Questions tagged [environmental-economics]

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

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16
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6answers
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 ...
9
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2answers
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 ...
9
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4answers
777 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 ...
9
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1answer
523 views

Generalization of the Heckscher-Ohlin Model

The Heckscher-Ohlin Model is normally presented for the case of 2 countries, 2 factors of production and 2 traded goods, leading to statements that, subject to free trade and various other assumptions:...
8
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1answer
336 views

A market correction for an industry which has had long-run negative externalities

Take a market where there have been long-run negative externalities. That is to say, the negative externalities have been in place long enough to have played a part in the investment decisions for all ...
8
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1answer
168 views

What models exists for explaining the price of nonrenewable resources?

It seems to me that the seminal model for the price of nonrenewable resources is Hotelling's rule. However, as the Wikipedia article describes, Hotelling's rule has empirically performed poorly. I ...
7
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2answers
753 views

Could a Cap-and-Trade and a Carbon Tax both work together as a system to reduce carbon emissions?

For example, the European Union currently has a Carbon Emissions Trading Scheme in progress the ETS which acts to cap the amount of carbon dioxide released by large corporations. However, let us ...
7
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1answer
507 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 ...
6
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2answers
349 views

Does Abatement Cost Mean Cost of Reducing Emissions with Output Held Constant?

In the economics of pollution control, frequent reference is made to 'abatement cost' and/or 'marginal abatement cost'. Is it normally implicit in the use of these terms in economics that output is ...
6
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1answer
111 views

Pricing a negative externality under high uncertainty and severe non-linearity

Take a negative externality such as excess greenhouse gas emissions. We know some awkward things about the economic cost of this externality: There is fairly large uncertainty about the timing of ...
5
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2answers
134 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, ...
5
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3answers
173 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 ...
5
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3answers
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 ...
5
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2answers
232 views

Is a strong foundation in advanced microeconomic theory essential to study environmental economics at the graduate level?

Advanced theory of individual economic behaviour in production, consumption, and general equilibrium. Are these topics useful to study environmental economics a the graduate level, or is there not a ...
5
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1answer
82 views

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 ...
5
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1answer
58 views

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 ...
5
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2answers
112 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 ...
5
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1answer
224 views

Adjusting GDP for Environmental and Resource Impacts

It is widely recognised that GDP as conventionally measured does not reflect an economy’s impact on the environment and its consumption of natural resources. There have been various attempts to ...
5
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4answers
160 views

Is the international economic system too chaotic to "work towards" carbon emission reduction

I often get frustrated when I read calls to action on climate change. It goes something like this: "Solutions are within reach - but we must act now!" If one assumes that the international ...
5
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0answers
297 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 ...
5
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0answers
62 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 ...
4
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2answers
56 views

Data: Attitude towards global warming

I'm interested in data that reveals public opinion towards global warming in the US. It'd be best to have a time dimension to it, but I'm interested in data from around the year 2000. Since it is ...
4
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2answers
49 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 ...
4
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2answers
109 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 ...
4
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1answer
96 views

Effectiveness of recycling (consumer PET) plastic

Is recycling plastic, all things considered, efficient as compared to disposing of them and making new plastic? I'm looking in efficiency rates in free market environment and also full process of ...
4
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0answers
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. ...
4
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0answers
41 views

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 ...
3
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1answer
110 views

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. ...
3
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2answers
119 views

Are Parameter Estimates Unbiased If the Dependent Variable is a Per Capita Rate Based on Approximate Population Data?

Suppose we want to estimate a model: $Y_i = \beta_0 + \beta_1X_i + \epsilon_i\tag{1}$ where the $Y_i$ are averages or rates per capita for geographical regions or zones, so that if $Z_i$ is the ...
3
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1answer
69 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 ...
3
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1answer
163 views

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 ...
3
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0answers
185 views

Reference Request: Cost Benefit Analysis of Conversion of Undeveloped Land for Housing

London is surrounded by a "green belt", a large area which government policy has protected from housing development. The current high cost of housing in London has led some to advocate a selective ...
2
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2answers
88 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 ...
2
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2answers
358 views

List of behavioral economists [closed]

Even though there is a massive literature on behavioral economics, i couldn't find anywhere a list of economist that focus on that discipline. Since i am interested in environmental economics, i ...
2
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1answer
80 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 ...
2
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1answer
20 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. ...
2
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2answers
112 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 ...
2
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1answer
544 views

Has the "dismal theorem" practical implications?

The so-called "dismal theorem" asserts that we do not appropriately account for catastrophic scenarios which have very small probability of occurrence. It has been studied in details by Martin's ...
2
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1answer
84 views

Indirect Impacts Of The Netherlands Cutting Greenhouse Emissions?

On 24 June 2015, the Dutch District Court in The Hague ruled that the government must put policies in place to deliver, by 2020, cuts in the country's greenhouse gas emissions of at least 25%, ...
2
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1answer
156 views

What is the relation among "welfare economics", "institutional economics", "environmental economics" and "neoclassical economics"

I'm doing research about environmental economics, being myself a beginner in the subject. I got confused with the branches and subdivisions of the schools of thought. Is environmental economics a ...
2
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1answer
45 views

Macroeconomic formulas for global limited raw material economy exist?

Macroeconomics basic formulas are referring to a model in which the raw material are unlimited. Also the efficiency of production is a consequence of the pressure done by consumers (that buy the most ...
2
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0answers
37 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 ...
2
votes
1answer
115 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
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0answers
110 views

Accounting for Fixed Effects

I am an undergraduate student working on environmental economics research. The econometric specification I am using is the following: ln(Per.Capita.Dollars) = ln(Per.Capita.Dollars.lag) + Average....
2
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0answers
432 views

MDF/MAC emissions and policies

Bear with me - this is a long question. But I did do few of the parts, but I'm posting it because it seems necessary that you know what I previously did. Sorry for the "length"! Answers are given in ...
1
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2answers
121 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 ...
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2answers
106 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 ...
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2answers
87 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 ...
1
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1answer
61 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
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1answer
58 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 ...