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The Incidence of Pollution Control Policies AgEcon
Parry, Ian W.H.; Sigman, Hilary; Walls, Margaret; Williams, Roberton C., III.
This paper reviews theoretical and empirical literature on the household distribution of the costs and benefits of pollution control policies, and ways of integrating distributional issues into environmental cost-benefit analysis. Most studies find that policy costs fall disproportionately on poorer groups, though this is less pronounced when lifetime income is used, and policies affect prices of inputs used pervasively across the economy. The policy instrument itself is also critical; freely allocated emission permits may hurt the poor the most, as they transfer income to shareholders via scarcity rents created by higher prices, while emissions taxes offer opportunities for progressive revenue recycling. And although low-income households appear to bear a...
Tipo: Working or Discussion Paper Palavras-chave: Distributional incidence; Emissions taxes; Tradable permits; Environmental benefits; Distributional weights; Environmental Economics and Policy; Q52; Q58; H22.
Ano: 2005 URL: http://purl.umn.edu/10651
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Incorporating Environmentally Compliant Manure Nutrient Disposal Costs into Least-Cost Livestock Ration Formulation AgEcon
Hadrich, Joleen C.; Wolf, Christopher A.; Black, J. Roy; Harsh, Stephen B..
Livestock rations are formulated to minimize feed cost subject to nutritional requirements for a target performance level, which ignores the potentially substantial cost of disposing of nutrients fed in excess of nutritional requirements. We incorporate nutrient disposal costs into a modified least-cost ration formulation model to arrive at a joint least-cost decision that minimizes the sum of feed and net nutrient disposal costs. The method is demonstrated with phosphorus disposal costs on a representative dairy farm. Herd size, land availability and proximity, crop rotation, and initial soil phosphorus content are shown to be important in determining phosphorus disposal costs.
Tipo: Journal Article Palavras-chave: Environmental compliance; Linear programming; Livestock rations; Manure disposal; Agribusiness; Environmental Economics and Policy; Livestock Production/Industries; C61; Q12; Q52.
Ano: 2008 URL: http://purl.umn.edu/45525
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Getting Cars Off the Road: The Cost-Effectiveness of an Episodic Pollution Control Program AgEcon
Cropper, Maureen L.; Jiang, Yi; Alberini, Anna; Baur, Patrick.
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 effectiveness of an episodic scheme that requires people to buy permits in order 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 VOCs by 50 tons and NOx 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 39 tons of VOCs and 33 tons of NOx per day. The...
Tipo: Working or Discussion Paper Palavras-chave: Ground-Level Ozone; Episodic Pollution Control Schemes; Mobile Sources; Volatile Organic Compounds (Vocs); Cost Per Ton of Vocs Removed; Environmental Economics and Policy; Q52; Q53; Q58.
Ano: 2010 URL: http://purl.umn.edu/60749
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Economic Effects of Environmental Taxation on Chemical Fertilizers AgEcon
Kim, Chang-Gil; Stoecker, Arthur L..
This paper analyzes the economic effects of environmental taxes on chemical fertilizer in producing rice. A charge of 10 percent tax on nitrogen fertilizer leads to a reduction in fertilizer use of 1.5 percent without changing rice yield, but the farm income is reduced by 0.6 percent. The tax rate of 100 percent leads to a reduction of 14.6 percent in fertilizer use, a 0.4 percent reduction in rice yield, and a 3.6 percent reduction in farm income. A significant feature of eco-taxes imposed on chemical fertilizers is their revenue potential, which could contribute to increasing government budgets for finance pollution control programs, such as education and R&D. This study provides an insight into the application of market-based instrument to achieve...
Tipo: Conference Paper or Presentation Palavras-chave: Polluter-pays-principle; Nonpoint pollution; Environmental tax; Nitrogen fertilizer; Negative externalities; Environmental Economics and Policy; Q28; Q52.
Ano: 2006 URL: http://purl.umn.edu/25501
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Optimal Management of a Potential Invader: The Case of Zebra Mussels in Florida AgEcon
Lee, Donna J.; Adams, Damian C.; Rossi, Frederick J..
Dominant users of Lake Okeechobee water resources are agricultural producers and recreational anglers. These uses will be directly affected, should the lake become infested with zebra mussels. We employ a probabilistic bioeconomic simulation model to estimate the potential impact of zebra mussels on consumptive water uses, recreational angling, and wetland ecosystem services under alternative public management scenarios. Without public management, the expected net economic impact from zebra mussels is - $244.1 million over 20 years. Public investment in prevention and eradication will yield a net expected gain of +$188.7 million, a superior strategy to either prevention or eradication alone.
Tipo: Journal Article Palavras-chave: Cost transfer; Fishing; Invasive species; Probability transition matrix; Surface water; Wetlands; C63; Q25; Q52; Q57; Q58.
Ano: 2007 URL: http://purl.umn.edu/37125
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The Potential Economic and Environmental Costs of GHG Mitigation Measures for Cattle Sectors in Northern Ireland AgEcon
Minihan, Erin S.; Wu, Ziping.
National greenhouse gas (GHG) mitigation strategy can benefit from information on the technical and economic viability of abatement options. The life-cycle-analysis (LCA) and marginal abatement cost curve (MACC) approaches provide a good, although partial, indication for the potential of existing technologies to mitigate GHG emissions. The input-output (IO) approach has advantages in capturing the indirect impacts of technology adoption from shifts in economic structure and linkages between sectors. It is therefore ideal to develop an integrated approach to more accurately assess the overall economic and environmental impacts of climate policy. In this study, we aim to develop such an approach that extends the assessment of viability to include indirect...
Tipo: Conference Paper or Presentation Palavras-chave: GHG mitigation; IO analysis; Technical cost; Northern Ireland; Agricultural and Food Policy; Livestock Production/Industries; C67; Q52; Q56; Q58.
Ano: 2011 URL: http://purl.umn.edu/108779
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Optimal Soil Management and Environmental Policy AgEcon
Oueslati, Walid.
This paper studies the effects of environmental policy on the farmer’s soil optimal management. We consider a dynamic economic model of soil erosion where the intensity use of inputs allows the farmer to control soil losses. Therefore, inputs use induces a pollution which is accentuated by the soil fragility. We show, at the steady state, that environmental tax induces a more conservative farmer behavior for soil, but in some cases it can exacerbates pollution. These effects can be moderated when farmer introduces abatement activity.
Tipo: Conference Paper or Presentation Palavras-chave: Soil erosion; Pollution; Environmental policy; Optimal soil conservation; Abatement activities; Environmental Economics and Policy; Q12; Q24; Q28; Q52; H23.
Ano: 2005 URL: http://purl.umn.edu/24533
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Does geography matter in nutrient abatement? Bioeconomic model of heteregoneus farm nutrient loads AgEcon
Helin, Janne.
Economists often rely on stylised models for analysis of environmental policies. This study demonstrates that abstracting from soil and topography can have profound effect on marginal abatement costs of nutrient loads. By extending earlier bioeconomic models to represent heterogeneous soils and slopes, it is possible to show that targeting the abatement methods on high load risk areas allows low cost reduction. Ignoring the heterogeneity can lead to significant overestimates of the abatement costs and hence to misleading policy recommendations. The results hold even for relatively Flat areas, such as the watershed of River Kalajoki, for which the model was applied to.
Tipo: Conference Paper or Presentation Palavras-chave: Non-point source water pollution; Abatement costs; Heterogeneity; Agricultural and Food Policy; Environmental Economics and Policy; Q25; Q52.
Ano: 2009 URL: http://purl.umn.edu/51693
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The Impact of Shale Exploration on Housing Values in Pennsylvania AgEcon
Klaiber, H. Allen; Gopalakrishnan, Sathya.
Horizontal drilling and hydraulic fracturing processes to extract shale gas have raised concerns among local residents over the safety of these new drilling techniques. To assess whether potential negative externalities associated with shale gas exploration are capitalized into surrounding homeowners property values, we estimate a hedonic model combining data on 3,464 housing sales occurring between 2008 and 2010 in a suburban/rural county south of Pittsburgh, PA which experienced large numbers of new horizontal Marcellus wells beginning in late 2008. Using hedonic methods, we find a negative and significant impact to households in close proximity both spatially and temporally to this activity. Further we find that this negative impact disproportionately...
Tipo: Presentation Palavras-chave: Shale gas; Housing values; Risk perceptions; Hedonic; Environmental Economics and Policy; Land Economics/Use; Resource /Energy Economics and Policy; Q51; Q52; R21.
Ano: 2012 URL: http://purl.umn.edu/124368
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Voluntary Pollution Abatement and Regulation AgEcon
Delgado, Michael S.; Khanna, Neha.
Tipo: Conference Paper or Presentation Palavras-chave: Altruism; Voluntary Pollution Abatement; Regulation; Environmental Economics and Policy; Q52; Q58; K32.
Ano: 2011 URL: http://purl.umn.edu/103886
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How A Cap-and-Trade Policy of Green House Gases Could Alter the Face of Agriculture in the South: A Spatial and Production Level Analysis. AgEcon
Nalley, Lawton Lanier; Popp, Michael P.; Fortin, Corey.
With the Waxman-Markey Bill passing the House and the Obama administration’s push to reduce carbon emissions, the likelihood of the implementation of some form of a carbon policy is increasing. This study estimates the greenhouse gas (GHG) emissions of the six largest crops produced in Arkansas using 63 different production practices as documented by University of Arkansas Cooperative Extension Service. From these GHG estimates a baseline state “carbon footprint” was estimated and a hypothetical cap-and-trade carbon reduction of 5, 10, and 20% was levied on Arkansas agriculture. Results show that while a modest reduction in GHG emissions (5%) would only affect crop allocations amongst certain crops while marginally reducing state net returns, a 20%...
Tipo: Conference Paper or Presentation Palavras-chave: Cap-and-Trade; Carbon; Sustainability; Agricultural and Food Policy; Environmental Economics and Policy; Q28; Q52; Q54; Q56.
Ano: 2009 URL: http://purl.umn.edu/55717
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Impacts of Border Carbon Adjustments on China’s Sectoral Emissions: Simulations with a Dynamic Computable General Equilibrium Model AgEcon
Bao, Qin; Tang, Ling; Zhang, ZhongXiang; Qiao, Han; Wang, Shouyang.
Carbon-based border tax adjustments (BTAs) have recently been proposed by some OECD countries to level the carbon playing field and target major emerging economies. This paper applies a multi-sector dynamic computable general equilibrium (CGE) model to estimate the impacts of the BTAs implemented by US and EU on China’s sectoral carbon emissions. The results indicate that BTAs will cut down export prices and transmit the effects to the whole economy, reducing sectoral output-demands from both supply side and demand side. On the supply side, sectors might substitute away from exporting toward domestic market, increasing sectoral supply; while on the demand side, the domestic income may be strikingly cut down due to the decrease in export price, decreasing...
Tipo: Working Paper Palavras-chave: Border Carbon Tax Adjustments; Computable General Equilibrium Model; Carbon Emissions; Environmental Economics and Policy; D58; F18; Q43; Q48; Q52; Q54; Q56; Q58.
Ano: 2011 URL: http://purl.umn.edu/120044
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Linking Reduced Deforestation and a Global Carbon Market: Impacts on Costs, Financial Flows, and Technological Innovation AgEcon
Bosetti, Valentina; Lubowski, Ruben N.; Golub, Alexander; Markandya, Anil.
Discussions over tropical deforestation are currently at the forefront of climate change policy negotiations at national, regional, and international levels. This paper analyzes the effects of linking Reduced Emissions from Deforestation and Forest Degradation (REDD) to a global market for greenhouse gas emission reductions. We supplement a global climate-energy-economy model with alternative cost estimates for reducing deforestation emissions in order to examine a global program for stabilizing greenhouse gas concentrations at 550 ppmv of CO2 equivalent. Introducing REDD reduces global forestry emissions through 2050 by 20-22% in the Brazil-only case and by 64-88% in the global REDD scenarios. At the same time, REDD lowers the total costs of the...
Tipo: Working or Discussion Paper Palavras-chave: Carbon market; Climate change; Innovation; Mitigation; Policy costs; Offsets; Reduced Emissions from Deforestation and Degradation (REDD); Technological change; Tropical deforestation; Environmental Economics and Policy; Q23; Q24; Q42; Q52; Q54; Q55.
Ano: 2009 URL: http://purl.umn.edu/52544
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Estimating the Marginal Costs of Greenhouse Gas Emissions Abatement using Irish Farm-Level Data AgEcon
Breen, James P.; Donellan, Trevor.
Agriculture in Ireland accounts for a higher proportion of greenhouse gas (GHG) emissions than in any other EU member state. Furthermore as part of the EU’s commitment to reduce emissions by 20 percent by 2020, Ireland is one of the few countries who will have to cuts its 2005 GHG emissions level by the full 20 percent. Given the magnitude of the cut in national emissions that is required and the size of agriculture’s contribution to Ireland’s total emissions, the agriculture sector has been identified by some parties as a sector that could make a significant contribution to achieving the national target. In order to evaluate the impact on Irish farmers of reducing GHG emissions it is necessary to first estimate the marginal cost of emissions abatement....
Tipo: Conference Paper or Presentation Palavras-chave: Keywords: Farm-Level; Greenhouse Gas Emissions; Marginal Abatement Cost Curve; Agricultural and Food Policy; Q12; Q18; Q52.
Ano: 2009 URL: http://purl.umn.edu/50938
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Breaking the Impasse in International Climate Negotiations: A New Direction for Currently Flawed Negotiations and a Roadmap for China to 2050 AgEcon
Zhang, ZhongXiang.
China’s unilateral pledge to cut its carbon intensity by 40-45 percent by 2020 relative to its 2005 levels raises both the stringency issue, and given that China’s pledge is in the form of carbon intensity, reliability issues concerning China’s statistics on energy and GDP. Moreover, as long as China’s commitments differ in form from those of other major greenhouse gas emitters, China is constantly confronted with both criticism on its carbon intensity commitment being less stringent and the threats of trade measures. In response to these concerns and to put China in a positive position, this paper will map out a realistic roadmap for China’s specific climate commitments towards 2050, with its main distinguishing features including China taking on absolute...
Tipo: Working or Discussion Paper Palavras-chave: Carbon Intensity; Post-Copenhagen Climate Change Negotiations; Climate Commitments; China; Environmental Economics and Policy; Q42; Q43; Q48; Q52; Q53; Q54; Q58.
Ano: 2011 URL: http://purl.umn.edu/108263
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Renewable Energy Subsidies: Second-Best Policy or Fatal Aberration for Mitigation? AgEcon
Kalkuhl, Matthias; Edenhofer, Ottmar; Lessmann, Kai.
This paper evaluates the consequences of renewable energy policies on welfare, resource rents and energy costs in a world where carbon pricing is imperfect and the regulator seeks to limit emissions to a (cumulative) target. We use a global general equilibrium model with an intertemporal fossil resource sector. We calculate the optimal second-best renewable energy subsidy and compare the resulting welfare level with an efficient first-best carbon pricing policy. If carbon pricing is permanently missing, mitigation costs increase by a multiple (compared to the optimal carbon pricing policy) for a wide range of parameters describing extraction costs, renewable energy costs, substitution possibilities and normative attitudes. Furthermore, we show that small...
Tipo: Working or Discussion Paper Palavras-chave: Feed-in-Tariff; Carbon Trust; Carbon Pricing; Supply-Side Dynamics; Green Paradox; Climate Policy; Resource /Energy Economics and Policy; Q4; Q52; Q54; Q58; D58; H21.
Ano: 2011 URL: http://purl.umn.edu/108261
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The sampling bias in multi-agent simulation models AgEcon
Buysse, Jeroen; Frija, Aymen; Van der Straeten, Bart; Nolte, Stephan; Lauwers, Ludwig H.; Claeys, Dakerlia; Van Huylenbroeck, Guido.
For practical considerations, it is in some case impossible to simulate MAS models at population level. The current paper shows that MAS models applied to samples with heterogeneous costs of interactions between agents have biased results. Heterogeneous costs of interactions in MAS models can come from the spatial dimension in MAS models or from fixed costs per interaction. The paper presents two correction procedures to remove the sampling bias and to increase the reliability of the outcome. The correction procedures can be very promising for future applications of MAS models because it becomes possible to deploy more complex models without bias on more detailed datasets that are only available at sample level, which will be the case for country- or...
Tipo: Conference Paper or Presentation Palavras-chave: MAS; Bias; Correction; Resampling; Agricultural and Food Policy; Q12; Q18; Q51; Q52.
Ano: 2011 URL: http://purl.umn.edu/99599
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MARGINAL ABATEMENT COST CURVES FOR UK AGRICULTURAL GREENHOUSE GAS EMISSIONS AgEcon
Moran, Dominic; MacLeod, Michael J.; Wall, Eileen; Eory, Vera; McVittie, Alistair; Barnes, Andrew Peter; Rees, Robert; Topp, Cairistiona; Moxey, Andrew.
This paper addresses the challenge of developing a ‘bottom-up’ marginal abatement cost curve (MACC) for greenhouse gas emissions from UK agriculture. A MACC illustrates the costs of specific crop, soil, and livestock abatement measures against a ‘‘business as usual’’ scenario. The results indicate that in 2022 under a specific policy scenario, around 5.38 MtCO2 equivalent (e) could be abated at negative or zero cost. A further 17% of agricultural GHG emissions (7.85 MtCO2e) could be abated at a lower unit cost than the UK Government’s 2022 shadow price of carbon (£34 (tCO2e)-1). The paper discusses a range of methodological hurdles that complicate cost-effectiveness appraisal of abatement in agriculture relative to other sectors.
Tipo: Conference Paper or Presentation Palavras-chave: Climate change; Marginal abatement costs; Agriculture; Environmental Economics and Policy; Resource /Energy Economics and Policy; Q52; Q 54; Q58.
Ano: 2010 URL: http://purl.umn.edu/91399
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Simulating a Market for Tradable Greenhouse Gas Emissions Permits amongst Irish Farmers AgEcon
Breen, James P..
Research into Greenhouse Gas (GHG) emissions from Irish agriculture has focused on two main themes (i) projecting future emission levels and (ii) devising abatement strategies at the farm level such as changes in animal diet, better waste management and or changes in farm management practices. These abatement strategies will have costs associated with them some of which, such as capital investment or reducing livestock numbers, may be substantial. However economic theory indicates that market based solutions such as tradable emissions permits (TEP’s) are the least cost means of achieving desired reductions in emissions. To date within Europe a regulatory approach has been favoured when trying to curtail emissions from agriculture, the Nitrates Directive...
Tipo: Conference Paper or Presentation Palavras-chave: Farm level modelling; Greenhouse gas emissions; Tradable emissions permits; Q12; Q52.
Ano: 2008 URL: http://purl.umn.edu/36770
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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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