IDEAS home Printed from https://ideas.repec.org/p/hal/wpceem/halshs-02141789.html
   My bibliography  Save this paper

Can harmful events be another source of environmental traps?

Author

Listed:
  • Can Askan Mavi

    (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - INRA - Institut National de la Recherche Agronomique - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement)

Abstract

his paper aims to present a new explanation for environmental traps, by the presence of endogenous hazard rate. We show that adaptation and mitigation policies have different effects on the occurrence of environmental traps: the former could cause an environmental trap, whereas the latter could help society avoid such a trap, since it decreases the harmful event probability. As a result, we present a new trade-off between adaptation and mitigation policies other than the usual dynamic trade-off highlighted in many studies, which is crucial for developing countries. Contrary to the literature, when the economy is in a trap, the economy at the high environmental quality equilibrium tends to be more conservative for resource exploitation than the low environmental quality equilibrium economy, which implies a heterogeneous reaction against the endogenous hazard rate.

Suggested Citation

  • Can Askan Mavi, 2019. "Can harmful events be another source of environmental traps?," CEE-M Working Papers halshs-02141789, CEE-M, Universtiy of Montpellier, CNRS, INRA, Montpellier SupAgro.
  • Handle: RePEc:hal:wpceem:halshs-02141789
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-02141789
    as

    Download full text from publisher

    File URL: https://halshs.archives-ouvertes.fr/halshs-02141789/document
    Download Restriction: no

    References listed on IDEAS

    as
    1. Polasky, Stephen & de Zeeuw, Aart & Wagener, Florian, 2011. "Optimal management with potential regime shifts," Journal of Environmental Economics and Management, Elsevier, vol. 62(2), pages 229-240, September.
    2. Schumacher, Ingmar, 2009. "Endogenous discounting via wealth, twin-peaks and the role of technology," Economics Letters, Elsevier, vol. 103(2), pages 78-80, May.
    3. Skiba, A K, 1978. "Optimal Growth with a Convex-Concave Production Function," Econometrica, Econometric Society, vol. 46(3), pages 527-539, May.
    4. Alain Ayong Le Kama & Aude Pommeret, 2016. "Supplementing domestic mitigation and adaptation with emissions reduction abroad to face climate change," Post-Print hal-01386053, HAL.
    5. Bommier, Antoine & Lanz, Bruno & Zuber, Stéphane, 2015. "Models-as-usual for unusual risks? On the value of catastrophic climate change," Journal of Environmental Economics and Management, Elsevier, vol. 74(C), pages 1-22.
    6. Wirl, Franz, 2004. "Sustainable growth, renewable resources and pollution: Thresholds and cycles," Journal of Economic Dynamics and Control, Elsevier, vol. 28(6), pages 1149-1157, March.
    7. Ren, Bijie & Polasky, Stephen, 2014. "The optimal management of renewable resources under the risk of potential regime shift," Journal of Economic Dynamics and Control, Elsevier, vol. 40(C), pages 195-212.
    8. Ian W. R. Martin & Robert S. Pindyck, 2015. "Averting Catastrophes: The Strange Economics of Scylla and Charybdis," American Economic Review, American Economic Association, vol. 105(10), pages 2947-2985, October.
    9. Wagener, F. O. O., 2003. "Skiba points and heteroclinic bifurcations, with applications to the shallow lake system," Journal of Economic Dynamics and Control, Elsevier, vol. 27(9), pages 1533-1561, July.
    10. Akao, Ken-Ichi & Sakamoto, Hiroaki, 2018. "A theory of disasters and long-run growth," Journal of Economic Dynamics and Control, Elsevier, vol. 95(C), pages 89-109.
    11. Le Kama, Alain Ayong & Schubert, Katheline, 2007. "A Note On The Consequences Of An Endogenous Discounting Depending On The Environmental Quality," Macroeconomic Dynamics, Cambridge University Press, vol. 11(2), pages 272-289, April.
    12. de Zeeuw, Aart & Zemel, Amos, 2012. "Regime shifts and uncertainty in pollution control," Journal of Economic Dynamics and Control, Elsevier, vol. 36(7), pages 939-950.
    13. Zemel, Amos, 2015. "Adaptation, mitigation and risk: An analytic approach," Journal of Economic Dynamics and Control, Elsevier, vol. 51(C), pages 133-147.
    14. Crépin, Anne-Sophie & Biggs, Reinette & Polasky, Stephen & Troell, Max & de Zeeuw, Aart, 2012. "Regime shifts and management," Ecological Economics, Elsevier, vol. 84(C), pages 15-22.
    15. Tsur, Yacov & Zemel, Amos, 2016. "Policy tradeoffs under risk of abrupt climate change," Journal of Economic Behavior & Organization, Elsevier, vol. 132(PB), pages 46-55.
    16. Schumacher, Ingmar, 2011. "Endogenous discounting and the domain of the felicity function," Economic Modelling, Elsevier, vol. 28(1-2), pages 574-581, January.
    17. van der Ploeg, Frederick, 2014. "Abrupt positive feedback and the social cost of carbon," European Economic Review, Elsevier, vol. 67(C), pages 28-41.
    18. Chimeli, Ariaster B. & Braden, John B., 2005. "Total factor productivity and the environmental Kuznets curve," Journal of Environmental Economics and Management, Elsevier, vol. 49(2), pages 366-380, March.
    19. Palivos, Theodore, 1995. "Endogenous fertility, multiple growth paths, and economic convergence," Journal of Economic Dynamics and Control, Elsevier, vol. 19(8), pages 1489-1510, November.
    20. Yacov Tsur & Amos Zemel, 2016. "The Management of Fragile Resources: A Long Term Perspective," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 65(3), pages 639-655, November.
    21. Russell Davidson & Richard Harris, 1981. "Non-Convexities in Continuous Time Investment Theory," Review of Economic Studies, Oxford University Press, vol. 48(2), pages 235-253.
    22. Das, Mausumi, 2003. "Optimal growth with decreasing marginal impatience," Journal of Economic Dynamics and Control, Elsevier, vol. 27(10), pages 1881-1898, August.
    23. Drugeon, Jean-Pierre, 1996. "Impatience and long-run growth," Journal of Economic Dynamics and Control, Elsevier, vol. 20(1-3), pages 281-313.
    24. Clarke, Harry R. & Reed, William J., 1994. "Consumption/pollution tradeoffs in an environment vulnerable to pollution-related catastrophic collapse," Journal of Economic Dynamics and Control, Elsevier, vol. 18(5), pages 991-1010, September.
    25. Cropper, M. L., 1976. "Regulating activities with catastrophic environmental effects," Journal of Environmental Economics and Management, Elsevier, vol. 3(1), pages 1-15, June.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Environmental damage; Harmful event; Occurrence hazard; Tipping points; Multiple equilibria; Environmental traps; Adaptation; Mitigation;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:wpceem:halshs-02141789. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Laurent Garnier). General contact details of provider: http://edirc.repec.org/data/lamplfr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.