Posterior analysis of environmental damage evaluation in Europe, International Review of Applied Economics 14(3): 371-386, 2000

Posterior analysis of environmental damage evaluation in Europe, International Review of Applied Economics 14(3): 371-386. (SCOPUS, EconLit Listed). In common with E Tsionas (2000).

In this paper we consider environmental damage evaluation using two types of econometric models to analyse tree damage due to acid deposits, using cross-country data for several European countries. First, we use a set of univariate Poisson models and second, a multinomial probit model with the difference that we do not observe class specific data. The damage function is parameterized in terms of a number of economic and environmental variables. Statistical inference is conducted using Bayesian methods relying on Markov Chain Monte Carlo simulation. Natural by-products of our method include an implied ranking of countries according to environmental damage, and (exact, finite sample) posterior distributions of average country-specific environmental damage.

JEL Classification: Renewable-Resources-and-Conservation; Environmental-Management-Government-Policy (Q280); Renewable Resources and Conservation; Environmental Management Water; Air-; Climate (Q250)