SABIIA - Sistema Aberto e Integrado de Informação em Agricultura (Sabiia)

Agriculture and Greenhouse Gas Cap-and-Trade

Ye, Fanglin; Lu, Liang; Du, Xiaoxue.

In this paper, we set up a social cost minimization problem for a government. Using dynamic optimization tools, we analytically shows how exogenous parameters could affect the optimal social cost and the optimal tax credit policy path.

Tipo: Presentation

Palavras-chave: Optimal Control; Biofuel; Tax Credit; Environmental Economics and Policy; Resource /Energy Economics and Policy; Q42; Q48.

Ano: 2012

URL: http://purl.umn.edu/123750

Alternative Land Use Policies: Real Options with Costly Reversibility

Adams, Damian C..

Tipo: Report

Palavras-chave: Environmental Economics and Policy; International Relations/Trade; Q18; Q48; Q54.

Ano: 2009

URL: http://purl.umn.edu/93679

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...

An Evaluation of Overseas Oil Investment Projects under Uncertainty Using a Real Options Based Simulation Model

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

Ancillary Benefits of Reduced Air Pollution in the United States from Moderate Greenhouse Gas Mitigation Policies in the Electricity Sector

Zhu, Lei; Zhang, ZhongXiang; Fan, Ying.

This paper applies real options theory to establish an overseas oil investment evaluation model that is based on Monte Carlo simulation and is solved by the Least Squares Monte-Carlo method. To better reflect the reality of overseas oil investment, our model has incorporated not only the uncertainties of oil price and investment cost but also the uncertainties of exchange rate and investment environment. These unique features have enabled our model to be best equipped to evaluate the value of oil overseas investment projects of three oil field sizes (large, medium, small) and under different resource tax systems (royalty tax and production sharing contracts). In our empirical setting, we have selected China as an investor country and Indonesia as an...

Tipo: Working Paper

Palavras-chave: Overseas Oil Investment; Project Value; Real Options; Least Squares Monte-Carlo; Resource /Energy Economics and Policy; Q41; Q43; Q48; G31; O13; O22; C63.

Ano: 2011

URL: http://purl.umn.edu/119106

Burtraw, Dallas; Krupnick, Alan J.; Palmer, Karen L.; Paul, Anthony; Toman, Michael; Bloyd, Cary.

This paper considers how moderate actions to slow atmospheric accumulation of greenhouse gases from fossil fuel use also could reduce conventional air pollutants in the United States. The benefits that result would be "ancillary" to greenhouse gas abatement. Moreover, the benefits would tend to accrue locally and in the near term, while benefits from reduced climate change mostly accrue globally and over a time frame of several decades or longer. The previous literature suggests that changes in nitrogen oxides (NOx) would be the most important consequence of moderate carbon policies. We calculate these changes in a detailed electricity model linked to an integrated assessment framework to value changes in human health. A tax of $25 per metric ton of carbon...

Assessing China’s Energy Conservation and Carbon Intensity: How Will the Future Differ from the Past?

Palavras-chave: Climate change; Greenhouse gas; Ancillary benefits; Air pollution; Co-control benefits; Nitrogen oxides; Sulfur dioxide; Carbon dioxide; Particulates; Health; Environmental Economics and Policy; H23; I18; Q48.

Ano: 2001

URL: http://purl.umn.edu/10664

As an important step towards building a “harmonious society” through “scientific development”, China has incorporated for the first time in its five-year economic plan an energy input indicator as a constraint. While it achieved a quadrupling of its GDP while cutting its energy intensity by about three quarters between 1980 and 2000, China has had limited success in achieving its own 20% energy-saving goal set for 2010 to date. Despite this great challenge at home, just prior to the Copenhagen climate summit, China pledged to cut its carbon intensity by 40-45% by 2020 relative its 2005 levels to help to reach an international climate change agreement at Copenhagen or beyond. This raises the issue of whether such a pledge is ambitious or just represents...

Biofuel Economics in a Setting of Multiple Objectives & Unintended Consequences

Palavras-chave: Energy Saving; Renewable Energy; Carbon Intensity; Post-Copenhagen Climate Negotiations; Climate Commitments; China; Environmental Economics and Policy; Q42; Q43; Q48; Q52; Q53; Q54; Q58.

Ano: 2010

URL: http://purl.umn.edu/92837

Jaeger, William K.; Egelkraut, Thorsten M..

This paper examines biofuels from an economic perspective and evaluates the merits of promoting biofuel production in the context of the policies’ multiple objectives, life-cycle implications, pecuniary externalities, and other unintended consequences. The policy goals most often cited are to reduce fossil fuel use and to lower greenhouse gas emissions. But the presence of multiple objectives and various indirect effects complicates normative evaluation. To address some of these complicating factors, we look at several combinations of policy alternatives that achieve the same set of incremental gains along the two primary targeted policy dimensions, making it possible to compare the costs and cost-effectiveness of each combination of policies. For example,...

Biofuels Potential in Latin America and the Caribbean: Quantitative Considerations and Policy Implications for the Agricultural Sector

Palavras-chave: Biofuel; Biodiesel; Cost-Effectiveness; Indirect Land Use Change Effects; Net Energy; Multiple Objectives; Ethanol; Ghg; Resource /Energy Economics and Policy; Q42; Q48; Q54.

Ano: 2011

URL: http://purl.umn.edu/108203

Ludena, Carlos E.; Razo, Carlos; Saucedo, Alberto.

Rising oil prices has led to increased interest to replace domestic demand for liquid fuels for transport (petrol and diesel) with biofuel production (ethanol and biodiesel). One of the pioneers in biofuel production is Brazil, which since the 1970s has established a government program that promotes the production and consumption of ethanol. Currently, Brazil is the leading producer of ethanol in the world and has started also programs for biodiesel production based on soybeans, oil palm and other crops. Other countries in Latin America and the Caribbean have also expressed interest in biofuel production, and have started programs, and in some cases the legislation that promotes biofuel production. However, most of the analysis of biofuel crops has been...

Breaking the Impasse in International Climate Negotiations: A New Direction for Currently Flawed Negotiations and a Roadmap for China to 2050

Palavras-chave: Biofuels; Land availability; Price effect; Agricultural structure; Latin America; Caribbean; Resource /Energy Economics and Policy; Q42; Q48; Q11; Q15.

Ano: 2007

URL: http://purl.umn.edu/9986

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...

Can an Effective Global Climate Treaty Be Based on Sound Science, Rational Economics, and Pragmatic Politics

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

Stavins, Robert N..

The Kyoto Protocol (1997) to the United Nations Framework Convention on Climate Change (1992) may come into force without U.S. participation, but its effects on climate change will be trivial. At the same time, the economic and scientific consensus points to the need for a credible international approach. A reasonable starting point is the Framework Convention on Climate Change (FCCC), which was signed by 161 nations and ratified by 50, including the United States, and entered into force in 1994. In this paper, I remain agnostic on the question of the Kyoto Protocol's viability. Some analysts see the agreement as deeply flawed, while others see it as an acceptable or even excellent first step. But virtually everyone agrees that the Protocol is not...

Can Climate Change Mitigation Policy Benefit the Israeli Economy? A Computable General Equilibrium Analysis

Palavras-chave: Global climate change; Global warming; Policy architecture; Kyoto Protocol; Environmental Economics and Policy; Q54; Q58; Q48; Q39.

Ano: 2004

URL: http://purl.umn.edu/10720

Palatnik, Ruslana Rachel; Shechter, Mordechai.

The growing attention to global warming due to greenhouse gas (GHG) emissions in the process of fossil fuel--based energy production is expressed in the Kyoto Protocol, which prescribes, on average, a 7 percent reduction in GHG emissions for developed countries. Although Israel was not included in the list of the obligated countries ("Annex A"), it should consider the economic implications of participating in the emission reduction effort, as such a commitment becomes highly feasible following the Bali roadmap which oblige a successor to the Kyoto Protocol to launch negotiations including all parties to the UNFCCC on a future framework, stressing the role of cooperative action and of common though differentiated responsibility. This study aimed to quantify...

Carbon Abatement in the Fuel Market with Biofuels: Implications for Second-Best Policies

Palavras-chave: Computable General Equilibrium; Climate Change; Environmental Policy; Double Dividend; Israel; Environmental Economics and Policy; Public Economics; D58; H23; Q43; Q48; Q52.

Ano: 2008

URL: http://purl.umn.edu/6361

Crago, Christine Lasco; Khanna, Madhu.

A carbon tax would penalize carbon intensive fuels like gasoline and shift fuel consumption to less carbon intensive alternatives like biofuels. Since biofuel production competes for land with agriculture, a carbon tax could raise land rents, divert land towards fuel production, and raise agricultural prices. This paper analyzes the welfare effect of a carbon tax on fuel with gasoline and biofuel as available fuel choices, in the presence of a labor tax and biofuel subsidy. The second-best optimal carbon tax is also quantified. Findings show that when biofuels is part of the fuel mix, the carbon tax has a commodity price effect which arises from tax-induced changes in land rent. The commodity price effect could exacerbate or attenuate the tax interaction...

Carbon Mitigation Costs for the Commercial Sector: Discrete-Continuous Choice Analysis of Multifuel Energy Demand

Palavras-chave: Carbon tax; Optimal fuel tax; Biofuel; Environmental Economics and Policy; Q42; Q48; Q54; H23.

Ano: 2010

URL: http://purl.umn.edu/60894

Newell, Richard G.; Pizer, William A..

We estimate a carbon mitigation cost curve for the U.S. commercial sector based on econometric estimation of the responsiveness of fuel demand and equipment choices to energy price changes. The model econometrically estimates fuel demand conditional on fuel choice, which is characterized by a multinomial logit model. Separate estimation of end uses (e.g., heating, cooking) using the 1995 Commercial Buildings Energy Consumption Survey allows for exceptionally detailed estimation of price responsiveness disaggregated by end use and fuel type. We then construct aggregate long-run elasticities, by fuel type, through a series of simulations; own-price elasticities range from -0.9 for district heat services to -2.9 for fuel oil. The simulations form the basis of...

China in the Transition to a Low-Carbon Economy

Palavras-chave: Commercial energy demand; Carbon policy; Climate change; Discrete choice; Resource /Energy Economics and Policy; Q28; Q48; Q41; C35; C15.

Ano: 2005

URL: http://purl.umn.edu/10625

China, from its own perspective cannot afford to, and from an international perspective, is not allowed to continue on the conventional path of encouraging economic growth at the expense of the environment. The country needs to transform its economy to effectively address concern about a range of environmental problems from burning fossil fuels and steeply rising oil import and international pressure to exhibit greater ambition in fighting global climate change. This paper first discusses China’s own efforts towards energy saving and pollutants cutting, the widespread use of renewable energy and participation in clean development mechanism, and puts carbon reductions of China’s unilateral actions into perspective. Given that transition to a low carbon...

Climate Change Meets Trade in Promoting Green Growth: Potential Conflicts and Synergies

Palavras-chave: Energy Saving; Renewable Energy; Clean Development Mechanism; Nuclear Power; Power Generation; Oil and Gas; Post-Copenhagen Climate Negotiations; China; Resource /Energy Economics and Policy; Q42; Q48; Q52; Q54; Q58.

Ano: 2010

URL: http://purl.umn.edu/91009

To date, border adjustment measures in the form of emissions allowance requirements (EAR) under the U.S. proposed cap-and-trade regime are the most concrete unilateral trade measure put forward to level the carbon playing field. If improperly implemented, such measures could disturb the world trade order and trigger a trade war. Because of these potentially far-reaching impacts, this paper focuses on this type of unilateral border adjustment, which requires importers to acquire and surrender emissions allowances corresponding to the embedded carbon contents in their goods from countries that have not taken climate actions comparable to that of home country. This discussion is mainly on the legality of unilateral EAR under the WTO rules. Given that the...

Palavras-chave: Post-2012 climate negotiations; Border carbon adjustments; Carbon tariffs; Emissions allowance requirements; Cap-and-trade regime; Lieberman-Warner bill; Waxman-Markey bill; World Trade Organization; Kyoto Protocol; Developing countries; United States; Environmental Economics and Policy; F18; Q48; Q54; Q56; Q58.

Ano: 2010

URL: http://purl.umn.edu/59475

Climate Change Policy

Shogren, Jason F.; Toman, Michael.

Having risen from relative obscurity as few as ten years ago, climate change now looms large among environmental policy issues. Its scope is global; the potential environmental and economic impacts are ubiquitous; the potential restrictions on human choices touch the most basic goals of people in all nations; and the sheer scope of the potential response - a significant shift away from using fossil fuels as the primary energy source in the modern economy -is daunting. In this paper, we explore the economics of climate change policy. We examine the risks that climate change poses for society, the benefits of protection against the effects of climate change, and the costs of alternative protection policies. We organize our discussion around three broad...

Combining Climate and Energy Policies: Synergies or Antagonism? Modeling interactions with energy efficiency instruments

Palavras-chave: Climate change; Incentive-based policy; International environmental cooperation; Benefit-cost analysis; Environmental Economics and Policy; Q25; Q28; Q48.

Ano: 2000

URL: http://purl.umn.edu/10767

Lecuyer, Oskar; Bibas, Ruben.

In addition to the already present Climate and Energy package, the European Union (EU) plans to include a binding target to reduce energy consumption. We analyze the rationales the EU invokes to justify such an overlapping and develop a minimal common framework to study interactions arising from the combination of instruments reducing emissions, promoting renewable energy (RE) production and reducing energy demand through energy efficiency (EE) investments. We find that although all instruments tend to reduce emissions and a price on carbon tends to give the right incentives for RE and EE too, the combination of more than one instrument leads to significant antagonisms regarding major objectives of the policy package. The model allows to show in a single...

Tipo: Working Paper

Palavras-chave: Renewable Energy; Energy Efficiency; Energy Policy; Climate Policy; Policy Interaction; Resource /Energy Economics and Policy; Q28; Q41; Q48; Q58.

Ano: 2011

URL: http://purl.umn.edu/120049

Combining Rate-Based and Cap-and-Trade Emissions Policies

Fischer, Carolyn.

Rate-based emissions policies (like tradable performance standards) fix average emissions intensity, while cap-and-trade policies fix total emissions. This paper shows that unfettered trade between rate-based and cap-and-trade programs always raises combined emissions, except when product markets are related in particular ways. Gains from trade are fully passed on to consumers in the rate-based sector, resulting in more output and greater emissions allocations. We consider a range of policy options to offset the expansion, including unilateral ones when jurisdictional differences require. The cap-and-trade jurisdiction could impose an "exchange rate" to adjust for relative permit values, but marginal abatement cost equalization is sacrificed. Still, that...

Comparison of a Fixed and Variable Corn Ethanol Subsidy

Palavras-chave: Emissions trading; Permit allocation; Tradable performance standards; Climate; Greenhouse gases; Environmental Economics and Policy; H23; H3; Q2; Q48.

Ano: 2003

URL: http://purl.umn.edu/10713

Tyner, Wallace E.; Quear, Justin.

Tipo: Journal Article

Palavras-chave: Agricultural and Food Policy; Crop Production/Industries; Q48.

Ano: 2006

URL: http://purl.umn.edu/94404

Conditions Necessary for Private Investment in the Ethanol Industry