The B.E. Journal of Economic Analysis & Policy

Published by De Gruyter

Volume 9 Issue 2 - “Economic Geography and Color Maps” edited by Guest Editor Christopher Timmins

December 2009

Issue of The B.E. Journal of Economic Analysis & Policy

Contents
Journal Overview

Contributions Article

March 30, 2009

Geography: Graphics and Economics

William D Nordhaus, Xi Chen

Abstract

Past studies of the relationships between economic activity and geography have been hampered by limited spatial data on economic activity. This study presents revised data on global economic activity, the G-Econ database, which measures economic activity for the entire globe, measured at a 1° latitude by 1° longitude scale. The methodologies for the study are described. We show several graphical applications, including an "output globe." The study shows the location of economic deserts. The study indicates the importance of geophysical variables for Africa and questions whether the importance of latitude in economic-growth studies in fact reflects geophysical variables.

March 30, 2009

Green Market Geography: The Spatial Clustering of Hybrid Vehicles and LEED Registered Buildings

Matthew E Kahn, Ryan K. Vaughn

Abstract

This paper uses zip code level data to investigate the spatial distribution of two major "green" products. Using data from California, we document where hybrid vehicles cluster within the state. Using data for the entire nation, we study where LEED registered buildings cluster. By creating a novel measure of community environmentalism based on revealed preference political data, we document that green products cluster in environmentalist communities.

March 30, 2009

Regulating NO_x and SO₂ Emissions in Atlanta

Nicholas Muller, Daniel Tong, Robert Mendelsohn

Abstract

Through a series of experiments, we measure the marginal damage of emissions near Atlanta using a sophisticated integrated assessment model. The marginal damages of sulfur dioxide (SO2) are driven by proximity to downtown Atlanta; emissions produced closer to the city lead to higher exposures and therefore damages.The spatial pattern in damages from nitrogen oxide (NOx) emissions are more complex because of the powerful role of atmospheric chemistry. NOx emissions from ground-level sources in downtown Atlanta reduce aggregate exposures to both the tropospheric ozone as well as small particulates. In contrast, NOx discharges in suburban or rural areas lead to higher exposures and damages from both pollutants. These findings raise questions about the current policy of treating all NOx and SOx emissions as though they are alike.

March 30, 2009

Adapting to Climate Change Mosaically: An Analysis of African Livestock Management by Agro-Ecological Zones

S. Niggol Seo, Robert Mendelsohn, Ariel Dinar, Pradeep Kurukulasuriya

Abstract

This paper examines African livestock management across Agro-Ecological Zones (AEZs) to learn how they would adapt to climate change in the coming century. We analyze farm level decisions to own livestock and to choose a primary livestock species using logit models with and without country fixed effects or AEZ fixed effects. With a hot dry scenario, the results indicate that livestock ownership will increase slightly across all of Africa, but especially in West Africa and high elevation AEZs. Dairy cattle will decrease in semi-arid regions, sheep will increase in lowlands, and rearing chickens will increase at high elevations. On the other hand, if climate becomes wetter, livestock ownership will fall dramatically in lowlands and high elevation moist AEZs. Beef cattle will increase and sheep will fall in dry AEZs, dairy cattle will fall precipitously and goats will rise in moist AEZs, and chickens will increase at high elevations but fall at mid elevations. Therefore, adaptation measures should be tailored to a specific AEZ.

July 13, 2009

Park Location Affects Forest Protection: Land Characteristics Cause Differences in Park Impacts across Costa Rica

Alexander Pfaff, Juan Robalino, G. Arturo Sanchez-Azofeifa, Kwaw S Andam, Paul J Ferraro

Abstract

To support conservation planning, we ask whether a park's impact on deforestation rates varies with observable land characteristics that planners could use to prioritize sites. Using matching methods to address bias from non-random location, we find deforestation impacts vary greatly due to park lands' characteristics. Avoided deforestation is greater if parks are closer to the capital city, in sites closer to national roads, and on lower slopes. In allocating scarce conservation resources, policy makers may consider many factors such as the ecosystem services provided by a site and the costs of acquiring the site. Pfaff and Sanchez 2004 claim impact can rise with a focus upon threatened land, all else equal. We provide empirical support in the context of Costa Rica's renowned park system. This insight, alongside information on eco-services and land costs, should guide investments.

September 25, 2009

Climate Change and Conservation in Brazil: CGE Evaluation of Health and Wealth Impacts

Subhrendu K. Pattanayak, Martin T. Ross, Brooks M. Depro, Simone C. Bauch, Christopher Timmins, Kelly J. Wendland, Keith Alger

Abstract

Ecosystem services are public goods that frequently constitute the only source of capital for the poor, who lack political voice. As a result, provision of ecosystem services is sub-optimal and estimation of their values is complicated. We examine how econometric estimation can feed computable general equilibrium (CGE) modeling to estimate health-related ecosystem values. Against a back drop of climate change, we analyze the Brazilian policy to expand National Forests (FLONAS) by 50 million hectares. Because these major environmental changes can generate spillovers in other sectors, we develop and use a CGE model that focuses on land and labor markets. Compared to climate change and deforestation in the baseline, the FLONAS scenario suggests relatively small declines in GDP, output (including agriculture) and other macro indicators. Urban households will experience declines in their welfare because they own most of the capital and land, which allows them to capture most of the deforestation benefits. In contrast, even though rural households have fewer opportunities for subsistence agriculture and face additional competition with other rural agricultural workers for more limited employment, their welfare improves due to health benefits from conservation of nearby forests. The efficiency vs. equity tradeoffs implied by the FLONAS scenario suggests that health-related ecosystem services will be underprovided if the rural poor are politically weaker than the urban rich. In conclusion, we briefly discuss the pros and cons of the CGE strategy for valuing ecosystem-mediated health benefits and evaluating contemporary policies on climate change mitigation.

About this journal

Objective
The B.E. Journal of Economic Analysis & Policy (BEJEAP) welcomes submissions that employ microeconomics to analyze issues in organizational economics, consumer behavior, and public policy. Articles submitted to BEJEAP can come in two formats: research papers and letters. Authors should bring to their analysis whatever microeconomic theoretical, experimental or econometric tools are helpful. We publish both empirical work and applied theory (though not more abstract forms of applied theory), and our aim is to disseminate papers that have practical implications for public policy, organizational or individual decision making.

Topics

Design of organizations and institutions
Industrial organization
Health economics
Public finance
Labour Economics
Economics of education, family, development, law, or the environment
Effects of domestic and international policy

Article formats
Research Papers, Letters

> Information on submission process

Volume 9 Issue 2 - “Economic Geography and Color Maps” edited by Guest Editor Christopher Timmins

Issue of The B.E. Journal of Economic Analysis & Policy

Geography: Graphics and Economics

Abstract

Green Market Geography: The Spatial Clustering of Hybrid Vehicles and LEED Registered Buildings

Abstract

Regulating NOx and SO2 Emissions in Atlanta

Abstract

Adapting to Climate Change Mosaically: An Analysis of African Livestock Management by Agro-Ecological Zones

Abstract

Park Location Affects Forest Protection: Land Characteristics Cause Differences in Park Impacts across Costa Rica

Abstract

Climate Change and Conservation in Brazil: CGE Evaluation of Health and Wealth Impacts

Abstract

Regulating NO_x and SO₂ Emissions in Atlanta