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Self-enforcing Agreements on Water Allocation 31
Ansink, Erik.
Many water allocation agreements in transboundary river basins are inherently unstable. Due to stochastic river flow, agreements may be broken in case of drought. The objective of this paper is to analyse whether water allocation agreements can be self-enforcing. An agreement is modelled as the outcome of bargaining game on river water allocation. Given this agreement, the bargaining game is followed by a repeated extensive-form game in which countries decide whether or not to comply with the agreement. I assess under what conditions such agreements are self-enforcing, given stochastic river flow. The results show that, for sufficiently low discounting, every efficient agreement can be sustained in subgame perfect equilibrium. Requiring...
Tipo: Working or Discussion Paper Palavras-chave: Self-Enforcing Agreement; Repeated Extensive-Form Game; Water Allocation; Renegotiation-Proofness; Environmental Economics and Policy; C73; Q25.
Ano: 2009 URL: http://purl.umn.edu/54292
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Productive Water Uses at Household Level in Rural Kenya: Case Study of the Ukambani District 31
Speelman, Stijn; D'Haese, Luc; Ochieng, Cosmas M.O.; Vandermeulen, Valerie.
As a result of the growing world population and enhanced by the rising of living standards, competition for water is growing and this causes increased pressure on water resources worldwide. This tendency gave rise to the development of the integrated water resources management approach (IWRM), acknowledging the need to manage water resources in a holistic and integrated way. The IWRM objective to optimize economic, social and environmental outcomes of water management, can however only be reached if impact of water uses is correctly assessed. Nevertheless, often multiple uses of water within sectors are insufficiently recognized in planning and management. One of these neglected uses is the productive water use by households. Nonetheless, this use is...
Tipo: Conference Paper or Presentation Palavras-chave: Productive water uses; Livelihood; Rural development; Kenya; Resource /Energy Economics and Policy; Q25; O13.
Ano: 2006 URL: http://purl.umn.edu/25325
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CO2 Allowance Allocation in the Regional Greenhouse Gas Initiative and the Effect on Electricity Investors 31
Burtraw, Dallas; Kahn, Danny; Palmer, Karen L..
The Regional Greenhouse Gas Initiative (RGGI) is an effort by nine Northeast and Mid-Atlantic states to develop a regional, mandatory, market-based cap-and-trade program to reduce greenhouse gas (GHG) emissions from the electricity sector. The initiative is expected to lead to an increase in the price of electricity in the RGGI region and beyond. The implications of these changes for the value of electricity-generating assets and the market value of the firms that own them depends on the initial allocation of carbon dioxide allowances, the composition of generating assets owned by the firm, and the locations of those assets. Changes in asset values inside the RGGI region may be positive or negative, whereas changes outside of the RGGI region are almost...
Tipo: Working or Discussion Paper Palavras-chave: Emissions trading; Allowance allocations; Electricity; Air pollution; Auction; Grandfathering; Generation-performance standard; Output-based allocation; Cost-effectiveness; Greenhouse gases; Climate change; Global warming; Carbon dioxide; Asset value; Environmental Economics and Policy; Q2; Q25; Q4; L94.
Ano: 2005 URL: http://purl.umn.edu/10495
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The Effect on Asset Values of the Allocation of Carbon Dioxide Emission Allowances 31
Burtraw, Dallas; Palmer, Karen L.; Bharvirkar, Ranjit; Paul, Anthony.
Paradoxically, owners of existing generation assets may be better off paying for carbon dioxide emission allowances than having them distributed for free. This analysis shows that it takes just 7.5% of the revenue raised under an auction to preserve the asset values of existing generators.
Tipo: Working or Discussion Paper Palavras-chave: Carbon dioxide; Emission allowance trading; Allocation; Electricity; Restructuring; Air pollution; Auction; Grandfathering; Generation performance standard; Outputbased allocation; Cost-effectiveness; Environmental Economics and Policy; Q2; Q25; Q4; L94.
Ano: 2002 URL: http://purl.umn.edu/10705
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Water sharing for the environment and agriculture in the Broken catchment 31
Farquharson, Robert J.; Ramilan, Thiagarajah; Stewardson, Michael; Beverly, Craig; Vietz, Geoff; George, Brendan; Dassanyake, K.; Sammonds, M..
The Commonwealth of Australia Water Act 2007 changed the priority for water use in the Murray-Darling Basin (MDB) to first ensure environmentally sustainable levels of extraction and then to maximise net economic returns to the community from water use. The Murray- Darling Basin Authority (MDBA) is expected to deliver a draft Basin Plan in 2011 providing a framework for future water planning. The Plan will include Sustainable Diversion Limits (SDLs) which define water diversions for consumption while maintaining environmental assets and ecosystem functions. The 2009 MDBA Concept Statement acknowledged that in some areas less information is available to determine the SDLs. The 2010 MDBA Guide to the Basin Plan proposed SDLs reducing the current long-term...
Tipo: Conference Paper or Presentation Palavras-chave: Water sharing; Environment; Agriculture; Murray-Darling Basin; Broken catchment; Resource /Energy Economics and Policy; Q18; Q25; Q28.
Ano: 2011 URL: http://purl.umn.edu/100547
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'Second-Best' Adjustments to Externality Estimates in Electricity Planning with Competition 31
Burtraw, Dallas; Palmer, Karen L.; Krupnick, Alan J..
A number of state public utility commissions are using "social costing" methods to consider externalities in electricity resource planning. The most comprehensive and formal method is the use of monetary place-holders in the financial evaluation of new investments and potentially in system dispatch to reflect quantitative estimates of externality values. This approach necessarily must take existing environmental and social regulation as given. Furthermore, regulated utilities face increasing competition from electricity generators outside their service territory who may not be affected by social costing. The lack of universal and uniform social costing places PUC actions soundly in the realm of "second-best policy" and they may have unintended consequences...
Tipo: Working or Discussion Paper Palavras-chave: Second-best; Environmental regulation; Electricity regulation; Environmental adders; Environmental Economics and Policy; Q25; Q48; L51.
Ano: 1995 URL: http://purl.umn.edu/10753
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Heterogeneous Responses to Water Conservation Programs: The Case of Residential Users in Los Angeles 31
Hanemann, W. Michael; Nauges, Celine.
We propose a detailed analysis of heterogeneity in households’ responses to water conservation programs (price increase, voluntary and mandatory conservation) during periods of water shortage. Using a unique dataset covering water consumption of all residential users in Los Angeles (California) during the drought (1988-1992), we show that households generally were responsive to the conservation measures but that the magnitude of households’ responses varies depending on the instrument and on households’ characteristics, in particular the size of their lot. Price elasticity is estimated between –0.29 and –0.47 in the high season (June-October), and between 0 and –0.19 in the low season (November-May). Results suggest that the voluntary conservation program...
Tipo: Working or Discussion Paper Palavras-chave: Water conservation; Residential use; Heterogeneity in behavior; Panel data; Resource /Energy Economics and Policy; C23; D12; Q25.
Ano: 2006 URL: http://purl.umn.edu/7158
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Groundwater Entrepreneurs in China: Selling Water to Meet the Demand for Water 31
Zhang, Lijuan; Wang, Jinxia; Huang, Jikun; Rozelle, Scott.
The overall goal of our paper is to better understand the development of groundwater markets in northern China. In particular, we focus on the factors that determine the development of groundwater markets in our attempt to explain their 'breadth' and 'depth.' Based on a survey of 24 randomly sampled villages and 50 randomly sampled tubewells in two provinces (Hebei and Henan Province) in 2001 and a field survey of 68 randomly sampled villages in 4 provinces (Hebei, Henan, Shanxi, and Shaanxi) of northern China in 2004, our results show that groundwater markets in northern China have emerged and are developing rapidly. Our results show that groundwater markets in northern China are informal and localized. The markets have developed in a way in which they...
Tipo: Conference Paper or Presentation Palavras-chave: Groundwater markets; Emergence; Characteristics; Determinants; Northern China; Resource /Energy Economics and Policy; O53; Q15; Q25.
Ano: 2006 URL: http://purl.umn.edu/25605
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Institutional and Economic Dynamics of Water Users Cooperative (WUC) Societies in Cauvery Basin of Karnataka 31
Rohith, B.K.; Chandrakanth, Mysore G..
The economic and institutional dimensions of water users cooperative (WUC) societies have been analyzed with regards to performance, membership and transaction costs in forming organization in the Cauvery basin of Karnataka. Field data have been collected from presidents and members of 30 WUC societies in Tirumakudalu Narasipura taluk of Mysore, Karnataka. Using cluster analysis, these have been grouped into (i) well performing, (ii) moderately performing, and (iii) poorly performing WUC societies. To understand institutional and economic dimensions, the selected WUC societies have been grouped based on command area, membership and conjunctive use of water. The odds ratio determined using logit model has indicated that for every one chance of not willing...
Tipo: Journal Article Palavras-chave: Water users cooperative society; Institutional economics; Water institutions; Cauvery Basin; Agricultural and Food Policy; Q13; Q15; Q25; K00.
Ano: 2011 URL: http://purl.umn.edu/118231
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Climate Change and Texas Water Planning: an Economic Analysis of Inter-basin Water Transfers 31
Cai, Yongxia; McCarl, Bruce A..
Panel models with random effects are used to estimate how climate influences in-stream surface water supply, municipal water demand, crop yields and irrigation water use. The results are added into TEXRIVERSIM, a state wide economic, hydrological, environmental and inter-basin water transfer (IBTs) investment model, through the objective function and hydrological constraints. A climate change related scenario analysis from the Global Circulation Models (GCMs)--Hadley, Canadian, BCCR and NCAR with SRES scenarios A1B, B1, and A2 indicates that inter-basin water transfers not only greatly relax water scarcity problems for major cities and industrial counties, but also create growth opportunity for Houston. However, while destination basins receive the...
Tipo: Conference Paper or Presentation Palavras-chave: Climate Change; Inter-basin Water Transfers; Water Scarcity; Environmental Stream Flows; Environmental Economics and Policy; Q25; Q54; Q58.
Ano: 2009 URL: http://purl.umn.edu/49933
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Analisis de escenarios de políticas para la gestion publica en la agricultura de regadio 31
Riesgo, Laura; Gomez-Limon, Jose Antonio.
En este trabajo se presenta un enfoque metodológico para el análisis de presiones e impactos de la aplicación conjunta de diferentes escenarios de política agraria y de tarifación del agua de riego. Para alcanzar dicho objetivo se asume que los agricultores consideran distintos criterios en la gestión de su actividad productiva. En este contexto decisional se utilizan modelos de programación matemática basados en la Teoría de la Utilidad Multiatributo (MAUT), de modo que pueda simularse el comportamiento de los agricultores en el futuro. Como resultado de dicha simulación no sólo se obtienen las variables de decisión de los agricultores (planes de cultivos), sino también un conjunto de indicadores económicos, sociales y ambientales que serán de utilidad...
Tipo: Journal Article Palavras-chave: Multiple-Criteria Modelling; Irrigated Agriculture; Scenario Analysis; CAP; Water Policy.; Public Economics; Q25; Q15; C61.
Ano: 2005 URL: http://purl.umn.edu/28768
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Impacts of Biofuels on Water Supply: Proposed Cures May Worsen the Disease 31
Huffaker, Ray G..
Tipo: Journal Article Palavras-chave: Water; Conservation; Biofuels; Irrigation; Resource /Energy Economics and Policy; Q25; Q48.
Ano: 2010 URL: http://purl.umn.edu/95758
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Host Country Attractiveness for CDM Non-Sink Projects 31
Jung, Martina.
In the present study, CDM host countries are classified according to their attractiveness for CDM non-sink projects. A cluster analysis is conducted based on three different factors determining host country attractiveness (mitigation potential, institutional CDM capacity and general investment climate) in order to elaborate a CDM host country classification. The results suggest that only a small proportion of potential host countries will attract most of the CDM investment. The CDM (non-sink) stars are China, India, Brazil, Argentina, Mexico, South Africa, Indonesia and Thailand. They are followed by attractive countries like Costa Rica, Trinidad and Tobago, Mongolia, Panama, and Chile. While most of the promising CDM host countries are located in Latin...
Tipo: Working or Discussion Paper Palavras-chave: Clean development mechanism; Kyoto Protocol; Attractiveness; Cluster analysis; Farm Management; Q25; C49.
Ano: 2005 URL: http://purl.umn.edu/26328
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Development Aid and the CDM - How to Interpret "Financial Additionality" 31
Dutschke, Michael; Michaelowa, Axel.
International climate negotiations have specified that projects under the Clean Development Mechanism (CDM) should not lead to a "diversion" of official development assistance (ODA). It is however unchallenged that ODA can be used in capacity building for the CDM. Diversion can be interpreted in financial, sectoral and regional terms. There are possibilities to use ODA benchmarks to define diversion such as the UN 0.7% target but they are unlikely to be politically acceptable. On the project level, three main options exist but none of them is perfect. The value of emissions credits (CERs) could be deducted from ODA. This however leads to a long-term pressure on the ODA level. Differentiating an ODA-financed baseline project and a "piggyback" CDM option is...
Tipo: Working or Discussion Paper Palavras-chave: International climate policy; CDM; Development assistance; Environmental Economics and Policy; Q25; O13.
Ano: 2003 URL: http://purl.umn.edu/26243
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The Optimal Climate Policy Portfolio when Knowledge Spills Across Sectors 31
Massetti, Emanuele; Nicita, Lea.
This paper studies the implications for climate policy of the interactions between environmental and knowledge externalities. Using a numerical analysis performed with the hybrid integrated assessment model WITCH, extended to include mutual spillovers between the energy and the non-energy sector, we show that the combination between environmental and knowledge externalities provides a strong rationale for implementing a portfolio of policies for both emissions reduction and the internalisation of knowledge externalities. Moreover, we show that implementing technology policy as a substitute for stabilisation policy is likely to increase global emissions.
Tipo: Working or Discussion Paper Palavras-chave: Technical Change; Climate Change; Development; Innovation; Spillovers; Environmental Economics and Policy; C72; H23; Q25; Q28; O31; O41; Q54.
Ano: 2010 URL: http://purl.umn.edu/92912
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Economics of Pollution Trading for SO2 and NOx 31
Burtraw, Dallas; Evans, David A.; Krupnick, Alan J.; Palmer, Karen L.; Toth, Russell.
For years economists have urged policymakers to use market-based approaches such as cap-and-trade programs or emission taxes to control pollution. The SO2 allowance market created by Title IV of the 1990 U.S. Clean Air Act Amendments represents the first real test of the wisdom of economists' advice. Subsequent urban and regional applications of NOx emission allowance trading took shape in the 1990s in the United States, culminating in a second large experiment in emission trading in the eastern United States that began in 2003. This paper provides an overview of the economic rationale for emission trading and a description of the major U.S. programs for sulfur dioxide (SO2) and nitrogen oxides (NOx). We evaluate these programs along measures of...
Tipo: Working or Discussion Paper Palavras-chave: Sulfur dioxide; Nitrogen oxides; Emission trading; Power plants; Air pollution; Environmental Economics and Policy; H23; Q25; Q28; D78.
Ano: 2005 URL: http://purl.umn.edu/10488
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Economics of Integrated Watershed and Reservoir Management 31
Lee, Yoon; Yoon, Taeyeon; Shah, Farhed A..
A dynamic optimization framework is used to analyze integrated watershed management and suggest appropriate policies. Soil conservation, reservoir level sediment release, downstream water allocation and water quality are subject to control. Application of the model to the Aswan Dam watershed illustrates the need for international cooperation to manage shared watersheds.
Tipo: Conference Paper or Presentation Palavras-chave: Watershed management; Soil erosion; Reservoir sedimentation; Environmental Economics and Policy; Resource /Energy Economics and Policy; Q25; Q53.
Ano: 2009 URL: http://purl.umn.edu/49478
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El control de la contaminacion por nitratos en el regadio 31
Martinez, Yolanda Martinez; Karaj, Skender Uku; Murillo, Jose Albiac.
RESUMEN: En este artículo se analizan los efectos de algunas políticas de gestión del agua y de las técnicas de riego sobre el rendimiento de las actividades de cultivo y la contaminación del agua en la zona de regadío de Flumen-Monegros. El análisis se basa en la obtención de la respuesta del rendimiento de los cultivos al agua de riego y al abonado de nitrógeno. Las funciones de rendimiento se estiman mediante el programa de crecimiento de cultivos EPIC que incorpora información de las características locales de clima, suelo, manejo y sistema de riego de las actividades de cultivo. En los resultados se examina la relación entre los rendimientos y el uso del agua y del nitrógeno, y se cuantifica el coste para los agricultores de la reducción de la...
Tipo: Journal Article Palavras-chave: Nitrogen pollution; Water management; Water and nitrogen crop response functions.; Environmental Economics and Policy; Q25; Q50.
Ano: 2002 URL: http://purl.umn.edu/28762
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MCDM Farm System Analysis for Public Management of Irrigated Agriculture 31
Gomez-Limon, Jose Antonio; Berbel, Julio; Arriaza Balmón, Manuel.
In this paper we present a methodology within the multi-criteria paradigm to assist policy decision-making on water management for irrigation. In order to predict farmers' response to policy changes a separate multi-attribute utility function for each homogeneous group, attained applying cluster analysis, is elicited. The results of several empirical applications of this methodology suggest an improvement of the ability to simulate farmers' decision-making process compared to other approaches. Once the utility functions are obtained the policy maker can evaluate the differential impacts on each cluster and the overall impacts in the area of study (i.e. a river basin) by aggregation. On the empirical side, the authors present some studies for different...
Tipo: Conference Paper or Presentation Palavras-chave: Multi-attribute utility theory; Water management; Irrigation; Policy analysis; Agricultural and Food Policy; Q25; Q15; C61.
Ano: 2005 URL: http://purl.umn.edu/24676
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Assessing the Market for Poultry Litter in Georgia: Are Subsidies Needed to Protect Water Quality? 31
Mullen, Jeffrey D.; Bekchanov, Ulugbek; Karali, Berna; Kissel, David; Risse, Mark L.; Rowles, Kristin; Collier, Sam.
Concerns about nutrient loads into our waters have focused attention on poultry litter applications. Like many states with a large poultry industry, Georgia recently designed a subsidy program to facilitate the transportation of poultry litter out of vulnerable watersheds. This paper uses a transportation model to examine the necessity of a poultry litter subsidy to achieve water protection goals in Georgia. We also demonstrate the relationship between diesel and synthetic fertilizer prices and the value of poultry litter. Results suggest that a well functioning market would be able to remove excess litter from vulnerable watersheds in the absence of a subsidy.
Tipo: Journal Article Palavras-chave: Fertilizer; Phosphorous; Poultry litter; Subsidy; Transportation model; Water quality; Environmental Economics and Policy; Marketing; Q12; Q13; Q25; Q53.
Ano: 2011 URL: http://purl.umn.edu/117948
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