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Trade in Environmental Goods, with Focus on Climate-Friendly Goods and Technologies AgEcon
Zhang, ZhongXiang.
Paragraph 31(iii) of the Doha Ministerial Declaration mandates to the liberalization of environmental goods and services. This mandate offers a good opportunity to put climate-friendly goods and services on a fast track to liberalization. Agreement on this paragraph should represent one immediate contribution that the WTO can make to fight against climate change. This paper presents the key issues surrounding the liberalization of trade in climate-friendly goods and technologies in WTO environmental goods negotiations. It begins with discussing what products to liberalize and how. Given that WTO Members are divided by this key issue, the paper explores options to move current negotiations on the liberalization of trade in environmental goods and...
Tipo: Working Paper Palavras-chave: Environmental Goods and Services; Low-Carbon Goods and Technologies; Market Access; Doha Round; WTO; Renewable Energy Technologies; Environmental Economics and Policy; F18; F13; P28; Q42; Q48; Q56; Q54; Q58; Q48.
Ano: 2011 URL: http://purl.umn.edu/119099
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Modeling the Effects of Cap and Trade and a Carbon Offset Policy on Crop Allocations and Farm Income AgEcon
Nalley, Lawton Lanier; Popp, Michael P..
A static, producer profit maximization framework is used to capture county level land use choice on the basis of profitability, greenhouse gas (GHG) emissions to the farm gate as well as soil carbon sequestration as affected by tillage and soil type. Policy scenarios of a 5% GHG cap on agricultural emissions in conjunction with a carbon offset payment system, designed to provide producer payments for net carbon footprint (GHG emissions – soil carbon sequestration) reductions compared to a baseline are evaluated to determine potential changes to land use and or producer income as a result of different policy scenarios. Results suggest that a policy solely targeted at emissions can be counterproductive in the sense that acreage reductions of more...
Tipo: Conference Paper or Presentation Palavras-chave: Cap and Trade; Carbon Sequestration; GHG Emissions; Agriculture; Agricultural and Food Policy; Environmental Economics and Policy; Q50; Q58; Q54.
Ano: 2010 URL: http://purl.umn.edu/60931
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Economic Impacts of EPA's Manure Application Regulations on Dairy Farms with Lagoon Liquid Systems in the Southwest Region AgEcon
Huang, Wen-Yuan; Magleby, Richard S.; Christensen, Lee A..
EPA's new restrictions on land application of manure nutrients by concentrated animal feeding operations (CAFOs) could decrease the net return of 6-17% of the medium and large dairy farms with lagoon systems in the southwestern United States. Many of the other dairy CAFOs in the region could achieve higher net income under the restrictions if they reduce feed costs by better utilizing manure and expanding homegrown feed production.
Tipo: Journal Article Palavras-chave: CAFO; Dairy farms; Land application; Manure regulations; Nutrient management; Environmental Economics and Policy; Livestock Production/Industries; C61; Q12; Q52; Q58.
Ano: 2005 URL: http://purl.umn.edu/43993
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Liberalizing Climate-Friendly Goods and Technologies in the WTO: Product Coverage, Modalities, Challenges and the Way Forward AgEcon
Zhang, ZhongXiang.
The Doha Round Agenda (paragraph 31(3)) mandates to liberalize environmental goods and services. This mandate offers a good opportunity to put climate-friendly goods and services on a fast track to liberalization. Agreement on this paragraph should represent one immediate contribution that the WTO can make to fight against climate change. This paper presents the key issues surrounding liberalized trade in climate-friendly goods and technologies in WTO environmental goods negotiations. It begins with what products to liberalize and how. Clearly, WTO environmental goods negotiations to date show that WTO member countries are divided by this key issue. Focusing on the issue, the paper explores options available to liberalize trade in climate-friendly goods...
Tipo: Working or Discussion Paper Palavras-chave: Environmental Goods and Services; Low-Carbon Goods and Technologies; Doha Round; WTO; Environmental Economics and Policy; F18; F13; Q56; Q54; Q58; Q48.
Ano: 2010 URL: http://purl.umn.edu/94620
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Effects of Bt Cotton in India During the First Five Years of Adoption AgEcon
Sadashivappa, Prakash; Qaim, Matin.
While previous research has analyzed the impacts of Bt cotton in India, most available studies are based on one or two years of data only. We analyze the technology’s performance over the first five years of adoption, using panel data with three rounds of observations. On average, Bt adopting farmers realize pesticide reductions of about 40%, and yield advantages of 30-40%. Profit gains are in a magnitude of US $60 per acre. These benefits have been sustainable over time. Farmers’ satisfaction is reflected in a high willingness to pay for Bt seeds. Nonetheless, in 2006 Indian state governments decided to establish price caps at levels much lower than what companies had charged before. This intervention has further increased farmers’ profits, but the impact...
Tipo: Journal Article Palavras-chave: Biotechnology; Bt cotton; Genetically modified crops; Farm survey; India; Seed markets; Technology adoption; Willingness to pay (WTP); Environmental Economics and Policy; Research and Development/Tech Change/Emerging Technologies; O32; O33; Q16; Q55; Q58.
Ano: 2009 URL: http://purl.umn.edu/49947
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Improving Land-use modelling within CGE to assess Forest-based Mitigation Potential and Costs AgEcon
Michetti, Melania; Parrado, Ramiro.
We present a computable general equilibrium model properly modified to analyse the potential role of the European forestry sector within climate mitigation. Improvements on database and modelling frameworks allow accounting for land heterogeneity across and within regions and for land transfers between agriculture, grazing, and forestry. The forestry sector has been modified to track carbon mitigation potential from both intensive and extensive forest margins, which have been calibrated according to a forest sectoral model. Two sets of climate policies are simulated. In a first scenario, Europe is assumed to commit unilaterally to reduce CO2 emissions by 20% and 30%, by 2020. In a second scenario, in addition to the emissions quotas, progressively higher...
Tipo: Working Paper Palavras-chave: Climate Change; Climate Mitigation; General Equilibrium Modelling; Forestry; Environmental Economics and Policy; D58; Q23; Q54; Q58.
Ano: 2012 URL: http://purl.umn.edu/122862
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Climate Change Meets Trade in Promoting Green Growth: Potential Conflicts and Synergies AgEcon
Zhang, ZhongXiang.
To date, border adjustment measures in the form of emissions allowance requirements (EAR) under the U.S. proposed cap-and-trade regime are the most concrete unilateral trade measure put forward to level the carbon playing field. If improperly implemented, such measures could disturb the world trade order and trigger a trade war. Because of these potentially far-reaching impacts, this paper focuses on this type of unilateral border adjustment, which requires importers to acquire and surrender emissions allowances corresponding to the embedded carbon contents in their goods from countries that have not taken climate actions comparable to that of home country. This discussion is mainly on the legality of unilateral EAR under the WTO rules. Given that the...
Tipo: Working or Discussion Paper Palavras-chave: Post-2012 climate negotiations; Border carbon adjustments; Carbon tariffs; Emissions allowance requirements; Cap-and-trade regime; Lieberman-Warner bill; Waxman-Markey bill; World Trade Organization; Kyoto Protocol; Developing countries; United States; Environmental Economics and Policy; F18; Q48; Q54; Q56; Q58.
Ano: 2010 URL: http://purl.umn.edu/59475
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An Experimental Examination of Target Based Conservation Auctions AgEcon
Boxall, Peter C.; Perger, Orsolya; Packman, Katherine.
Conservation auctions (CA) are typically employed to increase the provision of Ecological Goods and Services (EG&S) for achieving environmental goals. This paper exmaines the ability of a CA to meet an environmental target. Previous research on this topic used the number of contracts as a target rather than some specified environmental goal. We used experimental economic methods benchmarked to a wetlands restoration case study to examine a target constraint that must be met by bidders rather than a budget constraint. However, since no budget constraint is employed, agencies with limited resources might have to use other auction design procedures to ensure that financial outlays to pay winning bidders are not too high while meeting the target....
Tipo: Working Paper Palavras-chave: Conservation auctions; Environmental target; Experimental economics; Environmental Economics and Policy; Q52; Q58; D44.
Ano: 2012 URL: http://purl.umn.edu/121624
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An Experimental Analysis of Compliance in Dynamic Emissions Markets AgEcon
Stranlund, John K.; Murphy, James J.; Spraggon, John M..
Two important design elements for emission trading programs are whether and to what extent firms are able to bank emissions permits, and how these programs are to be enforced. In this paper we present results from laboratory emissions markets designed to investigate enforcement and compliance when these markets allow permit banking. Banking is motivated by a decrease in the aggregate permit supply in the middle of multi-period trading sessions. Consistent with theoretical insights, our experiments suggest that high permit violation penalties have little deterrence value in dynamic emissions markets, and that the main challenge of enforcing these programs is to motivate truthful self-reports of emissions.
Tipo: Working or Discussion Paper Palavras-chave: Compliance; Enforcement; Emissions trading; Laboratory experiments; Permit markets; Permit banking; Environmental Economics and Policy; Public Economics; C91; L51; Q58.
Ano: 2010 URL: http://purl.umn.edu/93966
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Endogenous Discounting and Climate Policy AgEcon
Tsur, Yacov; Zemel, Amos.
Under risk of abrupt climate change, the occurrence hazard is added to the social discount rate. As a result, the social discount rate (i) increases and (ii) turns endogenous to the global warming policy. The second effect bears profound policy implications that are magnified by economic growth. In particular, we find that greenhouse gases (GHG) emission should be terminated at a finite time so that the ensuing occurrence risk will vanish in the long run. Due to the public bad nature of the catastrophic risk, the second effect is ignored in a competitive allocation and unregulated economic growth will give rise to excessive emissions. In fact, the GHG emission paths under the optimal and competitive growth regimes lie at the extreme ends of the range of...
Tipo: Working or Discussion Paper Palavras-chave: Abrupt climate change; Hazard rate; Discounting; Economic growth; Emission policy; H23; H41; O13; O40; Q54; Q58.
Ano: 2008 URL: http://purl.umn.edu/37944
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In What Format and under What Timeframe Would China Take on Climate Commitments? A Roadmap to 2050 AgEcon
Zhang, ZhongXiang.
In what format and under what timeframe China would take on climate commitments is of significant relevance to China because it is facing great pressure both inside and outside international climate negotiations to exhibit greater ambition and is being confronted with the threats of trade measures. It is of significant global relevance as well because when China’s emissions peak is crucial to determine when global emissions would peak and because what China is going to do in what format has significant implications for the level and ambition of commitments from other countries. In response to these concerns and to put China in a positive position, this paper maps out the roadmap for China’s specific climate commitments towards 2050. Taking many factors...
Tipo: Working or Discussion Paper Palavras-chave: Carbon Intensity Target; Binding Emissions Caps; Post-Copenhagen Climate Negotiations; Energy Saving; Renewable Energy; Clean Development Mechanism; China; USA; India; Environmental Economics and Policy; Q42; Q48; Q52; Q54; Q58.
Ano: 2010 URL: http://purl.umn.edu/94843
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Assessment of Environment Impact of CAP Reforms on European Agricultural Production Efficiency AgEcon
Serrao, Amilcar.
The studies of performance and production efficiency have ignored additional products of most transformation processes classified as undesirable outputs. Without the inclusion of the undesirable outputs, the efficiency measurement is a purely technical measure, and it does not account for the interaction of the system with the environment and the impact of policy decisions on the system. Moreover, there are technological dependencies between the desirable and the undesirable outputs which have to be included in the analytical tools used to measure efficiency. The relationships between the desirable and the undesirable outputs motivate the exploration of new areas of the measurement of efficiency to incorporate policy decisions and address new issues. This...
Tipo: Conference Paper or Presentation Palavras-chave: Data Envelopment Analysis; Performance Measurement; Undesirable Outputs; Technological Dependence; Goal Programming; Common Agricultural Policy; Environmental Economics and Policy; CO2; DO1; Q15; Q58.
Ano: 2011 URL: http://purl.umn.edu/103409
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Invasive Species Management Through Tariffs: Are Prevention and Protection Synonymous? AgEcon
Ranjan, Ram.
This Paper designs a political economy model of invasive species management in order to explore the effectiveness of tariffs in mitigating the risk of invasion. The revenue interests of the government together with the interests of the lobby group competing with the imported agricultural commodity, that is believed to be the vector of invasive species, are incorporated in a Nash Bargaining game. The government, however, also considers the impact of tariffs on long run risks of invasion and decides optimal tariffs based upon its welfare in the pre and post-invasion scenarios. Along with the size of the lobby group, which is a function of the slope of the demand and supply curves, the weights assigned to the various components in the government welfare...
Tipo: Working or Discussion Paper Palavras-chave: Invasive species; Political economy; Tariffs; Bargaining; Interest groups; Political Economy; Resource /Energy Economics and Policy; H23; Q17; Q58.
Ano: 2004 URL: http://purl.umn.edu/15642
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The Role of Information Provision as a Policy Instrument to Supplement Environmental Taxes: Empowering Consumers to Choose Optimally AgEcon
Sartzetakis, Eftichios S.; Xepapadeas, Anastasios; Petrakis, Emmanuel.
The present paper examines, within a dynamic framework, the use of information provision as a policy instrument to supplement environmental taxation. We assume that at least a fraction of consumers do not posses the required information to make the optimal choices, and that their behavior at each time period depends on the accumulated stock of information. We show that, as the accumulated stock of information provision increases, both the optimal level of information provided at each period of time and the optimal tax rate decline over time. Our results provide strong evidence in support of information campaigns as a policy instrument to supplement traditional environmental policies. Information provision can shift the demand towards environmentally...
Tipo: Working or Discussion Paper Palavras-chave: Information Provision; Environmental Taxation; Environmental Economics and Policy; Q53; Q58; D62; D82.
Ano: 2009 URL: http://purl.umn.edu/52342
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Optimal Emission Policy under the Risk of Irreversible Pollution AgEcon
Ayong Le Kama, Alain; Pommeret, Aude; Prieur, Fabien.
We consider an optimal consumption and pollution problem that has two important features. Environmental damages due to economic activities may be irreversible and the level at which the degradation becomes irreversible is unknown. Particular attention is paid to the situation where agents are relatively impatient and/or do not care a lot about the environment and/or Nature regenerates at low rate. We show that the optimal policy of the uncertain problem drives the economy in the long run toward a steady state while, when ignoring irreversibility, the economy follows a balanced growth path accompanied by a perpetual decrease in environmental quality and consumption, both asymptotically converging toward zero. Therefore, accounting for the risk of...
Tipo: Working or Discussion Paper Palavras-chave: Optimal Control; Irreversibility Threshold; Uncertainty; Optimal Reversible; Irreversible Policy; Environmental Economics and Policy; D81; Q54; Q58.
Ano: 2011 URL: http://purl.umn.edu/101292
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Consumer Preferences for Refrigerators Manufactured by “Climate Leaders” AgEcon
Li, Xiaogu; Clark, Christopher D.; Jensen, Kimberly L.; Yen, Steven T..
In 2002, EPA established a voluntary program called the Climate Leaders Program (CL Program) designed for organizations to complete a corporate greenhouse gas (GHG) inventory, set a goal for reducing GHG emissions, and achieve that goal. The program was never implemented as a product labeling program. In 2010, EPA announced the program’s phase out. This study examines whether the CL Program could have been effectively used as a consumer product labeling program to assist consumers in choosing products manufactured by firms that have voluntarily set and achieved targeted GHG emission reductions.
Tipo: Presentation Palavras-chave: Consumer Preferences; Climate Leaders; Willingness-to-Pay; Environmental Economics and Policy; Q50; Q58.
Ano: 2012 URL: http://purl.umn.edu/123756
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Dynamic Core-Theoretic Cooperation in a Two-Dimensional International Environmental Model AgEcon
Germain, Marc; Tulkens, Henry; Magnus, Alphonse.
This article deals with cooperation issues in international pollution problems in a two dimensional dynamic framework implied by the accumulation of the pollutant and of the capital goods. Assuming that countries do reevaluate at each period the advantages to cooperate or not given the current stocks of pollutant and capital, and under the assumption that damage cost functions are linear, we define at each period of time a transfer scheme between countries, which makes cooperation better for each of them than non-cooperation. This transfer scheme is also strategically stable in the sense that it discourages partial coalitions.
Tipo: Working or Discussion Paper Palavras-chave: Stock Pollutant; Capital Accumulation; International Environmental Agreements; Dynamic Core Solution; Environmental Economics and Policy; Q54; Q58; F42; F53; O21.
Ano: 2009 URL: http://purl.umn.edu/50467
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Oyster Demand Adjustments to Counter-Information and Source Treatments in Response to Vibrio vulnificus AgEcon
Morgan, O. Ashton; Martin, Gregory S.; Huth, William L..
A web-based contingent behavior analysis was developed to quantify the effect of both negative and positive information treatments and post harvest processes on demand for oysters. Results from a panel model indicate that consumers of raw and cooked oysters behave differently after news of an oyster-related human mortality. While cooked oyster consumers take precautionary measures against risk, raw oyster consumers exhibit optimistic bias and increase their consumption level. Further, by varying the source of a counter-information treatment, we find that source credibility impacts behavior. Oyster consumers, and in particular, raw oyster consumers, are most responsive to information provided by a not-for- profit, nongovernmental organization. Finally, post...
Tipo: Journal Article Palavras-chave: Consumer behavior; Information treatments; Non-market valuation; Optimistic bias; Oyster demand; Source credibility; Vibrio vulnificus; Agribusiness; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Institutional and Behavioral Economics; Q18; Q13; Q58.
Ano: 2009 URL: http://purl.umn.edu/56656
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Is It Fair to Treat China as a Christmas Tree to Hang Everybody’s Complaints? Putting its Own Energy Saving into Perspective AgEcon
ZhongXiang, Zhang.
China had been the world’s second largest carbon emitter for years. However, recent studies show that China had overtaken the U.S. as the world’s largest emitter in 2007. This has put China on the spotlight, just at a time when the world community starts negotiating a post-Kyoto climate regime under the Bali roadmap. China seems to become such a Christmas tree on which everybody can hang his/her complaints. This paper first discusses whether such a critics is fair by examining China’s own efforts towards energy saving, the widespread use of renewable energy and participation in clean development mechanism. Next, the paper puts carbon reductions of China’s unilateral actions into perspective by examining whether the estimated greenhouse gas emission...
Tipo: Working or Discussion Paper Palavras-chave: Energy Saving; Renewable Energy; Post-Kyoto Climate Negotiations; Clean Development Mechanism; China; USA; Environmental Economics and Policy; Q42; Q48; Q53; Q54; Q58.
Ano: 2009 URL: http://purl.umn.edu/52341
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Measuring the Effects of Environmental Regulations: The Critical Importance of a Spatially Disaggregated Analysis AgEcon
Auffhammer, Maximilian; Bento, Antonio M.; Lowe, Scott E..
We examine the effects of the 1990 Clean Air Act Amendments (CAAA) on ambient concentrations of PM10 in the United States between 1990 and 2005. Consistent with prior literature, we find that non-attainment designation has no effect on the average monitor in non-attainment counties, after controlling for weather, socioeconomic characteristics at the county level and lagged concentrations. In sharp contrast, if we allow for heterogeneous treatment by type of monitor and county, we do find that the 1990 CAAA produced substantial effects. Our estimation results suggest that non-attainment counties with single monitors experienced a drop in concentrations of 10.5% relative to attainment counties. In non-attainment counties with multiple monitors, the overall...
Tipo: Working or Discussion Paper Palavras-chave: Air Pollution; Clean Air Act; Spatial Modeling; Environmental Economics and Policy; Research Methods/ Statistical Methods; Q53; Q58.
Ano: 2007 URL: http://purl.umn.edu/6088
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