Stability of Climate Coalitions in a Cartel Formation Game

We empirically test stability of climate change coalitions with the STAbility of Coalitions model (STACO). The model comprises twelve world regions and captures important dynamic aspects of the climate change problem. We apply the stability concept of internal and external stability to a cartel formation game. It is shown that only if benefits from global abatement are sufficiently high, stable coalitions emerge, though they only marginally improve upon the Nash equilibrium. We explain this phenomenon by analyzing the individual incentive structure of all regions and relate our results to the predictions of theory.International environmental agreements, Kyoto-Protocol, Cartel formation game, Non-cooperative game theory

Pollution abatement in the Netherlands: a dynamic applied general equilibrium assessment

This paper deals with an assessment of the economic costs of environmental policies in the Netherlands, using a dynamic Applied General Equilibrium model with bottom-up information on abatement techniques. Empirical abatement cost curves are used to determine substitution possibilities between pollution and abatement and the characteristics of abatement goods. The results show that an absolute decoupling of economy and environment is possible. Smog formation is the most costly environmental theme, due to the absence of technical abatement options. For all environmental themes, the least-cost way to reduce emissions is via a combination of technical abatement measures and substantial economic restructuring.Applied General Equilibrium, pollution abatement, dynamics, environmental policy, Netherlands

Pollution Abatement in the Netherlands: A Dynamic Applied General Equilibrium Assessment

This paper deals with an assessment of the economic costs of environmental policies in the Netherlands, using a dynamic Applied General Equilibrium model with bottom-up information on abatement techniques. Empirical abatement cost curves are used to determine substitution possibilities between pollution and abatement and the characteristics of abatement goods. The results show that an absolute decoupling of economy and environment is possible. Smog formation is the most costly environmental theme, due to the absence of technical abatement options. For all environmental themes, the least-cost way to reduce emissions is via a combination of technical abatement measures and substantial economic restructuring.Applied general equilibrium, Pollution abatement, Dynamics, Environmental policy, Netherlands

Designing a Decision Support System for Marine Reserves Management: An Economic Analysis for the Dutch North Sea

In this paper we discuss how a Decision Support System (DSS) for managing the marine environment can be set up. We use the Driving force-Pressure-State-Impact-Respond (DPSIR) framework to analyze which are the major driving forces impacting upon the marine environment in the North Sea. Moreover, a number of potential responses are identified. Furthermore, a preliminary and simplified optimization model has been set up and can be used in a DSS to decide on the best location of marine reserves for the protection of species. The model is based on a bio-economic metapopulation model that can be used to decide which parts of the sea should be opened for fisheries and which should be protected as marine reserve. It accounts for the dispersal of fish and considers both the economic returns from fisheries and the ecological value of marine biodiversity. A number of suggestions are given on how to extend and improve the DSS.Decision Support System, Marine Biodiversity Conservation, DPSIR Framework, Bioeconomic Modeling, North Sea

The Effect of HIV/AIDS Driven Labor Organization on Agrobiodiversity: an Empirical Study in Ethiopia

Improved micronutrient intake contributes to delaying the progression of HIV into AIDS and to reducing HIV infection rates. Higher agrobiodiversity in the homegarden contributes to improving the nutritional status of farm households. Farm households with HIV/AIDS affected members observe a decrease in labor supply and productivity causing them to reallocate labor. The reallocation of labor may result in change in agrobiodiversity. Sharecropping is often used to alleviate labor shortage in agricultural production. The purpose of this paper is to analyze the implications of HIV/AIDS on agrobiodiversity through sharecropping arrangements. The study is based on a survey among 205 farm households in the Jimma zone of South Western Ethiopia. Results show that HIV/AIDS driven increase in sharecropping has a positive effect on perennial and overall agrobiodiversity in the homegarden. This offers additional intervention options to mitigate the impacts of HIV/AIDS among farm households.agrobiodiversity, Ethiopia, HIV/AIDS, labor organization, sharecropping, Farm Management, Labor and Human Capital,

Economic Incentives for Entry and Exit in Gum Arabic Agroforestry System in Sudan

The gum tree (Acacia senegal) in the Sahel-Sudan zone has many environmental benign functions. An important function is to control desertification. In this paper we analyze farmers' economic incentives to preserve the existing gum trees and their incentives to create new plantations using a real options approach. Results indicate that agricultural crops provide higher economic benefits as compared to gum agroforestry system. However, on the one hand, as gum arabic is produced during the dry period and land is abundant, there are low incentives for deforestation. Instead, farmers' tend to leave the land idle and let the tree growing. On the other hand, our results suggest that an increase in the prices of gum arabic of about 330 per cent is needed to induce entry and a shift in land use system from continuous agricultural production to gum agroforestry system.gum arabic, deforestation, entry and exit, real options, Sudan, Crop Production/Industries, D4, N5, O13, Q12, Q23,

Biological control of invasive plant species: stochastic economic analysis

We analysed to what extent the stochastic effects of two biological control agents (i.e. weevils and mycoherbicides) affect the optimal choice of Californian thistle control. A stochastic, dynamic optimisation model was set up to analyse strategies that maximise the expected net present values. We analysed the cost-effective strategies to control the thistle for deterministic and stochastic cases. Results show that the stochasticity of the efficacy of weevils does not affect the optimal strategy. Compared to the deterministic case, however, mycoherbicides will be introduced at a higher level of weed density if we take the stochastic effect of mycoherbicides into account.Stochastic, Optimisation, Biological control, Californian thistle, Economics.,

DYNAMICS OF AGRICULTURAL GROUNDWATER EXTRACTION

Agricultural shallow groundwater extraction can result in desiccation of neighbouring nature reserves and degradation of groundwater quality in the Netherlands, whereas both externalities are often not considered when agricultural groundwater extraction patterns are being determined. A model is developed to study socially optimal agricultural shallow groundwater extraction patterns. It shows the importance of stock size to slow down changes in groundwater quality.Resource /Energy Economics and Policy,

Environmental Economics for Environmental Protection

Environmental economics deals with the optimal allocation of production factors and correcting market failure in protecting the environment. Market failure occurs because of externalities, common property resources, and public goods. Environmental policy instruments include direct regulation, taxes/subsidies, tradable permits, deposit systems, voluntary agreements, and persuasion

Impacts of HIV/AIDS on labour allocation and agrobiodiversity depend on the stage of the epidemic: case studies in Ethiopia

This paper examines the impact of HIV/AIDS on labour allocation, crop choice and agrobiodiversity in Jimma Zone, south-western Ethiopia. The study comprised a survey of 205 farm households and an in-depth analysis of four rural households. HIV/AIDS caused households to increase sharecropping their land and led to more crop species grown in the home garden. The results show that the impact of HIV/AIDS on labour allocation and crop diversity depends on the stage of the disease and on which family member is (or members are) affected. Also labour allocation plays an important role, because of the options of having sharecropping contracts or opportunities for off-farm labour. The role of land tenure system in expanding the labour allocation and income-generating options has implications for intervention strategies in the various phases of the disease, both for men and women.case study; crop diversity; labour organization; health