Three essays on environmental economics

This dissertation contains three essays on Environmental Economics with particular reference to Natural Resource Consumption in modern economic systems. The work is devoted to two main topics investigated in the theoretical aspects and empirically analyzed. The first analysis focuses on estimating if there exists a relationship similar to the Environmental Kuznets Curve (EKC) between Domestic Material Consumption indicator - provided by official statistics - and GDP using a cross-European panel of countries over the period 2000-2011. The second analysis focuses on the Regional management of mining and quarrying (m&q) resources in Italy. Under environmental federalism issues, the aim is to verify the relationship between quantities of these natural non-renewable resources extracted and m&q domestic price index and the effect of Regional Responsibility about m&q activity on m&q domestic producer price index over the period 1980-2010. The first essay: Domestic Material Consumption Indicator and Natural Resources: a European Analysis of the Environmental Kuznets Curve In this work, the relation between per capita Domestic Material Consumption indicator (DMC) assumed as a “potential environmental degradation” indicator and per capita income (GDP) is investigated. DMC is a physical measure developed by official statistics in recent years and derived from the Environmental Satellite Accounts System to evaluate the material dimension of human development and the environmental consequences of economic growth. While the economic literature has focused its attention mainly on pollution of air, water and land, we considered as environmental degradation the impact of production and consumption activities on natural resources extracted from the environment for the functioning of economic systems. In particular, we estimate if there exists a relationship similar to the Environmental Kuznets Curve (EKC) between DMCpc indicator and GDPpc using a cross–European panel of countries (period 2000-2011). The estimations are based on two comparisons: EU-27 and 30 European countries including three neighbouring countries and Western and Eastern European countries. The results do not support the EKC hypothesis in the panel estimations. Turning points are very high and it is present a delink between DMCpc and GDPpc as in the case of CO2 emissions and income literature. The second essay: Use of Natural Non-renewable Resources and Environmental Federalism in Italy. Evidence from Regional Management of Mining and Quarrying. The separation of powers and responsibilities has evolved over time in Italy given that Constitutional provisions and political reasons have been pushing towards a greater decentralization since last thirty years. Under environmental federalism issues, an interesting case of study - capable of being empirically treated - is the attribution of power to the Regional governments over the management of mining and quarrying (m&q). This process is started in the ’70s with the Presidential Decree N. 616 of 1977. By examining Regional Laws, this paper highlights how misleading is the perception of policy makers of the real value of raw minerals domestically extracted. Raw minerals are non-renewable resources that seem considered closer to free access goods by considering the low value of fees and tariffs of right of excavation set. Using official statistics, the aim of our econometric analysis is to verify which is the relationship between the quantity extracted of these exhaustible natural resources and the m&q domestic producer price index. Moreover, we investigate if the supply curve could be influenced by the effect of Italian Regions Responsibility about m&q activity management over the period 1980-2010. The third essay: The exploitation of mineral resources in Italy analyzed through national and regional legislation. In Italy, Constitutional provisions in implementing local autonomies and political reasons have been pushing towards a greater decentralization of powers and responsibilities in many subjects since 1970. In this work we analyze the attribution of powers to the Regional governments over the management of mining and quarrying (m&q). Under environmental federalism issues, this process started with the Presidential Decree N. 616 of 1977. By examining in detail the most relevant National and Regional Laws on m&q activities, this paper highlights what has been the ability of the Regions in the use of regulatory and administrative tools to manage the exploitation of these non-renewable natural resources and to protect the natural environment, over the period 1970-2010. The Regional legislative framework appears diverse and incomplete. Policy makers activity shows evident difficulties due to the absence in many Regions both of Regional Plans of Extractive Activities, as provided by law, and of the care of negative externalities against the environment. Local governance seems consider mineral resources as open access goods showing a misleading perception about the nature and the value of raw minerals domestically extracted. This perception is reflected in very low tariffs of the right of extraction, not incorporating the component of the scarcity of such exhaustible resources and forgoing government revenues.