The Amazon Rainforest is a global public
good. As such, and given that 15 percent of the original
Amazon forest area has already been lost, households
worldwide might be willing to pay to reduce or avoid
additional losses. A full elicitation of global preferences
for valuing preservation of the current forest, using
stated-preference population surveys, would be costly and
time consuming. Alternatively, this paper uses a Delphi

"Getting the prices right" is
a good starting point but is not sufficient for achieving
environmentally efficient outcomes. Other policy
interventions are often necessary to complement pricing
policies. Moreover, when pricing is not at all feasible,
regulatory and command-and-control policies must be used
instead. This paper focuses on three interrelated themes at
the core of the pricing problem. First, there is the

Much of the rural poor -- who are
growing in number -- are concentrated in ecologically
fragile and remote areas. The key ecological scarcity
problem facing such poor households is a vicious cycle of
declining livelihoods, increased ecological degradation and
loss of resource commons, and declining ecosystem services
on which the poor depend. In addition, developing economies
with high concentrations of their populations on fragile

Electricity infrastructure is one of the
most important development challenges in Africa. While more
resources are clearly needed to invest in new capacities, it
is also important to promote energy efficiency and manage
the increasing demand for power. This paper evaluates one of
the recent energy-efficiency programs in Ethiopia, which
distributed 350,000 compact fluorescent lamp bulbs free of
charge. The impact related to this first phase is estimated

This paper reviews dynamic general
equilibrium models in order to collect insights on the
interaction between economic growth and environmental
issues. The authors discuss the Ramsey model and extend it
for natural resource inputs and pollution, as well as for
endogenous technical change. Green growth becomes within
reach if there is good substitution, a clean backstop
technology, a small share of natural resources in gross

This paper reviews the challenges and
opportunities raised by international trade for developing
countries considering a green growth strategy. A key concern
is the effect of environmental policies on international
competitiveness. For production-generated pollution, there
is evidence that stringent environmental policy reduces some
indicators of competitiveness, but the effect is small in
most sectors. However, tightening up environmental standards

Today, 370 million people live in cities
in earthquake prone areas and 310 million in cities with
high probability of tropical cyclones. By 2050, these
numbers are likely to more than double. Mortality risk
therefore is highly concentrated in many of the world s
cities and economic risk even more so. This paper discusses
what sets hazard risk in urban areas apart, provides
estimates of valuation of hazard risk, and discusses

This paper examines the cost of
producing emission reduction credits under the Clean
Development Mechanism. Using project-specific data, cost
functions are estimated using alternative functional forms.
The results show that, in general, the distribution of
projects in the pipeline does not correspond exclusively to
the cost of generating anticipated credits. Rather,
investment choices appear to be influenced by location and

Many experts believe that low-cost
mitigation opportunities in agriculture are abundant and
comparable in scale to those found in the energy sector.
They are mostly located in developing countries and have to
do with how land is used. By investing in projects under the
Clean Development Mechanism (CDM), countries can tap these
opportunities to meet their own Kyoto Protocol obligations.
The CDM has been successful in financing some types of

A pricing reform in Turkey increased the
residential electricity tariff by more than 50 percent in
2008. The reform, aimed at encouraging energy efficiency and
private investment, sparked considerable policy debate about
its potential impact on household welfare. This paper
estimates a short-run residential electricity demand
function for evaluating the distributional consequences of
the tariff reform. The model allows heterogeneity in

This paper proposes an alternative
approach to addressing the complex problems of climate
change caused by greenhouse gas emissions. The author, who
won the 2009 Nobel Prize in Economic Sciences, argues that
single policies adopted only at a global scale are unlikely
to generate sufficient trust among citizens and firms so
that collective action can take place in a comprehensive and
transparent manner that will effectively reduce global

The concept of "Green Growth" is a focus of much interest and considerable debate among decision makers concerned with enhancing both nearer-term economic progress and longer-term environmental sustainability. Proponents of Green Growth emphasize not only the need to protect various forms of natural capital to sustain improvements in material living standards and poverty reduction, but also the potential for strategically crafted environmental policies to achieve sustainability at low cost, perhaps even to help stimulate growth.