Substitution between biofuels and fossil fuels: Is there a green paradox?

We show that (i) subsidies for renewable energy policies with the intention of encouraging substitution away from fossil fuels may accentuate climate change damages by hastening fossil fuel extraction, and that (ii) the opposite result holds under some specified conditions. We focus on the case of subsidies for renewable resources produced under increasing marginal costs, and assume that both the renewable resources and the fossil fuels are currently in use. Such subsidies have a direct effect and an indirect effect working in opposite directions. The direct effect is the reduction in demand for fossil fuels at any given price. The indirect effect is the reduction in the current equilibrium price for fossil fuels, which tends to increase the amount of fossil fuels demanded. Whether the sum of the two effects will actually result in an earlier or later date of exhaustion of the stock of fossil fuels depends on the curvature of the demand curve for energy and of the supply curve for the renewable substitute.     

Is there really a green paradox?

In the absence of a CO₂ tax, the anticipation of a cheaper renewable backstop increases current emissions of CO₂. Since the date at which renewables are phased in is brought forward and more generally future emissions of CO₂ will decrease, the effect on global warming is unclear. Green welfare falls if the backstop is relatively expensive and full exhaustion of fossil fuels is optimal, but may increase if the backstop is sufficiently cheap relative to the cost of extracting the last drop of fossil fuels plus marginal global warming damages as then it is attractive to leave more fossil fuels unexploited and thus limit CO₂ emissions. We establish these results by analyzing depletion of non-renewable fossil fuels followed by a switch to a clean renewable backstop, paying attention to timing of the switch and the amount of fossil fuels remaining unexploited. We also discuss the potential for limit pricing when the non-renewable resource is owned by a monopolist. Finally, we show that if backstops are already used and more backstops become economically viable as the price of fossil fuels rises, a lower cost of the backstop will either postpone fossil fuel exhaustion or leave more fossil fuel in situ, thus boosting green welfare. However, if a market economy does not internalize global warming externalities and renewables have not kicked in yet, full exhaustion of fossil fuel will occur in finite time and a backstop subsidy always curbs green welfare.     

Is there really a green paradox?

In the absence of a CO₂ tax, the anticipation of a cheaper renewable backstop increases current emissions of CO₂. Since the date at which renewables are phased in is brought forward and more generally future emissions of CO₂ will decrease, the effect on global warming is unclear. Green welfare falls if the backstop is relatively expensive and full exhaustion of fossil fuels is optimal, but may increase if the backstop is sufficiently cheap relative to the cost of extracting the last drop of fossil fuels plus marginal global warming damages as then it is attractive to leave more fossil fuels unexploited and thus limit CO₂ emissions. We establish these results by analyzing depletion of non-renewable fossil fuels followed by a switch to a clean renewable backstop, paying attention to timing of the switch and the amount of fossil fuels remaining unexploited. We also discuss the potential for limit pricing when the non-renewable resource is owned by a monopolist. Finally, we show that if backstops are already used and more backstops become economically viable as the price of fossil fuels rises, a lower cost of the backstop will either postpone fossil fuel exhaustion or leave more fossil fuel in situ, thus boosting green welfare. However, if a market economy does not internalize global warming externalities and renewables have not kicked in yet, full exhaustion of fossil fuel will occur in finite time and a backstop subsidy always curbs green welfare.     

Is there a relationship between soil and groundwater toxicity?

Part IIA of the Environmental Protection Act 1990 requires environmental regulators to assess the risk of contaminants leaching from soils into groundwater (DETR, 1999). This newly introduced legislation assumes a link between soil and groundwater chemistry, in which rainwater leaches contaminants from soil into the saturated zone. As the toxicity of both groundwater and overlying soils is dependent upon the chemicals present, their partitioning and their bioavailability, similar patterns of soil, leachates and groundwater toxicity should be observed at contaminated sites. Soil and groundwater samples were collected from different contaminated land sites in an urban area, and used to determine relationships between soil chemistry and toxicity, mobility of contaminants, and groundwater chemistry and toxicity. Soils were leached using water to mimic rainfall, and both the soils and leachates tested using bioassays. Soil bioassays were carried out using Eisenia fetida, whilst groundwater and leachates were tested using the Microtox test system and Daphnia magna 48 h acute tests. Analysis of the bioassay responses demonstrated that a number of the samples were toxic to test organisms, however, there were no significant statistical relationships between soil, groundwater and leachate toxicity. Nor were there significant correlations between soil, leachates and groundwater chemistry.     

Announcing climate policy: Can a green paradox arise without scarcity?

Unintended consequences of a pre-announced climate policy are studied within a framework that allows for competition between polluting and clean energy sources. We show that early announcement of a carbon tax gives rise to a “green-paradox,” in that it increases emissions in the interim period (between announcement and actual implementation), irrespective of the scarcity of fossil fuels. The paradoxical outcome is driven by consumption-saving tradeoffs facing households who seek to smooth consumption over time and holds both when the announced implementation date is taken as a credible threat and when households are skeptical about the (political) will or capability of the government to implement the policy as announced.     

Announcing climate policy: Can a green paradox arise without scarcity?

Unintended consequences of a pre-announced climate policy are studied within a framework that allows for competition between polluting and clean energy sources. We show that early announcement of a carbon tax gives rise to a “green-paradox,” in that it increases emissions in the interim period (between announcement and actual implementation), irrespective of the scarcity of fossil fuels. The paradoxical outcome is driven by consumption-saving tradeoffs facing households who seek to smooth consumption over time and holds both when the announced implementation date is taken as a credible threat and when households are skeptical about the (political) will or capability of the government to implement the policy as announced.     

Is there a double-dividend from anti-sprawl policies?

This paper examines the welfare effects of anti-sprawl policies, such as development tax, in a simple spatial explicit urban model with two market failures - urban decline at the city core and underprovision of open space amenities at the urban fringe - and pre-existing distortionary property tax, used to fund public services and improvements to mitigate urban decline. Consistent with prior double-dividend literature, there is a tax interaction effect that occurs between the development tax and the pre-existing property tax. However, there are two fundamental differences between the tax interaction effect identified here and that of prior literature. Ours one has two components: First, there is a cost-side tax interaction effect that is ‘spatially’ concentrated at the urban fringe, as only agents at the urban fringe alter their behavior in response to the development tax. Second, there is also a benefit-side tax interaction effect, as increases in open space at the urban fringe are capitalized into housing prices throughout the city. In contrast to prior literature, we find that the empirical importance of the combined tax interaction effect is of substantially less importance and, as a consequence, the likelihood of a ‘double-dividend’ is higher than in prior studies. Further, we show that the development tax should be part of the local tax system, even in the absence of open space benefits.     

State-of-the-science assessment of non-asbestos amphibole exposure: Is there a cancer risk?

The distinction between amphibole asbestos fibers and non-asbestos amphibole particles has important implications for assessing potential cancer risks associated with exposure to amphibole asbestos or amphibole-containing products. Exposure to amphibole asbestos fibers can pose a cancer risk due to its ability to reside for long periods of time in the deep lung (i.e., biopersistence). In contrast, non-asbestos amphibole particles are usually cleared rapidly from the lung and do not pose similar respiratory risks even at high doses. Most regulatory and public health agencies, as well as scientific bodies, agree that non-asbestos amphiboles possess reduced biological (e.g., carcinogenic) activity. Although non-asbestos amphibole minerals have been excluded historically from Federal regulations, non-asbestos structures may be counted as asbestos fibers on the basis of dimensional criteria specified in analytical protocols. Given the potential to mischaracterize a non-asbestos structure as a “true” asbestos fiber, our objective was to assess whether exposure to non-asbestos amphiboles that may meet the dimensional criteria for counting as a fiber pose a cancer risk similar to amphibole asbestos. We reviewed analytical methods as well as the mineralogical, epidemiological, and toxicological literature for non-asbestos amphiboles. No evidence of demonstrable cancer effects from exposure to non-asbestos amphiboles that may be counted as fibers, under certain assessment protocols, was found. Data gaps (industrial hygiene data for amphibole-exposed cohorts), inconsistencies (analytical laboratory methods/protocols used to count fibers), and sources of potential bias from misclassification of exposure were identified.     

Market interactions,farmers' choices,and the sustainability of growing advanced biofuels: a missing perspective?

Advanced biofuels such as cellulosic ethanol are of great interest in the USA. With agriculture being the major source of feedstock for advanced biofuels, how farmers would respond to markets and policy incentives in providing such feedstock can directly affect sufficient and sustainable supply of advanced biofuels and their environmental sustainability. In this study, we developed an economic model to examine farmers' production choices in a context where agricultural markets are linked to energy markets. We identified the economic conditions under which farmers could maximize their profits by converting current grain cropland to grow cellulosic biomass crops. An empirical illustration showed that with current technology, farmers are unlikely to grow switchgrass as a dedicated energy crop instead of corn on cropland. The biofuel incentives in the 2008 Farm Bill can improve the competitiveness of switchgrass, but may stimulate corn production as well, with corn residues as an alternative feedstock for advanced biofuels. The continuous, possibly expanding, corn production in future raises the same issues for advanced biofuels as for corn grain-based ethanol. To assure the environmental sustainability of advanced biofuel production, further research is needed to help design environmental policies alongside existing biofuel initiatives.     

Is there a different response to winds during migration between soaring and flapping raptors? An example with the Montagu’s harrier and the lesser kestrel

During migrations, birds have to cope with varying meteorological conditions, which shape their migratory routes and affect their performance. Amongst these, wind is the main meteorological agent influencing behaviour of birds in their migration journeys. Here we analyze the effect of winds during migrations of adult individuals of two raptor species tracked with satellite telemetry, the Montagu’s harrier (Circus pygargus) and the lesser kestrel (Falco naumanni). While harriers use mostly soaring flight, kestrels principally use flapping flight and thus, wind can differently affect these birds. We found that both forward and perpendicular winds significantly affected the movements of the Montagu’s harrier, which were drifted from their intended direction but also took advantage of tailwinds. On the contrary, lesser kestrels moved more regardless of forward winds, despite they were highly drifted by crosswinds. Our results also support that the drifting effect of winds at the onset of the spring migration may explain the loop migration observed for both species, with birds compensating later the effect of crosswinds to arrive to their breeding areas. Results presented here illustrate how winds can differently affect migrating birds according to their flight modes.     

Giving green to get green? Incentives and consumer adoption of hybrid vehicle technology

Federal, state, and local governments use a variety of incentives to induce consumer adoption of hybrid-electric vehicles. We study the relative efficacy of state sales tax waivers, income tax credits, and non-tax incentives and find that the type of tax incentive offered is as important as the generosity of the incentive. Conditional on value, sales tax waivers are associated with more than a ten-fold increase in hybrid sales relative to income tax credits. In addition, we examine how adoption varies with fuel prices. Rising gasoline prices are associated with greater hybrid vehicle sales, but this effect operates almost entirely through high fuel-economy vehicles. By comparing consumer response to sales tax waivers and estimated future fuel savings, we estimate an implicit discount rate of 14.6% on future fuel savings.     

The spatial nexus between population growth and land degradation in a dry Mediterranean region: a rapidly changing pattern?

A better understanding of the spatial linkage between the distribution of land vulnerable to degradation and long-term population growth may contribute to sustainable land management of dry regions. Such a nexus has received increasing attention among politicians and local stakeholders, as its complex outcomes depend on mutual interactions between socioeconomic and biophysical factors. This is particularly true in southern Europe, where important processes of land degradation (LD) have been observed in recent years. This paper analyses population growth (1871–2007) in southern Italy and questions its relationship with the level of land vulnerable to degradation. Results indicate that vulnerable lands were more likely associated with areas where population growth has determined environmental pressures on coastal areas and the neighbouring lowlands during 1950–1980. This pattern consolidated the socioeconomic polarisation between core and peripheral areas. Since the 1980s, however, southern Italy has experienced a phase of polycentric development, possibly determining a ‘decoupling’ between population density and land vulnerability to degradation. Population increased in moderately vulnerable areas but decreased in highly vulnerable areas. The policy implications of these results are discussed.     

Is ISO 14001 a gateway to more advanced voluntary action? The case of green supply chain management

Using Japanese facility-level data, we estimate the effects of ISO 14001 certification on the promotion of more advanced practices, namely green supply chain management (GSCM). Our results show that ISO 14001 promotes GSCM practices. Facilities with environmental management systems (EMS) certified to ISO 14001 are 40% more likely to assess their suppliers' environmental performance and 50% more likely to require that their suppliers undertake specific environmental practices. Further, government programs that encourage voluntary EMS adoption indirectly promote GSCM practices. These programs increase the probabilities that facilities will assess their suppliers' environmental performance and require suppliers to undertake specific environmental practices by 7% and 8%, respectively. Combined, these findings suggest that there may be significant but previously unnoticed spillover effects of ISO 14001 and government promotion of voluntary action.     

Innovation and diffusion of clean/green technology: Can patent commons help?

This paper explores the characteristics of 238 patents on 90 inventions contributed by major multinational innovators to the “Eco-Patent Commons”, which provides royalty-free access to third parties to patented innovations on green technologies. We compare the pledged patents to other patents in the same technologies or held by the same multinationals to investigate the motives of the contributing firms as well as the potential for such commons to encourage innovation and diffusion of climate change related technologies. We find pledged patents to protect environmentally friendly technologies and to be of similar value as the average patent in a pledging firm's patent portfolio but of lower value than other patents in their class. Our analysis of the impact of the patent commons on diffusion of patented technologies suggests that making patents accessible royalty-free did not result in any significant increase in diffusion as measured by citing patents. This study, therefore, indirectly provides evidence on the role of patents in the development and diffusion of green technologies.     

Recycling flows in emergy evaluation: A mathematical paradox?

This paper is a contribution to the emergy evaluation of systems involving recycling or reuse of waste. If waste exergy (its residual usefulness) is not negligible, wastes could serve as input to another process or be recycled. In cases of continuous waste recycle or reuse, what then is the role of emergy? Emergy is carried by matter and its value is shown to be the product of specific energy with mass flow rate and its transformity. This transformity (τ) given as the ratio of the total emergy input and the useful available energy in the product (exergy) is commonly calculated over a specific period of time (usually yearly) which makes transformity a time dependent factor. Assuming a process in which a part of the non-renewable input is an output (waste) from a previous system, for the waste to be reused, an emergy investment is needed. The transformity of the reused or recycled material should be calculated based on the pathway of the reused material at a certain time (T) which results in a specific transformity value (τ). In case of a second recycle of the same material that had undergone the previous recycle, the material pathway has a new time (T + T₁) which results in a transformity value (τ₁). Recycling flows as in the case of feedback is a dynamic process and as such the process introduces its own time period depending on its pathway which has to be considered in emergy evaluations. Through the inspiration of previous emergy studies, authors have tried to develop formulae which could be used in such cases of continuous recycling of material in this paper. The developed approach is then applied to a case study to give the reader a better understanding of the concept. As a result, a ‘factor’ is introduced which could be included on emergy evaluation tables to account for subsequent transformity changes in multiple recycling. This factor can be used to solve the difficulties in evaluating aggregated systems, serve as a correction factor to up-level such models keeping the correct evaluation and also solve problems of memory loss in emergy evaluation. The discussion deals with the questions; is it a pure mathematical paradox in the rules of emergy? Is it consistent with previous work? What were the previous solutions to avoid the cumulative problem in a reuse? What are the consequences?     

Nitrogen source apportionment—a comparison between a dynamic and a statistical model

A dynamic model, HBV-N, and a statistical model, MESAW, for nitrogen source apportionment were compared regarding model performance, model uncertainty and user applicability. The HBV-N model simulates continuous series of nitrogen concentrations with meteorological data and sub-basin characteristics as input. Diffuse nitrogen emissions are defined as regional model parameters which are calibrated by comparison of observed and simulated nitrogen data. The MESAW model uses nitrogen loads for a fixed time interval at each monitoring site as response variable and sub-basin characteristics as explanatory variables to estimate diffuse nitrogen emissions through non-linear regression analysis. The two models were applied in the Matsalu Bay watershed (3640 km²) in Estonia and the same land use and point sources data were used as input. Both models gave similar levels of diffuse total nitrogen emissions and retention rates, which also fit well with previous estimates made in Estonia and Scandinavia. A sensitivity analysis of the model parameters also showed similar uncertainty levels, which indicated that the model uncertainty was more dependent on the availability of nitrogen data and land cover distribution than the choice of model. Furthermore, the sensitivity analysis showed a parameter interdependency in both models, which implied the risk of compensation between estimated diffuse emissions and retention. In conclusion, however, the study showed that both models were capable of estimating nitrogen leakage from the dominating land classes and giving reliable source apportionment from the available input data. The study indicated that the HBV-N model has its advantage in assessments where detailed outputs are needed and when run-off data are limited, while the statistical MESAW model has its advantage in extensive studies since it is easily applied to large watersheds that have dense monitoring networks.