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Environmental Economics Hendrik Wolff [email protected]

Environmental Economics Hendrik Wolff [email protected]

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Page 1: Environmental Economics Hendrik Wolff hgwolff@u.washington.edu

Environmental Economics

Hendrik Wolff

[email protected]

Page 2: Environmental Economics Hendrik Wolff hgwolff@u.washington.edu

What is EE?

• Brief Outline of “some” Environmental Problems– Population Growth– Fossil Fuel burning and Carbon Dioxide– Acid Rain and Sulfur Dioxide– Stratospheric Ozone Depletion

Page 3: Environmental Economics Hendrik Wolff hgwolff@u.washington.edu

State of the Environment

• Population Growth puts pressure on environmental resources

Page 4: Environmental Economics Hendrik Wolff hgwolff@u.washington.edu
Page 5: Environmental Economics Hendrik Wolff hgwolff@u.washington.edu

Ice Core Measures -- Vostoc in the Antarctica.

Page 6: Environmental Economics Hendrik Wolff hgwolff@u.washington.edu

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2012: atmospheric CO2 = 394ppm

http://www.350.org/

Page 10: Environmental Economics Hendrik Wolff hgwolff@u.washington.edu

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Present and Future Mean Temperature

Page 11: Environmental Economics Hendrik Wolff hgwolff@u.washington.edu

11San Francisco

Average Daily Temperature Distribution

RED:2090-2100Projected

A2 scenario from CCSM 3.0 in IPCC (2007)

BLUE:1960-90 Normals

Page 12: Environmental Economics Hendrik Wolff hgwolff@u.washington.edu

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Boston

San Francisco

Houston

Average Daily Temperature Distribution

RED:2090-2100Projected

A2 scenario from CCSM 3.0 in IPCC (2007)

BLUE:1960-90 Normals

Page 13: Environmental Economics Hendrik Wolff hgwolff@u.washington.edu

County Temperature Data

13

365

1

365

1

0 65

0 65

HDD = Annual Heating Degree Days = max ,

CDD = Annual Cooling Degree Days = max ,

dd

dd

T

T

Page 14: Environmental Economics Hendrik Wolff hgwolff@u.washington.edu

County Temperature Data

14

365

1

365

1

0 65

0 65

HDD = Annual Heating Degree Days = max ,

CDD = Annual Cooling Degree Days = max ,

dd

dd

T

T

Drawback:

• 1 day of 115 F & 4 days of 65 F 50 CDD

• 5 days of 75 F 50 CDD

Page 15: Environmental Economics Hendrik Wolff hgwolff@u.washington.edu

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Page 18: Environmental Economics Hendrik Wolff hgwolff@u.washington.edu

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Page 19: Environmental Economics Hendrik Wolff hgwolff@u.washington.edu

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0.0

5.1

.15

.2D

ensi

ty

0 2 4 6 8 10Present HDD (1000s) in 2000

0.0

5.1

.15

.2.2

5D

ensi

ty

0 2 4 6 8 10Future HDD (1000s) in 2100

0.1

.2.3

.4.5

Den

sity

0 2 4 6 8 10Present CDD (1000s) in 2000

0.1

.2.3

Den

sity

0 2 4 6 8 10Future CDD (1000s) in 2100

Gaussian kernel, bandwidth = .2. 10000+ HDDs (mainly Alaska) put in last bin

Population-Weighted Change in Heating and Cooling Degree Days: 2000-2100

Page 20: Environmental Economics Hendrik Wolff hgwolff@u.washington.edu

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0.0

5.1

.15

.2D

ensi

ty

0 2 4 6 8 10Present HDD (1000s) in 2000

0.0

5.1

.15

.2.2

5D

ensi

ty

0 2 4 6 8 10Future HDD (1000s) in 2100

0.1

.2.3

.4.5

Den

sity

0 2 4 6 8 10Present CDD (1000s) in 2000

0.1

.2.3

Den

sity

0 2 4 6 8 10Future CDD (1000s) in 2100

Gaussian kernel, bandwidth = .2. 10000+ HDDs (mainly Alaska) put in last bin

Population-Weighted Change in Heating and Cooling Degree Days: 2000-2100

Page 21: Environmental Economics Hendrik Wolff hgwolff@u.washington.edu

21

0.0

5.1

.15

.2D

ensi

ty

0 2 4 6 8 10Present HDD (1000s) in 2000

0.0

5.1

.15

.2.2

5D

ensi

ty

0 2 4 6 8 10Future HDD (1000s) in 2100

0.1

.2.3

.4.5

Den

sity

0 2 4 6 8 10Present CDD (1000s) in 2000

0.1

.2.3

Den

sity

0 2 4 6 8 10Future CDD (1000s) in 2100

Gaussian kernel, bandwidth = .2. 10000+ HDDs (mainly Alaska) put in last bin

Population-Weighted Change in Heating and Cooling Degree Days: 2000-2100

Page 22: Environmental Economics Hendrik Wolff hgwolff@u.washington.edu

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0.0

5.1

.15

.2D

ensi

ty

0 2 4 6 8 10Present HDD (1000s) in 2000

0.0

5.1

.15

.2.2

5D

ensi

ty

0 2 4 6 8 10Future HDD (1000s) in 2100

0.1

.2.3

.4.5

Den

sity

0 2 4 6 8 10Present CDD (1000s) in 2000

0.1

.2.3

Den

sity

0 2 4 6 8 10Future CDD (1000s) in 2100

Gaussian kernel, bandwidth = .2. 10000+ HDDs (mainly Alaska) put in last bin

Population-Weighted Change in Heating and Cooling Degree Days: 2000-2100

116% Increase

33% Decrease

Page 23: Environmental Economics Hendrik Wolff hgwolff@u.washington.edu

Differential trends in Carbon Dioxide (CO2) versus Sulfur Dioxide (SO2)

Page 24: Environmental Economics Hendrik Wolff hgwolff@u.washington.edu

Differential trends in Carbon Dioxide (CO2) versus Sulfur Dioxide (SO2)

Page 25: Environmental Economics Hendrik Wolff hgwolff@u.washington.edu

SO2: First Big “Success” Story of Impact of “Environmental Economics” on Policy

• SO2 Acid Rain Dying forests

Page 26: Environmental Economics Hendrik Wolff hgwolff@u.washington.edu

Cap and Trade of SO2 emissions

• By late eighties: U.S. emits 20 million tons SO2/year

• 1990 C & T established with goal to cut emissions by 50% over 10 years

Page 27: Environmental Economics Hendrik Wolff hgwolff@u.washington.edu

Cap and Trade of SO2 emissions

• By late eighties: U.S. emits 20 million tons SO2/year

• 1990 C & T established with goal to cut emissions by 50% over 10 years

• Figure of “price of sulfur” = marginal abatement cost of SO2 control dropped from USD 500 to USD65

Page 28: Environmental Economics Hendrik Wolff hgwolff@u.washington.edu

Ozone Depletion in Stratosphere

• Ozone in Stratosphere necessary to decrease ultra violet radiation to hit planet (UV-Bskin cancer)

• Refrigerants (i.e. CFCs) destroy O3 molecules• World observes steady magnitude of ozone hole in

stratosphere since 1980• 1986: Montreal Protocol bans (most) CFCs• Ozone hole slowly starting now to decrease BUT global

warming cools stratosphere, difficult to predict...• http://www.youtube.com/watch?v=qUfVMogIdr8

Page 29: Environmental Economics Hendrik Wolff hgwolff@u.washington.edu

Ozone Depletion in Stratosphere

• Ozone in Stratosphere necessary to decrease ultra violet radiation to hit planet (UV-Bskin cancer)

• Refrigerants (i.e. CFCs) destroy O3 molecules• World observes steady magnitude of ozone hole in

stratosphere since 1980• 1986: Montreal Protocol bans (most) CFCs• Ozone hole slowly starting now to decrease BUT global

warming cools stratosphere, difficult to predict...• http://www.youtube.com/watch?v=qUfVMogIdr8

Page 30: Environmental Economics Hendrik Wolff hgwolff@u.washington.edu

Which Pollutants Increase/Decrease?

• Increase– CO2– Illegal oceanic waste dumping– Nuclear contamination– Particulate Matter in Urban Areas (Developing

Countries)• Decrease

– SO2 in U.S. – Local Water Pollution Homework

Page 31: Environmental Economics Hendrik Wolff hgwolff@u.washington.edu

Which Pollutants Increase/Decrease?

• Increase– CO2– Illegal oceanic waste dumping– Nuclear contamination– Particulate Matter in Urban Areas (Developing

Countries)• Decrease

– SO2 in U.S. – CFCs worldwide– Local Water Pollution Homework

Page 32: Environmental Economics Hendrik Wolff hgwolff@u.washington.edu

Which Pollutants Increase/Decrease?

• Increase– CO2– Illegal oceanic waste dumping– Nuclear contamination– Particulate Matter in Urban Areas (Developing

Countries)• Decrease

– SO2 in U.S. – CFCs worldwide– Local Water Pollution Homework