a review of wta wtp studies abstract willingness to accept wta is usually substantially higher than willingness to pay wtp these constructs have been studied for roughly 30 years and with a wide variety of goods this paper reviews those studies we find that the less the good is like an ordinary market good the higher is the ratio the ratio is highest for non market goods next highest for ordinary private goods and lowest for experiments involving forms of money a generalization of this pattern holds even when we account for differences in survey design ordinary goods have lower ratios than non ordinary ones we also find that ratios in real experiments are not significantly different from hypothetical experiments and that incentive compatible elicitation yields higher ratios

willingness to accept willingness to pay and the income effect abstract the gap between willingness to pay wtp and willingness to accept wta has previously been studied by searching for evidence of substitutability the neoclassical hypothesis or status quo bias testing for neoclassical versus psychological theories of preferences we study the gap differently asking whether the observed pairs of wta and wtp are consistent with neoclassical preferences we use sugden s alternatives to the neoclassical theory of choice in i bateman k g willis eds valuing environmental preferences theory and practice of the contingent valuation method in the us eu and developing countries oxford university press oxford pp 152 180 chapter 6 result showing that the effect of income on wtp can be approximated from information on the ratio wta wtp drawing inferences from a meta analysis of 201 wta wtp ratios we conclude that the data are not consistent with neoclassical preferences

up scaling formative phases and learning in the historical diffusion of energy technologies the 20th century has witnessed wholesale transformation in the energy system marked by the pervasive diffusion of both energy supply and end use technologies just as whole industries have grown so too have unit sizes or capacities analysed in combination these unit level and industry level growth patterns reveal some consistencies across very different energy technologies first the up scaling or increase in unit size of an energy technology comes after an often prolonged period of experimentation with many smaller scale units second the peak growth phase of an industry can lag these increases in unit size by up to 20 years third the rate and timing of up scaling at the unit level is subject to countervailing influences of scale economies and heterogeneous market demand these observed patterns have important implications for experience curve analyses based on time series data covering the up scaling phases of energy technologies as these are likely to conflate industry level learning effects with unit level scale effects the historical diffusion of energy technologies also suggests that low carbon technology policies pushing for significant jumps in unit size before a formative phase of experimentation with smaller scale units are risky

preserving waterfowl habitat on the canadian prairies economic incentives versus moral suasion this paper examines a pilot project of nawmp that encourages farmers to promote or maintain waterfowl habitat by relying not only on economic incentives but on awareness education and moral suasion the pilot project relies on farmers attitudes to keep payments low because project payments substitute for grain program subsidies thus constituting a transfer from canadian taxpayers to u s contributors to nawmp a survey instrument and regression analysis are used to examine attitudes economic incentives and willingness to pay and willingness to accept compensation for modifying land use in order to conserve waterfowl habitat the results indicate that current economic incentives offered to agricultural producers are inadequate because they ignore nonmarket costs and that a positive attitude toward habitat preservation cannot be used as a substitute for monetary incentives

the measurement of tourist income multipliers abstract there have been many area studies measuring tourism income multipliers and these have been well covered in a number of review articles however the treatment of income is not always made explicit and the term is only loosely defined this article addresses the issue of personal taxation and social insurance contributions and shows that the stage at which they are deducted as leakages can have very different effects on the resulting multiplier values

network externality perspective of feed in tariffs fit instruments some observations and suggestions abstract existing energy policy frameworks revolving around the acceleration of deployment 1 of renewable energy technology can be broadly classified as the quantity vs price approach with this brief viewpoint this paper suggests another perspective of viewing these instruments in terms of a more fundamental basis whether the deployment in capacity is in terms of a cost minimization approach or a network externality approach we suggest that the generic price or feed in tariff fit approach in subsidizing renewable electricity generation and associated income would create a bandwagon or self propagation effect among users rendering the renewable energy technology spreads like a software or information technology our objective is to raise awareness of this technology dynamics oriented perspective in renewable deployment supplementing the conventional installation subsidies perspective we hope that it would inspire more empirical works and studies relating to the policy implications of this viewpoint

emergence of new economics energy transition models a review abstract well known academic and non academic institutions call for a new approach in economics able to capture features of modern economies including but not limited to complexity non equilibrium and uncertainty in this paper we provide a systematic review of ecological macroeconomic models that are suitable for the investigation of low carbon energy transitions and assess them based on the features considered desirable for a new approach in economics we draw two main conclusions firstly the knowledge base and structure of these existing ecological macroeconomic models are relevant alongside other types of models for the creation of a new approach in economics secondly the reviewed models are policy relevant especially in the context of the complexity and urgency of rapid energy transitions where increasingly policymakers require economic models able to capture real world characteristics however further improvements are needed to these models and future research should focus on i assuring comparability of models results and their policy insights ii incorporation of the relationships between macroeconomics finance and sustainability and iii the institutionalization of a new approach in economics

ftt power a global model of the power sector with induced technological change and natural resource depletion abstract this work introduces a model of future technology transformations for the power sector ftt power a representation of global power systems based on market competition induced technological change itc and natural resource use and depletion it is the first component of a family of sectoral bottom up models of technology designed for integration into the global macroeconometric model e3mg itc occurs as a result of technological learning produced by cumulative investment and leads to highly nonlinear irreversible and path dependent technological transitions the model uses a dynamic coupled set of logistic differential equations as opposed to traditional bottom up energy models based on systems optimisation such differential equations offer an appropriate treatment of the times and structure of change involved in sectoral technology transformations as well as a much reduced computational load resource use and depletion are represented by local cost supply curves which give rise to different regional energy landscapes the model is explored for a single global region using two simple scenarios a baseline and a mitigation case where the price of carbon is gradually increased while a constant price of carbon leads to a stagnant system mitigation produces successive technology transitions leading towards the gradual decarbonisation of the global power sector

assessing global resource use and greenhouse emissions to 2050 with ambitious resource efficiency and climate mitigation policies achieving sustainable development requires the decoupling of natural resource use and environmental pressures from economic growth and improvements in living standards g7 leaders and others have called for improved resource efficiency along with inclusive economic growth and deep cuts in global greenhouse emissions however the outlooks for and interactions between global natural resource use resource efficiency economic growth and greenhouse emissions are not well understood we use a novel multi regional modeling framework to develop projections to 2050 under existing trends and three policy scenarios we find that resource efficiency could provide pro growth pro environment policies with global benefits of usd 2 4 trillion in 2050 and ease the politics of shifting towards sustainability under existing trends resource extraction is projected to increase 119 from 2015 to 2050 from 84 to 184 billion tonnes per annum while greenhouse gas emissions increase 41 both driven by the value of global economic activity more than doubling resource efficiency and greenhouse abatement slow the growth of global resource extraction so that in 2050 it is up to 28 lower than in existing trends resource efficiency reduces greenhouse gas emissions by 15 20 in 2050 with global emissions falling to 63 below 2015 levels when combined with a 2 c emissions pathway in contrast to greenhouse abatement resource efficiency boosts near term economic growth these economic gains more than offset the near term costs of shifting to a 2 c emissions pathway resulting in emissions in 2050 well below current levels slower growth in resource extractions and faster economic growth

the benefits and costs of riparian analysis habitat preservation a willingness to accept willingness to pay contingent valuation approach abstract the contingent valuation method cvm was used to obtain the willingness to pay wtp of households in the contiguous area of the garonne river near toulouse france and the willingness to accept wta of households that currently own land on the banks of the river to provide a strip of riparian land for habitat preservation results for the wtp study indicated a relatively large difference in wtp between open and closed ended responses when corrected for the substantial number of 0 observations the wtp was reduced by about half the wta results were constrained by relatively few positive responses however the value given by farmers who indicated a positive wta appears consistent with revenues generated from crops moreover many farmers who were already providing habitat preservation indicated a zero minimum wta although the small number of wta responses severely limits the ability to draw definitive conclusions a comparison of the derived benefits wtp and costs wta was made which appeared to suggest the possibility of a favorable a benefit cost ratio

the dynamics of technology diffusion and the impacts of climate policy instruments in the decarbonisation of the global electricity sector this paper presents an analysis of climate policy instruments for the decarbonisation of the global electricity sector in a non equilibrium economic and technology diffusion perspective energy markets are driven by innovation path dependent technology choices and diffusion however conventional optimisation models lack detail on these aspects and have limited ability to address the effectiveness of policy interventions because they do not represent decision making as a result known effects of technology lock ins are liable to be underestimated in contrast our approach places investor decisionmaking at the core of the analysis and investigates how it drives the diffusion of low carbon technology in a highly disaggregated hybrid global macroeconometric model ftt power e3mg ten scenarios to 2050 of the electricity sector in 21 regions exploring combinations of electricity policy instruments are analysed including their climate impacts we show that in a diffusion and path dependent perspective the impact of combinations of policies does not correspond to the sum of impacts of individual instruments synergies exist between policy tools we argue that the carbon price required to break the current fossil technology lock in can be much lower when combined with other policies and that a 90 decarbonisation of the electricity sector by 2050 is affordable without early scrapping 2014 the authors published by elsevier ltd this is an open access article under the cc by license

technological change in economic models of environmental policy a survey this paper provides an overview of the treatment of technological change in economic models of environmental policy numerous economic modeling studies have confirmed the sensitivity of mid and long run climate change mitigation cost and benefit projections to assumptions about technology costs in general technical progress is considered to be a noneconomic exogenous variable in global climate change modeling however there is overwhelming evidence that technological change is not an exogenous variable but to an important degree endogenous induced by needs and pressures hence some environmenteconomy models treat technological change as endogenous responding to socio economic variables three main elements in models of technological innovation are i corporate investment in research and development ii spillovers from r d and iii technology learning especially learning by doing the incorporation of induced technological change in different types of environmental economic models tends to reduce the costs of environmental policy accelerates abatement and may lead to positive spillover and negative leakage

contingent valuation of ecotourism in annapurna conservation area nepal implications for sustainable park finance and local development abstract to determine willingness to pay wtp for candidate entry fees contingent valuation surveys were administered to 315 foreign visitors to the annapurna conservation area nepal during april and may of 2006 the results of logit regression showed that the bid amount family size visitors satisfaction the use of a guide and group size were the most significant predictors of wtp results suggest that most visitors would be willing to pay an entry fee considerably higher than the current fee of 27 u s dollars usd the mean and median wtp were 69 2 and 74 3 usd respectively the most common explanation for wtp by respondents was a desire to better protect the environment the most common explanation for unwillingness to pay was that the bid was simply too expensive two models were developed based upon different predictions of visitor numbers an optimistic case and pessimistic case to calculate the expected revenue production and likely gross local economic impact of candidate entry fees based on this analysis we recommend an increase in the entry fee to usd 50 in the optimistic scenario this higher entry fee leaves a budget surplus in the pessimistic scenario it would reduce current budget deficits

demand pull instruments and the development of wind power in europe a counterfactual analysis renewable energy technologies are called to play a crucial role in the reduction of greenhouse gas emissions since most of these technologies did not yet reach grid parity public policies have been implemented in order to foster their deployment the approach that has been privileged in europe is the demand pull approach that aims at creating a demand for these new technologies and at stimulating their diffusion this paper examines the effect of demand pull policies on the diffusion of onshore wind power technology in six european countries denmark france germany italy portugal and spain in a first step a micro founded model of diffusion is calibrated in order to replicate the observed diffusion of wind power in these six countries in a second step a counterfactual analysis is conducted by investigating several scenarios by taking into account the complex self sustained dynamics of diffusion and the learning spillovers that operate in the wind power sector we can derive several insights about demand pull policies first the impact of a demand pull policy on the diffusion of wind power is determined by the stage at which it comes to support it the effect seems to be stronger at the beginning of the diffusion second international spillovers do operate in the wind power sector these international spillovers however are not strong enough to foster the diffusion of wind power in a country having no demand pull support we can derive from these two statements that a strategy consisting in not implementing any demand pull policy with the expectation that international spillovers will reduce the cost of wind power and foster the diffusion of the technology that then shall become competitive is not a good option for a country targeting a high share of wind power in its energy mix

the impacts of the trade liberalization of environmental goods on power system and co2 emissions abstract the trade liberalization of environmental goods eg through as environmental goods agreement ega is crucial in low carbon electricity technology diffusion however there is a big gap of the eg definition lists and the integrated effectiveness analysis of ega this paper analyses the effects of the trade liberalization of eg based on macroeconomic and electricity sector models and attempts to find a more efficient eg trade policy by comparing different eg lists considering end use control and combining the eg policy with a carbon tax the results show that the trade liberalization of eg does not necessarily benefit the environment without other policies as the effects of the multiple end uses of eg on conventional energy might result in environmental damage we find that merging an ega into a global carbon tax system would enhance the effects of carbon tax on co2 reduction by 33 and simultaneously lower the gdp loss due to the carbon tax by 75 the economic benefits from the ega could offset the costs of other environmental policies thus end use control and other environmental policies should be considered at both the global and regional levels in the setting of international trade agreements that target eg

the neighbor effect simulating dynamics in consumer preferences for new vehicle technologies abstract understanding consumer behaviour is essential in designing policies that efficiently increase the uptake of clean technologies over the long run expert opinion or qualitative market analyses have tended to be the sources of this information however greater scrutiny on governments increasingly demands the use of reliable and credible evidence to support policy decisions while discrete choice research and modeling techniques have been applied to estimate consumer preferences for technologies these methods often assume static preferences this study builds on the application of discrete choice research and modeling to capture dynamics in consumer preferences we estimate canadians preferences for new vehicle technologies under different market assumptions using responses from two national surveys focused on hybrid gas electric vehicles and hydrogen fuel cell vehicles the results support the relevance of a range of vehicle attributes beyond the purchase price in shaping consumer preferences towards clean vehicle technologies they also corroborate our hypothesis that the degree of market penetration of clean vehicle technologies is an influence on people s preferences the neighbor effect finally our results provide behavioural parameters for the energy economy model cims which we use here to show the importance of including consumer preference dynamics when setting policies to encourage the uptake of clean technologies

on the global economic potentials and marginal costs of non renewable resources and the price of energy commodities a model is presented in this work for simulating endogenously the evolution of the marginal costs of production of energy carriers from non renewable resources their consumption depletion pathways and timescales such marginal costs can be used to simulate the long term average price formation of energy commodities drawing on previous work where a global database of energy resource economic potentials was constructed this work uses cost distributions of non renewable resources in order to evaluate global flows of energy commodities a mathematical framework is given to calculate endogenous flows of energy resources given an exogenous commodity price path this framework can be used in reverse in order to calculate an endogenous marginal cost of production of energy carriers given an exogenous carrier demand using rigid price inelastic assumptions independent of the economy these two approaches generate limiting scenarios that depict extreme use of natural resources this is useful to characterise the current state and possible uses of remaining non renewable resources such as fossil fuels and natural uranium the theory is however designed for use within economic or technology models that allow technology substitutions in this work it is implemented in the global power sector model ftt power policy implications are given

a new meta analysis on the wtp wta disparity abstract this study reports a new meta analysis of papers that elicit willingness to pay wtp and willingness to accept compensation wta measures of value for the same good we investigate the effects of type of good and several survey design features on the wtp wta disparity measured as the logarithm of the ratio of mean wta to mean wtp confirming horowitz and mcconnell s 2002 pioneering meta analysis we find the disparity is smaller for ordinary private goods than for public and non market goods that it is not solely an artifact of using hypothetical transactions or other weak experimental or survey methods and that it is smaller for studies using student subjects in addition we find that the disparity is smaller when subjects have experience valuing the good in real markets or through repeated experimental trials in contrast to horowitz and mcconnell we find the disparity is significantly smaller in studies using incentive compatible elicitation mechanisms the disparity is smaller in more recent studies an effect that is attributable only in part to changes in study characteristics

dynamics of energy technologies and global change technological choices largely determine the long term characteristics of industrial society including impacts on the natural environment however the treatment of technology in existing models that are used to project economic and environmental futures remains highly stylized based on work over two decades at iiasa we present a useful typology for technology analysis and discuss methods that can be used to analyze the impact of technological changes on the global environment especially global warming our focus is energy technologies the main source of many atmospheric environmental problems we show that much improved treatment of technology is possible with a combination of historical analysis and new modeling techniques in the historical record we identify characteristic l such network e ects yield high barriers to entry even for superior competitors these simple observations allow three improvements to modeling of technological change and its consequences for global environmental change one is that the replacement of long lived infrastructures over time has also replaced the fuels that power the economy to yield progressively more energy per unit of carbon pollution from coal to oil to gas such replacement has d they also include endogenous generation of s we show that doing so can yield projections with lessened environmental impacts without necessarily incurring negative e ect on the economy arriving on that path by the year 2100 depends on intervening actions such as incentives to promote greater diversity in technology and lower barriers to entry for new infrastructures that could accelerate historical trends of decarbonization 1999 elsevier science ltd all rights reserved