Welfare Impacts of Ocean Acidification: An Integrated Assessment Model of the US Mollusk Fishery
AbstractAs atmospheric carbon dioxide (CO2) concentrations increase, the world’s oceans are absorbing CO2 at a faster rate than at any time in the past 800,000 years. While this reduces the amount of the most prevalent greenhouse gas in the atmosphere it also causes changes in seawater chemistry, collectively known as ocean acidification. One of the known ecological impacts of ocean acidification is a reduced ability of some marine calcifiers to form shells and skeletons. Mollusks and reef building corals are particularly vulnerable. Understanding how these biophysical impacts affect social welfare is a critical step in crafting and evaluating policies that reduce CO2 emissions. There is an extensive body of literature estimating the economic impacts of climate change but very little research has been done on how ocean acidification could affect social welfare. This paper proposes an integrated biogeochemical-economic model to estimate the social welfare impacts of ocean acidification in the US mollusk fishery. To demonstrate the model two pathways for global greenhouse gas emissions are compared: a baseline path and a policy path in which CO2 and other greenhouse gas emissions are reduced. These pathways provide input for integrated earth systems models, generating forecasts of changes to sea water chemistry and mollusk production. A two-stage demand system estimates the utility function parameters needed to calculate compensating variation for avoided increases in the prices of oysters, scallops, clams and mussels. The model estimates annual compensating variation for the mitigation path relative to baseline conditions.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Center for Environmental Economics, U.S. Environmental Protection Agency in its series NCEE Working Paper Series with number 201106.
Length: 35 pages
Date of creation: Dec 2011
Date of revision: Dec 2011
Contact details of provider:
Postal: 1200 Pennsylvania Ave., N.W., Washington, D.C. 20460
Web page: http://yosemite.epa.gov/ee/epa/eed.nsf/webpages/homepage
More information through EDIRC
ocean acidification; integrated assessment model; demand system estimation;
Find related papers by JEL classification:
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
- Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bockstael, Nancy E & McConnell, Kenneth E, 1983. "Welfare Measurement in the Household Production Framework," American Economic Review, American Economic Association, vol. 73(4), pages 806-14, September.
- Daiju Narita & Katrin Rehdanz & Richard S.J. Tol, 2011.
"Economic Costs of Ocean Acidification: A Look into the Impacts on Shellfish Production,"
Kiel Working Papers
1710, Kiel Institute for the World Economy.
- Narita, Daiju & Rehdanz, Katrin & Tol, Richard S. J., 2011. "Economic Costs of Ocean Acidification: A Look into the Impacts on Shellfish Production," Papers WP391, Economic and Social Research Institute (ESRI).
- Muellbauer, John, 1976. "Community Preferences and the Representative Consumer," Econometrica, Econometric Society, vol. 44(5), pages 979-99, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Cynthia Morgan).
If references are entirely missing, you can add them using this form.