As China advances its overall program of economic development, many Chinese cities consistently suffer from unhealthy levels of air pollution. One of the groups most affected is children. This paper provides some quantification regarding the extent of various morbidity costs upon children in portions of urban China. Using China-based health-effects and valuation studies, the authors project, and value in dollar figures, the number of averted cases of childhood colds, bronchitis, asthma, and respiratory-related hospital visits resulting from a lowering of air pollution levels. The results indicate that these child morbidity benefits may be substantial, with a mid-range value of nearly $3.5 billion over the period 2002–2011.

Global tropical deforestation continues to be a critical environmental issue and nowhere in the world is the issue more pronounced than in Brazil. This paper examines the land-use choices of small-scale farmers in Ouro Preto do Oeste, Rondônia, Brazil and investigates how agricultural production impacts deforestation levels. The data used to explore these issues consist of a panel collected from 152 households in 1996 and 2000. Overall, the empirical models indicate that access to credit, wealth, lot size, product markets, and off-farm labor opportunities, largely influence deforestation and production decisions. Among other things, the results suggest that more sustainable production methods are unlikely to be adopted by a majority of households under current conditions because the production of milk has rapidly advanced due to its moderate labor requirements and existing market infrastructure. Households with greater levels of wealth have focused on milk while those with access to credit have focused on crops. Since the production of crops is largely influenced by access to credit, similar incentives may be proposed to support more sustainable production activities to help reduce deforestation.

This study explores the effects of land tenure institutions on land use and management using household date from cocoa growing areas of Ghana. Various land tenure institutions with different land rights coexist in our sites, such as allocated family land, inherited land, appropriated village land, and land received as gift. While tree planting and the decision to leave land fallow may be affected by land tenure status, there are no significant differences in labor allocation and revenue of both cocoa and food crops among parcels under different land tenure institutions. These results support the hypothesis that management incentives of cocoa fields, but not food crop fields, tend to be equalized due to the incentive-enhancing effects of granting secure land rights after efforts to plant cocoa trees are expended.

The present paper gives an overview of the theory of green national accounting. Three purposes of green national accounting (measurement of welfare equivalent income, sustainable income, or net social profit) and two measures (Green NNP and wealth equivalent income) are considered. Under the assumption of no exogenous technological progress, Green NNP is shown to equal wealth equivalent income if there is a constant interest rate or if consumption is constant. It is established as a general result that sustainable income [les ] wealth equivalent income [les ] welfare equivalent income, while Green NNP [les ] welfare equivalent income under no exogenous technological progress and a constant utility discount rate. Green NNP is shown to measure gross social profit rather than net social profit.

Our spatial analysis indicates that in 2000 over one third of the rural population in developing countries was located on less favored agricultural land and areas, which are constrained by biophysical conditions or poor market access. We examine whether these spatial distributions of rural population in 2000 influence subsequent changes in the rate of poverty from 2000 to 2012 in 83 developing countries. We find no evidence of a direct impact on changes in poverty, but there is a significant indirect impact via the elasticity of poverty reduction with respect to growth. If climate change leads to more people concentrated in these areas, or an increase in unfavorable agricultural regions, then the poverty-reducing impact of overall per capita income growth could be further weakened. Reducing poverty will require targeting rural populations in less favored lands and remote areas and encouraging out-migration.

We examine the implications of migration and insecure property rights to land use and deforestation in tropical frontier forests. Three forms of property rights risks are introduced to basic land-use forms. Illegal logging risk is associated with forest plantations, a land expropriation risk affects land in agriculture and plantation forestry, and illegal logging risks threaten native forest land. Public and private landowners can reduce these risks by employing costly enforcement effort. We show how that migration, expropriation, and illegal logging risks lead to deforestation by promoting agricultural expansion, and illegal logging. Higher public enforcement reduces illegal logging, but higher private enforcement may or may not reduce deforestation depending on migration pressures. Higher timber prices have an ambiguous effect on deforestation, but an increasing value of non-timber benefits decreases or leaves deforestation unchanged depending on the incentive structures of illegal loggers.

This study examines the trend in pesticide use in Brazil in the 1990s in the context of agroindustrialization and globalization (trade liberalization). It also seeks to document the environmental costs and human health hazard associated with pesticide use in Brazil. Results from time series data indicate that agricultural trade liberalization has led to increased pesticide use in Brazil, particularly in export crops. Results from cross-section municipality-level data point to higher incidence of pesticide use in municipalities with high income, higher levels of education, large-size farms, predominance of export crops, and with high prevalence of sharecropping. Finally, the study finds that Brazil's agricultural growth in the era of trade liberalization has been clouded by serious human health problems and environmental damage caused by pesticide use.

The paper argues that negotiation costs can prevent the international community from finding a new international climate agreement. To define a feasible way of facilitating the negotiation process, I analyze basic equity principles and their relationship to climate policy and economic development. Based on the most relevant principles, I propose a general synthetic rule for burden sharing in international climate policy. The rule avoids complexity and comprises both egalitarian and cost-sharing aspects, which appears to be crucial for achieving a climate agreement. Carbon budgets for the different countries are calculated under different parameter assumptions.

Casual observation suggests that many households in Moscow boil water, settle water in pans for some periods (e.g., overnight) before consuming, filter water, and buy bottled water. To date, there has been little empirical analysis of such avoidance behavior. Based on a recently completed survey of 615 households in Moscow, this paper investigates the types and amounts of avoidance measures that are used by households in Moscow to adjust drinking water quality. Survey results show that this is clearly the case: over 88 per cent of the sample boil water regularly due to concerns about water quality; 23 per cent filter water regularly; over 30 per cent settle water regularly; and about 13 per cent buy bottled water regularly. On the other hand, residents are generally content with their cold water supply and quality of delivery. Based on a microeconomic model of household avoidance behavior, logit regression results show how avoidance decisions relate to income, opinions of water quality, and location in the city. It is expected that this analysis from Moscow can also be used as a guide for future studies in other cities in Russia to evaluate opinions of quality, avoidance measures, and citizens' willingness to support public infrastructure projects designed to improve water supply.

This paper examines the causes of agricultural land expansion and deforestation in Tanzania. In the theoretical section, two different—and partly contradicting—sets of hypotheses are outlined. These are based on a subsistence approach, emphasising the food or income requirements of farm households, and a market approach, focussing on the relative profitability of agriculture. The statistical analysis shows that increased agricultural output prices, in particular for annual crops, is a major factor behind agricultural expansion. An increase of 1 per cent in output prices leads to about 1 per cent increase in agricultural area. Other factors such as input prices, technology and economic growth are tested and discussed, but the conclusions are less robust. The controversial role of population growth in explaining deforestation is addressed. Generally the results lend support to the market rather than the subsistence approach. JEL classification code: Q12, Q23, C23

This paper examines whether the stochastic convergence hypothesis of per capita carbon dioxide (CO2) emissions is supported in countries with the same level of development – that is, are shocks to relative per capita CO2 emissions temporary in industrialized countries? We respond to this question by utilizing the recently developed Lagrange Multiplier (LM) unit root test that endogenously determines structural breaks in level and trend as proposed by Lee and Strazicich (2003, 2004). Our empirical findings provide significant evidence that relative per capita CO2 emissions for 21 OECD countries stochastically converge when we control for breaks in the period 1960–2000. Structural breaks are identified in each country, and overall we find that most breakpoints occur around the two energy crises and in the 1990s. The robust test clearly also indicates that most original per capita CO2 emissions and average series are stationary.

In future agreements to cut greenhouse gases, a Chinese commitment will probably be essential. Committing for China is easier if the cost is low and the benefit to China is high. Using a new CGE-model of the Chinese economy we discuss the cost and benefit to China of taking on a climate commitment. We argue that a climate commitment gives significant ancillary benefits to China since associated particle and NOx-reductions improve public health and increase agricultural yields. The model of impact on agricultural yields is a novel feature of CGE-models. Comparing benefits to economic costs produces striking results. We find that China may reduce its CO2-emissions by 17.5 per cent without suffering a welfare loss. Half of the benefit originates in the novel agricultural model. We also discuss the distributional impact of a climate commitment. In general the distributional impact is not averse.

Many developing economies are faced with growing populations and deteriorating natural resources. It is often argued that economic growth will arrest these trends via cleaner technology and social change accompanied by reduced birth rates. Two questions arise: (1) What general economic, demographic, and ecological conditions favor this scenario? and (2) What adjustments, technological, demographic, or ecological, are more important in realizing this scenario? I address these questions using a two-sector growth model which includes human demographics and a renewable resource base. Using powerful numerical bifurcation techniques and rescaling arguments, I obtain the following general results. If the regeneration rate of the renewable resource base is slow relative to the rate of economic growth, population overshoot and resource collapse is more likely. Demographic adjustments are more important than technological adjustments in avoiding renewable resource degradation. Several related results are presented that support these general findings.

The demand for environmental quality is often presumed to be low in developing countries due to poverty. Less attention has been paid to the possibility that lack of awareness about adverse health effects of environmental pollution could also keep the demand low. We use a household survey from urban India to estimate the effects of schooling, exposure to mass media, and other measures of awareness on home water purification. We find that these measures of awareness have statistically significant effects on home purification and, therefore, on willingness to pay. These effects are similar in magnitude to the wealth effects. Average costs of different home purification methods are used to generate partial estimates of willingness to pay for better drinking water quality.

Decentralization and people's participation have been key features of government environmental policy since the 1990s. In Madagascar, the policy of Secured Local Management of Natural Resources, known as the GELOSE act, has created a framework for the transfer of rights from central government to local communities. This article analyses the practical implementation of this policy by focusing on the nature of the rights transferred and on the nature of the contracts and incentives developed. The Aghion and Tirole model for allocation of formal and real authority in an organization is used to shed light on the contractual definition process and on the trade-offs between giving responsibilities to local communities and losing control over natural resources management. It is shown that a congruence of interests between the parties is crucial for effective delegation of authority to local communities and that this congruence may emerge in relation to the transfer of exclusion rights.

Using the case of shade-grown coffee, this paper examines the market impacts of ‘eco-labels’ for credence attributes. First, the Mattoo and Singh (1994) test is conducted for the case of shade-grown coffee to investigate the market impacts of a shade label. This analysis in section 2 shows that a shade label could ‘pass’ the test, but the market impacts are likely to be minor. Section 2 also shows how to use estimates of supply, potential demand, and price elasticities of demand and supply to predict eco-label premiums in the post-label equilibrium. And second, given the importance of consumer demands for eco-label impacts, and since the theoretical foundations of demand for eco-labeled items are not well developed in the literature, Section 3 takes a closer look at the microeconomics of labels and consumer demand. A nested constant-elasticity-of-substitution preference structure is used to derive theoretically consistent Marshallian demands for shade and non-shade coffee. A numerical simulation shows how relative prices and consumer preferences for the credence attribute and variety are both important factors in demand creation of labeled items.

A differential game model is developed to compare incentives for wastewater pollution abatement of upstream and downstream countries under cooperative and noncooperative strategies. The Tijuana River is the empirical setting of water flow from south (Mexico) to north (US) where pollution stock accumulates. Asymmetry between the upstream and downstream countries for costs, damages, and emissions influences incentives to abate pollution. Cost minimization is achieved as the US can finance pollution abatement in Mexico. Game sharing rules (Shapley value, Chander–Tulkens rule, Helsinki rule, egalitarian rule) are analyzed. Financial transfers from two North American Free Trade Agreement (NAFTA) institutions are examined. In most cases of cooperation, transfer payments are positive from downstream to upstream for reductions in flow and stock of pollution. Transfer size varies according to the rule and sensitivity analysis of changes in abatement costs and damages. The two institutions follow a variation of the Helsinki rule.

Improving technical efficiency in agriculture can play an important role in meeting present and future demands for agricultural products, at the same time enhancing the long-term sustainability of land and water use. This paper examines the impact of household perceptions of land tenure security on technical efficiency using detailed household-level data collected in Minle County in northwest China. The authors find that the (perceived) tenure security provided by land certificates encourages part-time farming with relatively low technical efficiency. The renting out of land by households with migrant members can only partly make up for this negative effect, because land rental markets are thin and highly fragmented. Therefore, the provision of land certificates to rural households has a negative impact on technical efficiency. For tenure security provided by the expected absence of land reallocations in the near future, on the other hand, the authors find that it reduces temporary migration and thereby contributes to higher technical efficiency.

Wetlands provide a variety of important environmental services including flood control, wildlife habitat, waste treatment, and recreational opportunities. Because most of these services are public goods, the value of wetland preservation cannot be directly obtained from market prices but may be estimated using revealed-preference or stated-preference methods. We estimate the value to local residents of protecting the Kuantu wetland in Taiwan using contingent valuation. Estimates are sensitive to question format, with estimates using a double-bounded dichotomous-choice format about three times larger than estimates using a single open-ended question. Using the open-ended format, the estimated annual mean household willingness to pay to preserve the Kuantu wetland is about US$21. Using the dichotomous-choice questions, the value is about US$65. These estimates suggest the total present-value willingness to pay to preserve Kuantu wetland is about US$200 million to US$1.2 billion (discounted at 5–10%).

We use aggregate data to estimate supply, price, land-use, and greenhouse gas impacts of genetically engineered (GE) seed adoption due both to increased yield per hectare (intensive margin) and increased planted area (extensive margin). An adoption model with profitability and risk considerations distinguishes between the two margins, where the intensive margin results from direct ‘gene’ impacts and higher complimentary input use, and the extensive margin reflects the growing range of lands that become profitable with the GE technology. We identify yield increases from cross-country time series variation in GE adoption share within the main GE crops – cotton, corn and soybeans. We find that GE increased yields 34 per cent for cotton, 12 per cent for corn and 3 per cent for soybeans. We then estimate the quantity of extensive margin lands from year-to-year changes in traditional and GE planted area. If all production on the extensive margin is attributed to GE technology, the supply effect of GE increases from 5 per cent to 12 per cent for corn, 15 per cent to 20 per cent for cotton, and 2 per cent to 40 per cent for soybeans, generating significant downward pressure on prices. Finally, we compute ‘saved’ lands and greenhouse gases as the difference between observed hectarage per crop and counterfactual hectarage needed to generate the same output without the yield boost from GE. We find that altogether, GE saved 13 million hectares of land from conversion to agriculture in 2010, and averted emissions are equivalent to roughly one-eighth of the annual emissions from automobiles in the US.