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Beginning in the early 1990’s, grazing lands once held in common were contracted to individual households in the rangeland regions of China. The resulting fragmentation of rangelands has led to ecological and social problems. As China seeks to address intractable poverty and rangeland degradation, attention has turned to rental, or transfer, of contracted grazing land as a market-based approach to re-aggregating grazing land into larger units that support economies of scale. However, given that many pastoral regions still maintain community customary institutions, what the relationship between market mechanisms and local customary institutions should be in rangeland management needs further analysis. This paper applies comparative case studies of two types of relationships between market mechanisms and customary institutions: (1) market mechanisms that replace customary institutions in the case of Axi village, and (2) market mechanisms that are embedded within customary institutions in Xiareer village. This allows contrast of the impacts of differing approaches on livelihoods, livestock production, and wealth differentiation among pastoral households. We found that there is a higher level of livestock mortality, lower livestock productivity, and higher livestock production cost in Axi Village compared to Xiareer Village. In addition, household asset levels are higher and there is less income differentiation in Xiareer Village. It is concluded that embedding market mechanisms within customary institutions has had notable benefits for the herders of Xiareer Village, because it is a better fit to the coupled pastoral social-ecological system. Based on these findings, we argue that in pastoral communities where the rangeland transfer system for contracted grazing land has not yet been implemented, it is critical to reconsider China’s current policy approach to pay greater attention to the innovative management systems being developed in local regions. Instead of considering market-based approaches as oppositional to traditional institutions, options that derive from the interaction of market-based and customary institutions should be considered. [ABSTRACT FROM AUTHOR]

Power-to-Gas systems provide a versatile and effective form of energy storage. By utilizing renewable and off-peak electricity to create hydrogen through electrolysis, an alternative energy vector is created which can be utilized for grid management and energy transportation through the natural gas infrastructure. The rapid response of electrolysers has been proven to be able to match fluctuating demand signals means that they are not only useful for creating hydrogen for energy storage but can also provide important ancillary power services. As the largest market for hydrogen current is in the refining of petroleum, it makes sense that creating hydrogen through electrolysis provides an opportunity to purchase electricity at low cost while reducing the greenhouse gas emissions that would result from using the current steam methane reformation (SMR) approach for the production of the needed hydrogen. It is shown through MatLAB simulations that by using known electrical costs and hydrogen pricing or credit rates, reasonable payback periods and internal rates of return are attainable when the cost value of the hydrogen energy is compared to renewable ethanol costs, or when the production of the hydrogen considers cap-and-trade carbon emissions revenues. [ABSTRACT FROM AUTHOR]

This article explores some of the central economic and political problems with the use of tradable permits to solve environmental problems. Drawing from transaction cost economics, political economy, and market theory, it does so by looking at the history of three programs for curbing pollution in the United States—the Clean Air Act, the leaded gasoline phase-out, and water permits in Wisconsin. The article begins by briefly summarizing the history of each of these programs before looking at a host of challenges related to political compromises in program design, transaction costs, spatial distortions (such as geographic sensitivity and wrong-way trading of credits), temporal distortions (such as the episodic nature of pollution and volatility of market prices), and market abuses. These concerns are raised with an eye for how historical experience may inform the current debate about how to design effective market mechanisms to respond to climate change and other forms of energy-related environmental degradation. [ABSTRACT FROM AUTHOR]

This study proposes personal mobility carbon allowance scheme, collects the data using an online experimental game, and analyzes data with econometric models. Personal mobility carbon allowance (PMCA) schemes allocate carbon credits to users at no cost based on the emissions reduction goal of the system. Users spend carbon credits for travel and a market place exists where users can buy or sell credits. To understand this process, a real-time experimental game tool is developed where players are asked to make travel decisions within the carbon budget set by PMCA and they are allowed to trade carbon credits in a market modeled as a double auction game. Results from estimated random parameter models show that medium and low income group users are highly sensitive to increase in carbon cost for grocery (non-work) trips. Further, the elasticity values show that high income group are less sensitive to carbon cost increase for work trips. The market dynamics such as number of total bids or asks are examined through count data models. The insights from the models can be used to effectively design the parameters of PMCA schemes. In addition, the experimental game tool and the analysis framework can be applied to understand other market based strategies such as carbon tax and tradable emissions permits. [ABSTRACT FROM AUTHOR]

The rapidly increasing penetration of distributed energy resources (DERs) calls for a hierarchical framework where aggregating entities handle the energy management decisions of small DERs and represent these DERs upstream. These energy management decisions are typically envisaged to be made via market-based frameworks, aspiring the so-called Local Electricity Markets (LEMs). A rich literature of studies models such LEMs adopting various modeling assumptions and proposes various Market Mechanisms towards making dispatch and pricing decisions. In this paper, we make a systematic presentation of a LEM formulation, elaborating on the cornerstone attributes of the market model, i.e. the Market Scope, the Modeling Assumptions, the Market Objective, and the Market Mechanism. We discuss the different market model choices and their implications and then focus on the prevailing approaches of Market Mechanisms. Finally, we classify the relevant literature based on the market model that it adopts and the proposed Market Mechanism, visualize the results and also discuss patterns and trends. • Describe a systematic framework for LEM market models. • Categorize the Market Mechanisms most typically used in LEMs. • Present the main known results regarding the properties of each mechanism family. • Classify the literature within the presented framework. • Visualize the classification, revealing patterns, areas less researched and research gaps. [ABSTRACT FROM AUTHOR]

Abstract: The spread of the ecosystem services framework has been accompanied by the promotion of market-based policy instruments for environmental governance. In this paper we clarify the rationale, policy goals and governance challenges of the ecosystem services framework. After systematizing the limitations of market-based policy tools for enhancing the provision of ecosystem services, we argue that hybrid regimes are more suitable (compared to pure markets or hierarchies) to deal with the governance challenges derived from the characteristics of ecosystem services, particularly their common good character and their intrinsic complexity. The paper pleads for an alternative conceptual underpinning of market-based instruments, in order to make them more compatible with hybrid forms of governance. We discuss the major implications of such analytical shift. [Copyright &y& Elsevier]

Summary: Market mechanisms for forest environmental services are a new approach for conservation, but there is also an increasing interest in the derived developmental benefits of these mechanisms. We first propose a conceptual framework for future research on the livelihood impacts of environmental service markets. We then review eight Latin American case studies on carbon sequestration and watershed protection market initiatives, finding positive local income effects in most cases, more land tenure security and socioinstitutional strengthening in some cases, but some negative effects also. We recommend pro-poor policy measures such as reducing smallholders’ transaction costs and removing inappropriate access restrictions. [Copyright &y& Elsevier]

Abstract: Increased stormwater flows are a direct result of urbanization and the consequent increase in the proportion of land area under impervious surface. Due to its contribution to abnormally high stream flows and its role as a carrier of pollutants that degrade water quality, excess stormwater runoff has negative impacts on both terrestrial and aquatic ecosystems. In response to the increased magnitude and frequency of stormwater runoff events, municipalities and local governments seek cost-effective strategies to manage the risks associated with these stormwater flows. The goal of a proposed interdisciplinary approach involves providing incentives for the construction of small-scale best management practices throughout a small urban watershed, leading to a cost-effective means to control stormwater runoff, and partially restoring a more natural hydrologic regime to a watershed area. Market mechanisms and other incentives have been suggested as plausible approaches to the reduction of stormwater runoff. Development and implementation of market mechanisms and incentives to reduce stormwater runoff, however, involves interdisciplinary considerations and issues. This paper develops an interdisciplinary view of the stormwater runoff issue, beginning with a brief description of stormwater runoff management from a hydrologic perspective. We then present a background on types of market instruments and their related incentives as possible approaches to reducing the risks associated with both the magnitude and frequency of recurrence for excess stormwater runoff flows. This is followed by an analysis of how the federal Clean Water Act and state water laws have dealt with stormwater issues. These perspectives and methods are synthesized to develop several stormwater management scenarios that include stormwater user fees, stormwater runoff charges, allowance markets, and voluntary offset programs. Each of these programs would likely incorporate stormwater best management practices at the watershed level, yet in different ways, and we discuss the opportunities and limitations borne out of our analysis of the legal, economic, and hydrologic considerations. [Copyright &y& Elsevier]

The following analysis contends that the FCC''s creation of Guard Band Managers is an important step forward in introducing more market-based forces to radio spectrum management. Guard Band Managers perform the function of a frequency coordinator—they parcel out “odd shaped”, business specific frequency assignments—but on a for-profit basis. The creation of the Guard Band Manager for the 700 MHz Guard Band is an example of the Federal Communications Commission using market-based forces to enhance the efficient use of radio spectrum in a setting constrained by the Commission''s desire to put severe limits on how the band is used. [Copyright &y& Elsevier]

Financial tools can present a solution to conservation conflicts. However, their effectiveness may be limited unless they address the underlying drivers of conflict. The restoration of controversial megafauna can be tied to a clash of urban and rural values and rejection by rural landowners of government control over their actions. Here, we consider a latent financial opportunity presented by general public support for large predator restoration to maintain a wolf-livestock coexistence program in Washington state, USA. We measured respondents' (N = 420) willingness-to-pay for gray wolf (Canis lupus) conservation and their preferences for program funding mechanisms, including voluntary contributions, mandatory taxes, and a 'predator-friendly' ranching certification scheme. Respondents were supportive of a publicly funded program, which represented around USD246 million in estimated economic value. This benefit is more than 150 times the cost of the current government-run program. There were mixed preferences for funding mechanisms, so we recommend adopting multiple approaches. A new funding source would allow the program to be rancher-led, shifting agency from government to rural communities, as well as providing outreach opportunities for ranchers to the urban public. As such, our proposal addresses two of the major socio-political conflicts underlying the wolf debate in North America while also generating funding to protect the ranching industry. [ABSTRACT FROM AUTHOR]

The terminology "Sustainability" refers to the practice of integrated principles from environmentalism, social responsibility, and economic development that promote endurance. The question how to maintain a sustainable developing mode concerns many developed and developing countries, whilst the rapid growth of environmental regulations geared toward sustainability summons the doubt of how such policies impact firm productivity and efficiency. In this study, we used a natural experiment methodology to explore the relationship between environmental regulation policy and economic outcomes based on China, where much attention on environmental issues have been putting. A difference-in-difference-in-differences (DDD) model was adopted in our research to solve the endogeneity problem. We root our exploration in the environmental policies of China's Eleventh Five-Year Plan and consider the different levels of pollution across industries. Employing a large dynamic panel dataset of the Above-scale Industrial Dataset from the period between 1998 and 2012 with roughly 3,000,000 observations, we calculate a number of indicators of corporate performance, including Total Factor Productivity (TFP) and Return on Assets (ROA). Moreover, the Eleventh Five-Year Plan's lasting economic effects are also investigated. The results evidence that China's environmental regulation policies negatively affect corporate TFP and ROA in the short-term. Moreover, significant lagged effects can be seen, and the evidence shows that other aspects of economic performance are also negatively associated with environmental regulation policies. Furthermore, we find that light financial constraints, long-term investment behaviors, and capital-labor structures play important roles in bolstering the performance of firms in high-polluting industries. Notably, we find that among these high-polluting firms, poorly performing firms are more likely to exit from the market. On a positive aspect, we find a significant reduction of TFP's misallocation, particularly in terms of long-term work efficiency. Our findings demonstrate that environmental regulations can help markets that cannot balance economic growth and the pollution caused by economic growth overcome failure; well-designed policy can thus help the economy grow sustainably. Image 1 ● Environmental regulation policy significantly decreases Chinese high polluting manufacturing firms' productivity and profitability; ● High polluting firms that are less financially constrained and with more long-term investments suffer less from the regulation policies; ● Environmental regulation policy plays a driving out role in the bad performed high polluting firms and increases the efficiency of resources' allocation; ● Environmental regulation policy can help decrease the misallocation of productivity in a long-term and supplement the market failure. [ABSTRACT FROM AUTHOR]