Field Of Environmental Economics Research Articles

Discussion on Collaborative Teaching of Econometrics in the Field of Environmental Economics

To capitalize on the synergies between the Econometrics course and the Environmental Economics major, this paper aims to enhance students’ability to conduct empirical analysis and practical application using econometric models. It also seeks to promote collaborative teaching through case studies and model research. The primary focus is on the hot research issues within the field of environmental economics, utilizing the econometric model as a vehicle for instruction. To achieve this, the paper proposes the development of a comprehensive case library specific to environmental economics. This resource will serve to optimize the case teaching approach, incorporating the use of econometric software, and fostering interactive teaching models between educators and students. By implementing these strategies, the paper outlines a path and mode for collaborative teaching that effectively bridges the gap between conometrics and environmental economics.

Market-Based Instruments for Environmental Management: A Comparative Analysis

Market-Based Instruments (MBIs) have emerged as effective tools for environmental management, aiming to align economic decisions with environmental goals through the application of market principles and economic incentives. This paper presents a comprehensive review and comparative analysis of different MBIs, including Emissions Trading Schemes (ETS), Environmental Taxes, Subsidies and Grants, Tradable Permits, and Payments for Ecosystem Services (PES). The analysis examines the characteristics, effectiveness, and implications of each instrument, drawing insights from case studies and scholarly literature. Findings reveal that ETS and environmental taxes directly target emissions, while subsidies and grants promote environmentally friendly activities. Tradable permits enable efficient resource management, and PES programs compensate for the maintenance of ecosystem services. The choice of instrument depends on the specific context and environmental challenges, with a combination of instruments offering comprehensive environmental management strategies. The research provides valuable insights for policymakers and practitioners in designing effective environmental policies and contributes to the ongoing dialogue in the field of environmental economics.

Unveiling Bharalu River's Pollution Crisis through a Choice Experiment

In recent years, there has been a growing global concern regarding environmental degradation, pollution, and climate change, which significantly impact the development of both developing and developed nations. This growing concern has piqued the interest of economists in the field of environmental economics, which focuses on understanding how economic activities of producers and consumers affect our environment. Environmental economists aim to explain policies and initiatives that can improve the quality of life for present and future generations. Environmental issues hold particular significance for developing countries, where widespread poverty exists and there is an urgent need for accelerated economic growth. One crucial aspect of environmental degradation is declining water quality, which can have various impacts on the economy. These impacts can be observed in the health sector, where labor productivity can be affected, as well as in agriculture, where both the quality and quantity of food production may decrease. Furthermore, sectors such as tourism, real estate, aquaculture/fisheries, and others that rely on environmental quality and ecosystem services can also suffer negative consequences. The Bharalu River in Guwahati, Assam, is a prime example of an essential water resource that has undergone gradual degradation over the years, transforming into an urban municipal drain. Once a river flowing with pristine water and teeming with biodiversity, it has now experienced heavy industrialization and urbanization along its course, resulting in alarming pollution levels. This study aims to analyse the economic impact of Bharalu River's pollution from the perspective of consumers. It employs a discrete choice experiment to determine people's willingness to support the ecological restoration of the river and discusses the associated issues and challenges involved in the restoration efforts.

Blockchain Technology in the Environmental Economics: A Service for a Holistic and Integrated Life Cycle Sustainability Assessment

The application of blockchain technology in the field of environmental economics is still in its inception so it is not sufficiently used in a holistic and integrated life cycle sustainability assessment (HILCSA). The capability of the blockchain to provide a verifiable and transparent record can make it a good tool in environmental economics for an agile reflection in doing business and production. The research is focused on the advantages and challenges in the inclusion of blockchain technology into a holistic life cycle assessment. Based on the existing possibilities of using blockchain technology in environmental economics and life cycle assessments (LCAs), a framework and a model for applying the blockchain in the holistic life cycle sustainability assessment are proposed. A Design Science methodology was used as a research strategy. Particular emphasis in this paper is put on risk management when integrating blockchain methodologies through environmental economics into the life cycle sustainability assessment (LCSA) in order to use all the advantages of the blockchain technology optimally.

Citizen support for agri-environmental measures motivated by environmental consciousness

Citizens are indispensable stakeholders in rural social-ecological systems and public policies that affect them. For example, the EU’s Common Agricultural Policy (CAP) promotes agri-environmental measures (AEMs) to reduce agricultural externalities and enhance supply of ecosystem services to benefit society, compensating farmers for incurred costs and income foregone with public money. However, studies on citizen support for AEMs are rather rare. This study assesses citizen preferences for specific AEMs with a discrete choice experiment in a rural area in Flanders, which stands as an example for densely populated, intensive agricultural landscapes. Hybrid choice modelling based on the multidimensional environmental consciousness framework revealed support and significant willingness to pay for all AEMs, although with substantial heterogeneity. Mechanical weeding and increasing nesting opportunities for bees and birds were particularly favored. The affective dimension of environmental consciousness, i.e., environmental attitude, only plays a limited role in shaping the observed preferences. The cognitive dimension is even less relevant for specific preferences. This should be considered if one aims to realize community supported policies. The study presents the applicability of hybrid choice modelling in the field of environmental economics and highlights some methodological issues.

FORMATION OF THE STRUCTURE OF PAYMENTS FOR THE USE OF THE FOREST ECOSYSTEM SERVICES

The formed structure of payments for the use of resources and functions of forest ecosystems is presented in the form of a matrix, which was the purpose of the scientific article. The practical experience of implementing ecosystem payments in the field of forest use abroad was evaluated. It is well-founded that many countries have already implemented such payments, and in particular, in Costa Rica, these financial instruments have been operating effectively for 30 years. A mechanism was developed and a description of the process of forming the matrix of ecosystem payments and the algorithm of its creation was carried out. The structure of payments for the use of resources and functions of forest ecosystems has been developed in the form of a matrix, which is the most significant result and scientific novelty of this research. The "Matrix of payments for the use of resources and functions of forest ecosystems" lists various services or functions of forest ecosystems: regulation of the water regime; stabilization of the composition of the atmosphere, waste assimilation; significant decrease in wind speed, absorption of noise by the forest; provision of recreational services by forest ecosystems and others. The matrix highlights various conditions under which payments are differentiated: depending on the type of documentation, on the scale or size of the forest area, on the level of management or type of ownership; as well as the obligation of ecosystem payments, their regularity, or voluntariness, or their combination. A structure of ecosystem payments has been developed, which includes: ecological payments for regulating the water regime, regulating the climate regime, regulating the intensity of snowmelt and the water level in rivers; for stabilization of the composition of the atmosphere, assimilation of waste, improvement of the environment with the help of the release of phytoncides for bioremediation by plants; for a significant decrease in wind speed, for keeping under the tent the crowns of fauna and flora, absorbing noise by the forest; for the provision of recreational services by forest ecosystems. Ecosystem payments for compensation of economic losses caused to forest ecosystems are separately allocated. This scientific work was carried out on the basis of many years of research, analysis of domestic and foreign legislative and regulatory documents, economic literature, constructive consultations of well-known scientists in the field of environmental economics, and own conclusions.

The Closer the Better? Modeling Spatial Spillover Effects of Ecological Externalities in Coastal Mangroves

As an important part of ecological externalities, the spatial spillover effect has attracted the attention of researchers in the field of environmental economics. However, the traditional view that the spillover mechanism of ecological externalities generally decreases in line with increases in distance remains to be thoroughly proven. Effective ecological management requires an understanding of the relationship between the natural environment and human communities. In this study, the concept of geographical accessibility and a two-step mobile search model are introduced in order to connect ecosystems and humans by a spatial distance. This model can fully demonstrate the external spatial spillover effect of ecology. Based on research from the Beihai Wetland Reserve, Guangxi, China, this study found that the change in the ecological externality spillover mechanism is not only affected by spatial distance but is also affected by the pro-environmental attributes of individual residents around the region. Under the same conditions, residents with a high degree of interaction with ecological protection zones can display a stronger spatial spillover effect. The conclusion of this study provides a more accurate understanding of the changes in the spillover effect of ecological externalities, which in turn can help managers to formulate more adequate ecological protection policies that are based on the specific conditions of different residents. This is crucial for the successful management of protected ecological areas that are highly linked to human communities.

MODELING WAYS OF IMPROVING GREEN ECONOMY AND ENVIRONMENTAL PROTECTION IN THE CONTEXT OF GOVERNANCE

Today, the principles of a green economy are being updated and studied not only by experts in the field of environmental economics, but also in various political circles. A large number of countries use different instruments and principles of a green economy in their development policies and strategies. However, some countries fear this transformation because they believe that the transition to a green economy model may hinder their development. Thus, the formation of a clear methodology for the “green” economy is extremely relevant today. The main purpose of the study is to form ways to improve green economy and environmental protection in the context of governance. The article discusses the prerequisites for implementation, the basic principles of Green economy into the system of public administration, and also provides a system for modelling ways to implement the principles of Green economy using the IDEF0 methodology. This methodology allows to clearly seeing the ways and means of achieving this goal.

How CO2 emissions respond to changes in government size and level of digitalization? Evidence from the BRICS countries.

The role of government size and digitization in the process of environmental quality is a matter of considerable debate in the field of environmental economics. BRICS economies have suffered from environmental pollution. This paper scrutinizes that how CO2 emissions respond to government size and digitization in BRICS economies. Empirical estimates of the ARDL approach show that government size has a positive impact on CO2 in Brazil, India, and China, while negative impact on CO2 in Russia in the long run. The long-run estimates reveal a negative and significant effect of digitization on CO2 in Brazil, India, and China. Education and e-learning activities have a favorable and crucial role played in environmental quality in Brazil, India, and China. Based on these findings, BRICS authorities should improve the efficiency of government expenditures and invest more in digitization to improve the quality of the environment.

The Relationship between CO2 Emissions, Industry, Services and Gross Fixed Capital Formation in the Balkan Countries

The examination of the economy-environment nexus is one of the focal issues in the field of environmental economics. This study examines the causal relationships between carbon dioxide (CO2) emissions, industry, services, and gross fixed capital formation for a panel of Balkan countries over the period 1996-2017. A three-step methodological approach is used, including panel unit root tests, panel cointegration tests, and panel causality tests. The results suggest a strong cointegration between the variables, meaning that all variables have a long-run relationship with CO2 emissions. The results of the panel causality show that there is a short-run bidirectional panel causality running between industry and services, and gross fixed capital formation and services. Moreover, there is a unidirectional causality running from industry and gross fixed capital formation to CO2 emissions, and from industry to gross fixed capital formation. The results of the long-run causal relationships show that estimated coefficients of the error correction terms (ECT) in the case of CO2 emissions, industry and gross fixed capital formation are statistically significant, indicating that these three variables are an important part in the adjustment process as the model diverges from the long-run equilibrium. Balkan countries need to further invest in the modernisation of their technological process, as well as to act following the global policy incentives. Environmental taxes, carbon capture and storage, taking part in emission trading schemes and orientation towards renewable energy sources, should further strengthen Balkan countries in achieving environmentally sound economic growth.

Model Uncertainty in Climate Change Economics: A Review and Proposed Framework for Future Research

We review recent models of choices under uncertainty that have been proposed in the economic literature. In particular, we show how different concepts and methods of economic decision theory can be directly useful for problems in environmental economics. The framework we propose is general and can be applied in many different fields of environmental economics. To illustrate, we provide a simple application in the context of an optimal mitigation policy under climate change.

A new approach to environmental sustainability: Assessing the impact of monetary policy on CO2 emissions in Asian economies

AbstractThis paper offers a unique perspective in the field of environmental economics and research by linking CO2 emissions (CO2e) and monetary policies. Through a newly‐developed predictive model, the study estimated the impact of monetary policies on CO2e along with control variables, including income, remittances, urbanization, fossil fuels, and human capital in selected Asian economies for the period 1990–2014. Data were analyzed using the Pedroni and Kao co‐integration tests, panel fully‐modified (PFM‐LS), and panel dynamic least squares (PD‐LS) techniques for data analysis. Some of the main findings are as follows. First, the results showed a significant long‐term positive relationship between expansionary monetary policy and CO2e. Second, the contractionary monetary policy serves an effective measure to mitigate CO2e. Third, improvements in human capital have a positive impact on reducing CO2e. Fourth, remittances and fossil fuels are also prime determinants of CO2e. Based on the present findings, the paper proposes important implications and a predictive tool for policymakers to design effective policies and strategies for reducing CO2e.

Application of a vermicomposter containing biostimulant for pine tapping

The issues of biotechnological development of economics have become rather topical in recent years. Scientific papers in the field of environmental economics, namely in the field of the forest sector, are of particular interest. The main component of the forest industry bioeconomics development is the increase in the volume of forest resources management. Rubber tapping (tapping) is the main form of natural resource management of pine plantations. During the analysis of the resources, it was found that the development of an alternative biological stimulant of animal origin for tapping is needed to be developed for its further application, and its efficiency of the maximum pine resin yield should be assessed. A 1% aqueous extract of the vermicomposter of Black Soldier Fly (Hermetia illucens L.) was used as the main active component of the experimental biostimulant. At the test area, where the studies were conducted, trees involved in tapping procedure included ones, on which the stimulant was tested, and those trees, where ordinary tapping was carried out without the use of the stimulant; the latter ones were considered to be a control group. In the course of studies, it was found that the biostimulant based on the vermicomposter of Black Soldier Fly led to the excess of the resin yield per centimetre of face in comparison with the control group. Also, no negative effect of the biostimulant on the pine forest condition was revealed.

Can reducing carbon emissions improve economic performance – evidence from China

Abstract As the problem of carbon emissions is becoming increasingly more serious around the world, how to balance carbon emissions reduction and economic growth has become an important issue in the field of environmental economics. China is the world's largest carbon dioxide emitter, and China's Low-Carbon Pilot (CLCP) policy has significantly reduced carbon dioxide emissions and achieved expected benefits. However, is environmental quality improving at the expense of economic growth? This article selects macro panel data of 286 Chinese prefecturelevel cities and micro data of Chinese industrial enterprises from 2001 to 2013, takes the CLCP policy implementation by five provinces and eight cities as a quasi-natural experiment, uses difference-in-differences (DID) method to investigate the causal effect of CLCP policy on regional economic growth and enterprise behavior. The results are as follows. First, the CLCP policy significantly promotes regional economic growth. Moreover, as the implementation time of the policy continues, environmental regulation has a greater effect of promoting economic growth. Second, although the CLCP policy significantly increases various production costs, it also promotes the growth of enterprises' output and benefits. Third, under the pressure of enterprise cost increase caused by environmental regulation, enterprises choose the positive way of strengthening internal management, improving efficiency and increasing innovation instead of choosing the negative way of trans-regional transfer, and finally achieve an improvement in output and benefits.

Epistemological Implications of the Tragedy of the Commons

This paper defines and examines the Garett Hardin’s concept of the Tragedy of the Commons. First, an introductory to the concept is presented along with an extensive critique on Hardin’s 1968 impactful publication. Second, although the tragedy of the commons belies in the field of environmental economics, an extensive research is conducted on how the concept has naturally extended to other cornerstones such as Philosophy, Ethics & Morality, and human behavior. The objective of this paper is to not see whether the concept is dubbed correct or erroneous, but rather urge readers to take a collective stand regardless of the universal validity of the concept and shed some serious insight on the hazards of climate change and pursuit of self-interest.

Bruce Yandle and the Art of Economic Communication

Bruce Yandle is one of the most influential economists of his generation, especially in the fields of environmental economics and public choice economics. But Yandle is also one of the most gifted communicators of economics and economic principles of his generation. This chapter, written for a book celebrating Yandle’s career and contributions to economic thought, is inspired by Yandle’s unparalleled gift for communication. It focuses particularly on Yandle’s use of modes of reasoning and “visions” about the world to illustrate the challenges of communicating economic concepts to citizens and government officials and how recognizing those challenges can enable economists to communicate better and, in so doing, to improve the world through the design of better regulatory policies. The chapter begins by reviewing Yandle’s use of the frameworks of Thomas Sowell’s Conflict of Visions and Robert Pirsig’s Zen and the Art of Motorcycle Maintenance to explain public and governmental resistance to environmental economics and then supplements the analysis with more recent and related work by Jonathan Haidt and psychological personality-typing, focusing particularly on the Myers-Briggs Type Indicator framework. The chapter concludes with autobiographical reflections on how Yandle’s insights about economic communication and his pedagogical style have influenced my own efforts to communicate in the public arena with respect to questions of consumer financial protection which, like environmental regulation, is fraught with strong moral intuitions and contrasting visions of the world.

The Millennium Villages Project and Local Land Values: Using Hedonic Pricing Methods to Evaluate Development Projects

Summary This paper uses hedonic analysis to estimate the impact of an area-based anti-poverty project on land values in a developing country. Economic theory would suggest that benefits of area-based programs would be capitalized into land prices, as supply is relatively fixed compared to other factors of production. While revealed preference methods have been applied widely in the field of environmental economics, they have not yet been used to evaluate an international development project. We study the effects of The Millennium Villages Project (MVP) in Sauri, Kenya. Using administrative data from the Kenyan government on prices for land bought and sold within the MVP (established in 2005) and for land bought and sold in the surrounding area during 1999–2013, we estimate the project’s effect on local land prices. We find no evidence that the MVP investments led to an increase in land prices within project areas. This research represents the first work to use hedonic analysis of land values to assess an international development project.

Economic Valuation of Cultural Contents in Rural Village Using Contingent Valuation Method

본 연구는 경상남도 양산시 대석 물안뜰 농촌전통테마마을에서 실시하고 있는 마을단위의 문화자산인 ‘상여소리와 행상’을 대상으로, 모수/비모수의 두 가지 추정법에 근거한 가상가치평가법(CVM)을 활용하여 마을단위 문화자산의 경제적 가치를 측정하였다. 본 연구의 주요 결과는 첫째, 제시가격이 높을수록 ‘상여소리와 행상’ 행사가 지닌 가치에 대한 응답자의 지불의사금액이 감소하는 것으로 나타났다. 즉, ‘상여소리와 행상’의 경제적 가치를 추정하기 위한 분석 모형에서 제시가격에 대한 계수 부호가 (-)로 나타났으며, 이러한 결과는 본 연구의 가상시장 설정이 이론적으로 유효성을 견지하고 있음을 보여주고 있다는 것을 의미한다. 둘째, 로짓모형을 활용한 모수 추정법에 의한 ‘상여소리와 행상’ 행사에 대한 지불의사금액(WTP)은 방문객 1인당 1회 관람료로 6,245원으로, 비모수 추정법에 의한 평균 지불의사금액(WTP)은 5,556원으로 각각 추정되었다. 경제적 가치 추정에 있어 모수/비모수 추정법을 활용하여 균형적인 시각으로 보다 정확한 지불의사금액(WTP) 추정을 시도했다는 점에서 본 연구는 의의를 지니고 있다. 더불어, 본 연구에 의해 도출된결과는 양산 물안뜰 농촌전통테마마을의 고장 문화자산을 보존하기 위한 지방정부의 직접 지원, 보조금 결정, 그리고 입장료 결정 등 의사결정과 관련해서 유용한 정보로 활용될 수 있을 것이다.The purpose of this study was to estimate the economic value of rural cultural contents which is carrying a coffin with a bier-carriers’ song in Yangsan Mulanddeul Village(Chungcheongnam-do Rural Theme Village). For achieving the purpose, contingent valuation method(CVM) which has been known as one of the practical methods in the field of environmental economics was to used and applied a double-bounded dichotomous choice contingent valuation method(DB-DC CVM). For this research, The question is about how much has the respondents willingness-to-pay(WTP) for preserving and maintaining carrying a coffin with a bier-carriers’ song and economic value measurement scenario was designed. The survey interviews were conducted by personal interview method on November 7, 2015 with festival attendees as respondents and 148 surveys used in the analysis. To estimate willingness-to-pay(WTP), logit model and non-parametric approach is adopted. The results of this study was summarized as: firstly, the individual visitor’s WTPMean was 6,245 won while WTPMedian was 5,525 won using the logit model. secondly, and the ndividual visitor’s WTPMean was 5,556 won while WTPMedian was 3,750 won using the non-parametric approach. In addition, the implications of the results were discussed in the conclusion.

Authorship, Collaboration, Topics, and Research Gaps in Environmental and Resource Economics 1991–2015

Environmental and Resource Economics is one of the premier journals in the field of environmental economics. It was established with an aspiration to focus more on applied and policy relevant research compared to other established journals, and to establish better channels of communication and collaboration between researchers from Europe and other parts of the world. We present a text based exploratory analysis of 1630 articles published in the Journal from 1991 to 2015 that suggests the Journal has been somewhat successful in meeting both these aims. Perhaps more importantly, it shows the Journal continues to progress toward these goals. The European authors are the largest contributors to the Journal, which is in contrast to other prominent journals (such as Journal of Environmental Economics and Management and Ecological Economics). And while most of the collaboration has occurred within this geographic region (e.g., European authors collaborated with other European authors more frequently), this trend appears to be changing as the proportion of articles written by international collaborators is gradually increasing. Topic analysis reveals that almost all of the articles could be grouped under applied and/or policy relevant topics, and almost two-thirds of the articles are empirical in nature, which suggest that the journal has been able to fulfil both of its commitments. We also investigate trends in research foci over the last 25 years and what kind of research gaps can be discerned.

Solving Bilevel Multicriterion Optimization Problems With Lower Level Decision Uncertainty

Bilevel optimization problems are characterized by a hierarchical leader-follower structure, in which the leader desires to optimize her own strategy taking the response of the follower into account. These problems are referred to as Stackelberg problems in the domain of game theory, and as bilevel problems in the domain of mathematical programming. In a number of practical scenarios, a bilevel problem is solved by a leader who needs to take multiple objectives into account and simultaneously deal with the decision uncertainty involved in modeling the follower's behavior. Such problems are often encountered in strategic product design, homeland security applications, and taxation policy. However, the hierarchical nature makes the problem difficult to solve and they are commonly simplified by assuming a deterministic setup with smooth objective functions. In this paper, we focus our attention on the development of a flexible evolutionary algorithm for solving multicriterion bilevel problems with lower level (follower) decision uncertainty. The performance of the algorithm is evaluated in a comparative study on a number of test problems. In addition to the numerical experiments, we consider two real-world examples from the field of environmental economics and management to illustrate how the framework can be used to obtain optimal strategies.