Research Tools in Natural Resource and Environmental Economics

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"not selected chapters, but a WHOEL book uploaded." Contents Acknowledgments Contributors PART I Introduction Chapter 1 Introduction to Research Tools in Natural Resource and Environmental Economics 1.1. Preliminaries 1.2. Theoretical Tools 1.2.1. Dynamic analysis 1.2.2. Stochastic analysis 1.2.3. Game theoretic analysis 1.3. Empirical and Experimental Tools 1.3.1. Economic valuation 1.3.2. The hedonic method 1.3.3. The sum of specific damages approach 1.3.4. Econometric estimation and simulation 1.3.5. Computable general equilibrium models 1.3.6. Experimental economic models 1.4. Interdisciplinary Tools 1.4.1. Ecological–economic models 1.4.2. GIS and spatial data analysis 1.4.3. Materials balance models 1.4.4. Industrial ecology models 1.5. Conclusions Acknowledgments References PART II Theoretical Tools Chapter 2 Dynamic Analysis 2.1. Introduction 2.2. The Role of Eigenvalues: Stability of First-Order Linear Differential Equations 2.2.1. Stability requirements in a nutshell 2.2.2. The stability properties of the Solow growth model 2.3. The Role of Eigenvalues: Stability of Systems of Linear Differential Equations 2.3.1. Stability requirements in a nutshell 2.4. Application of Linear Stability Analysis to Non-linear Dynamic Economic Models 2.4.1. When linear stability analysis works: The stable manifold theorem 2.4.2. When linear stability analysis fails: The central manifold theorem 2.5. The Zero-Cost Non-linear Fisheries Model 2.5.1. Linear stability analysis 2.5.2. Center manifold analysis Appendix A. Derivation of Eq. (24) Appendix B. Transforming System (24) to Diagonalizing Variables Appendix C. The Full Substitution Generating Eq. (31) References Chapter 3 Stochastic Analysis: Tools for Environmental and Resource Economics Modeling 3.1. Introduction 3.2. Results from Probability Theory 3.2.1. Probability space and random variables 3.2.2. Stochastic processes 3.3. Stochastic Calculus 3.3.1. Stochastic differential equations 3.3.2. Itô’s lemma 3.3.3. Existence and uniqueness of solutions, dependence on parameters, and initial conditions 3.3.4. The geometric Brownian motion 3.4. Optimal Stochastic Control 3.4.1. The HJB equation 3.4.2. Linear-quadratic and CRRA models 3.5. Irreversibility and Option Value 3.6. Non-expected Utility Models 3.6.1. Uncertainty aversion and multiple priors 3.6.2. Robust control methods 3.7. Summary References Chapter 4 Game Theory: Static and Dynamic Games 4.1. Introduction 4.2. Static Games 4.2.1. Self-sustaining international environmental agreements: An analytical treatment 4.2.2. IEA game 4.2.3. Networks and R&D cooperation among polluting oligopolists 4.2.4. Notes on some static games with private information 4.3. Dynamic Games 4.3.1. Open-loop versus feedback Nash equilibrium 4.3.2. Dynamic games in the exploitation of natural resources 4.3.3. Pollution games 4.3.4. Stackelberg equilibrium in dynamic games 4.3.5. Empirical models of dynamic games in resource and environmental economics 4.3.6. Dynamic games with imperfect information 4.4. Conclusion References PART III Empirical and Experimental Tools Chapter 5 Introduction to Economic Valuation Methods 5.1. Introduction 5.2. Economic Valuation Approaches 5.2.1. Introduction 5.2.2. Types of market valuations 5.2.3. Types of non-market valuation methods 5.3. Conducting Non-Market Valuation Studies 5.3.1. First step 5.3.2. Second step 5.3.3. Third step 5.3.4. Fourth step 5.3.5. Fifth step 5.4. Application of Economic Valuation Approaches 5.4.1. Market biodiversity values and market valuation methods 5.4.2. Revealed preference valuation methods and non-market biodiversity values 5.4.3. SP valuation methods and non-market biodiversity values 5.4.4. Gaps in knowledge, and suggestions for future research 5.5. Challenges for Valuation Studies 5.6. Conclusion References Chapter 6 The Hedonic Method: Value of Statistical Life, Wage Compensation, and Property Value Compensation 6.1. The Value of a Statistical Life (VSL) 6.2. The Hedonic Valuation of Environmental Quality 6.3. Hedonic Methods: Wage Compensation 6.4. Hedonic Methods: Property Value or Rent Compensation 6.5. Wage and Property Value Differentials are not Alternatives 6.6. A Graphical Exposition of the MultiMarket Hedonic Method 6.7. Can Single-Market Hedonic Studies Ever Produce Accurate Amenity Measures? 6.8. Conclusions: Hedonic Analysis as Practiced is Biased Against the Environment References Chapter 7 Environmental Valuation: The Sum of Specific Damages Approach References Chapter 8 Econometric Estimation of Non-linear Continuous-Time Models of Intertemporally Optimizing Agents 8.1. Introduction 8.2. System Representation 8.3. Estimation 8.3.1. Linear estimators 8.3.2. Non-linear estimators 8.3.3. Estimating models with boundary conditions 8.4. Stability Analysis 8.5. Example: Estimation of a Model from the Economics of Exhaustible Resources 8.6. Potential Improvements in Model Specification Appendix A References Chapter 9 Computable General Equilibrium Models for the Analysis of Economy–Environment Interactions 9.1. Introduction and Motivation 9.2. The Algebra of General Equilibrium 9.3. From Equilibrium Conditions to a CGE Model: The CES Economy 9.4. Social Accounting Matrices and Numerical Calibration 9.5. Modeling Applications: Integrating the Environment 9.5.1. Environmental consequences of liberalization and growth 9.5.2. Environmental resources: Scarcity and conservation 9.5.3. Climate impacts and environmental disasters 9.5.4. Pollution control: Pigovian taxation 9.5.5. Pollution control: Quantitative emission targets 9.5.6. Pollution control: Elastic factor supply and the double dividend 9.5.7. Pollution control: Technology policies 9.5.8. A non-separable environmental amenity 9.6. Summary, Caveats, and Future Research Directions References Chapter 10 Experimental Methods and Environmental and Natural Resource Policy 10.1. Introduction 10.2. Laboratory Experiments: Design Requirements 10.3. Laboratory Experiments Inform the Elicitation of Values for Non-priced Goods 10.4. Regulatory Institutions and Compliance 10.5. A “Success Story” for the Laboratory and Some Concluding Remarks References PART IV Interdisciplinary Tools Chapter 11 Modeling the Economics of Ecosystem Services at Watershed Scale: A Spatial Model of Land Use Externalities and the Regulating Functions of Wetlands 11.1. The Problem to be Modeled 11.2. Model Specification 11.3. Regulating Functions and Land Use Externalities: The Case of Yala Wetlands 11.4. Using the Model for Policy Experiments 11.5. Concluding Remarks References Chapter 12 Geographical Information Systems Models and Spatial Data Analysis 12.1. Introduction 12.2. Types of Spatial Data 12.3. Spatial Data and Non-Classical Inference 12.4. Exploratory Spatial Data Analysis 12.5. Confirmatory Spatial Data Analysis 12.5.1. Likelihood-based inference 12.5.2. Bayesian approaches 12.6. Conclusions References Chapter 13 Materials Balance Models 13.1. Digression: The First and Second Laws of Thermodynamics 13.1.1. Useful versus useless wastes 13.2. The Life-Cycle (Cradle-to-Grave) View of Mass Flows 13.3. Mass Balance as a Tool for Data Verification in LCA 13.4. A “Dow” for Mother Nature References Chapter 14 Industrial Ecology: Reflections of an Environmental Economist 14.1. Introduction 14.2. Setting the Stage 14.2.1. Industrial ecology 14.2.2. Environmental economics 14.3. Some Problems with Multioutput Production Modeling 14.3.1. The standard multioutput representation 14.3.2. Pollutants as outputs in the standard formulation 14.3.3. Pollutants as inputs 14.3.4. Introducing the materials balance 14.4. Factorially Determined Multioutput Production 14.4.1. Purification 14.4.2. Social planning problem with purification 14.4.3. Implementing the optimality conditions 14.4.4. Implementation of residual-reduction possibilities 14.4.5. Changes over time 14.5. Concluding Comments References Index