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Questions tagged [environmental-economics]

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

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-2 votes
0 answers
12 views

After a master in environmental economics, what international opportunities are there for me? What skills do I need to gain?

Please answer for both job market opportunities and PhD positions.
1 vote
0 answers
21 views

Exponential utility with distance to the average carbon emissions of the industry

I am writing a thesis on sustainable finance and I am considering a game where the 2 players are firms wishing to maximize firm value through an investment in green technology to reduce carbon ...
1 vote
0 answers
16 views

Seeking Insights for MSc Dissertation on EU's CBAM Impact on India: Challenges and Opportunities for Collaboration

Hello Economics Community, I'm currently in the process of designing my MSc Economics dissertation and would greatly appreciate your insights. My focus is on the European Union's Carbon Border ...
0 votes
1 answer
103 views

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 ...
1 vote
1 answer
47 views

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 ...
0 votes
0 answers
20 views

Economic damage of (single pieces) of plastic

I want to know the impact of individual plastic items on everything (us, animals, the Earth...) all converted into money. For example, this bottle generally brings about a damage of x dollars, that ...
1 vote
3 answers
171 views

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 ...
-3 votes
1 answer
119 views

Is there any evidence for tragedy of the commons or is it all actually the tragedy of private ownership?

The tragedy of the commons is sold as the idea that common property is over used, and thus arguments are made that there should be regulations over the commons, or it should be owned privately, ...
0 votes
1 answer
51 views

How do I derive optimal tax on pollution causing intermediate products?

I am reading "The Environment and Directed Technical Change" by Acemoglu et al. (2012). I cannot understand how the optimal tax in \eqref{eqA10} is derived. $$\tau_t = \frac{\omega_{t+1} \xi}...
-1 votes
1 answer
98 views

How Does Economics Address Society's Major Existential Threats?

Given our societal emphasis on the pace of 'progress', often overlooking its direction, we face a multitude of existential challenges [1]. These range from the looming threat of nuclear warfare and ...
0 votes
1 answer
218 views

Incidence of cap and trade [closed]

Is there a way to show the incidence of cap and trade in a diagram? Similar to how in an indirect tax graph you can show consumer and producer incidence. I assume that the consumer incidence of cap ...
2 votes
1 answer
76 views

International Spillovers of environmental policies

I'm trying to put together a literature review of papers tackling the international spillovers of environmental policies, particularly theoretical contributions. I haven't been able to find much. Any ...
2 votes
1 answer
170 views

Are they CO2 emission factors for primary energy consumption?

I'm searching for CO2 emission factors for primary energy consumption. What I mean by that is a table like the one below. Primary Energy CO2/kWh Coal . Oil . Natural Gases . Nuclear . ... . For ...
5 votes
0 answers
70 views

Empirical evidence on what makes a border adjustment successful at correcting a distortion without exporting externalities?

One of the challenges of constructing a national or regional market-correction scheme to remove the distortions from negative externalities, is that such a scheme is liable to create leakage: for ...
3 votes
0 answers
42 views

Does consumer demand in the secondhand market actually affect the firsthand market for high-cost goods

In the 21st Century, there is an increasing consumer awareness of the externalities of manufacturing and along with it a stronger consumer preference to buying used goods rather than new. My question ...
2 votes
1 answer
91 views

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 ...
1 vote
1 answer
86 views

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? ...
3 votes
0 answers
66 views

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 ...
2 votes
1 answer
144 views

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 ...
2 votes
2 answers
137 views

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 ...
1 vote
2 answers
171 views

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 ...
5 votes
3 answers
686 views

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 ...
1 vote
2 answers
179 views

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 ...
6 votes
3 answers
1k views

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 ...
1 vote
0 answers
109 views

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 ...
0 votes
1 answer
60 views

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 ...
1 vote
1 answer
91 views

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 ...
1 vote
1 answer
128 views

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 ...
7 votes
1 answer
532 views

What is William Nordhaus' contribution to the economics of climate change?

I'm trying to understand more about the economic repercussions of climate change. I'm unfamiliar with the specifics of the work of William Nordhaus, but it's been predicted in several instances that ...
9 votes
4 answers
874 views

Limits to Growth: Is environmental collapse by 2030 a likely scenerio?

According to a simulation from 1972, the results of which were published in 'The Limits to Growth' environmental collapse is due mid 21st century. The Guardian reports that Dr. Graham Turner reran the ...
2 votes
0 answers
46 views

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 ...
0 votes
2 answers
42 views

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 ...
5 votes
2 answers
117 views

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 ...
4 votes
0 answers
23 views

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. ...
1 vote
0 answers
31 views

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 ...
4 votes
2 answers
59 views

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 ...
5 votes
2 answers
144 views

Is ongoing economic growth possible without additional non-renewable inputs?

Can ongoing economic growth occur without use of additional non-renewable inputs? That is, any additional inputs would only be from renewable resources: all non-renewable resources would be reused, ...
16 votes
6 answers
4k views

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 ...
1 vote
1 answer
153 views

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 ...
4 votes
2 answers
114 views

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 ...
1 vote
1 answer
48 views

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 ...
0 votes
2 answers
156 views

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 ...
1 vote
0 answers
20 views

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 ...
2 votes
1 answer
101 views

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 ...
3 votes
1 answer
81 views

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 ...
9 votes
2 answers
5k views

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 ...
5 votes
0 answers
721 views

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 ...
0 votes
2 answers
46 views

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 ...
1 vote
1 answer
61 views

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 ...
2 votes
1 answer
22 views

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. ...