# Questions tagged [environmental-economics]

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

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156 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 ...
102 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 ...
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 ...
31 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 ...
58 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 ...
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 ...
32 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 ...
30 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 ...
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. ...
108 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 ...
137 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 ...
132 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 ...
81 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 ...
30 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 ...
18 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 ...
27 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 ...
64 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 ...
79 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 ...
111 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 ...
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 ...
38 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 ...
68 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 ...
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 ...
95 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 ...
289 views

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 ...
15 views

### 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 ...
42 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 ...
57 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 ...
20 views

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. ...
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 ...
14 views

### 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, ...
36 views

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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### 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 ...
37 views

### 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 ...
177 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. ...
155 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 ...
109 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....
768 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 ...