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Abstract:
With the gradual accession of some Central Eastern European Countries (CEECs) to the EU, international trade between EU and CEECs and the related environmental problems will definitely change because of the free trade and the mobility of production factors (labour and capital) within the EU. This paper investigates the consequences of the enlargement of the EU on trade and environment by general equilibrium modelling. A general equilibrium model with the sequential joint maximisation method is developed to examine the impacts under different environmental regimes. For illustrative purposes, the model is applied in a numerical example with two regions (EU and CEECs) and two goods (pollution intensive good A and clean good B). The model is also run for some important environmental policies. The result show that the 'coordinated policy in EU and CEECs' could be efficient to restrict the total emission level for uniformly mixing pollutants.

Trade and environment, environmental policy, AGE models, sequential joint maximisation, Negishi-format

Abstract:
This paper deals with an assessment of the economic costs of environmental policies in the Netherlands, using a dynamic Applied General Equilibrium model with bottom-up information on abatement techniques. Empirical abatement cost curves are used to determine substitution possibilities between pollution and abatement and the characteristics of abatement goods.

The results show that an absolute decoupling of economy and environment is possible. Smog formation is the most costly environmental theme, due to the absence of technical abatement options. For all environmental themes, the least-cost way to reduce emissions is via a combination of technical abatement measures and substantial economic restructuring.

Applied general equilibrium, Pollution abatement, Dynamics, Environmental policy, Netherlands

Abstract:
We empirically test stability of climate change coalitions with the STAbility of Coalitions model (STACO). The model comprises twelve world regions and captures important dynamic aspects of the climate change problem. We apply the stability concept of internal and external stability to a cartel formation game. It is shown that only if benefits from global abatement are sufficiently high, stable coalitions emerge, though they only marginally improve upon the Nash equilibrium. We explain this phenomenon by analyzing the individual incentive structure of all regions and relate our results to the predictions of theory.
Kyoto-Protocol, Cartel formation game, Non-cooperative game theory

International environmental agreements,

Abstract:
In this paper we discuss how a Decision Support System (DSS) for managing the marine environment can be set up. We use the Driving force-Pressure-State-Impact-Respond (DPSIR) framework to analyze which are the major driving forces impacting upon the marine environment in the North Sea. Moreover, a number of potential responses are identified. Furthermore, a preliminary and simplified optimization model has been set up and can be used in a DSS to decide on the best location of marine reserves for the protection of species. The model is based on a bio-economic metapopulation model that can be used to decide which parts of the sea should be opened for fisheries and which should be protected as marine reserve. It accounts for the dispersal of fish and considers both the economic returns from fisheries and the ecological value of marine biodiversity. A number of suggestions are given on how to extend and improve the DSS.

Decision Support System, Marine Biodiversity Conservation, DPSIR Framework, Bioeconomic Modeling, North Sea

Abstract:
This paper offers an economic value assessment of a nature protection programme in the Veluwe. This programme involves two defragmentation scenarios: the first scenario connects the central part of the Veluwe with the IJssel river forelands in a north-eastern direction, while the second scenario is focused on defragmentation in a south-western direction, where the Rhine river forelands are located. The valuation is based on a questionnaire that was administered during face-to-face interviews in the Veluwe area and through the Internet. We employ a contingent valuation approach to assess the respondents' willingness to pay for the realisation of the defragmentation scenarios. It appears that the mean willingness to pay for the two defragmentation scenarios are Euro 59.7 and Euro 162.2 per respondent. These two willingness-to-pay estimates, which refer to a lump sum payment (or 'once-and-for-all payment'), are based on a lognormal and Weibull distribution respectively. In addition to the willingness to pay, we also estimate recreation benefits of the Veluwe. To that end, we use the travel cost technique, the purpose of which is to arrive at an estimate of the site's consumer surplus. According to this technique, the yearly recreational benefits are estimated between Euro 0.06 and Euro 0.45 per visitor. Whereas the former estimate is based on the fuel costs only, the latter covers also insurance and maintenance costs, and capital depreciation. Finally, we performed an aggregation of individual WTP estimates over Dutch households. With the resulting aggregate estimates we are able to compare the total costs and benefits of the two scenarios for habitat fragmentation in the Veluwe. The result of such a simple comparison turns out to critically depend on whether the mean or median estimate is used for aggregation. If aggregation of individual WTP estimates is based on mean values, then the benefits far exceed the estimated costs of defragmentation. In other words, based on an integrated economic-ecological analysis it makes sense to execute the defragmentation measures described in the scenarios. However, aggregate estimates obtained by using median values result in higher costs than aggregate estimates that are based on mean values. Even stronger, median-based estimates show that the costs of implementing scenario 2 are higher than the total benefits of this scenario.

Economic value, Nature protection, Defragmentation policy, Veluwe