|
on Environmental Economics |
|
Issue of 2015‒12‒01
thirty-one papers chosen by Francisco S. Ramos Universidade Federal de Pernambuco |
| By: | Jean-Pierre Amigues (Toulouse School of Economics (INRA and LERNA)); Gilles Lafforgue (Université de Toulouse, Toulouse Business School); Michel Moreaux (Toulouse School of Economics (IDEI and LERNA)) |
| Abstract: | Using a standard Hotelling model of resource exploitation, we determine the optimal energy consumption paths from three options: dirty coal, which is non-renewable and carbon-emitting; clean coal, which is also non-renewable but carbon-free thanks to carbon capture and storage (CCS); and solar energy, which is renewable and carbon-free. We assume that the atmospheric carbon stock cannot exceed an exogenously given ceiling. Taking into account learning-by-doing in CCS technology, we show the following results: i) Clean coal exploitation cannot begin before the outset of the carbon constrained phase and must stop strictly before the end of this phase; ii) The energy price path can evolve non-monotonically over time; and iii) When the solar cost is low enough, an unusual energy consumption sequence along which solar energy is interrupted for some time and replaced by clean coal may exist. |
| Keywords: | Clean Energy, Food Demand, Land Quality, Renewable Fuel Standards, Transportation |
| JEL: | Q24 Q32 Q42 |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2015.20&r=env |
| By: | Ben Jebli, Mehdi |
| Abstract: | This study investigates the dynamic causal links between carbon dioxide (CO2) emissions, real Gross Domestic Product (GDP), combustible renewables and waste consumption, and maritime and rail transport in Tunisia spanning the period 1980-2011. The autoregressive distributed lag (ARDL) approach and Granger causality tests are employed to examine the short- and long-run relationships between variables. The empirical results suggest a bidirectional short-run causality between CO2 emissions and maritime transport, and a unidirectional causality running from real GDP, combustible renewables and waste consumption, rail transport to CO2 emissions. The long-run estimates reveal that real GDP contributes to the decrease of CO2 emissions, while combustible renewables and waste consumption and maritime and rail transport have a positive impact on emissions. Our policy recommendation is that Tunisia should use more combustible renewables and waste energy and increase the number of passenger’s rail and maritime transport in order to motivate economic activities. However, the level of renewable energy required to reduce emissions caused by transport sector still very weak. |
| Keywords: | Combustible renewables and waste; Transport; Autoregressive distributed lag model; Cointegration; Granger causality; Tunisia. |
| JEL: | L9 |
| Date: | 2015–11–24 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:68038&r=env |
| By: | Corey Allan (Motu Economic and Public Policy Research); Suzi Kerr (Motu Economic and Public Policy Research); Campbell Will (Motu Economic and Public Policy Research) |
| Abstract: | We test whether New Zealand households have become greener consumers by estimating environmental Engel curves (EECs), which describe the relationship between household income and the pollution embodied in a household’s consumption bundle. Our pollutants of interest are greenhouse gases (GHGs). To our knowledge, this is the first paper that tests for a change over time in climate change-related household behaviour. We calculate the greenhouse gases embodied in household consumption bundles using standard environmental input-output (IO) analysis combined with detailed household expenditure data from the 2006/07 and 2012/13 waves of the New Zealand Household Economic Survey. Consistent with international literature, we find that emissions increase less-than-proportionately with household expenditure (a proxy for permanent income). There is significant variation in expenditure elasticities across consumption categories; emissions from household energy are unresponsive to household expenditure, while emissions from transport are highly responsive to expenditure. Household expenditure and composition explain the majority of the cross-sectional variation in household emissions. We conduct a simple test for changes over time in household consumption patterns that affect emissions, taking price changes into account. We find that, controlling for a rich set of household characteristics, household emissions were marginally lower on average in the 2012/13 survey than the 2006/07 survey. This result is largely driven by a reduction in emissions from household energy. We also find that wealthier households had a smaller reduction in emissions between surveys. Our results suggest this is due to higher levels of international air travel by wealthier households. |
| Keywords: | Climate change; greenhouse gas emissions; household behaviour; consumption; input–output model |
| JEL: | Q56 Q57 D12 Q54 D57 |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:mtu:wpaper:15_06&r=env |
| By: | Halkos, George; Psarianos, Iacovos |
| Abstract: | This study begins with an exposition of basic principles of the theory of Optimal Control as this is used in the development of the theory of Economic Growth. Then, a brief presentation of the Neoclassical Model of Economic Growth follows and two applications are presented. In the first, optimal control techniques are used, in the context of neoclassical growth, to maximize the representative household’s total intertemporal welfare. In the second, the same problem is posed with two additional variables that affect welfare in opposing ways: pollution and abatement expenditures. In both applications, the optimal steady-state conditions are derived. This allows for a preliminary comparison of the resulting balanced growth paths under the criterion of welfare maximization with and without environmental externalities. Finally, using a balanced panel data of 43 countries and for the time period 1990-2011 we test the validity of including the environment in the neoclassical growth model approximating pollution abatement with the electricity production from renewable sources and pollution with carbon dioxide emissions. With the help of adequate econometric panel data methods we test the validity of the environmental Kuznets curve hypothesis for the full sample, as well as for the OECD and non-OECD countries |
| Keywords: | Economic Growth; Physical Capital; Technological Progress; Environment; Pollution. |
| JEL: | C60 C61 C62 O41 O44 Q56 Q58 |
| Date: | 2015–11–24 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:68050&r=env |
| By: | Bowen Zhou (Graduate School of Business Administration, Kobe University); Michiyuki Yagi (Graduate School of Business Administration, Kobe University); Katsuhiko Kokubu (Graduate School of Business Administration, Kobe University) |
| Abstract: | This study aims to empirically examine how environmental efficiency related to GHG emissions is affected by corporate governance and activities. This study uses data from CDP (former Carbon Disclosure Project) where the observations are 686 firms worldwide in 2013. As proxy for the environmental efficiency, this study adopts GHG emissions per employee. As independent variables, this study uses dummy variables made from CDP questionnaire. Regarding the corporate governance, this study finds that the amount of greenhouse gas emissions per employee is low (i.e., efficient) when direct responsibility for climate change is taken by individual/sub-set of the board and other and senior manager/officer. However, when companies engage directly or through trade associations on climate change, the companies are considered to be less efficient than other companies. On the other hand, regarding corporate activities, this study finds that environmentally inefficient companies (i.e., more greenhouse gas emissions per employee) are likely to participate in emissions trading schemes, take a verification/assurance status that applies to firm’s Scope 3 emissions at the first year, and engage with customers. |
| Keywords: | climate change, corporate governance, corporate activity, CDP, environmental efficiency |
| JEL: | G30 Q54 Q56 |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:kbb:dpaper:2015-27&r=env |
| By: | Phoebe Koundouri; P. Ker Rault; V. Pergamalis; V. Skianis; I. Souliotis |
| Abstract: | The development of theWater Framework Directive aimed to establish an integrated framework of water management at European level. This framework revolves around inland surface waters, transitional waters, coastal waters and groundwaters. In the process of achieving the environment and ecological objectives set fromthe Directive, the role of economics is put in the core of thewatermanagement. An important feature of the Directive is the recovery of total economic cost of water services by all users. The total cost of water services can be disaggregated into environmental, financial and resource costs. Another important aspect of the directive is the identification of major drivers and pressures in each River Basin District.We describe a methodology that is aiming to achieve sustainable and environmental and socioeconomic management of freshwater ecosystem services. The EcosystemServices Approach is in the core of the suggested methodology for the implementation of a more sustainable and efficientwater management. This approach consists of the following three steps: (i) socio-economic characterization of the River Basin area, (ii) assessment of the current recovery of water use cost, and (iii) identification and suggestion of appropriate programs of measures for sustainablewatermanagement over space and time. Thismethodology is consistent with a) the economic principles adopted explicitly by theWater Framework Directive (WFD), b) the three-step WFD implementation approach adopted in the WATECO document, c) the Ecosystem Services Approach to valuing freshwater goods and services to humans. Furthermore, we analyze how the effects ofmultiple stressors and socio-economic development can be quantified in the context of freshwater resources management.We also attempt to estimate the value of four ecosystemservices using the benefit transfer approach for the Anglian River Basin, which showed the significance of such services. |
| Keywords: | sustainable river management; total economic value; ecosystem services approach; integrated methodology; WFD; value transfer method |
| JEL: | J1 |
| Date: | 2015–07–17 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:64458&r=env |
| By: | Ben Jebli, Mehdi; Ben Youssef, Slim |
| Abstract: | This paper uses the vector error correction model (VECM) and Granger causality tests to investigate short and long-run relationships between per capita carbon dioxide (CO2) emissions, real gross domestic product (GDP), renewable and non-renewable energy consumption, trade openness ratio and agricultural value added (AVA) in Tunisia spanning the period 1980-2011. The Johansen-Juselius test shows that all our considered variables are cointegrated. Short-run Granger causality tests reveal the existence of bidirectional causalities between AVA and CO2 emissions, and between AVA and trade; unidirectional causalities running from non-renewable energy and output to AVA and to renewable energy, and from CO2 emissions to renewable energy. Interestingly, there are long-run bidirectional causalities between all considered variables. Our long-run parameters estimates show that non-renewable energy, trade and AVA increase CO2 emissions, whereas renewable energy reduces CO2 emissions. In addition, the inverted U-shaped environmental Kuznets curve (EKC) hypothesis is not supported. Our policy recommendations are to increase international economic exchanges because this gives new opportunities to the agricultural sector to develop and to benefit from renewable energy technology transfer. Subsidizing renewable energy use in the agricultural sector enables it to become more competitive on the international markets while polluting less and contributing to combat global warming. |
| Keywords: | Renewable energy; Agriculture; Trade; Granger causality; Tunisia. |
| JEL: | C33 F14 Q1 Q42 Q54 |
| Date: | 2015–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:68018&r=env |
| By: | Amponsah, Lawrence; Kofi Hoggar, Glory; Yeboah Asuamah, Samuel |
| Abstract: | The objective of the paper is to contribute to the body of knowledge in the area of climate change and agriculture by examining the effect of carbon dioxide concentration (CO2) on cereal yield using autoregressive distributed lag models (ARDL). The research is based on quantitative, descriptive and cross-sectional research using secondary data obtained from World Bank data base for the period of 1961-2010. The co-integration test indicates the series are co-integrated. The results on the long run and shorts run elastically co-efficient indicate that there is significant negative link between CO2 and cereal yield. There significant positive long run and short run link between cereal yield and income (proxied by real gross domestic product). Policy makers and agriculture scientists and environmental scientists should put in place policies to reduce atmospheric temperature increase and pollution to benefit from CO2 fertilization in order to ensure food security. The findings indicate that income (proxied by real gross domestic product) positively affect cereal yield. The link between CO2 and cereal production should be examine in future studies current study considered cereal yield. |
| Keywords: | Climate change; CO2; real gross product; cereal yield |
| JEL: | Q54 Q56 Q57 Q58 |
| Date: | 2015–02–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:68051&r=env |
| By: | Andrea Baranzini (Haute Ecole de Gestion Genève, University of Apllied Sciences Western Switzerland); Jeroen van den Bergh (Institute of Environmental Science annd Technology (UAB); ICREA; Institute of Environmental Studies & Faculty of Economics and Business Administration (LSE)); Stefano Carattini (Haute Ecole de Gestion Genève, University of Apllied Sciences Western Switzerland; Grantham Research Institute on Climate Change and the Environment (LSE)); Richard Howarth (Environmental Studies Program, Dartmouth College); Emilio Padilla (Department of Applied Economics (UAB)); Jordi Roca (Faculty of Economics and Business (UB)) |
| Abstract: | The idea of a global carbon price has been a recurrent theme in debates on international climate policy. Discarded at the Conference of Parties (COP) of Copenhagen in 2009, it remained part of deliberations for a climate agreement in subsequent years. Unfortunately, there is still much misunderstanding about the reasons for implementing a global carbon price. As a result, ideological and political resistance against it prospers. Here we present the main arguments in favor of a carbon price to stimulate a fair and well-informed discussion about climate policy instruments. This includes arguments that have received surprisingly little attention so far. It is stressed that a main reason to use carbon pricing is environmental effectiveness, so not only economic efficiency (including the special case of cost-effectiveness). In addition, we provide ideas on how to implement a uniform global carbon price, whether using a carbon tax or emissions trading. |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:uab:wprdea:wpdea1507&r=env |
| By: | Klaus-Bernhard Michel |
| Abstract: | Over the last few decades, production processes have become increasingly fragmented: they are divided into ever smaller parts considered as separate activities, which are then spread over various locations in different countries. In other words, value chains for many products are becoming global. This implies that inputs into the production process are sourced from both local and foreign suppliers. The latter mode of sourcing is commonly referred to as offshoring. Expressed as the share of imported in total intermediates, offshoring has grown relatively fast in the recent past. Moreover, its scope has been extended as it increasingly encompasses not only manufacturing but also service activities. A typical example for the former is the sourcing from abroad of parts and components for car assembly. While offshoring of manufacturing activities has been occurring since long and has been largely facilitated by trade liberalisation, the offshoring of service activities such as the provision of accounting or call centre services is a more recent phenomenon that has been fostered by the increased tradability of such services.<p>With the increasing scale and scope of offshoring, it becomes crucial to get a grasp of its drivers as well as the gains and threats associated with it. The latter are the focal point of the public and academic discussion around offshoring, in particular the potential threats for workers in developed economies. Typical questions that are being raised are whether offshoring leads to job losses in developed countries and whether it favours certain categories of workers and is to the disadvantage of others. These threats are directly linked to the motivations for engaging into offshoring. In this respect, wage costs play a prominent role. But other factors may also influence offshoring decisions, e.g. regulations, in particular those regarding the environment. Last but not least, offshoring may also entail gains for developed economies through the improvements in the efficiency of production. In this PhD thesis, several causes and consequences of offshoring are examined empirically for Belgium.<p>The first issue that is investigated is whether offshoring of materials and business services affects industry-level employment. An improved offshoring intensity measure is introduced. It is a volume measure of the share of imported intermediates in output split into materials and business services and according to the country of origin of imports, i.e. high-wage and low-wage countries. Estimations of static and dynamic industry-level labour demand equations augmented by offshoring intensities do not reveal a significant impact of either materials or business services offshoring on total employment for Belgium. This result holds for both the manufacturing sector and the service sector and it proves robust to splitting the manufacturing sector into high-technology and low-technology industries.<p>These results raise the question whether there are actually productivity gains from offshoring. Therefore, estimates of the impact of materials and business services offshoring on industry-level productivity in Belgium are presented. Two features of the analysis are new compared to the existing literature on this subject: the issue is examined separately for manufacturing and market services industries and the possibility of forward and backward spillovers from offshoring, i.e. that productivity gains from offshoring feed through to upstream and downstream industries, is investigated. Results show that materials offshoring has no effect on productivity, while business services offshoring leads to productivity gains in manufacturing. Furthermore, there is no evidence of either forward or backward spillovers from offshoring.<p>Despite the absence of an industry-level total employment effect, offshoring may alter the within-industry composition of employment. In this respect, a major concern is the worsening of the labour market position of low-skilled workers. This issue is addressed by providing evidence on the impact of offshoring on the skill structure of manufacturing employment in Belgium between 1995 and 2007. Offshoring is found to significantly lower the employment share of low-skilled workers. Its contribution to the fall in the employment share of low-skilled workers amounts to 35%. This is mainly driven by offshoring to Central and Eastern European countries. Business services offshoring also contributes significantly to the fall in the low-skilled employment share. As a complement to the existing literature, the widely used current price measure of offshoring is compared with a constant price measure that is based on a deflation with separate price indices for domestic output and imports. This reveals that the former underestimate the extent of offshoring and its impact on low-skilled employment. Finally, further results show that the impact of offshoring on low-skilled employment is significantly smaller in industries with a higher ICT capital intensity.<p>Furthermore, attention is drawn to environmental effects of offshoring by asking whether offshoring contributes to reducing air emissions from manufacturing. Indeed, since the mid-90’s, production-related air emissions in Belgian manufacturing have been reduced substantially. It can be shown that the pace of the reduction has been fastest for domestic intermediates. The issue of whether offshoring has played a role in this reduction by replacing domestic intermediates by imported intermediates is widely debated. Here, a decomposition analysis is developed to measure the contribution of offshoring – the share of imported intermediates in total intermediates – to the fall in air emissions for domestic intermediates. Based on the results from this decomposition analysis, it is possible to calculate that 17% of the fall in greenhouse gas emissions, 6% of the fall in acidifying emissions and 7% of the fall in tropospheric precursor emissions in Belgian manufacturing between 1995 and 2007 can be attributed to offshoring.<p>Finally, emission intensities are also considered as a potential determinant of offshoring. An econometric approach for testing the pollution haven effect for imported intermediate materials is developed. The approach is new with respect to the existing literature on pollution havens through its specific focus on imports of intermediates. The test is embedded in a cost function framework from which a system of cost share equations for variable input factors is derived. The set of potential determinants of the demand for imported intermediate materials includes emission intensities for three types of air pollutants. Their impact constitutes a test of the pollution haven effect. The system of cost share equations is estimated by a within ISUR using data for the Belgian manufacturing sector. Results show some albeit relatively weak evidence of a pollution haven effect for imported intermediate materials.<p> |
| Keywords: | Business relocation; Offshore assembly industry; Délocalisations (Economie); Entreprises délocalisées; émissions de l'air; environnement; productivité; niveau de qualification; air emissions / Délocalisation; emploi; environment; productivity; Offshoring; skill; employment |
| Date: | 2014–06–19 |
| URL: | http://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/209302&r=env |
| By: | 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). |
| Keywords: | restoration cost; extended producer responsibility; marine habitat restoration; several liability; input-output model; Coase theorem |
| Date: | 2015–11–03 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:2013/220008&r=env |
| By: | Majah-Leah V. Ravago (University of the Philippines); James A. Roumasset (University of Hawaii) |
| Abstract: | We present an approach for determining dynamic baselines for Reducing Emissions from Deforestation and Degradation plus sequestration (REDD+) based on the efficient path of forest emissions absent carbon prices. We show that, unlike industrial emissions, baseline emission permits for forests should be negative. Positive entitlements for forest emissions are unnecessary and may be ineffective in the absence of additional governance mechanisms. A numerical illustration for the case of Indonesia shows that the potential gains from the efficiency-based approach are nearly twice those from conventional REDD+ proposals. |
| Keywords: | Governance; REDD+; deforestation; carbon emissions; sequestration; climate change |
| JEL: | Q23 Q28 Q54 Q57 |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:hai:wpaper:201515&r=env |
| By: | Yuchen Shen (Graduate School of Business Administration, Kobe University); Mohammad Tazul Islam (Graduate School of Business Administration, Kobe University); Michiyuki Yagi (Graduate School of Business Administration, Kobe University); Katsuhiko Kokubu (Graduate School of Business Administration, Kobe University) |
| Abstract: | Climate change is an international environmental issue that has increasingly attracted business attention in the past decade because of its actual or potential strategic impact on many companies. This study aims to examine how risk and opportunity awareness is correlated with corporate management and strategy. This study obtains firm data from a questionnaire survey of CDP in 2013, and the data includes 899 observations for risk awareness and 827 observations for opportunity awareness in 64 countries and 20 industry groups. Using the data, this study empirically examines how firms’ management and strategy affect risk and opportunity awareness related to climate change in the regression analysis. By regression analysis, we find some types of corporate climate-related governances and strategies are related to risk and opportunity awareness. The regression result also shows that there seems to be few differences between the effectiveness of firms’ climate-related management on their business risk and opportunity awareness related to climate change. Corporate strategies such as setting emissions reduction targets, launching emissions reduction initiatives, participating emissions trading schemes, and originating/purchasing carbon credits are proved found to be beneficial for increasing the corporate risk and opportunity awareness |
| Keywords: | climate change; risk and opportunity awareness; CDP; corporate governance; supply chain activities |
| JEL: | M14 Q54 Q56 |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:kbb:dpaper:2015-26&r=env |
| By: | Mai Huong Hoang (Graduate School of Business Administration, Kobe University); Mohammad Tazul Islam (Graduate School of Business Administration, Kobe University); Michiyuki Yagi (Graduate School of Business Administration, Kobe University); Katsuhiko Kokubu (Graduate School of Business Administration, Kobe University) |
| Abstract: | With the purpose of promoting clean development in developing countries, as well as increasing mitigation toward global warming issue, efforts have been made between government and companies through implementing Clean Development Mechanism and Joint Credit Mechanism projects. This study targets at identifying the determinants of the financial and environmental outcomes of CDM and JCM pilot projects, focusing on host party, project type, and project status. The CDM project data is collected for 11 years (2004 – 2014) from the Institute of Global Environmental Strategies whereas the JCM pilot project data covers 2 years (2013 – 2014) from Global Environment Centre Foundation. Result of this study shows that regarding JCM pilot projects, project type is a crucial determinant for environmental outcome. Meanwhile, regarding CDM projects, statistically significant determinants of environmental outcome are host party, project type, and project status. In terms of CDM financial outcome, only project type and project status show significant effects. It implies that there is no need for considering which country to implement CDM projects if the target is financial outcome. Instead of that, if aiming at projects’ environmental outcome, for either CDM or JCM, it is necessary for companies to take project type/ sector into consideration. |
| Keywords: | Clean development mechanism; Joint crediting mechanism; Internal Rate of Return; greenhouse gas emissions; country and industry effects |
| JEL: | F21 O13 Q54 |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:kbb:dpaper:2015-25&r=env |
| By: | Gabriela Simonet; Julie Subervie; Driss Ezzine-De-Blas; Marina Cromberg; Amy Duchelle |
| Abstract: | We estimate the additional effects of a REDD+ pilot project offering Payments for Environmental Services to reduce deforestation by smallholders in the Brazilian Amazon. We collected original data from 181 individual farmers. We use DID-matching and find evidence that supports the parallel trend assumption. We estimate that an average of 4 ha of forest have been saved on each participating farm in 2014, at the expense of pastures versus croplands. This amounts to a decrease in the deforestation rate of about 50 percent. We find no evidence of leakage effects. Finally, we find that the project is cost-effective. |
| Keywords: | REDD+, Payments for environmental services, Brazilian Amazon, Treatments effects, Quasi-Experiment. |
| JEL: | Q23 Q57 D12 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:cec:wpaper:1514&r=env |
| By: | Robert C. Schmidt (Humboldt-Universitaet zu Berlin) |
| Abstract: | This paper analyzes the political economy of climate policy in a simple framework with asymmetric information between voters and politicians. Two parties are engaged in electoral competition and announce policy platforms. An environmental catastrophe (e.g., a tipping point in the climate system) is approaching with some probability that depends on the state of nature. Climate policy can reduce this probability. Each party receives a private signal about the true state of nature, whereas voters possess little information and only know the prior probability distribution. We analyze under what conditions parties can reveal their private signals truthfully to the voters under electoral competition, and when the implemented policy is optimal, given the available information. |
| Keywords: | electoral competition, signaling, climate catastrophe, voting, intuitive criterion |
| JEL: | D72 D83 Q54 |
| Date: | 2015–10–08 |
| URL: | http://d.repec.org/n?u=RePEc:bdp:wpaper:2015015&r=env |
| By: | Bénédicte Meurisse |
| Abstract: | The significant weight of CO2 emissions resulting from car use in the total of CO2 emissions is enough of a signal to set up policy tools aiming at reducing such emissions. This paper investigates the effects of setting a penalty on the purchase of high emitting cars (i.e. a Malus). With static comparative analyses of a basic model of consumer’s behaviour facing two alternatives: a clean and a dirty vehicles, we essentially find that a rebound effect does not necessarily accompany the reduction in the average fuel consumption per kilometre resulting from the implementation of a differentiated car purchase tax such as a Malus scheme. This is because the improvement of the fuel-efficiency is achieved thanks to a new distribution of vehicles over the fleet, and not solely thanks to a reduction of the vehicles’ fuel consumption. Thereby, it happens that we observe a rebound effect only under certain conditions pertaining to the characteristics of the vehicles that make up the fleet (i.e. their unit consumption and market price). We also show that, from the moment that a rebound effect occurs, the higher the amount of Malus, the higher the rebound effect. It implicitly means that because of the rebound effect, the higher the pricing scheme, the less efficient the purchase tax. |
| Keywords: | Car purchase decision, Car use, CO2 emissions, Rebound effect, Penalty on car purchase. |
| JEL: | D11 H31 Q58 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:cec:wpaper:1512&r=env |
| By: | Kundu, Nobinkhor |
| Abstract: | Bangladesh will achieve considerable success in acceleration of economic growth of course need for sustainable renewable energy for development. At the present Government of Bangladesh takes the different financing models that have been developed and tested for renewable energy projects, especially solar energy, in urban and rural communities and energy efficiency improvement projects. Logistic regressions have been presented with the dependent variable as an indicator of the probability generates daily solar energy performance. In analysis, primary data and found that all the explanatory variables have a significant impact on the log of daily generates solar energy performance, whose p-value is statistically significant. When successful with these new approaches, the government should also be providing support for the thriving solar energy and energy efficiency technology projects for sustainable renewable energy development in Bangladesh. |
| Keywords: | Renewable Energy, Energy Efficiency, Sustainable Development, Solar Energy |
| JEL: | Q26 Q42 Q56 |
| Date: | 2014–07–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:68084&r=env |
| By: | Roman Mendelevitch; Pao-Yu Oei |
| Abstract: | This paper presents a general electricity-CO2 (ELCO) modeling framework that is able to simulate interactions of the energy-only market with different forms for national policy measures. We set up a two sector model where players can invest into various types of generation technologies including renewables, nuclear and Carbon Capture, Transport, and Storage (CCTS). For a detailed representation of CCTS we also include industry players (iron and steel as well as cement), and CO2 transport and CO2 storage including the option for CO2 enhanced oil recovery (CO2-EOR). The players maximize their expected profits based on variable, fixed and investment costs as well as the price of electricity, CO2 abatement cost and other incentives, subject to technical and environmental constraints. Demand is inelastic and represented via a selection of type hours. The model framework allows for regional disaggregation and features simplified electricity and CO2 pipeline networks. The model is balanced via a market clearing for the electricity as well as CO2 market. The equilibrium solution is subject to constraints on CO2 emissions and renewable generation share. We apply the model to a case study of the UK Electricity Market Reform to illustrate the mechanisms and potential results attained from the model. |
| Keywords: | Energy policy, electricity, CO2, CCS, UK, EOR, modeling |
| JEL: | C61 L94 O33 Q42 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1521&r=env |
| By: | Kwakwa, Paul Adjei |
| Abstract: | The role of electricity to the growth and developmental process of an economy cannot be overemphasized. Therefore, it is the quest of authorities in every economy to meet the supply of electricity needs of the citizens and industries. Although both renewable and non renewable energy source are available for an economy to generate electricity from, the recent concern for cleaner environment has raised interest of many government, environmentalists and policy makers to generate electricity power from renewable source - that are noted for emitting low carbon emission - prominent among them is hydro source. Meanwhile, the electricity supply for the Ghanaian economy which for years was mainly from hydro source has witnessed a reduction in her hydropower generation in the midst of growing electricity consumption but limited supply pushing the country to resort to power sharing. The paper thus investigates into the drivers of the declining hydro power generation in Ghana using annual time series data for the period 1977-2011. Estimations from the Fully Modified Ordinary Least Squares, Dynamic Ordinary Least Squares and Canonical Cointegration Regression estimators revealed Ghana’s hydropower generation is influenced by foreign direct investment, alternate source of energy, environmental degradation and trade openness. |
| Keywords: | renewable energy; electricity, hydropower, FMOLS, CCR, DOLS, Ghana |
| JEL: | Q2 Q25 Q42 Q43 Q5 |
| Date: | 2015–11–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:68033&r=env |
| By: | Robert C. Schmidt (Humboldt-Universitaet zu Berlin) |
| Abstract: | Tipping points in the climate system can stabilize climate treaties; the stabilizing effect, however, vanishes when the location of the threshold is sufficiently uncertain (Barrett, 2013). We demonstrate that in a dynamic setting, additional welfare gains can improve the prospects of cooperation. In our model, intertemporal efficiency gains result from abatement costs that are convex in each period. While non-cooperative countries tend to postpone their abatement efforts "until the last minute" as a result of the free-rider incentive, cooperation allows countries to allocate their abatement efforts efficiently over time. We show that cooperation often improves the outcome substantially, and arises endogenously in the model. Our main theoretical results are confirmed by experimental evidence. |
| Keywords: | climate treaty, abatement, long-term commitment, cooperation, free-riding |
| JEL: | D62 F53 H23 Q55 |
| Date: | 2015–10–26 |
| URL: | http://d.repec.org/n?u=RePEc:bdp:wpaper:2015018&r=env |
| By: | Jean-Philippe Nicolaï (ETH-Zürich) |
| Abstract: | This paper analyzes the long-term investment decisions of firms that are regulated by an emissions tax and that perceive a degree of market power in their respective output markets. Firms invest in abatement equipment that is fixed over the medium term (e.g., buying a new generator). This paper focuses on environmental regulation with and with- out commitment. In the commitment case, the government announces a long-run tax on emissions, and firms decide upon their investment levels. In the no-commitment case, the regulator announces a tax level and is free to modify it once firms have invested. This paper considers differentiated product goods and determines whether no-commitment regulation leads to more lenient or more stringent regulation than regulation with commitment. |
| Keywords: | Pollution permits; Imperfect competition; Investment; Strategic effects. |
| JEL: | L13 Q50 L51 |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2015.19&r=env |
| By: | Robert C. Schmidt (Humboldt-Universitaet zu Berlin); Marco Runkel (Technische Universitaet Berlin) |
| Abstract: | We introduce a model in which countries tax or subsidize output in an imperfectly competitive industry. Wage effects prevent all firms from locating in the same country when policies differ. In the absence of environmental externalities, countries non-cooperatively set subsidy rates optimally. This holds when firms' location choices are exogenously fixed, and when they are endogenous. Under environmental externalities, subsidies are lower or converted into taxes, but tax competition leads to an inefficient outcome. The relation between the strength of the externalities and welfare is non-linear. Under some conditions, countries benefit when externalities become stronger, due to a coordinating effect. |
| Keywords: | tax competition, labor market, location choice, pollution, carbon leakage |
| JEL: | F12 F18 H23 |
| Date: | 2015–10–26 |
| URL: | http://d.repec.org/n?u=RePEc:bdp:wpaper:2015016&r=env |
| By: | Mely CABALLERO-ANTHONY (S. Rajaratnam School of International Studies- Nanyang Technological University (RSIS-NTU)); Paul TENG (S. Rajaratnam School of International Studies- Nanyang Technological University (RSIS-NTU)); Goh TIAN (S. Rajaratnam School of International Studies- Nanyang Technological University (RSIS-NTU)); Maxim SHRESTHA (S. Rajaratnam School of International Studies- Nanyang Technological University (RSIS-NTU)); Jonatan LASSA (S. Rajaratnam School of International Studies- Nanyang Technological University (RSIS-NTU)) |
| Abstract: | Association of Southeast Asian Nations (ASEAN) food security can be comprehensively governed by the ASEAN Economic Community (AEC) and the ASEAN Social and Cultural Community (ASCC). This paper reviews the ASCC Blueprint and argues that, within the ASEAN framework, it is imperative for the ASCC to address food security in relation to climate change and disaster risks. There are three main reasons for this: the larger scope of environment security, climate change, and disaster risks under the ASCC; food security from beyond an economic standpoint under the flagship of the AEC; and climate change that alters regional food systems, agriculture, and fisheries, which contribute significantly to the livelihoods and well-being of all people in the region. Although the distribution of impacts and risks of climate change will be different from place to place and household to household, marginal farmers, fisherfolk, and poor urban consumers are likely to be impacted disproportionately. Thus the need for a shared governance of food security and climate change under the ASCC and AEC to comprehensively consider the availability, accessibility, utility, and stability of food for populations from both an economic and socio-cultural perspective. |
| Keywords: | ASEAN Socio-Cultural Community, climate adaptation, climate vulnerability, food security |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:dp-2015-74&r=env |
| By: | Lara Makowski (Graduate School of Business Administration, Kobe University); Qi Wu (Graduate School of Business Administration, Kobe University); Michiyuki Yagi (Graduate School of Business Administration, Kobe University); Katsuhiko Kokubu (Graduate School of Business Administration, Kobe University) |
| Abstract: | After the nuclear disaster, in the aftermath of the Great East Japan Earthquake in 2011, the Japanese government shut down all nuclear power plants in Japan. The German government decided to permanently phase out nuclear power. Japan was, and still is, directly affected by the nuclear disaster and Germany is considered the most sensitive country to nuclear energy after the nuclear disaster. This study aims to empirically examine whether there were changes in corporate environmental performance through companies’ implementations of environmental policies from before 2011 to after 2011 in Germany and Japan in the non-financial and non-energy. The dependent variable (as corporate environmental performance) is defined as a firm’s sales divided by corporate direct greenhouse gas emissions (Scope 1) in the logarithm form. The independent variables are nine corporate policies, which all are dummy variables. This study uses the global firm dataset from the Bloomberg professional service where the number of observation is 832 in over a seven-year period (2006-2012). In the regression result, we find that when roughly examining pre and post 2011, using a dummy variable, there is significant change regarding the Japan and both sample. We then find that in eight out of the nine cases there is no effect of implementing the environmental policies on corporate efficiency. |
| Keywords: | Environmental efficiency; Pre and post disaster; Germany and Japanese companies; environmental, social, and governance policies; greenhouse gas emissions |
| JEL: | F21 O13 Q54 |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:kbb:dpaper:2015-24&r=env |
| By: | Dudin, Mikhail Nikolaevich (Russian Academy of Entrepreneurship); Balabanov, Vladimir Semenovich (Russian academy of Entrepreneurship); Balabanova, Anna Vladimirovna (Russian academy of Entrepreneurship) |
| Abstract: | This article aims to study the relationship between social responsibility of business and sustainable development of enterprise structures in the current economic conditions. In the course of the research, the authors determined that sustainable development of enterprise structures is determined by many influencing factors, localized both in the external and internal environment of an enterprise structure; sustainable development of enterprise structures cannot be achieved without the growth of business social responsibility. Social responsibility of business is integration of social and environmental problems, solved by enterprise structures in interaction with stakeholders; enterprise structures and stakeholders mutually influence each other, but this influence is not identical in strength. Sustainable development of enterprise structures depends to greater extent on influence of owners (owners of capital), competitors, public authorities; in the medium term, as the world's evolutionary problems accumulate, requirements for social responsibility of business will continue to grow. Requirements for energy efficiency management of various economic activities will play a significant role in this tendency. |
| Keywords: | sustainable development, social responsibility, business, entrepreneurship, corporation, balanced growth |
| Date: | 2015–03–20 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:ppaper:d157&r=env |
| By: | Njeru, Sarah; Kragt, Marit; Banning, Natasha |
| Abstract: | This work was undertaken to complete the requirements of Ms. Njeru’s Master degree of Environmental Science (Environmental management) |
| Keywords: | Mine closure, Regulation, Criteria, Aspects, Integrate, Evaluation, Successful, Environmental Economics and Policy, Resource /Energy Economics and Policy, N57, K32, L72, Q38, |
| Date: | 2015–11–23 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uwauwp:212741&r=env |
| By: | Madalina Cristina TOCAN (Faculty of Economics, Ecological University of Bucharest) |
| Abstract: | Economic and financial crisis was generated by the current market model, a model which has to be rethought from the ground. The solution could come from a new and sustainable system, oriented on the long-term progress of human society. Appropriate and necessary sustainable development measures are already implemented in more companies throughout the world. Sustainable development can be a 2 in 1 solution for both environmental and business problems in Romania. The main impediment to the application of measures for sustainable development in Romania is the lack of thorough knowledge of the concept. The fact that the principles of sustainable development are not sufficiently known in Romania by those landing at decision level is regrettable. In fact, sustainable development must be a reference to the crisis. |
| Keywords: | sustainable development, financial crisis, green business |
| JEL: | G01 Q01 Q56 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:eub:wp2014:2014-06&r=env |
| By: | Majah-Leah V. Ravago (School of Economics, University of the Philippines Diliman); James Roumasset (University of Hawaii); Karl Jandoc (University of Hawaii) |
| Abstract: | This paper attempts to explore the use of an OECD Multi-Dimensional Country Review (MDCR) framework in understanding the long-term development history of the Philippines. The MDCR recognizes the multiplicity of development objectives countries usually pursue and therefore the associated multiplicity of challenges and opportunities. Following a conventional dichotomy of explaining the country’s development dynamics into economic and non-economic factors, the paper reviews the historical economic record and examines more recent non-economic hypotheses. While the latter is mostly political explanations it tries to link them to economic outcomes yet it is weak in tracing the mechanisms of the linkage despite using more rigorous methodologies. The paper then proceeds with hypothesizing that the long-term (political) behavior of breaking the country into finer geographical (and political) entities has been inimical to its sustainable long-term (economic) growth. The splitting of provinces, creation of new ones, of legislating more congressional districts, and further break-up of even the lowest government levels clearly fragment markets, raise real financial and transactions costs, bloat government budgets and the bureaucracy, and add burden to the private sector environment. Partial evidence is explored showing this behavior along the country’s long-term development history and some policy directions are suggested. |
| Keywords: | Farm-household risk management, natural disaster, shock, coping |
| JEL: | Q12 Q54 D81 I38 |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:phs:dpaper:201515&r=env |
| By: | Janet Hunter |
| Abstract: | This review examines three monographs that make conspicuous contributions to our understanding of major earthquake disasters in Japan from the mid-nineteenth century through to 2011. They focus on different events and different time periods, and ask different questions, but raise a host of shared issues relating to the ongoing importance of disaster in Japan's history over the long term. They cause us to consider how seismic disaster is explained, understood, interpreted and actualised in people's lives, how the risks are factored in and how people respond to both immediate crisis and longer term consequences. One recurrent issue in these volumes is the extent to which these large natural disasters have the capacity to change, and actually do change, the ways in which societies organise themselves. In some cases disaster may be perceived as opportunity, but the evidence overwhelmingly suggests that a desire to return to the previous 'normality' is a powerful impulse in people's responses to major natural disasters. The review also argues that the issue of trust lies at the core of both individual and collective responses. A lack of trust may be most conspicuous in attitudes to government and elites, but is also inherent in more everyday personal interactions and market transactions in the immediate aftermath of disaster. * |
| JEL: | N0 |
| Date: | 2015–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:62495&r=env |
| By: | David Bailey; Lisa De Propris; Jürgen Janger |
| Abstract: | The policy brief synthesises key policy findings from Area 3. The over-riding goal is to foster the transition to a new growth path for Europe, with a dynamic manufacturing and services base, greater social inclusiveness, less unemployment and higher sustainability based on excellence in clean technologies. Embarking on a growth path that leverages current technological chances, that is ecologically compatible and that delivers greater and more shared prosperity requires a vision that is able to set long term, clear and transparent targets and to draw pathways to reach them. Businesses require certainty to take risks and create the jobs that societies and communities need to flourish and prosper. Economic growth, social inclusion and ecological ambitions are not necessarily mutually exclusive, but neither are they mutually supportive. In the New Industrial Policy that this brief presents, we see a real opportunity for developing a policy agenda that is capable of transforming some of the trade-offs into potential synergies, problems into solutions and constraints into advantages. Our research has encompassed five key questions: (a) How can we redefine competitiveness so as to encompass social and ecological objectives and to motivate a new industrial policy needed for technology shifts and inclusive, sustainable growth? (b) How do we realign innovation and industrial performance towards social and ecological objectives? (c) What is the impact of green innovation on growth, employment and social cohesion? (d) How can entrepreneurial dynamics drive smart and sustainable growth? (e) How can intangible assets and the quality of academic research act as drivers of change? This Policy Brief outlines the essential elements of the New Industrial Policy for Europe (NIPE) for a more smart, inclusive and sustainable growth. |
| Keywords: | Economic growth path, economic strategy, holistic and interdisciplinary approach, industrial policy, policy options, political economy of policy reform, social development, sustainable growth |
| JEL: | O25 L52 |
| Date: | 2015–08 |
| URL: | http://d.repec.org/n?u=RePEc:feu:wfepbr:y:2015:m:8:d:0:i:9&r=env |