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In: Edward Elgar E-Book Archive
In: New horizons in environmental economics
1. A reconsideration of environmental federalism / Wallace E. Oates -- 2. Global environmental governance, political lobbying and transboundary pollution / Surjinder Johal and Alistair Ulph -- 3. Endogenous transfrontier pollution / Michael Rauscher -- 4. Allocating greenhouse gas emissions among countries with mobile populations / Michael Hoel -- 5. Environmental regulation and international trade : a general equilibrium approach / Chris Elbers and Cees Withagen -- 6. The ups and downs of the environmental Kuznets curve / Arik Levinson -- 7. Participation in industry-wide voluntary approaches : short-run vs. long-run equilibrium / Na Li Dawson and Kathleen Segerson -- 8. Irreversible development of a natural resource : management rules and policy issues when direct use values and environmental values are uncertain / Anastasios Xepapadeas -- 9. A model of neighbourhood conditions and internal household environments / Mark Agee and Thomas Crocker -- 10. Environmental policy and the timing of drilling and production in the oil and gas industry / Mitch Kunce, Shelby Gerking and William Morgan -- 11. Using flexible scenarios in benefit estimation : an application to the cluster rule and the pulp and paper industry / Susan Kask ... [et al.] -- 12. Trade-off at the trough : TMDLs and the evolving status of US water quality policy / Carol Mansfield and V. Kerry Smith -- 13. Heterogeneous preferences and complex environmental goods : the case of ecosystem restoration / J. Walter Milon and David Scrogin -- 14. Incentives in public goods experiments : implications for the environment / Jacob Goeree -- Charles Holt and Susan Laury -- 15. An experimental test for options value : relevance for contingent valuation elicitation / David Bjornstad ... [et al.] -- 16. Is the scope test meaningful in the presence of other-regarding behaviour? / William Schulze ... [et al.].
In: Elgar research agendas
Presenting critical insights on how economic activity is constrained by the environment's ability to provide material and energy resources, this timely Research Agenda explores how humanity shapes, and is shaped by, environmental change and sustainability challenges. Chapters highlight how, under these constraints, people may seek to improve their lives and standards of living without undermining the abilities of others to do so now or in the future. With contributions from top economic scholars, as well as from a range of other disciplines including ethics, law, and the physical and life sciences, this book explores how interdisciplinary insights can be integrated to provide meaningful investment and policy advice. Offering diverse understandings of the topic from both the Global North and South, this Research Agenda challenges previous economic conceptualizations of human-environment interactions, exploring resource use and environmental impact from micro- and macro-economic perspectives. Students of environmental and ecological economics will find this to be a thought-provoking and stimulating read. The suggestions for future research and use of clear case studies will also prove valuable for environmental law and ethics scholars, as well as environmental policy makers. --
In: Dynamic Modeling and Econometrics in Economics and Finance 15
The book presents new developments in the dynamic modeling and optimization methods in environmental economics and provides a huge range of applications dealing with the economics of natural resources, the impacts of climate change and of environmental pollution, and respective policy measures. The interrelationship between economic activities and environmental quality, the development of cleaner technologies, the switch from fossil to renewable resources and the proper use of policy instruments play an important role along the path towards a sustainable future. Biological, physical and economic processes are naturally involved in the subject, and postulate the main modelling, simulation and decision-making tools: the methods of dynamic optimization and dynamic games
My dissertation is comprised of three separate essays in the field of environmental economics. The first chapter experimentally models the climate change social dilemma and evaluates how heterogeneous environmental impacts and unequal endowments affect the propensity to avoid catastrophic climate change. Introducing a punishment mechanism to alleviate the collective bargaining problem, I identify the external factors and intrinsic preferences that impede cooperation. Inequality and delayed contributions negatively affect successful provision, while higher levels of collective-risk increase the probability of threshold attainment. A consensual punishment mechanism incentivizes cooperation in low-risk and heterogeneous groups, overcoming the collective action problem.The second chapter investigates the efficacy of military and legal efforts to thwart environmental domestic terrorism. While passive legislative interventions increase the cost of illegal action and proactive policies thwart terrorism with preemptive strikes, the efficacy of counterterrorism efforts has been questioned. Using quarterly data from 1980 to 2014, I analyze the effect of counterterrorism policy on radical environmental direct action (REDA) modes of attack and the severity of illegal actions. Combining vector autoregression and intervention analysis under a rational choice framework, I find that while legislative policies have decreased the economic severity of attacks, incidents have more than doubled. Proactive interventions reduce domestic terrorism, but by a smaller magnitude than the increase from passive legislation. Substituting between modes of attack and ideological targets, policies have tripled the use of explosives while REDA attacks against people have increased more than sixfold in the long run.In the final chapter, I explore the role of payments for ecosystem services (PES) and their impact on conservation efforts to avoid deforestation in developing nations. Targeting counterfactual-based studies to identify additionality gains and minimize leakage impacts, I perform a meta-analysis to evaluate how PES program design and market factors impact avoided deforestation. Program design variables include contract length, payment differentiation, and participation targeting. Environmental variables proxy for opportunity costs by controlling for alternative land use prices and socioeconomic conditions. As each dimension has a varying impact on avoided deforestation, these results aim to influence future market-based interventions.
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In: van den Bijgaart , I 2016 , ' Essays in environmental economics and policy ' , Doctor of Philosophy , Tilburg University , Tilburg .
The dissertation consists of five chapters in Environmental Economics and Policy. The first three chapters consider (optimal) policy in situations where multiple market failures interact, or there exist restrictions on the type or scope of policy instruments available to the policymaker. The first chapter assesses under what conditions, and what type of, unilateral policy can prevent rising global emission concentrations. The second chapter analyzes second-best optimal environmental policy responses to real and financial shocks when firms are subject to credit constraints. The third chapter explores optimal transitory tax policy when the adjustment to a new consumption bundle is slow due to habit formation and the lack of habit internalization. The last two chapters focus on the size of the environmental externality, and the evaluation of policy effectiveness respectively. The fourth chapter develops a closed-form formula to compute the social cost of carbon (SCC), which explains the parameter-driven SCC variation of a mainstream IAM without systematic bias, and allows for an analytic breakdown and quantification of how different sets of parameters contribute to the SCC distribution. The fifth and final chapter is an empirical assessment of the effect of car registration and road taxes on vehicles average CO2 emissions from new vehicles in the EU15 countries over the period 2001-2010.
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Environmental issues have large impacts on both developed and developing economies. In this dissertation, I focus on three environmental issues, assess their impacts, and evaluate the effectiveness of related remedies, using both ex-post evaluation and ex-ante forecasting methods.Using individual travel diary data collected before and after the rail transit coverage expansion in urban Beijing, the first chapter estimates the impact of rail accessibility improvement on the usage of rail transit, automobiles, buses, walking, and bicycling, measured as percent distance traveled by each mode in an individual trip. My results indicate that the average rail transit usage significantly increased, by 98.3% for commuters residing in the zones where the distances to the nearest station decreased because of the expansion, relative to commuters in the zones where the distances did not change. I also find that auto usage significantly decreased, by 19.8%, while the impact on bus usage was small and not statistically significant. Average walking and bicycling distance (combined) increased by 11.8%, indicating that walking and bicycling are complements to urban rail transit, instead of substitutes. Furthermore, I find that estimated changes in auto usage and rail transit usage vary significantly with auto ownership and income.Based on a coauthored paper with Peter Berck and Jintao Xu, the second chapter studies the collective forest tenure reform in China. In this reform, the Chinese government allowed collective village forest land to pass into individualized ownership. The government's purpose was to alleviate rural poverty, stimulate investment in forests, and improve forest conservation. Using data collected from 288 villages, in eight provinces, over three years, this chapter measures the effect of the individualization on one aspect of forest investment, forestation. Because villages voted on the reform, we identify the causal effect of the reform by an instrumental variable estimator based on the countywide decision to offer the reform package. We find an increase in forestation of 7.87% of forest land in the year of the reform, and no significant change in harvesting. It implies that the individualization of the village forestlands is on track to meet the societal goals concerning forest conditions.The third chapter is based on a coauthored paper with Sarah Lewis, Maximilian Auffhammer, and Peter Berck. In this chapter, we study crop coverage adaption to climate change. In the face of warming weather, famers may grow different crops that better fit in the new landscape. This type of adaptation may offset the negative effects of climate change. However, adaptation may be restricted by soil conditions, which determine crop yields and whether the substitution crops could fit in. The feasible amount of adaptation could be small, even in the face of substantial warming. Therefore, the negative effects of climate change can be offset only to a limited extent. In this paper, we pair a 10-year panel of satellite-based crop coverage and soil data with a fine-scale weather data set that incorporates the whole distribution of temperatures within each day and across all days in the 10-year period. Combining a proportion type model with local regressions, we simultaneously address the econometric issues of proportion dependent variables and spatial correlation of unobserved factors. Based on the estimates of crop choices, we predict future crop maps under several climate change scenarios. We find that rice and cotton spread toward the north, corn share increases, and soy share decreases on average. We also find that crop shifting patterns vary across quality levels of soils. There is less crop adaptation on better soils than on soils with lower quality.
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In: ZEW Economic Studies 31
Sustainable development, climate policy, biodiversity conservation - all these represent flash points at the intersection of environmental science, economics, and public policy. This volume offers a snapshot of environmental economic research on a range of policy-relevant problems. Academic contributions are complemented by the views of policy makers on environmental policy priorities, the usefulness of academic research for decision making, and the future of applied research.
In: New horizons in environmental economics
[eng] Fighting poverty and protecting the environment are two of the most urgent challenges facing the international community at the start of the 21st century (United Nations, 2015). One aspect that will be crucial in this challenge is aligning environmental, energy and development policy in order to create a triple dividend between the three policy fields. Additionally, integrating environmental protection policies with poverty reduction strategies is by no means a new concept, but as we continue to think about these challenges, it is important to link environmental and economic components together through a type of development that is economically feasible, socially desirable and environmentally benign. Within each of these challenges lies different possible interventions, but space must be created for public policy to be at the center of these challenges in order to generate the best available evidence and guide our decision making. This dissertation consists of three independent chapters that represent responses to these challenges, and provides empirical evidence that can guide specific policy recommendations in the fields of development economics, and environmental and resource economics. Universal access to modern energy services is central to the international sustainable development agenda. According to the International Energy Agency (2010, 2017), 1.4 billion people across the world did not have access to electricity, and 2.7 billion people still rely on traditional use of solid biomass. The international development agenda has placed an emphasis on improving access to electricity as well as made large investments in the energy sector throughout developing countries. It is argued that the universalization of access to electric energy in the world is of fundamental importance for the eradication of poverty and the reduction of social inequality (Kaygusuz, 2011). Despite the large investments made in the energy sector to increase rural electrification and the diffusion of modern cooking systems, ...
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{This thesis uses the tools of applied econometrics to study the impact of economic incentives on household welfare and decision-making and the environmental outcome of urban transportation policies in the U.S. and in developing countries.Transportation is an essential component of day-to-day life. An extensive transportation system offers mobility, expanding individuals' access to employment opportunities, agglomeration benefits to firms and employees, reduced trade costs, and an overall increase in productivity. The positive effects of an efficient transportation network in an economy are often accompanied by rising motorization rates. This, in turn, can lead to air pollution, road congestion, and increasing dependence on fossil fuels. In the past few decades, climate change concerns have made policymakers and governments agencies in both developed and developing countries incentivize improvement in fuel economy of vehicles as well as promote alternative fuel vehicles.Alternative fuel vehicles currently arriving in the market offer better driving performance compared to their predecessors, and their market penetration is higher than before. However, most people still do not consider these alternative fuel vehicles as a substitute of traditional gasoline cars. Incentives offered to consumers to promote adoption have achieved varied results. The first chapter of the dissertation studies the stated vehicle transaction decisions of 3,154 survey respondents located in the state of California. While the effectiveness of policy incentives like tax credits and rebates is found to be more universal, the effect of High Occupancy Vehicle (HOV) lane permit or free parking benefit on adoption decision depends on the likelihood of the household being able to use the benefits. In addition, familiarity with an alternative fuel technology is found to be positively correlated with the preference for electric battery or hydrogen fuel cell vehicles. Prior ownership of a hybrid vehicle made the household more likely to purchase an alternative fuel vehicle in the future. This persistence in choice behavior can be attributed to heterogeneity among vehicle purchasers or considered as a sign of positive experience. Experience can reduce skepticism about alternative fuel vehicles and induce future adoption. Accounting for the number of years of ownership of alternative fuel vehicles, the results show that more experience has a positive effect on the probability of repurchase of the same or a newer technology vehicle. This result contributes towards a long standing debate of whether the incentives work only as a marketing mechanism or does it have any long term benefits. The positive correlation in preference pattern and the willingness to pay measures indicate that even if the price-based incentives work as a marketing mechanism they play an important role in initiating potential state dependence in purchase behavior to improve adoption in the long run. In recent years, emerging economies like India and China have been experiencing the externalities related to increased motorization. Urbanization accompanied with increasing per capita income has led to a rise in private automobile demand. Historically, the infrastructure of major metropolitans in these emerging economies was not designed to support a sudden rise in the use of automobiles. As a result, a majority of these metropolitans suffer from congestion and pollution from greenhouse gas (GHG) emissions. The local government and policymakers in these economies are considering a variety of policies like to scrap old polluting vehicles, impose fuel standards, cordon tolls, and driving restrictions to address these issues. Driving restrictions has been implemented in several metropolitan cities in emerging economies like Beijing, China, Santiago, Chile, Mexico City, Mexico, S\~{a}o Paulo, Brazil, Bogot\'{a}, Colombia, and recently New Delhi, India. According to this policy, cars with license plate numbers ending with certain digits are allowed to be driven on separate days of the week. A number of studies have shown that though the license plate based policy is effective in the short run in reducing local pollutants as well as GHG emissions, it is not effective in the medium or long run. In spite of these results, it is considered more equitable compared to price-based policies like congestion tax or a cordon toll that may impose a greater financial burden on the low-income commuters. At present, there is a limited number of studies that consider the distributional effect of the policy. The second chapter on license-plate-based driving restriction policy considers the distributional effect of the policy in comparison to a cordon toll and a vehicle mile tax by analyzing the mode choice of commuters in Santiago, Chile. Analysis of different policy scenarios suggests that though the restriction has a negative distributional effect on all commuters, in the absence of a revenue recycle mechanism the effect is less adverse in comparison to a vehicle mile tax or a cordon toll for the same level of reduction in total car trips.Transportation and the power sector are the leading sources of GHG emissions in the U.S. Policies and programs trying to reduce GHG emissions from the power sector like the federal Clean Power Plan, rebates and tax credits for the adoption of rooftop photovoltaic cells, and the renewable portfolio standard incentivizes investment in renewable energy resources. The programs have increased the share of renewable resources in the grid but, utilities are finding it hard to integrate these intermittent sources of energy into the regular dispatch module. In the transportation sector, the policy focus has mostly been on encouraging adoption of electric vehicles (EV). The latter has zero tailpipe emissions but has to be connected to the grid to operate the vehicle. Electricity pricing will play a major role in dealing with this quandary. The third chapter on electricity pricing and EV charging behavior considers the environmental impact of shifting from tiered or block pricing structure to a time-of-use rate structure that matches consumption with the time-varying cost of electricity production. The results provide evidence supporting the decision to change the pricing structure as marginal emissions of carbon dioxide is lower under the time-of-use rate structure compared to the tiered pricing plan. Moreover, the analysis of emissions in each time-of-use period brings forth the importance of defining the periods such that utilities and environmentalists can maximize the benefits of EV adoption and the increasing share of renewable energy resources in the power sector.
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