Essays on environmental, energy, and natural resource economics

y dissertation focuses on examining the interrelationship among the environment, energy and economic development.;In the first essay, I explore the effects of increased uncertainty over future output prices, input costs and productivity levels on intertemporal emission permits trading. In a dynamic programming setting, a permit price is a convex function of each of these three sources of uncertainty. Increased uncertainty about future market conditions increases the expected permit price and causes risk-neutral firms to reduce ex ante emissions to smooth marginal abatement costs over time. Empirical analysis shows that increased price volatility induced by electricity market restructuring could explain 8-11% of the allowances banked during Phase I of the U.S. sulfur dioxide trading program. Numerical simulation suggests that high uncertainty may generate substantial initial compliance costs, thereby deterring new entrants and reducing efficiency; sharp emission spikes are also more likely to occur under industry-wide uncertainty shocks.;In the second essay, I examine whether electricity restructuring improves the efficiency of U.S. nuclear power generation. Based on the full sample of 73 investor-owned nuclear plants in the United States from 1992 to 1998, I estimate cross-sectional and longitudinal efficiency changes associated with restructuring, at the plant level. Various modeling strategies are presented to deal with the policy endogeneity bias that high cost plants are more likely to be restructured. Overall, I find a strikingly positive relationship between the multiple steps of restructuring and plant operating efficiency.;In the third essay, I estimate the economic impact of China's national land conversion program on local farm-dependent economies. The impact of the program on 14 industrial sectors in Gansu provinces are investigated using an input-output model. Due to regulatory restrictions, the agricultural sector cannot automatically expand or shrink its land requirements in direct proportion to output changes. Therefore, I modify a standard input-output model to incorporate supply constraints on cropping activities. A spatially explicit analysis is also implemented in a geographical information system to capture the heterogeneous land productivity. The net cost of the conservation program is estimated to be a land rent of...