Table of Contents

Targeted Carbon Tariffs - Carbon Leakage and Welfare Effects

Christoph Böhringer, University of Oldenburg - Economic Policy, Centre for European Economic Research (ZEW)
Brita Bye, Statistics Norway - Research Department
Taran Faehn, Statistics Norway - Research Department
Knut Einar Rosendahl, Norwegian University of Life Sciences, Statistics Norway - Research Department

Coastal Climate Change Adaptation and International Human Rights

Megan M. Herzog, UCLA School of Law

Volunteer and Satisfied? Rural Households’ Participation in a Payments for Environmental Services Programme in Inner Mongolia

Sylvie Démurger, University of Lyon 2 - Groupe d'Analyse et de Théorie Economique (GATE)
Adeline Pelletier, London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP)

Separated at Birth? Addressing the Twin Global Crises of Biodiversity and Climate Change

Daniel A. Farber, University of California, Berkeley - School of Law

Welfare Gains of the Poor: An Endogenous Bayesian Approach with Spatial Random Effects

Andres Ramirez Hassan, Universidad EAFIT - School of Economics and Finance - Center for Research in Economic & Finance (CIEF)
Santiago Montoya Blandón, Universidad EAFIT - School of Economics and Finance - Center for Research in Economic & Finance (CIEF)

Open Space in an Urban Area: Might There Be Too Much of a Good Thing?

Robert C. Ellickson, Yale Law School


ENVIRONMENTAL ECONOMICS eJOURNAL

"Targeted Carbon Tariffs - Carbon Leakage and Welfare Effects" Free Download
ZenTra Working Paper in Transnational Studies No. 51 / 2015

CHRISTOPH BÖHRINGER, University of Oldenburg - Economic Policy, Centre for European Economic Research (ZEW)
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BRITA BYE, Statistics Norway - Research Department
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TARAN FAEHN, Statistics Norway - Research Department
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KNUT EINAR ROSENDAHL, Norwegian University of Life Sciences, Statistics Norway - Research Department
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Climate effects of unilateral carbon policies are undermined by carbon leakage. To counteract leakage and increase global cost-effectiveness carbon tariffs can be imposed on the emissions embodied in imports from non-regulating regions. We present a theoretical analysis on the economic incentives for emission abatement of producers subjected to carbon tariffs. We quantify the impacts of different carbon tariff designs by an empirically based multi-sector, multi-region CGE model of the global economy. We find that firm-targeted tariffs can deliver much stronger leakage reduction and higher efficiency gains than tariff designs operated at the industry level. In particular, because the exporters are able to reduce their carbon tariffs by adjusting emissions, their competitiveness and the overall welfare of their economies will be less randomly and less adversely affected than in previously studied carbon tariff regimes. This beneficial distributional impact could facilitate a higher degree of legitimacy and legality of carbon tariffs.

"Coastal Climate Change Adaptation and International Human Rights" Free Download
Climate Change Impacts on Ocean and Coastal Law: U.S. and International Perspectives, ch. 27 (R. Abate ed., Oxford Univ. Press 2014)
UCLA School of Law Research Paper No. 15-12

MEGAN M. HERZOG, UCLA School of Law
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Legal claims related to coastal adaptation may play an important role in shaping international human rights law in the coming decades. Articulating stronger linkages between human rights law and coastal climate adaptation may help ensure that essential adaptation actions incorporate human rights considerations, thereby forestalling potential violations. Although the exact scope of the relationship between adaptation and human rights obligations is unsettled, a human rights-based approach to coastal climate change adaptation would not only reduce the risks of infringements but also contribute to improved adaptation planning and broader social development goals.

This chapter discusses the relationship between coastal climate change adaptation and international human rights legal protections. Part I begins with a brief overview of coastal climate change vulnerability, impacts, and adaptation. Part II then outlines the international human rights and climate change legal regimes and their linkages. Part III evaluates the utility of existing and emerging legal tools in preventing and responding to some of the potential human rights impacts of coastal climate change adaptation, and proposes strategies that governments could employ to reduce the risk of human rights violations.

"Volunteer and Satisfied? Rural Households’ Participation in a Payments for Environmental Services Programme in Inner Mongolia" Free Download

SYLVIE DÉMURGER, University of Lyon 2 - Groupe d'Analyse et de Théorie Economique (GATE)
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ADELINE PELLETIER, London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP)
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Using survey data from Inner Mongolia, this paper explores the role of stakeholder engagement in the implementation of the Sloping Land Conversion Programme (SLCP), a payments for environmental services programme designed to restore forest in degraded land. Based on the idea that volunteerism and satisfaction with the programme’s outcome are two important components of the programme’s viability, we successively analyse the intensity of households’ participation in the programme and their reported satisfaction with its economic achievement, which we relate to their stated volunteerism. We show that households’ participation intensity in the SLCP is primarily driven by land and location characteristics, and that these findings hold true whether or not the households voluntarily enrolled in the programme. Moreover, as far as participants’ satisfaction can be interpreted as an indicator of potential long-term support for the programme, our findings also support plausible sustainability for the programme.

"Separated at Birth? Addressing the Twin Global Crises of Biodiversity and Climate Change" Free Download

DANIEL A. FARBER, University of California, Berkeley - School of Law
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Climate change is a growing threat to biodiversity, particularly in hotspots such as tropical forests and coral reefs. At the same time, deforestation is a major source of carbon emissions. The REDD effort is an attempt to make positive use of this connection. But negative impacts are also possible, such as the destruction of tropical forests as an indirect result of U.S. corn ethanol production. More generally, biodiversity and climate change both raise issues about the legality and effectiveness of bottom-up actions in the absence of global agreement.

Finally, climate change and biodiversity threats both have links to the global food system. Sustainable aquaculture can reduce pressures on wild fish stocks. Conversion to agricultural use is a major threat to wild lands that store large amounts of carbon and harbor immense biodiversity. Increased crop yields, dietary changes, and population control can reduce those pressures, with both biodiversity and climate benefits.

"Welfare Gains of the Poor: An Endogenous Bayesian Approach with Spatial Random Effects" Free Download

ANDRES RAMIREZ HASSAN, Universidad EAFIT - School of Economics and Finance - Center for Research in Economic & Finance (CIEF)
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SANTIAGO MONTOYA BLANDÓN, Universidad EAFIT - School of Economics and Finance - Center for Research in Economic & Finance (CIEF)
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We introduce a Bayesian instrumental variable procedure with spatial random effects that handles endogeneity, and spatial dependence with unobserved heterogeneity. We take into account the endogeneity through a system of simultaneous equations where a conditional correlation between the stochastic errors captures the endogeneity, and exclusion restrictions are used to treat endogenous regressors. In addition, we propose a Bayesian hierarchical spatial framework to model spatial dependence and heterogeneity. A Gibbs sampling algorithm is used to draw samples from all our conditional posterior distributions. We find through a limited Monte Carlo experiment that our proposal works well in terms of point and interval estimates, as well as prediction, compared with other possible alternatives. Taking advantage of the fact that a Bayesian framework permits easily performing statistical inference related to complicated non-linear functions of parameter estimates, we apply our method to analyze the welfare effects on the poorest households generated by a process of electricity tariff unification. In particular, we deduce an Equivalent Variation measure from a logarithmic demand function and a budget constraint for a two-tiered pricing scheme. We find the posterior distribution of the Equivalent Variation, and estimate the welfare implications in a context where electricity tariffs decreased by as much as 17.53%. We find that 10% of the poorest municipalities attained welfare gains above 2% of their initial income.

"Open Space in an Urban Area: Might There Be Too Much of a Good Thing?" Free Download

ROBERT C. ELLICKSON, Yale Law School
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Numerous policies encourage the preservation of open space in urban areas. Two of many examples are large-lot zoning and tax benefits to donors of conservation easements. These policies rest on the plausible inference that an open space can benefit nearby residents, for instance, by enhancing scenic vistas and recreational opportunities. But commentators tend to underestimate the costs of open space. The key advantage of urban living is proximity to other people. Open spaces reduce urban densities, increase commuting times, and foster sprawl. I advance the heretical view that a metropolitan area can suffer from having too much open space, and briefly suggest some reforms, particularly in zoning and conservation-easement policy.

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

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University of Arizona - Eller College of Management

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