ENVIRONMENTAL ECONOMICS eJOURNAL
"On the Mitra-Wan Forest Management Problem in Continuous Time"
University Ca' Foscari of Venice, Dept. of Economics Research Paper Series No. 28
GIORGIO FABBRI, Parthenope University - Dipartimento di Studi Economici
SILVIA FAGGIAN, Ca Foscari University of Venice - Department of Economics
GIUSEPPE FRENI, University of Naples
The paper provides a continuous time version of the well known discrete time Mitra-Wan model of optimal forest management, where a forest is harvested to maximize the utility of timber flow over an infinite time horizon. Besides varying with time, the state variable (describing available trees) and the other parameters of the problem vary continuously also with respect to the age of the trees. The evolution of the system is given in terms of a partial differential equation and later rephrased as an ordinary differential equation in an infinite dimensional space. The paper provides a classification of the behavior of optimal and maximal programs when the utility function is linear, convex, or strictly convex and the discount rate is positive or null. Formulas are provided for modified golden-rule configurations (uniform density functions with cutting at the ages that solve a Faustmann problem) and for Faustmann policies, and the optimality or maximality of such programs is discussed. In all different sets of data, it is shown that the optimal (or maximal) control is necessarily something more general than a function, i.e. a positive measure. In particular, in the case of strictly concave utility and null discount, when the Faustmann policy is not optimal, it is shown that optimal paths converges over time to the golden rule configuration, while in the case of strictly concave utility and positive discount the Faustmann policy is shown to be not optimal, contradicting the corresponding result in discrete time.
"Two Decades of European Climate Policy: A Critical Appraisal"
ZenTra Working Paper in Transnational Studies No. 21/2013
CHRISTOPH BÖHRINGER, University of Oldenburg - Economic Policy, Centre for European Economic Research (ZEW)
Climate change ranks high on the policy agenda of the European Union (EU) which considers itself as a leading force in the battle against anthropogenic climate change. The EU is committed to the objective of limiting the rise in global average temperature to no more than 2°C above pre-industrial levels to prevent dangerous anthropogenic interference with the climate system. This article provides a critical appraisal of two decades of EU climate policy. Based on the global nature of climate change, we present three criteria for sound unilateral action and evaluate current EU climate policy against these criteria. We find that the actual implementation of EU climate policies is likely to make emission abatement much more costly than necessary.
"The Life-Cycle of International Regimes: Temporality and Exclusive Forms of International Cooperation"
LLEWELYN HUGHES, George Washington University
JEFFREY SCOTT LANTIS, College of Wooster
MIREYA SOLIS, American University - School of International Service
In three important areas of international cooperation - global trade, nuclear security, and climate change - states are shifting away from inclusive multilateralism towards more exclusionary forms of interstate cooperation. In this article we offer an historical institutionalist account for the shift towards exclusive forms of international cooperation in these varied issue areas. We develop an analytical model of an institutional regime life-cycle, which proposes that as multilateralism matured in these policy arenas, changes in the payoff structure of regime membership created incentives for states to establish alternative institutions centered on the principles of selective and discriminatory cooperation. We conclude that incremental changes in the nature of international cooperation can transform institutional cooperation, and exclusive forms of cooperation in trade, nuclear nonproliferation, and climate change, should not be considered aberrations but rather part of the process of regime maturation.
"The Development of Ecotourism in the World: Azerbaijan Case"
8th Silk Road International Conference, May 24, 2013 – May 26, 2013
RUFAT MAMMADOV, Qafqaz University
HAZI EYNALOV, Qafqaz University
The importance of tourism in the economies of countries is increasing everyday. Every expenditure in tourism sector creates revivement in the economy and affects the economy in different ways. Increase in the development level of tourism in the country is observed with the increase in the share of it in the economy.
Recently there were changes in the tourist taste and consumption because of fast economic and technological developments in the world. Time by time the demands of new type of tourists require silence rest, far from sea, sand and sun, the rest in the leap of true nature, good service in a good room but not exaggerated, at the same time they require silent rest in virgin places where humans’ interfere is very limited.
That is why; ecotourism becomes one of the main forms of tourism nowadays. Many countries take advantage of the natural environment and build special infrastructure in order to benefit from ecotourism. Also the countries pay attention to the security issues in order to diminish the damages to the environment. For this purpose Azerbaijan Republic pays attention to the special villages in the pure nature, creates special investment opportunities for the investors in this sector and increases the safety and security issues in those regions. In the past few years Azerbaijan has done several steps in the development of ecotourism with the natural resources. Especially, the ecotourism activities are increasing in the mountainous villages that kept their natural beauty.
In this article, the importance of ecotourism, its effects in the tourism sector, the development perspectives, and its role in the economy have been stated. At the same time, world and Azerbaijan statistical information have been used.
"Efficiency and Acceptability of Climate Policies: Race Against the Lock-Ins"
Review of Environment, Energy and Economics (Re3), Forthcoming
JULIE ROZENBERG, CIRED, International Research Center on Environment & Development, France
ADRIEN VOGT-SCHILB, CIRED, Centre international de recherche sur l’environnement et le développement
STEPHANE HALLEGATTE, CIRED, International Research Center on Environment & Development, France, CNRM, Centre International de Recherches Météorologiques, France, World Bank
Policymakers have good reasons to favor capital-based policies - such as CAFE standards or feebates programs - over a carbon price. A carbon price minimizes the discounted cost of a climate policy, but may result in existing capital being under-utilized or scrapped before its scheduled lifetime, hurt the workers that depend on it, and inflict an immediate income drop. Capital-based policies avoid these obstacles, but can reach a given climate target only if implemented early enough. Delaying mitigation policies may thus create a political-economy lock-in (easier-to-implement policies become unavailable) in addition to the economic lock-in (the target becomes more expensive).
About this eJournal
This eJournal distributes working and accepted paper abstracts in the full range of subjects that comprise Environmental Economics. Topics include economic causes and consequences of environmental changes; tax and regulatory policies that affect the environment; markets for pollution rights and related issues; government policies toward the environment; valuation of environmental resources, "green accounting" and intergovernmental cooperation in environmental policy.
To submit your research to SSRN, sign in to the SSRN User HeadQuarters, click the My Papers link on left menu and then the Start New Submission button at top of page.
If your organization is interested in increasing readership for its research by starting a Research Paper Series, or sponsoring a Subject Matter eJournal, please email: RPS@SSRN.com
Economics Research Network (ERN), a division of Social Science Electronic Publishing (SSEP) and Social Science Research Network (SSRN)
ERN SUBJECT MATTER EJOURNALS
MICHAEL C. JENSEN
Harvard Business School, Social Science Electronic Publishing (SSEP), Inc., National Bureau of Economic Research (NBER), European Corporate Governance Institute (ECGI)
Please contact us at the above addresses with your comments, questions or suggestions for ERN-Sub.
Environmental Economics eJournal
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
WILLIAM D. NORDHAUS
Yale University - Department of Economics, National Bureau of Economic Research (NBER)
PAUL R. PORTNEY
University of Arizona - Eller College of Management
ROBERT N. STAVINS
Albert Pratt Professor of Business and Government, Harvard University - Harvard Kennedy School (HKS), University Fellow, Resources for the Future, Research Associate, National Bureau of Economic Research (NBER)
Mitchell Family Professor of Economics, Colby College - Department of Economics