Dynamic efficiency of enviromental policy: the case of intertemporal emissions trading

In this paper we analyze the effects of dynamic environmental policies on firms' optimal investment behavior within finite time horizons. We show that when finns are allowed to intertemporally trade their emissions, they invest in abatement in earlier periods, advancing compliance with future environmental standards. Therefore, policies such us emissions banking" enhances the dynamic efficiency of the marketable permits and derives substantial cost-savings by itself. We show the dynamics of banking policy and emissions trading when the firm faces a two step emission standard with strict requirements at the end of the programo The firm's optimaI trajectory under apure banking program is compared to command-and-control (CAC), Pigouvian taxes and emissions borrowing, aH for a finite time horizon. Banking introduces time flexibility, inducing the firm to over-comply with environmental standards in earlier periods, thus buying a delay in adjustment to future tighter policies. Finally, we analyze the dynamics of a pure emission trading program, where permits are available in a perfect competitive market, but do not last forever. Our results justify the current low trading in the U.S. Acid Rain Program (ARP) alld link firm's cost savings to the success of the banking policy

Dynamic efficiency of enviromental policy: the case of intertemporal emissions trading.

In this paper we analyze the effects of dynamic environmental policies on firms' optimal investment behavior within finite time horizons. We show that when finns are allowed to intertemporally trade their emissions, they invest in abatement in earlier periods, advancing compliance with future environmental standards. Therefore, policies such us emissions banking" enhances the dynamic efficiency of the marketable permits and derives substantial cost-savings by itself. We show the dynamics of banking policy and emissions trading when the firm faces a two step emission standard with strict requirements at the end of the programo The firm's optimaI trajectory under apure banking program is compared to command-and-control (CAC), Pigouvian taxes and emissions borrowing, aH for a finite time horizon. Banking introduces time flexibility, inducing the firm to over-comply with environmental standards in earlier periods, thus buying a delay in adjustment to future tighter policies. Finally, we analyze the dynamics of a pure emission trading program, where permits are available in a perfect competitive market, but do not last forever. Our results justify the current low trading in the U.S. Acid Rain Program (ARP) alld link firm's cost savings to the success of the banking policy.Dynamic environmental policy; Acid Rain Program; Permits; Banking;

Polution linked to consumption: a study of policy instruments in an environmental differentiated oligopoly.

In this paper we evaluate tlle effeetiveness of alternative regulatory policies on redueing aggregate pollution in an environmental1y differentiated market. Two frrms frrst ehoose their environmental quality and then their priees in a market where eonsumers differ in their valuations of the environmental features of the produets. We frrst show that environmental standards may have an adverse impaet on aggregate pollution. Moreover, we fmd that a uniform ad-valorem tax rate unambiguously increases the level of pollution in the market. When the tax rate is set in favor of the environmentally eleaner produet, aggregate pollution deereases. Finally, direet subsidies on the abatement technology always decrease pollution.Aggregate pollution; Vertical Diferentiated Oligopoly; Environmental Consciousness; Environmental Policy;

Estructura de mercado, tiempo y múltiples objetivos : ensayos sobre la teoría e implementación de la política ambiental

La tesis analiza las propiedades de los instrumentos de política ambiental de periodificacion de la política y el marco institucional en el que se integra la política ambiental. El análisis teórico desarrollado en la primera parte contiene dos contribuciones: en primer lugar, se analiza el problema relacionado con el surgimiento de los mercados "verdes" y los efectos de la política ambiental en un mercado oligopolistico; en segundo lugar, se estudian las propiedades de los instrumentos de política ambiental. La segunda parte de la tesis (redactada en ingles) evalúa de forma empírica la implementación de la política ambiental en un sector caracterizado por la existencia de múltiples objetivos en función de la toma de decisiones del regulador. En particular, la autora analiza los efectos de la actual regulación de estandares de elisión de azufre en el sector eléctrico español, caracterizado por un peso significativo del carbón nacional subvencionado. El trabajo utiliza técnicas de investigación operativa para simular los efectos de distintas políticas, y se divide en tres contribuciones: 1) descripción de la estructura y el marco institucional del sector. 2) evaluación de los costes de oportunidad implícitos en la función objetivo del regulador. 3) demostración de como la aplicación de los estándares de emisión han producido efectos negativos (perdidas de eficiencia y mayores niveles de contaminación) y se proponen políticas ambientales alternativas. La contribución principal de este trabajo es mostrar que cuando existe comportamientos estratégicos en un mercado, la política ambiental introduce dos tipos de efectos: un efecto directo sobre la decisión de inversión de la empresa y un efecto indirecto sobre la decisión de consumidores entre las empresas. Por tanto, según deduce la autora, aquellos instrumentos que introducen una mayor diferenciación relativa de producto, tenderán a generar reducciones mayores de las externalidades ambientales. El trabajo contiene bibliografía general y de cada capitulo

The Adverse Effects of Environmental Policy in Green Markets

We model green markets in which purchasers, either firms or consumers, have higher willingness-to-pay for less polluting goods. The effectiveness of pollution reduction policies is examined in a duopoly setting. We show that duopolists´ strategic behaviour may increase pollution levels. Maximum emission standards, commonly used in green markets, improve the environmental features of products. Nonetheless, overall pollution levels will rise because government regulation also affects market shares and boosts firms´ sales. Consequently, social welfare may be reduced. We also explore the effects of technological subsidies and product charges, including differentiation of charges.emission standards; subsidies; product charges; vertically differentiated duopoly

Challenges in assessing and managing multi-hazard risks: a European stakeholders perspective

The latest evidence suggests that multi-hazards and their interrelationships (e.g., triggering, compound, and consecutive hazards) are becoming more frequent across Europe, underlying a need for resilience building by moving from single-hazard-focused to multi-hazard risk assessment and management. Although significant advancements were made in our understanding of these events, mainstream practice is still focused on risks due to single hazards (e.g., flooding, earthquakes, droughts), with a limited understanding of the stakeholder needs on the ground. To overcome this limitation, this paper sets out to understand the challenges for moving towards multi-hazard risk management through the perspective of European stakeholders. Based on five workshops across different European pilots (Danube Region, Veneto Region, Scandinavia, North Sea, and Canary Islands) and an expert workshop, we identify five prime challenges: i) governance, ii) knowledge of multi-hazards and multi-risks, iii) existing approaches to disaster risk management, iv) translation of science to policy and practice, and v) lack of data. These challenges are inherently linked and cannot be tackled in isolation with path dependency posing a significant hurdle in transitioning from single- to multi-hazard risk management. Going forward, we identify promising approaches for overcoming some of the challenges, including emerging approaches for multi-hazard characterisation, a common understanding of terminology, and a comprehensive framework for guiding multi-hazard risk assessment and management. We argue for a need to think beyond natural hazards and include other threats in creating a comprehensive overview of multi-hazard risks, as well as promoting thinking of multi-hazard risk reduction in the context of larger development goals

D1.2 Handbook of multi-hazard, multi-risk definitions and concepts

This report is the first output of Work Package 1: Diagnosis of the MYRIAD-EU project: Handbook of Multi-hazard, Multi-Risk Definitions and Concepts. The aim of the task was to (i) acknowledge the differences and promote consistency in understanding across subsequent work packages in the MYRIAD-EU project, (ii) improve the accessibility of our work to a broad array of stakeholders and (iii) strengthen consensus across the hazard and risk community through a common understanding of multi-hazard, multi-risk terminology and concepts. The work encompassed a mixed-methods approach, including internal consultations and data-generating exercises; literature reviews; external stakeholder engagement; adopting and building on a rich existing body of established glossaries. 140 terms are included in the glossary, 102 related to multi-hazard, multi-risk, disaster risk management and an additional 38 due to their relevance to the project, acknowledging the need for a common understanding amongst an interdisciplinary project consortium. We also include extended definitions related to concepts particularly of relevance to this project deliverable, including ‘multi-hazard’, ‘hazard interrelationships’, ‘multi-risk’ and ‘direct and indirect loss and risk’. Underpinned by a literature review and internal consultation, we include a specific section on indicators, how these might be applied within a multi-hazard and multi-risk context, and how existing indicators could be adapted to consider multi-risk management. We emphasise that there are a number of established glossaries that the project (and risk community) should make use of to strengthen the impact of the work we do, noting in our literature review a tendency in papers and reports to define words afresh. We conclude the report with a selection of key observations, including terminology matters – for all aspects of disaster risk management, for example communication, data collection, measuring progress and reporting against Sendai Framework targets. At the same time, we discuss when is it helpful to include ‘multi-‘ as a prefix, questioning whether part of the paradigm shift needed to successfully address complex challenges facing an interconnected world is through inherently seeing vulnerability, exposure and disaster risk through the lens of multiple, interrelated hazards. We emphasise that there is likely to be an evolution of the terminology throughout the project lifetime as terms are emerge or shift as the project evolves. Finally, we propose a roadmap for developing and testing draft multi-risk indicators in MYRIAD-EU. The WP1 team would like to acknowledge all the contributions of the consortium on this task and the feedback from the External Advisory Board, in particular the chair of the board Virginia Murray, Head of Global Disaster Risk Reduction at the UK Health Security Agency, and the contribution of Jenty Kirsch-Wood, Head of Global Risk Management and Reporting at UNDRR, for her reflections on the findings of this work

Environmental Policy in a Green Market

This paper studies the impact of some frequently-used environmental policies in a duopolistic market where purchasers are willing to pay more for less polluting goods. When consumers differ in their environmental awareness, a cleaner and a dirtier variant coexist in equilibrium. The higher the average willingness-to-pay for the good, the lower are variants' unit emissions but the higher are industrial aggregate effluents. A maximum unit emission standard reduces unit emissions of both variants, but boosts firms' sales and consequently increases industrial aggregate emissions. As a result, social welfare may be reduced. We also explore the effects of technological subsidies and product charges, including differentiation of charges. Copyright Kluwer Academic Publishers 2002environmentalists, environmentally differentiated duopoly, green consumption, green market, product charges, subsidies, unit emission standards,

Polution linked to consumption: a study of policy instruments in an environmental differentiated oligopoly

In this paper we evaluate tlle effeetiveness of alternative regulatory policies on redueing aggregate pollution in an environmental1y differentiated market. Two frrms frrst ehoose their environmental quality and then their priees in a market where eonsumers differ in their valuations of the environmental features of the produets. We frrst show that environmental standards may have an adverse impaet on aggregate pollution. Moreover, we fmd that a uniform ad-valorem tax rate unambiguously increases the level of pollution in the market. When the tax rate is set in favor of the environmentally eleaner produet, aggregate pollution deereases. Finally, direet subsidies on the abatement technology always decrease pollution

Determinantes estratégicos en la formación de la lealtad del joven residente: el caso de las Islas Canarias

El objetivo de este estudio es determinar las variables estratégicas que intervienen en la formación de la lealtad del joven residente en un destino formado por islas y en un contexto de turismo doméstico. Utilizando una muestra de 678 jóvenes residentes en las Islas Canarias (España), se ha generado un modelo estructural significativo en el que se incluyen variables relacionadas con la empresa, con el producto turístico y con el residente. Los resultados demuestran que la orientación al mercado constituye el primer eslabón de una cadena de efectos que conducen a la lealtad, y que la satisfacción es la única variable que determina directamente la lealtad. Los resultados también constatan que no existen diferencias significativas en dichas percepciones por razones de sexo, isla de residencia o cantidad de viajes realizados. Este hallazgo pone de manifiesto el carácter generacional del estudio y la posibilidad de generalizar las conclusiones sobre dicho segmento a otros destinos