I consider the influence of foreign environmental policy on domestic manufacturing activity using theory and empirics. A tractable three-country spatial model yields a theory of locational com- parative advantage in the production of pollution-intensive manufactured goods: greater market access to countries with stringent environmental policy encourages output in the polluting sector. Operationalizing the model empirically, I find robust evidence that high market access to countries with stringent environmental policy increases manufacturing value added. Both the theoretical and empirical analyses suggest that estimates of the Pollution Haven Effect that ignore third country environmental policy - yet make the stable unit treatment value assumption - can be misleading. Chapter Two We investigate the impact of short-term weather and long-term climate on self-reported life satisfaction using panel data. We find robust evidence that day-to-day weather variation impacts life satisfaction by a similar magnitude to acquiring a mild disability. Utilizing two sources of variation in the cognitive complexity of satisfaction questions, we present evidence that weather bias arises because of the cognitive challenge of reporting life satisfaction. Consistent with past studies, we detect a relationship between long-term climate and life satisfaction without individual fixed effects. This relationship is not robust to individual fixed effects, suggesting climate does not directly influence life satisfaction. Chapter Three This chapter considers the related policy challenges of deindustrialisation and 'leakage' which can arise when environmental regulation is differentiated across regions. A dynamic two-region 'New Economic Geography' (NEG) model is adopted in which agglomeration forces may make firms tolerant of regulatory disadvantage. Each region ratifies an international environmental agreement (IEA) requiring it to tax transboundary pollution created by local firms. In contrast to previous NEG studies, the model adopted is considerably more tractable, enabling comparative static analysis to be conducted analytically rather than through computer simulation. The model is extended to consider the relationship between the prescribed tax rates and deindustrialisation caused by the relocation of firms. Firm relocation in response to a given tax differential depends crucially on trade costs and the initial location (configuration) of industry. For some industry configurations, agglomeration forces are strong and a set of tax differentials exist which cause no international relocation of polluting firms. For other initial industry configurations in which agglomeration forces are weaker, the same set of tax differentials may cause complete inter-national relocation to the less stringently regulated region. Trade liberalization can actually make industry less likely to relocate in response to a regulatory disadvantage. The model is further extended to consider the issue of carbon leakage, which arises in the regulation of greenhouse gas (GHG) emissions. For relatively low tax differentials, agglomeration forces create rents which tend to anchor industry in the higher taxing region, avoiding carbon leakage. If the tax differential is too great, however, agglomeration forces cause all firms to relocate to the lower taxing region where they optimally emit more GHGs. Environmental outcomes may therefore be improved by reducing the tax rate in the higher taxing region in order to discourage industry relocation. When industry is diversified between regions, firms respond to higher (lower) relative domestic taxes by increasing (decreasing) output and polluting more (less).

In the first chapter, "Does the Stage of Development Matter for Infrastructure Payoffs?”, I consider infrastructure as a channel for economic development. I address the question of whether the impact of infrastructure varies according to the stage of development of a country. I answer this question through an innovative methodology exploiting the information included in papers that provide estimates of infrastructure payoffs. I use a logit model whose dependent variable indicates whether these estimates are positively significant. To account for the variation of this dependent variable, I consider the sample characteristics of estimates. One of these characteristics is the stage of development of the countries included in the samples. Specifically, I use the weight of each of four income categories in the sample as an explanatory variable.<p><p>The second chapter, "Climate Change Mitigation in the Presence of Technology Spillovers", explores the implications of an increase in clean technology spillovers between developed and developing countries. I build a 2-stage 2-country game of abatements in which players are linked with technology spillovers. The two countries are asymmetric in their technology endowment. Country 1 - the developed country - is the only one able to invest in technology that lowers abatement costs. Country 2 - the developing country - captures only part of the technology provided by country 1.<p><p>The third chapter, "Threshold Effects in Self-Enforcing International Environmental Agreements" is co-written with Renaud Foucart. In this chapter, we address the stability of self-enforcing International Environmental Agreements (IEAs) with the presence of a threshold of irreversible climate change. Climate scientists recognize the existence of human-induced abrupt climate changes that are likely to occur when the climate system crosses some threshold. We show that taking into account these threshold effects - when identified with enough accuracy - allows for the existence of more ambitious agreements than those predicted by the traditional literature on IEAs. When considering abrupt irreversible damage, the contribution of any country that helps prevent the world from such a catastrophe is very large. Consequently, a high number of signatories that could potentially prevent the climate system from crossing the threshold could form a self-enforcing agreement. / Doctorat en Sciences économiques et de gestion / info:eu-repo/semantics/nonPublished

This dissertation contains three papers that contribute to the theory of international trade, political economy, and trade and environmental protection. The first paper develops a model to examine the costs and benefits of trade in differentiated products. It focuses on how relative ability in exporting variety between two countries determines economic welfare in both countries. The results shed light on the question of why export-promotion programs in many countries aim not only to help their existing exporting firms export more, but also to help domestic firms become new exporting firms or enter new foreign markets. The paper also discusses the possibility of over-provision of export variety and raises some questions regarding the benefits of trade in differentiated products. The second paper suggests some coherent explanations for tariff reductions and substitution of non-tariff barriers for tariffs, taking into account both organized special interests and unorganized consumer interests. It focuses on how the presence of informed consumers affects the political equilibrium choice of trade policy - both the level of protection and the policy instrument. The paper identifies three effects that interact with each other as an incumbent government substitutes a NTB for a tariff and finds, among other things, that an increase in foreign competition will not cause the government to substitute NTBs for tariffs but a rise in the government's valuation of political contributions might. The third paper shows that small or financially constrained environmentalist groups can compete indirectly through changing public preferences over environmental quality, though they may be in a weak position relative to polluting industries in the direct competition for political influence. It is also shown, however, that in a small open economy where the output price is exogenously determined, the value of domestic persuasion falls and government environmental policies will be determined by direct political competition. Moreover, direct competition for political influence in the open economy becomes more intense because positions of different groups on environmental policy become more extreme. The analysis also shows that moving to free trade would increase a country's environmental protection as long as the median voter were not very 'green'. / Arts, Faculty of / Vancouver School of Economics / Graduate

Rapid, human-forced climate change as a result of greenhouse gases is threatening the fabric of human civilisation itself. It is clear that we need to alter our development and poorer countries will need to develop while limiting their emissions, but it is not clear what sustainable development would entail. Climate change policy solutions have pivoted on carbon trading, under the auspices of the Clean Development Mechanism (CDM), but this too has failed to limit growth in carbon emissions. This report looks at the operations of the CDM in South Africa as a source of climate finance meant to facilitate sustainable development. Though South Africa has emphasised its commitment towards a low-carbon transition, in practice its national planners seek to preserve energy-intensive mineral and industrial sectors. This research draws on both primary and secondary documents as well as interviews with carbon professionals to conclude that CDM projects have played a limited role in South Africa, but has tended to reproduce the existing minerals and energy complex within the country.

As a result of rapid product development, the product life cycle has become shorter, and thus the amount of waste from discarded industrial products has risen dramatically. An awareness of the world???s environmental problems has stimulated researchers to explore the opportunities to reuse, recycle and remanufacture end-of-life products. Disassembly is a systematic approach to separating products into components or subassemblies in order to facilitate recovery of components or materials. However, the full disassembly of a product tends to be unproductive due to technical and cost constraints and product conditions after usage. Therefore, selective disassembly has been introduced as a more practical approach, where only a limited number of disassembly paths that lead to selected parts with recovering potential are considered. This research focuses on the development of a selective disassembly methodology by reversing an assembly sequencing approach. The methodology uses a step-by-step approach to generate a disassembly sequence diagram. This involves listing all the parts within the product, generating a liaison diagram to illustrate part relationships and then establishing precedence rules describing prerequisite actions for each liaison. This is followed by segregating disassembly paths that lead to the removal of selected parts or subassemblies. Then a winnowing process is applied to these paths to eliminate invalid disassembly states and transitions. The last step is to select the optimal disassembly path by using the time requirement as the main selection criterion. In order to shorten the time for carrying out the sequencing process, a javabased program that is capable of performing the first three steps has been created. The program requires three basic inputs in forms of precedence rules, and user-required part (s) and disassembly rules, prescribing which liaison (s) should be done subsequent to a particular liaison. The viability of the methodology and the program is proved through seven case studies conducted on a fishing reel, a single-hole punch, a kettle, an entire washing machine and three washing machine subassemblies. The application of the program allows the users to determine an optimal disassembly sequence in a very short time and with only basic product information as the input.

Government is constantly attempting to balance the competing interests within society, and is itself active in a variety of different roles. The conflict between these roles becomes particularly clear when an attempt is made to implement a "regulatory market" - that is a market that exists only because of government action- such as an electricity or environmental market - to implement some policy objective, since it is the nature of markets to candidly reveal weaknesses that in a non-market management framework may have remained hidden for some time. This thesis examines the difficulty that government has in setting market rules that implement an efficient market design for such markets. After examining the history and development of the Australian Electricity Industry market reform process, we examine more closely some of the electricity related environmental markets developed specifically to drive a policy outcome in Australia -- in particular the Australian Mandatory Renewable Energy Target Market (MRET) and the New South Wales Greenhouse Gas Abatement Scheme. By comparing these environmental markets with established financial markets, and using the techniques of experimental economics, we show that these environmental markets have significant inefficiencies in their design. We argue that these come about because lessons from the financial markets have not be learned by those implementing environmental markets, that stakeholders are lobbying for market design characteristics that are not in fact in their own best interests, and that governments struggle to manage the divergent pressure upon them. For example, in MRET we show experimentally that one of the market design characteristics most fought for by generators (the ability to create renewable energy certificates from qualifying energy without declaring the certificates to the market until a later time of the creator's choosing) in fact leads to market volatility, and ultimately inefficiently low prices. We also examine the impact on the overall MRET market of simple rule changes upon market performance. Key conclusions of this thesis are that it is more difficult than has been appreciated to successfully use a market to implement public policy and that important lessons have not yet been learned from the existing financial markets.

Government is constantly attempting to balance the competing interests within society, and is itself active in a variety of different roles. The conflict between these roles becomes particularly clear when an attempt is made to implement a "regulatory market" - that is a market that exists only because of government action- such as an electricity or environmental market - to implement some policy objective, since it is the nature of markets to candidly reveal weaknesses that in a non-market management framework may have remained hidden for some time. This thesis examines the difficulty that government has in setting market rules that implement an efficient market design for such markets. After examining the history and development of the Australian Electricity Industry market reform process, we examine more closely some of the electricity related environmental markets developed specifically to drive a policy outcome in Australia -- in particular the Australian Mandatory Renewable Energy Target Market (MRET) and the New South Wales Greenhouse Gas Abatement Scheme. By comparing these environmental markets with established financial markets, and using the techniques of experimental economics, we show that these environmental markets have significant inefficiencies in their design. We argue that these come about because lessons from the financial markets have not be learned by those implementing environmental markets, that stakeholders are lobbying for market design characteristics that are not in fact in their own best interests, and that governments struggle to manage the divergent pressure upon them. For example, in MRET we show experimentally that one of the market design characteristics most fought for by generators (the ability to create renewable energy certificates from qualifying energy without declaring the certificates to the market until a later time of the creator's choosing) in fact leads to market volatility, and ultimately inefficiently low prices. We also examine the impact on the overall MRET market of simple rule changes upon market performance. Key conclusions of this thesis are that it is more difficult than has been appreciated to successfully use a market to implement public policy and that important lessons have not yet been learned from the existing financial markets.

As a result of rapid product development, the product life cycle has become shorter, and thus the amount of waste from discarded industrial products has risen dramatically. An awareness of the world???s environmental problems has stimulated researchers to explore the opportunities to reuse, recycle and remanufacture end-of-life products. Disassembly is a systematic approach to separating products into components or subassemblies in order to facilitate recovery of components or materials. However, the full disassembly of a product tends to be unproductive due to technical and cost constraints and product conditions after usage. Therefore, selective disassembly has been introduced as a more practical approach, where only a limited number of disassembly paths that lead to selected parts with recovering potential are considered. This research focuses on the development of a selective disassembly methodology by reversing an assembly sequencing approach. The methodology uses a step-by-step approach to generate a disassembly sequence diagram. This involves listing all the parts within the product, generating a liaison diagram to illustrate part relationships and then establishing precedence rules describing prerequisite actions for each liaison. This is followed by segregating disassembly paths that lead to the removal of selected parts or subassemblies. Then a winnowing process is applied to these paths to eliminate invalid disassembly states and transitions. The last step is to select the optimal disassembly path by using the time requirement as the main selection criterion. In order to shorten the time for carrying out the sequencing process, a javabased program that is capable of performing the first three steps has been created. The program requires three basic inputs in forms of precedence rules, and user-required part (s) and disassembly rules, prescribing which liaison (s) should be done subsequent to a particular liaison. The viability of the methodology and the program is proved through seven case studies conducted on a fishing reel, a single-hole punch, a kettle, an entire washing machine and three washing machine subassemblies. The application of the program allows the users to determine an optimal disassembly sequence in a very short time and with only basic product information as the input.

This thesis is concerned with the conceptual foundations of environmental law and policy in the Great Lakes basin, the world's largest freshwater ecosystem. The Great Lakes regime is now widely recognized as one of the most advanced international environmental management regimes in existence. Over the past two decades, toxic contamination has emerged as a highly pressing ecological issue in the Great Lakes basin. In Canada and the United States, the ecosystem approach, a comprehensive and integrated approach to environmental management, has been adopted both bilaterally and domestically in the Great Lakes' complex environmental policy framework to guide the protection of ecological integrity. There has been extensive discussion of the ecosystem approach, particularly from scientific and managerial perspectives; however, the economic content of the concept has been largely neglected, despite the importance of considering all relevant perspectives in the development of law and policy. This thesis is divided into five chapters. After discussing in Chapter 1 the ecological and institutional contexts and methodological issues of the analysis, this thesis defends, in Chapter 2, the view that economic theory has relevance to issues of environmental law and policy. In addition to highlighting the main contours of welfare and environmental economic theory, a main conclusion, and an essential premise upon which the analysis proceeds, is that economics remains a useful analytical approach to environmental issues, despite some important criticisms. Subsequently, in Chapter 3, the analysis shifts to an examination of four bilateral and domestic Great Lakes instruments that form the core of Great Lakes toxic pollution policy: (i) the Great Lakes Water Quality Agreement; (ii) the Great Lakes Binational Toxics Strategy; (iii) the Canada-Ontario Agreement; and (iv) the Final Water Quality Guidance for the Great Lakes System. After outlining key principles underpinning each instrument, the thesis underscores common themes running through the collective policy framework. The ecosystem approach constitutes a unifying concept in this framework. The ecosystem approach is examined from an economic perspective in Chapter 4. After identifying key elements of the ecosystem approach, this chapter highlights important parallels between fundamental welfare and environmental economic notions. One main conclusion is that economic concepts and approaches, such as environmental valuation, externalities, and self-interest, form an integral part of the ecosystem approach. Finally, Chapter 5 identifies some directions for further research. Given that, as the thesis seeks to establish, economic theory constitutes an important, albeit not sole, perspective on the ecosystem approach, a key challenge will be to facilitate interdisciplinary analysis and cooperation leading to effective operationalization of the concept.

The Environmental Justice Networking Forum’s first national conference had three major objectives: to constitute the organisation on a national basis; to make policy recommendations regarding the implementation of the RDP both for submission to government and as a guide to action by EJNFparticipants; to build and disseminate the workof thelDRC/ANC/ COSATU/ SACP/ SANCO International Mission on Environmental Policy (referred to here as the Mission). EJNF was in itiated at the Earthlife Africa International Environment Conference in 1992 at Pietermaritzburg. That conference mandated an interim national steering committee to guide a process of establishing an organised voice within civil society for environmental justice. It stipulated that the organisation should be formed on a regional basis leading up to the national constitution of EJNF at a national conference. The EJNF conference is thus the culmination of a two year process. During that time, meetings were held to establish EJNF in six regions: Gauteng, Northern Transvaal, Western Cape, Eastern Cape, KwaZulu- Natal and OFS. Participating organisations include women’s, rural, youth, religious and environmental organisations, unions, civics and service NGOs. Each region sent delegations to the national conference. Two other regions, Eastern Transvaal and Northern Cape, also sent delegations which will form the focus groups for establishing EJNF in those regions. Regional EJNF participant organisations also elected members to the national steering committee. They took office at the constitutive conference. The minutes of the constitutive session of the conference are not included here but are available from the EJNF national office. The EJNF delegates were joined by a number of guest delegates for the conference on Greening the RDP. They included members of national organisations which represent or work with the constitutuencies which EJNF is developing and researchers working in the sectors covered by the conference. Government was represented by Ministers Kader Asmal (Water Affairs) and Derek Hanekom (Land Affairs), by provincial MECs, by members of standing committees in parliament and provincial legislatures andby ministry or department officials.