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on Environmental Economics |
| By: | Lucas Bretschger; Alexandra Vinogradova |
| Abstract: | We analyze an endogenously growing economy in which production generates greenhouse gas emissions leading to global temperature increase. Global warming causes stochastic climate shocks, modeled by the Poisson process, which destroy part of the economy's capital stock. Part of the output may be devoted to emissions abatement and thus damages from climate shocks may be reduced. We solve the model in closed form and show that the optimal path is characterized by a constant growth rate of consumption and capital stock until a shock arrives, triggering a downward jump in both variables. The magnitude of the jump depends on the Poisson arrival rate, abatement efficiency, damage intensity, and the elasticity of intertemporal consumption substitution. Optimum mitigation policy consists of spending a constant share of output on abatement, which is an increasing function of the Poisson arrival rate, the economy's productivity, polluting intensity of output, and the intensity of environmental damage. Optimum growth and abatement react sharply to changes in the arrival rate and the damage intensity, suggesting more stringent climate policies for a realistic world with uncertainty compared to the certainty-equivalent case. We extend the baseline model by adding climate-induced fluctuations around the growth trend and stock pollution effects, showing the robustness of our results. |
| Keywords: | climate policy, uncertainty, natural disasters, endogenous growth |
| JEL: | O10 Q52 Q54 |
| Date: | 2014–05–28 |
| URL: | http://d.repec.org/n?u=RePEc:eus:ce3swp:0214&r=all |
| By: | Curtis, John; di Cosmo, Valeria; Deane, Paul |
| Keywords: | Climate policy/electricity/Interconnection/Ireland/Policy |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:rb2014/1/7&r=all |
| By: | Stefan Dercon |
| Abstract: | With serious impacts of climate change looming in a few decades, but current poverty still high in the developing world, we ask how to spend development aid earmarked for the poor. Poverty reduction tends to be strongly linked to economic growth, but growth impacts the environment and increases CO2 emissions. So can greener growth that is more climate-resilient and less environmentally damaging deliver large scale poverty reduction? Can aid be used for effective poverty reduction now without affecting carbon emissions substantially? We argue that there are bound to be trade-offs between emissions reductions and a greener growth on the one hand, and growth that is most effective in poverty reduction. We argue that development aid, earmarked for the poorest countries, should only selectively pay attention to climate change, and remain focused on fighting current poverty reduction, including via economic growth, not least as future resilience of these countries and their population will depend on their ability to create wealth and build up human capital now. The only use for development aid within the poorest countries for explicit climate-related investment ought to be when the investments also contribute to poverty reduction now, including for increasing resilience to current impacts of environmental shocks, or when the investments done now have serious intertemporal ‘lock-in’ problems so that they have implications also for when climate change bites by 2050. In our conclusions, we offer a series of concrete principles to judge development spending. |
| Keywords: | Green growth, poverty, environmental externalities |
| JEL: | O44 Q01 Q54 F35 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:csa:wpaper:2014-24&r=all |
| By: | Nanthakumar, Loganathan; Shahbaz, Muhammad; Taha, Roshaiza |
| Abstract: | This paper explores how carbon taxation and economic growth affect environment hazards in Malaysia using time series data over the period of 1974-2010. We applied cointegration and causality approaches to determine long term and the direction of causal relationship between these variables. Based on the results, we found the cointegration relationship between the variables. Furthermore, we noted that Kuznets’ theory i.e. inverted-U shaped curve between economic growth and CO2 emissions is valid for Malaysia but the carbon taxation policy is ineffective to control CO2 emissions. The causality analysis revealed that there is bidirectional relationship is found between carbon tax and CO2 emissions. Economic growth Granger causes CO2 emissions and carbon tax is Granger cause of economic growth. To enhance the awareness on pollution issues governments should rely on alternative instruments, which may give benefit not only to taxpayers but also to reduce pollution, which is the pivotal issue to be tackle globally. |
| Keywords: | economic growth, environment hazards |
| JEL: | C1 |
| Date: | 2014–06–16 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:56843&r=all |
| By: | Honma, Satoshi |
| Abstract: | This study analyzes environmental efficiency, and its determinants, for 98 countries in terms of four typical air pollutants—SO2, NOx, particulate matter 10 micrometers or less in diameter (PM10), and CO2—for the period 1970–2008. For this purpose, I propose a super slacks-based measure and data envelopment analysis (DEA) model with undesirable outputs—which has higher discriminating power than previous DEA efficiency indices, modifying the ones proposed in preceding articles. Furthermore, I analyze the determinants of environmental efficiency in association with the environmental Kuznets curve hypothesis and the pollution haven hypothesis. The panel regression results reveal that there is no Kuznets-type relationship between environmental efficiency and per-capita income. The impact of trade on environmental efficiency depends on relative per-capita income and capital–labor ratio, i.e., the higher the relative income and the lower the capital–labor ratio, the higher the environmental efficiency. Overall, the elasticities of trade openness for NOx, PM10, and CO2 are significantly negative for an average country in the sample. |
| Keywords: | Data envelopment analysis; Environmental efficiency; Environmental Kuznets curve; Pollution haven hypothesis; Super efficiency |
| JEL: | O13 Q53 Q54 Q56 |
| Date: | 2014–06–28 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:56950&r=all |
| By: | Marie-Sophie Hervieux (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Université de Nantes : EA4272); Pierre-Alexandre Mahieu (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Université de Nantes : EA4272) |
| Abstract: | Since the early 90', many articles have been published on Environmental Kuznets Curve (EKC), especially empirical articles dealing with CO2. In our paper, we provide a detailed review of the empirical articles dealing with CO2 that were published in 2012 and 2013 in ISI Web of Knowledge. Our review, which is based on 41 studies, reports many information, such as the outcome of the study or the econometric procedure employed. Our review can be useful for several purposes, such as to perform a meta-analysis or to test the EKC. |
| Keywords: | Environmental Kuznets Curve ; Carbon dioxide |
| Date: | 2014–06–19 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01010243&r=all |
| By: | Kurt A. Ackermann (Chair of Decision Theory and Behavioral Game Theory, ETH Zurich); Eva Fleiß (Institute of Systems Sciences, Innovation and Sustainability Research, Karl-Franzens-University Graz); Jürgen Fleiß (Institute of Statistics and Operations Research, Karl-Franzens-University Graz); Ryan O. Murphy (Chair of Decision Theory and Behavioral Game Theory, ETH Zurich); Alfred Posch (Institute of Systems Sciences, Innovation and Sustainability Research, Karl-Franzens-University Graz) |
| Abstract: | The literature shows a significant correlation between people’s concerns for others and their concerns for the environment. However, these social and environmental considerations were commonly measured by means of attitude questionnaires that were not incentivized and did not readily facilitate a direct comparison of the results. In the present experiment, we employed a consistent incentivized method to assess subjects’ social value orientations (SVO) and their concerns for the environment and humanitarian aid. Subjects make real decisions with real consequences regarding the distribution of resources while the experimental design ensured comparability of subjects’ social preferences and their willingness to make tradeoffs for different environmental and social causes. We found that social and environmental value orientations are intertwined to some extent, but that the nature of the association is not simple. Nonetheless the results clearly show that people are generally willing to pay more for the benefit of people in need, compared to abstract environmental causes. We conclude that interventions to nudge people towards environment-friendly behavior may have a greater impact if human suffering as resulting from global warming is made salient. |
| Date: | 2014–06–17 |
| URL: | http://d.repec.org/n?u=RePEc:grz:wpsses:2014-02&r=all |
| By: | Finus, M; Pintassilgo, Pedro; Ulph, Alistair |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:eid:wpaper:39840&r=all |
| By: | Adoho, Franck; Wodon, Quentin |
| Abstract: | Migration is one of several strategies used by households to respond to changes in climate and environmental conditions as well as extreme weather events. Yet while there is a burgeoning literature on climate change and migration and other adaptation strategies worldwide, the evidence available for the MENA region remains limited, in part because of a lack of survey and other data. This chapter is based on new data collected in 2011 in Algeria, Egypt, Morocco, Syria, and Yemen in two climate affected areas per country. The chapter provides an analysis of the impact of changes in weather patterns and the environment (as perceived by households) on migration, both by members residing in the households (temporary migration) and former household members who have left (permanent migration). The results suggest that perceptions of negative changes in weather patterns and the environment are indeed associated with a higher likelihood of migrating temporarily or permanently. |
| Keywords: | Climate change, Migration, Middle East and North Africa |
| JEL: | R23 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:56935&r=all |
| By: | Adoho, Franck; Wodon, Quentin |
| Abstract: | What are the coping mechanisms and adaptation strategies (apart from migration which is discussed in part III of the study) that households use in order to respond to changes in climate and environmental conditions? Are households forced to sell assets or take other emergency measures in cases of losses due to extreme weather events? Beyond short term emergency responses, are they taking measures to adapt to changing conditions? This paper is based on new household survey data collected in 2011 in Algeria, Egypt, Morocco, Syria, and Yemen, documents the coping and adaptation strategies of households as well as government and community responses to changes in weather patterns and the environment. Overall, the results suggest that coping and adaptation strategies used by households to deal with shocks are diverse, but still limited, as are the community and government responses that could help them. |
| Keywords: | Climate change, Weather Shocks, Coping, Adaptation, Middle East and North Africa |
| JEL: | I31 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:56934&r=all |
| By: | Nabila Arfaoui (University of Nice Sophia Antipolis, France; GREDEG CNRS) |
| Abstract: | Numerous theoretical and empirical studies show a positive correlation between eco-innovation and environmental regulation. However, very few analyses explain how environmental policies drive eco-innovation. This paper tries to fill this gap by studying eco-innovation-friendly mechanisms in the way the European REACH (Registration, Evaluation, Authorization and restriction of Chemicals) regulation has been designed. The aim of REACH, which entered into force in 2007 is "to ensure a high level of protection of human health and the environment while improving competitiveness and innovation", which makes it an appropriate subject for analysis of the relation between regulation and eco-innovation. The study uses data from a unique original survey, which identifies innovation-friendly mechanisms in relation with the push/pull effect of regulation on environmental innovations. Our results show that extended responsibility of producers has a positive impact to "pull demand" toward environmental innovation. Moreover the obligation to exchange information along the supply chain and the process of authorization play an important role to “push” environmental innovation. |
| Keywords: | Eco-innovation, REACH, Regulatory Push/Pull effect, Econometric modeling |
| JEL: | Q55 Q58 C51 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2014-19&r=all |
| By: | Leuven, Edwin (Dept. of Economics, University of Oslo); Plug, Erik (University of Amsterdam); Marte, Rønning (Statistics Norway, Research Department) |
| Abstract: | Using Norwegian cancer registry data we study twin and non-twin siblings to decompose variation in cancer at most common sites and cancer mortality into a genetic, shared environment and individual (unshared environmental) component. Regardless the source of sibling variation, our findings indicate that genes dominate over shared environment in explaining relatively more of the variation in cancer at most common cancer sites (but lung and skin cancer) and cancer mortality. The vast majority of the variation in cancer and cancer mortality, however, is explained by individual (unshared environmental) factors. |
| Keywords: | Cancer; Twins; Heritability; Environment; |
| JEL: | I12 J62 |
| Date: | 2014–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:osloec:2014_005&r=all |
| By: | Nicolas R. Ziebarth; Maike Schmitt; Martin Karlsson |
| Abstract: | This study comprehensively assesses the immediate effects of extreme weather conditions and high concentrations of ambient air pollution on population health. For Germany and the years 1999 to 2008, we link the universe of all 170 million hospital admissions, along with all 8 million deaths, with weather and pollution data reported at the day-county level. Extreme heat significantly increases hospitalizations and deaths. Extreme cold has a negligible effect on population health. High ambient PM10, O3 and NO2 concentrations are associated with increased hospitalizations and deaths, particularly when ignoring simultaneous weather andpollution conditions. We find strong evidence for "harvesting", and that the instantaneous heat-health relationship is only present in the short-term. We calculate that one "Hot Day" with a temperature higher than 30 ° C (86 ° F) triggers adverse health effects valued between EUR 0.07 and EUR 0.52 per resident. |
| JEL: | I12 I18 Q51 Q53 Q54 Q58 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp646&r=all |
| By: | Joseph, George; Wodon, Quentin; Liverani, Andrea; Blankespoor, Brian |
| Abstract: | Concerns abound about the potential impact of climate change on future migration, especially in the Middle East and North Africa, one of the regions that is likely to suffer the most from climate change. Yet it is not clear whether so far climate patterns have been a key driver of internal migration in countries such as Yemen, despite the pressures created by water scarcity. By combining data from Yemen’s latest census and a weather database as well as other geographic information, we analyze the determinants of past net internal migration rates. Next, using future climate change scenarios, we predict the potential impact of rising temperatures on future net internal migration rates. The results suggest that while climate does have an impact on net internal migration rates, this impact is limited, so that on the basis of past patterns of climate and migration, rising temperature may not have a large impact on future net internal migration. |
| Keywords: | Climate change, Migration, Yemen |
| JEL: | R23 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:56937&r=all |
| By: | Wodon, Quentin; Burger, Nicholas; Grant, Audra; Liverani, Andrea |
| Abstract: | Climate change is a major source of concern in the Middle East and North Africa (MENA) region, and migration is often understood as one of several strategies used by households to respond to changes in climate and environmental conditions, including extreme weather events. Other coping and adaptation strategies include changing the household’s sources of livelihood, and selling assets or taking other emergency measures in cases of losses due to extreme weather events. Yet while there is a burgeoning literature on climate change and migration and other adaptation strategies worldwide, the evidence available for the MENA region remains limited, in part because of a lack of survey and other data. This chapter is based in large part on new data collected in 2011 in Algeria, Egypt, Morocco, Syria, and Yemen. Household surveys were implemented in two climate affected areas in each country. In addition, qualitative focus groups were also implemented in both urban and rural areas. Finally, complementary work was completed using existing data sources for Morocco and Yemen. The chapter provides a summary of some of the main findings from these various sources of data, focusing on household perceptions about climate change and extreme weather events, migration, other household coping and adaptation strategies, and government and community responses. Overall, households do perceive important change in the climate, and many have been affected by extreme weather events with resulting losses in income, crops, livestock, or fish catchment. The coping and adaptation strategies used by households to deal with shocks are diverse but limited, as are the community and government programs which could help households better cope with and adapt to climate change. In terms of migration, in the areas affected by climate change and weather shocks, the analysis suggests that climate factors may account for between one tenth and one fifth of the overall level of migration observed today, but this is likely to increase as climatic conditions continue to deteriorate. While migrants appreciate the opportunities that migration offer, their living conditions and ability to be well integrated in their areas of destination is far from being guaranteed. |
| Keywords: | Climate change, Migration, Adaptation, Middle East and North Africa |
| JEL: | R23 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:56927&r=all |
| By: | Jaime de MELO (Ferdi); Mariana VIJIL (FERDI) |
| Abstract: | At the Davos forum of January 2014, a group of 14 countries pledged to launch negotiations on liberalising trade in ‘green goods’ (also known as`environmental goods’(EGs)), focussing on the elimination of tariffs for an ‘APEC list’ of 54 products. The paper shows that the ‘Davos group’, with an average tariff of 1.8%, has little to offer as countries have avoided submitting products with tariffs peaks for tariff reductions. Even if the list were extended to the 411 products on the ‘WTO list’, taking into account tariff dispersion, their tariff structure on EGs would be equivalent to a uniform tariff of 3.4%, about half the uniform tariff-equivalent for non EG products. Enlarging the number of participants to low-income countries might be possible as, on average, their imports would not increase by more than 8 percent. However, because of the strong complementarities between trade in Environmental Goods and trade in Environmental Services, these should also be brought to the negotiation table even though difficulties in reaching agreement on their scope are likely to be great. |
| JEL: | F18 Q56 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:fdi:wpaper:1636&r=all |
| By: | L. Lambertini; J. Poyago-Theotoky; A. Tampieri |
| Abstract: | We evaluate the relationship between competition and innovation in an industry where production is polluting and R&D has the aim to reduce emissions. We build up an oligopoly model where n firms compete in quantities and decide their investment in green R&D. When environmental taxation is exogenous, the investment in green R&D always increases with the number of firms in the industry. We analyse next the case where taxation is endougenously determined by a regulator with the aim to maximise social welfare. An inverted-U relationship exists under reasonable conditions, and it is driven by the presence of spillovers. |
| JEL: | Q55 Q56 O30 L13 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:bol:bodewp:wp951&r=all |
| By: | Patrice Bougette (University of Nice Sophia Antipolis, France; GREDEG CNRS); Christophe Charlier (University of Nice Sophia Antipolis, France; GREDEG CNRS) |
| Abstract: | Faced with the energy transition imperative, governments have to decide about public policy to promote renewable electrical energy production and to protect domestic power generation equipment industries. For example, the Canada - Renewable energy dispute is over Feed-in tariff (FIT) programs in Ontario that have a local content requirement (LCR). The EU and Japan claimed that FIT programs constitute subsidies that go against the SCM Agreement, and that the LCR is incompatible with the non-discrimination principle of the World Trade Organization (WTO). This paper investigates this issue using an international quality differentiated duopoly model in which power generation equipment producers compete on price. FIT programs including those with a LCR are compared for their impacts on trade, profits, amount of renewable electricity produced, and welfare. When 'quantities' are taken into account, the results confirm discrimination. However, introducing a difference in the quality of the power generation equipment produced on both sides of the border provides more mitigated results. Finally, the results enable discussion of the question of whether environmental protection can be put forward as a reason for subsidizing renewable energy producers in light of the SCM Agreement. |
| Keywords: | Feed-in tariffs, Subsidies, Local content requirement, Industrial policy, Canada - Renewable energy dispute, Trade policy |
| JEL: | F18 L52 Q42 Q48 Q56 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2014-20&r=all |
| By: | Mark Jacobsen; Jacob LaRiviere; Michael Price |
| Abstract: | We develop a model of the private provision of public goods in a world where agents face convex costs of provision. Consonant with prior empirical evidence, we introduce preference heterogeneity by allowing a subset of agents to exhibit pro-social behavior that reflects "green" preferences. We use the model to compare different policies to promote private provision of public goods such as environmental quality or energy conservation. Counter to the standard result, we find that technology standards are frequently preferred to price-based instruments. Extending the model to allow for both benefit and cost heterogeneity, we find that policy choice depends on the correlation between the two forms of heterogeneity. |
| JEL: | D03 D04 H41 Q48 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20266&r=all |
| By: | Adoho, Franck; Wodon, Quentin |
| Abstract: | What are the perceptions of households in the Middle East and North Africa Region regarding changes in the climate of the areas where they live? To what extent are households affected by extreme weather events such as droughts or floods? And who tends to suffer the most from such events when they occur? This chapter suggests answers to these questions on the basis of new household survey data collected in 2011 in Algeria, Egypt, Morocco, Syria, and Yemen. The household surveys were implemented in two climate affected areas in each country. Overall, households in these areas do perceive important changes in the climate, for example with droughts becoming more frequent. While many households declare being affected by extreme weather events, with resulting losses in income, crops, livestock, or fish catchment, this is especially the case of the poor who appear to suffer the most from extreme weather events. |
| Keywords: | Climate Change, Weather Shocks, Impact on households, Middle East and North Africa |
| JEL: | I31 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:56931&r=all |
| By: | Diekert , Florian (Dept. of Economics, University of Oslo); Lund , Kristen (Dept. of Biosciences); Schweder, Tore (Dept. of Economics, University of Oslo) |
| Abstract: | Understanding the eect of introducing property rights to natural resources is central in economics, but empirical analysis is frustrated by the complexity of socioecological systems. We construct a detailed bio-economic model of the Norwegian coastal cod shery, which was closed after 1989, to isolate the eect of environmental variability. We project stock and harvest forward in the counterfactual scenario of no intervention, showing that the policy had only a small positive impact on Stock biomass, but a pronounced positive eect on pro ts. The main driver, uncovered by index-number decomposition, is savings in fuel and labor costs. |
| Keywords: | Open access; Property rights; Quasi-experiment; Counterfactual control; Bio-economic modeling; Productivity; North-East Arctic cod; |
| JEL: | C43 D23 Q22 Q28 |
| Date: | 2014–03–18 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:osloec:2014_007&r=all |
| By: | Walsh, Darragh; O'Sullivan, Kevin; Lee, William; Devine, Mel |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:rb2014/1/4&r=all |
| By: | Wodon, Quentin; Liverani, Andrea |
| Abstract: | Climate change and migration are major concerns in the MENA region, yet the empirical evidence on the impact of climate change and extreme weather events on migration remains limited. Information is broadly lacking on how households in vulnerable areas perceive changes in the climate, how they are affected by extreme weather events, whether they benefit from community and government programs to help them cope with and adapt to a changing climate, and how these conditions influence the decision of household members to migrate, either temporarily or permanently. This introductory chapter summarizes briefly the main results of the study which relied on existing data as well as focus groups and new household surveys collected in 2011 in Algeria, Egypt, Morocco, Syria, and Yemen. The results suggest that households do perceive important changes in the climate, and that many households are being affected by extreme weather events resulting in losses in income, crops, and livestock. The coping and adaptation strategies used by households to deal with weather shocks are diverse, but also limited, with most households not able to recover from the negative impact of weather shocks. The ability of community level responses and government programs to support households is also very limited. Finally, while climate change is not today the main driver of migration flows, it does appear to contribute to these flows, and worsening climatic conditions are likely to exacerbate future migration flows. |
| Keywords: | Clinate Change, Migration, Middle East and North Africa |
| JEL: | R23 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:56926&r=all |
| By: | Pollmann, Olaf; Podruzsik, Szilárd; Fehér, Orsolya |
| Abstract: | Current energy systems are in most instances not fully working sustainably. The provision and use of energy only consider limited resources, risk potential or financial constraints on a limited scale. Furthermore, the knowledge and benefits are only available for a minor group of the population or are outright neglected. The availability of different resources for energy purposes determines economic development, as well as the status of the society and the environment. The access to energy grids has an impact on socio-economic living standards of communities. This not fully developed system is causing climate change with all its related outcomes. This investigation takes into consideration different views on renewable energy systems — such as international discussions about biomass use for energy production, “fuel versus food”, biogas use — and attempts to compare major prospects of social acceptance of renewable energy in Europe and Africa. Can all obstacles to the use of renewable energy be so profound that the overall strategy of reducing anthropogenic causes of climate change be seriously affected? |
| Keywords: | renewable energy, energy production, future technology, society |
| JEL: | D71 O13 Q01 R11 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:cvh:coecwp:1607&r=all |
| By: | Lauriane Mouysset (ECO-PUB - Economie Publique - Institut national de la recherche agronomique (INRA) : UMR0210 - Institut National Agronomique Paris-Grignon) |
| Abstract: | The future of agriculture constitutes a major challenge to the achievement of sustainable development. There are new perspectives on greening(focusing on ecological objectives) and sustainability (combining both ecological and social goals). Academic papers rather study the ecological efficiency of agricultural public policies, while real public policies, such as in the European Common Agricultural Policy, examine both ecological and social considerations. The objective of this paper is to consider economic, social and ecological objectives within the design of agricultural public policies. Using a bio-economic model applied to France, we compare different optimal public strategies. We show that, when the biodiversity objectives are either very limited or very demanding, grassland subsidies are the best instruments from both green and sustainable points of view. However for medium objectives, reducing crops subsidies is the cheapest way to green the CAP, while subsidies on grasslands are the only strategy from a sustainability perspective. Our work highlights new trade-offs related to policy implementation, such as social acceptance or technical difficulties, and the spatial equity of performance among regions. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01011669&r=all |
| By: | Burger, Nicholas; Grant, Audra; Kups, Sarah; Rana, Yashodhara; Wodon, Quentin |
| Abstract: | This study aims to be relevant for the MENA region as a whole, but it focuses on five countries - Algeria, Egypt, Morocco, Syria, and Yemen, and in many (but not all) cases on specific geographic areas within each of the five countries. After a brief introduction, this chapter outlines the reasons that led to the choice of the five focus countries. Next, to provide contextual background for the study, the chapter provides an introductory discussion of climate and migration patterns in each of the five countries, and of the policy and institutional context in which discussions on climate change take place. |
| Keywords: | Climate change, Migration, Adaptation, Middle East and North Africa |
| JEL: | R23 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:56928&r=all |
| By: | Joseph, George; Wodon, Quentin; Blankespoor, Brian |
| Abstract: | There is evidence in the literature that migration and remittances tend to increase in response to climate shocks, so that both may function as coping mechanisms. It is not clear however whether remittances are likely to be higher in areas that suffer from poor climate in the absence of weather shocks. This chapter uses a nationally representative household survey for Yemen combined with weather data to measure remittance flows, both domestic and international, and assess the likelihood of households receiving remittances as well as the amounts received. We are interested in testing whether households living in less favorable areas in terms of climate (as measured through higher temperatures, lower rainfalls, more variability or seasonality in both, and larger differences in a given year between extreme temperatures) are more likely to benefit from remittances. The results suggest that this does not seem to be the case in Yemen. |
| Keywords: | Climate change, Remittances, Migration, Yemen |
| JEL: | R23 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:56939&r=all |
| By: | Grant, Audra; Burger, Nicholas; Wodon, Quentin |
| Abstract: | This chapter is based on qualitative focus group and in-depth interview data collected among rural residents and urban migrants in the five focus countries for this study. The chapter documents the relationship between climate change and internal human mobility as seen by the population, as well as some of the other adaptation strategies used by households to cope with a deteriorating climate. Rural residents are clearly aware of climate change. They perceive a shift in climactic conditions that affects their livelihood due to deteriorating agricultural conditions. Among households affected by climate change, migration appears to be more of a strategy of last resort than of first resort, although there are exceptions. For those who migrate to urban areas, obtaining a job as well as a proper dwelling is hard and further hindered by corruption and competition for limited employment opportunities. The obligation to send remittances also puts pressure on migrants. Yet, despite difficulties and pressures, the perceived benefits of migration in terms of the independence and opportunities afforded by urban life remain substantial. |
| Keywords: | Climate change, Weather shocks, Migration, Adaptation, Middle East and North Africa |
| JEL: | R23 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:56936&r=all |
| By: | Durmaz, Tunc (Dept. of Economics, Norwegian School of Economics and Business Administration) |
| Abstract: | I consider an economy with fossil fuel and renewable energy and energy storage, and search for the conditions that lead to welfare improvements when energy is stored. I then solve for the optimal decision rule and analyze the long-run tendencies of the economy-energy variables. The findings are threefold. First, energy storage is fostered by the convexity of the marginal utility (prudence), the marginal cost function for fossil fuel energy, and the degree of intermittency. Second, considering a low penetration of renewable energy to the power grid, energy storage is not welfare improving if the fossil fuel energy cost function is linear. Third, energy storage creates an added value to renewable energy investments when actively used. By showing the in uence that energy storage can have on energy generation and investment decisions, I hope that the current work can be in uential in a more generous treatment of energy supply in future energy-economy-climate models. |
| Keywords: | Energy storage; Fossil fuel energy; Renewable energy; Precautionary savings; Collocation method; Monte Carlo simulations. |
| JEL: | C61 C63 G31 Q21 Q41 Q42 |
| Date: | 2014–06–30 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nhheco:2014_018&r=all |
| By: | Joseph, George; Wodon, Quentin |
| Abstract: | This chapter uses matching techniques and a recent nationally representative household survey for Yemen combined with weather data to measure the impact of remittances, both domestic and international, on poverty and human development outcomes (school enrolment, immunization, and malnutrition). The estimations are carried both nationally and in areas with favorable and unfavorable climate. Remittances are found to have a statistically significant impact on many of the indicators, and this is especially the case for international remittances which tend to provide more resources to their beneficiaries. The impact of remittances on measures of poverty and malnutrition is also found to be stronger in districts that are affected by unfavorable climate (as measured through higher temperatures or lower levels of rainfall), while the impact of remittances on school enrollment is found to be stronger in areas with better climate. The results are consistent with households in the least favorable areas using their remittances to meet basic needs first, while households in better areas can use remittances flows for education investments. |
| Keywords: | Climate change, Migration, Remittances, Human Development, Poverty, Yemen |
| JEL: | R23 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:56517&r=all |
| By: | David Neumark; Jennifer Muz |
| Abstract: | “Business climate indexes” characterize state economic policies, and are often used to try to influence economic policy debate. However, they are also useful in research as summaries of a large number of state policies that cannot be studied simultaneously. Prior research found that business climate indexes focused on productivity and quality of life do not predict economic growth, while indexes emphasizing taxes and costs of doing business indicate that low-tax, low-cost states have faster growth of employment, wages, and output. In this paper, we study the relationship between these two categories of business climate indexes and the promotion of equality or inequality. We do not find that the productivity/quality-of-life indexes predict more equitable outcomes, although some of the policies underlying them suggest they might. We do find, however, that the same tax-and-cost related indexes that are associated with higher economic growth are also associated with increases in inequality. |
| JEL: | H71 J38 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20260&r=all |
| By: | Elvira Periac (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris); Sébastien Gand (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris); Jean-Claude Sardas (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris) |
| Abstract: | In the Public management debate on a post/beyond New Public Management phase, there has been a stream of research on public sector employees. Our paper investigates the role of public sector employees in the actual "government revival". Strategy as Practice appears as a particularly relevant framework to analyze how the study of the micro activity of public sector employees can enlighten our understanding of the making of the public policy strategy making. Our research question is: how do practitioners, middle managers but also employees without a managerial role, individually and as groups, contribute to strategy-making of public policies? On the basis of an in-depth case study in a public administration in charge of the implementation of environmental public policies, we argue that not only middle managers' agency is crucial to strategy-making but also that of employees. We also propose a complementary understanding of strategic agency as regulated and organized by the group through "areas of discussion". On this basis, we suggest that the way public sector employees operate in a context of government revival might be key to the reconfiguration of public action, and thus to the reconceptualization of public services. |
| Keywords: | Strategy as practice ; Agency ; Public Management ; Environmental policies ; Areas of discussion |
| Date: | 2014–07–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00969332&r=all |
| By: | Cong Nguyen, Minh; Wodon, Quentin |
| Abstract: | Do extreme weather events such as droughts or floods lead to migration away from the areas affected by these events? This chapter aims to provide an answer to that question for Morocco using a new nationally representative household survey implemented in 2009-10. The data suggest that around one in four households have been affected by weather shocks in the five years preceding the survey implementation. Droughts and floods are not directly identified by households as major reasons for migration, but insufficient agricultural revenue and a lack of agricultural employment as well as better employment opportunities at the place of destination are mentioned as reasons to migrate, and these are affected by adverse weather shocks. Furthermore, in regression analysis, after controlling for a wide range of individual and household characteristics, the probability of both temporary and permanent migration increases if the household has been affected by an adverse weather shock or the consequences thereof. Thus, while adverse weather events may not be the main driver of migration, they do contribute to it. |
| Keywords: | Climate change, Weather shocks, Migration, Morocco |
| JEL: | R23 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:56938&r=all |
| By: | Burger, Nicholas; Ghosh-Dastidar, Bonnie; Grant, Audra; Joseph, George; Ruder, Teague; Tchakeva, Olesya; Wodon, Quentin |
| Abstract: | A large part of this study is based on data collected in 2011 in five focus countries of the MENA region. In addition, other existing data sources were used as well, as documented in the various chapters that follow, but this need not be discussed in this chapter. This chapter documents the process followed and some of the choices made for new data collection, both quantitative and qualitative, for the study on climate change and migration in the MENA region. After a brief introduction, we explain the nature of the household survey questionnaire, what it enables us to document, as well as some of its limits. Next, we explain how the household survey sites were selected and how the samples were constructed in each of the five focus countries. We also provide a few comments on the challenges encountered during survey implementation. The chapter finally explains the process used for the focus group discussions and in-depth interview, as well as for the interviews with key informants conducted in each country. |
| Keywords: | Climate change, Migration, Adaptation, Middle East and North Africa |
| JEL: | R23 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:56929&r=all |
| By: | Giorgio Fabbri (EPEE, Université d’Evry-Val-d’Essonne (TEPP, FR-CNRS 3126)); Silvia Faggian (Università di Venezia “Ca’ Foscari”); Giuseppe Freni (University of Naples Parthenope) |
| Abstract: | The paper provides a continuous-time version of the discrete-time Mitra- Wan model of optimal forest management, where trees are harvested to maximize the utility of timber flow over an infinite time horizon. The available trees and the other parameters of the problem vary continuously with respect to both time and age of the trees, so that the system is ruled by a partial differential equation. The behavior of optimal or maximal couples is classified in the cases of linear, concave or strictly concave utility, and positive or null discount rate. All sets of data share the common feature that optimal controls need to be more general than functions, i.e. positive measures. Formulas are provided for golden-rule configurations (uniform density functions with cutting at the ages that solve a Faustmann problem) and for Faustmann poli- cies, and their optimality/maximality is discussed. The results do not always confirm the corresponding ones in discrete time. |
| Keywords: | Optimal harvesting problems, Forest Management, Measurevalued Control |
| JEL: | C61 C62 E22 D90 Q23 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:eve:wpaper:14-04&r=all |