factors influencing differences between survey and market based environmental value measures a unique us database combining survey and housing data is used to obtain household level stated and market based willingness to pay wtp measures to avoid living near landfills systematic differe

the carbon footprint of uk households 1990 2004 a socio economically disaggregated quasi multi regional input output model this paper presents a socio economically disaggregated framework for attributing co2 emissions to people s high level functional needs based around a quasi multi regional input output qmrio model the study in theory takes into account all co2 emissions that arise from energy used in production of goods and services to satisfy uk household demand whether the emissions occur in the uk or abroad results show that co2 emissions attributable to households were 15 above 1990 levels in 2004 and that although absolute decoupling occurred between household expenditure and co2 during the uk s switch from coal to gas in the early 1990s since then only slight relative decoupling is evident the proportion of co2 that arises outside uk borders in support of uk consumption is rising and reducing these emissions is particularly problematic in a global trading system investigation into the carbon footprint of different segments of the uk population shows wide variation the segment with the highest carbon footprint emits 64 more co2 than the segment with the lowest results show that recreation and leisure are responsible for over one quarter of co2 emissions in a typical uk household in 2004 we conclude that expanding lifestyle aspirations are significant factors in driving household co2 emissions but the study also emphasizes that attention must be paid to the infrastructures and institutions that result in considerable amounts of co2 being locked up in basic household activities through which people meet their everyday needs for subsistence protection and communication with family and friends the findings highlight the sheer scale of the challenge facing uk policy makers and suggest that policies should be targeted towards segments of society responsible for the highest carbon footprints

willingness to pay for quality improvements comparative statics and interpretation of contingent valuation results this paper extends variation function theory by examining the effects of changes in prices quality and income on willingness to pay for quality change comparative static effects are found for both on site users and nonusers of the resource these results are used to interpret contingent valuation empirical models for example the substitution and complementary relationships between trips to natural resource sites can be identified this paper also suggests tests for comparison of contingent valuation with recreation demand models and other tests of validity

averting behavior in the presence of public spillovers household control of nuisance pests this paper empirically imple ments an averting behavior model for gypsy moth control explicitly recognizing the joint pri vate and public spillover motivations for con trol the results demonstrate that averting be havior models can capture complex behavioral influences suggesting that such models can be extended beyond health related applications the model yields a reduced form parameter which cannot be identified using actual behavior data alone a method combining models of ac tual behavior and contingent behavior is piro posed as a way to directly measure the produc tion and preference effects jel q23

empirical strategies for incorporating weak complementarity into consumer demand models abstract this article appraises existing empirical strategies for incorporating weak complementarity into consumer demand models the repackaging integrating back and discontinuity approaches are evaluated in terms of their behavioral implications and potential usefulness for applied research the appraisal suggests that the repackaging approach offers the most flexibility and tractability in the multi good demand system framework but the integrating back approach holds considerable promise in the single good context a multi good empirical comparison suggests that qualitatively similar policy inference arises from different repackaging approaches

on the equilibrium properties of locational sorting models abstract important to many models of location choice is the role of local interactions or spillovers whereby the payoffs from choosing a location depend in part on the number or attributes of other individuals or firms that choose the same or nearby locations in equilibrium this paper develops the equilibrium properties of a broadly applicable and readily estimable class of sorting models that allow location decisions to depend on both fixed local attributes including unobserved attributes and local interactions describes the conditions under which equilibria exist and are unique and provides a test for uniqueness in empirical analyses of sorting equilibrium

precision of dichotomous choice contingent valuation welfare measures some simulation results the purpose of this research is to examine the roles of individuals heterogeneous economic factors and model misspecification in dichotomous choice contingent valuation welfare measurement willingness to pay for an improvement of environmental quality is studied simulation results indicate that the precision of welfare estimates increases with individuals income levels and decreases with the price of the quality related good the dependence of the consumption of the quality related good on the environmental quality also affects the reliability of welfare estimates

monte carlo benchmarks for discrete response valuation methods this paper argues that the belief that discrete contingent valuation cv questions yield substantially larger estimates of the mean and the median willingness to pay wtp for nonmarket resources in comparison to open ended cv questions is unfounded monte carlo experiments estimate the factors influencing the performance of wtp estimates based on discrete response models most of the error arises from the specification errors common to the empirical models in the literature these experiments suggest models where wtp is dominated by nonuse or passive use values are likely to have smaller errors than where large use values influence these decisions

modeling discrete choices with augmented perception hurdles through creating latent perception hurdles associated with each attribute considered in a stated conjoint experiment this article describes a model that augments the conventional approach by utilizing the importance ratings provided by respondents prior to the discrete choice stage the resulting perception hurdle logit phl model has both advantages and disadvantages compared to the conditional logit cl and mixed logit models although the proposed model may not have the best within sample fit it outperforms the other two models in predicting choices in a hold out sample in addition the proposed model is also used to reveal that depending on their own characteristics and the process of the survey respondents may employ an array of different decision strategies

shared producer and consumer responsibility theory and practice abstract over the past decade an increasing number of authors have been examining the nexus of producer versus consumer responsibility often dealing with the question of how to assign responsibility for internationally traded greenhouse gas emissions recently a similar problem has appeared in drafting the standards for the ecological footprint while the method traditionally assumes a full life cycle perspective with full consumer responsibility a large number of producers businesses and industry sectors have started to calculate their own footprints see www isa org usyd edu au adding any producer s footprint to other producers footprints or to population footprints which all already cover the full upstream supply chain of their operating inputs leads to double counting the sum of footprints of producers and consumers is larger than the total national footprint the committee in charge of the footprint standardisation process was hence faced with the decades old non additivity problem posing the following dilemma for the accounting of footprints or any other production factor if one disallows double counting but wishes to be able to account for producers and consumers then one cannot impose the requirement of full life cycle coverage the supply chains of actors have to be curtailed somehow in order to avoid double counting this work demonstrates and discusses a non arbitrary method of consistently delineating these supply chains into mutually exclusive and collectively exhaustive portions of responsibility to be shared by all actors in an economy

combining contingent valuation and travel cost data for the valuation of non market goods the travel cost method tcm has long been used to infer the economic value of nonmarket resources and public goods more recently contingent valuation cvm survey methods have gained popularity for eliciting these values here cvm survey responses are combined with tcm data on actual market behavior to estimate jointly both the parameters of the underlying utility function and its corresponding ordinary demand function this is a prototypical empirical example of a new modeling strategy variants of which should prove useful in many applications especially where reliance on a single valuation method is undesirable

estimating the demand for a new technology bt cotton and insecticide policies this article examines the potential demand for bt cotton in the southeast from information gathered in the first year of commercialization we combine revealed preference rp data on adoption of bt cotton varieties with stated preference sp data on willingness to adopt to estimate demand using a double bounded maximum likelihood procedure using estimated demand equations we simulate the costs of reducing conventional insecticide applications through subsidization of bt cotton results indicate that reducing cotton insecticide applications by 40 in the southeast would require a 21 acre subsidy with total annual program costs between 53 million and 60 million

from production based to consumption based national emission inventories abstract under the united national framework convention of climate change unfccc countries are required to submit national emission inventories nei to benchmark reductions in greenhouse gas ghg emissions depending on the definition and system boundary of the nei the mitigation options and priorities may vary the territorial system boundary used by the unfccc has been critiqued for not including international transportation and potentially causing carbon leakage to address these issues past literature has argued in favour of using consumption based nei in climate policy this article discusses several issues in moving from the standard production based nei to consumption based nei first two distinct accounting approaches for constructing consumption based nei are presented the approaches differ in the allocation of intermediate consumption of imported products second a consistent method of weighting production based and consumption based nei is discussed this is an extension of the previous literature on shared responsibility to nei third due to increased uncertainty and a wide system boundary it may be difficult to implement consumption based nei directly into climate policy several alternative options for incorporating consumption based inventories into climate policy are discussed

the individual travel cost method with consumer specific values of travel time savings the treatment of the opportunity cost of travel time in travel cost models has been an area of research interest for many decades our analysis develops a methodology to combine the travel distance and travel time data with respondent specific estimates of the value of travel time savings vtts the individual vtts are elicited with the use of discrete choice stated preference methods the travel time valuation procedure is integrated into the travel cost valuation exercise to create a two equation structural model of site valuation since the travel time equation of the structural model incorporates individual preference heterogeneity the full structure model provides a travel cost site demand model based upon individualized values of time the methodology is illustrated in a study of recreational birdwatching more specifically visits to a stork village in poland we show that the usual practice of basing respondents vtts on 1 3 of their wage rate is largely unfounded and propose alternatives including a separate component of the travel cost survey aimed at valuation of respondents vtts or as a second best asking if they wish if their journey was shorter and for those who do use full hourly wage as an indicator of their vtts

energy consumption financial development and economic growth in india new evidence from a nonlinear and asymmetric analysis this paper investigates the asymmetric relationship between energy consumption and economic growth by incorporating financial development capital and labour into a production function covering the indian economy from 1960q1 2015q4 the nonlinear autoregressive distributed lag bounds testing approach is applied to examine the asymmetric cointegration between the variables an asymmetric causality test is also employed to examine the causal association between the considered variables the results indicate cointegration between the variables in the presence of asymmetries the asymmetric causality results show that only negative shocks in energy consumption have impacts on economic growth in the same vein only negative shocks in financial development have impacts on economic growth by contrast symmetrically capital formation causes economic growth finally over the study period a neutral effect exists between the labour force and economic growth in india the implications of these results for growth policies in india are also discussed

estimating the general equilibrium benefits of large changes in spatially delineated public goods the purpose of this article is to report a new approach for measuring the general equilibrium willingness to pay for large changes in spatially delineated public goods such as air quality we estimate the parameters of a locational equilibrium model and compute equilibria for alternative scenarios characterizing the availability of public goods within a system of communities welfare measures take into consideration the adjustments of households in equilibrium to nonmarginal changes in public goods the framework is used to analyze willingness to pay for reductions in ozone concentrations in southern california between 1990 and 1995

uncertainty information and hedonic pricing the application of the hedonic pricing technique to estimating consumer values of avoiding or incurring the risk of loss from natural hazards has recently appeared in the literature e g brookshire et al 1985 macdonald murdoch and white 1987 the probabilistic nature of the hazards evaluated in these studies raise new questions regarding the interpretation of the hedonic prices estimated we present a hedonic price model that accounts for information level and uncertainty when valuing nonmarket goods a simple set of rules are derived for analyzing hedonic prices for probabilistic nonmarket goods

utility consistent discrete continuous choices in soil conservation a utility consistent model of participation and participation intensity choices for a voluntary soil conservation program is developed a modified form of roy s identity is used to derive a two equation system that links the discrete dichotomous choice participation and the continuous choice intensity to the same utility function the model corrects for selectivity bias that arises in single equation approaches an application to a filter strip program in two counties in illinois and michigan demonstrates that different factors affect responses to the program across the sample regions estimated willingness to accept payments for participation in the program suggest policy impacts are not uniform across locations

combining revealed and stated preference methods to value environmental amenities at residential locations this paper combines an established revealed preference method discrete choice he donic analysis and a relatively new stated refer ence method choice based conjoint analysis in order to estimate more accurately the aesthetic benefits generated by the presence and quality of environmental amenities associated with residen tial locations it applies the combined approach to the housing market of fairfield connecticut which contains several environmental amenities and is experiencing an improvement in the quality of its coastal wetlands due to active restoration efforts jel q26

decisiveness attitude expression and symbolic responses in contingent valuation surveys abstract despite suggestions that respondents to contingent valuation studies often follow alternate models of individual decision making few theoretical models have been developed the paper presents a theoretical model of symbolic and attitude expressive contingent valuation responses drawing on relevant contributions in psychology and political science it is argued that the highly symbolic and emotional nature of many environmental issues often activates the need for individuals to express their attitudes and values which when coupled with a perceived non decisiveness of individual questionnaire responses can result in value expressive considerations dominating some cvm responses at the expense of the desired outcome appraisal economic tradeoffs the implications for some topical issues in cvm are explored

a review of recent multi region input output models used for consumption based emission and resource accounting abstract the interest in consumption based emission and resource accounting has grown significantly many studies juxtapose consumer emissions carbon footprint and producer territorial emissions of greenhouse gases in order to demonstrate the effects of trade on the national emission budget to this end a respectable number of studies have been undertaken worldwide in order to estimate emissions embedded in international trade of numerous countries and world regions input output approaches and increasingly multi region input output mrio models are commonly chosen as they provide an appropriate methodological framework for complete carbon footprint estimates at the national and supra national level with increasing processing capabilities of computers and a wider availability of economic accounts environmental accounts and trade data such models are now being implemented on a wide scale after a brief overview of salient single region input output studies i provide an in depth review of the most recent multi region input output models used for the purpose of consumption based environmental accounting the main methodological features and important results are described for around twenty studies covering the years 2007 to 2009 this is followed by a detailed review of studies dealing with uncertainty in mrio analysis an area which has not received a lot of attention so far i conclude that further research is mainly needed in two areas a improvements in data availability and quality and b improvements in the accuracy of mrio modelling

combining revealed and stated preferences consistency tests and their interpretations this article models the recreation demand for iowa wetlands combining survey data on both actual usage patterns i e revealed preferences rps and anticipated changes to those patterns under hypothetical increases in trip costs i e stated preferences sps we formulate and test specific hypotheses concerning potential sources of bias in each approach and discuss what can be learned about the validity of the models from such tests

the response of the beijing carbon emissions allowance price bjc to macroeconomic and energy price indices in 2013 china opened pilot carbon emission trading markets in seven provinces where carbon emission allowances have now been traded for more than two years in this paper we employ a structural var model and the price of the beijing carbon emission allowance to study the dynamic relationships among the price of the carbon emission allowance economic development and the price of energy this paper s data cover the period from april 2 2014 to november 6 2015 this paper provides information that will be helpful to both investors and governmental policy makers the results show that 1 an increase of one standard deviation in the coal price leads to an initial increase of approximately 0 1 in the beijing carbon price after 2 days there is a decrease of less than 0 1 and the price gradually increases by approximately 0 1 after 30 days 2 the price of the beijing carbon emission allowance is mainly affected by its own historical price 3 the beijing carbon emission allowance price crude oil price natural gas price and economic development have positive albeit non significant correlations

detecting instability in the volatility of carbon prices this article investigates the presence of outliers in the volatility of carbon prices we compute three different measures of volatility for european union allowances based on daily data egarch model option prices implied volatility and intraday data realized volatility based on the methodology developed by zeileis et al 2003 and zeileis 2006 we detect instability in the volatility of carbon prices based on two kinds of tests retrospective tests ols recursive based cusum processes f statistics and residual sum of squares and forward looking tests by monitoring structural changes recursively or with moving estimates we show evidence of strong shifts mainly for the egarch and iv models during the time period overall we suggest that yearly compliance events and growing uncertainties in post kyoto international agreements may explain the instability in the volatility of carbon prices

estimating the private benefits of vaccination against cholera in beira mozambique a travel cost approach abstract this paper reports the results of the first study that estimates households private demand for cholera vaccines using the travel cost method we take advantage of an unusual natural experiment in january 2004 more than 41 000 residents from various locations in beira mozambique received two doses of oral cholera vaccine free of charge during the first vaccination trial to test its effectiveness in an endemic cholera zone of africa about 30 000 people participated from outside the target zone resulting in long queues and an average waiting time of about 85 min per dose we estimated travel cost models of the revealed demand for cholera vaccines among households informed of the trial using information collected in in person interviews conducted during the summer of 2005 to explore households participation in the trial we used standard and zero inflated household count models for all household members and dichotomous choice models for the head of the household our analysis shows that the quantity of vaccines obtained by households and the likelihood of participation decreased as travel cost in time and transport expenses rose our best estimates of per capita willingness to pay for the two required doses of cholera vaccine are about 0 85 usd these estimates are sensitive to the assumed value of time spent acquiring vaccines

an empirical analysis of energy cost pass through to co2 emission prices abstract we use the nonlinear autoregressive distributed lag nardl model to analyze the asymmetric and nonlinear pass through effects of changes in crude oil prices natural gas prices coal prices and electricity prices on the co 2 emission allowance prices we find that i the crude oil prices have a long run negative and asymmetric effect on the co 2 allowance prices ii the decreases in the coal prices have a stronger impact on the carbon prices in the short run than the increases iii the natural gas prices and electricity prices have a symmetric effect on the carbon prices but this effect is negative for the former and positive for the latter these findings are robust when using both monthly and daily data and when considering bivariate and multivariate models

impact of household consumption on co2 emissions danish household consumption increased by 58 over the period 1966 1992 while co2 emissions only increased by 7 using decomposition analysis we investigated the global co2 impact of danish household consumption from 1966 to 1992 our conclusion is that overall growth in private consumption but not changes in the composition of consumption is the key to understanding the increase in co2 emissions however the effect of growth in private consumption has been partly offset by substantial energy conservation in the energy supply and manufacturing sectors

improving environmental valuation estimates through consistent use of revealed and stated preference information abstract environmental valuation data from stated and revealed preference methods are integrated into a unified model of preferences for environmental quality improvement that identifies the use and nonuse components of the total value estimate this articulates clearly what parts of the total value estimate come from each type of data and permits tests of whether estimated preferences satisfy weak complementarity between the environmental good of interest and related private goods the statistical advantages of using more information for the valuation problem are exploited while retaining flexibility to identify value estimates from any individual method of analysis

how a symmetric is the response of import demand to changes in its determinants evidence from european energy imports abstract energy imports are crucial for european countries yet little is known about determinants of their import demand we update long outdated estimates of import demand elasticities using recent data for crude and derived energy products and contribute to the debate on the asymmetry of import demand by using recent developments in econometric modelling our results have important implications for the geopolitics of energy markets in europe asymmetric income seems to be the most relevant determinant of import demand economic growth and fossil fuel consumption are correlated even in the context of the european agenda towards renewables our results suggest that european economic recovery may derail the drive for lower fossil consumption and that changes in the natural gas market may further complicate this drive especially regarding russia as the primary supplier to the eurozone

the willingness to pay for green apartments the case of nanjing china faced with the challenge of developing sustainable cities the chinese government sets green construction as part of the national strategy to reduce energy consumption however the consumer market has shown limited response to such policies to upscale green building it is crucial to understand the market demands for green apartments this article employs a conjoint model to estimate the willingness to pay for green dwellings versus accessibility to metros and jobs and neighbourhood quality by different socio economic groups in nanjing china results show that the socio economic status of homebuyers determines their willingness to pay for green attributes only the rich are prepared to pay for green apartments to improve their living comfort to all the notion of health is appealing as consumers are willing to pay for an unpolluted environment and for non toxic construction materials used in buildings in good locations

determinants of participation in accelerated vehicle retirement programs one potential way to reduce hydrocarbon emission is through accelerated vehicle retirement programs however it is difficult to forecast participation rates in these programs because the number and characteristics of participants are likely to vary with the price offered to attract old cars this paper presents a theoretical model of the owner s car tenure and scrappage decision an econometric model of participation is then developed and estimated using data from a recent old vehicle scrap program in delaware participation rates at different possible offer prices are then predicted

spring cleaning rural water impacts valuation and property rights institutions the brief summarizes the spring cleaning rural water impacts valuation and property rights institutions the first two rounds of spring protection occurred in january april 2005 and august november 2005 the author measure health impacts of spring protection an investment that improves source water quality the author also estimate households valuation of spring protection and simulate the welfare impacts of alternatives to the current system of common property rights in water which limits incentives for private investment spring infrastructure investments reduce fecal contamination by 66 percent but household water quality improves less due to recontamination child diarrhea falls by one quarter travel cost based revealed preference estimates of households valuations are much smaller than both stated preference valuations and health planners valuations and are consistent with models in which the demand for health is highly income elastic the author estimate that private property norms would generate little additional investment while imposing large static costs due to above marginal cost pricing private property will function better at higher income levels or underwater scarcity and alternative institutions could yield pareto improvements

house prices during siting decision stages the case of an incinerator from rumor through operation abstract the impact of an undesirable land use on house prices is not constant over time previous proximity studies which employed only discrete changes in information such as an epa superfund site announcement ignored potentially important phases of the adjustment process this study explicitly measures how the effects of an undesirable land use evolve over the siting process and life of the disamenity some price response to rumors of a facility is indicated and the evidence that prices respond at groundbreaking before operation is strong the distance premium persists at least 7 years after the facility begins operations

primary energy and greenhouse gases embodied in australian final consumption an input output analysis input output modeling of primary energy and greenhouse gas embodiments in goods and services is a useful technique for designing greenhouse gas abatement policies the present paper describes direct and indirect primary energy and greenhouse gas requirements for a given set of australian final consumption it considers sectoral disparities in energy prices capital formation and international trade flows and it accounts for embodiments in the gross national expenditure as well as the gross domestic product primary energy and greenhouse gas intensities in terms of mj and kg co2 e are reported as well as national balances of primary energy consumption and greenhouse gas emissions

energy requirements of sydney households supporting the lifestyles of the populations of modern cities requires vast quantities of natural resources and leads to environmental stresses such as air and water pollution research into the metabolism of cities therefore aims at understanding the physical flows into within and out of cities with a view to reducing the use of resources and the environmental impacts one important physical indicator is energy use most studies on cities only consider direct or end user energy consumption since the function of cities is to serve the lives of their residents indirect energy use in cities or energy embodied in the consumption of goods and services by its residents can be regarded as being as important as direct energy use however physical models of cities are extremely complex and have difficulty in dealing with boundary issues and hence the indirect resource requirements in this paper we use input output analysis and detailed household expenditure data to yield comprehensive energy use breakdowns for the 14 statistical subdivisions of sydney multivariate regression and structural path analysis spa are used to interpret the results clear correlations can be drawn between energy use and income household size age and degree of urbanity the structural path analysis is used to demonstrate how significant differences in lifestyles between inner and outer areas of sydney leads to different energy use characteristics this final consumption based approach to analysing the energy requirements for households has important implications for measures aimed at reducing energy use which tend to only consider direct energy use d 2004 elsevier b v all rights reserved

combining revealed and stated data to examine housing decisions using discrete choice analysis abstract this paper uses stated preference and revealed preference data separately and jointly to examine individuals housing choices in particular it combines an established revealed preference approach discrete choice analysis of actual housing purchases and a relatively new stated preference approach choice based conjoint analysis of hypothetical housing purchases to provide us with a better understanding of the factors driving housing decisions these methods are appropriately combined since they reflect the same decision process households select the dwelling that provides the best combination of attributes from the feasible set of alternatives in total this paper analyzes three data sets only actual housing purchases only hypothetical housing purchases and both types of purchases combined analysis finds that actual and hypothetical housing purchases are similar decision processes with respect to some attributes yet are dissimilar with respect to other attributes nevertheless combining the two types of data improves identification of both categories of attributes journal of economic literature classification number r21

willingness to pay compensating variation and the cost of commitment hicksian welfare theory is static in nature but many decisions are made in a dynamic environment we present a dynamic model of an agent s decision to purchase or sell a good under the realistic conditions of uncertainty irreversibility and learning over time her willingness to pay wtp contains both the intrinsic value of the good as in hicksian theory plus a commitment cost associated with delaying to obtain more information the hicksian equivalence between wtp willingness to accept wta and compensating and equivalent variations no longer holds the wtp and wta divergence may arise and observed wtp values are not always appropriate for welfare analysis jel d60 d83

oil shocks and their impact on energy related stocks in china abstract this paper contributes to the current literature by adopting time varying conditional correlation and asset pricing models to discover how the dynamics of international oil prices affect energy related stock returns in china after conditioning for structural instability the results show a much stronger relation following the 2008 financial crisis we argue that this reflects the fact that investors in the chinese stock market especially for energy related stocks are more sensitive to the shocks in international crude oil market

sparkling wine choice from supermarket shelves the impact of certification of origin and production practices we report the results of a study based on revealed and stated preference data on choice of prosecco wines in retail stores close to the origin of production in northern italy emphasis is placed on ability to reconcile the utility structure of stated preference data with that underlying revealed preference data we extend the analysis to cover nonattendance of key attributes such as price and certification of origin while controlling for the large range of brand effects

perceptions versus objective measures of environmental quality in combined revealed and stated preference models of environmental valuation abstract this study examines perceptions and objective attribute measures in discrete choice models of recreation site choice behavior these forms of attribute measurement are examined in individual and combined revealed preference stated preference models our results suggest that the model based on perceptions slightly outperforms the models based on objective attribute measures however issues such as the definition of the choice set and the measurement of welfare present significant challenges when using perceptions data

asymmetric relationship between carbon emission trading market and stock market evidences from china abstract this paper has investigated the asymmetric relationship between carbon emission trading market and stock market in china by using the nonlinear auto regressive distributed lag nardl model based on our investigation on both of the overall and sector level of stock market we have obtained interesting and convincing empirical results that show there are significantly negative long run and short run asymmetric relationships between carbon emission trading market and overall stock market in china specifically we have noticed that while passing the effects from the former to the later the increasing of carbon emission trading price would make greater effects on the stock price than its decreasing also on the sector level carbon emission trading price is significantly related to some energy intense sectors and financial sector stock market furthermore we have surprisingly found out that there are no significant effects passing from stock index to carbon emission trading price in china neither on the overall level nor on the sector level of stock market

income growth and atmospheric pollution in spain an input output approach abstract the relationships between economic growth and environmental pressures are complex since the early nineties the debate on these relationships has been strongly influenced by the environmental kuznets curve hypothesis which states that during the first stage of economic development environmental pressures increase as per capita income increases but once a critical turning point has been reached these pressures diminish as income levels continue to increase however to date such a delinking between economic growth and emission levels has not happened for most atmospheric pollutants in spain the aim of this paper is to analyse the relationship between income growth and nine atmospheric pollutants in spain in order to obtain empirical outcomes for this analysis we adopt an input output approach and use namea data for the nine pollutants first we undertake a structural decomposition analysis for the period 1995 2000 to estimate the contribution of various factors to changes in the levels of atmospheric emissions and second we estimate the emissions associated with the consumption patterns of different groups of households classified according to their level of expenditure

combining revealed and stated preference data to estimate the nonmarket value of ecological services an assessment of the state of the science this paper reviews the marketing transportation and environmental economics literature on the joint estimation of revealed preference rp and stated preference sp data the rp and sp approaches are first described with a focus on the strengths and weaknesses of each recognizing these strengths and weaknesses the potential gains from combining data are described a classification system for combined data that emphasizes the type of data combination and the econometric models used is proposed a methodological review of the literature is pursued based on this classification system examples from the environmental economics literature are highlighted a discussion of the advantages and disadvantages of each type of jointly estimated model is then presented suggestions for future research in particular opportunities for application of these models to environmental quality valuation are presented

what happens to the relationship between eu allowances prices and stock market indices in europe abstract the stock market may reflect the economic conditions of an economy and a positive economic situation is expected to improve the companies profits which makes company shares more attractive since the expected dividends to shareholders will be larger theoretically higher economic activity leads to higher energy demand and consequently higher carbon emissions which give rise to higher eu allowances eua prices therefore the stock market and eua prices seem to be connected with causality going from the stock markets to eua prices this paper formally tests for it showing that the causality effectively runs from the stock market to the european climate exchange market furthermore the paper studies the effects of the evolution of european stock markets on the eua spot prices

emerging carbon constraints for corporate risk management abstract while discussions about global sustainability challenges abound the financial risks that they incur albeit important have received less attention we suggest that corporate risk assessments should include sustainability related aspects especially with relation to the natural environment and encompass the flux of critical materials within a company s value chain such a comprehensive risk assessment takes into account input as well as output related factors with this paper we focus on the flux of carbon and define carbon constraints that emerge due to the disposition of fossil fuels in the input dimension and due to direct and indirect climate change effects in the output dimension we review the literature regarding the financial consequences of carbon constraints on the macroeconomic sector and company level we conclude that a financial consequences seem to be asymmetrically distributed between and within sectors b the individual risk exposure of companies depends on the intensity of and dependency on carbon based materials and energy and c financial markets have only started to incorporate these aspects in their valuations this paper ends with recommendations on how to incorporate our results in an integrated carbon risk management framework

time is money improved valuation of time and transportation costs the proper valuation of time isimportant for estimating the demand for severaleconomic goods this paper explores the propervaluation of time when estimating recreationaldemand where time costs represent asubstantial portion of the purchase price toestimate demand this paper uses a travel costframework to analyze actual behavior revealedpreference data and hypothetical behavior stated preference data which is induced byhypothetical increases in access fees traveltime and travel distance by comparing theresponses to these three contingencies theanalysis adjusts and improves the valuation oftime costs as evidence of this improvement this analysis demonstrates a great increase inthe consistency between the revealed and stateddata similarly this paper improves thevaluation of transportation related costs

a box cox double hurdle model of wildlife valuation the citizen s perspective abstract a stated preference approach is used to elicit the attitudes of the general public towards coyote conservation the payment vehicle is presented in a way that explicitly prompts respondents to adopt a citizen perspective rather than a consumer perspective when responding to the survey to deal with the large numbers of zero responses a box cox double hurdle specification is used to model separately individuals choices about whether to support conservation or not and their choice about the level of support the results show that simpler analyses that do not account explicitly for these two different decisions would lead to misleading conclusions in the study of nuisance wildlife the study uses primary data from prince edward island canada

information and bargaining in markets for environmental quality this paper explores the role of information on residential real estate prices housing transactions from 1990 formed the sample frame for surveying home buyers on their knowledge of local environmental disamenities both at the time their homes were purchased and when the survey was conducted of particular interest was home buyers knowledge of nearby landfill sites because of clustering of survey responses a sample selection model that combines transaction data with 1990 census micro data was used the results suggest that home buyers are poorly informed about disamenities and that those who are informed bid down the price of a home

valuing public goods a comparison of survey and hedonic approaches although the theory of public goods has progressed rapidly since paul samuelson s seminal article the empirical measurement of the value of demand for public goods only recently has received increased attention perhaps the best known and most widely accepted empirical approach has been the use of hedonic prices wherein for example it is assumed that either wages or housing values reflect spatial variation in public good characteristics of different communities this indirect approach based on theoretical work of charles tiebout kelvin lancaster sherwin rosen and others has proven quite successful among public goods or bads which have been valued using the hedonic approach are climate i hoch air pollution robert anderson and thomas crocker d harrison and d rubinfeld social infrastructure r cummings et al and other community characteristics such as noise level j nelson and ethnic composition ann schnare an alternative approach is to directly ask households or individuals to state their willingness to pay for public goods using survey techniques despite arguments that strategic bias will invalidate survey results there exists the need for an alternative to the hedonic approach as an example consider the case of a remote and unique scenic vista valuable to recreators which is threatened by air pollution from a proposed coal fired plant a typical situation in the western united states although it is possible in principle to impute the value of clean air and visibility from the relative decline in local visitation which might follow construction of a power plant information on the value of visibility at the site is needed prior to construction for socially optimal decision making on plant location and pollution control equipment the hedonic approach is unavailable both because the scarcity of local population as opposed to recreators makes use of wage or property value data impossible and because scenic vistas may themselves be unique for these reasons a randall et al first applied survey methods for valuing visibility and other environmental effects of large coal fired power plants in the four corners region of new mexico since this initial application the survey approach has been widely used to value environmental commodities where market data for hedonic analysis is difficult to acquire see for example brookshire ives and schulze rowe et al brookshire et al other early attempts to value public goods using the survey approach include r davis peter bohm and j hammack and g brown although results of using the survey approach for estimating the value of public goods appear to be internally consistent replicable and consistent with demand theory see schulze et al little work on external validation has been reported thus the purpose of this paper is to report on an experiment designed to validate the survey approach by direct comparison to a hedonic property value study the los angeles metropolitan area was chosen for the experiment because of the well defined air pollution problem and be assistant professor university of wyoming assistant professor university of missouri rolla associate professor university of wyoming and professor university of wyoming respectively the research reported here was funded under a grant methods development for assessing air pollution control benefits from the u s environmental protection agency we would like to give special thanks to alan carlin and shelby gerking for their helpful suggestions and contributions additional helpful comments were received from a myrick freeman iii john tschirhart and james murdoch all conclusions are of course our sole responsibility

the evolution of household induced value chains and their environmental implications abstract the growing fragmentation of production processes and expansion of international trade in the last decades have increased the scope and complexity of value added chains worldwide causing a rearrangement of sectoral linkages intra and inter regionally in terms of economic spillovers this implies that a dollar entering a particular economy nowadays follows a different path than a decade before permeating in longer interregional feedback loops and creating additional multiplier effects outside its region of origin however it also implies that the environmental burden that such this dollar generates has changed in scale and spatial distribution in this paper we explore the evolution of these paths over the period 1997 2008 and highlight the main drivers of observed structural changes that contribute to the surge or decline of the spatial distribution of economic spillovers and greenhouse gases emissions we specifically study the effects of an increase in income in the united states the country with the largest trade volume in the world we introduce an extended version of the temporal leontief inverse tli framework that allows tracing the evolutionary path of the american households multiplier in a quasi dynamic fashion isolating the contribution of expenditure patterns income trade and foreign structural change to the temporal evolution we find similar growing multiplier effects inside and outside the us due to services and manufacturing respectively but a declining local environmental burden due to changes in interindustry relations inside the us with declining manufacturing and a reduced emission intensity we also highlight the fragmentation process with declining foreign intraregional spillovers and increasing trade spillovers

contingent valuation controversies and evidence contingent valuation cv has become one of the most widely used non market valuation techniques cv s prominence is due to its flexibility and ability to estimate total value including passive use value its use and the inclusion of passive use value in benefit cost analyses and environ mental litigation are the subject of a contentious debate this paper discusses key areas of the debate over cv and the validity of passive use value we conclude that many of the alleged problems with cv can be resolved by careful study design and implementation we further conclude that claims that empirical cv findings are theoretically inconsistent are not generally supported by the literature the debate over cv however has clarified several key issues related to nonmarket valuation and can provide useful guidance both to cv practitioners and the users of cv results

accounting for stochastic shadow values of time in discrete choice recreation demand models abstract in this paper a discrete choice recreation demand model that explicitly accounts for a stochastic shadow value of time function is proposed using data from a survey of san diego beach users the stochastic shadow value of time labor supply and beach choice are jointly estimated results from this joint estimation approach are compared with the familiar two step approach that estimates labor supply first and uses predicted values of time in the recreational site choice model the approaches produce markedly different welfare measures with the two step model which does not account for unobserved variability of time values predicting significantly higher values a monte carlo simulation illustrates how ignoring the stochastic nature of shadow value of time in discrete choice recreation demand models can bias model parameters and hence welfare estimates

electricity consumption and economic growth evidence from turkey abstract this study investigates the causal relationship between electricity consumption and real gdp in turkey during the period of 1950 2000 both of the series were found to be a stationary process around a structural break by the zivot and andrews test thus two different methodologies have been employed to test the granger non causality the dolado lutkepohl test using the vars in levels and the standard granger causality test using the detrended data both tests have yielded a strong evidence for unidirectional causality running from the electricity consumption to the income this implies that the supply of electricity is vitally important to meet the growing electricity consumption hence to sustain the economic growth in turkey

international trade and shared environmental responsibility by sector an application to the spanish economy abstract the aim of this paper is to define a shared responsibility criterion for analysing the impact of international trade on co 2 emissions applied to sectors with the approach proposed it is possible for sectors in a country to account for only a part of the emissions associated with exported and imported goods the agents considered as responsible for pollution are sectors two fold as producers and suppliers of intermediate inputs and final demand accounting for direct emissions linked to production and as consumers of intermediate inputs required for production accounting for direct and indirect emissions linked to consumption of inputs and the countries and foreign sectors that trade with these industries the responsibility of emissions is shared by all the participants along the global product chain depending on the value added of each step the criterion is applied to the spanish economy for the period 2000 to 2005 and proves useful for determining what economic policies may be suitable for mitigating anthropogenic impact on the environment and for including all the agents of the supply chain in the development of sustainable supply chain management

capital market response to emission rights returns evidence from the european power sector prior studies on the distributional effects of the european union s emission trading scheme eu ets have so far only relied on supply and demand data empirical evidence from capital markets has been missing we address this gap and measure the ets s economic consequences using the expectations of investors towards the regulatory impact on firm value employing a multifactor model we show that returns on common stock of the largest affected industry power generation are positively correlated with rising prices for emission rights this implies that the market predicts that firms are not only able to pass on their share of the regulatory burden to customers but even achieve windfall profits by overcompensating for the costs

a model of carbon price interactions with macroeconomic and energy dynamics abstract this paper develops a model of carbon pricing by considering two fundamental drivers of european union allowances economic activity and energy prices on the one hand economic activity is proxied by aggregated industrial production in the eu 27 as it provides the best performance in a preliminary forecasting exercise vs other indicators on the other hand brent natural gas and coal prices are selected as being the main carbon price drivers as highlighted by previous literature the interactions between the macroeconomic and energy spheres are captured in a markov switching var model with two states that is able to reproduce the boom bust business cycle hamilton 1989 first industrial production is found to impact positively negatively the carbon market during periods of economic expansion recession thereby confirming the existence of a link between the macroeconomy and the price of carbon second the brent price is confirmed to be the leader in price formation among energy markets bachmeier and griffin 2006 as it impacts other variables through the structure of the markov switching model taken together these results uncover new interactions between the recently created eu emissions market and the pre existing macroeconomic energy environment

consistency in mixed demand systems contingent valuation and travel cost data in contrast to previous literature we propose a consistency test that does not impose any particular common functional form for the preference structure underlying the travel cost tc and contingent valuation cv models we derive testable consistency conditions between tc and cv data in the context of mixed demand systems when valuing changes in environmental quality these conditions are a subset of the rationality conditions the proposed consistency tests are implemented combining tc and cv data the empirical results show that it is possible to combine stated tc and cv but not revealed tc and cv data

neighbourhood effects and housing demand in this paper we estimate a model of housing demand with neighborhood eects we exploit special features of the national sample of the american housing survey and properties of housing markets that allow us to create natural instruments and therefore identify the impact of social interactions we find evidence of both endogenous and contextual neighborhood eects we report two alternative sets of estimates for neighborhood eects that dier in terms of the instruments we use for estimating the model when the endogenous neighborhood eect is large the respective contextual eects are weak and vice versa the elasticity of housing demand with respect to the mean of the neighbors housing demands the endogenous eect ranges from 0 19 to 0 66 and is generally very significant the contextual eects are also very significant a key such eect the elasticity with respect to the mean of neighbors permanent incomes ranges from 0 17 to 0 54

eu emission allowances and the stock market evidence from the electricity industry this paper constitutes to our best knowledge the first econometric analysis on stock market effects of the eu emission trading scheme eu ets our results suggest that eu emission allowance eua price developments matter to the stock performance of electricity firms eua price changes and stock returns of the most important european electricity corporations are shown to be positively related this effect does not work asymmetrically so that stock markets do not seem to react differently to eua appreciations in comparison to depreciations the carbon market effect is shown to be both time and country specific it is particularly strong for the period of eua market shock in early 2006 and differs with respect to the countries where the electricity corporations analysed are headquartered stock market reactions to eua volatility could not be shown

case based decision theory this paper suggests that decision making under uncertainty is at least partly case based we propose a model in which cases are primitive and provide a simple axiomatization of a decision rule that chooses a best act based on its past performance in similar cases each act is evaluated by the sum of the utility levels that resulted from using this act in past cases each weighted by the similarity of that past case to the problem at hand the formal model of case based decision theory naturally gives rise to the notions of satisficing decisions and aspiration levels

a joint latent class model combining likert scale preference statements with choice data to harvest preference heterogeneity in addition to choice questions revealed and stated choices preference surveys typically include other questions that provide information about preferences preference statement data include questions on the importance of different attributes of a good or the extent of agreement with a particular statement the intent of this paper is to model and jointly estimate preference heterogeneity using stated preference choice data and preference statement data the starting point for this analysis is the belief that the individual has preferences and both his her choices and preference statements are manifestations of those preferences our modeling contribution is linking the choice data and preference statement data in a latent class framework estimation is straightforward using the e m algorithm even though our model has hundreds of preference parameters our estimates demonstrate that 1 within a preference class the importance anglers associate with different green bay site characteristics is in accordance with their responses to the preference statements 2 estimated across class utility parameters for fishing green bay are affected by the preference statement data 3 estimated across class preference statement response probabilities are affected by the inclusion of the choice data and 4 both data sets influence the number of classes and the probability of belonging to a class as a function of the individual s type

willingness to pay for quality improvements should revealed and stated preference data be combined abstract in this article we propose theoretically consistent welfare measurement of use and nonuse values for an improvement in environmental quality with revealed and stated preference data an analytical model based on the comparative static analysis of the variation function that describes the relationship between recreation demand and dichotomous choice contingent valuation models is estimated our results show that revealed and stated data should not be combined under the same assumed preference structure unless the two decisions imply the same change in behavior induced by the quality change in addition our results indicate scope effects in willingness to pay measures estimated with stated preference data

domestic ghg emissions and the responsibility of households in spain looking for regional differences abstractthe aim of this article is to analyze the responsibilities of spanish households as final consumers for the generation of domestic greenhouse gases emissions ghg by region of residence distinguishing between nuts 1 and nuts 2 autonomous regions the motivation is the process of convergence experimented by spanish regions based on the strong economic growth experienced by the country until 2008 which could results in different emissions responsibilities because of different lifestyles and production structures we examine in depth the relationships between a representative household in each region and its patterns of consumption although we do find a relationship between per capita income and regional responsibility for pollution generation it is based on a demand scale effect which overlaps the effects of the regional consumption patterns thus in the richest regions madrid northeast east despite their having a less polluting pattern than other regions the level of per capita em

combining revealed and stated preference data to estimate preferences for residential amenities a gmm approach we show how stated preference information obtained from a choice experiment and revealed preference information based on housing market transactions can be combined via generalized method of moments gmm estimation specifically we use a moment condition matching the predicted marginal willingness to pay wtp from a first stage hedonic model to the marginal wtp formula implied by the choice experiment utility function this is coupled with other moments from the choice experiment to produce gmm based estimates of parameters that reflect the strengths of each data source our application values remediation of a contaminated site in buffalo new york and we find evidence in support of estimates arising from our approach jel q51 q53

stock prices of clean energy firms oil and carbon markets a vector autoregressive analysis recent discussions of energy security and climate change have attracted significant attention to clean energy we hypothesize that rising prices of conventional energy and or placement of a price on carbon emissions would encourage investments in clean energy firms the data from three clean energy indices show that oil prices and technology stock prices separately affect the stock prices of clean energy firms however the data fail to demonstrate a significant relationship between carbon prices and the stock prices of the firms

quantifying the global and distributional aspects of american household carbon footprint abstract analysis of household consumption and its environmental impact remains one of the most important topics in sustainability research nevertheless much past and recent work has focused on domestic national averages neglecting both the growing importance of international trade on household carbon footprint and the variation between households of different income levels and demographics using consumer expenditure surveys and multi country life cycle assessment techniques this paper analyzes the global and distributional aspects of american household carbon footprint we find that due to recently increased international trade 30 of total us household co 2 impact in 2004 occurred outside the us further households vary considerably in their co 2 responsibilities at least a factor of ten difference exists between low and high impact households with total household income and expenditure being the best predictors of both domestic and international portions of the total co 2 impact the global location of emissions which cannot be calculated using standard input output analysis and the variation of household impacts with income have important ramifications for polices designed to lower consumer impacts on climate change such as carbon taxes the effectiveness and fairness of such policies hinges on a proper understanding of how income distributions rebound effects and international trade affect them

welfare analysis when budget constraints are nonlinear the case of flood hazard reduction abstract nonlinear budget constraints occur when goods have a quality dimension or possess characteristics and the price of the composite good is a nonlinear function of its characteristics homogeneity is generally not characteristic of indirect utility functions and demand functions when budget constraints are nonlinear in this situation willingness to pay methods that impose homogeneity or fail to impose restrictions implied by nonlinear budget constraints on demands are inappropriate a straightforward method of estimating willingness to pay when budget constraints are nonlinear implements a direct utility approach exact and biased welfare measures are obtained without integration

asymmetric impact of oil price on islamic sectoral stocks abstract this paper extends the literature concerning non linearity in oil stock relationships by putting forward a new paradigm of sectoral and islamic elements we explore the asymmetric impact of oil price on islamic stocks from a sectoral perspective using non linear autoregressive distributed lag cointegration methodology the main advantage of this methodology relies on its ability to simultaneously capture the short and long run asymmetries through both positive and negative oil price shocks our results show weak linkages between oil price changes and the islamic composite index however the nature and sensitivity of the reaction of stock prices to oil price shocks vary considerably across different sectors in the longer horizon the relationships between oil price and many islamic sectoral stocks tend to follow a nonlinear pattern furthermore the behavior of the real economic sectors indices reflects the performance of the composite index that is oil price resistant during the turbulent period after 2008 the response of the sectoral indices to oil price movements witnessed notable changes where the sectoral gains from oil price drop that have been observed during the period of study have been found to diminish after 2008 our finding is in line with the argument that the islamic composite index is grounded more on and within the real sectors these findings are robust when considering different oil proxies and different data time frequencies

are hypothetical referenda incentive compatible a comment in a recent article in this journal cummings al 1997 offer experimental evidence rejecting the hypothesis that a hypothetical referendum is an incentive compatible mechanism for obtaining the social value of or willingness to pay for changes in the allocation of environmental goods and services while cautions in offering a blanket rejection of hypothetical referenda as a means of measuring economic values on the basis of their findings the authors do suggest that at least in experimental settings respondents appear to behave differently when real money is changing hands wheather hypothetical situations adequately mimic real market situations has been debated in the contigent valuation literature since its inception see cummings brookshire and schulze 1986 cummings et al s finding of incentive incompatibility appears to offer strong evidence for the critics of hypothetical referenda

spanish food expenditure away from home fafh by type of meal changes in household income wife s labour force participation household size and other demographic factors influence purchasing meals away from home in spain spanish household expenditure on lunch breakfast and snacks away from home were investigated within the household production theory context the becker s model states that consumers maximize their utility subject not only to the budget constraint but also to a time constraint moreover this model assumes that consumers demand not only the food product itself but also the associated convenience to save time in food preparation therefore the relation between the value of time and food away from home has a high relevance data come from the spanish continuous household survey for 1996 due to the large number of zeros in the dependent variable different dependent variable censured models double hurdle infrequency of purchase etc have been specified and estimated these studies found that food purchasing behaviour away from home of spanish

asymmetric impacts of oil price uncertainty on chinese stock returns under different market conditions evidence from oil volatility index abstract the crude oil volatility index ovx is a direct and more accurate measure of oil price uncertainty this paper uses this kind of implied volatility index of oil prices to investigate the impacts of oil price uncertainty on the aggregate and sectoral stock returns in china this issue is resolved by using a quantile regression which can provide a more detailed examination under different market conditions meanwhile the asymmetric effects of uncertainty shocks are also examined by using the positive and negative changes of the ovx furthermore we assess whether the reform of march 27 2013 affected the ovx stock nexus since this reform was a major step to relax the control of domestic oil prices in china our results reveal that ovx changes mainly show significantly negative effects on the aggregate and sectoral stock returns in the bearish market in particular these effects depend largely on the positive shocks of the ovx rather than the negative shocks of the ovx moreover the reform of march 27 2013 decreased the impacts of the positive ovx shocks on chinese stock returns

energy prices and co2 emission allowance prices a quantile regression approach we use a quantile regression framework to investigate the impact of changes in crude oil prices natural gas prices coal prices and electricity prices on the distribution of the co2 emission allowance prices in the united states we find that i an increase in the crude oil price generates a substantial drop in the carbon prices when the latter is very high ii changes in the natural gas prices have a negative effect on the carbon prices when they are very low but have a positive effect when they are quite high iii the impact of the changes in the electricity prices on the carbon prices can be positive in the right tail of the distribution and iv the coal prices exert a negative effect on the carbon prices

forecasting realized volatility of crude oil futures with equity market uncertainty this paper examines whether the equity market uncertainty emu index contains incremental information for forecasting the realized volatility of crude oil futures we use 5 min high frequency tran