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A proposal to correct external effects in the coffee market: a tax on regular coffee and tea to subsidise the fair trade coffee AgEcon
Galarraga, Ibon; Markandya, Anil.
This paper justifies the need to introduce a tax on regular coffee drinkers in the UK to subsidise the fair trade/organic coffee production. This policy will allow to take full account of the negative external effect of regular coffee production while internalising the positive effect of fair trade initiatives. Designing such a policy is possible and the benefits of it can be calculated. This paper shows how. Propuesta para corregir las externalidades en el mercado de café: un impuesto sobre el te y el café regular y una subvención sobre el café de Comercio Justo. El presente artículo justifica la necesidad de introducir un impuesto sobre los consumidores de café y té en el Reino Unido para subvencionar la producción de café orgánico y de Comercio Justo....
Tipo: Journal Article Palavras-chave: Coffee market; Fair trade; International Relations/Trade; Q18; H23.
Ano: 2006 URL: http://purl.umn.edu/7991
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Abatement Cost Uncertainty and Policy Instrument Selection under a Stringent Climate Policy. A Dynamic Analysis AgEcon
Bosetti, Valentina; Golub, Alexander; Markandya, Anil; Massetti, Emanuele; Tavoni, Massimo.
This paper investigates the relative economic and environmental outcomes of price versus quantity mechanisms to control GHG emissions when abatement costs are uncertain. In particular, we evaluate the impacts on policy costs, CO2 emissions and energy R&D for a stringent mitigation target of 550 ppmv CO2 equivalent (i.e. 450 for CO2 only) concentrations. The analysis is performed in an optimal growth framework via Monte Carlo simulations of the integrated assessment model WITCH (World Induced Technical Change Hybrid). Results indicate that the price instrument stochastically dominates the quantity instrument when a stringent stabilization policy is in place.
Tipo: Conference Paper or Presentation Palavras-chave: Abatement Costs; Climate Policy; Environmental Economics and Policy; H2; C6; Q5.
Ano: 2008 URL: http://purl.umn.edu/6383
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Adaptation approaches to climate change in China: An operational framework AgEcon
Jiahua, Pan; Yan, Zheng; Markandya, Anil.
Climate change poses great risks for China, which makes adaptation an essential response. However, adaptation planning and implementation are still at a preliminary stage with respect to the theoretical framework and methodology. This article focuses on the status, problems and basic needs as regards adaptation to climate change, and outlines the operational framework that the government is seeking to pursue for China’s adapting to climate change. The conclusion is that, to satisfy the basic needs of development, it is necessary to clarify development-oriented and incremental adaptation. Furthermore measures to enhance adaptive capacity can be classified as infrastructure-based, technology-based and institutional. Lastly the authors stress the importance...
Tipo: Journal Article Palavras-chave: Adaptation; Incremental adaptation; Development-oriented adaptation; Approaches for adaptation; Economic analysis of adaptation; Environmental Economics and Policy; Q54; Q56; Q58.
Ano: 2011 URL: http://purl.umn.edu/117619
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Air Pollution Costs in Ukraine AgEcon
Strukova, Elena; Golub, Alexander; Markandya, Anil.
The paper presents estimation of the health losses from urban air pollution in Ukraine. The methodology developed by US EPA and adjusted in Russia for Eastern European transition countries was applied for health risk assessment. PM2.5 was identified as the major source of human health risk, based on experience from the Russian studies. In the absence of reliable computed concentrations of PM2.5, the study was based on monitoring data of total suspended particle (TSP) emissions in Ukraine. Additional cases of mortality and morbidity were calculated based on reporting data on TSP concentration that was recalculated into PM2.5. Then the concentration–response function was applied to estimate individual risk. Next, individual risk was applied to the...
Tipo: Working or Discussion Paper Palavras-chave: Environmental Economics and Policy.
Ano: 2006 URL: http://purl.umn.edu/12206
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Aportaciones desde la economía de la adaptación a la toma de decisiones sobre cambio climático: un ejemplo para la Comunidad Autónoma del País Vasco AgEcon
Galarraga, Ibon; Oses, Nuria; Markandya, Anil; Chiabai, Aline; Khantun, Kaysara.
As a consequence of Climate Change sea level rise as well as a change in the intensity and propensity of rain are expected in the Basque Country. Valuing the costs and benefits of adapting to these changes becomes an important piece of information for the planning process. This paper develops two methodological frameworks. The first one devoted to estimating the economic impacts to urban areas of an increase in the risk of flooding. The values estimated for the Nervión river in the city of Amurrio (Álava) indicate that the average expected damage will increase in 15 per cent as a consequence of CC (from €56,097 to €64,451). For an extreme episode the total loss could increase to €20 million. The second framework is oriented towards the valuation of the...
Tipo: Journal Article Palavras-chave: Climate change impacts; Economic valuation; Environmental Economics and Policy; Q51; Q54.
Ano: 2011 URL: http://purl.umn.edu/117620
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Coastal Zone Management in the Mediterranean: Legal and Economic Perspectives AgEcon
Markandya, Anil; Arnold, S.; Cassinelli, Mariaester; Taylor, Tim J..
This paper examines existing measures taken to protect the coastal zones of the Mediterranean Sea and assesses their success. A summary of the main pressures facing these zones is given, followed by an analysis of the legislation covering coastal zone development in ten countries: Algeria, Croatia, Egypt, France, Israel, Italy, Malta, Spain, Tunisia and Turkey. We find that not all of these states have legislation specifically covering coastal zones, but there is concern in all areas that the legislation is not working, We also look at the costs and benefits of controlling coastal development. Firstly, a literature review of valuation studies identifies a range of values placed on developed and undeveloped coastline for both users and local property...
Tipo: Working or Discussion Paper Palavras-chave: Coastal Zone Management; Legislation; Littoral; Mediterranean; Recreation; Environmental Economics and Policy; Q5.
Ano: 2009 URL: http://purl.umn.edu/54290
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Eastern Europe and the Former Soviet Union since the Fall of the Berlin Wall: Review of the Changes in the Environment and Natural Resources AgEcon
Markandya, Anil; Chou, Wan-Jung.
This paper reviews the environmental record of the transition countries of Eastern Europe and Central Asia since the fall of the Berlin Wall, with a focus on areas of key concern to public policy at the present time. With the impacts of environment on public health being given the highest priority, we examined several associated health indicators at the national level, as well as looking at important environmental issues at the local level. In this respect, we focus on environmental problems related to air and water quality, land contamination, and solid waste management. Despite showing a highly differentiated performance across the region, the results suggest that inadequate environmental management seen in several of the transition countries in the past...
Tipo: Working or Discussion Paper Palavras-chave: Eastern Europe; Environmental Record; Public Health; Environmental Economics and Policy; N34; N54; I18.
Ano: 2010 URL: http://purl.umn.edu/90951
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Economic techniques to estimate the demand for sustainable products: a case study for fair trade and organic coffee in the United Kingdom AgEcon
Galarraga, Ibon; Markandya, Anil.
The hedonic approach is used in this paper to estimate how much is paid for the fair trade/organic characteristic of the coffee in the British market. This information is later combined with the Quantity Based Demand System (QBDS) model -developed by the authors- and the Almost Ideal Demand System (AIDS) (Deaton and Muellbauer, 1980) to completely determine the demand function for different coffees. The QBDS model is easier to handle and less data demanding than the AIDS model in this study. Resumen El presente artículo se basa en la utilización del método hedónico para la estimación de la cantidad que se paga por la característica de "Orgánico/Comercio Justo" del café en el mercado británico. La información obtenida se combina después con el modelo...
Tipo: Journal Article Palavras-chave: Demand systems; Hedonic method; Coffee demand; Labelling; C13; C21; D12.
Ano: 2004 URL: http://purl.umn.edu/28732
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Economic Valuation of Forest Ecosystem Services: Methodology and Monetary Estimates AgEcon
Chiabai, Aline; Travisi, Chiara M.; Ding, Helen; Markandya, Anil; Nunes, Paulo A.L.D..
By using ad hoc value transfer protocols, this paper offers a methodological contribution and provides accurate per hectare estimates of the economic value of some selected ecosystem services for all forest biomes in the world, identified following the Millennium Ecosystem Assessment taxonomy MEA. The research also estimates potential total economic losses from policy inaction in year 2050. Final results show that total losses are significant. The total figure is €78 billion, the greatest losses coming from North America and Mexico, followed by Africa, Russia and some Asiatic countries. Most of this loss is attributable to provisioning services and carbon sequestration, while only a minor part is due to loss of cultural services. In terms of biomes the...
Tipo: Working or Discussion Paper Palavras-chave: Forest; Ecosystem Services; Biodiversity; Valuation; Value Transfer; Environmental Economics and Policy; O13; Q23; Q26; Q51; Q54; Q57.
Ano: 2009 URL: http://purl.umn.edu/50361
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Estimating the Value of Safety with Labor Market Data: Are the Results Trustworthy? AgEcon
Hintermann, Beat; Alberini, Anna; Markandya, Anil.
We use a panel dataset of UK workers to look for evidence of compensating wage differentials for workplace risk. Risk data are available at the four-digit industry level or at the three-digit occupation level. We discuss various econometric problems associated with the hedonic wage approach, namely measurement error, instability of the estimates to specification changes, and endogeneity. We find that if we assume a classical measurement error, the true risk signal would be completely drowned out in our data, which would imply a severe downward bias of the OLS coefficient on risk. But this prediction is at odds with our OLS estimates of the VSL, which are large, especially for blue collar workers. Further, the coefficient on risk changes varies dramatically...
Tipo: Working or Discussion Paper Palavras-chave: Labor and Human Capital.
Ano: 2006 URL: http://purl.umn.edu/12213
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Evaluating the Empirical Performance of Alternative Econometric Models for Oil Price Forecasting AgEcon
Scarpa, Elisa; Longo, Chiara; Manera, Matteo; Markandya, Anil.
The relevance of oil in the world economy explains why considerable effort has been devoted to the development of different types of econometric models for oil price forecasting. Several specifications have been proposed in the economic literature. Some are based on financial theory and concentrate on the relationship between spot and futures prices (“financial” models). Others assign a key role to variables explaining the characteristics of the physical oil market (“structural” models). The empirical literature is very far from any consensus about the appropriate model for oil price forecasting that should be implemented. Relative to the previous literature, this paper is novel in several respects. First of all, we test and systematically evaluate the...
Tipo: Working or Discussion Paper Palavras-chave: Resource /Energy Economics and Policy.
Ano: 2007 URL: http://purl.umn.edu/12118
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GAINS OF REGIONAL COOPERATION: ENVIRONMENTAL PROBLEMS AND SOLUTIONS AgEcon
Markandya, Anil.
Cooperation between the states of the Caucasus and Central Asia is paramount in solving the region's environmental problems. Given the acute socio-economic difficulties they face, their slow progress is understandable. Serious environmental and socio-economic consequences cumulate as the neglect persists. Increased oil and gas revenues (for those who have access to these resources) cannot ease such consequences. The exploitation of oil revenues may benefit the national economy, but it does not generally provide enough for the poor local communities that depend on the natural resources of the Caspian for their livelihoods. The international community must therefore help to promote cooperation within the region. The Caspian Environment Program provides an...
Tipo: Working or Discussion Paper Palavras-chave: Environmental Economics and Policy.
Ano: 2004 URL: http://purl.umn.edu/18723
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Households’ WTP for the Reliability of Gas Supply AgEcon
Chou, Wan-Jung; Bigano, Andrea; Hunt, Alistair; La Branche, Stephane; Markandya, Anil; Pierfederici, Roberta.
The security of natural gas supply is an important issue for all EU countries due to the region’s heavy dependence on imported supply sources and in light of energy demand for gas that is continuously increasing. Discussions have emphasised strategies for securing the supply at the macro level, e.g. diversification in supply sources, increase in storage capacity, etc. By contrast, consumers’ demand for the reliability of gas supply is rarely investigated. Hence this study was conducted to examine the economic implications associated with the security of gas supply directly to domestic consumers. Based on the choice experiment approach, household surveys were conducted in France, Italy and the UK. The results confirmed that the degree of the economic impact...
Tipo: Working or Discussion Paper Palavras-chave: Energy Security; Gas Supply; Households; Willingness to Pay; Choice Experiment; EU; Resource /Energy Economics and Policy; C35; C83; C93; D12; Q41.
Ano: 2011 URL: http://purl.umn.edu/115740
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Impure Public Technologies and Environmental Policy AgEcon
Markandya, Anil; Rubbelke, Dirk T.G..
Analyses of public goods regularly address the case of pure public goods. However, a large number of (international) public goods exhibit characteristics of different degrees of publicness, i.e. they are impure public goods. In our analysis of transfers helping to overcome the inefficient provision of such goods, we therefore apply the Lancastrian characteristics approach. In contrast to the existing literature, we consider the case of a continuum of impure public goods. We employ the example of international conditional transfers targeting to overcome suboptimal low climate protection efforts by influencing the abatement technology choice of countries.
Tipo: Working or Discussion Paper Palavras-chave: Impure Public Goods; Lancastrian Characteristics Approach; Conditional Transfers; Ancillary Benefits of Climate Policy; Environmental Economics and Policy; H87; Q54.
Ano: 2008 URL: http://purl.umn.edu/44226
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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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Oil Price Forecast Evaluation with Flexible Loss Functions AgEcon
Bastianin, Andrea; Manera, Matteo; Markandya, Anil; Scarpa, Elisa.
The empirical literature is very far from any consensus about the appropriate model for oil price forecasting that should be implemented. Relative to the previous literature, this paper is novel in several respects. First of all, we test and systematically evaluate the ability of several alternative econometric specifications proposed in the literature to capture the dynamics of oil prices. Second, we analyse the effects of different data frequencies on the coefficient estimates and forecasts obtained using each selected econometric specification. Third, we compare different models at different data frequencies on a common sample and common data. Fourth, we evaluate the forecasting performance of each selected model using static forecasts, as well as...
Tipo: Working Paper Palavras-chave: Oil Price; WTI Spot and Futures Prices; Forecasting; Econometric Models; Research and Development/Tech Change/Emerging Technologies; C52; C53; Q32; Q43.
Ano: 2011 URL: http://purl.umn.edu/120042
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Scaling up Ecosystem Services Values: Methodology, Applicability and a Case Study AgEcon
Brander, Luke M.; Ghermandi, Andrea; Kuik, Onno; Markandya, Anil; Nunes, Paulo A.L.D.; Schaafsma, Marije; Wagtendonk, Alfred.
The approach of using existing data on economic values of local ecosystem services for an assessment of these values at a larger geographical scale can be called “scaling up”. In a scaling-up exercise, economic values from a particular study site are transferred to another geographical setting, for instance to the regional, national or global scale. This paper proposes a methodology for scaling up ecosystem service values to a European level, assesses the availability of data for conducting this method, and illustrates the procedure with a case study on wetland values. The proposed methodology makes use of meta-analysis to produce a value function that is subsequently applied to individual European wetland sites. Site-specific, study-specific and...
Tipo: Working or Discussion Paper Palavras-chave: Ecosystem Services; Value Transfer; Meta-Analysis; Wetland Values; Environmental Economics and Policy; C81; Q24; Q57.
Ano: 2010 URL: http://purl.umn.edu/60689
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The Economic Valuation of Marine Ecosystems AgEcon
Nunes, Paulo A.L.D.; Ding, Helen; Markandya, Anil.
In a democratic system, policy makers have to take the preferences of the citizens into account. Since we live in a world with scarce resources, one is asked to make choices regarding the use and management of these resources. In this context, if policy makers decide to invest in the protection of marine ecosystems, less financial resources will be available for other policy areas, for example national health. Moreover, the investment in the protection of marine ecosystems brings along with it the provision of a wide range of benefits to humans though most are not priced in the existing markets – for example climate regulation and provision of habitat for biodiversity. Given that most human activities are priced in one way or other, in some decision...
Tipo: Working or Discussion Paper Palavras-chave: Economic Valuation; Marine Ecosystem; Millennium Ecosystem Assessment Approach; Europe; Environmental Economics and Policy; Q50; Q57.
Ano: 2009 URL: http://purl.umn.edu/54286
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The External Cost of European Crude Oil Imports AgEcon
Bigano, Andrea; Cassinelli, Mariaester; Sferra, Fabio; Guarrera, Lisa; Karbuz, Sohbet; Hafner, Manfred; Markandya, Anil; Navrud, Stale.
This paper is the first to assess operational and probabilistic externalities of oil extraction and transportation to Europe on the basis of a comprehensive evaluation of realistic future oil demand-supply scenarios, of the relative relevance of import routes, of the local specificities in terms of critical passages and different burdens and impacts along import routes. The resulting externalities appear reasonable both under the assumption of high future demand and under low demand. Estimates range from 2.32 Euro in 2030 in the low demand scenario to 2.60 Euro in 2010 in the high demand scenario per ton of imported oil.
Tipo: Working or Discussion Paper Palavras-chave: Oil Transport; Externalities Oil Spills; Risk Analysis; Resource /Energy Economics and Policy; Q32; Q25; Q41; R40.
Ano: 2009 URL: http://purl.umn.edu/50362
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The Internalization of Externalities in The Production of Electricity: Willingness to Pay for the Attributes of a Policy for Renewable Energy AgEcon
Longo, Alberto; Markandya, Anil; Petrucci, Marta.
This paper investigates the willingness to pay of a sample of residents of Bath, England, for a hypothetical program that promotes the production of renewable energy. Using choice experiments, we assess the preferences of respondents for a policy for the promotion of renewable energy that (i) contributes to the internalization of the external costs caused by fossil fuel technologies; (ii) affects the security of energy supply; (iii) has an impact on the employment in the energy sector; (iv) and leads to an increase in the electricity bill. Responses to the choice questions show that our respondents are in favour of a policy for renewable energy and that they attach a high value to a policy that brings private and public benefits in terms of climate change...
Tipo: Working or Discussion Paper Palavras-chave: Consumer/Household Economics; Resource /Energy Economics and Policy.
Ano: 2006 URL: http://purl.umn.edu/12111
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