Interaction of European Carbon Trading and Energy Prices

This paper addresses the economic impact of the EU Emission Trading Scheme for carbon on wholesale electricity and gas prices. Specifically, we analyse the mutual relationships between electricity, gas and carbon prices in the daily spot markets in the United Kingdom. Using a structural co-integrated VAR model, we show how the prices of carbon and gas jointly influence the equilibrium price of electricity. Furthermore, we derive the dynamic pass-trough of carbon into electricity price and the response of electricity and carbon prices to shocks in the gas price.Carbon Emission Trading, Energy Markets, Structural VECM

ANALIZING WATER FRAMEWORK DIRECTIVE IMPACTS USING A MULTINOMIAL LOGIT LAND USE MODEL

We develop a two-stage, multinomial logit model of UK land use to investigate the impact of policy changes upon agriculture. The model utilizes a large panel database covering the entirety of England and Wales for 14 years between 1969 and 2004 integrated with the economic and physical environment determinants of all major agricultural land use types. Our model performs well in out-of-sample prediction of current land use and we use it to assess a proposed implementation of the Water Framework Directive via a tax on fertilizer. Results indicate that such policy change would generate substantial switching from arable to grassland systems, reducing significantly the amount of nitrate leaching into UK water-bodies.Water Framework Directive, Land use models, Discrete choice models, Multinomial logit, Agricultural and Food Policy, Land Economics/Use, Research Methods/ Statistical Methods, Resource /Energy Economics and Policy,

Spatially explicit integrated modeling and economic valuation of climate driven land use change and its indirect effects

We present an integrated model of the direct consequences of climate change on land use, and the indirect effects of induced land use change upon the natural environment. The model predicts climate-driven shifts in the profitability of alternative uses of agricultural land. Both the direct impact of climate change and the induced shift in land use patterns will cause secondary effects on the water environment, for which agriculture is the major source of diffuse pollution. We model the impact of changes in such pollution on riverine ecosystems showing that these will be spatially heterogeneous. Moreover, we consider further knock-on effects upon the recreational benefits derived from water environments, which we assess using revealed preference methods. This analysis permits a multi-layered examination of the economic consequences of climate change, assessing the sequence of impacts from climate change through farm gross margins, land use, water quality and recreation, both at the individual and catchment scale

Structurally-consistent estimation of use and nonuse values for landscape-wide environmental change

We address the problem of estimating the use and nonuse value derived from a landscape-wide programme of environmental change. Working in the random utility framework, we develop a structural model that describes both demand for recreational trips to the landscape's quality-differentiated natural areas and preferences over different landscape-wide patterns of environmental quality elicited in a choice experiment. The structural coherence of the model ensures that the parameters of the preference function can be simultaneously estimated from the combination of revealed and stated preference data. We explore the properties of the model in a Monte Carlo experiment and then apply it to a study of preferences for changes in the ecological quality of rivers in northern England. This implementation reveals plausible estimates of the use and nonuse parameters of the model and provides insights into the distance decay in those two different forms of value

The effects of weather and climate change on dengue

There is much uncertainty about the future impact of climate change on vector-borne diseases. Such uncertainty reflects the difficulties in modelling the complex interactions between disease, climatic and socioeconomic determinants. We used a comprehensive panel dataset from Mexico covering 23 years of province-specific dengue reports across nine climatic regions to estimate the impact of weather on dengue, accounting for the effects of non-climatic factors

Conservation policies informed by food system feedbacks can avoid unintended consequences

Understanding the feedbacks between food systems and conservation policies can help avoid unintended environmental consequences. Using a survey-based choice experiment and economic modelling, we quantify the potential impact of tourists’ responses to a shift in offshore fish supply after the designation of a large-scale marine protected area in Palau. We find that this conservation policy may increase offshore fish prices and tourists’ consumption of reef fish, thereby further endangering local reef ecosystems. However, if tourists are offered a sustainable offshore choice, their demand for fish could be kept at current levels, and environmental impacts from increased reef fish consumption would be avoided

Super-heavy fermion material as metallic refrigerant for adiabatic demagnetization cooling

Low-temperature refrigeration is of crucial importance in fundamental research of condensed matter physics, as the investigations of fascinating quantum phenomena, such as superconductivity, superfluidity and quantum criticality, often require refrigeration down to very low temperatures. Currently, cryogenic refrigerators with $^3$He gas are widely used for cooling below 1 Kelvin. However, usage of the gas is being increasingly difficult due to the current world-wide shortage. Therefore, it is important to consider alternative methods of refrigeration. Here, we show that a new type of refrigerant, super-heavy electron metal, YbCo$_2$Zn$_{20}$, can be used for adiabatic demagnetization refrigeration, which does not require 3He gas. A number of advantages includes much better metallic thermal conductivity compared to the conventional insulating refrigerants. We also demonstrate that the cooling performance is optimized in Yb$_{1-x}$Sc$_x$Co$_2$Zn$_{20}$ by partial Sc substitution with $x\sim$0.19. The substitution induces chemical pressure which drives the materials close to a zero-field quantum critical point. This leads to an additional enhancement of the magnetocaloric effect in low fields and low temperatures enabling final temperatures well below 100 mK. Such performance has up to now been restricted to insulators. Since nearly a century the same principle of using local magnetic moments has been applied for adiabatic demagnetization cooling. This study opens new possibilities of using itinerant magnetic moments for the cryogen-free refrigeration