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on Environmental Economics |
| By: | Juudit Ottelin; Jussi Vimpari; Seppo Junnila |
| Abstract: | Building integrated renewable energy production, such as solar energy solutions, reduce the greenhouse gas emissions (GHG) caused by operational energy consumption of buildings. What is less understood, however, is how the investment in these sort of energy solutions affects the overall GHG emissions caused by the person or the company that makes the investment.In general, all economic activities cause environmental impacts. Thus, it has been suggested that the boundaries of environmental assessments should not be based on physical boundaries, but rather monetary budgets. For example, carbon footprints of consumers have revealed that investments in energy efficiency do not only reduce the GHG emissions caused by energy consumption, but also the emissions caused by consumption of other goods and services. This is due to the reality that consumers must withdraw the funds for the investment from some other purposes. However, when the investment in energy efficiency starts to make profit, the situation is reversed. The money saved from declining energy consumption is used on goods and services, which again increases the GHG emissions. The phenomenon is called "the environmental rebound effect". The rebound effect caused by an investment is usually negative, meaning additional GHG reductions. The rebound effect caused by (energy) savings is usually positive, meaning additional GHG emissions prompted by the new consumption enabled by the savings.The purpose of this study is to assess the carbon footprint, and demonstrate the rebound effects over time, caused by investments in large scale building integrated solar energy production. The study takes into account the embodied GHG emissions in the new energy system. The rebound effects are estimated with various assumptions about the alternative consumption or investment. The study highlights why the monetary and time dimensions are important, when considering the overall environmental impacts of green investments. |
| Keywords: | building integrated energy production; carbon footprint; Rebound effect; Solar Energy |
| JEL: | R3 |
| Date: | 2017–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2017_170&r=env |
| By: | Eeva Säynäjoki; Seppo Junnila |
| Abstract: | Urban planners are in a unique position to steer and regulate urban regeneration. Given the massive material flows of new construction, it seems evident that the environmental objectives of urban planning should target the immediate development phase as well as the future use phase of the built environment. Nevertheless, the potential of urban planning to contribute to mitigation of climate change is often only considered to lie in the use phase. Densification, improved public transportation infrastructure and new energy efficient buildings are seen to be the core elements of sustainable urban development. However, the gains attributed to reductions in transport and housing emissions contribute to climate change mitigation only after the demerits of new construction are redeemed.Within the current time frame of climate change mitigation targets, the negative effect of the immediate emissions from construction becomes extremely relevant. Multiple studies have stressed the rising importance of the construction phase in a building’s or residential area’s life cycle GHG emissions. In addition to emissions from aboveground construction, earthworks account for a considerable amount of GHG emissions. In Finland, the yearly consumption of natural mineral aggregates is approximately 100 million tonnes, and local depletion of materials gradually lengthens the transport distances. Surpluses of soil and blasted rocks are more often seen as being troublesome to discard as opposed to being useful resource. The purpose of this study was to investigate if reducing the GHG emissions of earthworks could be a relevant part of sustainable urban planning.A single case study was conducted to assess the magnitude of GHG reduction that can be achieved by an urban planner’s control over earthworks. The case area was a 120 hectare wide residential development for 5,000 inhabitants, located in the Northwest corner of Helsinki, the capital of Finland. The case study covered three planning solutions that intended to reduce the transportation of rock and soil materials: (1) local use of blasted stone, (2) a hill made of surplus clay, and (3) minimal refurbishment of a pond. The three planning solutions reduced the GHG emissions of earthworks by 2,360 tonnes. In addition, particle emissions were reduced by 420 kg. The immediate GHG emissions savings were equivalent to 250 inhabitants giving up use of private vehicles for 10 years. |
| Keywords: | case studies; earthworks; Environmental Sustainability; GHG emissions; Urban Planning |
| JEL: | R3 |
| Date: | 2017–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2017_232&r=env |
| By: | Thomas Carver (Motu Economic and Public Policy Research); Patrick Dawson (Motu Economic and Public Policy Research); Suzi Kerr (Motu Economic and Public Policy Research) |
| Abstract: | New Zealand is the first, and still the only, country to include forest landowners as full and, in some cases, mandatory participants in a greenhouse gas (GHG) emissions trading scheme (ETS), the NZ ETS. Carbon sequestration by forestry continues to be an important part of New Zealand’s contribution to its global obligations to reduce emissions. This paper describes the policy changes to the NZ ETS since 2008 that directly affect forestry; assesses the effectiveness of the scheme; explores who is benefiting from it; and outlines issues facing forestry in the NZ ETS moving forward. We find that forest owners have responded to the financial incentives from the NZ ETS in a rational way. Both afforestation and deforestation decisions appear to have been influenced by the emissions price and/or expectations about the emissions price in the future. However, the scheme has been beset by challenges. The collapse in the global carbon price and, associated with this, the proliferation of international Kyoto credits of questionable environmental integrity, combined with the government decision to delay New Zealand’s delink from international markets until 2015, greatly reduced the price signal for forestry from the NZ ETS from 2012 to 2015. A weak price signal, coupled with ongoing policy uncertainty surrounding the NZ ETS, has limited the effectiveness of the scheme in achieving its forestry goals. Prospects going forward are more positive particularly if the current reform of the ETS can create clear predictable price signals and better manage the complexity of forestry rewards and liabilities, particularly as faced by smaller landowners who are not professional foresters but could potentially participate and reforest. |
| Keywords: | Water emissions trading, environment, New Zealand, Motu, carbon markets, evaluation |
| JEL: | Q23 Q54 Q58 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:mtu:wpaper:17_11&r=env |
| By: | Asongu, Simplice |
| Abstract: | Motivated by sustainable development challenges in Sub-Saharan Africa, this study assesses the comparative persistence of environmental unsustainability in a sample of 44 countries in the sub-region for the period 2000 to 2012. The empirical evidence is based on Generalised Method of Moments. Of the six hypotheses tested, it is not feasible to assess the hypothesis on resource-wealth because of issues in degrees of freedom. As for the remaining hypotheses, the following findings are established. (i) Hypothesis 1 postulating that middle income countries have a lower level of persistence in carbon dioxide (CO2) emissions is valid for CO2 per capita emissions, CO2 emissions from electricity and heat production and CO2 emissions from liquid fuel consumption. (ii) Hypothesis 2 on the edge of French civil law countries is valid for CO2 emissions from liquid fuel consumption and CO2 intensity, but not for CO2 per capita emissions. (iii) Hypothesis 3 on the postulation that politically-unstable countries reflect more persistence is valid for CO2 per capita emissions. (iv) Hypothesis 5 on the propensity for landlocked countries to be associated with more persistence in CO2 emissions is valid for CO2 per capita emissions but not for CO2 emissions from liquid fuel consumption. (v) Hypothesis 6 maintaining that Christianity-dominated countries are more environmentally friendly with regard to CO2 emissions is valid for CO2 per capita emissions but not for CO2 emissions from liquid fuel consumption and CO2 intensity. Implications for policy and theory are discussed. |
| Keywords: | CO2 emissions; Sustainable development; Environment; Africa |
| JEL: | C52 O38 O40 O55 P37 |
| Date: | 2017–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:85487&r=env |
| By: | Gustavo Carvalho (University of Toronto) |
| Abstract: | Municipalities are crucial stakeholders in the response to climate change. Cities are major sources of greenhouse gas emissions and, due to their higher building and population densities, will bear the brunt of the economic and social costs imposed by extreme weather and the impact of climate change. Ontario municipalities have traditionally funded their investments from property taxes, user fees, and transfers from higher levels of government, but these sources will not be sufficient to fund both current expenditures and future capital needs. This paper explores an alternative: climate finance, the provision of financing by private actors for projects intended to decrease carbon emissions or make cities more resilient to the impacts of climate change. It analyzes four climate financing tools used in other jurisdictions – green bonds, environmental impact bonds, catastrophe bonds, and green banks – and their feasibility under current Ontario regulations. Not all instruments would be equally suitable to Ontario municipalities; each offers trade-offs that must be weighed before implementation. Still, the potential for climate financing is huge and it has a role to play in long-term climate infrastructure projects requiring large upfront investments. |
| Keywords: | climate finance, debt finance, green bonds, environmental impact bonds, catastrophe bonds, green banks |
| JEL: | H23 H71 H74 Q54 |
| Date: | 2018–03 |
| URL: | http://d.repec.org/n?u=RePEc:mfg:wpaper:37&r=env |
| By: | Loeschel, Andreas; Pei, Jiansuo; Sturm, Bodo; Wang, Ran; Buchholz, Wolfgang; Zhao, Zhongxiu |
| Abstract: | In this study, the real demand for global and local environmental protection in Beijing, China, is elicited and investigated. Participants from Beijing were offered the opportunity to contribute to voluntary climate change mitigation by purchasing permits from two Chinese CO2 emissions trading schemes (ETS). Purchased permits were withdrawn from the ETS. Since CO2 emissions mitigation is inevitably linked to other local benefits like the reduction in emissions of air pollutants, the aim of our study is to establish the demand for local and global environmental protection. To this end, Beijing and Shenzhen ETS permits were offered. The result is that at low prices the demand for Beijing ETS permits is significantly higher than for Shenzhen ETS permits indicating that a substantial part of the revealed demand for voluntary climate change mitigation in Beijing is driven by concerns for local co-benefits of CO2 emissions reduction. Our research identifies the important role of private benefits in the voluntary provision of the global public good climate change mitigation and provides first experimental evidence for China. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cawmdp:102&r=env |
| By: | Tore Haugen; Dave Collins |
| Abstract: | The Paris Agreement adopted by a consensus of 195 countries in December 2015 went into effect on the 4th November 2016. In Norway, as one of the countries that had ratified the agreement, the government has introduced the "Green shift – climate and environmentally friendly restructuring" as the way forward to reduce the climate gas emissions in 2050. One of the most important measures is reducing emissions in the building and construction sector.The purpose of this paper is to explore how we can develop a stronger and more integrated approach from the planning and design of sustainable buildings to sustainable facilities management (FM). We have to bridge the traditional gap between design, construction and FM by developing effective solutions analysed over the life cycle perspective of buildings. The answer to the "Green shift" for real estate and facilities management (FM) also needs to be a coordinated approach from the strategic and tactical levels in organisations to the implementation on operational level.Our theoretical framework is based on models for life cycle analysis of buildings, and organisational models for sustainable FM. In the case studies conducted by our Master students over the last two years, they have employed how sustainable FM is being handled strategically and operationally in large public institutions managing their own buildings. The main focus has been on university buildings, but some other institutions representing cooperate real estate have also been included in the studies.This paper takes the form of an exploratory approach based of the different case studies. Our findings indicate that the integrated approach based on an understanding of the life cycle perspective including planning, design, construction and FM are normally present in new construction projects, but the knowledge regarding the environmental impact and reduction of carbon emission gases when designing zero emission buildings are only present in pilot research and development projects.We have looked at how to bridge this gap better from planning to facilities operations and FM, and we see the need to develop better conceptual understanding and communication between the strategic / tactical and operational level in campus operation and development. By way of discovering further exploratory findings, the case studies have been supported by literature research from academic journals as well as documentation from a number of applied projects. |
| Keywords: | Campus development; Environmental friendly solutions; Life cycle analysis; Sustainable Buildings; Sustainable facilities management |
| JEL: | R3 |
| Date: | 2017–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2017_321&r=env |
| By: | Georgy Safonov (National Research University-Higher School of Economics); Sh. Enkhbayar (Economic Research Institute for Northeast Asia (ERINA)) |
| Abstract: | The Paris Climate Agreement established a new global target of combating global warming above 2 degrees Celsius. Over 180 countries have already committed to reduce or limit carbon emissions by 2030. This climatic goal will lead to the transformation and deep decarbonization of the global economy, with nearly zero carbon emissions soon after 2050. Northeast Asian countries are responsible for 40% of global CO2 emissions, and they have the technological and resource potential for decarbonization both domestically and within regional cooperation projects. |
| Keywords: | climate change mitigation; deep decarbonization pathways; low-carbon development; Northeast Asia |
| JEL: | Q43 Q54 Q56 Q58 N15 |
| URL: | http://d.repec.org/n?u=RePEc:eri:dpaper:1701&r=env |
| By: | Gail Cohen; João Tovar Jalles; Prakash Loungani; Ricardo Marto; Gewei Wang |
| Abstract: | We provide a comprehensive analysis of the relationship between greenhouse gas (GHG) emissions and GDP in China using both aggregate and provincial data. The Kuznets elasticity is about 0.6 for China, higher than that in advanced countries but below that of major emerging markets. The elasticity is somewhat lower for consumption-based emissions than for production-based emissions, providing mild evidence consistent with the “pollution haven” hypothesis. The Kuznets elasticity is much lower for the last three decades than for the three previous decades, suggesting a longer-term trend toward decoupling as China has become richer. Further evidence of this comes from provincial data: richer provinces tend to have smaller Kuznets elasticities than poorer ones. In addition to the trend relationship, we find that the Environmental Okun's Law holds in China. |
| Date: | 2018–04–11 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:18/85&r=env |
| By: | Wangsness, Paal Brevik (Institute of Transport Economics – Norwegian Centre for Transport Research) |
| Abstract: | The road transport market has many market imperfections such as local and global pollution, accidents, noise and road wear. Electric vehicles (EVs) avoid some of these by not having any tailpipe CO2 emissions, but they still contribute to external costs such as congestion. Our research questions are: What characterizes the set of secondbest road prices for internalizing external costs from driving EVs and ICEVs when you also have distortionary labor taxes and binding government budget constraints? How are these prices affected by distortions elsewhere in the economy? How does this second-best pricing fit with government set goals of reducing CO2 emissions? This paper further develops an analytical framework for assessing first- and secondbest road prices on vehicle kilometers, extending it to include EVs and externalities that vary geographically and by time of day. Expressions for the optimal road prices are derived analytically, and then solved numerically. We find that optimal road prices largely vary with external cost, giving high prices for driving in cities during peak hours, and relatively low prices for driving in rural areas. We also see that the road prices’ interactions with the rest of the fiscal system have implications for determining the optimal set of road prices. However, the optimal set of road prices leads to little or no reductions in carbon emissions with the currently recommended social cost of carbon estimates. This implies that any required reduction in CO2emissions will require a shadow price that exceeds the current social cost estimate. |
| Keywords: | road pricing; road transport externalities; electric vehicles; government budget; constraints; tax interaction; CO2 emission constraints |
| JEL: | H21 H23 Q54 Q58 R41 R48 |
| Date: | 2018–04–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nlsseb:2017_010&r=env |
| By: | Padhan, Hemachandra (National Institute of Technology (NIT)); Haouas, Ilham (Abu Dhabi University); Sahoo, Bhagaban (Anandapur College); Heshmati, Almas (Jönköping University, Sogang University) |
| Abstract: | This study uses 1971-2013 panel data to explore the implications of growth, wealth disparities and energy consumption on carbon emissions in a sample of Next-Eleven (N-11) countries. It uses modern econometric techniques to highlight a long-run interplay between selected variables in the carbon emissions function for all the N-11 nations and long-run interactions among the series analyzed. Contrastingly, it also shows that economic growth, income inequalities and energy consumption accelerate CO2 emissions. In addition to examining the effects of the wealth disparities square, the study also uses the Environmental Kuznets Curve hypothesis in the context of the N-11 states. Its findings suggest that policymakers should curb rising income inequalities through effective redistributive measures such as tax transfers (cash transfers) and taking up other expenditure programs for the poor. Moreover, the Indian government should emphasize on an energy-reducing strategy policy to reduce income inequalities and achieve sustainable development. |
| Keywords: | CO2 emissions, income inequality, panel cointegration, Next-Eleven countries |
| JEL: | Q50 O15 C23 |
| Date: | 2018–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11407&r=env |
| By: | Mohamed Boly (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This paper empirically investigates the link between foreign aid and pollution, specifically CO2 emissions in developing countries. We use a more complete and recent dataset to re-assess the environmental impact of foreign aid. Focusing on 112 aid recipient countries over the period 1980 - 2013, we find that the effect of aid depends on the donor, with multilateral aid more likely to reduce pollution than bilateral aid for which we find no effect. However, when we more precisely look at the composition of bilateral aid, we find it has an effect when specifically targeted toward environment. This effect is non-linear, since we observe a pollution-reducing effect only for important amounts of bilateral environmental aid. |
| Keywords: | CO2 emissions, Foreign aid, Environmental aid, Threshold effect |
| Date: | 2018–03–22 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01740881&r=env |
| By: | Weigang Zhao; Yunfei Cao; Bo Miao; Ke Wang; Yi-Ming Wei |
| Abstract: | Electrification is advocated by both academics and the Chinese government to control air pollution and promote productivity. However, the problem remains to be solved of how to achieve the trade-off between reducing CO2 emissions and maintaining economic growth when switching from various fuels to electricity under the policy support. In view of this, after analyzing the effects of exogenous shocks in various fuel demands based on impulse response functions of several vector autoregression models, this paper measures the current and long-term impacts of electrification on GDP and CO2 emissions. Finally, some typical cases of replacement of fossil-fueled appliances by electrical counterparts encouraged by the government are assessed. The main findings are: (1) Almost all of the exogenous shocks in fuel demands have positive effects on both GDP and CO2 emissions, while the gas shock has a slightly negative effect on GDP; (2) Carbon intensity decreases and even CO2 emission reductions with increased GDP are potentially achieved, in both current and permanent periods, for coal-electricity and oil-electricity switching, while gas-electricity switching is not a wise choice in view of CO2 emission reduction in the long run; (3) The alternative electric appliances for electrification have very different impacts on CO2 emission reduction. |
| Keywords: | Fuel-switching; Inter-fuel substitution; Electrification; CO2 emissions; Economic growth |
| JEL: | Q54 Q40 |
| Date: | 2018–04–10 |
| URL: | http://d.repec.org/n?u=RePEc:biw:wpaper:115&r=env |
| By: | Croner, Daniel; Koller, Wolfgang; Mahlberg, Bernhard |
| Abstract: | The Paris agreement has prescribed strict Greenhouse Gas (GHG) reduction targets for participating countries. Implementation of climate protection policies is challenging, especially if the economy is export driven. We introduce a hierarchical structural decomposition model in order to investigate the effects of exports, imports, economic structure, consumption patterns, consumption level, outsourcing and insourcing on national GHG emissions. This model is applied to the data of national environmental accounts and to a harmonized and price-deflated series of national input-output tables of Austria for the years 1995, 2000, 2005 and 2010. Over the whole time period, the results indicate that the final demand effect was the main driver of GHG emissions, with exports as most important factor. Surprisingly, emission intensity contributed to an increase of GHG emissions during the period 2000-2005 as well, mostly due to increasing emission intensity in the transport sector. |
| Keywords: | Leontief Model; Emissions Embodied in Exports; Trade Integration; Economic Structure; CO2-Intensity; Competitiveness |
| JEL: | C67 L16 Q53 Q56 |
| Date: | 2018–02–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:85755&r=env |
| By: | Paola D’Orazio (Lehrstuhl für Makroökonomik, Faculty of Economics and Management, Fakultät für Wirtschaftswissenschaft, Ruhr-Universität Bochum, Universitätsstraße 150, 44801 Bochum (Germany).); Marco Valente (Dipartimento di Ingegneria Industriale e dell’Informazione e di Economia, University of L’Aquila (Italy); LEM Sant’Anna, Pisa (Italy); SPRU, University of Sussex (UK) and Ruhr-Universität Bochum (Germany).) |
| Abstract: | We develop a model that combines evolutionary economics concepts and methods with environmental economics concerns. The model is populated by consumers, heterogeneous firms, and a financial sector and is used to investigate the dynamic interactions between the demand and supply side, and the role played by binding financial constraints, in the diffusion of environmental innovations. The aim of the model is to understand how environmental goals can be effectively promoted and achieved in presence of a financial sector whose lending attitude is guided by long-termism rather than shorttermism. We show that financial constraints act as a deterring barrier and affect firms’ innovation strategies as well as the evolution of technological paradigms. When financial constraints are less binding, firms do not perceive hindrances to the adoption of eco-innovation and, as a result, the presence of the average green technology in the market increases. |
| Keywords: | Environmental Innovation, Agent-based Computational Economics, Financial Barriers, Green Finance, Short-termism, Deterring barriers, Credit constraints. |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2018-10&r=env |
| By: | Malgorzata Zieba; Agnieszka Telega |
| Abstract: | Extensive research on benefits (economic health and environmental) of sustainable office buildings does not cover sufficiently buildings’ impact on urban sustainability. Even though the multi-aspect impact of built environment on cities’ development is a well-known and broadly discussed phenomena and encompasses, among others, transportation issues, access to urban amenities, urban functions, land use, natural environment protection, health, quality of life and local economy.Creating and improving local conditions for living and investing is the responsibility of local governments. In Poland, planning tools like land-use planning isn’t obligatory for municipalities to elaborate, and it is perceived as intentional activity or additional initiative taken to stimulate local development.The purpose of this paper is to analyze the links between sustainable urban development, planning policies and office site location decisions making process of real estate investors and conceptualize a model of a green building location that meets real estate investors’ needs and requirements of urban sustainability.Criteria adopted for best-sustainable locations were elaborated on the basis of literature on urban sustainability and on office locational choicesTo determine most sustainable location of office buildings and to evaluate sustainable neighborhoods, we conducted analysis in GIS and calculated selected metrics (mixed land-use, walkability and clean transportation accessibility). In the next step we conducted semi-structured, in-depth interviews with investors engaged in sustainable office development projects in Cracow, asking them to define decision-making criteria of office building location.Conclusions from application of the model of office location and confrontation it with locations of existing office buildings in Cracow, could enhance sustainability of office buildings measured from sustainable urban development perspective and represented by buildings’ locations, and could contribute to better effectiveness of planning policy tools. |
| Keywords: | land-use planning; office building location; Sustainable Building; Sustainable Urban Development |
| JEL: | R3 |
| Date: | 2017–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2017_245&r=env |
| By: | Zia, Muhammad Qasim; Mehmood, Majid |
| Abstract: | This paper examines the various metals that are associated with land contamination for instances arsenic, cadmium, lead, chromium, nickel, and mercury that are well known as the ingredient of contamination of the ecology in the region where there is a high rate of anthropogenic burden. The study investigates land contamination in Pakistan's context. The researches have used the quantitative method to analyze the most recent literature available on the land contamination of Pakistan following funnel approach. The three main steps followed to analyze are first, assessment of the site initially, secondly, assessment of the exposure of the contaminated site that also contains a survey of few places and the amount of contamination found and lastly, remediation of the site. The finding revealed that the contamination in Pakistan is both men made as well due to the terrain they belong to that contains various anthropogenic elements, which are harmful to live beings. Additionally, it is evident that the different elements, which can cause soil contamination, are higher in many places in Pakistan than the standard or tolerable rate mentioned by WHO and other survey board. Lastly, the paper confirms that the pollution can be reduced only if there is a reduction in the man made cause of the land contamination such as oil spill and other industrial emissions that constitute most of Pakistan’s land contamination. |
| Keywords: | Environmental Contamination, Landscapes, Resource Inventory Data, Risk Assessments, Pakistan |
| JEL: | Q15 Q24 Q25 Q29 |
| Date: | 2018–03–22 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:85510&r=env |
| By: | Massimiliano Corradini; Valeria Costantini; Anil Markandya; Elena Paglialunga; Giorgia Sforna |
| Abstract: | The EU low-carbon strategy includes different complementary policies. Potential interactions between instruments and timing of their implementation can influence the cost and likelihood of achieving the targets. We test the interactions between the three main pillars of the EU strategy through a dynamic CGE model (GDynEP) with a time horizon of 2050. Main results are: i) going for the unilateral EU carbon mitigation target without any complementary technological policy will produce large economic losses; ii) by investing in clean energy technologies (energy efficiency and renewable energy) with a carbon tax revenue recycling mechanism, these losses will substantially decrease; iii) when complementary clean energy technology policies are implemented, the optimal timing of binding targets changes; iv) the higher the contribution to clean energy technologies, the larger the economic gains in early adoption of challenging abatement targets. |
| Keywords: | EU low-carbon strategy; dynamic CGE model; GTAP; abatement optimal timing; policy mix design; clean energy technologies |
| JEL: | H21 O32 Q47 Q54 |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:rtr:wpaper:0236&r=env |
| By: | Jose-Miguel Abito; Christopher R. Knittel; Konstantinos Metaxoglou; André Trindade |
| Abstract: | We show that inefficiencies from having separate markets to correct an environmental externality are significantly mitigated when firms participate in an integrated product market. Firms take into account the distribution of externality prices and reallocate output from markets with high prices to markets with low prices. Investment in cleaner and more efficient capacity serves as an additional mechanism to reallocate output, which increases the marginal benefit of investment, and consequently improves longer-term outcomes. Using data from an integrated wholesale electricity market, we estimate a dynamic structural model of production and investment to bound the loss from separate markets for carbon dioxide emissions, and quantify the extent to which optimal investment can compensate for the loss. Despite the lack of the “invisible hand” of a single emissions market, profit-maximizing firms can play a crucial role in coordinating otherwise uncoordinated environmental regulations. |
| JEL: | L2 L5 L94 Q48 Q53 Q54 |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:24481&r=env |
| By: | Waichman, Israel; Requate, Till; Karde, Markus; Milinski, Manfred |
| Abstract: | Avoiding a catastrophic climate change event is a global public good characterized by several dimensions, notably heterogeneity between the parties involved. It is often argued that such heterogeneity between countries is a major obstacle to cooperative climate policy. We challenge this belief by experimentally simulating two important heterogeneities, in wealth and loss, when dangerous climate change occurs. We find that under loss heterogeneity the success rate in achieving sufficient mitigation to prevent catastrophic climate change is higher than with homogeneous parties. We also observe that neither endowment heterogeneity nor the combination of endowment and loss heterogeneities lead to significantly different success rates than with homogeneous parties. Our findings suggest that heterogeneities may facilitate rather than hinder successful international climate policy negotiations. |
| Keywords: | global public good,climate change negotiation,collective-risk social dilemma,endowment heterogeneity,loss heterogeneity,focal point |
| JEL: | C92 D74 H41 Q54 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cauewp:201805&r=env |
| By: | Augeraud-Véron, E.; Fabbri, G.; Schubert, K. |
| Abstract: | This paper presents a benchmark stochastic endogenous growth model of an agricultural economy. Producing food requires land, and increasing the share of total land devoted to farming mechanically reduces the share of land devoted to biodiversity conservation. However, safeguarding a greater number of species guarantees, through spatial exchanges, better ecosystem services which, in turn, ensure lower volatility of agricultural productivity. The optimal conversion/conservation rule is explicitly characterized, as well as the total value of biodiversity in terms of the welfare gain from biodiversity conservation, and the marginal value of biodiversity in terms of risk premium reduction, namely its insurance value. The Epstein-Zin-Weil specification of preferences allows us to disentangle the effects of risk aversion and aversion to fluctuations. |
| Keywords: | BIODIVERSITY;STOCHASTIC ENDOGENOUS GROWTH;INSURANCE VALUE;RECURSIVE PREFERENCES |
| JEL: | Q56 Q58 Q10 Q15 O13 O20 C73 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:gbl:wpaper:2018-05&r=env |
| By: | Massimo Mariani; Pierluigi Maria Patruno; Paola Amoruso; Alessandra Caragnano |
| Abstract: | Sustainability represents an innovative component of profitability for real estate finance, in line with the dynamics that characterize the today different sectors in the global landscape.Among other instruments, real estate funds which aim to ensure sustainability as an essential component of their investment strategy opt in diversifying their investment portfolios, including a "green" component represented by certified buildings.In instance, there has been a significant expansion of this segment within the US market, followed by a relatively recent development on the European framework.In light of these recent trends affecting the European market, the present research paper is intended to ascertain the impact of the "green" component on the financial performance of European REITs.In particular, the adopted selection criteria refer to the two European most widespread certifications: LEED and BREEAM, which provide standards for evaluating sustainable buildings from an environmental point of view. The objective is to demonstrate the degree of correlation between the adoption of implemented sustainable policies and financial performance (particularly, selected indicators have been: ROE, ROA, FFO and alpha).In addition, the widely validate state of the art Fama-French Five Factor Model has been applied for the estimation of funds performances, improving the meticulousness of the work as one of a kind.The rationale of this research arises from results of previous studies that investigated on green investment funds and comparable traditional funds performances, questioning whether pursuing green investment goals, would improve return performance (Eichholtz, Kok, and Yonder 2012).The work is oriented in validating the hypothesis, which states that sustainable and environmentally friendly components positively affect investment portfolios, focusing on the European property management industry.Therefore, this paper has the ambitious aim to fill the gap in current literature on REITs mainly focused on the US market. |
| Keywords: | European Reits; Financial Performance; Green Buildings; Green investments; Sustainable policies |
| JEL: | R3 |
| Date: | 2017–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2017_92&r=env |
| By: | Jonathan Cohn; Tatyana Deryugina |
| Abstract: | Using novel US environmental spill data, we document a robust negative relationship between the number of spills a firm experiences in a given year and its contemporaneous and lagged (but not future) cash flow. In addition, studying two natural experiments, we find an increase (decrease) in spills following negative (positive) shocks to a firm's financial resources, both in absolute terms and relative to control firms. Overall, our results suggest that firms' financial resources play an important role in their ability to mitigate environmental risk. |
| JEL: | G32 Q52 Q53 |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:24516&r=env |
| By: | Khobai, Hlalefang |
| Abstract: | This paper applied the ARDL bounds test approach and the VECM test technique to examine the long run relationship and direction of causality between renewable energy consumption and economic growth in Argentina. Quarterly time series data was employed in this study covering a period between 1990 and 2014. Trade openness, capital and employment were included in the study to form a multivariate framework. The results established that there is a long run relationship between the variables. The VECM test technique confirmed a unidirectional causality flowing from economic growth to renewable energy consumption. This implies that energy conservation policies may not harm the economic growth. The study, therefore, suggest that an appropriate and effective energy policy should be implemented in the long run. |
| Keywords: | Renewable energy consumption, Economic growth, Causality, Argentina |
| JEL: | C32 D04 Q0 Q01 Q42 Q47 |
| Date: | 2018–03–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:85080&r=env |
| By: | Daniel Henstra; Jason Thistlethwaite (University of Toronto) |
| Abstract: | Canadian municipalities are vulnerable to climate change risks, particularly in the form of extreme weather. Risk management demands public policies that share both the responsibility for risk reduction and the burden of costs with other levels of government and with non-governmental actors. What tools are available to municipalities seeking to share the growing risks associated with a changing climate? To what extent and how have these tools been employed in Canadian cities? With a focus on urban flooding, this paper systematically identifies and explains ways in which governments can share climate-related risks. It then evaluates whether and how these tools have been used in two major Canadian cities – Calgary, Alberta, and Toronto, Ontario – which have recently faced severe flooding, and are likely to experience more in the coming years. From this analysis, conclusions are drawn about the state of local climate risk management and how it might be improved. |
| Keywords: | Toronto, climate change, flood, risk management, cities |
| JEL: | H84 Q54 Q58 |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:mfg:wpaper:30&r=env |
| By: | Philippe Bélanger; Michael Bourdeau-Brien |
| Abstract: | Background – Whether due to climate change or due to bad urban planning, flooding is an important issue around the world. The point about climate change impact on see level and precipitation intensity is well known. Those impact will eventually increase the number of flooding area. Another reason for change in flooding area is the urban development and bad water management planning. Quebec City, in Canada, has been sued in court over the impact of flooding likely due to deficient water management for the city. In the same area, flooding area maps have been updated to take into account new risk. Been in these flooding area is likely to have an impact on real estate value. Purpose – This paper intend to bring a contribution about the value lost in flooding area. The paper present preliminary result using Quebec (Canada) data and include the impact of media coverage of risk in the pricing process. Approach / Methodology / Design – We use transaction databases, geographic information system (GIS) and building characteristics in order to analyze the impact of been in flooding area on the value of a residential building. Since houses near water usually has value added we control for the water shore distance. Literature shows that flooding area usually has impact on real estate value. Nevertheless some study show mitigated results. Uk data has been used to develop a methodology and are presented in a forthcoming paper. Quebec City data are based on transaction prices for the last 5 years as well as official municipality valuation. Results – As of now, results are preliminary but at the time of the conference, we will have the results for Quebec city that we will be able to relate the result to those of UK presented last year at ERES 2016. Limitations / implications – Quebec City data has individual characteristics associate with houses but the historical data are 5 years (compare with 20 for UK) and for a smaller area than what was available for UK. Practical implications – This is relevant to compute the value of mitigation installations (dam) or to assess the compensation to be offered to owner impacted by area that are newly at risk of flooding. Flood related depreciation is also relevant for insurance industry for coverage valuation. Originality / Value – We use GIS data allowing and use original data from Quebec which include a high media profile area and several "normal" areas. |
| Keywords: | Flood; GIS; Real Estate |
| JEL: | R3 |
| Date: | 2017–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2017_320&r=env |
| By: | Audi, Marc; Ali, Amjad |
| Abstract: | This paper has examined the determinants of environmental degradation under the perspective of globalization in the case of selected MENA nations (Jordan, United Arab Emirates, Saudi Arabia, Algeria, Qatar, Lebanon, Egypt, Bahrain, Iran, Morocco, Israel, Kuwait, Oman and Tunisia) over the period of 1980 to 2013. ADF - Fisher Chi-square, Im, Pesaran and Shin W-stat, Levin, Lin & Chu t*, and PP-Fisher Chi-square unit root tests are used for analyzing the stationarity of the variables. This study uses Panel ARDL approach for analyzing the co-integration among the variables. The causality between the variables is checked with the help of Granger Causality/Block Exogeneity Wald Tests. The estimated results of the study show that consumption of energy, economic growth, globalization and density of population have significant and positive relation with quality of environment in case of MENA nations. The results of this study show that most of the independent variables have causal relation with environmental degradation over the selected time period. The study concludes that inverted U-shaped KEC is not existed in the case of MENA nations. |
| Keywords: | economic development, population density, Globalization, environmental degradation |
| JEL: | O1 Q53 Q56 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:85776&r=env |
| By: | Petre, Ionut Laurentiu |
| Abstract: | Neonicotinoids are a class of chemical insecticides derived from nicotine. Like nicotine, neonicotinoids act on certain types of receptors in nerve synapses. They are much more toxic to invertebrates, such as insects, than to mammals and birds. The popularity of neonicotinoids for pest control is their water solubility, which allows them to be applied to the soil and taken over by the plants. The present paper will present, analyse and evaluate the impact of the use of these insecticides in the agriculture of Romania. In the first phase of the study, we will present the overall situation of the main cultures for which these neonicotinoids are used, by qualitative and quantitative analysis of data from local, national, European and international databases. In the second phase the effect and effort of the use or non-use of these insecticides in agriculture will be estimated. Thus, the difference in production will be determined in an untreated and treated one, and we will see the value of the neonicotinoids in production, on the other hand, the less positive effects of the use of these types of insecticides, namely pollution, or what they call some "ecological disaster", but also its effect on apiculture and implicitly on bees. This study will be pertinent and objective, without favoring or disfavoring any person or institution in these two areas. |
| Keywords: | neonicotinoids, effect, effort, agriculture, apiculture |
| JEL: | Q15 Q52 Q57 |
| Date: | 2017–11–16 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:85210&r=env |
| By: | Lin, Yu-Hsuan |
| Abstract: | This study examines the impact of social preferences on the individual incentives of participating in climate coalitions with laboratory experimental evidences. The theoretical result suggests that, when a player was inequality-neutral, a dominant strategy equilibrium could exist. However, individuals with social preference may lead a vacillated coalition formation. Joining or not joining depend on the player was critical or non-critical to an effective coalition respectively. The laboratory experimental result shows that players were inequality-averse and the coalition was usually larger than the equilibrium size but unstable. The inequality-averse attitudes have significantly positive impact on the incentives of participation. Particularly, when they are non-critical players, egalitarians are likely to give up the free riding benefit by joining a coalition. Our findings help to understand the climate coalition formation. |
| Keywords: | international environmental agreements; social preference; inequality-aversion; experimental design; climate coalition |
| JEL: | C91 D63 D71 Q54 Q58 |
| Date: | 2018–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:85428&r=env |
| By: | Saija Toivonen; Riikka Kyrö |
| Abstract: | Over the past few years, environmental sustainability as a whole has gained significantly more attention globally, and the connection between sustainability and the built environment has been made clear. The built environment is now more widely known to have major implications on both climate change, and resource use. This study draws on a previous study, which identified environmental pressure as one of the key future forces of change in the real estate market. The findings of the earlier study are re-visited to establish which of the expected outcomes have realized, which have proved to be irrelevant, and which might still occur in the future.Future studies employ a number of different tools and methods to forecast the future. This study first utilizes a method called environmental scanning to reveal the forces through which the environmental pressure shapes the current real estate market. Following the environmental scanning, the possible impacts of the forces are identified and their causal relationships are structured with the help of a method called the futures wheel. The futures wheel is a qualitative method based on expert opinions, and resembles structural brainstorming. The results of the future wheels are complemented utilising expert interviews. The results are analysed to verify the potential future impacts of those forces, and to finally arrive to a consensus about the most probable future impacts of the forces as currently foreseen.The study finds that while the future views have developed from the earlier study, few key issues remain. More specifically, the presumed primary sustainability influences are still related to the rise in demand of green buildings, and the existing density paradigm in urban planning. Another important finding is that, not all identified influences derive from environmental pressure, but stem from other major forces of change, such as urbanisation or digitalisation.The study offers insight into potential future pathways in the field of sustainable real estate. Most importantly, the study design enables attaining a holistic view of the possible impacts to the real estate market, as the combined methods reveal the complex relationships and even indirect impacts that could otherwise go unnoticed. |
| Keywords: | environmental pressure; Future studies; futures wheel; Real Estate Market; Sustainability |
| JEL: | R3 |
| Date: | 2017–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2017_278&r=env |
| By: | Jean Pierre Huiban (INRA-ALISS, France); Camilla Mastromarco (University of Salento, Lecce, Italy); Antonio Musolesi (University of Ferrara, Italy); Michel Simioni (INRA, UMR 1110 MOISA, Montpellier, France) |
| Abstract: | This paper estimates the impact of pollution abatement investments on the production technology of firms by pursuing two new directions. First, we take advantage of recent econometric developments in productivity, effciency analysis and nonparametric kernel regression by adopting a conditional nonparametric frontier analysis. Second, we focus not only on the average effect but also search for potential nonlinearities. We provide new results suggesting that pollution abatement capital affects with a bell-shaped fashion technological catch-up (ineffciency distribution) and does not affect technological change (shifts in the frontier). These results have relevant implications both for modeling and for the purposes of advice on environmentally friendly policy. |
| Keywords: | Pollution abatement investments, technology, conditional nonparametric frontier analysis, full and partial order frontiers, location-scale nonparametric regression, infinite order cross-validated local polynomial regression, separability condition. |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:0918&r=env |
| By: | Agnieszka Zalejska-Jonsson; Rosane Hungria-Gunnelin |
| Abstract: | Considering the climate change and urgent need for adaption of a new approach in building design and construction, the feedback from users is a highly valuable data. It is imperative to gather, analyse, and compare data on measured consumption for the purpose to increase our understanding about energy performance. Earlier research results indicate that energy and environmental targets are hard to deliver post-occupancy. It has been suggested that difference in the expected and delivered performance might be related to problems or lack of commissioning, inadequate building operation and even occupants’ behaviour. In this paper, we intent to test the assumption that the quality of the designed building is expressed in its final product. We examine a number of building features where end-users reported problems and discuss their potential effect on the buildings’ energy performance. We investigate if the occurrence of problem varies depending on climate zone, production year, building size and energy performance class. The data for this study was collected through survey. A total of 1,563 letters were posted with regular mail to all chairmen of condominium boards of residential estates built in Sweden between 2006 and 2014. We received 436 responses. We analysed data with help of descriptive statistics, principle component analysis (PCA) and Mann-Whitney test. PCA is used to group factors describing different quality problems and the Mann-Whitney test is used to investigate the significance level of differences in occurrence of specific-feature problems within subgroups. The results suggest that problems which occur in the new produced residential buildings are related to construction quality and may have significant effect on energy performance. The analysis of data suggests that new construction faces problem with building air tightness (especially the quality of windows and doors) and installations (HVAC), which have a direct impact on energy performance. Moreover, we observe that quality varies over time and may be dependent on market conditions. |
| Keywords: | Condominium apartments; Construction quality; Energy Performance; Residential Real Estate |
| JEL: | R3 |
| Date: | 2017–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2017_59&r=env |
| By: | Nicolò Barbieri (Department of Economics and Management, University of Ferrara (IT)); Alberto Marzucchi (SPRU, Science Policy Research Unit, University of Sussex (UK)); Ugo Rizzo (Department of Economics and Management, University of Ferrara (IT)) |
| Abstract: | The paper contributes to our understanding of the nature and impact of green technological change. We focus on the search and impact spaces of green inventions, scrutinising the knowledge recombination processes leading to the generation of the invention and the impact of the invention on subsequent technological developments. Using a large sample of patents filed during 1980-2012, we analyse a set of established patent indicators that capture different aspects of the invention process. Technological heterogeneity is controlled for by comparing green and non-green technologies within similar narrow technological domains. Green technologies are found to be more complex and radical than non-green ones and to have a larger and more pervasive impact on subsequent inventions. However, the results show a variety of distinctive patterns with respect to the knowledge dimension considered. We derive some important policy implications. |
| Keywords: | environmental inventions, patent data, knowledge recombination, knowledge impact |
| JEL: | O33 O34 Q55 |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2018-11&r=env |
| By: | Jean-Marie Baland (CRED - Centre de Recherche en Economie du Developpement - Facultés Universitaires Notre Dame de la Paix (FUNDP) - Namur, CEPR - Center for Economic Policy Research - CEPR, BREAD); François Libois (PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics, CRED - Centre de Recherche en Economie du Developpement - Facultés Universitaires Notre Dame de la Paix (FUNDP) - Namur); Dilip Mookherjee (BU - Boston University [Boston], BREAD) |
| Abstract: | We investigate the relation between economic growth, household firewood collection and forest conditions in Nepal between 2003 and 2010. Co-movements in these are examined at the household and village levels, combining satellite imagery and household (Nepal Living Standard Measurement Survey) data. Projections of the impact of economic growth based on Engel curves turn out to be highly inaccurate: forest conditions remained stable despite considerable growth in household consumption and income. Firewood collections at the village level remained stable, as effects of demographic growth were offset by substantial reductions in per-household collections. Households substituted firewood by alternative energy sources, particularly when livestock and farm based occupations declined in importance. Engel curve specifications which include household productive assets (a proxy for occupational patterns) provide more accurate predictions. Hence structural changes accompanying economic growth play an important role in offsetting adverse environmental consequences of growth. |
| Keywords: | Deforestation,Growth,Environmental Kuznets Curve,Nepal |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-01713390&r=env |
| By: | Chortareas, Georgios (King's College London and National and Kapodistrian University of Athens); Logothetis, Vassilis (Cardiff Business School); Papandreou, Andreas (National and Kapodistrian University of Athens) |
| Abstract: | We investigate how public opinion along with the electoral process affect the strength of environmental fiscal policies in the European Union (EU). Our analysis accounts for a set of economic, institutional, and political factors that can affect environmental taxes and expenditures. We pursue a dynamic panel data analysis covering 27 EU countries using public opinion data. We produce evidence showing that public concern for the environment, as gauged by opinion surveys, positively affects environmental protection expenditures, while elections negatively affect environmental tax revenues and environmental protection expenditures shrink in the aftermath of elections. We do not find evidence of partisan effects. The effect of public opinion and elections on environment-related fiscal decisions depends on the degree of integration with the global economy as well as several institutional factors including the level of corruption and the soundness of the rule of law. We also document that the results are impervious to a wide set of robustness tests. |
| Keywords: | Environmental Protection, Taxes and Expenditures, Public Opinion, European Union, Panel Data |
| JEL: | D72 Q58 C23 |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:cdf:wpaper:2018/9&r=env |
| By: | Alzúa, María Laura (Universidad Nacional de la Plata); Djebbari, Habiba (Université Laval); Pickering, Amy J. (Tufts University) |
| Abstract: | Basic sanitation facilities are still lacking in large parts of the developing world, engendering serious environmental health risks. Interventions commonly deliver in-kind or cash subsidies to promote private toilet ownership. In this paper, we assess an intervention that provides information and behavioral incentives to encourage villagers in rural Mali to build and use basic latrines. Using an experimental research design and carefully measured indicators of use, we find a sizeable impact from this intervention: latrine ownership and use almost doubled in intervention villages, and open defecation was reduced by half. Our results partially attribute these effects to increased knowledge about cheap and locally available sanitation solutions. They are also associated with shifts in the social norm governing sanitation. Taken together, our findings, unlike previous evidence from other contexts, suggest that a progressive approach that starts with ending open defecation and targets whole communities at a time can help meet the new Sustainable Development Goal of ending open defecation. |
| Keywords: | sanitation, behavioral change, community-based intervention, social norm |
| JEL: | Q53 Q58 D78 |
| Date: | 2018–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11446&r=env |
| By: | Giorgio Fabbri (GAEL - Laboratoire d'Economie Appliquée de Grenoble - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes); Silvia Faggian (Department of Economics, Ca' Foscari University of Venice); Giuseppe Freni (Department of Business and Economics, Parthenope University of Naples) |
| Abstract: | We develop a spatial resource model in continuous time in which two agents strategically exploit a mobile resource in a two-locations setup. In order to contrast the overexploitation of the resource (the tragedy of commons) that occurs when the player are free to choose where to fish/hunt/extract/harvest, the regulator can establish a series of spatially structured policies. We compare the three situations in which the regulator: (a) leaves the player free to choose where to harvest; (b) establishes a natural reserve where nobody is allowed to harvest; (c) assigns to each player a specific exclusive location to hunt. We show that when preference parameters dictate a low harvesting intensity, the policies cannot mitigate the overexploitation and in addition they worsen the utilities of the players. Conversely, in a context of harsher harvesting intensity, the intervention can help to safeguard the resource, preventing the extinction and also improving the welfare of both players. |
| Keywords: | Spatial harvesting problems, Markov perfect equilibrium, Environmental protec-,tion policies, Differential Games |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01762471&r=env |
| By: | Michaël Goujon (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This short note recalls the debated conclusions of the literature on the impact of decolonization for small islands. It also presents an overview of compared performances of New-Caledonia in terms of human development and inequalities. It concludes with some thoughts on the vulnerability of New-Caledonia, in the face of climate change particularly. |
| Abstract: | Texte de présentation au colloque Inégalités sociales et décolonisation – Les rééquilibrages de la Nouvelle-Calédonie, Nouméa, 14-15 décembre 2017, organisé par l’Université Clermont Auvergne et la Maison de la Mélanésie. Cette courte note rappelle des conclusions, débattues, de la littérature sur l’impact de la décolonisation des petites îles. Elle présente également un panorama des performances comparées de la Nouvelle-Calédonie en termes de développement et d’inégalités humaines. Elle conclut avec quelques réflexions s’agissant de la vulnérabilité de la Nouvelle-Calédonie, notamment face au changement climatique. |
| Keywords: | Indicators, Development, Poverty, Climate change. |
| Date: | 2018–04–09 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01761932&r=env |
| By: | Quatraro, Francesco; Scandura, Alessandra (University of Turin) |
| Abstract: | This work investigates the generation of green technologies (GTs) in Italian NUTS 3 regions across time, by focusing on the knowledge generation mechanisms underlying the creation of green patents. Firstly, we hypothesize that inventions in non-green technological domains positively influence the generation of GTs, because the latter occur as the outcome of a recombination process among a wide array of technological domains. Secondly, we hypothesise that the involvement of academic inventors in patenting activity bears positive effects on the generation of GTs, because they are able to manage the recombination across different technological domains. Thirdly, we explore the interaction effect between academic inventors’ involvement and non-green technologies to investigate whether the former are especially relevant in presence of higher or lower levels of the latter. We estimate zero-inflated negative binomial, spatial durbin and logistic regressions on a dataset of 103 Italian NUTS 3 regions for which we collected patent and regional data for the time span 1998-2009. The results suggest that both academic inventors and spillovers from polluting technologies bear positive direct effects on the generation of GTs; moreover, we find that academic inventors compensate for low levels of spillovers. |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:uto:dipeco:201806&r=env |
| By: | Marc A. C. Hafstead; Roberton C. Williams III; Yunguang Chen |
| Abstract: | This paper assesses the use of full-employment computable-general equilibrium (CGE) models to predict the labor-market effects of environmental policy. Specifically, it compares the predictions of a standard full-employment CGE model with those of a new search-CGE model with labor-search frictions and resulting unemployment (but that is otherwise identical to the full-employment model). The search-CGE captures key labor market details, including a distinction between the extensive margin of labor demand (the number of employees) and the intensive margin (the number of hours each employee works). We find that some key results are robust across the two models, such as the reallocation of labor across sectors in response to a carbon tax and the overall change in total labor demand. However, the full-employment model seriously overestimates the economy-wide net change in the number of jobs (by a factor of more than 2.5 for a carbon tax with revenues returned lump-sum to households, and by a factor of almost 3.5 when carbon tax revenues are used to reduce payroll taxes). |
| JEL: | E24 H23 J64 Q52 Q58 |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:24505&r=env |
| By: | Nguyen, Ha Trong; Le, Huong Thu; Connelly, Luke B. |
| Abstract: | This paper presents the first robust causal estimates of the effect of weather on the allocation of children’s time. It uses individual-level data from over 45,000 time-use diaries of children from two nationally representative cohorts of Australian children whose time-use diaries were surveyed biannually over 10 years to measure the time allocation of children and exploits exogenous variations in local weather conditions observed during the random diary dates. Unfavourable weather conditions, as represented by cold or hot temperature or rain, cause children to switch activities from outdoors to indoors, mainly by reducing the time allocated to active pursuits and travel and increasing the time allocated to media. The effects of weather are more pronounced on weekends and are heterogeneous across different population sub-groups. The results also provide some evidence of adaptation, as temperature tends to have greater impact not only in winter months but also in colder regions. The findings are robust to a wide range of sensitivity checks, including controlling for individual fixed effects and using alternative model specifications. |
| Keywords: | weather, time allocation, time-use diary, children |
| JEL: | J13 J22 Q54 |
| Date: | 2018–04–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:85731&r=env |
| By: | Stijepic, Denis; Wagner, Helmut |
| Abstract: | We propose a system-theoretical model for analyzing the sustainability of (economic) growth and development. In particular, we set up a general dynamic system describing the dynamics of the economic and non-economic system (where the latter encompasses, e.g., the ecological, socio-cultural, and political subsystem), their interactions, the dynamics of development indicators, and the sustainability concepts. Then, we discuss the major aspects of sustainability in this framework, in particular, drivers of sustainable development and their direct and indirect/cross-system impacts on development indicators, dynamic equilibria in relation to sustainability, cross-system feedbacks, intra-system interactions, critique of non-interdisciplinary sustainability studies, and sustainability policy design. |
| Keywords: | economic growth; economic development; long-run dynamics; sustainability; systems; cross-system interactions; economic system; socio-cultural system; political system; ecological system; dynamic systems theory; dynamic equilibrium |
| JEL: | A12 O40 |
| Date: | 2017–12–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:86147&r=env |
| By: | Colacito, Riccardo (University of North Carolina at Chapel Hill); Hoffman, Bridget (Inter-American Development Bank); Phan, Toan (Federal Reserve Bank of Richmond) |
| Abstract: | We document that seasonal temperatures have significant and systematic effects on the U.S. economy, both at the aggregate level and across a wide cross-section of economic sectors. This effect is particularly strong for the summer: a 1 degree F increase in the average summer temperature is associated with a reduction in the annual growth rate of state-level output of 0.15 to 0.25 percentage points. We combine our estimates with projected increases in seasonal temperatures and find that rising temperatures could reduce U.S. economic growth by up to one-third over the next century. |
| Keywords: | economic growth; temperature; climate change |
| JEL: | O44 Q51 Q59 R11 |
| Date: | 2018–04–11 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedrwp:18-09&r=env |
| By: | Renard Sexton (Princeton University) |
| Abstract: | Natural resource extraction is increasingly important in many developing countries, but harmful externalities threaten the viability of the sector. This paper articulates and finds evidence for a new ‘resource curse,’ whereby negative side effects from resource extraction increase social conflict in nearby communities. Using micro-level data on extractive commodities, water pollution, children’s and livestock health, local government quality and mining-related social conflict in Peru, this study shows that rising international prices increase conflict, pollution and negative health effects, but not public spending in mining areas. These effects disappear when local government is high quality, indicating that good governance can temper the effects of this new resource curse. |
| Keywords: | Peru, Conflict, Natural resources, Externalities, Governance |
| JEL: | D74 Q34 O13 L72 |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:pri:esocpu:9&r=env |
| By: | Dempsey, Seraphim; Lyons, Seán; Nolan, Anne |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:rb201810&r=env |
| By: | Tom Daamen; Erik Louw |
| Abstract: | Seaport regions are the most urbanized and challenging places on the planet. Home to the highest concentrations of human enterprise and diversity, seaport regions offer the best conditions for cities and industries to develop and create economic as well as social wealth. In Europe, many seaport regions accommodate economic clusters and industries that need to innovate and transform in order to survive and contribute to a prosperous port as well as a liveable city—two goals that are often at odds with each other in seaport regions across the union. The innovation and transformation needed in seaport regions demand new planning approaches and governance arrangements on the interplay between economic and spatial conditions. At the geographical centre of such arrangements lies the so-called port-city interface: waterfront zones that serve as areas of transition between the services and amenities-based urban economy on the one hand, and the production and distribution-based business of the port on the other. The usual planning and development approach to these areas is port-to-urban transformation. In this approach, former places of production become ‘places of consumption’ characterised by upmarket property development and iconic architecture—transformation projects that frequently yield criticism with regard to the sustainability of their outcomes in economic, social as well as environmental terms. Throughout the past decade, it has been observed that responsible authorities in seaport cities have started to reconsider the transformation-oriented planning and development approach to their respective waterfront zones. This reassessment seems influenced by progress in academic understandings of the European port-city interface in tangible as well as more elusive—but no less significant—terms. Authoritative policy advice organisations such as the Organisation for Economic Co-operation and Development (OECD) and the International Association for Cities and Ports (IACP) have also adopted conceptualisations of the port-city interface that promote sustainable planning and development approaches to waterfront zones. This ERES paper revisits, updates and expands upon a 2007 paper on the sustainable development of the European port-city interface. Adopting an interdisciplinary perspective, we will draw together and assess the—largely case study-based—body of academic literature on the changing European port-city interface and the related phenomenon of waterfront |
| Keywords: | Planning; Port-city interface; Waterfront developments |
| JEL: | R3 |
| Date: | 2017–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2017_304&r=env |
| By: | Hübner, Felix; Jung, Jennifer Jana; Schultmann, Frank |
| Abstract: | Worldwide, nuclear fission is used to produce electricity. On the one hand, the low emission of CO2 is often mentioned as an advantage of this technology. On the other hand, warnings about the dangers of nuclear fission are mentioned. Consequently, an overview about the dangers of ionizing radiation to human beings as well as animals and the environment is important. However, the focus will be on possible health effects for humans with regards to nuclear power plants. In nuclear power plants, both natural types of radiation and artificially produced radiation occur. During normal operation, it is possible that small quantities of this ionizing radiation are released to the environment. In case of nuclear disasters or faults during decommissioning and dismantling processes the consequences of thereby emitted quantities can be even more severe. Reference nuclides vary by reactor type, operating stage and respective incident. At the beginning, different types of radiation and their characteristics and effects on the affected organism are explained. Sensitive organs are emphasized in this context. The individual risk is determined by numerous factors and therefore cannot be predicted. Based on scientific studies and medical publications the hazards of ionizing radiation are compiled. Effects of high exposure of ionizing radiation are well-investigated. Scientists are still divided over the connection between several diseases and the exposure to low doses of ionizing radiation. For this reason, the positions of different international organizations are critically contrasted in this study. |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:kitiip:19&r=env |
| By: | Marchetta, Francesca (CERDI, University of Auvergne); Sahn, David E. (Cornell University); Tiberti, Luca (Partnership for Economic Policy (pep)) |
| Abstract: | We examine the impact of rainfall variability and cyclones on schooling and work among a cohort of teens and young adults by estimating a bivariate probit model, using a panel survey conducted in 2004 and 2011 in Madagascar − a poor island nation that is frequently affected by extreme weather events. Our results show that negative rainfall deviations and cyclones reduce the current and lagged probability of attending school and encourage young men and, to a greater extent, women to enter the work force. Less wealthy households are most likely to experience this school-to-work transition in the face of rainfall shocks. The finding is consistent with poorer households having less savings and more limited access to credit and insurance, which reduces their ability to cope with negative weather shocks. |
| Keywords: | climate shocks, employment, schooling, Africa |
| JEL: | Q54 J43 I25 |
| Date: | 2018–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11435&r=env |
| By: | Rosendahl, Knut Einar (School of Economics and Business, Norwegian University of Life Sciences); Rubiano, Diana Roa (School of Economics and Business, Norwegian University of Life Sciences) |
| Abstract: | We investigate to what extent recycling can remedy resource scarcity, and whether market intervention is desired. For doing so, we develop a dynamic model of the global lithium market. An efficient market for resource waste allows consumers to internalize the waste value when they buy the resource. In the analytical part of our paper, we show that the efficient market can alternatively be realized through a proper set of worldwide subsidies to either buyers or sellers of both virgin and recycled lithium. In our numerical simulations, we find that optimal subsidies may become quite substantial in the second half of this century. The size of these subsidies depends, however, on a number of uncertain assumptions such as technological progress in both extraction and recycling, quality-grade of recovered lithium, and demand elasticity. |
| Keywords: | Natural Resource Economics; Exhaustible resources; Minerals; Recycling |
| JEL: | L72 Q30 Q40 Q53 |
| Date: | 2018–04–13 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nlsseb:2018_003&r=env |
| By: | FLAVIO TOSI FEIJÓ |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:anp:en2016:100&r=env |
| By: | Guillaume Pfund (EVS - Environnement Ville Société - CNRS - Centre National de la Recherche Scientifique - ENSAL - École nationale supérieure d'architecture de Lyon - Ecole Nationale Supérieure des Mines de Saint-Etienne - ENTPE - École Nationale des Travaux Publics de l'État - UJM - Université Jean Monnet [Saint-Étienne] - Université Jean Moulin - Lyon III - UL2 - Université Lumière - Lyon 2 - ENS Lyon - École normale supérieure - Lyon) |
| Date: | 2016–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01700268&r=env |
| By: | Black-Arbeláez, Thomas |
| Abstract: | Una amplia gama de actores en los países de América Latina y el Caribe están interesados en analizar el impacto potencial de las metas de mitigación de emisiones de gases de efecto invernadero que han asumido sus Gobiernos en las contribuciones previstas determinadas a nivel nacional. Entre estos se incluyen los bancos centrales, los Ministerios de Hacienda, Desarrollo Económico, Transporte, Medio Ambiente y Comercio Internacional, los gremios de los sectores productivos y los sindicatos de trabajadores, entre otros. Los análisis que se presentan en este estudio permitirán que los responsables de la toma de decisiones hagan una comparación sencilla y transparente de los diferentes niveles de ambición expresados en las contribuciones previstas determinadas a nivel nacional. De este modo se busca apoyar a los Gobiernos y actores interesados en el proceso de selección y diseño de políticas públicas de mitigación para que logren las metas sin distorsionar la competitividad de los sectores emisores de gases de efecto invernadero. Se espera así que estas indicaciones contribuyan a que tanto los Gobiernos como los sectores productivos regulados y la sociedad civil comprendan y puedan comparar y contrastar las metas nacionales de su país con las de los países competidores. |
| Keywords: | CAMBIO CLIMATICO, DESARROLLO SOSTENIBLE, PROTECCION AMBIENTAL, ASPECTOS AMBIENTALES, ANALISIS ECONOMICO, GAS DE EFECTO INVERNADERO, AGENDA 2030 PARA EL DESARROLLO SOSTENIBLE, CLIMATE CHANGE, SUSTAINABLE DEVELOPMENT, ENVIRONMENTAL PROTECTION, ENVIRONMENTAL ASPECTS, ECONOMIC ANALYSIS, GREENHOUSE GASES, 2030 AGENDA FOR SUSTAINABLE DEVELOPMENT |
| Date: | 2018–03–31 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:43419&r=env |
| By: | Hübner, Felix; Jung, Jennifer Jana; Schultmann, Frank |
| Abstract: | In den 1950er und 1960er Jahren glaubten viele Länder, dass sie mit Hilfe der zivilen Nutzung der Kernenergie energieautark werden können. Unter anderem aus diesem Grund erlebte die Kernenergie in diesen Jahren international einen enormen Aufschwung. In den folgenden Jahrzehnten wurden viele Kernkraftwerke geplant und gebaut. Trotz einiger Kritiker, die auf die Gefahren der Kernenergienutzung aufmerksam machten, war ein Ende des Aufschwungs zunächst nicht in Sicht. Als im Jahr 1979 der Reaktorunfall eines Kernkraftwerkes westlicher Bauart in Three Mile Island in Harrisburg (USA) auf internationaler Ebene für Aufsehen sorgte, wurde die Kritik an der Kernenergienutzung lauter. Allerdings wurde vielen Europäern die von Kernkraftwerken ausgehende Gefahr erst im Jahr 1986 bewusst, als es im ukrainischen Kernkraftwerk Tschernobyl zu einer Nuklearkatastrophe kam. Aufgrund der relativen Nähe zu Mitteleuropa waren Auswirkungen dieser Nuklearkatastrophe auch in diesen Gebieten spürbar. Zuletzt hat die Nuklearkatastrophe im japanischen Kernkraftwerk Fukushima Daiichi dazu geführt, dass in Deutschland und weltweit ein beschleunigter Ausstieg aus der Nutzung der Kernenergie vorangetrieben wird. In dieser Arbeit stehen nicht die politischen Auswirkungen der genannten nuklearen Unfälle, sondern vielmehr die Auswirkungen nuklearer Unfälle auf Menschen, Tiere und die Umwelt im Vordergrund. Dazu werden insbesondere Berichte über die Vorkommnisse in Tschernobyl und Fukushima sowie Studien über deren Auswirkungen analysiert und zusammengefasst. |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:kitiip:21&r=env |
| By: | MUNIQUE SANTOS MOURA; ANA PAULA MACEDO DE AVELLAR |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:anp:en2016:136&r=env |
| By: | Lüth, Juri; Jäger, Tobias; McKenna, Russell; Fichtner, Wolf |
| Abstract: | Anhand vorhandener Daten der Gebäude von Baden-Württemberg werden die Potenziale zur Stromerzeugung auf Gebäudedächern mittels Photovoltaik ermittelt. In Kosten- Potenzial-Kurven werden sie dann mit den entsprechenden Stromgestehungskosten aufgetragen. Dies erfolgt zunächst für das Jahr 2014. Die entsprechenden Werte werden dann mit Hilfe von 3 Marktszenarien für die Jahre 2020, 2030 und 2040 berechnet. Für Baden-Württemberg ergibt sich ein technisches Potenzial von 32,9 TWh. Dieses erhöht sich in den folgenden Jahren auf 40,6 TWh im Jahr 2020, 43,8TWh in 2030 und 48,0 TWh bis 2040. Die Heutigen tromgestehungskosten bewegen sich zwischen 9,3 Cent/kWh und 30,9 Cent/kWh. Bis 2020 sinken sie nach dem „Paradigm Shift Szenario“ auf 4,8 Cent/kWh bis 29,9 Cent/kWh. |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:kitiip:20&r=env |
| By: | OLIVAN DA SILVA RABÊLO; ANDREA SALES SOARES DE AZEVEDO MELO |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:anp:en2016:179&r=env |
| By: | Petkov, Ivan |
| Abstract: | This paper challenges the notion that changes in flood risk will have a minimal impact on population because of the availability of insurance and that most of the effect, if any, will be borne out by the real estate market. Insurance premiums even when subsidized are a cost that a household will need to pay with the increase in flood risk. The evidence suggests that flood events, historical and contemporaneous, play a role in the determination of the local perceived flood risk. Attractive communities that have positive growth before the flood surprise are hardest hit. They see a persistent 1.4\% dip in population with a 0.7\% decrease in the pre-flood trend. Flooding does not affect population in the rest of the high surprise locations. Instead, they see close to 4\% drop real estate values with the biggest effect among higher tier housing. There is also evidence that flood incidence in these communities is higher among the low-income population as suggested by relief payments by FEMA. |
| Keywords: | Population, Flood Surprises, Climate Change Real Estate, Natural Disasters |
| JEL: | J61 Q54 R11 R30 |
| Date: | 2018–03–26 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:85759&r=env |