Can decentralized planning really achieve first-best in the presence of environmental spillovers?

It is generally accepted that decentralized policy choice in the presence of interjurisdictional spillovers is inefficient. Strikingly, Ogawa and Wildasin (2009) find that in a model with heterogenous jurisdictions, interjurisdictional capital flows, and interjurisdictional environmental damage spillovers, decentralized planning outcomes are equivalent to that under a centralized planner. We first show the critical importance of two key assumptions (no retirement of capital, fixed environmental damages per unit of capital) in obtaining this result. Second, we consider a more general model allowing for capital retirement and abatement activities and show that the outcome of a decentralized market generally differs from the solution of a centralized planner?s social welfare-maximizing problem.     

Is Chinese trade policy motivated by environmental concerns?

This paper analyses whether China's export VAT rebates and export taxes are driven by environmental concerns. Since China struggles to enforce environmental regulation, trade policy can be used as a second-best environmental policy. In a general equilibrium model it is possible to show that the second-best export tax increases in a product's pollution intensity. The empirical analysis investigates whether the export tax equivalent of partial VAT rebates and export taxes are higher for products which are more pollution intensive along several dimensions. The results indicate that the VAT rebate rates are set in a way that discourages exports of water pollution intensive, SO₂ intensive and energy intensive products from 2007 on. Moreover, the conservation of natural resources such as minerals, metals, wood products and precious stones seems to be a key determinant of China's export VAT rebate rates. There is little evidence that export taxes are motivated by environmental concerns.     

Scales of integration for sustainable development governance

Efforts at integration are central in the Sustainable Development Goals and the wider Post-2015 Sustainable Development Agenda. While integration forms a major focus of this agenda, there are fundamental limitations on pursuing this focus. The global governance discussions on integration lack a clear conceptualization of what it is, do not have any tools for measurement or assessment, and are narrowly focused around policy integration between global institutions. This article develops a framework for conceptualizing cross-level and cross-scale integration which addresses these problems and introduces the opportunities and challenges of pursuing different types of integration in global governance. Cross-level integration involves governance efforts which seek to bridge similar institutions with one another (for example, bringing together efforts by environmental ministries and development ministries). Cross-scale integration, in contrast, deals with governance efforts that bring together institutions which have distinct scopes, jurisdictions, and epistemologies. With this important distinction, the article explores the opportunities for cross-scale integration as part of the global sustainable development efforts and particularly expanding the policy integration focus with spatial and temporal integration as well. The conclusion uses the Earth System Governance perspective to focus on the trade-offs that are likely as wider forms of institutional integration are pursued beyond environmental mainstreaming and policy integration.     

Environmental policy and human capital inequality: A matter of life and death

This paper analyzes the economic implications of an environmental policy when we account for the life expectancy of heterogeneous agents. In a framework in which everyone suffers from pollution but health status also depends on individual human capital, we find that the economy may be stuck in a trap in which inequality rises steadily, especially when the initial pollution intensity of production is too high. We emphasize that such inequality is in the long run costly for the economy in terms of health and growth. Therefore, we study whether a tax on pollution associated with an investment in pollution abatement can be used to address this situation. We show that a stricter environmental policy may allow the economy to escape from the inequality trap while enhancing the long-term growth rate when the initial inequality in human capital is not too large.     

Lagged effect of exports,industrialization and urbanization on carbon footprint in Southeast Asia

The study aims to examine lagged causal effect of economic development policies on the carbon footprint of Southeast Asia. This study employs unit root test, cointegration test and panel data analysis methods to examine endogeneity concerns in observational data. The study applies panel data analysis methods to address unobserved country effect in the model. The balanced panel data includes a total of 240 observations with five cross sections of five nations in Southeast Asia and with 48 time-specific periods of 1970–2017. The results indicate that (1) exports, industrialization, urbanization and economic growth have lagged negative effect on the carbon footprint of the region in the short-run, and (2) there exists a long-run equilibrium relationship among exports, industrialization, urbanization, economic growth and carbon footprint in the region. The findings suggest that the economic growth, exports, industrialization and urbanization of the developing countries in Southeast Asia have been achieved at the cost of increasing the carbon footprint of the region. The findings imply that the environmental policy of the export-led growth countries never have been effective so far since the nations have achieved their economic growth at the high cost of harming the environment of the nations.     

Strategic pollution control and capital tax competition

In an analytical model of symmetric countries with mobile capital and local or transboundary pollution we investigate whether competition in emissions taxes (or emissions caps) and capital taxes leads to efficient outcomes when governments act strategically. When they have capital taxes and emissions caps at their disposal, they refrain from taxing capital and set their caps inefficiently lax [efficient] for transboundary [local] pollution. When they have the option to tax capital and emissions, capital is subsidized [untaxed] and emissions taxes are inefficiently low [efficient] for transboundary [local] pollution. In case of transboundary pollution emissions caps are Pareto-superior to emissions taxes. That holds regardless of whether the environmental policy is applied as stand-alone policy or combined with capital tax competition.     

Pollution and Capital Markets in Developing Countries

It is said that firms in developing countries do not have incentives to invest in pollution control because of weak implementation of environmental regulations. This argument assumes that the regulator is the only agent that can create incentives for pollution control, and ignores that capital markets, if properly informed, may provide the appropriate financial and reputational incentives. We show that capital markets in Argentina, Chile, Mexico, and the Philippines do react to announcements of environmental events, such as those of superior environmental performance or citizens' complaints. A policy implication is that environmental regulators in developing countries may explicitly harness those market forces by introducing structured programs of information release pertaining to firms' environmental performance: public disclosure mechanisms in developing countries may be a useful model to consider given limited government enforcement resources.     

利用私人资本进行环保基础设施建设

借助私人资本进行环保基出设施建设已经成为世界性的潮流，我国要解决环保“十五”计划巨大的投资任务，也必须将私人资本引入到环保基础设施中来。引入私人资本进行环保基础设施建设有两条途径，一是成立国家环保基金扶持私营环保企业的发展，二是通过资本市场吸引私人资本进入环保基础设施领域。     

The production of exclusive spaces in coastal pre-urban areas: Causes and motivations: Middle shoreline of Caspian Sea in north of Iran

The most common form of building in coastal peri-urban area, in middle shoreline of Caspian Sea in North of Iran, is gated community with the exclusive ownership and restricted access to the public shoreline. This research aims to clear the main causes, motivations and mechanism of exclusive space production in North of Iran. In contrast to the fact that many studies revealed as gated communities rose from the service-base motivations of the residents such as safety and high quality of the environment, this research shows the market-base motivations for living inside the gates. The factors of maintaining and increasing the property capital and protecting the family prestige are the main motivations for residence in gated communities in North of Iran. Due to the privileged life style and importance of agricultural lands for building gated communities, the main incentive of land owners for selling the agricultural lands is to derive benefit from selling lands and saving financial capital in Banks, instead of agricultural activities. The negligence of regulations in guidance and control of agricultural lands and in the processes of land use changes, causes the effectiveness of informal relations and illegal production of exclusive space in the context of environmental lands.     

The Impact of Economics on Environmental Policy

Environmental economists have seen their ideas translated into the rough-and-tumble policy world for over two decades. They have witnessed the application of economic instruments to several environmental issues, including preserving wetlands, lowering lead levels, and curbing acid rain. This essay examines the impact of the rise of economics in the policy world on the making of environmental policy. I focus on two related, but distinct phenomena—the increasing interest in the use of incentive-based mechanisms, such as tradable permits, to achieve environmental goals; and the increasing interest in the use of analytical tools such as benefit–cost analysis in regulatory decision making.I argue that economists and economic instruments have had a modest impact on shaping environmental, health, and safety regulation, but that economists will play an increasingly important role in the future. Although the role of economics is becoming more prominent, it does not follow that environmental policy will become more efficient. This apparent inconsistency can be explained by the political economy of environmental policy.     

Intergenerational equity: The capital-environment trade-off

This paper examines the trade-off between capital accumulation and environmental quality that determines an intergenerationally equitable program according to the Rawls maximin criterion. This trade-off is explored by an analysis of regular maximin programs in the framework developed by Brock. This results in a constant utility path supported by competitive prices with government imposed effluent charges and environmental rentals. Sufficient conditions for a regular maximin path to satisfy a Hartwick rule in deciding on the combination of capital and environmental quality left to future generations are given.     

Two-goal environmental policy: An integration of micro and micro ad hoc decision rules

A method of predicting and comparing the immediate impact of different environmental policies and of selecting the optimal policy is suggested in this paper. The degradation of water quality by a polluting industry is used to demonstrate this approach. Aggregation over this industry consists of firms with “putty clay” properties in production, and credit constraints in the capital market generate the macrorelations. The macrorelations which depend on the level of the policy variables are expressed in terms of probabilities and moments of the distribution of the microrelations and are used for different planning purposes.     

Conservation and social outcomes of private protected areas

Government administered protected areas (PAs) have dominated conservation strategies, discourse, and research, yet private actors are increasingly managing land for conservation. Little is known about the social and environmental outcomes of these privately protected areas (PPAs). We searched the global literature in English on PPAs and their environmental and social outcomes and identified 412 articles suitable for inclusion. Research on PPAs was geographically skewed; more studies occurred in the United States. Environmental outcomes of PPAs were mostly positive (89%), but social outcomes of PPAs were reported less (12% of all studies), and these outcomes were more mixed (65% positive). Private protected areas increased the number or extent of ecosystems, ecoregions, or species covered by PAs (representativeness) and PA network connectivity and effectively reduced deforestation and restored degraded lands. Few PPA owners reported negative social outcomes, experienced improved social capital, increased property value, or a reduction in taxes. Local communities benefited from increased employment, training, and community-wide development (e.g., building of schools), but they reported reduced social capital and no significant difference to household income. The causal mechanisms through which PPAs influence social and environmental outcomes remain unclear, as does how political, economic, and social contexts shape these mechanisms. Future research should widen the geographical scope and diversify the types of PPAs studied and focus on determining the casual mechanisms through which PPA outcomes occur in different contexts. We propose an assessment framework that could be adopted to facilitate this process.     

Renewable Resource Economists and Policy: What Differences Have We Made?

This paper surveys developments in fisheries economics and fisheries policy over the past half century. Early work clarified the nature of the economic issues associated with open access, laying the groundwork for changes in policies after coastal nations expanded their jurisdictions in 1976. Perhaps the most important point made by economists is that property rights matter and that open-access conditions create economic as well as biological problems. The policy process has begun to create property rights systems, although many of the world's fisheries still operate under mixed systems of regulations and open access incentives.     

The Declining Influence of Science On Marine Environmental Policy

Differences between the scientific and environmental policy communities regarding marine environmental protection strategies are discussed in the context of the nature and extent of scientific influence on marine environmental policy. Public perceptions of the nature and severity of marine pollution frequently differ from scientific assessments. the thesis of this paper is that the increasing influence of public perception on marine environmental protection policy is leading to the adoption of simplistic and unnecessarily extreme approaches to marine pollution prevention and to a reduced reliance on science. This trend is illustrated by some recent international developments and some suggestions are made towards enhancing the influence of science on marine protection policy.     

The Declining Influence of Science On Marine Environmental Policy

Abstract

Differences between the scientific and environmental policy communities regarding marine environmental protection strategies are discussed in the context of the nature and extent of scientific influence on marine environmental policy. Public perceptions of the nature and severity of marine pollution frequently differ from scientific assessments. the thesis of this paper is that the increasing influence of public perception on marine environmental protection policy is leading to the adoption of simplistic and unnecessarily extreme approaches to marine pollution prevention and to a reduced reliance on science. This trend is illustrated by some recent international developments and some suggestions are made towards enhancing the influence of science on marine protection policy.     

Realities of offering advice to governments on CITES

What happens when those who provide conservation advice are required to take policy and management action based on that advice? Conservation advocates and scientists often try to prompt regulatory change that has significant implications for government without facing the challenge of managing such change. Through a case study, we placed ourselves in the role of the government of Thailand, facing obligations to seahorses (Hippocampus spp.) under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). These obligations include ensuring that its exports of seahorses do not damage wild populations. We applied a CITES-approved framework (which we developed) to evaluate the risks of such exports to 2 seahorse species. We used the framework to evaluate the pressures that put wild populations of the species at risk; whether current management mitigates the risk or offsets these pressures; and whether the species is responding as hoped to management policy. We based our analysis on information in published and grey literature, local knowledge, citizen science data, results of government research, and expert opinion. To meet CITES obligations, exports of both species would need to be prohibited until more precautionary adaptive management emerged. The risk of any exports of Hippocampus trimaculatus was above a tolerable level because of a lack of appropriate management to mitigate risks. In contrast, the risk of any exports of Hippocampus kuda could become tolerable if monitoring were put in place to assess the species’ response to management. The process we developed for Authorities to determine risk in response to CITES guidelines was challenging to implement even without the need for government to consider social implications of conservation action. Despite the imperfections of our risk evaluation, however, it still served to support adaptive management. Conservationists need to keep implementation in mind when offering advice.     

Analysis of the current situation of environmental policy of China and establishment of distributed environmental policy framework

In this study, China’s current macro-environmental policies as well as their implementation and management tools are analyzed. By using the basic economic methodology, detailed studies are conducted focusing on the implementation effect of contemporary China’s typical environmental policy of the total pollutant discharge quantity control type, and also the two types of environmental management tools are compared from the perspective of implementation costs and policy uncertainty. By introduction of distributed management tools into the implementation of environmental policies, market-oriented means and the methods of economic analysis are introduced into environmental policy decision-making mechanisms, which could afford a new method for changing the current relatively low efficiency of environmental policy, solving the problem of “government failure” in environmental policy implementation, and providing a new way to make environmental policy system more flexible and more efficient. It is of great practical significance to solve China's current structural, complex and accumulative environmental problems.