scholarly journals Addressing Global Environmental Externalities: Transaction Costs Considerations

2014 ◽  
Vol 52 (2) ◽  
pp. 424-479 ◽  
Author(s):  
Gary D. Libecap
Keyword(s):  
Property Rights ◽  
Transaction Costs ◽  
National Parks ◽  
Stratospheric Ozone ◽  
Montreal Protocol ◽  
Scientific Uncertainty ◽  
Environmental Externalities ◽  
Wild Fauna ◽  
Global Environmental ◽  
Benefits And Costs

Is there a way to understand why some global environmental externalities are addressed effectively, whereas others are not? The transaction costs of defining the property rights to mitigation benefits and costs is a useful framework for such analysis. This approach views international cooperation as a contractual process among country leaders to assign those property rights. Leaders cooperate when it serves domestic interests to do so. The demand for property rights comes from those who value and stand to gain from multilateral action. Property rights are supplied by international agreements that specify resource access and use, assign costs and benefits including outlining the size and duration of compensating transfer payments, and determining who will pay and who will receive them. Four factors raise the transaction costs of assigning property rights: (i) scientific uncertainty regarding mitigation benefits and costs; (ii) varying preferences and perceptions across heterogeneous populations; (iii) asymmetric information; and (iv) the extent of compliance and new entry. These factors are used to examine the role of transaction costs in the establishment and allocation of property rights to provide globally valued national parks, implement the Convention on the International Trade in Endangered Species of Wild Fauna and Flora, execute the Montreal Protocol to manage emissions that damage the stratospheric ozone layer, set limits on harvest of highly-migratory ocean fish stocks, and control greenhouse gas emissions. ( JEL D23, P14, Q22, Q51, Q54, Q58)

scholarly journals Healing the Ozone Layer

2019 ◽  
pp. 304-322
Author(s):  
Frederike Albrecht ◽  
Charles F. Parker
Keyword(s):  
Gold Standard ◽  
Environmental Governance ◽  
Stratospheric Ozone ◽  
Ozone Layer ◽  
Montreal Protocol ◽  
Policy Changes ◽  
Stratospheric Ozone Layer ◽  
Environmental Regimes ◽  
Global Environmental ◽  
Ozone Depleting Substances

The Montreal Protocol—the regime designed to protect the stratospheric ozone layer—has widely been hailed as the gold standard of global environmental governance and is one of few examples of international institutional cooperative arrangements successfully solving complex transnational problems. Although the stratospheric ozone layer still bears the impacts of ozone depleting substances (ODSs), the problem of ozone depletion is well on its way to being solved due to the protocol. This chapter examines how the protocol was designed and implemented in a way that has allowed it to successfully overcome a number of thorny challenges that most international environmental regimes must face: how to attract sufficient participation, how to promote compliance and manage non-compliance, how to strengthen commitments over time, how to neutralize or co-opt potential ‘veto players’, how to make the costs of implementation affordable, how to leverage public opinion in support of the regime’s goals, and, ultimately, how to promote the behavioural and policy changes needed to solve the problems and achieve the goals the regime was designed to solve. The chapter concludes that while some of the reasons for the Montreal Protocol’s success, such as fairly affordable, available substitutes for ODSs, are not easy to replicate, there are many other elements of this story that can be utilized when thinking about how to design solutions to other transnational environmental problems.

What Could a World Environmental Organization Do?

2001 ◽  
Vol 1 (1) ◽  
pp. 29-34 ◽  
Author(s):  
John Whalley
Keyword(s):  
Property Rights ◽  
New World ◽  
Significant Degree ◽  
Environmental Externalities ◽  
Environmental Organization ◽  
Global Environmental

This article evaluates the case for a new World Environmental Organization. It suggests that the main purpose of such an institution could be to accomplish the internalization of global environmental externalities which, for a variety of reasons, has not been achieved to any significant degree in recent decades. This stands in contrast to recent proposals that call for a mere strengthening of existing global arrangements. The benefits of this approach, as well as some of its problems, such as ambiguous property rights, are discussed.

The Effects of Transaction Costs, Landlord and Tenant Practices and Property Rights on Foreign Real Estate Investment

2013 ◽  
Vol 7 (3) ◽  
pp. 351-370 ◽  
Author(s):  
Hassan Gholipour Fereidouni ◽  
Usama Al-mulali ◽  
Miswan Abdul Hakim Bin Mohammed
Keyword(s):  
Real Estate ◽  
Property Rights ◽  
Transaction Costs ◽  
Real Estate Investment

Analysis of Externalities of Economic Activity of the Enterprise

2021 ◽  
Vol 2021 (2) ◽  
pp. 86-94
Author(s):  
Dmytro V. Kozlov
Keyword(s):  
Transaction Costs ◽  
Economic Activity ◽  
Environmental Externalities ◽  
Negative Externalities ◽  
Time Duration ◽  
Marginal Costs ◽  
Positive Externalities ◽  
State And Market ◽  
The Impact

The problems of research of internalities and externalities with the further development of the general classification of externalities of economic activity of the enterprise are defined. The influence of negative and positive externalities on society and enterprise is considered. The concept of negative externalities differs from transaction costs. It is noted that transaction costs can be reflected in cash and can be offset by market inclusion in the price of the products, but this is not possible for externalities. It is emphasized that the purpose of economic activity of any enterprise is to exceed the positive externalities over the negative and achieve the maximum difference between them. The different time duration of the impact of the enterprise on third parties is given. The sign of externalities on the scale of action is emphasized. The externalities of the enterprise are considered in their essence according to the principles of sustainable development, highlighting economic, social and environmental externalities. It is emphasized that economic externalities can arise in the course of the whole business cycle of full-fledged work of all parts of the enterprise. In contrast to economic, social externalities affect people both within the enterprise, that is workers and citizens of the society in which the enterprise operates. And when it comes to environmental externalities, the mediator between the source and recipient of externalities is the environment. Externalities are distinguished according to the means of accounting and the degree of influence on the subject of perception. The necessity of regulation of externalities through internalization and actions of the enterprise with the help of state and market instruments is substantiated. It is emphasized that internalization is the transformation of negative externalities into positive ones in terms of convergence of marginal costs and benefits of the enterprise to marginal social costs and utility.

scholarly journals How should we model property? Thinking with my critics

2017 ◽  
Vol 13 (4) ◽  
pp. 815-827 ◽  
Author(s):  
BENITO ARRUÑADA
Keyword(s):  
Property Rights ◽  
Transaction Costs ◽  
Main Argument ◽  
Model Property ◽  
Private Ordering ◽  
Single Exchange ◽  
Private And Public ◽  
Definition Of ◽  
Physical Dimensions

AbstractInspired by comments made by Allen (2017), Lueck (2017), Ménard (2017) and Smith (2017), this response clarifies and deepens the analysis in Arruñada (2017a). Its main argument is that to deal with the complexity of property we must abstract secondary elements, such as the physical dimensions of some types of assets, and focus on the interaction between transactions. This sequential-exchange framework captures the main problem of property in the current environment of impersonal markets. It also provides criteria to compare private and public ordering, as well as to organize public solutions that enable new forms of private ordering. The analysis applies the lessons in Coase (1960) to property by not only comparing realities but also maintaining his separate definition of property rights and transaction costs. However, it replaces his contractual, single-exchange, framework for one in which contracts interact, causing exchange externalities.

scholarly journals Estimates of European emissions of methyl chloroform using a Bayesian inversion method

2014 ◽  
Vol 14 (18) ◽  
pp. 9755-9770 ◽  
Author(s):  
M. Maione ◽  
F. Graziosi ◽  
J. Arduini ◽  
F. Furlani ◽  
U. Giostra ◽  
...  
Keyword(s):  
Point Source ◽  
High Frequency ◽  
Stratospheric Ozone ◽  
Montreal Protocol ◽  
Source Analysis ◽  
Bayesian Inversion ◽  
Inversion Method ◽  
Data Set ◽  
Methyl Chloroform

Abstract. Methyl chloroform (MCF) is a man-made chlorinated solvent contributing to the destruction of stratospheric ozone and is controlled under the "Montreal Protocol on Substances that Deplete the Ozone Layer" and its amendments, which called for its phase-out in 1996 in developed countries and 2015 in developing countries. Long-term, high-frequency observations of MCF carried out at three European sites show a constant decline in the background mixing ratios of MCF. However, we observe persistent non-negligible mixing ratio enhancements of MCF in pollution episodes, suggesting unexpectedly high ongoing emissions in Europe. In order to identify the source regions and to give an estimate of the magnitude of such emissions, we have used a Bayesian inversion method and a point source analysis, based on high-frequency long-term observations at the three European sites. The inversion identified southeastern France (SEF) as a region with enhanced MCF emissions. This estimate was confirmed by the point source analysis. We performed this analysis using an 11-year data set, from January 2002 to December 2012. Overall, emissions estimated for the European study domain decreased nearly exponentially from 1.1 Gg yr−1 in 2002 to 0.32 Gg yr−1 in 2012, of which the estimated emissions from the SEF region accounted for 0.49 Gg yr−1 in 2002 and 0.20 Gg yr−1 in 2012. The European estimates are a significant fraction of the total semi-hemisphere (30–90° N) emissions, contributing a minimum of 9.8% in 2004 and a maximum of 33.7% in 2011, of which on average 50% are from the SEF region. On the global scale, the SEF region is thus responsible for a minimum of 2.6% (in 2003) and a maximum of 10.3% (in 2009) of the global MCF emissions.

scholarly journals Institutional Impact of Forestry on the Economy

2021 ◽  
Vol 12 (4) ◽  
Author(s):  
Dmitry Litvin ◽  
Galina Davydova ◽  
Anastasia Biryukova
Keyword(s):  
Property Rights ◽  
Transaction Costs ◽  
Institutional Environment ◽  
Sustainable Growth ◽  
Forest Industry ◽  
Forest Sector ◽  
Institutional Impact ◽  
Institutional Relations ◽  
First Time ◽  
Russian Forest

The problems of the forest sector identified by many researchers are primarily related to the quality of institutions and the lack of effective institutional relations in the industry, according to the authors’ opinion. The results presented in the article, which prove the existence of a causal relationship between the qualitative characteristics of institutions and institutional relations and economic results, are shown for the first time in the case of the forest industry. In order to achieve the objective, the economic interrelations between forest industry entities are analyzed in the context of their institutional environment. It is revealed that the existing institutional structure of the industry supports the conflict of incentives between the owner (state) and the user (tenant) of forest land. The theoretical aspects of the specification of property rights, minimization of transaction costs and costs of contractual relations in the Russian forest industry to increase its economic efficiency are investigated. The transformation of Russian forest industry institutions should be based on the comparative advantages of existing institutions, economic models of successful forest management, objective institutional and economic indicators of sustainable growth, such as the specification of property rights and the minimization of specific transaction costs.

scholarly journals Stratospheric ozone interannual variability (1995–2011) as observed by Lidar and Satellite at Mauna Loa Observatory, HI and Table Mountain Facility, CA

2012 ◽  
Vol 12 (11) ◽  
pp. 30825-30867
Author(s):  
G. Kirgis ◽  
T. Leblanc ◽  
I. S. McDermid ◽  
T. D. Walsh
Keyword(s):  
Time Series ◽  
Solar Cycle ◽  
Interannual Variability ◽  
Southern Oscillation ◽  
Stratospheric Ozone ◽  
Montreal Protocol ◽  
Quasi Biennial Oscillation ◽  
Mauna Loa ◽  
Table Mountain ◽  
Biennial Oscillation

Abstract. The Jet Propulsion Laboratory (JPL) lidars, at the Mauna Loa Observatory, Hawaii (MLO, 19.5° N, 155.6° W) and the JPL Table Mountain Facility (TMF, California, 34.5° N, 117.7° W), have been measuring vertical profiles of stratospheric ozone routinely since the early 1990's and late-1980s respectively. Interannual variability of ozone above these two sites was investigated using a multi-linear regression analysis on the deseasonalized monthly mean lidar and satellite time-series at 1 km intervals between 20 and 45 km from January 1995 to April 2011, a period of low volcanic aerosol loading. Explanatory variables representing the 11-yr solar cycle, the El Niño Southern Oscillation, the Quasi-Biennial Oscillation, the Eliassen–Palm flux, and horizontal and vertical transport were used. A new proxy, the mid-latitude ozone depleting gas index, which shows a decrease with time as an outcome of the Montreal Protocol, was introduced and compared to the more commonly used linear trend method. The analysis also compares the lidar time-series and a merged time-series obtained from the space-borne stratospheric aerosol and gas experiment II, halogen occultation experiment, and Aura-microwave limb sounder instruments. The results from both lidar and satellite measurements are consistent with recent model simulations which propose changes in tropical upwelling. Additionally, at TMF the ozone depleting gas index explains as much variance as the Quasi-Biennial Oscillation in the upper stratosphere. Over the past 17 yr a diminishing downward trend in ozone was observed before 2000 and a net increase, and sign of ozone recovery, is observed after 2005. Our results which include dynamical proxies suggest possible coupling between horizontal transport and the 11-yr solar cycle response, although a dataset spanning a period longer than one solar cycle is needed to confirm this result.

Sign in / Sign up

Export Citation Format

Share Document