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  • 1.
    Aronsson, Thomas
    et al.
    Umeå University, Faculty of Social Sciences, Department of Economics.
    Blomquist, Sören
    Department of Economics, Uppsala University.
    On environmental taxation under uncertain environmental damage2003In: Environmental and Resource Economics, ISSN 0924-6460, E-ISSN 1573-1502, Vol. 24, no 2, 183-196 p.Article in journal (Refereed)
    Abstract [en]

    This paper addresses optimal taxation, when therelationship between the consumption of a`dirty' good and the resulting environmentaldamage is uncertain and treated as a randomvariable by policy makers. The main purpose isto analyze how increased uncertainty, measuredas a mean preserving increase in the spread ofthis random variable, affects the optimalcommodity tax on the dirty consumption good. Incase the only task of government is to correctthe environmental externality, and if thepreferences are characterized by nondecreasingabsolute risk aversion, we find that thecommodity tax on the dirty consumption goodincreases in response to additionaluncertainty. If, on the other hand, thegovernment provides a public good and uses alump-sum tax in addition to the commodity tax,it is possible that the commodity tax decreasesas a response to additional uncertainty, evenif the preferences are characterized bynondecreasing absolute risk aversion. A similarresult emerges, although for different reasons,if the lump-sum tax is replaced by a laborincome tax.

  • 2.
    B. Krishnamurthy, Chandra Kiran
    Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE). Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics. The Beijer Institute of Ecological Economics, The Royal Swedish Academy of Sciences.
    Optimal management of groundwater under uncertainty: a unified approach2017In: Environmental and Resource Economics, ISSN 0924-6460, E-ISSN 1573-1502, Vol. 67, no 2, 351-377 p.Article in journal (Refereed)
    Abstract [en]

    Discrete-time stochastic models of management of groundwater resources have been extensively used for understanding a number of issues in groundwater management. Most models used suffer from two drawbacks: relatively simplistic treatment of the cost of water extraction, and a lack of important structural results (such as monotonicity of extraction in stock and concavity of the value function), even in simple models. Lack of structural properties impede both practical policy simulation and clarity of understanding of the resulting models and the underlying economics. This paper provides a unifying framework for these models in two directions; first, the usual cost function is extended to encompass cases where marginal cost of pumping depends on the stock and second, the analysis dispenses with assumptions of concavity of the objective function and compactness of the state space, using instead lattice-theoretic methods. With these modifications, a comprehensive investigation of which structural properties can be proved in each of the resulting cases is carried out. It is shown that for some of the richer models more structural properties may be proved than for the simpler model used in the literature. This paper also introduces to the resource economics literature an important method of proving convergence to a stationary distribution which does not require monotonicity in stock of resource. This method is of interest in a variety of renewable resource model settings.

  • 3.
    B. Krishnamurthy, Chandra Kiran
    et al.
    Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE). Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE). The Beijer Institute of Ecological Economics, Royal Swedish Academy of Sciences, Stockholm, Sweden.
    Kriström, Bengt
    Determinants of the Price-Premium for Green Energy: Evidence from an OECD Cross-Section2016In: Environmental and Resource Economics, ISSN 0924-6460, E-ISSN 1573-1502, Vol. 64, no 2, 173-204 p.Article in journal (Refereed)
    Abstract [en]

    Using data from a survey of households in 11 OECD countries, this paper investigates the determinants of preferences for a completely green residential electricity system. Three important questions are addressed: (i) how much are households willing to pay to use only renewable energy? (ii) does willingness-to-pay (WTP) vary significantly across household groups and countries? and (iii) what drives the decision to enter the (hypothetical) market for green energy and, given entry, what drives the level of WTP? The analysis here differs from previous studies on green energy in two ways: first, data and analyses are comparable across countries and second, a comprehensive attempt is made to understand 0 WTP, and to accommodate-using a censored quantile regression (CQR) framework-unobserved heterogeneity. The survey data indicate a low WTP, at 11-12 % of current electric bill. This study also addresses a key question: how important is income for understanding WTP, relative to more "attitudinal" determinants? The effect of income overall appears ambiguous, with Tobit-like models indicating that income is not significant while the CQR indicates that income exerts a significant effect near the center of the distribution of WTP. Across all frameworks used, a key determinant of WTP appears to be environmental attitudes, particularly membership in an environmental organization.

  • 4.
    Backlund, Kenneth
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.
    On the Role of Green Taxes in Social Accounting2003In: Environmental and Resource Economics, ISSN 0924-6460, E-ISSN 1573-1502, ISSN ISSN 0924-6460, no 25, 33-50 p.Article in journal (Refereed)
  • 5.
    Backlund, Kenneth
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.
    On the Role of Green Taxes in Social Accounting2003In: Environmental and Resource Economics, ISSN 0924-6460, E-ISSN 1573-1502, ISSN 0924-6460, Vol. 25, 33-50 p.Article in journal (Refereed)
  • 6. Boman, Mattias
    et al.
    Mattsson, Leif
    Ericsson, Göran
    Kriström, Bengt
    Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE). Swedish Univ Agr Sci SLU, CERE, S-90183 Umea, Sweden.
    Moose Hunting Values in Sweden Now and Two Decades Ago: The Swedish Hunters Revisited2011In: Environmental and Resource Economics, ISSN 0924-6460, E-ISSN 1573-1502, Vol. 50, no 4, 515-530 p.Article in journal (Refereed)
    Abstract [en]

    This paper is based on two national contingent valuation studies dealing with the extent and economic values of hunting in Sweden. The first valuation study was conducted in 1987 and the second in 2006. Both the game resource and the hunter community have undergone changes in the two decades covered by the surveys. An important purpose of the latter survey was to repeat relevant parts of the former one, which created a rare opportunity to compare valuations covering a very long time span. Moose hunting value and its determinants were compared between the two studies, showing that significant changes have taken place. Our analysis suggests caution in using results from old contingent valuation studies for e.g. benefits transfer exercises.

  • 7.
    Bostedt, Göran
    Department of Forest Economics, Swedish University of Agricultural Sciences, Umeå, Sweden .
    Threatened species as public goods and public bads: An application to wild predators in Sweden1999In: Environmental and Resource Economics, ISSN 0924-6460, E-ISSN 1573-1502, Vol. 13, no 1, 59-73 p.Article in journal (Refereed)
    Abstract [en]

    This paper discusses Pareto efficient allocations of an environmental commodity, which is both a public good and a public bad, with an application to the Scandinavian problem of conserving wild predators that are killing semi-domesticated reindeer. The paper begins by briefly outlining this conflict. This is followed by a theoretical analysis employing a diagrammatic tool called the Kolm triangle, which is an analogue of an Edgeworth box in an economy with a public good. Bargaining, Pareto improving reallocations and the shape of the Pareto set are discussed, using a simple model, where one of the agents is involountarily contributing to a public good. The paper concludes with an analysis of income-loss compensations and incentives for illegal hunting of predators.

  • 8.
    Bostedt, Göran
    et al.
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.
    Boman, Mattias
    Nonresponse in Contingent Valuation – Reducing Uncertainty in Value Inference.1996In: Environmental and Resource Economics, ISSN 0924-6460, E-ISSN 1573-1502, Vol. 8, 119-124 p.Article in journal (Refereed)
  • 9.
    Bostedt, Göran
    et al.
    Department of Forest Economics, Swedish University of Agricultural Sciences, Umeå, Sweden .
    Boman, Mattias
    Department of Forest Economics, Swedish University of Agricultural Sciences, Umeå, Sweden .
    Nonresponse in contingent valuation: Reducing uncertainty in value inference1996In: Environmental and Resource Economics, ISSN 0924-6460, E-ISSN 1573-1502, Vol. 8, no 1, 119-124 p.Article in journal (Refereed)
    Abstract [en]

    This paper focuses on problems associated with nonresponse in Contingent Valuation surveys. The results from a telephone follow-up survey show that value inference can be considerably improved by information on nonrespondents' attitudes.

  • 10.
    Bostedt, Göran
    et al.
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.
    Ericsson, Göran
    SLU.
    Kindberg, Johan
    SLU.
    Contingent Values as Implicit Contracts – Estimating Minimum Legal Willingness To Pay for Conservation of Large Carnivores in Sweden.2008In: Environmental and Resource Economics, ISSN 0924-6460, E-ISSN 1573-1502, Vol. 39, 189-198 p.Article in journal (Refereed)
  • 11.
    Bostedt, Göran
    et al.
    Department of Forest Economics, Swedish University of Agricultural Sciences, Umeå, Sweden .
    Kindberg, Jonas
    Department of Animal Ecology, Swedish University of Agricultural Sciences, Umeå, Sweden.
    Ericsson, Göran
    Department of Animal Ecology, Swedish University of Agricultural Sciences, Umeå, Sweden.
    Contingent values as implicit contracts: Estimating minimum legal willingness to pay for conservation of large carnivores in Sweden2008In: Environmental and Resource Economics, ISSN 0924-6460, E-ISSN 1573-1502, Vol. 39, no 2, 189-198 p.Article in journal (Refereed)
    Abstract [en]

    Mean willingness-to-pay (WTP) based on multiple bounded, discrete choice responses from contingent valuation surveys are normally obtained using some kind of parametric estimator. This paper instead exploits the possibility to interpret the response to the discrete-choice question as an implicit contract between the researcher and the respondent, resulting in a minimum legal WTP (MLW) estimator. Never previously used in valuation literature, it is used in this paper to estimate the WTP for the preservation of large carnivores in Sweden, based on a large scale, national survey. Results show that MLW estimates only were 12–19% of the comparable parametric estimates. In keeping with other results in contingent valuation literature, we find that the MLW estimates are positively related to the educational level, income and the fraction of urban population, while negatively related to age. Among the advantages of the MLW estimator is its transparency as well as the fact that it rests on a contractual notion of WTP.

  • 12.
    Jaraite-Kazukauske, Jurate
    et al.
    Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE). Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.
    Kazukauskas, Andrius
    Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE). Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.
    Do transaction costs influence firm trading behaviourin the European emissions trading system?2015In: Environmental and Resource Economics, ISSN 0924-6460, E-ISSN 1573-1502, Vol. 62, no 3, 583-613 p.Article in journal (Refereed)
    Abstract [en]

    This study is one of the first to empirically investigate firm trading behaviour and the importance of permit trading transaction costs, such as information costs and search costs, in the first phase of the European Union’s Emissions Trading System (EU ETS). The signs and significance of our constructed transaction costs proxy variables indicate for a presence of these costs in the initial years of the EU ETS. In particular, this paper shows that ETS firms with the smaller number of installations and with less trading experience were less likely to participate in the European emissions trading market and traded the lower quantities of permits. Furthermore, these firms chose to trade permits indirectly via third parties. This study also supports the concerns that transaction costs could be excessive for smaller participants and firms operating in the new EU member states.

  • 13.
    Joshi, Santosh R.
    et al.
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics. Centre for Environmental and Resource Economics, Umeå, Sweden.
    Vielle, Marc
    Babonneau, Frédéric
    Edwards, Neil R.
    Holden, Philip B.
    Physical and Economic Consequences of Sea-Level Rise: A Coupled GIS and CGE Analysis Under Uncertainties2016In: Environmental and Resource Economics, ISSN 0924-6460, E-ISSN 1573-1502, Vol. 65, no 4, 813-839 p.Article in journal (Refereed)
    Abstract [en]

    This paper develops a modelling framework that links GEMINI-E3, a multi-regional, multi-sectoral computable general equilibrium model with a cost-benefit analysis approach at local level using geographical information system tools to assess the physical and economic consequences of sea-level rise (SLR) in the twenty first century. A set of future scenarios is developed spanning the uncertainties related to global warming, the parameters of semi-empirical SLR estimates, and coastal developments (cropland, urban areas and population). The importance of incorporating uncertainties regarding coastal development is highlighted. The simulation results suggest that the potential development of future coastal areas is a greater source of uncertainty than the parameters of SLR itself in terms of the economic consequences of SLR. At global level, the economic impact of SLR could be significant when loss of productive land along with loss of capital and forced displacement of populations are considered. Furthermore, highly urbanised and densely populated coastal areas of South East Asia, Australia and New Zealand are likely to suffer significantly if no protective measures are taken. Hence, it is suggested that coastal areas needs to be protected to ameliorate the overall welfare cost across various regions.

  • 14.
    Parks, Peter
    et al.
    Department of Agricultural, Food, and Resource Economics, Cook College, Rutgers University, New Jersey, USA .
    Bostedt, Göran
    Department of Forest Economics, Swedish University of Agricultural Sciences, Umeå, Sweden .
    Kriström, Bengt
    Department of Forest Economics, Swedish University of Agricultural Sciences, Umeå, Sweden .
    An integrated system for management and policy analysis: Theoretical results for forestry and reindeer husbandry in Sweden2002In: Environmental and Resource Economics, ISSN 0924-6460, E-ISSN 1573-1502, Vol. 21, no 3, 203-220 p.Article in journal (Refereed)
    Abstract [en]

    This paper develops an analytical framework to simulate management- and policy-driven environmental changes in Swedish mountain environments. The framework is based on a dynamic model that includes economic connections between timber and reindeer. Economic benefits are obtained in the timber sector and the reindeer sector, by harvesting forest and reindeer stocks and selling the harvests in markets. Unharvested forest and reindeer stocks provide benefits outside of markets. Reindeer stocks provide benefits by supporting the reindeer husbandry lifestyle for members of the indigenous Saami population. The paper analyzes decisions made by a hypothetical planner of a geographical area corresponding to a Swedish sameby (Saami village). Decision outcomes are measured using the present value of net benefits measured in economic terms, and are obtained both inside and outside of economic markets. The final section gives examples of management and policy decisions that might be simulated for Swedish mountain environments, such as market-based policies to increase the economic welfare derived from private timber and reindeer harvests.

  • 15.
    Zabel, Astrid
    et al.
    Berner Fachhochshule.
    Bostedt, Göran
    CERE, Center of Environmental and Resource Economics and Department of Forest Economics, Swedish University of Agricultural Sciences, SLU, Umeå, Sweden.
    Engel, Stefanie
    ETH Zurich.
    Performance payments for groups: the case of carnivore conservation in Northern Sweden2014In: Environmental and Resource Economics, ISSN 0924-6460, E-ISSN 1573-1502, Vol. 59, no 4, 613-631 p.Article in journal (Refereed)
    Abstract [en]

    This paper presents a first empirical assessment of carnivore conservation under a performance payment scheme. In Sweden, reindeer herder villages are paid based on the number of lynx (lynx lynx) and wolverine (gulo gulo) offspring certified on their pastures. The villages decide on the internal payment distribution. It is generally assumed that benefit distribution rules are exogenous. We investigate them as an endogenous decision. The data reveals that villages’ group size has a direct negative effect on conservation outcomes and an indirect positive effect which impacts conservation outcomes through the benefit distribution rule. This result revises the collective action hypothesis on purely negative effects of group size.

  • 16.
    Zabel, Astrid
    et al.
    Institute for Environmental Decisions (IED), Environmental Policy and Economics, Swiss Federal Institute of Technology, ETH, Zurich, Switzerland.
    Pittel, Karen
    Ifo Institute for Economic Research and the University of Munich, Munich, Germany .
    Bostedt, Göran
    Department of Forest Economics and Centre for Environmental and Resource Economics, CERE, Swedish University of Agricultural Sciences, SLU, Umeå, Sweden .
    Engel, Stephanie
    Institute for Environmental Decisions (IED), Environmental Policy and Economics, Swiss Federal Institute of Technology, ETH, Zurich, Switzerland.
    Comparing conventional and new policy approaches for carnivore conservation: Theoretical results and application to tiger conservation2011In: Environmental and Resource Economics, ISSN 0924-6460, E-ISSN 1573-1502, Vol. 48, no 2, 287-301 p.Article in journal (Refereed)
    Abstract [en]

    New policy approaches to facilitate the co-existence of wildlife and livestock are needed for situations where predation incidents greatly impact households’ income and retaliatory killing threatens endangered carnivore species’ survival. In this paper, models are developed to assess how two alternative policy approaches impact a herder’s decisions on carnivore hunting and livestock protection. We find that while the well-established ex-post compensation policy induces suboptimal livestock protection it can generate sufficient incentives for the herder to refrain from hunting so that the carnivore population reaches its socially optimal level. Performance payments are proposed as alternative policy. They are found not to distort livestock protection incentives and can also help achieve a socially optimal carnivore population level. Which of the two scheme types gives rise to less cost is ambiguous. An empirical analysis of the model with data from tiger-livestock conflicts in India is presented.

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