Table of Contents

An Emissions Trading Scheme for Australia: National and Regional Impacts

Philip D. Adams, Victoria University - Centre of Policy Studies
Brian R. Parmenter, Monash University - Department of Economics
George Verikios, Monash University - Centre of Policy Studies

The Clean Power Plan: Environmental Protector or Job Killer?

Rachel Marlowe, Widener University - School of Law

Response to Svoboda and Irvine (Ethical and Technical Challenges in Compensating for Harm Due to Solar Radiation Management Geoengineering)

Jesse Reynolds, Tilburg University - Department of European & International Public Law, Tilburg Sustainability Center

Implementing the Precautionary Principle in Urban Pest Management: The Quebec Experience

David Talbot, Laval University - Département de Management

When Power Plants Leave Town: Environmental Quality and the Housing Market in China

Guoying Deng, Sichuan University
Manuel A. Hernandez, International Food Policy Research Institute (IFPRI)
Shu Xu, Southwestern University of Finance and Economics (SWUFE)

Determinants of CO2 and SO2 Emissions: Empirical Evidence for Different Political Regimes

Maurizio Intartaglia, University of Sheffield - Department of Economics


ENVIRONMENTAL ECONOMICS eJOURNAL

"An Emissions Trading Scheme for Australia: National and Regional Impacts" Fee Download
Economic Record, Vol. 90, Issue 290, pp. 316-344, 2014

PHILIP D. ADAMS, Victoria University - Centre of Policy Studies
BRIAN R. PARMENTER, Monash University - Department of Economics
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GEORGE VERIKIOS, Monash University - Centre of Policy Studies
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Computable general equilibrium modelling in Australia is oriented towards providing inputs to the policy�formation process, a process that requires detail. We explain how the necessary level of detail can be provided using analysis of the potential economic impacts of a carbon price on the Australian economy that operates as part of a global emissions trading scheme. The global scheme sets the price and allocation of permits across countries. We find that domestic abatement falls well short of targeted abatement, Australia's GDP is 1.1 per cent lower relative to the basecase, and some industries and regions are vulnerable to employment losses.

"The Clean Power Plan: Environmental Protector or Job Killer?" Free Download

RACHEL MARLOWE, Widener University - School of Law
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It is an interesting debate when two pieces of our society so integral to our survival come to a head. The Clean Power Plan, a new proposed rule by the EPA to reduce carbon emissions, has sparked just such a battle. A clash between the environment and individual jobs is sure to garner public attention.

The Clean Air Act is among many 1970s environmental legislations. President Richard Nixon signed the Clean Air Act into law on December 31, 1970. Many Federal environmental acts were signed into law at that time as a result of growing citizen concern for the environment. The Clean Air Act created federal regulations and enforcement mechanisms within states that would control emissions coming from both stationary and mobile sources. The Clean Air Act’s main purpose has always been protecting the environment. This act placed the growth of American industry as a secondary concern to the importance of human health and the environment, so it only makes sense that any proposed rules, changes, or enforcement mechanisms would do the same. This article addresses those changes by way of the recently proposed Clean Power Plan.

The science community’s knowledge about the future of our climate has changed vastly since 1970 when we knew very little about the future of our climate and were only beginning to realize that carbon dioxide emissions may cause our planet to warm. In 2014, the science community reaffirmed that the problem of global climate change is very real and the effects on human health and the environment are as well. In response to increasing concern about the current state of our environment and growing information about global climate change, the EPA proposed a new rule establishing emissions guidelines for states to follow so they can develop plans to address greenhouse gas emissions from fossil fuel electric generating units. This rule would mandate a thirty percent cut in carbon emissions from the 2005 levels by the year 2030. This plan would develop state-specific goals for carbon dioxide emissions from power-related sources and continue progress already underway in reducing carbon dioxide emissions from fossil-fuel fired power plants.

"Response to Svoboda and Irvine (Ethical and Technical Challenges in Compensating for Harm Due to Solar Radiation Management Geoengineering)" Free Download

JESSE REYNOLDS, Tilburg University - Department of European & International Public Law, Tilburg Sustainability Center
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Svoboda and Irvine (S2014) consider possible compensation for harm from solar radiation management (SRM) geoengineering, implying that both SRM and compensation are futile efforts, bound to do more harm than good. However, the shortcomings of SRM and compensation for its potential negative secondary effects which they cite are found among three existing policy domains, which happen to intersect at the proposed compensation for SRM’s harms: socially organized responses to other complex problems (especially the provision of public goods), compensation (especially in complex situations), and climate change. An additional problematic aspect is that, to some degree, they stack the deck against SRM. SRM is indeed complex and challenging but Svoboda and Irvine fail to indicate why its case should be fundamentally different from these others. A more pragmatic approach, which asks what policies and avenues of research would be most likely to offer the greatest benefits may be more productive.

"Implementing the Precautionary Principle in Urban Pest Management: The Quebec Experience" Free Download

DAVID TALBOT, Laval University - Département de Management
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In Canada, the regulation of pesticides is a jurisdiction shared between federal, provincial and municipal governments. In Quebec, the sale of household insecticides increased by almost 600% between 1970 and 1990. The government adopted a code in April 2003 respecting pesticide management in urban environments. This article focuses on the factors that influenced policy-makers when adopting these green regulations. The data were gathered during a four-month observation period at the Quebec Ministry of Sustainable Development, Environment and Parks. More than 200 documents were analyzed and four key individuals were interviewed. In Quebec, pesticide management in urban settings represents a case in which decision-making was largely based on the precautionary principle. Thus, the potentially harmful effects of pesticides on human health and the environment took precedence over impacts on the economy. A number of pesticide manufacturers recently launched a challenge to these regulations, basing their claims on the free trade rules set out under chapter 11 of NAFTA. Nevertheless, other Canadian provinces have decided to adopt legislation governing the use of pesticides for aesthetic purposes.

"When Power Plants Leave Town: Environmental Quality and the Housing Market in China" Free Download

GUOYING DENG, Sichuan University
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MANUEL A. HERNANDEZ, International Food Policy Research Institute (IFPRI)
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SHU XU, Southwestern University of Finance and Economics (SWUFE)
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Air pollution is a major environmental issue in China resulting in widespread health and ecological problems. This paper exploits the relocation of two major power plants in Chengdu, China as a quasi-natural experiment to examine the effect of changes in the quality of the environment on the housing market. We use an extensive transaction dataset of new apartment units to analyze variations in housing prices and volume of transactions in the affected areas compared to neighboring areas. The estimation results are consistent with the predictions of a hedonic price model. We find that the closure of the power plants is associated with over a 6% increase in prices and a 65-108% rise in the volume of weekly transactions. We further observe a higher increase in prices among more expensive houses. The estimated gross value of the closures is up to 88.8 million US dollars over the first ten months after the relocation of the two plants.

"Determinants of CO2 and SO2 Emissions: Empirical Evidence for Different Political Regimes" 

MAURIZIO INTARTAGLIA, University of Sheffield - Department of Economics
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This paper provides an empirical assessment of the impact of the main driving forces underling CO2 and SO2 emissions across political regimes. Depending on the air pollutant and the political regime, the relationship between per capita GDP and emissions levels is either linear or inverted-U shaped. The estimates display that the adverse impact of increasing levels of population on air quality is generally less strong under non-democracies than under democracies. Conversely, the adverse impact of greater trade openness is stronger under nondemocracies than under democracies. Finally, the impact of youth on SO2 emissions turns out to be statistically significant for democracies only.

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Professor, University of Illinois at Urbana-Champaign - Department of Finance, National Bureau of Economic Research (NBER), CESifo (Center for Economic Studies and Ifo Institute)

LAWRENCE H. GOULDER
Shuzo Nishihara Professor of Environmental and Resource Economics, Stanford University - Department of Economics, Research Associate, National Bureau of Economic Research (NBER), University Fellow, Resources for the Future

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Yale University - Department of Economics, National Bureau of Economic Research (NBER)

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Mitchell Family Professor of Economics, Colby College - Department of Economics