This paper empirically investigates the development of cross-country differences in energy- and labour productivity. The analysis is performed at a detailed sectoral level for 14 OECD countries, covering the period 1970–1997. A σ-convergence analysis reveals that the development over time of the cross-country variation in productivity performance differs across sectors as well as across different levels of aggregation. Both patterns of convergence as well as divergence are found. Cross-country variation of productivity levels is typically larger for energy than for labour. A β-convergence analysis provides support for the hypothesis that in most sectors lagging countries tend to catch up with technological leaders, in particular in terms of energy productivity. Moreover, the results show that convergence is conditional, meaning that productivity levels converge to country-specific steady states. Energy prices and wages are shown to positively affect energy- and labour-productivity growth, respectively. We also find evidence for the importance of economies of scale, whereas the investment share, openness and specialization play only a modest role in explaining cross-country variation in energy- and labour-productivity growth. Copyright Springer Science+Business Media, Inc. 2007 convergence, energy productivity, labour productivity, sectoral analysis, O13, O47, O5, Q43, 1 2007 36 1 Environmental and Resource Economics 85 112 http://hdl.handle.net/10.1007/s10640-006-9042-y text/html Access to full text is restricted to subscribers. Peter Mulder Henri Groot hgroot@feweb.vu.nl
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article Editorial: Professor David W. Pearce 4 2005 32 12 Environmental & Resource Economics 443 444 http://hdl.handle.net/10.1007/s10640-005-4083-1 text/html Access to full text is restricted to subscribers. Kerry Turner Ian Bateman
oai:RePEc:kap:enreec:v:60:y:2015:i:1:p:17-352020-08-08RePEc:kap:enreec
article Emissions Taxes and Abatement Regulation Under Uncertainty We consider environmental regulation in a context where firms invest in abatement technology under conditions of uncertainty about subsequent abatement cost, but can subsequently adjust output in the light of true marginal abatement cost. Where an emissions tax is the only available instrument, policy faces a trade-off between the incentive to invest in abatement technology and efficiency in subsequent output decisions. More efficient outcomes can be achieved by supplementing the emissions tax with direct regulation of abatement technology, or by combining the tax with an abatement technology investment subsidy. We compare the properties of these alternative instrument combinations. Copyright The Author(s) 2015 Externalities, Pigouvian taxes, Regulation, Subsidies, H23, 1 2015 60 1 Environmental and Resource Economics 17 35 http://hdl.handle.net/10.1007/s10640-013-9755-7 text/html Access to full text is restricted to subscribers. Vidar Christiansen vidar.christiansen@econ.uio.no Stephen Smith stephen.smith@ucl.ac.uk
oai:RePEc:kap:enreec:v:36:y:2007:i:2:p:237-2542020-08-08RePEc:kap:enreec
article Environmental Product Differentiation and Environmental Awareness In this paper, we have considered a duopolistic model of environmental product differentiation with two types of consumers (green and brown) to analyze how environmental awareness affects the environment. “Green” consumers value the physical and environmental attributes of the good they purchase while “brown” consumers only value the physical attributes. We find that more environmental awareness may not be good news for the environment as the firm that produces the good without environmental attributes may increase its sales. The result depends on the degree of product differentiation and the cost to achieve it. Social welfare can also be inversely related to environmental awareness if the negative environmental effect dominates the positive market effect. Copyright Springer Science+Business Media, Inc. 2007 brown consumers, environmental awareness, polluting emissions, green consumers, L15, L51, Q20, 2 2007 36 2 Environmental and Resource Economics 237 254 http://hdl.handle.net/10.1007/s10640-006-9026-y text/html Access to full text is restricted to subscribers. Roberto Rodríguez-Ibeas roberto.rodriguez@dee.unirioja.es
oai:RePEc:kap:enreec:v:62:y:2015:i:1:p:189-2062020-08-08RePEc:kap:enreec
article Green Technology Transfers and Border Tax Adjustments We develop a two-country general equilibrium model of foreign technology transfers tied to environmental clean-up and border tax adjustments in the presence of transboundary pollution. Pollution is generated in the aid recipient as a by-product in the production of a ‘dirty’ good, which it consumes, as well as exports to the donor country. In contrast to the literature which typically treats aid as a monetary transfer, we assume that foreign aid consists of a transfer of environmental technology that lowers the cost of public clean-up. We also consider a border tax adjustment (BTA) as a secondary policy instrument used in order to internalize the residual transboundary externality. We study the environmental and welfare outcomes of the technology transfer and the BTA as well as the interaction between the two policy instruments. We derive conditions under which the additional presence of a BTA may lead to a lower transfer and less public pollution abatement in the recipient, with counter-productive consequences for both the environment and welfare. Contrary to intuition, we find that the green technology transfer and the border tax adjustment are not always complements. Copyright Springer Science+Business Media Dordrecht 2015 Green aid, Technology transfer, Border tax adjustments, Abatement, Transboundary pollution, Environment, International trade, F18, F35, O13, Q28, 1 2015 62 9 Environmental and Resource Economics 189 206 http://hdl.handle.net/10.1007/s10640-014-9821-9 text/html Access to full text is restricted to subscribers. Alain-Désiré Nimubona animubon@uwaterloo.ca Horatiu Rus hrus@uwaterloo.ca
oai:RePEc:kap:enreec:v:23:y:2002:i:2:p:133-1482020-08-08RePEc:kap:enreec
article Dynamic Efficiency with Multi-Pollutants and Multi-Targets The Case of Acidification and Tropospheric Ozone Formation in Europe In this paper we consider two important aspectsin the complex problem of transboundary airpollution in Europe, namely (i) theinterdependence of the problems of troposphericozone and acidification and (ii) the dynamicprocesses related to soil acidification. Wedevelop an optimal control model to analyse theinteraction between acidification as a stockpollutant and tropospheric ozone as a flowpollutant for several countries. Using acost-benefit framework an analysis is performedto determine efficient emission paths fornitrogen oxides, sulphur dioxide and volatileorganic compounds. The model jointly analysesacidification and ozone. The current Europeanreduction plans do not fully take into accountthe multi-pollutants multi-targets nature ofthe problem. In addition, the plans allow fortemporary exceedance of critical loads withoutconsidering the consequences for the temporaldevelopment of the soil quality. This papershows the complex relations and interactionswhich one should deal with while designingpolicies that are efficient with respect to thecross-effects between the differentenvironmental problems. It also shows howdynamic efficient abatement strategies wouldlook if the cross effects and the dynamicprocesses in soil acidification are explicitlyincorporated in the analysis. Copyright Kluwer Academic Publishers 2002 acid rain, acidification, cost benefit analysis, environmental economics, multi-pollutants, optimal control, transboundary air pollution, tropospheric ozone, 2 2002 23 10 Environmental and Resource Economics 133 148 http://hdl.handle.net/10.1023/A:1021234423189 text/html Access to full text is restricted to subscribers. Erik Schmieman e.c.schmieman@minez.nl Ekko van Ierland Leen Hordijk
oai:RePEc:kap:enreec:v:57:y:2014:i:1:p:101-1162020-08-08RePEc:kap:enreec
article Noxious Facilities, Environmental Damages, and Efficient Randomized Siting This paper considers the efficient siting of a noxious facility that causes environmental damages (for example, increased pollution) in the host community. The analysis shows that there can be multiple efficient locations without transfers, and that an efficient location need not have the smallest WTA or WTP. In general, there exist randomized outcomes that are ex ante efficient and that Pareto dominate efficient outcomes. The analysis also shows that a community’s most preferred lottery never provides full insurance. Under some conditions, lotteries with no host compensation are Pareto superior to those with compensation. Copyright Springer Science+Business Media Dordrecht 2014 Siting mechanisms, Noxious facilities, Lotteries , LULU, NIMBY, Q53, R52, R53, 1 2014 57 1 Environmental and Resource Economics 101 116 http://hdl.handle.net/10.1007/s10640-013-9668-5 text/html Access to full text is restricted to subscribers. Rudy Santore rsantore@utk.edu
oai:RePEc:kap:enreec:v:63:y:2016:i:1:p:57-772020-08-08RePEc:kap:enreec
article Empirics of the International Inequality in $$\hbox {CO}_{2}$$ CO 2 Emissions Intensity: Explanatory Factors According to Complementary Decomposition Methodologies This paper analyses the international inequalities in $$\hbox {CO}_{2}$$ CO 2 emissions intensity for the period 1971–2009 and assesses explanatory factors. Group, additive and multiplicative methodologies of inequality decomposition are employed. The first allows us to understand the role of regional groups; the second allows us to investigate the role of different fossil energy sources (coal, oil and gas); and the third allows us to clarify the separated role of the carbonisation index and the energy intensity in the pattern observed for inequalities in $$\hbox {CO}_{2}$$ CO 2 intensities. The results show that, first, the reduction in global emissions intensity has coincided with a significant reduction in international inequality. Second, the bulk of this inequality and its reduction are attributed to differences between the groups of countries considered. Third, coal is the main energy source explaining these inequalities, although the growth in the relative contribution of gas is also remarkable. Fourth, the bulk of inequalities between countries and its decline are explained by differences in energy intensities, although there are significant differences in the patterns demonstrated by different groups of countries. The policy implications of these results are discussed. Copyright Springer Science+Business Media Dordrecht 2016 $$\hbox {CO}_{2}$$ CO 2 international distribution, Inequality decomposition, $$\hbox {CO}_{2}$$ CO 2 emissions intensity, D39, Q43, Q56, 1 2016 63 1 Environmental and Resource Economics 57 77 http://hdl.handle.net/10.1007/s10640-014-9840-6 text/html Access to full text is restricted to subscribers. Juan Duro juanantonio.duro@urv.net Jordi Teixidó-Figueras jordijosep.teixido@urv.cat Emilio Padilla emilio.padilla@uab.es
oai:RePEc:kap:enreec:v:48:y:2011:i:1:p:59-702020-08-08RePEc:kap:enreec
article Does Democracy Lead to a Better Environment? Deforestation and the Democratic Transition Peak Deforestation, Democracy, Economic development, Environmental degradation, Environmental kuznets curve, Political development, Q56, Q23, 1 2011 48 1 Environmental and Resource Economics 59 70 http://hdl.handle.net/10.1007/s10640-010-9397-y text/html Access to full text is restricted to subscribers. Meilanie Buitenzorgy meilanie.buitenzorgy@ipb.ac.id Arthur P. J. Mol Arthur.Mol@wur.nl
oai:RePEc:kap:enreec:v:36:y:2007:i:4:p:427-4492020-08-08RePEc:kap:enreec
article An Empirical Examination of the Pollution Haven Hypothesis for India: Towards a Green Leontief Paradox? Using input–output analysis, we examine whether India can be regarded as a pollution haven. We calculate the extra CO 2 , SO 2 and NO x emissions induced by 1 billion rupees of additional exports. This is compared with the reduction of Indian pollution caused by an import increase of equal size. In contrast to what the pollution haven hypothesis states for developing countries, we find that India considerably gains from extra trade. Comparing 1996/1997 with 1991/1992, the gains have only increased, indicating that India has moved␣further away from being a pollution haven. The outcome is robust to changes in the underlying assumptions. Copyright Springer Science+Business Media, Inc. 2007 international trade, environment, pollution haven, input–output analysis, F18, Q32, D57, 4 2007 36 4 Environmental and Resource Economics 427 449 http://hdl.handle.net/10.1007/s10640-006-9036-9 text/html Access to full text is restricted to subscribers. Erik Dietzenbacher h.w.a.dietzenbacher@rug.nl Kakali Mukhopadhyay
oai:RePEc:kap:enreec:v:18:y:2001:i:4:p:355-3662020-08-08RePEc:kap:enreec
article Harvesting versus Biodiversity: An Occam's Razor Version The point of departure for this paper is the familiar prototype fisheriesmodel where a fictitious sole owner harvests a fish population to maximizepresent discounted profits. The paper answers analytically the followingquestion. ``What happens to a policy when the sole owner also valuesbiodiversity, as well as profits?'' It turns out that the size of the steady-state stock and the number of species preserved are both higher, whenspecies diversity is positively valued. This paper provides a sharpcharacterization of the optimal policy in terms of the usual economicparameters and an exogenously introduced willingness-to-pay function forspecies preservation. Copyright Kluwer Academic Publishers 2001 biodiversity, optimal policy, parameters, 4 2001 18 4 Environmental and Resource Economics 355 366 http://hdl.handle.net/10.1023/A:1011184509459 text/html Access to full text is restricted to subscribers. Chuan-Zhong Li Karl-Gustaf Löfgren Martin Weitzman
oai:RePEc:kap:enreec:v:54:y:2013:i:1:p:127-1372020-08-08RePEc:kap:enreec
article The Effects of Bailouts and Soft Budget Constraints on the Environment This paper investigates the effects of financial relief programs, commonly referred to as ‘bailouts’, on pollution. A partial equilibrium soft budget constraint model of the firm is developed to identify the effect of bailouts on the emission decisions of firms. The results from the model indicate that the expectation of bailouts increases ex ante emissions. A more stringent emissions tax is required to achieve the same level of emissions if bailouts are available than if bailouts are not available; however, a tradable permit system will maintain the same emissions level if bailouts are available as when bailouts are not available. Copyright Springer Science+Business Media B.V. 2013 Bailouts, Moral hazard, Pollution, Soft budget constraints, Uncertainty, Q58, H23, P31, 1 2013 54 1 Environmental and Resource Economics 127 137 http://hdl.handle.net/10.1007/s10640-012-9584-0 text/html Access to full text is restricted to subscribers. Joel Wood joel.wood@fraserinstitute.org
oai:RePEc:kap:enreec:v:26:y:2003:i:3:p:493-4942020-08-08RePEc:kap:enreec
article Ian J. Bateman, Richard T. Carson, Brett Day, Michael Hanemann, Nick Hanley, Tannis Hett, Michael Jones-Lee, Graham Loomes, Susana Mourato, Ece Özdemiroglu, David W. Pearce OBE, Robert Sugden, and John Swanson, 2000, Economic Valuation with Stated Preferences: A Manual 3 2003 26 11 Environmental and Resource Economics 493 494 http://hdl.handle.net/10.1023/B:EARE.0000003720.79389.b0 text/html Access to full text is restricted to subscribers. A. Freeman rfreeman@bowdoin.edu
oai:RePEc:kap:enreec:v:64:y:2016:i:3:d:10.1007_s10640-015-9875-32020-08-08RePEc:kap:enreec
article Dynamic Analysis of a Renewable Resource in a Small Open Economy: The Role of Environmental Policies for the Environment Abstract We examine the effects of environmental policies such as a subsidy for reforestation and an export-income tax in a small open economy with a renewable resource. In the small economy, the harvested renewable resources are exported to acquire foreign assets and consumers can invest in the natural resource to preserve it. In the setup, we show how the environmental policies affect the natural resource and the domestic economy. Renewable resources, The effects of environmental policies, Small open economy 3 2016 64 7 2 Environmental and Resource Economics 373 399 F41 H21 Q28 http://link.springer.com/10.1007/s10640-015-9875-3 text/html Abstract Yasuhiro Nakamoto nakamoto@ip.kyusan-u.ac.jp Kyushu Sangyo University Koichi Futagami futagami@econ.osaka-u.ac.jp Osaka University
oai:RePEc:kap:enreec:v:40:y:2008:i:1:p:109-1202020-08-08RePEc:kap:enreec
article Testing for Convergence in Carbon Dioxide Emissions Using a Century of Panel Data Emissions convergence, Panel unit root tests, Common factors, Half-life, C32, C33, Q28, Q54, 1 2008 40 5 Environmental and Resource Economics 109 120 http://hdl.handle.net/10.1007/s10640-007-9143-2 text/html Access to full text is restricted to subscribers. Joakim Westerlund joakim.westerlund@nek.lu.se Syed Basher basher@econ.yorku.ca
oai:RePEc:kap:enreec:v:18:y:2001:i:2:p:219-2312020-08-08RePEc:kap:enreec
article A Model of Competing Jurisdictions with Locally Polluting Environments and Mobile Populations In this model we consider a federation consisting oftwo geographically separated Regional states withlocal taxing authority. The residents of thefederation are identical in preferences and haveexplicit tolerance to pollution. Pollution is local innature and is a by-product of production implying amore highly populated region would generate morepollution. Local authorities in the regions can andwill (in the interest of local residents) engage ingame theoretical taxation strategies. The model isused to illustrate that Nash Equilibrium can resultwherein the two regions have different levels ofenvironmental quality. The resulting Nash conditionsimply for instance that residents of the ``cleanregion'' will subsidize those in the other region tostay in the more polluted environment (in order foreach to accomplish their preferred consumption andenvironmental quality pair). Copyright Kluwer Academic Publishers 2001 efficiency, environment, federation, interregional transfers, pollution, 2 2001 18 2 Environmental and Resource Economics 219 231 http://hdl.handle.net/10.1023/A:1011115932370 text/html Access to full text is restricted to subscribers. Vincent Hildebrand cplourde@dept.econ.yorku.ca Charles Plourde vincent@dept.econ.yorku.ca
oai:RePEc:kap:enreec:v:40:y:2008:i:2:p:195-2152020-08-08RePEc:kap:enreec
article Conservation: From Voluntary Restraint to a Voluntary Price Premium Conservation behavior, Electricity demand, Renewable energy, D1, Q4, Q5, 2 2008 40 6 Environmental and Resource Economics 195 215 http://hdl.handle.net/10.1007/s10640-007-9148-x text/html Access to full text is restricted to subscribers. Matthew Kotchen kotchen@bren.ucsb.edu Michael Moore
oai:RePEc:kap:enreec:v:50:y:2011:i:3:p:389-4032020-08-08RePEc:kap:enreec
article Uncertainty, Learning and Heterogeneity in International Environmental Agreements International environmental agreements, Voluntary contributions to public goods, Climate change, 3 2011 50 11 Environmental and Resource Economics 389 403 http://hdl.handle.net/10.1007/s10640-011-9477-7 text/html Access to full text is restricted to subscribers. Charles Kolstad kolstad@econ.ucsb.edu Alistair Ulph alistair.ulph@manchester.ac.uk
oai:RePEc:kap:enreec:v:9:y:1997:i:3:p:291-3082020-08-08RePEc:kap:enreec
article Health damage of air pollution: An estimate of a dose-response relationship for the Netherlands This paper estimates the dose-response relationship between air pollution and the number of work loss days for the Netherlands. The study is based on illness data (work loss days) for the Dutch labour population and average year concentrations of air pollution in 29 districts. The dose-response relationship has been estimated by means of two different techniques: the ordinary least squares method (OLS) and the one-way fixed-effects method (OWFEM), which we consider to be more adequate. In general health effects are much smaller when OWFEM is applied than if OLS is used. With OWFEM a significant relationship is found between sulphate aerosol (SO 4 ), ammonia (NH 3 ) and the number of work loss days (WLDs). Particulates (TSP), O 3 and SO 2 have no significant effect on the number of WLDs. These results differ from those obtained in studies in the United States, which indicate that particulates (TSP) and other small particles, ozone (O 3 ) and to a lesser extent SO 4 and SO 2 significantly influence the number of WLDs. Copyright Kluwer Academic Publishers 1997 abatement of air pollution, dose-response relationship, health damage, one-way fixed-effects method, 3 1997 9 4 Environmental & Resource Economics 291 308 http://hdl.handle.net/10.1007/BF02441401 text/html Access to full text is restricted to subscribers. Thijs Zuidema Andries Nentjes
oai:RePEc:kap:enreec:v:62:y:2015:i:4:p:811-8362020-08-08RePEc:kap:enreec
article The Stability and Effectiveness of Climate Coalitions We report results from a comparison of numerically calibrated game theoretic integrated assessment models that explore the stability and performance of international coalitions for climate change mitigation. We identify robust results concerning the incentives of different nations to commit themselves to a climate agreement and estimate the extent of greenhouse gas mitigation that can be achieved by stable agreements. We also assess the potential of transfers that redistribute the surplus of cooperation to foster the stability of climate coalitions. In contrast to much of the existing analytical game theoretical literature, we find substantial scope for self-enforcing climate coalitions in most models that close much of the abatement and welfare gap between complete absence of cooperation and full cooperation. This more positive message follows from the use of appropriate transfer schemes that are designed to counteract free riding incentives. Copyright Springer Science+Business Media Dordrecht 2015 Coalition stability, International environmental agreements, Numerical modeling, Transfers, 4 2015 62 12 Environmental and Resource Economics 811 836 http://hdl.handle.net/10.1007/s10640-015-9886-0 text/html Access to full text is restricted to subscribers. Kai Lessmann lessmann@pik-potsdam.de Ulrike Kornek Valentina Bosetti Rob Dellink Johannes Emmerling Johan Eyckmans Miyuki Nagashima Hans-Peter Weikard Zili Yang
oai:RePEc:kap:enreec:v:11:y:1998:i:3:p:587-6022020-08-08RePEc:kap:enreec
article Disclosure Strategies for Pollution Control Disclosure strategies, which involve public and/or private attempts to increase the availability of information on pollution, form the basis for what some have called the third wave in pollution control policy (after legal regulation – the first wave – and market-based instruments – the second wave). While these strategies have become common in natural resource settings (forest certification and organic farming, for example), they are less familiar in a pollution control context. Yet the number of applications in that context is now growing in both OECD and developing countries. This survey will review what we know and don’t know about the use of disclosure strategies to control pollution and conclude with the author's sense of where further research would be particularly helpful. Copyright Kluwer Academic Publishers 1998 information disclosure, pollution control, regulatory reform, 3 1998 11 4 Environmental and Resource Economics 587 602 http://hdl.handle.net/10.1023/A:1008291411492 text/html Access to full text is restricted to subscribers. Tom Tietenberg thtieten@colby.edu
oai:RePEc:kap:enreec:v:38:y:2007:i:3:p:391-4052020-08-08RePEc:kap:enreec
article The irreversibility effect in environmental decisionmaking Decision making under uncertainty, Irreversibility effect, Necessary and sufficient conditions, Nonseparable benefit functions, Q20, Q30, Q51, 3 2007 38 11 Environmental and Resource Economics 391 405 http://hdl.handle.net/10.1007/s10640-007-9083-x text/html Access to full text is restricted to subscribers. Urvashi Narain Michael Hanemann Anthony Fisher fisher@are.berkeley.edu
oai:RePEc:kap:enreec:v:2:y:1992:i:6:p:533-5502020-08-08RePEc:kap:enreec
article Clean technology — Innovation and environmental regulation The development and diffusion of clean technologies has an important role to play in preventing pollution. Government must address the issue of how firms can be given the necessary incentive to develop environmentally sound production techniques and products. This paper focus on how subsidies can — under certain restrictive conditions — stimulate innovation. Subsidization is usually assumed to involve unit subsidies for pollution reduction. Unit subsidies have little to do with the subsidy schemes in actual use. Our focus is on subsidy schemes specifically designed to promote the development of clean technologies through the use of grants/financial aid. Based on data from the development projects initiated through The Danish Clean Technology Programme we analyze how environmental innovations take place when the polluters, their suppliers and consultants are actively engaged in the development processes. The main merit of subsidy schemes like the Danish one is its direct focus on the innovation processes and the active incorporation of the network of firms surrounding the polluters. Our findings lead us to conclude that when it comes to subsidization, the role of government should be redefined. Government can act as a “matchmaker” by providing firms with informative incentives and necessary contacts for finding more efficient technological solutions to specific environmental problems. Copyright Kluwer Academic Publishers 1992 Clean technologies, innovation, regulation, subsidies, cooperation, 6 1992 2 11 Environmental & Resource Economics 533 550 http://hdl.handle.net/10.1007/BF00330282 text/html Access to full text is restricted to subscribers. Susse Georg Inge Røpke Ulrik Jørgensen
oai:RePEc:kap:enreec:v:62:y:2015:i:2:p:243-2632020-08-08RePEc:kap:enreec
article Improving Welfare Through Climate-Friendly Agriculture: The Case of the System of Rice Intensification We use rich survey data to investigate the economic impact of a climate-friendly rice farming method known as the system of rice intensification (SRI) on the welfare of rain-dependent small-holder farmers in Tanzania. SRI reduces water consumption by half, which makes it a promising farming system in the adaptation to climate change in moisture-constrained areas, and it does not require flooding of rice fields, resulting in reduced methane emissions. Endogenous switching regression results suggest that SRI indeed improves yield in rain-dependent areas, but its profitability hinges on the actual market price farmers face. SRI becomes profitable only when the rice variety sells at the same market price as that of traditional varieties, but results in loss when SRI rice sells at a lower price. We argue that the effort of promoting adoption of such types of climate-friendly agricultural practices requires complementary institutional reform and support in order to ensure their profitability to small-holder farmers. Copyright Springer Science+Business Media Dordrecht 2015 Adaptation to climate change, Endogenous switching regression, Impact evaluation, System of rice intensification, Tanzania, D1, D4, J32, O33, Q12, 2 2015 62 10 Environmental and Resource Economics 243 263 http://hdl.handle.net/10.1007/s10640-015-9962-5 text/html Access to full text is restricted to subscribers. Yonas Alem yonas.alem@economics.gu.se Håkan Eggert hakan.eggert@economics.gu.se Remidius Ruhinduka remidius.ruhinduka@economics.gu.se
oai:RePEc:kap:enreec:v:1:y:1991:i:2:p:157-1782020-08-08RePEc:kap:enreec
article (Monopolistic) resource extraction and limit pricing: The market penetration of competitively produced synfuels This paper analyzes the market penetration of a competitively produced synfuel, e.g., solar energy, in a market that is initially dominated by a resource extracting monopoly. The availability of the renewable substitute depends not only on the price/cost ratio but also on the installed capacities, which reflect historical investments. As a consequence, the resource monopoly faces a discontinuous residual demand schedule. The dynamic interactions between the resource cartel and the synfuel industry are modelled as a differential game; the (open loop) Nash equilibrium is applied to this game. It will be shown that the commodity price will exceed the production costs of the backstop and that the transition from the periods of resource dependence to the backstop technology will be gradual. Copyright Kluwer Academic Publishers 1991 Resource depletion, synfuel, differential game, 2 1991 1 6 Environmental & Resource Economics 157 178 http://hdl.handle.net/10.1007/BF00310016 text/html Access to full text is restricted to subscribers. Franz Wirl
oai:RePEc:kap:enreec:v:64:y:2016:i:4:d:10.1007_s10640-015-9894-02020-08-08RePEc:kap:enreec
article Risk and Sustainability: Assessing Fishery Management Strategies Abstract We develop a theoretical framework to assess the sustainability of fishery management strategies, when the bioeconomic dynamics are marked by uncertainty and several conflicting objectives have to be accounted for. Stochastic viability ranks management strategies according to their probability to sustain economic and ecological outcomes over time. The approach is extended to build stochastic sustainable production possibility frontiers representing the trade-offs between sustainability objectives at any risk level, given the current state of the fishery. This framework is applied to a Chilean fishery faced with El Niño uncertainty. We study the viability of effort and quota strategies when catch and biomass levels have to be sustained. We show that (1) for these sustainability objectives, whatever the level of the outcomes to be sustained, quota-based management results in a better viability probability than effort-based management, and (2) the fishery’s historical quota levels were not sustainable given the stock levels in the early 2000s. Sustainability, Risk, Fishery economics and management, Stochastic viability 4 2016 64 8 8 Environmental and Resource Economics 683 707 http://link.springer.com/10.1007/s10640-015-9894-0 text/html Abstract Vincent Martinet vincent.martinet@grignon.inra.fr INRA, UMR210 Economie Publique Julio Peña-Torres julioalept@gmail.com Peña & Sanchez Consultores Ltda Michel Lara delara@cermics.enpc.fr Université Paris-Est Hector Ramírez C. hramirez@dim.uchile.cl Universidad de Chile
oai:RePEc:kap:enreec:v:62:y:2015:i:1:p:3-172020-08-08RePEc:kap:enreec
article Optimal Recycling Policy for Used Lubricating Oil: The Case of California’s Used Oil Management Policy This paper develops a conceptual framework for the management of used oil that encompasses a tax (deposit) on manufactured oil and sector-specific subsidies (refunds) on producers who purchase recycled oil as an input in production. The framework mirrors the deposit-refund systems implemented in the used oil recycling programs of Italy, Spain, Australia and in the US State of California that favor re-refining uses over re-processing routes that lead to combustion of recycled oil as fuel. Our analysis considers environmental damage to arise jointly from improper disposal of used oil and from air pollution created by combustion of used oil. We demonstrate that the optimal policy involves a tax on manufactured oil and a subsidy of equal value on used oil collection irrespective of the ultimate end-use of used oil as re-refined lubricating oil or fuel oil. We derive policy implications to evaluate recently proposed changes to the management system for used oil in California. Copyright Springer Science+Business Media Dordrecht 2015 Recycling, Deposit-refund systems, Environmental policy, H21, Q53, 1 2015 62 9 Environmental and Resource Economics 3 17 http://hdl.handle.net/10.1007/s10640-014-9812-x text/html Access to full text is restricted to subscribers. Stephen Hamilton David Sunding sunding@berkeley.edu
oai:RePEc:kap:enreec:v:59:y:2014:i:1:p:87-1092020-08-08RePEc:kap:enreec
article Time-Related Characteristics of Tenancy Contracts and Investment in Soil Conservation Practices We present a dynamic model that shows how different types of land tenancy contracts and their time-related characteristics influence farmers’ decisions to invest in soil improvement and productive inputs. Using recent household and plot-level data from the Brong-Ahafo Region in Ghana, we analyze the impact of land tenancy arrangements, contract duration, as well as the number of times the contract has been renewed in the past on the intensity of investment in soil conservation measures such as ditches and farmyard manure and productive inputs like chemical fertilizer. The empirical findings generally confirm the predictions of the theoretical model and reveal that the intensity of investments on different plots cultivated by a given farmer varies significantly with the type of tenancy arrangement on the plot as well as the time-related characteristics of the contract. Copyright Springer Science+Business Media Dordrecht 2014 Land rights, Contract duration, Investment, Soil capital, Hold-up problem, Q15, O13, 1 2014 59 9 Environmental and Resource Economics 87 109 http://hdl.handle.net/10.1007/s10640-013-9719-y text/html Access to full text is restricted to subscribers. Awudu Abdulai aabdula@food-econ.uni-kiel.de Renan Goetz renan.goetz@udg.edu
oai:RePEc:kap:enreec:v:8:y:1996:i:4:p:461-4712020-08-08RePEc:kap:enreec
article Uncertainty over future environmental taxes Besides static efficiency properties, environmental policies should be evaluated in terms of their longer-run impacts on investment and technological change to reduce pollution and degradation of natural resources. Using a stochastic dynamic programming approach, this paper analyzes how uncertainty about a future environmental tax on a polluting input alters investment in resource conservation and how such investment affects future demand for the polluting input. The impact on investment depends crucially on price elasticities of demand and on the manner in which investment shifts and rotates the demand schedule for the polluting input in the future. The expectation of a higher tax does not necessarily create stronger incentives for investment in resource conservation. More uncertainty about future policies does encourage investment if it makes a firm more responsive to future price changes and discourages investment if it makes a firm less responsive to price changes. Copyright Kluwer Academic Publishers 1996 environmental tax, policy uncertainty, sequential investment, 4 1996 8 12 Environmental & Resource Economics 461 471 http://hdl.handle.net/10.1007/BF00357414 text/html Access to full text is restricted to subscribers. Bruce Larson George Frisvold
oai:RePEc:kap:enreec:v:27:y:2004:i:4:p:367-3892020-08-08RePEc:kap:enreec
article A Micro-Econometric Analysis of Determinants of Unsustainable Consumption in The Netherlands Recently, much attention has been given to the notion of `sustainable consumption'. Whereas environmental economics traditionally has focused environmental policy analysis on producers, this new notion broadens the perspective to include environmental policies aimed at directly influencing consumer decisions regarding buying, using, and recycling products. This could suggest policies that link not only to price incentives, but also and especially to persuasive instruments, such as education and information provision. These policies might take into account certain characteristics of households, such as lifestyle and family size. This article presents a first econometric analysis of consumption in the context of environmental sustainability. Relationships between different types of household expenditures and a range of household characteristics are assessed, based on a large micro data set of households for the Netherlands. Use is made of various demand models and econometric techniques to adequately address theoretical and technical issues involved. The article ends with a discussion of the implications of the results for environmental policy directed at stimulating sustainable consumption. Copyright Kluwer Academic Publishers 2004 environmental policy, household demand, persuasive instruments, sustainable consumption, 4 2004 27 4 Environmental and Resource Economics 367 389 http://hdl.handle.net/10.1023/B:EARE.0000018514.98541.8b text/html Access to full text is restricted to subscribers. Ada Ferrer-i-Carbonell aferrer@fee.uva.nl Jeroen van den Bergh jbergh@feweb.vu.nl
oai:RePEc:kap:enreec:v:46:y:2010:i:3:p:337-3582020-08-08RePEc:kap:enreec
article What is the Best Distribution for Pollution Abatement Efforts? Information for Optimizing the WFD Programs of Measures Abatement effort discrimination, Pollution control cost, Water Framework Directive (WFD), D62, K32, Q52, 3 2010 46 7 Environmental and Resource Economics 337 358 http://hdl.handle.net/10.1007/s10640-010-9344-y text/html Access to full text is restricted to subscribers. Francois Destandau francois.destandau@engees.unistra.fr Amir Nafi amir.nafi@engees.unistra.fr
oai:RePEc:kap:enreec:v:30:y:2005:i:1:p:73-922020-08-08RePEc:kap:enreec
article Tax Interaction Effects, Environmental Regulation, and “Rule of Thumb” Adjustments to Social Cost Preexisting distortions in factor markets complicate the estimation of the social welfare effects of regulatory interventions. The existence of these tax interaction effects (TIEs) suggests that general equilibrium (GE) approaches should be used to evaluate regulatory policies. However, formal GE analysis is not always feasible for the numerous environmental regulations proposed by federal, state, and local agencies. The question addressed in this paper is whether an empirically based ‘‘rule of thumb’’ upward adjustment factor is appropriate to properly scale social cost estimates in environmental policy. We argue that such rule of thumb adjustments are significantly less reliable than estimates based on a detailed general equilibrium analysis because of the uncertainty about both the magnitude and sign of the social cost distortion. In addition to addressing this question, the paper gives an overview of TIEs and their relevance to environmental policy. Copyright Springer 2005 general equilibrium, regulation, social costs, tax interaction effects, 1 2005 30 1 Environmental & Resource Economics 73 92 http://hdl.handle.net/10.1007/s10640-004-2379-1 text/html Access to full text is restricted to subscribers. Brian Murray bcm@rti.org Andrew Keeler Walter Thurman
oai:RePEc:kap:enreec:v:38:y:2007:i:3:p:285-3102020-08-08RePEc:kap:enreec
article Environmental policy and growth when inputs are differentiated in pollution intensity Endogenous growth, Environmental policy, Induced technological change, O41, Q28, H32, O30, 3 2007 38 11 Environmental and Resource Economics 285 310 http://hdl.handle.net/10.1007/s10640-006-9076-1 text/html Access to full text is restricted to subscribers. Francesco Ricci francesco.ricci@u-cergy.fr
oai:RePEc:kap:enreec:v:61:y:2015:i:1:p:1-172020-08-08RePEc:kap:enreec
article On the Contributions of Colin Clark to Fisheries Economics We trace the contributions of Colin Clark from his first book and articles published in the mid-1970s to date and link them to the six papers contained in this Special Issue and the larger fisheries economics literature. We highlight the impacts of Clark’s contributions on the theory, empirical, policy and management of fisheries, ranging from particular fisheries applications right through to global studies of the economics of fishing. Our conclusion is that Colin Clark’s impact upon fisheries economics has been revolutionary and predict that 100 years from now, his classic contribution, Mathematical Bioeconomics will still be studied with care by economists. Copyright Springer Science+Business Media Dordrecht 2015 Bioeconomics, Capital-theoretic model, Dynamic fishery models, Fisheries economics, Optimal resource investment, Renewable resource management, 1 2015 61 5 Environmental and Resource Economics 1 17 http://hdl.handle.net/10.1007/s10640-015-9910-4 text/html Access to full text is restricted to subscribers. Gordon Munro U. Sumaila r.sumaila@fisheries.ubc.ca
oai:RePEc:kap:enreec:v:15:y:2000:i:3:p:199-2162020-08-08RePEc:kap:enreec
article An Iterative Process for International Negotiations on Acid Rain in Northern Europe Using a General Convex Formulation This paper proposes a game theoretical approach of internationalnegotiations on transboundary pollution. This approach is distinguished bya discrete time formulation and by a suitable formulation of the localinformation assumption on cost and damage functions: at each stage of thenegotiation, the parties assign the best possible cooperative state, giventhe available information, as an objective for the next stage. It is shownthat the resulting sequences of states converges from a non-cooperativesituation to an international optimum in a finite number of stages.Furthermore, a financial transfer structure is also presented that makesthe desired sequence of states individually rational and stategically stable.The concepts are applied in a numerical simulation of the SO 2 transboundary pollution problem related to acid rain in Northern Europe. Copyright Kluwer Academic Publishers 2000 acid rain game, cooperative game theory, financial transfers, international negotiations, 3 2000 15 3 Environmental and Resource Economics 199 216 http://hdl.handle.net/10.1023/A:1008301613492 text/html Access to full text is restricted to subscribers. M. Germain germain@core.ucl.ac.be Ph.L. Toint
oai:RePEc:kap:enreec:v:25:y:2003:i:4:p:395-4162020-08-08RePEc:kap:enreec
article Global Warming, Endogenous Risk, and Irreversibility This paper develops two-period analytical and numerical models to study the question: given a stock of greenhouse gases that poses a risk of future damages of unknown magnitude, and the possibility of learning about damages, how do sunk abatement capital and a nondegradable stock of greenhouse gases affect optimal first-period investment? We show that both affect investment, the former negatively and the latter positively. Additionally, endogenous risk – the risk of damages dependent on the stock of gases – results in an increase in optimal investment for any level of capital ‘sunkness’ or greenhouse gas degradability. Quantitatively, the effect of sunk capital is stronger than the effect of greenhouse gas irreversibility or that of endogenous risk. Copyright Kluwer Academic Publishers 2003 4 2003 25 8 Environmental and Resource Economics 395 416 http://hdl.handle.net/10.1023/A:1025056530035 text/html Access to full text is restricted to subscribers. Anthony Fisher Urvashi Narain narain@rff.org
oai:RePEc:kap:enreec:v:52:y:2012:i:1:p:23-482020-08-08RePEc:kap:enreec
article Heterogeneity in Values of Morbidity Risks from Drinking Water Drinking water, Gastrointestinal illness, Morbidity risk, Stated preference survey, Willingness to pay, Starting point bias, 1 2012 52 5 Environmental and Resource Economics 23 48 http://hdl.handle.net/10.1007/s10640-011-9517-3 text/html Access to full text is restricted to subscribers. W. Viscusi kip.viscusi@vanderbilt.edu http://www.law.vanderbilt.edu Joel Huber Jason Bell
oai:RePEc:kap:enreec:v:62:y:2015:i:1:p:163-1882020-08-08RePEc:kap:enreec
article Renewable Energy Policies and Private Sector Investment: Evidence from Financial Microdata This paper analyses the effect of government policies and other determinants on private finance investment in renewable energy. A unique dataset of financial transactions for renewable energy projects is constructed using the Bloomberg New Energy Finance database. The dataset covers 87 countries, six renewable energy sectors (wind, solar, biomass, small hydropower, marine and geothermal) and the 2000–2011 time-span. In a first set of models undertaken at the level of the financial deal we find that, in contrast to quota-based schemes, price-based support schemes are positively correlated with private finance contributions. This result holds for complementary analyses undertaken at the level of the project. However, for those projects in which public finance complements private finance (co-financed projects) neither quota-based measures nor price-based support schemes have a significant effect on private finance flows. Copyright Springer Science+Business Media Dordrecht 2015 Renewable energy, Finance, Investment, Policy instrument choice, Technology deployment, Q42, Q48, Q54, Q55, Q58, G3, H23, L94, O3, 1 2015 62 9 Environmental and Resource Economics 163 188 http://hdl.handle.net/10.1007/s10640-014-9820-x text/html Access to full text is restricted to subscribers. Miguel Cárdenas Rodríguez miguel.cardenasrodriguez@oecd.org Ivan Haščič ivan.hascic@oecd.org Nick Johnstone nick.johnstone@oecd.org Jérôme Silva jerome.silva@oecd.org Antoine Ferey fereyantoine@gmail.com
oai:RePEc:kap:enreec:v:16:y:2000:i:3:p:281-3022020-08-08RePEc:kap:enreec
article Are The Costs of Proposed Environmental Regulations Overestimated? Evidence from the CFC Phaseout Benefit-cost and cost-effectiveness analysis are often advocated fordecision making about environmental, health, and safety regulations, butthere has been little research evaluating the accuracy of prospectiveestimates of regulatory costs and benefits. Prospective estimates of themarginal cost of limiting chlorofluorocarbon (CFC) consumption in theUnited States, published shortly before and after the September 1987adoption of the Montreal Protocol, are compared with retrospectiveestimates based on realized market prices. Estimates published beforeinternational regulations were adopted (in May 1986) substantiallyoverestimate the marginal costs of limiting CFC-11 and CFC-12consumption but modestly underestimate the costs of limiting CFC-113consumption. In contrast, estimates published shortly after adoption of theProtocol (in August 1988) appear to underestimate the marginal cost oflimiting CFC consumption. Copyright Kluwer Academic Publishers 2000 cost estimates, benefit-cost analysis, chlorofluorocarbons, 3 2000 16 7 Environmental and Resource Economics 281 302 http://hdl.handle.net/10.1023/A:1008352022368 text/html Access to full text is restricted to subscribers. James Hammitt
oai:RePEc:kap:enreec:v:43:y:2009:i:3:p:413-4322020-08-08RePEc:kap:enreec
article Strategic Behavior, Private Information, and Decentralization in the European Union Emissions Trading System Decentralization, Emissions trading, European Union, Pollution abatement, Private information, 3 2009 43 7 Environmental and Resource Economics 413 432 http://hdl.handle.net/10.1007/s10640-009-9274-8 text/html Access to full text is restricted to subscribers. David Malueg david.malueg@ucr.edu Andrew Yates ayates2@richmond.edu
oai:RePEc:kap:enreec:v:11:y:1998:i:3:p:429-4422020-08-08RePEc:kap:enreec
article The Importance of Ethics in Environmental Economics with a Focus on Existence Values The importance of ethics and fundamental value judgments in environmental economics is high-lighted by discussing the controversial concept of existence values. The social value depends crucially on the social objective, which is not necessarily self-evident, e.g., since some individuals tend to value nature intrinsically. It is shown that the motives behind willingness to pay figures matter for the social value, and the conventional view that people respond to CV questions solely in order to maximize their own utility or well-being is questioned. The importance of being explicit about value judgments is emphasized, and it is argued that environmental economics should consider non-conventional assumptions which take the social context into account to a larger degree. Copyright Kluwer Academic Publishers 1998 altruism, contingent valuation, ethics, existence values, motives, simplifying assumptions, welfare theory, 3 1998 11 4 Environmental and Resource Economics 429 442 http://hdl.handle.net/10.1023/A:1008239427421 text/html Access to full text is restricted to subscribers. Olof Johansson-Stenman olof.johansson@economics.gu.se
oai:RePEc:kap:enreec:v:48:y:2011:i:4:p:561-5672020-08-08RePEc:kap:enreec
article A Note on Clean Technology Adoption and its Influence on Tradeable Emission Permits Prices Environmental innovation, Tradable emission permits, Cournot interaction, D43, L13, Q55, 4 2011 48 4 Environmental and Resource Economics 561 567 http://hdl.handle.net/10.1007/s10640-010-9403-4 text/html Access to full text is restricted to subscribers. María-Eugenia Sanin maria-eugenia.sanin@polytechnique.edu Skerdilajda Zanaj
oai:RePEc:kap:enreec:v:65:y:2016:i:1:d:10.1007_s10640-015-9911-32020-08-08RePEc:kap:enreec
article Consumer Behaviour with Environmental and Social Externalities: Implications for Analysis and Policy Abstract In this paper we summarise some of our recent work on consumer behaviour, drawing on recent developments in behavioural economics, particularly linked to sociology as much as psychology, in which consumers are embedded in a social context, so their behaviour is shaped by their interactions with other consumers. For the purpose of this paper we also allow consumption to cause environmental damage. Analysing the social context of consumption naturally lends itself to the use of game theoretic tools. We shall be concerned with two ways in which social interactions affect consumer preferences and behaviour: socially-embedded preferences, where the behaviour of other consumers affect an individual’s preferences and hence consumption (we consider two examples: conspicuous consumption and consumption norms) and socially-directed preferences where people display altruistic behaviour. Our aim is to show that building links between sociological and behavioural economic approaches to the study of consumer behaviour can lead to significant and surprising implications for conventional economic analysis and policy prescriptions, especially with respect to environmental policy. Consumer behaviour, Social context, Environmental policy, Game theory, Competitive consumption, Consumption norms, Altruism, Moral behaviour, Kantian calculus 1 2016 65 9 10 Environmental and Resource Economics 191 226 D1 D6 H2 Q5 Z1 http://link.springer.com/10.1007/s10640-015-9911-3 text/html Abstract Partha Dasgupta University of Cambridge University of Manchester Dale Southerton University of Manchester Alistair Ulph alistair.ulph@manchester.ac.uk University of Manchester David Ulph University of St Andrews
oai:RePEc:kap:enreec:v:12:y:1998:i:2:p:249-2542020-08-08RePEc:kap:enreec
article Why Give up Money for the Baltic Sea? – Motives for People's Willingness (or Reluctance) to Pay A contingent valuation survey about a reduction of the eutrophication of the Baltic Sea provided data about respondents' motives for their answers to the willingness to pay question. A categorization of the motives allowed an identification of protesters against the valuation scenario. The categorization also illustrated that a teleological ethical perspective is not shared by all respondents and that some respondents perceive human indirect use of ecosystems. Copyright Kluwer Academic Publishers 1998 contingent valuation, eutrophication, protest answers, willingness to pay motives, 2 1998 12 9 Environmental and Resource Economics 249 254 http://hdl.handle.net/10.1023/A:1008261509412 text/html Access to full text is restricted to subscribers. Tore Söderqvist tore@beijer.kva.se
oai:RePEc:kap:enreec:v:8:y:1996:i:1:p:15-382020-08-08RePEc:kap:enreec
article Trade policy and ecology Trade sanctions on product exports are often used as measures for conservation of stocks of living resources. Two opposing approaches are investigated. The harvest approach argues that sanctions reduce the harvest, and thus protects the stock. It is shown that this does not consider the long run effects nor the effects of sanctions on the management system. The investment approach argues that increased price protects the stock, making the species a profitable investment. It is shown that this approach does not consider the asset effects of price changes, and that the sanctions usually increase the stock in an one species analysis. If the wildlife competes for land the conclusions may be different, but still sanctions usually works. If the manager has a joint management of several species, the stock effects of sanctions are ambiguous, depending on both the species interaction, and the profitability of the harvesting from each of them. In this case it is not possible to use intuitive reasoning, sanctions give distortions to all stocks simultaneously. The threat of extinction depends crucially on the unit cost in harvesting of depleted stocks. The paper concludes that trade policy is a too general measure for the management of living resources, and may implicate important economic distortions to the ecological system. Copyright Kluwer Academic Publishers 1996 trade policy, economic sanctions, renewable resources, wildlife conservation, 1 1996 8 7 Environmental & Resource Economics 15 38 http://hdl.handle.net/10.1007/BF00340651 text/html Access to full text is restricted to subscribers. Carl-Erik Schulz
oai:RePEc:kap:enreec:v:36:y:2007:i:4:p:499-5212020-08-08RePEc:kap:enreec
article Public Preferences and Private Choices: Effect of Altruism and Free Riding on Demand for Environmentally Certified Pork Sales of private goods with affiliated public good attributes have markedly risen in recent years. This fact is difficult to explain within the paradigm of purely self-interested behavior. This paper investigates factors influencing consumer demand for pork products with certifications related to the environment, animal welfare, and antibiotics. Using psychometric scaling techniques, we measure individuals’ degree of altruism and propensity toward free riding. Results of a random parameter logit model applied to choice data obtained from a nationwide survey in the United States indicates that more altruistic individuals are willing to pay more for pork products with public good attributes than less altruistic individuals and free riders. These results indicate that private purchases of goods with public-good attributes are not simply a result of individuals’ perceptions of the ability to mitigate private risks such as food safety, but that individuals are making private choices to affect public outcomes. Results have implications for policy makers weighing the relative costs and benefits of food labeling policies versus bans related to certain livestock production practices. Copyright Springer Science+Business Media, Inc. 2007 4 2007 36 4 Environmental and Resource Economics 499 521 http://hdl.handle.net/10.1007/s10640-006-9039-6 text/html Access to full text is restricted to subscribers. Jayson Lusk jayson.lusk@okstate.edu Tomas Nilsson Ken Foster
oai:RePEc:kap:enreec:v:31:y:2005:i:3:p:325-3482020-08-08RePEc:kap:enreec
article An Empirical Test of Environmental Kuznets Curve for Water Pollution The Environmental Kuznets Curve (EKC) on water pollution was investigated with both semiparametric and parametric models using watershed level data for the state of Louisiana, USA. The parametric model indicated the turning points within the range $10241–$12993, $6636–$13877, and $6467–$12758 for nitrogen (N), phosphorus (P), and dissolved oxygen (DO), respectively. However, only the parameters associated with N EKC were found to be significant. Model specification tests rejected parametric models in favor of semiparametric specification for P but not for N and DO. Copyright Springer 2005 environmental Kuznets curve, fixed and random effects, parametric and semiparametric models, water pollution, watershed, turning points, C14, C33, O13, Q2, Q25, 3 2005 31 07 Environmental & Resource Economics 325 348 http://hdl.handle.net/10.1007/s10640-005-1544-5 text/html Access to full text is restricted to subscribers. Krishna Paudel kpaudel@agcenter.lsu.edu Hector Zapata Dwi Susanto
oai:RePEc:kap:enreec:v:4:y:1994:i:5:p:479-4942020-08-08RePEc:kap:enreec
article Environmental enforcement when ‘inspectability’ is endogenous: A model with overshooting properties If a firm can influence its monitorability vis-à-vis an environmental regulator, it is shown that increasing the thoroughness of inspections induces the firm to substitute towards more transparent technologies, whilst increasing their frequency may cause substitution the other way. Perversely, when the effect of such substitution is taken into account, an increase in the frequency of inspections (or, equally, the stringency of penalties) may worsen the firm's environmental performance. The agency should favour more thorough inspections than existing theory suggests, particularly in sectors where the scope for such substitution is great. Moreover, when monitorability adjusts only sluggishly to policy shocks (because it is an embodied characteristic of capital, for example) the environmental impacts of increased frequency and increased thoroughness well over- and under-shoot their respective long-run impacts. In assessing regulatory reform, therefore, it is important to leave sufficient time for the class of adjustments identified to occur. The possibility of overshooting can be used as an alternative to existing ‘regulatory capture’ theories to explain why the efficacy of some classes of regulatory reform may fade through time. Copyright Kluwer Academic Publishers 1994 Environment, regulatory enforcement, probability of compliance, 5 1994 4 10 Environmental & Resource Economics 479 494 http://hdl.handle.net/10.1007/BF00691924 text/html Access to full text is restricted to subscribers. Anthony Heyes
oai:RePEc:kap:enreec:v:65:y:2016:i:2:d:10.1007_s10640-015-9904-22020-08-08RePEc:kap:enreec
article Spatial Harvest Regimes for a Sedentary Fishery Abstract This paper investigates the role of harvest sanctuaries and reserves in the management of a sedentary fishery. An optimal control bioeconomic model is developed and optimized for native oysters in the Chesapeake Bay, US, that incorporates two positive externalities generated by oyster stocks: nutrient removal and provision of habitat for other benthic species. The model incorporates four management regimes that currently exist in the Bay: public grounds that are continuously harvested, aquaculture on leased grounds, sanctuaries that are never harvested, and reserves that are periodically pulse harvested. We find that if harvest effort in public grounds can be controlled, then that management regime unambiguously provides the highest social welfare. However, if harvest effort in public grounds cannot be controlled, then reserves provide the highest social welfare. Sanctuaries are part of the optimal mix of regimes only when harvest effort on public grounds cannot be controlled and a pulsed harvest is not feasible. Bioeconomics, Chesapeake Bay, Harvest regimes, Optimal control, Oysters, Spillover effects 2 2016 65 10 3 Environmental and Resource Economics 357 387 http://link.springer.com/10.1007/s10640-015-9904-2 text/html Abstract Nikolaos Mykoniatis mykonian@tamug.edu Texas A&M University Richard Ready Montana State University
oai:RePEc:kap:enreec:v:64:y:2016:i:2:d:10.1007_s10640-014-9871-z2020-08-08RePEc:kap:enreec
article Compelling Evidence of an Environmental Kuznets Curve in the United Kingdom Abstract The objective of this paper is to investigate the relationship between per capita emissions ( $$\hbox {CO}_{2}$$ CO 2 and $$\hbox {SO}_{2}$$ SO 2 ) and economic growth (per capita GDP) in the UK using a long span of data. This paper examines the existence of a non-linear relationship between emissions and economic growth using methods that do not restrict the relationship to be any particular shape. The methodology employs instrumental variables in the place of per capita GDP to deal with potential concerns about errors in variables and endogeneity. The empirical results provide strong support for the environmental Kuznets curve, with estimated turning points in 1966 and 1967 for $$\hbox {CO}_{2}$$ CO 2 and $$\hbox {SO}_{2}$$ SO 2 , respectively. These turning points correspond roughly with the introduction of the Clean Air Act in the UK as well as the reduction in the use of coal as an energy source; and together, they provide a snapshot of the forces driving the turning points. The paper continues by further investigating the temporal behavior of the inverted U-shaped relationship. The findings indicate that if emissions and per capita GDP deviate from their long-run relationship, emissions do the “heavy lifting” to restore the system to equilibrium. This result is intuitively pleasing because mitigation is directly affected by legislation as opposed to declining economic growth. Environmental Kuznets curve, $$\hbox {CO}_{2} \hbox { and } \hbox {SO}_{2}$$ CO 2 and SO 2 emissions, Nonlinear cointegration, Threshold cointegration, Asymmetric adjustment 2 2016 64 6 7 Environmental and Resource Economics 301 315 C2 Q4 http://link.springer.com/10.1007/s10640-014-9871-z text/html Abstract Peter Sephton Psephton@business.queensu.ca Queen’s University Janelle Mann Janelle.Mann@ad.umanitoba.ca University of Manitoba
oai:RePEc:kap:enreec:v:40:y:2008:i:4:p:529-5502020-08-08RePEc:kap:enreec
article Environmental versus Human-Induced Scarcity in the Commons: Do They Trigger the Same Response? Common property resource, Concern for resource preservation, Early extinction, Endogenous and exogenous scarcity, Experimental design, C91, C92, H41, D64, 4 2008 40 8 Environmental and Resource Economics 529 550 http://hdl.handle.net/10.1007/s10640-007-9168-6 text/html Access to full text is restricted to subscribers. Nuria Osés-Eraso nuria.oses@unavarra.es Frederic Udina udina@upf.es Montserrat Viladrich-Grau montse.viladrich@aegern.udl.es
oai:RePEc:kap:enreec:v:3:y:1993:i:2:p:107-1272020-08-08RePEc:kap:enreec
article The geneva hydrocarbon protocol: Economic insights from a belgian perspective This paper extends the methodology for the economic analysis of tropospheric ozone regulation reported in Repetto (1987). Firstly, the acid rain objective is explicitly incorporated by assigning an additional benefit to the acidifying precursors of ozone. Secondly, we introduce the transboundary dimension which is of particular importance to Europe. The methodology is applied to the evaluation of the costs and benefits of the Geneva Protocol on hydrocarbons for Belgium. Copyright Kluwer Academic Publishers 1993 tropospheric ozone, cost-effectiveness, transboundary pollution, non-convexities, 2 1993 3 4 Environmental & Resource Economics 107 127 http://hdl.handle.net/10.1007/BF00338780 text/html Access to full text is restricted to subscribers. Inge Mayeres Stef Proost David Miltz
oai:RePEc:kap:enreec:v:63:y:2016:i:2:d:10.1007_s10640-015-9900-62020-08-08RePEc:kap:enreec
article Aggregative Environmental Games Abstract This paper expounds a new approach to the analysis of public good and open access resource models, developed in a series of recent papers by Cornes and Hartley, and considers the applicability of this approach to modeling current environmental problems. I look at a number of possible extensions of the framework, survey recent applications to environmental problems, and suggest further possible lines of enquiry. Aggregative games, Public goods, Joint production, Weakest-link, Open access resources 2 2016 63 2 7 Environmental and Resource Economics 339 365 http://link.springer.com/10.1007/s10640-015-9900-6 text/html Abstract Richard Cornes Dirk.Ruebbelke@vwl.tu-freiberg.de richard.cornes@anu.edu.au Australian National University
oai:RePEc:kap:enreec:v:40:y:2008:i:3:p:369-3822020-08-08RePEc:kap:enreec
article Environmental Taxation and Vertical Cournot Oligopolies: How Eco-industries Matter Eco-industry, End-of-pipe pollution abatement, Environmental taxation, Vertical Cournot oligopolies, D43, H23, Q58, 3 2008 40 7 Environmental and Resource Economics 369 382 http://hdl.handle.net/10.1007/s10640-007-9158-8 text/html Access to full text is restricted to subscribers. Joan Canton jcanton@uottawa.ca Antoine Soubeyran Hubert Stahn
oai:RePEc:kap:enreec:v:4:y:1994:i:4:p:353-3812020-08-08RePEc:kap:enreec
article Renewable resource market obeying difference equations: Stable points, stable cycles, and Chaos (1991) In this paper, the basic principles of the Chaos Theory are applied to dynamic systems involving renewable resource and harvest. The results of simulations are presented regarding harvested resource stock time path. It is shown that stationary steady-state is only one of many different possible outcomes of bioeconomic equilibrium. The varying impacts that different management policies have on an unstable dynamic system are also studied. It is shown that in unstable resource systems, the effects of some policy measures will be very different from the ones obtained through traditional resource analysis. It also shows that policies which induce a stabilizing effect in stock time series will generally provide greater welfare gains. The results are illustrated by two market examples. Copyright Kluwer Academic Publishers 1994 Bioeconomic dynamics, regulation, 4 1994 4 8 Environmental & Resource Economics 353 381 http://hdl.handle.net/10.1007/BF00692230 text/html Access to full text is restricted to subscribers. Clara Duarte
oai:RePEc:kap:enreec:v:50:y:2011:i:3:p:347-3642020-08-08RePEc:kap:enreec
article Emission Permit Trading Between Imperfectly Competitive Product Markets Emission permit market, Demand uncertainty, Imperfect competition, Market integration, D82, D43, L13, 3 2011 50 11 Environmental and Resource Economics 347 364 http://hdl.handle.net/10.1007/s10640-011-9475-9 text/html Access to full text is restricted to subscribers. Guy Meunier guy.meunier@polytechnique.edu
oai:RePEc:kap:enreec:v:8:y:1996:i:2:p:141-1552020-08-08RePEc:kap:enreec
article Recycling of carbon/energy taxes and the labor market This paper provides a quantitative assessmet of a cost shift from labor to energy by means of a carbon/energy tax. The analysis utilizes a general equilibrium model for the European Community, placing the emphasis on the modeling of labor supply. The paper highlights the importance of the feedback from an induced increase in labor demand to wage formation. It shows that the goals of CO 2 reduction and improved employment are complementary, provided the reduction in labor costs financed by the carbon/energy tax is not offset by increased wage claims. Under this condition, reduced CO 2 is consistent with an increase in GDP. Copyright Kluwer Academic Publishers 1996 general equilibrium model, carbon tax, labor market, 2 1996 8 9 Environmental & Resource Economics 141 155 http://hdl.handle.net/10.1007/BF00357361 text/html Access to full text is restricted to subscribers. Heinz Welsch
oai:RePEc:kap:enreec:v:50:y:2011:i:4:p:605-6272020-08-08RePEc:kap:enreec
article Stepping Stones for Biological Invasion: A Bioeconomic Model of Transferable Risk Bioeconomic, Invasive species, Risk, Transferable risk, Welfare, 4 2011 50 12 Environmental and Resource Economics 605 627 http://hdl.handle.net/10.1007/s10640-011-9485-7 text/html Access to full text is restricted to subscribers. Travis Warziniack warziniack@eco.uni-heidelberg.de David Finnoff finnoff@uwyo.edu Jonathan Bossenbroek jonathan.bossenbroek@utoledo.edu Jason Shogren jramses@uwyo.edu David Lodge dlodge@nd.edu
oai:RePEc:kap:enreec:v:62:y:2015:i:4:p:907-9232020-08-08RePEc:kap:enreec
article Efficient Waste Management Policies and Strategic Behavior with Open Borders During the last decade waste management has been characterized by two main trends: the growth of international trade of waste materials and the introduction of extended producer responsibility (EPR) as a policy instrument. In this paper a two-country stylized model with imperfect competition in the recycling market is used to address two research questions. First, how do EPR recycling targets interact with other policy instruments such as taxes on recycling residues and excise duties? Second, how does strategic behavior of national policy makers influences the use of policy instruments? The model demonstrates that a combination of EPR with other instruments is needed to achieve the first-best outcome. When governments do not coordinate policies across borders, strategic behavior may lead to a ‘race to the bottom’ for taxes on recycling residues. Conversely, strategic behavior may lead to a counter-intuitive ‘race to the top’ for excise duties and EPR recycling targets. It is shown that these instruments are not only used to stimulate waste prevention but also to extract rents from foreign recyclers. Copyright Springer Science+Business Media Dordrecht 2015 Economic instruments, Extended producer responsibility , Strategic behavior, Trade, Waste, Recycling, 4 2015 62 12 Environmental and Resource Economics 907 923 http://hdl.handle.net/10.1007/s10640-014-9851-3 text/html Access to full text is restricted to subscribers. M. Dubois maarten.dubois@kuleuven.be J. Eyckmans
oai:RePEc:kap:enreec:v:61:y:2015:i:3:p:319-3432020-08-08RePEc:kap:enreec
article Non- $$\hbox {CO}_2$$ CO 2 Generating Energy Shares in the World: Cross-Country Differences and Polarization The aim of this paper is to examine the spatial distribution of non- $$\hbox {CO}_2$$ CO 2 generating energy sources in the world for the period 1990–2009, paying special attention to the evolution of cross-country disparities. To this end, after carrying out a classical convergence analysis, a more thorough investigation of the entire distribution is presented by examining its external shape, the intra-distribution dynamics and the long-run equilibrium distribution. This analysis reveals the existence of a weak, rather insignificant, convergence process and that large cross-country differences are likely to persist in the long-run. Next, as polarization indicators are a proper way of appraising potential conflict in international environmental negotiations, we test whether, or not, the distribution dynamics concurs with the presence of polarization. Our results indicate that two poles can be clearly differentiated, one with high and other with low non- $$\hbox {CO}_2$$ CO 2 generating energy shares. In view of these findings, and to ensure a fair transition to a sustainable energy system, the paper calls for the development of an ambitious clean energy agenda, especially in countries with low non- $$\hbox {CO}_2$$ CO 2 generating energy shares. Copyright Springer Science+Business Media Dordrecht 2015 Non- $$\hbox {CO}_2$$ CO 2 generating energy share, Distribution dynamics approach, Polarization, 3 2015 61 7 Environmental and Resource Economics 319 343 http://hdl.handle.net/10.1007/s10640-014-9794-8 text/html Access to full text is restricted to subscribers. Adolfo Maza mazaaj@unican.es José Villaverde María Hierro
oai:RePEc:kap:enreec:v:14:y:1999:i:3:p:413-4302020-08-08RePEc:kap:enreec
article Climate Policy with Multiple Sources and Sinks of Greenhouse Gases This paper studies how inclusion of many sources, sinks and reservoirs -- a comprehensive approach -- affects climate policy, compared with a control merely of CO 2 . Two questions of particular importance arise in such an analysis. One is how to aggregate the emissions of different climate gases, and the other is how to include all relevant measures in the analysis. To aggregate gases properly, an intertemporal analysis should be carried out. To assure that all relevant measures are included, we suggest that certain measures to reduce emissions of greenhouse gases are specified explicitly and evaluated together with indirect measures, such as carbon charges. A numerical analysis based on an optimal control model indicates that direct measures may play an important role in the design of climate policy, especially for the control of the emissions of greenhouse gases other than CO 2 . Similar to other studies of the time-path for abatement efforts, the bulk of abatement should be taken by the end of the planning period. This result is significantly strengthened if gases with short life-times in the atmosphere, such as methane, are subject to control. Copyright Kluwer Academic Publishers 1999 climate measures, global warming, optimal control, 3 1999 14 10 Environmental and Resource Economics 413 430 http://hdl.handle.net/10.1023/A:1008324628810 text/html Access to full text is restricted to subscribers. H. Aaheim asbjorn.aaheim@cicero.uio.no
oai:RePEc:kap:enreec:v:12:y:1998:i:3:p:255-2732020-08-08RePEc:kap:enreec
article Sustainable Forestry: Timber Bequests, Future Generations and Optimal Tax Policy This paper analyzes harvesting and timber bequest behavior in a two-period overlapping generations model where the government uses site productivity, yield and inheritance taxation. The ceteris paribus effects of forest and inheritance taxes are derived first, then the paper discusses the optimal design of forest and inheritance taxes by assuming that intergenerational externalities are either absent or operative. In the absence of intergenerational externalities, it is optimal to use only the site productivity tax, and not to introduce yield and inheritance taxes at all. In the presence of intergenerational externalities the situation changes. The paper demonstrates that the externality can be internalized by introducing either a yield tax or an inheritance subsidy, or both. If the government is able to use both at the same time, it is desirable to use the yield tax to 'punish' excessive harvesting and an inheritance subsidy to 'bribe' to give bequests. Copyright Kluwer Academic Publishers 1998 forest taxation, sustainable development, timber bequest, 3 1998 12 10 Environmental and Resource Economics 255 273 http://hdl.handle.net/10.1023/A:1008243506401 text/html Access to full text is restricted to subscribers. Markku Ollikainen econ@helsinki.fi
oai:RePEc:kap:enreec:v:24:y:2003:i:1:p:1-262020-08-08RePEc:kap:enreec
article Protecting Forests Through Farming. A Dynamic Model of Nontimber Forest Extraction Forest resource extraction by local communities has been cited as a major impediment to the efficient management of protected forests. This paper develops a two sector dynamic model for farming and forest resource extraction by communities living in the forest periphery. The model assumes that land under forestry is constant and households allocate their time to farming and forestry. Comparative dynamic results suggest that higher prices for agriculture output, lower input prices, better knowledge of farming techniques and a lower discount rate may result in a higher equilibrium stock of forest resources. Tobit analysis with primary data collected from the Sinharaja forest in Sri Lanka provides supportive empirical evidence. Copyright Kluwer Academic Publishers 2003 comparative dynamics, forest protection, nontimber forest products, Sri Lanka, tobit analysis, 1 2003 24 1 Environmental and Resource Economics 1 26 http://hdl.handle.net/10.1023/A:1022807129996 text/html Access to full text is restricted to subscribers. Herath Gunatileke Ujjayant Chakravorty unc@emory.edu
oai:RePEc:kap:enreec:v:52:y:2012:i:2:p:235-2482020-08-08RePEc:kap:enreec
article An Optimal Ad Valorem Tax/Subsidy with an Output-Based Refunded Emission Payment for Permits Auction in an Oligopoly Market Ad valorem tax, Output-based refunded emission payment, Uniform price auction, Underpricing, 2 2012 52 6 Environmental and Resource Economics 235 248 http://hdl.handle.net/10.1007/s10640-011-9526-2 text/html Access to full text is restricted to subscribers. Yuanguang Yu Yu.yuanguang@hotmail.com
oai:RePEc:kap:enreec:v:41:y:2008:i:4:p:479-4972020-08-08RePEc:kap:enreec
article Economic Benefits of Management Reform in the Gulf of Mexico Grouper Fishery: A Semi-parametric Analysis Individual fishing quotas, Semi-parametric efficiency analysis, Fleet restructuring, Q2, D2, 4 2008 41 12 Environmental and Resource Economics 479 497 http://hdl.handle.net/10.1007/s10640-008-9203-2 text/html Access to full text is restricted to subscribers. Quinn Weninger weninger@iastate.edu
oai:RePEc:kap:enreec:v:18:y:2001:i:1:p:87-1002020-08-08RePEc:kap:enreec
article Environmental Regulations and Managerial Myopia It has recently been claimed that, contrary totraditional neoclassical theory, suitably chosenenvironmental regulation is often beneficial for theregulated firms because it induces cost-reducinginnovations. I analyze the extent to which thisposition is compatible with microeconomic analysis. Itturns out that even in a framework in whichorganizational inefficiencies might lead tounderinvestment, environmental policy can onlyincrease firm profits if several very specificconditions are met. These conditions concern the typeof policy, the extent of inefficiencies, the costs ofpotential innovation projects and their effect onproductivity and abatement costs. Copyright Kluwer Academic Publishers 2001 environmental regulation, innovation offsets, internal inefficiencies, managerial myopia, 1 2001 18 1 Environmental and Resource Economics 87 100 http://hdl.handle.net/10.1023/A:1011113106055 text/html Access to full text is restricted to subscribers. Armin Schmutzler arminsch@sozoec-unizh.ch
oai:RePEc:kap:enreec:v:13:y:1999:i:4:p:473-4912020-08-08RePEc:kap:enreec
article Household Waste Management in a Swedish Municipality: Determinants of Waste Disposal, Recycling and Composting This paper analyzes waste disposal, recycling and composting in a municipality in southwest Sweden. In 1994, Varberg introduced a weight-based billing system for household waste charging 1 kr/kg of waste and at the same time recycling centers were set up and a ‘green shopping’ campaign was launched. This led to a significant reduction in waste collected and increased recycling. This study had access to actual measured data on waste disposal at the household level for a residential area called Tvååker, in addition to survey data for the same households. This makes it possible to carry out a more reliable and more detailed analysis than has been previously possible, particularly with respect to attitudinal variables. The most important determinants of each individual household's waste were composting of kitchen waste, living area, age and attitudes concerning the difficulty of recycling various materials. Separate sections look at composting behaviour, at willingness to pay for sound waste management and for the sake of comparison three other municipalities are also studied. The main finding is that economic incentives, although important, are not the only driving force behind the observed reduction in municipal waste: Given the proper infrastructure that facilitates recycling, people are willing to invest more time than can be motivated purely by savings on their waste management bill. Copyright Kluwer Academic Publishers 1999 waste management, recycling, incentives, 4 1999 13 6 Environmental and Resource Economics 473 491 http://hdl.handle.net/10.1023/A:1008214417099 text/html Access to full text is restricted to subscribers. Heleen Bartelings Thomas Sterner
oai:RePEc:kap:enreec:v:45:y:2010:i:2:p:157-1822020-08-08RePEc:kap:enreec
article The Efficiency of Direct Public Involvement in Environmental Policymaking: An Experimental Test Environment, Decision-making, Resource allocation, Collaboration, Experiment, C90, D74, H44, Q58, 2 2010 45 2 Environmental and Resource Economics 157 182 http://hdl.handle.net/10.1007/s10640-009-9310-8 text/html Access to full text is restricted to subscribers. Christopher Bruce cjbruce@ucalgary.ca Jeremy Clark jeremy.clark@canterbury.ac.nz
oai:RePEc:kap:enreec:v:8:y:1996:i:1:p:63-742020-08-08RePEc:kap:enreec
article Long-term industrial equilibrium in an ITQ managed fishery This paper discusses long-term equilibrium in a fishery managed by individual transferable quotas. Rising prices or falling capital costs become capitalized in a higher value of quotas, implying higher capital costs for holding quotas. This may in fact reduce the size of each firm and lead to more firms existing in long-term equilibrium. Resource rent taxation by letting firms lose a certain share of their quota holdings each year is discussed and shown to be neutral. Copyright Kluwer Academic Publishers 1996 fisheries economics, ITQ's, neutral taxes, 1 1996 8 7 Environmental & Resource Economics 63 74 http://hdl.handle.net/10.1007/BF00340653 text/html Access to full text is restricted to subscribers. Rögnvaldur Hannesson
oai:RePEc:kap:enreec:v:38:y:2007:i:3:p:311-3302020-08-08RePEc:kap:enreec
article Water markets design and evidence from experimental economics Experimental economics, Market design, Spanish water policy, Water markets, Water resources, D44, C92, Q25, 3 2007 38 11 Environmental and Resource Economics 311 330 http://hdl.handle.net/10.1007/s10640-006-9077-0 text/html Access to full text is restricted to subscribers. Alberto Garrido alberto.garrido@upm.es
oai:RePEc:kap:enreec:v:53:y:2012:i:3:p:309-3212020-08-08RePEc:kap:enreec
article The Ramsey Discounting Formula for a Hidden-State Stochastic Growth Process The long term discount rate is critically dependent upon projections of future growth rates that are fuzzier in proportion to the remoteness of the time horizon. This paper models such increasing fuzziness as an evolving hidden-state stochastic process. The underlying trend growth rate is an unobservable random walk hidden by noisy transitory shocks and recoverable only as a probability distribution via Bayesian updating. A simple expression is derived for the time-declining Ramsey discount rate. The components of this hidden-state Ramsey discounting formula are then analyzed, followed by a few remarks about possible implications and applications. Copyright Springer Science+Business Media B.V. 2012 Discounting, Climate change, Long term, Hidden state, 3 2012 53 11 Environmental and Resource Economics 309 321 http://hdl.handle.net/10.1007/s10640-012-9594-y text/html Access to full text is restricted to subscribers. Martin Weitzman mweitzman@harvard.edu
oai:RePEc:kap:enreec:v:64:y:2016:i:1:d:10.1007_s10640-015-9936-72020-08-08RePEc:kap:enreec
article Substitutability and the Cost of Climate Mitigation Policy Abstract We explore how and by how much the values of elasticities of substitution affect estimates of the cost of emissions reduction policies in computable general equilibrium (CGE) models. We use G-Cubed, an intertemporal CGE model, to carry out a sensitivity and factor decomposition analysis. The decomposition analysis determines the contributions of changes in average abatement costs and changes in baseline emissions to the change in total mitigation costs. The latter has not previously been considered. Average abatement cost rises non-linearly as elasticities are reduced. Changes in the substitution elasticities between capital, labor, energy, and materials have a greater impact on mitigation costs than do inter-fuel elasticities of substitution. The former have more effect on business as usual emissions and the latter on average abatement costs. As elasticities are reduced, business as usual emissions and GDP growth also decrease so that there is not much variation in the total costs of reaching a given target across the parameter space. Our results confirm that the cost of climate mitigation policy is at most a few percent of global GDP. Elasticity of substitution, Mitigation policy, CGE models, G-Cubed, Sensitivity analysis, Decomposition analysis 1 2016 64 5 5 Environmental and Resource Economics 81 107 Q54 Q58 C68 http://link.springer.com/10.1007/s10640-015-9936-7 text/html Abstract Yingying Lu yingying_lu@shu.edu.cn Shanghai University David I. Stern david.stern@anu.edu.au The Australian National University
oai:RePEc:kap:enreec:v:2:y:1992:i:5:p:459-4682020-08-08RePEc:kap:enreec
article Profits from violating controls on the use of a polluting input Profits from violating the quota, charge and permit market systems are compared. The results indicate that, for a given permit price, the violation profits of the charge and permit market systems are the same and exceed the profits from violating a quota system if the optimal use of inputs in a compliant market is lower than the quota. It is also shown that, under a permit market system, the occurrence of violation decreases the equilibrium price of permits. This implies that the profits from violating a permit market are lower than violation profits of a charge system. Copyright Kluwer Academic Publishers 1992 Policy instruments, polluting input, violation profits, 5 1992 2 9 Environmental & Resource Economics 459 468 http://hdl.handle.net/10.1007/BF00376829 text/html Access to full text is restricted to subscribers. Ing-Marie Andréasson-Gren
oai:RePEc:kap:enreec:v:20:y:2001:i:3:p:241-2542020-08-08RePEc:kap:enreec
article What Experimental Protocol Influence Disparities Between Actual and Hypothetical Stated Values? Preferences elicited in hypothetical settings have recently come underscrutiny, causing estimates from the contingent valuation method to bechallenged due to perceived ``hypothetical bias.'' Given that the receivedliterature derives value estimates using heterogeneous experimentaltechniques, understanding the effects of important design parameters onthe magnitude of hypothetical bias is invaluable. In this paper, we addressthis issue statistically by using a meta-analysis to examine data from 29experimental studies. Our empirical findings suggest that on averagesubjects overstate their preferences by a factor of about 3 in hypotheticalsettings, and that the degree of over-revelation is influenced by thedistinction between willingness-to-pay and willingness-to-accept, publicversus private goods, and several elicitation methods. Copyright Kluwer Academic Publishers 2001 CVM, hypothetical bias, meta-analysis, 3 2001 20 11 Environmental and Resource Economics 241 254 http://hdl.handle.net/10.1023/A:1012791822804 text/html Access to full text is restricted to subscribers. John List Craig Gallet cgallet@juno.com
oai:RePEc:kap:enreec:v:4:y:1994:i:5:p:401-4172020-08-08RePEc:kap:enreec
article Alternative standards and instruments for air pollution control in Poland Like other Central European countries, Poland faces the twin challenges of improving environmental quality while also fostering sustainable economic development. In this study we examine the costs of different standards for air pollution control, and the cost savings from using incentive-based policy instruments in lieu of more rigid command-and-control policies. The comparisons are based on the results of a simulation model of energy use and air pollution control for the Polish economy over 1990–2015. The model simulates least-cost energy supply decisions under different environmental policy assumptions, the corresponding emissions, and the cost of achieving the specified policy objectives. The model results suggest that incentive-based policies will have efficiency gains over command policies that are at least worthy of consideration and may be quite substantial. The size of the gains in practice depends in part on how much flexibility is built into the command approach, e.g., capacity for intrafirm trading as well as alack of technology-specific requirements. To achieve these gains, an increase in the current levels of emissions fees is desirable both to strengthen abatement incentives and to improve the capacity of the Polish government to overcome past environmental damages. However, it seems highly unlikely in practice that fees could be raised to the levels necessary to meet current Polish emissions standards. To make further headway, an evolutionary approach to emissions trading patterned after (and profiting from the experience with) emissions trading in the U.S. seems useful. The program could start out relatively modestly and increase in ambitiousness as the Polish economic transition proceeds. Copyright Kluwer Academic Publishers 1994 Air pollution policy, Central and Eastern Europe, economic incentives, simulation analysis, 5 1994 4 10 Environmental & Resource Economics 401 417 http://hdl.handle.net/10.1007/BF00691920 text/html Access to full text is restricted to subscribers. Michael Toman Toman@RFF.org Janusz Cofała Robin Bates
oai:RePEc:kap:enreec:v:38:y:2007:i:2:p:245-2582020-08-08RePEc:kap:enreec
article General equilibrium impact of an energy-saving policy in the public sector Resource conservation, Energy conservation, Public spending, Employment, General equilibrium, Multi-sectors models, E62, H57, Q38, 2 2007 38 10 Environmental and Resource Economics 245 258 http://hdl.handle.net/10.1007/s10640-006-9075-2 text/html Access to full text is restricted to subscribers. Philippe Quirion quirion@centre-cired.fr Meriem Hamdi-Cherif
oai:RePEc:kap:enreec:v:33:y:2006:i:1:p:95-1182020-08-08RePEc:kap:enreec
article International Trade and the Environment: Theoretical and Policy Linkages I review and extend three approaches to trade and environmental policies: competitive general equilibrium, oligopoly and monopolistic competition. The first two have surprisingly similar implications: deviations from first-best rules are justified only by constraints on policy choice (which motivates what I call a “single dividend” approach to environmental policy), and taxes and emissions standards differ in ways which reflect the Le Chatelier principle. I also show how environmental taxes may lead to a catastrophic relocation of industry in the presence of agglomeration effects, although not necessarily if there is a continuum of industries which differ in pollution intensity. Copyright Springer 2006 environmental policy, international trade policy, location and economic geography, pollution abatement, strategic trade policy, O13, L13, F12, 1 2006 33 01 Environmental & Resource Economics 95 118 http://hdl.handle.net/10.1007/s10640-005-1707-4 text/html Access to full text is restricted to subscribers. J. Neary jpneary@iol.ie
oai:RePEc:kap:enreec:v:28:y:2004:i:2:p:123-1522020-08-08RePEc:kap:enreec
article On Impatience, Economic Growth and the Environmental Kuznets Curve: A Dynamic Analysis of Resource Management The paper presents a dynamic analysis of natural resource management and investigates some key factors that affect optimal management and resource conservation.Using a recursive specification of time preferences, we show how endogenous discounting and impatience can affect the motivation for both capital investments and environmental preservation. We examine the relationships between economic growth and environmental quality. Endogenous discounting provides new insights in the economic dynamics underlying the environmental Kuznets curve. By treating growth as endogenous, we examine how externalities and economic growth interact with each other. We investigate how economic development can contribute to an increased demand for environmental preservation. As an important new result, we also show how poverty can contribute to environmental degradation. Copyright Kluwer Academic Publishers 2004 dynamics, economic growth, environmental Kuznets curve, impatience, 2 2004 28 6 Environmental and Resource Economics 123 152 http://hdl.handle.net/10.1023/B:EARE.0000029913.49860.e3 text/html Access to full text is restricted to subscribers. Jean-Paul Chavas jpchavas@arec.umd.edu
oai:RePEc:kap:enreec:v:40:y:2008:i:2:p:233-2492020-08-08RePEc:kap:enreec
article Can Ecolabeling Schemes Preserve the Environment? Altruism, Eco-labels, Duopoly, Environmental policy, D11, D21, L15, 2 2008 40 6 Environmental and Resource Economics 233 249 http://hdl.handle.net/10.1007/s10640-007-9150-3 text/html Access to full text is restricted to subscribers. Lisette Ibanez ibanez@nancyengref.inra.fr Gilles Grolleau grolleau@ensam.inra.fr
oai:RePEc:kap:enreec:v:29:y:2004:i:3:p:257-2832020-08-08RePEc:kap:enreec
article Wealth, Natural Capital, and Sustainable Development: Contrasting Examples from Botswana and Namibia Theoretical work has demonstrated that sustainable development requires non-declining per capita wealth, where wealth is defined to include produced, natural, human and social capital. Several studies have attempted to measure total national wealth or changes in wealth, but have been seriously hampered by a lack of data, especially for natural and human capital. To address this problem, the UN and other international statistical agencies developed a standardized framework for environmental accounts, the System of integrated Environmental and Economic Accounts (SEEA). Using the newly available asset accounts for natural capital, national wealth accounts are constructed and used to assess the contrasting development paths of Botswana and Namibia. Botswana, with an explicit policy of reinvestment of resource rents, has roughly tripled per capita wealth and national income over the past two decades. Namibia, with no explicit policy to use natural capita to build wealth, has seen per capita wealth and income decline. Copyright Kluwer Academic Publishers 2004 Botswana, environmental accounting, Namibia, natural capital, sustainable development, wealth, 3 2004 29 11 Environmental and Resource Economics 257 283 http://hdl.handle.net/10.1007/s10640-004-4045-z text/html Access to full text is restricted to subscribers. Glenn-marie Lange
oai:RePEc:kap:enreec:v:26:y:2003:i:3:p:494-4952020-08-08RePEc:kap:enreec
article James D. Gaisford, Jill E. Hobbs, William A. Kerr, Nicholas Perdikis, and Marni D. Plunkett, 2001, The Economics of Biotechnology 3 2003 26 11 Environmental and Resource Economics 494 495 http://hdl.handle.net/10.1023/B:EARE.0000003722.03703.ad text/html Access to full text is restricted to subscribers. Roger Mann rmecon@sbcglobal.net
oai:RePEc:kap:enreec:v:14:y:1999:i:4:p:481-5012020-08-08RePEc:kap:enreec
article Environment-Friendly Behaviour and Competitiveness: A Study of Pulp and Paper Industry in India This paper seeks to examine the relationship between competitiveness and environment-friendly behaviour of producers under an economic liberalisation regime. For that purpose, it employs a probit model and estimates the influence of the prime movers of industrial growth such as technical change and economies of scale on environmental degradation. The empirical results of the study of pulp and paper industry, identified as one of the most polluting industries in India, indicate that these variables, as the key players of competitiveness improvement, have positive influence on environment-friendly behaviour. Such findings, therefore, fail to provide support to a view that articulates ruthless exploitation of the environment under economic liberalisation programme. Copyright Kluwer Academic Publishers 1999 competitiveness, economies of scale, environment-friendly behaviour, technical change, 4 1999 14 12 Environmental and Resource Economics 481 501 http://hdl.handle.net/10.1023/A:1008349517771 text/html Access to full text is restricted to subscribers. Gopinath Pradhan Kaustuva Barik
oai:RePEc:kap:enreec:v:13:y:1999:i:2:p:187-2072020-08-08RePEc:kap:enreec
article Environmental Policy, Tax Incidence, and the Cost of Public Funds This paper studies under what conditions a ‘double dividend’ may occur in the sense that both environmental quality and employment rise. A simple static general equilibrium model is employed in which tax policy faces the dual task of internalising a negative environmental externality and raising revenue to finance public consumption. The model features a clearing labour market with both labour demand and supply and a fixed factor of production (e.g. capital). Hence, we can study tax incidence and its effect on employment, environmental quality, and the marginal cost of public funds. It is shown for the case of an upward sloping labour supply curve and less than full tax shifting by employers that a shift towards greener preferences cannot yield a double dividend, even if the fixed factor is important. However, if labour supply curve bends backwards, more environmental concern confers a double dividend. Copyright Kluwer Academic Publishers 1999 cost of public funds, double dividend, environmental externalities, pollution, public abatement, optimal taxation, public goods, tax incidence, 2 1999 13 3 Environmental and Resource Economics 187 207 http://hdl.handle.net/10.1023/A:1008258320732 text/html Access to full text is restricted to subscribers. Jenny Ligthart Frederick Van Der Ploeg
oai:RePEc:kap:enreec:v:49:y:2011:i:1:p:23-452020-08-08RePEc:kap:enreec
article Turning Water into Carbon: Carbon Sequestration and Water Flow in the Murray–Darling Basin Large scale forest plantations in the Murray–Darling Basin are a possible carbon sequestration mechanism which may be adopted in response to the introduction of a carbon price. However, increased tree plantation will be associated with reduced inflows to river systems because of increased transpiration, interception and evaporation. This could have significant implications for regions vulnerable to drought. This study examines the interaction between carbon pricing, water pricing, and agricultural land use in the Murray–Darling Basin and its impact on water flow under current and climate change settings. Copyright Springer Science+Business Media B.V. 2011 Carbon sequestration, Forestry, Water, Murray–Darling Basin, 1 2011 49 5 Environmental and Resource Economics 23 45 http://hdl.handle.net/10.1007/s10640-010-9422-1 text/html Access to full text is restricted to subscribers. Peggy Schrobback David Adamson John Quiggin j.quiggin@uq.edu.au
oai:RePEc:kap:enreec:v:50:y:2011:i:4:p:585-6032020-08-08RePEc:kap:enreec
article The Ancillary Benefits from Climate Policy in the United States Climate change, Co-benefits, Local air pollution, Human health, Value of a statistical life, 4 2011 50 12 Environmental and Resource Economics 585 603 http://hdl.handle.net/10.1007/s10640-011-9483-9 text/html Access to full text is restricted to subscribers. Britt Groosman bgroosman@edf.org Nicholas Muller nmuller@middlebury.edu Erin O’Neill-Toy e.oneill.toy@gmail.com
oai:RePEc:kap:enreec:v:9:y:1997:i:2:p:239-2582020-08-08RePEc:kap:enreec
article Chernobyl effects on domestic and inbound tourism in Sweden — A time series analysis This paper estimates the impact of the Chernobyl nuclear accident on domestic and international tourism in Sweden. From ARIMA time series forecasts, outlier search, and intervention analysis based on regional monthly accommodation data from 1978–1989, no effect on domestic tourism is found. However, there is an enduring deterrence effect on incoming tourism. The loss of gross revenue from incoming tourism because of the Chernobyl accident, is estimated to 2.5 billion SEK. Copyright Kluwer Academic Publishers 1997 tourism, Chernobyl, intervention analysis, 2 1997 9 3 Environmental & Resource Economics 239 258 http://hdl.handle.net/10.1007/BF02441380 text/html Access to full text is restricted to subscribers. Lars Hultkrantz Christina Olsson
oai:RePEc:kap:enreec:v:14:y:1999:i:1:p:1-182020-08-08RePEc:kap:enreec
article Environmental Health Risks and Tradable Health Risk Permits Health risk permits are suggested as an instrument for the systematic management of all health-relevant pollutants. These permits are denominated in statistical deaths due to pollution and have to be acquired by firms which emit pollutants inimical to health. They have two advantages: First, they guarantee that a clear decision about the acceptable number of statistical deaths due to pollution is made. Second, health risk permits are able to realize any level of health risk thus chosen in an efficient way. However, in practice some compromises have to be made: The health risk function relating emissions to health risk must employ some simplifying assumptions and complementary regulation is needed to make health risk permits feasible and acceptable. Furthermore, there are other aims of environmental policy besides the preservation of human health, such as climate control and conservation, for which health risk permits are of no use. Copyright Kluwer Academic Publishers 1999 1 1999 14 7 Environmental and Resource Economics 1 18 http://hdl.handle.net/10.1023/A:1008339303484 text/html Access to full text is restricted to subscribers. Fritz Söllner
oai:RePEc:kap:enreec:v:12:y:1998:i:2:p:167-1842020-08-08RePEc:kap:enreec
article The Acid Rain Differential Game This paper considers an acid rain differential game. Countries emit sulphur which is partly transferred to other countries. Depositions above critical loads ultimately destroy the soil. Countries face a trade-off between the costs of emission reductions and the damage to the soil due to the depletion of the acid buffers. Because of the transboundary externalities the outcome will depend on whether the countries cooperate or not. This paper presents the cooperative outcome and the open-loop and Markov-perfect Nash equilibria of the acid rain differential game. It will be shown that the depositions always converge to the critical loads but the steady-state levels of the buffer stocks differ. The theory is used to analyse the acid rain differential game for sulphur between Great Britain and Ireland. Finally, some results are given for the whole of Europe. Copyright Kluwer Academic Publishers 1998 acid rain, critical loads, differential games, 2 1998 12 9 Environmental and Resource Economics 167 184 http://hdl.handle.net/10.1023/A:1008273509255 text/html Access to full text is restricted to subscribers. Karl-Göran Mäler Aart De Zeeuw adezeeuw@kub.nl
oai:RePEc:kap:enreec:v:65:y:2016:i:1:d:10.1007_s10640-015-9933-x2020-08-08RePEc:kap:enreec
article International Agreements in the Multispecies Baltic Sea Fisheries Abstract This study analyses a multispecies (cod, herring and sprat) partition function game among three asymmetric countries in the Baltic Sea. Through an empirical application, the study highlights the importance of dynamic multispecies models in coalition formation. We show that the grand coalition between the three countries can be stabilised when the most efficient country compensates the other countries. This solution is not feasible when using a single-species model for the cod population; thus, taking into account the multispecies nature of the Baltic Sea fisheries, the scope of cooperation increases compared with a single-species simulation. In contrast to the predominant conception, climate change may improve the likelihood of a binding agreement because with a lower cod biomass, countries will gain more from cooperation. Baltic cod, Baltic Sea, Bio-economic modelling, Climate change, Coalition formation game, Ecosystem model, International agreements, Multispecies model, Partition function game 1 2016 65 9 7 Environmental and Resource Economics 109 134 http://link.springer.com/10.1007/s10640-015-9933-x text/html Abstract Emmi Nieminen emmi.e.nieminen@helsinki.fi University of Helsinki Lone Grønbæk Kronbak University of Southern Denmark Marko Lindroos University of Helsinki
oai:RePEc:kap:enreec:v:52:y:2012:i:2:p:181-1932020-08-08RePEc:kap:enreec
article Decentralized Management of a Fishery Natural resource, Fish war, Difference game, Mechanism design, Q20, C73, 2 2012 52 6 Environmental and Resource Economics 181 193 http://hdl.handle.net/10.1007/s10640-012-9552-8 text/html Access to full text is restricted to subscribers. Sébastien Rouillon rouillon@u-bordeaux4.fr
oai:RePEc:kap:enreec:v:31:y:2005:i:3:p:349-3672020-08-08RePEc:kap:enreec
article Costly Coasean Bargaining and Property Right Security This paper examines how transaction costs affect Coasean bargaining with secure and insecure property rights in the lab. Consistent with the theory that secure property rights lowers the cost of non-cooperation, we find that bargaining efficiency is inversely related to property right security. Less secure property rights increased economic efficiency twofold. Property owners with secure rights are more likely to opt for their riskless outside option rather than pay the costs of bargaining. Copyright Springer 2005 bargaining, Coase theorem, property rights, valuation, C9, Q0, 3 2005 31 07 Environmental & Resource Economics 349 367 http://hdl.handle.net/10.1007/s10640-005-1377-2 text/html Access to full text is restricted to subscribers. Todd Cherry cherrytl@appstate.edu Jason Shogren
oai:RePEc:kap:enreec:v:59:y:2014:i:4:p:561-5812020-08-08RePEc:kap:enreec
article Estimation of Residential Water Demand with Imperfect Price Perception Using data from a household survey carried out in the French overseas territory of Réunion, we investigate the price of drinking-water perceived by households faced with an increasing, multi-step pricing scheme. To this purpose we use an improved version of the method introduced by Shin (Rev Econ Stat 67(4):591–598, 1985 ) to estimate the demand for residential water when consumers are imperfectly informed about their pricing schedule. The empirical results suggest that Réunion households underestimate the price of water and thus consume more than what is economically rational. Providing information to households about the marginal price of water may be an innovative means of inducing them to respond to pricing policies designed to promote water conservation. Copyright Springer Science+Business Media Dordrecht 2014 Artificial nesting, Increasing block tariffs, Non nested models, Price information policies, Price perception , Residential water demand, 4 2014 59 12 Environmental and Resource Economics 561 581 http://hdl.handle.net/10.1007/s10640-013-9750-z text/html Access to full text is restricted to subscribers. Marie-Estelle Binet marie-estelle.binet@univ-rennes1.fr Fabrizio Carlevaro Michel Paul
oai:RePEc:kap:enreec:v:15:y:2000:i:2:p:103-1132020-08-08RePEc:kap:enreec
article Resource Management and the Mayor's Guarantee in French Water Allocation This paper uses standard methods in stochastic calculus tomeasure the cost of the agency conflict that pits electedofficials of French municipalities against the communities theyrepresent in the management of the water supply. Under the Frenchlegal code, the municipalities are responsible for the watersupply and the elected officials are personally liable for anydamage due to negligence on their part. Uncertainty regardingexactly how negligence will be defined by the courts puts theelected officials in a precarious position. By delegatingauthority to an oligopoly of private firms, however, electedofficials can eliminate their personal liability, which istransferred to the delegated firm. Many studies argue thatdelegation locks communities into long-term contracts that areagainst their better interests. Thus, the agency conflict mayaffect the delegation decision to the detriment of the community.To determine whether or not this is true it is necessary to knowthe economic cost of the mayor's personal liability. Copyright Kluwer Academic Publishers 2000 delegation, insurance mechanisms, technological changes, water systems, 2 2000 15 2 Environmental and Resource Economics 103 113 http://hdl.handle.net/10.1023/A:1008326220811 text/html Access to full text is restricted to subscribers. Ephraim Clark e.clark@mdx.ac.uk Gérard Mondello
oai:RePEc:kap:enreec:v:44:y:2009:i:4:p:457-4742020-08-08RePEc:kap:enreec
article Fishing Revenue, Productivity and Product Choice in the Alaskan Pollock Fishery Fisheries, Revenue function, Productivity, Environmental factors, 4 2009 44 12 Environmental and Resource Economics 457 474 http://hdl.handle.net/10.1007/s10640-009-9295-3 text/html Access to full text is restricted to subscribers. Catherine Paul cjmpaul@primal.ucdavis.edu Marcelo O. Torres torres@primal.ucdavis.edu Ronald Felthoven ron.felthoven@noaa.gov
oai:RePEc:kap:enreec:v:51:y:2012:i:3:p:471-4722020-08-08RePEc:kap:enreec
article Gernot Wagner: But Will the Planet Notice 3 2012 51 3 Environmental and Resource Economics 471 472 http://hdl.handle.net/10.1007/s10640-011-9534-2 text/html Access to full text is restricted to subscribers. Thomas Sterner Thomas.sterner@economics.gu.se
oai:RePEc:kap:enreec:v:7:y:1996:i:4:p:391-4112020-08-08RePEc:kap:enreec
article Environmental tariffs on polluting imports This paper examines the implications for the use of trade measures as “weapons” to address global environmental concerns. There are already proposals in the U.S. senate to impose an environmental tariff against foreign nations whose cost advantages stem from less stringent environmental standards than the U.S. The paper argues that trade policy measures typically are not the first best instruments for achieving environmental objectives. Even theoretically they could be shown to be welfare improving only under a very narrow range of circumstances. Their use in place of more efficient policy instruments may not only end up distorting the patterns of world trade but also may worsen the overall patterns of environmental quality. Simulation exercises undertaken here suggest that it is highly unlikely that countries would alter their environmental behavior because of the imposition of the proposed U.S. tariff. Hence the proposed legislation has very uncertain environmental consequences. Even if the policy has been mainly designed to protect domestic industries, it would only provide a minor margin of protection because the costs of complying with the environmental standards represent a relatively small element in the total costs. The analysis suggests that trade policy introduced in this fashion will have no significant impact on the patterns of world trade and pollution. Copyright Kluwer Academic Publishers 1996 environmental tariff, pollution abatement expenditures, pollution-intensity, trade policy, transnational pollution, 4 1996 7 6 Environmental and Resource Economics 391 411 http://hdl.handle.net/10.1007/BF00369626 text/html Access to full text is restricted to subscribers. Muthukumara Mani
oai:RePEc:kap:enreec:v:39:y:2008:i:4:p:481-4952020-08-08RePEc:kap:enreec
article Cognitive ability and scale bias in the contingent valuation method Cognitive ability, Contingent valuation, Mortality risk, Near-proportionality, Scale bias, D80, I10, Q51, 4 2008 39 4 Environmental and Resource Economics 481 495 http://hdl.handle.net/10.1007/s10640-007-9137-0 text/html Access to full text is restricted to subscribers. Henrik Andersson henrik.andersson@vti.se Mikael Svensson
oai:RePEc:kap:enreec:v:55:y:2013:i:3:p:419-4452020-08-08RePEc:kap:enreec
article The Welfare Impact of Self-supplied Water Pricing in Canada: A Computable General Equilibrium Assessment This paper uses a computable general equilibrium model to assess the welfare cost of changing the method of water allocation in Canada towards one that uses prices to ration demand. We model the introduction of a price on both water that is abstracted as well as water that is consumed (that is abstracted, and not returned to the source). We estimate that reducing water consumption by 25 % would require imposition of a price on water consumption of around $$\$0.21/\text{ m }^{3}$$ . Similarly, introduction of a water abstraction charge of about $$\$0.013/\text{ m }^{3}$$ would be sufficient to reduce water abstraction by 25 %. We find that if revenues from water pricing are returned in lump sum to households, the introduction of water pricing would result in a modest welfare loss. When revenues from water pricing are used to offset existing taxes, we find a gain in welfare corresponding to a ‘strong double dividend.’ Copyright Springer Science+Business Media Dordrecht 2013 Water, Computable general equilibrium, Model, Tax, Double dividend, 3 2013 55 7 Environmental and Resource Economics 419 445 http://hdl.handle.net/10.1007/s10640-013-9633-3 text/html Access to full text is restricted to subscribers. Nicholas Rivers nrivers@uottawa.ca Steven Groves slgroves.work@gmail.com
oai:RePEc:kap:enreec:v:2:y:1992:i:2:p:117-1392020-08-08RePEc:kap:enreec
article International aspects of pollution control Pollution is a by-product of production, is only gradually dissolved by the environment, and crosses national borders. The market outcome ignores the adverse effects of pollution and thus yields higher levels of output and pollution than would prevail under a supranational social planner which does care about pollution. In practice, governments often do not cooperate and this leads to outcomes of pollution and production in between the market outcomes and the outcomes under supra-national social planning. Absence of precommitment leads to lower emission charges, less cleaning-up activities and more pollution. Appropriate levels of emission charges under the various outcomes are a result of this analysis. Attention is also paid to investment in clean technology. The debate between optimists, who believe that higher production is compatible with sound environmental policy, and pessimists can be analysed in this way. Copyright Kluwer Academic Publishers 1992 Pollution control, international policy games, 2 1992 2 3 Environmental & Resource Economics 117 139 http://hdl.handle.net/10.1007/BF00338239 text/html Access to full text is restricted to subscribers. Frederick Ploeg Aart Zeeuw
oai:RePEc:kap:enreec:v:61:y:2015:i:3:p:433-4612020-08-08RePEc:kap:enreec
article Can Poorly Informed Regulators Hinder Competition? This paper considers an entry-deterrence game in which environmental policy is set without perfectly observing the incumbent firm’s costs. We investigate if regulators, who can have an informational advantage relative to the potential entrant, support entry-deterring practices. The paper demonstrates that, while entry-deterring equilibria only emerge under restrictive conditions when the regulator is perfectly informed, these equilibria arise under larger settings as he becomes uninformed. Furthermore, we show that the regulator is willing to support the incumbent’s entry-deterring practices regardless of his degree of information if entry costs are sufficiently high. However, when entry costs are lower, the regulator only sustains this type of practices if he is poorly informed. Copyright Springer Science+Business Media Dordrecht 2015 Entry deterrence, Signaling, Emission fees, Informational advantage, D82, H23, L12, Q5, 3 2015 61 7 Environmental and Resource Economics 433 461 http://hdl.handle.net/10.1007/s10640-014-9801-0 text/html Access to full text is restricted to subscribers. Ana Espínola-Arredondo anaespinola@wsu.edu Félix Muñoz-García fmunoz@wsu.edu
oai:RePEc:kap:enreec:v:31:y:2005:i:1:p:47-722020-08-08RePEc:kap:enreec
article A ‘Natural Experiment’ Approach to Contingent Valuation of Private and Public UV Health Risk Reduction Strategies in Low and High Risk Countries We present the results of a ‘natural experiment’ to test how variations in exogenous risk levels affect resultant willingness to pay (WTP) for risk reduction. The case study presented considers WTP for reductions in the skin cancer risks associated with exposure to solar UV radiation. A common design contingent valuation survey is conducted in four countries, across which variation in geographical latitude and genetic mix mean that exogenous risks differ substantially. Survey respondents were presented with both a private and public good route for affecting risk reduction. In both cases, results confirm that once adjustment had been made for expected relationships with other covariates (such as income and risk averting behaviour), valuation responses for both goods conformed to expectations with the ordering of values across countries reflecting the ordering of scientifically established health risks. This suggests that links between values and objective health risks may be observed within such situations and provides a justification for continuing research into more natural representations of risk and risk reductions in order to yield consistent and robust measures of associated values. Copyright Springer 2005 contingent valuation, health risks, natural experiments, sunbathing, UV radiation, 1 2005 31 05 Environmental & Resource Economics 47 72 http://hdl.handle.net/10.1007/s10640-004-6978-7 text/html Access to full text is restricted to subscribers. Ian Bateman i.bateman@uea.ac.uk Roy Brouwer Stavros Georgiou Nick Hanley Fernando Machado Susana Mourato Caroline Saunders
oai:RePEc:kap:enreec:v:46:y:2010:i:2:p:179-1882020-08-08RePEc:kap:enreec
article Values of Gains and Losses: Reference States and Choice of Measure Reference dependence, Value disparity, Welfare measures, 2 2010 46 6 Environmental and Resource Economics 179 188 http://hdl.handle.net/10.1007/s10640-010-9355-8 text/html Access to full text is restricted to subscribers. Jack Knetsch knetsch@sfu.ca
oai:RePEc:kap:enreec:v:63:y:2016:i:2:d:10.1007_s10640-015-9896-y2020-08-08RePEc:kap:enreec
article Impact Evaluation of Forest Conservation Programs: Benefit-Cost Analysis, Without the Economics Abstract Economists are increasingly using impact evaluation methods to measure the effectiveness of forest conservation programs. Theoretical analysis of two complementary economic models demonstrates that the average treatment effect on the treated (ATT) typically reported by these studies can be related to an economic measure of program performance only under very restrictive conditions. This is because the ATT is usually expressed in purely physical terms (e.g., avoided deforestation) and ignores heterogeneity in the costs and benefits of conservation programs. For the same reasons, clinical trials are a misleading analogy for the evaluation of conservation programs. To be more useful for economic analyses of conservation programs, impact evaluations should work toward developing measures of program outcomes that are economically more relevant, data that would enable the evaluation of impacts on forest degradation (not just deforestation) and primary forests (not forests in general), better estimates of spatially disaggregated treatment effects (not program-wide averages), and better information on the accuracy of estimated treatment effects as predictors of future risks. Conservation economics, Deforestation, Degradation, Impact evaluation, Primary forest, Protected area 2 2016 63 2 9 Environmental and Resource Economics 395 408 http://link.springer.com/10.1007/s10640-015-9896-y text/html Abstract Jeffrey R. Vincent Jeff.Vincent@duke.edu Duke University
oai:RePEc:kap:enreec:v:60:y:2015:i:1:p:37-542020-08-08RePEc:kap:enreec
article Climate Policy with Technology Transfers and Permit Trading In this paper, we analyze technology transfers (TT) and tradable emission rights, which are core issues of the ongoing climate negotiations. Subsidizing TT leads to the adoption of better abatement technologies in the South, thereby reducing the international permit price. This is beneficial for the North as long as it is a permit buyer; hence it chooses to subsidize TT. By contrast, the permit selling South suffers from the lower permit price and its welfare usually deteriorates, despite receiving subsidies. We also consider how TT affects countries’ non-cooperative choices of permit endowments and find that it tends to reduce overall emissions. Finally, a simple numerical simulation model illustrates the results and explores some further comparative statics. Copyright Springer Science+Business Media Dordrecht 2015 Emissions trading, Technology transfer, International climate policy, Additionality, Subsidies, D62, D78, H41, O38, Q58, 1 2015 60 1 Environmental and Resource Economics 37 54 http://hdl.handle.net/10.1007/s10640-013-9756-6 text/html Access to full text is restricted to subscribers. Carsten Helm carsten.helm@uni-oldenburg.de Stefan Pichler pichler@kof.ethz.ch
oai:RePEc:kap:enreec:v:30:y:2005:i:1:p:35-482020-08-08RePEc:kap:enreec
article Asymmetric Regulation of Identical Polluters in Oligopoly Models Studies of optimal second-best environmental regulation of identical polluting agents have invariably ignored potentially welfare-improving asymmetric regulation by imposing equal regulatory treatment of identical firms at the outset. Yet, cost asymmetry between oligopoly firms may well give rise to private as well as social gains. A trade-off is demonstrated for the regulator, between private costs savings and additional social costs when asymmetric treatment is allowed. Asymmetry is indeed optimal for a range of plausible parameter values. Further, it is demonstrated that for a broad class of abatement cost functions, there is scope for increasing welfare while keeping both total output and total emission constant. Some motivating policy issues are discussed in light of the results, including international harmonization and global carbon dioxide reduction. Copyright Springer 2005 asymmetric emissions regulation, polluting oligopolists, EU harmonization, 1 2005 30 1 Environmental & Resource Economics 35 48 http://hdl.handle.net/10.1007/s10640-004-1044-z text/html Access to full text is restricted to subscribers. Rabah Amir Niels Nannerup nna@sam.sdu.dk
oai:RePEc:kap:enreec:v:19:y:2001:i:1:p:53-722020-08-08RePEc:kap:enreec
article Is the Current Regulation of the VIII Division European Anchovy Optimal? This paper sets out to assess the workability of the regulation currently in force in the European anchovy fishery of the VIII division. Particular attention is paid to the importance of the institutional regime in the allocation of natural resources. The study uses a bio-economic approach and takes into account the fact that, not only the European Union and the individual countries involved, but also some of the resource users or appropriators intervene in its management. In order to compare the effectiveness of the rules which, at the various levels, have been set up to restrict exploitation of the resource, the anchovy fishery is simulated in two extreme situations: open access and sole ownership. The results obtained by effective management will then be contrasted with those obtained from the maximum and zero profit objectives related with the two above-mentioned scenarios. Thus, if the real data come close to those derived from the sole ownership model it will have to be acknowledged that the rules at present in force are optimal. If, on the other hand, the situation more closely approach the results obtained from the open access model, we will endeavour in our conclusions to provide suggestions for economic policy measures that might improve the situation in the fishery. Copyright Kluwer Academic Publishers 2001 common pool resources, co-management, European anchovy fishery, open access, sole owner, 1 2001 19 5 Environmental and Resource Economics 53 72 http://hdl.handle.net/10.1023/A:1011127610739 text/html Access to full text is restricted to subscribers. Ikerne del Valle ikerne@unavarra.es Inmaculada Astorkiza Kepa Astorkiza
oai:RePEc:kap:enreec:v:33:y:2006:i:3:p:325-3462020-08-08RePEc:kap:enreec
article Eliciting Subjective Beliefs about Mortality Risk Orderings We develop an experimental method to elicit subjective beliefs about the ordering of mortality risk over different causes of death. The experimental procedure emphasizes incentive-compatibility, so that the individual has a positive financial incentive to respond truthfully. We also consider the extent to which individuals have subjective beliefs for sub-segments of the population that are more accurate than their beliefs about the risks for the population as a whole. We propose several hypotheses concerning the degree of familiarity of the risks, and find that the evidence supports those hypotheses. The evidence also suggests that there is no discernible difference between beliefs elicited using hypothetical or real financial rewards in the elicitation format we use. Our findings restore some confidence in the ability to elicit beliefs about mortality risks, and therefore to get reliable estimates of the monetary value of a statistical life. Copyright Springer 2006 3 2006 33 03 Environmental & Resource Economics 325 346 http://hdl.handle.net/10.1007/s10640-005-3608-y text/html Access to full text is restricted to subscribers. Glenn Harrison Gharrison@research.bus.ucf.edu Elisabet Rutström
oai:RePEc:kap:enreec:v:64:y:2016:i:2:d:10.1007_s10640-014-9865-x2020-08-08RePEc:kap:enreec
article Decomposing the Environmental Effects of Trade Liberalization: The Case of Consumption-Generated Pollution Abstract This paper investigates the effect of international trade on consumption-generated (“tailpipe”) pollution. For countries exporting the dirty good, trade liberalization increases its price, thus increasing domestic production and decreasing domestic consumption of dirty goods at the same time. This forces pollution from production and consumption to move in opposite directions, leading us to expect that trade-induced composition effects work differently for tailpipe and smokestack pollution. Our theoretical model predicts that capital abundance reinforces the pollution policy effect for tailpipe pollution, counter to the case with smokestack pollution. Empirical support for this comes from our analysis of an international panel of data on carbon monoxide emissions. We find evidence in support of an effect analogous to the pollution haven hypothesis, which has typically not been observed in previous literature. Thus trade liberalization may affect smokestack and tailpipe pollution differently. International trade, Tailpipe pollution, Pollution haven hypothesis, Composition effects, Trade induced composition effects 2 2016 64 6 3 Environmental and Resource Economics 205 223 F18 Q56 http://link.springer.com/10.1007/s10640-014-9865-x text/html Abstract Bin Hu hubin1981@hotmail.com Central University of Finance and Economics Ross McKitrick rmckitri@uoguelph.ca University of Guelph
oai:RePEc:kap:enreec:v:34:y:2006:i:1:p:125-1622020-08-08RePEc:kap:enreec
article Experimental Evidence on Alternative Environmental Valuation Methods Experimental methods are central to assessments of environmental valuation approaches that are operationally meaningful. Existing lab experiments focus attention sharply on the neglect of hypothetical bias. They also offer constructive solutions to correct this bias, and beg for validation in field experiments. Copyright Springer 2006 experiments, valuation, hypothetical bias, 1 2006 34 05 Environmental and Resource Economics 125 162 http://hdl.handle.net/10.1007/s10640-005-3792-9 text/html Access to full text is restricted to subscribers. Glenn Harrison gharrison@bus.ucf.edu
oai:RePEc:kap:enreec:v:41:y:2008:i:1:p:25-462020-08-08RePEc:kap:enreec
article Precautionary Principle and Robustness for a Stock Pollutant with Multiplicative Risk Global warming, Knightian uncertainty, Multiplicative disturbances, Pollution control, Precautionary principle, Robustness, Stochastic control, C61, E61, H21, Q28, 1 2008 41 9 Environmental and Resource Economics 25 46 http://hdl.handle.net/10.1007/s10640-007-9179-3 text/html Access to full text is restricted to subscribers. Fidel Gonzalez fidel_gonzalez@shsu.edu
oai:RePEc:kap:enreec:v:4:y:1994:i:3:p:251-2642020-08-08RePEc:kap:enreec
article Recycling of plastics: A materials balance optimisation model At present the volume of solid waste produced in modern consumer societies is increasing, requiring policy measures to reduce the volume of waste to be dumped or incinerated. In this article a materials balance optimisation model for the recycling of plastics is developed to analyse the impact of policy measures that stimulate recycling. The study presents the structure of the optimisation model and it gives the results of a charge imposed on the dumping and incineration of plastics. The calculations show that considerable effort should be made to reach the recycling targets for plastic that have been set by the public authorities for the year 2000. Copyright Kluwer Academic Publishers 1994 Recycling, plastics, waste management, environmental economics, optimisation, materials balance, 3 1994 4 6 Environmental & Resource Economics 251 264 http://hdl.handle.net/10.1007/BF00692327 text/html Access to full text is restricted to subscribers. P. Starreveld Ekko Ierland
oai:RePEc:kap:enreec:v:34:y:2006:i:1:p:7-442020-08-08RePEc:kap:enreec
article Revealing Differences in Willingness to Pay due to the Dimensionality of Stated Choice Designs: An Initial Assessment Stated choice (SC) methods are now a widely accepted data paradigm in the study of the choice responses of agents. Their popularity has spawned an industry of applications in fields as diverse as transportation, environmental science, health economics and policy, marketing, political science and econometrics. With rare exception, empirical studies have used a single SC design, in which the numbers of attributes, alternatives, choice sets, attribute levels and ranges have been fixed across the entire design. As a consequence the opportunity to investigate the influence of design dimensionality on behavioural response has been denied. Accumulated wisdom has promoted a large number of positions on what design features are specifically challenging for respondents; and although a number of studies have assessed the influence of subsets of design dimensions, there exists no single study (that we are aware of) that has systematically varied all of the main dimensions of SC experiments. This paper reports some initial findings on what influences, in aggregate, specific design configurations have on the mean willingness to pay for specific attributes using a Design of Designs (DoD) SC experiment in which the ‘attributes’ of the design are the design dimensions themselves. The design dimensions that are varied are the number of choice sets presented, the number of alternatives in each choice set, the number of attributes per alternative, the number of levels of each attribute and the range of attribute levels. The empirical evidence, using a sample of respondents in Sydney choosing amongst trip attribute bundles for their car commuting trip, suggests that, within the boundaries of design dimensionality investigated, mean estimates of WTP for travel time savings in the aggregate cover a range that is appropriate for reporting a global mean and a set of meaningful values for sensitivity testing in project appraisal and demand prediction. When these aggregated mean estimates are conditioned on all design dimensions we do not find any systematic differences due to specific design dimensions; however when each design dimension is assessed without controlling for the other dimensions we find evidence to support differences in aggregate mean WTP attributable to the number of attributes per alternative and the number of alternatives in a choice set. Copyright Springer 2006 CAPI, choice complexity, design of designs, information processing strategy, stated choice designs, willingness to pay, C91, C81, 1 2006 34 05 Environmental and Resource Economics 7 44 http://hdl.handle.net/10.1007/s10640-005-3782-y text/html Access to full text is restricted to subscribers. David Hensher Davidh@itls.usyd.edu.au
oai:RePEc:kap:enreec:v:58:y:2014:i:2:p:303-3332020-08-08RePEc:kap:enreec
article Do Protected Areas Reduce Forest Fragmentation? A Microlandscapes Approach Conservation policies influence both the amount of habitat loss and patterns of habitat fragmentation. This paper develops a “microlandscapes” approach that combines fragmentation measures with quasi-experimental evaluation methods in order to assess the effects of policy on habitat fragmentation. As an application, the paper estimates whether and to what extent wildlife sanctuaries and national parks in Thailand prevented forest loss and fragmentation. I find that both types of protected areas significantly increased forest cover, average forest patch size and maximum forest patch size. Comparisons between the two types indicate that wildlife sanctuaries were more effective than national parks in terms of protecting forest in the interior versus exterior areas of parks and preventing fragmentation conditional on the level of forest cover. The differences are consistent with predicted differences resulting from spatial patterns of enforcement that are uniform or core-focused in the wildlife sanctuaries versus boundary-focused or include agglomeration penalties in the national parks. Given the greater effectiveness of wildlife sanctuaries in preventing fragmentation and the suggestive link to enforcement types, these results reinforce existing theoretical work urging conservation managers to consider how the spatial distribution of enforcement may affect patterns of resource use. Copyright Springer Science+Business Media Dordrecht 2014 Habitat fragmentation, Land use, Land conservation , Protected areas, Policy evaluation, Q23, Q24, Q56, Q57, 2 2014 58 6 Environmental and Resource Economics 303 333 http://hdl.handle.net/10.1007/s10640-013-9707-2 text/html Access to full text is restricted to subscribers. Katharine Sims ksims@amherst.edu
oai:RePEc:kap:enreec:v:41:y:2008:i:3:p:289-3132020-08-08RePEc:kap:enreec
article Pollution Control and Foreign Direct Investment in Mexico: An Industry-Level Analysis Foreign direct investment, Pollution haven, Mexico, F21, F23, Q38, 3 2008 41 11 Environmental and Resource Economics 289 313 http://hdl.handle.net/10.1007/s10640-008-9192-1 text/html Access to full text is restricted to subscribers. Andreas Waldkirch andreas.waldkirch@colby.edu Munisamy Gopinath m.gopinath@oregonstate.edu
oai:RePEc:kap:enreec:v:55:y:2013:i:1:p:71-862020-08-08RePEc:kap:enreec
article The Role of Stocks and Shocks Concepts in the Debate Over Price Versus Quantity Recent literature showed that the choice between a price or quantity control depends, in part, on the dynamic structure of cost uncertainty. Temporary shocks to abatement cost favors the use of a price control, while permanent shocks favor a quantity control. Unfortunately, the importance of this assumption to the optimal choice has not yet received wide attention among economists. We analyze the regulatory sproblem in an alternative setting and reproduce these results. Our contribution is the simplicity of the model and the accessibility of the results, which reinforce the critical role played by the assumed structure of uncertainty. Copyright The Author(s) 2013 Cap and trade, Permanent shocks, Tax, Transitory shocks, H23, Q28, Q50, Q58, 1 2013 55 5 Environmental and Resource Economics 71 86 http://hdl.handle.net/10.1007/s10640-012-9614-y text/html Access to full text is restricted to subscribers. John Parsons jparsons@mit.edu Luca Taschini l.taschini1@lse.ac.uk
oai:RePEc:kap:enreec:v:14:y:1999:i:2:p:191-2152020-08-08RePEc:kap:enreec
article Renewable Resource Policy When Distributional Impacts Matter The standard assumption in bioeconomic resource models is that optimal policies maximize the present value of economic surplus to society. This assumption implies that regulatory agencies should not be concerned with the distributional consequences of management strategies. Both contemporary welfare-theoretic and rent-seeking approaches suggests distributional issues are important in designing resource management policies. This paper explores resource management when the managing agency has preferences defined over the economic welfare of various groups with a direct economic interest in the use of resources. Policy schemes consistent with this approach are derived and compared with standard results. Copyright Kluwer Academic Publishers 1999 optimal control, policy design, public choice, 2 1999 14 9 Environmental and Resource Economics 191 215 http://hdl.handle.net/10.1023/A:1008359115385 text/html Access to full text is restricted to subscribers. Richard Horan James Shortle Erwin Bulte
oai:RePEc:kap:enreec:v:48:y:2011:i:3:p:451-4852020-08-08RePEc:kap:enreec
article Social Norms and Behavior in the Local Commons as Seen Through the Lens of Field Experiments Laboratory and field experiments, Common-pool resources, Collective action, Regulations, Social norms, C93, D01, H39, H41, Q2, Q56, Q57, 3 2011 48 3 Environmental and Resource Economics 451 485 http://hdl.handle.net/10.1007/s10640-010-9452-8 text/html Access to full text is restricted to subscribers. Juan Cardenas jccarden@uniandes.edu.co
oai:RePEc:kap:enreec:v:15:y:2000:i:3:p:217-2262020-08-08RePEc:kap:enreec
article On the Aggregate Value of Recreational Activities: A Nested Price Index Approach Using Poisson Demand Systems An important consideration in the development ofregulations and policies that administer naturalresources in an area is the value of the non-marketactivities supported by those lands. Little attentionhas been paid to the aggregate value of largegeographic areas. This analysis builds autility-theoretic price index and utilizes this indexto estimate an aggregate Poisson demand to valuebackcountry recreational hiking opportunities innorthern California. Copyright Kluwer Academic Publishers 2000 aggregate demand, aggregate welfare, green accounting, non-market valuation, 3 2000 15 3 Environmental and Resource Economics 217 226 http://hdl.handle.net/10.1023/A:1008396728940 text/html Access to full text is restricted to subscribers. Janet Lutz* Jeffrey Englin J. Shonkwiler
oai:RePEc:kap:enreec:v:8:y:1996:i:1:p:v-vi2020-08-08RePEc:kap:enreec
article In memoriam, Professor K. G. Gofman 1 1996 8 7 Environmental & Resource Economics v v http://hdl.handle.net/10.1007/BF00340649 text/html Access to full text is restricted to subscribers. L. Krechetov
oai:RePEc:kap:enreec:v:48:y:2011:i:1:p:25-412020-08-08RePEc:kap:enreec
article Fees and the Efficiency of Tradable Permit Systems: An Experimental Approach Tradable permits, Taxation, Auctions, Efficiency, Experimental economics, C92, Q22, Q25, 1 2011 48 1 Environmental and Resource Economics 25 41 http://hdl.handle.net/10.1007/s10640-010-9395-0 text/html Access to full text is restricted to subscribers. Fridrik Baldursson fmb@ru.is Jon Sturluson jonthor@ru.is
oai:RePEc:kap:enreec:v:45:y:2010:i:4:p:459-4792020-08-08RePEc:kap:enreec
article Environmental Regulation and Industry Location in Europe Pollution haven hypothesis, Comparative advantage, Industry location, 4 2010 45 4 Environmental and Resource Economics 459 479 http://hdl.handle.net/10.1007/s10640-009-9323-3 text/html Access to full text is restricted to subscribers. Abay Mulatu a.mulatu@londonmet.ac.uk Reyer Gerlagh Dan Rigby Ada Wossink
oai:RePEc:kap:enreec:v:7:y:1996:i:4:p:375-3892020-08-08RePEc:kap:enreec
article Optimal consumption and the environment Choosing between ‘clean’ and ‘dirty’ goods In this paper, a model with heterogeneous consumption goods is presented. Consumers are assumed to choose between two different consumption goods, characterized by a different impact on the environment. This implies that, in a decentralized economy, government can sustain the social optimum by setting two Pigouvian taxes: one on production as a whole and the other on dirty consumption acting as an incentive in favour of clean consumption. In accordance with the previous literature, a trade-off between a clean environment and economic activity evolves. However, this trade-off is now mitigated by the additional taxation on polluting consumption which allows the control of pollution stock evolution through the substitution between clean and dirty commodities. Copyright Kluwer Academic Publishers 1996 pollution control, Pigouvian taxation, heterogeneous consumption goods, 4 1996 7 6 Environmental and Resource Economics 375 389 http://hdl.handle.net/10.1007/BF00369625 text/html Access to full text is restricted to subscribers. Domenico Scalera
oai:RePEc:kap:enreec:v:6:y:1995:i:4:p:341-3582020-08-08RePEc:kap:enreec
article Sustainable development with extractive and non-extractive use of the environment in production This paper considers an economy in which the environment plays a role both in welfare and production. An endogenous growth model, which allows for abatement activities, is formulated in order to study the impact of pollution on welfare and long-term growth. Conditions for optimal and balanced economic growth are discussed and a numerical example is given to provide some insight in the mechanisms at work in the model. Copyright Kluwer Academic Publishers 1995 endogenous growth, sustainable development, environmental quality, 4 1995 6 12 Environmental & Resource Economics 341 358 http://hdl.handle.net/10.1007/BF00691818 text/html Access to full text is restricted to subscribers. F. Butter M. Hofkes
oai:RePEc:kap:enreec:v:48:y:2011:i:4:p:537-5602020-08-08RePEc:kap:enreec
article Eco-Labeling and Market Equilibria with Noisy Certification Tests Asymmetric information, Eco-labeling, Environmental economics, Signaling, Testing, Q5, D8, L15, 4 2011 48 4 Environmental and Resource Economics 537 560 http://hdl.handle.net/10.1007/s10640-010-9402-5 text/html Access to full text is restricted to subscribers. Charles Mason bambuzlr@uwyo.edu
oai:RePEc:kap:enreec:v:65:y:2016:i:1:d:10.1007_s10640-016-0059-62020-08-08RePEc:kap:enreec
article Game Theory and Environmental and Resource Economics—In Honour of Alfred Endres, Part Two 1 2016 65 9 1 Environmental and Resource Economics 1 4 http://link.springer.com/10.1007/s10640-016-0059-6 text/html Abstract Michael Finus University of Bath Bianca Rundshagen Bianca.Rundshagen@fernuni-hagen.de University of Hagen
oai:RePEc:kap:enreec:v:21:y:2002:i:2:p:161-1872020-08-08RePEc:kap:enreec
article Residential Water Demand in the Northwest of Spain A panel of monthly aggregate data from the Northwest of Spain is used to estimate domestic water demand functions under linear and non-linear tariffs. Price, billing, climatic, and sociodemographic variables are used as explanatory variables. The use of intraannual data constitutes a relevant contribution in the European context. Overall marginal price elasticity estimates lie between −0.12 and −0.17. Summer-only elasticities and elasticities associated with uses beyond the effectively free allowances seem significantly higher. Climatic variables significantly affect monthly use, although probably less than in other wealthier and drier areas. Domestic water use appears to be a normal good. Copyright Kluwer Academic Publishers 2002 water demand, water pricing, water resources management, 2 2002 21 2 Environmental and Resource Economics 161 187 http://hdl.handle.net/10.1023/A:1014547616408 text/html Access to full text is restricted to subscribers. R. Martinez-Espiñeira rmespi@stfx.ca
oai:RePEc:kap:enreec:v:61:y:2015:i:4:p:577-5932020-08-08RePEc:kap:enreec
article Environmental Standards and Cournot Duopoly: A Stability Analysis In this paper the dynamic effects of public environmental policies are investigated in a Cournot duopoly with both heterogeneous and homogeneous expectations in a context of limited rationality. It is shown that the increase in upper limits to emissions always tends to destabilise markets and generate a chaotic market dynamics in both cases. The policy implication of this result is that the use of environmental policies may favour market stability. It is also shown that higher costs of abatement technology entail a higher likelihood of stability loss (although in the heterogeneous expectations case also a decrease in costs may destabilise). Copyright Springer Science+Business Media Dordrecht 2015 Environmental policies, Bifurcation, Chaos, Cournot, Oligopoly, Q52, C62, D43, L13, 4 2015 61 8 Environmental and Resource Economics 577 593 http://hdl.handle.net/10.1007/s10640-014-9807-7 text/html Access to full text is restricted to subscribers. Luciano Fanti fanti.luciano@gmail.com
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article Principles for a Global Deal for Limiting the Risks from Climate Change 3 2009 43 7 Environmental and Resource Economics 307 311 http://hdl.handle.net/10.1007/s10640-009-9277-5 text/html Access to full text is restricted to subscribers. Dimitri Zenghelis dzenghel@cisco.com Nicholas Stern
oai:RePEc:kap:enreec:v:44:y:2009:i:1:p:47-702020-08-08RePEc:kap:enreec
article Club Convergence in Carbon Dioxide Emissions Convergence club, Carbon dioxide emissions, Nonlinear time-varying factor model, Relative transition, C23, Q53, 1 2009 44 9 Environmental and Resource Economics 47 70 http://hdl.handle.net/10.1007/s10640-008-9260-6 text/html Access to full text is restricted to subscribers. Ekaterini Panopoulou apano@unipi.gr Theologos Pantelidis
oai:RePEc:kap:enreec:v:30:y:2005:i:4:p:369-3762020-08-08RePEc:kap:enreec
article A Note on Environmental Awareness and Cross-Border Pollution Considering a Nash equilibrium in which a developed country chooses the amount of foreign aid and a developing country sets the emission tax rate and the proportion of the received aid allocated to public abatement of pollution, it is shown that an increase in the recipient country’s environmental awareness will reduce the level of cross-border pollution and benefits the donor though its foreign aid is increased. Copyright Springer 2005 cross-border pollution, emission tax, environmental awareness, foreign aid, public abatement of pollution, 4 2005 30 04 Environmental & Resource Economics 369 376 http://hdl.handle.net/10.1007/s10640-004-4225-x text/html Access to full text is restricted to subscribers. Makoto Hirazawa yakita@sk.tsukuba.ac.jp Akira Yakita
oai:RePEc:kap:enreec:v:8:y:1996:i:1:p:119-1242020-08-08RePEc:kap:enreec
article Nonresponse in Contingent Valuation-reducing uncertainty in value inference This paper focuses on problems associated with nonresponse in Contingent Valuation surveys. The results from a telephone follow-up survey show that value inference can be considerably improved by information on nonrespondents' attitudes. Copyright Kluwer Academic Publishers 1996 nonresponse, value inference, contingent valuation, follow-up surveys, 1 1996 8 7 Environmental & Resource Economics 119 124 http://hdl.handle.net/10.1007/BF00340656 text/html Access to full text is restricted to subscribers. Göran Bostedt Mattias Boman
oai:RePEc:kap:enreec:v:36:y:2007:i:2:p:215-2352020-08-08RePEc:kap:enreec
article A Comparison of Household Recycling Behaviors in Norway and the United States This paper investigates empirically the determinants of household recycling in Norway and compares the results with a similar, recently published, study of households in the United States. The comparison focuses on the relative importance of user fees on waste disposal, community recycling programs, and socioeconomic factors. Both data sources are nationwide, material-specific, and at the household level. One major finding is that a disposal fee provides a significant economic incentive to Norwegian households, whereas its effectiveness in the United States is still up for debate. Providing households with convenient recycling options, such as curbside and drop-off recycling, appears generally effective, but less so in Norway than in the United States. Socioeconomic characteristics are less important predictors of behavior in Norway than in the United States. Qualifications on the comparison are provided throughout and two extensions for future research are suggested at the end. Copyright Springer Science+Business Media, Inc. 2007 community recycling programs, cross-country comparison, environmental policy, household waste management, user fees on waste disposal, 2 2007 36 2 Environmental and Resource Economics 215 235 http://hdl.handle.net/10.1007/s10640-006-9019-x text/html Access to full text is restricted to subscribers. Gorm Kipperberg gorm.kipperberg@colostate.edu
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article The Practice of Environmental and Resource Economics: Introduction 1 2002 22 6 Environmental and Resource Economics 1 2 http://hdl.handle.net/10.1023/A:1015523217076 text/html Access to full text is restricted to subscribers. Richard Carson rcarson@ucsd.edu
oai:RePEc:kap:enreec:v:62:y:2015:i:1:p:1-22020-08-08RePEc:kap:enreec
article EAERE Award for the Best Paper Published in Environmental and Resource Economics During 2014 1 2015 62 9 Environmental and Resource Economics 1 2 http://hdl.handle.net/10.1007/s10640-015-9941-x text/html Access to full text is restricted to subscribers. Ian Bateman I.Bateman@uea.ac.uk Hassan Benchekroun Christian Vossler
oai:RePEc:kap:enreec:v:55:y:2013:i:2:p:245-2552020-08-08RePEc:kap:enreec
article On the Private Provision of Intertemporal Public Goods with Stock Effects The provision of public goods is often hindered by a lack of powerful institutions that can sanction free riders or otherwise enforce private contributions to the public good. The simple deposit based solution introduced by Gerber and Wichardt (J Public Econ 93:429–439, 2009 ) solves this problem, but may require prohibitively large deposits, in particular in the context of intertemporal public goods. In this paper, we propose a modification of the deposit solution that relies only on comparably small deposits. The proposed modification improves the applicability of the procedure, most notably as it also allows to reduce deposits in static public goods problem by transforming them into dynamic ones with small per period contributions. Copyright Springer Science+Business Media Dordrecht 2013 Public goods, Stock effects, Climate-change, Deposits, H41, D02, C72, 2 2013 55 6 Environmental and Resource Economics 245 255 http://hdl.handle.net/10.1007/s10640-012-9624-9 text/html Access to full text is restricted to subscribers. Anke Gerber anke.gerber@wiso.uni-hamburg.de Philipp Wichardt philipp.wichardt@uni-rostock.de
oai:RePEc:kap:enreec:v:51:y:2012:i:2:p:255-2752020-08-08RePEc:kap:enreec
article Foreign Direct Investment, Human Capital and Environmental Pollution in China FDI, Human capital, Pollution haven hypothesis, Environmental pollution, China, 2 2012 51 2 Environmental and Resource Economics 255 275 http://hdl.handle.net/10.1007/s10640-011-9498-2 text/html Access to full text is restricted to subscribers. Jing Lan phd09011@grips.ac.jp Makoto Kakinaka kakinaka@iuj.ac.jp Xianguo Huang phd09008@grips.ac.jp
oai:RePEc:kap:enreec:v:42:y:2009:i:3:p:411-4252020-08-08RePEc:kap:enreec
article Endogenous Minimum Participation in International Environmental Treaties Agreements, Climate, Negotiations, Policy, Participation rule, H0, H4, O3, 3 2009 42 3 Environmental and Resource Economics 411 425 http://hdl.handle.net/10.1007/s10640-009-9264-x text/html Access to full text is restricted to subscribers. Carlo Carraro ccarraro@unive.it Carmen Marchiori Sonia Oreffice sonia@merlin.fae.ua.es
oai:RePEc:kap:enreec:v:44:y:2009:i:4:p:555-5702020-08-08RePEc:kap:enreec
article Re-Examining the Empirical Evidence for Stochastic Convergence of Two Air Pollutants with a Pair-Wise Approach Air pollution, Carbon dioxide, Joint confirmation Hypothesis, Stochastic convergence, Sulfur dioxide, Unit roots, C32, C33, Q53, Q54, 4 2009 44 12 Environmental and Resource Economics 555 570 http://hdl.handle.net/10.1007/s10640-009-9301-9 text/html Access to full text is restricted to subscribers. Myriam Nourry myriam_nourry@yahoo.fr
oai:RePEc:kap:enreec:v:53:y:2012:i:3:p:323-3462020-08-08RePEc:kap:enreec
article Pollution Policy and Trade Liberalization of Environmental Goods During the Doha Round at the World Trade Organization, reductions in trade barriers on environmental goods (EG) were put forward as a means of helping developed and developing countries alike deal with current environmental problems. We examine the potential effectiveness of such a strategy in a developing country that imports all its consumption of EG from an imperfectly competitive foreign eco-industry. We point out that trade liberalization of EG might in fact lead to less stringent pollution taxes, which can result in an actual rise in pollution levels. We then show that the environmental effectiveness objective of this trade reform can be achieved when the regulator uses quantitative abatement standards as an alternative pollution policy instrument. However, this environmental achievement comes at the expense of social welfare. Copyright Springer Science+Business Media B.V. 2012 Eco-industry, Environmental goods, Environmental regulation, Trade and environment, Trade liberalization, F12, F18, H23, Q58, 3 2012 53 11 Environmental and Resource Economics 323 346 http://hdl.handle.net/10.1007/s10640-012-9564-4 text/html Access to full text is restricted to subscribers. Alain-Désiré Nimubona animubon@uwaterloo.ca
oai:RePEc:kap:enreec:v:4:y:1994:i:1:p:75-902020-08-08RePEc:kap:enreec
article Trade, tropical deforestation and policy interventions Trade interventions are increasingly advocated as a means for controlling timber-related tropical deforestation. This paper analyzes the impact on deforestation of such policy instruments in a dynamic framework. The forest is modelled as a potentially renewable resource, and timber is extracted for purposes of export and domestic consumption. Optimality conditions for a variety of model specifications are derived, and the impacts of changes in the terms of trade and market structure on long-run deforestation are analyzed. The results of this analysis suggest that trade interventions that seek to affect the terms of trade against the export of tropical timber products are in the long run a second-best policy option for influencing the deforestation process. Copyright Kluwer Academic Publishers 1994 deforestation, trade interventions, forest stock, tropical timber, large country exporter, 1 1994 4 2 Environmental & Resource Economics 75 90 http://hdl.handle.net/10.1007/BF00691933 text/html Access to full text is restricted to subscribers. Edward Barbier Michael Rauscher
oai:RePEc:kap:enreec:v:4:y:1994:i:1:p:111-1222020-08-08RePEc:kap:enreec
article The biodiversity supergame This paper considers the ability of developed countries to sustain a cooperative agreement to compensate developing countries for the “incremental costs” of biodiversity conservation. It is shown that, depending on certain parameter values and the model specification, such an agreement could only codify the non-cooperative outcome or achieve the full cooperative outcome where global net benefits are maximized. However, where the agreement can sustain the full cooperative outcome, net benefits will be only slightly larger than in the noncooperative outcome. Copyright Kluwer Academic Publishers 1994 Biodiversity, international agreements, supergames, renegotiation-proofness, 1 1994 4 2 Environmental & Resource Economics 111 122 http://hdl.handle.net/10.1007/BF00691935 text/html Access to full text is restricted to subscribers. Scott Barrett
oai:RePEc:kap:enreec:v:45:y:2010:i:2:p:203-2212020-08-08RePEc:kap:enreec
article Can Weak Substitution be Rehabilitated? Revealed preference, Non-market valuation, Weak substitution, Q51, 2 2010 45 2 Environmental and Resource Economics 203 221 http://hdl.handle.net/10.1007/s10640-009-9312-6 text/html Access to full text is restricted to subscribers. V. Smith kerry.smith@asu.edu Mary Evans H. Banzhaf Christine Poulos
oai:RePEc:kap:enreec:v:21:y:2002:i:3:p:285-3002020-08-08RePEc:kap:enreec
article Estimating Willingness to Pay for Improved Drinking Water Quality Using Averting Behavior Method with Perception Measure This paper suggests an application of an averting behaviormethod to reconcile inconsistent public activity with objectiveenvironmental risk. In Korea, an historically polluted watersupply has created citizen resistance to using tap water. Koreansperceive low quality levels for tap water, although objectivelymeasured data show that the pollution levels are lower than theacceptable risk. We hypothesized that the irrational aversion tousing tap water is a consequence of inconsistencies between theobjectively measured and perceived pollution levels. We introducethe perception averting behavior method, in which we add aperception measure unit to the conventional averting behaviormethod. We found that the perception measure provided a validexplanation for citizens' aversion to using tap water in Korea. Copyright Kluwer Academic Publishers 2002 drinking water, perception and behavior, risk, tap water, 3 2002 21 3 Environmental and Resource Economics 285 300 http://hdl.handle.net/10.1023/A:1014537330423 text/html Access to full text is restricted to subscribers. Mi-Jung Um Seung-Jun Kwak Tai-Yoo Kim
oai:RePEc:kap:enreec:v:2:y:1992:i:6:p:615-6342020-08-08RePEc:kap:enreec
article Supply and demand factors of Cleaner technologies: Some empirical evidence This article identifies and analyzes factors that affect the willingness of firms and consumers to develop and adopt cleaner technologies. “Cleaner technologies” is used as a general term for pollution abatement technologies, re-use systems, and environmentally sound consumer products and materials. The article also contains the findings of three case studies on cleaner technologies (CFC substitutes, low-solvent paints and coatings, and membrane technology), in which the importance of the identified factors is investigated. From the case studies some general conclusions are drawn about these factors, and the way in which policy instruments can be used to stimulate innovation in and diffusion of cleaner technologies. No single policy instrument is considered to be optimal. Instead a policy mix is needed, involving a much wider use of economic instruments. Copyright Kluwer Academic Publishers 1992 Cleaner technologies, environmental policy, economic instruments, efficiency, innovation, diffusion, 6 1992 2 11 Environmental & Resource Economics 615 634 http://hdl.handle.net/10.1007/BF00330287 text/html Access to full text is restricted to subscribers. René Kemp Xander Olsthoorn Frans Oosterhuis Harmen Verbruggen
oai:RePEc:kap:enreec:v:41:y:2008:i:3:p:347-3612020-08-08RePEc:kap:enreec
article Abuse of EU Emissions Trading for Tacit Collusion Emissions trading, Tacit collusion, Market power, Competition laws, European emissions trading law, K23, L13, Q28, 3 2008 41 11 Environmental and Resource Economics 347 361 http://hdl.handle.net/10.1007/s10640-008-9195-y text/html Access to full text is restricted to subscribers. Karl-Martin Ehrhart ehrhart@wiwi.uni-karlsruhe.de Christian Hoppe hoppe@wiwi.uni-karlsruhe.de Ralf Löschel loeschel@wiwi.uni-karlsruhe.de
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article Introduction 2 2005 31 06 Environmental & Resource Economics 121 121 http://hdl.handle.net/10.1007/s10640-005-1759-5 text/html Access to full text is restricted to subscribers. John List Matti Liski
oai:RePEc:kap:enreec:v:29:y:2004:i:3:p:285-2942020-08-08RePEc:kap:enreec
article Laboratory Testbeds and Non-Market Valuation: The Case of Bidding Behavior in a Second-Price Auction with an Outside Option Researchers now use the lab to examine the behavioral underpinnings of valuation before the field application which some argue has less experimental control. But lab valuation work raises its own set of concerns when it uses private goods to explore non-market valuation behavior because private goods have substitutes often unaccounted for in the lab. Therefore, the lab as a tool to testbed field valuation work may be limited. Herein we design an induced valuation experiment to explore bidding behavior in a second-price auction with an outside option that is a perfect substitute for the auction commodity. Theory predicts that rational bidders will consider the prices of outside options when formulating bidding strategies, and will reduce their bids whenever their resale value exceeds the price of the outside option. Our results suggest that bidders account for outside options when formulating bids with behavior following comparative static predictions. In addition, we provide evidence concerning hypothetical versus actual behavior with induced values – the data suggesting a hypothetical bias in the level of bids but not in bid shaving. Copyright Kluwer Academic Publishers 2004 bidding behavior, experiments, outside option, valuation, 3 2004 29 11 Environmental and Resource Economics 285 294 http://hdl.handle.net/10.1007/s10640-004-5264-z text/html Access to full text is restricted to subscribers. Todd Cherry Peter Frykblom Jason Shogren John List Melonie Sullivan
oai:RePEc:kap:enreec:v:30:y:2005:i:3:p:259-2782020-08-08RePEc:kap:enreec
article Efficient Policies for Green Design in a Vintage Durable Good Model Using a dynamic durable good model, we investigate efficiency-restoring policy schemes in case of free garbage disposal. In the long-run, efficiency is attained by a subsidy on recyclability of the durable and a tax on the purchase of the durable. On the short-run adjustment path, in contrast, both policy instruments may change their signs such that the government harms recyclability by taxing it and promotes the demand for the durable good by subsidizing it. A deposit--refund system is shown to yield the efficient allocation both in the short-run as well as in the long-run. Copyright Springer 2005 durable good, efficient taxation, recyclability, vintage, 3 2005 30 03 Environmental & Resource Economics 259 278 http://hdl.handle.net/10.1007/s10640-004-2302-9 text/html Access to full text is restricted to subscribers. Thomas Eichner eichner@vwl.wiwi.uni-siegen.de Marco Runkel
oai:RePEc:kap:enreec:v:42:y:2009:i:2:p:169-1862020-08-08RePEc:kap:enreec
article Proportionality of Willingness to Pay to Small Changes in Risk: The Impact of Attitudinal Factors in Scope Tests Contingent valuation, Willingness to pay, Scope test, Sensitivity of WTP, D81, J17, Q54, 2 2009 42 2 Environmental and Resource Economics 169 186 http://hdl.handle.net/10.1007/s10640-008-9214-z text/html Access to full text is restricted to subscribers. Andrea Leiter andrea.leiter@uibk.ac.at Gerald Pruckner gerald.pruckner@jku.at
oai:RePEc:kap:enreec:v:36:y:2007:i:3:p:295-3112020-08-08RePEc:kap:enreec
article Are More Innovative Firms Less Vulnerable to New Environmental Regulation? Compliance with pollution limits and standards requires firms to implement adaptation processes that are not only costly themselves but also affect future profits in as much as they modify production systems and methods. This paper attempts to respond to the question of how technological knowledge moderates the effect that the implementation of a new environmental regulation has on the results of affected firms. The regulation selected for this study is the Integrated Pollution Prevention and Control Act (IPPC). A Multivariate Regression Model (MVRM) has been applied to the regulatory event. The most important implication of this paper is that technological knowledge prepares a firm for adapting to a greater environmental demand such as may be derived from a new regulation. Copyright Springer Science+Business Media, Inc. 2007 environmental regulation, market value, technological knowledge, 3 2007 36 3 Environmental and Resource Economics 295 311 http://hdl.handle.net/10.1007/s10640-006-9023-1 text/html Access to full text is restricted to subscribers. Joaquín Cañón-de-Francia jcanon@unizar.es Concepción Garcés-Ayerbe Marisa Ramírez-Alesón
oai:RePEc:kap:enreec:v:16:y:2000:i:1:p:51-682020-08-08RePEc:kap:enreec
article Complements, Substitutes, Budget Constraints and Valuation This study employs a multi-program contingent valuation (CVM) design tosimultaneously assess the value of three ecosystem conservation programsin Alberta, Canada. The design is different from most other CVM designsand has several different features including the natural incorporation ofdirect reminders of substitute/complementary programs and budgetconstraints. In contrast to the findings of other studies, two of the environmentalprograms appear to be complements and other combinations of the programssuggest an absence of substitution effects. The multi-program model ismore informative and robust in terms of theoretical validity and expectedrelationships with demographic and recreational characteristics of therespondents. Copyright Kluwer Academic Publishers 2000 contingent valuation, endangered species, environmental valuation, multi-program, 1 2000 16 5 Environmental and Resource Economics 51 68 http://hdl.handle.net/10.1023/A:1008328920083 text/html Access to full text is restricted to subscribers. Atakelty Hailu Wiktor Adamowicz Peter Boxall
oai:RePEc:kap:enreec:v:55:y:2013:i:3:p:309-3362020-08-08RePEc:kap:enreec
article A Tradable Permit System in an Intertemporal Economy It is known that in an intertemporal competitive economy, a tradable permit system may not achieve efficiency without setting appropriate permit interest rates (i.e., rewards for holding permits). To find the rates, however, we need to know in advance the path of efficient permit prices, which is difficult to obtain. This study intends to solve this problem in two ways. First, we analyze a special case in which the permit interest rates are given by a simple rule. For example, if the marginal abatement cost of pollution emission is constant, then the appropriate rate is to equal the monetary interest rate. As is the case for global warming, if the damage is caused in the future far beyond the planning period of the environmental program, the appropriate rate coincides with the marginal self-recovery of environmental stock under certain conditions. As a second approach, we propose a tradable permit system with a permit bank, as a mechanism by which the permit interest rates are generated endogenously without governmental intervention other than the issuance of permits. However, we also show that this approach raises the problem of indeterminacy of the equilibrium. Copyright Springer Science+Business Media Dordrecht 2013 Tradable permit system, General equilibrium, Permit interest rate, Permit bank, Indeterminacy, H23, K32, Q58, 3 2013 55 7 Environmental and Resource Economics 309 336 http://hdl.handle.net/10.1007/s10640-012-9628-5 text/html Access to full text is restricted to subscribers. Ken-Ichi Akao akao@waseda.jp Shunsuke Managi managi.s@gmail.com
oai:RePEc:kap:enreec:v:51:y:2012:i:1:p:161-1612020-08-08RePEc:kap:enreec
article Erratum to: Loss Aversion and Individual Characteristics 1 2012 51 1 Environmental and Resource Economics 161 161 http://hdl.handle.net/10.1007/s10640-011-9460-3 text/html Access to full text is restricted to subscribers. Katrine Hjorth khj@transport.dtu.dk Mogens Fosgerau
oai:RePEc:kap:enreec:v:19:y:2001:i:2:p:113-1292020-08-08RePEc:kap:enreec
article Estimates of the Economic Effects of Sea Level Rise Regional estimates of direct cost (DC) are commonly used to measure the economic damages of sea level rise. Such estimates suffer from three limitations:(i) values of threatened endowments are not well known, (ii) loss of endowments does not affect consumer prices, and (iii) international trade is disregarded. Results in this paper indicate that these limitations can significantly affect economic assessments of sea level rise. Current uncertainty regarding endowment values (as reflected in two alternative data sets), for example, leads to a 17 percent difference in coastal protection, a 36 percent difference in the amount of land protected, and a 36 percent difference in DC globally. Also, global losses in equivalent variation (EV), a welfare measure that accounts for price changes, are 13 percent higher than DC estimates. Regional EV losses may be up to 10 percent lower than regional DC, however, because international trade tends to redistribute losses from regions with relatively high damages to regions with relatively low damages. Copyright Kluwer Academic Publishers 2001 direct cost, economic impacts, equivalent variation, sea level rise, 2 2001 19 6 Environmental and Resource Economics 113 129 http://hdl.handle.net/10.1023/A:1011136417375 text/html Access to full text is restricted to subscribers. Roy Darwin Richard Tol
oai:RePEc:kap:enreec:v:47:y:2010:i:3:p:423-4372020-08-08RePEc:kap:enreec
article Wasting Time? Recycling Incentives in Urban Taiwan and Japan Solid waste, Recycling, Illegal dumping, Waste disposal costs, 3 2010 47 11 Environmental and Resource Economics 423 437 http://hdl.handle.net/10.1007/s10640-010-9386-1 text/html Access to full text is restricted to subscribers. Yen-Lien Kuo yenlien@gmail.com Charles Perrings Charles.Perrngs@asu.edu
oai:RePEc:kap:enreec:v:62:y:2015:i:3:p:637-6562020-08-08RePEc:kap:enreec
article Addressing Preference Heterogeneity, Multiple Scales and Attribute Attendance with a Correlated Finite Mixing Model of Tap Water Choice Unobserved heterogeneity of error scale in choice models is a recent extension of the better investigated issue of heterogeneity of taste intensity. It is achieved by fitting choice panel data with specifications that simultaneously handle inter-personal variation in scale and taste. The aim is to separate differences in preference intensities across respondents from differences in the degree of consistency in choice behaviour, or ‘preference discrimination’, while accounting for correlation between the two. Another recent substantive issue in choice data analysis is attribute non-attendance. We develop a finite mixing model to address simultaneously the three issues above. We empirically prove the concept on stated preference data related to tap water attributes in a study for industry regulation. Copyright Springer Science+Business Media Dordrecht 2015 Water quality attributes, Choice experiments, Latent class, Preference heterogeneity, Scale parameter, Attribute processing rules, H41, Q25, Q51, 3 2015 62 11 Environmental and Resource Economics 637 656 http://hdl.handle.net/10.1007/s10640-014-9838-0 text/html Access to full text is restricted to subscribers. Mara Thiene mara.thiene@unipd.it Riccardo Scarpa rscarpa@waikato.ac.nz Jordan Louviere jordan.louviere@unisa.edu.au
oai:RePEc:kap:enreec:v:19:y:2001:i:2:p:97-1122020-08-08RePEc:kap:enreec
article Global Warming and German Agriculture Impact Estimations Using a Restricted Profit Function This study uses the concept of shadow prices formeasuring the impacts of climate change. By estimatinga restricted profit function rather than a cost or aproduction function the explanatory power of the modelis increased because of an endogenous outputstructure. Using low aggregated panel data on WesternGerman farmers, the results imply that the agricultural production process is significantly influenced by climate conditions. Simulation results using a 2 ×CO 2 climate scenario show positive impactsfor all regions in Germany. Interestingly, the spatialdistribution of the gains is indicating no advantagefor those regions, which currently suffer frominsufficient temperature. Finally, the importance ofan endogenous output structure is confirmed by thefinding that the desired product mix will drasticallychange. Copyright Kluwer Academic Publishers 2001 agriculture, climate change, environmental valuation, global warming, impact study, restricted profit function, 2 2001 19 6 Environmental and Resource Economics 97 112 http://hdl.handle.net/10.1023/A:1011178931639 text/html Access to full text is restricted to subscribers. Günter Lang guenter.lang@wiso.uni-augsburg.de
oai:RePEc:kap:enreec:v:4:y:1994:i:6:p:545-5532020-08-08RePEc:kap:enreec
article On the possibility of attaining environmental and trade objectives simultaneously With the greening of political debate around the world, large nations — precluded from using trade instruments explicitly — have become aware of the fact that they can manipulate their domestic tax structure to attain environmental and trade objectives simultaneously. In this note we show how such nations can attain these two targets with one instrument. Specifically, we show how to construct dual purpose taxes. We then focus on the empirical determinants of these taxes. Copyright Kluwer Academic Publishers 1994 Optimal, taxation, externality, international, trade, 6 1994 4 12 Environmental & Resource Economics 545 553 http://hdl.handle.net/10.1007/BF00693045 text/html Access to full text is restricted to subscribers. Amitrajeet Batabyal
oai:RePEc:kap:enreec:v:12:y:1998:i:3:p:357-3742020-08-08RePEc:kap:enreec
article Testing Temporal Reliability and Carry-over Effect: The Role of Correlated Responses in Test-retest Reliability Studies Test-retest studies help establish the reliability of contingent valuation (CV) responses but must confront the problem that the initial response may influence subsequent responses, and thus weaken conclusions. We develop a model that tests the influence of heterogeneous preferences and previous responses. By estimating a model of sportfishing, we show that correlation between answers to a CV question is induced by heterogeneous preferences. Copyright Kluwer Academic Publishers 1998 contingent raluation, test-retest, correlated responses, 3 1998 12 10 Environmental and Resource Economics 357 374 http://hdl.handle.net/10.1023/A:1008264922331 text/html Access to full text is restricted to subscribers. K. McConnell* tedm@arec.umd.edu I. Strand Sebastián Valdés
oai:RePEc:kap:enreec:v:62:y:2015:i:4:p:769-7902020-08-08RePEc:kap:enreec
article Investment and Adaptation as Commitment Devices in Climate Politics The strategic roles of adaptation and technological investment in international climate politics have been analyzed within various approaches. What makes this paper unique is that we investigate the combined impact of adaptation and investment on global mitigation and we compare the subgame-perfect equilibria for different sequences of decisions. Considering a purely non-cooperative, game-theoretic framework, we find that by investment countries commit to lower national contributions to the global public good of mitigation. Moreover, the order of adaptation before mitigation might reinforce this strategic effect of technological investments. As a consequence, the subgame-perfect equilibrium for symmetric countries yields a globally lower level of mitigation, and higher global costs of climate change when countries engage in advanced adaptation. Besides this theoretical contribution, the paper proposes some strategies to combat the unfortunate ‘rush to adaptation’ which can be currently observed in climate politics. Copyright Springer Science+Business Media Dordrecht 2015 Adaptation, Climate policy, Investment, Mitigation, Non-cooperative behavior, Q54, H41, H87, C72, 4 2015 62 12 Environmental and Resource Economics 769 790 http://hdl.handle.net/10.1007/s10640-015-9887-z text/html Access to full text is restricted to subscribers. Clemens Heuson Wolfgang Peters Reimund Schwarze Anna-Katharina Topp topp@europa-uni.de
oai:RePEc:kap:enreec:v:60:y:2015:i:4:p:549-5782020-08-08RePEc:kap:enreec
article Testing the Pollution Haven Effect: Does the Type of FDI Matter? Many studies have tested the pollution haven effect (PHE) which predicts that the tightening of local environmental regulations would shift foreign direct investment (FDI) to less regulated jurisdictions. However, most of them ignored the heterogeneity of FDI. This paper studies the PHE on local-market-oriented and export-oriented FDI and tests whether the two types have different responsiveness to environmental regulations in a host country. A simple model is developed to describe how different types of multinational companies respond in distinct ways to stricter environmental policies in host countries. Using US outward FDI data for 50 host countries and a survey measure of both the stringency and the enforcement of local environmental regulations, I find a significant deterrent effect of local environmental regulations on inward FDI. Furthermore, FDI in a host country is not only affected by local environmental regulations but also by environmental regulations in proximate countries. More importantly, accounting for the relative stringency of environmental regulations between a host country and the United States is critical for identifying a PHE. I find a significantly stronger effect of environmental policies on both types of FDI in host countries with environmental regulations that are stricter than those in the United States. In these countries, export-oriented FDI also exhibits a greater sensitivity to local environmental regulations than local market-oriented FDI. Copyright Springer Science+Business Media Dordrecht 2015 Pollution haven effect, Types of FDI, Heterogenous sensitivities, Nonlinear effect, 4 2015 60 4 Environmental and Resource Economics 549 578 http://hdl.handle.net/10.1007/s10640-014-9779-7 text/html Access to full text is restricted to subscribers. Jitao Tang jitao.tang@ey.com
oai:RePEc:kap:enreec:v:62:y:2015:i:4:p:665-6882020-08-08RePEc:kap:enreec
article Hope or Despair? Formal Models of Climate Cooperation We review formal (and some more informal) models of climate cooperation derived from economics and political science. These models convey two main messages. On one hand, they suggest that the prospects for effective climate cooperation are bleak: The standard view is that stable coalitions are small and that renegotiation-proof equilibria require that only a few countries participate. On the other hand, there might be light at the end of the tunnel after all. First, more recent work suggests that larger coalitions can be made stable. Second, other recent work suggests that it may be possible to design a renegotiation-proof climate agreement with broad or even full participation. Third, deposit-refund systems might help solve some of the obstacles for effective climate cooperation. Fourth, although the “law of the least ambitious program” pinpoints severe constraints on effective cooperation, this law has its limits. Fifth, countries may use cooperative probes to build trust. Sixth, cooperation might emerge in a completely decentralized fashion. Finally, experiments indicate that some of the conditions for effective cooperation that are taken for granted in most formal models might in fact be overly strict. Copyright Springer Science+Business Media Dordrecht 2015 Climate change, Game-theory, Collective action, International agreements, Participation, Compliance, 4 2015 62 12 Environmental and Resource Economics 665 688 http://hdl.handle.net/10.1007/s10640-014-9799-3 text/html Access to full text is restricted to subscribers. Jon Hovi jon.hovi@stv.uio.no Hugh Ward hugh@essex.ac.uk Frank Grundig F.Grundig@kent.ac.uk
oai:RePEc:kap:enreec:v:32:y:2005:i:2:p:241-2712020-08-08RePEc:kap:enreec
article Individual and Collective Choice and Voting in Common Pool Resource Problem with Heterogeneous Actors In this paper we investigate the effects of heterogeneity in common pool resource (CPR) problems. We examine whether heterogeneity impedes or facilitates coordination on an efficient use of a CPR by proposing and voting on allocation schemes. In a full information design we compare extractions and voting behavior in heterogeneous and homogeneous groups. If the CPR is extracted individually, we find no difference in efficiency between heterogeneous and homogeneous groups. However, when groups can vote on allocation schemes, homogeneous groups are more likely to reach an efficient agreement than heterogeneous groups. Copyright Springer 2005 common pool resources, experiment, heterogeneity, voting, C91, C92, D70, D74, H41, 2 2005 32 10 Environmental & Resource Economics 241 271 http://hdl.handle.net/10.1007/s10640-005-3359-9 text/html Access to full text is restricted to subscribers. Magdalena Margreiter Magdalena.margreiter@uibk.ac.at Matthias Sutter Dennis Dittrich
oai:RePEc:kap:enreec:v:45:y:2010:i:2:p:283-3182020-08-08RePEc:kap:enreec
article Sources of Mistrust: An Experimental Case Study of a Central Asian Water Conflict Central Asia, Common-pool resources, Dams, Hydropower, Irrigation, Experimental economics, Regional public goods, Syr Darya, Trust games, Water, C72, C92, O53, Q25, 2 2010 45 2 Environmental and Resource Economics 283 318 http://hdl.handle.net/10.1007/s10640-009-9316-2 text/html Access to full text is restricted to subscribers. Klaus Abbink k.abbink@uva.nl Lars Moller lmoller@worldbank.org Sarah O’Hara
oai:RePEc:kap:enreec:v:51:y:2012:i:3:p:391-4112020-08-08RePEc:kap:enreec
article Climate Policy, Learning, and Technology Adoption in Small Countries Abatement technology, Auctioned permits, Emission standards, Harmonized taxes, International environmental agreements, Learning, Small countries, Q54, Q55, Q58, 3 2012 51 3 Environmental and Resource Economics 391 411 http://hdl.handle.net/10.1007/s10640-011-9504-8 text/html Access to full text is restricted to subscribers. Fuhai Hong hong.fuhai@mail.shufe.edu.cn Susheng Wang
oai:RePEc:kap:enreec:v:57:y:2014:i:2:p:175-1962020-08-08RePEc:kap:enreec
article The Amenity Value of English Nature: A Hedonic Price Approach Using a hedonic property price approach, we estimate the amenity value associated with proximity to habitats, designated areas, domestic gardens and other natural amenities in England. There is a long tradition of studies looking at the effect of environmental amenities and disamenities on property prices. But, to our knowledge, this is the first nationwide study of the value of proximity to a large number of natural amenities in England. We analysed 1 million housing transactions over 1996–2008 and considered a large number of environmental characteristics. Results reveal that the effects of many of these environmental variables are highly statistically significant, and are quite large in economic magnitude. Gardens, green space and areas of water within the census ward all attract a considerable positive price premium. There is also a strong positive effect from freshwater and flood plain locations, broadleaved woodland, coniferous woodland and enclosed farmland. Increasing distance to natural amenities such as rivers, National Parks and National Trust sites is unambiguously associated with a fall in house prices. Our preferred regression specifications control for unobserved labour market and other geographical factors using Travel to Work Area fixed effects, and the estimates are fairly insensitive to changes in specification and sample. This provides some reassurance that the hedonic price results provide a useful representation of the values attached to proximity to environmental amenities in England. Overall, we conclude that the housing market in England reveals substantial amenity value attached to a number of habitats, designations, private gardens and local environmental amenities. Copyright Springer Science+Business Media Dordrecht 2014 Amenity value, Hedonic price method (HPM), Environmental amenities, 2 2014 57 2 Environmental and Resource Economics 175 196 http://hdl.handle.net/10.1007/s10640-013-9664-9 text/html Access to full text is restricted to subscribers. Stephen Gibbons Susana Mourato s.mourato@lse.ac.uk Guilherme Resende
oai:RePEc:kap:enreec:v:45:y:2010:i:2:p:183-2022020-08-08RePEc:kap:enreec
article Incorporating Resilience in the Assessment of Inclusive Wealth: An Example from South East Australia Inclusive wealth, Resilience, Shadow prices, Sustainable development, 2 2010 45 2 Environmental and Resource Economics 183 202 http://hdl.handle.net/10.1007/s10640-009-9311-7 text/html Access to full text is restricted to subscribers. Brian Walker Brian.Walker@csiro.au Leonie Pearson Michael Harris Karl-Göran Maler Chuan-Zhong Li Reinette Biggs Tim Baynes
oai:RePEc:kap:enreec:v:56:y:2013:i:2:p:161-1762020-08-08RePEc:kap:enreec
article Optimal Climate Change Policies When Governments Cannot Commit We analyse the optimal design of climate change policies when a government wants to encourage the private sector to undertake significant immediate investment in developing cleaner technologies, but the relevant carbon taxes (or other environmental policies) that would incentivise such investment by firms will be set in the future. We assume that the current government cannot commit to long-term carbon taxes, and so both it and the private sector face the possibility that the government in power in the future may give different (relative) weight to environmental damage costs. We show that this lack of commitment has a significant asymmetric effect: it increases the social benefits of the current government to have the investment undertaken, but reduces the private benefit to the private sector to invest. Consequently the current government may need to use additional policy instruments—such as R&D subsidies—to stimulate the required investment. Copyright Springer Science+Business Media Dordrecht 2013 Climate change, Emissions taxes, Impact on R&D, Timing and commitment, H23, Q54, Q55, Q58, 2 2013 56 10 Environmental and Resource Economics 161 176 http://hdl.handle.net/10.1007/s10640-013-9682-7 text/html Access to full text is restricted to subscribers. Alistair Ulph alistair.ulph@manchester.ac.uk David Ulph du1@st-andrews.ac.uk
oai:RePEc:kap:enreec:v:39:y:2008:i:1:p:17-242020-08-08RePEc:kap:enreec
article Sustainable Development and Resilience in Ecosystems Sustainable development, Wealth, Accounting prices, Non convex dynamics, Resilience, 1 2008 39 1 Environmental and Resource Economics 17 24 http://hdl.handle.net/10.1007/s10640-007-9175-7 text/html Access to full text is restricted to subscribers. Karl-Göran Mäler karl@beijer.kva.se
oai:RePEc:kap:enreec:v:51:y:2012:i:1:p:79-1042020-08-08RePEc:kap:enreec
article Regulation of a Spatial Externality: Refuges versus Tax for Managing Pest Resistance Pest resistance, Pesticides, Transgenic crop, Tax, Refuge, Spatial, Externalities, Q16, Q18, D62, 1 2012 51 1 Environmental and Resource Economics 79 104 http://hdl.handle.net/10.1007/s10640-011-9489-3 text/html Access to full text is restricted to subscribers. Stefan Ambec stefan.ambec@toulouse.inra.fr Marion Desquilbet Marion.Desquilbet@toulouse.inra.fr
oai:RePEc:kap:enreec:v:45:y:2010:i:4:p:573-5962020-08-08RePEc:kap:enreec
article Renegotiations in the Greenhouse International climate agreements, Self-enforcing international environmental agreements, STACO model, Coalition formation with renegotiation, C73, D74, Q54, 4 2010 45 4 Environmental and Resource Economics 573 596 http://hdl.handle.net/10.1007/s10640-009-9329-x text/html Access to full text is restricted to subscribers. Hans-Peter Weikard hans-peter.weikard@wur.nl Rob Dellink Ekko Ierland
oai:RePEc:kap:enreec:v:62:y:2015:i:3:p:615-6352020-08-08RePEc:kap:enreec
article Endogenous Growth with a Ceiling on the Stock of Pollution The effects of an agreement such as the Kyoto Protocol, which implicitly imposes a ceiling on the stock of pollution, have recently been studied in Hotelling models. We add pollution and a ceiling to the endogenous growth model of Tsur and Zemel (J Environ Econ Manag 49(3):484–499, 2005 ) to study the effects of the ceiling (and pollution) on capital and research investments. In the short run, the ceiling adds an additional scarcity to the one induced by the limited fossil fuel stock. Ceteris paribus, the extraction rate of cheap fossil fuel is reduced and backstop utilization boosted. This increases energy costs (energy cost effect) and makes R&D more beneficial compared with capital accumulation (research effect). R&D investments may increase, depending on capital endowment and the strength of the two effects. The sum of R&D and capital investments is affected, as both effects change disposable production. In the long-run, i.e. after the exhaustion of limited resources, the shape of the evolution path can be only affected by the ceiling, if the capital endowment is sufficiently large. Copyright Springer Science+Business Media Dordrecht 2015 Endogenous growth, Environmental agreements, Fossil fuels, Nonrenewable resources, Research and development, 3 2015 62 11 Environmental and Resource Economics 615 635 http://hdl.handle.net/10.1007/s10640-014-9832-6 text/html Access to full text is restricted to subscribers. Gilbert Kollenbach Gilbert.Kollenbach@Fernuni-Hagen.de
oai:RePEc:kap:enreec:v:44:y:2009:i:3:p:327-3352020-08-08RePEc:kap:enreec
article Modeling the Demand for Sicilian Regional Parks: A Compound Poisson Approach Incomplete demand system, Compound poisson, Count model, Travel cost, Q26, C35, 3 2009 44 11 Environmental and Resource Economics 327 335 http://hdl.handle.net/10.1007/s10640-009-9288-2 text/html Access to full text is restricted to subscribers. Giovanni Signorello g.signorello@unict.it Jeffrey Englin englin@unr.edu Adam Longhorn Maria Salvo mdesalvo@unict.it
oai:RePEc:kap:enreec:v:42:y:2009:i:4:p:491-5082020-08-08RePEc:kap:enreec
article Self-enforcing International Environmental Agreements with Costly Monitoring for Compliance International environmental agreements, Self-enforcing agreements, Compliance, Monitoring, Q5, H41, C72, F53, 4 2009 42 4 Environmental and Resource Economics 491 508 http://hdl.handle.net/10.1007/s10640-008-9220-1 text/html Access to full text is restricted to subscribers. David McEvoy mcevoydm@appstate.edu John Stranlund stranlund@resecon.umass.edu
oai:RePEc:kap:enreec:v:10:y:1997:i:2:p:147-1652020-08-08RePEc:kap:enreec
article Cooperative and Non-Cooperative Exploitation of the Arcto-Norwegian Cod Stock A two-agent model for the exploitation of the Arcto-Norwegian cod stock is developed to investigate the economic benefits that can be realized from the resource, and the effect of exploitation on stock sustainability under cooperation and non-cooperation. The two agents are identified in this study as a trawl fishery versus a coastal fishery. Unlike in Munro (1979), where conflicts in the management strategies of agents arise from differences in the perceptions of the discount factor, fishing effort costs, and consumer preferences, here conflicts arise mainly from the differences in fishing gear and grounds, and the age group of cod targeted by the two agents. Using a game theoretic framework, we show that given available data, the optimum optimorum is obtained under cooperation with side payments and no predetermined harvest shares, in which case the coastal fishery buys out the trawl fishery. However, sensitivity analysis shows that if the price premium assumed for mature cod is taken away, the trawl fishery takes over as the producer of the optimum optimorum. Copyright Kluwer Academic Publishers 1997 game theory, cooperative, non-cooperative, fishery resources, coastal vessels, cod, trawlers, Norway, 2 1997 10 9 Environmental and Resource Economics 147 165 http://hdl.handle.net/10.1023/A:1026459309123 text/html Access to full text is restricted to subscribers. Ussif Sumaila
oai:RePEc:kap:enreec:v:48:y:2011:i:3:p:435-4492020-08-08RePEc:kap:enreec
article Overreaction to Fearsome Risks Action bias, Availability bias, Biased assessment, Risk regulation, Risk perception, D81, Q51, D61, H4, 3 2011 48 3 Environmental and Resource Economics 435 449 http://hdl.handle.net/10.1007/s10640-010-9449-3 text/html Access to full text is restricted to subscribers. Cass Sunstein Richard Zeckhauser richard_zeckhauser@harvard.edu
oai:RePEc:kap:enreec:v:12:y:1998:i:4:p:457-4782020-08-08RePEc:kap:enreec
article Measuring Passive Use Value: Pledges, Donations and CV Responses in Connection with an Important Natural Resource This paper examines monetary valuations of lost passive-use benefits associated with damage to a unique environmental resource – a national park, elicited through contingent valuation, and compares them with actual donations to the same end, where the latter are interpreted as a quasi-market expression of willingness to pay for non-market resource services. The relationships between the two valuation approaches were investigated in the specific context of an environmental episode which damaged a unique natural endowment, Israel's Carmel National Park. The empirical analysis is based on data from two sample surveys; one sample was drawn from the population of people who either pledged or pledged and donated during a fund-raising campaign following the episode, with the proceeds dedicated to rehabilitation or prevention of future episodes; the second sample was drawn from the general population of the country. The results cannot be interpreted as providing unqualified support for the reliability of contingent valuation as a means for obtaining passive use values. Copyright Kluwer Academic Publishers 1998 passive-use benefits, existence value, CVM, donations, quasi-market valuations, JEL Classification: Q20, Q24, Q26, 4 1998 12 12 Environmental and Resource Economics 457 478 http://hdl.handle.net/10.1023/A:1008397411466 text/html Access to full text is restricted to subscribers. M. Shechter shechter@econ.haifa.ac.il B. Reiser N. Zaitsev
oai:RePEc:kap:enreec:v:37:y:2007:i:4:p:621-6422020-08-08RePEc:kap:enreec
article International trade and renewable resources under asymmetries of resource abundance and resource management This paper examines the interaction between relative resource abundance and resource management regimes in determining trade patterns and gains from trade in a two-country model with a renewable resource. A model developed by Brander and Taylor [Brander JA, Taylor MS (1997b) Resour Energy Econ 19:267–297] is extended. It is shown that relative resource abundance determines trade patterns if resource abundance is similar in both countries and the relative demand for the resource good is moderate, or if resource abundance is sufficiently different and the relative demand is not so high. Otherwise, a difference in resource management regimes determines trade patterns. Even under an open-access regime, the resource-scarce country gains from trade unless resource abundance is similar and the relative demand is low. Copyright Springer Science+Business Media, Inc. 2007 International trade, Open access, Relative resource abundance, Renewable resources, Resource management regime, F10, Q20, 4 2007 37 8 Environmental and Resource Economics 621 642 http://hdl.handle.net/10.1007/s10640-007-9080-0 text/html Access to full text is restricted to subscribers. Naoto Jinji jinji@e.okayama-u.ac.jp
oai:RePEc:kap:enreec:v:19:y:2001:i:4:p:329-3412020-08-08RePEc:kap:enreec
article National Accounting with Natural and Other Types of Capital We do double-entry national accounting and incorporate zero profit arbitrageconditions (Euler equations) for different types of capital, includingnatural capital. In non-balanced growth, capital gains terms for capitalgoods appear in the income side of the accounts. Depreciation terms appearon the product or expenditure side. We consider renewable natural capital aswell as non-renewable of both durable and non-durable types. Copyright Kluwer Academic Publishers 2001 capital, energy accounting, national accounting, natural resources, net national product, 4 2001 19 8 Environmental and Resource Economics 329 341 http://hdl.handle.net/10.1023/A:1011692113965 text/html Access to full text is restricted to subscribers. John Hartwick hartwick@qed.econ.queensu.ca
oai:RePEc:kap:enreec:v:29:y:2004:i:1:p:97-1222020-08-08RePEc:kap:enreec
article Liability for Past Environmental Contamination and Privatization This paper examines the role ofliability for past environmental contaminationin the privatization processes of Central andEastern Europe. In particular, it establishes alink between a risk-averse investor's amount ofinformation regarding the extent of pastenvironmental contamination (and its cleanupcosts) and the investor's willingness to payfor a particular enterprise, i.e., bid. As theinvestor obtains a more precise estimate of theuncertain cleanup costs, the investor facesless risk; therefore, the investor's riskpremium falls and the investor's bid rises.This link generates four hypotheses regarding aprivatization agency's responses to theinvestor's knowledge of clean-up costs. Copyright Kluwer Academic Publishers 2004 environmental contamination, liability, rivatization, risk, 1 2004 29 9 Environmental and Resource Economics 97 122 http://hdl.handle.net/10.1023/B:EARE.0000035452.76736.51 text/html Access to full text is restricted to subscribers. Dietrich Earnhart earnhart@ku.edu
oai:RePEc:kap:enreec:v:64:y:2016:i:3:d:10.1007_s10640-015-9906-02020-08-08RePEc:kap:enreec
article Optimal Fishery Management with Regime Shifts: An Assessment of Harvesting Strategies Abstract This paper compares outcomes from informed and uninformed harvesting strategies for a fish stock with switching dynamics where the probability of switching is influenced by climate. Using data on sea-surface temperature anomalies, the impacts of climate on the conservation and the welfare that can be extracted from the stock are investigated. Results indicate that an informed management policy leads to stock biomass and resource rents that are up to 2.7 and 2 times higher, respectively, than under an uninformed policy. Also, the fishery is open 54 % longer under the informed policy. The magnitude of these effects depends on the choice of the discount rate indicating that when the future is highly discounted gains from the informed policy dissipate. Bioeconomic modeling, Climate change, Peruvian anchoveta, Real option, Regime switching 3 2016 64 7 6 Environmental and Resource Economics 465 492 Q22 Q54 Q57 http://link.springer.com/10.1007/s10640-015-9906-0 text/html Abstract Michele Baggio michele.baggio@uconn.edu University of Connecticut ETH Zürich
oai:RePEc:kap:enreec:v:36:y:2007:i:3:p:341-3662020-08-08RePEc:kap:enreec
article Environmental Liability Law and Induced Technical Change – The Role of Discounting We analyse the incentives of environmental liability law for inducing progress to emission abatement technology. We consider three liability rules: strict liability, a negligence rule with an emission norm as the due care standard, and a double negligence rule which combines the emission standard with an abatement technology norm. In the case of distortive discounting, i.e. where the private discount rate deviates from the social one, we show, how the level of distortion influences the ranking of liability rules, according to the criterion of generated social cost. Copyright Springer Science+Business Media, Inc. 2007 discounting, emission abatement technology, environmental liability law, induced technical change, 3 2007 36 3 Environmental and Resource Economics 341 366 http://hdl.handle.net/10.1007/s10640-006-9021-3 text/html Access to full text is restricted to subscribers. Alfred Endres Alfred.Endres@Fernuni-Hagen.de Regina Bertram Bianca Rundshagen
oai:RePEc:kap:enreec:v:11:y:1998:i:2:p:217-2412020-08-08RePEc:kap:enreec
article Incremental Cost in the Convention on Biological Diversity The Convention on Biological Diversity stipulates the principle of incremental cost for the international financing of biodiversity conservation. The international debate about the exact meaning of the concept and about its practical application focuses on the issues of baseline determination and treatment of incremental domestic benefits. This paper uses some standard tools of partial equilibrium demand analysis to illustrate theoretical solutions to the indeterminacy of the Convention. The allocation of resources resulting from an incremental cost scheme is compared with a 'domestic optimum', and with a hypothetical 'global optimum'. Regarding the behaviour of the country hosting biodiversity, a distinction is proposed between 'quantity-' and 'transfer-' taking behaviour. The issue of price distortions in the baseline is also addressed. It is shown that both the host country (H) and the Rest of the World (ROW) will have incentives for agreeing on a transfer of resources that entails only partial deduction of domestic incremental benefits. This transfer, despite failing to reach the utilitarian global optimum, still represents a Pareto improvement over the pre-convention status quo. By imposing a particular multiplicative functional form on the utility of both host and ROW, additional results can be obtained. In particular, the optimal transfer implies a clawback factor decreasing with relative income differentials, and incremental cost financing dominates the domestic optimum even when price distortions are present in the host country. If removal of price distortions is a precondition for incremental cost funding, the analysis illustrates the magnitude of incentives necessary for the host to give up the distorted baseline. Copyright Kluwer Academic Publishers 1998 environmental and natural resource economics, global environmental problems, transboundary externalities, biodiversity, incremental cost, 2 1998 11 3 Environmental and Resource Economics 217 241 http://hdl.handle.net/10.1023/A:1008293329546 text/html Access to full text is restricted to subscribers. Raffaello Gervigni rcervigni@worldbank.org
oai:RePEc:kap:enreec:v:24:y:2003:i:2:p:121-1392020-08-08RePEc:kap:enreec
article Strategic Environmental Standards, Wage Incomes and the Location of Polluting Firms The purpose of this paper is tostudy how the choice of environmental standardsby governments is affected by the existence ofwage incomes when firms locations areendogenous. In developed countries labor isunionized, which allows positive wage incomesto arise. Thus, each government has incentivesto persuade firms to locate in its countrysince social welfare depends on suchincomes. But, as pollution damages theenvironment, each government will only try toattract polluting firms to thecountry, to obtain the wage incomes, whenthe valuation of environmental damage showsthat it is low. Copyright Kluwer Academic Publishers 2003 environmental standards, location, wage incomes, 2 2003 24 2 Environmental and Resource Economics 121 139 http://hdl.handle.net/10.1023/A:1022837008712 text/html Access to full text is restricted to subscribers. Juan Bárcena-ruiz María Garzón jepgasab@bs.ehu.es
oai:RePEc:kap:enreec:v:4:y:1994:i:2:p:151-1692020-08-08RePEc:kap:enreec
article Taxesversus tradable discharge permits: A review in the light of the U.S. and European experience The U.S. and West European environmental protection programs have incorporated different economic instruments for controlling pollution. The U.S. has made extensive use of tradable permits of several forms but has never used direct pollution taxes. The countries of the European Community have long used an array of pollution taxes but have never used tradable permits. A review and critique of these experiences and an analysis of the attributes of taxes and tradable permits seeks identify the strengths and weaknesses of each instrument and to provide guidelines for the successful implementation of each system. Copyright Kluwer Academic Publishers 1994 Tradable permits, effluent taxes, environmental policy, 2 1994 4 4 Environmental & Resource Economics 151 169 http://hdl.handle.net/10.1007/BF00692201 text/html Access to full text is restricted to subscribers. Charles Howe
oai:RePEc:kap:enreec:v:40:y:2008:i:1:p:37-522020-08-08RePEc:kap:enreec
article Reconsidering the Impact of the Environment on Long-run Growth when Pollution Influences Health and Agents have a Finite-lifetime Growth, Environment, Overlapping generations, Human capital, Health, 1 2008 40 5 Environmental and Resource Economics 37 52 http://hdl.handle.net/10.1007/s10640-007-9139-y text/html Access to full text is restricted to subscribers. X. Pautrel xavier.pautrel@univ-nantes.fr
oai:RePEc:kap:enreec:v:43:y:2009:i:3:p:391-4122020-08-08RePEc:kap:enreec
article Origins and Development of the EU ETS European Union Emissions Trading Scheme, History, Single market, 3 2009 43 7 Environmental and Resource Economics 391 412 http://hdl.handle.net/10.1007/s10640-009-9275-7 text/html Access to full text is restricted to subscribers. Frank Convery frank.convery@ucd.ie
oai:RePEc:kap:enreec:v:10:y:1997:i:3:p:267-2842020-08-08RePEc:kap:enreec
article Regulating a Polluting Firm Under Asymmetric Information This paper reinterprets the Laffont-Tirole model of regulation under asymmetric information to cover the case of pollution control. The asymmetry of information concerns the firm's cost of lowering its pollution. The regulator has three objectives: Ensuring an efficient abatement level, generating 'green taxes' and securing the survival of the firm. We show that when optimal abatement is important relative to tax generation, the regulator cannot use the policy of offering the firm a set of linear tax schemes from which to choose. By contrast, this policy is optimal in the Laffont-Tirole model under certain not very restrictive assumptions. We proceed to establish a simple rule for when to shut-down inefficient types. In an example with specific functional forms, we derive the optimal tax function both analytically and graphically. We show the effect on the optimal tax system of a change in a technological parameter. Copyright Kluwer Academic Publishers 1997 Laffont-Tirole model, tax generation, tax schemes, pollution, regulator, 3 1997 10 10 Environmental and Resource Economics 267 284 http://hdl.handle.net/10.1023/A:1026471117727 text/html Access to full text is restricted to subscribers. Lars Jebjerg Henrik Lando
oai:RePEc:kap:enreec:v:33:y:2006:i:3:p:267-2712020-08-08RePEc:kap:enreec
article Risk Perception, Valuation and Policy: Introduction 3 2006 33 03 Environmental & Resource Economics 267 271 http://hdl.handle.net/10.1007/s10640-005-3607-z text/html Access to full text is restricted to subscribers. Shelby Gerking sgerking@bus.ucf.edu Glenn Harrison
oai:RePEc:kap:enreec:v:45:y:2010:i:4:p:537-5512020-08-08RePEc:kap:enreec
article Choke Price Bias in Choice Experiments Bias, Choke price, Cost attribute, Discrete choice, Income effect, Willingness-to-pay, 4 2010 45 4 Environmental and Resource Economics 537 551 http://hdl.handle.net/10.1007/s10640-009-9327-z text/html Access to full text is restricted to subscribers. Morten Mørkbak mm@foi.dk Tove Christensen tove@foi.dk Dorte Gyrd-Hansen dgh@dsi.dk
oai:RePEc:kap:enreec:v:19:y:2001:i:3:p:257-2662020-08-08RePEc:kap:enreec
article A Note on Defensive Expenditures: Harmonised Law, Diverse Results In the context of many environmental hazards there is scope for self-defence by victims. Multiple equilibria arise in a model of bilateral precaution under a regime of strict but incompletely enforced environmental liability. This means that the same system of environmental law instigated in two economies may lead to very different outcomes. It impacts upon policy analysis in a variety of ways and provides a channel for ``cultural factors'' to matter. We explore the positive and normative effects of subsidising self-defence. Copyright Kluwer Academic Publishers 2001 3 2001 19 7 Environmental and Resource Economics 257 266 http://hdl.handle.net/10.1023/A:1011173305161 text/html Access to full text is restricted to subscribers. Anthony Heyes
oai:RePEc:kap:enreec:v:52:y:2012:i:2:p:157-1792020-08-08RePEc:kap:enreec
article Conservation Auctions and Compliance: Theory and Evidence from Laboratory Experiments Agri-environmental policies, Auction, Conservation contracting, Compliance, Laboratory experiment, Monitoring, C91—Laboratory, Individual Behavior, D44—Auctions, Q28—Government Policy, 2 2012 52 6 Environmental and Resource Economics 157 179 http://hdl.handle.net/10.1007/s10640-012-9551-9 text/html Access to full text is restricted to subscribers. Kentaro Kawasaki kenkawa@affrc.go.jp Takeshi Fujie Kentaro Koito Norikazu Inoue Hiroki Sasaki
oai:RePEc:kap:enreec:v:65:y:2016:i:2:d:10.1007_s10640-015-9898-92020-08-08RePEc:kap:enreec
article Green Goods: Are They Good or Bad News for the Environment? Evidence from a Laboratory Experiment on Impure Public Goods Abstract Green goods such as recycled paper stationary or carbon-neutral flights provide increasingly popular examples of impure public goods. Motivated by theoretical treatments of green goods as a bundle of private and public characteristics in proportions fixed by the provider, we design an experiment with two linked treatments to test how the presence of impure public goods affects behaviour towards public good causes. We set parameters, such that from a standard economic perspective the presence of the impure public good is behaviourally irrelevant. In a treatment where the impure public good provides only small contributions to the public good, we observe that on aggregate pro-social behaviour is lower in the presence of the impure public good. On the contrary, in the treatment where the impure public good is more generous towards the public good component at the expense of private earnings, individuals are unaffected in their behaviour. We observe that impure public goods, that are theoretically irrelevant and are mostly self-interested, may hinder pro-social behaviour and look for explanations in social psychology, such as the phenomenon of thoughtful anchoring, motivated reasoning and reluctant altruism. The results from this experiment question the role of green goods in enhancing environmentally friendly behaviours. Dictator games, Experimental economics, Green goods, Impure public goods, Pro-social behaviour 2 2016 65 10 1 Environmental and Resource Economics 317 335 C91 D64 H41 Q59 http://link.springer.com/10.1007/s10640-015-9898-9 text/html Abstract Alistair Munro National Graduate Institute for Policy Studies (GRIPS) Marieta Valente mvalente@eeg.uminho.pt University of Minho
oai:RePEc:kap:enreec:v:52:y:2012:i:3:p:327-3452020-08-08RePEc:kap:enreec
article Coalition Stability in Public Goods Provision: Testing an Optimal Allocation Rule IEAs, Coalition formation, Experimental economics, Public goods, Shapley value, Nash bargaining solution, H41, C92, C72, C78, D63, D64, D74, 3 2012 52 7 Environmental and Resource Economics 327 345 http://hdl.handle.net/10.1007/s10640-011-9530-6 text/html Access to full text is restricted to subscribers. Matthew McGinty mmcginty@uwm.edu Garrett Milam Alejandro Gelves
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article Cooperation and Climate Change: Can Communication Facilitate the Provision of Public Goods in Heterogeneous Settings? Abstract International and domestic efforts to reduce greenhouse gas emissions require a coordinated effort from heterogeneous actors. In this context, using a public good game with a climate change framing, the experiment reported here examines whether groups of heterogeneous individuals can meet a collective emission-reduction target through individual contributions. In terms of the framing, participants differ in terms of their marginal costs of abatement. The experiment consists of two games: a counterfactual baseline scenario examining the scope for voluntary cooperation and a communication game examining the role of stakeholder participation in facilitating cooperation. During the communication game, subjects are able to communicate with one another in order to coordinate contribution strategies. The results suggest that relying on the voluntary cooperation of individuals will not be sufficient to meet the mitigation target. Furthermore, while communication plays a role in promoting cooperation, even when heterogeneity is present, the non-binding nature of communication results in significant levels of free-riding. In particular, with the introduction of communication, two dominant contribution norms of free-riding and perfect-cooperation emerge. This outcome emphasizes the importance of sanctioning opportunities in ensuring compliance with mitigation obligations. Climate change, Communication, Contribution norm, Heterogeneity, Public good game 3 2016 64 7 4 Environmental and Resource Economics 421 443 H41 Q54 Q58 http://link.springer.com/10.1007/s10640-015-9879-z text/html Abstract Kerri Brick Kerri.Brick@alumni.uct.ac.za University of Cape Town Martine Visser Martine.Visser@uct.ac.za University of Cape Town Zoe Hoven zvdhoven@gmail.com University of Cape Town
oai:RePEc:kap:enreec:v:27:y:2004:i:3:p:227-2462020-08-08RePEc:kap:enreec
article Phase I Completed: An Empirical Assessment of the 1990 CAAA With the conclusion of Phase I trading of SO 2 allowances, the EPA declared the allowance trading policy to be a success. The time had come to include cap-and-trade programs in the arsenal of effective policy tools. In terms of reducing atmospheric emissions of sulfur dioxide, the program appears to be successful. It is not clear, however, whether or not the program has minimized the cost of achieving the emission reductions. The measure of the true success of a market-based incentive program, however, has yetto be quantified: Has the program resulted in converging marginalabatement costs across participant plants? In this study I report theshadow prices of Phase I power plants from 1994 to 1998 anddetermine that there are more costs to be saved within theambitious public policy experiment. Copyright Kluwer Academic Publishers 2004 distance function, energy, pollution abatement, 3 2004 27 3 Environmental and Resource Economics 227 246 http://hdl.handle.net/10.1023/B:EARE.0000017662.36573.2c text/html Access to full text is restricted to subscribers. John Swinton john.swinton@gcsu.edu
oai:RePEc:kap:enreec:v:31:y:2005:i:2:p:175-1992020-08-08RePEc:kap:enreec
article Timing and Commitment of Environmental Policy, Adoption of New Technology, and Repercussions on R&D We investigate the interplay between environmental policy, incentives to adoptnew technology, and repercussions on R&D. We study a model where a monopolistic upstream firm engages in R&D and sells advanced abatement technology to polluting downstream firms. We consider four different timing and commitment regimes of environmental tax and permit policies: ex post taxation (or issuing permits), interim commitment to a tax rate (a quota of permits) after observing R&D success but before adoption, and finally two types of ex antecommitment before R&D activity, one with a unique tax rate (quota of permits), the other one with a menu of tax rates (permit quotas). We study the second best tax and permit policies and rank these with respect to welfare. In particular, we find that commitment to a menu of tax rate dominates all other policy regimes. Copyright Springer 2005 commitment, emission taxes, environmental policy, R&D, technology adoption, time consistency, tradeable permits, L5, Q2, Q28, 2 2005 31 06 Environmental & Resource Economics 175 199 http://hdl.handle.net/10.1007/s10640-005-1770-x text/html Access to full text is restricted to subscribers. Till Requate requate@bwl.uni-kiel.de
oai:RePEc:kap:enreec:v:35:y:2006:i:4:p:327-3382020-08-08RePEc:kap:enreec
article Alternative Models of Recreational Off-Highway Vehicle Site Demand A controversial recreation activity is off-highway vehicle use. Off-highway vehicle use is controversial because it is incompatible with most other activities and is extremely hard on natural eco-systems. This study estimates utility theoretic incomplete demand systems for four off-highway vehicle sites. Since two sets of restrictions are equally consistent with utility theory both are imposed and the best fitting restrictions are identified using Voung’s non-nested testing scheme. The demand system is modeled using both Poisson and negative binomial II distributions. Data are provided by a survey conducted at four recreational off-highway vehicle (OHV) sites in western North Carolina. Copyright Springer Science+Business Media, Inc. 2006 incomplete demand system, integrability, off-road vehicle, travel cost, Q26, C35, C51, 4 2006 35 12 Environmental and Resource Economics 327 338 http://hdl.handle.net/10.1007/s10640-006-9017-z text/html Access to full text is restricted to subscribers. Jeffrey Englin ENGLIN@UNR.EDU Thomas Holmes Rebecca Niell
oai:RePEc:kap:enreec:v:28:y:2004:i:3:p:251-2722020-08-08RePEc:kap:enreec
article Optimal and Open Access Harvesting of Multi-Use Species in a Second-Best World Expansion of human populations and activities has caused increased conflicts between wildlife and humans. As a result, the distinction between resource and pest species has become blurry. We propose an economically-based classification of species based on a multi-use bioeconomic model. The classification of the steady state population of a species is shown to depend on both species' density and economic factors. We extend earlier work on multi-use(resource-pest) species by applying the theoretical model to a developing country context where property rights to wildlife are imperfectly enforced, so that second-best trade measures are often applied by the international community to promote conservation. Upon calibrating the model using data for the African elephant, we derive three further results. First, when comparing the optimal stock of a multi-use species to the open access stock, we find that the ranking in terms of abundance is ambiguous. Second, and consistent with existing literature on resource management in a second-best world, our case study supports the idea that trade bans have ambiguous effectson wildlife abundance. Third, due to a bifurcation effect characterizing the multi-use model's solution, strategic and temporary subsidizing by the North may enable them to free ride on conservation efforts of the South henceforth. Copyright Kluwer Academic Publishers 2004 bioeconomics, elephants, management, nuisance, open access, pest, property rights, renewable resources, trade ban, 3 2004 28 7 Environmental and Resource Economics 251 272 http://hdl.handle.net/10.1023/B:EARE.0000031052.81245.cd text/html Access to full text is restricted to subscribers. Richard Horan horan@msu.edu Erwin Bulte
oai:RePEc:kap:enreec:v:49:y:2011:i:4:p:511-5382020-08-08RePEc:kap:enreec
article Context and the VSL: Evidence from a Stated Preference Study in Italy and the Czech Republic VSL, Conjoint choice experiments, Mortality risk reductions, Cost-benefit analysis, Forced choice questions, I18, J17, K32, Q51, 4 2011 49 8 Environmental and Resource Economics 511 538 http://hdl.handle.net/10.1007/s10640-010-9444-8 text/html Access to full text is restricted to subscribers. Anna Alberini aalberini@arec.umd.edu Milan Ščasný
oai:RePEc:kap:enreec:v:11:y:1998:i:1:p:1-182020-08-08RePEc:kap:enreec
article On the Efficiency of Green Trade Policy The paper derives conditions for second best environmental policy when there are foreign countries which fail to implement appropriate environmental regulations. It is shown that in such cases, efficiency in the global economy will not be achieved unless domestic environmental regulations are supplemented by trade provisions. The result is independent of whether environmental problems are local or international. Furthermore, when trade provisions are implemented, efficiency requires that domestic environmental taxes are fixed at the Pigouvian tax rate. The results imply that there is an economic rationale for regulating the trade between signatories and non-signatories of international environmental agreements. Efficient trade regulations will either take the form of trade restrictions or trade promotions, depending on whether the environmental problem is created by production or consumption activities, and whether the net import of the relevant commodity is positive or negative. It is argued that an efficient climate agreement, signed by a group of fuel-importing countries (e.g., the OECD countries), should include a subsidy on the import of fossil fuels. Copyright Kluwer Academic Publishers 1998 environment, externalities, free-riders, trade policy, 1 1998 11 1 Environmental and Resource Economics 1 18 http://hdl.handle.net/10.1023/A:1008283414254 text/html Access to full text is restricted to subscribers. Ottar MÆstad Ottar.Mastad@nhh.no
oai:RePEc:kap:enreec:v:19:y:2001:i:2:p:165-1722020-08-08RePEc:kap:enreec
article Economic Growth and CO2 Emissions in the European Union This paper examines the relationship between economic growth and CO 2 emissions in the European Union. A panel data analysis for the period 1981 to 1995 is applied in order to estimate the relationship between Gross Domestic Product (GDP) growth and CO 2 emissions in ten selected European countries. The analysis shows important disparities between the most industrialised countries and the rest. The results do not seem to support a uniform policy to control emissions; they rather indicate that a reduction in emissions should be achieved by taking into account the specific economic situation and the industrial structure of each EU member state. Copyright Kluwer Academic Publishers 2001 CO 2 emissions, Kyoto Protocol, panel data, the European Union, the pollution-income relationship, 2 2001 19 6 Environmental and Resource Economics 165 172 http://hdl.handle.net/10.1023/A:1011188401445 text/html Access to full text is restricted to subscribers. Aurelia Bengochea-Morancho Francisco Higón-Tamarit higonf@uv.es Inmaculada Martínez-Zarzoso
oai:RePEc:kap:enreec:v:61:y:2015:i:4:p:517-5572020-08-08RePEc:kap:enreec
article Optimal Multi-species Harvesting in Ecologically and Economically Interdependent Fisheries Single-species management of multi-species fisheries ignores ecological interactions in addition to important economic interactions to the detriment of the health of the ecosystem, the stocks of fish species, and fishery profits. This study maximizes the net present value from a multi-species fishery where species interact ecologically in the ecosystem, and economically through vessels’ multi-product harvesting technology, switching gear types, and interactions in output markets. Numerical optimization techniques are used to determine the optimal harvest quota of each species over time. This study highlights the need to incorporate both ecological and economic interactions that occur between species in an ecosystem. Copyright US Government 2015 Bioeconomic, Ecosystem-based management, Fishery , Multi-output, Multispecies, Q22, Q57, D24, 4 2015 61 8 Environmental and Resource Economics 517 557 http://hdl.handle.net/10.1007/s10640-014-9805-9 text/html Access to full text is restricted to subscribers. Stephen Kasperski Stephen.Kasperski@noaa.gov
oai:RePEc:kap:enreec:v:43:y:2009:i:1:p:119-1352020-08-08RePEc:kap:enreec
article Household Versus Individual Valuation: What’s the Difference? Household values, Choice experiment, Contingent valuation, Food and health risks, C920, D130, D80, 1 2009 43 5 Environmental and Resource Economics 119 135 http://hdl.handle.net/10.1007/s10640-009-9268-6 text/html Access to full text is restricted to subscribers. Ian Bateman Alistair Munro alistair-munro@grips.ac.jp
oai:RePEc:kap:enreec:v:54:y:2013:i:1:p:79-992020-08-08RePEc:kap:enreec
article Climate Policy Under Uncertain and Heterogeneous Climate Damages We highlight that uncertainty about climate damages and the fact that damages will be distributed heterogeneously across the global population can jointly be an argument for substantially stricter climate policy even if uncertainty and heterogeneity in isolation are not. The reason is that a given climate risk borne by fewer people implies greater welfare losses. However, these losses turn out to be significant only if society is both risk and inequality averse and if climate damages are highly heterogeneous. We discuss how insurance and self-insurance of climate risk could theoretically mitigate this joint effect of uncertainty and heterogeneity and thus admit weaker climate policy. Insurance provides more efficient risk sharing and self-insurance allows strongly impacted individuals to compensate damages by increasing savings. We first use a simple analytical model to introduce the different concepts and then provide more realistic results from the integrated assessment model DICE. Copyright Springer Science+Business Media B.V. 2013 Climate change, Climate policy, Stabilization target, Uncertainty, Heterogeneity, Damages, Insurance, 1 2013 54 1 Environmental and Resource Economics 79 99 http://hdl.handle.net/10.1007/s10640-012-9582-2 text/html Access to full text is restricted to subscribers. Matthias Schmidt mgw.schmidt@gmx.net Hermann Held Elmar Kriegler Alexander Lorenz
oai:RePEc:kap:enreec:v:52:y:2012:i:1:p:109-1312020-08-08RePEc:kap:enreec
article Accounting for Latent Attitudes in Willingness-to-Pay Studies: The Case of Coastal Water Quality Improvements in Tobago Integrated Choice and Latent Variable (ICLV) model, Discrete choice, Latent attitude, Coastal water, Beach recreation, Taste heterogeneity, 1 2012 52 5 Environmental and Resource Economics 109 131 http://hdl.handle.net/10.1007/s10640-011-9522-6 text/html Access to full text is restricted to subscribers. Stephane Hess s.hess@its.leeds.ac.uk Nesha Beharry-Borg N.C.Beharry-Borg@leeds.ac.uk
oai:RePEc:kap:enreec:v:40:y:2008:i:3:p:383-3992020-08-08RePEc:kap:enreec
article Alternative Sustainability Criteria, Externalities, and Welfare in a Simple Agroecosystem Model: A Numerical Analysis Chebychev polynomial, Constrained dynamic optimization, Intergenerational equity, Social welfare, Stock externality, Sustainability criteria, 3 2008 40 7 Environmental and Resource Economics 383 399 http://hdl.handle.net/10.1007/s10640-007-9159-7 text/html Access to full text is restricted to subscribers. Craig Bond craig.bond@colostate.edu Y. Farzin farzin@primal.ucdavis.edu
oai:RePEc:kap:enreec:v:60:y:2015:i:2:p:165-1892020-08-08RePEc:kap:enreec
article Green Trade Unions: Structure, Wages and Environmental Technology This paper investigates the effect of trade union structure on firms’ technological choices when unions care about environmental protection. We compare a decentralized with a centralized union structure in a Cournot duopoly. Our results suggest that a decentralized structure provides higher incentives for the investment in cleaner technologies, although emissions may be lower under a centralized structure. The effect of the environmental damage parameter on wages and output may be non-monotonic. Copyright Springer Science+Business Media Dordrecht 2015 Trade union structure, Environmental concerns, Emissions, Technology, Wages, Employment, J51, L13, Q5, O31, 2 2015 60 2 Environmental and Resource Economics 165 189 http://hdl.handle.net/10.1007/s10640-014-9768-x text/html Access to full text is restricted to subscribers. Elias Asproudis ilias.asproudis@northampton.ac.uk Maria Gil-Moltó m.j.gil-molto@sheffield.ac.uk
oai:RePEc:kap:enreec:v:64:y:2016:i:3:d:10.1007_s10640-014-9873-x2020-08-08RePEc:kap:enreec
article A Dynamic Game of Emissions Pollution with Uncertainty and Learning Abstract We introduce learning in a dynamic game of international pollution, with ecological uncertainty. We characterize and compare the feedback non-cooperative emissions strategies of players when the players do not know the distribution of ecological uncertainty but they gain information (learn) about it. We then compare our learning model with the benchmark model of full information, where players know the distribution of ecological uncertainty. We find that uncertainty due to anticipative learning induces a decrease in total emissions, but not necessarily in individual emissions. Further, the effect of structural uncertainty on total and individual emissions depends on the beliefs distribution and bias. Moreover, we obtain that if a player’s beliefs change toward more optimistic views or if she feels that the situation is less risky, then she increases her emissions while others react to this change and decrease their emissions. Pollution emissions, Dynamic games, Uncertainty, Learning 3 2016 64 7 1 Environmental and Resource Economics 349 372 Q50 D83 D81 C73 http://link.springer.com/10.1007/s10640-014-9873-x text/html Abstract Nahid Masoudi Concordia University, GERAD Marc Santugini HEC Montréal Georges Zaccour georges.zaccour@gerad.ca GERAD, HEC Montréal
oai:RePEc:kap:enreec:v:56:y:2013:i:4:p:481-4972020-08-08RePEc:kap:enreec
article A Random Parameter Model with Onsite Sampling for Recreation Site Choice: An Application to Southern California Shoreline Sportfishing Estimation of consistent parameter estimates for recreational demand models faces challenges arising from the choice-based nature of the data collected primarily for resource management purposes. As an alternative to randomized respondent-based sampling, choice-based onsite sampling can provide information on actual choices made by a subset of the population where participation has a low incidence. While the literature has shown that under specific restrictions the estimation of choice models from onsite sampling data yields unbiased fixed parameter estimates for the conditional logit model, this result does not carry over to estimation of the random parameter logit model. We propose an estimator for the unbiased estimation of the random parameter model using choice-based data; our estimator uses weights based on information about the level of sampling effort. An empirical application of the standard and weighted discrete choice RUM models to onsite sample data on recreational fishing illustrates the advantages of the proposed estimator. The estimation results indicate the compensating variation associated with an decrease, or increase, of 50 % in expected catch rates for a recreational shoreline sportfishing trip to a man-made structure in southern California is $$-{\$}2.80$$ or $${\$}3.54$$ per trip, respectively. Copyright US Government 2013 Onsite sampling, Recreation demand, Random utility models, Random parameter logit, Recreational fishing, 4 2013 56 12 Environmental and Resource Economics 481 497 http://hdl.handle.net/10.1007/s10640-013-9640-4 text/html Access to full text is restricted to subscribers. Koichi Kuriyama James Hilger james.hilger@noaa.gov Michael Hanemann
oai:RePEc:kap:enreec:v:27:y:2004:i:3:p:337-3662020-08-08RePEc:kap:enreec
article Structural Adjustment Programme, Deforestation and Biodiversity Loss in Ghana An empirical investigation is undertaken into the impact of the Structural Adjustment Programme (SAP) on forest and biodiversity loss in Ghana between the period 1965–1995. In the first part of the analysis, a four-equation recursive model, consisting of forest loss, cocoa land, maize land and timber production equations, is employed to examine the impact of the SAP on forest loss. The first equation is a function of the last three, and the last three are functions of mainly prices. Piecewise linear and switching regression approaches are used to distinguish between the influence of the post from the pre-adjustment impacts. These results together with a specie-forest area relationship are used to investigate the impact of the SAP on biodiversity loss. The overall results indicate that cocoa land expansion and timber production, but not maize land expansion, are the significant causes of forest loss in Ghana. However, the impact on forest loss in the post-adjustment period was reduced. The rate of biodiversity loss also reduced in the post-adjustment period. Changes in relative output and input prices due to the SAP may have played a significant role in the reduced impact of agricultural and timber related deforestation and biodiversity loss in the post-adjustment period. Copyright Kluwer Academic Publishers 2004 biodiversity loss, cocoa land, forest loss, Ghana, maize land, prices, structural adjustment, timber production, 3 2004 27 3 Environmental and Resource Economics 337 366 http://hdl.handle.net/10.1023/B:EARE.0000017653.15107.0f text/html Access to full text is restricted to subscribers. James Benhin jbenhin@postino.up.ac.za Edward Barbier
oai:RePEc:kap:enreec:v:52:y:2012:i:1:p:65-852020-08-08RePEc:kap:enreec
article Assessing the Impact of Formal and Informal Regulations on Environmental and Economic Performance of Brazilian Manufacturing Firms Environmental regulation, Informal regulation, Firms, Costs, Brazil, Q21, Q25, L5, 1 2012 52 5 Environmental and Resource Economics 65 85 http://hdl.handle.net/10.1007/s10640-011-9520-8 text/html Access to full text is restricted to subscribers. José Féres jose.feres@ipea.gov.br Arnaud Reynaud areynaud@toulouse.inra.fr
oai:RePEc:kap:enreec:v:31:y:2005:i:3:p:369-3832020-08-08RePEc:kap:enreec
article Uncertainty and Amenity Values in Renewable Resource Economics In this paper, we study the effects of amenities and uncertainty on the optimal exploitation of a renewable resource. First, if society displays a protection motive (in the presence of amenities), its optimal harvesting strategy will be more conservative. Second, we show that ecological uncertainty leads society to develop the opposite behavior, thus reducing its exposition towards risk. A stationary analysis is undertaken to analytically quantify and compare these two effects. With a Gompertz natural regeneration function and a proportional risk, the amenity effect is proved to prevail if and only if stochastic fluctuations on the resource stock are not too large. Copyright Springer 2005 amenities, renewable resources, ecological uncertainty, risk exposition, stationary distributions, Q20, D81, C61, 3 2005 31 07 Environmental & Resource Economics 369 383 http://hdl.handle.net/10.1007/s10640-005-1671-z text/html Access to full text is restricted to subscribers. Gilles Lafforgue gilles.lafforgue@inh.fr
oai:RePEc:kap:enreec:v:12:y:1998:i:3:p:345-3562020-08-08RePEc:kap:enreec
article Emissions Trading and Profitability: The Swedish Pulp and Paper Industry The purpose of this paper is to develop models with and without potential emissions trading and to compare industry profits under the two regimes. The model in which emissions trading is permitted is a nonparametric industry frontier model in the spirit of Färe et al. (1992). It is relative to this model that industry profit is computed. This profit is compared to the profit without emissions trading to give an estimate of the potential gains that can be realised by allowing for emissions trading. The model, which is applied to data for the Swedish pulp and paper industry, suggests that this industry would have had up to 6% (1%) higher profits in 1989 (1990) if emissions trading had been used instead of individual permits to achieve the same total emissions target. Currently there is no permit trading in this industry so our results only model the potential gains that can be made. Copyright Kluwer Academic Publishers 1998 emissions trading, environmental regulations, pulp and paper, profit, 3 1998 12 10 Environmental and Resource Economics 345 356 http://hdl.handle.net/10.1023/A:1008285813997 text/html Access to full text is restricted to subscribers. Runar Brännlund Yangho Chung Rolf Färe Shawna Grosskopf
oai:RePEc:kap:enreec:v:18:y:2001:i:1:p:1-172020-08-08RePEc:kap:enreec
article The Value of Biodiversity in Pharmaceutical Research with Differentiated Products Biologists and conservation advocates have expressed grave concern over perceived threats to biological diversity. ``Biodiversity prospecting'' – the search among naturally occurring organisms for new products of agricultural, industrial, and, particularly, pharmaceutical value – has been advanced as both a mechanism and a motive for conserving biological diversity. Economists and others have attempted to estimate the value of biodiversity for use in new pharmaceutical project research. In this paper we apply a new approach to estimating values: we employ two models of competition among differentiated products. Each model confirms previous findings that the value to private researchers of the ``marginal species'' is likely to be small. The models can have very different implications with respect to social values, however. These findings underscore the need for a better understanding of the true meaning of diversity. Copyright Kluwer Academic Publishers 2001 biodiversity prospecting, differentiated products, habitat conversion, pharmaceutical research and development, 1 2001 18 1 Environmental and Resource Economics 1 17 http://hdl.handle.net/10.1023/A:1011170024649 text/html Access to full text is restricted to subscribers. Amy Craft R. Simpson
oai:RePEc:kap:enreec:v:31:y:2005:i:2:p:133-1572020-08-08RePEc:kap:enreec
article Managing Permit Markets to Stabilize Prices The political economy of environmental policy favors the use of quantity-based instruments over price-based instruments (e.g., tradable permits over green taxes), at least in the United States. With cost uncertainty, however, there are clear efficiency advantages to prices in cases where the marginal damages of emissions are relatively flat, such as with greenhouse gases. The question arises, therefore, of whether one can design flexible quantity policies that mimic the behavior of price policies, namely stable permit prices and abatement costs. We explore a number of “quantity-plus” policies that replicate the behavior of a price policy through rules that adjust the effective permit cap for unexpectedly low or high costs. They do so without necessitating any monetary exchanges between the government and the regulated firms, which can be a significant political barrier to the use of price instruments. Copyright Springer 2005 banking, borrowing, prices, quantities, tradable permit market, uncertainty, Q28, Q48, D8 , L51, 2 2005 31 06 Environmental & Resource Economics 133 157 http://hdl.handle.net/10.1007/s10640-005-1761-y text/html Access to full text is restricted to subscribers. Richard Newell newell@rff.org William Pizer Jiangfeng Zhang
oai:RePEc:kap:enreec:v:65:y:2016:i:1:d:10.1007_s10640-015-9907-z2020-08-08RePEc:kap:enreec
article Equity as a Prerequisite for Stability of Cooperation on Global Public Good Provision Abstract Analysing cooperative provision of a global public good such as climate protection, we explore the relationship between equitable burden sharing on the one hand and core stability on the other. To assess the size of the burden which a public good contribution entails for a country, we make use of a specific measure based on Moulin (Econometrica 55:963–977, 1987). In particular, we show that a Pareto optimal allocation which is not in the core can always be blocked by a group of countries with the highest Moulin sacrifices. In this sense, it is the ‘overburdening’ and thus ‘unfair’ treatment of some countries that provides the reason for core instability. By contrast, a Pareto optimal allocation is in the core if the public good contributions are fairly equally distributed according to their Moulin sacrifices. The potential implications of our theoretical analysis for global climate policy are also discussed. Public goods, Core, Equity, Stability of cooperation 1 2016 65 9 4 Environmental and Resource Economics 61 78 C71 D63 H41 http://link.springer.com/10.1007/s10640-015-9907-z text/html Abstract Wolfgang Buchholz wolfgang.buchholz@ur.de University of Regensburg Alexander Haupt Alexander.haupt@plymouth.ac.uk Plymouth University Wolfgang Peters Peters@europa-uni.de European University Viadrina
oai:RePEc:kap:enreec:v:2:y:1992:i:2:p:161-1812020-08-08RePEc:kap:enreec
article Transboundary air pollution and soil acidification: A dynamic analysis of an acid rain game between Finland and the USSR Transboundary air pollution is analysed as a dynamic game between Finland and the nearby areas of the Soviet Union. Sulphur emissions are used as the environmental control variables and the acidities of the soils as the state variables. Acidification is consequently considered to be a stock pollutant having long-lasting harmful effects on the environment. The state dynamics consist of two relationships: first, of a sulphur transportation model between the regions and, second, of a model describing how the quality of the soil is affected by sulphur deposition. The countries are assumed to be interested in maximizing the net benefits from pollution control as measured by the impacts on the values of forest growth net of the abatement costs. Cooperative and noncooperative solutions of the game are compared to assess the benefits of bilateral cooperation. Using empirical estimates of abatement costs, acidification dynamics and impacts on forest growth it is shown that cooperation is beneficial to Finland but not to the Soviet Union. Consequently, Finland has to offer monetary compensation to induce her neighbor to invest in environmental protection. Copyright Kluwer Academic Publishers 1992 Pollution contron, acidification, acid rain game, transboundary air pollution, 2 1992 2 3 Environmental & Resource Economics 161 181 http://hdl.handle.net/10.1007/BF00338241 text/html Access to full text is restricted to subscribers. Veijo Kaitala Matti Pohjola Olli Tahvonen
oai:RePEc:kap:enreec:v:5:y:1995:i:3:p:273-2862020-08-08RePEc:kap:enreec
article Environmental capital flight and pollution tax This paper analyzes the impacts of a production pollution tax on environmental capital flight and national product in a two-country static general equilibrium model with two-way foreign investment. It is assumed that the capital input in both countries is a composite good of domestic and imported capital. And pollution is assumed to originate in the production process. The productivity of capital in each country is negatively (or positively) related to the worldwide aggregate emissions. The analysis shows that when a domestic pollution tax is levied, domestic capital outflows increase and foreign capital inflows decrease for sufficiently high elasticities of substitution between labor (immobile input) and capital (mobile input) in both countries. Moreover, with negative transnational externalities, increases of a domestic pollution tax reduce domestic production and increase foreign production. The difficulty of substitution between immobile and mobile inputs hinders the optimal allocation of worldwide capital and national product. In this paper, the optimal pollution tax is based on global welfare maximization, not on global income maximization, taking into consideration the impact of income change on individual welfare. Therefore, an optimal pollution tax in the developing country should be lower for a given rate of pollution. Copyright Kluwer Academic Publishers 1995 Production pollution tax, environmental capital flight, global environmental change, global welfare maximization, 3 1995 5 4 Environmental & Resource Economics 273 286 http://hdl.handle.net/10.1007/BF00691520 text/html Access to full text is restricted to subscribers. Lih-Jau Wang
oai:RePEc:kap:enreec:v:28:y:2004:i:4:p:507-5152020-08-08RePEc:kap:enreec
article Ethical Issues with Contingent Valuation Surveys in Developing Countries: A Note on Informed Consent and Other Concerns This article calls attention to some of the problems involved in the ethical review and oversight of contingent valuation research in developing countries, including the question of what informed consent means in a cross-cultural context. A central area of concern is that contingent valuation (CV) surveys have the potential to confuse or mislead respondents. This can cause an individual respondent who is confused or misled to take actions that could harm himself or members of his household. The spread of misinformation and confusion among the study population could also influence the policy process itself in unintended and unfortunate ways, perhaps harming the respondent or others. There are three main ways in which CV surveys can mislead or confuse an individual respondent and spread confusion in the study population: (1) inaccurate provision of background information in the CV scenario, (2) the description of the hypothetical market, and (3) the use of the referendum elicitation procedure and other split-sample experiments commonly used by CV researchers. The difficulties of cross-cultural communication and cooperation add to the ethical complexity of conducting CV surveys in developing countries. Three cross-cultural problems deserve special attention by both institutional review boards and contingent valuation researchers: (i) promises of anonymity and the right of respondents not to participate, (ii) power asymmetries between international and local members of the contingent valuation research team, and (iii) compensation of respondents. Copyright Kluwer Academic Publishers 2004 contingent valuation method, ethical review, informed consent, institutional review boards, 4 2004 28 8 Environmental and Resource Economics 507 515 http://hdl.handle.net/10.1023/B:EARE.0000036776.89379.4f text/html Access to full text is restricted to subscribers. Dale Whittington Dale_Whittington@unc.edu
oai:RePEc:kap:enreec:v:56:y:2013:i:4:p:521-5342020-08-08RePEc:kap:enreec
article International Public Preferences and Provision of Public Goods: Assessment of Passive Use Values in Large Oil Spills With global media reporting major environmental disasters, environmental damages linked to large oil spills may go well beyond the territorial limits of affected countries, particularly in the case of passive use values. In this analysis, we compare environmental damages linked a large oil spill off the coast of Spain using an online contingent valuation survey in three different European countries: Spain, UK, and Austria. Our results show that mean willingness to pay in Spain is about 124.37€/household, 80.87€/household in the UK, and 89.08€/household for Austria (expressed in 2009 prices). Conclusions and implications of our results suggest policy makers should consider the potential importance of passive use values in the compensation process of environmental damages caused by large international oil spills, especially within the European Union. Copyright Springer Science+Business Media B.V. 2013 Oil spills, Passive use values, Sea pollution, Europe, 4 2013 56 12 Environmental and Resource Economics 521 534 http://hdl.handle.net/10.1007/s10640-012-9556-4 text/html Access to full text is restricted to subscribers. Maria Loureiro maria.loureiro@usc.es John Loomis
oai:RePEc:kap:enreec:v:54:y:2013:i:4:p:593-6112020-08-08RePEc:kap:enreec
article A Split-Sample Revealed and Stated Preference Demand Model to Examine Homogenous Subgroup Consumer Behavior Responses to Information and Food Safety Technology Treatments The combination and joint estimation of revealed and stated preference (RP/SP) data approach to examining consumer preferences to relevant policy-based measures typically fail to account for heterogeneity in the data by considering behavior of the average individual. However, in policy-based analyses, where the research is often driven by understanding how different individuals react to different or similar scenarios, a preferred approach would be to analyze preferences of homogenous population subgroups. We accomplish this by developing a split-sample RP/SP analysis that examines whether homogenous subgroups of the population, based on individual health and behavioral characteristics, respond differently to health-risk information and new food safety technology. The ongoing efforts by the US Food and Drug Administration (FDA) to reduce illness and death associated with consuming raw Gulf of Mexico oysters provide an ideal platform for the analysis as the health risks only relate to a very specific consumer subgroup. Results from split-sample demand models indicate that educational information treatments cause vulnerable at-risk consumers to reduce their oyster demand, implying that a more structured approach to disseminating the brochures to the at-risk population could have the desired result of reducing annual illness levels. Also, findings across all subgroups provide strong empirical evidence that the new FDA policy requiring processing technology to be used in oyster production will have a detrimental effect on the oyster industry. Copyright Springer Science+Business Media Dordrecht 2013 Food safety technology, Health-risk information, Homogenous subgroups, Revealed preference, Stated preference, 4 2013 54 4 Environmental and Resource Economics 593 611 http://hdl.handle.net/10.1007/s10640-012-9608-9 text/html Access to full text is restricted to subscribers. O. Morgan morganoa@appstate.edu John Whitehead whiteheadjc@appstate.edu William Huth whuth@uwf.edu Greg Martin Marting1@nku.edu Richard Sjolander rsjoland@uwf.edu
oai:RePEc:kap:enreec:v:65:y:2016:i:1:d:10.1007_s10640-016-0014-62020-08-08RePEc:kap:enreec
article A Rent-Seeking Model of Voluntary Overcompliance: Addendum Abstract In a previous paper (Haan in Environ Resour Econ, 2016) I missed some relevant literature essentially related to that paper. In this addendum I discuss how two earlier contributions (Graichen et al. in Public Choice 108:273–293, 2001; Liston-Heyes in J Environ Econ Manag 41:1–12, 2001) are related to Haan (Environ Resour Econ, 2016), and how Haan (Environ Resour Econ, 2016) differs from those contributions. Voluntary overcompliance, Regulation, Rent-seeking 1 2016 65 9 15 Environmental and Resource Economics 313 315 Q50 D72 L51 http://link.springer.com/10.1007/s10640-016-0014-6 text/html Abstract Marco A. Haan m.a.haan@rug.nl University of Groningen
oai:RePEc:kap:enreec:v:26:y:2003:i:2:p:199-2102020-08-08RePEc:kap:enreec
article Elicitation of Expert Opinion in Benefit Transfer of Environmental Goods Benefit transfer is a method for estimating the value of environmental goods that involves the use of past information on identical or similar goods. This paper considers the extent to which benefit transfer can be based on prior distributions elicited from expert opinion. We propose two alternative methods to elicit the parameters of a prior distribution from experts on environmental valuation. An experiment is carried out on the value of National Parks in Spain. The results from the elicited distributions are compared with the information provided by onsite samples of visitors. The results indicate that individual experts made different predictions about the potential value of the policy areas that were diverse and unable to accurately predict the value for each policy site. However, the average across the elicited distributions approaches the estimated distribution with empirical data and accurately predicts the relative values for the two policy sites considered. Copyright Kluwer Academic Publishers 2003 benefit transfer, expert opinion, prior elicitation techniques, National Parks, 2 2003 26 10 Environmental and Resource Economics 199 210 http://hdl.handle.net/10.1023/A:1026307420804 text/html Access to full text is restricted to subscribers. Carmelo León carmelo@empresariales.ulpgc.es Francisco Vázquez-Polo polo@empresariales.ulpgc.es Roberto González rlg103@york.ac.uk
oai:RePEc:kap:enreec:v:63:y:2016:i:4:d:10.1007_s10640-016-0002-x2020-08-08RePEc:kap:enreec
article Should We Pay for Ecosystem Service Outputs, Inputs or Both? Abstract Payments for ecosystem service outputs have recently become a popular policy prescription for a range of agri-environmental schemes. The focus of this paper is on the choice of contract instruments to incentivise the provision of ecosystem service outputs from farms. The farmer is better informed than the regulator in terms of hidden information about costs and hidden-actions relating to effort. The results show that with perfect information, the regulator can contract equivalently on inputs or outputs. With hidden information, input-based contracts are more cost effective at reducing the informational rent related to adverse selection than output-based contracts. Mixed contracts are also cost-effective, especially where one input is not observable. Such contracts allow the regulator to target variables that are “costly-to-fake” as opposed to those prone to moral hazard such as effort. Further results are given for fixed price contracts and input-based contracts with moral hazard. The model is extended to include a discussion of repeated contracting and the scope that exists for the regulator to benefit from information revealed by the initial choice of contract. The models are applied to a case study of contracting with farmers to protect high biodiversity native vegetation that also provides socially-valuable ecosystem services. Payments for ecosystem services, Principal-agent models, Adverse selection, Moral hazard, Biodiversity 4 2016 63 4 5 Environmental and Resource Economics 765 787 http://link.springer.com/10.1007/s10640-016-0002-x text/html Abstract Ben White Benedict.white@uwa.edu.au University of Western Australia Nick Hanley ndh3@st-andrews.ac.uk University of St Andrews
oai:RePEc:kap:enreec:v:4:y:1994:i:1:p:91-1102020-08-08RePEc:kap:enreec
article Conservation of biodiversity and economic development: The concept of transferable development rights For ecological and economic reasons it is more cost effective to conserve habitats rather than species, and hence biodiversity conservation becomes a land use issue. Since in developing countries, land is the most important productive asset, the opportunity costs of conservation are forgone development, while the benefits from conservation are distant and largely external to the host country. The concept of transferable development rights (TDRs), which has been extensively applied to conservation of historical buildings in urban areas, is extended and adapted here to the conservation of biodiversity, both within a country and globally. Creation of a market for TDRs makes effective the latent demand for and supply of biodiversity conservation and generates benefits for both the supplier (developing countries) and the demander (developed countries). The paper explores the conditions and public interventions necessary for the creation of an active market for TDRs. It also proposes a number of mechanisms such as credits and offsets for purchase of TDRs against domestic regulations and conservation taxes in the developed countries. Copyright Kluwer Academic Publishers 1994 Biodiversity, habitats, land use, economic development, conservation, supply, demand, use value, non-use values, transferable development rights, conservation tax, credits and offsets, capital gains, 1 1994 4 2 Environmental & Resource Economics 91 110 http://hdl.handle.net/10.1007/BF00691934 text/html Access to full text is restricted to subscribers. Theodore Panayotou
oai:RePEc:kap:enreec:v:11:y:1998:i:3:p:365-3812020-08-08RePEc:kap:enreec
article New Economic Theories This paper analyses some of the most important spillovers of recent developments of economic theory into environmental economics. Attention is given to the anlaysis of sustainable economic development paths, where endogenous growth models are used; the implications of environmental dumping and more generally of policies concerning global environmental issues, where new trade theories are very useful; and, the effectiveness of environmental policy instruments when markets are imperfectly competitive, where industrial organisation theory is employed. The paper does not only note recent developments in environmental economics, but also relates these to the previous environmental economics literature. Thus, it can be assessed whether new results actually improve our knowledge of crucial economic and environmental issues. Copyright Kluwer Academic Publishers 1998 economic theory, endogenous growth, environmental innovation, imperfect competition, international trade, policy, 3 1998 11 4 Environmental and Resource Economics 365 381 http://hdl.handle.net/10.1023/A:1008204826571 text/html Access to full text is restricted to subscribers. Carlo Carraro ccarraro@unive.it
oai:RePEc:kap:enreec:v:41:y:2008:i:4:p:519-5392020-08-08RePEc:kap:enreec
article Did the Invisible Hand Need a Regulatory Glove to Develop a Green Thumb? Some Historical Perspective on Market Incentives, Win-Win Innovations and the Porter Hypothesis Porter Hypothesis, By-products, Private property rights, Common law, Win-win innovation, L21, O18, Q53, Q55, Q56, R11, 4 2008 41 12 Environmental and Resource Economics 519 539 http://hdl.handle.net/10.1007/s10640-008-9208-x text/html Access to full text is restricted to subscribers. Pierre Desrochers pierre.desrochers@utoronto.ca http://eratos.erin.utoronto.ca/desrochers
oai:RePEc:kap:enreec:v:20:y:2001:i:2:p:165-1722020-08-08RePEc:kap:enreec
article A Comment on Huang and Cai's Constant-Returns Endogenous Growth with Pollution Control 2 2001 20 10 Environmental and Resource Economics 165 172 http://hdl.handle.net/10.1023/A:1012677914363 text/html Access to full text is restricted to subscribers. Jhy-yuan Shieh Ching-chong Lai ccLai@ssp.sinica.edu.tw Jhy-hwa Chen
oai:RePEc:kap:enreec:v:4:y:1994:i:4:p:383-4002020-08-08RePEc:kap:enreec
article Constant-returns endogenous growth with pollution control Pollution control with positive externality from the government is incorporated in an endogenous growth model with “AK” production function. The result indicate that if consumption and abatement expenditure grows at a constant rate, pollution stock will have smaller growth rate. The growth rate of consumption in a command economy will in general be greater than in a competitive economy. A greater intertemporal elasticity of substitution will result in a lower growth rate only if the household's preference parameter against pollution is sufficiently small. The development strategy of pursuing higher growth rate accompanied by more pollution in the early stage of economic development is economically justifiable. The utility in a wealthier economy is always higher in all stages of development than in a poorer economy, as is the pollution stock, although it may converge in the steady state. Copyright Kluwer Academic Publishers 1994 Endogenous growth, pollution control, externalities, sustainable development, 4 1994 4 8 Environmental & Resource Economics 383 400 http://hdl.handle.net/10.1007/BF00692231 text/html Access to full text is restricted to subscribers. Chung-Huang Huang Deqin Cai
oai:RePEc:kap:enreec:v:51:y:2012:i:3:p:317-3522020-08-08RePEc:kap:enreec
article Environmental Regulations, Outward FDI and Heterogeneous Firms: Are Countries Used as Pollution Havens? Pollution haven, Foreign investment, Environmental regulation, 3 2012 51 3 Environmental and Resource Economics 317 352 http://hdl.handle.net/10.1007/s10640-011-9500-z text/html Access to full text is restricted to subscribers. Edward Manderson emanders@uwyo.edu Richard Kneller richard.kneller@nottingham.ac.uk
oai:RePEc:kap:enreec:v:40:y:2008:i:4:p:571-5912020-08-08RePEc:kap:enreec
article Bush v. Gore and the Effect of New Source Review on Power Plant Emissions Event window, New source review, Coal power plants, Air pollution, L50, Q48, Q52, 4 2008 40 8 Environmental and Resource Economics 571 591 http://hdl.handle.net/10.1007/s10640-007-9170-z text/html Access to full text is restricted to subscribers. Ian Lange lange.ian@epa.gov Joshua Linn jlinn@uic.edu
oai:RePEc:kap:enreec:v:51:y:2012:i:4:p:599-6162020-08-08RePEc:kap:enreec
article Modelling Heterogeneity in Response Behaviour Towards a Sequence of Discrete Choice Questions: A Probabilistic Decision Process Model Choice experiment, Decision process, Ordering effects, Strategic response, Willingness to pay, C25, L94, Q51, 4 2012 51 4 Environmental and Resource Economics 599 616 http://hdl.handle.net/10.1007/s10640-011-9514-6 text/html Access to full text is restricted to subscribers. Ben McNair Ben.McNair@anu.edu.au David Hensher Jeff Bennett
oai:RePEc:kap:enreec:v:3:y:1993:i:4:p:313-3352020-08-08RePEc:kap:enreec
article Interconnected games and international environmental problems The purpose of this paper is to introduce the concept of interconnected games and to show its relevance for modeling international environmental problems. It is argued that an interconnected game approach to international environmental problems may enhance cooperation and provide an alternative to the use of financial side payments to induce countries to cooperate. Two types of interconnected games are distinguished in this paper, i.e. direct sum games and tensor games. In the former all the constituting isolated games are games in strategic form and in the latter they are repeated games. In both cases the interconnected game can be interpreted as a multiple objective game, but only the setting where a trade-off is made for the vector-payoffs is considered. In addition to the formal definition of these types of interconnected games, some elementary results concerning Nash equilibria of such games are derived. Copyright Kluwer Academic Publishers 1993 Game theory, repeated games, multiple objective games, tensor games, environmental economics, economic modeling, 4 1993 3 8 Environmental and Resource Economics 313 335 http://hdl.handle.net/10.1007/BF00418815 text/html Access to full text is restricted to subscribers. Henk Folmer Pierre Mouche Shannon Ragland
oai:RePEc:kap:enreec:v:25:y:2003:i:3:p:357-3762020-08-08RePEc:kap:enreec
article Are Uniform Solutions Focal? – The Case of International Environmental Agreements The application of uniform solutions has several drawbacks, notably their lack of cost efficiency and their inability to guarantee individual rationality. A ‘proper’ specification of uniform solutions, however, reveals that uniform solutions that satisfy individual rationality always exist. When all countries hold private information about their own reduction costs, there only exists one solution that always satisfies individually rationality without use of side payments and the requirement of dominant strategy implementation: The solution that selects the smallest individually preferred uniform reduction which also give a theoretical explanation of the ‘lowest common denominator effect’. Copyright Kluwer Academic Publishers 2003 feasibility constraints, focal solutions, international environmental agreements, uniform solutions, 3 2003 25 7 Environmental and Resource Economics 357 376 http://hdl.handle.net/10.1023/A:1024432709657 text/html Access to full text is restricted to subscribers. Urs Brandt usb@sam.sdu.dk
oai:RePEc:kap:enreec:v:59:y:2014:i:3:p:455-4772020-08-08RePEc:kap:enreec
article Macroeconomic Impacts of Carbon Capture and Storage in China Carbon capture and storage (CCS) is a key technology for reducing greenhouse gas emissions. But a CCS facility consumes vast amounts of energy and capital. With this in mind we analyze macroeconomic consequences of a large scale introduction of CCS in China. We modify and extend the DRC-CGE, a macroeconomic CGE model of the country that is used for long-term planning and policy analyses. We analyze an internal finance scenario of domestic funding, and an external finance scenario of international funding. In the external finance scenario CCS is installed on 70 % of all power plants by 2050. This increases demand for coal in 2050 by one fifth and import of coal by one fourth. The strain on coal resources may be an important political concern for China. In the internal finance scenario coal resources are not strained since this scenario introduces a price on carbon that lifts prices of energy. Moreover, the price on carbon cuts across the board and the internal finance scenario is much more effective at reducing $$\hbox {CO}_{2}$$ CO 2 . On the other hand, in this scenario GDP goes down about 4 %, which also raises political concern. Copyright Springer Science+Business Media Dordrecht 2014 GGE, CCS, Climate, China, 3 2014 59 11 Environmental and Resource Economics 455 477 http://hdl.handle.net/10.1007/s10640-013-9742-z text/html Access to full text is restricted to subscribers. Haakon Vennemo haakon.vennemo@vista-analyse.no Jianwu He jianwu@drc.gov.cn Shantong Li shantung@drc.gov.cn
oai:RePEc:kap:enreec:v:1:y:1991:i:4:p:333-3522020-08-08RePEc:kap:enreec
article Toward enhancement of the contribution of theory to environmental policy Theory can be helpful to policy makers by pointing out surprising relationships unlikely to be recognized by unaided common sense; by noting significant exeptions to principles widely accepted; and by offering generalizations of its own. The paper argues that theorists may not have done enough of the first two and may have overstressed the last, giving insufficient warnings of pitfalls. Examples of each of the three are provided. The first is illustrated by a theorem which shows that any new energy source, such as gasohol, which is supplied only because of a subsidy, prospectively uses up more energy than it creates. The important exception application is illustrated by showing that subsidies which reward reduced emissions by the firm tend to increase pollution by the industry. Finally, the paper discusses inadvertent bias in the empirical evidence reasserting the superior performance of fiscal incentives for reduced environmental damage as compared to direct controls, thus casting doubt on the allegedly universal superiority of incentives. Copyright Kluwer Academic Publishers 1991 Environment theory, effluent charges, energy subsidies, 4 1991 1 12 Environmental & Resource Economics 333 352 http://hdl.handle.net/10.1007/BF00377491 text/html Access to full text is restricted to subscribers. William Baumol
oai:RePEc:kap:enreec:v:2:y:1992:i:6:p:635-6392020-08-08RePEc:kap:enreec
article Operational Research and the environment The discipline of Operational Research (OR) is primarily concerned with improving the effectiveness and efficiency of decision processes. These processes take place everywhere in society: industry, banking, agriculture, government, politics. Frequent use of mathematical optimization models is typical of OR. Since the early '80s these models are increasingly packaged in a “user-friendly” way, as “Decision Support Systems”. In the following we will illustrate how OR can be used to describe and solve a number of environmental problems. Copyright Kluwer Academic Publishers 1992 Operational research, decision support systems, environment, 6 1992 2 11 Environmental & Resource Economics 635 639 http://hdl.handle.net/10.1007/BF00330288 text/html Access to full text is restricted to subscribers. P. Beek L. Fortuin L. Wassenhove
oai:RePEc:kap:enreec:v:7:y:1996:i:2:p:149-1622020-08-08RePEc:kap:enreec
article Joint estimation of contingent valuation survey responses Hanemann's utility difference model for the dichotomous choice contingent valuation method is modified to account for interrelationships between responses to a set of contingent valuation questions. A nonlinear seemingly unrelated regression model is presented to jointly estimate the probit models and to derive WTP from the CV responses. The model is used to test and impose restrictions derived from economic theory on the utility difference model. Mean WTP estimates for three different types of changes in the quality of California deer hunting were uniformly lower for the joint response probit model compared to a set of independent probit models. Copyright Kluwer Academic Publishers 1996 Contingent valuation, utility difference model, joint dichotomous responses, 2 1996 7 3 Environmental & Resource Economics 149 162 http://hdl.handle.net/10.1007/BF00699289 text/html Access to full text is restricted to subscribers. Timothy Park John Loomis
oai:RePEc:kap:enreec:v:55:y:2013:i:4:p:555-5682020-08-08RePEc:kap:enreec
article Perspectives on International Trends and Dynamics in Population and Consumption There are increasing concerns that global environmental limits may soon be met as a result of increasing numbers of people coupled with increasing consumption of resources. However, the current level and rates of growth in both consumption and population vary systematically among countries grouped according to income levels. Many high income countries have population growth rates at close to replacement levels, but their per capita consumption is consistently several times higher than low income countries. Low income countries need to grow out of poverty and have high population growth rates. Using current population structures for India and the USA in an age-structured demographic model, and simple projections of annual reductions in fertility or consumption per capita over the next 50 years, we show that while reductions in both consumption and fertility are necessary to stabilize impacts, there are short term gains from consumption reductions in high income countries such as the USA, and long term gains from early fertility reductions in growing economies such as India. Copyright Springer Science+Business Media Dordrecht 2013 Population, Consumption, Demographic projection, Environmental limits, IPAT, 4 2013 55 8 Environmental and Resource Economics 555 568 http://hdl.handle.net/10.1007/s10640-013-9678-3 text/html Access to full text is restricted to subscribers. Georgina Mace g.mace@ucl.ac.uk Emma Terama Tim Coulson
oai:RePEc:kap:enreec:v:12:y:1998:i:4:p:387-4012020-08-08RePEc:kap:enreec
article Green Throughput Taxation: Environmental and Economic Consequences According to optimal taxation theory, raw materials should be taxed to capture the embedded scarcity rent in their value. To reduce both natural resource use and the corresponding emissions, or the throughput in the economic system, the best policy may be a tax on material inputs. As a first approach to throughput taxation, this paper considers a tax on intermediates in the framework of a dynamic computable general equilibrium model with environmental feedbacks. To balance the budget, payroll taxes are reduced. As a result, welfare indicators as material consumption and leisure time consumption are reduced, while on the other hand all the environmental indicators improve. Copyright Kluwer Academic Publishers 1998 double dividend, dynamic CGE model, mass balance, material taxation, waste, welfare, 4 1998 12 12 Environmental and Resource Economics 387 401 http://hdl.handle.net/10.1023/A:1008234017015 text/html Access to full text is restricted to subscribers. Annegrete Bruvoll agb@ssb.no Karin Ibenholt agb@ssb.no
oai:RePEc:kap:enreec:v:52:y:2012:i:4:p:531-5482020-08-08RePEc:kap:enreec
article Protesting and Justifying: A Latent Class Model for Contingent Valuation with Attitudinal Data Contingent valuation, Attitudinal data, Latent class model, Protest responses, Justification bias, C35, C85, Q51, 4 2012 52 8 Environmental and Resource Economics 531 548 http://hdl.handle.net/10.1007/s10640-011-9541-3 text/html Access to full text is restricted to subscribers. Maria Cunha-e-Sá mcunhasa@fe.unl.pt Lívia Madureira Luis Nunes Vladimir Otrachshenko
oai:RePEc:kap:enreec:v:12:y:1998:i:2:p:203-2242020-08-08RePEc:kap:enreec
article Joint Implementation: Strategic Reactions and Possible Remedies This paper investigates the promising proposal of Joint Implementation (JI) to mitigate greenhouse gas emissions. This was ultimately the only concrete outcome of the Conference on Climate Change in Berlin, albeit restricted to a pilot phase. The basic idea, given the public's awareness of global warming, sounds economically plausible: The industrialized countries, the only ones required to stabilize and lower carbon emissions, can search for cheaper reductions of greenhouse gas emissions in developing countries and economies in transition. However, this proposal leads to strategic reactions by developing countries reinforced by the fact that this cheating coincides with the interest of the industrialized country. In short, this proposal will lead to cheating (given asymmetric information) and will thus produce largely faked reductions in emissions. On the constructive side, an efficient mechanism retaining the spirit of JI is derived, which deters strategic reactions. This differs from a usual principal-agent problem through an additional hierarchical layer: a global authority (e.g. the Conference of Parties on Climate Change), an industrialized country and a developing country. The unavoidable loss that is even associated with an optimal scheme due to strategic, behavioural reality (the first best optimum is unattainable, except at the top) leads, of course, to much less glamorous predictions in emission reductions. Moreover, the implicit subsidization scheme focuses and favours on already 'efficient' partners. Copyright Kluwer Academic Publishers 1998 asymmetric information, global warming, joint implementation, optimal incentives, strategic reactions, 2 1998 12 9 Environmental and Resource Economics 203 224 http://hdl.handle.net/10.1023/A:1008272620797 text/html Access to full text is restricted to subscribers. Franz Wirl Claus Huber I.O Walker
oai:RePEc:kap:enreec:v:27:y:2004:i:3:p:265-2722020-08-08RePEc:kap:enreec
article Transboundary Environmental Problems with Mobile but Heterogeneous Populations Most of the literature on transboundaryenvironmental problems treats population ineach country or region as constant, ignoringpopulation mobility. We showed previously thatif there is perfect population mobility betweenregions, and populations are homogeneous, asocially efficient outcome can be supported asa Nash equilibrium of the game of uncoordinatedpolicy setting, even without any internationalenvironmental agreement. In the present paperwe introduce heterogeneous population, and showthat when people differ, a non-cooperativeoutcome is generally inefficient. We alsodemonstrate that for a particular set ofobjective functions for the regionalgovernments, there is an equilibrium of thegame of uncoordinated policy setting that isefficient. Finally, we give an example wherethe decentralized outcome is efficient whenthere is no population mobility, butinefficient when there is population mobility. Copyright Kluwer Academic Publishers 2004 federalism, population mobility, transboundary pollution, 3 2004 27 3 Environmental and Resource Economics 265 272 http://hdl.handle.net/10.1023/B:EARE.0000017663.80803.a4 text/html Access to full text is restricted to subscribers. Michael Hoel mihoel@econ.uio.no Perry Shapiro pxshap@econ.ucsb.edu
oai:RePEc:kap:enreec:v:54:y:2013:i:3:p:443-4692020-08-08RePEc:kap:enreec
article Cooperative Management of Groundwater Resources in the Presence of Environmental Externalities This paper investigates how cooperation among users can achieve a better management of groundwater in the presence of environmental externalities. Cooperation allows users to internalize the damages caused by their activities and reduce extractions. The paper develops a game theoretical framework to assess the value of cooperation in an aquifer that is divided into three sub-aquifers that are being overly exploited. Two types of externalities are modeled: first, water extractions in each sub-aquifer impact water levels in neighboring sub-aquifers (extraction externality). Second, the three sub-aquifers are also connected to an ecosystem and thus decisions in each sub-aquifer affect the health of the ecosystem (environmental externality). A cooperative game theory model is applied. The model empirically shows how the uncontrolled extractions in each sub-aquifer affects neighboring groundwater users but also cause severe impacts to the linked ecosystem. The model is tested empirically in one of the most important aquifers in Spain, the Eastern la Mancha aquifer. The results illustrate how both extraction and environmental externalities interact in affecting the likelihood of cooperation among the users. The paper estimates the value of cooperation and its stability with and without the environmental externality. Copyright Springer Science+Business Media B.V. 2013 Cooperation, Non-cooperation, Externalities, Common-pool resources, Groundwater management, Ecosystem, Game theory, Shapley value, Nash-Harsanyi solution, Core, Public choice, D62, D7, Q25, Q28, 3 2013 54 3 Environmental and Resource Economics 443 469 http://hdl.handle.net/10.1007/s10640-012-9602-2 text/html Access to full text is restricted to subscribers. Encarna Esteban encarnae@unizar.es Ariel Dinar adinar@ucr.edu
oai:RePEc:kap:enreec:v:16:y:2000:i:3:p:329-3412020-08-08RePEc:kap:enreec
article An Experimental Testing of Anchoring Effects in Discrete Choice Questions This paper re-examines the openended/dichotomous choice question in the lab. It hasearlier been suggested that the dichotomous choiceformat suffers from anchoring and yea-saying.Comparing actual economic commitments for a privategood with a significant market value, we cannot rejectthe null hypothesis of equal WTP for the two formats.We conclude that problems with DC might be due toissues of how the survey is framed, not the DCquestion itself. Copyright Kluwer Academic Publishers 2000 anchoring, contingent valuation, experimental economics, 3 2000 16 7 Environmental and Resource Economics 329 341 http://hdl.handle.net/10.1023/A:1008388421810 text/html Access to full text is restricted to subscribers. P. Frykblom peter.frykblom@ekon.slu.se Jason Shogren
oai:RePEc:kap:enreec:v:50:y:2011:i:4:p:495-5142020-08-08RePEc:kap:enreec
article Indoor Air Pollution and Children’s Health: Net Benefits from Stove and Behavioral Interventions in Rural China Indoor Air Pollution, Environmental Valuation, Health, 4 2011 50 12 Environmental and Resource Economics 495 514 http://hdl.handle.net/10.1007/s10640-011-9479-5 text/html Access to full text is restricted to subscribers. Fei Yu feiyu@colby.edu
oai:RePEc:kap:enreec:v:38:y:2007:i:2:p:231-2432020-08-08RePEc:kap:enreec
article Measuring welfare losses from interruption and pricing as responses to water shortages: an application to the case of Seville Consumer surplus, Household behavior, Rationing, Supply interruptions, Water demand, D11, D12, D45, D60, Q25, 2 2007 38 10 Environmental and Resource Economics 231 243 http://hdl.handle.net/10.1007/s10640-006-9072-5 text/html Access to full text is restricted to subscribers. David Roibás droibas@uniovi.es M. García-Valiñas Alan Wall
oai:RePEc:kap:enreec:v:61:y:2015:i:2:p:273-2962020-08-08RePEc:kap:enreec
article Ramsey Discounting of Ecosystem Services Most ecosystem services, which are essential for human well-being, are globally declining, while the production of consumption goods, measured by GDP, is still growing. To adequately account for this opposite development in public cost-benefit analyses, it has been proposed—based on a two-goods extension of the Ramsey growth model—to apply good-specific discount rates for manufactured consumption goods and for ecosystem services. Using empirical data for ten ecosystem services across five countries and the world at large, we estimated the difference between the discount rates for ecosystem services and for manufactured consumption goods. In a conservative estimate, we found that ecosystem services in all countries should be discounted at rates that are significantly lower than the ones for manufactured consumption goods. On global average, ecosystem services should be discounted at a rate that is 0.9 $$\pm $$ ± 0.3 %-points lower than the one for manufactured consumption goods. The difference is larger in less developed countries and smaller in more developed countries. This result supports and substantiates the suggestion that public cost-benefit-analyses should use country-specific dual discount rates—one for manufactured consumption goods and one for ecosystem services. Copyright Springer Science+Business Media Dordrecht 2015 Discounting, Ecosystem services, (De)growth, Heterogeneous consumption, Relative scarcities, Ramsey model , Substitution, H43, Q28, Q51, Q57, 2 2015 61 6 Environmental and Resource Economics 273 296 http://hdl.handle.net/10.1007/s10640-014-9792-x text/html Access to full text is restricted to subscribers. Stefan Baumgärtner baumgaertner@uni.leuphana.de Alexandra Klein Denise Thiel Klara Winkler
oai:RePEc:kap:enreec:v:20:y:2001:i:3:p:197-2102020-08-08RePEc:kap:enreec
article Stock Externality vs. Symbiosis in a Forest-Air System Stock externalities and ecological interaction have similar equilibrium effects. The influence on the dynamics of an ecosystem, however, is quite different. The different effects are laid out theoretically in the context of a forest-air model. We compare a centralized, welfare-maximizing policy and decentralized policies. Finally, we numerically simulate the dynamic differences between stock externalities and ecological interaction. Copyright Kluwer Academic Publishers 2001 air pollution, logging, optimal control, stock externality, symbiosis, 3 2001 20 11 Environmental and Resource Economics 197 210 http://hdl.handle.net/10.1023/A:1012634101092 text/html Access to full text is restricted to subscribers. Oskar Von dem Hagen Holger Wacker
oai:RePEc:kap:enreec:v:52:y:2012:i:2:p:265-2912020-08-08RePEc:kap:enreec
article Optimal Mechanisms for Heterogeneous Multi-Cell Aquifers Common property resource, Differential games, Groundwater extraction, Imperfect monitoring, Markov perfect equilibrium, 2 2012 52 6 Environmental and Resource Economics 265 291 http://hdl.handle.net/10.1007/s10640-011-9528-0 text/html Access to full text is restricted to subscribers. Stergios Athanassoglou athanassoglou@gmail.com Glenn Sheriff sheriff.glenn@epa.gov Tobias Siegfried siegfried@hydrosolutions.ch Woonghee Huh tim.huh@sauder.ubc.ca
oai:RePEc:kap:enreec:v:14:y:1999:i:1:p:19-312020-08-08RePEc:kap:enreec
article Long-Run Implications for Developing Countries of Joint Implementation of Greenhouse Gas Mitigation Joint Implementation (JI) calls for cooperation between industrialized and developing countries in the mitigation of greenhouse gas (GHG) emissions. However, a major concern of potential host countries is that, if they utilize their low-cost options for JI now, they will be left with only high cost options in the future, thereby penalizing them at a time when they may be obligated to mitigate GHGs themselves. This paper formalizes this hypothesis by utilizing an optimal control framework analogous to the Hotelling model of non-renewable resource extraction. The results are that cumulative abatement effects can impose costs on the future, but that they can be offset by technological change, market power, or compensation. Copyright Kluwer Academic Publishers 1999 greenhouse gas mitigation, activities implemented jointly, clean development mechanism, international cooperation, optimal control, 1 1999 14 7 Environmental and Resource Economics 19 31 http://hdl.handle.net/10.1023/A:1008396829502 text/html Access to full text is restricted to subscribers. Adam Rose Erwin Bulte Henk Folmer
oai:RePEc:kap:enreec:v:63:y:2016:i:3:p:665-6862020-08-08RePEc:kap:enreec
article Sharing a Fish Stock When Distribution and Harvest Costs are Density Dependent We studied cooperative and competitive solutions for managing a trans-boundary fish stock that has a stock-size dependent distribution and harvesting costs, using Norwegian spring-spawning (NSS) herring (Clupea harengus) as a case study. This is among the first studies to investigate the effect of a dynamic distribution in a partition function game framework, i.e., including externalities. The special feature of NSS herring is that it comes under the sole ownership of Norway when the stock size is sufficiently low. The three players in our game are differentiated by stock ownership, cost per unit effort and stock elasticity of harvest. We find that cost asymmetry improves the likelihood of forming a stable grand coalition as harvesting load can be assigned to each fishing zone according to a player’s relative cost level and the density of fish. A dynamic distribution increases the bargaining power of Norway because of her ability to control both the total stock and the stock shares in different zones, especially during the stock transition years. However, the bargaining power of Norway may disappear if her cost of harvesting exceeds that of the other players. This loss of bargaining power can take on two forms: first, a dynamic distribution may encourage a minor player to free ride because Norway, needing a coalition partner to improve her cost-effectiveness, would be less inclined to retaliate as retaliation hurts her ally as much as the free-rider; second, in a stable grand coalition, Norway is not guaranteed to receive an allocation of benefit shares in proportion to (not to say in excess of) her stock ownership. At the current stock condition, the strategy where Norway reduces stock abundance below the level where the stock becomes non-migratory is found attractive only if the discounting rate is sufficiently high. Copyright Springer Science+Business Media Dordrecht 2016 Coalition game, Dynamic stock distribution, International resource management, Partition function game, Modified Shapley value, C71, Q22, Q57, 3 2016 63 3 Environmental and Resource Economics 665 686 http://hdl.handle.net/10.1007/s10640-014-9858-9 text/html Access to full text is restricted to subscribers. Xiaozi Liu xiaoziliu@yahoo.com Marko Lindroos Leif Sandal
oai:RePEc:kap:enreec:v:10:y:1997:i:2:p:109-1232020-08-08RePEc:kap:enreec
article Evaluating the Validity of the Dichotomous Choice Question Format in Contingent Valuation Hypothetical and actual cash willingness to pay (WTP) for an art print were elicited with dichotomous choice and open-ended question formats. Comparing hypothetical and actual dichotomous choice responses using both a likelihood ratio test and the method of convolutions suggests we reject equality at the 0.05 but not the 0.01 level. Hypothetical WTP was roughly two times actual WTP with the dichotomous choice format. There were no significant differences between the open-ended and dichotomous choice question formats when both were used to estimate hypothetical WTP or both used to estimate actual WTP. Copyright Kluwer Academic Publishers 1997 hypothetical bias, willingness to pay, experimental economics, 2 1997 10 9 Environmental and Resource Economics 109 123 http://hdl.handle.net/10.1023/A:1026403916622 text/html Access to full text is restricted to subscribers. John Loomis Thomas Brown Beatrice Lucero George Peterson
oai:RePEc:kap:enreec:v:23:y:2002:i:4:p:472-4742020-08-08RePEc:kap:enreec
article G. Cornelius van Kooten and Erwin H. Bulte, 2000, The Economics of Nature: Managing Biological Assets 4 2002 23 12 Environmental and Resource Economics 472 474 http://hdl.handle.net/10.1023/A:1021368705396 text/html Access to full text is restricted to subscribers. Roger Perman r.perman@strath.ac.uk
oai:RePEc:kap:enreec:v:64:y:2016:i:2:d:10.1007_s10640-014-9863-z2020-08-08RePEc:kap:enreec
article Producing Biofuels in Low-Income Countries: An Integrated Environmental and Economic Assessment for Tanzania Abstract This paper jointly evaluates the greenhouse gas emissions and economic impacts from producing biofuels in Tanzania. Sequentially-linked models capture natural resource constraints; emissions from land use change; economywide growth linkages; and household poverty. Results indicate that there are economic incentives to convert unused lands to sugarcane-ethanol production, but only grasslands (not forests) have a reasonable carbon payback period. There are also strong socioeconomic reasons to involve smallholders in feedstock production in order to reduce rural poverty, especially since our results indicate that biofuels have little effect on food production. Yet smallholders require more land than large-scale plantations and so face more binding natural resource and emissions constraints. Overall, environmental constraints alter the socioeconomically optimal biofuel strategy for Tanzania by limiting potential poverty reduction. Unlike previous studies, our integrated assessment suggests that a mixed farming system with greater emphasis on large-scale plantations is more appropriate for producing sugarcane-ethanol in Tanzania. Biofuels, Economic growth, Greenhouse gas emissions, Poverty, Tanzania 2 2016 64 6 1 Environmental and Resource Economics 153 171 http://link.springer.com/10.1007/s10640-014-9863-z text/html Abstract James Thurlow j.thurlow@cgiar.org International Food Policy Research Institute United Nations University - World Institute for Development Economics Research Giacomo Branca giacomo.branca@fao.org Food and Agriculture Organization (FAO) Erika Felix erika.felix@fao.org Food and Agriculture Organization (FAO) Irini Maltsoglou irini.maltsoglou@fao.org Food and Agriculture Organization (FAO) Luis E. Rincón luis.rincon@fao.org Food and Agriculture Organization (FAO)
oai:RePEc:kap:enreec:v:52:y:2012:i:1:p:87-1072020-08-08RePEc:kap:enreec
article The Welfare Effects of Environmental Taxation on a Green Market Where Consumers Emit a Pollutant Discrete–continuous model, Emission taxes, Environmental quality, Green market, Subsidies, Vertical differentiation, H23, L13, Q58, 1 2012 52 5 Environmental and Resource Economics 87 107 http://hdl.handle.net/10.1007/s10640-011-9521-7 text/html Access to full text is restricted to subscribers. Isamu Matsukawa matukawa@cc.musashi.ac.jp
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article Nick Hanley, Jason F. Shogren and Ben White, 2001, Introduction to Environmental Economics 4 2002 23 12 Environmental and Resource Economics 480 482 http://hdl.handle.net/10.1023/A:1021391911230 text/html Access to full text is restricted to subscribers. Jonathan Isham jisham@middlebury.edu
oai:RePEc:kap:enreec:v:38:y:2007:i:4:p:513-5252020-08-08RePEc:kap:enreec
article Resolving questions about bias in real and hypothetical referenda Experimental economics, Real referenda, Hypothetical referenda, Demand revelation, Hypothetical bias, Non-market valuation, C91, Q51, 4 2007 38 12 Environmental and Resource Economics 513 525 http://hdl.handle.net/10.1007/s10640-007-9095-6 text/html Access to full text is restricted to subscribers. Anthony Burton Katherine Carson Kate.Carson@usafa.af.mil Susan Chilton S.M.Chilton@ncl.ac.uk W. Hutchinson G.Hutchinson@qub.ac.uk
oai:RePEc:kap:enreec:v:34:y:2006:i:4:p:535-5632020-08-08RePEc:kap:enreec
article Product Market Integration and Environmental Policy Coordination in An International Duopoly We analyse the effect of product market integration on environmental policy incentives in an international duopoly, where national policy makers act strategically. If traditional trade policy instruments are not available, environmental policies will typically be determined by the interaction of conflicting policy incentives. Contrary to popular belief, we find that international product market integration, in this particular setting, might reduce the need for transnational policy coordination, both from a purely environmental and from a social welfare perspective. Copyright Springer 2006 product market integration, strategic environmental policy, policy coordination, F12, F15, F18, H23, 4 2006 34 8 Environmental and Resource Economics 535 563 http://hdl.handle.net/10.1007/s10640-006-0013-0 text/html Access to full text is restricted to subscribers. Odd Rune Straume odd.straume@econ.uib.no
oai:RePEc:kap:enreec:v:48:y:2011:i:2:p:161-1752020-08-08RePEc:kap:enreec
article Bringing Ecosystem Services into the Real World: An Operational Framework for Assessing the Economic Consequences of Losing Wild Nature Ecosystem services, Biodiversity, Ecosystem modeling, Benefits, Millennium ecosystem assessment, Scenarios, Conservation, Development, 2 2011 48 2 Environmental and Resource Economics 161 175 http://hdl.handle.net/10.1007/s10640-010-9413-2 text/html Access to full text is restricted to subscribers. Andrew Balmford Brendan Fisher bpfisher@princeton.edu Rhys Green Robin Naidoo Bernardo Strassburg R. Kerry Turner Ana Rodrigues
oai:RePEc:kap:enreec:v:31:y:2005:i:1:p:21-342020-08-08RePEc:kap:enreec
article Piercing the Veil of Uncertainty in Transboundary Pollution Agreements This paper addresses the question of how uncertainty in costs and benefits affects the difficulty of reaching a voluntary agreement among sovereign states. A measure of “difficulty” is constructed related to side-payments necessary to make an agreement a Pareto-improving move. Using a simple model, it is shown that uncertainty actually makes agreement easier. Copyright Springer 2005 international environmental agreements, pollution, side-payments, transboundary uncertainty, treaties, 1 2005 31 05 Environmental & Resource Economics 21 34 http://hdl.handle.net/10.1007/s10640-004-6980-0 text/html Access to full text is restricted to subscribers. Charles Kolstad kolstad@bren.ucsb.edu
oai:RePEc:kap:enreec:v:30:y:2005:i:1:p:115-1252020-08-08RePEc:kap:enreec
article Sustainable Development, Renewable Resources and Technological Progress Conflicts between optimality and sustainability are typical in the literature on sustainable development. Using the “capital-resource” growth model, Pezzey and Withagen (1998, Scandinavian Journal of Economics 100 (2), 513–527) have proved that if natural resources are exhaustible, the time-path of consumption is single-peaked, declining from some point in time onwards. This paper extends the model to include technical progress, resource renewability, extraction costs and population growth. The main result is that, for any constant returns to scale technology, optimal paths can be sustainable only if the social discount rate does not exceed the sum of the rates of resource regeneration and augmentation. The development of resource-saving techniques is crucial for sustaining consumption per capita in the long run, whereas capital depreciation and extraction costs are neutral with respect to this sustainability condition. Copyright Springer 2005 optimal growth, renewable resources, sustainable development, technological progress, 1 2005 30 1 Environmental & Resource Economics 115 125 http://hdl.handle.net/10.1007/s10640-004-2377-3 text/html Access to full text is restricted to subscribers. Simone Valente simone.valente@uniroma2.it
oai:RePEc:kap:enreec:v:32:y:2005:i:2:p:229-2392020-08-08RePEc:kap:enreec
article A Test for Parameter Homogeneity in CO 2 Panel EKC Estimations This paper casts doubt on empirical results based on panel estimations of an “inverted-U” relationship between per capita GDP and pollution. Using a new dataset for OECD countries on carbon dioxide emissions for the period 1960–1997, we find that the crucial assumption of homogeneity across countries is problematic. Decisively rejected are model specifications that feature even weaker homogeneity assumptions than are commonly used. Furthermore, our results challenge the existence of an overall Environmental Kuznets Curve for carbon dioxide emissions. Copyright Springer 2005 environmental Kuznets curves, heterogeneity, panel data, C33, O50, Q40, 2 2005 32 10 Environmental & Resource Economics 229 239 http://hdl.handle.net/10.1007/s10640-005-2776-0 text/html Access to full text is restricted to subscribers. Elbert Dijkgraaf Herman Vollebergh vollebergh@few.eur.nl
oai:RePEc:kap:enreec:v:51:y:2012:i:1:p:61-772020-08-08RePEc:kap:enreec
article Multi-Sector Model of Tradable Emission Permits Tradable emission permits, Initial allocation, Multi-sector model, Cournot oligopoly, Market power, Q58, L51, 1 2012 51 1 Environmental and Resource Economics 61 77 http://hdl.handle.net/10.1007/s10640-011-9488-4 text/html Access to full text is restricted to subscribers. Makoto Tanaka mtanaka@grips.ac.jp
oai:RePEc:kap:enreec:v:47:y:2010:i:1:p:111-1232020-08-08RePEc:kap:enreec
article A Comparison of Induced Value and Home-Grown Value Experiments to Test for Hypothetical Bias in Contingent Valuation Contingent valuation, Hypothetical bias, Experiments, Induced values, Home-grown values, C91, H41, Q26, Q28, 1 2010 47 9 Environmental and Resource Economics 111 123 http://hdl.handle.net/10.1007/s10640-010-9367-4 text/html Access to full text is restricted to subscribers. James Murphy murphy@uaa.alaska.edu Thomas Stevens Lava Yadav
oai:RePEc:kap:enreec:v:30:y:2005:i:2:p:131-1632020-08-08RePEc:kap:enreec
article Valuing Air Quality in Poland In this study we estimate how much Polish citizens would be willing to pay to harmonize Polish air pollution standards with EU standards. We conduct a contingent valuation of all damage components using a system of dichotomous choice questions. This system approach helps to avoid embedding problem and to identify protest voters. We compare estimates from a set of single logit models with a generalized estimating equations (GEE) model, which provides more parsimonious and efficient estimates. Although, health remains very important, our respondents valued mortality less than the literature but morbidity much more. Damages to ecosystems and cultural heritage compose 13–16% of the total value and their omission by the literature seriously underestimates total benefits. Overall, the results suggest that Poland values the benefits of pollution control much less than the wealthier EU suggesting harmonization should be postponed and conditioned on economic prosperity. Copyright Springer 2005 air pollution, EU enlargement, Poland, 2 2005 30 02 Environmental & Resource Economics 131 163 http://hdl.handle.net/10.1007/s10640-004-1515-2 text/html Access to full text is restricted to subscribers. Dominika Parry Dziegielewska dominika.parry@aya.yale.edu Robert Mendelsohn
oai:RePEc:kap:enreec:v:53:y:2012:i:2:p:279-2952020-08-08RePEc:kap:enreec
article Ecosystem Service Value and Agricultural Conversion in the Amazon: Implications for Policy Intervention We explore the welfare implications of agricultural expansion in the Brazilian Amazon by comparing spatially explicit estimates of soybean rents and the value of ecosystem services. Although these estimates are generated from different datasets, models, and estimation techniques, the values are comparable, such that the value of ecosystem services is greater than soybean rents for about 61% of the total area and 24% of the area where soybean rents are positive if protected areas are well enforced. Based on the balance between the benefits and costs of conversion, failure to value ecosystem services reduces total social welfare by 7.13 billion dollars annually relative to an optimum. Policy instruments that internalize the value of ecosystem services via protected lands, land conversion taxes, conservation subsidies, or excise taxes can avoid much of this loss. Regardless of intervention regime, policy makers should be cognizant of the diminishing net benefits of converting natural ecosystems to agriculture. Realizing the final 3.8% requires the conversion of an additional 15% natural ecosystems to soybean production. Copyright Springer Science+Business Media B.V. 2012 Ecosystem services, Agriculture, Land use policy, Tax policy, 2 2012 53 10 Environmental and Resource Economics 279 295 http://hdl.handle.net/10.1007/s10640-012-9562-6 text/html Access to full text is restricted to subscribers. Michael Mann mmann1123@gmail.com Robert Kaufmann Dana Bauer Sucharita Gopal James Baldwin Maria Del Carmen Vera-Diaz
oai:RePEc:kap:enreec:v:42:y:2009:i:1:p:53-642020-08-08RePEc:kap:enreec
article Wealth Accounting, Exhaustible Resources and Social Welfare Environmental accounting, Exhaustible resources, Genuine saving, Social welfare, Q01, Q03, 1 2009 42 1 Environmental and Resource Economics 53 64 http://hdl.handle.net/10.1007/s10640-008-9235-7 text/html Access to full text is restricted to subscribers. Kirk Hamilton khamilton@worldbank.org Giovanni Ruta
oai:RePEc:kap:enreec:v:17:y:2000:i:2:p:145-1622020-08-08RePEc:kap:enreec
article Agriculture, Natural Resources and Environmental Accounting In this paper, we develop atheoretically consistent framework to incorporate theenvironmental effects of agricultural production andthe depletion of natural capital caused byagricultural production into the existing incomeaccounts. We apply the framework and adjust theincome attributed to the agricultural sector andeconomy-wide net national product (NNP) for the UnitedStates. Estimated adjustments to the incomeattributed to agriculture are in the range of $4billion and have declined as a percentage of net farmincome since 1982. Copyright Kluwer Academic Publishers 2000 agriculture, natural resources, and environmental accounting, 2 2000 17 10 Environmental and Resource Economics 145 162 http://hdl.handle.net/10.1023/A:1008392511721 text/html Access to full text is restricted to subscribers. James Hrubovcak Michael LeBlanc B. Eakin
oai:RePEc:kap:enreec:v:57:y:2014:i:4:p:487-5042020-08-08RePEc:kap:enreec
article Environmental Quality, Public Debt and Economic Development This article analyzes the consequences on capital accumulation and environmental quality of environmental policies financed by public debt. A public sector of pollution abatement is financed by a tax or by public debt. We show that if the initial capital stock is high enough, the economy monotonically converges to a long-run steady state. On the contrary, when the initial capital stock is low, the economy is relegated to an environmental poverty trap. We also explore the implications of public policies on the trap and on the long-run stable steady state. In particular, we find that government should decrease debt and increase pollution abatement to promote capital accumulation and environmental quality at the stable long-run steady state. Finally, a welfare analysis shows that there exists a level of public debt that allows a long run steady state to be optimal. Copyright Springer Science+Business Media Dordrecht 2014 Environmental policies, Pollution abatement, Public debt, Economic development, Poverty trap, H23, H63, Q56, 4 2014 57 4 Environmental and Resource Economics 487 504 http://hdl.handle.net/10.1007/s10640-013-9639-x text/html Access to full text is restricted to subscribers. Mouez Fodha fodha@univ-paris1.fr Thomas Seegmuller thomas.seegmuller@univ-amu.fr
oai:RePEc:kap:enreec:v:58:y:2014:i:4:p:665-6822020-08-08RePEc:kap:enreec
article On Emissions Trading and Market Structure: Cap-and-Trade versus Intensity Standards This paper examines the interdependence between imperfect competition and emissions trading. We particularly analyze the long run equilibrium in a two-sector (‘clean’ and ‘dirty’) model with Cournot competition among firms who face a fixed cost of production. The clean sector is defined as the sector with the highest long run cost margin on emissions. We compare the welfare implications of a cap-and-trade scheme with an emissions trading scheme based on relative intensity standards. It is shown that a firm’s long run equilibrium output in the clean or dirty sector does not depend on the emissions trading format, but only depends on the fixed cost of producing in the respective sector. Intensity standards can result in clean firms selling allowances to dirty firms, or dirty firms selling to clean firms. The former outcome yields higher welfare. It is demonstrated that cap-and-trade outperforms the intensity-based trading scheme in terms of long run welfare with free entry and exit. With intensity standards the size of the clean sector is too large. Copyright Springer Science+Business Media Dordrecht 2014 Cap-and-trade, Emissions trading, Imperfect competition, Industrial change, Intensity standards, Pollution control, 4 2014 58 8 Environmental and Resource Economics 665 682 http://hdl.handle.net/10.1007/s10640-013-9715-2 text/html Access to full text is restricted to subscribers. Frans Vries f.p.devries@stir.ac.uk Bouwe Dijkstra bouwe.dijkstra@nottingham.ac.uk Matthew McGinty mmcginty@uwm.edu
oai:RePEc:kap:enreec:v:9:y:1997:i:1:p:65-812020-08-08RePEc:kap:enreec
article Tradeable emission permits regulations in the presence of imperfectly competitive product markets: Welfare implications In the present paper, we analyse the interaction of a competitive market for emission permits with an oligopolistic product market. It is well known that a competitive permits market achieves the cost minimizing distribution of abatement effort among the polluting firms for a given reduction in emissions. However, when the product market is oligopolistic, it may redistribute production inefficiently among firms. It has been suggested that this inefficiency can outweigh the gains obtained from using emission permits instead of command and control. Although this argument is clearly correct under full information, it is shown in the present paper that it reverses under incomplete information. In particular, it is shown that when tradeable emission permits are specified according to the standard textbook example, they yield higher social welfare than the command and control regulation. Copyright Kluwer Academic Publishers 1997 emission permits, oligopoly, welfare, 1 1997 9 1 Environmental & Resource Economics 65 81 http://hdl.handle.net/10.1007/BF02441370 text/html Access to full text is restricted to subscribers. Eftichios Sartzetakis
oai:RePEc:kap:enreec:v:19:y:2001:i:3:p:267-2842020-08-08RePEc:kap:enreec
article Efficient Climate Policy with Internationally Mobile Firms A major concern in the design of an incomplete climate agreement is thatfirms that use fossil fuels intensively may respond to emission regulationsby relocating their plants from cooperating to non-cooperating countries.This paper analyses how the cooperating countries might deal with the issueof firm delocation through emission taxes, trade provisions and alocalisation subsidy to mobile firms. It is shown that firms should not beinduced to stay in the cooperating countries by lowering emission taxesbelow the Pigouvian tax rate. Incentives to stay should be given partlythrough trade provisions and partly through a localisation subsidy. A secondbest solution without localisation subsidies is also discussed. In thatcase, the efficient emission tax is lower than the Pigouvian tax rate.Finally, the paper discusses the implications of the first best and thesecond best policy regimes for the pattern of firm localisation. Copyright Kluwer Academic Publishers 2001 climate policy, environmental tax, free-riders, internationally mobile firms, localisation subsidy, 3 2001 19 7 Environmental and Resource Economics 267 284 http://hdl.handle.net/10.1023/A:1011195125044 text/html Access to full text is restricted to subscribers. Ottar Mæstad Ottar.Maestad@snf.no
oai:RePEc:kap:enreec:v:33:y:2006:i:1:p:39-712020-08-08RePEc:kap:enreec
article Valuation and Management of Fishing Resources Under Price Uncertainty The traditional expected-net-present-value methods cannot properly capture the management flexibility and strategic value aspects of a fishery, and may understate its value. Instead, this paper develops a Real Options model to conceptualize and evaluate fishery exploitation flexibility. Specifically, general models to value the opportunity to either exploit or invest in a fishery are presented. They suffice to determine not only these values, but also the optimal policy for opening, closing, delaying and setting its harvest rate. The sustainable case in which the harvest rate equals the natural net growth function is also considered. Concerning the exploitation decision, it is found that, as could be expected, the higher the resource price the higher the value of this opportunity in both models (general and sustainable). However, the resource stock affects both models differently. As to the investment opportunity, its value is always lower than the exploitation opportunity because of investment costs. Finally, numerical simulations are run in order to illustrate the nature of the solution. Sensitivity analysis concerning the influence of the tax rate, convenience yield, risk-free interest rate and price volatility on the value of the fishery is also reported. Copyright Springer 2006 bioeconomic model, fishing resources, management flexibility, Real Options, G13, Q22, 1 2006 33 01 Environmental & Resource Economics 39 71 http://hdl.handle.net/10.1007/s10640-005-0591-2 text/html Access to full text is restricted to subscribers. Arantza Murillas José Manuel Chamorro jm.chamorro@ehu.es
oai:RePEc:kap:enreec:v:11:y:1998:i:3:p:521-5382020-08-08RePEc:kap:enreec
article Environmental Financing in European Economies in Transition The paper offers a perspective on environmental predicament of economies in transition. Emphasis is put on how these economies finance their environmental needs. It is observed that the demand for environmental financing can be affected both by environmental policy measures (such as internalization of externalities) and by other factors (such as the softness of budget constraints faced by firms). The role of subsidies – in many countries of the Central and Eastern European region provided through special purpose ‘environmental funds’ – is then scrutinized. In particular the question is asked whether such funds crowd out commercial capital from the market. Conditions are discussed that would allow the funds to play their constructive environmental roles without crowding out private financing. Copyright Kluwer Academic Publishers 1998 environmental project financing, economies in transition, 3 1998 11 4 Environmental and Resource Economics 521 538 http://hdl.handle.net/10.1023/A:1008220017910 text/html Access to full text is restricted to subscribers. Grzegorz Peszko Tomasz Żylicz* tzylicz@wne.uw.edu.pl
oai:RePEc:kap:enreec:v:17:y:2000:i:4:p:395-4082020-08-08RePEc:kap:enreec
article Resource Characteristics, Extraction Costs, and Optimal Exploitation of Mineral Resources This paper modifies the traditional theories ofnon-renewable resource exploitation where reserve sizeis assumed to be the major determinant of extractioncosts. In a competitive model of resourceexploitation, characteristics of aggregate reservesare considered as a determinant of extraction cost. Then dynamic solutions for the price and exploratoryefforts are developed. Various price paths arefeasible under different assumptions with regard tothe changes in the reserve characteristics over time. Past empirical research shows that there is noconsistent price path for all materials. In fact, itis the quality of newly discovered reserves as well astheir size that has affected material prices. Todemonstrate the complexity of a firm's decision torecover mineral from new deposits, potentials forsubstantial high quality marine mineral resources areevaluated as a substitute for land-based resources.However, several factors including the decreasingtrend in marine mining R & D expenditures and thepotential impact of large-scale marine mining on priceof minerals indicate that mining of mostnon-hydrocarbon marine minerals will not take place inthe near future. Copyright Kluwer Academic Publishers 2000 cost function, marine resources, resource quality, 4 2000 17 12 Environmental and Resource Economics 395 408 http://hdl.handle.net/10.1023/A:1026566931709 text/html Access to full text is restricted to subscribers. A. Marvasti marvasti@dt.uh.edu
oai:RePEc:kap:enreec:v:54:y:2013:i:2:p:283-2912020-08-08RePEc:kap:enreec
article Convergence in Per Capita Carbon Dioxide Emissions Among G7 Countries: A TAR Panel Unit Root Approach The subject of this paper is the examination the convergence of per capita carbon dioxide emissions of the G7 countries during the 1960–2005 period in a nonlinear panel analysis framework. In this approach, first the linearity of the series was tested, and when the linearity was rejected, the threshold autoregressive (TAR) panel unit root test, which splits the data into two regimes, was employed to examine the stationarity properties of the series. Because the null of linearity was rejected in the first step, we tested the stationarity of the series using the TAR panel unit root test. In the TAR panel unit root test, we found that the United Kingdom was the transition country whose per capita carbon dioxide (CO 2 ) emissions determined the switch from one regime to the other. The results showed that convergence existed in the first regime and divergence, in the second. When we tested whether absolute or conditional convergence existed, we found that the per capita CO 2 emissions were conditionally converging in the first regime. Copyright Springer Science+Business Media B.V. 2013 Carbon dioxide emissions, Convergence, G7 countries, Nonlinearity, Threshold autoregressive panel unit root test, 2 2013 54 2 Environmental and Resource Economics 283 291 http://hdl.handle.net/10.1007/s10640-012-9595-x text/html Access to full text is restricted to subscribers. Nilgun Yavuz yavuznc@istanbul.edu.tr Veli Yilanci yilanci@istanbul.edu.tr
oai:RePEc:kap:enreec:v:54:y:2013:i:3:p:419-4412020-08-08RePEc:kap:enreec
article Depletion: Bridging the Gap Between Theory and Practice Adjusting national income for depletion is important in order to send correct signals to policy makers. This article reviews a number of depletion measures that have been recently brought forward in the context of environmental accounting (‘practice’) and green accounting (‘theory’): depletion as change in total wealth; depletion as ‘using up’ of the resource; depletion as net savings; or, depletion as net investment. The differences in assumptions between these measures are clarified by contrasting their approaches with the classic theory of a firm engaged in extraction. All measures are evaluated using a time series of data on Dutch natural gas reserves. Our main findings are that correcting for the cost of depletion would lead to significant adjustments of both level and growth rates of Dutch net national income, with a strong dependency on the chosen measure.We counter criticism that accounting in practice would necessarily underestimate depletion. The choice for a depletion measure should be determined by the context of use: measurement of social welfare or sustainable income. The physical measure put forward in the SEEA Central Framework can be justified by its consistency with the income concept that underlies the SNA. Copyright Springer Science+Business Media B.V. 2013 Capital gains, Depletion, Environmental accounting, Genuine saving, Green accounting, Hicksian income, Non-renewable resources, Social welfare, 3 2013 54 3 Environmental and Resource Economics 419 441 http://hdl.handle.net/10.1007/s10640-012-9601-3 text/html Access to full text is restricted to subscribers. Bram Edens b.edens@cbs.nl
oai:RePEc:kap:enreec:v:8:y:1996:i:3:p:293-3142020-08-08RePEc:kap:enreec
article International bargaining in the presence of global environmental change This model deals with the greenhouse effect, that is to say with a problem of international pollution. Through a description of the bargaining process, it aims to determine the different forms that may be taken by cooperation agreements between the countries involved. We demonstrate, in particular, that under some conditions it is always possible for the countries to reach an agreement. Such agreements are the work of a group of so-called ‘leader countries’ characterized by their commitment in favour of cooperation. These leader countries use transfers to induce other countries to join them, but they can be insufficiently attractive to convince all the countries to cooperate. So as we show in the discussion, the cooperation is not necessarily total. Therefore, the key of a common problem can be a partial cooperation and not necessarily a common cooperation. Copyright Kluwer Academic Publishers 1996 greenhouse effect, bargaining, commitment, transfers, OECD, developing countries, cooperation, 3 1996 8 10 Environmental & Resource Economics 293 314 http://hdl.handle.net/10.1007/BF00339079 text/html Access to full text is restricted to subscribers. Gilles Rotillon Tarik Tazdaït
oai:RePEc:kap:enreec:v:47:y:2010:i:2:p:275-2972020-08-08RePEc:kap:enreec
article Alternative Approaches to Cost Containment in a Cap-and-Trade System Cost containment, Safety valve, Price collar, Climate change, 2 2010 47 10 Environmental and Resource Economics 275 297 http://hdl.handle.net/10.1007/s10640-010-9377-2 text/html Access to full text is restricted to subscribers. Harrison Fell fell@rff.org Richard Morgenstern morgenst@rff.org
oai:RePEc:kap:enreec:v:62:y:2015:i:3:p:433-4552020-08-08RePEc:kap:enreec
article Experimental Design Criteria and Their Behavioural Efficiency: An Evaluation in the Field Comparative results from an evaluation of inferred attribute non-attendance are provided for experimental designs optimised for three commonly employed statistical criteria, namely: orthogonality, Bayesian D-efficiency and optimal orthogonality in the difference. Survey data are from a choice experiment used to value the conservation of threatened native species in New Zealand’s production forests. In line with recent literature, we argue that attribute non-attendance can be taken as one of the important measures of behavioural efficiency. We focus on how this varies when alternative design criteria are used. Attribute non-attendance is inferred using an approach based on constrained latent classes. Given our proposed criterion to evaluate behavioural efficiency, our data indicate that the Bayesian D-efficiency criterion provides behaviourally more efficient choice tasks compared to the other two criteria. Copyright Springer Science+Business Media Dordrecht 2015 Attribute non-attendance, Choice experiment, Experimental design, Latent class logit model, Production forests, Threatened native species, 3 2015 62 11 Environmental and Resource Economics 433 455 http://hdl.handle.net/10.1007/s10640-014-9823-7 text/html Access to full text is restricted to subscribers. Richard Yao richard.yao@scionresearch.com Riccardo Scarpa ric.scarpa@gmail.com John Rose John.Rose@unisa.edu.au James Turner james.turner@agresearch.co.nz
oai:RePEc:kap:enreec:v:3:y:1993:i:1:p:73-952020-08-08RePEc:kap:enreec
article An econometric analysis of consumer demand for ivory and rhino horn In this paper an econometric model is used to describe consumer demand for ivory and rhino horn in Japan, using the Hendry research methodology. The demand for ivory in Japan, a final consumer, was found to be primarily income-led, with an elasticity of 0.75. International trade restrictions have had a profound effect on the ivory market since 1985. The data for rhino horn demand are less good, consisting of a time series for Japan before 1980, when international trade in rhino horn became illegal. However, analysis suggests that demand for rhino horn was also primarily income-led, with unit elasticity. Copyright Kluwer Academic Publishers 1993 Ivory, rhino horn, demand, econometric analysis, CITES, Japan, 1 1993 3 2 Environmental & Resource Economics 73 95 http://hdl.handle.net/10.1007/BF00338321 text/html Access to full text is restricted to subscribers. E. Milner-Gulland
oai:RePEc:kap:enreec:v:58:y:2014:i:4:p:649-6642020-08-08RePEc:kap:enreec
article Information Provision by Interest Groups We investigate interest groups’ incentives to inform consumers about the damaging practices of firms and the impact such an IG has on firms’ technology choices. The IG aims to reduce the production of some bad, say pollution. It can at a cost investigate firms’ production practices and inform consumers about its findings. Since consumers care about the environment, revealing differences in pollution levels between firms leads to vertical product differentiation. The information, by shifting sales from ‘dirty’ towards ‘clean’ firms, reduces pollution. We show that the IG is most inclined to investigate firms in relatively competitive industries and that the threat of being unmasked as a polluter prompts dirty firms to adopt a clean technology. Copyright Springer Science+Business Media Dordrecht 2014 Green preferences, Information disclosure, Interest groups, Pollution, D80, L10, L31, 4 2014 58 8 Environmental and Resource Economics 649 664 http://hdl.handle.net/10.1007/s10640-013-9714-3 text/html Access to full text is restricted to subscribers. Allard Made a.van.der.made@rug.nl
oai:RePEc:kap:enreec:v:56:y:2013:i:1:p:131-1392020-08-08RePEc:kap:enreec
article Resource Rights and Markets in a General Equilibrium Model of Production Rights to a free resource lead to distributional deadweight losses in partial equilibrium. The present paper examines related distortions in a general equilibrium model of production with output prices constant for the small open economy. The free resource can result in lower output than a market with weak substitution in the other sector. The free resource also leads to a convex production frontier implying a price increase lowers output in the sector. Regarding policy, an import tariff, export subsidy, or price support would lower sector output. These general equilibrium distortions increase the incentives to favor resource markets over rights. Copyright Springer Science+Business Media Dordrecht 2013 Free resource, Water rights, General equilibrium, Q20, Q30, D50, 1 2013 56 9 Environmental and Resource Economics 131 139 http://hdl.handle.net/10.1007/s10640-013-9656-9 text/html Access to full text is restricted to subscribers. Henry Thompson thomph1@auburn.edu
oai:RePEc:kap:enreec:v:24:y:2003:i:3:p:197-2122020-08-08RePEc:kap:enreec
article Environmental Satellite Models for a Macroeconomic Model To support national environmental policy, it is desirable to forecast and analyse environmental indicators consistently with economic variables. However, environmental indicators are physical measures linked to physical activities that are not specified in economic models. One way to deal with this is to develop environmental satellite models linked to economic models. The system of models presented gives a frame of reference where emissions of greenhouse gases, acid gases, and leaching of nutrients to the aquatic environment are analysed in line with – and consistently with – macroeconomic variables. This paper gives an overview of the data and the satellite models. Finally, the results of applying the model system to calculate the impacts on emissions and the economy are reviewed in a few illustrative examples. The models have been developed for Denmark; however, most of the environmental data used are from the CORINAIR system implemented in numerous countries. Copyright Kluwer Academic Publishers 2003 acidification, agriculture, emission, energy, environmental modelling and Forecasting, greenhouse gases, macroeconomic model, 3 2003 24 3 Environmental and Resource Economics 197 212 http://hdl.handle.net/10.1023/A:1022912308154 text/html Access to full text is restricted to subscribers. Frits Møller frits.m.andersen@risoe.dk Dorte Grinderslev Morten Werner
oai:RePEc:kap:enreec:v:23:y:2002:i:1:p:85-1032020-08-08RePEc:kap:enreec
article Efficient Environmental Policy with Imperfect Compliance Discussions of efficient environmental policytend to recommend taxes rather than quotas ongrounds of efficiency; a uniform tax willequalize marginal abatement cost betweenpolluters. When polluters' actions are imperfectly observable, the distinction betweentaxes and quotas becomes less clear. Taxes maybe evaded by underreporting of emissions, whilequota violations will not always be discovered.This paper explores the conditions under whichthe efficiency properties of taxes continue tohold even when evasion is possible, and theextent to which the fine for quota violationsplays the same role as a tax on emissions withsimilar efficiency properties. Copyright Kluwer Academic Publishers 2002 compliance, efficiency, pollution, quotas, taxes, 1 2002 23 9 Environmental and Resource Economics 85 103 http://hdl.handle.net/10.1023/A:1020236324130 text/html Access to full text is restricted to subscribers. Agnar Sandmo agnar.sandmo@nhh.no
oai:RePEc:kap:enreec:v:61:y:2015:i:1:p:19-352020-08-08RePEc:kap:enreec
article Restoration of a Depleted Transboundary Fishery Subject to Climate Change: A Dynamic Investment Under Uncertainty with Information Updates We model the evolution of a trans-boundary marine fishery, which is based on the harvesting of a single “highly-migratory” stock and is beginning to be impacted by regional oceanic-climate changes. The fish-stock’s range will be composed of a number of jurisdictional zones: namely, its intersection with the EEZ of each coastal country for which that intersection is non-trivial. There may also be a zone within international waters of the high seas. We also assume that management of the fishery is vested in a Regional Fishery Management Organization, whose members are countries that are “direct stakeholders” in the fishery—being either one of the above countries with jurisdictional authority in a zone or a country that has registered fishing vessels that are licensed to harvest in the fishery, or both. Our primary intended audience for the article includes the RFMO member-countries’ representatives, who participate directly in negotiations over RFMO policies, and also the RFMO’s scientific staff. Oceanic-climate changes are poorly predictable, but there will be periodic updates to enhance the available estimates. Consequently we believe that the RFMO’s efforts to cope with these changes would be helped by developing, as a tool, a certain type of a priori dynamic model, which could explore alternative long-time evolution paths for the bioeconomics of the fishery. The model should examine the immediate decisions made by the RFMO, and various possible long-term outcomes as these short-term decisions accumulate. Furthermore the model should be updated periodically, especially after new updated oceanic-climate predictions become available. In the article we work out a relatively simple example model, of an idealized fishery which is attempting to cope with a deteriorating oceanic-climate environment. But we also explain why (and in what ways) each particular real-world fishery’s staff needs to modify this generic example, to more closely match its own unique characteristics. Copyright Springer Science+Business Media Dordrecht 2015 Stock recovery, Transboundary fishery, Investment, Bioeconomics, Multinational management, Renewable resources, 1 2015 61 5 Environmental and Resource Economics 19 35 http://hdl.handle.net/10.1007/s10640-014-9854-0 text/html Access to full text is restricted to subscribers. Robert McKelvey Peter Golubtsov pgolubtsov@gmail.com
oai:RePEc:kap:enreec:v:48:y:2011:i:4:p:629-6492020-08-08RePEc:kap:enreec
article (In)Efficient Environmental Policy with Interacting Pollutants Climate change, Cost-benefit analysis, Eutrophication, Multiple pollutants, Optimal environmental policy, Pollution control, 4 2011 48 4 Environmental and Resource Economics 629 649 http://hdl.handle.net/10.1007/s10640-010-9417-y text/html Access to full text is restricted to subscribers. Timo Kuosmanen timo.kuosmanen@aalto.fi Marita Laukkanen marita.laukkanen@mtt.fi
oai:RePEc:kap:enreec:v:12:y:1998:i:1:p:25-512020-08-08RePEc:kap:enreec
article International Equity and Differentiation in Global Warming Policy ne of the major obstacles to reaching a comprehensive agreement on global warming is the setting of greenhouse gas emission reduction targets for individual countries. Long-standing tensions between industrialized and developing countries have raised the issue of equity in burden-sharing. Moreover, individual industrialized nations have pleaded special circumstances and have sought differentiation in their obligations. This paper analyzes alternative rules for distributing tradable carbon dioxide emissions permits. A non-linear programming model, which distinguishes between allocation-based and outcome-based rules, is used to analyze the relative welfare outcomes. The model is applied to the world body of nations and yields several important policy implications. Copyright Kluwer Academic Publishers 1998 global warming, tradeable permits, equity, non-linear programming, 1 1998 12 7 Environmental and Resource Economics 25 51 http://hdl.handle.net/10.1023/A:1008262407777 text/html Access to full text is restricted to subscribers. Adam Rose Brandt Stevens Jae Edmonds Marshall Wise
oai:RePEc:kap:enreec:v:53:y:2012:i:2:p:185-2022020-08-08RePEc:kap:enreec
article Informational Benefits of International Treaties International treaties allow a minister in one country to learn about the beliefs held by a minister in another country, so allowing each to make better decisions. When the net benefits of environmental policy are uncertain, a country which participates in negotiating an environmental treaty, or which supports strong environmental action, thereby provides information to another country that such action can be worthwhile. This dimension of international environmental agreements helps explain why countries negotiate treaties, why these treaties often implement the Nash non-cooperative equilibrium, why agreement to a treaty by a country deemed not particularly favorable to it can strengthen environmental action, and why treaties may invoke a minimum participation clause. The informational mechanism we discuss holds even if physical spillovers are absent, and even if monitoring and enforcement are infeasible. Our approach can explain additional phenomena: how requirements for approval by several bodies within a country can increase support for a policy, and why simultaneous action can lead to better outcomes than sequential action. Copyright Springer Science+Business Media B.V. 2012 Environmental policy, International agreements, Signaling, Global warming, Ozone, Q58, D82, L51, 2 2012 53 10 Environmental and Resource Economics 185 202 http://hdl.handle.net/10.1007/s10640-012-9555-5 text/html Access to full text is restricted to subscribers. Amihai Glazer aglazer@uci.edu Stef Proost Stef.proost@econ.kuleuven.be
oai:RePEc:kap:enreec:v:37:y:2007:i:3:p:489-5192020-08-08RePEc:kap:enreec
article Economic Incentives and Residential Waste Management in Taiwan: An Empirical Investigation This paper presents an empirical study of how three waste management policies have affected residential waste generation and recycling behavior in Taiwan over the past decade. The three policies are unit-pricing of garbage in Taipei, a mandatory recycling program in Kaohsiung, and a nationwide policy of charging for plastic bags. We estimate policy effects on total waste, total recycling, and recycling of four specific materials, all measured by weight per capita. Unlike prior work, we find that unit-pricing and mandatory recycling policies lead to significant increases in recycling of most materials, as well as increased levels of total recycling and garbage reduction. The “plastic bag” policy is generally found to lower material-specific and total recycling rates, as well as total garbage volumes. Copyright Springer Science+Business Media, Inc. 2007 recycling, solid waste management, unit pricing, 3 2007 37 7 Environmental and Resource Economics 489 519 http://hdl.handle.net/10.1007/s10640-006-9040-0 text/html Access to full text is restricted to subscribers. Hai-Lan Yang Robert Innes innes@cals.arizona.edu
oai:RePEc:kap:enreec:v:26:y:2003:i:3:p:417-4282020-08-08RePEc:kap:enreec
article Local Pollution in Federal Systems It is widely accepted that decentralized control of local pollution is inefficient if the central and the local authorities are imperfectly informed. This paper shows how the central authority can introduce a flexible grant-in-aid system that induces the local authority to use a weighted combination of local and central information when the local authority suffers from confirmatory bias. If the central authority is highly uncertain about the environmental effects of a specific pollutant, the tax/subsidy scheme can be designed to allow local information to play an essential role in the environmental policy. If the central authority is certain that a pollutant must not exceed a specific limit, the tax/subsidy scheme can be designed to allow local information little influence on the environmental policy. Copyright Kluwer Academic Publishers 2003 central information, federal systems and local information, 3 2003 26 11 Environmental and Resource Economics 417 428 http://hdl.handle.net/10.1023/B:EARE.0000003596.02533.81 text/html Access to full text is restricted to subscribers. Per Andersen pan@sam.sdu.dk Frank Jensen fje@sam.sdu.dk
oai:RePEc:kap:enreec:v:22:y:2002:i:4:p:505-5202020-08-08RePEc:kap:enreec
article Biodiversity and Optimal Policies Towards R&D and the Growth of Genetically Modified Crops In this paper we provide a simple model illustrating the possible nature ofgovernment policy with regards to genetic modification, taking into accountits impact on the environment. We show that it is necessary not only tointervene in the growing of crops, but also to intervene in R&D througha tax on the adoption of new GM technology. Without intervention at bothlevels, both the cultivation of GM crops and the rate of innovation in GM willexceed their socially optimal levels. Copyright Kluwer Academic Publishers 2002 biodiversity, crops, optimal R&D, 4 2002 22 8 Environmental and Resource Economics 505 520 http://hdl.handle.net/10.1023/A:1019843425947 text/html Access to full text is restricted to subscribers. Alistair Ulph amu@soton.ac.uk Lucy O'Shea l.c.m.oshea@reading.ac.uk
oai:RePEc:kap:enreec:v:40:y:2008:i:2:p:165-1762020-08-08RePEc:kap:enreec
article How Much is Too Much? Attribute levels, Choice experiment, Context dependence, Length, Power outages, C25, D12, Q41, 2 2008 40 6 Environmental and Resource Economics 165 176 http://hdl.handle.net/10.1007/s10640-007-9146-z text/html Access to full text is restricted to subscribers. Fredrik Carlsson fredrik.carlsson@economics.gu.se Peter Martinsson peter.martinsson@economics.gu.se
oai:RePEc:kap:enreec:v:61:y:2015:i:2:p:127-1402020-08-08RePEc:kap:enreec
article Densities Rather than Shares: Improving the Measurement of Congestion in Recreation Demand Models While economists have successfully addressed the endogeneity of congestion in revealed preference approaches, little attention has been devoted to measuring congestion. In fact, most applications measure congestion as a simple count of users or, at best, consider the shares of users, defined as the proportion of people visiting a site during the course of the season. However, only when all sites have a similar size or length and the total number of visitors is constant over time, can these measures be used as a proxy for congestion. In general, these assumptions are unrealistic. In this paper we examine site density measures rather than participation shares as a measure of congestion. We show that endogeneity problems can be addressed using a control function approach and demonstrate that the density of users leads to more statistically significant coefficients of congestion. Copyright Springer Science+Business Media Dordrecht 2015 Beaches, Congestion, Control function, Endogeneity, Recreation demand, Travel cost method, 2 2015 61 6 Environmental and Resource Economics 127 140 http://hdl.handle.net/10.1007/s10640-014-9785-9 text/html Access to full text is restricted to subscribers. Angel Bujosa angel.bujosa@uib.es Antoni Riera Robert Hicks Kenneth McConnell
oai:RePEc:kap:enreec:v:32:y:2005:i:3:p:407-4172020-08-08RePEc:kap:enreec
article Absentee Ownership of Immobile Factors and Environmental Policies in a Federation This paper studies the effects of absentee ownership of immobile factors on environmental policy of a jurisdiction in a federation. An increase in emissions in a jurisdiction increases factor incomes, but part of the increased factor incomes goes to absentee owners while only the residents of the jurisdiction bear the full disutility. In addition, the increase in emissions in a jurisdiction attracts capital and decreases capital in other jurisdictions, reducing the incomes that the residents of the jurisdiction earn from owning immobile factors in other jurisdictions. Absentee ownership thus reduces the marginal benefit of an increase in emissions while it leaves the marginal cost unaffected from the jurisdiction’s perspective. As a consequence, absentee ownership makes environmental policy of a jurisdiction too stringent relative to the efficient level. The paper also considers the effects of absentee ownership on environmental policy when goods trade is allowed. Copyright Springer 2005 environmental competition, factors of production, ownership structure, trade, H71, H73, Q28, 3 2005 32 11 Environmental & Resource Economics 407 417 http://hdl.handle.net/10.1007/s10640-005-6904-7 text/html Access to full text is restricted to subscribers. Kangoh Lee klee@towson.edu
oai:RePEc:kap:enreec:v:49:y:2011:i:1:p:121-1462020-08-08RePEc:kap:enreec
article A Mixed Logit Approach to Study Preferences for Safety on Alpine Roads This paper presents a mixed logit approach to the valuation of reductions in mortality risk on Alpine roads. In addition to common road accidents, users of these roads face risks from natural hazards such as avalanches and rockfalls. Moreover, the individual risk of road users varies with the frequency of their exposure. Drawing on choice experimental data of frequently exposed respondents from a mountainous region and less frequently exposed respondents from a city in Switzerland, we are able to estimate the value of statistical life (VSL). Furthermore, we explore how respondents differ in their individual willingness-to-pay depending on exposure and other individual characteristics. Our estimates of the VSL in the context of fatal accidents on Alpine roads are in the range of CHF 6.0–7.8 million (€3.9–5.1 million). We find the VSL to be dependent on socio-economic and perceptional factors but to be not significantly altered by the type of hazard. These findings imply that the VSL might be adjusted to account for heterogonous risk preferences of different societal groups, but there is no evidence of a ‘dread’ premium for natural hazards. Copyright Springer Science+Business Media B.V. 2011 Mortality risk, Value of statistical life, Natural and man-made hazards, Mixed logit model, Preference heterogeneity, D81, J17, R42, 1 2011 49 5 Environmental and Resource Economics 121 146 http://hdl.handle.net/10.1007/s10640-010-9427-9 text/html Access to full text is restricted to subscribers. Christoph Rheinberger crheinbe@univ-tlse1.fr
oai:RePEc:kap:enreec:v:17:y:2000:i:2:p:195-2022020-08-08RePEc:kap:enreec
article Overcompliance and Voluntary Agreements Voluntary agreements with industry offer many examplesof overcompliance with respect to environmentalstandards. Such phenomena seem to be irrational butappear less surprising considering firms' strategiesare aimed to internalise environmental quality. Wemodel the choice of the environmental quality ofproducts in a one-shot game between a monopolist andconsumers, to show the existence of inefficientequilibria where quality is low because of moralhazard. The firm can, however, change its' equilibriumstrategy in a repeated but finite game, in order tobuild an environmental reputation if we suppose thatconsumers' information is not only imperfect withregard to quality, but also incomplete with respect toany environmental constraint that may affect thebehaviour of firms (like the threat either of astricter regulation or of potential entry). In atwo-period model, we show the existence of a perfectBayesian equilibrium in mixed strategies where thefirm can revert to the production of green products inorder to influence consumers' beliefs and acquire anenvironmentally friendly reputation. Due to thepeculiarity of environmental information (greenproducts are credence goods), we claim that anexplicit agreement is also necessary in order toestablish monitoring and controlling procedures toverify the performance of firms. These procedures canexplain per se the diffusion of voluntary agreementsthat are nevertheless self-enforcing because of thereputation effect. Copyright Kluwer Academic Publishers 2000 voluntary agreements, reputation, product quality, asymmetric information, repeated games, environmental policy, 2 2000 17 10 Environmental and Resource Economics 195 202 http://hdl.handle.net/10.1023/A:1008322406871 text/html Access to full text is restricted to subscribers. Alberto Cavaliere cavalier@unipv.it
oai:RePEc:kap:enreec:v:3:y:1993:i:6:p:533-5432020-08-08RePEc:kap:enreec
article Some notes on trichotomous choice discrete valuation For some respondents, the bid offered by the dichotomous choice format used in the discrete choice technique can in fact be the true optimum. In this case the correct answer is neither ‘yes’ or ‘no’, but ‘indifferent’. We shall show results from a trichotomous choice format and analyse whether it produces welfare measures with narrower confidence intervals than the dichotomous technique. Another well known problem in contingent valuation (CV) studies is that the volume of the good to be purchased from hypothetical markets is not, in many cases, defined in precise terms. We show how the trichotomous choice technique can be used to test for possible vagueness in the volume of the project to be valued. Copyright Kluwer Academic Publishers 1993 Contingent valuation, dichotomous choice, trichotomous choice, supply vagueness, 6 1993 3 12 Environmental & Resource Economics 533 543 http://hdl.handle.net/10.1007/BF00364058 text/html Access to full text is restricted to subscribers. Rauli Svento
oai:RePEc:kap:enreec:v:13:y:1999:i:1:p:45-572020-08-08RePEc:kap:enreec
article On the Optimal Exploitation of Terrestrial Animal Species The paper analyses the social optimal management of terrestrial animal species where land-use costs, non-consumptive benefits of the wild species and nuisance costs, in addition to harvesting profit, are taken into account. When there is harvesting, it is demonstrated that increased profitability of the alternative land-use activities will result in less animals and habitat land in the long-term. It is also shown that the price effect of the harvesting works different compared to the traditional Clark-model of marine resources. Because most terrestrial species represent no harvesting profit and are not harvested, the non-harvesting case is also analysed. Also now will improved profitability in the competing activities of keeping animals be a threat to the wild species as it triggers land-use conversion. Moreover, in absence of harvesting profit, there are no potential counteracting forces due to the existence of harvesting profit. Copyright Kluwer Academic Publishers 1999 bioeconomic modeling, optimal exploitation, terrestrial species, 1 1999 13 1 Environmental and Resource Economics 45 57 http://hdl.handle.net/10.1023/A:1008261206811 text/html Access to full text is restricted to subscribers. Anders Skonhoft anders.skonhoft@sv.ntnu.no
oai:RePEc:kap:enreec:v:27:y:2004:i:4:p:409-4272020-08-08RePEc:kap:enreec
article Green Accounting for an Externality, Pollution at a Mine This paper takes a value-added approach to ``green''accounting at an individual microeconomic unit, a mine. Capacities forextraction and for abatement of pollution are chosen subject to anenvironmental regulation. The implications for accounting for resource andenvironmental degradation are discussed. Depreciation is not quantitativelyunique, but can be compared qualitatively with a condition involving shadowprices. The costs of defensive expenditures contribute to increasing greenNNP, but depreciation of the resource is a charge against GNP in computinggreen NNP. Income from capital is the return on the undepreciated values ofextractive capacity, abatement capacity and the resource, and is a part ofnet domestic income. Copyright Kluwer Academic Publishers 2004 compliance cost, depreciation, green accounting, pollution, 4 2004 27 4 Environmental and Resource Economics 409 427 http://hdl.handle.net/10.1023/B:EARE.0000018519.31028.97 text/html Access to full text is restricted to subscribers. Robert Cairns robert.cairns@mcgill.ca
oai:RePEc:kap:enreec:v:31:y:2005:i:4:p:405-4302020-08-08RePEc:kap:enreec
article Methods for Environmental and Economic Accounting for the Exploitation of Wild Fish Stocks and their Applications to the Case of Icelandic Fisheries commercial fisheries, cost of exploitation, environmental national accounting, Icelandic fisheries, value of fish stocks, 4 2005 31 08 Environmental & Resource Economics 405 430 http://hdl.handle.net/10.1007/s10640-005-2176-5 text/html Access to full text is restricted to subscribers. Ásgeir Daníelsson asgeir.danielsson@sedlabanki.is
oai:RePEc:kap:enreec:v:51:y:2012:i:1:p:119-1402020-08-08RePEc:kap:enreec
article Willingness to Pay for Ancillary Benefits of Climate Change Mitigation Willingness to Pay, Contingent valuation, Ancillary benefits, Climate change, Q51, 1 2012 51 1 Environmental and Resource Economics 119 140 http://hdl.handle.net/10.1007/s10640-011-9491-9 text/html Access to full text is restricted to subscribers. Alberto Longo a.longo@qub.ac.uk David Hoyos david.hoyos@ehu.es Anil Markandya anil.markandya@bc3research.org
oai:RePEc:kap:enreec:v:18:y:2001:i:3:p:251-2732020-08-08RePEc:kap:enreec
article Substitution Possibility between Unpriced Pulp and Wastepaper in the U.S. Paper and Paperboard Industry A greater use of recycled wastepaper would preserve virgin forests as well as reducing the amount of wastepaper going to landfills. These environmental goals depend critically on the elasticity of substitution between pulp and wastepaper in producing paper and paperboard. Since most of the pulp consumed by U.S. paper mills and paperboard mills is transferred internally from vertically integrated pulp mills, the price data on pulp is not available. This paper constructs an econometric model which enables us to estimate the substitution possibility between unpriced pulp and wastepaper in the U.S. paper and paperboard industry. Empirical results show that the elasticity of substitution between unpriced pulp and wastepaper is positive, but not statistically significant. Copyright Kluwer Academic Publishers 2001 elasticity of substitution, paper industry, unpriced pulp, wastepaper, 3 2001 18 3 Environmental and Resource Economics 251 273 http://hdl.handle.net/10.1023/A:1011111732108 text/html Access to full text is restricted to subscribers. Myunghun Lee mhlee@kmucc.keimyung.ac.kr Hwan-Ok Ma
oai:RePEc:kap:enreec:v:30:y:2005:i:3:p:243-2572020-08-08RePEc:kap:enreec
article Competition in Markets for Depletable Resources with Setup Costs This paper analyzes the impact on exhaustible resource markets of setup costs, a sparsely analyzed category of nonconvex production technologies. This paper proves that, even under idealized circumstances for competition, a competitive equilibrium will fail to exist in the presence of setup costs, for any utility and cost functions such that a planner would exploit exhaustible resource pools sequentially. Copyright Springer 2005 competitive equilibrium, natural resources, non-convexities, setup costs, shutdown costs, 3 2005 30 03 Environmental & Resource Economics 243 257 http://hdl.handle.net/10.1007/s10640-004-1516-1 text/html Access to full text is restricted to subscribers. Carolyn Fischer fischer@rff.org
oai:RePEc:kap:enreec:v:63:y:2016:i:2:d:10.1007_s10640-015-9883-32020-08-08RePEc:kap:enreec
article Development Aid and Climate Finance Abstract This paper discusses the implications of climate change for official transfers from rich countries (the North) to poor countries (the South) when the motivation for transfers is ethical rather than strategic. Traditional development transfers to increase income and reduce poverty are complemented by new financial flows to reduce greenhouse gas emissions (mitigation transfers) and become climate-resilient (adaptation transfers). We find that in the absence of barriers to adaptation, mitigation or development, climate change will make isolated transfers less efficient: A large part of their intended effect (to increase income, reduce emissions, or boost climate-resilience) dissipates as the South reallocates its own resources to achieve the mitigation, adaptation and consumption balance it prefers. Only in the case of least-developed countries, which are unable to adapt fully due to income constraints, will adaptation support lead to more climate resilience. In all other cases, if the North wishes to change the balance between mitigation, adaptation and consumption it should structure its transfers as “matching grants”, which are tied to the South’s own level of funding. Alternatively, the North could provide an integrated “climate-compatible development” package that recognizes the combined climate and development requirements of the South. If the aim is to increase both mitigation and adaptation in the South, development assistance that increases the income level, can be an effective measure, but only if there is an international agreement and the recipient country is not income constrained. If the recipient country is very poor, development aid may reduce adaptation effort. Inequality aversion, Mitigation, Adaptation, Climate finance, Development assistance, Institutional barriers 2 2016 63 2 12 Environmental and Resource Economics 429 450 D63 Q50 Q54 Q56 http://link.springer.com/10.1007/s10640-015-9883-3 text/html Abstract Johan Eyckmans KU Leuven Campus Brussels Sam Fankhauser s.fankhauser@lse.ac.uk London School of Economics Snorre Kverndokk Ragnar Frisch Centre for Economic Research
oai:RePEc:kap:enreec:v:4:y:1994:i:5:p:527-5342020-08-08RePEc:kap:enreec
article Discounting in a world of limited growth This paper explores the consequences fordiscounting of assuming limits to growth. One of the main determinants of the discount rate is the rate of economic growth. If growth rates decline in the future then the discount rate should not be constant but also decline over time. In fact, we would then need not a single discount rate but rather a variable discount schedule. This would imply higher present values for the distant future. The paper analyses how discount rates would vary with different assumptions about the patterns of growth and the pure rate of time preference. Copyright Kluwer Academic Publishers 1994 Discount, logistic growth, limits, present value, 5 1994 4 10 Environmental & Resource Economics 527 534 http://hdl.handle.net/10.1007/BF00691927 text/html Access to full text is restricted to subscribers. Thomas Sterner
oai:RePEc:kap:enreec:v:11:y:1998:i:3:p:503-5202020-08-08RePEc:kap:enreec
article Resilience in the Dynamics of Economy-Environment Systems The ecological concept of resilience has begun to inform analysis of change in economy-environment systems. The linkages between resilience and the stability of dynamical systems are discussed, along with its role in understanding of the evolution of such systems. Particular linkages discussed include those between resilience, biodiversity and the sustainability of alternative states. Recent developments in modelling the resilience of joint economy-environment systems suggest the advantages of analysing change in the system as a Markov process, the transition probabilities between states offering a natural measure of the resilience of the system in such states. It is argued that this ‘emergent property’ of the collaboration between ecology and economics has far-reaching implications for the way we think about, model and manage the environmental sustainability of economic development. Copyright Kluwer Academic Publishers 1998 biodiversity, dynamics, resilience, stability, 3 1998 11 4 Environmental and Resource Economics 503 520 http://hdl.handle.net/10.1023/A:1008255614276 text/html Access to full text is restricted to subscribers. Charles Perrings cap8@york.ac.uk
oai:RePEc:kap:enreec:v:31:y:2005:i:1:p:35-452020-08-08RePEc:kap:enreec
article Is the Experimental Auction a Dynamic Market? Experimental auctions are generally thought of as static markets. This paper presents the results of an experimental auction designed to test whether participants’ perceptions regarding the relative difficulty of delaying or reversing a transaction outside the experimental market systematically affect their willingness-to-pay bids. The results show that auction participants’ perceptions significantly impact their bids in a manner that is consistent with real option theory. These results suggest that economists must be careful to consider the existence of outside markets when designing experimental auctions. Copyright Springer 2005 commitment cost, dynamic markets, experimental auctions, real option theory, 1 2005 31 05 Environmental & Resource Economics 35 45 http://hdl.handle.net/10.1007/s10640-004-6981-z text/html Access to full text is restricted to subscribers. Jay Corrigan corriganj@kenyon.edu
oai:RePEc:kap:enreec:v:41:y:2008:i:1:p:47-702020-08-08RePEc:kap:enreec
article Joint Management of Wildlife and Livestock Disease Bioeconomics, Infectious disease, Ecosystem management, White-tailed deer, Optimal control, 1 2008 41 9 Environmental and Resource Economics 47 70 http://hdl.handle.net/10.1007/s10640-007-9180-x text/html Access to full text is restricted to subscribers. Richard Horan horan@msu.edu Christopher Wolf Eli Fenichel Kenneth Mathews
oai:RePEc:kap:enreec:v:33:y:2006:i:1:p:119-1422020-08-08RePEc:kap:enreec
article Endogenous Land use and the Ricardian Valuation of Climate Change The Ricardian technique uses cross-sectional variation in the capitalized value of climate in land to infer the agricultural costs or benefits of dynamic climate change. While a practical approach for predicting the consequences of global warming with readily available data, it may yield biased results when land-use decisions depend on the climate attributes being valued and when land has unobserved attributes that differ with the use to which it is put. This paper illustrates the conditions under which such a bias will occur, describes an empirical model that corrects for it, and estimates that model with agricultural census data from Brazil. The approach, moreover, allows constraints on adjustment to be explicitly incorporated into the Ricardian framework, relaxing one of that technique’s most conspicuous assumptions. Copyright Springer 2006 adjustment costs, endogenous land use, global climate change, Ricardian valuation, Q1, Q51, Q54, R14, 1 2006 33 01 Environmental & Resource Economics 119 142 http://hdl.handle.net/10.1007/s10640-005-2646-9 text/html Access to full text is restricted to subscribers. Christopher Timmins christopher.timmins@duke.edu
oai:RePEc:kap:enreec:v:63:y:2016:i:2:d:10.1007_s10640-014-9836-22020-08-08RePEc:kap:enreec
article Moral Behaviour, Altruism and Environmental Policy Abstract Free-riding is often associated with self-interested behaviour. However, if there is a global pollutant, free-riding will arise if individuals calculate that their emissions are negligible relative to the total, so total emissions and hence any damage that they and others suffer will be unaffected by whatever consumption choice they make. In this context consumer behaviour and the optimal environmental tax are independent of the degree of altruism. For behaviour to change, individuals need to make their decisions in a different way. We propose a new theory of moral behaviour whereby individuals recognise that they will be worse off by not acting in their own self-interest, and balance this cost off against the hypothetical moral value of adopting a Kantian form of behaviour, that is by calculating the consequences of their action by asking what would happen if everyone else acted in the same way as they did. We show that: (a) if individuals behave this way, then altruism matters and the greater the degree of altruism the more individuals cut back their consumption of a ‘dirty’ good; (b) nevertheless the optimal environmental tax is exactly the same as that emerging from classical analysis where individuals act in self-interested fashion. Altruism, Climate change, Environmental economics, Environmental tax, Externalities, Moral behaviour, Pro-social behaviour, Public goods 2 2016 63 2 15 Environmental and Resource Economics 505 522 http://link.springer.com/10.1007/s10640-014-9836-2 text/html Abstract Marc Daube mpl@st-andrews.ac.uk University of St Andrews David Ulph du1@st-andrews.ac.uk University of St Andrews
oai:RePEc:kap:enreec:v:55:y:2013:i:4:p:501-5122020-08-08RePEc:kap:enreec
article The Sahel: A Malthusian Challenge? The population of the least developed countries of the Sahel will more than triple from 100 million to 340 million by 2050, and new research projects that today’s extreme temperatures will become the norm by mid-century. The region is characterized by poverty, illiteracy, weak infrastructure, failed states, widespread conflict, and an abysmal status of women. Scenarios beyond 2050 demonstrate that, without urgent and significant action today, the Sahel could become the first part of planet earth that suffers large-scale starvation and escalating conflict as a growing human population outruns diminishing natural resources. National governments and the international community can do a great deal to ameliorate this unfolding disaster if they put in place immediate policies and investments to help communities adapt to climate change, make family planning realistically available, and improve the status of girls and women. Implementing evidence-based action now will be an order of magnitude more humane and cost-effective than confronting disaster later. However, action will challenge some long held development paradigms of economists, demographers, and humanitarian organizations. If the crisis unfolding in the Sahel can help bridge the current intellectual chasm between the economic commitment to seemingly endless growth and the threat seen by some biologists and ecologists that human activity is bringing about irreversible damage to the biosphere, then it may be possible also to begin to solve this same formidable problem at a global level. Copyright Springer Science+Business Media Dordrecht 2013 4 2013 55 8 Environmental and Resource Economics 501 512 http://hdl.handle.net/10.1007/s10640-013-9679-2 text/html Access to full text is restricted to subscribers. Malcolm Potts potts@berkeley.edu Courtney Henderson Martha Campbell
oai:RePEc:kap:enreec:v:41:y:2008:i:1:p:89-1092020-08-08RePEc:kap:enreec
article How Feasible is Carbon Sequestration in Korea? A Study on the Costs of Sequestering Carbon in Forest Carbon sequestration, Land use model, Cost of carbon sequestration, Carbon flow, 1 2008 41 9 Environmental and Resource Economics 89 109 http://hdl.handle.net/10.1007/s10640-007-9182-8 text/html Access to full text is restricted to subscribers. SoEun Ahn seahn@kei.re.kr
oai:RePEc:kap:enreec:v:3:y:1993:i:3:p:245-2622020-08-08RePEc:kap:enreec
article On the design of incentive mechanisms in environmental policy The objective of this paper is to present environmental policy as a simple game in two stages within a principal-agent framework. At the outset the authority adopts a transfer payment rule. Then the firms react by carrying out abatement activities, based on their chosen levels of emission and output. Next the authority measures the emissions (and residual profit of the industry) and revises the level of its instrument. Then the game starts again. Our purpose is to narrow the scope of ad hoc incentive schemes by characterizing families of optimal linear schemes. Copyright Kluwer Academic Publishers 1993 Incentives, Principal-agent, environmental policy, emission taxes, abatement subsidies, 3 1993 3 6 Environmental & Resource Economics 245 262 http://hdl.handle.net/10.1007/BF00313161 text/html Access to full text is restricted to subscribers. Klaus Conrad Jianmin Wang
oai:RePEc:kap:enreec:v:54:y:2013:i:4:p:549-5692020-08-08RePEc:kap:enreec
article Promotion of Market Access for Renewable Energy in the Nordic Power Markets This study investigates how renewable targets for the Nordic power market might be achieved at the lowest costs. The instruments investigated are fixed Feed-In Tariff, economically sound premium based Feed-In Tariff and shadow-prices for CO 2 emissions. We utilize a Real-Time Price based simulation model in the analysis. We show that even with strong assumptions regarding the Emission Permit Price the targeted level of wind power is not reached without Feed-In Tariffs. Emission Trading produces the lowest total emissions but with the highest total costs. From the studied instruments the most cost-efficient way to reach the targets for wind energy market shares is the premium based Feed-In Tariff. This tariff is also the most cost-efficient way to reduce CO 2 emissions. Copyright Springer Science+Business Media B.V. 2013 Feed-In Tariff, Real-Time Pricing, Renewable energy, D24, D50, L11, Q28, Q41, Q52, Q53, 4 2013 54 4 Environmental and Resource Economics 549 569 http://hdl.handle.net/10.1007/s10640-012-9605-z text/html Access to full text is restricted to subscribers. Maria Kopsakangas-Savolainen Maria.Kopsakangas-Savolainen@ymparisto.fi Rauli Svento
oai:RePEc:kap:enreec:v:61:y:2015:i:2:p:217-2412020-08-08RePEc:kap:enreec
article Policy Goals for Improved Water Quality in the Baltic Sea: When do the Benefits Outweigh the Costs? This paper develops and applies a spatially explicit bioeconomic model to study transboundary nutrient pollution of the Baltic Sea. We combine catchment, marine and economic models covering the entire Baltic Sea region to weigh the costs of nutrient abatement and the benefits of improved water quality and solve for the optimal level of water protection. The overall benefits of the Baltic Sea Action Plan, the present convention on nutrient abatement, clearly outweigh the costs. Nevertheless, the total cost could be almost halved if the mix of measures and the regional targets were planned in a spatially cost–effective manner and if the consequent reductions of nitrogen and phosphorus, the two nutrients causing eutrophication, were better balanced. Policy optimizations, however, suggest that the optimal level of nutrient abatement is somewhat lower than the more ambitious level envisaged by the convention. The welfare gains from cost sharing that makes the optimal level of nutrient abatement worthwhile for all littoral countries would be 170 million euros annually. Copyright Springer Science+Business Media Dordrecht 2015 Cost–effectiveness, Environmental valuation, Eutrophication, Integrated assessment modelling, Nitrogen , Optimization, Phosphorus, 2 2015 61 6 Environmental and Resource Economics 217 241 http://hdl.handle.net/10.1007/s10640-014-9790-z text/html Access to full text is restricted to subscribers. Kari Hyytiäinen kari.hyytiainen@helsinki.fi Lassi Ahlvik Heini Ahtiainen Janne Artell Anni Huhtala Kim Dahlbo
oai:RePEc:kap:enreec:v:59:y:2014:i:1:p:137-1662020-08-08RePEc:kap:enreec
article Microeconometric Analysis of Residential Water Demand This paper develops a structural model for obtaining price elasticities and evaluating consumer’s response to changes in nonlinear tariffs when only panel data on household consumption are available. The model and the empirical strategy address problems implied by nonlinear tariffs, existence of a fixed cost, and use of limited data, giving rise to a random effects model with a nonlinear individual effect. Results show that the estimated model does well at fitting data and demand is inelastic, although elasticity varies by initial consumption block. Then, I estimate welfare consequences of implementing several demand policies. Copyright Springer Science+Business Media Dordrecht 2014 Household demand, Increasing-block pricing, Indirect inference, Kinked budget constraint, Panel data , Price-elasticity, Utilities, D12, L95, Q21, Q25, Q28, 1 2014 59 9 Environmental and Resource Economics 137 166 http://hdl.handle.net/10.1007/s10640-013-9721-4 text/html Access to full text is restricted to subscribers. Cristina Lopez-Mayan cristina.lopez.mayan@uab.es
oai:RePEc:kap:enreec:v:13:y:1999:i:1:p:75-942020-08-08RePEc:kap:enreec
article Sharing a Fish Resource – Bioeconomic Analysis of An Applied Allocation Rule Political and economic factors usually determine the harvest sharesallotted to heterogeneous fisher groups harvesting upon the same fishstock. Given that the fishers harvest upon different segments of a fishstock with, for instance, cannibalistic tendencies, the shares allottedmay have considerable effect upon the well-being of the stock and theeconomics of the fishery. This paper analyses an existing allocationrule defining harvest shares allotted to two vessel groups (trawlers andcoastal vessels) in the Norwegian cod fishery. We apply a model with twointeracting age groups within a single fish stock, where the interactionhas both biological and economic implications. Requiring a first bestapproach to an optimal stock size results in no harvest in the firstyears studied. In order to ensure harvest amounts close to the historicharvest, we design a second best model giving optimal biological sharesin the build-up phase of the stock, and bioeconomic optimal shares atthe optimum fish stock level. The second best model recommends that foran increasing stock size the trawlers should obtain decreasing shares.We find that the actual allocation rule functions in a manner oppositeto the second best model, since this rule allocates an increasing shareto the trawlers for an increasing stock size. Copyright Kluwer Academic Publishers 1999 bioeconomics, cod, cannibalism, harvest allocation, 1 1999 13 1 Environmental and Resource Economics 75 94 http://hdl.handle.net/10.1023/A:1008255332482 text/html Access to full text is restricted to subscribers. Claire Armstrong clairea@nfh.uit.no
oai:RePEc:kap:enreec:v:7:y:1996:i:1:p:15-432020-08-08RePEc:kap:enreec
article The economic consequences of substituting carbon payments for crop subsidies in U.S. agriculture There is a growing body of literature on the costs of sequestering carbon. However, no studies have examined the interplay between farm commodity programs and carbon sequestration programs. This study investigates two dimensions of the interaction between farm commodity programs and afforestation programs, using a price-endogenous sector model of agriculture in the United States. First, this study compares the fiscal and welfare costs of achieving specific carbon targets through afforestation, with and without current farm programs. Second, it examines the welfare, fiscal, and carbon consequences of replacing existing farm subsidies, wholly or in part, with payments for carbon. Two approaches, Hicksian and Marshallian, are investigated. In the first, the sector model is used to quantify the carbon consequences and fiscal costs associated with various combinations of farm commodity and carbon sequestration programs that leave consumers and producers in the U.S. agricultural sector no worse off than under existing farm programs. The second approach focuses on the carbon and welfare consequences of various farm commodity and carbon sequestration programs that hold total program fiscal costs constant at current levels. Althouth the methodology and data are applied to the United States, the issues addressed are common in a number of developed nations, particularly within the European Union (EU). Adapting existing sector models in these nations to perform similar analyses would provide policy makers with more precise information about the nature of the trade-offs involved with second-best policies for replacing farm commodity subsidies with tree planting subsidies. Copyright Kluwer Academic Publishers 1996 Climate change, carbon sequestration, farm policy, afforestation, 1 1996 7 1 Environmental & Resource Economics 15 43 http://hdl.handle.net/10.1007/BF00420425 text/html Access to full text is restricted to subscribers. J. Callaway Bruce McCarl
oai:RePEc:kap:enreec:v:8:y:1996:i:3:p:367-3742020-08-08RePEc:kap:enreec
article An empirical analysis of air pollution emissions policy for the U.K. residential sector In this paper an analysis of the U.K. government's air pollution emissions policy for the residential sector is undertaken. The analysis covers emissions arising from water and space heating, electric appliances and cooking appliances. Using an integrated economic-engineering model, the effects of the Energy Savings Trust and the imposition of Value Added Tax on residential fuel will be evaluated in terms of energy consumption and pollution emissions. It is found that the initial proposed policy was not sufficiently stringent to meet the government's environmental objectives, and that subsequent events have undermined the government's programme even further. Unless alternative policies are introduced, emissions from the residential sector will play an important role in jeopardizing the ability of the U.K. government to meet its international obligations. Copyright Kluwer Academic Publishers 1996 energy policy, pollution, resource conservation, 3 1996 8 10 Environmental & Resource Economics 367 374 http://hdl.handle.net/10.1007/BF00339083 text/html Access to full text is restricted to subscribers. Nick Johnstone
oai:RePEc:kap:enreec:v:23:y:2002:i:1:p:45-842020-08-08RePEc:kap:enreec
article Environmental Abatement and Intergenerational Distribution This paper employs an overlapping-generations model to explore the impactof public abatement on private investment and the intergenerationaldistribution of welfare. Whereas public abatement benefits the oldestgenerations in terms of non-environmental welfare, future generations gainmost in terms of environment welfare. The overall benefits tend to besmallest for generations born at the time of the unanticipated policy shock.Public debt policy, however, can be employed to ensure that welfare gainsare distributed more equally across the various generations. Such a policyimplies that natural capital crowds-out man-made capital. Copyright Kluwer Academic Publishers 2002 debt policy, intergenerational welfare effects, overlapping generations, public environmental abatement, 1 2002 23 9 Environmental and Resource Economics 45 84 http://hdl.handle.net/10.1023/A:1020236812676 text/html Access to full text is restricted to subscribers. A. Bovenberg a.l.bovengberg@kub.nl Ben Heijdra b.j.heijdra@eco.rug.nl
oai:RePEc:kap:enreec:v:63:y:2016:i:3:p:545-5702020-08-08RePEc:kap:enreec
article Confronting the Food–Energy–Environment Trilemma: Global Land Use in the Long Run Economic, agronomic, and biophysical drivers affect global land use, so all three influences need to be considered in evaluating economically optimal allocations of the world’s land resources. A dynamic, forward-looking optimization framework applied over the course of the coming century shows that although some deforestation is optimal in the near term, in the absence of climate change regulation, the desirability of further deforestation is eliminated by mid-century. Although adverse productivity shocks from climate change have a modest effect on global land use, such shocks combined with rapid growth in energy prices lead to significant deforestation and higher greenhouse gas emissions than in the baseline. Imposition of a global greenhouse gas emissions constraint further heightens the competition for land, as fertilizer use declines and land-based mitigation strategies expand. However, anticipation of the constraint largely dilutes its environmental effectiveness, as deforestation accelerates prior to imposition of the target. Copyright Springer Science+Business Media Dordrecht 2016 Biofuels, Climate change, Deforestation, Energy, Environment, Food, Forestry, GHG emissions, Global land use, C61, Q15, Q23, Q26, Q40, Q54, 3 2016 63 3 Environmental and Resource Economics 545 570 http://hdl.handle.net/10.1007/s10640-014-9848-y text/html Access to full text is restricted to subscribers. Jevgenijs Steinbuks jsteinbuks@worldbank.org Thomas Hertel
oai:RePEc:kap:enreec:v:2:y:1992:i:4:p:359-3712020-08-08RePEc:kap:enreec
article Rainfed mechanized farming and deforestation in central Sudan Sudan is threatened by a serious deforestation problem. Total forested area decreased by about 20 percent over the last two decades, largely as a result of the expansion of rainfed mechanized farming (RMF). To safeguard against the problems of deforestation, the government's Mechanized Farming Corporation requires each farmer to leave at least ten percent of the total farm area under shelterbelts. Few farmers pay attention to this clause. This paper addresses the problem of RMF expansion and analyzes the effects of different factors on the preservation of shelterbelts. Results indicate that the following factors influence the decision to preserve shelterbelts: farmer's belief in the value of shelterbelts, the production of gum arabic, farm size, farmer's wealth, years a farm has been cultivated, and type of farm. Copyright Kluwer Academic Publishers 1992 Deforestation, rainfed mechanized farming, shelterbelts, Sudan, logit model, probit model, random utility model, 4 1992 2 7 Environmental & Resource Economics 359 371 http://hdl.handle.net/10.1007/BF00304967 text/html Access to full text is restricted to subscribers. Abdelmoneim Elnagheeb Daniel Bromley
oai:RePEc:kap:enreec:v:16:y:2000:i:1:p:105-1192020-08-08RePEc:kap:enreec
article A Guide to Extracting Information from Environmental Pressure Groups This paper examines the relationship between environmental pressure groupsand environmental policy makers. Environmental pressure groups are assumedto possess valuable private information on environmental issues.Environmental pressure groups are also assumed to pursue their ownpreferences, which are only partially correlated with policy makers'preferences. A new aspect is that binding contracts with side payments arenot allowed, which accurately describes the interaction betweenenvironmental pressure groups and governments. It is shown that by choosingprobabilities of acting on environmental pressure groups' signals, adecision maker can force environmental pressure groups to reveal superiorinformation even in the absence of binding contracts. Copyright Kluwer Academic Publishers 2000 asymmetric information, environmental decision making, truth-telling, 1 2000 16 5 Environmental and Resource Economics 105 119 http://hdl.handle.net/10.1023/A:1008389431896 text/html Access to full text is restricted to subscribers. Eric Nævdal Richard Brazee
oai:RePEc:kap:enreec:v:39:y:2008:i:2:p:161-1742020-08-08RePEc:kap:enreec
article The role of agricultural cooperatives in sustaining the wheat diversity and productivity: the case of southern Italy Crop biodiversity, Wheat varieties, Productivity, Cooperatives, 2 2008 39 2 Environmental and Resource Economics 161 174 http://hdl.handle.net/10.1007/s10640-007-9100-0 text/html Access to full text is restricted to subscribers. Salvatore Falco s.difalco@kent.ac.uk Melinda Smale m.smale@cgiar.org Charles Perrings Charles.Perrings@asu.edu
oai:RePEc:kap:enreec:v:43:y:2009:i:2:p:275-2932020-08-08RePEc:kap:enreec
article Carbon Subsidies, Taxes and Optimal Forest Management Optimal forest harvest policy, Real options, Carbon credits, Q23, Q28, Q15, 2 2009 43 6 Environmental and Resource Economics 275 293 http://hdl.handle.net/10.1007/s10640-008-9238-4 text/html Access to full text is restricted to subscribers. Graeme Guthrie graeme.guthrie@vuw.ac.nz Dinesh Kumareswaran
oai:RePEc:kap:enreec:v:64:y:2016:i:1:d:10.1007_s10640-015-9921-12020-08-08RePEc:kap:enreec
article National Accounting and the Valuation of Ecosystem Assets and Their Services Abstract There has long been interest in integrating the value of environmental stocks and flows into standard measures of economic activity and wealth, in particular through the development of adjusted measures of GDP and extended measures of national wealth. This paper examines how the valuation of ecosystem services and ecosystem assets can be undertaken in an integrated national accounting setting. We clarify the relevant valuation principles, most significantly the need to apply the concept of exchange values, and explain why the integration of ecosystem services necessitates an extension of the standard production boundary used in economic measurement. The main implications of an accounting approach are discussed including the need to distinguish benefits from services, the need for valuation methods that exclude consumer surplus, and the importance of aligning measures of income and degradation. Remaining challenges include the treatment of low or negative rents, accounting for ecosystem disservices, and the derivation of values for ecosystem assets. Meeting these challenges and advancing work in this area should be the joint focus of economists, ecologists and accountants. Ecosystem accounting, National accounts, Ecosystem services, Degradation, Valuation, Green accounting 1 2016 64 5 1 Environmental and Resource Economics 1 23 http://link.springer.com/10.1007/s10640-015-9921-1 text/html Abstract Carl Obst cobst@unimelb.edu.au University of Melbourne Lars Hein Wageningen University Bram Edens Statistics Netherlands
oai:RePEc:kap:enreec:v:43:y:2009:i:3:p:333-3502020-08-08RePEc:kap:enreec
article Creative Disasters? Flooding Effects on Capital, Labour and Productivity Within European Firms Climate change, Natural disasters, Firm growth, Productivity, Difference-in-difference, D24, Q54, R10, C21, 3 2009 43 7 Environmental and Resource Economics 333 350 http://hdl.handle.net/10.1007/s10640-009-9273-9 text/html Access to full text is restricted to subscribers. Andrea Leiter andrea.leiter@uibk.ac.at Harald Oberhofer harald.oberhofer@uibk.ac.at Paul Raschky paul.raschky@uibk.ac.at
oai:RePEc:kap:enreec:v:62:y:2015:i:1:p:59-822020-08-08RePEc:kap:enreec
article A Model of Benchmarking Regulation: Revisiting the Efficiency of Environmental Standards The conventional economic argument favors the use of market-based instruments over ‘command-and-control’ regulation. This viewpoint, however, is often limited in the description and characteristics of the latter; namely, environmental standards are often portrayed as lacking structured abatement incentives. Yet contemporary forms of command-and-control regulation, such as standards stipulated via benchmarking, have the potential to be efficient. We provide a first formal analysis of environmental standards based on performance benchmarks. We show that under specific conditions, standards can provide efficient incentives to improve environmental performance. Copyright Springer Science+Business Media Dordrecht 2015 Environmental standards, Command-and-control regulation, Benchmarking, Relative performance mechanism, Contests, L51, Q50, Q58, 1 2015 62 9 Environmental and Resource Economics 59 82 http://hdl.handle.net/10.1007/s10640-014-9815-7 text/html Access to full text is restricted to subscribers. Joschka Gerigk Ian MacKenzie i.mackenzie@uq.edu.au Markus Ohndorf
oai:RePEc:kap:enreec:v:61:y:2015:i:1:p:71-852020-08-08RePEc:kap:enreec
article The Behavioral Ecology of Fishing Vessels: Achieving Conservation Objectives Through Understanding the Behavior of Fishing Vessels Colin Clark made seminal contributions in both resource economics and behavioral ecology. In the former, he showed how to link biological and economic factors in a consistent mathematical framework, virtually creating the field of mathematical bioeconomics single-handedly. In the latter, he was a major contributor of the introduction of state variable methods for modeling the behavior and life history of organisms. In this paper, we apply the methods of behavioral ecology to a problem in fisheries management and show that understanding fisher responses to quota decrements according to fishing area (so that the decrement in the quota of effort from fishing in a particular area is larger than the actual effort used there) may be as or more effective for seabird conservation than closing areas. To begin, we explain state variable methods in behavioral ecology, using insect parasitoids—Colin’s choice of after dinner talk at the meeting in his honor—making connections between behavioral ecology and resource economics. We then turn to the pelagic longline fishery off eastern Australia and show how the same kinds of methods used in behavioral ecology can provide new insights about this fishery. We provide a model of sufficient detail to compare the current management practice (closures), no management, and spatial management with effort decrements that vary over space and show that the latter management strategy is both environmentally and economically more effective than closures or no management. Copyright Springer Science+Business Media Dordrecht 2015 Bioeconomics, Behavioral ecology, State dependence , Stochastic dynamic programming, Fisheries, 1 2015 61 5 Environmental and Resource Economics 71 85 http://hdl.handle.net/10.1007/s10640-013-9739-7 text/html Access to full text is restricted to subscribers. Marc Mangel msmangel@ucsc.edu Natalie Dowling Natalie.Dowling@csiro.au Juan Arriaza jlopez@soe.ucsc.edu
oai:RePEc:kap:enreec:v:55:y:2013:i:3:p:387-4052020-08-08RePEc:kap:enreec
article Context Effects in a Negatively Framed Social Dilemma Experiment A number of studies of the positively-framed voluntary contribution mechanism (VCM) public goods game have examined the role of context on participant behavior. Relatively little attention, however, has been given to the effects of context in negatively-framed VCM games even though this setting is relevant to a wide array of real world challenges, such as common pool resource use and pollution externalities. This study uses a carefully-controlled laboratory experiment to investigate the degree to which the context in which decisions are made influences decision making in a negatively-framed VCM laboratory experiment. The context treatments that we evaluate vary communication, voting, and the status quo of the initial endowment. Results indicate that providing groups the opportunity to communicate and vote significantly reduces choices that impose external costs. Importantly, the pro-social effects of communication and voting are strongest when the status quo endowment is the private account, which generates costs on other participants. This result suggests that the effect of the status quo endowment is a function of whether the social dilemma is framed positively or negatively when communication between participants is allowed. Copyright Springer Science+Business Media Dordrecht 2013 Negative externality, Voluntary contribution mechanism, Cheap talk, Voting, Status quo bias, Experimental economics, 3 2013 55 7 Environmental and Resource Economics 387 405 http://hdl.handle.net/10.1007/s10640-012-9631-x text/html Access to full text is restricted to subscribers. Kent Messer messer@udel.edu Jordan Suter Jubo Yan
oai:RePEc:kap:enreec:v:10:y:1997:i:2:p:167-1752020-08-08RePEc:kap:enreec
article External Costs of Aquaculture Production in West Virginia Temperate hill-lands of the U.S.A. such as those in West Virginia are areas from which increasing output of farm-raised fish may be possible. However, the downstream economic impacts of current and projected future effluent as a result of aquaculture production have not been extensively studied. Using an externality framework and a combination of primary and secondary data, this study determines pollution prevention costs (PPC), and downstream pollution damage costs resulting from fish farm wastewater effluent measured as willingness to pay (WTP) for restoring water quality. PPC is estimated at $0.11 per kg of trout produced (which would add 6% to private production cost), and WTP is estimated at $0.49 per kg of trout produced (representing 25% of private production cost) at current production and price levels. This study shows that installation of filtration units is a low-cost (less than 6% of total cost) and an effective technology for controlling pollution at the source. Internalizing external costs (adding this 6% to private production costs) is one strategy that could contribute to sustainable growth of the aquaculture industry. Copyright Kluwer Academic Publishers 1997 aquaculture, economics, eutrophication, externalities, water quality, 2 1997 10 9 Environmental and Resource Economics 167 175 http://hdl.handle.net/10.1023/A:1026473221396 text/html Access to full text is restricted to subscribers. Stephen Smearman Gerard D'souza Virgil Norton
oai:RePEc:kap:enreec:v:18:y:2001:i:4:p:367-3712020-08-08RePEc:kap:enreec
article On the Flexibility of Optimal Policies for Green Design Several recent papers show that different combinations of taxes and subsidies can achieve the social optimum for green design and household waste management when there are various market failures. This note shows that such policy flexibility exists only if all relevant actions by individual agents can be properly targeted by economic instruments. If the household can make a private effort to reduce waste, then an optimal policy is shown to be a unique combination of given economic instruments. Copyright Kluwer Academic Publishers 2001 green design, household waste, optimal policy, 4 2001 18 4 Environmental and Resource Economics 367 371 http://hdl.handle.net/10.1023/A:1011170816440 text/html Access to full text is restricted to subscribers. Chongwoo Choe c.choe@latrobe.edu.au Iain Fraser
oai:RePEc:kap:enreec:v:1:y:1991:i:4:p:385-4132020-08-08RePEc:kap:enreec
article How efficient are national environmental standards? A benefit-cost analysis of the United States experience This paper summarizes the results of the first systematic, geographically-specific efficiency assessment of the U.S. experience with national environmental standards and with alternative approaches to establishing those standards. This ex-post evaluation assessed the net benefits that resulted from EPA's regulation of conventional air and water pollutants from the pulp and paper industry between 1973 and 1984. The paper compares the benefit-cost efficiencies of the three dominant regulatory approaches: technology, ambient, and benefits. Unlike previous studies, which assessed benefits and costs on a national basis, the study estimates both costs and benefits on a facility-by-facility basis. The analysis shows how the efficiency of national environmental regulations can vary dramatically at local levels. The authors conclude that the technology-based standards for water pollution management failed as an efficient environmental strategy. The costs clearly exceeded the benefits in the aggregate, as well as in the specific in most situations. Benefits exceeded costs at only 11 of the 68 mills investigated. The ambient based standards for air pollution management succeeded as an environmental strategy in the aggregate, but succeeded in the specific for only one-third of the mills (22 of 60 mills). The benefits-based standards for air pollution management also succeeded in the aggregate as well as in the specific for about one-half of the mills. Benefits exceeded costs at 29 of the 60 mills investigated. The results of the study point to two major conclusions. First, a regulatory policy that is based on some measure of environmental results, either ambient-based or benefits-based, will be more efficient than a policy that ignores environmental results. Second, truly efficient policies for reducing environmental risks require pollution mitigation decisions that take into account local conditions. These include not only the changes in local ambient conditions, but also the number of people who will benefit from pollution reduction decisions. This latter conclusion suggests that national environmental standards per se may be inefficient. Copyright Kluwer Academic Publishers 1991 Environmental standards, environmental regulations, benefit-cost, cost-benefit, United States, efficiency, 4 1991 1 12 Environmental & Resource Economics 385 413 http://hdl.handle.net/10.1007/BF00377494 text/html Access to full text is restricted to subscribers. Ralph Luken Lyman Clark
oai:RePEc:kap:enreec:v:55:y:2013:i:1:p:21-462020-08-08RePEc:kap:enreec
article Scientific Ambiguity and Climate Policy Economic evaluation of climate policy traditionally treats uncertainty by appealing to expected utility theory. Yet our knowledge of the impacts of climate policy may not be of sufficient quality to be described by unique probabilistic beliefs. In such circumstances, it has been argued that the axioms of expected utility theory may not be the correct standard of rationality. By contrast, several axiomatic frameworks have recently been proposed that account for ambiguous knowledge. In this paper, we apply static and dynamic versions of a smooth ambiguity model to climate mitigation policy. We obtain a general result on the comparative statics of optimal abatement and ambiguity aversion, and then extend our analysis to a more realistic, dynamic setting, where we introduce scientific ambiguity into the well-known DICE model of the climate-economy system. For policy-relevant exogenous mitigation policies, we show that the value of emissions abatement increases as ambiguity aversion increases, and that this ‘ambiguity premium’ can in some plausible cases be very large. In these cases the effect of ambiguity aversion on welfare is comparable to that of other much studied welfare parameters. Thus ambiguity aversion may be an important neglected aspect of climate change economics, and seems likely to provide another argument for strong abatement policy. Copyright Springer Science+Business Media Dordrecht 2013 Climate change, Uncertainty, Ambiguity, Q54, D81, 1 2013 55 5 Environmental and Resource Economics 21 46 http://hdl.handle.net/10.1007/s10640-012-9612-0 text/html Access to full text is restricted to subscribers. Antony Millner A.Millner@lse.ac.uk Simon Dietz s.dietz@lse.ac.uk Geoffrey Heal
oai:RePEc:kap:enreec:v:57:y:2014:i:2:p:215-2312020-08-08RePEc:kap:enreec
article Valuing Climate Change Effects Upon UK Agricultural GHG Emissions: Spatial Analysis of a Regulating Ecosystem Service This article provides estimates of the physical and economic value of changes in greenhouse gas (GHG) emissions projected to arise from climate change induced shifts in UK agricultural land use during the period 2004–2060. In physical terms, significant regional differences are predicted with the intensity of agricultural GHG emissions increasing in the upland north and western parts of the UK and decreasing in the lowland south and east of the country. Overall these imply relative modest increases in the physical quantity of emissions. However, rapid rises in the expected marginal value of such emissions translate these trends into major increases in their economic costs over the period considered. Copyright @ European Union 2014 Climate change, GHG emissions, Ecosystem services, Land use change, Agriculture, 2 2014 57 2 Environmental and Resource Economics 215 231 http://hdl.handle.net/10.1007/s10640-013-9661-z text/html Access to full text is restricted to subscribers. David Abson abson@uni-leuphana.de Mette Termansen Unai Pascual Uzma Aslam Carlo Fezzi Ian Bateman
oai:RePEc:kap:enreec:v:28:y:2004:i:2:p:153-1672020-08-08RePEc:kap:enreec
article Recovering Hicksian Consumer Surplus within a Collective Model: Hausman's Method for the Household The purpose of this paper is to describe the implications of the collective model of household behavior for the methods used to estimate the economic value of non-marketed environmental resources. After demonstrating how the separability restrictions inherent in the collective model allow individual preference and household income allocation choices to be distinguished, the paper demonstrates how the framework can be used to recover Hicksian consumer surplus. An algebraic example is used to illustrate how the framework can be used in valuing environmental resources. Copyright Kluwer Academic Publishers 2004 benefit estimation, collective model, household behavior, 2 2004 28 6 Environmental and Resource Economics 153 167 http://hdl.handle.net/10.1023/B:EARE.0000029916.05630.89 text/html Access to full text is restricted to subscribers. V. Smith vksmith@are1.cals.ncsu.edu George Van Houtven
oai:RePEc:kap:enreec:v:56:y:2013:i:3:p:307-3352020-08-08RePEc:kap:enreec
article Specification and Aggregation Errors in Environmentally Extended Input–Output Models This article considers the specification and aggregation errors that arise from estimating embodied $$\text{ CO }_{2}$$ emissions and embodied water use with environmentally extended national input–output (IO) models, instead of with an environmentally extended international IO model. Model specification errors result from the use of domestic environmental and domestic technology coefficients to estimate emissions or resources that are embodied in international trade. For $$\text{ CO }_{2}$$ footprints, unacceptably large overestimations arise from using domestic emission coefficients, which are only partly canceled out by using domestic technology coefficients. For water use footprints both specification errors are smaller, but hardly cancel out. Sectoral aggregation errors occur when combining the 129 EXIOPOL industries to 59 EU industries and 10 broad sectors. The latter aggregation creates the largest errors. Spatial aggregation errors arise from combining 43 individual EXIOPOL countries in four broad regions and “the rest of the world”. Substantial, unacceptable errors occur again, now especially in relation to water use. Copyright Springer Science+Business Media Dordrecht 2013 International input–output modeling, Specification errors, Aggregation errors, $$\text{ CO }_{2}$$ emissions, Water use, EXIOPOL project, 3 2013 56 11 Environmental and Resource Economics 307 335 http://hdl.handle.net/10.1007/s10640-013-9649-8 text/html Access to full text is restricted to subscribers. Maaike Bouwmeester m.c.bouwmeester@rug.nl Jan Oosterhaven
oai:RePEc:kap:enreec:v:48:y:2011:i:1:p:71-822020-08-08RePEc:kap:enreec
article Sustainability in Uncertain Economies Comprehensive wealth, Project evaluation, Resilience, Sustainable development, Uncertainty, 1 2011 48 1 Environmental and Resource Economics 71 82 http://hdl.handle.net/10.1007/s10640-010-9398-x text/html Access to full text is restricted to subscribers. Elettra Agliardi elettra.agliardi@unibo.it
oai:RePEc:kap:enreec:v:12:y:1998:i:2:p:185-2012020-08-08RePEc:kap:enreec
article International Cooperation Behind the Veil of Uncertainty – The Case of Transboundary Acidification The complexities of international environmental problems are only poorly understood. Hence, decision makers have to negotiate about abatement measures even though they do not know the 'true' model of the ecological system and have only a rough idea about the costs and benefits of their action. It will be analysed to what extent this kind of 'model uncertainty' – where players do not only have incomplete information about the payoff functions of the other players, but also about their own payoff function – affects the prospects of international cooperation. Using a simple game-theoretic model, it is shown how countries can use the veil of uncertainty to hide their distributional interests. The arguments are based on a deviation from the common prior assumption, which seems particularly questionable in a setting comprising various countries with different cultural and scientific backgrounds. Finally the model will prove useful to quantitatively and qualitatively illustrate the central role of model uncertainty in the negotiations of the first Sulphur Protocol signed to combat transboundary acidification. Copyright Kluwer Academic Publishers 1998 acid rain, international negotiations, model uncertainty, transboundary pollution, 2 1998 12 9 Environmental and Resource Economics 185 201 http://hdl.handle.net/10.1023/A:1008215711692 text/html Access to full text is restricted to subscribers. Carsten Helm helm@pik-potsdam.de
oai:RePEc:kap:enreec:v:8:y:1996:i:4:p:473-4832020-08-08RePEc:kap:enreec
article Fresh surface water resource allocation between Bulgaria and Greece This paper addresses the important issue of transboundary sharing of fresh surface water resources, including quantity and quality dimensions. It carves a simple economic model of the benefits which can be generated by maximizing the joint profits earned, when the resource is shared efficiently between two countries. The appropriate policy instrument towards this end is a bilateral agreement to charge the same water price to all water users in a given sector. Market clearance will then follow to determine the optimal water price. The case of the Nestos river flowing through Bulgaria and Greece, but overexploited by Bulgaria, in the Balkans is used as a case study. The empirical estimation of a fixed proportions production function for corn derives a marginal water value of the Nestos water for Greece. This value, which applies under the current non-cooperative solution, is higher than the optimal water price in the cooperative solution. Copyright Kluwer Academic Publishers 1996 bilateral agreements, case study, transboundary water resources, water price, 4 1996 8 12 Environmental & Resource Economics 473 483 http://hdl.handle.net/10.1007/BF00357415 text/html Access to full text is restricted to subscribers. Dimitrios Giannias Joseph Lekakis
oai:RePEc:kap:enreec:v:57:y:2014:i:2:p:197-2142020-08-08RePEc:kap:enreec
article Valuing Provisioning Ecosystem Services in Agriculture: The Impact of Climate Change on Food Production in the United Kingdom This paper provides an estimate of the contribution of the ecosystem to the provisioning services generated by agriculture. This is achieved by valuing the changes in productivity generated by a marginal alteration in ecosystem inputs. As an example, we consider the variation in rainfall and temperature projected by the recent UK Climate Impacts Programme. The analysis implements a spatially explicit, econometric model of agricultural land use based on the methodology recently developed by Fezzi and Bateman (Am J Agric Econ 93:1168–1188, 2011 ). Land use area and livestock stocking rates are then employed to calculate farm gross margin estimates of the value of changes in provisioning ecosystem services. Findings suggest that the variation in ecosystem inputs induced by climate change will have substantial influence on agricultural productivity. Interestingly, within the UK context climate change generates mainly positive effects, although losses are forecasted for those southern areas most vulnerable to heat-stress and drought. Copyright Springer Science+Business Media Dordrecht 2014 Climate change, Agriculture, Provisioning ecosystem services, UK national ecosystem assessment, Structural land use model, Censored regression, 2 2014 57 2 Environmental and Resource Economics 197 214 http://hdl.handle.net/10.1007/s10640-013-9663-x text/html Access to full text is restricted to subscribers. Carlo Fezzi c.fezzi@uea.ac.uk Ian Bateman Tom Askew Paul Munday Unai Pascual Antara Sen Amii Harwood
oai:RePEc:kap:enreec:v:30:y:2005:i:1:p:93-1142020-08-08RePEc:kap:enreec
article Post OPA-90 Vessel Oil Transfer Spill Prevention: The Effectiveness of Coast Guard Enforcement Although oil spills from tanker accidents receive the most publicity, most vessel spills are not the result of accidents but of oil transfer activities. We investigate determinants of the size of vessel oil transfer spills as well as the effectiveness of Coast Guard enforcement activities in reducing their size. Vessel out-of-water and in-water oil transfer spillage functions are estimated utilizing tobit regression and detailed data on individual vessel oil transfer spills as well as Coast Guard safety/environmental enforcement activity data for the 1991–1995 period. Our estimation results suggest that Coast Guard hull but not machinery inspections are effective in reducing both out-of-water and in-water spills; patrols by air, but not by boat, are effective in reducing out-of-water spills; but neither is effective in reducing in-water spills. The results also show that the type of vessel (oil- and non-oil-cargo), vessel characteristics, vessel operations, weather/visibility conditions, and waterway type are determinants of post OPA-90 vessel oil transfer spills. Copyright Springer 2005 oil spill, oil transfer, vessel, water pollution, 1 2005 30 1 Environmental & Resource Economics 93 114 http://hdl.handle.net/10.1007/s10640-004-2378-2 text/html Access to full text is restricted to subscribers. Wayne Talley wktalley@odu.edu Di Jin Hauke Kite-Powell
oai:RePEc:kap:enreec:v:13:y:1999:i:2:p:219-2342020-08-08RePEc:kap:enreec
article Despairing Over Disparities: Explaining the Difference Between Willingness to Pay and Willingness to Accept This paper examines the three major explanations for the disparity between willingness-to-pay (WTP) and willingness-to-accept (WTA) observed in contingent value surveys and laboratory experiments: a belief that the results must be biased in some fashion, Hanemann's (1991) substitutes hypothesis, and the loss aversion model proposed by Tversky and Kahneman (1991). Starting from the assumption that individuals make utility maximizing choices, we develop structural equations that yield parametric tests of the hypotheses within a single, non-experimental framework. The approach is flexible enough to incorporate a variety of functional form and distributional assumptions and can be applied to either data from either open-ended bids or dichotomous choice questions. The usefulness of the approach is demonstrated using data from a survey that asked both WTP and WTA questions. The results provide weak support for loss aversion. Copyright Kluwer Academic Publishers 1999 contingent valuation survey, loss aversion, willingness-to-accept, willingness-to-pay, 2 1999 13 3 Environmental and Resource Economics 219 234 http://hdl.handle.net/10.1023/A:1008246228773 text/html Access to full text is restricted to subscribers. Carol Mansfield carolm@env.duke.edu
oai:RePEc:kap:enreec:v:52:y:2012:i:1:p:133-1542020-08-08RePEc:kap:enreec
article Selling the Farm Silver? Understanding Water Sales to the Australian Government Water entitlements, Environmental water sales, Murray-Darling Basin, Irrigators, 1 2012 52 5 Environmental and Resource Economics 133 154 http://hdl.handle.net/10.1007/s10640-011-9523-5 text/html Access to full text is restricted to subscribers. S. Wheeler sarah.wheeler@unisa.edu.au A. Zuo H. Bjornlund C. Lane Miller
oai:RePEc:kap:enreec:v:50:y:2011:i:3:p:447-4742020-08-08RePEc:kap:enreec
article A Major Environmental Tax Reform for the UK: Results for the Economy, Employment and the Environment Carbon emissions reduction, Eco-innovation scenarios, Energy-environment-economy modelling, Environmental tax reform, 3 2011 50 11 Environmental and Resource Economics 447 474 http://hdl.handle.net/10.1007/s10640-011-9484-8 text/html Access to full text is restricted to subscribers. Paul Ekins p.ekins@ucl.ac.uk Philip Summerton Chris Thoung Daniel Lee
oai:RePEc:kap:enreec:v:13:y:1999:i:3:p:269-2882020-08-08RePEc:kap:enreec
article Taxation, Bequests, and Short and Long Run Timber Supplies: An Overlapping Generations Problem This paper uses an overlapping generations model with one-sided altruism to study the effects of several forest taxes that target bequests and affect timber supply. Unlike previous work, we investigate bequests and timber supply in both the short and long run when bequests are costly (e.g., taxed). The landowner's problem is examined in the short run, while the government's problem is examined in the long run assuming the existence of a steady state. We also consider taxes targeting harvests, growth, savings and bequests. Several new results are established concerning the interactions of taxes that might be used by a government to alter short and long run forest capital stocks: (i) the presence of a forest bequest tax affects the neutrality of harvest tax in both the short and long run, (ii) in the long run the bequest tax decreases bequests and timber supplies. When the bequest tax is not present, the capital income tax is neutral with respect to bequest and timber supply, while the harvest tax is neutral only if forest productivity is also not taxed. Finally, (iii) in the short run, the substitution and total effects of taxes in landowner decisions generally depend on the presence of the bequest tax. The results have implications for Pigouvian tax design and second best tax choice. Copyright Kluwer Academic Publishers 1999 forest bequests, timber supply, overlapping generations, 3 1999 13 4 Environmental and Resource Economics 269 288 http://hdl.handle.net/10.1023/A:1008252004784 text/html Access to full text is restricted to subscribers. Gregroy Amacher gamacher@vt.edu Richard Brazee Erkki Koskela Markku Ollikainen
oai:RePEc:kap:enreec:v:34:y:2006:i:2:p:189-2092020-08-08RePEc:kap:enreec
article Modeling Multiple-Objective Recreation Trips with Choices Over Trip Duration and Alternative Sites Traditionally, recreation demand studies have focused on single-day, single-activity trips, despite anecdotal and empirical evidence that many recreational trips involve overnight stays and multiple purposes. This paper develops a random utility model that explores how visitors choose alternative sites and trip durations for multiple-objective trips. We focus on a recreational activity, beach visits, that appear to have significant proportions of the population taking single and multiple-day trips, and many of the multiple day trips involve multiple objectives. Multiple-duration and multiple-objective issues are incorporated in pricing trip costs. The results of the research suggest that the accepted method for incorporating travel costs into random utility models can lead to biased estimates of the structural utility parameters and, consequently, biased measures of welfare in a multiple-objective trip setting for single- and multiple-day users. Copyright Springer 2006 beaches, multiple durations, multiple objectives, random utility model, recreation demand, 2 2006 34 06 Environmental & Resource Economics 189 209 http://hdl.handle.net/10.1007/s10640-005-6205-1 text/html Access to full text is restricted to subscribers. Chia-Yu Yeh Timothy Haab Brent Sohngen Sohngen.1@osu.edu
oai:RePEc:kap:enreec:v:3:y:1993:i:1:p:41-612020-08-08RePEc:kap:enreec
article Climate change damage and the trace gas index issue Efficient policies to control trace gas emissions require estimation of an appropriate “exchange rate” among these gases; i.e. the relative value of reducing emissions of each gas. A dynamic stock pollutant model is developed that considers damages associated with both non-climatic and climatic effects of the gases, differing atmospheric lifetimes of the gases, the discount rate, and non-linear damages. The index value and shadow value of control are estimated for carbon dioxide, carbon monoxide, methane, nitrous oxide and the 4 major chlorofluorocarbons (CFCs). The value of control for short-lived relative to long-lives gases is lower for low discount rates and quadratic compared with linear damages. The relative value of control for all gases falls relative to carbon dioxide if one considers the direct beneficial effects of carbon dioxide on agriculture. The general approach developed in the paper may have application for other environmental problems where multiple substances pose individual risks but also jointly contribute to a single risk. Copyright Kluwer Academic Publishers 1993 Climate change, environmental policy, dynamic control, stock pollutant, greenhouses gases, 1 1993 3 2 Environmental & Resource Economics 41 61 http://hdl.handle.net/10.1007/BF00338319 text/html Access to full text is restricted to subscribers. John Reilly Kenneth Richards
oai:RePEc:kap:enreec:v:64:y:2016:i:3:d:10.1007_s10640-015-9881-52020-08-08RePEc:kap:enreec
article The Impact of Rising Ethanol Production on the Brazilian Market for Basic Food Commodities: An Econometric Assessment Abstract The controversial debate on the impacts of rising biofuel production on food commodity markets is of great policy relevance in Brazil. This paper contributes to the discussion by applying panel data regression models with fixed effects using OLS. Our dataset comprises annual production/harvested area data for sugar, ethanol and five other staple commodities ranging from 1981 to 2009 for 24 Brazilian states. Our results indicate that rising ethanol production exerts statistically significant positive impacts on sugarcane; negative impacts on rice, beans and soybeans acreage but no statistically significant effect on the areas for corn and manioc. The negative impacts on commodities’ acreage have implications for the associated prices. Ceteris paribus, rising ethanol production puts some upward pressure on the prices for rice, beans and soybeans. However, the economic implication of these direct land use effects is attenuated due to the moderate scale of any effect. Agricultural land, Biofuels, Fixed effects models, Panel data, Staple commodities 3 2016 64 7 8 Environmental and Resource Economics 511 536 Q15 Q16 C23 http://link.springer.com/10.1007/s10640-015-9881-5 text/html Abstract Anelise Rahmeier Seyffarth anelise.rahmeier.seyffarth@uni-oldenburg.de University of Oldenburg
oai:RePEc:kap:enreec:v:14:y:1999:i:3:p:399-4122020-08-08RePEc:kap:enreec
article A Field Experiment Involving Cash and Hypothetical Charitable Donations An important focus for concern about Contingent Valuation (CV) is that hypothetical payments for non-market goods are biased upwards in comparison to cash payments. Lack of realism, through its influence on incentives to mis-report payments, may explain the divergence. This paper reports on a study which attempts to overcome this problem by emulating a real fund-raising solicitation by the Isle of Eigg Trust for both real and hypothetical donations. In contrast to previous results, the mean cash donation was higher (£3.71) than the man CV donation (£3.41). A third survey, which used a neutral CV design, implemented by a research organization, obtained a mean donation which was much higher (£6.21) than the cash equivalent. Copyright Kluwer Academic Publishers 1999 bias, cash and hypothetical donations, contingent valuation, realism, 3 1999 14 10 Environmental and Resource Economics 399 412 http://hdl.handle.net/10.1023/A:1008304405734 text/html Access to full text is restricted to subscribers. Douglas Macmillan d.macmillan@abdn.ac.uk Trevor Smart Andrew Thorburn
oai:RePEc:kap:enreec:v:41:y:2008:i:3:p:327-3452020-08-08RePEc:kap:enreec
article Cross-Border Pollution, Terms of Trade, and Welfare Cross-border pollution, Strategic spillover, Emission taxes, Terms of trade, Globalization, Welfare, Q28, H23, 3 2008 41 11 Environmental and Resource Economics 327 345 http://hdl.handle.net/10.1007/s10640-008-9194-z text/html Access to full text is restricted to subscribers. Panos Hatzipanayotou hatzip@aueb.gr Sajal Lahiri Michael Michael
oai:RePEc:kap:enreec:v:3:y:1993:i:1:p:1-212020-08-08RePEc:kap:enreec
article Empirical measures of factors affecting social rates of discount Economists have long considered possible divergences between private and social rates of time preferences. In this paper, we investigate factors hypothesized to affect this potential divergence. Results indicate that time preferences of individuals may be influenced by: 1. whether the resource in question is publicly or privately managed (respondents tend to have lower rates of time prefernce for publicly managed resources); and 2. the type of good being managed (respondents tend to have lower rates of time preference for income derived from a forest than for income derived from a portfolio of stocks and bonds). Additional factors which may influence the revealed rate of time preference include the pattern of benefits derived over time and various personal characteristics of the respondent. Although numerous methodological problems cloud the issues, our results suggest that capital markets may fail to aggregate utility over individuals and between goods, and that it may therefore be appropriate for governments to consider using lower rates of discount than the private sector, and to vary the rate used according to the type of good being evaluated. Copyright Kluwer Academic Publishers 1993 Time preferences, interest rates, inter generational equity, inter temporal allocation, 1 1993 3 2 Environmental & Resource Economics 1 21 http://hdl.handle.net/10.1007/BF00338317 text/html Access to full text is restricted to subscribers. Martin Luckert Wiktor Adamowicz
oai:RePEc:kap:enreec:v:45:y:2010:i:2:p:271-2822020-08-08RePEc:kap:enreec
article Pollution Abatement Subsidies and the Eco-Industry Environment goods and services industry, Pigouvian taxes, Pollution abatement subsidies, H23, L13, Q58, 2 2010 45 2 Environmental and Resource Economics 271 282 http://hdl.handle.net/10.1007/s10640-009-9315-3 text/html Access to full text is restricted to subscribers. Maia David maia.david@agroparistech.fr Bernard Sinclair-Desgagné bsd@hec.ca
oai:RePEc:kap:enreec:v:28:y:2004:i:2:p:169-1942020-08-08RePEc:kap:enreec
article On the Double Dividend under Imperfect Competition We investigate whether, and under which conditions, a revenue-neutral environmental tax reform may yield an employment double dividend, i.e., an improvement of environmental quality and an increase in aggregate employment. Using a model with two market imperfections – a rigid real wage and imperfect competition in one industry – we show that an employment dividend is plausibly obtained. However, for countries where labor taxes are high and households spend a large share of their income in favor of environmentally harmful consumption goods a double dividend can nevertheless not be obtained, for under these conditions environmental quality deteriorates. Copyright Kluwer Academic Publishers 2004 double dividend, environmental tax reform, imperfect competition, pollutant emissions, rigid real wage, 2 2004 28 6 Environmental and Resource Economics 169 194 http://hdl.handle.net/10.1023/B:EARE.0000029917.57621.df text/html Access to full text is restricted to subscribers. Thorsten Bayındır-Upmann tupmann@wiwi.uni-bielefeld.de
oai:RePEc:kap:enreec:v:29:y:2004:i:2:p:191-2172020-08-08RePEc:kap:enreec
article Embodied and Disembodied Technical Change in Fisheries: An Analysis of the Sète Trawl Fishery, 1985–1999 Overfishing and excess capacity in mostfisheries around the world have generated considerableand increasing concern about their biological and economic performance ramifications. Theseproblems, in part, stem from substantialinvestment in technical improvements to boats andequipment in fishing fleets, which exacerbatesexcess fishing capacity and low returns tofishing effort and investment, given regulatoryand biological constraints. However, little attempt hasbeen made to quantify the extent or effects oftechnical change in fisheries. In this paper, we usedetailed data on innovation patterns for 19vessels in the Sète trawl fleet of southernFrance to evaluate the contributions oftechnical change to catch rates. We find thatembodied technical change enhanced productivity by approximately one percent per year between 1985 and 1999, but that external (disembodied) events counteractedthis trend, causing a net output decline ofabout three percent per year. Copyright Kluwer Academic Publishers 2004 embodied technical change, fisheries, stochastic frontier, 2 2004 29 10 Environmental and Resource Economics 191 217 http://hdl.handle.net/10.1023/B:EARE.0000044603.62123.1d text/html Access to full text is restricted to subscribers. James Kirkley Catherine Morrison Paul cjmpaul@primal.ucdavis.edu Stephen Cunningham Joseph Catanzano
oai:RePEc:kap:enreec:v:34:y:2006:i:3:p:339-3462020-08-08RePEc:kap:enreec
article Economic Valuation of Health for Environmental Policy: Comparing Alternative Approaches. Introduction and Overview Protecting human health is a primary goal of environmental policy and economic evaluation of health can help policy-makers judge the relative worth of alternative actions. Economists use two distinct approaches in normatively evaluating health. Whereas environmental economists use benefit-cost analysis supported by monetary valuation in terms of willingness-to-pay, health economists evaluate interventions based on cost-effectiveness or cost-utility analysis (CEA), using quality-adjusted life-years (QALY) or similar indexes. This paper provides background on the controversy about the relative merits of these approaches and introduces the remaining papers in the special issue. These papers (with one exception) were presented at a conference sponsored by the Department of Economics at the University of Central Florida with support from the US Environmental Protection Agency. Although CEA might not lead to substantially different implications for environmental policy than benefit-cost analysis, and QALY may provide a benefit transfer tool to fill gaps in the morbidity valuation literature, the papers in this issue raise serious concerns about the suitability of QALY-based CEA for environmental regulatory analysis. QALY does not in general appropriately represent individual preferences for health and CEA is neither independent of income distribution nor adequate to assess efficiency. Copyright Springer Science+Business Media B.V. 2006 benefit-cost analysis, cost-effectiveness analysis, environmental policy, quality adjusted life years, regulatory analysis, value of a statistical life, willingness to pay, Q2, I18, J17, D61, H23, 3 2006 34 7 Environmental and Resource Economics 339 346 http://hdl.handle.net/10.1007/s10640-006-9008-0 text/html Access to full text is restricted to subscribers. Mark Dickie Mark.Dickie@bus.ucf.edu John List
oai:RePEc:kap:enreec:v:4:y:1994:i:4:p:305-3302020-08-08RePEc:kap:enreec
article Emission trading in Europe with an exchange rate This paper explores the analytical and empirical properties of a new method for emission trading according to a fixed exchange rate. The exchange rate is based on the ratios of the marginal costs of abatement in the optimal solution in order to account for the impact of the location of emission sources on the deposition. It is shown that, generally, this system will not achieve the optimal solution and does not guarantee that environmental deposition constraints are not violated, although total abatement costs are always reduced. A routine was developed to mimic trading as a bilateral, sequential process, subject to an exchange rate. In the example used, results for SO 2 emissions in Europe show that, starting from a uniform reduction, exchange-rate trading achieves higher cost savings than one-to-one trading, without achieving the cost minimum. Sulfur deposition targets are not violated since the initial emission allocation overfulfilled targets at many places. The results are sensitive to: pre-trade emission levels, the transaction costs, the availability of information on potential cost savings and assumptions made on the behavior of trading partners. Copyright Kluwer Academic Publishers 1994 Emission trading, air pollution, economic instruments, costs, europe, sulfur, 4 1994 4 8 Environmental & Resource Economics 305 330 http://hdl.handle.net/10.1007/BF00692228 text/html Access to full text is restricted to subscribers. Ger Klaassen Finn Førsund Markus Amann
oai:RePEc:kap:enreec:v:51:y:2012:i:4:p:617-6222020-08-08RePEc:kap:enreec
article Spatial Welfare Economics Versus Ecological Footprint: A Sensitivity Analysis Introducing Strong Sustainability Ecological footprint, Social welfare measures, Weak and strong sustainability, 4 2012 51 4 Environmental and Resource Economics 617 622 http://hdl.handle.net/10.1007/s10640-011-9518-2 text/html Access to full text is restricted to subscribers. Kurt Kratena kurt.kratena@wifo.ac.at http://www.wifo.at Gerhard Streicher
oai:RePEc:kap:enreec:v:36:y:2007:i:1:p:1-132020-08-08RePEc:kap:enreec
article Sustainable Resource Use and Economic Dynamics We argue that the sustainable use of natural resources has to be placed in a dynamic perspective, both in theoretical modelling and in applied research. This can be achieved by applying endogenous growth theory and other recent advances in dynamic theory. In this paper we discuss five contributions that combine the topics of natural resource use and economic dynamics. In particular, we show the common features of these contributions, thereby providing an overview of a very active and promising research area. Copyright Springer Science+Business Media, Inc. 2007 sustainability, natural resource use, economic dynamics, Q01, Q55, O13, O41, 1 2007 36 1 Environmental and Resource Economics 1 13 http://hdl.handle.net/10.1007/s10640-006-9043-x text/html Access to full text is restricted to subscribers. Lucas Bretschger lbretschger@ethz.ch Sjak Smulders
oai:RePEc:kap:enreec:v:47:y:2010:i:4:p:495-5202020-08-08RePEc:kap:enreec
article Effects of Unilateral Climate Policy on Terms of Trade, Capital Accumulation, and Welfare in a World Economy Capital accumulation, Emission permits, Overlapping generations, Terms of trade, Welfare, 4 2010 47 12 Environmental and Resource Economics 495 520 http://hdl.handle.net/10.1007/s10640-010-9390-5 text/html Access to full text is restricted to subscribers. Birgit Bednar-Friedl birgit.friedl@uni-graz.at Karl Farmer Andreas Rainer
oai:RePEc:kap:enreec:v:7:y:1996:i:3:p:251-2622020-08-08RePEc:kap:enreec
article Pollution control with imperfectly observable emissions In this paper, a model of environmental regulation with imperfect monitoring of emissions is presented. The regulator can use linear output taxes and emission taxes to influence the pollution level of a risk-averse firm. In contrast to the perfect monitoring case, a tax mix will usually be optimal. The relative weight depends on the degree of risk aversion and monitoring imperfection, and on technological factors. Copyright Kluwer Academic Publishers 1996 Asymmetric information, pollution control, emission taxes, output taxes, monitoring problems, 3 1996 7 4 Environmental & Resource Economics 251 262 http://hdl.handle.net/10.1007/BF00782148 text/html Access to full text is restricted to subscribers. Armin Schmutzler
oai:RePEc:kap:enreec:v:56:y:2013:i:3:p:379-3972020-08-08RePEc:kap:enreec
article Can Punishment Generate Specific Deterrence Without Updating? Analysis of a Stated Choice Scenario This study explores the specific deterrence generated by punishment in the context of regulatory violations with a focus on the distinction between upward revisions to future punishment parameters—likelihood and severity—and the experience of being penalized. In order to avoid the pitfalls of empirically analyzing actual choices made by regulated entities, e.g., measuring entities’ beliefs regarding the likelihood and size of future penalties, our study examines behavior associated with a stated choice scenario presented within a survey distributed to the environmental managers of facilities regulated under the US Clean Water Act. This choice of respondents strengthens the external validity of our empirical results. Based on a variety of statistical methods, our empirical results strongly and robustly reject the standard hypothesis that specific deterrence stems solely from upward revisions to punishment parameters while supporting the alternative hypothesis of experiential deterrence, whereby facilities focus on recent experiences to shape their compliance behavior. Copyright Springer Science+Business Media Dordrecht 2013 Deterrence, Compliance, Behavioral economics, Wastewater discharges, 3 2013 56 11 Environmental and Resource Economics 379 397 http://hdl.handle.net/10.1007/s10640-013-9652-0 text/html Access to full text is restricted to subscribers. Dietrich Earnhart earnhart@ku.edu Lana Friesen l.friesen@economics.uq.edu.au
oai:RePEc:kap:enreec:v:28:y:2004:i:4:p:517-5322020-08-08RePEc:kap:enreec
article Can People Value Protection against Invasive Marine Species? Evidence from a Joint TC–CV Survey in the Netherlands Harmful algal-bloom species (HABs) are invasiveexotic species that are primarily introduced inNorth European waters through ballast water ofships. Some produce important damages to themarine ecosystem such as the red tides thatcause a massive destruction of marine livingresources, including fish and bottom-livinganimals. Others are responsible for theproduction of thick foams with repellent odorsand the coloration of the beach water, causingimportant damages on beach recreation. Thisarticle reports a monetary valuation study of amarine protection program. This program focuseson the prevention of HABS along the coastlineof the Netherlands. It entails the constructionof a ballast water disposal treatment in theRotterdam harbor and the implementationof a monitoring program of the water quality inthe open sea along the North-Holland beaches.The valuation study is based on a questionnaireundertaken at Zandvoort, a famous Dutchbeach resort. The economic value of the marineprotection program includes non-market benefitsassociated with beach recreation, human healthand marine ecosystem impacts. Both contingent-valuation and travel-cost methods are used.These valuation techniques have not yet beenapplied to value HABs damages. The valuationresults indicate that the protection programmakes sense from an economic perspective aslong as its cost is, in any case, less than 225 millioneuro, and possibly less than 326 million euro, depending on how survey refusals are dealt with. Copyright Kluwer Academic Publishers 2004 congestion, contingent valuation, exotic marine species, harmful algal blooms, marine management, mixed models, monetary valuation, recreation use values, travel-cost method, 4 2004 28 8 Environmental and Resource Economics 517 532 http://hdl.handle.net/10.1023/B:EARE.0000036777.83060.b6 text/html Access to full text is restricted to subscribers. Paulo Nunes Jeroen van den Bergh
oai:RePEc:kap:enreec:v:3:y:1993:i:2:p:171-1812020-08-08RePEc:kap:enreec
article Searching for uncertain benefits and the conservation of biological diversity This paper describes a model under which the maximization of option value leads to a preference for biological diversity arising from potential substitutability among species. Copyright Kluwer Academic Publishers 1993 2 1993 3 4 Environmental & Resource Economics 171 181 http://hdl.handle.net/10.1007/BF00338783 text/html Access to full text is restricted to subscribers. Stephen Polasky Andrew Solow James Broadus
oai:RePEc:kap:enreec:v:19:y:2001:i:4:p:343-3602020-08-08RePEc:kap:enreec
article Optimal Control of Upstream Pollution under Asymmetric Information This paper derives optimal bribes to reduce upstream transfrontieremissions in the presence of asymmetric information on the polluter'sconcern for the environment. In a model in which the starting point forthe negotiations on emission reduction is a Cournot-Nash equilibrium, itis shown that transfers from the victim induce the polluting country toexaggerate its concern for the environment. As a consequence, in thesecond best solution, abatement of all but the least caring type isdistorted downward and optimal bribes may be such that more caring typesturn them down. These results are in sharp contrast to earlier policyproposals derived for a non-equilibrium starting point. They indicatethat under asymmetric information the binding incentive problem is toprevent the polluting country from claiming not to care about theenvironment and that optimal bribes from the victim should be restrictedto sufficiently environmentally concerned polluters. Copyright Kluwer Academic Publishers 2001 asymmetric information, downstream pollution, transboundary emissions, type-dependent reservation utility, 4 2001 19 8 Environmental and Resource Economics 343 360 http://hdl.handle.net/10.1023/A:1011679630804 text/html Access to full text is restricted to subscribers. Rudolf Kerschbamer rudolf.kerschbamer@univie.ac.at Nina Maderner
oai:RePEc:kap:enreec:v:57:y:2014:i:3:p:405-4292020-08-08RePEc:kap:enreec
article Willingness to Pay for Voluntary Climate Action and Its Determinants: Field-Experimental Evidence The determinants of individual, voluntary climate action (VCA) in combating climate change and its potential scale are frequently debated in public but largely underresearched. We provide estimates of the willingness to individually reduce EU greenhouse gas emissions by one ton, using the European Union Emissions Trading Scheme. Estimates are derived from an online field experiment with a large, highly heterogenous, and Internet-representative sample of voting-aged Germans. Jointly estimating willingness to pay (WTP), non-indifference to VCA, and prior knowledge, we uncover important determinants of preferences for VCA, such as education, the information structure among the population, and exogenous environmental conditions. Copyright Springer Science+Business Media Dordrecht 2014 Climate change, EU ETS, Field experiment, Online experiment, Public goods, Voluntary contributions, Voluntary climate action, Willingness to pay, C93, Q51, Q54, 3 2014 57 3 Environmental and Resource Economics 405 429 http://hdl.handle.net/10.1007/s10640-013-9686-3 text/html Access to full text is restricted to subscribers. Johannes Diederich diederich@eco.uni-heidelberg.de Timo Goeschl goeschl@eco.uni-heidelberg.de
oai:RePEc:kap:enreec:v:14:y:1999:i:1:p:33-492020-08-08RePEc:kap:enreec
article Spatial and Temporal Efficiency in Climate Policy: Applications of FUND FUND is an integrated assessment model of the interactions between climate and economy. Nine world regions emit greenhouse gases, and suffer damages from climate change. A number of greenhouse gas emission reduction policies are compared, including optimal and cost-effective strategies, strategies with early and late abatement, and strategies with and without international co-operation. The analyses confirm that co-operation matters, resulting in substantially lower costs or higher welfare. The real commitments of policy targets based on an absolute level (e.g., 1990 emissions) are hard to estimate because of the uncertainties in the baseline. Postponing action conflicts with minimising costs and maximising welfare, but so does sharp emission reduction at the short-term as proposed in the Kyoto Protocol. Copyright Kluwer Academic Publishers 1999 climate change, emission reduction, efficiency, cost-effectiveness, equity, JEL classification: Q25, Q40, 1 1999 14 7 Environmental and Resource Economics 33 49 http://hdl.handle.net/10.1023/A:1008314205375 text/html Access to full text is restricted to subscribers. Richard Tol richard.tol@ivm.vu.nl
oai:RePEc:kap:enreec:v:39:y:2008:i:1:p:25-352020-08-08RePEc:kap:enreec
article The Ecosystem Services Framework and Natural Capital Conservation Ecosystem services, Natural capital, Cast-Benefit analysis, 1 2008 39 1 Environmental and Resource Economics 25 35 http://hdl.handle.net/10.1007/s10640-007-9176-6 text/html Access to full text is restricted to subscribers. R. Turner r.k.turner@uea.ac.uk G. Daily
oai:RePEc:kap:enreec:v:26:y:2003:i:4:p:625-6462020-08-08RePEc:kap:enreec
article Multiple Species Boreal Forests – What Faustmann Missed Recent research in natural sciences shows that the dynamics in boreal forests are much more complex than what many models traditionally used in forestry economics reflect. This essay analyzes some challenges of accounting for such complexity. It shows that the optimal harvesting strategy for forest owners is history dependent and for some states of the forest, more than one strategy may be optimal.This paper confirms earlier literature on shallow lakes and coral reefs and shows that this kind of phenomena seem much more common than previously thought. They are valid for a wide range of ecosystems that cover large surfaces and they do not depend on the choice of some specific function to model the non-linearity. There are also indications that theses results could be obtained even for resources with concave growth if at least one species with non-linear growth affects their dynamics. Copyright Kluwer Academic Publishers 2003 forestry, multiple steady states, non-linear, Skiba points, 4 2003 26 12 Environmental and Resource Economics 625 646 http://hdl.handle.net/10.1023/B:EARE.0000007352.02799.0e text/html Access to full text is restricted to subscribers. Anne-Sophie Crépin asc@beijer.kva.se
oai:RePEc:kap:enreec:v:39:y:2008:i:3:p:223-2462020-08-08RePEc:kap:enreec
article Conservative dichotomous choice responses in the active policy setting: DC rejections below WTP Contingent valuation, Referendum incentives, Multinomial logit, C25, D78, Q58, 3 2008 39 3 Environmental and Resource Economics 223 246 http://hdl.handle.net/10.1007/s10640-007-9106-7 text/html Access to full text is restricted to subscribers. Michael Farmer michael.farmer@ttu.edu Clifford Lipscomb calipscomb@valdosta.edu
oai:RePEc:kap:enreec:v:37:y:2007:i:1:p:91-1092020-08-08RePEc:kap:enreec
article David Pearce and the economic valuation of biodiversity David Pearce was a pioneer in the economic valuation of biodiversity. His work powerfully influenced both later economists who worked in the field and natural scientists and practitioners who gained and appreciation of the importance of economics to their efforts. Pearce often applied the paradigm of demonstration followed by appropriation: the values of biodiversity must first be demonstrated to those who make decisions concerning its survival, and then appropriated by them. The later step will be possible when market and policy failures are rectified so as to allow the realization of conservation values. While Pearce wrote extensively on these themes, he was also acutely aware of the limitations of the paradigm. Rosy projections of values that could not be realized and appropriated would be of little practical use, and Pearce often cautioned against excesses of optimism. Yet he also clearly believed that there are compelling, if not always easily demonstrated, reasons for conservation. I argue in this paper that Pearce’s seminal work on the valuation of biodiversity cannot be understood without some appreciation of his philosophical perspective. Pearce would have described himself as a pragmatist. However, his pragmatism was grounded in the belief that it is both expedient and ethical to recognize that communities in some of the poorest corners of the world will only conserve biodiversity if they are justly compensated for the sacrifices they must make to do so. Copyright Springer Science+Business Media, Inc. 2007 Biodiversity, Valuation, Stated preference, Ethics, Development, Market failure, Policy failure, Appropriation, 1 2007 37 5 Environmental and Resource Economics 91 109 http://hdl.handle.net/10.1007/s10640-007-9109-4 text/html Access to full text is restricted to subscribers. R. Simpson dsimpson@jhu.edu
oai:RePEc:kap:enreec:v:46:y:2010:i:4:p:429-4582020-08-08RePEc:kap:enreec
article Distributional Preferences and the Incidence of Costs and Benefits in Climate Change Policy Climate change, Distributional preferences, Equity, Regressivity, Stated preference, Payment vehicle, Construct validity, C35, C83, H41, Q51, Q54, 4 2010 46 8 Environmental and Resource Economics 429 458 http://hdl.handle.net/10.1007/s10640-010-9348-7 text/html Access to full text is restricted to subscribers. Beilei Cai Trudy Cameron cameron@uoregon.edu Geoffrey Gerdes
oai:RePEc:kap:enreec:v:63:y:2016:i:2:d:10.1007_s10640-015-9928-72020-08-08RePEc:kap:enreec
article Empirical Testing of Genuine Savings as an Indicator of Weak Sustainability: A Three-Country Analysis of Long-Run Trends Abstract Genuine Savings has emerged as a widely-used indicator of sustainable development. This approach to conceptualising what sustainability is about has strong links to work published by Anil Markandya and colleagues over 20 years ago. In this paper, we use long-term data stretching back to 1870 to undertake empirical tests of the relationship between Genuine Savings (GS) and future well-being for three countries: Britain, the USA and Germany. Our tests are based on an underlying theoretical relationship between GS and changes in the present value of future consumption. Based on both single country and panel results, we find evidence supporting the existence of a cointegrating (long run equilibrium) relationship between GS and future well-being, and fail to reject the basic theoretical result on the relationship between these two macroeconomic variables. This provides some support for the GS measure of weak sustainability. Weak sustainability, Genuine savings, Comprehensive investment, Economic history, Sustainable development indicators, Cointegration 2 2016 63 2 6 Environmental and Resource Economics 313 338 http://link.springer.com/10.1007/s10640-015-9928-7 text/html Abstract Nick Hanley ndh3@st-andrews.ac.uk University of St. Andrews Les Oxley University of Waikato David Greasley University of Edinburgh Eoin McLaughlin University of St. Andrews Matthias Blum Queens University Belfast
oai:RePEc:kap:enreec:v:35:y:2006:i:1:p:1-182020-08-08RePEc:kap:enreec
article Firms’ Compliance to Environmental Regulation: Is There Really a Paradox? It has often been claimed that firms’ compliance to environmental regulations is higher than predicted by standard theory, a result labeled the “Harrington paradox” in the literature. Enforcement data from Norway presented here appears, at first glance, to confirm this “stylized fact”: firms are inspected less than once a year, detected violators are seldom fined, but still, serious violations seem relatively rare. However, at a closer look, the pattern seems less paradoxical: enforcement of minor violations is lax, but such violations do flourish; serious violations, on the other hand, are subject to credible threats of harsh punishment, and such violations are more uncommon. This seems quite consistent with predictions from standard theory. We argue that the empirical existence of the Harrington paradox is not well documented in the international literature. The claim that firms’ compliance with environmental regulations is generally higher than predicted by standard theory should thus be regarded as a hypothesis rather than an established fact. Copyright Springer Science+Business Media, Inc. 2006 compliance, enforcement, environmental performance, Harrington paradox, K32, K42, Q28, L51, 1 2006 35 9 Environmental and Resource Economics 1 18 http://hdl.handle.net/10.1007/s10640-006-9001-7 text/html Access to full text is restricted to subscribers. Karine Nyborg Kjetil Telle kjetil.telle@ssb.no
oai:RePEc:kap:enreec:v:59:y:2014:i:4:p:633-6572020-08-08RePEc:kap:enreec
article The Effect of Gasoline Taxes and Public Transit Investments on Driving Patterns This paper analyzes how driving patterns are affected by gasoline taxes and the availability of a substitute for driving—public transportation. We develop a measure of transportation substitutability based on the difference between individuals’ predicted commute times by private and public transit, conditional upon their demographic characteristics and geographic location. Improved substitutability decreases annual vehicle miles traveled (VMT) by inducing modal shifts to public transit, though gasoline taxes are found to have a much larger impact on VMT. Our results imply that a policy that raises gasoline taxes and recycles the revenues into public transit improvements can have even larger impacts on driving patterns than either policy alone. Copyright Springer Science+Business Media Dordrecht 2014 Driving patterns, Elasticity of demand for driving , Gasoline prices, Public transportation, Sorting, 4 2014 59 12 Environmental and Resource Economics 633 657 http://hdl.handle.net/10.1007/s10640-013-9753-9 text/html Access to full text is restricted to subscribers. Elisheba Spiller espiller@edf.org Heather Stephens Heather.Stephens@csulb.edu Christopher Timmins timmins@econ.duke.edu Allison Smith absmith0919@gmail.com
oai:RePEc:kap:enreec:v:8:y:1996:i:3:p:273-2912020-08-08RePEc:kap:enreec
article The political economy of green taxes: The Belgian experience This article deals with the main problems encountered with the implementation of the ecotax law in Belgium. Ecotaxes are product taxes on drink containers, throw-away products, packaging of certain industrial goods, pesticides and fytopharmaceutical products, paper and batteries. The implementation of these taxes is supervised by a special commission of experts. It proves to be a complex tax, where fiscal, political and institutional problems are serious barriers that have to be overcome. Copyright Kluwer Academic Publishers 1996 fiscality, public choice, economic instruments, 3 1996 8 10 Environmental & Resource Economics 273 291 http://hdl.handle.net/10.1007/BF00339078 text/html Access to full text is restricted to subscribers. M. Clercq
oai:RePEc:kap:enreec:v:46:y:2010:i:3:p:281-3022020-08-08RePEc:kap:enreec
article Incentive Contracts for Natura 2000 Implementation in Forest Areas Adverse selection, Conservation contracts, Forest, Incentives, Limited liability, Moral hazard, Natura 2000, Uncertain outcome, D82, Q23, Q57, 3 2010 46 7 Environmental and Resource Economics 281 302 http://hdl.handle.net/10.1007/s10640-009-9341-1 text/html Access to full text is restricted to subscribers. Signe Anthon signeanthon@gmail.com Serge Garcia garcia@nancy-engref.inra.fr Anne Stenger stenger@nancy-engref.inra.fr
oai:RePEc:kap:enreec:v:58:y:2014:i:2:p:199-2182020-08-08RePEc:kap:enreec
article Interspecies Management and Land Use Strategies to Protect Endangered Species We consider an ecosystem management problem where managers can use habitat creation and predator removal to conserve an endangered species. Predator removal may become particularly important in the face of habitat loss, and ecosystem management strategies that ignore the influence of habitat are likely to be inefficient. Using a bioeconomic model, we show that the marginal impact of prey habitat on predators is a key factor in determining the substitutability or complementarity of habitat and removal controls. Applying the model to the case of the endangered Atlantic-Gaspésie Woodland Caribou (rangifer tarandus caribou), we find that the first-best strategy involves extensive caribou habitat protection and a large predator cull initially, and then substituting habitat investments for predator removal as both populations begin to recover, suggesting that habitat protection and predator removal are effectively substitute controls. Copyright Springer Science+Business Media Dordrecht 2014 Ecosystem management, Habitat loss, Conservation reliant, Endangered species, Predation, Caribou, Optimal control, 2 2014 58 6 Environmental and Resource Economics 199 218 http://hdl.handle.net/10.1007/s10640-013-9699-y text/html Access to full text is restricted to subscribers. Richard Melstrom rtmelstrom@salisbury.edu Richard Horan horan@msu.edu
oai:RePEc:kap:enreec:v:46:y:2010:i:4:p:511-5372020-08-08RePEc:kap:enreec
article Corruption and the Political Economy of Resource-Based Development: A Comparison of Asia and Sub-Saharan Africa Adjusted net savings, Asia, Corruption, Resource curse, Sub-Saharan Africa, Q01, O13, 4 2010 46 8 Environmental and Resource Economics 511 537 http://hdl.handle.net/10.1007/s10640-010-9352-y text/html Access to full text is restricted to subscribers. Edward Barbier ebarbier@uwyo.edu
oai:RePEc:kap:enreec:v:51:y:2012:i:3:p:371-3892020-08-08RePEc:kap:enreec
article Scale, Technique and Composition Effects in Trade-Related Carbon Emissions in China Scale effect, Technique effect, Composition effect, Trade, Carbon emissions, Input–output model, Structural decomposition analysis, Q56, C67, Q54, C63, 3 2012 51 3 Environmental and Resource Economics 371 389 http://hdl.handle.net/10.1007/s10640-011-9503-9 text/html Access to full text is restricted to subscribers. Youguo Zhang zhyouguo@cass.org.cn
oai:RePEc:kap:enreec:v:5:y:1995:i:2:p:191-2192020-08-08RePEc:kap:enreec
article Trade-offs in sulfur emission trading in Europe How to implement emission trading is one question in the current negotiations on a new sulfur protocol in Europe. Whereas the current protocol stipulates a 30 percent uniform reduction, national emission ceilings included in the proposed new protocol imply differentiated reductions. In addition, emission and fuel standards are proposed. This paper examines the costs and environmental impacts of emission trading. Emission trading combined with regulations is a new element in the paper. Calculations using the RAINS (Regional Acidification INformation and Simulation) model suggest that overlaying emission trading on regulations not only reduces the cost savings but has beneficial impacts as well: ecosystem protection is not changed and significant decreases in environmental benefits for countries are largely avoided. Emission trading can also be used to decrease emissions and increase ecosystem protection. If combined with existing legislation, emission trading minimizes losses in expected environmental benefits for some countries, and most countries gain. However, the initial distribution of emission ceilings has to be used so that some countries are not confronted with higher costs. Trade-offs appear to exist between the use of emission trading to achieve cost savings on the one hand, and ecosystem protection and distributional equity on the other. Copyright Kluwer Academic Publishers 1995 Emission trading, sulfur, acid rain, costs, Europe, 2 1995 5 3 Environmental & Resource Economics 191 219 http://hdl.handle.net/10.1007/BF00693023 text/html Access to full text is restricted to subscribers. Ger Klaassen
oai:RePEc:kap:enreec:v:43:y:2009:i:2:p:209-2292020-08-08RePEc:kap:enreec
article Land Use Change with Spatially Explicit Data: A Dynamic Approach Land use, Deforestation, Discrete choice dynamic optimization, Dynamic optimization, 2 2009 43 6 Environmental and Resource Economics 209 229 http://hdl.handle.net/10.1007/s10640-008-9232-x text/html Access to full text is restricted to subscribers. Alessandro Pinto alex_depinto@redlands.edu Gerald C. Nelson
oai:RePEc:kap:enreec:v:24:y:2003:i:3:p:213-2332020-08-08RePEc:kap:enreec
article Environmental Management and the Competitiveness of Nature-Based Tourism Destinations Environmental management at nature-basedtourism destinations includes a private and apublic component. The former refers tovoluntary environmental protection activitiescarried out by individual (and groups of)tourism operators. These activities aremotivated by the dependence of the productprovided by the tourism industry on the qualityof the natural environment. Public sectormanagement, on the other hand, refers to theenvironmental regulations imposed on tourismbusinesses. The overall environmentalmanagement structure has a dual effect on thecompetitiveness of the tourism industry atnature-based tourism destinations. While theindustry may benefit from environmentalmanagement through demand stimulation, thetourism businesses also incur the associatedmanagement related costs. In this paper, theoverall effect of environmental management oncompetitiveness, as measured by aggregatetourism industry profitability, is estimated ina case study of Tropical North Queensland. Copyright Kluwer Academic Publishers 2003 competitiveness, environmental management, region, tourism, 3 2003 24 3 Environmental and Resource Economics 213 233 http://hdl.handle.net/10.1023/A:1022942001100 text/html Access to full text is restricted to subscribers. Twan Huybers t.huybers@adfa.edu.au Jeff Bennett
oai:RePEc:kap:enreec:v:34:y:2006:i:3:p:347-3632020-08-08RePEc:kap:enreec
article Valuing Environmental Health Effects – An Economic Perspective This paper provides an overview of some of the issues involved in comparing benefit-cost analysis and cost-effectiveness analysis based on quality-adjusted life-years as alternative approaches to assessing environmental policies that affect human health. It concludes that: (i) although QALYs have the advantage of reflecting policy impacts on both health status and longevity in a single scalar measure, they are not consistent with utility theory unless individuals’ preferences satisfy some restrictive conditions; (ii) they do not capture other important aspects of the valuation of changes in mortality and morbidity; (iii) cost-effectiveness analysis based on QALYs as a measure of effectiveness omits non-health related effects of environmental policy; and (iv) it leaves unanswered the important question of what level of environmental regulation is appropriate. Copyright Springer 2006 benefit-cost analysis, cost-effectiveness analysis, morbidity, mortality, quality-adjusted life-years (QALYs), value of statistical life (VSL), willingness-to-pay, D61, I18, Q51, 3 2006 34 7 Environmental and Resource Economics 347 363 http://hdl.handle.net/10.1007/s10640-006-9002-6 text/html Access to full text is restricted to subscribers. A. Freeman rfreeman@bowdoin.edu
oai:RePEc:kap:enreec:v:55:y:2013:i:1:p:141-1582020-08-08RePEc:kap:enreec
article Environmental Regulation Induced Foreign Direct Investment The last decade has witnessed a renewed interest in the relationship between environmental regulations and international capital flows. However, empirical studies have so far failed to find conclusive evidence for this so-called pollution haven or race to the bottom effect where foreign direct investment (FDI) is assumed to be attracted to low regulation countries, regions or states. In this paper we present a simple theoretical framework to demonstrate that greater stringency in environmental standards can lead to a strategic increase in capital inflows which we refer to as environmental regulation induced FDI. Our result reveals a possible explanation for the mixed results in the empirical literature and provides an illustration of the conditions under which environmental regulations in the host country can affect the location decision of foreign firms. Copyright Springer Science+Business Media Dordrecht 2013 FDI, Environmental regulations, Pollution halo, 1 2013 55 5 Environmental and Resource Economics 141 158 http://hdl.handle.net/10.1007/s10640-012-9620-0 text/html Access to full text is restricted to subscribers. Robert Elliott r.j.elliott@bham.ac.uk Ying Zhou Zhouy8@aston.ac.uk
oai:RePEc:kap:enreec:v:7:y:1996:i:4:p:357-3732020-08-08RePEc:kap:enreec
article Reserve characteristics and mining costs An empirical study of the phosphate industry This paper deals with an estimation of phosphate mining cost function. Here, it is argued that other characteristics of reserves, besides their size, could be quite important in the cost function. The result of a cross-sectional analysis of phosphate mining in the world shows that reserve size and average total cost have a positive and modest statistically significant relationship in one of the two models. Among many qualitative characteristics and location factors tested in this paper, overburden, grade, ore/product ratio, water availability, and the price of capital are significant with expected signs. Finally, the results confirm the existence of economies of scale in phosphate mining which seem to be more related to mining technology than to reserve size. Copyright Kluwer Academic Publishers 1996 phosphate mining, extract cost function, ore/product ratio, 4 1996 7 6 Environmental and Resource Economics 357 373 http://hdl.handle.net/10.1007/BF00369624 text/html Access to full text is restricted to subscribers. A. fnMarvasti
oai:RePEc:kap:enreec:v:63:y:2016:i:1:p:79-932020-08-08RePEc:kap:enreec
article Common Pool Politics and Inefficient Fishery Management Fisheries management often fails because total allowable catches (TACs) are set at inefficiently high levels. To study why decision-makers choose such high TACs, we model the annual negotiation on TACs as a dynamic game in discrete time. TACs are fixed by majority decision in a council consisting of decision-makers who are heterogeneous with respect to their discount rates. We show that the optimal feedback strategy for the less patient decision-makers will set inefficiently high TACs in Markov-perfect Nash equilibrium. A binding commitment to a long-term management plan could help solving this problem and lead to a more sustainable fishery management. Copyright Springer Science+Business Media Dordrecht 2016 Fisheries, Fishery economics, Environmental uncertainty, Constant escapement, Political economy, Dynamic game theory, Q22, Q57, D78, 1 2016 63 1 Environmental and Resource Economics 79 93 http://hdl.handle.net/10.1007/s10640-014-9842-4 text/html Access to full text is restricted to subscribers. Julia Hoffmann j.hoffmann@economics.uni-kiel.de Martin Quaas quaas@economics.uni-kiel.de
oai:RePEc:kap:enreec:v:2:y:1992:i:4:p:435-4372020-08-08RePEc:kap:enreec
article Taking Nature into Account: Proposed scheme of resource and environmental accounting 4 1992 2 7 Environmental & Resource Economics 435 437 http://hdl.handle.net/10.1007/BF00304971 text/html Access to full text is restricted to subscribers. Edward Barbier
oai:RePEc:kap:enreec:v:43:y:2009:i:1:p:63-792020-08-08RePEc:kap:enreec
article Benefit Incidence of Public Recreation Areas—Have the Winners Taken Almost All? Distribution, Household, Public goods, Income, D13, D3, Q26, Q51, 1 2009 43 5 Environmental and Resource Economics 63 79 http://hdl.handle.net/10.1007/s10640-008-9252-6 text/html Access to full text is restricted to subscribers. Anni Huhtala anni.huhtala@mtt.fi Eija Pouta
oai:RePEc:kap:enreec:v:48:y:2011:i:1:p:43-582020-08-08RePEc:kap:enreec
article Energy Conservation More Effective With Rebound Policy Backfire, Developing countries, Jevons’ paradox, Rebound mechanisms, Relieving limits, Tradable permits, Q43, Q48, Q54, Q55, Q58, 1 2011 48 1 Environmental and Resource Economics 43 58 http://hdl.handle.net/10.1007/s10640-010-9396-z text/html Access to full text is restricted to subscribers. Jeroen Bergh jeroen.bergh@uab.es
oai:RePEc:kap:enreec:v:43:y:2009:i:4:p:473-5022020-08-08RePEc:kap:enreec
article Eliciting Willingness to Pay without Bias using Follow-up Certainty Statements: Comparisons between Probably/Definitely and a 10-point Certainty Scale Certainty statements, Contingent valuation, Field experiments, Hypothetical bias, Willingness to pay, C93, D61, I10, 4 2009 43 8 Environmental and Resource Economics 473 502 http://hdl.handle.net/10.1007/s10640-008-9242-8 text/html Access to full text is restricted to subscribers. Glenn Blomquist gcblom@uky.edu Karen Blumenschein kbluml@uky.edu Magnus Johannesson magnus.johannesson@hhs.se
oai:RePEc:kap:enreec:v:44:y:2009:i:2:p:287-3052020-08-08RePEc:kap:enreec
article Conflicting Interests in Environmental Policy-making? Compensating variation, Distributional effects, Electricity taxation, Excess tax burden, Household energy consumption, Linear expenditure system, Micro-econometrics, C31, D12, D39, 2 2009 44 10 Environmental and Resource Economics 287 305 http://hdl.handle.net/10.1007/s10640-009-9286-4 text/html Access to full text is restricted to subscribers. Bente Halvorsen bente.halvorsen@ssb.no
oai:RePEc:kap:enreec:v:11:y:1998:i:3:p:399-4112020-08-08RePEc:kap:enreec
article Bioeconomic Analysis and Management This article discusses bioeconomic analysis and different management strategies in fisheries. It reviews recent developments, which show the need to expand the analysis to multispecies fisheries and management. Significant gains can be made if the interdependencies between species and/or jointness in inputs for many fisheries are identified. Both common property resource management and individual transferable quotas (ITQs) can be fruitful strategies in different settings. The article suggests that there is scope for the development of a multiple use management approach of marine resources. Besides the aim of an efficient use of fish stocks, equal attention should be given to other values from aquatic ecosystems, like ecological services, biodiversity and recreation possibilities. Copyright Kluwer Academic Publishers 1998 bioeconomics, fisheries management, 3 1998 11 4 Environmental and Resource Economics 399 411 http://hdl.handle.net/10.1023/A:1008211800163 text/html Access to full text is restricted to subscribers. Håkan Eggert hakan.eggert@economics.gu.se
oai:RePEc:kap:enreec:v:41:y:2008:i:2:p:133-1542020-08-08RePEc:kap:enreec
article Eco-labelling, Competition and Environment: Endogenization of Labelling Criteria Eco-label, Labelling criteria, Environmental quality, Price competition, Firms’ position, C72, L13, Q20, 2 2008 41 10 Environmental and Resource Economics 133 154 http://hdl.handle.net/10.1007/s10640-007-9184-6 text/html Access to full text is restricted to subscribers. Adel Ben Youssef adel.ben-youssef@u-psud.fr Rim Lahmandi-Ayed rim_lahmandi@yahoo.com
oai:RePEc:kap:enreec:v:64:y:2016:i:1:d:10.1007_s10640-015-9934-92020-08-08RePEc:kap:enreec
article Valuing Water Purification by Forests: An Analysis of Malaysian Panel Data Abstract Water purification might be the most frequently invoked example of an economically valuable ecosystem service, yet the impacts of upstream land use on downstream municipal water treatment costs remain poorly understood. This is especially true in developing countries, where rates of deforestation are highest and cost-effective expansion of safe water supplies is needed the most. We present the first econometric study to estimate directly the effect of tropical forests on water treatment cost. We exploit a rich panel dataset from Malaysia, which enables us to control for a wide range of potentially confounding factors. We find significant, robust evidence that protecting both virgin and logged forests against conversion to nonforest land uses reduced water treatment costs, with protection of virgin forests reducing costs more. The marginal value of this water purification service varied greatly across treatment plants, thus implying that the service offered a stronger rationale for forest protection in some locations than others. On average, the service value was large relative to treatment plants’ expenditures on priced inputs, but it was very small compared to producer surpluses for competing land uses. For various reasons, however, the latter comparison exaggerates the shortfall between the benefits and the costs of enhancing water purification by protecting forests. Moreover, forest protection decisions that appear to be economically unjustified when only water purification is considered might be justified when a broader range of services is taken into account. Ecosystem service, Water purification, Forest, Malaysia, Valuation 1 2016 64 5 4 Environmental and Resource Economics 59 80 http://link.springer.com/10.1007/s10640-015-9934-9 text/html Abstract Jeffrey R. Vincent Jeff.Vincent@duke.edu Duke University Ismariah Ahmad Forest Research Institute Malaysia Norliyana Adnan Forest Research Institute Malaysia Walter B. Burwell Duke University Subhrendu K. Pattanayak Duke University Jie-Sheng Tan-Soo Duke University Kyle Thomas Duke University
oai:RePEc:kap:enreec:v:38:y:2007:i:3:p:407-4322020-08-08RePEc:kap:enreec
article Upstream and downstream pollution taxations in vertically related markets with imperfect competition Input price discrimination, Abatement heterogeneity, Pollution taxation, Green tax reform, Q58, H23, D43, 3 2007 38 11 Environmental and Resource Economics 407 432 http://hdl.handle.net/10.1007/s10640-007-9085-8 text/html Access to full text is restricted to subscribers. Hajime Sugeta sugeta@ipcku.kansai-u.ac.jp Shigeru Matsumoto
oai:RePEc:kap:enreec:v:22:y:2002:i:1:p:271-2962020-08-08RePEc:kap:enreec
article Is Meta-Analysis a Noah's Ark for Non-Market Valuation? This paper describes meta-analytical methods as they have been appliedto non-market valuation research. These studies have been used to reviewand synthesize literature and, more recently, in benefit transfer. Thissecond use imposes a higher standard on the consistency in economicconcepts being summarized and in the resources included in ameta-analysis. To meet this need, the paper proposes and illustrates astructural framework using a generalized method of moments estimator toestimate the parameters of a preference function with the benefitsestimates usually encountered in meta-analytic summaries. Copyright Kluwer Academic Publishers 2002 benefit transfer, meta-analysis, 1 2002 22 6 Environmental and Resource Economics 271 296 http://hdl.handle.net/10.1023/A:1015567316109 text/html Access to full text is restricted to subscribers. V. Smith kerry_smith@ncsu.edu Subhrendu Pattanayak
oai:RePEc:kap:enreec:v:36:y:2007:i:1:p:57-842020-08-08RePEc:kap:enreec
article Efficient Dynamic Pollution Taxation in an Uncertain Environment This paper analyzes efficient pollution taxation within a stochastic model of endogenous growth. Pollution is a by-product of production and causes disutility. Furthermore, the productivity which results from environmental quality is uncertain. This reflects e.g. uncertain capital depreciation induced by natural disasters like hurricanes or floods. This uncertainty is shown to raise an ambiguous impact on the optimal pollution level as well as on optimal environmental taxation. Market equilibrium turns out to be suboptimal, since the households mis-perceive their individual impact on pollution. Conditions for welfare maximizing pollution taxation are stated and it is shown that a direct pollution tax is not appropriate to yield Pareto-optimal growth. Instead, a linear capital income tax together with a linear abatement subsidy build an efficient tax scheme, if secondarily the governmental budget is balanced. Moreover, an increase in the riskiness of environmental productivity may even lead to an increase in the optimal pollution level and to a decrease in optimal environmental taxation, depending predominantly on the preference parameters. Copyright Springer Science+Business Media, Inc. 2007 pollution, taxation, uncertainty, endogenous growth, D8, D9, H2, O1, O4, Q2, 1 2007 36 1 Environmental and Resource Economics 57 84 http://hdl.handle.net/10.1007/s10640-006-9041-z text/html Access to full text is restricted to subscribers. Susanne Soretz soretz@vwl.uni-hannover.de
oai:RePEc:kap:enreec:v:49:y:2011:i:4:p:573-5962020-08-08RePEc:kap:enreec
article Loss Aversion and Individual Characteristics Discrete choice model, Fixed effects logit estimator, Loss aversion, Non-market goods, Stated preference data, C25, D12, Q51, 4 2011 49 8 Environmental and Resource Economics 573 596 http://hdl.handle.net/10.1007/s10640-010-9455-5 text/html Access to full text is restricted to subscribers. Katrine Hjorth khj@transport.dtu.dk Mogens Fosgerau
oai:RePEc:kap:enreec:v:41:y:2008:i:4:p:579-5942020-08-08RePEc:kap:enreec
article Willingness to Pay for Car Safety: Evidence from Sweden Background risk, Car safety, Hedonic pricing, Non-marginal willingness to pay, C51, D61, J28, 4 2008 41 12 Environmental and Resource Economics 579 594 http://hdl.handle.net/10.1007/s10640-008-9213-0 text/html Access to full text is restricted to subscribers. Henrik Andersson henrik.andersson@vti.se
oai:RePEc:kap:enreec:v:28:y:2004:i:3:p:347-3652020-08-08RePEc:kap:enreec
article Frictions in Project-Based Supply of Permits Emissions trading in climate change can entail large overall cost savings and transfers between developed and developing countries. However, the search for acceptable JI or CDM projects implies a deviation from the perfect market framework used in previous estimations. Our model combines the search market for projects with a frictionless permit market to quantify the supply-side frictions in the CO 2 market. We also decompose the effects of frictions into the effects of search friction, bargaining, and bilateralism. A calibration using previous cost estimates of CO 2 reductions illustrate changes in cost savings and allocative implications. Copyright Kluwer Academic Publishers 2004 climate change, matching, pollution permits, 3 2004 28 7 Environmental and Resource Economics 347 365 http://hdl.handle.net/10.1023/B:EARE.0000031060.86739.28 text/html Access to full text is restricted to subscribers. Matti Liski Juha Virrankoski juha.virrankoski@helsinki.fi
oai:RePEc:kap:enreec:v:48:y:2011:i:3:p:511-5352020-08-08RePEc:kap:enreec
article Local Transportation Policy and the Environment Pollution, Transportation, Road pricing, Public transport subsidies, Driving restrictions, Q53, R41, 3 2011 48 3 Environmental and Resource Economics 511 535 http://hdl.handle.net/10.1007/s10640-010-9447-5 text/html Access to full text is restricted to subscribers. Armin Schmutzler armin.schmutzler@uzh.ch
oai:RePEc:kap:enreec:v:15:y:2000:i:2:p:159-1772020-08-08RePEc:kap:enreec
article Energy Tax and Competition in Energy Efficiency: The Case of Consumer Durables The purpose of this paper is to analyze the role of anenergy tax on technical improvements and on prices ofconsumer durables induced by strategic competition inenergy efficiency. If the gasoline tax is raised thisdoes in principle not affect the producers of carsbecause the motorist pays for it in terms of a highercost of using the car. This, however, affects the unitsales of car producers because of substitution towardsother modes of transportation. A second element ofreaction to energy price variation is an indirect oneand relates to the effect of energy prices ontechnology. Competition forces car producers todevelop more energy efficient cars in order to reducethe cost of using a car. This indirect effect canpartly offset the direct effect of higher energyprices on demand if it is profitable for theautomobile industry to engineer more energy efficientequipment. We will analyze the impact of an energy taxon energy efficiency and on the price of a durablegood. This will be done within the framework of aduopoly competing in prices and in the energyefficiency of its products. The government chooses awelfare maximizing energy tax as an incentive toinnovate. Then we will analyze a strategic two-stagedecision process in which the duopolists first decideabout energy efficiency and then compete in prices. Copyright Kluwer Academic Publishers 2000 energy saving technical change, consumer durables, second best energy tax, price competition, 2 2000 15 2 Environmental and Resource Economics 159 177 http://hdl.handle.net/10.1023/A:1008362416293 text/html Access to full text is restricted to subscribers. K. Conrad kconrad@rumms.uni-mannheim.de
oai:RePEc:kap:enreec:v:9:y:1997:i:3:p:365-3812020-08-08RePEc:kap:enreec
article Intertemporal effects of environmental mandates Environmental mandates can impose large costs on the businesses that must comply with them. Understanding the effects of those costs on production decisions may require a dynamic framework if environmental damages (and the costs of complying with mandates) depend on cumulative production or the passage of time. This paper focuses on the time dimension of general categories of fixed and variable costs arising from different types of mandates. The paper develops an optimal control model to predict how such costs may jointly affect current production rates, plant closure dates, and cumulative production. Theoretical results, derived from the comparative statics of the system of equations describing the solution to that model, identify circumstances in which the policy goals of greater production and greater environmental protection may not allways be at odds. Copyright Kluwer Academic Publishers 1997 environmental management, firm behavior, intertemporal choice, 3 1997 9 4 Environmental & Resource Economics 365 381 http://hdl.handle.net/10.1007/BF02441405 text/html Access to full text is restricted to subscribers. Richard Farmer
oai:RePEc:kap:enreec:v:49:y:2011:i:3:p:367-3852020-08-08RePEc:kap:enreec
article The Stochastic Convergence of CO 2 Emissions: A Long Memory Approach Fractional integration, Local Whittle estimation, 3 2011 49 7 Environmental and Resource Economics 367 385 http://hdl.handle.net/10.1007/s10640-010-9437-7 text/html Access to full text is restricted to subscribers. Marco Barassi m.r.barassi@bham.ac.uk Matthew Cole Robert Elliott
oai:RePEc:kap:enreec:v:26:y:2003:i:3:p:401-4162020-08-08RePEc:kap:enreec
article A New Approach to Random Utility Modeling using the Dirichlet Multinomial Distribution In this paper we introduce a new econometricapproach to analyzing recreational site choicedata, the Dirichlet multinomial model. Thismodel, which nests the standard conditionalmultinomial logit model, can accommodateover-dispersed data and may provide moreefficient estimators of coefficients andconsequent welfare measures than the standardconditional logit model, which is so widelyused in the Random Utility Model approach torecreation demand. We illustrate thisDirichlet approach using a data set of rockclimbers in Scotland, and study the impacts onper-trip consumers surplus of alternativemanagement strategies for popular rock climbingsites. Results show that the Dirichletmultinomial approach produces coefficient andwelfare estimates having smaller samplingvariability in this case. We also compareclassical welfare measures with their posteriorequivalents, which allow for welfare changes tobe dis-aggregated. Copyright Kluwer Academic Publishers 2003 Dirichlet multinomial, posterior welfare measures, Random Utility Models, recreational demand modelling, rock climbing, 3 2003 26 11 Environmental and Resource Economics 401 416 http://hdl.handle.net/10.1023/B:EARE.0000003597.88521.24 text/html Access to full text is restricted to subscribers. J. Shonkwiler Nick Hanley n.d.hanley@socsci.gla.ac.uk.
oai:RePEc:kap:enreec:v:46:y:2010:i:4:p:495-5092020-08-08RePEc:kap:enreec
article Trade of Permits for Greenhouse Gas Emissions: Bilateral Trade Need not be the Answer Terms-of-trade, Asymmetric externalities, Permits trade, D62, F18, 4 2010 46 8 Environmental and Resource Economics 495 509 http://hdl.handle.net/10.1007/s10640-010-9351-z text/html Access to full text is restricted to subscribers. Roberto Burguet roberto.burguet@iae.csic.es Jaume Sempere jsempe@colmex.mx
oai:RePEc:kap:enreec:v:34:y:2006:i:2:p:291-3152020-08-08RePEc:kap:enreec
article Privatization of Water-Resource Development This paper analyzes the inefficiencies from market power and return-flow externalities in private construction of a water project. The model pays special attention to increasing groundwater pumping costs, project set-up costs, limited project capacity, and return flow to the aquifer. For a given capacity, the return-flow externality causes project owners to construct the project too late when the price of groundwater is too high because the external benefit of return-flow to the aquifer is not captured. Market power exacerbates these effects since the project owner delays construction to accelerate groundwater overdraft. The return-flow externality and market power also decrease installed capacity and increase overdraft from the aquifer. Applying the model to the construction of the Central Arizona Project (CAP) for a given capacity, the estimated deadweight loss from hypothetical private construction of the project ($0.853 billion) is substantially less than the literature’s estimate of deadweight loss from actual construction by the Bureau of Reclamation ($2.603 billion). However, under the federal subsidies and insecure property rights that accompanied the CAP, private construction results in a larger estimated efficiency loss ($6.126 billion). Copyright Springer 2006 Central Arizona Project, groundwater, optimal control, privatization, return flow, surface water, water, water project construction, H0, L9, Q2, Q3, 2 2006 34 06 Environmental & Resource Economics 291 315 http://hdl.handle.net/10.1007/s10640-006-0002-3 text/html Access to full text is restricted to subscribers. Stephen Holland sphollan@uncg.edu
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article Rucha Ghate, Narpat S. Jodha and Pranab Mukhopadhyay (eds): Promise, Trust and Evolution–Managing the Commons in South Asia 1 2009 42 1 Environmental and Resource Economics 137 138 http://hdl.handle.net/10.1007/s10640-008-9241-9 text/html Access to full text is restricted to subscribers. J. Bouma jetske.bouma@ivm.vu.nl
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article On the Productive Value of Biodiversity Biodiversity, Productive value, Complementarity, Scale, Convexity, Catalytic effect, D6, Q2, Q5, 1 2009 42 1 Environmental and Resource Economics 109 131 http://hdl.handle.net/10.1007/s10640-008-9206-z text/html Access to full text is restricted to subscribers. Jean-Paul Chavas jchavas@wisc.edu
oai:RePEc:kap:enreec:v:12:y:1998:i:4:p:479-4952020-08-08RePEc:kap:enreec
article Multiple Criteria Decision Making: A Case Study of the Columbia River Salmon Recovery Plan A common problem faced by decision makers is choosing the best alternative from among many. Traditionally, such decisions in the public arena were made using benefit-cost analysis, which involves the conversion of all costs and benefits associated with a project into monetary terms. But public projects often have a variety of economic, ecological, social and political objectives, many of which cannot or perhaps should not be converted to monetary terms. In such projects decisions must be made based on multiple, even conflicting objectives. Multiple criteria decision making (MCDM) methods are widely used for such decisions. However, a common disadvantage among many such methods available in the literature is that they require input from a real decision maker. This paper presents the development and application of an expert system based on fuzzy set theory and IF-THEN rules. The system mimics a real decision maker. Along with two conventional MCDM methods the developed expert system was applied on a data set from the Columbia River Basin salmon recovery plan to assess its potential usefulness as a decision-making tool for natural resource projects. The results suggest that the fuzzy expert system is easy to develop and makes better decisions than the other two conventional MCDM methods used. Copyright Kluwer Academic Publishers 1998 multi-criteria decision making, economic efficiency, fuzzy logic, decision analysis, 4 1998 12 12 Environmental and Resource Economics 479 495 http://hdl.handle.net/10.1023/A:1008286627880 text/html Access to full text is restricted to subscribers. Elizabeth Gurocak Norman Whittlesey
oai:RePEc:kap:enreec:v:58:y:2014:i:1:p:59-892020-08-08RePEc:kap:enreec
article The Energy-Bias of North–South Technology Spillovers: A Global, Bilateral, Bisectoral Trade Analysis We examine variations in the South–North ratios (emerging vs. industrialized countries) of energy and labor intensities driven by imports. We use the novel World input-output database that provides bilateral and bisectoral data for 40 countries and 35 sectors for 1995–2009. We find South–North convergence of energy and labor intensities, an energy bias of import-driven convergence and no robust difference between imports of intermediate and investment goods. Accordingly, trade helps emerging economies follow a ‘green growth’ path, and trade-related policies can enhance this path. However, the effects are economically small and require a long time horizon to become effective. Trade-related policies can become much more effective in selected countries and sectors: China attenuates labor intensity via imports of intermediate goods above average. Brazil reduces energy intensity via imports of intermediate and investment goods above average. Production of machinery as an importing sector in emerging countries can immoderately benefit from trade-related reductions in factor intensities. Electrical equipment as a traded good particularly decreases energy intensity. Machinery particularly dilutes labor intensity. Our main results are statistically highly significant and robust across specifications. Copyright Springer Science+Business Media Dordrecht 2014 Energy intensity, Labor intensity, Trade, Technology diffusion, Convergence, Emerging countries, C23, F18, F21, O13, O33, O47, Q43, 1 2014 58 5 Environmental and Resource Economics 59 89 http://hdl.handle.net/10.1007/s10640-013-9690-7 text/html Access to full text is restricted to subscribers. Michael Hübler huebler@zew.de Alexander Glas
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article An Analysis of Storage Capacity Reallocation Impacts on the Irrigation Sector Environmental flow, Irrigation, Storage capacity, Water price, Water storage, Water storage market, 1 2012 51 1 Environmental and Resource Economics 141 159 http://hdl.handle.net/10.1007/s10640-011-9492-8 text/html Access to full text is restricted to subscribers. Chi Truong chi.truong@efs.mq.edu.au
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article Dealing with Ignored Attributes in Choice Experiments on Valuation of Sweden’s Environmental Quality Objectives Choice experiment, Environmental quality objectives, Follow-up question, Ignoring attributes, WTP, D61, Q50, Q51, 1 2010 47 9 Environmental and Resource Economics 65 89 http://hdl.handle.net/10.1007/s10640-010-9365-6 text/html Access to full text is restricted to subscribers. Fredrik Carlsson fredrik.carlsson@economics.gu.se Mitesh Kataria kataria@econ.mpg.de Elina Lampi elina.lampi@economics.gu.se
oai:RePEc:kap:enreec:v:57:y:2014:i:1:p:19-402020-08-08RePEc:kap:enreec
article The Effect of Decentralized Governance on Timber Extraction in European Russia “Good” governance is often promoted for economic growth, but its impact on natural resource use in developing and transitional economies is not well understood. For example, many scholars promote improved governance as a means to slow resource use, whereas others have found that better governance increases extractive resource activities. In this paper we use within-country variation in Russia to test the impact of governance on timber harvesting. Using a reduced form fixed-effects model and satellite-based estimates of forest cover we find a statistically significant and non-linear effect of governance on the area of timber harvested: for a marginal improvement in governance timber harvesting increases, but this effect decreases at high levels of governance. These results are robust to alternative specifications and when instrumenting for economic growth. Governance could impact timber harvesting in Russia through ownership risk (i.e., tenure security), through the costs of doing business (i.e., bribes), or both. Nonparametric regressions and qualitative evidence suggest that both factors are at play in Russia. This analysis provides additional evidence that improving governance may increase natural resource extraction. This has important implications for policy prescriptions that suggest “good” governance will slow resource use in developing and transitional economies. Copyright Springer Science+Business Media Dordrecht 2014 Corruption, Decentralization, Institutions, Forests, Governance, Logging, Property rights, Russia, 1 2014 57 1 Environmental and Resource Economics 19 40 http://hdl.handle.net/10.1007/s10640-013-9657-8 text/html Access to full text is restricted to subscribers. Kelly Wendland kwendland@uidaho.edu David Lewis Jennifer Alix-Garcia
oai:RePEc:kap:enreec:v:45:y:2010:i:4:p:553-5712020-08-08RePEc:kap:enreec
article Concern for Fairness and Incentives in Water Negotiations Transboundary water resources, Water negotiations, Concern for fairness, Cooperation, 4 2010 45 4 Environmental and Resource Economics 553 571 http://hdl.handle.net/10.1007/s10640-009-9328-y text/html Access to full text is restricted to subscribers. Carmen Marchiori c.marchiori@lse.ac.uk
oai:RePEc:kap:enreec:v:58:y:2014:i:4:p:627-6472020-08-08RePEc:kap:enreec
article Repeated Experimentation to Learn About a Flow-Pollutant Threshold We examine in discrete time the management of a flow pollutant that causes damage when it crosses a fixed but unknown threshold. The manager sequentially chooses a pollution level that allows learning about the threshold, thereby improving future decisions. If crossed, damage can be reversed at some cost. We analyze the conditions under which experimentation is optimal, and explore how experimentation depends on restoration costs, information about the threshold, and the discount rate. Our results suggest that the level of experimentation, defined as the difference between the optimal activity with and without learning, is non-monotonic in costs and decreasing in the discount rate. We identify two stopping boundaries for the experiment, depending on cost levels compared to the lower bound of the threshold’s interval. We show that when costs are high the stopping boundary under an infinite number of decisions is the same as when there are only two decision moments. A computational extension to more than two decisions suggests that an optimal sequence of experiments can cross the same threshold several times before experimentation ceases. These results shed light on a large class of environmental decision problems that has not been examined in the literature. Copyright Springer Science+Business Media Dordrecht 2014 Discrete time, Dynamic programming, Environmental catastrophes, Endogenous learning, Flow pollution, Reversible events, Threshold effects, Uncertainty, 4 2014 58 8 Environmental and Resource Economics 627 647 http://hdl.handle.net/10.1007/s10640-013-9713-4 text/html Access to full text is restricted to subscribers. Rolf Groeneveld rolf.groeneveld@wur.nl Michael Springborn Christopher Costello
oai:RePEc:kap:enreec:v:40:y:2008:i:2:p:251-2642020-08-08RePEc:kap:enreec
article Do Colored Photographs Affect Willingness to Pay Responses for Endangered Species Conservation? Colored photographs, Contingent valuation, Philippine eagle, Willingness to pay, 2 2008 40 6 Environmental and Resource Economics 251 264 http://hdl.handle.net/10.1007/s10640-007-9151-2 text/html Access to full text is restricted to subscribers. Rex Labao rexlabao@yahoo.com Herminia Francisco Dieldre Harder Florence Santos
oai:RePEc:kap:enreec:v:18:y:2001:i:4:p:391-4102020-08-08RePEc:kap:enreec
article Modelling the Non-market Environmental Costs and Benefits of Biodiversity Projects Using Contingent Valuation Data CV studies rarely ask willingness to accept (WTA)questions, yet there are a range of environmentalprojects where there are likely to be potential losersas well as gainers. This paper presents evidence fromsix biodiversity projects that the inclusion ofcontingent compensation payments from thoserespondents who preferred the status quo cansubstantially reduce net project benefits, even whenthe proportion of losers is relatively small. Astatistical model for estimating the mean welfaremeasure from dichotomous choice data which allows forboth positive WTP, zero WTP, and WTA is described. Asmany environmental projects are likely to create bothgainers and losers, we recommend that CV analysts giveserious consideration to the collection and analysisof WTA data otherwise they risk generating biasedestimates of project benefits. Copyright Kluwer Academic Publishers 2001 biodiversity, CV, non-market costs, willingness to accept, willingness to pay, 4 2001 18 4 Environmental and Resource Economics 391 410 http://hdl.handle.net/10.1023/A:1011169413639 text/html Access to full text is restricted to subscribers. Douglas Macmillan d.macmillan@abdn.ac.uk Elizabeth Duff David Elston
oai:RePEc:kap:enreec:v:56:y:2013:i:2:p:211-2262020-08-08RePEc:kap:enreec
article Public Good Provision and Ancillary Benefits: The Case of Climate Agreements Several studies found ancillary benefits of the provision of public goods to be of considerable size. If these additional private benefits were noticed, they would imply not only higher cooperative but also non-cooperative provision levels. However, beyond these largely undisputed important quantitative effects, there would be qualitative and strategic implications associated with ancillary benefits: public policy would no longer be a pure but an impure public good. In this paper, we investigate these implications in a setting of non-cooperative coalition formation in the context of climate change. In particular, we address the following question. Would ancillary benefits if they were taken in consideration increase participation in international climate agreements and raise the success of these treaties in welfare terms? Copyright Springer Science+Business Media B.V. 2013 Ancillary benefits, Impure public goods, Coalition formation, Game theory, Climate policy, C72, H87, Q54, 2 2013 56 10 Environmental and Resource Economics 211 226 http://hdl.handle.net/10.1007/s10640-012-9570-6 text/html Access to full text is restricted to subscribers. Michael Finus m.finus@bath.ac.uk Dirk Rübbelke dirk.ruebbelke@bc3research.org
oai:RePEc:kap:enreec:v:35:y:2006:i:4:p:259-2872020-08-08RePEc:kap:enreec
article Price Volatility and Banking in Green Certificate Markets There is concern that prices in a market for Green Certificates (GCs) primarily based on volatile wind power will fluctuate excessively, leading to corresponding volatility of electricity prices. Applying a rational expectations simulation model of competitive storage and speculation of GCs the paper shows that the introduction of banking of GCs may reduce price volatility considerably and lead to increased social surplus. Banking lowers average prices and is therefore not necessarily to the benefit of “green producers”. Proposed price bounds on GC-prices will reduce the importance of banking and even of the GC system itself. Copyright Springer Science+Business Media, Inc. 2006 commodity speculation, electricity, environment, green certificates, marketable permits, uncertainty, Q28, Q42, Q48, 4 2006 35 12 Environmental and Resource Economics 259 287 http://hdl.handle.net/10.1007/s10640-006-9015-1 text/html Access to full text is restricted to subscribers. Eirik Amundsen eirik.amundsen@econ.uib.no Fridrik Baldursson Jørgen Mortensen
oai:RePEc:kap:enreec:v:30:y:2005:i:2:p:195-2202020-08-08RePEc:kap:enreec
article Environmental Enforcement with Endogenous Ambient Monitoring We consider an inspection game between n polluting firms and an environmental enforcement agency. If the cost of monitoring ambient pollution is low enough, the optimal inspection policy consists in imposing the maximal possible fine, and mixing between observing ambient pollution and not conducting any inspection at all. However, with stringent upper limits on the fine, the agency mixes between observing ambient pollution and inspecting all firms. The observation of ambient pollution is always followed by sequentially rational firm inspections. Comparisons with Franckx (2002a, Journal of Environmental Economics and Management 43, 71–92, 2002b, Topics in Economic Analysis Policy 2(1), Article 1) show that commitment power has a very strong impact on the value of prior information. Copyright Springer 2005 ambient monitoring, commitment, environmental enforcement, 2 2005 30 02 Environmental & Resource Economics 195 220 http://hdl.handle.net/10.1007/s10640-004-1514-3 text/html Access to full text is restricted to subscribers. Laurent Franckx laurent.franckx@tmleuven.be
oai:RePEc:kap:enreec:v:55:y:2013:i:4:p:513-5242020-08-08RePEc:kap:enreec
article Are Ecosystem Services Replaceable by Technology? This paper assesses the evidence for and against the view that the processes that deliver ecosystem services are so fundamental within ecosystems that neither the services themselves nor the goods that they deliver to humans could be replaced technologically. I consider cases where the natural processes have been replaced and also the probably more common and usually less invasive cases where they have been enhanced by technological interventions. Supporting services are probably least amenable to technology, with the major exception of nutrient cycling, which has been extensively replaced by the use of chemical fertilizers. Final services offer more examples of actual or potential replacement, including the highly controversial example of geoengineering for climate regulation. Finally, there are numerous examples of replacement technologies for environmental goods, especially in the case of energy (fossil and many renewable fuels), fibres (artificial fibres) and biochemicals (industrial pharmaceuticals). The full economic costs of replacement technologies have rarely been explored, and in some cases it appears that the replacement is more expensive than the natural service. Enhancement technologies, in contrast, supplement the output of ecosystem services and are probably in most cases more benign. The doubts about true costs and the fact that many supporting and final services seem either irreplaceable or only replaceable at huge cost adds to the need to protect them. Copyright Springer Science+Business Media Dordrecht 2013 Ecosystems, Goods, Supporting services, Technology, Replacement, Enhancement, 4 2013 55 8 Environmental and Resource Economics 513 524 http://hdl.handle.net/10.1007/s10640-013-9676-5 text/html Access to full text is restricted to subscribers. Alastair Fitter ahf1@york.ac.uk
oai:RePEc:kap:enreec:v:18:y:2001:i:2:p:233-2502020-08-08RePEc:kap:enreec
article Time Preference, Stock Externalities and Strategic Reactions This paper examines the relationship between the rateof time preference and strategic reactions in dealing with climate change caused by anthropogenic greenhouse gas (GHG) emissions. Treating climate change as stock externalities, the RICE model (Nordhaus and Yang [1996]) is employed in this paper for simulation studies. The simulation results show that when regions' rate of time preference in evaluating climatechange is sufficiently low, the paths of efficient GHGemission reduction measurement and the inefficient Nash equilibrium outcome are close. The paper also provides general interpretations of such phenomena. Finally, the implications of a low rate of time preference on GHG emission reduction policies are discussed. Copyright Kluwer Academic Publishers 2001 stock externality, climate change, 2 2001 18 2 Environmental and Resource Economics 233 250 http://hdl.handle.net/10.1023/A:1011160620922 text/html Access to full text is restricted to subscribers. Zili Yang zxy7@psu.edu
oai:RePEc:kap:enreec:v:52:y:2012:i:2:p:249-2642020-08-08RePEc:kap:enreec
article When are Forest Visits Valued the Most? An Analysis of the Seasonal Demand for Forest Recreation in Poland Exponential distribution, Forest visitation, Poisson distribution, Seasonal demand, Travel cost method, 2 2012 52 6 Environmental and Resource Economics 249 264 http://hdl.handle.net/10.1007/s10640-011-9527-1 text/html Access to full text is restricted to subscribers. Anna Bartczak bartczak@wne.uw.edu.pl Jeffrey Englin Arwin Pang
oai:RePEc:kap:enreec:v:18:y:2001:i:1:p:61-852020-08-08RePEc:kap:enreec
article Technical Change and Measuring Pollution Abatement Costs: An Activity Analysis Framework The cornerstones of studies that estimate the effectof environmental regulations on an economy areestimates of the pollution abatement costs incurred bythe manufacturing and electric utility sectors.However, there are concerns regarding the accuracy ofthe surveys used to generate these cost estimates.This paper demonstrates that technical change tends toresult in an increasing share of pollution abatementcosts being impossible to measure. This finding hasimportant implications for estimating the productivityeffects of environmental regulations, developingregulatory budgets, and data collection effortsrelated to environmental accounting. Copyright Kluwer Academic Publishers 2001 joint production, pollution abatement casts, technical change, 1 2001 18 1 Environmental and Resource Economics 61 85 http://hdl.handle.net/10.1023/A:1011160322894 text/html Access to full text is restricted to subscribers. Carl Pasurka pasurka.carl@epa.gov
oai:RePEc:kap:enreec:v:30:y:2005:i:1:p:49-722020-08-08RePEc:kap:enreec
article Interviewer Effects on the Valuation of Goods with Ethical and Environmental Attributes This paper investigates the impact of interviewer effects on willingness to pay (WTP) estimates. Face-to-face surveys were conducted with two interviewers. Both interviewers used a transcript and conducted the survey at the same location and at the same time. We found that responses to the WTP questions differ across eco-labeled products and by interviewer. This interviewer effect is particularly relevant when we analyze the impact on WTP estimates for eco-labeled products grown in countries associated with the origin of one of the interviewers. Copyright Springer 2005 contingent valuation, ecolabels, interviewer effect, 1 2005 30 1 Environmental & Resource Economics 49 72 http://hdl.handle.net/10.1007/s10640-004-1149-4 text/html Access to full text is restricted to subscribers. Maria Loureiro maria.loureiro@usc.es Justus Lotade
oai:RePEc:kap:enreec:v:21:y:2002:i:2:p:107-1332020-08-08RePEc:kap:enreec
article Regulating an Externality-Generating Utility Environmental Taxes Under Limited Information Global warming is currently an important item on most nationalenvironmental agendas. In many countries, coal-fired electricity generatingstations represent an important source of greenhouse gases. We examinehow regulations to curb emissions affect public utility pricing regulationwhen regulators act non-cooperatively. We show that, when there is limitedinformation on fixed abatement costs, an environmental regulator prefersan emission tax over an output tax or a lump sum environmental tax. Thepublic utility regulator prefers the lump sum tax regime. Copyright Kluwer Academic Publishers 2002 adverse selection, electricity pricing, environmental taxes, 2 2002 21 2 Environmental and Resource Economics 107 133 http://hdl.handle.net/10.1023/A:1014521221896 text/html Access to full text is restricted to subscribers. Henry van Egteren henry.van.egteren@ualberta.ca
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article Tom Tietenberg and Henk Folmer (Eds), 2000, The International Yearbook of Environmental and Resource Economics 2000/2001: A Survey of Current Issues 4 2002 23 12 Environmental and Resource Economics 467 472 http://hdl.handle.net/10.1023/A:1021396012139 text/html Access to full text is restricted to subscribers. Dennis Collentine dennis.collentine@ekon.slu.se
oai:RePEc:kap:enreec:v:48:y:2011:i:2:p:303-3192020-08-08RePEc:kap:enreec
article A Bio-Economic Model of Community Incentives for Wildlife Management Under CAMPFIRE Bio-economics, Benefit sharing, CAMPFIRE, Conservation, Elephants, Hunting quotas, Poaching, Renewable resources, Wildlife, H1, Q20, 2 2011 48 2 Environmental and Resource Economics 303 319 http://hdl.handle.net/10.1007/s10640-010-9409-y text/html Access to full text is restricted to subscribers. Carolyn Fischer fischer@rff.org Edwin Muchapondwa Edwin.muchapondwa@uct.ac.za Thomas Sterner Thomas.Sterner@economics.gu.se
oai:RePEc:kap:enreec:v:9:y:1997:i:2:p:171-1982020-08-08RePEc:kap:enreec
article CO 2 -stabilization may be a ‘no-regrets’ policy Restricting CO 2 emissions requires changing today's consumption pattern away from energy and emission intensive commodities towards cleaner goods. The cost of stabilizing CO 2 emissions at the 1990 level by the year 2000, say, as compared to a business-as-usual trend, is estimated by several researchers to be on the order of 1% of GNP. We will argue that the cost may be overestimated because of a too simple model describing the working of the economic system and the evaluation of welfare. We demonstrate that by expanding a model to include the actual tax system and negative externalities, the cost to present generations from restricting emissions by a CO 2 tax may be negative. That is, some reduction may actually correspond to a ‘no-regrets’ policy. The reasons are inefficiencies in today's tax system and non-optimal handling of negative externalities. Our analysis suggests that a CO 2 tax and reduced emissions will lessen such inefficiencies. Copyright Kluwer Academic Publishers 1997 CO 2 regulation, green tax reform, negative externalities, general equilibrium analysis, 2 1997 9 3 Environmental & Resource Economics 171 198 http://hdl.handle.net/10.1007/BF02441377 text/html Access to full text is restricted to subscribers. Lars Håkonsen Lars Mathiesen
oai:RePEc:kap:enreec:v:14:y:1999:i:1:p:151-1632020-08-08RePEc:kap:enreec
article On the Asymmetry of the Vagueness Band in Willingness to Pay Answers The NOAA panel for Contingent Valuation opened up the question of the possibility of using trichotomous choice discrete formats in CV studies. In this paper we show how the trichotomous choice format can be used for testing the successfulness of the project definition in the questionnaire. We shall define the vagueness band around the ‘true’ outcome of the project to be valued and we allow it to be asymmetric. It is shown how this asymmetry can be modelled and estimated. We also show how these new models are generalisations of ordinary ordered probit/logit models. Copyright Kluwer Academic Publishers 1999 contingent valuation, trichotomous choice, supply vagueness, asymmetry, 1 1999 14 7 Environmental and Resource Economics 151 163 http://hdl.handle.net/10.1023/A:1008310706090 text/html Access to full text is restricted to subscribers. Rauli Svento
oai:RePEc:kap:enreec:v:62:y:2015:i:2:p:329-3572020-08-08RePEc:kap:enreec
article A Third Wave in the Economics of Climate Change Modelling the economics of climate change is daunting. Many existing methodologies from social and physical sciences need to be deployed, and new modelling techniques and ideas still need to be developed. Existing bread-and-butter micro- and macroeconomic tools, such as the expected utility framework, market equilibrium concepts and representative agent assumptions, are far from adequate. Four key issues—along with several others—remain inadequately addressed by economic models of climate change, namely: (1) uncertainty, (2) aggregation, heterogeneity and distributional implications (3) technological change, and most of all, (4) realistic damage functions for the economic impact of the physical consequences of climate change. This paper assesses the main shortcomings of two generations of climate-energy-economic models and proposes that a new wave of models need to be developed to tackle these four challenges. This paper then examines two potential candidate approaches—dynamic stochastic general equilibrium (DSGE) models and agent-based models (ABM). The successful use of agent-based models in other areas, such as in modelling the financial system, housing markets and technological progress suggests its potential applicability to better modelling the economics of climate change. Copyright Springer Science+Business Media Dordrecht 2015 Climate change, Integrated assessment models, Agent based models, DSGE models, Uncertainty, Technological innovation, Heterogeneity, Damage function, 2 2015 62 10 Environmental and Resource Economics 329 357 http://hdl.handle.net/10.1007/s10640-015-9965-2 text/html Access to full text is restricted to subscribers. J. Farmer Cameron Hepburn Cameron.hepburn@new.ox.ac.uk Penny Mealy Alexander Teytelboym
oai:RePEc:kap:enreec:v:12:y:1998:i:2:p:225-2402020-08-08RePEc:kap:enreec
article A Multi-Objective and Multi-Design Evaluation Procedure for Environmental Protection Forestry A unique and important application of a comprehensive and practical multi-objective evaluation framework is presented which goes far beyond traditional cost-benefit analysis (CBA). It is characterized by transparency which is not always the case for methods beyond CBA. The application is geared to the evaluation of environmental protection forestry with several alternative designs. The framework suggested consists of five key steps integrating orthodox cost-benefit analysis and the analytical hierarchy process developed by Saaty (1980). It is shown to be a flexible framework which can coherently function with a mixture of both monetary and physical units of measurement. The framework is applied to a consideration of alternative designs for the Three Norths Shelter Belt (TNSB) in China. Copyright Kluwer Academic Publishers 1998 agroforestry system, China, environmental protection, project evaluation, 2 1998 12 9 Environmental and Resource Economics 225 240 http://hdl.handle.net/10.1023/A:1016036114492 text/html Access to full text is restricted to subscribers. Aying Liu Alan Collins Shujie Yao
oai:RePEc:kap:enreec:v:28:y:2004:i:4:p:533-5492020-08-08RePEc:kap:enreec
article Trading Taxes vs. Paying Taxes to Value and Finance Public Environmental Goods The potential sensitivity of environmentalresource valuation to payment vehicles is ofinterest to researchers and decision-makersinvolved in estimating and applying thesenumbers. A conceptual model is developed whichprovides insight into how the different paymentvehicles of a special tax and a taxreallocation affects the willingness to pay(WTP) for environmental goods. Hypothesistesting using contingent valuation datasuggests WTP with a tax reallocation is higherthan WTP with a special tax for ground waterquality protection in Georgia and Maine, USA.Technical measurement and welfare analysisimplications and limitations of valuing andfinancing public environmental goods using taxrealloactions are discussed. Copyright Kluwer Academic Publishers 2004 contingent valuation, environmental goods, special tax, tax reallocation, water quality, 4 2004 28 8 Environmental and Resource Economics 533 549 http://hdl.handle.net/10.1023/B:EARE.0000036779.58923.02 text/html Access to full text is restricted to subscribers. John Bergstrom jbergstrom@agecon.uga.edu Kevin Boyle Mitsuyasu Yabe
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article Valuing Mangrove-Fishery Linkages – A Case Study of Campeche, Mexico This paper explores the value of mangrove systems as a breeding and nursery habitat for off-shore fisheries, focusing on mangrove-shrimp production linkages in Campeche State, Mexico. We develop an open access fishery model to account explicitly for the effect of mangrove area on carrying capacity and thus production. From the long-run equilibrium conditions of the model we are able to establish the key parameters determining the comparative static effects of a change in mangrove area on this equilibrium. We then estimate empirically the effects of changes in mangrove area in the Laguna de Terminos on the production and value of shrimp harvests in Campeche over 1980–90. Our findings suggest that mangroves are an important and essential input into the Campeche shrimp fishery, but that the low levels of deforestation between 1980 and 1990 mean that the resulting losses to the shrimp fishery are still comparatively small. Over-exploitation of the fishery due to open access conditions remains the more pervasive threat, and without better management any long-run benefits of protecting mangrove habitat are likely to be dissipated. Copyright Kluwer Academic Publishers 1998 bioeconomic, Campeche, deforestation, ecological, economic, fishery, habitat, harvest, Laguna de Terminos, mangrove, Mexico, open access, shrimp, 2 1998 12 9 Environmental and Resource Economics 151 166 http://hdl.handle.net/10.1023/A:1008248003520 text/html Access to full text is restricted to subscribers. Edward Barbier Ivar Strand
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article Green Tax Reform in an Oligopolistic Industry OECD countries reduce or eliminate certain taxes when they introduce new environmental taxes. The purpose of this paper is to analyze the incidence of such green tax reform in an oligopolistic industry. The paper shows that a rise in taxes could result in the expansion of the aggregate pollution in the presence of a large technology gap. The paper further shows that the government loses tax revenue as a result of the green tax reform if it continues to apply the same environmental standard. This implies that the government needs to raise environmental standards to keep the existing level of public spending after a green tax reform. Copyright Springer 2005 environmental standard, green tax reform, oligopolistic conjecture, tax revenue, H2, D43, Q2, 3 2005 31 07 Environmental & Resource Economics 253 274 http://hdl.handle.net/10.1007/s10640-004-8249-z text/html Access to full text is restricted to subscribers. Hajime Sugeta sugeta@ipcku.kansai-u.ac.jp Shigeru Matsumoto
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article A Political Economy in an Ecological Web Behavior matters more to environmental policy than most people think. This paper illustrates why this point needs repeating in four ongoing policy debates in the United States – Children's health risk, ozone/particulate matter (PM), climate change, and endangered species. Copyright Kluwer Academic Publishers 1998 endangered species, environmental policy, pollution, risk, 3 1998 11 4 Environmental and Resource Economics 557 570 http://hdl.handle.net/10.1023/A:1008280325604 text/html Access to full text is restricted to subscribers. Jason Shogren jramses@uwyo.edu
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article Administrative Costs and Instrument Choice for Stochastic Non-point Source Pollutants This paper extends the empiricalanalysis of non-point source pollution to thecase where the pollutant is stochastic andalternative regulatory instruments havedifferent administrative costs. It also appliesa method of stochastic programming whereemissions are log-normally distributed. Forthe Kennet catchment in South West England werank a range of policies in terms of abatementcosts alone, and total costs (abatement andadministrative costs). On the basis ofabatement costs alone, a uniform emission taxis the cost minimising policy, but on the basisof total cost a nitrogen input tax is theleast-cost policy. Furthermore, the policyranking, based on total costs, changes as thereliability standard increases. Copyright Kluwer Academic Publishers 2004 instrument choice, nitrate pollution, non-point source pollutants, stochastic programming, 2 2004 27 2 Environmental and Resource Economics 109 133 http://hdl.handle.net/10.1023/B:EARE.0000017275.44350.e5 text/html Access to full text is restricted to subscribers. Athanasios Kampas Ben White
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article Demand for Piped and Non-piped Water Supply Services: Evidence from Southwest Sri Lanka Demand estimation, Household water use, Piped and non-piped water services, Price elasticity, Pricing policy, Sri Lanka, 4 2009 42 4 Environmental and Resource Economics 535 549 http://hdl.handle.net/10.1007/s10640-008-9222-z text/html Access to full text is restricted to subscribers. Céline Nauges cnauges@toulouse.inra.fr Caroline Berg Cvandenberg@worldbank.org
oai:RePEc:kap:enreec:v:47:y:2010:i:2:p:299-3042020-08-08RePEc:kap:enreec
article A Note on Imitation-Based Competition in Common-Pool Resources Common resources, Imitation behavior, Evolutionary stable strategy, Evolutionary games, C73, D41, Q20, 2 2010 47 10 Environmental and Resource Economics 299 304 http://hdl.handle.net/10.1007/s10640-010-9372-7 text/html Access to full text is restricted to subscribers. Jean-Philippe Atzenhoffer atzenhoffer@cournot.u-strasbg.fr
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article CITES and the Zoonotic Disease Content in International Wildlife Trade Abstract International trade in wildlife is one contributing factor to zoonotic disease risk. Using descriptive statistics, this paper shows that in the last decades, the volume and pattern of internationally traded wildlife has changed considerably and, with it, the zoonotic pathogens that are traded. In an econometric analysis, we give evidence that an international environmental trade agreement could be used to limit the spread of zoonotic pathogens and disease. More specifically, combining zoonotic disease data with wildlife trade data from the Convention on International Trade in Endangered Species of Wildlife and Fauna (CITES), we show that making trade requirements more stringent leads to a decrease in the number of animals traded and, incidentally, also the number of zoonotic diseases that are traded. Our results contribute to the discussion of policy measures that manage the spread of zoonotic diseases. Zoonotic diseases, International wildlife trade, CITES, Gravity model 4 2020 76 8 27 Environmental and Resource Economics 1001 1017 F18 F53 Q27 Q54 http://link.springer.com/10.1007/s10640-020-00456-7 text/html Abstract Stefan Borsky stefan.borsky@uni-graz.at University of Graz Hannah Hennighausen University of Graz Andrea Leiter University of Innsbruck Keith Williges University of Graz
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article Air Pollution Exposure and Covid-19 in Dutch Municipalities Abstract In light of the existing preliminary evidence of a link between Covid-19 and poor air quality, which is largely based upon correlations, we estimate the relationship between long term air pollution exposure and Covid-19 in 355 municipalities in the Netherlands. Using detailed data we find compelling evidence of a positive relationship between air pollution, and particularly $$PM_{2.5}$$ P M 2.5 concentrations, and Covid-19 cases, hospital admissions and deaths. This relationship persists even after controlling for a wide range of explanatory variables. Our results indicate that, other things being equal, a municipality with 1 μg/m3 more $$PM_{2.5}$$ P M 2.5 concentrations will have 9.4 more Covid-19 cases, 3.0 more hospital admissions, and 2.3 more deaths. This relationship between Covid-19 and air pollution withstands a number of sensitivity and robustness exercises including instrumenting pollution to mitigate potential endogeneity in the measurement of pollution and modelling spatial spillovers using spatial econometric techniques. Covid-19, Air pollution, Netherlands, Spatial spillovers 4 2020 76 8 5 Environmental and Resource Economics 581 610 I21 I23 Q53 http://link.springer.com/10.1007/s10640-020-00491-4 text/html Abstract Matthew A. Cole m.a.cole@bham.ac.uk University of Birmingham Ceren Ozgen University of Birmingham IZA Eric Strobl University of Birmingham University of Bern
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article Public Awareness of Nature and the Environment During the COVID-19 Crisis Abstract As our behavioral patterns change due to the COVID-19 crisis, our impact on nature and the environment changes too. Pollution levels are showing significant reductions. People are more aware of the importance of access to local green and blue spaces. By analyzing online search behavior in twenty European countries, we investigate how public awareness of nature and the environment has evolved during the COVID-19 crisis. We find that the crisis goes hand in hand with a positive shift in public awareness of nature-related topics, but that awareness of environmental topics remains unaffected. While the decreasing pollution levels and media attention may reduce the overall sense of urgency to tackle pollution problems, the increased experience with local natural resources may strengthen public support for a recovery program that puts the transition towards a more sustainable economic system centrally. Public awareness, Google Trends, COVID-19, Nature, Environment 4 2020 76 8 35 Environmental and Resource Economics 1149 1159 http://link.springer.com/10.1007/s10640-020-00445-w text/html Abstract Sandra Rousseau sandra.rousseau@kuleuven.be KU Leuven Nick Deschacht KU Leuven
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article Effects of Physical Distancing to Control COVID-19 on Public Health, the Economy, and the Environment Abstract Physical distancing measures are important tools to control disease spread, especially in the absence of treatments and vaccines. While distancing measures can safeguard public health, they also can profoundly impact the economy and may have important indirect effects on the environment. The extent to which physical distancing measures should be applied therefore depends on the trade-offs between their health benefits and their economic costs. We develop an epidemiological-economic model to examine the optimal duration and intensity of physical distancing measures aimed to control the spread of COVID-19. In an application to the United States, our model considers the trade-off between the lives saved by physical distancing—both directly from stemming the spread of the virus and indirectly from reductions in air pollution during the period of physical distancing—and the short- and long-run economic costs that ensue from such measures. We examine the effect of air pollution co-benefits on the optimal physical distancing policy and conduct sensitivity analyses to gauge the influence of several key parameters and uncertain model assumptions. Using recent estimates of the association between airborne particulate matter and the virulence of COVID-19, we find that accounting for air pollution co-benefits can significantly increase the intensity and duration of the optimal physical distancing policy. To conclude, we broaden our discussion to consider the possibility of durable changes in peoples’ behavior that could alter local markets, the global economy, and our relationship to nature for years to come. COVID-19, Air pollution, Co-benefits, Physical distancing, Social distancing, Optimal control 4 2020 76 8 12 Environmental and Resource Economics 705 729 http://link.springer.com/10.1007/s10640-020-00440-1 text/html Abstract Stephen C. Newbold snewbold@uwyo.edu University of Wyoming David Finnoff University of Wyoming Linda Thunström University of Wyoming Madison Ashworth University of Wyoming Jason F. Shogren University of Wyoming
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article Effects of the COVID-19 on Air Quality: Human Mobility, Spillover Effects, and City Connections Abstract We quantify the causal effects of the coronavirus disease 2019 (COVID-19) on air quality in the context of China. Using the lockdowns in different cities as exogenous shocks, our difference-in-differences estimations show that lockdown policies significantly reduced air pollution by 12% on average. Based on the first lockdown city, Wuhan, we present three underlying mechanisms driving our findings: anticipatory effects, spillover effects, and a city’s level of connection with Wuhan. Our findings are more pronounced in cities whose population was more willing to self-isolate or more susceptible to anxiety, or whose government faces less pressure to stimulate economic growth. Overall, this study contributes to the literature by evaluating the unintended consequences of the COVID-19 outbreak for air quality, and provides timely policy implications for policymakers. COVID-19, Air quality, Human mobility, Spillover, Connections 4 2020 76 8 7 Environmental and Resource Economics 635 653 Q53 Q56 F64 O13 http://link.springer.com/10.1007/s10640-020-00492-3 text/html Abstract Shasha Liu sarahliu@jnu.edu.cn Jinan University Gaowen Kong konggaowen@gmail.com Guangzhou University Dongmin Kong kongdm@hust.edu.cn Zhongnan University of Economics and Law
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article The Economy, Climate Change and Infectious Diseases: Links and Policy Implications Abstract This short paper provides a modeling framework for unifying the economy, climate change and the outbreak of infectious diseases such as the recent COVID-19 pandemic. We stress that continuous growth of consumption activities, capital accumulation and climate change could increase the potential of the epidemic, its contact number or the probability of its arrival. This framework of analysis allows us to think of infectious disease policies in two stages. In the short run, containment policies like social distancing could help to stop the epidemic. In the medium and the long run, economic policies could help to reduce the potential of the epidemic or the probability of its emergence. SIR model, Epidemic, Climate change, Containment policy, Regime shift 4 2020 76 8 17 Environmental and Resource Economics 811 824 http://link.springer.com/10.1007/s10640-020-00442-z text/html Abstract William Brock University of Wisconsin University of Missouri Anastasios Xepapadeas xepapad@aueb.gr University of Economics and Business University of Bologna
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article COVID-19 and EU Climate Targets: Can We Now Go Further? Abstract This paper examines the implications of the COVID-19 crisis on the 2030 EU CO2 emissions target, considering a range of economic growth scenarios. With lower economic activity resulting from the COVID-19 crisis, we find that existing climate policy measures could overshoot the current 40% EU target in 2030. If policymakers consequently relax climate policy measures to maintain the 2030 target, the opportunity will be missed to align EU climate policy with longer-term Paris emissions mitigation goals. Our analysis highlights that although existing climate policy measures will likely reduce emissions more than 40% by 2030 in the wake of the pandemic, they will not be enough to meet the Paris agreement. More stringent measures, such as those proposed under the Green New Deal, will still be needed and may be less costly than previously estimated. Climate change policy, Greenhouse gas emissions, Economic recovery, COVID-19 economic effects, Energy demand 4 2020 76 8 15 Environmental and Resource Economics 779 787 Q5 Q54 Q58 E6 Q43 http://link.springer.com/10.1007/s10640-020-00476-3 text/html Abstract Tensay Hadush Meles tensay.meles@ucd.ie University College Dublin University College Dublin Lisa Ryan lisa.ryan@ucd.ie University College Dublin University College Dublin Joe Wheatley joe.wheatley@ucd.ie University College Dublin University College Dublin
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article Five Lessons from COVID-19 for Advancing Climate Change Mitigation Abstract The nexus of COVID-19 and climate change has so far brought attention to short-term greenhouse gas (GHG) emissions reductions, public health responses, and clean recovery stimulus packages. We take a more holistic approach, making five broad comparisons between the crises with five associated lessons for climate change mitigation policy. First, delay is costly. Second, policy design must overcome biases to human judgment. Third, inequality can be exacerbated without timely action. Fourth, global problems require multiple forms of international cooperation. Fifth, transparency of normative positions is needed to navigate value judgments at the science-policy interface. Learning from policy challenges during the COVID-19 crisis could enhance efforts to reduce GHG emissions and prepare humanity for future crises. COVID-19, Climate change, Climate policy, Public support, Psychological bias, Inequality, Role of scientists, Global cooperation 4 2020 76 8 14 Environmental and Resource Economics 751 778 http://link.springer.com/10.1007/s10640-020-00453-w text/html Abstract David Klenert david.klenert@ec.europa.eu European Commission Franziska Funke University of Oxford University of Oxford Linus Mattauch University of Oxford University of Oxford Brian O’Callaghan University of Oxford
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article Labor Market Impacts of Deforestation Caused by Invasive Species Spread Abstract Loss of tree cover caused by forest-attacking invasive species negatively affects environmental quality by impacting air quality, temperature, and recreational opportunities. Prior work has shown causal associations between these environmental quality metrics and labor market outcomes, however, never before due to invasive species spread. To address this gap, this paper explores the labor market effects of invasive species-induced deforestation using quasi-random detections of the invasive emerald ash borer (EAB) as a natural experiment. Using multiple sources of labor market data, it is shown that wage earnings are lower by an average of 1% in the years after EAB detection. Strongest impacts are observed in the manufacturing (4.3% decline) and accommodation and food service (4.2% decline) industries. Additional impacts are observed on the number of Social Security claimants and the number of people employed at firms in EAB counties. Lost labor market earnings due to EAB total $11.8 billion, or, $1.2 billion/year over the 10-year period investigated. Many robustness and falsification tests are performed. Invasive species, Deforestation, Labor market, Wages, Employment effects, EAB 1 2020 77 9 7 Environmental and Resource Economics 159 190 J21 J26 Q23 Q51 Q52 Q53 Q57 http://link.springer.com/10.1007/s10640-020-00469-2 text/html Abstract Benjamin A. Jones bajones@unm.edu University of New Mexico, 1 University of New Mexico
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article Emission Regulation of Markets with Sluggish Supply Structures Abstract I examine regulation in the presence of convex investment costs and technology specific capacity stocks. Announcement of future emission taxes reduces current emissions unless fossil fuels are scarce, in which case the effect is ambiguous. Substantial future emission reductions require action today, because it takes time to build up clean production capacity and phase out dirty capacity. The Pigou tax must be coupled with sector specific investment taxes or subsidies to induce the socially optimal trajectory if the private discount rate differs from the social discount rate. If such investment taxes or subsidies are unavailable, a (time-inconsistent) second-best alternative may be to tax emissions above the Pigouvian level during the transition phase. The theory is complemented with a stylized numerical model of the US electricity market. Adjustment costs, Investment, Pollution, Regulation 1 2020 77 9 1 Environmental and Resource Economics 1 33 H21 H23 Q35 Q41 Q54 http://link.springer.com/10.1007/s10640-020-00433-0 text/html Abstract Halvor B. Storrøsten hbs@ssb.no Statistics Norway
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article Greening the Post-pandemic Recovery in the G20 Abstract Rebuilding G20 economies after the COVID-19 pandemic requires rethinking what type of economy we need and want in the future. Simply reviving the existing ‘brown’ economy will exacerbate irreversible climate change and other environmental risks. For G20 economies, investing in a workable and affordable green transition is essential. A good place to start is learning what worked and what did not from previous efforts to green the economic recovery during the 2008–2009 Great Recession, examining the cases of the United States and South Korea. Policies for a sustained economic recovery amount to much more than just short-term fiscal stimulus. Transitioning from fossil fuels to a sustainable low-carbon economy will require long-term commitments (5–10 years) of public spending and pricing reforms. The priorities for public spending include support for private sector green innovation and infrastructure, development of smart grids, transport systems, charging station networks, and sustainable cities. Pricing carbon and pollution, and removing fossil-fuel subsidies, can accelerate the transition, raise revenues for the necessary public investments, and lower the overall cost of the green transition. Carbon pricing, Clean energy, COVID-19, G20 economies, Green economy, Green New Deal 4 2020 76 8 11 Environmental and Resource Economics 685 703 http://link.springer.com/10.1007/s10640-020-00437-w text/html Abstract Edward B. Barbier Edward.barbier@colostate.edu Colorado State University
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article Buy Coal or Kick-Start Green Innovation? Energy Policies in an Open Economy Abstract This paper analyses two unilateral policies available to countries that want to rapidly curb carbon emissions in the global economy, but do not own any fossil fuel resources. If fossil fuel owners do not cooperate in $$\hbox {CO}_2$$ CO 2 emission reduction efforts, the only strategy to reduce their fossil fuels’ use is to exploit the interconnectedness of production given by international trade. We compare a Pigouvian approach, namely a subsidy for renewable energy prices, and a Coasian supply-side strategy, buying extractive rights over fossil fuel deposits abroad. Using a dynamic North–South trade model with endogenous innovation, we show how these policies, designed to prevent an environmental disaster, have different cost and welfare profiles. If fossil fuel deposits can be purchased at their market price, the supply-side policy achieves the highest welfare. If instead the fossil fuel owners require a full compensation for their income loss, subsidies for renewable energy inputs can result in higher welfare, but only if the resource-rich region has less advanced technologies for green energy production than the countries implementing the policy. Energy, Trade, Fossil fuels, Directed technical change, Supply-side policies 1 2020 77 9 4 Environmental and Resource Economics 95 126 F18 O32 O38 http://link.springer.com/10.1007/s10640-020-00455-8 text/html Abstract Chiara Ravetti chiara.ravetti@polito.it Politecnico di Torino Tania Theoduloz taniatheoduloz@uca.edu.ar Universidad Catolica de Argentina Giulia Valacchi giulia.valacchi@graduateinstitute.ch Maison de la Paix
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article Determining the Generalized Discount Rate for Risky Projects Abstract It is widely recognized that the evaluation of risky projects critically depends on how the riskiness of future benefits is treated. Standard discounting theories are based on the assumption that risks that are uncorrelated with aggregate risk are diversified, so that projects’ idiosyncratic risk is not priced. However, this may not be true for long-term risky projects, such as those with persistent idiosyncratic shocks. In this study, we investigate the impact of both aggregate risk and nondiversifiable idiosyncratic risk on the discount rate for risky projects. We extend the generalized discount rate to the case of persistent shocks. A particular advantage of the generalized discount rate is that it can be applied in the setting of incomplete markets. We show that nondiversifiable idiosyncratic risk reduces the discount rate, and increases the present value of projects’ future uncertain benefits. We further apply our findings to the evaluation of emissions reduction projects. Generalized discount rate, Term structure, Idiosyncratic risk, Cost–benefit analysis, Emissions reduction projects 1 2020 77 9 6 Environmental and Resource Economics 143 158 H43 D61 G12 http://link.springer.com/10.1007/s10640-020-00458-5 text/html Abstract Lanlan Luo Business School of Hunan University Shou Chen chenshou@hnu.edu.cn Business School of Hunan University Ziran Zou zouziran@hnu.edu.cn Business School of Hunan University
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article COVID-19, Systemic Crisis, and Possible Implications for the Wild Meat Trade in Sub-Saharan Africa Abstract Wild animals play an integral and complex role in the economies and ecologies of many countries across the globe, including those of West and Central Africa, the focus of this policy perspective. The trade in wild meat, and its role in diets, have been brought into focus as a consequence of discussions over the origins of COVID-19. As a result, there have been calls for the closure of China’s “wet markets”; greater scrutiny of the wildlife trade in general; and a spotlight has been placed on the potential risks posed by growing human populations and shrinking natural habitats for animal to human transmission of zoonotic diseases. However, to date there has been little attention given to what the consequences of the COVID-19 economic shock may be for the wildlife trade; the people who rely on it for their livelihoods; and the wildlife that is exploited. In this policy perspective, we argue that the links between the COVID-19 pandemic, rural livelihoods and wildlife are likely to be more complex, more nuanced, and more far-reaching, than is represented in the literature to date. We develop a causal model that tracks the likely implications for the wild meat trade of the systemic crisis triggered by COVID-19. We focus on the resulting economic shockwave, as manifested in the collapse in global demand for commodities such as oil, and international tourism services, and what this may mean for local African economies and livelihoods. We trace the shockwave through to the consequences for the use of, and demand for, wild meats as households respond to these changes. We suggest that understanding and predicting the complex dynamics of wild meat use requires increased collaboration between environmental and resource economics and the ecological and conservation sciences. Wild meat, Bushmeat, COVID-19, Policy, Sub-Saharan Africa, Systemic crisis 4 2020 76 8 29 Environmental and Resource Economics 1045 1066 http://link.springer.com/10.1007/s10640-020-00474-5 text/html Abstract James McNamara Conservation Research Consultants Smithsonian Conservation Biology Institute Elizabeth J. Z. Robinson e.j.robinson@reading.ac.uk University of Reading Katharine Abernethy University of Stirling CENAREST Donald Midoko Iponga CENAREST Hannah N. K. Sackey University of Ghana Juliet H. Wright Imperial College London Zoological Society of London EJ Milner-Gulland University of Oxford
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article Green Stimulus in a Post-pandemic Recovery: the Role of Skills for a Resilient Recovery Abstract As nations struggle to restart their economy after COVID-19 lockdowns, calls to include green investments in a pandemic-related stimulus are growing. Yet little research provides evidence of the effectiveness of a green stimulus. We begin by summarizing recent research on the effectiveness of the green portion of the 2009 American Recovery and Reinvestment Act on employment growth. Green investments are most effective in communities whose workers have the appropriate “green” skills. We then provide new evidence on the skills requirements of both green and brown occupations, as well as from occupations at risk of job losses due to COVID-19, to illustrate which workers are most likely to benefit from a pandemic-related green stimulus. We find similarities between some energy sector workers and green jobs, but a poor match between green jobs and occupations at risk due to COVID-19. Finally, we provide suggestive evidence on the potential for job training programs to help ease the transition to a green economy. Green subsides, Green stimulus, American Recovery and Reinvestment Act, Heterogeneous effect, Distributional impacts 4 2020 76 8 22 Environmental and Resource Economics 901 911 E24 E62 H54 H72 Q58 http://link.springer.com/10.1007/s10640-020-00464-7 text/html Abstract Ziqiao Chen Syracuse University Giovanni Marin University of Urbino Carlo Bo SEEDS David Popp dcpopp@maxwell.syr.edu Syracuse University NBER Francesco Vona OFCE Sciences-Po SKEMA Business School, Université Côte d’Azur CMCC, Ca’ Foscari
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article Charting a “Green Path” for Recovery from COVID-19 Abstract Should the economic recovery from the 2019 novel coronavirus disease (COVID-19) be green? The current crisis is so severe that we should not take the answer for granted. It requires serious thought and we start by reviewing some arguments for and against a green approach. A crucial element is of course to see how different industries fare in the current crisis. Our empirical contribution is to examine daily stock returns for firms from the STOXX Europe 600 index. We find that firms with higher carbon intensities experienced significantly large decreases in stock values particularly those within the crude petroleum extraction, air transport and coke and refined petroleum industries. Our tentative conclusion is that efforts to revitalize the economy should avoid subsidizing stranded assets and instead target the industries of the future. However, identifying these will not necessarily be easy. We find, for example, that having an official ESG “climate change policy” has no effect on firm performance during the pandemic. We suggest possible ways of designing a new form of more informative index. Carbon emissions, Climate change, Climate policy, COVID-19, Green recovery, Stock returns 4 2020 76 8 18 Environmental and Resource Economics 825 853 G14 Q40 Q5 http://link.springer.com/10.1007/s10640-020-00479-0 text/html Abstract Samson Mukanjari samson.mukanjari@economics.gu.se University of Gothenburg University of Johannesburg Thomas Sterner thomas.sterner@economics.gu.se University of Gothenburg
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article On the Determinants of Denouncing Illegal Fishing: A Field Study in Artisanal Fishing Communities Abstract Many artisanal fishing communities struggle with overfishing. One potential channel to mitigate overfishing is through self-monitoring and denouncing of illegal fishing practices. In this paper, we investigate the determinants of fishermen’s willingness to report the catching of illegally small fish at a lake in Brazil. By using laboratory experiments and surveys, we provide novel evidence that impatience and pro-sociality play key roles. Fishermen who are more impatient in a laboratory inter-temporal choice experiment show a higher propensity to report misbehavior from other fishermen. This finding suggests that impatience is a driver for the punishment of resource exploitation. Moreover, we find that fishermen who are more pro-social in a laboratory public goods experiment are also more likely to report overfishing, suggesting that both time and social preferences are related to the reporting of resource overexploitation. Time preferences, Social preferences, Experiments, Resource exploitation 1 2020 77 9 9 Environmental and Resource Economics 217 228 C93 O33 http://link.springer.com/10.1007/s10640-020-00471-8 text/html Abstract Carina Cavalcanti c.cavalcanti@griffith.edu.au Griffith University
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article The Value of Greenspace Under Pandemic Lockdown Abstract The COVID-19 outbreak resulted in unprecedented restrictions on citizen’s freedom of movement as governments moved to institute lockdowns designed to reduce the spread of the virus. While most out-of-home leisure activities were prohibited, in England the lockdown rules allowed for restricted use of outdoor greenspace for the purposes of exercise and recreation. In this paper, we use data recorded by Google from location-enabled mobile devices coupled with a detailed recreation demand model to explore the welfare impacts of those constraints on leisure activities. Our analyses reveals evidence of large-scale substitution of leisure time towards recreation in available greenspaces. Indeed, despite the restrictions the economic value of greenspace to the citizens of England fell by only £150 million over lockdown. Examining the outcomes of counterfactual policies we find that the imposition of stricter lockdown rules would have reduced welfare from greenspace by £1.14 billion. In contrast, more relaxed lockdown rules would have delivered an aggregate increase in the economic value of greenspace equal to £1.47 billion. COVID-19, Google mobility data, Latent class regression, Recreation demand model, Non-market valuation 4 2020 76 8 36 Environmental and Resource Economics 1161 1185 http://link.springer.com/10.1007/s10640-020-00489-y text/html Abstract Brett H. Day brett.day@exeter.ac.uk Department of Economics, University of Exeter
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article COVID-19 Tests the Market Stability Reserve Abstract We compare the decrease in energy demand and CO2 emissions in Europe during the financial crisis 2008–2009 with the expected drop in demand and emissions due to COVID-19, and the price response of the EU Emission Trading System (EU ETS). We ask whether the rather limited current price reduction may be due to the Market Stability Reserve (MSR), implemented in the EU ETS between the two crises. Stylized facts and basic theory are complemented with simulations based on a model of the EU ETS. Together, they suggest a mixed result. The MSR stabilizes the EU ETS price in turbulent times, but imperfectly. We show that the more persistent the COVID-19 shock is, the less the MSR is able to serve its purpose. COVID-19, EU ETS, MSR, Environmental policy H23, Q41, Q54, Q58 4 2020 76 8 19 Environmental and Resource Economics 855 865 http://link.springer.com/10.1007/s10640-020-00441-0 text/html Abstract Reyer Gerlagh r.gerlagh@uvt.nl Tilburg University Oslo Centre for Research on Environmental friendly Energy (CREE) Roweno J. R. K. Heijmans r.j.r.k.heijmans@uvt.nl Tilburg University Oslo Centre for Research on Environmental friendly Energy (CREE) Knut Einar Rosendahl knut.einar.rosendahl@nmbu.no Norwegian University of Life Sciences Oslo Centre for Research on Environmental friendly Energy (CREE)
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article The Corona-Pandemic: A Game-Theoretic Perspective on Regional and Global Governance Abstract We argue that the incentive structure of all individual and coordinated measures across countries to contain the corona-pandemic is that of a weakest-link public good game. We discuss a selection of theoretical and experimental key results of weakest-link games and interpret them in the light of the corona-pandemic. First, we highlight that experimental evidence does not support the assumption that coordination can be trivially solved, even among symmetric players. Second, we argue that for asymmetric countries the weakest-link game does not only pose a problem of coordination, but also a problem of cooperation. Third, we show how and under which conditions self-enforcing treaties can foster coordination and cooperation. We account for the possibility that countries make mistakes when choosing their actions. Our discussion shows that North–South cooperation is relevant and likely to be self-enforcing and that regional cooperation, e.g., within the EU, will also be important. Weakest-link game, Game theory, Experiments, COVID-19, Coordination, Cooperation 4 2020 76 8 23 Environmental and Resource Economics 913 927 http://link.springer.com/10.1007/s10640-020-00475-4 text/html Abstract Alejandro Caparrós alejandro.caparros@csic.es Spanish National Research Council (CSIC) Michael Finus michael.finus@uni-graz.at University of Graz University of Bath
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article Real-Time Estimation of the Short-Run Impact of COVID-19 on Economic Activity Using Electricity Market Data Abstract In response to the COVID-19 emergency, many countries have introduced a series of social-distancing measures including lockdowns and businesses’ shutdowns, in an attempt to curb the spread of the infection. Accordingly, the pandemic has been generating unprecedented disruption on practically every aspect of society. This paper demonstrates that high-frequency electricity market data can be used to estimate the causal, short-run impacts of COVID-19 on the economy, providing information that is essential for shaping future lockdown policy. Unlike official statistics, which are published with a delay of a few months, our approach permits almost real-time monitoring of the economic impact of the containment policies and the financial stimuli introduced to address the crisis. We illustrate our methodology using daily data for the Italian day-ahead power market. We estimate that the 3 weeks of most severe lockdown reduced the corresponding Italian Gross Domestic Product (GDP) by roughly 30%. Such negative impacts are now progressively declining but, at the end of June 2020, GDP is still about 8.5% lower than it would have been without the outbreak. COVID-19, Coronavirus, Economic impacts, Lockdown, GDP, Electricity quantity, Wholesale electricity markets, Pandemic, Fixed-effect regression, High-frequency estimates, Real-time monitoring 4 2020 76 8 21 Environmental and Resource Economics 885 900 http://link.springer.com/10.1007/s10640-020-00467-4 text/html Abstract Carlo Fezzi carlo.fezzi@unitn.it University of Trento University of Exeter Business School Valeria Fanghella valeria.fanghella@unitn.it University of Trento
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article Optimal Siting, Sizing, and Enforcement of Marine Protected Areas Abstract The design of protected areas, whether marine or terrestrial, rarely considers how people respond to the imposition of no-take sites with complete or incomplete enforcement. Consequently, these protected areas may fail to achieve their intended goal. We present and solve a spatial bio-economic model in which a manager chooses the optimal location, size, and enforcement level of a marine protected area (MPA). This manager acts as a Stackelberg leader, and her choices consider villagers’ best response to the MPA in a spatial Nash equilibrium of fishing site and effort decisions. Relevant to lower income country settings but general to other settings, we incorporate limited enforcement budgets, distance costs of traveling to fishing sites, and labor allocation to onshore wage opportunities. The optimal MPA varies markedly across alternative manager goals and budget sizes, but always induce changes in villagers’ decisions as a function of distance, dispersal, and wage. We consider MPA managers with ecological conservation goals and with economic goals, and identify the shortcomings of several common manager decision rules, including those focused on: (1) fishery outcomes rather than broader economic goals, (2) fish stocks at MPA sites rather than across the full marinescape, (3) absolute levels rather than additional values, and (4) costless enforcement. Our results demonstrate that such naïve or overly narrow decision rules can lead to inefficient MPA designs that miss economic and conservation opportunities. Additionality, Bio-economic model, Enforcement, Leakage, Nash equilibrium, No-take reserves, Park effectiveness, Reserve site selection, Spatial prioritization, Systematic conservation planning, Marine spatial planning 1 2020 77 9 10 Environmental and Resource Economics 229 269 http://link.springer.com/10.1007/s10640-020-00472-7 text/html Abstract H. J. Albers jo.albers@uwyo.edu University of Wyoming L. Preonas lpreonas@umd.edu University of Maryland T. Capitán tabare.capitan@gmail.com University of Wyoming E. J. Z. Robinson e.j.robinson@reading.ac.uk University of Reading R. Madrigal-Ballestero rmadriga@catie.ac.cr CATIE
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article The Effects of Air Pollution on COVID-19 Related Mortality in Northern Italy Abstract Long-term exposure to ambient air pollutant concentrations is known to cause chronic lung inflammation, a condition that may promote increased severity of COVID-19 syndrome caused by the novel coronavirus (SARS-CoV-2). In this paper, we empirically investigate the ecologic association between long-term concentrations of area-level fine particulate matter (PM2.5) and excess deaths in the first quarter of 2020 in municipalities of Northern Italy. The study accounts for potentially spatial confounding factors related to urbanization that may have influenced the spreading of SARS-CoV-2 and related COVID-19 mortality. Our epidemiological analysis uses geographical information (e.g., municipalities) and negative binomial regression to assess whether both ambient PM2.5 concentration and excess mortality have a similar spatial distribution. Our analysis suggests a positive association of ambient PM2.5 concentration on excess mortality in Northern Italy related to the COVID-19 epidemic. Our estimates suggest that a one-unit increase in PM2.5 concentration (µg/m3) is associated with a 9% (95% confidence interval: 6–12%) increase in COVID-19 related mortality. COVID-19, Mortality, Pollution, Italy, Municipalities 4 2020 76 8 6 Environmental and Resource Economics 611 634 Q53 I18 J11 http://link.springer.com/10.1007/s10640-020-00486-1 text/html Abstract Eric S. Coker University of Florida Laura Cavalli Fondazione Eni Enrico Mattei Enrico Fabrizi Università Cattolica del Sacro Cuore Gianni Guastella giovanni.guastella@unicatt.it Fondazione Eni Enrico Mattei Università Cattolica del Sacro Cuore Enrico Lippo Fondazione Eni Enrico Mattei Maria Laura Parisi Università degli Studi di Brescia Nicola Pontarollo Università degli Studi di Brescia Massimiliano Rizzati Fondazione Eni Enrico Mattei Alessandro Varacca Università Cattolica del Sacro Cuore Sergio Vergalli Fondazione Eni Enrico Mattei Università degli Studi di Brescia
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article If the Objective is Herd Immunity, on Whom Should it be Built? Abstract Assuming that there is no other solution than herd immunity in front of the current pandemic, on which groups of citizens should we build this herd immunity? Given the fact that young people face a mortality rate which is at least a thousand times smaller than people aged 70 years and more, there is a simple rational to build it on these younger generations. The transfer of some mortality risk from the elderly to younger people raises difficult ethical issues. However, none of the familiar moral or operational guidelines (equality of rights, VSL, QALY, ...) that have been used in the Western world over the last century weights the value of young lives 1000 times or more than the lives of the elders. This suggests that Society could offer covid protection to the elders by recommending them to remain confined as long as this herd immunity has not been attained by the younger generations. This would be a potent demonstration of intergenerational solidarity towards the most vulnerable people in our community. The welfare gain of this age-specific deconfinement strategy is huge, as it can reduce the global death toll by more than 80% as compared to a strategy of non-targeted herd immunity. VSL, QALY, Covid, Pandemics, Herd immunity, Deconfinement 4 2020 76 8 10 Environmental and Resource Economics 671 683 http://link.springer.com/10.1007/s10640-020-00504-2 text/html Abstract Christian Gollier christian.gollier@tse-fr.eu University of Toulouse-Capitole
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article What Policies Address Both the Coronavirus Crisis and the Climate Crisis? Abstract The coronavirus pandemic has led many countries to initiate unprecedented economic recovery packages. Policymakers tackling the coronavirus crisis have also been encouraged to prioritize policies which help mitigate a second, looming crisis: climate change. We identify and analyze policies that combat both the coronavirus crisis and the climate crisis. We analyze both the long-run climate impacts from coronavirus-related economic recovery policies, and the impacts of long-run climate policies on economic recovery and public health post-recession. We base our analysis on data on emissions, employment and corona-related layoffs across sectors, and on previous research. We show that, among climate policies, labor-intensive green infrastructure projects, planting trees, and in particular pricing carbon coupled with reduced labor taxation boost economic recovery. Among coronavirus policies, aiding services sectors (leisure services such as restaurants and culture, or professional services such as technology), education and the healthcare sector appear most promising, being labor intensive yet low-emission—if such sectoral aid is conditioned on being directed towards employment and on low-carbon supply chains. Large-scale green infrastructure projects and green R&D investment, while good for the climate, are unlikely to generate enough employment to effectively alleviate the coronavirus crisis. 4 2020 76 8 16 Environmental and Resource Economics 789 810 http://link.springer.com/10.1007/s10640-020-00451-y text/html Abstract Gustav Engström gustav.engstrom@beijer.kva.se The Royal Swedish Academy of Sciences Johan Gars johan.gars@kva.se The Royal Swedish Academy of Sciences Niko Jaakkola niko.jaakkola@unibo.it University of Bologna Therese Lindahl therese@beijer.kva.se The Royal Swedish Academy of Sciences Stockholm University Daniel Spiro daniel.spiro.ec@gmail.com Uppsala University Arthur A. van Benthem arthurv@wharton.upenn.edu University of Pennsylvania National Bureau of Economic Research
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article Disease Risk from Human–Environment Interactions: Environment and Development Economics for Joint Conservation-Health Policy Abstract Emergence of COVID-19 joins a collection of evidence that local and global health are influenced by human interactions with the natural environment. Frameworks that simultaneously model decisions to interact with natural systems and environmental mechanisms of zoonotic disease spread allow for identification of policy levers to mitigate disease risk and promote conservation. Here, we highlight opportunities to broaden existing conservation economics frameworks that represent human behavior to include disease transmission in order to inform conservation-disease risk policy. Using examples from wildlife markets and forest extraction, we call for environment, resource, and development economists to develop and analyze empirically-grounded models of people’s decisions about interacting with the environment, with particular attention to LMIC settings and ecological-epidemiological risk factors. Integrating the decisions that drive human–environment interactions with ecological and epidemiological research in an interdisciplinary approach to understanding pathogen transmission will inform policy needed to improve both conservation and disease spread outcomes. Bats, Deforestation, Disease, Fragmentation, Land use, Pathogen spillover, Wildlife markets, Zoonoses 4 2020 76 8 24 Environmental and Resource Economics 929 944 http://link.springer.com/10.1007/s10640-020-00449-6 text/html Abstract Heidi J. Albers jo.albers@uwyo.edu University of Wyoming Katherine D. Lee University of Idaho Jennifer R. Rushlow University of Wyoming Carlos Zambrana-Torrselio EcoHealth Alliance
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article Infectious Diseases and Meat Production Abstract Most infectious diseases in humans originate from animals. In this paper, we explore the role of animal farming and meat consumption in the emergence and amplification of infectious diseases. First, we discuss how meat production increases epidemic risks, either directly through increased contact with wild and farmed animals or indirectly through its impact on the environment (e.g., biodiversity loss, water use, climate change). Traditional food systems such as bushmeat and backyard farming increase the risks of disease transmission from wild animals, while intensive farming amplifies the impact of the disease due to the high density, genetic proximity, increased immunodeficiency, and live transport of farmed animals. Second, we describe the various direct and indirect costs of animal-based infectious diseases, and in particular, how these diseases can negatively impact the economy and the environment. Last, we discuss policies to reduce the social costs of infectious diseases. While existing regulatory frameworks such as the “One Health” approach focus on increasing farms’ biosecurity and emergency preparedness, we emphasize the need to better align stakeholders’ incentives and to reduce meat consumption. We discuss in particular the implementation of a “zoonotic” Pigouvian tax, and innovations such as insect-based food or cultured meat. Infectious diseases, Meat production, Meat consumption, Biodiversity, Prevention, Intensive farming, Regulation, Taxation 4 2020 76 8 28 Environmental and Resource Economics 1019 1044 I18 Q18 Q57 http://link.springer.com/10.1007/s10640-020-00484-3 text/html Abstract Romain Espinosa CREM Damian Tago Regional Office for Asia and the Pacific Nicolas Treich nicolas.treich@inrae.fr INRAE
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article Moral Suasion and the Private Provision of Public Goods: Evidence from the COVID-19 Pandemic Abstract We study how moral suasion that appeals to two major ethical theories, Consequentialism and Deontology, affects individual intentions to contribute to a public good. We use the COVID-19 pandemic as an exemplary case where there is a large gap between private and social costs and where moral suasion has been widely used as a policy instrument. Based on a survey experiment with a representative sample of around 3500 Germans at the beginning of the pandemic, we study how moral appeals affect contributions with low and high opportunity costs, hand washing and social distancing, to reduce the infection externality as well as the support for governmental regulation. We find that Deontological moral suasion, appealing to individual moral duty, is effective in increasing planned social distancing and hand-washing, while a Consequentialist appeal only increases planned hand-washing. Both appeals increase support for governmental regulation. Exploring heterogeneous treatment effects reveals that younger respondents are more susceptible to Deontological appeals. Our results highlight the potential of moral appeals to induce intended private contributions to a public good or the reduction of externalities, which can help to overcome collective action problems for a range of environmental issues. COVID-19, Coronavirus, Public good contributions, Moral appeal, Moral suasion 4 2020 76 8 33 Environmental and Resource Economics 1117 1138 C93 D62 D64 H41 I18 Q58 http://link.springer.com/10.1007/s10640-020-00477-2 text/html Abstract Björn Bos University of Hamburg Moritz A. Drupp Moritz.Drupp@uni-hamburg.de University of Hamburg CESifo Jasper N. Meya Leipzig University German Centre for Integrative Biodiversity Research (iDiv) Halle-Jena-Leipzig Martin F. Quaas Leipzig University German Centre for Integrative Biodiversity Research (iDiv) Halle-Jena-Leipzig
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article Is the Price System or Rationing More Effective in Getting a Mask to Those Who Need It Most? Abstract Weitzman’s classic insight on the virtues of allocating a scarce good via the price system or through rationing is applied to the problem of distributing masks, when the use of a mask provides a positive external benefit. I show that if a market leaves some individuals without a mask (when potentially there is supply for all), then rationing may be the superior option. When the variation in need is small, then even if the external effect of mask wearing is approximately equal to the personal benefit, even 10–20% maskless in the population may justify rationing. Weitzman, Covid-19, Masks, Prices versus quantities 4 2020 76 8 8 Environmental and Resource Economics 655 663 http://link.springer.com/10.1007/s10640-020-00485-2 text/html Abstract Alistair Munro alistair-munro@grips.ac.jp National Graduate Institute for Policy Studies (GRIPS)
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article Impacts of the COVID-19 Pandemic on the Global Agricultural Markets Abstract This paper analyses the impacts on global agricultural markets of the demand shock caused by the COVID-19 pandemic and the first wave of lockdown measures imposed by the governments in the first semester of 2020 to contain it. Specifically, we perform a scenario-based analysis on the IMF economic growth forecasts for 2020 and 2021 using a global multi-commodity agricultural market model. According to our results, the sharp decline in economic growth causes a decrease in international meat prices by 7–18% in 2020 and dairy products by 4–7% compared to a business as usual situation. Following the slowdown of the economy, biofuel prices fall strongly in 2020, followed by their main feedstocks, maize and oilseeds. Although the income losses and local supply chain disruptions associated with the pandemic undoubtedly has led to an increase in food insecurity in many developing countries, global food consumption is largely unaffected due to the inelastic demand of most agricultural commodities and the short duration of the shock. From an environmental viewpoint, the COVID-19 impacts point to a modest reduction of direct greenhouse gases from agriculture of about 1% or 50 million tonnes of carbon dioxide equivalents in 2020 and 2021. COVID-19, GDP shock, Agricultural markets, Biofuel markets, Aglink-Cosimo 4 2020 76 8 30 Environmental and Resource Economics 1067 1079 http://link.springer.com/10.1007/s10640-020-00473-6 text/html Abstract Christian Elleby christian.elleby@ec.europa.eu European Commission, Joint Research Centre Ignacio Pérez Domínguez European Commission, Joint Research Centre Marcel Adenauer OECD Giampiero Genovese European Commission, Joint Research Centre
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article Non-participation and Heterogeneity in Stated: A Double Hurdle Latent Class Approach for Climate Change Adaptation Plans and Ecosystem Services Abstract We introduce a double hurdle latent class approach to model choice experiments, where serial non-participants and clustered preference patterns are present. The proposed approach is applied to a recent stated preference study in which the residents of the Eastern Shore of Virginia answer choice questions about alternative coastal climate change adaptation plans. While the double hurdle latent class model avoids self-contradictory assumptions, estimates and tests show that, compared with an unrestricted latent class model, it achieves a significantly better statistical fit and maintains the capability to link the heterogeneity of participants’ preferences to their attributes. Moreover, the double hurdle latent class model also provides important implications in how to conduct welfare analysis based on different behavioral patterns of different groups, which leads to nontrivial changes in welfare measures. The empirical results highlight that certain ecosystem services may increase the willingness to pay for coastal climate change adaptation plans. Built assets, Choice experiment, Double hurdle model, Mixture model, Natural assets, Serial non-participation, Valuation, Resilience, Adaptation, Sea-level rise 1 2020 77 9 2 Environmental and Resource Economics 35 67 http://link.springer.com/10.1007/s10640-020-00434-z text/html Abstract Zhenshan Chen zhenshan.chen@uconn.edu University of Connecticut Stephen K. Swallow University of Connecticut Ian T. Yue Delaware Department of Natural Resources and Environmental Control
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article Linking Human Destruction of Nature to COVID-19 Increases Support for Wildlife Conservation Policies Abstract This paper investigates if narratives varying the cause of the COVID-19 pandemic affects pro-wildlife conservation outcomes. In a pre-registered online experiment (N = 1081), we randomly allocated subjects to either a control group or to one of three narrative treatment groups, each presenting a different likely cause of the COVID-19 outbreak: an animal cause; an animal and human cause (AHC); and an animal, human or lab cause. We found that the AHC narrative elicited significantly greater pro-conservation policy support, especially for bans in the commercial trade of wildlife, when compared to the control group. Possible mechanisms driving this effect are that AHC narratives were less familiar, elicited higher mental and emotional engagement, and induced feelings that firms and governments are responsible for mitigating wildlife extinction. Narratives, Communication, Conservation, Wildlife, Extinction, Conservation policy, Environmental policy, Prosocial behaviour, Experiment, COVID-19 4 2020 76 8 26 Environmental and Resource Economics 963 999 D62 D64 D83 Q20 Q28 C99 http://link.springer.com/10.1007/s10640-020-00444-x text/html Abstract Ganga Shreedhar G.S.Shreedhar@lse.ac.uk The London School of Economics and Political Science Susana Mourato The London School of Economics and Political Science
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article Diagnosing Insensitivity to Scope in Contingent Valuation Abstract Sensitivity to scope is considered a desirable property of contingent valuation studies and often treated as a necessary condition for validity. We first provide an overview of scope insensitivity explanations put forth in the environmental valuation literature. Then we analyze data from a contingent valuation survey eliciting willingness-to-pay to prevent oil spills of four different magnitudes in Arctic Norway. In the baseline analysis, the scope inference is ambiguous. There is only statistical difference in willingness to pay to avoid a very large versus small oil spill (NOK 1869 and NOK 1086, respectively). However, further explorations show that several confounding factors suggested in the literature influence the scope inference. The scope sensitivity improves when we control for subjective probabilities of amenity provision, exclude respondents based on the debriefing questions, take into consideration the sample sizes, and impose diminishing marginal utility. Overall, the analysis supports an emerging view in the contingent valuation literature suggesting that statistical scope insensitivity is not a sufficient reason for deeming a study invalid. Contingent valuation, Sensitivity to scope, Scope testing, Scope elasticity, Willingness-to-pay 1 2020 77 9 8 Environmental and Resource Economics 191 216 http://link.springer.com/10.1007/s10640-020-00470-9 text/html Abstract Ana Faria Lopes ana.f.lopes@uis.no University of Stavanger Gorm Kipperberg University of Stavanger
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article Building a Social Mandate for Climate Action: Lessons from COVID-19 Abstract The COVID-19 imposed lockdown has led to a number of temporary environmental side effects (reduced global emissions, cleaner air, less noise), that the climate community has aspired to achieve over a number of decades. However, these benefits have been achieved at a massive cost to welfare and the economy. This commentary draws lessons from the COVID-19 crisis for climate change. It discusses whether there are more sustainable ways of achieving these benefits, as part of a more desirable, low carbon resilient future, in a more planned, inclusive and less disruptive way. In order to achieve this, we argue for a clearer social contract between citizens and the state. We discuss how COVID-19 has demonstrated that behaviours can change abruptly, that these changes come at a cost, that we need a ‘social mandate’ to ensure these changes remain in the long-term, and that science plays an important role in informing this process. We suggest that deliberative engagement mechanisms, such as citizens’ assemblies and juries, could be a powerful way to build a social mandate for climate action post-COVID-19. This would enable behaviour changes to become more accepted, embedded and bearable in the long-term and provide the basis for future climate action. Behaviour change, Climate change, COVID-19, Deliberative governance, Social mandate 4 2020 76 8 32 Environmental and Resource Economics 1107 1115 http://link.springer.com/10.1007/s10640-020-00446-9 text/html Abstract Candice Howarth c.howarth@lse.ac.uk London School of Economics and Political Science Peter Bryant Shared Future Adam Corner Climate Outreach Sam Fankhauser London School of Economics and Political Science Andy Gouldson University of Leeds Lorraine Whitmarsh Cardiff University Rebecca Willis Lancaster University
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article The Unintended Impact of Colombia’s Covid-19 Lockdown on Forest Fires Abstract The covid-19 pandemic led to rapid and large-scale government intervention in economies and societies. A common policy response to covid-19 outbreaks has been the lockdown or quarantine. Designed to slow the spread of the disease, lockdowns have unintended consequences for the environment. This article examines the impact of Colombia’s lockdown on forest fires, motivated by satellite data showing a particularly large upsurge of fires at around the time of lockdown implementation. We find that Colombia’s lockdown is associated with an increase in forest fires compared to three different counterfactuals, constructed to simulate the expected number of fires in the absence of the lockdown. To varying degrees across Colombia’s regions, the presence of armed groups is correlated with this fire upsurge. Mechanisms through which the lockdown might influence fire rates are discussed, including the mobilisation of armed groups and the reduction in the monitoring capacity of state and conservation organisations during the covid-19 outbreak. Given the fast-developing situation in Colombia, we conclude with some ideas for further research. Armed groups, Covid-19, Colombia, Deforestation, Forest fires, Lockdown 4 2020 76 8 31 Environmental and Resource Economics 1081 1105 Q23 Q56 Q58 http://link.springer.com/10.1007/s10640-020-00501-5 text/html Abstract Mónica Amador-Jiménez University of Bristol Naomi Millner University of Bristol Charles Palmer c.palmer1@lse.ac.uk London School of Economics (LSE) R. Toby Pennington University of Exeter Royal Botanic Garden Lorenzo Sileci London School of Economics (LSE)
oai:RePEc:kap:enreec:v:76:y:2020:i:4:d:10.1007_s10640-020-00439-82020-09-03RePEc:kap:enreec
article A Study on Herd Immunity of COVID-19 in South Korea: Using a Stochastic Economic-Epidemiological Model Abstract Vaccination is an effective measure to control the diffusion of infectious disease such as COVID-19. This paper analyzes the basic reproduction number in South Korea which enables us to identify a necessary level of vaccine stockpile to achieve herd immunity. An susceptible-infected-susceptible model is adopted that allows a stochastic diffusion. The result shows that the basic reproduction number of South Korea is approximately 2 which is substantially lower than those of the other regions. The herd immunity calculated from economic-epidemiological model suggests that at least 62% of the susceptible population be vaccinated when COVID-19 vaccine becomes available. COVID-19, Vaccination stockpile, SIS, Stochastic disease 4 2020 76 8 9 Environmental and Resource Economics 665 670 D81 I18 http://link.springer.com/10.1007/s10640-020-00439-8 text/html Abstract Hojeong Park hjeongpark@korea.ac.kr Korea University Korea University Songhee H. Kim Yonsei University Yonsei University
oai:RePEc:kap:enreec:v:77:y:2020:i:1:d:10.1007_s10640-020-00457-62020-09-03RePEc:kap:enreec
article Post-collection Separation of Plastic Waste: Better for the Environment and Lower Collection Costs? Abstract The European Union advocates a plastic waste recycling rate of more than 55%. Even for the Netherlands, which has already invested heavily in recycling plastic waste of households, it will still be a challenge to meet this target. The preferred solution to fulfil this target in the Netherlands is implementing separate collection schemes at the curbside, although some municipalities invested in post-separation. We show, based on data for 2013–2014, that post-collection separation is an advisable alternative, with an increased separation of plastic waste compared with home separation. This is even slightly the case if home separation is combined with a unit-based pricing system for unsorted waste and with a frequent door-to-door collection of plastic waste. Moreover, there are indications that the cost effectiveness of recycling plastic waste increases if post separation is chosen. In addition, some claim that unit-based pricing of unsorted waste is important to create an awareness effect to buy less packaging material. However, based on the combination of post separation and unit-based pricing, we have no indication for such awareness effect as the price effect on the amount of plastic waste is insignificantly small. Plastic waste, Recycling, Post separation, Home separation, Cost effectiveness 1 2020 77 9 5 Environmental and Resource Economics 127 142 http://link.springer.com/10.1007/s10640-020-00457-6 text/html Abstract Elbert Dijkgraaf dijkgraaf@ese.eur.nl Erasmus University Rotterdam Raymond Gradus r.h.j.m.gradus@vu.nl VU University Amsterdam
oai:RePEc:kap:enreec:v:76:y:2020:i:4:d:10.1007_s10640-020-00438-92020-09-03RePEc:kap:enreec
article Environmental and Regulatory Concerns During the COVID-19 Pandemic: Results from the Pandemic Food and Stigma Survey Abstract In this article, we present data from the monthly Pandemic Food and Stigma Survey (PFSS), a nationwide representative sample of adults in the United States designed to identify how the pandemic is affecting concerns about food and the environment. Two surveys were conducted in May and June 2020. Our analysis suggests that the public’s concern about contracting COVID-19 has been high; however, infection with COVID-19 was not the only concern. A majority of respondents remained strongly concerned about environmental issues, such as climate change, while responses to sudden relaxations of environmental and food safety policies varied. We analyze the PFSS data to identify factors associated with concerns about pandemic and environmental regulatory changes. In general, we find that people whose food security has been threatened by COVID-19 remain concerned about relaxation of environmental regulations, and those most inclined to take steps to reduce spread of the virus, such as wearing masks and social distancing, are more concerned about relaxed regulations than those less willing to take mitigating actions. COVID-19, Environmental attitudes, Environmental regulations, Food safety regulations 4 2020 76 8 34 Environmental and Resource Economics 1139 1148 C83 I12 I18 Q58 http://link.springer.com/10.1007/s10640-020-00438-9 text/html Abstract Maik Kecinski University of Delaware Kent D. Messer messer@udel.edu University of Delaware Brandon R. McFadden University of Delaware Trey Malone Michigan State University
oai:RePEc:kap:enreec:v:76:y:2020:i:4:d:10.1007_s10640-020-00454-92020-09-03RePEc:kap:enreec
article Green Recovery Policies for the COVID-19 Crisis: Modelling the Impact on the Economy and Greenhouse Gas Emissions Abstract The COVID-19 pandemic induces the worst economic downturn since the Second World War, requiring governments to design large-scale recovery plans to overcome this crisis. This paper quantitatively assesses the potential of government investments in eco-friendly construction projects to boost the economy and simultaneously realise environmental gains through reduced energy consumption and related greenhouse gas emissions. The analysis uses a Computable General Equilibrium model that examines the macroeconomic impact of the COVID-19 crisis in a small open economy (Belgium). Subsequently, the impact of the proposed policy is assessed through comparative analysis for macroeconomic parameters as well as CO2 equivalent emissions for four scenarios. Our findings demonstrate that the COVID-19 pandemic damages economies considerably, however, the reduction in emissions is less than proportionate. Still, well-designed public policies can reverse this trend, achieving both economic growth and a disproportionally large decrease in emissions. Moreover, the positive effect of such a decoupling policy on GDP is even stronger during the pandemic than compared to the pre-COVID-19 period. This is the result of a targeted, investment-induced green transition towards low energy-intensive economic activities. Finally, this paper describes how the net effect on the government budget is positive through the indirect gains of the economic uptake. CGE model, Climate change, COVID-19, Economic recession, Greenhouse gas emissions, Pandemic, Policy analysis, Recovery plans, Small open economy, Sustainable investment 4 2020 76 8 13 Environmental and Resource Economics 731 750 http://link.springer.com/10.1007/s10640-020-00454-9 text/html Abstract B. Lahcen bart.lahcen@vito.be VITO, Unit of Sustainable Materials Center for Economics and Corporate Sustainability (CEDON) KU Leuven J. Brusselaers VITO, Unit of Sustainable Materials K. Vrancken VITO, Unit of Sustainable Materials Y. Dams VITO, Unit of Sustainable Materials C. Silva Paes Ghent University J. Eyckmans Center for Economics and Corporate Sustainability (CEDON) KU Leuven S. Rousseau Center for Economics and Corporate Sustainability (CEDON) KU Leuven
oai:RePEc:kap:enreec:v:76:y:2020:i:4:d:10.1007_s10640-020-00488-z2020-09-03RePEc:kap:enreec
article Assessing Short-Term and Long-Term Economic and Environmental Effects of the COVID-19 Crisis in France Abstract In response to the COVID-19 health crisis, the French government has imposed drastic lockdown measures for a period of 55 days. This paper provides a quantitative assessment of the economic and environmental impacts of these measures in the short and long term. We use a Computable General Equilibrium model designed to assess environmental and energy policies impacts at the macroeconomic and sectoral levels. We find that the lockdown has led to a significant decrease in economic output of 5% of GDP, but a positive environmental impact with a 6.6% reduction in CO2 emissions in 2020. Both decreases are temporary: economic and environmental indicators return to their baseline trajectory after a few years. CO2 emissions even end up significantly higher after the COVID-19 crisis when we account for persistently low oil prices. We then investigate whether implementing carbon pricing can still yield positive macroeconomic dividends in the post-COVID recovery. We find that implementing ambitious carbon pricing speeds up economic recovery while significantly reducing CO2 emissions. By maintaining high fossil fuel prices, carbon taxation reduces the imports of fossil energy and stimulates energy efficiency investments while the full redistribution of tax proceeds does not hamper the recovery. Carbon tax, CO2 emissions, Macroeconomic modeling, Neo-Keynesian CGE model, Post-COVID economy 4 2020 76 8 20 Environmental and Resource Economics 867 883 E12 E17 E27 E37 E47 D57 D58 http://link.springer.com/10.1007/s10640-020-00488-z text/html Abstract Paul Malliet paul.malliet@sciencespo.fr OFCE - French Economic Observatory Frédéric Reynès OFCE - French Economic Observatory NEO - Netherlands Economic Observatory TNO - Netherlands Organization for Applied Scientific Research Gissela Landa OFCE - French Economic Observatory Meriem Hamdi-Cherif OFCE - French Economic Observatory Aurélien Saussay OFCE - French Economic Observatory LSE - London School of Economics
oai:RePEc:kap:enreec:v:76:y:2020:i:4:d:10.1007_s10640-020-00478-12020-09-03RePEc:kap:enreec
article Suggestions for a Covid-19 Post-Pandemic Research Agenda in Environmental Economics Abstract In this article we draw upon early lessons from the 2020 Covid-19 crisis and discuss how these may relate to a future research agenda in environmental economics. In particular, we describe how the events surrounding the Covid-19 crisis may inform environmental research related to globalization and cooperation, the green transition, pricing carbon externalities, as well as the role of uncertainty and timing of policy inventions. We also discuss the implications for future empirical research in this area. Covid-19, Environmental economics, Research agenda, Green stimulus, Cooperation, Globalization, Green transition 4 2020 76 8 37 Environmental and Resource Economics 1187 1213 http://link.springer.com/10.1007/s10640-020-00478-1 text/html Abstract Robert J. R. Elliott r.j.elliott@bham.ac.uk Birmingham University Ingmar Schumacher ingmar.schumacher@ipag.fr IPAG Business School Cees Withagen cwithagen@feweb.vu.nl Department of Spatial Economics Vrije Universiteit Amsterdam
oai:RePEc:kap:enreec:v:76:y:2020:i:4:d:10.1007_s10640-020-00496-z2020-09-03RePEc:kap:enreec
article Editorial: Economics of the Environment in the Shadow of Coronavirus 4 2020 76 8 2 Environmental and Resource Economics 519 523 http://link.springer.com/10.1007/s10640-020-00496-z text/html Abstract Ian J. Bateman i.bateman@exeter.ac.uk University of Exeter Business School University of Western Australia Astrid Dannenberg University of Kassel Robert Elliott University of Birmingham Michael Finus University of Graz Phoebe Koundouri Athens University of Economics and Business Katrin Millock Paris School of Economics Alistair Munro The National Graduate Institute for Policy Studies (GRIPS) Elizabeth J. Z. Robinson University of Reading Daniel Rondeau University of Victoria Ingmar Schumacher IPAG Business School Eric Strobl University of Bern Anastasios Xepapadeas Athens University of Economics and Business University of Bologna
oai:RePEc:kap:enreec:v:77:y:2020:i:1:d:10.1007_s10640-020-00436-x2020-09-03RePEc:kap:enreec
article Carbon Pricing Efficacy: Cross-Country Evidence Abstract To date there has been an absence of cross-country empirical studies on the efficacy of carbon pricing. In this paper we present estimates of the contribution of carbon pricing to reducing national carbon dioxide (CO2) emissions from fuel combustion, using several econometric modelling approaches that control for other key policies and for structural factors that are relevant for emissions. We use data for 142 countries over a period of two decades, 43 of which had a carbon price in place at the national level or below by the end of the study period. We find evidence that the average annual growth rate of CO2 emissions from fuel combustion has been around 2 percentage points lower in countries that have had a carbon price compared to countries without. An additional euro per tonne of CO2 in carbon price is associated with a reduction in the subsequent annual emissions growth rate of approximately 0.3 percentage points, all else equal. While it is impossible to fully control for all relevant influences on emissions growth, our estimates suggest that the emissions trajectories of countries with and without carbon prices tend to diverge over time. Carbon dioxide emissions, Carbon pricing, Carbon tax, Cross-country, Emissions trading, Fossil fuel policies, Growth rates, Renewable energy policies 1 2020 77 9 3 Environmental and Resource Economics 69 94 O57 Q43 Q48 Q50 Q58 http://link.springer.com/10.1007/s10640-020-00436-x text/html Abstract Rohan Best rohan.best@mq.edu.au Macquarie University Paul J. Burke Australian National University Frank Jotzo Australian National University
oai:RePEc:kap:enreec:v::y::i::d:10.1007_s10640-020-00429-w2020-06-06RePEc:kap:enreec
article Insurance and Forest Rotation Decisions Under Storm Risk Abstract Forests are often threatened by storms; and such a threat is likely to rise due to climate change. Using private forest insurance as a vehicle to fund resilience and adaptation emerge as a policy recommendation. Hence the forest owners would have the possibility to consider insurance when defining their forest management practices. In this context, we analyze the impact of the forest owner’s insurance decision on forest management under storm risk. We extend the Faustmann optimal rotation model under risk, first, considering the forest owner’s risk preferences, and second, integrating the decision of insurance. With this analytical model, we show that as the insurance coverage increases, the rotation length increases independently of the forest owner’s risk aversion. In addition, we identify some cases where it may be optimal for the forest owner to not adopt insurance contract. Finally, we prove that a public transfer, reducing the insurance premium, may encourage the forest owner to insure. Faustmann value, Insurance, Storm risk, Rotation length, Public transfer Environmental and Resource Economics 1 21 D81 G22 Q23 http://link.springer.com/10.1007/s10640-020-00429-w text/html Abstract Patrice Loisel patrice.loisel@inrae.fr MISTEA, Université Montpellier, INRAE, Institut Agro Marielle Brunette marielle.brunette@inrae.fr Université de Lorraine, Université de Strasbourg, AgroParisTech, CNRS, INRAE, BETA Climate Economic Chair Stéphane Couture stephane.couture@inrae.fr MIAT, INRAE, University of Toulouse
oai:RePEc:kap:enreec:v::y::i::d:10.1007_s10640-020-00430-32020-06-06RePEc:kap:enreec
article Non-constant Discounting, Social Welfare and Endogenous Growth with Pollution Externalities Abstract We analyze the effect of non-constant discounting on economic growth and social welfare in an endogenous growth model with pollution externalities. For time-consistent agents, who play a game against their future selves, the balanced growth equilibrium is compared to the case of standard exponential discounting. A decaying instantaneous discount rate leads to slower growth in a centralized economy, while its effect for a competitive economy is ambiguous. Interestingly, when comparing the planned and the competitive equilibria, the assumption of non-constant discounting may imply greater social welfare in the market equilibrium under two conditions. First, the pollution externality on utility must be large with respect to the externality on production, so that the central planner slows down growth below the growth rate in the market economy. Secondly, individuals’ degree of impatience should decrease sharply with the time distance from the present. Concerning policy implications, we observe that under log-utility policies may not be necessary, while for an isoelastic utility with an elasticity lower than one, introducing policy instruments is less effective than under constant discounting. Endogenous growth, Environmental policies, Non-constant discounting, Social welfare, Sustainability, Time-consistent solutions D91, O44, C61 Environmental and Resource Economics 1 35 http://link.springer.com/10.1007/s10640-020-00430-3 text/html Abstract Francisco Cabo pcabo@eco.uva.es Universidad de Valladolid Guiomar Martín-Herrán guiomar@eco.uva.es Universidad de Valladolid María Pilar Martínez-García pilarmg@um.es Universidad de Murcia, Campus del Espinardo
oai:RePEc:kap:enreec:v::y::i::d:10.1007_s10640-020-00457-62020-07-19RePEc:kap:enreec
article Post-collection Separation of Plastic Waste: Better for the Environment and Lower Collection Costs? Abstract The European Union advocates a plastic waste recycling rate of more than 55%. Even for the Netherlands, which has already invested heavily in recycling plastic waste of households, it will still be a challenge to meet this target. The preferred solution to fulfil this target in the Netherlands is implementing separate collection schemes at the curbside, although some municipalities invested in post-separation. We show, based on data for 2013–2014, that post-collection separation is an advisable alternative, with an increased separation of plastic waste compared with home separation. This is even slightly the case if home separation is combined with a unit-based pricing system for unsorted waste and with a frequent door-to-door collection of plastic waste. Moreover, there are indications that the cost effectiveness of recycling plastic waste increases if post separation is chosen. In addition, some claim that unit-based pricing of unsorted waste is important to create an awareness effect to buy less packaging material. However, based on the combination of post separation and unit-based pricing, we have no indication for such awareness effect as the price effect on the amount of plastic waste is insignificantly small. Plastic waste, Recycling, Post separation, Home separation, Cost effectiveness Environmental and Resource Economics 1 16 http://link.springer.com/10.1007/s10640-020-00457-6 text/html Abstract Elbert Dijkgraaf dijkgraaf@ese.eur.nl Erasmus University Rotterdam Raymond Gradus r.h.j.m.gradus@vu.nl VU University Amsterdam
oai:RePEc:kap:enreec:v:65:y:2016:i:4:d:10.1007_s10640-015-9919-82020-08-19RePEc:kap:enreec
article Discrete Choice Experiments in Developing Countries: Willingness to Pay Versus Willingness to Work Abstract A concern when conducting stated preference valuation studies in rural developing or very low income contexts is the use of monetary willingness to pay (WTP) estimates. In circumstances where cash incomes are extremely low, a significant proportion of the population are not engaged in waged labour and the exchange of goods or services is augmented through barter or work exchange, the role of money is likely to be different from that within an urban developed setting. As such, ability to pay using money may be impaired and downwardly biased when compared with other mediums of exchange. In recognition of this several studies have used hypothetical labour contributions as payment vehicles and a common finding is that households are more often willing to contribute labour than they are money. In this paper we present the results of a split sample DCE using money and labour contributions as payment vehicles for improved drinking water quality in Kandal Province, Cambodia. We find little differences between the payment vehicles in terms of attribute non-attendance, marginal utilities of attributes or derived welfare values. We argue that this provides support for the use of WTP in rural developing areas where there are functioning labour markets. Choice experiments, Development, Health, Payment vehicles, WTP, WTW, Risk, Water, Latent class, Attribute non-attedance 4 2016 65 12 2 Environmental and Resource Economics 697 721 http://link.springer.com/10.1007/s10640-015-9919-8 text/html Abstract J. M. Gibson jon.m.gibson@manchester.ac.uk Manchester Centre for Health Economics, University of Manchester D. Rigby University of Manchester D. A. Polya University of Manchester N. Russell University of Manchester
oai:RePEc:kap:enreec:v:65:y:2016:i:4:d:10.1007_s10640-015-9920-22020-08-19RePEc:kap:enreec
article Reference Dependence Effects on WTA and WTP Value Functions and Their Disparity Abstract In this study we investigate two reference dependence effects in a choice experiment. The first is the effect of the well-known distinction between gains and losses, the second is the effect of changing the reference value on willingness to pay (WTP) and willingness to accept (WTA). The latter has to our knowledge not been studied before. We hypothesize that there are differences between WTA and WTP, and that both value functions and their disparity are affected by the absolute value of the reference point. We test our hypotheses using a choice experiment with trade-offs between changes in flood probabilities and costs. The choice experiments elicit WTP and WTA, using two flood probability reference values, yielding four separate value functions. Our findings show that a substantial WTA–WTP disparity exists, and that this disparity increases when moving away from the reference point. Also, both WTA and WTP value functions are affected by the flood probability reference value, and the WTA–WTP disparity increases when the flood probability reference point increases. Both findings suggest that welfare effects caused by changes in public good provision depend not only on the direction of change (loss aversion), but also the reference value. Moreover, our results show that the latter effect is larger for losses than for gains. We introduce the concept of reference point updating as a possible explanation for these findings. Value functions, WTA–WTP disparity, Prospect theory, Reference dependence, Choice experiment, Flood probability, Reference point updating 4 2016 65 12 3 Environmental and Resource Economics 723 745 D80 H40 Q25 Q54 http://link.springer.com/10.1007/s10640-015-9920-2 text/html Abstract Mark J. Koetse mark.koetse@vu.nl VU University Amsterdam Roy Brouwer roy.brouwer@vu.nl VU University Amsterdam
oai:RePEc:kap:enreec:v:65:y:2016:i:4:d:10.1007_s10640-015-9917-x2020-08-19RePEc:kap:enreec
article Exhaustibility and Risk as Asset Class Dimensions: A Social Investor Approach to Capital-Resource Economies Abstract This paper develops a framework in which asset class dimensions are extended to include both risk and exhaustibility for explaining the evolution of shadow prices of marginal units of exhaustible natural resources in capital-resource economies. It is shown that the pricing kernel function required for socially valuing marginal units of exhaustible resource, hereafter called the Exhaustion-Stochastic Discount Factor, combines a factor that discounts for risk and another factor that discounts for resource exhaustion over time. The social rate of return on the marginal unit of resource stock adds to the risk-premium an exhaustion premium that accounts for the resource depletion over time. In this setting, the principle of no-arbitrage holds by extending asset-class dimensions to include not only a risk dimension but also an exhaustibility dimension. Capital-resource economies, Recursive utility, Shadow price, Marginal analysis, Exhaustibility and risk dimensions, Asset classes, Social discount rate, Exhaustion premium and risk premium, Sustainability 4 2016 65 12 1 Environmental and Resource Economics 677 695 Q30 D9 D6 G1 http://link.springer.com/10.1007/s10640-015-9917-x text/html Abstract Johnson Kakeu kakeu_johnson@yahoo.fr justin.kakeu@morehouse.edu Morehouse College
oai:RePEc:kap:enreec:v:65:y:2016:i:4:d:10.1007_s10640-015-9923-z2020-08-19RePEc:kap:enreec
article Payments or Persuasion: Common Pool Resource Management with Price and Non-price Measures Abstract We use lab experiments to study policies that address common pool resource overuse. We look at a price mechanism, specifically a Pigouvian subsidy, and four non-price interventions. The non-price policies are information alone, information with a normative message, communication alone, and normative messages with communication allowed. In all experiment sessions, no intervention occurs in the first seven and last seven rounds, allowing us to examine the effects of introducing and taking away a policy. The subsidy leads to near-efficient extraction, but surprisingly leads groups that were not over-extracting to also reduce extraction. This over-compliance decreases efficiency, although on net the subsidy is the most efficiency-enhancing intervention. Information provision, communication, normative appeals, and normative appeals combined with communication all reduce over-extraction (though by less than the subsidy) without exacerbating over-compliance; however, the effects of information alone and communication alone are small and not robust. The non-price policies cause a decline in over-extraction of from 0.549 (information) to 11.441 % (normative appeals with communication). These effects are of the same order of magnitude as the effects seen in major field studies of conservation messaging. The subsidy has the worst persistence properties (after the intervention ceases), while normative messages with communication have the best. Common pool resource, Communication, Information, Pigouvian subsidy, Social norms, Voluntary cooperation, Laboratory experiment 4 2016 65 12 4 Environmental and Resource Economics 747 772 H41 H21 C91 C92 D62 D83 http://link.springer.com/10.1007/s10640-015-9923-z text/html Abstract Jason Delaney jdelaney@ggc.edu Georgia Gwinnett College Sarah Jacobson sarah.a.jacobson@williams.edu Williams College
oai:RePEc:kap:enreec:v:65:y:2016:i:4:d:10.1007_s10640-015-9927-82020-08-19RePEc:kap:enreec
article Physical and Economic Consequences of Sea-Level Rise: A Coupled GIS and CGE Analysis Under Uncertainties Abstract This paper develops a modelling framework that links GEMINI-E3, a multi-regional, multi-sectoral computable general equilibrium model with a cost-benefit analysis approach at local level using geographical information system tools to assess the physical and economic consequences of sea-level rise (SLR) in the twenty first century. A set of future scenarios is developed spanning the uncertainties related to global warming, the parameters of semi-empirical SLR estimates, and coastal developments (cropland, urban areas and population). The importance of incorporating uncertainties regarding coastal development is highlighted. The simulation results suggest that the potential development of future coastal areas is a greater source of uncertainty than the parameters of SLR itself in terms of the economic consequences of SLR. At global level, the economic impact of SLR could be significant when loss of productive land along with loss of capital and forced displacement of populations are considered. Furthermore, highly urbanised and densely populated coastal areas of South East Asia, Australia and New Zealand are likely to suffer significantly if no protective measures are taken. Hence, it is suggested that coastal areas needs to be protected to ameliorate the overall welfare cost across various regions. Climate change, Sea-level rise, GIS, Computable general equilibrium model, Coastal impacts, Uncertainty, Adaptation 4 2016 65 12 7 Environmental and Resource Economics 813 839 C68 D58 Q54 http://link.springer.com/10.1007/s10640-015-9927-8 text/html Abstract Santosh R. Joshi santosh.joshi@econ.umu.se Centre for Environmental and Resource Economics Umeå University Marc Vielle École Polytechnique Fédérale de Lausanne (EPFL), EPFL ENAC INTER REME Frédéric Babonneau École Polytechnique Fédérale de Lausanne (EPFL), EPFL ENAC INTER REME ORDECSYS SARL Neil R. Edwards Open University Philip B. Holden Open University
oai:RePEc:kap:enreec:v:65:y:2016:i:4:d:10.1007_s10640-015-9926-92020-08-19RePEc:kap:enreec
article Hypothetical Bias in Risk Preferences as a Driver of Hypothetical Bias in Willingness to Pay: Experimental Evidence Abstract This study provides new insight on the established issue of elicitation bias in hypothetical choice settings. In particular, using an experiment that elicits real and hypothetical willingness to pay for the protection of otters, we provide evidence that the observed bias is driven by those who are both uncertain about their value and exhibit hypothetical bias in risk attitudes. This finding provides a reason why calibration approaches based on follow-up certainty questions have proven useful, but also suggests a degree of caution in applying the approach. Our results favour combining uncertainty calibration with CVM-X in which hypothetical bias in risk attitudes is also taken account to correct for hypothetical bias in WTP. Contingent valuation method, Hypothetical bias, Risk attitudes, Laboratory experiment, CVM-X 4 2016 65 12 6 Environmental and Resource Economics 789 811 Q51 D81 C91 http://link.springer.com/10.1007/s10640-015-9926-9 text/html Abstract Jinkwon Lee jlee22@sogang.ac.kr Sogang University Uk Hwang Kyungpook National University
oai:RePEc:kap:enreec:v:65:y:2016:i:4:d:10.1007_s10640-015-9925-x2020-08-19RePEc:kap:enreec
article Community-Based Tradable Permits for Localized Pollution Abstract This paper considers the assignment of tradable permits—representing property rights of an environmental good—to community members who are harmed by pollution generated by firms. These community members can in turn sell permits to polluters according to their personal preferences. For a special case with a sole household, market transactions between the household and polluters achieve an efficient pollution level. However, for a group of households, the decentralized market solution fails to yield social efficiency because of competitive consumption of the environmental goods. We design a revenue-sharing mechanism akin to unitization, under which market transactions also achieve efficient resource allocation. Importantly, in some cases, efficiency can be achieved even when regulators are ignorant of the private valuation of the environmental good. Decentralization, Environmental policy, Externalities, Property rights, Unitization 4 2016 65 12 5 Environmental and Resource Economics 773 788 http://link.springer.com/10.1007/s10640-015-9925-x text/html Abstract Peifang Yang peifang@cup.edu.cn China University of Petroleum (Beijing) Daniel T. Kaffine daniel.kaffine@colorado.edu University of Colorado Boulder
oai:RePEc:kap:enreec:v:65:y:2016:i:4:d:10.1007_s10640-015-9916-y2020-08-19RePEc:kap:enreec
article Cap-and-Trade and Financial Constraints: Is Investment Independent of Permit Holdings? Abstract We study a new channel by which permit holdings in a cap-and-trade system can affect investment behavior. In the presence of financial constraints, permit holdings can matter through their effect on the firm’s internally available resources and indirectly affect investment. To test this relationship, we exploit the cross-sectional and temporal variation in permit holdings and the temporal variation in the price of permits in the US $$\hbox {SO}_2$$ SO 2 program. We find that capital expenditures are positively related to the market value of the permit holdings. This relationship is stronger for smaller firms and is robust to alternative explanations based on regulatory differences. Cap-and-trade, Electricity sector, Financial constraints, Investment, Permit allocation, Permit holdings, US $$\hbox {SO}_2$$ SO 2 program 4 2016 65 12 8 Environmental and Resource Economics 841 864 http://link.springer.com/10.1007/s10640-015-9916-y text/html Abstract Evangelina Dardati edardati@uahurtado.cl ILADES - Universidad Alberto Hurtado Julio Riutort julio.riutort@uai.cl Universidad Adolfo Ibáñez
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article Distributional Impacts of Carbon Pricing: A Meta-Analysis Abstract Understanding the distributional impacts of market-based climate policies is crucial to design economically efficient climate change mitigation policies that are socially acceptable and avoid adverse impacts on the poor. Empirical studies that examine the distributional impacts of carbon pricing and fossil fuel subsidy reforms in different countries arrive at ambiguous results. To systematically determine the sources of variation between these outcomes, we apply an ordered probit meta-analysis framework. Based on a comprehensive, systematic and transparent screening of the literature, our sample comprises 53 empirical studies containing 183 effects in 39 countries. Results indicate a significantly increased likelihood of progressive distributional outcomes for studies on lower income countries and transport sector policies. The same applies to study designs that consider indirect effects, demand-side adjustments of consumers or lifetime income proxies. Climate change mitigation, Distributional impacts, Environmental policies, Environmental taxes, Households, Inequality, Meta-analysis, Poverty, Redistribution 1 2021 78 1 1 Environmental and Resource Economics 1 42 http://link.springer.com/10.1007/s10640-020-00521-1 text/html Abstract Nils Ohlendorf ohlendorf@mcc-berlin.net Technische Universität Berlin Mercator Research Institute on Global Commons and Climate Change (MCC), EUREF Campus 19 Michael Jakob Mercator Research Institute on Global Commons and Climate Change (MCC), EUREF Campus 19 Jan Christoph Minx Mercator Research Institute on Global Commons and Climate Change (MCC), EUREF Campus 19 University of Leeds Carsten Schröder Deutsches Institut für Wirtschaftsforschung Freie Universität Berlin Jan Christoph Steckel Mercator Research Institute on Global Commons and Climate Change (MCC), EUREF Campus 19
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article Weather Fluctuations, Expectation Formation, and Short-Run Behavioral Responses to Climate Change Abstract One premise adopted in most previous studies is that weather fluctuations affect economic outcomes contemporaneously. Yet under certain circumstances, the impact of weather fluctuations in the current year can be carried over into the future. Using agricultural production as an example, we empirically investigate how past weather fluctuations affect economic decision-making by shifting agents’ subjective expectations over future climate. We find that agricultural producers do not form expectations on future climate using only long-run normals, and instead engage in a combination of heuristics, including the availability heuristic and the reinforcement strategy. Adopting these learning mechanisms causes farmers to significantly over-react to more recent fluctuations in weather and water availability when making ex ante acreage and crop allocation decisions. Weather fluctuation, Climate change adaptation, Expectation formation, Agricultural production 1 2021 78 1 3 Environmental and Resource Economics 77 119 Q54 Q15 Q25 http://link.springer.com/10.1007/s10640-020-00525-x text/html Abstract Xinde Ji xji@brandeis.edu Brandeis University Kelly M. Cobourn kellyc13@vt.edu Virginia Tech
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article The Welfare Impacts of Large Urban Noise Reductions: Implications from Household Sorting in Vienna Abstract We develop a pure characteristics equilibrium sorting model to recover estimates of willingness to pay (WTP) for both marginal and non-marginal changes in urban noise exposure. Using data from Vienna, Austria, we provide several new insights in the urban noise literature. First, we demonstrate the importance of considering general equilibrium feedback effects following large changes in noise levels. We document impacts to residents in policy targeted and non-targeted locations due to changes in both noise and equilibrium prices. Second, we confirm evidence of the importance of noise thresholds with significant and increasing negative impacts associated with increases in area covered by high levels of noise at 50 dB and 60 dB thresholds, respectively. Finally, we use an equilibrium sorting model to predict new price patterns and welfare implications following hypothetical policy changes that alter the distribution and intensity of nighttime noise in Vienna and are relevant to other urban settings seeking to reduce noise levels. Our work additionally provides a roadmap for conducting similar equilibrium sorting work in data limited settings outside the U.S. Urban noise, Sorting, General equilibrium, Vienna, Welfare 1 2021 78 1 4 Environmental and Resource Economics 121 146 Q51 Q58 H41 http://link.springer.com/10.1007/s10640-020-00527-9 text/html Abstract H. Allen Klaiber Klaiber.16@osu.edu The Ohio State University Ulrich B. Morawetz ulrich.morawetz@boku.ac.at University of Natural Resources and Life Sciences Vienna
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article Fisheries Optimal Harvest Under Price and Biomass Uncertainty Abstract This article develops and implements a stochastic optimal control approach to value renewable natural resources in the case of Marine Fisheries. The model includes two sources of uncertainty: the resource biomass and the price of fish, and it can be used by fisheries and regulators to optimally adapt their harvesting strategy to changing conditions in these stochastic variables. The model also features realistic operational cash flows. Using publicly available data on the British Columbia halibut fishery, the required parameters are estimated and the model is solved. The results indicate that price uncertainty is especially important in valuing fisheries and determining the optimal harvesting policy. Renewable resources and conservation, Fisheries rights valuation, Sustainable harvesting Q20, Q22, G10, G13, G31 1 2021 78 1 5 Environmental and Resource Economics 147 175 http://link.springer.com/10.1007/s10640-020-00528-8 text/html Abstract Jose Pizarro jose.pizarro@sauder.ubc.ca University of British Columbia Eduardo Schwartz Simon Fraser University
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article Porter Hypothesis vs Pollution Haven Hypothesis: Can There Be Environmental Policies Getting Two Eggs in One Basket? Abstract The Porter hypothesis and the pollution haven hypothesis seem to predict opposite reactions by firms facing environmental regulation, as the first invokes the arising of a win–win solution while the second envisages the possibility for firms to flee abroad. We illustrate the possibility of designing policies (taking the form of either emission taxation or environmental standards) able to eliminate firms’ incentives to relocate their plants abroad and create a parallel incentive for them to deliver a win–win solution by investing either in replacement technologies under emission taxation, or in abatement technologies under an environmental standard. This is worked out in a Cournot supergame in which firms may activate the highest level of collusion compatible with their intertemporal preferences. Implicit collusion, Win–win solution, Relocation, Green technology, Emission taxation, Environmental standard 1 2021 78 1 6 Environmental and Resource Economics 177 199 L13 L51 Q50 http://link.springer.com/10.1007/s10640-020-00533-x text/html Abstract Claudia Ranocchia claudia.ranoccchia@studio.unibo.it University of Bologna Luca Lambertini luca.lambertini@unibo.it University of Bologna
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article Extended Producer Responsibility and Green Marketing: An Application to Packaging Abstract Assuming a duopoly market where the producers use packaging recyclability to vertically differentiated their product, we analyse the efficiency of an extended producer responsibility (EPR) to deliver optimal choices of packaging. In this paper, the EPR means that the producers bear the social disposal cost of packaging waste resulting from households’ consumption of their product. Disposal of household packaging waste comprises sorting and treatment operations. Therefore, the social disposal cost is the sum of both the sorting and the dumping costs. We confirm that an EPR is not an optimal policy, and then we show that an optimal policy couples an EPR to two bonus/penalty systems: the first one reduces the sorting cost borne by the producers, the second one affects the dumping cost borne by the producers. This optimal policy entails that the producers bear a disposal cost higher (respectively lower) than the social disposal cost when improving packaging recyclability is cost-reducing (respectively costly). Bonus/penalty system, Duopoly, Dumping cost, Extended producer responsibility, Packaging, Sorting cost, Vertical differentiation 2 2017 67 6 4 Environmental and Resource Economics 285 296 http://link.springer.com/10.1007/s10640-015-9986-x text/html Abstract Brice Arnaud brice.arnaud@u-bordeaux4.fr Université de Bordeaux
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article Biodiversity and Optimal Multi-species Ecosystem Management Abstract We analyze optimal multi-species management in a dynamic bio-economic model taking into account both harvesting profit and biodiversity value. Within an analytical model, we show that extinction is never optimal when a global biodiversity value is taken into account. Moreover, a stronger preference for species diversity leads to a more even distribution of stock sizes in the optimal steady state, and a higher value of biodiversity increases steady state stock sizes for all species when species are ecologically independent or symbiotic. For a predator–prey ecosystem, the effects may be positive or negative depending on relative prices and the strength of species interaction. The analytical results are illustrated and extended using an age-structured three-species predator–prey model for the Baltic cod, sprat, and herring fisheries. In this quantitative application, we find that using stock biomass or stock numbers as abundance indicators in the biodiversity index may lead to opposite results. Biodiversity, Ecosystem management, Fishery, Ecological-economic modeling, Marine resources, Baltic sea 2 2017 67 6 6 Environmental and Resource Economics 321 350 Q22 Q57 http://link.springer.com/10.1007/s10640-015-9988-8 text/html Abstract Christine Bertram Christine.Bertram@ifw-kiel.de Kiel Institute for the World Economy Martin F. Quaas Quaas@economics.uni-kiel.de Kiel University
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article Optimal Management of Groundwater Under Uncertainty: A Unified Approach Abstract Discrete-time stochastic models of management of groundwater resources have been extensively used for understanding a number of issues in groundwater management. Most models used suffer from two drawbacks: relatively simplistic treatment of the cost of water extraction, and a lack of important structural results (such as monotonicity of extraction in stock and concavity of the value function), even in simple models. Lack of structural properties impede both practical policy simulation and clarity of understanding of the resulting models and the underlying economics. This paper provides a unifying framework for these models in two directions; first, the usual cost function is extended to encompass cases where marginal cost of pumping depends on the stock and second, the analysis dispenses with assumptions of concavity of the objective function and compactness of the state space, using instead lattice-theoretic methods. With these modifications, a comprehensive investigation of which structural properties can be proved in each of the resulting cases is carried out. It is shown that for some of the richer models more structural properties may be proved than for the simpler model used in the literature. This paper also introduces to the resource economics literature an important method of proving convergence to a stationary distribution which does not require monotonicity in stock of resource. This method is of interest in a variety of renewable resource model settings. Stationary distributions, Dynamic programming, Groundwater 2 2017 67 6 7 Environmental and Resource Economics 351 377 Q25 C61 C62 http://link.springer.com/10.1007/s10640-015-9989-7 text/html Abstract Chandra Kiran B. Krishnamurthy chandra.kiran@beijer.kva.se The Royal Swedish Academy of Sciences Umeå University
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article Resilience, Weather and Dynamic Adjustments in Agroecosystems: The Case of Wheat Yield in England Abstract The paper presents an investigation of agroecosystem dynamics with an application to wheat yield data in England over the period 1885–2012. The analysis relies on a Threshold Quantile Autoregressive model. The model allows for lag effects to vary across quantiles of the distribution as well as with the values taken by the lagged variables. The analysis documents the dynamics and persistence of yield adjustments to shocks. The estimates indicate the presence of dynamic instability in the lower quantile of the distribution. The analysis shows that, after controlling for the role of technological trend, wheat yield exhibits resilience to adverse weather shocks. Agroecosystem dynamics, Resilience, Yield, Quantile regression, Threshold 2 2017 67 6 5 Environmental and Resource Economics 297 320 Q1 C14 C22 C51 http://link.springer.com/10.1007/s10640-015-9987-9 text/html Abstract Jean-Paul Chavas jchavas@wisc.edu University of Wisconsin Salvatore Falco salvatore.difalco@unige.ch University of Geneva
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article Unilateral Climate Policy and Foreign Direct Investment with Firm and Country Heterogeneity Abstract We analyse the effects of unilateral climate policy in a two-country two-firm model, with endogenous plant location and heterogeneity in both country size and firm’s characteristics. The effectiveness of unilateral climate policy is shown to depend on the joint effect of country and firm heterogeneity, and on their impact on equilibrium location choice. For being effective and not leading to production relocation in the long-run, unilateral climate policy should be moderate, implemented by a sufficiently larger area and complemented by mechanisms promoting the international transfer of clean technologies. The model indicates that the smaller area cannot take the lead in global climate mitigation for a protracted time period. Finally, when the local community is not environmentally concerned, the unilateral policy unambiguously makes the society worse off. Foreign direct investment, Carbon leakage, Climate policy, Plant location, Emissions technologies 2 2017 67 6 8 Environmental and Resource Economics 379 401 http://link.springer.com/10.1007/s10640-015-9990-1 text/html Abstract Francesca Sanna-Randaccio fsr@dis.uniroma1.it Sapienza University of Rome Roberta Sestini sestini@dis.uniroma1.it Sapienza University of Rome Ornella Tarola ornella.tarola@uniroma1.it Sapienza University of Rome
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article An Adjustment Restriction on Fish Quota: Resource Rents, Overcapacity and Recovery of Fish Stock Abstract Management objectives of the European Union for North Sea fish stocks are shifting towards considering both biological sustainability and economic benefits. As part of multiannual management plans, an adjustment restriction on fish quota has been introduced. Its objective is to obtain an efficient fish stock and to reduce overcapacity for the fishing industry. We develop and apply a bi-level stochastic dynamic programming model to study the effect of a quota adjustment restriction on the net present value of resource rents, overcapacity and fish stock, when the system is recovering from a downward environmental shock. At level one, a policy maker sets the quota, considering fishermen behavior, stochastic fish stock dynamics, capital stock dynamics and a quota adjustment restriction. At level two, fishermen harvest myopically and make long-term investment decisions, assuming that fish stock and quota do not change over time. The two levels are linked by the quota, which is optimized by the policy maker at level one and becomes a restriction for myopic harvest and long-term investment decisions of fishermen at level two. Our analysis suggests that in the long run, overcapacity can be reduced by 54 % at modest costs, namely at a 1 % reduction in the net present value of resource rents. Long and short run sustainability of the fish stock is not affected. Fisheries management, Quota adjustment restriction, Investment behavior, Stochastic dynamic programming 2 2017 67 6 1 Environmental and Resource Economics 203 230 http://link.springer.com/10.1007/s10640-015-9983-0 text/html Abstract Diana Dijk Diana.vandijk@eawag.ch Swiss Federal Institute of Aquatic Science and Technology Wageningen University Eligius M. T. Hendrix Eligius.hendrix@wur.nl Universidad de Málaga Rene Haijema Rene.haijema@wur.nl Wageningen University Rolf A. Groeneveld Rolf.groeneveld@wur.nl Wageningen University Ekko C. Ierland Ekko.vanierland@wur.nl Wageningen University
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article The Economic and Budgetary Impact of Climate Policy in Portugal: Carbon Taxation in a Dynamic General Equilibrium Model with Endogenous Public Sector Behavior Abstract The objective of this paper is to study $$\hbox {CO}_{2}$$ CO 2 taxation in its dual role as a climate and fiscal policy instrument using a dynamic general equilibrium model of the Portuguese economy which highlights the mechanisms of endogenous growth and incorporates a detailed modeling of public sector behavior and accounts. In addition to the conventional marginal abatement cost curve, we present a pair of complementary marginal abatement cost curves which highlight the impact $$\hbox {CO}_{2}$$ CO 2 taxation has on economic performance and public debt and are therefore directly relevant to the terms of the policy debate. These marginal abatement cost curves provide an effective tool for understanding the rate at which the environmental effectiveness, economic costs, and budgetary effects change with the tax level. Our results indicate that $$\hbox {CO}_{2}$$ CO 2 taxes can be an important policy instrument for reducing emissions and promoting fiscal consolidation, although this will come at a cost in terms of economic performance. Simulation results suggest that a tax of 17.00 Euros per $$\hbox {tCO}_{2}$$ tCO 2 can satisfy existing climate policy targets. The tax revenue effects, together with reductions in public spending, yield a 4.8 % reduction in public debt. These desirable outcomes come at the cost of a 1.3 % reduction in GDP over the long term. Our analysis highlights that limiting public consumption expenditures can contribute to larger reductions in public debt, albeit at a marginally greater cost to economic activity. In turn, reducing public investment, although effective in reducing public debt, produces a much larger negative economic impact. This evokes an important trade-off, particularly pronounced in the present debates regarding austerity measures in the EU, between fiscal consolidation efforts and efforts to promote convergence to EU standards of living. These results further highlight that modeling assumptions with respect to public spending decision are not innocuous. An exogenous trajectory for public spending suggests substantially smaller GDP effects and substantially larger public debt effects for any given emissions target. Marginal abatement costs, Carbon taxation, Endogenous growth, Dynamic general equilibrium 2 2017 67 6 2 Environmental and Resource Economics 231 259 Q41 Q43 Q54 Q58 C68 D58 H20 H50 H60 http://link.springer.com/10.1007/s10640-015-9984-z text/html Abstract Rui M. Pereira rmpereira@wm.edu College of William and Mary Alfredo M. Pereira ampere@wm.edu College of William and Mary
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article The Impact of Exogenous Pollution on Green Innovation Abstract Does environmental quality affect firms’ activities that might improve that quality? In this paper, we use China's public heating policy as a quasi-experiment to investigate the impact of exogenous pollution differences on green innovation behavior. We use a regression discontinuity model, and carry out a suite of robustness tests. We consistently find that firms located in cities with an exogenous source of heavy pollution tend to adopt green innovation at a lower rate while we find no difference in the rate at which they adopt non-green innovation. We find a strong causal effect: being north of the boundary, where pollution levels are higher, leads firms to adopt less green innovation. Firms located in the heating areas report roughly 1 less green innovation per billion RMB of assets, a substantial difference given the average number of green innovations per billion RMB of assets of northern firms is 0.641. China, Green innovation, Pollution, Quasi-experiment, Regression discontinuity 1 2022 81 1 1 Environmental and Resource Economics 1 24 http://link.springer.com/10.1007/s10640-021-00614-5 text/html Abstract Ying Wang Faust1987@tamu.edu Texas A&M University Richard T. Woodward r-woodward@tamu.edu Texas A&M University Jing-Yue Liu kerryla@foxmail.com Hunan University
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article Risk-Taking and Air Pollution: Evidence from Chess Abstract Medical research suggests that particulate matter (PM) increases stress hormones, therefore increasing the feeling of stress, which has been hypothesised to induce individuals to take less risk. To examine this, we study whether $$\hbox {PM}_{{10}}$$ PM 10 increases the probability of drawing in chess games using information from the Dutch club competition. We provide evidence of a reasonably strong effect: A $$10\mu \hbox {g}$$ 10 μ g increase in $$\hbox {PM}_{{10}}$$ PM 10 (33.6% of mean concentration) leads to a 5.6% increase in draws. We examine a range of explanations for these findings. Our preferred interpretation is that air pollution causes individuals to take less risk. Air pollution, Particulate matter, Decision-making, Risk-taking 1 2022 81 1 4 Environmental and Resource Economics 73 93 D81 I18 J24 Q53 http://link.springer.com/10.1007/s10640-021-00618-1 text/html Abstract Joris Klingen j.j.klingen@vu.nl Vrije Universiteit Amsterdam Tinbergen Institute Amsterdam Jos Ommeren jos.van.ommeren@vu.nl Vrije Universiteit Amsterdam Tinbergen Institute Amsterdam
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article How Does Green Investment Affect Environmental Pollution? Evidence from China Abstract China is currently undergoing an important stage wherein it is adjusting its development mode and upgrading its industrial structure. Green investment has become a major driving force through which China can achieve green and sustainable development. Based on the panel data of 30 Chinese provinces for the 2006–2017 period, this paper uses a spatial Durbin model and a dynamic threshold model to empirically analyze the impact of green investment and institutional quality on environmental pollution. The research results show that China’s environmental pollution is significantly characterized by spatial dependence. Local environmental pollution is negatively impacted by green investment, but it is not affected by green investment in neighboring areas; this conclusion remains valid after a series of robustness tests. Green investment can reduce environmental pollution by improving efficiency of energy conservation and emission reduction, expanding technological innovation capabilities and upgrading the industrial structure. The regression results of the dynamic threshold model show that green investment has a nonlinear impact on environmental pollution that is dependent on institutional quality. A higher degree of regional corruption can lead to a gradual decrease in the role of green investment in reducing environmental pollution. However, improvements in marketization and intellectual property protection can increase the positive influence of green investment in reducing environmental pollution. Significant regional heterogeneity is also found in the impact of green investment on environmental pollution, and this impact gradually decreases from the eastern coast to the western region. Green investment, Environmental pollution, Institutional quality, Spatial Durbin model 1 2022 81 1 2 Environmental and Resource Economics 25 51 http://link.springer.com/10.1007/s10640-021-00615-4 text/html Abstract Siyu Ren rensiyuking@126.com Nankai University Yu Hao haoyuking@gmail.com haoyuking@bit.edu.cn Beijing Institute of Technology Beijing Institute of Technology Sustainable Development Research Institute for Economy and Society of Beijing Yangtze Delta Region Academy of Beijing Institute of Technology Beijing Key Lab of Energy Economics and Environmental Management Haitao Wu haitao.kungfuer@gmail.com Beijing Institute of Technology Beijing Institute of Technology
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article Firm Liability When Third Parties and Consumers Incur Cumulative Harm Abstract This paper analyzes liability rules when consumers and third parties/the environment incur harm. Expected harm is convex in the level of output and modeled as a power function. We show that the social ranking of liability rules previously established for the case in which only consumers suffer harm (Strict Liability dominates No Liability and Negligence) may be reversed if harm to third parties or the environment is sufficiently important. Liability, Cumulative harm, Environmental harm 1 2022 81 1 3 Environmental and Resource Economics 53 71 K13 Q50 http://link.springer.com/10.1007/s10640-021-00617-2 text/html Abstract Tim Friehe tim.friehe@uni-marburg.de University of Marburg Eric Langlais eric.langlais@parisnanterre.fr EconomiX UMR 7235 CNRS and Paris Nanterre Elisabeth Schulte elisabeth.schulte@uni-marburg.de University of Marburg
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article Income, Policy, and Pollution Abstract This paper identifies the roles of an environmental protection policy and income growth in enhancing environmental quality in China. In 2005, the Central Government of China piloted a policy that linked regional environmental quality to the performance assessment of local government officials in some provinces. After the implementation of the policy, pollution levels reduced substantially. However, many researchers believe that the improvement of China’s environmental quality might have been due to an increase in per capita income, i.e., there is the presence of an “environmental Kuznets curve.” We use a nonparametric IV model and a synthetic control method to identify the role of income and policy in improving environmental quality. Results show that after controlling for the mutual effects of the two factors, income level had an inverted U-shaped relationship with sulfur dioxide and wastewater emissions. There are differences in the effects of policies on pollution reduction among different cities, and the magnitude is affected by regional economic development. Our findings contribute to the understanding of the effects of income and policy on pollution reduction. Environmental pollution, Environmental protection policy, Environmental Kuznets curve 1 2022 81 1 6 Environmental and Resource Economics 131 153 C14 C21 I18 O44 Q53 http://link.springer.com/10.1007/s10640-021-00621-6 text/html Abstract Hongtao Hu South China Agricultural University Krishna P. Paudel kpaudel@agcenter.lsu.edu Louisiana State University (LSU) and LSU Agricultural Center Ying Tan South China Agricultural University
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article A New Strategy for Benefits Transfer Abstract This paper calls for re-focusing the analysis of existing results to evaluate whether there are stable ratios of use value to total willingness to pay for improvements in different types of environmental resources. The objective is to develop a screening tool to determine if decisions about the assumed number of users versus nonusers of a resource are likely to be important to aggregate benefit measures for changes in the amount or quality of different environmental resources. Four sets of applications involving different aspects of water resources are considered: nutrients in the Neuse River affecting the Albemarle-Pamlico Estuary; nutrients in the Chesapeake Bay; whitewater rafting on the Colorado River; and the Deepwater Oil Spill in the Gulf of Mexico. The findings suggest a need to add the evaluation of these ratios to the research agenda in benefits transfer. Benefits transfer, Use value, Non-use value 1 2022 81 1 7 Environmental and Resource Economics 155 178 http://link.springer.com/10.1007/s10640-021-00623-4 text/html Abstract V Kerry Smith kerry.smith@cavecreekinstitute.com Arizona State University W. Douglass Shaw Texas A&M University Michael P. Welsh Private Consultant Chris Dixon Abt Associates Lisa Donald Abt Associates
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article Valuing Nonmarket Impacts of Climate Change on Recreation: From Reduced Form to Welfare Abstract Nonmarket damages are largely missing from aggregate climate impact estimates, especially those related to outdoor recreation. One simple approach to measuring these missing impacts is to estimate dose-response functions to weather, and then to combine these functions with benefits transfer approaches to value the gained or lost recreational opportunities. In this paper, we analyze the potential and shortcomings of such an approach. Although seemingly simplistic, we show that this approach has attractive theoretical properties and can provide exact or conservative estimates of surplus changes under standard assumptions that are commonly used in the valuation literature. We assess the accuracy of this approximation in the context of several prior studies of environmental quality changes, and we also use this framework to generate illustrative climate impacts for outdoor recreation using nationally representative time-use data. Nonmarket valuation, Climate change, Time allocation, Leisure demand J22, Q51, Q54 1 2022 81 1 8 Environmental and Resource Economics 179 213 http://link.springer.com/10.1007/s10640-021-00624-3 text/html Abstract Nathan W. Chan nchan@umass.edu University of Massachusetts Amherst Casey J. Wichman wichman@gatech.edu Georgia Institute of Technology
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article The Welfare Effects of Index-Based Livestock Insurance: Livestock Herding on Communal Lands Abstract Agricultural (index) insurance for smallholders in developing countries has gained traction in academic and policy circles. The expectation is that the uptake of insurance will protect smallholders from production shocks and incentivize them to modernize production. We develop a simple theoretical model to demonstrate that the welfare effects of insurance are fundamentally ambiguous—even in the absence of transaction costs or basis risk. The second-best nature of the institutional context within which smallholders operate implies that the uptake of insurance may accentuate pre-existing inefficiencies. This idea is worked out in detail for the case of livestock herding on common grazing lands. Our theoretical model predicts that insurance invites overstocking of communal lands, and lowers the profitability of herding when common pastures are degraded. Index insurance, Second-best analysis, Property rights, Overgrazing, Livestock G22, O13, O16, Q12 4 2021 78 4 3 Environmental and Resource Economics 587 613 http://link.springer.com/10.1007/s10640-021-00545-1 text/html Abstract Erwin Bulte Erwin.bulte@wur.nl Wageningen University Rein Haagsma Rein.haagsma@wur.nl Wageningen University
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article Unraveling the Effects of Tropical Cyclones on Economic Sectors Worldwide: Direct and Indirect Impacts Abstract This paper examines the current, lagged, and indirect effects of tropical cyclones on annual sectoral growth worldwide. The main explanatory variable is a new damage measure for local tropical cyclone intensity based on meteorological data weighted for individual sectoral exposure, which is included in a panel analysis for a maximum of 205 countries over the 1970–2015 period. I find a significantly negative influence of tropical cyclones on two sector aggregates including agriculture, as well as trade and tourism. In subsequent years, tropical cyclones negatively affect the majority of all sectors. However, the Input–Output analysis shows that production processes are sticky and indirect economic effects are limited. Natural disasters, Climate impact analysis, Sectoral GDP growth, Tropical cyclones, Input–output analysis 4 2021 78 4 1 Environmental and Resource Economics 545 569 Q54 Q56 O44 O11 http://link.springer.com/10.1007/s10640-021-00541-5 text/html Abstract Sven Kunze sven.kunze@awi.uni-heidelberg.de Heidelberg University
oai:RePEc:kap:enreec:v:78:y:2021:i:4:d:10.1007_s10640-021-00548-y2021-03-27RePEc:kap:enreec
article Trade in Carbon and Carbon Tariffs Abstract Carbon-based import tariffs are proposed as a policy measure to reduce carbon leakage and increase the global cost-effectiveness of unilateral CO2 emission pricing. We investigate the case for carbon tariffs. For our assessment, we combine multi-region input–output and computable general equilibrium analyses based on data from the World Input–Output Database for the period 2000–2014. The multi-region input–output analysis confirms that carbon embodied in trade has increased during this period, but trade flows from Non-OECD to OECD countries became less important in relative terms since the 2007–2008 financial crisis. The computable general equilibrium analysis suggests that carbon tariffs’ efficacy in combating leakage increases in periods when trade in carbon increases. However, its potential to improve the global-cost effectiveness of unilateral emission pricing remains modest. On the other hand, we find that the potential of carbon tariffs to shift the economic burden of CO2 emission reduction from abating developed regions to non-abating developing regions increases sharply between 2000 and 2007, but declines after the financial crisis. Embodied carbon, Carbon tariffs, Unilateral climate policy, Computable general equilibrium 4 2021 78 4 6 Environmental and Resource Economics 669 708 D57 D58 Q58 http://link.springer.com/10.1007/s10640-021-00548-y text/html Abstract Christoph Böhringer boehringer@uol.de University of Oldenburg Jan Schneider jan.schneider@uol.de University of Oldenburg Emmanuel Asane-Otoo asane.otoo@uol.de University of Oldenburg
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article Social Cost of Carbon Under Stochastic Tipping Points Abstract Is climate change concerning because of its expected damages, or because of the risk that damages could be very high? Climate damages are uncertain, in particular they depend on whether the accumulation of greenhouse gas emissions will trigger a tipping point. In this article, we investigate how much risk contributes to the Social Cost of Carbon in the presence of a tipping point inducing a higher-damage regime. To do so, we decompose the effect of a tipping point as an increase in expected damages plus a zero-mean risk on damages. First, using a simple analytical model, we show that the social cost of carbon (SCC) is primarily driven by expected damages, while the effect of pure risk is only of second order. Second, in a numerical experiment using a stochastic Integrated Assessment Model, we show that expected damages account for most of the SCC when the tipping point induces a productivity shock lower than 10%, the high end of the range commonly used in the literature. It takes both a large productivity shock and high risk aversion for pure risk to significantly contribute to the SCC. Our analysis suggests that the risk aversion puzzle, which is the usual finding that risk aversion has a surprisingly little effect on the SCC, occurs since the SCC is well estimated using expected damages only. However, we show that the risk aversion puzzle does not hold for large productivity shocks, as pure risk greatly contributes to the SCC in these cases. Climate change, Tipping points, Expected utility, Integrated Assessment Models, Risk, Social Cost of Carbon 4 2021 78 4 7 Environmental and Resource Economics 709 737 http://link.springer.com/10.1007/s10640-021-00549-x text/html Abstract Nicolas Taconet taconet@centre-cired.fr CIRED Céline Guivarch CIRED Antonin Pottier CIRED
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article Adapting to Rising Sea Levels: How Short-Term Responses Complement Long-Term Investment Abstract This paper presents a parsimonious model of a coastal locality’s adaptation to rising sea levels and uses the model to examine cost-minimizing policies involving two complementary approaches. One involves irreversible investment in sea walls and similar infrastructure. The other involves activities, such as beach scraping, that only provide temporary protection. Costs are minimized by delaying investment until the present value of the benefits from avoided inundation costs exceeds upfront investment costs by a margin that is economically significant. The premium, which can exceed 50% of investment costs, is higher when the sea level is rising more quickly. The ability to temporarily boost defenses is used aggressively: spending on temporary improvements immediately before investment is several times larger than its value immediately afterwards. Temporary improvements are made even when the marginal cost of increasing the effectiveness of defenses this way is significantly greater than the equivalent annual cost of permanently increasing effectiveness by investment. Climate change, Adaptation, Cost–benefit analysis, Real options analysis 4 2021 78 4 5 Environmental and Resource Economics 635 668 G31 Q54 R42 http://link.springer.com/10.1007/s10640-021-00547-z text/html Abstract G. Guthrie graeme.guthrie@vuw.ac.nz Victoria University of Wellington
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article WTP or WTA: A Means of Determining the Appropriate Welfare Measure of Positive and Negative Changes When Preferences are Reference Dependent Abstract Many positive and negative changes are valued by people relative to a neutral reference state, which may, or often may not, be the status quo. Positive changes can then be either gains and the monetary value of the increase in welfare best assessed with the WTP measure, or reductions of losses, and like losses, the change in welfare more accurately assessed with the WTA measure. A means to discriminate between gains and reductions of losses is presented here, along with the results of tests of its efficacy, and a demonstration of its application to VSL estimates–with findings suggesting likely widespread biases of present practice of using WTP to assess the value of essentially all changes. Welfare measures, Reference dependence, Willingness-to-pay, Willingness-to-accept, Endowment effect 4 2021 78 4 4 Environmental and Resource Economics 615 633 D61 D90 H40 Q51 http://link.springer.com/10.1007/s10640-021-00546-0 text/html Abstract Kiet T. Nguyen ntkiet@ctu.edu.vn Can Tho University Jack L. Knetsch jack_knetsch@sfu.ca Simon Fraser University Phumsith Mahasuweerachai mchit@kku.ac.th phumosu@gmail.com Khon Kaen University
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article An allocatively efficient auction for pollution permits Abstract This article proposes a new auction design for the efficient allocation of pollution permits. We show that if the auctioneer restricts the bidding rule of the uniform-price auction—coupled with a simple ex-post supply adjustment rule—then truthful bidding is obtained. Consequently, the uniform-price auction is more allocatively efficient than conventional formats that are currently observed in pollution markets. Auctions, Multi-unit, Uniform-price, Efficiency, Pollution 4 2021 78 4 2 Environmental and Resource Economics 571 585 D44 D82 L10 Q50 http://link.springer.com/10.1007/s10640-021-00543-3 text/html Abstract Peyman Khezr Finance and Marketing, RMIT University Ian A. MacKenzie i.mackenzie@uq.edu.au University of Queensland
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article Estimating Willingness to Pay from Count Data When Survey Responses are Rounded Abstract Recall data of visits to recreational sites often contain reported numbers that appear to be rounded to nearby focal points (e.g., the closest 5 or 10). Failure to address this rounding has been shown to produce biased estimates of marginal effects and non-linear combinations of coefficients such as willingness to pay. We investigate the relative performance of three count data models used with data of the kind typically found in survey data. We create a dataset based on observed recreational trip counts and associated trip costs that exhibits substantial rounding. We then conduct a Monte Carlo simulation exercise to compare the estimated parameters, willingness to pay, and the average consumer surplus per trip for three alternative estimators: a standard Poisson model with no adjustment for rounding, a censored Poisson model, a grouped Poisson model, and a latent class Poisson model with rounding and non-rounding classes. The standard Poisson model with no adjustment for rounding exhibits significant and persistent bias, especially in estimates of non-linear effects. The grouped and latent class Poisson models, in contrast, show little to no bias in estimates. Coarsened data, Count data, Heaped data, Poisson, Recreation demand, Rounding 3 2020 75 3 10 Environmental and Resource Economics 657 675 C25 Q26 http://link.springer.com/10.1007/s10640-020-00403-6 text/html Abstract Ian B. Page ibpage@umd.edu University of Maryland Erik Lichtenberg elichten@umd.edu University of Maryland Monica Saavoss monica.saavoss@usda.gov United States Department of Agriculture
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article On the Effects of Linking Cap-and-Trade Systems for $$\hbox {CO}_{2}$$CO2 Emissions Abstract Linkage of national cap-and-trade systems is typically advocated by economists on a general analogy with the beneficial linkage of free-trade areas and on the specific grounds that linkage will ensure cost effectiveness among the linked jurisdictions. The paper analyses the less obvious effects of linkage with the bottom–up approach of the Paris Agreement where each country sets its nationally determined contribution for its own carbon dioxide ($$\hbox {CO}_{2}$$CO2) emissions. An appropriate and widely accepted specification for the damages of $$\hbox {CO}_{2}$$CO2 emissions within a relatively short (say 5–10 year) period is that marginal damages for each jurisdiction are constant (although they can differ among jurisdictions). With this defensible assumption, the analysis is significantly clarified and yields simple closed-form expressions for all $$\hbox {CO}_{2}$$CO2 permit prices. Some implications for linked and unlinked voluntary $$\hbox {CO}_{2}$$CO2 cap-and-trade systems are derived and discussed. A numerical example illustrates the results. Cap and trade, Climate change, Linkage, Paris agreement, Pollution 3 2020 75 3 8 Environmental and Resource Economics 615 630 http://link.springer.com/10.1007/s10640-020-00401-8 text/html Abstract Bjart Holtsmark bjart.holtsmark@ssb.no Statistics Norway Martin L. Weitzman mweitzman@harvard.edu Harvard University
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article A Cap-and-Trade Commitment Policy with Allowance Banking Abstract We examine the planner’s dynamic regulation problem in an emission trading system (ETS) with allowance banking. The planner sets the emissions cap for the next period after the current period allowance market has cleared, but before knowing the next period’s abatement cost realization. This creates a time consistency problem when banking is possible. We examine two policies to overcome the consistency problem: a commitment solution and the Markov perfect solution. We show that the endogenous price floor generated by the banking demand becomes an integral feature of the two policies. Hence, they can be best described as hybrid policies that combine elements from emissions taxes and tradable allowances. This reveals new welfare implications that have an influence on instrument choice in the traditional prices versus quantities setup. We compare the expected welfare outcomes of four different policy instruments: the commitment policy, the Markov policy, a Pigouvian tax, and a no-banking ETS. We show that allowing banking can yield welfare gains compared to tax and quantity regulation, with or without commitment. Prices versus quantities, Dynamic consistency, Markov perfect solution, Price quantity hybrid, Rational expectations, Emissions tax 3 2020 75 3 2 Environmental and Resource Economics 421 455 E32 Q54 Q58 http://link.springer.com/10.1007/s10640-019-00395-y text/html Abstract Olli-Pekka Kuusela olli-pekka.kuusela@oregonstate.edu Oregon State University Jussi Lintunen jussi.lintunen@luke.fi Natural Resources Institute Finland (Luke)
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article Adaptation for Mitigation Abstract This paper develops a two-region (North and South) dynamic model in which regional stocks of effective labor are negatively influenced by the global stock of pollution. By characterizing the equilibrium strategy of each region we show that the regions’ best responses can be strategic complements through a dynamic complementarity effect. The model is then used to analyze the impact of adaptation assistance from North to South. It is shown that North’s unilateral assistance to South (thus enhancing South’s adaptation capacity) can facilitate pollution mitigation in both regions, especially when the assistance is targeted at labor protection. Pollution might increase in the short run, but in the long run the level of pollution will decline. The adaptation assistance we propose is incentive compatible and Pareto improving. Adaptation, Climate change, Dynamic game, Mitigation, Strategic complements 3 2020 75 3 3 Environmental and Resource Economics 457 484 H23 O44 Q54 Q58 http://link.springer.com/10.1007/s10640-019-00396-x text/html Abstract Hiroaki Sakamoto hsakamoto@chiba-u.jp Chiba University Masako Ikefuji University of Tsukuba Osaka University Jan R. Magnus Vrije Universiteit Amsterdam
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article Is Aggregate Domestic Consumption Spending (ADCS) Per Capita Determining CO2 Emissions in South Africa? A New Perspective Abstract Aggregate domestic consumption spending is one of the prime drivers of economic progress that facilitates the process of industrialization, international trade, and innovation, but its effect on the environment remains underresearched. This paper proposes a novel framework to explain the impact of aggregate domestic consumption spending per capita (ADCSP) on carbon dioxide emissions (CO2e) in South Africa. Using the autoregressive distributed lag (ARDL) technique, the results indicated that the ADCSP determines CO2e in the short-run (SR) and long-run (LR). From ADCSP to carbon intensity (ADCSP-CI) estimations, it was observed that an increase (1%) in ADCSP increases CO2e in both the LR (0.31%) and SR (0.22%). Furthermore, the NARDL estimations showed that the LR effects of positive shocks in the ADCSP on CO2e are comparatively stronger than the SR effects. The paper offers important policy implications for academics, theorists, and policymakers. CO2 emissions, Aggregate domestic consumption spending (ADCS) per capita, Aggregate domestic consumption to carbon intensity (ADCSP-CI), ARDL, NARDL 3 2020 75 3 5 Environmental and Resource Economics 529 552 http://link.springer.com/10.1007/s10640-019-00398-9 text/html Abstract Manzoor Ahmad Nanjing University Abdul Wali Khan University Mardan Shoukat Iqbal Khattak 201961000012@jmu.edu.cn Jimei University
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article Seasonal Harvest Patterns in Multispecies Fisheries Abstract Fishers face multidimensional decisions: when to fish, what species to target, and how much gear to deploy. Most bioeconomic models assume single-species fisheries with perfectly elastic demand and focus on inter-seasonal dynamics. In real-world fisheries, vessels hold quotas for multiple species with heterogeneous biological and/or market conditions that vary intra-seasonally. We analyze within-season behavior in multispecies fisheries with individual fishing quotas, accounting for stock aggregations, capacity constraints, and downward-sloping demand. Numerical results demonstrate variation in harvest patterns. We specifically find: (1) harvests for species with downward-sloping demand tend to spread out; (2) spreading harvest of a high-value species can cause lower-value species to be harvested earlier in the season; and (3) harvest can be unresponsive or even respond negatively to biological aggregation when fishers balance incentives in multispecies settings. We test these using panel data from the Norwegian multispecies groundfish fishery and find evidence for all three. We extend the numerical model to account for transitions to management with individual fishing quotas in multispecies fisheries. We show that, under some circumstances, fishing seasons could contract or spread out. Multispecies fishery, Multi-fishery, Sequential fishery, Fishing behavior, Seasonal harvest, Catch shares, Seafood demand 3 2020 75 3 9 Environmental and Resource Economics 631 655 Q22 http://link.springer.com/10.1007/s10640-020-00402-7 text/html Abstract Anna M. Birkenbach abirken@udel.edu University of Delaware University of Delaware Andreea L. Cojocaru University of Stavanger Business School Frank Asche University of Florida University of Stavanger Atle G. Guttormsen Norwegian University of Life Sciences, NMBU Martin D. Smith Duke University Duke University
oai:RePEc:kap:enreec:v:75:y:2020:i:3:d:10.1007_s10640-019-00397-w2020-02-26RePEc:kap:enreec
article Is Mining an Environmental Disamenity? Evidence from Resource Extraction Site Openings Abstract Extractive industries are often challenged by nearby communities due to their environmental and social impacts. If proximity to resource extraction sites represents a disamenity to households, the opening of new mines should lead to a decrease in housing prices. Using evidence from more than 6000 new extraction sites in Chile, this study addresses whether the heavy environmental and social impacts of digging activities outweigh their local economic benefits to the housing market in emerging economies. Findings from a spatial difference-in-difference nearest-neighbor matching estimator reveal that households near mining activity get compensated with lower rental prices, mostly in places with high perceptions of exposure to environmental pollution. Further analysis suggests that this compensation is lower among new residents of mining towns, which constitutes evidence of a taste-based sorting across space. Results in this study bring to light the need of incorporating welfare effects of potential social and environmental disruptions in future studies addressing the economic impact of new mining operations. Extractive industries, Mining, Environmental valuation, Environmental disamenities, Hedonic models, Nearest-neighbor matching estimator 3 2020 75 3 4 Environmental and Resource Economics 485 528 Q53 Q51 Q32 Q34 http://link.springer.com/10.1007/s10640-019-00397-w text/html Abstract Nathaly M. Rivera nmrivera@alaska.edu University of Alaska Anchorage
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article Team Inspection in the Management of Common-Pool Resources When Corruption is Present Abstract Corrupt enforcement of harvesting restrictions hampers the management of common-pool resources in many developing countries, contributing in particular to widespread illegal fishing and logging. In this paper, we examine a simple intervention that may mitigate the effects of such corruption if, as is often the case due to congestion, stock, or pecuniary externalities, harvesters’ effort levels are strategic substitutes (i.e., greater effort by one harvester reduces the payoff to effort by other harvesters). We show that in this case, rather than sending out inspectors individually to each inspect a small subset of harvesters, sending them out as teams, whereby each team inspects a larger subset of harvesters, may be welfare enhancing. More specifically, we show that inspectors working in teams internalize more of the negative effort externalities between harvesters, and as a result choose to inspect more intensively, which ultimately reduces excessive harvest levels. Numerical simulations calibrated to data on fisheries indicate that the resulting welfare improvement can be significant. Common-pool resources, Illegal fishing, Illegal logging, Corruption, Enforcement, Inspections 3 2020 75 3 6 Environmental and Resource Economics 553 584 http://link.springer.com/10.1007/s10640-019-00399-8 text/html Abstract Chenyang Xu cxu@uwindsor.ca University of Windsor Klaas van’t Veld University of Wyoming
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article Monetary Policy, Natural Resources, and Federal Redistribution Abstract Can monetary policy shocks induce redistribution across natural resource rich and poor states within a federation? We conjecture that resource-rich states are capital intensive, hence their investment is more responsive to changes in monetary policy. Consequently, contractionary monetary policy shocks (e.g., increases in the interest rate) may induce redistribution from resource-poor states to resource-rich ones, via an equalizing federal transfer scheme, because investment is reduced more strongly in the latter. We test these hypotheses using a panel of U.S. states covering several decades, and find that: (1) resource-rich states are significantly and persistently more capital intensive; (2) contractionary monetary policy shocks induce a relative drop (increase) in investment (federal transfers) in resource-rich states, over the course of four years; (3) these patterns are driven by resource-induced differences in the capital share in the economy. We estimate that a one standard deviation contractionary monetary shock induces, within the first year, federal redistribution of approximately $$\$2.5$$$2.5 billion from the resource-poor to the resource-rich states, representing about $$11\%$$11% of the total average annual federal transfers received by the latter states. Monetary shocks, Natural resource abundance, Redistribution, Capital share 3 2020 75 3 7 Environmental and Resource Economics 585 613 E52 Q32 H77 http://link.springer.com/10.1007/s10640-020-00400-9 text/html Abstract Ohad Raveh ohad.raveh@mail.huji.ac.il Hebrew University of Jerusalem
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article Valuing Ecosystem Services and Downstream Water Quality Improvement in the U.S. Corn Belt Abstract We develop a choice experiment (CE) to estimate the benefits of nutrient reductions in the US Corn Belt. The study area covers Illinois, Indiana, and Iowa, the three states that contribute the largest amount of nutrients to the Gulf of Mexico and whose nutrient reductions are vital to achieving targets to reduce the hypoxic dead zone in the Gulf. We find that the public places large values on various local ecosystem services, including aquatic biodiversity, aesthetics of increased farm landscape diversity associated with conservation practices, and water-based recreational activities. Moreover, the results indicate that upstream residents have a strong preference for water quality far downstream in the Gulf of Mexico as characterized by reducing the size of the dead zone. Our analysis of observed taste heterogeneity indicates that public preferences vary depending on familiarity with nutrient pollution issues, users versus non-users of local ecosystem services, and different age groups. Our findings inform policies to improve water quality in the Gulf of Mexico and local water bodies in the US Corn Belt. Choice experiment, Corn belt, Generalized multinomial logit model, Gulf of Mexico, Nutrient pollution, Water quality, Willingness to pay 3 2023 85 8 8 Environmental and Resource Economics 823 872 http://link.springer.com/10.1007/s10640-023-00784-4 text/html Abstract Seojeong Oh seojeongoh10@gmail.com University of Illinois at Urbana-Champaign Benjamin M. Gramig United States Department of Agriculture
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article Green Innovation and Economic Growth in a North–South Model Abstract If one region of the world switches its research effort from dirty to clean technologies, will other regions follow? To investigate this question, this paper builds a North–South model that combines insights from directed technological change and quality-ladder endogenous growth models with business-stealing innovations. While North represents the region with climate ambitions, both regions have researchers choosing between clean and dirty applications, and the resulting technologies are traded. Three main results emerge: (1) In the long run, if the North’s research and development (R&D) sector is sufficiently large, researchers in South will follow the switch from dirty to clean R&D made by researchers in North, motivated by the growing value of clean markets. (2) If the two regions direct research effort toward different sectors and the outputs of the two sectors are gross substitutes, then the long-run growth rates in both regions will be lower than if the global research effort were invested in one sector. (3) If the North’s government induces its researchers to switch to clean R&D through clean technology subsidies, the welfare-maximising choice for South is to ensure that all of its researchers switch too, unless the social discount rate is high. The last result is true even if the South’s R&D sector is large. Directed technological change, Green growth, Endogenous growth model, Cross-country spillovers, Unilateral climate policy, Green R&D subsidies 3 2023 85 8 2 Environmental and Resource Economics 615 648 O33 O41 O44 Q55 Q56 http://link.springer.com/10.1007/s10640-023-00778-2 text/html Abstract Jan Witajewski-Baltvilks jwitajewski@wne.uw.edu.pl University of Warsaw Institute for Structural Research Carolyn Fischer cfischer2@worldbank.org The World Bank
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article Drought Exposure and Accuracy: Motivated Reasoning in Climate Change Beliefs Abstract The lack of stringent policies to avert climate change has increased the importance of effective and timely adaptation. Adequate adaptation is particularly important for agricultural communities in developing countries, which may most suffer the consequences of climate change. Evidence is still scarce on how people in the most vulnerable areas form climate change beliefs and whether such beliefs exhibit cognitive biases. Using survey data from rural households in Bangladesh together with a meteorological measure of excess dryness relative to historical averages, I study the effect of long-term average drought exposure and short-term deviations on beliefs about drought frequency and the interpretation of drought events. To explore how individuals interpret past droughts, I use an instrumental variable approach and investigate whether individual beliefs lead to asymmetric distortion of objective information. The results show that individuals recollect and overweight evidence tilted towards their prior beliefs, providing evidence of confirmation bias as a directional motivated reasoning mechanism. The findings highlight the need for models that account for behavioral factors and cognitive biases in the study of climate change beliefs for effective communication and adaptation policies. Beliefs, Climate change, Droughts, Expectation formation, Motivated reasoning 3 2023 85 8 3 Environmental and Resource Economics 649 672 D10 D80 Q12 Q51 Q54 http://link.springer.com/10.1007/s10640-023-00779-1 text/html Abstract Guglielmo Zappalà guglielmo.zappala@psemail.eu Université Paris 1 Panthéon-Sorbonne
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article When Climate Change Determines International Agreements: Evidence from Water Treaties Abstract Is climate change pushing governments to implement international treaties for the management of common resources? Yes, at least with respect to the Water Treaties (WTs) on common basins and rivers studied in this article. We found that climatic conditions, such as higher temperatures and lower precipitation, directly lead to a higher likelihood of signing WTs in the short, and even more so in the long run. By analyzing the impact of changes in climatic conditions observed between 1961–1975 and 1993–2007, we found that a one-degree Celsius increase in temperature has resulted in a 16.6% increase in the likelihood of signing WTs. These results are obtained for treaties related to environmental protection and economic development, and they also hold for “strong” treaties. Water treaties, climate change, International agreements 3 2023 85 8 1 Environmental and Resource Economics 587 614 F1 Q2 http://link.springer.com/10.1007/s10640-023-00776-4 text/html Abstract Fabien Candau fabien.candau@univ-pau.fr Universite de Pau et des Pays de l’Adour, E2S UPPA, CNRS, TREE Tchapo Gbandi gbanditchapo88@gmail.com Université Jean Monnet, GATE
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article Anatomy of Green Specialisation: Evidence from EU Production Data, 1995–2015 Abstract We study green specialisation across EU countries and detailed 4-digit industrial sectors over the period of 1995–2015 by harmonizing product-level data (PRODCOM). We propose a new list of green goods that refines lists proposed by international organizations by excluding goods with double usage. Our analysis reveals important structural characteristics of green specialisation in the manufacturing sector. First, green production is highly concentrated, with 13 out of 119 4-digit industries, which are high-tech and account for nearly 95% of the total. Second, green and polluting productions do not occur in the same sectors, and countries specialise in either green or brown sectors. Third, our econometric analysis identifies three key features as relevant for green specialisation: (i) first-mover advantage and high persistence of green specialisation, (ii) complementarity with non-green capabilities and (iii) the degree of diversification of green capabilities. Green goods, Green specialisation, Environmental policy stringency, Complementarity, Path dependency 3 2023 85 8 5 Environmental and Resource Economics 707 740 Q55 L60 O44 http://link.springer.com/10.1007/s10640-023-00781-7 text/html Abstract Filippo Bontadini fbontadini@luiss.it LUISS Guido Carli University University of Sussex Francesco Vona francesco.vona@unimi.it University of Milan Fondazione Eni Enrico Matteri (FEEM) OFCE Sciences-Po
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article The Impacts of Removing Fossil Fuel Subsidies and Increasing Carbon Taxation in Ireland Abstract Though the magnitude of fossil fuel subsidies eclipses carbon pricing revenues, policies and economic literature focus on carbon taxation. This paper aims to show that removing fossil fuel subsidies can reduce emissions as much as carbon taxation without making producers and consumers worse off. Using a dynamic intertemporal CGE model of Ireland, we compare removing eight Irish fossil fuel subsidies and increasing the carbon tax to €100 per tonne by 2030. We find that both policies result in similar emission reductions. Carbon taxation results in lower negative GDP and investment impacts, whereas subsidy removal results in lower negative employment impacts, higher revenues, an improved trade balance and lower debt. The impacts across sectors and households are distributed more evenly under a carbon tax, where subsidy removal results in extreme impacts for specific sectors and households. Excluding households’ subsidies from removal can alleviate these household distributional impacts at no cost to emission reduction. With revenue recycling reducing tax rates, a double-dividend is found at the expense of worsened income distribution. The economic benefit of revenue recycling is greater when removing subsidies than with carbon taxation and results confirm the importance of fossil fuel subsidies in climate policy. Carbon tax, Fossil fuel subsidies, Revenue recycling, Emissions, Welfare, Intertemporal CGE 3 2023 85 8 6 Environmental and Resource Economics 741 782 http://link.springer.com/10.1007/s10640-023-00782-6 text/html Abstract Kelly Bruin kelly.debruin@esri.ie Economic and Social Research Institute Trinity College Dublin Aykut Mert Yakut mert.yakut@esri.ie Economic and Social Research Institute Trinity College Dublin
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article Eliciting Non-hypothetical Willingness-to-pay for Novel Products: An Application to Cultured Meat Abstract Estimating the demand for greener products may be challenging when these products are not yet on the market. We design an experiment to elicit the willingness-to-pay (WTP) for a novel product in a non-hypothetical way, despite the fact that the product is not marketed and thus cannot be delivered to participants. We consider a cultured meat product which is presented to participants using the producer’s advertising. The basic experimental device consists in eliciting (i) how much a participant is willing to pay for the product under uncertainty about product delivery, and (ii) her beliefs about the probability that the product will be actually delivered. In our sample of 158 French students, under 20% of participants never want to buy the product, and below 10% assign a probability of zero that the product will be delivered if purchased. The average WTP is fairly low, at about 3 Euros per 100 g. A number of factors increase (e.g., education and low meat consumption) or decrease (e.g., neophobia and disgust) this WTP. The simple exposure to the new meat substitute during this experiment reduces subjects’ pro-meat justifications. We investigate the external validity of our results using a hypothetical survey on a representative sample (N = 1200). We also discuss methodological issues such as deception and incentive compatibility. Greener products, Cultured meat, Experiment, Willingness-to-pay, Belief elicitation 3 2023 85 8 4 Environmental and Resource Economics 673 706 Q18 C91 D91 http://link.springer.com/10.1007/s10640-023-00780-8 text/html Abstract Romain Espinosa romain.espinosa@cnrs.fr CNRS, CIRED Nicolas Treich University Toulouse Capitole
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article Drivers of Bilateral Climate Finance Aid: The Roles of Paris Agreement Commitments, Public Governance, and Multilateral Institutions Abstract Using granular data from the OECD from 2010 to 2018 that differentiate between adaptation and mitigation measures to address climate change, we employed a double-hurdle model to examine whether countries’ Paris Agreement commitments and governance capacity help attract international climate-change-related financial aid. We found that (1) countries received a short-term aid boost in the year when they submitted the nationally determined contribution, and countries that committed only to action targets rather than emission goals were more likely to receive funds; (2) both the quality of the budget and financial management and the quality of public administration significantly enhanced the likelihood of receiving aid, but only the quality of public administration contributed to attracting funding for adaptations; and (3) multilateral institutions played catalytic roles in fostering bilateral international climate-change aid, particularly by increasing the likelihood of funding. Climate change, Financial flow, Public governance, Multilateral institutions, Paris Agreement O13, O19, Q54, H83 3 2023 85 8 7 Environmental and Resource Economics 783 821 http://link.springer.com/10.1007/s10640-023-00783-5 text/html Abstract Xuehui Han xhan@imf.org The International Monetary Fund Yuan Cheng chengyuan@fudan.edu.cn Fudan Development Institute, Fudan University
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article Investigating Potential Impacts of Credit Failure Risk Mitigation on Habitat Exchange Outcomes Abstract Voluntary, market-based conservation programs are one tool available to land managers and regulators to maintain and enhance environmental resources. One such program type is a habitat exchange, through which a private landowner sells conservation to developers to offset a disturbance on the landscape. Since landowner participation is voluntary, price and contract terms must be sufficiently appealing to induce participation. Moreover, landowners who undertake costly actions to generate sellable credits face risk of failure. In particular, stipulated habitat improvements may fail to be achieved in the future due to events outside the control of landowners, resulting in foregone conservation payments. In the absence of sufficient real-world data for conventional econometric analysis, we implement a laboratory market experiment to assess the impact of market structure, credit failure risk, and a potential reimbursement policy on habitat exchange outcomes (market price, quantity traded, earnings, and efficiency). Findings suggest that failure risk significantly reduces habitat credit production and trade in this market environment, putting the potential success of such emerging markets in question. A private party risk mitigation strategy of buyers reimbursing sellers for production costs on failed units could mitigate these impacts. Specifically, reimbursing sellers for production costs on credits that fail to maintain habitat quality for their contract life can significantly mitigate reductions in conservation production resulting from this risk. Conservation markets, Experimental economics, Habitat exchange, Market risk, Trading institution 3 2019 73 7 5 Environmental and Resource Economics 815 842 http://link.springer.com/10.1007/s10640-019-00332-z text/html Abstract Karsyn Lamb klamb5@uwyo.edu University of Wyoming Kristiana Hansen kristi.hansen@uwyo.edu University of Wyoming Christopher Bastian bastian@uwyo.edu University of Wyoming Amy Nagler anagler@uwyo.edu University of Wyoming Chian Jones Ritten Chian.JonesRitten@uwyo.edu University of Wyoming
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article Private Benefits of Conservation and Procurement Auction Performance Abstract Payment-for-ecosystem services programs may use auctions to procure ecosystem services for cost-effective conservation. Conservation practices that generate private benefits (e.g., on-site benefits of erosion prevention) can reduce the effective cost of participation for landowners, and the inclusion of these services in the auction scoring criteria could increase overall cost-effectiveness for the buyer. However, the potential cost-effectiveness gain of including these private-benefit conservation practices may not be fully realized, as increased heterogeneity in the net cost of participation may reduce competition. Our induced-value laboratory experiment explores the impact of heterogeneous private benefits of conservation on auction cost-effectiveness when conservation practice choice is endogenous to offer formation. Heterogeneity in the private benefits of conservation across the landscape generates variation in competition levels across bidders that can lead to increased rent-seeking by bidders with substantial private benefits. Bid preferences, Ecosystem services, Heterogeneous bidders, Laboratory experiment, Procurement auction 3 2019 73 7 3 Environmental and Resource Economics 759 790 D44 Q15 Q57 http://link.springer.com/10.1007/s10640-019-00333-y text/html Abstract Marc N. Conte mconte7@fordham.edu Fordham University Robert Griffin rmgriff@stanford.edu Stanford University University of Massachusetts, Dartmouth
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article The Random Quantity Mechanism: Laboratory and Field Tests of a Novel Cost-Revealing Procurement Mechanism Abstract Information on private costs can improve the efficiency of programs that provide payment for environmental services in contexts involving information asymmetries and heterogeneous private costs. Using data from laboratory and field experiments, this paper presents and evaluates a novel private cost revealing mechanism, termed the random quantity mechanism (RQM), that can advance research in conservation contracting, payments for environmental services, and other similar settings. We examine the RQM’s performance in a laboratory setting using induced costs and report results obtained from the first field implementation of this mechanism, with smallholder farmers in Zambia. We show that the RQM is incentive-compatible, that participant decision-making maximizes expected payoffs, and that the mechanism provides non-parametric estimates of private costs. The paper contributes to economic field studies by introducing a new incentive-compatible mechanism that elicits individuals’ minimum willingness to accept across intensive margins, enabling researchers to estimate the supply of a service or commodity, and provides for exogenous variation in contract terms, which can aid in separately identifying the impacts of incentives and of participants’ willingness to accept on contract outcomes. Random quantity mechanism, Conservation auction, Procurement auction, Information asymmetry, Additionality, Payments for environmental services, BDM, Reverse auction, RQM, Zambia, Africa 3 2019 73 7 8 Environmental and Resource Economics 899 921 http://link.springer.com/10.1007/s10640-019-00335-w text/html Abstract Samuel D. Bell sam.bell@oregonstate.edu Oregon State University Nadia A. Streletskaya nadia.streletskaya@oregonstate.edu Oregon State University
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article Does Absolution Promote Sin? A Conservationist’s Dilemma Abstract This paper shows that households signing up for a green program exhibit an intriguing behavioral rebound effect: a promise to fully offset customers’ carbon emissions resulting from electricity usage increases their energy use post-adoption by 1–3%. The response is robust across empirical specifications, and is consistent with an economic model of rational energy consumption. Our results provide a cautionary tale for designing green product strategies in which the adoption of a product may lead to unexpected consequences. Carbon offsets, Behavioral rebound, Green marketing, Energy consumption 3 2019 73 7 9 Environmental and Resource Economics 923 955 http://link.springer.com/10.1007/s10640-018-0301-5 text/html Abstract Matthew Harding harding1@uci.edu University of California - Irvine David Rapson dsrapson@ucdavis.edu University of California - Davis
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article Policy Instruments and Incentives for Coordinated Habitat Conservation Abstract Nearly half of imperiled species (IS) listed under the US Endangered Species Act have most of their habitat on private land. Management of IS therefore relies on engaging private landowners in conservation to avoid listing and the accompanying land use restrictions. Two types of voluntary policy instruments are used to incentivize conservation on private lands: subsidies and voluntary conservation agreements with assurances (VCAAs), under which landowners implement conservation practices in return for assurance that no land use restrictions will be imposed if the practices are maintained. No prior work compares landowners’ incentives for strategic behavior under these instruments. This is important because habitat quality is influenced by landscape size, connectivity, and composition. The probability that an IS becomes listed—and the economic risks facing landowners—depends endogenously on management decisions by multiple landowners. We use theoretical and experimental approaches to compare conservation effort, spatial allocation of this effort, and cost-effectiveness of species protection under each instrument when species protection requires spatially-contiguous coordination. We find that VCAAs with land use restrictions are no more effective than land use restrictions with or without subsidies in coordinating conservation effort, and they do not result in greater species protection. Land use restrictions—either alone or coupled with subsidies—improve coordination. Agglomeration bonus, Economic experiment, Endangered species, Habitat conservation, Strategic interactions, Voluntary conservation agreement with assurances 3 2019 73 7 4 Environmental and Resource Economics 791 813 http://link.springer.com/10.1007/s10640-018-0304-2 text/html Abstract Carson Reeling creeling@purdue.edu Purdue University Western Michigan University Leah H. Palm-Forster University of Delaware Richard T. Melstrom Loyola University Chicago
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article Performance of Agglomeration Bonuses in Conservation Auctions: Lessons from a Framed Field Experiment Abstract The incorporation of an agglomeration bonus payment to encourage spatial coordination in auction mechanisms to allocate payments for ecosystem services (PES) contracts has been explored as a promising innovation that could enhance the effectiveness of PES schemes. Empirical evidence on the performance of this particular design feature is scant, and almost exclusively derived from laboratory experiments using student subjects. This study reports results from a framed field experimental auction allocating PES contracts with and without agglomeration bonus payments using actual forest land owners in rural China as subjects. We find tentative evidence that, in a PES auction that provides agglomeration bonuses, subjects tend to bid less in anticipation of receiving bonus payments when their neighbours are also successful in the auction. In addition, we have mixed findings as to whether the agglomeration bonus is able to induce a bidding pattern in favour of contiguous conservation. The two sets of results convey some encouraging signals of the theoretically postulated cost-effectiveness and conservation efficacy of the agglomeration bonus. Further research from the actual field is warranted in light of the policy significance of this innovative incentive mechanism. Agglomeration bonus, Conservation auction, Payments for ecosystem services, Policy impact evaluation, Framed field experiment 3 2019 73 7 6 Environmental and Resource Economics 843 869 C72 C90 Q23 Q57 http://link.springer.com/10.1007/s10640-019-00330-1 text/html Abstract Zhaoyang Liu University of Glasgow Jintao Xu Peking University Xiaojun Yang Xi’an Jiaotong University Qin Tu Beijing Normal University Nick Hanley University of Glasgow Andreas Kontoleon ak219@cam.ac.uk University of Cambridge
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article Environmental Labelling and Consumption Changes: A Food Choice Experiment Abstract This study examines how environment-related food labels affect shopping behaviour. Using an experimental store consisting of nearly 300 available food items, we observe the food purchases of consumers before and after each product is tagged with one of three environmental labels: single traffic lights, multiple traffic lights and the kilometric format. The kilometric format indicates the greenhouse gas emissions for each product by indicating the equivalent number of kilometres driven by an average car. The other two formats are based on the traffic-light rating system used for nutrients by the British Food Standard Agency. Multiple traffic lights present three traffic lights simultaneously: one each for greenhouse gas emissions, water eutrophication and air acidity. The single traffic light label displays one unique traffic light for greenhouse gas emissions. All three types of environmental labels lead consumers to purchase more environmentally friendly food baskets (i.e., significant decreases in carbon dioxide, nitrogen and sulfur dioxide emissions). Labelling, however, does not affect the price of selected food baskets (in Euros per 100 g) or their nutritional content. By generating more product substitutions between unlabelled and labelled baskets, multiple traffic lights are more effective in reducing GHG emissions, eutrophication and acidification. Labelling, Framed-field experiment, Food, Environment, Greenhouse gas emissions 3 2019 73 7 7 Environmental and Resource Economics 871 897 http://link.springer.com/10.1007/s10640-019-00328-9 text/html Abstract Laurent Muller laurent.muller@inra.fr INRA, Univ. Grenoble Alpes, Grenoble INP, CNRS Anne Lacroix anne.lacroix@inra.fr INRA, Univ. Grenoble Alpes, Grenoble INP, CNRS Bernard Ruffieux bernard.ruffieux@grenoble-inp.fr INRA, Univ. Grenoble Alpes, Grenoble INP, CNRS
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article Behavioral and Experimental Agri-Environmental Research: Methodological Challenges, Literature Gaps, and Recommendations Abstract Insights from behavioral and experimental economics research can inform the design of evidence-based, cost-effective agri-environmental programs that mitigate environmental damages and promote the supply of environmental benefits from agricultural landscapes. To enhance future research on agri-environmental program design and to increase the speed at which credible scientific knowledge is accumulated, we highlight methodological challenges, identify important gaps in the existing literature, and make key recommendations for both researchers and those evaluating research. We first report on four key methodological challenges—underpowered designs, multiple hypothesis testing, interpretation issues, and choosing appropriate econometric methods—and suggest strategies to overcome these challenges. Specifically, we emphasize the need for more detailed planning during the experimental design stage, including power analyses and publishing a pre-analysis plan. Greater use of replication studies and meta-analyses will also help address these challenges and strengthen the quality of the evidence base. In the second part of this paper, we discuss how insights from behavioral and experimental economics can be applied to improve the design of agri-environmental programs. We summarize key insights using the MINDSPACE framework, which categorizes nine behavioral effects that influence decision-making (messenger, incentives, norms, defaults, salience, priming, affect, commitment, and ego), and we highlight recent research that tests these effects in agri-environmental contexts. We also propose a framework for prioritizing policy-relevant research in this domain. Behavioral insights, Conservation, Effect size, Environmental economics, Experimental design, Power analysis, Subject pools 3 2019 73 7 1 Environmental and Resource Economics 719 742 C9 D9 Q58 Q52 http://link.springer.com/10.1007/s10640-019-00342-x text/html Abstract Leah H. Palm-Forster leahhp@udel.edu University of Delaware Paul J. Ferraro Johns Hopkins University Nicholas Janusch California Energy Commission Christian A. Vossler University of Tennessee Kent D. Messer University of Delaware
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article Subject Pools and Deception in Agricultural and Resource Economics Experiments Abstract The use of student subjects and deception in experiments are two controversial issues that often raise concerns among editors and reviewers, which might prevent quality research from being published in agricultural and resource economics (ARE) journals. We provide a self-contained methodological discussion of these issues. We argue that field professionals are the most appropriate subjects for questions related to policy or measurement, and students are the most appropriate subjects for scientific research questions closely tied to economic theory. Active deception, where subjects are provided with explicitly misleading information, has been avoided in the mainstream economics discipline because it can lead to a loss of experimental control, lead to subject selection bias, and impose negative externalities on other researchers. Disciplinary ARE journals may want to abide by these norms against deception to maintain credibility. Interdisciplinary ARE journals may have more flexibility, although it is important to provide guidelines to avoid too much reviewer-specific variation in standards. For ARE researchers, we suggest employing a deception-free experimental design whenever possible because we know of no field in which deception is encouraged. Laboratory experiments, Field experiments, Methodology 3 2019 73 7 2 Environmental and Resource Economics 743 758 C90 Q10 Q30 Q50 http://link.springer.com/10.1007/s10640-018-0289-x text/html Abstract Timothy N. Cason cason@purdue.edu Purdue University Steven Y. Wu sywu@purdue.edu Purdue University
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article Systematic Variation in Waste Site Effects on Residential Property Values: A Meta-Regression Analysis and Benefit Transfer Abstract This article presents a meta-analysis based on 727 estimates from 83 hedonic pricing studies to provide new insights on the effects of waste sites on residential property values. Relative to previous meta-analyses on this subject, estimates are corrected for publication bias and the ability of the meta-regression model to produce reliable benefit-transfer estimates is assessed. Proximity to severely contaminated waste sites has a supremely negative impact on residential property values, whereas on average the distance from non-hazardous waste sites has no effect. Correcting for publication bias has a sizeable impact, reducing the average effect size by up to 38%. Benefit-transfer errors based on the meta-regression model are fairly large and, in line with the broader literature, outperform simple value transfer when the underlying data sample is heterogeneous. Hedonic price model, Meta-regression analysis, Publication bias, Residential property values, Waste sites 3 2021 78 3 1 Environmental and Resource Economics 381 416 http://link.springer.com/10.1007/s10640-021-00536-2 text/html Abstract Marvin Schütt schuett@economics.uni-kiel.de Kiel University
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article Open Access Versus Restricted Access in a General Equilibrium with Mobile Capital Abstract Open Access versus Restricted Access in a General Equilibrium with Mobile Capital We consider an economy with two sectors, resource and manufacturing, in a general-equilibrium setting. Two property regimes in the resource sector are compared, open access versus restricted access, with both labor and capital mobility. We first contribute by deriving the multi-factor demand conditions under open access. We provide necessary and sufficient conditions for a factor to gain from a property regime change. Redistributive effects depend crucially on relative factor intensities. Contrary to common wisdom, labor may gain from being “expelled” from the resource sector following privatization. Property rights, Natural resources, Open access, General equilibrium, Mobile capital, Factor payments, Factor intensities, Income distribution 3 2021 78 3 5 Environmental and Resource Economics 521 544 D02 D23 D33 K11 Q2 N5 O13 http://link.springer.com/10.1007/s10640-021-00542-4 text/html Abstract Ronan Congar ronan.congar@normandie-univ.fr Université de Rouen Normandie et Normandie Université Louis Hotte louis.hotte@uottawa.ca University of Ottawa
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article The Short-Run Effect of a Local Fiscal Squeeze on Pollution Abatement Expenditures: Evidence from China’s VAT Pilot Program Abstract Introduced in 2012, China’s value-added tax (VAT) pilot program gradually replaced business tax (BT) with VAT. It has created a large fiscal squeeze for the local government since 75% of VAT revenue goes to the central government. Employing a difference-in-differences estimator with continuous treatment intensity, we find that this fiscal squeeze has a negative effect on pollution abatement expenditures. Moreover, private firms in eastern regions are less responsive to this shock than those in the rest of China due to having better regulated local governments. We also find that this effect is smaller in magnitude if the firm owner is younger, more educated or has industrial and political connections compared to her respective counterparts. This fiscal squeeze reduces pollution abatement expenditures more in regions with higher fiscal stress, looser environmental regulation, and lower pollution abatement costs. Further exploration shows that, in response to this fiscal squeeze, local governments have adopted several tools to compensate for revenue loss, including increasing tax enforcement and loosening environmental regulation. VAT pilot program, Pollution abatement expenditure, Tax burden, Environmental regulation 3 2021 78 3 3 Environmental and Resource Economics 453 485 H32 H71 http://link.springer.com/10.1007/s10640-021-00539-z text/html Abstract Fei Peng pengfeihfut@163.com Hefei University of Technology Langchuan Peng langchuan_peng@126.com Nanjing Audit University Jie Mao maojie@uibe.edu.cn University of International Business and Economics Peng Lu rcpe_cass@126.com Chinese Academy of Social Sciences
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article Environmental Tax Reform in a Federation with Rent-Induced Migration Abstract We study the welfare effects of a revenue-neutral environmental tax reform in a federation. The reform consists of increasing a tax on a polluting input and reducing that on labor income. Households are fully mobile within the federation. Regions are unequally endowed with a nonrenewable natural resource. Resource rents are owned by regions and are redistributed to citizens on a residence basis, which generates a motive for inefficiently relocating to the resource-rich jurisdiction. Since the resource-poor region has a higher marginal product of labor than does the resource-rich region in equilibrium, the tax reform mitigates the scope of inefficient migration if labor and the natural resource are complements, but exacerbates it if they are substitutes. This welfare effect may significantly affect fiscal costs of pollution pricing and calls for an adjusted environmental tax, higher when inputs are complements, lower when they are substitutes, as compared with a model where migration is assumed away. Federalism, Environment, Taxation, Equalization, Mobility, Externalities 3 2021 78 3 4 Environmental and Resource Economics 487 519 D62 H21 H23 H77 http://link.springer.com/10.1007/s10640-021-00540-6 text/html Abstract Jean-Denis Garon garon.jean-denis@uqam.ca ESG-UQAM CESIfo and CIRANO Charles Séguin ESG-UQAM CIREQ
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article Balancing Cost Effectiveness and Incentive Properties in Conservation Auctions: Experimental Evidence from Three Multi-award Reverse Auction Mechanisms Abstract Government agencies are increasingly using economic incentives to encourage landowners to adopt conservation practices. Auctions enable agencies to identify land conservation practices with low opportunity costs. At the same time, landowners’ opportunity costs contain useful information for government agencies to rank conservation priorities. This paper introduces a new reverse auction mechanism that performs well both from the cost effectiveness and cost-revelation perspectives and compares three multi-award reverse auction mechanisms. The first mechanism is called the Uniform Price Reverse (UPR) auction, where each winning bidder is paid the lowest rejected bid. The second mechanism is called the First Price Reverse (FPR) auction, where winning bidders are paid their submitted bids. The third, novel, mechanism is called the Generalized Second Price Reverse (GSPR) auction, where each winning bidder is paid the bid that is immediately higher. Theoretically, I derive the equilibrium bidding strategy for each auction mechanism and show that a symmetric equilibrium strategy may not exist under the GSPR auction. Empirically, lab experiment results show that UPR and GSPR auctions lead to a higher efficiency level compared to FPR, while UPR auction yields the lowest auctioneer surplus and is the least cost effective. As a result, GSPR maintains good incentive properties similar to UPR and presents potential large cost-saving opportunities to the auctioneer. Conservation programs, Environmental market, Procurement auction, Generalized second price reverse auction, Experimental economics 3 2021 78 3 2 Environmental and Resource Economics 417 451 C91 C92 D44 http://link.springer.com/10.1007/s10640-021-00538-0 text/html Abstract Pengfei Liu pengfei_liu@uri.edu University of Rhode Island
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article Improving Truthful Reporting of Polluting Firms by Rotating Inspectors: Experimental Evidence from a Bribery Game Abstract We consider a two-layered review system of environmental regulation where a polluting firm periodically self-reports its emissions to a regulatory authority. The system typically requires a third party to verify the firm’s report and, in addition, an official of the regulatory authority to spot-check. If there are potential gains from corruption, both the verifier and the official might be corruptible. Corruption is more likely in repeated-game situations, as suggested by the literature on corruption experiments. Our experimental design is motivated by the risk of under-reporting in emissions trading schemes where both the verifier and the official are corruptible and focuses on a situation with untruthful reporting and lax enforcement. Our test-bed is a three-player bribery game. We study how different types of rotation—a baseline of fixed matching, a complete rotation treatment, and two incomplete rotation treatments—affect untruthful reporting that requires collusion between three participants in a hierarchical structure. Our findings suggest that complete rotation improves significantly firms’ truthful reporting and verifiers’ truthful verification compared to situations where none is rotated, while incomplete rotation does not have such impact. In our experiment, none of the rotation treatments had a significant impact on the behavior of officials. Truthful reporting, Corruption, Rotation, Environmental regulation, Experiment Environmental and Resource Economics 1 33 C92 D83 K42 Q58 http://link.springer.com/10.1007/s10640-020-00417-0 text/html Abstract Peiyao Shen shenpy@shanghaitech.edu.cn ShanghaiTech University Regina Betz betz@zhaw.ch Zurich University of Applied Sciences Andreas Ortmann a.ortmann@unsw.edu.au UNSW Australia Rukai Gong gong.rukai@dhu.edu.cn Donghua University
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article EAERE Award for the Best Paper Published in Environmental and Resource Economics During 2019 Abstract We present details of the EAERE Award for the Best Paper Published in Environmental and Resource Economics During 2019 together with those Highly Commended papers published during this period. EAERE award, Best paper, Published in environmental and resource economics, 2019 Environmental and Resource Economics 1 3 http://link.springer.com/10.1007/s10640-020-00418-z text/html Abstract Phoebe Koundouri pkoundouri@aueb.gr Athens University of Economics and Business Astrid Dannenberg dannenberg@uni-kassel.de University of Kassel Ian J. Bateman I.Bateman@exeter.ac.uk University of Exeter Business School
oai:RePEc:kap:enreec:v::y::i::d:10.1007_s10640-020-00419-y2020-04-05RePEc:kap:enreec
article Can the Threat of Economic Sanctions Ensure the Sustainability of International Fisheries? An Experiment of a Dynamic Non-cooperative CPR Game with Uncertain Tipping Point Abstract Complex dynamic systems such as common-pool resource systems can undergo a critical shift at a given threshold, the so-called tipping point, which potentially requires substantial changes from the management system. We present in this research a framed laboratory experiment design to examine how the threat of economic sanctions influences the strategic management of a common-pool resource. We use the context of the East Atlantic bluefin tuna international fishery as it has been the archetype of an overfished and mismanaged fishery until a dramatic reinforcement of its regulations followed the threat of a trade ban. We consider endogenous threats and examine their effects on cooperation through harvest decisions taken in the context of non-cooperative game theory in which cooperation could be sustained using a trigger strategy. Our experiment results show that the threat of economic sanctions fosters more cooperative behaviors, less over-exploitation, and a more precautionary management of resources, reducing the economic rent dissipation. This result is exacerbated when the location of the tipping point that triggers the economic sanction is uncertain. In order to avoid free-riding behaviors and foster the emergence of a self-enforcing agreement, we suggest to introduce economic sanctions, such as trade restrictions, associated with uncertain biological limit reference points. Common-pool resources, Experimental economics, Fisheries management, International fisheries, Policy making, Tipping points Environmental and Resource Economics 1 24 http://link.springer.com/10.1007/s10640-020-00419-y text/html Abstract Selles Jules jules.selles@gmail.com Muséum national d’histoire naturelle, UMR BOREA 7208 Bonhommeau Sylvain IFREMER Délégation de l’Océan Indien Guillotreau Patrice Université de Nantes, IEMN-IAE Vallée Thomas Université de Nantes, IEMN-IAE
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article Firm Level Evidence of Disaster Impacts on Growth in Vietnam Abstract The theory about the impacts of natural disasters on firms is ambiguous and the empirical evidence on this topic is scarce, which hampers the design of disaster risk reduction and climate change adaptation policies. In this paper we identify the short-run impacts of storms and floods on firm growth in labor, capital, and sales, using Enterprise Census data (2000–2014) for Vietnam. We define storms and floods with three different disaster measures: physical intensities, number of deaths, and economic damage. The performance of these disaster measures is compared by estimating dynamic growth models using the Blundell–Bond system generalized method of moments. We find evidence that flooding increases labor growth and capital growth but reduces sales growth significantly up to 3 years after flooding. We also find some evidence of positive impacts on labor growth and capital growth but mostly negative impacts on sales growth for storms within 3 years after storms strike. The impacts of floods and storms on firm growth are more pronounced and persistent for small and medium sized firms. Finally, unlike at the macro level, the direction and scale of disaster impacts found at the firm level are fairly consistent across the three disaster measures. Natural disaster, Disaster impact, Firm growth, Physical intensity, GMM 2 2021 79 6 5 Environmental and Resource Economics 277 322 http://link.springer.com/10.1007/s10640-021-00562-0 text/html Abstract Fujin Zhou fujin.zhou@vu.nl Vrije Universiteit Wouter Botzen wouter.botzen@vu.nl Vrije Universiteit Utrecht University University of Pennsylvania
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article Cooperative Management of Ecosystem Services: Coalition Formation, Landscape Structure and Policies Abstract A growing body of literature shows that full-cooperation among farmers to manage productive ecosystem services would yield gains with respect to uncoordinated approaches. The public good feature of these ecosystem services may, however, hinder the emergence of a cooperative solution at the landscape scale. In this paper, we introduce in a coalition formation game a spatially-explicit bioeconomic model of fruit pollination, where pollinaton depends on the distance to the choosen location of natural habitats. We analyse: (i) which coalitions are stable; (ii) what benefits they provide; (iii) how cooperation depends on the initial landscape structure; and (iv) how policy instruments affect cooperation. The theoretical model presents the rationality of cooperation but, due to the detailed heterogeneity and complex spatial interactions among farms, we use a numerical example to determine the stable coalitions. We find that only small coalitions are stable and that the benefits of cooperation decrease when the spatial autocorrelation of fruit tree covers increase. Policy instruments can increase the interest for cooperation but per-hectare payments and minimum participation rules may reduce the habitat area at the margin (by decreasing the stability of coalitions). Price premium for the coalition members increase the habitat area but its budget-effectiveness decreases as the spatial autocorrelation of fruit tree covers increase. Agri-environmental policy, Biodiversity, Collective incentives, Externalities, Pollinators, Spatially explicit spillovers 2 2021 79 6 6 Environmental and Resource Economics 323 356 http://link.springer.com/10.1007/s10640-021-00563-z text/html Abstract Francois Bareille francois.bareille@inrae.fr University of Bologna AgroParisTech, INRAE, Paris-Saclay University Matteo Zavalloni University of Bologna Meri Raggi University of Bologna Davide Viaggi University of Bologna
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article Optimal Carbon Storage in Mixed-Species Size-Structured Forests Abstract We extend the study of economically optimal carbon storage to a previously unexplored forest type, mixed-species size-structured stands. The ecological model applied in the study is a transition matrix model with growth functions for boreal Norway spruce (Picea abies (L.) Karst.), birch (Betula pendula Roth and B. pubescens Ehrh.), and other broadleaves. The other broadleaved trees are assumed to have no commercial value. We maximize the sum of timber revenues and the value of carbon storage by optimizing the timing and intensity of thinnings and the potentially infinite rotation age. The optimization problem is solved in its general dynamic form using gradient-based interior point methods and a genetic algorithm. We present results for a mixed stand of Norway spruce and birch, and a mixed stand of Norway spruce, birch, and other broadleaves, and compare these to a pure Norway spruce stand. We show that carbon pricing increases stand volume by postponing harvests and limiting them to larger trees, and changes the optimal species composition by increasing the share of Norway spruce relative to birch. Further, carbon pricing incentivizes maintaining other broadleaves in the stand despite their lack of commercial value, thus increasing tree species diversity. We find that sawlog and total yields increase with carbon price. We show that the higher the number of tree species in a stand, the lower the marginal cost of carbon storage. Carbon sequestration, Carbon subsidy, Continuous cover forestry, Dynamic optimization, Optimal rotation, Multi-species forestry 2 2021 79 6 4 Environmental and Resource Economics 249 275 http://link.springer.com/10.1007/s10640-021-00559-9 text/html Abstract Aino Assmuth aino.assmuth@luke.fi University of Helsinki Natural Resources Institute Finland (LUKE) Janne Rämö Natural Resources Institute Finland (LUKE) Olli Tahvonen University of Helsinki
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article Political Stability: an Impetus for Spatial Environmental Spillovers Abstract Our paper firstly investigates political stability as an underlying mechanism for the phenomenon of environmental spillovers across countries. If political stability exerts a significant impact on environmental quality and it is contagious across country borders, political stability of neighboring countries would be an impetus for environmental spillovers. Taking into account structural breaks in empirical analysis, we test these hypotheses based on an annual country-level panel data set during 2002 to 2018. Utilizing the dynamic ordinary least square (DOLS) method and the panel-based Vector Error Correction (VEC) model, we demonstrate that an improvement in political stability in one country not only enhances the environmental quality of its own, but also meliorates that of its neighbors through the spillovers of political stability. Our results also withstand sensitivity checks for cross-sectional dependence in the panel. Several policy implications are provided in accordance with our findings. Political stability, Spatial environmental spillover, Structural breaks, Dynamic ordinary least square, VEC Model 2 2021 79 6 8 Environmental and Resource Economics 387 415 F50 Q50 R11 http://link.springer.com/10.1007/s10640-021-00568-8 text/html Abstract Bo Sui Shaanxi Normal University Chun-Ping Chang Shih Chien University Yin Chu yinchu@zuel.edu.cn Zhongnan University of Economics and Law
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article The Design of Renewable Fuel Mandates and Cost Containment Mechanisms Abstract Policies to reduce greenhouse gas emissions from transportation fuels often take the form of renewable fuel mandates rather than taxes or cap-and-trade programs. Delays in the development and deployment of new technologies when binding mandates exist for their use may lead to situations with high compliance costs. We study the effects and efficiency of two mandates, a renewable share mandate and a carbon intensity standard, with and without a cost containment mechanism. Using both a theoretical model of a regulated fuel industry and a numerical model of the U.S. fuel market, we show that cost containment mechanisms can have the benefit of both constraining compliance costs and limiting deadweight loss. According to our numerical results, an optimally set mandate alone leads to only modest gains over business as usual welfare levels. The efficiency of both policies, especially carbon intensity standards, can increase substantially when combined with a cost containment mechanism. Renewable fuels, Share mandates, Intensity standards, Cost containment mechanisms, Hybrid policies H23, Q42, Q54, Q58 2 2021 79 6 3 Environmental and Resource Economics 213 247 http://link.springer.com/10.1007/s10640-021-00558-w text/html Abstract Gabriel E. Lade glade@macalester.edu Macalester College C.-Y. Cynthia Lin Lawell clinlawell@cornell.edu Cornell University
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article Parametric and Semiparametric Efficiency Frontiers in Fishery Analysis: Overview and Case Study on the Falkland Islands Abstract Provision of adequately valued individual transferable quotas and effort quotas is essential for sustainability and profitability of a fishery. Despite possible misleading consequences for policy-making, the extent to which fishery inefficiency estimates and rankings may depend on the model used, has received less attention. This paper first reviews determinants of fishers’ behaviour under regulated harvesting, with the Falkland Islands as focus case. Next, a ‘best scenario’ long-term equilibrium framework is outlined, under a regime of transferable effort quotas and fishing seasons as implemented in the Islands, followed by an overview of panel data stochastic frontier models, with specific regard to fisheries. To test hypotheses and impact of a mainly ITEQ-based regime for Falkland fisheries, two parametric and one semiparametric model rely on different assumptions on frontiers and inefficiency scores. Relative to companies operating in Falkland seas, regression estimates highlight the relevance of economies of scale, vessel ownership, and climatic factors among others, with improved cost effectiveness, and revenue efficiency frontier-enhancing/inefficiency-reducing effects, following the implementation of the new regime. Within either modelling approach, inefficiency differs marginally across regression specifications, but mismatches in levels and rankings emerge between parametric and semiparametric models. Relative to southern hake catches by Falkland trawlers, the semiparametric approach suggests upward shifts in output frontiers under the new fishery regime, with inefficiency scores substantially unaltered between two functional specifications. Fishery efficiency, Sustainability, Individual transferable effort quota, Stochastic frontier, Panel data models, Falkland Islands 2 2021 79 6 1 Environmental and Resource Economics 169 210 C14 C23 Q22 Q28 http://link.springer.com/10.1007/s10640-021-00557-x text/html Abstract Stefano Mainardi stemaind@gmail.com UMCS – Uniwersytet Marii Curie-Skłodowskiej VŠB - Technical University of Ostrava
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article Correction to: Parametric and Semiparametric Efficiency Frontiers in Fishery Analysis: Overview and Case Study on the Falkland Islands A correction to this paper has been published: https://doi.org/10.1007/s10640-021-00566-w 2 2021 79 6 2 Environmental and Resource Economics 211 211 http://link.springer.com/10.1007/s10640-021-00566-w text/html Abstract Stefano Mainardi stemaind@gmail.com UMCS – Uniwersytet Marii Curie-Skłodowskiej VŠB - Technical University of Ostrava
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article Welfare Implications of Water Scarcity: Higher Prices of Desalination Abstract In this paper, we evaluate the welfare implications of shortages in renewable resources, and investigate the effects of cross-subsidization on these shortages. We set up a stochastic dynamic programming model in which a benevolent supplier allocates the resource for multiple user groups subject to revenue and resource constraints. The supplier also has access to an external source that can be utilized at a certain cost. The solution to the model gives the “optimal” sectoral prices, and demand for the external source. We find out that saving budget surplus during periods of scarcity allows the planner to charge prices below average costs when the resource is abundant. Using data from Turkey, we simulate our dynamic model to quantify the implications of cross-subsidization on water use across user groups. Renewable resource, Water shortages, Stochastic dynamic programming, Desalination, Cross-subsidization 4 2019 73 8 3 Environmental and Resource Economics 995 1022 D12 H21 Q15 Q25 http://link.springer.com/10.1007/s10640-018-0284-2 text/html Abstract Yiğit Sağlam Yigit.Saglam@vuw.ac.nz Victoria University of Wellington
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article Is Recycling a Threat or an Opportunity for the Extractor of an Exhaustible Resource? Abstract We examine the best extraction strategies for the provider of an exhaustible resource that can be recycled. In a two-period model of resource extraction, the extractor faces prospective entry by a recycler that incurs a fixed cost to produce a perfect substitute of the virgin resource. Its entry is an opportunity or a threat for the extractor, depending on whether it maximizes social welfare or its own revenue. Our results highlight how prospective recycling modifies the Hotelling rule. We characterize various entry possibilities. The benevolent extractor may accommodate or promote recycling, while the self-interested extractor may accommodate or deter recycling. Entry, Exhaustible resource, Hotelling rule, Ramsey formula, Recycling 4 2019 73 8 8 Environmental and Resource Economics 1109 1134 D40 L13 Q30 http://link.springer.com/10.1007/s10640-018-0293-1 text/html Abstract Bocar Samba Ba bocar_samba.ba@uca.fr Université Clermont Auvergne Philippe Mahenc philippe.mahenc@umontpellier.fr CEE-M, Univ Montpellier
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article Heterogeneous Patience, Bargaining Power and Investment in Future Public Goods Abstract In many environmental contexts, including climate change mitigation, agents face investment opportunities that have shared, but greatly delayed benefits. Efficient levels of aggregate investment therefore require collective action, but they are also highly sensitive to the choice of discount rate. Motivated by empirical evidence that suggests discount rates vary considerably, this paper investigates the impact of heterogeneity in discount rates on sharing of investment costs. An application of the canonical bargaining model shows that the larger share of the costs gradually shifts from impatient to patient agents as the time horizon increases. Discounting, Heterogeneity, Bargaining, Public goods, Climate change, International agreements 4 2019 73 8 7 Environmental and Resource Economics 1101 1107 D90 C78 H41 Q50 Q54 http://link.springer.com/10.1007/s10640-018-0291-3 text/html Abstract Ram Fishman ramf@post.tau.ac.il Tel Aviv University
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article Correction to: Global Energy Consumption in a Warming Climate The article was published without the provided acknowledgement. By way of this correction, the authors would like readers to know the following (addendum): 4 2019 73 8 18 Environmental and Resource Economics 1415 1415 http://link.springer.com/10.1007/s10640-019-00334-x text/html Abstract Enrica Cian enrica.decian@feem.it Centro Euro-Mediterraneo sui Cambiamenti Climatici and Fondazione Eni Enrico Mattei Ian Sue Wing isw@bu.edu Boston University
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article Economic Growth Effects of Alternative Climate Change Impact Channels in Economic Modeling Abstract Despite increasing empirical evidence of strong links between climate and economic growth, there is no established model to describe the dynamics of how different types of climate shocks affect growth patterns. Here we present the first comprehensive, comparative analysis of the long-term dynamics of one-time, temporary climate shocks on production factors, and factor productivity, respectively, in a Ramsey-type growth model. Damages acting directly on production factors allow us to study dynamic effects on factor allocation, savings and economic growth. We find that the persistence of impacts on economic activity is smallest for climate shocks directly impacting output, and successively increases for direct damages on capital, loss of labor and productivity shocks, related to different responses in savings rates and factor-specific growth. Recurring shocks lead to large welfare effects and long-term growth effects, directly linked to the persistence of individual shocks. Endogenous savings and shock anticipation both have adaptive effects but do not eliminate differences between impact channels or significantly lower the dissipation time. Accounting for endogenous growth mechanisms increases the effects. We also find strong effects on income shares, important for distributional implications. This work fosters conceptual understanding of impact dynamics in growth models, opening options for links to empirics. Climate change, Damages, Economic growth, Impact channels, Production factors, Persistence 4 2019 73 8 16 Environmental and Resource Economics 1357 1385 http://link.springer.com/10.1007/s10640-018-00306-7 text/html Abstract Franziska Piontek piontek@pik-potsdam.de Potsdam Institute for Climate Impact Research Matthias Kalkuhl Mercator Research Institute on Global Commons and Climate Change University Potsdam Elmar Kriegler Potsdam Institute for Climate Impact Research Anselm Schultes Potsdam Institute for Climate Impact Research Marian Leimbach Potsdam Institute for Climate Impact Research Ottmar Edenhofer Potsdam Institute for Climate Impact Research Mercator Research Institute on Global Commons and Climate Change Technische Universität Berlin Nico Bauer Potsdam Institute for Climate Impact Research
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article Common Pool Resource Management at the Extensive and Intensive Margins: Experimental Evidence Abstract Policies aimed at managing common pool resources (CPRs) often target only one decision margin, despite the fact that the social efficiency of resource use is determined along multiple decision margins. For example, limited entry fisheries and irrigated land retirement programs focus only on influencing the number of agents engaged in resource extraction (the extensive margin), but ignore the quantity extracted by each agent (the intensive margin). This research uses empirical evidence from a laboratory economics experiment to examine the efficiency of incentive-based policies in a two-stage CPR game. Participants in the first stage decide whether to enter the CPR and in the second stage entrants choose an intensity of CPR use. Policy treatments vary the incentives at the intensive and extensive margins of resource use in a situation where social efficiency can only be maximized in theory through a combination of intensive and extensive-margin policies. We find that observed rates of CPR entry tend to be higher than predicted by theory, while the intensity of resource use is lower than predicted across the range of policy treatments. Although intensive- and extensive-margin policies improve social welfare, policies that target a single margin tend to reduce efficiency by impacting the incentives along the other decision margin. This is particularly true with the extensive-margin policy, which leads to the highest intensity of CPR use by entrants and the lowest observed efficiency among the policy treatments. Common pool resources, Incentive-based policies, Laboratory experiment 4 2019 73 8 2 Environmental and Resource Economics 973 993 Q25 C91 C61 http://link.springer.com/10.1007/s10640-018-0283-3 text/html Abstract Jordan F. Suter Jordan.suter@colostate.edu Colorado State University Sam Collie samuel.brinton.collie@gmail.com University of California Santa Barbara Kent D. Messer messer@udel.edu University of Delaware Joshua M. Duke duke@udel.edu University of Delaware Holly A. Michael hmichael@udel.edu University of Delaware University of Delaware
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article Intergenerational Discounting with Intragenerational Inequality in Consumption and the Environment Abstract It is now established that the consumption discount rate is determined by the growth of consumption multiplied by the elasticity of marginal utility, but distributive concerns are rarely reflected in the literature. Assuming a social welfare function with inequality aversion, we consider a consumption discount rate that can be decomposed into the growth effect and the intragenerational distribution effect. The framework is then extended to include population change and inequality in the environment as an amenity in a utility with constant elasticity of substitution. Numerical examples illustrate that distributional effects turn non-negligibly negative, that may reduce consumption discount rate by 1–3% for plausible parameters, once distribution is adjusted for both population and the environment. Discounting, Income distribution, Intragenerational equity, Climate change 4 2019 73 8 1 Environmental and Resource Economics 957 972 http://link.springer.com/10.1007/s10640-018-0282-4 text/html Abstract Rintaro Yamaguchi rintaro.yamaguchi@gmail.com National Institute for Environmental Studies (NIES)
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article Environmental Policy, Innovation, and Productivity Growth: Controlling the Effects of Regulation and Endogeneity Abstract We analyze the environmental regulation-productivity nexus and add to the literature in two main ways. First, shadow prices of energy and industrial energy prices are employed as relative measures of policy stringency. To ensure the robustness of the results, the model is also estimated for five alternative measures that have been applied in prior research. Second, we address the endogeneity of environmental regulation, innovation, and trade openness. A cross-country multi-sectoral dataset is utilized, including newly industrialized countries and former transition economies. The estimates show that the positive effects of increases in environmental policy stringency on productivity, which have often been reported in the more recent studies, change to mainly insignificant effects once simultaneity is controlled for. Hence, no support for the strong Porter Hypothesis can be found. Instead, stricter environmental regulation fosters innovation and, therefore, has an indirect, yet not decisive, positive effect on productivity growth. Environmental regulation, Productivity growth, Innovation, Shadow prices, Energy prices, Endogeneity 4 2019 73 8 15 Environmental and Resource Economics 1315 1355 http://link.springer.com/10.1007/s10640-018-0300-6 text/html Abstract Erik Hille Erik.Hille@hhl.de HHL Leipzig Graduate School of Management Patrick Möbius Patrick.Moebius@hhl.de HHL Leipzig Graduate School of Management
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article Exploitation of a Mobile Resource with Costly Cooperation Abstract Localized rights to common pool resources such as territorial use rights fisheries are a widely used class of management tools. However, the effectiveness of different designs of localized rights remains relatively unexplored, especially when one considers strategic interactions within and across patches in a metapopulation. Using a conceptual model of a system of localized fishing rights over each patch, we demonstrate how the interplay between the spatial distribution of rights and biological and strategic spillovers map into outcomes. Specifically, we show how accounting for endogenous costs to cooperative exploitation within a patch alters the conclusions derived from models that assume sole ownership within each patch. Moreover, we demonstrate how strategic interactions between patches can cause the costs to cooperative exploitation in any given patch to increase. These results highlight the complex political-economy dimensions that are important to consider in the design and evaluation of localized property rights in fisheries governance and elsewhere. Bioeconomics, Communal management, Cooperation, Game theory, Property rights, Small scale fisheries, Spatial externalities, Spillovers, Territorial use rights fisheries (TURFs) 4 2019 73 8 9 Environmental and Resource Economics 1135 1163 C72 Q22 http://link.springer.com/10.1007/s10640-018-0294-0 text/html Abstract Gabriel S. Sampson gsampson@ksu.edu Kansas State University James N. Sanchirico jsanchirico@ucdavis.edu University of California Resources for the Future
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article Panic-Based Overfishing in Transboundary Fisheries Abstract This paper analyses sustainability of bilateral harvesting agreements in transboundary fisheries. Harvesting countries obtain public and private assessments regarding their stock of fish, and the stock experiences ecological changes. In addition to biological uncertainty, countries may face strategic uncertainty. A country that receives negative assessments about the current level of fish stock, may become ‘pessimistic’ about the assessment of the other coastal state, and this can ignite ‘panic-based’ overfishing. The paper examines the likelihood of overfishing and suggests a unique prediction about the possibility of abiding by bilateral fishing agreements. Conditions under which the outcome of the asymmetric-information model reduces to the symmetric-information game are discussed, and optimal policy instruments for intergovernmental management of the stock are offered. Regional Fisheries Management, Biological and strategic uncertainties, Equilibrium refinement, Global games, Risk dominance, Transboundary fishery, Ecological shifts 4 2019 73 8 14 Environmental and Resource Economics 1287 1313 Q22 Q28 C73 D82 D83 http://link.springer.com/10.1007/s10640-018-0299-8 text/html Abstract Sareh Vosooghi sareh.vosooghi@economics.ox.ac.uk University of Oxford
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article Did You Miss Something? Inattentive Respondents in Discrete Choice Experiments Abstract Stated preference practitioners are increasingly relying on internet panels to gather data, but emerging evidence suggests potential limitations with respect to respondent and response quality in such panels. We identify groups of inattentive respondents who have failed to watch information videos provided in the survey to completion. Our results show that inattentive respondents have a higher cost sensitivity, are more likely to have a small scale parameter, and are more likely to ignore the non-cost attributes. These results are largely driven by respondents failing to watch the information video about the discrete choice experiment, attributes and levels, which underlines the importance of information provision and highlights possible implications of inattentiveness. We develop a modeling framework to simultaneously address preference, scale and attribute processing heterogeneity. We find that when we consider attribute non-attendance—scale differences disappear, which suggests that the type of heterogeneity detected in a model could be the result of un-modeled heterogeneity of a different kind. We discuss implications of our results. Discrete choice experiments, Probabilistic decision process model, Latent class, Internet panels, Inattentive bias, Attribute non-attendance 4 2019 73 8 11 Environmental and Resource Economics 1197 1235 C25 H41 Q51 Q57 http://link.springer.com/10.1007/s10640-018-0296-y text/html Abstract Erlend Dancke Sandorf erlend.dancke.sandorf@slu.se Swedish University of Agricultural Sciences
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article The Price of Purity: Willingness to Pay for Air and Water Purification Technologies in Rajasthan, India Abstract Diarrheal illnesses and acute respiratory infections are among the top causes for premature death and disability across the developing world, and adoption of various technologies for avoiding these illnesses remains extremely low. We exploit data from a unique contingent valuation experiment to consider whether households in rural Rajasthan are unwilling to make investments in “domain-specific” environmental health technologies when faced with health risks in multiple domains. Results indicate that demand for water-related risk reductions is higher on average than demand for air-related risk reduction. In addition, households’ private health benefits from mitigating diarrheal (respiratory) disease risks are higher (no different) when community-level air pollution risks, rather than community-level water pollution risks, have previously been mitigated. This asymmetric response cannot fully be explained by survey order effects or embedding, but rather suggests that that the broader health environment and the salience of particular risks may be important in households’ decision to adopt environmental health technologies. Household air pollution, Diarrheal diseases, Technology adoption, Contingent valuation 4 2019 73 8 6 Environmental and Resource Economics 1073 1100 Q51 Q53 Q56 http://link.springer.com/10.1007/s10640-018-0290-4 text/html Abstract Alexandra K. Shannon ashannon@jhu.edu Johns Hopkins University Faraz Usmani faraz.usmani@duke.edu Duke University Subhrendu K. Pattanayak subhrendu.pattanayak@duke.edu Duke University Duke University Duke University Marc Jeuland marc.jeuland@duke.edu Duke University Duke University National University of Singapore RWI-Leibniz Institute, for Economic Research
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article Does Air Pollution Crowd Out Foreign Direct Investment Inflows? Evidence from a Quasi-natural Experiment in China Abstract This study investigates whether air pollution crowds out foreign direct investment in China. We use a regression discontinuity design based on the lower air pollution to the South of the Qinling Mountains–Huai River line because the government did not develop coal-based central heating networks there, contrary to north of the line. We observe that for every 1% increase in PM2.5 concentration, foreign direct investment flows decrease by 0.393%, and foreign direct investment stocks decrease by 0.015%. By tracing the potential mechanisms, we find that air pollution may exert a negative impact on foreign direct investment inflows through its impacts on the health risks of the labor force and health insurance spending of foreign firms. Huai River policy, Air pollution, Foreign direct investment, Regression discontinuity, Crowding-out effect, China 4 2019 73 8 17 Environmental and Resource Economics 1387 1414 F21 Q53 Q56 P28 http://link.springer.com/10.1007/s10640-019-00329-8 text/html Abstract Weibing Li lwbhust@163.com Huazhong University of Science and Technology Kaixia Zhang 3538810878@qq.com Huazhong University of Science and Technology
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article Altruism and Global Environmental Taxes Abstract A global externality like the GHG emissions leading to climate change are both due to free-riding at the individual level as well as the government level. A government aiming to maximise domestic social welfare may make individuals internalise the damage within their country, but will free-ride on the damage caused to other countries. Only a global cooperative solution could internalise global damage entirely. If individuals have altruistic concern for others but continue to believe that their consumption is negligible relative to the total, they will not change their behaviour. However, this paper shows that in a multi-country setting the global equilibrium levels of consumption for both the non-cooperative and cooperative solutions are affected by altruism. The key results are (a) that non-cooperative governments maximising domestic welfare will internalise some of the damage inflicted on other countries depending on the level of altruistic concern individuals have, and (b) the cooperative global optimum also changes as altruism leads individuals to effectively experience damage in other countries as well as the direct damage to them. Since altruistic concern for others may vary across countries, global welfare then becomes a function of the relative levels of altruistic concern between countries. Altruism, Climate change, Environmental economics, Environmental tax, Externalities, Pro-social behaviour, Public goods 4 2019 73 8 5 Environmental and Resource Economics 1049 1072 Q50 Q58 D11 D90 http://link.springer.com/10.1007/s10640-018-0287-z text/html Abstract Marc Daube University of St Andrews
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article Uncertainty, Learning and International Environmental Agreements: The Role of Risk Aversion Abstract This paper analyses the formation of international environmental agreements (IEAs) under uncertainty, learning and risk aversion. It bridges two strands of the IEA literature: (i) the role of learning when countries are risk neutral; (ii) the role of risk aversion under no learning. Combining learning and risk aversion seems appropriate as the uncertainties surrounding many international environmental problems are large, often highly correlated (e.g. climate change), but are gradually reduced over time through learning. The paper analyses three scenarios of learning. A key finding is that risk aversion can change the ranking of these three scenarios of learning in terms of welfare and membership. In particular, the negative conclusion about the role of learning in a strategic context under risk neutrality is qualified. When countries are significantly risk averse, then it pays them to wait until uncertainties have been largely resolved before joining an IEA. This may suggest why it has been so difficult to reach an effective climate change agreement. International environmental agreements, Uncertainty, Learning and risk aversion, Game theory 4 2019 73 8 10 Environmental and Resource Economics 1165 1196 C72 D62 D80 Q54 http://link.springer.com/10.1007/s10640-018-0295-z text/html Abstract Alistair Ulph alistair.ulph@manchester.ac.uk The University of Manchester Pedro Pintassilgo ppintas@ualg.pt University of Algarve Michael Finus michael.finus@uni-graz.at University of Graz University of Bath
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article Active Learning and Optimal Climate Policy Abstract This paper develops a climate-economy model with uncertainty, irreversibility, and active learning. Whereas previous papers assume learning from one observation per period, or experiment with control variables to gain additional information, this paper considers active learning from investment in monitoring, specifically in improved observations of the global mean temperature. We find that the decision maker invests a significant amount of money in climate research, far more than the current level, in order to increase the rate of learning about climate change. This helps the decision maker make improved decisions. The level of uncertainty decreases more rapidly in the active learning model than in the passive learning model with only temperature observations. As the uncertainty about climate change is smaller, active learning reduces the optimal carbon tax. The greater the risk, the larger is the effect of learning. The method proposed here is applicable to any dynamic control problem where the quality of monitoring is a choice variable, for instance, the precision at which we observe GDP, unemployment, or the quality of education. Climate policy, Irreversibility, Uncertainty, Learning, Active learning 4 2019 73 8 12 Environmental and Resource Economics 1237 1264 Q54 O3 C63 http://link.springer.com/10.1007/s10640-018-0297-x text/html Abstract In Chang Hwang ichwang@si.re.kr The Seoul Institute Richard S. J. Tol University of Sussex VU University Amsterdam VU University Amsterdam Tinbergen Institute CESifo Marjan W. Hofkes VU University Amsterdam VU University Amsterdam
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article Responding to Risky Neighbors: Testing for Spatial Spillover Effects for Defensible Space in a Fire-Prone WUI Community Abstract Often, factors that determine the risk of an environmental hazard occur at landscape scales, and risk mitigation requires action by multiple private property owners. How property owners respond to risk mitigation on neighboring lands depends on whether mitigation actions are strategic complements or strategic substitutes. We test for these neighbor interactions with a case study on wildfire risk mitigation on private properties. We use two measures of wildfire risk mitigation—an assessment by a wildfire professional and a self-assessment by homeowners. Taken together, the two assessments provide the first empirical explanation for strategic complements in wildfire risk mitigation and a more complete picture of how homeowners respond to this landscape-scale risk. We find homeowners that mitigate risk on their land are more likely to have neighbors that do the same, and homeowners that fail to mitigate risk are more likely to have neighbors that fail to do so as well. Due to spatial spillovers, motivating a few key residents to take action could reduce risk across the landscape. WUI, Neighbor effects, Spatial spillovers, Wildfire, Defensible space, Endogenous risk 4 2019 73 8 4 Environmental and Resource Economics 1023 1047 http://link.springer.com/10.1007/s10640-018-0286-0 text/html Abstract Travis Warziniack twwarziniack@fs.fed.us USFS Rocky Mountain Research Station Patricia Champ pchamp@fs.fed.us USFS Rocky Mountain Research Station James Meldrum jmeldrum@usgs.gov US Geological Survey Hannah Brenkert-Smith hannahb@colorado.edu University of Colorado – Boulder Christopher M. Barth cbarth@blm.gov Bureau of Land Management Lilia C. Falk wrwc.lilia@gmail.com West Region Wildfire Council
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article Nutrition and Climate Policies in the European Union: Friends or Enemies? Abstract The European Union (EU) Green Deal and its Farm to Fork Strategy are intended to promote sustainable food systems to achieve EU climate-neutrality by 2050. The Farm to Fork action plan also foresees the introduction of a harmonized mandatory front-of-pack nutrition labelling scheme in 2023. The EU countries have yet to reach agreement on the nutrition labelling scheme, which will also have environmental impacts. This article raises the question of whether at the European level, countries should seek agreements on both climate mitigation and nutrition policies (full agreement as in the case of the Green Deal) or should negotiate separate climate and nutrition policy agreements (as for the nutritional labelling). To address this question, this paper develops a game-theoretic model with multiple countries where each country implements a climate policy and a nutrition policy. We compare the consequences in terms of total emissions, the level of the nutrition policy and the welfare under different institutional arrangements of a non-cooperative equilibrium, full agreement, and three alternative agreements. Our results show in particular that full agreement always leads to the lowest total emissions at the expense of the level of nutrition policy in some cases. In an extension of our analysis, we show that agreements that include cooperation over nutrition policies do not necessarily imply formation of a larger coalition of signatory countries, even if a nutrition policy has positive or negative impacts on emissions. Climate mitigation, Climate policy, Nutrition policy, Healthy diets, Cooperation, Agreement 4 2023 86 12 4 Environmental and Resource Economics 807 849 C71 C72 D62 H41 I18 http://link.springer.com/10.1007/s10640-023-00815-0 text/html Abstract Basak Bayramoglu basak.bayramoglu@inrae.fr Université Paris-Saclay, INRAE, AgroParisTech, PSAE Jean-François Jacques ERUDITE (EA 437), Université Gustave Eiffel Sylvaine Poret INRAE
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article Willingness-to-Pay for Energy Efficiency: Evidence from the European Common Market Abstract This paper explores the willingness-to-pay for energy efficiency by exploiting variation across products and countries within the EU market for household appliances. Based on scanner data at product-level, I use the hedonic method to estimate implicit prices for energy efficiency and derive implicit discount rates. The paper argues that the implicit price will be underestimated when energy consumption is not only a determinant of operating cost but also is positively associated with other features of a product. The empirical analysis confirms that estimates of the willingness-to-pay are higher when this effect is accounted for in the estimation. This is especially true of product types for which the heterogeneity of usage intensity is low. The results thus indicate that the energy efficiency gap is smaller than found in earlier studies. Energy efficiency, Hedonic prices, Implicit discount rate, Energy efficiency gap, Household appliances, White goods 4 2023 86 12 6 Environmental and Resource Economics 893 945 Q41 H23 D12 http://link.springer.com/10.1007/s10640-023-00819-w text/html Abstract Anne Kesselring anne.kesselring@isi.fraunhofer.de University of Erlangen-Nuremberg (FAU) Fraunhofer Institute for System and Innovation Research (ISI)
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article Stated Preferences with Survey Consequentiality and Outcome Uncertainty: A Split Sample Discrete Choice Experiment Abstract Stated preference studies are often based on the assumptions that proposed outcomes would realize with certainty and respondents believe their survey responses are consequential. This paper uses split sample treatments to test whether survey consequentiality and outcome uncertainty lead to differences in welfare measures, focusing on a discrete choice experiment on improving quality of electricity supply among business enterprises in Tanzania. Our results show that incorporating uncertainty not only affects the preferences for the attribute with uncertainty (duration of power outage) but also for a choice attribute with a precautionary feature (advanced outage notification). While outcome uncertainty and an additional survey script (a formal letter from a state-owned electric utility) to strengthen consequentiality have some influence on preferences and willingness to pay (WTP) estimates for certain attributes, we do not find significant implications on overall welfare estimates. Stated preferences, Survey consequentiality, Outcome uncertainty, Discrete choice experiment, Power outages, Business enterprises, Tanzania 4 2023 86 12 1 Environmental and Resource Economics 717 754 D22 D81 L94 Q58 http://link.springer.com/10.1007/s10640-023-00810-5 text/html Abstract Tensay Hadush Meles tensay.hadushmeles@esri.ie Economic and Social Research Institute Trinity College Dublin Razack Lokina University of Dar es Salaam Erica Louis Mtenga University of Dar es Salaam Julieth Julius Tibanywana University of Dar es Salaam
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article Will Temperature Changes in the Host Country Reduce the Inflow of International Direct Investment? Micro Evidence from Chinese Listed Companies Abstract With the ever-increasing global temperatures, the long-term climate change trend has become an essential part of global investor strategies. Before dealing with the reduction of international direct investment caused by climate change, governments and enterprises should clarify the causal relationship between temperature change and international direct investment, as well as the impact mechanism. This paper empirically examines the impact of host country temperature changes on the probability and scale of international direct investment inflows using data on Chinese enterprises’ foreign direct investment and the temperature of each host country from 2009 to 2019. The results show that a 1% increase in host country temperature decreases the probability of Chinese firms’ FDI inflows by 5.92% and reduces the size of FDI by 2.60%. The host country’s temperature change has a cumulative effect on inhibiting Chinese enterprises’ direct investment. The mechanism analysis shows that high temperatures increase the number of meteorological disasters, causing economic losses and reducing economic growth rates, which in turn inhibit direct investment from China. The negative effect of host country temperature change on firms’ location choice for international investment is more significant in manufacturing, non-state, and low R&D investment firms. Temperature change, Foreign direct investment, Location selection, Meteorological hazards 4 2023 86 12 3 Environmental and Resource Economics 781 806 http://link.springer.com/10.1007/s10640-023-00812-3 text/html Abstract Yanyan Ouyang ouyangyy2004@163.com Sun Yat-Sen University Chuanwang Sun cw_sun@foxmail.com Xiamen University Xiamen University Nanchang University Xiaonan Wei weixiaofai@126.com China University of Geosciences (Beijing) Chuangyu Xie xiechy25@mail3.sysu.edu.cn Sun Yat-Sen University
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article Mosquitoes and Potatoes: How Local Climatic Conditions Impede Development Abstract The historical diffusion of the potato in the Old World serves as an example of the contribution of technological innovations to socio-economic growth and development (Nunn and Qian in Q J Econ 126(2):593–650, 2011). Climate-related diseases, on the other hand, might offset some of these benefits. Here we examine the long-term impact of malaria on the potato-driven growth of the population and urbanization in the Old World during the 18th and 19th centuries. We exploit local variations in environmental suitability both for potato and for malaria transmission to estimate and compare the impact of potato cultivation on population and urbanization in highly endemic to non-endemic areas at a high level of spatial disaggregation. We show that local climate conditions ideal for malaria transmission counteracted the potential benefits of introducing the potato to the Old World, which are conversely found to be strong and positive in non-endemic regions. These results highlight the interplay between technological change, public health, and development outcomes. Technological innovation, Population, Public health, Urbanization, Malaria, Development 4 2023 86 12 5 Environmental and Resource Economics 851 892 http://link.springer.com/10.1007/s10640-023-00818-x text/html Abstract Maurizio Malpede maurizio.malpede@univr.it University of Verona Giacomo Falchetta International Institute for Applied Systems Analysis Soheil Shayegh RFF-CMCC European Institute for Economics and the Environment
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article The Effect of Natural Disasters on Hotel Demand, Supply and Labour Markets: Evidence from the La Palma Volcano Eruption Abstract Natural disasters are an important deterrent factor for tourism activities from both supply and demand perspectives. This paper studies the short-term effect of a volcano eruption on hotel demand, supply and hospitality labour in La Palma (Spain), an island economy that is highly dependent on the tourism sector. Based on a monthly panel dataset, we employ seemingly unrelated difference-in-differences (SUR-DiD) to identify the distinct responses of these three outcomes both during and post eruption. We are particularly interested in examining the asymmetry in their elasticities to the shock, which serve as indicators of disaster resilience. Potential spillover effects on nearby islands are also examined. We find that the eruption resulted in significant yet asymmetrical drops in international demand, number of hotels opened, and hospitality workers hired. Our findings inform about the resilience of the tourism industry to natural disasters, offering relevant insights about heterogeneous effects depending on exposure to the event. Natural disasters, Tourism-led economy, Resilience, Recovery from disaster 4 2023 86 12 2 Environmental and Resource Economics 755 780 R11 R23 Z30 http://link.springer.com/10.1007/s10640-023-00811-4 text/html Abstract Veronica Leoni veronica.leoni3@unibo.it University of Bologna University of the Balearic Islands David Boto-García botodavid@uniovi.es University of Oviedo
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article Correction to: Trade, Transport Emissions and Multimarket Collusion with Border Adjustments 4 2023 86 12 7 Environmental and Resource Economics 947 947 http://link.springer.com/10.1007/s10640-023-00823-0 text/html Abstract Shiva Sikdar shivasikdar@gmail.com Keele Business School, Keele University
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article A Latent Class Nested Logit Model for Rank-Ordered Data with Application to Cork Oak Reforestation Abstract We analyze stated ranking data collected from recreational visitors to the Alcornocales Natural Park (ANP) in Spain. The ANP is a large protected area which comprises mainly cork oak woodlands. The visitors ranked cork oak reforestation programs delivering different sets of environmental (reforestation technique, biodiversity, forest surface) and social (jobs and recreation sites created) outcomes. We specify a novel latent class nested logit model for rank-ordered data to estimate the distribution of willingness-to-pay for each outcome. Our modeling approach jointly exploits recent advances in discrete choice methods. The results suggest that prioritizing biodiversity would increase certainty over public support for a reforestation program. In addition, a substantial fraction of the visitor population are willing to pay more for the social outcomes than the environmental outcomes, whereas the existing reforestation subsidies are often justified by the environmental outcomes alone. Discrete choice, Stated preference, Willingness-to-pay, Forest, Land use 4 2017 68 12 9 Environmental and Resource Economics 1021 1051 C33 C35 C51 Q23 Q51 Q57 http://link.springer.com/10.1007/s10640-016-0058-7 text/html Abstract José L. Oviedo Consejo Superior de Investigaciones Cientficias (CSIC) Hong Il Yoo h.i.yoo@durham.ac.uk Durham University
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article Combining Revealed Preference Data with Stated Preference Data: A Latent Class Approach Abstract A substantial literature exists combining data from revealed preference (RP) and stated preference (SP) sources, aimed either at testing for the convergent validity of the two approaches used in nonmarket valuation or as a means of drawing on their relative strengths to improve the ultimate estimates of value. In doing so, it is assumed that convergence of the two elicitation approaches is an “all or nothing” proposition; i.e., the RP and SP data are either consistent with each other or they are not. The purpose of this paper is to propose an alternative framework that allows for possible divergence among individuals in terms the consistency between their RP and SP responses. In particular, we suggest the use of a latent class approach to segment the population into two groups. The first group has RP and SP responses that are internally consistent, while the remaining group exhibits some form of inconsistent preferences. An EM algorithm is employed in an empirical application that draws on the Alberta and Saskatchewan moose hunting data sets used in earlier combined RP and SP exercises. The empirical results suggest that somewhere between one-third and one-half the sample exhibits consistent preferences. We also examine differences in welfare estimates drawn from the two classes. Nonmarket valuation, Stated preference, Revealed preference, Latent class 4 2017 68 12 10 Environmental and Resource Economics 1053 1086 http://link.springer.com/10.1007/s10640-016-0060-0 text/html Abstract Hocheol Jeon Iowa State University Joseph A. Herriges jah@msu.edu Michigan State University
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article Auctioning Risky Conservation Contracts Abstract Conservation auctions have the potential to increase the efficiency of payments to farmers to adopt conservation-friendly management practices by fostering competition among them. The literature considers bidders that have complete information about the costs of adoption and optimal bidding behavior reflects this information advantage. Farmers seek information rents and bids decrease when risk aversion increases because farmers are more averse to losing the auction. We contribute to the literature by allowing for cost risk. Our paper shows that farmers must balance the risk of losing the auction (thus foregoing information rent) with the risk of submitting a bid that is not high enough to pay the costs of adopting conservation practices (thus incurring losses). We design an experiment to trade off these two risks and examine how risk aversion affects bidding behavior when participants face different sources and levels of risk. Our experiment contributes to a small literature on experimental auctions with risky product valuations. We find that participants decrease their bids as risk aversion increases, even in auctions with cost risk, suggesting that the risk of losing the auction dominates. These findings uncover new challenges for the practical implementation of conservation auctions as an efficient policy instrument. Beneficial management practices, Cost risk, Environmental goods and services, Experiments, Reverse auctions, Risk aversion 4 2017 68 12 12 Environmental and Resource Economics 1111 1144 http://link.springer.com/10.1007/s10640-016-0063-x text/html Abstract Bruno Wichmann bwichmann@ualberta.ca University of Alberta Peter Boxall pboxall@ualberta.ca University of Alberta Scott Wilson scott.wilson@ualberta.ca University of Alberta Orsolya Pergery operger@ualberta.ca University of Alberta
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article Pricing Monitoring Uncertainty in Climate Policy Abstract This article assesses the environmental and economic efficiency of three different approaches to treat monitoring uncertainty in climate policy, namely prescribing uncertainty, setting minimum certainty thresholds and pricing uncertainty through a discount. Our model of the behavior of profit-maximizing agents demonstrates that under the simplest set of assumptions the regulator has no interest in reducing monitoring uncertainty. However, in the presence of information asymmetry, monitoring uncertainty may hamper the economic and environmental performance of climate policy due to adverse selection. In a mandatory policy, prescribing a reasonable level of uncertainty is preferable if the regulator has enough information to determine this level. For voluntary mechanisms, such as carbon offsets, allowing agents to set their own monitoring uncertainty below a maximum threshold or discounting carbon revenues in proportion to monitoring uncertainty are the best approaches for the regulator to mitigate the negative effects of information asymmetry. These conclusions are much more pronounced when agents do not accrue revenues from their mitigation action, other than carbon. Our analysis of monitoring uncertainty under information asymmetry, which results in heterogeneity in the agents’ benefits from abatement, generalizes the classical trade-off between production efficiency and information rents. Adverse selection, Climate policy, Information asymmetry, Monitoring, Uncertainty 4 2017 68 12 6 Environmental and Resource Economics 949 974 http://link.springer.com/10.1007/s10640-016-0055-x text/html Abstract Valentin Bellassen valentin.bellassen@dijon.inra.fr Univ. Bourgogne Franche-Comté Igor Shishlov igor.shishlov@i4ce.org I4CE - Institute for Climate Economics CIRED (Centre International de Recherche sur l’Environnement et le Développement), CIRAD
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article Greenhouse Gas Abatement Cost Curves of the Residential Heating Market: A Microeconomic Approach Abstract In this paper, we develop a microeconomic approach to deduce greenhouse gas abatement cost curves of the residential heating sector. Our research is based on a system dynamics microsimulation of private households’ investment decisions for heating systems to the year 2030. By accounting for household-specific characteristics, we investigate the welfare costs of different abatement policies in terms of the compensating variation and the excess burden. We investigate two policies: (i) a carbon tax and (ii) subsidies on heating system investments. We deduce abatement cost curves for both policies by simulating welfare costs and greenhouse gas emissions to the year 2030. We find that (i) welfare-based abatement costs are generally higher than pure technical equipment costs; (ii) given utility maximizing households a carbon tax is the most welfare-efficient policy and; (iii) if households are not utility maximizing, a subsidy on investments may have lower marginal greenhouse gas abatement costs than a carbon tax. Greenhouse gas abatement costs, Heat market, Household behavior, Pigou tax 4 2017 68 12 5 Environmental and Resource Economics 915 947 C35 C61 Q47 Q53 R21 http://link.springer.com/10.1007/s10640-016-0052-0 text/html Abstract Caroline Löffler c.loeffler.de@gmail.com University of Cologne (EWI) Harald Hecking Harald.Hecking@googlemail.com University of Cologne (EWI)
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article The Effects of Electricity Costs on Firm Re-location Decisions: Insights for the Pollution Havens Hypothesis? Abstract Electricity costs are partly driven by environmental policy choices. In this paper, the effects of variations in electricity costs—as measured by end-user electricity prices–on firm relocation decisions are investigated. Using a discrete choice model and a data base that has not previously been exploited to study this problem, we investigate the effects of variations in electricity costs on the intensive and extensive re-location decisions of European firms. We find that electricity costs play a significant role in determining relocation destinations. This effect is asymmetric between firms moving into and out of a country, and between high and low energy intensity sectors. The findings of the paper have implications for the Pollution Havens Hypothesis, since they show the extent to which the effects of climate policy on domestic electricity costs can be expected to impact on firm relocation decisions both into and out of a country. Firm re-location, Energy costs, Pollution Havens Hypothesis, Climate policy, Carbon leakage 4 2017 68 12 4 Environmental and Resource Economics 893 914 D22 F18 Q41 Q52 http://link.springer.com/10.1007/s10640-016-0051-1 text/html Abstract Matthew Panhans matthew.panhans@duke.edu Duke University Lucia Lavric lucia@encompassecon.com Encompass Economics Nick Hanley ndh3@st-andrews.ac.uk University of St Andrews
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article Adaptation to Climate Change: Commitment and Timing Issues Abstract We study the impact of timing and commitment on adaptation and mitigation policies in the context of international environmental problems. Adaptation policies present the characteristics of a private good and may require a prior investment, while mitigation policies produce a public good. In a stylized model, we evaluate the impact of strategic commitment and leadership considerations when countries with different attitudes towards environmental cooperation coexist. We obtain equilibrium abatement and adaptation levels and environmental costs under partial cooperation for various timing and leadership scenarios. Crucially, global environmental costs suffered by countries are found to be greater when adaptation measures can be used strategically. Adaptation, Climate change, Leadership, Mitigation, Strategy, Timing 4 2017 68 12 7 Environmental and Resource Economics 975 995 http://link.springer.com/10.1007/s10640-016-0056-9 text/html Abstract Michèle Breton michele.breton@hec.ca HEC Montréal Lucia Sbragia Durham University Business School
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article A Minimax Regret Analysis of Flood Risk Management Strategies Under Climate Change Uncertainty and Emerging Information Abstract This paper studies the dynamic application of the minimax regret (MR) decision criterion to identify robust flood risk management strategies under climate change uncertainty and emerging information. An MR method is developed that uses multiple learning scenarios, for example about sea level rise or river peak flow development, to analyse effects of changes in information on optimal investment in flood protection. To illustrate the method, optimal dike height and floodplain development are studied in a conceptual model, and conventional and adaptive MR solutions are compared. A dynamic application of the MR decision criterion allows investments to be changed after new information on climate change impacts, which has an effect on today’s optimal investments. The results suggest that adaptive MR solutions are more robust than the solutions obtained from a conventional MR analysis of investments in flood protection. Moreover, adaptive MR analysis with multiple learning scenarios is more general and contains conventional MR analysis as a special case. Minimax regret, Flood risk, Climate change, Adaptive management, Flexibility, Robust optimisation, Learning 4 2017 68 12 11 Environmental and Resource Economics 1087 1109 http://link.springer.com/10.1007/s10640-016-0062-y text/html Abstract T. D. Pol t.d.van.der.pol@cpb.nl Netherlands Bureau for Economic Policy Analysis S. Gabbert silke.gabbert@wur.nl Wageningen University H.-P. Weikard hans-peter.weikard@wur.nl Wageningen University E. C. Ierland ekko.vanierland@wur.nl Wageningen University E. M. T. Hendrix eligius.hendrix@wur.nl E.T.S.I. Informática, Campus de Teatinos
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article Sad or Happy? The Effects of Emotions on Stated Preferences for Environmental Goods Abstract A substantial literature in behavioural science and psychology shows that emotions affect human choices and values. This paper investigates whether such emotional impacts are also present in stated choice experiments for environmental goods. If this were so, it would introduce an additional element of context dependence to the welfare measures derived from such methods, and would be at odds with the rational choice model underlying welfare economics. A laboratory experiment using three different emotion treatments was combined with a stated preference choice experiment concerned with changes in coastal water quality and fish populations in New Zealand. No statistically significant effects of changes in emotional state on estimated preference parameters, willingness to pay or the randomness of choices were found. The paper concludes by questioning, why such a contrast exists with empirical findings in behavioural science. Choice experiments, Behavioral economics, Environmental valuation, Emotions, Cost-benefit analysis 4 2017 68 12 1 Environmental and Resource Economics 821 846 Q51 Q57 D03 D87 http://link.springer.com/10.1007/s10640-016-0048-9 text/html Abstract Nick Hanley ndh3@st-andrews.ac.uk University of St Andrews Christopher Boyce University of Stirling Mikołaj Czajkowski University of Warsaw Steve Tucker University of Waikato Charles Noussair University of Arizona Michael Townsend National Institute for Water and Atmosphere Ltd
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article What Are the Benefits of the Water Framework Directive? Lessons Learned for Policy Design from Preference Revelation Abstract The Water Framework Directive (WFD) seeks to achieve good ecological status of surface waters across the European Union by 2027. The WFD guidelines explicitly recognize the economics of water management by providing exceptions to water areas with disproportionately high restoration costs. This calls indirectly for estimations of benefits lost due to non-attainment. We employ a hedonic property pricing approach on waterfront recreational properties to estimate the welfare impacts of attaining the good ecological status described by the WFD. The empirical challenge is that the quality measure proposed by the WFD specifically denotes ecological quality, whereas economically measurable water quality values are heavily dependent on recreation impacts. Intuitively, the choice of water quality measure should have an effect on estimating the value of water quality. Our data provide a unique chance to compare three alternative indicators of water quality: (1) a usability-based index, (2) subjectively reported measure and (3) the ecological status determined by the WFD. We find that an improvement in water quality is associated with a statistically significant, non-linear change in recreational property values. We show how the ecological status compares with the other two indicators, and discuss the justifiability of using revealed preference methods when the valued good is defined purely on the basis of ecological criteria. Hedonic price method, Water quality, Environmental amenities, Valuation, Waterfront properties 4 2017 68 12 2 Environmental and Resource Economics 847 873 Q51 Q53 Q26 http://link.springer.com/10.1007/s10640-016-0049-8 text/html Abstract Janne Artell Natural Resources Institute Finland (Luke) Anni Huhtala anni.huhtala@vatt.fi VATT Institute for Economic Research
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article Supplementing Domestic Mitigation and Adaptation with Emissions Reduction Abroad to Face Climate Change Abstract In this paper we focus on a long-term dynamic analysis of the optimal adaptation/mitigation mix in the presence of a pollution threshold above which adaptation is no longer efficient. We account for accumulation in abatement capital, greenhouse gases, and adaptation capital in order to better capture the arbitrage between abatement and adaptation investments. Pollution damages arise from the emissions due to the country consumption but also from the emissions of the rest of the world (ROW). A pollution threshold is then introduced, above which adaptation is no longer efficient. We obtain that if this threshold is lower than the steady-state level of pollution, there is no way for the modelled economy to avoid it. In particular, such a situation will appear if the ROW’s emissions are high. We then show that CDM may be a means to avoid a pollution threshold above which adaptation becomes of no use. Climate change, Mitigation, Adaptation, CDM, Pollution threshold Q5, Q52, Q56, Q58 4 2017 68 12 3 Environmental and Resource Economics 875 891 http://link.springer.com/10.1007/s10640-016-0050-2 text/html Abstract Alain Ayong Le Kama Université Paris Ouest-Nanterre la Défense Aude Pommeret aude.pommeret@cityu.edu.hk City University of Hong Kong IREGE-University of Savoie
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article Distance Decay in the Willingness to Pay for Wine: Disentangling Local and Organic Attributes Abstract This paper investigates how the residents of a French wine-producing region value the attributes of wine. We elicit the willingness-to-pay (WTP) for organic/non-organic and local/non-local wines with increasing levels of information on the impact of agricultural practices at both global and local scales. The analysis shows that there is a significant organic premium associated with both local and non-local wines. This organic premium significantly increases with information and significantly decreases with the distance between the consumer’s home and the vineyard. Based on the econometric predictions of the WTP, we show that a per-unit tax on non-organic wines or a standard imposing organic practices increases welfare through the internalization of the attributes revealed by the experiment. Organic premium, Local premium, Experimental economics, Wine demand 4 2017 68 12 8 Environmental and Resource Economics 997 1019 http://link.springer.com/10.1007/s10640-016-0057-8 text/html Abstract Jean-Sauveur Ay jsay@dijon.inra.fr Université Bourgogne Franche Comté Raja Chakir raja.chakir@agroparistech.fr Université Paris-Saclay Stephan Marette stephan.marette@agroparistech.fr Université Paris-Saclay
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article Optimum Growth and Carbon Policies with Lags in the Climate System Abstract We study the optimal carbon tax in an economy in which climate change, stemming from polluting non-renewable resource, affects the economy’s growth potential. Our main contribution is to introduce and explore the natural time lag of the climate system between emissions and damages to capital accumulation in an endogenous growth setting. This allows us to investigate how optimal climate policy, and its interplay with climate dynamics, affect long-run growth and the transition of the economy towards it. Without pollution decay, a higher speed of emissions diffusion steepens the growth profile of the economy. With pollution decay, this leads to lower short-run but higher long-run economic growth during transition. Poor understanding of the emissions diffusion process leads to suboptimal carbon taxes, resource extraction and growth. Climate policy, Non-renewable resource dynamics, Pollution diffusion lag, Optimum growth 4 2018 70 8 4 Environmental and Resource Economics 781 806 Q54 O11 Q52 Q32 http://link.springer.com/10.1007/s10640-017-0153-4 text/html Abstract Lucas Bretschger lbretschger@ethz.ch CER-ETH Center of Economic Research at ETH Zurich Christos Karydas karydasc@ethz.ch CER-ETH Center of Economic Research at ETH Zurich
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article Does a Recession Call for Less Stringent Environmental Policy? A Partial-Equilibrium Second-Best Analysis Abstract This paper analyses second-best optimal environmental policy responses to real and financial shocks in a two-period partial equilibrium model with heterogeneous firms, an environmental externality, and credit constraints. We show that, to alleviate credit constraints and encourage investment, the second-best optimal emission tax falls short of marginal emission damages. The optimal response to shocks depends on how the shock affects the size of the environmental and credit market failures and the effectiveness of the tax in alleviating these market failures. Under mildly restrictive assumptions on functional forms, the optimal response to a (persistent) negative productivity shock or a tightening of credit is to reduce the emission tax. Our results are informative for how climate change policy should optimally change with the business cycle. Credit constraints, Credit shock, Second-best optimal emission tax, Productivity shock 4 2018 70 8 5 Environmental and Resource Economics 807 834 http://link.springer.com/10.1007/s10640-017-0157-0 text/html Abstract Inge M. Bijgaart inge.van.den.bijgaart@economics.gu.se University of Gothenburg Sjak Smulders Tilburg University
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article Taking Time for the Environment: On Timing and the Role of Delays in Environmental and Resource Economics Abstract Ecosystem transformation and climate change evolve over long time scales. The effects of the economic decisions on the natural environment are also of a long-run character because they relate to investment decisions and capital stocks. At the same time, the economy is short-sighted and subject to different kinds of market failures. The time it takes to notice the changes and adequately address the associated problems affects the dynamics and inertia of the process. We discuss some recent contributions and new research questions that deal with time and timing in environmental and resource economics. Time, Inertia, Environmental policy, Climate change, Decision delay 4 2018 70 8 1 Environmental and Resource Economics 731 736 Q20 Q32 Q54 http://link.springer.com/10.1007/s10640-017-0175-y text/html Abstract Lucas Bretschger lbretschger@ethz.ch CER-ETH Centre of Economic Research at ETH Zurich Sjak Smulders j.a.smulders@uvt.nl Tilburg University
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article Modeling Nonrenewable Resources Use with Multiple Demands and Multiple Sources Abstract The theoretical literature following Hotelling (J Polit Econ 39:137–175, 1931) assumed that all nonrenewable resource needs are satisfied by one type of resource (e.g. “oil”), extractible at different per-unit costs. This formulation implicitly assumes that all users are the same distance from each resource pool, that all users can switch costlessly from one type of resource to another (e.g. liquid fossil fuels to coal or vice-versa), and that all users are subject to the same regulations. These assumptions imply, as Herfindahl (Extractive resources and taxation. University of Wisconsin Press, Madison, pp 63–90, 1967) showed, that in competitive equilibrium all users will exhaust a lower-cost resource completely before beginning to extract a higher-cost resource: simultaneous extraction of different grades of oil or of oil and coal should never occur. In trying to apply the single-demand curve model during the last twenty years, several teams of authors have independently found a need to generalize it to account for users differing in their (1) location, (2) resource needs, or (3) regulatory environment. Each research team found that Herfindahl’s strong, unrealistic conclusion disappears in the generalized model; in its place, a weaker Herfindahl result emerges. Since each research team focussed on a different application, however, it has not always been clear that everyone has been describing the same generalized model. The goal in this paper is to integrate the findings of these teams and to present an easily accessible generalization of the nonrenewable resource model to multiple demand curves. Nonrenewable resources, Hotelling model, Multiple demands 4 2018 70 8 2 Environmental and Resource Economics 737 755 http://link.springer.com/10.1007/s10640-016-0003-9 text/html Abstract Gérard Gaudet gerard.gaudet@umontreal.ca Université de Montréal Stephen W. Salant ssalant@umich.edu University of Maryland University of Michigan Resources for the Future (RFF)
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article Moving Toward Greener Societies: Moral Motivation and Green Behaviour Abstract I provide an alternative explanation for why societies exhibit varied environmental behaviours. I use a Kantian moral approach at a microeconomic level. I show that two identical societies (in terms of income level and political system) might follow different paths with respect to their “green” behaviour. Additionally, I identify tipping points that could nudge a society from a polluting behaviour to a green one. I find that the perception of environment within the society can be an important factor in this shift. Green behaviour, Kantian morale, Moral motivation, Tipping points 4 2018 70 8 6 Environmental and Resource Economics 835 860 C62 D64 D72 H41 Q50 http://link.springer.com/10.1007/s10640-017-0167-y text/html Abstract Lorenzo Cerda Planas lorenzo.cerda@gmail.com University of Paris 1 Panthéon - Sorbonne
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article Green Attitude and Economic Growth Abstract We analyze the interdependence between green attitude and equilibrium development of environmental quality in an endogenous growth model. Individuals take only part of their impact on pollution into account, hence there is a negative externality of capital accumulation on environmental quality. Increasing wealth or increasing pollution enhance green attitude and reduce the externality, because individuals care more about the environment if their income is higher or if pollution is more obvious. The time path of pollution as well as the evolution of equilibrium growth are shown to depend crucially on the determinants of green attitude. Ongoing growth may lead to complete internalization of the environmental externality if green attitude improves with increasing wealth, e.g. as a consequence of an increase in environmental education. In contrast, if green attitude is determined exclusively by the level of environmental quality, pollution remains at a suboptimally high level. The interdependence of wealth and pollution in the determination of environmental awareness implies more complex dynamics. Capital growth enhances green attitude and thereby decreases pollution. Improved environmental quality in turn may increase capital growth due to less green attitude and therefore slow down convergence to the sustainable balanced growth path. Pollution, Endogenous growth, Green attitude 4 2018 70 8 3 Environmental and Resource Economics 757 779 O1 O4 Q2 Q5 http://link.springer.com/10.1007/s10640-016-0061-z text/html Abstract Ingrid Ott ingrid.ott@kit.edu Karlsruhe Institute of Technology Kiel Institute for the World Economy Susanne Soretz soretz@uni-greifswald.de University of Greifswald
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article Killing Two Birds with One Stone? Green Dead Ends and Ways Out of the COVID-19 Crisis Abstract The coronavirus crisis has opened up a window of opportunity for transformation. This should be used without getting off the regulatory track. Green recovery programs must not be reduced to a mere competition for green subsidies. Abandoning barriers to green investments and imposing a carbon price are equally important. Where economically sensible, green subsidies should contribute both to stabilizing the economy and mitigating climate change. Moreover, smart green recovery programs may contribute to raising revenues for the additionally necessary public expenditures. Climate change, Coronavirus, Recovery, Subsidies Environmental and Resource Economics 1 5 http://link.springer.com/10.1007/s10640-020-00443-y text/html Abstract Erik Gawel Helmholtz Centre for Environmental Research – UFZ University of Leipzig Paul Lehmann paul.lehmann@ufz.de Helmholtz Centre for Environmental Research – UFZ University of Leipzig
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article Building a Social Mandate for Climate Action: Lessons from COVID-19 Abstract The COVID-19 imposed lockdown has led to a number of temporary environmental side effects (reduced global emissions, cleaner air, less noise), that the climate community has aspired to achieve over a number of decades. However, these benefits have been achieved at a massive cost to welfare and the economy. This commentary draws lessons from the COVID-19 crisis for climate change. It discusses whether there are more sustainable ways of achieving these benefits, as part of a more desirable, low carbon resilient future, in a more planned, inclusive and less disruptive way. In order to achieve this, we argue for a clearer social contract between citizens and the state. We discuss how COVID-19 has demonstrated that behaviours can change abruptly, that these changes come at a cost, that we need a ‘social mandate’ to ensure these changes remain in the long-term, and that science plays an important role in informing this process. We suggest that deliberative engagement mechanisms, such as citizens’ assemblies and juries, could be a powerful way to build a social mandate for climate action post-COVID-19. This would enable behaviour changes to become more accepted, embedded and bearable in the long-term and provide the basis for future climate action. Behaviour change, Climate change, COVID-19, Deliberative governance, Social mandate Environmental and Resource Economics 1 9 http://link.springer.com/10.1007/s10640-020-00446-9 text/html Abstract Candice Howarth c.howarth@lse.ac.uk London School of Economics and Political Science Peter Bryant Shared Future Adam Corner Climate Outreach Sam Fankhauser London School of Economics and Political Science Andy Gouldson University of Leeds Lorraine Whitmarsh Cardiff University Rebecca Willis Lancaster University
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article In the Name of COVID-19: Is the ECB Fuelling the Climate Crisis? Abstract We offer preliminary evidence drawing on a novel dataset of corporate bonds issued in the European energy sector since January 2020 in combination with the European Central Bank’s (ECB) purchases under the Pandemic Emergency Purchase Programme (PEPP) in response to COVID-19. We show that the likelihood of a European energy company bond to be bought as part of the ECB’s programme increases with the greenhouse gas (GHG) intensity of the bond issuing firm. We also find weaker evidence that the ECB’s PEPP portfolio during the pandemic is likely to become tilted towards companies with anti-climate lobbying activities and companies with less transparent GHG emissions disclosure. Our findings imply that, at later stages of the COVID-19 recovery, an in-depth analysis may be necessary to understand if, and if yes why, the ECB fuelled the climate crisis. Green economic recovery, Climate finance, Fossil fuels, Green central banking Environmental and Resource Economics 1 7 Q50 Q58 http://link.springer.com/10.1007/s10640-020-00450-z text/html Abstract T. F. Cojoianu theodor.cojoianu@ucd.ie University College Dublin Oxford University Queen’s University Belfast, Riddel Hall E. Collins edward.collins@influencemap.org InfluenceMap A. G. F. Hoepner andreas.hoepner@ucd.ie University College Dublin European Commission Technical Expert Group on Sustainable Finance Stockholm School of Economics, Mistra Financial Systems (MFS) D. Magill danny.magill@influencemap.org InfluenceMap T. O’Neill thomas.oneill@influencemap.org InfluenceMap F. I. Schneider fabiola.schneider@ucdconnect.ie University College Dublin
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article Pandemics and the Environmental Rebound Effect: Reflections from COVID-19 Abstract The irruption of the COVID-19 pandemic has raised concerns on sustainability issues. The pandemic has accelerated the implementation of technologies such as ICT and shifts in mobility behaviour. Such changes have the potential to reduce environmental burdens, but also to trigger large environmental rebound effects. This perspective article reflects on some emerging concerns on the socio-economic effects of a pandemic on the environment from a rebound effect perspective. Although the pandemic offers potential to improve the environmental conditions, it brings also a high risk to produce Jevons’ Paradox, i.e., increase environmental burdens rather than decrease them, as initially expected. Governments should be aware of these risks and assess the possibility to implement additional measures, like environmental taxation or limiting the use of resources, to help achieving sustainability targets. COVID-19, Pandemic, Rebound effect, Sustainability Environmental and Resource Economics 1 4 http://link.springer.com/10.1007/s10640-020-00448-7 text/html Abstract Jaume Freire-González jfreire@ent.cat ENT Foundation David Font Vivanco 2.-0 LCA Consultants
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article Disease Risk from Human–Environment Interactions: Environment and Development Economics for Joint Conservation-Health Policy Abstract Emergence of COVID-19 joins a collection of evidence that local and global health are influenced by human interactions with the natural environment. Frameworks that simultaneously model decisions to interact with natural systems and environmental mechanisms of zoonotic disease spread allow for identification of policy levers to mitigate disease risk and promote conservation. Here, we highlight opportunities to broaden existing conservation economics frameworks that represent human behavior to include disease transmission in order to inform conservation-disease risk policy. Using examples from wildlife markets and forest extraction, we call for environment, resource, and development economists to develop and analyze empirically-grounded models of people’s decisions about interacting with the environment, with particular attention to LMIC settings and ecological-epidemiological risk factors. Integrating the decisions that drive human–environment interactions with ecological and epidemiological research in an interdisciplinary approach to understanding pathogen transmission will inform policy needed to improve both conservation and disease spread outcomes. Bats, Deforestation, Disease, Fragmentation, Land use, Pathogen spillover, Wildlife markets, Zoonoses Environmental and Resource Economics 1 16 http://link.springer.com/10.1007/s10640-020-00449-6 text/html Abstract Heidi J. Albers jo.albers@uwyo.edu University of Wyoming Katherine D. Lee University of Idaho Jennifer R. Rushlow University of Wyoming Carlos Zambrana-Torrselio EcoHealth Alliance
oai:RePEc:kap:enreec:v:76:y:2020:i:1:d:10.1007_s10640-020-00415-22020-05-22RePEc:kap:enreec
article No Man is an Island: Social Coordination and the Environment Abstract Humans are fundamentally social. Social activities require coordination, possibly leading to multiple equilibria in the form of self-reinforcing patterns of herd behavior. When alternative equilibria differ substantially with respect to environmental damage, they represent virtuous and vicious cycles from an environmental perspective. Such cycles can be sustained by network effects, social pressure to conform, or other mechanisms directly or indirectly yielding coordination benefits. Breaking the vicious cycles can be an important task for environmental policies. I present a stylized model of social coordination with environmental externalities, using it to discuss how environmental policies may help agents coordinate in more environment-friendly ways. Environmental policy, Multiple equilibria, Social interaction, Tipping points 1 2020 76 5 10 Environmental and Resource Economics 177 193 D10 D62 D91 Q01 Q50 Q58 http://link.springer.com/10.1007/s10640-020-00415-2 text/html Abstract Karine Nyborg karine.nyborg@econ.uio.no University of Oslo
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article Commitment Versus Discretion in Climate and Energy Policy Abstract To decarbonize the power sector, policy-makers need to commit to long-term credible rules for climate and energy policy. Otherwise, risk of opportunistic policy-making will impair investments into low-carbon technologies. However, the future benefits and costs of decarbonization are subject to substantial uncertainties. Thus, there may also be societal gains from allowing policy-makers the discretion to adjust the policies as new information becomes available. We examine how this trade-off between policy commitment—either unconditional or state-contingent—and discretion affects the optimal intertemporal design of market-based instruments in the power sector. Using a dynamic partial equilibrium model, we show that commitment to a state-contingent level of ambition for the market-based instrument leads to higher welfare than both unconditional commitment and discretion. With benefit uncertainty, the choice between the practically more feasible approaches of unconditional commitment and discretion is analytically ambiguous. A basic numerical illustration suggests that policy discretion may outperform unconditional commitment in terms of welfare. However, this result is reversed when only a limited fraction of benefit uncertainty resolves in reasonable time, when future policy-makers have own agendas, or when investors are risk-averse. With cost uncertainty, policy discretion is welfare-superior if the government can commit to a technology deployment target. Climate change, Public policy, Subsidies, Renewable energy, Uncertainty, Commitment, Hold-up 1 2020 76 5 5 Environmental and Resource Economics 39 67 H23 Q42 Q48 Q54 Q58 http://link.springer.com/10.1007/s10640-020-00414-3 text/html Abstract Florian Habermacher florian.habermacher@unisg.ch University of St. Gallen University of Oxford Aurora Energy Research Paul Lehmann lehmann@wifa.uni-leipzig.de University of Leipzig Helmholtz Centre for Environmental Research – UFZ
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article Adoption of Environment-Friendly Agricultural Practices with Background Risk: Experimental Evidence Abstract Agriculture is one of the economic sectors most exposed to exogenous risks such as climate hazards and price volatility on agricultural markets. Agricultural policies targeting the adoption of environment-friendly but potentially risk-increasing practices cannot ignore this challenge. Farmers have indeed to decide if they take the foreground risk associated with the adoption of environment-friendly practices, while simultaneously facing exogenous background risk beyond their control. Using a theoretical model and a public good experiment, we analyse the adoption of agri-environmental practices and the effect of agri-environmental subsidies in a context where risks are both foreground and background. While most of the literature on background risk focuses on its impact on individual decisions, we analyse the influence of background risk in a context of strategic uncertainty (contribution to a public good). The results highlight the potential synergies between greening the CAP and supporting risk management. We find that background risk discourages the adoption of green practices, although it affects all farmland independently from the farmer’s choice of practices (environment friendly or conventional). An incentive payment per hectare of land farmed with green practices increases the adoption of risk-increasing practices but is significantly less effective in the presence of background risk. Common agricultural policy, Agri-environmental measures, Background risk, Lab experiment, Risk aversion, Public good game Environmental and Resource Economics 1 24 C93 D81 Q18 Q12 http://link.springer.com/10.1007/s10640-020-00431-2 text/html Abstract Marianne Lefebvre marianne.lefebvre@univ-angers.fr Université d′Angers Estelle Midler Osnabrück University Philippe Bontems University of Toulouse Capitole
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article Can the Threat of Economic Sanctions Ensure the Sustainability of International Fisheries? An Experiment of a Dynamic Non-cooperative CPR Game with Uncertain Tipping Point Abstract Complex dynamic systems such as common-pool resource systems can undergo a critical shift at a given threshold, the so-called tipping point, which potentially requires substantial changes from the management system. We present in this research a framed laboratory experiment design to examine how the threat of economic sanctions influences the strategic management of a common-pool resource. We use the context of the East Atlantic bluefin tuna international fishery as it has been the archetype of an overfished and mismanaged fishery until a dramatic reinforcement of its regulations followed the threat of a trade ban. We consider endogenous threats and examine their effects on cooperation through harvest decisions taken in the context of non-cooperative game theory in which cooperation could be sustained using a trigger strategy. Our experiment results show that the threat of economic sanctions fosters more cooperative behaviors, less over-exploitation, and a more precautionary management of resources, reducing the economic rent dissipation. This result is exacerbated when the location of the tipping point that triggers the economic sanction is uncertain. In order to avoid free-riding behaviors and foster the emergence of a self-enforcing agreement, we suggest to introduce economic sanctions, such as trade restrictions, associated with uncertain biological limit reference points. Common-pool resources, Experimental economics, Fisheries management, International fisheries, Policy making, Tipping points 1 2020 76 5 9 Environmental and Resource Economics 153 176 http://link.springer.com/10.1007/s10640-020-00419-y text/html Abstract Selles Jules jules.selles@gmail.com Muséum national d’histoire naturelle, UMR BOREA 7208 Bonhommeau Sylvain IFREMER Délégation de l’Océan Indien Guillotreau Patrice Université de Nantes, IEMN-IAE Vallée Thomas Université de Nantes, IEMN-IAE
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article The Environmental Impacts of the Coronavirus Abstract The Covid-19 coronavirus pandemic has resulted in global lockdowns, sharply curtailing economic activity. It is a unique experiment with substantial impacts that will form the agenda for research. There are five sets of questions: the short-term impacts on emissions, the natural environment and environmental policy, including regulations and COP26; longer-term consequences from the deployment of macroeconomic monetary and fiscal stimuli, and investment in green deals; possible further deglobalisation and its impact on climate change and nature; intergenerational environmental impacts including debt and pollution burdens on future generations; and possible behavioural changes to the environment, both positive and negative. Climate change, Coronavirus, Deglobalisation, Economic shock, Greenhouse gas emissions, Lockdown, Pandemic 1 2020 76 5 4 Environmental and Resource Economics 21 38 http://link.springer.com/10.1007/s10640-020-00426-z text/html Abstract Dieter Helm Dieter@dhelm.co.uk New College
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article Climate Change and Recreation: Evidence from North American Cycling Abstract There is extensive research documenting the economic consequences of climate change, yet our understanding of climate impacts on nonmarket activities remains incomplete. Here, we investigate the effect of weather on recreation demand. Using data from 27 million bicycle trips in 16 North American cities, we estimate how outdoor recreation responds to daily weather fluctuations. We find empirically that cyclists dislike cold temperatures much more than hot temperatures, suggesting potential gains from warming. However, the overall response to extreme heat is mitigated, in part, by intraday adaptation towards recreating during cooler times of day. Combining these estimates with time-use survey data and climate projections, our models suggest annual surplus gains of $894 million from climate-induced cycling by mid-century. Leisure demand, Outdoor recreation, Climate change, Adaptation, Nonmarket damages, Time allocation 1 2020 76 5 8 Environmental and Resource Economics 119 151 J22 Q54 R49 http://link.springer.com/10.1007/s10640-020-00420-5 text/html Abstract Nathan W. Chan nchan@umass.edu University of Massachusetts Amherst Casey J. Wichman wichman@uchicago.edu University of Chicago Energy Policy Institute at the University of Chicago Resources for the Future
oai:RePEc:kap:enreec:v:76:y:2020:i:1:d:10.1007_s10640-020-00421-42020-05-22RePEc:kap:enreec
article Estimating Power Sector Leakage Risks and Provincial Impacts of Canadian Carbon Pricing Abstract Carbon pricing systems have emerged in Canada at provincial and federal levels to reduce CO2 emissions. However, cross-border electricity trade with the U.S. is already extensive, and although Canada is currently a net exporter, policy changes could alter these trade dynamics. Since CO2 emissions are currently unregulated in many U.S. states, there is a concern that this incomplete regulatory coverage will lead to emissions leakage, as electric generation and emissions shift toward these unregulated regions. This paper examines potential power sector emissions leakage and distributional implications across provinces from Canadian carbon pricing. Using an integrated model of electric sector investments and operations with detailed spatial and temporal resolutions, the analysis demonstrates how emissions leakage through trade adjustments can be non-trivial fractions of the intended emissions reductions even in the presence of leakage containment measures. Magnitudes of long-run leakage rates from Canadian carbon pricing depend on market and policy assumptions (e.g., natural gas prices, projected load growth, long-run demand elasticities, timing of future U.S. CO2 policy), ranging from 13% (high gas price scenario with border carbon adjustments) to 76% (lower gas price scenario without antileakage measures), which are higher than reported literature values for national policies. When leakage containment measures are implemented, net emissions and leakage rates decrease, but gross emissions in Canada and policy costs increase. Leakage persists in alternate scenarios with constrained transmission expansion, higher natural gas prices, lower load growth, higher price elasticities of demand, and U.S. adoption of carbon pricing, but leakage rates decrease under these conditions. Climate policy, Economic geography, Emissions leakage, Energy-economic modeling, Market integration, Trade 1 2020 76 5 7 Environmental and Resource Economics 91 118 F18 L94 Q28 Q42 Q48 http://link.springer.com/10.1007/s10640-020-00421-4 text/html Abstract John E. T. Bistline jbistline@epri.com Electric Power Research Institute James Merrick Geal Research Victor Niemeyer Niemeyer Solutions
oai:RePEc:kap:enreec:v:76:y:2020:i:1:d:10.1007_s10640-020-00416-12020-05-22RePEc:kap:enreec
article Worshipping the Tiger: Modeling Non-use Existence Values of Wildlife Spiritual Services Abstract Several indigenous tribes around the world derive spiritual value from revering fauna and flora species. Species conservation is not a prime objective of such traditions but can be an unintended consequence. Conventional species conservation practices ignore this spiritual value and tribes are often evicted from protected areas. We use the existence value framework to develop a coupled ecological-economic model of the use and non-use, existence values of wildlife for a tribe that derives spiritual value from a wildlife population. We calibrate the model for the Biligiri Rangaswamy Temple (BRT) Tiger Reserve in India with the resident Soligas tribe who consider tigers as sacred and back out an existence value of tigers in this reserve from a tribe manager’s perspective. The model ascertains tiger population dynamics under several management scenarios. Steady-state convergence is observed under secure property rights for the Soligas. Scenarios in which they are evicted from the BRT reserve and lose their property rights yields localized tiger extinction. Finally, we generate a marginal existence value function and discuss the potential for using existence value estimates in guiding conservation policy. Tiger, Public goods, Existence value, Conservation, Bioeconomic model Q20, Q51, Q57, C61 1 2020 76 5 6 Environmental and Resource Economics 69 90 http://link.springer.com/10.1007/s10640-020-00416-1 text/html Abstract Adrian A. Lopes alopes@aus.edu American University of Sharjah Shady S. Atallah Shadi.Atallah@unh.edu University of New Hampshire
oai:RePEc:kap:enreec:v:76:y:2020:i:1:d:10.1007_s10640-020-00418-z2020-05-22RePEc:kap:enreec
article EAERE Award for the Best Paper Published in Environmental and Resource Economics During 2019 Abstract We present details of the EAERE Award for the Best Paper Published in Environmental and Resource Economics During 2019 together with those Highly Commended papers published during this period. EAERE award, Best paper, Published in environmental and resource economics, 2019 1 2020 76 5 3 Environmental and Resource Economics 17 19 http://link.springer.com/10.1007/s10640-020-00418-z text/html Abstract Phoebe Koundouri pkoundouri@aueb.gr Athens University of Economics and Business Astrid Dannenberg dannenberg@uni-kassel.de University of Kassel Ian J. Bateman I.Bateman@exeter.ac.uk University of Exeter Business School
oai:RePEc:kap:enreec:v:76:y:2020:i:1:d:10.1007_s10640-020-00427-y2020-05-22RePEc:kap:enreec
article Editorial: EAERE, ERE and the Research Challenges of the Coronavirus Pandemic 1 2020 76 5 1 Environmental and Resource Economics 1 5 http://link.springer.com/10.1007/s10640-020-00427-y text/html Abstract Ian J. Bateman i.bateman@exeter.ac.uk University of Exeter Business School (UEBS) Paul Neetzow paul.neetzow@hu-berlin.de Humboldt-Universität Zu Berlin Klaus Eisenack klaus.eisenack@hu-berlin.de Humboldt-Universität Zu Berlin Georg Meran Technische Universität Berlin
oai:RePEc:kap:enreec:v:76:y:2020:i:1:d:10.1007_s10640-020-00422-32020-05-22RePEc:kap:enreec
article The EAERE Celebrates Its 30th Anniversary Abstract The European Association of Environmental and Resource Economists started around 1990 and celebrates its 30th anniversary this year. The rise of environmental concerns and the wish for more cooperation between scientists within Europe, plus the drive of a few highly motivated people, led to the foundation of this academic institution. This article aims at clarifying the initial steps and the development of this highly successful association. The relationship between economics and the environment is core for the future of our world, and the EAERE was crucial in developing this field. The EAERE has been a stimulus and a home for many scientists who were interested to work in this field and who would otherwise have been quite isolated. The future of the EAERE is bright if it manages to bridge new developments in economics and in the natural sciences, and between academics and policy. EAERE, Environmental economics, Resource economics 1 2020 76 5 2 Environmental and Resource Economics 7 16 http://link.springer.com/10.1007/s10640-020-00422-3 text/html Abstract Aart Zeeuw A.J.deZeeuw@uvt.nl Tilburg University Royal Swedish Academy of Sciences
oai:RePEc:kap:enreec:v:74:y:2019:i:2:d:10.1007_s10640-019-00353-82019-09-19RePEc:kap:enreec
article Welfare Analysis of Government Subsidy Programs for Fuel-Efficient Vehicles and New Energy Vehicles in China Abstract To address energy security and environmental problems, the Chinese government has issued various subsidy programs for fuel-efficient vehicles and new energy vehicles (NEVs). This paper investigates the effectiveness and welfare consequences of (1) the vehicle and vessel usage tax incentive (VVUT-incentive), (2) the fuel-efficient vehicle subsidy program (FEV-subsidy program), and (3) the NEV private purchase subsidy pilot program (NEV-subsidy program). From car registration data for Shanghai, Changchun, Hangzhou, Hefei, and Shenzhen from 2011 to 2012, we estimate a random coefficient discrete choice model and conduct a counterfactual analysis based on the estimated parameters. The empirical findings suggest that these policies promote the diffusion of fuel-efficient vehicles and NEVs and improve fleet fuel efficiency. However, the VVUT-incentive and FEV-subsidy program increase oil consumption and CO2 emissions. Although the NEV-subsidy program decreases gas consumption, it increases CO2 emissions. We also show that the VVUT-incentive and FEV-subsidy program improve welfare conditions. However, the NEV-subsidy program compromises social welfare, as losses of government revenue exceed consumer surplus gains. Environmental effects, Fuel-efficient vehicles, Government subsidies, New energy vehicles, Welfare consequences 2 2019 74 10 17 Environmental and Resource Economics 911 937 L5 L91 Q4 Q5 http://link.springer.com/10.1007/s10640-019-00353-8 text/html Abstract Ziying Yang Southwestern University of Finance and Economics Manping Tang tangmp.sicau@gmail.com Sichuan Agricultural University
oai:RePEc:kap:enreec:v:74:y:2019:i:2:d:10.1007_s10640-019-00339-62019-09-19RePEc:kap:enreec
article Climate Change Interactions with Agriculture, Forestry Sequestration, and Food Security Abstract Climate change can negatively affect crop productivity decreasing food production in many regions across the world. Literature suggests forest carbon sequestration (FCS) is a good alternative to mitigate climate change due to its ability to sequester carbon at low cost. Nevertheless, FCS subsidies have not been addressed together with impacts on food security and climate change reduced crop yields. In our multidisciplinary work, we collected the crop yield shocks from global circulation—crop modeling. We also developed a new version of a computable general equilibrium model for the economic analysis. Thus, we evaluate the global economic impacts of using carbon taxes and FCS to achieve 50% emission reductions. We find that implementing an aggressive FCS incentive can cause substantial increases in food prices because of land competition between forest and crop production. Without climate induced yield reductions, FCS is attractive, but not with the yield reductions. With the climate induced yield shocks, food price increases are huge—so large that it is clear this approach could not be adopted in the real world. The results cry out for investment in agricultural research on climate adaptation. Our findings suggest economic well-being falls more without mitigation than with 50% emission reductions. Forestry, Carbon sequestration, Food security, General equilibrium, Climate change, Crop yield, Mitigation methods 2 2019 74 10 6 Environmental and Resource Economics 653 675 http://link.springer.com/10.1007/s10640-019-00339-6 text/html Abstract Luis Moisés Peña-Lévano lpenalevano@ufl.edu University of Florida Farzad Taheripour Purdue University Wallace E. Tyner Purdue University
oai:RePEc:kap:enreec:v:74:y:2019:i:2:d:10.1007_s10640-019-00340-z2019-09-19RePEc:kap:enreec
article Economic Impacts of Climate Change on Vegetative Agriculture Markets in Israel Abstract We integrate the combined agricultural production effects of forecasted changes in CO2, temperature and precipitation into a multi-regional, country-wide partial equilibrium positive mathematical programming model. By conducting a meta-analysis of 2103 experimental observations from 259 agronomic studies we estimate production functions relating yields to CO2 concentration and temperature for 55 crops. We apply the model to simulate climate change in Israel based on 15 agricultural production regions. Downscaled projections for CO2 concentration, temperature and precipitation were derived from three general circulation models and four representative concentration pathways, showing temperature increase and precipitation decline throughout most of the county during the future periods 2041–2060 and 2061–2080. Given the constrained regional freshwater and non-freshwater quotas, farmers will adapt by partial abandonment of agriculture lands, increasing focus on crops grown in controlled environments at the expense of open-field and rain-fed crops. Both agricultural production and prices decline, leading to reduced agricultural revenues; nevertheless, production costs reduce at a larger extent such that farming profits increase. As total consumer surplus also augments, overall social welfare rises. We find that this outcome is reversed if the positive fertilization effects of increased CO2 concentrations are overlooked. Adaptation, Agriculture, Climate change, CO2 fertilization, Meta-analysis, Positive mathematical programming, Production Function, Israel 2 2019 74 10 8 Environmental and Resource Economics 679 696 http://link.springer.com/10.1007/s10640-019-00340-z text/html Abstract Rotem Zelingher The Hebrew University of Jerusalem Andrea Ghermandi University of Haifa Enrica Cian Ca’ Foscari University of Venice Centro Euro-Mediterraneo sui Cambiamenti Climatici (CMCC) Malcolm Mistry Ca’ Foscari University of Venice Centro Euro-Mediterraneo sui Cambiamenti Climatici (CMCC) Iddo Kan iddo.kan@mail.huji.ac.il The Hebrew University of Jerusalem The Hebrew University of Jerusalem
oai:RePEc:kap:enreec:v:74:y:2019:i:2:d:10.1007_s10640-019-00350-x2019-09-19RePEc:kap:enreec
article Rushing the Impatient: Allowance Reserves and the Time Profile of Low-Carbon Investments Abstract Postponing the issue date of allowances in a cap-and-trade scheme, by e.g. a reserve mechanism, impacts the time profile of low-carbon investments. If the postponement constrains intertemporal arbitrage, short-term investments increase but long-term investments are deterred. This effect aggravates the shortage of long-term investments at least partially attributed to firms’ impatience. The cancellation of allowances agreed for Phase IV of the EU ETS is suitable to counteract the negative effects of cap-neutral postponement on long-term investments—by making the reserve redundant. All effects crucially depend on how firms form expectations about future allowance prices. Market stability reserve, Cap-and-trade, Low-carbon investments, EU ETS reform 2 2019 74 10 14 Environmental and Resource Economics 845 863 Q54 Q55 Q58 http://link.springer.com/10.1007/s10640-019-00350-x text/html Abstract Grischa Perino grischa.perino@uni-hamburg.de University of Hamburg Maximilian Willner University of Hamburg
oai:RePEc:kap:enreec:v:74:y:2019:i:2:d:10.1007_s10640-019-00347-62019-09-19RePEc:kap:enreec
article Environmental Policy and Induced Technological Change: Evidence from Automobile Fuel Economy Regulations Abstract This paper investigates whether environmental or energy-efficiency regulations induce innovations in relevant technologies through focusing on the tightening of Japanese fuel economy regulations in the 1990s and the early 2000s. Unlike previous studies that analyze patent data, I use vehicle-level specification data for 1985–2004 to estimate whether regulatory pressure accelerated technological progress in fuel efficiency. I compare Japanese automakers with selected American and European automakers in a difference-in-differences framework. The estimation results provide strong evidence for induced technological change: conditional on other vehicle attributes and the production cost, the regulatory tightening induced at least a 3–5% improvement in the average Japanese vehicle’s fuel economy relative to a counterfactual case with no regulatory change, an effect which would have taken at least 4–7 years to be realized with no pressure from fuel economy regulations or fuel prices. Vehicles, Fuel economy regulations, Induced innovation, Technological change 2 2019 74 10 12 Environmental and Resource Economics 785 810 L62 O30 Q48 Q55 Q58 http://link.springer.com/10.1007/s10640-019-00347-6 text/html Abstract Takahiko Kiso tkiso@abdn.ac.uk University of Aberdeen
oai:RePEc:kap:enreec:v:74:y:2019:i:2:d:10.1007_s10640-019-00351-w2019-09-19RePEc:kap:enreec
article Assessing the Role of Domestic Value Chains in China’s CO2 Emission Intensity: A Multi-Region Structural Decomposition Analysis Abstract China has been facing severe pressure in CO2 emissions mitigation. With production fragmentation among provinces inside China, domestic value chains (DVCs) have become increasingly important to both economic growth and CO2 emissions of the country. Thus greening domestic value chains is crucial for China to achieve its climate goal. A fundamental question behind this issue is to assess the role of DVCs in China’s emission intensity and quantify the underlying drivers. To this end, a multi-region structural decomposition analysis (MR-SDA) model is proposed in this study. A change in national emission intensity is explained by two divisions of effects, i.e. local effects and DVC effects. From a forward linkage perspective, this study further disentangles the DVC production links and captures its impact on emission intensity. Applying the proposed MR-SDA model to study China’s CO2 emission intensity change in 2002–2012 shows that the DVCs hindered further emission intensity reduction of China during this period. The main determinant was the deteriorated DVC forward linkages in the central and western regions of China. More detailed results and discussions are presented. CO2 emission intensity, Domestic value chains, China, Multi-region structural decomposition analysis 2 2019 74 10 15 Environmental and Resource Economics 865 890 http://link.springer.com/10.1007/s10640-019-00351-w text/html Abstract H. Wang wh@upc.edu.cn China University of Petroleum Institute for Energy Economics and Policy, China University of Petroleum Chen Pan chen_pan@outlook.com Nanjing University of Aeronautics and Astronautics P. Zhou China University of Petroleum Institute for Energy Economics and Policy, China University of Petroleum
oai:RePEc:kap:enreec:v:74:y:2019:i:2:d:10.1007_s10640-019-00343-w2019-09-19RePEc:kap:enreec
article Correction to: Climate Change Interactions with Agriculture, Forestry Sequestration, and Food Security This correction stands to correct the original article as the authors have provided the following corrections for Table 2, the corrected values (in billion of USD of welfare) are. 2 2019 74 10 7 Environmental and Resource Economics 677 678 http://link.springer.com/10.1007/s10640-019-00343-w text/html Abstract Luis Moisés Peña-Lévano lpenalevano@ufl.edu University of Florida Farzad Taheripour Purdue University Wallace E. Tyner Purdue University
oai:RePEc:kap:enreec:v:74:y:2019:i:2:d:10.1007_s10640-019-00336-92019-09-19RePEc:kap:enreec
article The Morbidity Costs of Air Pollution: Evidence from Spending on Chronic Respiratory Conditions Abstract Medical expenditures on respiratory ailments such as asthma and chronic obstructive pulmonary disease (COPD) exceed $75 billion annually in the US, and research demonstrates that exposure to air pollution can exacerbate symptoms from these diseases. How much of this spending is attributable to air pollution, and what are the welfare consequences of pollution-induced changes in expenditures? Despite the enormous scale of spending on respiratory diseases, there is little research in economics examining these questions related to morbidity. In this paper, we link household level data from the Medical Expenditure Panel Survey to concentrations of particulate matter across 23 US metropolitan areas for the years 1999–2003. Using an extensive set of fixed effects and an instrumental variables strategy, we find that a standard deviation increase in fine particulate matter increases spending on asthma and COPD by 12.7%. Our theoretical framing implies a lower bound willingness to pay for a reduction of this size that exceeds $9 billion annually. Medical expenditures, Particulate matter, Respiratory conditions, Defensive expenditures model 2 2019 74 10 3 Environmental and Resource Economics 571 603 I12 I18 Q51 Q53 http://link.springer.com/10.1007/s10640-019-00336-9 text/html Abstract Austin M. Williams austinmerrellwilliams@gmail.com University of Wisconsin-Madison Daniel J. Phaneuf dphaneuf@wisc.edu University of Wisconsin-Madison
oai:RePEc:kap:enreec:v:74:y:2019:i:2:d:10.1007_s10640-019-00345-82019-09-19RePEc:kap:enreec
article Unequal Vulnerability to Climate Change and the Transmission of Adverse Effects Through International Trade Abstract In this paper, we consider the unequal distribution of climate change damages in the world and we examine how the underlying costs can spread from a vulnerable to a non-vulnerable country through international trade. To focus on such indirect effects, we treat this topic in a North–South trade overlapping generations model in which the South is vulnerable to the damages entailed by global pollution while the North is not. We show that the impacts of climate change in the South can be sources of welfare loss for northern consumers in both the long and the short run. In the long run, an increase in the South’s vulnerability can reduce the welfare in the North economy even in the case in which it improves the terms of trade of the North. In the short run, the South’s vulnerability can also represent a source of intergenerational inequity in the North. Therefore, we emphasize the strong economic incentives for non-vulnerable—and a fortiori less vulnerable—economies to reduce the climate change damages on more vulnerable countries. International trade, Climate change, Heterogeneous damages, Overlapping generations 2 2019 74 10 10 Environmental and Resource Economics 727 759 F18 F43 O41 Q56 http://link.springer.com/10.1007/s10640-019-00345-8 text/html Abstract Karine Constant karine.constant@u-pec.fr Université Paris Est Marion Davin marion.davin@umontpellier.fr CEE-M, Univ. Montpellier, CNRS, INRA, Montpellier SupAgro
oai:RePEc:kap:enreec:v:74:y:2019:i:2:d:10.1007_s10640-019-00346-72019-09-19RePEc:kap:enreec
article Linking with Uncertainty: The Relationship Between EU ETS Pollution Permits and Kyoto Offsets Abstract Carbon offsets from the Kyoto Flexible Mechanisms can be used by firms in the EU Emissions Trading Scheme for compliance in lieu of EU allowances, making these carbon assets interchangeable. We offer an explanation of the price spread using a structural model of the price for Certified Emissions Reductions that combines three features: a limit for the use of Kyoto offsets within the EU ETS; a disconnect between the current price of offsets and their marginal cost of production for institutional reasons; and uncertainty about future supply and demand of offsets. Our model expresses the offset price as an average of the EU allowance price and an offset’s outside value, weighted by the probability of a binding import limit. Using a monthly series of the United Nation’s Clean Development Mechanism and Joint Implementation about offset supply and demand, we provide empirical support for our theory of offset price formation. Counterfactual simulations suggest that the price process is dominated by uncertainty. Emissions trading, Climate change, EU ETS, Kyoto, Linking 2 2019 74 10 11 Environmental and Resource Economics 761 784 http://link.springer.com/10.1007/s10640-019-00346-7 text/html Abstract Beat Hintermann b.hintermann@unibas.ch University of Basel Marc Gronwald mgronwald@abdn.ac.uk University of Aberdeen Business School
oai:RePEc:kap:enreec:v:74:y:2019:i:2:d:10.1007_s10640-019-00338-72019-09-19RePEc:kap:enreec
article Environmental Disasters and Electoral Cycle: An Empirical Analysis on Floods and Landslides in Italy Abstract The aim of this paper is to analyse potential drivers of land use policy, in the form of building permits issued in Italian provinces. We first derive testable implications on the basis of a standard political agency framework, augmented to account for the impact of past environmental disasters (floods, landslides and earthquakes) and for the relevance of “building permits intensive” sectors in determining voters’ support to an incumbent politician. We then perform an empirical analysis that tests theoretical predictions using a unique dataset covering Italy in the period 2001–2012. Our main conclusions show that the occurrence of floods and earthquakes decreases building permits, implying that a bad history in terms of these phenomena strengthens the importance of voters affected by past disasters. No corresponding evidence seems to emerge with reference to landslides. On the other hand, the relevance of the construction sector increases the number of building permits issued. Finally, when elections approach, the number of building permits issued grows, suggesting that incumbent politicians may distort land use policies in order to favour “brown” voters in periods close to elections. Catastrophic events, Land use, Uncertainty, Environmental policy, Risk, Natural disaster JEL Classification, H11, Q54, Q58 2 2019 74 10 5 Environmental and Resource Economics 625 651 http://link.springer.com/10.1007/s10640-019-00338-7 text/html Abstract Alessio D’Amato damato@economia.uniroma2.it University of Rome “Tor Vergata” Sustainability Environmental Economics and Dynamics Studies (SEEDS) - Research Centre Giovanni Marin Sustainability Environmental Economics and Dynamics Studies (SEEDS) - Research Centre University of Urbino “Carlo Bo” Andrea Rampa Sustainability Environmental Economics and Dynamics Studies (SEEDS) - Research Centre National Research Council of Italy
oai:RePEc:kap:enreec:v:74:y:2019:i:2:d:10.1007_s10640-019-00327-w2019-09-19RePEc:kap:enreec
article Bureaucratic Shirking, Corruption, and Firms’ Environmental Investment and Abatement Abstract Bureaucratic shirking and corruption are prevalent in developing countries. This paper presents a delegation model where a government authorizes an inspector to monitor a polluting firm. The inspector may shirk in monitoring and may accept bribery when discovering noncompliance. We distinguish between two types of environmentally friendly actions, emission abatement and investment to enhance abatement technology, and investigate how bureaucratic shirking and corruption affect firms’ incentives of taking these actions. A corruptible inspector exerts more effort in monitoring the firm (an effort-inducing effect) but fails to enforce environmental regulations when discovering noncompliance (a nonenforcement effect), compared to an (incorruptible) bureaucratic inspector. Moreover, the firm strategically makes more investment to reduce the corruptible inspector’s monitoring effort (a strategic effect on monitoring). We find that investment and abatement decrease when corruption becomes more widespread, only if the corruptible inspector has sufficiently small bargaining power. Moreover, the corruptible inspector’s higher bargaining power leads to higher investment and abatement. Corruption, Bureaucratic shirking, Emission abatement, Technological investment 2 2019 74 10 1 Environmental and Resource Economics 505 538 D73 Q5 http://link.springer.com/10.1007/s10640-019-00327-w text/html Abstract Fuhai Hong hongfh@gmail.com Lingnan University Nanyang Technological University Tat-How Teh tehtathow@u.nus.edu National University of Singapore
oai:RePEc:kap:enreec:v:74:y:2019:i:2:d:10.1007_s10640-019-00331-02019-09-19RePEc:kap:enreec
article Building Climate Coalitions on Preferential Free Trade Agreements Abstract In this paper we discuss the endogenous formation of climate coalitions in an issue-linkage regime. In particular, we propose a preferential free trade agreement on which a climate coalition should be built. The basic idea is that the gains of free trade can provide strong incentives for countries to join the coalition. As a framework, a multi-stage strategic trade model is employed in which each country may set an emission cap being effective on a permit market. In addition, a discriminatory import tariff may be imposed on dirty goods. However, at the heart of our approach is a preferential free trade arrangement among the members of a climate coalition leading to a favourable shift in the terms of trade. As a main result, trade liberalisation is found as an institution highly effective in building climate coalitions. In particular, the parametrical simulation of the model shows that participation in joint emission reduction is higher, consumption patterns are more environmentally friendly, and coalitional welfare is much more improved than in case of a single-issue environmental agreement. Climate change, International environmental agreements, Free trade, Issue linkage, Tradable permits, Strategic trade policy 2 2019 74 10 2 Environmental and Resource Economics 539 569 Q54 Q56 F18 F15 Q58 http://link.springer.com/10.1007/s10640-019-00331-0 text/html Abstract Thomas Kuhn thomas.kuhn@wirtschaft.tu-chemnitz.de Chemnitz University of Technology Radomir Pestow radomir.pestow@wirtschaft.tu-chemnitz.de Chemnitz University of Technology Anja Zenker anja.zenker@wirtschaft.tu-chemnitz.de Chemnitz University of Technology
oai:RePEc:kap:enreec:v:74:y:2019:i:2:d:10.1007_s10640-019-00349-42019-09-19RePEc:kap:enreec
article Preferences for Mitigation of the Negative Impacts of the Oil and Gas Industry in the Niger Delta Region of Nigeria Abstract We examine Nigerian preferences for the mitigation of negative impacts associated with oil and gas production using a discrete choice experiment. We analyse the data using a Bayesian ‘infinite mixtures’ model, which given its flexibility can approximate an array of existing model specifications including the mixed logit and finite mixture specifications. The application of this model to our data suggest multimodality in the marginal willingness to pay distributions associated with mitigation policy characteristics. Individuals are willing to pay for mitigation of negative impacts, but are not necessarily willing to trade-off very large increases in unemployment or poverty to achieve these benefits. Discrete choice experiment, Bayesian infinite mixture, Dirichlet process, Nigeria 2 2019 74 10 13 Environmental and Resource Economics 811 843 O13 Q34 C11 http://link.springer.com/10.1007/s10640-019-00349-4 text/html Abstract I. G. Ukpong University of Reading K. G. Balcombe University of Reading I. M. Fraser University of Kent F. J. Areal f.j.areal@reading.ac.uk University of Reading
oai:RePEc:kap:enreec:v:74:y:2019:i:2:d:10.1007_s10640-019-00337-82019-09-19RePEc:kap:enreec
article The Effect of Carbon Tax on Farm Income: Evidence from a Canadian Province Abstract British Columbia (BC) introduced North America’s first carbon tax in 2008. An analysis of the impact of the BC carbon tax is of interest to various stakeholders in the jurisdiction where the tax was implemented. Other Canadian provinces and other countries contemplating a carbon tax policy are looking for insights on how to optimize potential positive and negative consequences. Given that government agri-environmental policies often emphasize farm-level support and environmental performance, there is interest in understanding the farm-level impacts of the carbon tax. The effect of the BC carbon tax on farm income and related production cost variables is investigated. Panel data from 2000 to 2015 are analyzed using both tabular and econometric approaches of the difference-in-difference method. The results indicate that the carbon tax is associated with a decline in net farm income-to-receipts ratios ranging between 8 and 12 cents per dollar of farm receipts. The analysis for costs-to-receipts ratios suggest that the carbon tax is directly related to higher commercial feed costs, farm labour costs, interest costs, and depreciation costs. Results of the regression analysis indicate that all the carbon tax effects are highly statistically significant. These findings can inform policy discussions about carbon tax effects on farmers. Carbon tax, Farm-level impacts, Profitability, British Columbia 2 2019 74 10 4 Environmental and Resource Economics 605 623 C54 Q10 Q50 http://link.springer.com/10.1007/s10640-019-00337-8 text/html Abstract Edward Olale edward.olale@unb.ca University of New Brunswick Emmanuel K. Yiridoe emmanuel.yiridoe@dal.ca Dalhousie University Thomas O. Ochuodho thomas.ochuodho@uky.edu University of Kentucky Van Lantz vlantz@unb.ca University of New Brunswick
oai:RePEc:kap:enreec:v:74:y:2019:i:2:d:10.1007_s10640-019-00354-72019-09-19RePEc:kap:enreec
article For International Cap-and-Trade in Carbon Permits, Price Stabilization Introduces Secondary Free-Rider-Type Problems Abstract In this brief note (Without holding them responsible for errors, omissions, or interpretations, I am grateful for constructive comments on an earlier version of this note by Joseph Aldy, Severin Borenstein, Maureen Cropper, Carolyn Fischer, Meredith Fowlie, Lawrence Goulder, Geoffrey Heal, N. Gregory Mankiw, Michael Mehling, Gilbert Metcalf, Adele Morris, Ian Parry, William Pizer, Simon Quemin, Andrew Schein, Richard Schmalensee, E. Somanathan, Robert Stavins, David Victor, and Gernot Wagner.), I take the initial allocation of carbon emissions as a prototype international public goods problem. Overcoming the free-rider problem in carbon emissions is central to a successful comprehensive international climate-change agreement. Volunteerism alone may go part way, but is unlikely to fully adequately overcome this free-rider problem. (The numerical values of the pledged “Nationally Determined Contributions” under the Paris Agreement are voluntary, although the Paris Agreement itself may help constructively by laying a legal foundation for participation, reporting, verification, transparency, and trust.) Climate change, International agreements, Cap-and-trade 2 2019 74 10 18 Environmental and Resource Economics 939 942 http://link.springer.com/10.1007/s10640-019-00354-7 text/html Abstract Martin L. Weitzman mweitzman@harvard.edu Harvard University
oai:RePEc:kap:enreec:v:74:y:2019:i:2:d:10.1007_s10640-019-00352-92019-09-19RePEc:kap:enreec
article Greening the South Africa’s Economy Could Benefit the Food Sector: Evidence from a Carbon Tax Policy Assessment Abstract South Africa has a competitive and viable food production sector which enables the country to be a consistent net exporter of agricultural products. Lately, the business and labour organisations have raised concerns that the government’s intention to implement the carbon tax policy will affect the food supply, subsequently exacerbating the unemployment and food insecurity in the country. Carbon tax is one of the policy tools to be implemented in order to reduce the growing greenhouse gas emissions thus helping the government meets its Paris Agreement commitments. South Africa’s National Treasury released a second draft of the carbon tax bill in 2017, which takes into account the concerns raised by different organisations. In this paper, we evaluate the potential impact of the carbon tax policy on agriculture, food and other sectors using a dynamic computable general equilibrium model. The results show that the carbon tax is an effective policy tool to mitigate emissions, as they decline by 33% relative to the baseline by 2035. This also leads to a welfare loss of R98.326 billion as the country transforms into a green economy. The carbon-intensive sectors like transport, steel and coal-generated electricity experiences significant output decline. However, the agriculture and food sectors show improvements in terms of jobs and production when the carbon tax is implemented. The positive effects on these two sectors are greatly reduced if tax exemptions provided to the agricultural sector are removed and the tax revenue is not recycled in the form of production subsidy to industries. CGE, Carbon tax, Agriculture 2 2019 74 10 16 Environmental and Resource Economics 891 910 C68 H23 Q18 http://link.springer.com/10.1007/s10640-019-00352-9 text/html Abstract Sifiso M. Ntombela Sifiso@igrodeals.co.za University of Pretoria Heinrich R. Bohlmann University of Pretoria Mmatlou W. Kalaba University of Pretoria
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article The Impact of Adaptation on the Stability of International Environmental Agreements Abstract We examine the stability of international environmental agreements that include clauses pertaining to both adaptation and mitigation measures. We assume that adaptation requires a prior irreversible investment and presents the characteristics of a private good by reducing a country’s vulnerability to the impact of pollution, while mitigation policies produce a public good by reducing the total amount of pollution. Using a stylized model, we show that adaptive measures can be used strategically and that their inclusion in environmental agreements enhances agreement stability and can even lead to full cooperation. We examine the robustness of agreements including both adaptation and mitigation measures against renegotiation. Finally, we evaluate how including adaptive measures for climate change in international environmental agreements affects welfare and overall pollution. Adaptation, Climate change, Mitigation, Strategy, Stability 2 2019 74 10 9 Environmental and Resource Economics 697 725 http://link.springer.com/10.1007/s10640-019-00341-y text/html Abstract Michèle Breton michele.breton@hec.ca HEC Montréal Lucia Sbragia Durham University Business School
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article Twenty Key Challenges in Environmental and Resource Economics Abstract Economic and ecological systems are closely interlinked at a global and a regional level, offering a broad variety of important research topics in environmental and resource economics. The successful identification of key challenges for current and future research supports development of novel theories, empirical applications, and appropriate policy designs. It allows establishing a future-oriented research agenda whose ultimate goal is an efficient, equitable, and sustainable use of natural resources. Based on a normative foundation, the paper aims to identify fundamental topics, current trends, and major research gaps to motivate further development of academic work in the field. Environmental and resource economics, Survey, Key research topics 4 2020 77 12 3 Environmental and Resource Economics 725 750 Q00 Q2 Q3 Q5 http://link.springer.com/10.1007/s10640-020-00516-y text/html Abstract Lucas Bretschger lbretschger@ethz.ch CER-ETH Centre of Economic Research at ETH Zurich Karen Pittel pittel@ifo.de ifo Institute and LMU Munich
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article A Physico-Economic Model of Low Earth Orbit Management Abstract We analyze the externality caused by the accumulation of space debris, focusing on the long-term equilibrium induced by a constant rate of satellite launches. We give conditions such that the long-term population of functioning satellites is an inverted-U shape function of the launch rate. We compare typical ways of managing the orbit. The maximum carrying capacity is the maximum population of satellites that the space sector can sustain in the long run. The physico-economic equilibrium occurs under open-access to the orbit. The optimal policy maximizes the present value profit of the space sector. Finally, we discuss the use of standard economic instruments (command-and-control, tax and market) to regulate space activity in order to achieve an optimal outcome. A numerical application based on a realistic calibration illustrates all results. Space economics, Orbital debris, Sustainability L1, L9, Q2 4 2020 77 12 2 Environmental and Resource Economics 695 723 http://link.springer.com/10.1007/s10640-020-00515-z text/html Abstract Sébastien Rouillon sebastien.rouillon@u-bordeaux.fr University of Bordeaux
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article Addressing Attribute Value Substitution in Discrete Choice Experiments to Avoid Unintended Consequences Abstract Choice experiments are a popular method of generating stated preference data for a variety of fields from marketing to health, transportation and environmental economics. They allow researchers to systematically vary choice attributes in a manner that can both increase estimation efficiency and allay endogeneity concerns. An increasing number of studies have included elicited subjective beliefs in their stated preference models. We discuss why this strategy may be warranted in some cases, specifically when the researcher suspects subjects will engage in attribute value substitution or scenario adjustment. While there are multiple ways one could integrate subjective beliefs, in all cases a proper understanding of the econometric ramifications of their inclusion is necessary. We show that excluding subjective beliefs yields biased parameter estimates yet policy-relevant welfare measures, whereas including subjective beliefs yields unbiased parameter estimates but can generate less policy-relevant welfare estimates. We demonstrate how policy-relevant welfare measures should be calculated from models that include subjective beliefs and illustrate our theory with an application to payment for ecosystem services to farmers. Subjective beliefs, Discrete choice, Attribute value substitution, Scenario adjustment 4 2020 77 12 6 Environmental and Resource Economics 813 838 http://link.springer.com/10.1007/s10640-020-00519-9 text/html Abstract Gregory Howard howardgr@ecu.edu East Carolina University Brian E. Roe roe.30@osu.edu Ohio State University Matthew G. Interis m.interis@msstate.edu Mississippi State University Jay Martin martin.1130@osu.edu Ohio State University
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article Climate Change Legislations and Environmental Degradation Abstract This study investigates how the enactment of regulations and laws dealing with climate change influences CO2 emissions. Using a sample of 83 countries and covering the period from 2003 to 2014, our dynamic panel analysis yields two major results. First, the enactment of new climate change regulations (i.e., amendments, decrees, orders) associated with a strong rule of law significantly diminishes CO2 emissions. This result validates the hypothesis of Gunningham (J Environ Law 23:169–201, 2011. https://doi.org/10.1093/jel/eqr006 ), which argues that the efficiency of environmental legislation must be supported by regulatory institutions that can efficiently enforce the law. Second, the enactment of new climate change laws seems to not impact emissions levels independently of institutional quality. It may be possible that private agents anticipate the entry into force of the new law(s) and must consequently adapt to the requirements of such laws, leading to a nonsignificant impact on CO2 emissions. Legislation, Climate change, CO2 emissions, Institutional quality, Rule of law 4 2020 77 12 7 Environmental and Resource Economics 839 868 O13 P48 K32 http://link.springer.com/10.1007/s10640-020-00520-2 text/html Abstract Nicolae Stef nicolae.stef@bsb-education.com CEREN EA 7477, Burgundy School of Business, Université Bourgogne Franche-Comté, Department of Accounting, Finance & Law Sami Ben Jabeur sbenjabeur@gmail.com ESDES Business School of UCLyon
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article Endogenizing the Cap in a Cap-and-Trade System: Assessing the Agreement on EU ETS Phase 4 Abstract In early 2018, a reform of the world’s largest functioning greenhouse gas emissions cap-and-trade system, the EU Emissions Trading System (ETS), was formally approved. The reform changed the main principles of the system by endogenizing the emissions cap. We show that the emissions cap is now affected by the allowance demand and is therefore no longer set directly by EU policymakers. As a consequence, national policies that reduce allowance demand can now reduce long-run cumulative emissions, which is not possible in a standard cap-and-trade system. Using a newly developed dynamic model of the EU ETS, we show that policies that reduce allowance demand can have substantial effects on cumulative emissions after the reform. Model simulations also suggest that the reform reduces long-run cumulative emissions and, to a lesser extent, reduces emissions in the short run. Even so, the reform has a small short-run impact on the currently large allowance surplus. Cap-and-trade, EU ETS, Market Stability Reserve, Overlapping policies Q48, Q54, Q58 4 2020 77 12 5 Environmental and Resource Economics 781 811 http://link.springer.com/10.1007/s10640-020-00518-w text/html Abstract Ulrik Beck Danish Research institute for Economic Analysis and Modelling Peter K. Kruse-Andersen peter.k.kruse-andersen@econ.ku.dk University of Copenhagen
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article When Power Plants Leave Town: Environmental Quality and the Housing Market in China Abstract Air pollution is a major environmental issue in China. This paper exploits the relocation of two major power plants in a large Chinese city as a quasi-natural experiment to examine the effect of changes in the quality of the environment on the housing market. We use an extensive transaction dataset of new apartment units in the affected and neighboring areas. We find that the plants’ closure is associated with a 12–14% increase in prices and 13–31% rise in the volume of transactions in neighborhoods within five kilometers of the plants. We further observe a higher change in prices among more expensive houses. The estimated monthly aggregate effect of the closures on the local housing market is over 50 million US dollars during the first 2 years after the relocations. Power plants, Environmental quality, Housing market, China 4 2020 77 12 4 Environmental and Resource Economics 751 780 Q53 Q51 R30 http://link.springer.com/10.1007/s10640-020-00517-x text/html Abstract Guoying Deng dengguoying@scu.edu.cn Sichuan University Manuel A. Hernandez m.a.hernandez@cgiar.org IFPRI Shu Xu xushu@swufe.edu.cn Southwestern University of Finance and Economics
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article Implications of Entry Restrictions to Address Externalities in Aquaculture: The Case of Salmon Aquaculture Abstract This paper investigates production license management when regulation constrains the number of production licenses to address production externalities. This is increasingly relevant for aquaculture production where disease issues threaten future seafood supply. The regulatory problem is analyzed in the context of Norwegian salmon aquaculture where a stop in issuance of new production licenses has been implemented to address social costs of parasitic sea lice. Our theoretical model shows that restricting number of licenses raises prices and shifts production efforts excessively towards greater stocking of fish per license. Hence, the policy cannot achieve a first-best welfare-maximizing allocation. Furthermore, restricting entry by limiting number of licenses can create regulatory rents, which effectively subsides rather than tax the source of the externality. Regulations, Food production, Externalities 4 2020 77 12 1 Environmental and Resource Economics 673 694 Q11 Q22 http://link.springer.com/10.1007/s10640-020-00514-0 text/html Abstract Atle Oglend atle.oglend@uis.no University of Stavanger Vesa-Heikki Soini University of Stavanger Hanken School of Economics, Helsinki Graduate School of Economics
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article Correction to: Commodity Consistent Meta-Analysis of Wetland Values: An Illustration for Coastal Marsh Habitat In the original article, the code used to estimate the meta-regression models (of WTP for coastal marsh habitat changes) erroneously included the natural log of nominal rather than real income as an independent variable. 4 2020 77 12 8 Environmental and Resource Economics 869 878 http://link.springer.com/10.1007/s10640-020-00523-z text/html Abstract Hermine Vedogbeton hvedogbeton@clarku.edu Clark University Robert J. Johnston rjohnston@clarku.edu Clark University Clark University
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article Inferring Economic Impacts from a Program’s Physical Outcomes: An Application to Forest Protection in Thailand Abstract Economists typically estimate the average treatment effect on the treated (ATT) when evaluating government programs. The economic interpretation of the ATT can be ambiguous when program outcomes are measured in purely physical terms, as they often are in evaluations of environmental programs (e.g., avoided deforestation). This paper presents an approach for inferring economic impacts from physical outcomes when the ATT is estimated using propensity-score matching. For the case of forest protection, we show that a protection program’s ex post economic impact, as perceived by the government agency responsible for protection decisions, can be proxied by a weighted ATT, with the weights derived from the propensity of being treated (i.e., protected). We apply this new metric to mangrove protection in Thailand during 1987–2000. We find that the government’s protection program avoided the loss of 12.8% of the economic value associated with the protected mangrove area. This estimate is about a quarter smaller than the conventional ATT for avoided deforestation, 17.3 percentage points. The difference between the two measures indicates that the program tended to be less effective at reducing deforestation in locations where the government perceived the net benefits of protection as being greater, which is the opposite of the relationship that would characterize a maximally effective program. Forest, Impact evaluation, Mangrove, Propensity score matching, Protected area, Random utility model, Roy model, Thailand, Treatment effect 3 2023 84 3 9 Environmental and Resource Economics 845 876 http://link.springer.com/10.1007/s10640-021-00644-z text/html Abstract Wumeng He Wuhan University Orapan Nabangchang Sukhothai Thammathirat Open University Krista Erdman South Dakota Department of Agriculture Alex C. A. Vanko Wildlands Network Prapti Poudel College of Natural Resources, North Carolina State University Chandra Giri U.S. Environmental Protection Agency Jeffrey R. Vincent jeff.vincent@duke.edu Duke University
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article Assessing Multiple Inequalities and Air Pollution Abatement Policies Abstract Addressing inequality is recognized a worldwide development objective. The literature has primarily focused on examining economic or social inequality, but rarely on environmental inequality. Centering the discussion on economic or social factors does not provide a holistic view of inequality because it is multidimensional and several facets may overlap imposing a disproportionate burden on vulnerable communities. This study investigates the magnitude of air quality inequality in conjunction with economic and social inequalities in Bogotá (Colombia). It explores where inequalities overlap and assesses alleviation measures by tackling air pollution. We develop a composite index to estimate performance in socioeconomic and air quality characteristics across the city and evaluate inequality with a variety of measures. Using an atmospheric chemical transport model, we simulate the impact of three air pollution abatement policies: paving roads, industry fuel substitution, and diesel-vehicle renewal on fine particle concentrations, and compute their effect on inequality. Results show that allocation of air quality across Bogotá is highly unequal, exceeding economic or social inequality. Evidence also indicates that economic, social and air quality disparities intersect, displaying the southwest as the most vulnerable zone. Paving roads is found to be the most progressive and cost-effective policy, reducing overall inequality between 11 and 46 percent with net benefits exceeding US$1.4 billion. Inequality measures, Air pollution, Atmospheric chemical transport model, Human health, Cost–benefit analysis, Composite index 3 2023 84 3 4 Environmental and Resource Economics 695 727 D63 Q51 Q52 Q56 http://link.springer.com/10.1007/s10640-022-00745-3 text/html Abstract Jorge A. Bonilla jobonill@uniandes.edu.co Universidad de los Andes Claudia Aravena c.aravena@hw.ac.uk Heriot-Watt University Ricardo Morales-Betancourt r.moralesb@uniandes.edu.co Universidad de Los Andes
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article Fish Protein Transition in a Coastal Developing Country Abstract In low-income food-deficit coastal countries, fish forms a critical source of animal protein. Yet, capture fisheries, which provide fish protein to the local populations, are typically overcapitalized and exhibit classical signs of biological overfishing, threatening the livelihoods of communities. With the high and increasing fishing pressure, the rate of stock depletion may continue to intensify, thereby tilting households’ preferences towards consumption of other types of animal protein depending on whether (or not) they have strong preferences for those types of protein. This, however, may have implications for the environment as the different types of protein have different environmental footprints. By employing a variant of the Suits Index (1977) and an Almost Ideal Demand Systems (AIDS) model, we found strong evidence that wealthier households in Ghana spend a lesser proportion of their protein budget on fish than their poorer counterparts. In addition, the other types of animal protein, except chicken, serves as substitutes for fish. Animal protein, Fish, Nutrition transition, Ghana 3 2023 84 3 8 Environmental and Resource Economics 825 843 http://link.springer.com/10.1007/s10640-022-00669-y text/html Abstract Wisdom Akpalu Wakpalu@gimpa.edu.gh Ghana Institute of Management and Public Administration (GIMPA) Michael Adu Okyere papaokyere70@gmail.com Xiamen University
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article Population, Ecological Footprint and the Sustainable Development Goals Abstract The Anthropocene can be read as being the era when the demand humanity makes on the biosphere’s goods and services—humanity’s ‘ecological footprint’—vastly exceeds its ability to supply it on a sustainable basis. Because the ‘ecological’ gap is met by a diminution of the biosphere, the inequality is increasing. We deploy estimates of the ecological gap, global GDP and its growth rates in recent years, and the rate at which natural capital has declined, to study three questions: (1) at what rate must efficiency at which Nature’s services are converted into GDP rise if the UN’s Sustainable Development Goals for year 2030 are to be sustainable; (2) what would a sustainable figure for world population be if global living standard is to be maintained at an acceptably high level? (3) What living standard could we aspire to if world population was to attain the UN’s near lower-end projection for 2100 of 9 billion? While we take a global perspective, the reasoning we deploy may also be applied on a smaller scale. The base year we adopt for our computations is the pre-pandemic 2019. Biosphere, Ecological footprint, Sustainable development goals, Impact inequality, Natural regeneration rate, Population 3 2023 84 3 2 Environmental and Resource Economics 659 675 http://link.springer.com/10.1007/s10640-021-00595-5 text/html Abstract Partha Dasgupta pd10000@cam.ac.uk University of Cambridge Aisha Dasgupta Foreign, Commonwealth, and Development Office Scott Barrett Columbia University
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article Local Effects of Payments for Ecosystem Services on Rural Poverty Abstract This paper estimates the local effects of a Payment for Ecosystem Services (PES) program on income-based poverty rates in rural areas of Costa Rica between 2007–2009. Using household surveys and spatial geographic data, we are able to control for socioeconomic and geographic characteristics at the individual and census-tract level. Our results suggest that while payments did not affect poverty rates at the national level, poverty did increase in places where PES had the greatest effect on deforestation. This effect is stronger for uneducated males, who tend to work in agricultural activities. The trade-off between ecosystem services provision and poverty is not ubiquitous and, when present, could be addressed by targeting those groups that are most affected. Payments for ecosystem services, Poverty, Environment and development, Forest conservation 3 2023 84 3 6 Environmental and Resource Economics 753 774 I32 I38 O13 O15 Q23 Q28 Q56 http://link.springer.com/10.1007/s10640-022-00733-7 text/html Abstract Laura Villalobos Salisbury University Juan Robalino juan.robalino@ucr.ac.cr University of Costa Rica Catalina Sandoval Costa Rican Central Bank Francisco Alpízar Wageningen University
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article Low-Cost Strategies to Improve Municipal Solid Waste Management in Developing Countries: Experimental Evidence from Nepal Abstract Many cities in developing countries lack adequate drainage and waste management infrastructure. Consequently, city residents face economic and health impacts from flooding and waterlogging, which are aggravated by solid waste infiltrating and blocking drains. City governments have recourse to two strategies to address these problems: a) ‘hard’ infrastructure-related interventions through investment in the expansion of drainage and waste transportation networks; and/or, b) ‘soft’, low-cost behavioural interventions that encourage city residents to change waste disposal practices. This research examines whether behavioural interventions, such as information and awareness raising alongside provision of inexpensive street waste bins, can improve waste management in the city. We undertook a cluster randomized controlled trial study in Bharatpur, Nepal, where one group of households was treated with a soft, low-cost intervention (information and street waste bins) while the control group of households did not receive the intervention. We econometrically compared baseline indicators – perceived neighbourhood cleanliness, household waste disposal methods, and at-source waste segregation – from a pre-intervention survey with data from two rounds of post-intervention surveys. Results from analysing household panel data indicate that the intervention increased neighbourhood cleanliness and motivated the treated households to dispose their waste properly through waste collectors. The intervention, however, did not increase household waste segregation at source, which is possibly because of municipal waste collectors mixing segregated and non-segregated waste during collection. At-source segregation, a pre-requisite for efficiently managing municipal solid waste, may improve if municipalities arrange to collect and manage degradable and non-degradable waste separately. At-source segregation, Low-cost intervention, Municipal solid waste, RCT, Low-cost waste bins, Nepal 3 2023 84 3 5 Environmental and Resource Economics 729 752 http://link.springer.com/10.1007/s10640-021-00640-3 text/html Abstract Mani Nepal Mani.Nepal@icimod.org mani.nepal@bus.illinois.edu South Asian Network for Development and Environmental Economics (SANDEE), International Center for Integrated Mountain Development (ICIMOD) Apsara Karki Nepal apsunkarki@gmail.com International Center for Integrated Mountain Development (ICIMOD) Madan S. Khadayat madankdyt@yahoo.com Freelance Researcher Rajesh K. Rai rjerung@gmail.com Tribhuvan University Priya Shyamsundar priya.shyamsundar@tnc.org The Nature Conservancy E. Somanathan som@isid.ac.in Indian Statistical Institute
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article Spreading Environmental Economics Worldwide 3 2023 84 3 1 Environmental and Resource Economics 649 657 http://link.springer.com/10.1007/s10640-023-00757-7 text/html Abstract Thomas Sterner thomas.sterner@economics.gu.se University of Gothenburg Edward B. Barbier University of Gothenburg Colorado State University Anne-Sophie Crépin The Royal Swedish Academy of Sciences Stockholm University
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article Sanctioned Quotas Versus Information Provisioning for Community Wildlife Conservation in Zimbabwe: A Framed Field Experiment Approach Abstract We investigate the behavioural responses of natural common-pool resource users to three policy interventions—sanctioned quotas, information provisioning, and a combination of both. We focus on situations in which users find utility in multiple resources (pastures and wild animal stocks) that all stem from the same ecosystem with complex dynamics, and management could trigger a regime shift, drastically altering resource regrowth. We performed a framed field experiment with 384 villagers from communities managing common-pool wildlife in Zimbabwe. We find that user groups are likely to manage these natural resources more efficiently when facing a policy intervention (either a sanctioned quota, receiving information about a drastic drop in the stocks’ regrowth below a threshold, or a combination of both), compared to groups facing no intervention. A sanctioned quota is likely to perform better than providing information about the existence of a threshold. However, having information about the threshold also leads to higher efficiency and fewer depletion cases, compared to a situation without any intervention. The main contribution of this study is to provide insights that can inform policymakers and development practitioners about the performance of concrete and feasible policy interventions for community wildlife conservation in Southern Africa. Common-pool resources, Behavioural experiments, Regime shifts, Information, Sanctioned quota, Thresholds, Southern Africa, Elephants 3 2023 84 3 7 Environmental and Resource Economics 775 823 C93 D01 D02 Q57 Q58 http://link.springer.com/10.1007/s10640-023-00759-5 text/html Abstract Herbert Ntuli herbert.ntuli@up.ac.za University of Pretoria University of Cape Town Anne-Sophie Crépin annesophie.crepin@beijer.kva.se The Royal Swedish Academy of Sciences Stockholm University Caroline Schill caroline.schill@beijer.kva.se The Royal Swedish Academy of Sciences Stockholm University Edwin Muchapondwa edwin.muchapondwa@uct.ac.za University of Cape Town Luleå University of Technology
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article Valuing the Environment as Input, Ecosystem Services and Developing Countries Abstract In outlining how “valuing the environment as input” could be applied to a number of contexts in low and middle-income countries, Karl-Göran Mäler laid the foundation for many additional applications of the production function approach as reported (Mäler in Valuing environmental benefits in developing countries. Special Report 29, Michigan State University, pp 11–32. 1991). The following review traces how his contribution has helped spawn a large literature on valuing ecosystem services as applied in low and middle-income countries. We examine a number of case studies illustrating such approaches. We also note growing interest in two important applications in low and middle-income countries: the hydrological function of forested watersheds and the storm protection provided by estuarine and coastal ecosystems. Using the example of storm protection by mangroves, we further explore the role of spatial characteristics in influencing the value attributed to this benefit. Developing countries, Ecosystem services, Mangroves, Production function method, Valuation 3 2023 84 3 3 Environmental and Resource Economics 677 694 Q51 Q54 Q57 http://link.springer.com/10.1007/s10640-021-00570-0 text/html Abstract Edward B. Barbier Edward.barbier@colostate.edu Colorado State University Angela Cindy Emefa Mensah Colorado State University Michelan Wilson Colorado State University
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article Prices Versus Quantities Versus Hybrids in the Presence of Co-pollutants Abstract We investigate the optimal regulation of a pollutant given its abatement interaction with another pollutant under asymmetric information about firms’ abatement costs. We take a policy-relevant, second-best approach by assuming that the co-pollutant is regulated exogenously, but perhaps not efficiently. Our focus is on optimal policy choice in this setting, and we derive rules for determining whether a pollutant should be regulated with an emissions tax, an emissions market, or a market with price controls, given the regulation of its co-pollutant. We find that the policy choice for a pollutant is unaffected by its interaction with a co-pollutant that is controlled with a fixed number of tradable permits, because changes in emissions of the primary pollutant do not affect aggregate emissions of the co-pollutant. However, when a co-pollutant is controlled with a tax, the policy choice for the primary pollutant must account for its effect on expected co-pollutant damage through changes in the variance of co-pollutant emissions. Consequently, standard conclusions about the environmental policy choice problem must be modified in this case. Our results have important implications for designing policies for greenhouse gases under uncertainty. Emissions trading, Emissions taxes, Cap-and-trade, Uncertainty, Price controls, Hybrid policies, Prices versus quantities 2 2019 73 6 1 Environmental and Resource Economics 353 384 L51 Q58 http://link.springer.com/10.1007/s10640-018-0266-4 text/html Abstract John K. Stranlund stranlund@resecon.umass.edu University of Massachusetts-Amherst Insung Son isson@keei.re.kr Korea Energy Economics Institute
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article Heat in the Heartland: Crop Yield and Coverage Response to Climate Change Along the Mississippi River Abstract Farmers may adapt to climate change by substituting away from the crops most severely affected. In this paper we estimate the substitution caused by a moderate change in climate in the US Midwest. We pair a 10-year panel of satellite-based crop coverage with spatially explicit soil data and a fine-scale weather data set. Combining a proportion type model with local regressions, we simultaneously address the econometric issues of proportion dependent variables and spatial correlation of unobserved factors. We find the change in expected crop coverage and then we link those changes to the expected changes from an estimated climate dependent yield equation. Ceteris paribus, we find that climate induced changes in yield are offset by land coverage changes for rice and cotton but they are strongly amplified for corn and soy. Adaptation, Climate change, Crop choice, Yield, Production 2 2019 73 6 5 Environmental and Resource Economics 485 513 Q15 Q54 http://link.springer.com/10.1007/s10640-018-0271-7 text/html Abstract Lunyu Xie lunyuxie@ruc.edu.cn Department of Energy Economics, School of Economics, Renmin University of China Sarah M. Lewis sarah@envisiongeo.com Envision Geo LLC Maximilian Auffhammer auffhammer@berkeley.edu University of California Peter Berck pberck@berkeley.edu University of California
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article Funding Global Environmental Public Goods Through Multilateral Financial Mechanisms Abstract Multilateral financial mechanisms (MFMs) are becoming increasingly prevalent as a means for addressing global public good problems. MFMs raise funds from member countries through “burden sharing” arrangements, and these funds are disbursed as grants to finance environmental projects around the world. These projects are impure public goods, as they help achieve global (public) objectives like climate change mitigation, and they also generate local (private) benefits for recipient countries. This paper constructs a model of MFMs and explores how impure public goods influence burden sharing arrangements. I design an optimal burden sharing mechanism and show how resultant environmental quality and welfare are affected by the choice of grant allocations. Counterintuitively, grant reallocations can be redistributive, Pareto improving, or immiserating, and these results are shaped by the initial distribution of grants and by substitute and complement relationships between private and public consumption. Burden sharing, Environmental agreements, Impure public goods, Joint production, Public goods 2 2019 73 6 6 Environmental and Resource Economics 515 531 D71 F53 H87 Q50 http://link.springer.com/10.1007/s10640-018-0272-6 text/html Abstract Nathan W. Chan nchan@umass.edu University of Massachusetts Amherst
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article Stated Preferences for Conservation Policies Under Uncertainty: Insights on the Effect of Individuals’ Risk Attitudes in the Environmental Domain Abstract The outcome of a conservation policy is often subject to uncertainty. In stated preference valuation, it is increasingly recognised that uncertainty affects preferences for the outcomes of environmental policies. However, there is also agreement that the effect of uncertainty and people’s attitudes towards risk need to be better understood. To shed more light on the impact of risk, we designed a discrete choice experiment to compare preferences for environmental outcomes under climate change across two split samples. Each sample was confronted with a scenario where results were presented as certain or uncertain, but were otherwise associated with the same expected values. We found significant differences between the certain and the uncertain treatment, with uncertain outcomes being associated with more extreme utility levels and willingness to pay, in absolute terms. This finding was confirmed irrespective of whether gains or losses were considered and despite sensitivity to uncertainty—specific to the socio-demographic profile. Our results suggest that individuals are not risk neutral in the presence of uncertainty around environmental outcomes. These findings are crucial to better understand stated preferences for conservation policies in risky contexts. Our results reinforce the idea that uncertainty should be explicitly incorporated in the design of stated preference studies to better inform policy. Stated preference valuation, Uncertainty, Risk attitude, Climate change, Conservation D6, D81, Q20, Q51, Q54 2 2019 73 6 10 Environmental and Resource Economics 627 659 http://link.springer.com/10.1007/s10640-018-0276-2 text/html Abstract Michela Faccioli m.faccioli@exeter.ac.uk The James Hutton Institute University of Exeter Laure Kuhfuss The James Hutton Institute University of St Andrews Mikołaj Czajkowski University of Warsaw
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article Trading Off Tourism for Fisheries Abstract This paper presents a deterministic bioeconomic model in which the creation of a marine protected area (MPA) is not only a fisheries management tool but also introduced in order to provide tourism amenity benefits. The theoretical model is illustrated with analysis of the Nha Trang Bay (NTB) MPA in Khanh Hoa province in Vietnam, where the anchovy purse seine fishery is considered. An amenity value function of the NTB MPA is estimated from a discrete choice experiment among national tourists. A weighting parameter is added to the bioeconomic model to allow the establishment of a tradeoff between management preferences regarding the two sectors affected by the MPA, fisheries and tourism. Both the theoretical models and the empirical application show how the added amenity values affect optimal fishing practices as well as the identification of the optimal MPA size. Our applied analysis shows that contrary to the argument in most MPA studies with multiple stakeholders, the current management practice in Khanh Hoa prioritizes the fisheries sector heavily compared to tourism, despite high economic cost. Bioeconomic model, Management, Marine protected area, Fishery, Tourism 2 2019 73 6 13 Environmental and Resource Economics 697 716 http://link.springer.com/10.1007/s10640-018-0281-5 text/html Abstract Bui Bich Xuan xuanbb@ntu.edu.vn Nha Trang University Claire W. Armstrong UiT The Arctic University of Norway
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article Demand-Pull Instruments and the Development of Wind Power in Europe: A Counterfactual Analysis Abstract Renewable energy technologies are called to play a crucial role in the reduction of greenhouse gas emissions. Since most of these technologies did not yet reach grid parity, public policies have been implemented in order to foster their deployment. The approach that has been privileged in Europe is the demand-pull approach that aims at creating a demand for these new technologies and at stimulating their diffusion. This paper examines the effect of demand-pull policies on the diffusion of onshore wind power technology in six European countries: Denmark, France, Germany, Italy, Portugal and Spain. In a first step, a micro-founded model of diffusion is calibrated in order to replicate the observed diffusion of wind power in these six countries. In a second step, a counterfactual analysis is conducted by investigating several scenarios. By taking into account the complex self-sustained dynamics of diffusion and the learning spillovers that operate in the wind power sector, we can derive several insights about demand-pull policies. First, the impact of a demand-pull policy on the diffusion of wind power is determined by the stage at which it comes to support it. The effect seems to be stronger at the beginning of the diffusion. Second, international spillovers do operate in the wind power sector. These international spillovers however are not strong enough to foster the diffusion of wind power in a country having no demand-pull support. We can derive from these two statements that a strategy consisting in not implementing any demand-pull policy, with the expectation that international spillovers will reduce the cost of wind power and foster the diffusion of the technology that then shall become competitive, is not a good option for a country targeting a high share of wind power in its energy mix. Renewable energy, Diffusion, Wind power, Demand-pull, Counterfactual analysis 2 2019 73 6 2 Environmental and Resource Economics 385 429 http://link.springer.com/10.1007/s10640-018-0267-3 text/html Abstract Marc Baudry marc.baudry@parisnanterre.fr Univ Paris Nanterre Climate Economics Chair Clément Bonnet clement.bonnet@ifp.fr Univ Paris Nanterre Climate Economics Chair IFP Energie Nouvelle
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article Optimal Transition from Coal to Gas and Renewable Power Under Capacity Constraints and Adjustment Costs Abstract Given a cap on carbon emissions, what is the optimal transition from coal to gas and renewable energy? To answer this question, we model the dependence of the energy sector on both (1) polluting exhaustible resources and (2) long-lived capital such as power plants. To minimise adjustment costs, optimal investments in expensive renewable energy start before phasing out fossil-fuel consumption, and may even start before investing in gas-fired plants. Investment in gas-fired plants can reduce the need for expensive renewable investment in the short term, but they eventually need to be decommissioned to make room to carbon-free power in the long term. Simulations of the European Commission’s Energy Roadmap illustrate and quantify these results. Climate change mitigation, Low-carbon investment, Renewables, Fossil fuels, Resource extraction, Early-scrapping 2 2019 73 6 8 Environmental and Resource Economics 557 590 Q54 Q58 http://link.springer.com/10.1007/s10640-018-0274-4 text/html Abstract Renaud Coulomb University of Melbourne Oskar Lecuyer lecuyero@afd.fr Agence Française de Développement Adrien Vogt-Schilb Inter-American Development Bank
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article Conservation Incentives from an Ecosystem Service: How Much Farmland Might Be Devoted to Native Pollinators? Abstract Some conservation advocates hope the ecosystem services that areas of natural habitat provide will generate sufficient incentives to offset the opportunity costs of habitat preservation. In this paper I consider a service that has received considerable attention: pollination. While many crops are pollinated by rented honeybees, wild organisms might also pollinate crops if habitats were maintained to sustain them. I develop conditions under which a farmer might choose to maintain such habitats rather than to pay to rent bees. For pollination, as with many other ecosystem services, there may be a “paradox of efficiency”. If areas of habitat provide services efficiently, they might prove to be quite valuable. Under the same circumstances, however, appeals to ecosystem services values might motivate only modest conservation. I illustrate these ideas using the example of California almond farming. Even if almond farmers could profitably rely on wild pollinators, they might devote only a small fraction of their holdings to habitat for such pollinators. It may be important in light of these findings to ask what the objectives of conservation really are, and whether they can be best achieved by instrumental arguments as opposed to appeals to the less tangible benefits of conservation. Pollination, Paradox of efficiency, Diminishing returns, Ecosystem services, Habitat 2 2019 73 6 11 Environmental and Resource Economics 661 678 Q15 Q57 http://link.springer.com/10.1007/s10640-018-0277-1 text/html Abstract R. David Simpson rdsimpson3@live.com RDS Analytics, LLC
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article Nutrient Trading Between Wastewater Treatment Plants in the Baltic Sea Region Abstract We analyze nutrient trading between wastewater treatment plants as a tool for reducing nitrogen and phosphorus loads in the Baltic Sea. We build a numerical model and demonstrate that the goals of the Baltic Sea Action Plan can be achieved to a fairly large extent by nutrient trading between wastewater treatment plants. It is also a relatively inexpensive way to reduce nutrient loads. Furthermore, a nutrient trading scheme with properly designed initial allocations enables an evening out of the cost burden between wastewater treatment plants. We study alternative types of nutrient trading schemes and show that when trading is based on nitrogen equivalents, phosphorus abatement reaches its capacity limits. Moreover, we illustrate that transaction costs clearly increase the level of nitrogen abatement costs but only slightly the level of phosphorus abatement costs. Nevertheless, even though transaction costs reduce benefits from trading relative to command-and-control, huge cost differences between the installations create space for trading. Baltic Sea, Cost-effectiveness, Environmental policy, Eutrophication control, Nitrogen, Nutrient abatement cost, Nutrient reduction, Nutrient trading, Phosphorus, Wastewater treatment 2 2019 73 6 7 Environmental and Resource Economics 533 556 http://link.springer.com/10.1007/s10640-018-0273-5 text/html Abstract Sami Hautakangas sami.hautakangas@helsinki.fi University of Helsinki Markku Ollikainen markku.ollikainen@helsinki.fi University of Helsinki
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article Opportunity Cost of Environmental Conservation in the Presence of Externalities: Application to the Farmed and Wild Salmon Trade-Off in Norway Abstract Estimation of the opportunity cost is necessary for the economic assessment of environmental conservation policies. This paper considers the case where an environmental good is negatively affected in the process of the production of marketable goods. In the presence of externalities, conservation implies the undertaking of abatement measures by polluters. A relevant measure of opportunity cost in these settings is the abatement cost required to preserve or restore a unit of the environmental good in question. Current economic literature lacks an established methodology for deriving such measures, as it commonly focuses on pricing pollutants rather than the natural stocks affected by them. This paper uses a non-optimal valuation approach suggested by Fenichel and Abbott (JAERE 1(1/2):1–27, 2014) as a point of departure and develops a framework for deriving the opportunity cost of conservation as the cost of externality abatement per unit of environmental good. An empirical illustration is provided for the case of the farmed and wild salmon trade-off in Norway in light of the current pollution control regulations. Cost–benefit analysis, Damage function, Ecosystem services, Optimality, Policy efficiency, Production frontier, Production function, Shadow price, Valuation 2 2019 73 6 12 Environmental and Resource Economics 679 696 http://link.springer.com/10.1007/s10640-018-0278-0 text/html Abstract Ekaterina Nikitina Ekaterina.nikitina@uit.no UiT The Arctic University of Norway
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article Correction to: Trading Off Tourism for Fisheries During the correction stage, the author requested that “302 be in line with NPV* and NPV*f” in Table 4. 2 2019 73 6 14 Environmental and Resource Economics 717 717 http://link.springer.com/10.1007/s10640-018-0285-1 text/html Abstract Bui Bich Xuan xuanbb@ntu.edu.vn Nha Trang University Claire W. Armstrong UiT The Arctic University of Norway
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article Double Free-Riding in Innovation and Abatement: A Rules Treaty Solution Abstract In addressing climate change, both abatement itself and the innovation of superior abatement technologies are exposed to free-riding. To examine this double free-riding problem, we develop a multi-country model with an international market for emission permits and licenses for abatement technologies. We show that the two problems are mutually reinforcing. To address the double free-riding problem we propose a rules treaty for innovation and abatement that consists of two rules, an allocation rule and a refunding rule. The allocation rule determines the share of issued emission permits that each country can directly allocate to its domestic firms, while the remainder is handed over to an international agency. The refunding rule determines how the agency’s revenues from selling these permits to firms are redistributed. A fraction is given to those countries that successfully develop superior abatement technologies provided they license the technology free of charge to all countries. The remaining revenues are redistributed to all countries. These rules can approximate globally optimal abatement and innovation levels. Rules treaty, Climate change, Global refunding scheme, International permit markets, Technological innovation, Patent, Licensing 2 2019 73 6 4 Environmental and Resource Economics 449 483 H23 H41 O32 O34 Q54 http://link.springer.com/10.1007/s10640-018-0270-8 text/html Abstract Hans Gersbach hgersbach@ethz.ch CER-ETH - Center of Economic Research at ETH Zurich and CEPR Quirin Oberpriller oberpriller@mip.mtec.ethz.ch CER-ETH - Center of Economic Research at ETH Zurich Martin Scheffel scheffel@wiso.uni-koeln.de CMR - Center for Macroeconomic Research at University of Cologne, Albertus-Magnus-Platz
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article Pay for the Option to Pay? The Impact of Improved Scientific Information on Payments for Ecosystem Services Abstract The scientific information needed to precisely link land use changes to changes in ecosystem service provision is often unavailable, particularly for hydrological ecosystem services. Potential buyers of ecosystem services must weigh the risk of paying to induce conservation that fails to deliver valuable ecosystem services against the risk that land is developed before its value is known. This paper uses a two period model to assess when expected future improvements in scientific information should substantially impact payments for conservation today. Optimal current payments increase, often substantially, as the quality of expected future information increases, but the gain from increasing payments to account for the expected degree of improved information is small in many cases. Larger values occur when the buyer believes that the land whose private development value is the highest also provides the highest ecosystem service value, when the buyer faces relatively more uncertainty about ecosystem service provision than about the cost of inducing conservation, and when the buyer believes land is highly likely to be developed absent incentive payments. Ecosystem services, Uncertainty, Option value, Numerical simulation 2 2019 73 6 9 Environmental and Resource Economics 591 625 http://link.springer.com/10.1007/s10640-018-0275-3 text/html Abstract Susan Stratton Sayre ssayre@smith.edu Smith College
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article Fiscal Pressure, Tax Competition and Environmental Pollution Abstract As one of the strategies local governments adopt in response to fiscal stress, tax competition influences the social optimum level of public goods such as environment. This paper aims to investigate the mechanism of regional tax competitions from the perspective of financial stress. Recently, the effect of tax competition on environmental pollution rises gradually. Existing empirical researches mostly apply a fiscal decentralization-based perspective and ignore the spatial correlation between pollution and tax competition. Under the perspective of financial stress, this paper measures the impact of inter-regional enterprise income tax competition and value-added tax competition on environmental pollution of 30 provinces, using empirical analysis, and then estimates the direct effect, indirect effect and total effect based on it from year 2004–2014. It’s been found that inter-regional tax competition not only brings negative influence to local environment, but also makes the environmental quality become worse in spatial correlation regions. These findings are of enlightening politic revelations to further standardize enterprise tax competition among local governments, and to promote the sustainable development both in economy and environment. Fiscal pressure, Tax competition, Environmental pollution, Spatial econometrics 2 2019 73 6 3 Environmental and Resource Economics 431 447 http://link.springer.com/10.1007/s10640-018-0269-1 text/html Abstract Junhong Bai bjh@njnu.edu.cn Nanjing Normal University Jiayu Lu lujiayu99@sina.com Nanjing Normal University Sijia Li 289623113@qq.com Nanjing Normal University
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article Environmental Inequality and Economic Valuation Abstract I study how the economic value of a heterogeneously distributed environmental public good depends on how the endowment with this good and income are distributed. I find that the effect of environmental inequality on the societal willingness to pay (WTP) for the environmental good is determined both by its substitutability and by the correlation of its provision with income. Specifically, environmental inequality decreases societal WTP for substitutes, but this effect is reversed if the environmental good is a complement or distributed strongly in favour of richer households. Moreover, I show that richer households living in places where environmental good endowment is high increases (decreases) societal WTP if and only if the environmental good is a substitute for (complement to) consumption goods. I propose novel adjustment factors for structural benefit transfer to control for differences in the spatial distribution of environmental goods. Using forest preservation in Poland as an empirical example, I find that societal WTP is up to 4% higher for equal access to forests and up to 8% higher for an equal distribution of both income and access to forests. Inequality, WTP, Heterogeneously distributed public good, Spatial distribution, Benefit transfer, Forest ecosystem services Environmental and Resource Economics 1 36 D63 Q51 http://link.springer.com/10.1007/s10640-020-00423-2 text/html Abstract Jasper N. Meya jasper.meya@idiv.de Leipzig University German Centre for Integrative Biodiversity Research (iDiv) Halle-Jena-Leipzig
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article Who Wins from Emissions Trading? Evidence from California Abstract Researchers and environmental policy advocates have raised questions regarding the distributional impacts of emissions trading programs, a.k.a. “cap-and-trade”. While previous research has been careful to identify the causal effect of emissions trading on emissions reductions (Fowlie et al. in Am Econ Rev 102(2):965–993, 2012, hereafter FHM), we argue that existing estimates of differential impacts on demographic groups have relied on unrealistic assumptions regarding pollution dispersion. In this paper, we estimate the emissions reduction due to the RECLAIM cap-and-trade program in Southern California following the identification strategy of FHM, but we relax the assumption of uniform dispersion surrounding point sources. We model the transport of effluents using a state-of-the-science dispersion model to determine the areas impacted by emissions from each source. Importantly, conditional on race and ethnicity, we find that higher income areas receive larger reductions in pollution under cap-and-trade. Furthermore, conditional on income (or poverty rates), we find that Blacks benefit while Hispanics lose relative to whites under RECLAIM. Cap-and-trade, Emissions trading, Environmental justice, Distribution, Pollution dispersion 3 2018 71 11 5 Environmental and Resource Economics 703 727 http://link.springer.com/10.1007/s10640-017-0180-1 text/html Abstract Corbett Grainger corbett.grainger@wisc.edu University of Wisconsin – Madison Thanicha Ruangmas ruangmas@wisc.edu University of Wisconsin – Madison
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article Correction to: Defining the Abatement Cost in Presence of Learning-by-Doing: Application to the Fuel Cell Electric Vehicle The correct affiliation for Anna Creti is: Université Paris-Dauphine, PSL Research University, LEDa, CGEMP, 75016 Paris, France. 3 2018 71 11 9 Environmental and Resource Economics 801 801 http://link.springer.com/10.1007/s10640-017-0188-6 text/html Abstract Anna Creti Université Paris-Dauphine, PSL Research University Alena Kotelnikova Université Paris-Saclay Guy Meunier guy.meunier@ivry.inra.fr Université Paris-Saclay INRA-UR1303 ALISS Jean-Pierre Ponssard Université Paris-Saclay Université Paris-Saclay
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article Non-market Value of Winter Outdoor Recreation in the Swiss Alps: The Case of Val Bedretto Abstract A longstanding interest from environmental economists on winter outdoor recreation has overlooked activities practiced outside the boundaries of winter resorts—e.g. ski mountaineering. This paper implements the Travel Cost Method to estimate consumer surplus per season derived from ski mountaineering and snowshoeing in Val Bedretto—a valley located in the Swiss Alps. In addition, the Contingent Behavior Method is used to estimate the changes in welfare associated with the construction of an alpine center that would provide services aiming to reduce the risk of injury and death associated with winter outdoor recreation. The data is analyzed by means of latent class panel on-site count models. The latent class approach allows us to identify subpopulations that benefit from the alpine center. The results show that 33% of visitors would experience an increase in their consumer surplus per season equivalent to €31 per visitor. Winter outdoor recreation, Travel cost method, Contingent behavior method, Ski mountaineering, Snowshoeing, Switzerland 3 2018 71 11 6 Environmental and Resource Economics 729 754 Q51 Q57 http://link.springer.com/10.1007/s10640-017-0181-0 text/html Abstract Massimo Filippini mfilippini@ethz.ch ETH-Zurich Università della Svizzera Italiana, USI William Greene wgreene@stern.nyu.edu New York University Adan L. Martinez-Cruz adan.martinez@cide.edu ETH-Zurich Centro de Investigación y Docencia Económicas (CIDE)
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article Environmental Taxation, Inequality and Engel’s Law: The Double Dividend of Redistribution Abstract Empirical evidence shows that low-income households spend a high share of their income on pollution-intensive goods. This fuels the concern that an environmental tax reform could be regressive. We employ a framework which accounts for the distributional effect of environmental taxes and the recycling of the revenues on both households and firms to quantify changes in the optimal tax structure and the equity impacts of an environmental tax reform. We characterize when an optimal environmental tax reform does not increase inequality, even if the tax system before the reform is optimal from a non-environmental point of view. If the tax system before the reform is calibrated to stylized data—and is thus non-optimal—we find that there is a large scope for inequality reduction, even if the government is restricted in its recycling options. Environmental tax reform, Double dividend, Revenue recycling, Inequality, Distribution, Non-homothetic preferences 3 2018 71 11 1 Environmental and Resource Economics 605 624 D58 D62 E62 H21 H23 http://link.springer.com/10.1007/s10640-016-0070-y text/html Abstract David Klenert klenert@mcc-berlin.net Mercator Research Institute on Global Commons and Climate Change (MCC) Potsdam Institute for Climate Impact Research Technical University of Berlin Gregor Schwerhoff schwerhoff@mcc-berlin.net Mercator Research Institute on Global Commons and Climate Change (MCC) Ottmar Edenhofer edenhofer@pik-potsdam.de Mercator Research Institute on Global Commons and Climate Change (MCC) Potsdam Institute for Climate Impact Research Technical University of Berlin Linus Mattauch linus.mattauch@ouce.ox.ac.uk Mercator Research Institute on Global Commons and Climate Change (MCC) School of Geography and the Environment, University of Oxford
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article The Value of Energy Efficiency and the Role of Expected Heating Costs Abstract The German Energy Performance of Buildings Directive requires sellers on the housing market to provide detailed information on expected yearly energy consumption per square meter (energy performance, EPS). This paper uses variation in local fuel prices and climate, fuel types, and building ages to analyse the relationship between expected energy cost savings from energy efficient building structure and house prices in a data set of listing prices from all regions of Germany. Results suggest that heating cost considerations are less relevant than previously thought. Climate, Energy efficiency, Heating fuel prices, House price capitalisation 3 2018 71 11 4 Environmental and Resource Economics 671 701 R3 Q4 Q5 http://link.springer.com/10.1007/s10640-017-0179-7 text/html Abstract Andreas Mense andreas.mense@fau.de Friedrich-Alexander-Universität Erlangen-Nürnberg
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article How Much Does Wind Power Reduce $$\text {CO}_{2}$$ CO 2 Emissions? Evidence from the Irish Single Electricity Market Abstract This paper evaluates the effect of wind generation on $$\text {CO}_{2}$$ CO 2 emissions using 2008–2012 historical data for the Irish Single Electricity Market. Wind generation displaces $$\text {CO}_{2}$$ CO 2 emissions, as expected, in line with the average system emissions. Over the whole period, wind generation avoided about 8.8 million tons of $$\text {CO}_{2}$$ CO 2 , equivalent to about 12% of total system emissions. To understand what drives the level of abatement we evaluate the results by technology and determine that wind generation has similar effects on total emissions from CCGT and coal plants, due to the higher carbon content of coal. Each MWh of wind, however, replaces more generation from CCGTs than from coal plants, in proportion to their generation. We also test the hypothesis that as wind displaces baseload plants it pushes them to generate less efficiently, but find no evidence of a strong negative effect of wind on CCGT or coal plant efficiency. Finally wind displaces about 2.5% fewer emissions when the pumped storage plant is on outage, suggesting that wind is more effective when paired with a flexible system. Carbon dioxide emissions, Electricity, Ireland, Wind generation, Storage 3 2018 71 11 3 Environmental and Resource Economics 645 669 http://link.springer.com/10.1007/s10640-017-0178-8 text/html Abstract Valeria Di Cosmo Economic and Social Research Institute Trinity College Dublin Laura Malaguzzi Valeri lauramava@gmail.com Economic and Social Research Institute
oai:RePEc:kap:enreec:v:71:y:2018:i:3:d:10.1007_s10640-017-0183-y2018-11-08RePEc:kap:enreec
article Defining the Abatement Cost in Presence of Learning-by-Doing: Application to the Fuel Cell Electric Vehicle Abstract We consider a partial equilibrium model to study the optimal phasing out of polluting goods by green goods. The unit production cost of the green goods involves convexity and learning-by-doing. The total cost for the social planner includes the private cost of production and the social cost of carbon, assumed to be exogenous and growing at the social discount rate. Under these assumptions the optimization problem can be decomposed in two questions: (i) when to launch a given schedule; (ii) at which rate the transition should be completed that is, the design of a transition schedule as such. The first question can be solved using a simple indicator interpreted as the MAC of the whole schedule, possibly non optimal. The case of hydrogen vehicle (Fuel Cell Electric Vehicles) offers an illustration of our results. Using data from the German market we show that the 2015–2050 trajectory foreseen by the industry would be consistent with a carbon price at 52€/t. The transition cost to achieve a 7.5 M car park in 2050 is estimated at 21.6 billion € that is, to JEl 4% discount rate, 115 € annually for each vehicle which would abate 2.18 tCO $$_2$$ 2 per year. Dynamic abatement costs, Learning by doing, Fuel cell electric vehicles 3 2018 71 11 8 Environmental and Resource Economics 777 800 Q55 Q42 C61 http://link.springer.com/10.1007/s10640-017-0183-y text/html Abstract Anna Creti Ecole Polytechnique, Université Paris-Saclay Alena Kotelnikova Ecole Polytechnique, Université Paris-Saclay Guy Meunier guy.meunier@ivry.inra.fr Ecole Polytechnique, Université Paris-Saclay INRA-UR1303 ALISS Jean-Pierre Ponssard Ecole Polytechnique, Université Paris-Saclay Université Paris-Saclay
oai:RePEc:kap:enreec:v:71:y:2018:i:3:d:10.1007_s10640-017-0182-z2018-11-08RePEc:kap:enreec
article Valuing Air Quality in Indonesia Using Households’ Locational Choices Abstract Air quality is already at unprecedented levels in many developing countries and is projected to worsen up until 2050. At the same time, despite the known adverse impacts of air pollution, questions remain of willingness-to-pay for cleaner air as existing studies are scarce and have several endogeneity concerns. To address this knowledge gap, I apply a locational equilibrium model to data from Indonesia. This model exploits migration patterns induced by spatial variation in air quality, wages, and cost-of-living to value air quality. I control for (a) migration distance and religious preferences, and (b) endogeneity of air pollution using a wind- and distance-based fire hotspots instrument. My estimates of MWTP of $$\hbox {PM}_{2.5}$$ PM 2.5 are higher than results from hedonic property models. I also consider heterogeneous MWTP and show that households with children and higher education level have larger valuation for clean air. In sum, this paper demonstrates a potentially novel and rigorous tool to value air quality improvements in developing countries and is an important first step to help policymakers evaluate policies to contain this growing problem. Indonesia, Horizontal sorting, Air quality, Migration, Tropical forest fires 3 2018 71 11 7 Environmental and Resource Economics 755 776 http://link.springer.com/10.1007/s10640-017-0182-z text/html Abstract Jie-Sheng Tan Soo jiesheng.tan@nus.edu.sg National University of Singapore
oai:RePEc:kap:enreec:v:71:y:2018:i:3:d:10.1007_s10640-017-0184-x2018-11-08RePEc:kap:enreec
article Emission Trading with Fiscal Externalities: The Case for a Common Carbon Tax for the Non-ETS Emissions in the EU Abstract A government is fiscally constrained if it is unable to raise sufficient tax revenue to finance the first-best level of public spending. When involved in emission trading, a fiscally constrained government will potentially seek to close its fiscal gap through emission permit sales. This fiscal incentive therefore generates a fiscal externality in the permit market that is endogenous to the extent of fiscal constrainedness among the participating countries. Our theory explains how, and when, fiscal externalities may be expected to arise. Moreover, we show that in a permit market equilibrium with fiscal externalities, the initial allocation of emission permits between countries will affect: (1) the price of emission permits, (2) the global distribution of abatement effort, and (3) total greenhouse gas mitigation costs. This is contrary to the textbook model of emission permit markets. Our findings are especially relevant for the EU which is about to allow for trading in emission rights between EU member countries for all emissions outside the European Emissions Trading System. Emission permit trade, Fiscal constraints, Fiscal incentive, Carbon tax 3 2018 71 11 10 Environmental and Resource Economics 803 823 http://link.springer.com/10.1007/s10640-017-0184-x text/html Abstract Jørgen Juel Andersen BI Norwegian Business School Mads Greaker mgr@ssb.no Statistics Norway
oai:RePEc:kap:enreec:v:71:y:2018:i:3:d:10.1007_s10640-017-0177-92018-11-08RePEc:kap:enreec
article The Adding-Up Test in an Incentivized Value Elicitation Mechanism: The Role of the Income Effect Abstract In the context of testing the construct validity of stated preference studies, some researchers advocate the use of an “adding-up test” designed to gauge whether elicited values are sufficiently sensitive to a change in the scope (i.e. size) of a good. Crucial to the applicability of this test in practice, which relies on endowing a subsample of respondents with a good free of charge, is that the income effects due to endowment are negligible. In this study, we apply the adding-up test in an experimental value elicitation format to examine the potential effect of endowment as part of the test design on the adding-up property of elicited values. The results show that the adding-up property can be affected by free provision of part of the bundle. Adding-up test, Experimental valuation, Income effect, Willingness to pay 3 2018 71 11 2 Environmental and Resource Economics 625 644 http://link.springer.com/10.1007/s10640-017-0177-9 text/html Abstract Levan Elbakidze levan.elbakidze@mail.wvu.edu West Virginia University Rodolfo M. Nayga rnayga@uark.edu University of Arkansas Norwegian Institute of Bioeconomy Research NBER
oai:RePEc:kap:enreec:v::y::i::d:10.1007_s10640-020-00444-x2020-07-13RePEc:kap:enreec
article Linking Human Destruction of Nature to COVID-19 Increases Support for Wildlife Conservation Policies Abstract This paper investigates if narratives varying the cause of the COVID-19 pandemic affects pro-wildlife conservation outcomes. In a pre-registered online experiment (N = 1081), we randomly allocated subjects to either a control group or to one of three narrative treatment groups, each presenting a different likely cause of the COVID-19 outbreak: an animal cause; an animal and human cause (AHC); and an animal, human or lab cause. We found that the AHC narrative elicited significantly greater pro-conservation policy support, especially for bans in the commercial trade of wildlife, when compared to the control group. Possible mechanisms driving this effect are that AHC narratives were less familiar, elicited higher mental and emotional engagement, and induced feelings that firms and governments are responsible for mitigating wildlife extinction. Narratives, Communication, Conservation, Wildlife, Extinction, Conservation policy, Environmental policy, Prosocial behaviour, Experiment, COVID-19 Environmental and Resource Economics 1 37 D62 D64 D83 Q20 Q28 C99 http://link.springer.com/10.1007/s10640-020-00444-x text/html Abstract Ganga Shreedhar G.S.Shreedhar@lse.ac.uk London School of Economics and Political Science Susana Mourato London School of Economics and Political Science
oai:RePEc:kap:enreec:v::y::i::d:10.1007_s10640-020-00442-z2020-07-13RePEc:kap:enreec
article The Economy, Climate Change and Infectious Diseases: Links and Policy Implications Abstract This short paper provides a modeling framework for unifying the economy, climate change and the outbreak of infectious diseases such as the recent COVID-19 pandemic. We stress that continuous growth of consumption activities, capital accumulation and climate change could increase the potential of the epidemic, its contact number or the probability of its arrival. This framework of analysis allows us to think of infectious disease policies in two stages. In the short run, containment policies like social distancing could help to stop the epidemic. In the medium and the long run, economic policies could help to reduce the potential of the epidemic or the probability of its emergence. SIR model, Epidemic, Climate change, Containment policy, Regime shift Environmental and Resource Economics 1 14 http://link.springer.com/10.1007/s10640-020-00442-z text/html Abstract William Brock University of Wisconsin University of Missouri Anastasios Xepapadeas xepapad@aueb.gr University of Economics and Business University of Bologna
oai:RePEc:kap:enreec:v::y::i::d:10.1007_s10640-020-00438-92020-07-13RePEc:kap:enreec
article Environmental and Regulatory Concerns During the COVID-19 Pandemic: Results from the Pandemic Food and Stigma Survey Abstract In this article, we present data from the monthly Pandemic Food and Stigma Survey (PFSS), a nationwide representative sample of adults in the United States designed to identify how the pandemic is affecting concerns about food and the environment. Two surveys were conducted in May and June 2020. Our analysis suggests that the public’s concern about contracting COVID-19 has been high; however, infection with COVID-19 was not the only concern. A majority of respondents remained strongly concerned about environmental issues, such as climate change, while responses to sudden relaxations of environmental and food safety policies varied. We analyze the PFSS data to identify factors associated with concerns about pandemic and environmental regulatory changes. In general, we find that people whose food security has been threatened by COVID-19 remain concerned about relaxation of environmental regulations, and those most inclined to take steps to reduce spread of the virus, such as wearing masks and social distancing, are more concerned about relaxed regulations than those less willing to take mitigating actions. COVID-19, Environmental attitudes, Environmental regulations, Food safety regulations Environmental and Resource Economics 1 10 C83 I12 I18 Q58 http://link.springer.com/10.1007/s10640-020-00438-9 text/html Abstract Maik Kecinski University of Delaware Kent D. Messer messer@udel.edu University of Delaware Brandon R. McFadden University of Delaware Trey Malone Michigan State University
oai:RePEc:kap:enreec:v::y::i::d:10.1007_s10640-020-00445-w2020-07-13RePEc:kap:enreec
article Public Awareness of Nature and the Environment During the COVID-19 Crisis Abstract As our behavioral patterns change due to the COVID-19 crisis, our impact on nature and the environment changes too. Pollution levels are showing significant reductions. People are more aware of the importance of access to local green and blue spaces. By analyzing online search behavior in twenty European countries, we investigate how public awareness of nature and the environment has evolved during the COVID-19 crisis. We find that the crisis goes hand in hand with a positive shift in public awareness of nature-related topics, but that awareness of environmental topics remains unaffected. While the decreasing pollution levels and media attention may reduce the overall sense of urgency to tackle pollution problems, the increased experience with local natural resources may strengthen public support for a recovery program that puts the transition towards a more sustainable economic system centrally. Public awareness, Google Trends, COVID-19, Nature, Environment Environmental and Resource Economics 1 11 http://link.springer.com/10.1007/s10640-020-00445-w text/html Abstract Sandra Rousseau sandra.rousseau@kuleuven.be KU Leuven Nick Deschacht KU Leuven
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article Short-windedness Would Weaken Effective Climate Policy Abstract Most states have implemented quite strict measures designed to slow down the spread of the coronavirus among their populations. For most sectors, these measures have resulted in a significant reduction of economic activity, output, and hence also output-related emissions. Commitment to these measures, apparently regardless of the economic costs involved, is considered by some people to be a blueprint for the commitment required to mitigate climate change and to achieve the Paris climate targets. However, when it comes to devising an efficient climate policy, the differences between the two crises—cororonavirus and climate change—need to be taken more seriously than the similarities. Alarming have been the various calls to put a quick end to corona prevention measures and the restrictions they place on public and economic activity, indicative as they are of the priority accorded to high discount rates and the absence of precautionary thinking among policy-makers. Both the differences between the two crises themselves and the similarities in the reluctance to focus on achieving (more) long-term benefits emphasize once again the need for long-term commitment to climate policies in line with agreed targets. Climate policy, Carbon prices, Economic recovery, Corona virus, Lock-down Environmental and Resource Economics 1 4 http://link.springer.com/10.1007/s10640-020-00447-8 text/html Abstract Wilfried Rickels wilfried.rickels@ifw-kiel.de Kiel Institute for the World Economy Sonja Peterson Kiel Institute for the World Economy
oai:RePEc:kap:enreec:v:87:y:2024:i:2:d:10.1007_s10640-023-00820-32024-02-08RePEc:kap:enreec
article Wind power deployment and the impact of spatial planning policies Abstract Spatio-environmental externalities of renewable energy deployment are mainly managed through spatial planning policies, like regional expansion goals, zoning designated areas, or setback distances. We provide a quantitative analysis of how effectively spatial planning policies can steer RES deployment, using the example of onshore wind power expansion in Germany. Based on a novel georeferenced dataset of wind turbines and spatial planning policies, we use a dynamic panel data model to explain yearly additions in wind power capacities. Most importantly, we find a strong positive impact of zoning specific land areas for wind power deployment. An additional square kilometer of designated area leads to an increase of 4.6% of yearly capacity additions per county. Not only the amount of designated area matters, but also the size and shape of each individual designated area. Small and elongated areas are, on average, associated with more wind power expansion than large and compact areas. Moreover, we find that in states with an expansion goal, capacity additions are 2.6% higher. In contrast, increasing the setback distance between turbine sites and settlements by 100 m is associated with reductions of yearly capacity additions by about 3.1%. Our findings show that policymakers can resort to spatial planning instruments in order to effectively arrange wind power deployment with other land uses. Environmental regulation, Multi-level governance, Panel data, Wind power, Spatial planning 2 2024 87 2 7 Environmental and Resource Economics 491 550 C23 H77 R52 R58 http://link.springer.com/10.1007/s10640-023-00820-3 text/html Abstract Jan-Niklas Meier meier@wifa.uni-leipzig.de Leipzig University Paul Lehmann lehmann@wifa.uni-leipzig.de Leipzig University Bernd Süssmuth suessmuth@wifa.uni-leipzig.de Leipzig University Stephan Wedekind sw52lezo@studserv.uni-leipzig.de Leipzig University
oai:RePEc:kap:enreec:v:87:y:2024:i:2:d:10.1007_s10640-023-00760-y2024-02-08RePEc:kap:enreec
article Correction to: The Financial and Environmental Consequences of Renewable Energy Exclusion Zones 2 2024 87 2 3 Environmental and Resource Economics 399 400 http://link.springer.com/10.1007/s10640-023-00760-y text/html Abstract Gemma Delafield g.delafield3@exeter.ac.uk University of Exeter Business School Greg S. Smith University of Exeter Business School CSIRO Land and Water Brett Day University of Exeter Business School Robert Holland University of Southampton Andrew Lovett University of East Anglia
oai:RePEc:kap:enreec:v:87:y:2024:i:2:d:10.1007_s10640-023-00777-32024-02-08RePEc:kap:enreec
article Social Costs of Setback Distances for Onshore Wind Turbines: A Model Analysis Applied to the German State of Saxony Abstract Wind power is a key for decarbonizing economies. Yet, wind turbines can produce negative environmental externalities. These include bird collisions and disamenities for residents. Setback distances for onshore wind turbines to settlements and bird nests are a common policy instrument to address these externalities. In this paper, we evaluate the cost-effectiveness of setback distances. We use a spatially-explicit model to investigate the social costs of different options for setbacks to settlements and red kite nests. In terms of social costs, we consider production costs and external costs associated with residents’ disamenities and red kite impacts given an exogenously set wind energy production target. The model is applied using data for the German State of Saxony. Three key results are: (1) More restrictive setbacks may increase social costs. (2) Uniform red kite setbacks reduce social costs rather than uniform settlement setbacks. (3) Differentiated settlement setbacks for different settlement types lead to substantially lower social costs than uniform setbacks. Wind turbines, Externalities, Setback distances, Social costs, Spatially-explicit modeling 2 2024 87 2 5 Environmental and Resource Economics 437 463 http://link.springer.com/10.1007/s10640-023-00777-3 text/html Abstract Felix Reutter reutter@wifa.uni-leipzig.de Leipzig University Helmholtz Centre for Environmental Research – UFZ Martin Drechsler Helmholtz Centre for Environmental Research – UFZ Brandenburg University of Technology Cottbus-Senftenberg Erik Gawel Leipzig University Helmholtz Centre for Environmental Research – UFZ Paul Lehmann Leipzig University Helmholtz Centre for Environmental Research – UFZ
oai:RePEc:kap:enreec:v:87:y:2024:i:2:d:10.1007_s10640-022-00746-22024-02-08RePEc:kap:enreec
article Cost-Potential Curves of Onshore Wind Energy: the Role of Disamenity Costs Abstract Numerical optimization models are used to develop scenarios of the future energy system. Usually, they optimize the energy mix subject to engineering costs such as equipment and fuel. For onshore wind energy, some of these models use cost-potential curves that indicate how much electricity can be generated at what cost. These curves are upward sloping mainly because windy sites are occupied first and further expanding wind energy means deploying less favorable resources. Meanwhile, real-world wind energy expansion is curbed by local resistance, regulatory constraints, and legal challenges. This presumably reflects the perceived adverse effect that onshore wind energy has on the local human population, as well as other negative external effects. These disamenity costs are at the core of this paper. We provide a comprehensive and consistent set of cost-potential curves of wind energy for all European countries that include disamenity costs, and which can be used in energy system modeling. We combine existing valuation of disamenity costs from the literature that describe the costs as a function of the distance between turbine and households with gridded population data, granular geospatial data of wind speeds, and additional land-use constraints to calculate such curves. We find that disamenity costs are not a game changer: for most countries and assumptions, the marginal levelized cost of onshore wind energy increase by 0.2–12.5 €/MWh. Cost-potential curves, Energy system modeling, Disamenity costs, Onshore wind energy, Setback distances 2 2024 87 2 1 Environmental and Resource Economics 347 368 http://link.springer.com/10.1007/s10640-022-00746-2 text/html Abstract Oliver Ruhnau ruhnau@hertie-school.org Hertie School Anselm Eicke Hertie School Raffaele Sgarlato Hertie School Tim Tröndle ETH Zurich Lion Hirth Hertie School
oai:RePEc:kap:enreec:v:87:y:2024:i:2:d:10.1007_s10640-022-00749-z2024-02-08RePEc:kap:enreec
article The Financial and Environmental Consequences of Renewable Energy Exclusion Zones Abstract As countries decarbonise, the competition for land between energy generation, nature conservation and food production will likely increase. To counter this, modelling, and sometimes energy policies, use exclusion zones to restrict energy deployment from land deemed as important to society. This paper applies the spatially-explicit ADVENT-NEV model to Great Britain to determine the cost imposed on the energy system when either environmental or food production exclusion zones are applied. Results show that exclusion zones impose a cost of up to £0.63 billion (B), £19.17 B and £1.33 B for the solar, wind, and bioenergy pathways. These costs give an indication of the value being placed on protecting these areas of land. When multiple exclusions are imposed on bioenergy, the high pathway is infeasible indicating a more flexible approach may be needed to meet net zero ambitions. The model also shows how the value of ecosystem services changes when exclusion zones are applied, highlighting how some exclusions increase non-market costs whereas others decrease them. In several cases exclusion zones are shown to increase social costs, the opposite of their intended use. For these exclusions to be justifiable, the unobserved values missing from the model must be as large as these increases. Ecosystem services, Environmental restrictions, GIS, Low carbon energy, Spatial analysis 2 2024 87 2 2 Environmental and Resource Economics 369 398 http://link.springer.com/10.1007/s10640-022-00749-z text/html Abstract Gemma Delafield g.delafield3@exeter.ac.uk University of Exeter Business School Greg S. Smith University of Exeter Business School CSIRO Land and Water Brett Day University of Exeter Business School Robert Holland University of Southampton Andrew Lovett University of East Anglia
oai:RePEc:kap:enreec:v:87:y:2024:i:2:d:10.1007_s10640-023-00790-62024-02-08RePEc:kap:enreec
article Evaluate the Impacts of Wind Farm Facilities on Land Values with Geographically-Linked Microdata in China Abstract This study explores the impact of wind facilities on land values based on wind farm construction and land transaction datasets in China from 2005 to 2017. We implement a two-way fixed effects model to estimate the causal effects of the siting of wind farms on land prices. Our results show that the siting of wind farms significantly impacts land transaction prices. On average, land parcels located within 10 km of a wind farm enjoy a 4.78% price premium. However, land parcels located within 1 to 3 km of a wind farm experience depreciation, while lands located within 3 to 6 km of a wind turbine experience an increase on average. We further find that offshore wind farms are viewed more favorably by nearby residents compared to inland wind farms. Wind farms, Land values, Renewable energy, Difference-in-differences 2 2024 87 2 6 Environmental and Resource Economics 465 489 http://link.springer.com/10.1007/s10640-023-00790-6 text/html Abstract Yingdan Mei meiyingdan@vip.sina.com Renmin University of China Pengfei Liu pengfei_liu@uri.edu University of Rhode Island Lina Meng lnmeng@xmu.edu.cn Xiamen University Lu Lin linlu26@hotmail.com China University of Petroleum Beijing
oai:RePEc:kap:enreec:v:87:y:2024:i:2:d:10.1007_s10640-024-00839-02024-02-08RePEc:kap:enreec
article Correction to: Wind Power Deployment and the Impact of Spatial Planning Policies 2 2024 87 2 8 Environmental and Resource Economics 551 552 http://link.springer.com/10.1007/s10640-024-00839-0 text/html Abstract Jan-Niklas Meier meier@wifa.uni-leipzig.de Leipzig University Helmholtz Centre for Environmental Research – UFZ Paul Lehmann lehmann@wifa.uni-leipzig.de Leipzig University Helmholtz Centre for Environmental Research – UFZ Bernd Süssmuth suessmuth@wifa.uni-leipzig.de Leipzig University Stephan Wedekind sw52lezo@studserv.uni-leipzig.de Leipzig University
oai:RePEc:kap:enreec:v:87:y:2024:i:2:d:10.1007_s10640-023-00764-82024-02-08RePEc:kap:enreec
article Spatial Trade-Offs in National Land-Based Wind Power Production in Times of Biodiversity and Climate Crises Abstract Energy generated by land-based wind power is expected to play a crucial role in the decarbonisation of the economy. However, with the looming biodiversity and nature crises, spatial allocation of wind power can no longer be considered solely a trade-off against local disamenity costs. Emphasis should also be put on wider environmental impacts, especially if these challenge the sustainability of the renewable energy transition. We suggest a modelling system for selecting among a pool of potential wind power plants (WPPs) by combining an energy system model with a GIS analysis of WPP sites and surrounding viewscapes. The modelling approach integrates monetised local disamenity and carbon sequestration costs and places constraints on areas of importance for wilderness and biodiversity (W&B). Simulating scenarios for the Norwegian energy system towards 2050, we find that the southern part of Norway is the most favourable region for wind power siting when only the energy system surplus is considered. However, when local disamenity costs (and to a lesser extent carbon costs) and W&B constraints are added successively to the scenarios, it becomes increasingly beneficial to site WPPs in the northern part of Norway. We find that the W&B constraints have the largest impact on the spatial distribution of WPPs, while the monetised costs of satisfying these constraints are relatively small. Overall, our results show that there is a trade-off between local disamenities and loss of W&B. Siting wind power plants outside the visual proximity of households has a negative impact on W&B. Wind power, Spatial analysis, Energy system model, Environmental costs, Disamenity costs 2 2024 87 2 4 Environmental and Resource Economics 401 436 C61 D62 Q24 Q42 Q48 Q51 Q57 Q58 http://link.springer.com/10.1007/s10640-023-00764-8 text/html Abstract Kristine Grimsrud kristine.grimsrud@ssb.no Statistics Norway Cathrine Hagem Statistics Norway Kristina Haaskjold Institute for Energy Technology Henrik Lindhjem Menon Centre for Environmental and Resource Economics Megan Nowell Norwegian Institute for Nature Research
oai:RePEc:kap:enreec:v::y::i::d:10.1007_s10640-020-00416-12020-04-10RePEc:kap:enreec
article Worshipping the Tiger: Modeling Non-use Existence Values of Wildlife Spiritual Services Abstract Several indigenous tribes around the world derive spiritual value from revering fauna and flora species. Species conservation is not a prime objective of such traditions but can be an unintended consequence. Conventional species conservation practices ignore this spiritual value and tribes are often evicted from protected areas. We use the existence value framework to develop a coupled ecological-economic model of the use and non-use, existence values of wildlife for a tribe that derives spiritual value from a wildlife population. We calibrate the model for the Biligiri Rangaswamy Temple (BRT) Tiger Reserve in India with the resident Soligas tribe who consider tigers as sacred and back out an existence value of tigers in this reserve from a tribe manager’s perspective. The model ascertains tiger population dynamics under several management scenarios. Steady-state convergence is observed under secure property rights for the Soligas. Scenarios in which they are evicted from the BRT reserve and lose their property rights yields localized tiger extinction. Finally, we generate a marginal existence value function and discuss the potential for using existence value estimates in guiding conservation policy. Tiger, Public goods, Existence value, Conservation, Bioeconomic model Q20, Q51, Q57, C61 Environmental and Resource Economics 1 22 http://link.springer.com/10.1007/s10640-020-00416-1 text/html Abstract Adrian A. Lopes alopes@aus.edu American University of Sharjah Shady S. Atallah Shadi.Atallah@unh.edu University of New Hampshire
oai:RePEc:kap:enreec:v:85:y:2023:i:1:d:10.1007_s10640-022-00755-12023-04-17RePEc:kap:enreec
article The Impact of Climate Change on Risk and Return in Indian Agriculture Abstract We investigate the extent to which climate change will result in insurable and uninsurable losses for farmers in India. Changes in temperature and precipitation patterns may increase the volatility of farmers’ yields, leading to rising but insurable risk. These changes may also reduce the expected yield in an ‘average year’, causing uninsurable reductions in the returns to farming. We use a multi-run climate model to predict the future distribution of potential yields at the district level for sixteen major crops. For the average district, we project a sharp decline in expected agricultural revenue, but small shifts in volatility. This is because weather draws resulting in extremely low agricultural returns—what had once been 1-in-100-year events—are predicted to become the norm by the end of the century. Our projections therefore imply substantial uninsurable losses from the changing climate for Indian farmers. Agriculture, Climate change, Crop yield, Extreme events, India, Volatility 1 2023 85 5 1 Environmental and Resource Economics 1 27 http://link.springer.com/10.1007/s10640-022-00755-1 text/html Abstract Francisco Costa fcosta@udel.edu University of Delaware Fabien Forge fforg097@uottawa.ca University of Ottawa Jason Garred Jason.Garred@uottawa.ca University of Ottawa João Paulo Pessoa joao.pessoa@fgv.br Sao Paulo School of Economics - FGV and Centre for Economic Performance
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article Human Capital, Trade Competitiveness and Environmental Efficiency Convergence Across Asia Pacific Countries Abstract This study mainly investigates 14 Asia Pacific economies’ environmental efficiency. Departing from previous studies ignoring environmental technology heterogeneity, we evaluate environmental efficiency through metafrontier super epsilon based model (EBM). We compare environmental efficiency convergence across different regions via unit root test and truncated regressions. We analyze how trade competitiveness impact environmental efficiency. We also explore effect of green technology and human capital on environmental efficiency from the perspective of endogenous growth. Our findings indicate that stochastic and absolute β-convergence tendencies were confirmed. Human capital can enhance environmental efficiency convergence. Trade competitiveness showed a mixed impact on environmental efficiency convergence, confirming scale, composition and technical effects. It is better to enhance human capital, strengthening environmental regulations under international competition as well as relentlessly pursuing green industrialization across Asia Pacific countries. Environmental efficiency, Convergence, Human capital, Trade competitiveness 1 2023 85 5 4 Environmental and Resource Economics 109 132 http://link.springer.com/10.1007/s10640-023-00758-6 text/html Abstract Florence Appiah-Twum Jiangsu University Xingle Long longxingle@163.com Jiangsu University
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article Waste Import Bans and Environmental Quality: Evidence from China’s Electronic Waste Disposal Towns Abstract In 2018, the Chinese government introduced a ban on a variety of imported waste, including waste plastics from living sources. Beginning in 2021, the ban expanded to include all foreign solid waste. This paper investigates the impact of the current ban on the air quality of China’s electronic waste (e-waste) disposal towns. Using a daily panel of China’s major e-waste disposal hubs from 2017 to 2019, we estimate the effect of the ban on air pollution within Difference-in-Difference (DID) and Regression Discontinuity (RD) frameworks: We find that local air pollution decreased by 15%–28% due to the ban. We also find the imported-waste ban is cost-effective: the potential health benefits considerably outweigh the extra cost borne by downstream industries using recycled e-waste as an input. China’s air quality improvement informs similar policies on waste import control being considered by other developing countries. Waste imports, Air pollution, China environment 1 2023 85 5 3 Environmental and Resource Economics 65 108 Q53 Q56 Q58 F64 http://link.springer.com/10.1007/s10640-022-00756-0 text/html Abstract Liang Guo guoliang@suibe.edu.cn Shanghai University of International Business and Economics W. D. Walls wdwalls@ucalgary.ca University of Calgary Xiaoli Zheng xzhengsh@gmail.com Shanghai University of International Business and Economics
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article Policies to Promote Carbon Capture and Storage Technologies Asbstract We model the value chain of Carbon Capture and Storage (CCS) by focusing on the decisions taken by actors involved in either capture, transport or storage of CO2. Plants emitting CO2 are located apart. If these invest in carbon capture facilities, the captured CO2 is transported to terminals, which again transport the received amount of CO2 to a storage site. Because of network effects, we may have three equilibria: one with no CCS, one with low investments in CCS, and one with high investments in CCS. In a numerical specification of the model, we find that the market for CCS may be in a state of excess inertia, i.e., even if the social cost of carbon is sufficiently high to justify investment from a social point of view, the market actors may not succeed in coordinating their efforts to reach the equilibrium with high investment. The government should then consider offering economic incentives to investments. In addition to the network effect, several other market imperfections exist, such as market power, economics of scale and the environmental externality from CO2 emissions. We identify policy instruments—in addition to a correctly set carbon tax—that will correct for the remaining market imperfections and bring private investments in line with the first-best levels. Without correction, too many terminals are set up and too few plants invest in capture facilities in our reference market structure. Carbon capture and storage, Indirect network effects, Salop circle, Carbon tax, Market imperfections, Tipping points 1 2023 85 5 10 Environmental and Resource Economics 267 302 H23 L13 L51 Q35 Q38 http://link.springer.com/10.1007/s10640-023-00767-5 text/html Abstract Rolf Golombek rolf.golombek@frisch.uio.no Ragnar Frisch Centre for Economic Research Mads Greaker mads.greaker@oslomet.no Oslo Business School at OsloMet Snorre Kverndokk snorre.kverndokk@frisch.uio.no Ragnar Frisch Centre for Economic Research Lin Ma lin.ma@cicero.oslo.no CICERO–Centre for International Climate Research
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article The Impact of Climate Legislation on Trade-Related Carbon Emissions 1996–2018 Abstract We analyse the international impact on carbon emissions from national climate legislation in 111 countries over 1996–2018. We estimate trade-related carbon leakage, or net carbon imports, as the difference between consumption and production emissions. Legislation has had a significant negative and roughly similar impact on both consumption and production emissions. The net impact on trade-related emissions is therefore not statistically significant, neither in the short term (laws passed in the last 3 years) nor the long term (laws older than 3 years). We find a significant negative long-term impact on domestic emissions from laws passed by trade partners. This latter specification corresponds to the traditional definition of carbon leakage. Overall, we conclude that there has been no detrimental effect of climate legislation on international emissions. Climate change legislation, Climate policy, Carbon leakage, Technology spillovers, Production emissions, Consumption emissions 1 2023 85 5 6 Environmental and Resource Economics 167 194 F18 K32 Q54 Q56 Q58 http://link.springer.com/10.1007/s10640-023-00762-w text/html Abstract Shaikh M. S. U. Eskander Kingston University London London School of Economics Sam Fankhauser sam.fankhauser@ouce.ox.ac.uk London School of Economics University of Oxford
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article Blow the Lid Off: Public Complaints, Bargaining Power, and Government Responsiveness on Social Media Abstract Scholars have demonstrated that governments allow citizens to express their opinions and selectively respond to them, yet little is known about how local governments interact with netizens via social media. In this paper, we measure government responsiveness based on whether the government verbally responds to public environmental complaints on social media. Using crawled real-world interactions between citizens and governments on Weibo (a Twitter-like platform), we find that higher bargaining power is associated with a lower likelihood that the government will respond to an environmental complaint against a firm. Local governments in China are more likely to respond to appeals that are likely to attract the attention of the upper-level government. Moreover, involving upper-level government through social media can weaken the bargaining power of industrial giants. Finally, public complaints have a significant short-term impact on corporate environmental performance but have a limited effect on firms with high bargaining power. Government responsiveness, Bargaining power, Social media, Environmental complaint 1 2023 85 5 5 Environmental and Resource Economics 133 166 http://link.springer.com/10.1007/s10640-023-00761-x text/html Abstract Qi Wang 1016713876@qq.com Nanjing University Mengdi Liu liumengdi@uibe.edu.cn University of International Business and Economics Jintao Xu xujt@pku.edu.cn Peking University Bing Zhang zhangb@nju.edu.cn Nanjing University
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article Short-Term Exposure to Air Pollution and Cognitive Performance: New Evidence from China’s College English Test Abstract This paper investigates the impact of air pollution on students’ cognitive performance in a high-stakes exam: China’s College English Test (CET). We match exams taken from 2013 to 2017 at 22 universities across China with hourly air pollution measures from the nearest monitoring stations. Identification leverages a student fixed effects model, which alleviates the concern of omitted variables, such as students’ ability. Our estimates indicate a statistically significant negative impact of fine particulate matters (PM $$_{2.5}$$ 2.5 ) exposure during exam windows on cognitive performance. By focusing on a single language exam, instead of comparing performance across different test subjects, we are able to paint a more accurate picture of the cognitive impact of air pollution. We highlight the importance of short-term air pollution exposure for high-stakes cognitive performance. Our results suggest that temporary defensive measures could be important in mitigating the negative consequences of air pollution. China, Fine particulate matter, Cognitive performance, College English Test 1 2023 85 5 8 Environmental and Resource Economics 211 237 Q53 I23 C23 http://link.springer.com/10.1007/s10640-023-00765-7 text/html Abstract Zhenyu Yao Shenzhen MSU-BIT University Wei Zhang wzb@vt.edu Virginia Tech Xinde Ji University of Florida Weizhe Weng University of Florida
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article A Dual Probabilistic Discounting Approach to Assess Economic and Environmental Impacts Abstract The growing environmental concerns require the characterization of decision support methods that can guide analysts towards more sustainable investment choices. Therefore, in the ex-ante economic evaluations of investments with environmental repercussions, it is of rising interest to give the “right” value to the non-monetary effects in the long term. In this regard, conventional discounting procedures—based on constant rates—are inadequate to evaluate intergenerational environmental effects. With this research we propose an innovative model for estimating discount rates to be used in the Cost–Benefit Analysis (CBA) of projects with long-term environmental effects. The model is based on a two-goods extension of the Ramsey formula, according to which the rate at which environmental impacts are discounted is different from the rate at which monetary benefits are discounted. Compared to the Ramsey model, we propose time-declining functions of the two discount rates to assess the long-run effects of investment projects. To characterize the model, we consider the macroeconomic risk, or we assume that the variable “GDP growth rate” is a stochastic variable. Furthermore, since we propose discount rates to evaluate public projects in line with sustainable development goals, we express environmental quality as a function of the Environmental Performance Index (EPI). Based on the proposed model, we estimate for the first time declining consumption discount rates and declining environmental discount rates for Italy based on empirical data. The estimates of the two discount rates for Italy shows that the environmental discount rate is lower than the consumption one: in fact, the first one starts from a value of 3.0% and arrives at 0.4% after 300 years; while the second one starts from 0.7% and reaches 0.3% at the end of the considered time horizon. The result highlights the importance of estimating country-specific dual and declining discount rates. These discount rates allow appropriate weights to be given to all investment impacts, and therefore also to environmental impacts, compared to conventional discounting. Environmental projects, Dual discounting, Environmental performance index, Economic evaluation of the projects 1 2023 85 5 9 Environmental and Resource Economics 239 265 H43 D61 http://link.springer.com/10.1007/s10640-023-00766-6 text/html Abstract Antonio Nesticò University of Salerno Gabriella Maselli gmaselli@unisa.it University of Salerno Patrizia Ghisellini Parthenope University of Naples Sergio Ulgiati Parthenope University of Naples
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article How to Support Residential Energy Conservation Cost-Effectively? An analysis of Public Financial Schemes in France Abstract We compare the performance of four types of support schemes aimed at improving residential energy efficiency in France: the income tax credit, a grant scheme, the reduction of the value-added tax, and the White Certificates. We use the TREMI dataset which covers close to 14, 000 households that conducted conservation works. To address self-selection bias, we use a double-robust inverse probability weighting estimator. We assess the effect of the adoption of each scheme on the funding acquired, the private and total investment, and the reduction of the household energy expenses. For each scheme, we use the estimates to deduct its cost-effectiveness, the involved redistribution, and its ability to trigger additional investment in energy conservation works. We find funding from the schemes to reduce energy expenses most cost-effectively via the White Certificates. Redistribution is neutral for each of the four schemes: higher and lower income households equally benefit from them. Energy efficiency, Energy conservation, Residential retrofits, Cost-effectiveness, Redistribution, Inverse probability weighting 1 2023 85 5 2 Environmental and Resource Economics 29 63 H23 Q58 http://link.springer.com/10.1007/s10640-022-00754-2 text/html Abstract Bettina Chlond bettina.chlond@zew.de ZEW Mannheim Claire Gavard claire.gavard@gmail.com ZEW Mannheim Lisa Jeuck lisa.jeuck@sustainable.de Ludwig-Maximilians-University Munich
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article Measuring Gains and Losses in Virtual Water Trade from Environmental and Economic Perspectives Abstract Virtual water trade can generate an aggregate value gain or loss when there is a regionally disparity in the value of water resources. This paper proposes a novel integrated model to evaluate the impact of virtual water trade on the gain and loss in both environmental and economic dimensions. Environmentally, when virtual water flows from regions rich in water to regions short of water, the scarcity of water resources at the aggregate level is alleviated and positive gains are obtained. Economically, as virtual water is transferred from economically less developed regions to those that are economically developed, the marginal economic value of water resources is enhanced, resulting in a positive gain. China is characterized by significant disparities in the degree of water scarcity and the level of economic development in different areas of the country. This study therefore focuses on China as a case of how interregional virtual water trade leads to a loss or gain in aggregate value. We employ a Multi-regional Input–Output model to analyze the virtual water flows within China and adopt the Data Envelopment Analysis to evaluate the water shadow price. Results show that the virtual water flow in China in 2015 was mostly from water-scarce to water-rich regions, resulting in a loss of 8 billion m3 of scarce water; however, at the same time, economically developed areas received large amounts of virtual water from less developed areas, thereby generating a net economic gain of 8.5 trillion CNY. In particular, the virtual water trade from Heilongjiang to Shandong yielded the largest of environmental gains, saving 1.65 billion m3 of scarce water, and the virtual water trade from Xinjiang to Guangdong produced the largest of economic gains, hitting 479 billion CNY. This paper aims to serve as an inspiration for regional, national and even global virtual water trade practices. Graphical Abstract Virtual water trade, Scarce water, Shadow price, MRIO, DEA 1 2023 85 5 7 Environmental and Resource Economics 195 209 http://link.springer.com/10.1007/s10640-023-00763-9 text/html Abstract Aixi Han China Agricultural University Fudan University Ao Liu China Agricultural University Zhenshan Guo University of Leeds Yi Liang Rutgers University Li Chai chaili@cau.edu.cn China Agricultural University China Agricultural University
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article Seismic Shifts from Regulations: Spatial Trade-offs in Marine Mammals and the Value of Information from Hydrocarbon Seismic Surveying Abstract Seismic surveys can improve estimates of net private benefits from uncertain hydrocarbon deposits. The Value-of-Information (VOI) can capture these gains. At the same time, seismic surveys impose uncertain damages from noise pollution on marine life. Arctic waters are increasingly attractive exploration locales, but ice cover temporally constrains both surveying and marine mammal species. Thus, damage mitigation requires both temporal and spatial planning. We develop a spatially explicit bio-economic model through which we can calculate the VOI from seismic surveying options alongside potential marine mammal displacements. We demonstrate the model using hydrocarbon exploration opportunities off the Western Greenlandic coast. Lacking estimates for marine mammal sound habitat conservation benefits, we use cost-effectiveness (CEA) as an alternative to weakly informed cost–benefit analysis to identify implicit thresholds as a function of regulatory choices based on different relative spatial values of marine mammal habitat conservation. We check robustness using Monte Carlo (MC) simulations. We illustrate how the combined use of VOI, CEA and MC can ease decision making when uncertainties are compounded and cost–benefit analysis is not feasible. Value of Information (VOI), Cost-effectiveness analysis (CEA), Marine mammals, Marine habitat, Marine noise pollution, Hydrocarbon exploration, Arctic oil and gas exploration, Evaluation of regulatory programs, Spatial bio-economic modelling, Seismic surveys 3 2021 80 11 3 Environmental and Resource Economics 553 585 D83 Q35 Q53 Q57 http://link.springer.com/10.1007/s10640-021-00598-2 text/html Abstract Maarten J. Punt Mj.punt@windesheim.nl Windesheim University of Applied Sciences Brooks A. Kaiser Baka@sam.sdu.dk SEBE, University of Southern Denmark
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article Determinants of Electric Vehicle Diffusion in China Abstract We analyze the effect of four determinants of electric vehicle diffusion in China for a panel of 31 regions for the period 2010–2016. We analyze diffusion of four different electric vehicle types, namely battery electric cars and buses as well as plug-in hybrid electric cars and buses. System GMM panel estimation results show that total monetary subsidies have a positive effect only on the diffusion of battery electric cars. A closer look reveals that subsidies provided by regional governments are decisive for all types of vehicles but the subsidy provided by the central government and its degression over time dilute the overall effect of subsidies and is partly detrimental. Non-monetary ownership policies, such as license-plate lotteries, show a positive effect only for battery electric cars. Availability of public charging infrastructure increases diffusion of all vehicle types. Charging points are relevant for cars, while charging stations are especially decisive for the diffusion of electric buses. Using local environmental conditions as a novel determinant for the diffusion of electric vehicles reveals that the local air pollution influences the diffusion of buses, but not of cars. Electric vehicle, Diffusion, Eco-innovation, China, Innovation policy 3 2021 80 11 1 Environmental and Resource Economics 473 510 L98 O31 O33 Q48 http://link.springer.com/10.1007/s10640-021-00596-4 text/html Abstract Martin Kalthaus martin.kalthaus@uni-jena.de Friedrich Schiller University Jena Jiatang Sun Friedrich Schiller University Jena
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article Do Stringent Environmental Policies Deter FDI? M&A versus Greenfield Abstract Strict environmental regulation may deter foreign direct investment (FDI). The paper develops the hypothesis that regulation predominantly discourages FDI that is conducted as Greenfield investment rather than mergers and acquisitions (M&A). The hypothesis is tested with German firm-level FDI data. Empirically, stricter regulation reduces new Greenfield projects in polluting industries, but indeed has a much smaller impact on the number of M&As. This significant difference is compatible with the fact that existing operations often benefit from grandfathering rules, which provide softer regulation for pre-exisiting plants, and with the expectation that for M&As part of the regulation is capitalized in the purchase price. The heterogeneous effects help explaining mixed results in previous studies that have neglected the mode of entry. Environmental stringency, Entry mode, Pollution haven hypothesis, Foreign direct investment 3 2021 80 11 5 Environmental and Resource Economics 603 636 F23 F64 Q50 Q58 http://link.springer.com/10.1007/s10640-021-00600-x text/html Abstract Sylwia Bialek New York University German Council of Economic Experts Alfons J. Weichenrieder a.weichenrieder@em.uni-frankfurt.de Goethe University Frankfurt Vienna University of Economics and Business CESifo
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article Long-Term Climate Treaties with a Refunding Club Abstract We show that an appropriately-designed “Refunding Club” can simultaneously solve both free-riding problems in mitigating climate change—participating in a coalition with an emission reduction target and enduring voluntary compliance with the target once the coalition has been formed. Countries in the Club pay an initial fee into a fund that is invested in assets. In each period, part of the fund is distributed among the Club members in relation to the emission reductions they have achieved, suitably rescaled by a weighting factor. We show that an appropriate refunding scheme can implement any feasible abatement path a Club wants to implement. The contributions to the initial fund can be used to disentangle efficiency and distributional concerns and/or to make a coalition stable. Making the grand coalition stable in the so-called “modesty approach” requires less than 0.5% of World GDP. Finally, we suggest ways to foster initial participation, to incorporate equity concerns with regard to developing countries, and ways to ease the burden to fill the initial fund. Climate change mitigation, Refunding club, International agreements, Sustainable climate treaty 3 2021 80 11 2 Environmental and Resource Economics 511 552 Q54 H23 H41 http://link.springer.com/10.1007/s10640-021-00597-3 text/html Abstract Hans Gersbach hgersbach@ethz.ch ETH Zurich and CEPR Noemi Hummel nhummel@ispm.unibe.ch ETH Zurich Ralph Winkler mail@ralph-winkler.de University of Bern
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article On Adding-Up as a Validity Criterion for Stated-Preference Studies Abstract The adding-up test, which requires that the value of a bundle of goods or services be equal to the sum of the values of its component parts, has been proposed as a validity criterion for stated-preference studies. Though rooted in accepted theory, this proposal raises practical issues that need to be resolved before it is ready for implementation. It requires assumptions about preferences beyond those required for other validity tests such as the scope test. Surveys to implement adding up also increase respondent burden and may compromise consequentiality. These and other issues are reviewed and research strategies to address them are considered. Adding up, Stated preferences, Validity, Income elasticity, Price partitioning 3 2021 80 11 4 Environmental and Resource Economics 587 601 http://link.springer.com/10.1007/s10640-021-00599-1 text/html Abstract Richard C. Bishop rcbishop@wisc.edu University of Wisconsin-Madison Kevin J. Boyle kjboyle@vt.edu Virginia Tech
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article Negative Traffic Externalities and Infant Health: The Role of Income Heterogeneity and Residential Sorting Abstract Road traffic is associated with a variety of negative externalities such as air pollution and environmental noise, with significant short- and long-run health impacts on infants. This paper empirically quantifies the effects of traffic negative externalities on infant health, focusing especially on how they differ across income groups. We assemble a rich micro-dataset of infant birth outcomes, parental demographics, and neighborhood characteristics to specify and estimate a health model and an equilibrium sorting model. Our results demonstrate that traffic negative externalities reduce birth weights by over two times greater in the lowest-income than in the highest-income families. In addition, the effect of change in income from the poorest to the richest group lifts average birth weights by 0.56% among exposed families, while the income change has no impact on unexposed families. We also find that policies affecting traffic pollution exposure lead to residential sorting. The self-selection of the sorting process causes the lowest-income families to allocate away from neighborhoods experiencing policy-driven environmental improvement, negating the positive benefits of environmental policy. The magnitude of the sorting effect, however, is relatively small. Birth weight, Income heterogeneity, Propensity score matching, Sorting model, Traffic externalities 3 2021 80 11 6 Environmental and Resource Economics 637 674 http://link.springer.com/10.1007/s10640-021-00601-w text/html Abstract Dede Long Dede.Long@csulb.edu CSULB-Dept of Economics David Lewis Oregon State University Christian Langpap Oregon State University
oai:RePEc:kap:enreec:v:82:y:2022:i:1:d:10.1007_s10640-022-00673-22022-04-29RePEc:kap:enreec
article Permit Markets with Political and Market Distortions Abstract This article investigates cap-and-trade markets in the presence of both political and market distortions. We create a model where dominant firms have the ability to rent seek for a share of pollution permits as well as influence the market equilibrium with their choice of permit exchange because of market power. We derive the equilibrium and show the interaction of these two distortions has consequences for the resulting marginal inefficiency—the extent to which a re-allocation of permits between firms can reduce equilibrium abatement costs. We find that if the regulator is not very responsive to rent seeking then marginal inefficiency reduces relative to the case without rent seeking. When the regulator is very responsive to rent seeking, if dominant rent-seeking firms are all permit buyers (sellers) then marginal inefficiency reduces (increases) relative to the case without rent seeking. Pollution market, Market power, Rent seeking 1 2022 82 5 7 Environmental and Resource Economics 227 255 D43 D72 Q58 http://link.springer.com/10.1007/s10640-022-00673-2 text/html Abstract Alex Dickson University of Strathclyde Ian A. MacKenzie i.mackenzie@uq.edu.au University of Queensland
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article The Resilience of FDI to Natural Disasters Through Industrial Linkages Abstract When do multinationals show resilience during natural disasters? To answer this, we develop a simple model in which foreign multinationals and local firms in the host country are interacted through input-output linkages. When natural disasters seriously hit local firms and thus increase the cost of sourcing local intermediate inputs, most multinationals may leave the host country. However, they are likely to stay if they are tightly linked with local suppliers and face low trade costs of importing foreign intermediates. We further provide a number of extensions of the basic model to incorporate, for example, multinationals with heterogeneous productivity and disaster reconstruction. Foreign direct investment (FDI), Multinational enterprises (MNEs), Input–output linkages, Supply chain disruptions, Multiple equilibria 1 2022 82 5 6 Environmental and Resource Economics 177 225 F12 F23 Q54 http://link.springer.com/10.1007/s10640-022-00666-1 text/html Abstract Hayato Kato hayato.kato@econ.osaka-u.ac.jp Osaka University Toshihiro Okubo okubo@econ.keio.ac.jp Keio University
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article Understanding the Heterogeneity in the Effect of Driving Restriction Policies on Air Quality: Evidence from Chinese Cities Abstract Many cities around the world have adopted driving restriction policies to reduce vehicle emissions. However, evidence on the effectiveness of these policies is mixed. I exploit detailed and comprehensive data on Chinese cities to conduct a large-scale study of the effectiveness of a variety of driving restriction policies in a variety of locations. I estimate the monitor-specific short-run treatment effects of each driving restriction policy using a regression discontinuity in time approach, and the average treatment effect using a panel fixed-effect approach. The regression discontinuity in time estimation results show strong heterogeneity. Among the eight measures of air quality used, CO, $$NO_2$$ N O 2 , PM2.5, PM10, and AQI respond most to driving restriction policies. The average reduction of CO and $$NO_2$$ N O 2 are consistent with back-of-the-envelope calculations for policies that effectively limit vehicle use. Using detailed information on the design of each policy, I show that policy details and pollution concentration are the major factors that affect the actual and estimated effects of driving restriction policies, and also a potential explanation for earlier studies that showed driving restriction policies had little effect. Driving restriction policy, Air pollution, Heterogeneous policy effects, Endogeneity, Transportation policy, Environmental regulation 1 2022 82 5 5 Environmental and Resource Economics 133 175 http://link.springer.com/10.1007/s10640-022-00665-2 text/html Abstract Wenbo Meng wenbo.meng@colorado.edu University of Colorado at Boulder
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article The Role of Search Frictions and Trading Ratios in Tradable Permit Markets Abstract Search frictions, defined as the costs of finding trading partners, are a common feature of most permit markets. In these markets prices are not publicly available, buyers and sellers need to find their trading partners, trades often take place bilaterally, and there is often no central market-clearing mechanism. In this paper, we study the search and trading decisions of participants in a permit market with search frictions. We build an analytical model of the trading decision in a market with search frictions and show that individuals set a reservation price and an optimal search effort. The model shows that in the presence of search frictions, those who intend to trade (buy or sell) greater quantities search more. This trading behavior is not expected in a market without search frictions. Furthermore, we show that trading ratios affect the probability of trades taking place. We test the predictions of the model using a unique dataset of trades from a groundwater market with trading ratios that was designed to reduce a spatially explicit externality. We find that search frictions are significant so that buyers or sellers who trade greater quantities search more. Furthermore, we show that while the trading ratio system provides incentives to participants to reduce the spatial externality, search frictions reduces the effectiveness of the market by affecting the pool of potential trading partners for participants in the market. Tradable permit markets, Search frictions, Transaction costs, Water markets, groundwater Q15, Q25, Q59 1 2022 82 5 4 Environmental and Resource Economics 101 132 http://link.springer.com/10.1007/s10640-022-00664-3 text/html Abstract Mani Rouhi Rad rrad@clemson.edu Clemson University Taro Mieno University of Nebraska Nicholas Brozović University of Nebraska University of Nebraska
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article Information, Consequentiality and Credibility in Stated Preference Surveys: A Choice Experiment on Climate Adaptation Abstract Information provided in valuation surveys has been shown to affect stated preferences, which in turn may matter for the validity and reliability of survey-based value estimates. Although information effects are widely documented in stated preference studies, the reasons underlying the effects are less established. We focus on information about the policy context of the valuation scenario and examine two pathways which may help explain how including such information in a survey affects stated preferences. We hypothesize and empirically analyze whether the information effects on stated preferences can emerge as a result of changed perceptions about (1) the survey consequentiality and (2) the credibility of the valuation scenario upon facing the additional information. Our results confirm that the frequently found information effects can be present in the context of urban green and climate adaptation. The role of the additional information appears to be negligible for consequentiality perceptions. In contrast, the additional information strengthens the perceived credibility, and this may partially explain the information effects on stated preferences. We conclude that stated preference research may benefit from an increased attention to perceived credibility of the valuation scenario. Environmental valuation, Information effects, Survey consequentiality, Scenario credibility, Urban ecosystem services, Hybrid choice model 1 2022 82 5 8 Environmental and Resource Economics 257 283 http://link.springer.com/10.1007/s10640-022-00675-0 text/html Abstract Malte Welling malte.welling@ioew.de Brandenburg University of Technology Institute for Ecological Economy Research Ewa Zawojska ewa.zawojska@uw.edu.pl University of Warsaw Julian Sagebiel julian.sagebiel@slu.se Swedish University of Agricultural Sciences
oai:RePEc:kap:enreec:v:68:y:2017:i:3:d:10.1007_s10640-016-0040-42021-08-14RePEc:kap:enreec
article Is the Income Elasticity of the Willingness to Pay for Pollution Control Constant? Abstract How willingness to pay for environmental quality changes as incomes rise is a central question in several areas of environmental economics. This paper explores both theoretically and empirically whether or not the willingness to pay (WTP) for pollution control varies with income. Our model indicates that the income elasticity of the marginal WTP for pollution reduction is only constant under very restrictive conditions. Our empirical analysis tests the null hypothesis that the elasticity of the WTP for pollution control with respect to income is constant, employing a multi-country contingent valuation study of eutrophication reduction in the Baltic Sea. Our findings reject this hypothesis, and estimate an income elasticity of the WTP for eutrophication control of 0.1–0.2 for low-income respondents and 0.6–0.7 for high-income respondents. Thus, our empirical results suggest that the elasticity is not constant but is always less than one. This has implications for how benefits transfer exercises, and for theoretical explanations of the environmental Kuznets curve. Baltic Sea, Benefits transfer, Environmental Kuznets curve, Eutrophication, Income elasticity of willingness to pay, Non-market valuation 3 2017 68 11 10 Environmental and Resource Economics 663 682 Q51 Q53 Q56 http://link.springer.com/10.1007/s10640-016-0040-4 text/html Abstract Edward B. Barbier University of Wyoming Mikołaj Czajkowski miq@wne.uw.edu.pl University of Warsaw Nick Hanley University of St. Andrews
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article Accounting Price of an Exhaustible Resource: Response and Extensions Abstract Wei (Environ Resour Econ 60:579–581, 2015) presents a novel derivation of the accounting price for an exhaustible resource in a non-optimal economy subject to an allocation mechanism. We show that Wei (2015) and Hamilton and Ruta (Environ Resour Econ 42:53–64, 2009) are in fact employing different and mutually exclusive allocation mechanisms for the economy, and this explains the differences between the respective accounting prices. Because accounting prices must be defined subject to the allocation mechanism for the economy, the prices derived in the two papers are equally valid within their respective allocation domains. Further analysis shows that if there is declining marginal product of factors, a ‘Hartwick investment rule’ for the model economy (set investment just equal to depletion, valued at the accounting price) will lead to declining consumption for the Wei (2015) accounting price, and increasing consumption for the Hamilton and Ruta (2009) accounting price. This result is extended to consider the accounting standards recommended in the UN SEEA (System of environmental-economic accounting 2012: central framework. United Nations, European Commission, Food and Agriculture Organization of the United Nations, International Monetary Fund, Organisation for Economic Co-operation and Development, World Bank, 2012), as well as accounting for environmental externalities from resource use. Exhaustible resource, Accounting price, Resource depletion, Hartwick rule, Environmental externality 3 2017 68 11 4 Environmental and Resource Economics 527 536 Q01 Q32 Q53 Q56 http://link.springer.com/10.1007/s10640-016-0030-6 text/html Abstract Kirk Hamilton k.e.hamilton@verizon.net London School of Economics and Political Science Giovanni Ruta The World Bank
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article An EU Recycling Target: What Does the Dutch Evidence Tell Us? Abstract The European Union (EU) advocates a household waste recycling rate of more than 65 %. Although the Netherlands has already invested heavily in recycling policies, this is still a big challenge as nowadays this rate is approximately 50 % on average and very few no municipalities have a rate above 65 %. Given this practice, it is possible to learn from the Dutch experience which policies are effective in increasing recycling rates. Based on a large panel data set for the Netherlands, we show that unit-based pricing, avoiding a duo-bin for unsorted and compostable waste, and reducing the frequency of collecting unsorted and compostable waste at the curbside are effective in raising the recycling rate. However, only a bag-based pricing system has a substantial effect, but this policy can have some adverse effects. Other unit-based pricing systems have effects of less than 10 % points. In nearly all cases, changing the frequency of collection of recyclables has no or very small effects. Moreover, the complementarity between unit-based pricing and curbside service is low. Overall, it seems very difficult to reach the EU goal of 65 % with the policies applied. Recycling, Waste policy, EU-target, Local government, Netherlands 3 2017 68 11 3 Environmental and Resource Economics 501 526 Q18 Q38 R11 R15 http://link.springer.com/10.1007/s10640-016-0027-1 text/html Abstract Elbert Dijkgraaf dijkgraaf@ese.eur.nl Erasmus University Rotterdam Raymond Gradus VU University Amsterdam
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article Pollution Offshoring and Emission Reductions in EU and US Manufacturing Abstract Between 1995 and 2008, the European Union and the United States raised environmental standards and concurrently experienced important reductions in emissions from manufacturing despite a rise in output. Levinson (Am Econ Rev 99(5):2177–2192, 2009) finds that the offshoring of polluting industries to countries with lower environmental standards played only small role in the cleanup of US manufacturing, which was largely due to improvements in production technique. But there is no evidence of whether US patterns hold in other developed economies. I provide the first analysis of the pollution intensity of EU production and imports to examine which forces drove the EU cleanup. I find that concerns about the effect of pollution offshoring were unfounded in the European Union, not because the effect was small like in the United States, but because the patterns of specialization of EU production and imports were exactly opposite to what pollution offshoring would predict. Starting in the early 2000s, EU manufacturing increasingly produced more pollution-intensive goods while imports became progressively less pollution-intensive, especially from low-income countries. There are two notable exceptions: primary aluminum and electrometallurgical products, except steel, which do provide evidence of offshoring from the EU to lower income countries. The “brown” specialization of EU production is difficult to explain, but about a quarter can be matched by increased demand for EU exports of polluting goods. However, similar to the US cleanup, changes in production and imports were overwhelmed by improvements in production technique, which were the main drivers of the cleanup of manufacturing. Trade and environment, Environmental account and accounting, Technological innovation, Input–output table 3 2017 68 11 8 Environmental and Resource Economics 621 641 D57 F18 Q55 Q56 http://link.springer.com/10.1007/s10640-016-0035-1 text/html Abstract Claire Brunel brunel@american.edu American University
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article Optimal Management of Environmental Externalities with Time Lags and Uncertainty Abstract Many environmental externalities occur with time lags that can range from a few days to several centuries in length, and many of these externalities are also subject to uncertainty. In this paper, we examine the key features of an optimal policy to manage environmental externalities that are both lagged and stochastic. We develop a two-period, two-polluter model and obtain closed-form solutions for optimal emissions levels under different combinations of damage functions and stochastic processes. These solutions show that it is not obvious whether greater control should be exerted on polluters that generate externalities with longer lags or on polluters that generate externalities with shorter lags. We find that the optimal ranking of polluters with respect to the length of the time lag associated with their externality will depend on (a) the discount rate, (b) conditional expectations of future states of the polluted resource, (c) persistence of the pollutant, and (d) initial conditions. Environmental externalities, Time lags, Uncertainty, Persistence 3 2017 68 11 2 Environmental and Resource Economics 473 499 H23 Q5 D9 Q2 http://link.springer.com/10.1007/s10640-016-0026-2 text/html Abstract Yusuke Kuwayama kuwayama@rff.org Resources for the Future Nicholas Brozović University of Nebraska-Lincoln
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article Choice Consistency and Preference Stability in Test-Retests of Discrete Choice Experiment and Open-Ended Willingness to Pay Elicitation Formats Abstract This study tests the temporal stability of preferences, choices and willingness to pay (WTP) values using both discrete choice experiment (DCE) and open-ended (OE) WTP elicitation formats. The same sample is surveyed three times over the course of two years using each time the same choice sets. Choice consistency is positively correlated with choice certainty and choice complexity. The impact of choice complexity fades away in time, most likely as a result of learning and preference refinement. Although the OE WTP values remain stable over a time period of 2 years as in previous stated preference studies, DCE based WTP measures differ significantly, suggesting their use in benefits transfer may be limited. Preference stability, Choice consistency, Discrete choice experiment, Test-retest, Open-ended WTP 3 2017 68 11 13 Environmental and Resource Economics 729 751 http://link.springer.com/10.1007/s10640-016-0045-z text/html Abstract Roy Brouwer rbrouwer@uwaterloo.ca University of Waterloo Swiss Federal Institute of Aquatic Science and Technology (Eawag) Ivana Logar Swiss Federal Institute of Aquatic Science and Technology (Eawag) Oleg Sheremet University of St Andrews
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article Futures Contracts in Water Leasing: An Experimental Analysis Using Basin Characteristics of the Rio Grande, NM Abstract Providing for increased water demands during periods of persistent drought and climatic variability may require water managers, users and planners to think differently about how water resources are allocated. A water marketing institution that allows water rights holders to reallocate water on a temporary basis could overcome these challenges with minimal conflict. In this paper, a water marketing institution that allows for the temporary reallocation of water rights in a spot and futures market is investigated. The results provide insight into three key questions: (1) how does trading impact the physical system, (2) does the value of water differ by trading agents, (3) how is economic welfare redistributed as a result of trading? Results of experimental treatments display minor impacts to the physical system, that prices differ across the different type of trading agents and the addition of a futures market has the ability to decrease market prices while increasing economic welfare as a futures market allows users to hedge against future water uncertainty. Water leasing, Futures contracts, Experimental economics 3 2017 68 11 6 Environmental and Resource Economics 569 594 http://link.springer.com/10.1007/s10640-016-0032-4 text/html Abstract Craig D. Broadbent broadbentcr@byui.edu Brigham Young University-Idaho David S. Brookshire University of New Mexico Don Coursey University of Chicago Vince Tidwell Earth Systems Department
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article Why Finance Ministers Favor Carbon Taxes, Even If They Do Not Take Climate Change into Account Abstract Fiscal considerations may shift governmental priorities away from environmental concerns: finance ministers face strong demand for public expenditures such as infrastructure investments but they are constrained by international tax competition. We develop a multi-region model of tax competition and resource extraction to assess the fiscal incentive of imposing a tax on carbon rather than on capital. We explicitly model international capital and resource markets, as well as intertemporal capital accumulation and resource extraction. While fossil resources give rise to scarcity rents, capital does not. With carbon taxes, the rents can be captured and invested in infrastructure, which leads to higher welfare than under capital taxation. This result holds even without modeling environmental damages. It is robust under a variation of the behavioral assumptions of resource importers to coordinate their actions, and a resource exporter’s ability to counteract carbon policies. Further, no green paradox occurs—instead, the carbon tax constitutes a viable green policy, since it postpones extraction and reduces cumulative emissions. Carbon pricing, Green paradox, Infrastructure, Optimal taxation, Strategic instrument choice, Supply-side dynamics, Tax competition 3 2017 68 11 1 Environmental and Resource Economics 445 472 F21 H21 H30 H73 Q38 http://link.springer.com/10.1007/s10640-015-9982-1 text/html Abstract Max Franks franks@pik-potsdam.de Potsdam Institute for Climate Impact Research Berlin Institute of Technology Ottmar Edenhofer ottmar.edenhofer@pik-potsdam.de Potsdam Institute for Climate Impact Research Berlin Institute of Technology Mercator Research Institute on Global Commons and Climate Change Kai Lessmann lessmann@pik-potsdam.de Potsdam Institute for Climate Impact Research
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article Optimal Pollution Standards and Non-compliance in a Dynamic Framework Abstract In this paper we present a Stackelberg differential game to study the dynamic interaction between a polluting firm and a regulator who sets pollution limits overtime. At each time, the firm settles emissions taking into account the fine for non-compliance with the pollution limit, and balances current costs of investments in a capital stock which allows for future emission reductions. We derive two main results. First, we show that the optimal pollution limit decreases as the capital stock increases, while both emissions and the level of non-compliance decrease. Second, we find that offering fine discounts in exchange for firm’s capital investment is socially desirable. We numerically obtain the optimal value of such discount, which crucially depends on the severity of the fine. In the limiting scenario with a very large severity of the fine, the optimal discount implies that no penalties are levied, since the firm shows adequate adaptation progress through capital investment. Dynamic regulation, Stackelberg differential games, Non-compliance, Fines, Pollution standards 3 2017 68 11 5 Environmental and Resource Economics 537 567 C61 C73 K32 K42 L51 Q28 http://link.springer.com/10.1007/s10640-016-0031-5 text/html Abstract Carmen Arguedas carmen.arguedas@uam.es Universidad Autónoma de Madrid Francisco Cabo Universidad de Valladolid Guiomar Martín-Herrán Universidad de Valladolid
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article Spatial Heterogeneity of Willingness to Pay for Forest Management Abstract The paper investigates the spatial heterogeneity of public’s preferences for the implementation of a new country-wide forest management and protection program in Poland. Spatial econometric methods and high resolution geographical information system data related to forest characteristics are used to explain the variation in individual-specific willingness to pay (WTP) values, derived from a discrete choice experiment study. We find that respondents’ WTP is higher the closer they live to their nearest forest, and the scarcer forests are in the area where they live. Interestingly, the higher the ecological value of forests in respondents’ area, the more people prefer extending areas of national forest protection. We also investigate spatial patterns in individual-specific WTP scores and in latent class membership probabilities, finding that preferences are indeed spatially clustered. We argue that this clustering should be taken into account in forest management and policy-making. Discrete choice experiment, Contingent valuation, Willingness to pay, Spatial heterogeneity of preferences, Forest management, Passive protection, Litter, Tourist infrastructure, Mixed logit, Kriging, Spatial-lag 3 2017 68 11 12 Environmental and Resource Economics 705 727 Q23 Q28 I38 Q51 Q57 Q58 http://link.springer.com/10.1007/s10640-016-0044-0 text/html Abstract Mikołaj Czajkowski miq@wne.uw.edu.pl University of Warsaw Wiktor Budziński University of Warsaw Danny Campbell University of Stirling Marek Giergiczny University of Warsaw Nick Hanley University of St Andrews
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article Measuring the Effect of Economic Growth on Countries’ Environmental Efficiency: A Conditional Directional Distance Function Approach Abstract Using a recently developed probabilistic approach of a conditional directional distance function, we measure the effect of economic growth on countries’ environmental efficiency in carbon dioxide emissions for a sample of 99 countries over the period of 1980–2010. Our approach directly accounts for the exogenous factors influencing countries’ environmental production; therefore, we do not impose the separability condition on the estimated environmental efficiencies. When examining the entire sample as well as the sample of developed countries, our results reveal an inverted U-shaped relationship between countries’ GDP per capita and environmental efficiency. However, when examining the relationship for the sample of developing countries, the results reveal an N-shaped form. Moreover, our results show that countries ratifying the Kyoto Protocol tend to have higher efficiency scores, implying that their mitigation activity is less costly. Environmental efficiency, Carbon dioxide emissions, Conditional directional distance function, Kuznets curve, Nonparametric analysis 3 2017 68 11 14 Environmental and Resource Economics 753 775 C61 O44 Q53 http://link.springer.com/10.1007/s10640-016-0046-y text/html Abstract George E. Halkos halkos@econ.uth.gr University of Thessaly Shunsuke Managi Kyushu University QUT Business School
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article Energy Transition Under Irreversibility: A Two-Sector Approach Abstract This paper analyses the optimal energy transition of a two-sector economy (energy and final goods) under irreversible environmental catastrophe. First, it proposes a general appraisal of optimal switching problems related to energy transition showing: (1) the possibility of a catastrophe due to accumulation of pollution; and (2) technological regimes with the adoption of renewable energy. Second, it numerically shows that for given baseline parameter values, the most profitable energy transition path may correspond to the one in which the economy starts using both resources, crosses the pollution threshold by losing a part of its capital, and never adopts only clean energy. Third, it extends the model to allow for additional investment in energy saving technologies. We then find that this additional investment favours full transition to the sole use of renewable energy. It is then profitable to take advantage of these synergies by jointly promoting deployment of clean energy and providing incentives for investment in energy saving technologies. Energy, Irreversibility, Pollution, Switch 3 2017 68 11 16 Environmental and Resource Economics 797 820 Q30 Q53 C61 http://link.springer.com/10.1007/s10640-016-0053-z text/html Abstract Prudence Dato prudence.dato@univ-savoie.fr IREGE, University of Savoie
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article As Time Goes By: Examination of Temporal Stability Across Stated Preference Question Formats Abstract We evaluate the temporal stability of willingness-to-pay values obtained from two identical stated-preference surveys undertaken in 2004 and 2012. The surveys employ two discrete-choice elicitation formats to value reductions in two health endpoints related to tap water consumption, and are explicitly designed to make direct comparisons between formats. We find no significant differences in real willingness-to-pay between the two surveys for either format—a result that is robust to the structure of heterogeneity used to model respondent preferences. Findings lend support, at least within the context of tap water quality, to the temporal transfer of nonmarket benefits over extended time periods. Discrete choice experiment, Temporal stability, Water values, Willingness-to-pay 3 2017 68 11 9 Environmental and Resource Economics 643 662 Q25 Q51 http://link.springer.com/10.1007/s10640-016-0039-x text/html Abstract J. Price jamesprice672@gmail.com Brock University D. Dupont diane.dupont@brocku.ca Brock University W. Adamowicz vic.adamowicz@ualberta.ca University of Alberta
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article The Cost of Pollution on Longevity, Welfare and Economic Stability Abstract This paper presents an overlapping generations model where pollution, private and public health expenditures are all determinants of longevity. Public expenditures, financed through labour taxation, provide both public health and abatement. We study the role of these three components of longevity on welfare and economic stability. At the steady state, we show that an appropriate fiscal policy may enhance welfare. However, when pollution is heavily harmful for longevity, the economy might experience aggregate instability or endogenous cycles. Nonetheless, a fiscal policy, which raises the share of public spending devoted to health, may display stabilizing virtues and rule out cycles. This allows us to recommend the design of the public policy that may comply with the dynamic and welfare objectives. Longevity, Pollution, Welfare, Instability 3 2017 68 11 11 Environmental and Resource Economics 683 704 J10 O40 Q56 C62 http://link.springer.com/10.1007/s10640-016-0041-3 text/html Abstract Natacha Raffin nraffin@u-paris10.fr University Paris Ouest Nanterre la Défense Thomas Seegmuller thomas.seegmuller@univ-amu.fr CNRS & EHESS, Centre de la Vieille Charité
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article The Impact of Environmental Policy Stringency on Industrial R&D Conditional on Pollution Intensity and Relocation Costs Abstract Stringent environmental regulations may encourage industrial innovation, as technological advancements lower the cost of pollution abatement (Popp et al. in Handbook of the economics of innovation, vol II. Academic Press, Burlington, pp 873–938, 2010). The pollution-havens hypothesis, on the other hand, indicates that, rather than innovating, dirty industries may relocate to countries with less stringent environmental regulations (Copeland and Taylor in J Econ Lit 42(1):7–71, 2004). Thus, more stringent environmental regulations may increase or decrease innovative activities. This paper examines empirically the impact of environmental regulations on R&D intensities and R&D expenditures in 21 manufacturing industries in 28 OECD countries from 2000 to 2007. I consider pollution intensity and the relative ease of relocation (immobility) as industry characteristics that determine the optimal industry response to increased environmental policy stringency. I find that more pollution intensive industries innovate less as regulatory environments become more restrictive relative to less pollution intensive industries. At the same time, more immobile industries innovate more than more mobile industries as environmental regulations become more stringent, illustrating innovation as an alternative to relocation. Environmental policy, Induced innovation, Industry characteristics, Pollution-havens, R&D 3 2017 68 11 7 Environmental and Resource Economics 595 620 O32 O14 Q55 Q58 http://link.springer.com/10.1007/s10640-016-0034-2 text/html Abstract Sahar Milani smilani@stlawu.edu St. Lawrence University
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article Can Transverse Eco-compensation Mechanism Correct Resource Misallocation in Watershed Environmental Governance? A Cost-benefit Analysis of the Pilot Project of Xin’an River in China Abstract Correcting resource misallocation that creates productivity and welfare losses is the key to correcting transboundary basin pollution. China has proposed a transverse eco-compensation mechanism (TECM) based on the traditional Coase scheme to solve the pollution of transboundary watersheds. But whether it can correct the misallocation of resources that cause productivity and welfare losses has been ignored in existing literature. This paper first conducts a theoretical analysis of the TECM’s resource allocation effect and operation mechanism. And on this basis, we use the cost–benefit analysis (CBA) method to show how TECM produced actions in relevant upstream regions towards correcting excessive pollution, and how TECM provided economic incentives for these regions to undertake these actions. The CBA analysis results are consistent with the theoretical analysis. The TECM project will benefit the upstream region with a discount rate of 3%, and the present value of the net income is 96.4 million yuan. The conclusion still holds in the case of different discount rates. The above results show that the TECM can correct the resource misallocation that creates productivity and welfare losses in cross-basin environmental governance, and provide economic incentives for upstream areas to correct environmental resource misallocation (excessive pollution). Finally, the TECM model has important policy implications for solving the problem of cross-basin pollution in other similar countries. Transverse eco-compensation mechanism, Xin'an River, Resource misallocation, Cost–benefit analysis 4 2023 84 4 3 Environmental and Resource Economics 947 973 Q53 Q56 Q58 O13 http://link.springer.com/10.1007/s10640-022-00743-5 text/html Abstract Hong-Zhen Zhang 15614416549@163.com Hebei University Ling-Yun He lyhe@amss.ac.cn Jinan University ZhongXiang Zhang ZhangZX@tju.edu.cn Tianjin University China Academy of Energy, Environmental and Industrial Economics
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article The Achievement of Multiple Nationally Determined Contribution Goals and Regional Economic Development in China Abstract In this paper, we develop a multiregional dynamic computable general equilibrium model, in which the technical details of the power sector are enriched by endogenizing nonfossil energy technological change. We then examine the impact of China’s carbon peaking and energy transition goals in 2030 on regional economic development. The results show that the carbon pricing policy will have a negative impact on the economy and aggravate the regional economic imbalance but will be conducive to total energy control. The targeted power investment policy promotes economic development and alleviates the regional economic imbalance; further, clean power investment also provides incentives for developing nonfossil energy technologies. It seems to be natural to achieve the carbon peaking and carbon intensity goals in 2030, whereas it will be more challenging to realize the total energy control and clean energy development goals. Targeted power investment adjusting combined with flexible carbon pricing does well in reconciling the attainment of multiple policy goals and the balance of reginal economic development. Dynamic multiregional CGE model, Carbon pricing, Regional economic development, Climate policy goals, Clean energy transition 4 2023 84 4 9 Environmental and Resource Economics 1155 1177 http://link.springer.com/10.1007/s10640-022-00752-4 text/html Abstract Yongna Yuan juliayny@ucas.ac.cn University of Chinese Academy of Sciences Guiyu Li guiyli@mail.ucas.ac.cn University of Chinese Academy of Sciences Hongbo Duan hbduan@ucas.ac.cn University of Chinese Academy of Sciences
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article Marginal Damage of Methane Emissions: Ozone Impacts on Agriculture Abstract Methane directly contributes to air pollution, as an ozone precursor, and to climate change, generating physical and economic damages to different systems, namely agriculture, vegetation, energy, human health, or biodiversity. The methane-related damages to climate, measured as the Social Cost of Methane, and to human health have been analyzed by different studies and considered by government rulemaking in the last decades, but the ozone-related damages to crop revenues associated to methane emissions have not been incorporated to policy agenda. Using a combination of the Global Change Analysis Model and the TM5-FASST Scenario Screening Tool, we estimate that global marginal agricultural damages range from ~ 423 to 556 $2010/t-CH4, of which 98 $2010/t-CH4 occur in the USA, which is the most affected region due to its role as a major crop producer, followed by China, EU-15, and India. These damages would represent 39–59% of the climate damages and 28–64% of the human health damages associated with methane emissions by previous studies. The marginal damages to crop revenues calculated in this study complement the damages from methane to climate and human health, and provides valuable information to be considered in future cost-benefits analyses. Agriculture, Air pollution, Economic damages, Integrated assessment, Methane, Ozone 4 2023 84 4 7 Environmental and Resource Economics 1095 1126 http://link.springer.com/10.1007/s10640-022-00750-6 text/html Abstract Jon Sampedro jon.sampedro@bc3research.org Pacific Northwest National Laboratory Basque Centre For Climate Change (BC3) Stephanie Waldhoff Pacific Northwest National Laboratory Marcus Sarofim U.S. Environmental Protection Agency (USEPA, 6207A) Rita Dingenen Joint Research Centre (JRC)
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article Behavioural and Welfare Analysis of an Intermediary in Biodiversity Offset Markets Abstract This paper provides a behavioural and welfare analysis of an intermediary in biodiversity offset markets. These markets are characterised by high information requirements and transaction costs, threatening economic efficiency and even biodiversity outcomes. Specialised intermediaries facilitate trading by providing information and brokering services. By buying, holding and selling offset credits from storage, the intermediary can decrease both financial and ecological risks in the market. As a drawback, the intermediary may exploit market power upstream or downstream due to ecological features of the offset market. Intermediaries decrease the trading parties’ transaction costs by offering specialised information, reduce uncertainty, and decrease the costs of offsetting by increasing liquidity in the market and offering certain offset credits. When the intermediary has market power, selling and buying prices deviate from the competitive equilibrium. This welfare loss may be lower than the loss from transaction costs and trade ratios in decentralised trade, even in the case of the intermediary having both monopoly and monopsony power. The intermediary is the most useful when trade ratios are high and when the intermediary stores mature credits, which eliminates ecological uncertainty and thereby offers cost savings for developers, and may result in a higher level of biodiversity. Biodiversity offsetting, Ecological compensation, Habitat banking, Intermediary, Market power, Offset market 4 2023 84 4 8 Environmental and Resource Economics 1127 1154 Q57 D43 H41 http://link.springer.com/10.1007/s10640-022-00751-5 text/html Abstract Johanna Kangas johanna.a.kangas@helsinki.fi University of Helsinki Markku Ollikainen University of Helsinki
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article Adjusting and Calibrating Elicited Values Based on Follow-up Certainty Questions: A Meta-analysis Abstract Researchers have proposed many methods to reduce hypothetical bias (HB) in stated preference studies. One of the earliest and most popular is Certainty follow-up, in which the respondent states how sure they are of their response to the valuation question they just responded to. Certainty follow-up enables the use of several cutoffs to calibrate for HB, whereas the efficacy of other popular HB mitigation methods, such as Cheap Talk, have no such flexibility. Even given a cutoff level, its ability to reduce HB may vary with characteristics of the Certainty follow-up and of the study. Using a meta-analysis, we find that Certainty follow-up is more effective than Cheap Talk at adjusting for potential HB and that value elicitation method, mode of data collection, as well as whether other HB mitigation methods are used in a study could affect Certainty follow-up efficacy. Using and recoding Certainty follow-up questions quantitatively or qualitatively can be equally effective when compared to unadjusted hypothetical values where potential HB may occur or to values elicited with real binding conditions in which the actual magnitude of the HB is known. There is strong evidence that HB can be completely calibrated for or even overcorrected, but we encourage more Certainty follow-up studies with binding elicitations to fully explore the potential of this method. Certainty follow-up, Hypothetical bias, Meta-analysis 4 2023 84 4 2 Environmental and Resource Economics 919 946 Q51 Q10 D90 http://link.springer.com/10.1007/s10640-022-00742-6 text/html Abstract Jerrod Penn jpenn@agcenter.lsu.edu Louisiana State University & LSU Agricultural Center Wuyang Hu hu.1851@osu.edu The Ohio State University
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article A Novel HydroEconomic - Econometric Approach for Integrated Transboundary Water Management Under Uncertainty Abstract The optimal management of scarce transboundary water resources among competitive users is expected to be challenged by the effects of climate change on water availability. The multiple economic and social implications, including conflicts between neighbouring countries, as well as competitive sectors within each country are difficult to estimate and predict, to inform policy-making. In this paper, this problem is approached as a stochastic multistage dynamic game: we develop and apply a novel framework for assessing and evaluating different international strategies regarding transboundary water resources use, under conditions of hydrological uncertainty. The Omo-Turkana transboundary basin in Africa is used as a case study application, since it increasingly faces the above challenges, including the international tension between Kenya and Ethiopia and each individual country’s multi-sectoral competition for water use. The mathematical framework combines a hydro-economic model (water balance, water costs and benefits), and an econometric model (production functions and water demand curves) which are tested under cooperative and non-cooperative conditions (Stackelberg “leader–follower” game). The results show the cross-country and cross-sectoral water use—economic trade-offs, the future water availability for every game case, the sector-specific production function estimations (including residential, agriculture, energy, mining, tourism sectors), with nonparametric treatment, allowing for technical inefficiency in production and autocorrelated Total Factor Productivity, providing thus a more realistic simulation. Cooperation between the two countries is the most beneficial case for future water availability and economic growth. The study presents a replicable, sophisticated modelling framework, for holistic transboundary water management. Cooperation games, Demand curve, Endogenous adaptation, Production functions technical inefficiency, Stochasticity, Transboundary water management 4 2023 84 4 4 Environmental and Resource Economics 975 1030 http://link.springer.com/10.1007/s10640-022-00744-4 text/html Abstract N. Englezos englezos@unipi.gr University of Piraeus X. Kartala xkartala@aueb.gr Athens University of Economics and Business P. Koundouri pkoundouri@aueb.gr Athens University of Economics and Business Technical University of Denmark M. Tsionas m.tsionas@lancaster.ac.uk Montpellier Business School Lancaster University A. Alamanos angalamanos@gmail.com Athens University of Economics and Business
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article Concerns for Long-Run Risks and Natural Resource Policy Abstract The legislature in many countries requires that short-run risk and long-run risk be considered in making natural resource policy. In this paper, we explore this issue by analyzing how natural resource conservation policy should optimally respond to long-run risks in a resource management framework where the social evaluator has (Duffie and Epstein in Econometrica 60:353–394, 1992; Schroder and Skiadas in J Econ Theory 89:68–126, 1999) continuous-time stochastic recursive preferences. The response of resource conservation policy to long-run risks is reflected into a matrix whose coefficients measure precaution toward short-run risk, long-run risk and covariance risk. Attitudes toward the temporal resolution of risk underly concerns for long-run risks as well as the response of resource conservation policy to future uncertainty. We formally compare the responses of natural resource policy to long-run risks under recursive utility and under time-additive expected utility. A stronger preference for early resolution of uncertainty can prompt a more conservative resource policy as a response to long-run risks. In the very particular case where the social evaluator preferences are represented by a standard time-additive expected utility, long-run risks are not factored in resource conservation policy decisions. Our work also contributes to the so-called Hotelling Puzzle by formally showing that the fundamental Hotelling’s homogeneous resource depletion problem (one without extraction costs, without new discoveries, and without technical progress) can lead to a decreasing shadow price when attitudes toward the temporal resolution of risk are accounted for. Natural resource policy, Long-run risk, Short-run risk, Continuous-time stochastic recursive utility, Temporal resolution of uncertainty, Hotelling Puzzle 4 2023 84 4 6 Environmental and Resource Economics 1051 1093 Q2 D81 O44 http://link.springer.com/10.1007/s10640-022-00748-0 text/html Abstract Johnson Kakeu jkakeu@upei.ca University of Prince Edward Island
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article Diverging Beliefs on Climate Change and Climate Policy: The Role of Political Orientation Abstract Using longitudinal data from two household surveys in 2017 and 2019, we analyze attitudes toward climate change and climate policy in Germany. We find that nearly 20% of respondents state that they do not believe in climate change, and more than 30% are doubtful that climate change is mainly caused by human action. Moreover, we detect that political orientation is strongly correlated with these attitudes, as respondents inclined to Germany’s right-wing populist party AfD are substantially more climate-skeptical and object to climate policies more frequently. Even though our results show that climate change skepticism increased between 2017 and 2019, coinciding with the rise of the Fridays for Future movement, AfD voters did not move further away from the average respondent during this period. Moreover, fixed-effects estimations show that the climate attitudes of voters who switch to AfD during the study period hardly change, indicating that the orientation towards the AfD does not change climate attitudes. Instead, AfD might attract people who were already climate skeptical. Climate change mitigation, Support, Environmental policy, Attitudes, Survey data 4 2023 84 4 5 Environmental and Resource Economics 1031 1049 H41 Q50 Q58 http://link.springer.com/10.1007/s10640-022-00747-1 text/html Abstract Leonard Knollenborg leonard.knollenborg@rwi-essen.de RWI – Leibniz Institute for Economic Research Stephan Sommer stephan.sommer@hs-bochum.de Bochum University of Applied Sciences
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article Sunspots That Matter: The Effect of Weather on Solar Technology Adoption Abstract This paper tests for the presence of behavioral biases in household decisions to adopt solar photovoltaic installations using exogenous variation in weather. I find that residential technology uptake responds to exceptional weather, defined as deviations from the long-term mean, in line with the average time gap between decision-making and completion of the installation. In particular, a one standard deviation increase in sunshine hours during the purchase period leads to an approximate increase of 4.7% in weekly solar PV installations. This effect persists in aggregate data. I consider a range of potential mechanisms and find suggestive evidence for projection bias and salience as key drivers of my results. Renewable energy, Solar photovoltaics, Projection bias, Salience, Energy policy, Technology diffusion 4 2023 84 4 10 Environmental and Resource Economics 1179 1219 D12 D91 Q42 http://link.springer.com/10.1007/s10640-022-00753-3 text/html Abstract Stefan Lamp slamp@eco.uc3m.es Universidad Carlos III Madrid
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article The environmental effects of the “twin” green and digital transition in European regions Abstract This study explores the nexus between digital and green transformations—the so-called “twin” transition—in European regions in an effort to identify the impact of digital and environmental technologies on the greenhouse gas (GHG) emissions originating from industrial production. We conduct an empirical analysis based on an original dataset that combines information on environmental and digital patent applications with information on GHG emissions from highly polluting plants for the period 2007–2016 at the metropolitan region level in the European Union and the UK. Results show that the local development of environmental technologies reduces GHG emissions, while the local development of digital technologies increases them, albeit in the latter case different technologies seem to have different impacts on the environment, with big data and computing infrastructures being the most detrimental. We also find differential impacts across regions depending on local endowment levels of the respective technologies: the beneficial effect of environmental technologies is stronger in regions with large digital technology endowments and, conversely, the detrimental effect of digital technologies is weaker in regions with large green technology endowments. Policy actions promoting the “twin” transition should take this evidence into account, in light of the potential downside of the digital transformation when not combined with the green transformation. Technological innovation, GHG emissions, Twin transition, Digital ecosystem 4 2023 84 4 1 Environmental and Resource Economics 877 918 O30 Q53 Q55 R11 http://link.springer.com/10.1007/s10640-022-00741-7 text/html Abstract Stefano Bianchini s.bianchini@unistra.fr Université de Strasbourg Giacomo Damioli gdamioli@uni-bremen.de European Commission University of Bremen University of Modena and Reggio Emilia Claudia Ghisetti claudia.ghisetti@unimib.it University of Milan-Bicocca
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article Air Pollution and Housing Values in Korea: A Hedonic Analysis with Long-range Transboundary Pollution as an Instrument Abstract We estimate the degree and scope of PM2.5-induced negative price shock in Korea’s local housing markets, taking a two-stage hedonic approach. For the analysis, Korea’s local PM2.5 levels are treated as endogenous and are instrumented with regional air pollutants from China. We find that a unit µg/m3 PM2.5 level increase in a Korean city is associated with a 3.7% decline in local residential property value. Long-range transboundary pollution has significant effects on Korea’s local PM2.5 levels with an elasticity of 0.05. These results enrich the sparse hedonic literature on local air-quality valuation in connection to long-range transboundary pollution in East Asia. The advanced methodological features presented in our two-staged identification strategy with a novel instrument is another contribution of this paper. Transboundary air pollution, Particulate matter, Hedonic price model, Two-stage least squares, Korea, China 2 2022 82 6 4 Environmental and Resource Economics 383 407 B41 C36 N55 Q53 R10 R31 http://link.springer.com/10.1007/s10640-022-00682-1 text/html Abstract Kyung-Min Nam kmnam@hku.hk The University of Hong Kong Yifu Ou The University of Hong Kong Euijune Kim Seoul National University Siqi Zheng Massachusetts Institute of Technology
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article Pollutant Trading with Transport Time Lags Abstract Nutrient pollution represents one of the costliest and most challenging threats to water quality in the United States and is a major problem elsewhere in the world. Water quality trading is drawing significant interest from policy makers as a mechanism to manage nutrient loads cost-effectively. Overlooked in nutrient markets developed to date and in standard guidance for market design are the fundamental dynamics of nutrient pollution delivery processes. This paper develops rules to efficiently manage pollution trading between sources that differ in terms of how fast their pollution arrives at degraded waters. We develop a system of optimal time-varying discharge permits and lag trade ratios, as well as a simpler, second-best system of time-invariant permits and trade ratios that achieve optimal pollution loads in the long run steady state. Our second-best system accounts for lags in a way that is both pragmatic and grounded in economic theory. Results from a numerical simulation indicate that the total costs of the second-best system are within 0.2% of the first-best optimum, suggesting that the efficiency loss associated with the second-best design may therefore be of little practical concern. Water quality trading, Lag times, Market design, Trade ratios, Nutrient pollution 2 2022 82 6 3 Environmental and Resource Economics 355 382 D47 D52 D61 D62 Q25 Q53 http://link.springer.com/10.1007/s10640-022-00681-2 text/html Abstract Aaron M. Cook amc521@psu.edu Penn State University James S. Shortle Penn State University
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article Overcapacity in Gulf of Mexico reef fish IFQ fisheries: 12 years after the adoption of IFQs Abstract We study the impacts of individual fishing quota programs on overcapacity and the technical efficiency of the Gulf of Mexico red snapper and grouper-tilefish fisheries. We deploy generalized panel data stochastic frontier methods, which allow us to decompose time invariant heterogeneity into both vessel specific heterogeneity and persistent inefficiency. This type of decomposition has recently seen interest in a variety of applied production settings but marks the first use in fishery studies. Our main findings show that roughly 20% of red snapper fleet size could have harvested the entire red snapper quota and that the time-varying technical efficiency of the red snapper fleet grew by 6% post-IFQ. We also find that 57% of the Gulf reef fish IFQ fishery (red snapper combined with grouper-tilefish), had it operated at full efficiency, could have harvested the quota in the early stages of the IFQ program (2011–2016), and that the time-varying technical efficiency of the fleet rose by 5% post-IFQ. “The views and opinions provided or implied in this manuscript are those of the authors and do not necessarily reflect the positions or policies of NOAA”. “The views and opinions provided or implied in this manuscript are those of the authors and do not necessarily reflect the positions or policies of NOAA”. 2 2022 82 6 8 Environmental and Resource Economics 483 506 http://link.springer.com/10.1007/s10640-022-00687-w text/html Abstract Juan Agar NOAA William C. Horrace whorrace@syr.edu Syracuse University Christopher F. Parmeter cparmeter@bus.miami.edu University of Miami
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article When it Rains, it Pours: Estimating the Spatial Spillover Effect of Rainfall Abstract A large fraction of the world’s poor rely on rain-fed agriculture, which makes them vulnerable to changes in rainfall patterns. In this paper, we examine whether spatial correlation in rainfall results in these households also being vulnerable to an adverse spatial-spillover effect. In particular, we use household-level panel data from India along with high-resolution meteorological data to show how rural household consumption varies with own-region rainfall as well as rainfall in neighboring areas. We find that while greater own rainfall has a positive effect on rural household consumption, greater rainfall in neighboring regions has an adverse spatial-spillover effect. Our results suggest that when this spillover effect is taken into account, the positive impact of own-region rainfall on household consumption falls by 38 percent. Rainfall, Rural households, Climate 2 2022 82 6 2 Environmental and Resource Economics 327 354 Q12 O13 Q54 http://link.springer.com/10.1007/s10640-022-00680-3 text/html Abstract Farzana Hossain farzana.hossain@monash.edu farzanah@student.unimelb.edu.au Monash University Reshad N. Ahsan rahsan@unimelb.edu.au University of Melbourne
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article Climate Change and the Cost-Effective Governance Mode for Biodiversity Conservation Abstract Climate change poses a key challenge for biodiversity conservation. Conservation agencies, in particular, have to decide where to carry out conservation measures in a landscape to enable species to move with climate change. Moreover, they can choose two main governance modes: (1) buy land to implement conservation measures themselves on that land, or (2) compensate landowners for voluntarily carrying out conservation measures on their land. We develop a dynamic, conceptual ecological-economic model to investigate the influence of changes in climatic parameters on the cost-effectiveness of these governance modes and specific patch selection strategies (price prioritisation, species abundance prioritisation, climate suitability prioritisation, climate change direction prioritisation). We identify five effects that explain the cost-effectiveness performance of the combinations of governance mode and patch selection strategy and find that their cost-effectiveness depends on climate parameters and is thus case-specific. Agri-environment scheme, Biodiversity, Climate-ecological-economic modelling, Conservation payments, Cost-effectiveness, Land acquisition, Make-or-buy decision, Payments for environmental services, Modes of governance 2 2022 82 6 5 Environmental and Resource Economics 409 436 http://link.springer.com/10.1007/s10640-022-00684-z text/html Abstract Oliver Schöttker oliver.schoettker@b-tu.de Brandenburg University of Technology Cottbus-Senftenberg Frank Wätzold waetzold@b-tu.de Brandenburg University of Technology Cottbus-Senftenberg
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article On the Cost-Effective Temporal Allocation of Credits in Conservation Offsets when Habitat Restoration Takes Time and is Uncertain Abstract Tradable permits, or offsetting schemes, are increasingly used as an instrument for the conservation of biodiversity on private lands. Since the restoration of degraded land often involves uncertainties and time lags, conservation biologists have strongly recommended that credits in conservation offset schemes should be awarded only with the completion of the restoration process. Otherwise, the instrument is claimed to fail on the objective of no net loss in species habitat and biodiversity. What is ignored in these arguments, however, is that such a scheme design may incur higher economic costs than a design in which credits are already awarded at the initiation of the restoration process. In the present paper a generic agent-based ecological-economic simulation model is developed to explore different pros and cons of the two scheme designs, in particular their cost-effectiveness. The model considers spatially heterogeneous and dynamic conservation costs, risk aversion and time preferences in the landowners, as well as uncertainty in the duration and the success of the restoration process. It turns out that, especially under fast change of the conservation costs, awarding credits at the initiation of restoration can be more cost-effective than awarding them with completion of restoration. Agent-based model, Conservation offsets, Ecological-economic model, Habitat restoration, Uncertainty 2 2022 82 6 6 Environmental and Resource Economics 437 459 http://link.springer.com/10.1007/s10640-022-00685-y text/html Abstract Martin Drechsler martin.drechsler@ufz.de Helmholtz Centre for Environmental Research – UFZ Brandenburg University of Technology Cottbus-Senftenberg
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article How Do Carbon Taxes Affect Emissions? Plant-Level Evidence from Manufacturing Abstract This paper investigates how carbon taxes affect emissions by examining British Columbia’s revenue-neutral carbon tax in the manufacturing sector. We theoretically demonstrate that carbon taxes can achieve emission reductions while increasing production. Recycling carbon tax revenues to lower corporate income tax rates encourages investments, allowing plants to emit less per unit of output. Using detailed confidential plant-level data, we evaluate this theoretical prediction by exploiting the treatment intensity through plants’ emission intensity. We find that the carbon tax lowers emissions by 4 percent. Furthermore, we find that the policy had a positive output effect and negative emission intensity effect, suggesting that the carbon tax encouraged plants to produce more with less energy. We provide initial evidence showing how a revenue-neutral carbon tax may achieve emission reductions while stimulating the economy. Carbon tax, Energy, Revenue-recycling, Manufacturing emission 2 2022 82 6 1 Environmental and Resource Economics 285 325 H23 Q5 L6 http://link.springer.com/10.1007/s10640-022-00678-x text/html Abstract Younes Ahmadi yahmadi@ucalgary.ca University of Calgary Akio Yamazaki a-yamazaki@grips.ac.jp University of Calgary National Graduate Institute for Policy Studies (GRIPS) Philippe Kabore pkabo048@uottawa.ca University of Ottawa
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article On Simple Rules for the Social Cost of Carbon Abstract The objective of this paper is to assess the use of simple rules for the social cost of carbon. It is shown that several interrelated objections may apply. The main issues are the following. First, the underlying theoretical models typically assume that the economy finds itself on a balanced growth path, implying that addressing the issue of designing policies for the short run, which play a role in the actual policy debate, are neglected. Second, for some cases the assumptions made regarding the marginal damages of high temperature or of arge atmospheric $$CO_{2}$$ C O 2 stocks are shown to be incompatible with other assumptions made. Third, typically the rules follow from an optimal growth model and associate the social cost for a particular year with GDP for that year, but it is not always acknowledged that it should be optimal rather than actual GDP for that year. I also go into the performance of simple rules as compared to first-best. Social cost of carbon, Integrated assessment models, Long run growth 2 2022 82 6 7 Environmental and Resource Economics 461 481 http://link.springer.com/10.1007/s10640-022-00686-x text/html Abstract Cees Withagen cwithagen@feweb.vu.nl Vrije Universiteit Amsterdam
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article On the Relationship Between GHGs and Global Temperature Anomalies: Multi-level Rolling Analysis and Copula Calibration Abstract The relationship between GHG emissions and global warming is studied through multi-level rolling analysis to assess whether or not there are increasing rates in global climate change as a result of higher levels of anthropogenic emissions, as we move forward in time. Furthermore, in order to assess whether we observe tail dependence, representing simultaneous occurrence of extreme events, we employ copula methods. Our main findings suggest a constant effect of emissions on temperature anomalies especially in the last decades. On the other hand we observe positive upper tail dependence in our copula analyses. This implies a comparably high probability of joint extreme large values (i.e., high temperatures and emission concentrations). As a guide to policy, it suggests to keep down extreme events in emissions to prevent possibilities of extreme warmings. GHGs, Global temperature anomalies, Rolling analysis, Copulas 1 2019 72 1 7 Environmental and Resource Economics 109 133 Q54 Q51 C53 C69 http://link.springer.com/10.1007/s10640-018-0259-3 text/html Abstract Elettra Agliardi elettra.agliardi@unibo.it University of Bologna Thomas Alexopoulos t.alexopoulos@uop.gr University of Peloponnese Christian Cech christian.cech@fh-vie.ac.at University of Applied Sciences BFI Vienna
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article Forest Fires Across Italian Regions and Implications for Climate Change: A Panel Data Analysis Abstract In this paper, we analyze the determinants of monthly variations in forest fire frequency and on the size of the area burnt for Italian regions between 2000 and 2011. We employ panel data techniques, which allow capturing the dynamics of fire danger due to changes in past climatic conditions, after accounting for regional fixed effects to control region-specific unobserved and time-invariant factors. Results highlight a significant heterogeneity of the effects of driving factors across the Italian peninsula and weather seasons. Climatic conditions also show lasting effects within the year. Using climate change projections for 2016–2035, we then obtain the projected forest fire frequency and total area burnt across the Italian peninsula for the same period. Climate change is expected to increase the number of forest fires across the whole peninsula, which is more evident for the central part of Italy. Even though most of annual increases in fire events relate to the summer period, intensifications in frequency during autumn become more evident in the southern Italy. We extend finally our analysis to investigate the contribution of socio-economic factors to fire regime and the role of education and the containment of fraudulent activity is also highlighted. Forest fires, Forestry, Climate change, Panel-data estimation 1 2019 72 1 10 Environmental and Resource Economics 207 246 C33 Q23 Q54 http://link.springer.com/10.1007/s10640-018-0279-z text/html Abstract Melania Michetti melania.michetti@cmcc.it Centro Euro-mediterraneo sui Cambiamenti Climatici (CMCC) Mehmet Pinar mehmet.pinar@edgehill.ac.uk Edge Hill University
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article Regional Climate Change Policy Under Positive Feedbacks and Strategic Interactions Abstract The surface albedo feedback, along with heat and moisture transport from the Equator to the Poles, is associated with polar amplification which is a well-established scientific fact. The present paper extends (Brock and Xepapadeas in Eur Econ Rev 94:263–282, 2017) to a non-cooperative framework with polar amplification, where regions decide emissions by maximizing own welfare. This can be regarded as a case of regional non-cooperation regarding climate change. Open loop and feedback solutions are derived and compared, in terms of temperature paths and welfare, with the cooperative solution. Carbon taxes which could bridge the gap between cooperative and non-cooperative emissions path are also derived. Finally, the framework is extended to a Ramsey set-up in which it is shown how the regional climate model can be coupled with standard optimal growth models. Numerical simulations confirm the theoretical results and provide insights about the size and the direction of deviations between the cooperative and the non-cooperative solutions. Arctic amplification, Spatial heat and moisture transport, Optimal policy, Emission taxes, Open loop, Feedback Nash equilibrium 1 2019 72 1 5 Environmental and Resource Economics 51 75 Q54 Q58 http://link.springer.com/10.1007/s10640-018-0254-8 text/html Abstract William Brock wbrock@ssc.wisc.edu University of Wisconsin University of Missouri Anastasios Xepapadeas xepapad@aueb.gr Athens University of Economics and Business University of Bologna
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article Simple Rules for Climate Policy and Integrated Assessment Abstract A simple integrated assessment framework that gives rules for the optimal carbon price, transition to the carbon-free era and stranded carbon assets is presented, which highlights the ethical, economic, geophysical and political drivers of optimal climate policy. For the ethics we discuss the role of intergenerational inequality aversion and the discount rate, where we show the importance of lower discount rates for appraisal of longer run benefit and of policy makers using lower discount rates than private agents. The economics depends on the costs and rates of technical progress in production of fossil fuel, its substitute renewable energies and sequestration. The geophysics depends on the permanent and transient components of atmospheric carbon and the relatively fast temperature response, and we allow for positive feedbacks. The politics stems from international free-rider problems in absence of a global climate deal. We show how results change if different assumptions are made about each of the drivers of climate policy. Our main objective is to offer an easy back-on-the-envelope analysis, which can be used for teaching and communication with policy makers. Simple rules, Climate policy, Ethics, Economics, Geophysics, Politics, Discounting with declining discount rates, Positive feedback, Free riding 1 2019 72 1 6 Environmental and Resource Economics 77 108 D81 H20 Q31 Q38 http://link.springer.com/10.1007/s10640-018-0280-6 text/html Abstract Frederick Ploeg rick.vanderploeg@economics.ox.ac.uk University of Oxford Vrije Universiteit Amsterdam Armon Rezai armon.rezai@wu.ac.at Vienna University of Economics and Business IIASA The Vienna Institute for International Economic Studies
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article Emission Reduction Technology Licensing and Diffusion Under Command-and-Control Regulation Abstract In this paper, we discuss a patented emission reduction technology that a monopolistic upstream eco-industry licenses to the polluting firms in a downstream oligopolistic industry, which is subject to command-and-control regulation. We explicitly model the interaction between the outside innovator and the polluting firms, using a non-cooperative game-theoretical framework. We find that full and partial diffusion can both occur in equilibrium, depending on the relationship between environmental regulation stringency and cleanliness improvement of the new technology. Furthermore, we study the impacts of environmental regulation stringency and the improvement in cleanliness on the adoption and the diffusion of the emission reduction technology. Clean technology diffusion, Command-and-control regulation, Eco-industry, Emission reduction technology, Technology licensing 2 2019 72 2 5 Environmental and Resource Economics 477 500 http://link.springer.com/10.1007/s10640-017-0201-0 text/html Abstract Haiyang Xia hyxia@ecust.edu.cn School of Business, East China University of Science and Technology Tijun Fan tjfan@ecust.edu.cn School of Business, East China University of Science and Technology Xiangyun Chang xychang@ecust.edu.cn School of Business, East China University of Science and Technology
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article Introduction: Special Issue on the Economics of Climate Change and Sustainability 1 2019 72 1 1 Environmental and Resource Economics 1 4 http://link.springer.com/10.1007/s10640-018-0303-3 text/html Abstract Elettra Agliardi elettra.agliardi@unibo.it University of Bologna Anastasios Xepapadeas anastasio.xepapadeas@unibo.it University of Bologna Athens University of Economics and Business
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article Cost-Risk Trade-Off of Mitigation and Solar Geoengineering: Considering Regional Disparities Under Probabilistic Climate Sensitivity Abstract Solar geoengineering (SGE) constitutes a viable option to ameliorate anthropogenic temperature rise. However, it does not simultaneously compensate for anthropogenic changes in further climate variables in a perfect manner. Here, we investigate to what extent a proponent of the 2 °C-temperature target would apply SGE in conjunction with mitigation in view of regional disparities in temperature and precipitation. We apply cost-risk analysis (CRA), which is a decision analytic framework that trades-off expected welfare-loss from climate policy costs and climate risks from transgressing a climate target. Here, in ‘Giorgi’-regional-scale analyses, we evaluate the optimal mix of SGE and mitigation under probabilistic information about climate sensitivity and generalize CRA in order to include regional temperature and precipitation risks. In addition to a mitigation-only analysis, social welfare is maximized for the following three joint-mitigation-SGE scenarios: temperature-risk-only, precipitation-risk-only, and equally weighted both-risks. We find that for regionally differentiated precipitation targets, the usage of SGE will be restricted. Our results indicate that SGE would save 70–75% of welfare-loss in the precipitation-risk-only and both-risks scenarios compared to a purely mitigation-based analysis with approximate overall welfare loss of 4% in terms of balanced growth equivalent from economic costs and climate risks. Climate targets, Cost-risk analysis, Decision under uncertainty, Mitigation, Solar geoengineering 1 2019 72 1 12 Environmental and Resource Economics 263 279 http://link.springer.com/10.1007/s10640-018-0261-9 text/html Abstract Elnaz Roshan elnaz.roshan@uni-hamburg.de Center for Earth System Research and Sustainability (CEN), University of Hamburg Mohammad M. Khabbazan mohammad.khabbazan@uni-hamburg.de Center for Earth System Research and Sustainability (CEN), University of Hamburg Hermann Held hermann.held@uni-hamburg.de Center for Earth System Research and Sustainability (CEN), University of Hamburg
oai:RePEc:kap:enreec:v:72:y:2019:i:1:d:10.1007_s10640-018-0268-22019-01-25RePEc:kap:enreec
article Weather Variations and International Trade Abstract In this paper I investigate the effect of weather variations in the exporter and importer countries separately, as well as a the difference between weather variations in both countries, on bilateral trade flows. The analysis is done at the country, sectoral and product levels, worldwide, and over the 1992–2014 period. I find a negative effect of temperature variations in the exporter country and in the difference between exporter and importer countries, on bilateral trade, at the country level. At the product level, both negative and positive effects arise, but the negative effect of temperature dominates. The temperature effects are on the agricultural and manufacturing sectors, especially in the textile and metals sectors. I show that possible channels are the impact of temperature on output and labour productivity. The negative impacts are larger in exporter countries that are closer to the Equator, that have lower quality of institutions, and that export to more remote countries. If countries are able to adapt to climate change, the long term effects of temperature variations should be lower than the contemporaneous effect. Nevertheless, my results on the long term effects analysis do not support this hypothesis, suggesting no or very low adaptation. Moreover, the negative effect of temperature is persistent and cumulative through several years after the temperature shock. Concerning precipitation variation effects, they are found mainly at the product level, with the positive effect dominating for the affected products. Bilateral international trade, Climate change impacts, Weather variations 1 2019 72 1 9 Environmental and Resource Economics 155 206 F14 F18 O13 O14 O50 Q54 Q56 http://link.springer.com/10.1007/s10640-018-0268-2 text/html Abstract Ingrid Dallmann ingriddallmann@gmail.com Univ. Paris Sud/University Paris Saclay
oai:RePEc:kap:enreec:v:72:y:2019:i:2:d:10.1007_s10640-017-0215-72019-01-25RePEc:kap:enreec
article Reliability and Validity in Nonmarket Valuation Abstract We propose a framework for assessing the accuracy of nonmarket values. This involves adapting two widely-used concepts. Reliability addresses variance and validity addresses potential biases. These concepts are formally defined and adapted to assess the accuracy of individual nonmarket valuation studies and the potential accuracy of valuation methods. We illustrate the framework by considering, in a preliminary way, the reliability and validity of the contingent-valuation and travel-cost methods. Nonmarket valuation, Reliability, Validity, Contingent valuation, Travel-cost method 2 2019 72 2 9 Environmental and Resource Economics 559 582 http://link.springer.com/10.1007/s10640-017-0215-7 text/html Abstract Richard C. Bishop rcbishop@wisc.edu University of Wisconsin-Madison Kevin J. Boyle kjboyle@vt.edu Virginia Tech Program in Real Estate
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article Considering Economic Efficiency in Ecosystem-Based Management: The Case of Horseshoe Crabs in Delaware Bay Abstract The welfare gains from incorporating ecosystem considerations into fisheries management are unclear and can vary widely between systems. Additionally, welfare gains depend on how ecosystem considerations are adopted. This paper uses an empirically parameterized bioeconomic model to explore the welfare implications of two definitions of ecosystem-based fisheries management (EBFM). We first define EBFM as a fishery management plan that maximizes the net present value of ecosystem services. We then explore an alternative definition that adds ecosystem considerations to a fishery managed with regulated open access. Our biological model reflects horseshoe crabs in Delaware Bay, which are harvested in a commercial fishery and are ecologically linked to migrating shorebirds populations, e.g. the endangered red knot. We find that introducing ecosystem considerations to a regulated open access fishery generates welfare gains on par with gains from addressing the commons problem even when fishery rents are completely dissipated. Additionally, solving the commons problem within an EBFM approach can provide substantial welfare gains above those from solving the commons problem in a single-species management framework. Bioeconomics, Delayed optimal control, Ecosystem-based fisheries management, Horseshoe crab (Limulus polyphemus), Non-fishing values, Open access, Red knot (Calidris canutus rufa) 2 2019 72 2 7 Environmental and Resource Economics 511 538 Q22 Q57 http://link.springer.com/10.1007/s10640-017-0204-x text/html Abstract Yue Tan yue.tan.yt@gmail.com Charles Schwab & Co., Inc. and Charles Schwab Bank Sunny L. Jardine jardine@uw.edu University of Washington
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article Evaluating New Policy Instruments of the Corporate Average Fuel Economy Standards: Footprint, Credit Transferring, and Credit Trading Abstract The reformed U.S. Corporate Average Fuel Economy (CAFE) standards have not only tightened the efficiency levels to be achieved by automakers, but also made substantial changes to the regulatory design and structure by introducing three new policy instruments (footprint-based targeting, intra-firm transferring of fuel economy credits across vehicle categories, and inter-firm trading of credits). While there are a number of economics studies on tightening CAFE standards, little attention has been paid to the design aspects. This paper uses policy simulation to evaluate the new policy instruments. First, I model and estimate vehicle purchase and utilization decisions by American households. Based on estimation results, I simulate the effects of four counterfactual CAFE policies with or without the three instruments. Simulation results suggest (1) footprint-based targeting has little impact at the aggregate market level, while at the individual automaker level it favors firms selling relatively large vehicles; (2) allowing intra-firm credit transferring (but not inter-firm credit trading) cuts aggregate gasoline consumption by 0.1–0.3%; and that (3) inter-firm credit trading significantly lowers the aggregate compliance costs (by $110–$140 million), and thus achieves the highest social welfare among the simulated policies. Corporate Average Fuel Economy (CAFE) standards, Footprint, Credit transferring, Credit trading, Policy simulation Q48, Q58, R48 2 2019 72 2 4 Environmental and Resource Economics 445 476 http://link.springer.com/10.1007/s10640-017-0200-1 text/html Abstract Takahiko Kiso tkiso@abdn.ac.uk University of Aberdeen
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article Impacts of Foreign Direct Investment and Economic Development on Carbon Dioxide Emissions Across Different Population Regimes Abstract According to the Green Solow model, the rise or fall of emissions over time depends on a scale effect and a technique effect, and, if the latter effect is held constant, changes in population growth will influence profiles of the environmental Kuznets curve (EKC). Utilizing four alternative measures of population size as threshold variables, this paper reexamines the effect of foreign direct investment (FDI) on carbon dioxide ( $$\hbox {CO}_{2}$$ CO 2 ) emissions and further tests EKC profiles for different population sizes. Our threshold test shows a double-threshold effect on $$\hbox {CO}_{2}$$ CO 2 emissions, implying the existence of three population regimes: least, moderately, and most populated. Our results show that an inverted U-shaped EKC relationship exists between $$\hbox {CO}_{2}$$ CO 2 emissions and economic development across different population regimes, when population density and absolute population in turn are used as a threshold variable. In addition, in the least populated regime, $$\hbox {CO}_{2}$$ CO 2 emissions significantly converge with increasing FDI. $$\hbox {CO}_{2 }$$ CO 2 emissions, Economic development, Foreign direct investment, Population 2 2019 72 2 10 Environmental and Resource Economics 583 607 C33 G11 Q53 http://link.springer.com/10.1007/s10640-018-0216-1 text/html Abstract Shu-Chen Chang shu-chen@nfu.edu.tw National Formosa University Meng-Hua Li National Formosa University
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article The Sectoral and Regional Economic Consequences of Climate Change to 2060 Abstract This paper presents a new detailed global quantitative assessment of the economic consequences of climate change (i.e. climate damages) to 2060. The analysis is based on an assessment of a wide range of impacts: changes in crop yields, loss of land and capital due to sea level rise, changes in fisheries catches, capital damages from hurricanes, labour productivity changes and changes in health care expenditures from diseases and heat stress, changes in tourism flows, and changes in energy demand for cooling and heating. A multi-region, multi-sector dynamic computable general equilibrium model is used to link different impacts until 2060 directly to specific drivers of economic growth, including labour productivity, capital stocks and land supply, as well as assess the indirect effects these impacts have on the rest of the economy, and on the economies of other countries. It uses a novel production function approach to identify which aspects of economic activity are directly affected by climate change. The model results show that damages are projected to rise twice as fast as global economic activity; global annual Gross Domestic Product losses are projected to be 1.0–3.3% by 2060. Of the impacts that are modelled, impacts on labour productivity and agriculture are projected to have the largest negative economic consequences. Damages from sea level rise grow most rapidly after the middle of the century. Damages to energy and tourism are very small from a global perspective, as benefits in some regions balance damages in others. Climate-induced damages from hurricanes may have significant effects on local communities, but the macroeconomic consequences are projected to be very small. Net economic consequences are projected to be especially large in Africa and Asia, where the regional economies are vulnerable to a range of different climate impacts. For some countries in higher latitudes, economic benefits can arise from gains in tourism, energy and health. The global assessment also shows that countries that are relatively less affected by climate change may reap trade gains. Economic growth, Climate change impacts, Climate change 2 2019 72 2 1 Environmental and Resource Economics 309 363 D58 O44 Q54 http://link.springer.com/10.1007/s10640-017-0197-5 text/html Abstract Rob Dellink rob.dellink@oecd.org OECD Environment Directorate Elisa Lanzi OECD Environment Directorate Jean Chateau OECD Environment Directorate
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article Correction to: As Bad as it Gets: How Climate Damage Functions Affect Growth and the Social Cost of Carbon The original article displays figure errors caused by miscommunication during the proofing stage. 1 2019 72 1 3 Environmental and Resource Economics 27 27 http://link.springer.com/10.1007/s10640-018-0222-3 text/html Abstract Lucas Bretschger lbretschger@ethz.ch Eidgenossische Technische Hochschule Zurich Aimilia Pattakou Eidgenossische Technische Hochschule Zurich
oai:RePEc:kap:enreec:v:72:y:2019:i:2:d:10.1007_s10640-017-0202-z2019-01-25RePEc:kap:enreec
article Is Trade in Permits Good for the Environment? Abstract We analyze the impact of trade in emission permits on environmental policy when countries trade a differentiated good. Pollution is always higher with tradable permits as compared to the case where permits are not internationally tradable. If pollution is a pure global public bad, i.e., the marginal damage from transboundary pollution is the same as that from local pollution, the permit price under trade equals the domestic marginal damage from own emissions. If pollution is not a pure global public bad, i.e., the marginal damage from transboundary pollution is less than that from local pollution, trade results in a permit price lower than the domestic marginal damage from own emissions—pollution is higher under trade relative to autarky. Regardless of the nature of transboundary pollution, the permit price (equivalent pollution tax) is lower and pollution is higher with internationally tradable permits than with nontradable permits. Emission permit trade, Strategic environmental policy, Leakage, Intra-industry trade 2 2019 72 2 6 Environmental and Resource Economics 501 510 Q56 F18 H23 Q58 http://link.springer.com/10.1007/s10640-017-0202-z text/html Abstract Harvey E. Lapan hlapan@iastate.edu Iowa State University Shiva Sikdar shivasikdar@gmail.com Keele University
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article Using Genuine Savings for Climate Policy Evaluation with an Integrated Assessment Model Abstract There has been a recent increase in efforts to develop broader models to assess the impact of climate change and climate change policies, both in terms of impact measures (beyond GDP) and in terms of modelling complexity (beyond DICE/RICE models). Climate policies aimed at reducing CO2 emissions can have impacts in multiple sectors of the economy, and can change consumption levels over time. We show how the sustainability indicator Genuine Savings can be endogenised within a general equilibrium model and used as a criterion for judging the impacts of such policies in terms of future well-being. Differences in Genuine Savings rates between CO2 emission reduction scenarios are discussed. We show how a broader, Genuine Savings-based assessment of climate change can result in a re-evaluation of the consequences and costs of inaction in terms of various climate change-related policies; and how multiple environmental and well-being outcomes can be analysed within a unified modelling framework. Genuine Savings (GS), Integrated assessment model (IAM), Lifecycle impact assessment (LCIA), Sustainability, Policy analysis 1 2019 72 1 13 Environmental and Resource Economics 281 307 Q01 Q54 Q56 http://link.springer.com/10.1007/s10640-018-0292-2 text/html Abstract Koji Tokimatsu tokimatsu.k.ac@m.titech.ac.jp Tokyo Institute of Technology National Institute of Advanced Science and Technology Louis Dupuy lpd3@st-andrews.ac.uk APESA University of St Andrews Nick Hanley Nicholas.Hanley@glasgow.ac.uk University of Glasgow
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article Global Energy Consumption in a Warming Climate Abstract We combine econometric analysis of the response of energy demand to temperature and humidity exposure with future scenarios of climate change and socioeconomic development to quantify the impacts of future climate warming on final energy consumption across the world. Globally, changes in climate circa 2050 have a moderate impact on energy consumption of 7–17%, depending on the degree of warming. Impacts vary in sign and magnitude across regions, fuels, and sectors. Climatically-induced changes in energy use are larger in tropical regions. Almost all continents experience increases in energy demand, driven by the commercial and industrial sectors. In Europe declines in energy use by residences drive an overall reduction in aggregate final energy. Energy use increases in almost all G20 economies located in the tropics, while outside of Europe G20 countries in temperate regions experience both increasing and declining total energy use, depending on the incidence of changes in the frequency of hot and cold days. The effect of climate change is regressive, with the incidence of increased energy demand overwhelmingly falling on low- and middle-income countries, raising the question whether climate change could exacerbate energy poverty. Panel data, Climate change, Adaptation, Energy 2 2019 72 2 2 Environmental and Resource Economics 365 410 N5 O13 Q1 Q54 http://link.springer.com/10.1007/s10640-017-0198-4 text/html Abstract Enrica Cian enrica.decian@feem.it Centro Euro-Mediterraneo sui Cambiamenti Climatici and Fondazione Eni Enrico Mattei Ian Sue Wing isw@bu.edu Boston University
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article The Dynamics of Foreign Direct Investments in Land and Pollution Accumulation 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 revenues of the local population. Using numerical simulations, we show that a revenue-increasing path may occur only if the pollution tax is high enough and the impact of the external sector on pollution is low enough. Otherwise, foreign direct investments may end up impoverishing the local population. Foreign direct investments, Land grabbing, Two-sector model, Environmental negative externalities, Pollution taxation 1 2019 72 1 8 Environmental and Resource Economics 135 154 D62 F21 O15 O41 Q50 http://link.springer.com/10.1007/s10640-018-0263-7 text/html Abstract Simone Borghesi Simone.Borghesi@eui.eu European University Institute (EUI) University of Siena Giorgia Giovannetti giorgia.giovannetti@unifi.it European University Institute University of Florence Gianluca Iannucci gianluca.iannucci@unifi.it University of Florence Paolo Russu russu@uniss.it University of Sassari
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article Cost Risk Analysis: Dynamically Consistent Decision-Making under Climate Targets Abstract Cost risk analysis (CRA) is currently emerging as a noticed decision-analytic framework within the field of climate economics. It combines the expected utility-based structure of cost–benefit analysis with the target-based approach of cost effectiveness analysis (CEA). As such, it offers a promising candidate for those decision-makers who would like to express their precautionary attitude in view of deeply uncertain global warming impacts through a temperature target, yet who would like to avoid the dynamic inconsistencies of CEA. We review both its rationale and key results derived from it. (1) Without a delay in mitigation policy as against the CRA-optimal solution, CRA produces solutions resembling those obtained by means of cost effectiveness analysis, thereby retroactively justifying the approach underlying the nearly 1000 scenarios gathered in IPCC AR5. (2) With an increasing delay, however, CRA would result in decreasing mitigation costs, contrary to CEA. (3) CRA has demonstrated that it is possible to determine the economic value of climate information, unlike CEA. Here, for the first time, a complete list of the assumptions on which CRA is based is presented, including a missing proof. In closing, we explain finding (1) and thereby also show that, without a delay, CRA-based solutions are universal in that they essentially do not depend on the choice of a ‘risk function.’ Climate targets, Dynamic consistency, Cost risk analysis, Decision under uncertainty, Mitigation, precautionary principle 1 2019 72 1 11 Environmental and Resource Economics 247 261 http://link.springer.com/10.1007/s10640-018-0288-y text/html Abstract Hermann Held hermann.held@uni-hamburg.de University of Hamburg
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article Pricing Carbon and Adjusting Capital to Fend Off Climate Catastrophes Abstract The optimal reaction to a potential productivity shock as a consequence of climate tipping is to substantially tax carbon in order to curb the risk of tipping, but to adjust capital as well in order to smooth consumption when tipping occurs. We also allow for conventional marginal climate damages and decompose the optimal carbon tax in two catastrophe components and the conventional component. We distinguish constant and increasing marginal hazards. Moreover, the productivity catastrophe is compared with recoverable catastrophes and with a shock to the climate sensitivity. Finally, we allow for investments in adaptation capital as an alternative to counter the potential adverse effects of climate tipping. Quantitatively, the results are investigated with a calibrated model for the world economy. Climate tipping point, Risk, Social cost of carbon, Precautionary capital, Economic growth 1 2019 72 1 4 Environmental and Resource Economics 29 50 D81 H20 O40 Q31 Q38 http://link.springer.com/10.1007/s10640-018-0231-2 text/html Abstract Frederick Ploeg rick.vanderploeg@economics.ox.ac.uk University of Oxford Vrije Universiteit Aart Zeeuw A.J.deZeeuw@uvt.nl Tilburg University The Royal Swedish Academy of Sciences
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article As Bad as it Gets: How Climate Damage Functions Affect Growth and the Social Cost of Carbon Abstract The paper analyzes the effects of varying climate impacts on the social cost of carbon and economic growth. We use polynomial damage functions in a model of an endogenously growing two-sector economy. The framework includes nonrenewable natural resources which cause greenhouse gas emissions; pollution stock harms capital and reduces economic growth. We find a big effect of the selected damage function on the social cost of carbon and a significant impact on the growth rate. In our calibration a quartic damage function raises the social cost of carbon by more than a factor of ten compared to the linear function. In the social optimum the growth rate remains positive even when the damage function is highly convex. We test the robustness of the results by adding pollution decay, lowering the elasticity of intertemporal substitution, and addressing uncertainty, which does not alter our results. We find that high marginal climate damages require stringent climate policies but do not preclude positive economic growth despite convexity, provided that policies are designed in an efficient manner. Climate damages, Social cost of carbon, Endogenous growth, Polynomial functions 1 2019 72 1 2 Environmental and Resource Economics 5 26 Q43 O47 Q56 O41 http://link.springer.com/10.1007/s10640-018-0219-y text/html Abstract Lucas Bretschger lbretschger@ethz.ch Eidgenossische Technische Hochschule Zurich Aimilia Pattakou Eidgenossische Technische Hochschule Zurich
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article Optimal Climate Policy for a Pessimistic Social Planner Abstract This paper characterizes the preferences of a pessimistic social planner concerned with the potential costs of extreme, low-probability climate events. This pessimistic attitude is represented by a recursive optimization criterion à la Hansen and Sargent (IEEE Trans Autom Control 40:968–971, 1995) implying that a very sharp and early mitigation effort arises as the optimal climate policy. We find that for sufficiently high levels of risk-aversion an aggressive mitigation policy is chosen even when the discount factor is low. The dynamics of the optimal mitigation policy displays an inverted policy ramp with a sharp and immediate mitigation effort, followed by a gradual reduction until the pollution stock converges towards its long-run equilibrium. We also observe that the initial sharpness of the mitigation effort requires substantial capture and sequestration of carbon from the atmosphere. We extend our analysis showing that when the social planner observes the concentration and emission levels with a time lag, she undertakes a more aggressive policy to reduce the greater degree of uncertainty she faces. Finally, we show under which conditions the optimal mitigation policy dictated by our analysis coincides with that derived using the robustness approach of Hansen and Sargent (Robustness, Princeton University Press, Princeton, 2008). Climate change policy, Risk-aversion, Pessimism and precautionary principle, Linear exponential quadratic Gaussian, Carbon capture and sequestration 2 2019 72 2 3 Environmental and Resource Economics 411 443 C61 Q54 http://link.springer.com/10.1007/s10640-017-0199-3 text/html Abstract Edilio Valentini valentin@unich.it University G. d’Annunzio of Chieti-Pescara Paolo Vitale p.vitale@unich.it University G. d’Annunzio of Chieti-Pescara
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article The SEEA-Based Integrated Economic-Environmental Modelling Framework: An Illustration with Guatemala’s Forest and Fuelwood Sector Abstract This paper develops and operationalizes the integrated economic-environmental modelling (IEEM) platform which integrates environmental data organized under the first international system of environmental economic accounting with a powerful dynamic economy-wide modelling approach. IEEM enables the ex-ante economic analysis of policies on the economy and the environment in a quantitative, comprehensive and consistent framework. IEEM elucidates the two-way interrelationships between the economy and environment, considering how economic activities depend on the environment as a source of inputs and as a sink for their outputs. In addition to standard economic impact indicators such as gross domestic product, income and employment, IEEM generates indicators that describe policy impacts on the use of environmental resources, wealth and environmental quality which together determine prospects for future economic growth and well-being. To illustrate the analytical capabilities of IEEM, the model is calibrated with Guatemala’s SEEA and applied to analysis of its forest and fuelwood sector where negative health and environmental impacts arise from inefficient fuelwood use. Ex-ante economic impact evaluation, Evidence-based policy design, System of environmental-economic accounting, Dynamic computable general equilibrium model, System of national accounting, Economic and environmental indicators, Wealth, Natural capital, Ecosystem services 2 2019 72 2 8 Environmental and Resource Economics 539 558 http://link.springer.com/10.1007/s10640-017-0205-9 text/html Abstract Onil Banerjee obanerjee@gmail.com Inter-American Development Bank Martin Cicowiez mcicowiez@gmail.com Universidad Nacional de la Plata Renato Vargas renovargas@gmail.com Wealth Accounting and Valuation of Ecosystem Services (WAVES) Program Mark Horridge mark.horridge@gmail.com Victoria University
oai:RePEc:kap:enreec:v:82:y:2022:i:1:d:10.1007_s10640-022-00657-22022-04-27RePEc:kap:enreec
article Tradeable Nitrogen Abatement Practices for Diffuse Agricultural Emissions: A ‘Smart Market’ Approach Abstract Markets in pollution permits for managing environmental quality have been advocated by economists since early 1970s as a mechanism that can deliver pollution reduction targets at lower cost to regulated entities than traditional uniform command-and control approaches. This study explores whether a ‘smart market’ cap-and-trade scheme between non-point sources can offer meaningful, robust and policy amenable, advantages over alternative approaches for nitrogen management in a realistic setting: 6504 individual farms in Limfjorden catchment, Denmark. The scheme involves multilateral trading of nitrogen emission rights among farms via changes in agricultural land management practices under a catchment-level cap on total nitrogen load. In this, the first exploration of non-point to non-point smart market nitrogen trading in a real setting, we estimate efficiency gains compared to uniform command-and-control regulation, explore the robustness of these gains in the face of non-participation, and reflect on farmers’ potential acceptance of the trading market in comparison with its command-and-control analog: spatially-targeted regulation, implemented via location-specific limits on nitrogen leaching. Results indicate that the smart market has the potential to substantially reduce the cost of meeting the catchment’s nitrogen reduction target. For a 21.5% reduction from baseline nitrogen load, the market delivers cost savings of 56% (DKK273 million, €36.6 million) compared to uniform regulation, with participating farms realising a mean net benefit of DKK 723/ha (€ 97/ha). Market performance is relatively robust against transaction cost; when delivering a 21.5% reduction in nitrogen load to Limfjorden, approximately 70% of the overall efficiency gain could be retained if only 24% of farms engaged with the market. Land use, Diffuse pollution, Leaching, Linear programming, Simulations, Water Framework Directive, Water quality trading 1 2022 82 5 2 Environmental and Resource Economics 29 63 http://link.springer.com/10.1007/s10640-022-00657-2 text/html Abstract Syezlin Hasan s.hasan@griffith.edu.au Griffith University Line Block Hansen The Danish Economic Councils James C. R. Smart Griffith University Griffith University Berit Hasler Aarhus University Mette Termansen University of Copenhagen
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article Preferences for Distributional Impacts of Climate Policy Abstract What role do people think distributional aspects should play in the design of climate policy? The literature assessing climate policies has shown that assumptions regarding peoples’ distributional preferences for climate change policy impacts are central for policy assessment, but empirical evidence for such preferences is lacking. We design a discrete choice experiment that varies how climate policies affect the income of future generations living in three geographical regions, with distinctly different current and predicted future income levels. The experiment is implemented on a sample of the Danish population and preferences are modelled in a latent class model. Our results show that a small majority of the sample (60%) hold preferences consistent with inequity aversion with respect to future income effects of climate policies across regions. For the same group, we find that preferences for co-benefits for current generations reflect a form of altruism, but not inequity aversion. In both cases, the altruistic aspects are moderated by an element of preferences for positive outcomes in own region too. The remaining classes display preferences with a varying focus on impacts in their own region or simply no support for further climate policy. Our results provide some support for the inclusion of social preferences regarding distributional effects of climate change policies in policy assessments, and hence for the significant impact on policy, this inclusion will have. Choice experiment, Social preferences, Inequity aversion, Altruism, Climate change impacts, Latent class, Social cost of carbon 1 2020 75 1 1 Environmental and Resource Economics 1 24 D30 H41 Q51 Q54 http://link.springer.com/10.1007/s10640-019-00386-z text/html Abstract Lea S. Svenningsen leasks@dtu.dk Technical University of Denmark Bo Jellesmark Thorsen bjt@ifro.ku.dk University of Copenhagen University of Copenhagen
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article Determining the Social Cost of Carbon: Under Damage and Climate Sensitivity Uncertainty Abstract This article quantifies the impact on optimal climate policy, of both damage elasticity and equilibrium climate sensitivity uncertainty, under separable preferences for risk and intergenerational inequality. The primary findings are as follows. (1) Such preferences can depress the social cost of carbon (SCC) when calibration aims at matching actual economic outcomes, countering the prevailing view that the SCC is greater with separable than with conventional entangled preferences. (2) Damage elasticity uncertainty has larger effects on climate policy than equilibrium climate sensitivity uncertainty, even under high impact tail risk of the latter. (3) Risk aversion decisively strengthens optimal climate policy under joint damage and climate sensitivity uncertainty, than with a single source of uncertainty alone. Indeed, failing to account for the interaction between damage and climate sensitivity uncertainty underestimates the cost of climate change by more than US dollars 1 trillion. Social cost of carbon (SCC), Epstein–Zin–Weil preferences, DICE, Climate change, Risk aversion 1 2020 75 1 4 Environmental and Resource Economics 79 103 http://link.springer.com/10.1007/s10640-019-00389-w text/html Abstract Samuel Jovan Okullo s.j.okullo@outlook.com Zhongnan University of Economics and Law Potsdam Institute for Climate Impact Research (PIK)
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article Do Benefits from Dynamic Tariffing Rise? Welfare Effects of Real-Time Retail Pricing Under Carbon Taxation and Variable Renewable Electricity Supply Abstract We analyze the gross welfare gains from real-time retail pricing in electricity markets where carbon taxation induces investment in variable renewable technologies. Applying a stylized numerical electricity market model, we find a U-shaped association between carbon taxation and gross welfare gains. The benefits of introducing real-time pricing can accordingly be relatively low at relatively high carbon taxes and vice versa. The non-monotonous change in welfare gains can be explained by corresponding changes in the inefficiency arising from “under-consumption” during low-price periods rather than by changes in wholesale price volatility. Our results may cast doubt on the efficiency of ongoing roll-outs of advanced meters in many electricity markets, since net benefits might only materialize at relatively high carbon tax levels and renewable supply shares. Real-time pricing, Variable renewable electricity, Carbon tax, Welfare analysis, Partial equilibrium modeling 1 2020 75 1 8 Environmental and Resource Economics 183 213 D04 D10 D47 L10 L51 L94 Q41 Q42 Q47 http://link.springer.com/10.1007/s10640-019-00393-0 text/html Abstract Christian Gambardella chgamba@pik-potsdam.de Potsdam Institute for Climate Impact Research Michael Pahle michael.pahle@pik-potsdam.de Potsdam Institute for Climate Impact Research Wolf-Peter Schill wschill@diw.de German Institute for Economic Research (DIW Berlin)
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article Taxing Consumption to Mitigate Carbon Leakage Abstract Unilateral actions to reduce CO2 emissions could lead to carbon leakage such as relocation of emission-intensive and trade-exposed industries (EITE). To mitigate such leakage, countries often supplement an emissions trading system (ETS) with free allocation of allowances to exposed industries, e.g. in the form of output-based allocation (OBA). This paper examines the welfare effects of supplementing OBA with a consumption tax on EITE goods. In particular, we investigate the case when only a subset of countries involved in a joint ETS introduces such a tax. The analytical results suggest that the consumption tax would have unambiguously global welfare improving effects, and have welfare improving effects for the tax introducing country as well unless there are strong unfavorable terms-of-trade effects. Numerical simulations in the context of the EU ETS support the analytical findings, including that the consumption tax is welfare improving for the single country that implements the tax. Carbon leakage, Consumption tax, Emission trading system, Output-based allocation, Unilateral policy 1 2020 75 1 7 Environmental and Resource Economics 151 181 D61 F18 H23 Q54 http://link.springer.com/10.1007/s10640-019-00392-1 text/html Abstract Kevin R. Kaushal kevin.kaushal@ssb.no Statistics Norway Norwegian University of Life Sciences Knut Einar Rosendahl knut.einar.rosendahl@nmbu.no Norwegian University of Life Sciences
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article Social Cooperation in the Context of Integrated Private and Common Land Management Abstract Several discrete choice experiment studies have investigated issues in the design of incentive programs to enhance the provision of ecosystem services. In these studies, ownership of land is usually private, and landowners make decisions independently of each other. However, the assumption of independence may be invalid when decision making involves a spatial setting and social networks. This study presents a new approach that accounts for social cooperation and preference interdependence across farmers in a land management context with mixed ownership. We formulate an econometric model of implicit choice set formation that accounts for (1) farmers’ expectations regarding mutual positive benefits from cooperation in an integrated land management system, and (2) the potential interdependence of preferences across farmers within the same socio-spatial group. We show that cooperation expectations matter for the decision of whether to engage in cooperative management and also for welfare estimates. Our model can identify sources of heterogeneities arising from cooperation expectations in ways that would not be possible using a reduced-form choice model. The assumption of independence should be checked routinely in similar settings to avoid potential endogeneity problems in discrete choice models when dealing with data that have a social-spatial dimension. Choice set formation, Common pool, Ethiopia, Hybrid choice, Land management, Latent variable, Social interaction, Social network 1 2020 75 1 5 Environmental and Resource Economics 105 136 D70 Q15 Q24 Q5 http://link.springer.com/10.1007/s10640-019-00390-3 text/html Abstract Habtamu Tilahun Kassahun h.kassahun@griffith.edu.au htk695@gmail.com Griffith University Bo Jellesmark Thorsen bjt@ifro.ku.dk University of Copenhagen Joffre Swait joffre.swait.jr@gmail.com Erasmus University Rotterdam Jette Bredahl Jacobsen jbj@ifro.ku.dk University of Copenhagen
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article Production Risk in the Norwegian Fisheries Abstract Although fishing is regarded as a risky production process, limited attention has been given to the impact of input factor use on production risk. Production risk is particularly important for fisher behavior and fisheries management when input factors are restricted, since input restrictions can influence production risk in addition to output levels. This paper investigates production risk by estimating production and risk functions for the main vessel groups in the Norwegian fishing fleet. The results indicate that production risk is present and that the effect of input use on production risk varies between vessel groups. Capital has a risk-reducing effect in the ocean fleet, but are risk-increasing in coastal fisheries. Fuel use is found to be a risk-increasing input for most of the vessel groups, while labor use is risk-reducing. Production risk, Norwegian fisheries, Input use, Groundfish, Pelagic fish 1 2020 75 1 6 Environmental and Resource Economics 137 149 http://link.springer.com/10.1007/s10640-019-00391-2 text/html Abstract Frank Asche frank.asche@ufl.edu University of Florida University of Stavanger Andreea L. Cojocaru andreea.cojocaru@uis.no University of Stavanger Ruth B. M. Pincinato ruth.b.pincinato@uis.no University of Stavanger Kristin H. Roll kristin.roll@usn.no University of Stavanger University of South-Eastern Norway
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article Contingent Behavior and Asymmetric Preferences for Baltic Sea Coastal Recreation Abstract In this study, we augment the traditional travel cost approach with contingent behavior data for coastal recreation. The objective is to analyze the welfare implications of future changes in the conditions of the Baltic Sea due to climate change and eutrophication. Adding to the literature, we assess the symmetricity of welfare effects caused by improvements and deteriorations in environmental conditions for a set of quality attributes. Responses are derived from identical online surveys in Finland, Germany and Latvia. We estimate recreational benefits using linear and non-linear negative binomial random-effects models. The calculated annual consumer surpluses are considerably influenced by the magnitude of the environmental changes in the three countries. We also observe asymmetries in the effects of environmental improvements and deteriorations on the expected number of visits. In particular, the results indicate that deteriorations lead to larger or more significant impacts than improvements in the case of blue-green algal blooms and algae onshore for Finland, water clarity for Germany, and water clarity and blue-green algal blooms for Latvia. For the remaining attributes, the effects are ambiguous. Baltic Sea, Recreational benefits, Valuation, Contingent behavior, Eutrophication, Climate change, Water quality, Asymmetric preferences 1 2020 75 1 3 Environmental and Resource Economics 49 78 Q26 Q51 http://link.springer.com/10.1007/s10640-019-00388-x text/html Abstract Christine Bertram christine.bertram@ifw-kiel.de Kiel Institute for the World Economy (IfW) Heini Ahtiainen Natural Resources Institute Finland (Luke) Jürgen Meyerhoff Kiel Institute for the World Economy (IfW) Technische Universität (TU) Berlin Kristine Pakalniete AktiiVS Ltd Eija Pouta Natural Resources Institute Finland (Luke) Katrin Rehdanz Kiel Institute for the World Economy (IfW) Kiel University
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article Payments from Households to Distant Polluting Firms Abstract We investigate a novel way to encourage separation between firms, causing local pollution, and their victims (households): payments from households to distant polluting firms. These payments do not require monitoring of firms’ emissions or their abatement costs. In our model, households and firms can choose from two locations (A and B, with A larger than B). Households incur environmental damage from firms in the same location. Under laissez faire, payments from households in one location (say A) to firms in the other location (say B) will prompt firms to move from A to B and to stay there, thus reducing damage to households in A. The maximum that households are willing to pay temporarily is the amount that currently makes them indifferent between A and B. The payments make A less attractive to firms as well as to households. The unique positive-payment equilibrium implements the global welfare optimum where laissez faire does not. We examine from which starting points this payment equilibrium can be reached. Location dynamics, Pollution victims, Coasean transfers 3 2022 82 7 7 Environmental and Resource Economics 681 715 http://link.springer.com/10.1007/s10640-022-00683-0 text/html Abstract Bouwe R. Dijkstra bouwe.dijkstra@nottingham.ac.uk University of Nottingham University of Nottingham
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article International Environmental Agreements and Black Technology Abstract This paper analyzes the stability of international environmental agreements in a dynamic game when the generation of both renewables and fossil fuel based energy requires specialized capital stocks or technologies, respectively. Two contract types are considered. At an incomplete (a complete) contract, the coalition coordinates only (both) CO $$_2$$ 2 emissions (and renewable energy investments) of its members. In contrast to the results of Battaglini and Harstad (J Polit Econ 124:160–204, 2016) who endorse incomplete contracts to increase the coalition size, only small coalitions are stable regardless of whether the contract is complete or incomplete. This result also holds if black technology is temporary not completely used or transfers are considered. International environmental agreements, Black capacity, Complete contract, Incomplete contract 3 2022 82 7 4 Environmental and Resource Economics 601 624 H87 Q54 Q55 http://link.springer.com/10.1007/s10640-022-00668-z text/html Abstract Gilbert Kollenbach gilbert.kollenbach@fernuni-hagen.de University of Hagen
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article The Effect of Rebate and Loan Incentives on Residential Heat Pump Adoption: Evidence from North Carolina Abstract Electrification can promote deep decarbonization to tackle climate change with a cleaner power grid. Electric heat pumps provide a feasible and energy-efficient way to replace fossil-fuel furnaces for space heating. Rebate and loan programs are the two most widely used incentives for residential heat pump installations in the U.S. This study compares the impacts of rebate and loan incentives on residential air-source heat pump adoption in North Carolina. First, our results show that the rebate program ($300–$450 per system) increases the adoption density by 13% in a year. Second, we find that the rebate program is more effective in promoting heat pump adoption for average consumers than two loan programs (annual loan interest rate: 9%, 3.9%). Third, we find the rebate program is less effective for low-income households than high-income households. Lastly, we compare the rebate with the loan programs in terms of cost-effectiveness and we find the rebate program is more cost-effective under certain circumstances. Adoption, Electrification, Heat pumps, Loan, Rebate 3 2022 82 7 9 Environmental and Resource Economics 741 789 http://link.springer.com/10.1007/s10640-022-00691-0 text/html Abstract Xingchi Shen University of Maryland College Park Yueming Lucy Qiu yqiu16@umd.edu University of Maryland College Park Pengfei Liu University of Rhode Island Anand Patwardhan University of Maryland College Park
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article Fisheries Management in Congested Waters: A Game-Theoretic Assessment of the East China Sea Abstract Fisheries in the East China Sea (ECS) face multiple concerning trends. Aside from depleted stocks caused by overfishing, illegal encroachments by fishermen from one nation into another’s legal waters are a common occurrence. This behavior presumably could be stopped via strong monitoring, controls, and surveillance (MCS), but MCS is routinely rated as below standards for nations bordering the ECS. This paper generalizes the ECS to a model of a congested maritime environment, defined as an environment where multiple nations can fish in the same waters with equivalent operating costs, and uses game-theoretic analysis to explain why the observed behavior persists in the ECS. The paper finds that nations in congested environments are incentivized to issue excessive quotas, which in turn tacitly encourages illegal fishing and extracts illegal rent from another’s legal waters. This behavior couldn’t persist in the face of strong MCS measures, and states are thus likewise incentivized to use poor MCS. A bargaining problem is analyzed to complement the noncooperative game, and a key finding is the nation with lower nonoperating costs has great leverage during the bargain. Fishing disputes, Fisheries management, Game theory, Illegal fishing, Maritime law enforcement 3 2022 82 7 8 Environmental and Resource Economics 717 740 http://link.springer.com/10.1007/s10640-022-00688-9 text/html Abstract Michael Perry mperry20@gmu.edu George Mason University
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article Regulation of Location-Specific Externalities from Small-Scale Polluters Abstract Emission damages caused by small-scale polluters such as farms, vehicles, homes and small businesses are often location-specific and such polluters are often regulated through a combination of location-differentiated cleaner technology standards and uniform, ʻdirtyʼ input regulation. We investigate how such regulations should be designed and combined under realistic assumptions. We find that if the available cleaner technologies are ‘emission capturing’ (e.g., end-of-pipe filters), they should be encouraged in both high and low damage areas, while if they are ‘input displacing’ (i.e., facilitating replacement of dirty input by cleaner input), they should be encouraged in high damage areas, but discouraged in low damage areas. Dirty input use should always be discouraged and the optimal regulation intensity may be substantial, particularly if the available cleaner technologies are input displacing. Location-specific externalities, Clean technologies, Regulation, Policy 3 2022 82 7 1 Environmental and Resource Economics 507 528 H23 Q58 D62 http://link.springer.com/10.1007/s10640-022-00661-6 text/html Abstract Eirik S. Amundsen eirik.amundsen@uib.no University of Bergen University of Copenhagen Lars Gårn Hansen lgh@ifro.ku.dk University of Copenhagen Hans Jørgen Whitta-Jacobsen jacob@econ.ku.dk University of Copenhagen
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article Empowerment of Social Norms on Water Consumption Abstract This study develops a model of water extraction using endogenous social norms. Many users are connected by a unique shared resource that can become scarce in the case of over-exploitation. Preferences of individuals are guided by their extraction values and their taste for conformity to social norms which provide incentives to follow others. As the main result of this study, the uniqueness of the Nash equilibrium is established under a sufficient condition. Subsequently, some comparative statics analysis shows the effects of changes in individual heterogeneous parameters, conformism, and network density on the global quantity extracted. Welfare and social optimum properties are established to avoid the tragedy of the commons and suboptimal consumption of water. Finally, this theoretical framework is completed by extensions to discuss anticonformist behaviours, levers of water preservation, and awareness of consumers. Comparative statics, Conformism, Nash equilibrium, Network theory, Social norms, Water extraction 3 2022 82 7 5 Environmental and Resource Economics 625 655 D04 D80 Q01 Q25 http://link.springer.com/10.1007/s10640-022-00676-z text/html Abstract Pauline Pedehour pauline.pedehour@univ-nantes.fr LEMNA, Université de Nantes Lionel Richefort lionel.richefort@univ-nantes.fr LEMNA, Université de Nantes
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article The Environmental Tax: Effects on Inequality and Growth Abstract Within an R&D-driven growth model, this paper studies how an environmental tax and its cost both for firms and consumers affect individuals’ incentives for human capital accumulation, income inequality, and the per capita growth rate. The results show that when a low share of the environmental tax on consumption is levied, a tighter environmental tax results in an increase in individuals’ human capital accumulation and income inequality between both unskilled and skilled workers and among skilled workers and spurs the per capita growth rate. A numerical simulation for the U.S. economy illustrates the results and shows that the increase in income inequality is very modest compared to the large increase in the per capita output growth rate. Moreover, it can be seen that a no-carbon-pricing green policy with command and control instruments, for example, has a negative effect on both the incentive for human capital accumulation and the per capita growth rate. Endogenous technological change, Carbon pricing, Inequality, Growth 3 2022 82 7 2 Environmental and Resource Economics 529 572 I24 O30 O44 Q58 http://link.springer.com/10.1007/s10640-022-00662-5 text/html Abstract Luca Spinesi luca.spinesi@uniroma3.it University of Rome Tre
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article The Effect of Information Provision on Stated and Revealed Preferences: A Field Experiment on the Choice of Power Tariffs Before and After Japanese Retail Electricity Liberalization Abstract This paper examines differences in attitudes towards electricity fee plans when information is provided on electricity bills based on past electricity consumption. We conducted randomized controlled trial stated preference (SP) and revealed preference (RP) experiments on the choice of electricity rates before and after liberalization. In the SP experiment, we measured participants' valuations of their electricity pricing plans. We found that providing information about the participants' benefit from switching diminished the tendency towards overconfidence. The valuation decreases substantially when information shows that a loss will be incurred from switching. The results of the RP and SP experiments differ. We found that the selection was not changed in the RP experiment even when providing information that a loss would be incurred. Randomized controlled trial (RCT), Stated preference, Revealed preference, Information provision, Power tariff, Overconfidence 3 2022 82 7 3 Environmental and Resource Economics 573 599 C93 D91 Q49 http://link.springer.com/10.1007/s10640-022-00667-0 text/html Abstract Takunori Ishihara ishihara.takunori@kuas.ac.jp Kyoto University of Advanced Science Takanori Ida ida@econ.kyoto-u.ac.jp Kyoto University
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article The Road to a Low Emission Society: Costs of Interacting Climate Regulations Abstract Transportation is one of the main contributors to greenhouse gas emissions. Climate regulations on transportation are often a mix of sector-specific regulations and economy-wide measures (such as emission pricing). In this paper we consider how different and partly overlapping climate regulations interact and what are the effects on economic welfare, abatement costs and emissions? Our focus is on Norway, a nation where high taxation of conventional fossil-fuelled cars has paved the floor for another pillar of climate policies: promotion of electric vehicles (EVs) in private transport. Our contribution to the literature is two-fold. First, we analyse the costs and impacts of the partly overlapping climate regulations in transportation—the cap on domestic non-ETS emissions and the goal of all new cars for private households being EVs—focussing on the outcome in 2030. Second, we respond to a gap in the literature through a methodological development in economy-wide computable general equilibrium (CGE) approaches for climate policy by introducing EV technologies as an explicit transport equipment choice for private households. We find that, for the case of Norway, combining a specific EV target with policy to cap emissions through a uniform carbon price more than doubles the welfare costs. Climate policy, Carbon pricing, Zero-emission transport policies, Overlapping regulations, Modelling electric vehicles, CGE-model 3 2023 86 11 9 Environmental and Resource Economics 565 603 C68 H23 Q54 Q58 http://link.springer.com/10.1007/s10640-023-00804-3 text/html Abstract Brita Bye brita.bye@ssb.no Statistics Norway Kevin R. Kaushal kevin.kaushal@ssb.no Statistics Norway Orvika Rosnes orvika.rosnes@vista-analyse.no Vista Analyse Karen Turner karen.turner@strath.ac.uk University of Strathclyde Hidemichi Yonezawa hidemichi.yonezawa@ssb.no Statistics Norway
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article Stability of Efficient International Agreements on Solar Geoengineering Abstract Solar geoengineering (SG) may have the potential to reduce extreme climate damages worldwide. Yet, international coordination will make the difference between success and failure in leveraging it. Using a simple game-theoretic framework, we investigate whether the stability of an efficient, self-enforcing international agreement on SG is attainable. We demonstrate that side payments from countries less vulnerable to climate change to those more vulnerable can guarantee the stability of an efficient agreement. The size of the side payments will vary within a zone of possible agreement, which will change depending on certain key assumptions. For example, assuming stronger mitigation reduces the necessary payments. Alternatively, asymmetry in national damages from SG over-provision vs. under-provision justifies larger payments; here, the welfare-optimal strategy may be deployment that makes no one worse off. We also show that an agreement may be stable without side payments if deployment costs are substantial and counter-SG is available, while a moratorium may be socially optimal if SG brings substantial global non-excludable fixed costs. Solar geoengineering, International environmental agreements, Side payments, Free driver, Global cooperation 3 2023 86 11 12 Environmental and Resource Economics 673 712 Q54 H41 D62 D02 C72 F53 http://link.springer.com/10.1007/s10640-023-00807-0 text/html Abstract Irina Bakalova bakalova.irina@gmail.com Harvard University HSE University Mariia Belaia mbelaia@gmu.edu George Mason University
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article The Impact of Environmental Regulation on Firms’ Product Quality: Evidence from Chinese Exporters Abstract This paper examines the impact of two wastewater regulations on export product quality in China. Using a difference-in-differences approach and detailed data at the firm-product-country-year level, the study finds that overall product quality improves by 2%. Specifically, the first regulation leads to a 4.8% improvement, while the second regulation, which has stricter standards, results in a 9.3% decline in product quality. However, when aggregating the data at the firm-year level, decomposition analysis suggests that both regulations’ intensive and extensive marginal effects almost equally improve product quality. Mechanistic analyses attribute the positive impact of the first regulation to advanced equipment adoption, innovation enhancement, and changes in firms’ composition and products. Conversely, the negative effect of the second regulation stems from the reduction in the scale of firms producing high-quality products. Moreover, despite higher production costs and reduced labor demand, the first regulation enhances firms’ competitiveness, while the second regulation diminishes their competitiveness. Wastewater regulation, Product quality, Porter hypothesis, Competitiveness 3 2023 86 11 11 Environmental and Resource Economics 645 672 Q52 F1 D22 http://link.springer.com/10.1007/s10640-023-00806-1 text/html Abstract Longzhou Wang longzho1@ualberta.ca University of Alberta
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article Court Decisions and Air Pollution: Evidence from Ten Million Penal Cases in India Abstract This study explores the relationship between air pollution and judicial rulings. Although environmental factors should not affect judicial decisions, realists contend that there is substantial room for external factors to transpire into sentencing and sway human reasoning. We hypothesize that air pollution is one of these factors. Using Poisson panel models and instrumental variable techniques, we show that exposure leads to more convictions. We posit that this effect occurs because the impact of exposure on the central nervous system changes the cognitive performance and empathy of judges. Back-of-the-envelope calculations suggest that decreasing average air pollution in India by one standard deviation would lead to up to 145, 000 fewer convictions regarding currently active cases. Judicial hearings, Air pollution, Fine particulate matter, Convictions, India, Remote sensing 3 2023 86 11 10 Environmental and Resource Economics 605 644 R40 H42 O33 Q53 http://link.springer.com/10.1007/s10640-023-00805-2 text/html Abstract Luis Sarmiento luis.sarmiento@eiee.org Centro Euro-Mediterraneo Sui Cambiamenti Climatici (CMCC) Adam Nowakowski Bocconi University
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article A Bioeconomic Model of Non-profit and For-profit National Parks Integrating Locals in Biodiversity Conservation Abstract To achieve the conservation goals of national parks, involving locals in park operations provides a win/win approach for local development and wildlife management. However, while some bioeconomic studies examine the effectiveness of biodiversity conservation projects that employ locals, most ignore the direct involvement of local workers in national park operations. Moreover, the existing literature tends to assume that national parks are for-profit organizations, whereas they are generally non-profit entities. In this study, we develop a bioeconomic model to investigate the extent to which involving locals in tourism in a national park managed under two different styles of management (i.e., non-profit and for-profit agencies) influences wildlife conservation. We find certain conditions under which involving locals in national park operations can conserve wildlife. Under these conditions, if wildlife conservation does not reduce agricultural productivity, non-profit agencies raise the utility of locals and promote wildlife conservation more than for-profit agencies. Otherwise, non-profit agencies do not necessarily increase the utility of locals or improve conservation compared with for-profit agencies. In addition, we compare the equilibria under both types of agencies and show that they do not generally achieve the social optimum. Bioeconomic modeling, Biodiversity conservation, Local welfare, National park, Tourism 3 2023 86 11 7 Environmental and Resource Economics 509 532 http://link.springer.com/10.1007/s10640-023-00802-5 text/html Abstract Zijin Xie Keio University Ayumi Onuma onuma@econ.keio.ac.jp Keio University
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article Heterogeneous Impacts in Voluntary Agreements: A Changes-in-Changes Approach to the UK Climate Change Agreements Abstract The limited microeconometric evidence on the efficacy of environmental Negotiated Agreements (NAs) is an obstacle to both their introduction and effective design. We help fill this gap by providing evidence on the impact of the second Climate Change Agreements (CCAs) on business electricity consumption and employment. The CCAs are NAs offering a reduction on the Climate Change Levy (CCL), an energy consumption tax, in exchange for commitments to improve energy efficiency. We use the novel changes-in-changes method to account for heterogeneity in treatment effects. Our results indicate that the second CCAs yielded improved outcomes compared to the counterfactual of full CCL with an average reduction of − 4.81% in electricity consumption. They also reveal the importance of allowing for heterogeneity, as the impact on electricity consumption at the identified deciles varied between − 9.33 and 12.54%. This is a marked difference from the first CCAs which were found to increase consumption. The heterogeneity in treatment response is corroborated when extending the study to two large industrial sectors in the sample and when studying firms selecting differing target reporting methods. Confirming the findings from earlier studies of the first scheme, our results indicate a non-statistically significant reduction in employment, about − 4.6% on average, for the second CCAs. Voluntary agreements, Environmental tax, Environmental subsidies, Energy, Changes-in-changes, Climate Change Agreements 3 2023 86 11 2 Environmental and Resource Economics 345 379 Q48 Q58 H23 Q40 D22 http://link.springer.com/10.1007/s10640-023-00797-z text/html Abstract Kentaro Florian Mayr k.f.mayr@ucl.ac.uk University College London Energy Paolo Agnolucci University College London Institute for Sustainable Resources World Bank
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article Spillover Effects in Irrigated Agriculture from the Groundwater Commons Abstract This study examines irrigation spillover effects within the groundwater commons of the San Luis Valley in Colorado. We investigate the common pool competition predicted by a theoretical model of crop production through water-use intensity, acreage size choices, and production intensity among irrigators. By specifying Spatial Probit and regular Spatial Durbin Models, we empirically measure not only the effects of these choices on neighbors, but also the effect of other factors that affect water use and cultivation choices at neighboring farming units. For all three response variables, the results show that irrigators consider neighbors’ responses, with the strength of spatial dependency being highest for production intensity. Additionally, there are significant spillover effects from changes in key covariates, demonstrating the inadequacy of estimating direct effects only. For example, a one-foot increase in depth-to-water has both direct and indirect positive effects on water-use intensity, but the indirect effect constitutes over 81% of the total effect. Groundwater commons, Spatial externality, Irrigation, Spatial Durbin model, Spatial regression, Correlated random effects 3 2023 86 11 6 Environmental and Resource Economics 469 507 Q21 Q25 http://link.springer.com/10.1007/s10640-023-00801-6 text/html Abstract Godwin Kwabla Ekpe University of Pittsburgh at Bradford Anna A. Klis aklis@niu.edu Northern Illinois University
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article Individual Carbon Footprint Reduction: Evidence from Pro-environmental Users of a Carbon Calculator Abstract We provide the first estimates of how pro-environmental consumers reduce their total carbon footprint using a carbon calculator that covers all financial transactions. We use data from Swedish users of a carbon calculator that includes weekly estimates of users’ consumption-based carbon-equivalent emissions based on detailed financial statements, official registers, and self-reported lifestyle factors. The calculator is designed to induce behavioral change and gives users detailed information about their footprint. By using a robust difference-in-differences analysis with staggered adoption of the calculator, we estimate that users decrease their carbon footprint by around 10% in the first few weeks, but over the next few weeks, the reduction fades. Further analysis suggests that the carbon footprint reduction is driven by a combination of a shift from high- to low-emitting consumption categories and a temporary decrease in overall spending, and not by changes in any specific consumption category. Pro-environmental behavior, Carbon footprint, Consumer behavior 3 2023 86 11 5 Environmental and Resource Economics 433 467 D12 D91 Q5 http://link.springer.com/10.1007/s10640-023-00800-7 text/html Abstract Jakob Enlund jakob.enlund@lnu.se Linnaeus University David Andersson david.andersson@chalmers.se Chalmers University of Technology Fredrik Carlsson fredrik.carlsson@economics.gu.se University of Gothenburg
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article Incidental Adaptation: The Role of Non-climate Regulations Abstract When a non-climate institution, policy, or regulation corrects a pre-existing market failure that would be exacerbated by climate change, it may also incidentally induce climate adaptation. This regulation-induced adaptation can have large positive welfare effects. We develop a tractable analytical framework of a corrective regulation where the market failure interacts with climate, highlighting the mechanism of regulation-induced adaptation: reductions in the climate-exacerbated effects of pre-existing market failures. We demonstrate this empirically for the US from 1980 to 2013, showing that ambient ozone concentrations increase with rising temperatures, but that such increase is attenuated in counties that are out of attainment with the Clean Air Act’s ozone standards. Adaptation in nonattainment counties reduced the impact of a 1 °C increase in climate normal temperature on ozone concentration by 0.64 parts per billion, or about one-third of the total impact. Over half of that effect was induced by the standard, implying a regulation-induced welfare benefit of $412–471 million per year by mid-century under current warming projections. Climate change, Government regulations and policy, Clean Air Act, Regulation-induced adaptation, Ambient ozone concentration 3 2023 86 11 1 Environmental and Resource Economics 305 343 Q53 Q54 Q58 H23 K32 P48 D02 http://link.springer.com/10.1007/s10640-023-00793-3 text/html Abstract Antonio M. Bento abento@usc.edu University of Southern California National Bureau of Economic Research (NBER) Noah Miller nsmiller@usc.edu University of Southern California Mehreen Mookerjee mehreen.mookerjee@zu.ac.ae Zayed University Edson Severnini edsons@andrew.cmu.edu National Bureau of Economic Research (NBER) Carnegie Mellon University Institute of Labor Economics (IZA)
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article Inequitable Gains and Losses from Conservation in a Global Biodiversity Hotspot Abstract A billion rural people live near tropical forests. Urban populations need them for water, energy and timber. Global society benefits from climate regulation and knowledge embodied in tropical biodiversity. Ecosystem service valuations can incentivise conservation, but determining costs and benefits across multiple stakeholders and interacting services is complex and rarely attempted. We report on a 10-year study, unprecedented in detail and scope, to determine the monetary value implications of conserving forests and woodlands in Tanzania’s Eastern Arc Mountains. Across plausible ranges of carbon price, agricultural yield and discount rate, conservation delivers net global benefits (+US$8.2B present value, 20-year central estimate). Crucially, however, net outcomes diverge widely across stakeholder groups. International stakeholders gain most from conservation (+US$10.1B), while local-rural communities bear substantial net costs (-US$1.9B), with greater inequities for more biologically important forests. Other Tanzanian stakeholders experience conflicting incentives: tourism, drinking water and climate regulation encourage conservation (+US$72M); logging, fuelwood and management costs encourage depletion (-US$148M). Substantial global investment in disaggregating and mitigating local costs (e.g., through boosting smallholder yields) is essential to equitably balance conservation and development objectives. Biodiversity hotspot, Distribution analysis, Opportunity costs, Conservation, Cost-benefit analysis, Tanzania 3 2023 86 11 3 Environmental and Resource Economics 381 405 http://link.springer.com/10.1007/s10640-023-00798-y text/html Abstract Philip J. Platts University of York BeZero Carbon Ltd Marije Schaafsma m.schaafsma@vu.nl VU University Amsterdam R. Kerry Turner University of East Anglia Neil D. Burgess UN Environment Programme World Conservation Monitoring Centre (UNEP-WCMC) University of Copenhagen University of Cambridge Brendan Fisher University of Vermont University of Vermont Boniface P. Mbilinyi Sokoine University of Agriculture Pantaleo K. T. Munishi Sokoine University of Agriculture Taylor H. Ricketts University of Vermont University of Vermont Ruth D. Swetnam Staffordshire University Antje Ahrends Royal Botanic Garden Edinburgh Biniam B. Ashagre Anglia Ruskin University Julian Bayliss Oxford Brookes University Roy E. Gereau Missouri Botanical Garden Jonathan M. H. Green Stockholm Environment Institute York, University of York Rhys E. Green University of Cambridge RSPB Centre for Conservation Science Lena Jeha Zoological Society London Simon L. Lewis University College London University of Leeds Rob Marchant University of York Andrew R. Marshall University of York University of the Sunshine Coast Flamingo Land Sian Morse-Jones Collingwood Environmental Planning Limited Shadrack Mwakalila University of Dar Es Salaam Marco A. Njana Tanzania Forest Services Agency Wildlife Conservation Society Deo D. Shirima Sokoine University of Agriculture National Carbon Monitoring Centre, Sokoine University of Agriculture Simon Willcock Bangor University Rothamsted Research, West Common Andrew Balmford apb12@cam.ac.uk University of Cambridge
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article How Much Will Climate Change Reduce Productivity in a High-Technology Supply Chain? Evidence from Silicon Wafer Manufacturing Abstract The frequency of hot days in much of the world is increasing. What is the impact of high temperatures on productivity? Can technology-based adaptation mitigate such effects of climate change? We provide some answers to these questions by examining how high outdoor temperatures affect a high-technology, precision manufacturing setting. Exploiting individual-level data on the quantity and quality of work done across 35, 190 worker-shifts in a leading NYSE-listed silicon wafer maker in China, we evidence a negative effect of outdoor heat on productivity. The effects are large: in our preferred linear specification, an increase in wet bulb temperature of $$10\, ^{\circ }$$ 10 ∘ C causes a reduction in output of 8.3%. Temperature effects exist even though the manufacturer’s work-spaces are indoors and protected by high-quality climate control systems. Results are not driven by extreme weather events and are robust to alternative modelling approaches. They illustrate the potential future adverse economic effects of climate change in most of the industrialised world. Climate impacts, Adaptation, Productivity 3 2023 86 11 8 Environmental and Resource Economics 533 563 http://link.springer.com/10.1007/s10640-023-00803-4 text/html Abstract Jingnan Chen University of Exeter Miguel A. Fonseca M.A.Fonseca@exeter.ac.uk University of Exeter Universidade do Minho Anthony Heyes University of Birmingham Jie Yang Guilin University of Electronic Technology Xiaohui Zhang University of Exeter
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article Trade, Transport Emissions and Multimarket Collusion with Border Adjustments Abstract We analyze the impact of border adjustment policies on trade, pollution and welfare when firms, located in different countries, sell differentiated products in geographically-separated markets. Transportation of goods not only incurs a cost, but also generates emissions. We compare outcomes under competition and multimarket collusion. Cooperating governments can implement the first-best using appropriate border adjustments regardless of the market structure. When governments set policies non-cooperatively, the border adjustment tariffs exceed the marginal damage from emissions. While it is expected that colluding firms would reduce trade flows relative to competition, trade increases under collusion, resulting in higher welfare. This highlights the possibility of allowing firms to collude and taxing (part of) their profits, which can be redistributed to citizens or used to mitigate the effects of pollution. Transport pollution, Cross-hauling, Strategic government policy, Border adjustments, Multimarket collusion, Differentiated goods 3 2023 86 11 4 Environmental and Resource Economics 407 432 Q56 F18 H23 L13 L41 D43 http://link.springer.com/10.1007/s10640-023-00799-x text/html Abstract Shiva Sikdar shivasikdar@gmail.com Keele University
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article EAERE Award for the Best Paper Published in Environmental and Resource Economics During 2022 3 2023 86 11 13 Environmental and Resource Economics 713 715 http://link.springer.com/10.1007/s10640-023-00808-z text/html Abstract Simone Borghesi simone.borghesi@unisi.it University of Siena European University Institute Alistair Munro alistair-munro@grips.ac.jp National Graduate Institute for Policy Studies (GRIPS) Joëlle Noailly joelle.noailly@graduateinstitute.ch Vrije Universiteit Amsterdam Geneva Graduate Institute
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article Landfill Scarcity and the Cost of Waste Disposal Abstract This study examines the effect of landfill scarcity on the cost of municipal solid waste (MSW) disposal. We find the evidence that a decrease in the remaining capacity of landfill sites increases the unit cost of waste disposal. We also find that landfill scarcity impacts intermediate disposal costs (the cost of MSW disposal methods other than landfill disposal) more than landfill disposal costs. Based on the results of previous studies that estimated the external costs of landfills, the cost reduction effect of having a landfill site may overwhelm the external costs. Our results demonstrate that having its own landfill site not only provides the final recipient of MSW but also reduces the cost of MSW disposal. The latter type of benefit has been overlooked in previous studies on MSW disposal. Landfill, Municipal solid waste, Resource scarcity, Waste disposal cost 3 2024 87 3 3 Environmental and Resource Economics 629 653 http://link.springer.com/10.1007/s10640-023-00829-8 text/html Abstract Daisuke Ichinose d.ichinose@rikkyo.ac.jp Rikkyo University
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article If You Build It, Will They Compost? The Effects of Municipal Composting Services on Household Waste Disposal and Landfill Emissions Abstract Composting food and garden waste generates less methane emissions than landfills, yet most organic waste is landfilled. This paper examines how local government provision of composting services affects the amount of household waste going to landfills. Using quasi-random adoption of curbside organics collection by local councils in Australia, we find that curbside organics collection diverted one-fourth of household waste from landfill to composting. We find no evidence that organics collection altered total household waste and weak evidence of a small negative spillover effect on dry-recycling waste. Our results suggest curbside organics collection could reduce emissions from landfills by 6–26%. Food and garden waste, Curbside waste collection, Composting, Recycling, Landfills, Methane emissions, Event study 3 2024 87 3 7 Environmental and Resource Economics 761 789 Q53 Q58 Q18 http://link.springer.com/10.1007/s10640-023-00834-x text/html Abstract Lihini Silva lihini.desilva@monash.edu Monash University Rebecca L. C. Taylor rltaylor@illinois.edu University of Illinois Urbana-Champaign
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article Factors Influencing Customer Participation in a Program to Replace Lead Pipes for Drinking Water Abstract Many public water systems are struggling to locate and replace lead pipes that distribute drinking water across the United States. This study investigates factors associated with customer participation in a voluntary lead service line (LSL) inspection and replacement program. It also uses quasi-experimental and experimental methods to evaluate the causal impacts of two grant programs that subsidized homeowner replacement costs on LSL program participation. LSLs were more prevalent in areas with a higher concentration of older housing stock, Black and Hispanic residents, renters, and lower property values. Owner-occupied and higher valued properties were more likely to participate in the LSL program. Results from the two grant program evaluations suggest that subsidies for low-income homeowners to cover LSL replacement costs can significantly boost participation, but only when the programs are well publicized and easy to access. Even then, there was still significant non-participation among properties with confirmed LSLs. Lead exposure, Lead service lines, Drinking water, Field experiment, Quasi-experiment, Environmental justice 3 2024 87 3 8 Environmental and Resource Economics 791 832 http://link.springer.com/10.1007/s10640-023-00836-9 text/html Abstract Heather Klemick klemick.heather@epa.gov U.S. EPA, Office of Policy, National Center for Environmental Economics Ann Wolverton U.S. EPA, Office of Policy, National Center for Environmental Economics Bryan Parthum U.S. EPA, Office of Policy, National Center for Environmental Economics Kristin Epstein CDM Smith Sandra Kutzing CDM Smith Sarah Armstrong Accenture Federal Services
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article Discounting the Future: On Climate Change, Ambiguity Aversion and Epstein–Zin Preferences Abstract We show that ambiguity aversion and deviations from standard expected time separable utility have a major impact on estimates of the willingness to pay to avoid future climate change risk. We propose a relatively standard integrated climate/economy model but add stochastic climate disasters. The model yields closed form solutions up to solving an integral, and therefore does not suffer from the curse of dimensionality of most numerical climate/economy models. We analyze the impact of substitution preferences, risk aversion (known probabilities), and ambiguity aversion (unknown probabilities) on the social cost of carbon. Introducing ambiguity aversion leads to two offsetting effects on the social cost of carbon: a positive direct effect and a negative effect through discounting. Our numerical results show that for reasonable calibrations, the direct effect dominates the discount rate impact, so ambiguity aversion gives substantially higher estimates of the social cost of carbon. Social cost of carbon, Ambiguity aversion, Epstein–Zin preferences, Climate change Q51, Q54, G12, G13 3 2024 87 3 5 Environmental and Resource Economics 683 730 http://link.springer.com/10.1007/s10640-023-00832-z text/html Abstract Stan Olijslagers s.w.j.olijslagers@cpb.nl CPB Netherlands Bureau for Economic Policy Analysis Sweder Wijnbergen s.j.g.vanwijnbergen@uva.nl University of Amsterdam
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article Relative Price Changes of Ecosystem Services: Evidence from Germany Abstract Discounting future costs and benefits is a crucial yet contentious practice in the appraisal of long-term public projects with environmental consequences. The standard approach typically neglects that ecosystem services are not easily substitutable with market goods and often exhibit considerably lower growth rates. Theory has shown that we should either apply differentiated discount rates, such as a lower environmental discount rate, or account for increases in relative scarcity by uplifting environmental values. Some governments already integrate this into their guidance, but empirical evidence is scarce. We provide first comprehensive country-specific evidence, taking Germany as a case study. We estimate growth rates of 15 ecosystem services and the degree of limited substitutability based on a meta-analysis of 36 willingness to pay studies in Germany. We find that the relative price of ecosystem services has increased by more than four percent per year in recent decades. Heterogeneity analyses suggest that relative price changes are most substantial for regulating ecosystem services. Our findings underscore the importance of considering relative price adjustments in governmental project appraisal and environmental-economic accounting. Cost–benefit analysis, Discounting, Ecosystem services, Growth, Substitutability, Relative prices, Willingness to pay 3 2024 87 3 9 Environmental and Resource Economics 833 880 D61 H43 Q51 Q54 Q58 http://link.springer.com/10.1007/s10640-023-00838-7 text/html Abstract Jonas Heckenhahn Jonas.Heckenhahn@ruhr-uni-bochum.de Ruhr University Bochum Moritz A. Drupp Moritz.Drupp@uni-hamburg.de University of Hamburg CESifo
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article External Monitoring and Enforcement and the Success of Collective Property Rights Regimes Abstract In this paper, we analyze how public monitoring and enforcement (M&E) efforts affect the success of a collective property right. We develop a bioeconomic model to generate several theoretical predictions, which we test empirically by assembling and analyzing novel data on public patrolling and fishing activity in the Chilean abalone fishery. Consistent with our model, we find robust evidence that patrolling increases abalone stocks and harvest for nearby fishers’ organizations. In our preferred (conservative) specifications, a 10% increase in patrolling increases stock density by 0.95% and harvest by 1.2%, which translates roughly to an increase in annual revenues of 6770 USD on average within a port captainship jurisdiction. Our work provides new empirical evidence on the determinants of success for collective property rights regimes, revealing the pivotal role that public M&E can play in helping sustain these institutions. Common pool resources, Collective property right, Monitoring and enforcement, Territorial use rights for fishing 3 2024 87 3 2 Environmental and Resource Economics 605 628 Q22 K42 D71 http://link.springer.com/10.1007/s10640-023-00828-9 text/html Abstract Felipe J. Quezada University of California Santa Cruz Nathan W. Chan nchan@umass.edu University of Massachusetts Amherst
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article The Macroeconomic Impact of Global and Country-Specific Climate Risk Abstract This paper examines the impact of climate risk on macroeconomic activity for thirty countries using over a century of panel time series data. The key innovation of our paper is to use a factor stochastic volatility approach to decompose climate change into global and country-specific climate risk and to consider their distinct impact upon macroeconomic activity. To allow for country heterogeneity, we also differentiate the impact of climate risk upon advanced and emerging economies. While the existing literature has focused on country based climate risk shocks, our results suggest idiosyncratic or country-specific climate risk shocks are relatively unimportant. Global climate risk, on the other hand, has a negative and relatively more important impact on macroeconomic activity. In particular, we find that both advanced and emerging countries are adversely impacted by global climate risk shocks. Global climate risk, Factor stochastic volatility model, Macroeconomic activity, Bayesian panel VAR 3 2024 87 3 4 Environmental and Resource Economics 655 682 C13 E00 Q56 http://link.springer.com/10.1007/s10640-023-00831-0 text/html Abstract Joseph P. Byrne joseph.byrne@strath.ac.uk University of Strathclyde Prince Asare Vitenu-Sackey prince.vitenu-sackey@strath.ac.uk University of Strathclyde
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article The Dutch disease revisited: consistency of theory and evidence Abstract The Dutch disease literature reveals several gaps between empirical evidence and theoretical predictions. To bridge such gaps, I develop a model that accounts for uneven spillovers of technological progress from the resource sector to other domestic sectors. I then employ a dynamic panel approach to align the theory with the data. I find that the real exchange rate appreciation resulting from a resource boom (i.e., the spending channel) is more pronounced in resource-poor countries than in resource-rich countries. Additionally, the resource movement channel exhibits differences between resource-rich and resource-poor countries. In resource-rich countries, a resource boom reduces the growth rate in the manufacturing sector more than in the service sector, leading to a decrease in relative sectoral output and a slowdown in economic growth. On the other hand, in resource-poor countries, a resource boom accelerates the growth of the manufacturing sector and decelerates the growth of the service sector, resulting in an increase in relative sectoral output and economic growth. Resource boom, Dutch disease, Real exchange rate, Sectoral output, Economic growth, Resource-rich and poor countries 3 2024 87 3 1 Environmental and Resource Economics 553 603 C33 O11 O13 O15 http://link.springer.com/10.1007/s10640-023-00827-w text/html Abstract Arsham Reisinezhad arsham.reisinezhad@essex.ac.uk arsham.reisinezhad@gmail.com University of Essex
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article Unsynchronised Legislation and Unintended Pollution: Estimating Regulation-Induced Substitution in China Abstract The chronology of China’s legislation on controlling air pollution and water pollution is not equivalent, and firms may change their pollution inputs under environmental regulations. By examining a nationwide policy, China’s Key Cities for Air Pollution Control, which aims to mitigate air pollution emissions, we find that although firms in regulated cities do manage to reduce their level of air pollution, they do so by installing “end-of-pipe” abatement equipment, which consumes a large amount of water and eventually increases water pollution. Thus, the ratio of water to air emissions increases by up to 15%. As pollution transfers from the air to water, this regulation-induced pollution substitution hinders the improvement of the overall environmental quality. Our results suggest that when evaluating the effectiveness of environmental regulation, abatement methods, especially “end-of-pipe” equipment, should also be taken into account to consider the pollution substitution effect. Environmental regulation, Firm’s pollution emission, Pollution substitution 3 2024 87 3 6 Environmental and Resource Economics 731 760 D22 Q53 Q58 http://link.springer.com/10.1007/s10640-023-00833-y text/html Abstract Wenjie Luo luowenjie888@qq.com The Hong Kong University of Science and Technology (Guangzhou) Xunyong Xiang 16xyxiang@jnu.edu.cn Jinan University
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article International Environmental Agreement and Trade in Environmental Goods: The Case of Kyoto Protocol Abstract The Kyoto Protocol has received much criticism for its effectiveness as well as the spillover effect (i.e. carbon leakage and competitiveness loss). This paper provides the first evidence for the effect of the Kyoto Protocol on the bilateral trade in environmental goods, which can mitigate and prevent environmental damage. Using the generalized synthetic control method, I construct the counterfactual of trading pairs with Kyoto commitment and show that the export of environmental goods by Kyoto countries increases by 29–30% after the protocol enters into force. The paper further examines the top exporters (Germany and Japan) individually and also reports positive effects. Technology transfer induced by project-based mechanisms under the Kyoto Protocol, in particular Clean Development Mechanism, is found to be the potential driving force. Environmental goods, Generalized synthetic control, Gravity model, International environmental agreement, Kyoto Protocol 2 2022 83 10 4 Environmental and Resource Economics 341 379 F14 Q56 http://link.springer.com/10.1007/s10640-021-00625-2 text/html Abstract Trang My Tran mytrang.tran@monash.edu Monash University Malaysia
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article Liability Structure and Carbon Emissions Abatement: Evidence from Chinese Manufacturing Enterprises Abstract As it is known that the linkage between financial performance and environmental performance of enterprises has not obtained conclusive results, and the role of liability and its structure have not been considered yet. In view of these gaps, this paper employed the data of Chinese manufacturing firms from 2008 to 2011, to examine the impact of liability structure on enterprises’ carbon emissions abatement. The results manifest that both the relative and absolute proportions of long-term liabilities have a significant negative effect on the level value and growth rate of enterprise carbon emissions in China. Heterogeneity analysis demonstrates that enterprises in high energy consumption group have higher total carbon emissions and growth rate compared with enterprises in low and middle energy consumption groups. For enterprises of different ownership, the level of private-owned enterprises is higher and the growth rate is lower. The findings imply that policy makers should not adopt a one-size-fits-all policies to reduce firm carbon emissions. Liability structure, Long-term liability, Relative proportion, Absolute proportion, Carbon emissions abatement 2 2022 83 10 8 Environmental and Resource Economics 481 507 C23 O13 P28 Q56 http://link.springer.com/10.1007/s10640-022-00649-2 text/html Abstract Yufeng Chen chenyufeng@gmail.com Zhejiang Gongshang University Capital University of Economics and Business Zhitao Zhu Zhejiang Gongshang University
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article The Zonal and Seasonal CO2 Marginal Emissions Factors for the Italian Power Market Abstract This paper estimates the seasonal and zonal $${\mathrm{CO}}_{2}$$ CO 2 marginal emissions factors (MEFs) from electricity production in the Italian electricity system. The inclusion of the zonal configuration of the Italian wholesale power market leads to a complete measurement of marginal emission factors which takes into account the heterogeneous distribution of RES power plants, their penetration rate and their variability within the zonal power generation mix. This article relies on a flexible econometric approach that includes the fractional cointegration methodology to incorporate the typical features of long-memory processes into the estimation of MEFs. We find high variability in annual MEFs estimated at the zonal level. Sardinia reports the highest MEF (0.7189 $${\mathrm{tCO}}_{2}$$ tCO 2 /MWh), followed by the Center South (0.7022 $${\mathrm{tCO}}_{2}$$ tCO 2 /MWh), the Center North (0.4236 $${\mathrm{tCO}}_{2}$$ tCO 2 /MWh), the North (0.2018 $${\mathrm{tCO}}_{2}$$ tCO 2 /MWh) and Sicily (0.146 $${\mathrm{tCO}}_{2}$$ tCO 2 /MWh). The seasonal analysis also shows a large variability of MEFs in each zone across time. The heterogeneity of results leads us to recommend that policymakers consider the zonal configuration of the power market and the large seasonal variability related to carbon emissions and electricity generation when designing incentives for renewable energy sources expansion and for achieving emission reduction targets. Decarbonization, Electricity price, Fractional cointegration, Marginal emission factor (MEF), Renewable energy sources (RES) 2 2022 83 10 5 Environmental and Resource Economics 381 411 P18 Q41 Q42 Q51 C22 C32 C63 http://link.springer.com/10.1007/s10640-021-00567-9 text/html Abstract Filippo Beltrami filippo.beltrami@univr.it University of Verona Fulvio Fontini fulvio.fontini@unipd.it University of Padova Monica Giulietti M.Giulietti@lboro.ac.uk University of Loughborough Luigi Grossi luigi.grossi@univr.it University of Verona
oai:RePEc:kap:enreec:v:83:y:2022:i:2:d:10.1007_s10640-021-00619-02022-09-27RePEc:kap:enreec
article Stepwise Investment in Circular Plastics Under the Presence of Policy Uncertainty Abstract The use of recycled plastics is critical in the transition to a circular economy. However, for certain types of plastics, the recycling process is economically unviable. Government-driven incentives, such as a policy imposing a minimum fraction of recycled plastics to be used in production processes of plastic goods, offer an exit from this impasse. In this paper, we study how a firm’s investment behavior is affected by policy uncertainty governing the introduction of such a regulatory measure. Specifically, we adopt a real option approach to study the two-step investment of a firm in its transition to the use of recycled plastics. A clear trade-off can be distinguished. On the one hand, investing early causes unnecessary profit losses before the policy implementation. On the other hand, a lack of investment leads to market exclusion after the policy implementation. For our case study on the use of recycled polyethylene, we find that firms plan their first investment step, so that the timing of the second investment step approximates their projection on the policy implementation time. Moreover, we find that the firm’s value is maximized when the capacity of the first investment is smaller than the capacity of the second investment. Circular economy, Real option analysis, Recycled plastics, Policy uncertainty, Public pressure, Stepwise investment 2 2022 83 10 6 Environmental and Resource Economics 413 443 http://link.springer.com/10.1007/s10640-021-00619-0 text/html Abstract Loïc Weerdt loic.deweerdt@uantwerpen.be loic.deweerdt@princeton.edu Princeton University University of Antwerp Tine Compernolle tine.compernolle@uantwerpen.be University of Antwerp Royal Belgian Institute of Natural Sciences Verena Hagspiel verena.hagspiel@ntnu.no Norwegian University of Science and Technology Peter Kort Kort@tilburguniversity.edu Tilburg University Carlos Oliveira carlosoliveira@iseg.ulisboa.pt Universidade de Lisboa and REM
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article The Role of Industrial and Market Symbiosis in Stimulating CO2 Emission Reductions Abstract An increasing concern for climate change puts pressure on industrial firms to achieve carbon emission reductions. These could be realized through cooperation among firms in industrial chains, which leads to industrial symbiosis. By taking a real options approach, we make the timing component of the investment decisions explicit. This is important in assessing the impact of carbon-reducing investment over a specific time-span. We show that a joint venture between a CO2 emitting firm and a firm that can use the CO2 will result in a higher probability that an investment in CO2 capture will take place within a specific time period, which reduces the amount of CO2 emitted substantially. We also show that, in addition to industrial symbiosis, cooperation between firms can benefit from “market symbiosis” as well, in the sense that investments are more likely to take place in markets that are positively correlated. This is an important result, given that the EU has set binding targets to its Member States for reducing their emissions. Real options, Two-factor uncertainty, Industrial symbiosis, Correlation, CO2 emission reduction 1 2022 83 9 8 Environmental and Resource Economics 171 197 http://link.springer.com/10.1007/s10640-021-00616-3 text/html Abstract Tine Compernolle tine.compernolle@uantwerpen.be University of Antwerp Royal Belgian Institute of Natural Sciences Jacco J. J. Thijssen University of York
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article The Economic and Climate Value of Flexibility in Green Energy Markets Abstract This paper examines how enhanced flexibility across space, time, and a regulatory dimension affects the economic costs and CO $$_2$$ 2 emissions of integrating large shares of intermittent renewable energy from wind and solar. We develop a numerical model which resolves hourly dispatch and investment choices among heterogeneous energy technologies and natural resources in interconnected wholesale electricity markets, cross-country trade (spatial flexibility), energy storage (temporal flexibility), and tradable green quotas (regulatory flexibility). Taking the model to the data for the case of Europe’s system of interconnected electricity markets, we find that the appropriate combination of flexibility can bring about substantial gains in economic efficiency, reduce costs (up to 13.8%) and lower CO $$_2$$ 2 emissions (up to 51.2%). Regulatory flexibility is necessary to realize most of the maximum possible benefits. We also find that gains from increased flexibility are unevenly distributed and that some countries incur welfare losses. 2 2022 83 10 2 Environmental and Resource Economics 289 312 http://link.springer.com/10.1007/s10640-021-00605-6 text/html Abstract Jan Abrell jan.abrell@zew.de ZEW Leibniz Centre for European Economic Research Sebastian Rausch sebastian.rausch@zew.de ZEW Leibniz Centre for European Economic Research Heidelberg University Centre for Energy Policy and Economics at ETH Zurich Joint Program on the Science and Policy of Global Change at Massachusetts Institute of Technology Clemens Streitberger c.streitberger@gmail.com Department of Management, Technology and Economics
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article Sustainable Power Generation in Europe: A Panel Data Analysis of the Effects of Market and Environmental Regulations Abstract Climate change and greenhouse gas emissions have become increasingly more pressing environmental concerns in European policy agenda. Environmental energy efficiency (EEE) has been identified as one of the main tools for fostering the sustainable energy transition. The current policy debate on the organization of energy markets focuses both on promoting higher market efficiency and environmentally sustainable production. Consequently, in this study we analyze the impact of market and environmental regulatory tools on EEE for the electricity sector of European countries using an innovative econometric technique. We conduct an empirical analysis of the dynamics of the technical and environmental performance of the electricity sectors of 18 EU countries during 2006–2014. The contribution of the present study to the literature is threefold. First, we propose a redefinition of the technology set and a new index for the productivity change feasible and consistent with the presence of bad output. Second, we decompose the productivity changes in the two main components (the efficiency gains and the technological progress), and we measure the co-joint effects of the stringency of both market and environmental policies on these two main drivers of EEE. Third, we model country heterogeneity using a Bayesian shrinkage estimator to avoid the estimates’ poolability assumption. Results suggest that the dynamic of the effects of regulations on EEE depend on the policy instrument used. Finally, the country-specific results highlight the effects of the interactions among different policy instruments and they can be used by policy makers to balance the stringency of market regulation according to the level of environmental regulation. Electricity industry, Regulation stringency, Malmquist Luenberger index, Bayesian shrinkage estimator 2 2022 83 10 7 Environmental and Resource Economics 445 479 C21 L51 L94 O47 Q58 http://link.springer.com/10.1007/s10640-021-00631-4 text/html Abstract Simona Bigerna simona.bigerna@unipg.it University of Perugia Maria Chiara D’Errico University of Perugia Paolo Polinori University of Perugia
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article Stranded Assets: How Policy Uncertainty affects Capital, Growth, and the Environment Abstract The paper considers stochastic environmental policy and its effects on the environment, portfolio composition, and economic growth. Capital accumulation causes pollution which is reduced by private green services and public abatement. The government subsidizes green services and taxes dirty capital albeit at a rate which may become random, causing unexpected capital write-offs. Tax jumps depend on natural degradation and environmental activism. We derive how uncertainty and political activism affect the risk premia for investors. We analyze the incentives for firms to increase the greenness of production in order to reduce political uncertainty. Stochastic taxation is shown to act as a substitute for green subsidies when uncertainty decreases in the ratio of green services to capital and agents use their green activities strategically. Tax uncertainty may trigger precautionary savings, causing additional growth and enhanced environmental deterioration. Policy uncertainty, Stranded assets, Private abatement, Stochastic growth 2 2022 83 10 1 Environmental and Resource Economics 261 288 Q52 Q54 O10 http://link.springer.com/10.1007/s10640-021-00632-3 text/html Abstract Lucas Bretschger lbretschger@ethz.ch Center of Economic Research at ETH Zurich Susanne Soretz soretz@uni-greifswald.de University of Greifswald
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article Temperature Variability and the Macroeconomy: A World Tour Abstract This paper uses historical monthly temperature level data for a panel of 114 countries to identify the effects of within year temperature level variability on productivity growth in five different macro regions, i.e., (1) Africa, (2) Asia, (3) Europe, (4) North America and (5) South America. We find two primary results. First, higher intra-annual temperature variability reduces (increases) productivity in Europe and North America (Asia). Second, higher intra-annual temperature variability has no significant effects on productivity in Africa and South America. Additional empirical tests indicate also the following: (1) rising intra-annual temperature variability reduces productivity (even thought less significantly)in both tropical and non-tropical regions, (2) inter-annual temperature variability reduces (increases) productivity in North America (Europe) and (3) winter and summer inter-annual temperature variability generates a drop in productivity in both Europe and North America. Taken together, these findings indicate that temperature variability shocks tend to have stronger adverse economic effects among richer economies. In a production economy featuring long-run productivity and temperature volatility shocks, we quantify these negative impacts and find welfare losses of 2.9% (1%) in Europe (North America). Temperature variability, Productivity growth, “Macro-regions”, Welfare 1 2022 83 9 10 Environmental and Resource Economics 221 259 E32 R13 Q50 Q51 Q54 http://link.springer.com/10.1007/s10640-021-00579-5 text/html Abstract Michael Donadelli michael.donadelli@unibs.it The University of Brescia Marcus Jüppner marcus.jueppner@bundesbank.de Goethe University Frankfurt Sergio Vergalli sergio.vergalli@unibs.it The University of Brescia
oai:RePEc:kap:enreec:v:83:y:2022:i:1:d:10.1007_s10640-022-00652-72022-09-27RePEc:kap:enreec
article The Net Zero Challenge for Firms’ Competitiveness Abstract The European Union (EU) is planning to become carbon neutral by mid-century. This bold objective might have far-reaching consequences for the region capacity to remain cost-competitive, at least in the short term. Until now the decarbonization policies (e.g. ETS and renewable support) meant higher energy prices paid by households and firms: boldest targets will probably, at least in the short and medium-term, further out pressure on energy prices. To explore the impact of climate policies on European firms’competitiveness, we extend the standard analysis that links input costs and competitiveness including a Unit Energy Cost (UEC) measure. We study the UEC dynamics in different countries and industries, assessing its main drivers (prices, energy intensity, sector composition). Modelling the relationship between firms’ foreign sales and the UEC in a gravity model setup, we find that an increase in UECs reduces bilateral exports; euro-area countries show the largest negative effects. Our results strengthen the case for pursuing a stronger integration of European energy markets in order to avoid that the ambitious long-term European decarbonization targets penalize the European manufacturers. It is also important to establish a global “carbon”level playing field such as a EU-level carbon border adjustment, or other form of EU low-carbon exports support. We finally suggest to use some energy cost indicator in monitoring country competitiveness, as it happens for ULC, for example adding UEC to the Countries’ MIP prepared by the European Commission. Firms’ costs, Energy, Competitiveness, Decarbonization, EMU 1 2022 83 9 5 Environmental and Resource Economics 85 113 C53 D24 Q41 http://link.springer.com/10.1007/s10640-022-00652-7 text/html Abstract Ivan Faiella ivan.faiella@bancaditalia.it Banca d’Italia Alessandro Mistretta alessandro.mistretta@bancaditalia.it Banca d’Italia
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article Vertical fiscal imbalance and energy intensity in China Abstract The effective evaluation of the factors of energy intensity (EI) at the system level has become an engaging topic in the high-quality development of the economy. However, none of the existing studies have explored the relationship between vertical fiscal imbalance (VFI) and EI systematically and deeply. In this work, Chinese provincial panel data for the period of 1998–2017 are used to analyze the influence of VFI on EI by using the spatial Durbin model. Findings demonstrate an evident spatial correlation for the effect of VFI on EI, indicating that EI in local and surrounding regions can increase as VFI improves. Results are tested for robustness using different methods. Findings further show that VFI has a positive effect on EI by improving intergovernmental fiscal transfers and hindering technological innovation. The findings of this work could help the central and provincial governments of China reduce EI problems through fiscal methods. Vertical fiscal imbalance, Energy intensity, Spatial Durbin model, Chinese provinces 2 2022 83 10 9 Environmental and Resource Economics 509 526 http://link.springer.com/10.1007/s10640-022-00714-w text/html Abstract Liangliang Liu liangliu@nufe.edu.cn Nanjing University of Finance & Economics Wenqing Zhang zwq1120@mail.ustc.edu.cn University of Science and Technology of China
oai:RePEc:kap:enreec:v:83:y:2022:i:1:d:10.1007_s10640-021-00593-72022-09-27RePEc:kap:enreec
article Corporate Emissions-Trading Behaviour During the First Decade of the EU ETS Abstract This study analyses factors related to allowance-trading behaviour for the first ten years of the existence of the European Union Emissions Trading System (EU ETS). Our empirical analysis employs a dataset that combines information on trading activities for more than 6000 companies with company characteristics. Indicators of trading activity include the volume and the number of transactions as well as the usage of intermediaries and of derivatives markets. For 2005–2014 and for the individual trading periods, we find that trading behaviour is related to the size of a company, its net position (the difference between free allocations and verified emissions), its sector affiliation, productivity, and location. We also find evidence that trading-related transaction costs affect trading activity in the EU ETS in all trading periods. Our results further suggest that net buyers (companies whose verified emissions exceed free allocations in a given year) are more likely to participate in emissions trading and to trade at higher volumes than net sellers are. We explain this asymmetry in behaviour—which might lead to a violation of Coase’s independence property—by potential asymmetries in the actual or perceived opportunity costs of holding allowances between net sellers and net buyers. Climate policy, Emissions trading, EU ETS, Transaction behaviour, Transaction costs 1 2022 83 9 4 Environmental and Resource Economics 47 83 http://link.springer.com/10.1007/s10640-021-00593-7 text/html Abstract Jan Abrell ZEW-Leibniz Centre for European Economic Research Johanna Cludius Oeko-Institut Sascha Lehmann Fraunhofer Institute for Systems and Innovation Research Joachim Schleich joachim.schleich@grenoble-em.com Fraunhofer Institute for Systems and Innovation Research Grenoble Ecole de Management Virginia Tech University Regina Betz Zurich University of Applied Sciences
oai:RePEc:kap:enreec:v:83:y:2022:i:1:d:10.1007_s10640-022-00705-x2022-09-27RePEc:kap:enreec
article The International Dimension of the EU Emissions Trading System: Bringing the Pieces Together Abstract We analyse the international dimension of the EU Emissions Trading System (EU ETS) over the past two decades and in the foreseeable future by reviewing facts and economic theory. The facts mainly concern the international climate change regime and the EU’s relevant experience in international cooperation. Club theory shows how incentives can be created for cooperation on climate mitigation. The linkage of the EU ETS to the Kyoto flexible mechanisms had mixed results: it promoted emissions trading abroad, but the inflow of credits into the EU ETS added to a large market surplus and the environmental integrity of certain credits was problematic. Looking ahead, the ability of the EU ETS to reduce foreign emissions may grow. Key will be whether competitiveness and distributional effects are successfully addressed. The Carbon Border Adjustment Mechanism might help the EU reduce the risk of carbon leakage while incentivising emission reductions in countries exporting to the EU. The EU’s focus on reducing domestic emissions only, suggests we will probably not see new international linkages this decade. However, it cannot be excluded that the EU will revisit its decision and relax the domestic constraint. EU ETS, Emissions trading, International dimension, International carbon market, Climate clubs 1 2022 83 9 3 Environmental and Resource Economics 23 46 http://link.springer.com/10.1007/s10640-022-00705-x text/html Abstract Stefano F. Verde stefano.verde@unisi.it University of Siena Simone Borghesi European University Institute University of Siena
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article Adoption Gaps of Environmental Adaptation Technologies with Public Effects Abstract As the Intergovernmental Panel on Climate Change (2018) testifies, the world is a long way from halting climate change, let alone reverting it. The existence of adaptation and mitigation technologies did not prove sufficient, their adoption being respectively faulted or hindered by the presence of externalities. In this work, we study how externalities, whether positive or negative, lead the system away from Pareto-dominant (social optimum) states, towards Pareto-dominated ones. We show that adoption gaps, i.e. differences between socially optimum vs current adoption shares, of both (mal)adaptation and mitigation technologies are caused by the externalities emitted. In particular, over-adoption may occur for maladaptive technologies, whereas under-adoption may occur in case of mitigation. We employ a model with two regions at different stages of development and also derive relevant considerations on possible counterproductive effects of green policies and environmental dumping. Maladaptation, Mitigation, Externalities, Environmental dumping 2 2022 83 10 3 Environmental and Resource Economics 313 339 C70 D62 O13 O40 Q20 http://link.springer.com/10.1007/s10640-021-00561-1 text/html Abstract Angelo Antoci antoci@uniss.it University of Sassari Simone Borghesi University of Siena European University Institute Giulio Galdi European University Institute Sergio Vergalli University of Brescia Fondazione Eni Enrico Mattei (FEEM)
oai:RePEc:kap:enreec:v:83:y:2022:i:1:d:10.1007_s10640-021-00606-52022-09-27RePEc:kap:enreec
article Preventing Environmental Disasters in Investment under Uncertainty Abstract The paper considers a firm that has the option to invest in a project with an unknown profitability, which is affected by general market uncertainty. The project has the adverse effect that it can cause environmental damage. In case the firm has the option to undertake preventive investment at the time of market entry, we get that preventive investment is significant when (i) the project revenue is large, (ii) the environmental incidents potentially cause a huge reduction of firm value, and (iii) when preventive investment substantially decreases the probability of environmental damage occurrence. The optimality of such a preventive investment results in a significant delay of the project investment. When the firm has the possibility to invest in the project first and do the preventive investment later, this will accelerate the project investment and will result in a larger preventive investment when it indeed will decide to do that one later. Preventive investment, Real options, Environmental risk 1 2022 83 9 9 Environmental and Resource Economics 199 220 http://link.springer.com/10.1007/s10640-021-00606-5 text/html Abstract Peter Kort Tilburg University University of Antwerp Maria Lavrutich maria.lavrutich@ntnu.no Norwegian University of Science and Technology Cláudia Nunes Instituto Superior Técnico Carlos Oliveira Universidade de Lisboa REM-Research in Economics and Mathematics, CEMAPRE
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article Economic Aspects of the Energy Transition Abstract I make three points relating to the transition from fossil fuels to non-carbon energy. One is that the economic cost of moving from fossil fuels to renewable energy in electricity generation is very low, and probably lower than many estimates of the economic benefits from this change—at least for the U.S. The second is that, if it were to be successful in moving the economy away from fossil fuels and from oil in particular, a carbon tax would have to be much great than generally believed, in the range of $400 per ton $$CO_{2}$$ C O 2 or above. Finally, decarbonization of the economy implies electrification, the replacement of fossil fuels by electricity in transportation, space heating and many other fields. Currently electricity is far too expensive for this to be politically realistic: this is because its price does not reflect its marginal cost but this plus a wide range of fixed costs that are recovered in the per kilowatt hour charge. If we are to electrify the economy then the price of electricity will need to be nearer to its marginal cost, which raises questions about the business models of utilities. Renewable energy, Energy transition, Carbon tax, Electricity prices, Energy storage 1 2022 83 9 2 Environmental and Resource Economics 5 21 http://link.springer.com/10.1007/s10640-022-00647-4 text/html Abstract Geoffrey Heal gmh1@columbia.edu Columbia University
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article The European Green Deal, Energy Transition and Decarbonization 1 2022 83 9 1 Environmental and Resource Economics 1 3 http://link.springer.com/10.1007/s10640-022-00726-6 text/html Abstract Simone Borghesi simone.borghesi@eui.eu University of Siena European University Institute Sergio Vergalli sergio.vergalli@unibs.it University of Brescia Fondazione Eni Enrico Mattei (FEEM)
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article Does a Carbon Tax Reduce CO2 Emissions? Evidence from British Columbia Abstract Using difference-in-differences, synthetic control, and introducing a new break-detection approach, I show that the introduction of North America’s first major carbon tax has reduced transportation emissions but not ‘yet’ led to large statistically significant reductions in aggregate CO2 emissions. Proposing a new method to assess policy based on breaks in difference-in-differences using machine learning, I demonstrate that neither carbon pricing nor trading schemes in other provinces are detected as large and statistically significant interventions. Instead, closures and efficiency-improvements in emission-intense industries in untaxed provinces have reduced emissions. Overall, the results show that existing carbon taxes (and prices) are likely too low to be effective in the time frame since their introduction. Carbon tax, CO2 emissions, Regulation, Break detection 1 2022 83 9 6 Environmental and Resource Economics 115 144 http://link.springer.com/10.1007/s10640-022-00679-w text/html Abstract Felix Pretis fpretis@uvic.ca University of Victoria University of Oxford
oai:RePEc:kap:enreec:v:72:y:2019:i:4:d:10.1007_s10640-018-0237-92019-05-02RePEc:kap:enreec
article Agri-environmental Policies and Public Goods: An Assessment of Coalition Incentives and Minimum Participation Rules Abstract An increasing number of papers analyse the inclusion of collective/spatial conditionality constraints in agricultural policies dealing with natural resource management. In this article we theoretically assess the conditions in which employing collective conditionality constraints linked to incentives better reach the social preferences on PG provision by agriculture. We deal with this issue by using a coalition formation model to endogenize the size of the group of farmers cooperating, and investigate how it is affected by different policy schemes. We analyse and compare the following policy schemes: (1) a homogenous payment that target the whole population of farmers, (2) a coalition bonus, that incentivizes only the contributions by the coalition members, and (3) a coalition bonus associated to a MPR on the size of the coalition. The results show that formulating payments that discriminate between co-operators and free-riders, and associating to such a payment a MPR, is relatively more effective than the traditional homogenous payments. However this is true only under some (local) conditions that we theoretically derived. Agglomeration bonus, Coalition formation, Public good, Biodiversity conservation, Agri-environmental policy 4 2019 72 4 6 Environmental and Resource Economics 1023 1040 http://link.springer.com/10.1007/s10640-018-0237-9 text/html Abstract Matteo Zavalloni matteo.zavalloni@unibo.it University of Bologna Meri Raggi meri.raggi@unibo.it University of Bologna Davide Viaggi davide.viaggi@unibo.it University of Bologna
oai:RePEc:kap:enreec:v:72:y:2019:i:4:d:10.1007_s10640-018-0235-y2019-05-02RePEc:kap:enreec
article Transaction Costs of Upstream Versus Downstream Pricing of $$\hbox {CO}_{2}$$ CO 2 Emissions Abstract To the best of our knowledge, this is the first paper comparing empirically the transaction costs of the monitoring, reporting and verification (MRV) required by two environmental regulations aimed to cost-efficiently reduce greenhouse gas emissions: a carbon dioxide ( $$\hbox {CO}_{2}$$ CO 2 ) tax and an emissions trading system. We do this in the case of Sweden, where a set of firms are covered by both types of regulations—the Swedish $$\hbox {CO}_{2}$$ CO 2 tax and the European Union’s Emissions Trading System (EU ETS). Our results indicate that there is a significant degree of heterogeneity in the transaction costs of the firms in our sample. Moreover, for some of the firms, the transaction costs are high when compared with the actual cost of the $$\hbox {CO}_{2}$$ CO 2 tax and the price of the EU ETS. Furthermore, we find that the MRV costs are lower for $$\hbox {CO}_{2}$$ CO 2 taxation than for the EU ETS, which confirms the general view that regulating emissions upstream via a $$\hbox {CO}_{2}$$ CO 2 tax yields lower transaction costs vis-á-vis downstream regulation via emissions trading. Climate change, $$\hbox {CO}_{2}$$ CO 2 tax, Emissions trading, Firm-level data, EU ETS, Transaction costs, Sweden 4 2019 72 4 4 Environmental and Resource Economics 965 1001 D23 H23 Q52 Q58 http://link.springer.com/10.1007/s10640-018-0235-y text/html Abstract Jessica Coria Jessica.Coria@economics.gu.se University of Gothenburg Jūratė Jaraitė jurate.jaraite@econ.umu.se Umeå University
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article Carbon Tax, Emission Standards, and Carbon Leak Under Price Competition Abstract We consider a two-country model of price competition, with one polluting firm in each country and differentiated products. Assuming away, to simplify, abatement efforts and input substitution, we compare the impact on output, leakages, and trade volumes of a carbon tax versus an emission standard policy, unilaterally enacted by the home country. Under the tax the two firms set their prices simultaneously, in a Bertrand game. Under the standard the home firm’s price is conditioned on the price of the foreign firm, so as to abide the emission constraint. As a result, the tax leads to higher leakages and global emissions than the standard. The standard also implies a better trade balance for the home country than the tax. Carbon leakage, Carbon tax, Emission standards, Trade balance, Price competition 4 2019 72 4 3 Environmental and Resource Economics 941 964 http://link.springer.com/10.1007/s10640-018-0234-z text/html Abstract Paolo Giorgio Garella paolo.garella@unimi.it Università degli Studi di Milano Maria Teresa Trentinaglia mttrentinaglia@gmail.com Università degli Studi di Milano
oai:RePEc:kap:enreec:v:72:y:2019:i:4:d:10.1007_s10640-018-0238-82019-05-02RePEc:kap:enreec
article Cooperative Management of Invasive Species: A Dynamic Nash Bargaining Approach Abstract We use a Nash bargaining framework to examine scope for bargaining in invasive species problems where spread depends on the employment of costly controls. Municipalities bargain over a transfer payment that slows spread but requires an infested municipality to forgo nonmarket benefits from the host species. We find that when the uninfested municipality has a relative bargaining power advantage, bargaining may attain the first-best solution. However, in many cases a short-term bargaining agreement is unlikely to succeed, which suggests a role for higher levels of government to facilitate long-term agreements even when the details are left to municipalities to negotiate. Bioeconomics, Biological invasions, Emerald ash borer, Negotiation, Optimal control, Pest spread 4 2019 72 4 7 Environmental and Resource Economics 1041 1068 Q57 Q23 C71 http://link.springer.com/10.1007/s10640-018-0238-8 text/html Abstract Kelly M. Cobourn kellyc13@vt.edu Virginia Tech Gregory S. Amacher Virginia Tech Robert G. Haight USDA Forest Service Northern Research Station
oai:RePEc:kap:enreec:v:72:y:2019:i:4:d:10.1007_s10640-018-0240-12019-05-02RePEc:kap:enreec
article The Convergence of China’s Marginal Abatement Cost of CO2: An Emission-Weighted Continuous State Space Approach Abstract This paper develops a weighted continuous state space approach to convergence analysis and makes a first empirical attempt at examining the heterogeneity and convergence of China’s marginal abatement cost (MAC) of CO2 using a dataset of 286 cities during the years 2002–2013. The results show clear patterns of convergence in China’s MAC but substantial heterogeneity remains in the long run. Both joint and conditional emission-weighted distributions suggest less heterogeneity in abatement cost but greater potential for low-cost abatement opportunities than it appears in the commonly-presented unweighted distributions. The findings provide strong scientific support for China to take more proactive and aggressive measures to mitigate CO2 emissions. Marginal abatement cost, Carbon emissions, Convergence, State space approach, Continuous dynamic distribution approach, China Q52, Q53, Q54, Q58, D24, D61 4 2019 72 4 9 Environmental and Resource Economics 1099 1119 http://link.springer.com/10.1007/s10640-018-0240-1 text/html Abstract Jianxin Wu Jinan University Chunbo Ma chunbo.ma@uwa.edu.au Jinan University University of Western Australia
oai:RePEc:kap:enreec:v:72:y:2019:i:4:d:10.1007_s10640-018-0245-92019-05-02RePEc:kap:enreec
article Second-Best Prioritization of Environmental Cleanups Abstract Yearly allocations to EPA Superfund cleanups are relatively fixed, but the EPA has significant leeway over which sites to clean within a given year. However, the EPA currently does not consider any economic criteria when ordering sites for remediation. Given the local economic benefits to cleaning, the EPA may be able to increase overall social welfare by considering certain economic criteria. We build a theoretical model that incorporates both the short-run and long-run cleanup benefits and identifies the site and location characteristics that impact welfare. We then use calibrated Monte Carlo simulations to compare 6 feasible cleanup policies and 1 infeasible best-case policy to the status quo policy. We find that the best of the feasible policies can on average improve welfare by 1.88% of the status quo policy, though the administrative costs are likely non-trivial. A similarly beneficial alternative may be to use a set of heuristics regarding site characteristics to order cleanups. In order of importance, the ranking criteria are: site cleanup cost (cheapest first), long-term economic damages from waste, areas currently in a recession, and local discount rates. Ex ante local economic stability has no significant effect. This set of heuristics sees a slightly smaller mean welfare increase (1.85%). Notably, since 3 of the 4 criteria are easily observable, this increase is nearly costless. Environmental policy, Superfund, Government spending, Countercyclical policy 4 2019 72 4 14 Environmental and Resource Economics 1225 1249 Q52 Q58 H4 http://link.springer.com/10.1007/s10640-018-0245-9 text/html Abstract Jacob LaRiviere jlariv@microsoft.com Office of the Chief Economist, Microsoft University of Tennessee University of Washington Matthew McMahon matthew.mcmahon21@gmail.com The University of Arkansas at Little Rock Justin Roush Georgia College and State University
oai:RePEc:kap:enreec:v:72:y:2019:i:4:d:10.1007_s10640-018-0243-y2019-05-02RePEc:kap:enreec
article Multidimensional Green Product Design Abstract This paper studies the impact of environmental policies when firms can adjust product design as they see fit. In particular, it considers cross relationships between product design dimensions. For example, when products are designed to be more durable, this may add production steps and increase pollutant emissions during production. More generally, changes applied to one dimension can affect the cost or environmental performance of other dimensions. In this theoretical model, a firm interacts with consumers and a regulator. Before the production stage, the firm must choose the levels of three design dimensions: (1) energy performance during production, (2) energy performance during use, and (3) durability. Depending on the assumptions, the dimensions are said to be complementary, neutral, or competitive. The regulator can promote greener designs by applying targeted environmental taxes on emissions during production or consumption. The main results shed light on the consequences of modifying public policies. When some design dimensions are competitive, a targeted emission tax can result in environmental burden shifting, with an overall increase in pollution. This paper also explores the social optimum and the development of second-best policies when some policy instruments are imperfect. When the social planner ignores the possibility for firms to adjust the level of durability, firms may use planned obsolescence to mitigate the cost of too stringent environmental policies. Also, under particular conditions, a government would want to regulate and constrain the level of durability. Green design, Environmental policies, Durability, Planned obsolescence 4 2019 72 4 12 Environmental and Resource Economics 1183 1202 L10 O13 Q53 Q55 Q58 http://link.springer.com/10.1007/s10640-018-0243-y text/html Abstract Sophie Bernard sophie.bernard@polymtl.ca Polytechnique Montréal CIRANO
oai:RePEc:kap:enreec:v:72:y:2019:i:4:d:10.1007_s10640-018-0233-02019-05-02RePEc:kap:enreec
article Sharing a Groundwater Resource in a Context of Regime Shifts Abstract We study the occurrence of shocks in a common groundwater resource problem using a differential game. In particular, we use Rubio and Casino’s adaptation of the Gisser and Sánchez model where we introduce a sudden change in the dynamics of the resource, namely a decrease in the recharge rate of the aquifer. We compare the pareto optimal solution with open-loop and feedback equilibria. First, we show analytically how different solutions, at the steady state, depend on the intensity of the shock. Moreover, we show that the cost and the strategic effects are decreasing functions of the intensity of the shock, i.e. that all the solutions get closer at the steady state for more intense shocks. We finally apply the game to the particular case of the Western La Mancha aquifer. The aim of this application is to estimate how shocks influence the inefficiency of open loop and feedback strategies in terms of welfare. We show that this inefficiency decreases the earlier the shock occurs or the higher the intensity of the shock. Groundwater resource, Differential game, Strategic interactions, Exogenous shock, Regime shift 4 2019 72 4 2 Environmental and Resource Economics 913 940 C72 Q25 http://link.springer.com/10.1007/s10640-018-0233-0 text/html Abstract Julia Frutos Cachorro j.defrutos@ub.edu Universitat de Barcelona Katrin Erdlenbruch G-EAU, Irstea, Cirad, IRD, AgroParisTech, Montpellier SupAgro, Univ Montpellier Mabel Tidball CEE-M, Univ Montpellier, CNRS, INRA, SupAgro
oai:RePEc:kap:enreec:v:72:y:2019:i:4:d:10.1007_s10640-018-0230-32019-05-02RePEc:kap:enreec
article Environmental Taxation, Employment and Public Spending in Developing Countries Abstract This paper investigates the consequences of environmental tax reforms for unemployment and welfare, in the case of developing countries with a large informal sector, rural–urban migration, and three different assumptions about public spending: (1) as part of a revenue-neutral policy, (2) fixed, and (3) varying endogenously. Under the indexation of unemployment benefits and informal-sector income that give rise to a double dividend, a lower level of public spending is associated with a smaller negative impact on the after-tax income of households and a higher increase in employment. These policies, however, still lead to a reduction in social welfare; even more so in the case of endogenous public spending, although it is associated with a higher increase in employment and a smaller reduction in private-sector incomes. The model implies that complementary policy, in terms of lower public spending, is unlikely to be socially acceptable, and does not support the case for a green tax reforms in developing countries. Informal sector, Matching frictions, Rural–urban migration, Pollution taxes, Double dividend 4 2019 72 4 1 Environmental and Resource Economics 877 912 H20 H23 H30 http://link.springer.com/10.1007/s10640-018-0230-3 text/html Abstract Karlygash Kuralbayeva k.z.kuralbayeva@lse.ac.uk LSE
oai:RePEc:kap:enreec:v:72:y:2019:i:4:d:10.1007_s10640-018-0236-x2019-05-02RePEc:kap:enreec
article Energy and Physical Capital: A Case of Non-classical Dynamics Abstract We study the importance of considering different energy requirements for physical capital and final good production in an overlapping generations (OLG) resource economy. In contrast to the standard OLG framework, but consistently with the empirical evidence, we assume that the accumulation of physical capital requires more energy than the production of consumption goods. Focusing on exhaustible energy resources, we find that OLG equilibria can exhibit “non-classical dynamics”: the economy generates complex dynamics where, differing from the response predicted by the standard approach, resource prices may not increase monotonically. This result illustrates that the technological assumptions behind the energy inputs should be taken with caution, in particular on dynamic analyses involving exhaustible energy resources. Exhaustible energy resources, Economic dynamics, Overlapping generations 4 2019 72 4 5 Environmental and Resource Economics 1003 1022 Q31 Q43 O44 http://link.springer.com/10.1007/s10640-018-0236-x text/html Abstract Burcu Afyonoğlu Fazlıoğlu TOBB-ETU University Agustín Pérez-Barahona agustinperezbarahona@gmail.com Université de Cergy-Pontoise and Ecole Polytechnique Çağrı Sağlam Bilkent University
oai:RePEc:kap:enreec:v:72:y:2019:i:4:d:10.1007_s10640-018-0242-z2019-05-02RePEc:kap:enreec
article New Estimates of the Elasticity of Marginal Utility for the UK Abstract This paper provides novel empirical evidence on the value of the elasticity of marginal utility, $$ \eta $$ η , for the United Kingdom. $$ \eta $$ η is a crucial component of the social discount rate (SDR), which determines the inter-temporal trade-offs that are acceptable to society. Using contemporaneous and historical data, new estimates are obtained using four revealed-preference techniques: the equal-sacrifice income tax approach, the Euler-equation approach, the Frisch additive-preferences approach and risk aversion in insurance markets. A meta-analysis indicates parameter homogeneity across approaches, and a central estimate of 1.5 for $$ \eta $$ η . The confidence interval excludes unity, the value used in official guidance by the UK government. The term structure of the SDR is then estimated. The result is a short-run SDR of 4.5% declining to 4.2% in the very long-run. This is higher and flatter than the UK official guidance. The difference stems from incorrect calibration of social welfare and estimation of the diffusion of growth. Other things equal, the results suggest that current UK guidance might need to be updated. Elasticity of marginal utility, Social rate of time preference, Social discount rate, Cost–Benefit analysis 4 2019 72 4 11 Environmental and Resource Economics 1155 1182 D60 D61 H24 R13 http://link.springer.com/10.1007/s10640-018-0242-z text/html Abstract Ben Groom b.groom@lse.ac.uk London School of Economics David Maddison Pr. d.j.maddison@bham.ac.uk University of Birmingham
oai:RePEc:kap:enreec:v:72:y:2019:i:4:d:10.1007_s10640-018-0239-72019-05-02RePEc:kap:enreec
article Natural Disasters and Macroeconomic Performance Abstract Recent empirical research has shown that output and GDP per capita in the aftermath of natural disasters are not necessarily lower than before the event. In many cases, both are not significantly affected and, surprisingly, sometimes they are found to respond positively to natural disasters. Here, we propose a novel economic theory that explains these observations. Specifically, we show that GDP is driven above its pre-shock level when natural disasters destroy predominantly durable consumption goods (cars, furniture, etc.). Disasters destroying mainly productive capital, in contrast, are predicted to reduce GDP. Insignificant responses of GDP can be expected when disasters destroy both, durable goods and productive capital. We extend the model by a residential housing sector and show that disasters may also have an insignificant impact on GDP when they destroy residential houses and durable goods. We show that disasters, irrespective of whether their impact on GDP is positive, negative, or insignificant, entail considerable losses of aggregate welfare. Natural disasters, Economic recovery, Durable goods, Residential housing, Economic growth 4 2019 72 4 8 Environmental and Resource Economics 1069 1098 E20 O40 Q54 R31 http://link.springer.com/10.1007/s10640-018-0239-7 text/html Abstract Holger Strulik holger.strulik@wiwi.uni-goettingen.de University of Goettingen Timo Trimborn timo.trimborn@tuwien.ac.at Vienna University of Technology
oai:RePEc:kap:enreec:v:72:y:2019:i:4:d:10.1007_s10640-018-0244-x2019-05-02RePEc:kap:enreec
article Assessing the Causal Effect of Curbside Collection on Recycling Behavior in a Non-randomized Experiment with Self-reported Outcome Abstract This paper aims at identifying the causal effect of reducing behavioral costs of participation in household waste recycling through curbside collection. Using propensity score matching and differences-in-differences estimation with individual-level panel data we estimate the effect of curbside collection, its variation between types of recyclables and sociodemographic background variables, and its elasticity with regard to the distance to collection containers in the bring scheme condition. We argue that in a quasi-experimental setting DD may be systematically upward biased due to the outcome variable being self-reported while DDD may be systematically downward biased in the presence of spillover effects. Accordingly, both estimators can be combined to derive upper and lower bounds of the true effect. We find that a curbside scheme has no effect on paper recycling but increases recycling participation by between 10 and 25% points for plastic and packaging. Moreover, we find systematic treatment effect heterogeneity with regard to pre-treatment distance to collection sites and individual environmental attitudes, but not by socio-demography. The results of our analysis therefore have important implications for effective and cost-efficient implementation of environmental protection policies in urban areas. Environmental behavior, Environmental policy, Recycling, Natural experiment, Propensity score matching, Differences in differences, Causal analysis 4 2019 72 4 13 Environmental and Resource Economics 1203 1223 http://link.springer.com/10.1007/s10640-018-0244-x text/html Abstract Henning Best best@sowi.uni-kl.de University of Kaiserslautern Thorsten Kneip kneip@mea.mpisoc.mpg.de Max Planck Institute for Social Law and Social Policy
oai:RePEc:kap:enreec:v:72:y:2019:i:4:d:10.1007_s10640-018-0241-02019-05-02RePEc:kap:enreec
article Catch Uncertainty and Reward Schemes in a Commons Dilemma: An Experimental Study Abstract We design and conduct a laboratory experiment with students and a field experiment with fishermen to test how catch uncertainty and reward schemes affect extraction in an open access fishery. We find that uncertainty in the relationship between effort and catch increases extraction effort and accelerates resource depletion. Importantly, participants increase their extraction after a disadvantageous shock, but do not react to advantageous shocks. One possible explanation of this phenomenon is a self-serving bias. Price-responsive demand, relative to a fixed price setting, decreases extraction effort and increases efficiency. Price-responsive demand has a greater effect on students than on fishermen living inside a marine protected area, but fishermen outside this restricted area are very responsive to conditional pricing. Framed field experiment, Artisanal fishery, Dynamic resource, Stochastic production function C72, C92, D03, Q22, Q57 4 2019 72 4 10 Environmental and Resource Economics 1121 1153 http://link.springer.com/10.1007/s10640-018-0241-0 text/html Abstract Astrid Hopfensitz Toulouse School of Economics César Mantilla cesar.mantilla@urosario.edu.co Universidad del Rosario Josepa Miquel-Florensa Toulouse School of Economics
oai:RePEc:kap:enreec:v:77:y:2020:i:3:d:10.1007_s10640-020-00503-32020-10-20RePEc:kap:enreec
article Model Uncertainty in Climate Change Economics: A Review and Proposed Framework for Future Research Abstract We review recent models of choices under uncertainty that have been proposed in the economic literature. In particular, we show how different concepts and methods of economic decision theory can be directly useful for problems in environmental economics. The framework we propose is general and can be applied in many different fields of environmental economics. To illustrate, we provide a simple application in the context of an optimal mitigation policy under climate change. Ambiguity, Non-expected utility, Model uncertainty, Climate change 3 2020 77 11 1 Environmental and Resource Economics 475 501 D81 Q54 http://link.springer.com/10.1007/s10640-020-00503-3 text/html Abstract Loïc Berger l.berger@ieseg.fr Univ. Lille, UMR 9221 - LEM Centro Euro-Mediterraneo sui Cambiamenti Climatici Massimo Marinacci Universita Bocconi
oai:RePEc:kap:enreec:v:77:y:2020:i:3:d:10.1007_s10640-020-00507-z2020-10-20RePEc:kap:enreec
article Pollution for Sale: Firms’ Characteristics and Lobbying Outcome Abstract We consider how the attributes of individual firms may influence the lobbying outcome concerning the setting of the stringency of a costly environmental regulation. We show that when there is a strong asymmetry between firms, a clean firm may lobby to strengthen the regulation, while its dirty rival lobbies to weaken the regulation. Moreover, the lobbying process is asymmetric in that the clean firm finds it more difficult to reach its objectives: although only a sufficiently large clean firm can succeed in strengthening regulation, a relatively small dirty firm can successfully bend a regulation toward its own interest. Common agency, Corporate political activity (CPA), Emission standard, Lobbying, Pollution tax, Raising rivals’ costs 3 2020 77 11 3 Environmental and Resource Economics 539 564 H25 L13 L51 Q58 http://link.springer.com/10.1007/s10640-020-00507-z text/html Abstract Dapeng Cai dcai@nanzan-u.ac.jp Nanzan University Jie Li eflijie@jnu.edu.cn Jinan University
oai:RePEc:kap:enreec:v:77:y:2020:i:3:d:10.1007_s10640-020-00510-42020-10-20RePEc:kap:enreec
article Correction to: Assessing Short-Term and Long-Term Economic and Environmental Effects of the COVID-19 Crisis in France The article was published with a typographical error in one reference. 3 2020 77 11 8 Environmental and Resource Economics 669 669 http://link.springer.com/10.1007/s10640-020-00510-4 text/html Abstract Paul Malliet paul.malliet@sciencespo.fr OFCE - French Economic Observatory Frédéric Reynès OFCE - French Economic Observatory NEO - Netherlands Economic Observatory TNO - Netherlands Organization for Applied Scientifc Research Gissela Landa OFCE - French Economic Observatory Meriem Hamdi‑Cherif OFCE - French Economic Observatory Aurélien Saussay OFCE - French Economic Observatory LSE - London School of Economics
oai:RePEc:kap:enreec:v:77:y:2020:i:3:d:10.1007_s10640-020-00508-y2020-10-20RePEc:kap:enreec
article Profitability, Capacity and Productivity Trends in an Evolving Rights Based Fishery: The Norwegian Purse Seine Fishery Abstract Regulators in many countries have adopted individual quotas as a means of dealing with the open access problem inherent in fisheries. The Norwegian Purse Seine fishery has evolved over the last 40 years from an open access fishery to a Rights Based management system with individual vessel catch quotas assigned to all major fish species. Regulations do allow for merging vessel quota. The purpose of this paper is to employ an index approach to decompose vessel revenues and costs by factor components. The index approach can measure the importance of prices, output and regulatory changes impacting productivity and provides insight into changes in a mature IVQ fishery. The current study uses a large individual vessel data set for the period 1994–2013. Results show that over time output prices have been the main drivers associated with increased revenues. We correlate output prices with an evolving IVQ fishery, and changes in harvest and demand conditions. Ongoing capital investment, not offset by increased harvest, has seen productivity decline in the early periods of the study but some recovery towards the end of the period. Rights Based fisheries (IVQ), Prices, Productivity, Revenue-cost decomposition, Törnqvist index 3 2020 77 11 4 Environmental and Resource Economics 565 591 http://link.springer.com/10.1007/s10640-020-00508-y text/html Abstract Nils-Arne Ekerhovd nilsarne.ekerhovd@snf.no SNF-Centre for Applied Research at NHH Daniel V. Gordon dgordon@ucalgary.ca University of Calgary University of Stavanger
oai:RePEc:kap:enreec:v:77:y:2020:i:3:d:10.1007_s10640-020-00511-32020-10-20RePEc:kap:enreec
article A Mire of Discount Rates: Delaying Conservation Payment Schedules in a Choice Experiment Abstract Studies on the public’s implicit discount rate in the willingness to pay for environmental amenities have mostly employed contingent valuation surveys. We investigate respondents’ time preferences using choice experiments with four payment schedules in a split-sample design in the context of mire conservation. We first examine preference and taste heterogeneity among respondents, finding them to a large extent independent of payment schedules. Next we use an endogenous approach to jointly estimate the implicit discount rates and preferences using choice experiments data. We explore exponential and hyperbolic discounting model specifications. We find insensitivity to the length of the payment period and support for hyperbolic discounting. Furthermore, we provide policy relevant valuation results concerning mire conservation. Exponential discounting, Hyperbolic discounting, Choice experiment, Mixed logit model 3 2020 77 11 6 Environmental and Resource Economics 615 639 http://link.springer.com/10.1007/s10640-020-00511-3 text/html Abstract Ioanna Grammatikopoulou ext.ioanna.grammatikopoulou@luke.fi Natural Resources Institute Finland (Luke) Global Change Research Institute of the Czech Academy of Sciences Janne Artell Natural Resources Institute Finland (Luke) Turo Hjerppe Finnish Environment Institute Eija Pouta Natural Resources Institute Finland (Luke)
oai:RePEc:kap:enreec:v:77:y:2020:i:3:d:10.1007_s10640-020-00506-02020-10-20RePEc:kap:enreec
article What Causes Heterogeneous Responses to Social Comparison Messages for Water Conservation? Abstract Social comparisons for water conservation are often implemented in conjunction with a broader set of drought management policies. We investigate the interaction of social comparisons with prior responses to voluntary appeals for water conservation using a large-scale field experiment in Reno, Nevada. We develop a new social comparison framed as performance toward a conservation goal in contrast to the traditional comparison made in gallons. Our new social comparison decouples the performance relative to the peer group from baseline water use, allowing us to investigate the role of the peer comparison independently from baseline water use. Using a traditional and our new social comparison, we investigate prior conservation and baseline water use as drivers of heterogeneous response to social comparisons. Baseline water drives treatment heterogeneity in the traditional social comparison, while prior conservation drives treatment heterogeneity the new social comparison. The results indicate that under-performance relative one’s peers is critical for generating water conservation. Simple targeting of both types of social comparisons can increase aggregate savings by 38% because our new social comparison generates conservation among a different set of households compared to the traditional social comparison. Behavioral interventions, Social norms, Field experiments, Water conservation, Water demand D12, C93, H42, L95, Q21, Q25 3 2020 77 11 2 Environmental and Resource Economics 503 537 http://link.springer.com/10.1007/s10640-020-00506-0 text/html Abstract Daniel A. Brent dab320@psu.edu Pennsylvania State University Corey Lott corejeana@gmail.com Laurits R Christensen Associates, Inc Michael Taylor taylor@unr.edu University of Nevada Reno Joseph Cook joe.cook@wsu.edu Washington State University Kimberly Rollins kimberly.rollins@uconn.edu University of Connecticut Shawn Stoddard sstoddard@tmwa.com Truckee Meadows Water Authority
oai:RePEc:kap:enreec:v:77:y:2020:i:3:d:10.1007_s10640-020-00509-x2020-10-20RePEc:kap:enreec
article Water Quantity Management in a Heterogeneous Landscape with Farsighted Farmers Abstract Agricultural production contributes to many environmental problems. In semi-arid areas, agricultural irrigation causes the so-called waterlogging phenomenon. This phenomenon is both spatial and dynamic since percolation depends on soil quality summed up in landscape heterogeneity and evolves along time. Furthermore, farmers can be farsighted with respect to their contribution to percolation. We study regulation schemes to be implemented to restore the socially optimal spatial and temporal production plan of farmers in such a context. We show that both a temporal tax on percolation and a spatio-temporal tax on inputs (both at the extensive and at the intensive margin) are efficient for the restoration of the socially optimal solution. Furthermore, a numerical example demonstrates that the consequences of implementing a fiscal scheme designed for myopic farmers whereas they are farsighted depends on the distribution of soil quality. Irrigation, Landscape, Spatio-temporal optimization, Differential game 3 2020 77 11 5 Environmental and Resource Economics 593 613 Q24 Q25 C72 http://link.springer.com/10.1007/s10640-020-00509-x text/html Abstract Anne-Sarah Chiambretto anne-sarah@orange.fr Univ. Montpellier Elsa Martin elsa.martin@inrae.fr Univ. Bourgogne Franche-Comté
oai:RePEc:kap:enreec:v:77:y:2020:i:3:d:10.1007_s10640-020-00513-12020-10-20RePEc:kap:enreec
article Refunding Emission Payments: Output-Based Versus Expenditure-Based Refunding Abstract We analyse two mechanism designs for refunding emission payments to polluting firms: output-based refunding (OBR) and expenditure-based refunding (EBR). In both instruments, emission fees are returned to the polluting industry, typically making the policy more politically acceptable than a standard tax. The crucial difference between OBR and EBR is that the fees are refunded in proportion to output in the former but in proportion to the firms’ expenditure on abatement technology equipment in the latter. To achieve the same abatement target as a standard tax, the fee level in the OBR design is higher, whereas the fee level in the EBR design is lower. The use of OBR and EBR may lead to large differences in the distribution of output and costs across firms. Both designs imply a cost-ineffective provision of abatement, as firms put relatively too much effort into reducing emissions through abatement technology compared with reducing output. However, a standard tax may be politically infeasible and maintaining output may be seen as a political advantage by policymakers if they seek to avoid activity reduction in the regulated sector. Refunded charge, Output-based, Expenditure-based, NOx, Tax subsidy, Policy design 3 2020 77 11 7 Environmental and Resource Economics 641 667 Q28 Q25 H23 http://link.springer.com/10.1007/s10640-020-00513-1 text/html Abstract Cathrine Hagem cah@ssb.no Statistics Norway Michael Hoel University of Oslo Thomas Sterner University of Gothenburg
oai:RePEc:kap:enreec:v:77:y:2020:i:3:d:10.1007_s10640-020-00512-22020-10-20RePEc:kap:enreec
article Correction to: Non-participation and Heterogeneity in Stated Preferences: A Double Hurdle Latent Class Approach for Climate Change Adaptation Plans and Ecosystem Services The article was published with a typographical error in the title. 3 2020 77 11 9 Environmental and Resource Economics 671 671 http://link.springer.com/10.1007/s10640-020-00512-2 text/html Abstract Zhenshan Chen zhenshan.chen@uconn.edu University of Connecticut Stephen K. Swallow University of Connecticut Ian T. Yue Delaware Department of Natural Resources and Environmental Control
oai:RePEc:kap:enreec:v:67:y:2017:i:3:d:10.1007_s10640-017-0140-92021-03-07RePEc:kap:enreec
article (Un)fair Delegation: Exploring the Strategic Use of Equity Rules in International Climate Negotiations Abstract We provide a new approach for identifying a strategic use of equity arguments in international (climate) negotiations. We first develop a theoretical model of strategic delegation which accounts for both environmental as well as equity preferences. We show that the strategic use of equity arguments qualitatively depends on the extent to which environmental preferences can be misrepresented: representatives from different countries may be expected to have similar equity views rather than widely differing perceptions of a fair share. Based on survey data on climate negotiations, we then provide empirical evidence for differences between equity preferences of citizens from Germany, China, and the U.S. and the perceived view on the position of their respective countries. International environmental negotiations, Climate policy, Strategic delegation, Equity rules, Fairness principles 3 2017 67 7 6 Environmental and Resource Economics 505 533 D63 H41 Q54 http://link.springer.com/10.1007/s10640-017-0140-9 text/html Abstract Andreas Lange andreas.lange@wiso.uni-hamburg.de University of Hamburg Claudia Schwirplies claudia.schwirplies@wiso.uni-hamburg.de University of Hamburg
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article Attitudes Toward Catastrophe Abstract In light of climate change and other global threats, policy commentators sometimes urge that society should be more concerned about catastrophes. This paper reflects on what society’s attitude toward low-probability, high-impact events is, or should be. We first argue that catastrophe risk can be conceived of as a spread in the distribution of losses. Based on this conception, we review studies from decision sciences, psychology, and behavioral economics that explore people’s attitudes toward various social risks. Contray to popular belief, we find more evidence against than in favor of catastrophe aversion—the preference for a mean-preserving contraction of the loss distribution—and discuss a number of possible behavioral explanations. Next, we turn to social choice theory and examine how various social welfare functions handle catastrophe risk. We explain why catastrophe aversion may be in conflict with equity concerns and other-regarding preferences. Finally, we discuss current approaches to evaluate and regulate catastrophe risk. Catastrophe, Social risks, Framing, Risk aversion, Equity concerns 3 2017 67 7 10 Environmental and Resource Economics 609 636 http://link.springer.com/10.1007/s10640-016-0033-3 text/html Abstract Christoph M. Rheinberger rheinberger.cm@gmail.com Toulouse School of Economics European Chemicals Agency (ECHA) Nicolas Treich Toulouse School of Economics (INRA)
oai:RePEc:kap:enreec:v:67:y:2017:i:3:d:10.1007_s10640-016-0094-32021-03-07RePEc:kap:enreec
article Do Extrinsic Incentives Undermine Social Norms? Evidence from a Field Experiment in Energy Conservation Abstract Policymakers use both extrinsic and intrinsic incentives to induce consumers to change behavior. This paper investigates whether the use of extrinsic financial incentives is complementary to intrinsic incentives, or whether financial incentives undermine the effect of intrinsic incentives. We conduct a randomized controlled trial that uses information interventions to residential electricity customers to test this question. We find that adding economic incentives to normative messages not only does not strengthen the effect of the latter but may reduce it. These results are consistent with recent theoretical work that suggests a tension between intrinsic motivation and extrinsic incentives. Behavioral economics, Field experiments, Energy conservation, Normative appeals 3 2017 67 7 2 Environmental and Resource Economics 413 428 http://link.springer.com/10.1007/s10640-016-0094-3 text/html Abstract José A. Pellerano japellerano@siuben.gob.do Universidad Iberoamericana Michael K. Price mprice25@gsu.edu Georgia State University NBER Steven L. Puller puller@econmail.tamu.edu NBER Texas A&M University The E2e Project Gonzalo E. Sánchez edsanche@espol.edu.ec ESPOL
oai:RePEc:kap:enreec:v:67:y:2017:i:3:d:10.1007_s10640-016-0028-02021-03-07RePEc:kap:enreec
article The Influence of Collective Action on the Demand for Voluntary Climate Change Mitigation in Hypothetical and Real Situations Abstract In this experiment, we investigate demand for voluntary climate change mitigation. Subjects decide between a cash prize and an allowance from the EU Emissions Trading Scheme for one ton of $$\hbox {CO}_{2}$$ CO 2 that will be deleted after the completion of the experiment. Decisions were implemented either as purely individual or as a collective action using majority voting. We vary the incentives of the decision situation in which we distinguish between real monetary incentives and a hypothetical decision situation with, and without, a cheap talk script. Collective decision making affects demand positively in the hypothetical decision situation only and we observe a significant hypothetical bias in the demand for voluntary climate change mitigation. Demand for voluntary climate change mitigation, Public goods, Collective action, Hypothetical bias 3 2017 67 7 3 Environmental and Resource Economics 429 454 Q51 Q54 C93 http://link.springer.com/10.1007/s10640-016-0028-0 text/html Abstract Reinhard Uehleke reinhard.uehleke@uni-rostock.de Leipzig University of Applied Science (HTWK) University of Rostock Bodo Sturm Leipzig University of Applied Science (HTWK)
oai:RePEc:kap:enreec:v:67:y:2017:i:3:d:10.1007_s10640-016-0023-52021-03-07RePEc:kap:enreec
article Referenda Under Oath Abstract Herein we explore whether a solemn oath can eliminate hypothetical bias in a voting referenda, a popular elicitation mechanism promoted in non-market valuation exercises for its incentive compatibility properties. First, we reject the null hypothesis that a hypothetical bias does not exist. Second, we observe that people who sign an oath are significantly less likely to vote for the public good in a hypothetical referenda. We complement this evidence with a self-reported measure of honesty which confirms that the oath increases truthfulness in answers. This result opens interesting avenues for improving the elicitation of preferences in the lab and beyond. Dichotomous choice mechanism, Hypothetical bias, Oath, Preference revelation 3 2017 67 7 5 Environmental and Resource Economics 479 504 C9 H4 Q5 http://link.springer.com/10.1007/s10640-016-0023-5 text/html Abstract Nicolas Jacquemet nicolas.jacquemet@univ-lorraine.fr Université de Lorraine (BETA) Alexander James alex.james@uaa.alaska.edu University of Alaska Anchorage Stéphane Luchini stephane.luchini@univ-amu.fr CNRS and EHESS, Centre de la Vieille Charité Jason F. Shogren jramses@uwyo.edu University of Wyoming
oai:RePEc:kap:enreec:v:67:y:2017:i:3:d:10.1007_s10640-016-9997-22021-03-07RePEc:kap:enreec
article Successful Leadership in Global Public Good Provision: Incorporating Behavioural Approaches Abstract In the standard model of voluntary public good provision and other game theoretic models, climate-friendly leadership of a country is not successful: A unilateral increase of this country’s greenhouse gas abatement measures, i.e., contributions to the global public good of climate protection, will not lead to a positive reaction by the other countries but instead trigger a reduction of their abatement efforts and thus a crowding-out effect. In this paper it is shown how this undesired consequence need no longer occur when elements of behavioral economics are incorporated in the otherwise standard model of public good provision. In particular, strategic complementarities between the public good contribution of the leading country and those of the follower may result either if the follower has specific non-egoistic or other-regarding preferences or if the leader’s contribution positively affects the follower’s beliefs, i.e., his conjectural variations, about the leader’s behaviour. Climate protection, Voluntary public good provision, Other-regarding preferences, Conjectural variations 3 2017 67 7 9 Environmental and Resource Economics 591 607 C72 D03 H41 H87 Q54 http://link.springer.com/10.1007/s10640-016-9997-2 text/html Abstract Wolfgang Buchholz wolfgang.buchholz@ur.de University of Regensburg CESifo Munich Todd Sandler tsandler@utdallas.edu University of Texas at Dallas
oai:RePEc:kap:enreec:v:67:y:2017:i:3:d:10.1007_s10640-016-0022-62021-03-07RePEc:kap:enreec
article Voting for Burden Sharing Rules in Public Goods Games Abstract We experimentally investigate whether groups of heterogeneous agents can reach an agreement on how to share the costs of providing a public good. Thereby, we explore the performance of different burden sharing rules being implemented either endogenously or exogenously. In case of an endogenously implemented burden sharing rule, subjects vote for different burden sharing schemes either by unanimity or majority vote. Despite the fact that preferences for the allocation schemes differ among agents, most groups agree upon a common scheme, and consequently avoid an uncoordinated action. Our results reveal both the opportunities and risks of burden sharing negotiations. We find average efficiency levels to increase in case an agreement is reached. If groups however fail to agree upon a common rule, cooperation collapses and efficiency levels decrease compared to a voluntary contribution mechanism being exogenously imposed. Most importantly, agents who face a voting decision on average receive higher payoffs than agents in an exogenously implemented voluntary contribution mechanism and do not earn less than participants in any externally determined burden sharing rule. Public goods, Experiment, Cooperation, Burden sharing, Minimum contribution rules, Voting, Endogenous institutions, Agreement formation 3 2017 67 7 7 Environmental and Resource Economics 535 557 C72 C91 C92 D02 D72 H41 http://link.springer.com/10.1007/s10640-016-0022-6 text/html Abstract Carlo Gallier gallier@zew.de Centre for European Economic Research (ZEW) Martin Kesternich kesternich@zew.de Centre for European Economic Research (ZEW) Bodo Sturm bodo.sturm@htwk-leipzig.de Centre for European Economic Research (ZEW) Leipzig University of Applied Sciences
oai:RePEc:kap:enreec:v:67:y:2017:i:3:d:10.1007_s10640-016-0029-z2021-03-07RePEc:kap:enreec
article Giving is a Question of Time: Response Times and Contributions to an Environmental Public Good Abstract Does it matter whether contribution decisions regarding environmental public goods are arrived at through intuition or reflection? Experimental research in behavioral economics has recently adopted dual-system theories of the mind from psychology in order to address this question. This research uses response time data in public good games to distinguish between the two distinct cognitive processes. We extend this literature towards environmental public goods by analyzing response time data from an online experiment in which over 3400 subjects from the general population faced a dichotomous choice between receiving a monetary payment or contributing to climate change mitigation efforts. Our evidence confirms a strong positive link between response times and contributions: The average response time of contributors is 40 % higher than that of non-contributors. This suggests that reflection, not intuition, is at the root of pro-environmental contributions. This result is robust to a comprehensive set of robustness checks, including a within-subjects analysis that controls for potentially unobserved confounds and recovers the relationship at the individual level. Public goods, Cooperation, Dual-system theories, Response times, Climate change, Online experiment 3 2017 67 7 4 Environmental and Resource Economics 455 477 C93 H41 D03 http://link.springer.com/10.1007/s10640-016-0029-z text/html Abstract Johannes Lohse lohse@eco.uni-heidelberg.de University of Heidelberg Timo Goeschl University of Heidelberg Johannes H. Diederich University of Heidelberg
oai:RePEc:kap:enreec:v:67:y:2017:i:3:d:10.1007_s10640-017-0162-32021-03-07RePEc:kap:enreec
article Recent Trends in Behavioral Environmental Economics 3 2017 67 7 1 Environmental and Resource Economics 403 411 http://link.springer.com/10.1007/s10640-017-0162-3 text/html Abstract Martin Kesternich kesternich@zew.de Centre for European Economic Research (ZEW) Christiane Reif reif@zew.de Centre for European Economic Research (ZEW) Dirk Rübbelke Dirk.Ruebbelke@vwl.tu-freiberg.de Technische Universität Bergakademie Freiberg
oai:RePEc:kap:enreec:v:74:y:2019:i:3:d:10.1007_s10640-019-00367-22019-10-22RePEc:kap:enreec
article Environmental Efficiency and Pollution Costs of Nitrogen Surplus in Dairy Farms: A Parametric Hyperbolic Technology Distance Function Approach Abstract Negative externalities such as nitrogen (N) surplus that accompany dairy production activities are not usually accounted for in the market place since they are not costed. Using a parametric hyperbolic environmental technology distance function approach, we estimate the environmental efficiency and farm-specific abatement costs (shadow price) of nitrogen surplus in dairy farms on the island of Ireland (Northern Ireland and the Republic of Ireland). The methodology, unlike previous approaches (output/input distance functions), allows for asymmetric treatments of production outputs (desirable and undesirable outputs). We also analyse the farm level nitrogen pollution costs ratio and its determinants. The results of our analyses showed that the average environmental technical efficiency estimates for the Republic of Ireland and Northern Ireland are 0.89 and 0.92 and the mean abatement costs per kg of N surplus is €4.02 and €6.2 respectively. We found a reasonable degree of variation in the spectrum of abatement costs across the dairy farms with a relative increase observed over the years. Dairy farms, Environmental efficiency, Hyperbolic distance function, Nitrogen surplus, Pollution costs, Shadow price 3 2019 74 11 14 Environmental and Resource Economics 1273 1298 http://link.springer.com/10.1007/s10640-019-00367-2 text/html Abstract Adewale Henry Adenuga adewale.adenuga@afbini.gov.uk Agri-Food and Biosciences Institute (AFBI) John Davis Agri-Food and Biosciences Institute (AFBI) George Hutchinson Queen’s University Belfast Trevor Donnellan Teagasc, Rural Economy and Development Centre Myles Patton Agri-Food and Biosciences Institute (AFBI)
oai:RePEc:kap:enreec:v:74:y:2019:i:3:d:10.1007_s10640-019-00369-02019-10-22RePEc:kap:enreec
article On the Strategic Effect of International Permits Trading on Local Pollution Abstract We introduce a model of strategic environmental policy where two firms compete à la Cournot in a third market in the presence of multiple pollutants. Two types of pollutants are introduced: a local and a transboundary one. The regulator can only control local pollution as transboundary pollution is regulated internationally. We illustrate that when transboundary pollution is regulated through the use of tradable emission permits instead of non-tradable ones then a new strategic effect appears which has not been identified thus far. In this case, local pollution increases further. We caution that linking permit markets across regions may be welfare detrimental. We also provide evidence from the implementation of EU ETS over the pollution of particulate matters ( $$PM_{10}$$ P M 10 and $$PM_{2.5})$$ P M 2.5 ) . Environmental regulation, Multiple pollutants, (Non) tradable permits, Strategic interactions 3 2019 74 11 15 Environmental and Resource Economics 1299 1329 F12 F18 Q58 http://link.springer.com/10.1007/s10640-019-00369-0 text/html Abstract Fabio Antoniou fabio.antoniou@wiwi.hu-berlin.de University of Ioannina Humboldt-University Efthymia Kyriakopoulou efthymia.kyriakopoulou@slu.se Swedish University of Agricultural Sciences
oai:RePEc:kap:enreec:v:74:y:2019:i:3:d:10.1007_s10640-019-00371-62019-10-22RePEc:kap:enreec
article Delegation and Public Pressure in a Threshold Public Goods Game Abstract Many public goods cannot be provided directly by interested parties (e.g. citizens), as they entail decision-making at nested hierarchical scales: at a lower level individuals elect a representative, while at a higher scale elected delegates decide on the provision level, with some degree of scrutiny from their constituency. Furthermore, many such decisions involve uncertainty about the magnitude of the contribution that is needed for the good to be provided (or bad to be avoided). In such circumstances delegates can serve as important vehicles for coordination by aggregating societal preferences for provision. Yet, the role of delegation in threshold public goods games is understudied. We contrast the behavior of delegates to that of self-representing individuals in the avoidance of a public bad in an experimental setting. We randomly assign twelve subjects into four teams and ask each team to elect a delegate via majority voting. The elected delegates play several variants of a one-shot public goods game in which losses can ensue if the sum of their contributions falls short of a threshold. We find that when delegation is coupled with a mild form of public pressure, it has a significantly negative effect on contributions, even though the non-delegates can only signal their preferred levels of public good contributions. The reason is that delegates give more weight to the least cooperative suggestion: they focus on the lower of the two public good contributions recommended by their teammates. Delegation, Cooperation, Threshold public goods game, Climate experiment 3 2019 74 11 16 Environmental and Resource Economics 1331 1353 C72 C92 D81 H4 Q54 http://link.springer.com/10.1007/s10640-019-00371-6 text/html Abstract Doruk İriş dorukiris@gmail.com dorukiris@sogang.ac.kr Sogang University Jungmin Lee jmlee90@snu.ac.kr Seoul National University and Institute for the Study of Labor (IZA) Alessandro Tavoni alessandro.tavoni2@unibo.it University of Bologna Grantham Research Institute, London School of Economics and Political Science
oai:RePEc:kap:enreec:v:74:y:2019:i:3:d:10.1007_s10640-019-00363-62019-10-22RePEc:kap:enreec
article Trade in Environmental Goods and Air Pollution: A Mediation Analysis to Estimate Total, Direct and Indirect Effects Abstract Based on panel data covering 114 countries between 1996 and 2011, this study investigates the impact on pollution of trade in environmental goods (EGs). We check the validity of the implicit consequences assumed by the win–win scenario in the current trade-climate negotiations, arguing that market dynamics should guarantee that EGs’ liberalization is ‘automatically’ in the interest of all countries, regardless their market and institutional capacities. We show that trade in EGs alone fail to address environmental problems effectively. In particular, although we found efficiency gains from trade in EGs (in terms of CO2 and SO2 emissions per 1 US$ of GDP), and more recurrently for net exporters than for net importers, our results often failed to highlight environmental effectiveness (in terms of total CO2 and SO2 emissions). A general conclusion that emerges from our empirical results is that trade [in EGs] cannot effectively replace non-market-based solutions, when it comes to non-trade objectives. However, it seems to complement them efficiently. Our multiple-equation GMM estimations reveal specific direct, indirect and total effects on pollution depending on the countries’ net trade status, leading to several policy recommendations for an increased environmental effectiveness of trade in EGs. CO2 emissions, Environmental goods, Environmental goods agreement, Environmental policy, International trade, Net exporter, Net importer, Pollution, SO2 emissions 3 2019 74 11 9 Environmental and Resource Economics 1125 1162 F13 F14 F18 Q53 Q56 Q58 http://link.springer.com/10.1007/s10640-019-00363-6 text/html Abstract Natalia Zugravu-Soilita natalia.zugravu@uvsq.fr nzugravu@yahoo.com University of Versailles Saint-Quentin-en-Yvelines
oai:RePEc:kap:enreec:v:74:y:2019:i:3:d:10.1007_s10640-019-00356-52019-10-22RePEc:kap:enreec
article How Effective is Lithium Recycling as a Remedy for Resource Scarcity? Abstract We investigate to what extent recycling can remedy resource scarcity, and whether market intervention is desired. For doing so, we develop a dynamic model of the global lithium market. An efficient market for resource waste allows consumers to internalize the waste value when they buy the resource. Without a market for lithium waste, we show that the efficient outcome can alternatively be realized through a proper set of subsidies to either buyers or sellers of both virgin and recycled lithium. We find that optimal subsidies may become quite substantial in the second half of this century. The size of these subsidies depends, however, on several uncertain assumptions such as technological progress in recycling, quality-grade of recovered lithium, and demand elasticity. Natural resource economics, Exhaustible resources, Minerals, Recycling 3 2019 74 11 4 Environmental and Resource Economics 985 1010 http://link.springer.com/10.1007/s10640-019-00356-5 text/html Abstract Knut Einar Rosendahl knut.einar.rosendahl@nmbu.no Norwegian University of Life Sciences Diana Roa Rubiano diru@nmbu.no Norwegian University of Life Sciences
oai:RePEc:kap:enreec:v:74:y:2019:i:3:d:10.1007_s10640-019-00373-42019-10-22RePEc:kap:enreec
article About the Relationship Between Green Technology and Material Usage Abstract This paper examines the effects of environmental innovation on material usage, using Direct Material Input (DMI) and Raw Material Input (RMI) as indicators of material usage. The analysis is conducted on European Union countries for the years 1990–2012. We utilize the Generalized Method of Moments in a dynamic panel setting. Based on patent data, we construct green knowledge stocks for specific technological domains. We find that the effect of environmental innovation differs between subdomains. Innovation in the areas of energy efficiency, and recycling and reuse is found to reduce material usage. For alternative energy production, transportation, production or processing of goods, and general green innovation no significant effect is found. We observe a distinct reducing effect of some environmental innovation areas when compared with overall innovation. The technology effects are similar for RMI and DMI. The results are discussed from the perspective of literature on the environmental effects of environmental innovation, and literature on decoupling. Decoupling, Dynamic panel, Environmental innovation, Material flows, Patent data, Sustainable development 3 2019 74 11 18 Environmental and Resource Economics 1383 1423 Q01 Q55 Q56 Q58 http://link.springer.com/10.1007/s10640-019-00373-4 text/html Abstract Tobias Wendler tobias.wendler@uni-bremen.de University of Bremen
oai:RePEc:kap:enreec:v:74:y:2019:i:3:d:10.1007_s10640-019-00357-42019-10-22RePEc:kap:enreec
article Economic Growth and Environmental Degradation When Preferences are Non-homothetic Abstract We study the dynamics of pollution in an economic growth model with non-homothetic preferences. We characterize the forces that may drive the evolution of the income-pollution relationship along the development process. In particular, we disentangle the standard accumulation mechanism, which determines the intertemporal allocation of pollution, from a mechanism based on the non-homotheticity of preferences, which leads the intratemporal allocation of expenditure between consumption and pollution abatement to depend on income. As the economy develops and aggregate income grows up, the fraction of income devoted to abatement increases if the income elasticity of abatement is larger than unity. In this case, the pollution may decrease with income even when the elasticity of pollution with respect to abatement is smaller than the elasticity of pollution with respect to emissions. We numerically illustrate how this demand-based mechanism determines the dynamic relationship between pollution and aggregate income. Pollution, Abatement, Non-homothetic preferences, Economic growth 3 2019 74 11 5 Environmental and Resource Economics 1011 1036 Q2 D62 H23 http://link.springer.com/10.1007/s10640-019-00357-4 text/html Abstract Jaime Alonso-Carrera jalonso@uvigo.es Universidad de Vigo Carlos Miguel cmiguel@uvigo.es Universidad de Vigo Baltasar Manzano bmanzano@uvigo.es Universidad de Vigo
oai:RePEc:kap:enreec:v:74:y:2019:i:3:d:10.1007_s10640-018-0305-12019-10-22RePEc:kap:enreec
article Combining Carbon Taxation and Offset Payments: A New Approach to Climate Policy in Low-Income Countries Abstract I consider a “low-ambition” (LA) country with no current climate policy, with two sectors. Sector 1 can in principle sell an unlimited amount of carbon offsets to a bloc of “high-ambition” (HA) countries. A condition for access to the right for sector 1 to sell unlimited offsets is that sector 2 of the LA country implements a comprehensive carbon tax. When the two sectors have equal size, and public and private revenues are valued equally by the LA government, a carbon tax in sector 2, equal to the offset price for sector 1, can be incentivized. The HA country bloc then buys offsets from the LA country at a price equaling its carbon externality cost. When sector 1 is larger (smaller) than sector 2, the offset price in sector 1 will be lower (higher) than the carbon tax in sector 2. When public funds are more valuable than private funds to the LA government, the implementable carbon tax is higher, and the optimal offset price lower. The model provides a novel mechanism by which a bloc of HA countries can incentivize LA countries to implement enhanced greenhouse gas mitigation. Paris Agreement, Offset markets, Carbon taxation, Efficient climate agreements 3 2019 74 11 2 Environmental and Resource Economics 949 960 Q41 Q54 Q56 http://link.springer.com/10.1007/s10640-018-0305-1 text/html Abstract Jon Strand Jstrand1344@gmail.com The World Bank
oai:RePEc:kap:enreec:v:74:y:2019:i:3:d:10.1007_s10640-019-00355-62019-10-22RePEc:kap:enreec
article The Individual Travel Cost Method with Consumer-Specific Values of Travel Time Savings Abstract The treatment of the opportunity cost of travel time in travel cost models has been an area of research interest for many decades. Our analysis develops a methodology to combine the travel distance and travel time data with respondent-specific estimates of the value of travel time savings (VTTS). The individual VTTS are elicited with the use of discrete choice stated preference methods. The travel time valuation procedure is integrated into the travel cost valuation exercise to create a two-equation structural model of site valuation. Since the travel time equation of the structural model incorporates individual preference heterogeneity, the full structure model provides a travel cost site demand model based upon individualized values of time. The methodology is illustrated in a study of recreational birdwatching, more specifically, visits to a ‘stork village’ in Poland. We show that the usual practice of basing respondents’ VTTS on 1/3 of their wage rate is largely unfounded and propose alternatives—including a separate component of the travel cost survey aimed at valuation of respondents’ VTTS or, as a second best, asking if they wish if their journey was shorter and for those who do—use full hourly wage as an indicator of their VTTS. Opportunity cost of travel time, Individual-specific values of travel time savings, Travel cost method, Discrete choice experiment, Integration of valuation methods, Recreational birdwatching 3 2019 74 11 3 Environmental and Resource Economics 961 984 Q26 Q51 Q57 http://link.springer.com/10.1007/s10640-019-00355-6 text/html Abstract Mikołaj Czajkowski mc@uw.edu.pl University of Warsaw Marek Giergiczny mgiergiczny@wne.uw.edu.pl University of Warsaw Jakub Kronenberg kronenbe@uni.lodz.pl University of Lodz Jeffrey Englin Jeffrey.Englin@asu.edu Arizona State University
oai:RePEc:kap:enreec:v:74:y:2019:i:3:d:10.1007_s10640-019-00372-52019-10-22RePEc:kap:enreec
article Lead Pipes, Prescriptive Policy and Property Values Abstract Several recent incidences of severe waterborne lead exposure have public authorities and communities across the US rethinking their strategies to address aging water infrastructure. One common question: who should pay for updates? This paper provides evidence of positive property value capitalization effects following remediation of private lead service lines in Madison, WI. Using a 16-year panel of property transactions data and a universal and prescriptive policy change, I identify an average post-replacement price effect on the order of 3–4% of a property’s value. This implies a more than 75% average return on public and private remediation costs, suggesting homeowners strongly value the benefits of lead reduction in publicly supplied drinking water. Lead pollution, Water quality, Hedonic valuation, Diff-in-diff, Property value 3 2019 74 11 17 Environmental and Resource Economics 1355 1382 http://link.springer.com/10.1007/s10640-019-00372-5 text/html Abstract Adam Theising theising@wisc.edu University of Wisconsin-Madison
oai:RePEc:kap:enreec:v:74:y:2019:i:3:d:10.1007_s10640-019-00374-32019-10-22RePEc:kap:enreec
article Conservation Spillovers: The Effect of Rooftop Solar on Climate Change Beliefs Abstract Biased beliefs about climate change may lead to under-regulation of emissions. We study a new channel by which the public form beliefs about climate change: visible mitigation actions. By exploiting the rapid growth of rooftop solar panels, a large survey, and differences in incentives to install solar, we find that visible mitigation actions have a positive impact on belief in basic climate science. However, we also find that higher solar penetration reduces concern about the impacts of climate change, which may dampen demand for additional mitigation policy and individual abatement effort. Our results suggest that government policies that incentivize technology adoption can have subtle but important spillover effects on beliefs and other behaviors. Solar power, Green energy, Climate change, Beliefs, Motivated reasoning, Peer effects, Policy spillovers, Instrumental variables 3 2019 74 11 19 Environmental and Resource Economics 1425 1451 http://link.springer.com/10.1007/s10640-019-00374-3 text/html Abstract Graham Beattie graham.beattie@lmu.edu Loyola Marymount University Yi Han yi.han@pitt.edu University of Pittsburgh Andrea La Nauze lanauze@pitt.edu University of Pittsburgh
oai:RePEc:kap:enreec:v:74:y:2019:i:3:d:10.1007_s10640-019-00365-42019-10-22RePEc:kap:enreec
article International Fisheries Access Agreements and Trade Abstract International fishery access agreements allow fishermen from one country to harvest fish in another country’s waters. We empirically examine why countries sign fisheries access agreements with each other and compare these to the characteristics of countries that choose to undertake international trade. Using a unique global panel dataset, we show that access agreements and fish exports are driven by two key motives: a pattern of comparative advantage in fishing, which depends on fish stocks and fishing capacities; and gravity factors of economic size and distance. Our results suggest that most gravity factors work similarly for the dual pathways of agreements and exports: larger countries that are closer to each other are more likely to sign access agreements or to trade. However, the pattern of advantage is determined differently: source countries with larger fishing capacity are more likely to export fish, while source countries with lower fishing capacity are more likely to sign agreements. Access agreements, Fishing services, International fisheries, International trade 3 2019 74 11 12 Environmental and Resource Economics 1207 1238 Q22 Q27 F13 F14 F18 http://link.springer.com/10.1007/s10640-019-00365-4 text/html Abstract Tatyana Chesnokova tatyana@aoni.waseda.jp Waseda University Stephanie McWhinnie stephanie.mcwhinnie@adelaide.edu.au University of Adelaide
oai:RePEc:kap:enreec:v:74:y:2019:i:3:d:10.1007_s10640-019-00360-92019-10-22RePEc:kap:enreec
article Scarcity and Safe Operating Spaces: The Example of Natural Forests Abstract Scientists suggest placing planetary boundaries on human-induced threats to key Earth system sinks and resources. Such boundaries define a “safe operating space” on depletion and pollution. Treating any remaining “space” as a depletable economic asset allows derivation of optimal and actual rules for depletion. We apply this analysis to natural forests, and find that the critical asset is tropical forests. The size of the safe operating space and assumptions about the annual rate of tropical deforestation matter significantly. In the most critical scenario, actual depletion could occur in 11–21 years, whereas optimal depletion is 65 years. The optimal unit rental tax equates the actual price with the optimal price path. The tax rate and its amount vary with the depletion scenario and increases over time. However, if the environmental benefits of tropical forests are sufficiently large, the remaining safe operating space should be preserved indefinitely. Anthropocene, Economic depreciation, Optimal depletion, Planetary boundaries, Safe operating space, Scarcity, Tropical forest, User cost 3 2019 74 11 7 Environmental and Resource Economics 1077 1099 Q01 Q56 Q57 http://link.springer.com/10.1007/s10640-019-00360-9 text/html Abstract Edward B. Barbier Edward.barbier@colostate.edu Colorado State University Joanne C. Burgess Colorado State University
oai:RePEc:kap:enreec:v:74:y:2019:i:3:d:10.1007_s10640-019-00364-52019-10-22RePEc:kap:enreec
article Green Alliances and the Role of Taxation Abstract We examine two alternative strategies that an environmental group can embark when interacting with a firm. The first one which is already discussed in the literature is when the group campaigns against the firm. The second one which has not been modelled in the literature is when the group collaborates with the firm (green alliance) to reduce the cost of the cleaner technology. We look at the case of both options being available for the group in a setting with an environmental tax. One of the main results of the paper argues that for higher taxation the conflict scenario is more likely to happen, implying that collaboration and a more stringent environmental policy are substitutes. This identifies a previously unexamined and possibly adverse effect of public policy on environmental quality because it weakens the impact of the pollution tax on emission intensity. We also characterise the optimal tax that maximises social welfare and find that under pure conflict –when conflict is the only option for the environmentalists– optimal tax is higher than when the group can choose to act against or join forces with the firm, indicating that a less stringent environmental policy is needed in the latter scenario. Green alliances, Environmental group, Emission tax, Conflict, Collaboration 3 2019 74 11 11 Environmental and Resource Economics 1189 1206 L2 Q58 http://link.springer.com/10.1007/s10640-019-00364-5 text/html Abstract Eleni Stathopoulou eleni.stathopoulou@ntu.ac.uk Nottingham Trent University Luis Gautier lgautier@uttyler.edu University of Texas at Tyler University of Jaén
oai:RePEc:kap:enreec:v:74:y:2019:i:3:d:10.1007_s10640-019-00361-82019-10-22RePEc:kap:enreec
article Economic Freedom, Internal Motivation, and Corporate Environmental Responsibility of SMEs Abstract The effect of economic freedom on firms’ environmental responsible management is still unconcluded. We conjecture that the effects are conditional on a firm’s internal motivation and use a large-scale survey to run an empirical test. The sample consists of 4338 small and medium-sized enterprises from twelve European countries. Distinguishing between intrinsic (environmental) and extrinsic (profit) internal motivations, we find clear support that the effects of economic freedom and intrinsic motivation on corporate environmental performance interact with each other. Our findings explain the ambiguous results of previous empirical studies at the aggregate level. Corporate environmental performance, Economic freedom, Intrinsic motivation, Extrinsic motivation, Interaction 3 2019 74 11 8 Environmental and Resource Economics 1101 1123 http://link.springer.com/10.1007/s10640-019-00361-8 text/html Abstract Johan Graafland J.J.Graafland@uvt.nl Tilburg University Reyer Gerlagh r.gerlagh@tilburguniversity.edu Tilburg University
oai:RePEc:kap:enreec:v:74:y:2019:i:3:d:10.1007_s10640-019-00366-32019-10-22RePEc:kap:enreec
article Poverty-Environment Traps Abstract Remote less-favored agricultural lands (LFAL) are regions in developing countries that face severe biophysical constraints on production and are in geographical locations that have limited market access. We estimate that, across developing countries, 130 million people with high infant mortality live in such areas, and the incidence is 40%. In low-income countries, the population in remote LFAL with high infant mortality increased 25% over 2000–2010 to 57 million, and the incidence is 94%. From case study evidence, we identify the key environmental and economic characteristics that influence the ability of rural households in remote LFAL to avoid poverty. We incorporate these characteristics in a model analyzing the behavior of a representative household, which illustrates conditions that enable the household to escape subsistence-level poverty. We also show empirically for 83 developing countries that the share of rural population on remote LFAL in 2000 affects the poverty-reducing impacts of per capita income growth over 2000–2012. Developing countries, Poverty traps, Less favored agricultural lands, Market access, Rural poverty 3 2019 74 11 13 Environmental and Resource Economics 1239 1271 Q15 Q56 I32 R14 http://link.springer.com/10.1007/s10640-019-00366-3 text/html Abstract Edward B. Barbier edward.barbier@colostate.edu Colorado State University Jacob P. Hochard East Carolina University
oai:RePEc:kap:enreec:v:74:y:2019:i:3:d:10.1007_s10640-019-00359-22019-10-22RePEc:kap:enreec
article Optimal Environmental Border Adjustments Under the General Agreement on Tariffs and Trade Abstract A country choosing to adopt border carbon adjustments based on embodied emissions is motivated by both environmental and strategic incentives. We argue that the strategic component is inconsistent with commitments under the General Agreement on Tariffs and Trade (GATT). We extend the theory of border adjustments to neutralize the strategic incentive, and consider the remaining environmental incentive in a simplified structure. The theory supports border adjustments on carbon content that are below the domestic carbon price, because price signals sent through border adjustments inadvertently encourage consumption of emissions intensive goods in unregulated regions. The theoretic intuition is supported in our applied numeric simulations. Countries imposing border adjustments at the domestic carbon price will be extracting rents from unregulated regions at the expense of efficient environmental policy and consistency with international trade law. Climate policy, Border tax adjustments, Carbon leakage, Trade and carbon taxes 3 2019 74 11 6 Environmental and Resource Economics 1037 1075 F13 F18 Q54 Q56 http://link.springer.com/10.1007/s10640-019-00359-2 text/html Abstract Edward J. Balistreri ebalistr@iastate.edu Iowa State University Daniel T. Kaffine Daniel.Kaffine@colorado.edu University of Colorado Hidemichi Yonezawa Hidemichi.Yonezawa@ssb.no Statistics Norway
oai:RePEc:kap:enreec:v:74:y:2019:i:3:d:10.1007_s10640-019-00362-72019-10-22RePEc:kap:enreec
article A Semiparametric Smooth Coefficient Estimator for Recreation Demand Abstract We introduce a semiparametric smooth coefficient estimator for recreation demand data that allows more flexible modeling of preference heterogeneity. We show that our sample of visitors each has an individual statistically significant price coefficient estimate leading to clearly nonparametric consumer surplus and willingness to pay (WTP) distributions. We also show mean WTP estimates that are different in economically meaningful ways for every demographic variable we have for our sample of beach visitors. This flexibility is valuable for future researchers who can include any variables of interest beyond the standard demographic variables we have included here. And the richer results, price elasticities, consumer surplus and WTP estimates, are valuable to planners and policymakers who can easily see how all these estimates vary with characteristics of the population of interest. Consumer surplus, Recreation demand, Semiparametric model, Travel cost, Willingess to pay 3 2019 74 11 10 Environmental and Resource Economics 1163 1187 C14 Q51 http://link.springer.com/10.1007/s10640-019-00362-7 text/html Abstract Weiwei Liu w.liu1236@tcu.edu Texas Christian University Kevin J. Egan kevin.egan@utoledo.edu University of Toledo
oai:RePEc:kap:enreec:v:74:y:2019:i:3:d:10.1007_s10640-019-00378-z2019-10-22RePEc:kap:enreec
article A Personal Biography of Marty Weitzman 3 2019 74 11 1 Environmental and Resource Economics 943 947 http://link.springer.com/10.1007/s10640-019-00378-z text/html Abstract Christian Gollier christian.gollier@tse-fr.eu University of Toulouse-1
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article Improving Truthful Reporting of Polluting Firms by Rotating Inspectors: Experimental Evidence from a Bribery Game Abstract We consider a two-layered review system of environmental regulation where a polluting firm periodically self-reports its emissions to a regulatory authority. The system typically requires a third party to verify the firm’s report and, in addition, an official of the regulatory authority to spot-check. If there are potential gains from corruption, both the verifier and the official might be corruptible. Corruption is more likely in repeated-game situations, as suggested by the literature on corruption experiments. Our experimental design is motivated by the risk of under-reporting in emissions trading schemes where both the verifier and the official are corruptible and focuses on a situation with untruthful reporting and lax enforcement. Our test-bed is a three-player bribery game. We study how different types of rotation—a baseline of fixed matching, a complete rotation treatment, and two incomplete rotation treatments—affect untruthful reporting that requires collusion between three participants in a hierarchical structure. Our findings suggest that complete rotation improves significantly firms’ truthful reporting and verifiers’ truthful verification compared to situations where none is rotated, while incomplete rotation does not have such impact. In our experiment, none of the rotation treatments had a significant impact on the behavior of officials. Truthful reporting, Corruption, Rotation, Environmental regulation, Experiment 2 2020 76 7 2 Environmental and Resource Economics 201 233 C92 D83 K42 Q58 http://link.springer.com/10.1007/s10640-020-00417-0 text/html Abstract Peiyao Shen shenpy@shanghaitech.edu.cn ShanghaiTech University Regina Betz betz@zhaw.ch Zurich University of Applied Sciences Andreas Ortmann a.ortmann@unsw.edu.au UNSW Australia Rukai Gong gong.rukai@dhu.edu.cn Donghua University
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article Obituary: Karl-Göran Mäler 2 2020 76 7 1 Environmental and Resource Economics 195 200 http://link.springer.com/10.1007/s10640-020-00435-y text/html Abstract Anastasios Xepapadeas xepapad@aueb.gr Athens University of Economics and Business University of Bologna Aart Zeeuw A.J.deZeeuw@uvt.nl Tilburg University The Beijer Institute
oai:RePEc:kap:enreec:v:76:y:2020:i:2:d:10.1007_s10640-020-00425-02020-06-29RePEc:kap:enreec
article Nitrogen Tax and Set-Aside as Greenhouse Gas Abatement Policies Under Global Change Scenarios: A Case Study for Germany Abstract The ambitious climate policy objectives of the COP21 agreement require the design and the implementation of effective and efficient policy instruments. The effectiveness and efficiency of agricultural abatement options depend on regional climate and natural conditions, changes in the global economy, global agricultural markets and regional agricultural production. Thus, the assessment of abatement options requires consideration of the global scale, the market scale and the regional producer scale. We investigate two abatement options discussed controversially in literature. Both have been partially applied to reduce environmental pollution from agriculture: a tax on nitrogen and the obligatory set-aside of agricultural land. Our study provides an assessment of the ecological effectiveness and the economic efficiency of both abatement options under different global scenarios. In our policy analysis we combine three applied policy simulation models to develop an integrated economic model framework. This model framework considers the global, the national and the regional scale and consists of the global general equilibrium model DART-BIO, the partial-equilibrium model CAPRI and the regional supply model RAUMIS. In the different global scenarios, the results show that both abatement options create relatively high marginal abatement costs and that the maximally reached abated greenhouse gas emissions represent only 15% of the quantity required to fulfill the policy targets. Compared to the obligatory set-aside option, the nitrogen tax is in both scenarios the more efficient policy. With respect to impacts on production and environment, a nitrogen tax is less forecastable than the obligatory set-aside option. Our study illustrates the relevance of considering global economic and market change in the assessment of producer-targeting environmental policies. Greenhouse gas abatement, Environmental policies, Agriculture, Global scenarios, Integrated modelling 2 2020 76 7 5 Environmental and Resource Economics 299 329 http://link.springer.com/10.1007/s10640-020-00425-0 text/html Abstract Martin Henseler martin.henseler@thuenen.de Thünen Institute of Rural Studies Partnership for Economic Policy (PEP) Université du Havre Ruth Delzeit Kiel Institute for the World Economy Marcel Adenäuer OECD Sarah Baum Thünen Institute of Rural Studies Peter Kreins Thünen Institute of Rural Studies
oai:RePEc:kap:enreec:v:76:y:2020:i:2:d:10.1007_s10640-020-00428-x2020-06-29RePEc:kap:enreec
article Welfare and Trade Effects of International Environmental Agreements Abstract We analyse the welfare effects of environmental policy arising from the formation of an international environmental agreement on the participating and non-participating countries and thus shed light on the potential incentives for a country to join such an agreement. Within a N-country Q-goods general equilibrium framework under free-trade conditions, we consider unilateral and cooperative policy settings and, within the latter, country-specific and fully harmonized policies within the agreement. A key result of the paper is the emergence of a negative relationship, arising from terms of trade effects, between the welfare changes of the participating and non-participating countries following the formation of the agreement. These however do not result in a zero sum welfare outcome for the world as a whole. International environmental agreements, Environmental taxation, International trade, Pareto efficiency, Pareto improving reforms, Climate change 2 2020 76 7 6 Environmental and Resource Economics 331 345 Q56 H23 F18 http://link.springer.com/10.1007/s10640-020-00428-x text/html Abstract Catia Montagna University of Aberdeen Avanti Nisha Pinto University of Brighton Nikolaos Vlassis nvlassis@abdn.ac.uk University of Aberdeen
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article Non-constant Discounting, Social Welfare and Endogenous Growth with Pollution Externalities Abstract We analyze the effect of non-constant discounting on economic growth and social welfare in an endogenous growth model with pollution externalities. For time-consistent agents, who play a game against their future selves, the balanced growth equilibrium is compared to the case of standard exponential discounting. A decaying instantaneous discount rate leads to slower growth in a centralized economy, while its effect for a competitive economy is ambiguous. Interestingly, when comparing the planned and the competitive equilibria, the assumption of non-constant discounting may imply greater social welfare in the market equilibrium under two conditions. First, the pollution externality on utility must be large with respect to the externality on production, so that the central planner slows down growth below the growth rate in the market economy. Secondly, individuals’ degree of impatience should decrease sharply with the time distance from the present. Concerning policy implications, we observe that under log-utility policies may not be necessary, while for an isoelastic utility with an elasticity lower than one, introducing policy instruments is less effective than under constant discounting. Endogenous growth, Environmental policies, Non-constant discounting, Social welfare, Sustainability, Time-consistent solutions D91, O44, C61 2 2020 76 7 8 Environmental and Resource Economics 369 403 http://link.springer.com/10.1007/s10640-020-00430-3 text/html Abstract Francisco Cabo pcabo@eco.uva.es Universidad de Valladolid Guiomar Martín-Herrán guiomar@eco.uva.es Universidad de Valladolid María Pilar Martínez-García pilarmg@um.es Universidad de Murcia, Campus del Espinardo
oai:RePEc:kap:enreec:v:76:y:2020:i:2:d:10.1007_s10640-020-00424-12020-06-29RePEc:kap:enreec
article Technical Change and Green Productivity Abstract When technologies could be “dirty” and “clean” in the context of green development, technical change does not necessarily mean (green) productivity growth. This paper studies the nonlinear impact of technical change on green productivity in China by applying a panel smooth transition regression approach with a panel data set of 284 prefecture-level cities from 2004 to 2015. Green productivity is measured by the meta-frontier Malmquist–Luenberger productivity growth (MML) index. Technical change is considered in three dimensions: indigenous technical change indicated by the stock of knowledge based on patents, technology transfers from foreign direct investment (FDI), and absorptive capacity. We find a non-linear relationship between technical change and green productivity contingent on specific economic situations and the city’s endowment of natural resources. In general, indigenous technical change shows an adverse effect on green productivity in China, which is much more prominent in the resource-dependent cities than in the non-resource-dependent cities. Technology transfers from FDI may either improve or hinder green productivity growth as economic situations change, while absorptive capacity has a small but positive effect. Also, these two effects are affected by the city’s endowment of natural resources. Accordingly, we discuss some policy implications. Technical change, Green productivity, PSTR, FDI, Absorptive capacity 2 2020 76 7 4 Environmental and Resource Economics 271 298 O33 O44 Q55 Q56 http://link.springer.com/10.1007/s10640-020-00424-1 text/html Abstract Peng Li li58590247@hotmail.com Institute of Industrial Economics Yaofu Ouyang yaofuouyang@gmail.com Institute of Economics
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article Insurance and Forest Rotation Decisions Under Storm Risk Abstract Forests are often threatened by storms; and such a threat is likely to rise due to climate change. Using private forest insurance as a vehicle to fund resilience and adaptation emerge as a policy recommendation. Hence the forest owners would have the possibility to consider insurance when defining their forest management practices. In this context, we analyze the impact of the forest owner’s insurance decision on forest management under storm risk. We extend the Faustmann optimal rotation model under risk, first, considering the forest owner’s risk preferences, and second, integrating the decision of insurance. With this analytical model, we show that as the insurance coverage increases, the rotation length increases independently of the forest owner’s risk aversion. In addition, we identify some cases where it may be optimal for the forest owner to not adopt insurance contract. Finally, we prove that a public transfer, reducing the insurance premium, may encourage the forest owner to insure. Faustmann value, Insurance, Storm risk, Rotation length, Public transfer 2 2020 76 7 7 Environmental and Resource Economics 347 367 D81 G22 Q23 http://link.springer.com/10.1007/s10640-020-00429-w text/html Abstract Patrice Loisel patrice.loisel@inrae.fr MISTEA, Université Montpellier, INRAE, Institut Agro Marielle Brunette marielle.brunette@inrae.fr Université de Lorraine, Université de Strasbourg, AgroParisTech, CNRS, INRAE, BETA Climate Economic Chair Stéphane Couture stephane.couture@inrae.fr MIAT, INRAE, University of Toulouse
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article Adoption of Environment-Friendly Agricultural Practices with Background Risk: Experimental Evidence Abstract Agriculture is one of the economic sectors most exposed to exogenous risks such as climate hazards and price volatility on agricultural markets. Agricultural policies targeting the adoption of environment-friendly but potentially risk-increasing practices cannot ignore this challenge. Farmers have indeed to decide if they take the foreground risk associated with the adoption of environment-friendly practices, while simultaneously facing exogenous background risk beyond their control. Using a theoretical model and a public good experiment, we analyse the adoption of agri-environmental practices and the effect of agri-environmental subsidies in a context where risks are both foreground and background. While most of the literature on background risk focuses on its impact on individual decisions, we analyse the influence of background risk in a context of strategic uncertainty (contribution to a public good). The results highlight the potential synergies between greening the CAP and supporting risk management. We find that background risk discourages the adoption of green practices, although it affects all farmland independently from the farmer’s choice of practices (environment friendly or conventional). An incentive payment per hectare of land farmed with green practices increases the adoption of risk-increasing practices but is significantly less effective in the presence of background risk. Common agricultural policy, Agri-environmental measures, Background risk, Lab experiment, Risk aversion, Public good game 2 2020 76 7 9 Environmental and Resource Economics 405 428 C93 D81 Q18 Q12 http://link.springer.com/10.1007/s10640-020-00431-2 text/html Abstract Marianne Lefebvre marianne.lefebvre@univ-angers.fr Université d′Angers Estelle Midler Osnabrück University Philippe Bontems University of Toulouse Capitole
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article Environmental Inequality and Economic Valuation Abstract I study how the economic value of a heterogeneously distributed environmental public good depends on how the endowment with this good and income are distributed. I find that the effect of environmental inequality on the societal willingness to pay (WTP) for the environmental good is determined both by its substitutability and by the correlation of its provision with income. Specifically, environmental inequality decreases societal WTP for substitutes, but this effect is reversed if the environmental good is a complement or distributed strongly in favour of richer households. Moreover, I show that richer households living in places where environmental good endowment is high increases (decreases) societal WTP if and only if the environmental good is a substitute for (complement to) consumption goods. I propose novel adjustment factors for structural benefit transfer to control for differences in the spatial distribution of environmental goods. Using forest preservation in Poland as an empirical example, I find that societal WTP is up to 4% higher for equal access to forests and up to 8% higher for an equal distribution of both income and access to forests. Inequality, WTP, Heterogeneously distributed public good, Spatial distribution, Benefit transfer, Forest ecosystem services 2 2020 76 7 3 Environmental and Resource Economics 235 270 D63 Q51 http://link.springer.com/10.1007/s10640-020-00423-2 text/html Abstract Jasper N. Meya jasper.meya@idiv.de Leipzig University German Centre for Integrative Biodiversity Research (iDiv) Halle-Jena-Leipzig
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article Assessing the Role of Institutions in Limiting the Environmental Externalities of Economic Growth Abstract Emissions of pollutants tend to be procyclical as they generally increase with economic growth. However, as government policy has a role to play in the mitigation of the environmental consequences of economic activity, the quality of institutions may influence the procyclicality of pollution and reduce the environmental cost of economic growth. Based on the assumption that changes in emissions are stronger at earlier stages of development, we develop a non-linear framework and confirm first the presence of income-related threshold effects in the relationship between pollution (CO $$_2$$ 2 and greenhouse gas emissions) and growth, for a panel of 142 countries over a period spanning from 1960 to 2017. We also find that institutional quality influences this relationship, as the quality of institutions lowers the value of the threshold and the degree of procyclicality of emissions. These results bring therefore evidence that higher institutional quality can attenuate the environmental externalities of economic growth. CO $$_2$$ 2 emissions, GHG emissions, Economic growth, Institutions 2 2020 76 7 10 Environmental and Resource Economics 429 445 C33 O44 Q56 Q58 http://link.springer.com/10.1007/s10640-020-00432-1 text/html Abstract Stephane Dées stephane.dees@banque-france.fr Banque de France and Univ. Bordeaux
oai:RePEc:kap:enreec:v:71:y:2018:i:4:d:10.1007_s10640-017-0193-92018-11-04RePEc:kap:enreec
article The Impact of Resource Uncertainty and Intergroup Conflict on Harvesting in the Common-Pool Resource Experiment Abstract How do resource uncertainty and intergroup conflict affect intragroup cooperation over resources in the common pool dilemmas? Does a danger of sudden resource depletion encourage random acts of violence? There are concerns that climate change will escalate conflicts over, and the scarcity of, renewable resources, which are already under threat or in a state of decline. However, we know surprisingly little about the impact of uncertainty on intergroup conflict over resources. In this paper, we present experimental evidence from a mixed design experiment with two-between-group factors: (1) the presence (or absence) of shocks that can destroy a part of resources; and (2) the availability of intergroup conflict. We find that random shocks encourage resource conservation within groups. The positive impact of resource uncertainty on resource conservation disappears in the presence of conflict. It seems that subjects protect themselves from resource exhaustion in the presence of shocks by engaging in conflict and taking resources from the out-group instead of reducing extraction. In general, conflict promotes intragroup cooperation, but this is conditional on the outcomes of past conflicts. In particular, groups harvest more after wins, and only reduce extraction after losing resources in conflict. Climate, Conflict, Common-pool resources, Harvesting 4 2018 71 12 8 Environmental and Resource Economics 1001 1025 http://link.springer.com/10.1007/s10640-017-0193-9 text/html Abstract Karolina Safarzynska ksafarzynska@wne.uw.edu.pl Warsaw University
oai:RePEc:kap:enreec:v:71:y:2018:i:4:d:10.1007_s10640-017-0190-z2018-11-04RePEc:kap:enreec
article Fractional Integration Versus Structural Change: Testing the Convergence of $$\hbox {CO}_{2}$$ CO 2 Emissions Abstract This paper assesses the stochastic convergence of relative $$\hbox {CO}_{2}$$ CO 2 emissions within 28 OECD countries over the period 1950–2013. Using the local Whittle estimator and some of its variants we assess whether relative per capita $$\hbox {CO}_{2}$$ CO 2 emissions are long memory processes which, although highly persistent, may revert to their mean/trend in the long run thereby indicating evidence of stochastic convergence. Furthermore, we test whether (possibly) slow convergence or the complete lack of it may be the result of structural changes to the deterministics of each of the relative per-capita emissions series by means of the tests of Berkes et al. (Ann Stat 1140–1165, 2006) and Mayoral (Oxford Bull Econ Stat 74(2):278–305, 2012). Our results show relatively weak support for stochastic convergence of $$\hbox {CO}_2$$ CO 2 emissions, indicating that only between 30 and 40% of the countries converge to the OECD average in a stochastic sense. This weak evidence disappears if we enlarge the sample to include 4 out of the 5 BRICS, indicating that our results are not robust to the inclusion of countries which are experiencing rates of growth which are far larger than those of the OECD members. Our results also decisively indicate that a slow or lack of convergence is not the results of a structural break in the relative $$\hbox {CO}_{2}$$ CO 2 emissions series. Fractional integration, Local Whittle estimator, Structural change 4 2018 71 12 5 Environmental and Resource Economics 923 968 C12 C14 Q50 Q54 http://link.springer.com/10.1007/s10640-017-0190-z text/html Abstract Marco R. Barassi m.r.barassi@bham.ac.uk University of Birmingham Nicola Spagnolo Brunel University London ISSM, CNR National Australian University Yuqian Zhao University of Birmingham
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article The Representative Consumer Approximation Bias in Discrete Choice Welfare Analysis Abstract Discrete choice welfare analysis is essential in non-market valuation to accompany studies using choice experiments and recreation choice models. McFadden (in: Melvin, Moore, Riezman (eds) Trade, theory and econometrics: essays in honor of John S. Chipman, Routledge, London, 1999) shows that discrete choice welfare measures derived by the common representative consumer approach can be biased under nonlinear income effects, and the percentage bias increases monotonically with the size of quality improvement. We present contrary results that percentage measurement errors in such welfare measures can go either direction and provide conditions under which the direction of bias can be identified. We also show that price and non-price variables play different roles in discrete choice welfare analysis. Welfare analysis, Discrete choice models, Nonlinear income effects 4 2018 71 12 6 Environmental and Resource Economics 969 984 C25 D60 http://link.springer.com/10.1007/s10640-017-0191-y text/html Abstract Min Qiang Zhao kent_zhao@xmu.edu.cn Xiamen University Ju-Chin Huang Ju-Chin.Huang@unh.edu University of New Hampshire
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article Oil Abundance and Income Inequality Abstract The paper empirically investigates the impact of natural resource abundance, in particular oil, on income disparities. It employs common correlated effects pooled mean group methodology for estimation to account for the cross-country heterogeneity and cross-section dependence in the oil-inequality nexus. In a sample of developed and developing countries, we find that oil abundance as well as oil dependence reduce income inequality. This inequality-reducing effect is highly likely to operate from better education attainments and improved health status due to oil booms. Oil, Income inequality, Heterogeneous panels 4 2018 71 12 1 Environmental and Resource Economics 825 848 O13 O15 Q33 http://link.springer.com/10.1007/s10640-017-0185-9 text/html Abstract Dong-Hyeon Kim dhk1015@korea.ac.kr Korea University Shu-Chin Lin sclin@skku.eduw SungKyunKwan University
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article Appropriate Payment Vehicles in Stated Preference Studies in Developing Economies Abstract Selecting appropriate payment vehicles is critical for the perceived consequentiality and incentive compatibility of stated preferences surveys. We analyze the performance of three different payment vehicles in a Malaysian case of valuing wetland conservation. Two are well-known: voluntary donations and income taxes. The third is new: reductions in government subsidies for daily consumer goods. Using donations is common, but this payment vehicle is prone to issues of free-riding. An income tax usually has favorable properties and is commonly used in environmental valuation. However, in Malaysia as well as in many other low- to middle-income economies, large proportions of people do not pay income taxes, putting the validity of this payment vehicle into question. Instead, citizens in Malaysia and many other countries benefit from subsidies for a range of consumer goods. We find that price sensitivity is higher and the unexplained variance smaller when using subsidies rather than donations or income taxes. Importantly, this approach translates into completely different conclusions concerning policy advice. Our results suggest that in developing countries, using reduced subsidies as a payment vehicle may have favorable properties in terms of improved payment consequentiality compared to alternative payment vehicles, thus enhancing the external validity of stated preference surveys. Developing countries, Discrete choice experiment, Incentive compatibility, Payment consequentiality, Random parameter logit model, Wetland conservation 4 2018 71 12 10 Environmental and Resource Economics 1053 1075 http://link.springer.com/10.1007/s10640-017-0196-6 text/html Abstract Suziana Hassan suzi@upm.edu.my University of Copenhagen Universiti Putra Malaysia Bintulu Campus Søren Bøye Olsen sobo@ifro.ku.dk University of Copenhagen Bo Jellesmark Thorsen bjt@ifro.ku.dk University of Copenhagen University of Copenhagen
oai:RePEc:kap:enreec:v:71:y:2018:i:4:d:10.1007_s10640-017-0186-82018-11-04RePEc:kap:enreec
article The Value of Air Quality in Chinese Cities: Evidence from Labor and Property Market Outcomes Abstract Using a dual-market sorting model of workers’ location decisions, this paper studies the capitalization of air pollution in wages and property prices across Chinese cities. To account for endogeneity of air pollution in the determination of wages and property prices, we exploit quasi-experimental variation in air quality induced by a policy subsidizing coal-based winter heating in northern China, and document a discontinuity in average air quality for cities located north and south of the policy boundary. Using data for all 288 Chinese cities in 2011, we estimate an equilibrium relationship between wages and house prices for the entire system of Chinese cities, and specify a regression discontinuity design to quantify how variation in air quality induced by the policy affects this relationship locally. Our preferred estimates of the elasticity of wages and house prices with respect to $$\text {PM}_{10}$$ PM 10 concentration are 0.53 and $${-}$$ - 0.71 respectively. At the average of our sample, the willingness to pay for a unit reduction in $$\text {PM}_{10}$$ PM 10 concentration is CNY 261.28 ( $$\simeq $$ ≃ USD 40.50), with a significant share reflected in labor market outcomes. Hedonic model, Air pollution, Labor market, House prices, Local public goods, Regression discontinuity 4 2018 71 12 2 Environmental and Resource Economics 849 874 H41 J31 R31 Q53 http://link.springer.com/10.1007/s10640-017-0186-8 text/html Abstract Xuan Huang Peking University Bruno Lanz bruno.lanz@unine.ch University of Neuchâtel
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article Preference for Landings’ Smoothing and Risk of Collapse in Optimal Fishery Policies: The Ibero-Atlantic Sardine Fishery Abstract Several world fish stocks are being explored at unsustainable levels and require management plans to rebuild stock abundance. Defining a management plan is, however, a complex task that entails multidisciplinary work. In fact, while it requires solid scientific knowledge of fish stocks, the inclusion of economic and social objectives is crucial to a successful management implementation. In this paper we develop an age-structured bioeconomic model where the objective function is modified to accommodate preferences from different stakeholders. In particular, we consider important characteristics that a management plan should take into account: profit maximization, fishermen’s preference for reducing landings’ fluctuations and risk of fishery collapse. Modeling preferences for reducing landings’ fluctuations is accomplished by defining a utility function with aversion to intertemporal income fluctuations. Building upon biology literature, we model precautionary concerns by incorporating a probability of collapse that depends on current spawning biomass. We illustrate how this framework is able to assist in the analysis and design of harvest control rules applying it to the Ibero-Atlantic sardine stock. Fishery management, Optimal harvesting, Age-structured model, Stock collapse, Harvest control rules, Bioeconomic model, Multiple objectives 4 2018 71 12 3 Environmental and Resource Economics 875 895 http://link.springer.com/10.1007/s10640-017-0187-7 text/html Abstract Renato Rosa renato.rosa@novasbe.pt Universidade Nova de Lisboa Universidade Nova de Lisboa João Vaz Universidade Nova de Lisboa University of Wyoming Rui Mota Universidade Nova de Lisboa Alexandra Silva IPMA—Instituto Português do Mar e da Atmosfera
oai:RePEc:kap:enreec:v:71:y:2018:i:4:d:10.1007_s10640-017-0195-72018-11-04RePEc:kap:enreec
article Decentralization Effects in Ecological Fiscal Transfers: A Bayesian Structural Time Series Analysis for Portugal Abstract Portugal has a unitary system in which the central government transfers funds to lower government levels for their public functions. In 2007, Portugal introduced Ecological Fiscal Transfers (EFT), where municipalities receive transfers for hosting protected areas (PA). We study whether introducing EFT in Portugal incentivized municipalities to designate PA and has led to a decentralization of conservation decisions. We employ a Bayesian structural time series approach to estimate the effect of introducing EFT in comparison to a simulated counterfactual time series. Quantitative results show a significant increase in the ratio of municipal and national PA designations following Portugal’s EFT introduction—which we infer to be a causal consequence. The analysis furthermore places emphasis on the importance of relevant municipal conservation competencies for the functioning of the instrument. Results have important implications for conservation policy-making in terms of allocating budgets and competencies in multi-level governments. Bayesian structural time series, Ecological Fiscal Transfers, Fiscal federalism, Municipal conservation competencies, Portugal C32, H41, H72, Q57 4 2018 71 12 9 Environmental and Resource Economics 1027 1051 http://link.springer.com/10.1007/s10640-017-0195-7 text/html Abstract Nils Droste nils.droste@ufz.de UFZ – Helmholtz Centre for Environmental Research Martin-Luther University Halle-Wittenberg Claudia Becker claudia.becker@wiwi.uni-halle.de Martin-Luther University Halle-Wittenberg Irene Ring irene.ring@tu-dresden.de Technische Universität Dresden Rui Santos rfs@fct.unl.pt Universidade Nova de Lisboa
oai:RePEc:kap:enreec:v:71:y:2018:i:4:d:10.1007_s10640-017-0189-52018-11-04RePEc:kap:enreec
article The Impact of Climate Change on Agriculture: Findings from Households in Vietnam Abstract This paper examines farm household-level impacts of climate change by examining the relationship between climatic variables and Vietnamese agricultural output. The Ricardian technique is applied with panel data which accounts for both adaptation strategies and household characteristics. This study proposes a two-stage Hsiao model to correct for collinearity between climatic variables and individual effects. The results show that in the dry season, increases in temperatures are beneficial to all farms in the warmer southern regions, while increases in precipitation will damage only irrigated farms in the Central and South regions. The impact of higher temperature in the wet season is similar, except that it will negatively affect net revenue of irrigated farms in the long run. More rainfall in the wet season will increase net revenue in the North region only. Finally, this study combines the estimated results with future climate scenarios to predict how future changes in climate will affect farmers on aggregate. Climate change, Agriculture, Ricardian model, Vietnam 4 2018 71 12 4 Environmental and Resource Economics 897 921 Q54 Q10 http://link.springer.com/10.1007/s10640-017-0189-5 text/html Abstract Trong Anh Trinh tronganh.trinh@rmit.edu.au Royal Melbourne Institute of Technology
oai:RePEc:kap:enreec:v:71:y:2018:i:4:d:10.1007_s10640-017-0192-x2018-11-04RePEc:kap:enreec
article A Cautionary Note on the Use of Benefit Metrics for Cost-Effective Conservation Abstract Cost-effective land conservation techniques, such as optimization, have the potential to contribute substantially to the provision of many important environmental benefits, such as biodiversity protection, flood control, food security, water quality, and reduction of greenhouse gas emissions. There has been a recent push for conservation organizations to adopt project selection optimization approaches such as binary linear programming. The metrics used to measure the benefits of a project however, are often poorly defined in that they do not directly compute a value. These scores represent normalized measurements of underlying values that are likely log-normally distributed. Applying such metrics in optimization will tend to undervalue high-benefit projects and select a suboptimal portfolio of projects relative to simpler approaches. This suboptimal performance can lead to losses in efficiency as high as 30%. We propose a hybrid optimization heuristic that can improve performance and, additionally, provide conservation professionals with more flexibility and freedom to select conservation projects at their discretion—potentially overcoming a substantial real-world adaptation hurdle. Conservation optimization, Binary linear programming, Environmental index 4 2018 71 12 7 Environmental and Resource Economics 985 999 http://link.springer.com/10.1007/s10640-017-0192-x text/html Abstract Jacob R. Fooks jacob.fooks@ers.usda.gov U.S. Department of Agriculture Economic Research Service Kent D. Messer messer@udel.edu University of Delaware Maik Kecinski kecinski@ualberta.ca University of Alberta
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article Cultured Meat: Promises and Challenges Abstract Cultured meat involves producing meat from animal cells, not from slaughtered animals. This innovation has the potential to revolutionize the meat industry, with wide implications for the environment, health and animal welfare. The main purpose of this paper is to stimulate some economic research on cultured meat. In particular, this paper includes a prospective discussion on the demand and supply of cultured meat. It also discusses some early results on the environmental impacts of cultured meat, emphasizing the promises (e.g., regarding the reduction in land use) but also the uncertainties. It then argues that cultured meat is a moral improvement compared to conventional meat. Finally, it discusses some regulatory issues, and the need for more public support to the innovation. Meat, Cultured meat, Food innovation, Meat consumption, Meat production, Climate change, Pollution, Land use, Animal welfare, Regulation 1 2021 79 5 3 Environmental and Resource Economics 33 61 Q16 Q18 Q52 Q11 L31 L66 http://link.springer.com/10.1007/s10640-021-00551-3 text/html Abstract Nicolas Treich nicolas.treich@inrae.fr University Toulouse Capitole
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article Reflections on the Dasgupta Review on the Economics of Biodiversity Abstract The Dasgupta Review provides a rich overview of the economics of biodiversity, paints a bleak picture of the current state of biodiversity, and is a call to arms for action in anticipation of the CBD COP 15. The Review takes a global perspective aimed at the high level of international and national policy on biodiversity, while elucidating the very local nature of biodiversity threats and values. The approach is orthodox in its diagnosis via the language of externalities, natural capital, shadow pricing, asset returns, and the suite of remedial policies that follow. Yet, at its centre is an ‘unorthodox’ perspective: the economy is embedded in the environment and growth is limited. We offer reflections on this framing in light of its objectives for biodiversity. The limits to growth message will be criticised and applauded in equal measure by different economists. The central place of valuation and the aggregated concept of biodiversity will draw criticism from outside the discipline. Yet the Review provides a foundation for biodiversity economics, and its largely orthodox framing may invoke the intended step change in the mainstream approach to economic growth. Biodiversity, Dasgupta Review, Economic growth, Natural capital, Limits to growth 1 2021 79 5 1 Environmental and Resource Economics 1 23 http://link.springer.com/10.1007/s10640-021-00560-2 text/html Abstract Ben Groom b.d.groom@exeter.ac.uk University of Exeter Business School Zachary Turk London School of Economics and Political Science
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article Air Pollution, Health, and Avoidance Behavior: Evidence from South Korea Abstract Using detailed data on the beneficiaries of the Korean National Health Insurance Service (c.2006–2015), this paper estimates the health effects of air pollution in South Korea while controlling for avoidance behaviors. In particular, we investigate changes in respiratory hospitalization rates due to increases in PM $$_{10}$$ 10 and O $$_{3}$$ 3 concentrations. To address the endogeneity of air pollution, this paper applies the historical average concentration of air pollution, which includes rich information about the meteorological and geographical factors that affect regional air pollution levels, as an instrumental variable and compares the results with other count data models. We find that a 10 $$\upmu$$ μ g/m $$^{3}$$ 3 increase in PM $$_{10}$$ 10 and a 10 ppb increase in O $$_{3}$$ 3 lead to an increase in daily respiratory hospital visits of up to 10.39% [95% confidence interval (CI) 4.04–16.80] and 10.93% (95% CI 9.23–12.63), resulting in additional health care costs of US$67 million and US$70 million, respectively. This paper also shows that the effects of PM $$_{10}$$ 10 and O $$_{3}$$ 3 are elevated in highly populated cities, children, and patients without chronic respiratory diseases. Air pollution, Avoidance behavior, Respiratory hospital visits 1 2021 79 5 4 Environmental and Resource Economics 63 91 I12 Q51 Q53 http://link.springer.com/10.1007/s10640-021-00553-1 text/html Abstract Moon Joon Kim moonjoonk@gmail.com Korea University
oai:RePEc:kap:enreec:v:79:y:2021:i:1:d:10.1007_s10640-021-00556-y2021-04-27RePEc:kap:enreec
article Current Air Pollution and Willingness to Pay for Better Air Quality: Revisiting the Temporal Reliability of the Contingent Valuation Method Abstract In this study we examine whether and why preferences for environmental quality improvements depend on current quality. We conducted contingent valuation surveys over the course of a year in Nanjing, China, and find that the willingness to pay for future air quality improvements increases by 0.693% for every 1% increase in the current PM2.5 level. Therefore, the issue of "when" a valuation study is conducted has important implications for the estimation of benefits, and further deserves consideration when applying benefit transfer methods. One possible explanation for this result is projection bias, which arises when people exaggerate the extent to which future preferences will align with current tastes. Temporal reliability, Contingent valuation, Decision-making, Current air quality, Rational and psychological mechanisms 1 2021 79 5 7 Environmental and Resource Economics 135 168 Q51 Q53 D91 http://link.springer.com/10.1007/s10640-021-00556-y text/html Abstract Jie He jie.he@usherbrooke.ca Université de Sherbrooke Bing Zhang zhangb@nju.edu.cn University of Jinan Nanjing University
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article Voluntary Participation in International Environmental Agreements and Authority Structures in a Federation: A Note Abstract We examine how a voluntary participation decision in international environmental negotiations affects the endogenous authority structure in a federation. In our model, the federal government of each country decides whether to delegate both the decision to participate in a negotiation that determines the abatement level of pollution (the level of the public good), and the negotiation itself, to a regional government of the polluter region. We show that there exists a subgame perfect equilibrium in which none of the federal governments chooses delegation, which is quite different from the authority structure in the absence of a voluntary participation decision. The main contribution is to explain why the federal government has an incentive not to delegate decisions to a regional government Delegation, International environmental agreements, Nash bargaining, Negotiation, Participation, Public goods 1 2021 79 5 2 Environmental and Resource Economics 25 32 C78 D62 H41 H77 http://link.springer.com/10.1007/s10640-021-00550-4 text/html Abstract Ryusuke Shinohara ryusukes@hosei.ac.jp Hosei University
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article A Machine Learning Analysis of the Recent Environmental and Resource Economics Literature Abstract We use topic modeling to study research articles in environmental and resource economics journals in the period 2000–2019. Topic modeling based on machine learning allows us to identify and track latent topics in the literature over time and across journals, and further to study the role of different journals in different topics and the changing emphasis on topics in different journals. The most prevalent topics in environmental and resource economics research in this period are growth and sustainable development and theory and methodology. Topics on climate change and energy economics have emerged with the strongest upward trends. When we look at our results across journals, we see that journals have different topical profiles and that many topics mainly appear in one or a few selected journals. Further investigation reveal latent semantic structures across research themes that only the insider would be aware. Environmental and resource economics, Latent Dirichlet allocation, Literature review, Machine learning, Textual analysis, Topic modeling 1 2021 79 5 5 Environmental and Resource Economics 93 115 http://link.springer.com/10.1007/s10640-021-00554-0 text/html Abstract Sturla F. Kvamsdal sturla.kvamsdal@snf.no SNF - Centre for Applied Research at NHH Ivan Belik ivan.belik@nhh.no NHH Norwegian School of Economics Arnt Ove Hopland arnt.hopland@nhh.no NHH Norwegian School of Economics Yuanhao Li yuanhao.li@nhh.no NHH Norwegian School of Economics
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article Study on the Interactive Relationship Between Marine Economic Growth and Marine Environmental Pressure in China Abstract To have a clear understanding of the interactive relationship between the marine economy and marine environment in China and to further promote the sustainable development of China’s oceans, this study evaluates the level of coordinated development between China’s marine economy and marine environment by defining and calculating marine eco-efficiency. Next, it uses the Tapio decoupling model to analyze the decoupling relationships among the marine environment, its determinant factors, and the marine economy. This reveals the nature and development trend of the internal relationship between dynamic changes in the marine economy and the marine environment. The results show that, during the study period, there is improvement in the marine eco-efficiencies of 11 Chinese coastal provinces and cities, and there exists a spatial pattern comprising higher marine eco-efficiency in the central regions and lower in the southern and northern ones. Further, the decoupling relationship between the marine economy and marine environment in 11 coastal areas mainly showed a decline from 2006 to 2015. Massive investment of marine resources was not only the major contributor to marine economic growth but also the main factor exerting pressure on the marine environment. Marine economy, Marine environment, Marine eco-efficiency, Decoupling, China 1 2021 79 5 6 Environmental and Resource Economics 117 133 http://link.springer.com/10.1007/s10640-021-00555-z text/html Abstract Yiyao Wang Liaoning Normal University Caizhi Sun suncaizhi@lnnu.edu.cn Liaoning Normal University Wei Zou Liaoning Normal University Liaoning Normal University
oai:RePEc:kap:enreec:v:75:y:2020:i:3:d:10.1007_s10640-019-00394-z2020-12-20RePEc:kap:enreec
article Regulatory Avoidance and Spillover: The Effects of Environmental Regulation on Emissions at Coal-Fired Power Plants Abstract The Clean Air Act’s National Ambient Air Quality Standards (NAAQS) and New Source Review (NSR) permitting work in conjunction to improve ambient air quality in the United States. However, all previous studies of the NAAQS ignore this joint nature and focus solely on the effects of NAAQS non-attainment designation on various economic outcomes. Additionally, previous studies ignore the potentiality of regulatory spillover, i.e., abatement for one pollutant decreasing emissions of other, non-regulated pollutants, from the NAAQS. In this paper, we first examine the actions of plant managers who face varying degrees of regulatory oversight. We then estimate the differential effects of the NAAQS and NSR on emissions at coal-fired power plants, while also examining spillover effects. Collectively, this study adds to the literature on environmental regulation in two key ways. First, we use comprehensive data on facility-level NSR permit receipt to examine the differential effects of the NAAQS on plants regulated jointly by NSR and NAAQS non-attainment and those plants regulated only by NAAQS non-attainment. We investigate how the monitoring of areas with non-attainment designation leads to the avoidance of regulatory scrutiny by local plants and find that regulated facilities not subjected to the technological requirements of NSR decreased $$\hbox {NO}_{\mathrm{{x}}}$$ NO x emissions by 20%. We also examine the mechanisms through which this abatement occurs, e.g., technology, use of cleaner inputs. Second, we identify the spillover effects of the NAAQS for certain pollutants by examining the effects of disparate non-attainment designations from the emissions in question. We find a significant decrease in $$\hbox {NO}_{\mathrm{{x}}}$$ NO x and $$\hbox {CO}_{{2}}$$ CO 2 emissions as a result of carbon monoxide and $$\hbox {SO}_{{2}}$$ SO 2 -affected non-attainment designation, respectively. We provide evidence that regulatory spillover in this case is the result of different emission control strategies. Co-benefits, Coal-fired power plants, National Ambient Air Quality Standards, New Source Review, Nitrogen oxide, Spillover, Sulfur dioxide 3 2020 75 3 1 Environmental and Resource Economics 387 420 D21 L51 Q53 Q58 http://link.springer.com/10.1007/s10640-019-00394-z text/html Abstract Zach Raff raffz@uwstout.edu University of Wisconsin-Stout Jason M. Walter walterja@uwstout.edu University of Wisconsin-Stout
oai:RePEc:kap:enreec:v:82:y:2022:i:4:d:10.1007_s10640-022-00694-x2022-07-18RePEc:kap:enreec
article On the Good and Bad of Natural Resource, Corruption, and Economic Growth Nexus Abstract The empirical finding that countries endowed with vast reserves of natural resources are expected to experience slower economic growth – the resource curse hypothesis – has sparked debate in the literature about whether natural resources are a curse or a boon. In this study, we re-investigate the natural resource, corruption and growth nexus by using a relatively longer dataset for a panel of countries. Unlike previous attempts, we take into account the potential endogeneity and asymmetric effect in our analysis by applying a recently developed panel quantile estimator. We also focus on the role of corruption in influencing the impact of natural resources on economic growth. Broadly the findings are indicative of an asymmetric effect of resources as the sign and magnitude of natural resources’ impact on economic growth varies over different income quantiles. Although the overall results are mixed, but the results based on fuel export and oil–gas rents as measures of resource endowment are consistent with the ‘resource curse’ hypothesis. Nonetheless, the findings suggest that corruption is critical in determining the marginal impact of natural resources on growth and in many cases, it has effectively transformed the negative effects of natural resources to positive effects in low-to-middle-income countries. Resource curse, Economic growth, Corruption, Panel quantile regression 4 2022 82 8 5 Environmental and Resource Economics 889 922 O13 Q33 D73 http://link.springer.com/10.1007/s10640-022-00694-x text/html Abstract Chandan Sharma csharma@iiml.ac.in Indian Institute of Management Lucknow Ritesh Kumar Mishra Ritesh.Mishrakr@gmail.com University of Delhi
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article Continuous Versus Discrete Time in Dynamic Common Pool Resource Game Experiments Abstract We study the impact of discrete versus continuous time on the behavior of agents in the context of a dynamic common pool resource game. To this purpose, we consider a linear quadratic model and conduct a lab experiment in which agents exploit a renewable resource with an infinite horizon. We use a differential game for continuous time and derive its discrete time approximation. In the single agent setting, we fail to detect, on a battery of indicators, any difference between agents’ behavior in discrete and continuous time. Conversely, in the two-player setting, significantly more agents can be classified as myopic and end up with a low resource level in discrete time. Continuous time seems to allow for better cooperation and thus greater sustainability of the resource than does discrete time. Common pool resource, Differential games, Experimental economics, Continuous time, Discrete time C01, C73, C91, C92, Q20 4 2022 82 8 8 Environmental and Resource Economics 985 1014 http://link.springer.com/10.1007/s10640-022-00700-2 text/html Abstract M. Djiguemde Institut Agro D. Dubois Institut Agro A. Sauquet alexandre.sauquet@inrae.fr Institut Agro M. Tidball Institut Agro
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article A Model of Quota Prices in a Multispecies Fishery with “Choke” Species and Discarding Abstract Using a two-stage optimisation model, we simulate the determination of market-clearing quota lease prices in a multispecies fishery. Assuming fixed proportions technologies, we find that equilibrium quota prices are jointly determined. Price equilibria are sensitive to both the number of quota species and the heterogeneity of the fleet, with corner prices observed where there are a relatively large number of species. Where the fleet is very heterogeneous, quota prices fail to capture all rent as resource rent and inframarginal rents are earned by some vessels. If there is excess demand for quota (for example, as a result of the exhaustion of the quota for a “choke” species) bidding up of the quota price causes all other quota prices to fall. This can result in some vessels starting to earn inframarginal rents even though they are discarding part of the catch. We also use the model to examine the impact of a “deemed value” charge for over-quota landings. ITQs, Quota prices, Quota markets, Multispecies fisheries, Discarding 4 2022 82 8 2 Environmental and Resource Economics 825 846 Q22 Q28 http://link.springer.com/10.1007/s10640-022-00689-8 text/html Abstract Aaron Hatcher aaron.hatcher@gmx.com University of Portsmouth
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article Welfare Effects of Changing Technological Efficency in Regulated Open-Access Fisheries Abstract Small-scale fisheries often operate under conditions of regulated open access; that is, the fishery is subject to natural or regulatory constraints on fishing technology, including regulations of fishing gear and fishing practices, but typically there is no direct regulation of catches. We study how an increase in harvesting efficiency changes the different components of welfare—consumer surplus and producer surplus—in such a regulated open-access fishery, taking t the feedback of harvesting on stock dynamics, i.e. the dynamic common-pool resource externality into account. We find that both components of welfare change in the same direction. If, and only if, initial efficiency is low enough so that there is no maximum sustainable yield (MSY) overfishing, an improvement of harvesting efficiency increases welfare. Myopic exploitation, Fishing efficiency, Welfare, Maximum sustainable yield 4 2022 82 8 4 Environmental and Resource Economics 869 888 Q22 http://link.springer.com/10.1007/s10640-022-00693-y text/html Abstract Martin Quaas martin.quaas@idiv.de Leipzig University and German Centre for Integrative Biodiversity Research (iDiv) Halle-Jena-Leipzig Anders Skonhoft Anders.skonhoft@ntnu.no Norwegian University of Science and Technology
oai:RePEc:kap:enreec:v:82:y:2022:i:4:d:10.1007_s10640-022-00672-32022-07-18RePEc:kap:enreec
article Wealth and Vulnerability to Climate Change: An Experimental Study on Burden Sharing among Heterogeneous Agents Abstract Agents in global climate negotiations differ with respect to their vulnerability to the negative consequences of climate change, but also their ability to contribute to its prevention. Due to this multidimensional heterogeneity, agents disagree about how the costs of emission reduction ought to be shared and, as a consequence, efficiency is low. This experiment varies the two dimensions separately in a controlled setting. The results show that in groups that succeed in reaching a predefined threshold, the rich and the more vulnerable, ceteris paribus, tend to carry a larger share of the burden. Surprisingly, groups are most likely to master the challenge when poverty coincides with high vulnerability. In this case the rich and less vulnerable abstain from interpreting fair burden sharing in a self-serving manner. Instead, they seem to acknowledge the double-disadvantaged position of the poor and more vulnerable and voluntarily carry a larger share of the burden. Laboratory experiment, Heterogeneity, Collective action, Cooperation, Climate change 4 2022 82 8 1 Environmental and Resource Economics 791 823 http://link.springer.com/10.1007/s10640-022-00672-3 text/html Abstract Ilona Reindl ilona.reindl@univie.ac.at University of Vienna
oai:RePEc:kap:enreec:v:82:y:2022:i:4:d:10.1007_s10640-022-00697-82022-07-18RePEc:kap:enreec
article Can International Climate Cooperation Induce Knowledge Spillover to Developing Countries? Evidence from CDM Abstract Under the Kyoto Protocol, the Clean Development Mechanism (CDM) expects to facilitate the North-South knowledge spillovers for climate-friendly technologies. This paper examines the effect of this voluntary international climate cooperation on firm innovation and knowledge spillovers through the lens of CDM projects in China. Using a matched Difference-in-Differences (DID) approach, we find that CDM projects contribute to firms’ innovation quantity, quality, and direction in renewable energy and energy efficiency technologies. These effects are more pronounced in inducing wind, hydro, and solar energy. We explore the role of foreign sponsors in knowledge spillovers. Sponsoring firms play the technology supplier role by raising the innovation quantity and quality, while sponsoring governments perform the information intermediary role by facilitating citation flows. CDM, Knowledge spillovers, Patent, Renewable energy 4 2022 82 8 6 Environmental and Resource Economics 923 951 O3 Q55 Q42 http://link.springer.com/10.1007/s10640-022-00697-8 text/html Abstract Jingbo Cui jingbo.cui@duke.edu Duke Kunshan University Zhenxuan Wang zhenxuan.wang@duke.edu Duke University Haishan Yu haishan.yu@sjtu.edu.cn Shanghai Jiao Tong University
oai:RePEc:kap:enreec:v:82:y:2022:i:4:d:10.1007_s10640-022-00701-12022-07-18RePEc:kap:enreec
article Substitution Preferences for Fish in Senegal Abstract In a marine multi-species environment, consumers’ decisions may introduce interactions between species beyond biological ecosystem links. The theoretical literature shows that consumer preferences for variety can trigger a sequential (local) extinction of fish stocks. However, consumer preferences are not yet fully understood empirically, as it is uncertain how variety-loving consumers really are, in particular in specific settings such as in developing countries. In this article, we present an aggregation procedure to study consumer preferences in a highly diverse marine system. In a first step, we use co-integration analysis and aggregation theorems by Hicks and Lewbel to find groups of species that consumers find substitutable. In a second step, we use a direct quadratic almost ideal demand system (QUAIDS) to estimate price elasticities between these groups. We then quantify and compare welfare losses and spillovers from species-specific price shocks that may for example result from restoration efforts. Our case study from Senegal across 28 species reveals evidence that consumers do indeed have a preference for diversity of species on their plates. Aggregation, Fish demand, Marine biodiversity, Price elasticities, QUAIDS, Substitution 4 2022 82 8 9 Environmental and Resource Economics 1015 1045 Q18 Q22 D12 C32 C33 http://link.springer.com/10.1007/s10640-022-00701-1 text/html Abstract Kira Lancker kira.lancker@idiv.de German Center for Integrative Biodiversity Halle-Jena-Leipzig (iDiv) Julia Bronnmann jubr@sam.sdu.dk University of Southern Denmark
oai:RePEc:kap:enreec:v:82:y:2022:i:4:d:10.1007_s10640-022-00690-12022-07-18RePEc:kap:enreec
article Lottery Incentives and Resource Management: Evidence from the Agricultural Data Reporting Incentive Program (AgDRIP) Abstract To manage resources effectively in an agri-environmental context, policymakers need information about on-farm management practices and ecological conditions. This information is often accessible to agricultural producers but not to policymakers. However, little is known about how best to structure incentives for voluntary reporting. In other contexts, lotteries are often used to provide an incentive for voluntary data reporting. This article provides evidence about the efficacy of lottery (stochastic) incentives relative to fixed (deterministic) incentives. Based on two field experiments embedded in a data reporting program for agricultural producers, we estimate that lottery incentives reduced program enrollment between 28% and 62% relative to fixed incentives. A novel feature of our study is a comparison between fixed incentives and actuarially equivalent lotteries with explicitly communicated probabilities, which allows us to rule out an effect size of actuarially equivalent lotteries larger than +15% relative to fixed incentives. Citizen science, Field experiment, Lottery incentives, Randomized controlled trial, Resource management 4 2022 82 8 3 Environmental and Resource Economics 847 867 http://link.springer.com/10.1007/s10640-022-00690-1 text/html Abstract Ben S. Meiselman ben.meiselman@treasury.gov U.S. Department of the Treasury Collin Weigel Collin.Weigel@arb.ca.gov California Air Resources Board Paul J. Ferraro pferraro@jhu.edu Johns Hopkins University The Center for Behavioral & Experimental Agri-Environmental Research Mark Masters mmasters@h2opolicycenter.org The Center for Behavioral & Experimental Agri-Environmental Research Albany State University and Georgia Water Planning and Policy Center Kent D. Messer messer@udel.edu The Center for Behavioral & Experimental Agri-Environmental Research University of Delaware Olesya M. Savchenko olesya.savchenko@ufl.edu The Center for Behavioral & Experimental Agri-Environmental Research University of Florida Jordan F. Suter Jordan.Suter@colostate.edu The Center for Behavioral & Experimental Agri-Environmental Research Colorado State University
oai:RePEc:kap:enreec:v:82:y:2022:i:4:d:10.1007_s10640-022-00699-62022-07-18RePEc:kap:enreec
article Catch More to Catch Less: Estimating Timing Choice as Dynamic Bycatch Avoidance Behavior Abstract We model harvesters’ temporal participation behavior in a fishery with individual quotas for both a target and bycatch species. Harvesters make participation decisions given time-varying characteristics of the fishery (e.g., catch rates, price, and bycatch rates) and outside opportunities (e.g., other fisheries). A harvester’s problem is seasonally dynamic under the individual quota scheme because quota acts as an intertemporal budget constraint. We construct a theoretical model to describe how the shadow value of individual quota plays a role in a harvester’s decision and propose an empirical model that captures the dynamic effect of the seasonal quota usage. Our study finds support for the existence of dynamic bycatch avoidance: harvesters use the security provided by quota allocations to reduce harvesting around periods of high bycatch. Our policy simulation demonstrates that opening the season earlier could reduce bycatch while the main target catch is maintained due to temporal shift of quota usage. Bycatch, Dynamic avoidance, Policy simulation, Prohibited species catch, Shadow value of individual quota 4 2022 82 8 7 Environmental and Resource Economics 953 984 C61 Q22 Q28 http://link.springer.com/10.1007/s10640-022-00699-6 text/html Abstract Keita Abe keita.abe@snf.no Centre for Applied Research at NHH Christopher M. Anderson cmand@uw.edu University of Washington Matthew N. Reimer mnreimer@ucdavis.edu University of California
oai:RePEc:kap:enreec:v::y::i::d:10.1007_s10640-020-00421-42020-04-27RePEc:kap:enreec
article Estimating Power Sector Leakage Risks and Provincial Impacts of Canadian Carbon Pricing Abstract Carbon pricing systems have emerged in Canada at provincial and federal levels to reduce CO2 emissions. However, cross-border electricity trade with the U.S. is already extensive, and although Canada is currently a net exporter, policy changes could alter these trade dynamics. Since CO2 emissions are currently unregulated in many U.S. states, there is a concern that this incomplete regulatory coverage will lead to emissions leakage, as electric generation and emissions shift toward these unregulated regions. This paper examines potential power sector emissions leakage and distributional implications across provinces from Canadian carbon pricing. Using an integrated model of electric sector investments and operations with detailed spatial and temporal resolutions, the analysis demonstrates how emissions leakage through trade adjustments can be non-trivial fractions of the intended emissions reductions even in the presence of leakage containment measures. Magnitudes of long-run leakage rates from Canadian carbon pricing depend on market and policy assumptions (e.g., natural gas prices, projected load growth, long-run demand elasticities, timing of future U.S. CO2 policy), ranging from 13% (high gas price scenario with border carbon adjustments) to 76% (lower gas price scenario without antileakage measures), which are higher than reported literature values for national policies. When leakage containment measures are implemented, net emissions and leakage rates decrease, but gross emissions in Canada and policy costs increase. Leakage persists in alternate scenarios with constrained transmission expansion, higher natural gas prices, lower load growth, higher price elasticities of demand, and U.S. adoption of carbon pricing, but leakage rates decrease under these conditions. Climate policy, Economic geography, Emissions leakage, Energy-economic modeling, Market integration, Trade Environmental and Resource Economics 1 28 F18 L94 Q28 Q42 Q48 http://link.springer.com/10.1007/s10640-020-00421-4 text/html Abstract John E. T. Bistline jbistline@epri.com Electric Power Research Institute James Merrick Geal Research Victor Niemeyer Niemeyer Solutions
oai:RePEc:kap:enreec:v:83:y:2022:i:3:d:10.1007_s10640-022-00698-72022-11-01RePEc:kap:enreec
article The Effects of International Trade on Structural Convergence and CO2 Emissions Abstract This article introduces a new econometric model that includes an innovative measure of intersectoral structural change. This model describes the structural convergence (or divergence) of sector share patterns across countries (from the North-South or global perspective) influenced by international trade. The econometric analysis applies panel data estimators with different types of fixed effects to the 2013 and 2016 releases of the World Input-Output Database, covering the periods 1995–2009 and 2000–2014. The results show that international trade mostly promotes structural convergence, which is enhanced by sectoral capital intensities. It seems, however, that in this millennium, structural divergence, also fostered by international trade, occurred in terms of the CO $$_2$$ 2 intensity of production. Structural change, International trade, CO2, Macro-econometrics, Panel data, WIOD 3 2022 83 11 2 Environmental and Resource Economics 579 604 C51 F14 F18 O11 O44 http://link.springer.com/10.1007/s10640-022-00698-7 text/html Abstract Michael Hübler michael.huebler@agrar.uni-giessen.de Justus Liebig University Giessen Leibniz University Hannover Eduard Bukin Justus Liebig University Giessen Yuting Xi Leibniz University Hannover East China University of Science and Technology
oai:RePEc:kap:enreec:v:83:y:2022:i:3:d:10.1007_s10640-022-00709-72022-11-01RePEc:kap:enreec
article Efficiency Investment and Curtailment Action Abstract Households’ energy-saving activities are often categorized into efficiency investment and curtailment action, which previous studies have analyzed separately, even though households use both activity types simultaneously. In this study, we develop an energy-saving model based on a household production framework to show how these two activities are related. Our household production framework predicts that a household uses energy efficiency investment and curtailment action jointly and not alternatively. Specifically, a household that invests heavily in energy efficiency spends more time on curtailment action . Our empirical analysis uses micro-level data from the Survey on Carbon Dioxide Emissions from Households in Japan to examine the validity of this prediction in a real-world setting. We compare the intensities of curtailment actions by households that keep using old appliances beyond the appropriate replacement period with those by households that use appliances within an appropriate replacement cycle. Our empirical results reveal that the former households, which do not invest in energy efficiency adequately, are less engaged in curtailment actions than the latter households, which invest in energy efficiency adequately. Therefore, the empirical results support the theoretical prediction. Curtailment action, Efficiency investment, Household energy saving, Micro-level data 3 2022 83 11 8 Environmental and Resource Economics 759 789 D13 J22 Q41 http://link.springer.com/10.1007/s10640-022-00709-7 text/html Abstract Shigeru Matsumoto shmatsumoto@aoyamagakuin.jp Aoyama Gakuin University Waseda University Hajime Sugeta sugeta@kansai-u.ac.jp Kansai University
oai:RePEc:kap:enreec:v:83:y:2022:i:3:d:10.1007_s10640-022-00711-z2022-11-01RePEc:kap:enreec
article How Does State-Level Carbon Pricing in the United States Affect Industrial Competitiveness? Abstract Pricing carbon emissions from an individual jurisdiction may harm the competitiveness of local firms, causing the leakage of emissions and economic activity to other regions. Past research concentrates on national carbon prices, but the impacts of subnational carbon prices could be more severe due to the openness of regional economies. We specify a flexible model to capture competition between a plant in a state with electric sector carbon pricing and plants in other states or countries without such pricing. Treating energy prices as a proxy for carbon prices, we estimate model parameters using confidential plant-level Census data, 1982–2011. We simulate the effects on manufacturing output and employment of carbon prices covering the Regional Greenhouse Gas Initiative (RGGI) in the Northeast and Mid-Atlantic regions. A carbon price of $10 per metric ton on electricity output reduces employment in the regulated region by 2.1 percent, and raises employment in nearby states by 0.8 percent, although these estimates do not account for revenue recycling in the RGGI region that could mitigate these employment changes. The effects on output are broadly similar. National employment falls just 0.1 percent, suggesting that domestic plants in other states as opposed to foreign facilities gain the most jobs from state or regional carbon pricing. Cap-and-trade, Emissions leakage, Industrial competitiveness, Regional greenhouse gas initiative 3 2022 83 11 10 Environmental and Resource Economics 831 860 http://link.springer.com/10.1007/s10640-022-00711-z text/html Abstract Brendan Casey bjdcasey@gmail.com American Clean Power Association Wayne B. Gray wgray@clarku.edu Clark University Joshua Linn linn@umd.edu University of Maryland Richard D. Morgenstern morgenstern@rff.org Resources for the Future
oai:RePEc:kap:enreec:v:83:y:2022:i:3:d:10.1007_s10640-022-00702-02022-11-01RePEc:kap:enreec
article Endogeneity and Measurement Bias of the Indicator Variables in Hybrid Choice Models: A Monte Carlo Investigation Abstract We investigate the problem of endogeneity and measurement bias arising from incorporating indicator variables (e.g., measures of attitudes) into discrete choice models. We demonstrate that although a hybrid choice framework can resolve both endogeneity and measurement problems, the former requires explicit accounting for in the model, which has not typically been done in applied studies to date. By conducting a Monte Carlo experiment, we demonstrate the extent of the bias resulting from measurement and endogeneity problems. We propose two novel solutions to address the endogeneity problem: explicitly accounting for correlation between structural and discrete choice component error terms (or with random parameters in a utility function), or introducing additional latent variables. Using simulated data, we demonstrate that these approaches work as expected, i.e. they successfully recover the true values of all model parameters. Attitudinal variables, Endogeneity, Hybrid choice models, Indicator variables, Measurement error 3 2022 83 11 3 Environmental and Resource Economics 605 629 C35 C51 Q51 R41 http://link.springer.com/10.1007/s10640-022-00702-0 text/html Abstract Wiktor Budziński wbudzinski@wne.uw.edu.pl University of Warsaw Mikołaj Czajkowski mc@uw.edu.pl University of Warsaw
oai:RePEc:kap:enreec:v:83:y:2022:i:3:d:10.1007_s10640-022-00696-92022-11-01RePEc:kap:enreec
article Extended Producer Responsibility, Packaging Waste Reduction and Eco-design Abstract The main policy addressing the packaging waste issue in the countries of the European Union has been to define recycling objectives along with Extended Producer Responsibility (EPR). With EPR, producers finance the recycling and management of waste generated by their products. Within this framework, they are expected to internalise waste management costs and engage in eco-design of their packaging, i.e., use less packaging and increase packaging recyclability (e.g., through substitution of materials). EPR has been extended worldwide over recent decades and applied to various waste streams. In this paper, by exploiting temporal variation of an original panel dataset of EPR compliance costs from 25 European countries (1998–2015) and four packaging materials, I evaluate for the first time whether these costs have led to packaging waste reduction and substitution of packaging materials. I find that the EPR financial incentive has resulted in very little (though statistically significant) packaging reduction and no systematic substitution effects between packaging materials. Circular economy, Extended producer responsibility, Environmental policy, Eco-design 3 2022 83 11 1 Environmental and Resource Economics 527 578 Q53 H23 http://link.springer.com/10.1007/s10640-022-00696-9 text/html Abstract Eugénie Joltreau eugenie.joltreau@dauphine.psl.eu PSL Research University, Université Paris-Dauphine
oai:RePEc:kap:enreec:v:83:y:2022:i:3:d:10.1007_s10640-022-00715-92022-11-01RePEc:kap:enreec
article Correction to: The International Dimension of the EU Emissions Trading System: Bringing the Pieces Together 3 2022 83 11 13 Environmental and Resource Economics 907 907 http://link.springer.com/10.1007/s10640-022-00715-9 text/html Abstract Stefano F. Verde stefano.verde@unisi.it University of Siena Simone Borghesi FSR Climate, European University Institute University of Siena
oai:RePEc:kap:enreec:v:83:y:2022:i:3:d:10.1007_s10640-022-00713-x2022-11-01RePEc:kap:enreec
article Trade, Resource Use and Pollution: A Synthesis Abstract We develop a two-sector dynamic model of trade and the environment. Both resource-good and manufacturing sectors generate environmental burdens that can adversely affect the environment in a country over time. The resource-good sector is environmentally sensitive, with its productivity suffering in line with declines in the environmental stock. Countries can be categorized into two types: one in which the resource-good sector is more environmentally harmful than the manufacturing sector, and another in which the opposite is true. At every point in time, labor allocations and specialization patterns under free trade are dependent on country size, technology, household preferences, and environmental stocks. Trading countries’ types have implications for the dynamics of environmental stocks and the corresponding environmental and welfare consequences of trade. If two trading countries are of the same type, one country exports its dirtier goods and the other must export its cleaner goods; consequently, at least one country gains from trade. If the two countries are of different types, they can export their respective dirtier goods and may both lose from trade. Country type, Environmental stock, Long-run gains from trade, Pollution, Resource extraction, World specialization pattern 3 2022 83 11 11 Environmental and Resource Economics 861 901 F18 Q27 http://link.springer.com/10.1007/s10640-022-00713-x text/html Abstract Gang Li Toyo University Akihiko Yanase yanase@soec.nagoya-u.ac.jp Nagoya University
oai:RePEc:kap:enreec:v:83:y:2022:i:3:d:10.1007_s10640-022-00710-02022-11-01RePEc:kap:enreec
article Assessing the Impact of Offshore Wind Power Deployment on Fishery: A Synthetic Control Approach Abstract Global efforts to decarbonize the energy sector are necessary to curb global warming, and many countries plan to achieve this through the rapid deployment of offshore wind power. However, the deployment will likely decelerate if local fishers plying their trade near maritime areas likely to host offshore wind farms oppose the deployments due to anticipated fishery disruptions. To date, there is no body of knowledge on the causal impact of offshore wind farm installation on local fisheries. Using fishery production panel data at the municipality level in Japan, this study applies a synthetic control method to measure causal impacts. The results suggest that offshore wind farms currently installed in Japan are unlikely to disrupt local fisheries. We find no statistically significant effects either on aggregated fishery production or on production categorized by fishery type. Moreover, we find no spatial spillover effects. Although the generalization of our findings requires caution because they are based on small-scale wind farms, our results imply that such moderate-size wind projects may not harm local fisheries. Causal impacts, Observational data, Quantitative analysis, Renewable energy, Synthetic control method 3 2022 83 11 9 Environmental and Resource Economics 791 829 R14 Q22 Q42 Q51 http://link.springer.com/10.1007/s10640-022-00710-0 text/html Abstract Hideki Shimada hideki-shimada@aist.go.jp National Institute of Advanced Industrial Science and Technology Kenji Asano k-asano@criepi.denken.or.jp Central Research Institute of Electric Power Industry Yu Nagai nagai-yu@criepi.denken.or.jp Central Research Institute of Electric Power Industry Akito Ozawa akito.ozawa@aist.go.jp National Institute of Advanced Industrial Science and Technology
oai:RePEc:kap:enreec:v:83:y:2022:i:3:d:10.1007_s10640-022-00707-92022-11-01RePEc:kap:enreec
article Do PTAs with Environmental Provisions Reduce GHG Emissions? Distinguishing the Role of Climate-Related Provisions Abstract This paper assesses the effectiveness of the environmental-related commitments contained in preferential trade agreements (PTAs) on climate change mitigation. A novel and detailed database identifying nearly 300 different types of environmental provisions from more than 680 PTAs since 1947 allows us to distinguish the PTAs with climate-related provisions (PTAwCP) from those with provisions related to other environmental issues. Using panel data covering 165 countries over the period 1995 to 2012, controlling for endogeneity issues, our main result shows that PTAwCP statistically reduce the emissions while the effect of PTAs with provisions related to other environmental issues remains negative but does not significantly affect GHG emissions. Our results suggest that it is rather the specific climate-related provisions in PTAwEP that reduce emissions (carbon dioxide, methane and nitrous oxide). Thus, to be effective in terms of mitigating climate change, PTAwEP should contain climate-related commitments. Preferential trade agreements, Climate-related provisions, Environmental policy, Greenhouse gases, Global warming, Climate change 3 2022 83 11 6 Environmental and Resource Economics 709 732 F13 F18 Q51 Q54 http://link.springer.com/10.1007/s10640-022-00707-9 text/html Abstract Zakaria Sorgho zakaria.sorgho@ecn.ulaval.ca Laval University, CREATE and CEPCI FERDI Joe Tharakan University of Liege, HEC-Liège and CORE
oai:RePEc:kap:enreec:v:83:y:2022:i:3:d:10.1007_s10640-022-00704-y2022-11-01RePEc:kap:enreec
article Altruist Talk May (also) Be Cheap: Revealed Versus Stated Altruism as a Predictor in Stated Preference Studies Abstract Altruistic preferences have been found to be important for explaining the substantial non-use values identified in numerous stated preference surveys. However, studies analysing the effect of altruism on willingness to pay (WTP) have underestimated the challenges of measuring altruism by stated measures. We exploit a naturally occurring decision domain to investigate the role of altruism in stated preference studies. We employ a novel dataset, collected from an Internet survey panel, that contains respondents’ past donations of earned survey coins to charities and use these data to analyse the effect of donation behaviour on the same respondents’ WTP. We analyse donation behaviour across two contingent valuation surveys on environmental topics. Donators are proven givers in an anonymous and unrelated setting, much like decision-making in a dictator game. We find that respondents’ past donations are associated with higher WTP, even after controlling for stated measures of altruism, ecological, and environmental attitudes. The results suggest that measures of stated altruism fail to capture important aspects of altruism, implying that previous studies of altruism based on such measures may be questioned. The results also support research demonstrating that altruistic behaviour in one decision domain is a good predictor of altruistic behaviour in other domains. Prosocial behaviour, Altruism, Contingent valuation, Donations, Willingness to pay 3 2022 83 11 5 Environmental and Resource Economics 681 708 http://link.springer.com/10.1007/s10640-022-00704-y text/html Abstract Endre Kildal Iversen endre.iversen@snf.no Norwegian University of Life Sciences SNF - Centre for Applied Research at NHH Kristine Grimsrud kristine.grimsrud@ssb.no Statistics Norway Yohei Mitani yomitani@kais.kyoto-u.ac.jp Kyoto University Henrik Lindhjem henrik.lindhjem@menon.no Menon Centre for Environmental and Resource Economics Norwegian Institute for Nature Research (NINA)
oai:RePEc:kap:enreec:v:83:y:2022:i:3:d:10.1007_s10640-022-00727-52022-11-01RePEc:kap:enreec
article EAERE Award for the Best Paper Published in Environmental and Resource Economics during 2021 3 2022 83 11 12 Environmental and Resource Economics 903 905 http://link.springer.com/10.1007/s10640-022-00727-5 text/html Abstract Simone Borghesi simone.borghesi@unisi.it President-elect of the European Association of Environmental and Natural Resource Economists (EAERE) Director Florence School of Regulation-Climate, European University Institute University of Siena Alistair Munro Director of the Policy Analysis Programme, National Graduate Institute for Policy Studies (GRIPS) Joëlle Noailly Geneva Graduate Institute
oai:RePEc:kap:enreec:v:83:y:2022:i:3:d:10.1007_s10640-022-00708-82022-11-01RePEc:kap:enreec
article On the quality of emission reductions: observed effects of carbon pricing on investments, innovation, and operational shifts. A response to van den Bergh and Savin (2021) Abstract To meet the Paris Agreement targets, carbon emissions from the energy system must be eliminated by mid-century, implying vast investment and systemic change challenges ahead. In an article in WIREs Climate Change, we reviewed the empirical evidence for effects of carbon pricing systems on technological change towards full decarbonisation, finding weak or no effects. In response, van den Bergh and Savin (2021) criticised our review in an article in this journal, claiming that it is “unfair”, incomplete and flawed in various ways. Here, we respond to this critique by elaborating on the conceptual roots of our argumentation based on the importance of short-term emission reductions and longer-term technological change, and by expanding the review. This verifies our original findings: existing carbon pricing schemes have sometimes reduced emissions, mainly through switching to lower-carbon fossil fuels and efficiency increases, and have triggered weak innovation increases. There is no evidence that carbon pricing systems have triggered zero-carbon investments, and scarce but consistent evidence that they have not. Our findings highlight the importance of adapting and improving climate policy assessment metrics beyond short-term emissions by also assessing the quality of emission reductions and the progress of underlying technological change. Carbon pricing, Climate policy, Decarbonisation, Technological change, Energy transition 3 2022 83 11 7 Environmental and Resource Economics 733 758 http://link.springer.com/10.1007/s10640-022-00708-8 text/html Abstract Johan Lilliestam johan.lilliestam@iass-potsdam.de Institute for Advanced Sustainability Studies (IASS) University of Potsdam Anthony Patt ETH Zürich Germán Bersalli Institute for Advanced Sustainability Studies (IASS)
oai:RePEc:kap:enreec:v:76:y:2020:i:4:d:10.1007_s10640-020-00480-72022-12-21RePEc:kap:enreec
article The Consequences of COVID-19 and Other Disasters for Wildlife and Biodiversity Abstract We review the economic channels by which the COVID-19 pandemic and subsequent policy responses may affect wildlife and biodiversity. The pandemic is put in the context of more than 5, 000 disease outbreaks, natural disasters, recessions and armed conflicts in a sample of 21 high biodiversity countries. The most salient feature of the pandemic is its creation of multiple income shocks to rural and coastal households in biodiverse countries, correlated across sectors of activities and spatially. Various research and policy opportunities and challenges are explored . COVID-19, Biodiversity, Pandemic, Disasters, Conflicts, Poverty, Food insecurity, Risk, Correlated shocks 4 2020 76 8 25 Environmental and Resource Economics 945 961 http://link.springer.com/10.1007/s10640-020-00480-7 text/html Abstract Daniel Rondeau rondeau@uvic.ca University of Victoria Brianna Perry briannanpperry@gmail.com University of Victoria Franque Grimard franque.grimard@mcgill.ca McGill University
oai:RePEc:kap:enreec:v:29:y:2004:i:2:p:231-2522022-12-21RePEc:kap:enreec
article Collective versus Random Fining: An Experimental Study on Controlling Ambient Pollution This paper presents an experimental study oftwo different pollution compliance games:collective vis-à-vis random fining as ameans to regulate non-pointpollution. Using samples from both Costa Ricancoffee mill managers and Costa Rican students, we find that the two games perform equivalentlybut, although they lead to efficient outcomesthrough Nash play in the majority of cases, theobserved frequency of Nash play is lower thantheoretically predicted. Moreover, we rejectthe hypothesis that managers and studentsbehave equally. Off the equilibrium, managerstend to over-abate, whereas students tend tounder-abate. This result suggests theimportance of considering subject pooldifferences in the evaluation of environmentalpolicies by means of experiments, particularlyif those policies involve certain forms ofmanagement decisions. Copyright Kluwer Academic Publishers 2004 environmental regulation, experimental economics, non-point pollution, subject pool, 2 2004 29 10 Environmental and Resource Economics 231 252 http://hdl.handle.net/10.1023/B:EARE.0000044608.66145.0c text/html Access to full text is restricted to subscribers. Francisco Alpízar Till Requate requate@wiso.uni-kiel.de Albert Schram
oai:RePEc:kap:enreec:v:16:y:2000:i:4:p:423-4412022-12-21RePEc:kap:enreec
article Trading Sulphur Emissions in Europe: `Guided Bilateral Trade' In this paper a system of `guided permit trading' is developed for SO 2 emissions reduction which considers permit trading as a bilateral andsequential process. This implies that in order to meet the deposition targetsat the end of the trading process, not every single trade transaction hasto meet the deposition targets. To ensure that the target is ultimately met, the number of permits traded should be controlled by a trade coordinatinginstitution. A simulation of the system of guided bilateral trading ofSO 2 permits among European countries on the basis of the SecondSO 2 Protocol indicates that some non-profitable trade transactionstake place. This prevents the cost effective emission allocation from beingfully achieved. However, the calculations show that guided bilateral permittrading may generate substantial cost savings while contributing toenvironmental protection. Copyright Kluwer Academic Publishers 2000 tradeable permits, acid rain, 4 2000 16 8 Environmental and Resource Economics 423 441 http://hdl.handle.net/10.1023/A:1008371731089 text/html Access to full text is restricted to subscribers. S. Kruitwagen H. Folmer E. Hendrix L. Hordijk E. van Ierland
oai:RePEc:kap:enreec:v:38:y:2007:i:1:p:135-1532022-12-21RePEc:kap:enreec
article Spatial welfare economics versus ecological footprint: modeling agglomeration, externalities and trade A welfare framework for the analysis of the spatial dimensions of sustainability is developed. It covers agglomeration effects, interregional trade, negative environmental externalities, and various land use categories. The model is used to compare rankings of spatial configurations according to evaluations based on social welfare and ecological footprint indicators. Five spatial configurations are considered for this purpose. The exercise is operationalized with the help of a two-region model of the economy, that is, in line with the ‘new economic geography.’ By generating a number of numerical ‘counter-examples, ’ it is shown that the footprint method is inconsistent with an approach aimed at maximum social welfare. Unless environmental externalities are such a large problem that they overwhelm all other components of economic well-being, a ‘spatial welfare economic’ approach delivers totally different rankings of alternative land use configurations than the ecological footprint. Copyright Springer Science+Business Media, Inc. 2007 Agglomeration effects, Negative externalities, Population density, Spatial configurations, Trade advantages, Transport, F12, F18, Q56, Q57, R12, 1 2007 38 9 Environmental and Resource Economics 135 153 http://hdl.handle.net/10.1007/s10640-006-9067-2 text/html Access to full text is restricted to subscribers. Fabio Grazi grazi@unive.it Jeroen Bergh Piet Rietveld
oai:RePEc:kap:enreec:v:27:y:2004:i:3:p:313-3352022-12-21RePEc:kap:enreec
article An Experimental Validation of Hypothetical WTP for a Recyclable Product Using a within-subject experiment, we compare hypothetical andreal willingness to pay (WTP) for an improvement in therecyclability of a product. Subjects are faced with a real paymentscenario after they have responded to a hypothetical question.Contrary to most of the results obtained in similar studies, at apopulation level, there are no significant median differencesbetween actual and hypothetical stated values of WTP. However, within-subject comparisons between hypothetical and actual valuesindicate that subjects stating a low (high) hypothetical WTP tendto underestimate (overestimate) the value of their actualcontributions. Copyright Kluwer Academic Publishers 2004 contingent valuation, laboratory experiments, product design, product recyclability, vertical differentiation, willingness to pay, 3 2004 27 3 Environmental and Resource Economics 313 335 http://hdl.handle.net/10.1023/B:EARE.0000017657.08513.74 text/html Access to full text is restricted to subscribers. Eva Camacho-Cuena Aurora García-Gallego Nikolaos Georgantzís Gerardo Sabater-Grande sabater@eco.uji.es
oai:RePEc:kap:enreec:v:15:y:2000:i:3:p:243-2562022-12-21RePEc:kap:enreec
article Environmental Taxation and Strategic Commitment in Duopoly Models In this paper, we address the issue of optimalenvironmental taxation under imperfect competition.The problem is analysed for three different types ofduopoly models, the Cournot open and closed loopmodels, and the Stackelberg model. We explicitlyanalyse the role of strategic behaviour. Each firm hasto make a choice of output level and of the level ofa strategic variable. The choice of this strategicvariable affects both marginal cost and emissions. Wecompare the properties of these three duopoly models, and derive and compare optimal environmental taxes. Weshow that whether the optimal tax is lower or higherthan marginal environmental costs depends on theinformation transmission and the effect of thestrategic variable on marginal costs. In addition, thedifferences in market shares, and the influence of thetax on the cost structure play important roles, indetermining optimal emission taxes. Copyright Kluwer Academic Publishers 2000 environmental taxation, oligopoly, optimal taxation, strategic commitment, 3 2000 15 3 Environmental and Resource Economics 243 256 http://hdl.handle.net/10.1023/A:1008362222639 text/html Access to full text is restricted to subscribers. Fredrik Carlsson Fredrik.Carlsson@economics.gu.se
oai:RePEc:kap:enreec:v:53:y:2012:i:3:p:347-3652022-12-21RePEc:kap:enreec
article Distance Decay Functions for Iconic Assets: Assessing National Values to Protect the Health of the Great Barrier Reef in Australia The aim of this study was to estimate the values to protect the health of the Great Barrier Reef (GBR) at the national level and to examine the effects of distance decay on valuation estimates. Two choice-modelling experiments were conducted in six locations: a regional town within the GBR catchment area (Townsville); Brisbane, the state capital approximately 450 km from the southern limit of the GBR; and four other capital cities (Sydney, Melbourne, Adelaide and Perth) ranging from nearly 1, 000 km to over 4, 000 km from Brisbane. Value estimates from a pooled model suggest that the average WTP across Australian households is $21.68 per household per annum for 5 years, and that those values are higher for respondents with higher levels of education and income, respondents who live in Queensland, respondents who live further away, and respondents who plan to visit more often in the future. For this nationally important iconic asset, apparent distance decay effects appear to be explained by variations in future usage and state responsibility, rather than proximity. Copyright Springer Science+Business Media B.V. 2012 Choice experiments, Distance decay, Iconic values, Coral reefs, 3 2012 53 11 Environmental and Resource Economics 347 365 http://hdl.handle.net/10.1007/s10640-012-9565-3 text/html Access to full text is restricted to subscribers. John Rolfe j.rolfe@cqu.edu.au Jill Windle
oai:RePEc:kap:enreec:v:71:y:2018:i:1:d:10.1007_s10640-017-0141-82022-12-21RePEc:kap:enreec
article North–South Negotiations on Emission Reductions: A Bargaining Approach Abstract This article models North–South negotiations on emission reductions, where the North provides side payments in exchange for the South’s adoption of a more stringent emission standard. We find that depending on where firms compete, strong asymmetry among regions (the two regions’ different valuations of side payments and climate change damage) can produce self-enforcing cooperative agreements. Moreover, the South’s optimal standard choice can be one of two polar cases, i.e., either the “cleanest” or the “dirtiest, ” irrespective of the continuum of standards available. The results above can also hold true when both parties bargain over the South’s emission tax. Emission reductions, Bargaining, Side payments, North–South negotiation, Abatement technology, Emission tax 1 2018 71 9 7 Environmental and Resource Economics 157 177 C71 F18 L13 Q52 Q54 http://link.springer.com/10.1007/s10640-017-0141-8 text/html Abstract Dapeng Cai dcai@nanzan-u.ac.jp Nanzan University Jie Li eflijie@jnu.edu.cn Jinan University
oai:RePEc:kap:enreec:v:23:y:2002:i:2:p:167-1862022-12-21RePEc:kap:enreec
article Attribute Causality in Environmental Choice Modelling When selecting attributes in environmentalChoice Modelling studies, preference should begiven to those attributes that aredemand-relevant, policy-relevant, andmeasurable. The use of these criteria willoften result in a short list of environmentalattributes of which some are causally related. The inclusion of attributes that have a``cause-effect'' relationship may stimulate somerespondents to seek to understand the causalrelations among attributes in order to assigngreater meaning to the alternatives, andpotentially, simplify the decision makingprocess. This may have implications for theweights they assign to each of the attributeswhen identifying the preferred alternatives, and subsequently for the implicit prices and/orwelfare estimates. A test of the impact ofincluding an attribute that causesimpacts on ecosystem health as well as anattribute relating to ecosystem health effectson parameter estimates, implicitprices and welfare estimates is conducted. Twoquestionnaires are developed, one with the`causal' attribute included and one without. Acomparison of results indicates that when the`causal' attribute is included in the vector ofchoice attributes, the implicit value of asingle endangered species falls by 34 per centwhilst no significant difference is detected inthe parameter estimates. Importantly, however, estimates of compensating surplus for a givenpolicy package do not differsignificantly across the two treatments. Thisimplies that to the extent that the inclusionof a `causal' attribute reduces the implicitprices for one or more of the `effect'attributes, the associated loss in utility isapproximately offset by the utility nowassociated with the new attribute. Copyright Kluwer Academic Publishers 2002 attributes, choice modelling, valuation, vegetation, 2 2002 23 10 Environmental and Resource Economics 167 186 http://hdl.handle.net/10.1023/A:1021202425295 text/html Access to full text is restricted to subscribers. R.K. Blamey J.W. Bennett jeff.bennett@anu.edu.au J.J. Louviere M.D. Morrison J.C. Rolfe
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article Emission Taxes and Tradeable Permits A Comparison of Views on Long-Run Efficiency We compare three different views on the long runefficiencies of emission taxes which includethresholds (inframarginalexemptions), and of tradeable emission permitswhere some permits areinitially free. The differences are caused bydifferent assumptions aboutwhether thresholds and free permits should besubsidies given only to firmsthat produce, or full property rights. Treatingtax thresholds, as well asfree permits, as property rights would departfrom the conventional view, but would allow greater flexibility in makingeconomic instruments bothefficient and acceptable. Such flexibilitycould be very important inachieving efficient control of greenhouse gasemissions. Copyright Kluwer Academic Publishers 2003 efficiency, emission taxes, exemptions, thresholds, tradeable permits, 2 2003 26 10 Environmental and Resource Economics 329 342 http://hdl.handle.net/10.1023/A:1026393028473 text/html Access to full text is restricted to subscribers. John Pezzey pezzey@cres.anu.edu.au
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article Willingness to Pay for Environmental Improvements in a Large City Evidence from The Spike Model and From a Non-Parametric Approach In this paper, the Contingent Valuation Method (CVM) is applied in order toestimate the social benefits of a set of environmental and urbanimprovements planned for the waterfront of the City of Valencia (Spain) asa consequence of the expansion and restructuring of its trading port. Asthe data show a high rate of zero responses, we applied the Spike model, one of the most recent models in CVM literature, since traditional models(Logit and Probit) are not suitable, given the characteristics of our data.The non-parametric approach is also applied in order to test the validity ofthe Spike model. The results show certain similarities between the Spikemodel and the non-parametric approach. Copyright Kluwer Academic Publishers 2001 Contingent Valuation Method, environmental improvements, non-parametric approach, Spike model, 2 2001 20 10 Environmental and Resource Economics 103 112 http://hdl.handle.net/10.1023/A:1012624211878 text/html Access to full text is restricted to subscribers. Salvador Del Saz-Salazar salvador.saz@uv.es Leandro Garcia-Menendez
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article Valuing the Benefits of Coastal Water Quality Improvements Using Contingent and Real Behaviour Recent moves in the European Union have beenmade towards a toughening of legislation onbathing water quality. This has focussedpolicy-makers thoughts on the welfare benefitsresulting from such improvements, especiallygiven their cost. Our paper uses a combinedstated and revealed preference approach tovalue coastal water quality improvements, focussing on an area of Scotland which hasconsistently failed to meet standards under theBathing Waters Directive. We combine data onreal behaviour with data on contingentbehaviour using a random effects negativebinomial panel model. This allows us to predictboth the change in participation (trips) shouldwater quality be improved, and the welfareincrease per trip. Our model includes allowancefor the existence of substitute sites, and forchanges in recreational behaviour during abeach visit. Copyright Kluwer Academic Publishers 2003 bathing water quality, combined stated-revealed preference models, contingent behaviour, panel data, sewage pollution, 3 2003 24 3 Environmental and Resource Economics 273 285 http://hdl.handle.net/10.1023/A:1022904706306 text/html Access to full text is restricted to subscribers. Nick Hanley n.d.hanley@socsci.gla.ac.uk David Bell Begona Alvarez-Farizo
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article Bioeconomic Analysis of By-Catch of Juvenile Fish in the Shrimp Fisheries – an Evaluation of Management Procedures in the Barents Sea A bioeconomic model on the management ofby-catch of juvenile fish in the shrimp fisheryin the Barents Sea and the Svalbard Zone, presented by the Norwegian Directorate ofFisheries to the Joint Norwegian RussianFisheries Commission in 1993, is evaluated. The model is based on management of by-catchthrough closure of areas when the by-catch ofjuvenile fish from commercially importantspecies exceeds a critical number. It isargued that although the model may prove usefulin bringing economic rationale into themanagement of by-catch, care must be taken whenstocks are in poor shape. This is illustratedby using the high mortality rates and low stocklevels experienced for cod and haddock in 2000, and which is expected for the next couple ofyears. It is therefore discussed when it isappropriate to use the model with reference tothe Code of Conduct provided by FAO in 1995. Copyright Kluwer Academic Publishers 2004 by-catch, Code of Conduct, shrimp fisheries, 1 2004 28 5 Environmental and Resource Economics 55 72 http://hdl.handle.net/10.1023/B:EARE.0000023818.91894.ee text/html Access to full text is restricted to subscribers. Siv Reithe sivr@nfh.uit.no Michaela Aschan
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article The Determinants of Brownfields Redevelopment in England Abstract This paper uses discrete choice models, supported by GIS data, to analyse the National Land Use Database, a register of more than 21, 000 English brownfields—previously used sites with or without contamination that are currently unused or underused. Using spatial discrete choice models, including the first application of a spatial probit latent class model with class-specific neighbourhood effects, we find evidence of large local differences in the determinants of brownfields redevelopment in England and that the reuse decisions of adjacent sites affect the reuse of a site. We also find that sites with a history of industrial activities, large sites, and sites that are located in the poorest and bleakest areas of cities and regions of England are more difficult to redevelop. In particular, we find that the probability of reusing a brownfield increases by up to 8.5 % for a site privately owned compared to a site publicly owned and between 15 and 30 % if a site is located in London compared to the North West of England. We suggest that local tailored policies are more suitable than regional or national policies to boost the reuse of brownfield sites. Brownfields, GIS, Revealed preferences, Binary choice model, Spatial autocorrelation, Spatial probit latent class model 2 2017 67 6 3 Environmental and Resource Economics 261 283 http://link.springer.com/10.1007/s10640-015-9985-y text/html Abstract Alberto Longo a.longo@qub.ac.uk Queen’s University Belfast Basque Centre for Climate Change (BC3) Danny Campbell danny.campbell@stir.ac.uk Economics Division, Stirling Management School, University of Stirling
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article Will Trade Liberalization Harm the Environment? The Case of Indonesia to 2020 Most-favoured-nation (MFN) trade liberalizations willalways improve global economic welfare providedglobally optimal environmental and other policies arein place. But since the latter proviso is not met inpractice, empirical studies of the environmental andresource depletion effects of such reforms are neededto determine whether trade reform is still worthwhile.This paper provides a methodology for doing that. Itis illustrated with a case study of Indonesia, a largenewly industrializing country that is rich in naturalresources and committed to taking part in majormultilateral and regional trade liberalizations overthe next two decades. A modified version of theglobal CGE model known as GTAP is used to project theworld economy to 2010 and 2020 without and with thosereforms. An environmental module is attached to theIndonesian part of that global CGE model so as tomeasure the effects of changes in economic activity onair and water pollution. The proportionalcontributions to environmental indicators of changesin the level and composition of output, and changes inproduction techniques, are identified. A base caseprojection without trade reform is compared withalternative scenarios involving full globalimplementation of Uruguay Round commitments by 2010, and the additional move to MFN free trade by APECcountries by 2020. The study suggests that, at leastwith respect to air and water, trade policy reformsslated for the next two decades would in many casesimprove the environment and reduce the depletion ofnatural resources and in the worst cases would addonly slightly to environmental degradation – evenwithout toughening the enforcement of existingenvironmental regulations or adding new ones, and evenif the reforms stimulate a faster rate of economicgrowth. Copyright Kluwer Academic Publishers 2000 global CGE model, Indonesia, trade and environment, 3 2000 17 11 Environmental and Resource Economics 203 232 http://hdl.handle.net/10.1023/A:1026480823657 text/html Access to full text is restricted to subscribers. Anna Strutt astrutt@waikato.ac.nz Kym Anderson kym.anderson@adelaide.edu.au
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article An Analysis of Congestion Measures and Heterogeneous Angler Preferences in a Random Utility Model of Recreational Fishing The potential importance ofcongestion effects on the management andrationing of recreational facilities andservices in the presence of heterogeneouspreferences were highlighted nearly twenty-fiveyears ago by Freeman and Haveman (1977). Whilethere have been a number of theoretical modelsextending and expanding upon this work(McConnell 1988; Anderson 1993), empiricalresearch evaluating such impacts is limited. Evidence of the potential impacts of congestionon resource usage is of obvious importance, especially for natural resource managers whounderstand that congestion can be an effectiverationing device and because users likelydiffer in both their preferences for use andaversion to congestion. It is the objective ofthis research to compare alternative measuresof congestion for explaining site choice withina random utility modeling framework. Thecongestion measures differ with respect to thetime horizon over which they are assumed to beformulated and the measure of central tendencyused to represent them. Furthermore, weinvestigate how the response to thesecongestion measures may differ across twodistinct angler types and the implications ofthose differences on the per trip willingnessto pay for stock enhancement. Copyright Kluwer Academic Publishers 2004 congestion, pricing policy, recreational resources, 4 2004 27 4 Environmental and Resource Economics 429 450 http://hdl.handle.net/10.1023/B:EARE.0000018517.33432.0b text/html Access to full text is restricted to subscribers. Peter Schuhmann Kurt Schwabe
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article Can Stigma Explain Large Property Value Losses? The Psychology and Economics of Superfund This research documents the long term impacts of delayed cleanup on property values in communities neighboring prominent Superfund sites. The research examines the sale prices of nearly 34, 000 homes near sites in three metropolitan areas for up to a 30-year period. To our knowledge, no other property value studies have examined sites in multiple areas with large property value losses over the length of time used here. The results are both surprising and inconsistent with most prior work. The principal result is that, when cleanup is delayed for 10, 15, and even up to 20 years, the discounted present value of the cleanup is mostly lost. A possible explanation for these property value losses is that the sites are stigmatized and the homes in the surrounding communities are shunned. The results suggest that expedited cleanup and minimizing the number of stigmatizing events would reduce these losses. Copyright Springer 2006 hedonic models, property values, stigma, superfund, 3 2006 33 03 Environmental & Resource Economics 299 324 http://hdl.handle.net/10.1007/s10640-005-3609-x text/html Access to full text is restricted to subscribers. Kent Messer kdm22@cornell.edu William Schulze Katherine Hackett Trudy Cameron Gary McClelland
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article Carbon Taxes and Joint Implementation. An Applied General Equilibrium Analysis for Germany and India Germany has committed itself toreducing its carbon emissions by 25 percent in2005 as compared to 1990 emission levels. Toachieve this goal, the government has recentlylaunched an environmental tax reform whichentails a continuous increase in energy taxesin conjunction with a revenue-neutral cut innon-wage labor costs. This policy is supposedto yield a double dividend, reducing both, theproblem of global warming and high unemploymentrates. In addition to domestic actions, international treaties on climate protectionallow for the supplementary use of flexibleinstruments to exploit cheaper emissionreduction possibilities elsewhere. One concreteoption for Germany would be to enter jointimplementation (JI) with developing countriessuch as India where Germany pays emissionreduction abroad rather than meeting itsreduction target solely by domestic action. Inthis paper, we investigate whether anenvironmental tax reform cum JI providesemployment and overall efficiency gains ascompared to an environmental tax reformstand-alone. We address this question in theframework of a large-scale general equilibriummodel for Germany and India where Germany mayundertake JI with the Indian electricitysector. Our main finding is that JI offsetslargely the adverse effects of carbon emissionconstraints on the German economy. JIsignificantly lowers the level of carbon taxesand thus reduces the total costs of abatementas well as negative effects on labor demand. Inaddition, JI triggers direct investment demandfor energy efficient power plants produced inGermany. This provides positive employmenteffects and additional income for Germany. ForIndia, joint implementation equips itselectricity industry with scarce capital goodsleading to a more efficient power productionwith lower electricity prices for the economyand substantial welfare gains. Copyright Kluwer Academic Publishers 2003 computable general equilibrium modeling, energy efficiency improvement, environmental tax reform, joint implementation, productivity gaps, 1 2003 24 1 Environmental and Resource Economics 49 76 http://hdl.handle.net/10.1023/A:1022849730905 text/html Access to full text is restricted to subscribers. Christoph Böhringer Klaus Conrad kconrad@rumms.uni-mannheim.de Andreas Löschel
oai:RePEc:kap:enreec:v:25:y:2003:i:1:p:79-1002022-12-21RePEc:kap:enreec
article Meta-Analytic Benefit Transfer of Outdoor Recreation Economic Values: Testing Out-of-Sample Convergent Validity A benefit transfer approach to recreationeconomic valuation using meta-analysis isexamined. Since the meta- regression modeltakes into account some of the study specificeffects on willingness to pay (WTP) estimates, benefit transfer using meta-analysis couldyield a valid WTP estimate of unstudiedrecreation resources. The convergent validityof the meta-analytic benefit transfer is testedusing out-of-sample original studies from theU.S. The analyses are performed usingpercentage difference, paired t-test, regression and correlation tests. The testsreveal mixed results on convergence betweenestimated WTP using meta-analytic benefittransfer function (BTF) and out-of-sampleoriginal WTP values. There is a fairly highpercentage difference between the estimated andoriginal WTP values (80–88%), and the meandifferences are statistically significant asshown by paired t-tests. However, correlationand regression results consistently showsignificant positive relationships betweennational BTF estimated and original WTP valuesindicating some level of convergence. Theresults show that the national BTF outperformthe regional BTF indicating a potential of thenational BTF for recreation benefit transferwhen a “first best” primary valuation study isnot affordable. Copyright Kluwer Academic Publishers 2003 benefit transfer function, meta-analysis, outdoor recreation, out-of-sample test, 1 2003 25 5 Environmental and Resource Economics 79 100 http://hdl.handle.net/10.1023/A:1023658501572 text/html Access to full text is restricted to subscribers. Ram Shrestha shrestha@ufl.edu John Loomis
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article Economic Potential of Biomass Based Fuels for Greenhouse Gas Emission Mitigation Use of biofuels diminishes fossil fuelcombustion thereby also reducing net greenhousegas emissions. However, subsidies are neededto make agricultural biofuel productioneconomically feasible. To explore the economicpotential of biofuels in a greenhouse gasmitigation market, we incorporate data onproduction and biofuel processing for thedesignated energy crops switchgrass, hybridpoplar, and willow in an U.S. AgriculturalSector Model along with data on traditionalcrop-livestock production and processing, andafforestation of cropland. Net emissioncoefficients on all included agriculturalpractices are estimated through crop growthsimulation models or taken from the literature. Potential emission mitigation policies ormarkets are simulated via hypothetical carbonprices. At each carbon price level, theAgricultural Sector Model computes the newmarket equilibrium, revealing agriculturalcommodity prices, regionally specificproduction, input use, and welfare levels, environmental impacts, and adoption ofalternative management practices such asbiofuel production. Results indicate no rolefor biofuels below carbon prices of $40 perton of carbon equivalent. At these incentivelevels, emission reductions via reduced soiltillage and afforestation are more costefficient. For carbon prices above $70, biofuels dominate all other agriculturalmitigation strategies. Copyright Kluwer Academic Publishers 2003 agricultural sector model, alternative energy, biofuel economics, biomass power plants, greenhouse gas emission mitigation, short rotation woody crops, switchgrass, 4 2003 24 4 Environmental and Resource Economics 291 312 http://hdl.handle.net/10.1023/A:1023632309097 text/html Access to full text is restricted to subscribers. Uwe Schneider schneider@dkrz.de Bruce McCarl mccarl@tamu.edu
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article Incomplete Enforcement of Pollution Regulation: Bargaining Power of Chinese Factories Only a limited number of papers haveempirically examined the determinants of themonitoring and enforcement activities performedby the environmental regulator. Moreover, mostof these studies have taken place in thecontext of developed countries. In this paper, we empirically examine the determinants of theenforcement of pollution charges in China.More precisely, we seek to identify thecharacteristics which may give firms more orless bargaining power with local environmentalauthorities pertaining to the enforcement(collection) of pollution charges. Firms fromthe private sector appear to have lessbargaining power than state-owned enterprises.Firms facing an adverse financial situationalso appear to have more bargaining power.Finally, we also show that the higher thesocial impact of a firm's emissions (asmeasured by the presence of complaints), thesmaller the bargaining power of the firms withlocal environmental authorities. Copyright Kluwer Academic Publishers 2003 bargaining power, enforcement, 3 2003 24 3 Environmental and Resource Economics 245 262 http://hdl.handle.net/10.1023/A:1022936506398 text/html Access to full text is restricted to subscribers. Hua Wang Nlandu Mamingi Benoit Laplante Susmita Dasgupta sdasgupta@worldbank.org
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article Social Versus Private Benefits of Energy Efficiency Under Time-of-Use and Increasing Block Pricing Abstract Many energy policies are implemented to subsidize the adoption of energy efficiency. However, when private benefits from energy efficiency exceed the social benefits, there is an incentive for the consumers to over-invest in energy efficiency; otherwise, there is an incentive to under-invest. This study adds to this discussion by providing an empirical estimation of the electricity savings and social benefits after energy efficiency retrofits for consumers on time-of-use (TOU) and increasing block pricing, respectively. We aim to examine how social versus private savings from a given energy efficiency measure may be different depending on different pricing plans. This study applies hourly electricity data for about 16, 000 residential consumers during 2013–2017 in Arizona. We show that for the TOU consumers, the private savings from energy-efficient AC retrofits are greater than the social savings by 61%, while the increasing block rate consumers’ private savings exceed the social savings by 46%, when other market failures are not considered (e.g., principal-agent problem and imperfect information). Different rate plans impose different marginal electricity prices which influence the incentives to invest in energy efficiency as well as electricity consumption behaviors that can influence both the private and social savings from energy efficiency. The result indicates that there should be potentially different levels of policy interventions towards energy efficiency for consumers on different pricing. Additionally, we also find that energy efficiency makes the electricity demand more elastic to price changes. Energy efficiency, Time-of-use, Increasing block rate, Private benefits, Social benefits, Price elasticity 1 2021 78 1 2 Environmental and Resource Economics 43 75 http://link.springer.com/10.1007/s10640-020-00524-y text/html Abstract Jing Liang jliang14@umd.edu University of Maryland College Park Yueming Qiu yqiu16@umd.edu University of Maryland College Park Bo Xing Bo.Xing@srpnet.com Salt River Project
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article The Effect of Risk Characteristics on the Willingness to Pay for Mortality Risk Reductions from Electric Power Generation The objective of this study is to estimate willingness to pay (WTP) for the reduction of mortality risks caused by fossil fuel (natural gas, coal and oil) versus nuclear electric power generation systems and to examine the influence of risk characteristics involved with electric power generation on WTP. A choice experiment was conducted to achieve these objectives. The attributes for nuclear risks in the experiment included the probability of disasters and the expected losses if a disaster occurs. We find evidence of (i) a baseline effect (where WTP is sensitive to hypothetical versus actual baseline expected mortality); (ii) a ‘labeling effect, ’ where, surprisingly, the term ‘nuclear’ has no effect on WTP, but the term ‘fossil-fueled power generation’ results in lower WTP; and (iii) disaster aversion, meaning that people focus on the conditional loss from a nuclear disaster, not the probability. We also find that the WTP for reducing deaths from a nuclear disaster is about 60 times the WTP for routine reducing fossil-fuel generation-related deaths. Copyright Springer 2006 choice experiment, coal-fired generation, mortality, nuclear power, risk characteristics, willingness to pay, 3 2006 33 03 Environmental & Resource Economics 371 398 http://hdl.handle.net/10.1007/s10640-005-3605-1 text/html Access to full text is restricted to subscribers. Kenshi Itaoka Aya Saito Alan Krupnick Wiktor Adamowicz vic.adamowicz@ualberta.ca Taketoshi Taniguchi
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article Missing Markets and Redundant Reservoirs This paper uses a two-sector, two-period, spatial model of groundwater usage withstochastic surface water supply to illustratethe potential for the suboptimal management ofthe timing of groundwater uses. A ``timeprofile externality'' is said to exist when thetiming of groundwater extraction by one set ofusers impacts on the time profile of wateravailability to another set of users. Theexistence of the time of use externalitydepends on the presence of importantdifferences in the preferences between thecontrol and non-control sectors. It alsodepends on the absence of the markets thatwould internalise these differences. Oneimportant implication of the existence of suchexternalities is that they can inducesub-optimal insurance investments in the formof water storage capital, i.e., unnecessarysurface water reservoirs. Copyright Kluwer Academic Publishers 2003 externalities, groundwater management, property rights, 1 2003 26 9 Environmental and Resource Economics 125 144 http://hdl.handle.net/10.1023/A:1025677419600 text/html Access to full text is restricted to subscribers. Ben Groom b.groom@ucl.ac.uk Tim Swanson Tim.Swanson@ucl.ac.uk
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article Improving Voluntary Public Good Provision Through a Non-governmental, Endogenous Matching Mechanism: Experimental Evidence Abstract Social norms can help to foster cooperation and to overcome the free-rider problem in the private provision of public goods. This paper focuses on the endogenous establishment of an average-oriented norm which sanctions deviations from average public good contributions. In a laboratory experiment, we analyse whether subjects are willing to implement a punishment and reward scheme at their own expense by applying the theory of non-governmental norm enforcement put forward by Buchholz et al. (J Public Econ Theory 16(6):899–916, 2014). Based on their theory, which omits a central authority but introduces an endogenously determined enforcement mechanism, we implement a two-stage public good game. In the first stage, subjects determine the strength of the sanctioning mechanism on their own. In the second stage, they decide on their personal contributions to the public good based on the established mechanism. In line with comparable pool punishment experiments, we find that subjects are apparently willing to contribute funds in order to establish a norm enforcement mechanism. Groups over-invest in the mechanism, but this over-investment decreases over time. These investments seem to be driven by the subjects’ previous individual contributions and partly by a number of strategic considerations, i.e. the previous average contribution made to the public good lowers the investment in the sanctioning mechanism. In the second stage of our experiment, higher norm enforcement parameters tend to lead to higher public good contributions. The earnings with the mechanism are on average higher than without. Conditional cooperation, Laboratory experiment, Public good, Matching mechanism, Social norms, Norm enforcement, Sanctioning 3 2017 67 7 8 Environmental and Resource Economics 559 589 C92 D03 D64 Z13 http://link.springer.com/10.1007/s10640-017-0126-7 text/html Abstract Christiane Reif reif@zew.de Centre for European Economic Research (ZEW) L7, 1 Dirk Rübbelke dirk.ruebbelke@vwl.tu-freiberg.de Technische Universität Bergakademie Freiberg Schloßplatz 1 Andreas Löschel loeschel@uni-muenster.de Centre for European Economic Research (ZEW) L7, 1 Westfälische Wilhelms-University Münster Am Stadtgraben 9
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article Incentives for Technology Adoption Under Environmental Policy Uncertainty: Implications for Green Payment Programs Water quality protection policy in the UnitedStates has been based on the provision offinancial incentives to farmers for adoptingimproved nutrient management practices.Increasing reliance on subsidy programs couldresult in expectations for such programs in thefuture. Using an option-value model thatindicates uncertainty can lead to a delay ininvestment, this paper analyzes the extent towhich uncertainty about cost-share subsidypolicies would impact adoption decision.Application of the model to adoption ofsite-specific technologies indicates thatuncertainty about subsidy policies has thepotential to impact the investment decision.When there is currently no cost-share subsidy, an increase in the probability of an expectedpolicy delays adoption. If the policy is ineffect, an increase in the probability of awithdrawal of the program encouragesinvestment. Cost-share subsidy policy is mosteffective when it is immediately offered andguaranteed that it will be removed soon. Copyright Kluwer Academic Publishers 2004 cost-share subsidy, policy uncertainty, real options, site-specific technologies, 3 2004 27 3 Environmental and Resource Economics 247 263 http://hdl.handle.net/10.1023/B:EARE.0000017624.07757.3f text/html Access to full text is restricted to subscribers. Murat Isik misik@uidaho.edu
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article Application of Sample Selection Model to Double-Bounded Dichotomous Choice Contingent Valuation Studies Modeling households' behavior with the data from a contingentvaluation (CV) survey is often complicated by samplenon-response, which can cause non-response bias and sampleselection bias, leading to inconsistent parameter estimates and adistorted mean willingness-to-pay estimate. This paper reportsthe results of empirical tests for both biases using householdsurvey data in which the double-bounded dichotomous choice CVquestion involved the benefit of a tap water quality improvementpolicy in Korea. No non-response bias, but sample selection bias, is detected in the sample. To correct for sample selection bias, a sample selection model is employed. The authors also discusshow failure to correct for bias may distort aggregate benefitestimates. Copyright Kluwer Academic Publishers 2001 contingent valuation, non-response, sample selection bias, tap water quality, 2 2001 20 10 Environmental and Resource Economics 147 163 http://hdl.handle.net/10.1023/A:1012625929384 text/html Access to full text is restricted to subscribers. Seung-Hoon Yoo shyoo@office.hoseo.ac.kr Hee-Jong Yang
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article Using Contingent Ranking to Estimate the Loss of Amenity Value for Inland Waterways from Public Utility Service Structures A contingent ranking exercise was used to estimate the amenity loss for recreational users associated with pylons, overhead cables and pipelines along canals. Over 80% of canal users were willing to pay higher utility bills to reduce the number of service structures found along canals. Aggregated across all canal users, mean annual willingness to pay for a 1% decrease in service structures was estimated to be nearly £750, 000. The implications of these findings could be significant in any future negotiations between British Waterways and those companies responsible for siting pipelines and cables along canals. Copyright Kluwer Academic Publishers 1998 contingent ranking, landscape, utilities, 2 1998 12 9 Environmental and Resource Economics 241 247 http://hdl.handle.net/10.1023/A:1008290112833 text/html Access to full text is restricted to subscribers. Guy Garrod Ken Willis
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article Flood Insurance Market Penetration and Expectations of Disaster Assistance Abstract Concern over resilience to natural disasters often focuses on moral hazard; expectations of disaster assistance may lead households in hazard-prone communities to forego insurance. This has been dubbed “charity hazard” in the literature on natural disasters. We examine flood insurance uptake using household level survey data and employ instrumental variables (related to local history of aid distribution and political economy) to address endogeneity of individual expectations of eligibility for disaster assistance. To avoid potential problems with reverse causation, we drop any households that could have received payments in the past (triggering mandatory flood insurance purchase). We find coastal households that exhibit positive expectations of disaster aid eligibility are 25 to 42 percent less likely to hold flood insurance. We estimate that charity hazard could be responsible for 817, 000 uninsured homes in the United States corresponding to a loss of $526 million in forgone annual revenue for the National Flood Insurance Program. Charity hazard, Flood insurance, Natural hazards 2 2021 79 6 7 Environmental and Resource Economics 357 386 Q54 G22 http://link.springer.com/10.1007/s10640-021-00565-x text/html Abstract Craig E. Landry clandry@uga.edu University of Georgia Dylan Turner dylan.turner25@uga.edu University of Georgia Daniel Petrolia d.petrolia@msstate.edu Mississippi State University
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article The Missing Pollution Haven Effect This paper examines the effect of recent increases inhazardous waste disposal taxes on employment growth inindustries that generate hazardous waste. Mostexisting literature has found that interjurisdictionaldifferences in environmental stringency havenegligible measurable economic consequences. Commonexplanations for this lack of effect include claimsthat (1) measures of environmental stringency arepoorly quantified, (2) compliance costs are modest, (3) variation in compliance costs among jurisdictionsis small, and (4) cross-section data are insufficientto explore the consequences of increasingly stringentstandards. This paper addresses these four concernsby quantifying hazardous waste disposal taxes, demonstrating that they are large and varied acrossjurisdictions in the United States, and showing thatthey have had a significant effect on hazardous wasteshipping among states. The paper then uses a panel ofstate and county-level data to show that despite thesefindings, state hazardous waste disposal taxes do notimpose large employment losses on industries thatgenerate waste. Copyright Kluwer Academic Publishers 2000 employment, hazardous waste, local environmental regulations, pollution tax, 4 2000 15 4 Environmental and Resource Economics 343 364 http://hdl.handle.net/10.1023/A:1008324605045 text/html Access to full text is restricted to subscribers. Arik Levinson amlevins@facstaff.wisc.edu
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article The Foreign Trade and Sectoral Impact of Truck Road Pricing for Cross-Border Trade Truck road pricing is on the brink of beingintroduced in a number of European countries.The experience gained from Switzerland, thefirst country worldwide to implement such adistant-dependent pricing scheme, has provedinvaluable. Nevertheless, significant questionsstill remain. The present paper attempts toprovide some clarity by analysing the welfareand sectoral impact resulting from theintroduction of truck road pricing with respectto foreign trade. It is shown that this impactcan be separated into four effects: the pureterms of trade effect, the tax revenue effect, the transit tax revenue effect and the resourcegain effect (resources set free by a reductionin transport activity). A CGE simulation ofeach of these effects identifies theirquantitative implications. Out of the foureffects the pure terms of trade effect turnsout to dominate at both the sectoral andaggregate level. It triggers a trade-inducedwelfare loss. The tax revenue effect, and lessso the transit revenue effect, mitigate thisloss. For a full road transport costinternalization a trade-induced welfare loss isquantified for Austria at 1.3%. Sensitivity ofthis and other aggregate variables is high withrespect to household reaction to transport taxrevenue refunding. The trade-induced welfareloss of variable size as explored in thisarticle counterbalances a fraction of thewelfare gain due to internalization. Copyright Kluwer Academic Publishers 2002 environmental policy, foreign trade, heavy goods vehicle tax, transport cost internalization, transport policy, 2 2002 23 10 Environmental and Resource Economics 213 253 http://hdl.handle.net/10.1023/A:1021263213158 text/html Access to full text is restricted to subscribers. Karl Steininger karl.steininger@uni-graz.at
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article Comparing Ranking and Contingent Valuation for Valuing Human Lives, Applying Nested and Non-Nested Logit Models The aim of this paper is to investigate whetherrespondents perceive a discrete-choice contingentvaluation (DC-CVM) question differently from a rankingquestion. We combine the two approaches to valuepublic projects that try to prevent people from dyingprematurely. The combined valuation procedure enablesus to investigate the internal consistency of theutility structure between choices, applying nested andnon-nested logit models. If the preference structureis allowed to shift, the relative utility weights ofthe attributes differ between the valuation questions, and the willingness-to-pay (WTP) estimate from thecombined procedure changes. Copyright Kluwer Academic Publishers 2000 contingent valuation, ranking, nested logit models, valuing human lives, 1 2000 17 9 Environmental and Resource Economics 1 19 http://hdl.handle.net/10.1023/A:1008336406885 text/html Access to full text is restricted to subscribers. Bente Halvorsen btl@ssb.no
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article Economic Growth, Inequality, Democratization, and the Environment We augment the Stokey (1998) model by allowingagents to differ with respect to environmentalquality and income in order to analyze theimpact of income and environmental inequality, and of democratization on aggregate pollution.We find that the impact of a more equal incomedistribution depends on the degree ofdemocracy. In a complete democracy a more equalincome distribution generates, ceterisparibus, less pollution, which is consistentwith indirect empirical evidence, whereas theopposite is the case if democratic rights arehighly restricted. Furthermore, ademocratization is argued to typically lowerboth the income and the environmental qualityof the median voter. In this case, if, inutility terms, the fall in environmentalquality is worse than the fall in consumptionthe median voter decides to tightenenvironmental legislation so that aggregatepollution decreases. Copyright Kluwer Academic Publishers 2003 economic growth and the environment, inequality, politics, 1 2003 25 5 Environmental and Resource Economics 1 16 http://hdl.handle.net/10.1023/A:1023658725021 text/html Access to full text is restricted to subscribers. Clas Eriksson clas.eriksson@ekon.slu.se Joakim Persson j.persson@fief.se
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article Mitigating Hypothetical Bias: Evidence on the Effects of Correctives from a Large Field Study Abstract The overestimation of willingness-to-pay (WTP) in hypothetical responses is a well-known finding in the literature. Various techniques have been proposed to remove or, at least, reduce this bias. Using about 30, 000 responses on WTP for a variety of power mixes from a panel of 6500 German households and the fixed-effects estimator to control for unobserved heterogeneity, this article simultaneously explores the effects of two common ex-ante approaches—cheap talk and consequential script—and the ex-post certainty approach to calibrating hypothetical WTP responses. Based on a switching regression model that accounts for the potential endogeneity of respondent certainty, we find evidence for a lower WTP among those respondents who classify themselves as definitely certain about their answers. Although neither cheap talk nor the consequential-script corrective reduce WTP estimates, receiving either of these scripts increases the probability that respondents indicate definite certainty about their WTP bids. Willingness-to-pay, Cheap talk, Certainty approach 3 2017 68 11 15 Environmental and Resource Economics 777 796 D12 Q21 Q41 http://link.springer.com/10.1007/s10640-016-0047-x text/html Abstract Mark A. Andor RWI - Leibniz Institut für Wirtschaftsforschung Manuel Frondel frondel@rwi-essen.de RWI - Leibniz Institut für Wirtschaftsforschung Ruhr University Bochum Colin Vance RWI - Leibniz Institut für Wirtschaftsforschung Jacobs University Bremen
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article Estimation of the value of the marginal product of emission in a country where emissions output is regulated — an empirical study Emissions resulting from the production process can be characterized as “use of the elimination and disposal services of the ecological system”. Hence, they are “use of natural resources” and thus an input to production. The present paper discusses an approach to evaluate the returns of these kind of services as a production factor. First, four main types of industrial emission are chosen —SO 2 , CO 2 , NO x andparticulate matter — and integrated in a Cobb-Douglas production function. With this approach, the production elasticities and the marginal product of these types of emission can be estimated. Based on these results and assuming that marginal product equals price, the demand curve for emission is estimated. With this demand curve the consequences of different kinds of environmental policy are considered. Under further assumptions of optimal behaviour it can be shown that the demand curve for emission is equal to the curve of marginal costs of avoidance (MCA). Thus, the estimates of the demand curves can be considered as estimates of the MCA-curves. Furthermore the price elasticities of these four types of emission are estimated with this approach. The method used in the paper is suggested for calibration of CGE models. Copyright Kluwer Academic Publishers 1995 Air-emission as a production factor, production function, emission tax, emission trading, price elasticity of emission, willingness to pay, marginal cost of avoidance, CGE modelling, 3 1995 5 4 Environmental & Resource Economics 305 319 http://hdl.handle.net/10.1007/BF00691522 text/html Access to full text is restricted to subscribers. Max Keilbach
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article Wood Fuel or Carbon Sink? Aspects of Forestry in the Climate Question This paper discusses and contrasts two mainroles of forestry in light of the debate on theglobal climate. As the main problem is relatedto the increases of the CO 2 -concentrationin the atmosphere, forests may be viewed aspart of the alleviation of the problem throughtheir function as (i) a source of biomass forenergy production, which may replace fossilfuels and thus indirectly reduceCO 2 -emissions, and as (ii) carbon storage, since a growing forest extracts atmosphericCO 2 and fixes it as carbon in biomass. Inthe Scandinavian forestry, logging residues areincreasingly being used for energy production.In this paper the value of forests as a sourceof bioenergy is added to the traditional timbervalue. Formulated as a joint production modelwithin the Faustmann framework, the effect ofthis addition on the optimal rotation length isdiscussed. Based on data for spruce, thedominant species in the Scandinavian forestry, it is demonstrated that the rotation length isshortened compared to the standard Faustmannmodel. Shorter rotation length implies lesscarbon storage. Therefore, in this modelwithout explicit regard to the social carbonstorage value of the forest, the gains in termsof the climate problem from utilisation offorest biomass for energy production are beingdiminished by the value of reduced carbonstorage. The carbon value of the forest is thenadded to complete the model, with the effect ofincreasing the rotation length, a result thatis well known in the literature. Finally, theempirical effects of the interaction of thesetwo climate-related value elements of theforest are discussed. Copyright Kluwer Academic Publishers 2002 bioenergy, climate, forestry, joint production, 4 2002 23 12 Environmental and Resource Economics 447 465 http://hdl.handle.net/10.1023/A:1021379306349 text/html Access to full text is restricted to subscribers. Even Bjørnstad eb@ntforsk.no Anders Skonhoft anders.skonhoft@svt.ntnu.no
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article Incentive Contracts and Environmental Performance Indicators A principal-agent (P-A) model is used to analyse the effect of environmentaldiligence, the principal (top management), having to use imperfectperformance indicators and fearing penalties for environmental damages, wants to avoid environmental harm and induce the agent (employeemanipulating hazardous materials) to take appropriate action. To motivatethe agent, the principal offers an incentive contract based onenvironmental stewardship performance (as measured by EPI).Environmental stewardship being difficult to measure, due to high levelsof uncertainty surrounding, EPI, creates impediments to the establishmentof an efficient P-A contract. Copyright Kluwer Academic Publishers 2001 compliance, environmental performance indicators, environmental risk, incentives, output uncertainty, principal-agent, 4 2001 20 12 Environmental and Resource Economics 259 279 http://hdl.handle.net/10.1023/A:1013065801547 text/html Access to full text is restricted to subscribers. Peter Goldsmith pgoldsmi@uiuc.edu Rishi Basak
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article The Worth of a Possum: Valuing Species with the Contingent Valuation Method The focus of this paper is on methods of assessing the value peopleplace on the conservation of species for use in policy making. Of principalinterest is the relatively new methodology of contingent valuation, whichis a method for asking people directly about their preferences. The paperpresents an application of the contingent valuation method to theconservation of an endangered species in the State of Victoria, Australia.The results emphasise the importance of careful survey design, implementation and analysis as well as the precise definition of theenvironmental good being valued. Consequently, the contingent valuationmethod does provide information relevant to decision making processesbased on monetary economic considerations. Thus, in orthodox economicterms it makes sense to conserve species – but there are other moral andethical grounds for conserving species as well. Copyright Kluwer Academic Publishers 2001 biodiversity, individual preferences, policy making, species conservation, 3 2001 19 7 Environmental and Resource Economics 211 227 http://hdl.handle.net/10.1023/A:1011128620388 text/html Access to full text is restricted to subscribers. Kristin Jakobsson Andrew Dragun
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article Nonseparable Utility and the Double Dividend Debate: Reconsidering the Tax-Interaction Effect The literature on the use of environmental taxes inthe presence of distortionary (labor) taxes warns thata partial-equilibrium Pigouvian tax analysis is notappropriate because increasing the price of dirtygoods can futher aggravate the prexisting distortions. This argument is most frequently made assuming thatlabor is taxed to meet a fixed revenue requirement.When a dirty good is also taxed, others argue thatthis lowers workers' real wages, causing people toreduce their labor supply below its already suboptimallevel, aggravating labor market distortions. However, most papers ignore the effect that a cleanerenvironment can have on labor supply. That is, mostpast work has assumed that the quality of theenvironment is weakly separable in the utilityfunction. We argue that a cleaner environment canincrease labor supply, at least partially offsettingany incentive for workers to decrease their laborsupply. Further, we show explicitly how relaxing theseparability assumption affects the standardresults. Copyright Kluwer Academic Publishers 2000 double dividend, environmental taxes, non-separable externalities, tax-interaction effect, 2 2000 15 2 Environmental and Resource Economics 149 157 http://hdl.handle.net/10.1023/A:1008314717413 text/html Access to full text is restricted to subscribers. Jesse Schwartz schwartz@econ.umd.edu Robert Repetto
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article Frontiers and sustainable economic development Exploiting new resource “frontiers, ” such as agricultural land and mineral reserves, is a fundamental feature of economic development in poor economies. Yet frontier-based development is symptomatic of a pattern of economy-wide resource exploitation in developing economies that: (a) generates little additional economic rents, and (b) what rents are generated are not being reinvested in other sectors. Such development is inherently unsustainable. The following paper explains this phenomenon, and provides evidence that long-run expansion of agricultural land and oil and natural gas proved reserves across poor economies is associated with lower levels of real income per capita. The paper proposes a frontier expansion hypothesis to explain why the structural economic dependence of these economies on frontier land expansion and resource exploitation is not conducive to sustained long-run growth. The key to sustainable economic development in poor economies will be improving the economic integration between frontier and other sectors of the economy, targeting policies to improved resource management in frontier areas and overcoming problems of corruption and rent-seeking in resource sectors. Copyright Springer Science+Business Media, Inc. 2007 Economic development, Frontier, Natural capital, Natural resources, Resource-abundant economies, Sustainable development, O13, O41, Q32, Q33, 1 2007 37 5 Environmental and Resource Economics 271 295 http://hdl.handle.net/10.1007/s10640-007-9120-9 text/html Access to full text is restricted to subscribers. Edward Barbier e-barbier@uwyo.edu
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article Environmental Research Joint Ventures under Emission Taxes The effect of environmentalpolicy depends crucially on the strategicbehavior of firms. Firms can undertakepollution abatement innovation cooperativelythrough environmental R&D joint ventures(RJVs). Environmental RJVs have not onlyenvironmental but also economic impacts. Threetypes of environmental RJV are discussed inthis paper: R&D cartelization in which firmschoose R&D efforts to maximize the jointprofit, RJV competition in which firms sharethe R&D fruits to maximize their own profits, and RJV cartelization in which firms share R&Dfruits and maximize the joint profit. An R&Dcartelization minimizes output quantities, maximizes the total emission, and minimizes thesocial surplus. An RJV cartelization with asufficiently high spillover coefficientmaximizes R&D efforts, minimizes the totalemission, and maximizes the social surplus. Copyright Kluwer Academic Publishers 2001 collaboration, coordination, Cournot competition, pollution abatement, R&D joint venture, strategic effect, 2 2001 20 10 Environmental and Resource Economics 129 146 http://hdl.handle.net/10.1023/A:1012637212545 text/html Access to full text is restricted to subscribers. Jiunn-Rong Chiou ierong@mail.tku.edu.tw Jin-Li Hu jinlihu@yahoo.com
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article Environmental Policies This paper analyses a model in which botheconomic and ecological relationships as wellas all the interactions between the two arefully specified. It compares the short termand the long term effects of shocks inenvironmental policies. It appears that shortrun effects may differ substantially fromlong run effects, with respect to both levelsand growth rates of various variables. Thoughin the short run growth optimists may beright, in the long run there appears to be, under the chosen specification, a trade-offbetween economic growth and environmentalquality. Copyright Kluwer Academic Publishers 2001 endogenous growth, environmental quality, renewable resources, sustainable development, 1 2001 20 9 Environmental and Resource Economics 1 26 http://hdl.handle.net/10.1023/A:1017564418680 text/html Access to full text is restricted to subscribers. Marjan Hofkes marjan.hofkes@ivm.vu.nl
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article Capacity Choice and the Theory of the Mine When extraction from mineral deposits is constrained byfixed capacity, an r-per-cent rule holds. This deposit-specific rule, however, is ``more partial'' than Hotelling's rule in that it is followed byprice takers and does not require price to adjust to produce equilibrium. Toobtain the resource rent to which the rule applies, the shadow value ofcapacity must be subtracted from the usual net price, i.e., price lessshort-run marginal cost. But the shadow value of capacity cannot becalculated from common depreciation formulas; an alternative method ofcalculating the shadow values is derived. The shadow value of reserves maybe increasing in the level of initial reserves. If there are increasingreturns to installing capacity, the value of the resource is not equal tothe discounted resource rent. Copyright Kluwer Academic Publishers 2001 capacity, constrained output, r-per-cent rule, 1 2001 18 1 Environmental and Resource Economics 129 148 http://hdl.handle.net/10.1023/A:1011114400536 text/html Access to full text is restricted to subscribers. Robert Cairns rcairns@leacock.lan.mcgill.ca
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article Factors Behind the Environmental Kuznets Curve. A Decomposition of the Changes in Air Pollution The environmental Kuznets curve theory suggeststhat economic growth in the long run may reduceenvironmental problems. In this article, we usea decomposition analysis to isolate eightdifferent factors, in order to investigate theorigins of changes in emissions to air over theperiod from 1980 to 1996. Among these factorsare economic growth, changes in the relativesize of production sectors and changes in theuse of energy. Given constant emissions perproduced unit, economic growth alone would havecontributed to a significant increase in theemissions. This potential degradation of theenvironment has been counteracted by first ofall more efficient use of energy and abatementtechnologies. In addition, the substitution ofcleaner for polluting energy types and othertechnological progressions and politicalactions have reduced the growth in emissions.Consequently, the growth in all emissions hasbeen significantly lower than economic growth, and negative for some pollutants.The results indicate that policymakers mayreduce emissions considerably through creatingincentives for lower energy use andsubstitutions of environmental friendly forenvironmental damaging energy types, inaddition to support environmental friendlyresearch or to conduct direct emission reducingactions, such as abatement requirements orbanning of environmental damaging products.This is particularly relevant to countries andsectors with relatively high energy intensitiesand low pollution abatement. Copyright Kluwer Academic Publishers 2003 decomposition, economic growth, energy intensity, environmental Kuznets curve, 1 2003 24 1 Environmental and Resource Economics 27 48 http://hdl.handle.net/10.1023/A:1022881928158 text/html Access to full text is restricted to subscribers. Annegrete Bruvoll agb@ssb.no Hege Medin hege.medin@nupi.no
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article Estimates of the Damage Costs of Climate Change, Part II. Dynamic Estimates Monetised estimates of the impact of climate change are derived. Impacts areexpressed as functions of climate change and `vulnerability'. Vulnerabilityis measured by a series of indicators, such as per capita income, populationabove 65, and economic structure. Impacts are estimated for nine worldregions, for the period 2000–2200, for agriculture, forestry, waterresources, energy consumption, sea level rise, ecosystems, fatal vector-borne diseases, and fatal cardiovascular and respiratory disorders.Uncertainties are large, often including sign switches. In the short term, the estimated sensitivity of a sector to climate change is found to be thecrucial parameter. In the longer term, the change in the vulnerability of thesector is often more important for the total impact. Impacts can be negativeor positive, depending on the time, region, and sector one is looking at.Negative impacts tend to dominate in the later years and in the poorerregions. Copyright Kluwer Academic Publishers 2002 adaptation, climate change, impacts, 2 2002 21 2 Environmental and Resource Economics 135 160 http://hdl.handle.net/10.1023/A:1014539414591 text/html Access to full text is restricted to subscribers. Richard Tol
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article Demand-Side Technology Standards Under Inefficient Pricing Regimes When price-setting regulators haveobjectives other than maximizing socialsurplus, the conservation potential ofdemand-side technology standards can besignificantly diminished. This paperdemonstrates this by empirically recovering thesocially sub-optimal preferences of a group ofwater managers in a groundwater-dependentregion of California and simulating theirinefficient price response to the mandatedadoption of low-flow appliances by homeowners. The resulting reduction in the conservationpotential of these appliances is quantified, and a modest tax is shown to be a relativelycost-effective policy tool for conservation. If non-price conservation policies arepreferred according to equity criteria, thepaper suggests that, in order to preserve theirconservation potential, policy-makers should berequired to continue to set prices as if notechnology standards had been introduced. Copyright Kluwer Academic Publishers 2003 demand-side technology standard, dynamic programming problem, efficient pricing, groundwater, 1 2003 26 9 Environmental and Resource Economics 107 124 http://hdl.handle.net/10.1023/A:1025689706396 text/html Access to full text is restricted to subscribers. Christopher Timmins christopher.timmins@yale.edu
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article Climate Action for (My) Children Abstract How do we motivate cooperation across the generations—between parents and children? Here we study voluntary climate action (VCA), which is costly to today’s decision-makers but essential to enable sustainable living for future generations. We predict that “offspring observability” is critical: parents will be more likely to invest in VCA when their own offspring observes their action, whereas when adults or genetically unrelated children observe them, the effect will be smaller. In a large-scale lab-in-the-field experiment, we observe a remarkable magnitude of VCA: parents invest 82% of their 69€ endowment into VCA, resulting in almost 14, 000 real trees being planted. Parents’ VCA varies across conditions, with the largest treatment effect occurring when a parent’s own child is the observer. In subgroup analyses, we find that larger treatment effects occur among parents with a high school diploma. Moreover, VCA for parents who believe in climate change is most affected by the presence of their own child. In contrast, VCA of climate change skeptical parents is most influenced by the presence of children to whom they are not related. Our findings have implications for policy-makers interested in designing programs to encourage voluntary climate action and sustaining intergenerational public goods. Children, Intergenerational cooperation, Lab-in-the-field experiment, Observability, Parents, Voluntary climate action 1 2022 81 1 5 Environmental and Resource Economics 95 130 http://link.springer.com/10.1007/s10640-021-00620-7 text/html Abstract Helena Fornwagner helena.fornwagner@ur.de University of Regensburg Oliver P. Hauser o.hauser@exeter.ac.uk University of Exeter
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article Factors Influencing Corporate Environmental Protection Activities for Greenhouse Gas Emission Reductions: The Relationship Between Environmental and Financial Performance This paper analyzes the relationship between a firm’s greenhouse gas (GHG) emissions and its profitability in Japanese manufacturing. Defining the difference between the marginal revenue and cost of reducing GHG emissions as the “net benefit, ” which is endogenously characterized by various factors, we estimate a switching regression model where the sign of the net benefit determines the relationship between GHG emissions and profitability. Our empirical analysis focuses on ISO 14001 adoption, market competition, uncertainty, financial flexibility, and share ownership structure as the factors, and indicates that firms with low firm-specific uncertainty, high financial flexibility, and a high proportion of large shareholders tend to have a nonnegative net benefit, so that the positive relationship between their GHG emissions and profitability is mitigated. On the other hand, although ISO 14001 adoption is generally considered to be an indicator of a firm’s stance on environmental proactiveness, it does not provide a sufficient incentive to reduce emissions. Factors such as uncertainty, financial flexibility, and share ownership structure are more important to GHG emission reductions. Copyright Springer Science+Business Media B.V. 2012 GHG emissions, Profitability, ISO 14001 adoption, Market competition, Uncertainty, Financial flexibility, Share ownership structure, Switching regression model, 4 2012 53 12 Environmental and Resource Economics 455 481 http://hdl.handle.net/10.1007/s10640-012-9571-5 text/html Access to full text is restricted to subscribers. Takashi Hatakeda hatakeda@kobe-u.ac.jp Katsuhiko Kokubu Takehisa Kajiwara Kimitaka Nishitani
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article The Impact of Choice Inconsistencies in Stated Choice Studies A new test procedure revealing mutuallyinconsistent choices has been developed andapplied to Stated Choice data. Our analysisshows that inconsistent choices commonly occurin several Stated Choice tasks. An applicationof the test to the Norwegian Value of Timestudy data shows that failing to excludeinconsistent choices resulted in asubstantially higher Value of time. Theinconsistent choices were made by less educatedparticipants. As the tasks were undertaken inthe easy context of choosing travelalternatives with three attributes, practitioners of more complex and cognitivedemanding designs should be particularilyconcerned with these results. Copyright Kluwer Academic Publishers 2002 choice experiments, inconsistencies, stated choice, task complexity, transitivity axiom, value of time, 4 2002 23 12 Environmental and Resource Economics 403 420 http://hdl.handle.net/10.1023/A:1021358826808 text/html Access to full text is restricted to subscribers. Kjartan Sælensminde ks@toi.no
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article On Environmental Taxation under Uncertain Environmental Damage This paper addresses optimal taxation, when therelationship between the consumption of a`dirty' good and the resulting environmentaldamage is uncertain and treated as a randomvariable by policy makers. The main purpose isto analyze how increased uncertainty, measuredas a mean preserving increase in the spread ofthis random variable, affects the optimalcommodity tax on the dirty consumption good. Incase the only task of government is to correctthe environmental externality, and if thepreferences are characterized by nondecreasingabsolute risk aversion, we find that thecommodity tax on the dirty consumption goodincreases in response to additionaluncertainty. If, on the other hand, thegovernment provides a public good and uses alump-sum tax in addition to the commodity tax, it is possible that the commodity tax decreasesas a response to additional uncertainty, evenif the preferences are characterized bynondecreasing absolute risk aversion. A similarresult emerges, although for different reasons, if the lump-sum tax is replaced by a laborincome tax. Copyright Kluwer Academic Publishers 2003 green taxes, optimal taxation, uncertainty, 2 2003 24 2 Environmental and Resource Economics 183 196 http://hdl.handle.net/10.1023/A:1022833723175 text/html Access to full text is restricted to subscribers. Thomas Aronsson thomas.aronsson@econ.umu.se Sören Blomquist
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article Willingness to Pay to Reduce Mortality Risks: Evidence from a Three-Country Contingent Valuation Study Valuing a change in the risk of death is a key input into the calculation of the benefits of environmental policies that save lives. Typically such risks are monetized using the Value of a Statistical Life (VSL). Since the majority of the lives saved by environmental policies are those of older persons, there has been much recent debate about whether the VSL should be lower for the elderly to reflect their fewer remaining life years. We conducted a contingent valuation survey in the UK, Italy and France designed to answer this question. The survey was administered in these three countries following a standardized protocol. Our results suggest that the VSL is €1.022 million or €2.264 million, depending on whether we use median or mean WTP. The VSL is not significantly lower for older persons, but is higher for persons who have been admitted to a hospital or emergency room for cardiovascular and respiratory problems. Income is positively and significantly associated with WTP. The income elasticities of the WTP increase gradually with income levels and are between 0.15 and 0.5 for current income levels in EU countries. We use the responses to the WTP questions to estimate the value of an extension in remaining life expectancy. The value of a loss of one year’s life expectancy is €54, 000 or €163, 000. Copyright Springer 2006 contingent valuation, life expectancy, risk reduction, value of a statistical life, willingness to pay, H41, H51, I18, I31, J17, 2 2006 33 02 Environmental & Resource Economics 251 264 http://hdl.handle.net/10.1007/s10640-005-3106-2 text/html Access to full text is restricted to subscribers. Anna Alberini aalberini@arec.umd.edu Alistair Hunt Anil Markandya
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article Does International Harmonization of Environmental Policy Instruments Make Economic Sense? Harmonization of the instruments used in environmental policy has beenconsidered necessary to guarantee “fair” competition in internationalmarkets. We examine the economic costs of harmonizing paper recyclingstandards in countries where the urgency of the waste disposal problemsdiffer. Using data of seven European countries we estimate thetechnologically feasible input combinations of pulp and waste paper forpaper production. Short-term effects of two environmental policy measures, minimum content requirement and utilization rate target, are analyzed. Bytranslating the two administrative instruments into taxes and subsidies, weshow that the shadow costs of the harmonization vary considerably betweencountries. The difference in the domestic availability of waste may explainthe variation, and a modification of the policy measures to incorporate thisaspect is suggested. Copyright Kluwer Academic Publishers 2002 environmental policy harmonization, recycling, standards, subsidies, taxes, waste paper, 3 2002 21 3 Environmental and Resource Economics 259 284 http://hdl.handle.net/10.1023/A:1014585213584 text/html Access to full text is restricted to subscribers. Anni Huhtala anni.huhtala@konj.se Eva Samakovlis
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article Capacity and Capacity Utilization in Common-pool Resource Industries Excess capacity poses one of the most pressingproblems that arise when industries exploitcommon-pool natural resources. It entailsover-investment in the capital stock andexcessive use of variable inputs, and placesadditional exploitation pressures on theresource stocks. Confusion persists over theappropriate definition and measurement ofcapacity and capacity utilization for theseindustries. But understanding capacity and itsmeasurement is necessary to properly design acapacity management program. This paperaddresses these issues by overviewing theconceptual and theoretical bases for capacityand capacity utilization measurement, identifying specific problems for common-poolresources, outlining alternative methodologiesfor their measurement, and illustrating the useof these definitions and measurement methods ina fisheries case study. Copyright Kluwer Academic Publishers 2002 capacity, capacity utilization, common-pool resources, efficiency, fisheries, 1 2002 22 6 Environmental and Resource Economics 71 97 http://hdl.handle.net/10.1023/A:1015511232039 text/html Access to full text is restricted to subscribers. James Kirkley Catherine Morrison Paul cjmpaul@primal.ucdavis.edu Dale Squires
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article Bioenergy Crop Production in the United States: Potential Quantities, Land Use Changes, and Economic Impacts on the Agricultural Sector The U.S. Departments of Agriculture and Energyjointly analyzed the economic potential for, and impacts of, large-scale bioenergy cropproduction in the United States. Anagricultural sector model (POLYSYS) wasmodified to include three potential bioenergycrops (switchgrass, hybrid poplar, and willow). At farmgate prices of US $2.44/GJ, anestimated 17 million hectares of bioenergycrops, annually yielding 171 million dry Mg ofbiomass, could potentially be produced at aprofit greater than existing agricultural usesfor the land. The estimate assumes highproductivity management practices are permittedon Conservation Reserve Program lands. Traditional crops prices are estimated toincrease 9 to 14 percent above baseline pricesand farm income increases annually by US $6.0billion above baseline.At farmgate prices of US $1.83/GJ, anestimated 7.9 million hectares of bioenergycrops, annually yielding 55 million dry Mg ofbiomass, could potentially be produced at aprofit greater than existing agricultural usesfor the land. The estimate assumes managementpractices intended to achieve highenvironmental benefits on Conservation ReserveProgram lands. Traditional crops prices areestimated to increase 4 to 9 percent abovebaseline prices and farm income increasesannually by US $2.8 billion above baseline. Copyright Kluwer Academic Publishers 2003 agricultural income, bioenergy crops, biomass, Conservation Reserve Program, hybrid poplar, land-use changes, switchgrass, willow, 4 2003 24 4 Environmental and Resource Economics 313 333 http://hdl.handle.net/10.1023/A:1023625519092 text/html Access to full text is restricted to subscribers. Marie Walsh Daniel de la Torre Ugarte Hosein Shapouri Stephen Slinsky
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article Supply and Social Cost Estimates for Biomass from Crop Residues in the United States The components of social costsincluded in the supply analysis are cashoutlays and opportunity costs associated withharvest and alternative residue uses, potentialenvironmental damage that is avoided byexcluding unsuitable land, and costs in movingresidues from farms to processing plants. Regional estimates account for the growingconditions and crops of the main agriculturalareas of the United States. Estimates includethe main U.S. field crops with potential forresidue harvest: corn, wheat, sorghum, oats, barley, rice and cane sugar. The potentialcontribution of residues to U.S. energy needsis discussed. Copyright Kluwer Academic Publishers 2003 biomass supply, crop residues, renewable fuels, sustainable land use, United States agriculture, 4 2003 24 4 Environmental and Resource Economics 335 358 http://hdl.handle.net/10.1023/A:1023630823210 text/html Access to full text is restricted to subscribers. Paul Gallagher paulg@iastate.edu Mark Dikeman John Fritz Eric Wailes Wayne Gauthier Hosein Shapouri
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article International Management of North-Sea Herring North-Sea herring is a transboundary resource, shared by the EU and Norway. The purpose ofthis paper is to investigate how the harvestsor total allowable catch quotas (TACs) for thisspecies should be divided between these twojurisdictions so that both parties aresatisfied. We apply a discrete-timegame-theoretic model in which we show that theEU should be allocated more than half of theTAC even if the EU has higher harvesting costs.This result is due to the distribution patternof the herring, with a larger share of herringlocated in the EU zone. However, we find thataccording to the Nash bargaining solution, thecurrent sharing allocates too large a share tothe EU. Copyright Kluwer Academic Publishers 2004 fisheries, game theory, international management, North-Sea herring, shared stocks, 1 2004 29 9 Environmental and Resource Economics 83 96 http://hdl.handle.net/10.1023/B:EARE.0000035442.52698.7d text/html Access to full text is restricted to subscribers. Trond Bjørndal Marko Lindroos marko.lindroos@helsinki.fi
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article Economic Assessment of the Recreational Value of Ecosystems: Methodological Development and National and Local Application We present a novel methodology for spatially sensitive prediction of outdoor recreation visits and values for different ecosystems. Data on outset and destination characteristics and locations are combined with survey information from over 40, 000 households to yield a trip generation function (TGF) predicting visit numbers. A new meta-analysis (MA) of relevant literature is used to predict site specific per-visit values. Combining the TGF and MA models permits spatially explicit estimation of visit numbers and values under present and potential future land use. Applications to the various land use scenarios of the UK National Ecosystem Assessment, as well as to a single site, are presented. Copyright Springer Science+Business Media Dordrecht 2014 Recreation, Recreational value, Ecosystem services , UK National Ecosystem Assessment, Meta-analysis, Spatially sensitive, 2 2014 57 2 Environmental and Resource Economics 233 249 http://hdl.handle.net/10.1007/s10640-013-9666-7 text/html Access to full text is restricted to subscribers. Antara Sen a.sen@uea.ac.uk Amii Harwood Ian Bateman Paul Munday Andrew Crowe Luke Brander Jibonayan Raychaudhuri Andrew Lovett Jo Foden Allan Provins
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article Landfilling Versus ``Backstop'' Recycling When Income Is Growing The paper considers a dynamic model in which an income stream, growing over time, is optimally divided into consumption andexpenditures on waste disposal, the latter being optimally dividedbetween ``recycling''and ``landfilling.'' Recycling is thoughtof as a ``backstop'' waste disposal technology – it does notrequire landfill space but is a relatively expensive method ofwaste disposal. Landfilling uses up scarce landfill capacity. While conserving landfill space is the major reason themunicipality recycles, another motive for recycling might be thatrecycling itself generates utility. Our analysis suggests thatthe optimal recycling program varies considerably with bothlandfill capacity and initial income. For example, richermunicipalities are likely to introduce recycling much earlier inthe planning period than poorer municipalities. Thus whenlegislating recycling, national or regional governments must besensitive to the differences between municipalities. Copyright Kluwer Academic Publishers 2001 income, landfill, municipal, recycling, waste management, 1 2001 19 5 Environmental and Resource Economics 37 52 http://hdl.handle.net/10.1023/A:1011158511648 text/html Access to full text is restricted to subscribers. Jannett Highfill highfill@bradley.edu Michael McAsey mcasey@bradley.edu
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article Market Power in Laboratory Emission Permit Markets Many proposals suggesting the use of markets tocontrol pollution assume markets will becompetitive. When markets do not exhibitcompetitive characteristics, however, shouldthey still be expected to result in efficiencyimprovement relative to traditional approaches? This paper employs experimental economicmethods to examine the effect of marketstructure on the use of marketable emissionspermits. Results indicate that in a market withone dominant firm and a number of fringe firms, strategic manipulation occurs repeatedly in thelaboratory as predicted by market power models, undermining the allocative and dynamicefficiency benefits such markets offer. Whenfirms compete in a downstream product marketdominated by the same single firm, marketefficiency can actually be reduced with theimplementation of permit markets. Final marketefficiencies reflect initial endowments and areinfluenced by competitive conditions elsewherein the economy, indicating that policy-makersshould carefully consider whether markets areappropriate in such circumstances. Copyright Kluwer Academic Publishers 2002 cost predation, double auctions, emission trading, market experiments, market power, vertical integration, 3 2002 23 11 Environmental and Resource Economics 279 318 http://hdl.handle.net/10.1023/A:1021263009621 text/html Access to full text is restricted to subscribers. Robert Godby rgodby@uwyo.edu
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article Examining Trends of Criteria Air Pollutants: Are the Effects of Governmental Intervention Transitory? Despite its growth in other areas of economics, time series econometric methods have not beenwidespread in the area of environmental andresource economics. We illustrate one use oftime series methods by examining the time pathof US nitrogen oxide (NO x ) emission dataover the period 1900–1994. The analysishighlights that proper time series methods canaid in optimal regulatory policy as well asdeveloping empirical verification of theoriesput forth to explain economic phenomena. Inaddition, several interesting results emerge. First, we find that the emissions seriescontains both a permanent and random component. Second, if one attributed all of the emissionsreductions to regulatory policy, interventionanalysis suggests that the 1970 Clean Air Act(CAA) did not merely have transitory effects, but permanently influenced the NO x emission path. In terms of total regulatoryimpact, an upper bound on the emissions saveddue to the 1970 CAA is in the range of27%–48%. Copyright Kluwer Academic Publishers 2004 emissions, intervention analyses, time-series models, 1 2004 29 9 Environmental and Resource Economics 21 37 http://hdl.handle.net/10.1023/B:EARE.0000035427.22165.3b text/html Access to full text is restricted to subscribers. Junsoo Lee jlee@cba.ua.edu John List
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article Policy Instruments for Groundwater Management in the Netherlands In the Netherlands agriculture andnature have conflicting interests with respectto groundwater management. Insight into thesuitability of policy instruments to achieveoptimal groundwater level and extractionmanagement in the Netherlands is, however, missing. In this paper the suitability ofpolicy instruments for groundwater managementis studied. Changes in the institutionalenvironment and voluntary agreements seem to bemore suitable for groundwater level managementthan economic instruments. The currenthistorical groundwater extraction rightssystems together with the low groundwaterprices encourage low-value agriculturalgroundwater usage, whereas sprinkling bans andirrigation scheduling currently aim to reducelow-value use of groundwater. These extractioninstruments are less efficient than a systemthat considers externalities in the price ofwater or diverts water away from agriculturewhile encouraging trading. Copyright Kluwer Academic Publishers 2003 agriculture, efficiency, policy instruments, water management, 1 2003 26 9 Environmental and Resource Economics 163 172 http://hdl.handle.net/10.1023/A:1025685621417 text/html Access to full text is restricted to subscribers. Petra Hellegers petra.hellegers@wur.nl Ekko van Ierland
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article Time is Money: Improved Valuation of Time and Transportation Costs The proper valuation of time isimportant for estimating the demand for severaleconomic goods. This paper explores the propervaluation of time when estimating recreationaldemand, where time costs represent asubstantial portion of the ``purchase price''. Toestimate demand, this paper uses a travel costframework to analyze actual behavior (``revealedpreference data'') and hypothetical behavior(``stated preference data''), which is induced byhypothetical increases in access fees, traveltime, and travel distance. By comparing theresponses to these three contingencies, theanalysis adjusts and improves the valuation oftime costs. As evidence of this improvement, this analysis demonstrates a great increase inthe consistency between the revealed and stateddata. Similarly, this paper improves thevaluation of transportation-related costs. Copyright Kluwer Academic Publishers 2004 preference, recreation, revealed, stated, time, 2 2004 29 10 Environmental and Resource Economics 159 190 http://hdl.handle.net/10.1023/B:EARE.0000044604.77782.6b text/html Access to full text is restricted to subscribers. Dietrich Earnhart earnhart@ku.edu
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article An Environmental Macro-Economic Model for the Construction Sector This article describes theeconomic-ecological model BASIS, which handles theconstruction sector, its consumption of materials, and the resultant environmental effects. The modelis a satellite model of the macro-economic modelADAM. The building materials examined are plastic, metal and concrete, each of which result in variousemissions that impact upon the environment andhealth. Materials consumption and energy consumptionare central environmental parameters, and can beconsidered both as indicators of environmentalpressure per se, and as explanatory variables forvarious types of emissions and waste generation. Thearticle documents BASIS and illustrates itscharacteristics through a number of scenarios. Thescenarios examine the effects of changes in variousmacro-economic variables and of environmentalpolicy-based levies. Copyright Kluwer Academic Publishers 2000 construction, environmental effects, macro-economic model, material input, 4 2000 15 4 Environmental and Resource Economics 323 341 http://hdl.handle.net/10.1023/A:1008395407927 text/html Access to full text is restricted to subscribers. Mette Wier mw@akf.dk
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article Does the Energy-Efficiency Paradox Exist? Technological Progress and Uncertainty We explain why firms may choose not to undertake investments inenergy-saving technologies that appear profitable from a net presentvalue perspective. As future technological advances are inherentlyuncertain and investments in new technology are, at least partly, irreversible, it may ``pay'' to postpone investments in energy savingand wait for the arrival of improved varieties. This insight casts doubton the existence of so-called ``low hanging fruits in energy saving''(although we do not wish to deny that organisational failures may alsobe important). Failure to appreciate the underlying stochasticity oftechnological progress may obscure the insight that there is value inwaiting, and costs involved in terminating the option to invest. Theappetite for low-hanging fruits will be less when these costs areincorporated in the analysis. We demonstrate that the effect of thearrival rate of new technologies on the adoption lag for a rational firmis ambiguous. The same holds for the effect of the expected ``jump'' inefficiency of new technologies. Government policies aimed at enhancingthe adoption of new technologies through stimulation of R&D maytherefore be counterproductive. Copyright Kluwer Academic Publishers 2001 energy saving, energy efficiency, technological change, 1 2001 18 1 Environmental and Resource Economics 101 112 http://hdl.handle.net/10.1023/A:1011112406964 text/html Access to full text is restricted to subscribers. Daan van Soest d.p.vansoest@kub.nl Erwin Bulte
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article Tradable Discharge Permit System for Water Pollution: Case of the Upper Nanpan River of China A discharge permit system for water pollution of theupper Nanpan River has been tested since 1992. Thispaper proposed the shift of the current non-tradablepermits to tradable permits to attain the samepollution reduction targets at a lower cost. It wasfound that this river appeared good for trading. Apilot trading program for point sources was thenrecommended to a smaller trading zone. There would beten potential trades for chemical oxygen demanddischarge, gaining an annual cost-saving of ChineseYuan 2.4 million, or saving 18.4% of the total annualcost to attain the reduction target without trading.The marginal pollution reduction cost was estimated atChinese Yuan 959 for one kilogram chemical oxygendemand per day. Meanwhile, `without trading' and `withtrading' scenarios would bring about 900.9 kg/day and51.5 kg/day of redundant reduction respectively. Thenet annual benefit arising from trading, about ChineseYuan 1.6 million, would still be significant. At last, the study recommended that compliance monitoring andexecuting institution requirements be kept in mindwhile designing the program. An information systemneeds to be established to provide potentialparticipants relevant information. The method ofpermit allocation and lifespan of permits should alsobe addressed later. Copyright Kluwer Academic Publishers 2000 permit system, point/point source trading, pollution reduction cost, 1 2000 15 1 Environmental and Resource Economics 27 38 http://hdl.handle.net/10.1023/A:1008348400728 text/html Access to full text is restricted to subscribers. Wendong Tao wtao@public.km.yn.cn Bo Zhou wtao@public.km.yn.cn William Barron Weimin Yang wtao@public.km.yn.cn
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article A Bioeconomic Analysis of the Northern Baltic Salmon Fishery: Coexistence versus Exclusion of Competing Sequential Fisheries We develop a bioeconomic model of the northern Balticsalmon fishery that takes into account thesimultaneous harvest of wild and reared salmon. Weassess the optimal harvest allocation between thecommercial offshore, inshore, and estuary fisheries, and the recreational river fishery that sequentiallyharvest the salmon stock. We restrict the solution tospawning stocks sufficient to preserve the wildsalmon. Empirical results suggest closure of theoffshore and inshore fisheries. Optimal managementenhances the wild stock, and results in substantialeconomic gains to the fishery. Current fisheryregulation improves the performance of the fisheryover open access, but fails to utilize the fullproductive potential of the resource. Copyright Kluwer Academic Publishers 2001 harvest allocation, sequential fisheries, optimal exploitation, Baltic salmon, 3 2001 18 3 Environmental and Resource Economics 293 315 http://hdl.handle.net/10.1023/A:1011164523802 text/html Access to full text is restricted to subscribers. Marita Laukkanen laukkane@are.berkeley.edu
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article Plant Level Productivity, Efficiency, and Environmental Performance of the Container Glass Industry This paper presents a methodology and empirical results based on theMalmquist productivity index. We measure productivity while treatingpollution as an undesirable output. Our estimates show that technicalchange has contributed to productivity and environmental performancegrowth in the container glass industry, an energy and pollution intensivesector. Changes in inter-plant efficiency over time have made thisproductivity growth more rapid than otherwise would have occurred withthe underlying technical change. The efficiency estimates show that thereare both opportunities to improve productivity and reduce pollution in thisindustry, as well as productivity losses associated with the emissionscontrol. The shadow prices for NOx, the undesirable output we analyze, is quite high compared to other regulated sectors. Copyright Kluwer Academic Publishers 2002 malmquist index, marginal abatement costs, productivity, 1 2002 23 9 Environmental and Resource Economics 29 43 http://hdl.handle.net/10.1023/A:1020236517937 text/html Access to full text is restricted to subscribers. Gale Boyd George Tolley Joseph Pang
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article An Econometric Estimation of Industrial Water Demand in France This study investigates the structure of industrial water demand byestimating the derived demand for water on a sample of industrialestablishments located in the south-west of France. Productiontechnologies are represented by short-term variable cost functions andapproximated by a translog form. Industrial water use is modeled ashaving three components: the quantity of water bought to a waterutility, the quantity of autonomous water and the quantity of watertreated prior to use. We include in this framework water effluents, which are considered as a by-product of the production process, emittedby firms. Each of the three water components is treated as a separateinput and all are estimated as a system of simultaneous equations. Themodel is estimated on a sample of 51 industrial plants in the Girondedistrict observed from 1994 to 1996 using Seemingly Unrelated Regression(SUR) and Feasible Generalized Least Squares (FGLS). Results ofestimations show that industrial firms are sensitive to water priceinputs. Network water elasticity is estimated at −0.29. It variesfrom −0.10 to −0.79 according to the type of industryconsidered. Autonomous water price elasticity is not significant.Elasticity for treated water is evaluated at −1.42 at themean-sample and varies from −0.90 to −2.21 according to theindustry considered. Copyright Kluwer Academic Publishers 2003 cost function, industrial water demand, panel data, translog form, water, 2 2003 25 6 Environmental and Resource Economics 213 232 http://hdl.handle.net/10.1023/A:1023992322236 text/html Access to full text is restricted to subscribers. Arnaud Reynaud areynaud@toulouse.inra.fr
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article Reconsidering Environmental Policy: Prescriptive Consequentialism and Volitional Pragmatism Prescriptive consequentialism informs currentassessments of rational action in economics. Choice is alleged to start with stable andknown preferences over alternative outcomes, and rational agents choose actions thatmaximize well being with respect to thesepreferences. Evidence suggests that thisformulation fails as an accurate and reliabledescription of how individuals make choices, and this formulation seems particularly at oddswith collective decision making with respect toenvironmental policy. Pragmatism, an importantbranch of philosophy, offers a theory of humanaction that economists would find helpful. This promise is especially pertinent to effortsdevoted to the assignment of values to parts ofnature, and to environmental policy in general. Copyright Kluwer Academic Publishers 2004 collective action, consequentialism, environmental policy, pragmatism, volitional pragmatism, 1 2004 28 5 Environmental and Resource Economics 73 99 http://hdl.handle.net/10.1023/B:EARE.0000023821.33379.b7 text/html Access to full text is restricted to subscribers. Daniel Bromley bromley@aae.wisc.edu
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article Regulation of Public Utilities under Asymmetric Information We consider the relationship between a localcommunity and a private operator in charge ofthe water utility. An important feature of themodel is the possibility of water networklosses that are costly to the operator. Wecompute the first-best and asymmetricinformation solutions to the optimal contract, with private information on the operator'stechnology. Based on an econometric estimationof production cost and water demand for a panelof French local communities, we simulate theoptimal contract solutions and show thatasymmetric information has importantconsequences for the regulation of water publicutilities. Copyright Kluwer Academic Publishers 2003 contract, environment, information, regulation, water, 1 2003 26 9 Environmental and Resource Economics 145 162 http://hdl.handle.net/10.1023/A:1025629503671 text/html Access to full text is restricted to subscribers. Serge Garcia sgarcia@toulouse.inra.fr Alban Thomas thomas@toulouse.inra.fr
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article Implicit Valuation of Non-Market Benefits in Even-Aged Forest Management Choosing the optimal harvesting time in multiple-use, even-aged forest management is an important but difficult problem. The usual formulation of the problem requires explicit knowledge of the value of the timber, plus the value of the other, non-timber and mainly non-market values. The latter are notoriously difficult to measure. This paper develops a harvesting rule that depends only implicitly on the flow of non-market values. The rule, dubbed the “implicit value formula, ” gives the minimum stream of non-market values that would induce a landowner to adopt a given rotation length. Since harvesting decisions must be made with or without information on non-market values, the implicit value formula can provide guidance to forest managers by putting a lower bound on the non-market values for every rotation length. As a demonstration, implicit non-market values are calculated for Douglas fir. The implicit value formula indicates that preserving a forest of Douglas fir beyond the optimal rotation is much more expensive than harvesting it an equivalent length of time before the optimal rotation. Copyright Kluwer Academic Publishers 1999 Faustmann formula, optimal rotation, 1 1999 13 1 Environmental and Resource Economics 95 105 http://hdl.handle.net/10.1023/A:1008241919453 text/html Access to full text is restricted to subscribers. David Dole ddole@iname.com
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article Flexible Water Sharing within an International River Basin Increasing scarcity of water resources, and greatervariability in available water supply, are causingacute difficulties for allocation agreements amongusers of water bodies. One cause of controversy, especially for river waters, is the inability of mostallocation operations to accommodate variations inconditions. In this paper we develop a flexiblemechanism that produces a Pareto-efficient allocationfor every possible flow volume in a river. Extensionsto accommodate other kinds of variation, such as waterdemand, are feasible. The mechanism is demonstratedusing historical water flow data for the Ganges, basedon stylized water demand relationships for India andBangladesh. Quantitative comparison between fixed andvariable allocation suggests that variable allocationsubstantially outperforms fixed allocation, improvingregional welfare by at least ten percent. Copyright Kluwer Academic Publishers 2001 1 2001 18 1 Environmental and Resource Economics 43 60 http://hdl.handle.net/10.1023/A:1011100130736 text/html Access to full text is restricted to subscribers. D. Kilgour Ariel Dinar adinar@worldbank.org
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article Do Open Access Conditions Affect the Valuation of an Externality? Estimating the Welfare Effects of Mangrove-Fishery Linkages in Thailand Mangroves are considered ecologicallyimportant due to their role as breedinggrounds and nursery habitats for off-shorefisheries. However, mangrove deforestationthrough conversion to shrimp aquaculturethreatens this valuable function. This paperdevelops a ‘dynamic’ production functionapproach to analyze the influence of habitatchanges on an open access fishery that faces afinite elasticity of demand. The basic modelis applied to a case study of the impacts ofmangrove deforestation on the artisanal marinedemersal and shellfish fisheries in Thailand. By estimating parameters through pooledtime-series and cross-sectional data over the1983–1993 period for the five coastal zones ofSouthern Thailand, the welfare impacts ofmangrove deforestation are estimated underdifferent elasticity of demand assumptions. Under pure open access, the welfare lossesestimated for mangrove deforestation inThailand of 30 km 2 annually ranged from$12, 000 to $408, 000 depending on theelasticity of demand. Copyright Kluwer Academic Publishers 2002 deforestation, habitat-fishery linkages, mangroves, open access fisheries, production function approach, Thailand, 4 2002 21 4 Environmental and Resource Economics 343 365 http://hdl.handle.net/10.1023/A:1015129502284 text/html Access to full text is restricted to subscribers. Edward Barbier Ivar Strand Suthawan Sathirathai
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article Property Rights and Natural Resource Conservation. A Bio-Economic Model with Numerical Illustrations from the Serengeti-Mara Ecosystem This study develops a model for wildlifemigrating seasonally between a conservationarea and a neighbouring area. When beingoutside the conservation area, harvesting takesplace by a group of small-scale farmers. Thelocal people have two motives for harvesting;to get rid of ``problem'' animals as roamingwildlife destroys crops and agriculturalproducts, and hunting for meat and trophies.Depending on the specification of the propertyrights, the harvesting is legal or illegal. Itis demonstrated that it is far from clear whichof the two property rights regimes that givesthe highest wildlife abundance. Hence, contraryto what is argued for in the literature, handing the property rights over to the localpeople means not automatically more wildlifeand a more ``sustainable'' resource utilization.The reason lies in the nuisance motive forharvesting. The exploitation under the twodifferent property rights regimes areillustrated by numerical calculations with datathat fits reasonable well with the exploitationof the wildebeest population in theSerengeti-Mara ecosystem. Copyright Kluwer Academic Publishers 2004 bio-economics, property rights, Serengeti, wildlife, 4 2004 28 8 Environmental and Resource Economics 469 488 http://hdl.handle.net/10.1023/B:EARE.0000036774.15204.49 text/html Access to full text is restricted to subscribers. Anne Johannesen Anders Skonhoft anders.skonhoft@svt.ntnu.no
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article The Impact of the Wuhan Covid-19 Lockdown on Air Pollution and Health: A Machine Learning and Augmented Synthetic Control Approach Abstract We quantify the impact of the Wuhan Covid-19 lockdown on concentrations of four air pollutants using a two-step approach. First, we use machine learning to remove the confounding effects of weather conditions on pollution concentrations. Second, we use a new augmented synthetic control method (Ben-Michael et al. in The augmented synthetic control method. University of California Berkeley, Mimeo, 2019. https://arxiv.org/pdf/1811.04170.pdf ) to estimate the impact of the lockdown on weather normalised pollution relative to a control group of cities that were not in lockdown. We find NO $$_{2}$$ 2 concentrations fell by as much as 24 $$\upmu$$ μ g/m $$^3$$ 3 during the lockdown (a reduction of 63% from the pre-lockdown level), while PM10 concentrations fell by a similar amount but for a shorter period. The lockdown had no discernible impact on concentrations of SO $$_{2}$$ 2 or CO. We calculate that the reduction of NO $$_{2}$$ 2 concentrations could have prevented as many as 496 deaths in Wuhan city, 3368 deaths in Hubei province and 10, 822 deaths in China as a whole. Air pollution, Covid-19, Machine learning, Synthetic control, Health 4 2020 76 8 4 Environmental and Resource Economics 553 580 Q53 Q52 I18 I15 C21 C23 http://link.springer.com/10.1007/s10640-020-00483-4 text/html Abstract Matthew A. Cole m.a.cole@bham.ac.uk University of Birmingham Robert J R Elliott r.j.elliott@bham.ac.uk University of Birmingham Bowen Liu BXL720@student.bham.ac.uk University of Birmingham
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article Preferences in the Future Environmental economics has been much occupied with “the discount rate, ” which is the value of future costs and benefits relative to present costsor benefits. But at least as important is the question of whatshould be discounted, that is, what the value of those future environmentalbenefits is to future generations. This paper analyzes the role for futurepreferences and discusses the state of knowledge. I argue that theappropriate discount rate is the market one, and that the real problemis determining future willingness-to-pay. This approach makes clearerthe connection between discounting and the valuation debate. This paper focuses on two features that have been prominent in that debate:existence value and reference dependence. I argue that thereis a vital connection between the two constructs and that this link yieldsimportant implications for future willingness-to-pay. Copyright Kluwer Academic Publishers 2002 discount rate, environmental valuation, existence value, future preferences, paternalistic altruism, reference dependence, 3 2002 21 3 Environmental and Resource Economics 241 258 http://hdl.handle.net/10.1023/A:1014592629514 text/html Access to full text is restricted to subscribers. J.K. Horowitz horowitz@arec.umd.edu
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article Does Decentralized and Voluntary Commitment Reduce Deforestation? The Effects of Programa Municípios Verdes Abstract One-third of total CO2 emissions from deforestation in the 2000s took place in the Amazon region, in Brazil. This paper examines the effectiveness of a locally-led policy—the Green Municipalities Programme—in curbing illegal deforestation in the Pará state, part of the legal Amazon. We combine a regression discontinuity (RD) design and a 10-year high-resolution spatial dataset (1, 781, 122 pixels covering 162, 242 km2) to evaluate the programme’s impact. Evidence suggests that municipalities reduced deforestation only 4 years after joining the programme at about 0.01 km2 within the optional bandwidth (10 km). The effect comes mainly from municipalities traditionally with lower deforestation rates. This effect represents avoidance of 0.02 MtCO2/year released to the atmosphere, or USD 1.7 million per year of avoided damage. Since Brazil has committed through its NDC to eliminate deforestation in the Amazon by 2030, decentralized programmes focusing on indirect benefits appear to be effective only in the long run, serving as a “bonus” to support regions with relatively higher levels of forest cover. Regression discontinuity design, Policy evaluation, Deforestation, High-resolution spatial panel 1 2022 82 5 3 Environmental and Resource Economics 65 100 http://link.springer.com/10.1007/s10640-022-00659-0 text/html Abstract Maria Alice Moz-Christofoletti malice.moz@gmail.com University of Sao Paulo Paula Carvalho Pereda University of Sao Paulo Wesley Campanharo National Institute for Space Research
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article An Integrated Strategy to Reduce Monitoring and Enforcement Costs A policy of effective environmental protection, inthe present political atmosphere, will requirelow-cost monitoring and enforcement (M&E) strategiesthat do not rely on draconian penalties. Infinite oreven very high penalties for environmental violationsare socially and politically unacceptable.Environmental violations are often classed as civiloffenses, and the occurrence of a violation may bethought insufficient to establish intent. If penaltiesare upper-bounded and each firm is inspected randomly, compliance cannot be maintained with arbitrarily smallinspection probabilities and, hence, small agencycosts. In this paper we examine possibilities forreducing agency M&E costs, including the requirementfor self-reports of effluents and the adjustment ofthe inspection probability to reflect a firm'scompliance or reporting reputation. Copyright Kluwer Academic Publishers 2000 enforcement, reputation, self-reports, 1 2000 15 1 Environmental and Resource Economics 57 74 http://hdl.handle.net/10.1023/A:1008348915460 text/html Access to full text is restricted to subscribers. E. Hentschel A. Randall
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article Evaluation of Nature Conservation Recent literature shows a lively debate on how tocapture ecological and environmental aspects indifferent evaluation methods and the closely relatedissue of the (im)possibilities of monetization ofthese aspects. Although economists in general tend tofavour Cost-Benefit Analysis (CBA) aboveMulti-Criteria Analysis (MCA), part of the literaturesuggests that CBA falls short of being the onlydecision-making device for environmental problems, both for theoretical and practical reasons. This paperdiscusses both evaluation methods and the main resultsof a major, publicly-financed nature conservationproject in The Netherlands. The evaluation method combines the straightforwardnessof CBA with the flexibility of MCA. Conceptually, itconsists of a MCA, the net result of a CBA beingintegrated as one of the criteria. The differentaspects of the nature conservation project that can bemonetized are incorporated into the CBA. Otheraspects such as changes in biodiversity or scenicbeauty are analysed in their own dimension, provided (cardinal) quantification is possible. Infact, the analysis consists of a very simple MCA, withtwo criteria: social costs and a quantitative measureof nature. Quantifying the amount of nature in its own, non-monetary dimension is a key element of theempirical analysis. A detailed quantitative estimateis made of the improvement of nature, based upon 564species and 131 different ecosystems. The result ofthe evaluation is a trade-off at the national levelbetween ecological improvements (plus 18 percent) andsocial costs (DFl. 3.4 billion net present value). Dueto the detailed quantification of the effect on naturethe evaluation also yields results about thecost-effectiveness of four different instruments tocreate and to preserve nature. That part of theanalysis shows that complete withdrawal ofagricultural land for nature purposes in the projectin general is more cost-effective than subsidizingnature-friendly farming, although the former is moreexpensive. Copyright Kluwer Academic Publishers 2000 nature conservation, project evaluation, The Netherlands, 4 2000 16 8 Environmental and Resource Economics 363 378 http://hdl.handle.net/10.1023/A:1008344604392 text/html Access to full text is restricted to subscribers. D. Strijker F. Sijtsma D. Wiersma
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article Global Ex-vessel Fish Price Database Revisited: A New Approach for Estimating ‘Missing’ Prices The Global Ex-vessel Fish Price Database (Ex-vessel DB) reported in Sumaila et al. (J Bioecon 9(1):39–51, 2007 ) was the first comprehensive database that presents average annual ex-vessel prices for all commercially exploited marine fish stocks by nationality of the fishing fleet. It contained over 30, 000 reported price items, covering the period from 1950 to the present, and supplemented missing prices with estimates based on prices from a different year, species group or fleet nationality. This paper describes a revised missing price estimation approach, focused on the computation of annual average international prices for each species group, adjusted to domestic prices using the real exchange rate based on national purchasing power parity. Key advantages of the new approach are that it allows a larger number of reported prices to be used in the price estimation, and accounts for relative price level differences that exist between countries. Our new approach should improve the estimates in regions where reported prices are scarce or non-existent by linking domestic prices to the trends in international prices. Our analysis, based on the revised ex-vessel price estimates (in real 2005 USD), shows that the global marine fisheries landings have generated total value of USD 4.2 trillion since 1950, including USD 100 billion in 2005. Copyright Springer Science+Business Media Dordrecht 2013 Ex-vessel price, Landed value, Global marine fisheries, 4 2013 56 12 Environmental and Resource Economics 467 480 http://hdl.handle.net/10.1007/s10640-012-9611-1 text/html Access to full text is restricted to subscribers. Wilf Swartz w.swartz@fisheries.ubc.ca Rashid Sumaila r.sumaila@fisheries.ubc.ca Reg Watson r.watson@fisheries.ubc.ca
oai:RePEc:kap:enreec:v:27:y:2004:i:2:p:201-2262022-12-21RePEc:kap:enreec
article Environmental and Social Accounting for Brazil An environmentally extendedSocial Accounting Matrix (SAM) has beenconstructed for Brazil for the first time. Wereview in detail previous studies in thisfield, describe the construction, structure anddata sources of the Brazilian SAM, anddemonstrate the effect of system closure.Examining a range of type-I and type-IImultipliers, we show that incomes generated byfinal consumption are highly skewed towardsrich households, but energy requirements andcarbon emissions are higher for the consumptionof the poor. A significant negative correlationexists between employment and income on onehand, and energy requirements and carbonemissions on the other, while a significantpositive correlation exists between imports, and energy and carbon. These correlationsdemonstrate that there is scope for policiesthat pursue imports substitution and reduceenergy consumption and carbon emissions whilstincreasing employment and income. Copyright Kluwer Academic Publishers 2004 Brazil, carbon emissions, energy use, multipliers, Social Accounting Matrix, 2 2004 27 2 Environmental and Resource Economics 201 226 http://hdl.handle.net/10.1023/B:EARE.0000017281.24020.49 text/html Access to full text is restricted to subscribers. Manfred Lenzen m.lenzen@physics.usyd.edu.au Roberto Schaeffer roberto@ppe.ufrj.br
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article Markets for Tradeable Emission and Ambient Permits: A Dynamic Approach This paper discusses trade mechanisms in pollutionpermit markets. Proofs are given, that sequential, bilateral trade in tradeable emissions permitsconverges to a market equilibrium with minimal totalcosts of pollution control. If ambient or depositionpermits are traded, the convergence of bilateraltransactions occurs only in the case of a singlereceptor. For multiple receptors, the proof ofconvergence for tradeable emissions and ambientpermits is given for two trade mechanisms: sequential, multilateral trade and a Walrasian auction. Copyright Kluwer Academic Publishers 2000 bilateral and multilateral trade, sequential, tradeable emission and ambient permits, Walrasian auction, 1 2000 15 1 Environmental and Resource Economics 39 56 http://hdl.handle.net/10.1023/A:1008369611378 text/html Access to full text is restricted to subscribers. Y. Ermoliev M. Michalevich A. Nentjes
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article Addressing Heterogeneous Preferences Using Parametric Extended Spike Models Some public programs simultaneously provide a mix of non-rejectable public goods and public bads. Consequently, some individuals would pay for the program, while others might instead need to becompensated. In this paper we estimate twoparametric extended spike models that accountfor positive and negative preferences as wellas indifference for the public good. Weillustrate the models using data on valuationof prescribed burning of underbrush in forests, which reduces the risk of catastrophicwildfires but also produces smoke emissions(the public bad). We compare the two empiricalapproaches to estimate willingness to pay (WTP)for the program and contrast these results withthose obtained from modeling specificationsthat only account for non-negative preferences.Substantial differences in public net benefitswere found between the most flexible parametricextended spike model and the simple spike modelwhere negative responses were coded as zero anda standard binary logit of only positivebidders. The results from the extended spikemodels demonstrated that accounting forindifference and negative values towards thepublic good resulted in substantially lowerwillingness to pay estimates. Copyright Kluwer Academic Publishers 2004 contingent valuation, extended spike model, non-rejectable public goods, willingness to accept, willingness to pay, 3 2004 27 3 Environmental and Resource Economics 297 311 http://hdl.handle.net/10.1023/B:EARE.0000017655.38664.ce text/html Access to full text is restricted to subscribers. Laura Nahuelhual-Muñoz lauranahuel@yahoo.com Maria Loureiro marial@lamar.colostate.edu John Loomis jloomis@lamar.colostate.edu
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article Alternative Environmental Regulation Schemes for the Belgian Power Generation Sector This paper discusses the effects of alternative waysof using external cost estimates to regulateinvestments and generation in the electricityproduction sector. Starting from the existing system, four alternatives are considered: emission taxes forthe utility and for independent producers, emissiontaxes limited to the electric utility, emissionpermits limited to the electric utility and finally asystem where only investments are regulated, anddispatch is not. Taking external damage estimates fromthe literature, these alternatives are compared usinga dynamic partial equilibrium model of the Belgianelectricity market for the period 1995–2034. Theefficiency and distribution effects of the alternativeenvironmental policy instruments are quantified. Copyright Kluwer Academic Publishers 2000 electric utilities, environmental policy, power generation, 2 2000 16 6 Environmental and Resource Economics 121 160 http://hdl.handle.net/10.1023/A:1008340402750 text/html Access to full text is restricted to subscribers. A. Bigano S. Proost J. Van Rompuy
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article Evolutionary Theories in Environmental and Resource Economics: Approaches and Applications Recent advances in evolutionary theory have important implications for environmental economics. A short overview is offered of evolutionarythinking in economics. Subsequently, major concepts and approaches inevolutionary biology and evolutionary economics are presented andcompared. Attention is devoted, among others, to Darwinian selection, punctuated equilibrium, sorting mechanisms, Lamarckian evolution, coevolution and self-organization. Basic features of evolution, such assustained change, irreversible change, unpredictability, qualitativechange and disequilibrium, are examined. It is argued that there are anumber of fundamental differences as well as similarities betweenbiological and economic evolution. Next, some general implications ofevolutionary thinking for environmental economics are outlined. This isfollowed by a more detailed examination of potential uses ofevolutionary theories in specific areas of environmental economics, including sustainability and long run development theories, technologyand environment, ecosystem management and resilience, spatial evolutionand environmental processes, and design of environmental policy. Copyright Kluwer Academic Publishers 2000 bounded rationality, coevolution, disequilibrium, ecosystems, irreversibility, macroevolution, punctuated equilibrium, sorting, sustainable development, technical change, 1 2000 17 9 Environmental and Resource Economics 37 57 http://hdl.handle.net/10.1023/A:1008317920901 text/html Access to full text is restricted to subscribers. Jeroen van den Bergh jbergh@econ.vu.nl John Gowdy
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article Resource Accounting in Measures of Unsustainability: Challenging the World Bank's Conclusions The World Bank has recently published acomprehensive study of environmental and resourceaccounting, covering 103 countries (World Bank1997a). The study concludes that many Sub-Saharan, Northern African and Middle East countries have hadnegative `genuine' saving rates over the last 20years and therefore fail to pass the test of weaksustainability. This paper argues that the Bank'sconclusions depend on a method for computing usercosts from resource exploitation that is challengedby two competing ones (the `El Serafy'-method andthe method of Repetto et al.) and is inferior to oneof its rivals. Resource rents are re-computed usingthe `El Serafy'-method for 14 countries and theSub-Saharan and Northern African and Middle Eastregions. The results are that both regions andalmost all countries either stop exhibiting signs ofunsustainability or their unsustainability can beexplained without having recourse to resourceaccounting. However, for Congo, Ecuador, Gabon, Nigeria, Mauritania and Trinidad and Tobago there isa lesson: These countries did not adequately use theopportunities they were given through their naturalresource endowments and should learn from theirmistake for the future depletion of their remainingreserves of natural resources. Copyright Kluwer Academic Publishers 2000 accounting, `El Serafy'-method, genuine savings, natural resources, pollution, sustainability, World Bank, 3 2000 15 3 Environmental and Resource Economics 257 278 http://hdl.handle.net/10.1023/A:1008304812545 text/html Access to full text is restricted to subscribers. Eric Neumayer e.neumayer@lse.ac.uk
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article The Relationship between the Environmental and Financial Performance of Public Utilities A growing body of research has centered on theissue of the relationship between financial andenvironmental performance. The lack ofconsensus in this literature can be attributedto several factors. The cost of complying withenvironmental regulation can be significant anddetrimental to shareholder wealth maximization.Conversely, a firm that can effectively controlpollution might also be able to effectivelycontrol other costs of production and henceearn a higher rate of return. We utilize datafrom the Investor Responsibility ResearchCenter as well as a proprietary database toinvestigate the relationship betweenenvironmental performance and financialperformance in electric utilities. Utilities, as producers and distributors of energy, produce substantial amounts of pollution.However, since public utilities are regulated, studying the financial and environmentalperformance of utilities affords us theopportunity to see what role regulation playsin enhancing or diminishing the relationshipbetween financial and environmentalperformance.Our results differ from earlier studies in thatwe find do not find a positive relationshipbetween holding period returns and anindustry-adjusted measure of environmentalperformance nor do we find that regulatoryclimate appears to explain returns. While theredoes not appear to be a clearly definedrelationship between regulatory climate and acompliance based measure of environmentalperformance, there is evidence of a negativerelationship between financial return and amore pro-active measure of environmentalperformance. We offer several possibleinterpretations of these results and extensionsfor future research. Copyright Kluwer Academic Publishers 2004 environment, performance, public utilities, regulation, 2 2004 29 10 Environmental and Resource Economics 137 157 http://hdl.handle.net/10.1023/B:EARE.0000044602.86367.ff text/html Access to full text is restricted to subscribers. Greg Filbeck Raymond Gorman gormanrf@muohio.edu
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article Bioeconomic Modelling of Coastal Cod and Kelp Forest Interactions: Co-benefits of Habitat Services, Fisheries and Carbon Sinks Abstract Ecosystem-based fisheries management seeks to expand upon the traditional one-stock fisheries management measures by internalizing the effects of fishing on marine ecosystems, and accounting for biological interactions among marine resources. The fact that marine resources provide multiple, often competing benefits, makes the accomplishment of these ecosystem-based fisheries management objectives highly complex. In this paper, we develop a dynamic bioeconomic model to analyze the ecological and economic interactions between fisheries and renewable habitat where the habitat provides multiple ecosystem services. Specifically, a single resource manager seeks to maximize co-benefits of fishery-habitat interactions when the habitat is an exploitable marine resource, but also a dwelling place for commercial fish, enhancing the growth of the fish stock and providing regulating ecosystem services in the form of carbon sink for climate change mitigation. The optimal management rules for both fishery and habitat are derived and discussed. We also present an application of the model to analyze an integrated management of coastal cod and kelp forests in Norway, where regulations on commercial harvesting of kelp forests seek to protect fisheries. Both the theoretical model and the Norwegian application suggest substantial potential increases for both coastal cod and kelp forest stocks, with an attendant 8% increase in cod harvests, and about 1% reduction in kelp harvests. In addition, an optimal management regime that internalizes carbon sink co-benefits of kelp forests stores additional 300, 000 tonnes of carbon. Habitat, Fisheries, Carbon sink, Optimal management, Multiple benefit stream 1 2020 75 1 2 Environmental and Resource Economics 25 48 Q22 Q57 Q58 http://link.springer.com/10.1007/s10640-019-00387-y text/html Abstract Godwin K. Vondolia Kofi.Vondolia@niva.no UiT The Arctic University of Norway Norwegian Institute for Water Research Wenting Chen Norwegian Institute for Water Research Claire W. Armstrong UiT The Arctic University of Norway Magnus D. Norling Norwegian Institute for Water Research
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article The Design of ``Smart'' Water Market Institutions Using Laboratory Experiments One of the problems with proposals for substantialinstitutional change in water systems is thatmodification and irreversibility make the processslow, cautious and costly to society. In this paper, we discuss the role that experimental economics canplay in evaluating proposed institutional changes tohelp facilitate a more rapid and smooth adoption ofchanges in the water system. Experimental economicsyields a formal and replicable system for analyzingalternative market structures before they are actuallyimplemented. For example, a water market can bedeveloped and tested in the laboratory under supplyand demand constraints that reflect drought conditionsthat might occur in California, or other arid regionsin the world. We present a prototype of a Californiawater transfer model and the results from a series ofwater market experiments. Results include realizedmarket efficiency and surplus distribution, as well asan analysis of market price volatility. Theimplications of this research extend well beyondCalifornia water markets, not only to water markets inother arid regions, but also to the design of marketsfor other environmental goods, including tradablepollution permits and fishery ITQs. Copyright Kluwer Academic Publishers 2000 auctions, laboratory experiments, mechanism design, water markets, 4 2000 17 12 Environmental and Resource Economics 375 394 http://hdl.handle.net/10.1023/A:1026598014870 text/html Access to full text is restricted to subscribers. James Murphy murphy@resecon.umass.edu Ariel Dinar Richard Howitt Steven Rassenti Vernon Smith
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article Quantifying the Ancillary Benefits of the Representative Concentration Pathways on Air Quality in Europe This paper presents economic benefit estimates of air quality improvements in Europe that occur as a side effect of GHG emission reductions. We consider two climate policy scenarios from two representative concentration pathways (RCPs), in which radiative forcing levels are reached in 2100. The policy tool is a global uniform tax on all GHG emissions in the integrated assessment model WITCH. The resulting consumption patterns of fossil fuels are used to estimate the physical impacts and the economic benefits of pollution reductions on human health and on key assets by implementing the most advanced version of the ExternE methodology with its impact pathway analysis. The mitigation scenario compatible with $$+2\, ^{\circ }\hbox {C}$$ + 2 ∘ C (RCP 2.6) reduces total pollution costs in Europe by 84 %. Discounted cumulative ancillary benefits are equal to about €1.7 trillion between 2015 and 2100, or €17 per abated tonne of $$\hbox {CO}_{2}$$ CO 2 in Europe. The less strict climate policy scenario (RCP 4.5) generates benefits equal to €15.5 per abated tonne of $$\hbox {CO}_{2}$$ CO 2 . Without discounting, the ancillary benefits are equal to €46 (RCP 2.6) and €51 (RCP 4.5) per tonne of $$\hbox {CO}_{2}$$ CO 2 abated. For both scenarios, the local benefits per tonne of $$\hbox {CO}_{2}$$ CO 2 decline over time and vary significantly across countries. Copyright Springer Science+Business Media Dordrecht 2015 Ancillary benefits, Climate change mitigation, External costs, ExternE, Impact pathway analysis, Integrated assessment models, Q47, Q51, Q53, Q54, 2 2015 62 10 Environmental and Resource Economics 383 415 http://hdl.handle.net/10.1007/s10640-015-9969-y text/html Access to full text is restricted to subscribers. Milan Ščasný milan.scasny@czp.cuni.cz Emanuele Massetti Jan Melichar Samuel Carrara
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article Estimating Tropical Cyclone Damages Under Climate Change in the Southern Hemisphere Using Reported Damages This paper estimates the damages from tropical cyclones (TCs) in the Southern Hemisphere under future climate change scenarios based on the historical TC records in Australia. From the best-track TC data, we examine the changes in frequency, intensity, and economic damage of the TCs that made landfall since 1970. From the detailed individual TC reports, damage estimates are constructed based on reported damages. We find that the TC frequency has significantly declined over time. The intensity, however, does not show a significant trend. Average damage per TC has declined significantly from 43 million AUD in the 1970s to 11 million in the 1990s. This paper finds that 1 % decrease in minimum central pressure leads to 32.7 % increase in economic damage, which is more than three times larger than that found in the US hurricane study with regards to maximum wind speeds. For future damage projections, characteristics of the 14, 000 TCs generated under seven different AOGCM climate models are applied. All seven climate models predict a decrease in TC frequency in the Southern Hemisphere but intensity predictions vary. By the end of the twenty second century, changes in climate are expected to increase the TC damage under the MRI ( $$+$$ + 94 %), the MIROC ( $$+$$ + 73 %), and the CSIRO ( $$+$$ + 66 %) model due to increased intensity. However, TC damage is expected to fall under the GFDL ( $$-$$ - 92 %) and the CNRM ( $$-$$ - 85 %) model due to decreased intensity and frequency. Adaptation will be a key determinant of the future vulnerability to TCs in the Southern Hemisphere. Copyright Springer Science+Business Media Dordrecht 2014 Adaptations, Climate change, Extreme events, Southern Hemisphere, Tropical cyclones, 3 2014 58 7 Environmental and Resource Economics 473 490 http://hdl.handle.net/10.1007/s10640-013-9744-x text/html Access to full text is restricted to subscribers. S. Seo niggol.seo@sydney.edu.au
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article Evaluating Projects and Assessing Sustainable Development in Imperfect Economies We are interested in three related questions:(1) How should accounting prices be estimated?(2) How should we evaluate policy change in animperfect economy? (3) How can we check whetherintergenerational well-being will be sustainedalong a projected economic programme? We do notpresume that the economy is convex, nor do weassume that the government optimizes on behalfof its citizens. We show that the same set ofaccounting prices should be used both forpolicy evaluation and for assessing whether ornot intergenerational welfare along a giveneconomic path will be sustained. We also showthat a comprehensive measure of wealth, computed in terms of the accounting prices, canbe used as an index for problems (2) and (3)above. The remainder of the paper is concernedwith rules for estimating the accounting pricesof several specific environmental naturalresources, transacted in a few well knowneconomic institutions. Copyright Kluwer Academic Publishers 2003 accounting prices, bifurcation points, cost-benefit analysis, environmental Kuznets curve, genuine investment, genuine wealth, hysteresis, intertemporal welfare, irreversibility, non-convexity, Pontryagin Principle, population growth, property rights, separatrix, social discount rate, structural stability, sustainable development, technological change, thresholds, 4 2003 26 12 Environmental and Resource Economics 647 685 http://hdl.handle.net/10.1023/B:EARE.0000007353.78828.98 text/html Access to full text is restricted to subscribers. Kenneth Arrow Partha Dasgupta Karl-Göran Mäler
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article Incentives, regulations, and sustainable land use in Costa Rica Deforestation in Costa Rica has proceeded at a rapid pace. Of the remaining 2, 700 km 2 of virgin forests on privately-owned land, over 300 km 2 are being deforested each year. Pressure on National Parks, which cover about 27 percent of Costa Rica is likely to increase in the future. Preliminary information indicates that, contrary to our expectations, most of the deforestation at present is not being done by squatters, but driven by profit and asset maximization motives of the timber industry, banana companies, and large cattle ranchers. Setting aside 27 percent of the country's land as parks and reserves was a major policy decision. Aside from the removal of some “perverse” incentives operating inside park areas, the main issue there is one of sound management, including protection from intruders, strengthening enforcement, and controlled “tourism”. On the remaining primary and secondary forest areas on privately-owned land outside the parks, a key question is whether public interests connected with external costs of deforestation warrant public intervention. The paper suggests that a differentiated approach to this and other questions is needed, depending on the costs and benefits involved, and it discusses incentives and regulations which influence land use, and makes proposals for reforms. Copyright Kluwer Academic Publishers 1991 Incentives, regulations, deforestation, sustainable land use, 2 1991 1 6 Environmental & Resource Economics 179 194 http://hdl.handle.net/10.1007/BF00310017 text/html Access to full text is restricted to subscribers. Ernst Lutz
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article Financing Energy Innovation: Internal Finance and the Direction of Technical Change Abstract Achieving the goals of the Paris Agreement and of climate neutrality by 2050 in the European Union will require mobilizing financial investments towards clean energy innovation. This study examines the role of internal finance (cash flows and cash holdings) and financing constraints for innovation in energy technologies. We construct a dataset for 1, 300 European firms combining balance-sheet information and patenting activities in renewable (REN) and fossil-fuel (FF) technologies and estimate the sensitivity of patenting activities to firms’ internal finance. We use count estimation techniques and control for a large set of firm-specific characteristics and market developments in REN and FF technologies. We find that patenting activities of firms specialized in REN innovation are significantly more sensitive to a shock in cash flows than firms specializing in FF innovation. Hence, our results emphasize that innovative firms in clean energy may be particularly vulnerable to financing constraints. We discuss the implications of these results for energy transition policies aiming to redirect finance towards clean energy R&D. R&D, Patents, Financing constraints, Renewable energy O3A, Q4, G3 1 2022 83 9 7 Environmental and Resource Economics 145 169 http://link.springer.com/10.1007/s10640-021-00602-9 text/html Abstract Joëlle Noailly joelle.noailly@graduateinstitute.ch Center for International Environmental Studies and Department of International Economics, Graduate Institute of International and Development Studies VU Amsterdam Tinbergen Institute Roger Smeets rsmeets@business.rutgers.edu Rutgers University
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article Convex Relationships in Ecosystems Containing Mixtures of Trees and Grass The relationship between grass production andthe quantity of trees in mixed tree-grassecosystems (savannas) is convex for all or mostof its range. In other words, the grassproduction declines more steeply per unitincrease in tree quantity at low tree coverthan at high tree cover. Since much of theeconomic value in savannas is ultimatelyderived from grass, and the main mechanismcontrolling the tree-grass balance is dependenton the production of grassy fuel for fires, this non-linearity has the effect of creatingtwo savanna configurations. One has a low treedensity and supports a viable grazingenterprise, while the other has dense treecover and a frequently non-viable grazingenterprise. The non-linearity is suggested hereto have two main sources: the geometry of thespatial interaction between tree root systemand grasses, and the effect of differingphenology (the time course of leaf areaexposure) on the acquisition of water andnutrients. The existence of the non-linearityreduces the resilience of thegenerally-preferred “open” configuration, andincreases the resilience of the less-desirable“closed” configuration. Copyright Kluwer Academic Publishers 2003 competition, primary productivity, resilience, savannas, 4 2003 26 12 Environmental and Resource Economics 559 574 http://hdl.handle.net/10.1023/B:EARE.0000007349.67564.b3 text/html Access to full text is restricted to subscribers. R.J. Scholes
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article Exploiting the Medium Term Biomass Energy Potentials in Austria: A Comparison of Costs and Macroeconomic Impact The transition to an implicitly solar-basedenergy system can make use of various specificbiomass energy systems. This paper provideseconomic and environmental indicators forevaluating alternative options.The paper proceeds in three empirical steps.First, an expert survey supplies the primarybiomass potentials available for non-food usein Austria and their respective costs. Second, an inquiry into investment, operating andfinancing costs of 30 different biomass energyuse systems allows a standardized comparisonamong them and their relationship to fossilreference technologies. Third, a computablegeneral equilibrium model of the Austrianeconomy is employed to quantify the impacts offostering the use of distinct biomass energytechnologies.The results allow us to distinguish betweenthose technologies that tend to lead to anincrease in both GDP and employment (e.g., combined heat and power production from sewagesludge biogas), to an increase only inemployment, while GDP tends to diminish (e.g., district heating based on agricultural pellets)or to a decline in both (e.g., co-firing basedon wood-chips, bark or industrial pellets).Individual technologies could account for up toone third of Austrias Kyoto obligation, whilecombinations of technologies, triggered by acombined CO 2 tax and biomass energysubsidy for example, could almost fully lead toAustrian Kyoto-compliance. Copyright Kluwer Academic Publishers 2003 biomass energy, biomass energy and employment, CO 2 -policy, Kyoto-policy, renewable energy, sustainable energy, 4 2003 24 4 Environmental and Resource Economics 359 377 http://hdl.handle.net/10.1023/A:1023680125027 text/html Access to full text is restricted to subscribers. Karl Steininger karl.steininger@kfunigraz.ac.at Herbert Voraberger
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article A Renewable Resource-based Ramsey Model with Costly Resource Extraction This paper derives the analytical solution of arenewable resource-based Ramsey economy withcostly resource extraction. The goal is toascertain whether costly resource extractioncan induce nonlinear dynamical properties in the system. We find that the solution for a model with constant technology can exhibit multiple steady states, and the comparative statics effects for consumption, utility, and the stock of nature capital areambiguous in a number of different cases. Moreover, thesolution for a model with exogenous technological progress exhibits unusual comparative dynamics andthe possibility of multiple balanced growthpaths. An increase in the rate of technologicalprogress induces a long-run growth rate in per capitaconsumption that depends on parameters of the productionfunction. Overall, technological progress inthe model can be less beneficial than in the standardeconomic growth model in which resourceextraction is costless. Copyright Kluwer Academic Publishers 2004 environment, growth, multiple steady states, non linear dynamics, 2 2004 27 2 Environmental and Resource Economics 165 185 http://hdl.handle.net/10.1023/B:EARE.0000017277.60215.03 text/html Access to full text is restricted to subscribers. Kerry Krutilla krutilla@indiana.edu Rafael Reuveny rreuveny@indiana.edu
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article Improving the Performance of Contingent Valuation Studies in Developing Countries This paper discusses three main reasons why so many of the contingentvaluation studies conducted in developing countries are so bad. First, the contingent valuation surveys themselves are often poorly administeredand executed. Second, contingent valuation scenarios are often very poorlycrafted. Third, few CV studies conducted in developing countries aredesigned to test whether some of the key assumptions that the researchermade were the right ones, and whether the results are robust with respectto simple variations in research design and survey method. The paper concludesthat research on stated preference methods in developing countries iscritically important to the successful implementation of these methodsbecause (1) there is no empirical evidence to suggest that rapid, ”streamlined” CV surveys yield reliable, accurate results, and (2)there is a significant risk that the current push for cheaper, simplerCV studies could discredit the methodology itself. Moreover, the policydebates to which CV researchers are asked to contribute are often oftremendous importance to the well-being of households in developingcountries. Because the costs of policy mistakes can prove tragic, itis critical that VC researchers push for excellence in this researchenterprise and that funding agencies think more carefully about thevalue of policy-relevant information in the fields in which thecontingent valuation method is being used to study household preferencesand behavior (e.g., water and sanitation services, urban air pollution, soil erosion, deforestation, biodiversity, watershed management, ecosystem valuation, vaccines for the poor). Copyright Kluwer Academic Publishers 2002 contingent valuation method, demand assessment, developing countries, household surveys, stated preferences, 1 2002 22 6 Environmental and Resource Economics 323 367 http://hdl.handle.net/10.1023/A:1015575517927 text/html Access to full text is restricted to subscribers. Dale Whittington dale_whittington@unc.edu
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article Ecological Structure and Functions of Biodiversity as Elements of Its Total Economic Value Rational economic decisions regarding theconservation of biodiversity require the considerationof all the benefits generated by this naturalresource. Recently a number of categories of values(inherent value, contributory value, indirect value, infrastructure value, primary value) have beendeveloped, especially in the literature of EcologicalEconomics, which, besides the individual andproductive benefits of biodiversity, also include theutilitarian relevance of the ecological structure andfunctions of biodiversity in the, so-called, totaleconomic value. For the question of including theecological structure and functions of biodiversity inthe total economic value it is of crucial importanceto note, that these categories of values are not onlyterminologically different, but also relate todifferent ecological levels of biodiversity and – mostimportantly – to specific complementary relationships– between species, between elements of ecologicalstructures and between ecological functions and theircontribution to human well-being. This paper analysesthese complementary relationships, discusses theirimplications for the total economic value ofbiodiversity and draws conclusions for decision makingin environmental policy. Copyright Kluwer Academic Publishers 2000 biodiversity, cost-benefit-analysis, ecological structure, ecological functions, total economic value, nonsubstitutability, ignorance, safe minimum standard, 3 2000 16 7 Environmental and Resource Economics 303 328 http://hdl.handle.net/10.1023/A:1008359022814 text/html Access to full text is restricted to subscribers. Oliver Fromm
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article Cross-Country Comparisons of Covid-19: Policy, Politics and the Price of Life Abstract Coronavirus has claimed the lives of over half a million people world-wide and this death toll continues to rise rapidly each day. In the absence of a vaccine, non-clinical preventative measures have been implemented as the principal means of limiting deaths. However, these measures have caused unprecedented disruption to daily lives and economic activity. Given this developing crisis, the potential for a second wave of infections and the near certainty of future pandemics, lessons need to be rapidly gleaned from the available data. We address the challenges of cross-country comparisons by allowing for differences in reporting and variation in underlying socio-economic conditions between countries. Our analyses show that, to date, differences in policy interventions have out-weighed socio-economic variation in explaining the range of death rates observed in the data. Our epidemiological models show that across 8 countries a further week long delay in imposing lockdown would likely have cost more than half a million lives. Furthermore, those countries which acted more promptly saved substantially more lives than those that delayed. Linking decisions over the timing of lockdown and consequent deaths to economic data, we reveal the costs that national governments were implicitly prepared to pay to protect their citizens as reflected in the economic activity foregone to save lives. These ‘price of life’ estimates vary enormously between countries, ranging from as low as around $100, 000 (e.g. the UK, US and Italy) to in excess of $1million (e.g. Denmark, Germany, New Zealand and Korea). The lowest estimates are further reduced once we correct for under-reporting of Covid-19 deaths. Coronavirus, Covid-19, Modeling, Valuation, Price of life 4 2020 76 8 3 Environmental and Resource Economics 525 551 http://link.springer.com/10.1007/s10640-020-00466-5 text/html Abstract Ben Balmford b.balmford@exeter.ac.uk University of Exeter Business School James D. Annan jdannan@blueskiesresearch.org.uk Blue Skies Research, Ltd Julia C. Hargreaves jules@blueskiesresearch.org.uk Blue Skies Research, Ltd Marina Altoè M.Altoe@exeter.ac.uk Innovation, Impact and Business, University of Exeter Ian J. Bateman i.bateman@exeter.ac.uk University of Exeter Business School
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article On the Efficiency of Competitive Markets for Emission Permits It is typical for economists andpolicy makers alike to presume that competitivemarkets allocate emission permits efficiently.This paper demonstrates that competition in theemission permits market cannot assureefficiency when the product market isoligopolistic. We provide the conditions underwhich a bureaucratic mechanism is welfaresuperior to a tradeable emission permitssystem. Price-taking behaviour in the permitsmarket ensures transfer of licenses to the lessefficient in abatement firms, which then becomemore aggressive in the product market, acquiring additional permits. As a result, theless efficient firms end up with a higher thanthe welfare maximizing share of emissionpermits. If the less efficient in abatementfirms are also less efficient in production, competitive trading of permits may result inlower output and welfare. Copyright Kluwer Academic Publishers 2004 competitive trading of emission permits, economic efficiency, oligopolistic product market, 1 2004 27 1 Environmental and Resource Economics 1 19 http://hdl.handle.net/10.1023/B:EARE.0000016786.09344.d4 text/html Access to full text is restricted to subscribers. Eftichios Sartzetakis esartz@uom.gr
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article Addressing Negative Willingness to Pay in Dichotomous Choice Contingent Valuation This paper has four purposes. First, we outline the controversy surroundingthe issue of negative willingness to pay (WTP)in contingent valuation (CV) studies. Second, we use Monte Carlo simulation to examine theperformance of alternative distributionalassumptions in estimating WTP in the presenceof varying proportions of the populationholding negative WTP values. We focus ondichotomous choice CV (DC-CV), where negativeWTP values may be especially difficult todetect. Third, we extend the simulation toinvestigate the performance of the mixturemodels that have recently been proposed forhandling/identifying non-positive WTP values. Fourth, we extend the simulation to investigatethe performance of the nonparametric lowerbound Turnbull approach. Results indicate thatthe relative performance of the DC-CV modelingalternatives evaluated here, which assumepositive WTP, varies across the simulationsetting (e.g., proportion of negative WTP); butnone can be said to reasonably ``solve'' theproblem ex post. This underscores theimportance of ex ante efforts to identify ifnegative WTP is likely to be prominent in agiven valuation setting. In such cases, appropriately handling negative WTP must beaddressed through ex ante survey design andmodeling choices that allow negative WTP. Copyright Kluwer Academic Publishers 2001 contingent valuation, Monte Carlo simulation, negative willingness to pay, 3 2001 20 11 Environmental and Resource Economics 173 195 http://hdl.handle.net/10.1023/A:1012642902910 text/html Access to full text is restricted to subscribers. Alok Bohara Joe Kerkvliet Robert Berrens
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article Average Derivative Estimation of Hedonic Price Models Conventional parametric techniques for estimatinghedonic price models require a correct functionalform. In this paper, we side-step this parametricshortcoming by estimating a hedonic price model usingaverage derivative estimation (ADE). Thissemiparametric approach produces robust estimates ofthe marginal effects without assuming a specificfunctional form a priori. In our application ofthe model to a unique data set on Korean home prices, ADE produced estimates consistent with priorexpectations, providing initial evidence that themodel may represent a viable alternative when usingthe hedonic approach. Copyright Kluwer Academic Publishers 2000 average derivative estimation, hedonic price models, semiparametric estimation, 1 2000 16 5 Environmental and Resource Economics 81 91 http://hdl.handle.net/10.1023/A:1008322200793 text/html Access to full text is restricted to subscribers. Junsoo Lee Seung-Jun Kwak junsoo.lee@bus.ucf.edu John List
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article Environmental Policy and Technological Change The relationship between technological changeand environmental policy has receivedincreasing attention from scholars and policymakers alike over the past ten years. This ispartly because the environmental impacts ofsocial activity are significantly affected bytechnological change, and partly becauseenvironmental policy interventions themselvescreate new constraints and incentives thataffect the process of technologicaldevelopments. Our central purpose in thisarticle is to provide environmental economistswith a useful guide to research ontechnological change and the analytical toolsthat can be used to explore further theinteraction between technology and theenvironment. In Part 1 of the article, weprovide an overview of analytical frameworksfor investigating the economics oftechnological change, highlighting key issuesfor the researcher. In Part 2, we turn ourattention to theoretical analysis of theeffects of environmental policy ontechnological change, and in Part 3, we focuson issues related to the empirical analysis oftechnology innovation and diffusion. Finally, we conclude in Part 4 with some additionalsuggestions for research. Copyright Kluwer Academic Publishers 2002 diffusion, environmental policy, innovation, invention, technological change, 1 2002 22 6 Environmental and Resource Economics 41 70 http://hdl.handle.net/10.1023/A:1015519401088 text/html Access to full text is restricted to subscribers. Adam Jaffe Richard Newell Robert Stavins robert_stavins@harvard.edu
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article Estimates of the Damage Costs of Climate Change. Part 1: Benchmark Estimates A selection of the potential impacts of climate change – on agriculture, forestry, unmanaged ecosystems, sea level rise, human mortality, energyconsumption, and water resources – are estimated and valued in monetaryterms. Estimates are derived from globally comprehensive, internallyconsistent studies using GCM based scenarios. An underestimate of theuncertainty is given. New impact studies can be included following themeta-analytical methods described here. A 1 °C increase in the globalmean surface air temperature would have, on balance, a positive effect onthe OECD, China, and the Middle East, and a negative effect on othercountries. Confidence intervals of regionally aggregated impacts, however, include both positive and negative impacts for all regions. Global estimatesdepend on the aggregation rule. Using a simple sum, world impact of a1 °C warming would be a positive 2% of GDP, with a standarddeviation of 1%. Using globally averaged values, world impact would be anegative 3% (standard deviation: 1%). Using equity weighting, worldimpact would amount to 0% (standard deviation: 1%). Copyright Kluwer Academic Publishers 2002 adaptation, climate change, impacts, 1 2002 21 1 Environmental and Resource Economics 47 73 http://hdl.handle.net/10.1023/A:1014500930521 text/html Access to full text is restricted to subscribers. Richard Tol
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article International Emissions Trading and Induced Carbon-Saving Technological Change: Effects of Restricting the Trade in Carbon Rights This paper examines the implications of restricting the tradability of carbon rights in the presence of induced technological change. Unlike earlier approaches aimed at exploring the tradability-technology linkage, we focus on climate-relevant “carbon-saving” technological change. This is achieved by incorporating endogenous investment in carbon productivity into the RICE-99 integrated assessment model of Nordhaus and Boyer (2000). Simulation analysis of various emission reduction scenarios with several restrictions on emissions trading reveals a pronounced dichotomy of effects across regions: Restrictions to trading raise the investments in carbon productivity in permit demanding regions while reducing them in permit supplying regions. In terms of per capita consumption, permit demanding regions lose and permit supplying regions gain from restrictions. In scenarios that involve “hot air, ” restrictions to trade lower overall emissions, which results in reduced climate damage for most regions. Reduced damage, in turn, reduces the incentive to invest in carbon productivity. Copyright Springer 2006 carbon-saving technological progress, emissions trading, flexibility mechanism, induced technological change, integrated assessment model, Q25, Q43, O31, D58, 2 2006 33 02 Environmental & Resource Economics 169 198 http://hdl.handle.net/10.1007/s10640-005-3105-3 text/html Access to full text is restricted to subscribers. Patrick Matschoss Heinz Welsch welsch@uni-oldenburg.de
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article Marginal Abatement Costs of Carbon Dioxide Emissions in China: A Parametric Analysis This paper investigates the technical inefficiency, shadow price and substitution elasticity of $$\hbox {CO}_{2}$$ CO 2 emissions of China based on a provincial panel for 2001–2010. Using linear programming to calculate a quadratic parameterized directional output distance function, we show that China’s technical inefficiency increases over the period implying further scope for $$\hbox {CO}_{2}$$ CO 2 emissions reduction in the medium and longer term at best by 4.5 and 4.9 % respectively. Our results (notwithstanding regional differences) highlight increases in the shadow price of $$\hbox {CO}_{2}$$ CO 2 abatement (1, 000 Yuan/ton in 2001 to 2, 100 Yuan/ton in 2010). Additionally, increasingly steep substitution elasticity highlights the difficult reality of reducing China’s $$\hbox {CO}_{2}$$ CO 2 emissions. Copyright Springer Science+Business Media Dordrecht 2015 $$\hbox {CO}_{2}$$ CO 2 emissions, Shadow price, Parametric estimation, China, 2 2015 61 6 Environmental and Resource Economics 191 216 http://hdl.handle.net/10.1007/s10640-014-9789-5 text/html Access to full text is restricted to subscribers. Limin Du dlmsos@hotmail.com Aoife Hanley aoife.hanley@ifw-kiel.de Chu Wei xiaochu1979@gmail.com
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article International Versus National Actions Against Nitrogen Pollution of the Baltic Sea Large nitrogen loads to the Baltic Sea play an important role for currentdamages caused by eutrophication: large sea bottom areas without anybiological life, low stocks of cods, and toxic blue green algae. In spite of therelatively large supply of biological and physical data on the sea, difficulties remain with respect to linking costs of nitrogen reductions withthe dispersion of associated benefits among countries. The purpose of thisstudy is therefore to analyse and calculate efficient nitrogen reductionsand associated net benefits under international co-ordination of nitrogenreductions and single country actions for two different specifications ofmarginal benefits: uniform and differentiated. Further, comparisons aremade with the current ministerial agreement of 50 per cent nitrogenreduction to the Baltic Sea. The empirical results show that total netbenefits under internationally co-ordinated actions are considerablyhigher than when countries act on their own. Another result is thatdifferentiated benefits give higher total net benefits than uniform, and alsoimply larger differences in net benefits among countries. However, resultsindicate that uniform marginal benefits generate net benefits for allcountries from co-ordinated actions as compared to single country actions. Copyright Kluwer Academic Publishers 2001 Baltic Sea nitrogen reductions, co-ordination, uniform and differentiated marginal benefits, 1 2001 20 9 Environmental and Resource Economics 41 59 http://hdl.handle.net/10.1023/A:1017512113454 text/html Access to full text is restricted to subscribers. Ing-Marie Gren ing-marie.gren@ekon.slu.se
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article An Econometric Analysis of Global Waste Paper Recovery and Utilization The main purpose of this paper is to provide aneconometric analysis of the most importantdeterminants of inter-country differences inwaste paper recovery and utilization rates. Byemploying pooled time series and cross-sectiondata over 49 countries worldwide and sevenyears, the paper concludes that relative wastepaper recovery and use depend largely onlong-standing economic factors such aspopulation intensity and competitiveness in theworld market for paper and board products. Wealso find evidence that supports the conjecturethat rich countries tend to recover relativelymore waste paper than is the case in low-incomecountries, reflecting the higher demand forwaste management and environmental policies inmore developed economies. As recovery andutilization rates are determined by economicand demographic characteristics the degree ofpolicy flexibility in affecting these rates maybe limited. In particular, an ambitiousutilization rate target may be very costly toenforce as it can conflict with existing tradepatterns of paper and board products as well aswith other environmental goals. Additionalpolicy targets may therefore be desirable, especially since paper recycling is motivatedprimarily by environmental concerns and seldomis a benign activity in itself. Copyright Kluwer Academic Publishers 2003 inter-country differences, recovery rate, utilization rate, waste paper, 3 2003 26 11 Environmental and Resource Economics 429 456 http://hdl.handle.net/10.1023/B:EARE.0000003595.60196.a9 text/html Access to full text is restricted to subscribers. Christer Berglund Patrik Söderholm Patrik.Soderholm@ies.luth.se
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article Health Impacts of Invasive Species Through an Altered Natural Environment: Assessing Air Pollution Sinks as a Causal Pathway Abstract Invasive alien species impact environmental quality by disrupting biodiversity, vegetation cover, and displacing native flora and fauna. This can affect human health outcomes. For example, the invasive emerald ash borer (EAB) has led to the destruction of millions of ash trees, one of the most common tree species in the US. Since trees are an important source of air pollution sinks, EAB-caused ash dieback may affect human health through changes in air quality. The quasi-random nature of EAB detections and consequent changes in various air pollution levels allow us to analyze differences in mortality rates for individuals living in counties where the beetle has been found relative to individuals in contemporaneously beetle-free counties. Results suggest that EAB are associated with lagged increases in pollutant concentrations ranging from 9.2 to 46.2%. A 2SLS fixed effects model indicates that EAB-induced air pollution is associated with increases in rates of cardiovascular mortality of 6.2/year–32.6/year per 100, 000 people and increases in respiratory mortality of 1.9/year–3.9/year per 100, 000. Impacts are greatest for children and young adults. At its peak impact, EAB-induced air pollution resulted in $4.8–$21.6 billion in annual mortality costs over 2002–2014 in the 24 US states in the study area. This study has important abatement policy implications. Air pollutant sinks, Ash trees, EAB, Invasive species, Mortality 1 2018 71 9 2 Environmental and Resource Economics 23 43 Q51 Q57 Q23 I18 http://link.springer.com/10.1007/s10640-017-0135-6 text/html Abstract Benjamin A. Jones bajones@unm.edu University of New Mexico Shana M. McDermott smcdermo@trinity.edu Trinity University
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article Responses to Changes in Domestic Water Tariff Structures: A Latent Class Analysis on Household-Level Data from Granada, Spain A problem that affects the estimation of water demand functions is the presence of unobserved individual heterogeneity, which means that a common demand function is unlikely to represent the behavior of all users. We implement Latent Class Models to estimate water demand functions for four groups of users who are classified according to their unobservable preferences. This more flexible approach makes it possible to distinguish four different response patterns to changes in the drivers of water use, including different price elasticities. These results should be of particular interest to regulators who would like to tailor water demand management policy to heterogeneous users. Our analysis exploits household-level panel data on residential water demand and consumers’ characteristics obtained by combining information from a survey of 1, 465 domestic users in the city of Granada and bimonthly price and consumption data supplied by this city’s water supplier from the period 2009–2011. Copyright Springer Science+Business Media Dordrecht 2016 Water demand, Water pricing, Latent class analysis , Household microdata, Q21, Q23, Q25, 1 2016 63 1 Environmental and Resource Economics 167 191 http://hdl.handle.net/10.1007/s10640-014-9846-0 text/html Access to full text is restricted to subscribers. María Pérez-Urdiales perezumaria@uniovi.es María García-Valiñas Roberto Martínez-Espiñeira
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article Simulating the Effect of Regulatory Systems in a Fishery, An Application to the French Driftnet Albacore Fleet With a thin economic component, most bio-economic models of fisheries failto assess the effects of the regulation systems on firms. In order to analysethe short term consequences of different management schemes, a simulationmodel is applied to the French driftnet albacore fleet: licence allocation withdriftnet regulation, individual quotas, and individual transferable quotaswithout any input control. Vessel technology is estimated by using the datacollected, and groups of vessels are distinguished according to criteria ofperformance. We present the adjustment within firms and between groupsunder different scenarios (limited entry with and without driftnetregulation, individual quotas and individual transferable quotas allocation), and we compare their results in terms of quasi-rent value and otherindicators such as hake harvests or dolphin by-catches. Copyright Kluwer Academic Publishers 2002 albacore tuna, dolphin, driftnet, fisheries, ITQ, licence, quasi-rent, quota price, quotas, regulation, simulation, 1 2002 23 9 Environmental and Resource Economics 1 28 http://hdl.handle.net/10.1023/A:1020273001099 text/html Access to full text is restricted to subscribers. Olivier Guyader oguyader@ifremer.fr
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article Hugging Trees: Claiming de Facto Property Rights by Blockading Resource Use This paper explores conflicts between two groups, “the industry” and “theenvironmentalists”, over whether an indivisible resource (e.g., an ancient tree) should be harvested or preserved. In a complete information war ofattrition the environmentalists' willingness to blockade harvest attemptsmay control resource use as effectively as if they held property rights. Optimal government intervention will override this ability for somebenefit/cost combinations but may augment it for other combinations.Introducing uncertainty about the environmentalists' benefits results inextended disputes and consequent lack of efficiency. Governmentintervention for welfare reasons generally reduces these efficiencylosses. Copyright Kluwer Academic Publishers 2004 environmental protest, war of attrition, 2 2004 27 2 Environmental and Resource Economics 135 163 http://hdl.handle.net/10.1023/B:EARE.0000017276.60009.bf text/html Access to full text is restricted to subscribers. Peter Burton peter.burton@dal.ca
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article Returns on Investments in Energy-saving Technologies Under Energy Price Uncertainty in Dutch Greenhouse Horticulture Conventional net presentvalue calculations evaluating the profitabilityof investments in energy-saving technologies inDutch horticultural outlays predict a muchhigher rate of adoption of these technologiesthan is actually observed. This paper tries toexplain this gap by applying a real optionsframework. Hurdle rates for investments in twotypes of energy-saving technology are estimatedusing simulated future revenue streams, givenuncertainty regarding energy prices and energytax policies. Hurdle rates found in this wayare on average about 1.76 times the hurdlerates that result from net present valuecalculations. Furthermore, this paper tests thepredictive value of the theory by estimating alogit model. This model relates the incidenceof having invested in an energy-savingtechnology to the difference between the returnon investment and the hurdle rate. Thepredictive power turns out to be encouraging, as the statistical tests indicate that higherhurdle rates tend to reduce rates of technologyadoption. Copyright Kluwer Academic Publishers 2003 energy saving, horticulture, real options, simulation, technology adoption, uncertainty, 4 2003 24 4 Environmental and Resource Economics 379 394 http://hdl.handle.net/10.1023/A:1023617318184 text/html Access to full text is restricted to subscribers. Paul Diederen p.j.m.diederen@lei.wag-ur.nl Frank van Tongeren Hennie van der Veen
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article Climate Policy without Tears CGE-Based Ancillary Benefits Estimates for Chile This study examines a hithertoneglected set of benefits from climate policy, viz., the reduction in emissions of localair pollutants and the associated healthbenefits, in this case for residents ofSantiago de Chile. By using an economy-widemodel, we are able to compare these monetisedbenefits to the direct costs of carbonabatement, thereby determining the scope for “no regrets” CO 2 reductions. Sensitivityanalysis is performed in recognition of theuncertainty surrounding certain key parameterand exogenous variable values – notably, households' willingness to pay (WTP) forreduced mortality and morbidity risk, and thesubstitution elasticities among energy sourcesand between energy and other inputs. Ourresults suggest that, even with the mostconservative assumptions (low WTP, lowelasticities), Chile could reduce CO 2 emissions by almost 20% from the 2010 baselinewith no net welfare loss, though a 10%reduction is closer to “optimal”. If insteadChile were to target a 20% reduction inparticulate concentrations, a particulate taxwould incur slightly lower costs than anequivalent carbon tax to achieve the samehealth benefits. While the latter is asecond-best method of addressing localpollution, the welfare loss of choosing thisinstrument could be fully compensated by carboncredit sales at a world market price of$20/tC. Copyright Kluwer Academic Publishers 2003 ancillary benefits, carbon tax, CGE modelling, climate change, “no regrets” abatement, 3 2003 25 7 Environmental and Resource Economics 287 317 http://hdl.handle.net/10.1023/A:1024469430532 text/html Access to full text is restricted to subscribers. Sébastien Dessus David O'Connor
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article Minimising Payment Vehicle Bias in Contingent Valuation Studies The payment vehicle is a crucial element inapplications of the contingent valuation methodbecause it provides the context for payment. However, in many countries a relative unfamiliarity with theuse of tax levies and referenda can affect theplausibility of payment vehicles and lead to paymentvehicle bias. The most commonly used approach fordetermining whether payment bias exists is to usetests of convergent validity. It is demonstrated thatsimple tests of convergent validity can be ineffectivein diagnosing the existence of payment vehicle bias.Payment vehicle bias is found to occur because ofdifferences in the coverage of payment vehicles anddoubts about payment being one-off. When respondentsare found to be protesting against a particularpayment vehicle, the current state of the art approachis to delete them from the sample. In this paper analternative approach that relies on the recoding ofprotest responses is proposed. Copyright Kluwer Academic Publishers 2000 contingent valuation, payment vehicle bias, wetlands, 4 2000 16 8 Environmental and Resource Economics 407 422 http://hdl.handle.net/10.1023/A:1008368611972 text/html Access to full text is restricted to subscribers. M. Morrison R. Blamey J. Bennett j.bennett@adfa.oz.au
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article Costs and Benefits of Bycatch Reduction Devices in European Brown Shrimp Trawl Fisheries Discarding of juvenile fish is a wellrecognised problem in shrimp fisheries. In manycases, these fish are commercial species that, if not caught, could increase the productivityof other fisheries. In January 2003, Europeanlegislation was implemented by Member Statesrequiring all vessels fishing for brown shrimpto use selective trawls in order to minimisethe bycatch of other commercial species. Incomplying with the regulations, however, thecatch rate of the target species (the shrimp)is likely to be reduced. In this paper, we usea bioeconomic model to assess the impact ofbycatch reduction devices on fishing effort, catch and profitability in the European Crangon fisheries. The potential benefits (interms of higher future yields and consequentlyhigher profits) to the white-fish fisheries arealso estimated. From the model results, theregulation is expected to result in a netreduction in the profitability of the shrimpfishers. However, the benefits to thewhite-fish fishers is expected to more thanoffset this cost, resulting in an overall netbenefit. Copyright Kluwer Academic Publishers 2004 bioeconomic model, bycatch reduction, economic analysis, shrimp fisheries, 1 2004 27 1 Environmental and Resource Economics 43 64 http://hdl.handle.net/10.1023/B:EARE.0000016794.43136.0a text/html Access to full text is restricted to subscribers. Sean Pascoe sean.pascoe@port.ac.uk Andy Revill
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article The Economic Value of Air-Pollution-Related Health Risks in China: A Contingent Valuation Study The economic value of preventing adverse health effects related to air pollution is estimated using contingent valuation in three diverse locations in China. Values are estimated for three health endpoints: cold, chronic bronchitis, and fatality. Alternative statistical models are tested to study their impact on estimated willingness to pay (WTP) and on the relationship between WTP and respondent characteristics. Using the official exchange rate, the sample-average median WTP to prevent an episode of cold ranges between US$3 and US$6, the WTP to prevent a statistical case of chronic bronchitis ranges between US$500 and US$1, 000, and the value per statistical life ranges between US$4, 000 and US$17, 000. Estimated mean values are between two and thirteen times larger. Our estimates are between about 10 and 1, 000 times smaller than estimates for the US and Taiwan using official exchange rates. Indoor air quality, measured for a subset of respondents, shows no consistent relationship with WTP. Copyright Springer 2006 air quality, value per statistical life, chronic bronchitis, willingness to pay, contingent valuation, risk-risk tradeoff, mixture model, China, 3 2006 33 03 Environmental & Resource Economics 399 423 http://hdl.handle.net/10.1007/s10640-005-3606-0 text/html Access to full text is restricted to subscribers. James Hammitt jkh@harvard.edu Ying Zhou
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article Getting Cars Off the Road: The Cost-Effectiveness of an Episodic Pollution Control Program Ground-level ozone remains a serious problem in the United States. Because ozone non-attainment is a summer problem, episodic rather than continuous controls of ozone precursors are possible. We evaluate the costs and emissions reductions of a program that requires people to buy permits to drive on high-ozone days. We estimate the demand function for permits based on a survey of 1, 300 households in the Washington, DC, metropolitan area. Assuming that all vehicle owners comply with the scheme, the permit program would reduce nitrogen oxides ( $$\text{ NO }_{\mathrm{x}}$$ NO x ) by 42 tons per Code Red day at a permit price of $75. Allowing for non-compliance by 15 % of respondents reduces the effectiveness of the scheme to 33 tons of $$\text{ NO }_{\mathrm{x}}$$ NO x per day. The cost per ozone season of achieving these reductions is approximately $9 million (2008 USD). Although year-round measures, such as the Tier II emissions standards, might be preferred on benefit-cost grounds, an episodic permit system might be considered as an interim measure before the Tier II emissions standards are fully reflected in the vehicle fleet. Copyright Springer Science+Business Media Dordrecht 2014 Ground-level ozone, Episodic pollution control schemes , Mobile sources, Oxides of nitrogen $$(\text{ NO }_{\mathrm{x}})$$ ( NO x ) , Cost per ton of $$\text{ NO }_{\mathrm{x}}$$ NO x removed, Q52, Q53, Q58, 1 2014 57 1 Environmental and Resource Economics 117 143 http://hdl.handle.net/10.1007/s10640-013-9669-4 text/html Access to full text is restricted to subscribers. Maureen Cropper cropper@rff.org Yi Jiang yijiang@adb.org Anna Alberini aalberini@arec.umd.edu Patrick Baur pbaur@berkeley.edu
oai:RePEc:kap:enreec:v:28:y:2004:i:1:p:101-1222022-12-21RePEc:kap:enreec
article Generating Enhanced Fishery Rents by Internalizing Product Quality Characteristics This paper demonstrates howadditional rents are generated in a fisherycharacterized by intraseasonal variation infish characteristics, including size, condition, and composition. Based on anexpanded conceptual model of the optimalharvest rule, fish characteristics affect preand post harvest production yields and outputprices. A dynamic empirical model, which uses asystem of quality characteristics and anhedonic equation, illustrates the complexrelationships and management choices associatedwith internalizing seafood qualitycharacteristics in a hake fishery. The modelretains the regulated open access managementsystem, but controls intertemporal andintersectoral quotas, production portfolios, and total allowable catch. Results demonstratethat including revenue-side effects frominternalizing fish quality can generatesignificantly greater rents and reduce therelative benefits of increased productionyields. If excluded, bioeconomic models canunderestimate the level of regulatory rentdissipation and overemphasize managementobjectives such as full utilization, whichcould misdirect processing decisions and resultin a suboptimal resource management plan.Implications for data collection, multidisciplinary analysis, and improvements inmarine resource management are discussed. Copyright Kluwer Academic Publishers 2004 bioeconomic model, fisheries management, fish processing, golden rule, hedonic price function, intrinsic fish quality, Pacific whiting, recovery rate, 1 2004 28 5 Environmental and Resource Economics 101 122 http://hdl.handle.net/10.1023/B:EARE.0000023822.46497.3c text/html Access to full text is restricted to subscribers. Sherry Larkin slarkin@ufl.edu Gil Sylvia
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article Structural Decomposition Analysis of Physical Flows in the Economy Many environmental problems can be attributedto the extraction and emissions of physicalsubstances. Increasing our understanding of theeconomic and technological driving forcesbehind these physical flows can contribute tosolving the environmental problems related tothem. The input-output framework is a usefulsetting in which to integrate detailedinformation about economic structure andphysical flows. In this article a specificmethod in input-output analysis is reviewed, namely Structural Decomposition Analysis (SDA).It is based on comparative static analysis, which decomposes historical changes of a policyvariable into determinant effects. SDA has beenapplied, for example, to analyze the demand andtechnological driving forces of energy use, CO 2 -emissions and various other pollutantsand resources. This article examines thetheoretical aspects of structuraldecomposition, in particular those concerningphysical flows and environmental issues.Furthermore, the article includes an extensivesurvey of empirical studies. Copyright Kluwer Academic Publishers 2002 CO 2 -emissions, comparative static analysis, energy use, environmental analysis, input-output analysis, material flows, physical flows, structural change, technological change, 3 2002 23 11 Environmental and Resource Economics 357 378 http://hdl.handle.net/10.1023/A:1021234216845 text/html Access to full text is restricted to subscribers. Rutger Hoekstra Jeroen van den Bergh
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article CO 2 and Energy Efficiency of Different Heating Technologies in the Dutch Glasshouse Industry This paper uses Data Envelopment Analysis tocompute input-based technical efficiencymeasures and CO 2 and energy technicalefficiency of specialised vegetable firms inthe Netherlands over the period 1991–1995. Input-based scale efficiency is also calculatedfor each firm. These efficiency measures aregenerated for firms with different heatingtechnologies. The empirical results indicatethat firms use energy quite efficiently and areless efficient in terms of CO 2 emissions. Differences in CO 2 (energy) efficiencyacross different technologies are (not)statistically significant. In particular, firms using traditional heating technologiesare less efficient in terms of CO 2 . Scaleadjustments can provide an importantcontribution to further efficiencyimprovements. Copyright Kluwer Academic Publishers 2003 CO 2 emission, energy use, heating technology, horticulture, 4 2003 24 4 Environmental and Resource Economics 395 407 http://hdl.handle.net/10.1023/A:1023684316366 text/html Access to full text is restricted to subscribers. Alfons Lansink alfons.oudelansink@alg.abe.wag-ur.nl Elvira Silva esilva@fep.up.pt
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article The Value of Flexibility: Preservation, Remediation, or Development for Ginostra? We are concerned with land allocation andinvestment decisions when dealing withpartially degraded areas that might be (1)remediated and returned to a more natural state;or (2) irreversibly developed. This type ofproblem seems particularly relevant in Europewhere the issue of wilderness conservation isof less concern than the remediation oflandscapes which have been altered by previouseconomic activities. Traditional expectedpresent value analysis will fail to capture thevalue of investments that might be undertakensequentially or when certain investments areirreversible. We show how to determine, withina discrete-time, stochastic model, the optimaladaptive development strategy and how tocalculate the option value of flexibility. Thetheoretical model is then applied to Ginostra, a town on Stromboli, an island off the southerncoast of Italy. Copyright Kluwer Academic Publishers 2004 land allocation, quasi-option value, stochastic programming, 2 2004 29 10 Environmental and Resource Economics 219 229 http://hdl.handle.net/10.1023/B:EARE.0000044609.35994.ee text/html Access to full text is restricted to subscribers. V. Bosetti valentina.bosetti@feem.it J.M. Conrad E. Messinat
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article Parametric and Semi-Nonparametric Estimation of Willingness-to-Pay in the Dichotomous Choice Contingent Valuation Framework Standard procedures for extractingwillingness-to-pay (WTP) from dichotomouschoice CV questionnaires rely heavily uponparametric assumptions regarding thedistribution and form of WTP in the sampledpopulation. However, theory provides littleguidance regarding which parametricspecification to use and the resulting WTPestimates can be sensitive to the selectionsmade. Here we compare and contrast severalparametric and semi-nonparametric estimatorsthat have been proposed in the literature, examining the sensitivity of the resulting WTPestimates to the underlying distribution ofpreferences and the estimation procedureemployed. Copyright Kluwer Academic Publishers 2004 dichotomous choice, estimators, 4 2004 27 4 Environmental and Resource Economics 451 480 http://hdl.handle.net/10.1023/B:EARE.0000018518.55067.b2 text/html Access to full text is restricted to subscribers. John Crooker crooker@cmsu1.cmsu.edu Joseph Herriges
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article Factors Determining the Adoption of Energy-Saving Technologies in Swiss Firms: An Analysis Based on Micro Data This study investigates the factors that determine firms’ decisions to adopt energysaving technologies. We distinguish between the decisions of whether or not to use a technology (“inter-firm diffusion”), and of how intensely to use a technology (“intra-firm diffusion”). The empirical model used accommodates several effects that have been postulated in the theoretical diffusion literature: firm and industry heterogeneity, strategic considerations and external effects. Data for 2, 324 Swiss firms for the year 2008 is used, with separate information for four categories of energy-saving technology applications (electromechanical and electronic, motor vehicles and traffic engineering, construction, power-generating processes). The results reveal significant differences with respect to firm characteristics and adoption barriers between inter-firm and intrafirm diffusion. In practically all cases, positive net external effects of adoption can be found. Inducement effects, particularly those traced back to intrinsic motivations for environment-friendly technologies, show clearly positive effects on adoption behavior. Copyright Springer Science+Business Media B.V. 2013 Energy efficient technologies, Energy-saving technologies, Technology adoption, Technology diffusion, 3 2013 54 3 Environmental and Resource Economics 389 417 http://hdl.handle.net/10.1007/s10640-012-9599-6 text/html Access to full text is restricted to subscribers. Spyros Arvanitis arvanitis@kof.ethz.ch Marius Ley ley@kof.ethz.ch
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article Growth, Environment and Uncertain Future Preferences The attitude of future generations towards environmental assets may well be different from ours, and it is necessary to take into account thispossibility explicitly in the current debate about environmental policy. The question we are addressing here is: should uncertainty about futurepreferences lead to a more conservative attitude towards environment?Previous literature shows that it is the case when society expects that onaverage future preferences will be more in favor of environment than ours, but this result relies heavily on the assumption of a separability betweenconsumption and environmental quality in the utility function. We show thatthings are less simple when preferences are non-separable: the attitude ofthe society now depends not only on the expectation of the change inpreferences but also on the characteristics of the economy (impatience, intertemporal flexibility, natural capacities of regeneration of theenvironment, relative preference for the environment), on its history(initial level of the environmental quality) and on the date at whichpreferences are expected to change (near or far future). Copyright Kluwer Academic Publishers 2004 environment, growth, preferences, uncertainty, 1 2004 28 5 Environmental and Resource Economics 31 53 http://hdl.handle.net/10.1023/B:EARE.0000023820.15522.a4 text/html Access to full text is restricted to subscribers. Alain Le Kama Katheline Schubert schubert@univ-paris1.fr
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article Intertemporal Permit Trading for the Control of Greenhouse Gas Emissions This paper integrates two themes in the intertemporal permitliterature through the construction of an intertemporal bankingsystem for a pollutant that creates both stock and flow damages. A permit banking system for the special case of a pollutant thatonly causes stock damages is also developed. This latter, simpler case corresponds roughly to the greenhouse gas emissionreduction regime proposed by the U.S. Department of State as ameans of fulfilling the U.S. commitment to the FrameworkConvention on Climate Change. This paper shows that environmentalregulators can achieve the socially optimal level of emissionsand output through time by setting the correct total sum ofallowable emissions, and specifying the correct intertemporaltrading ratio for banking and borrowing. For the case ofgreenhouse gases, we show that the optimal growth rate of permitprices, and therefore the optimal intertemporal trading rate, hasthe closed-form solution equal to the ratio of current marginalstock damages to the discounted future value of marginal stockdamages less the decay rate of emissions in the atmosphere. Given a non-optimal negotiated emission path we then derive apermit banking system that has the potential to lower net socialcosts by adjusting the intertemporal trading ratio taking intoaccount the behavior of private agents. We use a simplenumerical simulation model to illustrate the potential gains fromvarious possible banking systems. Copyright Kluwer Academic Publishers 2001 emission trading, greenhouse gases, marketable permits, stock pollutant, 3 2001 19 7 Environmental and Resource Economics 229 256 http://hdl.handle.net/10.1023/A:1011124215404 text/html Access to full text is restricted to subscribers. Paul Leiby leibypn@ornl.gov Jonathan Rubin jonathan.rubin@umit.maine.edu
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article Employment and Environmental Protection One of the most pressing problems in an economy intransition is that of unemployment. Hitherto the`costs' of this unemployment have either focused onthe value of the lost production, or on the costs tothe government of supporting the unemployed. From asocial viewpoint this is inappropriate. In this paper, we discuss the costs of unemployment in terms of theirimpacts on human welfare, particularly the healtheffects. On the positive side, as inefficient industries areshut down and as production responds to marketpressures, wasteful government subsidies are reduced, as is the level of environmental pollution. Clearly, therefore, there is a trade-off between theenvironmental and economic benefits on the one handand the welfare costs of unemployment on the other.In this paper, a simple model is developed to analyzethis trade-off. A single firm has a short-runproduction function in which output is dependent onthe level of employment. The present position ischaracterized by `inefficiency' in that the firm ismaking a loss and overproduction is taking place.Environmental damage is a function of the level ofoutput. The efficient production point is known, asare the efficiency prices.The problem to be solved is to minimize the costs ofmoving to the efficient point. The papercharacterizes the efficient dynamic path and givessome illustrations of such a path for the coal sectorin Russia, for given values of the efficiency losses, the environmental costs of using coal and the costs ofunemployment. Copyright Kluwer Academic Publishers 2000 costs of unemployment, health effects, human welfare, 4 2000 15 4 Environmental and Resource Economics 297 322 http://hdl.handle.net/10.1023/A:1008324810845 text/html Access to full text is restricted to subscribers. A. Markandya
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article Economic Benefits Resulting From Irrigation Water Use: Theory and an Application to Groundwater Use Traditional economic analysis using a crop production function approachhas assumed that all variable factors, including irrigation water, arefully employed in the crop production process. However, this paper firstdemonstrates that economic benefits of irrigation water areoverestimated when the crop production function, and therefore theirrigation water demand function, is expressed in terms of irrigationwater supplied, rather than consumptive irrigation water use. Second, the paper demonstrates that the magnitude of the estimation bias isproportional to the rate of irrigation water losses through leaching, runoff and evaporation. Consequently, the model misspecification problemwould lead to increased irrigation water use and reduce incentives forfarmers to adopt improved irrigation technologies. Copyright Kluwer Academic Publishers 2000 applied water, consumptive water use, economic benefits, indirect-profit maximization, misspecification bias, 1 2000 17 9 Environmental and Resource Economics 73 87 http://hdl.handle.net/10.1023/A:1008340504971 text/html Access to full text is restricted to subscribers. C.S. Kim ckim@econ.ag.gov Glenn Schaible
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article Voluntary Environmental Agreements and Competition Policy Voluntary environmental agreements are oftensuspected to promote collusive practicesbetween participating firms. The paperaddresses the antitrust implications ofGermany's voluntary Dual Management System forPackaging Waste Collection and Recycling (DSD). It uses analytical tools of the economictheory of the firm to examine features ofDSD's governance structure that were oftenidentified to impede competition. While thepaper does not argue that DSD performs asefficiently as a hypothetical solution in amore competitive setting, it shows that thesefeatures have an economic rationale from theviewpoint of the theory of the firm. Thegeneral conclusion is that it is necessary tocarefully analyze the institutional fine-tuningof a voluntary agreement in order to derive theoverall impact stemming from a formal lack ofcompetition. A more case-to-case-oriented, institutional research approach could thereforefruitfully supplement model-driven, theoreticalanalyses of voluntary environmental agreementsand their effect on market competition. Copyright Kluwer Academic Publishers 2004 competition policy, theory of the firm, voluntary environmental agreements, waste management, 4 2004 28 8 Environmental and Resource Economics 435 449 http://hdl.handle.net/10.1023/B:EARE.0000036772.11358.91 text/html Access to full text is restricted to subscribers. Markus Lehmann lehmann@mpp-rdg.mpg.de
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article Climate Policies and Induced Technological Change: Which to Choose, the Carrot or the Stick? Policies to reduce emissions of greenhousegases such as CO 2 , will affect the rate andpattern of technological change in alternativeenergy supply and other production processes.Imperfections in markets for non-pollutingtechnologies imply that a decentralised economydoes not deliver a socially optimal outcome, and this could justify policy interventionssuch as subsidies. This paper considers thewelfare effects of technology subsidies as partof a carbon abatement policy package. We arguethat the presence of spillovers in alternativeenergy technologies does not necessarily implythat subsidy policies are welfare improving. Weillustrate this point in the context of ageneral equilibrium model with two forms ofcarbon-free energy, an existing “alternative energy” which is a substitute for carbon-basedfuels, and “new vintage energy” which providesa carbon-free replacement for existing energyservices. Subsidisation of alternative energyon the grounds of spillover effects can bewelfare-worsening if it crowds-out new vintagetechnologies. Copyright Kluwer Academic Publishers 2004 climate change policies, computable general equilibrium model, induced technological change, policy instruments, spillovers, 1 2004 27 1 Environmental and Resource Economics 21 41 http://hdl.handle.net/10.1023/B:EARE.0000016787.53575.39 text/html Access to full text is restricted to subscribers. Snorre Kverndokk snorre.kverndokk@frisch.uio.no Knut Rosendahl Thomas Rutherford
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article Forest Conservation – Too Much or Too Little? A Political Economy Model This paper studies the formation offorest policy when the government isinfluenced by an environmental lobbyand an industrial lobby representing anon-competitive wood processing industry.Government decides on forestconservation by way of restricting timberharvesting. Lobbying is modelledas a common agency game with differencesin the efficiency of lobbying. Acomparison of the political equilibriashows that an exporting forestindustry faces a stricter conservationrequirement than a forest industrywhose production is destined for domesticmarkets. If the industrial lobbyis more efficient than the environmentallobby, conservation is insufficientfrom the social point of view. However, conservation may be insufficienteven if the environmental lobby is moreefficient in lobbying than theindustrial lobby. This is because thelobbying effort of the environmentallobby also benefits consumers thatremain politically passive. Copyright Kluwer Academic Publishers 2004 amenity valuation, common agency, forest policy, lobbying, market power, 4 2004 27 4 Environmental and Resource Economics 391 407 http://hdl.handle.net/10.1023/B:EARE.0000018520.19216.2a text/html Access to full text is restricted to subscribers. Essi Eerola essi.eerola@helsinki.fi
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article The Environmental Supply of Farm Households: A Flexible Willingness to Accept Model The purpose of the paper is toanalyse farmers' participation inenvironmental schemes, which are gaining agrowing importance within the Europeanagricultural policy. These schemes areimplemented through voluntary contracts thatpay farmers for the provision of environmentalservices. The microeconomic model that isdeveloped is a farm household model thatincorporates the producer and consumerbehaviour of the farmer to optimise hisenvironmental supply considering that theenvironmental service that he is supplying alsohas the characteristics of a public good. Defined as the difference between the profitloss in providing the environmental service andthe willingness to pay to consume this service, the household's “willingness to accept” (WTA)is compared with two flexible WTA measures thataccount for the technological flexibility ofthe environmental supply. Data come from asurvey of an agri-environmental schemeimplemented in the Walloon region of Belgiumsince 1995 and intended to protect the nestingof some endangered bird species. Econometricresults show that contingent valuation is areliable method to reveal the behaviours offarmers facing the invitation to participate inthis scheme. They also confirm that farmerbehaviour is also influenced by environmental preference. Copyright Kluwer Academic Publishers 2003 agri-environmental measures, agricultural amenities, agricultural household model, Belgium, contingent valuation method, environmental policy, willingness to accept, 2 2003 25 6 Environmental and Resource Economics 171 189 http://hdl.handle.net/10.1023/A:1023910720219 text/html Access to full text is restricted to subscribers. P. Dupraz D. Vermersch B. De Frahan L. Delvaux
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article Estimating Mortality and Economic Costs of Particulate Air Pollution in Developing Countries: The Case of Nigeria The value of statistical life is an essential parameter used in ascribing monetary values to the mortality costs of air pollution in health risk analyses. However, this willingness to pay estimate is virtually non-existent for most developing countries. In the absence of local estimates, two major benefit transfer approaches lend themselves to the estimation of the value of statistical life: the value transfer method and the meta-regression analysis. Using Nigeria as a sample country, we find that the latter method is better tailored than the former for incorporating many characteristics that vary between study sites and policy sites into its benefit transfer application. It is therefore likely to provide more accurate value of statistical life predictions for very low-income countries. Employing the meta-regression method, we find Nigeria’s value of statistical life estimate to be $489, 000. Combining this estimate with dose response functions from the epidemiological literature, it follows that if Nigeria had mitigated its 2006 particulate air pollution to the World Health Organisation standards, it could have avoided at least 58, 000 premature deaths and recorded an avoided mortality related welfare loss of about $28 billion or 19 % of the nation’s GDP for that year. Copyright Springer Science+Business Media B.V. 2013 Air pollution, Dose response function, Meta-regression, PM 10 , Value transfer, Value of statistical life, I18, Q28, Q53, Q56, 3 2013 54 3 Environmental and Resource Economics 361 387 http://hdl.handle.net/10.1007/s10640-012-9598-7 text/html Access to full text is restricted to subscribers. Natina Yaduma natina.yaduma@postgrad.manchester.ac.uk Mika Kortelainen mika.kortelainen@vatt.fi Ada Wossink ada.wossink@manchester.ac.uk
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article Interview Effects in an Environmental Valuation Telephone Survey Because of the lack of markets for many environmental services, economists have turned to valuation surveys to estimate the value of these services. However, lack of market experience may cause respondents in valuation surveys to be more prone to interview effects than they would be with other opinion surveys. Without reference to market price or experience, respondents are less likely to have well-defined preferences, which may cause respondents to be more easily influenced by the interview process and characteristics of the interviewer. In this paper, we investigate interview effects in a random digit dial telephone survey of recycling valuation and behavior. Following previous research in both psychology and survey methodology, we test the direct effects of interviewer gender and race, as well as the interaction effects between interviewer and respondent characteristics. Using data from 130 interviewers and 1, 786 interviewees, we apply a hierarchical regression model that accounts for the clustering of interviews and controls for a variety of other confounding variables. We confirm the existence of both direct and conditional interviewer effects. Respondents state higher willingness to pay when interviewed by white or female interviewers than by non-white or male interviewers. There were also significant interaction effects between interviewer and respondent characteristics. The directions of the interviewer effects are consistent with previous survey research and social psychology theories. We also identify some non-traditional interview process factors that have an influence on survey responses. Copyright Springer Science+Business Media B.V. 2011 Interview effects, Willingness to pay, Recycling, Social attribution model, 1 2011 49 5 Environmental and Resource Economics 47 64 http://hdl.handle.net/10.1007/s10640-010-9423-0 text/html Access to full text is restricted to subscribers. Min Gong David Aadland aadland@uwyo.edu
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article Save a Tree and Save a Life: Estimating the Health Benefits of Urban Forests Abstract Do trees in urban areas benefit human health? More than 100 million Americans live in large cities, yet little is known about the health benefits of the trees they live with. I provide causal evidence on the elasticity of air pollution and mortality to urban forest loss from the exogenous introduction of the emerald ash borer insect to the continental United States. Trees benefit urban health by reducing pollution; dieback that affects up to 5.8% of city forests is associated with increases in mean PM2.5 levels that reach 4.4%. Damage to city forests ultimately leads to excess deaths of up to 1.8%; much of this increase is driven by increases in cardiovascular and respiratory disease mortality. If the estimated median elasticity of all-cause mortality to tree damage of − 0.42 is extrapolated to all forests in the urban continental United States, my results imply urban forests reduced all-cause mortality by 29.3%, or 299, 000 deaths total, in 2014. Human health, Human mortality, Air pollution, Urban forests 3 2022 82 7 6 Environmental and Resource Economics 657 680 http://link.springer.com/10.1007/s10640-022-00677-y text/html Abstract Bing Yang Tan tanby91@nus.edu.sg National University of Singapore
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article The Maximum Sustainable Yield of Artisanal Fishery in Zanzibar: A Cointegration Approach The objective of this study is to analyze the scope for expanding theartisanal fishery in Zanzibar and to present cointegration as an econometricmethod to estimate the maximum sustainable yield (MSY) in fishery. For thatpurpose the Schaefer and Fox surplus production models are considered.Application of cointegration is discussed to test whether there is atendency to long run equilibrium between catch and effort as assumed bythe surplus production models and implied by the MSY concept. Moreover, estimation of the parameters is dealth with. Application to data relating toartisanal fishery in Zanzibar shows that there is support for a Fox model.Moreover, we find that the current catch is only about 40 percent of theestimated MSY, but the prevalent effort is about two times bigger than theestimated optimum effort. It appears therefore that the fishery in Zanzibaris biologically overfished. Copyright Kluwer Academic Publishers 2001 artisanal fishery, cointegration, maximum sustainable yield (MSY), overfishing, Zanzibar, 4 2001 19 8 Environmental and Resource Economics 311 328 http://hdl.handle.net/10.1023/A:1011624007410 text/html Access to full text is restricted to subscribers. Adolf Mkenda Henk Folmer henk.folmer@alg.shhk.wag-ur.nl
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article Can Variations in Temperature Explain the Systemic Risk of European Firms? Abstract We employ a $$\varDelta CoVaR$$ΔCoVaR model in order to measure the potential impact of temperature fluctuations on systemic risk, considering all companies from the STOXX Europe 600 Index, which covers a wide range of industries for the period from 1/1/1990 to 29/12/2017. Furthermore, in this study, we decompose temperature into 3 factors; namely (1) trend, (2) seasonality and (3) anomaly. Findings suggest that, temperature has indeed a significant impact on systemic risk. In fact, we provide significant evidence of either positive or nonlinear temperature effects on financial markets, while the nonlinear relationship between temperature and systemic risk follows an inverted U-shaped curve. In addition, hot temperature shocks strongly increase systemic risk, while we do witness the opposite for cold shocks. Additional analysis shows that deviations of temperature by $$1\, ^{\circ }\hbox {C}$$1∘C can increase the daily Value at Risk by up to 0.24 basis points. Overall, higher temperatures are highly detrimental for the financial system. Results remain robust under the different proxies that were employed to capture systemic risk or temperature. Conditional Value at Risk, Systemic risk, Climate change, Temperature 4 2019 74 12 10 Environmental and Resource Economics 1723 1759 C21 C33 G32 Q54 http://link.springer.com/10.1007/s10640-019-00385-0 text/html Abstract Panagiotis Tzouvanas p.tzouvanas@sussex.ac.uk University of Sussex University of Portsmouth Renatas Kizys r.kizys@soton.ac.uk University of Southampton Ioannis Chatziantoniou ioannis.chatzianontoniou@port.ac.uk University of Portsmouth Roza Sagitova roza.sagitova@port.ac.uk University of Portsmouth
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article Uniform and Non-Uniform Second-Best Input Taxes We investigate second-best, input-based taxes foragricultural nonpoint pollution control when marketprices are endogenous and production isheterogeneous. Theoretically, we derive the optimalforms of taxes which take account of heterogeneity(non-uniform taxes) and a tax which does not (auniform tax). Empirically, we use a multi-factor, market-equilibrium simulation model to determineoptimal tax rates and associated equity effects, particularly differences in landowner gains/lossesacross a heterogeneous region. When market prices areendogenous, second-best tax policies result inpecuniary externalities that affect existingenvironmental externalities. In particular, thepecuniary externalities amplify the effect of producerheterogeneity on determination of sub-regionaldifferences in tax rates and returns to land, particularly for the uniform policy. With endogenousprices, the uniform tax rate is considerably higherthan any of the non-uniform rates and, ironically, thenon-uniform taxes result in less dispersion oflandowner gains across sub-regions than the uniformtax. Copyright Kluwer Academic Publishers 2001 equity, fertilizer tax, heterogeneity, input-based tax, nutrient runoff, nonpoint pollution, second-best, 1 2001 19 5 Environmental and Resource Economics 1 22 http://hdl.handle.net/10.1023/A:1011192110429 text/html Access to full text is restricted to subscribers. Roger Claassen claassen@ers.usda.gov Richard Horan horan@msu.edu
oai:RePEc:kap:enreec:v:34:y:2006:i:4:p:493-5152022-12-21RePEc:kap:enreec
article The Effect of Off-farm Work on the Intensity of Agricultural Production Changes in agricultural production methods have been associated with environmental pressure and a loss of natural habitats. This paper explores the extent to which farmer participation in off-farm work (an increasing phenomenon in most developed countries) changes the intensity of agricultural input use focusing, in particular, on fertilizer and crop protection product use. A sample selection model that accounts for both unobserved heterogeneity between farms and the potential simultaneity between farm operations and hours worked off-farm is estimated for 2, 419 farms in England and Wales. The econometric evidence indicates that the input intensity of products which have well-established links to environmental damage can increase as well as decrease. The results suggest that that fertilizer intensity may decline as off-farm labor increases while the use of crop protection per hectare increases as off-farm work increases. Copyright Springer 2006 crop protection, farm household model, fertilizer, input intensity, multifunctionality, off-farm work, panel, Q53, Q12, Q24, 4 2006 34 8 Environmental and Resource Economics 493 515 http://hdl.handle.net/10.1007/s10640-006-0012-1 text/html Access to full text is restricted to subscribers. E. Phimister D. Roberts deb.roberts@abdn.ac.uk
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article The economics of a stock pollutant: Aldicarb on Long Island This paper develops a dynamic model of groundwater contamination by the pesticide aldicarb on eastern Long Island. We estimate what the likely concentration would have been under static profit maximization and the marginal damage coefficient implied by the New York State health standard of 7 ppb. Based on our model, it appears that the concentration of aldicarb will not decline below 7 ppb until 1996 and that the shadow price of the current health standard is about $475, 000 per year. Copyright Kluwer Academic Publishers 1992 Economics, stock pollutants, aldicarb, eastern Long Island, 3 1992 2 5 Environmental & Resource Economics 245 258 http://hdl.handle.net/10.1007/BF00376199 text/html Access to full text is restricted to subscribers. Jon Conrad Lars Olson
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article Winners, Losers, and the Nuclear-Waste Dilemma This paper explores how property-right assignment affects social efficiency when a public program has both “public good” and “public bad” components. We show that when willingness to accept a public bad exceeds the willingness to pay, the net benefit is unambiguously lower when the property right supports the status quo institutional structure. Thus, Kaldor–Hicks efficiency tests tend to favor public programs and mitigation over the status quo even when mitigation negatively affects another group. To illustrate the result, we develop social-cost estimates for moving nuclear waste from current temporary-storage facilities to a permanent central repository at Yucca Mountain, NV, USA. For a representative city with a population of 226, 195, the present value of the external cost of shipping waste is $1.42 billion when those living near temporary nuclear-waste storage facilities are assigned the property right to “health and safety.” That number swells to $5.95 billion when those living near the transport route are assigned the property right. Thus, property-right assignment affects the efficient level of nuclear-waste, and thus nuclear energy, produced. Copyright Springer 2006 Coase theorem, nuclear-waste storage, nuclear-waste transport, public bads, WTA and WTP, 2 2006 34 06 Environmental & Resource Economics 317 338 http://hdl.handle.net/10.1007/s10640-006-0007-y text/html Access to full text is restricted to subscribers. Mary Riddel mriddel@unlv.nevada.edu R. Schwer
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article Benefits of a Reallocation of Nitrate Emission Reductions in the Rhine River Basin In an attempt to improve ecological conditions of theRhine, emission reduction targets have been set fordifferent substances. For most substances targets havebeen met. However, nutrient emission reductions arebehind schedule. It may be clear from intuition, andhas also often been described in economic literature, that a flat reduction rate applied to all emittingsectors, though appealing because of equity reasons, may not be cost-effective. This paper explores theleast cost allocation of nitrate emission reductionsfor the Rhine river basin, analysing differentagricultural sectors and wastewater treatment plants.Results show that costs of meeting emission reductiontargets can be brought down by almost 20% through aclever allocation of these targets. Copyright Kluwer Academic Publishers 2001 cost-effectiveness, nutrients, Rhine, river basin policies, water quality, 1 2001 18 1 Environmental and Resource Economics 19 41 http://hdl.handle.net/10.1023/A:1011104721510 text/html Access to full text is restricted to subscribers. Rob van der Veeren Rob.van.der.Veeren@ivm.vu.nl Richard Tol
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article Endogenous Future Preferences and Conservation A dynamic optimization model is developed in whichuncertainty about future preferences is endogenous, namely depending on the state of the environment atthe time the change in preferences occurs.Endogeneizing preferences not only provides economicintuition to previous results but also implies thatoptimal policies are less conservative. Copyright Kluwer Academic Publishers 2000 endogenous future preferences, stock of the environmental asset, uncertainty, 2 2000 16 6 Environmental and Resource Economics 253 262 http://hdl.handle.net/10.1023/A:1008361604063 text/html Access to full text is restricted to subscribers. Maria Cunha-E-Sá mcunhasa@fe.unl.pt Clara Costa-Duarte mcduarte@fe.unl.pt
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article The Valuation of the IJmeer Nature Reserve using Conjoint Analysis This paper describes an application of conjointanalysis. The subject of the valuation study isthe IJmeer nature reserve, which will be partlydestroyed when the new residential area IJburgis built. This paper addresses the followingquestion: ‘What is the extent of the loss ofgreen and recreational values?’. In this study, the conjoint analysis consists of threedifferent analyses based on a three-piecevaluation question. The respondents are askedto subsequently rank, mark and indicate theacceptability of a set of six cards. Copyright Kluwer Academic Publishers 2003 3 2003 25 7 Environmental and Resource Economics 343 356 http://hdl.handle.net/10.1023/A:1024447503683 text/html Access to full text is restricted to subscribers. Barbara Baarsma barbarab@seo.fee.uva.nl
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article How Much Will It Cost to Join the Club? The Extra Costs of Approximating Lithuanian Environmental Laws with Those of the European Union This paper presents estimates of costsassociated with approximating Lithuanianenvironmental protection legislation with thatof the European Union (EU). Lithuania is oneof twelve EU associate members in Central andEastern Europe that is currently preparing foraccession by approximating their legislationwith that of the EU. The costs of fifteen EUdirectives are considered and details are givenon four directives. Necessary investments maytotal Euro 1500 million by 2015 and the presentvalue of all annualized costs is expected to beabout Euro 2200 million. In 2015, annualized costsare estimated to be approximately Euro 500 million, but these costs are only part of the totalcosts of approximation. Non-environmentalcosts are not considered. Assuming a modestlyambitious average annual growth of GDP of 2.0%per year implies that approximation with thefifteen directives analyzed will cost roughly3.5% of GDP in 2015. This level of additional commitment to environmentalprotection is itself much higher than the 2.0%of GDP being spent on average by OECD countriesand suggests the possibility of a substantialeconomic burden on the Lithuanian economy. Public budgets and households are expected tocarry a substantial portion of this cost, because many directives are the responsibilityof national and local governments. Making theright choices that are expected to be part ofapproximation with the environmental acquis is likely to benefit from carefulcomparisons of costs and willingness to pay forthe environmental benefits of approximation. Copyright Kluwer Academic Publishers 2003 abatement, Central and Eastern Europe Compliance, costs, European Union, 2 2003 26 10 Environmental and Resource Economics 279 303 http://hdl.handle.net/10.1023/A:1026327126495 text/html Access to full text is restricted to subscribers. Randall Bluffstone randy_bluffstone@Redlands.edu Daiva Semeniene aapc@aapc.lt Jochem Jantzen tme@tme.nu
oai:RePEc:kap:enreec:v:20:y:2001:i:2:p:91-1022022-12-21RePEc:kap:enreec
article Valuing The Beneficts of Air Pollution Abatement Using a Health Production Function A Case Study of Panipat Thermal Power Station, India The Indian economy today is highly prone to industrial pollution and ismaking compliance decisions in order to meet environmental standards.Environmental regulations impose significant costs upon industry that arefairly high and, therefore, require economic justification. This justificationcan be given by estimating the benefits associated with these costs. Whilethe scientific rationale behind air quality preservation is well understood, its economic rationale for a developing country like India, has to beverified. The objective of the present paper is to estimate the economicvalue that people in an urban area in India (Panipat Thermal Power Station(PTPS) Colony in Panipat, Haryana) place upon improving the air quality.The dose-response method, based on the Gerking and Stanley (1986) model, is used to estimate the economic benefits of air quality improvement. Theseestimates range from one to two percent of monthly income. Income andhealth status variables were significant determinants of peoples'willingness to pay (WTP) for air quality improvements. This lends supportto the neo-conventional wisdom `act now to protect the environment beforeit is too late'. These people are ready to pay for environmentalimprovements. We do believe, however, that the relatively successfulapplication of the dose response method at PTPS colony suggests that thetechnique can be more widely applied in developing countries like India. Copyright Kluwer Academic Publishers 2001 air quality, dose response method, willingness to pay, 2 2001 20 10 Environmental and Resource Economics 91 102 http://hdl.handle.net/10.1023/A:1012635627808 text/html Access to full text is restricted to subscribers. Surender Kumar D.N. Rao dnrao@vsnl.com
oai:RePEc:kap:enreec:v:37:y:2007:i:1:p:7-322022-12-21RePEc:kap:enreec
article Making a difference — how environmental economists can influence the policy process — a case study of David W Pearce Can environmental economists influence policy? If so, how? This paper addresses these two questions using the late David Pearce’s career as a case study. Influence can be exercised, but Pearce’s career shows that certain conditions must be met. The first is desire: he wanted to influence policy, and directed a high proportion of his efforts to doing so. He focused particular attention on the power centres of his time — the OECD, World Bank, European Commission, UN, UK government; his influence was aided by his status and location as a professor in a prestige university (UCL) in a major global city (London). His messages were consistent and clear: theory is important, and can be used to frame most environmental challenges as regards both explanation and solution; externalities can be valued; assessing benefits and costs of options is important; market signals (taxes etc) and incentives generally are powerful shapers of behaviour; stock of capital (human, built, natural) is a key measure of sustainability. He communicated simply and clearly, in words and phrases that Ministers for Finance and journalists could understand. All of the broadsheet newspapers in England (Financial Times, Guardian, Independent, Telegraph, Times) were grist to Pearce’s mill of advocacy for environmental economics. He provided the Blueprint books that could be read on a commute and summaries to the media that they could fit into a 1, 000 word piece. He didn’t seek out, but neither did he shirk controversy. He worked with various interest groups and politicians, but never to the point were he was co-opted. He initiated and directed the MSc in Environmental and Resource Economics that created an ever-widening and influential pool of advocates for his ideas. Finally, he achieved a prodigious academic output that ensures a sort of immortality, and provided the intellectual ballast the enabled his policy influence. Copyright Springer Science+Business Media, Inc. 2007 Policy influence, Communication, Media, Environmental economics, Incentives and behaviour, Benefit cost analysis, Valuing externalities, World bank, OECD, European commission, UNECE, 1 2007 37 5 Environmental and Resource Economics 7 32 http://hdl.handle.net/10.1007/s10640-007-9116-5 text/html Access to full text is restricted to subscribers. Frank Convery Frank.convery@ucd.ie
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article A Ricardian Analysis of the Impact of Climate Change on European Agriculture Abstract This research estimates the impact of climate on European agriculture using a continental scale Ricardian analysis. Climate, soil, geography and regional socio-economic variables are matched with farm level data from 41, 030 farms across Western Europe. We demonstrate that a median quantile regression outperforms OLS given farm level data. The results suggest that European farms are slightly more sensitive to warming than American farms with impacts from $$+$$ + 5 to $$-$$ - 32 % by 2100 depending on the climate scenario. Farms in Southern Europe are predicted to be particularly sensitive, suffering losses of $$-$$ - 5 to $$-$$ - 9 % per degree Celsius. Ricardian analysis, Climate change, European agriculture, Climate change economics, Quantile regression 4 2017 67 8 5 Environmental and Resource Economics 725 760 Q54 Q51 Q15 http://link.springer.com/10.1007/s10640-016-0001-y text/html Abstract Steven Passel steven.vanpassel@uantwerpen.be University of Antwerp Yale University Hasselt University Emanuele Massetti emanuele.massetti@pubpolicy.gatech.edu Georgia Institute of Technology Robert Mendelsohn Robert.mendelsohn@yale.edu Yale University
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article Environmental Regulations Under Simple Negligence or Strict Liability We use negligence and strict liability as the basis for environmentalregulations and show that, when jurisdictions compete for firms that engagein environmentally risky behaviour, strict liability implements the sociallyoptimal outcome while simple negligence does not, even if the jurisdictionsfully cooperate in setting standards of care. Consequently, we argue that, even if jurisdictions delegate standard setting to a central authority, likein the European Union, this would not implement the socially optimaloutcome. We also demonstrate that harmonization of environmental regulationsmakes more sense if strict liability is used rather than simple negligence. Copyright Kluwer Academic Publishers 2002 authority, liability, negligence, risky behaviour, 4 2002 21 4 Environmental and Resource Economics 367 394 http://hdl.handle.net/10.1023/A:1015144713068 text/html Access to full text is restricted to subscribers. Henry van Egteren henryve@ualberta.ca R. Smith
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article The Relationship between Waste Paper and Other Inputs in the Swedish Paper Industry A number of life-cycle assessment studies havecompared the environmental impacts of materialrecycling and incineration of waste paper. Theyhave shown that, in most cases, a recyclingscenario results in lower total energy use, butgreater use of fossil fuels. If waste paper andfossil fuels are complements, parts of theenvironmental argument for recycling isabolished. This paper estimates a cost functionfor the Swedish paper industry. If the costshares are co-integrated, an error correctionmodel will be used to model the dynamics.Short- and long-run elasticities are thencalculated to address the relationship betweenwaste paper and the other inputs: capital, labor, purchased pulp, fiber, fossil fuels andelectricity. Contrary to the life-cycleassessment studies, the results show that wastepaper and fossil fuels are substitutes, andthat waste paper and electricity arecomplements. Copyright Kluwer Academic Publishers 2003 cost function, input substitution, paper production, waste paper, 2 2003 25 6 Environmental and Resource Economics 191 212 http://hdl.handle.net/10.1023/A:1023946326838 text/html Access to full text is restricted to subscribers. Eva Samakovlis Eva.Samakovlis@konj.se
oai:RePEc:kap:enreec:v:83:y:2022:i:3:d:10.1007_s10640-022-00703-z2022-12-21RePEc:kap:enreec
article Technology Adoption and Early Network Infrastructure Provision in the Market for Electric Vehicles Abstract We document non-linear stock effects in the relationship linking emerging technology adoption and network infrastructure increments. We exploit 2010–2017 data covering nascent to mature electric vehicle (EV) markets across 422 Norwegian municipalities together with two complementary identification strategies: control function regressions of EV sales on flexible polynomials in the stock of charging stations and charging points, and synthetic control methods to quantify the impact of initial infrastructure provision in municipalities that previously had none. Our results are consistent with indirect network effects and the behavioral bias called “range anxiety, ” and support policies targeting early infrastructure provision to incentivize EV adoption. Technology adoption, Network externality, Electric vehicles, Charging infrastructure, Two-sided markets, Behavioral bias, Range anxiety, Environmental policy 3 2022 83 11 4 Environmental and Resource Economics 631 679 http://link.springer.com/10.1007/s10640-022-00703-z text/html Abstract Jeremy Dijk jeremy.vandijk@unine.ch University of Neuchâtel Nathan Delacrétaz University of Neuchâtel Bruno Lanz University of Neuchâtel ETH Zürich Massachusetts Institute of Technology
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article Buyer Liability and Voluntary Inspections in International Greenhouse Gas Emissions Trading: A Laboratory Study This paper reports a preliminary laboratoryexperiment in which traders make investments toincrease the reliability of tradableinstruments that represent greenhouse gasemissions allowances. In one half of thesessions these investments are unobservable, while in the other half traders can invitecostless and accurate inspections that makereliability investments public. We implement abuyer liability rule, so that if emissionsreductions are unreliable (i.e., sellersdefault), the buyer of the allowances cannotredeem them to cover emissions. We find thatallowing inspections significantly increasesthe reliability investment rate and overallefficiency. Prices of uninspected allowancesusually trade at a substantial discount due tothe buyer liability rule, which provides astrong market incentive for sellers to investin reliability. Copyright Kluwer Academic Publishers 2003 emissions permits, environment, experiments, Kyoto Protocol, 1 2003 25 5 Environmental and Resource Economics 101 127 http://hdl.handle.net/10.1023/A:1023665517698 text/html Access to full text is restricted to subscribers. Timothy Cason cason@mgmt.purdue.edu
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article An Economic Analysis and Simulation of Woodfuel Management in the Sahel This paper presents an economic framework and a computationalmethodology for assessing the evolution of woodfuel supply costsand the spatial distribution of biomass in a Sahelian woodlandsetting. Spatial data on standing stock and the costs oftransport to market are used to construct a supply curve for fuelto a fuel-consuming location. Given an exogenously specifieddemand, the model simulates, period by period, the extraction, regeneration, and transport of wood fuels. The model is appliedto evaluate the benefits and ecological impacts of scenarios forwoodland management around the city of N'Djamena, Chad. Copyright Kluwer Academic Publishers 2001 Africa, biomass, Chad, charcoal, fuelwood, Sahel, simulation, woodfuel, 3 2001 19 7 Environmental and Resource Economics 285 304 http://hdl.handle.net/10.1023/A:1011184808319 text/html Access to full text is restricted to subscribers. Kenneth Chomitz Charles Griffiths griffiths.charles@epamail.epa.gov
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article On the Choice Between the Stocking Rate and Time in Range Management A long standing question in range management concerns the relative importance of the stocking rate versus the length oftime during which animals graze a particular rangeland. Weaddress this question by analyzing the problem faced by a privaterancher who wishes to minimize the long run expected net unit cost (LRENC) from range operations by choosing either the stocking rate or the length of time during which his animals graze hisrangeland. We construct a renewal-theoretic model and show that, in general, this rancher's LRENC with an optimally chosen stocking rate is lower than his LRENC with an optimally chosen grazing cycle length. From a management perspective, this means that correct stocking of the range is more important than the length of time during which animals graze the range. In addition, our research shows how to address questions concerning the desirability of temporal versus non-temporal controls in managing naturalresources such as fisheries and hunting grounds. Copyright Kluwer Academic Publishers 2001 long run expected net cost, range management, stocking rate, time, 3 2001 20 11 Environmental and Resource Economics 211 223 http://hdl.handle.net/10.1023/A:1012647003818 text/html Access to full text is restricted to subscribers. Amitrajeet Batabyal aabgsh@rit.edu Basudeb Biswas E. Godfrey
oai:RePEc:kap:enreec:v:15:y:2000:i:2:p:135-1482022-12-21RePEc:kap:enreec
article Climate Change and the Representative Agent The artifice of an infinitely-lived representative agent iscommonly invoked to balance the present costs and future benefitsof climate stabilization policies. Since actual economies arepopulated by overlapping generations of finite-lived persons, this approach begs important questions of welfare aggregation.This paper compares the results of representative agent andoverlapping generations models that are numerically calibratedbased on standard assumptions regarding climate--economyinteractions. Under two social choice rules -- Pareto efficiencyand classical utilitarianism -- the models generate closelysimilar simulation results. In the absence of policies toredistribute income between present and future generations, efficient rates of carbon dioxide emissions abatement rise from15 to 20% between the years 2000 and 2105. Under classicalutilitarianism, in contrast, optimal control rates rise from 48 to 79% this same period. Copyright Kluwer Academic Publishers 2000 climate change, overlapping generations models, 2 2000 15 2 Environmental and Resource Economics 135 148 http://hdl.handle.net/10.1023/A:1008361812597 text/html Access to full text is restricted to subscribers. Richard Howarth
oai:RePEc:kap:enreec:v:17:y:2000:i:2:p:125-1442022-12-21RePEc:kap:enreec
article Voluntary Agreements and Non-Verifiable Emissions If pollution is observable, but some emissions cannot be verified by court, voluntary agreements between a regulator and an industry may bewelfare-improving compared to second-best emission taxes. Such agreementsdiffer from direct regulation in a non-trivial way. The first-best optimummay be included in the set of possible agreements, even if it is notattainable using tax instruments. The non-verifiability may, for example, beassociated with delimitation problems in defining the pollution tax base. Copyright Kluwer Academic Publishers 2000 voluntary agreements, second-best tax, non-verifiability, 2 2000 17 10 Environmental and Resource Economics 125 144 http://hdl.handle.net/10.1023/A:1008313720592 text/html Access to full text is restricted to subscribers. Karine Nyborg karine.nyborg@ssb.no
oai:RePEc:kap:enreec:v::y::i::d:10.1007_s10640-020-00424-12020-05-24RePEc:kap:enreec
article Technical Change and Green Productivity Abstract When technologies could be “dirty” and “clean” in the context of green development, technical change does not necessarily mean (green) productivity growth. This paper studies the nonlinear impact of technical change on green productivity in China by applying a panel smooth transition regression approach with a panel data set of 284 prefecture-level cities from 2004 to 2015. Green productivity is measured by the meta-frontier Malmquist–Luenberger productivity growth (MML) index. Technical change is considered in three dimensions: indigenous technical change indicated by the stock of knowledge based on patents, technology transfers from foreign direct investment (FDI), and absorptive capacity. We find a non-linear relationship between technical change and green productivity contingent on specific economic situations and the city’s endowment of natural resources. In general, indigenous technical change shows an adverse effect on green productivity in China, which is much more prominent in the resource-dependent cities than in the non-resource-dependent cities. Technology transfers from FDI may either improve or hinder green productivity growth as economic situations change, while absorptive capacity has a small but positive effect. Also, these two effects are affected by the city’s endowment of natural resources. Accordingly, we discuss some policy implications. Technical change, Green productivity, PSTR, FDI, Absorptive capacity Environmental and Resource Economics 1 28 O33 O44 Q55 Q56 http://link.springer.com/10.1007/s10640-020-00424-1 text/html Abstract Peng Li li58590247@hotmail.com Institute of Industrial Economics Yaofu Ouyang yaofuouyang@gmail.com Institute of Economics
oai:RePEc:kap:enreec:v:74:y:2019:i:1:d:10.1007_s10640-018-00313-82019-08-29RePEc:kap:enreec
article Averting Behavior Among Singaporeans During Indonesian Forest Fires Abstract We estimate averting behavior in the form of increased electricity usage in Singapore during the haze caused by Indonesian forest fires. Our results indicate that increases in fire radiative power in Indonesia result in statistically significant increases in one- and two-day ahead electricity demand. Further results show that the Indonesian fires accounted for 0.5% of Singaporean electricity demand between February 2012 and August 2017 at a total cost of over $270 million. In addition, we find that the residential electricity share increases and the industrial share decreases during fire episodes, suggesting the increase in demand may be due to Singaporeans staying home and/or increasing their air conditioning use during these times. This averting behavior is persistent, not diminishing, during periods of frequent poor air quality. Air pollution, Health, Avoidance behavior, Externalities, Forestry 1 2019 74 9 6 Environmental and Resource Economics 159 180 D62 I1 Q23 Q51 Q5 http://link.springer.com/10.1007/s10640-018-00313-8 text/html Abstract Tamara L. Sheldon Tamara.Sheldon@moore.sc.edu University of South Carolina Chandini Sankaran chandini.sankaran@bc.edu Boston College
oai:RePEc:kap:enreec:v:74:y:2019:i:1:d:10.1007_s10640-019-00324-z2019-08-29RePEc:kap:enreec
article Multiple-Purchaser Payments for Ecosystem Services: An Exploration Using Spatial Simulation Modelling Abstract This paper focuses on the issue of payments for ecosystem services (PES) mechanism design when the activity incentivised through the scheme benefits multiple groups, each of whom might be prepared to contribute to payments made through the scheme. In particular, we examine spatial coordination on the demand side of the market; that is to say, the question of which beneficiary of the PES scheme buys land-management changes on which land parcels. We show through spatial simulation modelling that it is possible for negotiation to lead to Pareto improvements when compared to solutions reached through non-cooperative strategic solutions; however, we also show that this result is not universal and only holds under certain conditions. In particular, the spatial correlation and spatial interdependence of the ecosystem service benefits are key in determining whether negotiation between beneficiaries is optimal and therefore if policy makers and designers of PES schemes should be prioritising bringing together multiple beneficiaries of ecosystem services. Ecosystem services, Multiple purchasers, Negotiation, Payments for ecosystem services (PES), Simulation modelling, Spatial coordination 1 2019 74 9 16 Environmental and Resource Economics 421 447 http://link.springer.com/10.1007/s10640-019-00324-z text/html Abstract Gregory Smith g.smith4@exeter.ac.uk University of Exeter Business School Brett Day University of Exeter Business School Amy Binner University of Exeter Business School
oai:RePEc:kap:enreec:v:74:y:2019:i:1:d:10.1007_s10640-018-00317-42019-08-29RePEc:kap:enreec
article Labor Market Distortions and Welfare-Decreasing International Emissions Trading Abstract Using a multi-region, multi-sector computable general equilibrium model, this paper analyzes the effects of international emissions trading (IET) with a focus on labor market distortions. We construct four separate models with several different labor market specifications: (1) a model without labor market distortions; (2) a model with taxinteraction effects in the labor market; (3) a model with a minimum wage; and (4) a model in which a wage curve determines wages. We use these models to analyze how the effects of IET change according to model specification. The main results from the analysis are as follows. First, we found that IET generates gains for all participants in the model without labor market distortions. Second, even in the models with labor market distortions, importers of emissions permits are highly likely to benefit. Conversely, we show that the possibility of a welfare loss from IET is not as small for exporters of permits. In particular, in the minimum wage and wage curve models, we found that the exporters of emissions permits are likely to be disadvantaged. However, this also depends on the region in question. For example, China is likely to suffer under IET, whereas Russia is likely to benefit. Finally, if we implement policies to alleviate labor market distortion simultaneously with emissions regulation, all regions receive benefit from IET. International emissions trading, Labor market, Computable general equilibrium analysis 1 2019 74 9 10 Environmental and Resource Economics 271 293 http://link.springer.com/10.1007/s10640-018-00317-4 text/html Abstract Shiro Takeda shiro.takeda@gmail.com Kyoto Sangyo University Toshi H. Arimura Waseda University Makoto Sugino Yamagata University
oai:RePEc:kap:enreec:v:74:y:2019:i:1:d:10.1007_s10640-018-00308-52019-08-29RePEc:kap:enreec
article Local Fishing Communities and Nature-Based Tourism in Baja, México: An Inter-sectoral Valuation of Environmental Inputs Abstract Nature-based tourism is often advocated as a desirable conservation strategy for small-scale fishing communities as it gives local people motivation to protect wildlife and ecosystems that attract visitors, while benefiting the community. However, valuation of environmental inputs in nature-based tourism, for instance charismatic species or scenic amenities, needs to be done correctly. Often, there are inter-sectoral costs and benefits involved that are not counted, so that determining the value of the environmental inputs to local communities may be more complex than simpler calculations might indicate. We model whales as an input to the production of wildlife viewing trips, but recognize that this occurs within a community dependent on a seasonal fishery. Standard theory suggests that industry will switch from fishing to whale watching every year when whale watching becomes marginally more profitable than fishing. We develop a simple theoretical model that allows us to analyze the interaction between the extractive and the non-extractive activities. As a case study, we use whale watching in the small coastal communities of the Bahía Magdalena lagoon complex in Baja, México. Local fishing communities, Whale watching, Valuation, Inter-sectoral effects 1 2019 74 9 2 Environmental and Resource Economics 33 52 http://link.springer.com/10.1007/s10640-018-00308-5 text/html Abstract Alberto Ansuategi alberto.ansuategi@ehu.eus UPV/EHU Duncan Knowler Simon Fraser University Tobias Schwoerer University of Alaska Anchorage Salvador García-Martínez Universidad Autónoma de Baja California Sur
oai:RePEc:kap:enreec:v:74:y:2019:i:1:d:10.1007_s10640-018-00314-72019-08-29RePEc:kap:enreec
article Special Flood Hazard Effects on Coastal and Interior Home Values: One Size Does Not Fit All Abstract Existing studies that estimate losses in home values due to being located in a designated flood zone, such as a Special Flood Hazard Area (SFHA) in the U.S., focus exclusively on either coastal or interior regions, or include both, but do not estimate separate risk effects. Using a rich data set on home sales for five counties in Connecticut, controlling for a plethora of potentially confounding effects, and applying state-of-the art doubly-robust matching methods, we show that SFHA-related risk losses can vary dramatically by location relative to the coast line, with near-coastal losses exceeding interior effects by sevenfold. We take this as evidence that home buyers hold beliefs of elevated flood risks in coastal zones, even though the official Flood Insurance Rate Map designation for those homes is identical to that of interior counterparts. To the extent that these beliefs align with objective risks, our results provide ammunition for calls for a more spatially refined rate setting policy for federal flood insurance. Special Flood Hazard Areas, Nearest-neighbor matching, Coastal versus interior flood risk, Bayesian estimation 1 2019 74 9 7 Environmental and Resource Economics 181 210 http://link.springer.com/10.1007/s10640-018-00314-7 text/html Abstract Robert J. Johnston rjohnston@clark.edu Clark University Klaus Moeltner moeltner@vt.edu Virginia Tech
oai:RePEc:kap:enreec:v:74:y:2019:i:1:d:10.1007_s10640-019-00322-12019-08-29RePEc:kap:enreec
article Optimists, Pessimists, and the Precautionary Principle Abstract The precautionary principle has emerged as a leading guide to public decision-making about environmental risks under irreversibility and uncertainty. In this paper, we adopt a two-period model with irreversibility and agents differentiated by their degree of optimism to characterize the conditions under which the precautionary principle applies. We show in particular that it is more often applied if the decision-maker has an intermediate optimism index, if scientific research is more effective at reducing uncertainty, and if the same decision-maker makes the decisions for both periods. Moreover, we show that socially optimal decisions lead to apply the precautionary principle more often than an elected decision-maker does. Precautionary principle, Irreversibility, Uncertainty, Political economy 1 2019 74 9 14 Environmental and Resource Economics 367 396 D7 D81 http://link.springer.com/10.1007/s10640-019-00322-1 text/html Abstract Meglena Jeleva meglena.jeleva@parisnanterre.fr University Paris Nanterre and Prevent’Horizon chair Stéphane Rossignol strossignol@gmail.com University Paris 8 Saint-Denis
oai:RePEc:kap:enreec:v:74:y:2019:i:1:d:10.1007_s10640-018-00315-62019-08-29RePEc:kap:enreec
article Environmental Performance and Regulation Effect of China’s Atmospheric Pollutant Emissions: Evidence from “Three Regions and Ten Urban Agglomerations” Abstract This paper employs the slack-based measure method and an extended Luenberger productivity indicator to estimate and decompose the atmospheric environmental performance under the constraints of energy and atmospheric pollutant emissions [i.e., the growth of the atmospheric environment total factor productivity (AETFP)] of the “three regions and ten urban agglomerations” (TRTAs) in China. Specifically, undesirable output is considered as both carbon and air pollutant emissions, i.e., CO2, SO2, and NOx emissions. Also, based on the proposed approach, we identify the different paths of the technical change as a crucial driver of the AETFP growth. Furthermore, using the spatial econometric model with a symmetric geographical distance weight matrix and an asymmetric economic geography weight matrix, we investigate the effect of different types of environmental regulation on the AETFP growth to verify the Porter hypothesis in China. The results show that the main drivers of China’s atmospheric environment inefficiency are air pollutant emissions (SO2 and NOx), carbon emissions, and fossil energy use. Spatially, the environment inefficiency presents a decreasing trend from northern China to southern China. The improved performance of SO2 emissions made more contributions to the AETFP growth during China’s 11th “Five-Year Plan” period (2006–2010), while NOx emissions has a marginal positive effect on the AETFP growth is marginal. Despite the differences in the technical change across regions, the technical progress offsets the negative impact of declining technical efficiency on the AETFP growth. Overall, energy-saving and emission-reduction policies and technologies in TRTAs exert a decisive influence on the AETFP growth. In particular, the spatial econometric results indicate that the market-motivated environmental regulation has a positive effect on the AETFP growth and thus conforms to the Porter hypothesis in China but does not cause the “race-to-the-bottom” effect among local governments, while the command-and-control oriented regulation leads to a “race-to-the-bottom” effect and undermines the AETFP growth. Environmental performance, Environmental regulation, Atmospheric pollutant emissions, Decomposition, Spatial lag X model, China 1 2019 74 9 8 Environmental and Resource Economics 211 242 http://link.springer.com/10.1007/s10640-018-00315-6 text/html Abstract Zhuang Miao Southwestern University of Finance and Economics Chinese Academy of Social Science Tomas Baležentis Vilnius University Zhihua Tian Shanghai University of Finance and Economics Shuai Shao shao.shuai@sufe.edu.cn Shanghai University of Finance and Economics Yong Geng Shanghai Jiaotong University Rui Wu Nanjing Normal University
oai:RePEc:kap:enreec:v:74:y:2019:i:1:d:10.1007_s10640-019-00321-22019-08-29RePEc:kap:enreec
article The Intuition Behind Income Effects of Price Changes in Discrete Choice Models, and a Simple Method for Measuring the Compensating Variation Abstract Small and Rosen’s (Econometrica 49(1):105–130, 1981) method for measuring consumer surplus using discrete choice models has been widely adopted in public policy analysis. For the case of a price change, the present paper elucidates five theoretical assumptions inherent within Small and Rosen’s measure, and employs indifference maps to demonstrate that this measure is only applicable to the context of a single discrete choice free of non-linear income effects. The paper argues that, where non-linear income effects are present, the aforementioned theoretical assumptions should be relaxed, and the consumption context revised from discrete choice to discrete–continuous demand. Furthermore, the paper proposes a simple analytical method for approximating the expected Hicksian compensating variation in the presence of non-linear income effects, and compares the empirical performance of this method against existing methods using data from Morey et al. (Am J Agric Econ 75(3):578–592, 1993). As well as offering a simple approximation, the proposed method yields insights on the potential range of the compensating variation depending on the extent of switching between choice alternatives, and on the attribution of the compensating variation to the relevant choice alternatives. Consumer surplus, Discrete choice models, Income effects, Discrete–continuous demand, Compensating variation 1 2019 74 9 13 Environmental and Resource Economics 337 366 http://link.springer.com/10.1007/s10640-019-00321-2 text/html Abstract Richard Batley R.P.Batley@its.leeds.ac.uk University of Leeds Thijs Dekker University of Leeds
oai:RePEc:kap:enreec:v:74:y:2019:i:1:d:10.1007_s10640-019-00320-32019-08-29RePEc:kap:enreec
article Managing Satellite Debris in Low-Earth Orbit: Incentivizing Ex Ante Satellite Quality and Ex Post Take-Back Programs Abstract Increased economic activity in low-Earth orbit (LEO) in the past century created debris fields that impede current and future economic activities. We propose an economic model that combines elements of patent law with space law to enable comparisons of policy instruments. In particular, we propose policies that leverage the intellectual property rights system and that facilitate additional joint research and development to incentivize ex ante increases in satellite quality. Our model also considers the impact of individual and collective ex post LEO debris take-back programs, analogous to those designed for terrestrial contexts. Our results suggest policy refinements for the outer space context that may be of interest beyond managing satellite debris in LEO. Economics of outer space, Orbital debris, Outer space pollution, Space law 1 2019 74 9 12 Environmental and Resource Economics 319 336 Q58 K32 H23 http://link.springer.com/10.1007/s10640-019-00320-3 text/html Abstract Zachary Grzelka zgrzelka@syr.edu Syracuse University Jeffrey Wagner mjwgse@rit.edu Rochester Institute of Technology
oai:RePEc:kap:enreec:v:74:y:2019:i:1:d:10.1007_s10640-019-00318-x2019-08-29RePEc:kap:enreec
article Livestock and Carnivores: Economic and Ecological Interactions Abstract Carnivores-livestock interactions cause human-wildlife conflicts worldwide. These interactions are present under a wide range of ecological and economic circumstances. This paper studies the relationship between predation mortality and natural mortality, when food availability affects natural mortality of the livestock. Semi-domestic Saami reindeer (Rangifer t. tarandus) herding in Norway is used as a case study. When predation affects reindeer density, food competition among reindeer changes, which changes weights and natural mortality in the reindeer population. An age-structured bio-economic model is presented, where this relationship is taken into account. While predation mortality may be additional to natural mortality in absence of food limitation, it can compensate for natural mortality in situations of food scarcity. Furthermore, due to density dependency in livestock weights, predation may increase the meat value of livestock. The paper analyzes how predation affects livestock production and economic performance under an optimized management scheme. One main result is that predation shifts the optimal harvesting composition towards calf harvesting and, therefore, the optimal stock composition among the different categories of animals. This contrasts findings in the existing bioeconomic literature. Furthermore, a changing harvesting pattern towards calf harvest is an important adjustment that highly limits the negative impact on profit of predation. Livestock-predation model, Food limitation, Ecological and economic compensation mechanisms 1 2019 74 9 11 Environmental and Resource Economics 295 317 Q2 Q24 http://link.springer.com/10.1007/s10640-019-00318-x text/html Abstract Anne Borge Johannesen anne.borge.johannesen@ntnu.no Norwegian University of Science and Technology Jon Olaf Olaussen jon.o.olaussen@ntnu.no Norwegian University of Science and Technology Anders Skonhoft anders.skonhoft@ntnu.no Norwegian University of Science and Technology
oai:RePEc:kap:enreec:v:74:y:2019:i:1:d:10.1007_s10640-019-00326-x2019-08-29RePEc:kap:enreec
article Dynamic Climate Policy Under Firm Relocation: The Implications of Phasing Out Free Allowances Abstract The allocation of free allowances for firms within the European Union Emissions Trading Scheme was found to lead to substantial overcompensation, which is why some stakeholders recently called for phasing out of free allowances in the near term. This paper analyzes the consequences of phasing out free allowances in a two-period model when one country unilaterally implements climate policies. A carbon price induces firms to invest in abatement capital, but may lead to the relocation of some firms. The regulator addresses the relocation problem by offering firms transfers, i.e. free allowances, conditional on maintaining the production in the regulating country. If transfers are unrestricted in both periods, then the regulator implements the first best by equalizing the carbon price with the marginal environmental damage and using transfers to prevent any relocation. However, if transfers in the future period are restricted, the planner optimally implements a declining carbon price path with the first period price exceeding the marginal environmental damage. A high carbon price triggers investments in abatement capital and thus creates a lock-in effect. With a larger abatement capital stock, firms are less affected by carbon prices in the future and therefore less prone to relocate in the second period. Unilateral climate policy, Relocation, Lock-in effect, Rebating 1 2019 74 9 18 Environmental and Resource Economics 473 503 Q54 Q56 Q58 H23 http://link.springer.com/10.1007/s10640-019-00326-x text/html Abstract Daniel Nachtigall Daniel.Nachtigall@fu-berlin.de Freie Universität Berlin
oai:RePEc:kap:enreec:v:74:y:2019:i:1:d:10.1007_s10640-018-00310-x2019-08-29RePEc:kap:enreec
article Charging Drivers by the Pound: How Does the UK Vehicle Tax System Affect CO2 Emissions? Abstract Policymakers have been considering vehicle and fuel taxes to reduce transportation greenhouse gas emissions, but there is little evidence on the relative efficacy of these approaches. We examine an annual vehicle registration tax, the vehicle excise duty (VED), which is based on carbon emissions rates. The UK first adopted the system in 2001 and made substantial changes to it in the following years. Using a highly disaggregated dataset at the trim-variant level of UK registrations and characteristics of new cars, we estimate the effect of the VED on new vehicle registrations and their carbon emissions. The VED increased the adoption of low-emissions vehicles and discouraged the purchase of very polluting vehicles, but it had a small effect on aggregate emissions. Using the empirical estimates, we compare the VED with two hypothetical taxes: a tax proportional to carbon emissions per kilometer, and a carbon tax. The VED reduces total emissions from new cars twice as much as the emissions rate tax but by half as much as the emissions tax. Much of the advantage of the emissions tax arises from adjustments in miles driven, rather than the composition of the new car sales. CO2 emissions, Vehicle registration fees, Carbon taxes, Vehicle excise duty, UK 1 2019 74 9 4 Environmental and Resource Economics 99 129 H23 Q48 Q54 R48 http://link.springer.com/10.1007/s10640-018-00310-x text/html Abstract Davide Cerruti cerrutid@ethz.ch ETH Zürich Anna Alberini aalberin@umd.edu University of Maryland Joshua Linn linn@umd.edu University of Maryland
oai:RePEc:kap:enreec:v:74:y:2019:i:1:d:10.1007_s10640-018-00309-42019-08-29RePEc:kap:enreec
article Carbon Prices and Fuel Switching: A Quasi-experiment in Electricity Markets Abstract Within the Pennsylvania–New Jersey–Maryland electricity market, Delaware and Maryland participate in the Regional Greenhouse Gas Initiative (RGGI) but other states do not, providing a quasi-experimental setting to study the RGGI program. Using a difference-in-difference framework, we find that, overall the RGGI program led to 6.22 million short tons of CO2 reduction per year in Delaware and Maryland, or about 19.10% of the average total potential annual emissions in these two states from 2009 to 2013. Counterintuitively however, the reduction is mainly achieved through reduction of coal inputs and emission leakage instead of fuel switching from coal to natural gas or from fossil fuel (coal and natural gas) to non-fossil fuel. Carbon emission market, RGGI, Fuel switching 1 2019 74 9 3 Environmental and Resource Economics 53 98 http://link.springer.com/10.1007/s10640-018-00309-4 text/html Abstract Ling Huang ling.huang@uconn.edu University of Connecticut Yishu Zhou yishuz@mst.edu Missouri University of Science and Technology
oai:RePEc:kap:enreec:v:74:y:2019:i:1:d:10.1007_s10640-019-00325-y2019-08-29RePEc:kap:enreec
article Correcting the Climate Externality: Pareto Improvements Across Generations and Regions Abstract Many argue that the present generation must reduce consumption to mitigate future climate change. However, as significant climate change is due to market failure, the correction of market failures, by definition, gives rise to the possibility of Pareto improvements. In this paper, we examine the implications of Pareto improvements both within and across generations. We employ the representative consumer model RICE-10 (a global model including different regions) to see how we could potentially distribute any benefits across and within generations such that nobody loses. The model shows that different combinations of present and future consumption along the Pareto-improving frontier yield different combinations of capital investment and emissions. We also calculate a conventional social optimum. While the social optimum, by definition, is on the Pareto efficiency frontier, it is not necessarily on the Pareto-improving segment of this frontier. Total emissions, and hence temperature change, vary significantly across different Pareto-improving scenarios. It obviously matters which generations get the utility gain, and one of our results is that for Pareto improvements where none of the gain goes to the distant future, and allowing transfers, total emissions will be higher than in the social optimum. Even without any welfare gain to the distant future, total emissions may be lower in the Pareto-improving scenarios we have considered than under the social optimum if transfers are not permitted. Moreover, in this case, carbon taxes differ substantially across regions for all Pareto improvements. Pareto improvements, Climate agreements, Intergenerational distribution, Intragenerational distribution 1 2019 74 9 17 Environmental and Resource Economics 449 472 C63 D63 D99 H23 Q54 http://link.springer.com/10.1007/s10640-019-00325-y text/html Abstract Michael O. Hoel m.o.hoel@econ.uio.no University of Oslo Ragnar Frisch Centre for Economic Research Sverre A. C. Kittelsen sverre.kittelsen@frisch.uio.no Ragnar Frisch Centre for Economic Research Snorre Kverndokk snorre.kverndokk@frisch.uio.no Ragnar Frisch Centre for Economic Research
oai:RePEc:kap:enreec:v:74:y:2019:i:1:d:10.1007_s10640-019-00323-02019-08-29RePEc:kap:enreec
article Supply-Side Climate Policy: On the Role of Exploration and Asymmetric Information Abstract In the world economy with interdependent markets for fossil fuel deposits and extracted fossil fuel, a coalition of countries may fight climate change by purchasing fossil fuel deposits for preservation. Harstad (J Polit Econ 120:77–115, 2012) has shown that the coalition’s supply-side climate policy implements the first-best. The present paper focuses on the role exploration and asymmetric information with respect to climate damage plays for the efficiency of unilateral supply-side climate policy. Under the assumption of non-strategic exploration and truthful reporting of climate damage, the deposit policy turns out to be efficient. If exploration is used strategically or the coalition misreports its climate damage, however, the deposit policy becomes inefficient. Coalition, Deposit, Extraction, Exploration, Asymmetric, Information 1 2019 74 9 15 Environmental and Resource Economics 397 420 Q31 Q38 Q55 http://link.springer.com/10.1007/s10640-019-00323-0 text/html Abstract Thomas Eichner thomas.eichner@fernuni-hagen.de University of Hagen Rüdiger Pethig pethig@vwl.wiwi.uni-siegen.de University of Siegen
oai:RePEc:kap:enreec:v:74:y:2019:i:1:d:10.1007_s10640-018-00312-92019-08-29RePEc:kap:enreec
article Demand for Green Refueling Infrastructure Abstract Despite increasing public investment in charging infrastructure for plug-in electric vehicles (PEVs), policymakers know little about drivers’ preferences for publicly-accessible charging stations. Using data from an innovative choice experiment, we estimate demand for PEV charging stations, characterizing willingness to pay for access to types of locations as well as driver tradeoffs between refueling duration and costs. Prospective PEV drivers are willing to pay the actual variable cost of recharging at public charging stations and are willing to pay to cover significant fixed costs at select locations. Not surprisingly, many prospective drivers reveal a positive willingness to accept to wait while refueling, but this varies greatly across latent classes. Choice experiment, Transportation policy, Clean transportation, Electric vehicles 1 2019 74 9 5 Environmental and Resource Economics 131 157 http://link.springer.com/10.1007/s10640-018-00312-9 text/html Abstract Tamara L. Sheldon Tamara.Sheldon@moore.sc.edu University of South Carolina J. R. DeShazo deshazo@ucla.edu University of California Richard T. Carson rcarson@ucsd.edu University of California
oai:RePEc:kap:enreec:v:74:y:2019:i:1:d:10.1007_s10640-018-00307-62019-08-29RePEc:kap:enreec
article Transitional Restricted Linkage Between Emissions Trading Schemes Abstract Linkages between Emissions Trading Systems are deemed an important element of the future climate policy landscape. They are, however, difficult to agree and remain few and far between. Temporary restrictions on permit trading have potential to facilitate and gradually approach unrestricted, full linkage. We compare the relative merits of several link restrictions in this respect, namely quantitative transfer limits, border taxes on transfers, exchange and discount rates, and unilateral linkage. To this end, we develop a simple model to have a unifying framework which, in conjunction with lessons we draw from real-world experiences, serves as a basis for a broader, policy-oriented discussion. While quantitative restrictions seem to be the natural route to full linkage, they can lead to uncertain distributional effects and weaken price signals. These aspects are mitigated under a border permit tax, but this policy seems harder to implement. Exchange rates have potential to adjust for programmes’ stringencies and raise ambition over time, but can be challenging to select. As experience corroborates, unilateral linkage can be a convenient approach. Climate change policy, Emissions trading, Linkage, Restrictions on permit trading 1 2019 74 9 1 Environmental and Resource Economics 1 32 Q58 H23 F15 http://link.springer.com/10.1007/s10640-018-00307-6 text/html Abstract Simon Quemin S.Quemin@lse.ac.uk Grantham Research Institute, London School of Economics and Political Science Christian Perthuis Christian.dePerthuis@chaireeconomieduclimat.org Paris-Dauphine University (PSL Research University)
oai:RePEc:kap:enreec:v:69:y:2018:i:1:d:10.1007_s10640-016-0068-52018-01-07RePEc:kap:enreec
article Limits to Substitution Between Ecosystem Services and Manufactured Goods and Implications for Social Discounting Abstract This paper examines implications of limits to substitution for estimating substitutability between ecosystem services and manufactured goods and for social discounting. Based on a model that accounts for a subsistence requirement in the consumption of ecosystem services, we provide empirical evidence on substitution elasticities. We find an initial mean elasticity of substitution of two, which declines over time towards complementarity. We subsequently extend the theory of dual discounting by introducing a subsistence requirement. The relative price of ecosystem services is non-constant and grows without bound as the consumption of ecosystem services declines towards the subsistence level. An application suggests that the initial discount rate for ecosystem services is more than a percentage-point lower as compared to manufactured goods. This difference increases by a further half percentage-point over a 300-year time horizon. The results underscore the importance of considering limited substitutability in long-term public project appraisal. Dual discounting, Ecosystem services, Limited substitutability, Project evaluation, Subsistence, Sustainability 1 2018 69 1 5 Environmental and Resource Economics 135 158 Q01 Q57 H43 D61 D90 http://link.springer.com/10.1007/s10640-016-0068-5 text/html Abstract Moritz A. Drupp Drupp@economics.uni-kiel.de University of Kiel London School of Economics and Political Science
oai:RePEc:kap:enreec:v:69:y:2018:i:1:d:10.1007_s10640-016-0069-42018-01-07RePEc:kap:enreec
article General Equilibrium Effects of Green Technological Progress Abstract This paper demonstrates that technological progress in production of renewable energy can influence the extraction path of fossil fuels indirectly by a change in the equilibrium interest rate. We show in a simple model that the indirect effect can be so strong that first-period or even aggregate extraction levels rise with green technological progress, contrary to popular expectations. Resource extraction, Technological progress, General equilibrium 1 2018 69 1 6 Environmental and Resource Economics 159 166 Q31 Q42 http://link.springer.com/10.1007/s10640-016-0069-4 text/html Abstract Ngo Long ngo.long@mcgill.ca McGill University Frank Stähler frank.staehler@uni-tuebingen.de University of Tübingen and CESifo
oai:RePEc:kap:enreec:v:69:y:2018:i:1:d:10.1007_s10640-016-0066-72018-01-07RePEc:kap:enreec
article General Equilibrium Tragedy of the Commons Abstract Many poor economies depend on open access resources for their livelihoods. Households in resource-based economies allocate their time and other factors between resource extraction and other activities. As a result, factors may shift from one sector to another as marginal returns change. This has two important implications. First, it implies potentially strong linkages between resource and non-resource sectors. Second, it means that unmanaged resources cause inefficient allocations of inputs across all sectors, and the effects of resource management spill into other sectors. We construct a local general equilibrium model that accounts for inputs that over-allocate to an open access resource and create a general equilibrium tragedy of the commons. This model describes resource rent dissipation more adequately in economies with mobile factors than a model with slowly dissipating rents. Perfectly mobile factors dissipate rent in every period, but endogenous wages cause labor and capital allocations to change with the resource stock. We use the model to illustrate medium-run impacts of a limit on capital in an artisanal fishery in Honduras. Simulation results reveal that fishery management has economy-wide impacts on prices and wages. Managers in developing countries thus should consider these linkages when implementing policies to conserve fish stocks. General equilibrium, Economic linkages, Open access natural resources, Artisanal fishery, Resource management 1 2018 69 1 3 Environmental and Resource Economics 75 101 http://link.springer.com/10.1007/s10640-016-0066-7 text/html Abstract Dale T. Manning dale.manning@colostate.edu Colorado State University J. Edward Taylor taylor@primal.ucdavis.edu University of California-Davis James E. Wilen wilen@primal.ucdavis.edu University of California-Davis
oai:RePEc:kap:enreec:v:69:y:2018:i:1:d:10.1007_s10640-016-0072-92018-01-07RePEc:kap:enreec
article Additionality When REDD Contracts Must be Self-Enforcing Abstract This paper examines self-enforcing contracts as a financial mechanism for reducing carbon emissions from deforestation and forest degradation when the opportunity cost of the land (i.e., landholder type) is private information and is imperfectly correlated over time (i.e., partially persistent types). Because self-enforcement limits the feasible incentives, the conservation levels are constrained by the surplus created. Regardless of the degree of persistence of such opportunity costs across contracting periods, a first-best self-enforcing contract can deliver “additional” carbon sequestration beyond the business as usual scenario only if the value of forest conservation is sufficiently high. Otherwise, self-enforcing contracts can induce some, suboptimal level of carbon sequestration. The degree of persistence of opportunity costs across periods does not affect the amount of total payments provided in the optimal menu of contracts, but greater persistence of opportunity cost types leads to contracts that feature more of the total payment as a bonus in contracts for landholders with a high opportunity cost for their land and more of the total payment as an upfront fixed payment for landholders with a low opportunity cost. Carbon sequestration, Climate change, Contracts, Development, Institutions, REDD, Self-enforcement 1 2018 69 1 8 Environmental and Resource Economics 195 215 D86 K12 L14 O12 Q54 Q56 http://link.springer.com/10.1007/s10640-016-0072-9 text/html Abstract Paula Cordero Salas paula@paulacordero.com The University of Alabama Brian E. Roe The Ohio State University Brent Sohngen The Ohio State University
oai:RePEc:kap:enreec:v:69:y:2018:i:1:d:10.1007_s10640-016-0067-62018-01-07RePEc:kap:enreec
article Fiscal Policy and $$\hbox {CO}_{2}$$ CO 2 Emissions of New Passenger Cars in the EU Abstract To what extent have national fiscal policies contributed to the decarbonisation of newly sold passenger cars? We construct a simple model that generates predictions regarding the effect of fiscal policies on average $$\hbox {CO}_{2}$$ CO 2 emissions of new cars, and then test the model empirically. Our empirical strategy combines a diverse series of data. First, we use a large database of vehicle-specific taxes in 15 EU countries over 2001–2010 to construct a measure for the vehicle registration and annual road tax levels, and separately, for the $$\hbox {CO}_{2}$$ CO 2 sensitivity of these taxes. We find that for many countries the fiscal policies have become more sensitive to $$\hbox {CO}_{2}$$ CO 2 emissions of new cars. We then use these constructed measures to estimate the effect of fiscal policies on the $$\hbox {CO}_{2}$$ CO 2 emissions of the new car fleet. The increased $$\hbox {CO}_{2}$$ CO 2 -sensitivity of registration taxes have reduced the $$\hbox {CO}_{2}$$ CO 2 emission intensity of the average new car by 1.3 %, partly through an induced increase of the share of diesel-fuelled cars by 6.5 percentage points. Higher fuel taxes lead to the purchase of more fuel efficient cars, but higher diesel fuel taxes also decrease the share of (more fuel efficient) diesel cars; higher annual road taxes have no or an adverse effect. Vehicle registration taxes, Fuel taxes, $$\hbox {CO}_{2}$$ CO 2 emissions 1 2018 69 1 4 Environmental and Resource Economics 103 134 H30 L62 Q48 Q54 Q58 R48 http://link.springer.com/10.1007/s10640-016-0067-6 text/html Abstract Reyer Gerlagh r.gerlagh@uvt.nl Tilburg University Inge Bijgaart Tilburg University University of Gothenburg Hans Nijland PBL Netherlands Environmental Assessment Agency Thomas Michielsen CPB Netherlands Bureau for Economic Policy Analysis
oai:RePEc:kap:enreec:v:69:y:2018:i:1:d:10.1007_s10640-016-0071-x2018-01-07RePEc:kap:enreec
article Aspects of Governance and $$\hbox {CO}_2$$ CO 2 Emissions: A Non-linear Panel Data Analysis Abstract The reduction of $$\hbox {CO}_2$$ CO 2 emissions has been at the centre of worldwide debates on environmental issues, though its inclusion as one of the millennium development goals (MDGs) by the United Nations has changed the focus of relative literature. Among many, one of the World Bank’s “recipes” to achieve a higher position toward MDGs has been to undertake reforms for a better governance. While, the majority of researches’ focus has been on one single aspect and its relationship with the environment, some studies, have simultaneously considered two governance dimensions. In this paper, we focus on the role of several aspects of governance on $$\hbox {CO}_2$$ CO 2 emissions. This provides us with a chance to explore the possible impacts of all aspects of governance on a more direct measure of emissions, that is different to previous researches which have focused on the indirect transmission and considered the maximum of two. Using the IV method within panel data analysis, we show that only one single aspect of governance, Control of Corruption, has a negative significant effect on $$\hbox {CO}_2$$ CO 2 emissions and its effect has a non-linear relationship. The non-linearity exists in both parametric and nonparametric analysis after controlling for endogeneity. $$\hbox {CO}_2$$ CO 2 emissions, Control of corruption, Nonparametric regression, Nonlinearity 1 2018 69 1 7 Environmental and Resource Economics 167 194 Q53 Q56 C26 C14 http://link.springer.com/10.1007/s10640-016-0071-x text/html Abstract Yashar Tarverdi yashar.tarverdi@curtin.edu.au Curtin University
oai:RePEc:kap:enreec:v:69:y:2018:i:1:d:10.1007_s10640-016-0064-92018-01-07RePEc:kap:enreec
article Impact of Spatial Differentiation of Nitrogen Taxes on French Farms’ Compliance Costs Abstract The spatial differentiation of input-based pollution fees should in theory decrease compliance costs in the case of nitrate pollution of water bodies from agriculture because both the damage and the compliance costs vary over space. However, the empirical evidence in the literature does not agree on the extent of the potential savings from differentiation. We address this issue in the case of France, using a mathematical programming model of agricultural supply (AROPAj). The modeling approach used accounts for the spatial diversity of nitrate pollution and the heterogeneity of farming systems. Our results reveal the efficiency gains from differentiating pollution fees among polluters and water bodies. For instance, firm-specific and water body-specific taxes represent respectively 5.8 and 32.5 % of farmers’ gross margin in terms of compliance costs, whereas a uniform policy at the river-basin district or national level leads to major economic losses and abandonment of the agricultural activity. These results stem from the lower tax rates faced by farmers in less polluted areas, for scenarios based on spatial differentiation. Our estimates suggest that realistic regulation via input-based pollution fees should be differentiated in order to significantly reduce the financial burden on farmers of conforming to predefined pollution levels. Some potential adverse effects related to input-based taxation and land use change call for additional fine-scale nitrogen pollution regulation (e.g. limitations on crop switching). Fertilizer, Livestock, Nitrate, Pollution, Scale, Tax, Water 1 2018 69 1 1 Environmental and Resource Economics 1 21 http://link.springer.com/10.1007/s10640-016-0064-9 text/html Abstract Anna Lungarska lungarska@gmail.com Université Paris-Saclay Pierre-Alain Jayet jayet@grignon.inra.fr Université Paris-Saclay
oai:RePEc:kap:enreec:v:69:y:2018:i:1:d:10.1007_s10640-016-0065-82018-01-07RePEc:kap:enreec
article The Effect of Emission Information on Housing Prices: Quasi-Experimental Evidence from the European Pollutant Release and Transfer Register Abstract In this paper, we study whether the release of pollutant emission information has an effect on housing prices. The event under study is the publication of the first wave of emission quantity data from the European Pollutant Release and Transfer Register in 2009. Our analysis is based on quarterly housing prices at the German postal code level for the years 2007–2011 and provides the first evidence from Europe on this research question. Estimating a differences-in-differences model and controlling for observable differences in land use, housing type distribution, tax revenues and other postal code area characteristics by means of propensity score matching, we find no significant effect of the release of emission information on the value of houses in affected postal code areas. This result survives a number of robustness checks designed to assess whether our findings are due to data aggregation issues or the actual treatment definition. This leads to the conclusion that on an aggregate level the 2009 publication of E-PRTR data did not have an immediate and noticeable effect on housing prices in Germany. Emissions information, E-PRTR, Housing market, Propensity score matching, Quasi-experiment 1 2018 69 1 2 Environmental and Resource Economics 23 74 http://link.springer.com/10.1007/s10640-016-0065-8 text/html Abstract Kathrine Graevenitz vongraevenitz@zew.de Centre for European Economic Research (ZEW) Daniel Römer roemer@zew.de Centre for European Economic Research (ZEW) Alexander Rohlf alexander.rohlf@gess.uni-mannheim.de University of Mannheim
oai:RePEc:kap:enreec:v::y::i::d:10.1007_s10640-020-00428-x2020-06-10RePEc:kap:enreec
article Welfare and Trade Effects of International Environmental Agreements Abstract We analyse the welfare effects of environmental policy arising from the formation of an international environmental agreement on the participating and non-participating countries and thus shed light on the potential incentives for a country to join such an agreement. Within a N-country Q-goods general equilibrium framework under free-trade conditions, we consider unilateral and cooperative policy settings and, within the latter, country-specific and fully harmonized policies within the agreement. A key result of the paper is the emergence of a negative relationship, arising from terms of trade effects, between the welfare changes of the participating and non-participating countries following the formation of the agreement. These however do not result in a zero sum welfare outcome for the world as a whole. International environmental agreements, Environmental taxation, International trade, Pareto efficiency, Pareto improving reforms, Climate change Environmental and Resource Economics 1 15 Q56 H23 F18 http://link.springer.com/10.1007/s10640-020-00428-x text/html Abstract Catia Montagna University of Aberdeen Avanti Nisha Pinto University of Brighton Nikolaos Vlassis nvlassis@abdn.ac.uk University of Aberdeen
oai:RePEc:kap:enreec:v:69:y:2018:i:2:d:10.1007_s10640-016-0078-32018-02-19RePEc:kap:enreec
article Improving Water Quality in an Iconic Estuary: An Internal Meta-analysis of Property Value Impacts Around the Chesapeake Bay Abstract This study conducts a meta-analysis and benefit transfer of the value of water clarity in the Chesapeake Bay estuary to estimate the property value impacts of pollution reduction policies. Estimates of the value of water clarity are derived from separate hedonic property value analyses of 14 counties bordering the Bay. The meta-analysis allows us to: (1) estimate the average effect of water clarity in the Chesapeake Bay, (2) investigate heterogeneity of effects across counties based on socioeconomic and ecological factors, (3) evaluate different measures of water clarity used in the original hedonic equations, and (4) transfer the values to Bayfront counties in nearby jurisdictions to estimate the property value impacts of the total maximum daily load (TMDL), a policy to reduce nutrient and sediment pollution entering the Bay that is expected to improve water clarity and ecological health. We also investigate the in-sample and out-of-sample predictive power of different transfer strategies and find that a simpler unit value transfer can outperform more complex function transfers. We estimate that aggregate near-waterfront property values could increase by roughly $400–$700 million in response to water clarity improvements from the TMDL. Meta-analysis, Benefit transfer, Water quality, Chesapeake Bay, Hedonic property value, Total Maximum Daily Load, TMDL 2 2018 69 2 3 Environmental and Resource Economics 265 292 Q51 Q53 Q57 http://link.springer.com/10.1007/s10640-016-0078-3 text/html Abstract Heather Klemick klemick.heather@epa.gov US Environmental Protection Agency Charles Griffiths US Environmental Protection Agency Dennis Guignet US Environmental Protection Agency Patrick Walsh Landcare Research
oai:RePEc:kap:enreec:v:69:y:2018:i:2:d:10.1007_s10640-017-0194-82018-02-19RePEc:kap:enreec
article Correction to: Water Hauling and Girls’ School Attendance: Some New Evidence from Ghana Abstract After publication of this article (Nauges and Strand, 2017) we have agreed that the name of Jon Strand should be removed because his contribution to the article was regarded by him as insufficient to warrant a listing as a co-author. 2 2018 69 2 13 Environmental and Resource Economics 447 447 http://link.springer.com/10.1007/s10640-017-0194-8 text/html Abstract Céline Nauges celine.nauges@toulouse.inra.fr Toulouse School of Economics (INRA-LERNA) The University of Queensland
oai:RePEc:kap:enreec:v:69:y:2018:i:2:d:10.1007_s10640-016-0084-52018-02-19RePEc:kap:enreec
article Effects of Voluntary Time-of-Use Pricing on Summer Electricity Usage of Business Customers Abstract Economic inefficiency can be caused by time-invariant retail electricity prices because they do not reflect variations in the cost of providing electricity during the day. Time-of-use (TOU) pricing—higher electricity prices during peak hours and lower electricity prices during off-peak hours—is by far the most common way to achieve more efficient levels of electricity consumption through reducing peak demand. The empirical evidence of the effectiveness of TOU pricing is sparse in the commercial and industrial sectors and there is no consensus in the literature on the statistical significance and magnitude of the effects. Applying a quasi-experimental design, this study evaluates an ongoing experiment of voluntary business TOU pricing plan by a major utility company in the Phoenix metropolitan area. Using the nearest-neighbor matching method, we identify control customers for the voluntary participants of the business TOU pricing. From difference-in-differences analysis, we find a statistically significant reduction in peak-hour electricity demand in response to the TOU pricing. We also find that there is no conservation effect, meaning that the total level of electricity consumption does not change under the TOU pricing. Time-of-use pricing, Business customers, Electricity, Matching, Difference-in-differences 2 2018 69 2 9 Environmental and Resource Economics 417 440 D22 L50 L94 Q41 http://link.springer.com/10.1007/s10640-016-0084-5 text/html Abstract Yueming Qiu yueming.qiu@asu.edu Arizona State University Loren Kirkeide Loren.Kirkeide@srpnet.com Salt River Project Yi David Wang dyiwang@uchicago.edu University of International Business and Economics
oai:RePEc:kap:enreec:v:69:y:2018:i:2:d:10.1007_s10640-016-0076-52018-02-19RePEc:kap:enreec
article Improved Methods for Predicting Property Prices in Hazard Prone Dynamic Markets Abstract Property prices are affected by changing market conditions, incomes and preferences of people. Price trends in natural hazard zones may shift significantly and abruptly after a disaster signalling structural systemic changes in property markets. It challenges accurate market assessments of property prices and capital at risk after major disasters. A rigorous prediction of property prices in this case should ideally be done based only on the most recent sales, which are likely to form a rather small dataset. Hedonic analysis has been long used to understand how various factors contribute to the housing price formation. Yet, the robustness of its assessment is undermined when the analysis needs to be performed on relatively small samples. The purpose of this study is to suggest a model that can be widely applicable and quickly calibrated in a changing environment. We systematically study four statistical models: starting from a typical standard hedonic function and gradually changing its functional specification by reducing the hedonic analysis to some basic property characteristics and applying kriging to control for neighbourhood effects. Across different sample sizes we find that the latter performs consistently better in the out-of-sample predictions than other traditional price prediction methods. We present the specific improvements to the traditional spatial hedonic model that enhance the model’s prediction accuracy. The improved model can be used to monitor price changes in risk-prone areas, accounting for changes in flood risk and at the same time controlling for autonomous market responses to flood risk. Hedonic analysis, Price prediction, Flood risk, Natural hazards, Kriging, Climate change, Small sample, Out-of-sample prediction 2 2018 69 2 2 Environmental and Resource Economics 247 263 http://link.springer.com/10.1007/s10640-016-0076-5 text/html Abstract Koen Koning k.dekoning@utwente.nl University of Twente Tatiana Filatova t.filatova@utwente.nl University of Twente Okmyung Bin BINO@ecu.edu East Carolina University
oai:RePEc:kap:enreec:v:69:y:2018:i:2:d:10.1007_s10640-016-0075-62018-02-19RePEc:kap:enreec
article Endogeneity of Risk Perceptions in Averting Behavior Models Abstract This paper examines the relationship between averting expenditures / choices and perceived health risks. Models in the literature often employ risk perceptions as explanatory variables without addressing the potential endogeneity of the perceived risk. We examine the implications of ignoring endogeneity in this context, using an application to both drinking water choices and expenditures and perceived health risks. Our data are from an Internet-based cross-Canada survey that employs a novel interactive risk ladder to elicit mortality risk perceptions relating to water. We employ two fundamentally different methods to assess the impact of risk perceptions on behavior: an analysis of expenditures on alternate water sources and a model of proportional choice of water sources. Results suggest the presence of averting behavior with respect to perceived mortality risks and that the estimated effect of water risks is greater than 3 times higher when using approaches that correct for endogeneity compared to models that do not. Averting behavior, Risk perceptions, Water quality, Human health, Latent class models, Expenditure model, Endogeneity 2 2018 69 2 1 Environmental and Resource Economics 217 246 Q51 Q53 I12 http://link.springer.com/10.1007/s10640-016-0075-6 text/html Abstract Patrick Lloyd-Smith lloydsmi@ualberta.ca University of Alberta Craig Schram University of Alberta Wiktor Adamowicz University of Alberta Diane Dupont Brock University
oai:RePEc:kap:enreec:v:69:y:2018:i:2:d:10.1007_s10640-016-0081-82018-02-19RePEc:kap:enreec
article The Impacts of Alternative Policy Instruments on Environmental Performance: A Firm Level Study of Temporary and Persistent Effects Abstract Using a rich Norwegian panel data set that includes information about environmental regulations such as environmental taxes, non-tradable emission quotas and technology standards, all kinds of polluting emissions, and a large number of control variables, we analyze the effects of direct and indirect environmental regulations on environmental performance. We identify positive and significant effects of both direct and indirect policy instruments. Moreover, we test whether the two types of regulations lead to positive and persistent effects on environmental performance. We find evidence that direct regulations promote such effects. Indirect regulations, on the other hand, will only have potential persistent effects if environmental taxes are increasing over time. Emission intensity, Environmental performance, Environmental regulation, Command-and-control, Environmental taxes, Long-term effects 2 2018 69 2 5 Environmental and Resource Economics 317 341 C01 C23 D04 D22 H23 L51 Q51 Q58 http://link.springer.com/10.1007/s10640-016-0081-8 text/html Abstract Brita Bye Brita.Bye@ssb.no Statistics Norway Marit E. Klemetsen MaritElisabeth.Klemetsen@skatteetaten.no Statistics Norway University of Oslo
oai:RePEc:kap:enreec:v:69:y:2018:i:2:d:10.1007_s10640-017-0116-92018-02-19RePEc:kap:enreec
article Erratum to: Will Technological Change Save the World? The Rebound Effect in International Transfers of Technology 2 2018 69 2 12 Environmental and Resource Economics 445 445 http://link.springer.com/10.1007/s10640-017-0116-9 text/html Abstract Mare Sarr mare.sarr@uct.ac.za University of Cape Town Tim Swanson tim.swanson@graduateinstitute.ch Graduate Institute of International and Development Studies
oai:RePEc:kap:enreec:v:69:y:2018:i:2:d:10.1007_s10640-016-0100-92018-02-19RePEc:kap:enreec
article Erratum to: The Effect of Emission Information on Housing Prices: Quasi-Experimental Evidence from the European Pollutant Release and Transfer Register 2 2018 69 2 11 Environmental and Resource Economics 443 444 http://link.springer.com/10.1007/s10640-016-0100-9 text/html Abstract Kathrine Graevenitz vongraevenitz@zew.de Centre for European Economic Research (ZEW) Daniel Römer roemer@zew.de Centre for European Economic Research (ZEW) Alexander Rohlf alexander.rohlf@gess.uni-mannheim.de University of Mannheim
oai:RePEc:kap:enreec:v:69:y:2018:i:2:d:10.1007_s10640-016-0104-52018-02-19RePEc:kap:enreec
article Climate Engineering and Abatement: A ‘flat’ Relationship Under Uncertainty Abstract The potential of climate engineering to substitute or complement abatement of greenhouse gas emissions has been increasingly debated over the last years. The scientific assessment is driven to a large extent by assumptions regarding its effectiveness, costs, and impacts, all of which are profoundly uncertain. We investigate how this uncertainty about climate engineering affects the optimal abatement policy in the near term. Using a two period model of optimal climate policy under uncertainty, we show that although abatement decreases in the probability of success of climate engineering, this relationship is concave implying a rather ‘flat’ level of abatement as the probability of climate engineering becomes a viable policy option. Using a stochastic version of an integrated assessment model, the results are found to be robust to a wide range of specifications. Moreover, we numerically evaluate different correlation structures between climate engineering and the equilibrium climate sensitivity. Climate engineering, Mitigation, Climate change, Uncertainty, Solar radiation management, Geoengineering 2 2018 69 2 8 Environmental and Resource Economics 395 415 http://link.springer.com/10.1007/s10640-016-0104-5 text/html Abstract Johannes Emmerling johannes.emmerling@feem.it Fondazione Eni Enrico Mattei (FEEM) and Centro-Euro Mediterraneo per i Cambiamenti Climatici (CMCC) Massimo Tavoni massimo.tavoni@feem.it Fondazione Eni Enrico Mattei (FEEM) and Centro-Euro Mediterraneo per i Cambiamenti Climatici (CMCC) Politecnico di Milano
oai:RePEc:kap:enreec:v:69:y:2018:i:2:d:10.1007_s10640-016-0083-62018-02-19RePEc:kap:enreec
article Single-Choice, Repeated-Choice, and Best-Worst Scaling Elicitation Formats: Do Results Differ and by How Much? Abstract This paper presents what we believe to be the most comprehensive suite of comparison criteria regarding multinomial discrete-choice experiment elicitation formats to date. We administer a choice experiment focused on ecosystem-service valuation to three independent samples: single-choice, repeated-choice, and best-worst scaling elicitation. We test whether results differ by parameter estimates, scale factors, preference heterogeneity, status-quo effects, attribute non-attendance, and magnitude and precision of welfare measures. Overall, we find limited evidence of differences in attribute parameter estimates, scale factors, and attribute increment values across elicitation treatments. However, we find significant differences in status-quo effects across elicitation treatments, with repeated-choice resulting in greater proportions of “action” votes, and consequently, higher program-level welfare estimates. Also, we find that single-choice yields drastically less-precise welfare estimates. Finally, we find some differences in attribute non-attendance behavior across elicitation formats, although there appears to be little consistency in class shares even within a given elicitation treatment. Best-worst scaling, Choice experiment, Contingent valuation, Ecosystem-service valuation, Stated preference, Survey, Willingness to pay 2 2018 69 2 7 Environmental and Resource Economics 365 393 http://link.springer.com/10.1007/s10640-016-0083-6 text/html Abstract Daniel R. Petrolia d.petrolia@msstate.edu Mississippi State University Matthew G. Interis m.interis@msstate.edu Mississippi State University Joonghyun Hwang joonghyun.hwang@myfwc.com Florida Fish and Wildlife Conservation Commission
oai:RePEc:kap:enreec:v:69:y:2018:i:2:d:10.1007_s10640-016-0082-72018-02-19RePEc:kap:enreec
article Limit Cycles Under a Negative Effect of Pollution on Consumption Demand: The Role of an Environmental Kuznets Curve Abstract Since Heal (Explorations in natural resource economics. The Johns Hopkins University Press for Resources for the Future, Baltimore, 1982), there is a theoretical consensus about the occurrence of limit cycles (through a Hopf bifurcation) under a positive effect of pollution on consumption demand (compensation effect) and about the impossibility under a negative effect (distaste effect). However, recent empirical evidence advocates for the relevance of distaste effects. Our paper challenges the conventional view on the theoretical ground and reconciles theory and evidence. The environmental Kuznets curve (EKC) (pollution first increases in the capital level then decreases) plays the main role. Indeed, the standard case à la Heal (limit cycles only under a compensation effect) only works along the upward-sloping branch of the curve while the opposite (limit cycles only under a distaste effect) holds along the downward-sloping branch. Welfare effects of taxation also change according to the slope of the EKC. Pollution, Environmental Kuznets curve, Hopf bifurcation, Ramsey model 2 2018 69 2 6 Environmental and Resource Economics 343 363 E32 O44 http://link.springer.com/10.1007/s10640-016-0082-7 text/html Abstract Stefano Bosi sbosi@univ-evry.fr University of Evry David Desmarchelier david.desmarchelier@gmail.com University of Lorraine
oai:RePEc:kap:enreec:v:69:y:2018:i:2:d:10.1007_s10640-016-0079-22018-02-19RePEc:kap:enreec
article Electricity Price Increase in Texas: What is the Role of RPS? Abstract Over the last two decades, more than half of the states in the United States have adopted a renewable portfolio standard (RPS). While vital environmental goals underlie the rationale for RPS there is a rising concern that the policy may lead to increased electricity prices. Using the synthetic control method we conduct a comparative case study of Texas, an early adopter of RPS and arguably a success story. Our statistical tests find no evidence that RPS was a contributing factor in Texas’s electricity price increase. Renewable portfolio standard (RPS), Electricity price, Synthetic control method (SCM) 2 2018 69 2 4 Environmental and Resource Economics 293 316 Q4 Q42 Q48 H7 http://link.springer.com/10.1007/s10640-016-0079-2 text/html Abstract Karen Maguire karen.maguire@okstate.edu Oklahoma State University Abdul Munasib Abdul.Munasib@bea.gov Bureau of Economic Analysis, U.S. Department of Commerce
oai:RePEc:kap:enreec:v:69:y:2018:i:2:d:10.1007_s10640-016-0073-82018-02-19RePEc:kap:enreec
article Erratum to: Auctioning Risky Conservation Contracts 2 2018 69 2 10 Environmental and Resource Economics 441 441 http://link.springer.com/10.1007/s10640-016-0073-8 text/html Abstract Bruno Wichmann bwichmann@ualberta.ca University of Alberta Peter Boxall pboxall@ualberta.ca University of Alberta Scott Wilson scott.wilson@ualberta.ca University of Alberta Orsolya Perger operger@ualberta.ca University of Alberta
oai:RePEc:kap:enreec:v::y::i::d:10.1007_s10640-020-00435-y2020-06-18RePEc:kap:enreec
article Obituary: Karl-Göran Mäler Environmental and Resource Economics 1 6 http://link.springer.com/10.1007/s10640-020-00435-y text/html Abstract Anastasios Xepapadeas xepapad@aueb.gr Athens University of Economics and Business University of Bologna Aart Zeeuw A.J.deZeeuw@uvt.nl Tilburg University The Beijer Institute
oai:RePEc:kap:enreec:v::y::i::d:10.1007_s10640-020-00437-w2020-06-18RePEc:kap:enreec
article Greening the Post-pandemic Recovery in the G20 Abstract Rebuilding G20 economies after the COVID-19 pandemic requires rethinking what type of economy we need and want in the future. Simply reviving the existing ‘brown’ economy will exacerbate irreversible climate change and other environmental risks. For G20 economies, investing in a workable and affordable green transition is essential. A good place to start is learning what worked and what did not from previous efforts to green the economic recovery during the 2008–2009 Great Recession, examining the cases of the United States and South Korea. Policies for a sustained economic recovery amount to much more than just short-term fiscal stimulus. Transitioning from fossil fuels to a sustainable low-carbon economy will require long-term commitments (5–10 years) of public spending and pricing reforms. The priorities for public spending include support for private sector green innovation and infrastructure, development of smart grids, transport systems, charging station networks, and sustainable cities. Pricing carbon and pollution, and removing fossil-fuel subsidies, can accelerate the transition, raise revenues for the necessary public investments, and lower the overall cost of the green transition. Carbon pricing, Clean energy, COVID-19, G20 economies, Green economy, Green New Deal Environmental and Resource Economics 1 19 http://link.springer.com/10.1007/s10640-020-00437-w text/html Abstract Edward B. Barbier Edward.barbier@colostate.edu Colorado State University
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article Human Development at Risk: Economic Growth with Pollution-Induced Health Shocks Abstract Risks to human health stemming from polluted air, water, and soil are substantial, especially in the rapidly growing economies. The present paper develops a theoretical framework to study an endogenously growing economy which is subject to pollution-induced health shocks with the health status being an argument of the welfare function. Pollution, arising as a negative externality from production, adversely and randomly affects the regeneration ability of a human body leading to a decline in the overall health status of the population. We include two types of uncertainty surrounding the health status: continuous small-scale fluctuations, driven by the Wiener process, and large-scale shocks or epidemics, driven by the Poisson process. We derive closed-form analytical solutions for the optimal abatement policy and the growth rate of consumption. Devoting a constant fraction of output to emissions abatement delivers the first-best allocation. This fraction is an increasing function of total factor productivity, polluting intensity of production, and damage intensity of both continuous and jump-type shocks. A higher frequency of jumps also calls for more vigorous abatement policies. By contrast, the optimal growth rate of the economy is decreasing in the frequency and intensity of shocks and in the polluting intensity of output. The efficiency of abatement technology has, in general, an ambiguous bearing on both the growth rate and on the abatement share due to the opposing forces of the direct and indirect effects. Health shocks, Uncertainty, Pollution, Endogenous growth 3 2017 66 3 5 Environmental and Resource Economics 481 495 Q54 I15 O44 D81 http://link.springer.com/10.1007/s10640-016-0089-0 text/html Abstract Lucas Bretschger lbretschger@ethz.ch Center of Economic Research, CER-ETH Alexandra Vinogradova avinogradova@ethz.ch Center of Economic Research, CER-ETH
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article Second-Best Renewable Subsidies to De-carbonize the Economy: Commitment and the Green Paradox Abstract Climate change must deal with two market failures: global warming and learning by doing in renewable energy production. The first-best policy consists of an aggressive renewables subsidy in the near term and a gradually rising and falling carbon tax. Given that global carbon taxes remain elusive, policy makers might have to rely on a second-best subsidy only. With credible commitment the second-best subsidy is higher than the social benefit of learning to cut the transition time and peak warming close to first-best levels at the cost of higher fossil fuel use in the short run (weak Green Paradox). Without commitment the second-best subsidy is set to the social benefit of learning. It generates smaller weak Green Paradox effects, but the transition to the carbon-free takes longer and cumulative carbon emissions are higher. Under first best and second best with pre-commitment peak warming is 2.1–2.3 $$^{\circ }$$ ∘ C, under second best without commitment 3.5 $$^{\circ }$$ ∘ C, and without any policy 5.1 $$^{\circ }$$ ∘ C above pre-industrial levels. Not being able to commit yields a welfare loss of 95% of initial GDP compared to first best. Being able to commit brings this figure down to 7%. First best, Second best, Commitment, Markov-perfect, Ramsey growth, Carbon tax, Renewables subsidy, Learning by doing, Directed technical change 3 2017 66 3 2 Environmental and Resource Economics 409 434 H21 Q51 Q54 http://link.springer.com/10.1007/s10640-016-0086-3 text/html Abstract Armon Rezai armon.rezai@wu.ac.at Vienna University of Economics and Business IIASA WIIW Frederick Ploeg rick.vanderploeg@economics.ox.ac.uk Oxford University State University of St. Petersburg VU University Amsterdam
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article Climate Policy with Tied Hands: Optimal Resource Taxation Under Implementation Lags Abstract In the presence of implementation lags, announced Pigouvian taxation leads to fossil fuel prices that are too low from society’s perspective. This results in excessive emissions and reduced incentives for green innovation. Such effects are compounded by the presence of pre-existing subsidies to fossil fuel use. We show that the intertemporal resource tax path may need to be modified to optimally take into account the perverse incentives from policy lags and pre-existing policies. We find that it might be optimal to subsidize, rather than tax resource extraction at the instant of implementation. Climate policy, Second-best, Carbon tax, Non-renewable resources, Resource taxation, Implementation lag, Green Paradox 3 2017 66 3 7 Environmental and Resource Economics 537 551 Q31 Q41 Q54 Q58 http://link.springer.com/10.1007/s10640-016-0091-6 text/html Abstract Corrado Di Maria c.di-maria@uea.ac.uk University of East Anglia Sjak Smulders j.a.smulders@tilburguniversity.edu Tilburg University Edwin Werf edwin.vanderwerf@wur.nl Wageningen University
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article The Incentives for North-South Transfer of Climate-Mitigation Technologies with Trade in Polluting Goods 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 has no incentive to share its technology either before or after the agreement. Technology transfer commitments may be included in the agreement, but with no effect on global emissions and global surplus. The only impacts are distributional, technology transfers and side payments may be substitute instruments. Technology transfer, Imperfect competition, Climate policy, Environmental cooperation, Cap and trade 3 2017 66 3 3 Environmental and Resource Economics 435 456 D43 F18 Q5 http://link.springer.com/10.1007/s10640-016-0087-2 text/html Abstract Matthieu Glachant CERNA-Centre for Industrial Economics Julie Ing ingj@ethz.ch Center of Economic Research at ETH Zurich Jean Philippe Nicolai jnicolai@ethz.ch Chair of Integrative Risk Management and Economics at ETH Zurich
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article Will Technological Change Save the World? The Rebound Effect in International Transfers of Technology Abstract Technological change and its transfer to developing countries is often portrayed by policy-makers as a critical part of the solution to a resource problem such as climate change, based on the assumption that the transfer of resource-conserving technologies to developing countries will result in reduced use of natural capital by those countries. We demonstrate here, in a capital conversion based model of development, that the free transfer of resource-conserving technologies to developing countries will increase the options available to those countries, but that the way that they expend these options need not be in the direction of conserving resources. This is another example of the potential for a rebound effect to determine ultimate outcomes, here in the context of international technology transfer policy. The transfer of technologies is as likely to simply move developing countries more rapidly down the same development path as it is to alter the choices they make along that path. For this reason, the transfer of resource-conserving technologies, without incentives provided to alter development priorities, may not result in any resource-conservation at all. Technological change, Rebound effect, Development path 3 2017 66 3 9 Environmental and Resource Economics 577 604 O33 O39 O44 Q55 Q56 http://link.springer.com/10.1007/s10640-016-0093-4 text/html Abstract Mare Sarr mare.sarr@uct.ac.za University of Cape Town Tim Swanson tim.swanson@graduateinstitute.ch Graduate Institute of International and Development Studies
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article Environmental Protection for Sale: Strategic Green Industrial Policy and Climate Finance Abstract Industrial policy has long been criticized as subject to protectionist interests; accordingly, subsidies to domestic producers face disciplines under World Trade Organization agreements, without exceptions for environmental purposes. Now green industrial policy is gaining popularity as governments search for low-carbon solutions that also provide jobs at home. The strategic trade literature has largely ignored the issue of market failures related to green goods. I consider the market for a new environmental good (like low-carbon technology) whose downstream consumption provides external benefits (like reduced emissions). Governments may have some preference for supporting domestic production, such as by interest-group lobbying, introducing a political distortion in their objective function. I examine the national incentives and global rationales for offering production (upstream) and deployment (downstream) subsidies in producer countries, allowing that some of the downstream market may lie in nonregulating third-party countries. Restraints on upstream subsidies erode global welfare when environmental externalities are large enough relative to political distortions. Climate finance is an effective alternative if political distortions are large and governments do not undervalue carbon costs. Numerical simulations of the case of renewable energy indicate that a modest social cost of carbon can imply benefits from allowing upstream subsidies. Green industrial policy, Emissions leakage, Externalities, International trade, Renewable energy, Subsidies 3 2017 66 3 8 Environmental and Resource Economics 553 575 F13 F18 H21 Q5 http://link.springer.com/10.1007/s10640-016-0092-5 text/html Abstract Carolyn Fischer fischer@rff.org Resources for the Future Fondazione Eni Enrico Mattei (FEEM) CESifo Research Network
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article Enforcement of Intellectual Property, Pollution Abatement, and Directed Technical Change Abstract We theoretically investigate the interaction between endogenous enforcement of intellectual property rights (IPRs) and tax-financed pollution abatement measures. IPRs affect dirty and clean intermediates alike such that higher IPR enforcement may promote the transition to the clean technology, if this technology is productive enough. If the green technology is relatively unproductive, higher IPRs promote the dirty technology while pollution is increasing. As households are due to subsistence consumption subject to a hierarchy of needs, the level of IPR enforcement as well as the level of abatement measures depends on the state of technology and is increasing during economic development. Thus, if the incentive to enforce IPRs is low the level of abatement measures is also low. This argument provides a theoretical foundation for the observed clash of interests in international negotiation rounds regarding the harmonization of IPR protection and actions to combat climate change. Directed technical change, Intellectual property rights, Pollution 3 2017 66 3 4 Environmental and Resource Economics 457 480 O30 O33 O34 Q53 Q54 Q56 Q58 http://link.springer.com/10.1007/s10640-016-0088-1 text/html Abstract Andreas Schaefer aschaefer@ethz.ch CER-ETH, Center of Economic Research at ETH Zurich
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article Innovation, Diffusion, Growth and the Environment: Taking Stock and Charting New Directions Abstract The objective of this article is to provide a succinct review of the main developments in the field of research on the economics of growth, innovation, diffusion and the environment. We focus on the last fifteen to twenty years of scientific advances in the field as this corresponds to: (i) the consensus on the theoretical side on endogenous economic growth modelling, and (ii) the growing empirical work on innovation and diffusion due to the development of patent data. As very good reviews already exist in the literature, we only provide a brief and non-exhaustive discussion aiming at taking stock of some recent developments and charting new issues for a future research agenda. Technological change, Innovation, Diffusion, Growth, Patents 3 2017 66 3 1 Environmental and Resource Economics 393 407 O33 O34 Q55 http://link.springer.com/10.1007/s10640-016-0085-4 text/html Abstract Mare Sarr mare.sarr@uct.ac.za University of Cape Town Joëlle Noailly joelle.noailly@graduateinstitute.ch Graduate Institute of International and Development Studies
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article Environmental Policy and the International Diffusion of Cleaner Energy Technologies Abstract Technology transfer is an important channel of technological change and sustainable development for countries with less innovative ability than technological leaders. This paper studies whether domestic environmental policies affect the inward technology transfer of cleaner innovation from abroad. We focus specifically on the power sector, for its important role in the decarbonization process, by looking at zero-carbon (renewable) and carbon-saving (efficient fossil) technologies for energy production. Using data on cross-country patent applications, we provide evidence that environmental policy contributes to attracting foreign cleaner technology options to OECD markets but not to non-OECD markets. We show that this is due to the nature of the implemented policy instruments. Market-based approaches positively impact technology transfer to both OECD and non-OECD economies, while non-market based approaches have at best only a weak effect in OECD countries. Domestic environmental policies may provide too weak a signal for foreign innovators in countries off the technological frontier. This calls for a strengthening of policy incentives for technology transfer in light of pressing climate change objectives. Technology transfer, Patents, Energy technologies, Environmental policy 3 2017 66 3 6 Environmental and Resource Economics 497 536 O33 O34 Q55 http://link.springer.com/10.1007/s10640-016-0090-7 text/html Abstract Elena Verdolini elena.verdolini@feem.it FEEM - Fondazione Eni Enrico Mattei - and Fondazione CMCC - Centro Euro-Mediterranneo sui Cambiamenti Climatici Valentina Bosetti FEEM - Fondazione Eni Enrico Mattei - and Fondazione CMCC - Centro Euro-Mediterranneo sui Cambiamenti Climatici Bocconi University
oai:RePEc:kap:enreec:v:72:y:2019:i:3:d:10.1007_s10640-018-0221-42019-03-07RePEc:kap:enreec
article Harvesting the Commons Abstract We study a socio-ecological model in which a continuum of consumers harvest a common property renewable natural resource. Markov perfect Nash equilibria of the corresponding non-cooperative game are derived and are compared with collectively optimal harvesting policies. The underlying mechanisms that drive open-access commons in our model are shaped by population size, harvesting costs, and the ecosystem’s productivity. If other things equal population is small relative to harvesting costs, unmanaged commons do not face destruction. More strikingly, they are harvested at the collectively optimal rate. Property rights do not matter in that parametric regime because the resource has no social scarcity value. However, if other things equal population is large relative to harvesting costs, open-access renewable natural resources suffer from the tragedy of the commons. Property rights matter there because the resource has a social scarcity price. The population size relative to harvesting costs at which the socio-ecological system bifurcates is an increasing function of the ecosystem’s productivity. A sudden crash in productivity, population overshoot, or decline in harvesting costs can tip an unmanaged common into ruin. The model provides a way to interpret historical and archaeological findings on the collapse of those societies that have been studied by scholars. Tragedy of the commons, Renewable resource, Intrinsic growth rate of resource, Human population growth, Cost of harvesting, Markov perfect Nash equilibrium 3 2019 72 3 2 Environmental and Resource Economics 613 636 C73 Q20 http://link.springer.com/10.1007/s10640-018-0221-4 text/html Abstract Partha Dasgupta pd10000@cam.ac.uk University of Cambridge Tapan Mitra tm19@cornell.edu Cornell University Gerhard Sorger gerhard.sorger@univie.ac.at University of Vienna
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article Is Social Capital Green? Cultural Features and Environmental Performance in the European Union Abstract This paper analyses the relationship between social capital and environmental performance in the European Union. In a first stage, environmental performance is measured by an index of eco-efficiency at the country level, computed using data envelopment analysis techniques and data for the year 2013. In a second stage, the influence of social capital and other relevant control variables on eco-efficiency is assessed by means of truncated regressions and bootstrapping, as proposed by Simar and Wilson (J Econom 136(1):31–64, 2007). For several model specifications, tests fail to reject the hypothesis of no effect of social capital on environmental performance, and the main driver of environmental performance is found to be the level of economic development, measured by GDP per capita. Furthermore, this result is robust to different definitions of social capital and sample periods. Environmental performance, European Union, Social capital 3 2019 72 3 8 Environmental and Resource Economics 795 822 C61 Q5 Z10 http://link.springer.com/10.1007/s10640-018-0226-z text/html Abstract Jesús Peiró-Palomino peiroj@uji.es University Jaume I Andrés J. Picazo-Tadeo University of Valencia
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article The Signaling Effect of Emission Taxes Under International Duopoly Abstract We analyze equilibrium emission taxes under international Cournot duopoly in the presence of asymmetric information between firms. When each firm does not know the production cost of its rival located in the other country, the government of each country can use its emission tax as a signal of the competitiveness of its domestic firm. We show that, owing to this signaling effect, the equilibrium emission tax and expected welfare of each country can be higher than those under symmetric information between firms or even higher than those obtained if the governments were to non-strategically set the tax rate equal to the (expected) marginal damage from pollution (i.e., the Pigouvian tax level). Our results suggest that the presence of asymmetric information between firms can mitigate a “race to the bottom” in strategic environmental policymaking. Strategic environmental policy, Emission taxes, Signaling, Cournot duopoly, Race to the bottom 3 2019 72 3 5 Environmental and Resource Economics 691 720 F12 F18 D82 http://link.springer.com/10.1007/s10640-018-0220-5 text/html Abstract Akira Miyaoka miyaoka-akira-ns@alumni.osaka-u.ac.jp Kansai University
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article Waste Not: Can Household Biogas Deliver Sustainable Development? Abstract Household biogas systems are a renewable energy technology with the potential to provide sustainable development benefits by reducing pressure on forest stocks and by shifting household time allocation towards higher value activities or long-term investments in human capital. We estimate the environmental and socioeconomic impacts of biogas expansion in Nepal using an instrumental variables approach that exploits conditional variation in access to biogas installation companies. We confirm prior evidence that biogas use significantly reduces collected fuelwood, estimating changes of approximately 800–2000 kg per year per household. We find new evidence that biogas saves time in fuelwood collection (23–47%), and results in reallocation of time away from home production and wage labor towards agricultural labor and education. We find that biogas reduced forest cover loss in the Hill region and when combined with other forest protection policies. Together the results suggest that biogas can contribute modestly to sustainable development, particularly in combination with complimentary opportunities or policies. Deforestation, Double dividend, Environment, Renewable energy technology, Sustainable development, Time use 3 2019 72 3 7 Environmental and Resource Economics 763 794 O13 O15 Q42 Q56 Q58 http://link.springer.com/10.1007/s10640-018-0224-1 text/html Abstract Robyn Meeks robyn.meeks@duke.edu Duke University Katharine R. E. Sims ksims@amherst.edu Amherst College Hope Thompson University of Michigan
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article Correction to: Coaseian Biodiversity Conservation and Market Power This erratum corrects an error in that part of the article, which relates to the exertion of market power. 3 2019 72 3 11 Environmental and Resource Economics 875 876 http://link.springer.com/10.1007/s10640-018-0232-1 text/html Abstract Thomas Eichner thomas.eichner@fernuni-hagen.de University of Hagen Rüdiger Pethig pethig@vwl.wiwi.uni-siegen.de University of Siegen
oai:RePEc:kap:enreec:v:72:y:2019:i:3:d:10.1007_s10640-018-0217-02019-03-07RePEc:kap:enreec
article Price Effects, Inefficient Environmental Policy, and Windfall Profits Abstract We examine conditions under which a new or tighter restriction on emissions from a competitive polluting industry creates price effects in adjacent markets. Price effects may arise when a quantity restriction on emissions causes output to fall and, therefore, output price to rise. They may also arise when the required reduction in output causes the price of a polluting input to fall. We model emissions as a fixed proportion of output, limiting the possibilities for input substitutions. The possibility of price effects exists whenever the set of regulated firms is large relative to its input or output markets, a possibility that is expressly ruled out in Montgomery’s (J Econ Theory 5:395–418, 1972) paper. Two potential implications of price effects are explored. One is an efficiency concern: a welfare-maximizing regulator who neglects price effects will require more than the optimal level of abatement. The other is a distributional concern: an emissions restriction might create windfall profits for the polluting industry. Environmental policy, Windfall profits, Price effects 3 2019 72 3 3 Environmental and Resource Economics 637 656 http://link.springer.com/10.1007/s10640-018-0217-0 text/html Abstract Jay S. Coggins University of Minnesota Andrew L. Goodkind agoodkind@unm.edu University of New Mexico Jason Nguyen University of Minnesota Zhiyu Wang National University of Singapore
oai:RePEc:kap:enreec:v:72:y:2019:i:3:d:10.1007_s10640-018-0228-x2019-03-07RePEc:kap:enreec
article Willingness to Pay to Avoid Water Restrictions in Australia Under a Changing Climate Abstract Mandatory water use restrictions have become a common feature of the urban water management landscape in countries like Australia. Water restrictions limit how water can be used and their impacts have often been enumerated by using stated preference techniques, like contingent valuation. Most interest in these studies emerged in times of drought, when the severity of restrictions and their deployment had increased and water managers contemplate supply augmentation measures. A question thus arises as to whether the same estimates can be legitimately deployed to water supply projects undertaken when water is more plentiful. This study sheds light on the impact on estimates of willingness to pay when the climatic backdrop to a contingent valuation experiment is altered. We report the results of a comparison between two surveys, undertaken in 2008 and 2012, using a common multiple-bounded discrete choice contingent valuation design, administered across six cities in Australia, covering metropolitan and regional settings. Using a finite mixture, scaled ordered probit model we investigate changes over time in willingness to pay by city, and also causes of individual heterogeneity in willingness to pay. We find that willingness to pay estimates significantly change over time in most regional centres but this is not the case for the major cities of Sydney and Melbourne, once changes in housing prices are included in the analysis. Contingent valuation, Urban water restrictions, Framing effects 3 2019 72 3 9 Environmental and Resource Economics 823 847 http://link.springer.com/10.1007/s10640-018-0228-x text/html Abstract Bethany Cooper bethany.cooper@unisa.edu.au University of South Australia Michael Burton University of Manchester University of Western Australia Lin Crase University of South Australia
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article Coaseian Biodiversity Conservation and Market Power Abstract We apply a land-use approach to biodiversity conservation (BC) by assuming that the global public good ‘biodiversity’ is positively correlated with the share of land protected by land-use restrictions against the deterioration of habitats, ecosystems, and biodiversity. The willingness to pay for BC is positive in developed countries (North), but very low in developing countries (South). Taking the no-policy regime as our point of departure, we analyze two concepts of BC: the northern countries’ financial support of BC in the South, and the coordination of northern countries’ BC efforts. In each regime, governments may either take prices as given or may act strategically by seeking to manipulate the terms of trade in their favor. Our numerical analysis yields results with unexpected policy implications. If northern countries support BC financially in the South without coordinating their actions, the protected land, biodiversity and welfare increase so slightly that this BC policy is almost ineffective. The BC concept with a Coaseian flavor—in which northern countries support BC financially in the South and coordinate their action—is efficient if governments act non-strategically. Otherwise, the concept is an ineffective BC policy instrument, because the incentives for expanding the protected land the BC policy creates are so strong that biodiversity actually becomes excessive. Biodiversity, Conservation, Protected areas, Developing countries 3 2019 72 3 10 Environmental and Resource Economics 849 873 Q15 Q57 Q58 http://link.springer.com/10.1007/s10640-018-0225-0 text/html Abstract Thomas Eichner thomas.eichner@fernuni-hagen.de University of Hagen Rüdiger Pethig pethig@vwl.wiwi.uni-siegen.de University of Siegen
oai:RePEc:kap:enreec:v:72:y:2019:i:3:d:10.1007_s10640-018-0218-z2019-03-07RePEc:kap:enreec
article Modeling Distance Decay Within Valuation Meta-Analysis Abstract Environmental benefit transfers increasingly rely on welfare estimates generated using meta-regression models (MRMs) of non-market willingness to pay (WTP). Theory and intuition suggest that these estimates should generally be sensitive to spatial dimensions. A common spatial pattern found in primary valuation studies is distance decay, in which WTP for environmental improvements diminishes as a function of distance to affected areas. Despite the potential importance of distance decay for benefit transfer accuracy, no valuation MRM in the published literature has developed an explicit mechanism to account for it. This paper outlines an approach to model the systematic effect of distance within valuation MRMs. The approach is illustrated using a meta-analysis of WTP for quality improvements in US water bodies. The metadata are drawn from stated preference studies that estimate per household WTP for water quality changes, and combine primary study information with external geospatial data. Results demonstrate statistically significant and intuitive influences of distance and other spatial factors on WTP. The resulting benefit transfers are more accurate than otherwise identical transfers that cannot account for spatial variations. Non-market valuation, Benefit transfer, Benefits transfer, Meta-regression model, Spatial, Nonuse value, Proximity, Water quality, Willingness to pay 3 2019 72 3 4 Environmental and Resource Economics 657 690 Q51 Q25 Q53 http://link.springer.com/10.1007/s10640-018-0218-z text/html Abstract Robert J. Johnston rjohnston@clarku.edu Clark University Elena Y. Besedin elena.besedin@icf.com ICF International Benedict M. Holland ben_holland@abtassoc.com Abt Associates Inc.
oai:RePEc:kap:enreec:v:81:y:2022:i:2:d:10.1007_s10640-021-00629-y2022-02-04RePEc:kap:enreec
article Effects of Surface Ozone and Climate on Historical (1980–2015) Crop Yields in the United States: Implication for Mid-21st Century Projection Abstract Surface level ozone pollution imposes significant crop yield damages. However, the quantification has mainly involved chamber experiments, which may not be representative of results in farm fields. Additionally, the relative impacts of ozone under future climate change and their possible interactions remain poorly understood. Here we attempt to empirically fill this gap using historical county-level crop yield, ozone, and climate data in the United States. We explore ozone impacts on corn, soybeans, spring wheat, winter wheat, barley, cotton, peanuts, rice, sorghum, and sunflowers. We also incorporate a variety of climatic variables to investigate potential ozone-climate interactions. The results shed light on future yield consequences of ozone and climate change individually and jointly under a projected climate scenario. Our findings indicate significant negative impacts of ozone exposure for eight of the ten crops we examined, excepting barley and winter wheat. Meanwhile, corn exhibits to be more sensitive to ozone than soybeans. These results differ from those found under chamber experiments. We also find rising temperatures tend to worsen ozone damages while water supplies mitigate that. We find that the average annual historical damages from ozone reached $6.03 billion (in 2015 U.S. dollar) from 1980 to 2015. Finally, our results suggest that the damages caused by climate change-induced ozone elevation are much smaller than the damages caused by the direct effects of climate change itself. Crop yields, Surface ozone, Climate change, Economic damages 2 2022 81 2 6 Environmental and Resource Economics 355 378 http://link.springer.com/10.1007/s10640-021-00629-y text/html Abstract Yabin Da Texas A&M University Yangyang Xu Texas A&M University Bruce McCarl brucemccarl@gmail.com Texas A&M University
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article Distributional Issues in Natural Capital Accounting: An Application to Land Ownership and Ecosystem Services in Scotland Abstract Accounting for ecosystems is increasingly central to natural capital accounting. What is missing from this, however, is an answer to questions about how natural capital is distributed. That is, who consumes ecosystem services and who owns or manages the underlying asset(s) that give rise to ecosystem services. In this paper, we examine the significance of the ownership of land on which ecosystem assets (or ecosystem types) is located in the context of natural capital accounting. We illustrate this in an empirical application to two ecosystem services and a range of ecosystem types and land ownership in Scotland, a context in which land reform debates are longstanding. Our results indicate the relative importance of private land in ecosystem service supply, rather than land held by the public sector. We find relative concentration of ownership for land providing comparatively high amounts of carbon sequestration. For air pollution removal, however, the role of smaller to medium sized, mostly privately owned, land holdings closer to urban settlements becomes more prominent. The contributions in this paper, we argue, represent important first steps in anticipating distributional impacts of natural capital (and related) policy in natural capital accounts as well as connecting these frameworks to broader concerns about wealth disparities across and within countries. Distribution, Ecosystem services, Equity, Natural capital accounting, Landownership 2 2022 81 2 1 Environmental and Resource Economics 215 241 Q56 Q57 http://link.springer.com/10.1007/s10640-021-00613-6 text/html Abstract Giles Atkinson mailg.atkinson@lse.ac.uk London School of Economics and Political Science Paola Ovando Spanish National Research Council (CSIC) The James Hutton Institute
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article Trade Openness and Environmental Emissions: Evidence from a Meta-Analysis Abstract How trade affects environmental emissions has generated heterogeneous results over the years. This is due to empirical ambiguities that are endemic in the literature. In order to evaluate and explain the discrepancy in the literature, this paper conducts a meta-analysis of 88 empirical studies published until 2018. Our results show that trade contributes to environmental emissions after controlling for publication bias and heterogeneity. In explaining the heterogeneous results across the primary studies, our findings largely suggest the estimated elasticities depend systematically on the estimation characteristics, the choice of pollutants and the publication characteristics of the primary studies. Accounting for heterogeneity, the result remains robust only for CO2 emissions compared to SO2. Overall, the trade elasticity of emissions effect remains robust when we decompose the analyses for different groups of countries, however, the emissions-content of trade is more pronounced for developed compared to developing countries. Emissions, Environment, Meta-analysis, Trade openness 2 2022 81 2 4 Environmental and Resource Economics 287 321 F6 F14 F18 C81 http://link.springer.com/10.1007/s10640-021-00627-0 text/html Abstract Sylvanus Kwaku Afesorgbor safesorg@uoguelph.ca University of Guelph Environment and Natural Resource Research Initiative, ENRRI-EfD Ghana Center Binyam Afewerk Demena Erasmus University Rotterdam
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article The Role of Cultural Worldviews in Willingness to Pay for Environmental Policy Abstract Recent research in the social psychology literature suggests that personally held beliefs may play a pivotal role in individuals’ acceptance of environmental policy. Using the contingent valuation method framework, we investigate the role of cultural worldview on individuals’ support for, and valuation of, an environmental policy that differs by its underlying cause. Results suggest that willingness to pay point estimates for management action (1) can be influenced by cultural worldviews; and (2) are dependent on the cause of environmental degradation. We also extend the examination of potential endogeneity in ex-post perceived survey consequentiality and willingness to pay measures. We find some evidence that cultural worldviews influence consequentiality and that the framing of the environmental policy scenario can also influence whether an endogenous relationship exists between the randomly assigned payment instrument and the consequentiality measure. Contingent valuation, Cultural worldview, Willingness to pay, Environmental policy 2 2022 81 2 2 Environmental and Resource Economics 243 269 http://link.springer.com/10.1007/s10640-021-00622-5 text/html Abstract Paul R. Hindsley hindslpr@eckerd.edu Eckerd College O. Ashton Morgan morganoa@appstate.edu Appalachian State University
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article Experience and Learning with Improved Technologies: Evidence from Improved Biomass Cookstoves in Ethiopia Abstract This paper provides field experiment-based evidence that user experience and learning can increase the attractiveness of an important new cooking technology promoted in Ethiopia. Slow cooking is a potentially significant stumbling block in promoting new lower-emission, fuelwood-conserving cookstoves. We ran a randomized experiment that made these improved stoves available to potential users and conducted three rounds of controlled cooking tests over a one year period, with each respondent cooking on both traditional and improved stoves on the same day. We combined our CCT results with electronic stove use monitoring data to derive inferences related to learning. Although times to cook standardized batches of injera, the Ethiopian staple, are initially on average 25% longer using the new stove, we document that with experience households reduced cook times by 18% over the first 5 to 6 months of adoption, with a further 7% reduction in the next 6 months, leading to negligible differences in cook times within a year of adoption. Those who regularly used the stoves saw greater cooking time savings, suggesting learning-by-doing was important. Fuelwood savings associated with the stove do not appear to be driven by experience or learning. Experience, Learning, Fuelwood, Cooking, Improved stove, Ethiopia 2 2022 81 2 3 Environmental and Resource Economics 271 285 http://link.springer.com/10.1007/s10640-021-00626-1 text/html Abstract Randall Bluffstone bluffsto@pdx.edu Portland State University Abebe D. Beyene Environmental and Climate Research Center/Policy Study Institute Zenebe Gebreegziabher Environmental and Climate Research Center/Policy Study Institute Mekele University Peter Martinsson University of Gothenburg Alemu Mekonnen Environmental and Climate Research Center/Policy Study Institute Addis Ababa University Michael Toman Resources for the Future
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article The Economics of the Greenium: How Much is the World Willing to Pay to Save the Earth? Abstract Sadly, not much. This paper provides a theoretical and empirical analysis of the greenium, the price premium the investor pays for green bonds over conventional bonds. We explain in simple economic terms why the price premium of a green bond essentially represents a combination of the non-pecuniary environmental benefit of the bond, as perceived by the investor, and the effective cost of issuing it, as measured by the additional issuing costs of the bond netted off a range of monetary and non-monetary benefits associated with the issuance. Our empirical model decomposes the greenium into a time-varying market component which is common to all green bonds and an idiosyncratic component which is specific to a certain green bond itself. Using the largest global green bond dataset compared to any previous studies, we find that the greenium on average amounts to, sadly, just over one basis point. However, it varies quite significantly among individual green bonds and our result suggests that a key factor underlying the variation is that they are subject to the risk of greenwashing to different extents. Greenium, Green bonds, Greenwashing, Time-varying market component, Idiosyncratic component 2 2022 81 2 7 Environmental and Resource Economics 379 408 http://link.springer.com/10.1007/s10640-021-00630-5 text/html Abstract Peter Lau lauyiulungpeter@hotmail.com Hong Kong Monetary Authority Angela Sze angela_kw_sze@hkma.gov.hk Hong Kong Monetary Authority Wilson Wan wtswan@hkma.gov.hk Hong Kong Monetary Authority Alfred Wong alfred_yt_wong@hkma.gov.hk Hong Kong Monetary Authority
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article COVID-19 Regulations, Political Institutions, and the Environment Abstract The COVID-19 pandemic was associated with short-term air quality improvements in many countries around the world. We study whether the degree of democracy and political institutions played a role. We provide novel empirical evidence from 119 countries. A given stringency of COVID-19 containment and closure policies had a stronger effect on air quality in more democratic countries, and in countries with majoritarian rather than proportional electoral rules. Our estimates suggest that the improvement in air quality was around 57% greater in majoritarian systems than in proportional systems. Confidence in government, trust in politicians, and social capital also affected outcomes. COVID-19, Infectious disease, Democracy, Electoral system, Institutions, Confidence in government, Trust, Social capital, Rally effect 2 2022 81 2 5 Environmental and Resource Economics 323 353 Q53 I18 H11 http://link.springer.com/10.1007/s10640-021-00628-z text/html Abstract Per G. Fredriksson per.fredriksson@louisville.edu University of Louisville Aatishya Mohanty aatishya002@e.ntu.edu.sg Nanyang Technological University
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article Carbon Pricing Efficacy: Cross-Country Evidence Abstract To date there has been an absence of cross-country empirical studies on the efficacy of carbon pricing. In this paper we present estimates of the contribution of carbon pricing to reducing national carbon dioxide (CO2) emissions from fuel combustion, using several econometric modelling approaches that control for other key policies and for structural factors that are relevant for emissions. We use data for 142 countries over a period of two decades, 43 of which had a carbon price in place at the national level or below by the end of the study period. We find evidence that the average annual growth rate of CO2 emissions from fuel combustion has been around 2 percentage points lower in countries that have had a carbon price compared to countries without. An additional euro per tonne of CO2 in carbon price is associated with a reduction in the subsequent annual emissions growth rate of approximately 0.3 percentage points, all else equal. While it is impossible to fully control for all relevant influences on emissions growth, our estimates suggest that the emissions trajectories of countries with and without carbon prices tend to diverge over time. Carbon dioxide emissions, Carbon pricing, Carbon tax, Cross-country, Emissions trading, Fossil fuel policies, Growth rates, Renewable energy policies Environmental and Resource Economics 1 26 O57 Q43 Q48 Q50 Q58 http://link.springer.com/10.1007/s10640-020-00436-x text/html Abstract Rohan Best rohan.best@mq.edu.au Macquarie University Paul J. Burke Australian National University Frank Jotzo Australian National University
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article Determining the Generalized Discount Rate for Risky Projects Abstract It is widely recognized that the evaluation of risky projects critically depends on how the riskiness of future benefits is treated. Standard discounting theories are based on the assumption that risks that are uncorrelated with aggregate risk are diversified, so that projects’ idiosyncratic risk is not priced. However, this may not be true for long-term risky projects, such as those with persistent idiosyncratic shocks. In this study, we investigate the impact of both aggregate risk and nondiversifiable idiosyncratic risk on the discount rate for risky projects. We extend the generalized discount rate to the case of persistent shocks. A particular advantage of the generalized discount rate is that it can be applied in the setting of incomplete markets. We show that nondiversifiable idiosyncratic risk reduces the discount rate, and increases the present value of projects’ future uncertain benefits. We further apply our findings to the evaluation of emissions reduction projects. Generalized discount rate, Term structure, Idiosyncratic risk, Cost–benefit analysis, Emissions reduction projects Environmental and Resource Economics 1 16 H43 D61 G12 http://link.springer.com/10.1007/s10640-020-00458-5 text/html Abstract Lanlan Luo Business School of Hunan University Shou Chen chenshou@hnu.edu.cn Business School of Hunan University Ziran Zou zouziran@hnu.edu.cn Business School of Hunan University
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article Buy Coal or Kick-Start Green Innovation? Energy Policies in an Open Economy Abstract This paper analyses two unilateral policies available to countries that want to rapidly curb carbon emissions in the global economy, but do not own any fossil fuel resources. If fossil fuel owners do not cooperate in $$\hbox {CO}_2$$ CO 2 emission reduction efforts, the only strategy to reduce their fossil fuels’ use is to exploit the interconnectedness of production given by international trade. We compare a Pigouvian approach, namely a subsidy for renewable energy prices, and a Coasian supply-side strategy, buying extractive rights over fossil fuel deposits abroad. Using a dynamic North–South trade model with endogenous innovation, we show how these policies, designed to prevent an environmental disaster, have different cost and welfare profiles. If fossil fuel deposits can be purchased at their market price, the supply-side policy achieves the highest welfare. If instead the fossil fuel owners require a full compensation for their income loss, subsidies for renewable energy inputs can result in higher welfare, but only if the resource-rich region has less advanced technologies for green energy production than the countries implementing the policy. Energy, Trade, Fossil fuels, Directed technical change, Supply-side policies Environmental and Resource Economics 1 32 F18 O32 O38 http://link.springer.com/10.1007/s10640-020-00455-8 text/html Abstract Chiara Ravetti chiara.ravetti@polito.it Politecnico di Torino Tania Theoduloz taniatheoduloz@uca.edu.ar Universidad Catolica de Argentina Giulia Valacchi giulia.valacchi@graduateinstitute.ch Maison de la Paix
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article ITQs, Firm Dynamics and Wealth Distribution: Does Full Tradability Increase Inequality? Abstract Concerns over the re-distributive effects of individual transferable quotas (ITQ’s) have led to restrictions on their tradability. We consider a general equilibrium model with firm dynamics to evaluate the redistributive impact of changing the tradability of ITQs. A change in tradability would happen, for example, if permits are allowed to be traded as a separate asset from ownership of an active firm. If the property right is associated with ownership of an active firm, the permit can be leased in each period but it is not possible to exit the industry and keep the right. However, allowing the permits to be traded as a separate asset has two effects. First, it leads to a greater concentration of production in the industry. Second, it directly converts a non-tradable asset into a tradable one, and this is equivalent to giving a lump sum transfer to all firms. The first effect implies a concentration in revenues, while the second implies a redistribution of wealth. We calibrate our model to match the observed increase in revenue inequality in the Northeast Multispecies (Groundfish) U.S. Fishery. We show that although observed revenue inequality—measured by the Gini coefficient—increases by 12 %, wealth inequality is reduced by 40 %. ITQ, Wealth distribution, Firm dynamics, Inequality, Permit markets 2 2017 68 10 2 Environmental and Resource Economics 249 273 http://link.springer.com/10.1007/s10640-016-0017-3 text/html Abstract José-María Da-Rocha jmrocha@uvigo.es jdarocha@itam.mx ITAM Universidade de Vigo Jaume Sempere jsempe@colmex.mx El Colegio de México
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article An Empirical Study of the Impact of Corruption on Environmental Performance: Evidence from Panel Data Abstract This paper extends the empirical debate on the effects of corruption on environmental degradation by considering a recently available measure of environmental quality, the Environmental Performance Index. This indicator is more comprehensive than the measures of air pollutant emissions commonly used in the literature and, in particular, can also capture the impact of pollution on human health. This allows for a better understanding of the actual effects of a wide range of human activities on the ecosystem. From a panel data analysis, two regularities emerge. First, corruption deteriorates the overall environmental quality. This effect is robust and persistent. Second, our findings highlight the improvement of environmental quality as income rises, even at an initial level of development. This is not in contradiction with the EKC hypothesis because an increase in income levels provides positive externalities on the whole environmental quality by compensating the mere negative effects induced by industrialization on the emission levels. As a consequence, in emerging economies, policies fighting corruption and enhancing development are very likely to improve the environmental performances. Corruption, EKC, Pollution, Panel data, Panel VAR 2 2017 68 10 4 Environmental and Resource Economics 297 318 C23 D73 O44 Q56 http://link.springer.com/10.1007/s10640-016-0019-1 text/html Abstract Maurizio Lisciandra mlisciandra@unime.it University of Messina Carlo Migliardo cmigliardo@unime.it University of Messina
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article Enhanced Geospatial Validity for Meta-analysis and Environmental Benefit Transfer: An Application to Water Quality Improvements Abstract Meta-regression models are commonly used within benefit transfer to estimate willingness to pay (WTP) for environmental quality improvements. Theory suggests that these estimates should be sensitive to geospatial factors including resource scale, market extent, and the availability of substitutes and complements. Valuation meta-regression models addressing the quantity of non-market commodities sometimes incorporate spatial variables that proxy for a subset of these effects. However, meta-analyses of WTP for environmental quality generally omit geospatial factors such as these, leading to benefit transfers that are invariant to these factors. This paper reports on a meta-regression model for water quality benefit transfer that incorporates spatially explicit factors predicted by theory to influence WTP. The metadata are drawn from stated preference studies that estimate per household WTP for water quality changes in United States water bodies, and combine primary study information with extensive geospatial data from external sources. Results find that geospatial variables are associated with significant WTP variations as predicted by theory, and that inclusion of these variables reduces transfer errors. Non-market valuation, Benefit function transfer, Meta-analysis, Spatial, Willingness to pay, Nonuse value, Ecosystem service 2 2017 68 10 6 Environmental and Resource Economics 343 375 Q51 Q25 Q53 http://link.springer.com/10.1007/s10640-016-0021-7 text/html Abstract Robert J. Johnston rjohnston@clarku.edu Clark University Elena Y. Besedin elena_besedin@abtassoc.com Abt Associates Inc. Ryan Stapler rstapler@athenahealth.com Athenahealth
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article Erratum to: Renewable Energy Policies and Technological Innovation: Evidence Based on Patent Counts 2 2017 68 10 9 Environmental and Resource Economics 441 444 http://link.springer.com/10.1007/s10640-017-0176-x text/html Abstract Nick Johnstone Nick.Johnstone@oecd.org OECD Directorate for Science, Technology and Innovation Ivan Haščič Ivan.Hascic@oecd.org OECD Environment Directorate David Popp dcpopp@maxwell.syr.edu Syracuse University NBER
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article Reducing Greenhouse Gas Emissions in Fisheries: The Case of Multiple Regulatory Instruments in Sweden Abstract The fishing sector is a candidate for efficient climate policies because it is commonly exempted from greenhouse gas taxes and the fundamental problem of using a common pool resource is far from optimally solved. At the same time, fisheries management has other objectives. This study uses Swedish fisheries to analyse how the fishing sector and its climate impact are affected by regulations aiming at: (1) solving the common pool problem (2) taxing greenhouse gas emissions and (3) maintaining small-scale fisheries. The empirical approach is a linear programming model where the effects of simultaneously using multiple regulations are analyzed. Solving the common pool problem will lead to a 30 % reduction in emissions and substantially increase economic returns. Taxing greenhouse gas emissions will further reduce emissions. Policies for maintaining the small-scale fleet will increase the size of this fleet segment, but at the cost of lower economic returns. However, combining this policy with fuel taxes will reduce the size of the small-scale fleet, thus counteracting the effects of the policy. If taxation induces fuel-saving innovations, it is shown that this will affect not only emissions and fleet structure, but also quota uptake. CO $$_{2}$$ 2 taxation, Fisheries, Greenhouse gas, Innovation, Regulation 2 2017 68 10 3 Environmental and Resource Economics 275 295 http://link.springer.com/10.1007/s10640-016-0018-2 text/html Abstract Staffan Waldo Staffan.waldo@slu.se Swedish University of Agricultural Sciences (SLU) Anton Paulrud Swedish Agency for Marine and Water Management
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article Bargaining Over Environmental Budgets: A Political Economy Model with Application to French Water Policy Abstract In decentralized water management with earmarked budgets financed by user taxes and distributed back in the form of subsidies, net gains are often heterogeneous across user categories. This paper explores the role of negotiation over budget allocation and coalition formation in water boards, to provide an explanation for such user-specific gaps between tax payments and subsidies. We propose a bargaining model to represent the sequential nature of the negotiation process in water districts, in which stakeholder representatives may bargain upon a fraction of the budget only. The structural model of budget shares estimated from the data on French Water Agencies performs well as compared with reduced-form estimation. Empirical results confirm the two-stage bargaining process and provide evidence for systematic net gains from the system for agricultural water users. Water policy, Political economy, Structural estimation, Bargaining 2 2017 68 10 1 Environmental and Resource Economics 227 248 http://link.springer.com/10.1007/s10640-016-0013-7 text/html Abstract Alban Thomas thomas@toulouse.inra.fr University of Toulouse Vera Zaporozhets University of Toulouse
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article Credence Goods, Misleading Labels, and Quality Differentiation Abstract Due to differences in information disclosure mechanisms, consumer misinformation about the quality of many credence goods is more endemic at intermediate levels of the quality spectrum rather than at the extremes. Using an oligopoly model of vertical product differentiation, we examine how consumers’ overestimation of the quality of intermediate-quality products affects firms’ incentives to improve product quality. The firms non-cooperatively choose the quality of their product before choosing its price or quantity. Irrespective of the nature of second stage competition, Bertrand or Cournot, we find that quality overestimation by consumers increases profit of the intermediate-quality firm, and motivates it to raise its product’s quality. In response, the high-quality firm improves its product quality even further but ends up with lower profit. Overall, average quality of the vertically differentiated product improves, which raises consumer surplus. Social welfare increases when the firms compete in prices but falls when they compete in quantities. Credence goods, Misinformation, Vertical product differentiation 2 2017 68 10 7 Environmental and Resource Economics 377 396 Q56 L15 M37 http://link.springer.com/10.1007/s10640-016-0024-4 text/html Abstract Soham Baksi s.baksi@uwinnipeg.ca University of Winnipeg Pinaki Bose pinaki.bose@umanitoba.ca University of Manitoba Di Xiang xiangdi@swufe.edu.cn Southwestern University of Finance and Economics
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article Global Expansion of Renewable Energy Generation: An Analysis of Policy Instruments Abstract This study analyzes the degree to which renewable energy policies, in particular feed-in tariffs and renewable portfolio standards, facilitate renewable energy generation growth across a wide range of countries using an original cross-national dataset of 164 countries between 1990 and 2010. Results provide evidence that both policies are important predictors of renewable energy market growth. The dependent variable is operationalized first as the percentage of total electricity from renewable energy and second as the annual increase in total renewable energy generation in a country. Results are robust to several alternative model specifications including those that exclude hydroelectric generation in the construct of renewable energy. The degree to which feed-in tariffs are endogenous, however, is not conclusive. Besides the prominent role of these policies, results reveal that factors related to annual increases in renewable energy differ from those related to an overall transition toward greater reliance on renewable energy. This suggests that simply increasing renewable generation does not necessarily decrease reliance on fossil fuels or help countries make the shift to a clean energy economy. Energy policy, Renewable energy, Feed-in-tariff, Renewable portfolio standard, Electricity markets 2 2017 68 10 8 Environmental and Resource Economics 397 440 O38 O57 Q48 Q40 http://link.springer.com/10.1007/s10640-016-0025-3 text/html Abstract Sanya Carley scarley@indiana.edu Indiana University Elizabeth Baldwin University of Arizona Lauren M. MacLean Indiana University Jennifer N. Brass Indiana University
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article Housing Market Fluctuations and the Implicit Price of Water Quality: Empirical Evidence from a South Florida Housing Market Abstract In this study we utilize a hedonic property price analysis to examine changes in the implicit price of water quality given housing market fluctuations over time. We analyze Martin County, Florida waterfront home sales from 2001 to 2010 accounting for the associated significant real estate fluctuations in this area through flexible econometric controls in space and time. We apply a segmented regression methodology to identify housing market price instability over time, interact water quality with these identified market segmentations, and embed these interactions within a spatial fixed effect model to further account for any spatial heterogeneity in the waterfront market. Results indicate that water quality improvement is associated with higher property values. We find no evidence that the economic downturn crowded out concern for the water quality in this area. We further impute an implicit prices of $2614, evaluated at the sample mean, for 1 % point increase in the water quality grade. Hedonic price, Housing market fluctuations, Segmented regression, Spatial fixed effects, Water quality D12, Q25, Q26, R21 2 2017 68 10 5 Environmental and Resource Economics 319 341 http://link.springer.com/10.1007/s10640-016-0020-8 text/html Abstract Okmyung Bin bino@ecu.edu East Carolina University Jeffrey Czajkowski jczaj@wharton.upenn.edu University of Pennsylvania Jingyuan Li lij@imsg.com I.M. Systems Group Gabriele Villarini gabriele-villarini@uiowa.edu University of Iowa
oai:RePEc:kap:enreec:v:86:y:2023:i:1:d:10.1007_s10640-023-00786-22023-08-21RePEc:kap:enreec
article Don’t Drink the Water! The Impact of Harmful Algal Blooms on Household Averting Expenditure Abstract Increasingly frequent Harmful Algal Blooms (HABs) are generating growing public concern and attracting new policy focus both across the United States and globally. One particularly acute problem with HABs is the potential impact on drinking water safety due to high levels of microcystin toxins in the public water supply. We study households’ averting expenditure in response to a HAB outbreak in the Toledo, Ohio water supply. Using household level data from the NielsenIQ consumer panel for bottled water purchases, we estimate both post-matching difference-in-difference models and household fixed effect models of averting behavior. Our estimates provide the first revealed preference estimates of averting expenditure associated with drinking water contamination by HABs. We find that household averting behavior in response to a 3-day water advisory persists beyond the transitory event period with a declining magnitude over time. Per household averting expenditure is approximately $3.60, providing a lower bound willingness to pay to avoid HABs in public drinking water supplies. Our results imply a total averting expenditure of $792, 950 across all affected households serviced by the Toledo public water supply. Harmful algal bloom, Averting behavior, Bottled water, Lake Erie 1 2023 86 10 2 Environmental and Resource Economics 29 55 Q53 Q51 http://link.springer.com/10.1007/s10640-023-00786-2 text/html Abstract Yanan Liu liu.8167@buckeyemail.osu.edu The Ohio State University H. Allen Klaiber klaiber.16@osu.edu The Ohio State University
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article How Corporate–NGO Partnerships Affect Eco-Label Adoption and Diffusion Abstract In a proposed multistage game, a firm and an environmental nongovernmental organization (NGO) initially partner to develop an eco-label, to attain both the environmental benefits and profits. The partnership enables a compromise, and the partner firm, as well as other competitors in the market, subsequently decide whether to adopt the eco-label. Finally, the firms compete on price or quantity in a homogeneous or vertically differentiated market. By analyzing firms’ incentives to adopt the eco-label, this study predicts outcomes related to the eco-labeling strategies of the NGO and the corporate partner, the diffusion of the eco-label, environmental quality, and welfare, depending on both the nature of the competition (Bertrand or Cournot) and the degree of consumer heterogeneity. The results of the game show that it is always in the interest of the environmental NGO and the firm to form a partnership. The corporate partner’s incentive to adopt the eco-label is stronger in Bertrand than in Cournot competition, but diffusion occurs only with Cournot competition. Paradoxically, the NGO may prefer a less stringent eco-label, to promote its diffusion and the consumption of eco-labeled products. Whereas in Cournot competition, eco-labeling improves all components of welfare, in Bertrand competition, it degrades consumer surplus, even if it improves overall profits and environmental quality. NGO, Eco-label, Environmental quality, Eco-label diffusion, Product differentiation 1 2023 86 10 9 Environmental and Resource Economics 233 261 D62 L13 L15 L21 L31 Q58 http://link.springer.com/10.1007/s10640-023-00795-1 text/html Abstract Dorothée Brécard brecard@univ-tln.fr Université de Toulon
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article Estimating the Economic Impact of Intensifying Environmental Regulation in China Abstract Faced with serious environmental degradation, China under Xi Jinping has pursued a massive and sustained campaign against pollution, especially air pollution, since 2013. How much of a burden has the campaign-style escalation in environmental enforcement had on manufacturing firms? Using firm-level environmental supervision records, we directly measure the environmental regulation intensity. We combine a regression discontinuity design based on Qinling–Huaihe winter heating policy with a first difference approach to estimate the causal effect of environmental regulatory enforcement on firm performance. We find that, for high air-polluting manufacturing firms, a 1% increase in the probability of being penalized for environmental violations lowers their total factor productivity by 2.5%. We also find that the campaign-style environmental enforcement has affected larger enterprises and state-owned enterprises less while deterring the entry of new firms. While we appreciate the importance of improving air quality, our research offers a more well-rounded understanding of China’s environmental enforcement initiatives and especially the costs of such enforcement on industry. Our findings suggest that the reward and punishment of local officials and of firms need to be sensitive to the costs of adjustment. Air pollution, Environmental regulation, Political economy, Productivity, Regression discontinuity design 1 2023 86 10 6 Environmental and Resource Economics 147 172 Q52 Q53 Q58 http://link.springer.com/10.1007/s10640-023-00791-5 text/html Abstract Jiangnan Zeng jiz198@pitt.edu University of Pittsburgh Qiyao Zhou qiyaoz@umd.edu University of Maryland Dali Yang daliyang@uchicago.edu University of Chicago
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article Assessing Macro-economic Effects of Climate Impacts on Energy Demand in EU Sub-national Regions Abstract European policy makers are increasingly interested in higher spatial representations of future macro-economic consequences from climate-induced shifts in the energy demand. Indeed, EU sub-national level analyses are currently missing in the literature. In this paper, we conduct a macro-economic assessment of the climate change impacts on energy demand at the EU sub-national level by considering twelve types of energy demand impacts, which refer to three carriers (petroleum, gas, and electricity) and four sectors (agriculture, industry, services, and residential). These impacts have been estimated using climatic data at a high spatial resolution across nine Shared Socioeconomic Pathway (SSP) and Representative Concentration Pathway (RCP) combinations. The impacts feed into a Computable General Equilibrium model, whose regional coverage has been extended to the sub-national NUTS2 and NUTS1 level. Results show that negative macroeconomic effects are not negligible in regions located in Southern Europe mainly driven by increased energy demand for cooling. By 2070, we find negative effects larger than 1% of GDP, especially in SSP5-RCP8.5 and SSP3-RCP4.5 with a maximum of − 7.5% in Cyprus. Regarding regional differences, we identify economic patterns of winners and losers between Northern and Southern Europe. Contrasting scenario combinations, we find that mitigation reduces adverse macro-economic effects for Europe up to a factor of ten in 2070, from 0.4% GDP loss in SSP5-RCP8.5 to 0.04% in SSP2-RCP2.6. Macro-economic impacts of climate change, Energy demand, CGE models, Sub-national regions, Europe 1 2023 86 10 7 Environmental and Resource Economics 173 201 http://link.springer.com/10.1007/s10640-023-00792-4 text/html Abstract Gabriele Standardi gabriele.standardi@cmcc.it CMCC@Ca’Foscari Centro Euro-Mediterraneo Sui Cambiamenti Climatici Università Cà Foscari RFF-CMCC European Institute on Economics and the Environment (EIEE) Shouro Dasgupta CMCC@Ca’Foscari Centro Euro-Mediterraneo Sui Cambiamenti Climatici Università Cà Foscari RFF-CMCC European Institute on Economics and the Environment (EIEE) London School of Economics and Political Science (LSE) Ramiro Parrado CMCC@Ca’Foscari Centro Euro-Mediterraneo Sui Cambiamenti Climatici Università Cà Foscari RFF-CMCC European Institute on Economics and the Environment (EIEE) Enrica Cian CMCC@Ca’Foscari Centro Euro-Mediterraneo Sui Cambiamenti Climatici Università Cà Foscari RFF-CMCC European Institute on Economics and the Environment (EIEE) Ca’ Foscari University of Venice Francesco Bosello CMCC@Ca’Foscari Centro Euro-Mediterraneo Sui Cambiamenti Climatici Università Cà Foscari RFF-CMCC European Institute on Economics and the Environment (EIEE) Ca’ Foscari University of Venice
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article Biodiversity Benefits of Birdwatching Using Citizen Science Data and Individualized Recreational Demand Models Abstract Birding is one of the most popular recreational activities, but bird populations have been declining worldwide. Understanding how much people benefit from local bird populations levels, species richness and their preferences can help inform bird conservation management. This paper uses eBird data and random utility models to assess the birders’ preferences and welfare for trips to local areas. The sample eBird citizen science data includes 35, 656 trips by 290 individual birders to 1227 unique birding hotspots in Alberta, Canada. The economic value of seeing one additional bird species during a trip is estimated to be $0.68 on average. We estimated a nonlinear relationship between the utility and number of bird species suggesting satiation in recreation preferences, and the highest MWTP is estimated to be in the summer and fall seasons. Bird species at risk, based on Alberta’s strategy for the management of species at risk, are valued almost ten times higher as seeing other types of bird species. We also estimate individualized choice models and find that preference for species richness is heterogeneous across birders. Results of a combinatorial test find that the individualized choice models produce average welfare estimates that are 67% higher than the single model but the difference is not statistically significant. The members of eBird represent a convenience sample that may not constitute the general population. Thus along with proper weighting, these benefit estimates produced in this research can help inform future bird conservation management decisions including alternative funding mechanisms. Biodiversity benefits, Birds, Citizen science data, Nonmarket values, Travel cost 1 2023 86 10 4 Environmental and Resource Economics 83 107 http://link.springer.com/10.1007/s10640-023-00788-0 text/html Abstract Tharaka A. Jayalath taj771@usask.ca University of Saskatchewan Patrick Lloyd-Smith University of Saskatchewan Marcus Becker Alberta Biodiversity Monitoring Institute
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article Low-Carbon Investment and Credit Rationing Abstract This paper develops a principal-agent model with adverse selection to analyse firms’ decisions between an existing carbon-intensive technology and a new low-carbon technology requiring an externally funded initial investment. We find that a Pigouvian emission tax alone may result in credit rationing and under-investment in low-carbon technologies. Combining the Pigouvian tax with interest subsidies or loan guarantees resolves credit rationing and yields a first-best outcome. An emission tax set above the Pigouvian level can also resolve credit rationing and, in some cases, yields a first-best outcome. If a carbon price is (politically) not feasible, intervention on the credit market alone can promote low-carbon development. However, such a policy yields a second-best outcome. The issue of credit rationing is temporary if the risks of low-carbon technologies decline. However, there are social costs of delay if credit rationing is not addressed. Asymmetric information, Credit rationing, Emission tax, Interest rate subsidy, Loan guarantee, Low-carbon investment 1 2023 86 10 5 Environmental and Resource Economics 109 145 G20 H23 H81 Q50 http://link.springer.com/10.1007/s10640-023-00789-z text/html Abstract Christian Haas Frankfurt School of Finance & Management Justus-Liebig University Gießen Karol Kempa k.kempa@fs.de Frankfurt School of Finance & Management
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article Investigating Consumer Preferences for Sustainable Packaging Through a Different Behavioural Approach: A Random Regret Minimization Application Abstract Plastic pollution causing the near-permanent contamination of the environment is a preeminent concern. The largest market sector for plastic resins is packaging, and the food industry plays a major role in producing plastic packaging waste. Therefore, the gradual switch of the food system towards pro-environmental packaging strategies is required to contain the plastic packaging waste issue. To this extent, this study aimed to investigate how food consumers relatively value the provision of different sustainable packaging alternatives, namely the unpackaged option and bioplastic packaging. Moreover, to shed light on the behavioural mechanism underlying the decision-making process for sustainable packaging, we considered two different decision paradigms: the traditional random utility maximization and random regret minimization framework. Overall, our results indicate that consumer tastes are highly heterogeneous and that preference patterns change according to the behavioural approach assumed by individuals. Policymakers and marketers of food industries need to carefully consider the differences in the decision mechanism of consumers when implementing strategies to encourage pro-environmental food choices. Notably, our findings elucidate on the importance to embrace other perspectives as well, and not simply limit to utility maximization, to fully comprehend the decision-making process of consumers for sustainable foods. Sustainable food choices, Bioplastic packaging, Unpackaged food, Choice experiment, Hybrid latent class, Pro-environmental behaviour 1 2023 86 10 1 Environmental and Resource Economics 1 27 http://link.springer.com/10.1007/s10640-023-00785-3 text/html Abstract Giovanna Piracci giovanna.piracci@unifi.it University of Florence Fabio Boncinelli fabio.boncinelli@unifi.it University of Florence Leonardo Casini leonardo.casini@unifi.it University of Florence
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article Greening Trade Agreements Through Harmonization of Environmental Regulations Abstract Countries are increasingly using free trade agreements (FTAs) and customs unions (CUs) to cooperate on environmental issues by including environmental provisions in regional trade agreements (RTAs). We examine whether countries form RTAs with regional environmental regulations and join a multilateral trade agreement (MTA) with a common environmental regulation that maximizes world welfare. Each government imposes an environmental tax to mitigate negative externalities caused by the consumption of differentiated goods. The main finding is that a deep FTA with regional harmonization of environmental taxes may act as a stumbling block for an MTA with multilateral harmonization of environmental taxes if the degree of product differentiation is intermediate. In contrast, a deep CU with a regional environmental tax serves as a building block, even if negative consumption externalities are transboundary. Customs union, Free trade agreement, Multilateral trade agreement, Environmental taxes, Tariffs 1 2023 86 10 3 Environmental and Resource Economics 57 81 F12 F13 F18 http://link.springer.com/10.1007/s10640-023-00787-1 text/html Abstract Yasushi Kawabata kawabata@econ.nagoya-cu.ac.jp Nagoya City University Yasuhiro Takarada ytakara@nanzan-u.ac.jp Nanzan University
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article Assessing the Impacts of Birmingham’s Clean Air Zone on Air Quality: Estimates from a Machine Learning and Synthetic Control Approach Abstract We apply a two-step data driven approach to determine the causal impact of the clean air zone (CAZ) policy on air quality in Birmingham, UK. Levels of NO2, NOx and PM2.5 before and after CAZ implementation were collected from automatic air quality monitoring sites both within and outside the CAZ. We apply a unique combination of two recent methods: (1) a random forest machine learning method to strip out the effects of meteorological conditions on air pollution levels, and then (2) the Augmented Synthetic Control Method (ASCM) on the de-weathered air pollution data to isolate the causal effect of the CAZ. We find that, during the first year following the formal policy implementation, the CAZ led to significant but modest reductions of NO2 and NOX levels measured at the roadside within (up to 3.4% and 5.4% of NO2 and NOX, respectively) and outside (up to 6.6% and 11.9%) the zone, with no detectable changes at the urban background site outside the CAZ. No significant impacts of the CAZ were found on concentrations of fine particulates (PM2.5). Our analysis demonstrates the short-term effectiveness of CAZ in reducing concentrations of NO2 and NOX. Clean air zone, Air pollution, Machine learning, Synthetic control method 1 2023 86 10 8 Environmental and Resource Economics 203 231 Q53 Q58 C23 http://link.springer.com/10.1007/s10640-023-00794-2 text/html Abstract Bowen Liu University of Birmingham University of Birmingham John R. Bryson University of Birmingham Deniz Sevinc University of Birmingham Matthew A. Cole University of Birmingham Robert J. R. Elliott r.j.elliott@bham.ac.uk University of Birmingham Suzanne E. Bartington University of Birmingham William J. Bloss University of Birmingham Zongbo Shi University of Birmingham
oai:RePEc:kap:enreec:v:86:y:2023:i:1:d:10.1007_s10640-023-00796-02023-08-21RePEc:kap:enreec
article Do Flood and Heatwave Experiences Shape Climate Opinion? Causal Evidence from Flooding and Heatwaves in England and Wales Abstract Understanding how personal experience of extreme weather events raises awareness and concern about climate change has important policy implications. It has repeatedly been argued that proximising climate change through extreme weather events holds a promising strategy to increase engagement with the issue and encourage climate change action. In this paper, we exploit geo-referenced panel data on climate change attitudes as well as natural variation in flood and heatwave exposure in England and Wales to estimate the causal effect of extreme weather events on climate change attitudes and environmental behaviours using a difference-in-differences matching approach. Our findings suggest that personal experience with both flooding and heatwaves significantly increases risk perception towards climate change impacts but has no effect on climate change concern or pro-environmental behaviour, on average. Moreover, the findings indicate that the effect of flooding on risk perception is highly localised and diminishes at greater distances. For heatwaves, we find that the effect on risk perception is driven by the recent salient summer heatwaves of 2018 and 2019. Having experienced both events also significantly increases climate change concern and pro-environmental behaviour, in addition to risk perception. Causal inference, Climate change beliefs, Climate change impacts, Difference-in-differences estimation, Extreme weather events, Panel data, Pro-environmental behaviour, Propensity score matching, Public opinion 1 2023 86 10 10 Environmental and Resource Economics 263 304 C23 D04 D81 Q54 http://link.springer.com/10.1007/s10640-023-00796-0 text/html Abstract Paul M. Lohmann p.lohmann@jbs.cam.ac.uk University of Cambridge University of Cambridge Andreas Kontoleon University of Cambridge University of Cambridge
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article Co-enforcement of Common Pool Resources to Deter Encroachment: Evidence from a Field Experiment in Chile Abstract This work presents the results of framed field experiments designed to study the co-enforcement of access to common pool resources. The experiments were conducted in the field with artisanal fishers in Chile. In the experiments, members of a CPR group (called insiders) not only decided how much to harvest but also invest in monitoring to deter poaching by outsiders. Sanctions for poaching were exogenous as if provided by a government authority. Treatments varied the level of the sanction and whether the monitoring investment was voluntarily provided by insiders or collectively provided by a group vote. Results suggest that co-enforcement can reduce poaching by outsiders and increase harvests by insiders, but the insiders’ monitoring investments tended to offset their gains in harvest earnings. Higher poaching sanctions and voting on monitoring contributions, separately and together, led insiders to invest enough in monitoring to eliminate the average gains from poaching. However, poaching was not eliminated despite zero or negative average poaching earnings. Common pool resources, Enforcement, Experimental economics, Field experiment, Poaching, Territorial use rights for fisheries, Chile 2 2021 80 10 10 Environmental and Resource Economics 425 450 Q28 C93 D70 H40 Q22 http://link.springer.com/10.1007/s10640-021-00591-9 text/html Abstract Carlos A. Chávez Universidad de Talca and Interdisciplinary Center for Aquaculture Research (INCAR) James J. Murphy murphy@uaa.alaska.edu University of Alaska Anchorage John K. Stranlund University of Massachusetts-Amherst
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article Corporate Green Bonds: Understanding the Greenium in a Two-Factor Structural Model Abstract A novel structural model is developed to understand the determinants of green bond prices and the so-called ‘greenium’, that is, the premium that bondholders are willing to pay to invest in green securities rather than conventional ones. The presence of a greenium makes green bonds relatively cheap vehicles to fund environmentally sustainable projects and thus contributes to the shift to a green economy. Yet, evidence on the greenium is mixed and the determinants of green bond yields are not fully understood. In this model two sources of uncertainty are introduced, that is, of cash flows of the firm and of the effectiveness of the financed green projects. The adoption of two risk factors brings in some mathematical complexity but allows for a better modelling of the multi-facet nature of these financial instruments. Our model is rich enough to generate both a positive and a negative premium, as both have been detected in the empirical literature. Thus, we shed light on possible heterogeneity concerning the existence of a greenium in the green bond universe. Moreover, we show how green bonds affect the issuer’s creditworthiness, depending on the correlation of the green project with the core business of the firm and study their impact on investors’ portfolio allocation. Green bonds, Climate finance, Corporate social responsibility 2 2021 80 10 4 Environmental and Resource Economics 257 278 http://link.springer.com/10.1007/s10640-021-00585-7 text/html Abstract Elettra Agliardi elettra.agliardi@unibo.it University of Bologna Rossella Agliardi rossella.agliardi@unibo.it University of Bologna
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article Natural Resource Management: A Network Perspective Abstract This paper studies the role of social networks in the management of natural resources. We consider a finite number of agents who exploit a specific natural resource. Harvesting is subject to three external effects, namely resource stock externalities, crowding externalities, and collaboration spillovers. We show that the structure of the social network—defined by the presence of collaboration links between individual agents—determines the equilibrium and the optimal harvesting amount. We then allow the agents to make decisions about creating or eliminating cooperation links, which endogenizes the structure of the network and is proved to affect total harvesting and aggregate welfare. Conservation plans are shown to change the regulator’s objective and increase even further the gap between the decentralized and the optimal outcomes. We show that the optimal policy depends explicitly on the structure of the network and the ‘centrality’ of the associated agents. Finally, introducing heterogeneity is proved to affect both individual profits and the incentives to create cooperation links. Environmental externalities, Social networks, Natural resource management, Optimal network structure 2 2021 80 10 3 Environmental and Resource Economics 221 256 D85 H23 Q30 http://link.springer.com/10.1007/s10640-021-00583-9 text/html Abstract Efthymia Kyriakopoulou Efthymia.kyriakopoulou@slu.se Swedish University of Agricultural Sciences Anastasios Xepapadeas xepapad@aueb.gr University of Bologna
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article Professor Sir Partha Dasgupta Awarded Kew International Medal for Contributions to Science, Conservation and the Critical Challenges Facing Humanity 2 2021 80 10 1 Environmental and Resource Economics 197 198 http://link.springer.com/10.1007/s10640-021-00604-7 text/html Abstract Ian Bateman I.Bateman@exeter.ac.uk University of Exeter Business School Christian Gollier Toulouse School of Economics Phoebe Koundouri Athens University of Economics and Business Ingmar Schumacher IPAG Business School
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article Temperature and Exports: Evidence from the United States Abstract This paper estimates the effect of exogenous short-term temperature changes on the economy of the United States, using high-resolution data on monthly exports which has not been previously exploited in the literature. The detailed disaggregation of U.S. export data into sectors enables a top-down estimation of the net effect of temperature, while also identifying potential mechanisms at the micro level. Using an econometric specification which allows high parametric flexibility, I find significantly negative effects of both high and low temperatures. The magnitude of the effects corresponds to an average reduction of annual U.S. exports by 0.20%, following a uniform 2 $$^{\circ }$$ ∘ C temperature increase. Industry heterogeneity in the temperature effect suggests disparate mechanisms behind hot and cold days, which are important to take into account when estimating the future economic damages of climate change in the United States. Climate change, Exports, Manufacturing, Temperature, United States 2 2021 80 10 6 Environmental and Resource Economics 311 337 http://link.springer.com/10.1007/s10640-021-00587-5 text/html Abstract Jimmy Karlsson jimmy.karlsson@economics.gu.se University of Gothenburg
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article Blame the Foreigners? Exports and Sulfur Dioxide Emissions in China Abstract This paper provides an overhaul of the contribution of exports to industrial sulfur dioxide ( $${\hbox {SO}}_2$$ SO 2 ) emissions in Chinese cities. My estimation strategy exploits the import demand shocks of export destination markets (net of their demand for Chinese products) as a plausibly exogenous source of variation in the cities’ exports. The baseline results show that a 10%-point increase in export shock (weighted by the exporting industry’s relative emission intensity) leads to a 1.6%-point rise in $${\hbox {SO}}_2$$ SO 2 emissions, equivalent to a 635-ton increase per year for an average Chinese city. This estimate remains qualitatively stable to an array of robustness checks by accounting for: alternative controls for production for domestic sales shocks, the city market share in global trade, and the influence of a lagged impact of foreign demand shocks. Tentative evidence also suggests that production for exports does not contribute to nationwide emission intensity drop. A further anatomy shows with weak evidence that foreign-owned firms and deeper contractual links with the global production network could play a positive role in reducing the environmental footprint of industrial activities. Trade, Pollution, Environmental regulation, China F18, F64, Q53, Q56 2 2021 80 10 5 Environmental and Resource Economics 279 309 http://link.springer.com/10.1007/s10640-021-00586-6 text/html Abstract Zheng Wang zheng.wang@dmu.ac.uk De Montfort University GEP, University of Nottingham
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article A Valuation of Restored Streams Using Repeat Sales and Instrumental Variables Abstract Urban streams provide use and non-use value to local stakeholders and distant beneficiaries, alike, and play a critical role in maintaining ecosystem health. Due to dense residential development and associated stormwater infrastructure, the services these streams provide are at risk and likely to degrade as additional urban growth occurs. To combat degraded stream services and improve environmental quality, significant efforts to restore impaired streams are increasingly common. However, these restorations are costly, making estimates of the associated benefits critical to evaluating restoration policies. Using a repeat sales approach and instrumenting for the endogeneity of site selection we provide causal evidence of housing value capitalization of stream restoration projects to nearby property values. We find a local average treatment effect of 11% in property appreciation for our most inclusive distance buffer and show that ignoring endogenous assignment of restoration leads to bias on the scale of an order of magnitude in these estimates. Stream restoration, Non-market valuation, Repeat sales, Instrumental variables 2 2021 80 10 2 Environmental and Resource Economics 199 219 http://link.springer.com/10.1007/s10640-021-00575-9 text/html Abstract Charles Towe charles.towe@uconn.edu University of Connecticut H. Allen Klaiber The Ohio State University Joe Maher US Government Accountability Office Will Georgic Ohio Wesleyan University
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article Assurance Contracts to Support Multi-Unit Threshold Public Goods in Environmental Markets Abstract The free riding incentive has been a major obstacle to establishing markets and payment incentives for environmental goods. The use of monetary incentives to induce private provision of public goods has gained increasing support to help market ecosystem services. Using a series of lab experiments, we explore new ways to raise money from individuals to support private provision of multi-unit threshold public goods. In our proposed mechanisms, individuals receive an assurance contract that offers qualified contributors an assurance payment as compensation in the event that total contributions fail to achieve the threshold provision cost. Contributors qualify by contracting to support provision with a minimum contribution. Evidence from lab experiments shows that the provision probability, group demand revelation, and social welfare significantly increase when the assurance contract is present. Coordination is improved by the assurance payment especially for agents with values above the assurance level, leading to significantly higher aggregate contributions. A medium level of assurance payment used on units with medium and high value-cost ratios is observed to induce the largest improvement on social surplus. Our approach contributes to the private provision of environmental and other types of public goods. Assurance payments, Threshold public goods, Multiple units, Lab experiment, Ecosystem services 2 2021 80 10 7 Environmental and Resource Economics 339 378 H41 C72 C92 Q57 http://link.springer.com/10.1007/s10640-021-00588-4 text/html Abstract Zhi Li zhili@xmu.edu.cn Xiamen University Pengfei Liu pengfei_liu@uri.edu University of Rhode Island Stephen K. Swallow stephen.swallow@uconn.edu University of Connecticut
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article Genuine Savings and Sustainability with Resource Diffusion Abstract We consider a spatial extension of genuine savings and wealth as a capital-based indicator of sustainability. In both inefficient and efficient economies, where well-being is locally or globally maximized, respectively, the well-known Hotelling rule and Hartwick (Dixit–Hammond–Hoel) investment rules and results are extended, depending on the extent of the spatial diffusion of natural capital. It is shown that the net present value of any future change in neighboring resource stocks affects the current change in intergenerational well-being. Numerical examples show the relevance of such parameters as the diffusion rate, discount rate, and marginal utility of consumption. Moreover, they suggest the exact adjustments to be made in aggregating or disaggregating the sustainability of different spatial units, which is not addressed in the current practice of green or wealth accounting. Genuine savings, Inclusive wealth, Sustainable development, Spatial diffusion 2 2021 80 10 11 Environmental and Resource Economics 451 471 C21 C22 Q20 Q30 Q56 http://link.springer.com/10.1007/s10640-021-00592-8 text/html Abstract Rintaro Yamaguchi yamaguchi.rintaro.r41@kyoto-u.jp National Institute for Environmental Studies (NIES)
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article The Impact of Career Concerns and Cognitive Dissonance on Bureaucrats’ Use of Benefit-Cost Analysis Abstract Previous research shows that Benefit-Cost Analysis (BCA) is seldom done in Sweden, and that the results e.g., in Norway and the Netherlands do not influence the ultimate policy choice. We explain why bureaucrats may choose (not) to do a BCA with cognitive- and search costs coupled with career concerns. Given the initial policy chosen by an agenda setter, bureaucrats who stay working at an agency have policy preferences close to the initial policy; those with reservation wages above a threshold quit and therefore do not influence policy. The bureaucrats’ preferences converge to the initial policy level over time. A BCA reveals the inefficiency of the initial policy and the bureaucrats consequently have no incentive to do one, except when the policy is restricted by a binding governmental budget constraint. Bureaucrats, Career concerns, Civil servants, Cognitive dissonance, Benefit-cost analysis, Environmental policy, Information search 2 2021 80 10 9 Environmental and Resource Economics 409 424 D61 D73 H41 http://link.springer.com/10.1007/s10640-021-00590-w text/html Abstract Johanna Jussila Hammes johanna.jussila.hammes@vti.se Swedish National Road and Transport Research Institute, VTI
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article Unilateral Phase-Out of Coal to Power in an Emissions Trading Scheme Abstract We investigate the displacement effects of unilateral phase-out-of-coal policies in a stylized two-country model with coal- and gas-fired electricity generation in an international emissions trading scheme. In the basic policy scenario, electricity markets are national and one country bans coal while the emissions cap remains unchanged. The allocative displacement effects are strongly asymmetric: the coal-banning country suffers a welfare loss, the other country is better off, and aggregate welfare declines. Furthermore, the permit price decreases, while the electricity price rises in the unilaterally acting country and declines in the other country. If all countries would phase out coal, the effects would be symmetric and all countries would lose. We then extend the analysis to the cases (i) when the unilateral coal ban is combined with a moderate cut of the emissions cap (as recently suggested in an EU Directive) and (ii) when we allow for international trade in electricity. Compared to the basic unilateral policy, in these cases, the total welfare costs tend to be smaller and some tend to be shifted from the unilaterally acting country to the other one. Unilateral, Phase-out, Coal, Gas, Electricity, ETS 2 2021 80 10 8 Environmental and Resource Economics 379 407 H22 Q37 Q48 http://link.springer.com/10.1007/s10640-021-00589-3 text/html Abstract Thomas Eichner thomas.eichner@fernuni-hagen.de University of Hagen Rüdiger Pethig pethig@vwl.wiwi.uni-siegen.de University of Siegen
oai:RePEc:kap:enreec:v:75:y:2020:i:2:d:10.1007_s10640-018-00311-w2020-02-06RePEc:kap:enreec
article Spatial Dimensions of Stated Preference Valuation in Environmental and Resource Economics: Methods, Trends and Challenges Abstract An expanding literature addresses spatial dimensions related to the elicitation, estimation, interpretation and aggregation of stated preference (SP) welfare measures. Recognizing the relevance of spatial dimensions for SP welfare analysis and the breadth of associated scholarly work, this article reviews the primary methods, findings, controversies and frontiers in this important area of contemporary research. This review is grounded in a typology that characterizes analytical methods based on theoretical foundations and the type of statistical modelling applied. The resulting interpretive appraisal seeks to (1) summarize and contrast different theoretical arguments and points of departure within the spatial SP literature, (2) synthesize findings, insights and methods from the literature to promote a more holistic perspective on the treatment of spatial dimensions within SP welfare analysis, (3) evaluate and reconcile divergent approaches in terms of theoretical grounding, ability to identify relevant empirical effects, and relevance for SP valuation, and (4) discuss outstanding questions and research frontiers. Discrete choice experiments, Contingent valuation, Spatial heterogeneity, Distance decay, Spatial dependence, Spatial autocorrelation, Non-market goods, Ecosystem services, Willingness to pay, Willingness to accept 2 2020 75 2 1 Environmental and Resource Economics 215 242 http://link.springer.com/10.1007/s10640-018-00311-w text/html Abstract Klaus Glenk klaus.glenk@sruc.ac.uk Scotland’s Rural College (SRUC) Robert J. Johnston Clark University Jürgen Meyerhoff Technische Universität Julian Sagebiel Technische Universität
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article The Impact of Spatial Patterns in Road Traffic Externalities on Willingness-to-Pay Estimates Abstract Studying traffic related externalities in the city of Gent (Belgium), we find little to no evidence that observed spatial dependencies in actual (objective) externality levels play a direct role in determining spatial dependencies in the willingness to pay (WTP) for changes in the city’s mobility policy. Investigating alternative factors that can influence WTP-estimates, however, reveals that higher stated (subjective) externality levels are positively correlated with higher WTP for reducing exposure to noise, air and odor pollution. Our results suggest complex interactions between housing decisions, perceived externality levels and WTP-estimates. Thus, allowing for subjective perceptions, sorting behavior and patterns in individuals’ characteristics can result in WTP-estimates that are not spatially correlated even though the underlying externalities are spatially correlated. Discrete choice experiments, Road traffic externalities, Subjective exposure, Objective exposure, Spatial patterns 2 2020 75 2 3 Environmental and Resource Economics 271 295 http://link.springer.com/10.1007/s10640-019-00348-5 text/html Abstract Sandra Rousseau sandra.rousseau@kuleuven.be CEDON - KU Leuven Marieke Franck Artevelde University College Ghent Simon De Jaeger CEDON - KU Leuven
oai:RePEc:kap:enreec:v:75:y:2020:i:2:d:10.1007_s10640-019-00358-32020-02-06RePEc:kap:enreec
article Using Individualised Choice Maps to Capture the Spatial Dimensions of Value Within Choice Experiments Abstract Understanding how the value of environmental goods and services is influenced by their location relative to where people live can help identify the economically optimal spatial distribution of conservation interventions across landscapes. However, capturing these spatial relationships within the confines of a stated preference study has proved challenging. We propose and implement a novel approach to incorporating space within the design and presentation of stated preference choice experiments (CE). Using an investigation of preferences concerning land use change in Great Britain, CE scenarios are presented through individually generated maps, tailored to each respondent’s home location. Each choice situation is generated in real time and is underpinned by spatially tailored experimental designs that reflect current British land uses and incorporate locational attributes relating to physical and administrative dimensions of space. To the best of our knowledge, this represents the first CE study to integrate space into both the survey design and presentation of choice tasks in this way. Presented methodology provides means for testing how presentation of spatial information influence stated preferences. We contrast our spatially explicit (mapped) approach with a commonly applied tabular CE approach finding that the former exhibits a number of desirable characteristics relative to the latter. Choice experiment, Distance decay, Economic valuation, Maps, Spatial and temporal issues, Spatial heterogeneity, Stated preferences, Survey design 2 2020 75 2 4 Environmental and Resource Economics 297 322 http://link.springer.com/10.1007/s10640-019-00358-3 text/html Abstract Tomas Badura t.badura@uea.ac.uk University of East Anglia CzechGlobe – Global Change Research Institute of the Czech Academy of Sciences University of Exeter Business School Silvia Ferrini University of East Anglia University of Siena Michael Burton The University of Western Australia (M089) Amy Binner University of Exeter Business School Ian J. Bateman University of Exeter Business School
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article Substitution Effects in Spatial Discrete Choice Experiments Abstract This paper explores spatial substitution patterns using a choice experiment to estimate the non-market benefits of environmental quality improvements at different sites presented as labelled alternatives. We develop a novel modelling approach to estimate possible disproportional substitution patterns among these alternatives by including cross-effects in site-specific utility functions, combining mixed and universal logit models. The latter model allows for more flexibility in substitution patterns than random parameters and error-components in mixed logit models. The model is relevant to any discrete choice study that compares multiple sites that vary in their comparability and that may be perceived as (imperfect) substitutes. Applying the model in an empirical case study shows that accounting for cross-effects results in a better model fit. We discuss the validity of welfare estimates based on the inclusion of cross-effects. The results demonstrate the importance of accounting for substitution effects in spatial choice models with the aim to inform policy and decision-making. Substitution, Spatial choice experiments, Cross-effects, Universal logit model 2 2020 75 2 5 Environmental and Resource Economics 323 349 Q51 Q25 H41 http://link.springer.com/10.1007/s10640-019-00368-1 text/html Abstract Marije Schaafsma M.Schaafsma@soton.ac.uk University of Southampton Roy Brouwer rbrouwer@uwaterloo.ca University of Waterloo Institute for Environmental Studies, Vrije Universiteit Amsterdam
oai:RePEc:kap:enreec:v:75:y:2020:i:2:d:10.1007_s10640-019-00370-72020-02-06RePEc:kap:enreec
article Modelling Strategies for Discontinuous Distance Decay in Willingness to Pay for Ecosystem Services Abstract Distance decay is a well-known phenomenon affecting welfare measures of localized improvements in environmental quality. We focus on an often overlooked issue in the distance decay literature, namely the modeling of jump discontinuities, i.e. when the willingness to pay distance decay function makes a vertical jump up or down. In an empirical stated choice experiment concerning localized water quality improvements where a toll bridge presents a barrier in the landscape that causes a sudden jump in travel costs, we first estimate individual-specific willingness to pay. We then investigate distance decay in these obtained estimates. We find that the degree of distance decay depends on which type of ecosystem services respondents are primarily motivated by. Besides modelling distance decay with a range of commonly used parametric functional forms, we also test a nonparametric generalized additive model specification. We find only minor differences between the different distance decay specifications, with no generally superior model specification. The nonparametric approach tends to capture distance decay in WTP just as well as any of the parametric specifications, but without requiring the analyst to make assumptions concerning the functional form of the distance decay relationship. Distance decay, Discrete choice experiment, Jump discontinuity, Generalized additive model, Preference heterogeneity, Water quality 2 2020 75 2 6 Environmental and Resource Economics 351 386 http://link.springer.com/10.1007/s10640-019-00370-7 text/html Abstract Søren B. Olsen sobo@ifro.ku.dk University of Copenhagen Cathrine U. Jensen Banedanmark Toke E. Panduro Aarhus University
oai:RePEc:kap:enreec:v:75:y:2020:i:2:d:10.1007_s10640-019-00344-92020-02-06RePEc:kap:enreec
article Antecedent Volition and Spatial Effects: Can Multiple Goal Pursuit Mitigate Distance Decay? Abstract The estimation of choice models that explicitly incorporate economic agents’ goal-related information has yet to receive focused attention from practitioners. Despite recent advances on spatial analysis in stated preference studies, there is still no evidence on how spatial effects interact with goal pursuit. In this study we propose a modelling framework to analyse how goal pursuit influences choices and query whether pursuit of important goals makes individuals less distance-sensitive. We estimate a hybrid choice model with latent variables to investigate the role of goals and distance on preferences for recreational site attributes. We use data from a choice experiment involving selection among different sites in Dolomiti Bellunesi National Park (Italy). Our results show that goal pursuit has a significant effect on site choice probability and that distance disutility is decreased when individuals visit recreational sites due to pursuit of important goals. This result indicates that willingness to pay inferences concerning spatially distributed activities depend crucially on the spatial distribution of motivations for participation. Choice modeling, Demand for outdoor recreation, Goal-based decisions, Hybrid choice model, Spatial analysis 2 2020 75 2 2 Environmental and Resource Economics 243 270 http://link.springer.com/10.1007/s10640-019-00344-9 text/html Abstract Joffre Swait Erasmus University Rotterdam Cristiano Franceschinis University of Padova Mara Thiene mara.thiene@unipd.it University of Padova
oai:RePEc:kap:enreec:v:70:y:2018:i:1:d:10.1007_s10640-017-0111-12018-05-10RePEc:kap:enreec
article Offset Credits in the EU ETS: A Quantile Estimation of Firm-Level Transaction Costs Abstract International carbon offset certificates were cheaper than European Union Allowances, although they were substitutes within the EU Emissions Trading System (EU ETS). Thus, firms had a strong incentive to use offset certificates. However, a considerable number of firms did not exhaust their offset quota and, by doing so, seemingly forwent profits. While most literature on emissions trading evaluates the efficiency of regulation in a frictionless world, in practice firms incur costs when complying with regulation. In order to assess the relevance of trade-related fixed transaction costs, this study examines the use of international offset credits in the EU ETS. It establishes a model of firm decision under fixed (quantity-invariant) entry costs and estimates the size of such costs rationalizing firm behavior using semi-parametric binary quantile regressions. Comparing binary quantile results with probit estimates shows that high average transaction costs result from a strongly skewed underlying distribution. For most firms, the bulk of transaction costs stems from certificate trading in general, rather than additional participation in offset trading. Binary quantile estimation, CDM, Climate change, Carbon emissions trading, Entry costs, EU ETS, Offset certificates, Semi-parametric estimation, Transaction costs 1 2018 70 5 4 Environmental and Resource Economics 77 106 C25 D23 H23 Q58 http://link.springer.com/10.1007/s10640-017-0111-1 text/html Abstract Helene Naegele hnaegele@diw.de Competition and Consumers, DIW Berlin
oai:RePEc:kap:enreec:v:70:y:2018:i:1:d:10.1007_s10640-016-0108-12018-05-10RePEc:kap:enreec
article Coherence, Causality, and Effectiveness of the EU Environmental Policy System: Results of Complementary Statistical and Econometric Analyses Abstract This paper presents the first empirical test of coherence (i.e., consistency of policies within a framework), causality (i.e., logical priority of objectives over policies), and effectiveness (i.e., ability of policies to tackle challenges as defined by objectives) of the overall EU environmental policy system. To do so, I applied complementary statistical (cross-sectional and time series) and econometric (dynamic tri-probit) analyses to an original panel dataset, based on addressed issues (i.e., pollution vs. resource, trans-boundary vs. domestic; flow vs. stock) rather than on implemented policies (i.e., EU legislation aiming at optimal pollution production, optimal resource use, and market competition). It would be impossible to perform similar analyses by referring to realized policies rather than tackled issues due to the unbalanced sample characterizing the former with respect to the latter, as well as due to overlapping objectives, interrelated policies, and non-univocal relationships between objectives and policies. In contrast with previous studies of single EU environmental policies, characteristics of the EU environmental policy, or EU environmental objectives, I found that the overall EU environmental policy system is internally coherent, dynamically causal, and ex ante effective. Moreover, the evidence suggests that many issues are correlated: trans-boundary issues became more relevant in 2012, pollution production was more significant than resource use, and flow issues were more important than stock issues from 1995 to 2010. Finally, I show that few objectives overlapped: a “safe environment” objective (1987–1997) was preferred to a “greenhouse gas (GHG) reduction” objective (2003–2012, but pursued with a 2-year lag), although the latter has recently become preferred to the former. In addition, a “GHG reduction” objective was preferred to “a sustainable development” objective (1998–2002). European Union, Environmental policy, Statistical analyses, Cross-sections, Time-series, Dynamic panel tri-probit 1 2018 70 5 1 Environmental and Resource Economics 1 29 http://link.springer.com/10.1007/s10640-016-0108-1 text/html Abstract Fabio Zagonari fabio.zagonari@unibo.it Università di Bologna
oai:RePEc:kap:enreec:v:70:y:2018:i:1:d:10.1007_s10640-016-0109-02018-05-10RePEc:kap:enreec
article Urban Structure and Environmental Externalities Abstract The objective of this paper is to analyze policy design for air pollution management in the spatial context of urban development. We base our analysis on the paper of Ogawa and Fujita (Reg Sci Urban Econ 12:161–196, 1982), which offers a proper theoretical framework of non-monocentric urban land use using static microeconomic theory where the city structure is endogenous. First, we show that when households internalize industrial pollution in their residential location choice, spatialization within the city is reinforced. This impacts directly the emissions of greenhouse gases from commuting. Then, we analyze policy instruments in order to achieve optimal land use pattern when the policy maker has to manage both industrial and commuting related polluting emissions, that interact through the land market. Environmental externalities, Land use pattern, Air pollution 1 2018 70 5 2 Environmental and Resource Economics 31 52 http://link.springer.com/10.1007/s10640-016-0109-0 text/html Abstract Camille Regnier camille.regnier@inra.fr CESAER, Agrosup Dijon, INRA, Université Bourgogne-Franche-Comté Sophie Legras sophie.legras@inra.fr CESAER, Agrosup Dijon, INRA, Université Bourgogne-Franche-Comté
oai:RePEc:kap:enreec:v:70:y:2018:i:1:d:10.1007_s10640-017-0113-z2018-05-10RePEc:kap:enreec
article Measuring Stigma: The Behavioral Implications of Disgust Abstract Stigmatization of products and technologies can lead to large monetary losses even when there are no associative risks. This paper reports on experiments that provide insight into the behavioral responses of disgust from an economic perspective. We use a dead sterilized cockroach to ‘contaminate’ drinking water and generate willingness-to-pay (WTP) and willingness-to-accept (WTA) measures of participants’ reactions. These results are contrary to previous results from research not involving financial incentives, as most participants’ WTP and WTA values are near zero for drinking cockroach contaminated water. Additionally, filtration of cockroach water leads participants to become significantly more likely to request compensation compared to spring water, but it does not result in requesting significantly more money to drink it. Finally, WTP and WTA differences can be explained by participants’ decision on whether or not to request compensation and not by the amount of compensation. Disgust, Experiments, Stigma, Stigma mitigation, WTA, WTP 1 2018 70 5 6 Environmental and Resource Economics 131 146 C91 D81 http://link.springer.com/10.1007/s10640-017-0113-z text/html Abstract Maik Kecinski kecinski@ualberta.ca University of Alberta Deborah Kerley Keisner dkerley@gmail.com Cornell University Kent D. Messer messer@udel.edu University of Delaware William D. Schulze wds3@cornell.edu Cornell University
oai:RePEc:kap:enreec:v:70:y:2018:i:1:d:10.1007_s10640-017-0110-22018-05-10RePEc:kap:enreec
article Trade in Environmental Goods: Evidences from an Analysis Using Elasticities of Trade Costs Abstract Negotiations on the liberalization of environmental goods (EGs) and services within the WTO Doha Round (mandated in November 2001) are facing specific challenges. Conflicting interests and differing perceptions of the benefits of increased trade in EGs were reflected in different approaches proposed for determining EGs. Using import data of 34 Organisation for Economic Co-operation and Development (OECD) member countries and from a sample of 167 countries, from 1995 to 2012, we discuss the trade effect of reducing barriers on EGs. We analyze the lists of EGs proposed by the Asia-Pacific Economic Cooperation and OECD using a Translog gravity model. We found that removing tariff barriers for EGs will have a modest impact because for the biggest importers and exporters, elasticities of trade costs are very low while for most trading relationships they are very high, making it difficult for exporters to maintain their markets. Overall, our results suggest that, because of their substantial effect on international trade, future negotiations on EGs should also address the issues of standards and nontariff barriers. Environmental goods, Translog, Gravity, Trade costs elasticity, Import share 1 2018 70 5 3 Environmental and Resource Economics 53 75 F11 F12 F15 http://link.springer.com/10.1007/s10640-017-0110-2 text/html Abstract Lota D. Tamini lota.tamini@eac.ulaval.ca Laval University Laval University Zakaria Sorgho zakaria.sorgho@ecn.ulaval.ca Laval University
oai:RePEc:kap:enreec:v:70:y:2018:i:1:d:10.1007_s10640-017-0117-82018-05-10RePEc:kap:enreec
article Technical Synergies and Trade-Offs Between Abatement of Global and Local Air Pollution Abstract In this paper, we explore the synergies and tradeoffs between abatement of global and local pollution. We build a unique dataset of Swedish combined heat and power plants with detailed boiler-level data 2001–2009 on not only production and inputs but also on emissions of $$\hbox {CO}_{2}$$ CO 2 and $$\hbox {NO}_{\mathrm{x}}$$ NO x . Both pollutants are regulated by strict policies in Sweden. $$\hbox {CO}_{2}$$ CO 2 is subject to the European Union Emission Trading Scheme and Swedish carbon taxes; $$\hbox {NO}_{\mathrm{x}}$$ NO x —as a precursor of acid rain and eutrophication—is regulated by a heavy fee. Using a quadratic directional output distance function, we characterize changes in technical efficiency as well as patterns of substitutability in response to the policies mentioned. The fact that generating units face a trade-off between the pollutants indicates the need for policy coordination. Environmental policies, Shadow pricing, Directional distance function, Climate change, Local pollution, Policy interactions 1 2018 70 5 9 Environmental and Resource Economics 191 221 H23 L51 L94 L98 Q48 http://link.springer.com/10.1007/s10640-017-0117-8 text/html Abstract Jorge Bonilla Universidad de los Andes Jessica Coria Jessica.Coria@economics.gu.se University of Gothenburg Thomas Sterner University of Gothenburg
oai:RePEc:kap:enreec:v:70:y:2018:i:1:d:10.1007_s10640-017-0115-x2018-05-10RePEc:kap:enreec
article Preference Heterogeneity in the Structural Estimation of Efficient Pigovian Incentives for Insecticide Spraying to Reduce Malaria Abstract This paper bridges the theoretical and empirical literatures on the role of preference heterogeneity in characterizing externalities related to disease transmission. We use a theoretical structure similar to locational sorting models, which characterize equilibria in terms of marginal individuals who are indifferent between locations. In our case, the ‘locations’ are binary, consisting of whether or not to take a discrete preventative action. Individual heterogeneity arises in this structure due to variation in the costs and disutility associated with prevention. We demonstrate application of this approach in the context of participation in insecticide-based indoor residual spraying programs for malaria control in northern Uganda. We identify the parameters of our theoretical model using a stated preference choice experiment combined with estimates from published epidemiological studies. The model implies that Pigovian subsidies for participation in this context should decrease household malaria risk by 19–25%. Our approach can be applied to other bioeconomic externalities with spillovers from discrete preventative actions, including agricultural pest management and the control of pest infestations and invasive species. Discrete choice models, Preference heterogeneity, Externalities, Pigovian incentives, Malaria, Insecticides, Locational sorting models 1 2018 70 5 8 Environmental and Resource Economics 169 190 D62 H23 Q56 Q58 O13 O15 http://link.springer.com/10.1007/s10640-017-0115-x text/html Abstract Zachary S. Brown zack_brown@ncsu.edu North Carolina State University Randall A. Kramer Duke University
oai:RePEc:kap:enreec:v:70:y:2018:i:1:d:10.1007_s10640-017-0119-62018-05-10RePEc:kap:enreec
article Valuing Global Ecosystem Services: What Do European Experts Say? Applying the Delphi Method to Contingent Valuation of the Amazon Rainforest Abstract Valuing global public goods like the Amazon rainforest by stated preference surveys of a representative sample of the global population would be very costly and time consuming. We explore the use of the Delphi Method in contingent valuation (CV) by asking a panel of 49 European environmental valuation experts in two rounds what they think would be the result if a European CV survey of Amazon Rainforest protection plans was conducted. The experts’ best guess for the mean willingness-to-pay (WTP) by European households for preserving the current Amazon Rainforest, and thus avoiding a predicted loss in forest area by 2050 from currently 85% to 60% of the original forest in the 1970s, was 28 € per household annually as an additional income tax. Aggregated over all European households this amounts to about 8.4 billion € annually. This preliminary estimate indicate that WTP of distant beneficiaries is substantial, and could justify preservation of global ecosystem services where aggregated benefits of the local population often do not exceed the opportunity costs of preservation in terms of lost income from commercial activities. The income elasticity of WTP with respect to per-capita income in the European countries is 0.5–0.6. Recognizing the limitations and assumptions of the Delphi CV method, it could still be a time saving and cost-effective benefit transfer tool for providing international donors with much needed order-of-magnitude estimates of the non-use value of ecosystem services of global significance. Delphi method, Stated preference, Contingent valuation, Global public goods, Amazon rainforest, Ecosystem services, Non-use value, Benefit transfer 1 2018 70 5 11 Environmental and Resource Economics 249 269 Q23 Q51 Q57 http://link.springer.com/10.1007/s10640-017-0119-6 text/html Abstract Ståle Navrud stale.navrud@nmbu.no Norwegian University of Life Sciences Jon Strand The World Bank
oai:RePEc:kap:enreec:v:70:y:2018:i:1:d:10.1007_s10640-017-0120-02018-05-10RePEc:kap:enreec
article Modelling the Effect of Chronic Wasting Disease on Recreational Hunting Site Choice Preferences and Choice Set Formation over Time Abstract Chronic wasting disease (CWD) is a prion disease that affects deer, elk and other cervid wildlife species. Although there is no known link between the consumption of CWD affected meat and human health, hunters are advised to have animals from CWD affected areas tested and are advised against consuming meat from CWD infected animals (Government of Alberta 2010). We model hunter response to the knowledge that deer in a wildlife management unit have been found to have CWD in Alberta, Canada. We examine hunter site choice over two hunting seasons using revealed and stated preference data in models that incorporate preferences, choice set formation, and scale. We compare a fully endogenous choice set model using the independent availability logit model (Swait in Probabilistic choice set formation in transportation demand models. Dissertation, MIT, 1984) with the availability function approach (Cascetta and Papola in Transp Res C 9(4):249–263, 2001) that approximates choice set formation. We find that CWD incidence affects choice set formation and preferences and that ignoring choice set formation would result in biased estimates of impact and welfare measures. This study contributes to the broader recreation demand literature by incorporating choice set formation, scale and temporal impacts into a random utility model of recreation demand. Recreation demand, Random utility models, Combined revealed-stated preferences, Choice set formation 1 2018 70 5 12 Environmental and Resource Economics 271 295 Q26 Q28 http://link.springer.com/10.1007/s10640-017-0120-0 text/html Abstract Thuy Truong truong@dangthuy.net University of Economics Ho Chi Minh City Wiktor Adamowicz vic.adamowicz@ualberta.ca University of Alberta Peter C. Boxall pboxall@ualberta.ca University of Alberta
oai:RePEc:kap:enreec:v:70:y:2018:i:1:d:10.1007_s10640-017-0114-y2018-05-10RePEc:kap:enreec
article On Environmental Regulation of Oligopoly Markets: Emission versus Performance Standards Abstract By specializing Montero’s (J Environ Econ Manag 44:23–44, 2002) model of environmental regulation under Cournot competition to an oligopoly with linear demand and quadratic abatement costs, we extend his comparison of firms incentives to invest in R&D under emission and performance standards by solving for a closed form solution of the underlying two-stage game. This allows for a full comparison of the two instruments in terms of their resulting propensity for R&D and equilibrium industry output. In addition, we incorporate an equilibrium welfare analysis. Finally, we investigate a three-stage game wherein a welfare-maximizing regulator sets a socially optimal emission cap under each policy instrument. For the latter game, while closed-form solutions for the subgame-perfect equilibrium are not possible, we establish numerically that the resulting welfare is always larger under a performance standard. Environmental regulation, Environmental innovation, End of pipe abatement, Emission standard, Performance standard 1 2018 70 5 7 Environmental and Resource Economics 147 167 http://link.springer.com/10.1007/s10640-017-0114-y text/html Abstract Rabah Amir rabah-amir@uiowa.edu University of Iowa Adriana Gama agama@colmex.mx El Colegio de México Katarzyna Werner k.werner@mmu.ac.uk Manchester Metropolitan University
oai:RePEc:kap:enreec:v:70:y:2018:i:1:d:10.1007_s10640-017-0112-02018-05-10RePEc:kap:enreec
article Energy Efficiency Convergence in China: Catch-Up, Lock-In and Regulatory Uniformity Abstract This paper examines alternative hypotheses of beta convergence for different measures of energy efficiency. We collect a novel set of prefecture-level data that substantially extend the breadth of the datasets ever used in this literature. GMM estimators are then used to empirically test the national and club convergence of energy efficiency among these prefectures. We find strong evidence for prefecture-level national and club convergence in energy efficiency. In particular, the listed key environmental protection (KEP) prefectures, prefectures in central and western regions and prefectures not listed as resource-based (RB) converge faster than the non-KEP prefectures, prefectures in eastern region and RB prefectures. Sensitivity analyses suggest that these results are robust to alternative measures of energy efficiency and GMM specifications. Energy efficiency, Club convergence, SBM, EBM, China 1 2018 70 5 5 Environmental and Resource Economics 107 130 C61 Q32 Q43 Q56 Q58 http://link.springer.com/10.1007/s10640-017-0112-0 text/html Abstract Jianhuan Huang Hunan University Yantuan Yu Hunan University Chunbo Ma chunbo.ma@uwa.edu.au University of Western Australia
oai:RePEc:kap:enreec:v:70:y:2018:i:1:d:10.1007_s10640-017-0118-72018-05-10RePEc:kap:enreec
article Trade, Transboundary Pollution, and Foreign Lobbying Abstract In this paper, we explore the use of trade policy in addressing transboundary stock pollution problems such as acid rain and water pollution. We show that a tariff determined by the current level of accumulated pollution can induce the time path of emissions optimal for the downstream (polluted) country. But if the upstream (polluting) country can lobby the downstream government to impose lower tariffs, distortions brought by corruption and foreign lobbying lead to a rise in the upstream country’s social welfare, and to a decrease in social welfare in the downstream country. Thus, the usefulness of trade policy as a tool for encouraging cooperation and internalizing transboundary externalities depends critically on the degree of governments’ susceptibility to foreign political influence. Transboundary pollution, Differential game, Lobbying 1 2018 70 5 10 Environmental and Resource Economics 223 248 D72 F18 F59 Q56 http://link.springer.com/10.1007/s10640-017-0118-7 text/html Abstract Charles F. Mason bambuzlr@uwyo.edu University of Wyoming London School of Economics Victoria I. Umanskaya Occidental College Edward B. Barbier University of Wyoming
oai:RePEc:kap:enreec:v:83:y:2022:i:4:d:10.1007_s10640-022-00732-82022-11-26RePEc:kap:enreec
article The Economics of Biodiversity: Building on the Dasgupta Review 4 2022 83 12 1 Environmental and Resource Economics 909 910 http://link.springer.com/10.1007/s10640-022-00732-8 text/html Abstract Ingmar Schumacher ingmar.schumacher@ipag.fr IPAG Business School
oai:RePEc:kap:enreec:v:83:y:2022:i:4:d:10.1007_s10640-022-00731-92022-11-26RePEc:kap:enreec
article The Economics of Biodiversity: Afterword Abstract This Afterword to The Economics of Biodiversity: The Dasgupta Review discusses (i) the ideas in the Review that have been accepted readily by decision makers and are being put into operation, (ii) those that have been accepted but are judged by decision makers to be unworkable in the contemporary climate, (iii) those that are seen as politically too sensitive even to acknowledge in public. Biosphere, Impact inequality, Population, Inclusive wealth, Biodiversity 4 2022 83 12 7 Environmental and Resource Economics 1017 1039 http://link.springer.com/10.1007/s10640-022-00731-9 text/html Abstract Partha Dasgupta pd10000@cam.ac.uk University of Cambridge
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article Equity and Cost-Effectiveness in Valuation and Action Planning to Preserve Biodiversity Abstract Economic research and frameworks, comprehensively synthesized in “The Economics of Biodiversity: The Dasgupta Review” (Dasgupta 2021), can do much to help stem global biodiversity loss. However, ingrained features of economics as a discipline often produce explanations and solutions for environmental problems that advantage wealthy and powerful entities in our global society rather than those who are poor or otherwise marginalized. This paper highlights two dimensions of economic research related to biodiversity where disciplinary bias can lead to ineffective and inequitable work: biodiversity valuation, and targeting causes of biodiversity loss to be changed. First, it shows how valuation approaches can best be used to inform actions that capture both use and non-use values and include the perspectives and needs of people who are typically marginalized in governance processes. Second, it discusses how global action to preserve biodiversity will be cost-ineffective and inequitable unless we take at least some steps to identify and correct actions taken by wealthy countries and large-scale producers that contribute much to the biodiversity crisis, rather than focusing policy primarily on the behavior of low-income individuals and households. Biodiversity, Climate change, Equity, Population, Valuation, Land use 4 2022 83 12 6 Environmental and Resource Economics 999 1015 http://link.springer.com/10.1007/s10640-022-00674-1 text/html Abstract Amy W. Ando amyando@illinois.edu University of Illinois Urbana-Champaign
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article Protected Area Network Expansion and Management: Economics to improve conservation outcomes Abstract This paper identifies the Dasgupta Review’s key points about the role of protected areas (PAs) in conserving nature. Using these factors as a foundation, this paper explores how economists can conduct analyses that improve PA decisions and promote both biodiversity conservation and ecosystem service provision. People’s interactions with PAs should be considered when making design, management, and restrictions decisions about PAs because those interactions are critical to determining the threats to biodiversity within PAs and the benefits produced by PAs. More effective PAs arise from making joint decisions about PA design, management, permissible human PA uses, and tourism infrastructure because those decisions influence people’s actions – including biodiversity-threatening activities – within PAs. 4 2022 83 12 4 Environmental and Resource Economics 955 972 http://link.springer.com/10.1007/s10640-022-00653-6 text/html Abstract Heidi J. Albers Jo.albers@uwyo.edu Wyoming Excellence Chair in Conservation Economics, University of Wyoming
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article A Biodiversity Hotspots Treaty: The Road not Taken Abstract After brief introductory comments on the Dasgupta Review, I turn to a subject little discussed in this report, the Convention on Biological Diversity. I explain the many weaknesses of this agreement, and its greatest missed opportunity: a protocol to conserve biodiversity as a global public good. This value of biodiversity represents only a fraction of the total value of conservation, but it’s the fraction that can only be supplied by a global treaty. I explain the flaws in the current approach by parties to the Convention of target setting, the advantages of a focus on biodiversity hotspots, and the reasons another treaty, the World Heritage Convention, has failed to conserve hotspots representing humankind’s biodiversity heritage. I then sketch a model showing that collective action in conserving global biodiversity hotspots can be supported by a self-enforcing treaty. The road not taken looks far more promising than the one we’ve been on since 1992. 4 2022 83 12 3 Environmental and Resource Economics 937 954 http://link.springer.com/10.1007/s10640-022-00670-5 text/html Abstract Scott Barrett sb3116@columbia.edu Columbia University
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article The Dasgupta Review and the Problem of Anthropocentrism Abstract As is customary in economics, the Dasgupta Review on the economics of biodiversity adopts an anthropocentric approach: that is, among the millions of species on Earth, the Review accords a moral value to only one species; ours. Building on the literature in ethics, I explain why it is morally problematic to assume that other species—at least, sentient animals—only have an instrumental value for humans. The Review defends its approach, but I advance counter arguments. I highlight that preserving the diversity of life in ecosystems is not the same as taking care of the wellbeing of sentient species living in those ecosystems. Some biodiversity policies, such as protecting the blue whale or reducing meat consumption, largely satisfy both anthropocentric and non-anthropocentric objectives. Other policies, such as the reintroduction of wolves or the eradication of invasive species, induce conflicts between these objectives. I finally discuss why the anthropocentric view remains prevalent in the research on biodiversity and present some potential non-anthropocentric research directions. Biodiversity, Environmental economics, Anthropocentrism, Animal welfare, Sentience, Conservation 4 2022 83 12 5 Environmental and Resource Economics 973 997 Q51 Q20 Q18 I30 Z00 http://link.springer.com/10.1007/s10640-022-00663-4 text/html Abstract Nicolas Treich nicolas.treich@inrae.fr University Toulouse Capitole
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article The Policy Implications of the Dasgupta Review: Land Use Change and Biodiversity Abstract The “Dasgupta Review” of the economics of biodiversity (Dasgupta 2021) identifies many factors that threaten the ecological sustainability of our economies. This article examines how two policy failures - the underpricing and underfunding of nature – influence global land use change and terrestrial biodiversity loss. If natural areas are priced too cheaply, then converting them to agriculture, forestry and other land uses is less costly than protecting or preserving habitats. Underfunding nature further reduces the incentives for conservation and restoration. The current global funding gap for biodiversity is just under $900 billion annually, and especially impacts developing countries. Ending the underpricing of natural landscape requires removing environmentally harmful subsidies and adopting policies that place an additional cost on the use of land and natural resources or on pollution. Overcoming the funding gap means expanding public and private sources of financing nature, particularly for poorer countries, such as biodiversity offsets, payments for ecosystem services, debt-for-nature swaps, green bonds, sustainable supply chains and international environmental agreements. Using the example of peatlands, the article shows how such a comprehensive global strategy can be built. Biodiversity, Climate change, Dasgupta review, Ecosystem services, Land use change, Natural capital, Nature-based solutions, Tropical forests 4 2022 83 12 2 Environmental and Resource Economics 911 935 Q51 Q54 Q57 http://link.springer.com/10.1007/s10640-022-00658-1 text/html Abstract Edward B. Barbier Edward.barbier@colostate.edu Colorado State University
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article The Impact of Renewable Versus Non-renewable Natural Capital on Economic Growth Abstract In a dataset on 83 countries covering the years 1960–2009, we find a negative indirect effect of the share of renewable natural capital in wealth on economic growth transmitted through demographic factors, more specifically, population fertility. In contrast, in countries with lower income inequality and higher institutional quality, the share of non-renewable natural capital in wealth has a direct positive impact on growth. We also find that countries with higher income per capita, human development, and institutional quality have a higher share of renewable natural capital per capita, but a lower share of renewable natural capital in wealth. Renewable natural capital is thus valuable for the population and of primary concern for empowered countries, even though it contributes less to wealth and economic growth. Our results raise serious questions about the way wealth and growth are defined in economics when one investigates the impact of natural capital and point to the importance of preserving natural capital, particularly, in less developed countries. Natural capital, Renewable, Non-renewable, Economic growth 2 2020 77 10 1 Environmental and Resource Economics 271 333 O10 O13 Q20 Q30 Q32 http://link.springer.com/10.1007/s10640-020-00495-0 text/html Abstract Farid Gasmi farid.gasmi@tse-fr.eu University of Toulouse Capitole Laura Recuero Virto laura.recuero-virto@diplomatie.gouv.fr Museum National d’Histoire Naturelle, Ministère des Affaires Etrangères et du Développement International Ecole Polytechnique Denis Couvet denis.couvet@mnhn.fr Museum National d’Histoire Naturelle
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article The Benefit-Cost Ratio as a Decision Criteria When Managing Catastrophes Abstract Previous work has shown that when projects are non-marginal, it creates an interdependence among projects. This implies that policies to manage catastrophes should not be evaluated in isolation but in conjunction with each other. As long as relative risk aversion is sufficiently high, the benefits of averting one catastrophe depend positively on the background risk created by other catastrophes. This specific bias makes it possible to create upper and lower boundaries on the willingness to pay to manage catastrophes and the optimal policy. These boundaries can be used to make inferences on which catastrophes should be averted and not, and in which order. The upper and lower boundaries depend only on the individual catastrophe’s benefit-cost ratio and the coefficient of risk aversion, which both are easy to identify using standard economic frameworks. Multiple catastrophes, Policy measure dependencies, Cost benefit analysis 2 2020 77 10 3 Environmental and Resource Economics 345 363 D61 Q51 Q54 http://link.springer.com/10.1007/s10640-020-00498-x text/html Abstract Kine Josefine Aurland-Bredesen kine.josefine.aurland-bredesen@nmbu.no Norwegian University of Life Sciences
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article Potential for Sustainable Aquaculture: Insights from Discrete Choice Experiments Abstract The growth in global aquaculture production may address the lack of sustainability in wild fisheries, alleviate poverty in rural and coastal areas, and help meet the worldwide increase in demand for animal protein. However, there is an ongoing debate about the severity of the environmental impact of aquaculture production. Investing in new high-tech production systems can address both productivity growth and the environmental externalities, but high investment costs hinder adoption of high-tech production methods. We investigate the potential of a payment for environmental services program easing access to capital for producers to increase willingness-to-invest in more sustainable aquaculture practices in Vietnam. We conducted two discrete choice experiments to explore the supply and demand side of the policy. First, we elicited the public’s willingness-to-pay to reduce the environmental impact of conventional shrimp aquaculture, and second, we elicited farmers willingness-to-accept a credit subsidy to invest in high-tech production methods. Our results show that the public care about reduced environmental impacts, while farmers strongly prefer increased productivity. Furthermore, the public’s willingness-to-pay for reduced environmental impacts exceeds producer’s willingness-to-accept a subsidy to invest under most scenarios. This implies a potential for more sustainable aquaculture production in Vietnam. Discrete choice experiment, Externalities, High-tech production, Shrimp aquaculture, Sustainability 2 2020 77 10 5 Environmental and Resource Economics 401 421 http://link.springer.com/10.1007/s10640-020-00500-6 text/html Abstract Bui Bich Xuan xuanbb@ntu.edu.vn Nha Trang University UiT The Arctic University of Norway Erlend Dancke Sandorf University of Stirling
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article Valuing the Ozone-Related Health Benefits of Methane Emission Controls Abstract Methane is a greenhouse gas that oxidizes to form ground-level ozone, itself a greenhouse gas and a health-harmful air pollutant. Reducing methane emissions will both slow anthropogenic climate change and reduce ozone-related mortality. We estimate the benefits of reducing methane emissions anywhere in the world for ozone-related premature mortality globally and for eight geographic regions. Our methods are consistent with those used by the US Government to estimate the social cost of carbon (SCC). We find that the global short- and long-term premature mortality benefits due to reduced ozone production from methane mitigation are (2011) $790 and $1775 per tonne methane, respectively. These correspond to approximately 70 and 150 % of the valuation of methane’s global climate impacts using the SCC after extrapolating from carbon dioxide to methane using global warming potential estimates. Results for monetized benefits are sensitive to a number of factors, particularly the choice of elasticity to income growth used when calculating the value of a statistical life. The benefits increase for emission years further in the future. Regionally, most of the global mortality benefits accrue in Asia, but 10 % accrue in the United States. This methodology can be used to assess the benefits of methane emission reductions anywhere in the world, including those achieved by national and multinational policies. Methane, Ozone, Mortality, Air pollution, SCC 1 2017 66 1 3 Environmental and Resource Economics 45 63 http://link.springer.com/10.1007/s10640-015-9937-6 text/html Abstract Marcus C. Sarofim Sarofim.marcus@epa.gov U.S. Environmental Protection Agency (USEPA, 6207A) Stephanie T. Waldhoff Stephanie.waldhoff@pnnl.gov Pacific Northwest National Laboratory Susan C. Anenberg susan.anenberg@airhealthanalytics.com Environmental Health Analytics, LLC
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article Market Power in Emission Permit Markets: Theory and Evidence from the EU ETS Abstract A well-known result about market power in emission permit markets is that efficiency can be achieved by full free allocation to the dominant firm. I show that this result breaks down when taking the interaction between input and output markets into account, even if the dominant firm perceives market power in the permit market alone. I then examine the empirical evidence for price manipulation by the ten largest electricity firms during phase I of the EU ETS. I find that some firms’ excess allowance holdings are consistent with strategic price manipulation, and that they cannot be explained by price speculation or by precautionary purchases to insure against uncertain future emissions. My results suggest that market power is likely to be an empirically relevant concern during the early years of emission permit markets. Emission permit markets, Market power, EU ETS, Cost pass-through 1 2017 66 1 5 Environmental and Resource Economics 89 112 H23 H32 Q52 Q53 Q54 Q58 http://link.springer.com/10.1007/s10640-015-9939-4 text/html Abstract Beat Hintermann b.hintermann@unibas.ch University of Basel
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article The Role of Budgetary Information in the Preference for Externality-Correcting Subsidies over Taxes: A Lab Experiment on Public Support Abstract The potential of taxes to correct environmental externalities has long been recognized among economists. Yet, this welfare-enhancing policy commonly faces strong opposition by citizens. Conversely, externality-correcting subsidies frequently enjoy high public support. We conduct a lab experiment to explore public support for Pigouvian taxes and subsidies. In an experimental market with a negative externality, participants vote on the introduction of Pigouvian taxes and subsidies under full or reduced information concerning how the tax revenues will be spent and the subsidy paid for. Theoretically the two instruments should produce identical outcomes. However, we find substantially greater support for subsidies than for taxes. This can partially be explained by the participants’ expectation that the subsidy will increase their own payoffs more than a tax, but not because it is expected to be more effective in changing behavior. Furthermore, we find that with greater uncertainty, the preference for subsidies is even stronger, a result which is consistent with loss aversion. Effectiveness, Lab experiment, Pigouvian taxes, Public policy, Public support, Revenues, Subsidies 1 2017 66 1 1 Environmental and Resource Economics 1 15 http://link.springer.com/10.1007/s10640-015-9929-6 text/html Abstract David R. Heres david.heres@cide.edu Centro de Investigacion y Docencia Economicas (CIDE) Steffen Kallbekken steffen.kallbekken@cicero.oslo.no Centre for International Climate and Environmental Research - Oslo (CICERO) Ibon Galarraga ibon.galarraga@bc3research.org Basque Centre for Climate Change (BC3)
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article Offsetting Versus Mitigation Activities to Reduce $$\hbox {CO}_{2}$$ CO 2 Emissions: A Theoretical and Empirical Analysis for the U.S. and Germany Abstract This paper studies the voluntary provision of public goods that is partially driven by a desire to offset for individual polluting activities. We first extend existing theory and show that offsets allow a reduction in effective environmental pollution levels while not necessarily extending the consumption of a polluting good. We further discuss the impact of an increased environmental preference on purchases of offsets and mitigation activities. Several theoretical results are then econometrically tested using a novel dataset on activities to reduce $$\hbox {CO}_{2}$$ CO 2 emissions for the case of vehicle purchases in the U.S. and Germany. We show that environmental preference triggers the stated use of $$\hbox {CO}_{2}$$ CO 2 offsetting and mitigation channels in both countries. However, we find strong country differences for the stated purchase of $$\hbox {CO}_{2}$$ CO 2 offsets. While such activities are mainly triggered by a high general awareness of the climate change problem in the U.S., the perception that road travel is responsible for $$\hbox {CO}_{2}$$ CO 2 emissions to a large extent is more important for driver’s license holders in Germany. Public good, Voluntary provision, Climate change, $$\hbox {CO}_{2}$$ CO 2 offsetting, Vehicle purchase, Discrete choice models 1 2017 66 1 6 Environmental and Resource Economics 113 133 H41 Q54 http://link.springer.com/10.1007/s10640-015-9944-7 text/html Abstract Andreas Lange andreas.lange@wiso.uni-hamburg.de University of Hamburg Andreas Ziegler andreas.ziegler@uni-kassel.de University of Kassel
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article Tax Exemptions of Ethical Products Revisited Abstract Corporate social responsibility (CSR) activities, being viewed as the corporate’s provision of a public good, enable tax exemptions in many economies. We examine, in a monopoly setup with heterogeneous consumers, with social image concerns, whether these tax exemptions are justified. When private and public investments are substitutes, tax exemptions ought to be accorded to CSR activities, and an ad valorem subsidy is welfare superior to a specific one, only when both consumers’ social consciousness and reputational concerns are sufficiently low and/or when the marginal cost on the private good market is sufficiently high. Otherwise, a positive ad valorem tax is welfare improving as it redistributes surplus from the firm to consumers while increasing total welfare in the process. However, when the firm’s CSR investment complements the government’s provision, tax exemptions appear to be suboptimal relative to a positive tax. Specifically, the relative appeal of specific taxes, compared to ad valorem taxes, increases in consumers’ reputational concerns and the value of the optimal tax decreases in their level of altruism. Corporate social responsibility, Progressive Tax, Consumption norms, Reputation, Ad valorem tax, Specific Tax 2 2020 77 10 6 Environmental and Resource Economics 423 447 http://link.springer.com/10.1007/s10640-020-00502-4 text/html Abstract Dina Kassab dina.kassab@feps.edu.eg Cairo University
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article Water Hauling and Girls’ School Attendance: Some New Evidence from Ghana Abstract In large parts of the world, a lack of home tap water burdens households as the water must be brought to the house from outside, at great expense in terms of effort and time. We here study how such costs affect girls’ schooling in Ghana, with an analysis based on four rounds of the Demographic and Health Surveys. We address potential endogeneity issues by building an artificial panel of clusters using GPS coordinates. Our results indicate a significant negative relation between girls’ school attendance and water hauling activity, as a halving of water fetching times increases girls’ school attendance by about 7 percentage points on average, with stronger impacts in rural communities. Our results seem to be the first definitive documentation of such a relationship in Sub-Saharan Africa. They document some of the multiple and wide population benefits of increased tap water access, that are likely to be relevant in many African countries, and elsewhere. Household water access, Panel data, School attendance, Sub-Saharan Africa 1 2017 66 1 4 Environmental and Resource Economics 65 88 O13 O15 O55 Q25 http://link.springer.com/10.1007/s10640-015-9938-5 text/html Abstract Céline Nauges celine.nauges@toulouse.inra.fr Toulouse School of Economics (INRA-LERNA) The University of Queensland Jon Strand The World Bank
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article The Effect of Carbon Tax on Farm Income: Comment Abstract Olale et al. (Environ Resour Econ 605–623, 2019) argue that the introduction of a carbon tax substantially reduced farm income in the Canadian province of British Columbia. In this comment, we raise serious concerns with their data, empirical methods, and theory. Most importantly, Olale et al. (2019) assume that the difference in farm income between British Columbia and the rest of Canada would have remained constant over time without the introduction of the carbon tax. We provide evidence that this is unlikely to be true and show that their results disappear when we account for differential trends. We conclude that the estimates in Olale et al. (2019) do not represent the effect of a carbon tax on farm income. Carbon tax, Farm-level impacts, Difference-in-differences, British Columbia 2 2020 77 10 2 Environmental and Resource Economics 335 344 http://link.springer.com/10.1007/s10640-020-00497-y text/html Abstract Peter Slade peter.slade@usask.ca University of Saskatchewan Patrick Lloyd-Smith University of Saskatchewan Tristan Skolrud University of Saskatchewan
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article Testing the Assumptions and Predictions of the Hotelling Model Abstract In this paper, we empirically examine whether the assumptions and predictions of the Hotelling model are consistent with patterns observed in data. We consider nonlinear functional forms for the extraction cost and resource demand to develop an empirical Hotelling model with technological progress and stock dependent extraction costs. Using panel data on fourteen nonrenewable natural resources to estimate this empirical Hotelling model, we get qualitatively different results as compared to the related literature. We find evidence of stock-dependent extraction costs for most resources. There is no evidence against the linearity of the optimal extraction rate in the resource stock for almost all resources studied. Furthermore, the Hotelling model may sustain a zero long-run growth rate in resource prices. These results depend on whether firms use different extractive technologies or whether the structural break observed on resource prices is taken into account. Nonrenewable natural resources, Optimal extraction, Resource prices, Hotelling model, Panel data 1 2017 66 1 8 Environmental and Resource Economics 169 203 http://link.springer.com/10.1007/s10640-015-9922-0 text/html Abstract Calvin Atewamba atewamba@unu.edu atewamba@gmail.com Institute for Natural Resources in Africa, United Nations University Bruno Nkuiya bnkuiya@bren.ucsb.edu nkuiyabruno@gmail.com Bren School of Environmental Science and Management, University of California Santa Barbara
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article Testing the Influence of Substitute Sites in Nature Valuation by Using Spatial Discounting Factors Abstract This paper investigates the effect of nearby nature substitute sites on preferences for nature restoration. Contrary to prior studies, we use a respondent-centric approach to control for substitute sites. We assess each respondent-specific spatial context by computing densities of nature substitute sites within various ranges from each respondent’s home. This approach considers the use and non-use values of nature together. Data from three similar discrete choice experiments carried out in Flanders (Belgium) are compared. Different spatial discounting factors are tested to explore how the substitution effect behaves with regard to distance. Latent class analyses are performed to account for preference heterogeneity among respondents. We observe divergent behaviours across groups of respondents. The “distance-to-substitutes” affects how respondents gauge substitute sites. We find a significant influence of the squared average buffer distance but this effect varies in sign across case studies and classes of respondents. Our results demonstrate that individual-specific GIS data can significantly improve the representation of the spatial context and the transferability of value functions. However, the roles played by preference heterogeneity and nature perception on respondents’ capacity to value nature still deserves further attention in future research. Benefit transfer, Discrete choice experiment, Ecosystem services, GIS, Latent class, Nature, Non-market valuation, Spatial, Substitute 1 2017 66 1 2 Environmental and Resource Economics 17 43 Q20 Q26 Q51 Q57 http://link.springer.com/10.1007/s10640-015-9930-0 text/html Abstract Jeremy Valck jeremy.devalck@ees.kuleuven.be KU Leuven Flemish Institute for Technological Research VITO Steven Broekx Flemish Institute for Technological Research VITO Inge Liekens Flemish Institute for Technological Research VITO Joris Aertsens Flemish Institute for Technological Research VITO Liesbet Vranken KU Leuven
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article Heterogeneous Impact of Soil Contamination on Farmland Prices in the Belgian Campine Region: Evidence from Unconditional Quantile Regressions Abstract We estimate a hedonic-pricing model using geo-coded farmland-transaction data from the Campine region, situated in the north-east of Belgium. Unlike previous hedonic studies, we use the method of unconditional quantile regression (Firpo et al., in Econometrica 77(3):953–973, 2009). An important advantage of this new method over the traditional conditional quantile regression (Koenker and Bassett, in Econometrica 46(1):33–50, 1978) is that it allows for the estimation of potentially heterogeneous effects of cadmium pollution along the entire (unconditional) distribution of farmland prices. Using a threshold specification of the hedonic-pricing model, we find evidence of a U-shaped valuation pattern, where cadmium pollution of the soil has a negative and significant impact on prices only in the middle range of the distribution, insofar as cadmium concentrations are above the regulatory standard of 2 parts per million for agricultural land. Results obtained from a probit model to classify land plots into different price segments further suggest that the heterogeneous impact of soil pollution on price can be directly related to the variety of amenities that farmland provides. Hedonic analysis, Cadmium pollution, Farmland prices, Unconditional quantile regression, Non-uniform valuation 1 2017 66 1 7 Environmental and Resource Economics 135 168 http://link.springer.com/10.1007/s10640-015-9945-6 text/html Abstract Ludo Peeters ludo.peeters@uhasselt.be Hasselt University Eloi Schreurs eloi.schreurs@gmail.com Hasselt University Steven Passel steven.vanpassel@uhasselt.be Hasselt University University of Antwerp
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article Leadership and Free-Riding: Decomposing and Explaining the Paradox of Cooperation in International Environmental Agreements Abstract This paper decomposes the canonical model of International Environmental Agreements (Barrett in Oxf Econ Pap 46:878–894, 1994) into three effects: externality, cost-effectiveness and timing. The externality and timing effects are countervailing forces on abatement levels of greenhouse gases. The Paradox of Cooperation in the three-stage Stackelberg game is explained by showing that when the gains to cooperation are small the timing effect dominates the externality effect and large coalitions are stable. The timing effect has the greatest impact when the high benefit nations have low abatement cost. The cost-effectiveness effect arises from asymmetry and generates the need for an agreement with transfers. The cost-effectiveness effect is largest when the high benefit nations are high cost. This creates a larger difference in the marginal abatement cost of the last unit of abatement in the absence of an agreement. Numerical examples illustrate how the parameters and effects interact to result in outcomes ranging from no to full participation. IEAs, Public goods, Stable coalitions, Climate change, Pollution abatement, Asymmetry, Transfers 2 2020 77 10 7 Environmental and Resource Economics 449 474 C7 D7 F5 H4 http://link.springer.com/10.1007/s10640-020-00505-1 text/html Abstract Matthew McGinty mmcginty@uwm.edu University of Wisconsin-Milwaukee
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article Productive Capacity of Biodiversity: Crop Diversity and Permanent Grasslands in Northwestern France Abstract Previous studies on the productive capacity of biodiversity emphasized that greater crop diversity increases crop yields. We examined the influence of two components of agricultural biodiversity—farm-level crop diversity and permanent grasslands—on the production of cereals and milk. We focused on productive interactions between these two biodiversity components, and between them and conventional inputs. Using a variety of estimators (seemingly unrelated regressions and general method of moments, with or without restrictions) and functional forms, we estimated systems of production functions using a sample of 3960 mixed crop-livestock farms from 2002 to 2013 in France. The estimates highlight that increasing permanent grassland proportion increased cereal yields under certain conditions and confirm that increasing crop diversity increases cereal and milk yields. Crop diversity and permanent grasslands can substitute each other and be a substitute for fertilizers and pesticides. Agriculture, Biodiversity, Ecosystem services, Pesticides, Productivity 2 2020 77 10 4 Environmental and Resource Economics 365 399 http://link.springer.com/10.1007/s10640-020-00499-w text/html Abstract François Bareille francois.bareille@inrae.fr Economie Publique, INRAE, Agro Paris Tech, Université Paris-Saclay Pierre Dupraz SMART-LERECO, INRAE
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article Default Risk, Productivity, and the Environment: Theory and Evidence from U.S. Manufacturing Abstract This paper employs a general equilibrium model with heterogeneous firms to analyze the effect of default risk on production-generated pollution emissions. The model analytically divides the effect of default risk into three distinct effects: the market-size, technology-upgrading, and selection effect. Conceptually, an increase in default risk raises equilibrium borrowing costs, thereby precluding investment in a technology upgrade among a subset of firms (technology-upgrading effect). As a consequence, the economy consists of more numerous (market-size effect) but less productive and more pollution-intensive firms (selection effect). Because the effects are confounding in nature, the effect of default risk on aggregate pollution emissions and emissions intensity is an empirical question. To answer this question, this paper estimates the model’s key parameters using a unique dataset with establishment-level credit scores and a composite measure of pollution emissions for a panel of manufacturing firms in the United States. Using a two-step procedure where default risk is estimated in the first stage, the results indicate that the estimated elasticity of emissions intensity and productivity with respect to default risk is 0.89 and − 0.16, respectively. Next, I use the theoretical model to leverage the coefficient estimates to estimate the effect of economy-wide default risk on aggregate pollution emissions, demonstrating that default risk increases aggregate emissions and emissions intensity, primarily as a consequence of the technology-upgrading effect. Finally, this paper demonstrates that historical changes in economy-wide default risk can generate economically significant changes in pollution emissions. Default risk, Pollution emissions, Firm heterogeneity, General equilibrium 4 2020 75 4 1 Environmental and Resource Economics 677 710 D50 L60 Q50 http://link.springer.com/10.1007/s10640-020-00404-5 text/html Abstract Dana C. Andersen dca@ualberta.ca University of Alberta
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article Commodity Consistent Meta-Analysis of Wetland Values: An Illustration for Coastal Marsh Habitat Abstract Prior meta-regression models (MRMs) of wetland values pool value estimates associated with diverse commodity types—for example recreation, flood control, nutrient cycling, habitat provision, nonuse value, and carbon sequestration. Neither theory nor economic intuition justify the inclusion of such dissimilar commodities within a single meta-analytic value function, leading to validity concerns. This article seeks to advance methods for commodity and welfare consistent MRMs, applied to a particular category of wetland values. We develop a wetland value MRM restricted to a specific wetland type (coastal marshes), general location (US and Canada), commodity type (habitat provision and services), and valuation approach (stated preference methods). Results indicate that willingness to pay per household for marsh habitat changes is responsive to scope, spatial scale, market extent, the type of habitat change, household characteristics, and other factors suggested by theory and intuition. Results supersede those of prior wetland value MRMs in terms of statistical performance, estimation of anticipated value surface patterns, and capacity to support conceptually valid benefit transfers. Comparison with an otherwise identical but less commodity consistent MRM demonstrates that commodity consistency leads to improved statistical and benefit transfer performance. Benefit transfer, Meta-analysis, Salt marsh, Stated preference, Valuation, Wetland, Willingness to pay 4 2020 75 4 6 Environmental and Resource Economics 835 865 http://link.springer.com/10.1007/s10640-020-00409-0 text/html Abstract Hermine Vedogbeton hvedogbeton@clarku.edu Clark University Robert J. Johnston rjohnston@clarku.edu Clark University Clark University
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article Public Procurement, Local Labor Markets and Green Technological Change. Evidence from US Commuting Zones Abstract The paper investigates whether and through which channels green public procurement (GPP) and the skills composition stimulate local environmental innovation capacity. We use detailed data sources on green patents and procurement expenditure at the level of US Commuting Zones for the period 2001–2011. We also check for the moderating effects of local labor market composition in the relation between GPP and green innovation capacity. Lastly, we test for differential effects of GPP on different classes of green technologies (GTs). The main finding is that GPP is an important driver for the local generation of GTs. High availability of abstract skills in the local workforce also drives the generation of GTs and magnifies the positive effect of GPP. When separated by type of GTs, we find evidence of a more pronounced effect of GPP on the local generation of mitigation, relative to adaptation, technologies. Green public procurement, Green technology, Innovation policy, Human capital 4 2020 75 4 2 Environmental and Resource Economics 711 739 http://link.springer.com/10.1007/s10640-020-00405-4 text/html Abstract Gianluca Orsatti University of Turin University of Bordeaux Collegio Carlo Alberto François Perruchas INGENIO [CSIC-UPV] Davide Consoli INGENIO [CSIC-UPV] Francesco Quatraro francesco.quatraro@unito.it University of Turin Collegio Carlo Alberto
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article Mean Reversion in CO2 Emissions: the Need for Structural Change Abstract This paper examines stochastic convergence of national and relative per capita CO2 emissions for a wide range of nations. It demonstrates that nearly all series are mean-reverting once allowance is made for non-linearity and the presence of serial correlation. The policy implications are far-reaching since the implication is that mitigation can be accomplished only through structural changes that alter the deterministic paths of emissions. Fractional integration, CO2 emissions, Chebyshev polynomials, Multivariate adaptive regression splines 4 2020 75 4 10 Environmental and Resource Economics 953 975 C22 C32 Q28 Q50 http://link.springer.com/10.1007/s10640-020-00413-4 text/html Abstract Peter S. Sephton Peter.Sephton@Queensu.ca Queen’s University
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article Structural, Innovation and Efficiency Effects of Environmental Regulation: Evidence from China’s Carbon Emissions Trading Pilot Abstract Conventional wisdom argues that environmental regulation can trigger both structural adjustments and enhanced innovation. We test this conjecture by using a difference-in-differences approach to analyze the impacts of China’s carbon emission trading (CET) pilot policy on energy consumption. We find that compliance with the CET regulation has triggered statistically significant adjustments in energy structure, industrial structure, and technological innovation. Adjustments in industrial structure also contribute to enhanced total factor energy efficiency, whereas increased technological innovation has mixed effects on energy efficiency. We show that in the short run, government-led innovation does not immediately contribute to improvement in energy efficiency, whereas enterprise-led innovation has a negative impact. It indicates that CET regulation can affect energy efficiency through industrial structure and technological innovation. Overall, our results provide new evidence for the strong version of the Porter hypothesis. Our results also provide strong scientific support for China’s recent transition towards market-based carbon mitigation strategies. China’s emission trading, Total factor energy efficiency, Porter hypothesis, Difference-in-differences (DID), Difference-in-difference-in-differences (DDD) 4 2020 75 4 3 Environmental and Resource Economics 741 768 Q54 Q56 Q58 http://link.springer.com/10.1007/s10640-020-00406-3 text/html Abstract Cenjie Liu Hunan University Hunan University of Finance and Economics Chunbo Ma University of Western Australia Rui Xie xrxrui@126.com Hunan University
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article Willingness to Pay for $$\hbox {CO}_2$$CO2 Emission Reductions in Passenger Car Transport Abstract Passenger car transportation is a major contributor to global carbon emissions. Despite a range of policy measures, the European passenger car fleet remains largely running on fossil fuels. It is questionable whether the lack of emission reductions can be attributed to a lack of consumer preferences for low-emission cars because consumers may have imperfect information about cars’ emissions and the availability of clean cars remains limited. This paper investigates the preferences of consumers for emission reductions in passenger car transport. We estimate the willingness to pay of passenger car buyers for $$\hbox {CO}_2$$CO2 emission reductions by means of a choice experiment amongst a sample of 1471 individuals that represents the Dutch adult population with the intention to buy a car. The main results are that the mean willingness to pay for emission reductions equals €199 per tonne, and that the majority of individuals is willing to pay more than the current market premium for two selected hybrid types. These results suggest there is a large market potential for emission reductions in passenger car transport. Our findings imply that providing consumers with trustworthy information can be considered a key policy tool for achieving emission reductions in passenger car transport. $$\hbox {CO}_{2}$$ CO 2 emission reductions, Consumer preferences, Discrete-choice experiment, Passenger car transport, Willingness to pay 4 2020 75 4 8 Environmental and Resource Economics 899 929 http://link.springer.com/10.1007/s10640-020-00411-6 text/html Abstract Daan Hulshof d.hulshof@rug.nl University of Groningen Machiel Mulder University of Groningen
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article The Existence Value of a Distinctive Native American Culture: Survival of the Hopi Reservation Abstract We measure the value placed by the American public on ensuring the continued existence of the traditional Hopi culture and way of life at the Hopi Reservation in Arizona. The Hopi are the oldest living culture in the United States. The continued existence of the Reservation is threatened by depletion of the groundwater resource underlying the reservation. In the future, without a new source of water, the Hopi will run out of water to support the villages and continue their traditional Hopi agricultural practices. Many Hopi will have to move off the Reservation and give up their traditional culture and way of life. The Reservation will no longer serve as a permanent home for the Hopi Tribe. An expensive pipeline would be required to convey a new source of water to the Reservation, for which the Federal government might pay. The question is: would the expenditure by the federal government to convey water that would ensure the continued existence of the traditional Hopi culture at the Hopi Reservation be justified by the existence value of that culture to the American people? This paper describes the results of a study undertaken to measure that existence value. We show that a simple stated preference design, using only a single monetary amount, is sufficient to provide a bound. Aboriginal, Contingent valuation, Cultural values, Indigenous cultures, Native American, Water supply 4 2020 75 4 9 Environmental and Resource Economics 931 951 D6 Q25 Q51 Z1 http://link.springer.com/10.1007/s10640-020-00412-5 text/html Abstract Richard T. Carson rcarson@weber.ucsd.edu University of California, San Diego W. Michael Hanemann Michael.Hanemann@asu.edu Arizona State University Dale Whittington profdalewhittington@gmail.com University of North Carolina
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article Can Cleaner Environment Promote International Trade? Environmental Policies as Export Promoting Mechanisms Abstract We examine whether environmental protection enhances international trade in a model of an international duopoly where production uses a depletable resource and generates cross-border pollution, and firms export their output to a world-market. Governments control pollution via either an emission tax, with revenue being used either to finance public pollution abatement or being refunded to the emitting firm contingent on reducing the cost of private pollution abatement (revenue-recycling), or an environmentally related standard. We evaluate these policies in terms of promoting exports, conserving the endowment of the natural resource, reducing pollution, and enhancing welfare. Our results indicate that in most cases, (1) revenue recycling is an export-contracting but resource preserving policy which also encourages firms’ pollution abatement activity, (2) public pollution abatement is an export-promoting but resource depleting policy. When the public sector is efficient in abating pollution, then overall pollution level across countries is lower compared to their level under tax-revenue recycling. Both policies entail ambiguous welfare effects. Environmental standards relative to public abatement is an export-contracting but resource preserving policy. Relative to revenue recycling work in the opposite way; they are always, however, welfare-enhancing. Emission taxation, Public pollution abatement, Recycling tax revenues, Environmentally related standards, International trade 4 2020 75 4 5 Environmental and Resource Economics 809 833 F18 H23 Q58 http://link.springer.com/10.1007/s10640-020-00408-1 text/html Abstract Ioanna Pantelaiou ipantelaiou@aueb.gr Athens University of Economics and Business Panos Hatzipanayotou hatzip@aueb.gr Athens University of Economics and Business CESifo Panagiotis Konstantinou pkonstantinou@aueb.gr Athens University of Economics and Business Anastasios Xepapadeas xepapad@aueb.gr Athens University of Economics and Business University of Bologna
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article Consequences of Protected Areas for Household Forest Extraction, Time Use, and Consumption: Evidence from Nepal Abstract Many forest protected areas (PAs) are located in developing countries, where forests are a major source of food and fuel. Thus, biodiversity conservation may have unintended consequences on welfare of people in local communities. To explore this issue, we examine the effects of the new PAs in Nepal established during 1995–2003. Using the Nepal Living Standard Survey collected in 1995/1996 and 2003/2004, we evaluate the effects of these new PAs on household consumption, wood collection, and time use. Our estimates suggest that the establishment of PAs reduce the average wood collection by 20–40% compared to the period prior to PA establishment, with greater impact when PAs are strictly managed. We find evidence that households adjust to the new PAs with at least modest shifts to fuel purchased in market but not by using fuel conserving stoves, and that PAs are ineffective when climate makes fuelwood for heating essential or if households are in regions with large dependence on wood as a fuel. Finally, while wood collection reductions could lower household welfare, we find no evidence that PAs trigger either large decreases or increases in total consumption or consumption of food. Protected area, Land conservation, Impact evaluation, Nepal, Biodiversity 4 2020 75 4 4 Environmental and Resource Economics 769 808 Q56 Q57 Q58 http://link.springer.com/10.1007/s10640-020-00407-2 text/html Abstract Aparna Howlader howlader@princeton.edu Princeton University Amy W. Ando University of Illinois at Urbana-Champaign Resources for the Future
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article Political Connections and Firm Pollution Behaviour: An Empirical Study Abstract This paper uses Chinese data to examine the link between political connections and pollution discharge by firms. Our empirical results show that political connections are the institutional means by which firms acquire strategic pollution discharge protection. This situation may lead to inadequate enforcement of pollution control regulations. Government officials who are young, of low education, promoted locally, and in office for a relatively long time are more likely to build political connections with polluters. We find that the pollution discharge of politically connected firms also varies considerably due to firm heterogeneity. This study also shows that pollution protection effects caused by political connections are more evident in the Central and Western regions, and capital-intensive industries. Political connections, Pollution discharges, Political promotion, China 4 2020 75 4 7 Environmental and Resource Economics 867 898 Q51 L20 O12 http://link.springer.com/10.1007/s10640-020-00410-7 text/html Abstract Yuping Deng dengyupinghnu@126.com Hunan University University of Western Australia Yanrui Wu yanrui.wu@uwa.edu.au University of Western Australia Helian Xu xuhelian@163.com Hunan University
oai:RePEc:kap:enreec:v:81:y:2022:i:4:d:10.1007_s10640-022-00651-82022-03-24RePEc:kap:enreec
article The Performance of a Repeated Discriminatory Price Auction for Ecosystem Services Abstract Government agencies often rely on repeated discriminatory price auctions to procure ecosystem services from private landowners despite limited evidence on this mechanism’s performance. This study presents an agent-based model of a repeated discriminatory price procurement auction in which the auctioneer informs bidders of their respective bid outcomes and the average price of successful bids after each round. The model introduces a new learning algorithm through which bidders adapt to these price signals. Simulations are used to compare the mechanism’s performance to an equivalent uniform (second) price auction, providing several findings. First, the performance of the discriminatory mechanism tends to deteriorate over time relative to the uniform mechanism as bidders learn. Second, minimal changes in bidders’ price expectations have a large influence on the relative performance of the mechanisms. Third, the discriminatory mechanism maintains high levels of efficiency and cost-effectiveness over time if bidders have highly heterogeneous opportunity costs and neutral or moderately low price expectations. Fourth, the system’s price paths have a high degree of stochasticity and path dependency, making it difficult to predict a single realisation’s trajectory. Based on these findings, we provide several suggestions regarding auction design. Conservation auction, Discriminatory price auction, Uniform price auction, Repeated reverse auction, Agent-based modelling, Simulation 4 2022 81 4 5 Environmental and Resource Economics 787 806 http://link.springer.com/10.1007/s10640-022-00651-8 text/html Abstract David Evans d.evans@csiro.au CSIRO’s Data61 Andrew Reeson andrew.reeson@csiro.au CSIRO’s Data61
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article Ponderous, Proficient or Professional? Survey Experience and Smartphone Effects in Stated Preference Research Abstract Stated preference surveys are increasingly conducted online using internet panel samples, where a fast-growing share of respondents answer on smartphones. These panel members range from novices to “professionals” in terms of previous survey experience. Little is known about the potential effects of smartphone responding and survey experience on the data quality of stated preference surveys. This paper uses a discrete choice experiment dataset on the Norwegian population’s willingness to pay to plant climate forests to explore how these two factors affect data quality. These data by type of response device, gathered using a probability-based internet panel, were combined with a unique dataset obtained from the survey company on respondents’ actual experience answering surveys on different types of devices. Our results show that differences in elicited preferences between smartphone and computer respondents are not caused by the device used, suggesting that initial concerns about smartphone responses may be exaggerated. Furthermore, more experience is associated with an increasing scale parameter (indicating lower error variance), but at a decreasing rate; and a higher propensity to choose the status quo (indicating possible simplifying strategies employed by respondents). Combined this suggest some optimal level of experience that is neither too high nor too low. We discuss the implications of our results for stated preference research and provide a few avenues for future research. Discrete choice experiments, Internet panels, Experienced respondents, Latent class, Scale, Device effects 4 2022 81 4 6 Environmental and Resource Economics 807 832 http://link.springer.com/10.1007/s10640-022-00654-5 text/html Abstract Erlend Dancke Sandorf erlend.dancke.sandorf@nmbu.no Norwegian University of Life Sciences Kristine Grimsrud Research Department, Statistics Norway Henrik Lindhjem Menon Centre for Environmental and Resource Economics Norwegian Institute for Nature Research (NINA)
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article Governments’ Fiscal Squeeze and Firms’ Pollution Emissions: Evidence from a Natural Experiment in China Abstract We investigate whether and how government fiscal squeeze affects local firms’ pollution emissions. To establish causality, we introduce a policy shock in China, namely, the canceling of agricultural taxes in 2005, to document that governments’ fiscal squeeze due to sudden tax decreases substantially increases local firms’ emission by approximately 4%. Mechanism analyses show that local fiscal squeeze result in aggravating pollution emissions through inducing the reduction of firms’ efforts on green innovation and abatement activities. Cross-sectionally, the effects of local government fiscal squeeze on pollution emissions are mitigated by environmental regulation, marketization development, but strengthened by firm financial pressure. Government fiscal squeeze, Agricultural tax reform, Firm emission, Environment quality, China 4 2022 81 4 7 Environmental and Resource Economics 833 866 Q52 Q58 http://link.springer.com/10.1007/s10640-022-00656-3 text/html Abstract Dongmin Kong kongdm@mail.hust.edu.cn Huazhong University of Science and Technology Zhongnan University of Economics and Law Ling Zhu zhuling@hust.edu.cn Huazhong University of Science and Technology
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article Spillover Effects of Grocery Bag Legislation: Evidence of Bag Bans and Bag Fees Abstract We investigate the unintended consequences of carryout grocery bag (CGB) regulations by looking at the impact on sales of alternative plastic bag products. We extend the literature by studying two types of CGB regulations, bag bans and bag fees. Using retail scanner data and employing a general synthetic control method, we find that both types of CGB regulations are associated with significantly higher plastic trash bag sales. We estimate that CGB regulations lead to an average increase in purchased plastics of 127 pounds per store per month, ranging from 30 to 135 (37–224) pounds for 4-gallon (8-gallon) trash bags. These results confirm previous findings on bag bans and provide new evidence on bag fees. In general, the effects do not differ across CGB regulations, but some heterogeneity exists. Our results highlight unintentional spillover effects of narrowly targeted policies on other unregulated waste. Carryout grocery bag regulations, Scanner data, General synthetic control model, Unintentional policy effect 4 2022 81 4 2 Environmental and Resource Economics 711 741 http://link.springer.com/10.1007/s10640-022-00646-5 text/html Abstract Yu-Kai Huang yh53616@uga.edu University of Georgia Texas A&M University Richard T. Woodward Texas A&M University
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article The Role of Non-Binding Pledges in Social Dilemmas with Mitigation and Adaptation Abstract This study presents experimental results on the role that non-binding pledges have on the ability of groups to manage a threat of probabilistic group damages in two separate environments. We focus on an environment where in addition to collective mitigation, agents can work autonomously to protect themselves from the damages if they occur (adaptation). The tension is that mitigation and adaptation investments are strategic substitutes. We test the hypothesis that non-binding pledges are more effective in a world with both mitigation and adaptation strategies, compared to mitigation only. First-period results show that (i) consistent with previous literature, pledges in a mitigation-only environment do not increase average investments in collective mitigation, but (ii) when both mitigation and adaptation opportunities exist, pledges lead to higher investment in collective mitigation, lower investment in adaptation and increased efficiency. Although the average treatment effect disappears over time as the amount pledged decreases, pledges remain significant predictors of mitigation investments over the course of the experiment. Social dilemmas, Economic experiments, Behavioral economics, Public goods, Mitigation, Adaptation, Environmental damages 4 2022 81 4 1 Environmental and Resource Economics 685 710 D9 Q54 H4 C92 http://link.springer.com/10.1007/s10640-021-00645-y text/html Abstract David M. McEvoy mcevoydm@appstate.edu Appalachian State University Tobias Haller University of Innsbruck Esther Blanco University of Innsbruck
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article Forward-Looking Belief Elicitation Enhances Intergenerational Beneficence Abstract One of the challenges in managing the Earth’s common pool resources, such as a livable climate or the supply of safe drinking water, is to motivate successive generations to make the costly effort not to deplete them. In the context of sequential contributions, intergenerational reciprocity dynamically amplifies low past efforts by decreasing successors’ rates of contribution. Unfortunately, the behavioral literature provides few interventions to motivate intergenerational beneficence. We identify a simple intervention that motivates decision makers who receive a low endowment. In a large online experiment with 1378 subjects, we show that asking decision makers to forecast future generations’ actions considerably increases their rate of contribution (from 46% to over 60%). By shifting decision makers’ attention from the immediate past to the future, the intervention is most effective in enhancing intergenerational beneficence of subjects who did not receive a contribution from their predecessors, effectively neutralizing negative intergenerational reciprocity effects. We provide suggestive evidence that the attentional channel is the main channel at work. Behavioral intervention, Intergenerational benevolence, Intergenerational reciprocity, Query theory, Sustainability 4 2022 81 4 3 Environmental and Resource Economics 743 761 http://link.springer.com/10.1007/s10640-022-00648-3 text/html Abstract Valentina Bosetti Università Bocconi RFF-CMCC European Institute on the Economy and the Environment (EIEE) Francis Dennig Yale-NUS College Ning Liu ning.liu.0218@gmail.com Beihang University Beihang University Massimo Tavoni RFF-CMCC European Institute on the Economy and the Environment (EIEE) Politecnico Di Milano Elke U. Weber Princeton University
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article Greenhouse Gas Emission Reduction Potentials in Europe by Sector: A Bootstrap-Based Nonparametric Efficiency Analysis Abstract The reduction of greenhouse gas emissions is the key action to limit global warming. An important source of greenhouse gas emissions and pollution is the inefficiency of production processes. We report results from a stochastic nonparametric efficiency analysis using directional distance functions to take account of undesirable outputs like greenhouse gases. With this approach, we are able to provide estimates of the potential emission reductions for 7 main sectors in 16 European countries. A specially adapted bootstrapping approach allows to implement a bias correction of the estimates and to compute confidence intervals. The results show that static efficiency improvements are a quantitatively important element of the emission reductions which are required to achieve the reduction targets of the European Union. Climate policy, Environmental efficiency, Nonparametric measurement, bootstrapping, Europe 4 2022 81 4 8 Environmental and Resource Economics 867 898 Q54 E23 C14 http://link.springer.com/10.1007/s10640-022-00660-7 text/html Abstract Jens J. Krüger krueger@vwl.tu-darmstadt.de Technical University of Darmstadt Moritz Tarach tarach@vwl.tu-darmstadt.de Technical University of Darmstadt
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article Structural Decomposition Analysis of Japan’s Energy Transitions and Related CO2 Emissions in 2005–2015 Using a Hybrid Input-Output Table Abstract This study investigates Japan’s energy transitions in 2005–2015, which involved massive economic disruptions due to the 2011 Great East Japan earthquake and the Great Recession. A hybrid input-output (IO) table that conforms to the energy conservation condition was newly compiled by integrating the Japanese energy-balance and linked-IO tables. This was employed to conduct a structural decomposition analysis (SDA), which attributes changes in energy consumption and CO2 emissions to the effects of intensity, structure, domestic final demand, and export. These effects were successfully segregated into a profile of energy sources. The results revealed that the structural effect became the dominant driver for decisively reducing energy consumption and emissions of manufacturing and service sectors in the latter period 2011–2015. This suggested that it took time to materialize energy-saving innovations in response to the sudden economic disruptions. Over the entire period, the structural effect was the largest driver contributing to the overall reductions, in part because the other effects tended to cancel out either between energy sources or periods. Therefore, a sensible way to transform Japan to a less energy-intensive, carbon-free society in the future is to improve the non-energy input structures of the manufacturing and service sectors. Climate change, Energy, Fossil fuel, Input-output analysis, Structural decomposition analysis 4 2022 81 4 4 Environmental and Resource Economics 763 786 http://link.springer.com/10.1007/s10640-022-00650-9 text/html Abstract Tatsuki Ueda tued@affrc.go.jp National Agriculture and Food Research Organization
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article Climate Change and Recreation: Evidence from North American Cycling Abstract There is extensive research documenting the economic consequences of climate change, yet our understanding of climate impacts on nonmarket activities remains incomplete. Here, we investigate the effect of weather on recreation demand. Using data from 27 million bicycle trips in 16 North American cities, we estimate how outdoor recreation responds to daily weather fluctuations. We find empirically that cyclists dislike cold temperatures much more than hot temperatures, suggesting potential gains from warming. However, the overall response to extreme heat is mitigated, in part, by intraday adaptation towards recreating during cooler times of day. Combining these estimates with time-use survey data and climate projections, our models suggest annual surplus gains of $894 million from climate-induced cycling by mid-century. Leisure demand, Outdoor recreation, Climate change, Adaptation, Nonmarket damages, Time allocation Environmental and Resource Economics 1 33 J22 Q54 R49 http://link.springer.com/10.1007/s10640-020-00420-5 text/html Abstract Nathan W. Chan nchan@umass.edu University of Massachusetts Amherst Casey J. Wichman wichman@uchicago.edu University of Chicago Energy Policy Institute at the University of Chicago Resources for the Future
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article Can We Love Invasive Species to Death? Creating Efficient Markets for Invasive Species Harvests Abstract Bounties and rebranding are an increasingly popular tool to control or eliminate invasive species that have consumptive values. However, there is concern that such policies will undermine eradication efforts and may exacerbate the spread of these species. We develop and apply an optimal dynamic harvesting model to identify policies that correct market failures associated with commercially valuable invasive species. Competing market failures imply that welfare-enhancing policies may either encourage or discourage harvesting of the invasive species. A species’ dual role as both a pest and commodity creates a nonconvexity that alters incentives to eradicate or exacerbate an invasion. We apply the model to the invasion of silver carp in the United States to show that many current carp subsidies are too low and identify a threshold level of rebranding effectiveness necessary to make rebranding a cost-effective policy choice compared to harvest subsidies. Invasive species, Externalities, Policy Implementation 2 2023 85 6 6 Environmental and Resource Economics 443 477 http://link.springer.com/10.1007/s10640-023-00772-8 text/html Abstract Benjamin Meadows bgmeadow@uab.edu University of Alabama-Birmingham Charles Sims University of Tennessee
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article Floods, Agricultural Production, and Household Welfare: Evidence from Tanzania Abstract Floods affect more than 21 million people yearly, principally in poor countries. Using 3-year panel microdata from Tanzania and satellite flood data, this paper investigates the impacts of two successive large floods on households’ value of crop production, income, expenditures and life satisfaction. Using a kernel weighting difference-in-differences approach, we find a 34% decrease in the value of crop production for households living in affected villages or clusters in the year following the shock. We find no effects on total expenditures or child nutrition, but a significant negative effect on self-employment income and a persistent decrease in life satisfaction. Finally, access to safety nets or transfer income, and to forests in a village appears to have important mitigating effects. Crop production, Welfare, Flooding, Natural disasters, LSMS-ISA, Tanzania 2 2023 85 6 2 Environmental and Resource Economics 341 384 D13 I31 Q12 Q54 http://link.springer.com/10.1007/s10640-023-00769-3 text/html Abstract Berenger Djoumessi Tiague djoum003@umn.edu University of Minnesota – Twin Cities
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article Catastrophic Damages and the Optimal Carbon Tax Under Loss Aversion Abstract Recently, economists have begun to incorporate tipping points and catastrophic events into economy-climate models. It has been shown that the inclusion of tipping points amplifies the economic impacts of climate change and leads to much higher estimates of the social cost of carbon compared to the model that includes only non-catastrophic damages. All the estimates under catastrophic damages come from studies that assume full rationality. However, there is ample evidence that consumers exhibit loss aversion, meaning that they feel losses more strongly than equivalent gains. In this paper, we derive the optimal carbon tax in the Ramsey model under loss aversion and tipping points. We calibrate the model to generate a similar rate of return on capital, and thus pathways of capital and consumption, as a model with rational consumers in the business-as-usual scenario. We find that such a calibrated model generates an optimal carbon tax that is about three times higher than in the model with rational consumers in the optimal (OPT) scenario. A catastrophic event, which reduces the productivity of capital, results in a greater utility loss of loss-averse consumers compared to rational consumers. The optimal tax makes loss-averse consumers increase their precautionary savings before the shock, smoothing their consumption, which reduces welfare loss after the catastrophic event. Carbon tax, Loss aversion, Social cost of carbon, Climate tipping, Precautionary capital 2 2023 85 6 1 Environmental and Resource Economics 303 340 http://link.springer.com/10.1007/s10640-023-00768-4 text/html Abstract Dominika Czyz czyz.dominika@gmail.com Warsaw School of Economics Karolina Safarzynska ksafarzynska@wne.uw.edu.pl Warsaw University
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article Correction to: Spatio-Temporal Analysis of Game Harvests in Sweden 2 2023 85 6 4 Environmental and Resource Economics 409 413 http://link.springer.com/10.1007/s10640-023-00774-6 text/html Abstract Julian E. Lozano julian.lozano@envs.au.dk Swedish University of Agricultural Sciences Södertörn University Aarhus University Katarina Elofsson katarina.elofsson@envs.au.dk Swedish University of Agricultural Sciences Södertörn University Aarhus University Yves Surry yves.surry@slu.se Swedish University of Agricultural Sciences George Marbuah george.marbuah@sei.org Stockholm Environmental Institute
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article Welfare Effects and the Immaterial Costs of Coastal Flooding Abstract A flood can be a severe event, causing not only material damage but also immaterial, such as stress and discomfort. Yet, the risk of flooding may not always be known to house buyers before purchase. In this paper, we estimate the immaterial cost of flood risk from coastal flooding using the hedonic house price approach. The analysis is based on a rich house price dataset that identifies flooded houses using insurance data. The design of the insurance mechanism makes it possible to separate material and immaterial damage as all houses are insured independently of the flood risk. Applying a difference-in-differences design, we study the effect of changes in flood risk information, namely the publication of flood maps, and a flood event in Denmark in 2013. By estimating a time-variant house price function, we can infer the welfare implications of non-marginal changes in flood-risk perception. We find that households have a maximum WTP of 21% of the house price to avoid being flooded after a flood event and that this effect diminishes over time. Houses located in a flood risk zone are sold with an 8.4% price discount but controlling for inundation removes the impact of the flood map. Flood, Flood risk, Climate change, Willingness to pay, Hedonic valuation, Difference-in-differences 2 2023 85 6 5 Environmental and Resource Economics 415 441 http://link.springer.com/10.1007/s10640-023-00771-9 text/html Abstract Marie Lautrup ml@ifro.ku.dk University of Copenhagen Lasse Læbo Matthiesen University of Copenhagen Jette Bredahl Jacobsen University of Copenhagen Toke Emil Panduro Aarhus University
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article Missing the Warning Signs? The Case of “Yellow Air Day” Advisories in Northern Utah Abstract Using a dataset consisting of daily vehicle trips, $$PM_{2.5}$$ P M 2.5 concentrations, and a host of climactic control variables, we test the hypothesis that “yellow air day advisories” issued by the Utah Division of Air Quality resulted in subsequent reductions in vehicle trips taken during northern Utah’s winter-inversion seasons in the early 2000 s. Winter inversions occur in northern Utah when $$PM_{2.5}$$ P M 2.5 concentrations (derived mainly from vehicle emissions) become trapped in the lower atmosphere, leading to unhealthy air quality over a span of time known colloquially as “red air day episodes”. When concentrations rise above 15 $$\upmu \textrm{g}/\textrm{m}^3$$ μ g / m 3 toward the National Ambient Air Quality Standard average daily threshold of 35 $$\upmu \textrm{g}/\textrm{m}^3$$ μ g / m 3 , residents are informed via different media sources and road signage that the region is experiencing a yellow air day, and are urged to reduce their vehicle usage during the day. Our results suggest that the advisories have provided at best weak, at worst perverse, incentives for reducing vehicle usage on yellow air days and ultimately for mitigating the occurrence of red air day episodes during northern Utah’s winter inversion seasons. Air pollution advisory, Vehicle usage, $$PM_{{2.5}} \;{\text{concentrations}}$$ P M 2.5 concentrations, Soft environmental policy 2 2023 85 6 7 Environmental and Resource Economics 479 522 Q53 Q58 http://link.springer.com/10.1007/s10640-023-00773-7 text/html Abstract Arthur J. Caplan arthur.caplan@usu.edu Utah State University
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article Spatio-Temporal Analysis of Game Harvests in Sweden Abstract The benefits and costs of wildlife are contingent on the spatial overlap of animal populations with economic and recreational human activities. By using a production function approach with dynamic spatial panel data models, we analyze the effects of human hunting and carnivore predation pressure on the value of ungulate game harvests. The results show evidence of dynamic spatial dependence in the harvests of roe deer and wild boar, but not in those of moose, which is likely explained by the presence of harvesting quotas for the latter. Results suggest the impact of lynx on roe deer harvesting values is reduced by 75% when spatial effects are taken into account. The spatial analysis confirms that policymakers’ aim to reduce wild boar populations through increased hunting has been successful, an effect that was only visible when considering spatial effects. Wildlife management, Dynamic spatial panel data models, System GMM, Bioeconomic modeling, Swedish biodiversity 2 2023 85 6 3 Environmental and Resource Economics 385 408 Q51 Q57 http://link.springer.com/10.1007/s10640-023-00770-w text/html Abstract Julian E. Lozano julian.lozano@envs.au.dk Swedish University of Agricultural Sciences Södertörn University Aarhus University Katarina Elofsson katarina.elofsson@envs.au.dk Swedish University of Agricultural Sciences Södertörn University Aarhus University Yves Surry yves.surry@slu.se Swedish University of Agricultural Sciences George Marbuah george.marbuah@sei.org Stockholm Environmental Institute
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article The Value of Scattered Greenery in Urban Areas: A Hedonic Analysis in Japan Abstract This study investigates the impact of scattered greenery (street trees and yard bushes), rather than cohesive greenery (parks and forests), on housing prices. We identify urban green space from high-resolution satellite images and combine these data with data on both condominium sales and rentals to estimate hedonic pricing models. We find that scattered urban greenery within 100 m significantly increases housing prices, while more distant scattered greenery does not. Scattered greenery is highly valued near highways, and the prices of inexpensive and small for-sale and for-rent properties are less affected by scattered greenery. These results indicate that there is significant heterogeneity in urban greenery preferences by property characteristics and location. This heterogeneity in preferences for greenery could lead to environmental gentrification since the number of more expensive properties increases in areas with more green amenities. Environmental amenities, Urban greenness, Hedonic housing price model, Housing value, Remote sensing 2 2023 85 6 8 Environmental and Resource Economics 523 586 Q51 R3 R21 Q57 http://link.springer.com/10.1007/s10640-023-00775-5 text/html Abstract Yuta Kuroda kuroyu0725@gmail.com Osaka Metropolitan University Takeru Sugasawa takeru.sugasawa@gmail.com Housing Research and Advancement Foundation of Japan
oai:RePEc:kap:enreec:v::y::i::d:10.1007_s10640-020-00422-32020-04-19RePEc:kap:enreec
article The EAERE Celebrates Its 30th Anniversary Abstract The European Association of Environmental and Resource Economists started around 1990 and celebrates its 30th anniversary this year. The rise of environmental concerns and the wish for more cooperation between scientists within Europe, plus the drive of a few highly motivated people, led to the foundation of this academic institution. This article aims at clarifying the initial steps and the development of this highly successful association. The relationship between economics and the environment is core for the future of our world, and the EAERE was crucial in developing this field. The EAERE has been a stimulus and a home for many scientists who were interested to work in this field and who would otherwise have been quite isolated. The future of the EAERE is bright if it manages to bridge new developments in economics and in the natural sciences, and between academics and policy. EAERE, Environmental economics, Resource economics Environmental and Resource Economics 1 10 http://link.springer.com/10.1007/s10640-020-00422-3 text/html Abstract Aart Zeeuw A.J.deZeeuw@uvt.nl Tilburg University Royal Swedish Academy of Sciences
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article Productivity and Management of Renewable Resources: Why More Efficient Fishing Fleets Should Fish Less Abstract This article analyses the effect of productivity improvements on optimal fisheries management. It is shown that when harvest costs are independent of resource stock and the stock is below its steady state level, then for any given stock it is optimal to reduce harvest levels in response to a productivity increase unless optimal harvest rate is already zero. If harvest costs are stock dependent this result is modified; for stock dependent harvest costs there exists an interval of stock sizes below the steady state where it is optimal to reduce the harvest rate for any given stock size whereas if the harvest rate is close to an economically optimal steady state it is optimal to increase the harvest rate. Fisheries, Optimal control, Productivity, Renewable resources 3 2022 81 3 1 Environmental and Resource Economics 409 424 C61 Q22 http://link.springer.com/10.1007/s10640-021-00633-2 text/html Abstract Eric Nævdal eric.navdal@frisch.uio.no University of Oslo
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article Heterogeneous Domestic Intermediate Input-Related Carbon Emissions in China’s Exports Abstract Domestic intermediate input-related carbon emissions (DII-CEs) are present in high amounts and have significant reduction potential. Reducing the DII-CE is becoming a priority as part of decarbonizing China’s exports. Previous studies have not addressed the significant heterogeneity of DII-CE components stemming from different inter-sector production linkages. This study applies an integrated analysis framework to characterize the heterogeneous DII-CE components. We identify the composition of sector-level DII-CE responsibilities, and verify the emission hotspots, driving forces, and emission rebound effects across heterogeneous DII-CE components in China’s exports from 1997–2017. The study reveals the following key findings: (1) The proportion of DII-CEs increased from 82.27% to 86.29% in China’s exports; and Telecommunication and electronic equipment (MS20), Chemicals (MS12), and Electric equipment and machinery (MS19) evolved as the three primary DII-CE contributors. (2) Based on the evolution of sector-level DII-CEs, 11 crucial export sectors are identified. (3) Along with the spillover component, the feedback component is another potential crucial source of sector-level DII-CEs. (4) The role of the emission coefficient in determining DII-CE reduction has been replaced by the production mix, which has not achieved its full reduction potential. (5) Rebound mitigation measures are needed for all DII-CE components of crucial export sectors, particularly for their internal components, which have exhibited a strong backfire effect. Domestic intermediate input-related carbon emissions, Subsystem analysis, Structural decomposition analysis, Emission rebound effect, China’s exports 3 2022 81 3 3 Environmental and Resource Economics 453 479 http://link.springer.com/10.1007/s10640-021-00635-0 text/html Abstract Wei Zhen zhenweiperfect@163.com Zhejiang University of Finance and Economics Quande Qin qinquande@gmail.com Shenzhen University Beijing Institute of Technology Lei Jiang Zhejiang University of Finance and Economics
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article Valuation of Wetland Restoration: Evidence from the Housing Market in Arkansas Abstract This paper investigates the impact of the Wetland Reserve Program utilizing the residential housing and wetland easement data to estimate the benefit of wetland restoration in Arkansas. The environmental benefits of alternative agricultural management practices are underestimated and largely ignored by agriculture producers and beneficiaries. Governments at various levels have developed programs to provide appropriate economic incentives to optimize agricultural production and environmental benefits. Based on a quasi-experimental approach and an event study design, our results indicated that there is a statistically significant increase in property values near the wetland restoration sites and the estimated increase ranges from 6% to 10%. Wetlands restoration, Non-market valuation, Conservation program, Public goods, Housing market 3 2022 81 3 10 Environmental and Resource Economics 649 683 Q15 Q18 Q57 Q58 http://link.springer.com/10.1007/s10640-021-00643-0 text/html Abstract Matthew Richardson mattrich2387@ufl.edu University of Arkansas at Pine Bluff University of Florida Pengfei Liu pengfei_liu@uri.edu University of Rhode Island Michael Eggleton eggletonm@uapb.edu University of Arkansas at Pine Bluff
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article The Power of Nudging: Using Feedback, Competition, and Responsibility Assignment to Save Electricity in a Non-residential Setting Abstract Can behavioural interventions achieve energy savings in non-residential settings where users do not face the financial consequences of their behaviour? Our paper addresses this question by using high-frequency data, leveraging social comparison and responsibility assignment in a large provincial government office building with 24 floors, a total of 1008 occupants. Floors were divided into two treatments arms and a control group. Both treatment groups received regular emails encouraging recipients to turn off appliances and lights before leaving the office and weekly ranked energy consumption results by floors. Additionally, weekly "energy advocates" were assigned to each floor in treatment group two. Floors assigned to the control group received no intervention. Findings show that floors that participated only in the inter-floor competitions reduced energy consumption by 8%, 95% CI [− 0.41, − 0.02] while those additionally assigned floor-wise "energy advocates" reduced energy consumption by 13%, 95% CI [− 0.62, − 0.05] with a substantial reduction in energy use occurring after working hours. Results, however, show no statistical difference in energy consumption between treatment groups one and two. We further investigate the intervention effect for the monthly cumulative post-intervention period. Additional qualitative interviews were conducted to enable a better understanding of our results. Energy conservation, Behavioural nudges, Social competition, Randomized control trials 3 2022 81 3 7 Environmental and Resource Economics 573 589 http://link.springer.com/10.1007/s10640-021-00639-w text/html Abstract Rebecca Afua Klege rebecca.klege@alumni.uct.ac.za rebeccaklege@gmail.com University of Cape Town Henry J Austin Health Center Martine Visser University of Cape Town Saugato Datta Ideas42 Matthew Darling Ideas42
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article Optimal Management of a Renewable Resource Under Multiple Regimes Abstract Resource industries may be subject to regime shifts in environmental as well as economic conditions. Regime shifts in different dimensions require carefully calculated policies that reflect probabilities and welfare effects. In a simple model, I extend the established approach to regime shifts to consider the combined effects of regimes in multiple dimensions. I consider both exogenous and endogenous risks of regime shifts in cases of both observable and unobservable regimes. The unique model has a nonlinear objective function, and model solutions are established via recent developments in optimization that invoke a vector-valued value function. Adaptive management, Bioeconomics, Regime shifts, Uncertainty 3 2022 81 3 4 Environmental and Resource Economics 481 499 http://link.springer.com/10.1007/s10640-021-00636-z text/html Abstract Sturla F. Kvamsdal sturla.kvamsdal@snf.no SNF – Centre for Applied Research at NHH
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article Leveraging the Honor Code: Public Goods Contributions under Oath Abstract Public good games are at the core of many environmental challenges. In such social dilemmas, a large share of people endorse the norm of reciprocity. A growing literature complements this finding with the observation that many players exhibit a self-serving bias in reciprocation: “weak reciprocators” increase their contributions as a function of the effort level of the other players, but less than proportionally. In this paper, we build upon a growing literature on truth-telling to argue that weak reciprocity might be best conceived not as a preference, but rather as a symptom of an internal trade-off at the player level between (i) the truthful revelation of their private reciprocal preference, and (ii) the economic incentives they face (which foster free-riding). In truth-telling experiments, many players misrepresent private information when this is to their material benefit, but to a significantly lesser extent than what would be expected based on the profit-maximizing strategy. We apply this behavioral insight to strategic situations, and test whether the preference revelation properties of the classic voluntary contribution game can be improved by offering players the possibility to sign a classic truth-telling oath. Our results suggest that the honesty oath helps increase cooperation (by 33% in our experiment). Subjects under oath contribute in a way which is more consistent with (i) the contribution they expect from the other players and (ii) their normative views about the right contribution level. As a result, the distribution of social types elicited under oath differs from the one observed in the baseline: some free-riders, and many weak reciprocators, now behave as pure reciprocators. Truth-telling oath, Public goods, Social preferences, Reciprocity, Cooperation 3 2022 81 3 8 Environmental and Resource Economics 591 616 C72 D83 http://link.springer.com/10.1007/s10640-021-00641-2 text/html Abstract Jérôme Hergueux jerome.hergueux@gess.ethz.ch Strasbourg, France and ETH Zurich, Center for Law and Economics Nicolas Jacquemet Nicolas.Jacquemet@univ-paris1.fr Paris School of Economics and Université Paris 1 Panthéon-Sorbonne. Centre d’Economie de la Sorbonne (CES) Stéphane Luchini stephane.luchini@univ-amu.fr Aix-Marseille Univ. (Aix-Marseille School of Economics) and CNRS Jason F. Shogren JRamses@uwyo.edu University of Wyoming
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article Greenhouse Gas Emissions and Eco-Performance at Farm Level: A Parametric Approach Abstract Agriculture is an important source of greenhouse gas (GHG) emissions and thus contributes considerably to global warming. However, farms can vary substantially in terms of their climatic impact. So far, most policies aiming at reducing GHG emissions from farming have largely been based on findings at the aggregate level, without taking farm heterogeneity properly into account. This study seeks to provide a better understanding of the GHG mitigation potential at the micro-level. We develop a comprehensible analytical framework for analyzing economic-ecological performance by way of stochastic frontier analysis. We introduce the concept of emission efficiency, where we distinguish between persistent and time-varying efficiency. We further analyze farms with respect to their emission-performance dynamics. Results from our (2005–2014) empirical application from Bavaria—an important region for the EU – show considerable differences in farm-level GHG emissions across different farm types. The same applies to emission efficiencies. Overall, emission performance improved over time. The results have important climate-policy implications as they help to provide better target measures for mitigating GHG emissions from agriculture, without compromising economic performance levels. Agricultural greenhouse gas emissions, Climate change mitigation, Eco-performance decomposition, Economic-ecological efficiency, Stochastic frontier analysis 3 2022 81 3 9 Environmental and Resource Economics 617 647 http://link.springer.com/10.1007/s10640-021-00642-1 text/html Abstract Christian Stetter christian.stetter@tum.de Technical University of Munich Johannes Sauer jo.sauer@tum.de Technical University of Munich
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article Managing Marine Mammals and Fisheries: A Calibrated Programming Model for the Seal-Fishery Interaction in Sweden Abstract This paper develops a model based on the concept of Positive Mathematical Programming (PMP) that is useful for ex-ante analyses of how policy measures affect commercial fisheries. PMP models are frequently used in agriculture, but rarely for analyzing fisheries. Fisheries often face a large set of constraints such as effort regulations and catch quotas of which some might be binding and others not. An econometric approach is developed for calibrating models with both binding and non-binding constraints. The interaction between seals and Swedish fisheries is used as an empirical application. Seal interaction is modeled as seals predating fish from passive gear (nets and hooks), which is primarily an issue for the coastal fishery. The model contains 24 fleet segments involved in 247 different fishing activities in 2012. The results show that if no further management action is taken, fisheries using passive gear will reduce their activities from about 46 000 days at sea per year to about 41 000 and reducing their economic performance from losses of about 2 million Euros to about 3.3 million. The impact from seals can be reduced by reducing the seal population or providing economic compensation. Fisheries, Marine mammals, Positive mathematical programming 3 2022 81 3 5 Environmental and Resource Economics 501 530 http://link.springer.com/10.1007/s10640-021-00637-y text/html Abstract Torbjörn Jansson torbjorn.jansson@slu.se Swedish University of Agricultural Sciences Staffan Waldo staffan.waldo@slu.se Swedish University of Agricultural Sciences
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article An Experimental Analysis of the Effects of Imperfect Compliance on Technology Adoption Abstract We present the results of an experimental investigation on incentives to adopt cleaner abatement technologies in the presence of imperfect compliance. We consider two emission control instruments—emission taxes and tradable permits—as well as different combinations of the inspection probability and fine for non-compliance, which can result in full or weak enforcement scenarios. We review and qualify existing theoretical predictions in several ways and find the main result is that allowing for weak enforcement causes tax evasion, reductions in permit prices and lower adoption rates of cleaner abatement technologies. As a result, there are increases in aggregate emissions. Finally, treatments with tradable permits under weak enforcement encounter insufficient trading. Abatement Technology, Auction, Environmental policy, Monitoring, Non-compliance, Permit, Taxes 3 2022 81 3 2 Environmental and Resource Economics 425 451 C92 K42 L51 Q28 Q55 http://link.springer.com/10.1007/s10640-021-00634-1 text/html Abstract Lidia Vidal-Meliá Universitat Jaume I Carmen Arguedas Universidad Autónoma de Madrid Eva Camacho-Cuena camacho@uji.es Universitat Jaume I José Luis Zofío Universidad Autónoma de Madrid Erasmus University
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article Exploring Different Assumptions about Outcome-Related Risk Perceptions in Discrete Choice Experiments Abstract Environmental outcomes are often affected by the stochastic nature of the environment and ecosystem, as well as the effectiveness of governmental policy in combination with human activities. Incorporating information about risk in discrete choice experiments has been suggested to enhance survey credibility. Although some studies have incorporated risk in the design and treated it as either the weights of the corresponding environmental outcomes or as a stand-alone factor, little research has discussed the implications of those behavioural assumptions under risk and explored individuals’ outcome-related risk perceptions in a context where environmental outcomes can be either described as improvement or deterioration. This paper investigates outcome-related risk perceptions for environmental outcomes in the gain and loss domains together and examines differences in choices about air quality changes in China using a discrete choice experiment. Results suggest that respondents consider the information of risk in both domains, and their elicited behavioural patterns are best described by direct risk aversion, which states that individuals obtain disutility directly from the increasing risk regardless of the associated environmental outcomes. We discuss the implication of our results and provide recommendations on the choice of model specification when incorporating risk. Air quality, Direct risk aversion, Discrete choice experiment, Outcome-related risk perceptions, Prospect theory 3 2022 81 3 6 Environmental and Resource Economics 531 572 http://link.springer.com/10.1007/s10640-021-00638-x text/html Abstract Hangjian Wu hw2n14@soton.ac.uk University of Aberdeen Emmanouil Mentzakis University of Southampton Marije Schaafsma VU University Amsterdam
oai:RePEc:kap:enreec:v:84:y:2023:i:1:d:10.1007_s10640-022-00717-72023-01-07RePEc:kap:enreec
article The More the Merrier? Evidence from Firm-Level Exports and Environmental Performance in China Abstract Existing literature supports that exporting firms have better environmental performance. An interesting question thereby arises: the more exports, the better? To answer this question, we develop a method to decompose firm-level pollution emissions, and empirically investigate the relationship between export intensity and environmental performance using Chinese firm-level data. Our results indicate that the answer to this question is “No”. First, OLS estimation shows that firms with higher export intensity have less pollution emissions, mainly because of smaller output scale and lower energy intensity (energy-to-labor ratio) rather than more advanced technologies. Second, we focus on PSM-DID estimation and find that only the increase in export intensity by a smaller extent is conducive to improving firms’ environmental performance. This effect is driven by decreasing energy intensity and thereby improving energy efficiency. This finding implies that firms should focus on both domestic and foreign markets, when they improve export participation. Third, those relationships are found to be heterogeneous across the firms in terms of different pollutants, ownership types, industrial sectors and provinces. In particular, mainly for private and foreign-funded firms, technology-intensive sectors and coastal provinces, increasing export intensity can improve environmental performance. Our study provides an in-depth empirical evidence on the relationship between export intensity and environmental performance in China, and provides a new insight and a better understanding for exports and environment from a micro perspective. Export intensity, Environmental performance, Pollution emissions, Heterogeneous firms 1 2023 84 1 6 Environmental and Resource Economics 125 172 http://link.springer.com/10.1007/s10640-022-00717-7 text/html Abstract Xi Lin Guangzhou University Ling-Yun He lyhe@amss.ac.cn Jinan University
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article Altruistic Foreign Aid and Climate Change Mitigation Abstract This paper considers one altruistic developed country and several heterogeneous developing countries. We demonstrate that the lack of coordination between countries in tackling climate change finds an optimal solution if developing countries can expect to receive development aid transfers from the developed country. The mechanism requires a sufficiently high level of altruism and specific timing, but a global coalition is not necessary. We also show that the developed country may democratically assign a delegate who is more altruistic than its median voter in order to benefit from the efficiency gain generated by positive development aid transfers. Altruism, Climate change, Development aid, International policies, Public good 1 2023 84 1 8 Environmental and Resource Economics 219 239 D62 D64 F35 F53 Q54 http://link.springer.com/10.1007/s10640-022-00722-w text/html Abstract Arnaud Goussebaïle agoussebaile@ethz.ch ETH Zurich Antoine Bommier abommier@ethz.ch ETH Zurich Amélie Goerger agoerger@ethz.ch ETH Zurich Jean-Philippe Nicolaï jean-philippe.nicolai@grenoble-inp.fr Univ. Grenoble Alpes, CNRS, INRAE, Grenoble INP, GAEL
oai:RePEc:kap:enreec:v:84:y:2023:i:1:d:10.1007_s10640-022-00692-z2023-01-07RePEc:kap:enreec
article Distance and Regional Effects on the Value of Wild Bee Conservation Abstract Many wild bee species are threatened across Europe, and with them the pollination function they provide. While numerous studies have assessed the value of bees as pollinators of crops, little is known about the non-marked value of bees. Using a choice modelling experiment, we examine these non-market values in Germany by identifying citizens’ willingness to pay (WTP) for wild bee conservation initiatives in four states. Effects of distance, state and regional affiliation are scrutinised, as previous research found these to affect respondents’ choices. Random parameter logit and latent class models are used to capture preference heterogeneity. Overall, we find strong support of wild bee conservation and a clear preference for improvement relative to the status quo, particularly in natural areas and for rare or endangered species. The yearly WTP for conservation initiatives ranges from 227 to 447€ per household. Our results show distance and regional effects on WTP. Initiatives in respondents’ home states are preferred, and increasing distance to initiatives in other states result in a slightly reduced WTP. Additionally, we observe regional preferences within an eastern and a western home region. These preferences are not explainable by socio-demographic characteristics, home state or distance and probably linked to social and cultural affiliations. We conclude that for widespread support in society and effective conservation initiatives, policy proposals must address this spatial heterogeneity from distance and regional effects. Choice experiment, Distance effect, Latent class, Non-market valuation, Random parameter logit, Regional identity, Biodiversity 1 2023 84 1 3 Environmental and Resource Economics 37 63 http://link.springer.com/10.1007/s10640-022-00692-z text/html Abstract Céline Moreaux celine.moreaux@gmx.net University of Copenhagen University of Copenhagen Basque Centre for Climate Change (BC3) Jette Bredahl Jacobsen jbj@ifro.ku.dk University of Copenhagen University of Copenhagen Jürgen Meyerhoff juergen.meyerhoff@hwr-berlin.de Berlin School of Economics and Law Bo Dalsgaard bo.dalsgaard@sund.ku.dk University of Copenhagen Globe Institute Carsten Rahbek crahbek@sund.ku.dk University of Copenhagen Imperial College London University of Southern Denmark Niels Strange nst@ifro.ku.dk University of Copenhagen University of Copenhagen
oai:RePEc:kap:enreec:v:84:y:2023:i:1:d:10.1007_s10640-022-00737-32023-01-07RePEc:kap:enreec
article Correction to: Effects of Early Childhood Exposure to Pollution on Crime: Evidence from 1970 Clean Air Act 1 2023 84 1 11 Environmental and Resource Economics 313 313 http://link.springer.com/10.1007/s10640-022-00737-3 text/html Abstract Divya Sadana sadanad@uwec.edu University of Wisconsin - Eau Claire
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article Assessing the Economic Implications of Free Trade on Environmental Quality: Empirical Evidence from Africa Abstract Free trade has been identified as an effective conduit for enhancing economic growth and development. However, encouraging free trade has several environmental implications. As African countries commit to implementing the African Continental Free Trade Area (AfCFTA) agreement, the need arises for research to be conducted into assessing the implications of the expected increase in free trade on the environment. It is against this backdrop, as well as the paucity of literature in the subject area, that the study seeks to assess the economic implications of free trade arising from preferential trade agreements (PTAs) on environmental quality in Africa. The study further attempts to establish the effect of institutional quality on environmental quality in Africa. The study’s theoretical framework is based on the trade-environment nexus model developed by Antweiler (AER 91:877–908, 2001) and employs the panel ARDL model for analysis, using data on thirty African countries, over the period 1990–2016. Findings from the study revealed that negative trade-induced scale effect and composition effect dominates the positive trade-induced technique, thereby, suggesting that free trade is detrimental to environment quality in the long-run, using natural resource depletion and carbon dioxide as measures of environmental quality. The study further found improvement in institutional quality (through enhancement in regulatory quality) to have a positive effect on environmental quality. The study recommends that afforestation policies should form an integral part of governments’ developmental agenda in Africa. Also, government policies should be geared towards encouraging businesses to adopt green technologies, whereas households are motivated to employ and sustain the use of clean energy. Free trade, Environmental quality, CO2, Natural resource depletion, Panel ARDL 1 2023 84 1 2 Environmental and Resource Economics 19 36 Q00 Q56 http://link.springer.com/10.1007/s10640-022-00738-2 text/html Abstract William Bekoe wbekoe80@yahoo.com University of Ghana Talatu Jalloh University of Ghana
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article Sustainable Intensification Farming as an Enabler for Farm Eco-Efficiency? Abstract Sustainable Intensification (SI) practices offer adopters exploiting improvement potentials in environmental performance of farming, i.e. enhance ecosystem functionality, while maintaining productivity. This paper proposes a directional meta-frontier approach for measuring farms’ eco-efficiency and respective improvement potentials in the direction of farms’ ecological output for SI evaluation. We account for farms’ selection processes into SI using a behavioural model and rely on a matched sample for adopters and non-adopters of agronomic SI practices from the northern German Plain. We conclude that the SI adopters determined the sample’s system frontier and showed higher mean eco-efficiency, but that most farms in our sample did not fully exploit the improvement potentials in biodiversity as ecological outcome. Sustainable intensification concept, Directional data envelopment analysis, Eco-efficiency, Environmental sustainability, Matching, Meta-frontier 1 2023 84 1 12 Environmental and Resource Economics 315 342 Q12 Q15 Q57 http://link.springer.com/10.1007/s10640-022-00718-6 text/html Abstract Meike Weltin meike.weltin@zalf.de Leibniz Centre for Agricultural Landscape Research (ZALF) Silke Hüttel silke.huettel@uni-goettingen.de Georg-August-Universität Göttingen
oai:RePEc:kap:enreec:v:84:y:2023:i:1:d:10.1007_s10640-022-00706-w2023-01-07RePEc:kap:enreec
article Creatively Destructive Hurricanes: Do Disasters Spark Innovation? Abstract We investigate whether disasters can lead to innovation. We construct a US county-level panel of hurricane damages using climate data, hurricane tracks, and a wind field model and match these to patent applications by the location of their inventor over the last century in the United States. We examine both general innovation and patents that explicitly mention the terms ’hurricane’ or ’storm.’ In line with the current literature that hypothesizes innovative activity driven by shocks, in particular innovation intended to mitigate future shocks, we find that hurricanes lead to temporary boost in damage-mitigating patents a few years after the event. However, we also show there is long-term, lasting over two decades, general reduction of innovation after a damaging storm. We conclude that hurricanes, and possibly other types of disasters, cannot be viewed as a ’benefit in disguise, ’ and that these events are unlikely to generate longer-term beneficial dynamics in an adversely affected location. Creative destruction, Hurricanes, Patents, US counties 1 2023 84 1 1 Environmental and Resource Economics 1 17 http://link.springer.com/10.1007/s10640-022-00706-w text/html Abstract Ilan Noy Victoria University of Wellington Eric Strobl eastrobl13@gmail.com University of Bern
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article On the Interpretation and Measurement of Technology-Adjusted Emissions Embodied in Trade Abstract We propose a new method for standardizing the production technology at the world average level and derive interpretations for the resulting carbon emission concepts. The technology-adjusted emission balance measures net weak carbon leakage defined as the difference between the foreign emissions avoided by exports and the foreign emissions generated by imports. We use global multi-regional input–output tables to document the variable’s spatio-temporal variation for 49 economies between 1995 and 2015. There is a positive cross-country correlation between net leakage and per-capita income. Changes in net leakage are generally small and do not account for country-specific emission trends, that is, domestic emission decreases were not offset by foreign emission increases. CO2, Carbon, Climate change, Decoupling, Displacement, Emissions, Global value chains, Leakage, Offshoring, Outsourcing, Input–output, Trade 1 2023 84 1 4 Environmental and Resource Economics 65 98 http://link.springer.com/10.1007/s10640-022-00725-7 text/html Abstract Aldy Darwili Delft University of Technology Enno Schröder e.schroeder@tudelft.nl Delft University of Technology
oai:RePEc:kap:enreec:v:84:y:2023:i:1:d:10.1007_s10640-022-00724-82023-01-07RePEc:kap:enreec
article Effects of Early Childhood Exposure to Pollution on Crime: Evidence from 1970 Clean Air Act Abstract Past literature has shown that 1970 amendments to the clean air act (CAA) led to significant reduction in air pollution early 1970s, and that it had positive infant health consequences for the cohorts treated by CAA. Because effects of in-utero and early childhood conditions are persistent, and the health effects can remain latent for years, CAA may impact the future adult outcomes. In this paper, I investigate the impact of the CAA on the future crime. In a difference-in-differences framework, I find that the cohorts that were born in the year of the CAA’s first implementation commit fewer crimes 15–24 years later. The magnitude of this impact is about 6%. Property crimes rather than violent crimes are impacted. I also estimate that CAA reduced the ambient air pollution by 17%. These reduced form estimates suggest that a 1% reduction in air pollution reduces future crime rate by 0.35%. Pollution, Crime, Birthweight, Education, Employment status, Earnings 1 2023 84 1 10 Environmental and Resource Economics 279 312 I15 I25 J24 K14 K42 Q53 http://link.springer.com/10.1007/s10640-022-00724-8 text/html Abstract Divya Sadana sadanad@uwec.edu University of Wisconsin - Eau Claire
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article Modeling Intertemporal Trading of Emission Permits Under Market Power Abstract In this work, we examine the effects of inter-temporal trading on the permit price and the existence of market power in the EU ETS. We contribute to the literature by dynamically modeling an emission trading system, taking into account (a) the interplay between dominant firms (leaders) and their competitive counterparts (followers), (b) intertemporal emission trading and (c) linkage between the permit and the output market. We provide equilibrium conditions for both leaders and followers. We conclude that leaders can affect followers’ decisions both in the permit and the output market, since they control the overall emission abatement. Leaders’ dominance may push followers to decrease their business-as-usual emissions and consequently their production levels by adjusting their overall abatement across periods. Further investigation through the actual emission data from the EU Transaction Log (EUTL) supports our theoretical findings. Finally, to examine model’s accuracy, we perform simulations recreating realistic scenarios. The simulation results show that our modeling reproduces the system’s behaviour and captures the changes in price, banking amount and emission levels with respect to variations on the output product and initial allocation. Emission trading systems, EU ETS, EUA, Market power, Inter-temporal trading 1 2023 84 1 9 Environmental and Resource Economics 241 278 http://link.springer.com/10.1007/s10640-022-00723-9 text/html Abstract Panagiotis Koromilas pa.koromilas@gmail.com National Technical University of Athens Angeliki Mathioudaki tmathiou@corelab.ntua.gr National Technical University of Athens Sotirios Dimos sdimos@corelab.ntua.gr National Technical University of Athens Dimitris Fotakis fotakis@cs.ntua.gr National Technical University of Athens
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article Interactions Between U.S. Vehicle Electrification, Climate Change, and Global Agricultural Markets Abstract Future agricultural production is influenced by climate change and changes in policies and behavior, such as the proliferation of battery electric vehicles (BEV). For the United States (U.S.), the influence of the latter is more pronounced due to the size of the U.S. biofuel industry. Using a global agricultural trade model and different climate change pathways until 2050, we show that global commodity price increases triggered by declining yields due to climate change are dampened by an accelerated increase of U.S. BEV sales, which decrease maize ethanol demand. Accelerated BEV sales also reduce cropland requirements compared to baseline electrification scenarios. The accelerated market share of BEVs also (1) lowers the decrease in caloric intake for maize, rice, and wheat which has important food security implications in the presence of climate change and (2) changes trade relationships. The implications of those findings are that policy discussions surrounding policies to promote BEVs should include lower commodity prices and increased food security that dampen some of the negative effects of climate change. Those are additional benefits besides the direct emissions reduction (assuming low-or no-carbon electricity production) from reducing vehicles with internal combustion engines. Land-use change, Crop yield, International trade, Representative concentration pathway, Shared socioeconomic pathway, Road transportation decarbonization 1 2023 84 1 5 Environmental and Resource Economics 99 123 F17 F18 Q15 Q17 Q18 Q54 http://link.springer.com/10.1007/s10640-022-00716-8 text/html Abstract Jerome Dumortier jdumorti@iu.edu Indiana University - Purdue University Indianapolis Miguel Carriquiry Facultad de Ciencias Económicas de la Universidad de la República Amani Elobeid Iowa State University
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article Heterogeneity in the Rebound Effect: Evidence from Efficient Lighting Subsidies Abstract This paper quantifies heterogeneity in rebound effects from policy-induced energy efficiency improvements by income and home size. We do so in a relatively understudied context: residential lighting. This context allows us to separately estimate effects for energy services (lighting hours) and electricity consumption. We identify the effect of household-level subsidy uptake using instrumental variables for program awareness. We find that rebound effects are larger for low-income households and those in smaller homes. We also show that the rebound effect is not large enough to “backfire” and all income and home-size subsamples exhibit net energy savings. Rebound effect, Heterogeneity, Energy efficiency policy 1 2023 84 1 7 Environmental and Resource Economics 173 217 http://link.springer.com/10.1007/s10640-022-00721-x text/html Abstract Ensieh Shojaeddini eshojaed@gmail.com eshojaeddini@contractor.usgs.gov USGS Ben Gilbert bgilbert@mines.edu Colorado School of Mines
oai:RePEc:kap:enreec:v::y::i::d:10.1007_s10640-020-00426-z2020-05-11RePEc:kap:enreec
article The Environmental Impacts of the Coronavirus Abstract The Covid-19 coronavirus pandemic has resulted in global lockdowns, sharply curtailing economic activity. It is a unique experiment with substantial impacts that will form the agenda for research. There are five sets of questions: the short-term impacts on emissions, the natural environment and environmental policy, including regulations and COP26; longer-term consequences from the deployment of macroeconomic monetary and fiscal stimuli, and investment in green deals; possible further deglobalisation and its impact on climate change and nature; intergenerational environmental impacts including debt and pollution burdens on future generations; and possible behavioural changes to the environment, both positive and negative. Climate change, Coronavirus, Deglobalisation, Economic shock, Greenhouse gas emissions, Lockdown, Pandemic Environmental and Resource Economics 1 18 http://link.springer.com/10.1007/s10640-020-00426-z text/html Abstract Dieter Helm Dieter@dhelm.co.uk New College
oai:RePEc:kap:enreec:v:67:y:2017:i:1:d:10.1007_s10640-015-9974-12021-01-02RePEc:kap:enreec
article Axioms of a Polluting Technology: A Materials Balance Approach Abstract This paper aims to present an economic model characterized by a set of axioms that are consistent with the laws of thermodynamics. Two new axioms—weak G-disposability (i.e., weak directional disposability) and output essentiality—are introduced to satisfy the materials balance principle and the entropy law, respectively. The axiomatic production model is compared to other well-known production models that account for the joint production of good and bad outputs to illustrate the advantages of the new modeling approach. Axiomatic production model, Materials balance principle, Weak G-disposability, Essentiality, Environmental efficiency 1 2017 67 5 1 Environmental and Resource Economics 1 22 D24 Q57 http://link.springer.com/10.1007/s10640-015-9974-1 text/html Abstract Kenneth Løvold Rødseth klr@toi.no Institute of Transport Economics-Norwegian Centre for Transport Research
oai:RePEc:kap:enreec:v:67:y:2017:i:1:d:10.1007_s10640-015-9975-02021-01-02RePEc:kap:enreec
article Is the Green Solow Model Valid for $$\hbox {CO}_{2}$$ CO 2 Emissions in the European Union? Abstract This paper addresses the $$\hbox {CO}_{2}$$ CO 2 emission patterns of the European Union from 1950 to 2010, and examines the validity of the Green Solow model, which simulates $$\hbox {CO}_{2}$$ CO 2 emissions growth by including only Solow forces and assuming emission intensity growth to be exogenous and constant. This study verifies that an environmental Kuznets curve (EKC) trajectory exists for per capita $$\hbox {CO}_{2}$$ CO 2 emissions in the European Union, that emission intensity growth is decreasing over time, and that the decreasing intensity growth reflects variations of the dependent variable in the specifications of the Green Solow model. The critique by Stefanski (On the mechanics of the Green Solow model. OxCarre Research Paper 47, OxCarre & Laval University, Oxford, 2013) of the Green Solow model assumption of exogenous and constant intensity growth is validated. The EKC is defined as the emissions plotted against income and emission intensity is defined as the ratio of emissions to income. The EKC and emission intensity share identical definitions and similar transition trajectories over time. The transition of the EKC trajectory and decline in emission intensity growth began before worldwide attention was focused on global warming. Mann–Kendall trend test, Green Solow model, Convergence, $$\hbox {CO}_{2}$$ CO 2 emissions, Emission intensity growth, Macroeconomics of climate change 1 2017 67 5 2 Environmental and Resource Economics 23 45 O14 Q56 http://link.springer.com/10.1007/s10640-015-9975-0 text/html Abstract Wan-Jiun Chen chenwanjiun@yahoo.com.tw cwj@faculty.pccu.edu.tw Chinese Culture University
oai:RePEc:kap:enreec:v:67:y:2017:i:1:d:10.1007_s10640-015-9976-z2021-01-02RePEc:kap:enreec
article Subsistence, Substitutability and Sustainability in Consumption Abstract We propose a representation of individual preferences with a subsistence requirement in consumption, and examine its implications for substitutability and sustainability. Specifically, we generalize the standard constant-elasticity-of-substitution (CES) utility specification for manufactured goods and environmental services, by adding a subsistence requirement for environmental services. We find that the Hicksian elasticity of substitution strictly monotonically increases with the consumption of environmental services above the subsistence requirement, and approaches the standard CES value as consumption becomes very large. Whether the two goods are market substitutes depends on the level of income. We further show that the subsistence requirement may jeopardize the existence of an intertemporally optimal and sustainable consumption path. Our results have important implications for growth, development and environmental policy. Elasticity of substitution, Environmental services, Stone–Geary function, Subsistence in consumption, Substitutability, Sustainability 1 2017 67 5 3 Environmental and Resource Economics 47 66 D11 I31 O12 Q01 Q56 http://link.springer.com/10.1007/s10640-015-9976-z text/html Abstract Stefan Baumgärtner stefan.baumgaertner@ere.uni-freiburg.de University of Freiburg Leuphana University of Lüneburg Moritz A. Drupp University of Kiel London School of Economics and Political Science Martin F. Quaas University of Kiel Kiel Institute for the World Economy
oai:RePEc:kap:enreec:v:67:y:2017:i:1:d:10.1007_s10640-015-9977-y2021-01-02RePEc:kap:enreec
article The Impact of Climate Change on Regional Government Expenditures: Evidence from Russia Abstract This paper explores an almost untouched topic in the fast-growing climate econometrics literature—the implications of climate change for government expenditures. Using a rich sub-national dataset for Russia covering 1995–2009, we estimate the impacts of changes in climatic conditions through short-term variation and medium-term changes in average regional temperatures and precipitation. We show a strong and robust negative (but non-linear) relation between regional budget expenditures and population-weighted temperature. The results indicate that an increase in temperature results in a decrease in public expenditures and that the magnitude of this effect diminishes the warmer the region. Further, our results suggest that the benefits from warming accumulate and that adaptation measures could help leverage those benefits. The estimated decreases in regional government expenditure are, however, quite small. In mild warming scenarios, according to our estimates Russia saves roughly USD 3–4 billion in regional government expenditures between 2000 and the 2020s without undertaking adaptation measures, depending on the scenario. It should be noted that our results are estimated for a scenario of mild temperature increase (1–2 $$^{\circ }$$ ∘ C). Larger temperature increases are likely to have dramatic consequences e.g. from loss of permafrost and methane release that are impossible to predict with available historical data. Climate change, Public expenditures, Adaptation, Non-linearity, Russia 1 2017 67 5 4 Environmental and Resource Economics 67 92 Q54 Q58 H72 R59 C50 P20 http://link.springer.com/10.1007/s10640-015-9977-y text/html Abstract Simo Leppänen simo.leppanen@aalto.fi Aalto University School of Business Laura Solanko laura.solanko@bof.fi Bank of Finland Riitta Kosonen riitta.kosonen@aalto.fi Aalto University School of Business
oai:RePEc:kap:enreec:v:67:y:2017:i:1:d:10.1007_s10640-015-9980-32021-01-02RePEc:kap:enreec
article The Environmental Conundrum of Rare Earth Elements Abstract Clean technologies, such as solar panels and wind turbines, help to curb global emissions, but they require dirty inputs for their production—i.e., mining rare earth elements (REEs) pollutes local environments. REEs are also the object of rent-shifting strategic trade policies, as highlighted by a recent WTO ruling against China’s quotas and tariffs on exports of REEs. We construct a three-country trade model with an environmental damage function, in order to examine the effects of three policies with different implications for the equilibrium quantities of dirty inputs and clean technologies: a downstream subsidy, an upstream export tariff, and an upstream pollution tax. We relate the welfare implications of the policies to the parameters of the damage function and to the number of downstream competitors. The effects of a unilateral policy switch from an export tariff to a domestic pollution tax, as suggested by China’s reaction to the WTO challenge, are also examined. Pollution, Strategic trade policy, Vertical markets 1 2017 67 5 7 Environmental and Resource Economics 157 180 F12 F18 Q56 Q58 http://link.springer.com/10.1007/s10640-015-9980-3 text/html Abstract Rui Wan wanrui@nju.edu.cn Nanjing University Jean-François Wen wen@ucalgary.ca University of Calgary
oai:RePEc:kap:enreec:v:67:y:2017:i:1:d:10.1007_s10640-015-9978-x2021-01-02RePEc:kap:enreec
article Global Warming and a Potential Tipping Point in the Atlantic Thermohaline Circulation: The Role of Risk Aversion Abstract The risk of catastrophes is one of the greatest threats of climate change. Yet, conventional assumptions shared by many integrated assessment models such as DICE lead to the counterintuitive result that higher concern about climate change risks does not lead to stronger near-term abatement efforts. This paper examines whether this result still holds in a refined DICE model that employs the Epstein–Zin utility specification and that is fully coupled with a dynamic tipping point model describing the evolution of the Atlantic thermohaline circulation (THC). Risk is captured by the possibility of a future collapse of the circulation and it is nourished by fat-tailed uncertainty about climate sensitivity. This uncertainty is assumed to resolve in the middle of the second half of this century and the near-term abatement efforts, which are undertaken before that point of time, can be adjusted afterwards. These modelling choices allow posing the question of whether aversion to this specific tipping point risk has a significant effect on near-term policy efforts. The simulations, however, provide evidence that it has little effect. For the more likely climate sensitivity values, a collapse of the circulation would occur in the more distant future. In this case, acting after learning can prevent the catastrophe, implying the remarkable insensitivity of the near-term policy to risk aversion. For the rather unlikely and high climate sensitivity values, the expected damage costs are not great enough to justify taking very costly measures to safeguard the THC. Our simulations also provide some indication that risk aversion might have some effect on near-term policy, if inertia limiting the speed of decarbonisation is accounted for. As it is highly uncertain how restrictive this kind of inertia will be, future research might investigate the effects of risk aversion if additional uncertainty about inertia is considered. Integrated assessment modeling, Risk aversion, Epstein–Zin utility, DICE, Thermohaline circulation, Climate sensitivity, Uncertainty 1 2017 67 5 5 Environmental and Resource Economics 93 125 http://link.springer.com/10.1007/s10640-015-9978-x text/html Abstract Mariia Belaia mariia.belaia@wiso.uni-hamburg.de University of Hamburg The International Max Planck Research School on Earth System Modelling Michael Funke michael.funke@uni-hamburg.de University of Hamburg CESifo Nicole Glanemann nicole.glanemann@pik-potsdam.de Potsdam Institute for Climate Impact Research WHU - Otto Beisheim School of Management
oai:RePEc:kap:enreec:v:67:y:2017:i:1:d:10.1007_s10640-015-9981-22021-01-02RePEc:kap:enreec
article Unintended Effects of Targeting an Environmental Rebate Abstract When designing schemes such as conditional cash transfers or payments for ecosystem services, the choice of whom to select and whom to exclude is critical. We incentivize and measure actual contributions to an environmental public good to ascertain whether being excluded from a rebate can affect contributions and, if so, whether the rationale for exclusion influences such effects. Treatments, i.e., three rules that determine who is selected and excluded, are randomly assigned. Two of the rules base exclusion on subjects’ initial contributions. The third is based upon location and the rationales are always explained. The rule that targets the rebate to low initial contributors, who have more potential to raise contributions, is the only rule that raised contributions by those selected. Yet by design, that same rule excludes the subjects who contributed the most initially. They respond by reducing their contributions even though their income and prices are unchanged. Behavioral economics, Field experiment, Forest conservation, Public goods, Selective rebates 1 2017 67 5 8 Environmental and Resource Economics 181 202 http://link.springer.com/10.1007/s10640-015-9981-2 text/html Abstract Francisco Alpízar falpizar@catie.ac.cr CATIE University of Gothenburg Anna Nordén University of Gothenburg Lund University Alexander Pfaff Sanford School of Public Policy, Duke University Juan Robalino CATIE
oai:RePEc:kap:enreec:v:67:y:2017:i:1:d:10.1007_s10640-015-9979-92021-01-02RePEc:kap:enreec
article The Warden Attitude: An Investigation of the Value of Interaction with Everyday Wildlife Abstract Using a discrete choice experiment, we elicit valuations of engagement with ‘everyday wildlife’ through feeding garden birds. We find that bird-feeding is primarily but not exclusively motivated by the direct consumption value of interaction with wildlife. The implicit valuations given to different species suggest that people prefer birds that have aesthetic appeal and that evoke human feelings of protectiveness. These findings suggest that people derive wellbeing by adopting a warden-like role towards ‘their’ wildlife. We test for external validity by conducting a hedonic analysis of sales of bird food. We discuss some policy implications of the existence of warden attitudes. Use value, Everyday wildlife, Discrete choice experiment, Nature connectivity, Warden attitude, Garden birds, Hedonic 1 2017 67 5 6 Environmental and Resource Economics 127 155 Q26 Q57 H41 http://link.springer.com/10.1007/s10640-015-9979-9 text/html Abstract Michael Brock University of East Anglia Grischa Perino grischa.perino@wiso.uni-hamburg.de University of Hamburg Robert Sugden University of East Anglia
oai:RePEc:kap:enreec:v:66:y:2017:i:2:d:10.1007_s10640-015-9946-52020-10-06RePEc:kap:enreec
article Dynamic Policy Impacts on a Technological-Change System of Renewable Energy: An Empirical Analysis Abstract Recently, harmonization of renewable energy policies has drawn growing attention as an important issue. To find the most effective combination, this paper identifies simultaneous interactions in an endogenous technological-change system and analyzes empirically the static and dynamic impacts of renewable energy policies in solar PV and wind power. The empirical results indicate that policy outcomes create a virtuous cycle in the technological change system through market oppurntunity, learning-by-searching, and learning-by-doing. According to the results, the static impact of technology-push and tariff incentive policies are effective on invention, while renwables obligation and CO2 tax appear to encourage cost reduction in the technologies. When the dynamic impacts of policy are considered, tariff incentives appears to outperform a renewables obligation policy with very small margin.We also found that the dynamic impact of CO2 tax varies with the level of technological development maturity. Solar photovoltaic, Wind power, Technological change system, Learning effects, Dynamics of policy impacts 2 2017 66 2 1 Environmental and Resource Economics 205 236 http://link.springer.com/10.1007/s10640-015-9946-5 text/html Abstract Kyunam Kim Korea Information Society Development Institute (KISDI) Eunnyeong Heo Seoul National University Yeonbae Kim kimy1234@snu.ac.kr Seoul National University
oai:RePEc:kap:enreec:v:66:y:2017:i:2:d:10.1007_s10640-015-9954-52020-10-06RePEc:kap:enreec
article Natural Resources and Economic Development: New Panel Evidence Abstract The question as to whether natural resources are a curse on economic growth and development is subject to considerable debates and remains controversial. Using heterogeneous panel cointegration techniques, this paper provides a fresh re-examination of the resource curse while allowing for cross-section heterogeneity and commonalities in the nexus between natural resource abundance and economic development. It finds, in a sample of developing countries, that economies endowed with abundant natural resources tend to develop more slowly than countries with scarce resources. Natural resources are, on average, a curse. However, there is considerable heterogeneity in the effects of resource abundance on economic development across countries, perhaps because of differences in the extent of government intervention, access to sound money, legal structures and the security of property rights, the degree of globalization, and/or corruption. Economic development, Natural resources, Heterogeneous panel cointegration 2 2017 66 2 6 Environmental and Resource Economics 363 391 C23 O13 Q34 http://link.springer.com/10.1007/s10640-015-9954-5 text/html Abstract Dong-Hyeon Kim Korea Univeristy Shu-Chin Lin econscl@mail.tku.edu.tw Tamkang University
oai:RePEc:kap:enreec:v:66:y:2017:i:2:d:10.1007_s10640-015-9950-92020-10-06RePEc:kap:enreec
article How does Foreign Direct Investment Affect Pollution? Toward a Better Understanding of the Direct and Conditional Effects Abstract This paper seeks to investigate the impact of foreign direct investments (FDIs) on industrial pollution ( $$\hbox {CO}_{2}, \hbox {SO}_{2}, \hbox {NO}_\mathrm{x}$$ CO 2 , SO 2 , NO x and BOD emissions) on a large sample of highly heterogeneous countries. By using panel data on manufacturing FDIs from France, Germany, Sweden, and the United Kingdom between 1995 and 2008, and by developing an empirical model with “first” and “second order” interaction terms, we investigate the existence and the conditionality of the most controversial FDI-induced effects on industrial emissions, i.e., Pollution Haven, Factor Endowments and Pollution Halo hypotheses. The paper has three main findings: (1) the central hypotheses linking pollution to FDI are found to act simultaneously, with opposing effects; (2) FDIs are associated with pollution reduction, i.e., predominating pollution halo induced effect, in countries with low to average capital-to-labour ratio but not too lax environmental regulation; (3) FDIs are found to increase pollution, i.e., prevailing pollution haven and/or factor endowments induced effects, in countries with average capital endowments and lax environmental regulations, as well as in all the capital abundant countries, though with a smaller magnitude in countries having strict environmental regulations and/or a high-skilled labour force. Some specific and interesting findings are discussed regarding different FDI-origin countries and FDI-host country groups. Environmental regulation, FDI, Industrial air and water pollution, Pollution halo, Pollution haven 2 2017 66 2 4 Environmental and Resource Economics 293 338 F18 F23 Q53 Q56 http://link.springer.com/10.1007/s10640-015-9950-9 text/html Abstract Natalia Zugravu-Soilita natalia.zugravu@uvsq.fr nzugravu@yahoo.com University of Versailles Saint-Quentin-en-Yvelines
oai:RePEc:kap:enreec:v:66:y:2017:i:2:d:10.1007_s10640-015-9952-72020-10-06RePEc:kap:enreec
article Latent Tastes, Incomplete Stratification, and the Plausibility of Vertical Sorting Models Abstract This paper uses the 2011 Phoenix Area Social Survey to evaluate the plausibility of the assumptions made with pure characteristics sorting models to rationalize incomplete stratification of households across local communities by income. The analysis with the New Ecological Paradigm, a well-recognized index of environmental attitudes, confirms the correlations in equilibrium outcomes implied by these models. As a result, it provides the first empirical support for the role of differences in the tastes for public goods as one explanation that provides the rationale for the commonly observed sorting outcomes. Equilibrium sorting models, Local public goods, New Ecological Paradigm 2 2017 66 2 5 Environmental and Resource Economics 339 361 D58 H4 Q51 http://link.springer.com/10.1007/s10640-015-9952-7 text/html Abstract Jacob Fishman Arizona State University V. Kerry Smith kerry.smith@asu.edu Arizona State University
oai:RePEc:kap:enreec:v:66:y:2017:i:2:d:10.1007_s10640-015-9948-32020-10-06RePEc:kap:enreec
article The Effect of Within-Sector, Upstream and Downstream Environmental Taxes on Innovation and Productivity Abstract The aim of this paper is to investigate the effect of environmental regulatory stringency on innovation and productivity using a panel of 8 European countries for 13 manufacturing sectors over the years 2001–2007. This research topic falls under the heading of the Porter hypothesis (PH) of which different versions have been tested. We consider both the strong and the weak versions of the PH, while also adding some peculiar features to the analysis. Firstly, we assess the role played by environmental taxes, that is an instrument rarely tested as a factor which can support the PH. Secondly, we analyse not only the effect of environmental taxes within a given sector (within-sector), but also the role played by environmental taxes in upstream and downstream sectors in terms of input–output relationships. Thirdly, we test these relationships also ‘indirectly’ by verifying whether innovation is one of the channels through which higher sectoral productivity can be achieved by imposing tighter environmental regulations. Our main findings suggest that downstream stringency is the most relevant driver of innovation and productivity while within-sector regulations only affect productivity but not innovation. Moreover, the effect of regulations on productivity is mostly direct, while the part of the effect mediated by induced innovations, as measured by patents, is relevant only for what concerns downstream regulations. Downstream, Upstream, Environmental taxes, Input–output, Porter hypothesis 2 2017 66 2 3 Environmental and Resource Economics 261 291 L6 O13 Q55 http://link.springer.com/10.1007/s10640-015-9948-3 text/html Abstract Chiara Franco chiara.franco@unicatt.it Catholic University of Sacred Heart SEEDS Sustainability Environmental Economics and Dynamics Studies Giovanni Marin giovanni.marin@ircres.cnr.it SEEDS Sustainability Environmental Economics and Dynamics Studies IRCrES-CNR, Research Institute on Sustainable Economic Growth of National Research Council of Italy OFCE-SciencesPo
oai:RePEc:kap:enreec:v:66:y:2017:i:2:d:10.1007_s10640-015-9947-42020-10-06RePEc:kap:enreec
article Do Natural Resources Breed Corruption? Evidence from China Abstract Rampant corruption is often observed in resource-rich countries, especially developing countries with weak political institutions. However, controversies exist regarding whether and how natural resources systematically breed corruption. With empirical evidence from China and through a subnational approach, I shed new light on the impacts of resources on corruption. By qualitative study of corruption cases, I identify the causal channels through which resources contribute to corruption, and using cross-regional and longitudinal statistical analysis on a unique dataset of corruption rates in China, I find that resource dependence significantly increases the propensity for corruption by state employees. China, Corruption, Curse of natural resources, Mixed research method, Subnational analysis 2 2017 66 2 2 Environmental and Resource Economics 237 259 http://link.springer.com/10.1007/s10640-015-9947-4 text/html Abstract Jing Vivian Zhan zhan@cuhk.edu.hk The Chinese University of Hong Kong
oai:RePEc:kap:enreec:v:74:y:2019:i:4:d:10.1007_s10640-019-00381-42019-11-21RePEc:kap:enreec
article Environmental Policy Instrument Choice and International Trade Abstract We develop a dynamic stochastic general equilibrium model to understand how environmental policy instrument choice affects trade. We extend the existing literature by employing an open economy model to evaluate three environmental policy instruments: cap-and-trade, pollution taxes, and an emissions intensity standard in the face of two types of exogenous shocks. We calibrate the model to Canadian data and simulate productivity and import price shocks. We evaluate the evolution of key macroeconomic variables, including the trade balance in response to the shocks under each policy instrument. Our findings for the evolution of output and emissions under a productivity shock are consistent with previous closed economy models. Our open economy framework allows us to find that a cap-and-trade policy dampens the international trade effects of the business cycle relative to an emissions tax or intensity standard. Under an import shock, pollution taxes and intensity targets are as effective as cap-and-trade policies in reducing variance in consumption and employment. The cap-and-trade policy limits the intensity of the import competition shock suggesting that particular policy instrument might serve as a barrier to trade. Environmental policy, Import competition, Business cycles, Macroeconomic dynamics, Open economy 4 2019 74 12 6 Environmental and Resource Economics 1585 1617 Q54 E32 http://link.springer.com/10.1007/s10640-019-00381-4 text/html Abstract J. Scott Holladay jhollad3@utk.edu University of Tennessee Mohammed Mohsin mmohsin@utk.edu University of Tennessee Shreekar Pradhan shreekar@virginia.edu University of Virginia
oai:RePEc:kap:enreec:v:74:y:2019:i:4:d:10.1007_s10640-019-00383-22019-11-21RePEc:kap:enreec
article Treated Wastewater Reuse: An Efficient and Sustainable Solution for Water Resource Scarcity Abstract Wastewater has become a valuable resource in many regions of the world that face increased level of freshwater scarcity. Reuse of treated wastewater has high economic benefit, but it can also lead to environmental pollution. As such, explicit conditions must be defined to determine the optimality of wastewater reuse for society. In this paper, we develop a regional multi-sectoral model of water quantity–quality interaction among the urban, agricultural, and environmental sectors. Our interest lies in the feasibility of reuse, rather than the stability of the regional arrangements, therefore we apply a social planner’s approach to this regional problem. We formally construct sufficient conditions that support the superiority of infrastructure development and conveyance of treated wastewater for irrigation, when measured against other common disposal alternatives. Using a numerical illustrative example, which relies on data and results from existing literature, we were able to replicate our theoretical findings, as well as to examine their robustness, when supporting assumptions are relaxed. Wastewater reuse, Optimal allocation, Social planner, Quantity–quality management, Externalities 4 2019 74 12 8 Environmental and Resource Economics 1647 1685 C61 Q15 Q25 Q53 http://link.springer.com/10.1007/s10640-019-00383-2 text/html Abstract Ami Reznik reznik@ucr.edu University of California, Riverside Ariel Dinar University of California, Riverside Francesc Hernández-Sancho University of Valencia
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article Fuel Subsidies Versus Market Power: Is There a Countervailing Second-Best Optimum? Abstract Fuel subsidies distort end-use prices below cost, resulting in overconsumption and huge environmental cost. On the other hand, the mark-up over cost due to the exercise of market power results in the social loss of consumer surplus. We open a new line of inquiry into the potential for a market-based solution from these two countervailing forces: can the two offsetting distortions conceivably achieve a second- best optimum? Relying on dynamic panel techniques and gasoline market data for 68 developing countries, we uncover an excessive second-best subsidy offset to market power mark-up on the order of 4.5. Our results indicate that the potential for policy failure strongly exceeds the potential for market failure in our model, and gasoline prices across our sample may not be aligned with vigorous anti-climate change policy. Gasoline, Fuel subsidies, Market power, Pass-through, Second-best, Developing countries JEL Classification, C3, L1, L2, Q4 4 2019 74 12 7 Environmental and Resource Economics 1619 1646 http://link.springer.com/10.1007/s10640-019-00382-3 text/html Abstract Morakinyo O. Adetutu morakinyo.adetutu@warwick.ac.uk University of Warwick Thomas G. Weyman-Jones t.g.weyman-jones@lboro.ac.uk Loughborough University
oai:RePEc:kap:enreec:v:74:y:2019:i:4:d:10.1007_s10640-019-00377-02019-11-21RePEc:kap:enreec
article Climate Policy Must Favour Mitigation Over Adaptation Abstract In climate change policy, adaptation tends to be viewed as being as important as mitigation. In this article we present a simple yet general argument for which mitigation must be preferred to adaptation at the global level. The argument rests on the observation that mitigation is a public good while adaptation is a private one. We show that the more one teases out the public good nature of mitigation, the lower will be the incentives to invest in the private good adaptation while it increases a policy maker’s incentives to invest in the public good mitigation. Conclusively, private adaptation yields a significant loss to global welfare. We then discuss what this implies for the current state of the art literature and what should be the lesson for future research. Mitigation, Adaptation, Aggregation, Public good, Private good 4 2019 74 12 3 Environmental and Resource Economics 1519 1531 Q58 Q54 http://link.springer.com/10.1007/s10640-019-00377-0 text/html Abstract Ingmar Schumacher ingmar.schumacher@ipag.fr IPAG Business School Ecole Polytechnique
oai:RePEc:kap:enreec:v:74:y:2019:i:4:d:10.1007_s10640-019-00375-22019-11-21RePEc:kap:enreec
article Waiting for the Courts: Effects of Policy Uncertainty on Pollution and Investment Abstract Legal challenges and transitions of political power cause the future of regulatory policies to be uncertain. In this article, I investigate how uncertainty about environmental policy affects investment and emissions at coal-fired power plants. I exploit a legal challenge to the Clean Air Interstate Rule (CAIR) that created variation in the probability that individual plants would need to comply with the new policy. I use a difference-in-differences approach to compare pollution reductions at power plants located in states subject to more uncertainty to plants in states that that were not. I find that plants with a lower probability of being regulated invested in fewer capital-intensive pollution controls and reduced pollution by 13% less on average. Many of these plants did switch to capital-intensive pollution controls after the court upheld CAIR. Policy uncertainty increased compliance costs by $124 million by delaying efficient investments. Policy uncertainty, Investment, Environmental regulation, Air pollution, Electricity 4 2019 74 12 1 Environmental and Resource Economics 1453 1496 Q40 Q52 D22 D92 L94 http://link.springer.com/10.1007/s10640-019-00375-2 text/html Abstract Jackson Dorsey jfdorsey@iu.edu Indiana University
oai:RePEc:kap:enreec:v:74:y:2019:i:4:d:10.1007_s10640-019-00380-52019-11-21RePEc:kap:enreec
article Household Demand for Water in Rural Kenya Abstract To expand and maintain water supply infrastructure in rural regions of developing countries, planners and policymakers need better information on the preferences of households who might use the sources. Using data from 387 households in rural Kenya, we model source choice and water demand using a discrete-continuous (linked) demand model. We find that households are sensitive to the price, proximity, taste, and availability in choosing among sources, but are not sensitive to other source qualities including color, health risk, and risk of conflict. Estimates of the value of time implied by our model suggest that households value time spent collecting water at one third of unskilled wages. We use the linked demand framework to estimate own-price elasticities in the rural setting. These estimates range between − 0.13 and − 1.33, with a mean of − 0.56, and are consistent with other elasticity estimates from small and large cities. Rural water supply, Water source choice, Value of travel time, Water quality, Kenya, Household water demand, WASH, Water collection, Discrete-continuous demand 4 2019 74 12 5 Environmental and Resource Economics 1563 1584 http://link.springer.com/10.1007/s10640-019-00380-5 text/html Abstract Jake Wagner jake.wagner@wsu.edu Washington State University Joseph Cook Washington State University Peter Kimuyu Commission for Revenue Allocation
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article Building Risk into the Mitigation/Adaptation Decisions simulated by Integrated Assessment Models Abstract This paper proposes an operationally simple and easily generalizable methodology to incorporate climate change damage uncertainty into Integrated Assessment Models (IAMs). First uncertainty is transformed into a risk measure by extracting damage distribution means and variances from an ensemble of socio economic and climate change scenarios. Then a risk premium is computed under different degrees of risk aversion, quantifying what society would be willing to pay to insure against the uncertainty of the damages. Our estimates show that the premium for the risk is a potentially significant addition to the “standard average damage”, but highly sensitive to the attitudes toward risk. In the last research phase, the risk premium is incorporated into the climate change damage function of a widely used IAM which shows, consequently, a substantial increase in both mitigation and adaptation efforts, reflecting a more precautionary attitude by the social planner. Interestingly, adaptation is stimulated more than mitigation in the first half of this century, while the situation reverses afterwards. Risk, Uncertainty, Climate change damages, Adaptation, Mitigation 4 2019 74 12 9 Environmental and Resource Economics 1687 1721 Q2 Q3 D8 D9 D62 http://link.springer.com/10.1007/s10640-019-00384-1 text/html Abstract Anil Markandya Scientific Campus of the University of the Basque Country Enrica Cian University of Venice Ca’ Foscari Fondazione Euro-Mediterranean Center on Climate Change Laurent Drouet Fondazione Euro-Mediterranean Center on Climate Change Josué M. Polanco-Martínez Scientific Campus of the University of the Basque Country University of Bordeaux Francesco Bosello francesco.bosello@cmcc.it Fondazione Euro-Mediterranean Center on Climate Change University of Milan
oai:RePEc:kap:enreec:v:74:y:2019:i:4:d:10.1007_s10640-019-00379-y2019-11-21RePEc:kap:enreec
article Combining Risk Attitudes in a Lottery Game and Flood Risk Protection Decisions in a Discrete Choice Experiment Abstract Decision-making about flood protection is surrounded by outcome uncertainty. In this paper we look at the influence of individual risk attitudes on flood protection decisions. To this end, we combine the results of a lottery game with the findings from a discrete choice experiment focusing on flood risk reduction measures. We find that the inclusion of non-linear probability weighting increases the explanatory power of the choice model. The result is however sensitive to behavioral assumptions about decisions under uncertainty, as well as whether the lottery was played in the loss or gain domain. Including risk attitudes in the probability weighted model decreases marginal willingness to pay for measures with a low to intermediate flood risk reduction capacity and increases marginal willingness to pay for measures with a very high flood risk reduction effect. This has important implications for the social acceptability of flood reduction measures under different baseline conditions. Lottery game, Choice experiment, Flood risk, Bayesian model averaging, Risk attitudes 4 2019 74 12 4 Environmental and Resource Economics 1533 1562 C11 C57 D81 Q54 http://link.springer.com/10.1007/s10640-019-00379-y text/html Abstract Markus Glatt markus.glatt@eawag.ch Eawag, Swiss Federal Institute of Aquatic Science and Technology Vrije Universiteit Amsterdam Roy Brouwer rbrouwer@uwaterloo.ca Eawag, Swiss Federal Institute of Aquatic Science and Technology University of Waterloo Vrije Universiteit Amsterdam Ivana Logar ivana.logar@eawag.ch Eawag, Swiss Federal Institute of Aquatic Science and Technology
oai:RePEc:kap:enreec:v:74:y:2019:i:4:d:10.1007_s10640-019-00376-12019-11-21RePEc:kap:enreec
article The Effect of Growth and Corruption on Soil Sealing in Italy: A Regional Environmental Kuznets Curve Analysis Abstract This paper analyses and looks more closely at the empirical debate regarding the Income Elasticity Hypothesis postulated in relation to the Environmental Kuznets Curve, and the impact of corruption on the relationship between growth and environmental impact, measured in terms of soil sealing, as proxied by the number of Building Permits issued by public authorities. It postulates that when current private rent is high compared to perceived social costs and a large enough minority benefits from the rules, the EKC does not emerge and public intervention fails to perceive social optimality. To validate this hypothesis, we run a panel data regression model based on data from all Italian regions. Results confirmed the hypothesis evidencing a U-shaped relationship, i.e. a detrimental relationship between income and environmental impact/quality. It also demonstrated that this is contingent on the level of corruption. The latter affects the position and the shape of the inverted EKC, speeding up the exploitation process. It shows that the higher the income, the higher the effect of corruption on the environment. Therefore, it advocates caution against any simplistic inference from EKC. Environmental Kuznets curve, Urban policy, Land use, Soil sealing, Corruption 4 2019 74 12 2 Environmental and Resource Economics 1497 1518 C23 D72 D73 O44 Q24 http://link.springer.com/10.1007/s10640-019-00376-1 text/html Abstract Salvatore Bimonte bimonte@unisi.it University of Siena Arsenio Stabile University of Siena
oai:RePEc:kap:enreec:v:73:y:2019:i:1:d:10.1007_s10640-018-0258-42019-05-08RePEc:kap:enreec
article Spatial Effects of Air Pollution on Public Health in China Abstract Increasingly serious air pollution poses a great threat to public health and daily life. Based on the Grossman China health production function, this paper examines the effects of the spatial agglomeration of Chinese public health and the spatial effects of air pollution and other factors on public health considering three aspects. This study employed Chinese macro data on public health and air pollution from 2004 to 2013 to conduct an empirical analysis using a spatial econometrics technique. The main conclusions are as follows. Due to extensive and persistent air pollution, there was a significant spatial agglomeration impact on public health, regional public health presented a convergence effect, and effects of air pollution’s negative externalities on public health were significant. Compared with the estimation results obtained when spatial dependence was not considered, the negative effect of the concentration of PM2.5 on public health was higher, implying that the traditional approaches tend to create biases when spatial correlation is ignored; from a regional perspective, the regional differences in the effects of air pollution on public health were significant. Adopting differentiated environmental policies for different regions is the future direction towards which China’s environmental governance will develop. Public health, Air pollution, Health production function, Spatial econometrics 1 2019 73 5 11 Environmental and Resource Economics 229 250 http://link.springer.com/10.1007/s10640-018-0258-4 text/html Abstract Yin Feng fyteddy@163.com China University of Geosciences (Wuhan) Hubei Academy of Environmental Sciences Jinhua Cheng chengjinhua100@126.com Resources Environmental Economic Research Center of China University of Geosciences (Wuhan) Jun Shen shenjun130@hotmail.com China University of Geosciences (Wuhan) Resources Environmental Economic Research Center of China University of Geosciences (Wuhan) Han Sun sunhan2004@126.com China University of Geosciences (Wuhan)
oai:RePEc:kap:enreec:v:73:y:2019:i:1:d:10.1007_s10640-018-0260-x2019-05-08RePEc:kap:enreec
article Garbage In and Garbage Out? On Waste Havens in Switzerland Abstract This study investigates whether the introduction of a unit-based garbage fee induces waste dumping in nearby communities which do not implement such a policy. To identify the existence of a “waste haven effect”, I hypothesize that the likelihood of “importing” or “exporting” waste depends on the distance to municipalities which have chosen the alternative policy option. Distances between municipalities are captured by routing data. I find some evidence for waste havens in a cross-section of Swiss municipalities. Exploiting variation in waste policy over time in a panel dataset for the canton of Ticino, I find that a decrease in distance is associated with an increase in the amount of waste collected by non-unit-pricing municipalities. The effect size is relatively small: An increase by one standard deviation in the impact factor applied to identify the waste haven effect increases the amount of collected waste per capita in non-unit-pricing municipalities by less than 3%. Municipal solid waste dumping, Spillovers, Waste havens 1 2019 73 5 12 Environmental and Resource Economics 251 282 Q53 H23 F18 http://link.springer.com/10.1007/s10640-018-0260-x text/html Abstract Tobias Erhardt tobias.erhardt@unibas.ch University of Basel
oai:RePEc:kap:enreec:v:73:y:2019:i:1:d:10.1007_s10640-018-0252-x2019-05-08RePEc:kap:enreec
article Policy Change Anticipation in the Buyback Context Abstract To what degree might an anticipated policy change delay the fleet restructuring process initiated by a vessel buyback? This paper addresses the issue by estimating a restricted profit function to analyze an overcapitalized fishing fleet subject to restrictive regulation on the harvest of its primary target species. Fishermen’s expectations and likely responses to the future regulations regarding individual quotas are modeled in the context of a time-limited buyback program. The Polish trawler fleet targeting primarily cod provides an application. Analyzing potential individual quota tradability, we find that considerable shifts in disinvestment are to be found due to anticipated policy change. The mechanisms driving discrepancies include capitalized value of quota, as well as the tradability option capitalized into other inputs with inelastic supply. Overcapacity, Policy anticipation, Vessel buyback, Polish trawl fishery 1 2019 73 5 6 Environmental and Resource Economics 111 132 http://link.springer.com/10.1007/s10640-018-0252-x text/html Abstract Barbara Hutniczak bhutnicz@umces.edu barbara.hutniczak@gmail.com University of Maryland Center for Environmental Science Niels Vestergaard nv@sam.sdu.dk University of Southern Denmark Dale Squires dsquires@ucsd.edu University of California San Diego
oai:RePEc:kap:enreec:v:73:y:2019:i:1:d:10.1007_s10640-018-0249-52019-05-08RePEc:kap:enreec
article Do Voluntary Commons Associations Deliver Sustainable Grazing Outcomes? An Empirical Study of England Abstract In 1965, the Commons Registration Act came into force in England and Wales. The Act led to the removal of the capacity of commoners to regulate the intensity of grazing via traditional legal means. From this policy shock a number of voluntary commons associations were formed. These voluntary groups relied on their members to agree upon how the commons should be managed. Using two-stage least squares regression analysis we find that commons governed by these associations are much more likely to produce sustainable grazing outcomes. These results are robust to the existence of a variety of controls, including overlapping institutional frameworks. Importantly, they highlight the ability of voluntary environmental organisations to deliver sustainable environmental outcomes. Commons, Environmental governance, Voluntary agreements, Non-state institutions 1 2019 73 5 3 Environmental and Resource Economics 51 74 http://link.springer.com/10.1007/s10640-018-0249-5 text/html Abstract Shaun Larcom stl25@cam.ac.uk University of Cambridge Terry Gevelt tvgevelt@hku.hk University of Hong Kong
oai:RePEc:kap:enreec:v:73:y:2019:i:1:d:10.1007_s10640-018-0264-62019-05-08RePEc:kap:enreec
article Measuring Willingness to Pay for Environmental Attributes in Seafood Abstract We investigate whether consumers are willing to pay for sustainability in seafood. To do this, we estimate a logit random utility model (RUM) of seafood purchases using a product-level scanner dataset from a quasi-experimental setting that includes data both before and after the implementation of a seafood advisory and sustainability label. Each seafood product is defined as a bundle of attributes, including price, species, and sustainability rating. The sustainability rating is communicated to consumers through the use of a color-based traffic light label system, where a color rating is assigned to each seafood stock-keeping unit. Combining a structural demand model with a difference-in-differences approach allows us to take advantage of the implementation of the labeling treatment in a subset of stores in the local retail chain to estimate consumers’ willingness to pay (WTP) for green, yellow, and red sustainability labels. We find that the addition of a yellow sustainability label negatively impacts consumer’s WTP for seafood products, however this simple average effect does not fully capture many independent underlying mechanisms, such as consumer preferences for wild-caught versus farmed products, and the color-distribution of available labeled products within a species, which are empirically explored. Additional results from a second stage generalized least squares regression of RUM product fixed effects on product characteristics indicate that consumers prefer selective harvest methods, wild caught seafood, and U.S. caught seafood. Eco-labels, Traffic-light labels, Sustainable seafood, Random utility model, Quasi-experimental, Information provision, Environmental policy 1 2019 73 5 14 Environmental and Resource Economics 307 332 http://link.springer.com/10.1007/s10640-018-0264-6 text/html Abstract James Hilger james.hilger@noaa.gov Southwest Fisheries Science Center Eric Hallstein ehallstein@tnc.org The Nature Conservancy Andrew W. Stevens a.stevens@msstate.edu Mississippi State University Sofia B. Villas-Boas sberto@berkeley.edu University of California at Berkeley
oai:RePEc:kap:enreec:v:73:y:2019:i:1:d:10.1007_s10640-018-0265-52019-05-08RePEc:kap:enreec
article Transboundary Natural Resources, Externalities, and Firm Preferences for Regulation Abstract This paper analyzes a common property resource shared by two countries in the presence of two forms of bilateral externalities: the tragedy of the commons and the environmental damage resulting from the exploitation of the resource. We demonstrate that both cooperative and non-cooperative forms of regulation produce a negative effect on firms’ profits, as they increase firms’ unit production costs. However, regulation can also entail a positive effect on profits by mitigating industry overproduction. We show that the magnitude of these two effects depends not only on the type of regulatory instrument, but also on the rate of resource extraction and the environmental damage in each country. We identify conditions under which the positive effect of regulation dominates its negative effect, thus increasing firms’ profits and ultimately incentivizing them to support the introduction of regulation, either at the national or international level. Common property resource, Bilateral externalities, Transboundary externalities 1 2019 73 5 15 Environmental and Resource Economics 333 352 H23 Q38 C71 C72 http://link.springer.com/10.1007/s10640-018-0265-5 text/html Abstract Sherzod B. Akhundjanov sherzod.akhundjanov@usu.edu Utah State University Felix Muñoz-García fmunoz@wsu.edu Washington State University
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article Do Random Coefficients and Alternative Specific Constants Improve Policy Analysis? An Empirical Investigation of Model Fit and Prediction Abstract Concerns about unobserved heterogeneity—either in preference or attribute space—have led environmental economists to turn increasingly to discrete choice models that incorporate random parameters and alternative specific constants. We use four recreation data sets and several empirical specifications to show that although these modeling innovations often lead to substantial improvements in overall model fit, they also generate poor in-sample predictions relative to observed choices. Given the apparent tradeoff between fit and prediction, we then propose and empirically investigate a series of ‘second-best’ strategies that attempt to correct for the poor prediction we observe. Discrete choice, Recreation demand, Revealed preference, Stated preference, Alternative specific constants, Random parameters 1 2019 73 5 4 Environmental and Resource Economics 75 91 C25 Q51 L83 http://link.springer.com/10.1007/s10640-018-0250-z text/html Abstract H. Allen Klaiber klaiber.16@osu.edu The Ohio State University Roger H. von Haefen roger_von_haefen@ncsu.edu North Carolina State University
oai:RePEc:kap:enreec:v:73:y:2019:i:1:d:10.1007_s10640-018-0256-62019-05-08RePEc:kap:enreec
article Weathering Storms: Understanding the Impact of Natural Disasters in Central America Abstract In the past decades, natural disasters have caused substantial human and economic losses in Central America, with strong adverse impacts on gross domestic product per capita, income, and poverty reduction. This study provides a regional perspective on the short-term impact of hurricane windstorms on socioeconomic indicators. Apart from modeling the socioeconomic impact at the macro and micro levels, the study incorporates and juxtaposes data from a hurricane windstorm model categorizing three hurricane damage indexes, which lends a higher level of detail, nuance, and therefore accuracy and comprehensiveness to the study. One standard deviation in the intensity of a hurricane windstorm leads to a decrease in growth of total per capita gross domestic product of between 0.9 and 1.6%, and a decrease in total income and labor income by 3%, which in turn increases moderate and extreme poverty by 1.5 percentage points. These results demonstrate the causal relationship between hurricane windstorm impacts and poverty in Central America, producing regional evidence that could improve targeting of disaster risk management policies toward those most impacted and thus whose needs are greatest. Hurricanes, Poverty, Natural disasters, Central America, Economic growth, Vulnerability 1 2019 73 5 9 Environmental and Resource Economics 181 211 O11 O12 O44 Q51 Q54 R11 http://link.springer.com/10.1007/s10640-018-0256-6 text/html Abstract Oscar A. Ishizawa oishizawa@worldbank.org The World Bank Juan Jose Miranda jjmiranda@worldbank.org The World Bank
oai:RePEc:kap:enreec:v:73:y:2019:i:1:d:10.1007_s10640-018-0255-72019-05-08RePEc:kap:enreec
article Measuring the Impact of Water Supply Interruptions on Household Welfare Abstract Water scarcity frequently leads to a need for rationing. The choice of an adequate rationing method should be based on the impact on consumer welfare that is produced by each rationing plan. Some rationing schemes, such as the frequently used supply interruption method, can be regarded as changes in the characteristics of the good (in this case, time availability) that do not modify the pre-set consumer budget. Under the standard theoretical restrictions on consumer behavior compensating or equivalent variations/surpluses cannot be used to identify the impacts of these methods on household welfare. In this paper, we propose a set of sufficient conditions with respect to the utility function that allows for the evaluation of the compensating or equivalent variations/surpluses associated with changes in goods’ quality, even if those goods are considered to be essential for consumers. We use these conditions to compare the welfare losses associated with the water supply cuts implemented in Seville (Spain) to those that would result if water was instead rationed using price changes. Residential water demand, Welfare measures, Utility function, Compensating variation, Compensating surplus, Supply interruption, Rationing 1 2019 73 5 8 Environmental and Resource Economics 159 179 http://link.springer.com/10.1007/s10640-018-0255-7 text/html Abstract David Roibas droibas@uniovi.es Universidad de Oviedo Maria A. Garcia-Valiñas mariangv@uniovi.es Universidad de Oviedo Roberto Fernandez-Llera rfllera@uniovi.es Universidad de Oviedo
oai:RePEc:kap:enreec:v:73:y:2019:i:1:d:10.1007_s10640-018-0247-72019-05-08RePEc:kap:enreec
article Dynamic Efficiency in Experimental Emissions Trading Markets with Investment Uncertainty Abstract This study employs a laboratory experiment to assess the performance of tradable permit markets on dynamic efficiency arising from cost-reducing investment. The permit allocation rule is the main treatment variable, with permits being fully auctioned or grandfathered. The experimental results show significant investment under both allocation rules in the presence of ex ante uncertainty over the actual investment outcome. However, auctioning permits generally provides stronger incentives to invest in R&D, leading to greater dynamic efficiency compared to grandfathering. Pollution permits, Allowance auction, Grandfathering, Investment incentives, Stochastic R&D, Laboratory experiments 1 2019 73 5 1 Environmental and Resource Economics 1 31 C91 D80 O31 Q55 Q58 http://link.springer.com/10.1007/s10640-018-0247-7 text/html Abstract Timothy N. Cason cason@purdue.edu Purdue University Frans P. Vries f.p.devries@stir.ac.uk University of Stirling Management School
oai:RePEc:kap:enreec:v:73:y:2019:i:1:d:10.1007_s10640-018-0251-y2019-05-08RePEc:kap:enreec
article Border Adjustments Supplementing Nationally Determined Carbon Pricing Abstract As agreed on in the Paris Agreement, each country determines its own contribution to combat climate change on a voluntary basis. There is no mechanism to force a country to comply with its own nationally determined contributions. This bottom-up approach builds on unilateral actions and yields a kind of carbon pricing, which is not necessarily identical across countries. As a consequence, these nationally determined climate policies have drawbacks in terms of carbon leakage and loss of competitiveness for firms producing in high carbon price countries. To reduce these negative effects, border adjustments (BAs) may be appropriate subsequent to more stringent environmental regulation. We model a three-stage game involving carbon price competition in the first stage, the introduction of BAs in the second stage and oligopolistic competition between firms in the third stage. Strategic trade theory suggests that the qualitative results about the optimal BA policy may vary with the underlying type of competition, namely Bertrand and Cournot competition. However, our results are similar for both types of competition. We conclude that BAs are suitable for supporting a more stringent environmental policy. Moreover, we find that anticipation of the implementation of BAs in the second stage yields higher average carbon prices in the first stage since high carbon price countries increase their carbon prices whereas the other countries partially offset. Unilateral climate policy, Carbon pricing, Environmental tax competition, Border adjustment, International trade, Oligopolistic competition 1 2019 73 5 5 Environmental and Resource Economics 93 109 C72 H41 F12 http://link.springer.com/10.1007/s10640-018-0251-y text/html Abstract Melanie Hecht hecht@europa-uni.de European University Viadrina Wolfgang Peters European University Viadrina
oai:RePEc:kap:enreec:v:73:y:2019:i:1:d:10.1007_s10640-018-0257-52019-05-08RePEc:kap:enreec
article Time Trends and Persistence in the Global CO2 Emissions Across Europe Abstract We analyze the evolution across time of CO2 emissions in the European Union (EU) using advanced econometric techniques in time series analysis. We estimate the time trends along with the orders of integration of series corresponding to global CO2 emissions in EU member states using both parametric and semiparametric methods. The results show that there is a significantly negative trend only in the case of the UK, this being also a country where the trend shows mean reversion. At the other extreme, Spain, Italy, Greece and Bulgaria are some of the countries where CO2 emissions show positive trends and orders of integration that are substantially above unity. Moreover, we examine the CO2 emissions of the EU as a whole, China and the US, finding some support for mean reversion only in the second case. Therefore, there is less urgent need for policy reforms in the U.K. and somehow China than in the rest of the EU or the US. CO2 emissions, Time trends, Fractional integration, Persistence 1 2019 73 5 10 Environmental and Resource Economics 213 228 C22 Q50 Q58 http://link.springer.com/10.1007/s10640-018-0257-5 text/html Abstract Luis A. Gil-Alana alana@unav.es University of Navarra Tommaso Trani University of Navarra
oai:RePEc:kap:enreec:v:73:y:2019:i:1:d:10.1007_s10640-018-0262-82019-05-08RePEc:kap:enreec
article Weather, Climate and Total Factor Productivity 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 the Penn World Table, we test this hypothesis by directly examining the nature of the relationship between annual temperature shocks and TFP growth rates in the period 1960–2006. The results show a negative relationship only exists in poor countries, where a 1 °C annual increase in temperature decreases TFP growth rates by about 1.1–1.8 percentage points, whereas the impact is indistinguishable from zero in rich countries. Extrapolating from weather to climate, the possibility of dynamic effects of climate change in poor countries increases concerns over the distributional issues of future impacts and, from a policy perspective, restates the case for complementarity between climate policy and poverty reduction. Weather variability, Climate change, Total factor productivity, Economic growth 1 2019 73 5 13 Environmental and Resource Economics 283 305 O44 O47 Q54 http://link.springer.com/10.1007/s10640-018-0262-8 text/html Abstract Marco Letta marco.letta@uniroma1.it Sapienza Università di Roma Richard S. J. Tol r.tol@sussex.ac.uk University of Sussex Vrije Universiteit, Amsterdam Tinbergen Institute CESifo
oai:RePEc:kap:enreec:v:73:y:2019:i:1:d:10.1007_s10640-018-0248-62019-05-08RePEc:kap:enreec
article Optimal Waste Disposal Fees When Product Durability is Endogenous: Accounting for Planned Obsolescence Abstract Considering the Coase conjecture (J Law Econ 15:143–149, 1972), we explore the optimal disposal fee of solid waste through the choice of product durability by a producer. We find that introducing a disposal fee curbs planned obsolescence and increases product durability. This increased durability decreases the social cost of waste and increases the service flow from the durable product. Therefore, the optimal disposal fee is higher than the Pigouvian level in the closed-loop. Solid waste management, Design for environment, Disposal fee, Durability choice, Planned obsolescence 1 2019 73 5 2 Environmental and Resource Economics 33 50 http://link.springer.com/10.1007/s10640-018-0248-6 text/html Abstract Hiroshi Kinokuni Ritsumeikan University Shuichi Ohori ohori@kansai-u.ac.jp Kansai University Yasunobu Tomoda Kobe City University of Foreign Studies
oai:RePEc:kap:enreec:v:73:y:2019:i:1:d:10.1007_s10640-018-0253-92019-05-08RePEc:kap:enreec
article Optimal Environmental Policy for a Mine Under Polluting Waste Rocks and Stock Pollution Abstract This study analyzes socially optimal environmental policy for a mine with a model that takes into account waste or waste rock production and abatement possibilities of the mine. We develop a model, in which the mine produces an externality related to the waste rocks, such as acid mine drainage. We find that the extraction rate tends to be lower in a mine with higher waste rock production, and that the optimal tax on the waste rock production is strictly increasing in time. We extend the model to incorporate an additional externality in the form of a stock pollutant. We analyze the optimal taxes and show that the typical result that the time path of the tax on the stock pollutant is inverted U-shaped may be lost in a mine model with abatement possibility and fixed operation period. Emission taxation, Exhaustible resources, Mining, Optimal control, Stock pollution, Waste rock 1 2019 73 5 7 Environmental and Resource Economics 133 158 Q30 Q38 Q50 Q58 http://link.springer.com/10.1007/s10640-018-0253-9 text/html Abstract Pauli Lappi pauli.lappi@helsinki.fi University of Helsinki Markku Ollikainen University of Helsinki
oai:RePEc:kap:enreec:v::y::i::d:10.1007_s10640-020-00427-y2020-05-13RePEc:kap:enreec
article Editorial: EAERE, ERE and the Research Challenges of the Coronavirus Pandemic Environmental and Resource Economics 1 5 http://link.springer.com/10.1007/s10640-020-00427-y text/html Abstract Ian J. Bateman i.bateman@exeter.ac.uk University of Exeter Business School (UEBS) Paul Neetzow paul.neetzow@hu-berlin.de Humboldt-Universität Zu Berlin Klaus Eisenack klaus.eisenack@hu-berlin.de Humboldt-Universität Zu Berlin Georg Meran Technische Universität Berlin
oai:RePEc:kap:enreec:v:84:y:2023:i:2:d:10.1007_s10640-022-00734-62023-01-25RePEc:kap:enreec
article Environmental Policy and the CO2 Emissions Embodied in International Trade Abstract As polices to curb carbon emissions are not implemented similarly across countries, a so-called “carbon leakage” may offset domestic carbon reductions at the global level by redirecting CO2-intensive production to places with less stringent environmental regulation. This article uses a standard gravity model with panel data to assess whether a tightening in environmental policy plays as an incentive to offshore highly polluting activities. Our results show no evidence of carbon leakage through international trade, as stringent environment policy leads generally to a reduction in CO2 emissions embodied in traded goods and services, both at aggregate and sectoral levels. However, we do find evidence of carbon leakage when considering imports from countries with the most stringent environmental policy, suggesting the need for economies committed to carbon neutrality targets to tackle the issue of global cooperation on climate policy. CO2 emissions, International trade, Panel data models 2 2023 84 2 6 Environmental and Resource Economics 507 527 C32 F18 Q56 http://link.springer.com/10.1007/s10640-022-00734-6 text/html Abstract Koutchogna Kokou Edem Assogbavi koutchogna-kokou.assogbavi@u-bordeaux.fr Banque de France, Univ. Bordeaux Stéphane Dées stephane.dees@banque-france.fr Banque de France, Univ. Bordeaux Banque de France
oai:RePEc:kap:enreec:v:84:y:2023:i:2:d:10.1007_s10640-022-00720-y2023-01-25RePEc:kap:enreec
article An Agri-environmental Scheme for Reducing Inputs Subjected to Accidental Spillage: An Application to Agricultural Burnings by Smallholders Abstract Command-and-control (CAC) is the dominant approach for regulating agricultural fires in developing countries, despite its negative impact on low-income smallholders. Agri-environmental schemes are emerging as an alternative and this paper presents a scheme for hiring the reduction of inputs liable to be accidentally spilled. This is applied to burned area reduction by smallholders, with the governmental principal exposed to great risk due to the coupling of the need to advance subsidy and unobservability of both intended burned area and heterogeneous reduction cost. Optimal contract menus were derived for three situations differing in the number of contracts in which non-compliance could be detected irrespective of accidents’ size. A rate of 99% of the perfect information efficiency was achieved, as revealed by a numerical simulation based on a range of Brazilian Amazon datasources, including a discrete choice experiment, satellite fire data and mechanization cost. Results were robust to parametric sensitivity analysis, which also pointed to a small contribution by high cost smallholders of up to 10% of total reduction. CAC proved inefficient by pooling together smallholders differing substantially on cost, revealing that contracts are recommendable as a better policy option. Contract theory, Agri-environmental scheme, Accidental spillage, Agricultural fires, Smallholders, Amazon 2 2023 84 2 2 Environmental and Resource Economics 383 408 Q18 Q52 Q58 http://link.springer.com/10.1007/s10640-022-00720-y text/html Abstract Thiago Morello fonseca.morello@ufabc.edu.br Alameda da Universidade, Federal University of ABC
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article A Framework for Estimating the Impact of Monitoring and Enforcement on (Unobserved) Illicit Extraction Abstract In this study, we develop a method to estimate the relationship between monitoring and enforcement (M&E) effort and a key but unobserved variable: non-recorded extraction of a natural resource (e.g., illegal fishing). We use a stochastic frontier model for the growth rate of the resource and decompose the technical inefficiency term into non-recorded extraction and true-inefficiency. In cases where true-inefficiency is independent of M&E, the parameter estimate for M&E effort directly identifies its marginal effect on non-recorded extraction. This approach is applicable to a wide range of natural resources, where the observed growth rate of the resource depends heavily on factors beyond human control, such as environmental conditions. Thus, this method provides a promising means for identifying illegal extraction that is typically unobservable to analysts and regulators. We demonstrate the usefulness of this approach through simulation and by applying the econometric framework to the Chilean abalone fishery. Common pool resources, Poaching, Misreporting, Stochastic production frontier, Illegal harvest 2 2023 84 2 10 Environmental and Resource Economics 627 647 Q22 K42 D71 http://link.springer.com/10.1007/s10640-022-00740-8 text/html Abstract Felipe J. Quezada fequezad@ucsc.edu University of California Santa Cruz Nathan W. Chan nchan@umass.edu University of Massachusetts Amherst
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article The Economic Value of Coastal Amenities: Evidence from Beach Capitalization Effects in Peer-to-Peer Markets Abstract Coastal amenities are public goods that represent an important attraction for tourism activities. This paper studies the capitalization effects of beach characteristics using hedonic pricing methods. We examine the implicit economic value of several beach characteristics like sand type, width, longitude, accessibility, or frontage in the Airbnb rental market. Using data for 16, 663 Airbnb listings located in 67 municipalities of the Balearic Islands (Spain) during the summer of 2016, together with detailed information about the attributes of 263 beaches, our modelling approach considers interaction terms between the beach amenities and distance to the closest beach. Controlling for a set of listings’ structural characteristics, host attributes and municipality fixed effects, we find that Airbnb guests attach economic value to beach length, the presence of vegetation, the type of coastal frontage and beach accessibility and exclusivity. However, there is no evidence of capitalization effects associated with beach width or the type of sand. Hedonic pricing, coastal amenities, Capitalization effects, Peer-to-peer markets, Distance decay 2 2023 84 2 7 Environmental and Resource Economics 529 557 http://link.springer.com/10.1007/s10640-022-00735-5 text/html Abstract David Boto-García botodavid@uniovi.es University of Oviedo Veronica Leoni veronica.leoni3@unibo.it University of Bologna University of the Balearic Islands
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article Negotiations over the Provision of Multiple Ecosystem Services Abstract This paper analyzes the provision of multiple ecosystem services (ES) by several providers (e.g. farmers) and the negotiation process over their payments by many beneficiaries, who are each interested in one specific type of ES. We determine the main factors that influence the beneficiaries and providers’ preferences to negotiate individually or collectively. These factors are the number of providers, the marginal product of ecosystem acreage, and the cost/benefit ratio of ecosystem conservation through the payment for ecosystem services (PES). Using Nash-in-Nash bargaining, we show that four Nash equilibria can emerge. In equilibrium, beneficiaries and providers can both negotiate individually or collectively while facing opponents acting individually or collectively. We provide a welfare characterization of all the four equilibria that arise from the bargaining game. We show that the two equilibria in which beneficiaries negotiate collectively can implement the first-best. Payments for Ecosystem Services (PES), Multiple Purchasers, Collective PES, Bilateral Bargaining, Nash-in-Nash 2 2023 84 2 5 Environmental and Resource Economics 475 506 Q15 Q24 Q26 Q28 Q57 Q58 http://link.springer.com/10.1007/s10640-022-00730-w text/html Abstract Alain-Désiré Nimubona animubona@uwaterloo.ca University of Waterloo CIRANO Ahmet Ozkardas University of Waterloo Jean-Christophe Pereau Université de Bordeaux
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article Patents and P2: Innovation and Technology Adoption for Environmental Improvements Abstract In this paper, we identify factors that influence adoption of two types of environmental innovations, environmental patents and pollution prevention (P2) activities, and then measure the resulting influence of each on the pollution profile of the firm. We find that environmental patenting is most strongly driven by the technological capacity of the firm, including prior environmental patenting and prior P2 adoptions. While P2 activities are also influenced by prior adoptions of P2, other factors play an important role, including environmental innovation opportunities, the regulatory environment, and firm-specific characteristics. In terms of environmental outcomes, we find that both environmental technologies reduce pollution. Due to strong knowledge accumulation effects of environmental patents, the long-term impact of an environmental patent is stronger and longer lasting than the long-term impact of a P2 practice. Environmental patents, GMM, Innovation, Knowledge accumulation, Pollution prevention, Technology adoption, Toxic releases 2 2023 84 2 4 Environmental and Resource Economics 439 474 Q55 O31 Q53 http://link.springer.com/10.1007/s10640-022-00729-3 text/html Abstract Keith Brouhle brouhlek@grinnell.edu Grinnell College Brad Graham grahambj@grinnell.edu Grinnell College Donna Ramirez Harrington djramire@uvm.edu University of Vermont
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article Assessing the Economic Resilience of Different Management Systems to Severe Forest Disturbance Abstract Given the drastic changes in the environment, resilience is a key focus of ecosystem management. Yet, the quantification of the different dimensions of resilience remains challenging, particularly for long-lived systems such as forests. Here we present an analytical framework to study the economic resilience of different forest management systems, focusing on the rate of economic recovery after severe disturbance. Our framework quantifies the post-disturbance gain in the present value of a forest relative to a benchmark system as an indicator of economic resilience. Forest values and silvicultural interventions were determined endogenously from an optimization model and account for risks affecting tree survival. We consider the effects of differences in forest structure and tree growth post disturbance on economic resilience. We demonstrate our approach by comparing the economic resilience of continuous cover forestry against a clear fell system for typical conditions in Central Europe. Continuous cover forestry had both higher economic return and higher economic resilience than the clear fell system. The economic recovery from disturbance in the continuous cover system was between 18.2 and 51.5% faster than in the clear fell system, resulting in present value gains of between 1733 and 4535 € ha−1. The advantage of the continuous cover system increased with discount rate and stand age, and was driven by differences in both stand structure and economic return. We conclude that continuous cover systems can help to address the economic impacts of increasing disturbances in forest management. Disturbance economics, Engineering resilience, Present value, Willingness to pay for forestland, Forest value, Continuous cover forestry, Close to nature forestry, Tree mortality 2 2023 84 2 1 Environmental and Resource Economics 343 381 http://link.springer.com/10.1007/s10640-022-00719-5 text/html Abstract Thomas Knoke knoke@tum.de Technical University of Munich Carola Paul University of Goettingen Elizabeth Gosling Technical University of Munich Isabelle Jarisch Technical University of Munich Johannes Mohr Technical University of Munich Rupert Seidl Technical University of Munich
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article Weather-Related Home Damage and Subjective Well-Being Abstract Climate change is causing weather-related natural disasters to become both more frequent and more severe. We contribute to the literature on the economic impact of these disasters by using Australian data for the period 2009 to 2019 to estimate the effect of experiencing weather-related home damage on three measures of subjective well-being. Overall, we find little evidence of a statistically significant or sizable negative effect, on average, of weather-related home damage on subjective well-being. climate change, subjective wellbeing, weather Q54, I31 2 2023 84 2 3 Environmental and Resource Economics 409 438 http://link.springer.com/10.1007/s10640-022-00728-4 text/html Abstract Nicholas Gunby University of Canterbury Tom Coupé tom.coupe@canterbury.ac.nz University of Canterbury
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article The Impact of Government Disaster Surveillance and Alerts on Local Economic and Financial Conditions Abstract This paper examines how government alerts about a potential dam rupture affect Brazilian municipalities’ local economic and financial conditions. The dam collapses in Mariana (2015) and Brumadinho (2019) revealed the extent of losses that environmental disasters can cause in terms of human lives, flora, and fauna. This paper investigates the effects of government alerts regarding dams’ structural vulnerability on nearby municipalities. We focus on municipalities with dams classified as structurally vulnerable but ended up not collapsing. This approach disentangles the actual economic effects of the dam rupture from the information value of the government alert. These notifications have a detrimental impact on municipalities’ local economic and financial conditions: local consumption declines, labor markets concentrate on less industrialized sectors, and financial development decreases. We also find that the government alerts diffuse to neighboring municipalities with a magnitude inversely proportional to the neighboring municipality’s distance to the notified dam. Our findings highlight the importance of incorporating negative externalities associated with potential environmental disasters into mining companies’ costs as a way to mitigate disasters. Environmental risk, Mining disaster, Government alert, Surveillance, Spillover 2 2023 84 2 8 Environmental and Resource Economics 559 591 O4 Q01 Q51 Q53 Q56 http://link.springer.com/10.1007/s10640-022-00736-4 text/html Abstract Thiago Christiano Silva thiagochris@gmail.com thiago.csilva@p.ucb.br Universidade Católica de Brasília Universidade de São Paulo Fabiano José Muniz fabianojmuniz@gmail.com Universidade Católica de Brasília Benjamin Miranda Tabak benjaminm.tabak@gmail.com FGV/EPPG Escola de Políticas Públicas e Governo, Fundação Getúlio Vargas (School of Public Policy and Government, Getulio Vargas Foundation)
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article Elections and Environmental Quality Abstract This paper investigates how political elections influence environmental quality. From this perspective, we rely on the reward-punishment hypothesis (RPH) developed by democratic accountability theories. RPH implies that legislators can be held accountable by voters for increased pollution and/or environmental disasters. Consequently, incumbent politicians tend to limit environmental degradation during election campaigns because voters may switch their political preference as punishment for such degradations. Using a panel data set of 67 developed democracies over the period 2002–2015, our estimates reveal that the environmental quality tends to improve during the periods of legislative elections mainly in non-OECD countries. Such results provide evidence of the capacity of voters to influence incumbent politicians to embrace pro-environmental behavior as legislative elections approach. CO2 emissions, Elections, Politicians, Voters, Democracy 2 2023 84 2 9 Environmental and Resource Economics 593 625 O13 P48 K32 http://link.springer.com/10.1007/s10640-022-00739-1 text/html Abstract Nicolae Stef nicolae.stef@bsb-education.com Université Bourgogne Franche-Comté Sami Ben Jabeur sbenjabeur@gmail.com Institute of Sustainable Business and Organizations, Sciences and Humanities Confluence Research Center - UCLY, ESDES
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article When is Environmentalism Good for the Environment? Abstract We study how the supply of environmentalism, which is defined by psychic benefits (costs) associated with the purchase of high-environmental (low-environmental) qualities, affects the way firms choose their prices and products and the ensuing consequences for the global level of pollution. Contrary to general belief, a high supply of environmentalism does not necessarily give rise to a better environmental outcome because it endows the green firms with more market power which they use to charge higher prices. Nonetheless, environmentalism can be used to effectively complement more traditional policy instruments such as a minimum environmental standard. Environmentalism, Psychic costs and benefits, Vertical product differentiation, Environmental policy 1 2022 82 5 1 Environmental and Resource Economics 1 28 D11 L13 Q50 http://link.springer.com/10.1007/s10640-022-00655-4 text/html Abstract Marco A. Marini marco.marini@uniroma1.it Sapienza Università di Roma Ornella Tarola ornella.tarola@uniroma1.it Sapienza Università di Roma Jacques-François Thisse jacques.thisse@uclouvain.be CORE-UCLouvain CEPR
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article Structuring Communication Effectively—The Causal Effects of Communication Elements on Cooperation in Social Dilemmas Abstract Many environmental problems represent social dilemma situations where individually rational behaviour leads to collectively suboptimal outcomes. Communication has been found to alleviate the dilemma and stimulate cooperation in these situations. Yet, the knowledge of the basic elements, i.e. the types of information that need to be provided and exchanged to make communication effective, is still incomplete. Previous research relies on ex post methods, i.e. after conducting an experiment researchers analyse what information was shared during the communication phase. By nature, this ex post categorization is endogenous. In this study, we identify the basic elements of effective communication ex ante and evaluate their impact in a more controlled way. Based on the findings of previous studies, we identify four cooperation-enhancing elements of communication: (i) problem awareness, (ii) identification of strategies, (iii) agreement, and (iv) ratification. In a laboratory experiment with 560 participants, we implement interventions representing these components and contrast the resulting levels of cooperation with the outcomes under free (unstructured) or no communication. We find that the intervention facilitating agreement on a common strategy (combination of (ii) and (iii)) is particularly powerful in boosting cooperation. And if this is combined with interventions promoting problem awareness and ratification, similar cooperation levels as in settings with free-form communication can be reached. Our results are relevant not only from an analytical perspective, but also provide insights for social dilemma situations in which effective communication processes cannot be successfully self-organized, calling for some form of external, structured facilitation or moderation. Social dilemma, Public good, Effective communication, Cooperation, Deliberation 4 2021 79 8 3 Environmental and Resource Economics 683 712 C71 C92 H41 Q48 Q59 http://link.springer.com/10.1007/s10640-021-00552-2 text/html Abstract Ann-Kathrin Koessler akoessler@uni-osnabrueck.de University of Osnabrueck Juan Felipe Ortiz-Riomalo University of Osnabrueck Mathias Janke University of Osnabrueck Stefanie Engel University of Osnabrueck
oai:RePEc:kap:enreec:v:79:y:2021:i:4:d:10.1007_s10640-020-00522-02021-08-20RePEc:kap:enreec
article The Effect of Peer Comparisons on Polluters: A Randomized Field Experiment among Wastewater Dischargers Abstract Peer comparisons combine descriptive and injunctive messages about social norms. In experiments, these comparisons have encouraged pro-environmental behaviors among consumers. Consumers, however, are not the only sources of environmental externalities. Firms and other organizations also damage the environment. Yet organizations may not respond to peer comparisons in the same way that consumers respond because organizations have different objectives, constraints, and decision-making processes. In a pre-registered field experiment with 328 municipal wastewater treatment facilities in Kansas, we randomly sent some facilities a certified letter that contrasted, using text and a graphic, each facility’s discharge behavior to the behaviors of other facilities in the state. We estimate the effect of these peer comparisons on the degree to which the recipient facilities complied with discharge limits under the U.S. Clean Water Act. On average, letter recipients reported discharge ratios 8% lower than non-recipients in the eighteen-month period after letters were sent (95% CI [-15%, -1%]), although we cannot detect an effect in all post-treatment quarters. We believe that the results warrant further experimental replications and extensions to examine the cost-effectiveness of reducing pollution through peer comparisons. Randomized controlled trial, Regulatory compliance, Social comparisons, Nudges, Voluntary approaches, Pollution, Environmental management D23, D91, K32, K42, Q53, Q58 4 2021 79 8 1 Environmental and Resource Economics 627 652 http://link.springer.com/10.1007/s10640-020-00522-0 text/html Abstract Dietrich Earnhart earnhart@ku.edu University of Kansas Paul J. Ferraro pferraro@jhu.edu Johns Hopkins University
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article Nudging for Cleaner Air: Experimental Evidence from an RCT on Wood Stove Usage Abstract Air pollution from wood burning is a serious problem in the developing world. In the cities of south-central Chile, households experience extremely high ambient air pollution levels due to massive combustion of wood as fuel for residential heating. To address this problem, in recent years new residential wood stoves—equipped with improved combustion technologies that are designed to be less-polluting—have replaced high-polluting ones. However, users’ behaviour in operating these improved stoves is a key factor that drives actual emissions. When users ‘choke the damper’ to extend the burning time of their wood fuel, it constrains the air flow in the wood stoves and creates a highly polluting combustion process. To address this issue, a behavioural intervention was designed to provide users with real-time feedback on their wood stoves’ air pollution emissions with the goal of ‘nudging’ them to use their stoves in a less polluting way. The intervention consists of an information sign that aligns with the wood stove’s damper lever and informs users about pollution emission levels according to the chosen setting of the wood stove’s damper. The information sign is complemented by the visit of a field assistant that explains the sign and provides an informational flyer (fridge magnet). To assess the effectiveness of this behavioural intervention a randomized controlled trial was conducted with selected households in the city of Valdivia, Chile. Results from this intervention show that households that were provided with the information sign reduced the frequency with which they used the most polluting settings of their stoves, inducing a behavioural change that results in a 10.8% reduction in residential pollution emissions. Air pollution, Behavioural intervention, Environment and development, Field experiment, Wood stoves 4 2021 79 8 4 Environmental and Resource Economics 713 743 C93 D90 O13 Q53 Q56 http://link.springer.com/10.1007/s10640-021-00582-w text/html Abstract J. Cristobal Ruiz-Tagle cristobal.ruiztagle@gmail.com London School of Economics and Political Science Alejandra Schueftan Universidad Austral de Chile, and Forestry Institute
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article Can Reminders of Rules Induce Compliance? Experimental Evidence from a Common Pool Resource Setting Abstract This paper presents results from an RCT exploring whether a behavioural intervention can improve the conservation of a common pool resource. The literature on common pool resource management suggests that the existence of rules and sanctions is important to resource conservation. However, behavioural science suggests that individuals have finite cognitive capacity and may not be attentive to these rules and sanctions. This paper investigates the impact of an SMS message intervention designed to improve users’ knowledge of and attentiveness to existing forest use rules. An RCT in Uganda explores the impact of these messages on forest use and compliance with the rules. This paper finds that SMS messages raise the perceived probability of sanctions for rule-breakers. However, SMS messages do not induce full compliance with forest use rules or systematically reduce forest use. Common pool resources, Forest, Deforestation, SMS messages, Use rules, Sanctioning 4 2021 79 8 2 Environmental and Resource Economics 653 681 Q2 Q56 O13 http://link.springer.com/10.1007/s10640-020-00526-w text/html Abstract Sabrina Eisenbarth s.eisenbarth@exeter.ac.uk University of Exeter Business School Louis Graham louis.graham@busaracenter.org Busara Center For Behavioral Economics Anouk S. Rigterink anouk.rigterink@durham.ac.uk Durham University School of Government and International Affairs
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article Environmental Impacts and Policy Responses to Covid-19: A View from Latin America Abstract COVID-19 is currently having major short run effects with possible serious long run implications for the environment and the management of natural resources in Latin America. We discuss the possible effects of the pandemic on air pollution, deforestation and other relevant environmental dimensions across the region. With contributions from environmental economists from eight countries, we give an overview of the initial and expected environmental effects of this health crisis. We discuss potential effects on environmental regulations, possible policy interventions, and an agenda for future research for those interested in the design and evaluation of environmental policies relevant for the Latin American context. Air pollution, COVID-19, Coronavirus, Deforestation, Environmental impacts, Environmental policy, Latin America, Pandemic, SARS-Cov2-19 Environmental and Resource Economics 1 6 H12 Q22 Q23 Q53 Q56 http://link.springer.com/10.1007/s10640-020-00460-x text/html Abstract Alejandro López-Feldman alejandro.lopez@cide.edu Tecnológico de Monterrey Centro de Investigación y Docencia Económicas (CIDE) Carlos Chávez Universidad de Talca Interdisciplinary Center for Aquaculture Research (INCAR) María Alejandra Vélez Universidad de los Andes Hernán Bejarano Centro de Investigación y Docencia Económicas (CIDE) Ariaster B. Chimeli Universidad de São Paulo José Féres Instituto de Pesquisa Econômica Aplicada (IPEA) Juan Robalino Universidad de Costa Rica Rodrigo Salcedo Universidad del Pacífico César Viteri Charles Darwin Foundation
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article A Study on Herd Immunity of COVID-19 in South Korea: Using a Stochastic Economic-Epidemiological Model Abstract Vaccination is an effective measure to control the diffusion of infectious disease such as COVID-19. This paper analyzes the basic reproduction number in South Korea which enables us to identify a necessary level of vaccine stockpile to achieve herd immunity. An susceptible-infected-susceptible model is adopted that allows a stochastic diffusion. The result shows that the basic reproduction number of South Korea is approximately 2 which is substantially lower than those of the other regions. The herd immunity calculated from economic-epidemiological model suggests that at least 62% of the susceptible population be vaccinated when COVID-19 vaccine becomes available. COVID-19, Vaccination stockpile, SIS, Stochastic disease Environmental and Resource Economics 1 6 D81 I18 http://link.springer.com/10.1007/s10640-020-00439-8 text/html Abstract Hojeong Park hjeongpark@korea.ac.kr Korea University Korea University Songhee H. Kim Yonsei University Yonsei University
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article Green Recovery Policies for the COVID-19 Crisis: Modelling the Impact on the Economy and Greenhouse Gas Emissions Abstract The COVID-19 pandemic induces the worst economic downturn since the Second World War, requiring governments to design large-scale recovery plans to overcome this crisis. This paper quantitatively assesses the potential of government investments in eco-friendly construction projects to boost the economy and simultaneously realise environmental gains through reduced energy consumption and related greenhouse gas emissions. The analysis uses a Computable General Equilibrium model that examines the macroeconomic impact of the COVID-19 crisis in a small open economy (Belgium). Subsequently, the impact of the proposed policy is assessed through comparative analysis for macroeconomic parameters as well as CO2 equivalent emissions for four scenarios. Our findings demonstrate that the COVID-19 pandemic damages economies considerably, however, the reduction in emissions is less than proportionate. Still, well-designed public policies can reverse this trend, achieving both economic growth and a disproportionally large decrease in emissions. Moreover, the positive effect of such a decoupling policy on GDP is even stronger during the pandemic than compared to the pre-COVID-19 period. This is the result of a targeted, investment-induced green transition towards low energy-intensive economic activities. Finally, this paper describes how the net effect on the government budget is positive through the indirect gains of the economic uptake. CGE model, Climate change, COVID-19, Economic recession, Greenhouse gas emissions, Pandemic, Policy analysis, Recovery plans, Small open economy, Sustainable investment Environmental and Resource Economics 1 20 http://link.springer.com/10.1007/s10640-020-00454-9 text/html Abstract B. Lahcen bart.lahcen@vito.be VITO, Unit of Sustainable Materials Center for Economics and Corporate Sustainability (CEDON) KU Leuven J. Brusselaers VITO, Unit of Sustainable Materials K. Vrancken VITO, Unit of Sustainable Materials Y. Dams VITO, Unit of Sustainable Materials C. Silva Paes Ghent University J. Eyckmans Center for Economics and Corporate Sustainability (CEDON) KU Leuven S. Rousseau Center for Economics and Corporate Sustainability (CEDON) KU Leuven
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article Economic Valuation of the Threat Posed by the Establishment of the Asian Tiger Mosquito in Australia Abstract Invasive species policy could be better informed if we understood how much people value reductions in the risks posed by these organisms. This study investigates the public’s willingness to pay (WTP) for additional measures to reduce the risk of invasion of the Australian mainland by the Asian tiger mosquito (ATM). The study contributes to the literature by applying a stated preference method to estimate the public’s WTP to reduce the risk of an ATM invasion, expressed as a change in probability. It is the first ex ante invasive species analysis to test over two discrete invasion reduction probabilities based on management effort. Further, to overcome the challenges in valuing changes in probabilities, the study presented respondents with a well-defined discrete difference in the final probability, with one scenario reducing risk from 50 to 25% and the other from 50 to 5%. We find a significant difference in the mean WTP values between these two scenarios (A$67 vs. A$90). The overall conclusion is that estimated benefits of reducing the probability of an ATM incursion outweigh the costs. Invasive species, Asian tiger mosquito, Willingness to pay, Contingent valuation 2 2018 71 10 3 Environmental and Resource Economics 357 379 http://link.springer.com/10.1007/s10640-017-0158-z text/html Abstract Paul Mwebaze paul.mwebaze@csiro.au mpaul48@hotmail.com The Commonwealth Scientific and Industrial Research Organisation (CSIRO) Jeff Bennett The Australian National University Nigel W. Beebe The Commonwealth Scientific and Industrial Research Organisation (CSIRO) University of Queensland Gregor J. Devine QIMR Berghofer Medical Research Institute Paul Barro The Commonwealth Scientific and Industrial Research Organisation (CSIRO)
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article Understanding Hurricane Evacuation Decisions Under Contingent Scenarios: A Stated Preference Approach Abstract We conduct a stated preference analysis to understand the factors that individual households take into consideration to evacuate during hurricanes. In designing the contingent scenarios for evacuation, we randomly assign varying levels of hurricane characteristics (wind speed, lead time for landfall and the height of storm surge) combined with different types of emergency management options (voluntary versus mandatory evacuation order and a voucher with varying amounts to cover evacuation expenses). Findings indicate that individual households respond, in a non-linear fashion, to the intensity of hurricanes when making evacuation decisions. Respondents are also more likely to evacuate when the storm surge reaches a certain threshold. In terms of policy interventions, mandatory evacuation orders are more effective to increase the likelihood of evacuation. The potential intervention in the form of providing evacuation vouchers to assist households to cover their expenses (e.g. for food, water, transportation and lodging) also seems effective. We discuss policy implications of our findings. Hurricane, Evacuation, Stated preference, Contingent behavior, Evacuation order, Voucher 2 2018 71 10 5 Environmental and Resource Economics 407 425 http://link.springer.com/10.1007/s10640-017-0163-2 text/html Abstract Pallab Mozumder mozumder@fiu.edu Florida International University Florida International University William F. Vásquez wvasquez@fairfield.edu Fairfield University
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article Does FDI Bring Environmental Knowledge Spillovers to Developing Countries? The Role of the Local Industrial Structure Abstract This paper examines the environmental knowledge externalities of FDI within and across cities in an emerging economy context. It argues that the extent of these environmental externalities is contingent upon local industrial agglomeration. Using a panel dataset of 280 Chinese prefectural cities from 2003 to 2012, we employ a spatial economic approach. Although limited to evidence from soot and $$\hbox {SO}_{2}$$ SO 2 pollutants, our results suggest that FDI brings overall positive environmental knowledge externalities to a region, and also spillovers to nearby regions. Specialised cities may lock into a particular technological path, attenuating the absorption and diffusion of a variety of FDI environmental knowledge. Conversely, diversified cities promote cross-fertilisation of environmental knowledge and mitigate local pollution intensity at the aggregated city level. This study adds to the literature by highlighting the importance of considering both the spatiality of FDI and industrial structure in understanding FDI environmental knowledge spillovers. Foreign direct investment, Pollution, Industrial agglomeration, Specialisation, Diversity, China 2 2018 71 10 4 Environmental and Resource Economics 381 405 L52 O33 O53 R12 R58 http://link.springer.com/10.1007/s10640-017-0159-y text/html Abstract Lutao Ning L.ning@qmul.ac.uk University of London Fan Wang fan.wang@qmul.ac.uk University of London
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article Climate Change Mitigation with Technology Spillovers Abstract We explore the implications of an increase in clean technology spillovers between developed and developing countries. We build a game of abatements in which players are linked with technology spillovers determined by an initial choice of absorptive capacities by developing countries. We show that, within a non-cooperative framework, the response of clean technology investments in developed countries to an increase in cross-country technology spillovers is ambiguous. If the marginal benefits of these additional abatements are not sufficiently high, developed countries have a strategic incentive to decrease investments. Such a strategic response jeopardizes the initial effects of an increase in technology spillovers on climate change mitigation and decreases the incentives for developing countries to enhance their absorptive capacities. Climate change, Cross-country spillovers, Abatements, Technology investments 2 2018 71 10 9 Environmental and Resource Economics 507 527 H40 Q54 Q55 Q56 http://link.springer.com/10.1007/s10640-017-0170-3 text/html Abstract Renaud Foucart renaud.foucart@hu-berlin.de Humboldt University Grégoire Garsous gregoire.garsous@gmail.com Université libre de Bruxelles, ECARES
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article Brown Growth, Green Growth, and the Efficiency of Urbanization Abstract We analyze the efficiency of urbanization patterns in a stylized dynamic model of urban growth with three sectors of production. Pollution, as a force that discourages agglomeration, is caused by domestic production. We show that cities are too large and too few in number in uncoordinated equilibrium if economic growth implies increasing pollution (‘brown growth’). If, however, production becomes cleaner over time (‘green growth’) the equilibrium urbanization path reaches the efficient urbanization path after finite time without need of a coordinating mechanism. We also generalize these results by taking other forms of congestion and urban land markets into account. Urbanization, Green growth, Migration, Pollution, Congestion 2 2018 71 10 10 Environmental and Resource Economics 529 549 O18 Q56 R12 http://link.springer.com/10.1007/s10640-017-0172-1 text/html Abstract Martin F. Quaas quaas@economics.uni-kiel.de University of Kiel Sjak Smulders Tilburg University
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article Municipal Solid Waste, Market Competition and the EU Policy Abstract Two of the main pillars of the EU solid waste policy are the Proximity Principle and the Self-Sufficiency Principle. According to those, waste should be disposed as close as possible to where it has been produced. A likely effect of such provision is to prevent competition from neighbouring areas and increase the market power of local disposers, with possible undesirable consequences for other firms in the vertical chain. We show through a simple spatial model that one additional effect of the Proximity Principle and of the Self-Sufficiency Principle is to provide an incentive to collectors and waste producers to increase the amount of separated waste. EU municipal waste policy, Self-Sufficiency Principle, Proximity Principle 2 2018 71 10 7 Environmental and Resource Economics 457 474 Q53 L13 L44 http://link.springer.com/10.1007/s10640-017-0165-0 text/html Abstract Carlo Reggiani carlo.reggiani@manchester.ac.uk University of Manchester Francesco Silvestri slvfnc1@unife.it University of Ferrara
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article Can Technology-Specific Deployment Policies Be Cost-Effective? The Case of Renewable Energy Support Schemes Abstract While there is relatively limited disagreement on the general need for supporting the deployment of renewable energy sources for electricity generation (RES-E), there are diverging views on whether the granted support levels should be technology-neutral or technology-specific. In this review paper we question the frequently stressed argument that technology-neutral schemes will promote RES-E deployment cost-effectively. We use a simple partial equilibrium model of the electricity sector with one representative investor as a vehicle to synthesize the existing literature, and review potential rationales for technology-specific RES-E support. The analysis addresses market failures associated with technological development, long-term risk taking, path dependencies as well as various external costs, all of which drive a wedge between the private and the social costs of RES-E deployment. Based on analytical insight and a review of empirical literature, we conclude that the relevance of these market failures is typically heterogeneous across different RES-E technologies. The paper also discusses a number of possible caveats to implementing cost-effective technology-specific support schemes in practice, including the role of various informational and politico-economic constraints. While these considerations involve important challenges, neither of them suggests an unambiguous plea for technology-neutral RES-E support policies either. We close by highlighting principles for careful RES-E policy design, and by outlining four important avenues for future research. Technology development, Renewable energy sources, Support schemes, Cost-effectiveness 2 2018 71 10 8 Environmental and Resource Economics 475 505 H23 O33 Q42 http://link.springer.com/10.1007/s10640-017-0169-9 text/html Abstract Paul Lehmann paul.lehmann@ufz.de Helmholtz Centre for Environmental Research – UFZ Patrik Söderholm patrik.soderholm@ltu.se Luleå University of Technology
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article Converting Forests to Farms: The Economic Benefits of Clearing Forests in Agricultural Settlements in the Amazon Abstract Agricultural expansion into tropical forests is believed to bring local economic benefits at the expense of global environmental costs. The resulting tension is reflected in Brazilian government policy. The national agrarian reform program has settled farm families in the Amazon region since the 1970s, with the expectation that they will clear forests in order to farm the land. On the other hand, recent Brazilian policy initiatives seek to reduce deforestation to mitigate climate change. We contribute to the policy debate that surrounds these dual goals for the Amazon by estimating the marginal effects of new agricultural land on the full income and assets of farm settlers over a 13-year period from 1996 to 2009. Using micro panel data from agrarian settlements where forest was being rapidly cleared, and controlling for factors that would otherwise confound the relationship, we estimate the effect of converting forest to agriculture on total household income to estimate the opportunity cost of conserving forest. Our measure of income reflects any re-allocation of resources by utility maximizing households and any productivity effects due to loss of forest ecosystem services. The estimated effect of new agricultural land on income is positive, but small relative to the income per hectare of previously cleared land. However, we show that income increases investment in physical assets, which raises households’ income generating capacity and future accumulation of assets. Thus, while there is only a small immediate income gain from clearing more forest, the long-term effects on wealth are still substantial. This demonstrates that given the right conditions, conversion of forest to agricultural land can be an impetus for asset accumulation by smallholders. It also highlights the importance of considering the indirect and long-term welfare benefits of new agricultural land when assessing the opportunity costs of forest conservation. Brazil, Deforestation, Welfare, Agrarian settlement, Dynamic panel 2 2018 71 10 6 Environmental and Resource Economics 427 455 http://link.springer.com/10.1007/s10640-017-0164-1 text/html Abstract Katrina Mullan katrina.mullan@umontana.edu University of Montana Erin Sills sills@nscu.edu North Carolina State University Subhrendu K. Pattanayak subhrendu.pattanayak@duke.edu Duke University Jill Caviglia-Harris jlcaviglia-harris@salisbury.edu Salisbury University
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article Information Exchange and Transnational Environmental Problems Abstract This paper analyzes information exchange in a model of transnational pollution control in which countries use private information in independently determining their domestic environmental policies. We show that countries may not always have an incentive to exchange their private information. However, for a sufficiently high degree of predictability of domestic environmental policy processes, the expected welfare from sharing information is greater than the expected welfare from keeping it private. The minimum degree of policy predictability for which information sharing occurs increases with the level of environmental risk. Intuitively, information exchange can help mitigate the perception of global uncertainty (both political and scientific) that surrounds transnational environmental problems and potentially improve welfare if policymaking processes are sufficiently aligned with evidence-based approaches (predictable). Information exchange, Uncertainty, Private information, Environmental policy, Policy predictability, Transnational pollution, Bayesian game approach 2 2018 71 10 12 Environmental and Resource Economics 583 604 D8 Q5 F5 http://link.springer.com/10.1007/s10640-017-0174-z text/html Abstract Johnson Kakeu justin.kakeu@morehouse.edu Morehouse College Erik Paul Johnson ejohnson11@carthage.edu Carthage College
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article Groundwater Management in a Food Security Context Abstract This article analyzes the sustainability of market-based instruments such as tradable permits for the management of a renewable aquifer used for irrigated agriculture. In our dynamic hydro-economic model, a water agency aims at satisfying a food security constraint within a tradable permit scheme in the presence of myopic heterogeneous agents. We identify analytically the viability kernel that defines the states of the resource yielding inter-temporal feasible paths able to satisfy the set of constraints over time and the associated set of viable quota policies. We then illustrate the theoretical results of the paper with numerical simulations based on the Western La Mancha aquifer. Groundwater, Agriculture, Irrigation, Food security, Individual permits, Sustainability, Dynamic model, Viability kernel 2 2018 71 10 1 Environmental and Resource Economics 319 336 Q15 Q25 C61 http://link.springer.com/10.1007/s10640-017-0154-3 text/html Abstract Jean-Christophe Pereau jean-christophe.pereau@u-bordeaux.fr Université de Bordeaux Lauriane Mouysset lauriane.mouysset@u-bordeaux.fr CNRS INRA Luc Doyen luc.doyen@u-bordeaux.fr CNRS
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article The Impact of the European Emission Trading Scheme on Multiple Measures of Economic Performance Abstract The European Emission Trading Scheme (EU ETS) has introduced a price for carbon, thus generating an additional cost for companies that are regulated by the scheme. The objective of this paper is to provide empirical evidence on the effect of the EU ETS on firm-level economic performance. There is a growing body of empirical literature that investigates the effects of the EU ETS on firm economic performance, with mixed results. Differently from the previous literature, we test the effect of the EU ETS on a larger set of indicators of economic performance: employment, average wages, turnover, value added, markup, investment, labour productivity, total factor productivity and ROI. Our results, based on a large panel of European firms, provide a broad picture of the economic impact of the EU ETS in its first and second phases of implementation. Contrarily to the expectations, the EU ETS did not affect economic performance negatively. Results suggest that firms have reacted to the EU ETS by passing-through costs to their customers on the one hand and improving labour productivity on the other hand. European Emission Trading Scheme, Economic performance, Propensity score matching, Difference-in-differences 2 2018 71 10 11 Environmental and Resource Economics 551 582 Q52 Q58 http://link.springer.com/10.1007/s10640-017-0173-0 text/html Abstract Giovanni Marin giovanni.marin@uniurb.it Society and Politics. University of Urbino ‘Carlo Bo’ SEEDS Marianna Marino marianna.marino@icn-groupe.fr ICN Business School, Nancy/Metz Université de Lorraine Claudia Pellegrin claudia.pellegrin@epfl.ch College of Management of Technology (CEMI-CDM), École Polytechnique Fédérale de Lausanne (EPFL)
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article Structural Uncertainty and Pollution Control: Optimal Stringency with Unknown Pollution Sources Abstract We relax the common assumption that regulators know the structural relationship between emissions and ambient air quality with certainty. We find that uncertainty over this relationship can manifest as a unique form of multiplicative uncertainty in the marginal damages from emissions. We show how the optimal stringency of environmental regulation depends on this structural uncertainty. We also show how new information, like the discovery of previously unknown emission sources, can counterintuitively lead to increases in both optimal emissions and ambient pollution levels. Information, Regulation, Externalities 2 2018 71 10 2 Environmental and Resource Economics 337 355 Q58 D81 C11 Q53 http://link.springer.com/10.1007/s10640-017-0156-1 text/html Abstract Richard T. Carson UC San Diego Jacob LaRiviere jlarivi1@utk.edu University of Tennessee
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article The Climate Actions and Policies Measurement Framework: A Database to Monitor and Assess Countries’ Mitigation Action Abstract There are major gaps in the measurement of the adoption and stringency of countries’ climate actions and policies, notably in a manner coherent across countries, time, sectors, and instrument types. The Climate Actions and Policies Measurement Framework (CAPMF) aims to fill this gap. It is the most extensive structured and internationally harmonised climate mitigation policy database available to date. Currently, it comprises 130 policy variables, grouped into 56 policy instruments and other climate actions, covering 50 countries and the EU-27 as a block for the period 1990–2022. Results indicate that countries strengthened their climate action between 1990 and 2022 in terms of policy adoption and policy stringency, although at different paces. Policy adoption, policy stringency and policy mixes changed over time and differ substantially across countries and country groups. Importantly, regression analysis suggests a significant relationship between stronger climate action and greater emission reductions. Mitigation policies helped reduce emissions by about 12% in the last 5 years; most of this effect is attributable to a reduction in the energy intensity of the economy, and only residually to other factors such as a reduction of GHG intensity. Climate change, Climate policy, Climate action, Market-based instruments, Non market-based instruments, Policy instruments, Carbon pricing, Policy effectiveness 1 2024 87 1 6 Environmental and Resource Economics 191 217 H23 Q48 Q54 Q58 http://link.springer.com/10.1007/s10640-023-00821-2 text/html Abstract Daniel Nachtigall Daniel.Nachtigall@OECD.org Environment Directorate Luisa Lutz Environment Directorate Miguel Cárdenas Rodríguez Environment Directorate Filippo Maria D’Arcangelo Economics Department Ivan Haščič Environment Directorate Tobias Kruse Economics Department Rodrigo Pizarro Environment Directorate
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article Leaving Home: Cumulative Climate Shocks and Migration in Sub-Saharan Africa Abstract We combine a multi-country household panel dataset with high-resolution gridded precipitation data to investigate how cumulative climatic shocks affects the decision to leave the households in five sub-Saharan African countries. We find that while the effect of recent adverse weather shocks is on average modest, the cumulative effect of a persistent exposure to droughts over several years leads to a significant increase in the probability for a household member to leave the household. We speculate that this pattern can be indicative of increased migratory flows due to increase in the frequency of extremes. Climate shocks, Rural–urban migration, Economic development 1 2024 87 1 10 Environmental and Resource Economics 321 345 O15 O13 Q54 http://link.springer.com/10.1007/s10640-023-00826-x text/html Abstract Salvatore Falco Salvatore.difalco@unige.ch University of Geneva Anna B. Kis Geneva Graduate Institute Martina Viarengo Geneva Graduate Institute and Harvard University Utsoree Das University of Geneva
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article The Impact of Wind Energy on Air Pollution and Emergency Department Visits Abstract Using daily variation in wind power generation in the western portion of Texas, we show that the resulting lower fossil fuel generation in the eastern portion of the state leads to air-quality improvements and, subsequently, to fewer emergency department (ED) visits. Spatially, the impact on pollution is widespread, but wind energy reduces ED admission rates more in zip codes closer to coal plants. Using intra-day wind generation and electricity pricing data, we find that more wind generation coming from hours when congestion on the electricity grid is less leads to higher reductions in emissions from east Texas power plants and PM2.5 concentrations and ED admission rates in east Texas. Comparing wind generation effects across low-demand night hours to higher-demand day hours, more NO $$_\text {X}$$ X and SO $$_2$$ 2 is offset by wind from night hours, but the time-dependent effects for PM2.5 concentrations and ED admission rates is much weaker, potentially due to differences in exposure. Renewable energy, Wind energy, Air pollution, Morbidity, Emergency department visits 1 2024 87 1 9 Environmental and Resource Economics 287 320 http://link.springer.com/10.1007/s10640-023-00825-y text/html Abstract Harrison Fell hfell@ncsu.edu North Carolina State University Melinda Sandler Morrill melindamorrill@ncsu.edu North Carolina State University NBER
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article Wind Turbines and Property Values: A Meta-Regression Analysis Abstract A key concern for property owners about the set up of proximate wind turbines is the potential devaluation of their property. However, there is no consensus in the empirical hedonic literature estimating this price-distance relationship. It remains unclear if the proximity to wind turbines reduces, increases, or has no significant effect on property values. This article addresses this ambiguity, combining 720 estimates from 25 hedonic pricing studies in a first comprehensive meta-analysis on this topic. Using Bayesian model averaging techniques and novel publication bias correction methods, I calculate an average of the reported estimates that is free from misspecification and publication bias. In economic terms, I find an average reduction in property values of $$-0.68\%$$ - 0.68 % for properties 1.89 miles away, which turns to zero beyond 2.8 miles. Next to publication selection, the studies’ ability to control for confounding factors such as pre-existing price differentials and spatial effects explains the variance in reported effect sizes. Meta-analysis, Wind turbines, Property values, Hedonic pricing, Publication bias, Bayesian model averaging 1 2024 87 1 1 Environmental and Resource Economics 1 43 http://link.springer.com/10.1007/s10640-023-00809-y text/html Abstract Marvin Schütt schuett@economics.uni-kiel.de Kiel University
oai:RePEc:kap:enreec:v:87:y:2024:i:1:d:10.1007_s10640-023-00824-z2024-01-18RePEc:kap:enreec
article Promotion Incentives and Environmental Regulation: Evidence from China’s Environmental One-Vote Veto Evaluation Regime Abstract This paper applies a difference-in-differences approach to examine the effectiveness of China’s One-Vote Veto environmental regulation regime, which links pollution reduction targets with local officials’ promotion. Using a rich set of data for 286 Chinese cities, we show that the new political incentive induced significant tradeoff between economic growth and environmental protection. The regime shifts significantly reduced industrial SO2 emissions; however, the environmental improvement was limited only to the reduction of the targeted pollutants that are linked to performance evaluation. Firm-level evidence shows that emission reduction was mainly achieved by reducing new polluting production activities, increasing pollution abatement capacity and improving abatement performance. It is also found that compliance with emissions reduction targets indeed increases the promotion chances of local officials. Environmental regulation, Performance evaluation system, Local officials, Pollution reduction, Economic growth 1 2024 87 1 8 Environmental and Resource Economics 257 286 Q53 Q58 http://link.springer.com/10.1007/s10640-023-00824-z text/html Abstract Jianxin Wu twujianxin@jnu.edu.cn Jinan University Ziwei Feng fengziwei2018@126.com Guangzhou Panyu Polytechnic Chunbo Ma chunbo.ma@uwa.edu.au University of Western Australia
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article Corporate Social Responsibility, Environmental Emissions and Time-Consistent Taxation Abstract We formally model a Cournot duopoly market in which a corporate socially responsible (CSR) firm interacts with a profit-maximizing firm and where the market is regulated with an emission tax. We consider three different kinds of CSR firm behaviors: (i) consumer-friendly; (ii) environmentally-friendly; and (iii) consumer-environmentally friendly. Unlike most theoretical works within this literature, which typically use specific functional forms, we use general structures for the inverse demand function, the cost function, and for emission levels and damage functions. In terms of modeling strategy, we use two game-theoretic approaches: (i) a simultaneous game and (ii) a sequential three-stage ex-post game, in which decisions are time consistent. We found that the optimal emissions taxation rule is modified when considering different CSR motivations. We show that depending upon the CSR motivation and the price elasticity of demand in some cases we can obtain optimal emission tax rates higher, lower, or equal to marginal external emission. Finally, we also found that firms adopting consumer-friendly CSR behavior are more effective in improving the environment compared to environmentally friendly firms. Corporate social responsibility, Cournot duopoly, Emission abatement, Time-consistent emission tax 1 2024 87 1 7 Environmental and Resource Economics 219 255 L13 L31 H23 Q50 http://link.springer.com/10.1007/s10640-023-00822-1 text/html Abstract Mauricio G. Villena mauricio.villena@udp.cl Universidad Diego Portales María José Quinteros maria.quinteros.ca@usach.cl Universidad de Santiago de Chile
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article Nudging the Food Basket Green: The Effects of Commitment and Badges on the Carbon Footprint of Food Shopping Abstract We use an incentive-compatible experimental online supermarket to test the role of commitment and badges in reducing the carbon footprint of grocery shopping. In the experiment, some participants had the opportunity to voluntarily commit to a low carbon footprint basket before their online grocery shopping; the commitment was forced upon other participants. We also study the impact of an online badge as a soft reward for the achievement of a low carbon footprint basket. Participants from the general population shopped over two weeks, with the experimental stimuli only in week 2; and received their shopping baskets and any unspent budget. Results indicate that requesting a commitment prior to entering the store leads to a reduction in carbon footprint of 9–12%. When the commitment is voluntary, reductions are driven by consumers who accept the commitment. Commitments also reduced the consumption of fats and, for forced commitments, that of salt by 18%. Badges did not significantly impact consumer behaviour. Commitment mechanisms, either forced or voluntary, appear effective in motivating an environmental goal and search for low-carbon options, particularly in those accepting the commitment. Sustainable consumption, Healthy and sustainable diets, Commitment, Field experiment, Carbon footprint, Food consumption 1 2024 87 1 3 Environmental and Resource Economics 89 133 C54 C93 D12 D91 Q18 Q56 http://link.springer.com/10.1007/s10640-023-00814-1 text/html Abstract Luca A. Panzone luca.panzone@newcastle.ac.uk Newcastle University The Alan Turing Institute Natasha Auch n.auch2@newcastle.ac.uk Newcastle University Daniel John Zizzo d.zizzo@uq.edu.au University of Queensland
oai:RePEc:kap:enreec:v:87:y:2024:i:1:d:10.1007_s10640-023-00813-22024-01-18RePEc:kap:enreec
article Protecting Life and Lung: Protected Areas Affect Fine Particulate Matter and Respiratory Hospitalizations in the Brazilian Amazon Biome Abstract There is growing recognition of the connection between ecosystem conservation and human health. For example, protection of tropical forests can affect the spread of infectious diseases, water quality, and dietary diversity, while forest loss can have important consequences for respiratory health due to the use of fire for converting land to alternative uses in many countries. Studies demonstrating links between ecosystems and health often conclude with recommendations to expand policies that protect natural ecosystems. However, there is little empirical evidence on the extent to which conservation policies actually deliver health benefits when they are implemented in real contexts. We estimate the effects of protected areas (PAs), the dominant type of conservation policy, on hospitalizations for respiratory illness in the Brazilian Amazon biome. We find that doubling upwind PAs reduces PM2.5 by 10% and respiratory hospitalizations by 7% in the months of most active biomass burning. Brazil has an extensive network of PAs, but investments in management and enforcement have declined in recent years. Forest fires have increased dramatically over the same period. We estimate that the value of the health benefits exceed current average expenditures on PA management for the 1/3 of PAs with the largest local populations, although not for PAs in more remote locations. Our findings highlight how quantifying the contributions to the wellbeing of local populations can support conservation objectives, even if global environmental benefits are not a high priority for decision makers. Ecosystem services, Health, Tropical forests, Brazilian Amazon 1 2024 87 1 2 Environmental and Resource Economics 45 87 http://link.springer.com/10.1007/s10640-023-00813-2 text/html Abstract Derek Sheehan University of Montana University of Montana Katrina Mullan katrina.mullan@umontana.edu University of Montana Thales A. P. West Vrije Universiteit Amsterdam Erin O. Semmens University of Montana
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article The Recreational Value of the Baltic Sea Coast: A Spatially Explicit Site Choice Model Accounting for Environmental Conditions Abstract The coast plays a significant recreational role in the nine countries around the Baltic Sea. More than 70% of the population of these countries visit the coast, representing some 80 million recreational visits annually. Understanding the values associated with coastal recreation, and the potential welfare changes resulting from improvements in the state of environmental and infrastructure conditions of the Baltic Sea coast is important for marine environment management in the region. We estimate a spatially explicit travel cost model for Baltic coast recreation to assess the welfare of accessing individual sites, identify recreational hot spots and simulate the welfare changes resulting from improvements in environmental and infrastructure conditions. The total benefits associated with Baltic Sea coast-based recreation amount to 27.5 billion EUR per year with significant variation across sites. Improving water quality and infrastructure boost the recreational value by nearly 6.2 billion EUR, an increase of about a fifth of the existing recreational benefits. Recreational benefits, Site choice, Random utility model, Baltic Sea, Blue Flag 1 2024 87 1 4 Environmental and Resource Economics 135 166 L83 Q26 Q51 http://link.springer.com/10.1007/s10640-023-00816-z text/html Abstract Mikołaj Czajkowski mc@uw.edu.pl University of Warsaw Wiktor Budziński wbudzinski@wne.uw.edu.pl University of Warsaw Marianne Zandersen mz@envs.au.dk Aarhus University Wojciech Zawadzki wm.zawadzki@uw.edu.pl University of Warsaw Uzma Aslam u_saadia@yahoo.com Aarhus University Iqra University Islamabad Campus Ioannis Angelidis angelidisioannis@gmail.com Aarhus University Katarzyna Zagórska kzagorska@uw.edu.pl University of Warsaw
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article Voting Sustains Intergenerational Cooperation, Even When the Tipping Point Threshold is Ambiguous Abstract Sustaining future generations requires cooperation today. While individuals’ selfish interests threaten to undermine cooperation, social institutions can foster cooperation in intergenerational situations without ambiguity. However, in numerous settings, from climate change to the biodiversity crisis, there exists considerable ambiguity in the degree of cooperation required. Such ambiguity limits the extent to which people typically cooperate. We present the results of an intergenerational public goods game, which show that a democratic institution can promote cooperation, even in the face of ambiguity. While ambiguity in previous work has proved a challenge to cooperation (although we find sometimes only small and non-significant effects of ambiguity), voting is consistently able to maintain sustainable group-level outcomes in our study. Additional analyses demonstrate that this form of democracy has an effect over and above the impact on beliefs alone and over and above the structural effects of the voting institution. Our results provide evidence that social institutions, such as democracy, can buffer against selfishness and sustain cooperation to provide time-delayed benefits to the future. Intergenerational goods games, Voting, Climate change, Sustainability, Ambiguity, Tipping points, Threshold 1 2024 87 1 5 Environmental and Resource Economics 167 190 http://link.springer.com/10.1007/s10640-023-00817-y text/html Abstract Ben Balmford b.j.balmford@exeter.ac.uk University of Exeter Madeleine Marino maddie.j.marino@gmail.com Harvard University Oliver P. Hauser o.hauser@exeter.ac.uk University of Exeter
oai:RePEc:kap:enreec:v:72:y:2019:i:3:d:10.1007_s10640-018-0223-22019-10-20RePEc:kap:enreec
article Is Shale Gas a Good Bridge to Renewables? An Application to Europe Abstract This paper explores whether climate policy justifies developing more shale gas and addresses the question of a potential arbitrage between shale gas development and the transition to clean energy. We construct a Hotelling-like model where electricity may be produced by three perfectly substitutable sources: an abundant dirty resource (coal), a non-renewable less polluting resource (shale gas), and an abundant clean resource (solar). The resources differ by their carbon contents and their unit costs. Shale gas extraction’s technology (fracking) generates local damages. Fixed costs must be paid to develop shale gas and to deploy the clean resource on a large scale. Climate policy takes the form of a carbon budget. We show that, at the optimum, a more stringent climate policy does not always go together with an increase of the quantity of shale gas extracted, and that banning shale gas extraction most often leads to bring forward the development of the clean resource, but not always. We calibrate the model for Europe in order to determine whether shale gas should be extracted and in which amount, and to evaluate the effects of a moratorium on shale gas use. Shale gas, Global warming, Non-renewable resources, Energy transition 3 2019 72 3 6 Environmental and Resource Economics 721 762 H50 Q31 Q35 Q41 Q42 Q54 http://link.springer.com/10.1007/s10640-018-0223-2 text/html Abstract Fanny Henriet fanny.henriet@psemail.eu CNRS Katheline Schubert schubert@univ-paris1.fr University Paris 1
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article The Welfare Effects of Opening to Foreign Direct Investment in Polluting Sectors Abstract This article investigates how attracting foreign direct investment (FDI) in a polluting sector affects home-country welfare relative to a closed polluting sector scenario. A welfare-maximizing government sets environmental regulations while accounting for public infrastructure levels, environmental quality, and FDI in a polluting sector. We show that in a closed polluting sector, environmental regulations are increasing over infrastructure. With FDI, a similar relationship holds but the optimal environmental regulation is higher to account for the decrease in domestic producer surplus and increase in pollution damages. A critical infrastructure level exists where welfare under a closed polluting sector and welfare with polluting FDI are equal. Countries with underdeveloped infrastructure below the critical infrastructure level are better off deterring FDI entrance into the polluting sector. As infrastructure quality increases beyond the critical infrastructure level, welfare is higher with FDI than under a closed polluting sector because of an increase in consumer surplus from lower prices. Environmental regulations, Infrastructure, Foreign direct investment, Welfare, Heterogeneous firms 1 2019 74 9 9 Environmental and Resource Economics 243 269 F64 Q58 O44 http://link.springer.com/10.1007/s10640-018-00316-5 text/html Abstract Xin Zhao xz026@uark.edu University of Arkansas Gregmar I. Galinato ggalinato@wsu.edu Washington State University Tim A. Graciano tgracian@amazon.com Amazon
oai:RePEc:kap:enreec:v:73:y:2019:i:4:d:10.1007_s10640-018-0298-92019-10-20RePEc:kap:enreec
article Testing for Convergence in Carbon Dioxide Emissions Using a Bayesian Robust Structural Model Abstract We address international convergence in carbon dioxide emissions per capita and per value added derived from emission inventories based on production and consumption patterns. We propose a Bayesian structural model that accounts for heteroscedasticity and endogeneity between emissions and economic growth, and tests for the existence of group-specific convergence via shrinkage priors. We find evidence for country-specific conditional convergence in all emission inventories, implying a half-life of 2.7–3.1 years for production-based emissions and 3.6–4.7 years for consumption-based emissions. When testing for global convergence without allowing for individual-specific convergence paths, the half-life of $$\hbox {CO}_2$$CO2 per capita increases to 15–26 years, whereas emission intensities show a half-life of 44–45 years. Our results highlight the current incompatibility between emission targets and economic growth and the need for faster diffusion of green technologies. Moreover, there is no evidence for specific convergence dynamics in the European Union, the OECD, or the countries that are subject to binding emission constraints specified in the Kyoto Protocol. The institutional frameworks implemented in industrialized countries did not induce faster convergence among developed economies. $$\hbox {CO}_2$$ CO 2 emissions, Production-based inventories, Carbon footprint, Convergence test, Half-life 4 2019 73 8 13 Environmental and Resource Economics 1265 1286 F18 F64 O44 Q54 Q56 http://link.springer.com/10.1007/s10640-018-0298-9 text/html Abstract Octavio Fernández-Amador octavio.fernandez@wti.org University of Bern Doris A. Oberdabernig doris.oberdabernig@wti.org University of Bern Patrick Tomberger patrick.tomberger@wti.org University of Bern
oai:RePEc:kap:enreec:v:79:y:2021:i:3:d:10.1007_s10640-021-00572-y2021-07-09RePEc:kap:enreec
article Impact Evaluation of Alternative Irrigation Technology in Crete: Correcting for Selectivity Bias Abstract The interest in promoting food and water security through development projects has led to the need to evaluate the impact of these projects. This study evaluates the impact from transitioning to a modern irrigation technology. Deciding to adopt or not an alternative irrigation technology (sprinklers) is not necessarily a random determination. Therefore, selection bias can be present and this can lead to biased estimates. In this study, we apply methodological specifications to correct for self-selectivity biases. Then, we measure and compare the technical efficiency scores from adopters and non-adopters. The empirical application uses data covering 56 small-scale greenhouse farms in Crete (Greece) for the cropping years 2009-2013. The results reveal that the average technical efficiency for farmers who adopted sprinkler irrigation is lower than the group of non-adopters, when the presence of selectivity bias cannot be rejected. This implies that either the farmers need more time to incorporate the know-how of the newly acquired technology or they become less motivated after the adoption. Consequently, agricultural water saving technologies need to be promoted in combination with support to the farmers, so they can cope with the lower performance in the first years after adoption. Impact evaluation, Irrigation technology adoption, Sample selection, Stochastic frontier, Technical efficiency 3 2021 79 7 4 Environmental and Resource Economics 551 574 D24 Q12 Q15 Q16 Q25 http://link.springer.com/10.1007/s10640-021-00572-y text/html Abstract Maria Vrachioli maria.vrachioli@tum.de Technical University of Munich Spiro E. Stefanou sstefanou@ufl.edu United States Department of Agriculture Vangelis Tzouvelekas v.tzouvelekas@uoc.gr University of Crete
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article Correction to: Nitrogen Tax and Set‑Aside as Greenhouse Gas Abatement Policies Under Global Change Scenarios: A Case Study for Germany A correction to this paper has been published: https://doi.org/10.1007/s10640-021-00573-x 3 2021 79 7 6 Environmental and Resource Economics 625 625 http://link.springer.com/10.1007/s10640-021-00573-x text/html Abstract Martin Henseler Martin.henseler@thuenen.de Thünen Institute of Rural Studies Partnership for Economic Policy (PEP) Université du Havre Ruth Delzeit Kiel Institute for the World Economy Marcel Adenäuer OECD Sarah Baum Thünen Institute of Rural Studies Peter Kreins Thünen Institute of Rural Studies
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article Ecosystem Shifts: Implications for Groundwater Management Abstract Freshwater ecosystems provide a large number of benefits to society. However, extensive human activities threat the viability of these ecosystems, their habitats, and their dynamics and interactions. One of the main risks facing these systems is the overexploitation of groundwater resources that hinders the survival of several freshwater habitats. In this paper, we study optimal groundwater paths when considering freshwater ecosystems. We contribute to existing groundwater literature by including the possibility of regime shifts in freshwater ecosystems into a groundwater management problem. The health of the freshwater habitat, which depends on the groundwater level, presents a switch in its status that occurs when a critical water level (‘tipping point’) is reached. Our results highlight important differences in optimal extraction paths and optimal groundwater levels compared with traditional models. The outcomes suggest that optimal groundwater withdrawals are non-linear and depend on the critical threshold and the ecosystem’s health function. Our results show that the inclusion of regime shifts in water management calls for a reformulation of water policies to incorporate the structure of ecosystems and their interactions with the habitat. Aquatic ecosystems, Groundwater management, Non-linear functions, Ecosystems health, Shifts in ecosystems, Tipping point, Two-stage optimal control problem 3 2021 79 7 2 Environmental and Resource Economics 483 510 Q25 Q57 Q58 http://link.springer.com/10.1007/s10640-021-00569-7 text/html Abstract Encarna Esteban encarnae@unizar.es University of Zaragoza IA2 (Instituto Agroalimentario de Aragón, Universidad de Zaragoza-CITA) Elena Calvo IA2 (Instituto Agroalimentario de Aragón, Universidad de Zaragoza-CITA) University of Zaragoza Jose Albiac IA2 (Instituto Agroalimentario de Aragón, Universidad de Zaragoza-CITA) International Institute for Applied Systems Analysis - IASA
oai:RePEc:kap:enreec:v:79:y:2021:i:3:d:10.1007_s10640-021-00564-y2021-07-09RePEc:kap:enreec
article Designing Effective and Acceptable Road Pricing Schemes: Evidence from the Geneva Congestion Charge Abstract While instruments to price congestion exist since the 1970s, less than a dozen cities around the world have a cordon or zone pricing scheme. Geneva, Switzerland, may be soon joining them. This paper builds on a detailed review of the existing schemes to identify a set of plausible design options for the Geneva congestion charge. In turn, it analyzes their acceptability, leveraging a large survey of residents of both Geneva and the surrounding areas of Switzerland and France. Our original approach combines a discrete choice experiment with randomized informational treatments. We consider an extensive set of attributes, such as perimeter, price and price modulation, use of revenues, and exemption levels and beneficiaries. The informational treatments address potential biased beliefs concerning the charge’s expected effects on congestion and pollution. We find that public support depends crucially on the policy design. We identify an important demand for exemptions, which, albeit frequently used in the design of environmental taxation, is underexplored in the analysis of public support. This demand for exemptions is not motivated by efficiency reasons. It comes mostly by local residents, for local residents. Further, people show a marked preference for constant prices, even if efficiency would point to dynamic pricing based on external costs. Hence, we highlight a clear trade-off between efficiency and acceptability. However, we also show, causally, that this gap can in part be closed, with information provision. Analyzing heterogeneity, we show that preferences vary substantially with where people live and how they commute. Even so, we identify several designs that reach majority support. Acceptability, Congestion charge, Policy design, Public support, Road pricing 3 2021 79 7 1 Environmental and Resource Economics 417 482 D72 H23 Q53 Q58 R41 R48 http://link.springer.com/10.1007/s10640-021-00564-y text/html Abstract Andrea Baranzini University of Applied Sciences and Arts Western Switzerland, HES-SO Stefano Carattini Georgia State University CESifo London School of Economics and Political Science University of St. Gallen Linda Tesauro linda.tesauro@epfl.ch University of Applied Sciences and Arts Western Switzerland, HES-SO Ecole polytechnique fédérale de Lausanne (EPFL)
oai:RePEc:kap:enreec:v:79:y:2021:i:3:d:10.1007_s10640-021-00571-z2021-07-09RePEc:kap:enreec
article The Role of Food Web Interactions in Multispecies Fisheries Management: Bio-economic Analysis of Salmon, Herring and Grey Seal in the Northern Baltic Sea Abstract Multispecies bio-economic models are useful tools to give insights into ecosystem thinking and ecosystem-based management. This paper developed an age-structured multispecies bio-economic model that includes the food web relations of the grey seal, salmon, and herring, along with salmon and herring fisheries in the Baltic Sea. The results show that the increasing seal population influences salmon fisheries and stock, but the impacts on the harvest are stronger than on the stock if the targeted management policies are obeyed. If seal population growth and a low herring stock occur simultaneously, the salmon harvest could face a serious threat. In addition, scenarios of the multispecies management approach in this paper reveal a benefit that our model can evaluate the performance of different fisheries with identical or different management strategies simultaneously. The results show the most profitable scenario is that both fisheries pursuit aggregated profits and reveal a trade-off between herring fisheries and salmon fisheries. Our model indicates that the herring harvest level and the approaches to managing herring fisheries can influence the performance of salmon fisheries. The study also demonstrates a way to develop a multispecies bio-economic model that includes both migratory fish and mammalian predators. Bio-economic modeling, Dynamic optimization, Food web interaction, Grey seal (Halichoerus grypus), Herring (Clupea harengus), Multiobjective, Multispecies management, Salmon (Salmo salar) 3 2021 79 7 3 Environmental and Resource Economics 511 549 http://link.springer.com/10.1007/s10640-021-00571-z text/html Abstract Tin-Yu Lai tin-yu.lai@helsinki.fi University of Helsinki Helsinki Institute of Sustainability Science (HELSUS) Marine Research Centre, Finnish Environment Institute (SYKE) Marko Lindroos University of Helsinki Helsinki Institute of Sustainability Science (HELSUS) Lone Grønbæk University of Southern Denmark Atso Romakkaniemi Natural Resources Institute Finland (LUKE)
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article Guidance to Enhance the Validity and Credibility of Environmental Benefit Transfers Abstract Benefit transfer is the use of pre-existing empirical estimates from one or more settings where research has been conducted previously to predict measures of economic value or related information for other settings. These transfers offer a feasible means to provide information on economic values when time, funding and other constraints impede the use of original valuation studies. The methods used for applied benefit transfers vary widely, however, and it is not always clear why certain procedures were applied or whether alternatives might have led to more credible estimates. Motivated by the importance of benefit transfers for decision-making and the lack of consensus guidance for applied practice, this article provides recommendations for the conduct of valid and reliable transfers, based on the insight from the combined body of benefit transfer research. The primary objectives are to: (a) advance and inform benefit-transfer applications that inform decision making, (b) encourage consensus over key dimensions of best practice for these applications, and (c) focus future research on areas requiring further advances. In doing so, we acknowledge the healthy tension that can exist between best practice as led by the academic literature and practical constraints of real-world applications. Benefit–cost analysis, Benefit transfer, Best practice, Guidance, Non-market value, Valuation, Value transfer 3 2021 79 7 5 Environmental and Resource Economics 575 624 http://link.springer.com/10.1007/s10640-021-00574-w text/html Abstract Robert J. Johnston rjohnston@clarku.edu George Perkins Marsh Institute, Clark University Kevin J. Boyle kjboyle@vt.edu Virginia Tech Maria L. Loureiro maria.loureiro@usc.es University of Santiago de Compostela Ståle Navrud stale.navrud@nmbu.no Norwegian University of Life Sciences John Rolfe j.rolfe@cqu.edu.au School of Business and Law, CQUniversity
oai:RePEc:kap:enreec:v:68:y:2017:i:1:d:10.1007_s10640-017-0145-42021-06-02RePEc:kap:enreec
article The Structure of UK Outbound FDI and Environmental Regulation Abstract We study whether the pattern of outbound Foreign Direct Investment (FDI) is influenced by host countries’ environmental regulations. We employ a general empirical location model that captures interactions between industry attributes and host country characteristics in determining firm location. We use data on UK-based multinational activity in 64 countries and 23 industries over the period 2002–2006. Our results suggest a significant effect of environmental policy on the pattern of UK outbound FDI—a pollution haven effect. A one standard deviation increase in environmental laxity increases FDI (assets) in industries that are above-average pollution intensive by 28%. Pollution-haven, Competitiveness, Environmental-regulation, Industry-location, FDI 1 2017 68 9 4 Environmental and Resource Economics 65 96 http://link.springer.com/10.1007/s10640-017-0145-4 text/html Abstract Abay Mulatu abay.mulatu@coventry.ac.uk Coventry University
oai:RePEc:kap:enreec:v:68:y:2017:i:1:d:10.1007_s10640-017-0166-z2021-06-02RePEc:kap:enreec
article Few and Not So Far Between: A Meta-analysis of Climate Damage Estimates Abstract Given the vast uncertainty surrounding climate impacts, meta-analyses of global climate damage estimates are a key tool for determining the relationship between temperature and climate damages. Due to limited data availability, previous meta-analyses of global climate damages potentially suffered from multiple sources of coefficient and standard error bias: duplicate estimates, omitted variables, measurement error, overreliance on published estimates, dependent errors, and heteroskedasticity. To address and test for these biases, we expand on previous datasets to obtain sufficient degrees of freedom to make the necessary model adjustments, including dropping duplicate estimates and including methodological variables. Estimating the relationship between temperature and climate damages using weighted least squares with cluster-robust standard errors, we find strong evidence that duplicate and omitted variable biases flatten the relationship. However, the magnitude of the bias greatly depends on the treatment of speculative high-temperature (>4 $$^{\circ }$$ ∘ C) damage estimates. Replacing the DICE-2013R damage function with our preferred estimate of the temperature–damage relationship, we find a three- to four-fold increase in the 2015 SCC relative to DICE, depending on the treatment of productivity. When catastrophic impacts are also factored in, the SCC increases by four- to five-fold. Climate change, Damage function, Duplication bias, Meta-analysis, Social cost of carbon 1 2017 68 9 8 Environmental and Resource Economics 197 225 http://link.springer.com/10.1007/s10640-017-0166-z text/html Abstract Peter H. Howard HowardP@mercury.law.nyu.edu New York University School of Law Thomas Sterner thomas.sterner@economics.gu.se University of Gothenburg
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article Frontiers of Climate Change Economics Abstract The economics of climate change is an active field of research. The contributions to a Special Issue are put in context of the literature, and it is suggested that second-best issues such as carbon leakage and the Green Paradox need to be complemented with a political economy analysis of why certain instruments are politically infeasible and with intra- and intergenerational analyses of the impact of climate policy. A case is also made for more empirical work on the gradual and catastrophic damages of global warming. Climate change, Green paradox, Carbon leakage, Political economy, Distribution, Tipping points, Climate damage estimates 1 2017 68 9 1 Environmental and Resource Economics 1 14 Q51 Q52 Q54 Q58 http://link.springer.com/10.1007/s10640-017-0171-2 text/html Abstract Gerard Meijden g.c.vander.meijden@vu.nl Vrije Universiteit Amsterdam Tinbergen Institute Frederick Ploeg rick.vanderploeg@economics.ox.ac.uk Tinbergen Institute University of Oxford St. Petersburg State University CEPR CESifo Cees Withagen c.a.a.m.withagen@vu.nl Vrije Universiteit Amsterdam IPAG Business School Paris CESifo
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article Self-Enforcing Intergenerational Social Contracts for Pareto Improving Pollution Mitigation Abstract We consider, in an overlapping generations model with an environmental externality, a scheme of contracts between any two successive generations. Under each contract, agents of the young generation invest a share of their labor income in pollution mitigation in exchange for a transfer in the second period of their lives. The transfer is financed in a pay-as-you-go manner by the next young generation. Different from previous work we assume that the transfer is granted as a subsidy to capital income rather than lump sum. We show that the existence of a contract which is Pareto improving over the situation without contract for any two generations requires a sufficiently high level of income. In a steady state with social contracts in each period, the pollution stock is lower compared to a steady state without contracts. Analytical and numerical analysis of the dynamics under Nash bargaining suggests that under reasonable conditions, also steady state income and welfare are higher. Delaying the implementation of a social contract for too long or imposing a contract with too low mitigation can be costly: Net income may inevitably fall below the threshold in finite time so that Pareto improving mitigation is no longer possible and the economy converges to a steady state with high pollution stock and low income and welfare. In the second part of the paper, we study a game theoretic setup, taking into account that credibly committing to a contract might not be possible. We show that with transfers granted as a subsidy to capital income, there exist mitigation transfer schemes which are both Pareto improving and give no generation an incentive to deviate from any of its contracts even in a dynamically efficient economy. Social contracts coexist with private savings. OLG models, Pollution, Mitigation, Social contract, Pareto improvement, Self-enforcing 1 2017 68 9 6 Environmental and Resource Economics 129 173 D62 D64 E21 Q54 http://link.springer.com/10.1007/s10640-017-0155-2 text/html Abstract Nguyen Thang Dao daonguyen@mcc-berlin.net Mercator Research Institute on Global Commons and Climate Change Kerstin Burghaus burghaus@mcc-berlin.net Mercator Research Institute on Global Commons and Climate Change Ottmar Edenhofer edenhofer@pik-potsdam.de Mercator Research Institute on Global Commons and Climate Change Potsdam Institute for Climate Impact Research Technical University of Berlin
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article Simultaneous Supplies of Dirty Energy and Capacity Constrained Clean Energy: Is There a Green Paradox? Abstract The effects of two popular second-best clean energy policies are analysed using an extended Hotelling-type resource extraction framework. This model features, first, heterogenous energy sources and, second, a capacity-constrained backstop technology. This setup allows for capturing the following two empirical observations. First, different types of energy sources are used simultaneously despite different production cost. Second, experiences from various European countries show that a further expansion of the use of climate friendly technologies faces substantial technological as well as political constraints. We use this framework to analyse if under two policy scenarios a so-called “Green Paradox” occurs. A subsidy for the clean energy as well as an expansion of the capacity of the clean energy are considered. The analysis shows that under plausible parameter values both policy measures lead to a weak Green Paradox; however a strong Green Paradox is only found for the capacity expansion scenario. In addition, the subsidy is found to be welfare enhancing while the capacity increase is welfare enhancing only if the cost of adding the capacity is sufficiently small.We also show the effects of the policies crucially depend on the initial capacity and that under certain scenarios even an “extreme” Green Paradox is found. Capacity constraints, Green Paradox, Climate change, Simultaneous resource use, Cost reversal 1 2017 68 9 3 Environmental and Resource Economics 47 64 Q38 Q54 H23 http://link.springer.com/10.1007/s10640-017-0151-6 text/html Abstract Marc Gronwald mgronwald@abdn.ac.uk University of Aberdeen Business School Ngo Long ngo.long@mcgill.ca McGill University University of Tasmania Luise Roepke roepke@ifo.de ifo Institute for Economic Research
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article Green Taxes in a Post-Paris World: Are Millions of Nays Inevitable? Abstract Turning the Paris Agreement’s greenhouse gas emissions pledges into domestic policies is the next challenge for governments. We address the question of the acceptability of cost-effective climate policy in a real-voting setting. First, we analyze voting behavior in a large ballot on energy taxes, rejected in Switzerland in 2015 by more than 2 million people. Energy taxes were aimed at completely replacing the current value-added tax. We examine the determinants of voting and find that distributional and competitiveness concerns reduced the acceptability of energy taxes, along with the perception of ineffectiveness. Most people would have preferred tax revenues to be allocated for environmental purposes. Second, at the same time of the ballot, we tested the acceptability of alternative designs of a carbon tax with a choice experiment survey on a representative sample of the Swiss population. Survey respondents are informed about environmental, distributional and competitiveness effects of each carbon tax design. These impacts are estimated with a computable general equilibrium model. This original setting generates a series of novel results. Providing information on the expected environmental effectiveness of carbon taxes reduces the demand for environmental earmarking. Making distributional effects salient generates an important demand for progressive designs, e.g. social cushioning or recycling via lump-sum transfers. The case of lump-sum recycling is particularly striking: it is sufficient to show its desirable distributional properties to make it one of the most preferred designs, which corresponds to a completely novel result in the literature. We show that providing detailed information on the functioning of environmental taxes may contribute to close both the gap between acceptability ex ante and ex post and the gap between economists’ prescriptions and the preferences of the general public. Carbon taxes, Acceptability, Political economy, Ballot data, Choice experiment D72, D78, H23, Q54 1 2017 68 9 5 Environmental and Resource Economics 97 128 http://link.springer.com/10.1007/s10640-017-0133-8 text/html Abstract Stefano Carattini s.carattini@lse.ac.uk Yale University London School of Economics and Political Science Andrea Baranzini HES-SO/University of Applied Sciences Western Switzerland Philippe Thalmann Swiss Federal Institute of Technology Lausanne - Ecole Polytechnique Fédérale de Lausanne (EPFL) Frédéric Varone University of Geneva Frank Vöhringer Swiss Federal Institute of Technology Lausanne - Ecole Polytechnique Fédérale de Lausanne (EPFL)
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article Fuel Efficiency Improvements: Feedback Mechanisms and Distributional Effects in the Oil Market Abstract We study the interactions between fuel efficiency improvements in the transport sector and the oil market, where the efficiency improvements are policy-induced in certain regions of the world. We are especially interested in feedback mechanisms of fuel efficiency such as the rebound effect, carbon leakage and the “green paradox”, but also the distributional effects for oil producers. An intertemporal numerical model of the international oil market is introduced, where OPEC-Core producers have market power. We find that the rebound effect has a noticeable effect on the transport sector, with the magnitude depending on the oil demand elasticity. In the benchmark simulations, we calculate that almost half of the energy savings may be lost to a direct rebound effect and an additional 10% to oil price adjustments. In addition, there is substantial intersectoral leakage to other sectors through lower oil prices in the regions that introduce the policy. There is a small green paradox effect in the sense that oil consumption increases initially when the fuel efficiency measures are gradually implemented. Finally, international carbon leakage will be significant if policies are not implemented in all regions; we estimate leakage rates of 35% or higher when only major consuming regions implement fuel economy policies. Non-OPEC producers will to a larger degree than OPEC producers cut back on its oil supply as a response to fuel efficiency policies due to high production costs. Fuel efficiency, Transport, Oil market, Market power, Distributional effects, Feedback mechanisms 1 2017 68 9 2 Environmental and Resource Economics 15 45 D42 Q54 R48 http://link.springer.com/10.1007/s10640-017-0134-7 text/html Abstract Finn Roar Aune fau@ssb.no Statistics Norway Ann Christin Bøeng abg@ssb.no Statistics Norway Statistics Norway Snorre Kverndokk snorre.kverndokk@frisch.uio.no Ragnar Frisch Centre for Economic Research Lars Lindholt lli@ssb.no Statistics Norway Knut Einar Rosendahl knut.einar.rosendahl@nmbu.no Norwegian University of Life Sciences
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article Coping with Multiple Catastrophic Threats Abstract We study intertemporal policies for dealing with multiple catastrophic threats with endogenous hazards, allowing, inter alia, for gradual mitigation efforts that accumulate to reduce occurrence risks. The long-run properties of the optimal policies are characterized in terms of the key parameters (damage, hazard sensitivity and natural degradation rate) associated with each type of catastrophic threat. Effects of background threats on the optimal response to a potential catastrophe are illustrated numerically. Multiple catastrophes, Intertemporal policy, Endogenous hazards, Long-run properties 1 2017 68 9 7 Environmental and Resource Economics 175 196 C61 Q54 http://link.springer.com/10.1007/s10640-017-0144-5 text/html Abstract Yacov Tsur yacov.tsur@mail.huji.ac.il The Hebrew University of Jerusalem Amos Zemel amos@bgu.ac.il Ben Gurion University of the Negev
oai:RePEc:kap:enreec:v::y::i::d:10.1007_s10640-020-00425-02020-05-09RePEc:kap:enreec
article Nitrogen Tax and Set-Aside as Greenhouse Gas Abatement Policies Under Global Change Scenarios: A Case Study for Germany Abstract The ambitious climate policy objectives of the COP21 agreement require the design and the implementation of effective and efficient policy instruments. The effectiveness and efficiency of agricultural abatement options depend on regional climate and natural conditions, changes in the global economy, global agricultural markets and regional agricultural production. Thus, the assessment of abatement options requires consideration of the global scale, the market scale and the regional producer scale. We investigate two abatement options discussed controversially in literature. Both have been partially applied to reduce environmental pollution from agriculture: a tax on nitrogen and the obligatory set-aside of agricultural land. Our study provides an assessment of the ecological effectiveness and the economic efficiency of both abatement options under different global scenarios. In our policy analysis we combine three applied policy simulation models to develop an integrated economic model framework. This model framework considers the global, the national and the regional scale and consists of the global general equilibrium model DART-BIO, the partial-equilibrium model CAPRI and the regional supply model RAUMIS. In the different global scenarios, the results show that both abatement options create relatively high marginal abatement costs and that the maximally reached abated greenhouse gas emissions represent only 15% of the quantity required to fulfill the policy targets. Compared to the obligatory set-aside option, the nitrogen tax is in both scenarios the more efficient policy. With respect to impacts on production and environment, a nitrogen tax is less forecastable than the obligatory set-aside option. Our study illustrates the relevance of considering global economic and market change in the assessment of producer-targeting environmental policies. Greenhouse gas abatement, Environmental policies, Agriculture, Global scenarios, Integrated modelling Environmental and Resource Economics 1 31 http://link.springer.com/10.1007/s10640-020-00425-0 text/html Abstract Martin Henseler martin.henseler@thuenen.de Thünen Institute of Rural Studies Partnership for Economic Policy (PEP) Université du Havre Ruth Delzeit Kiel Institute for the World Economy Marcel Adenäuer OECD Sarah Baum Thünen Institute of Rural Studies Peter Kreins Thünen Institute of Rural Studies
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article Economic Impacts of Multiple Agro-Environmental Policies on New Zealand Land Use Abstract This paper investigates the implications of policy on farm income, land use, and the environment when New Zealand landowners face multiple environmental constraints. It also looks at the interaction between climate and nutrient reduction policy and the extent to which one policy can be used to meet the other’s objectives. We use a non-linear, partial equilibrium mathematical programming model of New Zealand land use to assess the economic impacts of climate and water policies at the New Zealand territorial authority level. The spatially explicit agro-environmental economic model estimates changes in land use, agricultural output, land management, and environmental impacts. The policies investigated include a range of carbon prices on land-based emissions ($0–30/tCO $$_{2\mathrm{e}}$$ 2 e ) as well a range of prices on nitrogen leaching from diffuse sources ($0–30/kgN). We estimate that implementing stand-alone greenhouse gas and nutrient emissions reduction policies for the agricultural and forestry sectors will create environmental benefits outside the scope of the policy. However, not all environmental outputs improve, and net farm revenue declines by between 0 and 11%. Simultaneously implementing the two policies results in the desired goals of reductions in nitrogen and greenhouse gas emissions with a marginal economic burden on landowners (i.e. 1–2% additional loss in farm profit relative to a stand-alone policy). Agriculture and forestry modelling, Environmental policy, Climate change, Water quality, Greenhouse gas emissions, Nutrient leaching 4 2018 69 4 6 Environmental and Resource Economics 763 785 Q15 Q52 Q53 http://link.springer.com/10.1007/s10640-016-0103-6 text/html Abstract Adam Daigneault adam.daigneault@maine.edu University of Maine School of Forest Resources Suzie Greenhalgh greenhalghs@landcareresearch.co.nz Landcare Research New Zealand Oshadhi Samarasinghe samarasingheo@landcareresearch.co.nz Landcare Research New Zealand
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article How Property Markets Determine Welfare Outcomes: An Equilibrium Sorting Model Analysis of Local Environmental Interventions Abstract This paper examines the pivotal role played by property markets in determining the magnitude and distribution of welfare changes resulting from localised environmental change. We address that issue using an equilibrium sorting model (ESM) calibrated, by way of example, to the circumstances of a road infrastructure project in the English town of Polegate. Previous ESM research has tended to assume that all households rent property from a fixed property stock. The narrative that arises from those models concerns environmental gentrification, wherein access to environmentally improved locations is appropriated by the relatively wealthy through their ability to out-compete the less wealthy in the rental property market. Our research shows that to be only part of a much more complex story. We develop a model that extends the sophistication with which ESMs replicate property market dynamics, allowing for households to choose whether to rent or purchase their home and introducing greater realism into housing supply responses to changing market conditions. Our research shows that property markets redistribute welfare gains across the population in complex ways in which tenure choice and housing supply constraints play central roles. Equilibrium sorting models, Property market, Welfare analysis, Tenure choice, Distribution 4 2018 69 4 5 Environmental and Resource Economics 733 761 http://link.springer.com/10.1007/s10640-016-0101-8 text/html Abstract Amy Binner a.r.binner@exeter.ac.uk University of Exeter Brett Day brett.day@exeter.ac.uk University of Exeter
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article Seeking External Evidence to Assess Benefit Transfers for Environmental Policy Abstract The cost and time required to produce original benefit estimates makes benefit transfers a highly valuable component of the process of assessing the benefits and costs of environmental improvements. Because of the great variety of benefit estimates, conducted at different times with different data sources and different techniques, there is concerted effort to understand the validity of transfers. The research in this paper approaches the validity issue of benefit transfers by asking whether there is indirect evidence of the benefits. The premise of the paper is that policies that give significant benefits should induce expected and unexpected behavioral changes. We look for evidence of potential indirect evidence by by estimating the effect of differences air pollutants on activities such as outdoor recreation and work, as found in the American Time Use Survey. Environmental benefits, Benefit transfers, Validity tests, Time use, Air pollutants, American Time Use Survey 3 2018 69 3 6 Environmental and Resource Economics 555 573 http://link.springer.com/10.1007/s10640-017-0212-x text/html Abstract Kenneth E. McConnell tmcconn@umd.edu University of Maryland Juha V. Siikamäki juha.siikamaki@iucn.org International Union for Conservation of Nature
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article Benefit-Transfer and Spatial Equilibrium Abstract Compelling empirical evidence suggests that people move in response changes in pollution and that firms move in response to regulation. We investigate the problem of benefit estimation and transfer in the context of a simple model where firms and people can move in response to regulation and pollution. Including these margins of adjustment changes the problem of benefit-transfer. It requires the evaluation of policies that affect more than one region at a time. This suggests an important role for evaluation strategies based on easily observable indicators of local welfare like total population, real income net of real estate, or the use of elementary standardized models of spatial equilibrium. Benefit-transfer, Clean Air Act 3 2018 69 3 7 Environmental and Resource Economics 575 589 Q51 http://link.springer.com/10.1007/s10640-017-0213-9 text/html Abstract Matthew A. Turner matthew_turner@brown.edu Brown University NBER University of Toronto International Growth Center PERC
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article Understanding Error Structures and Exploiting Panel Data in Meta-analytic Benefit Transfers Abstract A regression meta-analysis is a statistical summary of results from a set of empirical studies. While, a meta-analysis is typically used to drawn inferences regarding the collective insights from an empirical literature, a regression meta-analysis can also be used to predict outcomes as a substitute for the conduct of a new study. Within the nonmarket-valuation literature benefit transfers are a special case of prediction where value estimates collected for one purpose are used as a basis for predicting value for unstudied applications. Balancing against the prediction opportunities provided by a regression meta-analysis is the potential prediction error. This paper considers some of these issues in the estimation of a regression meta-analysis to support prediction of nonmarket values for applications where an original study does not exist. We do not purport to address all elements of the error structure and prediction issues, but to present a more coherent focus to enhance future research on the validity and reliability of benefit-function transfers, and ultimately assist in enhancing the credibility of benefit transfers to support policy analyses. Meta-analysis, Meta-regression, Benefit transfer, Prediction, Error stuctures 3 2018 69 3 9 Environmental and Resource Economics 609 635 http://link.springer.com/10.1007/s10640-017-0211-y text/html Abstract Kevin J. Boyle kjboyle@vt.edu Virginia Tech Jeffrey M. Wooldridge wooldri1@msu.edu Michigan State University
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article How are Scope and Adding up Relevant for Benefits Transfer? Abstract In this paper, we explore ways in which the theoretical constructs of scope and adding up can inform and improve the practice of benefit transfer. Specifically, we examine how the stated preference literature on scope and adding up can inform three critical steps in benefits transfer: study site selection, including studies to select for use in a meta-regression; calibrating benefit functions; and assessing transfer validity. Nonmarket valuation, Benefits transfer, Benefit-cost analysis 3 2018 69 3 3 Environmental and Resource Economics 483 502 http://link.springer.com/10.1007/s10640-017-0208-6 text/html Abstract Catherine L. Kling ckling@iastate.edu Iowa State University Daniel J. Phaneuf dphaneuf@wisc.edu University of Wisconsin-Madison
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article Forest Value and Optimal Rotations in Continuous Cover Forestry Abstract The Faustmann forest rotation model is a celebrated contribution in economics. The model provides a forest value expression and allows a solution to the optimal rotation problem valid for perpetual rotations of even-aged forest stands. However, continuous forest cover forest management systems imply uneven-aged dynamics, and while a number of numerical studies have analysed specific continuous cover forest ecosystems in search of optimal management regimes, no one has tried to capture key dynamics of continuous cover forestry in simple mathematical models. In this paper we develop a simple, but rigorous mathematical model of the continuous cover forest, which strictly focuses on the area use dynamics that such an uneven-aged forest must have in equilibrium. This implies explicitly accounting for area reallocation and for weighting the productivity of each age class by the area occupied. We present results for unrestricted as well as area-restricted versions of the models. We find that land values are unambiguously higher in the continuous cover forest models compared with the even-aged models. Under area restrictions, the optimal rotation age in a continuous cover forest model is unambiguously lower than the corresponding area restricted Faustmann solution, while the result for the area unrestricted model is ambiguous. Capital budgeting, Faustmann rotation model, Uneven-aged forest management 4 2018 69 4 4 Environmental and Resource Economics 713 732 Q23 http://link.springer.com/10.1007/s10640-016-0098-z text/html Abstract Jette Bredahl Jacobsen jbj@ifro.ku.dk University of Copenhagen University of Copenhagen Frank Jensen fje@ifro.ku.dk University of Copenhagen Bo Jellesmark Thorsen bjt@ifro.ku.dk University of Copenhagen University of Copenhagen
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article Tax Competition in Vertically Differentiated Markets with Environmentally Conscious Consumers Abstract This paper analyses the effects of tax competition on environmental product quality, pollution and welfare in a two-country, vertically differentiated, international duopoly, in which consumers are environmentally conscious. The firm in each country chooses first the environmental quality of its product (which reflects the emissions generated in the production process) and then the price. In equilibrium one country will be more polluted than the other because firms choose different levels of environmental quality of their products. We find that a country’s optimal commodity tax is higher if the domestic firm is the more polluting supplier. Furthermore, non-cooperative commodity tax rates are inefficiently high in equilibrium. This is because, in this framework with environmentally aware consumers, commodity taxes affect the choice of firms regarding their emissions. Therefore, a domestic tax reduction not only raises the profits of the foreign firm but also lowers its emission levels, resulting in higher welfare for the other country. We also analyse the optimal cooperative and non-cooperative commodity and emission taxes with border tax adjustments. With these two policy instruments available, commodity taxes are higher. Commodity tax, Emission tax with border tax adjustments, Environmental product quality, Vertically differentiated market 4 2018 69 4 3 Environmental and Resource Economics 693 711 http://link.springer.com/10.1007/s10640-016-0097-0 text/html Abstract Ourania Karakosta okarakosta@cc.uoi.gr University of Ioannina
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article Benefits Transfer: Current Practice and Prospects Abstract This paper introduces a special issue devoted to the benefits transfer methods used as part of benefit costs analysis for policy analysis. Benefits transfer methods, as they are applied for environmental policy analyses, use economic concepts together with existing empirical estimates to predict the incremental benefits from a change in some feature of an environmental resource. After giving two examples of the decisions that analysts confront in performing these analyses, I discuss the interconnections between the papers in this issue and the research challenges that emerged from discussions of them. Benefit cost analysis, Regulatory impact analysis, Benefit transfer 3 2018 69 3 1 Environmental and Resource Economics 449 466 http://link.springer.com/10.1007/s10640-017-0206-8 text/html Abstract V. Kerry Smith kerry.smith@cavecreekinstitute.com Arizona State University
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article Renewable Resource Use and Nonseparable Amenity Benefits Abstract We incorporate amenity benefits into an overlapping generations model with a renewable resource as a factor of production, source of amenity benefits and store of value. Unlike the conventional renewable resource problems studied under the assumption of additive consumption and amenity benefits, we let amenity benefits affect the utility of consumers in a nonseparable fashion. We examine the role that weights given to consumption and amenities have for harvesting and the resource stock. We characterize dynamics and stability of steady state equilibria with a logistic resource growth function. We demonstrate in parametric and numerical models that the weights given to consumption and amenities in the utility function matter substantially for the steady state equilibrium stock and its stability and dynamics. Both conventional saddle point equilibria and indeterminacy with infinite number of equilibria and saddle-node bifurcation is possible depending on the weights given to consumption and amenities. In addition, we show that for each inefficient equilibrium stock, there is a unique subsidy rate that can move the economy from an inefficient equilibrium to an efficient one. The presence of indeterminacy provides a challenge to resource policies, because the system becomes unpredictable. Therefore, expectations and market psychology may play an important role in resource utilization and provision of amenities. Overlapping generations, Renewable resources, Nonseparable preferences, Indeterminacy 4 2018 69 4 1 Environmental and Resource Economics 637 659 D90 Q20 C62 http://link.springer.com/10.1007/s10640-016-0095-2 text/html Abstract Gregory Amacher gamacher@vt.edu Virginia Polytechnic Institute and State University Markku Ollikainen markku.ollikainen@helsinki.fi University of Helsinki Mikko Puhakka Mikko.Puhakka@oulu.fi University of Oulu
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article Does a Clean Development Mechanism Facilitate International Environmental Agreements? Abstract When politicians negotiate in international climate conventions they may suffer from incomplete information for each other’s preferences for reaching an agreement. As is known, this may cause failure to reach an efficient cooperative agreement. We study the role of cross border abatement provisions in the likelihood of such failure. For instance, the clean development mechanism was introduced in the context of the Kyoto Protocol to allow countries to make efficiency-enhancing use of cross-country low-cost mitigation opportunities. We use a simple bargaining framework to uncover why this mechanism may reduce the likelihood of reaching an efficient cooperative climate agreement. Clean development mechanism, International climate agreements, Bargaining, Incomplete information 4 2018 69 4 9 Environmental and Resource Economics 837 851 Q54 Q58 F53 H41 http://link.springer.com/10.1007/s10640-016-0107-2 text/html Abstract Kai A. Konrad Max Planck Institute for Tax Law and Public Finance Marcel Thum marcel.thum@tu-dresden.de TU Dresden
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article Windfall Profits Under Pollution Permits and Output-Based Allocation Abstract This paper analyzes the implementation of pollution permits. It focuses on the distributional impacts linked with the stringency of output-based allocation when two sectors are covered by the market for permits and the total cap is held constant. A new type of profit increase in sectors that are not exposed to international competition, when energy-intensive trade-exposed (EITE) sectors are granted output-based allocations, is demonstrated theoretically. The paper also illustrates a profit increase in the electricity sector in a possible fourth phase of the European Union Emission Trading Scheme, in which output-based allocation will be granted to EITE sectors, compared with the case in which all permits are auctioned. Tradable permits, Oligopoly markets, Output-based allocation, European Union Emission Trading Scheme (EU ETS) 4 2018 69 4 2 Environmental and Resource Economics 661 691 F18 H2 Q5 http://link.springer.com/10.1007/s10640-016-0096-1 text/html Abstract Jean-Philippe Nicolaï jnicolai@ethz.ch ETH Zurich Jorge Zamorano jorge.zamorano-ford1@mailx.univ-paris1.fr jorge.zamorano.f@usach.cl Université Paris I Panthéon Sorbonne Universidad de Santiago de Chile
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article Can Understanding Spatial Equilibria Enhance Benefit Transfers for Environmental Policy Evaluation? Abstract A conceptual model of consumer sorting in markets for housing, labor and health care is outlined and used to make three points about how benefit transfers are used for environmental policy evaluation. First, the standard approach to assessing benefits of air quality improvements by transferring the value of a statistical life from labor market studies embeds several untested (but testable) assumptions. Second, if the cost of an environmental policy exceeds its capitalized effect on housing prices, then the capitalization effect is an insufficient statistic for determining whether benefits exceed costs. Third, there are several ways in which equilibrium sorting models may be usefully extended to assess distributional welfare effects of environmental policies. 3 2018 69 3 8 Environmental and Resource Economics 591 608 http://link.springer.com/10.1007/s10640-017-0214-8 text/html Abstract Nicolai V. Kuminoff kuminoff@asu.edu Arizona State University National Bureau of Economic Research
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article Using structural restrictions to achieve theoretical consistency in benefit transfers Abstract Analysts often extrapolate estimates of the value of environmental improvements reported in prior studies to evaluate new policy proposals, a practice sometimes referred to as “benefit transfer.” Benefit transfer functions are frequently specified based on statistical considerations alone. However, such a purely statistical approach can lead to willingness-to-pay functions that fail to satisfy some aspects of theoretical consistency that may be especially important for policy evaluations. In this paper, we examine several previous meta-analyses of nonmarket valuation studies in light of the adding-up condition, which is one important aspect of theoretical validity. We then use meta-regression to estimate a new willingness-to-pay function for surface water quality improvements intended to be used for benefit transfers. We estimate the meta-regression model using summary results from 51 previously published stated preference studies. An important feature of our approach is that we develop the meta-regression estimating equation to ensure that the resulting benefit transfer function will necessarily comply with the adding-up condition. This is achieved by first specifying a marginal willingness-to-pay function and then deriving an expression for total willingness-to-pay. This leads to a non-linear estimating equation, so we estimate the parameters of the model using non-linear least squares. We discuss the advantages and disadvantages of our approach relative to other structural approaches, and we compare our empirical results to a more traditional nonstructural meta-regression model. Finally, we examine the quantitative importance of imposing the adding-up condition in our case study by performing some illustrative calculations of willingness-to-pay for hypothetical water quality improvements using both structural and non-structural models. Benefit transfer, Meta-analysis, Water quality, Non-market valuation 3 2018 69 3 5 Environmental and Resource Economics 529 553 http://link.springer.com/10.1007/s10640-017-0209-5 text/html Abstract Stephen C. Newbold newbold.steve@epa.gov U.S. EPA, National Center for Environmental Economics Patrick J. Walsh walshp@landcareresearch.co.nz Landcare Research D. Matthew Massey massey.matt@epa.gov U.S. EPA, National Center for Environmental Economics Julie Hewitt hewitt.julie@epa.gov U.S. EPA, Office of Water
oai:RePEc:kap:enreec:v:69:y:2018:i:3:d:10.1007_s10640-017-0207-72018-03-28RePEc:kap:enreec
article Benefit Transfer Challenges: Perspectives from U.S. Practitioners Benefit transfer, Water quality, Meta-analysis 3 2018 69 3 2 Environmental and Resource Economics 467 481 http://link.springer.com/10.1007/s10640-017-0207-7 text/html Abstract Stephen Newbold newbold.steve@epa.gov U.S. EPA, National Center for Environmental Economics R. David Simpson U.S. EPA, National Center for Environmental Economics D. Matthew Massey U.S. EPA, National Center for Environmental Economics Matthew T. Heberling U.S. EPA, Office of Research and Development William Wheeler wheeler.william@epa.gov U.S. EPA, National Center for Environmental Economics Joel Corona U.S. EPA, Office of Water Julie Hewitt U.S. EPA, Office of Water
oai:RePEc:kap:enreec:v:69:y:2018:i:4:d:10.1007_s10640-016-0106-32018-03-28RePEc:kap:enreec
article Optimal Management Under Institutional Constraints: Determining a Total Allowable Catch for Different Fleet Segments in the Northeast Arctic Cod Fishery Abstract Many real world fisheries have an individual vessel quota system with restrictions on transferability of quota or entrance of new vessels into the fishery. While the standard economic reasoning is that these institutional constraints lead to welfare losses, the size of those losses and optimal second-best policies are usually unknown. We develop a dynamic bioeconomic model, in which a scientific body provides an optimal TAC given restrictions on (i) transferability between vessel segments and (ii) entrance of new vessels. Further, we also quantify welfare losses arising from not maximizing economic welfare, but physical yield—which is actually the case in many fisheries. We apply the model to the Northeast Arctic cod fishery, and estimate not only the cost and harvesting functions of the various vessel types, but also the parameters of the biological model as well as those of the demand function. This allows us to determine optimal second-best policies and quantify corresponding welfare effects for our case study fishery. Group quota, Tradable permits, Fleet segments, ITQs, Dynamic optimization, Second-best policy 4 2018 69 4 8 Environmental and Resource Economics 811 835 http://link.springer.com/10.1007/s10640-016-0106-3 text/html Abstract Andries Richter andries.richter@wur.nl University of Oslo Wageningen University Anne Maria Eikeset University of Oslo Daan Soest Tilburg University Florian Klaus Diekert University of Oslo University of Heidelberg Nils Chr. Stenseth University of Oslo
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article Climate Change and Adaptation: The Case of Nigerian Agriculture Abstract The present research offers an economic assessment of climate change impacts on the four major crop families characterizing Nigerian agriculture. The evaluation is performed by shocking land productivity in a computable general equilibrium model tailored to replicate Nigerian economic development up to 2050. The detail of land uses in the model has been increased by differentiating land types per agro-ecological zones. Uncertainty about future climate is captured, using, as inputs, yield changes computed by a crop model under ten general circulation models runs. Climate change turns out to be negative for Nigeria in the medium term, with production losses and increase in crop prices, higher food dependency on foreign imports, and GDP losses in all the simulations after 2025. In a second part of the paper, a cost effectiveness analysis of adaptation in Nigerian agriculture is conducted. The adaptation practices considered are a mix of cheaper “soft measures” and more costly “hard” irrigation expansion. The main result is that the cost effectiveness of the whole package depends crucially on the possibility of implementing adaptation by exploiting low-cost opportunities which show a benefit-cost ratio larger than one in all the climate regimes. Adaptation, Agriculture, CGE modelling, Climate change, Impact assessment 4 2018 69 4 7 Environmental and Resource Economics 787 810 C68 Q51 Q54 Q15 http://link.springer.com/10.1007/s10640-016-0105-4 text/html Abstract Francesco Bosello CMCC (Centro Euro-Mediterraneo sui Cambiamenti Climatici) FEEM (Fondazione Eni Enrico Mattei) University of Milan Lorenza Campagnolo lorenza.campagnolo@feem.it CMCC (Centro Euro-Mediterraneo sui Cambiamenti Climatici) FEEM (Fondazione Eni Enrico Mattei) Raffaello Cervigni World Bank Fabio Eboli CMCC (Centro Euro-Mediterraneo sui Cambiamenti Climatici) FEEM (Fondazione Eni Enrico Mattei)
oai:RePEc:kap:enreec:v:69:y:2018:i:3:d:10.1007_s10640-018-0229-92018-03-28RePEc:kap:enreec
article A Nonparametric Revealed Preference Approach to Measuring the Value of Environmental Quality Abstract We develop an approach to valuing non-market goods using nonparametric revealed preference analysis. We show how nonparametric methods can also be used to bound the welfare effects of changes in the provision of a non-market good. Our main context is one in which the non-market good affects the marginal utility of consuming a related market good. This can also be framed as a shift in the taste for, or quality of, the market good. A systematic approach for incorporating quality/taste variation into a revealed preference framework for heterogeneous consumers is developed. This enables the recovery of the minimal variation in quality required to rationalise observed choices of related market goods. The variation in quality appears as a adjustment to the price for related market goods which then allows a revealed preference approach to bounding compensation measures of welfare effects to be applied. Revealed preference, Bounds, Public good valuation, Inequality restrictions, Semiparametric regression, Changing tastes 3 2018 69 3 4 Environmental and Resource Economics 503 527 http://link.springer.com/10.1007/s10640-018-0229-9 text/html Abstract Laura Blow l.blow@surrey.ac.uk Surrey University IFS Richard Blundell r.blundell@ucl.ac.uk IFS UCL
oai:RePEc:kap:enreec:v:80:y:2021:i:1:d:10.1007_s10640-021-00577-72021-08-22RePEc:kap:enreec
article Scope Elasticity of Willingness to pay in Discrete Choice Experiments Abstract Sensitivity to scope in nonmarket valuation refers to the property that people are willing to pay more for a higher quality or quantity of a nonmarket public good. Establishing significant scope sensitivity has been an important check of validity and a point of contention for decades in stated preference research, primarily in contingent valuation. Recently, researchers have begun to differentiate between statistical and economic significance. This paper contributes to this line of research by studying the significance of scope effects in discrete choice experiments (DCEs) using the scope elasticity of willingness to pay concept. We first formalize scope elasticity in a DCE context and relate it to economic significance. Next, we review a selection of DCE studies from the environmental valuation literature and derive their implied scope elasticity estimates. We find that scope sensitivity analysis as validity diagnostics is uncommon in the DCE literature and many studies assume unitary elastic scope sensitivity by employing a restrictive functional form in estimation. When more flexible specifications are employed, the tendency is towards inelastic scope sensitivity. Then, we apply the scope elasticity concept to primary DCE data on people’s preferences for expanding the production of renewable energy in Norway. We find that the estimated scope elasticities vary between 0.13 and 0.58, depending on the attribute analyzed, model specification, geographic subsample, and the unit of measurement for a key attribute. While there is no strict and universally applicable benchmark for determining whether scope effects are economically significant, we deem these estimates to be of an adequate and plausible order of magnitude. Implications of the results for future DCE research are provided. Discrete choice experiments, Construct validity, Willingness to pay, Scope test, Elasticity, Economic significance, Stated preferences 1 2021 80 9 2 Environmental and Resource Economics 21 57 http://link.springer.com/10.1007/s10640-021-00577-7 text/html Abstract Anders Dugstad Norwegian University of Life Sciences Kristine M. Grimsrud Statistics Norway Gorm Kipperberg gorm.kipperberg@uis.no University of Stavanger Henrik Lindhjem Menon Centre for Environmental and Resource Economics Norwegian Institute for Nature Research (NINA) Ståle Navrud Norwegian University of Life Sciences
oai:RePEc:kap:enreec:v:80:y:2021:i:1:d:10.1007_s10640-021-00584-82021-08-22RePEc:kap:enreec
article Does Environmental Regulation Shape Entrepreneurship? Abstract This study investigates the causal effect of environmental regulation on entrepreneurship. By using China’s Two Control Zones policy in 1998 as an exogenous shock and a novel dataset about firm creation, our difference-in-differences-in-differences estimation shows that environmental regulation significantly deters entrepreneurship in pollution-intensive industries. Our results are robust to a series of endogeneity and robustness tests. A plausible mechanism is that the stringent regulation increases firm’s production costs, thus reducing expected profits and crowding out entrepreneurship. Moreover, we find that environmental regulation has a sizable and statistically significant effect only on entrepreneurship in areas with low corruption, high institutional quality, as entrepreneurs can hardly evade regulations through rent-seeking activities or other means. Environmental regulation, Entrepreneurship, China, Natural experiment 1 2021 80 9 6 Environmental and Resource Economics 169 196 http://link.springer.com/10.1007/s10640-021-00584-8 text/html Abstract Dongmin Kong kongdm@mail.hust.edu.cn Huazhong University of Science and Technology Ni Qin qinni@hust.edu.cn Huazhong University of Science and Technology
oai:RePEc:kap:enreec:v:80:y:2021:i:1:d:10.1007_s10640-021-00576-82021-08-22RePEc:kap:enreec
article Dynamic Integrated Model for Assessing Fisheries: Discard Bans as an Implicit Value-Added Tax Abstract Integrated economic models have become popular for assessing climate change. In this paper we show how these methods can be used to assess the impact of a discard ban in a fishery. We state that a discard ban can be understood as a confiscatory tax equivalent to a value-added tax. Under this framework, we show that a discard ban improves the sustainability of the fishery in the short run and increases economic welfare in the long run. In particular, we show that consumption, capital and wages show an initial decrease just after the implementation of the discard ban then recover after some periods to reach their steady-sate values, which are 16–20% higher than the initial values, depending on the valuation of the landed discards. The discard ban also improves biological variables, increasing landings by 14% and reducing discards by 29% on the initial figures. These patterns highlight the two channels through which discard bans affect a fishery: the tax channel, which shows that the confiscation of landed discards reduces the incentive to invest in the fishery; and the productivity channel, which increases the abundance of the stock. Thus, during the first few years after the implementation of a discard ban, the negative effect from the tax channel dominates the positive effect from the productivity channel, because the stock needs time to recover. Once stock abundance improves, the productivity channel dominates the tax channel and the economic variables rise above their initial levels. Our results also show that a landed discards valorisation policy is optimal from the social welfare point of view provided that incentives to increase discards are not created. Integranted económica models, DICE-RICE, Bayesian models, DYNARE, Discard ban, Age structured models 91B76, 92D25 1 2021 80 9 1 Environmental and Resource Economics 1 20 Q22 Q28 C61 http://link.springer.com/10.1007/s10640-021-00576-8 text/html Abstract Jose Maria Rocha jmrocha@uvigo.es Universidade de Vigo Javier García-Cutrín fjgarcia@uvigo.es Universidade de Vigo Maria-Jose Gutiérrez mariajose.gutierrez@ehu.eus University of the Basque Country (UIPV/EHU) Raul Prellezo rprellezo@azti.es AZTI Eduardo Sanchez edusanchez@uvigo.es Universidade de Santiago de Compostela
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article Optimal Emission Prices Over the Business Cycles Abstract We prove that under the most typical circumstances optimal emission prices are procyclical, i.e., prices should be lower during recessions. The procyclicality is more likely when emissions propagate very slowly into environmental damage. A prime example of such process is $$\hbox {CO}_2$$ CO 2 emissions. We show that carbon prices should be closely linked to the fluctuations of the marginal utility of consumption, which implies relatively modest magnitude of carbon price fluctuations. Our findings imply that climate policies should focus on setting the carbon price to the optimal growth path level and give carbon price fluctuations only a secondary role. Opposite to the carbon price, the cyclicality of optimal emissions depends on the production technology in the energy sector, and may become countercyclical in future if the technology mix becomes less fossil dependent. Pigouvian emission price, Social cost of carbon, Cyclical properties, DSGE, Emission tax, Cap and trade 1 2021 80 9 5 Environmental and Resource Economics 135 167 E32 Q54 Q58 http://link.springer.com/10.1007/s10640-021-00581-x text/html Abstract Jussi Lintunen Jussi.lintunen@luke.fi Jussi.lintunen@etla.fi Natural Resources Institute Finland (Luke) ETLA Economic Research Lauri Vilmi Lauri.vilmi@bof.fi Bank of Finland
oai:RePEc:kap:enreec:v:80:y:2021:i:1:d:10.1007_s10640-021-00578-62021-08-22RePEc:kap:enreec
article Stick or Carrot? Asymmetric Responses to Vehicle Registration Taxes in Norway Abstract Vehicle registrations have been shown to strongly react to tax reforms aimed at reducing CO2 emissions from passengers’ cars, but are the effects equally strong for positive and negative tax changes? The literature on asymmetric reactions to price and tax changes has documented asymmetries for everyday goods but has not yet considered durables. We leverage multiple vehicle registration tax (VRT) reforms in Norway and estimate their impact on within car-model substitutions. We estimate stronger effects for cars receiving tax cuts and rebates than for those affected by tax increases. The corresponding estimated elasticity is − 1.99 for VRT decreases and 0.77 for increases. As consumers may also substitute across car models, our estimates represent a lower bound. CO2 emissions intensity, New vehicles, Vehicle registration tax, Elasticity, Asymmetric response, Norway 1 2021 80 9 3 Environmental and Resource Economics 59 94 http://link.springer.com/10.1007/s10640-021-00578-6 text/html Abstract Alice Ciccone alice.ciccone@toi.no Institute of Transport Economics (TØI) Emilia Soldani soldani@econ.uni-frankfurt.de Goethe Universität
oai:RePEc:kap:enreec:v:80:y:2021:i:1:d:10.1007_s10640-021-00580-y2021-08-22RePEc:kap:enreec
article Discounting, Disagreement, and the Option to Delay Abstract Evaluating the benefits of investment projects related to climate change is complicated by disagreements surrounding the discount rate. It is widely known that greater discount-rate heterogeneity increases the weighted-average present value of investing if the weighted-average discount rate is held constant, which therefore reduces the minimum internal rate of return needed to justify now-or-never investment. A larger adjustment is appropriate for projects with longer lives. I extend this analysis in two directions, first by giving the decision-maker the option to delay investment. Greater discount-rate heterogeneity also increases the weighted-average present value of the option to wait and reevaluate investment in the future. This weakens the relationship between discount-rate heterogeneity and the optimal investment threshold—and in some cases actually reverses it. When discount rates are low and the project’s lifetime is short, increases in discount-rate heterogeneity can lead to tougher (not easier) optimal investment tests. The second extension examines the effect on these results of using different approaches to aggregate opinions about the discount rate, including the $$\alpha$$ α -maxmin, minimax-regret, and multi-utilitarian criteria. Social discount rate, Cost-benefit analysis, Real-options analysis, Discount-rate heterogeneity, Climate change 1 2021 80 9 4 Environmental and Resource Economics 95 133 D61 G31 Q54 R42 http://link.springer.com/10.1007/s10640-021-00580-y text/html Abstract Graeme Guthrie graeme.guthrie@vuw.ac.nz Victoria University of Wellington
oai:RePEc:kap:enreec:v::y::i::d:10.1007_s10640-020-00433-02020-06-23RePEc:kap:enreec
article Emission Regulation of Markets with Sluggish Supply Structures Abstract I examine regulation in the presence of convex investment costs and technology specific capacity stocks. Announcement of future emission taxes reduces current emissions unless fossil fuels are scarce, in which case the effect is ambiguous. Substantial future emission reductions require action today, because it takes time to build up clean production capacity and phase out dirty capacity. The Pigou tax must be coupled with sector specific investment taxes or subsidies to induce the socially optimal trajectory if the private discount rate differs from the social discount rate. If such investment taxes or subsidies are unavailable, a (time-inconsistent) second-best alternative may be to tax emissions above the Pigouvian level during the transition phase. The theory is complemented with a stylized numerical model of the US electricity market. Adjustment costs, Investment, Pollution, Regulation Environmental and Resource Economics 1 33 H21 H23 Q35 Q41 Q54 http://link.springer.com/10.1007/s10640-020-00433-0 text/html Abstract Halvor B. Storrøsten hbs@ssb.no Statistics Norway
oai:RePEc:kap:enreec:v:71:y:2018:i:1:d:10.1007_s10640-017-0149-02018-09-01RePEc:kap:enreec
article Convex Time Budgets and Individual Discount Rates in the Long Run Abstract The purpose of this study is to use experimental data to estimate individual discount rates and test for hyperbolic discounting over a long time horizon. To do this, we employ the convex time budget experimental approach with cash payments over a 20 year time horizon. To date, there are few experimental studies that explore discount rates beyond a 1 year time horizon. Previous experimental studies that focus on short time horizons find high discount rates, which may not be applicable to decisions that affect outcomes in the distant future. Our findings are quite similar to the average rate of 4.9% found by Grijalva et al. (Environ Resour Econ 59:39–63, 2014), who similarly use a 20 year time horizon, but use the multiple price list elicitation method along with payment via government savings bonds. We find annual discounts rates in the range of 1.9–5.5%, depending on the specific model used. We also find evidence for declining discount rates, and that this hyperbolic pattern of behavior is related to the confidence subjects have in receiving distant-future payments. Discount rate, Benefit-cost analysis, Convex time budgets, Hyperbolic discounting, Long time horizon 1 2018 71 9 12 Environmental and Resource Economics 259 277 http://link.springer.com/10.1007/s10640-017-0149-0 text/html Abstract Therese C. Grijalva tgrijalva@weber.edu Weber State University Jayson L. Lusk jayson.lusk@okstate.edu Oklahoma State University Rong Rong rrong@umass.edu University of Massachusetts W. Douglass Shaw wdshaw@tamu.edu Texas A&M University
oai:RePEc:kap:enreec:v:71:y:2018:i:1:d:10.1007_s10640-017-0150-72018-09-01RePEc:kap:enreec
article Environmental Policy in the Presence of Induced Technological Change Abstract We examine the hypothesis that induced technological change (ITC) can dramatically lower the cost of a carbon tax in a static optimal tax model. The research and development sector is represented by an aggregate stock of energy-saving technology, which acts as a weak substitute with a polluting resource in the energy generation sector. Using this model, we analytically show how ITC occurs and affects the cost of a carbon tax. Applying quantitative estimates of the size of ITC to numerical simulations calibrated to the US economy, we find that existing empirical evidence can reduce the welfare cost of environmental tax reform by 12%. Our tests of alternative parameters show that this result is highly sensitive to the assumptions used, suggesting that ITC could result in much larger reductions in cost. Induced technological change, Double dividend, Carbon taxes, Optimal environmental tax, Returns to specialization 1 2018 71 9 13 Environmental and Resource Economics 279 299 H21 Q41 Q54 Q55 Q58 http://link.springer.com/10.1007/s10640-017-0150-7 text/html Abstract Antung Anthony Liu aaliu@indiana.edu Indiana University School of Public and Environmental Affairs Hiroaki Yamagami yamagami@econ.seikei.ac.jp Seikei University University Paris 1 Panthéon-Sorbonne
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article International Environmental Agreements—The Role of Foresight Abstract The present paper attempts to bridge the gap between the cooperative and the non-cooperative approach employed to examine the size of stable coalitions, formed to address global environmental problems. We do so by endowing countries with foresightedness, that is, by endogenizing the reaction of the coalition’s members to a deviation by one member. We assume that when a country contemplates withdrawing or joining an agreement, it takes into account the reactions of other countries ignited by its own actions. We identify conditions under which there always exists a unique set of farsighted stable IEAs. The new farsighted IEAs can be much larger than those some of the previous models supported but are not always Pareto efficient. Environmental agreements, Foresight, Stable set 1 2018 71 9 11 Environmental and Resource Economics 241 257 D6 Q5 C7 http://link.springer.com/10.1007/s10640-017-0148-1 text/html Abstract Effrosyni Diamantoudi Concordia University Eftichios S. Sartzetakis esartz@uom.edu.gr University of Macedonia
oai:RePEc:kap:enreec:v:71:y:2018:i:1:d:10.1007_s10640-017-0143-62018-09-01RePEc:kap:enreec
article Jurisdictional Tax Competition and the Division of Nonrenewable Resource Rents Abstract This paper presents a model of nonrenewable resource extraction across multiple jurisdictions which engage in strategic tax competition. The model incorporates rents due to both resource scarcity and capital scarcity as well as intra-region Ricardian rents. Regions set taxes on nonrenewable resource production strategically to balance tax revenues and local benefits from investment conditional on other regions’ tax rates. A representative extraction firm then allocates production capital across regions and time to maximize the present value of profits. Generally, we find that the division of resource rent between firms and regional governments ultimately depends on the relative scarcity of natural and production capital, relative costs across space, and the value regional governments place on economic activity. This theoretical result provides policymakers with information on the determinants of optimal tax rates and motivates future empirical research on the factors influencing the division of resource rent in practice. Strategic tax competition, Severance tax, Hotelling, Oil production, Dynamic optimization 1 2018 71 9 8 Environmental and Resource Economics 179 204 http://link.springer.com/10.1007/s10640-017-0143-6 text/html Abstract Peter Maniloff maniloff@mines.edu Colorado School of Mines Dale T. Manning dale.manning@colostate.edu Colorado State University
oai:RePEc:kap:enreec:v:71:y:2018:i:1:d:10.1007_s10640-017-0136-52018-09-01RePEc:kap:enreec
article Green Electricity Markets as Mechanisms of Public-Goods Provision: Theory and Experimental Evidence Abstract Utility-based green electricity programs provide market opportunities for consumers to reduce the carbon footprint of their electricity use. These programs deploy three types of public-goods contribution mechanisms: voluntary contribution, green tariff, and all-or-nothing green tariff (Kotchen and Moore, 2007). We extend the theoretical understanding of the all-or-nothing green tariff mechanism by showing that an assumption of warm-glow preferences is needed to explain widespread participation in programs deploying this mechanism. We conduct the first experimental test to compare the revenue generating capacity of a pure public good (based on the voluntary contribution mechanism) and an impure public good (based on the green tariff mechanism). In experimental play, the voluntary contribution mechanism raises 50% more revenue than the green tariff mechanism. With the all-or-nothing green tariff, experimental play and regression estimates show that a warm-glow preference positively affects participation, as predicted by the theory. Impure public good, Laboratory experiment, Voluntary environmental program, Warm-glow altruism 1 2018 71 9 3 Environmental and Resource Economics 45 71 C92 D01 H41 Q42 http://link.springer.com/10.1007/s10640-017-0136-5 text/html Abstract Arnab Mitra amitra@pdx.edu Portland State University Michael R. Moore University of Michigan
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article Adaptation and International Environmental Agreements Abstract We study the impact of collective effort in R&D in adaptation technologies, and also spillover effects on formation and size of stable international environmental agreements (IEAs). Our results suggest that it is possible to have more than one size of stable IEA. We can achieve a superior equilibrium, i.e., the grand coalition, if countries manage to keep knowledge spillovers low and arrange a minimum ratification threshold. This threshold is defined endogenously. We also shed light on the effects of two-sided spillover on global welfare and the size of stable IEAs. International environmental agreements, Adaptation technology, Minimum participation clause, Climate change, Knowledge spillover 1 2018 71 9 1 Environmental and Resource Economics 1 21 Q50 Q54 C72 http://link.springer.com/10.1007/s10640-016-0080-9 text/html Abstract Nahid Masoudi nmasoudi@mun.ca Memorial University of Newfoundland Georges Zaccour georges.zaccour@gerad.ca HEC Montréal
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article Ecosystem Service Valuation for National Accounting: A Reply to Obst, Hein and Edens (2016) Abstract While recent experimental frameworks for national ecosystem service accounting have shown substantial progress, in our view some crucial methodological issues remain that deserve further consideration before setting final standards. In response to the landmark work of Obst et al. (Environ Resour Econ 64:1–23, 2016. doi: 10.1007/s10640-015-9921-1 ), we provide arguments with regard to the suitability of particular valuation approaches. Generally, we agree that respective valuation methods need to produce values that are consistent with national accounting standards such as representing exchange values. However, we disagree with their conclusions regarding specific valuation techniques. Firstly, the circumstance that methods used for estimating shadow prices can also be used to derive consumer surplus does not justify the general exclusion of all shadow pricing methods for valuation of ecosystem services for national accounts, especially for public ecosystem services. Secondly, that preference-based methods can also be used to assess welfare changes does not imply that cost-based methods are generally better suited for ecosystem accounting. To the contrary, we see an essential need for preference information in accounting contexts. Thirdly, that accounting standards use a written-down replacement cost approach, does not mean ecosystem accounting requires to employ a replacement cost approach. To the contrary, we argue that assessing ecosystem degradation through restoration costs would be in line with writing down depreciation, but we also point to its limits. Accounting standards, Ecosystem services, Economic valuation, Natural capital 1 2018 71 9 9 Environmental and Resource Economics 205 215 E01 Q01 Q51 Q56 Q57 http://link.springer.com/10.1007/s10640-017-0146-3 text/html Abstract Nils Droste nils.droste@ufz.de UFZ - Helmholtz Centre for Environmental Research Bartosz Bartkowski bartosz.bartkowski@ufz.de UFZ - Helmholtz Centre for Environmental Research
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article Natural Resource Federalism: Preferences Versus Connectivity for Patchy Resources Abstract We examine the efficiency of centralized versus decentralized management of spatially-connected renewable resources when users have heterogeneous preferences for conservation versus extraction. Resource mobility induces a spatial externality, while spatial preference heterogeneity drives a wedge between users’ privately optimal extraction rates. We first address these market failures analytically and show that the first is most efficiently handled with centralized planning while the second is best tackled with decentralized management. Except in special cases, neither approach will be first best, but which arises as second best depends on the relative strength of preference heterogeneity versus spatial mobility of the resource. We illustrate the theory, and test its robustness, with a numerical example. Renewable resources, Federalism, Spatial externalities, Property rights 1 2018 71 9 5 Environmental and Resource Economics 99 126 http://link.springer.com/10.1007/s10640-017-0138-3 text/html Abstract Christopher Costello costello@bren.ucsb.edu University of California, Santa Barbara National Bureau of Economic Research Daniel Kaffine daniel.kaffine@colorado.edu University of Colorado Boulder
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article Shaping the Relationship Between Economic Development and Carbon Dioxide Emissions at the Local Level: Evidence from Spatial Econometric Models Abstract The debate over the correlation between economic growth and environmental pollution has attracted a great deal of attention from academic researchers and policy makers in recent years. There has been excessive use of spatial econometric models and too much emphasis on statistical procedures in empirical studies. In this study, we contribute to the existing literature by conducting a more rigorous analysis of the relationship between economic growth and $$\hbox {CO}_{2}$$ CO 2 emissions in Chinese cities using spatial Durbin models. Our results show that $$\hbox {CO}_{2}$$ CO 2 emissions increase monotonically in relation to economic growth at the city level and that the driving effects of economic growth are slightly smaller in central China than in eastern and western China. In addition to economic growth, industry’s share of the economy is a major driver of $$\hbox {CO}_{2}$$ CO 2 emissions, while technological improvement, measured by energy intensity per unit of gross domestic product (GDP), and the effectiveness of environmental governance flatten the shape of the environmental Kuznets curve. We provide evidence of local spillover effects of explanatory variables on $$\hbox {CO}_{2}$$ CO 2 emissions. Economic competition as well as technological diffusion are found to exist in Chinese cities in relation to $$\hbox {CO}_{2}$$ CO 2 emissions. We also find carbon leakage between cities only if the per capita GDP of a given city is less than $493 (in 2010 constant dollars). Results hold when robustness checks are performed. Policy makers should carefully consider regional differences and the inherent spatial interactions between factors when formulating carbon reduction policies. Environmental Kuznets curve, Spatial econometric model, Carbon emissions, Chinese cities 1 2018 71 9 6 Environmental and Resource Economics 127 156 http://link.springer.com/10.1007/s10640-017-0139-2 text/html Abstract Lina Meng Xiamen University Bo Huang bohuang@cuhk.edu.hk The Chinese University of Hong Kong, Shatin The Chinese University of Hong Kong, Shatin
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article Storm Damage and Risk Preferences: Panel Evidence from Germany Abstract Individuals’ risk preferences may change after experiencing external socio-economic or natural shocks. Theoretical predictions and empirical studies suggest that risk taking may increase or decrease after experiencing shocks. So far the empirical evidence is sparse, especially when it comes to developed countries. We contribute to this literature by investigating whether experiencing financial and health-related damage caused by storms affects risk preferences of individuals in Germany. Using unique panel data, we find that household heads were more risk-seeking after they experienced storm damage. We do not find evidence of exposure to storm per se (regardless of damage experience), which suggests that household heads have to suffer damage for their risk preferences to be affected. These results are robust across a battery of alternative model specifications and alternative storm damage measures (magnitude of financial damage). We rule out other potential explanations such as health-related and economic shocks. The self-reported storm damage data is broadly confirmed by regional storm damage data provided by the insurance industry. While we cannot identify the channels through which experiencing storm damage affects risk preferences from our data, we suggest and discuss some potential channels. The results may have important policy implications as risk preferences affect, for instance, individuals’ savings and investment behaviour, adoption of self-protection and self-insurance strategies, and technology adoption. Extreme weather, Risk preferences, Risk seeking, Storm damage, Panel data 1 2018 71 9 14 Environmental and Resource Economics 301 318 C23 D03 D81 Q54 http://link.springer.com/10.1007/s10640-017-0152-5 text/html Abstract Goytom Abraha Kahsay goytom@ifro.ku.dk University of Copenhagen Daniel Osberghaus osberghaus@zew.de Centre for European Economic Research
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article Authorship, Collaboration, Topics, and Research Gaps in Environmental and Resource Economics 1991–2015 Abstract Environmental and Resource Economics is one of the premier journals in the field of environmental economics. It was established with an aspiration to focus more on applied and policy relevant research compared to other established journals, and to establish better channels of communication and collaboration between researchers from Europe and other parts of the world. We present a text based exploratory analysis of 1630 articles published in the Journal from 1991 to 2015 that suggests the Journal has been somewhat successful in meeting both these aims. Perhaps more importantly, it shows the Journal continues to progress toward these goals. The European authors are the largest contributors to the Journal, which is in contrast to other prominent journals (such as Journal of Environmental Economics and Management and Ecological Economics). And while most of the collaboration has occurred within this geographic region (e.g., European authors collaborated with other European authors more frequently), this trend appears to be changing as the proportion of articles written by international collaborators is gradually increasing. Topic analysis reveals that almost all of the articles could be grouped under applied and/or policy relevant topics, and almost two-thirds of the articles are empirical in nature, which suggest that the journal has been able to fulfil both of its commitments. We also investigate trends in research foci over the last 25 years and what kind of research gaps can be discerned. Topic analysis, Latent Dirichlet allocation, Co-authorship, Environmental and resource economics 1 2018 71 9 10 Environmental and Resource Economics 217 239 A11 A14 Q0 http://link.springer.com/10.1007/s10640-017-0147-2 text/html Abstract Maksym Polyakov maksym.polyakov@uwa.edu.au University of Western Australia Morteza Chalak morteza.chalak@uwa.edu.au University of Western Australia Md. Sayed Iftekhar mdsayed.iftekhar@uwa.edu.au University of Western Australia Ram Pandit ram.pandit@uwa.edu.au University of Western Australia Sorada Tapsuwan Sorada.Tapsuwan@csiro.au Fan Zhang fan.zhang@uwa.edu.au University of Western Australia Chunbo Ma chunbo.ma@uwa.edu.au University of Western Australia
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article Intertemporal Emission Permits Trading Under Uncertainty and Irreversibility Abstract This paper analyzes the effect of emission permit banking on clean technology investment and abatement under conditions where the stringency of the future cap is uncertain. We examine the problem of heterogeneous firms minimizing the cost of intertemporal emission control in the presence of stochastic future pollution standards and emission permits that are tradable across firms and through time. A firm can invest in clean capital (an improved pollution abatement technology) to reduce its abatement cost. We consider two possibilities: that investment is reversible or irreversible. Uncertainty is captured within a two period model: only the current period cap is known. We show that if banking is positive and marginal abatement costs are sufficiently convex, there will be more abatement and investment in clean technology under uncertainty than there would be under certainty and no banking. These results are at odds with the common belief that uncertainty on future environmental policy is a barrier to investment in clean capital. Moreover, under uncertainty and irreversibility, we find that there are cases where banking enables firms to invest more in clean capital. Cap uncertainty, Abatement, Banking, Investment in clean capital, Irreversibility 1 2018 71 9 4 Environmental and Resource Economics 73 97 http://link.springer.com/10.1007/s10640-017-0137-4 text/html Abstract Aude Pommeret City University of Hong Kong IREGE University of Savoie Mont Blanc Katheline Schubert schubert@univ-paris1.fr University Paris 1 Panthéon-Sorbonne
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article Correction to: Impact of Carbon Pricing on Low-Carbon Innovation and Deep Decarbonisation: Controversies and Path Forward 4 2021 80 12 3 Environmental and Resource Economics 717 717 http://link.springer.com/10.1007/s10640-021-00608-3 text/html Abstract Jeroen den Bergh jeroen.bergh@uab.es Universitat Autònoma de Barcelona ICREA VU University Amsterdam ICTA, Edifici Z, UAB Campus Ivan Savin ivan.savin@uab.cat Universitat Autònoma de Barcelona Ural Federal University
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article Is There an Extended Education-Based Environmental Kuznets Curve? An Analysis of U.S. States Abstract This is the first paper to use U.S. state-level data to econometrically assess education’s role in an environmental Kuznets curve setting. The empirical analysis involves testing several models to evaluate the impact of education on carbon dioxide (CO2) emissions and energy consumption and determine the shape of their interrelationships. We employ recent econometric approaches that deal with the bias arising in panel datasets due to cross-section dependence. Our findings indicate that education attainment contributes significantly and positively towards environmental improvements. Granger causality tests reveal that CO2 discharges and energy usage are caused by education. Furthermore, education exhibits a U-shaped relationship with energy consumption and carbon emissions, providing evidence that education can improve environmental quality in the long term. Education, Energy consumption, Carbon emissions, Environmental Kuznets curve, Cross-section dependence 4 2021 80 12 6 Environmental and Resource Economics 795 819 C5 I2 Q5 http://link.springer.com/10.1007/s10640-021-00610-9 text/html Abstract Muhammad Shafiullah Muhammad.Shafiullah@nottingham.edu.my University of Nottingham Malaysia Vassilios G. Papavassiliou vassilios.papavassiliou@ucd.ie University College Dublin Muhammad Shahbaz muhdshahbaz77@gmail.com Beijing Institute of Technology
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article Any Signs of Green Growth? A Spatial Panel Analysis of Regional Air Pollution in South Korea Abstract Focusing on air emissions in South Korean provinces, we investigate whether economic growth has become greener since the implementation of the national green growth strategy in 2009. Given the relevance of regional elements in the economic and environmental policies, the focus lies on spatial aspects. That is, spillovers from nearby provinces are controlled for in a SLX model by means of the Han–Phillips estimator for dynamic panel data. Our results suggest mainly the existence of inverted N-shaped Environmental Kuznets curves for sulfur oxides (SOX) and total suspended particles (TSP). As the curves initially decrease strongly with increasing income, the main cleanup is achieved with the mean income level. However, abatement of the remaining TSP emissions only takes place at higher income levels. While the fixed effects estimations indicate that per capita SOX and TSP emissions have been significantly lower since 2009, the effects vanish once spatial interactions are taken into account and no evidence is found that regional economic growth has become greener. Apart from economic growth, population density and energy consumption are the main drivers of emission changes, with the latter having robust spatial spillovers. The respective spatial interactions decrease with increasing distance and become insignificant after 150 km. Air emissions, Green growth, Spatial econometric model, Environmental Kuznets curve, Republic of Korea 4 2021 80 12 4 Environmental and Resource Economics 719 760 http://link.springer.com/10.1007/s10640-021-00607-4 text/html Abstract Erik Hille Erik.Hille@hhl.de HHL Leipzig Graduate School of Management Bernhard Lambernd Bernhard.Lambernd@hhl.de HHL Leipzig Graduate School of Management Aviral K. Tiwari Aviral.Eco@gmail.com Rajagiri Valley Campus
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article COVID-19’s U.S. Temperature Response Profile Abstract We estimate the U.S. temperature response profile (TRP) for COVID-19 and show it is highly sensitive to temperature variation. Replacing the erratic daily death counts U.S. states initially reported with counts based on death certificate date, we build a week-ahead statistical forecasting model that explains most of their daily variation (R2 = 0.97) and isolates COVID-19’s TRP (p Data temporal alignment, Epidemiology, Forecasting, Temperature sensitivity 4 2021 80 12 1 Environmental and Resource Economics 675 704 http://link.springer.com/10.1007/s10640-021-00603-8 text/html Abstract Richard T. Carson rcarson@ucsd.edu University of California Samuel L. Carson Independent Consultant Thayne K. Dye Independent Consultant Samuel A. Mayfield University of California Daniel C. Moyer Massachusetts Institute of Technology Chu A. Yu Wake Forest University
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article A Spatial Dynamic Model for Export Intensity of Hazardous Industrial Waste: The Incentive Effect of Regional Environmental Policies Abstract This paper analyses, in the context of the Environmental Kuznet Curve, the determinants of export intensity of hazardous industrial waste among Spanish regions, with particular attention to the influence of waste taxes and of environmental policies. This study is carried out for the first time in the literature with a spatial dynamic model, fixed effects and panel data for the 17 regions (Comunidades Autónomas) of Spain during the period 2007–2017. The results suggest there is a spatial-dynamic component to export intensity, and that both regional taxes on waste disposal and environmental policy stringency appear to encourage, albeit modestly, the rate of exported waste to other regions. The model also shows that the more regions recycle, and the greater the economies of scale arising from industrial agglomeration, the lower is the region’s waste export intensity, although increasing restrictions on the international trade in hazardous waste have intensified trading inside the country. Finally, the results suggest a non-linear relationship between growth and export intensity, although apparently we are still far from the absolute decoupling of the Environmental Kuznet Curve. Hazardous industrial waste, Export intensity, Waste disposal tax, Environmental policy stringency, Spatial nexus, Temporal persistence 4 2021 80 12 8 Environmental and Resource Economics 859 888 F1 H2 H3 H7 Q5 http://link.springer.com/10.1007/s10640-021-00612-7 text/html Abstract Jaime Vallés-Giménez jvalles@unizar.es University of Zaragoza University of Zaragoza Anabel Zárate-Marco azarate@unizar.es University of Zaragoza University of Zaragoza
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article Price and Consumption Misperception Profiles: The Role of Information in the Residential Water Sector Abstract Consumer misperceptions about key economic variables, such as price or consumption, often hinder the effectiveness of natural resources management policies. When facing increasing block rates, water users might fail to identify the marginal price of their water use and guide themselves by information from their past total bill and water use amounts. However, this information might not be correctly perceived or remembered. By comparing them with actual bimonthly billing data from 1465 households in Granada (Spain), we study the inaccuracy of the users’ recollections during an in-person survey that also asked them about their characteristics, environmental and conservation habits, and exposure to informational policies. A conditional mixed-process selection model is used to test the hypothesis that the degree of inaccuracy in the recollection of past water bill and consumption amounts is related to indicators of the costs and benefits of acquiring the relevant information. Then, a latent class model exploits unobserved household heterogeneity to sort households into two classes—based on whether and how accurately they recalled past bill and consumption amounts—and to estimate the probability of belonging to each class, based on observable characteristics. We derive policy recommendations and show that knowledge of consumption and bill size is rather poor but that informational policies could improve consumer knowledge and the effectiveness of pricing policies. Finally, we identify which informational policies might be most effective and what type of consumers are most likely to respond to such policies. Latent class model, Perception bias, Price perceptions, Pricing policies, Water tariffs 4 2021 80 12 7 Environmental and Resource Economics 821 857 http://link.springer.com/10.1007/s10640-021-00611-8 text/html Abstract María Á. García-Valiñas Universidad de Oviedo Roberto Martínez-Espiñeira rmartinezesp@mun.ca Memorial University of Newfoundland Marta Suárez-Varela Maciá Banco de España
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article Impact of Carbon Pricing on Low-Carbon Innovation and Deep Decarbonisation: Controversies and Path Forward Abstract There is an ongoing discussion about the effectiveness of carbon pricing, with a strong division between optimists and pessimists. A recent review study by Lilliestam, Patt and Bersalli (2021) of the impact of carbon pricing on low-carbon innovation and deep carbonization concludes that there is no evidence for such an impact. We evaluate this study and identify various shortcomings of it, which together cast strong doubts on its main conclusion. Instead, we conclude, based on the studies reviewed by the authors and additional, overlooked literature, that carbon pricing has had a small but positive and significant effect on low-carbon innovation. Our evaluation provides lessons for undertaking a systematic and objective review of research on this topic. Since the main goal of carbon pricing is changing choices by firms and consumers that affect carbon emissions, we also point the reader towards recent evidence for the broader effectiveness of carbon pricing. Carbon tax, Emissions trading, Energy price, Induced innovation, Investment, Literature review 4 2021 80 12 2 Environmental and Resource Economics 705 715 http://link.springer.com/10.1007/s10640-021-00594-6 text/html Abstract Jeroen den Bergh jeroen.bergh@uab.es Universitat Autònoma de Barcelona ICREA VU University Amsterdam ICTA, Edifici Z, UAB Campus Ivan Savin ivan.savin@uab.cat Universitat Autònoma de Barcelona Ural Federal University
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article Seemingly Unrelated Interventions: Environmental Management Systems in the Workplace and Energy Saving Practices at Home Abstract To reduce their environmental impacts, a growing number of organizations worldwide have implemented environmental management systems (EMSs). In these organizations, energy conservation activities become usual behaviors for employees; thus, we hypothesize that employees continue such energy saving behaviors at home. This hypothesis is supported by data from surveys of individuals in Japan. Specifically, we find that the probability of engaging in energy saving practices at home is higher and that expenditures on electricity use are lower for individuals who work in organizations that implement EMSs than for individuals who do not work in organizations with EMSs. Our results suggest that beyond the original purpose of helping organizations reduce their environmental impacts, EMSs work as an intervention to promote household energy saving. Energy saving practices, Electricity, Environmental management system, ISO14001, Energy efficiency, Household electricity expenditure 4 2021 80 12 5 Environmental and Resource Economics 761 794 Q40 Q50 http://link.springer.com/10.1007/s10640-021-00609-2 text/html Abstract Toshi H. Arimura toshi.arimura@gmail.com Waseda University Waseda University Kazuyuki Iwata iwata.kazuyu@gmail.com Matsuyama University Hajime Katayama hajime.katayama@waseda.jp Waseda University Mari Sakudo sakudo@sk.tsukuba.ac.jp University of Tsukuba
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article Compensation Payments and Animal Disease: Incentivising Farmers Both to Undertake Costly On-farm Biosecurity and to Comply with Disease Reporting Requirements Abstract This paper examines the issue of compensation payments for farmers affected by an animal disease outbreak. Recent literature has questioned the scope for the widely used “single mechanism” of compensation payments to incentivise farmers both to undertake costly on-farm biosecurity and to comply with disease reporting requirements. This paper develops a simple theoretical model of the farmer’s decision environment in this situation and uses a numerical analysis to illustrate both the potential for a range of levels of compensation payments to achieve this dual incentivising, and how this range is affected by changes in the parameter values of the farmer’s decision environment. The findings of the paper are used to suggest a range of policy implications in relation to compensation payments in the UK. Compensation payments, Animal disease, Incentivising farmers, On-farm biosecurity, Disease reporting requirements 3 2018 70 7 3 Environmental and Resource Economics 617 629 http://link.springer.com/10.1007/s10640-016-0102-7 text/html Abstract Rob Fraser r.w.fraser@kent.ac.uk University of Kent
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article The Effects of Disease on Optimal Forest Rotation: A Generalisable Analytical Framework Abstract The arrival of novel pathogens and pests can have a devastating effect on the market values of forests. Calibrating management strategies/decisions to consider the effect of disease may help to reduce disease impacts on forests. Here, we use a novel generalisable, bioeconomic model framework, which combines an epidemiological compartmental model with a Faustmann optimal rotation length model, to explore the management decision of when to harvest a single rotation, even-aged, plantation forest under varying disease conditions. Sensitivity analysis of the rate of spread of infection and the effect of disease on the timber value reveals a key trade-off between waiting for the timber to grow and the infection spreading further. We show that the optimal rotation length, which maximises the net present value of the forest, is reduced when timber from infected trees has no value; but when the infection spreads quickly, and the value of timber from infected trees is non-zero, it can be optimal to wait until the disease-free optimal rotation length to harvest. Our original approach provides an exemplar framework showing how a bioeconomic model can be used to examine the effect of tree diseases on management strategies/decisions. Disease, Faustmann, Forest management, Forestry, Optimal rotation length, Bioeconomic modelling 3 2018 70 7 1 Environmental and Resource Economics 565 588 http://link.springer.com/10.1007/s10640-016-0077-4 text/html Abstract Morag F. Macpherson mfm@cs.stir.ac.uk University of Stirling Adam Kleczkowski University of Stirling John R. Healey Bangor University Nick Hanley University of St Andrews
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article What a Difference a Stochastic Process Makes: Epidemiological-Based Real Options Models of Optimal Treatment of Disease Abstract The real options approach has been used within environmental economics to investigate the impact of uncertainty on the optimal timing of control measures to minimise the impacts of invasive species, including pests and diseases. Previous studies typically model the growth in infected area using geometric Brownian motion (GBM). The advantage of this simple approach is that it allows for closed form solutions. However, such a process does not capture the mechanisms underlying the spread of infection. In particular the GBM assumption does not respect the natural upper boundary of the system, which is determined by the maximum size of the host species, nor the deceleration in the rate of infection as this boundary is approached. We show how the stochastic process describing the growth in infected area can be derived from the characteristics of the spread of infection. If the model used does not appropriately capture uncertainty in infection dynamics, then the excessive delay before treatment implies that the full value of the option to treat is not realised. Indeed, when uncertainty is high or the disease is fast spreading, ignoring the mechanisms of infection spread can lead to control never being deployed. Thus the results presented here have important implications for the way in which the real options approach is applied to determine optimal timing of disease control given uncertainty in future disease progression. Real options, Logistic SDE, Disease control, Stochastic epidemics, Optimal timing 3 2018 70 7 7 Environmental and Resource Economics 691 711 http://link.springer.com/10.1007/s10640-017-0168-x text/html Abstract C. E. Dangerfield ced57@cam.ac.uk University of Cambridge A. E. Whalley University of Warwick N. Hanley University of St Andrews C. A. Gilligan University of Cambridge
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article Managing Wildlife Faced with Pathogen Risks Involving Multi-Stable Outcomes Abstract Most models designed to understand how to manage infected wildlife systems with bioeconomic multi-stability take the initial conditions as given, thereby treating pathogen invasion as unanticipated. We examine how ex ante management is an opportunity to influence the ex post conditions, which in turn affect the ex post optimal outcome. To capture these ex ante management choices, we extend the Poisson “collapse” model of Reed and Heras (Bull Math Biol 54:185–207, 1992) to allow for endogenous initial conditions and ex post multi-stability. We account for two uncertain processes: the introduction and establishment of the pathogen. Introduction is conditional on anthropogenic investments in prevention, and both random processes are conditional on how we manage the native population to provide natural prevention of invasion and natural insurance against establishment placing the system in an undesirable basin of attraction. We find that both multi-stability of the invaded system and these uncertainty processes can create economic non-convexities that yield multiple candidate solutions to the ex ante optimization problem. Additionally, we illustrate how the nature of natural protection against introduction and establishment risks can play an important role in the allocation of anthropogenic investments. Endogenous risk, Optimal control, Pathogen invasion 3 2018 70 7 8 Environmental and Resource Economics 713 730 Q2 Q57 http://link.springer.com/10.1007/s10640-018-0227-y text/html Abstract Richard D. Horan horan@msu.edu Michigan State University David Finnoff finnoff@uwyo.edu University of Wyoming Kevin Berry kberry13@alaska.edu University of Alaska Anchorage Carson Reeling carson.reeling@wmich.edu Western Michigan University Jason F. Shogren jramses@uwyo.edu University of Wyoming
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article Economic Incentives for Managing Filterable Biological Pollution Risks from Trade Abstract Infectious livestock disease problems are “biological pollution” problems. Prior work on biological pollution problems generally examines the efficient allocation of prevention and control efforts, but does not identify the specific externalities underpinning the design of efficiency-enhancing policy instruments. Prior analyses also focus on problems where those being damaged do not contribute to externalities. We examine a problem where the initial biological introduction harms the importer and then others are harmed by spread from this importer. Here, the externality is the spread of infection beyond the initial importer. This externality is influenced by the importer’s private risk management choices, which provide impure public goods that reduce disease spillovers to others—making disease spread a “filterable externality.” We derive efficient policy incentives to internalize filterable disease externalities given uncertainties about introduction and spread. We find efficiency requires incentivizing an importer’s trade choices along with self-protection and abatement efforts, in contrast to prior work that targets trade alone. Perhaps surprisingly, we find these incentives increase with importers’ private risk management incentives and with their ability to directly protect others. In cases where importers can spread infection to each other, we find filterable externalities may lead to multiple Nash equilibria. Biological pollution, Disease, Filterable externality, Policy design, Strategic interactions, Trade 3 2018 70 7 5 Environmental and Resource Economics 651 671 http://link.springer.com/10.1007/s10640-017-0160-5 text/html Abstract Carson Reeling carson.reeling@wmich.edu Western Michigan University Richard D. Horan Michigan State University
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article Taking One for the Team: Is Collective Action More Responsive to Ecological Change? Abstract Debate persists around the timing of risk reduction strategies for large-scale ecological change for three reasons: risks are difficult to predict, they involve irreversibilities, and they impact multiple jurisdictions. The combination of these three factors creates a general class of filterable spatial-dynamic externalities (FSDE) in which one person’s risk reduction investments reduce or filter undesirable events experienced by others and underestimates the option value placed on being able to respond to new information about the consequences of ecological change. By focusing on the optimal intervention decision, we illustrate how and when the opposing forces created by an FSDE will lead to a divergence in private and collective risk reduction strategies. We use bioinvasions as our motivating example. The bioinvasion first hits one jurisdiction, and that jurisdiction’s risk reduction investment reduces the risk faced by all other jurisdiction. We find that efforts to internalize the full benefits of risk reduction investments may have unintended consequences on the responsiveness of environmental policy. There is a social welfare gain from asking the first jurisdiction to delay a risk reduction investment to internalize the option values of all at-risk jurisdictions. Filterable externality, Uncertainty, Irreversibility, Real options, Precautionary principle 3 2018 70 7 2 Environmental and Resource Economics 589 615 D81 D83 D62 Q54 http://link.springer.com/10.1007/s10640-016-0099-y text/html Abstract Charles Sims cbsims@utk.edu Howard H. Baker Jr. Center for Public Policy University of Tennessee David Finnoff finnoff@uwyo.edu University of Wyoming Jason F. Shogren Jramses@uwyo.edu University of Wyoming
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article A Portfolio-Balancing Approach to Natural Capital and Liabilities: Managing Livestock and Wildlife Diseases with Cross-Species Transmission Abstract Researchers often refer to stocks of desirable natural resources as natural capital and stocks of undesirable species as natural liabilities. The logical extension is that when these natural resources interact, then the ecosystem is a collection or portfolio of natural capital and liabilities. However, natural capital and liabilities held in an ecosystem portfolio are more complex to manage than financial asset portfolios. The key problem in a financial asset portfolio is adjusting the rates of return on assets for risk and correlation of risk. In contrast, the returns on natural assets and liabilities require many other adjustments arising from stock-related returns and depreciation that endogenously depend on both stocks and controls, including interactions among these variables. This means ecosystem portfolio analysis extends beyond the consideration of uncertainty and involves understanding complex economic–ecological tradeoffs, even in a deterministic setting. We use capital theory in the context of a deterministic bioeconomic model of valuable wildlife, livestock, and a pathogen that can be passed between them to develop a portfolio balancing approach to understanding the tradeoffs associated with ecosystem management. This specific ecosystem is highly relevant to conservation, health, and livestock agriculture. Within the context of this example, we also explore issues of mitigation and adaptation to disease risks, and the management implications of cross-species transmission. A final contribution is to examine how exports and infection risks influence the ecological thresholds that epidemiologists often focus on to guide disease management. Natural capital, Portfolio, Economic-epidemiology, Ecosystem services 3 2018 70 7 6 Environmental and Resource Economics 673 689 Q2 Q57 http://link.springer.com/10.1007/s10640-017-0161-4 text/html Abstract Richard D. Horan horan@msu.edu Michigan State University Eli P. Fenichel eli.fenichel@yale.edu Yale University David Finnoff finnoff@uwyo.edu University of Wyoming Carson Reeling carson.reeling@gmail.com Western Michigan University
oai:RePEc:kap:enreec:v:70:y:2018:i:3:d:10.1007_s10640-017-0142-72018-06-29RePEc:kap:enreec
article The Allocation of Time and Risk of Lyme: A Case of Ecosystem Service Income and Substitution Effects Abstract Forests are often touted for their ecosystem services, including outdoor recreation. Historically forests were a source of danger and were avoided. Forests continue to be reservoirs for infectious diseases and their vectors—a disservice. We examine how this disservice undermines the potential recreational services by measuring the human response to environmental risk using exogenous variation in the risk of contracting Lyme Disease. We find evidence that individuals substitute away from spending time outdoors when there is greater risk of Lyme Disease infection. On average individuals spent 1.54 fewer minutes per day outdoors at the average, 72 U.S. Centers for Disease Control and Prevention, confirmed cases of Lyme Disease. We estimate lost outdoor recreation of 9.41 h per year per person in an average county in the Northeastern United States and an aggregate welfare loss on the order $2.8 billion to $5.0 billion per year. Adaptation, Resource allocation, Risk, Economic-Epidemiology, American Time Use Survey (ATUS), Travel cost 3 2018 70 7 4 Environmental and Resource Economics 631 650 http://link.springer.com/10.1007/s10640-017-0142-7 text/html Abstract Kevin Berry kberry13@alaska.edu University of Alaska Anchorage Yale School of Forestry & Environmental Studies Jude Bayham California State University, Chico Spencer R. Meyer Highstead Foundation Eli P. Fenichel Yale School of Forestry & Environmental Studies
oai:RePEc:kap:enreec:v:70:y:2018:i:2:d:10.1007_s10640-017-0130-y2018-06-07RePEc:kap:enreec
article Differentiated Carbon Prices and the Economic Cost of Decarbonization Abstract Employing a numerical general equilibrium model with multiple fuels, end-use sectors, heterogeneous households, and transport externalities, this paper examines three motives for differentiated carbon pricing in the context of Swiss climate policy: fiscal interactions with the existing tax code, non- $$\hbox {CO}_2$$ CO 2 related transport externalities, and social equity concerns. Interaction effects with mineral oil taxes reduce carbon taxes on motor fuels and transport externalities increase them. We show that the cost-effective overall carbon tax on motor fuels should be lower than the one on thermal fuels. This is found in spite of the fact that pre-existing taxes on motor fuels are well below our estimate of the transport externality per unit of transport fuel consumption. Differentiating taxes in favor of motor fuels yields only slightly more equitable incidence effects among households, suggesting that equity considerations play a minor role when designing differentiated carbon pricing policies. Differentiated carbon taxes, Decarbonization, Fiscal interactions, Transport externalities, Heterogeneous households 2 2018 70 6 9 Environmental and Resource Economics 483 516 http://link.springer.com/10.1007/s10640-017-0130-y text/html Abstract Florian Landis landisf@ethz.ch Swiss Federal Institute of Technology (ETH) Sebastian Rausch srausch@ethz.ch Swiss Federal Institute of Technology (ETH) Joint Program on the Science and Policy of Global Change, Massachusetts Institute of Technology (MIT) Mirjam Kosch mkosch@ethz.ch Swiss Federal Institute of Technology (ETH)
oai:RePEc:kap:enreec:v:70:y:2018:i:2:d:10.1007_s10640-017-0125-82018-06-07RePEc:kap:enreec
article Marine Ecosystem Considerations and Second-Best Management Abstract We compare how the long-run distribution of fishing activities is affected in multispecies fisheries when facing different second-best control rules: (1) species-specific landing regulation, and (2) global input regulation. We show how this depends on the economic returns and on the type of ecological interaction considered. We highlight specifically that fishing effort does not necessarily increase on nontargeted species and decrease on targeted species, and that the characterization of second-best efficient instruments may differ drastically depending on the nature of the interaction. Second-best management, Bioeconomic models, Effort distribution, Multispecies fisheries, Biological interactions 2 2018 70 6 5 Environmental and Resource Economics 381 401 Q22 Q28 http://link.springer.com/10.1007/s10640-017-0125-8 text/html Abstract N. Quérou querou@supagro.inra.fr Univ. Montpellier, UPVM3 A. Tomini agnes.tomini@univ-amu.fr AMSE, Aix-Marseille University, AMSE GREQAM
oai:RePEc:kap:enreec:v:70:y:2018:i:2:d:10.1007_s10640-017-0132-92018-06-07RePEc:kap:enreec
article What is an Unregulated and Potentially Misleading Label Worth? The case of “Natural”-Labelled Groceries Abstract Motivated by a multitude of lawsuits and considerable public policy debate in the U.S., this study provides insight on the demand effects for an unregulated and potentially misleading phrase found on many grocery labels: “all natural”, and its common variations. Using a targeted sample of adult grocery shoppers, we employ an incentive-compatible approach to elicit the willingness to pay for a variety of “natural”-labelled food products, along with their counterfactual, standard-labelled counterparts. We find that consumers are willing to pay 20% more on average for “natural” products. Using elicited information on consumer beliefs, we find that this premium decreases when “natural” signals no artificial flavors or preservatives, and increases when consumers believe that “natural” means GMO-free. Interestingly, for those indicating that the “natural” designation is meaningless, they are willing to pay about one-third less for products labelled this way. Natural food labels, Genetically modified organisms, Consumer fraud protection, Framed field experiment 2 2018 70 6 11 Environmental and Resource Economics 545 564 K41 D12 D18 C91 Q18 http://link.springer.com/10.1007/s10640-017-0132-9 text/html Abstract Julianna M. Butler butlerj@udel.edu University of Delaware Christian A. Vossler cvossler@utk.edu University of Tennessee
oai:RePEc:kap:enreec:v:70:y:2018:i:2:d:10.1007_s10640-017-0127-62018-06-07RePEc:kap:enreec
article Optimal Spatial-Dynamic Management of Stochastic Species Invasions Abstract Recent analyses demonstrate that the spatial–temporal behavior of invasive species requires optimal management decisions over space and time. From a spatial perspective, this bioeconomic optimization model broadens away from invasive species spread at a frontier or to neighbors by examining short and long-distance dispersal, directionality in spread, and network geometry. In terms of uncertainty and dynamics, this framework incorporates several sources of stochasticity, decisions with multi-year implications, and temporal ecological processes. This paper employs a unique Markov decision process planning algorithm and a Monte Carlo simulation of the stochastic system to explore the spatial-dynamic optimal policy for a river network facing a bioinvasion, with Tamarisk as an example. In addition to exploring the spatial, stochastic, and dynamic aspects of management of invasions, the results demonstrate how the interaction of spatial and multi-period processes contributes to finding the optimal policy. Those interactions prove critical in determining the right management tool, in the right location, at the right time, which informs the management implications drawn from simpler frameworks. In particular, as compared to other modeling framework’s policy prescriptions, the framework here finds more use of the management tool restoration and more management in highly connected locations, which leads to a less invaded system over time. Bioeconomic model, Bioinvasion, Dispersal, Invasive species, Network, Restoration, Optimization, River, Spatial-dynamic processes, Stochastic, Public bad 2 2018 70 6 6 Environmental and Resource Economics 403 427 http://link.springer.com/10.1007/s10640-017-0127-6 text/html Abstract Kim Meyer Hall KIM.HALL@OREGONSTATE.EDU Oregon State University Heidi J. Albers JO.ALBERS@UWYO.EDU University of Wyoming Majid Alkaee Taleghan ALKAEE@EECS.OREGONSTATE.EDU Oregon State University Thomas G. Dietterich TGD@EECS.OREGONSTATE.EDU Oregon State University
oai:RePEc:kap:enreec:v:70:y:2018:i:2:d:10.1007_s10640-017-0121-z2018-06-07RePEc:kap:enreec
article Voluntary Cleanup Programs for Brownfield Sites: A Theoretical Analysis Abstract Delays in cleaning up contaminated “brownfield” sites have led many states to adopt voluntary cleanup programs (VCPs), but the incentives they create remain poorly understood. We present the first theoretical model of VCPs, motivating it from a review of their institutional background, and the limited empirical literature on their effects. We show that tort liability alone leads to excessive development and insufficient risk mitigation, motivating the creation of mandatory cleanup programs (MCPs). We then show that MCPs with budget constraints lead to insufficient development and excessive risk mitigation, motivating the creation of VCPs. We analyze both the effect of VCPs on the extensive margin (whether a site is developed or not) and the intensive margin (mitigation level). VCPs do not increase mitigation efforts at all sites, but do increase the number of contaminated sites that are remediated and redeveloped. If designed properly they can induce highly-contaminated sites that are unknown to regulatory authorities to come forward to join the VCP. Brownfields, Voluntary cleanup programs, Law and economics, Negotiated agreements 2 2018 70 6 1 Environmental and Resource Economics 297 322 http://link.springer.com/10.1007/s10640-017-0121-z text/html Abstract Thomas P. Lyon tplyon@umich.edu University of Michigan Haitao Yin haitao.yin@gmail.com Shanghai Jiao Tong University Allen Blackman blackman@rff.org Resources for the Future Kris Wernstedt krisw@vt.edu Virginia Tech
oai:RePEc:kap:enreec:v:70:y:2018:i:2:d:10.1007_s10640-017-0128-52018-06-07RePEc:kap:enreec
article Environmental Regulation and Sustainable Competitiveness: Evaluating the Role of Firm-Level Green Investments in the Context of the Porter Hypothesis Abstract We investigate the impact of environmental regulation on firm performance and investment behavior. Exploiting the case of a German water withdrawal regulation that is managed on the state level, we analyze firms’ reactions to an increase in the water tax using a regression-adjusted difference-in-differences approach. We analyze the individual firm’s response to a change in environmental regulation, distinguishing between add-on and integrated environmental investments. This allows us to include innovation diffusion into our analysis, which is likely to be of importance for increasing resource-efficiency. Our results show that the regulation in question shows no sign of affecting firms’ overall competitiveness. The results imply that the predicted negative impact of the regulation on firms’ economic performance that was brought up before the introduction of the tax, does not seem to weigh heavily in this case. Nevertheless, when placed into a sustainable competitiveness context, the regulation considered does not qualify as an appropriate policy tool for fostering green growth. Environmental regulation, DID, Green growth, Green investment, Porter hypothesis, Sustainable competitiveness, Water withdrawal regulation 2 2018 70 6 7 Environmental and Resource Economics 429 455 L60 O31 O32 Q58 Q55 http://link.springer.com/10.1007/s10640-017-0128-5 text/html Abstract Jana Stoever stoever@hwwi.org Hamburg Institute of International Economics Hamburg University John P. Weche john.weche@monopolkommission.bund.de Monopolies Commission Leuphana University Lüneburg
oai:RePEc:kap:enreec:v:70:y:2018:i:2:d:10.1007_s10640-017-0122-y2018-06-07RePEc:kap:enreec
article Windows of Opportunity for Sustainable Fisheries Management: The Case of Eastern Baltic Cod Abstract We study under which conditions a ‘window of opportunity’ for a change from an overfishing situation, with high fishing effort, but low stocks and catches, towards sustainable fishery management arises. Studying the Eastern Baltic cod fishery we show that at very low stock sizes (as they prevailed in the early 2000s) all interest groups involved in the fishery unanimously prefer maximum-sustainable-yield management (as prescribed by the management plan in place since 2007) over the previous overfishing situation. With increasing stock sizes, the present value of fishermen surplus would be higher when switching back to overfishing again, while other interest groups maintain their preference for sustainable fishery management. Sustainable resource use, Fisheries economics, Resource rent, Consumer surplus, Worker surplus 2 2018 70 6 2 Environmental and Resource Economics 323 341 Q22 Q28 http://link.springer.com/10.1007/s10640-017-0122-y text/html Abstract Martin F. Quaas quaas@economics.uni-kiel.de Christian-Albrechts-Universität zu Kiel Max T. Stoeven Christian-Albrechts-Universität zu Kiel Bernd Klauer Helmholtz Centre for Environmental Research - UFZ Thomas Petersen Helmholtz Centre for Environmental Research - UFZ Johannes Schiller Helmholtz Centre for Environmental Research - UFZ
oai:RePEc:kap:enreec:v:70:y:2018:i:2:d:10.1007_s10640-017-0131-x2018-06-07RePEc:kap:enreec
article Does Daylight Savings Time Save Energy? Evidence from Ontario Abstract Daylight savings time was adopted for the purposes of reducing energy consumption, but recent studies have cast some doubt on whether it still serves this purpose effectively. This study estimates the effect of daylight savings time on electricity demand in Ontario, Canada. It uses a quasi-experimental approach, by leveraging the fact that the transition to DST occurs on a different day in each year. The results suggest that daylight savings time reduces the demand for electricity by about 1.5% in Ontario. The reductions in electricity consumption is concentrated during the evening period. The reduction in electricity demand appears to persist for at least several weeks following the transition to daylight savings time. Daylight savings time, Energy demand, Natural experiment 2 2018 70 6 10 Environmental and Resource Economics 517 543 http://link.springer.com/10.1007/s10640-017-0131-x text/html Abstract Nicholas Rivers nrivers@uottawa.ca University of Ottawa Faculty of Social Science
oai:RePEc:kap:enreec:v:70:y:2018:i:2:d:10.1007_s10640-017-0123-x2018-06-07RePEc:kap:enreec
article Climate Negotiations in the Lab: A Threshold Public Goods Game with Heterogeneous Contributions Costs and Non-binding Voting Abstract We model the climate negotiations and the countries’ individual commitments to carbon dioxide reductions as a threshold public goods game with uncertain threshold value. We find that a non-binding unanimous voting procedure on contribution vectors leads to frequent agreement on an optimal total contribution and high rates of compliance, even in the case of heterogeneous marginal contribution costs. However, groups that do not reach agreement perform worse than the baseline treatments without a voting procedure. The contribution vectors chosen by the groups point to a predominant burden-sharing rule that equalizes individual contribution costs, even at the cost of the group’s total payoff. Burden sharing, Climate change, Heterogeneity, Threshold public good, Threshold uncertainty, Unanimous voting 2 2018 70 6 3 Environmental and Resource Economics 343 362 http://link.springer.com/10.1007/s10640-017-0123-x text/html Abstract Christian Feige christian.feige@o2mail.de Institute of Economics (ECON) Karl-Martin Ehrhart ehrhart@kit.edu Institute of Economics (ECON) Jan Krämer jan.kraemer@uni-passau.de University of Passau
oai:RePEc:kap:enreec:v:70:y:2018:i:2:d:10.1007_s10640-017-0124-92018-06-07RePEc:kap:enreec
article The Effects of Communication on the Partnership Solution to the Commons Abstract Organizing individual appropriators into output sharing groups has been found to effectively solve the tragedy of the commons problem. We experimentally investigate the robustness of this solution by introducing different channels of communication that naturally arise from group competitions. In the absence of communication, we confirm that output sharing can introduce sufficient free riding to offset over-harvesting and results in full efficiency. Allowing local communication within output-sharing groups substantially decreases this efficiency enhancement because it reduces free riding and boosts between-group competition. Yet the efficiency level is still significantly higher than that achieved when global communication is allowed among all appropriators in a conventional common pool resource without output sharing. The efficiency-reducing effect of local communication is mitigated when random partners instead of fixed partners are sharing output over time, and is nearly eliminated when random partners are formed with users who belong to different communication groups. Common pool resources, Output sharing, Partnership solution, Communication, Competition, Group behavior, Partners and strangers, Experiments 2 2018 70 6 4 Environmental and Resource Economics 363 380 Q20 C92 C72 http://link.springer.com/10.1007/s10640-017-0124-9 text/html Abstract Neil J. Buckley nbuckley@yorku.ca York University Stuart Mestelman mestelma@mcmaster.ca McMaster University R. Andrew Muller muller.ra@gmail.com McMaster University Stephan Schott stephan.schott@carleton.ca Carleton University Jingjing Zhang zhang148@gmail.com University of Technology Sydney
oai:RePEc:kap:enreec:v:70:y:2018:i:2:d:10.1007_s10640-017-0129-42018-06-07RePEc:kap:enreec
article Cooperation and Subgame Perfect Equilibria in Global Pollution Problems with Critical Threshold Abstract The paper examines the issue of international pollution control under a dynamic framework involving heterogeneous countries and a critical threshold. We propose an appealing specification for this type of problem, and its novelty is illustrated by the fact that countries use linear strategies in equilibrium, although their utility and damage functions are highly convex. The stock of pollution under cooperation is always lower. Surprisingly, emissions are always higher in distant periods under the cooperative scenario; and we show through examples that this is a significant finding rather than some marginal effect. It is also shown that the efficient allocation of pollution abatement is driven only by the respective technologies of the countries. Finally, a dynamic transfer scheme allowing to implement the cooperative solution is proposed. Global pollution, Asymmetry, Markov perfect equilibrium, cooperation, Transfers 2 2018 70 6 8 Environmental and Resource Economics 457 481 C73 Q54 H87 http://link.springer.com/10.1007/s10640-017-0129-4 text/html Abstract Eric Bahel erbahel@vt.edu Virginia Polytechnic Institute and State University
oai:RePEc:kap:enreec:v:67:y:2017:i:4:d:10.1007_s10640-016-0008-42021-05-13RePEc:kap:enreec
article Optimizing the Harvest Timing in Continuous Cover Forestry Abstract We analyze continuous cover or uneven-aged forest management with optimized harvest timing. The analysis is based on an economic description of uneven-aged forestry using a size-structured transition matrix model. In discrete time with fixed harvesting costs, optimizing harvest timing requires solving of a vector of integer variables in addition to the usual number of harvested trees. This mixed integer problem is solved using bilevel optimization, where the times of harvest are solved by a hill-climbing algorithm, and harvest intensities by a gradient-based interior point algorithm. Optimizing the integer harvest timing variables is crucial especially when the initial stand is an outcome of a plantation type of even-aged management and the forest owner prefers to continue forestry without clearcuts. Optimal harvest timing is shown to depend strongly on a fixed cost level, initial stand state, and interest rate. A steady state harvesting interval is typically 10–25 years, however, during transition it may be as long as 55 years. Increasing the interest rate decreases the average steady state capital value of the stand but may cause the steady state harvest frequency to decrease or increase due to flexibility in targeting harvests to different tree size classes. It appears that the legal limitations both in Sweden and Finland are constraining the optimal solutions. Uneven-aged forestry, Bilevel optimization, Mixed integer optimization, Optimal harvesting, Transition matrix model, Fixed entry cost 4 2017 67 8 9 Environmental and Resource Economics 853 868 http://link.springer.com/10.1007/s10640-016-0008-4 text/html Abstract Janne Rämö janne.ramo@helsinki.fi University of Helsinki Olli Tahvonen olli.tahvonen@helsinki.fi University of Helsinki
oai:RePEc:kap:enreec:v:67:y:2017:i:4:d:10.1007_s10640-016-0011-92021-05-13RePEc:kap:enreec
article The Silence of the Lambs: Payment for Carnivore Conservation and Livestock Farming Under Strategic Behavior Abstract During the last few decades, the number of large carnivores (wolf, bear, lynx and wolverines) has increased significantly in Scandinavia. As a result of more predation of livestock, conflicts with livestock farmers have deepened. We model this conflict using sheep farming as an example, and in instances in which farmers are given compensation for the predation loss. The compensation scheme is composed of a fixed per animal loss value (ex-post), but also a compensation just for the presence of the carnivores (ex-ante). Ex-post compensation payment is practiced in many countries where farmers are affected by killed and injured livestock, but also damages to crops. Ex-ante payment implies payment for environmental services and is also widely practiced. In the first part of the paper, the stocking decision of a group of farmers is analyzed. In a next step, the Directorate for Natural Resource Management (DNRM), managing the carnivores and compensation scheme, is introduced. The strategic interaction between the sheep farmers and DNRM is modelled as a Stackelberg game with DNRM as the leader. We find that it is not beneficial for DNRM to use ex-post, but only ex-ante compensation. The solution to the game is compared to the social planner solution, and numerical illustrations indicate that the efficiency loss of the ex-ante compensation scheme to be small. Carnivore conservation, Sheep farming, Compensation, Stackelberg game 4 2017 67 8 12 Environmental and Resource Economics 905 923 Q20 Q18 http://link.springer.com/10.1007/s10640-016-0011-9 text/html Abstract Anders Skonhoft Anders.skonhoft@svt.ntnu.no Norwegian University of Science and Technology
oai:RePEc:kap:enreec:v:67:y:2017:i:4:d:10.1007_s10640-016-0006-62021-05-13RePEc:kap:enreec
article Escape from Third-Best: Rating Emissions for Intensity Standards Abstract An increasingly common type of environmental policy instrument regulates the carbon intensity of transportation and electricity markets. In order to extend the policy’s scope beyond point-of-use emissions, regulators assign each potential fuel an emission intensity rating for use in calculating compliance. I show that welfare-maximizing ratings do not generally coincide with the best estimates of actual emissions. In fact, the regulator can achieve a higher level of welfare by properly selecting the emission ratings than possible by selecting only the level of the standard. Moreover, a fuel’s optimal rating can actually decrease when its estimated emission intensity increases. Numerical simulations of the California Low-Carbon Fuel Standard suggest that when recent scientific information increased the estimated emissions from conventional ethanol, regulators should have lowered ethanol’s rating (making it appear less emission-intensive) so that the fuel market would clear with a lower quantity. Externality, Emission, Intensity, Rating, Second-best, Ethanol 4 2017 67 8 7 Environmental and Resource Economics 789 821 H23 Q42 Q58 http://link.springer.com/10.1007/s10640-016-0006-6 text/html Abstract Derek Lemoine dlemoine@email.arizona.edu University of Arizona
oai:RePEc:kap:enreec:v:67:y:2017:i:4:d:10.1007_s10640-016-0010-x2021-05-13RePEc:kap:enreec
article Pollution Control Under Uncertainty and Sustainability Concern Abstract We analyze the implications of environmental policy on pollution in a stochastic framework with finite horizon and sustainability concern. The social planner seeks to minimize the social (environmental and economic) costs associated with pollution. We allow for the planner to attach different relative weights to the discounted and end-of-planning-horizon costs in order to assess how sustainability concern might affect the optimal level of policy intervention. We show that the optimal environmental policy increases with the degree of sustainability concern, reducing thus the amount of pollution the society is forced to bear. A calibration based on world $$\textit{CO}_2$$ CO 2 data supports our conclusions, further highlighting the importance of higher degrees of sustainability concern to achieve greener long run outcomes. It also allows us to show that under a realistic model’s parametrization the optimal environmental policy tends to rise with higher degrees of uncertainty in a precautionary manner. Pollution control, Economic policy, Uncertainty, Sustainability 4 2017 67 8 11 Environmental and Resource Economics 885 903 H23 Q28 http://link.springer.com/10.1007/s10640-016-0010-x text/html Abstract Davide Torre davide.latorre@unimi.it davide.latorre@kustar.ac.ae University of Milan Khalifa University Danilo Liuzzi danilo.liuzzi@unimi.it Khalifa University Simone Marsiglio simonem@uow.edu.au University of Wollongong
oai:RePEc:kap:enreec:v:67:y:2017:i:4:d:10.1007_s10640-015-9992-z2021-05-13RePEc:kap:enreec
article Why are Fishers not Enforcing Their Marine User Rights? Abstract Over-fishing is a global problem that damages the marine environment and compromises the long-term sustainability of fisheries. This damage can be mitigated by restricting catch or other activities which can occur in marine areas. However, such management is only effective when restrictions are enforced to ensure compliance. We expect fishers to help enforce restrictions when they have exclusive user rights and can capture the benefits of management. In a number of such cases, however, fisher participation in the enforcement of user rights is absent. In this analysis we used central Chile as a case-study to investigate why some fishers may not participate in enforcement even when they have exclusive territorial user rights for fisheries. We used a best-worst scaling survey to assess why fishers would choose not to participate in enforcement through monitoring their TURF management areas, and what would help to increase their participation. We found that the main reason fishers may not monitor is because they consider government policing of marine areas and punishment of poachers to be ineffective. Increased and timely responsiveness by government when poachers are detected and more stringent penalisation of poachers may lead to greater involvement in enforcement by fishers. Best-worst scaling, Chile, Marine management, Monitoring, Small-scale fisheries, TURFs 4 2017 67 8 2 Environmental and Resource Economics 661 681 http://link.springer.com/10.1007/s10640-015-9992-z text/html Abstract Katrina J Davis katrina.davis@uwa.edu.au University of Western Australia University of Queensland Marit E Kragt University of Western Australia Stefan Gelcich Pontificia Universidad Católica de Chile University of California Santa Barbara Michael Burton University of Western Australia Steven Schilizzi University of Western Australia David J Pannell University of Western Australia
oai:RePEc:kap:enreec:v:67:y:2017:i:4:d:10.1007_s10640-015-9995-92021-05-13RePEc:kap:enreec
article The Spillover Effects of Good Governance in a Tax Competition Framework with a Negative Environmental Externality Abstract We investigate the impact of a political regime shift affecting consumers, business interests and lobby contributions when countries engage in tax competition in capital and a polluting resource. When consumers have more influence than resource owners, the resource tax rate and public spending rise while environmental damages, lobbying contribution, and the capital tax rate fall. This response can spillover to other countries leading to lower welfare. Capital tax harmonization improves welfare of consumers and resource owners. Resource tax harmonization and governance harmonization both reduce the influence of lobbying and improve consumer welfare but resource owners are worse off. Lobbying, Environmental damage, Tax competition, Spillovers 4 2017 67 8 4 Environmental and Resource Economics 701 724 H23 D73 http://link.springer.com/10.1007/s10640-015-9995-9 text/html Abstract Raymond G. Batina rgb@wsu.edu Washington State University Gregmar I. Galinato ggalinato@wsu.edu Washington State University
oai:RePEc:kap:enreec:v:67:y:2017:i:4:d:10.1007_s10640-016-0004-82021-05-13RePEc:kap:enreec
article Decentralized Management Hinders Coastal Climate Adaptation: The Spatial-dynamics of Beach Nourishment Abstract Climate change threatens to alter coastline erosion patterns in space and time and coastal communities adapt to these threats with decentralized shoreline stabilization measures. We model interactions between two neighboring towns, and explore welfare implications of spatial-dynamic feedbacks in the coastal zone. When communities are adjacent, the community with a wider beach loses sand to the community with a narrower beach through alongshore sediment transport. Spatial-dynamic feedbacks create incentives for both communities to nourish less, resulting in lower long-run beach width and lower property values in both communities, a result that parallels the classic prisoner’s dilemma. Intensifying erosion—consistent with accelerating sea level rise—increases the losses from failure to coordinate. Higher erosion also increases inequality in the distribution of benefits across communities under spatially coordinated management. This disincentive to coordinate suggests the need for higher-level government intervention to address a traditionally local problem. We show that a spatially targeted subsidy can achieve the first best outcome, and explore conditions under which a second-best uniform subsidy leads to small or large losses. Beach nourishment, Climate adaptation, Sea level rise, Spatial-dynamic feedbacks 4 2017 67 8 6 Environmental and Resource Economics 761 787 http://link.springer.com/10.1007/s10640-016-0004-8 text/html Abstract Sathya Gopalakrishnan gopalakrishnan.27@osu.edu The Ohio State University Dylan McNamara UNC Wilmington Martin D. Smith Duke University A. Brad Murray Duke University
oai:RePEc:kap:enreec:v:67:y:2017:i:4:d:10.1007_s10640-016-0007-52021-05-13RePEc:kap:enreec
article GHG Emissions Control and Monetary Policy Abstract This paper examines the optimal environmental and monetary policy mix in a New Keynesian model embodying pollutant emissions, abatement technology and environmental damage. The optimal response of the economy to productivity shocks is shown to depend crucially on the instruments policy makers have available, the intensity of the distortions they have to address (i.e. imperfect competition, costly price adjustment and negative environmental externality) and the way they interact. GHG emissions control policy, Monetary policy, Ramsey problem 4 2017 67 8 8 Environmental and Resource Economics 823 851 Q58 E32 E52 http://link.springer.com/10.1007/s10640-016-0007-5 text/html Abstract Barbara Annicchiarico barbara.annicchiarico@uniroma2.it Università di Roma Tor Vergata Fabio Di Dio fdidio@sogei.it Sogei S.p.A.
oai:RePEc:kap:enreec:v:67:y:2017:i:4:d:10.1007_s10640-016-0009-32021-05-13RePEc:kap:enreec
article Persistence, Mean-Reversion and Non-linearities in $$\hbox {CO2}$$ CO2 Emissions: Evidence from the BRICS and G7 Countries Abstract This study examines the time-series behaviour of $$\hbox {CO}_{2}$$ CO 2 emissions within a long-memory approach with non-linear trends and structural breaks, using a long span of data for the BRICS and G7 countries. The main results show significant differences both in the degree of integration and the non-linearities among the analysed countries. Thus, in most of the cases, the $$\hbox {CO}_{2}$$ CO 2 emissions series display orders of integration equal to or higher than 1, implying that there are permanent effects of shocks for $$\hbox {CO}_{2}$$ CO 2 emissions. The only exceptions are Germany, the US and the UK, where shocks will have transitory effects. With respect to the non-linearities, more evidence of non-linear behaviour was obtained for the G7 countries, especially in the cases of the US, the UK, Germany and France. Partial evidence was also found in Canada and India. The significantly different results obtained for emerging and developed economies have important policy implications. $$\hbox {CO}_{2}$$ CO 2 emission, Long memory, Non-linear trends 4 2017 67 8 10 Environmental and Resource Economics 869 883 C22 C32 Q28 Q50 http://link.springer.com/10.1007/s10640-016-0009-3 text/html Abstract Luis A. Gil-Alana alana@unav.es University of Navarra Juncal Cunado jcunado@unav.es University of Navarra Rangan Gupta Rangan.Gupta@up.ac.za University of Pretoria
oai:RePEc:kap:enreec:v:67:y:2017:i:4:d:10.1007_s10640-016-0012-82021-05-13RePEc:kap:enreec
article Feed-in Subsidies, Taxation, and Inefficient Entry Abstract We study (energy) markets with dirty production and lumpy entry costs of clean production (renewables). For intermediate entry costs, markets yield inefficient production and inefficient entry. A mix of three popular regulatory instruments—polluter taxation, feed-in subsidies for renewables, and consumption taxation—cannot correct these market failures for larger entry costs. The instruments are imperfect because they affect marginal incentives, whereas entry is a lumpy fixed cost problem. Whenever the first best is implementable, feed-in subsidies and consumption taxes are redundant. The second best requires feed-in subsidies or consumption taxes in addition to a pollution tax and overshoots first best levels. Given production levels, the instruments do not affect the regulator’s budget. Taxation, Feed-in tariffs, Externalities, Renewables, Entry, Pollution 4 2017 67 8 13 Environmental and Resource Economics 925 940 D21 D61 H23 http://link.springer.com/10.1007/s10640-016-0012-8 text/html Abstract Fabio Antoniou fabio.antoniou@wiwi.hu-berlin.de Humboldt-Universität zu Berlin Roland Strausz strauszr@wiwi.hu-berlin.de Humboldt-Universität zu Berlin
oai:RePEc:kap:enreec:v:67:y:2017:i:4:d:10.1007_s10640-015-9991-02021-05-13RePEc:kap:enreec
article Greenhouse-Gas Emission Controls and Firm Locations in North–South Trade Abstract This paper studies greenhouse-gas emission (GHG) controls in the presence of international carbon leakage through international firm relocation. In a new economic geography model with two countries (‘North’ and ‘South’), only North sets a target for GHG emissions. We compare the consequences of emission quotas and emission taxes under trade liberalization on location of two manufacturing sectors with different emission intensities and degrees of carbon leakage. With low trade costs, further trade liberalization increases global emissions by facilitating carbon leakage. Regulation by quotas leads to spatial sorting, resulting in less carbon leakage and less global emissions than regulation by taxes. Global warming, Emission tax, Emission quota, Carbon leakage, Firm relocation, Trade liberalization 4 2017 67 8 1 Environmental and Resource Economics 637 660 F18 Q54 http://link.springer.com/10.1007/s10640-015-9991-0 text/html Abstract Jota Ishikawa jota@econ.hit-u.ac.jp Hitotsubashi University RIETI Toshihiro Okubo okubo@econ.keio.ac.jp Keio University
oai:RePEc:kap:enreec:v:67:y:2017:i:4:d:10.1007_s10640-015-9994-x2021-05-13RePEc:kap:enreec
article The Causal Factors of International Inequality in $$\hbox {CO}_{2}$$ CO 2 Emissions Per Capita: A Regression-Based Inequality Decomposition Analysis Abstract This paper uses the possibilities provided by the regression-based inequality decomposition (Fields in Res Labor Econ 22:1–38, 2003) to explore the contribution of different explanatory factors to international inequality in $$\hbox {CO}_{2}$$ CO 2 emissions per capita. In contrast to previous emissions inequality decompositions, which were based on identity relationships, this methodology does not impose any a priori specific relationship. Thus, it allows an assessment of the contribution to inequality of different relevant variables. In short, the paper appraises the relative contributions of affluence, sectoral composition, demographic factors and climate. The analysis is applied to selected years of the period 1993–2007. The results show the important (though decreasing) share of the contribution of demographic factors, as well as a significant contribution of affluence and sectoral composition. $$\hbox {CO}_{2}$$ CO 2 emissions, International emissions inequality, Regression-based decomposition 4 2017 67 8 3 Environmental and Resource Economics 683 700 C19 D39 Q43 http://link.springer.com/10.1007/s10640-015-9994-x text/html Abstract Juan Antonio Duro juanantonio.duro@urv.cat Universitat Rovira i Virgili Jordi Teixidó-Figueras jordijosep.teixido@urv.cat Universitat Rovira i Virgili Emilio Padilla emilio.padilla@uab.es Univ. Autónoma de Barcelona
tail1_set_RePEc:kap:enreec_amf