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Registros recuperados: 31
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A Proposal for the Design of the Successor to the Kyoto Protocol AgEcon
Karp, Larry S.; Zhao, Jinhua.
The successor to the Kyoto Protocol should impose national ceilings on rich countries’ greenhouse gas emissions and promote voluntary abatement by developing countries. Our proposal gives signatories the option of exercising an escape clause that relaxes their requirement to abate. This feature helps to solve the participation and compliance problems that have weakened the Protocol. We support the use of carefully circumscribed trade restrictions in order to reduce the real or perceived problem of carbon leakage.
Tipo: Working or Discussion Paper Palavras-chave: Kyoto protocol; Escape clause; Emissions trade; Clean development mechanism; Environmental Economics and Policy; Resource /Energy Economics and Policy; Q54; Q58; F13.
Ano: 2008 URL: http://purl.umn.edu/42878
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A PROPOSAL TO REFORM THE KYOTO PROTOCOL: THE ROLE OF ESCAPE CLAUSES AND FORESIGHT AgEcon
Karp, Larry S.; Zhao, Jinhua.
A reform to the Kyoto Protocol that allows signatories to pay a fine instead of meeting the target level of abatement would achieve three goals. First, it would defuse one U.S. objection to the agreement: the concern that the cost of achieving the target might turn out to be extremely high. Second, unlike other cost-reducing measures (such as trade in pollution permits) it would increase the equilibrium number of signatories in a non-cooperative participation game. Third, it would make it easier to force signatories to comply with their obligations. We study the participation game under an escape clause using both a Nash Equilibrium and the concept of a stable set when nations are “farsighted”. We compare our results to a prominent model of International...
Tipo: Working or Discussion Paper Palavras-chave: Environmental Economics and Policy.
Ano: 2007 URL: http://purl.umn.edu/6857
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AGRICULTURAL PRODUCTION UNDER UNCERTAINTY: A MODEL OF OPTIMAL INTRASEASONAL MANAGEMENT AgEcon
Weninger, Quinn; Zhao, Jinhua.
This paper develops a dynamic model of crop production under uncertainty with intraseasonal input choices. Crop production involves multiple stages, including at least seeding, post emergence fertilizer/pesticide application and harvesting. If the farmer receives new information about the output and/or price during the stages, he may wish to adjust the input use at each stage in response to the future possible information. Whether future information leads to higher or lower input use at earlier stages depends on the production function, in particular whether inputs at different stages are substitutes or complements in the production function.
Tipo: Conference Paper or Presentation Palavras-chave: Farm Management.
Ano: 2002 URL: http://purl.umn.edu/19639
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ALTERNATIVE GREEN PAYMENT POLICIES UNDER HETEROGENEITY WHEN MULTIPLE BENEFITS MATTER AgEcon
Zhao, Jinhua; Kling, Catherine L.; Kurkalova, Lyubov A..
We investigate the environmental impacts of several forms of policies that offer farmers subsides in return for adoption of conservation tillage. The policies differ on whether the tillage practice or one of the environmental benefits is targeted. We develop an environmental Lorenz curve that fully represents the performance of the targeting policies, and we show that these curves can be used directly to help select the optimal targeting strategy for special classes of social welfare functions. We apply the model to the state of Iowa.
Tipo: Working or Discussion Paper Palavras-chave: Environmental Lorenz curve; Multiple benefits of conservation tillage; Targeting subsidy policy; Environmental Economics and Policy.
Ano: 2003 URL: http://purl.umn.edu/18383
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Alternative Green Payment Policies When Multiple Benefits Matter AgEcon
Zhao, Jinhua; Kurkalova, Lyubov A.; Kling, Catherine L..
This study investigates the environmental impacts of several forms of policies that offer farmers subsides in return for the adoption of conservation tillage. The policies differ as to whether the tillage practice or one of several environmental benefits is targeted. We develop an Environmental Lorenz Curve which fully represents the performance of the targeting policies, and show that this curve can be directly used to help select the optimal targeting strategy for special classes of social welfare functions. The model is applied to the state of Iowa.
Tipo: Journal Article Palavras-chave: Environmental Economics and Policy.
Ano: 2004 URL: http://purl.umn.edu/31378
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ALTERNATIVE INTERTEMPROAL PERMIT TRADING REGIMES WITH STOCHASTIC ABATEMENT COSTS AgEcon
Feng, Hongli; Zhao, Jinhua.
We examine the social efficiency of alternative intertemporal permit trading regimes. Banking with a 1-to-1 ratio and with a non-unitary intertemporal trading ratio (ITR) are compared with each other and with the no-banking permit trading regime. The more industry-wide shocks vary, and/or the more they are negatively correlated across time, the more efficient is a bankable permit regime. When the slope of the benefit function is greater than the slope of the damage function, banking with ITR=1+r is more efficient than a no-banking regime. Banking with ITR=1 can be more efficient than a no-banking regime. However, whether ITR=1 or ITR=1+r is better depends on the covariance structure of the shocks and the benefit and damage functions.
Tipo: Working or Discussion Paper Palavras-chave: Bankable permits; Permit banking; Borrowing; Environmental Economics and Policy.
Ano: 2002 URL: http://purl.umn.edu/18543
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Alternative Land Use Policies: Real Options with Costly Reversibility AgEcon
Song, Feng; Zhao, Jinhua; Swinton, Scott M..
This paper adopts a real options framework to evaluate the cost-effectiveness of four types of subsidies that aim to encourage a socially desirable land use under return uncertainties and costly reversibility of land use change. We first present a land conversion model to show how the subsidies that are expected net present value (ENPV) equivalent can change a representative farmer’s optimal land conversion rules differently for converting land into an alternative use as well as converting out of it. This is because these subsidies affect the land conversion costs, land return level and uncertainty differently. Then in the context of encouraging energy crop production, we compare the probabilities of inducing the representative farmer to convert land from...
Tipo: Conference Paper or Presentation Palavras-chave: Monte Carlo simulations; Real options; Agricultural subsidies; Cost-effectiveness; Two-way land conversion; Agricultural and Food Policy; Resource /Energy Economics and Policy; Q24; Q48.
Ano: 2010 URL: http://purl.umn.edu/61510
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Carbon Sequestration in Agriculture: Value and Implementation AgEcon
Feng, Hongli; Zhao, Jinhua; Kling, Catherine L..
We investigate the value of carbon sequestration in a dynamic model, demonstrating that it is only a fraction of the value of emission abatement unless the sequestration, the natural decay rate of carbon and the discount rate. We also show that to optimally reduce the carbon stock, sinks should be utilized as early as possible. Further, we propose and assess three mechanisms to efficiently introduce sequestration into a carbon permit trading market, a pay-as-you-go system. We show that, although the three mechanisms may not be equally feasible to implement, they are all efficient.
Tipo: Working or Discussion Paper Palavras-chave: Environmental Economics and Policy.
Ano: 2000 URL: http://purl.umn.edu/18380
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Common Ground Between Free-Traders and Environmentalists AgEcon
Karp, Larry S.; Sacheti, Sandeep; Zhao, Jinhua.
We use a North-South model with property right differences and resource dynamics to study the effects of trade on resource use and welfare. Autarky is likely to Pareto-dominate free trade in the long run when the environment is quite fragile, and the result is reversed when the environment is quite resilient. Trade may cause an environmentally poor country to drag down" its richer trading partner; in this case, both countries degrade their stocks when these would be preserved under autarky. Alternatively, trade may enable the environmentally richer country to pull up" its partner; in this case both countries preserve their stocks when these would be degraded under autarky. These results rationalize the positions of environmentalists and free-traders. The...
Tipo: Working or Discussion Paper Palavras-chave: Environmental Economics and Policy; D5; F1; O2; Q2.
Ano: 1999 URL: http://purl.umn.edu/25042
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Conservation Payments: Challenges in Design and Implementation AgEcon
Babcock, Bruce A.; Beghin, John C.; Duffy, Michael D.; Feng, Hongli; Hueth, Brent; Kling, Catherine L.; Kurkalova, Lyubov A.; Schneider, Uwe A.; Secchi, Silvia; Weninger, Quinn; Zhao, Jinhua.
As Congress develops new farm legislation, some are lobbying for a new partnership between U.S. taxpayers and farmers. In exchange for an annual transfer of $10 to $20 billion from taxpayers to agriculture, farmers would do much more to enhance environmental quality. An attractive feature of a new partnership is that paying for an improved environment provides a clear and justifiable rationale for farm program payments, something that is lacking under current farm programs. By changing management practices and land use, farmers can provide cleaner water, cleaner air, better wildlife habitat, lower net greenhouse gas emissions, and improved long-run soil quality. Private profit maximizers largely ignore the value of these environmental goods. Hence, the...
Tipo: Working or Discussion Paper Palavras-chave: Land Economics/Use; Resource /Energy Economics and Policy.
Ano: 2001 URL: http://purl.umn.edu/36920
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ENVIRONMENTAL VALUATION UNDER DYNAMIC CONSUMER BEHAVIOR AgEcon
Zhao, Jinhua; Kling, Catherine L..
The paper presents two simple models of dynamic consumer behavior, both taking into consideration the implications for welfare measurement when agents can delay transactions while obtaining additional information. One model studies the effect when a purchased good is non-perishable and can be consumed in the future, while the other model introduces a perishable good, implying that the quantity of consumption can vary in each period. Even in the case of the perishable item, the availability of information at the time of the consumption decision has important implications for welfare measurement. Agents who must make a decision at the present but know that additional information will be available later may change their income allocation to take advantage of...
Tipo: Working or Discussion Paper Palavras-chave: Environmental Economics and Policy.
Ano: 2002 URL: http://purl.umn.edu/18621
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GREEN SUBSIDIES IN AGRICULTURE: ESTIMATING THE ADOPTION COSTS OF CONSERVATION TILLAGE FROM OBSERVED BEHAVIOR AgEcon
Kurkalova, Lyubov A.; Kling, Catherine L.; Zhao, Jinhua.
Because of payoff uncertainties combined with risk aversion and/or real options, farmers may demand a premium in order to adopt conservation tillage practices, over and above the compensation for the expected profit losses (if any). We propose a method of directly estimating the financial incentives for adopting conservation tillage and distinguishing between the expected payoff and premium of adoption based on observed behavior. We find that the premium may play a significant role in farmers' adoption decisions.
Tipo: Working or Discussion Paper Palavras-chave: Adoption subsidies; Conservation Security Program (CSP); Conservation tillage; Risk premium; Environmental Economics and Policy.
Ano: 2003 URL: http://purl.umn.edu/18517
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Impacts of Livestock Operations: A Gaussian Dispersion Hedonic Approach AgEcon
Ran, Tao; Zhao, Jinhua.
The paper studies the impacts of livestock facilities on property values, and extends the hedonic housing price models by explicitly modeling the way odor is dispersed in the atmosphere. Using a Gaussian dispersion model of odor, our estimation allows us to separately estimate the environmental effects and other effects, and to evaluate the marginal contributions of livestock facilities depending on their location.
Tipo: Conference Paper or Presentation Palavras-chave: Land Economics/Use.
Ano: 2005 URL: http://purl.umn.edu/19116
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INSTITUTIONS AND THE VALUE OF NONPOINT SOURCE MEASUREMENT TECHNOLOGY: CARBON SEQUESTRATION IN AGRICULTURAL SOILS AgEcon
Kurkalova, Lyubov A.; Kling, Catherine L.; Zhao, Jinhua.
The development of technologies for accurate field-scale carbon assessment allows the implementation of more efficient policies than can be implemented in their absence. We estimate the value of accurate measurement technology by estimating the gains from implementing a more efficient policy, one that targets carbon reductions at the field scale but requires accurate field-scale measurement technology, relative to a practice-based policy that can be implemented in the absence of such technology. We find large cost savings due to improved targeting of conservation tillage subsidies for the state of Iowa. The cost savings depend significantly on the choice of baseline carbon, while the ability of the government to cost discriminate has little impact on the...
Tipo: Working or Discussion Paper Palavras-chave: Carbon sequestration; Green payment policy; Value of measurement technology; Environmental Economics and Policy; Institutional and Behavioral Economics.
Ano: 2003 URL: http://purl.umn.edu/18540
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International Environmental Agreements: Emissions trade, safety valves and escape clauses AgEcon
Karp, Larry S.; Zhao, Jinhua.
We explain how the structure of multi-national or multi-regional environmental agreements affect their chance of success. Trade in emissions permits has ambiguous and in some cases surprising effects on both the equilibrium level of abatement, and on the ability to persuade nations or regions to participate in environmental agreements. An escape clause policy and a safety valve policy have essentially the same properties when membership in environmental agreement is pre-determined, but they create markedly different effects on the incentives to join such an agreement. The two policies lead to a qualitative difference in the leverage that a potential member of the agreement exercises on other members.
Tipo: Working or Discussion Paper Palavras-chave: Kyoto Protocol; Escape clause; Emissions trade; Cost uncertainty; Participation game; International Environmental Agreement; Environmental Economics and Policy; Research Methods/ Statistical Methods; Resource /Energy Economics and Policy; Risk and Uncertainty; C72; H4; Q54.
Ano: 2009 URL: http://purl.umn.edu/51611
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IRREVERSIBLE ABATEMENT INVESTMENT UNDER COST UNCERTAINTIES: TRADABLE EMISSION PERMITS AND EMISSIONS CHARGES AgEcon
Zhao, Jinhua.
A major concern with TEPs is that stochastic permit prices may discourage abatement investment relative to other policies such as a fixed emissions charge. However, the price uncertainty is fundamentally caused by abatement cost uncertainties, which affect investment under both policies. We develop a rational expectations general equilibrium model of permit trading to show how uncertainty reduces investment. Differences between the two policies can be decomposed into a general equilibrium effect and a price-vs-quantity effect. Except for the curvature of the payoff functions, uncertainties reduce both effects: tradable permits in fact helps maintain firms' investment incentives under uncertainty.
Tipo: Conference Paper or Presentation Palavras-chave: Environmental Economics and Policy; Q20.
Ano: 2000 URL: http://purl.umn.edu/21816
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Irreversible Abatement Investment Under Cost Uncertainties: Tradable Emission Permits and Emissions Charges AgEcon
Zhao, Jinhua.
A major concern with TEPs is that stochastic permit prices may reduce firm incentive to invest in abatement capital or technologies relative to other policies such as a fixed emissions charge. However, under effcient permit trading, the price uncertainty is caused by abatement cost uncertainties which affect investment under both permit and charge policies. We develop a rational expectations general equilibrium model of permit trading to show how cost uncertainty affects investment. Differences between the two policies can be decomposed into a general equilibrium effect and a price-vs-quantity effect. Except for the curvature of the payoff functions, uncertainties reduce both effects so that tradable permits in fact help maintain firms' investment...
Tipo: Working or Discussion Paper Palavras-chave: Environmental Economics and Policy; Q20.
Ano: 2000 URL: http://purl.umn.edu/18342
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MULTIPLE BENEFITS OF CARBON-FRIENDLY AGRICULTURAL PRACTICES: EMPIRICAL ASSESSMENT OF CONSERVATION TILLAGE AgEcon
Kling, Catherine L.; Kurkalova, Lyubov A.; Zhao, Jinhua.
In this study, we estimate empirically the multiple benefits of a subsidy policy that would offer payments to farmers in return for the adoption of conservation tillage and compare the outcomes of alternative targeting designs for such a policy. Using data for roughly 12,000 National Resource Inventory (NRI) points, we simulate for the state of Iowa the least-cost policy schemes for offering payment incentives. We use an economic model of conservation tillage adoption to evaluate the costs of adoption, and we use a model that simulates physical processes (Environmental Policy Integrated Climate, or EPIC) to estimate the environmental benefits of adoption at each of the NRI points. We assess the costs and environmental consequences of two targeting...
Tipo: Working or Discussion Paper Palavras-chave: Conservation tillage; Multiple benefits; Subsidy policy; Targeting; Environmental Economics and Policy.
Ano: 2003 URL: http://purl.umn.edu/18470
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PARAMETRIC AND NON-PARAMETRIC CROP YIELD DISTRIBUTIONS AND THEIR EFFECTS ON ALL-RISK CROP INSURANCE PREMIUMS AgEcon
Turvey, Calum G.; Zhao, Jinhua.
Normal, gamma and beta distributions are applied to 609 crop yield histories of Ontario farmers to determine which, if any, best describe crop yields. In addition, a distribution free non-parametric kernel estimator was applied to the same data to determine its efficiency in premium estimation relative to the three parametric forms. Results showed that crop yields are most likely to be described by a beta distribution but only for 50% of those tested. In terms of efficiency in premium estimation, minimum error criteria supports use of a kernel estimator for premium setting. However, this gain in efficiency comes at the expense of added complexity.
Tipo: Working or Discussion Paper Palavras-chave: Crop insurance; Crop yield distributions; Kernel; Crop Production/Industries; Risk and Uncertainty.
Ano: 1999 URL: http://purl.umn.edu/34129
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Policy Persistence in Environmental Regulation AgEcon
Zhao, Jinhua; Kling, Catherine L..
We study the optimal emission standards under uncertain pollution damages and transaction costs associated with policy changes. We show that in many situations, the authority should avoid or reduce the scale of a policy change in the presence of future transaction costs. Then policy persistence is a rational response of forward-looking policy makers to future transaction costs, rather than a passive outcome of the current political process.
Tipo: Working or Discussion Paper Palavras-chave: Environmental Economics and Policy.
Ano: 2000 URL: http://purl.umn.edu/18629
Registros recuperados: 31
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