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A pilot project for indigenous forest reversion AgEcon
Funk, Jason; Kerr, Suzi; Hendy, Joanna.
This paper describes preliminary work on establishing a pilot project for carbon sequestration. The project is intended to simulate the structure of the Permanent Forest Sinks Initiative, a program that may extend to the national level under the supervision of the Ministry of Agriculture and Forestry. In the process of establishing the project, we will identify opportunities and barriers for landowners to engage in the management system of “carbon farming”. We will also use the results of the process to inform policymakers of potential improvements to the Permanent Forest Sinks Initiative and to demonstrate to landowners the benefits of this management system.
Tipo: Conference Paper or Presentation Palavras-chave: Agricultural and Food Policy; Crop Production/Industries; Environmental Economics and Policy; Farm Management; International Relations/Trade; Land Economics/Use.
Ano: 2005 URL: http://purl.umn.edu/98493
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Assessing design options for a Nutrient Trading System using an integrated model AgEcon
Lock, Kelly; Kerr, Suzi; Cox, Tim; Rutherford, Kit.
Water quality in many New Zealand waterways is currently declining leading to lakes and rivers being closed for contact recreation such as swimming and potentially threatening our clean, green image. Much of this decline is associated with an increase in the nutrient loss from agriculture in the surrounding catchment. Nutrient trading systems are being considered in a number of catchments across the county to restrict the nutrient loss entering the waterways and thus improve the water quality. Such a system is currently being implemented in Lake Taupo and Environment Bay of Plenty is exploring actively the use of such a system to manage nutrient loss in the Lake Rotorua catchment. Yet the design of such systems is challenging. In a collaborative effort...
Tipo: Conference Paper or Presentation Palavras-chave: Environmental Economics and Policy; Food Consumption/Nutrition/Food Safety; Research and Development/Tech Change/Emerging Technologies.
Ano: 2008 URL: http://purl.umn.edu/96443
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Auctioning Greenhouse Gas Emissions Permits in Australia AgEcon
Betz, Regina; Seifert, Stefan; Cramton, Peter; Kerr, Suzi.
Allocating permits based on individual historical emissions (‘grandfathering’), or industry benchmark data, is an important design aspect of an emissions trading scheme. Free permit allocation has proven complex and inefficient (particularly in the European Union) with distribution implications also politically difficult to justify. For these reasons, auctioning emissions permits has become more popular than allocating permits. The European Union is now moving towards auctioning more than 50 per cent of all permits in 2013. In the US, the Regional Greenhouse Gas Initiative (RGGI) has started with auctioning 100 per cent of permits. The Australian proposal for a Carbon Pollution Reduction Scheme (CPRS) also provides for auctioning a significant share of...
Tipo: Report Palavras-chave: Climate policy; Greenhouse gases; Auctions; Emissions trading; Environmental Economics and Policy; Resource /Energy Economics and Policy.
Ano: 2009 URL: http://purl.umn.edu/94878
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Bigger is Better: Avoided Deforestation Offsets in the Face of Adverse Selection AgEcon
van Benthem, Arthur A.; Kerr, Suzi.
Voluntary opt-in programs to reduce emissions in unregulated sectors or countries have spurred considerable discussion. Since any regulator will make errors in predicting baselines and participants will self-select into the program, adverse selection will reduce efficiency and possibly environmental integrity. In contrast, pure subsidies lead to full participation but require large financial transfers. We present a simple model to analyze this trade-off between adverse selection and infra-marginal transfers. We find that increasing the scale of voluntary programs both improves efficiency and reduces transfers. We show that discounting (paying less than full value for offsets) is inefficient and cannot be used to reduce the fraction of offsets that are...
Tipo: Conference Paper or Presentation Palavras-chave: Environmental Economics and Policy; Deforestation; Offsets; Adverse selection; REDD; Climate change policy; Opt-in..
Ano: 2011 URL: http://purl.umn.edu/100569
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Effects of Poverty on Deforestation: Distinguishing Behavior from Location AgEcon
Kerr, Suzi; Pfaff, Alexander S.P.; Cavatassi, Romina; Davis, Benjamin; Lipper, Leslie; Sanchez, Arturo; Timmins, Jason.
We summarize existing theoretical claims linking poverty to rates of deforestation and then examine this linkage empirically for Costa Rica during the 20th century using an econometric approach that addresses the irreversibilities in deforestation. Our data facilitate an empirical analysis of the implications for deforestation of where the poor live. Without controlling for this, impacts of poverty per se are confounded by richer areas being different from the areas inhabited by the poor, who we expect to find on more marginal lands, for instance less profitable lands. Controlling for locations' characteristics, we find that poorer areas are cleared more rapidly. This result suggests that poverty reduction aids forest conservation.
Tipo: Working or Discussion Paper Palavras-chave: Land Use; Deforestation; Poverty; Climate Change; Development; Costa Rica.; Food Security and Poverty; I32; O13; Q51; Q54; Q56.
Ano: 2004 URL: http://purl.umn.edu/23792
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Fishing Quota Markets AgEcon
Newell, Richard G.; Sanchirico, James N.; Kerr, Suzi.
Fisheries worldwide continue to suffer from the negative consequences of open access. In 1986, New Zealand responded by establishing an individual transferable quota (ITQ) system that by 1998 included 33 species and more than 150 markets for fishing quotas. We assess these markets in terms of trends in market activity, price dispersion, and the fundamentals determining quota prices. We find that market activity is sufficiently high to support a competitive market and that price dispersion has decreased over time. Using a 15-year panel dataset, we also find evidence of economically rational behavior through the relationship between quota lease and sale prices and fishing output and input prices, ecological variability, and market interest rates. Controlling...
Tipo: Working or Discussion Paper Palavras-chave: Tradable permits; Individual transferable quota; Fisheries; Policy; Resource /Energy Economics and Policy; Q22; Q28; D40; L10.
Ano: 2002 URL: http://purl.umn.edu/10451
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Greenhouse Gas Emission Factor Module: Land Use in Rural New Zealand—Climate Version 1 AgEcon
Hendy, Joanna; Kerr, Suzi.
Several different New Zealand economic models produce measures of rural economic activity that have greenhouse gas implications. For climate change analysis, models need to translate economic activity into greenhouse gas emissions. This document estimates functions and creates projections for land-use related greenhouse gas emissions per unit of economic activity that are simple; are based on readily available data and strong science; are consistent with the national inventory in 2002; evolve so that implied net emissions approximately match past inventory totals (1990–2002); and can be linked easily to a variety of models so they can be used in simulations. We estimate dynamic greenhouse gas emission functions for five land uses: dairy, sheep, beef,...
Tipo: Conference Paper or Presentation Palavras-chave: Climate change; Greenhouse gases; Methane; Nitrous oxide; Carbon dioxide; Scrub; Forest; Agricultural and Food Policy; Crop Production/Industries; Environmental Economics and Policy; Food Consumption/Nutrition/Food Safety; International Relations/Trade; Research Methods/ Statistical Methods; Resource /Energy Economics and Policy.
Ano: 2005 URL: http://purl.umn.edu/98501
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Greenhouse gases and Nutrients: The Interactions Between Concurrent New Zealand Trading Systems AgEcon
Kerr, Suzi; Kennedy, Marianna.
Emissions trading and nutrient trading interact in critical ways. The agricultural sector is a major emitter of both nutrients and greenhouse gases in New Zealand. Thus the simultaneous implementation of such systems will have a large impact on the farmers in affected catchments. Many of the mitigation options that are available to farmers, for example reducing animal numbers, will reduce both nutrient loss and greenhouse gas emissions. Thus the combined cost of control could be much less than the sum of the costs of the separate systems. The allocation of units under each system will also affect the same people. Monitoring systems for each pollutant could have common elements but could also impose a double burden. The interactions between the two systems...
Tipo: Conference Paper or Presentation Palavras-chave: Agribusiness; Agricultural and Food Policy; Environmental Economics and Policy; Farm Management; Resource /Energy Economics and Policy.
Ano: 2008 URL: http://purl.umn.edu/96444
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Modelling Land Use in Rural New Zealand AgEcon
Olssen, Alex; Kerr, Suzi.
Regional Councils are primarily responsible for environmental management, as specified in the Resource Management Act (RMA), 1991. The Local Government Act 2002 has an integrative component, requiring consideration of social, economic, environmental and cultural well-being of their communities. These two Acts are interesting, as their combination is shaping new governance structures within New Zealand. Different types of policy instruments are available to Regional Councils while carrying out their functions: regulatory, economic and voluntary. The 1990s are characterized by ‘first generation Plans’ of the RMA, which were highly rule focused. In the 2000s a marked shift occurred, mainstreaming ‘community’ and participative approaches to policy. This...
Tipo: Conference Paper or Presentation Palavras-chave: Land use change; New Zealand; National; Time series; Agricultural and Food Policy; Land Economics/Use; Production Economics; Q15; Q24.
Ano: 2011 URL: http://purl.umn.edu/115413
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Nitrogen Trading in Lake Taupo: An Analysis and Evaluation of an Innovative Water Management Strategy AgEcon
Duhon, Madeline; Young, Justine; Kerr, Suzi.
This paper provides a concise introduction to and evaluation of the Lake Taupo nitrogen cap and trade program established as part of Waikato Regional Council's recent Regional Plan Variation Five. The policy establishes a catchment-wide cap on nitrogen losses by allocating farmers individual nitrogen discharge allowances and allowing those farmers flexibility to trade allowances amongst themselves and to sell allowances to a public fund while remaining within the overall catchment cap. This paper seeks to explain the structure and evolution of the nitrogen trading market and to analyse its impact thus far by drawing on a wide variety of relevant perspectives. Research drawn from written material and basic quantitative data provide the basis for analysing...
Tipo: Conference Paper or Presentation Palavras-chave: Environmental Economics and Policy; Land Economics/Use.
Ano: 2011 URL: http://purl.umn.edu/115353
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Optimizing Voluntary Deforestation Policy in the Face of Adverse Selection and Costly Transfers AgEcon
van Benthem, Arthur A.; Kerr, Suzi.
As part of international climate change policy, voluntary opt-in programs to reduce emissions in unregulated sectors or countries have spurred considerable discussion. Since any regulator will make errors in predicting baselines, adverse selection will reduce efficiency since participants will self-select into the program. In contrast, pure subsidies lead to full participation but require large financial transfers; this is a particular challenge across countries. A global social planner facing costless transfers would choose such a subsidy to maximize efficiency. However, any actual policy needs to be individually rational for both the buying (industrialized) and selling (developing) country. We present a simple model to analyze this trade-off between...
Tipo: Conference Paper or Presentation Palavras-chave: Voluntary opt-in; Adverse selection; Deforestation; Offsets; Emissions trading; REDD; Agricultural and Food Policy; Community/Rural/Urban Development; Environmental Economics and Policy; Land Economics/Use; Q54; Q56.
Ano: 2010 URL: http://purl.umn.edu/96813
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Policy-Induced Technology Adoption: Evidence from the U.S. Lead Phasedown AgEcon
Kerr, Suzi; Newell, Richard G..
The theory of environmental regulation suggests that economic instruments, such as taxes and tradable permits, create more effective technology adoption incentives than conventional regulatory standards. We explore this issue for an important industry undergoing technological responses to a dramatic decrease in allowed pollution levels - the petroleum industry's phasedown of lead in gasoline. Using a panel of refineries from 1971 to 1995, we provide some of the first direct evidence that alternative policies affect the pattern of adoption in expected ways. Importantly, we find that the tradable permit system used during the lead phasedown provided incentives for more efficient technology adoption decisions. Where environmentally appropriate, this suggests...
Tipo: Working or Discussion Paper Palavras-chave: Technology; Adoption; Diffusion; Environment; Regulation; Lead; Gasoline; Tradable permit; Incentive-based policy; Research and Development/Tech Change/Emerging Technologies; C41; L71; O31; O33; Q28; Q48.
Ano: 2001 URL: http://purl.umn.edu/10834
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Potential Scrub Changes and Its Spatial Allocation under the New Zealand Emission Trading System AgEcon
Zhang, Wei; Power, William; Kerr, Suzi.
Under the New Zealand Emission Trading System (NZETS), post-1989 forestry land (the exotic or indigenous forest land that was not used for plantation on 31 December 1989) in New Zealand is eligible for reward for each tonne of CO2-eqv sequestrated by reverting from pasture to indigenous scrub. We use the Land Use in Rural New Zealand (LURNZ) model to conduct 2 simulations assuming that one tonne of CO2-eqv costs $25; The reference case is that no one has entered the NZETS, the other scenario is that the whole agriculture sector and indigenous forest (but not plantation) have entered the ETS. Each simulation estimates the amount of land use changes in dairy, sheep-beef and scrub from 2008 to 2015. By comparing these simulations, we identify the current use...
Tipo: Working or Discussion Paper Palavras-chave: Emission trading system; Scrub reversion; Agriculture; Environmental Economics and Policy; Land Economics/Use.
Ano: 2009 URL: http://purl.umn.edu/50896
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Sheep and Beef Production Costs Across New Zealand: Introducing the Spatial Dimension AgEcon
Lock, Kelly; Hendy, Joanna; Kerr, Suzi.
Motu is currently developing a dataset of production costs relating to different rural land uses, which we can use to help explain historical land-use trends at a Territorial Authority level. The Meat and Wool Economic Service farm survey provides a rich database containing physical and financial data for New Zealand sheep and beef farms including detailed information on average farm expenditure, from at least 1980. But while this dataset provides extensive information for 8 farm classes and 5 regions, the actual location of the farms within each class is not known. So, we have developed an algorithm that generates a map of potential farm classes utilising supplementary information on farm location from QVNZ and a land productivity map developed by Baisden...
Tipo: Conference Paper or Presentation Palavras-chave: Spatial allocation; Production costs; Sheep and beef farming; Production Economics.
Ano: 2006 URL: http://purl.umn.edu/31952
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Short term effects of moderate carbon prices on land use in the New Zealand emissions trading system: LURNZ-climate land use change simulations AgEcon
Kerr, Suzi; Zhang, Wei; Power, William.
The New Zealand Emissions Trading Scheme (NZ ETS) was introduced through the Climate Change Response Act in September 2008 and remains in force. The forestry sector has been directly affected by the NZ ETS since 1 January 2008 and stationary energy, liquid fuels and industrial emissions have been affected since 1 July 2010. When it is fully implemented in 2015 it will cover all sources and gases including agricultural emissions. Using the Land Use in Rural New Zealand model (LURNZ), we simulate rural land use changes that could be driven by the NZETS in order that we can explore their potential implications for emissions and removals (sequestration) and rural incomes and land values. This paper documents our simulation methods and presents short term (up...
Tipo: Conference Paper or Presentation Palavras-chave: Crop Production/Industries; Environmental Economics and Policy; Industrial Organization; International Relations/Trade; Land Economics/Use; Livestock Production/Industries; Risk and Uncertainty.
Ano: 2010 URL: http://purl.umn.edu/96941
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The likely regional impacts of an agricultural emissions policy in New Zealand: Preliminary analysis AgEcon
Sin, Isabelle; Brunton, Emma; Hendy, Joanna; Kerr, Suzi.
Hendy and Kerr (2005b) find that an emissions charge on agricultural methane and nitrous oxide of $25 per tonne of carbon dioxide (CO2) equivalent would be likely to reduce New Zealand‘s net land-use related emissions for commitment period one in the order of 3%, with full accounting. The costs per farmer and as a percentage of profit would be very high. This paper considers the regional impacts of such a policy in New Zealand by allocating the emission charge across space according to the location of animals. We then combine our emissions charge information with data on the socio-economic characteristics of the affected areas. Obviously rural areas are heavily affected. In many respects, for example median income, ethnic mix, and percentage of working...
Tipo: Conference Paper or Presentation Palavras-chave: Climate change; Land use; Social impacts; Methane; Nitrous oxide; Dairy; Sheep; Beef; Distribution of costs; Regional; Agribusiness; Community/Rural/Urban Development; Crop Production/Industries; Environmental Economics and Policy; Farm Management; Land Economics/Use; Livestock Production/Industries; Q25; Q28; R14.
Ano: 2005 URL: http://purl.umn.edu/98506
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Towards Design For a Nutrient Trading Programme to Improve Water Quality in Lake Rotorua AgEcon
Kerr, Suzi; Lauder, Glen; Fairman, David.
This paper explores how to enhance the role for academic research (natural sciences, economics and their integration; and stakeholder management) within the development and implementation of water quality policy in New Zealand. Our focus is on the use of market based instruments and particularly nutrient trading programmes, which are one important part of the potential tool kit to address these issues. We discuss why nutrient trading might be an appropriate instrument for the Lake Rotorua catchment. We survey the existing literature and then outline the outstanding scientific, economic and governance questions that need to be addressed to design an effective trading programme. Finally we discuss how to design a process to address these questions drawing on...
Tipo: Conference Paper or Presentation Palavras-chave: Water quality; Emissions trading; Non-point source pollution; Nutrients; Rotorua; Communication; Learning; Resource /Energy Economics and Policy; Q53; Q57; Q58; A12.
Ano: 2007 URL: http://purl.umn.edu/9462
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Tradable Carbon Permit Auctions: How and Why to Auction Not Grandfather AgEcon
Cramton, Peter; Kerr, Suzi.
An auction of carbon permits is the best way to achieve carbon caps set by international negotiation to limit global climate change. To minimize administrative costs, permits would be required at the level of oil refineries, natural gas pipe lines, liquid sellers, and coal processing plants. To maximize liquidity in secondary markets, permits would be fully tradable and bankable. The government would conduct quarterly auctions. A standard ascending-clock auction in which price is gradually raised until there is no excess demand would provide reliable price discovery. An auction is preferred to grandfathering (giving polluters permits in proportion to past pollution), because it allows reduced tax distortions, provides more flexibility in distribution of...
Tipo: Working or Discussion Paper Palavras-chave: Greenhouse; Climate change; Carbon trading; Auction; Ascending-clock; Tradable permits; Environmental Economics and Policy; Q3; D4.
Ano: 1998 URL: http://purl.umn.edu/10668
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Trading efficiency in water quality markets AgEcon
McDonald, Hugh J.; Kennedy, Marianna; Ngawhika, Simon; Kerr, Suzi.
A crucial factor in the success of any water quality trading market is its ability to cost-effectively reallocate nutrient allowances from initial holders to those users who find them most valuable; the market's trading efficiency. We explore causes of and solutions to trading inefficiency by assessing the impact on participant transaction costs and the tradeoffs that occur as a result of policy design decisions. Differing impacts of baseline-credit and cap-and-trade markets, the impact of trading rules and monitoring regimes are discussed in this endeavour. Possible solutions of increased information flows and regulatory certainty are also discussed. We then apply this framework to three existing water quality trading schemes; two from the US, and one...
Tipo: Conference Paper or Presentation Palavras-chave: Nutrient trading; Trading efficiency; Water quality markets; Transaction costs; Community/Rural/Urban Development; Environmental Economics and Policy; Health Economics and Policy; International Relations/Trade.
Ano: 2010 URL: http://purl.umn.edu/96949
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Using Emissions Trading to Regulate U.S. Greenhouse Gas Emissions: An Overview of Policy Design and Implementation Issues AgEcon
Fischer, Carolyn; Kerr, Suzi; Toman, Michael.
In Kyoto in 1997, the US government agreed that between 2008 and 2012 it would limit average annual emissions of greenhouse gases (GHGs) to seven percent below 1990 levels. As participants in the climate policy debate consider various means by which limits on US GHG emissions might be undertaken in the wake of the Kyoto agreement, there is considerable interest but also some confusion about how a GHG trading program could be organized and operated in practice. In this paper we address several aspects of policy design for a US system, such as who and what is covered by regulation, the organization of the trading system, how carbon permits are allocated, and how a system could be initiated and changed over time. The paper synthesizes existing analyses and...
Tipo: Working or Discussion Paper Palavras-chave: Climate change; Emissions trading; Environmental policy design; Environmental Economics and Policy; Q25; Q28.
Ano: 1998 URL: http://purl.umn.edu/10501
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