IDEAS home Printed from https://ideas.repec.org/p/sol/wpaper/2013-220008.html
   My bibliography  Save this paper

The problem of high restoration costs of marine habitats damaged in the past decades by harbour facilities: Extended Producer Responsibility as an option

Author

Listed:
  • Mateo Cordier
  • Walter Hecq
  • José A. Pérez Agúndez

Abstract

Most papers propose extended producer responsibility (EPR) as an incentive for the future development of cleaner production processes. In this paper, we propose an EPR calculation method as an instrument to collect funds to offset past environmental degradations that occurred before environmental legislations were enforced. However, often an unfortunate side effect of EPR is the legal disputes over who should be considered liable. To solve that problem, we suggest a scientifically rigorous method that identifies liable economic agents and calculates the apportionment of restoration costs between producers responsible for direct environmental degradations and their intermediate and final consumers responsible for indirect degradations. We apply our method to the case of fish nurseries – a marine habitat – that have been continually destroyed by industrial harbours since the industrial revolution in the Seine estuary (France). Our EPR calculation method should diminish losses of profit per polluter caused by the restoration costs. Such diminution is expected to reduce lobby pressures responsible for lower environmental targets in environmental legislations. EPR is also expected to preserve harbor activities that contribute to the general interest and generate a positive externality for climate change mitigation, justifying restoration costs to be borne by a larger number of sectors than harbours alone. In the EPR restoration scenario involving polluters, users, users of users and final consumers, profit losses for the main destructors of habitats – harbours and the mining sector – reaches 12.6% and 6.3% respectively. For the other sectors, profit losses do not exceed 3.4% (estimated with an input-output model).

Suggested Citation

  • Mateo Cordier & Walter Hecq & José A. Pérez Agúndez, 2015. "The problem of high restoration costs of marine habitats damaged in the past decades by harbour facilities: Extended Producer Responsibility as an option," Working Papers CEB 15-045, ULB -- Universite Libre de Bruxelles.
  • Handle: RePEc:sol:wpaper:2013/220008
    as

    Download full text from publisher

    File URL: https://dipot.ulb.ac.be/dspace/bitstream/2013/220008/3/wp15045.pdf
    File Function: Œuvre complète ou partie de l'œuvre
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Muradian, Roldan & Corbera, Esteve & Pascual, Unai & Kosoy, Nicolás & May, Peter H., 2010. "Reconciling theory and practice: An alternative conceptual framework for understanding payments for environmental services," Ecological Economics, Elsevier, vol. 69(6), pages 1202-1208, April.
    2. Cordier, Mateo & Pérez Agúndez, José A. & Hecq, Walter & Hamaide, Bertrand, 2014. "A guiding framework for ecosystem services monetization in ecological–economic modeling," Ecosystem Services, Elsevier, vol. 8(C), pages 86-96.
    3. Dahlman, Carl J, 1979. "The Problem of Externality," Journal of Law and Economics, University of Chicago Press, vol. 22(1), pages 141-162, April.
    4. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
    5. van den Bergh, Jeroen C. J. M. & Nijkamp, Peter, 1991. "Operationalizing sustainable development: dynamic ecological economic models," Ecological Economics, Elsevier, vol. 4(1), pages 11-33, October.
    6. Harri Kalimo & Reid Lifset & Chris van Rossem & Luk van Wassenhove & Atalay Atasu & Kieren Mayers, 2012. "Greening the economy through design incentives: Allocating extended producer responsibility," ULB Institutional Repository 2013/177827, ULB -- Universite Libre de Bruxelles.
    7. repec:hal:wpspec:info:hdl:2441/8523 is not listed on IDEAS
    8. Campante, Filipe R. & Ferreira, Francisco H.G., 2007. "Inefficient lobbying, populism and oligarchy," Journal of Public Economics, Elsevier, vol. 91(5-6), pages 993-1021, June.
    9. Dahl, Carol & Kuralbayeva, Karlygash, 2001. "Energy and the environment in Kazakhstan," Energy Policy, Elsevier, vol. 29(6), pages 429-440, May.
    10. Johann Audrain & Mateo Cordier & Sylvie Faucheux & Martin O’Connor, 2013. "Écologie territoriale et indicateurs pour un développement durable de la métropole parisienne," Revue d'économie régionale et urbaine, Armand Colin, vol. 0(3), pages 523-559.
    11. Gerlagh, Reyer & Keyzer, Michiel A., 2003. "Efficiency of conservationist measures: an optimist viewpoint," Journal of Environmental Economics and Management, Elsevier, vol. 46(2), pages 310-333, September.
    12. Zweifel, Peter & Tyran, Jean-Robert, 1994. "Environmental impairment liability as an instrument of environmental policy," Ecological Economics, Elsevier, vol. 11(1), pages 43-56, September.
    13. Rahman, Akim M. & Edwards, Clive A., 2004. "Electricity: taxes on emission liabilities. An examination of the economic effectiveness of Polluter Pays Principles," Energy Policy, Elsevier, vol. 32(2), pages 221-235, January.
    14. Kalss, Susanne, 2007. "Recent developments in liability for nondisclosure of capital market information," International Review of Law and Economics, Elsevier, vol. 27(1), pages 70-95, March.
    15. Anthony Ogus, 2004. "Comparing regulatory systems: institutions, processes and legal forms in industrialised countries," Chapters, in: Paul Cook & Colin Kirkpatrick & Martin Minogue & David Parker (ed.), Leading Issues in Competition, Regulation and Development, chapter 7, Edward Elgar Publishing.
    16. Claudio Ferrari & Olaf Merk & Anna Bottasso & Maurizio Conti & Alessio Tei, 2012. "Ports and Regional Development: A European Perspective," OECD Regional Development Working Papers 2012/7, OECD Publishing.
    17. Bergh, J.C.J.M. & Nijkamp, P., 1991. "Operationalizing sustainable development : dynamic economic-ecological models," Serie Research Memoranda 0015, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    18. Munda, G. & Nijkamp, P. & Rietveld, P., 1994. "Qualitative multicriteria evaluation for environmental management," Ecological Economics, Elsevier, vol. 10(2), pages 97-112, July.
    19. Turner, R. Kerry & van den Bergh, Jeroen C. J. M. & Soderqvist, Tore & Barendregt, Aat & van der Straaten, Jan & Maltby, Edward & van Ierland, Ekko C., 2000. "Ecological-economic analysis of wetlands: scientific integration for management and policy," Ecological Economics, Elsevier, vol. 35(1), pages 7-23, October.
    20. Bromley, Daniel W., 1998. "Searching for sustainability: The poverty of spontaneous order," Ecological Economics, Elsevier, vol. 24(2-3), pages 231-240, February.
    21. Damania, Richard & Fredriksson, Per G., 2000. "On the formation of industry lobby groups," Journal of Economic Behavior & Organization, Elsevier, vol. 41(4), pages 315-335, April.
    22. Gullberg, Anne Therese, 2008. "Lobbying friends and foes in climate policy: The case of business and environmental interest groups in the European Union," Energy Policy, Elsevier, vol. 36(8), pages 2954-2962, August.
    23. Walter Y. Oi, 1973. "The Economics of Product Safety," Bell Journal of Economics, The RAND Corporation, vol. 4(1), pages 3-28, Spring.
    24. Suvankulov, Farrukh & Lau, Marco Chi Keung & Ogucu, Fatma, 2012. "Price regulation and relative price convergence: Evidence from the retail gasoline market in Canada," Energy Policy, Elsevier, vol. 40(C), pages 325-334.
    25. Cornelia Woll, 2006. "Lobbying in the European Union: From Sui Generis to a Comparative Perspective," Post-Print hal-01021182, HAL.
    26. Remond-Gouilloud, Martine, 1990. "Insurance, liability and compensation," Marine Policy, Elsevier, vol. 14(3), pages 236-242, May.
    27. Tovar, Patricia, 2009. "The effects of loss aversion on trade policy: Theory and evidence," Journal of International Economics, Elsevier, vol. 78(1), pages 154-167, June.
    28. Kopsakangas-Savolainen, Maria & Svento, Rauli, 2010. "Comparing welfare effects of different regulation schemes: An application to the electricity distribution industry," Energy Policy, Elsevier, vol. 38(11), pages 7370-7377, November.
    29. Thomas Lindhqvist & Reid Lifset, 2003. "Can We Take the Concept of Individual Producer Responsibility from Theory to Practice?," Journal of Industrial Ecology, Yale University, vol. 7(2), pages 3-6, April.
    30. Blanca Gallego & Manfred Lenzen, 2005. "A consistent input-output formulation of shared producer and consumer responsibility," Economic Systems Research, Taylor & Francis Journals, vol. 17(4), pages 365-391.
    31. repec:hal:spmain:info:hdl:2441/8523 is not listed on IDEAS
    32. Leontief, Wassily, 1970. "Environmental Repercussions and the Economic Structure: An Input-Output Approach," The Review of Economics and Statistics, MIT Press, vol. 52(3), pages 262-271, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mateo Cordier & T Poitelon & W Hecq, 2018. "Developing a shared environmental responsibility principle for distributing cost of restoring marine habitats destroyed by industrial harbors," Working Papers hal-04566013, HAL.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mateo Cordier & T Poitelon & W Hecq, 2018. "Developing a shared environmental responsibility principle for distributing cost of restoring marine habitats destroyed by industrial harbors," Working Papers hal-04566013, HAL.
    2. Cordier, Mateo & Pérez Agúndez, José A. & O'Connor, Martin & Rochette, Sébastien & Hecq, Walter, 2011. "Quantification of interdependencies between economic systems and ecosystem services: An input-output model applied to the Seine estuary," Ecological Economics, Elsevier, vol. 70(9), pages 1660-1671, July.
    3. Gowdy, John M. & Ferreri Carbonell, Ada, 1999. "Toward consilience between biology and economics: the contribution of Ecological Economics," Ecological Economics, Elsevier, vol. 29(3), pages 337-348, June.
    4. Nijkamp, Peter & van den Bergh, Jeroen C. J. M., 1997. "New advances in economic modelling and evaluation of environmental issues," European Journal of Operational Research, Elsevier, vol. 99(1), pages 180-196, May.
    5. Ru_diger Pethig, 2001. "On the future of environmental economics," Chapters, in: Henk Folmer & H. Landis Gabel & Shelby Gerking & Adam Rose (ed.), Frontiers of Environmental Economics, chapter 15, Edward Elgar Publishing.
    6. Munda, G. & Nijkamp, P. & Rietveld, P., 1995. "Qualitative multicriteria methods for fuzzy evaluation problems: An illustration of economic-ecological evaluation," European Journal of Operational Research, Elsevier, vol. 82(1), pages 79-97, April.
    7. Toman, Michael & Pezzey, John C., 2002. "The Economics of Sustainability: A Review of Journal Articles," RFF Working Paper Series dp-02-03, Resources for the Future.
    8. Cordier, Mateo & Pérez Agúndez, José A. & Hecq, Walter & Hamaide, Bertrand, 2014. "A guiding framework for ecosystem services monetization in ecological–economic modeling," Ecosystem Services, Elsevier, vol. 8(C), pages 86-96.
    9. Lenzen, Manfred & Murray, Joy & Sack, Fabian & Wiedmann, Thomas, 2007. "Shared producer and consumer responsibility -- Theory and practice," Ecological Economics, Elsevier, vol. 61(1), pages 27-42, February.
    10. Bergh, J.C.J.M. & Nijkamp, P., 1992. "Dynamic macro modelling for sustainable development : economic-environmental integration and the materials balance model," Serie Research Memoranda 0081, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    11. Paavola, Jouni & Adger, W. Neil, 2005. "Institutional ecological economics," Ecological Economics, Elsevier, vol. 53(3), pages 353-368, May.
    12. Johann Audrain & Mateo Cordier & Sylvie Faucheux & Martin O'Connor, 2012. "La ville et son estuaire: écologie territoriale et indicateurs pour un développement durable de la métropole parisienne," Working Papers hal-00911666, HAL.
    13. Petrick, Martin, 2004. "Governing Structural Change And Externalities In Agriculture: Toward A Normative Institutional Economics Of Rural Development," IAMO Discussion Papers 14878, Institute of Agricultural Development in Transition Economies (IAMO).
    14. Johann Audrain & Mateo Cordier & Sylvie Faucheux & Martin O’Connor, 2013. "Écologie territoriale et indicateurs pour un développement durable de la métropole parisienne," Revue d'économie régionale et urbaine, Armand Colin, vol. 0(3), pages 523-559.
    15. Oleksandr Sushchenko & Reimund Schwarze, 2016. "Carbon taxation and market financial instruments for mobilizing climate finance," Discussion Paper Series RECAP15 23, RECAP15, European University Viadrina, Frankfurt (Oder).
    16. Olivier Meier & Aurélie Sannajust, 0. "The smart contract revolution: a solution for the holdup problem?," Small Business Economics, Springer, vol. 0, pages 1-16.
    17. Dario Belluomini, 2016. "Environmental safeguard and Sustainable Development: An Insight into Payments for Ecosystema Services," CEsA Working Papers 140, CEsA - Centre for African and Development Studies.
    18. Heindl, Peter, 2012. "Transaction costs and tradable permits: Empirical evidence from the EU emissions trading scheme," ZEW Discussion Papers 12-021, ZEW - Leibniz Centre for European Economic Research.
    19. Ervin, David E. & Fox, Glenn, 1998. "Environmental Policy Considerations In The Grain-Livestock Subsectors In Canada, Mexico And The United States," Proceedings of the 4th Agricultural and Food Policy Systems Information Workshop 1998: Economic Harmonization in the Canadian\U.S.\Mexican Grain-Livestock Subsector; 16754, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
    20. Kathleen McAfee, 2012. "The Contradictory Logic of Global Ecosystem Services Markets," Development and Change, International Institute of Social Studies, vol. 43(1), pages 105-131, January.

    More about this item

    Keywords

    restoration cost; extended producer responsibility; marine habitat restoration; several liability; input-output model; Coase theorem;
    All these keywords.

    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:sol:wpaper:2013/220008. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Benoit Pauwels (email available below). General contact details of provider: https://edirc.repec.org/data/cebulbe.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.