[en] Economists typically extol the virtues of marketable discharge permits based on their ability to obtain a given environmental standard at least cost. Previous empirical studies of marketable permits have quantified the benefits from the use of permits relative to a command-and-control system in terms of cost savings. Occasionally, the benefits of a permit system are described by noting that the efficiency of such systems would allow improved environmental quality relative to a command-and-control system for the same cost. That is, the increased efficiency resulting from a permit system would allow environmental regulators to tighten emission standards, resulting in less pollution while still holding costs at their initial level. This paper presents a simple conceptual model that examines the potential emission savings from a marketable permit system. The conceptual model is empirically implemented with data on abatement costs for light-duty vehicles in California. The emission saving potential is directly compared with the cost saving potential. Although cost savings from a marketable permit system in this context are found to be relatively modest, on the order of 1% to 10%, the emission savings potential is found to be much larger. Estimates of the emission savings possibilities range from about 7% to 65%

[en] A physiologically based population dynamics model of a renewable resource is used as the basis to develop a model of human harvesting. The model incorporates developing technology and the effects of market forces on the sustainability of common property resources. The bases of the model are analogies between the economics of resource harvesting and allocation by firms and adapted organisms in nature. Specifically, the paper makes the following points: (1) it shows how economic and ecological theories may be unified; (2) it punctuates the importance of time frame in the two systems (evolutionary versus market); (3) it shows, contrary to prevailing economic wisdom, how technological progress may be detrimental to resource preservation; (4) it shows how the anticipated effects of high discount rates on resource use can be catastrophic when synergized by progress in harvesting technology; (5) it suggests that increases in efficiency of utilization of the harvest encourages higher levels of resource exploitation; and (6) it shows the effects of environmental degradation on consumer and resource dynamics. The model leads to global implications on the relationship between economic growth and the ability of modern societies to maintain the environment at a sustainable level

[en] Despite growing manifestations of global warming and the commitment of most nations to move towards reducing greenhouse gas (GHG) emissions, a simple device that can be effective in reducing GHG emissions continues to be overlooked or even rejected. This is to acknowledge the fact that carbon emissions inflict global costs that are not borne by emitters. This paper advocates that all activities emitting or saving carbon emissions should internalize the carbon cost inflicted or avoided by new projects involving CO₂. Considering the current wide range of carbon cost estimates, the paper recommends that a two-stage approach be adopted. Firstly, incorporate carbon costs in project analysis only theoretically in order to differentiate objectively among alternative designs involving carbon emissions of varying degrees. Different estimates of the costs of a ton of carbon would be used in order to test the sensitivity of rates of return to alternative carbon costs. While this process would have the effect of screening the allocation of scarce investment funds among projects that affect global warming in different degrees, it should be viewed as only a first step. Secondly, we advocate a rigorous process of passing through estimated carbon costs to the ultimate users of the services of carbon-emitting projects and processes. It is this ultimate process that will secure the urgently needed transition from the current dependence on fossil fuels to more benign sources of energy that would reduce climate-change risks. Since the time available is limited, the paper points out the urgency of these proposals that are crucial for sustainability

[en] This paper discusses some of the elements that may characterise an efficient strategy to adapt to a changing climate. Such a strategy will have to reflect the long time horizon of, and the prevailing uncertainties about, climate change. An intuitively appealing approach therefore seems to be to enhance the flexibility and resilience of systems to react to and cope with climate shocks and extremes, as well as to improve information. In addition, in the case of quasi-irreversible investments with a long lifetime (e.g. infrastructure investments, development of coastal zones), precautionary adjustments may be called for to increase the robustness of structures, or to increase the rate of depreciation to allow for earlier replacement. Many of these measures may already have to be considered now, and could be worthwhile in their own right, independent of climate change considerations

[en] This paper aims to show the utility of the so-called Social Accounting Matrix and Environmental Accounts (SAMEA) for economic and environmental efficiency analysis. The article uses the SAMEA for Spain in 2000, applied to water resources and greenhouse gas emissions. This matrix is used as a central core of a multisectorial model of economic and environmental performance, and it calculates the denominated 'domestics SAMEA multipliers' and their decomposition into characteristic, direct, indirect and induced effects. These multipliers show some evaluation of economic and environmental efficiency. Also, we present an application of these multipliers that demonstrates that there is no causal interrelation between those sectors with higher economic backward linkages and those with higher environmental deterioration backward linkages. (author)

[en] There is general agreement amongst economists and ecologists that transportation is an important contributor to greenhouse gas emissions. Typical proposals to reduce the demand for transportation, and consequently emissions, focus on imposing a fuel tax or a direct fee on vehicles. This paper outlines the method and advantages of treating the environmental risk as additional pseudo coverage rated under existing property and liability motor vehicle insurance systems. (author)

[en] This paper uses a new panel data set on state-level sulfur dioxide and nitrogen oxide emissions from 1929-1994 to test the appropriateness of the 'one size fits all' reduced-form regression approach commonly used in the environmental Kuznets curve literature. Empirical results provide initial evidence that an inverted-U shape characterizes the relationship between per capita emissions and per capita incomes at the state level. Parameter estimates suggest, however, that previous studies, which restrict cross-sections to undergo identical experiences over time, may be presenting statistically biased results. 25 refs

[en] Learning curves have recently been widely adopted in climate-economy models to incorporate endogenous change of energy technologies, replacing the conventional assumption of an autonomous energy efficiency improvement. However, there has been little consideration of the credibility of the learning curve. The current trend that many important energy and climate change policy analyses rely on the learning curve means that it is of great importance to critically examine the basis for learning curves. Here, we analyse the use of learning curves in energy technology, usually implemented as a simple power function. We find that the learning curve cannot separate the effects of price and technological change, cannot reflect continuous and qualitative change of both conventional and emerging energy technologies, cannot help to determine the time paths of technological investment, and misses the central role of R and D activity in driving technological change. We argue that a logistic curve of improving performance modified to include R and D activity as a driving variable can better describe the cost reductions in energy technologies. Furthermore, we demonstrate that the top-down Leontief technology can incorporate the bottom-up technologies that improve along either the learning curve or the logistic curve, through changing input-output coefficients. An application to UK wind power illustrates that the logistic curve fits the observed data better and implies greater potential for cost reduction than the learning curve does. (author)

[en] The field of ecological economics includes both economic analysis on the one hand, and discussions of normative values and visions for society, on the other. Using feminist insights into cultural beliefs about the relative 'hardness' and 'softness' of these two sides, this essay discusses how ecological economists can use this unique 'between' space in order to better inform policy. The current crisis of global climate change, it is argued, requires that economists move beyond modeling and measurement, while ecological thinkers need to re-examine beliefs about markets and profit. (author)

[en] Human use of biomass has become a major component of the global biogeochemical cycles of carbon and nitrogen. The use of land for biomass production (e.g. cropland) is among the most important pressures on biodiversity. At the same time, biomass is indispensable for humans as food, animal feed, raw material and energy source. In order to support research into these complex issues, we here present a comprehensive assessment of global socioeconomic biomass harvest, use and trade for the year 2000. We developed country-level livestock balances and a consistent set of factors to estimate flows of used biomass not covered by international statistics (e.g. grazed biomass, crop residues) and indirect flows (i.e. biomass destroyed during harvest but not used). We found that current global terrestrial biomass appropriation amounted to 18.7 billion tonnes dry matter per year (Pg/yr) or 16% of global terrestrial NPP of which 6.6 Pg/yr were indirect flows. Only 12% of the economically used plant biomass (12.1 Pg/yr) directly served as human food, while 58% were used as feed for livestock, 20% as raw material and 10% as fuelwood. There are considerable regional variations in biomass supply and use. Distinguishing 11 world regions, we found that extraction of used biomass ranged from 0.3 to 2.8 t/ha/yr, per-capita values varied between 1.2 and 11.7 t/cap/yr (dry matter). Aggregate global biomass trade amounted to 7.5% of all extracted biomass. An analysis of these regional patterns revealed that the level of biomass use per capita is determined by historically evolved patterns of land use and population density rather than by affluence or economic development status. Regions with low population density have the highest level of per-capita biomass use, high-density regions the lowest. Livestock, consuming 30-75% of all harvested biomass, is another important factor explaining regional variations in biomass use. Global biomass demand is expected to grow during the next decades; the article discusses some options and possible limitations related to such a scenario. (author)