In this collection of essays honoring the work of Wallace E. Oates, contributors apply his ideas and insights to a range of problems. Chapters on environmental economics assess environmental policy in today's conservative era and analyze environmental taxes, environmental federalism, and policy instruments. Chapters on public economics investigate vouchers for private schools, capitalization, and urban growth controls. Other subjects examined include intergovernmental grants in South Africa, and public pensions in the EU. The editors are affiliated with the University of Maryland-College Park, and Resources for the Future in Washington, DC. Annotation copyrighted by Book News, Inc., Portland, OR
This dissertation is a collection of three essays in the fields of environmental and public economics. The first essay assesses the effect of government spending on charitable donations to environmental causes. Using a theoretical model, I solve for changes in private donations due to increased government spending and contrast this with changes due to direct grants to nonprofit organizations. Depending on the nonprofit's fundraising response, government spending may result in the crowding out or in of private giving. I empirically investigate this topic using data from the tax returns of environmental charities as well as a panel survey data set on the philanthropic behavior of individuals. My results indicate that government expenditures on the environment actually crowd in private giving, partly due to the increased fundraising response by charities. The second essay examines the incidence of a pollution tax scheme in which tax revenue is returned to low-income workers. Using a general equilibrium model with both skilled and unskilled labor, a decomposition of the real net wage effects shows the effect of the tax rebate, the effect on the uses side of income (higher product prices), and the effect on the sources side of income (relative wage rates). Numerical examples show that returning the revenue to the low-skilled workers is still not enough to offset the effect of higher product prices; in almost all cases, the rebate does not prevent a reduction in the real net wage. The third essay studies the distributional effects of the SO2 allowance market. Even if low-income households do not have large budget shares for the polluting good, grandfathered permit systems may still be regressive since the permit rents accrue disproportionately to wealthy shareholders in the polluting industry. I estimate the burden imposed on different income groups under a grandfathered permit policy and compare this with the burden under an auctioned policy. Using Monte Carlo techniques, I calculate the 5th and 95th percentiles of the distribution of possible results. I find evidence of regressivity for grandfathered permits whereas an emissions tax/auctioned permit system can be progressive if the scarcity rents are distributed in lump sums.
This concise, well-focused text identifies the failure of the market mechanism in the face of environmental problems, showing how economic policy should be designed to overcome them. Special attention is paid to possible benefits from green tax reform.
Abstract Essays on Environmental Economics by Qu Tang Doctor of Philosophy in Agricultural and Resource Economics University of California, Berkeley Professor Gordon C. Rausser, Chair This dissertation is comprised of three essays that apply microeconomics theory and econometric methods to study important issues in environmental economics. In the first essay, I investigate the impacts of imposing inter-state trade restrictions on the compliance costs of coal-fired electric generating units (EGUs) in the context of a U.S. SO2 emissions trading program (the Acid Rain Program). Over the past decade, tremendous efforts have been devoted to modifying emissions trading programs to address cross-state air pollution problems. The modification involves imposing more restrictions on emissions trading across geographical areas. The empirical question is how severe trade restrictions affect the regulated firms' compliance costs. Using rich data from the Acid Rain Program, this essay developed a discrete-continuous model to estimate electric generating units' compliance strategies and marginal abatement costs associated with the nationwide uniform emissions trading as the program was implemented in practice. Based on the estimation results, this essay then simulated units' compliance behaviors and the corresponding compliance costs if interstate trading had been prohibited. The results show that the aggregate compliance costs would increase more than one and a half times for the same emissions reduction goal due to the narrower trading markets in the counterfactual policy design with trade restrictions, and the costs would vary dramatically across space. Combined with the analysis on the benefit side, the results of this essay could be used to predict welfare impacts associated with trade restrictions at both national level and state level. And it may shed light on the future modification and implementation of EPA's cross-state air pollution regulations. The second essay applies an equilibrium sorting model to a brand-new housing market in Beijing, China to estimate household preferences for neighborhood public goods provision, including public transportation services, public primary schools, and environmental amenities. The equilibrium sorting model is based on a discrete choice model of household residential location decisions. Relying on a unique, detailed data set on housing location, price, and other household characteristics, I estimate the model following the two-step BLP method, taking into account the heterogeneity of household preferences, incorporating neighborhood-specific unobservable characteristics, and addressing the endogeneity of housing prices using instrumental variables. The results suggest that in general, lower housing price, better environmental amenities, and being closer to job centers will increase the choice opportunity of a neighborhood, and public transportation systems play a more important role in the neighborhoods far away from urban centers. Moreover, different households show varying preferences for these public goods. A distinct fact is that in addition to income, people's preferences vary greatly with generation (head age of households) and job type (whether there are public employees), which reveal the significant differences between generations and illustrate the welfare for public employees within the context of the transitional economy in China. This preference heterogeneity implies that future policies should be more geographically asymmetric, locally targeted and tailored based on specific socio-economic characteristics. The third essay estimates the impact of climate change on the crop yields in China. I use a 11-year county-level panel data set covering more than 1,000 counties to estimate the effects of random year-to-year variation in weather on three major crops yields, including rice, wheat, and corn. Because it is not easy for small-scale farmers to adapt to climate change quickly in short time, these estimates could be used to plausibly predict the short to medium-run impacts of climate change on crop yields in China. The essay finds that over the period 2040-2060, projected climate change would reduce rice yield by 1.18% under a comparatively high emission scenario and by 0.08% under a medium-low scenario, reduce corn yield by 2.21% and 1.64% under the two emission scenarios, respectively, and increase wheat yield by 6.68% and 5.48% under the two emission scenarios, respectively. These findings may shed light on future policy designs to enhance the adaptive capacity of agriculture in China and thus ensure food security in the context of climate change.
This book deals with not just complex linkages, interactions and exchanges that form the relationship between the economic activities, human society and the ecosystems, but also the influences and impacts that each causes on the other. In recent times, this ecology–economy–society interface has received unprecedented attention within the broader environment–development discourse. The volume is in honour of Kanchan Chopra, one of the pioneers of research in these areas in India. She has recently been awarded the coveted Kenneth Boulding Award by the International Society for Ecological Economics (ISEE) and is the first Asian to receive it. The four sub-themes of the book reflect some of the important areas in the environment–development discourse — sustainability of development, institutions and environmental governance, environment and well-being, and ecosystem and conservation. Within each of the sub-themes, the policy and the practice as well as the macro and micro aspects are addressed. With contributions mainly from ecological economists and ecologists, the book’s approach is interdisciplinary, both in spirit and content, reflecting the honoree's work, which went not just beyond the mainstream ideology of economics, but also the way she listened to ideas from disciplines like ecology and sociology. The volume also includes two reflective essays on academic life and works of Kanchan Chopra. The book is a valuable resource for students, teachers, researchers, practitioners and policy makers in the areas of development economics, ecological economics, environmental economics and related disciplines such as conservation, development, ecology, economics, environment, governance, health, sociology and public policy.
This book, first published in 1988, provides an overview of the diverse work that was being done in applied and theoretical environmental and resource economics. Some essays reflect upon the background of the work of John Krutilla, one of the founders of Resources for the Future and a leading scholar of environmental economics, and the development of the field to date. Other essays examine and convey findings on particular resource problems and theoretical issues and resource policies and the practice of applied welfare economics. This title will be of interest to students of economics and environmental studies.
This text investigates many of the contemporary advances in economics, in terms of the management of natural resources and environments. The authors also concentrate on other important issues such as control theory for non-convex economic problems, duopoly theory, game theory, local public finance, patent races and population control. In addition, they investigate the difficulties involved in constructing environmental agreements, and detail the potential benefits of marrying together the disciplines of ecology and economics. As a whole, the book illustrates both the power and limitations of economics to shed light on many of today's pressing environmental issues.
This book honours Partha Dasgupta, and the field he helped establish; environment and development economics. It concerns the relationship between social systems and natural systems. Above all, it concerns the poverty-environment nexus: the complex pathways by which people become or remain poor, and resources become or remain overexploited.
This collection of specially commissioned papers pays tribute to Karl-Gustaf Lofgren's significant and diverse contribution to theoretical and empirical research within the field of environmental and resource economics over the past two decades. A number of distinguished scholars examine a broad range of topics including sustainability, risk and uncertainty, demand theory and issues related to public goods. The book also contains analyses of more specific resource problems concerning fisheries, forestry management, wildlife and pollution. Together, the seventeen chapters provide an innovative and cutting-edge analysis of a smorgasbord of both old and new environmental and resource problems, including, amongst others: local public goods and income heterogeneity self-selection and the value of lives saved international fisheries agreements salmon and hydropower discrete versus continuous harvesting timber supply voluntary road pricing economic impacts of environmental regulations in California. Academics, researchers and students within the fields of environmental, resource and public economics will find this book to be a fascinating read.
These papers cover such topics as: the effects of environmental and resources policies on income distribution; the incorporation of distribution effects into environmental policy analysis; the role of economic incentives in environmental policy; the economic valuation of environment changes; and the consideration of risk and uncertainty in economic valuation and policy making. The book also includes papers on the ethical basis of environmental economics and the economic approach to environmental policy.
