Regulatory attitudes and environmental innovation in a model combining internal and external R&D

The extent to which environmental regulatory institutions are either ‘green’ or ‘brown’ impacts not just the intensity of regulation at any moment, but also the incentives for the development of new pollution-control technologies. We set up a strategic model of R&D in which a polluter can deploy technologies developed in-house, or license technologies developed by specialist outsiders (an ‘eco-industry’). Polluters exert R&D effort and may even develop redundant technologies to improve the terms on which they procure technology from outside. We find that, while regulatory bias has an ambiguous impact on the best-available technology, strategic delegation to systematically biased regulators can improve social welfare.     

Co-benefits of post-2012 global climate mitigation policies

This paper provides an analysis of co-benefits for traditional air pollutants made possible through global climate policies using the Greenhouse Gas and Air Pollution Interactions and Synergies (GAINS) model in the time horizon up to 2050. The impact analysis is based on projections of energy consumption provided by the Prospective Outlook for the Long term Energy System (POLES) model for a scenario without any global greenhouse gas mitigation efforts, and for a 2°C climate policy scenario which assumes internationally coordinated action to mitigate climate change. Outcomes of the analysis are reported globally and for key world regions: the European Union (EU), China, India and the United States. The assessment takes into account current air pollution control legislation in each country. Expenditures on air pollution control under the global climate mitigation regime are reduced in 2050 by 250 billion € when compared to the case without climate measures. Around one third of financial co-benefits estimated world-wide in this study by 2050 occur in China, while an annual cost saving of 35 billion (Euros) € is estimated for the EU if the current air pollution legislation and climate policies are adopted in parallel. Health impacts of air pollution are quantified in terms of loss of life expectancy related to the exposure from anthropogenic emissions of fine particles, as well as in terms of premature mortality due to ground-level ozone. For example in China, current ambient concentrations of particulate matter are responsible for about 40 months-losses in the average life expectancy. In 2050, the climate strategies reduce this indicator by 50 %. Decrease of ozone concentrations estimated for the climate scenario might save nearly 20,000 cases of premature death per year. Similarly significant are reductions of impacts on ecosystems due to acidification and eutrophication.     

Community pressure for green behavior

The desire to avoid rousing community hostility may encourage firms to behave in an environmentally responsible manner. Firms may engage in corporate social responsibility (CSR) to maintain community support and/or to regain the support of a community where it has been lost. It has been conjectured that such ‘informal regulation’ could effectively replace formal intervention in some settings, and usefully complement it in others. We explore these conjectures with mixed results. Informal regulation is necessarily less efficient than a well-designed formal alternative and the pattern of green behavior induced by the threat of community hostility may increase or decrease welfare. The existence of community pressure may increase or decrease the optimal calibration of a formal intervention (in this case an environmental tax) and may complement or detract from the incentives generated by an optimally calibrated tax.     

Enforcement missions: Targets vs budgets

Enforcement of policy is typically delegated. What sort of mission should the head of an enforcement program be given? When there is more than one firm being regulated the firms’ decision problems—otherwise completely separate—become linked in a way that depends on that mission. Under some sorts of missions firms compete to avoid the attention of the enforcer by competitive reductions in the extent of their non-compliance, in others the interaction encourages competitive expansions. We develop a general model that allows for the ordering of some typical classes of missions. We find that in plausible settings ‘target-driven’ missions (that set a hard target in terms of environmental outcome but flexible budget) achieve the same outcome at lower cost than ‘budget-driven’ ones (that fix the enforcement budget). Inspection of some fixed fraction of firms is never optimal.     

Competing conservation goals, biodiversity or ecosystem services: element losses and species recruitment in a managed moorland-bracken model system

Conservation management in Europe is often geared towards restoring semi-natural ecosystems, where the objective is to reverse succession and re-establish early-successional communities, to comply with national and international conservation targets. At the same time, it is increasingly recognised that ecosystems provide services that contribute to other, possibly conflicting policy requirements. Few attempts have been made to define these conflicts. Here, we assess some potential conflicts using a Calluna vulgaris-dominated moorland invaded by bracken (Pteridium aquilinum) as a model system, where the current policy is to reverse this process and restore moorland. We examined impacts of bracken control treatments on services (stocks and losses of C and mineral nutrients), litter turnover and biodiversity within a designed experiment over 7 years. Bracken litter was >2000 g m(-2) in untreated plots, and treatments reduced this quantity, and its element content, to varying degrees. Cutting twice per year was the most successful treatment in reducing bracken litter and its element content, increasing litter turnover, and increasing both mass and diversity of non-bracken vegetation. Diversity was greatest where bracken litter had been reduced, but species composition was also influenced by light sheep grazing. There was a significant loss of some chemical elements from bracken that could not be accounted for in other pools, and hence potentially lost from the system. In absolute terms large amounts of C and N were lost, but when expressed as a percentage of the total amount in the system, Mg was potentially more important with losses of almost a third of the Mg in the surface soil-vegetation system. There is, therefore, a potential dilemma between controlling a mid-successional invasive species for conservation policy objectives, especially when that species has evolved to sequester nutrients, and the negative effect of increasing environmental costs in terms of carbon accounting required, the potential input of nutrients to aquatic systems, and long-term nutrient loss. There is, therefore, a need to balance conservation goals against potential damage to biogeochemical structure and function.     

Estimating long-term population exposure to ozone in urban areas of Europe

Tropospheric ozone concentrations regarded as harmful for human health are frequently encountered in Central Europe in summertime. Although ozone formation generally results from precursors transported over long distances, in urban areas local effects, such as reactions due to nearby emission sources, play a major role in determining ozone concentrations. Europe-wide mapping and modeling of population exposure to high ozone concentrations is subject to many uncertainties, because small-scale phenomena in urban areas can significantly change ozone levels from those of the surroundings. Currently the integrated assessment modeling of European ozone control strategies is done utilizing the results of large-scale models intended for estimating the rural background ozone levels. This paper presents an initial study on how much local nitrogen oxide (NOx) concentrations can explain variations between large-scale ozone model results and urban ozone measurements, on one hand, and between urban and nearby rural measurements, on the other. The impact of urban NOx concentrations on ozone levels was derived from chemical equations describing the ozone balance. The study investigated the applicability of the method for improving the accuracy of modeled population exposure, which is needed for efficient control strategy development. The method was tested with NOx and ozone measurements from both urban and rural areas in Switzerland and with the ozone predictions of the large-scale photochemical model currently used in designing Europe-wide control strategies for ground-level ozone. The results suggest that urban NOx levels are a significant explanatory factor in differences between urban and nearby rural ozone concentrations and that the phenomenon could be satisfactorily represented with this kind of method. Further research efforts should comprise testing of the method in more locations and analyzing the performance of more widely applicable ways of deriving the initial parameters.     

Environmental Modeling and Methods for Estimation of the Global Health Impacts of Air Pollution

Air pollution is increasingly recognized as a significant contributor to global health outcomes. A methodological framework for evaluating the global health-related outcomes of outdoor and indoor (household) air pollution is presented and validated for the year 2005. Ambient concentrations of PM2.5 are estimated with a combination of energy and atmospheric models, with detailed representation of urban and rural spatial exposures. Populations dependent on solid fuels are established with household survey data. Health impacts for outdoor and household air pollution are independently calculated using the fractions of disease that can be attributed to ambient air pollution exposure and solid fuel use. Estimated ambient pollution concentrations indicate that more than 80% of the population exceeds the WHO Air Quality Guidelines in 2005. In addition, 3.26?billion people were found to use solid fuel for cooking in three regions of Sub Saharan Africa, South Asia and Pacific Asia in 2005. Outdoor air pollution results in 2.7?million deaths or 23?million disability adjusted life years (DALYs) while household air pollution from solid fuel use and related indoor smoke results in 2.1?million deaths or 41.6?million DALYs. The higher morbidity from household air pollution can be attributed to children below the age of 5 in Sub Saharan Africa and South Asia. The burden of disease from air pollution is found to be significant, thus indicating the importance of policy interventions.