Questions tagged [environmental-economics]

The application of economics to issues in the natural environment; especially concerning climate change.

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Difference-in-difference robust to heterogeneous treatment effect - Gendron-Carrier et al. specification

I am trying to extend the results of Gendron-Carrier et al. (2022) article published in the American Economic Journal : Applied Economics which is about the effect of subway opening on pollution. I ...
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3 votes
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Effect on Price of Emissions Permits of Progressively Reducing the Cap on Emissions in an Emissions Trading Scheme

Suppose that, in order to address climate change, a country has an emissions trading scheme comprising the following elements: The scope of the scheme is defined to include most industries that ...
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What can be done when pigouvian taxes must be so high that black markets become viable?

The whole point of a pigouvian tax is to force producers to bear an extra cost equal to the total social cost of a good right? But, the problem this presents is, what if the social cost is very high? ...
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Help me find again a paper I saw which calculated a high social cost of carbon

A month or two ago I came across a paper which calculated the social cost of carbon taking into account that less well off countries would be disproportionately affected by climate change, leading to ...
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References about environmental economics

do you know any textbook, or any website providing free lectures or lecture notes, or anything, that would introduce me to environmental economics? I have a master in economics so I am not against ...
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Positive externalities of cars - free seats on public transport

I was in a discussion about externalities surrounding private and public transport. Someone argued that by taking a car they are creating a positive externality by not taking up a seat on a bus or ...
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Is Hal Varian's intermediate microeconomic externality graph wrong?

Here is the capture from Hal Varian's Intermediate Microeconomics chapter Externality. I remember clearly my lecturer said this graph is wrong several years ago, but I cannot remember the argument ...
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Is climate change an economic question?

The assumption that the Keeling Curve can be approximated with a function $$k=A+B\cdot e^{\alpha t}$$ leads to a solution with $A=258.6$, $B=4,243\cdot 10^{-13}$ and $\alpha=0.0166$ with a high ...
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First and Second-Best

Why are environmental instruments like Pigovian-taxes or the Coase-Theorem viewed as first-best solutions, while taxes or tradable permits are viewed as second best? How do they differ, and what makes ...
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Utility maximization: pollution and housing prices

A factory releases a toxic pollutant which causes two types of damage to a representative area resident whose utility function is $U(S,H,x)= a \cdot \log(S) + b \cdot \log(H) + c \cdot \log (x)$ where ...
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Which are the principal economic barriers to a circular economy?

The discussion usually revolves around issues such as product design, cultural awareness, etc. I wonder what the fundamental economic barriers are. I see a fundamental issue e.g. in transaction costs ...
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Would a Weather and Climate Change class be helpful to peruse a career in environmental economics [closed]

I’m an undergraduate student and want to become an environmental economist. Would it be beneficial to take a class on weather and climate change or should I stick with economics courses geared towards ...
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Is there a conventional list of pollution categories to consider in calculations? [closed]

In researching economic damage from various pollutants, I often find that it's very random sources that inform me of various pollutants I need to be mindful of in calculations. Is there any kind of ...
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Is there a standard density-dependent calculation method for demographic extrapolations?

In trying to come up with a method of evaluating the damage from pollution, I did not see a "demography" site or "population dynamics" site so I am not sure where else to ask this. ...
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why don't we also pay money to industries that have a negative carbon footprint?

I understand that taxes (Pigovian taxes) can be used to steer the economy in a certain way. For example, if you increase the taxes on things related to cigarettes, the price increase will decrease the ...
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Travel Cost Method - how to treat people who live at a site

We are about to do a survey using the individual travel cost method to value a harbour, located in a fishing society, which is visited by tourists each season. My question is - should we include in ...
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Is the use/consumption of natural resources considered an externality per se?

On a finite planet natural resources are rival goods by definition, i.e. if one agent uses/consumes a natural resource it becomes unavailable for other agents. Mankiw defines an externality as "the ...
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Could a carbon tax be a substitute for VAT?

VAT is a tax on consumption. However, while in some instances it taxes negative externalities (e.g. fossil energy consumption) in many other cases it taxes services without externalities or ...
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Do carbon taxes in place today apply to carbon embedded in imports?

I’m giving the example of Sweden whose carbon tax is highly regarded and which is the highest in Europe. Source Sweden has a carbon tax of €110 / t. Source This tax does not apply to installations ...
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What would the price of carbon emissions need to be for the EU to achieve its objective to be carbon neutral by 2050?

The EU committed to net zero green house emissions by 2050. (Source) It is regularly said that the a carbon tax of USD 40-80 / t CO2e (USD 50-100 by 2030) would be sufficient to reach the Paris ...
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Why can goods be reallocated when there is market failure?

Hanley, Shogren, and White (2007) states that "A market failure occurs when the market does not allocate scarce resources to generate the greatest social welfare. A wedge exists between what a private ...
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How can I control for trade between UK and Australia in my difference-in-difference trade model?

I am doing a report on whether environmental regulation has an impact on trade, using a difference-in-difference model and seeing whether the EU Industrial Emissions Directive had an effect on UK ...
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2 votes
1 answer
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Is my reasoning about economic growth and environmental sustainability correct?

Below is my attempt to answer question "Can we have economic growth and environmental sustainability?". Please correct me if I got something wrong in my reasoning. Let's see what is counted as ...
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2 votes
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What would the consequences of an economy-wide 500EUR/tonne carbon tax be?

I recently calculated that Finnish car owners effectively pay 500 EUR per every tonne of carbon dioxide emitted from the tailpipe of a car. This payment is caused by three taxes that are in practice ...
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Why aren't we seeing carbon taxes in practice?

(See also a version of this question under politics, https://politics.stackexchange.com/questions/48764/why-arent-we-seeing-carbon-taxes-in-practice) It seems that there are many advantages to carbon ...
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Which is more economical with resources, an e-tick or a paper ticket?

I always get an e-ticket on my mobile, to save the environment and so on. But then I thought well, am I really saving trees? I have to give my phone a full charge in order that it doesn't run out ...
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1 answer
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How does fuel tankering save airlines money

The aviation industry practice of fuel-tankering has been in the news recently. As the BBC describes it: "planes are filled with extra fuel, usually to avoid paying higher prices for refuelling at ...
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Does recycling lead to fewer jobs?

Say I buy a glass bottle, I can either put it in the landfill or recycle it. My understanding is, glass will breakdown into sand. (Not sure how well though, since we sometimes find glass from Roman ...
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Socio-Economic Consequences of Nation-Wide Vegan Diet [closed]

An advice I often hear regarding our environmental impact is to 'stop consuming meat and dairy products'. This is stated as the number one way to reduce your ecological footprint, according to ...
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Public Bads and Non-Excludability

The term "public bad" is sometimes used for "goods" which, like public goods, are non-excludable and non-rival, but which tend to lower rather than raise welfare. Air pollution is an example. For a ...
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What is the most accessible work of Herman Daly?

I am an undergrad with limited experience in the fields of economics and ecology, and having recently discovered the work of the celebrated economist Herman Daly, who has been writing for decades ...
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Papers on International Trade and Environment

everyone. As a requirement to get my bachelor's in economics, I have to write a paper. The theme I picked is something along the lines of "the impact of environmental crimes and regulation on ...
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1 answer
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Policy to maintain cleanliness

In countries where littering is a problem and the regulations and rules alone cannot give the desired effect due to vary high population,large surface area,etc.. ,will it be effective if the ...
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1 answer
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International emissions trading

As far as I have understood emission right certificates are some kind of currency. Each company may emit as much of say CO2 as its certificates allow. Certificates may be traded, i.e. bought and sold. ...
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4 votes
2 answers
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Sources on Border Carbon Adjustment

A large number of US economists have signed a Statement on Carbon Dividends, advocating a revenue neutral carbon tax as the best policy measure to reduce carbon emissions and so mitigate climate ...
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derivation of pigou taxes in multiple polluter case

I can`t quite wrap my head around one step in deriving the pigou tax in a multiple polluter case. There are j firms, which produce joint product in amount of $k_j$. Joint product can be abated, ...
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Urgent answer needed! [closed]

I am currently studying in 12th. We have a subject called EVS - Environmental Studies. So as usual, we have to do projects. I chose "Bad effects of Plastic". In the project book I have to write that ...
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A maximization program expressed by per capita variales - Ramsey model

I have a problem to be maximized with the following program $$max\int_{0}^{\infty}\left\{ u\left(C\right)+\beta S^{\chi}\right\} e^{-\rho t}dt$$ s.t $$\dot{K}=AK-C$$ $$\dot{S}=\left(1-S\right)S-\...
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-1 votes
1 answer
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Command and control policy approach graph

I'm unsure why a command and control policy approach to pollution will still have a dead weight loss? What happens with it/ or what does the government do about it if anything?
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5 votes
1 answer
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Universal carbon price

To pre-face this, I am not an economist by education. Recently I have read a significant number of policy papers concerning climate change that make the claim, a priori, that a universal carbon price ...
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Economic valuation of green spaces using GIS

I was wondering if there are any standard methods that are employed to obtain insight of the economic value of tree cover in a particular area. I assumed using negative difference vegetation index ...
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2 votes
2 answers
113 views

Recycling credits

My textbook says that sometimes producers are responsible for ensuring that their product is recycled. They are required to buy "credits" from firms that recycle their type of product. It says that ...
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5 votes
1 answer
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A growth model with regime switch

I have a very general question. I am reading this paper : http://www.webmeets.com/files/papers/eaere/2015/177/Discounting-HelsinkiBlind.pdf There is a catastrophic event probability and after the ...
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3 votes
1 answer
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Is undervaluing environmental impact a subsidy?

This is in relation to a recent question on skeptics which to me seems to broil down to whether you accept that form of accounting, i.e. consider undervaluing environmental impact a hidden subsidy. ...
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1 vote
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Best strategy to incentivise third party investment

How can governments incentivise NGOs and economic consulting firms to invest in national reserve conservation? I guess this would be more political, but what are the more economic aspects of trying to ...
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Reference request about econometric analysis of Environmental Kuznets curve

I could not find from where to learn the application of Econometrics on data analysis relating to environmental Kuznets curve. Are there any books or articles which talk about the above?
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3 votes
1 answer
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Dynamic Optimization : Resource Stock as a Sink

I think about a dynamic problem where social planner maximizes the following utility ; $$\underset{c\left(t\right)}{max}\int_{0}^{\infty}u\left(c\left(t\right)\right)e^{-\rho t}$$ subject to two ...
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5 votes
2 answers
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Economics in nature?

Unsure if this is off topic but have there been any attempts to look at the "economics of nature"? I mean this in the sense of measuring the "economic activities" of the animal kingdom. From ...
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1 vote
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Cannot reproduce paper result on Boston Housing

I have been trying to reproduce the results for "Hedonic Housing Prices and the Demand for Clean Air" but to no avail thus far. In table 7 there are three regressions mentioned using the Boston data ...
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1 vote
2 answers
181 views

What is Natural Capital?

"European movements for degrowth, decroissance, are rooted in the idea that the perpetual growth assumption built into modern economics fails to take into account the depletion of natural capital. ...
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