Search results for "Externality"
showing 10 items of 74 documents
A review of Payment for Ecosystem Services for the economic internalization of environmental externalities: A water perspective
2016
Abstract The allocation of economic value to environmental goods is intended to internalize the socio-economic and environmental costs of policies implemented and thus recognizes the value of the ecosystem and the consequences of environmental damage. This entails identifying the costs and benefits of management measures for conservation and of degraded ecosystems. The difficulties of this task are: (i) they are goods that have no market and (ii) there is a need for economic funding for conservation purposes. Payment for Ecosystem Services (PES) seeks to internalize the environmental externalities of human actions, ascribing monetary value to Ecosystem Services (ES) and helping decision-mak…
Does EU cohesion policy work? Theory and evidence
2017
This paper evaluates the effectiveness of European Cohesion Policy in the regions of 12 EU countries in the period 1991–2008, on the basis of a spatial growth model, which allows for the identification of both direct and indirect effects of EU funds on GDP per worker growth. We find that “Objective 1” funds are characterized by strong spatial externalities and a positive and concave effect on the growth of GDP per worker, which reaches a peak at the ratio funds/GDP of approximately 3 percent and becomes non-significant after 4 percent. “Objective 2” and “Cohesion” funds have nonsignificant effects, while all the other funds exert a positive and significant effect, but their size is very lim…
Sustainable growth and environmental catastrophes
2017
Abstract In the standard AK growth model we introduce the threat of an ecological catastrophe and study the consequences for the economic variables in the long-run. We extend the basic framework by considering two environmental externalities: the first one is local and gives account of the marginal damage from emissions flow; the second one is aggregate, or global, and relates to the extreme damage which may happen if the accumulated stock of pollutants is on the threshold of a worldwide catastrophe. In this context dominated by market failures, we focus on the socially optimal solution and the search of conditions for sustainability. We identify the efficient balanced growth path, which ma…
Great Britain and Differentiated Integration in Europe
2018
The United Kingdom has always been a special case in the European integration project. The British exceptionalism manifested in various forms and ways over the history. June 23rd 2016 delivered another culmination point in the story of the stubborn European’s relations with its continental partners. The so-called Brexit referendum, which brought about victory for the supporters of the UK leaving the European Union, marks an important milestone in these relations. It has never been an easy marriage and many times threatened by the divorce. Instead of becoming ever closer, the European Union becomes ever loser and the UK is ever closer to leaving. Brexit is not only vital for the British, it …
From bus to tramway: Is there an economic impact of substituting a rapid mass transit system? An empirical investigation accounting for anticipation …
2018
Abstract Hedonic pricing models and price equations have been extensively used to retrieve the implicit prices of urban externalities through real estate markets. Many applications have been devoted to investigating the impact of new mass transit systems, such as rail infrastructures. However, the implementation of such infrastructures usually takes some time and markets can react with an anticipation effect that can vary according to the different development phases. Moreover, the impact may be different if it acts as a substitute to existing rapid transit services. This paper focuses on the impact of substituting bus rapid transit (BRT) for light rail transit (LRT) services, taking into a…
Port expansion and negative externalities: a willingness to accept approach
2015
Port expansion has been seen as the origin of negative externalities, affecting local residents’ well-being and contributing to the poor public image of ports. In this study, the contingent valuation method is used to estimate the costs borne by local residents as a consequence of the negative externalities derived from the growth of the Port of Valencia (Spain) in the last 30 years. As transport project appraisal has become more complex, this technique complements existing methodologies in this field, such as the social cost benefit analysis and the multicriteria analysis. Given the perceived property rights of families that have been living close to the port for a long time, a willingness…
Transport Logistics and Modal Split of Spanish Exports to Europe: Empirical Evidence
2006
This article attempts to find the determinants of mode choice decisions for Spanish shipments to Europe and North Africa in four productive sectors that presents differentiated transport logistics. To this end, exhaustive fieldwork was carried out and a database constructed, including 1251 observations collected from transport decision-makers. A mixed logit is used to estimate a modal choice model, consistent with economic theory of modal choice in a price-time reliability framework. The main findings are that quality attributes of service influence modal choice only for the relatively high-value sectors whereas relatively low-value sectors are mainly affected by transport costs. In terms o…
Domestic Policies in Self-Enforcing Trade Agreements
2012
If all cross-country externalities travel through the terms-of-trade, efficient trade agreements target the terms-of-trade but ignore domestic policies. This argument has been advanced by prominent studies on trade agreements. The present paper shows that its logic fails if production possibilities are intertemporally linked -- for example, under dynamic factor accumulation. In this case, past policies shape current production possibilities and thus affect defection temptations. Therefore, self-enforcing trade agreements that leave the choice of domestic policies to individual countries risk that countries abandon the zone of voluntarily cooperation while optimizing their policies. Conseque…
Isolating the climate change impacts on air-pollution-related-pathologies over central and southern Europe – a modelling approach on cases and costs
2019
Air pollution has important implications for human health and associated external costs to society and is closely related to climate change. This contribution tries to assess the impacts of present (1996-2015) and future (2071-2100 under RCP8.5) air pollution on several cardiovascular and respiratory pathologies and estimate the difference in the costs associated with these health impacts on the European population. For this, air quality data from the regional chemistry-climate modelling system of the Weather Research and Forecasting (WRF) model coupled with Chemistry (WRF-Chem) are used, together with some epidemiological information from the European Commission. The methodology considered…
Isolating the climate change impacts on air pollution-related-pathologies over Europe – A modelling approach on cases and costs
2019
Air pollution has important implications on human health and associated external costs to society, and is closely related to climate change. This contribution tries to assess the impacts of present (1996–2015) and future (2071–2100 under RCP8.5) air pollution on several cardiovascular and respiratory pathologies and to estimate the difference in the costs associated to those health impacts on European population. For that, air quality data from the WRF-Chem regional chemistry/climate modelling system is used, together with some epidemiological information from the European Commission. The methodology considered relies on the EVA exposure-response functions and economic valuation…