Environmental Economic Problem Research Articles

Fatayat Nahdlatul Ulama Communication Strategy in Minimizing Prostitution Kluwih Village Branch, Bandar District, Batang Regency

This study aims to describe the communication strategy of fatayat nahdlatul ulama in minimizing prostitution on the branches of Kluwih village, Bandar sub-district, Batang district. Prostitution is an uncontrolled behavior that is fatal for those who do it. The main factors behind the occurrence of prostitution are economic, environmental and broken home factors. This has become a public controversy, in addition to environmental economic problems that also affect the occurrence of prostitution so that the fatayat of Nahdlatul Ulama wants to minimize prostitution. This communication strategy is the communication strategy used, namely from Anwar Arifin's communication strategy who knows an audience who will receive a message so that the audience understands a message that is conveyed, the next step is to compose a message so that the message to be conveyed does not deviate from the theme and the last one uses a method so that the event which will run smoothly. Furthermore, Fatayat uses the Word Of Mouth strategy to attract an audience to take part in the event to be held by finding an audience to attend the event by using information from friends to friends, luring the community by participating in the event to get a facility, and then giving ideas to develop career. By using this strategy, the community is enthusiastic about participating in events that have been organized by fatayat nahdlatul ulama.

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.

Distributed optimal control models in environmental economics: a review

We review the most recent advances in distributed optimal control applied to Environmental Economics, covering in particular problems where the state dynamics are governed by partial differential equations (PDEs). This is a quite fresh application area of distributed optimal control, which has already suggested several new mathematical research lines due to the specificities of the Environmental Economics problems involved. We enhance the latter through a survey of the variety of themes and associated mathematical structures beared by this literature. We also provide a quick tour of the existing tools in the theory of distributed optimal control that have been applied so far in Environmental Economics.

Uncertainty in environmental economics: The problem of entropy and model choice

In this paper the appropriate background in mathematics and statistics is considered in developing methods to investigate the uncertainty problem associated with environmental economics. A new generalized measure of uncertainty is introduced and a number of sources of uncertainty are discussed and presented. The causes of uncertainty are recognized and an examination is made of how they affect the adopted policies and how important their management is in any decision-making process, either under the introduced generalized normal distribution or the model choice. We show that mathematical models formulate the problem and statistical models offer possible solutions, restricting the underlying uncertainty, given the model and the error assumptions are correct. The mathematical approach can be adopted using environmental economics problems by paying attention to model choice uncertainty. As uncertainty is always present, we discuss both the model choice uncertainty and the generalized normal distribution uncertainty, through new entropy measures.

Higher-Moment Asset Pricing and Environmental Economics

This essay presents higher-moment asset pricing, a generalized approach to finance that combines a mathematically informed understanding of economic fundamentals with psychologically and biologically inspired behavioral insights. It ultimately seeks to apply higher-moment asset pricing to a wide range of valuation and decisionmaking problems in environmental economics.

Dynamics versus optimization in non-convex environmental economics problems with a single welfare function

Economics has a well-defined notion of equilibrium. Unlike mechanics or thermodynamics, economics does not include explicit theories of dynamics describing how equilibria are reached or whether they are stable. However, even simple economics problems such as maximization of a welfare function might sometimes be interpreted as dynamics problems. Here we consider when dynamics is relevant to welfare optimization problems involving a single decision-maker, for example, a social decision-maker maximizing a social welfare function. We suggest that dynamics occurs in case a welfare maximum can only be known through a sequence of local computations. These local computations give rise to a dynamical system, and the welfare optimum is also equilibrium. On the contrary, if the welfare function is known, then dynamics is irrelevant and the maximum can be chosen directly. The importance of choosing the right metaphor for an economics problem is discussed.

Forest Based Industry in Churachandpur District: From the Entrepreneurial Perspective

Churachandpur district is one of the largest and most fertile hill districts of the state. The district has distinctive characteristics of forest based industries. The entrepreneurship gesture of capital market, accessibility and affordability of raw materials are the unique and emerging vision of industrial development. The district require fast track speeding up of industrial infrastructure and special aid to coordinate the unanimity of economic environmental problem and marketing instability overwhelmed by the ban and blockade culture in the state. The sustainability with the forest based resources (NTFP- Non-Timber Forest Products) by the rural mass was guaranteed to achieve the most important effort on alleviation of poverty. This study cover only Churachandpur district, the district entrepreneurs were stratified into three sample areas i.e., new market, Tuiboung market and Damkam market respectively. There are altogether 60 numbers of respondents, 20 each questionnaire were collected from the sample area and accordingly the research methodology was constructed with a deliberated design. With the help of purposive random sampling, the required numbers of primary data and secondary data were collected and further analysed with the help of SPSS software calculating correlation and regression, keeping income from forest based industries as dependent variable and monthly expenses on education, medical and fooding and clothing as independent variables. The result from the study shows the beauty of the local entrepreneurs’ sustainability on forest based industry.

Multiobjective optimization using Mesh Adaptive Direct Search for power dispatch problem of microgrid

This paper presents a generalized formulation for determining the optimal operating strategy and cost optimization scheme and reduction of emissions of a MicroGrid (MG). Multiobjective (MO) optimization is applied to the environmental economic problem of the MG. The proposed problem is formulated as a nonlinear constrained MO optimization problem. The proposed problem takes into consideration the operation and maintenance costs as well as the emission reduction of NOx, SO2, and CO2. The MG considered in this paper consists of a wind turbine, a micro turbine, a diesel generator, a photovoltaic array, a fuel cell, and a battery storage. The Multiobjective Mesh Adaptive Direct Search (MOMADS) is employed to minimize the cost function of the system while constraining it to meet the costumer demand and safety of the system. A comparison is made with Multiobjective Sequential Quadratic Programming (MOSQP). The results demonstrate the efficiency of the proposed approach to satisfy the load and to reduce the cost and the emissions.

Solving optimal timing problems in environmental economics

Two papers of Pindyck (2000, 2002) that modeled the control of stock pollutants as optimal stopping problems contained closed form solutions that are incorrect. This paper discusses a subtle error in the derivation and demonstrates how solutions to these and related problems can be obtained numerically. The numerical solutions are contrasted with the ones contained in Pindyck's original papers.

Multiobjective optimization using modified game theory for online management of microgrid

This paper presents a generalized formulation for determining the optimal operating strategy and cost optimization scheme as well as reducing the emissions of a microgrid (MG). Multiobjective (MO) optimization based on modified game theory is applied to the environmental economic problem of the MG. The proposed problem is formulated as a nonlinear constrained MO optimization problem. The proposed problem considers the operation and maintenance costs as well as the emissions reduction of NOx, SO2, and CO2. The MG considered in this paper consists of a wind turbine, a micro turbine, a diesel generator, a photovoltaic array, a fuel cell, and a battery storage. The MO formulation is employed to minimize the cost function of the system while constraining it to meet the customer demand and safety of the system. Three typical scenarios of MG operation are investigated. A comparison is made with Multiobjective Sequential Quadratic Programming (MOSQP), Multiobjective Genetic Algorithms (MOGA) and Multiobjective Mesh Adaptive Direct Search (MOMADS). The results demonstrate the efficiency of the proposed approach to satisfy the load and to reduce the cost and the emissions. Copyright © 2010 John Wiley & Sons, Ltd.

Induced effects and technological innovation with strategic environmental policy

This paper investigates an environmental policy designed to reduce the emission of pollutants under uncertainty, where the agents’ problem is formulated as an optimal stopping problem. We first analyze the single-agent’s case according to Pindyck [Pindyck, R.S., 2002. Optimal timing problems in environmental economics. Journal of Economic Dynamics and Control 26, 1677–1697]. We then extend the model to the case in which there are two competing agents. Therefore, we consider the external economic effects that are peculiar to an agent’s environmental policy decision. Finally, we consider the effect of technological innovation. The results of the analysis suggest that if there are two competing agents, they implement environmental policy simultaneously. Furthermore, the threshold for implementing environmental policy is higher when there are two agents, and how long these two agents take to implement environmental policy depends on the magnitude of the external economic effect. Furthermore, when we consider the effect of technological innovation, we show that the incentive to be the leader occurs if an additional condition is satisfied.

Is the discount rate relevant in explaining the Environmental Kuznets Curve?

In this paper we use Pindyck's model [Pindyck, R. S. (2002). Optimal timing problems in environmental economics. Journal of Economic Dynamics and Control, 26, 1677–1697] to show that the discount rate may play an important role in accounting for the income–pollution pattern observed in the real world. Low levels of income involve high values of discount rate, that are obstacles to the adoption of a pollution abatement policy. Only when the discount rate falls, as a consequence of growth, will it be possible to implement measures for emissions reduction. Thus we are able to derive an inverse U-shaped income–pollution pattern, making use of an argument that has not yet been fully considered in the economic debate on this issue.

Applying real options in investment decisions relating to environmental pollution

This study focuses on how to assess the optimal environmental investment decisions under economic and ecological uncertainty, and establishes the continuous time model using the real option approach to optimize environmental pollution policy. Unlike traditional cost benefit analysis, this work extends the model of [Pindyck, R.S., 2002. Optimal timing problems in environmental economics. Journal of Economic Dynamics and Control 26(9–10), 1677–1697], and attempts to identify the storage threshold of pollution stocks and the optimal timing for implementing environmental pollution decisions.

Optimal timing problems in environmental economics

Because of the uncertainties and irreversibilities that are often inherent in environmental degradation, its prevention, and its economic consequences, environmental policy design can involve important problems of timing. I use a simple two-period model to illustrate these optimal timing problems and their implications for environmental policy. I then lay out and solve a continuous-time model of policy adoption in which the policy itself entails sunk costs, and environmental damage is irreversible. The model generalizes earlier work in that it includes two stochastic state variables; one captures uncertainty over environmental change, and the other captures uncertainty over the social costs of environmental damage. Solutions of the model are used to show the implications of these two types of uncertainty for the timing of policy adoption.

Evolutionary Economic Theories of Sustainable Development

Sustainable development has become the dominant concept in the study of interactions between the economy and the biophysical environment, as well as a generally accepted goal of environmental policy. So far, economists have predominantly applied standard or neo‐classical theory to environmental economic problems. In this article it will be argued that to fully understand a transformation of the economic system towards sustainability, standard environmental economics needs to be complemented by an evolutionary approach, that focuses the attention on irreversible, path‐dependent change and long‐run mutual selection of environmental and economic processes and systems. The article provides an overview of the main existing evolutionary contributions to environmental economics. Furthermore, a number of research directions of an evolutionary approach in environmental economics are discussed. It is suggested that such an approach should go beyond evolutionary theories of technical change, which dominate evolutionary economics so far, by including co‐evolution of economy and environment, sustainable consumption, endogenous preference change, and climate change modeling.

Determination of the optimal externality: Efficiency versus equity

The environmental economic problem of determining the optimal level of externality is analysed in this paper within a non-traditional framework. Thus, this classic problem is formulated as a bi-criteria model defined in the private benefits–external costs space. This change of scope, together with some results in multicriteria analysis, lead to new interpretations and non-conventional predictions with respect to the conclusions derived from the Pigovian and Coasian traditions.

Multicriteria decision analysis and environmental economics: An approximation

A multicriteria approach to address basic problems in environmental economics is proposed in this paper. The methodology is underpinned by the wellknown multicriteria method called Compromise Programming together with some recent results relating the compromise sets with the traditional optimisation of the utility functions. To illustrate the proposed methodology the following two cases are suggested: (1) The reconciliation between economic, environmental as well as recreational objectives inherent to the management of an environmental asset such as forestry system, and (2) Its application to the appraisal of environmental improvements or damages when nonmonetary objectives are involved.

Econometric health production functions: Relative bias from omitted variables and measurement error

E. E. Learner ( Amer. Econom. Rev. 75, 308–313, 1985; Econometrica 50, 725–736, 1982) and M. McAleer, A. R. Pagan, and P. A. Volker, ( Amer. Econom. Rev. 75, 293–307, 1985) have shown how to assess omitted variable bias by computing extreme bounds of coefficient estimates. Far less attention has been focused on the potential bias from inclusion of variables that are mismeasured. S. Garber and S. Klepper ( Econometrica 48, 1541–1546, 1980) derive the bias of the OLS estimator for correctly measured variables due to a single mismeasured variable. The evaluation of this bias is straightforward. However, a more reasonable presumption in many environmental economics problems is that most explanatory variables are mismeasured. In this case, S. Klepper and E. E. Learner ( Econometrica 52, 163–183, 1984) show that measurement error bias is now a complex function of the sample covariances of all variables and the covariances of all measurement errors. Biases are harder to assess and may be greater than measured previously. Using the Bayesian diagnostics of Klepper and Learner, we find that bias due to omitted variables appears to be minimal for the OLS coefficient estimator of a frequently used work-days lost data set. However, this estimator is much more susceptible to bias from measurement error than indicated by the simple Garber-Mepper formula. Even small degrees of measurement error are troublesome due to high collinearity between environmental and personal attribute variables, and this problem likely plagues many other similar studies.